Document:

EX-10.10

 Exhibit 10.10 
 EXECUTION VERSION 
  

	 Name of Executive: 
	John H. Scribante 

	 Position: 
	Chief Executive Officer 

  

	 Fiscal Year 2013 Base Salary: 
	$460,000 

  

	 Initial Term: 
	Effective date through September 27, 2015 

	 Renewal Periods are: 
	2 Years 

	 Post-Change of Control Renewal Period is: 
	2 Years 

  

	 Severance Multiplier is: 
	2.0x 

	 Post-Change of Control Severance Multiplier is: 
	3.0x 

 EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT

 This Agreement (“Agreement”) is between the Executive named above (“Executive”), on the one hand, and
Orion Energy Systems, Inc. (“Orion” and, together with its subsidiaries, the “Company”), on the other. 

WHEREAS, the Executive has been appointed by the Company’s Board of Directors on the date hereof as the Company’s new
Chief Executive Officer. 
 WHEREAS, in consideration of Executive’s new role and responsibilities, he was provided
with the following compensation arrangement by the Compensation Committee of the Board of Directors: (i) an annual base salary of $460,000; (ii) a fiscal 2013 incentive cash bonus opportunity equal to 100% of his base salary based on the
Company achieving certain fiscal 2013 financial performance targets to be determined within the next 30 days; (iii) a stock option grant covering 100,000 shares, vesting pro rata over a three-year period, with an effective grant date on the
third business day after the Company’s release of its fiscal 2013 second quarter financial results; (iv) a restricted stock grant of 25,000 shares, vesting pro rata over a three-year period; (v) an automobile allowance of $1,000 per
month; and (vi) five weeks of vacation per year. 
 WHEREAS, Orion and Executive desire to specify the terms and
conditions on which Executive will be employed as the Company’s new Chief Executive Officer from and after the date hereof, and under which Executive will receive severance in the event that Executive separates from service with the Company.

 NOW, THEREFORE, for good and valuable consideration, the parties agree as follows: 

1. Effective Date; Term. This Agreement shall become effective on the date hereof and continue until the end of the initial
term set forth above. Thereafter, the Agreement shall renew automatically for successive renewal periods as set forth above unless and until either party provides written notice to the other party of the intent not to renew the Agreement at least
ninety (90) days prior to the end of any term. Notwithstanding the foregoing, if a Change of Control occurs prior to the end of any term, the Agreement shall be automatically extended for the post- Change of Control renewal period set forth
above beginning on the date of 

 
the Change of Control. Expiration of this Agreement will not affect the rights or obligations of the parties hereunder arising out of, or relating to, circumstances occurring prior to the
expiration of this Agreement, which rights and obligations will survive the expiration of this Agreement. 
 2.
Definitions. For purposes of this Agreement, the following terms shall have the meanings ascribed to them: 
 (a) “Accrued Benefits” shall mean the following amounts, payable as described herein: (i) all base salary for the time period ending with the Termination Date;
(ii) reimbursement for any and all monies advanced in connection with the Executive’s employment for reasonable and necessary expenses incurred by the Executive on behalf of the Company for the time period ending with the Termination Date;
(iii) any and all other cash earned through the Termination Date and deferred at the election of the Executive or pursuant to any deferred compensation plan then in effect; and (iv) all other payments and benefits to which the Executive
(or in the event of the Executive’s death, the Executive’s surviving spouse or other beneficiary), including those provided pursuant to Exhibit A, is entitled on the Termination Date under the terms of any benefit plan of the Company,
excluding severance payments under any Company severance policy, practice or agreement in effect on the Termination Date. Payment of Accrued Benefits shall be made promptly in accordance with the Company’s prevailing practice with respect to
clauses (i) and (ii) or, with respect to clauses (iii) and (iv), pursuant to the terms of the benefit plan or practice establishing such benefits. 

(b) “Base Salary” shall mean the Executive’s annual base salary with the Company as in effect from
time to time. 
 (c) “Board” shall mean the board of directors of Orion or a committee of such
Board authorized to act on its behalf in certain circumstances, including the Compensation Committee of the Board. 
 (d) “Cause” shall mean a good faith finding by the Board that Executive has (i) failed, neglected, or refused to perform the lawful employment duties related to his position or as
from time to time assigned to him (other than due to Disability); (ii) committed any willful, intentional, or grossly negligent act having the effect of materially injuring the interest, business, or reputation of the Company;
(iii) violated or failed to comply in any material respect with the Company’s published rules, regulations, or policies, as in effect or amended from time to time; (iv) committed an act constituting a felony or misdemeanor involving
moral turpitude, fraud, theft, or dishonesty; (v) misappropriated or embezzled any property of the Company (whether or not an act constituting a felony or misdemeanor); or (vi) breached any material provision of this Agreement or any other
applicable confidentiality, non-compete, non-solicit, general release, covenant not-to-sue, or other agreement with the Company. 
 (e) “Change of Control” shall mean and be limited to any of the following: 
 (i) any Person (other than (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under any employee benefit plan of the Company or any of its
subsidiaries, (C) an underwriter temporarily holding securities pursuant to an offering of such securities or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as
their ownership of stock in the Company (“Excluded 

  
 2 

 
Persons”)) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired
directly from the Company or its Affiliates, pursuant to express authorization by the Board that refers to this exception) representing twenty percent (20%) or more of either the then outstanding shares of common stock of the Company or the
combined voting power of the Company’s then outstanding voting securities; or 
 (ii) the following
individuals cease for any reason to constitute a majority of the number of directors of the Company then serving: (A) individuals who, on the date hereof, constituted the Board and (B) 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, as such terms are used in Rule 14a-11 of Regulation
14A under the Act) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on
the date hereof, or whose appointment, election or nomination for election was previously so approved (collectively the “Continuing Directors”); provided, however, that individuals who are appointed to the Board pursuant to or in
accordance with the terms of an agreement relating to a merger, consolidation, or share exchange involving the Company (or any direct or indirect subsidiary of the Company) shall not be Continuing Directors for purposes of this Agreement until after
such individuals are first nominated for election by a vote of at least two-thirds (2/3) of the then Continuing Directors and are thereafter elected as directors by the shareholders of the Company at a meeting of shareholders held following
consummation of such merger, consolidation, or share exchange; and, provided further, that in the event the failure of any such persons appointed to the Board to be Continuing Directors results in a Change of Control, the subsequent
qualification of such persons as Continuing Directors shall not alter the fact that a Change of Control occurred; or 
 (iii) the consummation of a merger, consolidation or share exchange of the Company with any other corporation or the issuance of voting securities of the Company in connection with a merger, consolidation
or share exchange of the Company (or any direct or indirect subsidiary of the Company), in each case, which requires approval of the shareholders of the Company, other than (A) a merger, consolidation or share exchange which would result in the
voting securities of the Company outstanding immediately prior to such merger, consolidation or share exchange continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any
parent thereof) at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger, consolidation or share exchange, or
(B) a merger, consolidation or share exchange effected to implement a recapitalization of the Company (or similar transaction) in which no Person (other than an Excluded Person) is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after the date hereof, pursuant to express authorization

  
 3 

 
by the Board that refers to this exception) representing twenty percent (20%) or more of either the then outstanding shares of common stock of the Company or the combined voting power of the
Company’s then outstanding voting securities; or 
 (iv) the consummation of a plan of complete liquidation
or dissolution of the Company or a sale or disposition by the Company of all or substantially all of the Company’s assets (in one transaction or a series of related transactions within any period of 24 consecutive months), in each case, which
requires approval of the shareholders of the Company, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least seventy-five percent (75%) of the combined voting power of the
voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale. 
 Notwithstanding the foregoing, no “Change of Control” shall be deemed to have occurred if there is consummated any transaction or series of integrated transactions immediately following which
the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to own, directly or indirectly, in the same proportions as their ownership in the Company, an entity that owns all or
substantially all of the assets or voting securities of the Company immediately following such transaction or series of transactions. 
 For
purposes of this Section 2(e): 
 (i) the term “Person” shall mean any individual, firm,
partnership, corporation or other entity, including any successor (by merger or otherwise) of such entity, or a group of any of the foregoing acting in concert; 

(ii) the terms “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms
in Rule 12b-2 of the General Rules and Regulations of the Act; 
 (iii) the term “Act” means the
Securities Exchange Act of 1934, as amended; and 
 (iv) a Person shall be deemed to be the “Beneficial
Owner” of any securities which: 
 a) such Person or any of such Person’s Affiliates or Associates has the right to
acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise;
provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or
Associates until such tendered securities are accepted for purchase; 
 b) such Person or any of such Person’s Affiliates
or Associates, directly or indirectly, has the right to vote or dispose of or has “beneficial 

  
 4 

 
ownership” of (as determined pursuant to Rule l3d-3 of the General Rules and Regulations under the Act), including pursuant to any agreement, arrangement or understanding; provided,
however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this clause b) as a result of an agreement, arrangement or understanding to vote such security if the agreement, arrangement or
understanding: (A) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations under the Act and
(B) is not also then reportable on a Schedule l3D under the Act (or any comparable or successor report); or 
 c) are
beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except
pursuant to a revocable proxy as described in clause b) above) or disposing of any voting securities of the Company. 
 (f) “COBRA” shall mean the provisions of Code Section 4980B. 
 (g) “Code” shall mean the Internal Revenue Code of 1986, as amended, as interpreted by rules and regulations issued pursuant thereto, all as amended and in effect from time to time. Any
reference to a specific provision of the Code shall be deemed to include reference to any successor provision thereto. 
 (h) “Competitive Business Activity” shall mean the design and manufacture of lighting, solar and/or energy efficient systems and controls for industrial, commercial and agricultural
facilities. 
 (i) “Disability” shall mean, subject to applicable law, a total and permanent
disability consisting of a mental or physical disability which precludes the disabled Executive from performing the material and substantial duties of his employment. Payment of benefits for total disability under a disability insurance policy shall
be conclusive as to the existence of total disability, although such payments are not required in order to establish total disability for purposes of this Agreement. The Executive has a “total and permanent disability” if he is precluded
by mental or physical disability for 180 days during any twelve (12) month period. For purposes of this Agreement, an Executive shall be deemed totally and permanently disabled at the end of such 180th day. In case of a disagreement as to
whether an Executive is totally and permanently disabled and, at the request of any party, the matter shall be submitted to arbitration as provided for herein, and judgment upon the award may be entered in any court having jurisdiction thereof. Any
costs of such proceedings (including the reasonable legal fees of the prevailing party) shall be borne by the non-prevailing party to such arbitration. 
 (j) “General Release” shall mean a release of all claims that Executive, and anyone who may succeed to any claims of Executive, has or may have against Orion, its board of directors, any
of its subsidiaries or affiliates, or any of their employees, directors, officers, employees, agents, plan sponsors, administrators, successors (including the Successor), fiduciaries, or attorneys, including but not limited to claims

  
 5 

 
arising out of Executive’s employment with, and termination of employment from, the Company, but excluding claims for (i) severance payments and benefits due pursuant to this Agreement
and (ii) any salary, bonus, equity, accrued vacation, expense reimbursement and other ordinary payments or benefits earned or otherwise due with respect to the period prior to the date of any Separation from Service. The General Release shall
be in a form that is reasonably acceptable to the Company or the Board. 
 (k) “Good Reason”
shall mean the occurrence of any of the following without the consent of Executive: (i) a material diminution in the Executive’s Base Salary; (ii) a material diminution in the Executive’s authority, duties or responsibilities;
(iii) a material change in the geographic location at which the Executive must perform services; or (v) a material breach by Orion of any provisions of this Agreement or any option agreement with the Company to which the Executive is a
party. 
 (l) “Separation from Service” shall mean Executive’s termination of employment
from Orion and each entity that is required to be included in Orion’s controlled group of corporations within the meaning of Code Section 414(b), or that is under common control with Orion within the meaning of Code Section 414(c);
provided that the phrase “at least 50 percent” shall be used in place of the phrase “ at least 80 percent” each place it appears therein or in the regulations thereunder (collectively, “409A affiliates”).
Notwithstanding the foregoing: 
 (i) If Executive takes a leave of absence for purposes of military leave, sick
leave or other bona fide leave of absence, Executive will not be deemed to have incurred a Separation from Service for the first six (6) months of the leave of absence, or if longer, for so long as Executive’s right to reemployment is
provided either by statute or by contract. 
 (ii) Subject to paragraph (i), Executive shall incur a Separation
from Service when the level of bona fide services provided by Executive to Orion and its 409A affiliates permanently decreases to a level of twenty percent (20%) or less of the level of services rendered by Executive, on average, during the
immediately preceding 12 months of employment. 
 (iii) If, following Executive’s termination of
employment, Executive continues to provide services to the Company or a 409A Affiliate in a capacity other than as an employee, Executive will not be deemed to have Separated from Service as long as Executive is providing bona fide services at a
rate that is greater than twenty percent (20%) of the level of services rendered by Executive, on average, during the immediately preceding 12 months of service. 

