Document:

EX-4.15

Exhibit 4.15

SUPPLEMENTAL INDENTURE TO BE DELIVERED

BY GUARANTEEING SUBSIDIARIES

     Supplemental Indenture (this “Supplemental Indenture”), dated as of February 20, 2009, among
L-3 Communications Holdings, Inc. (or its permitted successor), a Delaware corporation (the
“Company”), each a direct or indirect subsidiary of the Company signatory hereto (each, a
“Guaranteeing Subsidiary”, and collectively, the “Guaranteeing Subsidiaries”), and The Bank of New
York Mellon (formerly known as The Bank of New York), as trustee under the indenture referred to below (the “Trustee”).

W I T N E S S E T H

          WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of July 29, 2005 providing for the issuance of up to $700,000,000 of 3.0%
Convertible Contingent Debt Securities (CODES) due 2035 (the “CODES”);

          WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiaries
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiaries shall unconditionally guarantee all of the Company’s Obligations (as
defined in the Indenture) under the CODES and the Indenture on the terms and conditions set forth
herein (the “Subsidiary Guarantee”); and

          WHEREAS, pursuant to the Indenture, the parties hereto are authorized to execute and deliver
this Supplemental Indenture and the Trustee has determined that this Supplemental Indenture is in
form satisfactory to it.

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiaries and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the CODES
as follows:

          1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

          2. AGREEMENT TO GUARANTEE. Each Guaranteeing Subsidiary hereby agrees as follows:

	 	(a)	 	Such Guaranteeing Subsidiary, jointly and
severally with all other current and future guarantors of the CODES
(collectively, the “Guarantors” and each, a “Guarantor”),
unconditionally guarantees to each Holder of a CODE authenticated and
delivered by the Trustee and to the Trustee and its successors and
assigns, regardless of the validity and enforceability of the
Indenture, the CODES or the Obligations of the Company under the
Indenture or the CODES, that:

	 	(i)	 	the principal of and interest
(including Contingent Interest and Additional Interest, if
any) on the CODES will be promptly paid in full when due,
whether at maturity, by acceleration, redemption or otherwise,
and interest on the overdue principal of and interest
(including Contingent Interest and Additional Interest, if
any) on the CODES, to the extent lawful, and all other
Obligations of the Company to the Holders or the Trustee
thereunder or under the Indenture will be promptly paid in
full, all in accordance with the terms thereof; and

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	 	(ii)	 	in case of any extension of
time for payment or renewal of any CODES or any of such other
Obligations, that the same will be promptly paid in full when
due in accordance with the terms of the extension or renewal,
whether at stated maturity, by acceleration or otherwise.

	 	(b)	 	Notwithstanding the foregoing, in the event
that this Subsidiary Guarantee would constitute or result in a
violation of any applicable fraudulent conveyance or similar law of any
relevant jurisdiction, the liability of such Guaranteeing Subsidiary
under this Supplemental Indenture and its Subsidiary Guarantee shall be
reduced to the maximum amount permissible under such fraudulent
conveyance or similar law.

          3. EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEES.

	 	(a)	 	To evidence its Subsidiary Guarantee set forth
in this Supplemental Indenture, such Guaranteeing Subsidiary hereby
agrees that a notation of such Subsidiary Guarantee substantially in
the form of Exhibit A to the Indenture shall be endorsed by an Officer
of such Guaranteeing Subsidiary on each CODE authenticated and
delivered by the Trustee after the date hereof.
	 
	 	(b)	 	Notwithstanding the foregoing, such
Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set
forth herein shall remain in full force and effect notwithstanding any
failure to endorse on each CODE a notation of such Subsidiary
Guarantee.
	 
	 	(c)	 	If an Officer whose signature is on this
Supplemental Indenture or on the Subsidiary Guarantee no longer holds
that office at the time the Trustee authenticates the CODE on which a
Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be
valid nevertheless.
	 
	 	(d)	 	The delivery of any CODE by the Trustee, after
the authentication thereof under the Indenture, shall constitute due
delivery of the Subsidiary Guarantee set forth in this Supplemental
Indenture on behalf of each Guaranteeing Subsidiary.
	 
	 	(e)	 	Each Guaranteeing Subsidiary hereby agrees that
its Obligations hereunder shall, to the extent permitted by applicable
law, be unconditional, regardless of the validity, regularity or
enforceability of the CODES or the Indenture, the absence of any action
to enforce the same, any waiver or consent by any Holder of the CODES
with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company, any action to enforce the same or any
other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor.
	 
	 	(f)	 	Each Guaranteeing Subsidiary, to the extent
permitted by applicable law, hereby waives diligence, presentment,
demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that its

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	 	 	 	Subsidiary Guarantee made pursuant to this Supplemental Indenture
will not be discharged except by complete performance of the
Obligations contained in the CODES and the Indenture.

	 	(g)	 	If any Holder or the Trustee is required by any
court or otherwise to return to the Company or any Guaranteeing
Subsidiary, or any Custodian, Trustee, liquidator or other similar
official acting in relation to either the Company or such Guaranteeing
Subsidiary, any amount paid by either to the Trustee or such Holder,
the Subsidiary Guarantee made pursuant to this Supplemental Indenture,
to the extent theretofore discharged, shall be reinstated in full force
and effect.
	 
	 	(h)	 	Each Guaranteeing Subsidiary agrees that it
shall not be entitled to any right of subrogation in relation to the
Holders in respect of any Obligations guaranteed hereby until payment
in full of all Obligations guaranteed hereby. Each Guaranteeing
Subsidiary further agrees that, as between such Guaranteeing
Subsidiary, on the one hand, and the Holders and the Trustee, on the
other hand:

	 	(i)	 	the maturity of the
Obligations guaranteed hereby may be accelerated as provided
in Article 4 of the Indenture for the purposes of the
Subsidiary Guarantee made pursuant to this Supplemental
Indenture, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the
Obligations guaranteed hereby;
	 
	 	(ii)	 	in the event of any
declaration of acceleration of such Obligations as provided in
Article 4 of the Indenture, such Obligations (whether or not
due and payable) shall forthwith become due and payable by
such Guaranteeing Subsidiary for the purpose of the Subsidiary
Guarantee made pursuant to this Supplemental Indenture; and
	 
	 	(iii)	 	Each Guaranteeing Subsidiary
shall have the right to seek contribution from any other
non-paying Guaranteeing Subsidiary so long as the exercise of
such right does not impair the rights of the Holders or the
Trustee under the Subsidiary Guarantee made pursuant to this
Supplemental Indenture.

          4. GUARANTEEING SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

	 	(a)	 	Except as set forth in Articles 6 and 9 of the
Indenture, nothing contained in the Indenture, this Supplemental
Indenture or in the CODES shall prevent (i) any consolidation or merger
of any Guaranteeing Subsidiary with or into the Company or any other
Guarantor, (ii) any transfer, sale or conveyance of the property of any
Guaranteeing Subsidiary as an entirety or substantially as an entirety,
to the Company or any other Guarantor or (iii) any merger of a
Guarantor with or into with an Affiliate of that Guarantor that has not
significant assets or liabilities and was incorporated solely for the
purpose of reincorporating such Guarantor in another State of the
United States so long as the amount of

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	 	 	 	Indebtedness of the Company and the domestic non-Guarantor
subsidiaries is not increased thereby.

