BROOKS AUTOMATION, INC. RESTRICTED STOCK AGREEMENT
Exhibit 10.04
XXXXXX AUTOMATION, INC.
AGREEMENT made effective as of April 25, 2008, between Xxxxxx Automation, Inc., a Delaware
corporation (the “Company”), and Xxxxxx X. Xxxxxxxx (the “Employee”).
WITNESSETH:
WHEREAS, as an inducement for the Employee to assist the Company to achieve long-range
performance goals and to enable the Employee to participate in the long-term growth of the Company,
the Company desires to grant to the Employee 250,000 Shares (the “Shares”) of the Company’s common
stock, pursuant to the Company’s Amended and Restated 2000 Equity Incentive Plan (the “Plan”) and
subject to the terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:
ARTICLE 1 — ACQUISITION OF SHARES
1.1 Award of Shares. The Company has granted the Shares to the Employee, and the
Employee hereby accepts the Shares, subject to the terms and conditions of the Plan and this
Agreement. In the event of an inconsistency between this Agreement and the Plan, which is
incorporated herein by reference, the Plan will control. All capitalized terms not defined in this
Agreement have the meaning specified in the Plan.
1.2 Record ownership; custody of certificates, etc.
(a) In accordance with the Plan and Section 158 of the Delaware General Corporation Law, the
Shares shall be evidenced in the books of the Company as owned by the Employee. The Shares shall be
held in uncertificated form except as the Company otherwise determines. If at any time the Shares
are represented by certificates or other evidence of ownership, the Company may retain custody of
such certificates or other evidence of ownership until such time as the Shares are either forfeited
to the Company or cease to be subject to the risk of forfeiture and transfer restrictions described
herein and in the Plan. Notwithstanding the foregoing, except as set forth herein or in the Plan
the Employee shall have the rights of an owner of the Shares, including the right to vote the
Shares and the right to dividends or other distributions.
(b) Upon the lapsing of the restrictions described herein with respect to the Shares, the
Company shall take such steps as it determines to be necessary or appropriate to transfer
certificates or other evidence of ownership to the Employee, including, if so determined by the
Company, to a brokerage account held by or for the benefit of the Employee.
1.3 Employee Representations. The Employee represents, warrants and covenants as
follows:
(a) The Employee has received and reviewed the Plan and the Prospectus related to the Plan,
including the documents incorporated therein by reference.
(b) The Employee understands that (i) the Federal income tax consequences to the Employee of
the transfer of the Shares to the Employee will vary depending upon whether the Employee makes an
election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), (ii)
the Company is not providing the Employee with any advice as to whether to make such election,
(iii) the Employee has been advised to seek the counsel of his or her own tax advisor as to
whether, and if so where and how to make such election, (iv) such election, if made, must be filed
with the Internal Revenue Service within 30 days of the date of this Agreement, and (v) the
Employee must notify the Company upon making such election.
(c) The Employee understands, agrees and acknowledges that the Shares are subject to
restrictions on transfer and may be forfeited if the conditions of this Agreement are not
satisfied. The Employee also understands, agrees and acknowledges that if the Shares are ever
certificated the Company may, at its election and in its sole discretion, require that the
certificates have affixed thereto a legend in substantially the following form:
“The shares of stock represented by this certificate are subject to
restrictions on transfer and a risk of forfeiture set forth in a certain
Restricted Stock Agreement between the corporation and the registered owner
of this certificate (or his or her predecessor in interest). Such Agreement
is available for inspection without charge at the principal executive offices
of the corporation.”
