Document:

Symmetry Medical Inc. 2003 Stock Option Plan

 EXHIBIT 10.12 
  
 SYMMETRY MEDICAL INC. 
 2003 STOCK OPTION PLAN 
  
 ARTICLE I 
 Purpose of Plan 
  
 The 2003 Stock Option Plan (the “Plan”) of Symmetry Medical Inc., a Delaware corporation (the “Company”), adopted by the Board
of Directors of the Company on June 11, 2003, for present and future directors, officers and employees of, and consultants and advisors to, the Company, is intended to advance the best interests of the Company by providing those persons who have a
substantial responsibility for its management and growth with additional incentives by allowing them to acquire an ownership interest in the Company and thereby encouraging them to contribute to the success of the Company. The availability and
offering of stock options under the Plan also increases the Company’s ability to attract and retain individuals of exceptional managerial talent upon whom, in large measure, the sustained progress, growth and profitability of the Company
depends. 
  
 ARTICLE II 
 Definitions 
  
 For purposes of the Plan, except where the context clearly indicates otherwise, the following terms shall have the meanings set forth below: 

 
 “Board” shall mean the Board of Directors of the Company.

  
 “Cause” shall mean (i) a Participant’s
theft or embezzlement, or attempted theft or embezzlement, of money or property of the Company, a Participant’s perpetration or attempted perpetration of fraud, or a Participant’s participation in a fraud or attempted fraud, on the Company
or a Participant’s unauthorized appropriation of, or a Participant’s attempt to misappropriate, any tangible or intangible assets or property of the Company, (ii) any act or acts of disloyalty, misconduct or moral turpitude by a
Participant injurious to the interest, property, operations, business or reputation of the Company or a Participant’s conviction of a crime the commission of which results in injury to the Company or (iii) a Participant’s failure or
inability (other than by reason of Disability) to carry out effectively his duties and obligations to the Company or to participate effectively and actively in the management of the Company, as determined in the reasonable judgment of the Board.

  
 “Code” shall mean the Internal Revenue Code
of 1986, as amended, and any successor statute. 
  
 “Committee” shall mean the committee of the Board which may be designated by the Board to administer the Plan. The Committee shall be composed of two or more directors as appointed from time to time to serve by the Board.

 “Common Stock” shall mean the Company’s Common Stock, par value $.01 per share, or
if the outstanding Common Stock is hereafter changed into or exchanged for different stock or securities of the Company, such other stock or securities. 
  
 “Company” shall mean Symmetry Medical Inc., a Delaware corporation, and (except to the extent the context requires otherwise) any
subsidiary corporation of Symmetry Medical Inc. as such term is defined in Section 424(f) of the Code. 
  
 “Disability” shall mean the inability, due to illness, accident, injury, physical or mental incapacity or other disability, of any
Participant to carry out effectively his duties and obligations to the Company or to participate effectively and actively in the management of the Company for a period of at least 90 consecutive days or for shorter periods aggregating at least 120
days (whether or not consecutive) during any twelve-month period, as determined in the reasonable judgment of the Board. 
  
 “Fair Market Value” of the Common Stock shall be determined by the Committee or, in the absence of the Committee, by the Board.

  
 “Independent Third Party” means any person
who, immediately prior to the contemplated transaction, does not own directly or indirectly in excess of 5% of the Company’s voting capital stock on a fully-diluted basis (a “5% Owner”), who does not control, is not controlled by or
under common control with any such 5% Owner and who is not the spouse or descendent (by birth or adoption) of any such 5% Owner or a trust for the benefit of such 5% Owner and/or such other persons. 
  
 “Options” shall have the meaning set forth in Article IV.

  
 “Participant” shall mean any director,
officer or employee of, or consultant or advisor to, the Company who has been selected to participate in the Plan by the Committee or the Board. 
  
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 
  
 “Sale of the Company” shall mean a sale of all or substantially all of the Company’s assets determined on a consolidated basis or a
sale of all or substantially all of the Company’s outstanding capital stock (whether by merger, recapitalization, consolidation, reorganization, combination or otherwise) to an Independent Third Party. 
  
 ARTICLE III 
 Administration 
  
 The Plan shall be administered by the Committee; provided that if for any reason the Committee shall not have been appointed by the Board, all authority and duties of the Committee under the Plan shall be vested in
and exercised by the Board. Subject to the limitations of the Plan, the Committee shall have the sole and complete authority to: (i) select Participants, (ii) grant Options (as defined in Article IV below) to Participants in such forms and amounts
as it shall determine, (iii) impose such limitations, restrictions and conditions upon such Options as it 
  

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 shall deem appropriate, (iv) interpret the Plan and adopt, amend and rescind administrative guidelines and other rules
and regulations relating to the Plan, (v) correct any defect or omission or reconcile any inconsistency in the Plan or in any Option granted hereunder and (vi) make all other determinations and take all other actions necessary or advisable for the
implementation and administration of the Plan. The Committee’s determinations on matters within its authority shall be conclusive and binding upon the Participants, the Company and all other Persons. All expenses associated with the
administration of the Plan shall be borne by the Company. The Committee may, as approved by the Board and to the extent permissible by law, delegate any of its authority hereunder to such persons as it deems appropriate. 
  