	 	(b)	 	Except as set forth in Article 9 of the
Indenture, nothing contained in the Indenture, this Supplemental
Indenture or in the CODES shall prevent any consolidation or merger of
any Guaranteeing Subsidiary with or into any Person organized under the
laws of the United States of America, any state thereof, the District
of Columbia or any territory thereof other than the Company or any
other Guarantor (in each case, whether or not affiliated with the
Guaranteeing Subsidiary), or successive consolidations or mergers in
which a Guaranteeing Subsidiary or its successor or successors shall be
a party or parties, or shall prevent any sale or conveyance of the
property of any Guaranteeing Subsidiary as an entirety or substantially
as an entirety, to any Person organized under the laws of the United
States of America, any state thereof, the District of Columbia or any
territory thereof other than the Company or any other Guarantor (in
each case, whether or not affiliated with the Guaranteeing Subsidiary)
authorized to acquire and operate the same; provided, however, that
each Guaranteeing Subsidiary hereby covenants and agrees that (i)
subject to the Indenture, upon any such consolidation, merger, sale or
conveyance, the due and punctual performance and observance of all of
the covenants and conditions of the Indenture and this Supplemental
Indenture to be performed by such Guaranteeing Subsidiaries, shall be
expressly assumed (in the event that such Guaranteeing Subsidiary is
not the surviving corporation in the merger), by supplemental indenture
satisfactory in form to the Trustee, executed and delivered to the
Trustee, by any Person formed by such consolidation, or into which such
Guaranteeing Subsidiary shall have been merged, or by any Person which
shall have acquired such property, (ii) immediately after giving effect
to such consolidation, merger, sale or conveyance no Default or Event
of Default exists and (iii) such transaction will only be permitted
under the Indenture if it would be permitted under the terms of all of
the indentures governing the Outstanding Senior Subordinated Notes as
the same are in effect on the date of the Indenture (whether or not
those indentures are subsequently amended, waived, modified or
terminated or expire and whether or not any of these notes continue to
be outstanding).
	 
	 	(c)	 	In case of any such consolidation, merger, sale
or conveyance and upon the assumption by the successor corporation, by
supplemental indenture, executed and delivered to the Trustee and
satisfactory in form to the Trustee, of the Subsidiary Guarantee made
pursuant to this Supplemental Indenture and the due and punctual
performance of all of the covenants and conditions of the Indenture and
this Supplemental Indenture to be performed by such Guaranteeing
Subsidiary, such successor Person shall succeed to and be substituted
for such Guaranteeing Subsidiary with the same effect as if it had been
named herein as the Guaranteeing Subsidiary. Such successor Person
thereupon may cause to be signed any or all of the Subsidiary
Guarantees to be endorsed upon the CODES issuable under the Indenture
which theretofore shall not have been signed by the Company and
delivered to the Trustee. All the Subsidiary Guarantees so issued shall
in all respects have the same legal rank and

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	 	 	 	benefit under the Indenture and this Supplemental Indenture as the
Subsidiary Guarantees theretofore and thereafter issued in accordance
with the terms of the Indenture and this Supplemental Indenture as
though all of such Subsidiary Guarantees had been issued at the date
of the execution hereof.

          5. RELEASES.

	 	(a)	 	Concurrently with any sale of assets
(including, if applicable, all of the Capital Stock of a Guaranteeing
Subsidiary), all Liens, if any, in favor of the Trustee in the assets
sold thereby shall be released. If the assets sold in such sale or
other disposition (including by way of merger or consolidation) include
all or substantially all of the assets of a Guaranteeing Subsidiary or
all of the Capital Stock of a Guaranteeing Subsidiary, then the
Guaranteeing Subsidiary (in the event of a sale or other disposition of
all of the Capital Stock of such Guaranteeing Subsidiary) or the Person
acquiring the property (in the event of a sale or other disposition of
all or substantially all of the assets of such Guaranteeing Subsidiary)
shall be released from and relieved of its Obligations under this
Supplemental Indenture and its Subsidiary Guarantee made pursuant
hereto. Upon delivery by the Company to the Trustee of an Officers’
Certificate to the effect that such sale or other disposition was made
by the Company or the Guaranteeing Subsidiary, as the case may be, in
accordance with the provisions of the Indenture and this Supplemental
Indenture, the Trustee shall execute any documents reasonably required
in order to evidence the release of the Guaranteeing Subsidiary from
its obligations under this Supplemental Indenture and its Subsidiary
Guarantee made pursuant hereto. If the Guaranteeing Subsidiary is not
released from its obligations under its Subsidiary Guarantee, it shall
remain liable for the full amount of principal of and interest
(including Contingent Interest and Additional Interest, if any) on the
CODES and for the other obligations of such Guaranteeing Subsidiary
under the Indenture as provided in this Supplemental Indenture.
	 
	 	(b)	 	Upon the designation of a Guaranteeing
Subsidiary as an Excluded Subsidiary in accordance with the terms of
the Indenture and the indentures governing the Outstanding Senior
Subordinated Notes as the same are in effect on the date of the
Indenture (whether or not those indentures are subsequently amended,
waived, modified or terminated or expire and whether or not any of
those notes continue to be outstanding), such Guaranteeing Subsidiary
shall be released and relieved of all of its obligations under its
Subsidiary Guarantee and this Supplemental Indenture. Upon delivery by
the Company to the Trustee of an Officers’ Certificate and an Opinion
of Counsel to the effect that such designation of such Guaranteeing
Subsidiary as an Unrestricted Subsidiary was made by the Company in
accordance with the provisions of the Indenture and the indentures
governing , the Outstanding Senior Subordinated Notes as the same are
in effect on the date of the Indenture (whether or not those indentures
are subsequently amended, waived, modified or terminated or expire and
whether or not any of those notes continue to be outstanding),

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	 	 	 	the Trustee shall execute any documents reasonably required in order
to evidence the release of such Guaranteeing Subsidiary from its
Obligations under its Subsidiary Guarantee. Any Guaranteeing
Subsidiary not released from its obligations under its Subsidiary
Guarantee shall remain liable for the full amount of principal of and
interest on the CODES and for the other obligations of any
Guaranteeing Subsidiary under the Indenture as provided herein.

	 	(c)	 	Upon any Guarantor being released from its
guarantees of, and all pledges and security interests granted in
connection with, Indebtedness of the Company or any of its Subsidiaries
(other than a Foreign Subsidiary), such Guarantor shall be released and
relieved of its obligations under this Supplemental Indenture.

          6. NO RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee,
incorporator, stockholder or agent of any Guaranteeing Subsidiary, as such, shall have any
liability for any obligations of the Company or any Guaranteeing Subsidiary under the CODES, any
Subsidiary Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in
respect of, or by reason of, such Obligations or their creation. Each Holder of the CODES by
accepting a CODE waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the CODES. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a waiver is against
public policy.

          7. SUBORDINATION OF SUBSIDIARY GUARANTEES; ANTI-LAYERING. No Guaranteeing Subsidiary shall
incur, create, issue, assume, guarantee or otherwise become liable for any Indebtedness that is
subordinate or junior in right of payment to any Senior Debt of a Guaranteeing Subsidiary and
senior in any respect in right of payment to any of the Subsidiary Guarantees. No Indebtedness
shall be deemed to be subordinated or junior in right of payment to any other Indebtedness solely
by virtue of being unsecured.

          8. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

          9. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture.
Each signed copy shall be an original, but all of them together represent the same agreement.

