Document:

exv10w2

 

Exhibit 10.2

AMENDMENT

dated as of November 16, 2005

	 	 	 	 	 
	MORGAN STANLEY & CO. INTERNATIONAL

	 	and
	 	MAVERICK TUBE CORPORATION
	LIMITED (“MSIL”), represented by MORGAN

	 	 	 	                   (“Maverick”)
	STANLEY BANK (“MSB”) as its agent
	 	 	 	 

have entered into a Transaction evidenced by a Warrants confirmation, dated as of November 9, 2005
(the “Confirmation”). Buyer under the Confirmation wishes to purchase additional Warrants from
Seller thereunder. To effectuate this additional purchase, the parties hereby amend the
Confirmation as set forth in this Amendment (this “Amendment”).

Accordingly, the parties agree as follows:—

1. Amendments

The Confirmation is amended, effective as of the date of this Amendment by:

          (a) increasing the Number of Warrants by 739,218, from 5,420,932 to 6,160,150; and

          (b) designating a second Premium Payment Date of November 18, 2005, on which Buyer will pay to
Seller an additional Premium of USD 7,677,341.34.

Except as provided in this Amendment, all other terms and conditions of the Warrants remain the
same.

2. Representations

Each party hereby repeats on the date hereof the representations made by it in the Confirmation
(with references therein to the “Trade Date” deemed references to the date of this Amendment).
Each party further represents to the other party that:—

(a) Status. It is duly organized and validly existing under the laws of the jurisdiction of its
organization or incorporation and, if relevant under such laws, in good standing;

(b) Powers. It has the power to execute and deliver this Amendment and to perform its obligations
under this Amendment and has taken all necessary action to authorize such execution, delivery and
performance;

(c) No Violation or Conflict. Such execution, delivery and performance do not violate or conflict
with any law applicable to it, any provision of its constitutional documents, any order or judgment
of any court or other agency of government applicable to it or any of its assets or any contractual
restriction binding on or affecting it or any of its assets;

(d) Consents. All governmental and other consents that are required to have been obtained by it
with respect to this Amendment have been obtained and are in full force and effect and all
conditions of any such consents have been complied with;

(e) Obligations Binding. Its obligations under this Amendment constitute its legal, valid and
binding obligations, enforceable in accordance with its respective terms (subject to applicable
bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights
generally and subject, as to enforceability, to equitable principles of general application
(regardless of whether enforcement is sought in a proceeding in equity or at law)); and

 

 

(f) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge, Termination Event (each as defined in the 2002 ISDA Master Agreement referred to in the
Confirmation) with respect to it has occurred and is continuing and no such event or circumstance
would occur as a result of its entering into or performing its obligations under this Amendment.

4. Early Unwind

     In the event the sale of Additional Securities (as defined in the Purchase Agreement (the
“Purchase Agreement”) dated as of November 9, 2005 between Maverick and Morgan Stanley & Co.
Incorporated) is not consummated with the initial purchasers for any reason by the close of
business in New York on the Option Closing Date (as defined in the Purchase Agreement) or such
later date as agreed upon by the parties (the Option Closing Date or such later date as agreed upon
being the “Option Early Unwind Date”), this Amendment shall automatically terminate on the Option
Early Unwind Date (the “Option Early Unwind”), and (i) the amendments to the Confirmation set forth
in Section 1 hereof and all of the respective rights and obligations of MSIL and Maverick in
connection therewith shall be cancelled and terminated and (ii) each party shall be released and
discharged by the other party from and agrees not to make any claim against the other party with
respect to any obligations or liabilities of the other party arising out of and to be performed in
connection with such amendments either prior to or after the Option Early Unwind Date; provided
that if the failure to consummate the sale of the Additional Securities results from a failure of
any condition described in the final paragraph of Section 5 of the Purchase Agreement, Maverick
shall reimburse MSIL for any costs or expenses (including market losses) relating to the unwinding
of its hedging activities in connection with this Amendment (including any loss or cost incurred as
a result of its terminating, liquidating, obtaining or reestablishing any hedge or related trading
position). The amount of any such reimbursement shall be determined by MSIL in its sole good faith
discretion. MSIL shall notify Maverick of such amount, including reasonable detail regarding its
determination of such amount, and Maverick shall pay such amount in immediately available funds on
the Option Early Unwind Date. MSIL and Maverick represent and acknowledge to the other that,
subject to the proviso included in this Section, upon an Option Early Unwind, all obligations with
respect to this Amendment shall be deemed fully and finally discharged.

