Document:

exv10w10

 

Exhibit 10.10

EXECUTIVE EMPLOYMENT AGREEMENT

     This EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made as of December 13, 2007 between
White Electronic Designs Corporation, an Indiana Corporation (the “Company”) and Hamid R.
Shokrgozar (“Executive”).

     WHEREAS, the Company desires to continue to employ Executive and Executive desires to continue
to be employed by the Company on the terms contained herein;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties agree as follows:

     1. TERM OF EMPLOYMENT. The term of this Agreement shall extend from the date hereof (the
“Commencement Date”) until the third anniversary of the Commencement Date; provided, however, that
the term of this Agreement shall automatically be extended for two additional years upon expiration
of the term hereof and upon expiration of each successive term hereof unless, not less than 90 days
prior to any such expiration, either party shall have given notice to the other that it does not
wish to extend this Agreement. The term of this Agreement shall be subject to termination as
provided in Section 6 and may sometimes be referred to herein as the “Period of Employment.”

     2. POSITION AND DUTIES. During the Period of Employment, Executive shall serve as the
President and Chief Executive Officer and Chairman of the Board of Directors of the Company (the
“Board”), and shall have supervision and control over and responsibility for the business and
affairs of the Company and shall have such other powers and duties as may from time to time be
prescribed by the Board, provided that such duties are consistent with Executive’s position or
other positions that he may hold from time to time. Executive shall devote his full working time
and efforts to the business and affairs of the Company. Notwithstanding the foregoing, Executive
may, with permission of the Board of Directors, serve on other boards of directors, as long as such
activities do not materially interfere with Executive’s performance of his duties to the Company as
provided in this Agreement.

     3. COMPENSATION AND BENEFITS.

          (a) BASE SALARY. Executive’s annual base salary shall be $500,000.00, which shall be
effective beginning on the Commencement Date. Executive’s base salary shall be subject to increase
at the discretion of the Compensation Committee of the Board (the “Compensation Committee”) based
on its annual review. The base salary in effect at any given time is referred to herein as “Base
Salary.” The Base Salary shall be payable in substantially equal bi-weekly installments.

          (b) BONUS. Executive shall be eligible to receive cash incentive compensation equal to up to
100% of his Base Salary (“Bonus”) as determined on an annual basis by the Compensation Committee in
its sole discretion.

 

 

          (c) LIFE INSURANCE. The Company shall at its expense provide Executive with $2,5000,000 of
term life insurance, the death benefits from which shall be payable to one or more beneficiaries
designated by Executive.

          (d) AUTO ALLOWANCE. The Company shall pay to Executive a monthly automobile allowance equal
to $1,000.

          (e) CLUB MEMBERSHIP. The Company shall pay all regular and special membership fees and dues
(including any initiation fees) for Executive’s membership in a club of his choice, but reasonably
acceptable to the Compensation Committee.

          (f) EXPENSES. Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by him in performing services hereunder during the Period of Employment, in
accordance with the policies and procedures then in effect and established by the Company for its
senior executive officers.

          (g) OTHER BENEFITS. During the Period of Employment Executive shall be entitled to continue
to participate in or receive benefits under all of the Company’s Executive Benefit Plans in effect
on the date hereof, or under plans or arrangements that provide Executive with benefits at least
substantially equivalent to those provided under such Executive Benefit Plans. As used herein, the
term “Employee Benefit Plans” includes, without limitation, each savings and profit- sharing plan;
stock option plan; medical insurance plan; dental insurance plan; disability plan; and health and
accident plan or arrangements established and maintained by the Company on the date hereof for
senior executives of the Company. To the extent that the scope or nature of benefits described in
this section is determined under the policies of the Company based in whole or in part on the
seniority or tenure of an employee’s service, Executive shall be deemed to have a tenure with the
Company equal to the actual time of Executive’s service with the Company. During the Period of
Employment, Executive shall be entitled to participate in or receive benefits under any employee
benefit plan or arrangement which may, in the future, be made available by the Company to its
executives subject to and on a basis consistent with the terms, conditions and overall
administration of such plan or arrangement. All benefits to be received by Executive pursuant to
Sections 3(c) — (f), inclusive, under this Agreement shall be made on an aftertax basis, such that
the Company shall compensate Executive for any federal or state tax payable with respect to such
benefit as well as any such tax payable with respect to the compensation called for by this
sentence.