 ARTICLE IV 
 Limitation on Aggregate Shares 
  
 The number of shares of Common Stock with respect to which options may be granted under the Plan (the “Options”) and which may be issued upon the exercise thereof shall not exceed, in the aggregate,
125,282 shares; provided that the type and the aggregate number of shares which may be subject to Options shall be subject to adjustment in accordance with the provisions of paragraph 6.8 below, and further provided that to the extent any Options
expire unexercised or are canceled, terminated or forfeited in any manner without the issuance of Common Stock thereunder, such shares shall again be available under the Plan. The shares of Common Stock available under the Plan may be either
authorized and unissued shares, treasury shares or a combination thereof, as the Committee shall determine. 
  
 ARTICLE V 
 Awards Options. 
  
 5.1 Options. The Committee may grant Options to Participants in
accordance with this Article V. 
  
 5.2 Form of Option.
Options granted under this Plan shall be nonqualified stock options and are not intended to be “incentive stock options” within the meaning of Section 422 of the Code or any successor provision. 
  
 5.3 Exercise Price. The option exercise price per share of Common
Stock shall be fixed by the Committee at not less than 100% of the Fair Market Value of a share of Common Stock on the date of grant. 
  
 5.4 Exercisability. Options shall be exercisable at such time or times as the Committee shall determine at or subsequent to grant. 
  
 5.5 Payment of Exercise Price. Options shall be exercised in whole or
in part by written notice to the Company (to the attention of the Company’s Secretary) accompanied by payment in full of the option exercise price. Payment of the option exercise price shall be made in cash (including check, bank draft or money
order) or, in the discretion of the Committee, by delivery of a promissory note or other consideration (if in accordance with policies approved by the Board). 
  

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 5.6 Terms of Options. The Committee shall determine the term of each Option, which term shall in
no event exceed ten years from the date of grant. 
  
 ARTICLE VI

 General Provisions 
  
 6.1 Conditions and Limitations on Exercise. Options may be made exercisable in one or more installments, upon the happening of certain events, upon
the passage of a specified period of time, upon the fulfillment of certain conditions or upon the achievement by the Company of certain performance goals, as the Committee shall decide in each case when the Options are granted. 
  
 6.2 Sale of the Company. In the event of a Sale of the Company, the
Committee may provide, in its discretion, that the Options shall become immediately exercisable by any Participants who are employed or engaged as independent contractors by the Company at the time of the Sale of the Company and that such Options
shall terminate if not exercised as of the date of the Sale of the Company or other prescribed period of time. 
  
 6.3 Written Agreement. Each Option granted hereunder to a Participant shall be embodied in a written agreement (an “Option
Agreement”) which shall be signed by the Participant and by the President or Chief Executive Officer of the Company for and in the name and on behalf of the Company and shall be subject to the terms and conditions of the Plan prescribed in
the Agreement (including, but not limited to, (i) the right of the Company and such other Persons as the Committee shall designate (“Designees”) to repurchase from each Participant, and such Participant’s transferees, all
shares of Common Stock issued or issuable to such Participant on the exercise of an Option in the event of such Participant’s termination of employment, (ii) rights of first refusal granted to the Company and Designees, (iii) holdback and other
registration right restrictions in the event of a public registration of any equity securities of the Company and (iv) any other terms and conditions which the Committee shall deem necessary and desirable). 
  
 6.4 Listing. Registration and Compliance with Laws and Regulations.
Options shall be subject to the requirement that if at any time the Committee shall determine, in its discretion, that the listing, registration or qualification of the shares subject to the Options upon any securities exchange or under any state or
federal securities or other law or regulation, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to or in connection with the granting of the Options or the issuance or purchase of shares
thereunder, no Options may be granted or exercised, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. The holders
of such Options shall supply the Company with such certificates, representations and information as the Company shall request and shall otherwise cooperate with the Company in obtaining such listing, registration, qualification, consent or approval.
In the case of officers and other Persons subject to Section 16(b) of the Securities Exchange Act of 1934, as amended, the Committee may at any time impose any limitations upon the exercise of an Option that, in the Committee’s discretion, are
necessary or desirable in order to comply with such Section 16(b) and the rules and regulations thereunder. If the Company, as part of an offering of securities or otherwise, finds it desirable 
  

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 because of federal or state regulatory requirements to reduce the period during which any Options may be exercised, the
Committee, may, in its discretion and without the Participant’s consent, so reduce such period on not less than 15 days written notice to the holders thereof. 
  
 6.5 Nontransferability. Options may not be transferred other than by will or the laws of descent and distribution
and, during the lifetime of the Participant, may be exercised only by such Participant (or his legal guardian or legal representative). In the event of the death of a Participant, exercise of Options granted hereunder shall be made only: 

 
 (i) by the executor or administrator of the estate of the
deceased Participant or the Person or Persons to whom the deceased Participant’s rights under the Option shall pass by will or the laws of descent and distribution; and 
  
 (ii) to the extent that the deceased Participant was entitled thereto at the date of his death, unless
otherwise provided by the Committee in such Participant’s Option Agreement. 
  
 6.6 Expiration of Options. 
  
 (a) Normal Expiration. In no event shall any part of any Option be exercisable after the date of expiration thereof (the “Expiration Date”), as determined by the Committee pursuant to paragraph 5.6 above. 

