exv10w6



 





Exhibit 10.6




 

 






AMETEK, INC.



DEFERRED COMPENSATION PLAN




 






Amended and Restated as of January 1, 2005




 

 






 









 












TABLE OF CONTENTS




	 	 	 	 	 	 	 
	Article 1. Purpose	 	 	1	 
	 
	 	 	 	 	 	 
	1.01.
	 	Purpose	 	 	1	 
	1.02.
	 	Effective Date	 	 	1	 
	 
	 	 	 	 	 	 
	Article 2. Definitions and Construction	 	 	2	 
	 
	 	 	 	 	 	 
	2.01.
	 	Definitions	 	 	2	 
	2.02.
	 	Construction	 	 	6	 
	 
	 	 	 	 	 	 
	Article 3. Eligibility and Participation	 	 	7	 
	 
	 	 	 	 	 	 
	3.01.
	 	Eligibility and Participation	 	 	7	 
	3.02.
	 	Change in Employment Status	 	 	7	 
	 
	 	 	 	 	 	 
	Article 4. Election Requirements	 	 	8	 
	 
	 	 	 	 	 	 
	4.01.
	 	Bonus Compensation Deferral Election Filing Deadline	 	 	8	 
	4.02.
	 	New Eligible Employees	 	 	8	 
	4.03.
	 	2005 Plan Year Re-Deferral Election	 	 	8	 
	 
	 	 	 	 	 	 
	Article 5. Accounts	 	 	9	 
	 
	 	 	 	 	 	 
	5.01.
	 	Accounts	 	 	9	 
	5.02.
	 	Amounts Allocated to Accounts	 	 	9	 
	5.03.
	 	Earnings on Accounts	 	 	9	 
	5.04.
	 	Vesting of Accounts	 	 	9	 
	5.05.
	 	No Actual Investment	 	 	9	 
	5.06.
	 	Statement of Accounts	 	 	9	 
	5.07.
	 	Distributions from Accounts	 	 	10	 
	 
	 	 	 	 	 	 
	Article 6. Payment of Plan Benefits	 	 	11	 
	 
	 	 	 	 	 	 
	6.01.
	 	Payments from the Retirement Distribution Account	 	 	11	 
	6.02.
	 	Payments from the In-Service Distribution Account	 	 	12	 
	6.03.
	 	Payments Upon Death of Participant	 	 	14	 
	6.04.
	 	Payments in the Event of an Emergency	 	 	14	 
	6.05.
	 	Payments Upon Disability of Participant	 	 	15	 
	6.06.
	 	Payments Upon a Change in Control	 	 	15	 
	6.07.
	 	Administrative Acceleration or Delay of Payment	 	 	15	 
	6.08.
	 	Withholding	 	 	15	 
	6.09.
	 	Payment to Guardian	 	 	15	 
	6.10.
	 	Effect of Payment	 	 	16	 
	 
	 	 	 	 	 	 
	Article 7. Beneficiary Designation	 	 	17	 
	 
	 	 	 	 	 	 
	7.01.
	 	Beneficiary Designation	 	 	17	 
	7.02.
	 	Changing Beneficiary	 	 	17	 
	7.03.
	 	No Beneficiary Designation	 	 	17	 
	7.04.
	 	Effect of Payment	 	 	17	 






			
	 	 	 
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	 	Table of Contents — Page i






 









 






	 	 	 	 	 	 	 
	Article 8. Administration of the Plan	 	 	18	 
	 
	 	 	 	 	 	 
	8.01.
	 	Committee Duties	 	 	18	 
	8.02.
	 	Agents	 	 	18	 
	8.03.
	 	Binding Effect of Decisions	 	 	18	 
	8.04.
	 	Indemnity of Committee	 	 	18	 
	8.05.
	 	Election of Committee After Change in Control	 	 	18	 
	 
	 	 	 	 	 	 
	Article 9. Claims Procedure	 	 	19	 
	 
	 	 	 	 	 	 
	9.01.
	 	Claim	 	 	19	 
	9.02.
	 	Denial of Claim	 	 	19	 
	9.03.
	 	Review of Claim	 	 	19	 
	9.04.
	 	Final Decision	 	 	19	 
	9.05.
	 	Claims for Disability Benefits	 	 	19	 
	 
	 	 	 	 	 	 
	Article 10. Amendment and Termination of Plan	 	 	20	 
	 
	 	 	 	 	 	 
	Article 11. Miscellaneous	 	 	21	 
	 
	 	 	 	 	 	 
	11.01.
	 	Hypothetical Accounts	 	 	21	 
	11.02.
	 	Company Obligation	 	 	21	 
	11.03.
	 	Trust Fund	 	 	21	 
	11.04.
	 	Nonassignability	 	 	21	 
	11.05.
	 	Not a Contract of Employment	 	 	22	 
	11.06.
	 	Protective Provisions	 	 	22	 
	11.07.
	 	Governing Law	 	 	22	 
	11.08.
	 	Severability	 	 	22	 
	11.09.
	 	Headings	 	 	22	 
	11.10.
	 	Notice	 	 	22	 
	11.11.
	 	Successors	 	 	22	 
	 
	 	 	 	 	 	 
	EXHIBIT A	 	 	24	 
	 
	 	 	 	 	 	 
	APPENDIX A	 	 	A-1	 






			
	 	 	 
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ARTICLE 1. PURPOSE





	1.01.	 	Purpose.
	 
	 	 	The AMETEK, Inc. Deferred Compensation Plan (the “Plan”), is intended to provide additional
retirement benefits and increased financial security, on a tax-favored basis, to a select
group of management and highly compensated employees of AMETEK, Inc. These individuals may
defer a portion of their annual incentive bonus under the Plan if their compensation (as
defined under the Plan) exceeds the compensation limits of section 401(a)(17) of the Code.
	 
	1.02.	 	Effective Date.
	 
	 	 	The Plan, as hereby amended and restated, is effective with respect to amounts that were not
deferred or vested (within the meaning of section 409A of the Code) before January 1, 2005,
and any earnings on such amounts. Amounts deferred and vested (within the meaning of
section 409A of the Code) before January 1, 2005 and earnings on such amounts are not
affected by this amendment and restatement of the Plan, and remain subject to the terms of
the October 1, 1999 plan document, which are set forth in Appendix A to this January 1,
2005, amendment and restatement. For recordkeeping purposes, the Company will establish
separate accounts for each Participant for amounts deferred and vested before January 1,
2005, and amounts deferred and vested on or after that date.






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ARTICLE 2. DEFINITIONS AND CONSTRUCTION





	2.01.	 	Definitions.
	 
	 	 	For the purpose of this Plan, the following terms shall have the meanings set forth below,
unless the context clearly indicates otherwise.






	 	(a)	 	Account. “Account” or “Accounts” means the hypothetical Retirement
Distribution Account and/or In-Service Distribution Account established on the books of
the Company pursuant to Section 5.01.
	 
	 	(b)	 	Article. “Article” means an article of this Plan.
	 
	 	(c)	 	Beneficiary. “Beneficiary” means the person, persons or entity as
designated by the Participant, entitled under Article 7 to receive any Plan benefits
payable after the Participant’s death.
	 
	 	(d)	 	Board. “Board” means the Board of Directors of AMETEK, Inc.
	 
	 	(e)	 	Bonus Compensation. “Bonus Compensation” means the portion of an
Eligible Employee’s Compensation consisting of the amount of the incentive to be paid
to an Eligible Employee under the Company’s incentive compensation plan for a Plan
Year, other than any bonus paid to an Eligible Employee that is characterized by the
Company as a “sign on bonus” or other non-recurring incentive bonus.
	 
	 	(f)	 	Bonus Compensation Deferral. “Bonus Compensation Deferral” means that
portion of Eligible Bonus Compensation as to which an Eligible Employee has made an
annual irrevocable election to defer receipt until the date specified under the
In-Service Distribution Option and/or the Retirement Distribution Option.
	 
	 	(g)	 	Cause. “Cause” means (1) misappropriation of funds, (2) habitual
insobriety or substance abuse, (3) conviction of felony or crime involving moral
turpitude, or (3) gross negligence in the performance of duties that has had a material
adverse effect on the business, operations, assets, properties or financial condition
of the Company.
	 
	 	(h)	 	Change in Control. A “Change in Control” shall occur if:






	 	(1)	 	Any one Person or more than one Person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
ownership of stock of the Company that, together with the stock held by such
Person or group of Persons, constitutes more than 50 percent of the total fair
market value or total voting power of the stock of the Company. However, if
such Person or group of Persons is considered to own more than 50 percent of the
total fair market value or total voting power of the stock of the Company before
this transfer of the Company’s stock, the acquisition of additional stock by the
same Person or group of Persons shall not be considered to cause a Change in
Control of the Company; or
	 
	 	(2)	 	Any one Person or more than one Person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
(or has






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	 	 	 	acquired during the 12-month period ending on the date of the most recent
acquisition by such Person or group of Persons) ownership of stock of the
Company possessing 30 percent or more of the total voting power of the stock
of the Company. However, if such Person or group of Persons is considered to
own 30 percent or more of the total voting power of the stock of the Company
before this acquisition, the acquisition of additional control or stock of
the Company by the same Person or group of Persons shall not cause a Change
in Control of the Company; or
	 
	 	(3)	 	A majority of members of the Company’s Board is replaced during
any 12-month period by directors whose appointment or election is not endorsed
by a majority of the members of the Company’s Board before the date of the
appointment or election; or
	 
	 	(4)	 	Any one Person or more than one Person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
(or has acquired during the 12-month period ending on the date of the most
recent acquisition by such Person or group of Persons) assets from the Company
that have a total gross fair market value equal to substantially all but in no
event less than 40 percent of the total fair market value of all assets of the
Company immediately prior to such acquisition or acquisitions. For this
purpose, gross fair market value means the value of the assets of the Company,
or the value of the assets being disposed of, determined without regard to any
liabilities associated with such assets. A transfer of assets by the Company
will not result in a Change in Control under this Section 2.01(h)(4), if the
assets are transferred to:






	 	(A)	 	A shareholder of the Company (immediately before
the asset transfer) in exchange for or with respect to its stock;
	 
	 	(B)	 	An entity, 50 percent or more of the total value
or voting power of which is owned, directly or indirectly, by the
Company immediately after the transfer of assets;
	 
	 	(C)	 	A Person or more than one Person acting as a
group (as defined in section 1.409A-3(i)(5)(v)(B) of the Treasury
Regulations) that owns, directly or indirectly, 50 percent or more of
the total value or voting power of all the outstanding stock of the
Company; or
	 
	 	(D)	 	An entity, at least 50 percent of the total value
or voting power of which is owned directly or indirectly, by a person
described in Section 2.01(h)(4)(C), above.






