Document:

Exhibit 10.6

 

UNOVA, INC.

 

RESTRICTED STOCK UNIT AGREEMENT

 

This Restricted Stock Unit Agreement
(“Agreement”) is made as of the
6th day of May, 2004, between UNOVA, Inc., a Delaware corporation (the “Company”) and Thomas O. Miller (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, 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; and

 

WHEREAS, the Compensation, Governance and Nominating
Committee of the Board of Directors of the Company authorized the Award
represented by this Agreement on May 6, 2004 (the “Award Date”);

 

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 20,000 Restricted Stock Units (“RSUs”) comprising the right to receive a minimum of 10,000
and a maximum of 30,000 shares (as determined under Paragraph 3 of this
Agreement) 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.

 

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.         (a)       There shall
be a Period of Restriction (the “Restriction Period”)
with respect to all RSUs beginning on the Award Date and ending on the third
anniversary of the Award Date (the “Vesting Date”).  Except as otherwise provided in Paragraph 5
hereof, all RSUs still subject to restriction upon Grantee’s Termination of
Employment for any reason, including Retirement, shall be forfeited by the
Grantee.

 

(b)       Time-Based Payment.  Fifty percent of the
RSUs shall be payable in the form of 10,000 unrestricted shares of Common Stock
as soon as reasonably practicable following the Vesting Date.

 

(c)       Performance-Based Payment.  The remaining 50 percent of the RSUs shall be
payable as soon as reasonably practicable following the Vesting Date in that
number of unrestricted shares of Common Stock determined in accordance with the
following performance matrix, which uses the two scales of Intermec
Technologies Corporation’s Revenue and Operating Margin for fiscal year 2006 (adjusted
to exclude the impact of acquisitions):

 

[Confidential information
omitted here and filed separately with the Commission.]

 

provided, however, that the number of Awarded Shares paid for achievement between the levels
shown on the matrix above will be calculated using interpolation.

 

4.         Until the earlier of (a) the end of the Restriction Period,
or (b) the vesting of any of the RSUs granted hereunder in accordance with the
terms of this Agreement, 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,

 

(a)       RSUs granted hereunder still subject to restriction shall
become fully vested upon the Termination of Employment of the Grantee by reason
of the Grantee’s death and the Company shall issue to the Grantee’s estate as
soon as reasonably practicable one unrestricted share of Common Stock for each
RSU awarded hereunder;

 

(b)       RSUs granted hereunder still subject to restriction shall
become fully vested upon the Termination of Employment of Grantee by reason of
the Grantee’s Disability and payment shall be made following the Vesting Date in
accordance with Paragraph 3 of this Agreement; and

 

(c)       upon the occurrence of a Change of Control, as defined in
Section 13(b) of the Plan, payment shall be made in accordance with Section
13(a) of the Plan.

 

6.         If and when RSUs vest pursuant to this Agreement, 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 issuable
based on the Awarded Shares in accordance with Paragraph 3 hereof.

 

2

 

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 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 Mandatory Withholding Taxes.

 

OPTION 2:

 

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.

 

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

 

3

 

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 that 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.

 

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.

 

4

 

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.

 

	
   

  	
  UNOVA, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Cathy D. Younger

  
	
   

  	
   

  	
  Cathy
  D. Younger

  
	
   

  	
   

  	
  Vice
  President and Corporate Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  GRANTEE:

  	
   

  
	
   

  	
  (One of
  the boxes under Paragraph 8 must

  be checked)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Thomas O. Miller

  
	
   

  	
  Signature

  
					

 

5Exhibit 10.7

 

UNOVA,
Inc.

2004 Long-Term
Performance Share Program

 

Agreement
for the Performance Period [        ]
to [        ]

 

This Performance Share Unit
Agreement (the “Agreement”) is
made as of the        day of               ,
        , between UNOVA, Inc., a
Delaware corporation (the “Company”)
and                             
(the “Participant”).

 

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, the Committee has adopted the 2004
Long-Term Performance Share Program (the “Program”) as
a sub-plan of the Plan and authorized the Award represented by 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 Participant hereby agree as follows:

 

Article 1.  Award

 

The Participant is hereby
awarded, as a matter of separate inducement and agreement, and not in lieu of
salary or other compensation for services,
          Performance Share Units
(the “Target Award”), on the terms and
conditions hereinafter set forth. The number of Performance Share Units (“PSUs”) that the Participant may earn under this Agreement
shall range from 0% to 200% of the Target Award (the “Awarded
Shares”), as determined by the achievement of the performance
measures set forth in Article 3 of this Agreement. The Awarded Shares may be
paid in either shares of the common stock, par value $.01 per share, of the
Company (the “Common Stock”) or cash, as
determined by the Committee, as set forth in Article 6 of this Agreement. The
Participant shall have no obligation to pay the Company additional consideration
for the Awarded Shares.

