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Sample Business ContractsHome: Sample Business Contracts: April 25, 2002 Michael Pratt Dear Michael: This offer letter replaces in its entirety the offer letter that I sent to you on April 22, 2002. I am very pleased to offer you employment with ADC for the position of ADC Vice President and President of ADC's Wireline Business Unit. You will report directly to ADC's CEO Rick Roscitt. The terms of our offer are as follows: Salary Sign On Bonus Annual Incentive Stock Option Grant Restricted Stock Grant Michael Pratt Additional Stock Programs For Fiscal Year 2003, you will be eligible for any FY03 Executive Incentive Exchange Program. Terms of ADC's FY02 program provide that eligible participants can exchange up to 50% of their Management Incentive for stock options - the number of option shares granted as a result of the exchange will equal the dollar amount of the MIP award elected to be exchanged multiplied by 4.5, with this product being divided by the closing market value of ADC common stock on the effective date of the grant. Plan materials for the Executive Stock Ownership Program and the FY02 Executive Incentive Exchange Program are enclosed. Perquisites Benefits Relocation ADC will support your relocation in a manner reflective of your executive status with ADC. This support will include home sale and home purchase assistance. Should your relocation be to Tustin California, ADC will provide a special relocation provision to partially offset the living cost differential between the two locations. Prior to relocating your family residence, ADC will provide or reimburse expenses associated with a leased accommodation in the Tustin area, as well as the limited movement of personal goods, including an automobile. Separation Michael Pratt In the event of a Change in Control, as defined by ADC's Executive Change in Control Severance Plan, the terms of that plan will apply to you. If within three years from your start date and in circumstances not covered by ADC's Change in Control Plan, you are (a) involuntarily terminated for reasons other than willful and continued failure to perform duties or willful misconduct or (b) you voluntarily terminate in association with a job reassignment not of comparable responsibility or status, or a reduction in base pay, ADC will provide you severance payments totaling 18 months of your current base salary, provided you sign an ADC waiver and release agreement. Requirements
Because of your position within ADC, we expect that you will be designated as a "Section 16" reporting officer by ADC's Board of Directors, which will subject you to the reporting requirements and trading restrictions with respect to ADC common stock that are imposed by Section 16 of the Securities Exchange Act of 1934. We will provide you with additional materials regarding ADC's Section 16 compliance program shortly after your commencement date. We will, however, need to obtain all information regarding your current holdings in ADC common stock within a few days following your commencement date, in order to make the required filings with the Securities and Exchange Commission on a timely basis. ADC has hired you because of your general background and experience and does not want or expect you to use any confidential or trade secret information in discharging your duties for ADC. By accepting ADC's offer employment, you are warranting that you are not bringing any trade secret or confidential materials with you to ADC, that you understand that ADC does not want you to disclose any trade secrets or confidential information from your former employer, and that you will discharge your duties at ADC without relying on any confidential or trade secret information you may have acquired in your former employment. Also included is an employment application that we ask you to complete and return to us in the enclosed envelope prior to your start date. Please confirm your decision by acknowledging and returning one copy of this letter. Your first day of employment will be mutually agreed upon. Michael Pratt Michael, on behalf of everyone here at ADC, we look forward to your joining the team. If you have any questions, please do not hesitate to call me at 952-917-0706. Sincerely, /s/ Laura Owen Laura Owen
Enclosures To acknowledge your acceptance of this offer and the terms and conditions, please sign and return this original prior to your start date.
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