Form of Tier 1 Change in Control Agreement



 Exhibit 10.32 
 AGREEMENT 
 This AGREEMENT is made as of
                    , 200__, by and among INGERSOLL-RAND COMPANY, a New Jersey corporation (the “Company”), INGERSOLL-RAND PLC, an
Irish company (“IR plc”) and                      (the “Employee”). Unless otherwise indicated, terms used herein and
defined in Schedule A hereto shall have the meanings assigned to them in said Schedule. 
 1. TERM/OPERATION OF AGREEMENT. 

This Agreement shall begin and be effective on the date first set forth above and its initial term shall last until December 1, 200__. This
Agreement shall continue thereafter from year to year prior to a Change in Control Event unless terminated as of December 1, 200     or any subsequent anniversary thereof by either party upon written notice to the
other party given at least 60 days prior to such renewal date. Notwithstanding the foregoing, this Agreement may not be terminated on or after the occurrence of a Change in Control Event and its terms shall continue until the later of: the second
anniversary of the occurrence of a Change in Control Event; or after satisfaction of all obligations hereunder. Additionally, the Employee’s rights under this Agreement shall terminate in the event that the Employee’s employment with the
IR Group terminates for reasons other than due to a “Termination” as defined in Schedule A annexed hereto. 
 2. EMPLOYEE’S
POSITION AND RESPONSIBILITY. 
 The Employee will continue to serve the IR Group upon the occurrence of a Change in Control Event in
accordance with the terms of this Agreement unless his employment terminates under the terms hereof prior to the expiration of the Agreement. 
 3. COMPENSATION AND OTHER BENEFITS UPON CHANGE IN CONTROL EVENT. 
 Upon the occurrence of any Change in Control Event, the
Employee shall continue to receive basic annual salary, bonus and fringe and other benefits as follows: 
 (a) Basic Annual
Salary and Bonus. The Employee’s basic annual salary shall continue at a rate not less than the rate of annual salary, which has been paid to the Employee immediately prior to the Change in Control Event, with such annual increases (but not
decreases) equal to the greater of (i) salary increases as may be contemplated by any applicable salary adjustment programs of the IR Group (or any member thereof) in effect immediately prior to the Change in Control Event and applicable to the
Employee and such further increases as shall be determined from time to time by the Board or (ii) a percentage equal to the percentage increase (if any) in the “Consumer Price Index for All Urban Consumers” published by the United
States Department of Labor’s Bureau of Labor Statistics for the then most recently ended 12-month period. In addition, the Employee shall be entitled to receive an annual bonus in an amount not less than the highest annual bonus received by, or
accrued on behalf of, the Employee during the period of (i) the three full Fiscal Years immediately preceding the Change in Control Event, or, if a lesser period, (ii) the number of full Fiscal Years immediately preceding the Change in
Control Event during which the Employee has been employed by the IR Group (or any member thereof) (whether the bonus is paid to, is accrued on behalf of, or 








