Document:

EXHIBIT 10.19

 

 

QUANEX CORPORATION

 

OTHER STOCK-BASED AWARD AGREEMENT

 

<<Full Name>>

Grantee

 

	
  Date of Award:

  	
   

  	
  <<                               >>

  
	
  Number of Shares:

  	
   

  	
  <<                               >>

  

 

AWARD OF STOCK

 

The Compensation
Committee (the “Committee”) of the Board of Directors of Quanex Corporation, a
Delaware corporation (the “Company”),
pursuant to the Quanex Corporation 2006 Omnibus Incentive Plan (the “Plan”), hereby awards to you, the
above-named Grantee, effective as of the Date of Award set forth above, that
number of shares (the “Shares”)
of the Company’s Common Stock, $0.50 par value per share (the “Common Stock”), set forth above. Capitalized
terms that are not defined herein shall have the meaning ascribed to such terms
in the Plan.

 

The Shares that are
awarded hereby to you are not subject to any forfeiture restrictions.

 

To the extent that the
receipt of the Shares of Restricted Stock results in income, wages or other
compensation to you for any income, employment or other tax purposes with
respect to which the Company has a withholding obligation, you shall deliver to
the Company at the time of such receipt or lapse, as the case may be, such
amount of money as the Company may require to meet its obligation under
applicable tax laws or regulations, and, if you fail to do so, the Company is
authorized to withhold from the Shares awarded hereby or from any cash or stock
remuneration or other payment then or thereafter payable to you any tax
required to be withheld by reason of such taxable income, wages or compensation
sufficient to satisfy the withholding obligation based on the last per share
sales price of the Common Stock for the trading day immediately preceding the
date that the withholding obligation arises, as reported in the New York Stock
Exchange Composite Transactions.

 

The Shares awarded hereby
may not be sold or otherwise disposed of in any manner that would constitute a
violation of any applicable federal or state securities laws. You also agree
that (a) the Company may refuse to cause the transfer of the Shares to be
registered on the stock register of the Company if such proposed transfer would
in the opinion of counsel satisfactory to the Company constitute a violation of
any applicable federal or state securities law and (b) the Company may
give related instructions to the transfer agent, if any, to stop registration
of the transfer of the Shares.

 

The Company shall cause the
Shares to be issued to you, and such Shares shall be transferable by you
(except to the extent that any proposed transfer would, in the opinion of
counsel satisfactory to the Company, constitute a violation of applicable
federal or state securities law). The Shares are registered with the Securities
and Exchange Commission under a Registration Statement on Form S-8.

 

In accepting the award of
Shares set forth in this Agreement you accept and agree to be bound by all the
terms and conditions of the Plan and this Agreement.

 

	
   

  	
  QUANEX
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond Jean – Chief Executive
  Officer

  

 

Executive/EmployeeEXHIBIT 10.20

 

 

QUANEX CORPORATION

 

OTHER STOCK-BASED AWARD AGREEMENT

 

<<Full Name>>

Grantee

 

	
  Date of Award:

  	
   

  	
  <<                               >>

  
	
  Number of Shares:

  	
   

  	
  <<                               >>

  

 

AWARD OF STOCK

 

Quanex Corporation, a
Delaware corporation (the “Company”),
pursuant to the Quanex Corporation 2006 Omnibus Incentive Plan (the “Plan”), hereby awards to you, the
above-named Grantee, effective as of the Date of Award set forth above, that
number of shares (the “Shares”)
of the Company’s Common Stock, $0.50 par value per share (the “Common Stock”), set forth above.

 

The Shares that are
awarded hereby to you are not subject to any forfeiture restrictions.

 

The Shares awarded hereby
may not be sold or otherwise disposed of in any manner that would constitute a
violation of any applicable federal or state securities laws. You also agree
that (a) the Company may refuse to cause the transfer of the Shares to be
registered on the stock register of the Company if such proposed transfer would
in the opinion of counsel satisfactory to the Company constitute a violation of
any applicable federal or state securities law and (b) the Company may
give related instructions to the transfer agent, if any, to stop registration
of the transfer of the Shares.

