Document:

EXHIBIT 10.1

 

SEPARATION
AND RELEASE AGREEMENT

 

THIS
SEPARATION AND RELEASE AGREEMENT (“Agreement”) is between
David B. Burritt (“I,” “me” or “my”) and Caterpillar Inc. (“Employer”).  Employer and I agree:

 

1.         Employment
through September 30, 2010.  My
employment with Employer will terminate effective October 1, 2010 (the “Termination
Date”).  My active service performing the
function of Vice President, Global Finance & Strategic Services
Division, and as Chief Financial Officer, will end effective June 1, 2010.  I will continue as an active employee of
Employer through September 30, 2010. 
During this period I have the opportunity to pursue full time employment
opportunities with another employer without compromising my eligibility to
receive the payments and benefits described in this Agreement.  This provision in no way limits Employer’s
rights to enforce my obligations under Paragraph 6 of this Agreement.  I agree that I will be available with
appropriate advance notice (48 hours to the extent practicable) so as to not
compromise any other employment obligations I may have, to perform such duties
as required by the Chief Financial Officer through such date.  From June 1, 2010 through September 30,
2010, I will continue to receive my current base salary and will be
entitled to participate in the same employee benefit and incentive compensation
plans/programs as other similarly situated employees, subject to any
restrictions, limitations and discretionary authority specified in such plans
and programs. By way of example but not limitation, I will be eligible to
receive pro rata payments pursuant to the Caterpillar Inc. Short-Term Incentive
Plan for Management, Salaried and Non-Bargained Hourly Employees (“STIP”) and
the Caterpillar Inc. Long-Term Cash Performance Plan (“LTCPP”) to the extent of
actual attainment of the respective STIP and LTCPP performance goals/metrics
and in accordance with the terms and provisions of such plans. I understand
that my final performance summary rating as an employee effective on October 1,
2010 will not negatively impact my receipt of STIP and LTCPP that I am eligible
to receive as described in this Agreement. 
I further understand that after October 1, 2010 I will receive as
part of my final wages payment for 22 days of vacation time that I will not
have used during 2010 in the amount of $42,646.56.

 

2.         Separation Payments and Benefits.  Employer will provide me with the following
separation payments and benefits, less applicable tax withholding and
deductions, in addition to the compensation I will receive as an active
employee through September 30, 2010:

 

A.        A lump sum payment paid as soon as
administratively practicable following October 1, 2010 of $857,027 in
exchange for the promises set forth in paragraphs 3, 4, 5 and 11 of this
Agreement.  In no event shall such lump
sum payment be paid later than December 31, 2010.

 

B.        A lump sum payment paid as soon as
administratively practicable following October 1, 2011 of $490,000, in
exchange for the promises set forth in paragraph 6 of this Agreement.  In no event shall such lump sum payment be
paid later than December 31, 2011.

 

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C.        Outplacement services for a period of up
to six months provided by Employer through the service provider Challenger,
Gray, & Christmas, Inc. in exchange for any other promises made
by me in this Agreement.   I understand I may choose to
commence these services in 2010 within 30 days of signing this agreement or on October 1,
2010. These services will continue for six (6) months after I choose to
commence receipt of these services, or until I may be placed with another
employer, whichever should occur first.

 

3.         Release.  I
release the following parties from all claims I may have, known or unknown,
against them:

 

·          Employer;

·          Employer’s parent, subsidiary and
affiliated companies;

·          Employer’s predecessors; and

·          All of the above companies’ agents,
directors, officers, employees, representatives, fiduciaries, shareholders,
successors and assigns.

 

My release of claims
includes all claims related to my employment with Employer or the termination
of my employment.  For example, my
release includes claims based on:

 

·          Any federal statute, including:  the False Claims Act (including any right to
share in any recovery by the United States government); Title VII of the Civil
Rights Act of 1964; the Civil Rights Act of 1866; the Civil Rights Act of 1874;
the Age Discrimination in Employment Act (ADEA); the Equal Pay Act; the
Americans with Disabilities Act; the Employee Retirement Income Security Act of
1974; and the National Labor Relations Act;

·          Any state statute, including
discrimination and whistleblower statutes;

·          Any ordinance;

·          Any express or implied contract
between Employer and me;

·          Any tort, such as defamation,
misrepresentation, infliction of emotional distress, or fraud;

·          Negligence; or

·          Any other legal theory.

