Document:

exv10w7

Exhibit 10.7

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made as of October 28,
2010, by and between ReSearch Pharmaceutical Services, Inc., a Delaware corporation (the
“Company”), and Steven Bell (“Employee”). Any capitalized terms used herein and otherwise not
defined shall have the meanings assigned to them in Section 12 hereof.

In consideration of the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows:

1. Employment. The Company shall employ Employee, and Employee hereby accepts
employment with the Company, upon the terms and conditions set forth in this Agreement for the
period beginning on the date first set forth above and ending as provided in Section 4 hereof (the
“Term”).

2. Position and Duties.

(a) Employee shall serve as Executive Vice President of Finance and Chief Financial Officer of
the Company and in such capacities with the Company’s Subsidiaries as the Company may reasonably
request, and shall have the normal duties, responsibilities and authority of Executive Vice
President of Finance and Chief Financial Officer subject to the overall discretion and authority of
the Chief Executive Officer. Executive shall be based in the Company’s corporate headquarters in
Fort Washington, PA but may be required to travel from time to time as part of his employment.

(b) Employee shall report to the Chief Executive Officer of the Company, and Employee shall
devote his best efforts and his full business time and attention (except for permitted vacation
periods and reasonable periods of illness or other incapacity) to the business and affairs of the
Company and its Subsidiaries. Employee shall perform his duties and responsibilities to the best
of his abilities in a diligent, trustworthy, businesslike and efficient manner.

3. Base Salary and Benefits.

(a) During the Term, Employee shall be entitled to (i) receive a base salary of $310,000.00
per annum or such other higher rate as the Compensation Committee of the Board (the “Compensation
Committee”) may designate from time to time (the “Base Salary”), which shall be payable in regular
installments in accordance with the Company’s general payroll practices and shall be subject to
customary withholding and (ii) participate in all benefit plans, including medical, dental,
retirement, short- and long-term disability, of which premiums and fees will be fully paid by the
Company, and stock incentive and other such plans established by the Company from time to time for
executives or employees of the Company generally (“Benefits”). In addition, Employee shall be
eligible to receive an annual bonus in such amount as determined by the Compensation Committee or
the Board in its sole discretion.
If the Company’s fiscal year is the calendar year, unless otherwise deferred according to
Employee’s election pursuant to Section 3(c), such bonus shall be paid in the calendar year
following the fiscal year to which the bonus relates, and all such payments shall be completed by
March 15 of the payment year. If the Company’s fiscal year is other than a calendar year, all such
payments shall be completed by December 31 of the calendar year in which the Company’s fiscal year
ends.

 

 

 

(b) In addition to his Base Salary, Employee shall be entitled during the Term to participate
in any equity compensation plan established by the Company on terms to be determined by the
Compensation Committee or the Board.

(c) For any calendar year, Employee shall have the right, by giving written notice to the
Company at least 10 days prior to the beginning of such calendar year, to defer the payment of up
to 100 percent of the bonus Employee becomes entitled to for such calendar year. The deferred
bonus shall be unfunded for tax purposes and for the purposes of Title I of the Employee Retirement
Income Security Act of 1974, as amended. Employee shall have the status of a general unsecured
creditor of the Company with respect to the deferred bonus and this provision shall constitute a
mere promise by the Company to make payments in the future. Any amounts credited to Employee’s
deferred bonus account shall accrue interest pursuant to the terms of a deferred bonus agreement
acceptable to the Company and Employee. If Employee terminates employment with the Company, the
amount credited to his deferred bonus account shall be paid to him in a single-sum payment within
five business days following the last day of his employment with the Company. In the event of
Employee’s death, the amount credited to his deferred bonus account shall be paid to his spouse or,
if his spouse has predeceased him, to his estate, in a single-sum payment.

(d) During the Term, the Company shall pay on behalf of Employee a monthly automobile lease
payment in an amount not to exceed $1,000.00, along with reasonable expenses incurred for repairs,
maintenance, registration and insurance for such automobile.

(e) Employee shall earn five weeks of paid time off per year, accrued in accordance with the
Company’s vacation pay policy, and may use up to 10 paid sick days if necessary. Employee shall
also be entitled to 10 paid corporate holidays, annually. Employee shall not be entitled to be
paid for any days which remain unused at the end of any calendar year.

(f) The Company shall also reimburse Employee for all reasonable expenses incurred by him in
the course of performing his duties under this Agreement which are consistent with the Company’s
policies in effect from time to time with respect to travel, entertainment and other business
expenses including reimbursement for continuing professional education, subject to the Company’s
requirements with respect to approval, reporting and documentation of such expenses. Such
reimbursements shall be made in accordance with the Company’s general payroll practices.

