Document:

EX-10.17

Exhibit 10.17

L-3 COMMUNICATIONS HOLDINGS, INC.

2008 LONG TERM PERFORMANCE PLAN

RESTRICTED STOCK UNIT AGREEMENT

(Version 0004)

     This Restricted Stock Unit Agreement (this “Agreement”), effective as of the Grant Date (as
defined below), is between L-3 Communications Holdings, Inc., a Delaware corporation (the
“Corporation”), and the Participant (as defined below).

     1. Definitions. The following terms shall have the following meanings for purposes of
this Agreement:

          (a) “Award Letter” shall mean the letter to the Participant attached hereto as Exhibit A.

          (b) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          (c) “Grant Date” shall mean the “Grant Date” listed in the Award Letter.

          (d) “Participant” shall mean the “Participant” listed in the Award Letter.

          (e) “Restricted Units” shall mean that number of restricted units listed in the Award Letter
as “Awards Granted.”

          (f) “Section 409A Change in Control Event” shall mean a change in ownership or effective
control of the Corporation, or in the ownership of a substantial portion of the assets of the
Corporation, within the meaning of Section 409A(a)(2)(A)(v) of the Code.

          (g) “Shares” shall mean a number of shares of the Corporation’s Common Stock, par value $0.01
per share, equal to the number of Restricted Units.

     2. Grant of Units. The Corporation hereby grants the Restricted Units to the
Participant, each of which represents the right to receive one Share upon the expiration or
termination of the Restricted Period (as defined below), subject to the terms, conditions and
restrictions set forth in the L-3 Communications Holdings, Inc. 2008 Long Term Performance Plan
(the “Plan”) and this Agreement.

     3. Restricted Unit Account. The Corporation shall cause an account (the “Unit
Account”) to be established and maintained on the books of the Corporation to record the number of
Restricted Units credited to the Participant under the terms of this Agreement. The Participant’s
interest in the Unit Account shall be that of a general, unsecured creditor of the Corporation.

     4. Restricted Period. Except as otherwise provided in paragraphs 6 and 7 hereof, the
“Restricted Period” shall mean the period beginning on the Grant Date and expiring on the third
anniversary of the Grant Date. Upon the expiration or termination of the Restricted Period, the
Shares shall be issued to the Participant in accordance with Section 13.

     5. Restrictions on Transfer During Restricted Period. Until the Restricted Period has
expired or terminated, the Restricted Units shall not be sold, assigned, transferred, pledged,
hypothecated, loaned, or otherwise disposed of, and during the Participant’s lifetime the
Participant’s rights with respect

 

 

to the Restricted Units shall be exercised only by such Participant or by his or her guardian
or legal representative, except that the Restricted Units may be transferred by will or by the laws
of descent and distribution. Any sale, assignment, transfer, pledge, hypothecation, loan or other
disposition other than in accordance with this Section 5 shall be null and void.

     6. Change in Control During Restricted Period. Upon the occurrence of a “change in
control” that constitutes a Section 409A Change in Control Event, the Restricted Period shall
automatically terminate and the Shares shall thereafter be issued to the Participant in accordance
with Section 13. In the event of any other “change in control,” the Restricted Period shall not be
immediately affected, but shall subsequently terminate (and the Shares shall thereafter be issued
to the Participant in accordance with Section 13) upon the earliest to occur of: (a) a Section 409A
Change in Control Event, (b) the Participant’s death, (c) the six-month anniversary of the
termination of the Participant’s employment with the Corporation and its subsidiaries due to
“disability” (as defined in Section 7(c) hereof) or (d) the third anniversary of the Grant Date.
For purposes of this Agreement, a “change in control” means:

          (a) The acquisition by any person or group (including a group within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than the Corporation or any of its
subsidiaries, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of a majority of the combined voting power of the Corporation’s then outstanding
voting securities, other than by any employee benefit plan maintained by the Corporation;

          (b) The sale of all or substantially all the assets of the Corporation and its subsidiaries
taken as a whole; or

          (c) The election, including the filling of vacancies, during any period of 24 months or less,
of 50% or more of the members of the Board of Directors, without the approval of Continuing
Directors, as constituted at the beginning of such period. “Continuing Directors” shall mean any
director of the Corporation who either (i) is a member of the Board of Directors on the Grant Date,
or (ii) is nominated for election to the Board of Directors by a majority of the Board which is
comprised of directors who were, at the time of such nomination, Continuing Directors.

     7. Termination of Employment During Restricted Period.

          (a) In the event that the Participant’s employment with the Corporation and its subsidiaries
is terminated (other than by reason of death, “retirement” or “disability,” as defined below) prior
to the expiration or termination of the Restricted Period and prior to the occurrence of a “change
in control” (as defined in Section 6), the Participant shall forfeit the Restricted Units and all
of the Participant’s rights hereunder shall cease (unless otherwise provided for by the Committee
in accordance with the Plan). The Participant’s rights to the Restricted Units shall not be
affected by any change in the nature of the Participant’s employment so long as the Participant
continues to be an employee of the Corporation or any of its subsidiaries.