          10. EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not
affect the construction hereof.

          11. THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiaries
and the Company.

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          IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, all as of the date first above written.

	 	 	 	 	 	 	 
	Dated: February 20, 2009	 	L-3 COMMUNICATIONS HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven M. Post	 	 
	 

	 	 	 	Title: Senior Vice President, General Counsel and
Corporate Secretary	 	 

 

 

Dated: February 20, 2009

Broadcast Sports Inc., a Delaware corporation

D.P. Associates, Inc., a Virginia corporation

Electrodynamics, Inc., an Arizona corporation

Henschel Inc., a Delaware corporation

International Resources Group Ltd., a Delaware corporation

Interstate Electronics Corporation, a California corporation

LinCom Wireless, Inc., a Delaware corporation

L-3 Communications Advanced Laser Systems Technology, Inc., a Florida corporation

L-3 Communications AIS GP Corporation, a Delaware corporation

L-3 Communications Applied Signal and Image Technology, Inc., a Maryland corporation

L-3 Communications Avionics Systems, Inc., a Delaware corporation

L-3 Communications Cincinnati Electronics, Inc., an Ohio corporation

L-3 Communications Crestview Aerospace Corporation, a Delaware corporation

L-3 Communications CyTerra Corporation, a Delaware corporation

L-3 Communications Dynamic Positioning and Control Systems, Inc., a California corporation

L-3 Communications Electron Technologies, Inc., a Delaware corporation

L-3 Communications EO/IR, Inc., a Florida corporation

L-3 Communications EOTech, Inc., a Delaware corporation

L-3 Communications ESSCO, Inc., a Delaware corporation

L-3 Communications Foreign Holdings, Inc., a Delaware corporation

L-3 Communications Geneva Aerospace, Inc., a Texas corporation

L-3 Communications InfraredVision Technology Corporation, a California corporation

L-3 Communications Investments Inc., a Delaware corporation

L-3 Communications Klein Associates, Inc., a Delaware corporation

L-3 Communications MariPro, Inc., a California corporation

L-3 Communications Mobile-Vision, Inc., a New Jersey corporation

L-3 Communications Nautronix Holdings, Inc., a Delaware corporation

L-3 Communications Nova Engineering, Inc., an Ohio corporation

L-3 Communications SafeView, Inc., a Delaware corporation

L-3 Communications Security and Detection Systems, Inc., a Delaware corporation

L-3 Communications Sonoma EO, Inc., a California corporation

L-3 Communications TCS, Inc., a Delaware corporation

L-3 Communications Westwood Corporation, a Nevada corporation

L-3 Fuzing and Ordnance Systems, Inc., a Delaware corporation

L-3 G.A. International, Inc., a Florida corporation

L-3 Global Communications Solutions, Inc., a Virginia corporation

L-3 Services, Inc., a Delaware corporation

Microdyne Communications Technologies Incorporated, a Maryland corporation

Microdyne Corporation, a Maryland corporation

Microdyne Outsourcing Incorporated, a Maryland corporation

Pac Ord Inc., a Delaware corporation

Power Paragon, Inc., a Delaware corporation

SPD Electrical Systems, Inc., a Delaware corporation

SPD Switchgear Inc., a Delaware corporation

Titan Facilities, Inc., a Virginia corporation

Troll Technology Corporation, a California corporation

Wescam Air Ops Inc., a Delaware corporation

Wescam Holdings (US) Inc., a Delaware corporation

 

 

	 	 	 	 	 	 	 
	 	 	As Guaranteeing Subsidiaries	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven M. Post	 	 
	 

	 	 	 	Title: Vice President and Secretary	 	 

L-3 Communications Corporation, a Delaware corporation

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 

Name: Steven M. Post
	 	 
	 

	 	 	 	Title: Senior Vice President, General Counsel and
Corporate Secretary	 	 

L-3 Communications Integrated Systems L.P., a Delaware limited partnership

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS
AIS GP CORPORATION, as General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Vice President and Secretary	 	 

L-3 Communications Flight Capital LLC, a Delaware limited liability company

L-3 Communications Flight International Aviation LLC, a Delaware limited liability company

L-3 Communications Vector International Aviation LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS
VERTEX AEROSPACE LLC, as Sole Member	 	 
	 
	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P., as Sole
Member	 	 
	 
	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS
AIS GP CORPORATION, as General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Vice President and Secretary	 	 

 

 

L-3 Communications Vertex Aerospace LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P., as Sole
Member	 	 
	 
	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS
AIS GP CORPORATION, as General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Vice President and Secretary	 	 

L-3 Communications Germany Holdings, LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS CORPORATION, as Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Senior Vice President, General Counsel and
Corporate Secretary	 	 

L-3 Communications Shared Services, LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS CORPORATION, as Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Senior Vice President, General Counsel and
Corporate Secretary	 	 

 

 

	 	 	 	 	 	 	 
	Dated: February 20, 2009	 	THE BANK OF NEW YORK
MELLON,

as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Franca Ferrera 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Franca Ferrera	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 

 

 

NOTATION ON SENIOR SUBORDINATED NOTE RELATING TO SUBSIDIARY GUARANTEE

          Pursuant to the Supplemental Indenture (the “Supplemental Indenture”) dated as of February 20,
2009 among L-3 Communications Holdings, Inc., the Guarantors party thereto (each a “Guarantor” and
collectively the “Guarantors”) and The Bank of New York Mellon (formerly known as The Bank of New York), as trustee (the “Trustee”), each Guarantor
(i) has jointly and severally unconditionally guaranteed (a) the due and punctual payment of the
principal of and interest (including Contingent Interest and Additional Interest, if any) on the
CODES, whether at maturity or an interest payment date, by acceleration, call for redemption or
otherwise, (b) the due and punctual payment of interest on the overdue principal and interest
(including Contingent Interest and Additional Interest, if any) on the CODES, and (c) in case of
any extension of time of payment or renewal of any CODES or any of such other Obligations, the same
will be promptly paid in full when due in accordance with the terms of the extension or renewal,
whether at stated maturity, by acceleration or otherwise and (ii) has agreed to pay any and all
costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee or any Holder in
enforcing any rights under the Subsidiary Guarantee (as defined in the Supplemental Indenture).
This Guarantee is subordinated to the Senior Debt of each Guarantor to extent set forth in Article
13 of the Indenture.

          Notwithstanding the foregoing, in the event that the Subsidiary Guarantee of any Guarantor
would constitute or result in a violation of any applicable fraudulent conveyance or similar law of
any relevant jurisdiction, the liability of such Guarantor under its Subsidiary Guarantee shall be
reduced to the maximum amount permissible under such fraudulent conveyance or similar law.

          No past, present or future director, officer, employee, agent, incorporator, stockholder or
agent of any Guarantor, as such, shall have any liability for any Obligations of the Company or any
Guarantor under the CODES, any Subsidiary Guarantee, the Indenture, any supplemental indenture
delivered pursuant to the Indenture by such Guarantor, or for any claim based on, in respect of or
by reason of such Obligations or their creation. Each Holder by accepting a CODE waives and
releases all such liability.

          The Subsidiary Guarantee shall be binding upon each Guarantor and its successors and assigns
and shall inure to the benefit of the successors and assigns of the Trustee and the Holders and, in
the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and
privileges herein conferred upon that party shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions hereof.