 

My release does not:  (i) affect my right to obtain any vested
and nonforfeitable balance in my accounts under any retirement plan; (ii) preclude
me from exercising any conversion or continuation coverage rights I may have under
Employer’s welfare benefit plans; or (iii) waive my right to file an
administrative charge with or participate in an administrative proceeding
conducted by any governmental agency concerning my employment, although my
release does waive my right to receive any individual remedy, including
monetary damages, in connection with any charge.

 

4.         Cooperation and Assistance.  I agree that I will cooperate (i) with
Employer in the investigation, prosecution or defense of any potential claims
or concerns regarding Employer’s or any affiliates’ business about which I have
relevant knowledge, including by providing truthful information and testimony
as reasonably requested by Employer, and (ii) with all government
authorities on matters pertaining to any investigation, litigation or
administrative

 

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proceeding concerning
Employer or its affiliates.  Employer
will in turn cooperate and assist me with addressing any such matters and will
reimburse me for any reasonable travel and out-of-pocket expenses I incur in
providing such cooperation.  I further
agree to inform Employer of all subpoenas, correspondence, telephone calls,
requests for information, inquiries or other contacts I may receive from third
parties, including governmental agencies, concerning any fact or circumstances
known to me during my employment with Employer. 
I agree to inform Employer within two (2) business days of each
such contact.  Employer will in
accordance with its applicable bylaws and internal company policies indemnify
me against any and all claims and losses that may arise as a result of acts or
omissions by me in the scope of my employment, and/or my service as Vice
President, Global Finance & Strategic Services Division, and as Chief
Financial Officer.

 

5.         Non-Disparagement.  I agree not to make any negative comment
about or otherwise disparage Employer or those associated with it orally or in
writing, directly or by implication, to any person, including Employer’s
customers or agents.  I further agree not
to provide testimony as an expert or paid witness on behalf of a party adverse
to Employer or its affiliates.  This
paragraph does not prohibit me from testifying pursuant to a subpoena or from
accepting witness fees accompanying a subpoena, and this paragraph in no way
limits my right to file a charge with or participate in any administrative
proceeding conducted by a governmental agency relating to my employment.

 

6.         Restrictive Covenants.  For 12 months following my employment termination, I
will not, directly or indirectly, without Employer’s prior written consent, do
any of the following:

 

a.         Solicit any business competitive with
any Caterpillar business from any person or entity who: (i) was a
Caterpillar provider or customer within the 18 months before my employment
termination and (ii) with whom I had contact to further Caterpillar’s
business or for whom I performed services, or supervised the provision of
services for, during my employment;

 

b.         Hire, employ, recruit or solicit any
Caterpillar employee or consultant who possesses confidential information of
Caterpillar;

 

c.         Induce or influence any Caterpillar
employee, consultant, customer or provider to terminate his, her or its
employment or other relationship with Caterpillar;

 

d.         Engage or participate in, or in any way
render services or assistance to, any business that competes, directly or
indirectly, with any Caterpillar product or service that I participated in,
engaged in, or had Confidential Information regarding, in any geographic
territory over which I had responsibilities, during the 18 months before my
employment termination;

 

e.         Assist anyone in any of the activities
listed above.

 

If I violate the promises
in this paragraph, in addition to all other remedies, I shall not be
entitled to receive any further payments or benefits under this Agreement.  However, my obligations, releases, and
promises in this Agreement shall survive and be continuing.  I specifically

 

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acknowledge and agree
that that the consideration already provided by this Agreement is sufficient
for the continuing obligations, releases and covenants herein.