          (b) In the event the Participant terminates employment with the Corporation and its
subsidiaries because of “retirement” prior to the expiration or termination of the Restricted
Period and prior to the occurrence of a “change in control” (as defined in Section 6), the
Restricted Period shall not be affected and shall expire with the passage of time in accordance
with paragraph 4, except that (i) in the event that the Participant dies following retirement but
prior to the expiration of the Restricted Period, the Restricted Period shall automatically
terminate and the Shares shall thereafter be delivered to the Participant’s transferee(s) in
accordance with Sections 5 and 13 and (ii) the Restricted Period may earlier

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terminate in accordance with Section 6. For purposes of this Agreement, retirement means the
Participant (A) terminates employment with the Corporation and its subsidiaries other than for
Cause (and is not subject to termination for Cause at the time of such termination) more than one
year after the Grant Date, (B) is available for consultation with the Corporation or any of its
subsidiaries at the reasonable request of the Corporation or one of its subsidiaries and (C)
terminates employment on or after attaining age 65 and completing at least five years of service in
the aggregate with the Corporation and its subsidiaries (which service must be continuous through
the date of termination except for a single break in service that does not exceed one year in
length). For purposes of this Agreement, “Cause” means the Participant’s (1) intentional failure
to perform reasonably assigned duties, (2) dishonesty or willful misconduct in the performance of
duties, (3) engaging in a transaction in connection with the performance of duties to the
Corporation or its subsidiaries which transaction is adverse to the interests of the Corporation
and is engaged in for personal profit or (4) willful violation of any law, rule or regulation in
connection with the performance of duties (other than traffic violations or similar offenses).

          (c) If the Participant’s employment with the Corporation and its subsidiaries is terminated
because of death, the Restricted Period shall automatically terminate and the Shares shall
thereafter be issued to the Participant (or to the Participant’s transferee(s) under Section 5 as
the case may be) in accordance with Section 13. If the Participant’s employment with the
Corporation and its subsidiaries is terminated because of “disability,” the Restricted Period shall
not be immediately affected, but shall subsequently terminate (and the Shares shall thereafter be
issued to the Participant in accordance with Section 13) upon the earliest to occur of: (i) the
six-month anniversary of the date of termination, (ii) the Participant’s death, (iii) a Section
409A Change in Control Event or (iv) the third anniversary of the Grant Date. For purposes of this
Agreement, disability means the Participant, as a result of incapacity due to physical or mental
illness, becomes eligible for benefits under the long-term disability plan or policy of the
Corporation or a subsidiary in which the Participant is eligible to participate.

          (d) Whether (and the circumstances under which) employment has been terminated and the
determination of the termination date for the purposes of this Agreement shall be determined by the
Committee or (with respect to any employee other than an “Executive Officer” as defined under the
Plan) its designee (who, at the date of this Agreement, shall be the Corporation’s Vice President
of Human Resources), whose good faith determination shall be final, binding and conclusive;
provided, that such designee may not make any such determination with respect to his or her
own employment.

     8. Dividends. If the Corporation pays a cash dividend on its common stock, the
Participant shall accrue in his or her Dividend Account (as defined below) a cash dividend
equivalent with respect to the Restricted Units credited to the Participant’s Unit Account as of
the record date for the dividend, with each Restricted Unit being equivalent to one share of common
stock. The Corporation shall cause an account (the “Dividend Account”) to be established and
maintained as part of the records of the Corporation to evidence the aggregate cash dividend
equivalents accrued by the Participant from time to time under this Section. No interest shall
accrue on any amounts reflected in the Dividend Account. The Participant’s interest in the amounts
reflected in the Dividend Account shall be that of a general, unsecured creditor of the
Corporation. Subject to, and as promptly as practicable following, the issuance of the Shares
pursuant to Section 13 hereunder, the Corporation shall pay an amount in cash (without interest and
subject to applicable withholding taxes) to the Participant (or his or her transferee(s) who are
issued the Shares pursuant to Section 13 hereunder) equal to the aggregate cash dividend
equivalents accrued in the Participant’s Dividend Account and the Participant’s Dividend Account
shall be eliminated at that time. In the event that the Participant forfeits his or her rights to
the Restricted Units, the Participant also shall be deemed to have forfeited his or her rights to
any cash dividend equivalents accrued in the Participant’s Dividend Account and the Participant’s
Dividend Account shall be eliminated at that time.

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     9. No Right to Continued Employment. Nothing in this Agreement or the Plan shall be
interpreted or construed to confer upon the Participant any right to continue employment by the
Corporation or any of its subsidiaries, nor shall this Agreement or the Plan interfere in any way
with the right of the Corporation or any of its subsidiaries to terminate the Participant’s
employment at any time for any reason whatsoever, whether or not with cause.

     10. No Rights as a Stockholder. The Participant’s interest in the Restricted Units
shall not entitle the Participant to any rights as a stockholder of the Corporation. The
Participant shall not be deemed to be the holder of, or have any of the rights and privileges of a
stockholder of the Corporation in respect of, the Shares unless and until such Shares have been
issued to the Participant in accordance Section 13.

