Document:

EXHIBIT (10.15)

 

ECOLAB MIRROR PENSION PLAN

 

 

(As Amended and Restated Effective January 1, 2011)

 

 

ECOLAB MIRROR PENSION PLAN

 

(As Amended and Restated Effective as of January 1, 2011)

 

WHEREAS, Ecolab Inc. (the “Company”) has established the Ecolab Pension Plan (the “Pension Plan”), a qualified defined benefit pension plan; and

 

WHEREAS, Sections 401(a)(17) and 415 of the Code place certain limitations on the amount of benefits that would otherwise be made available under the Pension Plan for certain participants; and

 

WHEREAS, the Company previously established the Ecolab Mirror Pension Plan (the “Plan”) to provide the benefits which would otherwise have been payable to such participants under the Pension Plan except for such limitations, in consideration of services performed and to be performed by such participants for the Company and certain related corporations; and

 

WHEREAS, the American Jobs Creation Act of 2004, PX. 108-357 (the “AJCA”) added a new Section 409A to the Code, which significantly changed the Federal tax law applicable to “amounts deferred” under the Plan after December 31, 2004; and

 

WHEREAS, before the issuance by the U.S. Treasury and the Internal Revenue Service (the “IRS”) of interpretive guidance with respect to Code Section 409A, the Company amended the Plan to temporarily freeze the accrual of Mirror Pension Benefits hereunder as of December 31, 2004; and

 

WHEREAS, the IRS and U.S. Treasury subsequently issued regulations and other guidance regarding the requirements of and compliance with Code Section 409A; and

 

WHEREAS, the Board of Directors of the Company directed and authorized appropriate officers of the Company to amend the Plan to (a) reinstate the accrual of Mirror Pension Benefits, effective retroactively as of January 1, 2005 and (b) comply, with respect to the Non-Grandfathered Mirror Pension Benefits thereunder, with the requirements of Code Section 409 and guidance issued thereunder; and

 

WHEREAS, the Plan was amended and restated in its entirety, effective as of January 1, 2005; and

 

WHEREAS, the Board of Directors of the Company authorized the appropriate officers of the Company to amend the Plan (i) to use the lump sum actuarial factors to determine the annual installment payment amount (including an increase in installment payments that were commenced prior to January 1, 2011), and (ii) to include an actuarial increase in the non-grandfathered portion of any Standard Mirror Pension Benefit payments that are required to be deferred as a result of the five (5) year redeferral rule to a date that is after the later of termination of employment or age 62; and

 

WHEREAS, the Plan was amended and restated in its entirety, effective as of December 31, 2010; and

 

WHEREAS, the Company wishes to clarify ambiguous language in the Plan document.

 

NOW, THEREFORE, pursuant to Section 1.3 of the Plan and Section 5.1 of the Ecolab Inc. Administrative Document for Non-Qualified Benefit Plans, the Company hereby amends and restates the Plan in its entirety, effective as of January 1, 2011, to read as follows:

 

 

ARTICLE I
 PREFACE

 

Section 1.1            Effective Date.

 

(1)           The effective date of this amended and restated Plan is January 1, 2011.

 

(2)           The benefit, if any, payable with respect to a former Executive who Retired or died prior to January 1, 2005 (and who is not rehired by a member of the Controlled Group thereafter) shall be determined by, and paid in accordance with, the terms and provisions of the Plan as in effect prior to January 1, 2005, subject to Section 1.4 and 3.2(2)(c).  Notwithstanding any provision of the Plan to the contrary, an Executive’s Mirror Pension Benefit (which was temporarily frozen from December 31, 2004 through December 31, 2008) shall be retroactively adjusted on January 1, 2009 to reflect the benefit that would have been accrued by the Executive under the Plan, in accordance with Section 3.1, during the period commencing on January 1, 2005 and ending on the earlier of December 31, 2008 or the date on which the Executive terminates his services with all Employers as an employee.

 

Section 1.2            Purpose of the Plan.  The purpose of this Plan is to provide additional retirement benefits for certain management and highly compensated employees of the Company who perform management and professional functions for the Company and certain related entities.

 

Section 1.3            Administrative Document.  This Plan includes the Ecolab Inc. Administrative Document for Non-Qualified Benefit Plans (the “Administrative Document”), which is incorporated herein by reference.

 

Section 1.4            American Jobs Creation Act of 2004 (AJCA).

 

(1)           To the extent applicable, it is intended that the Plan (including all Amendments thereto) comply with the provisions of Code Section 409A, as enacted by the American Jobs Creation Act of 2004, P.L. 108-357 (the “AJCA”), so as to prevent the inclusion in gross income of any amount of Mirror Pension Benefit accrued hereunder in a taxable year that is prior to the taxable year or years in which such amounts would otherwise be actually distributed or made available to the Executives.  The Plan shall be administered in a manner that will comply with Code Section 409A, including regulations or any other guidance issued by the Secretary of the Treasury and the Internal Revenue Service with respect thereto (collectively with the AJCA, the “409A Guidance”).  All Plan provisions shall be interpreted in a manner consistent with the 409A Guidance.

 

(2)           The Administrator shall not take any action hereunder that would violate any provision of Code Section 409A.  The Administrator is authorized to adopt rules or regulations deemed necessary or appropriate in connection with the 409A Guidance to anticipate and/or comply with the requirements thereof (including any transition or grandfather rules thereunder).

 

(3)           Notwithstanding any provision of the Plan, any Grandfathered Mirror Pension Benefits (including any Mirror Pre-Retirement Pension Benefits attributable thereto) shall continue to be governed by the law applicable to nonqualified deferred compensation prior to the addition of Section 409A to the Code and shall be subject to the terms and conditions specified in the Plan as in effect prior to January 1, 2005, except as otherwise provided herein.  Notwithstanding any provision of the Plan to the contrary, neither the Company nor the Administrator guarantee to any Executive or Death Beneficiary any specific tax consequences of participation in or entitlement to or receipt of benefits from, the Plan, and each Executive or the Executive’s Death Beneficiary shall be solely responsible for payment of any taxes or penalties incurred in connection with his participation in the Plan.

 

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ARTICLE II
 DEFINITIONS

 

Words and phrases used herein with initial capital letters which are defined in the Administrative Document or the Pension Plan are used herein as so defined, unless otherwise specifically defined herein or the context clearly indicates otherwise.  The following words and phrases when used in this Plan with initial capital letters shall have the following respective meanings, unless the context clearly indicates otherwise:

 

Section 2.1            “Actuarial Equivalent” or “Actuarially Equivalent.” A benefit is the “Actuarial Equivalent” of another benefit if, on the basis of Actuarial Factors, the present values of such benefits are equal.

 

Section 2.2            “Actuarial Factors” shall mean the actuarial assumptions set forth in Exhibit A which is attached to and forms a part of this Plan.

 

Section 2.3            “Code Limitations” shall mean the limitations imposed by Code Sections 401(a)(17) and 415, or any successor(s) thereto, on the amount of the benefits which may be payable to or with respect to an Executive from the Pension Plan.

 

Section 2.4            “Death Beneficiary” shall mean the beneficiary designated under this Plan and the SERP.  The designation of a Death Beneficiary may be made, and may be revoked or changed only by an instrument (in form prescribed by Administrator) signed by the Executive and delivered to the Administrator during the Executive’s lifetime.  If the Executive is married on the date of his death and has been married to such spouse throughout the one-year period ending on the date of his death, his designation of a Death Beneficiary other than, or in addition to, his spouse under the Plan shall not be effective unless such spouse has consented in writing to such designation.  Any Mirror Pension Benefits remaining to be paid after the death of a Death Beneficiary (or a contingent Death Beneficiary, to the extent designated by the Executive) shall be paid to the Death Beneficiary’s estate.  If no Death Beneficiary is designated by the Executive or all designated Death Beneficiaries predecease the Executive, the Executive’s Death Beneficiary shall be his spouse, and if there is no surviving spouse, then the Executive’s estate.  The most recent Death Beneficiary designation on file with the Administrator will be given effect, and in the event of conflicting forms files simultaneously under this Plan and the SERP, the Death Beneficiary designation under the SERP will govern.

 

Section 2.5            “Disability” shall mean any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the Executive to be unable to perform the duties of his position of employment or any substantially similar position of employment.

 

Section 2.6            “Executive” shall mean an Employee of an Employer (1) whose Annual Compensation from the Employers for the preceding Plan Year exceeds the dollar limitation described in Code Section 401(a)(17), (2) who is a Participant in the Pension Plan, and (3) who is selected by the Administrator to participate in the Plan.  Once an Employee has satisfied the requirements of an Executive and commenced participation in the Plan, his participation may continue, notwithstanding the fact that his Annual Compensation is reduced below the limitation described in Code Section 401(a)(17), until the Administrator determines, in his sole discretion, that the Employee would fail to satisfy the requirements of a “management or highly compensated employee” under ERISA.

 

Section 2.7            “Grandfathered Mirror Pension Benefit” shall mean the portion of an Executive’s Mirror Pension Benefit that is deemed to have been deferred (within the meaning of the 409A Guidance)

 

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under the Plan before January 1, 2005 and that is equal to the present value as of December 31, 2004 of the vested Mirror Pension Benefit to which the Executive would be entitled under the Plan, as in effect on October 3, 2004, if the Executive voluntarily terminated employment with the Controlled Group without cause on December 31, 2004, and received a payment, on the earliest possible date allowed under the Plan, of his Mirror Pension Benefit in the form with the maximum value (increased in subsequent years to equal the present value of the benefit the Executive actually becomes entitled to receive, in the form and at the time actually paid, determined under the terms of the Plan as in effect on October 3, 2004, without regard to any services rendered or Compensation increases applicable after December 31, 2004).

 

Section 2.8            “Mirror Savings Plan” shall mean the Ecolab Mirror Savings Plan, as such plan may be amended from time to time.

 

Section 2.9            “Mirror Pension Benefit” shall mean the retirement benefit determined under Article III.

 

Section 2.10          “Mirror Pre-Retirement Pension Benefit” shall mean the pre-retirement benefit determined under Article IV.

