Document:

Exhibit
10.5

 

NON-QUALIFIED
STOCK OPTION AGREEMENT

 

 

	
  DATE:

  	
                                                 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PARTIES:

  	
  CASCADE CORPORATION

  	
   

  	
  (Cascade)

  
	
   

  	
  an Oregon corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
                                                  

  	
   

  	
  (Optionee)

  

 

RECITALS:

 

A.                                    Cascade
has adopted the 2002 Restatement of the 1995 Cascade Corporation Senior
Managers’ Incentive Stock Option Plan (the Plan).  The Plan provides for the grant of options
meeting the requirements of Section 422 of the Internal Revenue Code to
purchase shares of Cascade common stock (Stock).

 

B.                                    Cascade
desires to provide Optionee the opportunity to obtain stock ownership in
Cascade.  This will enable Optionee to
have a significant proprietary interest in Cascade’s success.

 

C.                                    On                 ,
the Compensation Committee (the Committee) of Cascade’s Board of Directors (the
Board) granted Optionee an incentive stock option (the Option), subject to the
terms and conditions of the Plan and this Agreement.

 

AGREEMENT:

 

The parties agree as
follows:

 

SECTION
1.                                                    GRANT
OF OPTION

 

Cascade grants to
Optionee the Option to purchase up to              shares
of Stock (Option Shares) from Cascade at a price of $            per
share (the Option Price).

 

SECTION
2.                                                    EXERCISE
OF OPTION

 

2.1                               Date
Exercisable.  The Option shall become exercisable at the rate of
25% after one year, 50% after two years, 75% after three years and 100% after
four years from the date of this Agreement.

 

 

2.2                               Manner
of Exercise.  The Option may be exercised in whole or in part by
delivery to Cascade of written notice, signed by the Optionee, specifying the
number of shares of Stock that the Optionee then desires to purchase, together
with cash, certified check, or bank draft payable to the order of Cascade, or
common shares of Cascade (provided use of Cascade common shares would not
trigger liability under any securities law or regulation), valued as of the
date of delivery to Cascade, or a combination of the above, totaling an amount
of United States dollars equal to the Option Price of such shares.  The exchange rate applied to foreign
currencies shall be that reported by The Wall Street Journal for the business
day prior to the date payment is delivered to Cascade.

 

2.3                               Stock
Certificates.  Promptly after an Optionee exercises an Option in
whole or in part, Cascade shall deliver to the Optionee a certificate or
certificates for the number of shares of Stock with respect to which the Option
was so exercised, registered in the Optionee’s name.

 

SECTION
3.                                                    DURATION
OF OPTION

 

The Option, to the extent
not previously exercised, shall terminate upon the earliest of the following
dates:

 

(a)                                                          (“Expiration
Date”).

 

(b)                                 The
date of termination of the Optionee’s Cascade employment; however, if such
termination is by reason of the Optionee’s disability [as defined in Section
§22 (e) (3) of the Internal Revenue Code] or death, the Option shall terminate
on the first anniversary of such termination.

 

SECTION
4.                                                    NONTRANSFERABILITY

 

4.1                               Restriction.  The
Option is not transferable by the Optionee except by Will or the laws of
descent and distribution and, during the Optionee’s lifetime, may be exercised
only by the Optionee or the Optionee’s guardian or legal representative.  No assignment or transfer of the Option,
whether voluntary, involuntary, or by operation of law or otherwise, except by
Will or the laws of descent and distribution, shall vest in the assignee or
transferee any interest or right. 
Immediately upon any attempt to assign or transfer the Option, the
Option shall terminate and be of no force or effect.

 

4.2                               Exercise
in the Event of Death or Disability.     Whenever
the word “Optionee” is used in this Agreement under circumstances in which the
Optionee is unable to act on his or her own behalf, the word “Optionee” shall
be deemed to include the persons, if any, named as the Optionee’s guardian or
legal representative.  In the event of
the Optionee’s death, the word “Optionee” shall be deemed to include the
Optionee’s executor, administrator, or the person or persons to whom the Option
may be transferred by Will or by the laws of descent and distribution.

