Document:

Prepared by R.R. Donnelley Financial -- Notice of Grant of Restricted Performance Stock

 EXHIBIT 10.44 
  
 NORTHROP GRUMMAN CORPORATION 
  
 2001 LONG-TERM INCENTIVE STOCK PLAN 

 
 RESTRICTED PERFORMANCE STOCK RIGHTS 
  
 TERMS AND CONDITIONS 
  
 This grant of Restricted Performance
Stock Rights (“RPSRs”) was granted on August 20, 2002 (the “Date of Grant”) by Northrop Grumman Corporation (the “Company”) to Kent Kresa (the “Grantee”). 
  

1.    The performance period with respect to this award shall commence January 1, 2002 and shall end December 31, 2004 (the “Performance
Period”). The RPSRs subject to this grant shall be paid at the conclusion of the Performance Period, provided that the Grantee has remained in the continuous employment of the Company or one of its subsidiaries through the last day of the
Performance Period, and subject to the terms and performance conditions stated herein, in the Northrop Grumman 2001 Long-Term Incentive Stock Plan, as amended from time to time (the “Plan”), and any rules or guides to administration
adopted by the Company’s Compensation and Management Development Committee or any successor committee appointed by the Company’s Board of Directors to administer the Plan (the “Committee”) in effect from time to time, including,
without limitation, the Plan’s 2001 Guide to Administration (the “Guide”). Without limiting the generality of the foregoing, the RPSRs are subject to the earnout provisions set forth in the Guide. In accordance with the Guide,
Dividend Equivalents (as defined in the Guide) will be paid on and at the same time as any RPSRs that are paid. RPSRs that become payable will be paid by delivery of an equivalent number of shares of Company Common Stock or, in the discretion of the
Committee, in cash. Dividend Equivalents that become payable will be paid in cash or, in the discretion of the Committee, shares of Company Common Stock. 
  
 2.    Except as expressly provided below if the Grantee Retires while employed by the Company or a subsidiary, this grant of RPSRs and related Dividend Equivalents is subject to
termination in accordance with the provisions of the Guide if the Grantee ceases to be an employee of the Company and its subsidiaries. The number of RPSRs (and related Dividend Equivalents) subject hereto that would otherwise be paid if the Grantee
had remained employed by the Company or a subsidiary through the entire Performance Period will be pro-rated in accordance with the Guide if the Grantee dies or becomes Disabled (as defined below) while employed by the Company or a subsidiary and
after completing at least six consecutive calendar months of employment with the Company or a subsidiary during the three-year Performance Period. Notwithstanding any retirement provisions set forth in the Guide to the contrary, if the Grantee
Retires (as defined below) while employed by the Company or a subsidiary, there will be no pro ration of the target number of RPSRs subject to this grant (that is, 100% of the target number of RPSRs initially subject to this grant shall remain
subject to this grant) and payment of the RPSRs subject to this grant (and related Dividend Equivalents) will be made at the same time and on the same performance basis as if the Grantee had not Retired. For purposes of this instrument,
“Disabled” means disabled pursuant to the provisions of the Company’s (or one of its subsidiary’s) Long Term Disability Plan applicable to the Grantee; or, if the Grantee is not covered by such a Long Term Disability Plan, the
incapacity of the Grantee, due to injury, illness, disease, or bodily or mental infirmity, to engage in the performance of substantially all of the usual duties of employment with the Company or the subsidiary which employs the Grantee, such
disability to be determined by the Committee upon receipt and in reliance on competent medical advice from one or more individuals, selected by the Committee, who are qualified to give such professional medical advice. For purposes of this
instrument, “Retire” means that the Grantee terminates employment after attaining age 55 with at least 10 years of service (other than in connection with a termination by the Company or a subsidiary for cause). 
  
 3.    The Company or the subsidiary which employs the Grantee shall be entitled to require, as a condition to any
payment of the RPSRs and Dividend Equivalents, that the Grantee pay any sums required to be withheld by federal, state or local tax law with respect to such payment. Alternatively, the Company or such subsidiary, in its discretion, may make such
provisions for the withholding of taxes as it deems appropriate. 
  
 4.    Other than by will or
the laws of descent and distribution, the RPSRs and Dividend Equivalents subject to this instrument may not be sold, assigned, transferred, pledged or otherwise disposed of or encumbered, either voluntarily or involuntarily. 
  
 5.    Payments and the issuance of shares with respect hereto are subject to full compliance with all then applicable
requirements of law, the Securities and Exchange Commission, the Commissioner of Corporations of the State of California, or other regulatory agencies having jurisdiction over the Company and its shares, and of any exchange upon which stock of the
Company may be listed. The Grantee shall not have the rights and privileges of a stockholder with respect to any shares which may be issued in respect of the RPSRs and/or Dividend Equivalents until the date appearing on the certificate(s) for such
shares, if such shares become issuable. 
  
