Document:

Exhibit 10.4

 

UNOVA,
INC.

RESTRICTED
STOCK AGREEMENT

 

This
Restricted Stock Agreement (the “Agreement”) is
made as of the            day
of                             ,           ,
between UNOVA, Inc., a Delaware corporation (the “Company”),
and                                    
(the “Grantee”).

 

WHEREAS, the
UNOVA, Inc.                                              
(the  “Plan”) was
adopted by the Board of Directors of the Company on                                
and was approved by the shareholders of the Company on                        ;
and

 

WHEREAS, as an
inducement to the Grantee to remain in the employ of the Company or one of its
subsidiaries, to increase the Grantee’s proprietary interest in the business of
the Company through ownership of the Company’s stock, and to reward the Grantee’s
contribution to the future success of the Company, the Company desires to award
the Grantee shares of Restricted Stock (as that term is defined in the Plan) in
accordance with the terms and conditions of this Agreement;

 

NOW, THEREFORE,
in consideration of the premises, the mutual covenants hereinafter set forth,
and other good and valuable consideration, the Company and the Grantee hereby
agree as follows:

 

1.        The Company hereby awards the Grantee,
as a matter of separate inducement and agreement, and not in lieu of salary or
other compensation for services, an Award of Restricted Stock comprising                  
shares of the common stock, par value $.01 per share, of the Company (“Common Stock”), on the terms and conditions hereinafter set
forth, such number of shares to be subject to adjustment as provided in Section
             of the
Plan.

 

In order for this Award to become effective, the
Grantee 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 Grantee fails to do so, this Agreement shall be deemed
canceled, null and void.

 

2.        The Plan, a copy of which has been made
available to the Grantee, is incorporated herein by reference and is made part
of this Agreement as if fully set forth herein. 
Capitalized terms used in this Agreement which are not defined herein
shall have the meaning assigned to such terms in the Plan, it being understood
that the term “Restricted Stock” shall mean and
refer only to those shares of Restricted Stock granted pursuant to this
Agreement.  This Agreement is subject to,
and the Company and the Grantee agree to be bound by, all of the terms and
conditions of the Plan as the same exist at the time this Agreement became
effective.  The Plan shall control in the
event there is any expressed conflict between the Plan and the terms hereof and
with respect to such matters as are not expressly covered in this
Agreement.  The Board or the Committee
may amend the Plan and the terms of this Agreement only to the extent permitted
by Section           of the Plan.

 

3.       The Restricted Stock awarded under this
Agreement will not be evidenced by a stock certificate or certificates. The
Restricted Stock will be registered on the books of the Company by its transfer
agent in uncertificated form.  A
restriction on transfer will be placed on

 

 

these
shares and remain until such time as they vest in accordance with the terms and
conditions (including forfeiture) of this Agreement and the Plan.

 

4.       Subject to the provisions of Paragraph 6
of this Agreement, there shall be a Restriction Period beginning on the date of
this Agreement with respect to the shares of Restricted Stock awarded.  [Insert terms of Restriction Period.]  Except as otherwise
provided in Paragraph 6 hereof, all shares still subject to restriction on the
date of Grantee’s Termination of Employment shall be forfeited by the Grantee.

 

5.       Until the earlier of (i) the expiration
of the Restriction Period with respect to any of the shares granted hereunder
or (ii) the vesting of such shares in accordance with the provisions of this
Agreement or the Plan, the Grantee shall not be permitted to sell, assign,
transfer, pledge, or otherwise encumber shares of Restricted Stock[; provided
that the foregoing shall not prevent the Grantee from pledging Restricted Stock
as security for a loan, the sole purpose of which is to provide funds to pay
the option price for stock options granted to the Grantee under the Plan or any
successor plan of the Company].