 

Section 2.11          “Non-Grandfathered Mirror Pension Benefit” shall mean any Mirror Pension Benefit that is not a Grandfathered Mirror Pension Benefit.

 

Section 2.12          “Plan” shall mean this Ecolab Mirror Pension Plan, as it may be amended from time to time.

 

Section 2.13          “Separation from Service” or to “Separate from Service” shall mean any termination of employment with the Controlled Group due to retirement, death, disability or other reason; provided, however, that no Separation from Service is deemed to occur while the Executive (1) is on military leave, sick leave, or other bona fide leave of absence that does not exceed six (6) months (or, in the case of Disability, twelve (12) months), or if longer, the period during which the Executive’s right to reemployment with the Controlled Group is provided either by statute or by contract, or (2) continues to perform services for the Controlled Group at an annual rate of fifty percent (50%) or more of the average level of services performed over the immediately preceding 36-month period (or the full period in which the Executive provided services (whether as an employee or as an independent contractor) if the Executive has been providing services for less than 36 months).  With respect to the terms of the Plan affecting Non-Grandfathered Mirror Pension Benefits, any reference to “termination of employment” in the Plan shall mean Separation from Service as defined in this Section.  Whether an Executive has incurred a Separation from Service shall be determined in accordance with the 409A Guidance.

 

Section 2.14          “SERP” shall mean the Ecolab Supplemental Executive Retirement Plan, as in effect from time to time.

 

Section 2.15          “SERP Benefit” shall mean an Executive’s benefit accrued under the SERP.

 

Section 2.16          “Specified Employee” shall mean “Specified Employee” as defined in the Administrative Document.

 

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ARTICLE III
 MIRROR PENSION BENEFITS

 

Section 3.1            Amount of Mirror Pension Benefits.

 

(1)           In General.  Each Executive whose benefits under the Pension Plan payable on or after the Effective Date are reduced due to the Code Limitations shall be entitled to a Mirror Pension Benefit, which shall be determined as hereinafter provided.

 

(2)           Standard Mirror Pension Benefits.  The Standard Mirror Pension Benefit shall be a monthly retirement benefit calculated using the final average pay benefit formula specified in Article 4 of the Pension Plan equal to the difference between (a) and (b), where:

 

(a)  =  the amount of the monthly benefit payable to the Executive under the Pension Plan calculated on a single life annuity basis commencing at age 65, determined under the Pension Plan as in effect on the date of the Executive’s termination of employment with the Controlled Group but calculated as if (i) the Pension Plan did not contain the Code Limitations, and (ii) the definition of Annual Compensation under the Pension Plan included the Executive’s deferrals under the Mirror Savings Plan or its predecessor plan; and

 

(b)  =  the amount of the monthly benefit which would be payable to the Executive under the Pension Plan calculated on a single life annuity basis commencing at age 65, determined under the Pension Plan as in effect on the date of the Executive’s termination of employment with the Controlled Group.

 

As a consequence of the freezing of benefit accruals under Section 4 of the Pension Plan as of December 31, 2020, the formula in this Section 3.1(2) will be applied by determining an Executive’s Annual Compensation and the monthly benefit under Section 4 of the Pension Plan as of December 31, 2020 (or, if earlier, as of the date of the Executive’s termination of employment with the Controlled Group).

 

(3)           Cash Balance Mirror Pension Benefits.  The Administrator shall establish an “Excess Retirement Account” for each Executive who is accruing benefits under the cash balance formula described in Article 6 of the Pension Plan.  As of the end of each calendar year (or at such other time as a Contribution Credit is made to the Executive’s Retirement Account under the Pension Plan), the Administrator shall credit each Executive’s Excess Retirement Account under this Plan with an amount equal to the difference between (a) and (b) where:

 

(a)   =                 the amount that would have been credited to the Executive’s Retirement Account under the Pension Plan if (i) the Pension Plan did not contain the Code Limitations, and (ii) the definition of Annual Compensation under the Pension Plan included the Executive’s deferrals under the Mirror Savings Plan; and

 

(b)   =                 the amount which is actually credited to the Executive’s Retirement Account under the Pension Plan.

 

The Administrator shall also credit each Executive’s Excess Retirement Account with Interest Credits in accordance with the rules specified in the Pension Plan.

 

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As a consequence of the amendment of the accrual of benefits under Article 6 of the Pension Plan as of December 31, 2020, benefits under this Section 3.1(3) will accrue at the reduced 3% crediting rate for Annual Compensation paid after December 31, 2020.

 

(4)           Notwithstanding anything in this Section 3.1 to the contrary, in no event, will any Executive’s Mirror Pension Benefit be less than such Executive’s Grandfathered Mirror Pension Benefit.

 

Section 3.2            Time of Payment.

 

(1)           Grandfathered Mirror Pension Benefit.  The portion of an Executive’s vested Mirror Pension Benefit that is a Grandfathered Mirror Pension Benefit shall be paid or commence to be paid at the same time and under the same conditions as the benefits payable to the Executive under the Pension Plan.  Notwithstanding the foregoing, if payment at such time is prevented due to reasons outside of the Administrator’s control, the vested Mirror Pension Benefits shall commence as soon as practicable after the benefits commence under the Pension Plan, and the first payment hereunder shall include any Mirror Pension Benefits not paid as a result of the delay in payment.

 

(2)           Non-Grandfathered Mirror Pension Benefit.  The provisions of this Section 3.2(2) shall apply solely with respect to the portion of any Executive’s vested Mirror Pension Benefit that is a Non-Grandfathered Mirror Pension Benefit.

 

(a)              Standard Mirror Pension Benefits.  The Executive’s Standard Mirror Pension Benefit shall be paid or commence to be paid on the first day of the third month following the month in which occurs the later of the date on which the Executive (i) attains age 55 or (ii) Separates from Service, subject to Sections 3.2(2)(d), and 3.3(2)(d) (as applicable).  The amount of any such Standard Mirror Pension Benefit paid before the Executive’s attainment of age 62 shall be actuarially reduced using the Actuarial Factors, as in effect on the date of the Executive’s Separation from Service.

 

(b)              Cash Balance Mirror Pension Benefit.  The Executive’s Cash Balance Mirror Pension Benefit shall be paid or commence to be paid on the first day of the third month following the month in which Executive Separates from Service, subject to Sections 3.2(2)(d) and 3.3(2)(d) (as applicable).

 

(c)               Certain Transition Distributions to Terminated Executives.  Notwithstanding Section 3.2(2)(a) and 3.2(2)(b) and subject to Section 3.2(2)(d),

 

(i)            An Executive who Separated from Service after December 31, 2004 and before December 31, 2008 and has commenced payments of his Grandfathered Mirror Pension Benefits at any time before December 31, 2008, shall receive his Non-Grandfathered Mirror Pension Benefit, for which the Executive’s Mirror Pension Benefit is retroactively adjusted pursuant to Section 1.1 on January 1, 2009, in the same form and at the same time as the Executive’s Grandfathered benefit, in the same form and at the same time as the Executive’s Grandfathered benefit, subject to Section 3.2(2)(d).  Notwithstanding the foregoing, an Executive’s Cash Balance Benefit shall be paid on March 1, 2009, subject to Section 3.2(2)(d).

 

(ii)           An Executive who Separated from Service after December 31, 2004 and before December 31, 2008 and has not before December 31, 2008 commenced payments of his Grandfathered Mirror Pension Benefits shall receive his Non-

 

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Grandfathered Mirror Pension Benefits, for which the Executive’s Mirror Pension Benefit is retroactively adjusted pursuant to Section 1.1 on January 1, 2009, as follows, subject to Section 3.2(2)(d):

 

(A)          The Executive’s Standard Mirror Pension Benefit shall be paid to the Executive in a single lump sum amount on the later of March 1, 2009 or the date on which the Executive attains age 55.

 

(B)          The Executive’s Non-Grandfathered Cash Balance Mirror Pension Benefit credited to the Executive’s Excess Retirement Account under the Plan shall be paid in a single lump sum amount on March 1, 2009.

 

(d)              Payment Delay for Specified Employees.  Notwithstanding any provision of the Plan, payments to a Specified Employee shall be made or commence on the first day of the month coincident with or immediately following the latest of (i) the date specified in Section 3.2(2)(a), (b) or (c), (ii) the date specified in Section 3.3(2)(d)(i), if the Executive made an election pursuant to such section, or (iii) the date that is six (6) months after the Specified Employee’s Separation From Service; provided, however, that if the Executive dies before the date specified in (i), (ii) or (iii), the Executive’s benefit shall be paid or commence on the date specified in Section 4.2.  The first payment made to the Specified Employee following the 6-month delay shall include any Mirror Pension Benefit payments that were not made as a result of the delay in payment pursuant to this paragraph (d), with interest at an annual rate of five percent (5%).  Notwithstanding the foregoing, this paragraph (d) shall not apply to any Executive if on the date of his Separation from Service, the stock of the Company and Controlled Group members is not publicly traded on an established securities market (within the meaning of the 409A Guidance).

 

(e)               Delay of Payments Subject to Code Section 162(m).  The Company may delay the distribution of any amount otherwise required to be distributed under the Plan if, and to the extent that, the Company reasonably anticipates that the Company’s deduction with respect to such distribution otherwise would be limited or eliminated by application of Code Section 162(m).  In such event, (i) if any payment is delayed during any year on account of Code Section 162(m), then all payments that could be delayed on account of Code Section 162(m) during such year must also be delayed; (ii) such delayed payments must be paid either (A) in the first year in which the Company reasonably anticipates the payment to be deductible, or (B) the period beginning on the date of the Executive’s Separation From Service and ending on the later of the end of the Executive’s year of separation or the fifteenth (15th) day of the third month after such separation; and (iii) if payment is delayed to the date of Separation from Service with respect to an Executive who is a Specified Employee, such payment shall commence after such Executive’s Separation from Service on the date immediately following the six-month anniversary of the Separation from Service, or if earlier, on the date of the Executive’s death.

