Document:

exv10w2

 

Exhibit 10.2

RESTRICTED STOCK UNIT AGREEMENT

ANDREW CORPORATION

LONG-TERM INCENTIVE PLAN

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

WITNESSETH:

     WHEREAS, the Company adopted the Andrew Corporation Long-Term Incentive Plan (the “LTIP”) for
the purpose of providing incentives to selected key employees by making available to them
opportunities to acquire an equity interest in the Company; and

     WHEREAS, the Compensation and Human Resources Committee of the Board of Directors of the
Company (the “Committee”) has granted the Participant a Restricted Stock Unit Award under Section
10 of the LTIP;

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

     1. Grant. The Company hereby grants to the Participant an award of “Restricted Stock
Units” as specified in the “Award Schedule” attached as Exhibit A hereto. Each vested Restricted
Stock Unit shall entitle the Participant to one share of common stock, $0.01 par value, of the
Company (a “Share”), subject to the terms of the LTIP and this Agreement. Unless the context
clearly provides otherwise, the capitalized terms in this Agreement shall have the meaning ascribed
to such terms under the LTIP.

     2. Vesting; Termination of Employment. The Restricted Stock Units awarded under this
Agreement shall vest and become nonforfeitable in accordance with the following:

	 	(a)	 	Subject to the following provisions of this Section 2, the Restricted Stock
Units awarded hereunder shall vest and become nonforfeitable on the Vesting Date (as
defined in Exhibit A), based upon the level of achievement of the performance goals set
forth in Exhibit A, unless vested earlier under paragraphs (c) or (d) below, or
forfeited earlier under paragraph (b) or subparagraph (c)(i) below.
	 
	 	(b)	 	Unless the Committee determines otherwise in its sole discretion, if the
Participant’s employment with the Company terminates for any reason other than

 

 

death, Disability or Retirement prior to the Vesting Date, all Restricted Stock
Units shall be permanently forfeited on such termination date.

	 	(c)	 	If the Participant’s termination of employment occurs prior to the Vesting Date
by reason of death, Disability or Retirement, then the Participant’s Restricted Stock
Units shall not be forfeited as of such termination date. Instead, the Restricted
Stock Units awarded may vest as follows:

	 	(i)	 	Upon Retirement and subject to subparagraph (iii) below, the
number of Restricted Stock Units vesting on the Vesting Date, if any, shall be
determined in accordance with Exhibit A and, to the extent any Restricted Stock
Units become vested on such date, Shares shall be transferred to the
Participant (or his or her Beneficiary or estate, if applicable) at the same
time Shares are transferred to other Participants who have Restricted Stock
Units vesting on such Vesting Date. If the performance goal is not attained by
the end of the Performance Period, the Restricted Stock Units shall be
forfeited.
	 
	 	(ii)	 	Upon death or Disability and subject to subparagraph (iii)
below, the Target Base RSUs set forth in Exhibit A shall
become vested on such date and shall be transferred to the Participant
(or his or her Beneficiary or estate, if applicable) as soon as practicable
after such date.
	 
	 	(iii)	 	If the Participant’s termination of employment due to death,
Disability, or Retirement occurs on or after the Measurement Date, but prior to
the Vesting Date, the Participant shall receive the number of Restricted Stock
Units he or she would have received (determined in accordance with Exhibit A)
had he or she continued to be employed until the Vesting Date.

	 	(d)	 	Unless forfeited earlier under paragraph (b) or subparagraph (c)(i) above, the
Target Base RSUs shall vest and become nonforfeitable upon a Change in Control.

     All Restricted Stock Units shall be forfeited if the Participant’s employment is involuntarily
terminated for cause and could also be declared forfeited if the Participant engages in conduct
that, in the opinion of the Committee, adversely affects the Company. For purposes of this
Agreement, termination for cause means that the Participant (1) has engaged in conduct that
constitutes willful gross neglect or willful gross misconduct with respect to employment duties
that results in material economic harm to the Company, (2) has engaged in conduct that constitutes
willful failure to perform duties or (3) has been convicted of a felony that is materially
injurious to the Company.