 

6.       Notwithstanding any other provision of
this Agreement, all shares of Restricted Stock granted hereunder still subject
to restriction shall become fully vested and transferable and become free of
all restrictions and deferral limitations to the full extent of the original
grant upon the occurrence of any of the following events:  (a) the Termination of Employment of the
Grantee by reason of the Grantee’s death; (b) the Termination of Employment of
the Grantee by reason of the Grantee’s Disability; [or] (c) the occurrence of a
Change of Control as defined in Section       of the Plan
[or (d) the Termination of Employment of the Grantee not by reason of the Grantee’s
Disability or death and not due to the Grantee’s voluntary Termination of Employment
or the Company’s Termination of Employment of the Grantee for cause].

 

7.       If and when the Restriction Period
expires as to the shares of Restricted Stock awarded hereunder without a prior
forfeiture of the Restricted Stock, or if and when Restricted Stock vests
pursuant to the provisions of Paragraph 6 hereof, and subject to the payment of
withholding taxes as provided in Paragraph 9 hereof, the Company will direct its
transfer agent to remove the restriction on transfer from the number of shares of
Common Stock as to which the Restriction Period has ended or that have vested
pursuant to Paragraph 6.

 

8.       Except as otherwise provided in this
Agreement or the Plan, the Grantee shall have all rights of a shareholder with
respect to the shares of Restricted Stock awarded hereunder, including the
right to vote such shares and the right to receive any cash dividends which may
be declared on the Company’s Common Stock. 
Dividends payable in Common Stock shall be paid in the form of
additional shares of Restricted Stock and shall be held subject to the same
Restriction Period and vesting provisions applicable to the shares of
Restricted Stock on which such dividends were paid.

 

9.       No later than the date as of which an
amount first becomes includable in the gross income of the Grantee for federal
income tax purposes with respect to any Restricted Stock granted by this
Agreement, the Grantee shall pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, any federal, state, local
or foreign taxes of any kind required by law to be withheld by the Company with
respect to such amount.  Unless otherwise
determined by the Committee, withholding obligations (up to the minimum
statutory amount required to be withheld by the Company) may be settled with Common
Stock, including shares of the Restricted Stock that give rise to the
withholding requirement or shares of Common Stock already owned by the Grantee
for a period of at least six months.  The

 

2

 

obligations
of the Company under the Plan shall be conditional on such payment or
arrangements, 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
to the Grantee.  Grantee, therefore, hereby
elects, notwithstanding anything to the contrary in this Paragraph 9 or elsewhere
in this Agreement, to satisfy any and all federal, state, local and foreign
taxes of any kind required to be withheld by the Company in connection with
Grantee’s shares (“Withholding Taxes”)
by selecting one of the following payment options; provided
that in all cases, the Company shall have the right to receive not less than
the minimum amount of the Withholding Taxes that the Company is required by law
to withhold (the “Mandatory Withholding Taxes”);
and further provided that an amount equal to
the Mandatory Withholding Taxes in respect of any cash payment to Grantee shall
be withheld from any such cash payment:

 

OPTION 1: 

 

o                                    Authorizing and directing the Company to deduct from the
total number of shares of Common Stock issued and deliverable to Grantee
pursuant to this Agreement the number of shares having a value equal to the
amount of the Withholding Taxes on the date such amount becomes due.

 

OPTION 2:

 

o            Paying the
Withholding Taxes to the Company in cash.

 

OPTION 3:

 

o                                    Tendering to the Company the
number of unrestricted shares of Common Stock owned by the Grantee for a period
of at least six months prior to the date on which Withholding Taxes are due and
having a value equal to the mandatory Withholding Taxes.

 

In the event that none of the payment options set forth above is
specified, the Grantee’s election shall be deemed to be Option 1, and the
Company shall proceed accordingly.

 

11.       Grantee understands and acknowledges that
Grantee is one of a limited number of employees of the Company and its Subsidiaries
who have been selected to receive grants of Restricted Stock and that Grantee’s
award is considered Company confidential information.  Grantee hereby covenants and agrees not to
disclose the Award of RSUs pursuant to this Agreement to any other person
except (a) Grantee’s immediate family and legal or financial advisors who agree
to maintain the confidentiality of this Agreement, (b) as required in
connection with the administration of this Agreement and the Plan as it relates
to this award or under applicable law, and (iii) to the extent the terms of
this Award have been publicly disclosed.

