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Exhibit 10.6    
  

UNOVA, INC.  

1999 STOCK INCENTIVE PLAN

2001 STOCK INCENTIVE PLAN  

PLAN DOCUMENT

RELATING TO ELECTION TO RECEIVE

EMPLOYEE STOCK OPTIONS

IN LIEU OF CERTAIN CASH COMPENSATION

PAYABLE TO UNOVA OFFICERS

IN FISCAL YEAR 2002  

The date of this Plan Document is December 21, 2001  

1

 
UNOVA  

Special Provisions Applicable to Certain

Compensation Payable to Certain Officers of

UNOVA in Fiscal Year 2002  

UNOVA, Inc.
is offering certain officers the opportunity to receive, in lieu of a portion of their cash compensation otherwise payable during UNOVA's 2002 fiscal year, options to purchase UNOVA
common stock upon the terms and conditions described below. 

Attached
to this Plan Document is a Participant Overview which contains some examples of the features of this Plan as well as some additional data concerning UNOVA. 

The
following questions and answers are intended to describe the basic features of this special compensation arrangement. 

Q. 1. For this purpose how is the term "cash compensation" defined?  

        Your cash compensation eligible for this special arrangement is your weekly base compensation amount multiplied by 52 plus the amount of any bonus which may be
awarded to you in connection with your services during the 2001 fiscal year and which will be payable in late February or early March of 2002. Special bonuses for the achievement of a particular
one-time achievement, pay in lieu of vacation time, car allowances, hiring bonuses, and other similar amounts of an extraordinary nature will not be considered part of your cash
compensation. 

Q. 2. How much of my compensation may be received in the form of stock options?  

        You may designate up to 50% of your cash compensation, in increments of 10%, to be satisfied through the grant of stock options. You will need to make separate
designations with respect to base salary and with respect to any bonus which may be payable to you in fiscal 2002. 

Q. 3. How many stock options will I receive for the amount of cash compensation I elect to forego?  

        You will receive options to purchase UNOVA Common Stock based on the ratio of 1 option for each $1.00 of compensation which you forego. Thus if you forego $1,000
of compensation in 2002 you will receive options to purchase 1,000 shares of UNOVA Common Stock. If the computation of the number of option you receive results in an option involving a fractional
share, such fraction will be rounded upward to the nearest full share. 

Q. 4. What will be the exercise price of these options?  

        The exercise price will be the fair market value of the UNOVA common stock on the date the options are granted to you, which is expected to be April 15,
2002. The fair market value is determined by taking the average of the high and low reported sales prices of the Common Stock as reported in the New York Stock Exchange composite quotations on the
date of grant. 

Q. 5. Will I receive "incentive stock options" as defined in the Internal Revenue Code or will I receive "non-qualified stock options"?  

        All stock options granted in lieu of cash compensation will be non-qualified stock options. Under no circumstances will we issue any "incentive stock
options" under this special program. For a discussion of the differences between the tax treatment of incentive stock options and non-qualified stock options, see the discussion under the
caption "Description of the UNOVA, Inc. 1999 Stock 

2

 

Incentive Plan and the 2001 Stock Incentive Plan: Certain Federal Income Tax Consequences" set forth in this Prospectus. 

Q. 6. What will be the other terms of these options?  

        The options will be fully vested and exercisable on the date they are granted. They will expire, if not previously exercised, five years from the date they are
granted. These options will be granted under either our 1999 Plan or our 2001 Plan, as we determine in each case. In addition to the terms and conditions of the options set forth in this Prospectus,
the options will be subject to all of the terms and conditions of the 1999 Plan or the 2001 Plan. In the event that you leave our employ for a reason other than retirement, death, or disability as
defined in those plans, you will generally have a period of three months following termination of employment to exercise these options. 

Q. 7. Since the number of options I may receive in April will be based on my anticipated compensation for the entire 2002 fiscal year, will I forfeit some of the options if I
leave employment with UNOVA prior to December 31, 2002?  

