Document:

Exhibit
10.5

 

SEVERANCE PROTECTION AGREEMENT

 

THIS AGREEMENT made as of
the                  
day of                                      ,
1997, by and between CommScope, Inc. (the “Corporation”), and                 
(the “Executive”).

 

WHEREAS, the Board of
Directors of the Corporation (the “Board”) recognizes that the possibility of a
Change in Control (as hereinafter defined) exists and that the threat or the
occurrence of a Change in Control can result in significant distraction of the
Corporation’s key management personnel because of the uncertainties inherent in
such a situation;

 

WHEREAS, the Board has
determined that it is essential and in the best interest of the Corporation and
its stockholders for the Corporation to retain the services of the Executive in
the event of a threat or occurrence of a Change in Control and to ensure the
Executive’s continued dedication and efforts in such event without undue
concern for the Executive’s personal financial and employment security; and

 

WHEREAS, in order to
induce the Executive to remain in the employ of the Corporation, particularly
in the event of a threat or the occurrence of a Change in Control, the
Corporation desires to enter into this Agreement with the Executive to provide
the Executive with certain benefits in the event the Executive’s employment is
terminated under circumstances described herein.

 

NOW, THEREFORE, in
consideration of the respective agreements of the parties contained herein, it
is agreed as follows:

 

1.             Term of Agreement.  This Agreement shall commence as of [                             ,
1997] (the “Effective Date”) and shall continue in effect until
December 31, 1999 (the “Term”); provided, however, that on January 1, 1999, and on each January 1
thereafter, the Term shall automatically be extended for one (1) year unless
either the Executive or the Corporation shall have given written notice to the
other at least ninety (90) days prior thereto that the Term shall not be so
extended; provided, further, however, that
following the occurrence of a Change in Control, the Term shall not expire
prior to the expiration of twenty-four (24) months after such occurrence.

 

2.             Termination of Employment.  If, during the Term, the Executive’s
employment with the Corporation and its Affiliates shall be terminated within
twenty-four (24) months following a Change in Control, the Executive shall be
entitled to the following compensation and benefits:

 

(a)           If the Executive’s employment with
the Corporation and its Affiliates shall be terminated (1) by the Corporation
for Cause or Disability, (2) by reason of the Executive’s death, or (3) by the
Executive other than for Good Reason, the Corporation shall pay to the
Executive his Accrued Compensation.  In
addition to the foregoing, if the Executive’s employment is terminated by the
Corporation for Disability

 

 

or by reason of the
Executive’s death, the Corporation shall pay to the Executive or his
beneficiaries a Pro Rata Bonus.  The
Executive’s entitlement to any other compensation or benefits shall be
determined in accordance with the Corporation’s employee benefits plans and
other applicable programs and practices then in effect.

 

(b)           If the Executive’s employment with
the Corporation and its Affiliates shall be terminated for any reason other
than as specified in Section 2(a), the Executive shall be entitled to the
following:

 

(1)           the Corporation shall pay the
Executive all Accrued Compensation and a Pro Rata Bonus;

 

(2)           the Corporation shall pay the
Executive as severance pay and in lieu of any further compensation for periods
subsequent to the Termination Date, an amount equal to [two (2)] [one and
one-half (1 and 1/2)] times the sum of (A) the Executive’s Base Amount and (B)
the Executive’s Bonus Amount;

 

(3)           for [twenty-four (24)] [eighteen
(18)] months after such termination (the “Continuation Period”), the
Corporation shall at its expense continue on behalf of the Executive and his
dependents and beneficiaries the life insurance, disability, medical, dental
and hospitalization coverages and benefits provided to the Executive
immediately prior to the Change in Control or, if greater, the coverages and
benefits provided at any time thereafter. 
The coverages and benefits (including deductibles and costs) provided in
this Section 2(b)(3) during the Continuation Period shall be no less
favorable to the Executive and his dependents and beneficiaries, than the most
favorable of such coverages and benefits referred to above.  The Corporation’s obligation hereunder with
respect to the foregoing coverages and benefits shall be reduced to the extent
that the Executive obtains any such coverages and benefits pursuant to a
subsequent employer’s benefit plans, in which case the Corporation may reduce
any of the coverages or benefits it is required to provide the Executive
hereunder so long as the aggregate coverages and benefits of the combined
benefit plans is no less favorable to the Executive than the coverages and
benefits required to be provided hereunder. 
This Section 2(b)(3) shall not be interpreted so as to limit any
benefits to which the Executive, his dependents or beneficiaries may be
entitled under any of the Corporation’s employee benefit plans, programs or
practices following the Executive’s termination of employment, including
without limitation, retiree medical and life insurance benefits;

 

(4)           If, at the end of the Continuation
Period, the Executive is not employed by another employer (including
self-employment), the Executive will receive for up to six months, an amount
equal to one-twelfth (1/12) of the sum of (A) the Executive’s Base Amount and
(B) the Executive’s Bonus Amount,

 

2

 

payable at the end of each of the six (6) calendar months following the
end of the Continuation Period; provided however,
that such payments will immediately cease upon the Executive’s employment
(including self-employment) by a subsequent employer.  In addition, the coverages and benefits
described in Section 2(b)(3) shall be continued until the earlier of (x) six
(6) months after the end of the Continuation Period or (y) such time that the
Executive obtains any such coverages or benefits pursuant to a subsequent
employer’s benefit plans;

 

(5)           the Corporation shall pay or
reimburse the Executive for the costs, fees and expenses of outplacement
assistance services (not to exceed twenty-five (25%) of the sum of (A) the
Executive’s Base Amount and (B) the Executive’s Bonus Amount) provided by any
outplacement agency selected by the Executive;

 

(6)           the Corporation shall pay or
reimburse the Executive up to $2,000 for tax and financial planning services in
respect of the calendar year in which the payments provided for in Section
2(b)(2) are paid to the Executive; and

 

(7)           the Corporation shall pay or
reimburse the Executive for the cost of relocation (in accordance with the
Corporation’s relocation policy) to the Executive’s place of residence
immediately prior to any relocation the Executive made for purposes of
employment by the Corporation or General Instrument Corporation after July 1,
1995.

 

(c)           If the Executive’s employment is
terminated by the Corporation without Cause (1) within six (6) months prior to
a Change in Control or (2) at any time prior to the date of a Change in Control
but the Executive reasonably demonstrates that such termination (A) was at the
request of a third party who has indicated an intention or taken steps
reasonably calculated to effect a Change in Control (a “Third Party”) and who
effectuates a Change in Control or (B) otherwise arose in connection with, or
in anticipation of, a Change in Control which has been threatened or proposed
and which actually occurs, such termination shall be deemed to have occurred
after a Change in Control, provided a Change in Control shall actually have
occurred.

 

(d)           (1)           Gross-Up
Payment.  In the event it shall be
determined that any payment (other than the payment provided for in this
Section 2(d)) or distribution of any type to or for the benefit of the
Executive, by the Corporation, any Affiliate of the Corporation, any Person who
acquires ownership or effective control of the Corporation or ownership of a
substantial portion of the Corporation’s assets (within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
and the regulations thereunder) or any Affiliate of such Person, whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or

 

3

 

otherwise (the “Total Payments”), is or will be subject to the excise
tax imposed by Section 4999 of the Code or any interest or penalties with
respect to such excise tax (such excise tax, together with any such interest
and penalties, are collectively referred to as the “Excise Tax”), then the
Executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including any income tax, employment tax or Excise Tax, imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Total Payments.

