Document:

exv10wh

Exhibit 10-h

NORDSON CORPORATION

ASSURANCE TRUST

          THIS TRUST AGREEMENT, made as of the 11th day of December, 1998 is between Nordson
Corporation, an Ohio corporation (“Nordson”), and [      ] (the “Trustee”).

          WHEREAS, Nordson is obligated to provide certain supplemental pension benefits to certain of
its employees and to provide benefits pursuant to certain other deferred compensation and executive
compensation arrangements, including agreements with certain of its executives under which those
executives may become entitled to payments and benefits after a change in control of Nordson;

          WHEREAS, Nordson desires to establish a trust (the “Trust”) and to contribute to the Trust
assets that shall be held therein and that shall be subject to the claims of the creditors of
Nordson in the event that Nordson becomes Insolvent (as defined in Section 5.1 below), until
distributed as provided herein or returned to Nordson; and

          WHEREAS, it is the intention of the parties that the Trust shall constitute an unfunded
arrangement for purposes of Title I of the Employee Retirement Income Security Act of 1974, as
amended;

          NOW, THEREFORE, Nordson and the Trustee do hereby establish the Trust and agree that the Trust
shall be comprised, held, and disposed of as follows:

          Article 1. Establishment of Trust

          1.1 Nordson hereby deposits with the Trustee in trust $100, which shall become the principal
of the Trust to be held, administered, and disposed of by the Trustee as provided in this Trust
Agreement.

          1.2 The Trust hereby established may be revoked by Nordson at any time before the occurrence
of the first to occur of (a) a Funding Event (as defined in Section 15.6) and (b) a Change of
Control (as defined in Section 15.3). If any Funding Event occurs, the Trust hereby established may
not be revoked by Nordson until both that particular Funding Event and any other Funding Event that
may have also occurred have been “terminated” (as defined in Section 15.7) and the Trust then may
be revoked by Nordson if and only if no Change of Control has then occurred. Upon the occurrence of
a Change of Control, the Trust hereby established shall become irrevocable. Nordson’s General
Counsel shall notify the Trustee promptly upon the occurrence of any Funding Event and of any
Change of Control.

          1.3 The Trust is intended to be a grantor trust, of which Nordson is the grantor, within the
meaning of subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code, and
shall be construed accordingly.

          1.4 The principal of the Trust and any earnings thereon shall be held separate and apart from
other funds of Nordson and shall be used exclusively for the uses and purposes herein set forth. No
employee of Nordson shall have any preferred claim on, or any beneficial ownership interest in, any
assets of the Trust. Any rights created under any Covered Plan or

 

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under this Trust Agreement shall be mere unsecured contractual rights against Nordson. Any
assets held by the Trust will be subject to the claims of general creditors of Nordson under
federal and state law in the event Nordson becomes Insolvent.

          Article 2. Additional Funding

          2.1 Nordson, in its sole discretion, may at any time, or from time to time, make or cause to
be made, directly or indirectly, additional deposits of cash or other property in trust with the
Trustee to augment the principal to be held, administered, and disposed of by the Trustee as
provided in this Trust Agreement.

          2.2 If a Funding Event occurs, Nordson shall, as soon as practicable and in no event later
than the day before the occurrence of any Change of Control related to that Funding Event,
contribute to the Trust an amount equal to the excess, if any, of the Full Funding Amount (as
defined in Section 15.5) over the sum of the value of the assets in the Trust (the “Current Trust
Asset Value”) immediately prior to the contribution.

          2.3 Immediately upon the occurrence of the first Change of Control to occur after the
execution of this Trust Agreement and thereafter on each and every anniversary of that Change of
Control, Nordson shall contribute to the Trust an amount equal to the excess, if any, of the Full
Funding Amount over the Current Trust Asset Value immediately prior to the contribution.

          2.4 Any contribution made under this Article 2 shall be subject to withdrawal by Nordson only
as provided in Article 3, dealing with discretionary withdrawals.

          Article 3. Discretionary Withdrawals

          3.1 Nordson, in its sole discretion, at any time before the occurrence of the first to occur
of a Funding Event or a Change of Control, may withdraw assets from the Trust provided that no such
withdrawal shall reduce the Current Trust Asset Value, immediately after the withdrawal, to an
amount below $100.

          3.2 Nordson shall not be entitled to make any discretionary withdrawal of assets from the
Trust, after any Funding Event has occurred, until both that particular Funding Event and any other
Funding Event that may have also occurred have been terminated and Nordson may then make such a
discretionary withdrawal only if no Change of Control has then occurred. No discretionary
withdrawal under this Section 3.2 shall reduce the Current Trust Asset Value, immediately after the
withdrawal, to an amount below $100.

          3.3 After a Change of Control has occurred, Nordson may not make any discretionary withdrawal
from the Trust. Nothing in this Article 3 shall restrict the right of Nordson to receive a
reversion of excess assets under Article 6.

 

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          Article 4. Payments to Participants

          4.1 Not later than 120 days after the occurrence of a Funding Event and again not later than
10 days following the occurrence of a Change of Control, Nordson shall deliver to the Trustee a
schedule (the “Payment Schedule”) that lists the names and addresses of all Participants and
indicates the amounts payable and to become payable to each Participant and/or provides a formula
or other instructions acceptable to the Trustee for determining the amounts so payable and that
indicates the form in which such amounts are to be paid, as provided for or available under each
Covered Plan, and the time of commencement for payment of such amounts. At the same time as Nordson
delivers the Payment Schedule to the Trustee, Nordson shall deliver to each Participant that
portion of the Payment Schedule that pertains to amounts that may become payable to that particular
Participant. After the occurrence of a Change of Control, Nordson shall update the Payment
Schedule, provide revised versions thereof to the Trustee, and provide the relevant portions
thereof to each Participant from time to time and at such times so that each termination of the
employment of any Participant (or the occurrence of any other fact or circumstance that alters the
payments due or to become due to any Participant under any of the Covered Plans) is taken into
account in a current revised Payment Schedule that has been appropriately delivered to the Trustee
and to each Participant (to the extent relevant to each such Participant) not later than ten days
after its occurrence. Except as otherwise provided herein, the Trustee shall make payments to the
Participants in accordance with the Payment Schedule as it may be revised from time to time. The
Trustee shall make provision for the reporting and withholding of any federal, state, or local
taxes that may be required to be withheld with respect to the payment of benefits pursuant to the
terms of each Covered Plan and shall pay amounts withheld to the appropriate taxing authorities or
determine that such amounts have been reported, withheld, and paid by Nordson.

          4.2 Except as otherwise specifically provided herein, the entitlement of a Participant to
payments from Nordson under a particular Covered Plan shall be determined under the terms of the
particular Covered Plan at issue. It is Nordson’s intention that any and all amounts that may
become payable to Participants under the Covered Plans will be paid to the Participants at the
times and in the amounts specified in the relevant Covered Plan.

          4.3 In order to provide added assurances to the Participants that the amounts to which they
may be entitled under the Covered Plans will be calculated in good faith and paid promptly at the
times and in the amounts specified in the respective Covered Plans, the following procedure shall
be followed:

          (a) If, concurrently with or after the occurrence of a Change of Control, Nordson delivers to
the Trustee a Payment Schedule indicating that a Participant is entitled to payments under a
Covered Plan, the Trustee shall promptly thereafter deliver a copy of the relevant portion of the
Payment Schedule to the Participant and shall make the payments so indicated in the Payment
Schedule.

          (b) If, after the occurrence of a Change of Control, a Participant (either because no Payment
Schedule has been delivered to the Trustee or because the Participant believes that the amounts
specified in the Payment Schedule are incorrect) delivers written notice (a “Participant Payment
Notice”) to the Trustee that the Participant is entitled to payments under a Covered Plan

 

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and requesting that the Trustee make payments to the Participant pursuant to that Covered
Plan, the Trustee shall promptly deliver a copy of the Participant Payment Notice to Nordson and
thereafter:

(i) if Nordson has not, within ten business days of the delivery of the
Participant Payment Notice to the Trustee, delivered to the Trustee a notice (a
“Nordson Stop Payment Notice”) in which Nordson asserts that the Participant is not
entitled to the payments set forth in the Participant Payment Notice, the Trustee
shall make the payments set forth in the Participant Payment Notice, or,
alternatively,

(ii) if Nordson has, within ten business days of the delivery of the Participant
Payment Notice to the Trustee, delivered to the Trustee a Nordson Stop Payment Notice,
the disparity between the Participant Payment Notice and the Nordson Stop Payment
Notice shall be resolved as provided in Section 4.4 below and any payments
or portions thereof that are not in dispute shall be paid by the Trustee as and when
due to the Participant.

