Document:

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EXHIBIT 10.19

                               [HORIZON AIR LOGO]

December 29, 1996

Mr. George D. Bagley President and Chief Executive Officer
Horizon Air Industries, Inc.

Dear George:

This letter will document the agreement between Horizon Air Industries, Inc. and
you with regard to certain benefits at the time of your transfer from Alaska
Airlines to Horizon Air.

Salaried Retirement Plan Benefits -- You are now 100% vested in the Alaska
Airlines Salaried Retirement Plan and are eligible for retirement benefits based
on your length of service as an employee of Alaska Airlines through October 23,
1995. Benefit calculations upon retirement will be based on length of service at
Alaska Airlines and final five years average salary through the date of transfer
to Horizon only. ERISA laws preclude continued participation by a participant
who transfers to a company that does not offer such a benefit to employees, and
Horizon Air does not offer this or any similar plan to its employees.

In connection with your accepting the position of President and Chief Executive
Officer, Horizon agrees to supplement your retirement benefits from the above
plan with a payment or payments such that the total benefit you eventually
receive will be equivalent to that to which you would have been entitled if the
employees of Horizon participated in the Alaska Airlines Salaried Retirement
Plan. Horizon will continue payroll deduction of the amount which you would have
contributed to Alaska's plan, had you continued as an employee of Alaska
Airlines.

On the earlier of your retirement or severance from Alaska Air Group and all of
its subsidiaries, we will request an actuarial calculation of the amount of this
supplemental benefit. Benefit payments will then be made to you at the same time
and in the same form as payments are made to you from the Alaska Airlines
Salaried Retirement Plan. This agreement does not give you rights to any
particular fund, and your rights hereunder are those of an unsecured creditor.

          P.O. Box 48309 - Seattle, Washington 98148 - (206) 241-6757
<PAGE>

George D. Bagley                                               December 29, 1996
Benefits Agreement                                                        Page 2

Alaska Air Group Officers Supplemental Retirement Plan -- Participation
continues.

Alaskasaver 401(k) Plan -- No further contribution allowable per IRS
regulations. Existing account balances may be left for accumulation of future
investment earnings or may be "rolled over" to Horizon's savings investment
plan.

Horizon Savings Investment 401(k) Plan -- You are eligible to participate as a
Horizon employee, with no waiting period. However, because of the "make-whole"
arrangements described previously in connection with the Alaska Airlines
Salaried Retirement Plan, you will not be eligible to participate in the Horizon
Air Supplemental Savings Plan.

Please sign this letter confirming your agreement with the terms outlined,
retain one of the three originals for your files and return the other two to
Keith Loveless.

/s/ John F. Kelly
John F. Kelly
Chairman, Horizon  Air Industries, Inc.
Chairman, President and Chief Executive Officer, Alaska Air Group, Inc.

Concur:

/s/George D. Bagley
George D. Bagley
President and Chief Executive Officer
Horizon Air Industries, Inc.exv10w1

 

Exhibit 10.1

TRW AUTOMOTIVE HOLDINGS CORP.

2003 STOCK INCENTIVE PLAN

CHIEF EXECUTIVE OFFICER

NON-QUALIFIED STOCK OPTION AGREEMENT

     THIS
AGREEMENT, is made effective as of [ ], 200[ ]
(the “Date of
Grant”), between TRW Automotive Holdings Corp. (the
“Company”) and [
](the “Participant”).

R E C I T A L S:

     WHEREAS, the Company has adopted the Plan (as defined below), the terms of which are hereby
incorporated by reference and made a part of this Agreement; and

     WHEREAS, the Compensation Committee of the Board of Directors of the Company has determined
that the Participant be granted the Options provided for herein pursuant to the Plan and the terms
set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

     1.      Definitions. Whenever the following terms are used in this Agreement, they shall
have the meanings set forth below. Capitalized terms not otherwise defined herein shall have the
same meanings as in the Plan.

     (a)      “Cause” means, “Cause” as defined in the Closing Date Employment Agreement or, if
not defined therein or if there is no such agreement, “Cause” means (i) such Participant’s
continued failure substantially to perform such Participant’s duties (other than as a result of
total or partial incapacity due to physical or mental illness) for a period of 10 days following
written notice by the Company or any of its Subsidiaries or Affiliates to the Participant of such
failure, (ii) dishonesty in the performance of the Participant’s duties, (iii) such Participant’s
conviction of, or plea of nolo contendere to, a crime constituting (A) a felony under the laws of
the United States or any state thereof or (B) a misdemeanor involving moral turpitude, (iv) such
Participant’s willful malfeasance or willful misconduct in connection with such Participant’s
duties or any act or omission which is injurious to the financial condition or business reputation
of the Company or any of its Subsidiaries or Affiliates or (v) such Participant’s breach of any
non-competition, non-solicitation or confidentiality provisions to which the Participant is
subject.