 

(2)           Determination By Accountant.  All mathematical determinations, and all
determinations as to whether any of the Total Payments are “parachute payments”
(within the meaning of Section 280G of the Code), that are required to be
made under this Section 2(d), including determinations as to whether a
Gross-Up Payment is required, the amount of such Gross-Up Payment and amounts
relevant to the last sentence of this Section 2(d)(2), shall be made by an
independent accounting firm selected by the Executive from among the six (6)
largest accounting firms in the United States (the “Accounting Firm”), which shall
provide its determination (the “Determination”), together with detailed
supporting calculations regarding the amount of any Gross-Up Payment and any
other relevant matter, both to the Corporation and the Executive by no later
than ten (10) days following the Termination Date, if applicable, or such
earlier time as is requested by the Corporation or the Executive (if the
Executive reasonably believes that any of the Total Payments may be subject to
the Excise Tax).  If the Accounting Firm
determines that no Excise Tax is payable by the Executive, it shall furnish the
Executive and the Corporation with an opinion reasonably acceptable to the
Executive and the Corporation that no Excise Tax is payable (including the
reasons therefor) and that the Executive has substantial authority not to
report any Excise Tax on his federal income tax return.  If a Gross-Up Payment is determined to be
payable, it shall be paid to the Executive within twenty (20) days after the
Determination (and all accompanying calculations and other material supporting
the Determination) is delivered to the Corporation by the Accounting Firm.  Any determination by the Accounting Firm
shall be binding upon the Corporation and the Executive, absent manifest
error.  As a result of uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments not made by the Corporation should have been made (“Underpayment”), or
that Gross-Up Payments will have been made by the Corporation which should not
have been made (“Overpayments”).  In
either such event, the Accounting Firm shall determine the amount of the
Underpayment or Overpayment that has occurred. 
In the case of an Underpayment, the amount of such Underpayment
(together with any interest and penalties payable by the Executive as a result
of such Underpayment) shall be promptly paid by the Corporation to or for the
benefit of the Executive.  In the case of
an Overpayment, the Executive shall, at the

 

4

 

direction and expense of the Corporation, take such steps as are
reasonably necessary (including the filing of returns and claims for refund),
follow reasonable instructions from, and procedures established by, the
Corporation, and otherwise reasonably cooperate with the Corporation to correct
such Overpayment, provided, however,
that (i) the Executive shall not in any event be obligated to return to the
Corporation an amount greater than the net after-tax portion of the Overpayment
that he has retained or has recovered as a refund from the applicable taxing
authorities and (ii) this provision shall be interpreted in a manner consistent
with the intent of Section 2(d)(1), which is to make the Executive whole, on an
after-tax basis, from the application of the Excise Tax, it being understood
that the correction of an Overpayment may result in the Executive repaying to
the Corporation an amount which is less than the Overpayment. The fees and
expenses of the Accounting Firm shall be paid by the Corporation.

 

(e)           The amounts provided for in
Sections 2(a) and 2(b)(1) and (2) shall be paid in a single lump sum cash
payment within ten (10) days after the Executive’s Termination Date (or
earlier, if required by applicable law).

 

(f)            The Executive shall not be required
to mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise and no such payment shall be offset or reduced by
the amount of any compensation or benefits provided to the Executive in any
subsequent employment except as provided in Sections 2(b)(3) and 2(b)(4).

 

(g)           The severance pay and benefits
provided for in this Section 2 shall be in lieu of any other severance pay to
which the Executive may be entitled under any severance plan or any other plan,
agreement or arrangement of the Corporation or any of its Affiliates.

 

3.             Notice of Termination.  Following a Change in Control, any intended
termination of the Executive’s employment by the Corporation shall be
communicated by a Notice of Termination from the Corporation to the Executive,
and any intended termination of the Executive’s employment by the Executive for
Good Reason shall be communicated by a Notice of Termination from the Executive
to the Corporation.

 

4.             Fees and Expenses.  The Corporation shall pay all
legal fees and related expenses (including the costs of experts, evidence and
counsel) incurred by the Executive as they become due as a result of (a) the
termination of the Executive’s employment by the Corporation or by the
Executive for Good Reason (including all such fees and expenses, if any,
incurred in contesting, defending or disputing the basis for any such
termination of employment), (b) the Executive’s hearing before the Board of
Directors of the Corporation as contemplated in Section 13.6 of this
Agreement or (c) the Executive seeking to obtain or enforce any right or
benefit provided by this

 

5

 

Agreement or by any other plan or arrangement maintained by the
Corporation under which the Executive is or may be entitled to receive
benefits.

 

5.             Notice. 
For the purposes of this Agreement, notices and all other communications
provided for in the Agreement (including any Notice of Termination) shall be in
writing, shall be signed by the Executive if to the Corporation or by a duly
authorized officer of the Corporation if to the Executive, and shall be deemed
to have been duly given when personally delivered or sent by certified mail, return
receipt requested, postage prepaid, addressed to the respective addresses last
given by each party to the other, provided that all notices to the Corporation
shall be directed to the attention of the Board with a copy to the Secretary of
the Corporation.  All notices and
communications shall be deemed to have been received on the date of delivery
thereof or on the third business day after the mailing thereof, except that
notice of change of address shall be effective only upon receipt.

 

6.             Nature of Rights.  Except as provided in Section 2(g), nothing
in this Agreement shall prevent or limit the Executive’s continuing or future
participation in any benefit, bonus, incentive or other plan or program
provided by the Corporation or any Affiliate of the Corporation and for which
the Executive may qualify, nor shall anything herein limit or reduce such
rights as the Executive may have under any other agreements with the
Corporation or any Affiliate of the Corporation.  Amounts which are vested benefits or which
the Executive is otherwise entitled to receive under any plan or program of the
Corporation or any Affiliate of the Corporation shall be payable in accordance
with such plan or program, except as explicitly modified by this Agreement.

 

7.             Settlement of Claims.  The Corporation’s obligation to make the
payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any circumstances, including,
without limitation, any set-off, counterclaim, defense, recoupment, or other
right which the Corporation may have against the Executive or others.

 

8.             Miscellaneous. 
No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and
signed by the Executive and the Corporation. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar
or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreement or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by any party which are not expressly set
forth in this Agreement.

 

6

 

9.             Successors; Binding Agreement.

 

(a)           This Agreement shall be binding upon
and shall inure to the benefit of the Corporation and its respective Successors
and Assigns.  The Corporation shall
require its respective Successors and Assigns to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Corporation would be required to perform it if no such succession or assignment
had taken place.

 

(b)           Neither this Agreement nor any right
or interest hereunder shall be assignable or transferable by the Executive, his
beneficiaries or legal representatives, except by will or by the laws of
descent and distribution.  This Agreement
shall inure to the benefit of and be enforceable by the Executive’s legal
personal representative.

 

10.           Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Illinois
without giving effect to the conflict of laws principles thereof.  Any action brought by any party to this
Agreement shall be brought and maintained in a court of competent jurisdiction
in the State of Illinois.

 

11.           Severability.  The provisions of this Agreement shall be
deemed severable and the invalidity or unenforceability of any provision shall
not affect the validity or enforceability of the other provisions hereof.

 

12.           Entire Agreement.  This Agreement constitutes the entire
agreement between the parties hereto, and supersedes all prior agreements, if
any, understandings and arrangements, oral or written, between the parties
hereto, with respect to the subject matter hereof.

 

13.           Definitions.

 

13.1.        Accrued Compensation.  For purposes of this Agreement, “Accrued
Compensation” shall mean all amounts of compensation for services rendered to
the Corporation or any of its Affiliates that have been earned or accrued
through the Termination Date but that have not been paid as of the Termination
Date including (a) base salary, (b) reimbursement for reasonable and
necessary business expenses incurred by the Executive on behalf of the
Corporation or of its Affiliates of the Corporation during the period ending on
the Termination Date, (c) vacation pay and (d) bonuses and incentive compensation;
provided, however, that Accrued
Compensation shall not include any amounts described in clause (a) or clause
(d) that have been deferred pursuant to any salary reduction or deferred
compensation elections made by the Executive.

 

13.2.        Affiliate.  For purposes of this Agreement, “Affiliate”
means, with respect to any Person, any entity, directly or indirectly,
controlled by, controlling or under common control with such Person.

 

7

 

13.3.        Base Amount.  For purposes of this Agreement, “Base Amount”
shall mean the Executive’s annual base salary at the rate in effect as of the
date of a Change in Control or, if greater, at any time thereafter, determined
without regard to any salary reduction or deferred compensation elections made
by the Executive.

 

13.4.        “Beneficial Owner,” “Beneficially
Owned” and “Beneficially Owning” shall have the meanings applicable
under Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as
amended.

 

13.5.        Bonus Amount.  For purposes of this Agreement, “Bonus Amount”
shall mean the target annual bonus payable to the Executive under the Incentive
Plan in respect of the fiscal year of the Corporation immediately prior to that
in which the Termination Date occurs.

