Document:

Exhibit 10.2

 

UNOVA, Inc.

6001 36th Avenue West

Everett, WA 98203-1264

 

UNOVA,
INC.

2001
STOCK INCENTIVE PLAN

INCENTIVE
STOCK OPTION AGREEMENT

 

	
   [Name and
  address]

  	
  Option Number:

  
	
   

  	
  Option Plan:

  	
  2001

  
	
   

  	
  Grant Date:

  
	
   

  	
  Option Shares:

  
	
   

  	
  Option Price:

  

 

1.         THIS AGREEMENT
sets forth the terms of Stock Options granted to you subject to the UNOVA, Inc.
2001 Stock Incentive Plan (the “Plan”).  As of the Grant Date indicated above, subject
to your acceptance of the terms and conditions hereof, UNOVA, Inc. (the “Company”) has granted to you Stock Options to purchase             
shares of the Common Stock of the Company (“Stock”) at the
purchase price of $            
per share.

 

Capitalized terms that are not defined herein shall
have the meanings assigned to such terms in the Plan.  The Plan shall control in the event there is
any express conflict between the Plan and this Agreement and with respect to
such matters as are not expressly covered herein.

 

In
order for this grant to become effective, you must sign and return to the Company’s
Secretary one copy of this Agreement [or accept it electronically as
instructed] within 30 days following the date at the end of this
Agreement.  In the event you fail to do
so, this Agreement shall be deemed canceled, null, and void.

 

2.         The options granted by this Agreement
are intended to be Incentive Stock Options, as that term is defined in Section
422 of the Internal Revenue Code of 1986, as amended; provided,
however, that to the extent the terms of these options, or any
action taken with respect thereto, fail to satisfy the requirements of Section
422, these options shall be Non-Qualified Stock Options, as that term is
defined in the Plan.

 

3.         The options granted hereunder shall,
subject to the provisions of the Plan, become exercisable in installments on
the dates set forth below and shall remain cumulatively exercisable until the
expiration date indicated:

 

	
  Number

  of Shares

  	
   

  	
  Date Options May

  First Be Exercised

  	
   

  	
  Expiration Date

  of Options

  	
   

  
	
   

  	
   

  	
  [Grant Date + 1 year]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 2 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 3 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 4 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 5 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  

 

 

4.         You hereby acknowledge
that the options granted hereby are subject to the terms and conditions of the Plan,
which is incorporated herein by reference, and you hereby acknowledge that you
have received or have access to a copy of the Plan.  You are also encouraged to review the Company’s
most recent Form 10-K and proxy statement, which may be found at www.unova.com.

 

5.       (a)  Subject to the
provisions of this Section 5, Stock Options then exercisable may be exercised,
in whole or in part, at any time during the option term by giving written
notice of exercise to the Company on the form furnished by the Company for that
purpose specifying the number of shares of Stock subject to the Stock Option to
be purchased.  Each exercise must
encompass at least one installment or 100 shares of Stock, whichever is less.

 

(b)  The option price of Stock to be purchased
upon exercise of any Stock Option shall be paid in full in cash in United
States dollars (by certified or bank check or such other instrument payable to
the order of “UNOVA, Inc.” as the Company may accept) or may also be paid in
the form of unrestricted Stock already owned by you for a period of at least
six months and based in any such instance on the Fair Market Value of the Stock
on the date the Stock Option is exercised.

 

(c)  In the discretion of the Committee, payment
for any shares subject to a Stock Option may also be made by delivering a
properly executed exercise notice to the Company, together with a copy of
irrevocable instructions to a broker to deliver promptly to the Company the
amount of sale or loan proceeds to pay the purchase price, and, if requested by
you or required by law to be withheld by the Company, the amount of any
federal, state, local and foreign withholding taxes.

 

(d)  No shares of Stock shall be issued until full
payment therefor has been made.  You
shall have all of the rights of a shareholder of the Company holding the Stock
that is subject to such Stock Option (including, if applicable, the right to
vote the shares and the right to receive dividends, if any) when you have given
written notice of exercise and have paid in full for such shares.