        No; you will retain all of the options that are granted to you in April subject to their terms relating to exercisability following termination of employment
referred to in the answer to Question 6 above. 

Q. 8. If I receive an increase in compensation during the fiscal year, will the number of options I am eligible to receive be increased?  

        No, not under this program. 

Q. 9. What if I elect to receive part of my compensation in stock options but terminate my employment prior to receiving the options?  

        We will work out an arrangement to recoup your foregone income if you leave the Company before the options were granted. 

Q. 10. What is the deadline for making my election to receive stock options in lieu of cash compensation?  

        The deadline for making this election is December 31, 2001. Your election form must be signed by this date. Once signed please fax or promptly mail it to
Daniel S. Bishop, UNOVA's Senior Vice President, General Counsel and Secretary at the UNOVA corporate office. We would expect to receive your signed and dated election forms before January 11,
2002. The election form is included as a separate page with this material you are receiving.

Q. 11. May I change my election prior to April 15, 2002? For example, if I do not receive the entire bonus amount I am expecting, may I reduce the amount of compensation
I have elected for stock option payment so that I will have enough cash for my current requirements?  

        No. Your election will be irrevocable. But note that the election form allows you to specify different percentages of base compensation and of bonus for stock
option treatment. Thus, you could elect stock option payment of 10% of your base compensation but 50% of your bonus. Such an election might help assure that you have adequate cash compensation for
current needs. 

Q. 12. What does UNOVA recommend that I do?  

        We recognize that the decision to accept stock options in lieu of cash compensation is an individual one that should be based on a variety of factors. You should
consult with your personal 

3

 

advisors about your financial or tax situation, and you should carefully review the materials concerning UNOVA and its financial condition that have been provided to you. 

        Your
decision of whether to accept stock options in lieu of cash compensation should take into account the various risks inherent in our business. These risks include, but are not
limited to: fluctuations in the strength of the automotive and aerospace markets; technological changes and developments; the presence of competitors with greater financial and other resources; the
availability and cost of materials and supplies; relations with our employees; our ability to manage operating costs; worldwide political stability and economic conditions; regulatory uncertainties;
and operating risks associated with international operations. You should talk to your personal advisors regarding these and other risks. Neither UNOVA nor its Board of Directors is making any
recommendations as to whether or not you should elect to receive part of your compensation in the form of stock options or, if so, what percentage you should elect. 

Q. 13. What effect will receipt of compensation in the form of stock options have on my current income tax liability?  

        In the opinion of UNOVA's Tax Counsel, all taxable events are deferred until the options are exercised. Based upon current tax laws, the following tax rules
should apply: 

        The
amount of your compensation you elect to forego (in order to receive stock options) will not be included in your taxable income. The stock options will not be taxable at grant. Upon
exercise, you will
recognize ordinary income equal to the gain on the stock options at the time of exercise. Any subsequent gains in the stock price will be treated as capital gains at the time of sale. 

        In
order to achieve the tax deferral on the bonus amount, it is necessary to meet the IRS guidelines for tax deferred plans. This requires that elections are irrevocable and must be made
in advance of final compensation determinations. 

        All
participants are encouraged to consult with a tax professional before agreeing to waive any compensation in exchange for Non-Qualified Stock Options. Although the company
believes that it is reasonable to conclude that you will not be taxed on the amount of waived bonus payments, the tax rules governing when individuals are in "constructive receipt" of income are not
clear. The company's decision to provide you with the opportunity to forego cash compensation should not be construed as tax advice.

Q. 14. Will my acceptance or rejection of stock options in lieu of cash compensation affect the number of stock options I might receive in the future outside of this program?  

        No. The Compensation Committee of the Board of Directors makes recommendations to the Board as to the grant of options or other stock-based awards from time to
time based on various factors, including in certain cases the recommendations of independent compensation consultants which the Board may retain. The grant of any such stock-based awards is in the
sole discretion of the Board and its Compensation Committee, and the award made to any individual will not be influenced in any way by the degree to which the individual elects to participate in this
special program for 2002. 

