Document:

Crane Co. Corporate EVA Incentive Compensation Plan

 EXHIBIT 10.2 
  
 CRANE CO. CORPORATE 
 EVA INCENTIVE
COMPENSATION PLAN 
 (AS IN EFFECT AS OF JANUARY 1, 2004) 
  

	1.	PURPOSE. 

  
 In 1988, Crane Co., a Delaware corporation (the “Company”), initially adopted an annual incentive compensation program based on the principles of Economic Value Added. The purpose of this approach is to
maximize shareholder value by aligning management’s interests with those of the Company’s shareholders and rewarding management for sustainable and continuous improvement in the business being managed. The Board of Directors of the Company
(the “Board”) has amended the Plan from time to time in various respects, including in order to more closely align the EVA calculations under the Plan for corporate office participants with the financial results reported to shareholders
and to achieve greater transparency to the participants in the financial calculations required under the Plan. This document sets forth the Plan as in effect as of January 1, 2004 for the corporate office participants. For all periods prior to
January 1, 2004, the provisions of the Plan as in effect prior to that date shall govern. 
  

	2.	DEFINITIONS. 

  
 For purposes of this Plan, the following capitalized terms shall have the respective meanings set forth below: 
  
 (a) “Annual Payout” means an annual cash payment to a Participant
determined in accordance with Section 7. 
  
 (b) “Average
Capital Employed” means, for any Plan Year, the average monthly operating capital, but without deducting any reserves for asbestos-related claims, as determined by the Company following the close of the Plan Year. 
  
 (c) “Bank Account” means a bookkeeping account established for each
Participant. 
  
 (d) “Board” shall have the meaning
given to such term in Section 1. 
  
 (e) “Bonus Pool”
means each of the bonus pools established in accordance with Section 5. 
  
 (f) “Company” shall have the meaning given to such term in Section 1. 
  
 (g) “Committee” means the Management Organization and Compensation Committee of the Board. 
  
 (h) “Cost of Capital” means, for any Plan Year, the weighted average cost of equity and after-tax cost of debt. The cost of equity shall be
fixed by the Committee at the beginning of the Plan Year. The after-tax cost of debt shall be the actual interest cost paid by the Company during the Plan Year divided by the average monthly debt outstanding during such Plan Year, adjusted by a tax
rate of 35 percent. The Cost of Capital calculation shall be reviewed and approved by the Committee following the close of the Plan Year. 
  
 (i) “EVA” means, for any Plan Year, the Return on Capital less the Cost of Capital, multiplied by the Average Capital Employed. 
  
 (j) “EVA Award” means each Participant’s individual award
amount for a Plan Year as determined in accordance with Section 6. 
  
 (k) “NOPAT” means net operating profit after tax for the Plan Year plus the after-tax amount of expenses for asbestos-related claims against the Company and its subsidiaries during such Plan Year. 
  
 (l) “Participants” means the individuals designated by the
Committee in accordance with Section 4 as eligible to participate in the Plan. 
  

 (m) “Participation Percentage” means the Bonus Pool percentage established for each Participant
in accordance with Section 6. The aggregate Participation Percentages of all Participants for a Plan Year shall not exceed 100%. 
  
 (n) “Plan Year” means each calendar year during the term of this Plan. 
  
 (o) “Return on Capital” means, for any Plan Year, NOPAT divided by Average Capital Employed. 
  
 (p) “Target Bonus” means a target bonus for each Participant,
stated as a percentage of the Participant’s base annual salary for the Plan Year, established by the Committee in accordance with Section 4. 
  

	3.	ADMINISTRATION. 

  
 The Plan will be administered by the Committee. The Committee’s decisions in the administration of the Plan shall be final and binding on all
parties. The Committee shall have the sole discretionary authority to interpret the Plan, to establish and modify administrative rules for the Plan, to designate the employees eligible to participate in the Plan, to establish and adjust any EVA
formula or calculation as provided in Sections 4, 5 and 6, to impose such conditions and restrictions on awards under the Plan as it determines appropriate, and to take such steps in connection with the Plan and awards made under the Plan as it may
deem necessary or advisable. Notwithstanding the foregoing, the Committee may, in its discretion, delegate any or all of its powers and duties hereunder to the Company’s Chief Executive Officer, provided that, with respect to the participation
hereunder by the Chief Executive Officer and any other officers of the Company whose compensation is subject to the deduction limitation set forth in Section 162(m) of the Internal Revenue Code, all such powers and duties shall remain with the
Committee to the extent necessary to ensure, to the extent practicable, that amounts payable under this Plan qualify as “performance-based compensation” under Section 162(m)(4)(C) of the Internal Revenue Code and the regulations
thereunder. 
  