 
is a Deferral Amount (as such term is defined, respectively, in the IR Executive Deferred Compensation Plan and the IR Executive Deferred Compensation Plan
II (collectively, the “Executive Deferred Plans”)). 
 (b) Compensation and Benefits; Business Expenses. The
Employee shall continue to be entitled to receive benefits, including but not limited to pension (and supplemental pension), savings plan (and supplemental savings plan), leveraged employee stock ownership plan, stock award, performance share, stock
option, deferred compensation, and welfare plans (as defined in section 3(1) of the Employee Retirement Income Security Act of 1974, as amended, or otherwise) including, but not limited to, life, medical, prescription drugs, dental, disability,
accidental death and travel accident coverage plans and post-retirement welfare benefits on terms no less favorable than those in effect under each such plan or program immediately prior to the Change in Control Event, and at no less than the same
benefit levels (and no more than the same employee contribution levels) then in effect under each such plan or program of the IR Group (or any member thereof) as it exists immediately prior to the Change in Control Event, and to receive all other
compensation, benefits and perquisites (or their equivalent) from time to time in effect for the benefit of any executive, management or administrative group for which the employment position then held by the Employee entitles the Employee to
participate. The Company shall provide for the payment of, or reimburse the Employee for, all travel and other out-of-pocket expenses reasonably incurred by him in the performance of his or her duties hereunder. 
 4. PAYMENTS AND BENEFITS UPON TERMINATION. 
 Subject to paragraph 8(k), the Employee shall be entitled to the following payments and benefits upon Termination: 
 (a) Salary and Bonus. The Company shall pay to the Employee, in a cash lump sum on the Termination Date, an amount equal to the sum of (i) the basic annual salary, and any annual bonus in respect of a completed fiscal year,
which have not yet been paid to the Employee through the Termination Date; (ii) an amount equal to the last annual bonus received by, or awarded to, the Employee with respect to the full Fiscal Year immediately preceding the Termination Date
multiplied by a fraction the numerator of which shall be the number of full months the Employee was employed by the Company during the Fiscal Year containing the Employee’s Termination Date and the denominator of which shall be 12; and
(iii) an amount equal to the Employee’s basic annual salary multiplied by a fraction, the numerator of which shall be the number of unused vacation days to which the Employee is entitled as of the Termination Date and the denominator of
which shall be 365, and any other amounts normally paid to an employee by the IR Group (or any member thereof) upon termination of employment. For the purpose of 4(a)(ii), any partial month during which the Employee is employed shall be deemed a
full month. 
 (b) Severance. The Company shall pay to the Employee, in a cash lump sum not more than 30 days following
the Termination Date, an amount equal to three times the sum of (i) the basic annual salary in effect on the Termination Date, or, if higher, the basic annual salary in effect immediately prior to reduction of the Employee’s basic annual
salary after the Change in Control Event; and (ii) the Employee’s target bonus for the year of termination or, if higher, the average of the annual bonus received by, or 

  

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accrued on behalf of, the Employee during the period beginning three full Fiscal Years immediately preceding the Change in Control Event and ending on the
Termination Date (whether the bonus is paid to, is accrued on behalf of, or is a Deferral Amount (as such term is defined in the Executive Deferred Plans)). 
 (c) Employee Benefit Plans. For the three year period following the Termination Date, the IR Group (or any member thereof) shall
continue to cover the Employee under those employee welfare plans (including, but not limited to, life, medical, prescription drugs, dental, accidental death and travel accident coverage, but not including any severance pay or disability plan, other
than that provided pursuant to this Agreement or any pension plan) applicable to the Employee on the Termination Date at the same benefit levels then in effect (or shall provide their equivalent); provided, however, that if the
Employee becomes employed by a new employer and participates in a welfare plan of such employer that is at least as favorable as the comparable plan of the IR Group (or any member thereof), the Employee’s coverage hereunder under the applicable
welfare plan of the IR Group (or any member thereof) (or the equivalent) shall continue only as secondary coverage to that provided by the new employer until the three year period following the Termination Date (but shall become primary coverage on
or prior to the expiration of the three year period following the Termination Date if, for any reason, the Employee ceases to participate in the new employer’s plan or if such new employer’s plan becomes less favorable than the comparable
plan of the IR Group (or any member thereof)). 
 (d) Executive Deferred Compensation Plans and Supplemental Employee
Savings Plans. The amount and payment of benefits under the Executive Deferred Plans and the Ingersoll-Rand Company Supplemental Employee Savings Plan (“ESP”) shall be determined in accordance with the provisions set forth in the
applicable plan document. 
 (e) Pension Benefits. 
 (i) No later than 30 days following the Termination Date, the Company shall pay the Employee an amount (in one lump sum cash payment and
in lieu of the benefit otherwise provided under the applicable plan, program or agreement) equal to the present value of the sum of the pension benefits the Employee is entitled to receive under (A) the Ingersoll-Rand Company Supplemental
Pension Plan (the “Section 415 Excess Plan”) and (B) the Ingersoll-Rand Company Elected Officers Supplemental Program (the “Elected Officers Supplemental Program” or the “Program”), each as in effect immediately
prior to the Change in Control Event (collectively, the Section 415 Excess Plan and the Program shall be referred to as the “Pension Benefit”). 
 (ii) In calculating the portion of the Pension Benefit under the Elected Officers Supplemental Program for the purpose of determining the
amount payable under this Agreement, the Company shall: (A) credit the Employee with an additional three Years of Service (as defined in the Program) (but in no event shall the Employee be credited with more than 35 Years of Service) and an
additional three years of age but to an age no greater than 65 for purposes of computing the amount of the Pension Benefit; and (B) define “Final Average Pay” in Section 1.10 of the Program as 1/3 of the severance amount
determined pursuant to paragraph 4(b) of this Agreement. If, after crediting three years of age, the Employee is less than 55 years old, the portion of his or her Pension Benefit under the Program shall be reduced to reflect commencement prior to
age 55 in accordance with the applicable provisions of the Program. 
  

