Document:

EX-10.2: FORM OF RESTRICTED STOCK AGREEMENT

 

Exhibit 10.2

ROCKWELL AUTOMATION INC.

RESTRICTED STOCK AGREEMENT

To:

     In accordance with Section 6 of the Rockwell Automation, Inc. 2003
Directors Stock Plan, as amended (the Plan), resolutions adopted at the
February 4, 2004 meeting of the Board of Directors (the Board) of Rockwell
Automation, Inc. (the Corporation) and your election pursuant to the Plan dated
December 1, 2003, 500 shares of Common Stock of the Corporation have been
granted to you today as restricted stock in respect of your continuing service
as a director of the Corporation.
Additional shares shall be granted to you as restricted stock pursuant to the
Plan as follows:

     (i) On October 1, 2004, in respect of your service on the Board, the
number of shares whose value (based on the Closing Price on that date)
equals the amount of the annual retainer fee to be paid in restricted
stock as determined by the Board pursuant to Section 8(a) of the Plan.

     In this Restricted Stock Agreement, the shares granted today and to be
granted on the date set forth above are collectively called Restricted Shares.

     The Restricted Shares have been or will be granted to you upon the
following terms and conditions:

	1.	 	Earning of Restricted Shares

     (a) If (i) you shall continue as a director of the Corporation until
you retire from the Board under the Board’s retirement policy; or (ii) you
shall resign from the Board or cease to be a director of the Corporation by
reason of the antitrust laws, compliance with the Corporation’s conflict of
interest policies, death or disability; or (iii) a Change of Control as
defined in Article III, Section 13(I)(1) of the Corporation’s By-Laws (or
any successor provision) shall occur, then you shall be deemed to have fully
earned all the Restricted Shares subject to this Restricted Stock Agreement.

     (b) If you resign from the Board or cease to be a director of the
Corporation for any other reason, you shall be deemed not to have earned
any of the Restricted Shares and shall have no further rights with
respect thereto unless the Board shall determine, in its sole discretion,
that you have resigned from the Board or ceased to be a director by
reason of circumstances that the Board determines not to be adverse to
the best interests of the Corporation.

	2.	 	Retention of Certificates for Restricted Shares

     Certificates for the Restricted Shares and any dividends or distributions
thereon or in respect thereof that may be paid in additional shares of
Common Stock, other securities of the Corporation or securities of
another entity (Stock Dividends) shall be

 

 

delivered to and held by the
Corporation, or shall be registered in book entry form subject to the
Corporation’s instructions, until you shall have earned the Restricted
Shares in accordance with the provisions of paragraph 1. To facilitate
implementation of the provisions of this Restricted Stock Agreement, you
undertake to sign and deposit with the Corporation’s Office of the
Secretary such documents appropriate to effectuate the purpose and intent
of this Restricted Stock Agreement as the Corporation may reasonably
request from time to time.

	3.	 	Dividends and Voting Rights

     Notwithstanding the retention by the Corporation of certificates (or the
right to give instructions with respect to shares held in book entry
form) for the Restricted Shares and any Stock Dividends, you shall be
entitled to receive any dividends that may be paid in cash on, and to
vote, the Restricted Shares and any Stock Dividends held by the
Corporation (or subject to its instructions) in accordance with paragraph
2, unless and until such shares have been forfeited in accordance with
paragraph 5.

	4.	 	Delivery of Earned Restricted Shares

     As promptly as practicable after you shall have been deemed to have
earned the Restricted Shares in accordance with paragraph 1, the
Corporation shall deliver to you (or in the event of your death, to your
estate or any person who acquires your interest in the Restricted Shares
by bequest or inheritance) the Restricted Shares, together with any Stock
Dividends then held by the Corporation (or subject to its instructions).

	5.	 	Forfeiture of Unearned Restricted Shares

     Notwithstanding any other provision of this Restricted Stock Agreement,
if at any time it shall become impossible for you to earn any of the
Restricted Shares in accordance with this Restricted Stock Agreement all
the Restricted Shares, together with any Stock Dividends, then being held
by the Corporation (or subject to its instructions) in accordance with
paragraph 2, shall be forfeited, and you shall have no further rights of
any kind or nature with respect thereto. Upon any such forfeiture, the
Restricted Shares, together with any Stock Dividends, shall be
transferred to the Corporation.

	6.	 	Transferability

     The Restricted Shares and any Stock Dividends are not transferable by you
otherwise than by will or by the laws of descent and distribution and
shall be deliverable, during your lifetime, only to you.