 The Committee may employ attorneys, consultants,
accountants or other persons and the Committee and the Company and its officers and directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. All usual and reasonable expenses of the Committee shall be paid by
the Company. No Committee member shall receive compensation with respect to his or her services for the Committee except as may be authorized by the Board. All actions taken and all interpretations and determinations made by the Committee in good
faith shall be final and binding upon all employees who have received awards, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation taken or made in good
faith with respect to this Plan or awards made hereunder, and all members of the Committee shall be fully indemnified and protected by the Company in respect of any such action, determination or interpretation. 
  

	4.	ELIGIBILITY. 

  
 The persons who shall participate in this Plan shall be such officers and other key employees of the Company as may be designated as Participants by the
Company’s Chief Executive Officer. Not later than the end of the first month of each Plan Year, the Committee shall fix a Participation Percentage and a Target Bonus for each Participant, provided that the Participation Percentage and Target
Bonus for a Participant who becomes a Participant during the Plan Year shall be fixed at the time such participation commences. 
  

	5.	CALCULATION OF EVA AND DETERMINATION OF BONUS POOL. 

  
 As soon as practicable following the close of each Plan Year, the Company shall determine, subject to review and approval by the Committee, the EVA for
such Plan Year upon which the Bonus Pool calculation shall be based. 
  

 For each Plan Year, a Bonus Pool shall be established by applying a formula to the EVA for the Plan Year.
Such formula shall utilize both a percentage of the change in the EVA of the Company from the prior Plan Year, whether positive or negative, plus a percentage of the positive EVA, if any, in the current Plan Year. Unless and until revised by the
Committee, the Bonus Pool for the Company shall be determined as follows: 
  

			
	 IF PRIOR YEAR EVA WAS:
	  	 THE CURRENT PLAN YEAR EVA FORMULA IS:

	 Positive
	  	 10% of the change in EVA (positive or negative)
 from prior Plan Year plus 6% of any positive
 EVA in current Plan Year

	 Negative
	  	 15% of the change in EVA (positive or negative)
 from prior Plan Year

  

	6.	DETERMINATION OF PARTICIPANT EVA AWARDS. 

  
 Each Participant’s EVA Award for a Plan Year shall be equal to the Bonus Pool for such Plan Year multiplied by such Participant’s Participation
Percentage. The Chief Executive Officer will retain discretion to revise a Participant’s Participation Percentage if the Chief Executive Officer deems it appropriate as circumstances develop during the Plan Year; provided, however, in the case
of an executive officer who is subject to the limitations of Section 162(m) of the Internal Revenue Code, such revision may be made only by the Committee and may only have a negative effect on the amount of such Participant’s EVA Award for the
Plan Year. As soon as practicable after the end of the Plan Year, the Committee will review and adopt a resolution approving the calculation of EVA, the Bonus Pool and the EVA Award for each Participant pursuant to the formula established at the
beginning of the year (revised downward if the Committee so determines); provided, however, that no EVA Award with respect to any executive officer who is subject to the limitations of Section 162(m) of the Internal Revenue Code may exceed
$3,000,000 for any particular Plan Year. 
  

	7.	ANNUAL PAYOUTS AND ALLOCATIONS TO PARTICIPANTS’ BANK ACCOUNTS. 

  
 (a) Annual Payout. As soon as practicable after each Participant’s EVA Award for a Plan Year has been determined, each Participant shall receive an
Annual Payout equal to the lesser of (i) the total amount of such EVA Award or (ii) the Participant’s Target Bonus. If a Participant’s EVA Award exceeds such Target Bonus amount for that Plan Year, the excess shall be credited to the
Participant’s Bank Account and there shall be added to the Annual Payout described in the immediately preceding sentence an amount equal to one-third (1/3) of the amount in the Participant’s Bank Account following such credit. If a
Participant’s EVA Award is less than the Target Bonus amount for that Plan Year, the Participant shall receive an additional amount from the Participant’s Bank Account until the total amount received, including the EVA Award, equals the
Target Bonus, and if there is any remaining amount in the Participant’s Bank Account after such payment, the Participant shall receive one-third of such remaining amount. All Annual Payouts shall be paid in a lump sum as soon as practicable
after the Annual Payout amounts are determined by the Committee. 
  