          The Subsidiary Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication on the CODE upon which the Subsidiary Guarantee is noted has been
executed by the Trustee under the Indenture by the manual signature of one of its authorized
officers. Capitalized terms used herein have the meaning assigned to them in the Indenture, dated
as of July 29, 2005, among L-3 Communications Holdings, Inc., the Guarantors party thereto and the
Trustee.

 

 

Dated: February 20, 2009

Broadcast Sports Inc., a Delaware corporation

D.P. Associates, Inc., a Virginia corporation

Electrodynamics, Inc., an Arizona corporation

Henschel Inc., a Delaware corporation

International Resources Group Ltd., a Delaware corporation

Interstate Electronics Corporation, a California corporation

LinCom Wireless, Inc., a Delaware corporation

L-3 Communications Advanced Laser Systems Technology, Inc., a Florida corporation

L-3 Communications AIS GP Corporation, a Delaware corporation

L-3 Communications Applied Signal and Image Technology, Inc., a Maryland corporation

L-3 Communications Avionics Systems, Inc., a Delaware corporation

L-3 Communications Cincinnati Electronics, Inc., an Ohio corporation

L-3 Communications Crestview Aerospace Corporation, a Delaware corporation

L-3 Communications CyTerra Corporation, a Delaware corporation

L-3 Communications Dynamic Positioning and Control Systems, Inc., a California corporation

L-3 Communications Electron Technologies, Inc., a Delaware corporation

L-3 Communications EO/IR, Inc., a Florida corporation

L-3 Communications EOTech, Inc., a Delaware corporation

L-3 Communications ESSCO, Inc., a Delaware corporation

L-3 Communications Foreign Holdings, Inc., a Delaware corporation

L-3 Communications Geneva Aerospace, Inc., a Texas corporation

L-3 Communications InfraredVision Technology Corporation, a California corporation

L-3 Communications Investments Inc., a Delaware corporation

L-3 Communications Klein Associates, Inc., a Delaware corporation

L-3 Communications MariPro, Inc., a California corporation

L-3 Communications Mobile-Vision, Inc., a New Jersey corporation

L-3 Communications Nautronix Holdings, Inc., a Delaware corporation

L-3 Communications Nova Engineering, Inc., an Ohio corporation

L-3 Communications SafeView, Inc., a Delaware corporation

L-3 Communications Security and Detection Systems, Inc., a Delaware corporation

L-3 Communications Sonoma EO, Inc., a California corporation

L-3 Communications TCS, Inc., a Delaware corporation

L-3 Communications Westwood Corporation, a Nevada corporation

L-3 Fuzing and Ordnance Systems, Inc., a Delaware corporation

L-3 G.A. International, Inc., a Florida corporation

L-3 Global Communications Solutions, Inc., a Virginia corporation

L-3 Services, Inc., a Delaware corporation

Microdyne Communications Technologies Incorporated, a Maryland corporation

Microdyne Corporation, a Maryland corporation

Microdyne Outsourcing Incorporated, a Maryland corporation

Pac Ord Inc., a Delaware corporation

Power Paragon, Inc., a Delaware corporation

SPD Electrical Systems, Inc., a Delaware corporation

SPD Switchgear Inc., a Delaware corporation

Titan Facilities, Inc., a Virginia corporation

Troll Technology Corporation, a California corporation

Wescam Air Ops Inc., a Delaware corporation

Wescam Holdings (US) Inc., a Delaware corporation

 

 

	 	 	 	 	 	 	 
	 	 	As Guaranteeing Subsidiaries	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven M. Post	 	 
	 

	 	 	 	Title: Vice President and Secretary	 	 

L-3 Communications Corporation, a Delaware corporation

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 

Name: Steven M. Post
	 	 
	 

	 	 	 	Title: Senior Vice President, General Counsel and
Corporate Secretary	 	 

L-3 Communications Integrated Systems L.P., a Delaware limited partnership

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS
AIS GP CORPORATION, as General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Vice President and Secretary	 	 

L-3 Communications Flight Capital LLC, a Delaware limited liability company

L-3 Communications Flight International Aviation LLC, a Delaware limited liability company

L-3 Communications Vector International Aviation LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS
VERTEX AEROSPACE LLC, as Sole Member	 	 
	 
	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P., as Sole
Member	 	 
	 
	 	 	By: L-3 COMMUNICATIONS
AIS GP CORPORATION, as General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Vice President and Secretary	 	 

 

 

L-3 Communications Vertex Aerospace LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P., as Sole
Member	 	 
	 
	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS
AIS GP CORPORATION, as General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Vice President and Secretary	 	 

L-3 Communications Germany Holdings, LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS CORPORATION, as Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Senior Vice President, General Counsel and
Corporate Secretary	 	 

L-3 Communications Shared Services, LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 	 	By: L-3 COMMUNICATIONS CORPORATION, as Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/
Steven M. Post 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Post	 	 
	 	 	Title: Senior Vice President, General Counsel and
Corporate SecretaryEX-10.14

Exhibit
10.14

L-3 COMMUNICATIONS HOLDINGS, INC.

2008 LONG TERM PERFORMANCE PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	SECTION 1.
	 	Purpose	 	 	1	 
	 
	SECTION 2.
	 	Definitions; Rules of Construction	 	 	1	 
	 
	SECTION 3.
	 	Eligibility	 	 	3	 
	 
	SECTION 4.
	 	Awards	 	 	3	 
	 
	SECTION 5.
	 	Shares of Stock and Share Units Available Under Plan	 	 	6	 
	 
	SECTION 6.
	 	Award Agreements	 	 	8	 
	 
	SECTION 7.
	 	Adjustments; Change in Control; Acquisitions	 	 	11	 
	 
	SECTION 8.
	 	Administration	 	 	14	 
	 
	SECTION 9.
	 	Amendment and Termination of this Plan	 	 	16	 
	 
	SECTION 10.
	 	Miscellaneous	 	 	16	 

 

 

L-3 COMMUNICATIONS HOLDINGS, INC.

2008 LONG TERM PERFORMANCE PLAN

SECTION 1.     Purpose.

     The purpose of this Plan is to benefit the Corporation’s stockholders by encouraging high
levels of performance by individuals who contribute to the success of the Corporation and its
Subsidiaries and to enable the Corporation and its Subsidiaries to attract, motivate, retain and
reward talented and experienced individuals. This purpose is to be accomplished by providing
eligible individuals with an opportunity to obtain or increase a proprietary interest in the
Corporation and/or by providing eligible individuals with additional incentives to join or remain
with the Corporation and its Subsidiaries.

SECTION 2.     Definitions; Rules of Construction.

     (a)     Defined Terms. The terms defined in this Section shall have the following meanings for
purposes of this Plan:

     “Award” means an award granted pursuant to Section 4.

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

     “Beneficiary” means a person or persons (including a trust or trusts) validly
designated by a Participant or, in the absence of a valid designation, entitled by will or
the laws of descent and distribution, to receive the benefits specified in the Award
Agreement and under this Plan in the event of a Participant’s death.

     “Board of Directors” or “Board” means the Board of Directors of the Corporation.

     “Change in Control” means change in control as defined in Section 7(c).

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Committee” means the Committee described in Section 8(a).

     “Corporation” means L-3 Communications Holdings, Inc.