 

 

SECTION
5.                                                    NO
RIGHTS AS SHAREHOLDER PRIOR TO EXERCISE

 

The Optionee shall not be
deemed for any purpose to be a Cascade shareholder with respect to any shares
subject to the Option under this Agreement as to which the Option shall not
have been exercised.

 

SECTION
6.                                                    ADJUSTMENTS

 

6.1                               No
Effect on Changes in Cascade’s Capital Structure.  The existence
of the Option shall not affect Cascade’s power to make or authorize any
adjustments, recapitalizations, reorganization, or other changes in its capital
structure, or any merger or consolidation, or any issue of bonds, debentures,
or preferred, or preference stocks ahead of or affecting the Stock, or corporate
dissolution or liquidation, or any sale or transfer of all or any part of its
assets or business, or any other corporate act.

 

6.2                               Adjustment
to Option Shares.  The Option Shares are shares of Stock as
constituted on the date of this Agreement, but payable in shares of stock, the
shares of Stock then subject to the Option shall be increased proportionately
without any change in the aggregate Option Price.  If all the outstanding shares of Stock shall
be changed into or exchanged for a different number or class of shares of the
Corporation, or of another corporation, through reorganization,
recapitalization, stock split-up, combination of shares, merger, consolidation,
or otherwise, then there shall be substituted for each share of Stock then
subject to the Option the number and class of shares into which each
outstanding share of Stock shall be so exchanged, all without any change in the
aggregate Option Price for the shares then subject to the Option.  In connection with any adjustment under this
Section 6 resulting in the nearest whole share if such interest is less than
0.5 share; otherwise, such fractional share interest may be rounded up to the
nearest whole share.

 

SECTION
7.                                                    COMPLIANCE
WITH SECURITIES LAWS

 

No shares shall be issued
or delivered under this Agreement unless and until, in the opinion of the
Committee, all applicable requirements of law or of any regulatory bodies
having jurisdiction over such issuance and delivery have been met.  Certificates representing shares may bear
such legend as Cascade may deem appropriate to state any restrictions on their
transfer.

 

SECTION
8.                                                    MISCELLANEOUS
PROVISIONS

 

9.1                               Violation.  The
Option shall not be exercisable at any time, in whole or in part, if issuance
and delivery of the Option Shares would violate any law or regulation in the
opinion of Cascade counsel.

 

 

9.2                               Disputes.  Any
dispute or disagreement that may arise under or as a result of this Agreement,
or any question as to the interpretation of this Agreement or the Plan, may be
determined by the Compensation Committee in its absolute and uncontrolled
discretion, and any such determination shall be final, binding, and conclusive
on all affected persons.

 

9.3                               Notices.  Notices
under this Agreement shall be in writing, and may be delivered personally or by
certified or registered mail, postage prepaid, addressed as follows:  Cascade Corporation, 2201 N.E. 201st Avenue,
Fairview, Oregon  97024, Optionee, (name
and address of Optionee); or to such other addresses as either party may
designate to the other in writing.

 

9.4                               Waiver
and Modification.  Provisions of this Agreement may be waived or
modified only by an agreement in writing signed by the parties.

 

 

	
  CASCADE CORPORATION

  	
  OPTIONEE:

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Its

  	
   

  	
   

  	
  [print name]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SignatureExhibit
10.7

 

STOCK
APPRECIATION RIGHTS AGREEMENT

 

 

DATE:                                                                                                             

 

PARTIES:              CASCADE
CORPORATION, an Oregon corporation (“Cascade”), whose address is 2201 N.E.
201st Avenue, Fairview, Oregon 97024

 

and

 

NAME (“Participant”),
whose address is                                     .

 

RECITALS

 

A.                                    Cascade
has adopted the Cascade Corporation Stock Appreciation Rights Plan (the “Plan”).  The Plan provides for the grant of stock
appreciation rights (“SARs”) with respect to shares of Cascade common stock (“Common
Stock”).