	 	 	 	For purposes of this Section 2.01(h), no acquisition, either directly or indirectly,
by the Participant, his affiliates and associates, the Company, any subsidiary of the
Company, any employee benefit plan of the Company or of any subsidiary of the
Company, or any person or entity organized, appointed or established by the Company
for or pursuant to the terms of any such employee benefit plan shall constitute a
Change in Control.






AMETEK, Inc., Deferred Compensation Plan


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	 	 	 	For purposes of this Section 2.01(h), the following terms shall have the meanings set
forth below:






	 	(1)	 	“Company” shall mean AMETEK, Inc., except that, if a Participant
is employed by a majority-controlled subsidiary of the Company, for purposes of
Sections 2.01(h)(1), 2.01(h)(2), and 2.01(h)(4), “Company” shall mean such
subsidiary.
	 
	 	(2)	 	“Person” shall mean any individual or individuals other than the
Participant, his affiliates and associates, the Company, any subsidiary of the
Company, any employee benefit plan of the Company or of any subsidiary of the
Company, or any person or entity organized, appointed or established by the
Company for or pursuant to the terms of any such employee benefit plan.






	 	(i)	 	Code. “Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(j)	 	Committee. “Committee” means the Committee appointed by the Board (or
its delegee) to administer the Plan pursuant to Article 8.
	 
	 	(k)	 	Company. “Company” means AMETEK, Inc., a Delaware corporation, and any
directly or indirectly affiliated subsidiary corporations, any other affiliate
designated by the Board, or any successor to the business thereof.
	 
	 	(l)	 	Compensation. “Compensation” means “compensation” as such term is
defined in Treas. Reg. § 1.415(c)-2(d)(4) without regard to the limitations of Code §
415, excluding reimbursements or other expense allowances, fringe benefits, moving
expenses, deferred compensation, welfare benefits, sign-on bonuses, imputed income with
respect to split dollar life insurance, severance benefits (paid in any form), and
amounts described in Treas. Reg. § 1.415(c)-1(c) but including (1) (a) amounts
contributed by a Participant to a Plan that is “qualified” under Section 401(a) of the
Code and (b) amounts otherwise excludible from the Participant’s gross income under
Section 125 of the Code and Section 132(f)(4) of the Code and (2) not including
Bonus Compensation paid during that year but earned in the preceding year.
	 
	 	(m)	 	Disability. “Disability” means a 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 (12) months that (1) renders a
Participant unable to engage in any substantial gainful activity or (2) results in a
Participant receiving income replacement benefits for a period of not less than three
(3) months under an accident and health plan covering employees of the Company. The
Committee shall determine the existence of Disability, in its sole discretion, and may
rely on advice from a medical examiner satisfactory to the Committee in making the
determination. A Participant will also be considered disabled if he has been
determined to be totally disabled by the Social Security Administration. The term
“Disability” is intended to comply with section 409A(a)(2)(C) of the Code and shall be
interpreted to permit a Participant to take a distribution in any circumstance that
would be permitted under section 409A(a)(2)(C) of the Code.
	 
	 	(n)	 	Distribution Option. “Distribution Option” means the two distribution
options that






AMETEK, Inc., Deferred Compensation Plan


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	 	 	 	are available under the Plan: the Retirement Distribution Option and the In-Service
Distribution Option.
	 
	 	(o)	 	Eligible Bonus Compensation. “Eligible Bonus Compensation” is the
amount calculated under the following formula:






	 	(1)	 	“Total Plan Year Compensation” is an Eligible Employee’s Bonus
Compensation that is earned (not paid) during a Plan Year plus the Eligible
Employee’s Compensation for that same year.
	 
	 	(2)	 	If the Eligible Employee’s Total Plan Year Compensation is less
than or equal to the compensation limit in effect under section 401(a)(17) of
the Code for the Plan Year, then the Eligible Employee’s Eligible Bonus
Compensation for that year shall be $0.
	 
	 	(3)	 	If the Eligible Employee’s Total Plan Year Compensation is
greater than the compensation limit in effect under section 401(a)(17) for the
Plan Year, then the Eligible Employee’s Eligible Bonus Compensation for that
year shall be the lesser of (A) the Eligible Employee’s Bonus Compensation or
(B) the amount by which the Eligible Employee’s Total Plan Year Compensation
exceeds the compensation limit in effect under section 401(a)(17) of the Code
for that year.






	 	(p)	 	Eligible Employee. “Eligible Employee” means an employee of the
Company who is designated by the Committee, in its sole discretion, to be eligible to
participate in the Plan pursuant to Section 3.01.
	 
	 	(q)	 	Investment Funds. “Investment Funds” means the separate deemed
investment funds identified on Exhibit A of the Plan that a Participant may direct be
used as a method to measure the growth of the Participant’s Bonus Compensation
Deferrals, if any, while credited to the Participant’s Accounts.
	 
	 	(r)	 	In-Service Distribution Account. “In-Service Distribution Account”
means the Account maintained for a Participant to which Bonus Compensation Deferrals
are credited pursuant to the In-Service Distribution Option.
	 
	 	(s)	 	In-Service Distribution Option. “In-Service Distribution Option” means
the Distribution Option pursuant to which benefits are payable in accordance with
Section 6.02.
	 
	 	(t)	 	Participant. “Participant” means any employee who is eligible and has
become a participant pursuant to Section 3.01. Such employee shall remain a
Participant in this Plan until such time as all benefits payable under this Plan have
been paid in accordance with the provisions hereof.
	 
	 	(u)	 	Plan. “Plan” means this AMETEK, Inc. Deferred Compensation Plan, as it
may be amended from time to time.
	 
	 	(v)	 	Plan Year. “Plan Year” means the 12-month period beginning on each
January 1 and ending on the following December 31.
	 
	 	(w)	 	Retirement. “Retirement” or “Retires” means a Participant’s Separation
from






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	 	 	 	Service with the Company (for reasons other than death) at or after attaining age 55
and completing 10 or more Years of Service.
	 
	 	(x)	 	Retirement Distribution Account. “Retirement Distribution Account”
means the Account maintained for a Participant to which Bonus Compensation Deferrals
are credited pursuant to the Retirement Distribution Option.
	 
	 	(y)	 	Retirement Distribution Option. “Retirement Distribution Option” means
the Distribution Option pursuant to which benefits are payable in accordance with
Section 6.01.
	 
	 	(z)	 	Section. “Section” means a section of this Plan.
	 
	 	(aa)	 	Separation from Service. “Separates from Service” or “Separation from
Service” means separation from service within the meaning of section 409A of the Code.
	 
	 	(bb)	 	Voting Securities. “Voting Securities” means the common securities of
AMETEK, Inc. that carry the right to vote generally in the election of directors.
	 
	 	(cc)	 	Year of Service. “Year of Service” means the 12-month period following
the date that the Participant first performs an hour of service for the Company and
each consecutive 12-month period following the anniversary of that date that is
completed before the Participant Separates from Service.






	2.02.	 	Construction.
	 
	 	 	For purposes of the Plan, unless the contrary is clearly indicated by the context,






	 	(a)	 	the use of the masculine gender shall also include within its meaning the
feminine and vice versa,
	 
	 	(b)	 	the use of the singular shall also include within its meaning the plural and
vice versa, and
	 
	 	(c)	 	the word “include” shall mean to include without limitation.






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ARTICLE 3. ELIGIBILITY AND PARTICIPATION





	3.01.	 	Eligibility and Participation.
	 
	 	 	Eligibility to participate in the Plan shall be limited to that select group of management
and/or highly compensated employees of the Company whom the Committee designates as eligible
to participate in the Plan. An Eligible Employee shall become a Participant in the Plan
when he first makes a Bonus Compensation Deferral election pursuant to Article 4.
	 
	3.02.	 	Change in Employment Status.
	 
	 	 	If the Committee determines that a Participant’s position is no longer at a level that
warrants reward through participation in this Plan, but does not terminate the Participant’s
employment with the Company, (1) the Participant shall not be permitted to make a Bonus
Compensation Deferral election for the Plan Year specified by the Committee and each Plan
Year thereafter until the Committee determines that the Participant has again become
employed in a position that warrants full participation in the Plan; and (2) the
Participant’s benefits under this Plan shall be limited to the balance in the Participant’s
Accounts as of the date so specified by the Committee, which shall be adjusted each
subsequent year that the Participant remains an active employee of the Company (and does not
again become employed in a position that warrants full participation in the Plan) by the
deemed earnings on the Investment Funds elected by the Participant.
	 
	 	 	If the Committee, in its sole discretion, determines that the Participant no longer
qualifies as a member of a select group of management or highly compensated employees, as
determined in accordance with ERISA, the Committee may, in its sole discretion, take any
action permitted under section 409A of the Code as it deems necessary to preserve the status
of the Plan as a “top hat” plan under ERISA.






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ARTICLE 4. ELECTION REQUIREMENTS





	4.01.	 	Bonus Compensation Deferral Election Filing Deadline.






	 	(a)	 	Except as provided in Sections 4.02 and 4.03, below, an election to defer an
amount equal to all or part of an Eligible Employee’s Bonus Compensation shall be filed
with the Committee at least six months before the end of the Plan Year in which the
Bonus Compensation is earned (i.e. by June 30th); provided that, if the Bonus
Compensation is not “performance-based compensation” within the meaning of section 409A
of the Code, the Bonus Compensation Deferral election shall be filed with the Committee
no later than the last day of the Plan Year preceding the Plan Year in which the Bonus
Compensation is earned. The election, once filed, shall be irrevocable and shall
remain in effect until the end of the Plan Year to which it pertains.
	 
	 	(b)	 	An election made pursuant to Section 4.01(a) shall be in writing, in a form
acceptable to the Committee, and shall specify such information as required by the
Committee. The Committee may establish minimum or maximum amounts that may be deferred
under this Section 4.01 and may change such standards from time to time. Any such
limits shall be communicated by the Committee to the Participants before the
commencement of a Plan Year.






	4.02.	 	New Eligible Employees.
	 
	 	 	The Committee may, in its discretion, permit an employees who first becomes an Eligible
Employee after the beginning of a Plan Year to make a Bonus Compensation Deferral for that
Plan Year by filing a completed and fully executed deferral election form, in accordance
with Section 4.01(a), within thirty (30) days following the date the employee becomes an
Eligible Employee, unless he was previously eligible to participant in another account-based
deferred compensation arrangement of the Company. If the Eligible Employee was previously
eligible to participate in another account-based deferred compensation arrangement of the
Company, the Eligible Employee shall not be permitted to make a Bonus Compensation Deferral
under this Section 4.02 or Section 4.01 for the Plan Year in which he is hired but shall be
permitted to make a Bonus Compensation Deferral pursuant to Section 4.01 for the Plan Year
after the Plan Year in which he is hired and each subsequent Plan Year. Any Bonus
Compensation Deferral made under this Section 4.02 shall apply only to Bonus Compensation
and Compensation earned for services performed after the election is made.
	 