          4.4 If the Trustee has received both a Participant Payment Notice and a Nordson Stop Payment
Notice with regard to the same Covered Plan:

          (a) the Trustee shall engage the Accounting Firm (as defined in Section 15.1), at Nordson’s
expense, to determine what payments the Participant is entitled to under the particular Covered
Plan, which determination shall be made by the Accounting Firm as promptly as practicable but in
all events within 30 days of the engagement of the Accounting Firm by the Trustee,

          (b) Nordson shall cooperate with the Accounting Firm and provide to it all information that is
available to Nordson and is required by the Accounting Firm to make the determination referred to
in (a) above within the time frame set forth therein, and

          (c) unless and until ordered to do otherwise by an award of arbitrators following arbitration
proceedings instituted pursuant to Section 4.5 below, the Trustee shall make payments to the
Participant in the amount or amounts and at the time or times determined by the Accounting Firm.

          4.5 In the event of any dispute between a Participant and Nordson with respect to whether the
Participant is entitled to payments (or the amounts thereof) under a Covered Plan and/or to payment
thereof from the assets of the Trust, either party (Nordson or the Participant) may deliver to the
other a demand for binding arbitration. If either party delivers any such demand to the other, the
dispute shall be determined by binding arbitration conducted in Cleveland, Ohio according to the
Commercial Arbitration Rules of the American Arbitration Association. In any such arbitration the
arbitrators may consider, with such weight as they may deem appropriate, any determination by the
Accounting Firm that may have been made as provided in Section 4.4 above. The award of the
arbitrators will be final and binding and judgment on the award may be entered in any court having
jurisdiction over the subject matter and the parties.

 

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          4.6 In order to discourage Nordson from disputing, otherwise than in good faith, any amounts
properly due to a Participant, the costs and expenses related to any arbitration proceeding
referred to in Section 4.5 shall be borne as provided in this Section 4.6. Nordson shall bear the
cost of its own attorneys and other representatives and all of the fees and expenses of the
arbitrators and the arbitration proceedings. The reasonable fees and expenses of the Participant’s
attorneys relating to the subject matter of the arbitration shall be paid by Nordson unless and to
the extent the arbitrators determine (which determination shall be final and binding upon the
parties) that the positions advanced by the Participant in any such arbitration have no reasonable
basis (which determination need not be made simply because the arbitrators decide against the
Participant on any or all substantive points). If Nordson fails to pay any of the costs and
expenses related to any arbitration as specified in this Section 4.6, the Trustee shall pay such
amounts from the assets of the Trust.

          4.7 Nordson may make payments under any Covered Plan directly to or on behalf of a Participant
as they become due under the terms of the Covered Plan. If Nordson makes any such payment it shall
notify the Trustee of its decision to make such payments directly prior to the time amounts are
payable to or on behalf of the Participant. In addition, if the principal of the Trust and any
earnings thereon are not sufficient to make any payments that are due and payable under any Covered
Plan in accordance with its terms, Nordson shall make the balance of each such payment as it falls
due. The Trustee shall notify Nordson whenever principal and earnings are not sufficient.

          4.8 When making any payment to a Participant under a Covered Plan that is overdue, the Trustee
shall increase the amount of the payment to include interest on the overdue payment from the date
due to the date of the distribution calculated on a daily basis, compounded as of the end of each
calendar month, and using as the interest rate for each calendar month or part thereof during the
period with respect to which interest is due the prime lending rate published by KeyBank National
Association or its successor and in effect on the first day of that calendar month.

          4.9 Whenever a payment under a Covered Plan with respect to a participant is payable to a
beneficiary of the Participant rather than to the Participant, the beneficiary shall be entitled to
all of the rights of the Participant under all of the provisions of this Trust Agreement with
respect to that payment.

 

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          Article 5. Trustee Responsibility when Nordson Is Insolvent

          5.1 The Trustee shall cease payments to Participants from the Trust if Nordson is Insolvent.
Nordson shall be considered “Insolvent” for purposes of this Trust Agreement if (a) it is unable to
pay its debts as they become due, or (b) it is subject to a pending proceeding as a debtor under
the United States Bankruptcy Code. In determining whether Nordson is Insolvent for purposes of this
Trust Agreement, the Trustee may engage the service of legal, accounting, financial and other
advisors, which may be advisors to Nordson, to assist it in the determination. Nordson agrees to
cooperate fully with any reasonable inquiry of the Trustee or such advisors in making the
determination of Nordson’s Insolvency. During the determination of Nordson’s Insolvency, the
Trustee may, in its discretion, suspend any transfer or distribution of assets. To the extent that
the Trustee engages the services of an advisor, the Trustee may rely, without further inquiry, on
the written determination of that advisor as to the solvency or Insolvency of Nordson. All costs
reasonably incurred by the Trustee in making the determination of Nordson’s Insolvency shall be
reimbursed to the Trustee by Nordson, and if not so reimbursed, shall be chargeable against the
Trust.

          5.2 At all times during the continuance of the Trust, the principal and income of the Trust
shall be subject to claims of general creditors of Nordson under federal and state law as set forth
below.

     (a) The Board of Directors and the Chief Executive Officer of Nordson shall have the duty to
inform the Trustee in writing of Nordson’s Insolvency. If a person claiming to be a creditor of
Nordson alleges in writing to the Trustee that Nordson has become Insolvent, the Trustee shall
determine whether Nordson is Insolvent and, pending such determination, the Trustee shall not
transfer any Trust assets to any other party.

     (b) Unless the Trustee has actual knowledge of Nordson’s Insolvency, or has received notice
from Nordson or a person claiming to be a creditor alleging that Nordson is Insolvent, the Trustee
shall have no duty to inquire whether Nordson is Insolvent. The Trustee may in all events rely on
such evidence concerning Nordson’s solvency as may be furnished to the Trustee and that provides
the Trustee with a reasonable basis for making a determination concerning Nordson’s solvency.

     (c) If at any time the Trustee has determined that Nordson is Insolvent, the Trustee shall
hold the assets of the Trust for the benefit of the general creditors of Nordson. Nothing in this
Trust Agreement shall in any way diminish any rights of Participants to pursue their rights as
general creditors of Nordson.

     (d) The Trustee shall resume the making of payments to Participants in accordance with Section
4 of this Trust Agreement only after the Trustee has determined that Nordson is not Insolvent (or
is not any longer Insolvent).

          5.3 Provided that there are sufficient assets, if the Trustee discontinues payments under the
Covered Plans from the Trust pursuant to Section 5.2 hereof and subsequently resumes such payments,
the first payment following such discontinuance shall include the aggregate

 

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amount of all payments due to Participants under the terms of the Covered Plans for the period
of such discontinuance, less the aggregate amount of any payments made to the Participants by
Nordson in lieu of the payments provided for hereunder during any such period of discontinuance.

          Article 6. Reversion of Excess Assets

          From time to time after the third anniversary of the first Change of Control occurring after
the execution of this Trust Agreement, if and when requested by Nordson to do so, the Trustee shall
engage the services of the Accounting Firm, at the expense of Nordson, to determine the Aggregate
Plan Liability (as defined in Section 15.2). If the Current Trust Asset Value at the time of the
calculation exceeds 150% of the dollar amount of the Aggregate Plan Liability and the Trustee is
requested to do so by Nordson, the Trustee shall pay the amount of any such excess over 150% to
Nordson. The Trustee shall determine, in its sole discretion, how the funds necessary to make any
such payment are to be raised from Trust assets.

          Article 7. Payments to Nordson

          Except as provided in Article 3 or in Article 6, Nordson shall not have any right or power to
direct the Trustee to return to Nordson or to divert to others any of the Trust assets before all
payments that may become payable to any and all Participants under the Covered Plans (as defined in
Section 15.4) have been made to Participants. At such point in time as no further payments are
payable or may become payable in the future to or with respect to any Participant under any Covered
Plan, the remaining assets of the Trust shall be paid to Nordson.

 

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          Article 8. Investment Authority

          8.1 The Trustee shall invest and reinvest the trust property, including any income accumulated
and added to principal, only in (a) annuity or life insurance contracts that either have been
contributed to the trust property by Nordson or are issued by one or more insurance companies that
are rated at least A++ by Best Life Insurance Reports; (b) interest-bearing deposit accounts or
certificates issued or offered by any one or more Federal Deposit Insurance Corporation insured
financial institutions having in each case a high credit rating and a capital and surplus of at
least $1,000,000,000 in the aggregate; (c) direct obligations of the United States of America, or
obligations the payment of which is guaranteed, as to both principal and interest, by the
government or an agency of the government of the United States of America; (d) readily marketable
debt securities listed on a United States national securities exchange (other than securities of
Nordson) that are rated at least “investment grade” by one or more nationally recognized rating
agencies; or (e) shares or other units of participation in any mutual fund, investment trust, or
common trust fund maintained by the Trustee, which are invested exclusively or predominantly in
assets described in the foregoing clauses (a) through (d) of this Section 8.1. In no event may the
Trustee invest in securities (including stock or the right to acquire stock) or obligations issued
by Nordson, other than a de minimis amount held in common investment vehicles in which the Trustee
invests. All rights associated with assets of the Trust shall be exercised by the Trustee or the
person designated by the Trustee. The Trustee shall not be liable to any Participant for any
insufficiency of the Trust property to discharge all benefits due the same under the Covered Plans;
rather, the liability for all such benefits shall be and remain the primary and ultimate
responsibility of Nordson.