 

(f)               Actuarial Adjustment for Delay on Account of Election Under Section 3.3(2)(d)(i).  If an Executive’s election under Section 3.3(2)(d)(i) delays the commencement of the Executive’s Standard Mirror Pension Benefit portion of his or her Non-Grandfathered Mirror Pension beyond the later of the Executive’s Separation from Service or the date on which the Executive attains age 62, then such benefit will be actuarially increased using the Actuarial Factors for lump sum calculations, as in effect on the date the benefit payments were originally scheduled to be paid or commenced to be paid, provided, however, in no event will the interest rate exceed seven and one-half percent (71⁄2%).

 

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Section 3.3            Form of Payment of Mirror Pension Benefits.

 

(1)           Grandfathered Mirror Pension Benefit.  The provisions of this Section 3.3(1) shall apply solely with respect to the portion of an Executive’s vested Standard Mirror Pension Benefit that is a Grandfathered Mirror Pension Benefit.

 

(a)              In General.  The Standard Mirror Pension Benefit calculated in accordance with Section 3.1(2) shall be payable in the same form and for the same duration as the benefits payable to the Executive under the Pension Plan; provided, however, that if the form of payment of the Standard Mirror Pension Benefit selected by the Executive is not a single life annuity commencing at age 65, the amount of such Benefit shall be adjusted to an amount which results in a Benefit payable which is the Actuarial Equivalent of a single life annuity commencing at age 65.  An election by an Executive of a form of payment under the Pension Plan shall be deemed to be an election by such Executive of the form of his Standard Mirror Pension Benefit.  In the absence of an election by the Executive of the form of his Standard Mirror Pension Benefit under the Pension Plan, the form of Standard Mirror Pension Benefit for an unmarried Executive shall be a single life annuity commencing at age 65, and for a married Executive shall be a joint and 50% survivor benefit which is the Actuarial Equivalent of such single life annuity.

 

(b)              Lump Sum Election.

 

(i)            Notwithstanding the foregoing, an Executive may elect to receive the Standard Mirror Pension Benefit or to have his Death Beneficiary receive a Standard Mirror Pre-Retirement Pension Benefit in the form of a single lump sum payment by filing a notice in writing on a form provided by the Administrator, signed by the Executive and filed with the Administrator prior to the Executive’s termination of employment with the Controlled Group because of involuntary termination, death or Disability, or at least one (1) year prior to the Executive’s voluntary retirement or termination of employment.  Any such election may be changed at any time and from time to time without the consent of any existing Death Beneficiary or any other person other than, if applicable, his spouse, by filing a later signed written election with the Administrator; provided that any election made less than one (1) year prior to the Executive’s voluntary retirement or termination of employment shall not be valid.  An Executive’s election of a lump sum payment under this Subsection shall be controlling with respect to any payment of Standard Mirror Pre-Retirement Pension Benefits to his Death Beneficiary.  Notwithstanding the foregoing, an Executive shall be permitted to make an election to receive his Standard Mirror Pension Benefit in the form of a lump sum payment within the one (1) year period prior to his voluntary termination if (and only if) the amount of the Standard Mirror Pension Benefit payable to the Executive is reduced by ten percent (10%).

 

(ii)           The lump sum payment described in paragraph (b)(i) of this Subsection shall be calculated (A) by converting the Executive’s Standard Mirror Pension Benefit (calculated in accordance with the provisions of Section 3.1(2)) at the time of the commencement of such Benefit into a lump sum amount of equivalent actuarial value when computed using the Actuarial Factors for this purpose, and then applying the ten percent (10%) reduction, if applicable, or (B) by converting the Death Beneficiary’s Standard Mirror Pre-Retirement Pension Benefit (calculated in accordance with the provisions of Section 4.2(1))

 

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at the time of the commencement of such Benefit into a lump sum amount of equivalent actuarial value when computed using the Actuarial Factors for this purpose, and then applying the ten percent (10%) reduction, if applicable.

 

(iii)          Notwithstanding any provision of this Plan to the contrary, in the event the equivalent actuarial value of the Executive’s Standard Mirror Pension Benefit, when computed using the Actuarial Factors specified in Exhibit A for this purpose, does not exceed $25,000, such Benefit shall be paid in the form of a single lump sum payment.

 

(c)               Cash Balance Mirror Pension Benefits.  Notwithstanding any provision of the Plan to the contrary, a Cash Balance Mirror Pension Benefit calculated in accordance with Section 3.1(3) shall automatically be paid to the Executive in the form of a single lump sum payment in an amount equal to the balance in the Executive’s Excess Retirement Account as the date the payment is processed.

 

(2)           Non-Grandfathered Mirror Pension Benefits.  The provisions of this Section 3.3(2) shall apply solely with respect to the portion of an Executive’s vested Mirror Pension Benefit that is a Non-Grandfathered Mirror Pension Benefit.

 

(a)              Normal Form of Payment.  Unless an Executive makes an election pursuant to Section 3.3(2)(b) or (e), the Executive’s Non-Grandfathered Mirror Pension Benefit will be paid to the Executive in the form of annual installment payments payable over a period of ten (10) years, the amount of which is Actuarially Equivalent to the Mirror Pension Benefit calculated under Section 3.1.

 

(b)              Optional Forms of Payment.  In lieu of the normal form of payment, an Executive may make or change an election to receive his Non-Grandfathered Mirror Pension Benefit in one of the following Actuarially Equivalent optional forms of benefit:

 

(i)            A single life annuity payable monthly to the Executive during the Executive’s life and ending on the date of the Executive’s death.

 

(ii)           A reduced joint and survivor annuity payable monthly to the Executive during the Executive’s life, and after the Executive’s death, payable monthly to the Executive’s spouse who survives the Executive in the amount equal to 50%, 75% or 100% (as the Executive elects) of such reduced lifetime monthly amount.

 

(iii)          A reduced life and period certain annuity payable monthly to the Executive during the Executive’s life, with payment thereof guaranteed to be made for a period of five (5) or ten (10) years, as elected by the Executive, and, in the event of the Executive’s death before the end of such 5- or 10- year period, payable in the same reduced amount for the remainder of such 5- or 10- year period, to the Death Beneficiary designated by the Executive.

 

(iv)          Annual installment payments payable to the Executive over a period of five (5) or ten (10) years, as elected by the Executive.

 

(v)           A single lump sum payment.

 

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(c)               Mandatory Lump Sum.  Notwithstanding any provision of the Plan to the contrary, in the event that the present value of the Executive’s Non-Grandfathered Mirror Pension Benefit does not exceed $25,000 at the time of distribution, such Non-Grandfathered Mirror Pension Benefit shall be paid in the form of a single lump sum payment on the date of distribution determined under Section 3.2(2).

 

(d)              Election of Optional Form of Payment.  An election of an optional form of payment must be in writing (on a form provided by the Administrator) and must satisfy the following requirements:

 

(i)            If an Executive wishes to elect an optional form of payment under Section 3.3(2)(b) above (other than the normal form of payment) or, after December 31, 2008, wishes to change his election made under Section 3.3(2)(e) (other than an election change described in Section 3.3(2)(d)(ii)), the election must be filed with the Administrator at least twelve (12) months before the Executive’s Separation from Service.  The most recent election on file with the Administrator (that was filed at least twelve (12) months before the Executive’s Separation from Service and that remains on file with the Administrator as of the date of Separation from Service) shall be given effect and become irrevocable on the date of the Executive’s Separation from Service.  No election filed less than twelve (12) months before the Executive’s Separation from Service shall have any force or effect, except as provided in Section 3.3(2)(d)(ii).  The payment pursuant to an election made under this Section 3.3(2)(d)(i) shall be made or commence on the first day of the month coincident with or immediately following the fifth anniversary of the original commencement date specified in Section 3.2(2)(a) or (b) (as applicable).

 

(ii)           An Executive who elected, pursuant to Section 3.3(2)(d)(i) or 3.3(2)(e), a life annuity form of payment (within the meaning of the 409A Guidance) described in Section 3.3(2)(b)(i), (ii) or (iii), may, at any time before the date of Separation from Service, change that annuity form of payment to an Actuarially Equivalent life annuity form of payment, provided the commencement date for such annuity, as specified in, respectively, Section 3.3(2)(d)(i) or Section 3.3(2)(e), remains unchanged.

 

(e)               Transition Elections.  Notwithstanding any provision of the Plan, any Executive who is an active employee of the Company or a member of the Controlled Group during the election period designated by the Administrator, ending no later than December 31, 2008, may make an election to receive his Non-Grandfathered Mirror Pension Benefit in one of the optional forms specified in Section 3.3(2)(b), commencing on the date specified in Section 3.2(2)(a) or (b) (as applicable); provided, however, that such election shall not apply if the Executive Separates from Service on or before December 31, 2008 and is subject to the provision of Section 3.2(2)(c).  The transition election must be made in writing, on a form provided by the Administrator and filed with the Administrator within the designated transition election period.  The transition election made pursuant to this paragraph (e) may not cause any amount to be paid in 2008 if not otherwise payable and may not delay payment of any amount that is otherwise payable in 2008.

 

(f)               Coordination of Payment Elections with SERP.  If an Executive is also a participant in the SERP, the Executive’s Non-Grandfathered Mirror Pension Benefit and the Non-Grandfathered SERP Benefit will be paid in the same form and at the same time.  If an Executive makes an election of an optional payment form pursuant to Section 3.3(2)(b) of the Plan or Section

 

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3.4(2)(b) of the SERP, the most recent election filed with the Administrator under either this Plan or the SERP at least twelve (12) months before the Separation from Service (or, if applicable, at a date specified in paragraph (d)(ii) of this Subsection) that remains on file with the Administrator on the date of Separation from Service will govern the form and time of payment under the Plan.  In the event of conflicting election forms filed simultaneously under this Plan and the SERP, the election filed under the SERP shall govern.

 

Section 3.4            Death after Commencement of Non-Grandfathered Mirror Pension Benefits.  If an Executive dies after commencing payment of his Non-Grandfathered Mirror Pension Benefits under the Plan but before his entire Non-Grandfathered Mirror Pension Benefit is distributed, payments to the Executive’s Death Beneficiary (if any) will be made (a) in accordance with the elected optional form of payment described in Section 3.3(2)(b)(ii) or (iii) (if elected), or (b) ninety (90) days after the Executive’s death in the form of a single lump sum, calculated using the Actuarial Factors in effect on the date of distribution, if the Executive elected one of the optional forms of payment described in Section 3.3(2)(b)(iv).