ARTICLE 2 — VESTING AND FORFEITURE
2.1 Vesting and Forfeiture. For purposes of this Agreement, employment with the
Company shall include employment with a consolidated subsidiary of the Company. The Shares shall
vest as follows unless earlier forfeited in accordance with this Section 2.1:
(a) Unless earlier vested or forfeited, the Shares will vest, if at all, based upon the
satisfaction of three performance criteria: (i) total shareholder return — i.e. fiscal year over
fiscal year change in average trailing fifteen trading day share price plus accumulated dividends,
(ii) pre-tax operating income from continuing operations (excluding special income/charges such as
patent settlements), and (iii) pre-tax return on shareholder equity — i.e. pre-tax income divided
by stockholder equity expressed as a percentage (collectively, the “Performance Factors”) and a
continuing employment requirement. Vesting of the Shares will be measured as of September 30, 2008,
and again as of September 30, 2009, (each, a “Measurement Date”). The aggregate net percentage
increase in each of the three Performance Factors for the Company’s fiscal year that includes the
Measurement Date (taking into account for this purpose any percentage decrease that may occur in
any of the Performance Factors) shall be multiplied by the total number of Shares that are not
vested, determined immediately prior to the relevant Measurement Date, to determine the number of
Shares that vest as of the Measurement Date. The Employee must also be
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employed by the Company on the Measurement Date to vest in any earned portion of the Shares. For
example, if for the Company’s fiscal year ending September 30, 2008, the Company’s pre-tax
operating income increased by 9%, its return on shareholder equity increased by 10%, and total
shareholder return increased by 51%, the Employee would vest in 70% of the Shares (i.e., in 175,000
shares). Notwithstanding the foregoing, the Human Resources and Compensation Committee may exercise
its discretion to vest all or a part of any otherwise unvested portion of the Shares at any time if
such acceleration is in the best interests of the Company. Any Shares remaining unvested as of
October 1, 2009, shall be immediately and automatically forfeited to the Company.
(b) If there is a Qualifying Termination of the Employee’s employment with the Company
and its subsidiaries that occurs within the one-year period following a Change in Control, any
Shares that were unvested but outstanding immediately prior to the Qualifying Termination shall be
treated as having vested immediately prior to the Qualifying Termination.
For purposes of this Section 2.1:
(A) “Change in Control” means the occurrence of any of the events described in
subsections (i), (ii), (iii), or (iv) below:
(i) Any Person acquires beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of thirty-five (35%) percent or more of either
(x) the then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (y) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, that for purposes
of this subsection (A)(i) the following acquisitions shall not constitute a Change
in Control: (I) any acquisition directly from the Company, (II) any acquisition by
the Company, (III) any acquisition by an employee benefit plan (or related trust)
sponsored or maintained by the Employer, or (IV) any Business Combination (but
except as provided in subsection (A)(iii) below a Business Combination may
nevertheless constitute a Change in Control under subsection (A)(iii)); and provided
further, that an acquisition by a Person of thirty-five percent (35%) percent or
more but less than fifty (50%) percent of the Outstanding Company Common Stock or of
the combined voting power of the Outstanding Company Voting Securities shall not
constitute a Change in Control under this subsection (A)(i) if within fifteen (15)
days of the Board’s being advised that such ownership level has been reached, a
majority of the “Incumbent Directors” (as hereinafter defined) then in office adopt
a resolution approving the acquisition of that level of securities ownership by such
Person; or
(ii) Individuals who, as of the date hereof, constituted the Board (the
“Incumbent Directors”) cease for any reason to constitute at least a majority of the
Board; provided, that any individual who becomes a member of the Board subsequent to
the date hereof, and whose election or nomination for election was approved by a
vote of at least two-thirds of the Incumbent Directors shall be treated as an
Incumbent Director unless he or she assumed office as a result of an
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actual or threatened election contest with respect to the election or removal of directors;
or
(iii) There is consummated a reorganization, merger or consolidation involving the
Company, or a sale or other disposition of all or substantially all of the assets of the
Company (a “Business Combination”), in each case unless, following such Business
Combination, (x) the Persons who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and of the combined voting power of the Outstanding
Company Voting Securities immediately prior to the Business Combination beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the entity
resulting from such Business Combination in substantially the same proportions as their
ownership immediately prior to such Business Combination of the Outstanding Company Common
Stock and of the combined voting power of the Outstanding Company Voting Securities, as the
case may be, (y) unless in connection with such Business Combination a majority of the
Incumbent Directors then in office determine that this clause (A)(iii)(y) does not apply to
such Business Combination, no Person (excluding any entity resulting from such Business
Combination or any employee benefit plan (or related trust) of the Employer or of such
corporation resulting from such Business Combination) beneficially owns, directly or
indirectly, thirty-five (35%) percent or more of, respectively, the then outstanding shares
of common stock of the corporation resulting from such Business Combination or the combined
voting power of the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors, except to the extent that such ownership existed
prior to the Business Combination and (z) at least a majority of the members of the Board
resulting from such Business Combination were Incumbent Directors at the time of the
execution of the initial agreement, or of the action of the Board, providing for such
Business Combination; or
(iv) The stockholders of the Company approve a complete liquidation or dissolution of
the Company;
provided, that if any payment or benefit payable hereunder upon or following a Change in Control
(as defined herein) would be required to comply with the limitations of Section 409A(a)(2)(A)(v) of
the Code and the guidance thereunder in order to avoid an additional tax under Section 409A of the
Code, such payment or benefit shall be made only if such Change in Control constitutes a change in
ownership or control of the Company, or a change in ownership of the Company’s assets, described in
IRS Notice 2005-1, the final regulations under Section 409A of the Code, or any successor
guidance.
