Document:

Restricted Stock Unit Award Agreement

 Exhibit 10.4 

FARO Technologies, Inc. 2014 Incentive Plan 

Restricted Stock Unit Award Agreement 

You have been selected to participate in the FARO Technologies, Inc. 2014 Incentive Plan (the “Plan”), as specified below: 

Grantee: 
 Grant Date:

 Number of Restricted Stock Units Granted: 

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) evidences the grant of restricted stock units (the “Restricted
Stock Units”) by FARO Technologies, Inc., a Florida corporation (the “Company”), to the Grantee named above, on the date indicated above, pursuant to the provisions of the Plan. 

This Agreement and the Plan contain the terms and conditions governing the Restricted Stock Units. If there is any inconsistency between the
terms of this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically
set forth otherwise herein. The parties hereto agree as follows: 
 1. Award of Restricted Stock Units. The Company hereby
grants to the Grantee the number of Restricted Stock Units set forth above, subject to the terms and conditions of the Plan and this Agreement. 

2. Vesting of Restricted Stock Units; Forfeiture. All Restricted Stock Units will vest on the third anniversary of the Grant
Date. If the Grantee’s employment with or service to the Company or an Affiliate is terminated prior to the date the Restricted Stock Units are vested, the Restricted Stock Units that have not yet vested as of the date of such termination will
be immediately forfeited without further consideration or any act or action by the Grantee; provided, however, if, prior to the date the Restricted Stock Units have vested, the Grantee’s employment with or service to the Company or an Affiliate
terminates as a result of death or disability (as determined by the Committee), the Committee, in its sole discretion, shall have the right to immediately vest all or any portion of such Restricted Stock Units, subject to such terms as the
Committee, in its sole discretion, deems appropriate. 
 3. Conversion to Shares. Vested Restricted Stock Units will be
converted on the vesting date to actual Shares, and will be registered in the Grantee’s name on the books of the Company as of that date. 

4. Nontransferability of the Award. This Award shall not be transferable by the Grantee otherwise than by will or the laws of
descent and distribution or as otherwise expressly permitted pursuant to the Plan. 
 5. Tax Withholding. When the Restricted
Stock Units become taxable income to the Grantee, the Company may deduct and withhold from any cash otherwise payable to the Grantee (whether payable as salary, bonus or other compensation) such amount as may be required for the purpose of
satisfying the Company’s obligation to withhold Federal, state or local taxes. Further, in the event the amount so withheld is insufficient for such purpose, the Company may require that the Grantee upon its demand or otherwise make
arrangements satisfactory to the Company 

 
for payment of such amount as may be requested by the Company in order to satisfy its obligation to withhold any such taxes. The Grantee shall be permitted to satisfy the Company’s tax
withholding requirements by making a written election (in accordance with such rules and regulations and in such form as the Committee may determine) to have the Company withhold Shares otherwise issuable to the Grantee pursuant to the vesting of
the Restricted Stock Units (the “Withholding Election”) having a Fair Market Value on the date income is recognized (the “Tax Date”) equal to the minimum amount required to be withheld. If the number of Shares withheld to satisfy
withholding tax requirements shall include a fractional share, the number of Shares withheld shall be reduced to the next lower whole number and the Grantee shall deliver cash in lieu of such fractional share, or otherwise make arrangements
satisfactory to the Company for payment of such amount. A Withholding Election must be received by the Corporate Secretary of the Company on or prior to the Tax Date. 

6. Status of Grantee. The Grantee shall not be deemed for any purposes to be a shareholder of the Company with respect to any of
the Restricted Stock Units unless and until they are converted to Shares and registered in the Grantee’s name on the books of the Company, in accordance with section 3 above, upon vesting of the Restricted Stock Units. Neither the Plan nor this
Agreement shall confer upon the Grantee any right to continue in the employ of the Company or any of its Affiliates, nor to interfere in any way with the right of the Company to terminate the employment of the Grantee at any time. In no event shall
the value, at any time, of this Award, the Shares underlying this Award or any other benefit provided by this Agreement be included as compensation or earnings for purposes of any other compensation, retirement or benefit plan offered to employees
of the Company or its subsidiaries unless otherwise specifically provided for in such plan. 
 7. Powers of the Company Not
Affected. The existence of this Award shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s
capital structure or its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or prior preference stock senior to or affecting the Shares or the rights thereof, or dissolution or liquidation of the
Company, or any sale or transfer of all or any part of the Company’s assets or business or any other corporate act or proceeding, whether of a similar character or otherwise. 

