Document:

exv10w02

    EXHIBIT 10.02

 

    ITT
    CORPORATION

    2003 EQUITY INCENTIVE PLAN

    2011 NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

 

    THIS AGREEMENT (the “Agreement”), effective as of the
    3rd day of March, 2011, by and between ITT Corporation (the
    “Company”) and name (the “Optionee”),
    WITNESSETH:

 

    WHEREAS, the Optionee is now employed by the Company or an
    Affiliate (as defined in the Company’s 2003 Equity
    Incentive Plan, as amended and restated as of March 1, 2008
    (the “Plan”)) as an employee, and in recognition of
    the Optionee’s valued services, the Company, through the
    Compensation and Personnel Committee of its Board of Directors
    (the “Committee”), desires to provide an opportunity
    for the Optionee to acquire or enlarge stock ownership in the
    Company, pursuant to the provisions of the Plan.

 

    NOW, THEREFORE, in consideration of the terms and conditions set
    forth in this Agreement and the provisions of the Plan, a copy
    of which is attached hereto and incorporated herein as part of
    this Agreement, and any administrative rules and regulations
    related to the Plan as may be adopted by the Committee, the
    parties hereto hereby agree as follows:

 

    1. Grant of Options.  In accordance
    with, and subject to, the terms and conditions of the Plan and
    this Agreement, the Company hereby confirms the grant on
    March 3, 2011, (the “Grant Date”) to the Optionee
    of the option to purchase from the Company all or any part of an
    aggregate of X,XXX Shares (the “Option”), at
    the purchase price of $57.68 per Share (the “Option
    Price” or “Exercise Price”). The Option shall be
    a Nonqualified Stock Option.

 

    2. Terms and Conditions.  It is
    understood and agreed that the Option is subject to the
    following terms and conditions:

 

    (a) Expiration Date.  The Option shall
    expire on March 3, 2021, or, if the Optionee’s
    employment terminates before that date, on the date specified in
    subsection (f) below.

 

    (b) Exercise of Option.  The Option may
    not be exercised until it has become vested.

 

    (c) Vesting.  Subject to subsections 2(a)
    and 2(f), the Option shall vest in three installments as follows:

 

    (i) 1/3 of the Option shall vest on March 3, 2012,

 

    (ii) 1/3 of the Option shall vest on March 3,
    2013, and

 

    (iii) 1/3 of the Option shall vest on March 3, 2014;

 

    Subject to subsections 2(a) and 2(f), to the extent not earlier
    vested pursuant to paragraphs (i), (ii), and (iii) of this
    subsection (c), the Option shall vest in full upon an
    Acceleration Event (as defined in the Plan).

 

    (d) Payment of Exercise
    Price.  Permissible methods for payment of the
    Exercise Price upon exercise of the Option are described in
    Section 6.6 of the Plan, or, if the Plan is amended,
    successor provisions. In addition to the methods of exercise
    permitted by Section 6.6 of the Plan, the Optionee may
    exercise all or part of the Option by way of
    (i) broker-assisted cashless exercise in a manner
    consistent with the Federal Reserve Board’s
    Regulation T, unless the Committee determines that such
    exercise method is prohibited by law, or
    (ii) net-settlement, whereby the Optionee directs the
    Company to withhold Shares that otherwise would be issued upon
    exercise of the Option having an aggregate Fair Market Value on
    the date of the exercise equal to the Exercise Price, or the
    portion thereof being exercised by way of net-settlement
    (rounding up to the nearest whole Share).

 

    (e) Tax Withholding.  The Company shall
    have the power and the right to deduct or withhold, or require
    the Optionee to remit to the Company, all applicable federal,
    state, and local taxes, domestic or foreign, required by law or
    regulation to be withheld with respect to the exercise of the
    Option. The Optionee may elect to satisfy the withholding
    requirement, in whole or in part, by having the Company withhold
    Shares that otherwise would be issued upon exercise of the
    Option, with the number of Shares withheld having a Fair Market
    Value on the date the tax is to be determined equal to the
    minimum statutory total tax that could be imposed on the
    transaction (rounding up to the nearest whole Share). Any such
    election shall be subject to any restrictions or limitations
    that the Committee, in its sole discretion, deems appropriate.

 

    (f) Effect of Termination of Employment.