	4.03.	 	2005 Plan Year Re-Deferral Election.
	 
	 	 	For the 2005 Plan Year, an Eligible Employee may file the requisite deferral election form
by March 15, 2005, to defer Bonus Compensation actually or constructively received during
the 2005 Plan Year after the date the election is filed.






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ARTICLE 5. ACCOUNTS





	5.01.	 	Accounts.
	 
	 	 	The Committee shall establish and maintain separate Accounts with respect to each
Participant. A Participant’s Accounts shall consist of the Retirement Distribution Account
and/or an In-Service Distribution Account. The amount of the Bonus Compensation Deferral
pursuant to Sections 4.01, 4.02, or 4.03 shall be credited by the Company to the
Participant’s Accounts on the day such Bonus Compensation would otherwise have been paid, in
accordance with the Distribution Options elected by the Participant on his deferral election
form. The Participant’s Accounts shall be reduced by the amount of payments made by the
Company to the Participant or the Participant’s Beneficiary pursuant to this Plan and shall
be adjusted to reflect investment gains and losses.
	 
	5.02.	 	Amounts Allocated to Accounts.
	 
	 	 	An Eligible Employee shall allocate his Bonus Compensation Deferrals between the
Distribution Options; provided, however that 100% of such Deferrals may be allocated to one
or the other of the Distribution Options.
	 
	5.03.	 	Earnings on Accounts.
	 
	 	 	A Participant’s Accounts shall be credited with earnings from time to time in accordance
with the deemed earnings on Investment Funds elected by the Participant. Participants may
allocate their Retirement Distribution Account and their In-Service Distribution Account
among the Investment Funds available under the Plan in increments specified by the
Committee. The deemed rate of return, positive or negative, credited under each Investment
Fund is based upon the actual investment performance of the Investment Funds listed on
Exhibit A of the Plan. The Company reserves the right, on a prospective basis, to add or
delete Investment Funds.
	 
	5.04.	 	Vesting of Accounts
	 
	 	 	A Participant’s Accounts shall be 100% vested at all times. Notwithstanding anything to the
contrary in this Section 5.04, the Committee may cause a forfeiture with respect to all or a
portion of a Participant’s Accounts if the Committee determines that the Participant’s
Separation from Service is for Cause.
	 
	5.05.	 	No Actual Investment.
	 
	 	 	Notwithstanding that the returns credited to Participants’ Accounts are based upon the
actual performance of the corresponding deemed Investment Funds selected by a Participant,
the Company shall not be obligated to invest any Bonus Compensation Deferrals by
Participants under this Plan and the Participant shall have no interest in any amounts that
are actually invested to pay benefits under this Plan.
	 
	5.06.	 	Statement of Accounts.
	 
	 	 	The Committee shall provide to each Participant, not less frequently than annually, a
statement in such form as the Committee deems desirable setting forth the balance standing
to the credit of each Participant in each of his Accounts.






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	5.07.	 	Distributions from Accounts.
	 
	 	 	Any distribution made to or on behalf of a Participant from one or more of the Participant’s
Accounts in an amount that is less than the entire balance of any such Account shall be made
pro rata from each of the Investment Funds to which such Account is then allocated except,
and only to the extent, that the Participant (or Beneficiary, if applicable) elects, before
the scheduled distribution date, to receive a distribution in shares of Voting Securities,
up to the value of the amount to be distributed.






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ARTICLE 6. PAYMENT OF PLAN BENEFITS





	6.01.	 	Payments from the Retirement Distribution Account.
	 
	 	 	Except as provided in Sections 6.03, 6.04, 6.06, and 6.06, benefits under the Retirement
Distribution Option shall be paid to a Participant as follows:






	 	(a)	 	General. Unless otherwise elected pursuant to Section 6.01(b) or
modified pursuant to Section 6.01(c), a Participant who Retires shall receive his
Retirement Distribution Account in the form of a lump sum on the later of (1) the
January 31 following the Participant’s Retirement or (2) the first day of the seventh
month following the Participant’s Retirement.
	 
	 	(b)	 	Distribution Election. A Participant may elect a form or time of
payment for his Retirement Distribution Account other than those provided in Section
6.01(a) by filing a distribution election form for his Retirement Distribution Account
with the Committee at the same time he makes his first Bonus Compensation Deferral
under the Plan to his Retirement Distribution Account. This distribution election
shall determine the time and manner of the distribution from the Participant’s
Retirement Distribution Account under this Section 6.01 if the Participant Retires,
unless the election is modified pursuant to Section 6.01(c).






	 	(1)	 	Optional Forms of Distribution. A Participant who does
not wish to receive his Retirement Distribution Account in the form of a lump
sum may elect to receive his Retirement Distribution Account in the form of up
to five (5) annual installments.
	 
	 	(2)	 	Optional Times for Distribution. A Participant who does
not wish to receive his Retirement Distribution Account as provided in Section
6.01(a) may elect for distribution of his Retirement Distribution Account to
commence on one of the following: (A) January 31 of the second Plan Year
following the Participant’s Retirement or (B) the latest of (i) January 31 of
the Plan Year following the Participant’s Retirement, (ii) January 31 of the
Plan Year following the year in which the Participant becomes age 65, or (iii)
the first day of the seventh month after the Participant’s Retirement.






	 	(c)	 	Modification of Distribution Election. After making his initial
distribution election pursuant to Section 6.01(b) or making a Bonus Compensation
Deferral that is subject to the default distribution rule set forth in Section 6.01(a),
a Participant may file an election with the Committee, in a form satisfactory to the
Committee, to modify the payment date or to specify that his Retirement Distribution
Account be paid in installments rather than a lump sum or in a greater number of annual
installments (but not more than five (5) annual installments); provided, however, that
such election:






	 	(1)	 	is filed with the Committee at least twelve (12) months prior to
the date of the first scheduled payment;
	 
	 	(2)	 	is not effective until at least twelve (12) months after the date
on which the election is made;






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	 	(3)	 	defers the lump sum payment or the first installment payment with
respect to which such election is made for a period of not less than five (5)
years from the date such payment would have otherwise been made;
	 
	 	(4)	 	does not accelerate payment of the Retirement Distribution
Account; and
	 
	 	(5)	 	does not request more than five (5) annual installments.






	 	(d)	 	Amount of Payments.






	 	(1)	 	Lump sum payment. Any lump-sum benefit payable in
accordance with this Section 6.01 shall be paid in an amount equal to the value
of such Retirement Distribution Account as of the last business day of the
calendar month preceding the date of payment.
	 
	 	(2)	 	Installment Payments. If annual installments are elected
in accordance with this Section 6.01, the amount of the first annual installment
payment shall equal (A) the value of the Participant’s Retirement Distribution
Account as of the last business day of the calendar month preceding the date of
payment, divided by (B) the number of annual installment payments elected by the
Participant. The remaining annual installments shall be paid on January 31 of
each succeeding Plan Year in an amount equal to (C) the value of the
Participant’s Retirement Distribution Account as of the last business day of the
immediately preceding calendar month divided by (D) the number of installments
remaining.






	 	(e)	 	Benefits Upon Separation from Service. The Retirement Distribution
Account of a Participant who Separates from Service (other than by reason of the
Participant’s death or Retirement) before the date on which his Retirement Distribution
Account would otherwise be distributed shall be distributed in a lump sum on the later
of (1) the January 31 following the Participant’s Separation from Service or (2) the
first day of the seventh month after the Participant’s Separation from Service.






	6.02.	 	Payments from the In-Service Distribution Account.
	 
	 	 	Except as provided in Sections 6.03, 6.04, 6.06, and 6.06, benefits under the In-Service
Distribution Option shall be paid to a Participant as follows:






	 	(a)	 	General. Except as provided in Section 6.02(e), otherwise elected
pursuant to Section 6.02(b), or otherwise modified in accordance with Section 6.02(c),
a Participant’s In-Service Distribution Account shall be paid in a lump sum on the date
that occurs two years after the Participant first elects to allocate a portion of his
Bonus Compensation Deferral to his In-Service Distribution Account.
	 
	 	(b)	 	Distribution Election. A Participant may elect a different form or
time of payment for his In-Service Distribution Account than provided in Section
6.02(a) by filing a distribution election form for his In-Service Distribution Account
with the Committee at the same time that he makes his first Bonus Compensation Deferral
under the Plan to his In-Service Distribution Account. Except as provided in Section
6.02(e), this distribution election shall determine the time and manner of the
distribution for
the Participant’s entire In-Service Distribution Account under this Section 6.02,
unless the election is modified pursuant to Section 6.02(c).






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	 	(1)	 	Optional Forms of Distribution. A participant who does
not wish to receive his In-Service Distribution Account in the form of a lump
sum may elect to receive his In-Service Distribution Account in the form of up
to five (5) annual installments.
	 
	 	(2)	 	Optional Times for Distribution. A Participant who does
not wish to receive his In-Service Distribution Account as provided in Section
6.02(a) may elect for distribution of his In-Service Distribution Account to
commence on any specified future date.






	 	(c)	 	Modification of Distribution Election. After making his initial
distribution election pursuant to Section 6.02(b) or making a Bonus Compensation
Deferral that is subject to the default distribution rule set forth in Section 6.02(a),
a Participant may file an election with the Committee, in a form satisfactory to the
Committee, to modify the payment date or to specify that his In-Service Distribution
Account be paid in installments rather than a lump sum or in a greater number of annual
installments (but not more than five (5) annual installments); provided, however, that
such election:






	 	(1)	 	is filed with the Committee at least twelve (12) months prior to
the date of the first scheduled payment;
	 
	 	(2)	 	is not effective until at least twelve (12) months after the date
on which the election is made;
	 
	 	(3)	 	defers the lump sum payment or the first installment payment with
respect to which such election is made for a period of not less than five (5)
years from the date such payment would have otherwise been made;
	 
	 	(4)	 	does not accelerate payment of the In-Service Distribution
Account; and
	 
	 	(5)	 	does not request more than five (5) annual installments.






	 	(d)	 	Amount of Payments.






	 	(1)	 	Lump Sum. Any lump-sum amount payable in accordance with
this Section 6.02 shall be paid in an amount equal to the value of such
In-Service Distribution Account as of the last business day of the calendar
month preceding the date of payment.
	 