8. Interpretation by Committee. As a condition of the granting of the Restricted Stock Units, the Grantee agrees, for himself or
herself and his or her legal representatives or guardians, that this Agreement shall be interpreted by the Committee and that any interpretation by the Committee of the terms of this Agreement and any determination made by the Committee pursuant to
this Agreement shall be final, binding and conclusive. 
 9. Miscellaneous. 

(a) This Agreement and the rights of the Grantee hereunder are subject to all the terms and conditions of the Plan, as the same may be amended
from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. The Committee shall have the right to impose such restrictions on any Shares acquired pursuant to the Award, as it may deem
advisable, including, without limitation, restrictions under applicable federal securities laws, under applicable federal and state tax law, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded,
and under any blue sky or state securities laws applicable to such Shares. 

  
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 (b) It is expressly understood that the Committee is authorized to administer, construe, and make
all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Grantee. 

(c) The Grantee agrees to take all steps necessary to comply with all applicable provisions of federal and state securities and tax laws in
exercising his or her rights under this Agreement. 
 (d) This Agreement shall be subject to all applicable laws, rules, and regulations,
and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 (e) All obligations of the
Company under the Plan and this Agreement shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase of all or substantially all of the business and/or assets of the
Company, or the result of a merger, consolidation or otherwise. 
 (f) The Company may, in its sole discretion, decide to deliver any
documents related to current or future participants in the Plan by electronic means. The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system
established and maintained by the Company or a third party designated by the Company. 
 (g) To the extent not preempted by federal law,
this Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida. 
 ***** 

  
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 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Grant
Date. 
  

	
	FARO TECHNOLOGIES, INC.
	
	By:
	
	Name:
	
	Title:
	
	GRANTEE
	
	Name:

  
 -4-EXECUTION VERSION

 

 

AMENDMENT NO. 2 TO RECEIVABLES FINANCING AGREEMENT

 

This AMENDMENT NO. 2 TO RECEIVABLES FINANCING AGREEMENT (this “Amendment No. 2”), dated as of July 29, 2016, is by and among VOLT FUNDING CORP. (“Volt Funding”), as borrower (the “Borrower”), the Persons from time to time party hereto as Lenders and LC Participants, PNC BANK, NATIONAL ASSOCIATION (“PNC”), as LC Bank, as an LC Participant, as a Lender and as Administrative Agent, and VOLT INFORMATION SCIENCES, INC. (“Volt”), as initial servicer (the “Servicer”).

 

BACKGROUND

 

WHEREAS, the parties hereto entered into the Receivables Financing Agreement as of July 30, 2015 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Financing Agreement”); and

 

WHEREAS, the parties hereto wish to amend the Receivables Financing Agreement pursuant to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.     Definitions.  Capitalized terms used but not defined in this Amendment No. 2 shall have the meanings assigned to them in the Receivables Financing Agreement.

 

SECTION 2.     Amendments to Receivables Financing Agreement.  Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the Receivables Financing Agreement is hereby amended as follows:

 

(a)           The definition of “Liquidity Report Date” is hereby added to Section 1.01 of the Receivables Financing Agreement in its entirety, in the appropriate alphabetical order, as follows:

 

“Liquidity Report Date” means (i) the Wednesday of any week and if such Wednesday is not a Business Day, the immediately succeeding Business Day of such week, (ii) any date on which an Information Package is due pursuant to the terms of this Agreement, (iii) any date on which a Loan Request or LC Request is delivered pursuant to the terms of this Agreement, and (iv) as otherwise requested by the Administrative Agent.

 

(b)           The definition of “Maintech Transaction” is hereby added to Section 1.01 of the Receivables Financing Agreement in its entirety, in the appropriate alphabetical order, as follows:

 

“Maintech Transaction” means (i) the sale of all or substantially all of the assets of Maintech, Incorporated, or (ii) the sale of all of the Capital Stock of Maintech, Incorporated, in each case, by the Parent to any Person (other than any Affiliate or Subsidiary of the Parent) and the receipt of the cash proceeds of such sale on or prior to September 30, 2016.