5. Role of Agent

     The provisions of Section 9(m) of the Confirmation regarding the role of MSB as agent are
incorporated by reference herein.

6. Opinion

     Maverick shall deliver to MSIL an opinion of counsel, dated as of the date of this Amendment,
with respect to the matters identified in Section 9(a) of the Confirmation as applied to this
Amendment.

7. Miscellaneous

(a) Entire Agreement. The Confirmation and this Amendment constitute the entire agreement and
understanding of the parties with respect to its subject matter and supersedes all oral
communication and prior writings with respect thereto.

(b) Amendments. No amendment, modification or waiver in respect of this Amendment will be
effective unless in writing (including a writing evidenced by a facsimile transmission) and
executed by each of the parties.

(c) Counterparts. This Amendment may be executed and delivered in counterparts (including by
facsimile transmission), each of which will be deemed an original.

(d) Headings. The headings used in this Amendment are for convenience of reference only and are
not to affect the construction of or to be taken into consideration in interpreting this Amendment.

(e) Governing Law. This Amendment will be governed by and construed in accordance with the laws of
the State of New York (without reference to choice of law doctrine).

 

 

(f) Agreement Continuation. The Confirmation, as modified herein, shall continue in full force and
effect. All references to the Confirmation in the Confirmation or any document related thereto
shall for all purposes constitute references to the Confirmation as amended hereby.

 

 

IN WITNESS WHEREOF the parties have executed this Amendment with effect from the date specified on
the first page of this Amendment.

	 	 	 	 	 	 	 	 	 	 	 
	MORGAN STANLEY & CO. INTERNATIONAL
LIMITED	 	 	 	MAVERICK TUBE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Authorized Signatory

Name:
	 	 	 	 	 	Authorized Signatory

Name:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	MORGAN STANLEY BANK, as agent	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Authorized Signatory

Name:Exhibit 10.1

 

EXHIBIT 10.1

SUMMARY OF BOARD COMPENSATION

During the year ending January 28, 2006, non-employee directors of Pacific Sunwear of California,
Inc. (the “Company”) receive compensation for their services to the Board of Directors and related
committees as follows:

	 	 	 
	Amount	 	Description
	$20,000

	 	Board member annual retainer, disbursed in five equal payments for
each regularly scheduled Board meeting.
	5,000

	 	Audit committee chairman annual retainer, disbursed in same manner as
Board member annual retainer.
	3,000

	 	Attendance fee for each in-person Board meeting.
	750

	 	Attendance fee for each telephonic Board meeting or committee meeting
of any kind.

On November 16, 2005, the Board of Directors approved the following compensation for non-employee
directors of the Company, effective January 29, 2006.

	 	 	 
	Amount	 	Description
	$30,000

	 	Board member annual retainer, disbursed in five equal payments for
each regularly scheduled Board meeting.
	10,000

	 	Audit committee chairman annual retainer, disbursed in same manner as
Board member annual retainer.
	5,000

	 	Non-audit committee chairman annual retainer, disbursed in same
manner as Board member annual retainer.
	3,000

	 	Attendance fee for each in-person Board meeting.
	1,250

	 	Attendance fee for each telephonic Board meeting or committee meeting
of any kind.

All directors are and will continue to be reimbursed for expenses incurred in attending meetings of
the Board of Directors. Each non-employee director of the Company currently receives, and will
continue to receive, an annual stock option to purchase 9,000 shares of Company common stock, with
an exercise price equal to the closing market price of the Company’s common stock on the date of
the grant. Greg H. Weaver and Seth R. Johnson, who are executive
officers of the Company, are not and will not
be paid any fees or additional remuneration for their services as members of the Board of
Directors.exv10w1

 

Exhibit 10.1

PERFORMANCE CASH AGREEMENT

ANDREW CORPORATION

MANAGEMENT INCENTIVE PLAN

     THIS AGREEMENT is made as of the                      day of                                          2005 between ANDREW CORPORATION, a Delaware
corporation (the “Company”), and
                                         (the “Participant”).