 

 

     “Employee” means any person, including an officer (whether or not also a director) in
the regular full-time employment of the Corporation or any of
its Subsidiaries who, in the opinion of the Committee is, or is expected to be,
primarily responsible for the management, growth or protection of some part or all of the
business of the Corporation or any of its Subsidiaries, but excludes, in the case of an
Incentive Stock Option, an Employee of any Subsidiary that is not a “subsidiary corporation”
of the Corporation as defined in Code Section 424(f).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

     “Executive Officer” means executive officer as defined in Rule 3b-7 under the Exchange
Act. If the Board has designated the executive officers of the Corporation for purposes of
reporting under the Exchange Act, the designation shall be conclusive for purposes of this
Plan.

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

     “Insider” means any person who is subject to Section 16(b) of the Exchange Act.

     “Minimum Ownership Stock” means any Award of shares of Stock of the Corporation that
are issued, in accordance with Section 4(a)(5), in lieu of cash compensation in order to
satisfy applicable stock ownership guidelines from time to time in effect.

     “Option” means a Nonqualified Stock Option or an Incentive Stock Option as described in
Section 4(a)(1) or (2).

     “Participant” means a person who is granted an Award, pursuant to this Plan, that
remains outstanding.

     “Performance-Based Awards” is defined in Section 4(b).

     “Performance Goals” means any combination of one or more of the following criteria:
cash flow, earnings per share, return on equity, return on invested capital, total
stockholder return or any other performance goal that the Committee in its sole discretion
establishes in accordance with the requirements of Section 162(m) of the Code for which
applicable shareholder
approval requirements are met. Performance Goals may be stated in absolute terms or
relative to comparison companies or indices to be achieved during a period of time.

2

 

     “Rule 16b-3” means Rule 16b-3 under Section 16 of the Exchange Act, as amended from
time to time.

     “Share Units” means the number of units under an Award (or portion thereof) that is
payable solely in cash or is actually paid in cash, determined by reference to the number of
            shares of Stock by which the Award (or portion thereof) is measured.

     “Stock” means shares of Common Stock of the Corporation, par value $0.01 per share,
subject to adjustments made under Section 7 or by operation of law.

     “Subsidiary” means, 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.

     (b)     Rules of Construction. For purposes of this Plan and the Award Agreements, unless
otherwise expressly provided or the context otherwise requires, the terms defined in this Plan
include the plural and the singular, and pronouns of either gender or neuter shall include, as
appropriate, the other pronoun forms.

SECTION 3.     Eligibility.

     Any one or more Awards may be granted to any Employee, or any non-Employee who provides
services to or on behalf of the Corporation or any of its Subsidiaries, who is designated by the
Committee to receive an Award.

SECTION 4.     Awards.

     (a)     Type of Awards. The Committee may from time to time grant any of the following types of
Awards, either singly, in tandem or in combination with other Awards:

     (1)     Nonqualified Stock Options. A Nonqualified Stock Option is an Award in the form of
an option to purchase Stock that is not intended to comply with the requirements of Code
Section 422. The exercise price of each Nonqualified Stock Option granted under this Plan
shall not be less than the Fair Market Value of the Stock on the date that the Option is
granted.

3

 

     (2)     Incentive Stock Options. An Incentive Stock Option is an Award in the form of an
option to purchase Stock that is intended to comply with the requirements of Code Section
422 or any successor section thereof. The exercise price of each Incentive Stock Option
granted under this Plan shall not be less than the Fair Market Value of the Stock on the
date the Option is granted. If a Participant on the date an Incentive Stock Option is
granted owns, directly or indirectly within the meaning of Code Section 424(d), stock
possessing more than ten percent (10%) of the total combined voting power of all classes of
stock of the Corporation, the exercise price per share of the Incentive Stock Option shall
not be less than one hundred and ten percent (110%) of the Fair Market Value per share of
the Stock at the time of grant, and such Incentive Stock Option shall not be exercisable
after the expiration of five (5) years from the date such Incentive Stock Option is granted.
To the extent that the aggregate Fair Market Value of Stock with respect to which one or
more incentive stock options first become exercisable by a Participant in any calendar year
exceeds $100,000, taking into account both Stock subject to Incentive Stock Options under
this Plan and stock subject to incentive stock options under all other plans of the
Corporation or of other entities referenced in Code Section 422(d)(1), the options shall be
treated as Nonqualified Stock Options. For this purpose, the Fair Market Value of the Stock
subject to options shall be determined as of the date the Options were granted.

     (3)     Stock Appreciation Rights. A Stock Appreciation Right is an Award in the form of a
right to receive, upon surrender of the right, but without other payment, an amount based on
the appreciation in the value of the Stock or the Option over a base price established in
the Award, payable in cash, Stock or such other form or combination of forms of payout, at
times and upon conditions (which may include a Change in Control), as may be approved by the
Committee. The minimum base price of a Stock Appreciation Right granted under this Plan
shall not be less than the Fair Market Value of the underlying Stock on the date the Stock
Appreciation Right is granted.

     (4)     Restricted Stock. Restricted Stock is an Award of issued shares of Stock of the
Corporation (other than Minimum Ownership Stock) that are subject to restrictions on
transfer and/or such other restrictions on incidents of ownership as the Committee may
determine.

     (5)     Other Share-Based Awards. The Committee may from time to time grant Awards under
this Plan that provide the Participants with Stock or the right to purchase Stock, or
provide other incentive Awards (including, but not limited to, Minimum Ownership Stock,
phantom stock or units, performance stock or units, bonus stock, dividend equivalent units,
or similar securities or rights) that have a value derived from the value of, or an
exercise or conversion privilege at a price related to, or that are otherwise payable
in shares of Stock. The Awards shall be in a form determined by the Committee, provided
that the Awards shall not be inconsistent with the other express terms of this Plan
applicable to such Awards.

4

 

     (b)     Special Performance-Based Awards. Without limiting the generality of the foregoing, any
of the type of Awards listed in Section 4(a) may be granted as awards that satisfy the requirements
for “performance-based compensation” within the meaning of Code Section 162(m) (“Performance-Based
Awards”), the grant, vesting, exercisability or payment of which may depend on the degree of
achievement of the Performance Goals relative to preestablished targeted levels for the Corporation
or any of its Subsidiaries, divisions or other business units. Performance-Based Awards shall be
subject to the requirements of clauses (1) through (7) below, except that notwithstanding anything
contained in this Section 4(b) to the contrary, any Option or Stock Appreciation Right intended to
qualify as a Performance-Based Award shall not be subject to the requirements of clauses (2), (4),
(5) and (6) below (with such Awards hereinafter referred to as a “Qualifying Option” or a
“Qualifying Stock Appreciation Right”, respectively). An Award that is intended to satisfy the
requirements of this Section 4(b) shall be designated as a Performance-Based Award at the time of
grant.

     (1)     Eligible Class. The eligible class of persons for Awards under this Section 4(b)
shall be all Employees.

     (2)     Performance Goals. The performance goals for any Awards under this Section 4(b)
(other than Qualifying Options and Qualifying Stock Appreciation Rights) shall be, on an
absolute or relative basis, one or more of the Performance Goals. The specific performance
target(s) with respect to Performance Goal(s) must be established by the Committee in
advance of the deadlines applicable under Code Section 162(m) and while the performance
relating to the Performance Goal(s) remains substantially uncertain.