 

Section 3.5            Adjustment to Annual Installment Payments Commencing Prior to January 1, 2011.  If payment of an Executive’s Non-Grandfathered Mirror Pension Benefit commenced after January 1, 2005 but prior to January 1, 2011 in the form of annual installment payments over a period of five (5) or ten (10) years, then

 

(1)           The Executive’s annual installment payments will be recalculated as of the original payment commencement date using the Plan’s Actuarial Factors for lump sum calculations and any increase in the amount of each such installment will be paid as follows:

 

(a)              The increase in the annual installments that were payable prior to January 1, 2011 will be paid in a single lump sum amount in the calendar quarter beginning January 1, 2011 and ending March 31, 2011; and

 

(b)              Each annual installment due on or after January 1, 2011 will be adjusted to include the increase resulting from the recalculation.

 

ARTICLE IV
 MIRROR PRE-RETIREMENT PENSION BENEFIT

 

Section 4.1            Eligibility.

 

(1)           Grandfathered Mirror Pre-Retirement Pension Benefits.  The Death Beneficiary of an Executive who dies after attaining eligibility for a pre-retirement death benefit under the Pension Plan, but prior to commencing to receive Mirror Pension Benefits hereunder shall be entitled to receive the Mirror Pre-Retirement Pension Benefits described in Section 4.2(1) in lieu of any other benefits described in the Plan.

 

(2)           Non-Grandfathered Mirror Pre-Retirement Pension Benefits.  The Death Beneficiary of an Executive who dies after becoming vested in his Mirror Pension Benefit but prior to commencing to receive Mirror Pension Benefits hereunder shall be entitled to receive the Mirror Pre-Retirement Pension Benefits described in Section 4.2(2) in lieu of any other benefits described in the Plan.

 

11

 

Section 4.2                                      Amount, Form and Timing of Mirror Pre-Retirement Pension Benefits.

 

(1)                                  Grandfathered Mirror Pension Benefits.  A Death Beneficiary who is eligible for a Mirror Pre-Retirement Pension Benefit hereunder shall receive the portion of such Mirror Pre-Retirement Pension Benefit that is based on the Executive’s Grandfathered Mirror Pension Benefit in accordance with this Subsection (1).

 

(a)                                            Cash Balance Mirror Pre-Retirement Pension Benefits.  A Death Beneficiary who is eligible for a Cash Balance Mirror Pre-Retirement Pension Benefit shall receive a Cash Balance Mirror Pre-Retirement Pension Benefit, payable at the same time as the pre-retirement death benefits and (if applicable) the optional death benefits described in the Pension Plan, as determined by the Administrator.  The Cash Balance Mirror Pre-Retirement Pension Benefit shall automatically be paid in the form of a lump sum payment in an amount equal to the balance in the Executive’s Excess Retirement Account on the date the payment is processed.

 

(b)                                           Standard Mirror Pre-Retirement Pension Benefits.  A Death Beneficiary who is eligible for a Standard Mirror Pre-Retirement Pension Benefit shall receive a Standard Mirror Pre-Retirement Pension Benefit based on the Executive’s Standard Mirror Pension Benefit hereunder.  The Standard Mirror Pre-Retirement Pension Benefit shall be calculated in accordance with, and payable at the same time and (except as provided in Section 3.3(l)(b)) in the same manner as, the pre-retirement death benefits and (if applicable) the optional death benefits described in the Pension Plan, as determined by the Administrator.

 

(2)                                  Non-Grandfathered Mirror Pre-Retirement Pension Benefits.  A Death Beneficiary who is eligible for a Mirror Pre-Retirement Pension Benefit hereunder shall receive the portion of such Mirror Pre-Retirement Pension Benefit that is based on the Executive’s vested Non-Grandfathered Mirror Pension Benefit as follows:

 

(a)                                            Non-Grandfathered Cash Balance Mirror Pre-Retirement Pension Benefits.  A Death Beneficiary who is eligible for a Non-Grandfathered Cash Balance Mirror Pre-Retirement Pension Benefit shall receive such benefit in the form of a lump sum payment in an amount equal to the portion of the balance in the Executive’s Excess Retirement Account attributable to the Non-Grandfathered Mirror Pension Benefit on the date the payment is processed.  The Non-Grandfathered Cash Balance Mirror Pre-Retirement Pension Benefit shall be paid ninety (90) days after the Executive’s death.

 

(b)                                           Non-Grandfathered Standard Mirror Pre-Retirement Pension Benefits.

 

(i)                                     If an Executive (A) is not married on the date of his death, (B) has been married for less than one year prior to his death and designates a Death Beneficiary other than his spouse, or (C) has been married for at least one year prior to his death and the Executive’s spouse consents to the Executive’s designation of a Death Beneficiary other than the spouse, the Executive’s Death Beneficiary shall receive his benefit in an amount Actuarially Equivalent to the survivor benefit determined as if the Executive had Separated From Service on the earlier of the date of his actual Separation from Service or the date of his death, elected to receive his Non-Grandfathered Mirror Pension Benefit in the form of a monthly life annuity with a) a five (5) year certain survivor benefit if the Executive Separated from Service before attaining age 55, or b) a ten (10) year certain survivor benefit, if the Executive had attained age 55 while an Employee, had survived to age 55 and had died immediately following his

 

12

 

payment commencement date.  The Non-Grandfathered Standard Mirror Pre-Retirement Pension Benefit shall be paid in the form of an Actuarially Equivalent single lump sum payment on the first day of the third month after the later of the date on which the Executive would have attained age 55 or the date of the Executive’s death.

 

(ii)                                  If an Executive is married on the date of his death and paragraph (b)(i) does not apply to him, then, the Executive’s surviving spouse shall receive the Non-Grandfathered Standard Mirror Pre-Retirement Pension Benefit as follows:

 

(A)                              If the Executive Separated from Service before attaining age 55, the Executive’s spouse shall receive a reduced annuity payable monthly to the Executive’s spouse during his life, commencing on the first day of the third month following the later of the date on which the Executive would have attained age 55 or the date of the Executive’s death and ending on the date of the Executive’s spouse’s death, calculated as if the had Executive Separated from Service on the earlier of the date of the Executive’s death or actual Separation from Service, elected a joint and 50% survivor annuity form of payment described in Section 3.3(2)(b)(ii), survived to age 55 and died on the date following the payment commencement date.

 

(B)                                If the Executive had attained age 55 while an Employee, the Executive’s spouse shall receive a reduced annuity payable monthly to the Executive’s spouse during his life, commencing on the first day of the of the third month after the date of the Executive’s death, calculated as if the Executive had died immediately after commencing payments in the form of an immediate joint and 100% survivor annuity form of payment described in Section 3,3(2)(b)(ii).

 

(C)                                Notwithstanding the foregoing, if the present value of the Non-Grandfathered Standard Mirror Pre-Retirement Pension Benefit under this paragraph (b)(ii) does not exceed $25,000, such benefit will be distributed to the Executive’s Death Beneficiary in the form of an Actuarially Equivalent single lump sum on the first day of the third month following the later of the date on which the Executive would have attained age 55 or the date of the Executive’s death.

 

ARTICLE V

VESTING

 

Section 5.1                                      Vesting.

 

(1)                                  In General.  Except as provided in Subsection (2) and (3) of this Section, an Executive or Death Beneficiary shall become vested in the Mirror Pension Plan Benefits in accordance with the vesting provisions of the Pension Plan.

 

(2)                                  Forfeiture Provision.

 

(a)                                            Notwithstanding the provisions of Subsection (3) hereof, but subject to the requirements of paragraph (b) of this Subsection, the Employers shall be relieved of any obligation

 

13

 

to pay or provide any future Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits under this Plan and shall be entitled to recover amounts already distributed if, without the written consent of the Company, the Executive, whether before or after termination with the Controlled Group (i) participates in dishonesty, fraud, misrepresentation, embezzlement or deliberate injury or attempted injury, in each case related to the Company or a Controlled Group member, (ii) commits any unlawful or criminal activity of a serious nature, (iii) commits any intentional and deliberate breach of a duty or duties that, individually or in the aggregate, are material in relation to the Executive’s overall duties or (iv) materially breaches any confidentiality or noncompete agreement entered into with the Company or a Controlled Group member.  The Employers shall have the burden of proving that one of the foregoing events have occurred.

 

(b)                                           Notwithstanding the foregoing, an Executive shall not forfeit any portion of his Mirror Pension Benefits or Mirror Pre-Retirement Pension Benefits under paragraph (a) of this Subsection unless (i) the Executive receives reasonable notice in writing setting forth the grounds for the forfeiture, (ii) if requested by the Executive, the Executive (and/or the Executive’s counsel or other representative) is granted a hearing before the full Board of Directors of the Company (the “Board”) and (iii) a majority of the members of the full Board determine that the Executive violated one or more of the provisions of paragraph (a) of this Subsection.

 

(3)                                  Acceleration of Vesting.  Notwithstanding the provisions of Subsection (1) hereof, the Mirror Pension Benefits of the Executives (a) who are employed by the Controlled Group on the date of a Change in Control or (b) whose employment with the Company was terminated prior to a Change in Control but the Executive reasonably demonstrates that the termination occurred at the request of a third party who has taken steps reasonably calculated to effect the Change in Control, shall become immediately 100% vested upon the occurrence of such Change in Control.

 

ARTICLE VI

AMENDMENT AND TERMINATION

 

Section 6.1                                      Effect of Amendment and Termination.  Notwithstanding any provision of the Plan (including the Administrative Document) to the contrary, no amendment or termination of the Plan shall, without the consent of the Executive (or, in the case of his death, his Death Beneficiary), adversely affect the vested Mirror Pension Benefit or vested Mirror Pre-Retirement Pension Benefit under the Plan of any Executive or Death Beneficiary as such Benefit exists on the date of such amendment or termination; provided, however, that this limitation shall not apply to the extent deemed necessary by the Company to comply with the requirements of the 409A Guidance.