(m) “Severance Payment” shall mean the Executive’s Base Salary at the time of the Termination Date
plus the average of the annual bonuses earned by the Executive with respect to each of the three completed fiscal years of the Company preceding the year in which the Termination Date occurs (or such lesser number of fiscal years for which the
Executive was employed by the Company as its Chief Executive Officer (beginning on the date hereof), with any partial year’s bonus being annualized with respect to such fiscal year) multiplied by the severance multiplier set forth above;
provided that if Executive’s Termination Date occurs on or following a Change of Control, the multiplier described above shall be increased to the post-Change of Control 

  
 6 

 
severance multiplier set forth above and any reduction in Executive’s Base Salary since the date of the Change of Control shall be ignored. 

(n) “Successor” shall mean the person to which this Agreement is assigned upon a Sale of Business within
the meaning of Section 10. 
 (o) “Termination Date” shall mean the date of the
Executive’s termination of employment from the Company, as further described in Section 4. 
 3. Employment of
Executive. 
 (a) Position. 

(i) Executive shall serve in the position set forth above in a full-time capacity. In such position, Executive shall have
such duties and authority as is customarily associated with such position and shall have such other titles and duties, consistent with Executive’s position, as may be assigned from time to time by the Board. 

(ii) Executive will devote Executive’s full business time and best efforts to the performance of Executive’s
duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services either directly or indirectly, without the prior written consent
of the Board; provided that nothing herein shall preclude Executive, subject to the prior approval of the Board, from accepting appointment to or continue to serve on any board of directors or trustees of any business organization or any
charitable organization; further provided in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of Executive’s duties hereunder or conflict with Section 7. 

(b) Base Salary. Orion shall pay Executive a Base Salary at the respective annual rate set forth above, payable in
regular installments in accordance with the Company’s usual payroll practices. Executive shall be entitled to such increases in Executive’s base salary, if any, as may be determined from time to time by the Board. 

(c) Bonus Incentives. Executive shall be entitled to participate in such annual and/or long-term cash and equity
incentive plans and programs of Orion as are generally provided to the senior executives of Orion or as otherwise provided by the Board or the Compensation Committee thereof. On and after a Change of Control, to assure that Executive will have an
opportunity to earn incentive compensation, the Executive shall be included in a bonus plan of the Employer which shall satisfy the standards described below (such plan, the “Bonus Plan”). Bonuses under the Bonus Plan shall be payable with
respect to achieving such financial or other goals reasonably related to the business of the Company as the Company shall establish (the “Goals”), all of which Goals shall be attainable, prior to the end of the post-Change of Control
renewal period (as set forth above), with approximately the same degree of probability as the most attainable goals under the Company’s bonus plan or plans as in effect at any time during the 180-day period immediately prior to the Change of
Control (whether one or more, the “Company Bonus Plan”) and in view of the Company’s existing and projected financial and business circumstances applicable at the time. The amount of the bonus (the “Bonus Amount”) that
Executive is eligible to earn under the Bonus Plan shall be no less than 

  
 7 

 
100% of the Executive’s target award provided in such Company Bonus Plan (such bonus amount herein referred to as the “Targeted Bonus”), and in the event the Goals are not achieved
such that the entire Targeted Bonus is not payable, the Bonus Plan shall provide for a payment of a Bonus Amount equal to a portion of the Targeted Bonus reasonably related to that portion of the Goals which were achieved. Payment of the Bonus
Amount shall not be affected by any circumstance occurring subsequent to the end of the post-Change of Control renewal period, including termination of Executive’s employment. 

(d) Employee Benefits. Executive shall be entitled to participate in the Company’s employee benefit plans
(other than annual and/or long-term incentive programs, which are addressed in subsection (c)) as in effect from time to time on the same basis as those benefits are generally made available to other senior executives of Orion. On and after a Change
of Control, Executive shall be included: (i) to the extent eligible thereunder (which eligibility shall not be conditioned on Executive’s salary grade or on any other requirement which excludes persons of comparable status to the Executive
unless such exclusion was in effect for such plan or an equivalent plan immediately prior to the Change in Control of the Company), in any and all plans providing benefits for the Company’s salaried employees in general (including but not
limited to group life insurance, hospitalization, medical, dental, and long-term disability plans) and (ii) in plans provided to executives of the Company of comparable status and position to Executive (including but not limited to deferred
compensation, split-dollar life insurance, supplemental retirement, stock option, stock appreciation, stock bonus, cash bonus and similar or comparable plans); provided, that, in no event shall the aggregate level of benefits under the
plans described in clause (i) and the plans described in clause (ii), respectively, in which Executive is included be less than the aggregate level of benefits under plans of the Company of the type referred to in such clause, respectively, in
which Executive was participating immediately prior to the Change in Control. 
 (e) Business Expenses.
The reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies. 

(f) Other Perquisites. Executive shall be entitled to receive the other benefits and perquisites set forth in
Exhibit A. 
 4. Termination of Employment. Executive’s employment with the Company will terminate during the
term of the Agreement, and this Agreement will terminate on the date of such termination, as follows: 
 (a)
Executive’s employment will terminate upon Executive’s death. 
 (b) If Executive is Disabled, and if
within thirty (30) days after Orion notifies the Executive in writing that it intends to terminate the Executive’s employment, the Executive shall not have returned to the performance of the Executive’s duties hereunder on a full-time
basis, Orion may terminate the Executive’s employment, effective immediately following the end of such thirty (30)-day period. 
 (c) Orion may terminate Executive’s employment with or without Cause (other than as a result of Disability which is governed by subsection (b)) by providing written notice to Executive that
indicates in reasonable detail the facts and circumstances 

  
 8 

 
alleged to provide a basis for such termination. If the termination is without Cause, Executive’s employment will terminate on the date specified in the written notice of termination. If the
termination is for Cause, the Executive shall have thirty (30) days from the date the written notice is provided, or such longer period as Orion may determine to be appropriate, to cure any conduct or act, if curable, alleged to provide grounds
for termination of Executive’s employment for Cause. If the alleged conduct or act constituting Cause is not curable, Executive’s employment will terminate on the date specified in the written notice of termination. If the alleged conduct
or act constituting Cause is curable but Executive does not cure such conduct or act within the specified time period, Executive’s employment will terminate on the date immediately following the end of the cure period. Notwithstanding the
foregoing, a determination of Cause shall only be made in good faith by the Board, and after a Change of Control, by the Board of Directors of the Successor, which may terminate Executive for Cause only after providing Executive (i) written
notice as set forth above, (ii) the opportunity to appear before such board and provide rebuttal to such proposed termination, and (iii) written notice following such appearance confirming such termination and certifying that the decision
to terminate Executive for Cause was approved in good faith by at least sixty-six percent (66%) of the members of such board, excluding Executive. Unless otherwise directed by Orion, from and after the date of the written notice of proposed
termination, Executive shall be relieved of his duties and responsibilities and shall be considered to be on a paid leave of absence pending any final action by the Board or the Board of Directors of the Successor confirming such proposed
termination. 
 (d) Executive may terminate his employment for or without Good Reason by providing written
notice of termination to Orion that indicates in reasonable detail the facts and circumstances alleged to provide a basis for such termination. If Executive is alleging a termination for Good Reason, Executive must provide written notice to Orion of
the existence of the condition constituting Good Reason within ninety (90) days of the initial existence of such condition, and Orion must have a period of at least thirty (30) days following receipt of such notice to cure such condition.
If such condition is not cured by Orion within such thirty (30)-day period, Executive’s termination of employment from the Company shall be effective on the date immediately following the end of such cure period. 

5. Payments upon Termination. 
 (a) Entitlement to Severance. Subject to the other terms and conditions of this Agreement, Executive shall be entitled to the Accrued Benefits, and to the severance benefits described in subsection
(c), in either of the following circumstances while this Agreement is in effect: 
 (i) Executive’s
employment is terminated by Orion without Cause, except in the case of death or Disability; or 
 (ii) Executive
terminates his employment with the Company for Good Reason. 
 If Executive dies after receiving a notice by Orion that
Executive is being terminated without Cause, or after providing notice of termination for Good Reason, the Executive’s estate, heirs and beneficiaries shall be entitled to the Accrued Benefits and the severance

  
 9 

 
benefits described in subsection (c) at the same time such amounts would have been paid or benefits provided to Executive had he or she lived. 

(b) General Release Requirement. As an additional prerequisite for receipt of the severance benefits described in
subsection (c), Executive must execute, deliver to Orion, and not revoke (to the extent Executive is allowed to do so) a General Release. 
 (c) Severance Benefits; Timing and Form of Payment. Subject to the limitations imposed by Section 6, if Executive is entitled to severance benefits, then: 

(i) Company shall pay Executive the Severance Payment in a lump sum within ten (10) days
following the Executive’s Separation from Service, or if later, the date on which the General Release is no longer revocable, or if later, the date on which the amount payable under Section 6 is determined, but in no event may be payment
be made more than 2 1/2 months after the year in which Executive’s Separation from Service occurs; 
 (ii) At the same time that the Severance Payment is made, Company shall pay Executive a lump sum amount equal to the Executive’s annual target cash bonus opportunity (if any) as established by the
Board or the Compensation Committee of the Board for the fiscal year in which the Separation from Service occurs, multiplied by a fraction, the numerator of which is the number of days that have elapsed during the annual performance period to the
date of the Executive’s Separation from Service and the denominator of which is 365; and 
 (iii) Executive
shall be entitled to pay premiums for COBRA continuation coverage for the length of such coverage at the same rate as is being charged to active employees for similar coverage. 

All payments shall be subject to payroll taxes and other withholdings in accordance with the Company’s (or the applicable employer
of record’s) standard payroll practices and applicable law. 
 (d) Other Termination of Employment.
If Executive’s employment terminates for any reason other than those described in subsection (a), the Executive (or the Executive’s estate in the event of his death), shall be entitled to receive only the Accrued Benefits. Executive must
be terminated for Cause pursuant to and in accordance with Section 4(c) of this Agreement in order for the consequences of such a Cause termination to apply to Executive under any stock option or similar equity award agreement with the Company
to which Executive is then a party. The Company’s obligations under this Section 5 shall survive the termination of this Agreement. 
 6. Limitations on Severance Payments and Benefits. Notwithstanding any other provision of this Agreement, if any portion of the Severance Payment or any other payment under this Agreement,
or under any other agreement with or plan of the Company (in the aggregate “Total Payments”), would constitute an “excess parachute payment,” then the Total Payments to be made to Executive shall be reduced such that the value of
the aggregate Total Payments that Executive is entitled to receive shall be One Dollar ($1) less than the maximum amount which Executive may receive without becoming subject to the tax imposed by Code Section 4999 or which the Company may pay
without loss of deduction under Code 

  
 10 

 
Section 280G(a); provided that the foregoing reduction in the amount of Total Payments shall not apply if the After-Tax Value to Executive of the Total Payments prior to reduction in
accordance herewith is greater than the After-Tax Value to Executive if Total Payments are reduced in accordance herewith. For purposes of this Agreement, the terms “excess parachute payment” and “parachute payments” shall have
the meanings assigned to them in Code Section 280G, and such “parachute payments” shall be valued as provided therein. Present value for purposes of this Agreement shall be calculated in accordance with Code Section 1274(b)(2).
Within twenty (20) business days following delivery of the notice of termination or notice by Orion to Executive of its belief that there is a payment or benefit due Executive that will result in an excess parachute payment as defined in Code
Section 280G, Executive and Orion, at Orion’s expense, shall obtain the opinion (which need not be unqualified) of nationally recognized tax counsel selected by Orion’s independent auditors and acceptable to Executive in
Executive’s sole discretion, which opinion sets forth: (A) the amount of the Base Period Income, (B) the amount and present value of Total Payments, (C) the amount and present value of any excess parachute payments without regard
to the limitations of this Section 6, (D) the After-Tax Value of the Total Payments if the reduction in Total Payments contemplated under this Section 6 did not apply, and (E) the After-Tax Value of the Total Payments taking into
account the reduction in Total Payments contemplated under this Section 6. As used in this Section 6, the term “Base Period Income” means an amount equal to Executive’s “annualized includible compensation for the base
period” as defined in Code Section 280G(d)(1). For purposes of such opinion, the value of any noncash benefits or any deferred payment or benefit shall be determined by Orion’s independent auditors in accordance with the principles of
Code Sections 280G(d)(3) and (4), which determination shall be evidenced in a certificate of such auditors addressed to Orion and Executive. For purposes of determining the After-Tax Value of Total Payments, Executive shall be deemed to pay federal
income taxes and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in which the Termination Payment is to be made and state and local income taxes at the highest marginal rates of taxation
in the state and locality of Executive’s domicile for income tax purposes on the date the Termination Payment is to be made, net of the maximum reduction in federal income taxes that may be obtained from deduction of such state and local taxes.
Such opinion shall be dated as of the Termination Date and addressed to Orion and Executive and shall be binding upon the Company and Executive. If such opinion determines that there would be an excess parachute payment and that the After-Tax Value
of the Total Payments taking into account the reduction contemplated under this Section is greater than the After-Tax Value of the Total Payments if the reduction in Total Payments contemplated under this Section did not apply, then the Termination
Payment hereunder or any other payment determined by such counsel to be includible in Total Payments shall be reduced or eliminated as specified by Executive in writing delivered to Orion within five business days of Executive’s receipt of such
opinion or, if Executive fails to so notify Orion, then as Orion shall reasonably determine, so that under the bases of calculations set forth in such opinion there will be no excess parachute payment. If such legal counsel so requests in connection
with the opinion required by this Section, Executive and Orion shall obtain, at Orion’s expense, and the legal counsel may rely on in providing the opinion, the advice of a firm of recognized executive compensation consultants as to the
reasonableness of any item of compensation to be received by Executive. Notwithstanding the foregoing, the provisions of this Section 6, including the calculations, notices and opinions provided for herein, shall be based upon the conclusive
presumption that the following are reasonable: (1) the compensation and benefits provided for in Section 3 and (2) any other compensation, including but not limited to the Accrued Benefits, earned prior to the date of Executive’s
Separation from Service by the Executive pursuant to the Company’s compensation programs if such payments would have been made in the future in any event, even though the timing of such payment is triggered by the 

  
 11 

 
Change in Control or the Executive’s Separation from Service. If the provisions of Code Sections 280G and 4999 are repealed without succession, then this Section 6 shall be of no
further force or effect. 
 7. Covenants by Executive. 