   

  

  

  

   

(c)           Section 8.04 of the Receivables Financing Agreement is hereby deleted in its entirety and replaced with the following:

 

SECTION 8.04.  Financial and Restrictive Covenants.

 

(a)           Prohibition of Share Buybacks or Dividends.  To the extent the Maintech Transaction has not occurred, the Parent shall not, at any time prior to and including October 31, 2016, (i) redeem, retire, purchase or acquire any of its Capital Stock, or agree, become or remain liable to do any of the foregoing, nor (ii) make or pay, or agree to become or remain liable to make or pay, any dividend or other distribution of any nature (whether in cash, property, securities or otherwise) on account of or in respect of its Capital Stock, or on account of the purchase, redemption, retirement or acquisition of such Capital Stock.

 

(b)           Liquidity Level.  The Parent shall provide to the Administrative Agent a written report in the form attached hereto as Exhibit J (any such report, a “Liquidity Report”) on each Liquidity Report Date.  The Liquidity Report shall reflect the Liquidity Level of the Parent and its Subsidiaries as of the last Business Day of the week immediately preceding the applicable Liquidity Report Date.  The Parent and its Subsidiaries on a consolidated basis shall not permit, on any Liquidity Report Date, the Liquidity Level to be less than the amount set forth in Schedule IV.

 

(d)           Exhibit J to the Receivables Financing Agreement is hereby added in its entirety with the form set forth in Exhibit A attached hereto.

 

(e)           Schedule IV to the Receivables Financing Agreement is hereby deleted and replaced in its entirety with the schedule set forth in Exhibit B attached hereto.

 

SECTION 3.     Conditions Precedent.  The effectiveness of this Amendment No. 2 is subject to the satisfaction of all of the following conditions precedent:

 

(a)           The Administrative Agent shall have received a fully executed counterpart of this Amendment No. 2 and the Amendment Fee Letter, dated as of the date hereof, by and among PNC as the Administrative Agent, a Lender, the LC Bank, and an LC Participant, PNC Capital Markets LLC and the Borrower (collectively, the “Amendment No. 2 Documents”).

 

(b)           The Administrative Agent shall have received such documents and certificates as the Administrative Agent shall have reasonably requested on or prior to the date hereof.

 

(c)           The Administrative Agent shall have received all fees and other amounts due and payable to it under the Receivables Financing Agreement and in connection with the Amendment No. 2 Documents on or prior to the date hereof, including, to the extent invoiced, payment or reimbursement of all fees and expenses (including reasonable and documented out-of-pocket fees, charges and disbursements of counsel) required to be paid or reimbursed on or prior to the date hereof.  To the extent such fees and other amounts have not yet been invoiced, the Borrower agrees to remit payment to the applicable party promptly upon receipt of such invoice.

   

  

2

  

   

(d)           No Event of Default or Unmatured Event of Default, as set forth in Section 10.01 of the Receivables Financing Agreement, shall have occurred and be continuing.

 

SECTION 4.     Amendment.  The Borrower, PNC as the LC Bank, an LC Participant, a Lender, and the Administrative Agent, and the Servicer, hereby agree that the provisions and effectiveness of this Amendment No. 2 shall apply to the Receivables Financing Agreement as of the date hereof.  Except as amended by this Amendment No. 2 and any prior amendments, the Receivables Financing Agreement remains unchanged and in full force and effect.  This Amendment No. 2 is a Transaction Document.

 

SECTION 5.     Counterparts.  This Amendment No. 2 may be executed in any number of counterparts, each of which when so executed shall be deemed an original and all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart hereof by facsimile or other electronic means shall be equally effective as delivery of an originally executed counterpart.

 

SECTION 6.     Captions.  The headings of the Sections of this Amendment No. 2 are provided solely for convenience of reference and shall not modify, define, expand or limit any of the terms or provisions of this Amendment No. 2.

 

SECTION 7.     Successors and permitted assigns.  The terms of this Amendment No. 2 shall be binding upon, and shall inure to the benefit of the Borrower, PNC as the LC Bank, an LC Participant, a Lender, and the Administrative Agent, and the Servicer, and their respective successors and permitted assigns.

