SEC Contract Filing

Filing Date: 2017-04-27

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>gww-2017033117xex104.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<div><a name="seb9e658ed2594bc299c778dad596d6ac"></a></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Exhibit 10.4</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">W.W. GRAINGER, INC.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">2015 Incentive Plan</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Form of Performance Share Agreement</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;padding-left:6px;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">This Performance Share Agreement (this "Agreement"), dated as of , 20 (the &#8220;Grant Date&#8221;), is entered into between W.W. Grainger, Inc., an Illinois corporation (the "Company"), and you as the executive (the "Executive"), who is employed by the Company or a Subsidiary of the Company (the "Employer").</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;padding-left:6px;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In consideration of the Executive's agreement to enter into an Unfair Competition Agreement with the Company concurrently with this Agreement on the Grant Date (the "Unfair Competition Agreement"), the Company desires to grant the Executive an award of performance shares (the "Performance Shares" or "Award"), providing for the issuance of shares of the Company's common stock ("Shares") pursuant to the W.W. Grainger, Inc. 2015 Incentive Plan (as may be amended from time to time, the "Plan") based upon the Company's attainment of certain long-term performance goals and the Executive desires to enter into the Unfair Competition Agreement and accept such Award on the terms and conditions set forth in this Agreement, the Plan and the Unfair Competition Agreement. Capitalized terms used but not defined in this Agreement have the meanings specified in the Plan.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;padding-left:6px;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In consideration of the mutual provisions set forth in this Agreement and in the Unfair Competition Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">ARTICLE I</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Grants</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;padding-left:6px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">1.01 Grants. Subject to the terms and conditions of this Agreement, the Plan and the Unfair Competition Agreement (the terms of which are hereby incorporated herein by reference) and effective on the Grant Date, the Company hereby grants to the Executive the number of Performance Shares (the "Target Number") as specified in the , 20 award grant notice posted to the Executive's electronic investment account maintained with the brokerage firm/third party service provider engaged by the Company in connection with the operation of the Plan (the "Administrator"). The actual number of Performance Shares subject to this Agreement shall be determined based upon the Company's achievement of: (i) the net sales target for fiscal year 20 (the "Net Sales Target"); and (ii) the Company's average return on invested capital for fiscal years 20 , 20 and 20 (the "ROIC Target"), in each case, as further defined in Article II below. For purposes hereof, &#8220;Measuring Period&#8221; means the period encompassing the Company's fiscal years ended 20 , 20 and 20 . The Performance Share payout will range from 0% to 200%. Each Performance Share represents a contractual right to receive one (1) Share upon the Company's achievement of the Net Sales Target and the ROIC Target and the satisfaction of the terms and conditions of this Agreement.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">ARTICLE II</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font st