Document:

EX-10.2 DEFERRED COMPENSATION PLAN

 

EXHIBIT 10.2

As amended and restated July 28, 2006,

effective January 1, 2005

EMS TECHNOLOGIES, INC.

DEFERRED COMPENSATION PLAN FOR

NON-EMPLOYEE DIRECTORS

ARTICLE I

DEFERRAL OF COMPENSATION

1.1 PURPOSE AND ELIGIBILITY. This deferred compensation plan (this “Plan”) for persons
serving as members of the Board of Directors (the “Board”) of EMS Technologies, Inc. (the
“Company”) who are not employed by the Company (“Non-Employee Directors”) is adopted in order to
allow each Non-Employee Director to (i) automatically defer a portion of his or her annual retainer
for service on the Board (the “Retainer”) as set forth in Section 1.2 below, and (ii) defer the
receipt of all or part of the balance of his or her Retainer and of his or her other compensation
for service as a member of the Board or committees thereof (collectively, “Eligible Compensation”)
as set forth in Section 1.3 below.

1.2 AUTOMATIC DEFERRAL. Each Non-Employee Director will have a portion of his or her Retainer
then in effect automatically deferred and credited to his or her Deferral Account as set forth in
Sections 2.1 and 2.2 below. The portion of the Retainer subject to such automatic deferral shall be
determined from time to time, prior to the beginning of the calendar year, by the Nominating and
Governance Committee of the Board (the “Committee”), but shall be not less than 40%. Subject to
the other provisions of this Plan, all amounts deferred under this Section shall be payable on the
tenth day of the month following the month in which the participant ceases to be a member of the
Board.

1.3 IRREVOCABLE ELECTION FOR ADDITIONAL DEFERRAL

     A. Except as provided in paragraph 1.3(B), prior to the first day of each calendar year,
each Non-Employee Director shall be entitled to make an irrevocable election on a form provided by
the Company to receive Eligible Compensation payable during such year in cash or to defer payment
of all or any portion thereof into his or her Deferral Account.

          Subject to the other provisions of this Plan, all amounts deferred under this Section with
respect to a calendar year shall be payable on the earlier of: (i) the tenth day of the month
following the month in which the participant ceases to be a member of the Board; or (ii) January 10
of the fifth year following the year of deferral, subject to the right of the participant to elect
at least one year prior to any such date to defer payment of all or a portion of the amount then
payable for one additional period of not less than five years but not beyond the date specified in
clause (i) above.

     B. Each person who becomes a Non-Employee Director during a calendar year shall, within 30
days after the date of becoming a Non-Employee Director, be entitled to make the irrevocable
election described in paragraph 1.3(A) for the remainder of such calendar year, which election
shall be effective only as to Eligible Compensation earned after the date thereof.

     C. Failure to file an election for any year as specified in paragraphs 1.3(A) and (B) shall
be deemed to be an election to receive in cash all Eligible Compensation for such year.

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ARTICLE II

DEFERRAL ACCOUNT; DEFERRED STOCK UNITS

2.1 DEFERRAL ACCOUNT. Amounts deferred under this Plan shall be credited to a notional
bookkeeping account (a “Deferral Account”) established for each participant.

2.2 DEFERRED STOCK UNITS. Amounts credited to each participant’s Deferral Account will be
deemed to be invested in the form of deferred stock units (“DSU’s”) representing shares of the
Company’s $1.00 par value common stock (“EMS Shares”). DSU’s are not actual EMS Shares, and cannot
be settled in or surrendered for EMS Shares. Instead, they are bookkeeping units that will be
administered by the Company to provide a return on each Deferral Account equal to the return that
would occur if the amounts credited to the Deferral Account were used to purchase EMS Shares on the
dates so credited, including the effects of immediate reinvestment of any cash dividends paid from
time to time on the EMS Shares. Holders of DSU’s have no voting rights or any attributes of stock
ownership other than such equivalent economic return. The number of DSU’s received upon each
deferral shall be equal to the amount thereof divided by the Fair Market Value (as then defined in
the Company’s 1997 Stock Incentive Plan or any similar successor plan) of the EMS Shares on the
date of the deferral.