 

(e)  If as a result of any adjustment to the
shares or number of shares subject to this Agreement made pursuant to Section 3
of the Plan, any fractional share would be issuable under this Agreement or any
installment thereof, such fractional share shall be canceled without the
payment of any consideration to you.

 

6.         You may transfer any or all Non-Qualified Stock Options
granted under the Plan by way of gift to any family member, provided that any
such transferee shall agree in writing with the optionee and the Company, as a
condition to such transfer, to be bound by the provisions of all agreements and
other instruments, including without limitation, the Plan, and shall agree in
writing to such other terms as the Company may reasonably require to assure
compliance with applicable federal and state securities and other laws.  For purposes of the preceding sentence, “family
member” shall include any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationship, any person sharing your household (other than
a tenant or employee), a trust in which these persons have more than 50 percent
of the beneficial interest, a foundation in which these persons (or the
optionee) control the management of assets, and any other entity in which these
persons (or the

 

2

 

optionee) own more than
50 percent of the voting interests.  All
Stock Options shall be exercisable, subject to the terms of the Plan, only by
you, your guardian or legal representative, or any person to whom such option
is transferred pursuant to this paragraph, it being understood that the term “holder”
and “optionee” include such guardian, legal representative and other trustee.

 

7.       (a)  In the event of
your Termination of Employment due to death, any Stock Option held by you may
thereafter be exercised for a period of one year from the date of such death or
until the expiration of the stated term of such Stock Option, whichever period
is the shorter, in accordance with the following schedule:

 

	
  Time from Grant

  Date to Death

  	
   

  	
  Stock Options

  Exercisable by Estate

  
	
  Less than 1 year

  	
   

  	
  33%

  
	
  1 year to 2 years

  	
   

  	
  67%

  
	
  More than 2 years

  	
   

  	
  100%

  

 

(b)  In the event of your Termination of Employment
due to death, if any portion of the Incentive Stock Options granted hereby is
exercised after the expiration of the exercise periods that apply for purposes
of Section 422 of the Code, such portion of Stock Options will thereafter be
treated as Non-Qualified Stock Options.

 

8.         Subject to the provisions of
subparagraph 10(b) below, in the event of your Termination of Employment by
reason of Disability, any Stock Option held by you may thereafter be exercised
by you, to the extent it was exercisable at the time of termination, for a
period of three years from the date of such Termination of Employment or until
the expiration of the stated term of such Stock Option, whichever period is the
shorter; provided, however, that if you die within such period, any unexercised
Stock Option held by you shall, notwithstanding the expiration of such period,
continue to be exercisable to the extent to which it was exercisable at the
time of death for a period of 12 months from the date of such death or until
the expiration of the stated term of such Stock Option, whichever period is the
shorter.  “Disability” means your permanent and total disability as more
specifically defined in the Plan.  In the
event of Termination of Employment by reason of Disability, if any portion of
the Incentive Stock Options granted hereby is exercised after the expiration of
the exercise periods that apply for purposes of Section 422 of the Code, such
portion of Stock Options will thereafter be treated as Non-Qualified Stock
Options.

 

9.         Subject to the provisions of subparagraph 10(b) below, in
the event of your Termination of Employment by reason of Retirement, any Stock
Option held by you may thereafter be exercised by you (or your estate or
personal representative), to the extent it was exercisable at the time of such
Retirement, until the expiration of the stated term of such Stock Option or, if
earlier, 12 months from the date of your death. 
“Retirement” means retirement from
active employment with the Company or a Subsidiary (i) at or after age 65 or
(ii) pursuant to the early retirement provisions of the basic pension plan of
the Company or a Subsidiary under which you may receive retirement
benefits.  In the event of Termination of
Employment by reason of Retirement, if any portion of the Incentive Stock
Options granted hereby is exercised after the expiration of the exercise
periods that apply for purposes of Section 422 of the Code, such portion of
Stock Options will thereafter be treated as Non-Qualified Stock Options.

