Document:

EX-10.57

Exhibit 10.57

ITT CORPORATION

2003 EQUITY INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT (Non Band A)

THIS AGREEMENT (the “Agreement”), effective as of the XX day of ___, 20XX, 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 (month, day, year) (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 of common stock of the Company (the “Option”), at the purchase
price of $XX.XX 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 (month, day, year) or, if the
Optionee’s employment terminates before that date, on the date specified in subsection
(e) 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(e), the Option shall vest in three
installments as follows:

	 	(i)	 	1/3 of the Option shall vest on (month, day, year),
	 
	 	(ii)	 	1/3 of the Option shall vest on (month, day, year), and
	 
	 	(iii)	 	1/3 of the Option shall vest on (month, day year);

2009 Option Agreement-Final-DLB03-09 General-Filed

 

 

	 	 	 	Subject to subsections 2(a) and 2(e), 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 and Tax Withholding. Permissible methods for
payment of the Exercise Price and for satisfaction of tax withholding obligations upon
exercise of the Option shall be as described in Section 6.6 and Article 14 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 the Option by
way of a 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.
	 
	 	(e)	 	Effect of Termination of Employment.
	 
	 	 	 	If the Optionee’s employment terminates before (month, day, year — option
expiration date), 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 (month, day, year — option expiration date), 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 (month, day, year — option
expiration date), 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 (month, day, year — option expiration
date), 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(e)(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.

2009 Option Agreement-Final-DLB03-09 General-Filed

 

 

	 	(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 (month, day, year — option expiration date), 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(e)(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 (month, day, year — option expiration date).
	 
	 	 	 	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

2009 Option Agreement-Final-DLB03-09 General-Filed

 

 

	 	 	 	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.

	 	(f)	 	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.
	 
	 	(g)	 	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.
	 
	 	(h)	 	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 XX day of (month, year).

	 	 	 	 	 	 	 
	Agreed to:

	 	 	 	 	 	ITT Corporation
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 
	Optionee
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Dated:(month, day, year-grant date)
	 

	 	 

	 	 	 	 
	Enclosures
	 	 	 	 	 	 

2009 Option Agreement-Final-DLB03-09 General-Filedexv10w1

EXHIBIT 10.1

AMENDMENT NO. 2

TO

EMPLOYMENT AGREEMENT

     The EMPLOYMENT AGREEMENT entered into by and between Apollo Group, Inc. (the “Company”) and
Gregory Cappelli (the “Executive”), dated March 31, 2007 and amended effective January 1, 2009 (as
amended, the “Agreement”), is hereby further amended effective April 24, 2009, as follows:

1. Section 2 of the Agreement is hereby amended to read in its entirety as follows:

(a) Position. (i) The Executive will be employed as, and hold the title of, the
Company’s Co-Chief Executive Officer (“Co-CEO”). The Executive and the Company’s
other Co-CEO shall have primary responsibility for the implementation and execution
of the Company’s strategic business plans and objectives as approved from time to
time by the Company’s Board of Directors (the “Board”). The Executive, together
with and the Company’s other Co-CEO, shall have the authority and responsibilities
of the position of Chief Executive Officer (“CEO”) as allocated between them in the
attached Exhibit 1. The authority and responsibilities contained in Exhibit 1 may be
altered by the Board from time to time if in its reasonable judgment the change is
necessary to assure a proper and effective organizational allocation of duties and
responsibilities of the CEO position between the Co-CEOs; provided, however, that
any such subsequent change in the duties and responsibilities of the Executive,
without his consent, that results in a material reduction of his duties and
responsibilities shall constitute grounds for a Good Reason termination. The
Executive shall also have such additional duties and responsibilities as directed
and approved from time to time by the Board. The Executive shall have the
responsibility and duty to work with and coordinate with the Company’s other Co-CEO.
The Executive shall report directly to the Board and shall have all the authority
needed to perform the duties and undertake the responsibilities of his position. The
Executive will be a member of the Board Chairman’s Cabinet and shall be involved in
all the Company’s major strategic decisions relating to the scope of his
responsibilities. The Executive will have the authority to hire appropriate
personnel as may be needed to carry out his duties.

  ii) Any disagreements between the Co-CEOs shall be resolved by the Executive
Committee and that Committee’s decision shall be final.

       (x) For purposes of this function of the Executive
Committee, the Executive Committee shall be chaired by John G.
Sperling or, in his absence, by Peter V. Sperling, in each case for
so long as he is a member of the Board. In connection with all
other business of the Executive Committee, the Co-CEOs will

 

generally share the chairmanship of the Committee with each Co-CEO
chairing every other regular meeting of the Committee.