 

13.6.        Cause.  For purposes of this Agreement, a termination
of employment is for “Cause” if the Executive has been convicted of a felony or
the termination is evidenced by a resolution adopted in good faith by
two-thirds of the Board of Directors of the Corporation that the Executive:

 

(a)           intentionally and continually failed
substantially to perform his reasonably assigned duties with the Corporation
and its Affiliates (other than a failure resulting from the Executive’s
incapacity due to physical or mental illness or from the assignment to the
Executive of duties that would constitute Good Reason) which failure continued
for a period of at least thirty (30) days after a written notice of demand for
substantial performance, signed by a duly authorized officer of the
Corporation, has been delivered to the Executive specifying the manner in which
the Executive has failed substantially to perform, or

 

(b)           intentionally engaged in conduct
which is demonstrably and materially injurious to the Corporation and its Affiliates;
provided, however, that no termination
of the Executive’s employment shall be for Cause as set forth in this Section
13.6(b) until (1) there shall have been delivered to the Executive a copy
of a written notice, signed by a duly authorized officer of the Corporation,
setting forth that the Executive was guilty of the conduct set forth in this
Section 13.6(b) and specifying the particulars thereof in detail, and
(2) the Executive shall have been provided an opportunity to be heard in
person by the Board of Directors of the Corporation (with the assistance of the
Executive’s counsel if the Executive so desires).

 

No act, nor failure to
act, on the Executive’s part, shall be considered “intentional” unless the
Executive has acted, or failed to act, with a lack of good faith and with a
lack of reasonable belief that the Executive’s action or failure to act was in
the best interest of the Corporation and its Affiliates.  Notwithstanding anything contained in this
Agreement to the contrary, no failure to perform by the

 

8

 

Executive after a Notice of Termination is given to the Corporation by
the Executive shall constitute Cause for purposes of this Agreement.

 

13.7.        Change in Control.  “Change in Control” shall mean any of the
following:

 

(a)           the
acquisition by any Person, other than Instrument Partners or Forstmann Little
& Co. Subordinated Debt and Equity Management Buyout Partnership-IV or any
of their Affiliates (collectively, the “Forstmann Little Companies”) of
Beneficial Ownership of Voting Securities which, when added to the Voting
Securities then Beneficially Owned by such Person, would result in such Person
Beneficially Owning (1) 33% or more of the combined Voting Power of the
Corporation’s then outstanding Voting Securities and (2) a number of Voting
Securities greater than the aggregate number of Voting Securities then
Beneficially Owned by the Forstmann Little Companies; provided,
however, that for purposes of this paragraph (a), a Person shall not
be deemed to have made an acquisition of Voting Securities if such Person:  (A) acquires Voting Securities as a result of
a stock split, stock dividend or other corporate restructuring in which all
stockholders of the class of such Voting Securities are treated on a pro rata
basis; (B) acquires the Voting Securities directly from the Corporation; (C)
becomes the Beneficial Owner of 33% or more of the combined Voting Power of the
Corporation’s then outstanding Voting Securities solely as a result of the acquisition
of Voting Securities by the Corporation or any Subsidiary which, by reducing
the number of Voting Securities outstanding, increases the proportional number
of shares Beneficially Owned by such Person, provided that if (x) a Person
would own at least such percentage as a result of the acquisition by the
Corporation or any Subsidiary and (y) after such acquisition by the Corporation
or any Subsidiary, such Person acquires Voting Securities, then an acquisition
of Voting Securities shall have occurred; (D) is the Corporation or any
corporation or other Person of which a majority of its voting power or its
equity securities or equity interest is owned directly or indirectly by the
Corporation (a “Controlled Entity”); or (E) acquires Voting Securities in
connection with a “Non-Control Transaction” (as defined in paragraph (c)
below); or

 

(b)           the
individuals who, as of the Effective Date, are members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least two-thirds of the Board; provided, however,  that if either the election of any new
director or the nomination for election of any new director by the Corporation’s
stockholders was approved by a vote of at least two-thirds of the Incumbent
Board prior to such election or nomination, such new director shall be
considered as a member of the Incumbent Board; provided
further, however, that no individual shall be considered a member of
the Incumbent Board if such individual initially assumed office as a result of
either an actual or threatened “Election Contest” (as described in Rule 14a-11
promulgated under the 1934 Act) or other actual or threatened solicitation of
proxies or consents by or on behalf

 

9

 

of a Person other than the Board (a “Proxy Contest”) including by
reason of any agreement intended to avoid or settle any Election Contest or
Proxy Contest; or

 

(c)           approval
by stockholders of the Corporation of:

 

(1)           a
merger, consolidation or reorganization involving the Corporation (a “Business
Combination”), unless

 

(A)          the stockholders of the Corporation,
immediately before the Business Combination, own, directly or indirectly
immediately following the Business Combination, at least a majority of the
combined voting power of the outstanding voting securities of the corporation
resulting from the Business Combination (the “Surviving Corporation”) in
substantially the same proportion as their ownership of the Voting Securities
immediately before the Business Combination, and

 

(B)           the individuals who were members of
the Incumbent Board immediately prior to the execution of the agreement
providing for the Business Combination constitute at least a majority of the
members of the Board of Directors of the Surviving Corporation, and

 

(C)           no Person (other than the Corporation
or any Controlled Entity, a trustee or other fiduciary holding securities under
one or more employee benefit plans or arrangements (or any trust forming a part
thereof) maintained by the Corporation, the Surviving Corporation or any
Controlled Entity, or any Person who, immediately prior to the Business
Combination, had Beneficial Ownership of 33% or more of the then outstanding
Voting Securities) has Beneficial Ownership of 33% or more of the combined
voting power of the Surviving Corporation’s then outstanding voting securities
(a Business Combination satisfying the conditions of clauses (A), (B) and (C)
of this subparagraph (1) shall be referred to as a “Non-Control Transaction”);

 

(2)           a
complete liquidation or dissolution of the Corporation; or

 

(3)           the
sale of other disposition of all or substantially all of the assets of the
Corporation (other than a transfer to a Controlled Entity).

 

Notwithstanding the
foregoing, a Change of Control shall not be deemed to occur solely because 33%
or more of the then outstanding Voting Securities is Beneficially Owned by (x)
a trustee or other fiduciary holding securities under one or more employee
benefit plans or arrangements (or any trust forming a part thereof) maintained
by the Corporation or any Controlled Entity or (y) any corporation which,
immediately prior to its acquisition of such interest, is owned directly or
indirectly by the

 

10

 

stockholders of the Corporation in the same proportion as their
ownership of stock in the Corporation immediately prior to such acquisition.

 

13.8.        Corporation.  For purposes of this Agreement, all
references to the Corporation shall include its Successors and Assigns.

 

13.9.        Disability.  For purposes of this Agreement, “Disability”
shall mean a physical or mental infirmity which impairs the Executive’s ability
to substantially perform his duties with the Corporation for six (6)
consecutive months, and within the time period set forth in a Notice of Termination
given to the Executive (which time period shall not be less than thirty (30)
days), the Executive shall not have returned to full-time performance of his
duties; provided, however, that if the
Corporation’s Long Term Disability Plan, or any successor plan (the “Disability
Plan”), is then in effect, the Executive shall not be deemed disabled for
purposes of this Agreement unless the Executive is also eligible for “Total
Disability” (as defined in the Disability Plan) benefits (or similar benefits in
the event of a successor plan) under the Disability Plan.

 

13.10.      Good Reason. (a)  For purposes of this Agreement, “Good Reason”
shall mean the occurrence after a Change in Control of any of the following
events or conditions:

 

(1)           a
change in the Executive’s status, title, position or responsibilities
(including reporting responsibilities) which, in the Executive’s reasonable
judgment, represents an adverse change from his status, title, position or
responsibilities as in effect immediately prior thereto; the assignment to the
Executive of any duties or responsibilities which, in the Executive’s
reasonable judgment, are inconsistent with his status, title, position or
responsibilities; or any removal of the Executive from or failure to reappoint
or reelect him to any of such offices or positions, except in connection with
the termination of his employment for Disability, Cause, as a result of his
death or by the Executive other than for Good Reason;

 

(2)           a
reduction in the Executive’s annual base salary below the Base Amount;

 

(3)           the
relocation of the offices of the Corporation at which the Executive is
principally employed to a location more than twenty-five (25) miles from
the location of such offices immediately prior to the Change in Control, or the
Corporation’s requiring the Executive to be based anywhere other than such
offices, except to the extent the Executive was not previously assigned to a
principal location and except for required travel on the Corporation’s business
to an extent substantially consistent with the Executive’s business travel
obligations at the time of the Change in Control;

 

11

 

(4)           the
failure by the Corporation to pay to the Executive any portion of the Executive’s
current compensation or to pay to the Executive any portion of an installment
of deferred compensation under any deferred compensation program of the
Corporation in which the Executive participated, within seven (7) days of the
date such compensation is due;

 

(5)           the
failure by the Corporation to (A) continue in effect (without reduction in
benefit level, and/or reward opportunities) any material compensation or
employee benefit plan in which the Executive was participating immediately
prior to the Change in Control, including, but not limited to, any of the plans
listed in Appendix A hereto, unless a substitute or replacement plan has been
implemented which provides substantially identical compensation or benefits to
the Executive or (B) provide the Executive with compensation and benefits,
in the aggregate, at least equal (in terms of benefit levels and/or reward
opportunities) to those provided for under each other compensation or employee
benefit plan, program and practice in which the Executive was participating immediately
prior to the Change in Control;

 

(6)           the
failure of the Corporation to obtain from its Successors or Assigns the express
assumption and agreement required under Section 9 hereof; or

 

(7)           any
purported termination of the Executive’s employment by the Corporation which is
not effected pursuant to a Notice of Termination satisfying the terms set forth
in the definition of Notice of Termination (and, if applicable, the terms set
forth in the definition of Cause).