           6.    The RPSRs,
Dividend Equivalents, and the shares subject to this grant are subject to adjustment upon the occurrence of events such as stock splits, stock dividends and other changes in capitalization in accordance with Section 6 of the Plan. In the event of
any adjustment, the Company will give the Grantee written notice thereof which will set forth the nature of the adjustment. Except as set forth below in this paragraph 6, the Grantee’s rights with respect to the RPSRs and Dividend Equivalents
in the event of a Change in Control (as defined in the Plan) shall be determined under the Guide. Subject to the exceptions set forth in Section X of the Guide, if, within the Protected Period (as defined in the Guide) corresponding to a Change in
Control of the Company, the Grantee’s employment by the Company and its subsidiaries is involuntarily terminated by the Company and its subsidiaries for reasons other than Cause (as defined in the Section X of the Guide) or by the Grantee for
Good Reason (as defined in Section X of the Guide) and the Grantee was not otherwise entitled to a pro-rated payment with respect to the RPSRs as referenced in paragraph 2 hereof, then upon the Change in Control the Grantee will be eligible for a
pro-rated portion of the RPSRs (and Dividend Equivalents with respect thereto) in accordance with Section VI.K.2 of the Guide. 
  
 7.    Vesting in the RPSRs and Dividend Equivalents subject to this instrument requires continued employment through the last day of the Performance Period. Unless otherwise expressly provided in paragraph 2 or
paragraph 6 hereof, employment for only a portion of the Performance Period, even if substantial, will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of
employment. Subject to the leave of absence provisions of the Guide, the term “employment” as used herein means active employment by the Company or one of its subsidiaries and salary continuation without active employment will not, in and
of itself, constitute “employment” for purposes hereof (in the case of salary continuation without active employment, the participant’s cessation of active employee status shall be deemed to be a termination of “employment”
for purposes hereof). Nothing contained in this instrument, the Plan, or the Guide constitutes an employment commitment by the Company or any subsidiary, affects the Grantee’s status (if the Grantee is otherwise an at-will employee) as an
employee at will who is subject to termination without cause, confers upon the Grantee any right to continue in the employ of the Company or any subsidiary, or interferes in any way with the right of the Company or of any subsidiary to terminate
such employment at any time. 
  
 8.    The Committee has the discretionary authority to determine
any questions as to the date when the Grantee’s employment terminated and the cause of such termination and to interpret any provision of this instrument, the Plan, the Guide, and any other applicable rules or guides to administration. Any
action taken by, or inaction of, the Committee relating to or pursuant to this instrument, the Plan, the Guide, or any other applicable rules or guides to administration shall be within the absolute discretion of the Committee and shall be
conclusive and binding on all persons. 
  
 9.    This grant of RPSRs and related Dividend
Equivalents was made under the Plan. The RPSRs and related Dividend Equivalents are governed by, and the Grantee’s rights are subject to, all of the terms and conditions of the Plan, the Guide (except as expressly provided in paragraph 2
hereof), and any other rules or regulations adopted by the Committee, as the foregoing may be amended from time to time. The Grantee shall have no rights with respect to any amendment of this instrument, the Plan or the Guide unless such amendment
is in writing and signed by a duly authorized officer of the Company.<PAGE>

                                                                    EXHIBIT 4.1

CONTROL No. _________________________     Number of Rights ____________________

        VOID IF NOT RECEIVED BY THE SUBSCRIPTION AGENT BEFORE 5:00 P.M.
                    NEW YORK CITY TIME ON OCTOBER   , 2002

                        ENCOMPASS SERVICES CORPORATION
                     SUBSCRIPTION RIGHTS FOR COMMON STOCK

Dear Rights Holder:

   As the registered owner of this Subscription Certificate, you are the owner
of the number of subscription rights shown above. Each subscription right
entitles you to subscribe for one share of common stock, par value $0.001 per
share, of Encompass Services Corporation at the subscription price of $0.55 per
share (the "Basic Subscription Privilege"). If you subscribe for all of the
shares available pursuant to your Basic Subscription Privilege, you are also
entitled to purchase additional shares at the Subscription Price (subject to
pro-ration and certain limitations described in the enclosed Prospectus). The
other terms and conditions of these Subscription Rights are set forth in the
enclosed Prospectus.

   You have been issued one subscription right for each share of common stock
that you held on September 13, 2002 and one subscription right for each share
of common stock issuable upon the exercise or conversion of the 7.25%
convertible participating preferred stock and certain of our options and
warrants that you held on September 13, 2002.

                THESE SUBSCRIPTION RIGHTS ARE NON-TRANSFERABLE

   You have four choices:

    1. You can subscribe for one share of common stock for each subscription
       right that you received, as listed at the top of the page;
    2. If you have exercised your Basic Subscription Privilege in full, then
       you can subscribe for additional shares of common stock (the
       "Over-Subscription Privilege"). Such shares may be available to you
       subject to an allocation process as described in the Prospectus;
    3. You can subscribe for less than all of the subscription rights that you
       received, as listed above, and allow the rest of your subscription
       rights to expire; or
    4. If you do not want to purchase any additional shares, you can disregard
       this material.