4. Term.

(a) The Term shall end on April 26, 2011, except that the Term shall be automatically renewed
for successive one (1) year periods after the initial Term unless
terminated in writing by either the Company or Employee at least ninety (90) days prior to the
end of the Term or any renewal thereof; provided that (i) the Term and Employee’s
employment shall terminate prior to such date upon Employee’s death or permanent Disability and
(ii) Employee’s employment may be terminated by the Company or Employee at any time prior to such
date.

 

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(b) Employee’s employment may be terminated by the Company at any time for any reason. If
Employee’s employment is terminated by the Company without Cause or by Employee for Good Reason
during the Term of this Agreement, or if the Company elects not to renew this Agreement pursuant to
Section 4(a), Employee shall be entitled to Base Salary and Benefits for a period of eighteen (18)
months following the date of termination, and earned but unpaid bonuses, determined based on the
partial year in which the date of termination by the Company without Cause or by the Employee for
Good Reason occurs. In the event of a Change of Control, if Employee is terminated without Cause
or Employee terminates his employment for Good Reason at any time after the date which is three (3)
months before the closing of the transaction involving the Change of Control, or at any time
thereafter, Employee shall receive twenty four (24) months Base Salary and Benefits rather than the
eighteen (18) months described above, and earned but unpaid bonuses, calculated based on the
partial year in which the termination without Cause or for Good Reason occurs, if Employee is not
employed for the entire year prior to the date of termination. Any amount of Base Salary and any
bonus(es) the amount of which can be determined at the time Employee is terminated that are payable
under this Section 4(b) will be paid as follows: subject to applicable withholding, (i) fifty
percent (50%) of such amount shall be paid on the six (6) month anniversary of Employee’s
termination and (ii) the remaining fifty percent (50%) of such amount shall be paid on the nine (9)
month anniversary of Employee’s termination. If the Company’s fiscal year is the calendar year,
any bonus(es) that cannot be calculated at the time Employee is terminated that are payable under
this Section 4(b) will be paid in the calendar year following the fiscal year to which the
bonus(es) relate, and all such payments shall be completed by March 15 of the payment year. If the
Company’s fiscal year is other than a calendar year, all such bonus payments shall be completed by
December 31 of the calendar year in which the Company’s fiscal year ends. Notwithstanding anything
in this Agreement to the contrary, the Company shall have no obligation to pay any amounts payable
under this Section 4(b) during such times as Employee is in breach of Sections 6, 7, 8 or 9 hereof.
As a condition to the Company’s obligations (if any) to make severance payments pursuant to this
Section 4(b), Employee will execute and deliver a general release in form and substance reasonably
satisfactory to the Company.

(c) If this Agreement is terminated pursuant to Section 4(a)(i) above, Employee shall be
entitled to receive his Base Salary through the date of termination. Any such amounts payable
under this Section 4(c) will be payable at such times as such amounts would have been payable had
Employee not been terminated.

(d) If this Agreement is terminated by the Company for Cause or by Employee without Good
Reason, Employee shall be entitled to receive only his Base Salary through the date of termination,
and shall not be entitled to receive any other payments or Benefits under this Agreement. Any such
amounts payable under this Section 4(d) will be payable at such times as such amounts would have
been payable had Employee not been terminated.

 

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(e) During the period that Employee is entitled to payment of his Base Salary or other
payments under Section 4(b) above, the Company shall pay and maintain for Employee’s benefit
Employee’s participation and/or rights under the Company’s health, life and disability insurance
plans, as well as any other benefits then in effect. Employee’s entitlement to continued health
coverage under this section 4(e) shall include the continued coverage of his spouse and dependent
children, to the extent Employee’s spouse and dependent children were covered under the Company’s
health plan at the time of Employee’s termination. The COBRA health care continuation coverage
period under section 4980B of the Code shall run concurrently with the continued health coverage
provided under this Section 4(e). The Company may offset any amounts Employee owes it or its
Subsidiaries for liquidated claims against any amounts it owes Employee hereunder.

(f) If Employee’s employment is terminated by, or if Employee resigns his employment with, the
Company or any entity that is in the same controlled group as the Company for purposes of Sections
414(b) or 414(c) of the Code, Employee’s employment shall also automatically be terminated by, or
Employee shall also automatically resign his employment with, the Company and all entities that are
in the same controlled group as the Company for purposes of Sections 414(b) or 414(c) of the Code.

(g) Notwithstanding the preceding subsections, if Employee is a “specified employee,” as
defined in Treas. Reg. Section 1.409A-1(i), on the date his employment is terminated, any lump sum
payments or bonus payments due to be paid under this Section 4 during the first six months after
Employee’s termination of employment will instead be paid on the first day of the seventh month
following the month of such termination.

