Document:

exv10w32

Exhibit 10.32

EXELIS INC.

2011 OMNIBUS INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

Non-Employee Director

NOTICE OF
RESTRICTED STOCK UNIT AWARD

Exelis Inc. (the “Company”) grants to the Director named below, in accordance with the terms of the
Exelis Inc. 2011 Omnibus Incentive Plan (the “Plan”) and this Restricted Stock Unit award
agreement (this “Agreement”), the number of Restricted Stock Units (the “Restricted Stock Units” or
the “Award”) provided as follows:

	 	 	 	 	 

	DIRECTOR	 	[Non-Employee Director Name]
	RESTRICTED STOCK UNITS GRANTED

	 	[   ]	 	 
	DATE OF GRANT

	 	[Month, Day, Year]	 
	VESTING SCHEDULE	 	Except as provided in Section 3 of this
Agreement, the Restricted Stock Units will
vest on the following date(s), subject to the
Director’s continued service as a director of
the Company:
	 
	 	 	 	 
	 

	 	Vesting Date(s)
	 	Restricted

Stock Units

Vesting
	 

	 	the Business Day 

immediately prior 

to the Exelis Inc.

[Year] Annual 

Meeting.
	 	100% of
Award

AGREEMENT

	 	1.	 	Grant of Award. The Company hereby grants to the Director the Restricted Stock
Units, subject to the terms, definitions and provisions of the Plan and this Agreement.
All terms, provisions, and conditions applicable to the Restricted Stock Units set forth in
the Plan and not set forth herein are incorporated by reference. To the extent any
provision hereof is inconsistent with a provision of the Plan the provisions of the Plan
will govern. All capitalized terms that are used in this Agreement and not otherwise
defined herein shall have the meanings ascribed to them in the Plan.
	 
	 	2.	 	Vesting and Settlement of Award.

	 	a.	 	Right to Award. This Award shall vest in accordance with the
vesting schedule set forth above (the “Vesting Schedule”) and with the applicable
provisions of the Plan and this Agreement.

 

 

	 	b.	 	Settlement of Award. Except as otherwise provided in a
deferral agreement duly executed by the Director on a form prescribed by the
Company for such elections and timely filed with the Company, the vested portion of
this Award shall be settled (and any related dividend equivalents shall be paid) on
or as soon as practicable following the vesting date set forth in the Vesting
Schedule or in Section 3 of this Agreement, as the case may be.
	 
	 	 	 	The Company may require the Director to furnish or execute such documents as the
Company shall reasonably deem necessary (i) to evidence such settlement and (ii) to
comply with or satisfy the requirements of the Securities Act of 1933, as amended,
the Exchange Act or any applicable laws. If the Director dies before the settlement
of all or a portion of the Award, the vested but unsettled portion of the Award may
be settled by delivery of Shares (and payment of related dividend equivalents) to
the Participant’s designated beneficiary or, if no such beneficiary has been
designated, the Participant’s estate.
	 
	 	c.	 	Method of Settlement. The Company shall deliver to the
Director one Share for each vested Restricted Stock Unit in book entry form.
	 
	 	d.	 	Dividend Equivalents. If a cash dividend is declared on the
Shares, the Director shall be credited with a dividend equivalent in an amount of
cash equal to the number of Restricted Stock Units held by the Director as of the
dividend payment date, multiplied by the amount of the cash dividend paid per
Share. Any such dividend equivalents shall be paid if and when the underlying
Restricted Stock Units are settled. Dividend equivalents shall not accrue
interest.

	 	3.	 	Separation from Service. The Award shall become 100% vested prior to the
vesting date set forth in the Vesting Schedule above upon the Director’s separation from
service for any of the following reasons:

	 	a.	 	the Director’s death;
	 
	 	b.	 	the Director’s Disability (as defined below);
	 
	 	c.	 	the Director’s retirement from the Board at or after age 72; or
	 
	 	d.	 	the Director’s separation from service on account of the acceptance by
the Director of a position (other than an honorary position) in the government of
the United States, any State or any municipality or any subdivision thereof or any
organization performing any quasi-governmental function.

	 	 	 	If the Director’s service on the Board terminates for any reason other than one listed above
prior to the vesting date set forth in the Vesting Schedule above (other than in connection
with the Director’s commencement of services as a director of a Spinco), the Award shall be
forfeited immediately with respect to the number of Restricted Stock Units for which the
Award is not yet vested.
	 