 

12.     The grant of Restricted Stock to the
Grantee in any year shall give the Grantee 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 the Grantee is specifically and unqualifiedly
unimpaired by this Agreement.

 

3

 

13.     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 the Company may specify
in writing to the Grantee by a notice delivered in accordance with this
paragraph.  All notices to the Grantee
shall be delivered to the Grantee at the Grantee’s address specified below or
at such other address as the Grantee may specify in writing to the Secretary of
the Company by a notice delivered in accordance with this paragraph.

 

14.     This Agreement, including the provisions of
the Plan incorporated by reference herein, comprises the whole Agreement
between the parties hereto with respect to the subject matter hereof, and shall
be governed by and construed in accordance with the laws of the State of
Delaware, without reference to principles of conflicts of law.  This Agreement shall become effective when it
has been executed or accepted electronically by the Company and the Grantee.

 

15.     This Agreement shall inure to the benefit
of and be binding upon each successor of the Company and, to the extent
specifically provided herein and in the Plan, shall inure to the benefit of and
shall be binding upon the Grantee’s heirs, legal representatives, and
successors.

 

16.     If any provision of this Agreement shall be
invalid or unenforceable, such invalidity or unenforceability shall not affect
the validity and enforceability of the remaining provisions of this Agreement.

 

17.     This Agreement may be executed in separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which together will constitute one and the same
instrument.  In pleading or proving this
Agreement, it will not be necessary to produce or account for more than one
such counterpart.

 

IN WITNESS WHEREOF, this
Agreement is executed by the Grantee and by the Company through its duly
authorized officer or officers as of the day and year first above written.

 

DATE:

 

	
   

  	
  UNOVA, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  [Name}

  
	
   

  	
  [Title}

  
	
   

  	
   

  
	
   

  	
  GRANTEE:

  	
   

  
	
   

  	
  (Please check one of the boxes under

  Paragraph 9)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  
				

 

4Exhibit 10.5

 

UNOVA, INC.

 

RESTRICTED STOCK UNIT AGREEMENT

 

This Restricted Stock Unit Agreement
(the “Agreement”) is made as of the
      day of                    ,             ,
between UNOVA, Inc., a Delaware corporation (the “Company”) and                                    
(the “Grantee”).

 

WHEREAS, the UNOVA, Inc. 2004 Omnibus Incentive
Compensation Plan (the “Plan”) was
adopted by the Board of Directors of the Company on March 11, 2004, and was
approved by the shareholders of the Company on May 6, 2004; and

 

WHEREAS, as an inducement to the Grantee to remain
in the employ of the Company or one of its Subsidiaries or Affiliates, the
Company desires to award the Grantee Restricted Stock Units (as that term is
defined in the Plan) in accordance with the terms and conditions of the Plan
and this Agreement.

 

NOW,
THEREFORE, in
consideration of the premises, the mutual covenants hereinafter set forth, and
other good and valuable consideration, the Company and the Grantee hereby agree
as follows:

 

1.         The Company hereby grants the Grantee, as a matter of
separate inducement and agreement, and not in lieu of salary or other
compensation for services, an Award of               
Restricted Stock Units (“RSUs”) comprising
the right to receive shares of the common stock, par value $.01 per share, of
the Company (the “Common Stock”) on the terms and
conditions hereinafter set forth (the “Awarded
Shares”), such number of Awarded Shares to be subject to adjustment
as provided in Section 3 of the Plan. The Grantee shall have no obligation to
pay the Company additional consideration for the Awarded Shares.

 

In order for this Award to become effective, the Grantee 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 the Grantee
fails to do so, this Agreement shall be deemed cancelled, null and void.