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 (iii) This paragraph 4(e)(iii) shall apply only in the event that the portion of the
Pension Benefit under the Elected Officers Supplemental Program, after application of paragraph 4(e)(ii), is less than zero ($0.00). In calculating the portion of the Pension Benefit under Section 1.1 of the Section 415 Excess Plan for the
purpose of determining the amount payable under this Agreement, the Company shall credit the Employee with three additional years of credited service (within the meaning of the Company’s qualified defined benefit plan in which the Employee
actively participates immediately prior to the Change in Control Event (the “Qualified Pension Plan”), and including compensation, vesting and age credit) and three additional years of age (provided that age shall not be increased to more
than 65) for purposes of the Section 415 Excess Plan but not the Qualified Pension Plan. 
 (iv) Reserved. 
 (v) The present value of the Pension Benefit under the Elected Officers Supplemental Program and, only in the event that paragraph
4(e)(iii) applies, the Section 415 Excess Plan, shall be calculated using (A) an interest rate equal to the 10-year Treasury Note rate as used in the Elected Officers Supplemental Program’s definition of Actuarial Equivalent,
(B) the mortality rate used to determine lump sum values in the Elected Officers Supplemental Program, and (C) actual age without the three year addition to age. 
 (vi) In the event that the Change in Control Event preceding the Termination Date does not constitute a change in ownership or effective
control, or in the ownership of a substantial portion of the assets, within the meaning of Section 409A(a)(2)(A)(v) of the Code, then the Pension Benefits paid pursuant to this Section 4(e) shall be deferred until such times(s) as payment
of such amounts would have been made without regard to the occurrence of such Change in Control Event. 
 (f) Retiree
Welfare Benefits. For purposes of determining the Employee’s eligibility for post-retirement benefits under any welfare plan maintained by the IR Group (or any member thereof) prior to the occurrence of a Change in Control Event, the
Employee shall be credited with any combination of additional years of service and age which together shall not exceed 10 years, for the purpose of determining eligibility for such benefits. If, after taking into account such additional age and
service, the Employee is eligible for any such post-retirement welfare benefits (or would have been eligible under the terms of such plans as in effect prior to the occurrence of the Change in Control Event), the Employee shall receive, commencing
on the month following the date that is three years after the Termination Date, post-retirement welfare benefits no less favorable than the benefits the Employee would have received under the terms and conditions of the applicable plans in effect
immediately prior to the occurrence of the Change in Control Event. For the purpose of determining years of service under this paragraph, years of service shall be determined in accordance with the definition of “Year of Vesting Service”
as set forth under Section 1.42 of the Ingersoll-Rand Pension Plan One (as in effect immediately prior to the Change in Control Event) in addition to the additional years provided herein. 
  

