Exhibit 10.6
POWERWAVE TECHNOLOGIES,
INC.
RESTRICTED STOCK UNIT AWARD
AGREEMENT
UNDER
2005 STOCK INCENTIVE
PLAN
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Award Date
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Number of Units
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Final Vesting Date
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[Restricted
Stock Units]
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Powerwave Technologies, Inc. (the
“Company”) has on the Award Date specified above
granted to
(“Grantee”) an award (the “Award”) to
receive that number of restricted stock units (the
“Restricted Stock Units”) indicated above in the box
labeled “Number of Units,” each Restricted Stock Unit
representing the right to receive one share of the Company’s
Common Stock, $.0001 par value per share (the “Common
Stock”), subject to certain restrictions and on the terms and
conditions contained in this Award and the Powerwave Technologies,
Inc. 2005 Stock Incentive Plan (the “Plan”). Any terms
not defined herein shall have the meaning set forth in the
Plan.
1. Rights of the Grantee with
Respect to the Restricted Stock Units .
(a) No Stockholder Rights .
The Grantee shall have no rights as a stockholder of the Company
until shares of Common Stock are actually issued to and held of
record by the Grantee. The rights of Grantee with respect to the
Restricted Stock Units shall remain forfeitable at all times prior
to the date on which such rights become vested, and the
restrictions with respect to the Restricted Stock Units lapse, in
accordance with Section 2, 3 or 4 below.
(b) Additional Restricted Stock
Units . As long as Grantee holds Restricted Stock Units granted
pursuant to this Award, the Company shall credit to Grantee, on
each date that the Company pays a cash dividend to holders of
Common Stock generally, an additional number of Restricted Stock
Units (“Additional Restricted Stock Units”) equal to
the total number of whole Restricted Stock Units and Additional
Restricted Stock Units previously credited to Grantee under this
Award multiplied by the dollar amount of the cash dividend paid per
share of Common Stock by the Company on such date, divided by the
Fair Market Value of a share of Common Stock on such date. Any
fractional Restricted Stock Unit resulting from such calculation
shall be included in the Additional Restricted Stock Units. A
report showing the number of Additional Restricted Stock Units so
credited shall be sent to Grantee periodically, as determined by
the Company. The Additional Restricted Stock Units so credited
shall be subject to the same terms and conditions as the Restricted
Stock Units to which such Additional Restricted Stock Units relate
and the Additional Restricted Stock Units shall be forfeited in the
event that the Restricted Stock Units with respect to which such
Additional Restricted Stock Units were credited are
forfeited.
(c) Conversion of Restricted
Stock Units; Issuance of Common Stock . No shares of Common
Stock shall be issued to Grantee prior to the date on which the
Restricted Stock Units vest, and the restrictions with respect to
the Restricted Stock Units lapse, in accordance with
Section 2, 3 or 4. Neither this
Section 1(c) nor any action taken pursuant to or in accordance
with this Section 1(c) shall be construed to create a trust of
any kind. As soon as practical after any Restricted Stock Units
vest pursuant to Section 2, 3 or 4, the Company shall promptly
cause to be issued an equivalent number of shares of Common Stock,
registered in Grantee’s name or in the name of
Grantee’s legal representatives, beneficiaries or heirs, as
the case may be, in payment of such vested whole Restricted Stock
Units and any Additional Restricted Stock Units. Such payment shall
be subject to the tax withholding provisions of Section 7, and
shall be in complete satisfaction of such vested Restricted Stock
Units. The value of any fractional Restricted Stock Unit shall be
paid in cash at the time certificates are delivered to Grantee in
payment of the Restricted Stock Units and any Additional Restricted
Stock Units.
2. Vesting . Subject
to the terms and conditions of this Award, the Restricted Stock
Units shall become vested in installments as follows: [INSERT
VESTING SCHEDULE, EITHER TIME-BASED OR
PERFORMANCE-BASED].