	7.	 	Withholding

     The Corporation shall have the right, in connection with the delivery of
the Restricted Shares and any Stock Dividends subject to this Restricted
Stock Agreement, (a) to deduct from any payment otherwise due by the
Corporation to you or any other person receiving delivery of the
Restricted Shares and any Stock Dividends an

 

 

amount equal to any taxes
required to be withheld by law with respect to such delivery, (b) to
require you or any other person receiving such delivery to pay to it an
amount sufficient to provide for any such taxes so required to be withheld or (c) to sell such
number of the Restricted Shares and any Stock Dividends as may be
necessary so that the net proceeds of such sale shall be an amount
sufficient to provide for any such taxes so required to be withheld.

	8.	 	Applicable Law

     This Restricted Stock Agreement and the Corporation’s obligation to
deliver Restricted Shares and any Stock Dividends hereunder shall be
governed by and construed and enforced in accordance with the laws of
Delaware and the Federal law of the United States.

	 	 	 
	

	 	ROCKWELL AUTOMATION, INC
	 
	 	 
	 
	 	 
	

	 	By:
	 
	 	 
	 
	 	 
	

	 	W. J. Calise, Jr.

Senior Vice President, General Counsel

and Secretary
	 
	 	 
	Dated: February 4, 2004
	 	 
	 
	 	 
	Agreed to this        th day of February, 2004.
	 	 
	 
	 	 
	 
	 	 
	

	 	 
	 
	 	 
	Address:EX-10.3: FORM OF STOCK OPTION AGREEMENT

 

Exhibit 10.3

February 4, 2004

To:

     In accordance with Section 7(a)(ii) of the Corporation’s 2003 Directors Stock
Plan, as amended, and resolutions adopted at the February 4, 2004 meeting of
the Board, you have been granted today stock options to purchase 1,500 shares
of the Corporation’s Common Stock at a price per share of $30.22 and on the
other terms and conditions set forth in the attached Stock Option Terms and
Conditions (together with this letter, the Stock Option Agreement).

     Please confirm your acceptance of this grant, including the attached Stock
Option Terms and Conditions, by signing one copy at the place indicated below
and returning it to the Corporation’s Office of the Secretary in the enclosed
return envelope.

	 	 	 
	ROCKWELL AUTOMATION, INC.

	 	 
	 
	 	 
	 
	 	 
	William J. Calise, Jr.

Senior Vice President, General Counsel & Secretary
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	ACCEPTED AND AGREED TO:
	 	 
	 
	 	 
	 
	 	 
	

	 	 
	 
	 	 
	Date:                                       , 2004
	 	 

 

 

ROCKWELL AUTOMATION, INC.

2003 DIRECTORS STOCK PLAN, AS AMENDED

STOCK OPTION TERMS AND CONDITIONS

	1.	 	Definitions

     As used in these Stock Option Terms and Conditions, the following words
and phrases shall have the respective meanings ascribed to them below
unless the context in which any of them is used clearly indicates a
contrary meaning:

     (a) Change of Control: Change of Control shall have the same
meaning as such term has in Article III, Section 13(I)(1) of
Rockwell Automation’s By-Laws.

     (b) Charles Schwab: Charles Schwab & Co., Inc., the Stock Option
Administrator whom Rockwell Automation has engaged to administer
and process all Option exercises.

     (c) Customer Service Center: Charles Schwab’s Customer Service
Center that is used to facilitate Option transactions. Contact
Charles Schwab at 877.804.3529.

     (d) Director: A member of the Board of Directors of Rockwell Automation.

     (e) Exercise Request and Attestation Form: The form attached as
Exhibit 1 or any other form accepted by Charles Schwab in connection
with the use of already-owned shares to pay all or part of the
exercise price for the Option Shares to be purchased on exercise of
any of the Options.

     (f) Notice of Exercise Form: The form attached as Exhibit 2 or
any other form accepted by the Secretary of Rockwell Automation in
his sole discretion.

     (g) Options: The stock option or stock options listed in the
first paragraph of the letter dated February 4, 2004 to which these
Stock Option Terms and Conditions are attached and which together
with these Stock Option Terms and Conditions constitute the Stock
Option Agreement.

     (h) Option Shares: The shares of Rockwell Automation Common
Stock issuable or transferable on exercise of the Options.

     (i) Plan: Rockwell Automation, Inc. 2003 Directors Stock Plan,
as amended, and as such Plan may be amended and in effect at the
relevant time.