 

(b)           Any event or condition described in
Section 13.10(a)(1) through (7) which occurs (1) within six (6) months prior to
a Change in Control or (2) at any time prior to a Change in Control but which
the Executive reasonably demonstrates (A) was at the request of a Third Party
or (B) otherwise arose in connection with, or in anticipation of a Change in
Control which has been threatened or proposed and which actually occurs, shall
constitute Good Reason for purposes of this Agreement notwithstanding that it
occurred prior to a Change in Control.

 

13.11.      Incentive Plan.  For purposes of this Agreement, “Incentive
Plan” shall mean the CommScope, Inc. Annual Incentive Plan, or any successor
annual incentive plan, maintained by the Corporation.

 

13.12.      Notice of Termination.  For purposes of this Agreement, following a
Change in Control, “Notice of Termination” shall mean a written notice of
termination of the Executive’s employment, signed by the Executive if to the
Corporation or by a duly authorized officer of the Corporation if to the
Executive, which indicates the specific termination provision in this
Agreement, if any, relied upon and

 

12

 

which sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated.

 

13.13.      Person.  For purposes of this Agreement, “Person”
shall mean a person within the meaning of Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended.

 

13.14.      Pro Rata Bonus.  For purposes of this Agreement, “Pro Rata
Bonus” shall mean the Bonus Amount multiplied by a fraction of the numerator of
which is the number of days in the year in which an Executive’s Termination
Date occurs through the termination date and the denominator of which is 365.

 

13.15.      Subsidiary.  For purposes of this Agreement, “Subsidiary”
shall mean a corporation as defined in Section 424(f) (or a successor provision
to such section) of the Internal Revenue Code of 1986, as amended, and
regulations and rulings thereunder, with the Corporation being treated as the
employer corporation for purposes of this definition.

 

13.16.      Successors and Assigns.  For purposes of this Agreement, “Successors
and Assigns” shall mean, with respect to the Corporation or the Corporation, a
corporation or other entity acquiring all or substantially all the assets and
business of the Corporation or the Corporation, as the case may be (including
this Agreement) whether by operation of law or otherwise.

 

13.17.      Termination Date.  For purposes of this Agreement, “Termination
Date” shall mean (a) in the case of the Executive’s death, his date of death,
(b) if the Executive’s employment is terminated for Disability, thirty (30)
days after Notice of Termination is given (provided that the Executive shall
not have returned to the performance of his duties on a full-time basis during
such thirty (30) day period) and (c) if the Executive’s employment is
terminated for any other reason, the date specified in the Notice of
Termination (which, in the case of a termination for Cause shall not be less
than thirty (30) days, and in the case of a termination for Good Reason shall
not be more than sixty (60) days, from the date such Notice of Termination is
given); provided, however, that if within thirty
(30) days after any Notice of Termination is given the party receiving such
Notice of Termination in good faith notifies the other party that a dispute
exists concerning the basis for the termination, the Termination Date shall be
the date on which the dispute is finally determined, either by mutual written
agreement of the parties, or by the final judgment, order or decree of a court
of competent jurisdiction (the time for appeal therefrom having expired and no
appeal having been taken).  Notwithstanding
the pendency of any such dispute, the Corporation shall continue to pay the
Executive his Base Amount and continue the Executive as a participant in all
compensation, incentive, bonus, pension, profit sharing, medical,
hospitalization, dental, life insurance and disability benefit plans in which
he was participating when the notice giving rise to the dispute was given,
until the dispute is finally resolved in accordance

 

13

 

with this Section 13.17 whether or not the dispute is resolved in favor
of the Corporation, and the Executive shall not be obligated to repay to the
Corporation any amounts paid or benefits provided pursuant to this sentence.

 

13.18.      Voting Power.  For purposes of this Agreement, “Voting Power”
shall mean the combined voting power of the then outstanding Voting Securities.

 

13.19.      Voting Securities.  For purposes of this Agreement, “Voting
Securities” shall mean, with respect to the Corporation or any Subsidiary, any
securities issued by the Corporation or such Subsidiary, respectively, which
generally entitle the holder thereof to vote for the election of directors of
the Corporation.

 

IN WITNESS WHEREOF, the
Corporation has caused this Agreement to be executed by their duly authorized
officers and the Executive has executed this Agreement as of the day and year
first above written.

 

	
   

  	
  COMMSCOPE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

 

 

14EXHIBIT 10.8

 

 

COMMSCOPE,
INC. 

 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

 

 

As
Amended and Restated

Effective December 15, 2004

 

 

ARTICLE I

 

INTRODUCTION

 

1.1.                              Effective Date.  The effective date of the Plan
is June 8, 1990, and as amended and restated herein, December 15, 2004.

 

1.2.                              Purpose.  The purpose of the Plan is to provide
supplemental retirement benefits for a select group of management and/or highly
compensated employees of CommScope, Inc. and its Subsidiaries. The Plan is an
unfunded arrangement that is not intended to qualify under Section 401(a) of
the Internal Revenue Code of 1986, as amended from time to time, nor be
generally subject to the Employee Retirement Income Security Act of 1974, as
amended from time to time.

 

1.3.                              Legal Effect.  The terms and conditions of the
Plan as restated herein shall amend and supersede, prospectively and in its
entirety, the terms and conditions of the CommScope, Inc. of North Carolina
Supplemental Executive Retirement Plan, originally adopted June 8, 1990 (the “Prior
Plan”), except as expressly stated herein; provided, however, that the
provisions of the Prior Plan shall continue to govern the benefits and rights
of (i) all Participants who were retired under the terms of the Prior Plan as
of December 31, 2000, and, (ii) any other non-retired Participant who was both
actively employed and covered under the terms of the Prior Plan as of December
31, 2000, who elects not to be covered under the Plan as set forth herein in
lieu of coverage under the Prior Plan.  For
the avoidance of doubt, as of and following January 1, 2001, no Participant may
participate in both the Prior Plan and this Plan.

 

1.4.                              Administration.  The Plan shall be administered
by the Board or a Committee appointed by the Board.

 

2

 

ARTICLE
II

 

DEFINITIONS

 

2.1                                 Administrator shall mean the Board, or the Committee appointed by the Board,
responsible for the overall operation and administration of the Plan.

 

2.2                                 Annual Compensation shall mean the Compensation paid to a
Participant by the Company for the Plan Year.

 

2.3                                 Annual Compensation Cap shall mean the lesser of (i) the Participant’s
Annual Compensation up to the limitation amount set forth under Section 401(a)(17) of the Code as applicable to the Plan Year, and (ii)
such Participant’s Annual Compensation up to the specific amounts as set forth
in Appendix A of the Plan herein.

 

2.4                                 Beneficial
Owner, Beneficially Owned and Beneficially Owning shall have
the meanings applicable under Rule
13d-3 promulgated under the 1934 Act.

 

2.5                                 Beneficiary shall mean the person or persons designated by the Participant to
receive a distribution of Plan benefits upon the death of such Participant.

 

2.5.                              Board shall mean the Board of Directors of the Company.

 

2.6.                              Cause shall mean a Participant’s commission of fraud, embezzlement, gross
misconduct, or other felonies against the Company.