 

3

 

10.       (a) 
If you incur a Termination of Employment for any reason other than
death, Disability, or Retirement, any Stock Option held by you, to the extent
it was exercisable at the time of termination, may be exercised for the lesser
of three months from the date of such Termination of Employment or the balance
of such Stock Option’s term; provided, however,
that if you die within such three-month period, any unexercised Stock Option
held by you shall, notwithstanding the expiration of such three-month period,
continue to be exercisable to the extent to which it was exercisable at the
time of death for a period of 12 months from the date of such death or until
the expiration of the stated term of such Stock Option, whichever period is the
shorter.  Notwithstanding the foregoing,
after a Change in Control, Stock Options shall remain exercisable following a
Termination of Employment described in this Section 10 for seven months
following such termination or until expiration of the stated term of such Stock
Option, whichever period is shorter.

 

(b)  “Termination of Employment”
means the termination of your employment with the Company and any
Subsidiary.  You shall also be deemed to
incur a Termination of Employment if the Subsidiary ceases to be such a
Subsidiary, and if you do not immediately thereafter become an employee of the
Company or another Subsidiary.  Temporary
absences from employment because of illness, vacation, or leave of absence and
transfers among the Company and its Subsidiaries shall not be considered
Terminations of Employment.  If so
determined by the Committee, you shall be deemed not to have incurred a
Termination of Employment following Retirement or Disability if you enter into
a contract with the Company or any Subsidiary providing for the rendering by
you of consulting services to the Company or such Subsidiary on terms approved
by the Committee; however, your Termination of Employment shall be deemed to
occur when such contract ceases to be in effect.  In the event of such Retirement or Disability
and subsequent assumption by you of the status of a consultant, any portion of
the Incentive Stock Options granted hereby which is exercised after the
applicable period for purposes of Section 422 of the Code shall be treated as
Non-Qualified Stock Options.

 

11.       No later than the date as of which an
amount first becomes includable in your gross income for federal income tax
purposes with respect to any Stock Option granted by this Agreement, you shall
pay to the Company, or make arrangements satisfactory to the Company regarding the
payment of, any federal, state or local, and foreign taxes of any kind required
by law to be withheld by the Company with respect to such amount.  The minimum amount of statutory withholding
obligations may be settled with unrestricted Stock having a Fair Market Value
on the date of the exercise of the Stock Option equal to the amount of taxes required
by law to be withheld, including Stock issuable upon exercise of a Stock Option
that gives rise to the withholding requirement. 
Tax withholdings in excess of the statutory minimum amount may not be
satisfied in Stock but may, if desired, be paid in cash.  The obligations of the Company under the Plan
shall be conditional on such payment or arrangements having been made, and the
Company and its Subsidiaries shall, to the extent permitted by law, have the
right to deduct any such taxes from any payment otherwise due you.

 

12.       The grant of Stock Options and other
Stock awards under the Plan are made from time to time in the sole discretion
of the Committee.  The grant of a Stock
Option or other award does not assure an additional award at any future
time.  You acknowledge that future grants
under the Plan, if any, will be at the sole discretion of the Committee,
including the timing of any grant, the number of options, the vesting
provisions, and the exercise price. The grant of a Stock Option to you in any
year shall give you neither any right to similar grants in future years nor any
right to be retained in the employ of the Company or its Subsidiaries, such employment
being terminable to the same extent as if the Plan and this Agreement were not
in effect.  The

 

4

 

right and power of the
Company and its Subsidiaries to dismiss or discharge you is specifically and
unqualifiedly unimpaired by this Agreement.

 

You acknowledge that your
participation in the Plan is voluntary and the value of the Stock Option is an
extraordinary item of compensation outside the scope of any employment contract
you may have, unless such contract specifically provides otherwise.  As such, you understand that any Stock Option
is not part of normal or expected compensation for purposes of calculating any
severance, resignation, redundancy, end of service payments, bonuses, long-term
service awards, pension or retirement benefits, or similar payments.