(a) Confidentiality and Non-Disclosure. During Executive’s employment with the Company and for a period of
two years following Executive’s Separation from Service, he or she agrees that he or she will not, except in furtherance of the business of the Company, disclose, furnish, or make available to any person or use for the benefit of himself or any
other person any confidential or proprietary information or data of the Company including, but not limited to, trade secrets, customer and supplier lists, pricing policies, operational methods, marketing plans or strategies, product development
techniques or plans, business acquisition or disposition plans, new personnel employment plans, methods of manufacture, technical process, and formulae, designs and design projects, inventions and research projects and financial budgets and
forecasts except (i) information which at the time is available to others in the business or generally known to the public other than as a result of disclosure by Executive not permitted hereunder, and (ii) when required to do so by a
court of competent jurisdiction, by any governmental agency or by any administrative, legislative or regulatory body; provided that in this instance Executive shall make reasonable efforts to inform the Company of any such request prior to
any disclosure so as to permit the Company a meaningful opportunity to seek a protective order or similar adjudication. Upon termination of his employment with the Company, Executive will immediately return to the Company all written or
electronically stored confidential or proprietary information in whatever format it is contained. 
 (b)
Non-Competition/Non-Solicitation. 
 (i) During Executive’s employment with the Company and for a
period of two years following Executive’s Separation from Service, Executive agrees not to directly or indirectly engage, or assist any business or entity, in Competitive Business Activity in any capacity, including without limitation as an
employee, officer, or director of, or consultant or advisor to, any person or entity engaged directly or indirectly in a business which engages in Competitive Business Activity, in North America or anywhere that Orion or its Successor does business
at the time of Executive’s termination of employment, without the written consent of the Board. 
 (ii)
During Executive’s employment with the Company and for a period of two years following Executive’s Separation from Service, Executive agrees not to, in any form or manner, directly or indirectly, on his own behalf or in combination with
others (1) solicit, induce or influence any customer, supplier, lender, lessor or any other person with a business relationship with the Company to discontinue or reduce the extent of such business relationship, or (2) recruit, solicit or
otherwise induce or influence any employee of the Company to discontinue their employment with the Company. 

(c) Disclosure and Assignment to the Company of Inventions and Innovations. 

  
 12 

 (i) Executive agrees to disclose and assign to the Company as the
Company’s exclusive property, all inventions and technical or business innovations, including but not limited to all patentable and copyrightable subject matter (collectively, the “Innovations”) developed, authored or conceived by
Executive solely or jointly with others during the period of Executive’s employment, including during Executive’s employment prior to the date of this Agreement, (1) that are along the lines of the business, work or investigations of
the Company to which Executive’s employment relates or as to which Executive may receive information due to Executive’s employment with the Company, or (2) that result from or are suggested by any work which Executive may do for the
Company or (3) that are otherwise made through the use of Company time, facilities or materials. To the extent any of the Innovations is copyrightable, each such Innovation shall be considered a “work for hire.” 

(ii) Executive agrees to execute all necessary papers and otherwise provide proper assistance (at the Company’s
expense), during and subsequent to Executive’s employment, to enable the Company to obtain for itself or its nominees, all right, title, and interest in and to patents, copyrights, trademarks or other legal protection for such Innovations in
any and all countries. 
 (iii) Executive agrees to make and maintain for the Company adequate and current
written records of all such Innovations; 
 (iv) Upon any termination of Executive’s employment, Executive
agrees to deliver to the Company promptly all items which belong to the Company or which by their nature are for the use of Company employees only, including, without limitation, all written and other materials which are of a secret or confidential
nature relating to the business of the Company. 
 (v) In the event Company is unable for any reason whatsoever
to secure Executive’s signature to any lawful and necessary documents required, including those necessary for the assignment of, application for, or prosecution of any United States or foreign application for letters patent or copyright for any
Innovation, Executive hereby irrevocably designates and appoints Company and its duly authorized officers and agents as Executive’s agent and attorney-in-fact, to act for and in Executive’s behalf and stead to execute and file any such
applications and to do all other lawfully permitted acts to further the assignment, prosecution, and issuance of letters patent or registration of copyright thereon with the same legal force and effect as if executed by Executive. Executive hereby
waives and quitclaims to Company any and all claims, of any nature whatsoever, which Executive may now have or may hereafter have for infringement of any patent or copyright resulting from any such application. 

(d) Remedies Not Exclusive. In the event that Executive breaches any terms of this Section 7, Executive
acknowledges and agrees that said breach may result in the immediate and irreparable harm to the business and goodwill of the Company and that damages, if any, and remedies of law for such breach may be inadequate and indeterminable. The Company,
upon Executive’s breach of this Section 7, shall therefore be entitled (in addition to and without limiting any other remedies that the Company may seek under this Agreement or otherwise at law or in equity) to (1) seek from any court
of 

  
 13 

 
competent jurisdiction equitable relief by way of temporary or permanent injunction and without being required to post a bond, to restrain any violation of this Section 7, and for such
further relief as the court may deem just or proper in law or equity, and (2) in the event that the Company shall prevail, its reasonable attorneys fees and costs and other expenses in enforcing its rights under this Section 7. 

(e) Severability of Provisions. If any restriction, limitation, or provision of this Section 7 is deemed to
be unreasonable, onerous, or unduly restrictive by a court of competent jurisdiction, it shall not be stricken in its entirety and held totally void and unenforceable, but shall remain effective to the maximum extent possible within the bounds of
the law. If any phrase, clause or provision of this Section 7 is declared invalid or unenforceable by a court of competent jurisdiction, such phrase, clause, or provision shall be deemed severed from this Section 7, but will not affect any
other provision of this Section 7, which shall otherwise remain in full force and effect. The provisions of this Section 7 are each declared to be separate and distinct covenants by Executive. 

8. Notice. Any notice, request, demand or other communication required or permitted herein will be deemed to be properly
given when personally served in writing or when deposited in the United States mail, postage prepaid, addressed to Executive at the address appearing at the end of this Agreement and to the Company with attention to the Chairman of the Board of
Orion and the General Counsel of Orion. Either party may change its address by written notice in accordance with this paragraph. 
 9. Set Off; Mitigation. The Company’s obligation to pay Executive the amounts and to provide the benefits hereunder shall be subject to set-off, counterclaim or recoupment of amounts
owed by Executive to the Company. However, Executive shall not be required to mitigate the amount of any payment provided for pursuant to this Agreement by seeking other employment or otherwise. 

10. Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective executors, administrators, successors and assigns. If Orion experiences a Change of Control, or otherwise sells, assigns or transfers all or substantially all of its business and assets to any person or if Orion merges into or
consolidates or otherwise combines (where Orion does not survive such combination) with any person (any such event, a “Sale of Business”), then Orion shall assign all of its right, title and interest in this Agreement as of the date of
such event to such person, and Orion shall cause such person, by written agreement in form and substance reasonably satisfactory to Executive, to expressly assume and agree to perform from and after the date of such assignment all of the terms,
conditions and provisions imposed by this Agreement upon the Company. Failure of Orion to obtain such agreement prior to the effective date of such Sale of Business shall be a breach of this Agreement constituting “Good Reason” hereunder,
except that for purposes of implementing the foregoing the date upon which such Sale of Business becomes effective shall be the Termination Date. In case of such assignment by Orion and of assumption and agreement by such person, as used in this
Agreement, “Orion” shall thereafter mean the person which executes and delivers the agreement provided for in this Section 10 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law, and
this Agreement shall inure to the benefit of, and be enforceable by, such person. Executive shall, in his discretion, be entitled to proceed against any or all of such persons, any person which theretofore was such a successor to Orion, and Orion
(as so defined) in any action to enforce any rights of Executive hereunder. Except as provided in this Section 10, this Agreement shall not be assignable by 

  
 14 

 
Orion. This Agreement shall not be terminated by the voluntary or involuntary dissolution of Orion. 
 11. Arbitration. Any controversy or claim arising out of or relating to this Agreement or the breach of this Agreement that cannot be mutually resolved by the Executive and the Company,
including any dispute as to the calculation of the Executive’s Benefits, Base Salary, Bonus Amount or any Severance Payment hereunder, shall be submitted to arbitration in Milwaukee, Wisconsin, in accordance with the procedures of the American
Arbitration Association. The determination of the arbitrator shall be conclusive and binding on the Company and the Executive, and judgment may be entered on the arbitrator’s award in any court having jurisdiction. 

12. Applicable Law and Jurisdiction. This Agreement is to be governed by and construed under the laws of the United States
and of the State of Wisconsin without resort to Wisconsin’s choice of law rules. Each party hereby agrees that the forum and venue for any legal or equitable action or proceeding arising out of, or in connection with, this Agreement will lie in
the appropriate federal or state courts in the State of Wisconsin and specifically waives any and all objections to such jurisdiction and venue. 
 13. Captions and Paragraph Headings. Captions and paragraph headings used herein are for convenience only and are not a part of this Agreement and will not be used in construing it.

 14. Invalid Provisions. Subject to Section 7(e), should any provision of this Agreement for any reason be
declared invalid, void, or unenforceable by a court of competent jurisdiction, the validity and binding effect of any remaining portion will not be affected, and the remaining portions of this Agreement will remain in full force and effect as if
this Agreement had been executed with said provision eliminated. 
 15. No Waiver. The failure of a party to
insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of
this Agreement. 
 16. Entire Agreement. This Agreement contains the entire agreement of the parties with respect
to the subject matter of this Agreement except where other agreements are specifically noted, adopted, or incorporated by reference. This Agreement otherwise supersedes any and all other agreements (including the Executive’s prior Executive and
Severance Agreement and, with respect to the definition of Cause and the process for Cause termination, any stock option or similar equity award agreements with the Company to which Executive may now or hereafter be a party), either oral or in
writing, between the parties hereto with respect to the employment of Executive by Company, and all such agreements shall be void and of no effect. Each party to this Agreement acknowledges that no representations, inducements, promises, or
agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement will be valid or binding.

 17. Modification. This Agreement may not be modified or amended by oral agreement, but only by an agreement in
writing signed by Orion and Executive. 

  
 15 

 18. Counterparts. This Agreement may be signed in counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 IN
WITNESS WHEREOF, this Agreement is effective as of September 27, 2012. 
 EXECUTIVE 

 
  
 John H. Scribante 
  

  
  

Address 
  

			
	ORION ENERGY SYSTEMS, INC.
		
	By:	 	 
		 	 James R. Kackley
 Chairman
of the Board

  
 16 

 EXHIBIT A 

 

			
		
	Executive:	  	John H. Scribante

 Benefits and Perquisites* 
 * Note: The listed benefits and perquisites are in addition to those generally made available to all other senior executives of Orion under the Company’s employee benefit plans (other than annual and
long-term cash and equity incentive plans, which are addressed in Section 3(c) of the Agreement) as in effect from time to time. Executive is entitled to participate in such benefit plans on the same basis as those benefits are generally made
available to other senior executives of Orion. Currently, such company-wide benefits include: (i) 401(k) Plan; (ii) group short term disability insurance; and (iii) group health and prescription drug insurance. 

 

			
	 Benefit
	  	 Amount

		
	1. Life Insurance	  	$1,000,000 (face value)
		
	2. Health/Prescription Drug Reimbursement	  	Reimbursed by Company Per Current Practice
		
	3. Group Long Term Disability Insurance	  	Reimbursed by Company Per Current Practice
		
	4. River Wildlife Membership	  	
		
	5. Automobile Allowance	  	$1,000 per month
		
	6. Vacation	  	5 weeks per year

  
 17Second Supplemental Indenture

 Exhibit 4.3 

 
  
 TYCO FLOW CONTROL INTERNATIONAL FINANCE S.A., 
 as Issuer 

AND 
 PENTAIR
LTD. 
 as Guarantor 
 AND 
 PENTAIR, INC. 