     11. Adjustments Upon Change in Capitalization. In the event of any reorganization,
merger, consolidation, recapitalization, reclassification, stock split, stock dividend or similar
capital adjustment, as a result of which shares of any class shall be issued in respect of
outstanding shares of the Corporation’s Common Stock or shares of Corporation’s Common Stock shall
be changed into a different number of shares or into another class or classes or into other
property or cash, the Restricted Units, the Participant’s Unit Account and/or the Shares shall be
adjusted to reflect such event so as to preserve (without enlarging) the value of the award
hereunder, with the manner of such adjustment to be determined by the Committee in its sole
discretion. This paragraph shall also apply with respect to any extraordinary dividend or other
extraordinary distribution in respect of the Corporation’s Common Stock (whether in the form of
cash or other property).

     12. General Restrictions. Notwithstanding anything in this Agreement to the contrary,
the Corporation shall have no obligation to issue or transfer the Shares as contemplated by this
agreement unless and until such issuance or transfer shall comply with all relevant provisions of
law and the requirements of any stock exchange on which the Corporation’s shares are listed for
trading.

     13. Issuance of Shares. Upon the expiration or termination of the Restricted Period
and payment by the Participant of any applicable taxes pursuant to Section 14 of this Agreement,
the Corporation shall, as soon as reasonably practicable (and in any event within 75 days of the
termination or expiration of the Restricted Period), but subject to any delay necessary to comply
with Section 12 hereof, issue the Shares to the Participant, free and clear of all restrictions;
provided, that if the termination of the Restricted Period results from a Section 409A
Change in Control Event, then notwithstanding the foregoing, the Shares shall be issued within 30
days of the Section 409A Change in Control Event. The Corporation shall not be required to deliver
any fractional Shares, but shall pay, in lieu thereof, the fair market value (as defined in the
Plan) as of the date the restrictions lapse of such fractional share to the Participant. The
Corporation shall pay any costs incurred in connection with issuing the Shares. Upon the issuance
of the Shares to the Participant, the Participant’s Unit Account shall be eliminated.
Notwithstanding the provisions of this Section, if the Restricted Units have been transferred in
accordance with the provisions of Section 5 prior to the issuance of the Shares to the Participant
in accordance with this Section, then the issuance of the Shares and any payment in lieu of
fractional Shares shall be made to the transferee(s).

     14. Tax Withholding. Upon the expiration or termination of the Restricted Period, the
Participant shall remit to the Corporation the minimum amount necessary to satisfy Federal, state,
local or foreign withholding tax requirements, if any (“Withholding Taxes”) as a condition to the
Corporation’s issuance of any Shares as provided in Section 13. The payment shall be in (i) cash,
(ii) the delivery of Shares, (iii) a reduction in the number of Shares otherwise issuable or
deliverable or other amounts

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otherwise payable to the Participant pursuant to this Agreement, or (iv) a combination of (i), (ii)
and/or (iii). The value of any Shares delivered or withheld as payment in respect of withholding
tax requirements shall be determined by reference to the Fair Market Value of such Shares as of the
date of such withholding or delivery. In the event that Withholding Taxes are satisfied by
withholding a portion of the Shares otherwise issuable or deliverable to the Participant pursuant
to this Agreement, the Corporation shall not withhold any Shares in excess of the minimum number of
Shares necessary to satisfy the applicable Withholding Taxes.

     15. Subsidiary. As used herein, the term “subsidiary” shall mean, as to any person,
any corporation, association, partnership, joint venture or other business entity of which 50% or
more of the voting stock or other equity interests (in the case of entities other than
corporations), is owned or controlled (directly or indirectly) by that entity, or by one or more of
the Subsidiaries of that entity, or by a combination thereof.

     16. Plan Governs. The Participant hereby acknowledges receipt of a copy of the Plan
and agrees to be bound by its terms, all of which are incorporated herein by reference. The Plan
shall govern in the event of any conflict between this Agreement and the Plan.

     17. Modification of Agreement. This Agreement may be modified, amended, suspended or
terminated, and any terms or conditions may be waived, but, subject to the terms and conditions of
the Plan and this Agreement, only by a written instrument executed by the parties hereto.

     18. Severability. Should any provision of this Agreement be held by a court of
competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of
this Agreement shall not be affected by such holding and shall continue in full force in accordance
with their terms.

     19. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of New York without giving effect to the
conflicts of laws principles thereof. If the Participant has received a copy of this Agreement (or
the Plan or any other document related hereto or thereto) translated into a language other than
English, such translated copy is qualified in its entirety by reference to the English version
thereof, and in the event of any conflict the English version will govern.

     20. Successors in Interest. This Agreement shall inure to the benefit of and be
binding upon any successor to the Corporation. This Agreement shall inure to the benefit of the
Participant or the Participant’s legal representatives. All obligations imposed upon the
Participant and all rights granted to the Corporation under this Agreement shall be final, binding
and conclusive upon the Participant’s heirs, executors, administrators and successors.

     21. Administration. The Committee shall have the power to interpret the Plan and this
Agreement and to adopt such rules for the administration, interpretation and application of the
Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken and
all interpretations and determinations made by the Committee shall be final and binding upon the
Participant, the Corporation and all other interested persons. No member of the Committee shall be
personally liable for any action determination or interpretation made in good faith with respect to
the Plan or the Restricted Units. In its absolute discretion, the Board of Directors may at any
time and from time to time exercise any and all rights and duties of the Committee under the Plan
and this Agreement.