     (3)     Individual Limits. The maximum number of shares of Stock or Share Units that are
issuable under Options, Stock Appreciation Rights, Restricted Stock or other Awards
(described under Section 4(a)(5)) that are granted as Performance-Based Awards to any
Participant shall not exceed five percent of the total shares outstanding of the Corporation
during the life of the Plan, either individually or in the aggregate, subject to adjustment
as provided in Section 7. The maximum number of shares of Stock and Share Units issuable or
payable pursuant to all Performance-Based Awards (including Qualifying Options and
Qualifying Stock Appreciation Rights) granted during a calendar year to any Employee shall
be 500,000, subject to adjustment as provided in Section 7. Awards that are cancelled
during the year shall be counted against these limits to the extent required by Code Section
162(m).

5

 

     (4)     Committee Certification. Before any Performance-Based Award under this Section
4(b) (other than Qualifying Options and Qualifying Stock Appreciation Rights) is paid, the
Committee must certify in writing (by resolution or otherwise) that the applicable
Performance Goal(s) and any other material terms of the Performance-Based Award were
satisfied; provided, however, that a Performance-Based Award may be paid without regard to
the satisfaction of the applicable Performance Goal in the event of the Participant’s death,
permanent disability or retirement or in the event of a Change in Control as provided in
Section 7(b).

     (5)     Terms and Conditions of Awards. Committee Discretion to Reduce Performance Awards.
The Committee shall have discretion to determine the conditions, restrictions or other
limitations, in accordance with the terms of this Plan and Code Section 162(m), on the
payment of individual Performance-Based Awards under this Section 4(b). To the extent set
forth in an Award Agreement, the Committee may reserve the right to reduce the amount
payable in accordance with any standards or on any other basis (including the Committee’s
discretion), as the Committee may impose.

     (6)     Adjustments for Material Changes. To the extent set forth in an Award Agreement,
in the event of (i) a change in corporate capitalization, a corporate transaction or a
complete or partial corporate liquidation, or (ii) any extraordinary gain or loss or other
event that is treated for accounting purposes as an extraordinary item under generally
accepted accounting principles, or (iii) any material change in accounting policies or
practices affecting the Corporation and/or the Performance Goals or targets, the Committee
shall make adjustments to the Performance Goals and/or targets, applied as of the date of
the event, and based solely on objective criteria, so as to neutralize, in the Committee’s
judgment, the effect of the event on the applicable Performance-Based Award.

     (7)     Interpretation. Except as specifically provided in this Section 4(b), the
provisions of this Section 4(b) shall be interpreted and administered by the Committee in a
manner consistent with the requirements for exemption of Performance-Based Awards granted to
Executive Officers as “performance-based compensation” under Code Section 162(m) and
regulations and other interpretations issued by the Internal Revenue Service thereunder.

SECTION 5.     Shares of Stock and Share Units Available Under Plan.

     (a)     Aggregate Limits on Shares and Share Units. (i) The maximum number of shares of Stock that
may be issued pursuant to all Awards under the Plan is 5,000,000, (ii) the maximum number of such
shares of Stock that may be issued pursuant to all Awards of Incentive Stock Options is 3,000,000,
and (iii) the
maximum number of shares of Stock and Share Units that may be issuable or payable pursuant to
all Awards granted during a calendar year to any Participant shall be 500,000, in each case subject
to adjustment as provided in this Section 5 or Section 7.

6

 

     (b)     Sublimit on Full Value Awards. The maximum number of shares of Stock that may be issued
pursuant to Awards under the Plan other than Options and Stock Appreciation Rights is 2,500,000,
subject to adjustment as provided in this Section 5 or Section 7.

     (c)     Reissue of Shares and Share Units. Any unexercised, unconverted or undistributed portion
of any expired, cancelled, terminated or forfeited Award, or any alternative form of consideration
under an Award that is not paid in connection with the settlement of an Award or any portion of an
Award, shall again be available for Awards under Sections 5(a) and (b), as applicable, whether or
not the Participant has received benefits of ownership (such as dividends or dividend equivalents
or voting rights) during the period in which the Participant’s ownership was restricted or
otherwise not vested. To the extent an Award is settled in cash in lieu of issuing shares of Stock
subject thereto, such shares shall be deemed to constitute Cash Units (and not shares of Stock
issued pursuant to an Award) for purposes of the limits set forth in Sections 5(a) and (b). For
the avoidance of doubt, the following shares of Stock shall not become available for reissuance
under the Plan: (1) shares tendered by Participants as full or partial payment to the Corporation
upon exercise of Options or other Awards granted under the Plan; (2) shares of Stock reserved for
issuance upon the grant of Stock Appreciation Rights, to the extent the number of reserved shares
exceeds the number of shares actually issued upon exercise of the Stock Appreciation Rights; and
(3) shares withheld by, or otherwise remitted to, the Corporation to satisfy a Participant’s tax
withholding obligations upon the lapse of restrictions on Restricted Stock or the exercise of
Options or Stock Appreciation Rights or upon any other payment or issuance of shares under any
other Award granted under the Plan.

     (d)     Interpretive Issues. Additional rules for determining the number of shares of Stock or
Share Units authorized under this Plan may be adopted by the Committee, as it deems necessary or
appropriate.

     (e)     Treasury Shares; No Fractional Shares. The Stock which may be issued (which term includes
Stock reissued or otherwise delivered) pursuant to an Award under this Plan may be treasury or
authorized but unissued Stock or Stock acquired, subsequently or in anticipation of a transaction
under this Plan, in the open market or in privately negotiated transactions to satisfy the
requirements of this Plan. No fractional shares shall be issued but fractional interests may be
accumulated.

7

 

     (f)     Consideration. The Stock issued under this Plan may be issued (subject to Section 10(d))
for any lawful form of consideration, the value of which equals the par value of the Stock or such
greater or lesser value as the Committee, consistent with Sections 10(d) and 4(a)(1), (2) and (3),
may require.

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

     (h)     Cashless Exercise. The Committee may also permit the exercise of the Award and payment of
any applicable withholding tax in respect of an Award by delivery of written notice, subject to the
Corporation’s receipt of a third party payment in full in cash (or in such other form as permitted
under Section 5(g)) for the exercise price and the applicable withholding at or prior to the time
of issuance of Stock, in the manner and subject to the procedures as may be established by the
Committee.

SECTION 6.     Award Agreements.

     Each Award under this Plan shall be evidenced by an Award Agreement in a form approved by the
Committee setting forth the number of shares of Stock or Share Units, as applicable, subject to the
Award, and the price (if any) and term of the Award and, in the case of Performance-Based Awards,
the applicable Performance Goals, if any. The Award Agreement shall also set forth (or incorporate
by reference) other material terms and conditions applicable to the Award as determined by the
Committee consistent with the limitations of this Plan.

     (a)     Incorporated Provisions. Award Agreements shall be subject to the terms of this Plan and
shall be deemed to include the following terms:

     (1)     Transferability: An Award shall not be assignable nor transferable, except by will
or by the laws of descent and distribution, and during the lifetime of a Participant the
Award shall be exercised only by such Participant or by his or her guardian or legal
representative, except that Awards, other than Incentive Stock Options, may be transferred
to and thereafter exercised by a family member or family members of a Participant, or
transferred to an irrevocable trust or trusts (or other similar estate
planning entity or entities) established for the benefit of a Participant and/or one or
more of the Participant’s family members, during the Participant’s lifetime. The
designation of a Beneficiary hereunder shall not constitute a transfer prohibited by the
foregoing provisions.

