Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34 Filing Table of Contents
Document/ExhibitDescriptionPagesSize
1: 10-K Annual Report HTML 1.64M
2: EX-10.30 Form of Award Certificate Director Stock Units HTML 48K
3: EX-10.31 Form of Award Certificate Restricted Stock HTML 93K
Performance Rights
4: EX-10.32 Form of Award Certificate Restricted Stock Rights HTML 79K
5: EX-10.33 Form of Award Certificate Stock Options HTML 96K
7: EX-21.1 Subsidiaries of Huntington Ingalls Industries, HTML 32K
Inc.
8: EX-23.1 Consent of Deloitte & Touche LLP HTML 29K
6: EX-12.1 Ratio of Earnings to Fixed Charges HTML 45K
9: EX-31.1 Section 302 CEO Certification HTML 35K
10: EX-31.2 Section 302 CFO Certification HTML 35K
11: EX-32.1 Section 906 CEO Certification HTML 30K
12: EX-32.2 Section 906 CFO Certification HTML 30K
72: R1 Document And Entity Information HTML 57K
58: R2 Consolidated Statements of Operations and HTML 127K
Comprehensive Income
70: R3 Consolidated Statements of Financial Position HTML 188K
75: R4 Condensed Consolidated Statements Of Financial HTML 44K
Position (Parenthetical)
94: R5 Consolidated Statements of Cash Flows HTML 156K
60: R6 Consolidated Statements of Changes in Equity HTML 73K
69: R7 Description of Business HTML 38K
53: R8 Summary of Significant Accounting Policies HTML 248K
43: R9 Accounting Standards Updates HTML 31K
95: R10 Avondale HTML 67K
77: R11 Earnings Per Share HTML 63K
76: R12 Segment Information HTML 114K
82: R13 Accounts Receivable, Net HTML 55K
83: R14 Inventoried Costs, Net HTML 46K
80: R15 Goodwill and Other Purchased Intangible Assets HTML 66K
84: R16 Business Arrangements HTML 57K
71: R17 Income Taxes HTML 163K
73: R18 Debt HTML 75K
79: R19 Investigations, Claims, And Litigation HTML 49K
103: R20 Commitments and Contingencies HTML 54K
90: R21 Impacts From Hurricanes HTML 41K
64: R22 Employee Pension And Other Postretirement Benefits HTML 539K
78: R23 Stock Compensation Plans HTML 125K
66: R24 Related Party Transactions And Former Parent HTML 46K
Company Equity
34: R25 Unaudited Selected Quarterly Data HTML 86K
91: R26 Subsidiary Guarantors HTML 567K
99: R27 Summary of Significant Accounting Policies HTML 379K
(Policies)
48: R28 Goodwill and Other Purchased Intangible Assets HTML 31K
Goodwill (Policies)
47: R29 Summary of Significant Accounting Policies HTML 195K
(Tables)
51: R30 Avondale (Tables) HTML 56K
52: R31 Earnings Per Share (Tables) HTML 56K
54: R32 Segment Information (Tables) HTML 106K
26: R33 Accounts Receivable, Net (Tables) HTML 50K
88: R34 Inventoried Costs, Net (Tables) HTML 44K
62: R35 Goodwill and Other Purchased Intangible Assets HTML 57K
Goodwill (Tables)
65: R36 Business Arrangements (Tables) HTML 49K
38: R37 Income Taxes (Tables) HTML 151K
102: R38 Debt (Tables) HTML 60K
19: R39 Commitments and Contingencies (Tables) HTML 38K
55: R40 Employee Pension and Other Postretirement Benefits HTML 524K
(Tables)
93: R41 Stock Compensation Plans (Tables) HTML 90K
36: R42 Unaudited Selected Quarterly Data (Tables) HTML 81K
46: R43 Subsidiary Gurantors (Tables) HTML 566K
50: R44 Description of Business (Details) HTML 44K
59: R45 Summary of Significant Accounting Policies HTML 112K
(Details)
25: R46 Summary of Significant Accounting Policies - HTML 36K
Useful Lives of Depreciable Assets (Details)
42: R47 Summary of Significant Accounting Policies HTML 136K
Revision of Financial Information (Details)
21: R48 Avondale (Details) HTML 66K
92: R49 Earnings Per Share - Calculation of Detailed and HTML 72K
Diulted Earnings per Common Share (Details)
35: R50 Earnings Per Share - Narrative (Details) HTML 42K
89: R51 Segment Information (Details) HTML 94K