     22. Resolution of Disputes. Any dispute or disagreement which may arise under, or as a
result of, or in any way related to, the interpretation, construction or application of this
Agreement shall

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be determined by the Committee. Any determination made hereunder shall be final, binding and
conclusive on the Participant and Corporation for all purposes.

     23. Data Privacy Consent. As a condition of the grant of the Restricted Units, the
Participant hereby consents to the collection, use and transfer of personal data as described in
this paragraph. The Participant understands that the Corporation and its subsidiaries hold certain
personal information about the Participant, including name, home address and telephone number, date
of birth, social security number, salary, nationality, job title, ownership interests or
directorships held in the Corporation or its subsidiaries, and details of all restricted units or
other equity awards or other entitlements to shares of common stock awarded, cancelled, exercised,
vested or unvested (“Data”). The Participant further understands that the Corporation and its
subsidiaries will transfer Data among themselves as necessary for the purposes of implementation,
administration and management of the Participant’s participation in the Plan, and that the
Corporation and any of its subsidiaries may each further transfer Data to any third parties
assisting the Corporation in the implementation, administration and management of the Plan. The
Participant understands that these recipients may be located in the European Economic Area or
elsewhere, such as the United States. The Participant hereby authorizes them to receive, possess,
use, retain and transfer such Data as may be required for the administration of the Plan or the
subsequent holding of shares of common stock on the Participant’s behalf, in electronic or other
form, for the purposes of implementing, administering and managing the Participant’s participation
in the Plan, including any requisite transfer to a broker or other third party with whom the
Participant may elect to deposit any shares of common stock acquired under the Plan. The
Participant may, at any time, view such Data or require any necessary amendments to it.

     24. Limitation on Rights; No Right to Future Grants; Extraordinary Item of
Compensation. By accepting this Agreement and the grant of the Restricted Units contemplated
hereunder, the Participant expressly acknowledges that (a) the Plan is discretionary in nature and
may be suspended or terminated by the Corporation at any time; (b) the grant of Restricted Units is
a one-time benefit that does not create any contractual or other right to receive future grants of
restricted units, or benefits in lieu of restricted units; (c) all determinations with respect to
future grants of restricted units, if any, including the grant date, the number of Shares granted
and the restricted period, will be at the sole discretion of the Corporation; (d) the Participant’s
participation in the Plan is voluntary; (e) the value of the Restricted Units is an extraordinary
item of compensation that is outside the scope of the Participant’s employment contract, if any,
and nothing can or must automatically be inferred from such employment contract or its
consequences; (f) grants of restricted units are not part of normal or expected compensation for
any purpose and are not to be used for calculating any severance, resignation, redundancy, end of
service payments, bonuses, long-service awards, pension or retirement benefits or similar payments,
and the Participant waives any claim on such basis; and (g) the future value of the underlying
Shares is unknown and cannot be predicted with certainty. In addition, the Participant understands,
acknowledges and agrees that the Participant will have no rights to compensation or damages related
to restricted unit proceeds in consequence of the termination of the Participant’s employment for
any reason whatsoever and whether or not in breach of contract.

     25. Award Administrator. The Corporation may from time to time to designate a third
party (an “Award Administrator”) to assist the Corporation in the implementation, administration
and management of the Plan and any Restricted Units granted thereunder, including by sending Award
Letters on behalf of the Corporation to Participants, and by facilitating through electronic means
acceptance of Restricted Unit Agreements by Participants.

     26. Section 409A. This Agreement is intended to comply with the provisions of
Section 409A of the Code and the regulations promulgated thereunder. Without limiting the
foregoing,

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the Committee shall have the right to amend the terms and conditions of this Agreement in any
respect as may be necessary or appropriate to comply with Section 409A of the Code or any
regulations promulgated thereunder, including without limitation by delaying the issuance of the
Shares contemplated hereunder.

     27. Book Entry Delivery of Shares. Whenever reference in this Agreement is made to
the issuance or delivery of certificates representing one or more Shares, the Corporation may elect
to issue or deliver such Shares in book entry form in lieu of certificates.

     28. Acceptance. This Agreement shall not be enforceable until it has been executed by
the Participant. In the event the Corporation has designated an Award Administrator, the
acceptance (including through electronic means) of the Restricted Unit award contemplated by this
Agreement in accordance with the procedures established from time to time by the Award
Administrator shall be deemed to constitute the Participant’s acknowledgment and agreement to the
terms and conditions of this Agreement and shall have the same legal effect in all respects of the
Participant having executed this Agreement by hand.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	L-3 COMMUNICATIONS HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Michael T. Strianese
 

Michael T. Strianese
	 	 
	 

	 	 	 	 	 	President and Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	/s/ Steven M. Post
 

Steven M. Post
	 	 
	 

	 	 	 	 	 	Senior Vice President, General Counsel and

     Corporate Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	Acknowledged and Agreed

as of the date first written above:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 

Participant Signature

	 	 	 	 	 	 	 	 

7EX-10.20

Exhibit
10.20

L-3 COMMUNICATIONS HOLDINGS, INC.