2.3 RECAPITALIZATION. If, as a result of a recapitalization of the Company (including stock
splits), the EMS Shares shall be changed into a greater or smaller number of shares, the number of
DSU’s credited to each Deferral Account shall be appropriately adjusted on the same basis as such
recapitalization. If the Company shall make a distribution in kind on the EMS Shares, or the EMS
Shares shall as a result of a merger, recapitalization or similar transaction be converted into
different property or shares, each DSU shall thereafter be deemed to include or consist of the
property or shares so distributed with respect to each EMS Share, or into which each EMS Share was
so converted. The provisions of this Section shall apply to successive transactions of the type
specified herein that may affect the value of the property deemed from time to time to be included
in the DSU’s.

ARTICLE III

PAYMENT OF DEFERRED COMPENSATION

3.1 METHOD OF PAYMENT OF DEFERRED COMPENSATION. The first date on which a participant is
entitled to receive payment of a particular deferred amount, as determined under the provisions of
Section 1.2 or paragraph 1.3A, is referred to herein as the “Payment Commencement Date” with
respect to such deferred amount. Payment shall be made in the form of a lump sum except to the
extent the participant has elected annual installments over a period of up to ten years specified
by the participant, commencing on the Payment Commencement Date and terminating no later than ten
years from such date. Such election may be made prior to the commencement of the particular
deferral, and may be made or modified thereafter on one occasion at any time at least one year
prior to the Payment Commencement Date; provided however, that no modification may accelerate any
payment date, and no modification may extend the payment date or dates by less than five years,
extend the period for installment payments beyond ten years from the Payment Commencement Date, or
be given effect less than one year after the date such modification election is made.

3.2 AMOUNT OF PAYMENTS. The amount of the each payment shall be the value of the DSU’s in the
participant’s Deferral Account on the payment date, divided (in the case of elections of annual
installments) by the total number of installments (including such installment) remaining to be
paid. In each case, such value shall be the number of DSU’s credited to the Deferral Account
multiplied by the Fair Market Value on the date of the payment, and upon occurrence of the payment
such number of DSU’s shall be reduced to reflect the payment.

3.3 BENEFICIARIES; PAYMENT ON DEATH. A participant may designate on a form provided by the
Company a beneficiary or beneficiaries to receive upon the participant’s death any unpaid amounts
credited to the participant’s Deferral Account. At any time, and from time to time, a participant
may change or revoke
his or her beneficiary designation without the consent of any beneficiary. Any such designation,
change or revocation must be made by executing a new beneficiary designation form and filing such
form with the Company. The payment to

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the beneficiary shall be made in a lump sum. If the
participant designates more than one beneficiary, any payments to beneficiaries will be made in
equal percentages unless the participant designates otherwise. Upon the participant’s death, any
portion of the participant’s Deferral Account that is not payable to a designated beneficiary will
be paid to the participant’s estate in the form of a lump sum.

3.4 PERMANENT DISABILITY. If a participant becomes permanently disabled before payment of all
or any part of amounts credited to his or her Deferral Account, the balance in such Deferral
Account shall be paid in a lump sum as soon as practicable after the occurrence of such disability.
The determination of permanent disability for this purpose shall be made in accordance with
Section 409A of the Internal Revenue Code, as amended, and the applicable regulations and
rulings thereunder, including any transition rules
(“Section 409A”).

3.5 NO ACCELERATION OF PAYMENT; FINANCIAL HARDSHIP. Except as expressly provided in this
Section 3.5, no payment of benefits shall be made under this Plan prior to the payment date or
dates established pursuant to Section 1.2 or paragraph 1.3A above. A participant who is suffering
an unforeseen and severe financial hardship as defined in Section 409A may file a written request
with the Committee for distribution of all or a portion of the amount credited to his or her
Deferral Account. The Committee shall have sole discretion to determine whether to grant a
participant’s hardship request and the amount to distribute to the participant. The Committee
shall not authorize distribution of an amount in excess of that reasonably necessary to alleviate
the hardship, after consideration of both taxes owed on the distribution and other financial
resources available to the participant. Any participant who receives a hardship distribution shall
not be eligible to make additional deferrals of Eligible Compensation pursuant to Section 1.3 until
the first day of the calendar year immediately following the expiration of 12 months from the date
of the distribution.