AND 
 WELLS FARGO
BANK, NATIONAL ASSOCIATION, 
 as Trustee 
 SECOND SUPPLEMENTAL INDENTURE 
 Dated as of September 24, 2012 

$550,000,000 of 3.150% Notes due 2022 
  

 
  

 THIS SECOND SUPPLEMENTAL INDENTURE is dated as of September 24, 2012 among TYCO FLOW
CONTROL INTERNATIONAL FINANCE S.A., a Luxembourg public limited liability company (société anonyme) with registered office at 29, avenue de la Porte Neuve, L-2227 Luxembourg and registered with the Luxembourg Trade and Companies
Register under number B 166305 (the “Company”), PENTAIR LTD., a corporation limited by shares (Aktiengesellschaft) organized under the laws of Switzerland and formerly known as Tyco Flow Control International Ltd.
(“Parent”), PENTAIR, INC., a Minnesota corporation (“Pentair”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (the “Trustee”). 

RECITALS 
 A.
Parent, the Company and the Trustee executed and delivered an Indenture, dated as of September 24, 2012 (the “Base Indenture”), to provide for the issuance by the Company from time to time of unsubordinated debt securities
evidencing its unsecured indebtedness and the guarantee of such securities by Parent to the extent described therein and herein. 
 B. Pursuant to resolutions of a duly authorized Pricing Committee of the Board of Directors, the Company has authorized the issuance of $550,000,000 principal amount of 3.150% Notes due 2022 (the
“Offered Securities”). 
 C. The entry into this Second Supplemental Indenture by the parties hereto is in all
respects authorized by the provisions of the Base Indenture. 
 D. Parent, the Company and Pentair desire to enter into this
Second Supplemental Indenture pursuant to Section 9.01 of the Base Indenture to establish the terms of the Offered Securities in accordance with Section 2.01 of the Base Indenture and to establish the form of the Offered Securities in
accordance with Section 2.02 of the Base Indenture. 
 E. All things necessary to make this Second Supplemental Indenture a
legal, valid and binding indenture and agreement according to its terms have been done. 
 NOW, THEREFORE, for and in
consideration of the foregoing premises, Parent, the Company, Pentair and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective holders from time to time of the Offered Securities as follows: 

ARTICLE I 
  

	Section 1.1.	Terms of Offered Securities. 

 The following terms relate to the Offered Securities: 
 (1) The Offered Securities
constitute a series of securities having the title “3.150% Notes due 2022”. 
 (2) The initial aggregate principal
amount of the Offered Securities that may be authenticated and delivered under the Base Indenture (except for Offered Securities 

  
 2 

Second Supplemental Indenture 

 
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Offered Securities pursuant to Section 2.05, 2.06, 2.07, 2.11, or 3.03 of the Base
Indenture) is $550,000,000. 
 (3) The entire Outstanding principal of the Offered Securities shall be payable on
September 15, 2022. 
 (4) The rate at which the Offered Securities shall bear interest shall be 3.150% per year. The
date from which interest shall accrue on the Offered Securities shall be September 24, 2012, or the most recent Interest Payment Date to which interest has been paid or provided for. The Interest Payment Dates for the Offered Securities shall
be March 15 and September 15 of each year, beginning March 15, 2013. Interest shall be payable on each Interest Payment Date to the Holders of record at the close of business on the March 1 and September 1 prior to each
Interest Payment Date (a “regular record date”). The basis upon which interest shall be calculated shall be that of a 360-day year consisting of twelve 30-day months. 

(5) The Offered Securities shall be issuable in whole in the registered form of one or more Global Securities, and the Depositary for
such Global Securities shall be The Depository Trust Company, New York, New York. The Offered Securities shall be substantially in the form attached hereto as Exhibit A the terms of which are herein incorporated by reference. The Offered Securities
shall be issuable in denominations of $2,000 or any integral multiple of $1,000 in excess thereof. 
 (6) (A) The
Offered Securities will be subject to redemption at the Company’s option on any date (a “Redemption Date”) prior to the maturity date, in whole or from time to time in part, in $1,000 increments
(provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof). Prior to June 15, 2022, the Offered Securities will be redeemable at a redemption price equal to the greater of
(i) 100% of the principal amount of the Offered Securities to be redeemed and (ii) as determined by the Quotation Agent and delivered to the Trustee in writing, the sum of the present values of the remaining scheduled payments of principal
and interest thereon due on any date after the Redemption Date (excluding the portion of interest that will be accrued and unpaid to and including the Redemption Date) discounted from their scheduled date of payment to the Redemption Date (assuming
a 360-day year consisting of twelve 30-day months) at the Adjusted Redemption Treasury Rate plus 25 basis points, plus accrued and unpaid interest, if any, thereon to, but excluding, the Redemption Date. On or after June 15, 2022, the Offered
Securities will be redeemable in whole or in part from time to time, at the Company’s option, at a redemption price equal to 100% of the principal amount of the Offered Securities to be redeemed plus accrued and unpaid interest thereon to, but
excluding, the Redemption Date.  
 (B) As used herein: 

“Adjusted Redemption Treasury Rate”, with respect to any Redemption Date, means the rate equal to the semiannual
equivalent yield to maturity or interpolated (on a 30/360 day count basis) yield to maturity of the Comparable Redemption Treasury Issue, assuming a price for the Comparable Redemption Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Redemption Treasury Price for such Redemption Date. 

  
 3 

Second Supplemental Indenture 

 “Comparable Redemption Treasury Issue” means the United States Treasury
security selected by the Quotation Agent as being the most recently issued United States Treasury note or bond as displayed by Bloomberg LP (or any successor service) on screens PXI through PX8 (or any other screens as may replace such screens on
such service) have a maturity comparable to the remaining term of the Offered Securities to be redeemed. 
 “Comparable
Redemption Treasury Price”, with respect to any Redemption Date, means (i) the average of the Redemption Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Redemption Reference
Treasury Dealer Quotations (unless there is more than one highest or lowest quotation, in which case only one such highest and/or lowest quotation shall be excluded), or (ii) if the Quotation Agent obtains fewer than four such Redemption
Reference Treasury Dealer Quotations, the average of all such Redemption Reference Treasury Dealer Quotations. 

“Quotation Agent” means a Redemption Reference Treasury Dealer appointed as such agent by the Company. 

“Redemption Reference Treasury Dealer” means four primary U.S. government securities dealers in the United States
selected by the Company. 
 “Redemption Reference Treasury Dealer Quotations”, with respect to each Redemption
Reference Treasury Dealer and any Redemption Date, means the average, as determined by the Quotation Agent, of the bid and offer prices at 11:00 a.m., New York City time, for the Comparable Redemption Treasury Issue (expressed in each case as a
percentage of its principal amount) for settlement on the Redemption Date quoted in writing to the Quotation Agent by such Redemption Reference Treasury Dealer on the third Business Day preceding such Redemption Date. 

(7) Except as provided herein, the Offered Securities shall not be subject to redemption, repurchase or repayment at the option of any
Holder thereof, upon the occurrence of any particular circumstances or otherwise. The Offered Securities will not have the benefit of any sinking fund. For the avoidance of doubt, Parent, the Company and their respective Affiliates may purchase
Offered Securities from the Holders thereof from time to time, either in the open market at prevailing prices or in private transactions at negotiated prices. Any Offered Securities purchased by Parent, the Company or any of their respective
Affiliates may, at the purchaser’s discretion, be held, resold or canceled, provided, however, that no Securities that constitute “restricted securities” (as defined in Rule 144 under the Securities Act of 1933) shall be resold for a
period of one year after the date hereof. 
 (8) Except as provided herein, the Holders of the Offered Securities shall have no
special rights in addition to those provided in the Base Indenture upon the occurrence of any particular events. 
 (9) The
Offered Securities will be general unsecured and unsubordinated obligations of the Company and will be ranked equally among themselves. 
 (10) The Offered Securities are not convertible into shares of common stock or other securities of the Company or Parent. 

  
 4 

Second Supplemental Indenture 

	Section 1.2	Additional Defined Terms. 

As used herein, the following defined terms shall have the following meanings with respect to the Offered Securities only: 

“Attributable Debt”, in connection with a Sale and Lease-Back Transaction, as of any particular time, means the
aggregate of present values (discounted at a rate that, at the inception of the lease, represents the effective interest rate that the lessee would have incurred to borrow over a similar term the funds necessary to purchase the leased assets) of the
obligations of the Company, Parent or any Restricted Subsidiary for net rental payments during the remaining term of the applicable lease, including any period for which such lease has been extended or, at the option of the lessor, may be extended.
The term “net rental payments” under any lease of any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including any amounts required to be paid by such lessee,
whether or not designated as rental or additional rental, on account of maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges required to be paid by such lessee thereunder or any amounts required to
be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges. 
 “Change of Control” means the occurrence on or after the date of the Escrow Release Date of any of the following (excluding, in each case, the internal reorganization and other
transactions connected to the Spin-Off and the Merger): (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or
substantially all of the assets of Parent and its Subsidiaries, taken as a whole, to any person other than Parent or a direct or indirect wholly-owned Subsidiary of Parent; (2) the consummation of any transaction (including, without limitation,
any merger or consolidation) the result of which is that any person becomes the “beneficial owner” (as defined in Rules 13(d)(3) and 13(d)(5) under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock
of Parent or other Voting Stock into which Parent’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) Parent consolidates with, or merges with or into, any person,
or any person consolidates with, or merges with or into, Parent, in any such event pursuant to a transaction in which any of the outstanding Voting Stock of Parent or such other person is converted into or exchanged for cash, securities or other
property, other than any such transaction where the shares of the Voting Stock of Parent outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, at least a majority of the Voting Stock of the surviving
person or any direct or indirect parent company of the surviving person immediately after giving effect to such transaction; (4) the first day on which a majority of the members of the Board of Directors of Parent are not Continuing Directors
or (5) the approval by the holders of Parent’s Voting Stock of a plan for the liquidation or dissolution of Parent. Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control under clause (1),
(2) or (5) above if: (i) Parent becomes a direct or indirect wholly-owned Subsidiary of a holding company or a holding company becomes the successor to Parent under Section 10.2 of the Base Indenture pursuant to a transaction
that is permitted under Section 10.1 of the Base Indenture and (ii) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction (or a series of related transactions) are

  
 5 

Second Supplemental Indenture 

 
the same or substantially the same (and hold in the same or substantially the same proportions) as the holders of Parent’s Voting Stock immediately prior to that transaction. The term
“person,” as used in this definition, means any Person and any two or more Persons as provided in Section 13(d)(3) of the Exchange Act. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event; provided, however, that a Change of Control Triggering Event otherwise arising by
virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a Change of Control if the Rating Agency or Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce
or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control
(whether or not the applicable Change of Control shall have occurred at the time of the purported Change of Control Triggering Event). Unless at least two of the three Rating Agencies are providing a rating for the Offered Securities at the
commencement of any period referred to in the definition of “Rating Event”, a Rating Event will be deemed to have occurred during such period. Notwithstanding the foregoing, no Change of Control Triggering Event will be deemed to have
occurred in connection with any particular Change of Control unless and until such Change of Control has actually been consummated. 
 “Consolidated Net Tangible Assets” at any date means Consolidated Net Worth less all intangible assets appearing on the most recently prepared consolidated balance sheet of Parent and its
Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting principles as in effect on the date of the consolidated balance sheet. “Intangible
assets” means the amount (if any) stated under the heading “Goodwill and Other Intangible assets, net” or under any other heading of intangible assets separately listed, in each case on the face of such consolidated balance sheet.

 “Consolidated Net Worth” at any date means total assets less total liabilities, in each case appearing on
the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting principles as in effect on
the date of the consolidated balance sheet. 
 “Consolidated Total Assets” at any date means the total assets
appearing on the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting principles as
in effect on the date of the consolidated balance sheet. 
 “Continuing Director” means, as of any date after
the completion of the Distribution and the Merger, any member of the Board of Directors of Parent who: 
 (1) was
a member of such Board of Directors immediately after the completion of the Distribution and the Merger; or 

(2) was nominated for election, elected or appointed to such Board of Directors pursuant to a proposal by a majority of
the Continuing Directors who were members of 

  
 6 

Second Supplemental Indenture 

 
such Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of a proxy statement of Parent in which such member was named as a
nominee for election as a director, without objection to such nomination). 
 “Distribution” means the pro-rata
distribution of all of the outstanding common stock of Parent to the shareholders of Tyco International Ltd. in the form of a special dividend out of Tyco International Ltd.’s qualifying surplus. 

“Escrow Account” means the 2022 Notes Escrow Account established pursuant to the Escrow Agreement. 

