EX-10.2









Exhibit
10.2 



 




    DOVER
    CORPORATION

    EXECUTIVE OFFICER ANNUAL INCENTIVE PLAN

    (Amended and Restated as of January 1, 2009)



 



    1. Purpose. The purposes of the Dover Corporation
    Executive Officer Annual Incentive Plan (the
    “Plan”) are to provide annual incentive
    compensation to designated executive officers of Dover
    Corporation (the “Company”) based on the
    achievement of established performance targets, to encourage
    such executive officers to remain in the employ of the Company,
    to assist the Company in attracting and motivating new executive
    officers and to qualify the incentive payments awarded under the
    Plan (the “Awards”) as qualified
    “performance-based compensation” so that payments
    under the Plan shall be deductible in accordance with
    Section 162(m) of the Internal Revenue Code of 1986, as
    amended (the “Code”).



 



    2. Eligibility. The Compensation Committee of the
    Board of Directors of the Company (the
    “Committee”) shall each year determine the
    Executive Officers of the Company eligible to participate in the
    Plan (the “Participants”). For purposes hereof,
    “Executive Officers” shall mean the Chief
    Executive Officer and the Chief Operating Officer of the
    Company, each executive of the Company or an Affiliate who
    reports directly to the Chief Executive Officer or the Chief
    Operating Officer of the Company, and any other executive of the
    Company or an Affiliate as may be selected by the Committee or
    who is an “executive officer” of the Company within
    the meaning of
    Rule 3b-7
    under the Securities Exchange Act of 1934. As used herein,
    “Affiliate” shall mean each corporation that is
    a member of the Company’s affiliated group, within the
    meaning of Section 1504 of the Code (without regard to
    Section 1504(b) of the Code) other than any subsidiary of
    the Company that is itself a publicly held corporation as such
    term is defined in Section 162(m) of the Code and the
    Treasury regulations issued thereunder and any subsidiaries of
    such publicly held corporation subsidiary.



 



    3. Performance Periods. Each performance period for
    purposes of the Plan shall have a duration of one calendar year,
    commencing January 1 and ending the next December 31
    (“Performance Period”).



 



    4. Administration. The Committee shall have the full
    power and authority to administer and interpret the Plan and to
    establish rules for its administration including, without
    limitation, correcting any defect, supplying any omission or
    reconciling any inconsistency in this Plan in the manner and to
    the extent it shall deem necessary to carry this Plan into
    effect. Unless otherwise specified by the Committee at the time
    of grant, all Awards are intended to qualify as
    performance-based compensation within the meaning of
    Section 162(m) of the Code (“Qualified Performance
    Awards”). The Committee retains the discretion to grant
    Awards that are not intended to qualify as Qualified Performance
    Awards, to determine the terms and conditions of such Awards and
    adjust or prorate such Awards. All decisions of the Committee on
    any question concerning the selection of Participants and the
    interpretation and administration of the Plan shall be final,
    conclusive, and binding upon all parties.



 



    5. Performance Targets. On or before the
    90th day of each Performance Period (provided that the
    outcome is substantially uncertain at the time the Committee
    establishes the targets), the Committee shall establish in
    writing one or more performance targets (“Performance
    Targets”) for the Performance Period. The Performance
    Targets shall in all instances be determined on the basis of the
    one or more of the following performance criteria as they apply
    to the Company as a whole or to a subsidiary, a division, or
    business unit: (a) earnings before interest, taxes,
    depreciation and amortization, (b) cash flow,
    (c) earnings per share, (d) operating earnings,
    (e) return on equity, (f) return on investment,
    (g) total shareholder return or internal total shareholder
    return, (h) net earnings, (i) sales or revenue,
    (j) expense targets, (k) targets with respect to the
    value of common




    









 






    stock, (l) margins, (m) pre-tax or after-tax net
    income, (n) market penetration, (o) geographic goals,
    (p) business expansion goals, or (q) goals based on
    operational efficiency.



 



    6. Incentive Payout Calculation. As soon as
    practicable after the end of each Performance Period, the
    Committee shall make a determination in writing with regard to
    the attainment of the Company’s Performance Targets
    specified pursuant to Section 5 for such Performance Period
    and shall calculate the possible payout of incentive awards for
    each Participant.



 



    7. Reduction Of Calculated Payouts. The Committee
    shall have the power and authority to reduce or eliminate for
    any reason the payout calculated pursuant to Section 6 that
    would otherwise be payable to a Participant based on the
    established target Award and payout schedule, provided,
    however, that the exercise of discretion to reduce or
    eliminate the payout to one Participant may not result in an
    increase in the amount payable to another Participant.



 



    8. Payouts. Qualified Performance Awards shall not
    be paid before the Committee certifies in writing that the
    Performance Targets specified pursuant to Section 5 have
    been satisfied. No portion of a Qualified Performance Award may
    be paid if the Performance Targets have not been satisfied.
    Notwithstanding the forgoing, the Committee may, in its sole and
    absolute discretion, permit the payment of Qualified Performance
    Awards with respect to a Performance Period in the case of death
    or disability of the Participant or a change in ownership or
    control of the Company (within the meaning of Section 280G
    of the Code) during such Performance Period without regard to
    actual achievement of the Performance Targets and whether or not
    payment of such Awards would be deductible under
    Section 162(m) of the Code but only if such payment would
    not cause Awards made under the Plan to fail to be qualified
    performance-based compensation under Section 162(m) of the
    Code and Treasury regulations issued thereunder. The Committee
    may, in its sole and absolute discretion, permit the payment of
    Awards which are not Qualified Performance Awards without regard
    to actual achievement of the Performance Targets. In no event
    shall the payout under the Plan to any Participant for any
    Performance Period exceed $5 million. Payment of the Award
    determined in accordance with the Plan for each Performance
    Period shall be made to a Participant in cash within two and
    one-half
    (21/2)
    months following the Performance Period.