	 	(2)	 	Installment Payments. If annual installment payments are
elected in accordance with this Section 6.02, the first annual installment
payment shall equal (A) the value of such In-Service Distribution Account as of
the last business day of the calendar month preceding the date of payment,
divided by (B) the number of annual installment payments elected by the
Participant. The remaining annual installments shall be paid on January 31 of
each succeeding Plan Year in an amount equal to (A) the value of such In-Service
Distribution Account as of the last business day of the
immediately preceding calendar month divided by (B) the number of
installments remaining.






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	 	(e)	 	Benefits Upon Separation from Service. If a Participant (1) Separates
from Service prior to the date on which the Participant’s In-Service Distribution
Account would otherwise be distributed, other than by reason of his death, or (2)
elects to allocate a portion of his Bonus Compensation Deferral to his In-Service
Distribution Account after he has already received a distribution from his In-Service
Account in accordance with this Section 6.02, any amounts credited to the Participant’s
In-Service Distribution Account shall be distributed in a lump sum on the later of (1)
January 31 following the Participant’s Separation from Service or (2) the first day of
the seventh month after the Participant’s Separation from Service.






	6.03.	 	Payments Upon Death of Participant.






	 	(a)	 	Death of Participant Before the Commencement of Benefits.
	 
	 	 	 	If a Participant dies before he begins to receive his benefits in accordance with
Section 6.01 or 6.02, benefits shall be paid to the Participant’s Beneficiary in a
lump sum on the first day of the month following the Participant’s death, in lieu of
any benefits otherwise payable under the Plan to or on behalf of such Participant.
The amount of any lump sum benefit payable in accordance with this Section 6.03 shall
equal the value of the Participant’s Account as of the last business day of the
calendar month immediately preceding the date on which such benefit is paid.
	 
	 	(b)	 	Death of Participant After Benefits Have Commenced.
	 
	 	 	 	If a Participant dies after annual installments payable under Section 6.01 or 6.02
from the Participant’s Accounts have commenced, but before the entire balance of any
such Account has been paid, any remaining installments shall be paid in lump sum on
the first day of the month following the Participant’s death.






	6.04.	 	Payments in the Event of an Emergency.






	 	(a)	 	Eligibility for Emergency Benefit.
	 
	 	 	 	If the Committee, in its sole discretion, determines, upon written request of a
Participant, that the Participant has suffered an unforeseeable financial emergency
(within the meaning of section 409A of the Code), the Company shall pay to the
Participant from the Participant’s Accounts, within thirty (30) days following such
determination, an amount necessary to meet the emergency, after deduction of any and
all taxes as may be required pursuant to Section 6.08 (the “Emergency Benefit”). For
purposes of this Plan, an unforeseeable financial emergency is an unexpected need for
cash arising from an illness or accident of the Participant, the Participant’s spouse
or dependent; loss of the Participant’s property due to casualty; or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the Participant. It is intended that the Committee’s determination as
to whether a Participant has suffered an “unforeseeable financial emergency” shall be
made consistent with the requirements under section 409(A) of
the Code. Cash needs arising from foreseeable events such as the purchase of a house
or education expenses for children shall not be considered to be the result of an
unforeseeable financial emergency.






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	 	(b)	 	Source of Payment.
	 
	 	 	 	Emergency Benefits shall be paid first from the Participant’s In-Service Distribution
Account, if any, to the extent the balance of such In-Service Distribution Account is
sufficient to meet the emergency. If the distribution exhausts the In-Service
Distribution Account, the Retirement Distribution Account may be accessed. With
respect to that portion of any Account that is distributed to a Participant as an
Emergency Benefit in accordance with this Section 6.04, no further benefit shall be
payable to the Participant under this Plan.
	 
	 	(c)	 	Restriction on Deferrals.
	 
	 	 	 	Notwithstanding anything in this Plan to the contrary and to the extent permitted by
section 409A of the Code, a Participant who receives an Emergency Benefit in any Plan
Year shall not be entitled to make a Bonus Compensation Deferral for such Plan Year.






	6.05.	 	Payments Upon Disability of Participant.
	 
	 	 	If a participant becomes disabled before he begins to receive his benefits in accordance
with Section 6.01 or 6.02, benefits shall be paid to the Participant in a lump sum within
thirty (30) days after the Committee finds, in its sole discretion, that the Participant has
a Disability.
	 
	6.06.	 	Payments Upon a Change in Control.
	 
	 	 	If there is a Change in Control, a Participant will receive the full amount credited to the
Participant’s Retirement Distribution Account and In-Service Distribution Account in a lump
sum. Any lump-sum benefit payable in accordance with this paragraph shall be paid in, but
not later than January 31 of, the Plan Year following the Plan Year in which such Change in
Control occurs, in an amount equal to the value of such Retirement Distribution Account and
In-Service Distribution Account as of the last business day of the Plan Year preceding the
date of payment.
	 
	6.07.	 	Administrative Acceleration or Delay of Payment.
	 
	 	 	A payment is treated as being made on the date when it is due under the Plan if the payment
is made (a) no earlier than thirty (30) days before the due date specified by the Plan or
(b) on a date no later than the due date specified by the Plan that is either (1) in the
same Plan Year (for a payment whose specified due date is on or before September 30) or (2)
by the fifteenth (15th) day of the third calendar month following the date specified by the
Plan (for a payment whose specified due date is on or after October 1).
	 
	6.08.	 	Withholding.
	 
	 	 	The Company shall withhold from any payment made pursuant to this Plan any taxes the Company
reasonably believes are required to be withheld from such payments under local, state, or
federal law.
	 
	6.09.	 	Payment to Guardian.
	 
	 	 	If a Plan benefit is payable to a minor or a person declared incompetent or to a person
incapable of handling the disposition of the property, the Committee may direct payment to






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	 	 	the guardian, legal representative or person having the care and custody of such minor,
incompetent or person. The Committee may require proof of incompetency, minority,
incapacity or guardianship as it may deem appropriate prior to distribution. Such
distribution shall completely discharge the Committee and Company from all liability with
respect to such benefit.
	 
	6.10.	 	Effect of Payment.
	 
	 	 	The full payment of the applicable benefit under this Article 6 shall completely discharge
all obligations on the part of the Company to the Participant (and the Participant’s
Beneficiary) with respect to the operation of this Plan, and the Participant’s (and
Participant’s Beneficiary’s) rights under this Plan shall terminate.






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ARTICLE 7. BENEFICIARY DESIGNATION





	7.01.	 	Beneficiary Designation.
	 
	 	 	Each Participant shall have the right, at any time, to designate one (1) or more persons or
entity as Beneficiary (both primary as well as secondary) to whom benefits under this Plan
shall be paid in the event of the Participant’s death prior to complete distribution of the
Participant’s Account. Each Beneficiary designation shall be in a written form prescribed
by the Committee and shall be effective only if filed with the Committee during the
Participant’s lifetime.
	 
	7.02.	 	Changing Beneficiary.
	 
	 	 	Any Beneficiary designation may be changed without the consent of the previously named
Beneficiary by the filing of a new Beneficiary designation with the Committee.
	 
	7.03.	 	No Beneficiary Designation.
	 
	 	 	If any Participant fails to designate a Beneficiary in the manner provided above, if the
designation is void, or if the Beneficiary designated by a deceased Participant dies before
the Participant or before complete distribution of the Participant’s benefits, the
Participant’s Beneficiary shall be the person in the first of the following classes in which
there is a survivor:






	 	(a)	 	the Participant’s surviving spouse;
	 
	 	(b)	 	the Participant’s children in equal shares, except that if any of the children
predeceases the Participant but leaves surviving issue, then such issue shall take by
right of representation the share the deceased child would have taken if living; or
	 
	 	(c)	 	the Participant’s estate.






	7.04.	 	Effect of Payment.
	 
	 	 	Payment to the Beneficiary shall completely discharge the Company’s obligations under this
Plan.






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ARTICLE 8. ADMINISTRATION OF THE PLAN





	8.01.	 	Committee Duties.
	 
	 	 	This Plan shall be administered by the Committee, which shall consist of not less than three
(3) persons, who may also be Participants in this Plan, and are named as the initial
Committee in this Plan or as subsequently appointed by the Board or its delegee, except in
the event of a Change in Control as provided in Section 8.05 below. The Committee shall
have the full discretionary authority to (a) make, amend, interpret and enforce all
appropriate rules and regulations for the administration of the Plan and decide or resolve
any and all questions, including interpretations of the Plan, as they may arise in such
administration, and (b) establish and maintain an investment policy for the Plan, select
appropriate Investment Funds to implement the investment policy, monitor the performance of
such Investment Funds, and change the selection of Investment Funds from time to time in a
manner consistent with the objectives of the investment policy. A Committee member who is
also a Participant in this Plan shall be prohibited from voting on any matter which may, in
the opinion of the balance of the Committee, directly affect the Committee member’s
individual rights or benefits under this Plan. A majority vote of the Committee members
permitted to vote shall control any decision.
	 
	8.02.	 	Agents.
	 
	 	 	The Committee may, from time to time, employ agents and delegate to them such administrative
duties as it sees fit, and may from time to time consult with counsel who may be counsel to
the Company.
	 
	8.03.	 	Binding Effect of Decisions.
	 
	 	 	The decision or action of the Committee with respect to any question arising out of or in
connection with the administration, interpretation and application of the Plan and the rules
and regulations promulgated hereunder shall be final, conclusive and binding upon all
persons having any interest in the Plan.
	 
	8.04.	 	Indemnity of Committee.
	 
	 	 	The Company shall indemnify and hold harmless each member of the Committee from any and all
claims, losses, damages, expenses (including counsel fees) and liability (including any
amounts paid in settlement of any claim or any other matter with the consent of the Board)
arising from any act or omission of such member, except when the same is due to gross
negligence or willful misconduct.
	 
	8.05.	 	Election of Committee After Change in Control.
	 
	 	 	After a Change in Control, vacancies on the Committee shall be filled by majority vote of
the remaining Committee members and Committee members may be removed only by such a vote.
If no Committee members remain, a new Committee shall be elected by majority vote of the
Participants in the Plan immediately preceding such Change in Control. No amendment shall
be made to Article 8 or other Plan provisions regarding Committee authority with respect to
the Plan without prior approval by the Committee.