5. Possible Reduction in Payments. Following any Change of Control, if all or any
portion of the payments and other benefits provided to Employee under this Agreement, either alone
or together with other payments and benefits which Employee receives or is entitled to receive from
the Company, constitute an “excess parachute payment” within the meaning of Section 280G of the
Code and thus would result in the imposition of excise taxes on Employee under Section 4999 of the
Code, then to the extent the amount of payments and benefits described above would result in an
excess parachute payment, such payments and benefits shall be reduced to the extent necessary to
avoid the imposition of any such excise taxes.

6. Confidential Information. Employee acknowledges that the information, observations
and data obtained by him while employed by the Company and its Subsidiaries concerning the business
or affairs of the Company or any Subsidiary (“Confidential Information”) are the property of the
Company or such Subsidiary. Therefore, Employee agrees that he shall not disclose to any
unauthorized person or use for his own purposes any Confidential Information without the prior
written consent of the Board, unless and to the extent that the aforementioned matters (i) become
generally known to and available for use by the public other than as a result of Employee’s acts or
omissions, or (ii) are disclosed by Employee in response to an order of any court, governmental
agency or adjudicative body, provided that Employee shall have promptly notified the Company prior
to any such disclosure and provided reasonable cooperation in the Company’s efforts, if any, to
contest or limit the scope of such disclosure, and provided further that if such disclosure is the
subject of any protective or similar order, such information will still be considered Confidential
Information,

 

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except for the limited purpose of disclosure to such court, governmental agency or adjudicative body. Employee shall
deliver to the Company at the termination or resignation of his employment, or at any other time
the Company may request, all memoranda, notes, plans, records, reports, computer tapes, printouts
and software and other documents and data (and copies thereof) relating to the Confidential
Information, Work Product (as defined below) or the business of the Company or any Subsidiary which
he may then possess or have under his control.

7. Inventions and Patents. Employee acknowledges that all inventions, innovations,
improvements, developments, methods, designs, analyses, drawings, reports and all similar or
related information (whether or not patentable) which relate to the Company’s or any of its
Subsidiaries’ actual or anticipated business, research and development or existing or future
products or services and which are conceived, developed or made by Employee while employed by the
Company and its Subsidiaries (“Work Product”) belong to the Company or such Subsidiary. Employee
shall promptly disclose such Work Product to the Board and perform all actions reasonably requested
by the Board (whether during or after Employee’s employment with the Company) to establish and
confirm such ownership (including, without limitation, assignments, consents, powers of attorney
and other instruments).

8. Non-Compete. In further consideration of the compensation to be paid to Employee
hereunder, Employee acknowledges that in the course of his employment with the Company he shall
become familiar, and during his employment with the Company he has become familiar, with the
Company’s and its Subsidiaries’ trade secrets and with other Confidential Information concerning
the Company and its Subsidiaries and that his services have been and shall be of special, unique
and extraordinary value to the Company and its Subsidiaries. Therefore, Employee agrees that,
during the one (1) year period following Employee’s termination of employment (the “Non-Compete
Period”), he shall not directly or indirectly own any interest in, manage, control, participate in,
consult with, render services for, or in any manner engage in any business which is involved (or
has definite plans to get involved) in business activities that engage in the business of contract
research organization, recruiting, staffing and placement of personnel in the areas of clinical
research, medical writing, biostatistics and programming. Nothing herein shall prohibit Employee
from being a passive owner of not more than 3% of the outstanding stock of any class of a
corporation which is publicly traded, so long as Employee has no active participation in the
business of such corporation.

9. Non-Solicitation. During the one (1) year period immediately following the
termination of Employee’s employment (the “Non-Solicitation Period”), Employee shall not directly
or indirectly through another entity (i) induce or attempt to induce any employee of the Company or
any Subsidiary to leave the employ of the Company or such Subsidiary, or in any way interfere with
the relationship between the Company or any Subsidiary and any employee thereof, (ii) hire any
person, who was an employee of the Company or any Subsidiary at any time during the four (4) years
immediately preceding Employee’s termination, (iii) induce or attempt to induce any customer,
supplier, licensee, licensor, franchisee or other business relation of the Company or any
Subsidiary to cease doing business with the Company or such Subsidiary, or in any way interfere
with the relationship between any such customer, supplier, licensee or business, relation and the
Company or any Subsidiary (including, without limitation, making any negative statements or
communications about the Company or its Subsidiaries) or (iv) service
(except in the capacity of an employee) any customer, licensee, agent or franchisee of the
Company or any Subsidiary who was a customer, licensee, agent or franchisee of the Company or any
Subsidiary at any time during the two (2) years immediately preceding Employee’s termination or
resignation.