39: R52 Accounts Receivable, Net (Details) HTML 50K
56: R53 Inventoried Costs, Net (Details) HTML 46K
20: R54 Goodwill (Details) HTML 47K
23: R55 Purchased Intangible Assets (Details) HTML 55K
49: R56 Business Arrangements (Details) HTML 74K
29: R57 Income Taxes (Details) HTML 200K
96: R58 Debt (Details) HTML 46K
61: R59 Debt Narrative (Details) HTML 154K
81: R60 Investigations, Claims, and Litigation (Details) HTML 38K
41: R61 Commitments and Contingencies Commitments and HTML 85K
Contingencies (Details)
44: R62 Impacts From Huricanes (Details) HTML 34K
87: R63 Employee Pension and Other Postretirement Benefits HTML 33K
Defined Contribution (Details)
85: R64 Employee Pension and Other Postretirement Benefits HTML 54K
Net Benefit Costs (Details)
63: R65 Employee Pension and Other Postretirement Benefits HTML 140K
Funded Status (Details)
86: R66 Employee Pension and Other Postretirement Benefits HTML 72K
Other Comprehensive Income (Details)
40: R67 Employee Pension and Other Postretirement Benefits HTML 75K
Assumptions (Details)
67: R68 Employee Pension and Other Postretirement Benefits HTML 47K
Cash Contributions (Details)
98: R69 Employee Pension and Other Postretirement Benefits HTML 67K
Expected Future Benefit Payments and Receipts
(Details)
22: R70 Employee Pension and Other Postretirement Benefits HTML 86K
Asset Allocation (Details)
33: R71 Employee Pension and Other Postretirement Benefits HTML 67K
Level 3 Rollforward (Details)
57: R72 Employee Pension and Other Postretirement Benefits HTML 68K
(Textuals) (Details)
28: R73 Stock Compensation Plans - Share Based HTML 92K
Compensation, Effect of Spinoff (Details)
101: R74 Stock Compensation Plans - Share-based HTML 107K
Compensation Awards (Details)
37: R75 Stock Compensation Plans - Compensation and HTML 59K
Unrecognized Compensation Expense (Details)
30: R76 Stock Compensation Plans - Stock Option Activity HTML 94K
and Assumptions Used in Valuation (Details)
32: R77 Related Party Transactions and Former Parent HTML 40K
Company Equity (Details)
24: R78 Unaudited Selected Quarterly Data (Details) HTML 69K
27: R79 Condensed Consolidating Statements of Operations HTML 140K
and Comprehensive Income (Details)
74: R80 Condensed Consolidating Statements of Financial HTML 178K
Position (Details)
31: R81 Condensed Consolidating Statements of Cash Flows HTML 105K
(Details)
97: R82 Valuation and Qualifying Accounts (Details) HTML 37K
100: XML IDEA XML File -- Filing Summary XML 151K
45: EXCEL IDEA Workbook of Financial Reports (.xls) XLS 4.76M
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‘EX-10.32’ — Form of Award Certificate Restricted Stock Rights
HUNTINGTON INGALLS INDUSTRIES, INC. TERMS AND CONDITIONS APPLICABLE TO
[___] RESTRICTED STOCK RIGHTS GRANTED UNDER THE [___] LONG-TERM INCENTIVE STOCK PLAN
These Terms and Conditions (“Terms”) apply to certain “Restricted Stock Rights” (“RSRs”) granted by Huntington Ingalls Industries, Inc. (the “Company”) in [__]. If you were granted an RSR award by the Company in [__], the date of grant of your RSR award (the “Grant Date”) and the number of RSRs applicable to your award are set forth in the letter
from the Company announcing your RSR award grant (your “Grant Letter”) and are also reflected in the electronic stock plan award recordkeeping system (“Stock Plan System”) maintained by the Company or its designee. These Terms apply only with respect to the [__] RSR award. If you were granted an RSR award, you are referred to as the “Grantee” with respect to your award. Capitalized terms are generally defined in Section 10 below if not otherwise defined herein.
