Document:

nuva-ex103_265.htm

Exhibit 10.3

NUVASIVE, INC.

AMENDED AND RESTATED EXECUTIVE SEVERANCE PLAN

I.INTRODUCTION

NuVasive, Inc. (“NuVasive” or the “Company”) hereby adopts the Amended and Restated NuVasive, Inc. Executive Severance Plan and Summary Plan Description as set forth herein (the “Plan”), to provide severance benefits to eligible executives of NuVasive whose employment is terminated involuntarily under certain circumstances.  The Plan is effective as of July 26, 2017, and supersedes any and all other severance plans, policies or practices and all prior versions of this Plan.  All benefit determinations under the Plan and interpretation of Plan provisions will be made by NuVasive (or its designee) in its sole discretion as Plan Administrator.  The Plan is described in further detail below.

II.ELIGIBILITY

Any NuVasive executive  who (1) was employed by NuVasive in a position designated by the Company at a level of Band 11 or Band 12 on June 1, 2017, and is working in such a position at the time of termination of employment, or (2) is working in a position designated by the Company at a level of Band 13 or above (hereinafter referred to as “executive”), and whose employment is involuntarily terminated by the Company is eligible for severance benefits described in Section III of this Plan, PROVIDED each of the following requirements is met:

A.The termination of employment is involuntary. 

With respect to the Chief Executive Officer of NuVasive as of the effective date of this Plan, if such officer terminates his employment within ninety (90) days after the Board of Directors of NuVasive (the “Board”) fails to nominate him for election as a member of the Board, the termination of his employment shall be treated as involuntary.

B.The termination is not due to retirement, death or disability of the executive.

C.The termination of employment is not for “cause”.  For purposes of the Plan, “cause” shall mean the following:

1.executive’s repeated failure to satisfactorily perform executive’s job duties;

2.refusal or failure to follow the lawful directions of executive’s direct supervisor, the Company’s Chief Executive Officer or the Board, as applicable;

3.conviction of a crime involving moral turpitude; or

4.engaging in acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of the executive with respect to his/her obligations or otherwise relating to the business of NuVasive, its affiliates or customers.

With respect to the Chief Executive Officer of NuVasive as of the effective date of this Plan, such officer must be provided a period of at least sixty (60) days following receipt of written notice outlining with specificity all facts or omissions that the Company alleges give rise to a termination for cause pursuant to Section II, C.1 or C.2 above, during which period he may effect a cure of any curable actions or omissions forming the basis for the termination for cause.

NuVasive, as Plan Administrator, will, in its sole discretion, determine if a termination of employment is for “cause”.

D.The executive is not a temporary employee or a new hire who has not yet started to work on a regular, full-time or part-time basis (as applicable).

 

 

E.The executive is not covered under any other severance-type plan, policy, arrangement or agreement that provides severance benefits more favorable in the aggregate to those provided herein.  If any such plan, policy, arrangement or agreement exists, the executive will receive payments and benefits pursuant to that plan, policy, arrangement or agreement and shall not receive any of the severance benefits described herein.  In no case will the executive receive severance benefits under any other such severance-type plan, policy, arrangement or agreement and this Plan.  

F.In the event that an executive is party to a Change in Control Agreement with NuVasive that also provides for severance benefits upon a termination of employment in connection with  a “Change in Control” (as defined therein), the executive shall not receive benefits under this Plan as a result of such termination of employment, but instead shall receive only the severance benefits provided under such Change in Control Agreement (i.e., there shall be no “double-dipping and only the Change in Control Agreement shall apply in such an event).

G.The executive has not agreed in writing to waive severance benefits under this Plan or otherwise payable from NuVasive.

H.The executive (or, in the event of the executive’s death or incapacity, the executive’s executor, representative or guardian, as applicable) signs a separation agreement which includes post-termination restrictive covenants, clawback provisions, and a general release of all claims, all in such form and with such provisions as the Company may from time-to-time require (“Separation Agreement”), and the Separation Agreement is not revoked and becomes effective no later than sixtieth (60th) day following the executive’s termination of employment. The terms and conditions of the Separation Agreement are hereby incorporated into and shall be part of the Plan.

I.The executive has returned all NuVasive property and equipment that was assigned to, or taken general control of by, her or him during his or her tenure with NuVasive.

A terminated executive must satisfy all of the requirements set forth above and comply with the restrictive covenants in the Separation Agreement in order to receive and retain severance benefits under the Plan.  Eligibility to receive and retain severance benefits under the Plan will be determined by NuVasive.  NuVasive has full power and authority to interpret the provisions of the Plan, including the Separation Agreement which is part of the Plan, and render all decisions on Plan benefits.  