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 (g) Reserved. 
 (h) Reserved. 
 (i) Outplacement Expenses. For the period following the Termination Date until December 31 of the second calendar year following the calendar year during which the Termination Date occurred, the Company shall reimburse the
Employee for all reasonable expenses (up to 45% of the Employee’s basic annual salary, but no more than $100,000, during such period) actually incurred by the Employee for professional outplacement services by qualified consultants selected by
the Employee. The outplacement expenses incurred by the Employee during such period shall be reimbursed by the Company no later than the last day of the third calendar year following the calendar year during which the Termination Date occurs.

 5. RESERVED. 
 6.
EFFECT ON OTHER EMPLOYMENT ARRANGEMENTS. 
 Except for any interests or rights relating to benefit provisions (but not severance
payments) such as pension, stock option grants, stock awards, health and welfare (including retiree medical) and perquisites that the Employee may have under any other written employment agreement or arrangement with the Company, or any member of
the IR Group, the provisions of this Agreement contain the entire understanding of the parties hereto and, in the event of a Termination, shall supersede and govern in all respects any prior employment or severance agreement or understanding between
the Company, or any member of the IR Group and the Employee. For the avoidance of doubt, any pension arrangement that the Employee may have under any employment agreement or arrangement with the Company are in addition to the provisions of paragraph
4(e) hereof. 
 7. CONFIDENTIALITY; COVENANT NOT TO COMPETE. 
 (a) The Employee shall not, without the Company’s prior written consent, either directly or indirectly, (i) at any time during
the Employee’s employment with the Company or any member of the IR Group and for three years after the Employee’s Termination, disclose any Confidential Information pertaining to the business of the Company or the IR Group, except when
required to perform his or her duties to the Company or any member of the IR Group, by law or judicial process; or (ii) for the one year period after the Employee’s Termination (the “Restricted Period”) (A) be engaged in or
have a financial interest (other than an ownership position of less than 5% in any company whose shares are publicly traded or any non-voting non-convertible debt securities in any company) in any business which competes with any business of the
Company or any member of the IR Group, (B) solicit customers or clients of the Company or any member of the IR Group to terminate their relationship with the Company or any member of the IR Group or otherwise solicit such customers or clients
to compete with any business of the Company or any member of IR Group or (C) solicit or offer employment to, or otherwise hire, any person who has been employed by the Company or any member of the IR Group at any time during the twelve months
immediately preceding the termination of the Employee’s employment. If the Employee is bound by any other agreement with the Company or any member of the IR Group 

  

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regarding the use or disclosure of confidential information, the provisions of this paragraph 7 shall be read in such a way as to further restrict and not to
permit any more extensive use or disclosure of confidential information. 
 (b) Notwithstanding clause (a) above, if at
any time a court holds that the restrictions stated in such clause (a) are unreasonable or otherwise unenforceable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographic area determined to be
reasonable under such circumstances by such court will be substituted for the stated period, scope or area. 
 (c) For
purposes of this Agreement, “Confidential Information” shall mean all non-public information concerning trade secret, know-how, software, developments, inventions, processes, technology, designs, the financial data, strategic business
plans or any proprietary or confidential information, documents or materials in any form or media, including any of the foregoing relating to research, operations, finances, current and proposed products and services, vendors, customers, advertising
and marketing, and other non-public, proprietary, and confidential information of the Company or any member of the IR Group. 
 8.
MISCELLANEOUS. 
 (a) Legal Expenses; Severability. The Company shall pay all costs and expenses, including
attorneys’ fees, of the Company and, at least quarterly, the Employee, in connection with any legal proceedings, whether or not instituted by the IR Group (or any member thereof), relating to the interpretation or enforcement of this Agreement.
In the event that the provisions of this paragraph shall be determined to be invalid or unenforceable in any respect, such declaration shall not affect the remaining provisions of this Agreement, which shall continue in full force and effect.