     (b)      “Closing Date” means February 28, 2003.

     (c)      “Closing Date Employment Agreement” means a written employment agreement between
the Company or any of its Subsidiaries and the Participant which is or was entered into as of or
after the Closing Date (as the same may be amended, modified or supplemented in accordance with the
terms thereof).

 

 

     (d)      “Disability” means, “disability” as defined in the Closing Date Employment
Agreement or, if not defined therein or if there shall be no such agreement, “disability” of the
Participant shall have the meaning ascribed to such term in the Company’s long-term disability plan
or policy, as in effect from time to time.

     (e)      “Expiration Date” means the eighth anniversary of the Date of Grant.

     (f)      “Option” means the option granted herewith.

     (g)      “Plan” means the TRW Automotive Holdings Corp. 2003 Stock Incentive Plan, as the
same may be amended, supplemented or modified from time to time.

     (h)      “Retirement” means satisfaction of the requirements for early or normal retirement
under a defined benefit pension plan maintained by the Company or one or more members of the
Company’s controlled group of corporations (as defined by Section 1563 of the Internal Revenue
Code) and receipt of pension benefits in accordance with such requirements as soon as
administratively practicable following the last date of active employment with the Company or its
controlled group of corporations.

     (i)      “Vested Portion” means, at any time, the portion of an Option which has become
vested, as described in Section 3 of this Agreement.

     2.      Grant of Options. The Company hereby grants to the Participant the right and
option to purchase, on the terms and conditions hereinafter set forth, [ ] Shares,
subject to adjustment as set forth in the Plan. The purchase price of the Shares subject to the
Option (the “Option Price”) shall be $[ ], which is the Fair Market Value of the
Shares on the Date of Grant. The Option is intended to be a non-qualified stock option, and is not
intended to be treated as an option that complies with Section 422 of the Internal Revenue Code of
1986, as amended.

     3.      Vesting of the Options.

     (a)      In General. Subject to Sections 3(b) and 3(c), the Option shall vest and become
exercisable with respect to one-third of the Shares subject to the Option on the first anniversary
of the Date of Grant and shall vest and become exercisable with respect to an additional one-third
of the Shares subject to the Option on each subsequent anniversary of the Date of Grant, until such
Shares subject to the Option are 100% vested.

     (b)      Change of Control. Notwithstanding the foregoing, upon a Change of Control, the
unvested portion of the Option, to the extent not previously cancelled or forfeited, shall
immediately become vested and exercisable.

     (c)      Termination of Employment. If the Participant’s employment with the Company and
its Affiliates terminates for any reason, the Option, to the extent not then vested, shall be
immediately canceled by the Company without consideration; provided, however, that
if the Participant’s employment is terminated (i) due to the Participant’s death or Disability, the
unvested portion of the Option shall become vested and exercisable with respect to the number of
Shares that otherwise would have become vested and exercisable on the next scheduled

 

 

vesting date following such termination and (ii) by the Company or its Affiliates without
Cause or by the Participant for Good Reason, the unvested portion of the Option, to the extent not
previously cancelled or forfeited, shall immediately become vested and exercisable. The Vested
Portion of the Option shall remain exercisable for the period set forth in Section 4(a) of this
Agreement.

     4.      Exercise of Options.

     (a)      Period of Exercise. Subject to the provisions of the Plan and this Agreement, the
Participant may exercise all or any part of the Vested Portion of an Option at any time prior to
the Expiration Date. Notwithstanding the foregoing, if the Participant’s employment terminates
prior to the Expiration Date, the Vested Portion of an Option shall remain exercisable for the
period set forth below:

     (i)      Death or Disability. If the Participant’s employment with the Company and
its Affiliates terminates due to the Participant’s death or Disability, the Participant (or,
in the case of death, the Participant’s estate or those designated by will or the laws of
descent and distribution) may exercise the Vested Portion of an Option for a period ending on
the earlier of (A) two years following the date of death and (B) the Expiration Date;

     (ii)      Termination other than for Cause. If the Participant’s employment with the
Company and its Affiliates is terminated for any reason other than by the Company or its
Affiliates for Cause or due to the Participant’s death, Disability or Retirement, the
Participant may exercise the Vested Portion of an Option for a period ending on the earlier
of (A) 90 days following the date of such termination and (B) the Expiration Date;

     (iii)      Termination for Retirement. If the Participant’s employment with the
Company terminates due to Retirement, the Vested Portion of an Option shall remain
exercisable until the Expiration Date; and

     (iv)      Termination for by the Company for Cause. If the Participant’s employment
with the Company and its Affiliates is terminated by the Company for Cause, the Vested
Portion of an Option shall terminate in full and cease to be exercisable.

