EX-10.20 3 y03007exv10w20.htm EX-10.20 exv10w20
Exhibit 10.20
Exhibit A
Performance Unit Award Notice
         
A.  
Participant:
                                                              
   
 
    
B.  
Grant Date:
  February 23, 2010
   
 
    
C.  
Performance Period:
  1/1/2010 through 12/31/2012
   
 
    
D.  
Aggregate Target Dollar Award:
                                                              
   
 
    
E.  
Initial Value Per Performance Unit:
                                                              
   
 
    
F.  
Aggregate Target Performance Units:
                                                              
   
 
    
G.  
Performance Measures:
    
  1.   Growth in Diluted Earnings per Share: The compounded annual growth rate in L-3’s Diluted EPS. “Diluted EPS” means earnings per common share on a fully diluted basis, determined in accordance with generally accepted accounting principles and as derived from L-3’s audited consolidated financial statements prepared in the ordinary course of business. Diluted EPS shall be adjusted as contemplated by the terms of the Performance Unit Agreement to exclude certain unusual or nonrecurring items.
 
      Portion of Aggregate Target Award for this Performance Measure: 50%
Target Units for this Performance Measure:                     
 
      Performance Scale:
                         
    Diluted        
    EPS   Cumulative    
Performance   Growth   Diluted   Unit
Levels   Rate   EPS Required   Multiplier
Maximum
  ³ 13 %   ³$ 29.54       200 %
 
    10 %   $ 27.93       150 %
Target
    8 %   $ 26.88       100 %
 
    7 %   $ 26.38       75 %
Threshold
    6 %   $ 25.89       50 %
Below Threshold
  < 6 %   <$ 25.89       0 %
      Note: Cumulative Diluted EPS based on 2009 adjusted diluted EPS of $7.67 excluding certain unusual or nonrecurring items contemplated by the Performance Unit Agreement.

 

 

      In the event that the level of actual performance exceeds the Threshold and falls between two of the stated performance levels listed above, the Unit Multiplier will be calculated on a straight-line basis between the two stated Unit Multipliers for those performance levels.
      Payment Method: Shares of L-3 stock. Subject to the terms of the Performance Unit Agreement, the number of shares will be determined by multiplying (1) the Target Units for this Performance Measure, by (2) the applicable Unit Multiplier.
  2.   Relative Total Stockholder Return: L-3’s TSR compared to the returns of a comparison group of companies (see Appendix 1). “TSR” means, with respect to a particular company for particular time period, (a) the change in the per-share market price of the company’s common stock (as quoted in the principal market on which it is traded as of the beginning and ending of the period) plus dividends and other distributions paid per share during such period, divided by (b) the per-share market price of the company’s common stock as quoted as of the beginning of such period, all of which is adjusted for any changes in company’s equity structure, including but not limited to stock splits and stock dividends. This measure will be assessed by determining L-3’s relative percentile positioning on TSR versus companies included in the comparison group.
      Portion of Aggregate Target Award for this Performance Measure: 50%
Target Units for this Performance Measure:                     
      Performance Scale:
                 
Performance   Relative     Unit  
Levels   TSR   Multiplier
Maximum
   > 74th percentile       200%  
 
   63rd percentile       150%  
Target
   50th percentile       100%  
Threshold
   40th percentile       50%  
Below Threshold
   < 40th percentile       0%  
      In the event that the level of actual performance exceeds the Threshold and falls between two of the stated performance levels listed above, the Unit Multiplier will be calculated on a straight-line basis between the two stated Unit Multipliers for those performance levels.
      Payment Method: Cash. Subject to the terms of the Performance Unit Agreement, the cash amount will be determined by multiplying (1) the Target Units for this Performance Measure, by (2) the applicable Unit Multiplier, by (3) the fair market value per share of L-3 common stock at end of the Performance Period.

 

 

Appendix 1
The companies included for the Relative Total Stockholder Return assessment are those in the S&P 1500 Aerospace & Defense Index, excluding L-3. This list will be modified by the Compensation Committee to reflect any changes to companies included in the Index.
                    S&P 1500 Aerospace & Defense Index
                 
        Company   Ticker    
  1.    
AAR CORP
  AIR    
  2.    
AEROVIRONMENT INC.
  AVAV    
  3.    
ALLIANT TECHSYSTEMS INC
  ATK    
  4.    
AMERICAN SCIENCE AND ENGINEERING INC
  ASEI    
  5.    
APPLIED SIGNAL TECHNOLOGY
  APSG    
  6.    
BE AEROSPACE INC
  BEAV    
  7.    
BOEING CO
  BA    
  8.    
CERADYNE INC
  CRDN    
  9.    
CUBIC CORP
  CUB    
  10.    
CURTISS-WRIGHT CORP
  CW    
  11.    
ESTERLINE TECHNOLOGIES CORP
  ESL    
  12.    
GENCORP INC
  GY    
  13.    
GENERAL DYNAMICS CORP
  GD    
  14.    
GOODRICH CORP
  GR    
  15.    
HONEYWELL INTERNATIONAL INC
  HON    
  16.    
ITT CORP
  ITT    
  17.    
LOCKHEED MARTIN CORP
  LMT    
  18.    
MOOG INC
  MOG.A    
  19.    
NORTHROP GRUMMAN CORP
  NOC    
  20.    
ORBITAL SCIENCES CORP.
  ORB    
  21.    
PRECISION CASTPARTS CORP
  PCP    
  22.    
RAYTHEON CO
  RTN    
  23.    
ROCKWELL COLLINS INC
  COL    
  24.    
STANLEY INC
  SXE    
  25.    
TELEDYNE TECHNOLOGIES INC
  TDY    
  26.    
TRIUMPH GROUP INC
  TGI    
  27.    
UNITED TECHNOLOGIES CORP
  UTX