          8.2 The Trustee is empowered to register securities, and to take and hold title to other
property, in the name of the Trustee or in the name of a nominee without disclosing the Trust.
Securities also may be held in bearer form and may be held in bulk with certificates of the same
class and issuer which are assets of other fiduciary accounts. The Trustee shall be responsible for
any wrongful acts of any nominee of the Trustee.

          8.3 The Trustee is empowered to take all actions necessary or advisable in order to collect
any life insurance, annuity, or other benefits or payments of which the Trustee is the designated
beneficiary.

          8.4 Nordson may maintain in force all life insurance policies held in the Trust by paying
premiums and other charges due thereon. If any such premiums or other charges are not paid directly
by Nordson, the Trustee shall, to the extent it has cash or its equivalent readily available for
the payment of premiums due or policy loans and/or dividends are available for such purpose, pay
premiums due with such cash or its equivalent or policy loans and/or dividends, as the Trustee may
deem best; but if the Trustee does not have sufficient cash or its equivalent readily available and
policy loans and dividends are not available, then the Trustee shall dispose of or otherwise use
other assets held by it in the Trust to generate the necessary cash or, if no such other assets are
available, the Trustee may surrender one or more of the life insurance policies in order to
generate cash with which to pay premiums on one or more of the other life insurance policies. The
Trustee shall have no liability to Nordson or any other person if, as a result of an insufficiency
of cash or its equivalent, policy loans and dividends, and assets that can be disposed of or
otherwise used to generate cash, the Trustee is unable to pay premiums

 

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as they become due.

          8.5 The Trustee shall be named sole owner and beneficiary of each life insurance policy held
in the Trust and shall have full authority and power to exercise all rights of ownership relating
to the policy, except that the Trustee shall have no power to name a beneficiary of the policy
other than the Trust, to assign the policy (as distinct from conversion of the policy to a
different form) other than to a successor Trustee, or to loan to any person the proceeds of any
borrowing against such policy.

          8.6 The Trustee shall have the power to acquire additional life insurance coverage on
Participants through application for new life insurance. Prior to a Change in Control, the Trustee
shall acquire any additional life insurance from the agent or agents designated by Nordson. After a
Change in Control, the Trustee may acquire any additional life insurance from any agent or agents
that it, in its sole discretion, deems appropriate.

          Article 9. Accounting by Trustee

          The Trustee shall keep accurate and detailed records of all investments, receipts,
disbursements, and other transactions required to be made, including such specific records as shall
be agreed upon in writing between Nordson and the Trustee. All such accounts, books, and records
shall be open to inspection and audit at all reasonable times by Nordson. Within 60 days following
the close of each calendar year and within 60 days after the removal or resignation of the Trustee,
the Trustee shall deliver to Nordson a written account of its administration of the Trust during
such year or during the period from the close of the last preceding year to the date of such
removal or resignation, setting forth all investments, receipts, disbursements, and other
transactions effected by it, including a description of all securities and investments purchased
and sold with the cost or net proceeds of such purchases or sales, and showing all cash,
securities, and other property held in the Trust at the end of such year or as of the date of such
removal or resignation, as the case may be.

          Article 10. Calculations of Current Trust Asset Value and Aggregate Plan Liability

          10.1 Any determination of the Current Trust Asset Value that is to be made before the
occurrence of any Change of Control shall be made by Nordson. After the occurrence of a Change of
Control, all determinations of the Current Trust Asset Value shall be made by the Trustee and may
be based on the determination of one or more qualified independent appraisers, consultants, or
other experts retained by the Trustee for that purpose.

          10.2 Any determination of the Aggregate Plan Liability that is to be made before the
occurrence of any Change of Control shall be made by Nordson. After the occurrence of a Change of
Control, all determinations of the Aggregate Plan Liability (as defined in Section 15.2) shall be
made by the Trustee and may be based on the determination of one or more qualified independent
actuaries, consultants, or other experts retained by the Trustee for that purpose. All such
determinations shall be based on the terms of the Covered Plans and the actuarial assumptions and
methodology set forth in Exhibit B.

          10.3 Nordson shall pay all costs incurred in determining from time to time the Current

 

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Trust Asset Value and/or the Aggregate Plan Liability. If not so paid, these costs shall be
paid from the Trust. Nordson shall reimburse the Trust within 30 days after receipt of a bill from
the Trustee for any such costs paid out of the Trust.

          Article 11. Responsibility of Trustee

          11.1 The Trustee shall act with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like capacity and familiar with
such matters would use in the conduct of an enterprise of a like character and with like aims;
provided, however, that the Trustee shall incur no liability to any person for any action taken
pursuant to a direction, request, or approval that is contemplated by, and in conformity with, the
terms of the Trust and is given in writing by Nordson prior to the occurrence of any Change of
Control. In the event of a dispute between Nordson and any other party, the Trustee may apply to a
court of competent jurisdiction to resolve the dispute.

          11.2 If the Trustee undertakes or defends any litigation arising in connection with the Trust,
Nordson agrees to indemnify the Trustee against the Trustee’s costs, expenses, and liabilities
(including, without limitation, attorneys’ fees and expenses) relating thereto and to be primarily
liable for such payments. If such costs, expenses, and liabilities are not paid by Nordson in a
reasonably timely manner, the Trustee may obtain payment from the Trust. Nordson shall reimburse
the Trust within 30 days after receipt of a bill from the Trustee for any such costs, expenses, and
liabilities paid out of the Trust.

          11.3 The Trustee may consult with legal counsel (who may also be counsel for the Trustee
generally) with respect to any of its duties or obligations hereunder.

          11.4 The Trustee may hire agents, accountants, actuaries, investment advisors, financial
consultants, or other professionals to assist it in performing any of its duties or obligations
hereunder, including, without limitation, to assist it in enforcing against Nordson any of the
obligations of Nordson under this Trust Agreement.

          11.5 The Trustee shall have, without exclusion, all powers conferred on trustees by applicable
law, unless expressly provided otherwise herein.

          11.6 Notwithstanding any powers granted to the Trustee pursuant to this Trust Agreement or to
applicable law, the Trustee shall not have any power that could give the Trust the objective of
carrying on a business and dividing the gains therefrom, within the meaning of section 301.7701-2
of the Procedure and Administrative Regulations promulgated pursuant to the Internal Revenue Code.

 

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          Article 12. Compensation and Expenses of Trustee

          The Trustee shall be entitled to receive reasonable compensation for its services in
accordance with its published fee schedule as in effect from time to time. The Trustee shall be
entitled to receive its reasonable expenses incurred with respect to the administration of the
Trust, including fees incurred by the Trustee pursuant to Sections 11.3 and 11.4 of this Trust
Agreement. Such compensation and expenses shall be payable by Nordson. If not so paid, the fees and
expenses shall be paid from the Trust. Nordson shall reimburse the Trust within 30 days after
receipt of a bill from the Trustee for any such fees or expenses paid out of the Trust.

          Article 13. Tenure and Succession of Trustee

          13.1 Nordson may remove any trustee from time to time serving under this Trust Agreement at
any time upon giving 60 days written notice to such trustee, and each trustee from time to time
serving under this instrument shall have the right to resign by delivering a written notice of
resignation to Nordson, except that: (a) Nordson shall not have any power to remove the Trustee at
any time after a Change of Control, and (b) no such removal or resignation shall become effective
until the acceptance of the trust by a successor trustee designated in accordance with Section
13.2.

          13.2 If [           ], or any successor to it designated in accordance with this Section 13.2, for
any reason shall decline, cease, or otherwise fail to serve as trustee, the vacancy in the
trusteeship shall be filled by such bank or trust company, wherever located, having a capital and
surplus of at least $25,000,000 in the aggregate, as shall be designated by Nordson (if the
designation is made prior to the occurrence of any Change of Control) or by the resigning Trustee
(if the designation is made after the occurrence of any Change of Control).

