STOCK OPTION AGREEMENT ANDREW CORPORATION LONG TERM INCENTIVE PROGRAM
Exhibit 10.3
THIS
AGREEMENT is made as of the ___day of
____________,
(the “Grant Date”) between
XXXXXX CORPORATION, a Delaware corporation (the “Company”), and (the “Optionee”).
WITNESSETH:
WHEREAS, the Company adopted the Xxxxxx Corporation Long Term Incentive Plan (the “LTIP”) for
the purpose of providing incentives to selected key employees by making available to them
opportunities to acquire shares of the common stock, $.01 par value, of the Company (the “Common
Stock”); and
WHEREAS, the Compensation and Human Resources Committee of the Board of Directors of the
Company (the “Committee”) considers it desirable and in the best interests of the Company that the
Optionee be granted options to purchase Common Stock.
NOW THEREFORE, in consideration of these premises, the parties agree as follows:
1. Grant. The Company grants to the Optionee an option to purchase shares of Common
Stock at a price of $______ per share (the “Option Price”), on the terms and subject to the
conditions hereinafter set forth (the “Option”).
2. Duration; Exercise. The duration of the Option shall be for the period beginning
on the Grant Date and continuing through the close of business on
_______________ (the “Option Period”). Except to
the extent otherwise provided in Section 3 and Section 6, this Option may be exercised with respect
to 25% of the shares of Common Stock awarded hereunder on each of the first, second, third and
fourth anniversaries of the Grant Date.
3. Right to Exercise in Certain Events. Notwithstanding the provisions of Section 2
to the contrary, but subject to Section 6, the Option shall be fully exercisable if the Optionee’s
employment terminates (1) due to Retirement or Disability (as such terms are defined in the LTIP)
after not less than six months following the Grant Date, or (2) by reason of death. If the
Optionee terminates employment by reason of Retirement or Disability, the Option will be
exercisable for three years or, if earlier, until the end of the Option Period. If the Optionee
dies while employed by the Company or after terminating by reason of Retirement or Disability, the
Option will be exercisable by the Optionee’s Beneficiary (as defined in the LTIP) until the
earliest of one year after death, three years after termination due to Retirement or Disability, or
the end of the Option Period. The Optionee may designate a person, trust or other entity as the
-1-
Optionee’s Beneficiary. No such designation, or any revocation or change thereof, is effective
unless made in writing on a form provided by the Committee and delivered to the Committee prior to
death. If the Optionee fails to properly designate a Beneficiary or the Optionee’s Beneficiary
fails to survive the Optionee, then the Optionee’s Beneficiary will be the Optionee’s estate. If
the Optionee terminates employment for any reason other than Retirement, Disability or death, the
Option will be exercisable (to the extent vested at termination of employment) until the earlier of
three months after termination of employment or the end of the Option Period, and any portion of
the Option which is not vested on such termination date shall be permanently forfeited. If the
Optionee dies during such period, the Optionee’s Beneficiary may exercise the Option (to the extent
vested and exercisable on the date of death) until the earlier of one year after death or the end
of the Option Period. In the event of a Change in Control (as defined in the LTIP), the Option
shall be fully vested and exercisable during the 90 days immediately thereafter.
4. Purchase of Option or Option Shares by Company. Following the death of the
Optionee, the Company may, but need not, upon the request of the holder of the Option, purchase the
Option prior to its exercise at a price equal to the difference between the Fair Market Value, on
the date of such request, of the shares of Common Stock then subject to exercise and the Option
Price for such shares.
5. Notice of Exercise. The Option, or any part of it, may be exercised electronically
in accordance with the on-line procedures established by our stock option administrator.
Information regarding the electronic exercise process is available at xxx.xxxxxxxxxxxx.xxx
or by contacting XX Xxxxxx at 000-000-0000.
