Executive Change of Control Agreement



 Exhibit 10.34 
 EXECUTIVE CHANGE OF CONTROL AGREEMENT 
 This EXECUTIVE CHANGE OF CONTROL AGREEMENT
(“Agreement”) is made as of the 11th day of February 2008, between CIRCOR, Inc., a Massachusetts corporation (the “Company”), and Frederic M. Burditt (“Executive”). 
 WHEREAS, the Company presently employs the Executive in which capacity the Executive serves as an officer of the Company and its Parent (as defined
below); and 
 WHEREAS, the Board of Directors of the Parent (the “Board”) recognizes the valuable services rendered to the
Company, the Parent and their respective affiliates by the Executive; and 
 WHEREAS, the Board has determined that it is in the best
interests of the Company, the Parent and their affiliates to encourage in advance the continued loyalty of the Executive as well as the Executive’s continued attention to his assigned duties and objectivity in the event of a threatened or
possible change in control of the Parent; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and
other good and valuable consideration, the-receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 1.
Definitions. For purposes of this Agreement, the following terms shall have the following meanings: 
 “Cause” shall mean:
(a) conduct by Executive constituting a material act of willful misconduct in connection with the performance of his duties, including, without limitation, misappropriation of funds or property of the Company or any of its affiliates other than
the occasional, customary and de minimis use of Company property for personal purposes; (b) criminal or civil conviction of Executive, a plea of polo contendere by Executive or conduct by Executive that would reasonably be expected to result in
material injury to the reputation of the Company if he were retained in his position with the Company, including, without limitation, conviction of a felony involving moral turpitude; (c) continued, willful and deliberate non-performance by
Executive of his duties hereunder (other than by reason of Executive’s physical or mental illness, incapacity or disability) which has continued for more than thirty (30) days following written notice of such non-performance from the Chief
Executive Officer; or (d) a violation by Executive of the Company’s employment policies which has continued following written notice of such violation from the Chief Executive Officer. 
 “Change in Control” shall mean any of the following: 
 (a) Any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Act”) (other than the Parent, any of its subsidiaries, or any trustee,
fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Parent or any of its subsidiaries), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2
under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Parent representing twenty-five percent (25%) or more of either
(A) the combined voting power of the Parent’s then outstanding securities having the right to vote in an election of the Parent’s Board (“Voting Securities”) or (B) the then outstanding shares of Parent’s common
stock, par value $0.01 per share (“Common Stock”) (other than as a result of an acquisition of securities directly from the Parent); or 







 (b) Incumbent Directors (as defined below) cease for any reason, including, without limitation, as a
result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the Board; or 
 (c) The
stockholders of the Parent shall approve (A) any consolidation or merger of the Parent where the stockholders of the Parent, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger,
beneficially own (as such term is defined in Rule 13d3 under the Act), directly or indirectly, shares representing in the aggregate fifty percent (50%) or more of the voting shares of the Parent or other party issuing cash or securities in the
consolidation or merger (or of its ultimate parent corporation, if any), (B) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or
substantially all of the assets of the Parent or (C) any plan or proposal for the liquidation or dissolution of the Parent. 
 Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred for purposes of the foregoing clause (a) solely as the result of an acquisition of securities by the Parent which, by reducing the
number of shares of Common Stock or other Voting Securities outstanding, increases the proportionate number of shares beneficially owned by any person to twenty-five percent (25%) or more of either (A) the combined voting power of all of
the then outstanding Voting Securities or (B) Common Stock; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities or Common Stock (other
than pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from the Parent) and immediately thereafter beneficially owns twenty-five percent (25%) or more of either
(A) the combined voting power of all of the then outstanding Voting Securities or (B) Common Stock, then a “Change of Control” shall be deemed to have occurred for purposes of the foregoing clause (a). 
 “Good Reason” shall mean that Executive has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of
any of the following events: (A) a substantial diminution or other substantive adverse change, not consented to by Executive, in the nature or scope of Executive’s responsibilities, authorities, powers, functions or duties; (B) any
removal, during the term of this Agreement, from Executive of his titles as an officer of Parent; (C) an involuntary reduction in Executive’s Base Salary except for across-the-board reductions similarly affecting all or substantially all
management employees; (D) a breach by the Company of any of its other material obligations under this Agreement and the failure of the Company to cure such breach within thirty (30) days after written notice thereof by Executive;
(E) the involuntary relocation of the Company’s offices at which Executive is principally employed or the involuntary relocation of the offices of Executive’s primary workgroup to a location more than thirty (30) miles from such
offices, or the requirement by the Company that Executive be based anywhere other than the Company’s offices at such location on an extended basis, except for required travel on the Company’s business to an extent substantially consistent
with Executive’s business travel obligations; or (F) A reduction in Executive’s opportunity for annual incentive compensation below the annual incentive opportunity most recently in effect under the Company’s Executive Bonus
Incentive Plan prior to the Change in Control. 
 “Incumbent Directors” shall mean persons who, as of the Commencement Date,
constitute the Board; provided that any person becoming a director of the Parent subsequent to the 