 
 (b) Early Expiration Upon Termination of Employment or Engagement.
Except as otherwise provided by the Committee in the Option Agreement, any portion of a Participant’s Option that was not vested and exercisable on the date of the termination of such Participant’s employment shall expire and be forfeited
as of such date, and any portion of a Participant’s Option that was vested and exercisable on the date of the termination of such Participant’s employment shall expire and be forfeited as of such date, except that: (i) if any Participant
dies or becomes subject to any Disability, such Participant’s Option shall expire 180 days after the date of his death or Disability, but in no event after the Expiration Date, (ii) if any Participant retires (with the approval of the Board),
his Option shall expire 90 days after the date of his retirement, but in no event after the Expiration Date, and (iii) if any Participant is discharged other than for Cause, such Participant’s Option shall expire 30 days after the date of his
discharge, but in no event after the Expiration Date. 
  
 6.7
Withholding of Taxes. The Company shall be entitled, if necessary or desirable, to withhold from any Participant from any amounts due and payable by the Company to such Participant (or secure payment from such participant in lieu of
withholding) the amount of any withholding or other tax due from the Company with respect to any shares issuable under the Options, and the Company may defer such issuance unless indemnified to its satisfaction. 
  
 6.8 Adjustments. In the event of a reorganization, recapitalization,
stock dividend or stock split, or combination or other change in the shares of Common Stock, the Board or the Committee may, in order to prevent the dilution or enlargement of rights under outstanding Options, make such adjustments in the number and
type of shares authorized by the Plan, the number and type of shares covered by outstanding Options and the exercise prices specified therein as may be determined to be appropriate and equitable. 
  

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 6.9 Rights of Participants. Nothing in this Plan or in any Option Agreement shall interfere with
or limit in any way the right of the Company to terminate any Participant’s employment at any time (with or without Cause), or confer upon any Participant any right to continue in the service of the Company for any period of time or to continue
his present (or any other) rate of compensation, and except as otherwise provided under this Plan or by the Committee in the Option Agreement, in the event of any Participant’s termination of employment (including, but not limited to, the
termination by the Company without Cause), any portion of such Participant’s Option that was not previously vested and exercisable shall expire and be forfeited as of the date of such termination. No director, officer, employee, consultant or
advisor shall have a right to be selected as a Participant or, having been so selected, to be selected again as a Participant. 
  
 6.10 Amendment. Suspension and Termination of Plan. The Board or the Committee may suspend or terminate the Plan or any portion thereof at any time
and may amend it from time to time in such respects as the Board or the Committee may deem advisable; provided that no such amendment shall be made without stockholder approval to the extent such approval is required by law, agreement or the rules
of any exchange upon which the Common Stock is listed, and no such amendment, suspension or termination shall impair the rights of Participants under outstanding Options without the consent of the Participants affected thereby. No Options shall be
granted hereunder after the tenth anniversary of the adoption of the Plan. 
  
 6.11 Amendment, Modification and Cancellation of Outstanding Options. 
  
 (a) The Committee may amend or modify any Option in any manner to the extent that the Committee would have had the authority under the
Plan initially to grant such Option; provided that no such amendment or modification shall impair the rights of any Participant under any Option without the consent of such Participant. With the Participant’s consent, the Committee may cancel
any Option and issue a new Option to such Participant. 
  
 (b) Notwithstanding anything herein to the contrary, in connection with a Sale of the Company, the Committee may, in its discretion, (i) cancel any or all outstanding Options under the Plan in consideration for payment to the holders
thereof of an amount equal to the portion of the consideration that would have been payable to such holders pursuant to such transaction if their Options had been fully exercised immediately prior to such transaction, less the aggregate exercise
price that would have been payable therefor, and (ii) if the amount that would have been payable to the option holders pursuant to such transaction if their Options had been fully exercised immediately prior thereto would be less than the aggregate
exercise price that would have been payable therefor, cancel any or all-such options for no consideration or payment of any kind. Any amount due pursuant to the preceding sentence may be paid in cash or, in the event that the consideration to be
received in such transaction includes securities or other property, in cash and/or securities or other property in the Committee’s discretion. 
  
 6.12 Indemnification. In addition to such other rights of indemnification as they may have as members of the Board or the Committee, the members of
the Committee shall be indemnified by the Company against all costs and expenses reasonably incurred by them in connection with any action, suit or proceeding to which they or any of them may be party by 
  

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 reason of any action taken or failure to act under or in connection with the Plan or any Option granted thereunder, and
against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding; provided that
any such Committee member shall be entitled to the indemnification rights set forth in this paragraph 6.12 only if such member has acted in good faith and in a manner that such member reasonably believed to be in or not opposed to the best interests
of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe that such conduct was unlawful, and further provided that upon the institution of any such action, suit or proceeding a Committee member shall
give the Company written notice thereof and an opportunity, at its own expense, to handle and defend the same before such Committee member undertakes to handle and defend it on his own behalf. 
  
 * * * * 
  

 7Form of Nonqualified Stock Option Agreement issued under 2003 Stock Option Plan

 Exhibit 10.13 
  
 FORM OF NONQUALIFIED STOCK OPTION AGREEMENT 
  
 ——————— 
  
 ——————— 
 ——————— 
 ——————— 
  

	Re:	Symmetry Medical Inc. (the “Company”) 

 Grant of Non qualified Stock Option 
  
 Dear Andrew: 

 
 The Company is pleased to advise you that its Board of Directors has
granted to you a stock option (an “Option”), as provided below, under the Symmetry Medical Inc. 2003 Stock Option Plan (the “Plan”), a copy of which is attached hereto and incorporated herein by reference.

  
 1. Definitions. For the purposes of this Agreement, the
following terms shall have the meanings set forth below: 
  
 “Agreement” shall mean this stock option agreement. 
  