          13.3 Upon acceptance of the Trust, each successor trustee shall be vested with the title to
the Trust property possessed by the trustee that it succeeds and shall have all the powers,
discretion, and duties of such predecessor trustee. No successor trustee shall be required to
furnish bond.

          13.4 Each successor trustee may accept as complete and correct and may rely upon any
accounting by any predecessor trustee and upon any statement or representation by any predecessor
trustee as to the assets comprising or any other matter pertaining to the administration of the
Trust. No successor trustee shall be liable for any act or omission of any predecessor trustee or
have any duty to enforce or seek to enforce any claim of any kind against any predecessor trustee
on account of any such act or omission.

 

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          Article 14. Amendment or Termination

          14.1 Except as provided in the second sentence of this Section 14.1, at any time before the
occurrence of the first Change of Control to occur after the execution of this Agreement, Nordson,
in its sole discretion, may amend this Trust Agreement (including the exhibits hereto) in any
manner and may terminate this Trust Agreement. If at any particular point in time (a) one or more
Funding Events have occurred, (b) one or more of those Funding Events has not yet been terminated,
and (c) no Change of Control has occurred, then Nordson may not, at that particular time, terminate
this Trust Agreement and may amend this Trust Agreement only if and to the extent permitted by
Section 14.2 below.

          14.2 Whenever (a) one or more Funding Events have occurred, (b) one or more of those Funding
Events has not yet been terminated, and (c) no Change of Control has occurred, Nordson may not
terminate this Trust Agreement but may add one or more additional plans or agreements to the class
of Covered Plans and may amend this Trust Agreement (including the exhibits hereto), provided that
(x) Nordson determines, in the exercise of its reasonable discretion, that the amendment is in the
best interests of the Participants, taken as a group, (y) no such amendment shall remove any plan
or agreement from the class of Covered Plans unless the plan has been terminated and there are no
further obligations due or to become due thereunder to any Participant, and (z) no such amendment
shall have the effect of adding circumstances under which a Funding Event shall be deemed to have
terminated, affect the determination of the Aggregate Plan Liability or the Full Funding amount so
as to reduce these amounts, or in any manner permit the withdrawal or diversion of assets from the
Trust.

          14.3 After a Change of Control has occurred, this Trust Agreement (including the exhibits
hereto) may not be amended or terminated except as provided in Section 14.5.

          14.4 Unless earlier revoked pursuant to Section 1.2, the Trust shall not terminate until the
date on which Participants are no longer entitled to any further payments pursuant to the terms of
any Covered Plans. Upon termination of the Trust on or after that date, any assets remaining in the
Trust shall be returned to Nordson.

          14.5 Upon written approval of all Participants who are or may in the future be entitled to
receive any payment pursuant to the terms of any of the Covered Plans, Nordson may terminate the
Trust prior to the time all payments that are or may become due in the future under the Covered
Plans have been made. All assets in the Trust at any such termination shall be returned to Nordson.

 

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          Article 15. Certain Definitions

Certain capitalized terms not defined elsewhere in this Trust Agreement are defined in Article
15 below.

          15.1 From and after the occurrence of the first Change of Control to occur after the execution
of this Trust Agreement, the term “Accounting Firm” shall mean the independent auditors of Nordson
for the fiscal year preceding the first year in which there occurred either (a) that Change of
Control or (b) any Funding Event that had not terminated before the occurrence of that Change of
Control and such firm’s successor or successors; provided, however, if such firm is unable or
unwilling to serve and perform in the capacity contemplated by this Trust Agreement, those members
of the Board of Directors of Nordson (as constituted immediately before the Change of Control) who
are not and have never been employees of Nordson shall select another national accounting firm of
recognized standing to serve and perform in that capacity under this Trust Agreement, except that
such other accounting firm shall not be the then independent auditors for Nordson or any of its
affiliates (as defined in Rule 12b-2 promulgated under the 1934 Act).

          15.2 The term “Aggregate Plan Liability” as at any time shall mean the maximum amount of
payments that have not yet been paid but could become payable in the future under the Covered
Plans, determined as provided in Section 10.2.

          15.3 A “Change of Control” shall be deemed to occur if and when there occurs any of the
circumstances set forth in any of clauses (a) through (d) of this Section 15.3.

	 	A.	 	Any Person or group commences a tender offer for more than 50% of the outstanding shares
that is not recommended by the Board of Directors of Nordson and one of the following
occurs:

	 	(i)	 	More than 50% of the outstanding shares are acquired.
	 
	 	(ii)	 	While the tender offer remains open, Nordson is sold or agrees to be sold, whether
by sale of assets, sale of stock, merger, or otherwise.

	 	B.	 	Any Person or group solicits proxies for the election of individuals who are not
nominated or approved by the Board of Directors of Nordson and either:

	 	(i)	 	the solicitation results in the election of directors that constitute a majority of
any class of directors or a majority of the full Board, or
	 
	 	(ii)	 	the solicitation results in the election of two or more directors, but less than a
majority of any class of directors or a majority of the full Board, and while at least two
of those directors remain in office Nordson is sold or agrees to be sold.

	 	C.	 	Any Person or group becomes the beneficial owner of 50% or more of the outstanding
shares without prior Board approval.

 

14

	 	D.	 	Any Person or group becomes the beneficial owner of 15% or more of the outstanding
shares without prior Board approval and, while the Person or group continues to own 15% or
more of the outstanding shares, Nordson is sold or agrees to be sold.

          15.4 The term “Covered Plan” means any one of the plans and agreements identified on Exhibit
A, as the same may be amended from time to time in accordance with Sections 14.1 and 14.2 above.

          15.5 The term “Full Funding Amount” as of any point in time shall mean an amount equal to 125%
of the Aggregate Plan Liability as of that point in time.

          15.6 A “Funding Event” shall be deemed to occur if and when there occurs any of the
circumstances set forth in any of the following clauses (a) through (c):

	 	A.	 	Any Person or group commences a tender offer for more than 50% of the outstanding shares
that is not recommended by the Board of Directors of Nordson.
	 
	 	B.	 	Any Person or group solicits proxies for the election of two or more directors not
nominated or approved by the Board of Directors of Nordson.
	 
	 	C.	 	Any Person or group becomes the beneficial owner of 15% or more of the outstanding
shares without prior Board approval.

          15.7 A Funding Event shall be deemed to have “terminated:”

	 	A.	 	If funding of the Trust was required by reason of an unsolicited tender offer or
exchange offer, either:

	 	(i)	 	the tender offer or exchange offer is withdrawn or terminated without the
acquisition of 15% or more of the outstanding shares, or
	 
	 	(ii)	 	if the Person or group acquires 15% or more, but less than a majority, of the
outstanding shares, the Person or group subsequently disposes of enough shares so that
beneficial ownership falls below 15%.

	 	B.	 	If funding of the Trust was required by reason of a solicitation of proxies for the
election of directors, either:

	 	(i)	 	the solicitation results in the election of less than two directors, or
	 
	 	(ii)	 	the solicitation results in the election of more than two directors, but less than a
majority of any class of directors or a majority of the full Board, and enough of those
directors leave office so that fewer than two remain as directors.

 

15

	 	C.	 	If funding of the Trust was required by reason of the acquisition of beneficial
ownership of 15% or more, but less than a majority, of the outstanding shares without prior
Board approval, if the percentage of shares beneficially owned by the Person or group
subsequently falls below 15%.

          15.8 The term “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as
amended.

          15.9 The term “Person” shall mean a “person” as used in Section 13(d) and Section 14(d)(2) of
the 1934 Act.

          15.10 The term “Participant” shall mean a person who is a participant in or party to any of
the Covered Plans.

          15.11 The term “1934 Act” shall mean the Securities Exchange Act of 1934, as amended.

          16. Miscellaneous

          16.1 Any action to be taken by Nordson hereunder shall be by action of the Chief Executive
Officer or any Vice President of Nordson, except that the actions described in Sections 1.2, 13.1,
14.1, and 14.2 may be taken only by the Board of Directors of Nordson.

          16.2 Any provision of this Trust Agreement prohibited by law shall be ineffective to the
extent of any such prohibition, without invalidating the remaining provisions hereof.

          16.3 This Trust Agreement shall be governed by and construed in accordance with the laws of
the State of Ohio.

          IN WITNESS WHEREOF, Nordson and the Trustee have executed this Trust Agreement as of the date
first above written.

	 	 	 	 	 	 	 	 	 	 	 

	[     
         
       ] Nordson Corporation	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 

	 	The “Trustee”	 	 	 	 	 	 	 	 

 

16

EXHIBIT A

Covered Plans

Nordson Corporation Excess Defined Benefit Pension Plan

Nordson Corporation Excess Defined Contribution Retirement Plan

Nordson Corporation Officers’ Deferred Compensation Plan

Supplemental pension payments pursuant to employment agreements with Messrs. [      ].