 

The Company shall cause the
Shares to be issued to you, and such Shares shall be transferable by you
(except to the extent that any proposed transfer would, in the opinion of
counsel satisfactory to the Company, constitute a violation of applicable
federal or state securities law).

 

The Shares are registered
with the Securities and Exchange Commission under a Registration Statement on
Form S-8.

 

Capitalized terms that
are not defined herein shall have the meaning ascribed to such terms in the
Plan.

 

In accepting the award of
Shares set forth in this Agreement you accept and agree to be bound by all the
terms and conditions of the Plan and this Agreement.

 

	
   

  	
  QUANEX
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond Jean – Chief Executive
  Officer

  

 

Non-Employee DirectorEXHIBIT 10.21

 

 

QUANEX CORPORATION

 

ANNUAL INCENTIVE AWARD AGREEMENT

 

<<Full Name>>

Grantee

 

	
  Date of Award:

  	
   

  	
  <<                 ,
  20     >>

  
	
  Individual Incentive Target:

  	
   

  	
  <<                            >>

  

 

ANNUAL INCENTIVE AWARD

 

1.                                      GRANT
OF ANNUAL INCENTIVE AWARD. The Compensation Committee
(the “Committee”) of the Board of
Directors of Quanex Corporation, a Delaware corporation (the “Company”), pursuant to the Quanex
Corporation 2006 Omnibus Incentive Plan (the “Plan”),
hereby awards to you, the above-named Grantee, effective as of the Date of
Award set forth above, an Annual Incentive Award under the Plan on the terms
and conditions set forth in this Annual Incentive Award Agreement (this “Agreement”).

 

Under
this Annual Incentive Award you have an opportunity to earn an incentive cash
payment based upon the achievement of the Performance Goals assigned to you by
the Committee for the one-year period beginning November 1, 20     ,
and ending October 31, 20      (the “Performance Period”), as compared with the
Threshold Performance Goals, Target Performance Goals and Maximum Performance
Goals established for you by the Committee for the Performance Period.

 

2.                                      ACHIEVED
INDIVIDUAL INCENTIVE. The aggregate amount payable
to you under this Agreement as your Annual Incentive Award for the Performance
Period is equal to your Achieved Individual Incentive for the Performance
Period multiplied by your Salary for the Performance Period. The term “Achieved Individual Incentive” means the
amount determined as provided below:

 

2.1           If (a) the
Target Performance Goals are achieved for the Performance Period (but the
Maximum Performance Goals are not achieved for the Performance Period) and
(b) you remain in the active employ of the Company Group through the last
day of the Performance Period (except as otherwise provided in this Agreement),
then the Achieved Individual Incentive shall be equal to the Individual
Incentive Target set forth above.

 

2.2           If (a) the
Maximum Performance Goals are achieved for the Performance Period and
(b) you remain in the active employ of the Company Group through the last
day of the Performance Period (except as otherwise provided in this Agreement),
then the Achieved Individual Incentive shall be equal to the Individual
Incentive Target set forth above multiplied by two.

 

2.3           If (a) the
Threshold Performance Goals are achieved for the Performance Period (but the
Target Performance Goals are not achieved for the Performance Period) and
(b) you remain in the active employ of the Company Group through the last
day of the Performance Period (except as otherwise provided in this Agreement),
then the Achieved Individual Incentive shall be equal to the Individual
Incentive Target set forth above multiplied by
                        .

 

Executive

Annual
Incentive Award

 

 

2.4           If the performance
standard achieved with respect to a particular Performance Goal is between the
Threshold Performance Goal and the Target Performance Goal or between the
Target Performance Goal and the Maximum Performance Goal, the applicable Final
Performance Factor shall be determined by interpolation.