 “Board” shall mean the Board of Directors of the Company. 
  
 “Cause” shall mean (i) your theft or embezzlement, or attempted theft or embezzlement, of money or property of the Company, your
perpetration or attempted perpetration of fraud, or your participation in a fraud or attempted fraud, on the Company or your unauthorized appropriation of, or your attempt to misappropriate, any tangible or intangible assets or property of the
Company, (ii) any act or acts of disloyalty, misconduct or moral turpitude by you injurious to the interest, property, operations, business or reputation of the Company or your conviction of a crime the commission of which results in injury to the
Company or (iii) your failure or inability (other than by reason of your Disability) to carry out effectively your duties and obligations to the Company or to participate effectively and actively in the management of the Company, as determined in
the reasonable judgment of the Board. 
  
 “Code”
shall mean the Internal Revenue Code of 1986, as amended, and any successor statute. 
  
 “Committee” shall mean the Stock Option Committee, or such other committee of the Board which may be designated by the Board to administer the Plan. The Committee shall be composed of two or more
directors as appointed from time to time to serve by the Board. 
  
 “Common Stock” shall mean the Company’s Common Stock, par value $.01 per share, or, in the event that the outstanding Common Stock is hereafter changed into or exchanged for different stock or securities of the
Company, such other stock or securities. 
  

 “Company” shall mean Symmetry Medical Inc., a Delaware corporation, and (except to the
extent the context requires otherwise) any subsidiary corporation of Symmetry Medical Inc. as such term is defined in Section 424(f) of the Code. 
  
 “Disability” shall mean your inability, due to illness, accident, injury, physical or mental incapacity or other disability, to carry out
effectively your duties and obligations to the Company or to participate effectively and actively in the management of the Company for a period of at least 90 consecutive days or for shorter periods aggregating at least 120 days (whether or not
consecutive) during any twelve-month period, as determined in the reasonable judgment of the Board. 
  
 “Fair Market Value” of the Common Stock shall be determined by the Committee or, in the absence of the Committee, by the Board.

  
 “Independent Third Party” means any person
who, immediately prior to the contemplated transaction, does not own directly or indirectly in excess of 5% of the Company’s voting capital stock on a fully-diluted basis (a “5% Owner”), who does not control, is not controlled by or
under common control with any such 5% Owner and who is not the spouse or descendent (by birth or adoption) of any such 5% Owner or a trust for the benefit of such 5% Owner and/or such other persons. 
  
 “Option Shares” shall mean (i) all shares of Common Stock
issued or issuable upon the exercise of the Option and (ii) all shares of Common Stock issued with respect to the Common Stock referred to in clause (i) above by way of stock dividend or stock split or in connection with any conversion, merger,
consolidation or recapitalization or other reorganization affecting the Common Stock. Option Shares shall continue to be Option Shares in the hands of any holder other than you (except for the Company and, to the extent that you are permitted to
transfer Option Shares pursuant to paragraph 15 hereof, purchasers pursuant to a public offering under the Securities Act), and each such transferee thereof shall succeed to the rights and obligations of a holder of Option Shares hereunder.

  
 “Public Sale” means any sale of Option Shares
to the public pursuant to an offering registered under the Securities Act or to the public through a broker, dealer or market maker pursuant to the provisions of Rule 144 adopted under the Securities Act. 
  
 “Sale of the Company” shall mean a sale of all or
substantially all of the Company’s assets determined on a consolidated basis or a sale of all or substantially all of the Company’s outstanding capital stock (whether by merger, recapitalization, consolidation, reorganization, combination
or otherwise) to an Independent Third Party. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended, and any successor statute. 
  
 2. Option. 
  
 (a) Terms. Your Option is for the purchase of up to           shares of Common Stock
(the ‘Option Shares”) at a price per share of $          (the “Exercise Price”), payable upon exercise as set forth in paragraph 2(b) below. Your Option shall
expire at the close of business on 

  

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the tenth anniversary of the date hereof (the “Expiration Date”), subject to earlier expiration as provided in paragraph 3(b) below or upon
termination of your employment as provided in paragraph 5(b) below. Your Option is not intended to be an “incentive stock option” within the meaning of Section 422 of the Code. 
  
 (b) Payment of Option Price. Subject to paragraph 3 below, your Option may be exercised in whole or
in part upon payment of an amount (the “Option Price”) in cash (including check, bank draft or money order) equal to the product of (i) the Exercise Price multiplied by (ii) the number of Option Shares to be acquired. 
  
 3. Exercisability/Vesting. 
  
 (a) Vesting. Your Option may be exercised only to the
extent it has become vested. Your Option shall vest and become exercisable with respect to all of your Option Shares in accordance with the following schedule if the Company’s EBITDA (as defined in Appendix A hereto) meets the applicable Target
Amount (as defined in Appendix A) as of such fiscal year end and if as of each such date you are employed by the Company: 
  

			
	 DATE

	  	CUMULATIVE
PERCENTAGE OF
OPTION
SHARES VESTED

	 Company’s fiscal year ending on or around December 31,         
	  	  25%
		
	 Company’s fiscal year ending on or around December 31,         
	  	  50%
		
	 Company’s fiscal year ending on or around December 31,         
	  	  75%
		
	 Company’s fiscal year ending on or around December 31,         
	  	100%

  
 The number of Option
Shares with respect to which your Option may be exercised shall not increase once you cease to be employed by the Company. 
  