 

B.                                    On
May 26, 2004 the Compensation Committee of Cascade’s Board of Directors (the “Board”)
granted Participant certain SARs, subject to the terms and conditions of the
Plan and this Stock Appreciation Rights Agreement (“Agreement”).

 

C.                                    This
Agreement evidences the grant of such SARs to Participant.

 

AGREEMENT

 

The parties agree as
follows:

 

SECTION 1.                                                    DEFINED TERMS

 

When used in this
Agreement, the following terms have the meaning specified below:

 

“Base Price”
means the base price of each SAR as established by the Compensation Committee
of the Board (“Committee”), which may not be less than the Fair Market Value of
a common share of Common Stock on the date the grant of the SAR is made.  The Base Price of each SAR evidenced by this
Agreement is $       .

 

 

“Fair
Market Value” means with respect to a share of Common Stock,
the closing price of such Common Stock as quoted on the New York Stock Exchange
or, if shares are not listed on that exchange, the primary trading venue for
Cascade shares, as reported in the Wall Street Journal on the date of grant or
exercise, as the case may be, or if the shares did not trade that date, on the
last prior date on which the shares were traded.

 

“Grant
Date” means the date the grant of the SAR is made, which is
reflected as the date of this Agreement.

 

SECTION 2.                                                    GRANT OF SARs

 

Subject to the terms and
conditions of this Agreement and the Plan, Cascade grants to Participant                SARs.  Each SAR entitles Participant, upon exercise
of the SAR, to receive an amount (payable solely in the form of Common Stock
valued at Fair Market Value) equal to the difference between the Fair Market
Value of a single share of Common Stock on the date of exercise and the Base
Price of the SAR.

 

SECTION 3.                                                    EXERCISE OF SARs

 

3.1                               Date Exercisable.  The SARs granted pursuant to
Section 2 above shall become exercisable at the rate of 25% after one year, 50%
after two years, 75% after three years and 100% after four years from the date
of this Agreement.

 

3.2                               Manner of Exercise.  The SARs may be exercised by
delivery to Cascade of a written notice, signed by Participant, specifying the
number of SARs that Participant then desires to exercise.  SARs may be exercised only during the 30-day
period following the third business day after public dissemination of Cascade’s
financial results for any fiscal quarter or for its fiscal year.

 

3.3                               Stock Certificates.  Promptly after Participant
exercises SARs in accordance with Section 3.2 above, Cascade shall deliver to
Participant a certificate or certificates for the number of shares of Common
Stock to which Participant is entitled as a result of such exercise, registered
in Participant’s name.

 

SECTION 4.                                                    DURATION OF SARs

 

Each SAR, to the extent
not previously exercised, shall terminate on the earliest of the following
dates:

 

(a)                                  The
tenth anniversary of the Grant Date.

 

 

(b)                                 The
90th day following the date of termination of Participant’s Cascade
employment or, if longer, the 30th day after public dissemination of
Cascade’s financial results for the first fiscal period ending after the
termination of Participant’s employment; however, if such termination is by
reason of the Participant’s (i) termination of employment after age 62 under
circumstances that the Committee in its sole discretion deems equivalent to
retirement (including retirement due to physical or mental disability that the
Committee determines is of such a nature as to prevent further performance of
job duties) or (ii) death, the SAR shall terminate on the first anniversary of
such termination.  Notwithstanding the
foregoing, if Participant’s employment is terminated for (i) willful failure to perform
reasonable directives of the Cascade’s management; (ii) use of alcohol or
illegal drugs which interferes with Participant’s performance of duties in the
judgment of Cascade’s management; (iii) dishonesty affecting Cascade or any
related entity or conviction of a felony or any crime involving fraud or
misrepresentation; (iv) gross negligence or willful misconduct resulting in
substantial loss to Cascade, damage to Cascade’s reputation, or theft,
embezzlement or similar loss to Cascade; or (v) other conduct that the
Committee in its sole discretion determines sufficiently harmful to the interests
of Cascade to constitute cause for termination shall forfeit all outstanding
SARs granted pursuant to this Agreement immediately upon such termination.