     (j) Rockwell Automation: Rockwell Automation, Inc., a Delaware
corporation.

     (k) Schwab Option Center: Charles Schwab’s stock option
management website which you can use to access your stock option
account at www.schwab.com/optioncenter.

     (l) Shares: Shares of Rockwell Automation Common Stock.

     (m) Stock Option Agreement: These Stock Option Terms and
Conditions together with the letter dated February 4, 2004 to which
they are attached.

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	2.	 	When Options May be Exercised

     The Options may be exercised, in whole or in part (but only for a whole
number of shares), and at one time or from time to time, as to one-third
(rounded to the nearest whole number) of the Option Shares during the
period beginning on February 4, 2005 and ending on February 4, 2014, as
to an additional one-third (rounded to the nearest whole number) of the
Option Shares during the period beginning on February 4, 2006 and ending
on February 4, 2014 and as to the balance of the Option Shares during the
period beginning on February 4, 2007 and ending on February 4, 2014, and
only during those periods, provided that:

     (a) if you die while a Director, your estate, any person who
acquires the Options by bequest or inheritance, or any person to whom you
have transferred the Options during your lifetime as permitted by Section
4 herein may exercise all the Options not theretofore exercised within
(and only within) the period beginning on your date of death (even if you
die before you have become entitled to exercise all or any part of the
Options) and ending three years thereafter or on February 4, 2014, if
earlier even if the Options were not exercisable at the date of death;

     (b) if you retire as a Director after reaching age 72 or before
age 72 with at least 10 years of service as a Director, you (or if
you die after your retirement date, your estate or any person who
acquires the Options by bequest or inheritance) or any person to
whom you have transferred the Options during your lifetime as
permitted by Section 4 herein may thereafter exercise all the
Options not theretofore exercised within (and only within) the
period beginning on your retirement date (even if you retire before
you have become entitled to exercise all or any part of the Options)
and ending five years thereafter or on February 4, 2014, if earlier;

     (c) if your service as a Director terminates as a result of your
disability or as a result of your resignation for reasons of the
antitrust laws, compliance with Rockwell Automation’s conflict of
interest policies or other circumstances that the Board determines
not to be adverse to the best interests of Rockwell Automation, you
(or if you die after termination of your service as a Director,
your estate or any person who acquires the Options by bequest or
inheritance) or any person to whom you have transferred the Options
during your lifetime as permitted by Section 4 herein, may
thereafter exercise the Options not theretofore exercised within
(and only within) the period beginning on your termination date and
ending one year thereafter or on February 4, 2014, if earlier, even
if the Options were not exercisable at such termination date;

     (d) if your service as a Director terminates for any other reason,
the Options shall terminate forthwith on the date of termination of
your service as a Director and shall not be exercised thereafter;
and

provided, further, that notwithstanding any other provision of the Stock
Option Agreement, if a Change of Control shall occur, then all Options
then outstanding shall become fully exercisable whether or not otherwise
then exercisable and shall be and remain exercisable for the applicable
period hereinabove in this Section 2 provided.

	3.	 	Exercise Procedure

     (a) To exercise all or any part of the Options, you (or after your
death, your estate or any person who has acquired the Options by bequest
or inheritance) must submit a Notice of Exercise to Rockwell Automation’s
Office of the Secretary (Attention: Stock Option Administration;
facsimile number 414.212.5297) or by other means acceptable to the
Secretary of Rockwell Automation, and then contact the Stock

3

 

Option
Administrator, Charles Schwab, by using the Customer Service Center as
follows:

     (i) contact the Customer Service Center by calling
877.804.3529, Monday through Friday, 9:00 a.m. to 9:00 p.m.
Eastern Time and follow the instructions provided;

     (ii) confirm the Option transaction through the
Customer Service Center;

     (iii) full payment of the exercise price for the
Option Shares to be purchased on exercise of the Options may
be made:

	 	•	 	by check (wire) to your Charles Schwab account; or
	 
	 	•	 	in already-owned Shares; or
	 
	 	•	 	in a combination of check
(wire) to your Charles Schwab account and Shares;
or
	 
	 	•	 	by authorizing Charles
Schwab or a third party approved by Rockwell
Automation to sell the Shares (or a sufficient
portion of the Shares) acquired upon exercise of
the Option; and

     (iv) in the case of an exercise of the Options by any
person other than you seeking to exercise the Options, such
documents as Charles Schwab or the Secretary of Rockwell
Automation shall require to establish to their satisfaction
that the person seeking to exercise the Options is entitled to
do so.