  

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Commencement Date shall be considered an Incumbent Director if such person’s election was approved by or such person was nominated for election by a
vote of at least a majority of the Incumbent Directors; but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of members of the Board or
other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation, shall not be
considered an Incumbent Director. 
 “Parent” shall mean CIRCOR International, Inc., a Delaware corporation as well as its
successors by merger or otherwise. 
 2. Term. The term of this Agreement shall extend from the date hereof (the “Commencement
Date”) until the first anniversary of the Commencement Date; provided, however, that the term of this Agreement shall automatically be extended for one additional year on the first anniversary of the Commencement Date and each anniversary
thereafter unless, not less than 90 days prior to each such date, either party shall have given notice to the other that it does not wish to extend this Agreement; provided, further, that if a Change in Control occurs during the original or extended
term of this Agreement, the term of this Agreement shall continue in effect for a period of not less than twelve (12) months beyond the month in which the Change in Control occurred. 
 3. Change in Control Payment. The provisions of this Paragraph 3 set forth certain terms of an agreement reached between Executive and the Company
regarding Executive’s rights and obligations upon the occurrence of a Change in Control of the Parent. These provisions are intended to assure and encourage in advance Executive’s continued attention and dedication to his assigned duties
and his objectivity during the pendency and after the occurrence of any such event. These provisions shall terminate and be of no further force or effect beginning twelve (12) months after the occurrence of a Change of Control. 
 (a) Change in Control. 
 (i)
If within twelve (12) months after the occurrence of the first event constituting a Change in Control, Executive’s employment is terminated by the Company without Cause as defined in Section 1 or Executive terminates his employment
for Good Reason as provided in Section 1, then the Company shall pay Executive a lump sum in cash in an amount equal to two (2) times the sum of (A) Executive’s current Base Salary plus (B) Executive’s highest annual
incentive compensation under the Company’s Executive Bonus Incentive Plan in the three (3) immediately preceding fiscal years, excluding any sign-on bonus, retention bonus or any other special bonus; and 
 (ii) Notwithstanding anything to the contrary in any applicable option agreement or stock-based award agreement, upon a Change in Control,
all stock options and other stock-based awards granted to Executive by the Parent shall immediately accelerate and become exercisable or non-forfeitable as of the effective date of-such Change in Control. In addition, all restricted stock units held
by the Executive pursuant to the Management Stock Purchase Plan shall become fully vested upon a Change of Control and the Executive shall be entitled to receive the shares of stock represented by such restricted stock units. Executive shall also be
entitled to any other rights and benefits with respect to stock-related awards, to the extent and upon the terms provided in the employee stock option or incentive plan or any agreement or other instrument attendant thereto pursuant to which such
options or awards were granted; and 
  