 

SECTION 5.                                                    NONTRANSFERABILITY

 

During Participant’s
lifetime, SARs are exercisable only by Participant, Participant’s payee
pursuant to a valid order by a domestic relations court with jurisdiction, or
by a legally designated guardian or conservator.  With the Committee’s prior consent,
Participant may transfer SARs to a trust for Participant’s benefit established
for estate planning purposes.  In the
event of Participant’s death, SARs exercisable as of the date of Participant’s
death may be exercised by such beneficiary as Participant may have designated
in writing in a manner determined by the Committee.  In the absence of such a designation,
Participant’s estate shall have the right to exercise such SARs.  No assignment or transfer of SARs, whether
voluntary, involuntary, or by operation of law or otherwise, except as
permitted by this Agreement or the Plan, shall vest in the assignee or
transferee any interest or right.

 

SECTION 6.                                                    NO RIGHTS AS SHAREHOLDER PRIOR TO EXERCISE

 

Participant shall not be
deemed for any purpose to be a Cascade shareholder with respect to SARs that
have been granted to Participant under this Agreement prior to the exercise of
such SARs.

 

 

SECTION 7.                                                    TAX REIMBURSEMENT

 

Participant agrees to pay
to Cascade an amount sufficient to provide for any withholding or similar tax
liability imposed on Cascade in connection with or with respect to any exercise
of SARs.  Alternatively, the Committee
may in its discretion may reduce the number of shares issued to Participant
upon exercise of a SAR so that Fair Market Value of the shares issued to the Participant
equals the Fair Market Value of all shares to which the Participant was
otherwise entitled as a result of the SAR exercise, less the Committee’s
estimate of such withholding or similar tax liability.

 

SECTION 8.                                                    COMPLIANCE WITH LAWS

 

No shares shall be issued
or delivered under this Agreement unless and until, in the opinion of counsel
to Cascade, all applicable requirements of law or of any regulatory bodies
having jurisdiction over such issuance and delivery have been met.  Certificates representing shares may bear
such restrictions on sale or other transfer as counsel to Cascade may determine
are required under securities or other applicable laws.

 

SECTION 9.                                                    MISCELLANEOUS PROVISIONS

 

9.1                               Disputes.  Any dispute or disagreement that may
arise under or as a result of this Agreement, or any question as to the
interpretation of this Agreement or the Plan, may be determined by the
Committee in its sole discretion, and any such determination shall be final,
binding, and conclusive on all affected persons.

 

9.2                               Notices.  Any notices under this Agreement must be
in writing and will be effective when actually delivered personally or, if
mailed, when deposited as registered or certified mail directed to the address
of the parties set forth above or to such other address as a party may certify
by notice to the other party.

 

9.3                               Waiver and Modification.  Provisions of this
Agreement may be waived or modified only by an agreement in writing signed by
the parties.

 

9.4                               Governing Law.  This Agreement shall be governed
by and construed in accordance with the laws of the state of Oregon, without
regard to principles of conflicts of laws.

 

9.5                               Attorneys’ Fees  In the event of any suit or
action or arbitration proceeding to enforce or interpret any provision of this
Agreement (or that is based on this Agreement), the prevailing party will be
entitled to recover, in addition to other costs, reasonable attorneys’ fees in
connection with such suit, action, or arbitration, and in any appeal.  The determination of who is the prevailing
party and the amount of reasonable attorneys’ fees to be paid to the prevailing
party will be decided by the arbitrator or arbitrators (with respect to

 

 

attorneys’ fees incurred
prior to and during the arbitration proceedings) and by the court or courts,
including any appellate courts, in which the matter is tried, heard, or
decided, including the court that hears any exceptions made to an arbitration
award submitted to it for confirmation as a judgment (with respect to attorneys’
fees incurred in such confirmation proceedings).

 

	
  CASCADE CORPORATION

  	
  PARTICIPANT:

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  
	
  Its

  	
   

  	
   

  	
  [print name]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

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