     (b) An exercise of the whole or any part of the Options shall be
effective:

     (i) if you elect (or after your death, the person
entitled to exercise the Options elects) to pay the exercise
price for the Option Shares entirely by check (wire), (A) upon
completion of your transaction by using the Customer Service
Center and full payment of the exercise price and withholding
taxes (if applicable) are received by Charles Schwab within
three (3) business days following the exercise; and (B)
receipt of any documents required pursuant to Section
3(a)(iv); and

     (ii) if you elect (or after your death, the person
entitled to exercise the Options elects) to pay the exercise
price of the Option Shares in Shares or in a combination of
Shares and check (wire), (A) upon completion of your
transaction by using the Customer Service Center and full
payment of the exercise price (as defined in Section 3(d)) and
withholding taxes (if applicable) are received by Charles
Schwab within three (3) business days following the exercise;
and (B) receipt of any documents required pursuant to Section
3(a)(iv).

     (c) If you choose (or after your death, the person entitled to
exercise the Options chooses) to pay the exercise price for the Option
Shares to be purchased on exercise of any of the Options entirely by
check (wire), payment must be made by:

	 	•	 	delivering to Charles Schwab a check
(wire) in the full amount of the exercise price for
those Option Shares; or
	 
	 	•	 	arranging with a stockbroker, bank or
other financial institution to deliver to Charles Schwab
full payment, by check or (if prior

4

 

arrangements are
made with Charles Schwab) by wire transfer, of the
exercise price of those Option Shares.

     In either event, in accordance with Section 3(e) herein, full payment of
the exercise price for the Option Shares purchased must be made within
three (3) business days after the exercise has been completed through the
Customer Service Center.

     (d) (i) If you choose (or after your death, the person entitled
to exercise the Options chooses) to use already-owned Shares to pay
all or part of the exercise price for the Option Shares to be
purchased on exercise of any of the Options, you (or after your
death, the person entitled to exercise the Options) must deliver to
Charles Schwab an Exercise Request and Attestation Form and cash
representing one share, per grant exercised, of Rockwell Automation
Shares to settle the rounding of the exercise costs. To perform
such a stock swap transaction or a partial swap transaction, the
Exercise Request and Attestation Form must be submitted via fax
720.785.8874 by 4:00 p.m., Eastern Time on the date of exercise.
Any questions concerning a stock swap transaction should be referred
to 877.636.7551 (Stock Option Administration Group Hotline). The
Exercise Request and Attestation Form must attest to your ownership
of shares representing:

	 	•	 	at least the number of Shares
whose value, based on the Fair Market Value (as
defined in the Plan) on the day you have exercised
your Options through the Customer Service Center,
equals the exercise price for the Option Shares; or
	 
	 	•	 	any lesser number of Shares you
desire (or after your death, the person entitled to
exercise the Options desires) to use to pay the
exercise price for those Option Shares and a check in
the amount of such exercise price less the value of
the Shares to which you are attesting, based on their
Fair Market Value on the day you have exercised your
Options through the Customer Service Center.

     (ii) If you choose (or after your death, the person
entitled to exercise the Options chooses) to use Shares
acquired upon exercise of the Options to pay all or part of
the exercise price for the remaining Option Shares to be
purchased on exercise of any of the Options, you (or after
your death, the person entitled to exercise the Options) must
contact the Customer Service Center at 877.804.3529.

     (iii) Charles Schwab will advise you (or any other
person who, being entitled to do so, exercises the Options) of
the exact number of Shares, valued in accordance with Section
7(c) of the Plan at their Fair Market Value on the date of
exercise, and any funds required to pay in full the exercise
price for the Option Shares purchased. In accordance with
Section 3(e), you (or such other person) must pay, by check,
in Shares or in a combination of check and Shares, any balance
required to pay in full the exercise price of the Option
Shares purchased within three (3) business days after the
exercise has been completed through the Customer Service
Center.

     (iv) Notwithstanding any other provision of this Stock
Option Agreement, the Secretary of Rockwell Automation may
limit the number, frequency or volume of successive exercises
of any of the Options in which payment is made, in whole or in
part, by delivery of Shares pursuant to this subparagraph (d)
to prevent unreasonable pyramiding of such exercises.

