Document:

EX-10.1

 Exhibit 10.1 

 

			
	 HARMAN
  
 400 ATLANTIC STREET
  
 STAMFORD,
CONNECTICUT
  
 06901 USA
	  	

 March 6, 2013 
 Personal & Confidential 
 Ralph Santana 

[Address Intentionally Omitted] 
 Dear Ralph:

 On behalf of HARMAN International Industries, Incorporated (“HARMAN”), I am pleased to submit to you an offer for the position of
Chief Marketing Officer. In this capacity you will report directly to Dinesh Paliwal, Chief Executive Officer and you will be a member of the HARMAN Executive Committee. You will be located at our Stamford, Connecticut office. This offer provides
the following: 
 Start Date: Your start date will be April 1, 2013. 

Sign on Equity Grant: Subject to the approval of the Compensation and Option Committee of the Board of Directors, you will receive on your
start date a one-time equity award of 10,949 stock options under the terms of HARMAN’s 2012 Stock Option and Incentive Plan (Plan) which provides vesting of stock options ratably over a three year period from your start date. 

Base Salary: Your annual base salary will be $375,000 payable in accordance with our corporate payroll schedule. 

Bonus: Beginning with fiscal year 2013, you will be eligible to participate in the Management Incentive Compensation (MIC) program with a
target bonus opportunity equal to 50% of your base salary and a 100% maximum. This bonus program is based upon HARMAN’s achievement of its business plan, as well as your achievement of personal performance goals. This bonus will be paid on
a pro-rata basis for fiscal year 2013 as of your actual hire date. 
 Long Term Incentive Program: You will be eligible to
participate in HARMAN’s long-term incentive program at a level commensurate to your position. The next general grant is expected to be in September 2013. 
 Car Allowance: You will receive a car allowance of $1,500 per month paid in accordance with our regular payroll schedule. 
 Vacation: You will be eligible for accrual of four (4) weeks of vacation annually. 
 Other Benefits: Additional benefits, as defined by Company policy and governing plan documents, currently include medical, dental, vision, life insurance, short and long-term disability
insurance, tuition reimbursement, 401(k) Retirement Savings Plan and all Company-paid holidays. Eligibility to participate in these benefits commences as of your date of hire. 
 The Company will, in connection with your employment, withhold from any compensation and benefits payable to you all federal, state, city and other taxes as requested by you or that the Company is
required to withhold pursuant to any law or government regulation or ruling. 

 HARMAN is not hereby offering you lifetime employment or employment for a fixed or implied period of time.
Either you or HARMAN may terminate your employment at any time, with or without cause or notice. The at-will nature of your employment relationship cannot be changed except in a written document signed by you and me. Except as otherwise set forth
above, upon termination of your employment, HARMAN will have no further obligations to you under this letter agreement. 
 Any dispute
concerning termination of your employment shall be resolved by final and binding arbitration before a neutral arbitrator. The arbitrator shall be selected by mutual agreement or in accordance with the procedures of the American Arbitration
Association and the employment arbitration rules of the American Arbitration Association shall apply. Such arbitration shall be conducted in Stamford, Connecticut or such other location as to which you and HARMAN agree. The law of Connecticut,
without regard to its choice of law rules, shall govern any such dispute, and the arbitrator shall not have authority to vary or alter the terms of this letter. 
 You will be expected to sign the Company’s standard form of Invention and Secrecy Agreement on your start date. 
 Your acceptance of this offer and subsequent employment at HARMAN will be conditional upon HARMAN’s receipt of an acceptable background screen report which must be completed prior to your start date.
Please complete and return the attached background authorization form and credit check form (if applicable) within the next three (3) business days. 
 Pursuant to the requirements of the Immigration Reform & Control Act of 1986, all new hires must provide proof of identity and employment eligibility. You will be required to provide satisfactory
documented evidence of your identity and eligibility for employment in the United States, in accordance with the requirements of U.S. law within three (3) business days of your date of hire. 

You acknowledge and agree that your acceptance of this offer will violate no agreements or arrangements with other individuals or entities, or duties to
your current employer. Please sign and return the original of this letter. You should retain one copy of this letter for your files. 
 I look
forward to working with you and welcome the contributions you will bring to this outstanding company. 
 Best regards, 

/s/ John Stacey 
 John Stacey 

Chief Human Resources Officer 
 HARMAN
International Industries, Incorporated 

  
 -2-

  
 I
hereby accept your offer of employment and agree to the provisions stated in this letter. I acknowledge and agree that this letter constitutes the entire agreement between HARMAN and me and supersedes all prior verbal or written agreements,
arrangements or understandings pertaining to my offer of employment. I understand that I am employed at will and that my employment can be terminated at any time, with or without cause, at the option of either the Company or me. 

I understand that I may be required to submit to a drug and alcohol screen. Refusal to submit to the drug and alcohol screen, or positive test results
for drugs and/or alcohol, will result in the conditional offer of employment being withdrawn.
 This offer of employment, if not previously
accepted by you, will automatically expire seven (7) days from the date of this letter, although additional time for consideration of the offer can be made available if you find it necessary. 