 

2.         The Plan, a copy of which has been made available to the
Grantee, is incorporated herein by reference and is made part of this Agreement
as if fully set forth herein. Capitalized terms used in this Agreement which
are not defined herein shall have the meanings assigned to such terms in the
Plan, it being understood that the terms “Restricted Stock Units” and “RSUs” shall mean and refer to the right to receive only the
Awarded Shares. This Agreement is subject to, and the Company and the Grantee
agree to be bound by, all of the terms and conditions of the Plan as the same
exist at the time this Agreement became effective. The Plan shall control in
the event there is any express conflict between the Plan and the terms hereof
and with respect to such matters as are not expressly covered in this
Agreement. The Company hereby reserves the right to alter, amend, modify,
restate, suspend or terminate the Plan and this Agreement in accordance with
Section 12 of the Plan, but no such subsequent amendment, modification, restatement,
or termination of the Plan or this Agreement shall adversely affect in any
material way the Grantee’s rights under this Agreement without the Grantee’s
written consent.  This Agreement shall be
subject, without further action by the Company or the Grantee, to such
amendment, modification, or restatement.

 

 

3.         Subject to the provisions of Paragraph 5 of this Agreement,
there shall be a Period of Restriction (the “Restriction
Period”).  [Insert terms of
Restriction Period.]  Except
as otherwise provided in Paragraph 5 hereof, all RSUs still subject to
restriction on the date of Grantee’s Termination of Employment shall be
forfeited by the Grantee.

 

4.         Until the earlier of (a) the end of the Restriction Period
with respect to any of the RSUs granted hereunder or (b) the vesting of such
RSUs in accordance with the provisions of this Agreement or the Plan, the
Grantee shall not be permitted to sell, assign, transfer, pledge, or otherwise
encumber the RSUs or the Awarded Shares.

 

5.         Notwithstanding any other provision of this Agreement, all
RSUs granted hereunder still subject to restriction shall become fully vested
and free of all restrictions and deferral limitations to the full extent of the
original grant upon the occurrence of any of the following events: (a) the
Termination of Employment of the Grantee by reason of the Grantee’s death; (b)
the Termination of Employment of the Grantee by reason of the Grantee’s
Disability; [or] (c) the occurrence of a Change of Control as defined in
Section 13(b) of the Plan; [or (d) the Termination of Employment of the Grantee
not by reason of the Grantee’s Disability or death and not due to the Grantee’s
voluntary Termination of Employment with the Company or the Company’s
termination of Grantee’s employment for cause].

 

6.         If and when the Restriction Period ends with respect to RSUs
awarded hereunder without a prior forfeiture of such RSUs, or if and when RSUs
vest pursuant to the provisions of Paragraph 5 hereof, and subject to the
payment of withholding taxes as provided in Paragraph 8 hereof, the Company
will direct its transfer agent to issue to the Grantee in uncertificated form the
number of unrestricted shares of Common Stock equal to the number of RSUs as to
which the Restriction Period has ended or that have vested pursuant to
Paragraph 5.

 

7.         Except as otherwise provided in this Agreement or the Plan,
the Grantee shall not have any rights of a shareholder with respect to the RSUs
or, prior to vesting, the Awarded Shares.

 

8.         No later than the date as of which an amount first becomes
includable in the gross income of the Grantee for federal income tax purposes
with respect to any Awarded Shares, the Grantee shall pay to the Company, or
make arrangements satisfactory to the Company regarding the payment of, any
federal, state, local, or foreign taxes of any kind required by law to be
withheld by the Company with respect to such amount. Unless otherwise
determined by the Committee, withholding obligations (up to the minimum
statutory amount required to be withheld by the Company) may be settled with shares
of Common Stock, including the Awarded Shares that give rise to the withholding
requirement or shares of Common Stock already owned by the Grantee for a period
of at least six months. The obligations of the Company under the Plan shall be
conditional on such payment or arrangements, and the Company, and its Subsidiaries
and its Affiliates shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment otherwise due to the Grantee. Grantee,
therefore, hereby unconditionally and irrevocably elects, notwithstanding
anything to the contrary in this Paragraph 8 or elsewhere in this Agreement, to
satisfy any and all federal, state, local, and foreign taxes of any kind that
may be withheld by the Company in connection with Grantee’s Awarded Shares (the
“Withholding Taxes”) by electing
one of the following options; provided that
in all cases, the Company shall have the right to receive not less than the
minimum amount of the Withholding Taxes that the Company is required by law to
withhold (the “Mandatory Withholding Taxes”);
and further provided that an amount equal to
the Mandatory Withholding

