Document:

Exhibit 4(r)

 

FORM OF

 

PREFERRED SECURITIES GUARANTEE AGREEMENT

 

AMERIPRISE CAPITAL TRUST [  ]

 

 

DATED AS OF                             

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
  DEFINITIONS
  AND INTERPRETATION

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Definitions and Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
  TRUST
  INDENTURE ACT

  
	
   

  
	
  Section 2.1

  	
  Trust Indenture Act; Application

  	
  4

  
	
  Section 2.2

  	
  Lists of Holders

  	
  4

  
	
  Section 2.3

  	
  Reports by the Preferred Guarantee Trustee

  	
  5

  
	
  Section 2.4

  	
  Periodic Reports to Preferred Guarantee Trustee

  	
  5

  
	
  Section 2.5

  	
  Evidence of Compliance with Conditions Precedent

  	
  5

  
	
  Section 2.6

  	
  Events of Default; Waiver

  	
  5

  
	
  Section 2.7

  	
  Event of Default; Notice

  	
  5

  
	
  Section 2.8

  	
  Conflicting Interests

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
  POWERS, DUTIES
  AND RIGHTS OF PREFERRED GUARANTEE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Powers and Duties of the Preferred Guarantee Trustee

  	
  6

  
	
  Section 3.2

  	
  Certain Rights of Preferred Guarantee Trustee

  	
  8

  
	
  Section 3.3

  	
  Not Responsible for Recitals or Issuance of Preferred Securities
  Guarantee

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
  PREFERRED
  GUARANTEE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Preferred Guarantee Trustee: Eligibility

  	
  11

  
	
  Section 4.2

  	
  Appointment, Removal and Resignation of Preferred Guarantee Trustee

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
  GUARANTEE

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Guarantee

  	
  12

  
	
  Section 5.2

  	
  Waiver of Notice and Demand

  	
  12

  
	
  Section 5.3

  	
  Obligations Not Affected

  	
  13

  
	
  Section 5.4

  	
  Rights of Holders

  	
  13

  
	
  Section 5.5

  	
  Guarantee of Payment

  	
  14

  
	
  Section 5.6

  	
  Subrogation

  	
  14

  
	
  Section 5.7

  	
  Independent Obligations

  	
  14

  
				

 

i

 

	
  ARTICLE VI

  
	
  LIMITATION OF TRANSACTIONS;
  SUBORDINATION

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Limitation of Transactions

  	
  14

  
	
  Section 6.2

  	
  Subordination

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
  TERMINATION

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Termination

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
  INDEMNIFICATION

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Exculpation

  	
  16

  
	
  Section 8.2

  	
  Indemnification

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Successors and Assigns

  	
  17

  
	
  Section 9.2

  	
  Amendments

  	
  17

  
	
  Section 9.3

  	
  Notices

  	
  17

  
	
  Section 9.4

  	
  Benefit

  	
  18

  
	
  Section 9.5

  	
  Governing Law

  	
  18

  

 

ii

 

PREFERRED SECURITIES GUARANTEE AGREEMENT

 

This GUARANTEE AGREEMENT (the “Preferred Securities Guarantee”), dated
as of                               ,
is executed and delivered by Ameriprise Financial, Inc., a Delaware
corporation (the “Guarantor”), and U.S. Bank National Association, as trustee
(the “Preferred Guarantee Trustee”), for the benefit of the Holders (as defined
herein) from time to time of the Preferred Securities (as defined herein) of
Ameriprise Capital Trust [  ], a Delaware
statutory trust (the “Issuer”).

 

WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”),
dated as of                       ,
among the trustees of the Issuer named therein, the Guarantor, as sponsor, and
the holders from time to time of undivided beneficial interests in the assets
of the Issuer, the Issuer is issuing on the date hereof [            ]
preferred securities, having an aggregate liquidation amount of $[              ],
designated the [            ]
Preferred Securities (the “Preferred Securities”).

 

WHEREAS, as incentive for the Holders to purchase the Preferred
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Preferred Securities Guarantee, to pay to the
Holders of the Preferred Securities the Guarantee Payments (as defined herein)
and to make certain other payments on the terms and conditions set forth
herein.

 

NOW, THEREFORE, in consideration of the purchase by each Holder of
Preferred Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Preferred Securities
Guarantee for the benefit of the Holders.

 

ARTICLE I

 

DEFINITIONS AND INTERPRETATION

 

Section 1.1            Definitions and Interpretation. In
this Preferred Securities Guarantee, unless the context otherwise requires:

 

(a)           capitalized terms used
in this Preferred Securities Guarantee but not defined in the preamble above
have the respective meanings assigned to them in this Section 1.1;

 

(b)           terms defined in the
Declaration as at the date of execution of this Preferred Securities Guarantee
have the same meaning when used in this Preferred Securities Guarantee unless
otherwise defined in this Preferred Securities Guarantee;

 

(c)           a term defined anywhere
in this Preferred Securities Guarantee has the same meaning throughout;

 

1

 

(d)           all references to “the
Preferred Securities Guarantee” or “this Preferred Securities Guarantee” are to
this Preferred Securities Guarantee as modified, supplemented or amended from
time to time;

 

(e)           all references in this
Preferred Securities Guarantee to Articles and Sections are to Articles and
Sections of this Preferred Securities Guarantee, unless otherwise specified; a
term defined in the Trust Indenture Act has the same meaning when used in this
Preferred Securities Guarantee, unless otherwise defined in this Preferred
Securities Guarantee or unless the context otherwise requires; and

 

(f)            a reference to the
singular includes the plural and vice versa.

 

“AUTHORIZED OFFICER” of a Person means any Person that is authorized to
legally bind such Person; provided, however, that the Authorized
Officer signing an Officers’ Certificate given pursuant to Section 314(a)(4) of
the Trust Indenture Act shall be the principal executive, financial or
accounting officer of such Person.

 

“CORPORATE TRUST OFFICE” means the office of the Preferred Guarantee
Trustee at which the corporate trust business of the Preferred Guarantee
Trustee shall, at any particular time, be principally administered, which
office at the date of execution of this Agreement is located at, U.S. Bank
National Association, 300 Delaware Avenue, Wilmington, DE 19801, Attention:
Corporate Trust Administration.

 

“COVERED PERSON” means any Holder or beneficial owner of Preferred
Securities.

 

“DECLARATION” has the meaning assigned thereto in the recitals hereto.

 

“EVENT OF DEFAULT” means (i) a default by the Guarantor in any of
its payment obligations under this Guarantee Agreement, and the continuance of
such default for five days, or (ii) a default by the Guarantor in any
other obligation hereunder, and the continuance of such default for a period of
30 days after there has been given, by registered or certified mail, to the
Guarantor by the Preferred Guarantee Trustee or to the Guarantor and the
Preferred Guarantee Trustee by the Holders of at least 25% in liquidation
amount (including the stated amount that would be paid on redemption,
liquidation or otherwise, plus accumulated and unpaid Distributions to the date
upon which the voting percentages are determined) of all Preferred Securities a
written notice specifying such default and requiring it to be remedied.

 

“GUARANTEE PAYMENTS” means the following payments or distributions,
without duplication, with respect to the Preferred Securities, to the extent
not paid or made by the Issuer: (i) any accumulated and unpaid
Distributions (as defined in the Declaration) that are required to be paid on
such Preferred Securities to the extent the Issuer shall have funds legally
available therefor, (ii) the redemption price (the “Redemption Price”),
and all accumulated and unpaid Distributions to the date of redemption, to the
extent the Issuer has funds legally available therefor, with respect to any
Preferred Securities called for redemption by the Issuer, and (iii) upon a
voluntary or involuntary dissolution, winding-up or termination of the Issuer
(other than in connection with the redemption of all of the Preferred
Securities or the distribution of the Debt

 

2

 

Securities to the Holders in exchange for Preferred Securities as
provided in the Declaration), the lesser of (a) the aggregate of the
liquidation amount and all accumulated and unpaid Distributions on the
Preferred Securities to the date of payment, to the extent the Issuer shall
have funds legally available therefor, and (b) the amount of assets of the
Issuer remaining available for distribution to Holders of Preferred Securities
then outstanding upon the liquidation of the Issuer (in either case, the “Liquidation
Distribution”).

 

“GUARANTOR” has the meaning assigned thereto in the recitals hereto.