 

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10. Enforcement. If, at the time of enforcement of Sections 6, 7, 8 or 9 hereof, a
court holds that the restrictions stated herein are unreasonable under circumstances then existing,
the parties hereto agree that the maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or area. The parties hereto agree
that money damages would not be an adequate remedy for any breach of this Agreement because the
services provided by Employee pursuant to this Agreement are unique and because Employee has access
to Confidential Information and Work Product. As such, in the event a breach or threatened breach
of this Agreement, the Company or its successors or assigns may, in addition to other rights and
remedies existing in their favor, apply to any court of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce, or prevent any violations of,
the provisions hereof (without posting a bond or other security). In addition, in the event of an
actual breach or violation by Employee of Sections 8 or 9 hereof, the Non-Compete Period and the
Non-Solicitation Period shall be tolled until such breach or violation has been duly cured.
Employee hereby acknowledges and agrees that the restrictions contained in Sections 8 and 9 hereof
are reasonable.

11. Employee’s Representations. Employee hereby represents and warrants to the
Company that (i) the execution, delivery and performance of this Agreement by Employee do not and
shall not conflict with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which Employee is a party or by which he is bound, (ii)
Employee is not a party to or bound by any employment agreement, non-compete agreement or
confidentiality agreement with any other person or entity except as disclosed to the Company by
Employee in writing (including a copy of such agreement), and (iii) upon the execution and delivery
of this Agreement by the Company, this Agreement shall be the valid and binding obligation of
Employee, enforceable in accordance with its terms.

12. Definitions.

“Board” shall mean the board of directors of the Company.

“Cause” shall mean (i) the conviction of a felony or the commission of any other act or
omission involving dishonesty or fraud, (ii) failure to perform duties under this Agreement (which
failure is not cured within 30 days following written notice from the Company); provided such
duties are reasonable and consistent with the duties generally performed by an executive of the
same title, stature, duties and position as Employee or are otherwise consistent with this
Agreement, (iii) gross negligence or willful misconduct with respect to the Company or any of its
Subsidiaries, or (iv) any material breach (which failure is not cured within 30 days following
written notice from the Board) of this Agreement.

 

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“Change of Control” shall mean the happening of an event, which shall be deemed to have
occurred upon the earliest to occur of the following events: (i) the acquisition in one or more
transactions by any “Person” (as the term person is used for purposes of Sections
13(d) or 14(d) of the Exchange Act) of “Beneficial ownership” (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of thirty-five percent (35%) or more of the combined
voting power of the Company’s then outstanding voting securities (the “Voting Securities”),
provided that for purposes of this clause (i) Voting Securities acquired directly from the Company
by any Person shall be excluded from the determination of such Person’s Beneficial ownership of
Voting Securities (but such Voting Securities shall be included in the calculation of the total
number of Voting Securities then outstanding); or (ii) consummation by the Company of: a merger,
reorganization or consolidation involving the Company if the shareholders of the Company
immediately before such merger, reorganization or consolidation do not or will not own directly or
indirectly immediately following such merger, reorganization or consolidation, more than
thirty-five percent (35%) of the combined voting power of the outstanding voting securities of the
company resulting from or surviving such merger, reorganization or consolidation in substantially
the same proportion as their ownership of the Voting Securities outstanding immediately before such
merger, reorganization or consolidation; (iii) a complete liquidation or dissolution of the
Company; or (iv) consummation by the Company of a sale or other disposition of all or substantially
all of the assets of the Company; or (v) acceptance by shareholders of the Company of shares in a
share exchange if the shareholders of the Company immediately before such share exchange do not or
will not own directly or indirectly immediately following such share exchange more than thirty-five
percent (35%) of the combined voting power of the outstanding voting securities of the entity
resulting from or surviving such share exchange in substantially the same proportion as their
ownership of the Voting Securities outstanding immediately before such share exchange.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Disability” shall mean any physical or mental incapacitation which results in Employee’s
inability to perform his duties and responsibilities for the Company for a total of 120 days during
any twelve-month period, as determined by an Independent Medical Doctor and (ii) shall be deemed to
have occurred on the later of either the 120th day of such inability to perform or the date on
which the benefits under the Company’s long term disability insurance become payable to Employee.
For the purposes of this definition, an “Independent Medical Doctor” shall be a medical doctor
chosen in the following manner: Employee and the Board shall each choose a medical doctor and such
medical doctors, together, shall choose a third medical doctor who shall be the Independent Medical
Doctor.

“Good Reason” shall mean a material reduction or alteration in Employee’s duties, a material
reduction in Employee’s base compensation, or a requirement for Employee to be based at a location
in excess of 30 miles from Employee’s current residence.

“Subsidiaries” shall mean any entity of which a majority of the securities or other ownership
interests are, at the time of determination, owned by the Company, directly or through one or more
Subsidiaries.

13. Survival. Sections 4, 5, 6, 7, 8, 9 and 10 hereof and Sections 12 through 21
hereof shall survive and continue in full force in accordance with their terms notwithstanding any
termination of Employee’s employment by, or resignation of Employee’s employment with, the Company.

