Document:

20141231 10K EX 10.16

		
			EXHIBIT 10.16
		

		
			 
		

		
			RSU VESTING ACCELERATION AGREEMENT
		

		
			THIS RSU VESTING ACCELERATION AGREEMENT (this “Agreement”) is entered into by and between National Instruments Corporation, a Delaware corporation (the “Company”), and Alexander M. Davern (“Executive”) effective as of October 28, 2014 (the “Effective Date”).
		

			
	
			
				 1.
			Defined Terms. As used herein:

			
	
			
				 (a)
			“Cause” shall mean the occurrence of one or more of the following: (i) Executive’s material violation of a Company policy (including any insider trading policy) or any written agreement with the Company and Executive’s continued failure to cure such matter to the reasonable satisfaction of the Company within ten (10) days following written notice of such matter to Executive from the Company; (ii) Executive’s conviction of, or entry of a plea of guilty or nolo contendere to, a felony (other than motor vehicle offenses the effect of which do not materially impair Executive’s performance of his employment duties);  (iii) a willful act by Executive that constitutes gross misconduct and which is injurious to the Company; (iv) Executive’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company; and (v) the unauthorized use or disclosure by Executive of any proprietary information or trade secrets of the Company and Executive’s continued failure to cure such matter to the reasonable satisfaction of the Company within ten (10) days following written notice of such matter to Executive from the Company.

			
	
			
				 (b)
			“Covered RSUs” means any restricted stock units (“RSUs”) granted to Executive pursuant to a Company equity plan, whether such RSUs were granted before, on or after the Effective Date.

			
	
			
				 (c)
			“Disability” shall have the meaning defined in Section 409A.

			
	
			
				 (d)
			“Good Reason” shall mean the occurrence of any one or more of the following events: (i) the Company or its successor relocates Executive’s principal place of employment by more than one hundred (100) miles; (ii) a reduction in Executive’s base salary by 25% or more from the base salary in effect on the date of this Agreement; or (iii) Executive’s position and duties are materially and adversely changed, resulting in a position of materially less responsibility, and Executive’s title does not include “vice president” or a more senior position; provided, that a change in Executive’s title alone will not constitute “Good Reason” unless there is also a material and adverse change in Executive’s position and duties.  Notwithstanding the foregoing, Executive’s termination shall not constitute a termination for “Good Reason” as a result of any event in (i)-(iii) above unless (1) Executive first provides the Company or its successor with written notice thereof within twenty (20) days after the occurrence of such event, (2) to the extent correctable, the Company or its successor fails to cure the circumstance or event so identified within thirty (30) days after receipt of such notice, and (3) the effective date of Executive’s termination for Good Reason occurs no later than twenty (20) days after the expiration of the Company’s cure period.

			
	
			
				 (e)
			“Involuntary Termination” means a termination of Executive’s service by the Company without Cause or termination by the Executive for Good Reason, provided such termination qualifies as a “separation from service” within the meaning of Section 409A.

		 

		

			 

		

		

			 

		

 

		

			 

		

		

			 

		

			
	
			
				 (f)
			“Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended and the final regulations and any guidance promulgated thereunder.

			
	
			
				 2.
			Vesting Acceleration Upon Involuntary Termination.  Notwithstanding anything to the contrary in the applicable RSU agreements, 100% of Executive’s outstanding Covered RSUs that have not vested at the time of Executive’s Involuntary Termination shall immediately vest, subject to Section 4 and 6.  In the event of any other termination of employment by the Company or the Executive, there shall be no acceleration of vesting unless otherwise set forth in the terms and conditions of the applicable award agreement(s).

			
	
			
				 3.
			Termination due to Death or Disability.  If Executive’s employment terminates by reason of death or Disability, Executive will be entitled to receive benefits with respect to Covered RSUs in accordance with the terms of the terms and conditions of the applicable award agreement(s).

			
	
			
				 4.
			Conditions to Vesting.  As a condition to Executive’s right to receive any benefits under Section 2 hereof, Executive shall execute and deliver to the Company a  release agreement in a form acceptable to the Company (the “Release”), which must become effective and irrevocable no later than the sixtieth (60th) day following Executive’s termination, or such shorter period as required in the Release (the “Release Deadline”).  No benefits will be paid to Executive under Section 2 until the Release becomes effective and irrevocable.  Payment with respect to Covered RSUs not subject to Section 409A will be made on the effective date of the Release.