 

For example, assume that
the Committee grants an employee a incentive compensation award under the Plan
that is contingent upon achieving Performance Goal A and Performance Goal B,
weighting the importance of the goals equally as 50% and 50%, respectively. The
Committee establishes Threshold, Target and Maximum Performance Goals for each
Goal. Finally, assume that the employee is awarded an Annual Incentive Award with
a Individual Incentive Target of $100,000, is continuously employed by the
Company throughout the Performance Period and achieves the Maximum Performance
Goal for Performance Goal A, and precisely halfway between the Target and
Maximum Performance Goals for Performance Goal B. The total amount payable
to the employee under the award is $125,000, which is determined as
follows:  .The amount payable to the
employee with respect to Performance Goal A is $50,000 (50% (Performance
Goal Percentage) x $100,000 (Individual Incentive Target x 1 = $50,000), and
the amount payable to the employee with respect to Performance Goal B is $75,000
(50% (Performance Goal Percentage) x $100,000 (Individual Incentive Target x
1.5 = $75,000).

 

2.5           The term “Salary” means the cash amounts paid or
payable by the Company Group to you as regular compensation for services
rendered during the Performance Period (whether or not deferred), exclusive of
bonuses, awards, reimbursement of expenses and fringe benefits.

 

2.6           The Committee may
not increase the amount payable under this Agreement. Notwithstanding any other
provision of this Agreement to the contrary, in its sole discretion, the
Committee may reduce your Individual Incentive Target and reduce the amount of
the Incentive Award payable under the Agreement.

 

2.7           If the Threshold
Performance Goals are not achieved for the Performance Period then the award
pursuant to this Agreement shall lapse and be forfeited as of the last day of
the Performance Period.

 

2.8           The Committee’s
determinations with respect to the Performance Period for purposes of this
Agreement shall be binding upon all persons.

 

3.                                      PAYMENT. Any amount
payable to you pursuant to this Agreement will be paid to you by the Employer
on                            ,
20       (the “Payment
Date”).

 

4.                                      TERMINATION OF EMPLOYMENT. The following
provisions will apply in the event your employment with the Company and all
Affiliates (collectively, the “Company Group”)
terminates on or before the last day of the Performance Period.

 

4.1           Termination
Generally. If your employment with the Company Group terminates on or
before the last day of the Performance Period for any reason other than one of
the reasons described in Sections 4.2 or 4.3 below, all of your rights in
the Agreement, including all rights to the Annual Incentive Award, will lapse
and be completely forfeited on the date your employment terminates.

 

4.2           Permanent
Disability. Notwithstanding any other provision of the Agreement to the
contrary, if your employment with the Company Group terminates because you
incur a Permanent Disability before the last day of the Performance Period then
the legal entity that is a member of the Company Group and that is classified
by the Company Group as your employer

 

2

 

(the “Employer”) will pay
to you in cash an amount equal to the product of (1) and (2) where (1) is the
amount you would have received under the Agreement if your employment with the
Company Group had not been terminated before the end of the Performance Period
and (2) is a fraction, the numerator of which is the number of days from the
beginning of the Performance Period through the date your employment with the
Company Group terminates and the denominator of which is the number of days in
the Performance Period. Any amount payable pursuant to this Section 4.2
will be paid by the Employer to you on the Payment Date listed in the Agreement
(the “Payment Date”). For
purposes of this Section 4.2, you will have a “Permanent
Disability” if you are unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months.

 

4.3           Death. Notwithstanding
any other provision of the Agreement to the contrary, if you die before the
last day of the Performance Period and while in the active employ of one or
more members of the Company Group, then the Employer will pay to your estate in
cash an amount equal to  the product of
(1) and (2) where (1) is the amount you would have received under the Agreement
if your employment with the Company Group had not been terminated before the
end of the Performance Period and (2) is a fraction, the numerator of which is
the number of days from the beginning of the Performance Period through the
date your employment with the Company Group terminates and the denominator of
which is the number of days in the Performance Period. Any amount payable pursuant
to this Section 4.3 will be paid by the Employer to your estate on the
Payment Date.