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 (iii) The Company shall, for a period of two (2) years commencing on the Date of
Termination, pay such health insurance premiums as may be necessary to allow Executive, Executive’s spouse and dependents to continue to receive health insurance coverage substantially similar to the coverage they received prior to the Date of
Termination. 
 (iv) In addition, the Company shall, for a period of two (2) years commencing on the Date of Termination,
pay or promptly reimburse Executive for expenses incurred for leasing an automobile (the “Leasing Allowance”) in an amount equal to the Leasing Allowance that Executive was entitled to receive from the Company in accordance with the
Leasing Allowance policies and procedures then in effect prior to the Date of Termination. 
 (b) Additional Limitation. 
 (i) Anything in this Agreement to the contrary notwithstanding, in the event that any compensation, payment or distribution by the Company
to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code of 1986, as amended (the “Code”), the following provisions shall apply: 
 (A) If the
Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state and local income and employment taxes payable by Executive on the amount of the Severance Payments which are in excess of the Threshold
Amount, are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. 
 (B) If the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the-sum of (1) the Excise Tax and (2) the total of the Federal, state,
and local income and employment taxes on the amount of the Severance Payments which are in excess of the Threshold Amount, then the benefits payable under this Agreement shall be reduced (but not below zero) to the extent necessary so that the
maximum Severance Payments shall not exceed the Threshold Amount. To the extent that there is more than one method of reducing the payments to bring them within the Threshold Amount, Executive shall determine which method shall be followed; provided
that if Executive fails to make such determination within 45 days after the Company has sent Executive written notice of the need for such reduction, the Company may determine the amount of such reduction in its sole discretion. 
 For the purposes of this Paragraph 3, “Threshold Amount” shall mean three times Executive’s “base amount” within the meaning of
Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by
Executive with respect to such excise tax. 
 (ii) The determination as to which of the alternative provisions of Paragraph
3(b)(i) shall apply to Executive shall be made by Grant Thornton or any other nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company
and Executive 

  

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within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Company or Executive. For
purposes of determining which of the alternative provisions of Paragraph 3(b)(i) shall apply, Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar
year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of Executive’s residence on the Date of Termination, net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and local taxes. Any determination by the Accounting Firm shall be binding upon the Company and Executive. 
 4. Unauthorized Disclosure. Executive acknowledges that in the course of his employment with the Company (and, if applicable, its predecessors),
he has been allowed to become, and will continue to be allowed to become, acquainted with the Company’s and the Parent’s business affairs, information, trade secrets, and other matters which are of a proprietary or confidential nature,
including but not limited to the Company’s, the Parent’s and their affiliates’ and predecessors’ operations, business opportunities, price and cost information, finance, customer information, business plans, various sales
techniques, manuals, letters, notebooks, procedures, reports, products, processes, services, and other confidential information and knowledge (collectively the “Confidential Information”) concerning the Company’s, the Parent’s
and their affiliates’ and predecessors’ business. The Company agrees to provide on an ongoing basis such Confidential Information as the Company deems necessary or desirable to aid Executive in the performance of his duties. Executive
understands and acknowledges that such Confidential Information is confidential, and he agrees not to disclose such Confidential Information to anyone outside the Company or the Parent except to the extent that (i) Executive deems such
disclosure or use reasonably necessary or appropriate in connection with performing his duties on behalf of the Company and the Parent, (ii) Executive is required by order of a court of competent jurisdiction (by subpoena or similar process) to
disclose or discuss any Confidential Information, provided that in such case, Executive shall promptly inform the Company or the Parent, as appropriate, of such event, shall cooperate with the Company or the Parent, as appropriate, in attempting to
obtain a protective order or to otherwise restrict such disclosure, and shall only disclose Confidential Information to the minimum extent necessary to comply with any such court order; (iii) such Confidential Information becomes generally
known to and available for use in the Company’s industry (the “Fluid-Control Industry”), other than as a result of any action or inaction by Executive; or (iv) such information has been rightfully received by a member of the
Fluid-Control Industry or has been published in a form generally available to the Fluid-Control Industry prior to the date Executive proposes to disclose or use such information. Executive further agrees that he will not during employment and/or at
any time thereafter use such Confidential Information in competing, directly or indirectly, with the Company or the Parent. At such time as Executive shall cease to be employed by the Company, he will immediately turn over to the Company or the
Parent, as appropriate, all Confidential Information, including papers, documents, writings, electronically stored information, other property, and all copies of them provided to or created by him during the course of his employment with the
Company. The provisions of this Paragraph 4 shall survive termination of this Agreement for any reason. 
 5. Covenant Not to Compete.
In consideration of the benefits afforded the Executive under the terms provided in this Agreement and as a means to aid in the performance and enforcement of the terms of the provisions of Paragraph 4, Executive agrees that 
  