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     3. Settlement of Restricted
 Stock Units. Restricted Stock Units shall be settled solely in
Shares of Company common stock. As soon as practicable after the
Measurement Date, the Participant shall be transferred one Share of
common stock for each Restricted Stock Unit vesting on such date.

     4. Tax Withholding. This Agreement is subject to all applicable Federal, state, local,
domestic, or foreign withholding taxes. The Company may require the Participant to pay the Company
an amount sufficient to satisfy such withholding requirements in cash or Shares. Alternatively, the
Company may withhold cash or Shares due or to become due under this Agreement.

     6. Rights Not Conferred. Nothing contained in the LTIP or in this Agreement shall
confer upon the Participant any right with respect to continued employment by the Company or any
affiliate or interfere in any way with the right of the Company to terminate the employment of the
Participant at any time. The Participant shall have none of the rights of a stockholder with
respect to the Restricted Stock Units until such time, if any, that Shares are delivered to the
Participant in settlement thereof.

     7. Agreement Not Assignable. This Agreement and the Restricted Stock Units awarded
hereunder are not transferable or assignable by the Participant; provided that no provision herein
shall prevent the designation of a Beneficiary for the Restricted Stock Units in the event of the
Participant’s death.

     8. Adjustments. If and to the extent that the number of outstanding shares of common
stock shall be increased or reduced in the event of a merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, reverse stock split, spin-off, combination,
repurchase or exchange of shares or other securities of the Company, or similar corporate
transaction, the number and kinds of shares subject to the Restricted Stock Units awarded hereunder
shall be proportionately adjusted by the Committee, whose determination shall be conclusive,
provided that any fractional share resulting from an adjustment hereunder shall be rounded to the
nearest whole number.

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

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

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

	 	 	 
	Via On-line Acceptance
	 	 
	 
	 	 
	 

Participant’s Signature

	 	 

	 	 	 	 	 
	ANDREW CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Ralph E. Faison	 	 
	 

	 	President and Chief Executive Officer	 	 
	 

	 	Andrew Corporation	 	 

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EXHIBIT A

2005 Restricted Stock Unit Award

Participant Name:                                                                                

Base Restricted Stock Units (“Base RSUs”) Awarded:                                        

     Subject to Section 2 of this Agreement, the Restricted Stock Units awarded under this
Agreement shall vest on the Vesting Date, in accordance with the following schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold Goal	 	Target Goal	 	Maximum Goal
	Return on Invested
Capital
	 	 	___%	 	 	 	___%	 	 	 	___%	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Resulting Payout*
	 	 	75%
	 	 	 	100%
	 	 	 	125%
	 
	 
	 	of Base RSUs
	 	of Base RSUs
	 	of Base RSUs

	 
	 	Vesting	 	Vesting	 	Vesting

 

			
	*	 	If the Threshold Goal is not attained as of the Measurement Date, the resulting payout percentage
shall be zero. In no event shall the resulting payout percentage exceed 125%, regardless of actual
achievement beyond the stated performance goals. The resulting payout percentage shall be adjusted,
pro rata, to reflect performance between Threshold and Target, and Target and Maximum. The
Committee, in its sole and absolute discretion, shall determine the extent to which the performance
goal has been met and may determine whether and to what extent to exclude extraordinary or
non-recurring items.

For purposes of this Exhibit A, the following terms shall have the following meanings:

“Measurement Date” shall mean September 30, 2008.

“Performance Period” means the period beginning October 1, 2005 and ending on the Measurement Date.

“Return on Invested Capital” shall mean the Company’s (i) net income for fiscal year 2008,
divided by (ii) invested capital (debt + equity) for fiscal year 2008, determined in
accordance with the Company’s normal accounting practices.

“Vesting Date” means the date of the Committee’s first regularly scheduled meeting following the
Measurement Date at which the Committee certifies the level of attainment of the performance goals.