 

4.4           Retirement. Notwithstanding
any other provision of the Agreement to the contrary, if your employment with
the Company Group terminates due to your Retirement before the last day of the
Performance Period then the Employer will pay to you in cash an amount equal to
the product of (1) and (2) where (1) is the amount you would have received
under the Agreement if your employment with the Company Group had not been
terminated before the end of the Performance Period and (2) is a fraction, the
numerator of which is the number of days from the beginning of the Performance
Period through the date your employment with the Company Group terminates and
the denominator of which is the number of days in the Performance Period. Any
amount payable pursuant to this Section 4.4 will be paid by the Employer
to you on the Payment Date. For purposes of this Section 4.4 “Retirement” means the voluntary
termination of your employment relationship with the Company Group on or after
the date on which (a) you are age 65 or (b) you are age 55 and have
five years of service with the Company Group.

 

4.5           Change in Control. In the
event you have entered into a change in control agreement with the Company (your
“Change in Control Agreement”), your
benefits under this Agreement shall be modified as required under the
provisions of your Change in Control Agreement.

 

5.                                      TAX WITHHOLDING. To the extent that the receipt of the
Agreement or payment pursuant to the Agreement results in income, wages or
other compensation to you for any income, employment or other tax purposes with
respect to which the Employer has a withholding obligation, you shall deliver
to the Employer at the time of such receipt or payment, as the case may be,
such amount of money as the Employer may require to meet its obligation under
applicable tax laws or regulations, and, if you fail to do so, the Employer is
authorized to

 

3

 

withhold from any payment under the Agreement or from any cash or stock
remuneration or other payment then or thereafter payable to you by the Company
Group any tax required to be withheld by reason of such taxable income, wages
or compensation.

 

6.                                      NONTRANSFERABILITY. Your rights
under this Agreement and to any Annual Incentive Award that may be payable to
you under this Agreement may not be sold, assigned, pledged, exchanged,
hypothecated or otherwise transferred, encumbered or disposed of (other than by
will or the applicable laws of descent and distribution). Any such attempted
sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or
disposition in violation of this Agreement shall be void and the Company Group
shall not be bound thereby.

 

7.                                      CAPITAL ADJUSTMENTS AND REORGANIZATIONS. The existence of the Annual Incentive Award shall
not affect in any way the right or power of the Company to make or authorize
any adjustment, recapitalization, reorganization or other change in its capital
structure or its business, engage in any merger or consolidation, issue any
debt or equity securities, dissolve or liquidate, or sell, lease, exchange or
otherwise dispose of all or any part of its assets or business, or engage in
any other corporate act or proceeding.

 

8.                                      EMPLOYMENT RELATIONSHIP. For purposes of
the Agreement, you shall be considered to be in the employment of the Company
Group as long as you have an employment relationship with the Company Group. The
Committee shall determine any questions as to whether and when there has been a
termination of such employment relationship, and the cause of such termination,
under the Plan, and the Committee’s determination shall be final and binding on
all persons.

 

9.                                      NOT AN EMPLOYMENT AGREEMENT. The Agreement is not an employment
agreement, and no provision of the Agreement shall be construed or interpreted
to create an employment relationship between you and the Company or any
Affiliate or guarantee the right to remain employed by the Company or any
Affiliate for any specified term.

 

10.                               LIMIT OF LIABILITY. Under no circumstances
will the Company or an Affiliate be liable for any indirect, incidental,
consequential or special damages (including lost profits) of any form incurred
by any person, whether or not foreseeable and regardless of the form of the act
in which such a claim may be brought, with respect to the Plan.

 

11.                               EMPLOYER LIABLE FOR PAYMENT. The Employer is
liable for the payment of any amounts that become due under the Agreement.

 

12.                               MISCELLANEOUS. The Agreement is awarded pursuant to and is
subject to all of the provisions of the Plan, including amendments to the Plan,
if any. In the event of a conflict between this Agreement and the Plan
provisions, the Plan provisions will control. The term “you” and “your”
refer to the Grantee named in the Agreement. Capitalized terms that are not
defined herein shall have the meanings ascribed to such terms in the Plan or
the Agreement.

 

In accepting the Annual Incentive Award set
forth in this Agreement you accept and agree to be bound by all the terms and
conditions of the Plan and this Agreement.

 

	
   

  	
  QUANEX
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond Jean – Chief Executive
  Officer

  

 

4

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