 

“HOLDER” shall mean any holder, as registered on the books and records
of the Issuer, of any Preferred Securities; provided, however,
that, in determining whether the holders of the requisite percentage of
Preferred Securities have given any request, notice, consent or waiver
hereunder, “Holder” shall not include the Guarantor or any Affiliate of the
Guarantor.

 

“INDEMNIFIED PERSON” means the Preferred Guarantee Trustee, any
Affiliate of the Preferred Guarantee Trustee, or any officers, directors,
shareholders, members, partners, employees, representatives, nominees,
custodians or agents of the Preferred Guarantee Trustee.

 

“INDENTURE” means the Junior Subordinated Indenture dated as of May 5,
2006 between the Guarantor and U.S. Bank National Association, as trustee, or,
if further amended or supplemented, as so amended or supplemented or both, and
shall include the forms and terms of a particular series of securities
established as contemplated thereunder.

 

“ISSUER” has the meaning assigned thereto in the recitals hereto.

 

“LIST OF HOLDERS” shall have the meaning set forth in Section 2.2.

 

“MAJORITY IN LIQUIDATION AMOUNT OF THE PREFERRED SECURITIES” means,
except as provided in the terms of the Preferred Securities, or except as
provided by the Trust Indenture Act, a vote by Holder(s), voting separately as
a class, of more than 50% of the liquidation amount (including the stated
amount that would be paid on redemption, liquidation or otherwise, plus
accumulated and unpaid Distributions to the date upon which the voting
percentages are determined) of all Preferred Securities.

 

“PERSON” means any individual, corporation, estate, partnership,
limited liability company, joint venture, association, joint stock company,
trust, unincorporated association or government or any agency or political
subdivision thereof, or any other entity of whatever nature.

 

“PREFERRED GUARANTEE TRUSTEE” means U.S. Bank National Association,
until a Successor Preferred Guarantee Trustee has been appointed and has
accepted such appointment pursuant to the terms of this Preferred Securities
Guarantee and thereafter means each such Successor Preferred Guarantee Trustee.

 

“PREFERRED SECURITIES” has the meaning assigned thereto in the recitals
hereto.

 

3

 

“PREFERRED SECURITIES GUARANTEE” has the meaning assigned thereto in
the recitals hereto.

 

“RELEVANT JURISDICTION” means the United States.

 

“RELEVANT TAX” means any present or future taxes, duties, assessments
or governmental charges of whatever nature, imposed or levied by or on behalf
of any Relevant Jurisdiction or any authority therein or thereof having the
power to tax.

 

“RESPONSIBLE OFFICER” means, with respect to the Preferred Guarantee
Trustee, any officer within the Corporate Trust Office of the Preferred
Guarantee Trustee, including any vice president, any assistant vice president,
any assistant treasurer or other officer of the Corporate Trust Office of the
Preferred Guarantee Trustee customarily performing functions similar to those
performed by any of the above designated officers, and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of that officer’s knowledge of and familiarity with the
particular subject.

 

“SUCCESSOR PREFERRED GUARANTEE TRUSTEE” means a successor Preferred
Guarantee Trustee possessing the qualifications to act as Preferred Guarantee
Trustee under Section 4.1.

 

ARTICLE II

 

TRUST INDENTURE ACT

 

Section 2.1            Trust Indenture Act; Application.

 

(a)           This Preferred
Securities Guarantee is subject to the provisions of the Trust Indenture Act
that are required to be part of this Preferred Securities Guarantee and
shall, to the extent applicable, be governed by such provisions; and

 

(b)           If and to the extent
that any provision of this Preferred Securities Guarantee limits, qualifies or
conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.

 

Section 2.2            Lists of Holders.

 

(a)           The Guarantor shall
provide the Preferred Guarantee Trustee with a list, in such form as the
Preferred Guarantee Trustee may reasonably require, of the names and
addresses of the Holders (“List of Holders”), within 30 days of receipt by the
Guarantor of a written request for a List of Holders as of a date no more than
15 days before such List of Holders is given to the Preferred Guarantee
Trustee, in each case to the extent such information is in the possession or
control of the Guarantor and is not identical to a previously supplied list of
Holders or has not otherwise been received by the Preferred Guarantee Trustee
in its capacity as such. The Preferred Guarantee Trustee may destroy any
List of Holders previously given to it on receipt of a new List of Holders.

 

4

 

(b)           The Preferred Guarantee
Trustee shall comply with its obligations under Sections 311(a), 311(b) and
Section 312(b) of the Trust Indenture Act.

 

Section 2.3            Reports by the Preferred Guarantee
Trustee. Within 60 days after May 15 of each year, the Preferred
Guarantee Trustee shall provide to the Holders such reports as are required by Section 313
of the Trust Indenture Act, if any, in the form and in the manner provided
by Section 313 of the Trust Indenture Act. The Preferred Guarantee Trustee
shall also comply with the requirements of Section 313(d) of the
Trust Indenture Act.

 

Section 2.4            Periodic Reports to Preferred Guarantee
Trustee. The Guarantor shall provide to the Preferred Guarantee Trustee
such documents, reports and information (if any) as are required by Section 314
and the compliance certificate required by Section 314 of the Trust
Indenture Act in the form, the manner and at the times required by Section 314
of the Trust Indenture Act.

 

Delivery of such reports, information and documents to the Preferred
Guarantee Trustee is for informational purposes only and the Preferred
Guarantee Trustee’s receipt of such shall not constitute constructive notice of
any information contained therein, including the Guarantor’s compliance with
any of its covenants hereunder (as to which the Preferred Guarantee Trustee is
entitled to rely exclusively on Officers’ Certificates).

 

Section 2.5            Evidence of Compliance with Conditions
Precedent. The Guarantor shall provide to the Preferred Guarantee
Trustee such evidence of compliance with any conditions precedent, if any,
provided for in this Preferred Securities Guarantee that relate to any of the
matters set forth in Section 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given by an officer pursuant to Section 314(c)(1) may be
given in the form of an Officers’ Certificate.

 

Section 2.6            Events of Default; Waiver. The
Holders of a Majority in Liquidation Amount of the Preferred Securities may, by
vote, on behalf of the Holders of all of the Preferred Securities, waive any
past Event of Default and its consequences except an Event of Default in
respect of a covenant or provision hereof which cannot be modified or amended
without the consent of each Holder of Preferred Securities. Upon such waiver,
any such Event of Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Preferred Securities Guarantee, but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

 

Section 2.7            Event of Default; Notice.

 

(a)           The Preferred Guarantee
Trustee shall, within 90 days after the occurrence of an Event of Default
actually known to a Responsible Officer of the Preferred Guarantee Trustee,
transmit by mail, first class postage prepaid, to the Holders of the
Preferred Securities, notices of all such Events of Default unless such
defaults have been cured before the giving of such notice, provided that the
Preferred Guarantee Trustee shall be protected in withholding such notice if
and so long as a Responsible Officer of the Preferred Guarantee Trustee in good
faith

 

5

 

determines that the withholding of such notice is in the interests of
the Holders of the Preferred Securities.

 

(b)           The Preferred Guarantee
Trustee shall not be deemed to have knowledge of any Event of Default unless a
Responsible Officer of the Preferred Guarantee Trustee shall have obtained
actual knowledge thereof or shall have received written notice of such Event of
Default.

 

Section 2.8            Conflicting Interests. The
Declaration shall be deemed to be specifically described in this Preferred
Securities Guarantee for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.

 

ARTICLE III

 

POWERS, DUTIES AND RIGHTS OF PREFERRED
GUARANTEE TRUSTEE

 

Section 3.1            Powers and Duties of the Preferred
Guarantee Trustee.

 

(a)           This Preferred
Securities Guarantee shall be held by the Preferred Guarantee Trustee for the
benefit of the Holders and the Preferred Guarantee Trustee shall not transfer
this Preferred Securities Guarantee to any Person except a Holder exercising
his or her rights pursuant to Section 5.4(b) or to a Successor
Preferred Guarantee Trustee on acceptance by such Successor Preferred Guarantee
Trustee of its appointment to act as Successor Preferred Guarantee Trustee. The
right, title and interest of the Preferred Guarantee Trustee shall
automatically vest in any Successor Preferred Guarantee Trustee, and such vesting
and succession of title shall be effective whether or not conveyancing
documents have been executed and delivered pursuant to the appointment of such
Successor Preferred Guarantee Trustee.