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Exhibit 10.3

STOCK OPTION AGREEMENT

ANDREW CORPORATION

LONG TERM INCENTIVE PROGRAM

     THIS
AGREEMENT is made as of the ___day of
____________,
         (the “Grant Date”) between
ANDREW CORPORATION, a Delaware corporation (the “Company”), and (the “Optionee”).

WITNESSETH:

          WHEREAS, the Company adopted the Andrew Corporation Long Term Incentive Plan (the “LTIP”) for
the purpose of providing incentives to selected key employees by making available to them
opportunities to acquire shares of the common stock, $.01 par value, of the Company (the “Common
Stock”); and

     WHEREAS, the Compensation and Human Resources Committee of the Board of Directors of the
Company (the “Committee”) considers it desirable and in the best interests of the Company that the
Optionee be granted options to purchase Common Stock.

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

     1. Grant. The Company grants to the Optionee an option to purchase shares of Common
Stock at a price of $______ per share (the “Option Price”), on the terms and subject to the
conditions hereinafter set forth (the “Option”).

     2. Duration; Exercise. The duration of the Option shall be for the period beginning
on the Grant Date and continuing through the close of business on
_______________ (the “Option Period”). Except to
the extent otherwise provided in Section 3 and Section 6, this Option may be exercised with respect
to 25% of the shares of Common Stock awarded hereunder on each of the first, second, third and
fourth anniversaries of the Grant Date.

     3. Right to Exercise in Certain Events. Notwithstanding the provisions of Section 2
to the contrary, but subject to Section 6, the Option shall be fully exercisable if the Optionee’s
employment terminates (1) due to Retirement or Disability (as such terms are defined in the LTIP)
after not less than six months following the Grant Date, or (2) by reason of death. If the
Optionee terminates employment by reason of Retirement or Disability, the Option will be
exercisable for three years or, if earlier, until the end of the Option Period. If the Optionee
dies while employed by the Company or after terminating by reason of Retirement or Disability, the
Option will be exercisable by the Optionee’s Beneficiary (as defined in the LTIP) until the
earliest of one year after death, three years after termination due to Retirement or Disability, or
the end of the Option Period. The Optionee may designate a person, trust or other entity as the

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Optionee’s Beneficiary. No such designation, or any revocation or change thereof, is effective
unless made in writing on a form provided by the Committee and delivered to the Committee prior to
death. If the Optionee fails to properly designate a Beneficiary or the Optionee’s Beneficiary
fails to survive the Optionee, then the Optionee’s Beneficiary will be the Optionee’s estate. If
the Optionee terminates employment for any reason other than Retirement, Disability or death, the
Option will be exercisable (to the extent vested at termination of employment) until the earlier of
three months after termination of employment or the end of the Option Period, and any portion of
the Option which is not vested on such termination date shall be permanently forfeited. If the
Optionee dies during such period, the Optionee’s Beneficiary may exercise the Option (to the extent
vested and exercisable on the date of death) until the earlier of one year after death or the end
of the Option Period. In the event of a Change in Control (as defined in the LTIP), the Option
shall be fully vested and exercisable during the 90 days immediately thereafter.

     4. Purchase of Option or Option Shares by Company. Following the death of the
Optionee, the Company may, but need not, upon the request of the holder of the Option, purchase the
Option prior to its exercise at a price equal to the difference between the Fair Market Value, on
the date of such request, of the shares of Common Stock then subject to exercise and the Option
Price for such shares.

     5. Notice of Exercise. The Option, or any part of it, may be exercised electronically
in accordance with the on-line procedures established by our stock option administrator.
Information regarding the electronic exercise process is available at www.retireonline.com
or by contacting JP Morgan at 800-345-2345.