8

 

     (2)     Rights as Stockholder: A Participant shall have no rights as a holder of Stock with
respect to any unissued securities covered by an Award until the date the Participant
becomes the holder of record of these securities. Except as provided in Section 7, no
adjustment or other provision shall be made for dividends or other stockholder rights,
except to the extent that the Award Agreement provides for dividend equivalents or similar
economic benefits.

     (3)     Withholding: The Participant shall be responsible for payment of any taxes or
similar charges required by law to be withheld from an Award or an amount paid in
satisfaction of an Award and these obligations shall be paid by the Participant on or prior
to the payment of the Award. In the case of an Award payable in cash, the withholding
obligation shall be satisfied by withholding the applicable amount and paying the net amount
in cash to the Participant. In the case of an Award paid in shares of Stock, a Participant
shall satisfy the withholding obligation as provided in Section 5(g) or Section 5(h).

     (4)     Option Holding Period: Subject to the authority of the Committee under Section 7,
and except as otherwise provided by the Committee or as allowed under Rule 16b-3 of the
Exchange Act, a minimum six-month period shall elapse between the date of initial grant of
any Option and the sale of the underlying shares of Stock, and the Corporation may impose
legend and other restrictions on the Stock issued on exercise of the Options to enforce this
requirement; provided, however, that such limitation shall not apply to the extent provided
by the Committee on account of the Participant’s death, permanent disability or retirement
or in the event of a Change in Control as provided in Section 7(b).

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

     (b)     Other Provisions. Award Agreements may include other terms and conditions as the
Committee shall approve, including but not limited to the following:

9

 

     (1)     Termination of Employment: A provision describing the treatment of an Award in the
event of the retirement, disability, death or other termination of a Participant’s
employment with or services to the Company, including any provisions relating to the
vesting, exercisability, forfeiture or cancellation of the Award in these circumstances,
subject, in the case of Performance-Based Awards, to the requirements for “performance-based
compensation” under Code Section 162(m).

     (2)     Vesting; Effect of Termination; Change in Control: Any other terms consistent with
the terms of this Plan as are necessary and appropriate to effect the Award to the
Participant, including but not limited to the vesting provisions, any requirements for
continued employment, any other restrictions or conditions (including performance
requirements) of the Award, and the method by which (consistent with Section 7) the
restrictions or conditions lapse, and the effect on the Award of a Change in Control.
Unless otherwise provided by the Committee in the applicable Award Agreement, (1) the
minimum vesting period for Awards of Restricted Stock shall be three years from the date of
grant (or one year in the case of Restricted Stock Awards that are Performance-Based Awards)
and (2) the vesting period of an Award of Restricted Stock may not be accelerated to a date
that is within such minimum vesting period except in the event of the Participant’s death,
permanent disability or retirement or in the event of a Change in Control.

     (3)     Replacement and Substitution: Any provisions permitting or requiring the surrender
of outstanding Awards or securities held by the Participant in whole or in part in order to
exercise or realize rights under or as a condition precedent to other Awards, or in exchange
for the grant of new or amended Awards under similar or different terms; provided, that
except in connection with an adjustment contemplated by Section 7, no such provisions of an
Award Agreement shall permit a “Repricing” as defined in Section 8(d).

     (4)     Dividends: Any provisions providing for the payment of dividend equivalents on
unissued shares of Stock or unpaid Share Units underlying an Award, on either a current or
deferred or contingent basis, and either in cash or in additional shares of Stock; provided
that dividend equivalents may not be paid with respect to Awards of Options or Stock
Appreciation Rights.

     (c)     Contract Rights, Forms and Signatures. Any obligation of the Corporation to any
Participant with respect to an Award shall be based solely upon contractual obligations created by
this Plan and an Award Agreement. No Award shall be enforceable until the Award Agreement has been
signed on behalf of the Corporation by an Executive Officer (other than the recipient) or his or
her delegate. By accepting receipt of the Award Agreement, a Participant shall be deemed to have
accepted and consented to the terms of this Plan and any action taken in good faith
under this Plan by and within the discretion of the Committee, the Board of Directors or their
delegates. Unless the Award Agreement otherwise expressly provides, there shall be no third party
beneficiaries of the obligations of the Corporation to the Participant under the Award Agreement.

10

 

SECTION 7.     Adjustments; Change in Control; Acquisitions.

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

     (1)     proportionately adjust any or all of:

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

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

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

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

     (E)     subject to Section 4(b), the performance targets or standards appropriate
to any outstanding Performance-Based Awards, or

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

     (2)     provide for:

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

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

11

 

     Notwithstanding the foregoing, in the case of an Incentive Stock Option, no adjustment shall
be made which would cause this Plan to violate Section 424(a) of the Code or any successor
provisions thereto, without the written consent of the Participant adversely affected thereby. The
Committee shall act prior to an event described in this paragraph (a) (including at the time of an
Award by means of more specific provisions in the Award Agreement) if deemed necessary or
appropriate to permit the Participant to realize the benefits intended to be conveyed by an Award
in respect of the Stock in the case of an event described in paragraph (a).

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

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

     Notwithstanding the foregoing provisions of this Section 7(b) or any provision in an Award
Agreement to the contrary, if any Award to any Insider is accelerated to a date that is less than
six months after the date of the Award, the Committee may prohibit a sale of the underlying Stock
(other than a sale by operation or law in
exchange for or through conversion into other securities), and the Corporation may impose
legend and other restrictions on the Stock to enforce this prohibition.

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     (c)     Change in Control Definition. For purposes of this Plan, with respect to any Award other
than an Award issued pursuant to an Award Agreement that separately defines the term “change in
control,” a change in control shall include and be deemed to occur upon the following events:

     (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 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 of the assets of the Corporation or of L-3
Communications Corporation or any successor thereto;

     (3)     The election, including the filling of vacancies, during any period of 24 months or
less, of 50 percent or more, of the members of the Board, without the approval of Continuing
Directors, as constituted at the beginning of such period. “Continuing Directors” shall
mean any director of the Company who either (i) is a member of the Board on the date of
grant of the relevant Award, or (ii) is nominated for election to the Board by a majority of
the Board which is comprised of Directors who were, at the time of such nomination,
Continuing Directors; or

     (4)     In the Committee’s sole discretion on a case-by-case basis and solely with respect
to Awards granted to Employees of a Subsidiary of the Corporation, or of a business unit or
division of the Corporation or such Subsidiary, (i) the sale of all or substantially all of
the assets of such Subsidiary, business unit or division or (ii) the sale (including without
limitation by way of merger) of a majority of the combined voting power of such Subsidiary’s
then outstanding voting securities.

     (d)     Business Acquisitions. Awards may be granted under this Plan on the terms and conditions
as the Committee considers appropriate, which may differ from those otherwise required by this Plan
to the extent necessary to reflect a substitution for or assumption of stock incentive awards held
by employees of other entities who become employees of the Corporation or a Subsidiary as the
result of a merger of the employing entity with, or the acquisition of the property or stock of the
employing entity by, the Corporation or a Subsidiary, directly or indirectly.

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SECTION 8.     Administration.

     (a)     Committee Authority and Structure. This Plan and all Awards granted under this Plan shall
be administered by the Compensation Committee of the Board or such other committee of the Board or
subcommittee of the Compensation Committee as may be designated by the Board and constituted so as
to permit this Plan to comply with the disinterested administration requirements of Rule 16b-3
under the Exchange Act and the “outside director” requirement of Code Section 162(m). The members
of the Committee shall be designated by the Board. A majority of the members of the Committee (but
not fewer than two) shall constitute a quorum. The vote of a majority of a quorum or the unanimous
written consent of the Committee shall constitute action by the Committee.