 

    If the Optionee’s employment terminates before
    March 3, 2021, the Option shall expire on the date set
    forth below, as applicable:

 

    (i) Termination due to Death.  If the
    Optionee’s employment is terminated as a result of the
    Optionee’s death, the Option shall expire on the earlier of
    March 3, 2021 or the date three years after the termination
    of the Optionee’s employment due to death. If all or any
    portion of the Option is not vested at the time of the
    Optionee’s termination of employment due to death, the
    Option shall immediately become 100% vested.

 

    (ii) Termination due to Disability.  If
    the Optionee’s employment is terminated as a result of the
    Optionee’s Disability (as defined below), the Option shall
    expire on the earlier of March 3, 2021 or the date five
    years after the termination of the Optionee’s employment
    due to Disability. If all or any portion of the Option is not
    vested at the time of the termination of the Optionee’s
    employment due to Disability, the Option shall immediately
    become 100% vested.

 

    (iii) Termination due to Retirement.  If
    the Optionee’s employment is terminated as a result of the
    Optionee’s Retirement (as defined below), the Option shall
    expire on the earlier of March 3, 2021 or the date five
    years after the termination of the Optionee’s employment
    due to Retirement. If all or any portion of the Option is not
    vested at the time of the Optionee’s termination of
    employment due to Retirement, a prorated portion of the unvested
    portion of the Option shall immediately vest as of the date of
    the termination of employment (see “Prorated Vesting Upon
    Retirement” below). Any remaining unvested portion of the
    Option shall expire as of the date of the termination of the
    Optionee’s employment. For purposes of this subsection
    2(f)(iii), the Optionee shall be considered employed during any
    period in which the Optionee is receiving severance payments
    (disregarding any delays required to comply with tax or other
    requirements), and the date of the termination of the
    Optionee’s employment shall be the last day of any such
    severance period.

 

    (iv) Cause.  If the Optionee’s
    employment is terminated by the Company (or an Affiliate, as the
    case may be) for cause (as determined by the Committee), the
    vested and unvested portions of the Option shall expire on the
    date of the termination of the Optionee’s employment.

 

    (v) Voluntary Termination or Other Termination by the
    Company.  If the Optionee’s employment is
    terminated by the Optionee or terminated by the Company (or an
    Affiliate, as the case may be) for other than cause (as
    determined by the Committee), and not because of the
    Optionee’s Retirement, Disability or death, the vested
    portion of the Option shall expire on the earlier of
    March 3, 2021 or the date three months after the
    termination of the Optionee’s employment. Any portion of
    the Option that is not vested (or the entire Option, if no part
    was vested) as of the date the Optionee’s employment
    terminates shall expire immediately on the date of termination
    of employment, and such unvested portion of the Option (the
    entire Option, if no portion was vested on the date of
    termination) shall not thereafter be exercisable. For purposes
    of this subsection 2(f)(v), the Optionee shall be considered
    employed during any period in which the Optionee is receiving
    severance payments, and the date of the termination of the
    Optionee’s employment shall be the last day of any such
    severance period.

 

    Notwithstanding the foregoing, if an Optionee’s employment
    is terminated on or after an Acceleration Event (A) by the
    Company (or an Affiliate, as the case may be) for other than
    cause (as determined by the Committee), and not because of the
    Optionee’s Retirement, Disability, or death, or (B) by
    the Optionee because the Optionee in good faith believed that as
    a result of such Acceleration Event he or she was unable
    effectively to discharge his or her present duties or the duties
    of the position the Optionee occupied just prior to the
    occurrence of such Acceleration Event, the Option shall in no
    event expire before the earlier of the date that is
    7 months after the Acceleration Event or March 3, 2021.

 

    Retirement.  For purposes of this Agreement,
    the term “Retirement” shall mean the termination of
    the Optionee’s employment if, at the time of such
    termination, the Optionee is eligible to commence receipt of
    retirement benefits under a traditional formula defined benefit
    pension plan maintained by the Company or an Affiliate (or would
    be eligible to receive such benefits if he or she were a
    participant in such a traditional formula defined benefit
    pension plan).

 

    Disability.  For purposes of this Agreement,
    the term “Disability” shall mean the complete and
    permanent inability of the Optionee to perform all of his or her
    duties under the terms of his or her employment, as determined
    by the Committee upon the basis of such evidence, including
    independent medical reports and data, as the Committee deems
    appropriate or necessary.

 

    Prorated Vesting Upon Retirement.  The prorated
    portion of an Option that vests upon termination of the
    Optionee’s employment due to the Optionee’s Retirement
    shall be determined by multiplying the total number of unvested
    Shares subject

 

    to the Option at the time of the termination of the
    Optionee’s employment by a fraction, the numerator of which
    is the number of full months the Optionee has been continually
    employed since the Grant Date and the denominator of which is
    36. For this purpose, full months of employment shall be based
    on monthly anniversaries of the Grant Date, not calendar months.