 

13.       If employed by a Subsidiary of the
Company, you authorize and direct such Subsidiary or any agent of the Company
or such Subsidiary administering the Plan or providing plan recordkeeping services
to disclose to the Company or any of its Subsidiaries such information and data
as it shall request in order to facilitate the grant of Stock Options and the
administration of the Plan, and you waive any data privacy rights you may have
with respect to such information.  By
accepting this Agreement, you authorize the Company and the Subsidiary by which
you are employed, if applicable, to store and transmit such information in
electronic form.

 

14.       It is the present practice of the Company
to provide participants in the Plan, solely as a courtesy and not as a Company
policy, with written or oral notification of the imminent expiration of any
Stock Option having monetary value.  You
acknowledge that the Company and its Subsidiaries and agents shall have no
liability or responsibility in the event you should fail to receive any such “courtesy
notice” and your Stock Option expires unexercised.  You acknowledge that the obligation to
monitor the schedule of exercisability and expiration of options awarded under this
Agreement, and to procure current quotations regarding the market value of the
Stock, is solely your obligation and not that of the Company or any Subsidiary
by which you are employed or the agents of either of them.

 

15.       Each notice relating to this Agreement
shall be in writing and delivered in person or by mail to the Company at its
office, 6001 36th Avenue West, Everett, WA 98203-1264, to the
attention of the Company’s Secretary, or at such other address as may be
furnished to you in writing.  All notices
to you or other person or persons then entitled to exercise any right pursuant
to this Agreement shall be delivered to you or such other person as you or such
other person may specify in writing to the Secretary of the Company by a notice
delivered in accordance with this paragraph.

 

16.       The terms and conditions of this
Agreement and of the Plan incorporated by reference herein comprise the whole
terms and conditions between you and the Company with respect to the subject
matter of this Agreement and shall be governed by and construed in accordance
with the laws of the State of Delaware, United States of America.  The Committee may amend the terms and
conditions of this Agreement at any time, prospectively or retroactively, to
the extent permitted by Section 9 of the Plan.

 

17.       This Agreement shall inure to the benefit
of and be binding upon each successor of the Company and, to the extent
specifically provided therein and in the Plan, shall inure to the benefit of
and shall be binding upon your heirs, legal representatives, and successors and
upon any person to whom a transfer of a Stock Option permitted by paragraph 6
of this Agreement has been made.

 

5

 

IN WITNESS WHEREOF, this
Agreement has been executed by you and by the Company through its duly
authorized officer, all as of the Grant Date indicated above.

 

DATE:

 

	
   

  	
  UNOVA, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  IMPORTANT

  	
   

  
	
  PLEASE ACCEPT ELECTRONICALLY OR

  	
   

  
	
  SIGN AND RETURN PROMPTLY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6Exhibit 10.3

 

UNOVA, Inc.

6001 36th Avenue West

Everett, WA 98203-1264

 

UNOVA,
INC.

2001
STOCK INCENTIVE PLAN

NON-QUALIFIED
STOCK OPTION AGREEMENT

 

	
   

  	
   

  	
   

  
	
  [Name and address]

  	
  Option Number:

  	
   

  
	
   

  	
  Option Plan:

  	
  2001

  
	
   

  	
  Grant Date:

  	
   

  
	
   

  	
  Option Shares:

  	
   

  
	
   

  	
  Option Price:

  	
   

  

 

1.         THIS AGREEMENT
sets forth the terms of Stock Options granted to you subject to the UNOVA, Inc.
2001 Stock Incentive Plan (the “Plan”).  As of the Grant Date indicated above, subject
to your acceptance of the terms and conditions hereof, UNOVA, Inc. (the “Company”) has granted to you Stock Options to purchase              
shares of the Common Stock of the Company (the “Stock”)
at the purchase price of $             
per share.

 

Capitalized terms that
are not defined herein shall have the meanings assigned to such terms in the
Plan.  The Plan shall control in the
event there is any express conflict between the Plan and this Agreement and
with respect to such matters as are not expressly covered herein.

 

In order
for this grant to become effective, you must sign and return to the Company’s
Secretary one copy of this Agreement [or accept it electronically as
instructed] within 30 days following the date at the end of this
Agreement.  In the event you fail to do
so, this Agreement shall be deemed canceled, null, and void.

