Document:

Performance Unit  Agreement

 Exhibit 10.31 
  
 

 
  
 PERFORMANCE
UNIT AGREEMENT 
  

							
	 GRANTEE
 NAME

	 	 NUMBER OF
 UNITS
 GRANTED

	 	 GRANT
 DATE

	 	 PERFORMANCE
 MEASUREMENT
 DATE

	«Full_Name»	 	«Units»	 	«Grant_Date»	 	«Performance_Date»

  
 I, «Full_Name», Social
Security #«SSN», hereby accept the Equity-based Performance Units set forth in this Performance Unit Agreement, reflecting the grant on «Grant_Date» of «Units» units (“Performance Unit Agreement”) and
agree to comply with the terms and conditions of the Performance Unit Agreement and of the Plan referenced in the Performance Unit Agreement. 
  
 By signing this cover sheet, you agree to all of the terms and conditions described in the attached Performance Unit Agreement and the Plan referenced therein.

  

			
	Grantee:	 	  

	 	 	(Signature)
		
	Company:	 	  

	 	 	Brian R. Gamache
	 	 	Chief Executive Officer

  
 PLEASE RETURN A
COPY OF THIS SIGNED AGREEMENT TO: 
 WMS – Legal Department 
 Waukegan Office 
  
 PLEASE RETAIN THE ORIGINALLY SIGNED AGREEMENT FOR YOUR RECORDS 
  
 This document constitutes part of a prospectus covering securities 
 that have been registered under the Securities Act of 1933. 

 

 
  
 PERFORMANCE
UNIT AGREEMENT 
  
 This
Performance Unit Agreement (the “Performance Unit Agreement”) will evidence the grant to you on the Grant Date above approved by the Compensation Committee of the Board of Directors of WMS Industries Inc. (the “Company”) and
ratified by the Board of Directors of «Units» units (the “Units”) under the Company’s 2005 Incentive Plan (the “Plan”). These Units are issued in accordance with and is subject to and conditioned upon all of the
terms and conditions of this Performance Unit Agreement and the Plan as amended from time to time, provided, however, that no future amendment or termination of the Plan shall, without your consent, alter or impair any of your rights or obligations
under the Plan, all of which are incorporated by reference in this Performance Unit Agreement as if fully set forth herein. 
  
 1. Performance Goals. The Company has set: 
  

	 	a.	A performance period (the “Performance Period”) commencing on «Performance Period Start Date» and ending on «Performance_Date» (the
“Performance Measurement Date”). 

  

	 	b.	Performance goal(s) (the “Performance Goal(s)”) set forth on Exhibit A attached hereto and incorporated herein based on one or more of the following criteria: (1)
revenues; (2) earnings from operations, earnings before or after taxes, earnings before or after interest, depreciation, amortization, incentives, service fees or extraordinary or special items; (3) net income or net income per common share (basic
or diluted); (4) return on assets, return on net assets, return on investment, return on capital, or return on equity; (5) cash flow, free cash flow, cash flow return on investment, or net cash provided by operations; (6) economic value created or
added; (7) operating margin or profit margin; (8) stock price, dividends or total stockholder return; and (9) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration or value added, product
development or introduction, geographic business expansion goals, cost targets, debt reduction, customer satisfaction, employee satisfaction, information technology, and goals relating to acquisitions or divestitures of subsidiaries, affiliates or
joint ventures. 

  

 2 

	 	c.	A performance matrix set forth on Exhibit A attached hereto and incorporated herein specifying the payout percentage (“Payout Percentage”) based on actual results vs. the
Performance Goal(s). 

  
 2. Form and Timing of
Payment. The Units represent the right to a certain payout (“Payout”) equal to (a) the number of Units multiplied (b) by the base unit (“Base Unit”) set forth on Exhibit A hereto and additionally multiplied by (c) the Payout
Percentage. Such consideration shall be distributed to you as soon as practicable following the Performance Measurement Date; provided however, that no consideration shall be distributed unless and until the Compensation Committee determines the
Payout Percentage in accordance with the matrix. 
  