	 	 	 	For purposes of this Agreement, the term “Disability” means the complete and permanent
inability of the Director to perform all of his or her duties as a member of the Board, as

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	 	 	 	determined by the Committee upon the basis of such evidence, including independent medical
reports and data, as the Committee deems appropriate or necessary.

	 	4.	 	Transferability of Award.
	 
	 	 	 	The Award may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated.

	 	5.	 	Miscellaneous Provisions.

	 	a.	 	Rights as a Stockholder. The Director shall have no rights as
a stockholder with respect to any Shares subject to this Award, except as provided
in Paragraph 2(d), until the Award has vested and Shares, if any, have been issued.
	 
	 	b.	 	Compliance with Federal Securities Laws and Other Applicable
Laws. Notwithstanding anything to contrary in this Agreement or in the Plan,
to the extent permitted by Section 409A of the Code and any treasury regulations or
other applicable guidance promulgated with respect thereto, the issuance or
delivery of any Shares pursuant to this Agreement may be delayed if the Company
reasonably anticipates that the issuance or delivery of the Shares will violate
Federal securities laws or other applicable law; provided that delivery or issuance
of the Shares shall be made at the earliest date at which the Company reasonably
anticipates that such delivery or issuance will not cause a violation. The Company
shall not be liable to the Director for any damages relating to any delays in
issuing the certificates to the Director, any loss of the certificates, or any
mistakes or errors in the issuance of the certificates or the certificates
themselves.
	 
	 	c.	 	Choice of Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York, excluding any
conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of this Agreement to the substantive law of another
jurisdiction.
	 
	 	d.	 	Modification or Amendment. This Agreement may only be modified
or amended by written agreement executed by the parties hereto; provided, however,
that the adjustments permitted pursuant to Section 4.2 of the Plan may be made
without such written agreement.
	 
	 	e.	 	Severability. In the event any provision of this Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining provisions of this Agreement, and this Agreement shall be
construed and enforced as if such illegal or invalid provision had not been
included.
	 
	 	f.	 	References to Plan. All references to the Plan shall be deemed
references to the Plan as may be amended from time to time.
	 
	 	g.	 	Headings. The captions used in this Agreement are inserted for
convenience and shall not be deemed a part of this Award for construction or
interpretation.

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	 	h.	 	Interpretation. Any dispute regarding the interpretation of
this Agreement shall be submitted by the Director or by the Company forthwith to
the Committee, which shall review such dispute at its next regular meeting. If the
Director is a member of the Committee, the Director shall not participate in such
review. The resolution of such dispute by the Committee shall be final and binding
on all persons.
	 
	 	i.	 	Section 409A of the Code. The provisions of this Agreement and
any payments made herein are intended to comply with, and should be interpreted
consistent with, the requirements of Section 409A of the Code, and any related
regulations or other effective guidance promulgated thereunder by the U.S.
Department of the Treasury or the Internal Revenue Service.
	 
	 	j.	 	Signature in Counterparts. This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

Exelis Inc.

Date:
[Month, Day, Year]

The Director represents that s/he is familiar with the terms and provisions
thereof, and hereby accepts this Agreement subject to all of the terms and provisions
thereof. The Director has reviewed the Plan and this Agreement in their entirety, has
had an opportunity to obtain the advice of counsel prior to executing this Agreement and
fully understands all provisions of this Agreement. The Director 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.

Signed:____________________

                Director

(Online acceptance constitutes agreement)

Dated:_________________________

4exv10w33

Exhibit 10.33

DIRECTOR’S INDEMNIFICATION AGREEMENT

          THIS AGREEMENT is made as of _______ between Exelis Inc. an Indiana corporation (the
“Corporation”), and __________________ (the “Indemnitee”).