          (h) VACATIONS. Executive shall be entitled to six (6) paid weeks of vacation in each calendar
year. Executive shall also be entitled to all paid holidays given by the Company to its
executives.

     4. CONFIDENTIAL INFORMATION. Executive acknowledges that in the course of his employment with
the Company, he has been allowed to become, and will continue to be allowed to become, acquainted
with the Company’s business affairs, information, trade secrets, and other matters which are of a
proprietary or confidential nature, including but not limited to the Company’s and its affiliates’
operations, business opportunities, price and cost information, finance, customer information,
business plans, various sales techniques, manuals, letters, notebooks, procedures, reports,
products, processes, services, and other confidential information

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and knowledge (collectively the “Confidential Information”) concerning the Company’s and its
affiliates’ business. Executive understands and acknowledges that the Confidential Information is
confidential, and he agrees not to disclose such Confidential Information to anyone outside the
Company except to the extent that (i) Executive deems such disclosure or use reasonably necessary
or appropriate in connection with performing his duties on behalf of the Company; (ii) Executive is
required by order of a court of competent jurisdiction (by subpoena or similar process) to disclose
or discuss any Confidential Information, provided that in such case, Executive shall promptly
inform the Company of such event, shall cooperate with the Company in attempting to obtain a
protective order or to otherwise restrict such disclosure, and shall only disclose Confidential
Information to the minimum extent necessary to comply with any such court order; (iii) such
Confidential Information becomes generally known to and available for use in the Company’s
industry, other than as a result of any action or inaction by Executive; or (iv) such information
has been published in a form generally available to the public prior to the date Executive proposes
to disclose or use such information. Executive agrees this covenant shall survive this Agreement
and continue to be binding upon Executive after the expiration or termination of this Agreement.
Executive further agrees that he will not during employment and/or at any time thereafter use such
Confidential Information in competing, directly or indirectly, with the Company. At such time as
Executive shall cease to be employed by the Company, he will immediately turn over to the Company
all Confidential Information, including papers, documents, writings, electronically stored
information, other property, and all copies of them provided to or created by him during the course
of his employment with the Company.

     5. TERMINATION. Executive’s employment hereunder may be terminated without any breach of this
Agreement under the following circumstances:

          (a) DEATH. Executive’s employment hereunder shall terminate upon his death.

          (b) DISABILITY. If, as a result of Executive’s incapacity due to physical or mental illness,
Executive shall have been absent from his duties hereunder on a full- time basis for one hundred
eighty (180) calendar days in the aggregate in any twelve (12) month period, the Company may
terminate Executive’s employment hereunder.

          (c) TERMINATION BY COMPANY FOR CAUSE. Company may terminate the employment of Executive for
cause at any time upon written notice to Executive specifying the cause for termination. For
purposes of this Section, “for cause” shall mean discharge resulting from a determination by the
Company that the Executive has (i) been convicted of a criminal offense involving dishonesty,
fraud, theft, embezzlement, breach of trust or moral turpitude; (ii) performed an act or failed to
act which, if he were prosecuted and convicted, would constitute a crime or offense involving money
or property of the Company; (iii) violated the provisions of Section 4 pertaining to confidential
information; or (iv) willfully refuses to perform the duties reasonably assigned to Executive and
consistent with his status as President and Chief Executive Officer and Chairman of the Board of
the Company, provided however that this Section 5(c)(iv) shall not apply following a Change in
Control as defined in Section 5(f).

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          (d) TERMINATION BY COMPANY WITHOUT CAUSE. At any time during the Period of Employment, the
Company may terminate Executive’s employment hereunder without Cause if such termination is
approved by a majority of the Board at a meeting of the Board called and held for such purpose.
Any termination by the Company of Executive’s employment under this Agreement which does not
constitute a termination for Cause under Section 5(c) or result from the death or disability of the
Executive under Section 5(a) or (b) shall be deemed a termination without Cause. If the Company
provides notice to Executive under Section 1 that it does not wish to extend the Period of
Employment, such action shall also be deemed a termination without Cause.

          (e) TERMINATION BY EXECUTIVE WITHOUT CAUSE. At any time during the Period of Employment,
Executive may terminate his employment hereunder for any reason. If Executive provides notice to
the Company under Section 1 that he does not wish to extend the Period of Employment, such action
shall be deemed a voluntary termination by Executive.