 

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14. Notices. Any notice provided for in this Agreement shall be in writing and shall
be either personally, delivered sent by facsimile (with hard copy to follow by regular mail), or
mailed by overnight courier (by a reputable courier service) or first class mail, return receipt
requested, to the recipient at the address below indicated:

Notices to Employee:

Steven Bell

[__________]

[___________]

Email: [__________]

Notices to the Company:

ReSearch Pharmaceutical Services, Inc.

520 Virginia Drive

Fort Washington, PA 19034

Attention: Chief Executive Officer

Fax: [__________]

or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement shall be
deemed to have been given when so delivered or mailed.

15. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement shall be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

16. Complete Agreement. This Agreement embodies the complete agreement and
understanding among the parties and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related to the subject
matter hereof in any way including, without limitation, that certain Employment Agreement dated as
of December 2, 2003 by and between the Company and the Employee.

17. No Strict Construction. The language used in this Agreement shall be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction shall be applied against any party.

18. Counterparts. This Agreement may be executed in separate counterparts (including
by facsimile signature pages), each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

 

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19. Successors and Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Employee, the Company and their respective heirs, successors and
assigns, except that Employee may not assign his rights or delegate his duties or obligations
hereunder without the prior written consent of the Company.

20. Choice of Law; Consent to Jurisdiction. All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and the exhibits and
schedules hereto shall be governed by, and construed in accordance with, the laws of the
Commonwealth of Pennsylvania, without giving effect to any choice of law or conflict of law rules
or provisions (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the Commonwealth of Pennsylvania.
In the case of any dispute under or in connection with this Agreement, Employee may only bring suit
against the Company in the Courts of the Commonwealth of Pennsylvania in and for the County of
Montgomery or in the Federal District Court for such geographic location. Employee hereby consents
to the jurisdiction and venue of the courts of the Commonwealth of Pennsylvania in and for the
County of Montgomery or the Federal District Court for such geographic location, provided that such
Federal Court has subject matter jurisdiction over such dispute, and Employee hereby waives any
claim he may have at any time as to forum non conveniens with respect to such venue. The Company
shall have the right to institute any legal action arising out of or relating to this Agreement in
any appropriate court and in any jurisdiction. Any judgment entered against either of the parties
in any proceeding hereunder may be entered and enforced by any court of competent jurisdiction.

21. Amendment and Waiver. The provisions of this Agreement may be amended or waived
only with the prior written consent of the Company and Employee, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding
effect or enforceability of this Agreement.

* * *

 

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IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date
first written above.

	 	 	 	 	 
	 	RESEARCH PHARMACEUTICAL SERVICES, INC.

 	 
	 	By:  	/s/ Daniel Perlman 	 
	 	 	 
	 	Its:  	Chairman & Chief Executive Officer 	 

	 	 	 	 	 
	 	 	 
	 	/s/ Steven Bell 	 
	 	Steven Bell 	 
	 	 	 

-10-exv10w8

Exhibit 10.8

ADC Telecommunications, Inc.

Management Incentive Plan Document

Fiscal Year 2011

MANAGEMENT INCENTIVE PLAN DOCUMENT

Fiscal Year 2011

Plan Name and Effective Date

The name of this Plan is the ADC Telecommunications, Inc. (together with its direct and indirect
majority owned subsidiaries, the “Company”) Management Incentive Plan (the “Plan”). The Plan is
effective from October 1, 2010 through September 30, 2011, which is the bonus period under the
Plan. The terms set forth herein are in all applicable cases subordinate and subject to the terms
contained in the ADC Telecommunications, Inc. Executive Change in Control Severance Pay Plan (2007
Restatement) and the ADC Telecommunications, Inc. Change in Control Severance Pay Plan (2007
Restatement) (collectively, the “Change in Control Severance Pay Plans”).

Purpose

The purpose of the Plan is to provide, with full regard to the protection of shareholder’s
investments, a direct financial incentive for eligible managers to make a significant contribution
to the Company’s established annual goals.

Eligibility

Eligibility for fiscal year 2011 is limited to full or part-time regular employees in the U.S. and
in such other countries where the Company (or its successor organization) has specifically notified
employees in writing of eligibility for participation in the Plan. Eligibility for participation
in this Plan is limited to such employees who hold executive officer and certain management
positions as designated by the Company’s Compensation Committee of the Board of Directors. The CEO
does not participate in the Plan. In order to be eligible, an employee cannot participate in any
other Company cash-based incentive plan, except as approved by the Compensation Committee of the
Board of Directors, and must be employed in an eligible position either on or before August 1,
2011.

The Plan is intended to encourage and reward both excellence of performance and employee retention.
Accordingly, a participant must be an employee of the Company (or its successor organization) on
the day of payment of incentive, in addition to satisfying all other eligibility requirements as
outlined in the Plan, to be eligible to receive an incentive award except as defined in the Effect
of Change in Employment Status section below.