Q. 15. Could election of compensation in the form of stock options adversely affect my rights under any other employee benefit plan?  

        Not so far as we are presently able to determine. We are amending the UNOVA Restoration Plan, Supplemental Executive Retirement Plan, and Change of Control
Employment Agreements to provide that participants will not suffer a loss in benefits under these executive plans because they elected to receive a part of their compensation in the form of stock
options during 2002. We will also modify the executive insurance benefit so that it will not decrease. 

Q. 16. Who should I contact if I have questions about this program?  

        For additional information or assistance, you should contact Daniel S. Bishop by telephone at (818) 992-2902, or by email at dbishop@unova.com.
You should consult your personal advisors if you have any questions about your financial or tax situation. 

4

 

Participant Overview*

December 21, 2001 

This Participant Overview is designed to supplement the information contained in the Plan Description.

Plan Guidelines  

The
options will be issued pursuant to the provisions of the UNOVA 1999 and 2001 Stock Incentive Plans. 

Election—2001  

In
2001, eligible participants may elect to forgo up to 50% of your 2001 bonus or up to 50% of your 2002 base salary, in increments of 10%. As required by the IRS, this election must be made prior to
the time the bonus amount is determinable. Options will be granted on April 15, 2001. The exchange rate is 1 option for every $1 foregone. Once the election is made, it cannot be changed. 

Example:
 

	Election:	 	20% of Bonus
	Bonus:	 	$50,000
	Options Granted:	 	$10,000 × 1 =        10,000 options
	(All amounts will be rounded down to he nearest whole number of options.)

The election for 2001 must be made no later than December 31, 2001.  

To
make an election, you must complete, sign, and date the enclosed election agreement no later than December 31, 2001. You must then promptly fax or mail the election form to Daniel S. Bishop
at UNOVA's Corporate Offices. 

Date of Option Grant  

        Based
on election decisions in 2001, eligible employees will receive option grants on or around April 15, 2002. This delay is a result of UNOVA's recently provided opportunity for
option holders to exchange specified outstanding options for a new option award on October 8th, 2001. As a result, granting awards prior to April 15th would
result in negative accounting implications for the Company. 

Option Exercise Price  

The
option exercise price will be the fair market value of UNOVA stock on the date of grant, expected to be April 15th, 2002. The fair market value is determined by taking the
average of the high and low
reported sales price of the Common stock as reported in the New York Stock Exchange composite quotations on the date of grant. 

	*
	The
following is an overview only intended to broadly describe the plan's features. The Plan Document will control all issues regarding the options. 

5

 

Vesting  

Options
granted in exchange for the 2001 deferral decisions will vest immediately upon the date of grant. 

Unless
otherwise determined by the Compensation Committee of the UNOVA Board of Directors, all options will generally expire on the earlier of 5 years or 3 months after termination of
employment, excluding termination for death, disability or retirement. 

Exercise  

No
options may be exercised before the date of grant; however, at any time after the date of grant, each participant may exercise some or all of their vested options up until the date of option
expiration. 

Tax Impact  

Based
upon current tax laws, the following tax rules should apply: 

	•
	The
original bonus amount will not be included in 2002 taxable income.

	•
	Any
salary deferred in 2002 will not be included in 2002 taxable income.

	•
	The
stock options will not be taxable at grant. Upon exercise, you will recognize ordinary income equal to the gain on the stock options at the time of
exercise. Any subsequent gains in the stock price will be treated as capital gains at the time of sale. 

Example: 

Grant =
2,000 options at $4

Exercise 2,000 options at $8

Gain of $4 times 2,000 shares = $8,000

Ordinary Income = $8,000 

In
order to achieve the tax deferral on the bonus amount in 2001, it is necessary to meet the IRS guidelines for tax deferred plans. This requires that elections are irrevocable and must be made in
advance of bonus determinations. 