 3.
Termination of Employment. The Units shall terminate immediately if, during the Performance Period, your service or employment with the Company ceases for any reason. Notwithstanding the foregoing, the Units will not so terminate, if, during
the Performance Period, (a) you voluntarily terminate your service or employment with the Company (i) as a result of your permanent and total disability or (ii) with the written consent of the Company (which written consent expressly sets forth a
statement to the effect that you remain entitled to all or some portion of the Units) or (b) your service or employment is terminated by the Company for reasons other than for cause and the Company agrees in writing not to terminate all or any
portion of the Units. The Units shall not be affected by any change in your position of service or employment so long as you continue to be an employee or a director of, or a consultant or an advisor to, the Company. If you should die during your
service or employment with the Company within the Performance Period, on the Performance Measurement Date, your personal representatives or the person or persons to whom the Units shall pass by will or by the applicable laws of descent and
distribution, will be entitled to receive a pro-rata amount of the Payout based on the portion of the Performance Period that you were in the service of or employed with the Company. 
  
 4. Forfeiture. The Compensation Committee may cancel, suspend, withhold or otherwise limit or restrict the Units at
any time if you (i) are not in compliance with all applicable provisions of the Units or the Plan or (ii) engage in any activity inimical, contrary or harmful to the interests of the Company, including, but not limited to: (A) conduct related to the
your service or employment for which either criminal or civil penalties against you may be sought, (B) violation of any policies of the Company, including, without limitation, the Company’s insider trading policy or anti-harassment policies or
(C) participating in a hostile takeover attempt against the Company. 
  
 5. Change of Control. Notwithstanding any other provision herein, if a Change in Control (as defined in the Plan) shall occur during the Performance Period, then you shall be entitled to receive (a) if one of more of the Performance
Goals has not been met at the time of the Change in Control, at least the Payout you would have received if the Payout Percentage were equal to 100%, (b) if all of the Performance Goals have been met or exceeded at the time of the Change in Control,
the greater of (i) the Payout that you 

  

 3 

 
would have received if the Payout determination had been made on the date of the Change in Control date or (ii) the Payout determined on the Performance
Measurement Date or (c) a greater Payout based on the determination by the Compensation Committee, in its sole and absolute discretion of the Payout Percentage, on the date of the Change in Control. Termination of your employment following a Change
in Control will not terminate your right to receive the Payout set forth in this Section 5. 
  
 6. Restrictive Covenants. As a condition of and consideration for this grant of Units and in consideration for «Grant_Reason», you agree with the Company as follows: 
  
 a. Acknowledgments. You acknowledge that: 
  

	 	i.	The Company is engaged in the business of designing, developing, manufacturing, selling, leasing and distributing gaming devices (e.g., without limitation, video and reel spinning
slot machines, video poker games, video lottery terminals, local progressives and wide-area progressive systems), related hardware and software, as well as ancillary products associated with such gaming devices, including without limitation
marketing materials, chairs, and signage (“Business”). 

  

	 	ii.	As an integral part of its business, the Company develops and maintains proprietary, confidential and trade secret information relating to both specific gaming machines and gaming
machines generally, as well as those being developed, its Business, including, but not limited to, information related to design, product development plans and strategies, techniques for game design and development, knowledge regarding and plans for
the integration of hardware and software, product maintenance and operations, game and bonus concepts, product and marketing strategies, new game concepts, mathematical formulas, license agreements, research regarding players’ behavior and
trends in the gaming industry and game themes, licensed and non-licensed themes, and strategic marketing. 

  

	 	iii.	The Company undertakes various efforts and measures to maintain the secrecy and confidentiality of its proprietary, confidential and trade secret information.

  

	 	iv.	You have or will have access to and knowledge of such proprietary, confidential and trade secret information. 

