VOUGHT AIRCRAFT INDUSTRIES, INC. 2006 INCENTIVE AWARD PLAN RESTRICTED STOCK UNIT AWARD AGREEMENT GRANT NOTICE
Exhibit 10.4
GRANT NOTICE
Pursuant to this Restricted Stock Unit Agreement dated November 3, 2006 (together with
Appendix A hereto, the “Agreement”), Xxxxxx Aircraft Industries, Inc, a Delaware
corporation (the “Company”) hereby grants Xxxxx X. Xxxx (the “Participant”), the following award of
Restricted Stock Units (“RSUs”) pursuant and subject to the terms and conditions of this Agreement
and the Company’s 2006 Incentive Award Plan (the “Plan”), the terms and conditions of which are
hereby incorporated into this Agreement by reference. Except as otherwise expressly
provided herein, all capitalized terms used in this Agreement, but not defined, shall have the
meanings provided in the Plan. Subject to the terms and conditions of this Agreement, including
those provided in Appendix A, the principal features of this award are as follows:
Number
of RSUs: 200,000
Grant Date: November 2, 2006
Vesting of RSUs: Except as otherwise provided herein, the RSUs shall vest as to all of the
shares of Stock subject thereto as of the earlier to occur of (i) a Change in Control, or (ii) May
25, 2009, subject to the Participant’s continued employment with the Company through either such
occurrence, provided, that if the Participant’s employment is terminated prior to either such
occurrence by the Company without Cause or due to the Participant’s death or Disability, the RSUs
shall vest as to all of the shares of Stock subject thereto immediately prior to such termination
(any such date on which the RSUs vest, the “Vesting Date”). For purposes of this Agreement,
“Cause” means Cause as defined in a Participant’s employment agreement with the Company if
such an agreement exists and contains a definition of Cause, or, if no such agreement exists or
such agreement does not contain a definition of Cause, then Cause means (i) a Participant’s failure
substantially to perform his or her duties, other than any such failure resulting from the
Participant’s disability, after notice and reasonable opportunity for cure, all as determined by
the Committee; (ii) a Participant’s willful misconduct, gross negligence or a breach of fiduciary
duty that, in each case or in the aggregate, results in material harm to the Company; (iii) a
Participant’s having been the subject of any order, judicial or administrative, obtained or issued
by the Securities Exchange Commission, for any securities violation involving fraud, including any
such order consented to by the individual in which findings of facts or any legal conclusions
establishing liability are neither admitted nor denied; (iv) a Participant’s conviction, plea of no
contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or crime
involving moral turpitude; (v) a Participant’s unlawful use (including being under the influence)
or possession of illegal drugs on the Company’s premises or while performing his or her duties and
responsibilities; or (vi) a Participant’s act of fraud, dishonesty, embezzlement, or
misappropriation, in each case, against the Company or involving Company assets.
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Termination of RSUs: If the Participant’s employment with the Company is terminated prior to
the Vesting Date other than by the Company without Cause or due to the Participant’s death or
Disability, all RSUs that have not vested as of such termination shall be immediately forfeited by
the Participant as of such date of termination without consideration therefor.
The Participant’s signature below indicates the Participant’s agreement with and understanding
that this award is subject to all of the terms and conditions contained in the Plan and in this
Agreement (including Appendix A), and that, in the event that there are any inconsistencies
between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall control.
The Participant further acknowledges that the Participant has read and understands the Plan and
this Agreement, including Appendix A hereto, which contains the specific terms and conditions of
this grant of RSUs. The Participant hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Committee upon any questions arising under the Plan or this
Agreement.
| XXXXXX AIRCRAFT INDUSTRIES, INC. | PARTICIPANT | |||||
/s/
Xxxxx X. XxXxxxxxxx |
/s/ Xxxxx Xxxx | |||||
| Xxxxx X. Xxxx | ||||||
Name: |
Xxxxx X. XxXxxxxxxx | Address: | ||||
Title: |
Corporate Secretary | |||||
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APPENDIX A
TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS
1. Grant. The Company hereby grants to the Participant, as of the Grant Date, an
award of 200,000 RSUs, subject to all of the terms and conditions contained in this Agreement and the
Plan. All capitalized terms used but not defined herein shall have the meanings provided in the
Grant Notice and the Plan.
2. RSUs. As of the Vesting Date, subject to the Participant’s continued employment
with the Company through such date, each RSU shall vest and represent the right to receive payment,
in accordance with Section 4 below, in the form of one share of Stock, provided, that the
Committee, in its sole discretion, may instead elect to pay, in accordance with Section 4 below,
any or all RSUs in cash in an amount equal to the Fair Market Value as of the Vesting Date of a
corresponding number of shares of Stock. Unless and until an RSU vests, the Participant will have
no right to payment in respect of any such RSU. Prior to actual payment in respect of any vested
RSU, such RSU will represent an unsecured obligation of the Company, payable (if at all) only from
the general assets of the Company.