 (b) If any increment of your Option does not become vested on any such fiscal year end of the Company set forth in paragraph 3(a) above as
a result of the Target Amount for the period ended on such fiscal year end not being met, such increment shall become vested on any such subsequent fiscal year end (through the fiscal year ending on or around December 31, 2006) if the Target Amount
for the period ended on such subsequent fiscal year end is met during the period referred to in Appendix A ending on such subsequent fiscal year end and so long as you are employed by the Company on the date which such increment would otherwise
become vested. Notwithstanding the foregoing provisions of this paragraph 3(b), your entire Option shall become fully vested and exercisable on the fiscal year end of the Company ending on or around December 31, 2010, provided that you are employed
by the Company on such date. 
  
 4. Sale of the Company. In
the event of a Sale of the Company, any portion of your Option that was then vested and exercisable shall, in the discretion of the Committee (i) be 

  

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cancelled in consideration for payment to you of an amount equal to the portion of the consideration that would have been payable to you pursuant to the Sale
of the Company if the then vested and exercisable portion of your Option had been fully exercised immediately prior to such transaction, less the aggregate Exercise Price, (ii) if the amount that would have been payable to you pursuant to such
transaction if the Option had been fully exercised immediately prior thereto would be less than the aggregate Exercise Price that would have been payable therefor, cancel the Option for no consideration or payment of any kind, (iii) become fully
vested and exercisable immediately prior to the Sale of the Company (provided that such Option shall terminate if not exercised as of the consummation of the Sale of the Company or other prescribed period of time), and/or (iv) remain outstanding or
be adjusted pursuant to paragraph 12 below. Payment of any amount payable pursuant to the preceding sentence may be made in cash or, in the event that the consideration to be received in a Sale of the Company includes securities or other property,
in cash and/or securities or other property in the Committee’s discretion. 
  
 5. Expiration of Option. 
  
 (a) Normal Expiration. In no event shall any part of your Option be exercisable after the Expiration Date set forth in paragraph 2(a) above. 
  
 (b) Early Expiration Upon Termination of Employment. Any portion of your Option that was not vested
and exercisable on the date your employment with the Company terminated shall expire and be forfeited on such date, and any portion of your Option that was vested and exercisable on the date your employment with the Company terminated shall also
expire and be forfeited; provided that: (i) if you die or become subject to any Disability, the portion of your Option that is vested and exercisable shall expire 180 days from the date of your death or Disability, but in no event after the
Expiration Date, (ii) if you retire (with the approval of the Committee or the Board), the portion of your Option that is vested and exercisable shall expire 90 days from the date of your retirement, but in no event after the Expiration Date, and
(iii) if you are discharged other than for Cause, the portion of your Option that is vested and exercisable shall expire 30 days from the date of your discharge, but in no event after the Expiration Date. 
  
 6. Procedure for Exercise. You may exercise all or any portion of your
Option, to the extent it has vested and is outstanding, at any time and from time to time prior to its expiration, by delivering written notice to the Company (to the attention of the Company’s Secretary) and your written acknowledgment that
you have read and have been afforded an opportunity to ask questions of management of the Company regarding all financial and other information provided to you regarding the Company, together with payment of the Option Price in accordance with the
provisions of paragraph 2(b) above. As a condition to any exercise of your Option, you shall permit the Company to deliver to you all financial and other information regarding the Company it believes necessary to enable you to make an informed
investment decision, and you shall make all customary investment representations which the Company requires. 
  
 7. Securities Laws Restrictions and Other Restrictions on Transfer of Option Shares. You represent that when you exercise your Option you shall be
purchasing Option Shares for your own account and not on behalf of others. You understand and acknowledge that 

  

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federal and state securities laws govern and restrict your right to offer, sell or otherwise dispose of any Option Shares unless your offer, sale or other
disposition thereof is registered under the Securities Act and state securities laws, or in the opinion of the Company’s counsel, such offer, sale or other disposition is exempt from registration or qualification thereunder. You agree that you
shall not offer, sell or otherwise dispose of any Option Shares in any manner which would: (i) require the Company to file any registration statement with the Securities and Exchange Commission (or any similar filing under state law) or to amend or
supplement any such filing or (ii) violate or cause the Company to violate the Securities Act, the rules and regulations promulgated thereunder or any other state or federal law. You further understand that the certificates for any Option Shares you
purchase shall bear such legends as the Company deems necessary or desirable in connection with the Securities Act or other rules, regulations or laws. 
  
 8. Non-Transferability of Option. Your Option is personal to you and is not transferable by you other than by will or the laws of descent and
distribution. During your lifetime only you (or your guardian or legal representative) may exercise your Option. In the event of your death, your Option may be exercised only (i) by the executor or administrator of your estate or the person or
persons to whom your rights under the Option shall pass by will or the laws of descent and distribution and (ii) to the extent that you were entitled hereunder at the date of your death. 
  
 9. Conformity with Plan. Your Option is intended to conform in all respects with, and is subject to all applicable
terms, conditions and provisions of, the Plan (which is incorporated in its entirety herein by reference). Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan. By executing and returning the
enclosed copy of this Agreement, you acknowledge your receipt of this Agreement and the Plan and agree to be bound by all of the terms of this Agreement and the Plan. 
  