The
balance of the gain on the sale of the stock is treated as capital gains. 

All
participants are encouraged to consult with a tax professional before agreeing to forgo any bonus payments for Non-Qualified Stock Options. Although the company believes that it is
reasonable to conclude that you will be not taxed on the amount of waived bonus payments, the tax rules governing when individuals are in "constructive receipt" of income are not clear.  The company's decision to provide you
with the opportunity to waive bonus payments should not be construed as tax advice.

6

 

Termination Event Guidelines  

	Issues
 
	 	Involuntary Termination or

Voluntary Resignation
 
	 	Death or Disability
 

	Length of Time to Exercise After Date Employment Terminates	 	Unless otherwise determined by the Compensation Committee, upon termination other than for retirement, death or disability, you have 3 months to exercise the options, or until option expiration, whichever is less. Death
during this period would allow the beneficiary 1 year to exercise the option.	 	Upon disability, you have 3 years to exercise vested options, or until option expiration, whichever is less. Death during this period would allow the beneficiary 1 year to exercise the option. If the options are not
exercised within these periods, it will be forfeited.
	 	 	 	 	Upon death, your beneficiary has 1 year to exercise the options or until option expiration, whichever is less. If the options are not exercised within these periods, it will be forfeited.

Other Information  

All
elections are irrevocable and subject to the approval of the Compensation Committee of the Board of Directors of UNOVA. 

Participation
does not constitute a commitment by UNOVA or any affiliate of guaranteed or continued employment for any period of time or a commitment to pay bonus. 

Available Information  

The
Company is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance therewith files, reports, proxy statements and other
information with the Securities and Exchange Commission (the "Commission"). This Prospectus, which constitutes a part of the Registration Statement and the exhibits thereto for further information
with respect to the Company and the Common Stock. Such reports, proxy statements, Registration Statement and exhibits and other information omitted from this Prospectus can be inspected and copied at
the public reference facilities maintained by the Commission at 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549, and at its regional Offices located at Seven World Trade Center, New York,
New York 10048 and Northwestern Atrium Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-2511. Copies of such material can be obtained at prescribed rates from the
Public Reference Section of the Commission, 450 Fifth Street, N.W., Judiciary Plaza, Washington, D.C, 20549. Such reports and proxy statements may also be inspected at the offices of the New York
Stock Exchange, Inc., 20 Broad Street, New York, New York 10005. 

Incorporation of Certain Documents by Reference  

The
Annual Report of the Company on Form 10-K for the year ended December 31, 2000, the Quarterly Reports of the Company on Form 10-Q for the periods ended
March 31, June 30 and September 30, 2001, the Current Reports of the Company on Form 8-K, dated January 21, March 5, 

7

 

April 21 and July 22, 2001, and the registration statement of the Company on Form 8-A, dated March 24, 1992 are incorporated herein by reference into this
Prospectus. All documents filed by the Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of this Prospectus and prior to the termination of the
offering made hereby shall be deemed to be incorporated by reference into this Prospectus and to be made a part hereof from the respective dates of filing of such documents. Any statement contained
herein, or in a document incorporated or deemed to be incorporated by reference herein, shall be deemed to be modified or superseded for purposes of the Registration Statement and this Prospectus to
the extent that a statement contained herein or in any subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such
statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of the Registration Statement or this Prospectus. 

Copies
of the above documents (other than exhibits to such documents unless such exhibits are specifically incorporated by reference into such documents) may be obtained upon request without charge
from UNOVA, Inc., 21900 Burbank Boulevard, Suite 300, Woodland Hills, CA 91367-7418, Attention: Investor Relations. 

Examples of Potential Investment Growth  

Examples
of potential investment growth under the cash and stock options purchase alternatives are presented on the following pages. These examples do not in any way represent the Company's
expectations or projections for share price movement; rather, they represent arbitrary percentages used for illustrative purposes only. Actual gains, if any, upon future exercise of these options will
depend on the actual performance of the Company's common stock in the market and the continued employment of the individual holding the option through its vesting period. 