          (f) TERMINATION OF EXECUTIVE FOLLOWING A CHANGE IN CONTROL. In the event that a Change in
Control occurs when the remaining term of this Agreement is less than eighteen (18) months, then
this Agreement shall be automatically renewed for a period of eighteen (18) months following the
effective date of the Change in Control. For purposes of this Agreement, a “Change in Control”
shall mean: any sale of all or substantially all of the assets of Company; or merger or
consolidation involving Company, unless the stockholders of Company receive in the transaction,
with respect to their stock in Company, stock or other securities representing a majority in voting
interest of the acquiring entity’s equity securities; or any sale of a majority voting interest of
the outstanding stock of Company by the holders thereof in a single transaction or series of
related transactions. For a period of eighteen (18) months following the effective date of a
Change in Control, the Executive may terminate the Agreement by written notice to Company’s Board
of Directors (or its successor) subsequent to the occurrence of any of the following events:

               (i) Notice of termination or a material change in the nature or scope of Executive’s
responsibilities, title, authority, reporting relationship, powers, functions or duties from the
responsibilities, title, authority, reporting relationship, powers, functions or duties exercised
by the Executive immediately prior to the Change in Control;

               (ii) A decrease in the total annual compensation or benefits payable to Executive other than
as a result of a decrease in incentive-based compensation payable to the Executive and to all other
executive officers of Company on the basis of Company’s financial performance;

               (iii) A requirement imposed by Company that Executive relocate to an office that is more than
fifty (50) miles distant from the office at which he is employed or the borne at which he resides
immediately prior to the Change in Control or an increase in Executive’s business travel; or

               (iv) Failure of Company’s successor to assume its obligations hereunder following a Change in
Control.

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          (g) NOTICE OF TERMINATION. Except for termination as specified in Section 5(a), any
termination of Executive’s employment by the Company or any such termination by Executive shall be
communicated by written Notice of Termination to the other party hereto. For purposes of this
Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon.

          (h) DATE OF TERMINATION. “Date of Termination” shall mean: (A) if Executive’s employment is
terminated by his death, the date of his death; (B) if Executive’s employment is terminated on
account of disability under Section 5(b) or by the Company for Cause under Section 5(c), the date
on which Notice of Termination is given; and (C) if Executive’s employment is terminated by the
Company under Section 5(d), or terminated by the Executive under Section 5(e), thirty (30) days
after the date on which a Notice of Termination is given.

     6. COMPENSATION UPON TERMINATION OR DURING DISABILITY.

          (a) DEATH OF EXECUTIVE. If Executive’s employment terminates by reason of his death, the
Company shall, within ninety (90) days of death, pay in a lump sum amount to such person as
Executive shall have most recently designated in a notice filed with the Company or, if no such
person is designated, to Executive’s estate, Executive’s unpaid Base Salary and Pro Rata Bonus (as
defined in Section 6(g) below) to the date of his death. Upon the death of Executive, all unvested
stock options shall immediately vest in Executive’s estate or other legal representatives and
become exercisable, and Executive’s estate or other legal representatives shall have the remaining
option term or twelve months, whichever is longer, to exercise all stock options granted to
Executive. For a period of one (1) year following the Date of Termination, the Company shall pay
such health insurance premiums as may be necessary to allow Executive’s spouse and dependents to
receive health insurance coverage substantially similar to coverage they received prior to the Date
of Termination. Such payments, in the aggregate, shall fully discharge the Company’s obligations
hereunder.

          (b) DISABILITY OF EXECUTIVE. During any period that Executive fails to perform his duties
hereunder as a result of incapacity due to physical or mental illness, Executive shall continue to
receive his Base Salary and Pro Rata Bonus until Executive’s employment is terminated due to
disability in accordance with Section 5(b) or until Executive terminates his employment in
accordance with Section 5(e), whichever first occurs. Following such termination, Executive may
receive benefits under the Company’s long- term disability plan subject to the terms and conditions
thereof. Upon the Date of Termination, all unvested stock options shall immediately vest and become
exercisable and Executive shall have the remaining option term or twelve months, whichever is
longer, to exercise all stock options granted to Executive. For a period of one (1) year following
the Date of Termination, the Company shall pay such health insurance premiums as may be necessary
to allow Executive and Executive’s spouse and dependents to receive health insurance coverage
substantially similar to coverage they received prior to the Date of Termination.