 

The Plan and the Program,
copies of which have been made available to the Participant, are incorporated
herein by reference and made part of this Agreement as if fully set forth
herein. Capitalized terms used in this Agreement that are not defined herein
shall have the meanings assigned to such terms in the Plan and the Program.
This Agreement is subject to, and the Company and the Participant agree to be
bound by, all of the terms and conditions of the Plan and the Program as the
same exist at the time this Agreement became effective. The Plan and the
Program shall control in the event there is any express conflict between the
terms hereof and either the Plan or the Program 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, the Program and this Agreement in accordance with Section 12 of the Plan,
but no such subsequent amendment, modification, restatement, or termination of
the Plan, the Program or this Agreement shall adversely affect in any material
way the Participant’s rights under this Agreement without the Participant’s
written consent.  This Agreement shall be
subject, without further action by the Company or the Participant, to such
amendment, modification, or restatement.

 

 

Article 2.  Performance Period

 

For all purposes of this Agreement, “Performance
Period” means January 1,           
through December 31,          .

 

Article 3.  Achievement of Performance Measures

 

The
number of Awarded Shares to be earned under this Agreement shall be based upon
the achievement of the following Performance Measures set by the
Committee: (a) [Peformance Measure 1] and (b) [Performance Measure 2], in accordance with the following matrix:

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The number of Awarded Shares earned for
achievement between the levels shown in the matrix will be calculated using
interpolation.

 

Article 4. Termination Provisions

 

Except as provided below, a
Participant shall be eligible for payment of Awarded Shares, as determined in
Section 3, only if the Participant’s employment with the Company continues
through the end of the Performance Period.

 

In the event of a Participant’s
Disability or Retirement at age 65 or later during the Performance Period, a
pro rata payment will be made for the number of full months worked during the
Performance Period, based on achievement of the Performance Measures over the
entire Performance Period.  In the case
of death, payment shall be calculated and paid as provided in the Program.

 

In the event of a Change of
Control (as defined in the Plan), all outstanding Awards will automatically
vest and be paid out in cash at the Target Award level or the actual
performance level as of the Change of Control, whichever is higher.

 

Article
5. Rights as a Shareholder

 

During the Performance Period,
the Participant shall
have no rights of a shareholder with respect to the PSUs or the Awarded Shares. Notwithstanding the foregoing, the
Participant shall be entitled to receive any dividend equivalents declared by
the Board, as provided in the Program.

 

Article 6. Form and Timing
of Payment

 

Payment of Awarded Shares
shall be made within ninety (90) calendar days following the close of the
Performance Period, subject to the following provisions.

 

For Participants who are
corporate officers and have met their minimum ownership levels under the Guidelines for Corporate Officers Trading in
UNOVA, Inc. Securities (the “Guidelines”), and for Participants who are not subject to the
Guidelines, the Awarded Shares

 

2

 

shall be paid in cash based on the average of the high and low
daily sale prices of the Common Stock for the last 30 trading days of the Performance Period.

 

For Participants who are
corporate officers and have not met their minimum ownership levels under the
Guidelines, the Awarded Shares shall be paid in Common Stock, in cash, or any
combination of Common Stock and cash, as determined by the Committee in its
sole discretion.

 

Article
7. Nontransferability

 

PSUs
may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution.  The Participant’s rights under this Agreement
shall be exercisable during the Participant’s lifetime only by the Participant
or the Participant’s legal representative.

 

Article 8. Administration

 

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, the Program and this Agreement, all of which shall be binding upon
the Participant.

 

Article 9.  Withholding Taxes

 

No later than the date as of
which an amount first becomes includable in the gross income of the Participant
for federal income tax purposes with respect to any Awarded Shares, the Participant
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 Participant 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 Participant. Participant, therefore, hereby
unconditionally and irrevocably elects, notwithstanding anything to the
contrary in this Article 9 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 Participant’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 Taxes in respect of any cash payment to Participant
shall be withheld from any such cash payment:

 

3

 

OPTION 1:

 

o                        Authorizing and directing the Company to
deduct from the total number of shares of Common Stock issued and deliverable
to Participant 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 Common Stock owned by the Participant 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 Participant’s election shall be deemed to be Option 1, and
the Company shall proceed accordingly.

 

Article 10. Miscellaneous

 

A.        Participant understands and acknowledges
that Participant is one of a limited number of employees of the Company and its
Subsidiaries and Affiliates who have been selected to receive grants of PSUs
and that Participant’s Award is considered Company confidential information. Participant
hereby covenants and agrees not to disclose the Award of PSUs pursuant to this
Agreement to any other person except (i) Participant’s immediate family and
legal or financial advisors who agree to maintain the confidentiality of this
Agreement, (ii) 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.

 

B.        The grant of PSUs to the Participant in any year shall give
the Participant 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 Program
and this Agreement were not in effect. The right and power of the Company and
its Subsidiaries and Affiliates to dismiss or discharge the Participant is
specifically and unqualifiedly unimpaired by this Agreement.

 

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

 

4

 

D.        This Agreement, including the provisions of the Plan and the
Program 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 Participant.

 

E.         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 and the Program, shall inure to the benefit of and shall
be binding upon the Participant’s heirs, legal representatives, and successors.

 

F.         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.

 

G.        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 Participant and by the Company through its duly
authorized officer as of the day and year first above written.

 

	
   

  	
  UNOVA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  [Name]

  
	
   

  	
  [Title]

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT:

  
	
   

  	
  (One of
  the boxes under Article 9 must be

  checked)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
  Social
  Security Number

  

 

5

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