2008 DIRECTORS STOCK INCENTIVE PLAN

1.     Purpose of the Plan

     The L-3 Communications Holdings, Inc. 2008 Directors Stock Incentive Plan (the “Plan”) is
designed:

     (a)     to promote the long-term financial interests and growth of L-3 Communications Holdings,
Inc. (the “Corporation”) and its Subsidiaries by attracting and retaining Non-Employee Directors
with the training, experience and ability to enable them to make a substantial contribution to the
success of the Corporation’s business; and

     (b)     to further the alignment of interests of Non-Employee Directors with those of the
stockholders of the Corporation through opportunities for increased stock, or stock-based,
ownership in the Corporation.

2.     Definitions

     As used in the Plan, the following words shall have the following meanings:

     (a)     “Award” means any award granted pursuant to Section 3.

     (b)     “Award Agreement” means an agreement described in Section 6 by the Corporation for the
benefit of a Participant, setting forth (or incorporating by reference) the terms and conditions of
an Award granted to a Participant.

     (c)     “Board of Directors” means the Board of Directors of the Corporation.

     (d)     “Code” means the Internal Revenue Code of 1986, as amended.

     (e)     “Committee” means the Compensation Committee of the Board of Directors.

     (f)     “Common Stock” or “Share” means common stock, par value $.01 per share of the Corporation,
subject to adjustments made under Sections 8 and 9 or by operation of law.

     (g)     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (h)     “Fair Market Value” means, unless otherwise defined in an Award Agreement, the closing
price of the Common Stock as reported on the composite tape of New York Stock Exchange issues (or
if, at the date of determination, the Common Stock is not so listed or if the principal market on
which it is traded is not the New York Stock Exchange, such other reporting system as shall be
selected by the Committee) on the relevant date, or, if no sale of the Common Stock is reported for
that date, the next preceding day for which there is a reported sale. The
Committee shall determine the Fair Market Value of any security that is not publicly traded, using
criteria as it shall determine, in its sole direction, to be appropriate for the valuation.

 

 

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     (i)     “Non-Employee Director” means a director of the Corporation who is not (i) an employee of
the Corporation or any of its Subsidiaries, (ii) a director, officer or employee of any entity
that owns, beneficially or of record, directly or indirectly, 10% or more of the Common Stock
outstanding on the date of grant of the Award or (iii) a person that owns, beneficially or of
record, directly or indirectly, 10% or more of the Common Stock outstanding on the date of grant of
the Award.

     (j)     “Participant” means a Non-Employee Director to whom one or more grants of Awards have been
made and such grants have not all been forfeited or terminated under the Plan.

     (k)     “Subsidiary” shall mean any corporation in an unbroken chain of corporations beginning
with the Corporation if each of the corporations, or group of commonly controlled corporations,
other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain.

3.     Awards

     (a)     Type of Awards. Participants may be granted any of the following types of
Awards, either singly, in tandem or in combination with other Awards, at such times and for such
number of shares of Common Stock as shall be determined from time to time by the Board of Directors
(and/or the Committee to the extent such authority is delegated thereto in whole or in part by the
Board of Directors):

     (1)     Options. An Option is an Award in the form of an option to purchase shares of Common
Stock that is not intended to comply with requirements of Section 422 of the Code. The exercise
price of each Option granted under this Plan shall not be less than the Fair Market Value of the
Common Stock on the date that the Option is granted. No dividend equivalents may be paid on
unissued shares of Common Stock underlying an Award of Options.

     (2)     Restricted Stock. Restricted Stock is an Award of issued shares of Common Stock (other
than Minimum Ownership Stock) that are subject to restrictions on transfer and/or such other
restrictions on incidents of ownership as the Committee may determine. Unless otherwise provided
by the Committee in the applicable Award Agreement, the vesting period for Awards of Restricted
Stock shall be three years following date of grant.

     (3)     Restricted Stock Units. A Restricted Stock Unit is an Award of bookkeeping credits that
automatically convert into shares of Common Stock upon satisfaction of a stated vesting period or
requirement. Restricted Stock Units are not outstanding shares of Common Stock and do not entitle
a Participant to voting or other rights with respect to Common Stock; provided, however, that the
applicable Award Agreement may provide for the payment of dividend equivalents on unissued shares
of Common Stock underlying an Award of Restricted
Stock Units, on either a current or deferred or contingent basis, and either in cash or in
additional shares of Common Stock.

     (4)     Minimum Ownership Stock. Minimum Ownership Stock is an Award of shares of Common Stock
that are issued to the Participant in lieu of cash compensation otherwise payable to the
Participant in order to satisfy the Corporation’s applicable stock ownership guidelines from time
to time in effect. Minimum Ownership Stock shall not be subject to any vesting period or
requirement, but may be subject to restrictions on transfer and/or such other restrictions on
incidents of ownership as the Committee may determine.

 

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     (b)     At or prior to the time of the grant of each Award the Committee shall determine, and
shall include or incorporate by reference in the Award Agreement, such other conditions or
restrictions on the grant or exercise of the Award as the Committee deems appropriate.

