EXHIBIT 10.34
2001 NON-QUALIFIED STOCK OPTION AGREEMENT
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Ralcorp Holdings, Inc. (the "Company"), effective May 24, 2001, grants this
Non-Qualified Stock Option to _______________ ("Optionee") to purchase a total
of _______ shares of its $.01 par value Common Stock (the "Common Stock") at a
price of $16.25 per share pursuant to the Ralcorp Holdings, Inc. Incentive Stock
Plan (the "Plan"). Subject to the provisions of the Plan and the following
terms, Optionee may exercise this option as set forth below by tendering to the
Company written notice of exercise together with the purchase price in either
cash, or in shares of Common Stock of the Company at their fair market value as
determined by the Company's Board of Directors (the "Board"), or in both cash
and such shares.
NOW THEREFORE, the Company and Optionee agree, for and in consideration of
the terms hereof, as follows:
1. Exercise - This Option shall become exercisable upon the occurrence of
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any of the events set forth below. This Option shall become exercisable in full
on the date of such event and shall remain exercisable for the periods set forth
below. Thereafter, the unexercised portion of this Option is forfeited and may
not be exercised.
a. Optionee's death (exercisable for three years).
b. Optionee's voluntary termination or retirement (whether pursuant to any
mandatory retirement provision of the Company's Articles of Incorporation,
Bylaws or Board resolution, or otherwise) at or after attainment of age 70
(exercisable for three years).
c. Optionee's voluntary termination due to mental or physical impairment
resulting in his inability to serve as a Director (exercisable for three years).
d. Optionee's voluntary termination, or termination due to expiration of
Optionee's term without re-election to a subsequent term in connection with or
following a Change-in-Control (exercisable for six months).
e. Optionee's voluntary termination, or termination due to expiration of
Optionee's term without re-election to a subsequent term other than under
circumstances set forth in paragraphs 1.b., 1.c., or 1.d. (exercisable for 90
days).
2. Forfeiture - Notwithstanding anything to the contrary contained in the
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Plan, this Option is subject to forfeiture if Optionee is removed from his
position as a Director for cause in accordance with the Company's Articles and
Bylaws and the corporation laws of the State of Missouri or if Optionee fails to
exercise this Option within the appropriate period set forth in paragraph 1, but
shall not be subject to forfeiture for any other reason. Following forfeiture,
no portion of this Option may be exercised.
3. Change in Control - In the case of a Change in Control (other than a
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transaction in which the Company is the continuing or surviving corporation and
which does not result in the outstanding shares of Common Stock being converted
into or exchanged for different securities, cash or other property, or any
combination thereof), Optionee shall have the right (subject to the provisions
of the Plan and any limitation applicable to the Option contained herein)
thereafter and during the term of the Option, to receive upon exercise thereof
the Acquisition Consideration (as defined below) receivable upon the Change in
Control by a holder of the number of shares of Common Stock which would have
been obtained upon exercise of the Option or portion thereof, as the case may
be, immediately prior to the Change in Control.
4. Definitions - For purposes of this Agreement, the following terms have
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the meanings set forth below:
a. "Acquisition Consideration" - Shall mean the kind and amount of
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shares of the surviving or new corporation, cash, securities, evidence of
indebtedness, other property or any combination thereof receivable in respect of
one share of the Common Stock upon consummation of a Change in Control. In the
case of a Change in Control resulting from the event set forth in paragraph
4(b)(i), the value of the Acquisition Consideration shall be equal to the
highest price paid by such person for a share of the Company's Common Stock
during the two-year period preceding the date on which such person became the
beneficial owner of more than 50% of the Company's Common Stock. If such price
is paid in the form of non-cash consideration, the value of the Acquisition
Consideration shall be equal to the fair market value of such consideration at
the time of the purchase of such share.
b. "Change in Control" - Shall mean when (i) a person, as defined under
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the securities laws of the United States, acquires beneficial ownership of more
than 50% of the outstanding voting securities of the Company; or (ii) the
directors of the Company, immediately before a business combination between the
Company and another entity, or a proxy contest for the election of directors,
shall as a result of such business combination or proxy contest, cease to
constitute a majority of the Board of Directors of the Company or any successor
to the Company.
5. This Agreement shall be governed by the laws of the State of Missouri
without reference to the conflict of laws provisions thereof.
6. No amendment or modification of this Option shall be valid unless the
same shall be in writing and signed by the Company and Optionee. The foregoing,
however, shall not prevent the Company from amending or modifying the Plan
except that no such amendment or modification shall adversely affect the
Optionee's rights under this Option Agreement.
ACKNOWLEDGED RALCORP HOLDINGS, INC.
AND ACCEPTED:
BY:
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Optionee ▇. ▇. ▇▇▇▇▇▇▇▇
Secretary
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Date