 

 

Timing of Payment

Payments under this Plan shall be paid as soon as administratively feasible, but in no case later
than 75 days following the close of the Company’s fiscal year, unless payment becomes due at an
earlier date pursuant to an applicable Change in Control Severance Pay Plan. All payments are
subject to appropriate withholdings.

Plan Metrics

The Plan reinforces the key goals that support the Company’s strategic plans. The key factors in
the Company’s fiscal year 2011 corporate success are Pro Forma Operating Income and Net Sales (each
such factor, a “Plan Metric”). For each Plan Metric, the Company has established quarterly
thresholds, targets and maximums. These quarterly goals are cumulative (i.e. the 2nd,
3rd and 4th quarter goals include all results from the beginning of the
fiscal year through the end of the applicable quarter) and indicate for each Plan Metric the level
of financial business performance required to achieve threshold, target and maximum payouts.
Accounting methodology changes and extraordinary events such as acquisitions, divestitures, etc.
may dictate corresponding goal modifications during the Plan year. The following is a description
of each Plan Metric:

	 	 	 
	Plan Metric	 	Definition
	Pro Forma Operating Income

	 	The Company’s consolidated Net Sales
less all relevant expenses incurred
to produce the products or deliver
services. Expenses include direct
material and labor costs as well as
regional and Business Unit costs,
including engineering, sales &
marketing expenses, and corporate
overhead costs. Pro Forma
Operating Income does not include
interest income, interest expense,
income tax or other non-operating
income. It also excludes
restructuring and other one-time
expenses that are not reflective of
the ongoing business.
	 
	 	 
	Net Sales

	 	The amount the Company can recognize
in accordance with Generally
Accepted Accounting Principles
(GAAP) for goods shipped or services
provided to third-party customers,
net of returns received and
discounts.

NOTE: Net Sales and Pro-Forma Operating Income are measured on Plan foreign exchange rates using
the established Annual Operating Plan.

Award Payment Threshold

Except as set forth in the Effect of Tyco Electronics Tender Offer section below, no award payment
will be provided under this Plan unless the Company achieves the Plan Metric threshold level of
business performance for 4th Quarter Pro Forma Operating Income (the “Award Payment
Threshold”).

Page 2

 

Calculation of Payment

Except as set forth in the Effect of Tyco Electronics Tender Offer section below, prior to making
any payment under this Plan, the Compensation Committee of the Board of Directors must determine
the business performance level for each Plan Metric that has been achieved. The Compensation
Committee of the Board of Directors has complete authority and discretion to determine (a) the
business performance level of each Plan Metric that has been achieved, as well as (b) whether the
Award Payment Threshold has been achieved. The size of any incentive award payment will be based on
three factors:

	 	1.	 	Target Incentive Opportunity — Determined on the basis of the salary grade
associated with a participant’s job and country of work. It is expressed as a
percentage of a participant’s Eligible Earnings Paid.
	 
	 	2.	 	Eligible Earnings Paid — This is the amount paid to the participant during the
relevant time period in Base Salary and does not include perquisites, commissions,
discretionary bonuses, proceeds from equity awards, severance, etc.
	 
	 	3.	 	Business Performance achieved for both Plan Metrics. Each Plan Metric has been
assigned levels of business performance that represent 0%, 100% and 200% of targeted
business performance. The assigned business performance level representing 100%
equals the targeted business performance level. With respect to each Plan Metric, the
actual business performance results achieved are interpolated within these levels to
determine the business performance of the Plan Metric expressed as a percentage of the
targeted business performance (i.e. the calculation the business performance
achievement of each Plan Metric is expressed as a percentage of 0% to 200%). The
percentage assigned to each Plan Metric is weighted such that the business performance
achievement of the Pro Forma Operating Income Plan Metric is multiplied by .75 and the
business performance achievement of the Net Sales Plan Metric is multiplied by .25.
These two products are then added together to arrive at the combined business
performance level of both Plan Metrics. The maximum achievement of each Plan Metric
and, therefore, both Plan Metrics combined is 200%.

The maximum total award payment any individual may receive is 200% of his or her Target
Incentive Opportunity. Exhibit A provides the formula for calculating award
payments and examples of hypothetical award payment calculations.