 (b) Mitigation. All payments or benefits required by the terms of this Agreement shall be made or provided without
offset, deduction, or mitigation on account of income the Employee may receive from other employment or otherwise and the Employee shall not have any obligation or duty to seek any other employment or otherwise earn any amounts to reduce or mitigate
any payments required hereunder. 
 (c) Death of the Employee. In the event of the Employee’s death subsequent to
Termination, all payments called for hereunder shall be paid to the Employee’s designated beneficiary or beneficiaries, or to his or her estate if he or she has not designated a beneficiary or beneficiaries. 
 (d) Notices. Any notice or other communication provided for in this Agreement or contemplated hereby shall be sufficiently given if
given in writing and delivered by hand, by overnight courier (with receipt) or by certified mail, return receipt requested, and addressed, in the case of the Company, to the Company at: 
 One Centennial Avenue 
 Piscataway, New
Jersey 08854 
 Attention: President 
 or such other address if the executive offices of the Company have moved; 
  

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 with a copy to IR plc at: 
 c/o Ingersoll-Rand Company 
 One Centennial Avenue 
 Piscataway, New Jersey 08854 
 Attention:
Chairman of the Board of Directors 
 or such other address if the executive offices of the Company have moved; 
 and, in the case of the Employee, to the Employee at: 
 ______________ 
 ______________ 
 Either party may designate a different address by giving notice of change in address in the manner provided above. 
 (e) Waiver. No waiver or modification in whole or in part of this Agreement, or any term or condition hereof, shall be effective against any party unless in writing and duly signed by the party sought to be bound. Any waiver of any
breach of any provision hereof or any right or power by any party on one occasion shall not be construed as a waiver of, or a bar to, the exercise of such right or power on any other occasion or as a waiver of any subsequent breach. 
 (f) Binding Effect; Successors. This Agreement shall be binding upon and shall inure to the benefit of the Company, IR plc and the
Employee and their respective heirs, legal representatives, successors and assigns. If the Company and/or IR plc shall be merged into or consolidated with another entity, the provisions of this Agreement shall be binding upon and inure to the
benefit of the entity surviving such merger or resulting from such consolidation. The Company and/or IR plc, as applicable, will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company and/or IR plc, as applicable, by agreement in form and substance satisfactory to the Employee, to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company and/or IR plc would be required to perform it if no such succession had taken place. The provisions of this paragraph shall continue to apply to each subsequent employer of the Employee hereunder in the event of any
subsequent merger, consolidation or transfer of assets of such subsequent employer. 
 (g) Calculations. Calculation of
all benefits and amounts payable hereunder shall be made, at the expense of the Company, by the Wellesley Hills, Massachusetts office of Watson Wyatt & Company (or the Company’s then actuary immediately prior to the Change in Control
Event). 
 (h) Plan Limitations. In the event the Company is unable to provide any benefit required to be provided
under this Agreement through a plan sponsored by the IR Group (or any member thereof), the Company shall, at its own cost and expense, take appropriate actions to insure that alternative arrangements are made so that equivalent benefits can be
provided to the Employee, including to the extent appropriate purchasing for the benefit of the Employee (and if applicable the Employee’s dependents) individual policies of insurance providing benefits, which on an after-tax basis, are
equivalent to the benefits required to be provided hereunder. 
  