			
	
			
				 5.
			At-Will Employment.  Nothing herein shall be deemed to affect the “at-will” nature of Executive’s employment.  Accordingly, Executive’s employment with the Company may be terminated at any time, with or without cause or notice, and without any severance payment or similar obligation except to the extent set forth herein.  

			
	
			
				 6.
			Section 409A.  Accelerated vesting of Covered RSUs payable under this Agreement that (i) constitutes deferred compensation subject to Section 409A, and (ii) could become payable in more than one calendar year, will not be paid prior to the calendar year in which the Release Deadline occurs, even if the Release becomes effective and irrevocable in the prior calendar year.  Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination (other than due to death) and the accelerated vesting of Covered RSUs will result in additional taxes under Section 409A if paid to Executive on or within the six (6) month period following Executive’s termination, then the payment of such accelerated Covered RSUs will not be made until the date that is six (6) months and one (1) day following the date of Executive’s termination, unless Executive dies following his termination, in which case, the accelerated Covered RSUs will be paid in shares to Executive’s estate as soon as practicable following his death.  It is the intent of this Agreement to comply with or to qualify for an exemption from Section 409A so that none of the accelerated Covered RSUs will be subject to additional tax imposed under Section 409A, and any ambiguities herein shall be interpreted to so comply.  The Company and Executive agree to work together in good faith to consider amendments to this Severance Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. In no event will the Company reimburse Executive for any taxes that may be imposed on Executive as result of Section 409A.

		 

		

			 

		

		

			 

		

 

		

			 

		

		

			 

		

			
	
			
				 7.
			Miscellaneous.

			
	
			
				 (a)
			Effect on RSU Agreements.  This Agreement shall supersede the RSU agreements governing Covered RSUs with respect to the subject matter hereof.  Such RSU agreements shall otherwise remain in full force and effect with respect to any subject matter not covered by this Agreement. 

			
	
			
				 (b)
			Successors.  This Agreement is personal to Executive and, without the prior written consent of the Company, shall not be assignable by Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  

			
	
			
				 (c)
			Notice.  For the purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered either personally, by reputable overnight courier or by United States certified or registered mail, return receipt requested, postage prepaid, addressed (i) if to Executive at Executive’s last known address evidenced on the Company’s payroll records; and (ii) if to the Company, at the Company’s principal executive offices, attention: General Counsel or, in each case, to such other address as any party may have furnished to the other in writing in accordance with this Agreement, except that notices of change of address shall be effective only upon receipt.

			
	
			
				 (d)
			Amendment; Waiver; Survival.  No provisions of this Agreement may be amended, modified, or waived unless agreed to in writing and signed by Executive and by a duly authorized officer of the Company.  No waiver by either party of any breach by the other party of any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  The respective rights and obligations of the parties under this Agreement shall survive Executive’s termination of employment and the termination of this Agreement to the extent necessary for the intended preservation of such rights and obligations.  For avoidance of doubt, the provisions of this Agreement shall govern all future RSU awards made to Executive unless the agreements for such future Awards specifically reference and waive this Agreement.

			
	
			
				 (e)
			Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Texas without regard to its conflicts of law principles.

			
	
			
				 (f)
			Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in full force and effect. 

			
	
			
				 (g)
			Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same instrument.

			
	
			
				 (h)
			Section Headings.  The section headings in this Agreement are for convenience of reference only, and they form no part of this Agreement and will not affect its interpretation.

		 

		

			 

		

		

			 

		

 

		

			 

		

		

			 

		

			
	
			
				 (i)
			Entire Agreement.  This Agreement sets forth the final and entire agreement of the parties with respect to the subject matter hereof and supersedes all agreements, whether oral or written, by the Company and Executive, with respect to  the subject matter hereof.  Any RSU agreements regarding Covered RSUs are hereby modified and amended as necessary to comport with this Agreement.  For avoidance of doubt, this Agreement does not supersede any other agreements or plans that provide benefits to Executive upon a termination of service. 

			
	
			
				 (j)
			Further Assurances.  The parties hereby agree, without further consideration, to execute and deliver such other instruments and to take such other action as may reasonably be required to effectuate the terms and provisions of this Agreement.