4.     Shares of Common Stock Subject to the Plan

     (a)     Subject to the provisions of Section 8 and this Section 4, the maximum number of shares of
Common Stock that may be issued pursuant to all Awards under the Plan is 300,000. Any unexercised,
unconverted or undistributed portion of any expired, cancelled, terminated or forfeited Award, or
any alternative form of consideration under an Award that is not paid in connection with the
settlement of an Award or any portion of an Award (including any shares under an Award that are not
issued in consideration for a cash settlement of equivalent value), shall again be available for
Awards under the Plan, whether or not the Participant has received benefits of ownership (such as
dividends or dividend equivalents or voting rights) during the period in which the Participant’s
ownership was restricted or otherwise not vested. For the avoidance of doubt, the following shares
of Common Stock shall not become available for reissuance under the Plan: (1) shares tendered by
Participants as full or partial payment to the Corporation upon exercise of Options and (2) shares
withheld by, or otherwise remitted to, the Corporation to satisfy a Participant’s tax withholding
obligations in connection with an Award.

     (b)     Shares of Common Stock deliverable under the terms of the Plan may be, in whole or in
part, authorized and unissued shares of Common Stock, or issued shares of Common Stock held in the
Corporation’s treasury, or both.

     (c)     The Corporation shall at all times reserve a number of shares of Common Stock (authorized
and unissued shares of Common Stock, issued shares of Common Stock held in the Corporation’s
treasury, or both) equal to the maximum number of shares of Common Stock that may be subject to
outstanding Award grants and future Award grants under the Plan.

5.     Administration of the Plan

     (a)     The Plan shall be administered by the Committee or a subcommittee appointed by the
Committee. The Committee may adopt its own rules of procedure, and action of a majority of the
members of the Committee taken at a meeting, or action taken without a meeting by
unanimous written consent, shall constitute action by the Committee. The Committee shall have the
power and authority to administer, construe and interpret the Plan, to make rules for carrying it
out and to make changes in such rules. Any such interpretations, rules and administration shall be
consistent with the basic purposes of the Plan.

     (b)     The participating members of the Committee administering the Plan shall include only those
members of the Committee who are “Non-Employee Directors” (as defined in Rule 16b-3 promulgated
under the Exchange Act).

     (c)     Unless in contravention to any laws, rules and regulations governing the Plan, including
the Exchange Act, the Committee may delegate to the chief executive officer and to other senior
officers of the Corporation its duties under the Plan subject to such conditions and limitations as
the Committee shall prescribe; provided that under no circumstances may the chief executive officer
or any other senior officer be delegated any authority (including the authority to approve or award
the grant of an Award), except as permitted under New York and Delaware law.

 

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     (d)     The Committee may employ attorneys, consultants, accountants, appraisers, brokers or other
persons in respect of the administration of the Plan, who may be employees of the Corporation or
outside advisers to the Corporation. The Committee, the Corporation, and the officers and
directors of the Corporation shall be entitled to rely upon the advice, opinions or valuations of
any such persons. All actions taken and all interpretations and determinations made by the
Committee in good faith shall be final and binding upon all Participants, the Corporation and all
other interested persons. No member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or Award grants, and
all members of the Committee shall be fully protected, indemnified and held harmless by the
Corporation with respect to any such action, determination or interpretation.

6.     Eligibility

     Award grants may be made under this Plan only to Non-Employee Directors of the Corporation.
The terms, conditions and limitations of each Award granted under the Plan shall be set forth or
incorporated by reference in an Award Agreement, in a form approved by the Committee, consistent,
however, with the terms of the Plan; provided, however, that such Award Agreement shall contain or
incorporate by reference provisions dealing with the treatment of Awards (including forfeiture or
acceleration of vesting of all or a portion of the Award) in the event of the termination, death or
disability of a Participant, or a change of control of the Corporation.

7.     Limitations and Conditions

     (a)     No Award that contemplates exercise or conversion may be exercised or converted to any
extent, and no other Award that defers vesting shall remain outstanding and unexercised,
unconverted or unvested, more than ten years after the date the Award was initially granted.

     (b)     Nothing contained herein shall affect the right of the Corporation or its directors or
stockholders to remove any Non-Employee Director in accordance with the Certificate of
Incorporation, By-laws of the Corporation or applicable law.

     (c)     Other than by will or by the laws of descent and distribution, no benefit under the Plan
shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to do so shall be void, except that Awards may be
transferred to and exercised by a family member or family members of a Participant, or transferred
to an irrevocable trust or trusts (or other similar estate planning entity or entities) established
for the benefit of a Participant and/or one or more of the Participant’s family members. No such
benefit shall, prior to receipt thereof by the Participant, be in any manner or subject to
attachment, satisfaction or discharge of the debts, contracts, liabilities, engagements, or
obligations arising in respect of torts of the Participant. The designation of a beneficiary
hereunder shall not constitute a transfer prohibited by the foregoing provisions.

     (d)     A Participant shall have no rights as a holder of Common Stock with respect to any
unissued securities covered by an Award until the date the Participant becomes the holder of record
of these securities. Except as provided in Section 8, no adjustment or other provision shall be
made for dividends or other stockholder rights, except to the extent that the Award Agreement
provides for dividend equivalents or similar economic benefits.

 

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     (e)     During the lifetime of a Participant, an election as to benefits and/or the exercise of
Awards may be made only by such Participant or by his or her guardian, trustee or other legal
representative, except that Awards may be transferred to and exercised by a family member or family
members of a Participant, or transferred to an irrevocable trust or trusts (or other similar estate
planning entity or entities) established for the benefit of a Participant and/or one or more of the
Participant’s family members.