 

2.7.                              Change of Control means, any of the
following:

(i)                                     the acquisition by
any person (a “Person”) (within the meaning of Sections 13(d) and 14(d) of the
Securities Act of 1934, as amended (the “1934 Act”)) of Beneficial Ownership of
Voting Securities which, when added to the Voting Securities then Beneficially
Owned by such Person, would result in such Person Beneficially Owning 33% or
more of the combined Voting Power of the Company’s then outstanding Voting
Securities; provided, however, that for purposes of this paragraph (i), a
Person shall not be deemed to have made an acquisition of Voting Securities if
such Person: (1) acquires Voting Securities as a result of a stock split, stock
dividend or other corporate restructuring in which all stockholders of the
class of such Voting Securities are treated on a pro rata basis; (2) acquires
the Voting Securities directly from the Company; (3) becomes the Beneficial
Owner of 33% or more of the combined Voting Power of the Company’s then
outstanding Voting Securities solely as a result of the acquisition of Voting
Securities by the Company or any Subsidiary which, by reducing the number of
Voting Securities outstanding, increases the proportional number of shares
Beneficially Owned by such Person, provided that if (x) a Person would own at
least such percentage as a result of the acquisition by the Company or any
Subsidiary and (y) after such acquisition by the Company or any Subsidiary,
such Person acquires Voting Securities, then an acquisition of Voting
Securities shall have occurred; (4) is the Company or any corporation or other
Person of which a majority of its voting power or its equity securities or
equity interest is owned directly or indirectly by the Company (a “Controlled
Entity”); or (5) acquires Voting Securities in connection with a “Non-Control
Transaction” (as defined in paragraph (iii) below); or

 

3

 

(ii)                                  the individuals
who, as of December 15, 2004, are members of the Board (the “Incumbent Board”)
cease for any reason to constitute at least two-thirds of the Board; provided,
however, that if either the election of any new director or the nomination for
election of any new director by the Company’s stockholders was approved by a
vote of at least two-thirds of the Incumbent Board prior to such election or
nomination, such new director shall be considered as a member of the Incumbent
Board; provided further, however, that no individual shall be considered a
member of the Incumbent Board if such individual initially assumed office as a
result of either an actual or threatened “Election Contest” (as described in
Rule 14a-11 promulgated under the 1934 Act or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board (a “Proxy Contest”) including by reason of any agreement intended to
avoid or settle any Election Contest or Proxy Contest; or

 

(iii)                               approval by stockholders of
the Company of:

 

(A)                              a merger,
consolidation or reorganization involving the Company (a “Business Combination”),
unless

 

(1)                                  the stockholders of
the Company, immediately before the Business Combination, own, directly or
indirectly immediately following the Business Combination, at least a majority
of the combined voting power of the outstanding voting securities of the
corporation resulting from the Business Combination (the “Surviving Corporation”)
in substantially the same proportion as their ownership of the Voting
Securities immediately before the Business Combination, and

 

(2)                                  the individuals who
were members of the Incumbent Board immediately prior to the execution of the
agreement providing for the Business Combination constitute at least a majority
of the members of the Board of Directors of the Surviving Corporation, and

 

(3)                                  no Person (other
than the Company or any Controlled Entity, a trustee or other fiduciary holding
securities under one or more employee benefit plans or arrangements (or any
trust forming a part thereof) maintained by the Company, the Surviving
Corporation or any Controlled Entity, or any Person who, immediately prior to
the Business Combination, had Beneficial Ownership of 33% or more of the then
outstanding Voting Securities) has Beneficial Ownership of 33% or more of the
combined voting power of the Surviving Corporation’s then outstanding voting
securities (a Business Combination satisfying the conditions of clauses (1),
(2) and (3) of this subparagraph (A) shall be referred to as a “Non-Control
Transaction”);

 

(B)                                a complete
liquidation or dissolution of the Company; or

 

(C)                                the sale or other
disposition of all or substantially all of the assets of the Company (other
than a transfer to a Controlled Entity).

 

Notwithstanding
the foregoing, a Change of Control shall not be deemed to occur solely because
33% or more of the then outstanding Voting Securities is Beneficially Owned by
(x) a trustee or other fiduciary holding securities under one or more employee
benefit plans or

 

4

 

arrangements
(or any trust forming a part thereof) maintained by the Company or any
Controlled Entity or (y) any corporation which, immediately prior to its
acquisition of such interest, is owned directly or indirectly by the
stockholders of the Company in the same proportion as their ownership of stock
in the Company immediately prior to such acquisition.

 

2.6.                              Code shall mean the Internal Revenue Code of 1986, as amended from time to
time.

 

2.7.                              Committee shall mean a committee created by
the Board to determine compensation matters involving officers and
directors.  Any function exercisable by
such Committee may also be exercised by the Board if no such Committee is ever
created or is created and subsequently disbanded.  Members of the Committee may be Board members
or other officers of the Company as designated by the Board.

 

2.8.                              Company shall mean CommScope, Inc., and any successor corporation or other legal
entity thereto.

 

2.9.                              Compensation in respect of any Plan Year shall mean the cash salary and wages paid to
the Participant by the Company, including annual bonuses and commissions earned
and accrued in respect of such Plan Year (whether or not actually paid in that
Plan Year), but excluding payments associated with any other employee benefit
plan, profit sharing plan, long term incentive or stock and stock option
programs provided by the Company. 
Compensation shall also include any salary reduction contributions made
by the Company under another Company sponsored employee benefit plan that
satisfies the requirements of Section 125 or Section 401(k) of the Code.

 

2.10.                        Early Retirement Date shall mean, unless determined otherwise by the
Plan Administrator on a case-by-case basis, the first day of the calendar month
coincident with or next following the later of the Participant’s 55th birthday
and the completion of 10 years of Service with the Company.

 

2.11.                        Earnings shall mean the notional
investment amounts periodically credited to each Participant’s Special Account
or Regular Account.

 

2.12.                        ERISA shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time.

 

2.13.                        Normal Retirement Date shall mean the first day of the calendar month
coincident with or next following the Participant’s 65th birthday.

 

2.14.                        Participant shall mean any individual actively employed by the Company or Subsidiary
who is a member of a select group of management and/or highly compensated
employees and who is designated a Participant by the Board or the Committee.

 

2.15.                        Plan shall mean the CommScope, Inc. Supplemental Executive Retirement Plan as
Amended and Restated Effective December 15, 2004, as amended from time to time.

 

2.16.                        Plan Year shall mean the calendar year.

 

2.17.                        Prior Plan shall mean the plan and plan provisions of the CommScope, Inc. of North
Carolina Supplemental Executive Retirement Plan as in effect as of December 31,
2000 and prior to the amendment and restatement of such Plan effective January
1, 2001.

 

5

 

2.18.                        Regular Account shall mean the individual account established for each employee who
first becomes a Participant in the Plan on or after January 1, 2001, or any
other actively employed Participant under the Prior Plan as of December 31,
2000 who elects to be covered under the terms of this Plan, to which the
Company credits an annual Company contribution and Earnings as provided in
Article IV herein.

 

2.19.                        Service shall mean the period of full time employment of a Participant with (i)
the Company, (ii) a prior parent corporation and/or a prior Subsidiary, or
(iii) a Subsidiary or parent corporation. 
Notwithstanding the above, at the complete discretion of the Board or
Committee, Service for purposes of determining any Participant’s Special
Account may include all or any part of a Participant’s continuous full time
employment with the company with whom such Participant was employed immediately
prior to becoming employed by the Company or Subsidiary.

 

2.20.                        Special Account shall mean the initial individual account established for each employee
who first becomes a Participant in the Plan on or after the January 1, 2001, or
any other actively employed Participant under the Prior Plan as of December 31,
2000 who elects to be covered under the terms of this Plan, to which the
Company credits a single lump sum amount and Earnings thereafter as provided in
Article IV herein.

 

2.21.                        Subsidiary shall mean any corporation or other legal entity (whether or not
incorporated), in which the Company directly or indirectly owns either (A)
Voting Securities possessing at least 50% of the Voting Power of such entity,
or (B) if such entity does not issue Voting Securities, at least 50% of the
ownership interests in such entity.

 

2.22.                        Supplemental Retirement Account Balance shall mean the total of the Participant’s
Regular Account and Special Account, including Earnings thereon, as of any
date.

 

2.23.                        Survivor’s Benefit shall mean the Supplemental Retirement Account
Balance payable to the Participant’s Beneficiary in accordance with Article V
herein.

 

2.24.                        Termination of Service shall mean the termination of a Participant’s
active Service with the Company or any Subsidiary, division or unit whether by
voluntary or involuntary separation, retirement, death, or disability.

 

2.25.                        Voting
Power shall mean the combined voting power of the then outstanding Voting
Securities.

