Document:

EXHIBIT 10.9

 

 

QUANEX CORPORATION

 

DIRECTOR [STOCK-][CASH-]SETTLED

RESTRICTED STOCK UNIT
AWARD AGREEMENT

 

<< Full Name>>

Grantee

 

	
  Date of Award:

  	
   

  	
  <<                            >>

  
	
   

  	
   

  	
   

  
	
  Number of Restricted Stock Units:

  	
   

  	
  <<                            >>

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
  <<                            >>

  
	
   

  	
   

  	
   

  
	
  General
  Vesting Schedule/Restricted Period:

  	
   

  	
  [100%
  vested on the Date of Grant.]

  [3
  years, with vesting in installments of 33 1/3% on the anniversary date of the
  Date of Grant in each of the years                ,
                 
  and                .]

   

  [100% exercisable on [first][second][third] anniversary of the Date
  of Grant. 0% exercisable prior to the [first][second][third] anniversary of
  the Date of Grant.]

  

 

AWARD OF RESTRICTED
STOCK UNITS

 

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 (the “Date of Award”), that number of restricted
stock units set forth above (the “RSUs”),
on the following terms and conditions:

 

[During
the Restricted Period, t][T]he RSUs will be evidenced by entries in a bookkeeping
ledger account which reflects the number of RSUs credited under the Plan for
your benefit. [For purposes of this Agreement,
the term “Restricted Period”
means the period designated by the Committee during which the RSUs are subject
to forfeiture and restrictions on transfer (the “Forfeiture Restrictions”). The
Restricted Period and all Forfeiture Restrictions on the RSUs covered hereby
shall lapse as to those RSUs when the RSUs become vested and you meet all other
terms and conditions of this Agreement.]

 

Upon the earlier of (1) [the first business day immediately preceding the Expiration Date][the date the RSUs granted under this Award become
vested under the General Vesting Schedule], (2) the
date on which you cease to be a member of the Board of Directors of the Company
for any reason or (3) the date on which occurs a “change in the ownership or
effective control of the corporation” or a “change in the ownership of a
substantial portion of the assets of the corporation” (within the meaning of
section 409A of the Internal Revenue Code of 1986, as amended) with respect to
the Company, the Company shall issue to you [cash in an
amount equal to the market value of] one share of the Company’s
common stock, $0.50 par value per share (the “Common
Stock”), in exchange for each RSU that is awarded to you hereby and
thereafter you shall have no further rights with respect to such RSU. [The
Company shall cause to be delivered to you (or your legal representative or
heir) a stock certificate representing those shares of the Common Stock issued
in exchange for RSUs awarded hereby, and such shares of the Common Stock shall
be transferable by you (except to the extent that any 

 

Non-Employee Director

[Immediate Vesting
]—[Cliff Vesting]—[Graded Vesting]

Stock Settled—Cash Settled

 

 

proposed transfer would,
in the opinion of counsel satisfactory to the Company, constitute a violation
of applicable federal or state securities law).]

 

[If
you separate from service with the Company and all Affiliates (collectively,
the “Company Group”) before the third
anniversary of the Date of Award (the “Third
Anniversary Date”), the Forfeiture Restrictions then applicable to the RSUs shall not
lapse and the number of RSUs then subject to the Forfeiture Restrictions shall
be forfeited to the Company on the date of your separation from service. Notwithstanding
the preceding sentence, if you die, incur a Disability or Retire before the
Third Anniversary Date, each while in the active employ of one or more members
of the Company Group, all remaining Forfeiture Restrictions shall lapse shall
lapse on a prorated basis determined by
dividing the number of days during the period commencing on the last
anniversary vesting date or Date of Grant, as applicable, and ending on the
date of your death, Disability or Retirement by 1095 and the number of RSUs
then remaining subject to the Forfeiture Restrictions shall be forfeited to the
Company on the date of your separation from service.
Further, if a Section 409A Change in Control occurs before the Third
Anniversary Date, while in the active employ of one or more members of the
Company Group, all remaining Forfeiture Restrictions shall immediately lapse on
the date of the Section 409A Change in Control. For
purposes of this Section, the term “Retirement” means your voluntary
cessation of your membership as a director with the Company on or after the
later of (a) the date on which you attain age 70 or (b) the date your term as a
director expires if you attain age 70 during such term; provided, that that with respect to any person who was a director
on November 1, 1996, the reference to “70 years” shall be changed to “72
years.”]