“Escrow Agreement” means the Escrow Agreement, dated as of September 24, 2012, by and among the Company, Parent,
Pentair, the Trustee and JPMorgan Chase Bank, NA, as Escrow Agent. 
 “Escrow Agent” means JPMorgan Chase Bank,
NA, as escrow agent under the Escrow Agreement. 
 “Fitch” means Fitch Inc., and its successors. 

“Funded Indebtedness” means any Indebtedness maturing by its terms more than one year from the date of the determination
thereof, including any Indebtedness renewable or extendible at the option of the obligor to a date later than one year from the date of the determination thereof. 
 “Indebtedness” means, without duplication, the principal amount (such amount being the face amount or, with respect to original issue discount bonds or zero coupon notes, bonds or
debentures or similar securities, determined based on the accreted amount as of the date of the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent prepared in accordance with
United States generally accepted accounting principles as in effect on the date of such consolidated balance sheet) of (i) all obligations for borrowed money, (ii) all obligations evidenced by debentures, notes or other similar
instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments or reimbursement obligations with respect thereto (such instruments to constitute Indebtedness only to the extent that the
outstanding reimbursement obligations in respect thereof are collateralized by cash or cash equivalents reflected as assets on a balance sheet prepared in accordance with United States generally accepted accounting principles), (iv) all
obligations as lessee to the extent capitalized in accordance with United States generally accepted accounting principles in effect on the date of this Second Supplemental Indenture and (v) all Indebtedness of others consolidated in such
balance sheet that is guaranteed by the Company, Parent or any of their respective Subsidiaries or for which the Company, Parent or any of their respective Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness
of, or to supply funds or to invest in, others). 
 “Investment Grade Rating” means a rating equal to or higher
than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the
Company. 

  
 7 

Second Supplemental Indenture 

 “Issue Date” means the date on which the Offered Securities are originally
issued. 
 “Merger” means the merger of Panthro Merger Sub with and into Pentair with Pentair surviving the
merger and all transactions contemplated by the Merger Agreement, except the Distribution, and all other actions or matters necessary or appropriate to give effect to the Merger Agreement and the transactions contemplated thereby, except the
Distribution. 
 “Merger Agreement” means the Merger Agreement, dated as of March 27, 2012, among Tyco,
Parent, Panthro Acquisition, Panthro Merger Sub and Pentair, as amended from time to time. 
 “Moody’s”
means Moody’s Investors Service, Inc., and its successors. 
 “Non-Recourse Indebtedness” means
Indebtedness upon the enforcement of which recourse may be had by the holder(s) thereof only to identified assets of Parent or the Company or any Subsidiary of Parent or the Company and not to Parent or the Company or any Subsidiary of Parent or the
Company personally (subject to, for the avoidance of doubt, customary exceptions contained in non-recourse financings to the non-recourse nature of the obligations thereunder). 

“Panthro Acquisition” refers to Panthro Acquisition Co., a Delaware corporation and currently a wholly-owned Subsidiary
of Parent. 
 “Panthro Merger Sub” refers to Panthro Merger Sub, Inc., a Minnesota corporation and currently a
wholly-owned Subsidiary of Panthro Acquisition. 
 “Principal Property” means any manufacturing, processing or
assembly plant, warehouse or distribution facility, office building or parcel of real property of Parent or any of its Subsidiaries that is located in the United States of America, Canada or the Commonwealth of Puerto Rico and (A) is owned by
Parent or any Subsidiary of Parent immediately after the completion of the Spin-Off and the Merger, (B) the initial construction of which has been completed after the date hereof, or (C) is acquired after the date hereof, in each case,
other than any such plants, facilities, warehouses, office buildings, parcels or portions thereof, that (i) in the opinion of the Board of Directors of Parent, are not collectively of material importance to the total business conducted by
Parent and its Subsidiaries as an entirety, or (ii) has a net book value (excluding any capitalized interest expense), immediately after completion of the Spin-Off and the Merger in the case of clause (A) of this definition, on the date of
completion of the initial construction in the case of clause (B) of this definition or on the date of acquisition in the case of clause (C) of this definition, of less than 1.0% of Consolidated Net Tangible Assets on the consolidated
balance sheet of Parent as of the applicable date. 
 “Purchase Agreement” means the Purchase Agreement, dated
September 10, 2012, among the Company, Parent, Pentair and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and U.S. Bancorp Investments, Inc., as representatives of the purchasers named in Schedule I
thereto. 
 “Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any of
Fitch, Moody’s or S&P ceases to rate the Offered Securities or fails to make a rating of the Offered 

  
 8 

Second Supplemental Indenture 

 
Securities publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F)
under the Exchange Act, selected by the Company (as certified by a resolution of the Company’s Board of Directors) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be. 

“Rating Event” means the rating on the Offered Securities is lowered by at least two of the three Rating Agencies and
such Offered Securities are rated below an Investment Grade Rating by at least two of the three Rating Agencies on any day during the period (which period shall be extended so long as the rating of such Offered Securities is under publicly announced
consideration for a possible downgrade by any of the Rating Agencies) commencing on the date of Parent’s first public notice of the occurrence of a Change of Control or Parent’s intention to effect a Change of Control and ending 60 days
following consummation or abandonment of such Change of Control. 
 “Restricted Subsidiary” means any
Subsidiary of Parent that owns or leases a Principal Property. 
 “Sale and Lease-Back Transaction” means an
arrangement with any Person providing for the leasing by Parent or a Restricted Subsidiary of any Principal Property whereby such Principal Property has been owned and in full operation for more than 180 days and has been or is to be sold or
transferred by Parent or a Restricted Subsidiary to such Person other than Parent, the Company or any of their respective Subsidiaries; provided, however, that the foregoing shall not apply to any such arrangement involving a lease for a term,
including renewal rights, for not more than three years. 
 “Spin-Off” refers to the transfer to Parent of Tyco
International Ltd.’s flow control business, the Distribution and all other transactions required under the Separation and Distribution Agreement, dated as of March 27, 2012, among Tyco International Ltd., Parent and The ADT Corporation, as
amended from time to time (the “Separation and Distribution Agreement”). 
 “S&P” means
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its successors. 

“Tyco Credit Facilities” means, collectively: (i) the Five-Year Senior Unsecured Credit Agreement, dated as of
June 22, 2012 among Tyco International Finance S.A., Tyco International Ltd., the lenders party thereto and Citibank, N.A., as Administrative Agent, as supplemented by the Subsidiary Guaranty, dated as of September 21, 2012, made by the
Company and Parent in favor of Citibank, N.A., as Administrative Agent; and (ii) the Five-Year Senior Unsecured Credit Agreement, amended as of June 22, 2012 and originally dated April 25, 2007, among Tyco International Finance S.A.,
Tyco International Ltd., the lenders party thereto and Citibank, N.A., as Administrative Agent, as supplemented by the Subsidiary Guaranty, dated as of September 21, 2012, made by the Company and Parent in favor of Citibank, N.A., as
Administrative Agent. 

  
 9 

Second Supplemental Indenture 

 “Tyco Administrative Agent” means the person named as the
“Administrative Agent” under the Tyco Credit Facilities. 
 “Voting Stock” means, with respect to any
specified “Person” as of any date, the capital stock of such Person that is at the time entitled to vote generally in the election of the board of directors of such Person. 

 

	Section 1.3.	Additional Covenants. 

The following additional covenants shall apply with respect to the Offered Securities so long as any of the Offered Securities remain
Outstanding (but subject to defeasance, as provided in the Base Indenture and Section 15 of this Second Supplemental Indenture): 
 (1) Limitation on Liens. 
 Neither the Company nor Parent will, and neither will
permit, any Restricted Subsidiary to, issue, assume or guarantee any Indebtedness that is secured by a mortgage, pledge, security interest, lien or similar encumbrance (each a “lien”) upon any property that at the time of such
issuance, assumption or guarantee constitutes a Principal Property, or any shares of stock of or Indebtedness issued by any Restricted Subsidiary, whether now owned or hereafter acquired, without effectively providing that, for so long as such lien
shall continue in existence with respect to such secured Indebtedness, the Offered Securities (together with, if the Company shall so determine, any other Indebtedness of the Company ranking equally with the Offered Securities, it being understood
that for purposes hereof, Indebtedness which is secured by a lien and Indebtedness which is not so secured shall not, solely by reason of such lien, be deemed to be of different ranking) shall be equally and ratably secured by a lien ranking ratably
with or equal to (or at the Company’s option prior to) such secured Indebtedness; provided, however, that the foregoing covenant shall not apply to: 
 (a) liens existing on the date the Offered Securities are first issued; 
 (b) liens on the stock, assets or Indebtedness of a Person existing at the time such Person becomes a Restricted Subsidiary, unless created in contemplation of such Person becoming a Restricted
Subsidiary; 
 (c) liens on any assets or Indebtedness of a Person existing at the time such Person is merged
with or into or consolidated with or acquired by the Company, Parent or a Restricted Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or firm as an entirety or substantially as an entirety by the
Company, Parent or any Restricted Subsidiary; 
 (d) liens on any Principal Property existing at the time of
acquisition thereof by the Company, Parent or any Restricted Subsidiary, or liens to secure the payment of the purchase price of such Principal Property by the Company, Parent or any Restricted Subsidiary, or to secure any Indebtedness incurred,
assumed or guaranteed by the Company, Parent or a Restricted Subsidiary for the purpose of financing all or any part of the purchase price of such Principal Property or improvements or construction thereon, which Indebtedness is incurred, assumed or
guaranteed prior to, at the time of or within 

  
 10 

Second Supplemental Indenture 

 
180 days after such acquisition (or in the case of real property, completion of such improvement or construction or commencement of full operation of such property, whichever is later);
provided, however, that in the case of any such acquisition, construction or improvement, the lien shall not apply to any Principal Property theretofore owned by the Company, Parent or a Restricted Subsidiary, other than the Principal
Property so acquired, constructed or improved (and accessions thereto and improvements and replacements thereof and the proceeds of the foregoing); 
 (e) liens securing Indebtedness owing by any Restricted Subsidiary to the Company, Parent or a Subsidiary thereof or by the Company to Parent; 

(f) liens in favor of the United States or any State thereof, or any department, agency or instrumentality or political
subdivision of the United States of America or any State thereof, or in favor of any other country or any political subdivision thereof, to secure partial, progress, advance or other payments pursuant to any contract, statute, rule or regulation or
to secure any Indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case of real property, the cost of construction or improvement) of the Principal Property subject to such liens
(including liens incurred in connection with pollution control, industrial revenue or similar financings); 
 (g)
pledges, liens or deposits under workers’ compensation or similar legislation, and liens thereunder that are not currently dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which
the Company, Parent or any Restricted Subsidiary is a party, or to secure the public or statutory obligations of the Company, Parent or any Restricted Subsidiary, or in connection with obtaining or maintaining self-insurance, or to obtain the
benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to secure surety, performance, appeal or customs bonds to which the Company, Parent or any Restricted
Subsidiary is a party, or in litigation or other proceedings in connection with the matters heretofore referred to in this clause, such as interpleader proceedings, and other similar pledges, liens or deposits made or incurred in the ordinary course
of business; 
 (h) liens created by or resulting from any litigation or other proceeding that is being contested
in good faith by appropriate proceedings, including liens arising out of judgments or awards against the Company, Parent or any Restricted Subsidiary with respect to which the Company, Parent or such Restricted Subsidiary in good faith is
prosecuting an appeal or proceedings for review or for which the time to make an appeal has not yet expired; or final unappealable judgment liens which are satisfied within 15 days of the date of judgment; or liens incurred by the Company, Parent or
any Restricted Subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other proceeding to which the Company, Parent or such Restricted Subsidiary is a party, provided that (x) in the case of liens arising
out of judgments or awards, the enforcement of such liens is effectively stayed and (y) the aggregate amount secured by all such liens does not at any time exceed the greater of (i) $25,000,000 or (ii) 0.5% of Consolidated Total
Assets; 

  
 11 

Second Supplemental Indenture 

 (i) liens for taxes or assessments or governmental charges or levies not yet
due or delinquent; or that can thereafter be paid without penalty, or that are being contested in good faith by appropriate proceedings; landlord’s liens on property held under lease; and any other liens or charges incidental to the conduct of
the business of the Company, Parent or any Restricted Subsidiary, or the ownership of their respective assets, that were not incurred in connection with the borrowing of money or the obtaining of advances or credit and that, in the opinion of the
Board of Directors of Parent, do not materially impair the use of such assets in the operation of the business of the Company, Parent or such Restricted Subsidiary or the value of such Principal Property for the purposes of such business;

 (j) liens to secure the Company’s, Parent’s or any Restricted Subsidiary’s obligations under
agreements with respect to spot, forward, future and option transactions, entered into in the ordinary course of business; 
 (k) liens not permitted by the foregoing clauses (a) to (j), inclusive, if at the time of, and upon giving effect to, the creation or assumption of any such lien, the aggregate amount of all
outstanding Indebtedness of the Company, Parent and all Restricted Subsidiaries (without duplication) secured by all such liens not so permitted by the foregoing clauses (a) through (j), inclusive, together with the Attributable Debt in respect
of Sale and Lease-Back Transactions permitted by paragraph (a) under subsection (2) below, do not exceed an amount equal to 15% of Consolidated Net Tangible Assets; and 

(l) any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part, of any
lien referred to in the foregoing clauses (a) to (k), inclusive; provided, however, that the principal amount of Indebtedness secured thereby (except to the extent otherwise excepted under clauses (a) through (k)) shall not exceed the
principal amount of Indebtedness so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the assets (or any replacements therefor and products and
proceeds thereof) that secured the lien so extended, renewed or replaced (plus improvements and construction on real property). 