Retirement payments to retired officer, [           ].

[Amounts payable under employment agreements with [           ].]

 

17

EXHIBIT B

Assumptions and Methodology for

Determining Aggregate Plan Liability

          1. The liability for benefits under each Covered Plan will be calculated using two different
assumptions as to when Participants terminate service:

     (a) As of the date of the first Change of Control occurring after the execution of this Trust
Agreement.

     (b) Thirty months after the first Change of Control occurring after the execution of this
Trust Agreement, assuming future compensation continues at current levels, and future deferrals
under deferred compensation plans continue pursuant to prior elections.

The liability for accrued benefits under each Covered Plan will be the greater of the
liabilities calculated in accordance with (a) and (b) above.

          2. Calculations will be based upon the most valuable optional form of payment available to the
Participant.

          3. The liability for benefits under deferred compensation or other defined contribution
Covered Plans shall be equal to the deferral or other account balances (vested and unvested) of
Participants as of the applicable date, plus projected deferrals expected to be made within 30
months after the applicable date pursuant to prior elections. Account balances of Participants
under a Plan shall be calculated based on crediting the highest rate of interest which may become
payable to Participants under the Plan.

          4. The liability for benefits under other Covered Plans shall be equal to the present value of
accrued benefits (vested and unvested) of Participants as of the relevant dates under 1(a) or (b)
above.

          5. No mortality is assumed prior to the commencement of benefits. Future mortality is assumed
to occur in accordance with the 1983 Group Annuity Table Unisex Rates after the commencement of
benefits.

          6. The present value of amounts shall be determined using a discount rate equal to the then
current Pension Benefit Guaranty Corporation immediate annuity rate for a nonmultiemployer plan.

          7. In determining the dollar cost of providing any benefit that is to be provided in stock or
the value of which is dependent upon the value of common shares of Nordson, the dollar cost shall
of providing those benefits shall be determined using a value for common shares of Nordson equal to
140% of the highest closing price for common shares of Nordson at any time within the six month
period ending on the determination date.

          8. Where left undefined above, calculations will be performed in accordance with generally
accepted actuarial principles.exv10whw1

Exhibit 10-h-1

EMPLOYMENT AGREEMENT

 

          THIS EMPLOYMENT AGREEMENT is entered into on this 13th day of
November, 1998, by and between NORDSON CORPORATION, an Ohio corporation
(the “Company”), and EDWARD P. CAMPBELL (“Employee”).

W I T N E S S E T H:

          WHEREAS, Employee is an executive and key employee of the
Company, has fully and ably discharged his responsibilities and duties in his
service to the Company to date, and is now serving the Company as President and
Chief Executive Officer;

          WHEREAS, the Company desires to assure itself of continuity of
management in the event of any threatened or actual Change in Control (as
hereafter defined);

          WHEREAS, the Company desires to provide inducements for
Employee not to engage in activity competitive with the Company;

          WHEREAS, the Company desires to assure itself, in the event of
any threatened or actual Change in Control, of the continued performance of
services by Employee on an objective and impartial basis and without distraction
by concern for his employment status and security;

          WHEREAS, Employee is willing to continue in the employ of the
Company but desires assurance that his responsibilities and status as an
executive of the Company will not be adversely affected by any threatened or
actual Change in Control;

          NOW, THEREFORE, the Company and Employee agree as follows:

          1. OPERATION OF AGREEMENT. This Agreement shall be effective
and binding immediately upon its execution, but, anything in this Agreement to
the contrary notwithstanding, this Agreement shall not be operative unless and
until there has been a Change in Control while Employee is in the employ of the
Company. For purposes of this Agreement, a Change in Control shall have occurred
if at any time any of the following events occurs:

          (a) a report is filed with the Securities and
Exchange Commission (the “SEC”) on Schedule 13D or Schedule 14D-1 (or
any successor schedule, form, or report), each as promulgated pursuant
to the Securities Exchange Act of 1934 (the “Exchange Act”), disclosing
that any “person” (as the term “person” is used in Section 13(d) or
Section 14(d)(2) of the Exchange Act) is or has become a beneficial
owner, directly or indirectly, of securities of the Company
representing

 

 

25% or more of the combined voting power of the Company’s then
outstanding securities;

          (b) the Company files a report or proxy statement
with the SEC pursuant to the Exchange Act disclosing in response to
Item 1 of Form 8-K thereunder or Item 5(f) of Schedule 14A thereunder
that a Change in Control of the Company has or may have occurred or
will or may occur in the future pursuant to any then-existing contract
or transaction;

          (c) the Company is merged or consolidated with
another corporation and, as a result thereof, securities representing
less than 50% of the combined voting power of the surviving or
resulting corporation’s securities (or of the securities of a parent
corporation in case of a merger in which the surviving or resulting
corporation becomes a wholly-owned subsidiary of the parent
corporation) are owned in the aggregate by holders of the Company’s
securities immediately prior to such merger or consolidation;

          (d) all or substantially all of the assets of the
Company are sold in a single transaction or a series of related
transactions to a single purchaser or a group of affiliated purchasers;
or

          (e) during any period of 24 consecutive months,
individuals who were Directors of the Company at the beginning of such
period cease to constitute at least a majority of the Company’s Board
of Directors (the “Board”) unless the election, or nomination for
election by the Company’s shareholders, of more than one half of any
new Directors of the Company was approved by a vote of at least
two-thirds of the Directors of the Company then still in office who
were Directors of the Company at the beginning of such 24 month period.

The first date on which a Change in Control occurs is referred to herein as the
“Change in Control Date.” Upon the occurrence of a Change in Control while
Employee is in the employ of the Company, this Agreement shall become
immediately operative subject, however, to the provisions of Section 2, below.

          2. POSSIBLE “UNDOING” OF A CHANGE IN CONTROL. If a report is
filed with the SEC disclosing that a person (the “Acquiror”) is or has become a
beneficial owner, directly or indirectly, of securities of the Company
representing 25% or more of the combined voting power of the company’s
outstanding securities and, as a result of that filing, a Change in Control,

2

 

as defined in Paragraph 1(a), above, occurs, while Employee is in the employ of
the Company, then, as provided in Paragraph 1, above, this Agreement will become
immediately operative. However, if:

          (a) a Change in Control as described in Paragraph
1(a) occurs while Employee is in the employ of the Company;

          (b) the Acquiror subsequently transfers or otherwise
disposes of sufficient securities of the Company in one or more
transactions, to a person or persons other than affiliates of the
Acquiror or any persons with whom the Acquiror has agreed to act
together for the purpose of acquiring, holding, voting or disposing of
securities of the Company, so that, after such transfer or other
disposition, the Acquiror is no longer the beneficial owner, directly
or indirectly, of securities of the Company representing 10% or more of
the combined voting power of the Company’s then outstanding securities;

          (c) at the time of the subsequent transfer or
disposition that reduced the Acquiror’s holdings to less than 10% as
provided in (b), immediately above, no other event constituting a
Change in Control had occurred; and

          (d) at the time of the subsequent transfer or other
disposition that reduced the Acquiror’s holdings to less than 10%,
Employee’s employment with the Company had not been terminated by the
Company without cause or by Employee for good reason,

then, for all purposes of this Agreement, the filing of the report constituting
a Change in Control under Paragraph 1(a) shall be treated as if it had not
occurred and this Agreement shall return to the status it had immediately before
the filing of the report constituting a Change in Control under Paragraph 1(a).
Accordingly, if and when a new Change in Control occurs, this Agreement will
again become operative on the date of that new Change in Control.

          3. EMPLOYMENT, CONTRACT PERIOD.

          (a) Subject to the terms and conditions of this
Agreement, upon the occurrence of a Change in Control, the Company
shall continue to employ Employee and Employee shall continue in the
employ of the Company for the period specified in Paragraph 3(b) (the
“Contract Period”), in the position and with the duties and
responsibilities set forth in Paragraph 4.

          (b) The Contract Period shall commence on the

3

 

Change in Control Date and, subject only to the provisions of Paragraph
9 below, shall continue for a period of twenty-four months to the close
of business on the day (the “Contract Expiration Date”) falling
twenty-four months after the Change in Control Date.

          4. POSITION, DUTIES, RESPONSIBILITIES. At all times during the
Contract Period, Employee shall:

          (a) hold the same position with substantially the
same duties and responsibilities as an executive of the Company as
Employee held immediately before the Change in Control Date and those
duties and responsibilities may be extended, from time to time during
the Contract Period, by the Board with Employee’s consent;

          (b) adhere to and implement the policies and
directives promulgated, from time to time, by the Board;

          (c) observe all Company policies applicable to
executive personnel of the Company; and

          (d) devote his business time, energy, and talent to
the business of and to the furtherance of the purposes and objectives
of the Company to generally the same extent as he has so devoted his
business time, energy, and talent before the Change in Control Date,
and neither directly nor indirectly render any business, commercial, or
professional services to any other person, firm, or organization for
compensation without the prior approval of the Board.