 

2.         The options granted by this Agreement
are intended to be Non-Qualified Stock Options, as that term is defined in the
Plan.

 

3.         The options granted hereunder shall,
subject to the provisions of the Plan, become exercisable in installments on
the dates set forth below and shall remain cumulatively exercisable until the
expiration date indicated:

 

	
  Number

  of Shares

  	
   

  	
  Date Options May

  First Be Exercised

  	
   

  	
  Expiration Date

  of Options

  	
   

  
	
   

  	
   

  	
  [Grant Date + 1 year]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 2 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 3 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 4 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  
	
   

  	
   

  	
  [Grant Date + 5 years]

  	
   

  	
  [Grant Date + 10 years]

  	
   

  

 

 

4.         You hereby acknowledge that the options
granted hereby are subject to the terms and conditions of the Plan, which is
incorporated herein by reference, and you hereby acknowledge that you have
received or have access to a copy of the Plan. 
You are also encouraged to review the Company’s most recent Form 10-K
and proxy statement, which may be found at www.unova.com.

 

5.         (a)  Subject to the provisions of this Section 5,
Stock Options then exercisable may be exercised, in whole or in part, at any
time during the option term by giving written notice of exercise to the Company
on the form furnished by the Company for that purpose specifying the number of
shares of Stock subject to the Stock Option to be purchased.  Each
exercise must encompass at least one installment or 100 shares of Stock,
whichever is less.

 

(b)  The option price of Stock to be purchased
upon exercise of any Stock Option shall be paid in full in cash in United
States dollars (by certified or bank check or such other instrument payable to
the order of “UNOVA, Inc.” as the Company may accept) or may also be paid in
the form of unrestricted Stock already owned by you for a period of at least
six months and based in any such instance on the Fair Market Value of the Stock
on the date the Stock Option is exercised.

 

(c)  In the discretion of the Committee, payment
for any shares subject to a Stock Option may also be made by delivering a
properly executed exercise notice to the Company, together with a copy of
irrevocable instructions to a broker to deliver promptly to the Company the
amount of sale or loan proceeds to pay the purchase price, and, if requested by
you or required by law to be withheld by the Company, the amount of any
federal, state, local and foreign withholding taxes.

 

(d)  No shares of Stock shall be issued until full
payment therefor has been made.  You
shall have all of the rights of a shareholder of the Company holding the Stock
that is subject to such Stock Option (including, if applicable, the right to
vote the shares and the right to receive dividends, if any) when you have given
written notice of exercise and have paid in full for such shares.

 

(e)  If as a result of any adjustment to the
shares or number of shares subject to this Agreement made pursuant to Section 3
of the Plan, any fractional share would be issuable under this Agreement or any
installment thereof, such fractional share shall be canceled without the
payment of any consideration to you.

 

6.         You may transfer any or all Non-Qualified Stock Options
granted under the Plan by way of gift to any family member, provided that any such transferee shall agree in writing
with the optionee and the Company, as a condition to such transfer, to be bound
by the provisions of all agreements and other instruments, including without
limitation, the Plan, and shall agree in writing to such other terms as the
Company may reasonably require to assure compliance with applicable federal and
state securities and other laws.  For
purposes of the preceding sentence, “family member” shall include any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationship, any person sharing your household (other than a tenant or
employee), a trust in which these persons have more than 50 percent of the
beneficial interest, a foundation in which these persons (or the optionee)
control the management of assets, and any other entity in which these persons
(or the optionee) own more than 50 percent of the voting interests.  All Stock Options shall be

 

2

 

exercisable, subject to
the terms of the Plan, only by you, your guardian or legal representative, or
any person to whom such option is transferred pursuant to this paragraph, it
being understood that the term “holder” and “optionee” include such guardian,
legal representative and other trustee.