 

Section 6.2                                      Limitation on Payments and Benefits.  Notwithstanding any provision of this Plan to the contrary, if any amount or benefit to be paid or provided under this Plan or any other plan or agreement between the Executive and a Controlled Group member would be an “Excess Parachute Payment,” within the meaning of Code Section 280G, or any successor provision thereto, but for the application of this sentence, then the payments and benefits to be paid or provided under this Plan shall be reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of any such payment or benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however, that the foregoing reduction shall be made only if and to the extent that such reduction would result in an increase in the aggregate payment and benefits to be provided to the Executive, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Code Section 4999, or any successor provision thereto, any tax imposed by any comparable provision of state law, and any applicable federal, state and local income taxes).  If requested by the Executive or the Company, the determination of whether any reduction in such payments or benefits to be provided under this Plan or otherwise is required pursuant to the preceding sentence shall be made by the Company’s independent accountants, at the expense of the

 

14

 

Company, and the determination of the Company’s independent accountants shall be final and binding on all persons.  The fact that the Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 6.2 shall not of itself limit or otherwise affect any other rights of the Executive pursuant to this Plan.  The Executive’s benefit will be reduced only to the extent that the reduction in any cash payments due to the Executive and in the Executive’s SERP Benefits is insufficient to reduce or eliminate Excess Parachute Payment as described in this Section.  The Executive’s Non-Grandfathered Mirror Pension Benefit (if any) shall be reduced if required by this section before any Grandfathered Mirror Pension Benefit is reduced.

 

Section 6.3                                      Establishment of Trust Fund.

 

(1)                                  In General.  The Plan is intended to be an unfunded, non-qualified retirement plan.  However, the Company may enter into a trust agreement with a trustee to establish a trust fund (the “Trust Fund”) and to transfer assets thereto (or cause assets to be transferred thereto), subject to the claims of the creditors of the Employers, pursuant to which some or all of the Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits shall be paid.  Payments from the Trust Fund shall discharge the Employers’ obligation to make payments under the Plan to the extent that Trust Fund assets are used to satisfy such obligations.

 

(2)                                  Upon a Change in Control.

 

(a)                                            Within thirty (30) business days of the occurrence of a Change in Control, to the extent it has not already done so, the Company shall be required to establish an irrevocable Trust Fund for the purpose of paying Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits.  Except as described in the following sentence, all contributions to the Trust Fund shall be irrevocable and the Company shall not have the right to direct the trustee to return to the Employers, or divert to others, any of the assets of the Trust Fund until after satisfaction of all liabilities to all of the Executives and their Death Beneficiaries under the Plan.  Any assets deposited in the Trust Fund shall be subject to the claims of the creditors of the Employers and any excess assets remaining in the Trust Fund after satisfaction of all liabilities shall revert to the Company.

 

(b)                                           In addition to the requirements described in paragraph (a) above, the Trust Fund which becomes effective on the Change in Control shall be subject to the following additional requirements:

 

(i)                                     the Trustee of the Trust Fund shall be a third party corporate or institutional trustee;

 

(ii)                                  the Trust Fund shall satisfy the requirements of a grantor trust under the Code; and

 

(iii)                               the Trust Fund shall automatically terminate (A) in the event that it is determined by a final decision of the United States Department of Labor (or, if an appeal is taken therefrom, by a court of competent jurisdiction) that by reason of the creation of, and a transfer of assets to, the Trust, the Trust is considered “funded” for purposes of Title I of ERISA or (B) in the event that it is determined by a final decision of the Internal Revenue Service (or, if an appeal is taken therefrom, by a court of competent jurisdiction) that (I) a transfer of assets to the Trust is considered a transfer of property for purposes of Code Section 83 or any successor provision thereto, or (II) pursuant to Code Section 451 or 409A or any

 

15

 

successor provision thereto, amounts are includable as compensation in the gross income of a Trust Fund beneficiary in a taxable year that is prior to the taxable year or years in which such amounts would otherwise be actually distributed or made available to such beneficiary by the trustee.  Upon such termination of the Trust, all of the assets in the Trust Fund attributable to the accrued Mirror Pension Plan Benefits shall be immediately distributed to the Executives, but only to the extent and in the manner permitted by the 409A Guidance, and the remaining assets, if any, shall revert to the Company.

 

(c)                                            Within five (5) days following establishment of the Trust Fund, the Company shall transfer (or cause the Employers to transfer) to the trustee of such Trust Fund an amount equal to the equivalent actuarial present value of the Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits which have been accrued as of the date of the Change in Control on behalf of all of the Executives under the Plan (using the Actuarial Factors specified in Exhibit A for this purpose).

 

(d)                                           In January of each year following a funding of the Trust Fund pursuant to paragraph (c) above, the Company shall cause to be deposited in the Trust Fund such additional amount (if any) by which the aggregate equivalent actuarial present value (determined using the Actuarial Factors specified in Exhibit A) of the sum of the Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits for all Executives under the Plan as of December 31 of the preceding year exceeds the fair market value of the assets of the Trust Fund as of such date.

 

(e)                                            Notwithstanding the foregoing, an Employer shall not be required to make any contributions to the Trust Fund if the Employer is insolvent at the time such contribution is required.

 

(f)                                              The Administrator shall notify the trustee of the amount of Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits to be paid to or on behalf of the Executive from the Trust Fund and shall assist the trustee in making distribution thereof in accordance with the terms of the Plan.

 

(g)                                           Notwithstanding any provision of the Plan or the Administrative Document to the contrary, the provisions of this Section 6.3(2) hereof (i) may not be amended following a Change in Control and (ii) prior to a Change in Control may only be amended (A) with the written consent of each of the Executives or (B) if the effective date of such Amendment is at least two (2) years following the date the Executives were given written notice of the adoption of such amendment; provided, however, that this limitation shall not apply to any amendment that is deemed necessary or reasonable (as determined in the sole discretion of the Committee) to comply with the requirements of the 409A Guidance.

 

16

 

IN WITNESS WHEREOF, Ecolab Inc. has executed this Mirror Pension Plan and has caused its corporate seal to be affixed this 21st day of December, 2011.

 

	
 
    	
 
    	
ECOLAB   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/Steven   L. Fritze
    
	
 
    	
 
    	
 
    	
Steven   L. Fritze
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    
	
(Seal)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/James   J. Seifert
    	
 
    	
 
    	
 
    
	
 
    	
James   J. Seifert
    	
 
    	
 
    	
 
    
	
 
    	
General   Counsel and Secretary
    	
 
    	
 
    	
 
    

 

17

 

EXHIBIT A

 

ACTUARIAL ASSUMPTIONS

FOR STANDARD MIRROR PENSION BENEFITS

AND STANDARD MIRROR PRE-RETIREMENT PENSION BENEFITS

 

 

	
1.
    	
 
    	
Interest   Rate:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A.  For   lump sum
    	
 
    	
The   interest rate will be 125% of the 10-year Treasury rate for the month of   October preceding the Plan Year (i.e., January 1) (1) in which   the retirement or other termination of employment is effective if the Mirror   Pension Benefit is to commence immediately following such retirement or   termination of employment or (2) in which the distribution becomes   payable if the payment is to be deferred.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
B.  Annual   Installments
    	
 
    	
Same   as for lump sum.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
C.  General   Actuarial Equivalence
    	
 
    	
7.5%   except as provided in item 4 below.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Mortality:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A.  For   Lump Sum
    	
 
    	
Revenue   Ruling 2001-62 prescribed table. (The basis is the 1994 unisex pension   tables)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
B.  Annual   Installments
    	
 
    	
Same   as for lump sum.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
C.  General   Actuarial Equivalence
    	
 
    	
1971   Group Annuity Table
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Annuity   Values Weighted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A.  For   Lump Sum
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
B.  Annual   Installments
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
C.  General   Actuarial Equivalence
    	
 
    	
75%   male, 25% female
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Early   Commencement
    	
 
    	
The   Mirror Pension Benefit shall be reduced by one two hundred eightieth   (1/280th) for each month that the date of the commencement of payment precedes   the date on which the Executive will attain age sixty-two (62). If the   Executive’s Ecolab Pension Plan benefit is affected by Section 415 of   the Code, the Administrator shall make such further adjustments to the Mirror   Pension Benefit as the Administrator, in his or her sole discretion, deems   appropriate to ensure that the total early retirement benefit from the Ecolab   Pension Plan and the Ecolab Mirror Pension Plan equals the early retirement   benefit the Executive would have been entitled to under the Ecolab Pension   Plan without regard to the Code Limitations and non-qualified deferrals.
    

 

 

	
 
    	
 
    	
 
    	
 
    	
If   payment is in the form of a single lump sum, the lump sum amount shall be   based on the lump sum interest rate defined in item 1 above, the mortality   assumptions specified in items 2 and 3 above, and the “early retirement   benefit” immediate annuity amount as determined under this item 4.
    

 

ACTUARIAL ASSUMPTIONS

FOR CASH BALANCE MIRROR PENSION BENEFITS

AND CASH BALANCE MIRROR PRE-RETIREMENT PENSION BENEFITS

 

	
1.
    	
 
    	
Interest   Rate:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A.  Convert   Retirement Account

into   an Annuity
    	
 
    	
The   applicable interest rate(s), within the meaning of Code section 417(e), as   specified by the Commissioner of Internal Revenue for the second full   calendar month preceding the first day of the Plan Year during which the   distribution is made. (Used to determine an actuarially equivalent amount   payable immediately as a single-life annuity benefit.)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
B.  Convert   Retirement Accountinto Annual Installments
    	
 
    	
The   interest rate will be 125% of the 10-year Treasury rate for the month of   October preceding the Plan Year (i.e., January 1) (1) in which   the retirement or other termination of employment is effective if the Mirror   Pension Benefit is to commence immediately following such retirement or   termination of employment or (2) in which the distribution becomes   payable if the payment is to be deferred.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
C.  General   Actuarial Equivalence
    	
 
    	
7.5%.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Mortality:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
A.  Convert   Retirement Account

into   an Annuity
    	
 
    	
The   applicable mortality table, within the meaning of Code section 417(e), in   effect as of the date of distribution as prescribed by the Commissioner of   Internal Revenue (described in section 807(d)(5)(A) of the Internal   Revenue Code). (Used to determine an actuarially equivalent amount payable   immediately as a single-life annuity benefit.)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
B.  Convert   Retirement Accountinto Annual Installments
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
C.  General   Actuarial Equivalence
    	
 
    	
Revenue   Ruling 2001-62 prescribed table. (The basis is the 1994 unisex pension   tables.)
    