          (c) TERMINATION BY EXECUTIVE WITHOUT CAUSE. If Executive’s employment is terminated by
Executive other than for a Change in Control as provided in Section 5(f), then the Company shall,
through the Date of Termination, pay Executive his unpaid

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Base Salary at the rate in effect at the time Notice of Termination is given. Thereafter, the
Company shall have no further obligations to Executive except as otherwise expressly provided under
this Agreement, provided any such termination shall not adversely affect or alter Executive’s
rights under any employee benefit plan of the Company in which Executive, at the Date of
Termination, has a vested interest, unless otherwise provided in such employee benefit plan or any
agreement or other instrument attendant thereto. In addition, all vested but unexercised stock
options held by executive as of the Date of Termination must be exercised by Executive within
twelve (12) months following the Date of Termination or by the end of the option term, if longer.

          (d) TERMINATION OF EXECUTIVE FOLLOWING A CHANGE IN CONTROL. If Executive terminates his
employment for a Change in Control as provided in Section 5(f), Executive shall be entitled to the
following benefits:

               (i) SEVERANCE PAYMENT. The Company will pay Executive a single, lump sum “Severance Payment”
equal to three (3) times the sum of Executive’s total highest annual Base Salary, and highest
annual Bonus/Incentive Compensation from White Electronic Designs. In the event that any severance
payments made would be subjected to the excise tax imposed by Section 4999 of the Internal Revenue
Code of 1986, as amended, the Company would be required to “gross up” the Executive’s compensation
for excise taxes and any federal, state and local income taxes related to any excise tax imposed.

               (ii) BENEFIT CONTINUATION. The Company will continue benefit contributions (medical, dental,
disability and life) and all compensation benefits set forth in Section 3 hereof for the remaining
term of this agreement, as such term may therefore have been extended in accordance with Section 1
hereof, or eighteen (18) months whichever is greater.

               (iii) STOCK OPTIONS. Upon the Date of the Termination, all unvested stock options, restricted
stock grants and performance shares shall immediately vest and become exercisable and Executive
shall have the remaining option term or eighteen months whichever is greater, to exercise all stock
options granted to the Executive.

               (iv) OUTPLACEMENT ASSISTANCE. The Company will provide executive-level outplacement services
to the Executive at the outplacement provider of his choice for a period not to exceed eighteen
(18) months in the maximum amount of $50,000.

               (v) ATTORNEY FEES. The Company will reimburse Executive for all reasonable attorneys’ fees
incurred in connection with enforcing the terms of this Agreement following termination of
employment in the maximum amount of $50,000.

          (e) TERMINATION FOR CAUSE. If Executive’s employment is terminated by the Company for Cause
as provided in Section 5(c), then the Company shall, through the Date of Termination, pay Executive
his unpaid Base Salary. Thereafter, the Company shall have no further obligations to Executive
except as otherwise expressly provided under this Agreement, provided any such termination shall
not adversely affect or alter Executive’s rights under any employee benefit plan of the Company in
which Executive, at the Date of Termination, has a vested interest, unless otherwise provided in
such employee benefit plan or any agreement or

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other instrument attendant thereto. In addition, all unvested stock options held by Executive
as of the Date of Termination shall immediately terminate and be of no further force and effect.
In addition, all vested but unexercised stock options held by Executive as of the Date of
Termination must be exercised by Executive within six (6) months following the Date of Termination
or by the end of the option term, if earlier.

          (f) PRO RATA BONUS. In determining Executive’s Pro Rata Bonus pursuant to Sections 6(a) or
(b) hereof, the amount shall be equal to the product of (i) a fraction, the numerator of which is
the number of days elapsed in the year Executive’s employment with the Company is terminated and
the denominator is 365, multiplied by (ii) the Bonus paid to Executive with respect to the year
immediately preceding the year in which Executive’s employment with the Company is terminated.