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 (a) during the term of Executive’s employment with the Company and for a period of twelve
(12) months thereafter, regardless of the reason for termination of employment, Executive will not, directly or indirectly, as an owner, director, principal, agent, officer, employee, partner, consultant, servant, or otherwise, carry on,
operate, manage, control, or become involved in any manner with any business, operation, corporation, partnership, association, agency, or other person or entity which is engaged in a business that is competitive with any of the Company’s or
the Parent’s products which are produced by the Company or the Parent or any affiliate of either entity as of the date of Executive’s termination of employment with the Company, in any area or territory in which the Company or the Parent
or any affiliate of either entity conducts operations; provided, however, that the foregoing shall not prohibit Executive from owning up to one percent (1%) of the outstanding stock of a publicly held company engaged in the Fluid-Control
Industry; and 
 (b) during the term of Executive’s employment with the Company and for a period of twelve (12) months thereafter,
regardless of the reason for termination of employment, Executive will not directly or indirectly solicit or induce any present or future employee of the Company or the Parent or any affiliate of either entity to accept employment with Executive or
with any business, operation, corporation, partnership, association, agency, or other person or entity with which Executive may be associated, and Executive will not employ or cause any business, operation, corporation, partnership, association,
agency, or other person or entity with which Executive may be associated to employ any present or future employee of the Company or the Parent without providing the Company or the Parent, as appropriate, with ten (10) days’ prior written
notice of such proposed employment. 
 Should Executive violate any of the provisions of this Paragraph, then in addition to all other rights
and remedies available to the Company at law or in equity, the duration of this covenant shall automatically be extended for the period of time from which Executive began such violation until he permanently ceases such violation. 
 6. Notice. For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed as follows: 
 if to the Executive: 
 At his home address as shown 
 in the Company’s personnel records; 
 if
to the Company: 
 CIRCOR, Inc. 
 25 Corporate Drive 
 Burlington, MA 01803 
 Attention: Board of Directors of CIRCOR International, Inc. 
 or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
 7. Not an
Employment Contract. This Agreement is intended only to provide those benefits for the Executive as set forth in Paragraph 3 in connection with a Change of Control. As such, this Agreement is not intended to and does not in any way constitute an
employment 

  

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agreement or other contract which would cause the employee to be considered anything other than an employee at will or to in any way be entitled to any
specific payments or benefits from the Company in the event of a termination of employment not subject to Paragraph 3 of this Agreement. 
 8. Miscellaneous. No provisions of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing and signed by Executive and such officer of the Company as may be
specifically designated by the Board. No waiver by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, unless specifically referred to herein, with respect to the subject matter hereof have been made by either party
which are not set forth expressly in this Agreement. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts (without regard to principles of conflicts of
laws). 
 9. Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. The invalid portion of this Agreement, if any, shall be modified by any court having jurisdiction to the extent necessary to render
such portion enforceable. 
 10. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed
to be an original but all of which together will constitute one and the same instrument. 
 11. Arbitration; Other Disputes. In the
event of any dispute or controversy arising under or in connection with this Agreement, the parties shall first promptly try in good faith to settle such dispute or controversy by mediation under the applicable rules of the American Arbitration
Association before resorting to arbitration. In the event such dispute or controversy remains unresolved in whole or in part for a period of thirty (30) days after it arises, the parties will settle any remaining dispute or controversy
exclusively by arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. Notwithstanding the
above, the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of Paragraph 4 or 5 hereof. 
 12. Litigation and Regulatory Cooperation. During and after Executive’s employment, Executive shall reasonably cooperate with the Company and
the Parent in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company and/or the Parent which relate to events or occurrences that transpired while Executive was
employed by the Company; provided, however, that such cooperation shall not materially and adversely affect Executive or expose Executive to an increased probability of civil or criminal litigation. Executive’s cooperation in connection with
such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company and/or the Parent at mutually convenient times. During and after
Executive’s employment, Executive also shall cooperate fully with the Company and the Parent in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to
events or occurrences that transpired while Executive was employed by the Company. The Company shall also provide Executive with compensation on an hourly basis (to be derived from the sum of his Base Compensation and Average Incentive Compensation)
for requested litigation and regulatory cooperation that occurs 

  

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after his termination of employment, and reimburse Executive for all costs and expenses incurred in connection with his performance under this Paragraph 12,
including, but not limited to, reasonable attorneys’ fees and costs. 
 13. Gender Neutral. Wherever used herein, a pronoun in
the masculine gender shall be considered as including the feminine gender unless the context clearly indicates otherwise. 
 IN WITNESS
WHEREOF, the parties have executed this Agreement effective on the date and year first above written. 
  