 

    (g) Compliance with Laws and
    Regulations.  The Option shall not be exercised at
    any time when its exercise or the delivery of Shares hereunder
    would be in violation of any law, rule, or regulation that the
    Company may find to be valid and applicable.

 

    (h) Optionee Bound by Plan and Rules.  The
    Optionee hereby acknowledges receipt of a copy of the Plan and
    this Agreement and agrees to be bound by the terms and
    provisions thereof as amended from time to time. The Optionee
    agrees to be bound by any rules and regulations for
    administering the Plan as may be adopted by the Committee during
    the life of the Option. Terms used herein and not otherwise
    defined shall be as defined in the Plan.

 

    (i) Governing Law.  This Agreement is
    issued, and the Option evidenced hereby is granted, in White
    Plains, New York, and shall be governed and construed in
    accordance with the laws of the State of New York, excluding any
    conflicts or choice of law rule or principle that might
    otherwise refer construction or interpretation of this Agreement
    to the substantive law of another jurisdiction.

 

    By signing a copy of this Agreement, the Optionee
    acknowledges that s/he has received a copy of the Plan, and that
    s/he has read and understands the Plan and this Agreement and
    agrees to the terms and conditions thereof. The Optionee further
    acknowledges that the Option awarded pursuant to this Agreement
    must be exercised prior to its expiration as set forth herein,
    that it is the Optionee’s responsibility to exercise the
    Option within such time period, and that the Company has no
    further responsibility to notify the Optionee of the expiration
    of the exercise period of the Option.

 

    IN WITNESS WHEREOF, the Company has caused this instrument to be
    executed by its Chairman, President and Chief Executive Officer,
    or a Vice President, as of the 3rd day of March, 2011.

 

	 	 	 
	

    Agreed to:

	
 
	
    ITT Corporation

	
 
	
 
	
 

	
    

	
 
	
    /s/ STEVEN R. LORANGER

	
    Optionee

    (Online acceptance constitutes agreement)
	
 
	
 

	
 
	
 
	
 

	

    Dated: ­
    ­

	
 
	
    Dated: March 3, 2011

 

    Enclosuresexv10w03

 

    EXHIBIT 10.03

 

    ITT
    CORPORATION

    2003 EQUITY INCENTIVE PLAN

    RESTRICTED STOCK UNIT AGREEMENT

 

 

    THIS AGREEMENT (the “Agreement”), effective as of the
    3RD day

    of March, 2011, by and between ITT Corporation (the
    “Company”) and [name] (the
    “Grantee”), WITNESSETH:

 

    WHEREAS, the Grantee is now employed by the Company or an
    Affiliate (as defined in the Company’s 2003 Equity
    Incentive Plan (the “Plan”)) as an employee, and in
    recognition of the Grantee’s valued services, the Company,
    through the Compensation and Personnel Committee of its Board of
    Directors (the “Committee”), desires to provide an
    inducement to remain in service of the Company and as an
    incentive for increased efforts during such service pursuant to
    the provisions of the Plan.

 

    NOW, THEREFORE, in consideration of the terms and conditions set
    forth in this Agreement and the provisions of the Plan, a copy
    of which is attached hereto and incorporated herein as part of
    this Agreement, and any administrative rules and regulations
    related to the Plan as may be adopted by the Committee, the
    parties hereto hereby agree as follows:

 

    1. Grant of Restricted Stock
    Units.  In accordance with, and subject
    to, the terms and conditions of the Plan and this Agreement, the
    Company hereby confirms the grant on March 3, 2011
    (the “Grant Date”) to the Grantee of X,XXX
    Restricted Stock Units. The Restricted Stock Units are
    notional units of measurement denominated in Shares of common
    stock (i.e., one Restricted Stock Unit is equivalent in
    value to one share of common stock).

 

    The Restricted Stock Units represent an unfunded, unsecured
    right to receive Shares (and dividend equivalent payments
    pursuant Section 2(b) hereof) in the future if the
    conditions set forth in the Plan and this Agreement are
    satisfied.

 

    2. Terms and Conditions.  It
    is understood and agreed that the Restricted Stock Units are
    subject to the following terms and conditions:

 

    (a) Restrictions.  Except as otherwise
    provided in the Plan and this Agreement, neither this Award nor
    any Restricted Stock Units subject to this Award may be sold,
    assigned, pledged, exchanged, transferred, hypothecated or
    encumbered, other than to the Company as a result of forfeiture
    of the Restricted Stock Units.