III.SEVERANCE BENEFITS

A.Severance Pay and Benefits.  The following severance pay and benefits are payable under this Plan:

1)Severance Pay.  The severance pay provided to an eligible involuntarily terminated executive under this Plan consists of: 

(a) for the Chief Executive Officer, an aggregate amount equal to the sum of (i) two times (2x) the sum of (x) his or her regular annual base salary and (y) his or her target annual cash incentive bonus in effect for calendar year in which the involuntary termination of employment occurs plus (ii) an  amount equal to the after-tax cost of health benefits for a period of two (2) years from the date of termination of employment, which aggregate amount shall be paid in substantially equal installments over a period of two (2) years in accordance with the Company’s regular payroll practices; and

(b) for any eligible executive other than the Chief Executive Officer, an aggregate amount equal to the sum of (i) one times (1x) his or her regular annual base salary plus (ii) an amount equal to the after-tax cost of health benefits for a period of one (1) year from the date of termination of employment, which aggregate amount shall be paid in substantially equal installments over a period of one (1) year in accordance with the Company’s regular payroll practices.   

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The amount of severance pay to an eligible executive shall be based upon the executive’s regular annual base salary in effect immediately before executive’s termination of employment, determined without regard to any overtime, bonuses, fringe benefits, reimbursements or other irregular payments.  The executive’s general release of all claims in the Separation Agreement must be effective on or before the sixtieth (60th) day following the executive’s termination of employment in order for executive to receive any severance pay or benefits under the Plan.  Severance pay installments will commence on the sixtieth (60th) day following the executive’s termination of employment (or as soon as administratively practicable after such sixtieth (60th) day).    

2)Annual Cash Incentive Bonus.  A pro-rated amount (measuring the number of days from January 1st to the date of involuntary termination of employment as the numerator and 365 as the denominator) of the annual cash incentive bonus for the year in which the involuntary termination of employment occurs, determined based on actual performance for relevant performance period for the Chief Executive Officer and determined based on the lesser of target or actual performance for relevant performance period for each other executive, which amount shall be paid in a lump sum cash payment no later than the fifteenth (15th) day of the third (3rd) calendar month following the end of the performance period.

3)Outplacement Services.  NuVasive will provide outplacement assistance through a designated service provider to eligible executives.  At the time of applicable severance, NuVasive will present the eligible executive with the outplacement assistance option(s) available under NuVasive’s customary coverage arrangements and the eligible executive can choose which of the option(s) he or she will elect to enlist, if any.  In no event shall an eligible executive receive cash or other severance benefits in lieu of outplacement assistance.   

4)After-tax Cost of Health Benefits.  The after-tax cost of health benefits for purposes of Section III.A.1) of this Plan shall be an amount equal to (a) 229.56% multiplied by (b) the total cost of the projected premiums for group medical, dental and vision insurance coverage (the “Health Benefits”) for the applicable period following termination of employment specified in Section III.A.1), based on the projected premium rates for such period for continuation coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), determined, in all cases, as of the date of the termination of employment (i) based on the NuVasive plans in which the executive participates and the level of the executive’s health benefits coverage as of immediately preceding the date of termination of employment, and (ii) assuming, to the extent applicable, an increase of four percent (4%) in the applicable COBRA premium rates at the beginning of each calendar year during the applicable period following termination of employment specified in Section III.A.1), from those in effect as of the end of the previous calendar year.

B.No Separate Fund.  All severance benefits payable under the Plan are payable from NuVasive’s general assets.  There is no separate trust or fund established for the payment of severance benefits under the Plan.  All amounts shall be less all appropriate deductions, including federal, state and local withholding taxes.

C.Additional Benefits.  NuVasive reserves the right to pay benefits in addition to those required by the Plan based on special circumstances.  Any exception will be considered unique and shall not be precedent-setting.  Payment of additional amounts or provision of additional benefits will be subject to such terms and conditions as NuVasive may determine.  Any and all such determinations shall be made by NuVasive in its sole and absolute discretion.

D.Section 409A.  

1.It is the intent of this Plan that the payments and benefits provided are exempt from or comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and should be interpreted and construed in such a manner.

2.“Termination of employment”, “resignation”, “separation from service”, or correlative phrases or terms, as used in this Plan means, for purposes of any payments under this Plan have the same meaning as “separation from service” as defined in Section 409A of the Code.  

3.If a payment obligation under this Plan arises on account of the executive’s separation from service while the executive is a “specified employee” (as defined under section 409A of the Code and 

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determined in good faith by the Compensation Committee), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall accrue with interest and shall be paid within 15 days after the end of the six-month period beginning on the date of such separation from service or, if earlier, within 15 days after the appointment of the personal representative or executor of the executive’s estate following his or her death.  For purposes of the preceding sentence, interest shall accrue at the six (6)-month Libor rate.