3. Vesting and Termination. The RSUs shall vest and shall terminate in such amounts
and at such times as are set forth in the Grant Notice. No portion of the RSUs which has not
become vested at the date of the Participant’s termination of employment with the Company shall
thereafter become vested.
4. Payment after Vesting; Code Section 409A. Payments in respect of any RSUs that
vest in accordance herewith shall be made to the Participant (or in the event of the Participant’s
death, to the Participant’s estate) in whole shares of Stock (or, in the sole discretion of the
Committee, in cash) as soon as practicable, but in any event within sixty (60) days, after the date
on which such RSUs vest (the “Payment Date”).
5. Tax Withholding. The Company shall have the authority and the right to deduct or
withhold, or to require the Participant to remit to the Company, an amount sufficient to satisfy
all applicable federal, state and local taxes (including the Participant’s employment tax
obligations) required by law to be withheld with respect to any taxable event arising in connection
with the RSUs. Unless otherwise determined by the Committee, the Company shall, in satisfaction of
the foregoing requirement, withhold shares of Stock otherwise issuable in respect of any RSUs
having a Fair Market Value equal to the sums required to be withheld, and the Participant hereby
agrees to such withholding of shares.
6. Rights as Shareholder. Neither the Participant nor any person claiming under or
through the Participant will have any of the rights or privileges of a shareholder of the Company
in respect of any shares of Stock that may become deliverable hereunder unless and until
certificates representing such shares of Stock shall have been issued, recorded on the records of
the Company or its transfer agents or registrars, and delivered to the Participant or any person
claiming under or through the Participant.
7. Non-Transferability. Unless transferred to a permitted transferee in accordance
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with Section 10.3 of the Plan, RSUs may not be sold, pledged, assigned or transferred in any
manner other than by will or the laws of descent and distribution, unless and until the shares of
Stock underlying the RSUs have been issued (or cash distributed in lieu of Stock), and all
restrictions applicable to any such shares of Stock have lapsed. Neither the RSUs nor any interest
or right therein shall be liable for the debts, contracts or engagements of the Participant or his
successors in interest or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition be voluntary or
involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or
equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null
and void and of no effect, except to the extent that such disposition is permitted by the preceding
sentence.
8. Distribution of Stock. Notwithstanding anything herein to the contrary, (a) no
payment shall be made under this Agreement in the form of shares of Stock unless such shares of
Stock issuable upon such payment are then registered under the Securities Act or, if such shares of
Stock are not then so registered, the Committee has determined that such payment and issuance would
be exempt from the registration requirements of the Securities Act, and (b) the Company shall not
be required to issue or deliver any certificates evidencing shares of Stock pursuant to this
Agreement unless and until the Committee (i) has determined that the issuance and delivery of such
certificates are in compliance with all applicable laws and regulations and, if applicable, the
requirements of any exchange on which the shares of Stock are listed or traded, and (ii) has
obtained the consent or approval of any governmental or regulatory authority that the Committee
deems to be necessary or desirable as a condition to the issuance of any such certificates to the
Participant (or his or her estate). All certificates delivered pursuant to this Agreement shall be
subject to any stop-transfer orders and other restrictions as the Committee deems necessary or
advisable to comply with federal, state, or local securities or other laws, rules and regulations
and the rules of any national securities exchange or automated quotation system on which the shares
of Stock are listed, quoted, or traded. The Committee may place legends on any certificate to
reference restrictions applicable to the shares of Stock. In addition to the terms and conditions
provided herein, the Committee may require that the Participant make such covenants, agreements,
and representations as the Committee, in its sole discretion, deems advisable in order to comply
with any such laws, regulations, or requirements. The Committee shall have the right to require the
Participant to comply with any timing or other restrictions with respect to the settlement of any
RSUs pursuant to this Agreement, including a window-period limitation, as may be imposed in the
discretion of the Committee. Any shares of Stock that may be distributed pursuant to this
Agreement may consist, in whole or in part, of authorized and unissued shares, treasury shares or
shares purchased on the open market. No fractional shares shall be issued and the Committee shall
determine, in its sole discretion, whether cash shall be given in lieu of fractional shares or
whether such fractional shares shall be eliminated by rounding up or down as appropriate.
9. Lock-Up Period. The Participant hereby agrees that, if so requested by the Company
or any representative of the underwriters (the “Managing Underwriter”) in connection with
any registration of the offering of any securities of the Company under the Securities Act or any
applicable state laws, the Participant shall not sell or otherwise transfer any shares of Stock or
other securities of the Company during (a) the 180-day period (or such longer period as
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may be requested in writing by the Managing Underwriter and agreed to in writing by the
Company) following the effective date of a registration statement of the Company filed under the
Securities Act in connection with the Company’s initial public offering of Common Stock, or (b) the
90-day period following the effective date of a registration statement filed by the Company under
the Securities Act in connection with any other public offering of Common Stock (in either case,
the “Market Standoff Period”). The Company may impose stop-transfer instructions with
respect to securities subject to the foregoing restrictions until the end of such Market Standoff
Period and these restrictions shall be binding on any transferee of such shares.