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 (i) Payment Obligations. In the event the Company is unable to, or for any reason
does not, pay or provide to the Employee all or any portion of the payments and benefits required to be paid and provided under this Agreement (whether such payments and benefits are attributable to compensation (including but not limited to basic
annual salary and bonus), benefits under any plan, program or arrangement, or legal, business or outplacement expenses, or any other payment or benefit), IR plc shall guarantee, to the same extent that the Company is or would be liable for such
payments and benefits, that it will pay such amounts or provide such benefits to the Employee in accordance with the terms of this Agreement. Any such payments shall be made and any such benefits shall be provided within 10 days following the date
such payments or benefits should have been paid or provided by the Company. 
 (j) Controlling Law; Jurisdiction. This
Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey applicable to contracts made and to be performed therein, without regard to conflicts of laws principles. Any suit, action or proceeding related to
this Agreement, or any judgment entered by any court related to this Agreement, may be brought only in any court of competent jurisdiction in the State of New Jersey, and the parties hereby submit to the exclusive jurisdiction of such courts. The
parties (and any Affiliates of the Company or beneficiary of the Employee, or any successor to the Company or the Company’s Affiliate) irrevocably waive any objections which they may now or hereafter have to the laying of venue of any suit,
action or proceeding brought in any court of competent jurisdiction in the State of New Jersey, and hereby irrevocably waive any claim that any such action, suit or proceeding has been brought in an inconvenient forum. 
 (k) Compliance with Code Section 409A. This Agreement is intended to comply with Section 409A of the Code and will be so
interpreted. Notwithstanding anything herein to the contrary, (i) if, at the time of Employee’s termination of employment with the Company, the Employee is a “specified employee” as defined in Section 409A of the Code, and
if the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary to prevent the imposition of any accelerated or additional tax under Section 409A of the
Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Employee) until the date that is six months following
Employee’s Termination Date (or the earliest date as is permitted under Section 409A of the Code) and (ii) if any other payments of money or other benefits due to Executive hereunder could cause the application of an accelerated or
additional tax under Section 409A of the Code, the parties agree to restructure the payments or benefits to comply with Section 409A of the Code in a manner which does not diminish the value of such payments and benefits to the Employee.
Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code. To the extent any reimbursements of in-kind benefits due to the Employee under this Agreement
constitute “deferred compensation” under Section 409A of the Code, any such reimbursements of in-kind benefits shall be paid to the Employee in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). If, after payment of
any amounts or benefits under this Agreement, the Internal Revenue Service determines 

  

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that the payment of such amounts or benefits does not comply with Section 409A of the Code, and the Internal Revenue Service imposes upon the Employee
accelerated or additional tax, penalties, interest or other charges under Section 409A of the Code, the Company shall pay to the Employee before the due date that the Employee is required to make payment to the Internal Revenue Service, an
amount such that, after payment of all taxes, penalties, or interest in respect thereof, the Employee will have remaining the full amount necessary to satisfy the Employee’s obligation to pay any accelerated or additional tax, penalties,
interest and charges so imposed by the Internal Revenue Service. 
  

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 IN WITNESS WHEREOF, the Company, IR plc and the Employee have executed this Agreement as of the day and
year first above written. 
  

									
	INGERSOLL-RAND COMPANY	 		 	
				
	 	 		 		 	 
	By:	 	Herbert L. Henkel	 		 		 	EMPLOYEE
	Title:	 	Chairman and	 		 		 	
		 	Chief Executive Officer	 		 		 	
				
	INGERSOLL-RAND PLC	 		 		 	
				
	 	 		 		 	
	By:	 	Herbert L. Henkel	 		 		 	
	Title:	 	Chairman and	 		 		 	
		 	Chief Executive Officer	 		 		 	

  