4.Each payment and benefit payable under this Plan, and each other benefit required to be aggregated with the payment and benefits under this Plan pursuant to section 409A of the Code, is hereby designated as a separate payment, as provided in Treasury Regulation Section 1.409A-2(b)(2)(iii), and will not collectively be treated as a single payment.

IV.CLAIMS PROCEDURE

Severance benefits under this Plan will automatically be paid to executives who qualify for such benefits.  An executive who believes that he or she is entitled to severance benefits under this Plan that have not been provided must file a written claim with NuVasive’s Human Resources Department within 120 days of the date on which he or she believes such severance benefits should have commenced, or if benefits have commenced and are terminated, within 120 days of the date on which benefits terminated.  If the claim is denied, NuVasive shall provide written notice of such denial to the petitioning executive within 90 days (180 days if additional processing time is required) of its initial receipt of the claim.  Such notice will include an explanation of the factors on which the denial is based (including specific reasons for the denial and specific references to Plan provisions) and what, if any, additional information is needed to support the claim or to request a review of the decision.  Further review of the claim and access to relevant Plan information may be obtained by filing a written request for review with the Human Resources Department within 90 days of receiving the denial.  The decision on review will be made no later than 60 days (120 days if additional processing time is required) after the request for review is received and shall contain an explanation of the right to file suit under ERISA Section 502(a) with respect to a claim denied upon such review.

V.STATEMENT OF RIGHTS ERISA

The Plan is an employee benefit plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).  The following statement is required by ERISA:

ERISA provides that all employees who may become eligible for benefits under the Plan shall be entitled to:

	
 
	
A.
	
Examine, without charge, at NuVasive’s offices all documents relating to the Plan.

	
 
	
B.
	
Obtain copies of all documents relating to the Plan upon written request.  A reasonable charge may be imposed for the copies.

In addition to creating rights for employees, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  These people, called “fiduciaries” of the plan, have a duty to act prudently and in the interest of all employees.  No one, including NuVasive, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.  If your claim for a benefit is denied in whole or in part, you must receive a written explanation of the reason for the denial.  You have the right to have NuVasive review and reconsider your claim.  Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request materials from NuVasive and do not receive them within 30 days, you may file a suit in federal court and the court may require NuVasive to provide the materials and pay you a penalty of up to $110 per day until you receive the materials, unless the materials were not sent because of reasons beyond the control of NuVasive.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court.  If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.  If you have any questions about the Plan, you should contact 

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NuVasive (Human Resources).  If you have any questions about this statement or about your rights under ERISA, you should contact the nearest Area Office of the Employee Benefits Security Administration, U.S. Department of Labor listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, NW, Washington, D.C.  20210.

VI.AMENDMENT AND TERMINATION

NuVasive, by action of its Board or Compensation Committee of the Board, reserves the right to terminate or amend the Plan at any time and in any manner in its sole discretion.  No executive shall have any vested interest in severance benefits payable under this Plan prior to satisfying all of the terms and conditions for payment of benefits under this Plan.

VII.EMPLOYMENT RIGHTS

Nothing in this Plan shall have any effect on NuVasive’s right to terminate an executive, with or without cause, at any time (subject to the terms of any written employment contract between the executive and NuVasive).  The payment of severance benefits under this Plan does not extend an executive’s term of employment.

VIII.NON-ALIENATION OF BENEFITS

No benefit under the Plan may be assigned, transferred, pledged as security for indebtedness or otherwise encumbered by any eligible executive or subject to any legal process for the payment of any claim against an eligible executive.

IX.GOVERNING LAW

This Plan shall be governed by and construed in accordance with the laws of the State of California to the extent such laws are not preempted by ERISA.

5Exhibit 10.1

 

L3 TECHNOLOGIES, INC.

AMENDED AND RESTATED

2008 LONG TERM PERFORMANCE PLAN

RESTRICTED STOCK UNIT AGREEMENT

(Director Award Version 0004)

This Restricted Stock Unit Agreement (this “Agreement”), effective as of the Grant Date (as defined below), is between L3 Technologies, 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)          “Change in Control” means:

(1)          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;

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

(3)          The consummation of a merger, combination, consolidation, recapitalization, or other reorganization of the Corporation with one or more other entities that are not subsidiaries if, as a result of the consummation of the merger, combination, consolidation, recapitalization or other reorganization, less than 50 percent of the outstanding voting securities of the surviving or resulting corporation shall immediately after the event be beneficially owned in the aggregate by the stockholders of the Corporation immediately prior to the event; or

(4)          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.

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

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

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

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(f)          “Restricted Period” shall mean the period beginning on the Grant Date and expiring on the earlier of (i) the date on which the Participant ceases to be a director of the Corporation or (ii) the occurrence of a Change in Control that constitutes a Section 409A Change in Control Event.

