What is a Rule 10b5-1 trading plan and why is it significant for investors?

A Rule 10b5-1 trading plan allows corporate insiders (like executives) to pre-arrange the sale of their company stock at a time when they do not possess material non-public information. This plan provides a defense against insider trading allegations, as trades executed under the plan can proceed regardless of future insider information. For investors, it signals that an executive is diversifying their holdings in a structured and compliant manner, rather than reacting to non-public events.

What is the total number of shares Mr. McArthur plans to sell under this plan?

Mr. McArthur's plan covers a maximum of 11,600 shares awarded under a performance share plan, plus 3,813 restricted shares that are set to vest on August 24, 2010. The exact number of shares sold will depend on factors such as tax withholding requirements and the achievement of minimum price thresholds.

When will these stock sales begin and how will investors be informed?

The sales are scheduled to begin in September 2010. All transactions conducted under this plan will be publicly disclosed by Harris Corporation through Form 4 and Form 144 filings with the Securities and Exchange Commission.

Does this plan indicate any negative outlook for Harris Corporation's stock?

The establishment of a Rule 10b5-1 plan is primarily for an executive's personal financial and estate planning, allowing for orderly diversification. It does not necessarily imply a negative view of the company's future prospects. The plan adheres to company stock ownership guidelines and is designed to avoid disruptions caused by possession of future material non-public information.

LHX 8-K SEC Disclosure — Jun 16, 2010

Summary

This 8-K filing from Harris Corporation reports on a Rule 10b5-1 trading plan established by Gary L. McArthur, Senior Vice President and Chief Financial Officer. The plan facilitates the sale of up to 11,600 shares awarded under a 2007 Performance Share Award and 3,813 restricted shares vesting in August 2010. These sales are intended for asset diversification and financial planning purposes, aligning with the company's insider trading policy and regulatory requirements. The plan is designed to sell shares on predetermined dates starting September 2010, subject to minimum price thresholds and potential early termination. Importantly, the sales are structured to comply with Rule 10b5-1, allowing trades to proceed even if Mr. McArthur later possesses material non-public information. The plan ensures Mr. McArthur's stock ownership remains above executive guidelines, and all transactions will be publicly disclosed via Form 4 and Form 144 filings.

Key Highlights

1CFO Gary L. McArthur established a Rule 10b5-1 pre-arranged stock trading plan.
2The plan allows for the sale of up to 11,600 shares from a 2007 Performance Share Award.
3An additional 3,813 restricted shares, vesting August 24, 2010, are also included in the plan.
4Sales are scheduled to commence in September 2010, subject to price thresholds and specific conditions.
5The plan is intended for asset diversification and financial, estate, and tax planning.
6Transactions will be disclosed publicly via SEC Form 4 and Form 144 filings.
7The plan ensures Mr. McArthur's ownership remains compliant with company guidelines.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Corporate Update (Jun 16, 2010)

Summary

Key Highlights

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