     (b)     Selection and Grant. The Committee shall have the authority to determine the individuals
(if any) to whom Awards will be granted under this Plan, the type of Award or Awards to be made,
and the nature, amount, pricing, timing, and other terms of Awards to be made to any one or more of
these individuals, subject to the terms of this Plan.

     (c)     Construction and Interpretation. The Committee shall have the power to interpret and
administer this Plan and Award Agreements, and to adopt, amend and rescind related rules and
procedures. All questions of interpretation and determinations with respect to this Plan, the
number of shares of Stock, Stock Appreciation Rights, or units or other Awards granted, and the
terms of any Award Agreements, the adjustments required or permitted by Section 7, and other
determinations hereunder shall be made by the Committee and its determination shall be final and
conclusive upon all parties in interest. In the event of any conflict between an Award Agreement
and any non-discretionary provisions of this Plan, the terms of this Plan shall govern.

     (d)     Express Authority to Change Terms of Awards. The Committee may, at any time, alter or
amend any or all Award Agreements under this Plan in any manner that would be authorized for a new
Award under this Plan, including but not limited to any manner set forth in Section 9 (subject to
any applicable limitations thereunder), except that no amendment or cancellation of an Award may
effect a Repricing of such Award, except in connection with an adjustment pursuant to Section 7. A
“Repricing” means any of the following: (i) changing the terms of an Award to lower its exercise
price or base price, (ii) cancelling an Award with an exercise price or base price in exchange for
other Awards with a lower exercise price or base price, or (iii) cancelling an Award with an
exercise price or base price at a time when such price is equal to or greater than the Fair Market
Value of the underlying Stock in exchange for other Awards, cash or property. Without limiting the
Committee’s authority under this plan (including Sections 7 and 9), but subject to any express
limitations of this Plan (including the prohibitions on Repricing set forth in this Section 8(d)),
the Committee shall have the authority to accelerate the
exercisability or vesting of an Award, to extend the term or waive early termination
provisions of an Award (subject to the maximum ten-year term under Section 6(a)(5)), and to waive
the Corporation’s rights with respect to an Award or restrictive conditions of an Award (including
forfeiture conditions), in any case in such circumstances as the Committee deems appropriate.

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     (e)     Rule 16b-3 Conditions; Bifurcation of Plan. It is the intent of the Corporation that this
Plan and Awards hereunder satisfy and be interpreted in a manner, that, in the case of Participants
who are or may be Insiders, satisfies any applicable requirements of Rule 16b-3, so that these
persons will be entitled to the benefits of Rule 16b-3 or other exemptive rules under Section 16
under the Exchange Act and will not be subjected to avoidable liability thereunder as to Awards
intended to be entitled to the benefits of Rule 16b-3. If any provision of this Plan or of any
Award would otherwise frustrate or conflict with the intent expressed in this Section 8(e), that
provision to the extent possible shall be interpreted and deemed amended so as to avoid such
conflict. To the extent of any remaining irreconcilable conflict with this intent, the provision
shall be deemed disregarded as to Awards intended as Rule 16b-3 exempt Awards. Notwithstanding
anything to the contrary in this Plan, the provisions of this Plan may at any time be bifurcated by
the Board or the Committee in any manner so that certain provisions of this Plan or any Award
Agreement intended (or required in order) to satisfy the applicable requirements of Rule 16b-3 are
only applicable to Insiders and to those Awards to Insiders intended to satisfy the requirements of
Rule 16b-3.

     (f)     Delegation and Reliance. The Committee may delegate to the officers or employees of the
Corporation the authority to execute and deliver those instruments and documents, to do all acts
and things, and to take all other steps deemed necessary, advisable or convenient for the effective
administration of this Plan in accordance with its terms and purpose, except that the Committee may
not delegate any discretionary authority to grant or amend an award or with respect to substantive
decisions or functions regarding this Plan or Awards as these relate to the material terms of
Performance-Based Awards to Executive Officers or to the timing, eligibility, pricing, amount or
other material terms of Awards to Insiders. In making any determination or in taking or not taking
any action under this Plan, the Board and the Committee may obtain and may rely upon the advice of
experts, including professional advisors to the Corporation. No director, officer, employee or
agent of the Corporation shall be liable for any such action or determination taken or made or
omitted in good faith.

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

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SECTION 9.     Amendment and Termination of this Plan.

     The Board of Directors may at any time amend, suspend or discontinue this Plan, subject to any
stockholder approval that may be required under applicable law. Notwithstanding the foregoing, no
such action by the Board or the Committee shall, in any manner adverse to a Participant other than
as expressly permitted by the terms of an Award Agreement, affect any Award then outstanding and
evidenced by an Award Agreement without the consent in writing of the Participant or a Beneficiary,
a Participant’s family member or a trust (or similar estate planning entity) established for the
benefit of a Participant and/or one or more of the Participant’s family members entitled to an
Award. Notwithstanding the above, any amendment that would (i) materially increase the benefits
accruing to any Participant or Participants hereunder, (ii) materially increase the aggregate
number of shares of Stock, Share Units or other equity interest(s) that may be issued hereunder, or
(iii) materially modify the requirements as to eligibility for participation in this Plan, shall be
subject to shareholder approval.

SECTION 10.     Miscellaneous.

     (a)     Unfunded Plans. This Plan shall be unfunded. Neither the Corporation nor the Board of
Directors nor the Committee shall be required to segregate any assets that may at any time be
represented by Awards made pursuant to this Plan. Neither the Corporation, the Committee, nor the
Board of Directors shall be deemed to be a trustee of any amounts to be paid or securities to be
issued under this Plan.

     (b)     Rights of Employees.

     (1)     No Right to an Award. Status as an Employee shall not be construed as a commitment
that any one or more Awards will be made under this Plan to an Employee or to Employees
generally. Status as a Participant shall not entitle the Participant to any additional
Award.

     (2)     No Assurance of Employment. Nothing contained in this Plan (or in any other
documents related to this Plan or to any Award) shall confer upon any Employee or
Participant any right to continue in the employ or other service of the Corporation or any
Subsidiary or constitute any contract (of employment or otherwise) or limit in any way the
right of the Corporation or any Subsidiary to change a person’s compensation or other
benefits or to terminate the employment or services of a person with or without cause.

16

 

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

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

     (e)     Section 409A. Notwithstanding other provisions of the Plan or any Award Agreements
thereunder, no Award shall be granted, deferred, accelerated, extended, paid out or modified under
this Plan in a manner that would result in the imposition of an additional tax under Section 409A
of the Code upon a Participant. In the event that it is reasonably determined by the Board or
Committee that, as a result of Section 409A of the Code, payments in respect of any Award under the
Plan may not be made at the time contemplated by the terms of the Plan or the relevant Award
agreement, as the case may be, without causing the Participant holding such Award to be subject to
taxation under Section 409A of the Code, the Company will make such payment on the first day that
would not result in the Participant incurring any tax liability under Section 409A of the Code;
which, if the Participant is a “specified employee” within the meaning of the Section 409A, shall
be the first day following the six-month period beginning on the date of Participant’s termination
of Employment.

     (f)     Applicable Law. This Plan, Award Agreements and any related documents and matters shall
be governed by, and construed in accordance with, the laws of the State of New York and applicable
Federal law.

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

17

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