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 Schedule A 
 CERTAIN DEFINITIONS 
 As used in this Agreement, and unless the context requires a different meaning,
the following terms have the meanings indicated: 
 “Affiliate”, used to indicate a relationship with a specified person,
means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such a specified person. 
 “Associate”, used to indicate a relationship with a specified person, means (i) any corporation, partnership, or other organization of which such specified person is an officer or partner;
(ii) any trust or other estate in which such specified person has a substantial beneficial interest or as to which such specified person serves as trustee or in a similar fiduciary capacity; (iii) any relative or spouse of such specified
person, or any relative of such spouse who has the same home as such specified person, or who is a director or officer of any member of the IR Group; and (iv) any person who is a director, officer, or partner of such specified person or of any
corporation (other than any member of the IR Group), partnership or other entity which is an Affiliate of such specified person. 
 “Beneficial Owner” means the same as such term is defined by Rule 13d-3 under the Securities Exchange Act of 1934, as amended (or any successor provision at the time in effect); provided, however, that any
individual, corporation, partnership, group, association, or other person or entity which has the right to acquire any of IR plc’s Voting Securities at any time in the future, whether such right is contingent or absolute, pursuant to any
agreement, arrangement, or understanding or upon exercise of conversion rights, warrants or options, or otherwise, shall be deemed the Beneficial Owner of such securities. 
 “Board” means the Board of Directors of IR plc (or, if IR plc is then a subsidiary of any other company, of the ultimate parent
company). 
 “Cause” means (i) any action by the Employee involving willful malfeasance or willful gross misconduct
having a demonstrable adverse effect on any member of the IR Group; (ii) substantial and continuing refusal by the Employee in willful breach of this Agreement to perform his or her employment duties hereunder; or (iii) the Employee being
convicted of a felony under the laws of the United States or any state. 
 Termination of the Employee for Cause shall be communicated by a
Notice of Termination given within one year after the Board (i) has knowledge of conduct or an event allegedly constituting Cause; and (ii) has reason to believe that such conduct or event could be grounds for Cause. For purposes of this
Agreement a “Notice of Termination” shall mean delivery to the Employee of a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called
and held for the purpose (after reasonable notice to the Employee (“Preliminary Notice”) and reasonable opportunity for the Employee, together with the Employee’s counsel, to be heard before the Board prior to such vote) of finding,
in the good faith opinion of the Board, that the Employee has engaged in the conduct constituting Cause and specifying the particulars thereof in detail. Upon the receipt of the Preliminary Notice, the Employee shall have 30 days in which to appear
with counsel or take such other action as he or she desires on his or her behalf, and such 








 
30-day period is hereby agreed to by the parties as a reasonable opportunity for the Employee to be heard. The Board shall no later than 45 days after the
receipt of the Preliminary Notice by the Employee communicate its findings to Employee. A failure by the Board to make its finding of Cause or to communicate its conclusion within such 45-day period shall be deemed to be a finding that the Employee
has not engaged in the conduct described herein. Any termination of the Employee’s employment (other than by death or Permanent Disability) within 45 days after the date that the Preliminary Notice has been given to the Employee shall be deemed
to be a termination for Cause; provided, however, that if during such period the Employee voluntarily terminates other than for Good Reason or the Company terminates the Employee other than for Cause, and the Employee is found (or is
deemed to be found) not to have engaged in the conduct described herein, such termination shall not be deemed to be for Cause. 
 “Change in Control Event” means the date (i) any individual, corporation, partnership, group, association or other person or entity, together with its Affiliates and Associates (each a “Person”) (other than a
trustee or other fiduciary holding securities under an employee benefit plan of the Company or IR plc), is or becomes the Beneficial Owner of securities of IR plc representing 30% or more of the combined voting power of IR plc’s Voting
Securities; (ii) the Continuing Directors fail to constitute a majority of the members of the Board; (iii) of consummation of any transaction or series of transactions under which IR plc is merged or consolidated with any other company in
which the shareholders of IR plc that own Voting Securities represent 50% or less of the combined voting power of IR plc Voting Securities immediately after consummation of such transaction or series of transactions; (iv) of any sale, lease,
exchange or other transfer, in one transaction or a series of related transactions, of all, or substantially all, of the assets of IR plc, other than any sale, lease, exchange or other transfer to any Person or entity where IR plc owns, directly or
indirectly, at least 80% of the combined voting power of the Voting Securities of such Person or entity or its parent corporation after any such transfer, or (v) any other event that the Continuing Directors determine to be a Change in Control
Event; provided, however, that in the case of a transaction described in (i), (iii) or (iv), above, there shall not be a Change in Control Event if the shareholders of IR plc immediately prior to any such transaction own (or
continue to own by remaining outstanding or by being converted into Voting Securities of the surviving entity or parent entity) more than 50% of the combined voting power of the Voting Securities of IR plc, the surviving entity or any parent of
either immediately following such transaction, in substantially the same proportion to each other as prior to such transaction. 
 “Continuing Director” means a director who either was a member of the Board on the date hereof or who became a member of the Board subsequent to such date and whose election, or nomination for election by IR plc’s
shareholders, was Duly Approved by the Continuing Directors on the Board at the time of such nomination or election, either by a specific vote or by approval of the proxy statement issued by IR plc on behalf of the Board in which such person is
named as nominee for director, without due objection to such nomination, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or entity other than the Board. 
 “Duly Approved by the Continuing Directors” means an action approved by the vote of at least two-thirds of the Continuing Directors then on the Board. 
 “Fiscal Year” means the fiscal year of the Company. 
  