It
is also important to keep in mind that all examples are presented before the impact of taxes are considered. Obviously, cash bonuses, investment
earnings and option gains would all be subject to taxation. 

For
illustrative purposes only, the company has assumed a $4 average price of common stock on the date of grant. 

Example 1—Receive a $10,000 Cash Bonus  

If
you invest your (tax deferred) bonus in a fixed rate investment fund, it may earn $2,763 in 5 years1, as illustrated below. 

	 
	 	Date
	 	Original Bonus
	 	Cumulative

Earnings1
	 	Total

Investment1

	Receive a $10,000 2001 Bonus2	 	4/15/2002	 	$	10,000	 	 	 	 	$	10,000
	 	 	4/15/2003	 	 	 	 	$	500	 	$	10,500
	 	 	4/15/2003	 	 	 	 	$	1,025	 	$	11,025
	 	 	4/15/2004	 	 	 	 	$	1,576	 	$	11,576
	 	 	4/15/2005	 	 	 	 	$	2,155	 	$	12,155
	 	 	4/15/2006	 	$	10,000	 	$	2,763	 	$	12,763

	1
	Increase
in value is due to earnings on investment. The example assumes 5% return. Actual investment return will vary. 
	2
	For
illustrative purposes, example shows bonus pay date as April. Actual pay date will be different. 

8

 

Example 2—Forgo a $10,000 Bonus for UNOVA Stock Options  

If
the $10,000 cash bonus were forgone for options, it would result in a grant of 10,000 option with an assumed grant price of $4 (computed as 1 × $10,000). The following
table illustrates the value given various stock price scenarios. 

	 
	 	Potential Stock Price Growth Rates

	 
	 	Less than 0%
	 	5%
	 	10%
	 	15%

	Date
	 	Market

Value of

UNOVA

stock3
	 	Vested

Stock

Options

Value

(before

tax)1
	 	Market

Value of

UNOVA

stock
	 	Vested

Stock

Options

Value

(before

tax)
	 	Market

Value of

UNOVA

stock
	 	Vested

Stock

Options

Value

(before

tax)
	 	Market

Value of

UNOVA

stock
	 	Vested

Stock

Options

Value

(before

tax)

	4/15/2002	 	$	4	 	$	0	 	$	4.00	 	$	0	 	$	4.00	 	$	0	 	$	4.00	 	$	0
	4/15/2003	 	$	4	 	$	0	 	$	4.20	 	$	2,000	 	$	4.40	 	$	4,000	 	$	4.60	 	$	6,000
	4/15/2004	 	$	4	 	$	0	 	$	4.40	 	$	4,100	 	$	4.84	 	$	8,400	 	$	5.29	 	$	12,900
	4/15/2004	 	$	4	 	$	0	 	$	4.63	 	$	6,305	 	$	5.32	 	$	13,240	 	$	6.08	 	$	20,835
	4/15/2005	 	$	4	 	$	0	 	$	4.86	 	$	8,620	 	$	5.86	 	$	18,564	 	$	7.00	 	$	29,960
	4/15/2006	 	$	4	 	$	0	 	$	5.11	 	$	11,051	 	$	6.44	 	$	24,420	 	$	8.05	 	$	40,454

For example, if the UNOVA stock price increases 10% each year, and you choose to exercise your options in April of 2006, your options may be worth $24,420  before tax, $14,420 more than
the original cash bonus and $11,657 more than the original cash bonus with 5 years of investment income (assuming
the bonus was distributed to a tax deferred account such as a 401(k)). 

	3
	If
the Market Value of UNOVA stock is less than or equal to the strike/purchase price, (0% or less stock price growth rate), then the stock options have no value at that
time. 