 

    (b) Voting and Dividend Equivalent
    Rights.  The Grantee shall not have any privileges
    of a stockholder of the Company with respect to the Restricted
    Stock Units or any Shares that may be delivered hereunder,
    including without limitation any right to vote such Shares or to
    receive dividends, unless and until such Shares are delivered
    upon vesting of the Restricted Stock Units. Dividend equivalents
    shall be earned with respect to each Restricted Stock Unit that
    vests. The amount of dividend equivalents earned with respect to
    each such Restricted Stock Unit that vests shall be equal to the
    total dividends declared on a Share where the record date of the
    dividend is between the Grant Date of this Award and the date a
    Share is issued upon vesting of the Restricted Stock Unit. Any
    dividend equivalents earned shall be paid in cash to the Grantee
    when the Shares subject to the vested Restricted Stock Units are
    issued. No dividend equivalents shall be earned or paid with
    respect to any Restricted Stock Units that do not vest. Dividend
    equivalents shall not accrue interest.

 

    (c) Vesting of Restricted Stock Units and
    Payment.  Subject to earlier vesting pursuant to
    subsections 2(d) and 2(e) below, the Restricted Stock Units
    shall vest (meaning the Period of Restriction shall lapse and
    the Restricted Stock Units shall become free of the forfeiture
    provisions in this Agreement) on March 3, 2014,
    provided the Grantee has been continuously employed by the
    Company or an Affiliate on a full-time basis from the Grant Date
    through the date the Restricted Stock Units vest. Except as
    provided in subsections 2(i)(i) and 2(i)(ii) below, upon vesting
    of the Restricted Stock Units (including vesting pursuant to
    subsections 2(d) or 2(e) below), the Company will deliver to the
    Grantee (i) one Share for each vested Restricted Stock
    Unit, with any fractional Shares resulting from proration
    pursuant to subsection 2(e)(ii) to be rounded to the nearest
    whole Share (with 0.5 to be rounded up) and (ii) an amount
    in cash attributable to any dividend equivalents earned in
    accordance with subsection 2(b) above, less any Shares withheld
    in accordance with subsection 2(f) below.

 

    (d) Effect of Acceleration Event.  The
    Restricted Stock Units shall vest in full upon an Acceleration
    Event.

 

    (e) Effect of Termination of
    Employment.  If the Grantee’s employment with
    the Company and its Affiliates is terminated for any reason and
    such termination constitutes a “separation from
    service” within the meaning of Section 409A of

 

    the Code and any related regulations or other effective guidance
    promulgated thereunder (“Section 409A”), any
    Restricted Stock Units that are not vested at the time of such
    separation from service shall be immediately forfeited except as
    follows:

 

    (i) Separation from Service due to Death or
    Disability.  If the Grantee’s separation from
    service is due to death or Disability (as defined below), the
    Restricted Stock Units shall immediately become 100% vested as
    of such separation from service. For purposes of this Agreement,
    the term “Disability” shall mean the complete and
    permanent inability of the Grantee to perform all of his or her
    duties under the terms of his or her employment, as determined
    by the Committee upon the basis of such evidence, including
    independent medical reports and data, as the Committee deems
    appropriate or necessary.

 

    (ii) Separation from Service due to Retirement or
    Separation from Service by the Company for Other than
    Cause.  If the Grantee’s separation from
    service is due to Retirement (as defined below) or an
    involuntary separation from service by the Company (or an
    Affiliate, as the case may be) for other than cause (as
    determined by the Committee), a prorated portion of the
    Restricted Stock Units shall immediately vest as of such
    separation from service. For these purposes,

 

    A. the prorated portion of the Restricted Stock Units shall
    be determined by multiplying the total number of Restricted
    Stock Units subject to this Award by a fraction, the numerator
    of which is the number of full months during which the Grantee
    has been continually employed since the Grant Date, together
    with any period during which the Grantee is entitled to receive
    severance in the form of salary continuation (not to exceed 36
    in the aggregate), and the denominator of which is 36 (for
    avoidance of doubt, the period during which the Grantee may
    receive severance in the form of salary continuation or
    otherwise shall not affect the determination of the date of the
    Grantee’s separation from service or the date of delivery
    of any Shares or dividend equivalent payments); and

 

    B. full months of employment shall be based on monthly
    anniversaries of the Grant Date, not calendar months.

 

    For purposes of this Agreement, the term “Retirement”
    shall mean the Grantee’s separation from service if, at the
    time of such separation from service, the Grantee is eligible to
    commence receipt of retirement benefits under a traditional
    formula defined benefit pension plan maintained by the Company
    or an Affiliate (or would be eligible to receive such benefits
    if he or she were a participant in such traditional formula
    defined benefit pension plan).