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 “Good Reason” means (i) a substantial diminution in the Employee’s job
responsibilities or a material adverse change in the Employee’s title or status, from those in effect on the date hereof or as enhanced from time to time; (ii) a reduction of the Employee’s base salary or target bonus
(provided however, a reduction of the Employee’s base salary or target bonus shall not constitute Good Reason if there is a corresponding reduction in base salary for employees of the acquiring company who are similarly situated) or the failure
to pay Employee’s salary or bonus when due, or the failure to maintain on behalf of the Employee (and his or her dependents) benefits which are at least as favorable in the aggregate to those provided for in paragraph 3(b); (iii) the
relocation of the principal place of the Employee’s employment by more than 35 miles from the Employee’s principal place of employment immediately prior to the Change in Control Event, or the imposition of travel requirements on the
Employee not substantially consistent with such travel requirements existing immediately prior to the Change of Control Event; (iv) the failure of the Company and/or IR plc, as applicable, to obtain the assumption of, and the agreement to
perform, this Agreement by any successor as contemplated in paragraph 8(f); or (v) the failure of the Company and, to the extent applicable, IR plc to perform any of their other material obligations under this Agreement. Resignation for Good
Reason shall not be deemed to exist unless the Employee provides the Company with written notice of the existence of the condition supporting any of the foregoing events described in this definition within the period not to exceed 90 days after the
Employee’s recognition of the condition and the Company fails to remedy such conditions within thirty (30) days of receiving such written notice. 
 “IR Group” means the Company and its Affiliates, including without limitation, IR plc. 
 “Permanent Disability”, as applied to the Employee, means that (i) he or she has been totally incapacitated by bodily injury or disease so as to be prevented thereby from performing his or her duties hereunder;
(ii) such total incapacity shall have continued for a period of six consecutive months; and (iii) such total incapacity will, in the opinion of a qualified physician, be permanent and continuous during the remainder of the Employee’s
life. 
 “Termination” means (i) following the occurrence of a Change in Control Event, (A) the termination of the
Employee’s employment without Cause or (B) the resignation by an Employee for Good Reason, and (ii) prior to the occurrence of a Change in Control Event, but following the execution of an agreement or the commencement of a tender
offer, proxy contest or other action that, if consummated, would reasonably be expected to result in a Change in Control Event and, in each case, does result in a Change in Control Event, the termination of the Employee’s employment, or a
material adverse change in the Employee’s job responsibilities, title or status, reduction of the Employee’s base salary or target bonus, the relocation of the Employee’s principal place of employment by more than 35 miles or the
imposition of travel requirements on the Employee not substantially consistent with the Employee’s job; provided, that such term shall not include any termination of employment for Cause, any resignation without Good Reason (except as
provided in clause (ii), above), or any termination of employment on account of an Employee’s death or Permanent Disability; and provided further, that in the event of a Termination resulting from an event described in clause (ii) of this
definition, the Employee must actually terminate employment with the IR Group no later than the date immediately following the Change in Control Event. 
 “Termination Date” means the effective date of an Employee’s Termination; provided that, with respect to a Termination that occurs prior to a Change in Control Event, the effective date of
such Termination shall be deemed to be the date immediately following the Change in Control Event. 
  

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 “Voting Securities” means the outstanding securities entitled to vote generally in the
election of directors. 
  

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