9

 

Election Form

December 21, 2001  

2001 Waiver  

        UNOVA

Irrevocable Election to Waive a

Portion of Employee's 2001 Bonus Payment and 2002

Salary Pursuant to the

UNOVA Senior Management Deferred Bonus Program

	1.
	I
elect that                        % (in increments of 10% to a maximum of 50%) of my 2001 bonus will be waived in exchange for
nonqualified stock options pursuant to the UNOVA Election to
Receive Employee Stock Options in Lieu of Certain Cash Compensation Payable to UNOVA Officers.

	2.
	I
elect that an additional                        % (in increments of 10% to a maximum of 50%) of my 2002 salary on January 1,
2002will be waived in exchange for nonqualified stock
options pursuant to the UNOVA Election to Receive Employee Stock Options in Lieu of Certain Cash Compensation Payable to UNOVA Officers. 

I
understand that: 

	•
	This
election is irrevocable and subject to the approval of the Compensation and Benefits Committee of the Board of Directors of UNOVA (the "Committee").

	•
	This
election shall entitle me to a number of nonqualified stock options in an amount determined by multiplying the dollar amount of the annual salary waived
and the dollar amount of the actual 2001 bonus amount waived by 1. The resulting product is the number of UNOVA stock options which will be at the then fair market value of UNOVA stock on the date
such nonqualified stock options are granted to me.

	•
	Neither
this election nor any action taken by the Compensation Committee pursuant to the Plan or the UNOVA Election to Receive Employee Stock Options in Lieu
of Certain Cash Compensation Payable to UNOVA Officers Agreement shall be construed as giving any employee or any other person any right to a bonus payment or any right to continue to be employed by
or perform services for the Company or any Affiliate, and the right to terminate the employment of or performance of service by any participants at any time and for any reasons is specifically
reserved. 

	

 	
 	

 	
 	

 Print Name of Employee
	

 	
 	

 	
 	

 Employee's Signature
	

 	
 	

 	
 	

 Date

10

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Exhibit 10.21    
  

AGREEMENT  

This
Agreement, dated as of July 31, 2001, is made between UNOVA, Inc., a Delaware corporation (hereinafter called the "Company"), and Alton J. Brann (hereinafter called "Brann"). 

RECITALS  

        1.    Brann
desires to retire from the office of Chairman of the Board of the Company effective July 31, 2001, and to resign as a member of the Company's Board of
Directors on that date. 

        2.    The
Company's Board of Directors has indicated that it is willing to accept such resignations. 

        3.    The
Supplemental Executive Retirement Agreement dated as of October 31, 1997, between the Company and Brann, as subsequently amended through the date hereof (as so
amended, the "SERA"), provides that Brann may commence receiving a Retirement Benefit (as defined in the SERA) on or after attaining age 60. 

        4.    The
amount of Brann's Retirement Benefit under the SERA is determined, in part, by Brann's age at retirement. 

        5.    Brann
will be age 59 years and seven months at his proposed retirement date of July 31, 2001. 

        6.    Brann
has proposed that he surrender to the Company for cancellation all employee stock options to purchase shares of the Company's Common Stock presently held by Brann
in exchange for the Company's agreement that, for purposes of the calculation of the amount of his Retirement Benefit under the SERA and the date on which payments may commence, Brann shall be deemed
to have reached the age of 60 as of July 31, 2001. 

        7.    The
Board of Directors of the Company desires to accept Brann's proposal. 

In
consideration of the foregoing, the parties agree as follows: 

        (a)  Brann
hereby agrees to surrender, assign, and transfer to the Company on July 31, 2001, for cancellation all stock options, whether or not then exercisable, held
by Brann or by any entity, including any family trust, to which Brann may have transferred such options, which options were granted under the UNOVA, Inc. 1997 Stock Incentive Plan and under the
UNOVA, Inc. 1999 Stock Incentive Plan as more specifically listed and set forth in Exhibit A hereto. Brann agrees to execute and deliver to the Company such documents of assignment or
other instruments as may be necessary or appropriate to effectuate the surrender for cancellation of such options and to file with the Securities and Exchange Commission and the New York Stock
Exchange any such forms or other documents as in the opinion of the Company's General Counsel may be required or desirable. 