 10. Rights of Participants. Nothing in this Agreement shall interfere with or limit in any way the right of the
Company to terminate your employment at any time (with or without Cause), nor confer upon you any right to continue in the employ of the Company for any period of time or to continue your present (or any other) rate of compensation, and in the event
of your termination of employment (including, but not limited to, termination by the Company without Cause) any portion of your Option that was not previously vested and exercisable shall be forfeited. Nothing in this Agreement shall confer upon you
any right to be selected again as a Plan participant or to be selected as a participant or beneficiary of any other Company plan or program, and nothing in the Plan or this Agreement shall provide for any adjustment to the number of Option Shares
subject to your Option upon the occurrence of subsequent events except as provided in paragraph 12 below. 
  
 11. Withholding of Taxes. The Company shall be entitled, if necessary or desirable, to withhold from you from any amounts due and payable by the
Company to you (or secure payment from you in lieu of withholding) the amount of any withholding or other tax due from the Company with respect to any Option Shares issuable under the Plan, and the Company may defer such issuance unless indemnified
by you to its satisfaction. 
  
 12. Adjustments. In the
event of a reorganization, recapitalization, stock dividend or stock split, or combination or other change in the shares of Common Stock, the Board or the 

  

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Committee may, in order to prevent the dilution or enlargement of rights under your Option, make such adjustments in the number and type of shares authorized
by the Plan, the number and type of shares covered by your Option and the Exercise Price specified herein, in each case as may be determined by the Board or the Committee to be appropriate and equitable. 
  
 13. Right to Purchase Option Shares Upon Your Termination of
Employment. 
  
 (a) Repurchase of Option
Shares. If your employment with the Company shall terminate, including upon your death, Disability, resignation or termination with or without Cause (the date on which such termination occurs being referred to as the “Termination
Date”), then the Company shall have the option to repurchase all or any part of the Option Shares issued or issuable upon exercise of your Option, whether held by you or by one or more of your transferees, at the price determined in
accordance with the provisions of paragraph 14 hereof (the “Repurchase Option”). 
  
 (b) Repurchase by Company. The Company may elect to purchase all or any portion of the Option Shares by delivery of written notice
(the “Repurchase Notice”) to you or any other holders of the Option Shares within 120 days after the Termination Date. The Repurchase Notice shall set forth the number of Option Shares to be acquired from you and such other
holder(s), the aggregate consideration to be paid for such shares and the time and place for the closing of the transaction. The number of Option Shares to be repurchased by the Company shall first be satisfied to the extent possible from the Option
Shares held by you at the time of delivery of the Repurchase Notice. If the number of Option Shares then held by you is less than the total number of Option Shares the Company has elected to purchase, then the Company shall purchase the remaining
shares elected to be purchased from the other holders thereof, pro rata according to the number of shares held by each such holder at the time of delivery of such Repurchase Notice (determined as close as practical to the nearest whole shares).

  
 (c) Closing of Repurchase of Option
Shares. The purchase of Option Shares pursuant to this paragraph 13 shall be closed at the Company’s executive offices within 20 days after the expiration of the 120-day period referred to in paragraph 13 (b). At the closing, the Company
shall pay the purchase price in the manner specified in paragraph 14(b) and you and any other holders of Option Shares being purchased shall deliver the certificate or certificates representing such shares to the Company or its nominees, accompanied
by duly executed stock powers. The Company shall be entitled to receive customary representations and warranties from you and any other selling holders of Option Shares regarding the sale of such shares (including representations and warranties
regarding good title to such shares, free and clear of any liens or encumbrances) and to require all sellers’ signatures to be guaranteed by a national bank or reputable securities broker. 
  
 14. Purchase Price for Option Shares. 
  
 (a) Purchase Price. The purchase price per share to
be paid for the Option Shares purchased by the Company pursuant to paragraph 13 shall be equal to the Fair Market Value of such Option Shares as of the Termination Date. 
  

 6 

 (b) Manner of Payment. If the Company purchases all or any portion of the Option
Shares, including Option Shares held by one or more of your transferees, the Company shall pay for such shares: (i) first, by certified check or wire transfer of funds to the extent such payment would not cause the Company to violate the General
Corporation Law of the State of Delaware and would not cause the Company to breach any agreement to which it is a party relating to the indebtedness for borrowed money or other material agreement; and (ii) thereafter, with a subordinated promissory
note of the Company. Such subordinated promissory note shall bear interest at the rate of 6% per annum (which shall be payable annually in cash unless otherwise prohibited), shall have all principal payment due on the fifth anniversary of the date
of issuance and shall be subordinated on terms and conditions satisfactory to the holders of the Company’s indebtedness for borrowed money. In addition, the Company may pay the purchase price for such shares by offsetting amounts outstanding
under any indebtedness or obligations owed by you to the Company. 
  
 15. Restrictions on Transfer. 
  
 (a) Transfer of Option Shares. You shall not sell, pledge or otherwise transfer any interest in any Option Shares except pursuant to a Public Sale or the provisions of paragraph 13 or 17 hereof (“Exempt Transfers”)
and except pursuant to the provisions of this paragraph 15. 
  
 (b) Certain Permitted Transfers. The restrictions contained in this paragraph 15 shall not apply with respect to transfers of Option Shares (i) pursuant to applicable laws of descent and distribution or (ii)
among your family group; provided that the restrictions contained in this paragraph 15 shall continue to be applicable to the Option Shares after any such transfer and the transferees of such Option Shares have agreed in writing to be bound by the
provisions of this Agreement. Your “family group” means your spouse and descendants (whether natural or adopted) and any trust or limited partnership solely for the benefit of you and/or your spouse and/or your descendants. 
  