  

	 	v.	The scope of the covenants and restrictions on future employment set forth below, including with respect to time, territory and industry are reasonable and fair and are necessary
for the protection of the Company’s proprietary, confidential and trade secret information. 

  

 4 

	 	vi.	The scope of the covenants and restrictions contained herein in no way limit you from utilizing in future employment your general skills and abilities as well as the general and
non-proprietary, non-confidential and non-trade secret information and knowledge that you have or will obtain, acquire and develop in the course of employment with the Company. 

  

	 	vii.	For a period of one (1) year following termination of your employment with the Company, you would not be able to work for a competing Business anywhere in the world without using or
disclosing the proprietary, confidential or trade secret information of the Company, regardless of any measures taken by you or a future employer to protect and preserve the Company’s proprietary, confidential or trade secret information.

  

	 	viii.	You have both general and specific skills and abilities that are beneficial across many industries outside of the Business and which are located throughout the world, including
throughout the United States. Further, you represent and warrant that you have available sufficient means of support so that observance of and adherence to the covenants contained herein shall not deprive you of the ability to earn a livelihood or
support your dependents. 

  
 b. Covenants.
You hereby covenant and agree that during your employment by the Company and for a period of one (1) year following your voluntary termination of employment or any termination of your employment by the Company for cause or without cause: 

 

	 	i.	You shall not engage or participate in, or assist, advise or otherwise be connected with (including as an employee, independent contractor, owner, partner, member, shareholder,
officer, director, advisor, consultant, lender, supplier, agent or otherwise) a business located anywhere in the world which is engaged in the design, development, importation, manufacture, leasing, distribution and/or sale of gaming devices, or
component parts for gaming devices or related hardware and software, as well as ancillary products associated with such gaming devices, including without limitation marketing materials, chairs, and signage; provided, however, that nothing in this
agreement shall prevent you from acquiring or owning, as a passive investment, up to one percent (1%) of the outstanding voting securities of an entity engaged in a competing Business which securities are publicly traded in any recognized national
securities market; 

  

 5 

	 	ii.	You shall not solicit or attempt to solicit (i) any person, company or entity who is or has been a customer of the Company during the one (1) year period prior to the termination of
your employment at the Company to do business with any person, company or entity other than the Company, or (ii) solicit for employment or employ any employee of the Company or any person who is or was employed by the Company during the one (1) year
period prior to the termination of your employment at the Company, or take any actions which are calculated to persuade any such person to terminate his or her association with the Company. 

  
 c. Injunctive Relief. You acknowledge that any violation or
threatened violation by you of the covenants contained in this agreement would cause material and irreparable harm to the Company and that the Company would not have an adequate remedy at law because is will be difficult or impossible to establish
the full and precise monetary value of such damage. The Company agrees that, in addition to any and all other remedies available to it at law or in equity, the Company shall have the right to have your violation or threatened violation of any of the
covenants contained herein restrained by equitable relief, including, but not limited to, a temporary restraining order, a preliminary injunction, a permanent injunction, or such other alternative relief as may be appropriate, without the necessity
of the Company posting any bond. In the event you breach the covenants contained herein, the restricted period applicable to you shall be extended for the period of such breach. 
  
 d. Indemnification. You agree to indemnify, save and hold harmless the Company from and against any and all claims,
damages, losses and expenses (including reasonable attorneys’ and expert witness fees) resulting from or arising out of any breach by you of this Agreement, or incurred by the Company in enforcing this Agreement against you. 
  
 e. Other Limitations. The provisions of this Section 6 are in
addition to the award forfeiture provisions set forth in Section 10 of the Plan and in no way modify, amend or change such Plan provisions. 
  
 7. Severability. Should a court of competent jurisdiction deem any of the provisions in this Performance Unit Agreement to be unenforceable in any
respect, including a determination that the territorial, temporal and scope limitations (or any absence thereof) of Section 6 are impermissibly overbroad, it is the intention of the parties to this Performance Unit Agreement that this Performance
Unit Agreement be deemed, without further action on the part of the parties hereto, modified, amended and limited to the extent necessary to render the same valid and enforceable. It is further the parties’ intent that all provisions not deemed
to be overbroad shall be given their full force and effect. 