Each RSR represents a right to receive one share of the Company’s Common Stock, or cash of equivalent value as provided herein, subject to vesting as provided herein. The number of RSRs
subject to your award is subject to adjustment as provided herein. The RSR award is subject to all of the terms and conditions set forth in these Terms, and is further subject to all of the terms and conditions of the Plan, as it may be amended from time to time, and any rules adopted by the Committee, as such rules are in effect from time to time.
1.
Vesting; Issuance of Shares.
Subject to Sections 2 and 5 below, one hundred percent (100%) of the number of RSRs subject to your award (subject to adjustment as provided in Section 5.1) shall vest upon the third anniversary of the Grant Date.
Except as otherwise provided below, the
Company shall pay a vested RSR within 2.5 months following the vesting of the RSR on the third anniversary of the Grant Date. The Company shall pay such vested RSRs in either an equivalent number of shares of Common Stock, or, in the discretion of the Committee, in cash or in a combination of shares of Common Stock and cash. In the event of a cash payment, the amount of the payment for a vested RSR to be paid in cash (subject to tax withholding as provided in Section 6 below) will equal the Fair Market Value (as defined below) of a share of Common Stock as of the date that such RSR became vested. No fractional shares will be issued.
2.
Early Termination of Award; Termination
of Employment.
2.1 General. The RSRs subject to the award, to the extent not previously vested, shall terminate and become null and void if and when (a) the award terminates in connection with a Change in Control pursuant to Section 5 below, or (b) except as provided in Section 2.6 and in Section 5, the Grantee ceases for any reason to be an employee of the Company or one of its subsidiaries.
2.2 Leave of Absence. Unless the Committee otherwise provides (at the time of the leave or otherwise), if the Grantee is granted a leave
of absence by the Company, the Grantee (a) shall not be deemed to have incurred a termination of employment at the time such leave commences for purposes of the award, and (b) shall be deemed to be employed by the Company for the duration of such approved leave of absence for purposes of the award. A termination of employment shall be deemed to have occurred if the Grantee does not timely return to active employment upon the expiration of such approved leave or if the Grantee commences a leave that is not approved by the Company.
2.3 Salary Continuation. Subject to Section 2.2 above, the term “employment” as used
herein means active employment by the Company and salary continuation without active employment (other than a leave of absence approved by the Company that is covered by Section 2.2) will not, in and of itself, constitute “employment” for purposes hereof (in the case of salary continuation without active employment, the Grantee’s cessation of active employee status shall, subject to Section 2.2, be deemed to be a termination of “employment” for purposes hereof). Furthermore, salary continuation will not, in and of itself, constitute a leave of absence approved by the Company for purposes of the award.
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Exhibit
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2.4 Sale or Spinoff of Subsidiary or Business Unit. For purposes of the RSRs subject to the award, a termination of employment of the Grantee shall be deemed to have occurred if the Grantee is employed by a subsidiary or business unit and that subsidiary or business unit is sold, spun off, or otherwise divested, the Grantee does not otherwise continue to be employed by the Company after such event, and the divested entity or business (or its successor or a parent company) does not assume the award in connection with such transaction.
2.5 Continuance of Employment Required. Except as expressly provided in Section 2.6 and in Section 5, the vesting of the RSRs subject to the award requires
continued employment through the third anniversary of the Grant Date as a condition to the vesting of any portion of the award. Employment for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment. Nothing contained in these Terms, the Stock Plan System, or the Plan constitutes an employment commitment by the Company or any subsidiary, affects the Grantee’s status (if the Grantee is otherwise an at-will employee) as an employee at will who is subject to termination without cause, confers upon the Grantee any right to continue in the employ of the Company or any subsidiary, or interferes in any way with the right of the
Company or of any subsidiary to terminate such employment at any time.
2.6 Death or Disability. If the Grantee dies or incurs a Disability while employed by the Company or a subsidiary, the outstanding and previously unvested RSRs subject to the award shall vest as of the date of the Grantee’s death or Disability, as applicable. RSRs vesting under this Section shall be paid within 2.5 months following the earlier of (a) Grantee’s death or (b) Grantee’s Disability. In the event of the Grantee’s death prior to the delivery of shares or other payment with respect to any vested RSRs, the Grantee’s Successor shall be entitled to any payments to which the Grantee would have been entitled under these Terms with respect to such vested and unpaid RSRs.