WITNESSETH:

     WHEREAS, the Company adopted the Andrew Corporation Management Incentive Plan (the “MIP”) for
the purpose of providing performance-based incentives to selected key employees; and

     WHEREAS, the Compensation and Human Resources Committee of the Board of Directors of the
Company (the “Committee”) has granted the Participant a Performance Cash Award under Section 6 of
the MIP;

     NOW THEREFORE, in consideration of these premises, the parties hereto agree as follows:

     1. Award. The Company hereby awards to the Participant a “Performance Cash Award” in
an amount equal to                     % of his/her annual base salary as of the date of payment, subject to
attainment of the Performance Goal set forth in Section 2. This Award shall be subject to the
terms and conditions of the MIP and this Agreement. Unless the context clearly provides otherwise,
the capitalized terms in this Agreement shall have the meaning ascribed to such terms under the
MIP.

     2. Performance Goal and Vesting. Subject to Section 3, the Performance Cash Award
shall vest and become payable if, as of any Measurement Date during the Performance Period, the
Performance Goal has been attained. If the Performance Goal is not attained by the last day of the
Performance Period, no amount shall be payable to any person under this Agreement. For purposes of
this Agreement, the following terms shall have the following meanings:

	 	(a)	 	“Cumulative Free Cash Flow” means the cumulative dollar amount of the
Company’s net operating cash flow less adjusted expenditures during the Performance
Period, as determined in accordance with the Company’s normal accounting practices.

 

 

	 	(b)	 	“Measurement Date” means each of September 30, 2007, September 30, 2008, and
September 30, 2009.
	 
	 	(c)	 	“Performance Goal” means Cumulative Free Cash Flow
of at least $       million.
	 
	 	(d)	 	“Performance Period” means the period beginning October 1, 2005 and ending
September 30, 2009.
	 
	 	(e)	 	“Vesting Date” means the date of the Committee’s first regularly scheduled
meeting following the Measurement Date, if any, at which the Committee certifies that
the Performance Goal under this Section 2 has been attained.

     The Committee, in its sole and absolute discretion, shall determine the extent to which the
Performance Goal has been met and may determine whether and to what extent to exclude extraordinary
or non-recurring items. Further, the Committee may, in its sole discretion, increase or reduce the
amount of the Performance Cash Award; provided, however, in the case of a Covered Employee (as
defined in the MIP), the Committee may reduce but may not increase the amount of the Performance
Cash Award, and may not waive the achievement of the Performance Goal, except as provided in the
case of death or Disability, as described in Section 3(b)(ii) below, or as the Committee may
provide upon certain events, as set forth in the MIP.

	 	3.	 	Termination of Employment Prior to Vesting Date.
	 
	 	(a)	 	Termination of Employment for Reasons other than Death, Disability or
Retirement. If, prior to the Vesting Date, a Participant terminates employment for
any reason other than death, Disability or Retirement the Participant’s Performance
Cash Award shall be forfeited as of such termination date.
	 
	 	(b)	 	Death, Disability or Retirement. If a Participant terminates
employment by reason of death, Disability or Retirement prior to the end of the
Performance Period, and prior to the Vesting Date, then the Participant’s Performance
Cash Award shall not be forfeited. Instead, the Performance Cash Award may vest as
follows:

	 	(i)	 	Upon Retirement of a Participant, the Performance Cash Award
will vest upon the Measurement Date in the Performance Period that the
Performance Goal is attained, if any, and payment shall be made to the
Participant (or his or her designated beneficiary or estate, if applicable) at
the same time Performance Cash Award payments are made to other Participants
for the Performance Period. If the Performance Goal is not attained by the end
of the Performance Period, the Performance Cash Award shall be forfeited. For
purposes of this Agreement, “Retirement” means the termination of a
Participant’s employment with the Company and its affiliates for retirement
purposes if such termination occurs (A) on or after his or her sixty-fifth
birthday; or (B) on or after his or her fifty-fifth birthday with the written
consent of the Chief Executive Officer of

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the Company or, in the case of the
Chief Executive Officer’s retirement, with the consent of the Committee.

