Document:

exv10w19

 

Exhibit 10.19

STOCK OPTION AGREEMENT

FOR ____________

     THIS STOCK OPTION AGREEMENT (this “Agreement”) is made as of                    , by
and between The Allied Defense Group, Inc., a Delaware corporation (“Allied”),
and                     (the “Employee”).

WITNESSETH:

     WHEREAS, the Employee is an employee of Allied and Allied desires to have
the Employee remain in its service and desires to encourage stock ownership by
the Employee and to increase the Employee’s proprietary interest in Allied’s
success; and as an inducement thereto has determined to grant to the Employee
the stock option herein provided for to the end that the Employee may thereby
be assisted in obtaining an interest, or an increased interest, as the case may
be, in the stock ownership of Allied;

     NOW, THEREFORE, in consideration of the covenants and agreements herein
contained, the parties hereto hereby agree as follows:

     1. Grant. Pursuant to a resolution adopted by the Compensation
Committee of the Board of Directors of Allied, Allied hereby grants to the
Employee an option (the “Option”) to purchase  
                  shares of the Common Stock,
$0.10 par value per share, of Allied (the “Common Stock”) at $                     per share.

     2. Term. The Option is exercisable from time to time during the
period beginning on the date hereof through 4:00 p.m. (Vienna, Virginia, United
States, time) on                    , in installments as set forth below.

     3. Required Employment Period.

	3.1.	 	Provided that the Employee has remained in the
continuous employment of Allied through the particular
exercise date, the Option shall become exercisable in
installments, the Optionee having the right hereunder to
purchase from Allied the following number of shares upon
exercise of the Option, on and after the following dates, in
cumulative fashion:
	 
	 	 	3.1.1. on and after                    , up to                     shares; and
	 
	 	 	3.1.2. on and after                    , up to an additional                     shares;
	 
	 	 	3.1.3. on and after                    , up to an additional                     shares;
	 
	 	 	3.1.4. on and after                    , up to an additional                     shares; and
	 
	 	 	3.1.5. on and after                    , up to an additional                     shares.

 

 

	3.2.	 	For the purposes of the Option, employment by any
parent corporation or subsidiary corporation of Allied shall
be considered employment by Allied. Neither the granting of
nor any provision contained in the Option shall obligate
Allied to continue the employment of the Employee or in any
manner restrict or affect the right of Allied to terminate the
employment of the Employee at any time for any reason, with or
without cause.
	 
	3.3.	 	Notwithstanding the provisions of Section 3.1
above, upon a “Change of Control” as defined in your letter
agreement dated as of                    , the Option shall become
immediately exercisable with respect to all previously
unexercised shares of Common Stock covered by the Option.

     4. Termination of Option.

	4.1.	 	The Option, to the extent not previously
exercised, shall terminate upon the expiration of three (3)
months after the termination of the employee’s employment with
Allied, notwithstanding the reason for such termination of
employment. In such event, the Option, to the extent
unexercised, shall terminate, be forfeited and shall lapse.
	 
	4.2.	 	If the Employee dies while he is an employee of
Allied or ceases to be an employee as a result of disability,
the Option may be exercised by the disabled Employee, or by
the person or persons to whom his rights under the Option
shall pass by will or by the applicable laws of descent and
distribution; provided, however, that no such Option may be
exercised after one (1) year from the Employee’s date of death
or the date the Employee ceases to be an employee as a result
of disability, whichever is applicable. Upon expiration of
said period, the Option, to the extent unexercised, shall
terminate, be forfeited and shall lapse.

     5. Method of Exercise of Option. The Option may be exercised by
written notice directed to the Treasurer of Allied, at Allied’s principal place
of business, specifying the number of shares of Common Stock with respect to
which the Option is being exercised. The notice must be accompanied by payment
of the full purchase price in cash or other consideration acceptable to the
Board of Directors.

     6. Requirements of Law. Allied shall not be required to sell or
issue any shares of Common Stock under the Option if the issuance of such
shares shall constitute a violation of any provisions of any law or regulation
of any governmental authority.

     7. Transferability and Sale. Except as permitted by the 2001 Equity
Incentive Plan, as amended (the “Plan”), the Option may not be transferred or
assigned in any manner by the Employee, except to his heirs or devisees, and
shall be exercisable during his
lifetime only by the Employee. Upon any attempt to transfer the Option or
to assign, pledge, hypothecate or otherwise dispose of the Option or of any
rights granted hereunder, contrary to the provisions

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hereof, or upon the levy
or any attachment or similar process upon the Option or such rights, the Option
and such rights shall immediately become null and void.

     8. No Rights as Stockholder. The Employee shall have no rights as a
stockholder with respect to shares covered by the Option until the date of
issuance of a stock certificate for such shares; no adjustment for dividends or
otherwise shall be made if the record date therefor is prior to the date of
exercise of such Option.

     9. Status of Option.

	9.1.	 	The Option is issued pursuant to the Plan.
	 
	9.2.	 	The Option is intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and
shall be so construed to the extent of        
            shares first
exercisable as of each of                    ; provided, however, that
nothing herein shall be deemed to be or interpreted as a
representation, guarantee or other undertaking on the part of
Allied that this Option is or will be determined to be in
incentive stock option within the meaning of Section 422 of
the Code. The balance of the Option (i.e., to the extent of
                 
  shares first exercisable as of each                    ) shall be a
non-statutory stock option.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

	 	 	 	 	 	 	 
	 	 	THE ALLIED DEFENSE GROUP, INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
	 	 

     I hereby accept the foregoing Option and agree to all the terms and
conditions set forth in the foregoing Agreement.