(2) Limitation on Sale and Lease-Back Transactions. 
 Neither the Company nor Parent will, and neither will permit any Restricted Subsidiary to, enter into any Sale and Lease-Back Transaction (other than with Parent, the Company and/or one or more
Subsidiaries of Parent) unless: 
 (a) the Company, Parent or such Restricted Subsidiary, at the time of entering
into such Sale and Lease-Back Transaction, would be entitled to incur Indebtedness secured by a lien on the Principal Property to be leased in an amount at least equal to the Attributable Debt in respect of such Sale and Lease-Back Transaction,
without equally and ratably securing the Offered Securities pursuant to Section 1.3(1) above; or 

  
 12 

Second Supplemental Indenture 

 (b) the direct or indirect proceeds of the sale of the Principal Property to
be leased are at least equal to the fair value of such Principal Property, as determined by Parent’s Board of Directors, and an amount equal to the net proceeds from the sale of the property or assets so leased is applied, within 180 days of
the effective date of any such Sale and Lease-Back Transaction, to the purchase or acquisition (or, in the case of real property, commencement of the construction) of property or assets or to the retirement (other than at maturity or pursuant to a
mandatory sinking fund or mandatory redemption provision) of Securities, or of Funded Indebtedness of Parent or a consolidated Subsidiary ranking on a parity with or senior to the Securities; provided that there shall be credited to the amount of
net worth proceeds required to be applied pursuant to this clause (b) an amount equal to the sum of (i) the principal amount of Securities delivered within 180 days of the effective date of such Sale and Lease-Back Transaction to the
Trustee for retirement and cancellation and (ii) the principal amount of other Funded Indebtedness voluntarily retired by Parent within such 180-day period, excluding retirements of Securities and other Funded Indebtedness as a result of
conversions or pursuant to mandatory sinking fund or mandatory prepayment provisions. 
 (3) Change of Control Triggering Event.

 (a) If a Change of Control Triggering Event occurs after the Escrow Release Date (as defined in Section 1.5(2)), unless
the Company has exercised its option to redeem the Offered Securities, it shall be required to make an offer (a “Change of Control Offer”) to each Holder of the Offered Securities to repurchase, at the Holder’s election, all or
any part (equal to $1,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Offered Securities on the terms set forth herein. In a Change of Control Offer, the Company shall be required to offer payment in cash equal to 101%
of the aggregate principal amount of Offered Securities repurchased, plus accrued and unpaid interest, if any, on the Offered Securities repurchased to, but excluding, the date of repurchase (a “Change of Control Payment”). Within
30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice shall be
mailed to the Trustee and to the Holders of the Offered Securities describing in reasonable detail the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Offered Securities on the
date specified in the notice, which date shall, except as described in the immediately following sentence and other than as required by law, be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change
of Control Payment Date”). The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the Change
of Control Payment Date. 
 (b) In order to accept the Change of Control Offer, the Holder must deliver (or otherwise comply
with alternative instructions in accordance with the procedures of the Depositary) to the paying agent, at least five Business Days prior to the Change of Control Payment Date, its Offered Security together with the form entitled “Election
Form” (which form is contained in the form of note attached hereto as Exhibit A) duly completed, or a telegram, telex, facsimile transmission or a letter from a member of a national securities exchange, or the Financial Industry Regulatory
Authority, Inc. or a commercial bank or trust company in the United States setting forth: 
 (i) the name of the Holder of such
Offered Security; 

  
 13 

Second Supplemental Indenture 

 (ii) the principal amount of such Offered Security; 

(iii) the principal amount of such Offered Security to be repurchased; 

(iv) the certificate number or a description of the tenor and terms of such Offered Security; 

(v) a statement that the Holder is accepting the Change of Control Offer; and 

(vi) a guarantee that such Offered Security, together with the form entitled “Election Form” duly completed, will be received
by the paying agent at least five Business Days prior to the Change of Control Payment Date. 
 (c) Any exercise by a Holder of
its election to accept the Change of Control Offer shall be irrevocable. The Change of Control Offer may be accepted for less than the entire principal amount of an Offered Security, but in that event the principal amount of such Offered Security
remaining outstanding after repurchase must be equal to $2,000 or an integral multiple of $1,000 in excess thereof. 
 (d) On
the Change of Control Payment Date, the Company shall, to the extent lawful: 
 (i) accept for payment all Offered Securities or
portions of such Offered Securities properly tendered pursuant to the Change of Control Offer; 
 (ii) deposit with the paying
agent an amount equal to the Change of Control Payment in respect of all Offered Securities or portions of Offered Securities properly tendered; and 
 (iii) deliver or cause to be delivered to the Trustee the Offered Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Offered Securities or
portions of Offered Securities being repurchased. 
 (e) The Company shall not be required to make a Change of Control Offer
upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party purchases all Offered
Securities properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Offered Securities if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the
Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event. 

(f) Notwithstanding the foregoing, Parent and the Company shall comply with the requirements of Rule 14e-1 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations thereunder to the extent those 

  
 14 

Second Supplemental Indenture 

 
laws and regulations are applicable in connection with the repurchase of the Offered Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any such
securities laws or regulations conflict with this Section 1.3(3), neither the Company nor Parent shall be deemed to have breached its obligations under this Section 1.3(3) by virtue of its compliance with such laws or regulations.

  

	Section 1.4	Additional Events of Default. 

 The following additional events shall be established and shall each constitute an “Event of Default” under Section 6.01(a) of the Base Indenture with respect to the Offered Securities so
long as any of the Offered Securities remain Outstanding: 
 (10) an event of default shall happen and be continuing with respect
to any Indebtedness (other than Non-Recourse Indebtedness) of the Company, Parent or any Restricted Subsidiary under any indenture or other instrument evidencing or under which the Company, Parent or any Restricted Subsidiary shall have a principal
amount outstanding (such amount with respect to original issue discount bonds or zero coupon notes, bonds or debentures or similar securities based on the accreted amount determined in accordance with United States generally accepted accounting
principles and as of the date of the most recently prepared consolidated balance sheet of the Company, Parent or any Restricted Subsidiary, as the case may be) in excess of $100,000,000, and such event of default shall involve the failure to pay the
principal of such Indebtedness on the final maturity date thereof after the expiration of any applicable grace period with respect thereto, or such Indebtedness shall have been accelerated so that the same shall have become due and payable prior to
the date on which the same would otherwise have become due and payable, and such acceleration shall not be rescinded or annulled within 30 days after notice thereof shall have been given to the Company and Parent by the Trustee, or to the Company,
Parent and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Securities of such series; provided however that: 
 (i) if such event of default under such indenture or instrument shall be remedied or cured by the Company or Parent or waived by the requisite holders of such Indebtedness, then the Event of Default
hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the Securityholders; and 

(ii) subject to the provisions of Sections 7.01 and 7.02 of the Base Indenture, the Trustee shall not be charged with knowledge of
any such event of default unless written notice thereof shall have been given to the Trustee by the Company or Parent, as the case may be, by the holder or an agent of the holder of any such Indebtedness, by the trustee then acting under any
indenture or other instrument under which such default shall have occurred, or by the Holders of not less than 25% in the aggregate principal amount of Outstanding Offered Securities. 

  
 15 

Second Supplemental Indenture 

 (11) at any time prior to the Redemption Trigger Date (as defined in Section 1.6(1)),
the Company or Parent defaults in the performance of, or breaches, any of its respective covenants or agreements in the Escrow Agreement, or the Escrow Agreement ceases to be in full force and effect (other than in accordance with its terms) or the
Company or Parent asserts the invalidity thereof. 
  

	Section 1.5	Escrow. 

 (1) On the Issue
Date, (i) the Company shall deposit (or cause to be deposited) into the Escrow Account the aggregate amount paid for the Offered Securities and the related guarantees, net of the initial purchasers’ discount and commissions, pursuant to
Section 3 of the Purchase Agreement (the “2022 Notes Proceeds”) and (ii) Pentair will deposit into the Escrow Account an amount equal to: (x) the Special Mandatory Redemption Price (as defined in Section 1.6(3))
that would be payable pursuant to Section 1.6(3) if the Special Mandatory Redemption Date were February 8, 2013, less (y) the 2022 Notes Proceeds (the “Pentair Deposit”). 

(2) Upon the satisfaction of all of the following conditions (collectively, the “Escrow Release Conditions”), and only
upon the satisfaction of the Escrow Release Conditions, the Company, Parent and Pentair shall execute a Notice of Distribution and Merger, in the form set forth in Exhibit A to the Escrow Agreement, or such other notice as shall be mutually agreed
with the Escrow Agent, to cause (x) the 2022 Notes Proceeds (together with any interest thereon or proceeds or investment income in respect thereof) to be released to the Company and (y) the Pentair Deposit (together with any interest
thereon or proceeds or investment income in respect thereof) to be released to Pentair: 
 (a) the Distribution has been
completed in all material respects in accordance with the Separation and Distribution Agreement; 
 (b) the Merger has been
completed in all material respects in accordance with the Merger Agreement; 
 (c) the Tyco Administrative Agent shall have
provided a written release of the Company’s and Parent’s guarantees of the Tyco Credit Facilities; and 
 (d) no Event
of Default has occurred and is continuing. 
 Satisfaction of certain of the Escrow Release Conditions may occur simultaneous
with or immediately after the release of funds from the Escrow Account, but the funds will be released upon the certification by the Issuer, the Guarantor and Pentair to the Escrow Agent that such Escrow Release Conditions will be satisfied
simultaneous with or immediately after the release of funds. The date on which the Escrow Release Conditions are satisfied or deemed satisfied is referred to as the “Escrow Release Date”. 

 

	Section 1.6	Special Mandatory Redemption. 

 (1) If (i) the Escrow Release Date does not occur on or before February 1, 2013 or (ii) if either the Merger or the Spin-Off is terminated or abandoned pursuant to the terms of the Merger
Agreement or the Separation and Distribution Agreement, as applicable (the earlier of such dates, the “Redemption Trigger Date”), then: 
 (a) the Company will be required to effect the redemption of the Offered Securities in the manner set forth in this Section 1.6 (the “Special Mandatory Redemption”); 

  
 16 

Second Supplemental Indenture 

 (b) if either the Merger or the Spin-Off is terminated or abandoned as set
forth in clause (ii) above, the Company, Parent and Pentair shall execute a Notice of Termination, in the form set forth in Exhibit B to the Escrow Agreement, or such other notice as shall be mutually agreed with the Escrow Agent; 

(c) the Company, Parent and Pentair shall cause all funds in the Escrow Account to be disbursed to the Trustee for the
purpose of effecting the Special Mandatory Redemption and paying the Special Mandatory Redemption Price; and 

(d) the Company, Parent and Pentair shall make all commercially reasonable efforts to cause any funds disbursed from the
Escrow Account to the Trustee in excess of the Special Mandatory Redemption Price to be released to Pentair on or promptly after the Special Mandatory Redemption Date. 
 (2) On the Business Day after the Redemption Trigger Date, the Company will deliver to the Trustee a redemption notice setting forth the Special Mandatory Redemption Date (as defined below) and the
Special Mandatory Redemption Price (as defined below). The Trustee will promptly forward such notice to the Holders of the Offered Securities. 
 (3) On the fifth Business Day (the “Special Mandatory Redemption Date”) after the Redemption Trigger Date, the Company shall redeem the Offered Securities at a redemption price (the
“Special Mandatory Redemption Price”) in cash equal to the sum of (i) 101% of the aggregate principal amount of the Offered Securities to be redeemed, plus (ii) accrued and unpaid interest, if any, thereon to, but
excluding, the Special Mandatory Redemption Date. The funds disbursed from the Escrow Account to the Trustee in the manner set forth in Section 1.6(1)(c) shall be used by the Trustee to fund the Special Mandatory Redemption Price. 

(4) Interest on the Offered Securities shall cease to accrue on and after the Special Mandatory Redemption Date, unless the Company shall
default in the payment of the Special Mandatory Redemption Price. 
  

	Section 1.7	Additional Changes to the Base Indenture. 

 (1) For purposes of applying, and determining compliance with, the covenants and other obligations of the Company and Parent set forth in the Base Indenture and this Second Supplemental Indenture,
including the covenants set forth in Article IV and Article X of the Base Indenture and Section 1.3 of this Second Supplemental Indenture, the Spin-Off and the Merger shall be deemed to have occurred immediately prior to the Issue Date.