ARTICLE IV

GENERAL

4.1 PLAN AMENDMENT AND TERMINATION. The Board may amend or terminate this
Plan at any time. If, upon termination of the Plan, the Company also terminates all other
arrangements that would be aggregated with the Plan under Section 409A with respect to the
participants and the Company does not within five years following the date of termination adopt any
other arrangements that would be so aggregated, each participant’s Deferral Account shall be
distributed. Such distribution shall be made in a lump sum and shall not be made earlier than 12
months after the date of termination of the Plan (unless the participant is otherwise entitled to a
distribution during such period), and shall be completed within 24 months after such date of
termination.

4.2 NO RIGHT TO CORPORATE ASSETS. This Plan is a non-qualified, unfunded, deferred compensation
plan. The Company will not be required to reserve, segregate or deposit any funds or assets of any
kind to meet its obligations hereunder, which obligations are general unsecured obligations of the
Company. Nothing in this Plan will give a participant, a participant’s beneficiary, or any other
person any equity or other interest in the assets of the Company, or create either a trust or
fiduciary relationship of any kind between the Company and any such person. Any rights that a
participant, beneficiary or other person may have under this Plan shall not be assignable by any
such person. However, nothing contained herein shall prevent the Company, in its sole discretion,
from establishing a trust (but only under the laws of a jurisdiction within the United States),
including a so-called rabbi trust, for the purpose of providing for the payment of its obligations
arising hereunder . The assets of such trust shall remain subject to the claims of the Company’s
creditors, and no participant shall have any interest in such assets.

4.3 LIMITATION ON RIGHTS CREATED BY PLAN. Nothing in this Plan will give a participant any right
to continue as a member of the Board.

4.4 GOVERNING LAW. This Plan will be construed, enforced and administered according to the laws
of the State of Georgia.

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4.5 ADMINISTRATION AND INTERPRETATION. The Company may adopt any rules and procedures it deems
appropriate to provide for the orderly and efficient administration of the Plan.

          The Committee may interpret the provisions of this Plan, and in the absence of bad faith any
such interpretations shall be binding upon the Company and all participants. The Committee may
also make any amendments or clarifications of a technical nature that it deems appropriate to carry
out the terms of this Plan.

4.6 CHANGE OF CONTROL. For a period of two years after a Change of Control, and except with the
consent of each person at that time participating in this Plan, this Plan may not be terminated,
nor may it be amended if such amendment would (i) reduce the amount of any benefit provided
hereunder below the amount that would have been payable on the date immediately preceding the date
of the Change of Control, or (ii) reduce the rate or amount of benefits accruing hereunder below
that in effect on the date immediately preceding such date.

          A “Change of Control” shall be deemed to have occurred upon the occurrence of a Triggering
Event as defined in the Company’s Stockholder Rights Plan dated as of April 6, 1999.

4.7 CONFORMANCE WITH SECTION 409A. At all times, this Plan shall be operated in
accordance with the requirements of Section 409A. Any action that may be taken (and, to the extent
possible, any action actually taken) by the Committee or the Company shall not be taken (or shall
be void and without effect), if such action violates the requirements of Section 409A. Any
provision in this Plan document that is determined to violate the requirements of Section 409A
shall be void and without effect. In addition, any provision that is required to appear in this
Plan document in accordance with Section 409A that is not expressly set forth shall be deemed to be
set forth herein, and the Plan shall be administered in all respects as if such provision were
expressly set forth.

Page 4 of 4EX-10.3 FORM OF RESTRICTED STOCK AGREEMENT

 

EXHIBIT 10.3

EMS Technologies, Inc.