6. Termination or Forfeiture of Option. (a) The Committee may forfeit this Option at
any time, regardless of whether the Option is vested or unvested at such time (except if the Option
has vested pursuant to a Change in Control), if the Committee in its sole discretion determines
that the Optionee has engaged in any activity in competition with the Company, disclosed or misused
the Company’s confidential information or trade secrets, hired Company employees or solicited them
to terminate employment with the Company, or engaged in any other activity or conduct that in the
Committee’s sole discretion is harmful to the interests of the Company. In addition to the
foregoing, the Optionee agrees to pay the Company the amount of any Option gain (net of any income
taxes paid thereon) realized by the Optionee from the prior exercise(s) of part or all of this
Option during the period beginning one year prior to the date of the Optionee’s termination of
employment and ending one year after the Optionee’s termination of employment.
(b) By accepting this Agreement, the Optionee consents to a deduction by the Company from any
amounts that it owes the Optionee pursuant to this Agreement or any other plan, contract or
agreement, to the extent of any amount that the Optionee may owe the Company under subsection (a)
above. Whether or not the Company elects to make any such deduction, if the Company does not
recover the full amount owed by the Optionee, the Optionee agrees to immediately pay the unpaid
balance to the Company. The Company shall not be liable for any loss incurred by the Optionee with
respect to the exercise of the Option due to the decrease of the Common Stock’s Fair Market Value
pending final determination by the Committee of whether the Optionee has engaged in any activity
described in subsection (a) above.
-2-
(c) The Option may not be exercised if such exercise could constitute a violation of any
applicable federal, state or other law or regulation.
7. Rights Not Conferred. The Option shall not be affected by any change in the nature
of the Optionee’s employment so long as the Optionee continues to be employed by the Company.
Nothing contained in the LTIP or in the Option shall confer upon the Optionee any right with
respect to continuance of employment by the Company or interfere in any way with the right of the
Company to terminate the employment of the Optionee at any time. The Optionee shall have none of
the rights of a stockholder with respect to the Option shares until full payment of the Option
Price and delivery of the certificate or certificates for such shares.
8. Option Not Assignable. The Option is not transferable or assignable, and during
the Optionee’s lifetime is exercisable only by the Optionee or by the Optionee’s guardian or legal
representative; provided that no provision herein shall prevent the designation of a Beneficiary
for the Option in the event of the Optionee’s death.
9. Adjustments. If and to the extent that the number of outstanding shares of Common
Stock shall be increased or reduced in the event of a merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, reverse stock split, spin-off, combination,
repurchase or exchange of shares, or similar corporate transaction, the number and kinds of shares
subject to the Option and the Option Price shall be proportionately adjusted by the Committee,
whose determination shall be conclusive; provided that any fractional share resulting from an
adjustment hereunder shall be rounded to the nearest whole number.
10. Option Subject to LTIP. The granting of the Option is being made pursuant to the
LTIP and the Option shall be exercisable only in accordance with the applicable terms of the LTIP.
The LTIP contains certain definitions, restrictions, limitations and other terms and conditions all
of which shall be applicable to this Option. ALL OF THE PROVISIONS OF THE LTIP ARE INCORPORATED
HEREIN BY REFERENCE AND ARE MADE A PART OF THIS AGREEMENT IN THE SAME MANNER AS IF EACH AND EVERY
SUCH PROVISION WERE FULLY SET OUT HEREIN. Should the LTIP become void or unenforceable by
operation of law or judicial decision, this Agreement shall have no force or effect. Nothing set
forth in this Agreement is intended, nor shall any of its provisions be construed, to limit or
exclude any definition, restriction, limitation, or other term or condition of the LTIP as is
relevant to this Agreement and as may be specifically applied to it by the Committee. In the event
of a conflict in the provisions of this Agreement and the LTIP, as a rule of construction the terms
of the LTIP shall be deemed superior and apply. The Optionee hereby acknowledges receipt of a copy
of the LTIP.
11. Binding Effect. This Agreement shall be binding upon the heirs, executors,
administrators and successors of the parties hereto.
-3-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first above written.
Via On-Line Acceptance
Optionee’s Signature
XXXXXX CORPORATION
By:
|
||||
| Xxxxx X. Xxxxxx President and Chief Executive Officer |
-4-