 

(b)           If an Event of Default
actually known to a Responsible Officer of the Preferred Guarantee Trustee has
occurred and is continuing, the Preferred Guarantee Trustee shall enforce this
Preferred Securities Guarantee for the benefit of the Holders.

 

(c)           The Preferred Guarantee
Trustee, before the occurrence of any Event of Default and after the curing or
waiver of all Events of Default that may have occurred, shall undertake to
perform only such duties as are specifically set forth in this Preferred
Securities Guarantee, and no implied covenants or obligations shall be read
into this Preferred Securities Guarantee against the Preferred Guarantee
Trustee. In case an Event of Default has occurred (that has not been cured or
waived pursuant to Section 2.6) and is actually known to a Responsible
Officer of the Preferred Guarantee Trustee, the Preferred Guarantee Trustee
shall exercise such of the rights and powers vested in it by this Preferred
Securities Guarantee, and shall use the same degree of care and skill in its
exercise thereof as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

 

(d)           No provision of this
Preferred Securities Guarantee shall be construed to relieve the Preferred
Guarantee Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

 

6

 

(i)            prior
to the occurrence of any Event of Default and after the curing or waiving of
all such Events of Default that may have occurred:

 

(A)          the
duties and obligations of the Preferred Guarantee Trustee shall be determined
solely by the express provisions of this Preferred Securities Guarantee, and
the Preferred Guarantee Trustee shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this Preferred
Securities Guarantee, and no implied covenants or obligations shall be read
into this Preferred Securities Guarantee against the Preferred Guarantee
Trustee; and

 

(B)           in
the absence of bad faith on the part of the Preferred Guarantee Trustee,
the Preferred Guarantee Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Preferred Guarantee Trustee and
conforming to the requirements of this Preferred Securities Guarantee; but in
the case of any such certificates or opinions that by any provision hereof are
specifically required to be furnished to the Preferred Guarantee Trustee, the
Preferred Guarantee Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this
Preferred Securities Guarantee (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein);

 

(ii)           the
Preferred Guarantee Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer of the Preferred Guarantee Trustee,
unless it shall be proved that the Preferred Guarantee Trustee was negligent in
ascertaining the pertinent facts upon which such judgment was made;

 

(iii)          the
Preferred Guarantee Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a Majority in Liquidation Amount of
the Preferred Securities relating to the time, method and place of conducting
any proceeding for any remedy available to the Preferred Guarantee Trustee, or
exercising any trust or power conferred upon the Preferred Guarantee Trustee
under this Preferred Securities Guarantee; and

 

7

 

(iv)          no
provision of this Preferred Securities Guarantee shall require the Preferred
Guarantee Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers, if the Preferred Guarantee Trustee shall have
reasonable grounds for believing that the repayment of such funds or liability
is not reasonably assured to it under the terms of this Preferred Securities
Guarantee or indemnity, reasonably satisfactory to the Preferred Guarantee
Trustee, against such risk or liability is not reasonably assured to it.

 

Section 3.2            Certain Rights of Preferred Guarantee
Trustee.

 

(a)           Subject
to the provisions of Section 3.1:

 

(i)            The
Preferred Guarantee Trustee may conclusively rely, and shall be fully
protected in acting or refraining from acting upon, any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to
have been signed, sent or presented by the proper party or parties.

 

(ii)           Any
direction or act of the Guarantor contemplated by this Preferred Securities
Guarantee shall be sufficiently evidenced by an Officers’ Certificate.

 

(iii)          Whenever,
in the administration of this Preferred Securities Guarantee, the Preferred
Guarantee Trustee shall deem it desirable that a matter be proved or
established before taking, suffering or omitting any action hereunder, the
Preferred Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and
conclusively rely upon an Officers’ Certificate which, upon receipt of such
request, shall be promptly delivered by the Guarantor.

 

(iv)          The
Preferred Guarantee Trustee shall have no duty to see to any recording, filing
or registration of any instrument (or any rerecording, refiling or
re-registration thereof).

 

(v)           The
Preferred Guarantee Trustee may at the expense of the Guarantor consult
with counsel of its selection, and the advice or opinion of such counsel with
respect to legal matters shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in accordance with such advice or opinion. Such counsel may be

 

8

 

counsel to the Guarantor or any of its Affiliates and may include
any of its employees. The Preferred Guarantee Trustee shall have the right at
any time to seek instructions concerning the administration of this Preferred
Securities Guarantee from any court of competent jurisdiction.

 

(vi)          The
Preferred Guarantee Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Preferred Securities Guarantee at the
request or direction of any Holder, unless such Holder shall have provided to
the Preferred Guarantee Trustee such security and indemnity, reasonably
satisfactory to the Preferred Guarantee Trustee, against the costs, expenses
(including attorneys’ fees and expenses and the expenses of the Preferred
Guarantee Trustee’s agents, nominees or custodians) and liabilities that might
be incurred by it in complying with such request or direction, including such
reasonable advances as may be requested by the Preferred Guarantee
Trustee; PROVIDED that nothing contained in this Section 3.2(a)(vi) shall
be taken to relieve the Preferred Guarantee Trustee, upon the occurrence of an
Event of Default, of its obligation to exercise the rights and powers vested in
it by this Preferred Securities Guarantee.

 

(vii)         The
Preferred Guarantee Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but
the Preferred Guarantee Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit but
shall incur no liability of any kind by reason of such inquiry or
investigation.

 

(viii)        The
Preferred Guarantee Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents, nominees, custodians or attorneys, and the Preferred Guarantee Trustee
shall not be responsible for any misconduct or negligence on the part of
any agent or attorney appointed with due care by it hereunder.

 

(ix)           Any
action taken by the Preferred Guarantee Trustee or its agents hereunder shall
bind the Holders of the Preferred Securities and the signature of the Preferred
Guarantee Trustee or its agents alone shall be sufficient and effective to perform any
such action. No third party shall be required to inquire as to the authority of
the Preferred Guarantee Trustee to so act or as to its compliance with any of
the terms and provisions of this Preferred Securities

 

9

 

Guarantee, both of which shall be conclusively evidenced by the
Preferred Guarantee Trustee’s or its agent’s taking such action.

 

(x)            Whenever
in the administration of this Preferred Securities Guarantee the Preferred
Guarantee Trustee shall deem it desirable to receive instructions with respect
to enforcing any remedy or right or taking any other action hereunder, the
Preferred Guarantee Trustee (i) may request instructions from the
Holders of a Majority in Liquidation Amount of the Preferred Securities, (ii) may refrain
from enforcing such remedy or right or taking such other action until such
written instructions are received and (iii) shall be protected in
conclusively relying on or acting in accordance with such instructions.

 

(xi)           The
Preferred Securities Trustee shall not be liable for any action taken,
suffered, or omitted to be taken by it in good faith and reasonably believed by
it to be authorized or within the discretion or rights or powers conferred upon
it by this Preferred Securities Guarantee.

 

(xii)          The
rights, privileges, protections, immunities and benefits given to the Preferred
Guarantee Trustee, including, without limitation, its right to be indemnified,
are extended to, and shall be enforceable by, the Preferred Guarantee Trustee
in each of its capacities hereunder, and to each agent, custodian and other
Person employed to act hereunder.

 

(b)           No provision of this
Preferred Securities Guarantee shall be deemed to impose any duty or obligation
on the Preferred Guarantee Trustee to perform any act or acts or exercise
any right, power, duty or obligation conferred or imposed on it in any jurisdiction
in which it shall be illegal, or in which the Preferred Guarantee Trustee shall
be unqualified or incompetent in accordance with applicable law, to perform any
such act or acts or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Preferred Guarantee Trustee
shall be construed to be a duty.

 

Section 3.3            Not Responsible for Recitals or Issuance
of Preferred Securities Guarantee. The recitals contained in this
Preferred Securities Guarantee shall be taken as the statements of the
Guarantor, and the Preferred Guarantee Trustee does not assume any
responsibility for their correctness. The Preferred Guarantee Trustee makes no
representations as to the validity or sufficiency of this Preferred Securities
Guarantee.

 

10

 

ARTICLE IV

 

PREFERRED GUARANTEE TRUSTEE

 

Section 4.1            Preferred Guarantee Trustee: Eligibility.