          (g) TERMINATION BY COMPANY WITHOUT CAUSE. If the Company terminates the Executive’s
employment without Cause in accordance with Section 5(d), it shall, upon the termination of
Executive’s employment, pay Executive a Severance Payment equal to two (2) times the sum of
Executive’s total highest annual Base Salary, and highest annual Bonus/Incentive Compensation from
White Electronic Designs, and provide the other benefits set forth in Sections 6(d)(ii) to (v).
The Company shall have no further obligations to Executive except for any amounts earned by, or
accrued for, Executive under any employee benefit plans in which the Executive is then a
participant, earned and unpaid salary and accrued and unused vacation pay and any rights of
Executive under any bonus or stock option agreement, which right has been earned by Executive at
the time of such termination pursuant to the terms of such plan or agreement.

     7. NON-SOLICITATION. Executive agrees, for a period of two years after the expiration or
termination of this Agreement, he will not employ or directly or indirectly solicit, or cause the
solicitation of, any employees of the Company who are in the employ of the Company on the Date of
Termination for employment by others.

     8. NOTICE. For purposes of this Agreement, notices and all other communications provided for
in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or
mailed by United States certified mail, return receipt requested, postage prepaid, addressed as
follows:

     if to the Executive:

At his home address as shown in the Company’s personnel records;

     if to the Company:

White Electronic Designs Corporation, 3601 East University, Phoenix, Arizona 85034,
Attention: Board of Directors or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notices of change of address
shall be effective only upon receipt.

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     9. SUCCESSOR TO COMPANY. The Company shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of the business or
assets of the Company expressly to assume and agree to perform this Agreement to the same extent
that the Company would be required to perform it if no succession had taken place. Failure of the
Company to obtain an assumption of this Agreement at or prior to the effectiveness of any
succession shall be a breach of this Agreement and shall constitute Good Reason if the Executive
elects to terminate employment.

     10. VALIDITY. The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect. The invalid portion of this Agreement, if any, shall
be modified by any court having jurisdiction to the extent necessary to render such portion
enforceable.

     11. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and the same instrument.

     12. ARBITRATION; OTHER DISPUTES. In the event of any dispute or controversy arising under or
in connection with this Agreement, the parties shall first promptly try in good faith to settle
such dispute or controversy by mediation under the applicable rules of the American Arbitration
Association before resorting to arbitration. In the event such dispute or controversy remains
unresolved in whole or in part for a period of thirty (30) days after it arises, the parties will
settle any remaining dispute or controversy exclusively by arbitration in Phoenix, Arizona in
accordance with the rules of the American Arbitration Association then in effect. Judgment may be
entered on the arbitrator’s award in any court having jurisdiction. Notwithstanding the above, the
Company shall be entitled to seek a restraining order or injunction in any court of competent
jurisdiction to prevent any continuation of any violation of Section 4 hereof. Furthermore, should
a dispute occur concerning Executive’s mental or physical capacity as described in Section 5(b) or
6(b), a doctor selected by Executive and a doctor selected by the Company shall be entitled to
examine Executive. If the opinion of the Company’s doctor and Executive’s doctor conflict, the
Company’s doctor and Executive’s doctor shall together agree upon a third doctor, whose opinion
shall be binding.

     13. THIRD-PARTY AGREEMENTS AND RIGHTS. Executive represents to the Company that Executive’s
execution of this Agreement, Executive’s employment with the Company and the performance of
Executive’s proposed duties for the Company will not violate any obligations Executive may have to
any employer or other party, and Executive will not bring to the premises of the Company any copies
or other tangible embodiments of non-public information belonging to or obtained from any such
previous employment or other party.

     14. LITIGATION AND REGULATORY COOPERATION. During and after Executive’s employment, Executive
shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions
now in existence or which may be brought in the future against or on behalf of the Company which
relate to events or occurrences that transpired while Executive was employed by the Company;
provided, however, that such cooperation shall not materially and adversely affect Executive or
expose Executive to an increased probability of civil

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or criminal litigation. Executive’s cooperation in connection with such claims or actions
shall include, but not be limited to, being available to meet with counsel to prepare for discovery
or trial and to act as a witness on behalf of the Company at mutually convenient times. During and
after Executive’s employment, Executive also shall cooperate fully with the Company in connection
with any investigation or review of any federal, state or local regulatory authority as any such
investigation or review relates to events or occurrences that transpired while Executive was
employed by the Company. The Company shall also provide Executive with compensation on an hourly
basis (to be derived based on his Base Salary in effect at the Date of Termination) for requested
litigation and regulatory cooperation that occurs after his termination of employment, and
reimburse Executive for all costs and expenses incurred in connection with his performance under
this Section 14, including, but not limited to, reasonable attorneys’ fees and costs.