3.
Non-Transferability
and Other Restrictions.
3.1 Non-Transferability. The award, as well as the RSRs subject to the award, are non-transferable and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge. The foregoing transfer restrictions shall not apply to transfers to the Company or transfers by will or the laws of descent and distribution. Notwithstanding the foregoing, the Company may honor any transfer required pursuant to the terms of a court order in a divorce or similar domestic relations matter to the extent that such transfer does not adversely affect the
Company’s ability to register the offer and sale of the underlying shares on a Form S-8 Registration Statement and such transfer is otherwise in compliance with all applicable legal, regulatory and listing requirements.
3.2 Recoupment of Awards. Any payments or issuances of shares with respect to the award are subject to recoupment pursuant to the Company’s Policy Regarding the Recoupment of Certain Performance-Based Compensation Payments as in effect from time to time, as well as any recoupment or similar provisions of applicable law, and the Grantee shall promptly make any reimbursement requested by the Board or Committee pursuant to such policy or applicable law with respect to the award. Further, the Grantee agrees, by accepting the award, that the
Company and its affiliates may deduct from any amounts it may owe the Grantee from time to time (such as wages or other compensation) to the extent of any amounts the Grantee is required to reimburse the Company pursuant to such policy or applicable law with respect to the award.
4.
Compliance with Laws; No Stockholder Rights Prior to Issuance; Dividend Equivalent Rights.
4.1 Compliance with Laws. The Company’s obligation to make any payments or issue any shares
with respect to the award is subject to full compliance with all then applicable requirements of law, the Securities and Exchange Commission or other regulatory agencies having jurisdiction over the Company and its shares, and of any exchange upon which stock of the Company may be listed.
4.2 Limitations on Rights Associated with RSRs. The Grantee shall not have the rights and privileges of a stockholder, including without limitation the right to vote or receive dividends (except as expressly provided in Section 4.3), with respect to any shares which may be issued in respect of the RSRs until the date appearing
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Exhibit
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on the certificate(s) for such shares (or, in the case of shares entered in book entry form, the date that the shares are actually recorded in such form for the benefit of the Grantee), if such shares become deliverable.
4.3 Dividend Equivalent Rights. Not later than 60 days following each date that the Company pays an ordinary cash dividend on its Common Stock (if any), the Company shall credit the Grantee with an additional number of RSRs equal to the quotient of (A) the product of (i) the per share cash dividend paid by the Company on its Common Stock on such
date, multiplied by (ii) the total number of RSRs (including any dividend equivalents previously credited hereunder) (with such total number adjusted pursuant to Section 5) subject to the RSR award as of the related dividend payment record date, divided by (B) the Fair Market Value of a share of Common Stock on the date of payment of such dividend. Any RSRs credited pursuant to the foregoing provisions of this Section 4.3 shall be subject to the same vesting, payment and other terms, conditions and restrictions as the original RSRs to which they relate. No crediting of RSRs shall be made pursuant to this Section 4.3 with respect to any RSRs which, as of such record date, have been paid pursuant to Section 1.
5.
Adjustments; Change in Control.
5.1 Adjustments. The
RSRs and the shares subject to the award are subject to adjustment upon the occurrence of events such as stock splits, stock dividends and other changes in capitalization in accordance with Section 6(a) of the Plan. In the event of any adjustment, the Company will give the Grantee written notice thereof which will set forth the nature of the adjustment.
5.2 Possible Vesting Acceleration on Change in Control. Notwithstanding the Company’s ability to terminate the award as provided in Section 5.3 below, the outstanding and previously unvested RSRs subject to the award shall become fully vested as of the date of the Grantee’s termination of employment in the following circumstances:
(a)
if
the Grantee is covered by a Change in Control Severance Arrangement at the time of the termination, if the termination of employment constitutes a “Qualifying Termination” (as such term, or any similar successor term, is defined in such Change in Control Severance Arrangement) that triggers the Grantee’s right to severance benefits under such Change in Control Severance Arrangement.