 

(a)           There
shall at all times be a Preferred Guarantee Trustee which shall:

 

(i)            not
be an Affiliate of the Guarantor; and

 

(ii)           be
a corporation organized and doing business under the laws of the United States
of America or any State or Territory thereof or of the District of Columbia, or
a corporation or Person permitted by the Securities and Exchange Commission to
act as an institutional trustee under the Trust Indenture Act, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least 50 million U.S. dollars ($50,000,000), and subject to
supervision or examination by federal, state, territorial or District of
Columbia authority. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of the supervising or
examining authority referred to above, then, for the purposes of this Section 4.1(a)(ii),
the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.

 

(b)           If at any time the
Preferred Guarantee Trustee shall cease to be eligible to so act under Section 4.1(a),
the Preferred Guarantee Trustee shall immediately resign in the manner and with
the effect set out in Section 4.2(c).

 

(c)           If the Preferred
Guarantee Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act, the Preferred
Guarantee Trustee and Guarantor shall in all respects comply with the
provisions of Section 310(b) of the Trust Indenture Act.

 

Section 4.2            Appointment, Removal and Resignation of
Preferred Guarantee Trustee.

 

(a)           Subject to Section 4.2(b),
the Preferred Guarantee Trustee may be appointed or removed without cause
at any time by the Guarantor.

 

(b)           The Preferred Guarantee
Trustee shall not be removed in accordance with Section 4.2(a) until
a Successor Preferred Guarantee Trustee has been appointed and has accepted
such appointment by written instrument executed by such Successor Preferred
Guarantee Trustee and delivered to the Guarantor.

 

11

 

(c)           The Preferred Guarantee
Trustee appointed to office shall hold office until a Successor Preferred
Guarantee Trustee shall have been appointed or until its removal or resignation.
The Preferred Guarantee Trustee may resign from office (without need for
prior or subsequent accounting) by an instrument in writing executed by the
Preferred Guarantee Trustee and delivered to the Guarantor, which resignation
shall not take effect until a Successor Preferred Guarantee Trustee has been
appointed and has accepted such appointment by instrument in writing executed
by such Successor Preferred Guarantee Trustee and delivered to the Guarantor
and the resigning Preferred Guarantee Trustee.

 

(d)           If no Successor
Preferred Guarantee Trustee shall have been appointed and accepted appointment
as provided in this Section 4.2 within 60 days after delivery of an
instrument of resignation or removal, the Preferred Guarantee Trustee resigning
or being removed may petition, at the expense of the Guarantor, any court
of competent jurisdiction for appointment of a Successor Preferred Guarantee
Trustee. Such court may thereupon, after prescribing such notice, if any,
as it may deem proper, appoint a Successor Preferred Guarantee Trustee.

 

(e)           No Preferred Guarantee
Trustee shall be liable for the acts or omissions to act of any Successor
Preferred Guarantee Trustee.

 

(f)            Upon termination of
this Preferred Securities Guarantee or removal or resignation of the Preferred
Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to
the Preferred Guarantee Trustee all amounts to which it is entitled to the date
of such termination, removal or resignation.

 

ARTICLE V

 

GUARANTEE

 

Section 5.1            Guarantee. The Guarantor
irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments (without duplication of amounts theretofore paid by the
Issuer), as and when due. The Guarantor’s obligation to make a Guarantee
Payment may be satisfied by direct payment of the required amounts by the
Guarantor to the Holders or by causing the Issuer to pay such amounts to the
Holders. The Guarantor reserves the right to (a) set-off against any
payment owing hereunder any amounts owing by the Holders to the Issuer Trust
and (b) assert defenses which the Issuer may have to payment of the
Guarantee Payments other than defenses arising from the bankruptcy or
insolvency of the Issuer and other defenses expressly waived hereby.

 

Section 5.2            Waiver of Notice and Demand. The
Guarantor hereby waives notice of acceptance of this Preferred Securities
Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right or remedy to require a proceeding
first against the Issuer or any other Person before proceeding directly against
the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
redemption and all other notices and demands.

 

12

 

Section 5.3            Obligations Not Affected. The
obligations, covenants, agreements and duties of the Guarantor under this
Preferred Securities Guarantee shall in no way be affected or impaired by
reason of the happening from time to time of any of the following:

 

(a)           the release or waiver,
by operation of law or otherwise, of the performance or observance by the
Issuer of any express or implied agreement, covenant, term or condition
relating to the Preferred Securities to be performed or observed by the Issuer;

 

(b)           the extension of time
for the payment by the Issuer of all or any portion of the Distributions,
Redemption Price, Liquidation Distribution or any other sums payable under the
terms of the Preferred Securities or the extension of time for the performance
of any other obligation under, arising out of, or in connection with, the
Preferred Securities (other than an extension of time for payment of
Distributions, Redemption Price, Liquidation Distribution or other sum payable
that results from the extension of any interest payment period on the Debt
Securities permitted by the Indenture);

 

(c)           any failure, omission,
delay or lack of diligence on the part of the Holders to enforce, assert
or exercise any right, privilege, power or remedy conferred on the Holders
pursuant to the terms of the Preferred Securities, or any action on the part of
the Issuer granting indulgence or extension of any kind;

 

(d)           the voluntary or
involuntary liquidation, dissolution, sale of any collateral, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of debt of, or other
similar proceedings affecting, the Issuer or any of the assets of the Issuer;

 

(e)           any invalidity of, or
defect or deficiency in, the Preferred Securities;

 

(f)            the settlement or
compromise of any obligation guaranteed hereby or hereby incurred; or

 

(g)           any other circumstance
whatsoever that might otherwise constitute a legal or equitable discharge or
defense of a guarantor, it being the intent of this Section 5.3 that the
obligations of the Guarantor hereunder shall be absolute and unconditional
under any and all circumstances.

 

There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing.

 

Section 5.4            Rights of Holders.

 

(a)           The Holders of a
Majority in Liquidation Amount of the Preferred Securities then outstanding
have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Preferred Guarantee Trustee in
respect of this

 

13

 

Preferred Securities Guarantee or to direct the exercise of any trust
or power conferred upon the Preferred Guarantee Trustee under this Preferred
Securities Guarantee.

 

(b)           If the Preferred
Guarantee Trustee fails to enforce this Preferred Securities Guarantee, any
Holder of Preferred Securities may institute a legal proceeding directly
against the Guarantor to enforce the Preferred Guarantee Trustee’s rights under
this Preferred Securities Guarantee, without first instituting a legal
proceeding against the Issuer, the Preferred Guarantee Trustee or any other
Person. The Guarantor waives any right or remedy to require that any action be
brought first against the Issuer or any other person or entity before
proceeding directly against the Guarantor. Notwithstanding the foregoing, if
the Guarantor has failed to make a Guarantee Payment, a Holder of Preferred
Securities may directly institute a proceeding against the Guarantor for
enforcement of this Preferred Securities Guarantee for such payment.

 

Section 5.5            Guarantee of Payment. This
Preferred Securities Guarantee creates a guarantee of payment and not of
collection.

 

Section 5.6            Subrogation. The Guarantor shall
be subrogated to all (if any) rights of the Holders of Preferred Securities
against the Issuer in respect of any amounts paid to such Holders by the
Guarantor under this Preferred Securities Guarantee; provided, however,
that the Guarantor shall not (except to the extent required by mandatory
provisions of law) be entitled to enforce or exercise any right that it may acquire
by way of subrogation or any indemnity, reimbursement or other agreement, in
all cases as a result of payment under this Preferred Securities Guarantee, if,
at the time of any such payment, any amounts are due and unpaid under this
Preferred Securities Guarantee. If any amount shall be paid to the Guarantor in
violation of the preceding sentence, the Guarantor agrees to hold such amount
in trust for the Holders and to pay over such amount to the Holders.

 

Section 5.7            Independent Obligations. The
Guarantor acknowledges that its obligations hereunder are independent of the
obligations of the Issuer with respect to the Preferred Securities, and that
the Guarantor shall be liable as principal and as debtor hereunder to make
Guarantee Payments pursuant to the terms of this Preferred Securities Guarantee
notwithstanding the occurrence of any event referred to in subsections (a) through
(g), inclusive, of Section 5.3 hereof.