Effect of Change in Employment Status

Termination of Employment. If employment with the Company is terminated for any reason
other than death, disability, or as a result of a reduction in force implemented by the Company or
its affiliates, and if the Employment Termination Date occurs prior to the date the payout is made,
a participant will not receive an award under the Plan. For purposes of this Plan, the “Employment
Termination Date” is the date that the participant ceases to be an employee of the Company or one
of its affiliates (as determined by the Company). In the case of termination of employment by the
Company, the Employment Termination Date shall be determined without regard to whether such
termination is with or without cause or with or without reasonable notice. For the purposes of
this Plan, if employment with the Company is involuntarily terminated as a result of the
participant’s death or disability, or as a result of a reduction in force implemented by the
Company or its affiliates, the participant will be entitled to receive a prorated payment based on
the number of days worked by the participant with the Company during the 2011 fiscal year. To be
eligible, the participant must have been employed by the Company for at least three full calendar
months during fiscal year 2011 (October 1, 2010 through September 30, 2011) and involuntarily
terminated as described above. In such cases, the prorated payment will be subject to the

Page 3

 

achievement of the applicable business performance criteria for the Plan year. Such prorated
payment will be payable following the end of the fiscal year in accordance with the Company’s
incentive plan payment practices.

Transfer, Promotion or Demotion to another position with a different ADC (or its successor
organization) incentive plan, target incentive opportunity or business goals.

A participant who transfers, is promoted or demoted to another position with a different plan,
target incentive opportunity or business goals will receive a prorated calculation of payment based
upon the amount of eligible earnings paid under each position. For example, a participant promoted
from a Grade 20 (40% on-plan incentive) to a Grade 22 (50% on-plan incentive) on June 10th would
receive payment under the Grade 20 incentive target for eligible earnings during the period of
October 1 — June 9 and payment under the Grade 22 incentive target for eligible earnings during
June 10 — September 30.

Effect of Tyco Electronics Tender Offer

Notwithstanding any other provisions of this Plan, if the proposed tender offer (the “TE Offer”) by
Tyco Electronics Minnesota, Inc. (or its nominee, “TE”) is completed during the Company’s 2011
fiscal year, payments under this Plan for the time period prior to completion of the TE Offer will
be made to participants as follows:

     First Quarter Completion of TE Offer

If the TE Offer is completed during the first quarter of fiscal year 2011, each participant will
receive a payment at his or her Target Incentive Opportunity for the first quarter based upon
eligible earnings paid to such participant during the first fiscal quarter.

     Second, Third or Fourth Quarter Completion of TE Offer

If the TE Offer is completed during the second, third of fourth quarter of fiscal year 2011, ADC
business performance relative to each Plan Metric for the period prior to completion of the TE
Offer will be determined based on a weighted average of (a) the cumulative business performance
achieved through the last completed fiscal quarter prior to the completion of the TE Offer, and (b)
targeted business performance level for the quarter in which the TE Offer is completed. The
weighting will be based on the number of business days within the completed quarters and the number
of business days in the uncompleted quarter.

All payments under this Plan pertaining to the time period prior to the completion of the TE Offer
shall be (a) calculated immediately following the completion of the TE Offer, and then (b) paid at
the end of the fiscal year consistent with the Timing of Payment section; provided, however,
payment shall be paid earlier if, and to the extent, required under the terms of this Plan.

Page 4

 

Participants in Change in Control Severance Plans Who Become Entitled to Severance
Payments Thereunder

Notwithstanding any of the foregoing of this Effect of Tyco Electronics Tender Offer section,
participants in either of the Change in Control Severance Pay Plans who become entitled to
severance payments thereunder shall be entitled to receive an incentive payout following their
employment termination pursuant to Section 4.2 of the applicable Change in Control Severance Pay
Plan. Further, such participants may also receive an additional incentive payout at the completion
of the 2011 fiscal year pursuant to Section 4.3 of the applicable Change in Control Severance Pay
Plan. Incentive payouts made pursuant to Section 4 of the applicable Change in Control Severance
Pay Plans are paid in lieu of any payouts that otherwise might become due under this Plan.

Right to Modify

Subject to provisions of the Merger Agreement that restrict modification or adjustment of the Plan
following the completion of the TE Offer, the Company reserves the right to modify or adjust the
Plan at any time in its sole discretion. The Merger Agreement stipulates that following the
completion of the TE Offer the performance criteria (i.e. the Plan Metrics and target performance
levels), but not the aggregate or per employee amount of the annualized target incentive, may be
modified by TE prospectively on a pro rated basis for the remainder of the fiscal year upon
completion of the TE Offer or the subsequent merger contemplated by the Merger Agreement to align
the strategic objectives of the combined businesses. Subject to the foregoing limitations, TE
might also elect to transfer participants to another cash incentive plan following the completion
of the TE Offer. The participant explicitly agrees with these modification and transfer rights,
such modification and transfer rights being subordinate and subject to the terms contained in the
Change in Control Severance Pay Plans.

If the Plan Metrics are modified pursuant to this section, then, subject to the other terms of this
Plan, the business performance results prior to the completion of the TE Offer would be measured
according to the initially established Plan Metrics and business results after the completion of
the TE Offer would be measured according to the modified criteria. The two sets of business
performance results would result in separate calculations of payments owing under the Plan and
these separate calculations shall be added together to arrive at a total payment owing to the Plan
participant.