10. Restrictions on Shares. Shares of Stock issued pursuant to the RSUs shall be
subject to such terms and conditions as the Committee shall determine in its sole discretion,
including, without limitation, transferability restrictions, repurchase rights, requirements that
such shares be transferred in the event of certain transactions, rights of first refusal with
respect to permitted transfers of shares, voting agreements, tag-along rights and bring-along
rights. Such terms and conditions may, in the Committee’s sole discretion, be contained in a
stockholders’ agreement or such other agreement as the Committee shall determine, in each case in a
form determined by the Committee. The issuance of such shares shall be conditioned on the
Participant’s consent to such terms and conditions and/or the Participant’s entering into such
agreement or agreements. Without limiting the generality of the foregoing, Participant hereby
agrees that as a condition to the issuance of shares of Stock pursuant to the RSUs, at the
Company’s request, Participant shall execute a stockholders’ agreement (or joinder or counterpart
signature page thereto) in a form prescribed by the Company (a “Stockholders’ Agreement”)
and that Participant and any and all shares issued pursuant to the RSUs shall be subject to the
terms and conditions of the Stockholders’ Agreement.
11. No Effect on Employment. Nothing in this Agreement or in the Plan shall confer
upon the Participant any right to continue to serve as an employee or other service provider of the
Company or any of its Subsidiaries.
12. Severablility. In the event that any provision in this Agreement is held invalid
or unenforceable, such provision will be severable from, and such invalidity or unenforceability
will not be construed to have any effect on, the remaining provisions of this Agreement, which
shall remain in full force and effect.
13. Tax Consultation. The Participant understands that the Participant may suffer
adverse tax consequences in connection with the RSUs granted pursuant to this Agreement. The
Participant represents that the Participant has consulted with any tax consultants that the
Participant deems advisable in connection with the RSUs and that the Participant is not relying on
the Company for tax advice.
14. Amendments, Suspension and Termination. To the extent permitted by the Plan, this
Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any
time or from time to time by the Committee.
15. Relationship to other Benefits. Neither the RSUs nor payment in respect thereof
shall be taken into account in determining any benefits pursuant to any pension, retirement,
savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any
Subsidiary.
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16. Conformity to Securities Laws. The Participant acknowledges that the Plan and
this Agreement are intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act and any and all regulations and rules promulgated by the
Securities and Exchange Commission thereunder, and all applicable state securities laws
and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered,
and the RSUs are granted, only in such a manner as to conform to such laws, rules and regulations.
To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to
the extent necessary to conform to such laws, rules and regulations.
17. Limitations Applicable to Section 16 Persons. Notwithstanding any other provision
of the Plan or this Agreement, if the Participant becomes subject to Section 16 of the Exchange
Act, the Plan, the RSUs and this Agreement shall be subject to any additional limitations set forth
in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.
To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.
18. Code Section 409A. Certain amounts payable under this Agreement may constitute
“nonqualified deferred compensation” which is intended to comply with the requirements of Section
409A of the Code. To the extent that any amounts payable under this Agreement are subject to
Section 409A of the Code, this Agreement shall be deemed to incorporate the terms and conditions
required by Section 409A of the Code and Department of Treasury regulations. In the event that
following the Grant Date, the Company determines that any amounts payable under this Agreement may
not be compliant with Section 409A of the Code and related Department of Treasury guidance, the
Company may adopt such amendments to this Agreement or adopt other policies or procedures
(including amendments, policies and procedures with retroactive effective), or take any other
action that the Company determines to be necessary or appropriate to (a) exempt the amounts payable
under this Agreement from Section 409A of the Code and/or preserve the intended tax treatment of
such amounts, or (b) comply with the requirements of Section 409A of the Code and related
Department of Treasury guidance. Nothing herein shall, or shall be construed so as to, limit the
generality of Section 16.14 of the Plan.
19. Adjustments. The Participant acknowledges that the RSUs are subject to
modification and termination in certain events as provided in this Agreement and Article 11 of the
Plan.
20. Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer contained herein,
this Agreement shall be binding upon the Participant and his or her heirs, executors,
administrators, successors and assigns.
21. Governing Law. The laws of the State of Delaware shall govern the interpretation,
validity, administration, enforcement and performance of the terms of this
Agreement regardless of the law that might be applied under principles of conflicts of
laws.
22. Captions. Captions provided herein are for convenience only and are not to
serve as a basis for interpretation or construction of this Agreement.
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