 

ARTICLE VI

 

LIMITATION OF TRANSACTIONS; SUBORDINATION

 

Section 6.1            Limitation of Transactions. So
long as any Preferred Securities remain outstanding, if (i) the Guarantor
has exercised its option to defer interest payments on the Debt Securities by
extending the interest payment period and such extension period, or any
extension thereof, shall be continuing, or (ii) there shall have occurred
and be continuing an Event of Default under the Declaration or any event that,
with the giving of notice or lapse of time or both, would constitute an Event
of Default under the Declaration, then the Guarantor shall not (a) declare
or pay any dividend on, make any distributions with respect to, or redeem,
purchase, acquire, or make any liquidation payment with respect to, any of its
capital stock or (b) make any

 

14

 

payment of interest, principal or premium, if any, on or repay,
repurchase or redeem any debt securities of the Guarantor that rank PARI PASSU
with or junior in interest to the Debt Securities or make any guarantee payment
with respect to any guarantee by the Guarantor of the debt securities of any
subsidiary of the Guarantor if such guarantee ranks PARI PASSU with or junior
in interest to the Debt Securities (other than (i) as a result of the
exchange, redemption or conversion of one class or series of the
capital stock of the Guarantor (or any capital stock of a subsidiary thereof)
for another class or series of the capital stock of the Guarantor or
any class or series of the indebtedness of the Guarantor for any class or
series of the capital stock of the Guarantor, (ii) the purchase of
fractional interests in shares of the capital stock of the Guarantor pursuant
to the conversion or exchange provisions of such capital stock or the security
being converted into or exchanged for such capital stock, (iii) dividends
or distributions in common stock of the Guarantor, (iv) any declaration of
a dividend in connection with the implementation of a stockholders’ rights
plan, or the issuance of rights, stock or other property under any such plan in
the future, or the redemption or repurchase of any such rights pursuant
thereto, (v) payments under this Preferred Securities Guarantee or under
any similar guarantee by the Guarantor with respect to any trust common or
trust preferred securities of its subsidiaries and (vi) repurchases,
redemptions or other acquisitions of shares of the capital stock of the
Guarantor in connection with (1) any employment contract, benefit plan or
other similar arrangement with or for the benefit of one or more employees,
officers, directors or consultants, (2) a dividend reinvestment or
shareholder stock purchase plan or (3) the issuance of capital stock of
the Guarantor (or securities convertible or exercisable for such capital stock)
as consideration in an acquisition transaction entered into prior to such
extension period).

 

Section 6.2            Subordination. This Preferred
Securities Guarantee will constitute an unsecured obligation of the Guarantor
and will rank (i) subordinate and junior in right of payment to all other
liabilities of the Guarantor (except any liabilities that may be PARI
PASSU or junior expressly by their terms), (ii) PARI PASSU with the most
senior preferred or preference stock now or hereafter issued by the Guarantor
and with any guaranty now or hereafter entered into by the Guarantor in respect
of any preferred or preference stock of any Affiliate of the Guarantor and (iii) senior
to the Guarantor’s common stock.

 

ARTICLE VII

 

TERMINATION

 

Section 7.1            Termination. This Preferred
Securities Guarantee shall terminate as to each Holder upon, and be of no force
and effect from the earlier of (i) full payment of the Redemption Price
and accumulated and unpaid Distributions with respect to all Preferred
Securities, (ii) the distribution of the Debt Securities to the Holders of
the Preferred Securities or (iii) full payment of the amounts payable in
accordance with the Declaration upon liquidation of the Issuer. This Preferred
Securities Guarantee shall terminate completely upon full payment of the
amounts payable in accordance with the Declaration. Notwithstanding the
foregoing, this Preferred Securities Guarantee will continue to be effective or
will be reinstated, as the case may be, if at any time any Holder must
restore payment of any sums paid under the Preferred Securities or under this
Preferred Securities Guarantee.

 

15

 

ARTICLE VIII

 

INDEMNIFICATION

 

Section 8.1            Exculpation.

 

(a)           No Indemnified Person
shall be liable, responsible or accountable in damages or otherwise to the
Guarantor or any Covered Person for any loss, damage, liability, expense or
claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith in accordance with this Preferred Securities
Guarantee and in a manner that such Indemnified Person reasonably believed to
be within the scope of the authority conferred on such Indemnified Person by
this Preferred Securities Guarantee or by law, except that an Indemnified
Person shall be liable for any such loss, damage, liability, expense or claim
incurred by reason of such Indemnified Person’s negligence or willful
misconduct with respect to such acts or omissions.

 

(b)           An Indemnified Person
shall be fully protected in relying in good faith upon the records of the
Guarantor and upon such information, opinions, reports or statements presented
to the Guarantor by any Person as to matters the Indemnified Person reasonably
believes are within such other Person’s professional or expert competence and
who has been selected with reasonable care by or on behalf of the Guarantor,
including information, opinions, reports or statements as to the value and
amount of the assets, liabilities, profits, losses or any other facts pertinent
to the existence and amount of assets from which Distributions to Holders of
Preferred Securities might properly be paid.

 

Section 8.2            Indemnification. The Guarantor
agrees to indemnify each Indemnified Person for, and to hold each Indemnified
Person harmless against, any and all loss, liability or expense, including
taxes (other than taxes based upon the income of the Preferred Guarantee
Trustee), incurred without negligence or bad faith on its part, arising out of
or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees
and expenses) of defending itself against, or investigating, any claim or
liability in connection with the exercise or performance of any of its powers
or duties hereunder. The provisions of this Section 8.2 shall survive the
termination of this Preferred Securities Guarantee or the resignation or
removal of the Preferred Guarantee Trustee.

 

When the Preferred Guarantee Trustee incurs expenses or renders
services in connection with an Event of Default specified in Section 7.01(e) or
Section 7.01(f) of the Indenture, the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for
services are intended to constitute expenses of administration under any
applicable federal or state bankruptcy, insolvency or other similar law.

 

16

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1            Successors and Assigns. All
guarantees and agreements contained in this Preferred Securities Guarantee
shall bind the successors, assigns, receivers, trustees and representatives of
the Guarantor and shall inure to the benefit of the Holders of the Preferred Securities
then outstanding. Except in connection with any merger or consolidation of the
Guarantor with or into another entity permitted by Section 10.01 of the
Indenture or any sale, transfer or lease of the Guarantor’s assets to another
entity permitted by Section 10.01 of the Indenture, the Guarantor may not
assign its rights or delegate its obligations under this Preferred Securities
Guarantee without the prior approval of the holders of at least a Majority in
Liquidation Amount of the Preferred Securities then outstanding.

 

Section 9.2            Amendments. Except with respect
to any changes that do not adversely affect the rights of Holders (in which
case no consent of Holders will be required), this Preferred Securities
Guarantee may only be amended with the prior approval of the Holders of at
least a Majority in Liquidation Amount (including the stated amount that would
be paid on redemption, liquidation or otherwise, plus accumulated and unpaid
Distributions to the date upon which the voting percentages are determined) of
the Preferred Securities then outstanding. The provisions of the Declaration
with respect to meetings of Holders apply to the giving of such approval.

 

Section 9.3            Notices. All notices provided
for in this Preferred Securities Guarantee shall be in writing, duly signed by
the party giving such notice, and shall be delivered, telecopied or mailed by
first class mail, as follows:

 

(a)           If given to the
Preferred Guarantee Trustee, at the Preferred Guarantee Trustee’s mailing
address set forth below (or such other address as the Preferred Guarantee
Trustee may give notice of to the Holders of the Preferred Securities):

 

U.S. Bank National Association

300 Delaware Avenue

Wilmington, DE 19801

Attention:  Corporate Trust
Administration

 

(b)           If given to the
Guarantor, at the Guarantor’s mailing address set forth below (or such other
address as the Guarantor may give notice of to the Holders of the
Preferred Securities):

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attention: General Counsel

  	
   

  

 

(c)           If given to any Holder
of Preferred Securities, at the address set forth on the books and records of
the Issuer.

 

17

 

With respect to the Preferred Guarantee Trustee and the Guarantor, all
notices shall be deemed to have been given when received. With respect to any
Holder of Preferred Securities, all notices shall be deemed to have been given
when mailed by first class mail, postage prepaid.

 

Section 9.4            Benefit. This Preferred
Securities Guarantee is solely for the benefit of the Holders of the Preferred
Securities and, subject to Section 3.1(a), is not separately transferable
from the Preferred Securities.

 

Section 9.5            Governing Law. THIS PREFERRED
SECURITIES GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN
THE STATE OF NEW YORK INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW.

 

 

(signature page follows)

 

18

 

THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and year
first above written.

 

	
   

  	
   

  	
   

  
	
   

  	
  As Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
  as Preferred Guarantee Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

19Exhibit 10.3

 

EXECUTIVE
OFFICER MASTER FORM

 

ULTRATECH,  INC.