 

7.         Acknowledgment of Obligations.   I acknowledge that during my
employment, I developed and have been exposed to trade secrets or
confidential information regarding Employer and its affiliates, including
business strategies, operations, and actual and potential customers and
suppliers (“Confidential Information”). 
Employer considers such Confidential Information to be valuable and
proprietary.  I agree that after my
termination date I remain bound by the Intellectual Property Agreement that I
signed during my employment with Employer. 
I acknowledge that I am under a continuing obligation to keep confidential,
not disclose and not use any confidential information except as specifically
authorized by Employer.  I understand I
will be required to sign an Exit Statement upon my separation from employment
that reaffirms these obligations regarding trade secret and confidential
information.  Should I gain employment at
other employers in the future, I understand that Employer has Conflict of
Interest guidelines in effect that may impact its purchasing relationships and
practices with such possible employers, as stated in Employer’s Purchasing
Practices No. 49. Both Employer and I agree that I should contact the
Chief Financial Officer so that Employer may determine whether any such
restriction on my future employment exists by operation of this Agreement, or
whether any conflict of interest as contemplated by Purchasing Practices No.49
exists regarding my employment opportunities with such possible employers.  Regarding the obligations of Purchasing
Practices No.49, Employer and I agree that we will each use our best efforts to
assess whether such conflict of interest may be avoided prior to my accepting
employment with such other employers.

 

8.         Disclosure.  I
have reviewed Employer’s Worldwide Code of Business Conduct (the “Code”) and I
understand my obligations to Employer under the Code.  I agree that I have been given an adequate
opportunity to advise Employer, and that I have fully and truthfully advised
Employer, of any facts that I am aware of that constitute or might constitute a
violation of the Code, any other Employer policies, or any ethical, legal or
contractual standards or obligations of Employer or its affiliates. If I learn
of such facts in the future, I agree to report them to Employer by
contacting Employer’s Office of Business Practices.

 

9.         Stock Options, Restricted Stock, Restricted Stock Units,
Stock Appreciation Rights.  Nothing
in this Agreement is intended to or does supersede or otherwise affects the
terms of any agreement, award document or certificate relating to a grant of
stock options, restricted stock, restricted stock units or stock appreciation
rights under the equity plans.  My rights
and obligations under any such agreement, award document or certificate,
including but not limited to any restrictive covenants, remain in full force
and effect according to their terms.

 

10.       Reference.  I agree that I will direct all inquiries
regarding my employment, including those from prospective employers, to
Employer’s Chief Financial Officer.

 

11.       Confidentiality of Agreement.  Both Employer and I will keep this Agreement
confidential except as required by law and I will not disclose its terms to
anyone except my spouse or domestic partner, legal counsel, and financial or
tax advisor, provided these individuals agree to be bound by the terms of this
confidentiality provision, and as required by law.

 

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12.       Judicial Modification and Severability.  If any of this Agreement’s provisions is
determined to be unenforceable, Both Employer and I agree that such provision
should be modified so that it is enforceable or, if modification is not
possible, that it should be severed, and the enforceability of the remaining
provisions will not be affected by such modification or severance.

 

13.       Period to Consider Signing Agreement.  I have 45
days to consider whether to sign this Agreement.

 

14.       Revocation Period.  I may revoke this Agreement up to 7 days
after I sign it.  To be effective, my
revocation must be:  (i) in writing;
(ii) sent to Alexander C. Giftos, Senior Corporate Counsel, 100 NE Adams
Street, Peoria, IL 61629; and (iii) sent within the 7-day period in a
manner that provides proof it was sent (e.g., postmarked within the 7-day
period).

 

15.       Consulting an Attorney.  I understand that Employer has advised me to
consult with an attorney prior to signing this Agreement, but that any legal
consultation is at my own expense.  I
agree that I have had an adequate opportunity to consult with an attorney, I
have read and understand this Agreement, and I am voluntarily signing this
Agreement.