     6. Termination or Forfeiture of Option. (a) The Committee may forfeit this Option at
any time, regardless of whether the Option is vested or unvested at such time (except if the Option
has vested pursuant to a Change in Control), if the Committee in its sole discretion determines
that the Optionee has engaged in any activity in competition with the Company, disclosed or misused
the Company’s confidential information or trade secrets, hired Company employees or solicited them
to terminate employment with the Company, or engaged in any other activity or conduct that in the
Committee’s sole discretion is harmful to the interests of the Company. In addition to the
foregoing, the Optionee agrees to pay the Company the amount of any Option gain (net of any income
taxes paid thereon) realized by the Optionee from the prior exercise(s) of part or all of this
Option during the period beginning one year prior to the date of the Optionee’s termination of
employment and ending one year after the Optionee’s termination of employment.

     (b) By accepting this Agreement, the Optionee consents to a deduction by the Company from any
amounts that it owes the Optionee pursuant to this Agreement or any other plan, contract or
agreement, to the extent of any amount that the Optionee may owe the Company under subsection (a)
above. Whether or not the Company elects to make any such deduction, if the Company does not
recover the full amount owed by the Optionee, the Optionee agrees to immediately pay the unpaid
balance to the Company. The Company shall not be liable for any loss incurred by the Optionee with
respect to the exercise of the Option due to the decrease of the Common Stock’s Fair Market Value
pending final determination by the Committee of whether the Optionee has engaged in any activity
described in subsection (a) above.

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     (c) The Option may not be exercised if such exercise could constitute a violation of any
applicable federal, state or other law or regulation.

     7. Rights Not Conferred. The Option shall not be affected by any change in the nature
of the Optionee’s employment so long as the Optionee continues to be employed by the Company.
Nothing contained in the LTIP or in the Option shall confer upon the Optionee any right with
respect to continuance of employment by the Company or interfere in any way with the right of the
Company to terminate the employment of the Optionee at any time. The Optionee shall have none of
the rights of a stockholder with respect to the Option shares until full payment of the Option
Price and delivery of the certificate or certificates for such shares.

     8. Option Not Assignable. The Option is not transferable or assignable, and during
the Optionee’s lifetime is exercisable only by the Optionee or by the Optionee’s guardian or legal
representative; provided that no provision herein shall prevent the designation of a Beneficiary
for the Option in the event of the Optionee’s death.

     9. Adjustments. If and to the extent that the number of outstanding shares of Common
Stock shall be increased or reduced in the event of a merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, reverse stock split, spin-off, combination,
repurchase or exchange of shares, or similar corporate transaction, the number and kinds of shares
subject to the Option and the Option Price shall be proportionately adjusted by the Committee,
whose determination shall be conclusive; provided that any fractional share resulting from an
adjustment hereunder shall be rounded to the nearest whole number.

     10. Option Subject to LTIP. The granting of the Option is being made pursuant to the
LTIP and the Option shall be exercisable only in accordance with the applicable terms of the LTIP.
The LTIP contains certain definitions, restrictions, limitations and other terms and conditions all
of which shall be applicable to this Option. ALL OF THE PROVISIONS OF THE LTIP ARE INCORPORATED
HEREIN BY REFERENCE AND ARE MADE A PART OF THIS AGREEMENT IN THE SAME MANNER AS IF EACH AND EVERY
SUCH PROVISION WERE FULLY SET OUT HEREIN. Should the LTIP become void or unenforceable by
operation of law or judicial decision, this Agreement shall have no force or effect. Nothing set
forth in this Agreement is intended, nor shall any of its provisions be construed, to limit or
exclude any definition, restriction, limitation, or other term or condition of the LTIP as is
relevant to this Agreement and as may be specifically applied to it by the Committee. In the event
of a conflict in the provisions of this Agreement and the LTIP, as a rule of construction the terms
of the LTIP shall be deemed superior and apply. The Optionee hereby acknowledges receipt of a copy
of the LTIP.

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

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

Via On-Line Acceptance

 

Optionee’s Signature

ANDREW CORPORATION

	 	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Ralph E. Faison

President and Chief Executive Officer	 	 

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