(b)
if the Grantee is not covered by a Change in Control Severance Arrangement at the time of the termination and if the termination occurs either within the Protected Period corresponding to a Change in Control of the Company or within twenty-four (24) calendar months following
the date of a Change in Control of the Company, the Grantee’s employment by the Company and its subsidiaries is involuntarily terminated by the Company and its subsidiaries for reasons other than Cause or by the Grantee for Good Reason.
Notwithstanding anything else contained herein to the contrary, the termination of the Grantee’s employment (or other events giving rise to Good Reason) shall not entitle the Grantee to any accelerated vesting pursuant to clause (b) above
if there is objective evidence that, as of the commencement of the Protected Period, the Grantee had specifically been identified by the Company as an employee whose employment would be terminated as part of a corporate restructuring or downsizing program that commenced prior to the Protected Period and such termination of employment was expected at that time to occur within six (6) months. The applicable Change in Control Severance Arrangement shall govern the matters addressed in this paragraph as to clause (a) above.
Payment of any amount due under this Section will be made within 2.5 months following the third anniversary of the Grant Date unless the Grantee dies or has a Disability prior to such anniversary, in which case such payment will be made within 2.5 months following the date of the Grantee’s death or Disability, as the case
may be.
5.3 Automatic Vesting Acceleration; Early Termination. If the Company undergoes a Change in Control triggered by clause (iii) or (iv) of the definition thereof and the Company is not the surviving entity and the successor to the Company (if any) (or a Parent thereof) does not agree in writing prior to the occurrence of the Change in Control to continue and assume the award following the Change in Control, or if for any other reason the award would not continue after the Change in Control, then upon the Change in Control the outstanding and previously unvested RSRs subject to the award shall vest fully and completely. Unless
the
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Exhibit 10.32
Committee expressly provides otherwise in the circumstances, no acceleration of vesting of the award shall occur pursuant to this Section 5.3 in connection with a Change in Control if either (a) the Company is the surviving entity, or (b) the successor to the Company (if any) (or a Parent thereof) agrees in writing prior to the Change in Control to assume the award. The award shall terminate, subject to such acceleration provisions, upon a Change in Control triggered by clause (iii) or (iv) of the definition thereof in
which the Company is not the surviving entity and the successor to the Company (if any) (or a Parent thereof) does not agree in writing prior to the occurrence of the Change in Control to continue and assume the award following the Change in Control. The Committee may make adjustments pursuant to Section 6(a) of the Plan and/or deem an acceleration of vesting of the award pursuant to this Section 5.3 to occur sufficiently prior to an event if necessary or deemed appropriate to permit the Grantee to realize the benefits intended to be conveyed with respect to the shares underlying the RSRs; provided, however, that, the Committee shall reinstate the original terms of the award if the related event does not actually occur.
Payment of any amount due under this
Section will be made within 2.5 months following the third anniversary of the Grant Date, unless the Grantee dies or has a Disability prior to such anniversary, in which case such payment will be made within 2.5 months following the date of the Grantee’s death or Disability, as the case may be.
6.
Tax Matters.
6.1 Tax Withholding. The Company or the subsidiary which employs the Grantee shall be entitled to require, as a condition of making any payments or issuing any shares upon vesting of the RSRs, that
the Grantee or other person entitled to such shares or other payment pay any sums required to be withheld by federal, state, local or other applicable tax law with respect to such vesting or payment. Alternatively, the Company or such subsidiary, in its discretion, may make such provisions for the withholding of taxes as it deems appropriate (including, without limitation, withholding the taxes due from compensation otherwise payable to the Grantee or reducing the number of shares otherwise deliverable with respect to the award (valued at their then Fair Market Value) by the amount necessary to satisfy such withholding obligations at the flat percentage rates applicable to supplemental wages).
6.2 Transfer Taxes. The
Company will pay all federal and state transfer taxes, if any, and other fees and expenses in connection with the issuance of shares in connection with the vesting of the RSRs.
6.3 Compliance with Code. The Committee shall administer and construe the award, and may amend the Terms of the award, in a manner designed to comply with the Code and to avoid adverse tax consequences under Code Section 409A or otherwise.
6.4 Unfunded Arrangement. The right of the Grantee to receive payment under the award shall be an unsecured contractual claim against the Company. As such, neither the Grantee nor any Successor shall have any rights in or against any specific assets of the
Company based on the award. Awards shall at all times be considered entirely unfunded for tax purposes.