5

 

     (e) An exercise completed through the Customer Service Center,
whether or not full payment of the exercise price for the Option Shares
is received by Charles Schwab, shall constitute a binding contractual
obligation by you (or the other person
entitled to exercise the Options) to proceed with and conclude that
exercise of the Options (but only so long as you continue, or the other
person entitled to exercise the Options continues, to be entitled to
exercise the Options on that date). By your acceptance of this Stock
Option Agreement, you agree (for yourself and on behalf of any other
person who becomes entitled to exercise the Options) to deliver or cause
to be delivered to Charles Schwab any balance of the exercise price for
the Option Shares to be purchased upon the exercise pursuant to the
transaction conducted through the Customer Service Center required to pay
in full the exercise price for those Option Shares, that payment being by
check, wire transfer, in Shares or in a combination of check and Shares,
on or before the later of the third business day after the date on which
you complete the exercise through the Customer Service Center. If such
payment is not made, you (for yourself and on behalf of any other person
who becomes entitled to exercise the Options) authorize the Corporation,
in its discretion, to set off against retainer payments or other amounts
due or which may become due you (or the other person entitled to exercise
the Options) any balance of the exercise price for those Option Shares
remaining unpaid thereafter.

     (f) An Exercise Confirmation representing the number of Option
Shares purchased will be issued the third business day (i) after Charles
Schwab has received full payment therefor or (ii) at Rockwell
Automation’s or Charles Schwab’s election in their sole discretion, after
Rockwell Automation or Charles Schwab has received (x) full payment of
the exercise price of those Option Shares and (y) any reimbursement in
respect of withholding taxes due pursuant to Section 5 herein.

	4.	 	Transferability

     The Options are not transferable by you otherwise than (a) by will or by
the laws of descent and distribution; or (b) by gift to your spouse or
natural, adopted or step-children or grandchildren (Immediate Family
Members) or to a trust for the benefit of one or more of your Immediate
Family Members, or to a family charitable trust established by you or an
Immediate Family Member; provided, however, that no transfer pursuant to
this clause (b) shall be effective unless you have notified the
Corporation’s Office of the Secretary (Attention: Stock Option
Administration) in writing specifying the Option or Options transferred,
the date of the gift and the name and Social Security or other Taxpayer
Identification Number of the transferee. During your lifetime, only you
are entitled to exercise the Options unless you have transferred any
Option in accordance with this paragraph to a member of an Immediate
Family Member or a trust for the benefit of one or more of your Immediate
Family Members, in which case only that transferee (or the legal
representative of the estate or the heirs or legatees of that transferee)
shall be entitled to exercise that Option.

	5.	 	Withholding

     Rockwell Automation or Charles Schwab shall have the right, in connection
with the exercise of the Options, in whole or in part, to deduct from any
payment to be made by Rockwell Automation or Charles Schwab an amount
equal to the taxes required to be withheld by law with respect to such
exercise or to require you (or any other person entitled to exercise the
Options) to pay to it an amount sufficient to provide for any such taxes
so required to be withheld. By your acceptance of this Stock Option
Agreement, you agree (for yourself and on behalf of any other person who
becomes entitled to exercise the Options) that if Rockwell Automation or
Charles Schwab elects to require you (or such other person) to remit an
amount sufficient to pay such withholding taxes, you (or such

6

 

other
person) must remit that amount within three (3) business days after the
completion of the Option exercise. If such payment is not made, Rockwell
Automation, in its discretion, shall have the same right of set-off with
respect to payment of the withholding taxes as provided under Section
3(e) with respect to payment of the exercise price for Option Shares.

	6.	 	Headings

     The section headings contained in these Stock Option Terms and Conditions
are solely for the purpose of reference, are not part of the agreement of
the parties and shall in no way affect the meaning or interpretation of
this Stock Option Agreement.

	7.	 	References

     All references in these Stock Option Terms and Conditions to Sections,
paragraphs, subparagraphs or clauses shall be deemed to be references to
Sections, paragraphs, subparagraphs and clauses of these Stock Option
Terms and Conditions unless otherwise specifically provided.

	8.	 	Entire Agreement

     This Stock Option Agreement and the Plan embody the entire agreement and
understanding between Rockwell Automation and you with respect to the
Options, and there are no representations, promises, covenants,
agreements or understandings with respect to the Options other than those
expressly set forth in this Stock Option Agreement and the Plan.

	9.	 	Applicable Laws and Regulations

     This Stock Option Agreement and Rockwell Automation’s obligation to issue
Option Shares hereunder are subject to applicable laws and regulations.

	 	 	 
	Exhibit 1

	 	Exercise Request and Attestation Form (for use with already-owned shares)
	 
	 	 
	Exhibit 2

	 	Notice of Exercise Form

7

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