1997 Stock Incentive Plan

Restricted Stock Award

Restriction Agreement

With

 

July 28, 2006

Dear _________:

The EMS 1997 Stock Incentive Plan (the “Plan”) is intended as an incentive to achieve the
objectives of EMS Technologies, Inc. (the “Company”), through employee participation in the
Company’s success and growth. The Plan provides an opportunity for eligible employees to acquire or
increase their proprietary interest in the Company, and, as to officers, is administered by the
Compensation Committee of the Board of Directors (the “Committee”). The Committee has granted you
an award of Restricted Stock (as defined in the Plan) effective the date hereof, and has authorized
me to prepare and enter into this Restriction Agreement with you.

In consideration of the mutual covenants herein contained, and for other good and valuable
consideration, the Company and you as an employee of the Company do hereby agree as follows:

1. Grant of Shares. Pursuant to action of the Committee, the Company has granted to you 10,000
shares of Restricted Stock (the “Shares”). This award is in all respects made subject to the terms
and conditions of the Plan, a copy of which has been provided to you. By signing and returning a
copy of this Agreement to the Company, you agree to all of the terms and conditions of the Plan for
yourself, any designated beneficiary and your heirs, executors, administrators or personal
representatives. Terms used in this Agreement which are defined in the Plan shall have the meanings
set forth in the Plan. In the event of any conflict between the Plan and this Agreement, the Plan
shall control.

As soon as practicable following your execution of this Agreement, a certificate or certificates
representing the Shares, and bearing the legend described below in Section 6, will be issued in
your name. Upon issuance of the certificates representing the Shares, you shall have all rights of
a stockholder with respect to the Shares, including the right to vote and, subject to Section 10 of
this Agreement, to receive all dividends or other distributions paid or made with respect to the
Shares; provided, however, that the Shares (and any securities of the Company which may be issued
with respect to the Shares by virtue of any dividend reinvestment, stock split, combination, stock
dividend or recapitalization, which securities shall be deemed to be “Shares” hereunder) shall be
subject to the terms and all of the restrictions set forth in this Agreement.

2. Restriction. Until this restriction (the “Restriction”) has lapsed pursuant to Section 3 or
4 below, you may not sell, exchange, assign, transfer, pledge or otherwise dispose of the Shares,
and the Shares shall be subject to forfeiture as set forth in Section 5 below.

 

 

3. Lapse of Restriction by Passage of Time. The Restriction shall lapse and have no further force
or effect, (a) as to 2,000 shares, the first anniversary of the date of this Agreement, (b) as to
2,000 shares, the second anniversary of the date of this Agreement, (c) as to 2,000 shares, the
third anniversary of the date of this Agreement, (d) as to 2,000 shares, the fourth anniversary of
the date of this Agreement, and (e) as to the remaining 2,000 shares, the fifth anniversary of the
date of this Agreement.

4. Lapse of Restriction by Death or Disability. The Restriction shall lapse, and shall have no
further force or effect, upon your death or disability (as defined in the Plan), but not earlier
than December 2, 2006. You may provide to the Company a written designation in a form approved by
counsel for the Company naming a person or persons who shall receive the Shares in the event of
your death. If there is no such designation in effect at the time of your death, the Shares shall
be delivered to and become an asset of your estate.

5. Forfeiture of Shares. Except as may otherwise hereafter be determined by the Committee, in the
event of termination of your employment with the Company due to your voluntary resignation or
involuntary discharge prior to lapse of the Restriction under Section 3 or 4, or in the event you
provide services to a competitor of the Company or any Subsidiary of the nature described in
Section 9.2 of the Plan prior to such lapse (whether or not known to the Company at that time), you
shall immediately forfeit all right, title and interest to the Shares, regardless of whether
unrestricted certificates evidencing the Shares shall have theretofore been delivered to you, and
such Shares shall be cancelled or transferred to the Company by you, without consideration to you
or your executor, administrator, personal representative or heirs.