Nothing in this Agreement shall preclude Employee from devoting reasonable
period of time to charitable and community activities or the management of his
investment assets provided such activities do not materially interfere with the
performance by Employee of his duties hereunder.

          5. COMPENSATION. For services actually rendered by Employee on
behalf of the Company during the Contract Period as contemplated by this
Agreement the Company shall pay to Employee a base salary, annual bonus and
stock options (together referred to as “Total Compensation”) as follows:

          (a) base salary at a rate equal to the highest of (i)
the rate in effect immediately before the Change in Control date, (ii)
the rate in effect exactly two years before the Change in Control Date,
or (iii) such greater rate as the Company may determine. The base
salary shall be paid to Employee in the same increments and on the same
schedule each month as in effect immediately before the Effective Date;

4

 

          (b) an annual bonus under the 1995 Management
Incentive Compensation Plan as amended, or any substitute therefore,
(“Bonus Plan”) equal to the highest of (i) the amount calculated using
the Bonus Plan in effect immediately before the Change in Control Date,
(ii) the amount calculated using the Bonus Plan in effect exactly two
years before the Change of Control Date, or (iii) such greater amount
as the Company may determine. The annual bonus shall be paid to the
Employee not later than the first payroll date in January following the
plan year for which the bonus was earned;

          (c) stock options shall be granted annually at such
times, under such terms and conditions, and in such amounts, as to be
no less valuable than the greater value of (i) stock options granted
immediately before the Change in Control Date, (ii) stock options
granted two years before the Change in Control Date, and (iii) such
greater value as the Company may determine.

          6. VACATION, HOLIDAYS AND SICK LEAVE. Employee will be
entitled to such periods of vacation, holidays and sick leave allowance each
year as are determined by the Company’s policies relevant to vacation, holidays
and sick pay for executive personnel as in effect immediately before the Change
in Control Date or as may be increased from time to time thereafter. Neither
vacation time nor sick leave allowance will be accumulated from year to year.

          7. OTHER COMPANY PLANS, BENEFITS, AND PERQUISITES. During the
Contract Period Employee shall continue to be entitled to participate in every
employee benefit plan, incentive plan or arrangement (“Plan”) that is generally
available to executive personnel of the Company immediately before the Change in
Control Date or that is specifically extended to Employee by the Company before
the Change in Control Date, whether or not Employee is eligible to participate
in such Plan on the date of this Agreement. Employee’s participation in and
benefits under any such Plan shall be on the terms and subject to the conditions
specified in the governing document of the particular plan or arrangement as in
effect immediately before the Change in Control Date, which terms and conditions
shall not be amended during the Contract Period unless the benefits to Employee
are at least as great under the Plan as amended (or under a substitute Plan) as
were the benefits under the Plan as in effect immediately before the Change in
Control Date. Specific Plans of the Company to which Employee is entitled to
benefits include, but are not limited to, the Plans (or any substitute Plan)
listed on Exhibit A hereto.

5

 

The Company will also provide Employee with such perquisites during the Contract
Period as the Company customarily provided to similarly situated executive
personnel in the period immediately before the Change in Control Date.

          8. ADDITIONAL BENEFIT. If a Change in Control occurs and this
Agreement becomes operative and thereafter Employee’s employment is terminated
by the Company without cause or by Employee for good reason, whether such
termination occurs before, on, or after the Contract Expiration Date, the
Company shall pay and provide benefits to or with respect to Employee in such
amounts and at such times so that the aggregate benefits payable to or with
respect to Employee under the Salaried Plan and the Excess Benefit Plans will be
equal to the aggregate benefits that would have been paid to or with respect to
Employee under the Salaried Plan and the Excess Benefit Plans if Employee were
exactly five years older than his actual age and his credit under the Salaried
Plan and the Excess Benefit Plans were equal to the greater of his actual
service or the amount of service he is deemed to have under paragraph 12(a)(iv),
below. If Employee’s employment is terminated after a Change in Control by the
Company without cause or by Employee for good reason and Employee is entitled to
additional benefits by virtue of the additional five years of deemed age
provided for in this Paragraph 8, then the Company shall directly provide such
benefits to Employee in the same manner as additional benefits are to be
provided to Employee under paragraph 12(a), below.

          9. PRIORITY OF PARAGRAPHS 2 OVER 8. Paragraph 2 of this
Agreement shall take precedence over Paragraph 8 of this Agreement so that if a
Change in Control occurs and is subsequently undone under Paragraph 2 of this
Agreement, Employee will thereafter have no rights under Paragraph 8 of this
Agreement unless and until a further Change in Control occurs.

          10. EFFECT OF DISABILITY. If during the Contract Period and
before his employment hereunder is otherwise terminated, Employee becomes
disabled to such an extent that he is prevented from performing his duties
hereunder by reason of physical or mental incapacity: (a) he shall be entitled
to disability and other benefits at least equal to those that would have been
available to him had the Company continued, throughout the period of Employee’s
disability, all of its programs, benefits, and policies with respect to disabled
employees that were in effect immediately before the Change in Control; and (b)
if he recovers from his disability before the end of the Contract Period he
shall be reinstated as an active employee for the remainder of the Contract
Period under and subject to all of the terms of this Agreement including,
without limitation, the Company’s right to terminate Employee with or without
cause under Paragraph 11(b).

6

 

          11. TERMINATION FOLLOWING A CHANGE IN CONTROL. Following a
Change in Control:

          (a) Employee’s employment hereunder will terminate
without further notice upon the death of Employee;

          (b) The Company may terminate Employee’s employment
hereunder effective immediately upon giving notice of such termination:

          (i) for “cause,” (A) if Employee commits an
act of fraud, embezzlement, theft, or other similar criminal
act constituting a felony and involving the Company’s business
or (B) if Employee breaches his agreement with respect to the
time to be devoted to the business of the Company set forth in
Paragraph 3(d) hereof and fails to cure such breach within 30
days of receipt of written notice of such breach from the
Board; or

          (ii) without cause at any time; and

          (c) Employee may terminate his employment hereunder
effective immediately upon giving of notice of such termination or
retirement:

          (i) without cause at any time; or

          (ii) for “good reason,” which, for purposes
of this Agreement shall mean notice by the Employee to the
Company of the occurrence of any of the following:

          (A) any reduction in base salary or position or any
material reduction in responsibilities or duties contemplated for
Employee under this Agreement or any material reduction in the
aggregate of employee benefits, perquisites, or fringe benefits
contemplated for Employee under this Agreement, provided that any
particular reduction described in this clause (A) shall constitute
“good reason” only if Employee terminates his employment within six
months of the date of the reduction; or

          (B) any good faith determination by Employee that, as
a result of fundamental differences of opinion between Employee and the
Board as to the goals of the Company, Employee is unable to carry out
the responsibilities and duties contemplated for Employee under this
Agreement, provided that any determination by Employee described in
this clause (B) shall constitute “good reason” only if Employee
terminates his employment within six months of the
Change in Control Date.

7

 

          12. SEVERANCE COMPENSATION.

          (a) If, before the Contract Expiration Date,
Employee’s employment is terminated by the Company without cause or by
Employee for good reason, then, except as provided in Paragraph 12(b),
12(c), or 12(d), the Company shall pay and provide to Employee the
following compensation and benefits through the last to occur of
(x) the expiration of twenty-four months after the effective date of
the termination, and (y) the Contract Expiration Date (such
last-to-occur date is hereinafter referred to as the “Severance
Benefits Termination Date”):

          (i) Base Salary and Annual Bonus at the
highest rate payable to Employee during the Contract Period,
to be paid at the times provided in Paragraph 5 hereof;

          (ii) in lieu of the opportunity to receive
stock option grants during the period from the effective date
of termination through the Severance Benefits Termination
Date, the Company will pay to Employee an amount in cash equal
to the product of (A) the aggregate value of the stock options
granted to Employee with Respect to the fiscal year ended
immediately prior to the Change in Control and (B) a fraction,
the numerator of which is the number of days from the
effective date of termination through the Severance Benefits
Termination Date and the denominator of which is 365; for this
purpose, the value of the stock options will be determined
using the Black-Scholes option price model;

          (iii) coverage under the Company’s medical,
dental, insurance, short-term disability, long-term disability
plans, and other Plans, as listed on Exhibit A, Items 7
through 14 (provided that he became eligible to participate
therein prior to the date his employment is terminated), each
as in effect on the Change in Control Date (or, if
subsequently amended to increase benefits to Employee or his
dependents, as so amended) and each as if Employee’s
employment had continued through the Severance Benefits
Termination Date; and

          (iv) coverage and service credit under the
Salaried Plan and the Excess Benefit Plans maintained in
connection with the Salaried Plan under which he is eligible
to participate so that the aggregate benefits payable to or
with respect to the Employee under the

8

 

Salaried Plan and the Excess Benefit Plan will be equal to the
aggregate benefits that would have been paid to or with
respect to Employee under the Salaried Plan and the Excess
Benefit Plans if Employee’s employment had continued through
the Severance Benefits Termination Date.