WITNESSETH THAT:

          WHEREAS, it is in the Corporation’s best interest to attract and retain capable directors;

          WHEREAS, both the Corporation and the Indemnitee recognize the increased risk of litigation
and other claims being asserted against directors of public corporations in today’s environment;

          WHEREAS, it is now and has always been the policy of the Corporation to indemnify the members
of its Board of Directors so as to provide them with the maximum possible protection available in
accordance with applicable law;

          WHEREAS, Article 4 of the Corporation’s Amended and Restated By-laws (“By-laws”) and
applicable law expressly recognize that the right of indemnification provided therein shall not be
exclusive of any other rights to which any indemnified person may otherwise be entitled; and

          WHEREAS, the Corporation’s By-laws, its Amended and Restated Articles of Incorporation
(“Articles of Incorporation”) and applicable law permit contracts between the Corporation
and the members of its Board of Directors covering indemnification;

          NOW, THEREFORE, the parties hereto agree as follows:

          1. Indemnity. In consideration of the Indemnitee’s agreement to serve or continue to serve
as a Director of the Corporation, or, at the request of the Corporation, as a director, officer,
employee, fiduciary or agent of another corporation, partnership, limited liability company, joint
venture, trust or other enterprise, whether for profit or not, and including, without limitation,
any employee benefit plan (a “Designated Director”), if Indemnitee was or is made or is threatened
to be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened,
pending or completed investigation, claim, action, suit, arbitration, alternate dispute resolution
mechanism or proceeding (brought in the right of the Corporation or otherwise), whether civil,
criminal, administrative or investigative (including, without limitation, any internal corporate
investigation), whether formal or informal, and including all appeals thereto (a “Proceeding”), the
Corporation hereby agrees to hold the Indemnitee harmless and to indemnify the Indemnitee to the
fullest extent now or hereafter permitted by applicable law from and against any and all expenses
(which term shall be broadly construed and include, without limitation, all direct and indirect
costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and
related disbursements, appeal bonds, other out-of-pocket costs) (“Expenses”), judgments, fines,
amounts paid in settlement (with such judgments, fines or amounts including, without limitation,
all direct and indirect payments of any type or nature
whatsoever, as well as any penalties or excise taxes assessed on a person with respect to
an employee benefit plan), liabilities or losses actually and reasonably incurred by the Indemnitee

 

 

by reason of the fact such person is or was a Director of the Corporation or a Designated Director,
or by reason of any actual or alleged action or omission to act taken or omitted in any such
capacity.

          2. Maintenance of Insurance
(a) Subject only to the provisions of Section 2(c) hereof, the Corporation hereby agrees
that, so long as the Indemnitee shall continue to serve as a Director of the Corporation, and
thereafter so long as the Indemnitee shall be entitled to indemnification hereunder, the
Corporation will provide insurance coverage comparable to that presently provided and at least as
favorable to Indemnitee as the insurance coverage provided to any other director or officer of the
Corporation under the Corporation’s Directors’ and Officers’ Liability Insurance policies (the
“insurance policies”) in effect at the date hereof.

          (b) At the time the Corporation receives notice from Indemnitee, or is otherwise aware, of a
Proceeding, the Corporation shall give prompt notice to the insurers in accordance with the
procedures set forth in the insurance policies. The Corporation shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts
payable as a result of such proceeding in accordance with the terms of such insurance policy.

          (c) However, the Corporation shall not be required to maintain all or any of such insurance
policies or comparable insurance coverage if, in the business judgment of the Board of Directors of
the Corporation, (i) the premium cost for such insurance is substantially disproportionate to the
amount of coverage, or (ii) the coverage provided by such insurance is so limited by exclusions
that there is insufficient benefit from such insurance or (iii) such insurance is otherwise not
reasonably available.

          (d) In the event of any payment by the Corporation under this Agreement, the Corporation shall
be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with
respect to any insurance policy. Indemnitee shall execute all papers required and take all action
necessary to secure such rights, including execution of such documents as are necessary to enable
the Corporation to bring suit to enforce such rights in accordance with the terms of such insurance
policy. The Corporation shall pay or reimburse all expenses actually and reasonably incurred by
Indemnitee in connection with such subrogation.

          (e) The Corporation shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually
received such payment under this Agreement or any insurance policy, contract, agreement or
otherwise.

          3. Additional Indemnity. Subject only to the exclusions set forth in Section 4 hereof, the Corporation hereby
further agrees to hold harmless and indemnify the Indemnitee:

          (a) to the fullest extent provided under Article 4 of the Corporation’s By-laws as in effect
at the date hereof; and

          (b) in the event the Corporation does not maintain in effect the insurance coverage provided
under Section 2 hereof, to the fullest extent of the coverage which would

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otherwise have been
provided for the benefit of the Indemnitee pursuant to the insurance policies in effect at the date
hereof.