7.
Committee Authority.
The Committee has the discretionary authority to determine any questions as to the date when the Grantee’s employment terminated and the cause of such termination and to interpret any provision of these Terms, the Grant Letter, the Stock Plan System, the Plan, and any other applicable rules. Any action taken by, or inaction of, the Committee relating to or pursuant to these Terms, the Grant Letter, the Stock Plan System, the Plan, or any other applicable rules shall be within the absolute discretion of the Committee and shall be conclusive and binding on
all persons.
8.
Plan; Amendment.
The RSRs are governed by, and the Grantee’s rights are subject to, all of the terms and conditions of the Plan and any other rules adopted by the Committee, as the foregoing may be amended from time to time. The Grantee shall have no rights with respect to any amendment of these Terms or the Plan unless such amendment is in writing and signed by a duly authorized officer of the Company. In the event of a conflict
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Exhibit
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between the provisions of the Grant Letter and/or the Stock Plan System and the provisions of these Terms and/or the Plan, the provisions of these Terms and/or the Plan, as applicable, shall control.
9.
Required Holding Period.
The holding requirements of this Section 9 shall apply to any Grantee who is an elected or appointed officer of the Company on the date vested RSRs are paid (or, if earlier, on the date the Grantee’s employment by the Company and its
subsidiaries terminates for any reason). Any Grantee subject to this Section 9 shall not be permitted to sell, transfer, anticipate, alienate, assign, pledge, encumber or charge 50% of the total number (if any) of shares of Common Stock the Grantee receives as payment for vested RSRs until the earlier of (A) the third anniversary of the date such shares of Common Stock are paid to the Grantee, or (B) the date the Grantee’s employment by the Company and its subsidiaries terminates due to the Grantee’s death or Disability. For purposes of this Section 9, the total number of shares of Common Stock the Grantee receives as payment for vested RSRs shall be determined on a net basis after taking into account
any shares otherwise deliverable with respect to the award that the Company withholds to satisfy tax obligations pursuant to Section 6.1. Any shares of Common Stock received in respect of shares that are covered by the holding period requirements of this Section 9 (such as shares received in respect of a stock split or stock dividend) shall be subject to the same holding period requirements as the shares to which they relate.
10. Definitions.
Whenever used in these Terms, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the
word is capitalized:
“Board” means the Board of Directors of the Company.
“Cause” means the occurrence of either or both of the following:
(i) The Grantee’s conviction for committing an act of fraud, embezzlement, theft, or other act constituting a felony (other than traffic related offenses or as a result of vicarious liability);
or
(ii) The willful engaging by the Grantee in misconduct that is significantly injurious to the Company. However, no act, or failure to act, on the Grantee's part shall be considered “willful” unless done, or omitted to be done, by the Grantee not in good faith and without reasonable belief that his action or omission was in the best interest of the Company.
“Change
in Control” is used as defined in the Plan.
“Change in Control Severance Arrangement” means a “Special Agreement” entered into by and between the Grantee and the Company that provides severance protections in the event of certain changes in control of the Company or the Company’s Change-in-Control Severance Plan, as each may be in effect from
time to time, or any similar successor agreement or plan that provides severance protections in the event of a change in control of the Company.
“Code” means the United States Internal Revenue Code of 1986, as amended.
“Committee” means the Company’s Compensation Committee or any successor
committee appointed by the Board to administer the Plan.
“Disability” means, with respect to a Grantee, that the Grantee: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected
to result in death or can be expected to last for a continuous period of not less than twelve months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the
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Grantee’s employer; all construed and interpreted consistent with the definition of “Disability” set forth in Code Section 409A(a)(2)(C).
“Fair Market Value” is used as defined in the
Plan; provided, however, the Committee in determining such Fair Market Value for purposes of the award may utilize such other exchange, market, or listing as it deems appropriate.