     (f)     Absent express provisions to the contrary, any grant of Awards under this Plan shall not
be deemed compensation for purposes of computing benefits or contributions under any retirement
plan of the Corporation or its Subsidiaries and shall not affect any benefits under any other
benefit plan of any kind now or subsequently in effect under which the availability or amount of
benefits is related to level of compensation. This Plan is not a “Retirement Plan” or “Welfare
Plan” under the Employee Retirement Income Security Act of 1974, as amended.

     (g)     Unless the Committee determines otherwise, no benefit, Award or other promise under the
Plan shall be secured by any specific assets of the Corporation or any of its Subsidiaries, nor
shall any assets of the Corporation or any of its Subsidiaries be designated as attributable or
allocated to the satisfaction of the Corporation’s obligations under the Plan or any applicable
Award Agreement.

8.     Adjustments

     If there shall occur any recapitalization, stock split (including a stock split in the form of
a stock dividend), reverse stock split, merger, combination, consolidation, or other reorganization
or any extraordinary dividend or other extraordinary distribution in respect of the Common Stock
(whether in the form of cash, Common Stock or other property), or any split up, spin off,
extraordinary redemption, or exchange of outstanding Common Stock, or there shall occur any other
similar corporate transaction or event in respect of the Common Stock, or a sale of substantially
all the assets of the Corporation as an entirety, then the Committee shall, in the manner and to
the extent, if any, as it deems appropriate and equitable to the Participants and consistent with
the terms of this Plan, and taking into consideration the effect of the event on the holders of the
Common Stock:

     (a)     proportionately adjust any or all of:

     (1)     the number and type of shares of Common Stock which thereafter may be made the
subject of Awards (including the specific maxima and numbers of shares of Common Stock set
forth elsewhere in this Plan),

     (2)     the number and type of shares of Common Stock, other property or cash subject to
any or all outstanding Awards,

     (3)     the grant, purchase or exercise price, or conversion ratio of any or all
outstanding Awards, or of the Common Stock or other property underlying the Awards,

     (4)     the securities, cash or other property deliverable upon exercise or conversion of
any or all outstanding Awards, or

     (5)     any other terms as are affected by the event; and/or

 

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     (b)     provide for:

     (1)     an appropriate and proportionate cash settlement or distribution, or

     (2)     the substitution or exchange of any or all outstanding Awards, or the cash,
securities or property deliverable on exercise, conversion or vesting of the Awards.

     The Committee shall act prior to an event described in this Section 8 (including at the time
of an Award by means of more specific provisions in the Award Agreement) if deemed necessary or
appropriate to permit the Participant to realize the benefits intended to be conveyed by an Award
in respect of the Common Stock in the case of an event described in this Section 8.

9.     Change in Control

     The Committee may, in the Award Agreement, provide for the effect of a Change in Control (as
defined in the L-3 Communications Holdings, Inc. 2008 Long Term Performance Plan, as amended or
replaced from time to time) on an Award. Such provisions may include, but are not limited to any
one or more of the following with respect to any or all Awards: (i) the specific consequences of a
Change in Control on the Awards; (ii) a reservation of the Committee’s right to determine in its
discretion at any time that there shall be full acceleration or no acceleration of benefits under
the Awards; (iii) that only certain or limited benefits under the Awards shall be accelerated; (iv)
that the Awards shall be accelerated for a limited time only; or (v) that acceleration of the
Awards shall be subject to additional conditions precedent (such as a termination of employment
following a Change in Control).

     In addition to any action required or authorized by the terms of an Award, the Committee may
take any other action it deems appropriate to ensure the equitable treatment of Participants in the
event of or in anticipation of a Change in Control, including but not limited to any one or more of
the following with respect to any or all Awards: (i) the acceleration or extension of time periods
for purposes of exercising, vesting in, or realizing gain from, the Awards; (ii) the waiver of
conditions on the Awards that were imposed for the benefit of the Corporation, (iii) provision for
the cash settlement of the Awards for their equivalent cash value, as determined by the Committee,
as of the date of the Change in Control; or (iv) such other modification or adjustment to the
Awards as the Committee deems appropriate to maintain and protect the rights and interests of
Participants upon or following the Change in Control. The Committee also may accord any
Participant a right to refuse any acceleration of exercisability, vesting or benefits, whether
pursuant to the Award Agreement or otherwise, in such circumstances as the Committee may approve.

     Notwithstanding the foregoing provisions of this Section 9 or any provision in an Award
Agreement to the contrary, if any Award is accelerated to a date that is less than six months after
the date of the Award, the Committee may prohibit a sale of the underlying Common Stock (other than
a sale by operation of law in exchange for or through conversion into other securities), and the
Corporation may impose legend and other restrictions on the Common Stock to enforce this
prohibition.

 

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10.     Amendment and Termination

     (a)     The Committee shall have the authority to make such amendments to any terms and conditions
applicable to outstanding Awards as are consistent with this Plan; provided that, except for
adjustments under Section 8 hereof, no such action shall modify any such Award in a manner adverse
to the Participant without the Participant’s consent; provided further that, no amendment or
cancellation of an Award may effect a Repricing of such Award, except in connection with an
adjustment pursuant to Sections 8 or 9. A “Repricing” means any of the following: (i) changing the
terms of an Award to lower its exercise price or base price, (ii) cancelling an Award with an
exercise price or base price in exchange for other Awards with a lower exercise price or base
price, or (iii) cancelling an Award with an exercise price or base price at a time when such price
is equal to or greater than the Fair Market Value of the underlying Common Stock in exchange for
other Awards, cash or property.