	 	(ii)	 	Upon the death or Disability of a Participant, the targeted
Performance Cash Award shall vest as of the date of such death or Disability
(without regard to whether the Performance Goal has been met) and payment shall
be made to the Participant or his or her designated beneficiary or estate, if
applicable. For purposes of this Agreement, “Disability” means that a
Participant is eligible for Social Security disability benefits or disability
benefits under the Company’s long-term disability plan, based upon a
determination by the Committee that the condition arose prior to termination of
employment.

     4. Change in Control. In the event of a Change in Control (as defined below) prior to
the last day of the Performance Period, all outstanding Performance Cash Awards which have not
previously been forfeited or vested shall become fully vested and payable as if the Performance
Goal set forth in Section 2 had been attained as of the date of such Change in Control.

     For purposes of this Agreement, a “Change in Control” means the happening of any of the
following events:

	 	(a)	 	the merger or consolidation of the Company with any other corporation following
which the holders of the Company’s Common Stock immediately prior thereto hold less
than 60% of the outstanding Common Stock of the surviving or resulting entity;
	 
	 	(b)	 	the sale of all or substantially all of the assets of the Company to any person
or entity other than a wholly-owned subsidiary;
	 
	 	(c)	 	any person or group of persons acting in concert, or any entity, becomes the
beneficial owner, directly or indirectly, of more than 20% of the Company’s outstanding
Common Stock, other than an acquisition of more than 20%, in one or more transactions,
of the Company’s outstanding Common Stock by (i) a passive institutional investor where
such investor is eligible pursuant to Rule 13d-1(b) of the Securities Exchange Act of
1934 (the “Exchange Act”) to, and does, file a report of ownership on Schedule 13G with
the Securities and Exchange Commission, (ii) a trustee or other fiduciary of an
employee benefit plan maintained by the Company, or (iii) a corporation owned directly
or indirectly by the stockholders of the Company in substantially the same proportions
as their ownership of the Company;
	 
	 	(d)	 	those individuals who, as of the close of the most recent annual meeting of the
Company’s stockholders, are members of the Board (the “Existing Directors”) cease for
any reason to constitute more than 50% of the Board. For purposes of the foregoing, a
new director will be considered an Existing Director if the

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election, or nomination for
election by the Company’s stockholders, of such new director was approved by a vote of
a majority of the Existing Directors. No
individual shall be considered an Existing Director if such individual initially
assumed office as a result of either an actual or threatened election contest
subject to Rule 14a-11 under the Exchange Act or other actual or threatened
solicitation of proxies by or on behalf of anyone other than the Board of Directors,
including by reason of any agreement intended to avoid or settle any election proxy
contest; or

	 	(e)	 	the stockholders of the Company adopt a plan of liquidation.

     5. Settlement of Performance Cash Award. The Performance Cash Award shall be settled
as a lump-sum cash payment, or, in the Company’s sole discretion, as shares of Common Stock.

     6. Tax Withholding. This Agreement is subject to all applicable Federal, state, local,
domestic, or foreign withholding taxes. The Company may withhold cash (or Common Stock, if the
Performance Cash Award is paid in such form) in an amount sufficient to satisfy such withholding
requirements. Alternatively, if the Performance Cash Award is paid in the form of Common Stock,
the Company may require the Participant to pay the Company, in cash, an amount sufficient to
satisfy such withholding requirements.

     7. Rights Not Conferred. Nothing contained in the MIP or in this Agreement shall
confer upon the Participant any right with respect to continued employment by the Company or any
affiliate or interfere in any way with the right of the Company to terminate the employment of the
Participant at any time. The Participant shall have none of the rights of a stockholder with
respect to any Performance Cash Award made in the form of Common Stock until such time that shares
of Common Stock are delivered to the Participant in settlement thereof.

     8. Agreement Not Assignable. This Agreement and the Performance Cash Award hereunder
may not be sold, assigned, transferred, pledged or otherwise encumbered by the Participant except
by will or the laws of descent and distribution.

     9. Governing Law. This Agreement shall be construed in accordance with and governed by
the laws of the State of Illinois.

     10. Binding Effect. This Agreement shall be binding upon the heirs, executors,
administrators and successors of the parties hereto.

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

	 	 	 
	Via On-Line Acceptance
	 	 
	 
	 	 
	 

Participant’s Signature

	 	 

	 	 	 	 	 
	ANDREW CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Ralph E. Faison	 	 
	 

	 	President and Chief Executive Officer	 	 
	 

	 	Andrew Corporation	 	 

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