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ARTICLE 9. CLAIMS PROCEDURE





	9.01.	 	Claim.
	 
	 	 	Any person or entity claiming a benefit, requesting an interpretation or ruling under the
Plan (hereinafter referred to as “Claimant”), or requesting information under the Plan shall
present the request in writing to the Corporate Human Resources Department, which shall
respond in writing as soon as practical, but not later than ninety (90) days after receipt
of the claim, unless the Corporate Human Resources Department notifies the Claimant that
special circumstances require an additional period of time (not to exceed 90 days) to review
the claim properly.
	 
	9.02.	 	Denial of Claim.
	 
	 	 	If the claim or request is denied, the written notice of denial shall state:






	 	(a)	 	the reasons for denial, with specific reference to the Plan provisions on which
the denial is based;
	 
	 	(b)	 	a description of any additional material or information required and an
explanation of why it is necessary; and
	 
	 	(c)	 	an explanation of the Plan’s claim review procedure, including a statement of
the Claimant’s right to bring a civil action under section 502(a) of ERISA if the claim
denial is denied (in whole or in part) on appeal.






	9.03.	 	Review of Claim.
	 
	 	 	Any Claimant whose claim or request is denied or who has not received a response within the
time limits set forth above may request a review by notice given in writing to the
Committee. Such request must be made within sixty (60) days after receipt by the Claimant
of the written notice of denial, or, in the event Claimant has not received a timely
response, within 60 days after the date the Corporate Human Resources Department was
required to respond to the claim under Section 9.01. The claim or request shall be reviewed
by the Committee which may, but shall not be required to, grant the Claimant a hearing. On
review, the claimant may have representation, examine pertinent documents, and submit issues
and comments in writing.
	 
	9.04.	 	Final Decision.
	 
	 	 	The decision on review shall normally be made within sixty (60) days after the Committee’s
receipt of claimant’s claim or request. If an extension of time is required for a hearing
or other special circumstances, the Claimant shall be notified and the time limit shall be
one hundred twenty (120) days. The decision shall be in writing and shall state the reasons
and the relevant Plan provisions. All decisions on review shall be final and bind all
parties concerned.
	 
	9.05.	 	Claims for Disability Benefits.
	 
	 	 	To the extent required by law, the Committee shall develop alternative claims procedures
that shall apply with respect to claims for Disability benefits.






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ARTICLE 10. AMENDMENT AND TERMINATION OF PLAN



The Plan may be amended, suspended, discontinued or terminated at any time by the Board; provided,
however, that no such amendment, suspension, discontinuance or termination shall reduce or in any
manner adversely affect the rights of any Participant with respect to benefits that are payable or
may become payable under the Plan based upon the balance of the Participant’s Retirement Account
and In-Service Distribution Account as of the effective date of such amendment, suspension,
discontinuance or termination.






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ARTICLE 11. MISCELLANEOUS





	11.01.	 	Hypothetical Accounts.
	 
	 	 	Each account and investment established under the Plan shall be hypothetical in nature and
shall be maintained for bookkeeping purposes only. The accounts established under the Plan
shall hold no actual funds or assets. Any liability of the Company to any Participant,
former Participant, or Beneficiary with respect to a right to payment shall be based solely
upon contractual obligations created by the Plan. Neither the Company, the Board, nor any
other person shall be deemed to be a trustee of any amounts to be paid under the Plan.
Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create
or be construed to create a trust of any kind, or a fiduciary relationship, between or among
the Company, a Participant, or any other person.
	 
	11.02.	 	Company Obligation.
	 
	 	 	The Company shall not be required to fund any obligations under the Plan. Except as
provided in Section 11.03, any assets that may be accumulated by the Company to meet its
obligations under the Plan shall for all purposes be part of the general assets of the
Company. To the extent that any Participant or Beneficiary acquires a right to receive
payments under the Plan for which the Company is liable, such rights shall be no greater
than the rights of any unsecured general creditor of the Company.
	 
	11.03.	 	Trust Fund.
	 
	 	 	The Company shall be responsible for the payment of all benefits provided under the Plan.
Before a Change in Control, at its discretion, the Company may establish one (1) or more
trusts, with such trustees as the Committee may approve, for the purpose of assisting in the
payment of such benefits. Following a Change in Control, the Company shall establish one
(1) or more trusts, with such trustees as the Committee may approve, for the purpose of
assisting in the payment of such benefits. If, as a result of a Change in Control, Voting
Securities will no longer exist, the Committee may, in its sole discretion, allocate the
value of each Participant’s Voting Securities to an Investment Fund. Although such a trust
may be irrevocable, its assets shall be held for payment of all Company’s general creditors
in the event of insolvency. To the extent any benefits provided under the Plan are paid
from any such trust, Company shall have no further obligation to pay them. If not paid from
the trust, such benefits shall remain the obligation of Company. No assets of the trust or
the Company shall become restricted to provide benefits under the Plan in connection with a
change in the Company’s financial health.
	 
	11.04.	 	Nonassignability.
	 
	 	 	Neither a Participant nor any other person shall have any right to commute, sell, assign,
transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or
convey in advance of actual receipt the amounts, if any, payable hereunder, or any part
thereof, which are, and all rights to which are, expressly declared to be unassignable and
non-transferable. No part of the amounts payable shall, prior to actual payment, be subject
to seizure or sequestration for the payment of any debts, judgements, alimony or separate
maintenance owed by a Participant or any other person, nor be transferable by operation of
law in the event of a Participant’s or any other person’s bankruptcy or insolvency, except
that the Committee may recognize a domestic relations order in accordane with procedures
that i may establish for this purpose.






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	11.05.	 	Not a Contract of Employment.
	 
	 	 	This Plan shall not constitute a contract of employment between Company and the Participant.
Nothing in this Plan shall give a Participant the right to be retained in the service of
Company or to interfere with the right of the Company to discipline or discharge a
Participant at any time.
	 
	11.06.	 	Protective Provisions.
	 
	 	 	A Participant will cooperate with Company by furnishing any and all information requested by
Company, in order to facilitate the payment of benefits hereunder, and by taking such other
action as may be requested by Company.
	 
	11.07.	 	Governing Law.
	 
	 	 	The Plan shall be construed and enforced in accordance with applicable federal law and, to
the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania
(without regard to the legislative or judicial conflict of laws rules of any state or other
jurisdiction).
	 
	11.08.	 	Severability.
	 
	 	 	If any provision of this Plan is held unenforceable, the remainder of the Plan shall
continue in full force and effect without regard to such unenforceable provision and shall
be applied as though the unenforceable provision were not contained in the Plan. In
addition, if any provision of the Plan shall be found to violate section 409A of the Code or
otherwise result in benefits under the Plan being subject to income tax prior to
distribution, such provision shall be void and unenforceable, and the Plan shall be
administered without regard to such provision.
	 
	11.09.	 	Headings.
	 
	 	 	Headings are inserted in this Plan for convenience of reference only and are to be ignored
in the construction of the provisions of the Plan.
	 
	11.10.	 	Notice.
	 
	 	 	Any notice required or permitted under the Plan shall be sufficient if in writing and hand
delivered or sent by registered mail, certified mail, or reputable overnight delivery
service. Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail or overnight delivery, as of the date shown on the postmark on the receipt for
registration or certification or on the records of the overnight delivery company. Mailed
notice to the Committee shall be directed to the Company’s address. Mailed notice to a
Participant or Beneficiary shall be directed to the individual’s last known address in
Company’s records.
	 
	11.11.	 	Successors.
	 
	 	 	The provisions of this Plan shall bind the Company and its successors and assigns. The term
successors as used herein shall include any corporate or other business entity which shall,
whether by merger, consolidation, purchase or otherwise acquire all or substantially all
of the business and assets of Company, and successors of any such corporation or other
business entity.






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     IN WITNESS WHEREOF, and as evidence of the adoption of this Plan by the Company, AMETEK, Inc.
has executed the same this 24th day of October, 2007.



	 	 	 	 	 	 	 
	 	 	AMETEK, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	/s/ Henry J. Policare	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Henry J. Policare	 	 
	 
	 	 	 	 	 	 
	 

	 	DATE:	 	11/1/07	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ATTEST	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	/s/ Kathryn E. Sena	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Corporate Secretary	 	 








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EXHIBIT A TO AMETEK, INC. DEFERRED COMPENSATION PLAN




LIST OF INVESTMENT FUNDS





	1.	 	The “AMETEK Fund” which consists of deemed investments in whole and fractional shares
of Voting Securities based on the average closing price of the shares on the principal
exchange on which the shares are traded for the last 10 trading days of the month preceding
the deemed investment. Deemed dividends on the shares allocated to the AMETEK Fund shall be
credited to the Fund during a Plan Year when dividends are actually paid on shares of Voting
Securities and shall be deemed to be invested in additional shares of Voting Securities on the
last business day of such Plan Year based on the closing price of the shares on the principal
exchange on which the shares are traded for the first 10 trading days of December preceding
the deemed investment.
	 
	2.	 	The “Interest Fund” which shall be deemed to earn compound interest on principal at
one and one-half percent higher than the 10-year Treasury Note rate as set forth in The Wall
Street Journal as of the first business day of each calendar quarter.








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APPENDIX A



The following Plan provisions apply only to amounts earned and vested (within the meaning of
Section 409A of the Code) before January 1, 2005, and any earnings on such amounts (“Grandfathered
Amounts”). Amounts earned and vested after December 31, 2004, and any earnings thereon, are
subject to the provisions of the Plan as amended and restated, effective January 1, 2005, or any
subsequent amendment and restatement of the Plan.



The purpose of this Appendix A is to preserve the terms of the Plan that govern Grandfathered
Amounts, and to prevent the Grandfathered Amounts from becoming subject to Section 409A of the
Code. No amendment to this Appendix A that would constitute a “material modification” for purposes
of Section 409A shall be effective unless the amending instrument specifically provides that it is
intended to materially modify this Appendix A and to cause the Grandfathered Amounts to become
subject to Section 409A of the Code.



Although this Appendix A is intended to prevent the Grandfathered Amounts from being subject to
Section 409A, neither the Company nor any Employer (nor any representative of the Company) shall be
liable for any adverse tax consequence suffered by a Participant or Beneficiary if a Grandfathered
Amount becomes subject to Section 409A.




AMETEK, Inc.

Deferred Compensation Plan




Effective October 1, 1999




ARTICLE 1

PURPOSE




     In recognition of the services provided by certain key employees, the Board of Directors of
AMETEK, Inc. hereby adopts the AMETEK, Inc Deferred Compensation Plan (the “Plan”) to make
additional retirement benefits and increased financial security, on a tax-favored basis, available
to those individuals, effective October 1, 1999.



ARTICLE 2

DEFINITIONS




     Affiliate. “Affiliate” means any firm, partnership, or corporation that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with AMETEK. “Affiliate” also includes any other organization similarly related to the
Company that is designated as such by the Board.