     15. MISCELLANEOUS. No provisions of this Agreement may be modified, waived, or discharged
unless such waiver, modification, or discharge is agreed to in writing and signed by Executive and
such officer of the Company as may be specifically designated by the Board. No waiver by either
party hereto of any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or representations, oral or otherwise, express or implied,
unless specifically referred to herein, with respect to the subject matter hereof have been made by
either party which are not set forth expressly in this Agreement. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of the State of
Arizona (without regard to principles of conflicts of laws).

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year
first above written.

	 	 	 
	WHITE ELECTRONIC DESIGNS CORPORATION.
	 

	 	 
	 
	 	 
	BY: Paul Quadros
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	CHAIRMAN OF COMPENSATION COMMITTEE White Electronic Design Corporation
	 
	 	 
	EXECUTIVE
	 
	 	 
	 
	 	 
	 

Hamid R. Shokrgozar

	 	 

9exv10w19

 

EXHIBIT 10.19

FORM OF RESTRICTED STOCK UNITS AWARD AGREEMENT

WHITE ELECTRONIC DESIGNS CORPORATION

1994 FLEXIBLE STOCK PLAN

(Form of Time Based Award)

     White Electronic Designs Corporation (“Company”), hereby grants to [___] (“Grantee”),
a Participant in the White Electronic Designs Corporation 1994 Flexible Stock Plan (“Plan”), as
amended, a Restricted Stock Units Award (“Award”) for Units (“Units”) representing shares of the
Company’s Common Stock (“Stock”). The grant is made effective as of the [___] day of [___]
(“Grant Date”).

     A. The Board of Directors of the Company (“Board”) has adopted the Plan as an incentive to
retain key employees, officers and consultants of, or certain individuals who otherwise have an
affiliation with, the Company and to enhance the ability of the Company to attract such individuals
whose services are considered unusually valuable by providing an opportunity for them to have a
proprietary interest in the success of the Company.

     B. The Board has approved the granting of Units to the Grantee pursuant to Article XVII of the
Plan to provide an incentive to the Grantee to focus on the long-term growth of the Company.

     C. To the extent not specifically defined in this Restricted Stock Units Award Agreement
(“Agreement”), all capitalized terms used in this Agreement shall have the meaning set forth in the
Plan.

     In consideration of the mutual covenants and conditions hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and the Grantee agree as follows:

     1. Grant of Units. Grantee is hereby granted a Restricted Stock Units Award for
[___] Units, representing the right to receive the same number of shares of the Company’s
Stock, subject to the terms and conditions in this Agreement. This Award is granted pursuant to
the Plan and its terms are incorporated by reference.

     2. Vesting of Units. The Units will vest in accordance with the following schedule:

	 	 	 
	Number of RSUs Vested	 	Vesting Date
	[___]

	 	[___] Anniversary of Grant Date
	[___]

	 	[___] Anniversary of Grant Date

     Notwithstanding the above, the Units will vest 100% upon the occurrence of a Change of
Control as defined in the Plan.

 

 

     3. Termination of Employment. If the Grantee terminates employment with the Company
for any reason, any Units that are not vested under the schedule in 2 above will be canceled and
forfeited as of the date of termination of employment. For purposes of this Agreement, the phrase
“Termination of Employment” means the termination of the Grantee’s employment with the Company and
all affiliates due to death, retirement or other reasons. The Grantee’s employment relationship is
treated as continuing while the Grantee is on military leave, sick leave, or other bona fide leave
of absence (if the period of such leave does not exceed six months, or if longer, so long as the
Grantee’s right to reemployment with the Company or an affiliate is provided either by statute or
contract). If the Grantee’s period of leave exceeds six months and the Grantee’s right to
reemployment is not provided either by statute or by contract, the employment relationship is
deemed to terminate on the first day immediately following the expiration of such six-month period.
Whether a termination of employment has occurred will be determined based on all of the facts and
circumstances and in accordance with regulations issued under Code Section 409A.