ACCEPTED AND AGREED: 
  

					
			
	/s/ Ralph Santana	 	 	 	3/6/13
	Ralph Santana	 		 	Date

  
 -3-EX-10.01

 EXHIBIT 10.01 
 ITT CORPORATION 2011 OMNIBUS INCENTIVE PLAN 
 PERFORMANCE UNIT AWARD AGREEMENT

 THIS AGREEMENT (the “Agreement”), effective as of the __ day of [month, Year X], by and between ITT Corporation (the “Company”) and
name (the “Participant”), WITNESSETH: 
 WHEREAS, the Participant is now employed by the Company or an Affiliate of
the Company, and in recognition of the Participant’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 Participant to
receive a performance-based long-term incentive award, pursuant to the provisions of the ITT Corporation 2011 Omnibus Incentive Plan, as approved by the Board of Directors on February 23, 2011 and effective May 11, 2011 (the
“Plan”). 
 NOW, THEREFORE, in consideration of the terms and conditions set forth in this Agreement and the provisions of the
Plan, which is incorporated herein as part of this Agreement and which provides definitions for capitalized terms not otherwise defined herein, 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 Award and Performance Period. In accordance with, and subject to, the terms and conditions of the Plan and this Agreement, the Company
hereby grants to the Participant this performance unit award (the “Award”). A performance unit corresponds to the right to receive one Share, subject to the terms of the Award. The target number of performance units subject to this Award
is              (the “Target Units”). The actual number of performance units that will be settled under this Award will depend upon the achievement of certain
performance goals described in Section 2 of this Agreement during the Performance Period, which for this Award commences January 1, [Year X] and ends December 31, [Year X + 2]. 

 

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

  

	 	(a)	 Determination of Performance Unit Award Payout. The “Performance Unit Award Payout” shall be the sum of the TSR Unit Payout and the ROIC Unit
Payout, each as described below. 

  

	 	(i)	 TSR Unit Payout. 50% of the Target Units shall be “TSR Target Units.” The performance units paid out with respect to the TSR Target Units
shall be determined in accordance with the following formula: 

     TSR Unit Payout = Payout
Factor X TSR Target Units 
 The “Payout Factor” is based on the Company’s Total Shareholder Return
(defined and measured as described below, the “TSR”) for the Performance Period relative to the TSR for each company in the S&P Mid-Cap Capital Goods Index (“Peer Group”), determined in accordance with the following table:

  

			
	  
 If
Company’s TSR rank against the
 S&P Mid-Cap Capital Goods Index is

 
	  	  

TSR Payout Factor
 (% of TSR
Target Units)
  

	  
 less than
the 35th percentile

 
	  	  

0%

	  
 at the
35th percentile

 
	  	  

50%

	  
 at the
50th percentile

 
	  	  

100%

	  
 at the
80th percentile or more

 
	  	  

200%

	  
 Actual results between the 35th percentile and the 80th
percentile numbers shown above are interpolated.
  

 Relative Total Shareholder Return 

The term “Total Shareholder Return” for a particular Performance Period means the rate of return (expressed as a
percentage) achieved with respect to the common stock of the Company and the common stock of each company in the Peer Group for such Performance Period. Total Shareholder Return includes the sum of two components: 

•        The cumulative percentage change in the common stock price from the
beginning of the Performance Period to the end of the Performance Period measured as the change between the average closing price of such common stock for the trading days occurring in the month ending December 31, [Year X – 1] and the
month ending December 31, [Year X + 2]; and 
 •        All dividends
paid and any other extraordinary shareholder actions paid with respect to a share of common stock during such Performance Period are accumulated and divided by the average closing prices for the trading days occurring in the month ending
December 31, [Year X – 1]. 
  

	 	(ii)	 ROIC Unit Payout. 50% of the Target Units shall be “ROIC Target Units.” The performance units paid out with respect to the ROIC Target Units
shall be determined in accordance with the following formula: 

     ROIC Unit Payout = Payout
Factor X ROIC Target Units 
 The “Payout Factor” is based on the Return on Invested Capital
(“ROIC”). ROIC refers to a percentage calculated by dividing (A) the after-tax earnings before the deduction of interest, tax and amortization expenses (“EBITA”), excluding special items, by (B) total assets (excluding
asbestos receivable) less non-interest bearing current liabilities, as of December 31, [Year X + 2]. The “Payout Factor” is determined in accordance with the following table: 

 

			
	  
 Return
on Invested Capital
  
	  	  

ROIC Payout Factor
 (% of
ROIC Target Units)
  

	  

TBD%
  
	  	  

50%

	  

TBD%
  
	  	  

100%

	  

TBD%
  
	  	  

200%

	  
 Actual results between the ROIC values shown above are interpolated.
  

	 	(b)	 Form and Timing of Payment of Award. Except as provided in subsection 2(d), payment with respect to an earned Performance Unit Award shall be made as
soon as practicable (but not later than March 15th) in the calendar year
following the close of the Performance Period. Payment shall be made in Shares in an amount equal to the Performance Unit Award Payout, as determined under subsection 2(a). 