     AMETEK. “AMETEK” means AMETEK, Inc.



     Beneficiary. “Beneficiary” means the person or persons designated as such in
accordance with Section 12.3.







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     Board. “Board” means the Board of Directors of AMETEK.



     Bonus Compensation. “Bonus Compensation” means the portion of an Eligible Employee’s
Compensation consisting of the amount of the incentive to be paid to an Eligible Employee under the
Company’s incentive compensation plan for a Plan Year which does not include any bonus paid to an
Eligible Employee and characterized by the Company as a “sign on bonus” or other “non-recurring
incentive bonus.”



     Bonus Compensation Deferral. “Bonus Compensation Deferral” means that portion of
Bonus Compensation as to which an Eligible Employee has made an annual irrevocable election to
defer receipt until the date specified under the In-Service Distribution Option and/or the
Retirement Distribution Option.



     Change of Control. “Change of Control” means:



     1. Any person (except the Participant, the Participant’s affiliates and associates, the
Company, any subsidiary of the Company, any employee benefit plan of the Company or of any
subsidiary of the Company, or any person or entity organized, appointed or established by the
Company for or pursuant to the terms of any such employee benefit plan), together with all
affiliates and associates of such person, becomes the beneficial owner, directly or indirectly, in
the aggregate of 20% or more of the value of the outstanding equity or combined voting power of the
then outstanding Voting Securities; or



     2. The stockholders of AMETEK approve a merger or consolidation the result of which is that
the stockholders of AMETEK do not own or control at least 50% or more of the value of the
outstanding equity or combined voting power of the then outstanding Voting Securities, or there
occurs a sale or other disposition of all or substantially all of AMETEK’s assets or a plan of
liquidation is approved; provided, however, that an internal reorganization, even if the employment
of the Participant is transferred to another company, shall not constitute a “Change of Control” if
the stockholders of AMETEK own or control, directly or indirectly, at least 50% or more of the
value of the outstanding equity or combined voting power of the then outstanding voting securities
of the new company entitled to vote generally in the election of directors of that company.



     Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time.



     Committee. “Committee” means the persons appointed by the Board to administer the
Plan and which also may act for the Company or the Board in making decisions and performing
specified duties under the Plan.



     Company. “Company” means AMETEK and any Affiliate which is authorized by the Board to
adopt the Plan and cover its Eligible Employees and whose designation as such has become effective
upon acceptance of such status by the board of directors of the Affiliate. An Affiliate may revoke
its acceptance of such designation at any time, but until such acceptance has been revoked, all the
provisions of the Plan and amendments thereto shall apply to the Eligible Employees of the
Affiliate. In the event the designation is revoked by the board of directors of an Affiliate, the
Plan shall be deemed terminated only with respect to such Affiliate.



     Compensation. “Compensation” shall mean Bonus Compensation earned in a Plan Year plus
the total remuneration paid to the Eligible Employee for the Plan Year in which the Bonus
Compensation is earned, in excess of the compensation limit of section 401(a)(17) of the Code, as
in effect from time to time ($160,000 on the Effective Date).





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     Disabled. “Disabled” means a mental or physical condition which would qualify a
Participant for benefits under the AMETEK Long Term Disability Plan if he or she were a participant
in that plan.



     Distribution Option. “Distribution Option” means the two distribution options which
are available under the Plan, consisting of the Retirement Distribution Option and the In-Service
Distribution Option.



     Distribution Option Account. “Distribution Option Account” or “Accounts” means, with
respect to a Participant, the Retirement Distribution Account and/or the In-Service Distribution
Account established on the books of account of the Company, pursuant to Section 5.1.



     Earnings Crediting Options. “Earnings Crediting Options” means the deemed Investment
Funds that may be selected by the Participant from time to time pursuant to which deemed earnings
are credited to the Participant’s Distribution Option Accounts.



     Effective Date. “Effective Date” means the effective date of the Plan which is
October 1, 1999.



     Eligible Employee. “Eligible Employee” means an Employee who (i) the Committee
determines is scheduled, in the next Plan Year, to have Compensation, and (ii) is designated by the
Committee, acting on behalf of the Company, as eligible to participate in the Plan.



     Employee. “Employee” means any individual employed by the Company on a regular,
full-time basis (in accordance with the personnel policies and practices of the Company), including
citizens of the United States employed outside of their home country and resident aliens employed
in the United States; provided, however, that to qualify as an “Employee” for purposes of the Plan,
the individual must be a member of a group of “key management or other highly compensated
employees” within the meaning of Sections 201, 301 and 401 of the Employee Retirement Income
Security Act of 1974, as amended.



     Enrollment Agreement. “Enrollment Agreement” means the authorization form which an
Eligible Employee files with the Committee to participate in the Plan.



     Investment Funds. “Investment Funds” means the separate deemed investments which a
Participant may direct be used to value the growth of the Participant’s Bonus Compensation
Deferrals while credited to the Participant’s Accounts. On the Effective Date, there shall be two
Investment Funds. One Investment Fund shall be the “AMETEK Fund” consisting of deemed investments
in whole and fractional shares of Voting Securities based on the average closing price of the
shares on the principal exchange on which the shares are traded for the last 10 trading days of the
month preceding the deemed investment. Deemed dividends on the shares allocated to the AMETEK Fund
shall be credited to the Fund during a Plan Year when dividends are actually paid on shares of
Voting Securities and shall be deemed to be invested in additional shares of Voting Securities on
the last business day of such Plan Year based on the closing price of the shares on the principal
exchange on which the shares are traded for the first 10 trading days of December preceding the
deemed investment. The second Investment Fund shall be the “Interest Fund” which shall be deemed
to earn compound interest on principal at one and one-half percent higher than the 10-year Treasury
Note rate as set forth in The Wall Street Journal as of the first business day of each
calendar quarter.





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     In-Service Distribution Account. “In-Service Distribution Account” means the Account
maintained for a Participant to which Bonus Compensation Deferrals are credited pursuant to the
In-Service Distribution Option.



     In-Service Distribution Option. “In-Service Distribution Option” means the
Distribution Option pursuant to which benefits are payable in accordance with Section 7.2.



     Participant. “Participant” means an Eligible Employee who has filed a completed and
executed Enrollment Agreement with the Committee or its designee and is participating in the Plan
in accordance with the provisions of Article 4. In the event of the death or incompetency of a
Participant, the term shall mean the Participant’s personal representative or guardian. An
individual shall remain a Participant until that individual has received full distribution of any
amount credited to the Participant’s Account.



     Plan. “Plan” means this plan, called the AMETEK, Inc. Deferred Compensation Plan, as
amended from time to time.



     Plan Year. “Plan Year” means the 12 month period beginning on each January 1 and
ending on the following December 31 except that the first Plan Year shall begin on the Effective
Date.



     Retirement. “Retirement” means the termination of the Participant’s Service with the
Company (for reasons other than death) at or after age 65, or, if the Participant has 10 or more
years of Service, at or after age 55.



     Retirement Distribution Account. “Retirement Distribution Account” means the Account
maintained for a Participant to which Bonus Compensation Deferrals are credited pursuant to the
Retirement Distribution Option.



     Retirement Distribution Option. “Retirement Distribution Option” means the
Distribution Option pursuant to which benefits are payable in accordance with Section 7.1.



     Service. “Service” means the period of time during which an employment relationship
exists between an Employee and the Company ending on the Participant’s Termination Date, but
including any period during which the Employee is on an approved leave of absence, whether paid or
unpaid. “Service” also includes employment with an Affiliate if an Employee transfers directly
between the Company and the Affiliate.



     Termination Date. “Termination Date” means the date of termination of a Participant’s
Service with the Company and its Affiliates and shall be determined without reference to any
compensation continuation arrangement or severance benefit arrangement that may be applicable.



     Voting Securities. “Voting Securities” means the common securities of AMETEK which
carry the right to vote generally in the election of directors.



ARTICLE 3

ADMINISTRATION OF THE PLAN AND DISCRETION




     3.1 The Committee shall have full power and authority to interpret the Plan, to prescribe,
amend and rescind any rules, forms and procedures as it deems necessary or appropriate for the
proper administration of the Plan and to make any other determinations and to





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take any other such actions as it deems necessary or advisable in carrying out its duties under the
Plan. All action taken by the Committee arising out of, or in connection with, the administration
of the Plan or any rules adopted thereunder, shall, in each case, lie within its sole discretion,
and shall be final, conclusive and binding upon the Company, the Board, all Employees, all
Beneficiaries and all persons and entities having an interest therein.



     3.2 All expenses of administering the Plan shall be paid by the Company.



     3.3 The Company shall indemnify and hold harmless each member of the Committee from any and
all claims, losses, damages, expenses (including counsel fees) and liability (including any amounts
paid in settlement of any claim or any other matter with the consent of the Board) arising from any
act or omission of such member, except when the same is due to gross negligence or willful
misconduct.



     3.4 Any decisions, actions or interpretations to be made under the Plan by the Company, the
Board or Committee, acting on behalf of either, shall be made in its respective sole discretion,
not as a fiduciary and need not be uniformly applied to similarly situated individuals and shall be
final, binding and conclusive on all persons interested in the Plan.



ARTICLE 4

PARTICIPATION




     4.1 Election to Participate. Annually, each Eligible Employee shall be offered the
opportunity to elect a Bonus Compensation Deferral. Any Eligible Employee may enroll in the Plan
effective as of the first day of a Plan Year by filing a completed and fully executed Enrollment
Agreement with the Committee by March 31 of the Plan Year during which such Bonus Compensation is
to be earned. Pursuant to said Enrollment Agreement, the Eligible Employee shall irrevocably elect
(a) the percentage, in a whole percentage, or the dollar amount the Eligible Employee desires to be
the Eligible Employee’s Bonus Compensation Deferral (as a result of payroll reduction), (b) the
Distribution Option Account(s), in 25% increments, to which such amounts will be credited, (c) the
Investment Fund(s) selected by the Participant and (d) such other information as the Committee
shall require. The Enrollment Agreement filed by an Eligible Employee must also set forth the
Participant’s initial election as to the time and manner of distribution of amounts credited to,
and related earnings from, the Retirement Distribution Account and/or the In-Service Distribution
Account established pursuant to that Enrollment Agreement. The Committee may establish minimum or
maximum amounts that may be deferred under this Section and may change such standards from time to
time. Any such limits shall be communicated by the Committee to the Participants prior to the
commencement of a Plan Year.