If any of the benefits to be provided under the Company’s Plans cannot
be provided through that Plan to Employee following termination of his
employment, the Company shall directly provide the full equivalent of
such benefits to Employee. For example, since it is not possible to
provide additional service credit directly through the Salaried Plan,
if Employee becomes entitled to an additional 18 months of service
credit under the Salaried plan pursuant to (iv) above, the Company will
be required to pay to Employee, from its general assets, on each date
on which Employee receives a payment from the Salaried Plan, a
supplemental payment equal to the amount by which that particular
payment under the Salaried Plan would have been increased if Employee’s
total service credit under the Salaried Plan were 18 months greater
than is actually the case by reason of this Agreement. In addition, if
in these circumstances any payments become due under the Salaried Plan
with respect to Employee following his death, the Company will be
obligated to make similar supplemental payments with respect to
Employee on the dates on which payments are made with respect to
Employee under the Salaried Plan.

Furthermore, the provisions of this Agreement shall not affect the
validity or enforceability of any other agreement between the Company
and Employee, and the benefits provided under this Agreement shall be
additive to any other benefits promised to Employee under such other
agreement. Moreover, this Agreement shall not operate to negate any
other assurances provided to Employee.

          (b) If Employee becomes entitled to compensation and
benefits pursuant to Paragraph 12(a) he shall use reasonable efforts to
seek other employment, provided, however, that he shall not be required
to accept a position of less importance and dignity or of substantially
different character than of his position with the Company or a position
that would require Employee to engage in activity in violation of
Employee’s agreement with respect to noncompetition set forth in
Paragraph 14 hereof nor shall he be required to accept a position
outside the greater Cleveland area. The Company’s obligations under
item (i) and (ii) of Paragraph 12(a) will be offset by payments and

9

 

benefits received by Employee from another employer to the following
extent:

          (i) The Company’s obligation to pay any
particular installment of base salary following Employee’s
termination will be offset, on a dollar for dollar basis, by
any cash compensation received by Employee from another
employer before the date on which the installment of base
salary is payable by the Company.

          (ii) To the extent that Employee is provided
medical, dental, or short-term or long-term disability income
protection benefits by another employer during any period, the
Company will be relieved of its obligation to provide such
benefits to Employee. For example, if a new employer provides
Employee with a medical benefits plan that pays $500.00 for a
specific claim made by Employee and the Company’s medical
insurance plan would have paid $750.00 for that claim, then
the Company will be obligated to pay Employee $250.00 with
respect to that claim.

Other than as provided in this Paragraph 12(b) Employee shall have no
duty to mitigate the amount of any payment or benefit provided for in
this Agreement.

          (c) If during any period in which Employee is
entitled to payments or benefits from the Company under Paragraph
12(a):

          (i) Employee materially and willfully
breaches his agreement with respect to confidential
information set forth in Paragraph 13 hereof and such breach
directly causes the Company substantial and demonstrable
damage; or

          (ii) Employee materially and wilfully
breaches his agreement with respect to noncompetition set
forth in Paragraph 14 hereof and such breach directly causes
the Company substantial and demonstrable damage;

then the Company will be relieved of its obligations under paragraph
12(a) hereof as of the first day of the month immediately following the
date of such material breach.

          (d) If Employee dies on or before the Severance
Benefits Termination Date and immediately before his death he is
entitled to payments or benefits from the Company under Paragraph
12(a), the Company will be relieved of its

10

 

obligations under item (i) of Paragraph 12(a) as of the first day of
the month immediately following the month in which Employee dies and
thereafter the Company will provide to Employee’s beneficiaries and
dependents salary continuation payments, benefits under the Excess
Benefits Plan (as supplemented by item (iii) of Paragraph 12(a), and
continuing medical and dental benefits to the same extent (subject to
reduction for payments or benefits from a new employer under paragraph
12(b) as if Employee’s death had occurred while Employee was in the
active employ of the Company.

          13. CONFIDENTIAL INFORMATION. Employee agrees that he will
not, during the term of the Agreement or at any time thereafter, either directly
or indirectly, disclose or make known to any person, firm, or corporation any
confidential information, trade secret, or proprietary information of the
Company that Employee may acquire in the performance of Employee’s duties
hereunder. Upon the termination of Employee’s employment with the Company,
Employee agrees to deliver forthwith to the Company any and all literature,
documents, correspondence, and other materials and records furnished to or
acquired by Employee during the course of such employment.

          14. NONCOMPETITION. During any period in which Employee is
receiving Total Compensation under this Agreement (whether during the Contract
Period pursuant to Paragraph 5 or following termination pursuant to Paragraph
12(a), Employee shall not act as a proprietor, investor, director, officer,
employee, substantial stockholder, consultant, or partner in any business
engaged to a material extent in direct competition with the Company in any
market in any line of business engaged in by the Company during the Contract
period. If Employee delivers to the Company a written waiver of his right to
receive any further compensation or benefits pursuant to Paragraph 12(a), if
agreed to by the Company in writing, he shall be released, effective as of the
date of agreement by the Company, from the post-termination noncompetition
covenant contained in this Paragraph 14.

          15. COSTS OF ENFORCEMENT. The Company shall pay and be solely
responsible for any and all costs and expenses (including attorneys’ fees)
incurred by Employee in seeking to enforce the Company’s obligations under this
Agreement unless and to the extent a court of competent jurisdiction determines
that the Company was relieved of those obligations because (a) the Company
terminated Employee for cause (as determined under Paragraph 11(b)(i) hereof),
(b) Employee voluntarily terminated his employment other than for good reason
(as determined under Paragraph 11(c)(ii) hereof), or (c) Employee materially and
willfully breached his agreement not to compete with the Company

11

 

or his agreement with respect to confidential information and such breach
directly caused substantial and demonstrable damage to the Company. The Company
shall forthwith pay directly or reimburse Employee for any and all such costs
and expenses upon presentation by Employee or by counsel selected from time to
time by Employee of a statement or statements prepared by Employee or by such
counsel of the amount of such costs and expenses. If and to the extent a court
of competent jurisdiction renders a final binding judgment determining that the
Company was relieved of its obligations for any of the reasons set forth in (a),
(b) or (c) above, Employee shall repay the amount of such payments or
reimbursements to the Company. In addition to the payment and reimbursement of
expenses of enforcement provided for in this Paragraph 15, the Company shall pay
to Employee in cash, as and when the Company makes any payment on behalf of, or
reimbursement to, Employee, an additional amount sufficient to pay all federal,
state, and local taxes (whether income taxes or other taxes) incurred by
Employee as a result of (x) payment of the expense or receipt of the
reimbursement, and (y) receipt of the additional cash payment. The Company shall
also pay to Employee interest (calculated at the Base Rate from time to time in
effect at National City Bank, Cleveland, Ohio, compounded monthly) on any
payments or benefits that are paid or provided to Employee later than the date
on which due under the terms of this Agreement.

          16. EMPLOYEE RIGHTS. Nothing expressed or implied in this
Agreement shall create any right or duty on the part of the Company or Employee
to have Employee remain in the employ of the Company before any Change in
Control and Employee shall have no rights under this Agreement if his employment
with the Company is terminated for any reason or for no reason before any Change
in Control. Nothing expressed or implied in this Agreement shall create any duty
on the part of the Company to continue in effect, or continue to provide to
Employee, any plan or benefit unless and until a Change in Control occurs. If,
before a Change in Control, the Company ceases to provide any plan or benefit to
Employee, nothing in this Agreement shall be construed to require the Company to
reinstitute that plan or benefit to Employee upon the later occurrence of a
Change in Control.

          17. NOTICES. For purposes of this Agreement, all
communications provided for herein shall be in writing and shall be deemed to
have been duly given when delivered or when mailed by United States registered
or certified mail, return receipt requested, postage prepaid, addressed to the
Company (Attention: President) at its principal executive office and to Employee
at his principal residence, or to such other address as either party may have
furnished to the other in writing and in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

12

 

          18. ASSIGNMENT, BINDING EFFECT.

          (a) This Agreement shall be binding upon and shall
inure to the benefit of the Company and the Company’s successors and
assigns. The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and or assets of the Company, by
agreement in form and substance satisfactory to Employee, to expressly
assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no
such succession had taken place.