 

2.26.                        Voting
Securities shall mean, with respect to the Company or any Subsidiary, any
securities issued by the Company or such Subsidiary, respectively, which
generally entitle the holder thereof to vote for the election of directors of
the Company.

 

6

 

ARTICLE III

 

DESIGNATION OF PARTICIPANTS AND ELIGIBILITY FOR BENEFITS

 

3.1.                              Designation of Participants.   An
actively employed Participant under the Prior Plan as of December 31, 2000 who
elects to be covered under the terms of this Plan shall automatically become a
Participant in this Plan.  Any other
employee shall become a Participant in this Plan when the Board or the
Committee has (i) approved his selection to become a Participant in the Plan,
(ii) determined the amount of any Special Account to be credited to the
employee, and (iii) notified the employee, in writing, that he is a Participant
in the Plan.  Such notice shall be given
to a Participant by the Company with the concurrence of the Board or the
Committee and shall be accompanied by such information as shall be deemed
appropriate to describe the provisions of the Plan and the benefits thereunder.

 

3.2.                              Eligibility for Benefits.  Benefits
shall be payable in respect of a Participant if:

 

(a)
the Participant’s Termination of Service occurs on or after his Normal
Retirement Date.

 

(b)
the Participant’s Termination of Service occurs on or after his Early
Retirement Date.

 

(c)
the Participant’s Termination of Service occurs as a result of (i) his death
while in active Service before his Early Retirement Date or Normal Retirement
Date and he is survived by his Beneficiary, or (ii) his disability as described
in section 5.5 herein.

 

(d)
the Participant’s involuntary Termination of Service by the Company for reasons
other than for Cause.

 

Except
as provided in (c) or (d) above, in section 3.5 below, or upon a complete
termination of the Plan in accordance with section 8.1 below, no benefits shall
be payable hereunder with respect to any Participant whose Termination of
Service occurs prior to the earlier of his Early Retirement Date or his Normal Retirement
Date.

 

3.3.                              Continued Employment after Normal Retirement Date.  In the
event a Participant remains an active employee of the Company or any
Subsidiary, division or unit after his Normal Retirement Date, his right to
benefits under this Plan shall be fully vested, but no benefits shall be
payable to the Participant until the first day of the calendar month following
his Termination of Service for any reason. 
In addition, any such Participant who remains an active employee of the
Company or any Subsidiary, division or unit after his Normal Retirement Date,
shall continue to be eligible to receive (i) annual contributions to his
Regular Account in accordance with Article 4.3 and (ii) Earnings on his Special
Account and Regular Account in accordance with Article 4.5 hereof.

 

3.4.                              Continued Eligibility for Benefits. 
Notwithstanding the above, the Participant’s rights to receive, or
continue to receive, his Supplemental Executive Retirement Plan Account Balance
as defined in section 4.1 of this Plan, shall be contingent on his

 

(a)
rendering reasonable business consulting and advisory services after a
Termination of Service as the Company may reasonably request from time to time;
provided:

 

(i) It is understood that such services shall not
require the Participant to be active in the day-to-day activities of the
Company, and that the Participant shall perform such services as an independent
contractor.

 

7

 

(ii)
It is further understood that the Participant shall be reasonably compensated
for such services in an amount to be then agreed upon, and he shall be
reimbursed for all expenses incurred in performing such services.

 

(b)  not performing
services similar to the services performed by the Participant for the Company
or any affiliate of the Company, in any capacity, for any business enterprise
which competes in a substantial degree with the Company, nor engaging in any
activity, including the solicitation of the Company’s employees, that involves
substantial competition with the Company, without the prior written consent of
the Company, during the greater of (i) the period during which the Participant
is entitled to payments hereunder, and (ii) two (2) years immediately following
the Participant’s Termination of Service.

 

3.5.                              Special Provision Upon
Change in Control.  In the event of a Change of Control, other
provisions of this Article III notwithstanding, each Participant employed by
the Company immediately prior to such Change of Control shall be eligible to
receive the full value of his Supplemental Retirement Account Balance in the
form of a single lump sum as soon as practicable following his Termination of
Service for any reason other than by the Company for Cause within the two (2)
years after the date of such Change of Control, and the requirements set forth
in Articles 3.2 and 3.4 shall not be applicable.

 

8

 

ARTICLE IV

 

SUPPLEMENTAL RETIREMENT BENEFITS

 

4.1.                              Supplemental Retirement Account Balance.  All benefits
under this Plan shall be provided to each Participant from such Participant’s
Supplemental Retirement Account Balance as established, maintained, and
distributed by the Company in accordance with the terms of the Plan. Each
Participant’s Supplemental Account Balance shall be equal to the sum of such
Participant’s Special Account and Regular Account including Earnings thereon,
as described herein.

 

4.2.                              Special Account.   The Company shall establish for
each Participant in the Plan an individual Special Account.  The Special Account for each actively
employed Participant under the Prior Plan as of December 31, 2000, who elects
to be covered under the terms of this Plan, shall be the lump sum actuarial
equivalent of the retirement benefit accrued by such Participant under the
terms of that Prior Plan as of December 31, 2000.  Such Special Account shall be credited with
Earnings beginning January 1, 2001, and accumulated balances thereunder shall
continue to be credited with Earnings until completely distributed to the
Participant, or his Beneficiary, if applicable.

 

The
Special Account for each other Participant who was not a Participant in the
Prior Plan shall, unless the Board or the Committee determines in its sole
discretion with respect to any Participant to increase the amount of such
Special Account, be equal to the product of 5% of such Participant’s Annual
Compensation as earned over the Plan Year immediately preceding the Plan Year
in which the employee first becomes a Participant,  multiplied by the number of whole and
fractional years of Service completed by the Participant while employed by the
Company in a salary grade 17 or higher, as rendered prior to the January 1 of
the Plan Year in which the employee first becomes a Participant.  Such Special Account shall be credited with
Earnings beginning with the Plan Year in which the Special Account is first
established, and accumulated balances thereunder shall continue to be credited
with Earnings until completely distributed to the Participant, or his
Beneficiary, if applicable.

 

4.3.                              Regular Account.  The Company shall establish for
each Participant in the Plan an individual Regular Account to which the Company
shall credit an annual contribution beginning December 31, 2001 and each
subsequent December 31, thereafter, to each Participant who as of such December
31, is both a Participant in this Plan and is actively employed by the Company
or a Subsidiary. The annual contribution credited to the Regular Account of any
Participant who is in a salary grade above grade 17 as of December 31 of the
Plan Year for which the contribution is determined, shall, unless the Board or
the Committee determines in its discretion with respect to any Plan Year to
increase the amount of such contribution, be equal to 5% of such Participant’s
Annual Compensation up to such Participant’s Annual Compensation Cap, plus 15%
of such Participant’s Annual Compensation in excess of such Participant’s
Annual Compensation Cap as applicable to the Plan Year.

 

9

 

The
annual contribution credited to the Regular Account of any Participant who is
in a salary grade 17, or below, as of December 31 of the Plan Year for which
the contribution is determined, shall, unless the Board or the Committee
determines in its discretion with respect to any Plan Year to increase the
amount of such contribution, be equal to 5% of such Participant’s Annual
Compensation up to such Participant’s Annual Compensation Cap, plus 10% of such
Participant’s Annual Compensation in excess of such Participant’s Annual
Compensation Cap as applicable to the Plan Year.  Contributions credited to the Regular Account
shall be credited with Earnings beginning with the Plan Year immediately
following its determination, and accumulated balances thereunder shall continue
to be credited with Earnings until completely distributed to the Participant,
or his Beneficiary, if applicable.

 

In
addition, the Board or the Committee may at its discretion credit to a
Participant’s Regular Account, at any time or from time to time, a special lump
sum contribution.  Such special lump sum
contributions to a Participant’s Regular Account shall be credited with
Earnings beginning with the Plan Year in which the contribution is determined,
and accumulated balances thereunder shall continue to be credited with Earnings
until completely distributed to the Participant, or his Beneficiary, if
applicable.

 

4.4.                              Determination of Regular Account Credit in Year
of Termination of Service.  If a Participant first experiences a
Termination of Service other than as of December 31 of a Plan Year and
qualifies for benefits under Article III of this Plan, he shall be eligible for
a partial contribution credit to his Regular Account. The partial credit shall
be determined as of the date of his Termination of Service by first computing
the annualized value of the Participant’s Compensation and Annual Compensation
Cap, then multiplying such amounts by the applicable contribution percentage
factors set forth in section 4.3 above, and then multiplying the resulting
amount by a prorated factor equal to the number of completed months of Service
as of the Termination of Service date divided by 12.