     4.2 New Eligible Employees. The Committee may, in its discretion, permit Employees
who first become Eligible Employees after the beginning of a Plan Year to enroll in the Plan for
that Plan Year by filing a completed and fully executed Enrollment Agreement, in accordance with
Section 4.1, as soon as practicable following the date the Employee becomes an Eligible Employee
but, in any event, within 30 days after such date.



ARTICLE 5

DISTRIBUTION OPTION ACCOUNTS




     5.1 Distribution Option Accounts. The Committee shall establish and maintain separate
Distribution Option Accounts with respect to each Participant. A Participant’s Distribution Option
Accounts shall consist of the Retirement Distribution Account and/or an In-





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Service Distribution Account. The amount of the Bonus Compensation Deferral pursuant to Section
4.1 or Section 4.2 shall be credited by the Company to the Participant’s Distribution Option
Accounts on the day such Bonus Compensation would otherwise have been paid, in accordance with the
Distribution Option(s) irrevocably elected by the Participant in the Enrollment Agreement. Any
amount once taken into account as Compensation for purposes of this Plan shall not be taken into
account thereafter. The Participant’s Distribution Option Accounts shall be reduced by the amount
of payments made by the Company to the Participant or the Participant’s Beneficiary pursuant to
this Plan.



     5.2 Earnings on Distribution Option Accounts. A Participant’s Distribution Option
Accounts shall be credited with earnings in accordance with the Earnings Crediting Options elected
by the Participant from time to time. Participants may allocate their Retirement Distribution
Account and their In-Service Distribution Account among the Earnings Crediting Options available
under the Plan only in 10% increments. The deemed rate of return, positive or negative, credited
under each Earnings Crediting Option is based upon the actual investment performance of the Voting
Securities credited to the AMETEK Fund or the interest rate credited to the Interest Fund, as
applicable, unless other Investment Fund(s) are added. The Company reserves the right, on a
prospective basis, to add or delete Investment Funds.



     5.3 Earnings Crediting Options. Notwithstanding that the returns credited to
Participants’ Distribution Option Accounts under the Earnings Crediting Options are based upon the
actual performance of the corresponding deemed Investment Funds selected by a Participant, the
Company shall not be obligated to invest any Bonus Compensation Deferrals by Participants under
this Plan.



     5.4 Statement of Accounts. The Committee shall provide to each Participant, not less
frequently than annually, a statement in such form as the Committee deems desirable setting forth
the balance standing to the credit of each Participant in each of his Distribution Option Accounts.



     5.5 Distributions from Accounts. Any distribution made to or on behalf of a
Participant from one or more of the Participant’s Distribution Option Accounts in an amount which
is less than the entire balance of any such Account shall be made pro rata from each of the
Earnings Crediting Options to which such Account is then allocated except, and only to the extent,
that the Participant (or Beneficiary, if applicable) elects to receive a distribution in shares of
Voting Securities, up to the value of the amount to be distributed.



ARTICLE 6

DISTRIBUTION OPTIONS




     6.1 Election of Distribution Option. In the first completed and fully executed
Enrollment Agreement filed with the Committee, an Eligible Employee shall elect the time and manner
of payment for each of the Eligible Employee’s Distribution Option Accounts. Annually, the
Eligible Employee shall allocate his or her Bonus Compensation Deferrals between the Distribution
Options in increments of 25%; provided, however that 100% of such Deferrals may be allocated to one
or the other of the Distribution Options.



     6.2 Retirement Distribution Option. Subject to Section 7.1, distribution of the
Participant’s Retirement Distribution Account, if any, shall commence upon January 31st
of (a) the Plan Year following the Participant’s Retirement, (b) the second Plan Year following the
Participant’s Retirement or (c) the later of the Plan Year following the Participant’s Retirement
or the Plan Year





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following the year in which the Participant becomes age 65, as elected by the Participant in the
Enrollment Agreement pursuant to which such Retirement Distribution Account was established or
otherwise as permitted under Section 7.1(a).



     6.3 In-Service Distribution Option. Subject to Section 7.2, the Participant’s
In-Service Distribution Account shall be distributed commencing in the Plan Year elected by the
Participant in the Enrollment Agreement pursuant to which such In-Service Distribution Account was
established. Notwithstanding the foregoing, a Participant shall not be entitled to allocate any
Bonus Compensation Deferrals to an In-Service Distribution Account for the two Plan Years preceding
the Plan Year which includes the date on which the In-Service Distribution Account is to be
distributed.



ARTICLE 7

BENEFITS TO PARTICIPANTS




     7.1 Benefits Under the Retirement Distribution Option. Benefits under the Retirement
Distribution Option shall be paid to a Participant as follows:



          (a) Benefits Upon Retirement. In the case of a Participant whose Service with the
Company terminates on account of Retirement, the Participant’s Retirement Distribution Account
shall be distributed pursuant to one of the following methods, as elected by the Participant in
writing either in the Enrollment Agreement or in a separate election made as provided below: (i) in
a lump sum; or (ii) in up to 5 annual installments. Payments shall commence in accordance with the
Participant’s election pursuant to Section 6.2. Any lump-sum benefit payable in accordance with
this paragraph shall be paid in an amount equal to the value of such Retirement Distribution
Account as of the last business day of the Plan Year preceding the date of payment. If annual
installments are elected in accordance with this paragraph, the amount of the first annual
installment payment shall equal (i) the value of such Retirement Distribution Account as of the
last business day of the Plan Year preceding the date of payment, divided by (ii) the number of
annual installment payments elected by the Participant. The remaining annual installments shall be
paid not later than January 31 of each succeeding Plan Year in an amount equal to (i) the value of
such Retirement Distribution Account as of the last business day of the immediately preceding Plan
Year divided by (ii) the number of installments remaining. A Participant may change the election
regarding the manner of payment of the Participant’s Account, as described in Section 6.1, at any
time prior to the earlier of (i) the date of Retirement or (ii) June 30 of the Plan Year in which
occurs the Participant’s Retirement.




          (b) Benefits Upon Termination of Employment. In the case of a Participant whose
Service with the Company terminates prior to the earliest date on which the Participant is eligible
for Retirement, other than by reason of death, a Participant’s Retirement Distribution Account
shall be distributed in lump sum on (i) the January 31 following the Participant’s Termination Date
or (ii) such other date as is mutually agreed upon by the Company and the Participant.




     7.2 Benefits Under the In-Service Distribution Option. Benefits under the In-Service
Distribution Option shall be paid to a Participant as follows:



          (a) In-Service Distributions. In the case of a Participant who continues in Service
with the Company, the Participant’s In-Service Distribution Account shall be paid to the
Participant commencing on January 31 of the Plan Year irrevocably elected by the Participant in the
Enrollment Agreement pursuant to which such In-Service Distribution Account was established, which
may be no earlier than the third Plan Year following the end of the last Plan






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Year in which Bonus Compensation Deferrals are to be credited to that In-Service Distribution
Account, in one lump sum or in annual installments payable over 2, 3, or 4 years. Any lump-sum
benefit payable in accordance with this paragraph shall be paid on January 31 of the Plan Year
elected by the Participant in accordance with Section 6.3, in an amount equal to the value of such
In-Service Distribution Account as of the last business day of the Plan Year preceding the date of
payment. Annual installment payments, if any, shall commence not later than January 31 of the Plan
Year as elected by the Participant in accordance with Section 6.3, in an amount equal to (i) the
value of such In-Service Distribution Account as of the last business day of the Plan Year
preceding the date of payment, divided by (ii) the number of annual installment payments elected by
the Participant in the Enrollment Agreement pursuant to which such In-Service Distribution Account
was established. The remaining annual installments shall be paid not later than January 31 of each
succeeding Plan Year in an amount equal to (i) the value of such In-Service Distribution Account as
of the last business day of the immediately preceding Plan Year divided by (ii) the number of
installments remaining.




          (b) Benefits Upon Termination of Employment. In the case of a Participant whose
Service with the Company terminates prior to the date on which the Participant’s In-Service
Distribution Account would otherwise be distributed, other than by reason of death, such In-Service
Distribution Account shall be distributed in a lump sum (i) on January 31 following the
Participant’s Termination Date; or (ii) such other date as is mutually agreed upon by the Company
and the Participant.




ARTICLE 8

SURVIVOR BENEFITS




     8.1 Death of Participant Prior to the Commencement of Benefits. In the event of a
Participant’s death prior to the commencement of benefits in accordance with Article 7, benefits
shall be paid to the Participant’s Beneficiary, as determined under Section 12.3, pursuant to
Section 8.2 or 8.3, whichever is applicable, in lieu of any benefits otherwise payable under the
Plan to or on behalf of such Participant.



     8.2 Survivor Benefits Under the Retirement Distribution Option. In the case of a
Participant with respect to whom the Company has established a Retirement Distribution Account, and
who dies prior to the commencement of benefits under such Retirement Distribution Account pursuant
to Section 7.1, distribution of such Retirement Distribution Account shall be made in a lump sum
(a) as soon as practicable following the Participant’s death, or (b) such other date as is mutually
agreed upon by the Company and the Beneficiary. The amount of any lump sum benefit payable in
accordance with this Section shall equal the value of such Retirement Distribution Account as of
the last business day of the calendar month immediately preceding the date on which such benefit is
paid.



     8.3 Survivor Benefits Under the In-Service Distribution Option. In the case of a
Participant with respect to whom the Company has established an In-Service Distribution Account,
and who dies prior to the date on which such In-Service Distribution Account is to be paid pursuant
to Section 7.2, distribution of such In-Service Distribution Account shall be made in a lump sum
(a) as soon as practicable following the Participant’s death, or (b) such other date as is mutually
agreed upon by the Company and the Beneficiary. The amount of any lump sum benefit payable in
accordance with this Section shall equal the value of such In-Service Distribution Account as of
the last business day of the calendar month immediately preceding the date on which such benefit is
paid.





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     8.4 Death of Participant After Benefits Have Commenced. In the event a Participant
dies after annual installment benefits payable under Section 7.1 or 7.2 from the Participant’s
Accounts has commenced, but before the entire balance of any such Account has been paid, any
remaining installments shall be paid in lump sum (a) as soon as practicable following the
Participant’s death, or (b) such other date as is mutually agreed upon by the Company and the
Beneficiary.