			
	CIRCOR, INC.
		
	By:	 	 /s/    A. William Higgins

		 	A. William Higgins
		 	Vice President
	
	EXECUTIVE
	
	 /s/    Frederic M. Burditt

	Frederic M. Burditt


  

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 SUMMARY OF PROVISIONS OF 
 EXECUTIVE CHANGE OF CONTROL AGREEMENT 
  

			
	 PROVISION
	  	 
	Original Term of Agreement	  	One year
		
	Renewal	  	Automatic extension of term for one additional year, unless either party gives at least 90 days notice.
		
	Term of Agreement After Change in Control	  	At least 12 months beyond the month in which the Change in Control occurred.
		
	Change in Control Triggering Event	  	Within 12 months of a Change in Control, termination by Company without “Cause” or termination by Executive with “Good Reason”.
		
		  	“Cause” defined as: (A) willful misconduct (including lying, cheating or stealing); (B) criminal or civil conviction, a plea of nolo contendere, conduct injuring reputation of the
Company, or conviction of a felony involving moral turpitude; (C) continued and deliberate non-performance by Executive after written notice; (D) breach of confidentiality or non-competition/non-solicitation provisions; or (E) violation of
Company’s employment policies after written notice.
		
		  	“Good Reason” defined as (A) substantial diminution (without consent) in the nature or scope of Executive’s responsibilities, etc.; (B) removal of title; (C) involuntary
reduction in Base Salary except for across-the-board salary reductions; (D) a breach by the Company of material obligations under this Agreement and failure to cure within 30 days; (E) the involuntary relocation of Executive’s principal work
location or location of Executive’s primary workgroup to a location more than 30 miles away, or requiring Executive to be based anywhere other than such offices on an extended basis, except for required travel. Executive must comply with
“Good Reason Process” for a valid termination for Good Reason; or (F) A reduction in Executive’s opportunity for annual incentive compensation below the annual incentive opportunity most recently in effect under the Company’s
Executive Bonus Incentive Plan prior to the Change in Control
		
		  	“Good Reason Process” requires a 90-day period for the Company and Executive to attempt in good faith to modify their relationship in a mutually acceptable manner.
		
	Treatment of Equity Awards	  	All options and other stock-based awards vest upon Change in Control.









			
	Change in Control Payments	  	2 times the sum of current Base Salary and highest bonus during previous three years.
		
		  	Company pays health premiums for Executive and family for a period of 2 years.
		
	Automobile Leasing Allowance	  	Two years consistent with company policy prior to termination.
		
	Gross-Up Payment	  	None, but modified cutback (i.e., cutback applies only if Executive is better off on an after-tax basis).
		
	Confidentiality	  	Standard confidentiality provision with obligation to return all information when employment ceases. Provision survives the termination of the Agreement.
		
	Non-Competition and Non-Solicitation	  	Applies during employment and for a period of 12 months thereafter.
		
		  	Restricts Executive directly or indirectly (in any capacity) from becoming involved (in any manner) with any entity or business that competes with the Company’s products as of the date
of termination.
		
		  	Executive will not solicit any present or future employee of the Company to accept employment with Executive or his associated businesses.
		
		  	Executive will not employ any Company employee without providing the Company with 10 days prior written notice.
		
		  	Non-compete covenant does not prohibit Executive from owning up to 1% of the outstanding stock of a publicly-held company engaged in the Fluid Control Industry.
		
	Disputes	  	Disputes will be settled by binding arbitration.
		
	Litigation and Regulatory Cooperation	  	Required during and after employment. Executive compensated for time on an hourly basis with respect to cooperation provided after termination of employment. Executive reimbursed for costs
and expenses (including attorney’s fees) associated with cooperation.

  

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