          (b) This Agreement shall be binding upon Employee and
this Agreement and all rights of Employee hereunder shall inure to the
benefit of, and be enforceable by, Employee and his personal or legal
representatives, executors, or administrators. No right, benefit, or
interest of Employee hereunder shall be subject to assignment,
anticipation, alienation, sale, encumbrance, charge, pledge,
hypothecation, or to execution, attachment, levy, or similar process;
except that Employee may assign any right, benefit, or interest
hereunder if such assignment is permitted under the terms of any plan
or policy of insurance or annuity contract governing such right,
benefit, or interest.

          19. INVALID PROVISIONS.

          (a) Any provision of this Agreement that is
prohibited or unenforceable shall be ineffective to the extent, but
only to the extent, of such prohibition or unenforceability without
invalidating the remaining portions hereof and such remaining portions
of this Agreement shall continue to be in full force and effect.

          (b) In the event that any provision or portion of
this Agreement shall be determined to be invalid or unenforceable, the
parties will negotiate in good faith to replace such provision with
another provision that will be valid or enforceable and that is as
close as practicable to the provision held invalid or unenforceable.

          20. MODIFICATION. No modification, amendment, or waiver of any
of the provisions of the Agreement shall be effective unless in writing,
specifically referring hereto, and signed by both parties.

          21. WAIVER OF BREACH. The failure at any time to enforce any
of the provisions of this Agreement or to require

13

 

performance by the other party of any of the provisions of this Agreement shall
in no way be construed to be a waiver of such provisions or to affect either the
validity of this Agreement or any part of this Agreement or the right of either
party thereafter to enforce each and every provision of this Agreement in
accordance with the terms hereof.

          22. GOVERNING LAW. This Agreement has been made in and shall
be governed and construed in accordance with the laws of the State of Ohio.

          23. GROSS-UP OF PAYMENTS DEEMED TO BE EXCESS PARACHUTE
PAYMENTS.

          (a) The Company and Employee acknowledge that,
following a Change of Control, one or more payments or distributions to
be made by the Company to or for the benefit of Employee (whether paid
or payable or distributed or distributable pursuant to the terms of
this Agreement, under some other plan, agreement, or arrangement, or
otherwise) (a “Payment”) may be determined to be an “excess parachute
payment” that is not deductible by the Company for Federal income tax
purposes and with respect to which Employee will be subject to an
excise tax because of Sections 280G and 4999, respectively, of the
Internal Revenue Code (hereinafter referred to respectively as “Section
280G” and “Section 4999”). If Employee’s employment is terminated after
a Change of Control occurs, the Accounting Firm, which, subject to any
inconsistent position asserted by the Internal Revenue Service, shall
make all determinations required to be made under this Paragraph 23,
shall determine whether any Payment would be an excess parachute
payment and shall communicate its determination, together with detailed
supporting calculations, to the Company and to Employee within 30 days
after the date on which Employee’s employment with the Company
terminates or such earlier time as is requested by the Company. The
Company and Employee shall cooperate with each other and the Accounting
Firm and shall provide necessary information so that the Accounting
Firm may make all such determinations. The Company shall pay all of the
fees of the Accounting Firm for services performed by the Accounting
Firm as contemplated in this Paragraph 23.

          (b) If the Accounting Firm determines that any
Payment gives rise, directly or indirectly, to liability on the part of
Employee for excise tax under Section 4999 (and/or any penalties and/or
interest with respect to any

14

 

such excise tax), the Company shall make additional cash payments to
Employee, from time to time and at the same time as any Payment
constituting an excess parachute payment is paid or provided to
Employee, in such amounts as are necessary to put Employee in the same
position, after payment of all federal, state, and local taxes (whether
income taxes, excise taxes under Section 4999 or otherwise, or other
taxes) and any and all penalties and interest with respect to any such
excise tax, as Employee would have been in after payment of all
federal, state, and local income taxes if the Payments had not given
rise to an excise tax under Section 4999 and no such penalties or
interest had been imposed.

          (c) If the Internal Revenue Service determines that
any Payment gives rise, directly or indirectly, to liability on the
part of Employee for excise tax under Section 4999 (and/or any
penalties and/or interest with respect to any such excise tax) in
excess of the amount, if any, previously determined by the Accounting
Firm, the Company shall make further additional cash payments to
Employee not later than the due date of any payment indicated by the
Internal Revenue Service with respect to these matters, in such amounts
as are necessary to put Employee in the same position, after payment of
all federal, state, and local taxes (whether income taxes, excise taxes
under Section 4999 or otherwise, or other taxes) and any and all
penalties and interest with respect to any such excise tax, as Employee
would have been in after payment of all federal, state, and local
income taxes if the Payments had not given rise to an excise tax under
Section 4999 and no such penalties or interest had been imposed.

          (d) If the Company desires to contest any
determination by the Internal Revenue Service with respect to the
amount of excise tax under Section 4999, Employee shall, upon receipt
from the Company of an unconditional written undertaking to indemnify
and hold Employee harmless (on an after tax basis) from any and all
adverse consequences that might arise from the contesting of that
determination, cooperate with the Company in that contest at the
Company’s sole expense. Nothing in this Paragraph 23(d) shall require
Employee to incur any expense other than expenses with respect to which
the Company has paid to Employee sufficient sums so that after the
payment of the expense by Employee and taking into account the payment
by the Company with respect to that expense and any and all taxes that
may be imposed upon Employee as a result of his receipt of that
payment, the net effect is no cost to Employee. Nothing in this
Paragraph 23(d) shall require Employee to extend the statute of
limitations with respect

15

 

to any item or issue in his tax returns other than, exclusively, the
excise tax under Section 4999. If, as the result of the contest of any
assertion by the Internal Revenue Service with respect to excise tax
under Section 4999, Employee receives a refund of a Section 4999 excise
tax previously paid and/or any interest with respect thereto, Employee
shall promptly pay to the Company such amount as will leave Employee,
net of the repayment and all tax effects, in the same position, after
all taxes and interest, that he would have been in if the refunded
excise tax had never been paid.

          (e) For purposes of this Paragraph 23, the term
“Accounting Firm” means the independent auditors of the Company for the
fiscal year preceding the year in which the earlier of (i) the date of
termination of Employee’s employment with the Company, or (ii) the
year, if any, in which occurred the first Change of Control occurring
after the date of this Agreement, and such firm’s successor or
successors; provided, however, if such firm is unable or unwilling to
serve and perform in the capacity contemplated by this Agreement, the
Company shall select another national accounting firm of recognized
standing to serve and perform in that capacity under this Agreement,
except that such other accounting firm shall not be the then
independent auditors for the Company or any of its affiliates (as
defined in Rule 12b-2 promulgated under the Exchange Act).

          IN WITNESS WHEREOF, the Company and Employee have executed
this Agreement on the day and year first above written.

	 	 	 	 	 
	 	NORDSON CORPORATION

 	 
	 	By:  	 	 
	 	 	Thomas L. Moorhead 	 
	 	Title:	Vice President, Law and 

Assistant Secretary 	 
	 
	 	 	 
	 	Employee:  	 
 	 
	 	 	Edward P. Campbell 	 
	 	 	 	 
	 

16

 

EXHIBIT A

COMPANY PLANS

          1. The Nordson Corporation 1995 Management Incentive
Compensation Plan;

          2. The Nordson Corporation 1993 Long-Term Performance Plan;

          3. The Nordson Corporation Salaried Employees Pension Plan
(the “Salaried Plan”);

          4. Nordson Corporation Officers’ Deferred Compensation Plan;

          5. The Nordson Corporation Excess Defined Benefit Pension Plan
and the Excess Defined Contribution Retirement Plan (the “Excess Benefit
Plans”);

          6. The Nordson Corporation Employees’ Savings Trust Plan
(NEST);

          7. The Nordson Corporation Non-Union Employees Stock Ownership
Plan;

          8. The Nordson Corporation Salaried Employees’ Health Plan;

          9. The Nordson Corporation Prescription Drug Plan;

          10. The Nordson Corporation Short Term and Long Term
Disability Plans;

          11. The Nordson Corporation Employees’ Dental Expense Plan;

          12. The Nordson Corporation Group Life Insurance
Plan-Salaried;

          13. The Nordson Corporation Group Travel Accident Plan;

          14. The Company’s car allowance Plan;

          15. Nordson’s policy of reimbursement for club dues, airline
travel clubs, and the like.

17

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