		
			IN WITNESS WHEREOF, the parties have executed this RSU Vesting Acceleration Agreement effective the date first above written.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						THE COMPANY:

				
	
					
						 

					
					
						NATIONAL INSTRUMENTS CORPORATION

				
	
					
						By:

					
					
						/s/ DR. JAMES TRUCHARD

					
					
						 

				
	
					
						 

					
					
						Dr. James Truchard

					
						President

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						EXECUTIVE:

				
	
					
						By:

					
					
						/s/ ALEXANDER M. DAVERN

					
					
						 

				
	
					
						 

					
					
						 Alexander M. Davern20141231 10K EX 10.4

		

			 

		

		
			EXHIBIT 10.4
		

		
			 
		

		
			NATIONAL INSTRUMENTS CORPORATION
		

		
			ANNUAL INCENTIVE PROGRAM 
		

		
			(As Amended on October 2008, March 2009, September 2010,  February 18, 2012 and February 28, 2014)
		

		
			 
		

			
	
			
				SECTION 1
			
DURATION AND PURPOSE

			
	
			
				 1.1
			Effective Date.  The Program is an annual incentive program which will be paid out annually following the end of the calendar year.

			
	
			
				 1.2
			Purpose.  The Program is intended to increase shareholder value and the success of National Instruments Corporation (the “Company”) by providing incentive and reward for accomplishment of certain objectives by key executives.  Its purpose is to connect officer’s compensation to accomplishment of goals critical to the Company’s performance in a calendar year. 

			
	
			
				SECTION 2
			
ELIGIBILITY, SELECTION AND PROCEDURE

			
	
			
				 2.1
			Eligibility.  Officers, Business and Technology Fellows, and Research and Development Fellows (whether employed at the time of or subsequent to the adoption of the Program) are eligible for participation in the Program, with the exception of the President who does not participate.  Eligibility does not guarantee participation and the Company may exclude eligible officers and fellows from participation in this Program.

		
			2.2 Selection of Participants.  From time to time, the President may designate eligible employees (the “Participants”) for participation in the Program; subject to the approval by the Compensation Committee of the Company (the “Committee”), in its sole discretion.  Participants will normally be added to the Program at the start of the Company’s fiscal year.
		

		
			2.3 Bonus Procedure for Executive Officers.  For each calendar year, the President and the Board will approve objectives for each Executive Officer, as defined by Section 16 of the Securities Exchange Act of 1934, as amended (an “Executive Officer”), to attain for that year.  The President and Committee will also identify a monetary amount to be awarded to each Executive Officer corresponding to the achievement of each Executive Officer’s objectives for the year.  At the end of the calendar year, the President and Committee will meet to determine whether the objectives of each Executive Officer were attained and thereafter will approve or disapprove the payment of the annual incentive amounts based upon the achievement of such objectives and the discretion of the President and the Committee.  It is acknowledged that the President and the Committee, acting together, shall have the discretion to pay all or a portion of a monetary amount to an Executive Officer even if such Executive Officer has not attained a particular objective if the President and the Committee believe that such a payment is appropriate to achieve the objectives of the Program.  It is further acknowledged that the Committee may, in its sole discretion, and at any time, (i) reduce or eliminate a Participant’s target or actual award, and/or (ii) reduce or eliminate the amount allocated to the bonus pool for any or all Participants.  The Committee may determine the amount of any reduction on the basis of such factors as it deems relevant in its discretion.
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		2.4  Bonus Procedure for Non-Executive Vice Presidents, Business and Technology Fellows, and Research and Development Fellows.  For each calendar year, the President will approve objectives for each non-executive Vice President, Business and Technology Fellow, and Research and Development Fellow.  The President shall identify a monetary amount to be awarded to each Participant corresponding to the achievement of each participant’s objectives for the year.  At the end of the calendar year, the President will determine whether the objectives of each participant were attained and approve or disapprove the payment of the annual incentive amounts based on the achievement of such objectives, and the discretion of the President.  The President shall have the discretion to pay all or a portion of a monetary amount even if the participant has not met a particular objective if the President believes that such a payment is appropriate to achieve the objectives of the Program.  Further the President may, in his sole discretion, and at any time, (i) reduce or eliminate a Participant’s target or actual award, and/or (ii) reduce or eliminate the amount allocated to the bonus pool for any or all Participants.  The President may determine the amount of any reduction on the basis of such factors as he deems relevant in his discretion.  The President at his election may delegate the foregoing duties to the respective Executive Officer of each participant Vice President.  The President will present to the Committee a brief summary of the payment amounts for the non-executive participants, for final review and approval by the Committee.
		