 

SECTION 8.     Severability.  Any provision of this Amendment No. 2 which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 9.     Governing Law and Jurisdiction.  The provisions of the Receivables Financing Agreement with respect to governing law, jurisdiction, and agent for service of process are incorporated in this Amendment No. 2 by reference as if such provisions were set forth herein.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

  

3

  

   

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 by their duly authorized officers as of the date first above written.

 

	  	
VOLT FUNDING CORP.,

	  
	  	  	as the Borrower	  
	  	  	 	  	  
	  	  	 	  	  
	  	
By:

	  /s/ Kevin Hannon	  
	  	
Name:

	Kevin Hannon	  
	  	
Title:

	Treasurer	  
	  	  	 	  	  
	  	  	 	  	  
	  	
VOLT INFORMATION SCIENCES, INC.,

	  
	  	  	as the Servicer	  
	  	  	 	  	  
	  	  	 	  	  
	  	
By:

	 /s/ Paul Tomkins	  
	  	
Name:

	Paul Tomkins  	  
	  	
Title:

	Senior Vice President and Chief Financial Officer  
	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

Amendment 2 to RFA (PNC/Volt)

  

S-1

  

     

	  	
PNC BANK, NATIONAL ASSOCIATION, 

	  
	  	  	as Administrative Agent	  
	  	  	 	  	  
	  	  	 	  	  
	  	
By:

	 /s/ Eric Bruno	  
	  	
Name:

	Eric Bruno  	  
	  	
Title:

	Managing Director  	  
	  	  	 	  	  
	  	  	 	  	  
	  	
PNC BANK, NATIONAL ASSOCIATION, 

	  
	  	  	as LC Bank and as an LC Participant	  
	  	  	 	  	  
	  	  	 	  	  
	  	
By:

	  /s/ Eric Bruno	  
	  	
Name:

	Eric Bruno  	  
	  	
Title:

	Managing Director  	  
	  	  	 	  	  
	  	  	 	  	  
	  	
PNC BANK, NATIONAL ASSOCIATION, 

	  
	  	  	as a Lender	  
	  	  	 	  	  
	  	  	 	  	  
	  	
By:

	  /s/ Eric Bruno	  
	  	
Name:

	Eric Bruno	  
	  	
Title:

	Managing Director  	  
	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

Amendment 2 to RFA (PNC/Volt)

  

S-2

  

      

Exhibit B to Amendment 2 to RFA

 

SCHEDULE IV

 

Financial Covenant

 

Financial Covenant Definitions.

 

“Liquidity Level” means, at any referenced time, an amount equal to the sum of the (a) aggregate available amount to the Borrower under and pursuant to the terms of this Agreement, (b) the value of all unmatured Marketable Securities held by the Parent and its consolidated Subsidiaries and (c) unrestricted cash and cash equivalents (per bank ledger balance) on hand at such time, as determined for the Parent and its consolidated Subsidiaries on a consolidated basis; provided, however, that beginning on August 1, 2016 and at all times thereafter, at least 50% of the domestic unrestricted cash and cash equivalents (per bank ledger balance) must be on deposit in accounts maintained by one or more of the Parent and its Subsidiaries at PNC.  For the avoidance of doubt: (x) at all times the respective depositors shall have free and unencumbered access to such domestic unrestricted cash and cash equivalents (per bank ledger balance) in such respective accounts maintained at PNC; and (y) without limiting the generality of the foregoing, in no event shall any such cash and cash equivalents (per bank ledger balance) in any such account be subject to any setoff, appropriation or application except in accordance with any applicable Transaction Document and only against amounts (if any) then owing by such respective depositor to PNC.

 

Financial Covenant Thresholds.

 

Liquidity Level Amount.  For the purposes of Section 8.04(b) the amount referred to therein is as set forth in the chart below:

 

	
Time Period

	
Liquidity Level Amount1

	
Closing Date to January 30, 2016

	
$20,000,000

	
January 31, 2016 to October 30, 2016

	
$35,000,000

	
October 31, 2016 and thereafter

	
$50,000,000

 

 

1 If the Maintech Transaction has occurred, from the date of the Maintech Transaction and thereafter, the Liquidity Level Amount shall be an amount equal to Fifty Million Dollars ($50,000,000).  If the Maintech Transaction has not occurred, the Liquidity Level Amounts as reflected in the chart above shall remain unchanged.

 

 

 

Ex. B-1

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