 

If during the [Restricted Period][period] you hold any RSUs awarded hereby the Company pays a
dividend in cash with respect to the outstanding shares of the Common Stock (a “Cash Dividend”), then the Company will pay
to you in cash, an amount equal to the product of (a) the RSUs awarded
hereby that have not been exchanged by the Company for cash and (b) the
amount of the Cash Dividend paid per share of the Common Stock (the “Dividend Equivalent”). The Company shall
pay to you currently (and in no case later than the end of the calendar year in
which the dividends are paid to the holders of the Common Stock, or if later,
the 15th day of the third month following the date the dividends are
paid to the holders of the Common Stock) an amount equal to such Dividend
Equivalents.

 

If during the [Restricted Period][period]  you hold any
RSUs awarded hereby the Company pays a dividend in shares of the Common Stock
with respect to the outstanding shares of the Common Stock, then the Company
will increase the RSUs awarded hereby that have not then been exchanged by the
Company for shares of the Common Stock by an amount equal to the product of
(a) the RSUs awarded hereby that have not been exchanged by the Company
for cash and (b) the number of shares of the Common Stock paid by the
Company per share of the Common Stock (collectively, the “Stock Dividend RSUs”). Each Stock Dividend
RSU will be[paid in cash][exchanged for
shares of the Common Stock] at the same time and on the same basis as such
RSU.

 

The RSUs 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 shall not be bound thereby. [Further,
any shares of Common Stock awarded hereunder 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 agree that (a) the Company may
refuse to cause the transfer of such 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 such shares.]

 

2

 

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

 

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

 

	
   

  	
  QUANEX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond
  Jean – Chief Executive Officer

  

 

3EXHIBIT 10.10

 

 

QUANEX CORPORATION

 

EMPLOYEE PERFORMANCE STOCK AWARD AGREEMENT

 

<<Name>>

Grantee

 

	
  Date of Award:

  	
   

  	
  <<                      >>

  
	
   

  	
   

  	
   

  
	
  Target Number of Shares of Common Stock:

  	
   

  	
  <<                      >>

  

 

AWARD GRANT

 

1.                                      GRANT
OF PERFORMANCE STOCK 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 opportunity to receive shares of the Company’s Common
Stock, $0.50 par value per share (the “Common
Stock”), based upon attainment of the Performance Goals during the
Performance Period on the terms and conditions set forth in this Performance
Stock Award Agreement (this “Agreement”).

 

For purposes of
this Agreement, the term “Performance Period”
means the          -year period
beginning                      ,
20    , and ending                            ,
20    . For purposes of this Agreement, the term “Performance Goals” means                      .

 

2.                                      FINAL
PERFORMANCE FACTOR. The aggregate number of shares of the Common Stock
to be issued to you under this Agreement (the “Shares”)
is equal to the Target Number of Shares of Common Stock set forth above multiplied
by the Final Performance Factor (which is determined as provided below):

 

2.1           The Final
Performance Factor shall be equal to one (1) if (a) the Company achieves
the Target Milestone during the Performance Period and does not achieve the
Maximum Milestone during the Performance Period and (b) you remain in the
active employ of one or more members of the Company Group through the last day
of the Performance Period. For purposes of this Agreement, the “Target Milestone” means                      
and the “Maximum Milestone” means
                     .

 

2.2           The Final
Performance Factor shall be equal to two (2) if (a) the Company achieves
the Maximum Milestone during the Performance Period and (b) you remain in
the active employ of one or more members of the Company Group through the last
day of the Performance Period.

 

2.3           The Final
Performance Factor shall be equal to three-fourths (3⁄4) if (a) the Company
achieves the Threshold Milestone during the Performance Period and does not
achieve the Target Milestone during the Performance Period and (b) you
remain in the active employ of one or more members of the Company Group through
the last day of the Performance Period. For purposes of this Agreement, the “Threshold Milestone” means                      .

 

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

 

For example, assume that
the Committee grants an employee a performance based compensation award under
the Plan that is contingent upon achieving Performance Goal A and
Performance Goal B, 

 

Employee without Change in
Control Agreement

 

 

weighting the importance
of the goals as 50% and 50%, respectively. The Committee establishes Threshold,
Target and Maximum Milestones for each Goal. The Final Performance Factor
assigned for achieving the threshold, target and maximum performance standards
are 3⁄4, 1 and 2, respectively. Finally, assume that the employee is awarded
2,000 Performance Shares with a Target Value of $100, is continuously employed
by the Company throughout the Performance Period and achieves the Maximum
Milestone for Performance Goal A, and precisely halfway between the Target
and Maximum Milestones for Performance Goal B. The total amount payable to
the employee under the award is $250,000, which is determined as follows:  The amount payable to the employee with
respect to Performance Goal A is $100,000 (50% (Performance Goal
Percentage) x 2,000 (Performance Shares) x $100 (Performance Share Value) x 1
(Final Performance Factor) = $100,000), and the amount payable to the employee
with respect to Performance Goal B is $150,000 (50% (Performance Goal
Percentage) x 2000 (Performance Shares) x $100 (Target Value) x 1.5 (Final
Performance Factor)= $150,000).