 (c) Termination of Restrictions. The restrictions set
forth in this paragraph 15 shall continue with respect to each Option Share until the earlier of (i) the date on which such Option Share has been transferred in a Public Sale in compliance with the terms hereof or (ii) the consummation of a Sale of
the Company. 
  
 16. Additional Restrictions on Transfer.

  
 (a) Restrictive Legend. The
certificates representing the Option Shares shall bear the following legend: 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS AND MAY
NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO

  

 7 

 
ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN OPTION AGREEMENT BETWEEN THE COMPANY AND
                           DATED AS OF JULY 29, 2003, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT
THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.” 
  
 (b) Opinion of Counsel. You may not sell, transfer or dispose of any Option Shares (except pursuant to an effective registration statement under the Securities Act) without first delivering to the Company an
opinion of counsel reasonably acceptable in form and substance to the Company that registration under the Securities Act or any applicable state securities law is not required in connection with such transfer. 
  
 (c) Holdback. You agree not to effect any public sale
or distribution of any equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and the 180 days after the effectiveness of any underwritten Demand
Registration or any underwritten Piggyback Registration (as such terms are defined in the Registration Agreement), except as part of such underwritten registration if otherwise permitted. 
  
 17. Sale of the Company. 
  
 (a) Consent to Sale of Company. If the Board and the holders of a majority of the Company’s outstanding capital stock (the
“Approving Holders”) approve a Sale of the Company (the “Approved Sale”), each holder of Option Shares shall participate in such Approved Sale. If the Approved Sale is structured as (i) a merger or consolidation,
each holder of Option Shares will waive any dissenters rights, appraisal rights or similar rights in connection with such merger or consolidation or (ii) sale of stock, each holder of Option Shares shall vote for, consent to, raise no objection
against and agree to sell such holder’s Option Shares and surrender any Options owned by such holder on the terms and conditions approved by the Approving Holders, subject to the provisions of paragraph 17(b). Each holder of Option Shares will
take all necessary or desirable actions in connection with the consummation of the Approved Sale as reasonably requested by the Company. To the extent practical, all costs not paid by the Company shall be paid by the stockholders of the Company on a
pro rata basis. 
  
 (b) Conditions. The
obligations of the holders of Option Shares with respect to an Approved Sale are subject to the satisfaction of the following conditions: (i) each holder of shares of a class of stock will be given the identical consideration with respect to each
share of such class, and, if any holders of the Company’s outstanding capital stock are given an option as to the form and amount of consideration to be received, each holder of Option Shares will be given the same option and (ii) each holder
of then currently exercisable or convertible rights to acquire shares of equity interests in the Company will be given an opportunity to exercise such rights or to convert prior to the consummation of the Approved Sale and participate in such sale
as holders of such equity interests. 
  
 (c)
Purchaser Representative. If the Company or a majority of the holders of the Company’s securities enter into any negotiation or transaction for which Rule 506 under the 

  

 8 

 
Securities Act (or any similar rule then in effect) promulgated by the Securities and Exchange Commission may be available with respect to such negotiation
or transaction (including a merger, consolidation or other reorganization), the holders of Option Shares, if required under the Securities Act, will, at the request of the Company, appoint a purchaser representative (as such term is defined in Rule
501) reasonably acceptable to the Company. If any holder of Option Shares appoints a purchaser representative designated by the Company, the Company will pay the fees of such purchaser representative. 
  
 (d) Termination of Restrictions. The provisions of
this paragraph 17 shall terminate when the Company has sold shares of its Common Stock pursuant to a public offering registered under the Securities Act. 
  
 18. Noncompetition/Nonsolicitation. You acknowledge that in the course of your employment with the Company you will become familiar with the
Company’s trade secrets and with other confidential information concerning the Company and that your services will be of special, unique, and extraordinary value to the Company. Therefore, you agree that: 
  
 (a) Noncompete. During the period while you are
employed by the Company until the termination of your employment and for a period of one year thereafter, you shall not directly or indirectly own any interest in, manage, control, participate in, consult with, render services for or in any manner
engage in any business competing with the businesses of the Company, as such businesses exist or are in process on the Termination Date, within any geographical area in which the Company engages or plans to engage in such businesses. Nothing herein
shall prohibit you from being a passive owner of not more than 2% of the outstanding stock of any class of a corporation which is publicly traded, so long as you have no active participation in the business of such corporation. 
  
 (b) Nonsolicitation. During the period while you are
employed by the Company until the Termination and for a period of two years thereafter, you shall not directly or indirectly through another entity (i) induce or attempt to induce any employee of the Company to leave the employ of the Company, or in
any way interfere with the relationship between the Company and any employee thereof, (ii) hire any person who was an employee of the Company within 180 days prior to the time such employee was hired by you or (iii) induce or attempt to induce any
customer, supplier, licensee, or other business relation of the Company to cease doing business with the Company or in any way interfere with the relationship between any such customer, supplier, licensee, or business relation and the Company.

  
 (c) Enforcement. if, at the time of
enforcement of this paragraph 18, a court holds that the restrictions stated herein are unreasonable under circumstances then existing, then the parties hereto agree that the maximum duration, scope, or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope, or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope, and area permitted by law. Because your services are
unique and because you have access to confidential information, the parties hereto agree that money damages would be an inadequate remedy for any breach of this Agreement. Therefore, in the event a breach or threatened breach of this Agreement, the
Company or its successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific 

  

 9 

 
performance and/or injunctive or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other
security). 
  