  
 17 

Second Supplemental Indenture 

 (2) Section 9.01 of the Base Indenture is hereby deleted with respect to the Offered
Securities and replaced with the following: 
 Section 9.01 Supplemental Indentures Without the Consent of
Securityholders. 
 In addition to any supplemental indenture otherwise authorized by this Indenture, Parent,
the Company and the Trustee from time to time and at any time may enter into an indenture or indentures supplemental hereto which shall conform to the provisions of the Trust Indenture Act as then in effect or amend the Escrow Agreement in
accordance with its provisions, without the consent of the holders of any series of Securities, for one or more of the following purposes: 
 (a) to cure any ambiguity, defect, or inconsistency herein or in the Securities of any series or the Escrow Agreement, including making any such changes as are required for this Indenture to comply with
the Trust Indenture Act; 
 (b) to add an additional obligor on the Securities, to add a guarantor of any
outstanding series of Securities or to evidence the succession of another Person to Parent or the Company, or successive successions, and the assumption by the successor Person of the covenants, agreements and obligations of Parent or the Company,
as the case may be, pursuant to Article X; 
 (c) to provide for uncertificated Securities in addition to or in
place of certificated Securities; 
 (d) to add to the covenants of the Company for the benefit of the holders of
any outstanding series of Securities (and if such covenants are to be for the benefit of less than all outstanding series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender
any right or power herein conferred upon Parent or the Company or conferred by the Escrow Agreement upon Parent or the Company; 
 (e) to add any additional Events of Default for the benefit of the holders of any outstanding series of Securities (and if such Events of Default are to be applicable to less than all outstanding series,
stating that such Events of Default are expressly being included solely to be applicable to such series); 
 (f)
to change or eliminate any of the provisions of this Indenture, provided that any such change or elimination shall not become effective with respect to any outstanding Security of any series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision; 
 (g) to secure the Securities of any series or
any related Guarantee; 

  
 18 

Second Supplemental Indenture 

 (h) to make any other change that does not adversely affect the rights of
any Securityholder of Outstanding Securities of the affected series of Securities in any material respect; 
 (i)
to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.01, to provide which, if any, of the covenants of the Company shall apply to such series, to provide which
of the Events of Default shall apply to such series, to name one or more guarantors and provide for guarantees of such series of Securities, to provide for the terms and conditions upon which the Guarantee by Parent or another guarantor of such
series of Securities may be released or terminated, or to define the rights of the holders of such series of Securities; 
 (j) to issue additional Securities of any series; provided that such additional Securities have the same terms as, and be deemed part of the same series as, the applicable series of Securities issued
hereunder to the extent required by Section 2.01(b); 
 (k) to evidence and provide for the acceptance of
appointment hereunder by a successor Trustee with respect to the Securities of one or more series or by a successor Escrow Agent under the Escrow Agreement and to add to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trust hereunder by more than one Trustee; 
 (l) to
supplement any of the provisions herein to permit or facilitate the defeasance and discharge of the Securities of any series in a manner consistent with the provisions described in Section 11.03; provided, however, that any such action shall
not adversely affect the interest of the holders of Securities of such series or any other series in any material respect; or 
 (m) to conform the text of this Indenture, any supplemental indenture or any Security to the description thereof in any prospectus, prospectus supplement or offering circular or memorandum or supplement
thereto with respect to the offer and sale of Securities of any series, to the extent that such description is inconsistent with a provision in this Indenture, any supplemental indenture or Security, as provided in an Officer’s Certificate.

 Upon the request of the Company, accompanied by Board Resolutions authorizing the execution of any such
supplemental indenture, and upon receipt by the Trustee of the documents described in Section 9.05, the Trustee shall join with Parent and the Company in the execution of any such supplemental indenture, and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee 

  
 19 

Second Supplemental Indenture 

 
shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 

Any supplemental indenture authorized by the provisions of this Section 9.01 may be executed by Parent, the Company
and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02. 
 (3) Section 11.03(c)(iii) of the Base Indenture is hereby deleted with respect to the Offered Securities and replaced with the following: 

(iii) no Event of Default under clauses (1), (2), (5), (6), (7), (8) or (11) of Section 6.01(a) shall have occurred and be
continuing, and no event which with notice or lapse of time or both would become such an Event of Default shall have occurred and be continuing, on the date of such deposit; 
 ARTICLE II 
 MISCELLANEOUS 

 

	Section 2.1.	Definitions. 

 Capitalized
terms used but not defined in this Second Supplemental Indenture shall have the meanings ascribed thereto in the Base Indenture. 
  

	Section 2.2.	Confirmation of Indenture. 

The Base Indenture, as supplemented and amended by this Second Supplemental Indenture, is in all respects ratified and confirmed, and the
Base Indenture, this Second Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument. 
  

	Section 2.3.	Concerning the Trustee. 

In carrying out the Trustee’s responsibilities hereunder, the Trustee shall have all of the rights, protections and immunities which
it possesses under the Indenture. The recitals contained herein and in the Offered Securities, except the Trustee’s certificate of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for
their correctness. The Trustee shall not be responsible for and makes no representations as to (i) the validity or sufficiency of this Second Supplemental Indenture or of the Offered Securities, (ii) the proper authorization hereof by
Parent and the Company by action or otherwise, (iii) the due execution hereof by Parent and the Company or (iv) the consequences of any amendment herein provided for. The Trustee shall not be accountable for the use or application by the
Company of the Offered Securities or the proceeds thereof. 

  
 20 

Second Supplemental Indenture 

	Section 2.4.	Governing Law. 

 This
Second Supplemental Indenture and the Offered Securities shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to
conflicts of law principles that would require the application of any other law. This Second Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of this Second Supplemental Indenture and shall,
to the extent applicable, be governed by such provisions. 
  

	Section 2.5.	Separability. 

 In case
any one or more of the provisions contained in this Second Supplemental Indenture or in the Offered Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Second Supplemental Indenture or of such Offered Securities, but this Second Supplemental Indenture and such Offered Securities shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein or therein. 
  

	Section 2.6.	Counterparts. 

 This
Second Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Second Supplemental
Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Second Supplemental Indenture as to the parties hereto and may be used in lieu of the original Second Supplemental Indenture
for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 
  

	Section 2.7	No Benefit. 

 Nothing in
this Second Supplemental Indenture, express or implied, shall give to any Person other than the parties hereto and their successors or assigns, and the Holders of the Offered Securities, any benefit or legal or equitable rights, remedy or claim
under this Second Supplemental Indenture or the Base Indenture. 
  

	Section 2.8	Amendments and Supplemental Indentures. 

 This Second Supplemental Indenture and the Offered Securities are subject to the provisions regarding supplemental indentures and amendments set forth in Article IX of the Base Indenture, as amended by
this Second Supplemental Indenture. 
  

	Section 2.9	Legal, Valid and Binding Obligation. 

 Parent and the Company hereby represent and warrant that, assuming the due authorization, execution and delivery of this Second Supplemental Indenture by the Trustee, this Second Supplemental Indenture is
the legal, valid and binding obligation of Parent and the Company enforceable against Parent and the Company in accordance with its terms, subject to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or
affecting the enforcement of creditors’ rights and to general equity principles. 

  
 21 

Second Supplemental Indenture 

 [Signature Page Follows] 

  
 22 

Second Supplemental Indenture 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be
duly executed all as of the day and year first above written. 
  

			
	TYCO FLOW CONTROL INTERNATIONAL FINANCE S.A., as Issuer
		
	By:	 	 /s/ Andrea Goodrich

		 	 Name: Andrea Goodrich

		 	 Title:  Managing Director

		
	By:	 	 /s/ Peter Schieser

		 	 Name: Peter Schieser

		 	 Title:  Managing Director

	
	PENTAIR LTD., as Parent
		
	By:	 	 /s/ Mark Armstrong

		 	 Name: Mark Armstrong

		 	 Title:   Director

		
	By:	 	 /s/ Andrea Goodrich

		 	 Name: Andrea Goodrich

		 	 Title:   Director

	
	PENTAIR, INC.
		
	By:	 	 /s/ Michael G. Meyer

		 	 Name: Michael G. Meyer

		 	 Title:   Vice President of Treasury and Tax

	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 /s/ Richard Prokosch

		 	 Name: Richard Prokosch

		 	 Title:   Vice President

 EXHIBIT A 
 FORM OF 3.150% NOTES 
 [Insert the Private Placement Legend and/or the Global Security
legend, as applicable] 
 3.150% NOTES DUE 2022 

 

			
	No. [        ]	  	$[            ]
	CUSIP No. [                ]	  	

 TYCO FLOW CONTROL INTERNATIONAL FINANCE S.A. 

29 Avenue de la Porte Neuve 
 L-2227 Luxembourg 
 R.C.S. B 166305 

promises to pay to [        ] or registered assigns, the principal sum of
[            ] Dollars on September 15, 2022. 
 Interest Payment Dates:
March 15 and September 15 
 Record Dates: March 1 and September 1 

Each holder of this Security (as defined below), by accepting the same, agrees to and shall be bound by the provisions hereof and of the
Indenture described herein, and authorizes and directs the Trustee described herein on such holder’s behalf to be bound by such provisions. Each holder of this Security hereby waives all notice of the acceptance of the provisions contained
herein and in the Indenture and waives reliance by such holder upon said provisions. 
 This Security shall not be entitled to
any benefit under the Indenture, or be valid or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee. The provisions of this Security are continued on the reverse
side hereof, and such continued provisions shall for all purposes have the same effect as though fully set forth at this place. 
 IN WITNESS
WHEREOF, the Company has caused this instrument to be signed in accordance with Section 2.04 of the Base Indenture. 
 Date:
[                    ] 
  

	
	TYCO FLOW CONTROL INTERNATIONAL FINANCE S.A.
	
	  

	
	 Name:

Title:

	
	  

  
 A-1

 
	
	 [If second signature is applicable]
  

Name:
 Title:

  
 A-2

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Authorized Signatory
		
	Dated:	 	

  
 A-3

 GUARANTEE 
 For value received, PENTAIR LTD. hereby absolutely, unconditionally and irrevocably guarantees (i) to the holder of this Security the payment of principal of, premium, if any, and interest and any
Additional Amounts, if any, on, the Security upon which this Guarantee is set forth in the amounts and at the time when due and payable whether by declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of such
Security, if lawful, to the holder of such Security and the Trustee on behalf of the Holders, and (ii) to the Trustee all amounts owed to the Trustee under the Indenture, in each case in accordance with and subject to the terms and limitations
of such Security and Article XV of the Base Indenture. This Guarantee will not become effective until the Trustee or Authenticating Agent duly executes the certificate of authentication on this Security. This Guarantee shall be governed by and
construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof. 
 Dated: 

 

			
	PENTAIR LTD.
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-4

 TYCO FLOW CONTROL INTERNATIONAL FINANCE S.A. 

29 Avenue de la Porte Neuve 
 L-2227 Luxembourg 
 R.C.S. B 166305 

3.150% Notes due 2022 
 This security is one of a duly authorized series of debt securities of Tyco Flow Control International Finance S.A., a Luxembourg public limited liability company (société anonyme)
(the “Company”), issued or to be issued in one or more series under and pursuant to an Indenture for the Company’s unsubordinated debt securities, dated as of September 24, 2012 (the “Base Indenture”), duly executed and
delivered by and among the Company, Pentair Ltd. (“Parent”) and Wells Fargo Bank, National Association (the “Trustee”), as supplemented by the Second Supplemental Indenture, dated as of September 24, 2012 (the “Second
Supplemental Indenture”), by and among the Company, Parent, Pentair, Inc., a Minnesota corporation, and the Trustee. The Base Indenture as supplemented and amended by the Second Supplemental Indenture is referred to herein as the
“Indenture.” By the terms of the Base Indenture, the debt securities issuable thereunder are issuable in series that may vary as to amount, date of maturity, rate of interest and in other respects as provided in the Base Indenture. This
security is one of the series designated on the face hereof (individually, a “Security,” and collectively, the “Securities”), and reference is hereby made to the Indenture for a description of the rights, limitations of rights,
obligations, duties and immunities of the Trustee, the Company, Parent and the holders of the Securities (the “Securityholders”). Capitalized terms used herein and not otherwise defined shall have the meanings given them in the Base
Indenture or the Second Supplemental Indenture, as applicable. 
 1. Interest. The Company promises to pay interest
on the principal amount of this Security at an annual rate of 3.150%. The Company will pay interest semi-annually on March 15 and September 15 of each year (each such day, an “Interest Payment Date”). If any Interest Payment
Date, redemption date or maturity date of this Security is not a Business Day, then payment of interest or principal (and premium, if any) shall be made on the next succeeding Business Day with the same force and effect as if made on the date such
payment was due, and no interest shall accrue for the period after such date to the date of such payment on the next succeeding Business Day. Interest on the Securities will accrue from the most recent date to which interest has been paid or duly
provided for or, if no interest has been paid, from the date of issuance; provided that, if there is no existing Default in the payment of interest, and if this Security is authenticated between a regular record date referred to on the face hereof
and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; and provided, further, that the first Interest Payment Date shall be March 15, 2013. Interest will be calculated on the basis
of a 360-day year consisting of twelve 30-day months. 
 2. Method of Payment. The Company will pay interest on
the Securities (except defaulted interest), if any, to the persons in whose name such Securities are registered at the close of business on the regular record date referred to on the facing page of this Security for such interest installment. In the
event that the Securities or a portion thereof are called for redemption and the Redemption Date is subsequent to a regular record date with respect to any 

  
 A-5

 
Interest Payment Date and prior to such Interest Payment Date, interest on such Securities will be paid upon presentation and surrender of such Securities as provided in the Indenture. The
principal of and the interest on the Securities shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained for that purpose
in accordance with the Indenture. 
 3. Paying Agent and Registrar. Initially, Wells Fargo Bank, National
Association, the Trustee, will act as paying agent and Security Registrar. The Company may change or appoint any paying agent or Security Registrar without notice to any Securityholder. Parent, the Company or any of their Subsidiaries may act in any
such capacity. 
 4. Indenture. The terms of the Securities include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939 (“TIA”) as in effect on the date the Indenture is qualified. The Securities are subject to all such terms, and Securityholders are referred to the Indenture and TIA
for a statement of such terms. The Securities are unsecured general obligations of the Company and constitute the series designated on the face hereof as the “3.150% Notes due 2022”, initially limited to $550,000,000 in aggregate principal
amount. 
 The Company will furnish to any Securityholder upon written request and without charge a copy of the Base Indenture
and the Second Supplemental Indenture. Requests may be made to: Tyco Flow Control International Finance S.A., 29 Avenue de la Porte Neuve, L-2227 Grandy-Duchy of Luxembourg, Attention: The Managing Directors. 