 

7.         In the event of your Termination of Employment due to death,
any Stock Option held by you may thereafter be exercised for a period of one
year from the date of such death or until the expiration of the stated term of
such Stock Option, whichever period is the shorter, in accordance with the
following schedule:

 

	
  Time from Grant

  Date to Death

  	
   

  	
  Stock Options

  Exercisable by Estate

  	
   

  
	
  Less than 1 year

  	
   

  	
  33%

  	
   

  
	
  1 year to 2 years

  	
   

  	
  67%

  	
   

  
	
  More than 2 years

  	
   

  	
  100%

  	
   

  

 

8.         Subject to the provisions of subparagraph 10(b) below, in
the event of your Termination of Employment by reason of Disability, any Stock
Option held by you may thereafter be exercised by you, to the extent it was
exercisable at the time of termination, for a period of three years from the
date of such Termination of Employment or until the expiration of the stated
term of such Stock Option, whichever period is the shorter; provided, however,
that if you die within such period, any unexercised Stock Option held by you
shall, notwithstanding the expiration of such period, continue to be
exercisable to the extent to which it was exercisable at the time of death for
a period of 12 months from the date of such death or until the expiration of
the stated term of such Stock Option, whichever period is the shorter.  “Disability”
means your permanent and total disability as more specifically defined in the
Plan.

 

9.         Subject to the provisions of subparagraph 10(b) below, in
the event of your Termination of Employment by reason of Retirement, any Stock
Option held by you may thereafter be exercised by you (or your estate or
personal representative), to the extent it was exercisable at the time of such
Retirement, until the expiration of the stated term of such Stock Option or, if
earlier, 12 months from the date of your death. 
“Retirement” means retirement from active
employment with the Company or a Subsidiary (i) at or after age 65 or (ii)
pursuant to the early retirement provisions of the basic pension plan of the
Company or a Subsidiary under which you may receive retirement benefits.

 

10.     (a) 
If you incur a Termination of Employment for any reason other than
death, Disability, or Retirement, any Stock Option held by you, to the extent
it was exercisable at the time of termination, may be exercised for the lesser
of three months from the date of such Termination of Employment or the balance
of such Stock Option’s term; provided, however,
that if you die within such three-month period, any unexercised Stock Option
held by you shall, notwithstanding the expiration of such three-month period,
continue to be exercisable to the extent to which it was exercisable at the
time of death for a period of 12 months from the date of such death or until
the expiration of the stated term of such Stock Option, whichever period is the
shorter.  Notwithstanding the foregoing,
after a Change in Control, Stock Options shall remain exercisable following a
Termination of Employment described in this Section 10 for seven months
following such termination or until expiration of the stated term of such Stock
Option, whichever period is shorter.

 

3

 

(b)  “Termination of Employment”
means the termination of your employment with the Company and any
Subsidiary.  You shall also be deemed to
incur a Termination of Employment if the Subsidiary ceases to be such a
Subsidiary, and if you do not immediately thereafter become an employee of the
Company or another Subsidiary.  Temporary
absences from employment because of illness, vacation, or leave of absence and
transfers among the Company and its Subsidiaries shall not be considered
Terminations of Employment.  If so
determined by the Committee, you shall be deemed not to have incurred a
Termination of Employment following Retirement or Disability if you enter into
a contract with the Company or any Subsidiary providing for the rendering by you
of consulting services to the Company or such Subsidiary on terms approved by
the Committee; however, your Termination of Employment shall be deemed to occur
when such contract ceases to be in effect.

 

11.       No later than the date as of which an
amount first becomes includable in your gross income for federal income tax
purposes with respect to any Stock Option granted by this Agreement, you shall
pay to the Company, or make arrangements satisfactory to the Company regarding
the payment of, any federal, state or local, and foreign taxes of any kind
required by law to be withheld by the Company with respect to such amount.  The minimum amount of statutory withholding
obligations may be settled with unrestricted Stock having a Fair Market Value
on the date of the exercise of the Stock Option equal to the amount of taxes
required by law to be withheld, including Stock issuable upon exercise of a
Stock Option that gives rise to the withholding requirement.  Tax withholdings in excess of the statutory
minimum amount may not be satisfied in Stock but may, if desired, be paid in
cash.  The obligations of the Company
under the Plan shall be conditional on such payment or arrangements having been
made, and the Company and its Subsidiaries shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment otherwise due
you.