       (y) The composition of the Executive Committee shall not be
changed without the approval of the Board and a majority of the then
serving Executive Committee members. Any changes made to the
membership of the Executive Committee (other than as a result of a
member ceasing employment with the Company) without prior Board
approval will automatically and immediately suspend the delegation
of the dispute resolution set forth herein, and the Board will
resolve all management disputes between the Co-CEOs until it has
approved the membership of the Executive Committee.

(iii) For so long as Executive is serving as a Co-CEO, Executive shall be
deemed to be a Principal Executive Officer for purposes of the Company’s filings
with the Securities and Exchange Commission, including periodic reports and other
filings under the Securities Exchange Act of 1934, as amended.

(b) Board Membership. The Company acknowledges that the Executive currently
serves as a member of the Board. The Company shall, during the remainder of the
Term, use its best efforts to have the Executive nominated for election and
re-election as a Board member at all meetings of the Company’s Class B shareholders
held during the Term at which Board members are to be elected.

(c) Obligations. The Executive shall devote his full business time and attention to
the business and affairs of the Company. During the term of this Agreement, the
Executive shall not engage in any other employment, service or consulting activity
without the prior written approval of the Board. The foregoing, however, shall not
preclude the Executive from (i) serving on any corporate, civic or charitable boards
or committees on which the Executive is serving on the Commencement Date, provided
those positions are listed in attached Schedule I, or on which he commences service
following the Commencement Date with the prior written approval of the Board or (ii)
managing personal investments, so long as such clause (i) and (ii) activities do not
interfere with the performance of the Executive’s responsibilities hereunder.

(d) Change in Co-CEO. If the Company’s other Co-CEO ceases to be employed by the
Company as Co-CEO, the Board may either appoint the Executive as the sole CEO of the
Company or may, in consultation with the Executive, appoint a replacement for the
Company’s other Co-CEO. If the Executive is not appointed the sole CEO, the Board
will give the Executive written notice of any tentative decision to appoint a
specified individual as Co-CEO before announcement and employment of that new
Co-CEO. The Executive shall have five (5) business

2

 

days from receipt of such written notice in which to submit his notice of
termination. Said notice shall be effected in accordance with Paragraphs 7(c) and
7(e) and shall be deemed a Notice of Termination for Good Reason for purposes of
Paragraph 8(b), but no Preliminary Notice of Good Reason or waiting period prior to
the effectiveness of such Notice of Termination shall be required under Paragraph
7(c) as a condition to the effectiveness of such notice, and such termination shall
accordingly be effective immediately upon the Company’s receipt of the notice of
termination. Failure of the Executive to provide the above notice of termination
within the applicable five (5) day period shall be deemed an acceptance of the new
Co-CEO, and thereafter the Executive will not have the right to assert that the
appointment of the new Co-CEO constitutes grounds for a Good Reason termination
hereunder. If Executive becomes the sole CEO, he shall continue to report directly
to the Board, with such duties, responsibilities and authorities as are commensurate
with such position, and any allocation of responsibilities set forth in attached
Exhibit 1 shall cease to apply. The appointment of the Executive as sole CEO shall
not be considered Good Reason under Section 7.

2. Section 3(a) of the Agreement is hereby amended in its entirety to read as follows:

(a) Base Salary. The Company agrees to pay or cause to be paid to the Executive an
annual base salary at the rate of $600,000 less applicable withholding. This base
salary will be subject to annual review and may be increased from time to time by
the Compensation Committee of the Board of Directors (the “Compensation Committee”)
upon consideration of such factors as the Executive’s responsibilities, compensation
of similar executives within the Company and in other companies, performance of the
Executive and other pertinent factors. The Executive’s annual rate of base salary,
as it may be increased from time to time, will be hereinafter referred to as the
“Base Salary”. Such Base Salary will be payable in accordance with the Company’s
customary practices applicable to its executives.

     3. Except as modified by this Amendment, all the terms and provisions of the Agreement shall
continue in full force and effect.

     IN WITNESS WHEREOF, Apollo Group, Inc. has caused this Amendment to be executed on its behalf
by its duly-authorized officer on the date indicated below, and the Executive has executed this
Amendment on the date indicated below.

	 	 	 	 	 	 	 	 	 
	GREGORY CAPPELLI	 	 	 	APOLLO GROUP, INC.
	 
	 	 	 	 	 	 	 	 
	/s/ Gregory Cappelli
	 	 	 	By:
	 	/s/ Joseph L. D’Amico
	 

	 	 
	 	 	 	 
 
	Date:

	 	April 24, 2009
	 	 	 	Title:
	 	President and Chief Operating Officer
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Date:
	 	April 24, 2009

3

 

Exhibit 1

	External
Communi-cations
Global Strategy
Apollo Global
IR
Operations
Legal
Human Resources
Ombuds
Corporate
Development
Financial
Cappelli
Edelstein
Board

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