What is the primary purpose of this filing?

The primary purpose of this Form 8-K filing is to disclose the adoption of a Supplemental Pension Plan (SPP) for Harris Corporation's CEO, Howard L. Lance, by the company's Board of Directors.

How will the Supplemental Pension Plan for Mr. Lance be funded?

The SPP is an unfunded plan. This means benefits will be paid from the general assets of Harris Corporation. A rabbi trust will be established on or before Mr. Lance's termination date or a change in control event to hold assets equivalent to the present value of expected benefits, but Mr. Lance and his beneficiaries will have the status of general unsecured creditors of Harris Corporation.

What triggers a benefit payment for Mr. Lance under this plan?

Benefit payments can be triggered by several events, including retirement at or after age 60, early retirement (after meeting age and service requirements), termination without cause or for good reason prior to eligibility for full retirement benefits, disability, or under specific circumstances following a change in control of the company.

Are there any conditions that would prevent Mr. Lance from receiving benefits?

Yes, benefits would not be paid if Mr. Lance resigns or is terminated for 'Cause' (as defined in a prior agreement) before the Early Retirement Eligibility Date. Furthermore, any violation of the non-competition or non-solicitation provisions outlined in the SPP would result in the forfeiture of all benefits.

LHX 8-K: Material Agreements

Summary

This Form 8-K filing by Harris Corporation (now L3Harris Technologies) on November 2, 2006, primarily announces the adoption of a Supplemental Pension Plan (SPP) for its Chairman, President, and CEO, Howard L. Lance. The SPP is designed to provide executive benefits to retain and motivate Mr. Lance, as the company does not have a broad executive pension plan. The plan outlines various benefit scenarios based on retirement age, early retirement, termination without cause or for good reason, disability, death, and change in control events. Key to investors is understanding the potential financial implications of this executive compensation arrangement. The SPP is an unfunded plan, meaning benefits will be paid from Harris Corporation's general assets or a rabbi trust. The filing specifies benefit calculations based on Mr. Lance's Final Pay (base salary + target incentive) and includes offsets for other retirement benefits and social security. The plan also incorporates non-competition and non-solicitation clauses, with violations resulting in forfeiture of benefits.

Key Highlights

1Harris Corporation has established a Supplemental Pension Plan (SPP) for its CEO, Howard L. Lance.
2The SPP is intended to provide retention and motivation benefits for Mr. Lance, as Harris lacks a general executive pension plan.
3Benefit calculations are based on Mr. Lance's 'Final Pay' (most recent annual base salary plus target annual cash incentive).
4The SPP details benefits for various scenarios: retirement at or after age 60, early retirement, termination without cause/for good reason, disability, and death.
5A 'Change in Control' provision offers specific benefits if Mr. Lance terminates employment under defined circumstances following such an event.
6The plan is unfunded, with benefits payable from Harris' general assets or a dedicated rabbi trust.
7Non-competition and non-solicitation clauses are included, with violations leading to forfeiture of SPP benefits.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Material Agreement (Nov 2, 2006)

Summary

Key Highlights

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