ARTICLE 9

EMERGENCY BENEFIT




     In the event that the Committee, upon written request of a Participant, determines, in its
sole discretion, that the Participant has suffered an unforeseeable financial emergency, the
Company shall pay to the Participant from the Participant’s Distribution Option Account, as soon as
practicable following such determination, an amount necessary to meet the emergency, after
deduction of any and all taxes as may be required pursuant to Section 12.9 (the “Emergency
Benefit”). For purposes of this Plan, an unforeseeable financial emergency is an unexpected need
for cash arising from an illness, casualty loss, sudden financial reversal, or other such
unforeseeable occurrence. Cash needs arising from foreseeable events such as the purchase of a
house or education expenses for children shall not be considered to be the result of an
unforeseeable financial emergency. Emergency Benefits shall be paid first from the Participant’s
In-Service Distribution Account, if any, to the extent the balance of such In-Service Distribution
Account is sufficient to meet the emergency. If the distribution exhausts the In-Service
Distribution Account, the Retirement Distribution Account may be accessed. With respect to that
portion of any Distribution Option Account which is distributed to a Participant as an Emergency
Benefit, in accordance with this Article, no further benefit shall be payable to the Participant
under this Plan. Notwithstanding anything in this Plan to the contrary, a Participant who receives
an Emergency Benefit in any Plan Year shall not be entitled to make any further deferrals for the
remainder of such Plan Year. It is intended that the Committee’s determination as to whether a
Participant has suffered an “unforeseeable financial emergency” shall be made consistent with the
requirements under section 457(d) of the Code.



ARTICLE 10

ACCELERATED DISTRIBUTION




     10.1 Availability of Withdrawal Prior to Retirement. Upon the Participant’s written
election, the Participant may elect to withdraw all or a portion of the Participant’s Distribution
Option Account at any time prior to the time such Distribution Option Account otherwise becomes
payable under the Plan, provided the conditions specified in Section 10.3, Section 10.4, and
Section 10.5 are satisfied.



     10.2 Acceleration of Periodic Distributions. Upon the Participant’s written
election, the Participant or Participant’s Beneficiary who is receiving installment payments under
the Plan may elect to have all or a percentage of the remaining installments distributed in the
form of an immediately payable lump sum, provided the condition specified in Section 10.3 is
satisfied.



     10.3 Forfeiture Penalty. In the event of a withdrawal pursuant to Section 10.1, or
an accelerated distribution pursuant to Section 10.2, the Participant shall forfeit from his
Distribution Option Account from which the withdrawal is made an amount equal to 10% of the amount
of the withdrawal or accelerated distribution, as the case may be. The forfeited amount shall be
deducted from the applicable Distribution Option Account prior to giving effect to the requested
withdrawal or acceleration. The Participant and the Participant’s Beneficiary shall not have any





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right or claim to the forfeited amount, and the Company shall have no obligation whatsoever to the
Participant, the Participant’s Beneficiary or any other person with regard to the forfeited amount.



     10.4 Minimum Withdrawal. In no event shall the amount withdrawn in accordance with
Section 10.1 be less than 25% of the amount credited to the Participant’s Distribution Option
Account immediately prior to the withdrawal.



     10.5 Suspension from Deferrals. In the event of a withdrawal pursuant to Section
10.1, a Participant who is otherwise eligible to make deferrals under Article 4 shall be prohibited
from making any deferrals with respect to the Plan Year immediately following the Plan Year during
which the withdrawal was made, and any election previously made by the Participant with respect to
deferrals for the Plan Year of the withdrawal shall be void and of no effect with respect to
subsequent deferrals for such Plan Year.



ARTICLE 11

CHANGE OF CONTROL




     In the case of a Change of Control, a Participant may make a one-time irrevocable election,
within 60 days after the closing of the transaction pursuant to which the Change of Control was
occasioned, to receive the full amount credited to the Participant’s Retirement Distribution
Account and In-Service Distribution Account in a lump sum. Any lump-sum benefit payable in
accordance with this paragraph shall be paid in, but not later than January 31 of, the Plan Year
following the Plan Year in which such closing occurs, in an amount equal to the value of such
Retirement Distribution Account and In-Service Distribution Account as of the last business day of
the Plan Year preceding the date of payment.



ARTICLE 12

MISCELLANEOUS




     12.1 Amendment and Termination. The Plan may be amended, suspended, discontinued or
terminated at any time by the Board; provided, however, that no such amendment, suspension,
discontinuance or termination shall reduce or in any manner adversely affect the rights of any
Participant with respect to benefits that are payable or may become payable under the Plan based
upon the balance of the Participant’s Retirement Account and In-Service Distribution Account as of
the effective date of such amendment, suspension, discontinuance or termination.



     12.2 Claims Procedure.



          a. Claim




          A person who believes that he is being denied a benefit to which he is entitled under the Plan
(hereinafter referred to as a “Claimant”) may file a written request for such benefit with the
Committee, setting forth the claim.




          b. Claim Decision




          Upon receipt of a claim, the Committee shall advise the Claimant that a reply will be
forthcoming within ninety (90) days and shall, in fact, deliver such reply within such period.






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The Committee may, however, extend the reply period for an additional ninety (90) days for
reasonable cause.




          If the claim is denied in whole or in part, the Claimant shall be provided a written opinion,
using language calculated to be understood by the Claimant, setting forth:




          (a) The specific reason or reasons for such denial;




          (b) The specific reference to pertinent provisions of this Agreement on which such denial is
based;




          (c) A description of any additional material or information necessary for the Claimant to
perfect his claim and an explanation why such material or such information is necessary;




          (d) Appropriate information as to the steps to be taken if the Claimant wishes to submit the
claim for review; and




          (e) The time limits for requesting a review under subsection (c) and for review under
subsection (d) hereof.




          c. Request for Review




          Within sixty (60) days after the receipt by the Claimant of the written opinion described
above, the Claimant may request in writing that the Committee review the determination. The
Claimant or his duly authorized representative may, but need not, review the pertinent documents
and submit issues and comment in writing for consideration by the Committee. If the Claimant does
not request a review of the initial determination within such sixty (60) day period, the Claimant
shall be barred and estopped from challenging the determination.




          d. Review of Decision




          Within sixty (60) days after the Committee’s receipt of a request for review, it will review
the initial determination. After considering all materials presented by the Claimant, the
Committee will render a written opinion, written in a manner calculated to be understood by the
Claimant, setting forth the specific reasons for the decision and containing specific references to
the pertinent provisions of this Agreement on which the decision is based. If special
circumstances require that the sixty (60) day time period be extended, the Committee will so notify
the Claimant and will render the decision as soon as possible, but no later than one hundred twenty
(120) days after receipt of the request for review.




     12.3 Designation of Beneficiary. Each Participant may designate a Beneficiary or
Beneficiaries (which Beneficiary may be an entity other than a natural person) to receive any
payments which may be made following the Participant’s death. Such designation may be changed or
canceled at any time without the consent of any such Beneficiary. Any such designation, change or
cancellation must be made in a form approved by the Committee and shall not be effective until
received by the Committee, or its designee. If no Beneficiary has been named, or the designated
Beneficiary or Beneficiaries shall have predeceased the Participant, the Beneficiary shall be the
Participant’ s estate. If a Participant designates more than one Beneficiary, the interests of
such Beneficiaries shall be paid in equal shares, unless the Participant has specifically
designated otherwise.





AMETEK, Inc., Deferred Compensation Plan


Appendix A Page A-11









 





     12.4 Limitation of Participant’s Right. Nothing in this Plan shall be construed as
conferring upon any Participant any right to continue in the employment of the Company, nor shall
it interfere with the rights of the Company to terminate the employment of any Participant and/or
to take any personnel action affecting any Participant without regard to the effect which such
action may have upon such Participant as a recipient or prospective recipient of benefits under the
Plan. Any amounts payable hereunder shall not be deemed salary or other compensation to a
Participant for the purposes of computing benefits to which the Participant may be entitled under
any other arrangement established by the Company for the benefit of its employees.



     12.5 No Limitation on Company Actions. Nothing contained in the Plan shall be
construed to prevent the Company from taking any action which is deemed by it to be appropriate or
in its best interest. No Participant, Beneficiary, or other person shall have any claim against
the Company as a result of such action.



     12.6 Obligations to Company. If a Participant becomes entitled to a distribution of
benefits under the Plan, and if at such time the Participant has outstanding any debt, obligation,
or other liability representing an amount owing to the Company under a legally binding written
instrument, then the Company may offset such amount owed to it against the amount of benefits
otherwise distributable. Such determination shall be made by the Committee.



     12.7 Nonalienation of Benefits. Except as expressly provided herein, no Participant
or Beneficiary shall have the power or right to transfer (otherwise than by will or the laws of
descent and distribution), alienate, or otherwise encumber the Participant’s interest under the
Plan. The Company’s obligations under this Plan are not assignable or transferable except to (a)
any corporation or partnership which acquires all or substantially all of the Company’s assets or
(b) any corporation or partnership into which the Company may be merged or consolidated. The
provisions of the Plan shall inure to the benefit of each Participant and the Participant’s
Beneficiaries, heirs, executors, administrators or successors in interest.



     12.8 Withholding Taxes. The Company may make such provisions and take such action as
it may deem necessary or appropriate for the withholding of any taxes which the Company is required
by any law or regulation of any governmental authority, whether Federal, state or local, to
withhold in connection with any benefits under the Plan, including, but not limited to, the
withholding of appropriate sums from any amount otherwise payable to the Participant (or his
Beneficiary). Each Participant, however, shall be responsible for the payment of all individual
tax liabilities relating to any such benefits.



     12.9 Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan
of deferred compensation for Participants. Benefits payable hereunder shall be payable out of the
general assets of the Company, and no segregation of any assets whatsoever for such benefits shall
be made. Notwithstanding any segregation of assets or transfer to a grantor trust, with respect to
any payments not yet made to a Participant, nothing contained herein shall give any such
Participant any rights to assets that are greater than those of a general creditor of the Company.



     12.10 Severability. If any provision of this Plan is held unenforceable, the
remainder of the Plan shall continue in full force and effect without regard to such unenforceable
provision and shall be applied as though the unenforceable provision were not contained in the
Plan.



     12.11 Governing Law. The Plan shall be construed in accordance with and governed by
the laws of the Commonwealth of Pennsylvania, without reference to the principles of conflict of
laws.





AMETEK, Inc., Deferred Compensation Plan


Appendix A Page A-12









 





     12.12 Headings. Headings are inserted in this Plan for convenience of reference only
and are to be ignored in the construction of the provisions of the Plan.



     12.13 Gender, Singular and Plural. All pronouns and any variations thereof shall be
deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may
require. As the context may require, the singular may read as the plural and the plural as the
singular.



     12.14 Notice. Any notice or filing required or permitted to be given to the Committee
under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or
certified mail, to the Human Resources Department, or to such other entity as the Committee may
designate from time to time. Such notice shall be deemed given as to the date of delivery, or, if
delivery is made by mail, as of the date shown on the postmark on the receipt for registration or
certification.






AMETEK, Inc., Deferred Compensation Plan


Appendix A Page A-13