		
			 
		

		
			2.5 Bonus Target.  Incentive bonuses under this Program are defined as a percentage (with a target of up to 60 per cent for Executive Vice Presidents, a target of up to 30 per cent for Senior Vice Presidents, and a target of up to 20 per cent for Vice Presidents, Business and Technology Fellows, and Research and Development Fellows) of a Participant’s salary (or, in the case of the Senior Vice President of Sales, salary plus targeted commission) (“Base Salary”), based upon attainment of objectives approved in accordance with this Program.
		

			
	
			
				SECTION 3
			
PAYMENT OF BONUS

			
	
			
				 3.1
			Timing of Payment.  Payment of any incentive bonus under this Program shall be made as soon as administratively practicable following the end of the calendar year once the Company books have been closed and audited or, in the discretion of the Committee or, as appropriate, the President, an estimated payment for a portion of the payout may be made during the fourth quarter of the current year based upon projected achievement levels corresponding to each of the objectives for each of the Participants in the Plan.  In the event that estimated payments are made before the end of the calendar year, final determination of the correct amount of each payment bonus will be made pursuant to Section 2.3 and Section 2.4 and differences between the finally-determined amount and the estimated payment will be reconciled by either (a) an additional reconciling payment to the Participant in the event of a shortfall, or (b) remittance by Participant to Company which reconciles any previous overpayment.  

			
	
			
				 3.2
			Employment Required for Payment.  Only Participants actively employed by the Company as an employee on the day of the bonus payout are eligible to receive any incentive bonus under this Program.

			
	
			
				 3.3
			Inclusion in other Compensation Programs.  As determined by the Committee, in consultation with the President, incentive bonus payouts under this Program are special incentive compensation that may be taken into account as salary, compensation, or bonus in determining the amount of any payment under any pension, retirement, or other employee benefit or life insurance plan of the Corporation or any subsidiary.  Thus, by way of example only, incentive bonus payouts may be eligible for such plans as 401(k) deferral or match, but may not be eligible for ESPP and Company performance bonus plans.  Any determination by the Committee as to such matters shall take into account the terms of the other applicable plans (i.e., the terms of the 401 (k) plan, etc.)

		 

		

			 

		

 

		

			 

		

			
	
			
				 3.4
			Right to Receive Payment.  Any incentive bonus that may become payable under this Program is to be paid solely from the general assets of the Company, as determined by the Committee.  Nothing in this Program shall be construed to create a trust or to establish or evidence any Participant’s claim of any right to payment of an actual award other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 

			
	
			
				SECTION 4
			
ADMINISTRATION AND TERMINATION

			
	
			
				 4.1
			Committee Authority.  The Committee, in consultation with the President, shall administer the Program in accordance with the Program’s provisions.  The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which employees shall be granted incentive bonuses, (b) prescribe the terms and conditions of incentive bonuses, except as required to be done by the President pursuant to Section 2.4, (c) interpret and amend the Program, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Program by employees who are foreign nationals or employed outside of the United States, (e) adopt rules for the administration, interpretation and application of the Program as are consistent therewith, and (f) interpret, amend or revoke any such rules.  Neither the members of the Committee nor the President shall be liable for any act, omission or determination taken or made in good faith with respect to the Program or any incentive bonus granted under it.

			
	
			
				 4.2
			Decisions Binding.  All determinations and decisions made by the Committee related to this Program shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law.

			
	
			
				SECTION 5
			
GENERAL PROVISIONS

			
	
			
				 5.1
			No Effect on Employment.  Participation in this Program shall not alter any Participant’s status as an at-will employee of the Company.

			
	
			
				 5.2
			Successors.  All obligations of the Company under the Program, with respect to incentive bonus payouts, shall be binding on any successor to the Company.

			
	
			
				 5.3
			Nontransferability of Bonus.  No incentive bonus to be awarded under the Program may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.

			
	
			
				 5.4
			Severability.  In the event any provision of the Program shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Program, and the Program shall be construed and enforced as if the illegal or invalid provision had not been included.

			
	
			
				 5.5
			Governing Law and Entire Terms.  The Program and any incentive bonuses shall be construed in accordance with and governed by the laws of the State of Texas, but without regard to its conflict of law provisions.  Further, the Program (as may be amended by the Committee in writing) constitutes the entire understanding with respect to any incentive bonus and shall supersede any prior or subsequent oral representations.

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