 

12.       The grant of Stock Options and other
Stock awards under the Plan are made from time to time in the sole discretion
of the Committee.  The grant of a Stock
Option or other award does not assure an additional award at any future
time.  You acknowledge that future grants
under the Plan, if any, will be at the sole discretion of the Committee,
including the timing of any grant, the number of options, the vesting provisions,
and the exercise price. The grant of a Stock Option to you in any year shall
give you neither any right to similar grants in future years nor any right to
be retained in the employ of the Company or its Subsidiaries, such employment
being terminable to the same extent as if the Plan and this Agreement were not
in effect.  The right and power of the
Company and its Subsidiaries to dismiss or discharge you is specifically and
unqualifiedly unimpaired by this Agreement.

 

You acknowledge that your
participation in the Plan is voluntary and the value of the Stock Option is an
extraordinary item of compensation outside the scope of any employment contract
you may have, unless such contract specifically provides otherwise.  As such, you understand that any Stock Option
is not part of normal or expected compensation for purposes of calculating any
severance, resignation, redundancy, end of service payments, bonuses, long-term
service awards, pension or retirement benefits, or similar payments.

 

13.       If employed by a Subsidiary of the
Company, you authorize and direct such Subsidiary or any agent of the Company
or such Subsidiary administering the Plan or providing plan recordkeeping
services to disclose to the Company or any of its Subsidiaries such information
and data as it shall request in order to facilitate the grant of Stock Options
and the administration of the Plan, and you waive any data privacy rights you
may have with respect to such information. 
By accepting this Agreement, you authorize the Company and the
Subsidiary

 

4

 

by which you are
employed, if applicable, to store and transmit such information in electronic
form.

 

14.       It is the present practice of the Company
to provide participants in the Plan, solely as a courtesy and not as a Company
policy, with written or oral notification of the imminent expiration of any
Stock Option having monetary value.  You
acknowledge that the Company and its Subsidiaries and agents shall have no
liability or responsibility in the event you should fail to receive any such “courtesy
notice” and your Stock Option expires unexercised.  You acknowledge that the obligation to
monitor the schedule of exercisability and expiration of options awarded under this
Agreement, and to procure current quotations regarding the market value of the
Stock, is solely your obligation and not that of the Company or any Subsidiary
by which you are employed or the agents of either of them.

 

15.       Each notice relating to this Agreement
shall be in writing and delivered in person or by mail to the Company at its
office, 6001 36th Avenue West, Everett, WA 98203-1264, to the
attention of the Company’s Secretary, or at such other address as may be
furnished to you in writing.  All notices
to you or other person or persons then entitled to exercise any right pursuant
to this Agreement shall be delivered to you or such other person as you or such
other person may specify in writing to the Secretary of the Company by a notice
delivered in accordance with this paragraph.

 

16.     The terms
and conditions of this Agreement and of the Plan incorporated by reference
herein comprise the whole terms and conditions between you and the Company with
respect to the subject matter of this Agreement and shall be governed by and
construed in accordance with the laws of the State of Delaware, United States
of America.  The Committee may amend the
terms and conditions of this Agreement at any time, prospectively or
retroactively, to the extent permitted by Section 9 of the Plan.

 

17.       This Agreement shall inure to the benefit
of and be binding upon each successor of the Company and, to the extent
specifically provided therein and in the Plan, shall inure to the benefit of
and shall be binding upon your heirs, legal representatives, and successors and
upon any person to whom a transfer of a Stock Option permitted by paragraph 6
of this Agreement has been made.

 

IN
WITNESS WHEREOF, this Agreement has been executed by you and
by the Company through its duly authorized officer, all as of the Grant Date
indicated above.

 

DATE:

 

	
   

  	
  UNOVA, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  IMPORTANT

  	
   

  
	
  PLEASE ACCEPT ELECTRONICALLY OR

  	
   

  
	
  SIGN AND RETURN PROMPTLY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

5

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