 

For
purposes of this section 4.4, the portion of the Participant’s Annual Compensation
considered attributable to his bonus or commission shall be his target bonus or
commission (deemed achieved at a 100% level of performance, if applicable) as
in effect as for the year during which the Termination of Service occurs .  If it is subsequently determined that his
actual bonus or commission attributable to the year of his Termination of
Service is other than such target bonus or commission amount, then the
Administrator may recalculate the partial contribution credit to his Regular Account
to reflect such difference and may adjust the remaining balance of the
Participant’s Supplemental Executive Retirement Plan Account Balance
accordingly.  Such recalculations and
adjustments shall be completed as soon as practicable following the determination
of the actual bonus or commission amounts payable, and any resulting
adjustments shall be credited with Earnings as set forth herein.

 

10

 

4.5.                              Determination and Crediting of Earnings.  The
Earnings credited to each Participant’s Special Account and Regular Account for
each Plan Year shall be determined by the Administrator prior to the beginning
of such Plan Year and shall be communicated to each Participant.  For the Plan Year beginning January 1, 2001,
and for each subsequent Plan Year thereafter until changed by the
Administrator, the Earnings credited to each Participant’s Special Account and
Regular Account shall be at a rate of seven percent (7%) per annum; provided,
however, that the Earnings to be credited shall be reviewed on or before
December 31, 2005 and reset if the Administrator determines that it is
appropriate to do so and shall be further reviewed (and reset if appropriate)
not less frequently than every five (5) years. 
Earnings shall be credited to each Participant’s Special Account or
Regular Account from time to time during each Plan Year in which the
Participant retains an undistributed amount in his Supplemental Retirement
Account Balance.

 

4.6.                              Computation of Actuarial Equivalents.  To the
extent that actuarial calculations under this Plan are required pursuant to the
development of the Special Accounts set forth in section 4.2 above, actuarial
equivalents shall be determined on the basis of mortality tables and interest
factors that are reasonable. Such tables and factors shall be developed with
the assistance of an independent actuary selected by the Plan Administrator.

 

ARTICLE V

 

PAYMENT OF BENEFITS

 

5.1.                              Commencement of Benefit Payments.  The
payment of benefits to a Participant who becomes eligible for payments due to a
Termination of Service described in Article III of the Plan shall commence on
the January 31st or July 31st next following such Participant’s Termination of
Service.  All subsequent payments shall
be made as of the yearly anniversary date of the first payment and on each
subsequent yearly anniversary date until such time as the Participant’s
Supplemental Retirement Account Balance has been completely distributed.

 

5.2.                              Form of Benefit Payments.    (a) The Participant may elect to have his
Supplemental Retirement Account Balance distributed to him in annual
installments covering a period of 5, 10 or 15 years.  At least twelve (12) months prior to the date
that the first installment is scheduled to be made, the Participant shall elect
his installment period on forms provided by the Administrator.  In the absence of a timely election, the
distribution shall be in annual installments over a 5 year period.  Except as indicated herein, once the first
installment has been made, no further changes in the duration of the
installment period will be permitted.

 

(b)  
Notwithstanding the above, a Participant who is eligible for an initial
distribution, or has commenced his distribution but has not received all
applicable payments, may request that the Administrator distribute to him in a
single lump sum, his remaining Supplemental Retirement Account Balance.  Upon the approval of the Administrator, such
distribution requested pursuant to this Article 5.2(b) shall be made in a single
lump sum, provided that the lesser of $50,000, or ten percent (10%) of the
amount remaining in the Supplemental Retirement Account Balance as of the date
of such distribution shall be forfeited prior to the payment of the remainder
to the Participant.  Any such lump sum
payments shall be made as soon as practicable following the approval of such
distribution by the Administrator without regard to the provisions of section
5.1 herein.

 

11

 

5.3.                              Payment of Survivor’s Benefit.  In the
event of the Participant’s death prior to the complete distribution of his
Supplemental Retirement Account Balance, distribution of any remaining amounts
shall be made to the Participant’s Beneficiary in a single lump sum as soon as
practicable following the death of the Participant and the determination of the
Beneficiary.  If no Beneficiary
designation is in effect at the time of the Participant’s death, or if the
Beneficiary is missing or has predeceased the Participant, the Survivor’s
Benefit shall be made to the personal representative of the Participant’s
estate in accordance with applicable state law.

 

5.4.                              Designation of Beneficiary. 
Immediately upon becoming a Participant , each Participant shall
designate in writing the Beneficiary who shall receive the Survivor’s Benefit
upon his death.  The Participant may
change his Beneficiary from time to time, at his discretion, by notifying the
Administrator in writing.

 

5.5.                              Payments in the Event of Disability.  In the
event that a Participant has a physical or mental disability which renders him
totally and permanently incapable of performing his duties for the Company on a
substantially full-time basis, he shall be entitled to his Supplemental
Retirement Account Balance.   The payment
of the Supplemental Retirement Account Balance shall be made in a single lump
sum as soon as practicable following the determination of the Participant’s
total and permanent disability. Such determination of disability shall be made
by the Administrator based on medical evidence deemed acceptable by the
Administrator. Such evidence may include the Participant’s qualification for
disability payments under Social Security, and/or payments under a Company
sponsored long term disability insurance program.

 

5.6.                              Valuation of Benefit Payments. 
All distributions under this Plan shall be based upon the amount
credited to the Participant’s Supplemental Retirement Account Balance as
determined as of the business day immediately preceding the date of
distribution.  In the event that the
benefit payments are in the form of annual installments, each installment shall
be determined by dividing the amount of the Supplemental Retirement Account
Balance, determined as of the business day immediately preceding the date of
such installment, by the remaining number of installments, including the
current installment, to be paid.

 

5.7                                 Investment to Facilitate Payment of Benefits.  Although
the Company is not obligated to invest any specific asset or fund, or purchase
any insurance contract in order to provide a means for the payment of any
liabilities under this Plan, the Company may elect to do so at any time, but
without any obligation to continue such investment or other payment vehicles
for any particular period of time.

 

12

 

ARTICLE VI

 

FUNDING AND PARTICIPANT’S INTEREST

 

6.1                                 Supplemental Executive Retirement Plan Unfunded.  The Plan
shall at all times be considered entirely unfunded for both federal and state
income tax purposes and for purposes of Title I of the Employee Retirement
Income Security Act of 1974, as amended, and no trust shall be created by or
for the Plan.  The crediting to each
Participant’s Special Account or Regular Account, as the case may be, shall be
made through recordkeeping entries.  No
actual funds shall be set aside; provided, however, that nothing herein shall
prevent the Company from establishing one or more grantor trusts from which
benefits due under this Plan may be paid in certain instances.  All distributions shall be paid by the
Company from its general assets and a Participant (or his or her beneficiary)
shall have the rights of a general unsecured creditor against the Company for
any distributions due hereunder.  The
Plan constitutes a mere promise by the Company to make benefit payments in the
future.

 

6.2                                 Participant’s Interest in Plan.  A
Participant has an interest only in the total value of the amount credited to
his accounts.

 

13

 

ARTICLE VII

 

ADMINISTRATION AND INTERPRETATION

 

7.1                                 Administration.  The Administrator shall be in
charge of the overall operation and administration of this Plan.  The Administrator to the extent appropriate
and in addition to the powers described elsewhere in this Plan, has full
discretionary authority to construe and interpret the terms and provisions of
the Plan; to perform all acts, including the delegation of its administrative
responsibilities to advisors or other persons who may or may not be employees
of the Company; and to rely upon the information or opinions of legal counsel
or experts selected to render advice with respect to the Plan, as it shall deem
advisable, with respect to the administration of the Plan.

 

7.2                                 Interpretation.  The Administrator may take
action, correct any defect, supply any omission or reconcile any inconsistency
in the Plan, or in any election hereunder, in the manner and to the extent it
shall deem necessary to carry the Plan into effect or to carry out the Company’s
purposes in adopting the Plan.  Any
decision, interpretation or other action made or taken in good faith by or at
the direction of the Company or the Administrator arising out of, or in
connection with, the Plan, shall be within the absolute discretion of each of
them, and shall be final, binding and conclusive on the Company, and all
Participants and Beneficiaries and their respective heirs, executors,
administrator, successors and assigns. 
The Administrator’s determinations hereunder need not be uniform, and
may be made selectively among eligible employees whether or not they are
similarly situated.