  

 6 

 
You acknowledge that you are freely, knowingly and voluntarily entering into this Agreement after having an opportunity for consultation with your own
independent counsel. 
  
 8. Choice of Law. This Performance
Unit Agreement shall be governed by and construed and interpreted in accordance with the substantive laws of the State of Delaware, without giving effect to any conflicts of law rule or principle that might require the application of the laws of
another jurisdiction. 
  
 9. Securities Laws. The Company
shall not be obligated to issue any shares pursuant to this Performance Unit Agreement if, in the opinion of counsel to the Company, the shares to be so issued are required to be registered or otherwise qualified under the Securities Act of 1933, as
amended, or under any other applicable statute, regulation or ordinance affecting the sale of securities, unless and until such shares have been so registered or otherwise qualified. 
  
 10. Income Taxes. It is understood that the Company may establish, from time to time, appropriate procedures to
provide for payment or withholding of such income or other taxes as may be required by law to be paid or withheld in connection with the Units. By the execution hereof, you hereby agree to pay to the Company or your Employer all such amounts
requested by the Company to permit the Company to take any tax deduction available to it resulting from the Units. You also agree to comply with any procedures established, from time to time, by the Company to ensure that the Company receives prompt
notice of the occurrence of any event which may create, or affect the timing or amount of, any obligation to pay or withhold any such taxes or which may make available to the Company any tax deduction resulting from the occurrence of such event.

  

 7 

 EXHIBIT A 
 PERFORMANCE GOAL(S), MATRIX AND BASE UNIT 
  
 PERFORMANCE GOAL(S): 
  
 MATRIX: 
  

																														
	 Cash
Flow %
of Target
Achieved

	  	 Percentage Payout
 %

	  	 
	 150%
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 140
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 130
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 120
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 110
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 100
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 90
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 80
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 70
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 60
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 50
	  	 	 	 	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	70	%	 	75	  	80	  	85	  	90	  	95	  	100	  	105	  	110	  	115	  	120	  	125	  	130	  	Revenue%
of Target
Achieved

  
 BASE
UNIT: One share of Common Stock 
  

 8Director Deferred Stock Unit Agreement

 Exhibit 10.32 
  
 DIRECTOR DEFERRED STOCK UNIT AGREEMENT 
  

					
	 GRANTEE
 NAME

	 	 NUMBER OF
 SHARES

	 	 GRANT
 DATE

	«Full_Name»	 	«Shares»	 	«Grant_Date»

  
 WMS Industries Inc. (the
“Company”) hereby awards to you the number of Deferred Stock Units shown above, effective as of the Grant Date. Each Deferred Stock Unit represents the obligation of the Company to deliver one share of the Company’s common stock, par
value $0.50 per share (the “Common Stock”) to you at the time provided in this Agreement. This award is granted to you pursuant to the Company’s 2005 Incentive Plan (the “Plan”), and is subject to the terms and conditions in
the Plan which are incorporated by reference in this Agreement as if fully set forth herein and the terms and conditions set forth below. Any capitalized, but undefined, term used in this Agreement shall have the meaning ascribed to it in the Plan.

  
 By signing this cover sheet, you agree to all of the terms and
conditions described in this Agreement and the Plan referenced herein. 
  

	
	WMS Industries Inc.
	  
  

	Brian R. Gamache
	President and Chief Executive Officer

  

	
	Accepted by Director:
	  
  

	«Full_Name»

  
 PLEASE SIGN
BOTH COPIES OF THIS AGREEMENT AND 
 RETURN (1) ORIGINALLY EXECUTED COPY WITHIN 30 DAYS TO: 
 WMS – Legal Department 
 Waukegan Office 
  
 PLEASE RETAIN THE
OTHER ORIGINALLY EXECUTED COPY FOR YOUR RECORDS. 
  