6. Endorsement and Retention of Certificates. All certificates representing the Shares shall be
endorsed on the reverse thereof with the following legend:

“The shares of stock represented by this certificate and the sale, transfer or other disposition of
such shares are restricted by and subject to a Restriction Agreement dated July 28, 2006, between
the registered holder and the Company, a copy of which is on file with the Secretary of the
Company.”

All certificates for Shares shall be held by the Company until the restrictions thereon shall have
lapsed. As a condition to this award, you shall execute and deliver to the Company a stock power in
the form attached hereto, endorsed in blank, relating to the Shares, as set forth in the Plan.

Upon lapse of the Restriction pursuant to Section 3 or 4 of this Agreement without a prior
forfeiture of the Shares, a certificate or certificates for an appropriate number of unrestricted
Shares shall be delivered to you and the certificate with the legend indicated above shall be
cancelled.

7. Withholding Taxes. You hereby authorize the Company to withhold, at the time of
lapse of the Restriction on the Shares pursuant to Section 3 or 4 above, or at such earlier date as
the award of the Shares shall become taxable to you, from compensation otherwise owing to you, an
amount equal to any taxes required to be withheld by federal, state or local law with respect to
income resulting from such lapse or other taxable event. In the event the compensation otherwise
due to you at that time is for any reason insufficient to

 

 

provide for such payment, you agree that,
as a condition of the delivery to you of certificates evidencing the Shares, you will deliver to
the Company a cashier’s check, or personal check satisfactory to the Company, in an amount equal to
such withholding taxes or any balance thereof.

Notwithstanding the foregoing, at your election the foregoing withholding taxes may be paid by you
by authorizing the Company to withhold and cancel a portion of the Shares otherwise deliverable to
you, in that number of shares having a Fair Market Value (as defined in the Plan) on the date that
taxable income is recognized equal to the amount of such taxes thereby being paid. Such election
shall be made on or before such date, shall be irrevocable, and shall be submitted in writing to
the Treasurer of the Company.

8. No Rights to Continued Employment. Nothing herein confers on you any right to continue in the
employ of the Company or of any parent or subsidiary of the Company.

9. Succession. This Agreement shall be binding upon and operate for the benefit of the Company and
its successors and assigns, and you and your executor, administrator, personal representative and
heirs.

10. Dividends. Any cash dividends which may become payable on the Shares shall be held by the
Company for your account until the Restriction lapses. In such event the Company shall pay interest
on the amount so held as determined by the Committee, and the accumulated amount of such dividends
and interest shall be paid to you upon the lapse of the Restriction. Any such cash shall be
governed by the Restriction, the Restriction with respect to any such cash shall lapse as provided
in Sections 3 and 4 of this Agreement, and any such cash shall be forfeited pursuant to Section 5
to the extent that the Shares on which such dividends were paid shall be so forfeited.

********************

This Agreement has been prepared in duplicate. Please indicate your acceptance by signing in the
space provided below, and return an original for the Company’s records.

IN WITNESS WHEREOF, the Company, acting through the Committee, has caused this agreement to be duly
executed and you have hereunto set your hand and seal, all as of the day and year first written
above.

	 	 	 	 	 
	 	EMS TECHNOLOGIES, INC.

 	 
	 	By:  	 	 
	 	 	Paul B. Domorski 	 
	 	 	Chairman of the Board 	 
	 

Accepted and Agreed:

 

 

 

STOCK TRANSFER POWER

The
undersigned,                                         
,      hereby sells, assigns and transfers unto
                                                           
 ,
  ,     and hereby irrevocably constitutes and appoints EMS
Technologies, Inc. as his or her true and lawful attorney-in-fact, with full power of substitution,
to transfer on the stock records of EMS Technologies, Inc., all right, title and interest of the
undersigned in and to,
                                         shares of the Common Stock of EMS Technologies, Inc.
evidenced by certificate number                                         
                    
          
  ,    dated                                         , 2006.

	 	 	 
	                                                            , 2006

	 	 
	 

	 	               Signature
	 
	 	 
	 

	 	 
	 

	 	               Printed Name

Witness:

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