 

	 	(c)	 Effect of Termination of Employment. Except as otherwise provided below, if the Participant’s employment with the Company or an Affiliate of the
Company is terminated for any reason prior to the end of the Performance Period, any Award subject to this Agreement shall be immediately forfeited. 

  

	 	(i)	 Termination due to Death or Disability. If the Participant’s termination of employment is due to death or Disability (as defined below), the Award
shall vest and will be payable at the time and in the form as provided in subsection 2(b) above and shall be based on the performance criteria set forth in subsection 2(a) above as measured for the entire Performance Period.

  

	 	(ii)	 Termination due to Retirement or Termination by the Company for Other than Cause. If the Participant’s termination of employment is due to
Retirement (as defined below) or if the Participant’s employment is terminated by the Company (or an Affiliate of the Company, as the case may be) for other than cause (as determined by the Committee), a prorated portion of the Award shall vest
(see “Prorated Vesting Upon Retirement or Termination by the Company for Other than Cause” below) and will be payable at the time and in the form as provided in subsection 2(b) above. For purposes of this subsection 2(c)(ii), the
Participant shall be considered employed during any period in which the Participant is receiving severance pay, and the date of the termination of the Participant’s employment shall be the last day of any such severance pay period.

  

	 	(iii)	 Retirement. For purposes of this Agreement, the term “Retirement” shall mean any termination of the Participant’s employment after
(A) the date the Participant attains age 55 and completes 10 or more years of Effective Service (as such term is defined in the ITT Corporation Retirement Savings Plan for Salaried Employees) or, if earlier, (B) the date the Participant
attains age 65. 

  

	 	(iv)	 Disability. For purposes of this Agreement, the term “Disability” shall mean the complete and permanent inability of the Participant 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.

  

	 	(v)	 Prorated Vesting upon Retirement or Termination by the Company for Other than Cause. The prorated portion of the Award that vests due to termination of
the Participant’s employment due to Retirement or by the Company for other than cause shall be determined by multiplying (i) the Performance Unit Award Payout determined pursuant to subsection 2(a) above for the entire Performance Period,
by (ii) a fraction, the numerator of which is the number of full months the Participant has been continually employed since the beginning of the Performance Period and the denominator of which is 36. For this purpose, full months of employment
shall be based on monthly anniversaries of the commencement of the Performance Period. 

	 	(d)	 Acceleration Event. Notwithstanding anything in the Plan to the contrary, upon the occurrence of an Acceleration Event during the Performance Period,
(i) a prorated portion of the Award shall vest based on actual performance through the date of the Acceleration Event (such prorated portion to be determined as provided below in this subsection 2(d)) and shall be paid within 30 days following
the Acceleration Event and (ii) the remaining portion of the Award (such remaining portion to be determined as provided below in this subsection 2(d)) shall vest and shall be paid within 30 days following the Acceleration Event. The prorated
portion of the Award that vests pursuant to subpart (i) in the prior sentence due to the Acceleration Event shall be determined by multiplying (A) the Performance Unit Award Payout determined pursuant to subsection 2(a) above for the
period beginning on the first day of the Performance Period and ending on the date preceding the date on which the Acceleration Event occurs (the “Prorated Period”), by (B) a fraction, the numerator of which is the number of calendar
days in the Prorated Period and the denominator of which is 1,095. The remaining portion of the Award that vests pursuant to subpart (ii) in the first sentence of this subsection 2(d) due to the Acceleration Event shall be determined by
multiplying (A) the Target Units by (B) a fraction, the numerator of which is the number of calendar days remaining in the Performance Period as of the date of the Acceleration Event (including day of the Acceleration Event) and the
denominator of which is 1,095. 

  

	 	(e)	 Tax Withholding. Payments with respect to Awards under the Plan shall be subject to applicable tax withholding obligations as described in Article 15
of the Plan, or, if the Plan is amended, successor provisions. 

  

	 	(f)	 No Shareholder Rights. The Participant shall not be entitled to any rights or privileges of ownership of Shares with respect to this Award unless and
until a Share is actually delivered to the Participant in settlement of this Award pursuant to this Agreement. 

  

	 	 (g)	 Participant Bound by Plan and Rules. The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement and agrees to be bound by the
terms and provisions thereof. The Participant agrees to be bound by any rules and regulations for administering the Plan as may be adopted by the Committee prior to the settlement of the Award subject to this Agreement. Capitalized terms used herein
and not otherwise defined shall be as defined in the Plan. 

  

	 	(h)	 Governing Law. This Agreement is issued 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. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its Chief Executive
Officer, President or a Vice President, as of the      day of [month, Year X]. 
  

											
	Agreed to:	 		 		 	ITT Corporation
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:
		 		 		 		 	Title:
				
	  
	 		 		 	
	Participant	 		 		 		 	
					
	Dated:	 	  
	 		 		 	Dated: [date]

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