 

RESTRICTED STOCK UNIT ISSUANCE AGREEMENT

 

RECITALS

 

A.            The
Board has adopted the Plan for the purpose of retaining the services of
selected Employees and consultants and other independent advisors who provide
services to the Corporation (or any Parent or Subsidiary).

 

B.            Participant
is to render valuable services to the Corporation (or a Parent or Subsidiary),
and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation’s issuance of shares
of Common Stock to the Participant under the Stock Issuance Program.

 

C.            All
capitalized terms in this Agreement shall have the meaning assigned to them in
the attached Appendix A.

 

NOW, THEREFORE,
it is hereby agreed as follows:

 

1.             Grant of
Restricted Stock Units. The Corporation hereby awards to the
Participant, as of the Award Date, Restricted Stock Units under the Plan. Each
Restricted Stock Unit which vests during the Participant’s period of Service
shall entitle the Participant to receive one share of Common Stock on the specified
issuance date. The number of shares of Common Stock subject to the awarded
Restricted Stock Units, the applicable vesting schedule for those shares,
the date on which those vested shares shall become issuable to Participant and
the remaining terms and conditions governing the award (the “Award”) shall be
as set forth in this Agreement.

 

AWARD
SUMMARY

 

Award Date:                                                         ,
200    

 

Number of Shares

Subject to Award:                                       
shares of Common Stock (the “Shares”)

 

Vesting Schedule:                The
Shares shall vest in a series of
                    
(    ) successive equal
                     installments
upon the Participant’s completion of each
             
of Service over the
                  
(     )-year period measured from
                       .
However, the Shares may be subject to accelerated vesting in whole or in part in
accordance with the provisions of Paragraphs 4 and 6 of this Agreement.

 

 

Issuance Schedule               The Shares
in which the Participant vests in accordance with the foregoing Vesting Schedule will
become issuable on the date (the “Issue Date”) upon which occurs the earliest of the following dates or
events: (i)                  ,
20   , (ii) the date of the Participant’s Separation from
Service or (iii) the closing date of a Change in Control. The actual
issuance of the Shares shall be subject to the Corporation’s collection of all
applicable Withholding Taxes and shall be effected on the applicable Issue Date
or as soon as administratively practicable thereafter, but in no event later
than the close of the calendar year in which such Issue Date occurs or (if
later) the fifteenth (15th) day of the third calendar month following such
Issue Date. The procedures pursuant to which the applicable Withholding Taxes
are to be collected are set forth in Paragraph 8 of this Agreement.

 

2.             Limited
Transferability. Prior to actual receipt of the Shares which
vest and become issuable hereunder, the Participant may not transfer any
interest in the Award or the underlying Shares. Any Shares which vest hereunder
but which otherwise remain unissued at the time of the Participant’s death may be
transferred pursuant to the provisions of the Participant’s will or the laws of
inheritance or to the Participant’s designated beneficiary or beneficiaries of
this Award. The Participant may also direct the Corporation to issue the
stock certificates for any Shares which in fact vest and become issuable under
the Award during his or her lifetime to one or more designated family members
or a trust established for the Participant and/or his or her family members.
The Participant may make such a beneficiary designation or certificate
directive at any time by filing the appropriate form with the Plan
Administrator or its designee.

 

3.             Cessation
of Service. Except as otherwise provided in Paragraph 4 below,
should the Participant cease Service for any reason prior to vesting in one or
more Shares subject to this Award, then the Award will be immediately cancelled
with respect to those unvested Shares, and the number of Restricted Stock Units
will be reduced accordingly. The Participant shall thereupon cease to have any
right or entitlement to receive any Shares under those cancelled units. Should
the Participant’s Service terminate by reason of a Termination for Cause, then
this Award will be immediately cancelled with respect to all the Restricted
Stock Units subject to such Award, whether vested or unvested at the time, and
the Participant shall thereupon cease to have any right or entitlement to
receive any Shares under this Award and the cancelled Restricted Stock Units.

 

4.             Accelerated
Vesting. The following special vesting acceleration provisions
shall be in effect for the Award and shall be in addition to the vesting
acceleration provisions of Paragraph 6 of this Agreement:

 

(a)           Should the Participant
terminate Service by reason of Retirement(1) or should the Participant’s
Service terminate at or after attainment of age sixty-five (65) by

 

(1) Not applicable to grants made to the Chief Executive Officer.

 

2

 

reason
of death, Disability or Involuntary Termination (other than a Termination for Cause),
then all the Shares at the time subject to this Award shall immediately vest.

 

(b)           Should the Participant’s
Service terminate prior to attainment of age sixty-five (65) by reason of his
or her death, Disability or Involuntary Termination (other than a Termination
for Cause), then the Participant shall immediately vest in the additional
number of Shares (not to exceed one hundred percent (100%) of the unvested
Shares at that time) equal to the greater of (i) twenty-five
percent of the total Shares subject to this Award or (ii) the additional
number of Shares (if any) in which the Participant would have been vested at
the time of such termination had the Shares subject to this Award vested in a series of
             
(        ) successive equal                  installments over the duration of the Vesting
Schedule.

 

(c)           The Shares which vest
on an accelerated basis pursuant to this Paragraph 4, together with any other
Shares in which the Participant is at the time vested, shall be issued on the
date of the Participant’s Separation from Service or as soon as
administratively practicable thereafter, subject to the Corporation’s
collection of the applicable Withholding Taxes, but in no event later than the
close of the calendar year in which such Separation from Service occurs or (if
later) the fifteenth (15th) day of the third calendar month following the date
of such Separation from Service.

 

5.             Stockholder
Rights and Dividend Equivalents

 

(a)           The holder of this
Award shall not have any stockholder rights, including voting or dividend
rights, with respect to the Shares subject to the Award until the Participant
becomes the record holder of those Shares following their actual issuance upon
the Corporation’s collection of the applicable Withholding Taxes.

 

(b)           Notwithstanding the
foregoing, should any dividend or other distribution, whether regular or
extraordinary and whether payable in cash, securities or other property, be
declared and paid on the outstanding Common Stock while one or more Shares
remain subject to this Award (i.e., those Shares are not otherwise issued and
outstanding for purposes of entitlement to the dividend or distribution), then
a special book account shall be established for the Participant and credited
with a phantom  dividend equal to the
actual dividend or distribution which would have been paid on the Shares at the
time subject to this Award had those Shares been issued and outstanding and
entitled to that dividend or distribution. The phantom dividend equivalents so
credited shall vest at the same time as the Shares to which they relate and
shall be distributed to the Participant (in the same form the actual
dividend or distribution was paid to the holders of the Common Stock entitled
to that dividend or distribution) concurrently with the issuance of those Shares
on the applicable Issue Date. However, each such distribution shall be subject
to the Corporation’s collection of the Withholding Taxes applicable to that
distribution.

 

6.             Change of
Control.

 

(a)           Any Restricted Stock
Units subject to this Award at the time of a Change in Control will vest
immediately prior to the closing of that Change in Control. The

 

3

 

Shares
subject to those vested units, together with any other Shares in which the
Participant is at that time vested, will be issued on the Issue Date triggered
by the Change in Control (or otherwise converted into the right to receive the
same consideration per share of Common Stock payable to the other stockholders
of the Corporation in consummation of that Change in Control and distributed at
the same time as such stockholder payments), subject to the Corporation’s
collection of the applicable Withholding Taxes pursuant to the provisions of
Paragraph 8.

 

(b)           This Agreement shall
not in any way affect the right of the Corporation to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of
its business or assets.

 

7.             Adjustment
in Shares. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of
shares, exchange of shares or other change affecting the outstanding Common
Stock as a class without the Corporation’s receipt of consideration,
appropriate adjustments shall be made to the total number and/or class of
securities issuable pursuant to this Award in order to reflect such change and
thereby preclude a dilution or enlargement of benefits hereunder.

 

8.             Collection
of Withholding Taxes.

 

(a)           The Corporation shall
collect the employee portion of the FICA taxes (Social Security and Medicare) with
respect to the Shares at the time those Shares vest hereunder. The FICA taxes
shall be based on the Fair Market Value of the Shares on their vesting date. The
Corporation shall also collect the employee portion of the FICA taxes with
respect to any phantom dividends at the time those phantom dividends vest
hereunder. The FICA taxes shall be based on the cash amount and the fair market
value of any other property underlying the phantom dividends on the vesting
date. Unless the Participant delivers a separate check payable to the
Corporation in the amount of the FICA taxes required to be withheld from the
Participant, the Corporation shall withhold those taxes from the Participant’s
wages. However, if the Participant is at the time an executive officer of the
Corporation, then such withholding taxes must be collected from the Participant
through delivery of his or her separate check not later than the vesting date.