        (b)  Brann
represents and warrants that all options described in paragraph (a) are held either by Brann in his individual capacity or by Alton J. Brann and Anna J.
Brann, Trustees of the Brann Revocable Trust created UTD April 7, 2000, and that such Trust has consented to this Agreement by its Trustees in a manner consistent with the terms of such Trust. 

        (c)  Brann
and the Company stipulate and agree that Brann's Retirement Benefit under the SERA will be computed in accordance with the following provisions: Brann's Average
Earnings (as defined in the SERA) will be computed in accordance with the methodology set forth in the SERA and such Average Earnings will be multiplied by 47.5%, which is the factor applicable to
Brann if he had attained age 60 and been credited with 25 or more years of service. The amount so determined shall be reduced by 12%, which represents a reduction at the rate of 1/2 of
1% for each month which would elapse between the date on which Brann shall attain the age of 60 and the date on which Brann shall 

-1-

 

attain the age of 62, all in accordance with the provisions of the SERA. The Offset Amount (as that term is defined in the SERA) shall then be subtracted from the amount computed pursuant to the
foregoing sentence. The resulting Retirement Benefit shall be paid in monthly installments commencing on August 1, 2001, and shall be paid as a 100% joint and survivor annuity representing the
Actuarial Equivalent of the amount determined (as a single life annuity) in accordance with this paragraph (c). 

        (d)  Brann
and the Company each stipulate, agree, and understand that Brann will request commencement of payment of his retirement benefits under the UNOVA Pension Plan and
the UNOVA, Inc. Restoration Plan as of the first date payments may commence under the terms of such plans (which dates would be August 1, 2001, under the terms of the UNOVA Pension Plan
and the first day of the month following the date Brann actually attains the age of 62 under the terms of the UNOVA, Inc. Restoration Plan). Brann's benefits under these plans will be
determined in accordance with the terms of such two plans with reductions, where applicable, in the amount of the benefits to take into account reductions attributable to the commencement of payments
on the earliest allowable dates. Thus the assumed retirement age of 60 utilized for purposes of computation of Brann's SERA benefit will play no role in the determination of benefits under the UNOVA
Pension Plan or the UNOVA, Inc. Restoration Plan. The calculation of those components of the Offset Amount (as that term is used in the SERA) attributable to benefits which Brann receives under
these two plans (or which he could have received assuming full participation at all times of eligibility) (but excluding any Part II benefits payable under the UNOVA, Inc. Restoration
Plan) will be calculated in accordance with the terms of the SERA and in accordance with this paragraph (d). 

        (e)  As
provided in Article VI of the UNOVA, Inc. Management Incentive Compensation Plan, Brann shall be entitled to receive that portion of any Bonus for which
he may qualify under the terms of such Plan (based on the degree to which Performance Goals applicable to Brann are satisfied) determined by multiplying the total amount of such Bonus by
7/12. 

        (f)    The
following provisions of the SERA are hereby incorporated by reference in this Agreement, mutatis mutandis:
Section 9.3, Section 10.2, Section 10.3, Section 10.4, Section 10.5, Section 10.6, and Section 10.7. 

The
parties have signed this Agreement as of the day and date first above written. 

	 	 	UNOVA, INC.
	

 	
 	

By	
 	

/s/  DANIEL S. BISHOP      

	 	 	 	 	 
	 	 	/s/  ALTON J. BRANN      
 Alton J. Brann

Alton
J. Brann and Anna J. Brann, not in their individual capacities but as Trustees of the Brann Revocable Trust created UTD April 7, 2000, hereby ratify the foregoing Agreement and agree that
such Trust shall be bound by the terms thereof. 

	/s/  ALTON J. BRANN, TRUSTEE      
 Alton J. Brann, Trustee
	 	 	 
	/s/  ANNA J. BRANN, TRUSTEE      
 Anna J. Brann, Trustee

-2-

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Exhibit 10.21

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