“Good
Reason” means, without the Grantee’s express written consent, the occurrence of any one or more of the following:
(i) A material and substantial reduction in the nature or status of the Grantee’s authorities or responsibilities (when such authorities and/or responsibilities are viewed in the aggregate) from their level in effect on the day immediately prior to the start of the Protected Period, other than (A) an inadvertent act that is remedied by the
Company promptly after receipt of notice thereof given by the Grantee, and/or (B) changes in the nature or status of the Grantee’s authorities or responsibilities that, in the aggregate, would generally be viewed by a nationally-recognized executive placement firm as resulting in the Grantee having not materially and substantially fewer authorities and responsibilities (taking into consideration the Company’s industry) when compared
to the authorities and responsibilities applicable to the position held by the Grantee immediately prior to the start of the Protected Period. The Company may retain a nationally-recognized executive placement firm for purposes of making the determination required by the preceding sentence and the written opinion of the firm thus selected shall be conclusive as to this issue. In addition, if the Grantee is a vice president,
the Grantee’s loss of vice-president status will constitute “Good Reason”; provided that the loss of the title of “vice president” will not, in and of itself, constitute Good Reason if the Grantee’s lack of a vice president title is generally consistent with the manner in which the title of vice president is used within the Grantee’s business unit or if the loss of the title is the result of a promotion to a higher level office. For the purposes of the preceding sentence, the Grantee’s
lack of a vice president title will only be considered generally consistent with the manner in which such title is used if most persons in the business unit with authorities, duties, and responsibilities comparable to those of the Grantee immediately prior to the commencement of the Protected Period do not have the title of vice-president.
(ii) A reduction by the Company in the Grantee’s annualized
rate of base salary as in effect at the start of the Protected Period, or as the same shall be increased from time to time.
(iii) A material reduction in the aggregate value of the Grantee's level of participation in any of the Company’s short and/or long-term incentive compensation plans (excluding stock-based incentive compensation plans), employee benefit or retirement plans, or policies, practices, or arrangements in which
the Grantee participates immediately prior to the start of the Protected Period provided; however, that a reduction in the aggregate value shall not be deemed to be “Good Reason” if the reduced value remains substantially consistent with the average level of other employees who have positions commensurate with the position held by the Grantee immediately prior to the start of the Protected Period.
(iv) A material reduction in the Grantee’s
aggregate level of participation in the Company’s stock-based incentive compensation plans from the level in effect immediately prior to the start of the Protected Period; provided, however, that a reduction in the aggregate level of participation shall not be deemed to be “Good Reason” if the reduced level of participation remains substantially consistent with the average level of participation of other employees who have positions commensurate with the position
held by the Grantee immediately prior to the start of the Protected Period.
(v) The Grantee is informed by the Company that his or her principal place of employment for the Company will be relocated to a location that is greater than fifty (50) miles away from the Grantee’s principal place of employment for the Company at the start
of the corresponding Protected Period; provided that, if the Company communicates an intended effective date for such relocation, in no event shall Good Reason exist pursuant to this clause (v) more than ninety (90) days before such intended effective date.
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Exhibit 10.32
The Grantee’s
right to terminate employment for Good Reason shall not be affected by the Grantee’s incapacity due to physical or mental illness. The Grantee’s continued employment shall not constitute a consent to, or a waiver of rights with respect to, any circumstances constituting Good Reason herein.
“Parent” is used as defined in the Plan.
“Plan” means the Huntington Ingalls Industries, Inc. [__] Long-Term Incentive Stock Plan, as it may
be amended from time to time.
The “Protected Period” corresponding to a
Change in Control of the Company shall be a period of time determined in accordance with the following:
(i) If the Change in Control is triggered by a tender offer for shares of the Company’s stock or by the offeror’s acquisition of shares pursuant to such
a tender offer, the Protected Period shall commence on the date of the initial tender offer and shall continue through and including the date of the Change in
Control; provided that in no case will the Protected Period commence earlier than the date that is six (6) months prior to the Change in Control.
(ii) If the Change in Control is triggered by a merger, consolidation, or reorganization of the
Company with or involving any other corporation, the Protected Period shall commence on the date that serious and substantial discussions first take place to effect the merger, consolidation, or reorganization and shall continue through and including the date of the Change in Control; provided that in no case will the Protected Period commence earlier than the date that is six (6) months prior to the Change in Control.
(iii) In the case of any Change in Control not
described in clause (i) or (ii) above, the Protected Period shall commence on the date that is six (6) months prior to the Change in Control and shall continue through and including the date of the Change in Control.
“Successor” means the person acquiring a Grantee’s rights to a grant under the Plan by will or by the laws of descent or distribution.