          4. Limitations on Additional Indemnity. No indemnity pursuant to Section 3 hereof shall be paid by the Corporation:

          (a) except to the extent the aggregate of losses to be indemnified thereunder exceed the
amount of such losses for which the Indemnitee is indemnified or insured pursuant to either Section
1 or 2 hereof;

          (b) in respect of remuneration paid to, or indemnification of, the Indemnitee, if it shall be
determined by a final judgment or other final adjudication that such remuneration or
indemnification was or is prohibited by applicable law;

          (c) for any transaction from which the Indemnitee derived an improper personal benefit;

          (d) for any breach of the Indemnitee’s duty to act in good faith and (i) in the case of
conduct in the Indemnitee’s official capacity with the Corporation, in a manner he or she
reasonably believed to be in the best interests of the Corporation, (ii) in all other cases, that
the Indemnitee reasonably believed his or her conducts conduct was at least not opposed to the
Corporation’s best interests and (iii) in the case of any criminal proceeding, the Indemnitee had
reasonable cause to believe his or her conduct was lawful or had no reasonable cause to believe
that his or her conduct was unlawful; or

          (e) in respect of acts or omissions which involve intentional misconduct or a knowing
violation of law by the Indemnitee.

          5. Continuation of Indemnity. All agreements and obligations of the Corporation contained herein shall continue during
the period the Indemnitee is a Director of the Corporation and shall continue thereafter so long as
the Indemnitee may be made or threatened to be made a party to, or be otherwise involved in, as a
witness or otherwise, any Proceeding, by reason of the fact that the Indemnitee was a Director of
the Corporation or a Designated Director, or by reason of any action alleged to have been taken or
omitted in any such capacity.

          6. Notification and Defense of Claim.

          (a) Promptly after receipt by the Indemnitee of notice of the commencement of any Proceeding,
the Indemnitee shall, if a claim in respect thereof is to be made against the Corporation under
this Agreement, notify the Secretary of the Corporation in writing of the commencement thereof and
shall provide the Secretary with such documentation and information as is reasonably available to
Indemnitee and reasonably necessary to determine whether and to what extent the Indemnitee is
entitled to indemnification; but an omission to so promptly notify the Corporation will not relieve
it from any liability which it may have to the Indemnitee (i) under this Agreement, except to the
extent the Corporation is actually and materially prejudiced in its defense of such Proceeding or
(ii) otherwise than under this
Agreement, including, without limitation, its liability to indemnify the Indemnitee under the
Corporation’s By-laws.

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	 	(b)	 	With respect to any such Proceeding:
	 
	 	(1)	 	the Corporation shall be entitled to participate therein at its
own expense;
	 
	 	(2)	 	except as otherwise provided below, to the extent that it may
wish, the Corporation jointly with any other indemnifying party shall be
entitled to assume the defense thereof, with counsel reasonably satisfactory to
the Indemnitee. After notice from the Corporation to the Indemnitee of its
election so to assume the defense thereof and approval by the Indemnitee of
such counsel (which approval shall not be unreasonably withheld), the
Corporation will not be liable to the Indemnitee under this Agreement for any
legal or other expenses subsequently incurred by the Indemnitee for separate
counsel in connection with the defense thereof other than reasonable costs of
investigation or as otherwise provided below. The Indemnitee shall have the
right to employ its counsel in such action, suit or proceeding but the fees and
expenses of such counsel incurred after notice from the Corporation of its
assumption of the defense thereof shall be at the expense of the Indemnitee
unless (i) the employment of such counsel by the Indemnitee has been authorized
by the Corporation, (ii) the Indemnitee shall have reasonably concluded (with
written notice to the Corporation setting forth the basis for such conclusion)
that there may be a conflict of interest between the Corporation and the
Indemnitee in the conduct of the defense of such Proceeding, or (iii) the
Corporation shall not in fact have employed counsel to assume the defense of
such Proceeding, in each of which cases the fees and expenses of counsel shall
be at the expense of the Corporation. The Corporation shall not be entitled to
assume the defense of any action, suit or proceeding brought by or on behalf of
the Corporation or as to which the Indemnitee shall have made the conclusion
provided for in (ii) above; and
	 
	 	(3)	 	the Corporation shall not be liable to indemnify the Indemnitee
under this Agreement for any amounts paid in settlement of any Proceeding
effected without the Corporation’s written consent. The Corporation shall not
settle any Proceeding in any manner that would impose any penalty, obligation
or limitation on the Indemnitee without the Indemnitee’s written consent.
Neither the Corporation nor the Indemnitee will unreasonably withhold their
consent to any proposed settlement.