 

(b)           The Corporation shall
collect the federal, state and local income taxes required to be withheld with
respect to the distribution of the phantom dividend equivalents to the
Participant by withholding a portion of that distribution equal to the amount
of those taxes, with the cash portion of the distribution to be the first
portion so withheld. Until such time as the Corporation provides the
Participant with notice to the contrary, the Corporation shall collect the federal,
state and local income taxes required to be withheld with respect to the issuance
of the vested Shares hereunder through an automatic Share withholding procedure
pursuant to which the Corporation will withhold, at the time of such issuance, a
portion of the  Shares with a Fair Market
Value (measured as of the issuance date) equal to the amount of those taxes  (the “Share Withholding Method”); provided, however, that the amount of any Shares so
withheld shall not exceed the amount necessary to satisfy the Corporation’s
required tax withholding obligations using the minimum statutory withholding
rates for federal and state tax purposes that are

 

4

 

applicable
to supplemental taxable income. Participant shall be notified in writing in the
event such Share Withholding Method is no longer available.

 

(c)           Should any Shares be
distributed at time the Share Withholding Method is not available, then the federal,
state and local income taxes required to be withheld with respect to those
Shares shall be collected from the Participant through either of the following
alternatives:

 

•              the
Participant’s delivery of his or her separate check payable to the Corporation
in the amount of such Withholding Taxes, or

 

•              the
use of the proceeds from a next-day sale of the Shares issued to the
Participant, provided and only if (i) such a sale is permissible under the
Corporation’s trading policies governing the sale of Common Stock, (ii) the
Participant makes an irrevocable commitment, on or before the Issue Date for
those Shares, to effect such sale of the Shares and (iii) the transaction
is not otherwise deemed to constitute a prohibited loan under Section 402
of the Sarbanes-Oxley Act of 2002.

 

(d)           Except as
otherwise provided in Paragraph 6 and Paragraph 8(b), the settlement of all
Restricted Stock Units which vest under the Award shall be made solely in
shares of Common Stock. In no event, however, shall any fractional shares be
issued. Accordingly, the total number of shares of Common Stock to be issued pursuant
to the Award shall, to the extent necessary, be rounded down to the next whole
share in order to avoid the issuance of a fractional share.

 

9.             Deferred Issue Date. Notwithstanding
any provision to the contrary in this Agreement, no Shares which become
issuable by reason of the Participant’s Separation from Service shall
actually  be issued to a Participant
prior to the earlier of (i) the
expiration of the six (6)-month period measured from the date of his or her
Separation from Service or (ii) the date of his or her death, if  the Participant is deemed at the time of such
Separation from Service to be a “key employee” within the meaning of that term
under Code Section 416(i) and such
delayed issuance is otherwise required in order to avoid a prohibited
distribution under Code Section 409A(a)(2). Upon the expiration of the
applicable Code Section 409A(a)(2) deferral period, all Shares
deferred pursuant to this Paragraph 9 shall be issued in a lump sum to the Participant.

 

10.           Benefit
Limit.  In the event the vesting and issuance of the Shares
subject to this Award would otherwise constitute a parachute payment under Code
Section 280G, then the vesting and issuance of those Shares shall be
subject to reduction to the extent necessary 
to assure that the number of Shares which vest and are issued under this
Award will be limited to the greater of (i)  the
number of Shares which can vest and be issued without triggering a parachute
payment under Code Section 280G or (ii)  the maximum number of
Shares which can vest and be issued under this Award so as to provide the
Participant with the greatest after-tax amount of such vested and issued Shares
after taking into account any excise tax the Participant may incur under
Code Section 4999 with respect to those Shares and any other benefits or
payments to which the Participant may be entitled in connection with any
change in control or ownership of the Corporation or the subsequent termination
of the Participant’s Service.

 

5

 

[10.         Benefit
Limit.  In the event the vesting and issuance of the Shares subject to
this Award would constitute a parachute payment under Code Section 280G,
the Participant shall become entitled to the tax gross-up payment provided
under Section 8.3 of his Employment Agreement, to the extent such
agreement in effect at that time. Otherwise, the vesting and issuance of those
Shares shall be subject to reduction to the extent necessary  to assure that the number of Shares which
vest and are issued under this Award will be limited to the greater of (i)  the number
of Shares which can vest and be issued without triggering a parachute payment
under Code Section 280G or (ii)  the maximum number of Shares
which can vest and be issued under this Award so as to provide the Participant
with the greatest after-tax amount of such vested and issued Shares after
taking into account any excise tax the Participant may incur under Code Section 4999
with respect to those Shares and any other benefits or payments to which the
Participant may be entitled in connection with any change in control or
ownership of the Corporation or the subsequent termination of the Participant’s
Service.]  ALTERNATIVE

 

11.           Compliance with Laws and Regulations.
The issuance of shares of Common Stock pursuant to the Award shall be subject
to compliance by the Corporation and Participant with all applicable
requirements of law relating thereto and with all applicable regulations of any
stock exchange (or the Nasdaq National Market, if applicable) on which the
Common Stock may be listed for trading at the time of such issuance.

 

12.           Notices. Any notice required to be
given or delivered to the Corporation under the terms of this Agreement shall
be in writing and addressed to the Corporation at its principal corporate
offices. Any notice required to be given or delivered to Participant shall be
in writing and addressed to Participant at the address indicated below
Participant’s signature line on this Agreement. All notices shall be deemed
effective upon personal delivery or upon deposit in the U.S. mail, postage
prepaid and properly addressed to the party to be notified.

 

13.           Successors and Assigns. Except to
the extent otherwise provided in this Agreement, the provisions of this
Agreement shall inure to the benefit of, and be binding upon, the Corporation
and its successors and assigns and Participant, Participant’s assigns, the
legal representatives, heirs and legatees of Participant’s estate and any
beneficiaries of the Award designated by Participant.

 

14.           Construction. This Agreement and
the Award evidenced hereby are made and granted pursuant to the Plan and are in
all respects limited by and subject to the terms of the Plan. All decisions of
the Plan Administrator with respect to any question or issue arising under the
Plan or this Agreement shall be conclusive and binding on all persons having an
interest in the Award.

 

15.           Governing Law. The interpretation,
performance and enforcement of this Agreement shall be governed by the laws of
the State of California without resort to that State’s conflict-of-laws rules.

 

6

 

16.           Employment at Will. Nothing in this
Agreement or in the Plan shall confer upon Participant any right to continue in
Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation (or any Parent or Subsidiary
employing or retaining Participant) or of Participant, which rights are hereby
expressly reserved by each, to terminate Participant’s Service at any time for
any reason, with or without cause.

 

IN WITNESS WHEREOF, the
parties have executed this Agreement on the day and year first indicated above.

 

	
   

  	
  ULTRATECH, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

7

 

APPENDIX A

DEFINITIONS

 

The following definitions
shall be in effect under the Agreement:

 

A.            Agreement shall mean this
Restricted Stock Unit Issuance Agreement.

 

B.            Award shall mean the award of Restricted
Stock Units made to the Participant pursuant to the terms of this Agreement.

 

C.            Award Date shall mean the date the Restricted
Stock Units are awarded to Participant pursuant to the Agreement and shall be
the date indicated in Paragraph 1 of the Agreement.

 

D.            Board shall mean the Corporation’s
Board of Directors.

 

E.             Change in Control shall mean a
change in ownership or control of the Corporation effected through any of the
following transactions:

 

(i)            a merger
or consolidation in which the Corporation is not the surviving entity and in
which securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities are transferred to
person or persons different from the persons holding those securities
immediately prior to such merger or consolidation,

 

(ii)           the sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation in complete liquidation or dissolution of the Corporation, or

 

(iii)          any
reverse merger in which the Corporation is the surviving entity but in which
securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities are transferred to
person or persons different from the persons holding those securities
immediately prior to such merger.