 

2.5           If the Threshold
Milestone is not achieved during the Performance Period, then the award
pursuant to this Agreement shall lapse and be forfeited as of the last day of
the Performance Period.

 

2.6           The Committee’s
determinations with respect to the Performance Period for purposes of this
Agreement shall be binding upon all persons. The Committee may not increase the
amount payable under this Agreement.

 

3.                                      PAYMENT.
The Company, on behalf of the Employer, shall cause the Shares to be issued
to you on
                           ,
20     (the “Payment
Date”), unless otherwise provided under this Agreement.

 

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 through 4.4 below,
all of your rights in this Agreement will lapse and be completely forfeited on
the date your employment terminates.

 

4.2           Permanent
Disability. Notwithstanding any other provision of this
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 Company will issue to you shares of Common Stock in an amount
equal to the product of (1) and (2) where (1) is the number of shares you would
have received under this 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 to you on the Payment Date. After such Shares are issued to you, you will
have no further rights with respect to this Agreement and the Company Group
will have no further obligations to you pursuant to this Agreement. 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 this 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 Company will issue to your estate shares
of Common Stock in an amount equal to the product of (1) and (2) where (1) is
the number of shares you would have received under this Agreement if your
employment with the Company Group had not been terminated before 

 

2

 

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 to your estate on
the Payment Date. After such Shares are issued, the Company Group will have no
further obligations to you pursuant to this Agreement.

 

4.4           Retirement. Notwithstanding
any other provision of this 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 Company will issue to you shares of Common Stock in
an amount equal to the product of (1) and (2) where (1) is the number of shares
you would have received under this 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 to you on the Payment Date. After such Shares are issued to you,
you will have no further rights with respect to this Agreement and the Company
Group will have no further obligations to you pursuant to this Agreement. 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.

 

5.                                      TAX WITHHOLDING. To the extent that the issuance of Shares pursuant
to this Agreement results in income, wages or other compensation to you for any
income, employment or other tax purposes with respect to which the Company or the
legal entity that is a member of the Company Group and that is classified as
your employer (the “Employer”) has
a withholding obligation, you shall deliver to the Company at the time of such
receipt or issuance, as the case may be, such amount of money as the Company or
the Employer 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 or from any cash or stock remuneration or other payment then or
thereafter payable to you by the Company or the Employer any tax required to be
withheld by reason of such taxable income, wages or compensation including
(without limitation) shares of Common Stock 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.

 

6.                                      NONTRANSFERABILITY. This Agreement is not
transferable by you otherwise than by will or by the laws of descent and
distribution. Your rights 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 award
granted under this Agreement shall not affect in any way the right or power of
the Company or any company the stock of which is awarded pursuant to this
Agreement 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.

 

3

 

8.                                      AWARD UNDER THIS AGREEMENT DOES NOT AWARD ANY RIGHTS OF A SHAREHOLDER. You shall not
have the voting rights or any of the other rights, powers or privileges of a
holder of the Common Stock with respect to the award granted to you under this
Agreement. Only after the Shares are issued in exchange for your rights under
this Agreement will you have all of the rights of a shareholder with respect to
such Shares issued in exchange for your rights under this Agreement.

 

9.                                      EMPLOYMENT RELATIONSHIP. For purposes of this
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.

 

10.                               NOT AN EMPLOYMENT AGREEMENT. This Agreement is not an
employment agreement, and no provision of this 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.

 

11.                               SECURITIES ACT LEGEND. If you are an officer or
affiliate of the Company under the Securities Act of 1933, you consent to the
placing on any certificate for the Shares of an appropriate legend restricting
resale or other transfer of the Shares except in accordance with such Act and
all applicable rules thereunder.

 

12.                               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.

 

13.                               REGISTRATION.
The Shares that may be issued under the Plan are registered with the
Securities and Exchange Commission under a Registration Statement on Form S-8.

 

14.                               SALE OF
SECURITIES. The Shares that may be issued under this Agreement
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.

 

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

 

16.                               MISCELLANEOUS. This 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 this Agreement. Capitalized terms that are not
defined herein shall have the meanings ascribed to such terms in the Plan.

 

In
accepting the award granted in this Agreement you accept and agree to be bound
by all the terms and conditions of the Plan, this Agreement and the Terms and
Conditions.

 

	
   

  	
  QUANEX CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Raymond Jean – Chief Executive Officer

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]