 This
is not a stock certificate or a negotiable instrument. 
  
 This document constitutes part of a prospectus covering securities 
 that have been registered under the
Securities Act of 1933. 

 TERMS AND CONDITIONS 
  
 1. Vesting; Transferability Restriction; Unsecured Obligation. Your Deferred Stock Units are fully vested at all times. Your Deferred
Stock Units are not transferable by you. Except as may be required by federal income tax withholding provisions or by the tax laws of any state, your interests (and the interests of your beneficiaries, if any) under this Agreement are not subject to
the claims of your creditors and may not be voluntarily or involuntarily sold, transferred, alienated, assigned, pledged, anticipated, or encumbered. Any attempt to sell, transfer, alienate, assign, pledge, anticipate, encumber, charge or otherwise
dispose of any right to benefits payable hereunder shall be void. Your Deferred Stock Units represent an unsecured promise by the Company to issue shares of Common Stock to you in the future. Your rights to your Deferred Stock Units are no greater
than that of other general, unsecured creditors of the Company. 
  
 2. Delivery
of Shares of Common Stock. Promptly after the termination of your service as a Director on the Company’s Board of Directors, the Company will deliver to you (or your beneficiary(ies) or personal representative, if you are deceased) shares
of Common Stock equal to the number of Deferred Stock Units granted herein. 
  
 3.
Death Beneficiary Designation. In the event of your death, the Company will issue the shares of Common Stock provided for herein to a beneficiary or beneficiaries (contingently, consecutively or successively) designated by you. You may
designate and change a beneficiary or beneficiaries from time to time. A beneficiary may be a trust. A beneficiary designation must be made in writing in a form prescribed by the Company and delivered to the Company while you are alive. If you do
not have a designated beneficiary surviving at the time of your death, any delivery of shares of Common Stock will be made to your surviving spouse, if any, and if you do not have a surviving spouse, then to your estate. 
  
 4. Cash Dividend Equivalents; Adjustments. If the Company pays a cash dividend on its
Common Stock, then, as soon as practical after such dividend is paid, the Company will pay you an amount in cash equal to the per share amount of such dividend multiplied by the number of Deferred Stock Units held by you as of the record date of
such dividend. If there is any change in the Common Stock by reason of stock dividends, split-ups, mergers, consolidations, reorganizations, combinations or exchanges of shares or the like, the number of Deferred Stock Units held by you shall be
adjusted appropriately so that the number of Deferred Stock Units held by you after such an event shall equal the number of shares of Common Stock a stockholder would own after such an event if the stockholder, at the time such an event occurred,
had owned shares of Common Stock equal to the number of Deferred Stock Units held by you immediately before such an event. Adjustments shall be made in whole shares of Common Stock, with fractional shares rounded up to the nearest whole share.

  
 5. No Stockholder Rights. You will not have any stockholder rights,
such as rights to vote or to receive dividends or other distributions, with respect to any Deferred Stock Units held by you. As a holder of Deferred Stock Units, you will have only the cash dividend equivalents and adjustment rights provided in this
Agreement. 

 
6. Securities Laws. The Company shall not be obligated to issue any Common Stock pursuant to this Agreement if, in the opinion of counsel to the
Company, the shares to be so issued are required to be registered or otherwise qualified under the Securities Act of 1933, as amended, or under any other applicable statute, regulation or ordinance affecting the sale of securities, unless and until
such shares have been so registered or otherwise qualified. 
  
 7. Choice of
Law. This Deferred Stock Unit Agreement shall be governed by and construed and interpreted in accordance with the substantive laws of the State of Delaware, without giving effect to any conflicts of law rule or principle that might require the
application of the laws of another jurisdiction. 
  
 8. No Right to Further
Grants. Deferred Stock Unit grants are within the discretion of the Plan Administrator, and no such grant entitles you to any further grants. 
  
 9. Interpretations Binding. Plan Administrator interpretations and determinations are binding and conclusive.

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