 

2

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
ARTICLE I PREFACE
    	
2
    
	
Section 1.1
    	
Effective Date
    	
2
    
	
Section 1.2
    	
Purpose of the Plan
    	
2
    
	
Section 1.3
    	
Administrative Document
    	
2
    
	
Section 1.4
    	
American Jobs Creation Act of 2004 (AJCA)
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE II DEFINITIONS
    	
3
    
	
Section 2.1
    	
“Actuarial Equivalent” or “Actuarially Equivalent.”
    	
3
    
	
Section 2.2
    	
“Actuarial Factors”
    	
3
    
	
Section 2.3
    	
“Code Limitations”
    	
3
    
	
Section 2.4
    	
“Death Beneficiary”
    	
3
    
	
Section 2.5
    	
“Disability”
    	
3
    
	
Section 2.6
    	
“Executive”
    	
3
    
	
Section 2.7
    	
“Grandfathered Mirror Pension Benefit”
    	
3
    
	
Section 2.8
    	
“Mirror Savings Plan”
    	
4
    
	
Section 2.9
    	
“Mirror Pension Benefit”
    	
4
    
	
Section 2.10
    	
“Mirror Pre-Retirement Pension Benefit”
    	
4
    
	
Section 2.11
    	
“Non-Grandfathered Mirror Pension Benefit”
    	
4
    
	
Section 2.12
    	
“Plan”
    	
4
    
	
Section 2.13
    	
“Separation from Service” or to “Separate from Service”
    	
4
    
	
Section 2.14
    	
“SERP”
    	
4
    
	
Section 2.15
    	
“SERP Benefit”
    	
4
    
	
Section 2.16
    	
“Specified Employee”
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE III MIRROR PENSION   BENEFITS
    	
5
    
	
Section 3.1
    	
Amount of Mirror Pension Benefits
    	
5
    
	
Section 3.2
    	
Time of Payment
    	
6
    
	
Section 3.3
    	
Form of Payment of Mirror Pension Benefits
    	
8
    
	
Section 3.4
    	
Death after Commencement of Non-Grandfathered Mirror   Pension Benefits
    	
11
    
	
Section 3.5
    	
Adjustment to Annual Installment Payments Commencing Prior   to January 1, 2011 
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE IV MIRROR   PRE-RETIREMENT PENSION BENEFIT
    	
11
    
	
Section 4.1
    	
Eligibility
    	
11
    

 

i

 

	
Section 4.2
    	
Amount, Form and Timing of Mirror Pre-Retirement   Pension Benefits
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE V VESTING
    	
13
    
	
Section 5.1
    	
Vesting
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE VI AMENDMENT AND   TERMINATION
    	
14
    
	
Section 6.1
    	
Effect of Amendment and Termination
    	
14
    
	
Section 6.2
    	
Limitation on Payments and Benefits
    	
14
    
	
Section 6.3
    	
Establishment of Trust Fund
    	
15
    

 

iiEXHIBIT (10.16)

 

ECOLAB INC.

ADMINISTRATIVE DOCUMENT FOR NON-QUALIFIED BENEFIT PLANS

(As Amended and Restated Effective as of January 1, 2011)

 

Ecolab Inc. (the “Company”) hereby amends and completely restates this Administrative Document (the “Administrative Document”) which provides for the administration of the non-qualified benefit plans listed on Exhibit A hereto (collectively, the “Plans” and individually, a “Plan”) which have been established by the Company for purposes of providing benefits to certain management and highly compensated employees who perform management and professional functions for the Company and certain related entities.  This Administrative Document is incorporated by reference in and is a part of each of the Plans.

 

ARTICLE I

DEFINITIONS

 

Words and phrases used in this Administrative Document and in the Plans with initial capital letters which are defined in the Pension Plan are used in this Administrative Document and in the Plans as so defined, unless otherwise specifically defined herein or in the Plans or the context clearly indicates otherwise.  Words and phrases used in this Administrative Document with initial capital letters which are defined in the Plans are used herein as so defined.  The following words and phrases when used in this Administrative Document or in the Plans with initial capital letters shall have the following respective meanings, unless the context clearly indicates otherwise or a particular Plan provides differently with respect to its own provisions:

 

Section 1.1                                    “Administrator” shall mean the person authorized to perform the administrative duties under the Plans pursuant to Section 4.1.

 

Section 1.2                                    “Annual Compensation” for a Plan Year shall mean the sum of (1) the Executive’s base salary, commission and annual incentive bonuses paid in cash (but not long term incentive bonuses) which are reportable by the Employer for federal income tax purposes as “wages” for such Plan Year, (2) any salary reductions caused as a result of participation in an Employer-sponsored plan which is governed by Section 401(k), 132(f)(4) or 125 of the Code, and (3) any salary reductions caused as a result of participation in the Ecolab Mirror Savings Plan or its predecessor plan, and (4) for periods prior to January 1, 2011, severance pay (not in excess of 52 weeks’ duration effective as of January 1, 2002) which will be deemed to have been paid in regular, payroll dates at the Executive’s regular rate of compensation in effect prior to his termination of employment even if such severance pay is, in fact, paid in a lump sum or other accelerated manner.

 

Section 1.3                                    “Benefit” shall mean a Mirror Pension Benefit, a Mirror Pre-Retirement Pension Benefit, a SERP Benefit, a SERP Pre-Retirement Benefit, a Mirror Savings Benefit, an Executive Death Benefit or an Executive Disability Benefit, as applicable.

 

Section 1.4                                    “Change in Control.”  A “Change in Control “ shall be deemed to have occurred if the event set forth in any one of the following Subsections shall have occurred:

 

 

(1)                                 any “person” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under any employee benefit plan of the Company, or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes, including pursuant to a tender or exchange offer for shares of the common stock of the Company (“Common Stock”) pursuant to which purchases are made, the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities, other than in a transaction arranged or approved by the Board of Directors of the Company (the “Board”) prior to its occurrence; provided, however, that if any such person will become the beneficial owner, directly or indirectly, of securities of the Company representing 34% or more of the combined voting power of the Company’s then outstanding securities, a Change in Control will be deemed to occur whether or not any or all of such beneficial ownership is obtained in a transaction arranged or approved by the Board prior to its occurrence, and other than in a transaction in which such person will have executed a written agreement with the Company (and approved by the Board) on or prior to the date on which such person becomes the beneficial owner of 25% or more of the combined voting power of the Company’s then outstanding securities, which agreement imposes one or more limitations on the amount of such person’s beneficial ownership of shares of Common Stock, if, and so long as, such agreement (or any amendment thereto approved by the Board provided that no such amendment will cure any prior breach of such agreement or any amendment thereto) continues to be binding on such person and such person is in compliance (as determined by the Board in its sole discretion) with the terms of such agreement (including such amendment); provided, however that if any such person will become the beneficial owner, directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities, a Change in Control will be deemed to occur whether or not such beneficial ownership was held in compliance with such a binding agreement, and provided further that the provisions if this Subsection (1) shall not be applicable to a transaction in which a corporation becomes the owner of all the Company’s outstanding securities in a transaction which complies with the provisions of Subsection (3) of this Section (e.g., a reverse triangular merger); or

 

(2)                                 during any thirty-six consecutive calendar months, individuals who constitute the Board on the first day of such period or any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest including, but not limited to, a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who were either directors on the first day of such period, or whose appointment, election or nomination for election was previously so approved or recommended, shall cease for any reason to constitute at least a majority thereof; or

 

(3)                                 there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent

 

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thereof) more than 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, and in which no “person” (as defined under Subsection (1) above) acquires 50% or more of the combined voting power of the securities of the Company or such surviving entity or parent thereof outstanding immediately after such merger or consolidation; or

 

(4)                                 the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, more than 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

 

Section 1.5                                    “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

Section 1.6                                    “Company” shall mean Ecolab Inc., a Delaware corporation or its successor(s).

 

Section 1.7                                    “Controlled Group” shall mean the Company and any other corporation or entity, the employees of which, together with employees of the Company, are required by subsection (b) or (c) of Code Section 414 to be treated as if they were employed by a single employer.  For purposes of determining whether a “Separation from Service” has occurred, members of the Controlled group will be identified in accordance with Code Section 414(b) or (c), except that in applying Code Section 1563(a)(1), (2), and (3) for purposes of Code Section 414(b) or in applying Treas. Reg. §1.414(c)-2 for purposes of Code Section 414(c), the language “at least 50 percent” shall be used instead of the language “at least 80 percent” each place it appears in such Code and regulations sections.

 

Section 1.8                                    “Employee” shall mean any person who is designated by an Employer as a common-law employee and who is employed on a full-time or substantially full-time basis.

 

Section 1.9                                    “Employer” shall mean the Company and any other member of the Controlled Group that adopts or has adopted one or more of the Plans pursuant to Section 6.3.

 

Section 1.10                             “409A Guidance” means Section 409A of the Code and proposed, temporary or final regulations or any other guidance issued thereunder.

 

Section 1.11                             “Pension Plan” shall mean the Ecolab Pension Plan, as such plan may be amended from time to time.

 

Section 1.12                             “Plans” shall mean those non-qualified benefit plans listed on Exhibit A hereto, as they may be amended from time to time.

 

Section 1.13                             “Plan Year” shall mean a calendar year.