 

16.       Internal Revenue Code Section 409A. I understand and agree that the
separation payments made pursuant to this Agreement do not constitute deferred
compensation for purposes of Section 409A of the Internal Revenue Code of
1986 and its accompanying regulations (“Section 409A”).   Specifically, the payment described in Section 2.A.
of this Agreement will be made in a manner that will cause it to be a
short-term deferral as described in Treas. Reg. § 1.409A-1(b)(4) and the
payment described in Section 2.B. constitutes separation pay due to
involuntary separation from service as described in Treas. Reg. §
1.409A-1(b)(9)(iii).  This Agreement
shall be implemented and construed in a manner to give effect to the foregoing.  In no event whatsoever shall Employer or
any of its affiliates be liable for any tax, interest or penalties that may be
imposed on me pursuant to Section 409A.  Neither Employer nor any of its affiliates
have any obligation to indemnify or otherwise hold me harmless from any such
taxes, interest or penalties, or liability for any damages related thereto

 

17.       Non-Admission.  Nothing in this Agreement is intended to be
an admission by Employer or myself that either party has violated any law or
engaged in any wrongdoing.

 

18.       Governing Law.  This Agreement is governed by Illinois law.

 

19.       Entire Agreement.  This Agreement and any other documents
referenced in it are the entire agreement between Employer and me regarding my
employment termination.  I agree that
this Agreement may only be changed by a written amendment signed by both
Employer and me.  Any changes to this
Agreement after it was first presented to me, whether material or immaterial,
do not restart the decision period described in the Section entitled “Period
to Consider Signing Agreement.”

 

 

	
  Date    5/24/10

  	
  /s/
  David B. Burritt

  
	
   

  	
  David B. Burritt

  

 

 

	
   

  	
  CATERPILLAR INC.

  
	
   

  	
   

  
	
  Date    5/25/10

  	
  /s/
  Gregory S. Folley

  
	
   

  	
  Gregory S. Folley

  
	
   

  	
  Vice President, Human
  Services Division

  

 

5EXHIBIT 10.2

 

 

	
  

  	
  Caterpillar Inc.

  100 NE Adams Street

  Peoria, Illinois 61629

  

  June 9, 2010

  

 

James W. Owens

Chairman and CEO

Caterpillar Inc.

100 NE Adams St.

Peoria, Illinois 61629

 

RE:  Administrative Support & Home Security In
Retirement

 

Jim:

 

The Compensation Committee recognizes the importance
of having access to the tools and resources you’ll need as you continue to
represent and advocate for Caterpillar. Your role as a champion for the company
in your retirement will be invaluable to our future success. The following
outlines the terms of support provided by Caterpillar upon your retirement.

 

Peoria
Office

An office will be made
available to you for up to five (5) years following retirement at a Caterpillar
facility in the Peoria area.

 

Administrative
Assistant

Administrative assistant
support will be provided by Caterpillar for up to five (5) years following your
retirement.  Administrative assistant
support will be provided on an hourly basis up to, but not to exceed, 30 hours
per week at a rate equal to the hourly rate paid to your current administrative
assistant at the time of retirement for the first two (2) years.  For the remaining three (3) years of the
five-year period of administrative support, a reimbursement of $4,500 per month
will be available for your use on any administrative needs you deem
necessary.  Per Caterpillar practice, the
company will pay the administrative assistant monthly based on your sign-off on
hours (first two years) or monthly reimbursement (last three years).

 

Home
Security

Caterpillar will continue
to provide home security, at your current level, through December 31,
2012.  Following that, the company will
continue to provide security on request at your current Peoria Heights
residence on an out-of-pocket cost recovery basis to be paid by you.

 

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IT
support

A Caterpillar laptop
computer, standard related home /office equipment/software and IT support will
be provided for you and your Caterpillar administrative assistant for up to
five (5) years following retirement. 
Starting with the date of your retirement, all e-mail communications
will need to flow through personal e-mail accounts.

 

Travel
Agent Support

You may continue to use
BCD Travel or other company travel agencies for up to five (5) years, but of
course will be responsible to pay for your own travel and related services.

 

If you feel any of these
benefits become unnecessary before the specified dates above, you may elect to
discontinue them at any time.  Finally,
please consult your tax advisor regarding the taxation of these benefits.

 

 

/s/
David R. Goode

David R. Goode

Chairman, Compensation
Committee

Caterpillar Inc.

 

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