 

    (f) Tax Withholding.  In accordance with
    Article 14 of the Plan, the Company may make such
    provisions and take such actions as it may deem necessary for
    the withholding of all applicable taxes attributable to the
    Restricted Stock Units and any related dividend equivalents.
    Unless the Committee determines otherwise, the minimum statutory
    tax withholding required to be withheld upon delivery of the
    Shares and payment of dividend equivalents shall be satisfied by
    withholding a number of Shares having an aggregate Fair Market
    Value equal to the minimum statutory tax required to be
    withheld. If such withholding would result in a fractional Share
    being withheld, the number of Shares so withheld shall be
    rounded up to the nearest whole Share. Notwithstanding the
    foregoing, the Grantee may elect to satisfy such tax withholding
    requirements by timely remittance of such amount by cash or
    check or such other method that is acceptable to the Company,
    rather than by withholding of Shares, provided such election is
    made in accordance with such conditions and restrictions as the
    Company may establish. If FICA taxes are required to be withheld
    while the Award is outstanding, such withholding shall be made
    in a manner determined by the Company.

 

    (g) Grantee Bound by Plan and Rules.  The
    Grantee hereby acknowledges receipt of a copy of the Plan and
    this Agreement and agrees to be bound by the terms and
    provisions thereof. The Grantee agrees to be bound by any rules
    and regulations for administering the Plan as may be adopted by
    the Committee prior to the date the Restricted Stock Units vest.
    Terms used herein and not otherwise defined shall be as defined
    in the Plan.

 

    (h) Governing Law.  This Agreement is
    issued, and the Restricted Stock Units evidenced hereby are
    granted, in White Plains, New York, and shall be governed and
    construed in accordance with the laws of the State of New York,
    excluding any conflicts or choice of law rule or principle that
    might otherwise refer construction or interpretation of this
    Agreement to the substantive law of another jurisdiction.

 

    (i) Section 409A Compliance.  To the
    extent applicable, it is intended that the Plan and this
    Agreement comply with the requirements of Section 409A, and
    the Plan and this Agreement shall be interpreted accordingly.

 

    (i) If it is determined that all or a portion of the Award
    constitutes deferred compensation for purposes of
    Section 409A, and if the Grantee is a “specified
    employee,” as defined in Section 409A(a)(2)(B)(i) of
    the Code, at the time of

 

    the Grantee’s separation from service, then, to the extent
    required under Section 409A, any Shares that would
    otherwise be distributed (along with the cash value of all
    dividend equivalents that would be payable) upon the
    Grantee’s separation from service, shall instead be
    delivered (and, in the case of the dividend equivalents, paid)
    on the earlier of (x) the first business day of the sixth
    month following the date of the Grantee’s separation from
    service or (y) the Grantee’s death.

 

    (ii) If it is determined that all or a portion of the Award
    constitutes deferred compensation for purposes of
    Section 409A, upon an Acceleration Event that does not
    constitute a “change in the ownership” or a
    “change in the effective control” of the Company or a
    “change in the ownership of a substantial portion of a
    corporation’s assets” (as those terms are used in
    Section 409A), the Restricted Stock Units shall vest at the
    time of the Acceleration Event, but distribution of any
    Restricted Stock Units (or related dividend equivalents) that
    constitute deferred compensation for purposes of
    Section 409A shall not be accelerated (i.e.,
    distribution shall occur when it would have occurred absent the
    Acceleration Event).

 

    IN WITNESS WHEREOF, the Company has caused this instrument to be
    executed by its Chairman, President and Chief Executive Officer,
    or a Vice President, as of the
    3rd

    day of March, 2011.

 

	 	 	 
	

    Agreed to:

	
 
	
    ITT Corporation

	
 
	
 
	
 

	
    

	
 
	
    /s/ STEVEN R. LORANGER

	
    Grantee

    (Online acceptance constitutes agreement)
	
 
	
 

	
 
	
 
	
 

	

    Dated: ­
    ­

	
 
	
    Dated: March 3, 2011

 

    Enclosures

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