     (b)     The Board of Directors may at any time amend, suspend or terminate this Plan, subject to
any stockholder approval that may be required under applicable law. Notwithstanding the foregoing,
no such action, other than an action under Section 8 or 9 hereof, may be taken that would modify an
outstanding Award in a manner adverse to the Participant without the Particpant’s consent, change
the requirements relating to the Committee, or (without obtaining stockholder approval) extend the
term of the Plan.

11.     Purchase or Exercise Price; Withholding

     The exercise or purchase price (if any) of the Common Stock issuable pursuant to any Award and
the withholding obligation, if any, under applicable tax laws shall be paid at or prior to the time
of the delivery of such Common Stock in cash or, subject to the Committee’s express authorization
and the restrictions, conditions and procedures as the Committee may impose, any one or combination
of (i) cash, (ii) the delivery of shares of Common Stock, or (iii) a reduction in the amount of
Common Stock or other amounts otherwise issuable or payable pursuant to such Award. In the case of
a payment by the means described in clause (ii) or (iii) above, the Common Stock to be so delivered
or offset shall be determined by reference to the Fair Market Value of the Common Stock on the date
as of which the payment or offset is made.

12.     Effective Date; Duration

     This Plan has been adopted by the Board of Directors of the Corporation. This Plan shall
become effective upon and shall be subject to the approval of the stockholders of the Corporation.
Subject to Section 10(b), this Plan shall remain in effect until any and all Awards under this Plan
have been exercised, converted or terminated under the terms of this Plan and applicable Award
Agreements. Notwithstanding the foregoing, no Award may be granted under this Plan after April 29,
2018; provided, however, that any Award granted prior to such date may be amended after such date
in any manner that would have been permitted hereunder prior to such date.

13.     Governing Law

     The validity, interpretation, construction and performance of this Plan and all Award
Agreements hereunder shall be governed by, and construed in accordance with, the laws of the
State of New York.

 

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14.     Severability

     If any provisions of this Plan or any applicable Award Agreement shall be held by a court of
competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall
continue to be fully effective.

15.     Section 409A

     Notwithstanding other provisions of the Plan or any Award Agreements thereunder, no Award
shall be granted, deferred, accelerated, extended, paid out or modified under this Plan in a manner
that would result in the imposition of an additional tax under Section 409A of the Code upon a
Participant. In the event that it is reasonably determined by the Board or Committee that, as a
result of Section 409A of the Code, payments in respect of any Award under the Plan may not be made
at the time contemplated by the terms of the Plan or the relevant Award agreement, as the case may
be, without causing the Participant holding such Award to be subject to taxation under Section 409A
of the Code, the Company will make such payment on the first day that would not result in the
Participant incurring any tax liability under Section 409A of the Code.

16.     Option Holding Period

     Subject to the authority of the Committee under Sections 8 and 9, and except as otherwise
provided by the Committee or as allowed under Rule 16b-3 of the Exchange Act, a minimum six month
period shall elapse between the date of initial grant of any Option and the sale of the underlying
shares of Common Stock, and the Corporation may impose legend and other restrictions on the Common
Stock issued on exercise of the Options to enforce this requirement; provided, however, that such
limitation shall not apply to the extent provided by the Committee on account of the Participant’s
death, permanent disability or retirement or in the event of a Change in Control.

17.     Compliance with Laws; Exculpation and Indemnity

     This Plan, Award Agreements, and the grant, exercise, conversion, operation and vesting of
Awards, and the issuance and delivery of shares of Common Stock and/or other securities or property
or the payment of cash under this Plan, Awards or Award Agreements, are subject to compliance with
all applicable federal and state laws, rules and regulations (including but not limited to state
and federal insider trading, registration, reporting and other securities laws and federal margin
requirements) and to such approvals by any listing, regulatory or governmental authority as may be
necessary or, in the opinion of counsel for the Corporation, advisable in connection therewith.
Any securities delivered under this Plan shall be subject to such restrictions (and the person
acquiring such securities shall, if requested by the Corporation, provide such evidence, assurance
and representations to the Corporation as to compliance with any of such restrictions) as the
Corporation may deem necessary or desirable to assure compliance with all applicable legal
requirements.

 

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     Neither the Corporation nor any member of the Board of Directors or of the Committee, nor any
other person participating in any determination of any question under this Plan, or in the
interpretation, administration or application of this Plan, shall have any liability to any party
for any action taken or not taken in good faith under this Plan or for the failure of an Award (or
action in respect of an Award) to realize intended tax consequences, to qualify for exemption or
relief under Rule 16b-3 or to comply with any other law, compliance with which is not required on
the part of the Corporation.

18.     Non Exclusivity of Plan

     Nothing in this Plan shall limit or be deemed to limit the authority of the Corporation, the
Board or the Committee to grant awards or authorize any other compensation, with or without
reference to the Common Stock, under any other plan or authority.

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