As used herein, the term
“Continuous Service” means (i) employment by
either the Company or any parent or subsidiary corporation of the
Company, or by any successor entity following a Change in Control,
which is uninterrupted except for vacations, illness, or leaves of
absence which are approved in writing by the Company or any of such
other employer corporations, if applicable, or (ii) service as
a member of the Board of Directors of the Company until Grantee
resigns, is removed from office, or Grantee’s term of office
expires and he or she is not reelected. The Grantee’s
Continuous Service shall not terminate merely because of a change
in the capacity in which the Grantee renders service to the Company
or a corporation or subsidiary corporation described in clause
(i) above. For example, a change in the Grantee’s status
from an employee to a Non-Employee Director will not constitute an
interruption of the Grantee’s Continuous Service, provided
there is no interruption in the Grantee’s performance of such
services. Notwithstanding the foregoing, for any employee of a
subsidiary of the Company located outside the United States, such
employee’s Continuous Service shall be deemed terminated upon
the commencement of such employee’s “garden leave
period,” “notice period,” or other similar period
where such employee is being compensated by such subsidiary but not
actively providing service to such subsidiary.
3. Vesting Upon Change in
Control .
(a) Notwithstanding Section 2
above, if Grantee holds Restrictive Stock Units at the time a
Change in Control occurs, and (i) the Change in Control is not
approved by a majority of the Continuing Directors (as defined
below), or (ii) the acquiring or successor entity (or parent
thereof) does not agree to provide for the continuance or
assumption of this Agreement or the substitution for this Agreement
of a new agreement of comparable value covering shares of a
successor corporation, then all of the Restricted Stock Units shall
become immediately and unconditionally vested and exercisable, and
the restrictions with respect to all of the Restricted Stock Units
shall lapse, effective immediately prior to the consummation of
such Change in Control. Notwithstanding the foregoing sentence, if
pursuant to a Change in Control approved by a majority of the
Continuing Directors the acquiring or successor entity (or parent
thereof) provides for the continuance or assumption of this
Agreement or the substitution for this Agreement of a new agreement
of comparable value covering shares of a successor corporation,
then vesting of the Restricted Stock Units shall not accelerate in
connection with such Change in Control to the extent this Agreement
is continued, assumed or substituted for; provided, however, if
Grantee’s Continuous Service is terminated without Cause or
pursuant to a Constructive Termination (as defined
below)
within 180 days following such
Change in Control, all Restricted Stock Units shall vest and become
exercisable effective upon such termination.
(b) For purposes of this Agreement,
the following terms shall have the meanings set forth
below:
(i) “Cause” means, with
respect to a Grantee’s Continuous Service, the termination by
the Company of such Continuous Service for any of the following
reasons: (a) The continued, unreasonable refusal or omission
by the Grantee to perform any material duties required of him by
the Company if such duties are consistent with duties customary for
the position held with the Company; (b) Any material act or
omission by the Grantee involving malfeasance or gross negligence
in the performance of Grantee’s duties to, or material
deviation from any of the policies or directives of, the Company;
(c) Conduct on the part of Grantee which constitutes the
breach of any statutory or common law duty of loyalty to the
Company; including the unauthorized disclosure of material
confidential information or trade secrets of the Company; or
(d) any illegal act by Grantee which materially and adversely
affects the business of the Company or any felony committed by
Grantee, as evidenced by conviction thereof, provided that the
Company may suspend Grantee with pay while any allegation of such
illegal or felonious act is investigated. In the event that the
Grantee is a party to an employment agreement or other similar
agreement with the Company or any Affiliate that defines a
termination on account of “Cause” (or a term having
similar meaning), such definition shall apply as the definition of
a termination on account of “Cause” for purposes
hereof, but only to the extent that such definition provides the
Grantee with greater rights. A termination on account of Cause
shall be communicated by written notice to the Grantee, and shall
be deemed to occur on the date such notice is delivered to the
Grantee.
(ii) “Constructive
Termination” shall mean a termination of employment by
Grantee within sixty (60) days following the occurrence of any
one or more of the following events without the Grantee’s
written consent (i) any reduction in position, title, overall
responsibilities, level of authority, level of reporting, base
compensation, annual incentive compensation opportunity, aggregate
employee benefits or (ii) a request that Grantee’s
location of employment be relocated by more than fifty
(50) miles. In the event that the Grantee is a party to an
employment agreement or other similar agr