 

Section 1.14                             “Separation from Service” or to “Separate from Service” shall mean any termination of employment with the Controlled Group due to retirement, death, disability or

 

3

 

other reason; provided, however, that no Separation from Service is deemed to occur while an Employee (1) is on military leave, sick leave, or other bona fide leave of absence that does not exceed six (6) months (or, in the case of disability, twelve (12) months), or if longer, the period during which the Employee’s right to reemployment with the Controlled Group is provided either by statute or by contract, or (2) continues to perform services for the Controlled Group (whether as an employee or as an independent contractor) at an annual rate of fifty percent (50%) or more of the average level of services performed over the immediately preceding 36-month period (or the full period in which the Employee provided services if the Employee has been providing services for less than 36 months).  For purposes of this Section, “disability” shall mean any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the Employee to be unable to perform the duties of his or her position of employment or any substantially similar position of employment.  Whether an Employee has incurred a Separation from Service shall be determined in accordance with the 409A Guidance.

 

Section 1.15                             “Specified Employee” shall have the meaning set forth in Section 6.8.

 

ARTICLE II

PAYMENT OF BENEFITS

 

Section 2.1                                    Special Offset Provision.  Notwithstanding any provision of the Plans to the contrary, if the Administrator (in his or her sole discretion) determines that an Executive or Death Beneficiary is indebted to the Controlled Group at the time of a Benefit payment, the Administrator (in his or her sole discretion) may reduce any such Benefit by the amount of the indebtedness, provided, however, that such reduction does not exceed $5,000 in any Plan Year and the reduction is made at the same time and in the same amount as the debt otherwise would have been due from the Executive.  An election by the Administrator not to reduce any such Benefit shall not constitute a waiver of the Controlled Group’s claim for such indebtedness.

 

Section 2.2                                    Withholding/Taxes.  To the extent required by applicable law, the Company shall withhold (or cause to be withheld) from the Benefit payments any taxes required to be withheld by any federal, state or local government.

 

Section 2.3                                    Adjustments.  Notwithstanding any provision of the Plans to the contrary, if an Executive or Death Beneficiary receives Benefits for any period that exceed the aggregate Benefits properly payable for such period, the Administrator (in his or her sole discretion) may, to the extent permitted by the 409A Guidance, make any adjustment he or she deems advisable to future Benefits due to the Executive or Death Beneficiary under the Plans until the aggregate amount of such adjustments equals the aggregate amount of the excess Benefits paid.  The provisions of this Section shall not be construed to provide the exclusive means of recovering excess payments to an Executive or Death Beneficiary, and the Administrator may take such other action as he or she deems advisable to recover the amount of excess Benefits that were paid to the Executive or Death Beneficiary.

 

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Section 2.4                                    Death Beneficiary Designations.

 

(1)                                 Absence of Designation.  If the Executive fails to designate a Death Beneficiary under the Plans, or at any other time when there is no existing Death Beneficiary designated by the Executive, the Executive’s Death Beneficiary shall be his surviving spouse or, if none, his estate.

 

(2)                                 Ambiguous Death Beneficiary Designation.  In the event that the most recent Death Beneficiary designation filed prior to the Executive’s death is ambiguous or incapable of reasonable construction, the Administrator may (in his or her sole discretion) (a) construe such designation in such manner as the Administrator deems closest to the Executive’s intent, (b) determine that such designation is void and distribute the Benefits as if the Executive had not filed any designation, or (c) institute proceedings in a court of competent jurisdiction for construction of such designation and charge any expenses incurred in such proceedings, including reasonable attorney’s fees, against the Executive’s Benefits.  Notwithstanding the foregoing, in the event that any benefits under the Plans are provided by insurance contracts which are owned by the Executive and under which the Executives are required to designate a Death Beneficiary, the terms of such insurance contracts shall govern Death Beneficiary designations with respect to such Benefits.

 

Section 2.5                                    Protective Provisions.  Notwithstanding any provision of the Plans to the contrary, as a condition to receiving any Benefit under any Plan, the Executive and, where applicable, the Death Beneficiary, shall be required to cooperate with the Company by furnishing any and all information requested by the Company in order to facilitate the payment of the Benefit and taking any other action(s) as may be requested by the Company.  If an Executive or Death Beneficiary refuses to cooperate, no Benefits shall be payable under the Plans and neither the Company nor the Executive’s Employer shall have any further obligation to the Executive or his Death Beneficiary under the Plans.

 

Section 2.6                                    Liability for Payment.

 

(1)                                 The Employer by which the Executive was most recently employed at the time of his termination of employment with the Controlled Group shall pay the Benefits (or cause the Benefits to be paid) to the Executive or his Death Beneficiary under the Plans.  In the event that an executive transfers employment from one Employer to another, the Executive’s Benefits (and the underlying assets and liabilities related thereto) shall automatically be transferred from the Executive’s former Employer to the Executive’s new Employer.

 

(2)                                 Notwithstanding subsection (1) above, the Company may (but shall not be required to) guarantee some or all of the obligations of one or more Employers under any one or all of the Plans, with respect to one or more Executives or Death Beneficiaries, to the extent determined by the Company in its sole and absolute discretion.

 

(3)                                 The Company hereby guarantees all of the Employer obligations of Ecolab USA Inc. (formerly named Ecolab Finance Inc.) under all of the Plans, with respect to Executives or Death Beneficiaries.

 

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ARTICLE III

FUNDING

 

Section 3.1                                    Obligation of Employers.

 

(1)                                 The Plans are designed to be unfunded, nonqualified plans and the entire cost of the Plans shall be paid from the general assets of the Employers.  Notwithstanding the foregoing, the Employers may establish one or more trusts pursuant to an agreement with a trustee under which some or all of the Benefits under the Plans shall be paid or the Employers may otherwise purchase insurance for the purpose of providing Benefits under the Plans.  In furtherance of, but without limiting, the foregoing, an Employer may, in its sole discretion, satisfy its obligation to provide Executive Death Benefits or Executive Disability Benefits by delivering to the Executive an insurance contract which provides substantially the same benefits.

 

(2)                                 Any payment by a trustee pursuant to a trust agreement of Benefits payable pursuant to a Plan shall, to the extent thereof, discharge an Employer’s obligation to pay Benefits thereunder.

 

Section 3.2                                    Limitation on Rights of Executives and Death Beneficiaries - No Lien.  Nothing contained in the Plans shall be deemed to create a lien in favor of any Executive or Death Beneficiary on any trust account or on any assets of the Employers.  The Employers shall have no obligation to purchase any assets that do not remain subject to the claims of the creditors of the Employers for use in connection with the Plans.  Any assets contributed to a trust shall remain subject to the claims of the Employers’ creditors.  No Executive, Death Beneficiary or any other person shall have any preferred claim on, or any beneficial ownership interest in, any assets of the Employers prior to the time that such assets are paid to the Executive or Death Beneficiary as provided in the Plans.  Each Executive and Death Beneficiary shall have the status of a general unsecured creditor of the Employers and, except as provided in the preceding sentence, shall have no right to, prior claim to, or security interest in, any assets of the Employers or any trust account.  No liability for the payment of benefits under the Plans shall be imposed upon any officer, director, employee, or stockholder of an Employer.

 

ARTICLE IV

ADMINISTRATION

 

Section 4.1                                    Responsibility for Administration.  The Company shall be responsible for the general administration of the Plans and for carrying out the provisions thereof.  The Vice President - Human Resources of the Company shall perform the duties of the Administrator on behalf of the Company.  Such Vice President may, from time to time, delegate all or part of the administrative powers, duties and authorities delegated to him or her under the Plans to such person or persons, office or committee as he or she shall select.  Any such delegation shall be in writing and will be terminable upon such notice as the Vice President - Human Resources deems reasonable under the circumstances.

 

Section 4.2                                    Authority/Duties.  The Administrator shall have the sole and absolute discretion to interpret the provisions of the Plans (including, without limitation, by supplying omissions from, and correcting deficiencies in, or resolving inconsistencies or ambiguities in, the

 

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language of the Plans) and, except as otherwise provided in the Plans, shall determine the rights and status of Executives and Death Beneficiaries thereunder (including, without limitation, the amount of any Benefit to which an Executive or Death Beneficiary may be entitled under the Plans).  The Administrator shall have the power to make reasonable rules and regulations required in the administration of the Plans, to make all determinations necessary for their administration (except those determinations which the Plans requires others to make) and to facilitate their administration.

 

Section 4.3                                    Indemnification.  The Company shall indemnify and defend to the fullest extent permitted by law the Vice President - Human Resources and each person performing duties as the Administrator against all liabilities such person may incur in the administration of the Plans.  The Administrator shall be entitled to reimbursement from the Company for all expenses incurred in the performance of the duties of the Administrator.

 

Section 4.4                                    Expenses.  Except as described in the following sentence, the Company shall pay all expenses incurred in the administration and operation of the Plans.  Notwithstanding the foregoing, and except as provided in the Ecolab Mirror Savings Plan, the expenses of administering the Ecolab Mirror Savings Plan shall be payable from such Plan, unless the Company determines, in its sole discretion, to pay part or all thereof directly.

 

Section 4.5                                    Claims.  Any Executive or Death Beneficiary who believes that he is entitled to receive a Benefit under a Plan which he has not received may file with the Administrator a written claim specifying the basis for his claim and the facts upon which he relies in making such claim.  The Administrator shall review the claim and shall respond in writing to the claimant within sixty (60) days after receiving the claim.  Such written notice shall be written in a manner calculated to be understood by the claimant and shall contain a statement of the specific reasons for the Administrator’s decision.  During the review process, the claimant (or his authorized representative) will be given the opportunity to review the Plan under which he is claiming Benefits and any other documents pertinent thereto and to submit issues and comments in writing.  If the Administrator, upon review, denies any part or all of the Benefits claimed by the claimant, the claimant may, within sixty (60) days after receiving the Administrator’s denial, appeal the Administrator’s decision to the Chief Financial Officer (“CFO”) of the Company.  Within ninety (90) days after receiving the claimant’s notice of appeal, the CFO (or his delegate) shall render a decision with respect to the claim, which decision shall be final and binding on all interested parties.  The Administrator or CFO may, by written notice to the claimant, extend the 60-day or 90-day periods during which such Administrator or CFO must respond if special circumstances (as determined by the Administrator or CFO) require such an extension.

 

Section 4.6                                    American Jobs Creation Act (AJCA).