(B) “Qualifying Termination” means a termination by the Company or by a subsidiary of the
Company of the Employee’s employment with the Company and its subsidiaries, other than a
termination for Cause.
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(C) “Cause” means (i) the Employee’s willful failure to perform, or serious negligence
in the performance of, the Employee’s duties and responsibilities for the Company or any of
its subsidiaries that remains uncured, or continues, beyond the fifteenth (15th)
day following the date on which the Company gives the Employee notice specifying in
reasonable detail the nature of the failure or negligence; (ii) fraud, embezzlement or
other dishonesty with respect to the Company or any of its subsidiaries or customers; (iii)
conviction of, or a plea of guilty or nolo contendere with respect to, a felony or to any
crime (whether or not a felony) that involves moral turpitude; or (iv) breach of fiduciary
duty or violation of any covenant of confidentiality, assignment of rights to intellectual
property, non-competition or non-solicitation of customers or employees; provided, that if
at the time of termination of employment the Employee is party to an employment agreement
or similar agreement with the Company or any of its subsidiaries that includes a definition
of “Cause”, the definition contained in such employment agreement or similar agreement
shall apply for purposes of this Section 2.1 in lieu of the definition set forth above in
this clause (C).
(D) “Board” means the Board of Directors of the Company.
(E) “Employer” means the Company and its subsidiaries.
(F) “Person” means any individual, entity or other person, including a group within
the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act.
(G) “Exchange Act” means the Securities Exchange Act of 1934, as amended.
2.2 Restrictions on Transfer.
(a) Except as otherwise provided in subsection (b) below, for so long as any of the Shares are
subject to a risk of forfeiture as described above, the Employee shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”), any such Shares or any interest therein. Any attempted transfer in contravention of
the foregoing shall be null and void. The Company shall not be required to transfer record
ownership on its books of any Shares subject to the restrictions herein that have been sold,
assigned or otherwise transferred, hypothecated or disposed of in violation of this Agreement.
(b) Once the risk of forfeiture and the transfer restrictions described above lapse as to any
Shares, such Shares may be sold, transferred or otherwise disposed of subject only to the
restrictions of applicable law, including applicable securities law, and to any insider-trading or
similar restrictions that may be imposed by the Company.
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ARTICLE 3 — MISCELLANEOUS
3.1 Adjustments for Stock Splits, Stock Dividends, etc. If there is any stock split,
reverse stock split, stock dividend, stock distribution or other reclassification of the Common
Stock, any and all new, substituted or additional securities to which the Employee is entitled by
reason of his ownership of the Shares shall be immediately subject to the risk of forfeiture and
transfer restrictions described herein in the same manner and to the same extent, if any, as such
Shares.
3.2 Restrictions on Distributions. If at any time while the Shares are subject to the
risk of forfeiture and transfer restrictions described herein there is a dividend (other than a
stock dividend described in Section 3.1) or other distribution with respect to the Shares, whether
of cash, Common Stock, other securities or other property, the Company may require that the cash,
securities, or other property so dividended or distributed be subjected to restrictions (including,
without limitation, if the Company so determines, by holding any such amounts in escrow) similar to
those to which the Shares are then subject.