5. Optional Redemption. The Securities will be subject to redemption at the option of the Company on any date prior to
the maturity date, in whole or from time to time in part, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), on written notice given to the
Securityholders thereof not less than 30 days nor more than 90 days prior to the date fixed for redemption in such notice (the “Redemption Date”). Prior to June 15, 2022, the Securities will be redeemable at a redemption price equal
to the greater of (i) 100% of the principal amount of such Securities to be redeemed and (ii) as determined by the Quotation Agent and delivered to the Trustee in writing, the sum of the present values of the remaining scheduled payments
of principal and interest thereon due on any date after the Redemption Date (excluding the portion of interest that will be accrued and unpaid to and including the Redemption Date) discounted from their scheduled date of payment to the Redemption
Date (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Redemption Treasury Rate plus 25 basis points, plus, in either the case of clause (i) or clause (ii), accrued and unpaid interest, if any, thereon to, but
excluding, the Redemption Date. On or after June 15, 2022, the Securities will be redeemable at a redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest thereon to, but
excluding, the Redemption Date. This Security is also subject to redemption to the extent provided in Article XIV of the Indenture. 
 If the giving of the notice of redemption is completed as provided in the Indenture, interest on such Securities or portions of Securities shall cease to accrue on and after the Redemption Date, unless
the Company shall default in the payment of any such redemption price and accrued interest with respect to any such Security or portion thereof. 

  
 A-6

 Except as otherwise expressly provided herein or in the Second Supplemental Indenture, the
Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Securities. 

6. Special Mandatory Redemption. The Securities are subject to redemption on the fifth Business Day (the “Special
Mandatory Redemption Date”) after the Redemption Trigger Date at a redemption price (the “Special Mandatory Redemption Price”) in cash equal to the sum of (i) 101% of the aggregate principal amount of the Securities to
be redeemed, plus (ii) accrued and unpaid interest, if any, thereon to, but excluding, the Special Mandatory Redemption Date. Interest on the Securities shall cease to accrue on and after the Special Mandatory Redemption Date, unless the
Company shall default in the payment of the Special Mandatory Redemption Price. 
 7. Change of Control Triggering
Event. If a Change of Control Triggering Event occurs after the Escrow Release Date, unless the Company has exercised its option to redeem this Security, it shall be required to make an offer to the holder of this Security to repurchase, at such
holder’s election, all or a part (equal to $1,000 or an integral multiple of $1,000 in excess thereof; provided that any remaining principal amount of this Security shall be at least the minimum authorized denomination thereof), of this
Security, in cash equal to 101% of the aggregate principal amount of this Security repurchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. Within 30 days following any Change of Control Triggering Event, or
at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control Triggering Event, a notice shall be mailed to each Holder describing in
reasonable detail the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase this Security on the date specified in the notice, which date shall, except as described in the immediately
following sentence and other than as required by law, be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the
offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the date of repurchase. 

8. Denominations, Transfer, Exchange. The Securities are in registered form without coupons in the denominations of
$2,000 or any integral multiple of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Securities may be presented for exchange or for registration of transfer
(duly endorsed or with the form of transfer endorsed thereon duly executed if so required by the Company or the Security Registrar) at the office of the Security Registrar or at the office of any transfer agent designated by the Company for such
purpose. No service charge will be made for any registration of transfer or exchange, but a Securityholder may be required to pay any applicable taxes or other governmental charges. If the Securities are to be redeemed, the Company will not be
required to: (i) issue, register the transfer of, or exchange any Security during a period beginning at the opening of business 15 days before the day of mailing of a notice of redemption of less than all of the outstanding Securities of the
same series and ending at the close of business on the day of such mailing; (ii) register the transfer of or exchange any Security of any series or portions thereof selected for redemption, in whole or in part, except the unredeemed portion of
any such Security being redeemed in part; nor (iii) register the transfer of or exchange a Security of any series between the applicable record date and the next succeeding Interest Payment Date. 

  
 A-7

 9. Persons Deemed Owners. The registered Securityholder may be treated as
its owner for all purposes. 
 10. Repayment to Parent or the Company. Any funds or Governmental Obligations deposited
with any paying agent or the Trustee, or then held by Parent or the Company, in trust for payment of principal of, premium, if any, or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such
Securities for at least one year after the date upon which the principal of, premium, if any, or interest on such Securities shall have respectively become due and payable, shall be repaid to Parent or the Company, as applicable, or (if then held by
Parent or the Company) shall be discharged from such trust. After return to the Company or Parent, Holders entitled to the money or securities must look to the Company or Parent, as applicable, for payment as unsecured general creditors. 

11. Amendments, Supplements and Waivers. The Base Indenture contains provisions permitting the Company, Parent and the
Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the securities of each series at the time Outstanding affected by such supplemental indenture or indentures to enter into supplemental indentures
for the purpose of adding, changing or eliminating any provisions of the Base Indenture or any supplemental indenture or of modifying in any manner not covered elsewhere in the Base Indenture the rights of the holders of the securities of such
series; provided, however, that no such supplemental indenture, without the consent of the holders of each Security then Outstanding and affected thereby, shall: (i) extend a fixed maturity of or any installment of principal of
any Securities of any series or reduce the principal amount thereof, or reduce the amount of principal of any original issue discount security that would be due and payable upon declaration of acceleration of the maturity thereof; (ii) reduce
the rate of or extend the time for payment of interest of any Security of any series; (iii) reduce the premium payable upon the redemption of any Security; (iv) make any Security payable in Currency other than that stated in the Security;
(v) impair the right to institute suit for the enforcement of any payment on or after the fixed maturity thereof (or in the case or redemption, on or after the redemption date); (vi) modify any subordination provisions applicable to this
Security or the guarantee of this Security in a manner adverse in any material respect to the holder hereof; or (vii) reduce the percentage of Securities, the holders of which are required to consent to any such supplemental indenture or
indentures. The Base Indenture also contains provisions permitting the holders of not less than a majority in aggregate principal amount of the Outstanding securities of each series affected thereby, on behalf of all of the holders of the securities
of such series, to waive any past default under the Base Indenture, and its consequences, except a default in the payment of the principal of, premium, if any, or interest on, any of the securities of such series as and when the same shall become
due by the terms of such securities. 
 Any such consent or waiver by the registered Securityholder shall be conclusive and
binding upon such holder and upon all future holders and owners of this Security and of any Security issued in exchange for this Security or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any
notation of such consent or waiver is made upon this Security. 

  
 A-8

 12. Defaults and Remedies. If an Event of Default with respect to the
securities of a series issued pursuant to the Base Indenture occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the Securities of such series then Outstanding, by notice in writing to the Company
and Parent (and to the Trustee if notice is given by such holders), may declare the unpaid principal of, premium, if any, and accrued interest, if any, due and payable immediately. Subject to the terms of the Indenture, if an Event of Default under
the Indenture shall occur and be continuing, the Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of the holders, unless such holders have offered the Trustee
indemnity satisfactory to it. Upon satisfaction of certain conditions set forth in the Indenture, the holders of a majority in principal amount of the Outstanding securities of a series issued pursuant to the Base Indenture will have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the securities of such series. 

13. Trustee, Paying Agent and Security Registrar May Hold Securities. The Trustee, subject to certain limitations imposed by the
TIA, or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar. 

14. No Recourse Against Others. No recourse under or upon any obligation, covenant or agreement of the Indenture, or of
any Security, or for any claim based thereon or otherwise in respect hereof or thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of Parent or the Company or of any predecessor or
successor Person, either directly or through Parent or the Company or any such predecessor or successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that the Indenture and the obligations issued hereunder and thereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, organizers,
shareholders, partners, members, officers, directors, managers or agents as such, of Parent or the Company or of any predecessor or successor Person, or any of them, because of the creation of the indebtedness authorized by the Indenture, or under
or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against, every such incorporator, organizer, shareholder, partner, member, officer, director, manager or agent as such, because of the creation of the indebtedness authorized by the
Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the acceptance
of the Securities. 
 15. Discharge of Indenture. The Indenture contains certain provisions pertaining to
defeasance, which provisions shall for all purposes have the same effect as if set forth herein. 

16. Authentication. This Security shall not be valid until the Trustee signs the certificate of authentication attached
to the other side of this Security. 

  
 A-9

 17. Guarantee. All payments by the Company under the Indenture and this Security are
fully and unconditionally guaranteed to the Holder of this Security by Parent, as provided in the related Guarantee and the Indenture. 
 18. Additional Amounts. The Company and Parent are obligated to pay Additional Amounts on this Security to the extent provided in Article XIV of the Indenture. 

19. Abbreviations. Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

20. Governing Law. The Base Indenture, the Second Supplemental Indenture and this Security (and the Guarantee hereon)
shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of laws principles that would require the
application of any other law. 

  
 A-10

 ASSIGNMENT FORM 

To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to 

 
  
 (Insert assignee’s soc. sec. or tax I.D. no.) 
  

 
  

 
  

 
  

 
 (Print or type assignee’s name,
address and zip code) 

and irrevocably appoint                   
                                         
                                         
                                         
                                      agent to transfer this
Security on the books of the Company. The agent may substitute another to act for him. 
  

 
  

			
	Date:	 	  

  

			
	Your Signature:	 	  

	(Sign exactly as your name appears on the face of this Security)

  

			
	Signature Guarantee:	 	  

  
 A-11

 ELECTION FORM 

TO BE COMPLETED ONLY IF THE HOLDER 
 ELECTS TO ACCEPT THE CHANGE OF CONTROL OFFER 
  

 
 The undersigned
hereby irrevocably requests and instructs the Company to repurchase the within Security (or the portion thereof specified below), pursuant to its terms, on the Change of Control Payment Date specified in the Change of Control Offer, for the Change
of Control Payment specified in the within Security, to the undersigned,  

					
	  
	 	, at	 	  

	  
	 		 	(please print or typewrite name, address and telephone number
	of the undersigned).	 		 	

 For this election to accept the Change of Control Offer to be effective, the undersigned must
(A) deliver, to the address of the paying agent set forth below or at such other place or places of which the Company shall from time to time notify the Holder of the within Security, either (i) the Security with this “Election
Form” form duly completed, or (ii) a telegram, telex, facsimile transmission or a letter from a member of a national securities exchange or the Financial Industry Regulatory Authority, Inc. or a commercial bank or a trust company in the
United States setting forth (a) the name of the Holder of the Security, (b) the principal amount of the Security, (c) the principal amount of the Security to be repurchased, (d) the certificate number or description of the tenor
and terms of the Security, (e) a statement that the option to elect repurchase is being exercised, and (f) a guarantee stating that the Security to be repurchased, together with this “Election Form” duly completed, will be
received by the paying agent at least five Business Days prior to the Change of Control Payment Date or (B) otherwise comply with alternative instructions in accordance with the procedures of the depositary. The address of the paying agent is
[        ]; Attention: [            ]. 
 If less than the entire principal amount of the within Security is to be repurchased, specify the portion thereof (which principal amount must be $1,000 or an integral multiple of $1,000 in excess
thereof; provided that any remaining principal amount shall be at least the minimum authorized denomination thereof) which the Holder elects to have repurchased: $        . 

 

			
	Holder:
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]