Administration

The Plan is authorized by the Compensation Committee of the Company’s Board of Directors, which
will administer the Plan unless the Company’s Board of Directors determines otherwise. The
Compensation Committee of the Board of Directors is authorized under its charter to make all
decisions as required in administration of the Plan and to exercise its discretion to define,
interpret, construe, apply, approve, administer, withdraw and make any exceptions to the terms of
the Plan.

Governing Law

The Plan is made and shall be construed in accordance with the laws of the State of Minnesota,
U.S.A. without regard to conflicts of law principles thereof, or those of any other state of the
U.S.A. or of any other country, province or city.

Severability

If any provision of this Plan is held invalid, illegal or unenforceable by a court or tribunal of a
competent jurisdiction, this Plan shall be deemed severable and such invalidity, illegality

Page 5

 

or unenforceability shall not affect any other provision of this Plan which shall be enforced in
accordance with the intent of this Plan.

Assignment

The Company shall have the right to assign this Plan to its successors and assigns and this Plan
shall inure to the benefit of and be enforceable by said successors and assigns. Participant may
not assign this Plan or any rights hereunder.

Entire Understanding

This Plan constitutes the entire understanding between the parties regarding the payment of
incentive compensation under this Plan, and it supersedes any and all prior agreements or
understandings, whether oral or written, express or implied, on such subject matter.

No Acquired Rights or Entitlements/Plan Amendment or Termination

The Plan shall not entitle participants to any future compensation. The Plan is not an element of
the employees’ base salary or base compensation and shall not be considered as part of such in the
event of severance, redundancy, or resignation. The Company has no obligation to offer incentive
plans to participants in the future, and the plan shall be effective only for the time period
specified in the plan and shall not be deemed to renew year over year. The participant understands
and accepts that the incentive payments made under the Plan are entirely at the sole discretion of
the Company. Specifically, the Company assumes no obligation to the participant under this Plan
with respect to any doctrine or principle of acquired rights or similar concept.

Page 6

 

Exhibit A

Examples of FY11 Management Incentive Plan Calculations

The formula used to calculate payment owed is:

Business Performance of Plan Metrics x Eligible Earnings x Target Incentive Opportunity

“Business Performance of Plan Metrics” is calculated using the following formula:

(Business Performance of Pro-Forma Operating Income Plan Metric x .75) + (Business
Performance of
Net Sales x .25)

Assumptions for Examples:

			
	      Annual Salary:	 	$250,000

	      Incentive Target Opportunity:	 	
  50%

      Payment Threshold via Q4 Pro Forma
Operating Income Plan Metric is Achieved

Illustrative Q1 Close Example – December 8, 2010 Assumed Closing

Business Performance of Plan Metrics: 100% (At target performance (100%) by terms of Plan)

Eligible earnings paid during Q1: $38,461.54

Target Incentive Opportunity: 50%

Calculated Payout: $19,230.77

100 x 38,461.54 x .50 = 19,230.77

Illustrative
Q2 Close Example – January 31, 2011 Assumed Closing

Business Performance of Pro-Forma Operating Income Plan Metric Q1: 110%

Business Performance of Net Sales Plan Metric Q1: 85%

Business Performance of both Plan Metrics Q1: 103.75% (i.e. (1.1 x .75) + (.85 x .25))

Business Performance for Q2: 100% (At target performance by terms of the Plan)

Eligible earnings paid through Q2: $86,538.46

Weighted Average Business Performance Calculation:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of	 	 Business Performance X
	 	 	Business	 	Business	 	Number of Business
	 	 	Performance	 	Days	 	Days
	Q1
	 	 	103.75	%	 	 	66	 	 	 	68.475	 
	Q2
	 	 	100	%	 	 	21	 	 	 	21.0	 
	Total
	 	 	NA	 	 	 	87	 	 	 	89.475	 
	Weighted

	 	 	102.84	%	 	 	 	 	 	 	 	 
	Average
	 	 	(89.475 / 87	)	 	 	 	 	 	 	 	 

     Calculated Payout: $44,498.07

Business Performance X Eligible Earnings X Target Incentive Opportunity

Page 7

 

     (102.84%      X    
$86,538.46     X       50%)

Illustrative Full Year Example – September 30, 2011

Business Performance of Pro Forma Operating Income Plan Metric: 90%

Business Performance of Net Sales Plan Metric: 110%

Business Performance of both Plan Metrics: 95% (i.e. (.9 x .75) + (1.1 x .25))

			
	Eligible earnings:	 	$250,000.00
	 	 	
	Calculated Payout:	 	$118,750.00       Business Performance X Eligible Earnings X Target Incentive Percent)

(95.0%       X     $250.000.00
    X       50%)

Page 8

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