SEC Contract Filing

Filing Date: 2018-09-21

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>form8-k091918xex104.htm
<DESCRIPTION>MODIFIED TERMS AND CONDITIONS TO 2017 RESTRICTED PERFORMANCE STOCK RIGHTS
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<div><a name="s9AFE5E3958437252889BF3162AB8D73E"></a></div><div></div><div><br></div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.4</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:18pt;"><font style="font-family:inherit;font-size:18pt;font-weight:bold;">NORTHROP GRUMMAN CORPORATION</font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">MODIFIED TERMS AND CONDITIONS APPLICABLE TO</font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">2017 RESTRICTED PERFORMANCE STOCK RIGHTS <br>GRANTED UNDER THE 2011 LONG-TERM INCENTIVE STOCK PLAN</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These Terms and Conditions (&#8220;Terms&#8221;) apply to certain &#8220;Restricted Performance Stock Rights&#8221; (&#8220;RPSRs&#8221;) granted by Northrop Grumman Corporation (the &#8220;Company&#8221;) in 2017 under its 2011 Long-Term Incentive Stock Plan. If you were granted an RPSR award by the Company in 2017, the date of grant of your RPSR award and the target number of RPSRs applicable to your award are set forth in the letter from the Company announcing your RPSR award (your &#8220;Grant Letter&#8221;) and are also reflected in the electronic stock plan award recordkeeping system (&#8220;Stock Plan System&#8221;) maintained by the Company or its designee. These Terms apply only with respect to the 2017 RPSR award. If you were granted an RPSR award, you are referred to as the &#8220;Grantee&#8221; with respect to your award. Capitalized terms are generally defined in Section 12 below if not otherwise defined herein.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Each RPSR represents a right to receive one share of the Company&#8217;s Common Stock, or cash of equivalent value as provided herein subject to vesting as provided herein. The performance period applicable to your award is January&#160;1, 2017 to December 31, 2019 (the &#8220;Performance Period&#8221;). The target number of RPSRs subject to your award is subject to adjustment as provided herein. The RPSR award is subject to all of the terms and conditions set forth in these Terms, and is further subject to all of the terms and conditions of the Plan, as it may be amended from time to time, and any rules adopted by the Committee, as such rules are in effect from time to time. If you do not formally accept your RPSR award, including these Terms, in accordance with the instructions and time limit set forth in your Grant Letter, you will be deemed to have forfeited your RPSR award.</font></div><div><br></div><div><div style="line-height:100%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:100%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:9pt;">Bush (2017 Annual RPSR Modification)</font><font style="font-family:inherit;font-size:12pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;">1</font></div><div style="line-height:100%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:100%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div></div><hr style="page-break-after:always"><div><a name="sF8358B19C80778179EBDF3162AF8A410"></a></div><div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div></div><div><br></div><div style='display:inline-block; width:100%;'><div style='float:left; width:48%;'><table cellpadding="0" cellspacing="0" style="padding-bottom:13px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:29px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:0px;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">1.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Vesting; Payment of RPSRs</font><font style="font-family:inherit;font-size:10pt;">.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:16px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The RPSRs are subject to the vesting and payment provisions established by the Committee with respect to the Performance Period. RPSRs (and any Dividend Equivalents (as defined below)) that vest based on such provisions will be paid as provided below. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">1.1.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Performance-Based Vesting of RPSRs</font><font style="font-family:inherit;font-size:10pt;">. Sub