	 	 	 
	

	 	

Allied/Stock Option Agreement (Employee Form)

3exv10w20

 

Exhibit 10.20

DIRECTOR’S STOCK OPTION AGREEMENT 

     THIS DIRECTOR’S STOCK OPTION AGREEMENT (this “Agreement”) is made as of
                   , by and between The Allied Defense Group, Inc., a Delaware
corporation (“Allied”), and                    , a non-employee member of Allied’s Board
of Directors (the “Director”).

WITNESSETH:

     WHEREAS, the Director is now a member of Allied’s Board of Directors and
Allied desires to have the Director remain in its service and desires to
encourage stock ownership by the Director and to increase the Director’s
proprietary interest in Allied’s success; and as an inducement thereto has
determined to grant to the Director the option herein provided for, pursuant to
Allied’s 2001 Equity Incentive Plan, as amended (the “Plan”), to the end that
the Director may thereby be assisted in obtaining an interest, or an increased
interest, as the case may be, in the stock ownership of Allied;

     NOW, THEREFORE, in consideration of the covenants and agreements herein
contained, the parties hereto hereby agree as follows:

     1. Grant.  Pursuant to a resolution adopted by the Board of
Directors of Allied, Allied hereby grants to the Director an option (the
“Option”) to purchase                     shares of the Common Stock, $0.10 par value per
share, of Allied (the “Common Stock”) at $                    per share.

     2. Term.  The Option is exercisable in whole or in part from time to
time during the period beginning on the date hereof through 4:00 p.m. (Vienna,
Virginia, United States, time) on                    , except as provided in Paragraph 6
hereof.

     3. Method of Exercise of Option.  This Option may be exercised by
written notice directed to the Treasurer of Allied, at Allied’s principal place
of business, specifying the number of shares of Common Stock with respect to
which the Option is being exercised. The notice must be accompanied by payment
of the full purchase price in cash or other consideration acceptable to the
Board of Directors as permitted by the Plan. Except as provided in Paragraph 6
hereof, the Director may exercise the Option only if, at the time such Option
is exercised, the Director is a member of the Board of Directors of, and has
continuously since the grant of the Option, been a member of the Board of
Directors of, Allied.

     4. Requirements of Law.  Allied shall not be required to sell or
issue any shares under the Option if the issuance of such shares shall
constitute a violation of any provisions of any law or regulation of any
governmental authority.

     5. Transferability and Sale.  The Option may not be transferred or
assigned in any manner by the Director, except to his heirs or devisees, and
shall be exercisable during his lifetime only by the Director. Upon any
attempt to transfer the Option or to assign, pledge, hypothecate or otherwise
dispose of the Option or of any rights granted hereunder,
contrary to the provisions hereof, or upon the levy or any attachment or
similar process upon the Option or such rights, the Option and such rights
shall immediately become null and void.

 

 

     6. Termination of Service and Death.

          (a) If the Director ceases to be a member of the Board of Directors of
Allied for any reason other than (i) his death or disability; or (ii) his
discharge for dishonesty or commission of a crime, the Director may within
three (3) months thereafter exercise the Option as of the date the Director
ceases to be a director. All unexercised Options, or portions thereof, shall
terminate, be forfeited, and shall lapse upon the expiration of said three (3)
month period or immediately after the Director ceases to be a director of
Allied for any of the reasons set forth in (ii) above.

          (b) If the Director dies while he is a member of the Board of Directors of
Allied or ceases to be a director as a result of disability, the Option may be
exercised by the disabled Director, or by the person or persons to whom his
rights under the Option shall pass by will or by the applicable laws of descent
and distribution; provided, however, that no such Option may be exercised
after one hundred and eighty (180) days from the Director’s date of death or
the date the Director ceases to be a director as a result of disability,
whichever is applicable. Upon expiration of said period, the Option, to the
extent unexercised, shall terminate, be forfeited and shall lapse.

     7. No Rights as Stockholder.  The Director shall have no rights as a
stockholder with respect to shares covered by the Option until the date of
issuance of a stock certificate for such shares; no adjustment for dividends,
or otherwise, except as provided in Paragraph 8, shall be made if the record
date therefor is prior to the date of exercise of such Option.

     8. Changes in Allied’s Capital Structure.  The existence of the
Option shall not affect in any way the right or power of Allied or its
stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in Allied’s capital structure, or any merger
or consolidation of Allied, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock or the rights
thereof, or the dissolution or liquidation of Allied, or any sale or transfer
of all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise. In the event that the
outstanding shares of Common Stock are changed into or exchanged for a
different number or kind of shares or other securities of Allied or of another
corporation, by reason of reorganization, merger, consolidation,
recapitalization, reclassification, stock split-up, combination of shares, or
dividend payable in corporate shares, appropriate adjustment shall be made by
the Board of Directors, in its sole discretion, in the number and kind of
shares of Common Stock as to which this Option, or any portion of this Option
then unexercised, shall be exercisable, to the end that the Director’s
proportionate interest shall be maintained as before the occurrence of such
event.

     9. Status of Option.  It is understood and agreed that the Option is
a non-statutory option for U.S. Federal income tax purposes.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

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	 	 	THE ALLIED DEFENSE GROUP, INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
	 	 

     I hereby accept the foregoing Option and agree to all the terms and
conditions set forth in the foregoing Agreement.

	 	 	 
	

	 	

Allied/Directors/Director’s Stock Option Agreement (Director Form)

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