     (b) Method of Exercise.

     (i)      Subject to Section 4(a) of this Agreement, the Vested Portion of an Option may be
exercised by delivering to the Company at its principal office written notice of intent to so
exercise; provided that the Option may be exercised with respect to whole Shares
only. Such notice shall specify the number of Shares for which the Option is being exercised
and shall be accompanied by payment in full of the aggregate Option Price. Payment of the
aggregate Option Price may be made (A) in cash, or its equivalent, (B) to the extent
permitted by the Committee, by transferring Shares having a Fair Market Value equal to the
aggregate Option Price for the Shares being purchased to the Company and satisfying such
other requirements as may be imposed by the Committee; provided that such Shares have
been held by the Participant for no less than six months (or such other

 

 

period as established from time to time by the Committee or generally accepted
accounting principles), (C) if there is a public market for the Shares at such time, subject
to such rules as may be established by the Committee, through delivery of irrevocable
instructions to a broker to sell the Shares otherwise deliverable upon the exercise of the
Option and to deliver promptly to the Company an amount equal to the aggregate Option Price,
or (D) such other method as approved by the Committee. No Participant shall have any rights
to dividends or other rights of a stockholder with respect to the Shares subject to an Option
until the Participant has given written notice of exercise of the Option, paid in full for
such Shares and, if applicable, has satisfied any other conditions imposed by the Committee
pursuant to the Plan.

     (ii)      Upon the Company’s determination that an Option has been validly exercised as to
any of the Shares, the Company shall issue certificates in the Participant’s name for such
Shares. However, the Company shall not be liable to the Participant for damages relating to
any delays in issuing the certificates to the Participant, any loss by the Participant of the
certificates, or any mistakes or errors in the issuance of the certificates or in the
certificates themselves.

     (iii)      In the event of the Participant’s death, the Vested Portion of an Option shall
remain vested and exercisable by the Participant’s executor or administrator, or the person
or persons to whom the Participant’s rights under this Agreement shall pass by will or by the
laws of descent and distribution as the case may be, to the extent set forth in Section 4(a)
of this Agreement. Any heir or legatee of the Participant shall take rights herein granted
subject to the terms and conditions hereof.

     5.      No Right to Continued Employment. Neither the Plan nor this Agreement shall be
construed as giving the Participant the right to be retained in the employ of, or in any consulting
relationship to, the Company or any Affiliate. Further, the Company or its Affiliate may at any
time dismiss the Participant or discontinue any consulting relationship, free from any liability or
any claim under the Plan or this Agreement, except as otherwise expressly provided herein.

     6.      Transferability. Unless otherwise determined by the Committee, an Option may not
be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the
Participant otherwise than by will or by the laws of descent and distribution, and any such
purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void
and unenforceable against the Company or any Affiliate; provided that the designation of a
beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or
encumbrance. During the Participant’s lifetime, an Option is exercisable only by the Participant.

     7.      Withholding. The Participant may be required to pay to the Company or its
Affiliate and the Company or its Affiliate shall have the right and is hereby authorized to
withhold from any payment due or transfer made under the Option or under the Plan or from any
compensation or other amount owing to a Participant the amount (in cash, Shares, other

 

 

securities, other Awards or other property) of any applicable withholding taxes in respect of
the Option, its exercise, or any payment or transfer under the Option or under the Plan and to take
such action as may be necessary in the option of the Company to satisfy all obligations for the
payment of such taxes.

     8.      Notices. Any notice under this Agreement shall be addressed to the Company in care
of its General Counsel at the principal executive office of the Company and to the Participant at
the address appearing in the personnel records of the Company for the Participant or to either
party at such other address as either party hereto may hereafter designate in writing to the other.
Any such notice shall be deemed effective upon receipt thereof by the addressee.

     9.      Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflicts of laws.

     10.      Options Subject to Plan. By entering into this Agreement the Participant agrees
and acknowledges that the Participant has received and read a copy of the Plan. The Options and
the Shares received upon exercise of the Options are subject to the Plan. The terms and provisions
of the Plan as it may be amended from time to time are hereby incorporated by reference. In the
event of a conflict between any term or provision contained herein and a term or provision of the
Plan, the applicable terms and provisions of the Plan will govern and prevail.

     11.      Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Any counterpart or other signature hereupon delivered by
facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of
this Agreement by such party.

     IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

	 	 	 	 	 
	 	 	TRW AUTOMOTIVE HOLDINGS CORP.
	 
	 	 	 	 
	

	 	By
	 	_______________________________
	

	 	 	 	Its _____________________________
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	_____________________________________

Participant:

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