 



    9. Miscellaneous Provisions.



 



    (a) The Board of Directors of the Company shall have the
    right to suspend or terminate the Plan at any time and may amend
    or modify the Plan with respect to future Performance Periods
    prior to the beginning of any Performance Period,
    provided that no such amendment or modification which is
    expected to materially increase benefits payable to Participants
    under the Plan who are “covered employees” within the
    meaning of Section 162(m) of the Code (“Covered
    Employees”) shall be made unless such measures as the
    Committee deems necessary for the increased benefit to be
    deductible as qualified performance-based compensation pursuant
    to Section 162(m) of the Code have been taken.



 



    (b) Nothing contained in the Plan or any agreement related
    hereto shall affect or be construed as affecting the terms of
    the employment of any Participant except as specifically
    provided herein or therein. Nothing contained in the Plan or any
    agreement related hereto shall impose or be construed as
    imposing any obligation on (i) the Company or any Affiliate
    to continue the employment of any Participant or (ii) any
    Participant to remain in the employ of the Company or any
    Affiliate. The Company reserves the right to make bonus or other
    incentive awards to Participants under other plans maintained by
    the Company or otherwise as determined by the Company in its
    sole discretion, which other plans or arrangements need not be
    intended to meet the requirements of Section 162(m) of the
    Code.



 



    (c) No person shall have any claim to be granted an Award
    under the Plan and there is no obligation of uniformity of
    treatment of eligible employees under the Plan. Awards under the
    Plan may not be assigned or alienated.




    









 






    (d) The Company or Affiliate, as applicable, shall have the
    right to deduct from any Award to be paid under the Plan any
    federal, state or local taxes required by law to be withheld
    with respect to such payment.



 



    (e) If any provision of the Plan or an Award would cause
    the Awards granted to a Covered Employee not to be qualified
    “performance-based compensation” under
    Section 162(m) of the Code, that provision, insofar as it
    pertains to such Covered Employee, shall be severed from, and
    shall be deemed not to be a part of, the Plan or an Award, but
    the other provisions hereof shall remain in full force and
    effect.



 



    (f) It is intended that the Awards granted under the Plan
    shall be exempt from, or in compliance with, Section 409A
    of the Code. In the event any of the Awards issued under the
    Plan are subject to Section 409A of the Code, it is
    intended that no payment or entitlement pursuant to this Plan
    will give rise to any adverse tax consequences to a Participant
    under Section 409A of the Code. The Plan shall be
    interpreted to that end and, consistent with that objective and
    notwithstanding any provision herein to the contrary, the
    Company may unilaterally take any action it deems necessary or
    desirable to amend any provision herein to avoid the application
    of, or excise tax under, Section 409A of the Code provided
    that such action is consistent with the requirements of
    Section 162(m) of the Code. Neither the Company nor its
    current or former employees, officers, directors,
    representatives or agents shall have any liability to any
    current or former Participant with respect to any accelerated
    taxation, additional taxes, penalties, or interest for which any
    current or former Participant may become liable in the event
    that any amounts payable under the Plan are determined to
    violate Section 409A.



 



    (g) Notwithstanding anything herein to the contrary, to the
    extent required by Section 409A of the Code and Treasury
    regulations, upon a termination of employment (other than as a
    result of death) of a person determined by the Board of
    Directors of the Company (or a committee of the Board of
    Directors as such body shall delegate) to be a “specified
    employee” (within the meaning of Section 409A of the
    Code), distributions determined, in whole or in part, to
    constitute “nonqualified deferred compensation” within
    the meaning of Section 409A of the Code shall be delayed
    until six months after such termination of employment if such
    termination constitutes a “separation from service”
    (within the meaning of Section 409A(a)(2)(A)(i) of the Code
    and the Treasury regulations issued thereunder) and such
    distribution shall be made at the beginning of the seventh month
    following the date of the specified employee’s termination
    of employment.



 



    10. Adoption. The Plan initially became effective as
    of January 1, 1998 subject to approval by the shareholders
    of the Company which was obtained on April 28, 1998. The
    Plan was subsequently re-approved by the Company shareholders on
    April 2, 2003 and May 1, 2008, and was amended and
    restated in its entirety effective January 1, 2009 to
    comply with the provisions of Sections 409A and 162(m) of
    the Code and applicable guidance issued by the Treasury
    Department and the Internal Revenue Service. For the period from
    January 1, 2005 to December 31, 2008, the Plan was
    administered in good faith compliance with Section 409A of
    the Code and applicable guidance issued by the Treasury
    Department and the Internal Revenue Service. The Plan is hereby
    further amended and restated in its entirety effective
    January 1, 2009, subject to approval by the shareholders at
    the May 7, 2009 shareholders meeting.