     4. Time and Form of Payment. Subject to the provisions of the Agreement and the Plan,
as the number of Units vest under 2 above, the Company will deliver to the Grantee within ten
business days from the date of vesting, the same number of whole shares of Stock. It is the
Company’s intention that the payments made pursuant to this Agreement shall qualify for the
“short-term deferral” exception from Code Section 409A as set forth in Treasury Regulations Section
1.409A-1(b)(4).

     5. Nontransferability. The Units granted by this Agreement shall not be transferable
by the Grantee or any other person claiming through the Grantee, either voluntarily or
involuntarily, except by will or the laws of descent and distribution or as otherwise provided by
the Plan’s Committee.

     6. Adjustments. In the event of a stock dividend or in the event the Stock shall be
changed into or exchanged for a different number or class of shares of stock of the Company or of
another corporation, whether through reorganization, recapitalization, stock split-up, combination
of shares, merger or consolidation, there shall be substituted for each such remaining share of
Stock then subject to this Agreement the number and class of shares of stock into which each
outstanding share of Stock shall be so exchanged, all as set forth in Section 3.3 of the Plan.

     7. Delivery of Shares. No shares of Stock shall be delivered under this Agreement
until (i) the Units vest in accordance with the schedule set forth in 2 above; (ii) approval of any
governmental authority required in connection with the Agreement, or the issuance of shares
hereunder, has been received by the Company; (iii) if required by the Committee, the Grantee has
delivered to the Company documentation (in form and content acceptable to the Company in its sole
and absolute discretion) to assist the Company in concluding that the issuance to the Grantee of
any share of Stock under this Agreement would not violate the Securities Act of 1933 or any other
applicable federal or state securities laws or regulations; and (iv) the Grantee has complied with
13 below of this Agreement in order for the proper provision for required tax withholdings to be
made.

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     8. Securities Act. The Company shall not be required to deliver any shares of Stock
pursuant to the vesting of Units if, in the opinion of counsel for the Company, such issuance would
violate the Securities Act of 1933 or any other applicable federal or state securities laws or
regulations.

     9. Voting and Other Stockholder Related Rights. The Grantee will have no voting
rights or any other rights as a stockholder of the Company (e.g., no rights to cash dividends) with
respect to nonvested Units until the Units become vested and the Company issues shares of Stock to
the Grantee.

     10. Copy of Plan. By the execution of this Agreement, the Grantee acknowledges
receipt of a copy of the Plan.

     11. Administration. This Agreement shall at all times be subject to the terms and
conditions of the Plan and the Plan shall in all respects be administered by the Committee in
accordance with the terms of and as provided in the Plan. The Committee shall have the sole and
complete discretion with respect to all matters reserved to it by the Plan and decisions of the
majority of the Committee with respect thereto and to this Agreement shall be final and binding
upon the Grantee and the Company. In the event of any conflict between the terms and conditions of
this Agreement and the Plan, the provisions of the Plan shall control.

     12. Continuation of Employment. This Agreement shall not be construed to confer upon
the Grantee any right to continue employment with the Company and shall not limit the right of the
Company, in its sole and absolute discretion, to terminate Grantee’s employment at any time.

     13. Tax Withholding. Unless otherwise provided by the Committee prior to the vesting
of shares as set forth in the next sentence, the Grantee shall satisfy any federal, state, local or
foreign employment or income taxes due upon the vesting of the Units (or otherwise) by having the
Company withhold from those shares of Stock that the Grantee would otherwise be entitled to
receive, a number of shares having a Fair Market Value equal to the minimum statutory amount
necessary to satisfy the Company’s applicable federal, state, local and foreign income and
employment tax withholding obligation. In lieu of, and subject to, the above, the Committee may
also permit the Grantee to satisfy any federal, state, local, or foreign employment or income taxes
due upon the vesting of shares of the Units (or otherwise) by (i) personal check or other cash
equivalent acceptable to the Company, (ii) permitting the Grantee to execute a same day sale of
Stock pursuant to procedures approved by the Company, or (iii) such other method as approved by the
Committee, all in accordance with applicable Company policies and procedures and applicable law.

     14. Governing Law. This Agreement shall be interpreted and administered under the
laws of the State of Indiana.

     15. Amendments. This Agreement may be amended only by a written agreement executed by
the Company and the Grantee.

3

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized
representative and the Grantee has signed this Agreement as of the date first written above.

	 	 	 	 	 
	 	WHITE ELECTRONIC DESIGNS CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 

4

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