 (d) Additional
Acknowledgments. You acknowledge that the provisions of this paragraph 18 are in consideration of: (i) employment with the Company, (ii) the issuance of the Option, and (iii) additional good and valuable consideration as set forth in this
Agreement. In addition, you agree and acknowledge that the restrictions contained in this paragraph 18 do not preclude you from earning a livelihood, nor do they unreasonably impose limitations on your ability to earn a living. In addition, you
agree and acknowledge that the potential harm to the Company of the non-enforcement of this paragraph 18 outweighs any potential harm to you of its enforcement by injunction or otherwise. You acknowledge that you have carefully read this Agreement
and have given careful consideration to the restraints imposed upon you by this Agreement, and are in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary information of the Company now existing
or to be developed in the future. You expressly acknowledge and agree that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period, and geographical area. 
  
 19. Remedies. The parties hereto shall be entitled to enforce their
rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor. The parties hereto acknowledge and agree that money damages would not
be an adequate remedy for any breach of the provisions of this Agreement and that any party hereto may, in its sole discretion, apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief (without
posting bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement. 
  
 20. Amendment. Except as otherwise provided herein, any provision of this Agreement may be amended or waived only with the prior written consent of
you and the Company. 
  
 21. Successors and Assigns. Except
as otherwise expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and permitted assigns of the parties
hereto whether so expressed or not. 
  
 22. Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. 
  
 23. Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall constitute an original, but all of
which taken together shall constitute one and the same Agreement. 
  
 24. Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
  

 10 

 25. Governing Law. The corporate law of the State of Delaware shall govern all questions
concerning the relative rights of the Company and its stockholders. All other questions concerning the construction, validity and interpretation of this Agreement shall be governed by the internal law, and not the law of conflicts, of Illinois.

  
 26. Notices. All notices, demands or other
communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally or mailed by certified or registered mail, return receipt requested
and postage prepaid, to the recipient. Such notices, demands and other communications shall be sent to you and to the Company at the addresses indicated below: 
  

(a) If to the Optionee: 
  
 To the address set forth on the first page of this Agreement. 
  
 (b) If to the Company: 
  
 Symmetry Medical Inc. 
 220 West Market Street

 Warsaw, IN 46580 
 Attention:
President 
  
 or to such other address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party. 
  
 27. Rule 701 Compensation. The Company and you acknowledge and agree that this Agreement has been executed and delivered, and the Option has been granted hereunder, in connection with and as a part of the
compensation and incentive arrangements between the Company and you. The grant of the Option hereunder and any issuance of Option Shares upon exercise of the Option are intended to qualify as an exempt offering under Rule 701 of the Securities Act.

  
 28. Entire Agreement. This Agreement constitutes the
entire understanding between you and the Company, and supersedes all other agreements, whether written or oral, with respect to the subject matter hereof. 
  
 * * * * 
  

 11 

 Please execute the extra copy of this Agreement in the space below and return it to the Company’s
Secretary at its executive offices to confirm your understanding and acceptance of the agreements contained in this Agreement. 
  

			
	 Very truly yours,
 SYMMETRY MEDICAL INC.

		
	By:	 	 
	 	 	

	Name:	 	 
	 	 	

	Title:	 	 President and Officer
 Chief Executive

  

					
	 Enclosures:
	  	1.	  	Extra copy of this Agreement
	 	  	2.	  	Copy of the Plan

  
 The undersigned hereby
acknowledges having read this Agreement and the Plan and hereby agrees to be bound by all provisions set forth herein and in the Plan. 
  
 Dated as of:                      
  

	
	 OPTIONEE:

	
	 
	

	 ———————

  

 SPOUSAL CONSENT 
  

The undersigned spouse of Participant hereby acknowledges that I have read the foregoing Stock Option Agreement and that I understand its contents. I
am aware that the Agreement provides for the repurchase of my spouse’s shares of Common Stock under certain circumstances and imposes other restrictions on the transfer of such Common Stock. I agree that my spouse’s interest in the Common
Stock is subject to this Agreement and any interest I may have in such Common Stock shall be irrevocably bound by this Agreement and further that the my community property interest, if any, shall be similarly bound by this Agreement. 
  
 I am aware that the legal, financial and other matters contained in this
Agreement are complex and I am free to seek advice with respect thereto from independent counsel. I have either sought such advice or determined after carefully reviewing this Agreement that I will waive such right. 
  

	
	
	 
	

	 Spouse Signature

	
	 
	

	 Spouse’s name (please print)

	
	 
	

	 Witness

  

 APPENDIX A 
  
 “Target Amount” shall equal the EBITDA performance goals as set forth below 
  

				
	 	  	EBITDA

	 Fiscal year ended on or around December 31, 2003
	  	$	 
		
	 Two fiscal years ended on or around December 31, 2004
	  	$	 
		
	 Three fiscal years ended on or around December 31, 2005
	  	$	 
		
	 Four fiscal years ended on or around December 31, 2006
	  	$	                    

  
 For purposes hereof,
“EBITDA” shall mean the consolidated earnings of the Company and its subsidiaries before deductions for interest, taxes, depreciation and non-cash amortization. The Committee may adjust EBITDA targets upward for subsequent
asset purchases and downward for asset sales, if any.

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