TO SUBSCRIBE, FULL PAYMENT OF THE SUBSCRIPTION PRICE IS REQUIRED FOR EACH SHARE
OF COMMON STOCK. YOU MUST COMPLETE THE REVERSE SIDE OF THIS FORM TO SUBSCRIBE
FOR NEW SHARES.

ATTEST:                                   ENCOMPASS SERVICES CORPORATION

By: _________________________________     By: _________________________________
                                              Control No.
                                              Account No.

<PAGE>

                 DELIVERY OPTIONS FOR SUBSCRIPTION CERTIFICATE

<TABLE>
<S>                        <C>                        <C>
BY MAIL:                   BY OVERNIGHT COURIER:      BY HAND:
Mellon Bank, N.A.          Mellon Bank, N.A.          Mellon Bank, N.A.
C/O Mellon Investor        C/O Mellon Investor        C/O Mellon Investor
Services LLC               Services LLC               Services LLC
P.O. Box 3301              85 Challenger Road         120 Broadway, 13th Floor
South Hackensack, NJ 07606 Ridgefield Park, NJ 07660  New York, New York 10271
Attention: Reorganization  Attention: Reorganization  Attention: Reorganization
Department                 Department                 Department
</TABLE>

 Delivery to an address other than one of the addresses listed above will not
                          constitute valid delivery.
           Delivery by facsimile will not constitute valid delivery.

               PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY

--------------------------------------------------------------------------------

IF YOU WISH TO SUBSCRIBE FOR YOUR FULL BASIC SUBSCRIPTION RIGHT OR A PORTION
THEREOF:

     I apply for ____________ shares   x   $0.55     =   $________________

                    (No. of new shares)                          (Amount
Enclosed)

IF YOU HAVE SUBSCRIBED FOR YOUR FULL BASIC SUBSCRIPTION RIGHT ABOVE AND WISH TO
PURCHASE ADDITIONAL SHARES PURSUANT TO THE OVER-SUBSCRIPTION PRIVILEGE:

    I apply for ____________ shares   x   $0.55____   =   $________________

                    (No. of new shares)                          (Amount
Enclosed)

--------------------------------------------------------------------------------

             TO SUBSCRIBE. I               YOU MUST HAVE YOUR
          acknowledge that I have          SIGNATURE GUARANTEED IF
          received the Prospectus          YOU WISH TO HAVE YOUR
          for this offer and I             SHARES DELIVERED TO AN
          hereby irrevocably               ADDRESS OTHER THAN THAT
          subscribe for the number         SHOWN ON THE FRONT.
          of shares indicated above        Your signature must be
          on the terms and                 guaranteed by: (a) a
          conditions specified in          commercial bank or trust
          the Prospectus. I hereby         company, (b) a member
          agree that if I fail to          firm of a domestic stock
          pay for the shares of            exchange, or (c) a credit
          common stock for which I         union.
          have subscribed, the             Signature Guaranteed: ___
          company may exercise its            (Name of Bank or Firm)
          legal remedies against me.       By:____________________
          Signature(s) of                   (Signature of Officer)
          Subscriber(s):
          _________________________
          _________________________
          Please give your
          telephone number:
          (     )
          _________________________
          Address for delivery of
          shares if other than
          shown on front:
          _________________________
          _________________________
          IMPORTANT: The
          signature(s) must
          correspond in every
          particular, without
          alteration, with the
          name(s) as printed on the
          reverse of this
          Subscription Certificate.
          If permanent change of
          address, check here  [_]

--------------------------------------------------------------------------------
FULL PAYMENT FOR THE SHARES MUST ACCOMPANY THIS FORM AND MUST BE MADE PAYABLE
IN UNITED STATES DOLLARS IN A CHECK OR BANK DRAFT DRAWN UPON A U.S. BANK OR
POSTAL, TELEGRAPHIC OR EXPRESS MONEY ORDER AND PAYABLE TO MELLON INVESTOR
SERVICES LLC (ACTING ON BEHALF OF MELLON BANK, N.A.), AS SUBSCRIPTION AGENT.
PAYMENT MAY ALSO BE MADE BY THE WIRE TRANSFER OF IMMEDIATELY AVAILABLE FUNDS AS
DESCRIBED IN THE PROSPECTUS.

IF YOU ELECT TO SUBSCRIBE, YOU MUST PROVIDE THE SUBSCRIPTION AGENT WITH A
CORRECT TAXPAYER IDENTIFICATION NUMBER (TIN) ON SUBSTITUTE FORM W-9. SEE
EXHIBIT B TO THE INSTRUCTIONS AS TO USE OF ENCOMPASS SERVICES CORPORATION
RIGHTS CERTIFICATE.

STOCK CERTIFICATES FOR THE SHARES SUBSCRIBED TO PURSUANT TO THE RIGHTS OFFERING
WILL BE DELIVERED AS SOON AS PRACTICABLE AFTER THE EXPIRATION DATE. ANY REFUND
IN CONNECTION WITH YOUR SUBSCRIPTION WILL BE DELIVERED AS SOON AS PRACTICABLE
THEREAFTER.

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