      (c) Except as otherwise required by applicable law, the determination of the Indemnitee’s
entitlement to indemnification shall be made pursuant to and in accordance with the procedures set
forth in the By-Laws in effect as of the date hereof, or any such procedures that may be more
favorable to the Indemnitee that are set forth in the By-Laws in effect on the date Indemnitee
provides the Secretary notice of the request for indemnification.

          7. Advancement and Repayment of Expenses. Upon receipt by the Corporation of a statement
from the Indemnitee requesting advancement or repayment of any Expenses incurred in connection with
any Proceeding involving the Indemnitee, all such

4

 

Expenses shall be paid promptly (and in any event within twenty (20) days of receipt of such
statement, which statement shall reasonably evidence the Expenses incurred or to be incurred) by
the Corporation in advance of the final disposition of such Proceeding. The Indemnitee agrees that
the Indemnitee will reimburse (without interest) the Corporation for all reasonable Expenses
advanced, paid or incurred by the Corporation on behalf of the Indemnitee in respect of a claim
against the Corporation under this Agreement in the event and only to the extent that it shall be
ultimately and finally determined that the Indemnitee is not entitled to be indemnified by the
Corporation for such Expenses under the provisions of applicable law, the Corporation’s Articles of
Incorporation or By-laws, this Agreement or otherwise. The Corporation’s obligations to advance
Expenses under this Section 7 shall not be subject to any conditions or requirements not contained
in this Section.

          8. Nonexclusivity. The provisions for indemnification and advancement and reimbursement
of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which
Indemnitee may have under any provision of law, in any court in which a proceeding is brought, the
Corporation’s Articles of Incorporation or By-laws, other agreements or otherwise, and Indemnitee’s
rights hereunder shall inure to the benefit of the heirs, executors and administrators of
Indemnitee. No amendment or alteration of the Corporation’s Articles of Incorporation or By-laws
or another agreement shall adversely affect the rights provided to Indemnitee under this Agreement.
To the extent that a change in Indiana or other law, whether by statute or judicial decision,
permits greater indemnification or payment than would be afforded currently under the Corporation’s
Articles of Incorporation, By-laws or this Agreement, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.

          9. Enforcement. If a claim under this Agreement is not paid in full by the Corporation
within ninety days after a written request has been received by the Corporation, the Indemnitee may
at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim
and, if successful in whole or in part, the Indemnitee shall also be entitled to be indemnified for
all expenses actually and reasonably incurred by the Indemnitee in connection with the prosecution
of such claim. Nothing in this Section 11 is intended to limit the Corporation’s obligations with
respect to the advancement or repayment of expenses to Indemnitee in connection with any such
action, suit or proceeding instituted by Indemnitee to enforce or interpret this Agreement.

          10. Severability. If any provision of this Agreement shall be held to be or shall, in
fact, be invalid, inoperative or unenforceable as applied to any particular case or in any
particular jurisdiction, for any reason, such circumstances shall not have the effect of rendering
the provision in question invalid, inoperative or unenforceable in any other distinguishable case
or jurisdiction, or of rendering any other provision or provisions herein contained invalid,
inoperative or unenforceable to any extent whatsoever. The invalidity, inoperability or
unenforceability of any one or more phrases, sentences, clauses or Sections contained in this
Agreement shall not affect any other remaining part of this Agreement.

          11. Governing Law; Binding Effect; Amendment or Termination (a) This Agreement shall be
governed by and interpreted in accordance with the laws of the State of Indiana.

5

 

          (b) This Agreement shall be binding upon the Indemnitee and upon the Corporation and its
successors and assigns, and shall inure to the benefit of the Indemnitee and his or her heirs,
personal representatives, executors and administrators, and to the benefit of the Corporation and
its successors and assigns.

          (c) This Agreement constitutes the entire agreement between the parties hereto with respect to
the matters covered hereby, and any other prior oral or written understandings or agreements with
respect to the matters covered hereby are expressly superseded by this Agreement, except to the
extent any such prior agreement may be more favorable to the Indemnitee than the provisions
hereunder.

          (d) No amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both parties hereto.

[Signature Page Follows]

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          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	Exelis Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	[Director’s Name] 	 
	 	 	 	 
	 

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