 

7.3                                 Records and Reports.  The
Administrator and its designees shall keep a record of proceedings and actions
and shall maintain or cause to be maintained all such books of account,
records, and other data as shall be necessary for the proper administration of
the Plan.  Such records shall contain all
relevant data pertaining to individual Participants and their rights under this
Plan.  The Administrator shall have the
duty to carry into effect all rights or benefits provided hereunder to the
extent assets of the Company are properly available.

 

7.4                                 Payment of Expenses.  The Company shall bear all expenses incurred
by the Administrator in administering this Plan.  If a claim or dispute arises concerning the
rights of a Participant or Beneficiary to amounts deferred under this Plan,
regardless of the party by whom such claim or dispute is initiated, the Company
shall, upon presentation of appropriate vouchers, pay all legal expenses,
including reasonable attorney’s fees, court costs, and ordinary and necessary
out-of-pocket costs of attorneys, billed to and payable by the Participant or
by anyone claiming under or through the Participant (such person being
hereinafter referred to as the “Participant’s Claimant”), in connection with
the bringing, prosecuting, defending, litigating, negotiating, or settling of
such claim or dispute; provided that:

 

(a) 
The Participant or the Participant’s Claimant shall repay the Company
any such expenses theretofore paid or advanced by the Company if and to the
extent that the party disputing the Participant’s rights obtains a final
judgment in its favor from a court of competent jurisdiction from which no
appeal may be taken, whether because the time to do so has expired or
otherwise, and it is determined by the court that such expenses were not
incurred by the Participant or the Participant’s Claimant while acting in good
faith; provided further, that

 

14

 

(b)  In the case of any
claim or dispute initiated by a Participant or the Participant’s Claimant, such
claim shall be made, or notice of such dispute given, with specific reference
to the provisions of this Plan, to the Administrator within two (2) years,
(three (3) years in the event of a Change of Control) after the occurrence of
the event giving rise to such claim or dispute.

 

7.5                                 Indemnification for Liability.  The
Company shall indemnify the Administrator and the employees of the Company to whom
the Administrator delegates duties under this Plan against any and all claims,
losses, damages, expenses and liabilities arising from their responsibilities
in connection with this Plan, unless the same is determined to be due to gross
negligence or willful misconduct.

 

7.6                                 Claims Procedure.  If a
claim for benefits or for participation under this Plan is denied in whole or
in part, the claimant will receive written notification from the Company within
ninety (90) days following receipt of such claim by the Administrator.  The notification will include specific
reasons for the denial, specific reference to pertinent provisions of this
Plan, a description of any additional material or information necessary to
process the claim and why such material or information is necessary, and an
explanation of the claims review procedure.

 

7.7                                 Review Procedure.  Within
ninety (90) days after the claim is denied, a claimant (or his duly authorized
representative) may file a written request with the Administrator for a review
of his denied claim.  The claimant may
review pertinent documents that were used in processing his claim, submit
pertinent documents, and address issues and comments in writing to the
Administrator.  The Administrator will
notify the claimant of the final decision in writing within forty-five (45)
days following receipt of such written request by the Administrator.  In this response, the Administrator will
explain the reason for the decision, with specific references to pertinent Plan
provisions on which the decision was based.

 

7.8                                 Legal Claims.  In no event may a claimant commence legal
action for benefits the claimant believes are due the claimant until the
claimant has exhausted all of the remedies and procedures afforded the claimant
by this Article VII.  No such legal
action may be commenced more than two (2) years after the date of the
Administrator’s final review decision, described in Section 7.7 above.

 

7.9.                              Participant and Beneficiary Information.  Each Participant shall keep the Administrator
informed of his current address and the current address of his designated
Beneficiary or Beneficiaries.  The
Administrator shall not be obligated to search for any person.  If such person is not located within two (2)
years after the date on which payment of the Participant’s benefits payable
under this Plan may first be made, payment may be made as though the
Participant or his Beneficiary had died at the end of such two (2) year period.

 

15

 

ARTICLE VIII

 

AMENDMENT AND TERMINATION

 

8.1                                 Amendment and Termination.  The
Company shall have the right, at any time, to amend or terminate the Plan in
whole or in part provided that such amendment or termination shall not
adversely affect the right of any Participant or Beneficiary to a payment under
the Plan on the basis of contributions and Earnings to the Participant’s
Regular Account and/or Special Account. 
The Company, upon review of the effectiveness of the Plan, may at any
time recommend amendments to, or termination of, the Plan to the
Administrator.  The Company reserves the
right, in its sole discretion, to discontinue, or completely terminate, the
Plan at any time.  If the Plan is
discontinued with respect to future credits to the Participant’s Regular Account,
the Participant’s Supplemental Retirement Account Balance shall be distributed
in accordance with the provisions of Article V, unless the Company designates
that distributions shall be made on an earlier date.  If the Company designates such earlier date,
each Participant shall receive distribution of his entire Supplemental
Retirement Account Balance as specified by the Administrator for such
event.  If the Plan is completely
terminated by the Company, each Participant shall receive distribution of his
entire Supplemental Retirement Account Balance in one lump sum cash payment as
of the date of the Plan termination as designated by the Administrator.

 

16

 

ARTICLE IX

 

MISCELLANEOUS PROVISIONS

 

9.1                                 Right of the Company to Take Employment Actions.  The
adoption and maintenance of this Plan shall not be deemed to constitute a
contract between the Company and any Participant, nor to be a consideration
for, nor an inducement or condition of, the employment of any person.  Nothing herein contained, or any action taken
hereunder, shall be deemed to give any Participant the right to be retained in
the employee of the Company or to interfere with the right of the Company to discharge
any Participant at any time, nor shall it be deemed to give to the Company the
right to require the Participant to remain in its employ, nor shall it
interfere with the Participant’s right to terminate his or her employment at
any time.  Nothing in this Plan shall
prevent the Company from amending, modifying, or terminating any other benefit
plan.

 

9.2                                 Alienation or Assignment of Benefits.  A
Participant’s rights and interest under the Plan shall not be assigned or
transferred except as otherwise provided herein, and the Participant’s rights
to benefit payments under this Plan shall not be subject to alienation, pledge
or garnishment by or on behalf of creditors (including heirs, beneficiaries, or
dependents) of the Participant or of a Beneficiary.  Notwithstanding the preceding, the Administrator
may direct distributions pursuant to the Plan to an alternate payee pursuant to
a Qualified Domestic Relations Order (QDRO), as defined in Section 414(p) of
the Internal Revenue Code of 1986, as amended, prior to any distribution date
described in the Plan.

 

9.3                                 Right to Withhold.  To the
extent required by law in effect at the time a distribution is made from the
Plan, the Company or its agents shall have the right to withhold or deduct from
any distributions or payments any taxes required to be withheld by federal,
state or local governments.

 

9.4                                 Construction.  All legal questions pertaining
to the Plan shall be determined in accordance with the laws of the State of
North Carolina, to the extent such laws are not superseded by the Employee
Retirement Income Security Act of 1974, as amended, or any other federal law.

 

9.5                                 Headings.  The headings of the
Articles and Sections of this Plan are for reference only.  In the event of a conflict between a heading
and the contents of an Article or Section, the contents of the Article or
Section shall control.

 

9.6                                 Number and Gender.  Whenever
any words used herein are in the singular form, they shall be construed as
though they were also used in the plural form in all cases where they would so
apply, and references to the male gender shall be construed as applicable to
the female gender where applicable, and vice versa.

 

9.7                                 Severability.  If any provision of the Plan is
invalid, in whole or in part, such provision shall to that extent be severable
and shall not affect the remainder of such provision or any other provision of
the Plan.

 

17

 

APPENDIX A

 

	
  Projected Pay Cap at 3.00%

  
	
  Year

  	
   

  	
  Pay Cap

  
	
  2001

  	
   

  	
  170,000

  
	
  2002

  	
   

  	
  180,000

  
	
  2003

  	
   

  	
  180,000

  
	
  2004

  	
   

  	
  190,000

  
	
  2005

  	
   

  	
  190,000

  
	
  2006

  	
   

  	
  200,000

  
	
  2007

  	
   

  	
  210,000

  
	
  2008

  	
   

  	
  210,000

  
	
  2009

  	
   

  	
  220,000

  
	
  2010

  	
   

  	
  230,000

  

 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]