 

2

 

Taxes in respect of any cash payment to Grantee
shall be withheld from any such cash payment:

 

OPTION 1:

 

o                                    Authorizing and directing the Company to
deduct from the total number of shares of Company common stock issued and
deliverable to Grantee pursuant to this Agreement the number of shares having a
value equal to the Mandatory Withholding Taxes.

 

OPTION 2:

 

o                                    Tendering to the Company the number of
unrestricted shares of Company common stock owned by the Grantee for a period
of at least six months prior to the date on which Withholding Taxes are due and
having a value equal to the Mandatory Withholding Taxes.

 

OPTION 3:

 

o                                    Paying to the Company in
cash an amount up to the Withholding Taxes but not less than the Mandatory
Withholding Taxes.

 

In the event that none of the payment options set
forth above is specified, the Grantee’s election shall be deemed to be Option 1,
and the Company shall proceed accordingly.

 

9.     Grantee understands and acknowledges that
Grantee is one of a limited number of employees of the Company and its
Subsidiaries and Affiliates who have been selected to receive grants of RSUs and
that Grantee’s Award is considered Company confidential information. Grantee
hereby covenants and agrees not to disclose the Award of RSUs pursuant to this
Agreement to any other person except (a) Grantee’s immediate family and legal
or financial advisors who agree to maintain the confidentiality of this
Agreement, (b) as required in connection with the administration of this
Agreement and the Plan as it relates to this Award or under applicable law, and
(c) to the extent the terms of this Award have been publicly disclosed.

 

10.       The grant of RSUs to the Grantee in any year shall give the
Grantee neither any right to similar grants in future years nor any right to be
retained in the employ of the Company or its Subsidiaries or Affiliates, 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
and Affiliates to dismiss or discharge the Grantee is specifically and
unqualifiedly unimpaired by this Agreement.

 

11.       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 the Company may specify in writing to the Grantee by a
notice delivered in accordance with this paragraph. All notices to the Grantee
shall be delivered to the Grantee at the Grantee’s address specified below or
at such other address as the Grantee may specify in writing to the Secretary of
the Company by a notice delivered in accordance with this paragraph.

 

3

 

12.       This Agreement, including the provisions of the Plan
incorporated by reference herein, comprises the whole Agreement between the
parties hereto with respect to the subject matter hereof, and shall be governed
by and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflicts of law. 
This Agreement shall become effective when it has been executed or accepted
electronically by the Company and the Grantee.

 

13.       This Agreement shall inure to the benefit of and be binding
upon each successor of the Company and, to the extent specifically provided
herein and in the Plan, shall inure to the benefit of and shall be binding upon
the Grantee’s heirs, legal representatives, and successors.

 

14.       If any provision of this Agreement shall be invalid or
unenforceable, such invalidity or unenforceability shall not affect the
validity and enforceability of the remaining provisions of this Agreement.

 

15.       This Agreement may be executed in separate counterparts, each
of which when so executed and delivered will be an original, but all of which
together will constitute one and the same instrument. In pleading or proving
this Agreement, it will not be necessary to produce or account for more than
one such counterpart.

 

IN
WITNESS WHEREOF, this
Agreement is executed by the Grantee and by the Company through its duly
authorized officer or officers as of the day and year first above written.

 

	
  DATE:

  	
  UNOVA, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  [Name]

  
	
   

  	
  [Title]

  
	
   

  	
   

  	
   

  
	
   

  	
  GRANTEE:

  	
   

  
	
   

  	
  (One of
  the boxes under Paragraph 8 must
 be checked)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
  Social
  Security Number

  
				

 

4

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