3.3 Withholding Taxes.
(a) Pursuant to applicable federal, state, local or foreign laws, the Company may be required
to collect income or other taxes on the transfer of the Shares to the Employee, the lapse of a
restriction placed on the Shares, or at other times. The Company may require, at such time as it
considers appropriate, that the Employee pay the Company the amount of any taxes that the Company
may determine is required to be withheld or collected, and the Employee shall comply with the
requirement or demand of the Company. The Company may withhold, collect or offset against any
amount owed by the Company to the Employee, the amount of any such taxes in any manner (including,
without limitation, by payment in whole or in part in shares of Common Stock, including the Shares,
valued at the Fair Market Value, by check, or by offsetting such amount against compensation
otherwise due to the Employee), if in its sole discretion it deems any such method to be an
appropriate method for withholding or collecting taxes.
(b) If the Employee elects, in accordance with Section 83(b) of the Code, to recognize
ordinary income in the year of acquisition of the Shares, the Company may require that the
Employee, at the time of such election, make an additional payment for withholding tax purposes
based on the difference, if any, between the purchase price for such Shares and the fair market
value of such Shares.
3.4 No Rights To Employment. Nothing contained in this Agreement shall be
construed as giving the Employee any right to be retained as an employee of the Company.
3.5 Waiver; Disposition of Stock. From time to time the Company may waive its rights
hereunder either generally or with respect to one or more specific transfers which have been
proposed, attempted or made. Each such waiver shall be effective only in the specific instance and
for the purpose for which it was given, and shall not constitute a continuing waiver.
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3.6 Successors and Assigns; Assignment. This Agreement shall be binding upon the
parties hereto and their heirs, representatives, successors and assigns. The Company may assign its
rights hereunder either generally or from time to time.
3.7 Notices. All notices to a party hereto shall be in writing and shall be deemed to
have been adequately given if delivered in person or mailed, postage pre-paid and registered or
certified mail or federal express or other recognized commercial courier service:
If to the Company:
Xxxxxx Automation, Inc.
00 Xxxxxxxxx Xxxxx
Xxxxxxxxxx, Xxxxxxxxxxxxx 00000
Attention: Chief Financial Officer
00 Xxxxxxxxx Xxxxx
Xxxxxxxxxx, Xxxxxxxxxxxxx 00000
Attention: Chief Financial Officer
If to Employee:
Xxxxxx X. Xxxxxxxx
XX Xxx 00000
Xxxxxxxxx Xxxxx, Xxxxxxxxxxxxx 00000
XX Xxx 00000
Xxxxxxxxx Xxxxx, Xxxxxxxxxxxxx 00000
or to such other address as any party may from time to time designate for itself by notice in
writing given to the other parties hereto.
3.8 Amendments. This Agreement may be amended or modified in whole or in part only by
an instrument in writing signed by the Company and the Employee.
3.9 Entire Agreement. This Agreement constitutes the entire agreement between the
parties, and all premises, representations, understandings, warranties and agreements with
reference to the subject matter hereof have been expressed herein or in the documents incorporated
herein by reference.
3.10 Applicable Law; Severability. This Agreement shall be governed by and construed
and enforced in accordance with Delaware law. Wherever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision hereof shall be prohibited by or invalid under any such law, that provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating or
nullifying the remainder of that provision or any other provisions of this Agreement.
3.11 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed in original but all of which together shall constitute one and the same
instrument.
3.12 Effect of Headings. Any table of contents, title of an article or section heading
herein contained is for convenience or reference only and shall not affect the meaning of
construction of any of the provisions hereof.
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IN WITNESS WHEREOF, the Employee has hereunto set his or her hand and the Company has
authorized this instrument to be signed by its officers thereunder duly authorized, effective as an
instrument under seal.
| XXXXXX AUTOMATION, INC. |
||||
| By: | /s/ Xxxxxx X. Xxxxx | |||
| Name: | Xxxxxx X. Xxxxx | |||
| Title: | Sr. Vice President, General Counsel & Secretary | |||
| EMPLOYEE |
||||
| /s/ Xxxxxx X. Xxxxxxxx | ||||
| Name: | Xxxxxx X. Xxxxxxxx | |||
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