 

(iv)          the
acquisition, directly or indirectly by any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls,
is controlled by, or is under common control with, the Corporation), of
beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of
securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities pursuant to a tender
or exchange offer made directly to the Corporation’s stockholders, or

 

A-1

 

(v)           a change
in the composition of the Board over a period of twelve (12) consecutive months
or less such that a majority of the Board members ceases, by reason of one or
more contested elections for Board membership, to be comprised of individuals
who either (A) have been Board members continuously since the beginning of
such period or (B) have been elected or nominated for election as Board
members during such period by at least a majority of the Board members
described in clause (A) who were still in office at the time the Board
approved such election or nomination.

 

F.             Code shall mean the Internal
Revenue Code of 1986, as amended.

 

G.            Common Stock shall mean shares of
the Corporation’s common stock.

 

H.            Corporation shall mean Ultratech, Inc.,
a Delaware corporation, and any successor corporation to all or substantially
all of the assets or voting stock of Ultratech, Inc. which shall by
appropriate action adopt the Plan.

 

I.              Disability shall mean the
Participant’s inability, because of physical or mental illness or injury, to
perform his customary duties as an executive officer of the Corporation,
with or without reasonable accommodation, and the continuation of such disabled
condition for a period of one hundred eighty (180) continuous days as
determined by an approved medical doctor. For purposes hereof, an approved
medical doctor shall mean a doctor selected by the Corporation and the
Participant. If the Corporation and the Participant cannot agree on a medical
doctor, each shall select a medical doctor and the two doctors shall select a
third who shall be the approved medical doctor for this purpose.

 

J.             Employee shall mean an individual
who is in the employ of the Corporation (or any Parent or Subsidiary), subject
to the control and direction of the employer entity as to both the work to be
performed and the manner and method of performance.

 

K.            Employment
Agreement shall mean the written employment agreement between
the Corporation and the Participant in effect on the Award Date.

 

L.             Fair Market Value per share of
Common Stock on any relevant date shall be determined in accordance with the
following provisions:

 

(i)            If
the Common Stock is not at the time listed or admitted to trading on any Stock Exchange
but is traded on the Nasdaq National Market, the Fair Market Value shall be the
closing selling price per share on the date in question, as such price is
reported by the National Association of Securities Dealers on the Nasdaq
National Market or any successor system. If there is no 

 

A-2

 

reported closing selling
price for the Common Stock on the date in question, then the closing selling
price on the last preceding date for which such quotation exists shall be
determinative of Fair Market Value.

 

(ii)           If
the Common Stock is at the time listed or admitted to trading on any Stock Exchange,
then the Fair Market Value shall be the closing selling price per share on the
date in question on that Stock Exchange, as such price is officially quoted in
the composite tape of transactions on such exchange. If there is no reported
sale of Common Stock on such Stock Exchange on the date in question, then the
Fair Market Value shall be the closing selling price on the exchange on the
last preceding date for which such quotation exists.

 

M.           Involuntary
Termination  shall mean the termination of the Participant’s
Service which occurs by reason of:

 

(i)            such
individual’s involuntary dismissal or discharge by the Corporation (or any
Parent or Subsidiary) for reasons other than a Termination for Cause,  or

 

(ii)           such
individual’s voluntary resignation following any of the following events
without the Participant’s written consent: (A) any reduction in the
aggregate level of the Participant’s annual rate of base salary, except a
reduction that is part of a program applicable to all of the Corporation’s
officers to reduce expenses; (B) the failure by the Corporation or any Parent
or Subsidiary (or any successor to the Corporation) to comply with any material
terms of the Employment Agreement or any other material agreement between the
Participant and the Corporation or any Parent or Subsidiary (or any successor
to the Corporation); (C) any material reduction in the nature or scope of
the Participant’s duties, title, function, authority or responsibilities,
subject to any limitations specified in the Employment Agreement(2); or (D) a
requirement that the Participant relocate his principal office to a location
that is more than sixty (60) miles from the location of his principal office determined
as of the date specified in the Employment Agreement; provided, however,
that none of the events specified above shall constitute grounds for an
Involuntary Termination unless the Participant shall have notified the Corporation
in writing describing the events which constitute grounds for such Involuntary
Termination and the Corporation shall have failed to cure such event within
thirty (30) days after the Corporation’s receipt of such written notice.

 

N.            1934 Act shall mean the Securities
Exchange Act of 1934, as amended from time to time.

 

(2) For grants made to the Chief Executive Officer, the language
will be as follows:  “(C) any
material reduction in the nature or scope of the Participant’s duties, title,
function, authority or responsibilities (including, for example, the
Participant’s directly reporting to anyone other than the Board.”

 

A-3

 

O.            Participant shall mean the person
to whom the Award is made pursuant to the Agreement.

 

P.             Parent shall mean any corporation
(other than the Corporation) in an unbroken chain of corporations ending with
the Corporation, provided each corporation in the unbroken chain (other than
the Corporation) owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

 

Q.            Plan shall mean the Corporation’s 1993
Stock Option/Stock Issuance Plan, as amended and restated.

 

R.            Plan Administrator shall mean
either the Board or a committee of the Board acting in its capacity as
administrator of the Plan.

 

S.             Restricted
Stock Unit shall mean each unit subject to this Award which
shall entitle the Participant to receive one share of Common Stock under the
Plan at a designated time following the vesting of that unit.

 

T.            Retirement
shall mean the Participant’s voluntary termination from Service on or after his
or her attainment of age sixty five (65) other than in connection with a
Termination for Cause event

 

U.            Separation
from Service shall mean the Participant’s termination of Service
under circumstances which are deemed to constitute a separation from service
within the meaning of Code Section 409A and the applicable Treasury
Regulations thereunder.

 

V.            Service shall mean the Participant’s
performance of services for the Corporation (or any Parent or Subsidiary) in
the capacity of an Employee, a non-employee member of the board of directors or
a consultant or independent advisor. For purposes of this Agreement,
Participant shall be deemed to cease Service immediately upon the occurrence of
the either of the following events: (i) Participant no longer performs
services in any of the foregoing capacities for the Corporation (or any Parent
or Subsidiary) or (ii) the entity for which Participant performs such
services ceases to remain a Parent or Subsidiary of the Corporation, even
though Participant may subsequently continue to perform services for
that entity. Service shall not be deemed to cease during a period of military
leave, sick leave or other personal leave approved by the Corporation; provided, however, that except to the extent otherwise
required by law or expressly authorized by the Plan Administrator or the
Corporation’s written leave of absence policy, no Service credit shall be given
for vesting purposes for any period the Participant is on a leave of absence.

 

W.           Stock Exchange shall mean the
American Stock Exchange or the New York Stock Exchange.

 

A-4

 

X.            Subsidiary shall mean any corporation
(other than the Corporation) in an unbroken chain of corporations beginning
with the Corporation, provided each corporation (other than the last
corporation) in the unbroken chain owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

 

Y.            Termination for Cause shall mean
the termination of the Participant’s Service by the Corporation (or any Parent
or Subsidiary)  for one or more of the
following reasons:

 

(i)            the
Participant’s repeated failure to perform any essential duty of his or her
position other than due to Disability or such illness or injury as would result
in Disability if it continued for the one hundred eighty (180)-day period
specified in the Disability definition above;

 

(ii)           the
Participant’s commission of any act that constitutes gross misconduct and is
injurious to the Corporation or any Parent or Subsidiary or any successor to
the Corporation;

 

(iii)          the
Participant’s conviction of or pleading guilty or nolo
contendere to any felony involving theft, embezzlement, dishonesty
or moral turpitude;

 

(iv)          the
Participant’s commission of any act of fraud against, or the misappropriation
of property belonging to, the Corporation or any Parent or Subsidiary or any
successor to the Corporation;

 

(v)           the
Participant’s commission of any act of dishonesty in connection with his or her
responsibilities as an employee that is intended to result in his or her
personal enrichment or the personal enrichment of his or her family or others; or

 

(vi)          the
Participant’s material breach of the Employment Agreement he or she may have
at the time with the Corporation or any other agreement between the Participant
and the Corporation or any Parent or Subsidiary or successor to the
Corporation.

 

Z.            Withholding Taxes shall mean (i) the
employee portion of the federal, state and local employment taxes required to
be withheld by the Corporation in connection with the vesting of the shares of
Common Stock under the Award and any phantom dividend equivalents relating to
those shares and (ii) the federal, state and local income taxes required
to be withheld by the Corporation in connection with the issuance of those
vested shares and the distribution of any phantom dividend equivalents relating
to such shares.

 

A-5

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