(g)          “Restricted Units” shall mean that number of restricted units listed in the Award Letter as “Awards Granted,” as the same may be adjusted from time to time in accordance with the terms hereof.

(h)          “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.

(i)          “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.

(j)          “Specified Employee” shall mean a “specified employee” as defined in Treasury Regulation Section 1.490A-1(i).

(k)          “Vesting Date” shall mean the earliest of: (a) the first anniversary of the Grant Date (or if earlier, the date of the Corporation’s first regular annual meeting of stockholders held after the Grant Date), (b) the termination of the Participant’s service as a director of the Corporation by reason of death or permanent disability or (c) the occurrence of a Change in Control (without regard to whether such event constitutes a Section 409A Change in Control Event).

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 of the Restricted Period, subject the terms, conditions and restrictions set forth in the L3 Technologies, Inc. Amended and Restated 2008 Directors Stock Incentive Plan (as amended from time to time, 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.          Nonalienation of Benefits.  No Participant or beneficiary shall have the power or right to transfer, anticipate, or otherwise encumber the Participant’s interest under this Agreement.  The provisions of this Agreement shall inure to the benefit of the Participant and the Participant’s beneficiaries, heirs, executors, administrators or successors in interest.

5.          Vesting; Forfeiture.  Notwithstanding anything in this agreement to the contrary, the Participant shall forfeit the Restricted Units and all of the Participants rights hereunder shall cease (unless otherwise provided for by the Committee in accordance with the Plan) in the event that either: (a) the Restricted Period expires prior to the Vesting Date or (b) the Participant is removed as director of the Corporation for cause.

6.          Dividend Equivalents.  If the Corporation pays a cash dividend or distribution on its Common Stock, the Participant’s Unit Account shall be credited as of the payment date with an additional number of Restricted Units equal to the following calculation: (i) the amount payable per share of Common Stock outstanding as of record date of the dividend or distribution, multiplied by (ii) the number of Restricted Units credited to the Participant’s Unit Account as of the record date for the dividend or distribution, divided by (iii) the Fair Market Value (as defined in the Plan) of a share of Common Stock as of the payment date.

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7.          No Right to Continue as a Director.   Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the Participant any right to continue as a director of the Corporation, nor shall this Agreement or the Plan interfere in any way with the right of the Corporation or its directors or stockholders to remove the Participant as a director in accordance with the by-laws of the Corporation.

8.          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 11.

9.          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).

10.          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.

11.          Issuance of Shares.  Upon the expiration of the Restricted Period and subject to Sections 5 and 10 and payment by the Participant of any applicable withholding taxes, the Corporation shall, as soon as reasonably practicable (and in any event within 75 days of the expiration of the Restricted Period), issue the Shares to the Participant, free and clear of all restrictions; provided, that if the expiration 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; provided further, that in the event the Participant is a Specified Employee and the expiration of the Restricted Period does not result from the death of the Participant or a Section 409A Change in Control Event, then notwithstanding the foregoing, the Shares shall be issued as soon as reasonably practicable following (and not prior to) the date that is six months after the expiration of the Restricted Period (and in any event within 75 days after such date).  The Corporation shall not be required to deliver any fractional Shares, and may pay, in lieu thereof, the Fair Market Value (as defined in the Plan) thereof as of the date on which the Shares first become issuable under this Section.  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.

12.          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.

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13.          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.

14.          Modification of Agreement.  This Agreement may be not be modified, amended, suspended or terminated, and any terms or conditions may not be waived, without the approval of the Committee.  The Committee reserves the right to amend or modify this Agreement at any time without prior notice to any Participant or other interested party; provided, that except as expressly provided hereunder, any such amendment or modification may not adversely affect in any material respect the Participant’s rights or benefits hereunder except for such amendments or modifications as are required by law.

15.          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.

16.          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.

17.          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.

18.          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.

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

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20.          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.

21.          Limitation on Rights; No Right to Future Grants.  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; and (e) the future value of the underlying Shares is unknown and cannot be predicted with certainty.

22.          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.

23.          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, 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.

24.          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.

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25.          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:

	
L3 TECHNOLOGIES, INC.

	 	 	 
	 	 	

	 	 	
Michael T. Strianese

	 	 	
Chairman and Chief Executive Officer

	 	 	 
	 	 	 
	 	 	

	 	 	
Ann D. Davidson

	 	 	
Senior Vice President, General Counsel and Corporate Secretary

	 	 	 
	 	 	 
	 	 	 
	
Acknowledged and Agreed as of the date first written above:

	 	 
	 	 	 
	 	 	 
	
Electronic Signature

	 	 
	
Participant Signature

	 	 

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Exhibit A

L3 Technologies, Inc.

Restricted Stock Unit Award Notification Letter

Participant:  Participant Name

Grant Date:  Grant Date

Awards Granted:  Number of Awards Granted Restricted Units

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