 

(1)                                 To the extent applicable, it is intended that each Non-Qualified Plan (including all amendments thereto) comply with the provisions of Section 409A of the Code, as enacted by the AJCA, so as to prevent the inclusion in gross income of any amount of benefit accrued hereunder in a taxable year that is prior to the taxable year or years in which such amounts would otherwise be actually distributed or made available to the Executives.  Each Non-Qualified Plan shall be administered in a manner that will comply with the 409A Guidance.  All

 

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provisions of the Administrative Document shall be interpreted in a manner consistent with the 409A Guidance.

 

(2)                                 The Administrator shall not take any action under the Non-Qualified Plans that would violate any provision of Section 409A of the Code.  The Administrator is authorized to adopt rules or regulations deemed necessary or appropriate in connection with the 409A Guidance to anticipate and/or comply with the requirements thereof (including any transition or grandfather rules thereunder).

 

(3)                                 Any benefit under a Non-Qualified Plan that is deemed to have been deferred prior to January 1, 2005 and that qualifies for “grandfathered status” under Section 409A of the Code shall continue to be governed by the law applicable to nonqualified deferred compensation prior to the addition of Section 409A to the Code and shall be subject to the terms and conditions specified in the Administrative Document as in effect prior to January 1, 2005.

 

(4)                                 Notwithstanding any provision of this Administrative Document or any Plan, nothing herein or in any such Plan shall be construed as a guarantee of favorable tax consequences of the provision of Benefits under any of the Plans.

 

ARTICLE V

AMENDMENT AND TERMINATION

 

Section 5.1                                    Amendment.  The Board of Directors of the Company reserves the right to amend, at any time, any or all of the provisions of any or all of the Plans (including this Administrative Document) for all Employers, without the consent of any other Employer or any Executive, Death Beneficiary or any other person, provided, however, that the President and CFO of the Company each individually may amend any or all of the Plans (including this Administrative Document) as determined necessary or appropriate by such individual to improve administration of the Plan or Plans, to coordinate with qualified plans or to comply with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), tax, securities or other similar laws or regulatory requirements.  Any such amendment shall be expressed in an instrument executed by an authorized officer of the Company and shall become effective as of the date designated in such instrument or, if no such date is specified, on the date of its execution.

 

Section 5.2                                    Termination.  The Board of Directors of the Company does hereby reserve the right to terminate any or all of the Plans at any time for any or all Employers, without the consent of any other Employer or of any Executive, Death Beneficiary or any other person.  Such termination shall be expressed in an instrument executed by an authorized officer of the Company and shall become effective as of the date designated in such instrument, or if no date is specified, on the date of its execution.  Any Employer which shall have adopted a Plan may, pursuant to the action of its Board of Directors and with the written consent of the Company, elect separately to withdraw from such Plan and such withdrawal shall constitute a termination of such Plan as to it, but it shall continue to be an Employer for the purposes thereof as to Executives or Death Beneficiaries to whom it owes obligations thereunder.  Any such withdrawal and termination shall be expressed in an instrument executed by an officer of the

 

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terminating Employer and shall become effective as of the date designated in such instrument or, if no date is specified, on the date of its execution.

 

Section 5.3                                    Effect of Amendment and Termination.

 

(1)                                 Except as specifically provided in a particular Plan, the Board of Directors of the Company (or an Employer, if applicable) shall have the authority, in its action to amend or terminate a particular Plan, to determine the effect of such amendment or termination, including, but not limited to, the authority to reduce or eliminate Benefits for Executives who have terminated employment with the Controlled Group, died or became disabled prior to the date of such amendment or termination.

 

(2)                                 Notwithstanding anything in the Plans and this Administrative Document to the contrary, in the event of a termination of a Plan, the Company, in its sole and absolute discretion, shall have the right to change the time and/or manner of distribution of Benefits, including, without limitation, by providing for the payment of a single lump sum payment to each Executive or Death Beneficiary then entitled to a Mirror Pension Benefit or SERP Benefit in an amount equal to the actuarially equivalent present value of such benefit (as determined under the respective Plan); provided, however, that to the extent the requirements of Code Section 409A apply to such Plan, any such changes in the time and manner of payment may be made only to the extent and in a manner permitted by the 409A Guidance.

 

Section 5.4                                    Board of Directors Action.  Any action which is required to be taken by an Employer’s Board of Directors or which a Board of Directors is authorized to take, may be taken by any committee of such Board of Directors which is appointed in accordance with the laws of the state of incorporation of the Employer.  A Board of Directors may, by resolution, delegate to such person or persons as the Board deems advisable any one or more of the powers reserved to the Board under the Plan, subject to the revocation of such delegation by the Board at any time.

 

ARTICLE VI

MISCELLANEOUS

 

Section 6.1                                    Nonalienation.  No right or interest of an Executive or his Death Beneficiary under any Plan shall be anticipated, assigned (either in law or in equity) or alienated by the Executive or his Death Beneficiary, nor shall any such right or interest be subject to attachment, garnishment, levy, execution or other legal or equitable process or in any manner be liable for or subject to the debts of any Executive or Death Beneficiary.  The Company shall give no effect to any instrument purporting to alienate any person’s interest in any Benefits under the Plans.  Notwithstanding the foregoing, in the event that any Benefits under the Plans are provided by insurance contracts which are owned by the Executives, such Executives may assign ownership of such contracts to any other person(s), to the extent permitted by law.

 

Section 6.2                                    Employment Rights.  Employment rights shall not be enlarged or affected hereby.  The Employers shall continue to have the right to discharge an Executive, with or without cause.

 

Section 6.3                                    Adoption of Plans by Employers.  Any member of the Controlled Group may become an Employer under any of the Plans with the prior approval of the Administrator by

 

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furnishing a certified copy of a resolution of its Board of Directors adopting the Plan(s).  Any adoption of a Plan by an Employer, however, must either be authorized by the Board of Directors of the Company in advance or be ratified by such Board prior to the end of the Plan Year in which the Employer adopted the Plan(s).  An Employer that ceases to exist or ceases to be a member of the Controlled Group shall automatically cease being a participating Employer under the Plans.

 

Section 6.4                                    Effect on other Benefits.  Except as specifically provided in the Plans or in any other Employer-sponsored plan, benefits payable to or with respect to an Executive under the Pension Plan or any other Employer-sponsored (qualified or nonqualified) plan, if any, are in addition to those provided under the Plans.

 

Section 6.5                                    Payment to Guardian.  If the Administrator (in his sole discretion) determines that a Benefit payable under a Plan is payable to a minor, to a person declared incompetent or to a person incapable of handling the disposition of his property, the Administrator may (in his or her sole discretion) direct payment of such Benefit to the spouse, parent, adult child, guardian, custodian under the Uniform Transfers to Minors Act of any state, legal representative or person or institution having the care and custody of such minor, incompetent or person.  The Administrator may require such proof of incompetency, minority, incapacity or guardianship as it may deem appropriate prior to distribution of the Benefit.  Such distribution shall completely discharge the Company and the Employers from all liability with respect to such Benefit.

 

Section 6.6                                    Notice.  Any notice required or permitted to be given to the Administrator under the Plan shall be deemed sufficient if in writing and hand delivered, or sent by registered or certified mail, to the General Counsel of the Company.  Such notice shall be deemed given as of the date of receipt by the General Counsel (if delivery is made by hand) or as of the date shown on the postmark on the receipt for registration or certification (if delivery is made by mail).

 

Section 6.7                                    Officers.  Any reference in the Plan to a particular officer of the Company shall also refer to the functional equivalent of such officer in the event the title or responsibilities of that office change.

 

Section 6.8                                    Specified Employee.  For purposes of Code Section 409A and all plans, programs, policies and arrangements that constitute plans of deferred compensation (within the meaning of the 409A Guidance), a “Specified Employee” shall mean an Employee who at any time during the calendar year immediately preceding the Employee’s Separation from Service was (1) a corporate officer of (a) the Company, (b) any Controlled Group member in the U.S., (c) any Controlled Group member outside the U.S., to which such individual was seconded by the Company or its U.S. Controlled Group member, or (d) an Employer outside the U.S.; (2) a five-percent (5%) owner of the Company; or (3) a one-percent (1%) owner of the Company having annual compensation in excess of $150,000.”  For purposes of this Section, an “officer” means any officer elected by the Board of Directors of the Company.

 

Section 6.9                                    Governing Law.  The Plans shall be regulated, construed and administered under the laws of the State of Minnesota, except when preempted by federal law.

 

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Section 6.10                             Gender and Number.  For purposes of interpreting the provisions of the Plans (including this Administrative Document), the masculine gender shall be deemed to include the feminine, the feminine gender shall be deemed to include the masculine, and the singular shall include the plural, unless otherwise clearly required by the context.

 

Section 6.11                             Severability.  If any provision of a Plan (including this Administrative Document) or the application thereof to any circumstances(s) or person(s) is held to be invalid by a court of competent jurisdiction, the remainder of such Plan and the application of such provision to other circumstances or persons shall not be affected thereby.

 

Section 6.12                             Integration.  The Plans (including this Administrative Document) constitute the entire agreement of the parties, and no change, amendment or modification thereof shall be valid and binding unless made in writing in accordance with the provisions of Article V.

 

IN WITNESS WHEREOF, Ecolab Inc. has executed this Administrative Document and has caused its corporate seal to be affixed this 21 day of December, 2011.

 

	
 
    	
 
    	
ECOLAB INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/Steven L. Fritze
    
	
 
    	
 
    	
 
    	
Steven L. Fritze
    
	
 
    	
 
    	
 
    	
Chief Financial Officer
    
	
(Seal)
    	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/James J. Seifert
    	
 
    	
 
    	
 
    
	
James J. Seifert
    	
 
    	
 
    	
 
    
	
General Counsel and Secretary
    	
 
    	
 
    	
 
    

 

11

 

EXHIBIT A

 

	
1.
    	
 
    	
Ecolab Executive Death Benefits Plan
    
	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Ecolab Executive Long-Term Disability Plan
    
	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Ecolab Mirror Pension Plan
    
	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Ecolab Supplemental Executive Retirement Plan
    
	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Ecolab Mirror Savings Plan

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