 (b) Bank Account. Following payment of the Annual Payout as described above, the remainder of the Bank Account balance will represent the Participant’s “equity” in his or her EVA Bank Account for future years. Interest shall
be credited to the undistributed positive amount credited to each Participant’s Bank Account at the rate of 6% per annum. 
  

	8.	TREATMENT OF PARTICIPANTS’ BANK ACCOUNTS UPON TERMINATION OF EMPLOYMENT OR OTHER EVENTS. 

  
 If a Participant leaves the Company by reason of termination or resignation or ceases to be eligible to participate in the
Plan, his or her Bank Account balance will be treated as follows: 
  

			
	 	  	DISPOSITION OF ACCOUNT
	EVENT	  	BALANCE/RESTRICTED SHARES*
	Terminate/quit	  	Lose Bank Account balance; forfeit unvested restricted shares
	Removed from plan/demotion	  	Bank Account balance paid out in two equal installments on the two succeeding Annual Payout dates; restricted shares continue to vest
	Unit sold by Crane Co.	  	Receive Bank Account balance in cash; all restricted shares become fully vested
	Normal retirement at age 65/death/disability	  	Receive Bank Account balance in cash; all restricted shares become fully vested
	Unit spun off	  	No payout; Bank Account balance continued with spun off company; all restricted shares become fully vested
	Crane Co. acquired	  	Receive Bank Account balance in cash; all restricted shares become fully vested
	Transfer to another business unit	  	Bank Account balance transfers with Participant to new unit; restricted shares continue to vest

  

	*	Refers to restricted shares granted to certain Participants in payment of Bank Account balances remaining after the Annual Payout for Plan Year 2002. 

  

	9.	MISCELLANEOUS. 

  
 (a) Plan Amendment and Termination. The Board may modify, suspend or terminate the Plan at any time. 
  
 (b) Effect of Award on Other Employee Benefits. By acceptance of
participation in this Plan, each Participant agrees that his or her EVA Award is special additional compensation and that it will not affect any employee benefit, e.g., life insurance, etc., in which the recipient participates, except that Annual
Payouts made under this Plan shall be included in the employee’s compensation for purposes of the Company’s qualified and nonqualified retirement and savings plan. 
  
 (c) Right to Continued Employment; Additional Awards. The receipt of an EVA Award shall not give the Participant any right
to continued employment, and the right and power to dismiss any Participant from his or her employment is specifically reserved to the Company. In addition, the receipt of an EVA Award with respect to any Plan Year shall not entitle the recipient to
an EVA Award with respect to any subsequent Plan Year. 
  
 (d)
Adjustments to Performance Goals. When a performance goal is based on EVA or other quantifiable financial or accounting measure, it may be necessary to exclude significant non-budgeted or non-controllable gains or losses from actual financial
results in order to properly measure performance. The Committee will decide those items that shall be considered in adjusting actual results. 
  

 (e) Withholding Taxes. The Company shall have the right to deduct from all payments under this Plan any
Federal, state or local taxes required by law to be withheld with respect to such payments. 
  
 (f) Governing Law. This Plan shall be construed in accordance with and governed by the laws of the State of Delaware, other than the conflict of law provisions thereof.Amendment dated April 23, 2004 to Agreement dated April 23, 2001

 EXHIBIT 10.3 
  
 AMENDMENT 
  
 THIS AMENDMENT is executed as of this 23rd day of April 2004 by and between Crane Co., a Delaware corporation (the “Company”) and Robert S.
Evans (“Mr. Evans”). 
  
 WHEREAS, the parties entered
into an Agreement dated as of April 23, 2001 pursuant to which the Company agreed to employ Mr. Evans as non-executive Chairman of the Board and Mr. Evans agreed to serve the Company in that position; and 
  
 WHEREAS, the parties desire to amend that Agreement in certain respects;

  
 NOW, THEREFORE, pursuant to the amendment provisions of
section 19 of the Agreement, the parties agree as follows: 
  
 1.
Base Salary. The base salary payable by the Company to Mr. Evans shall be $100,000 per annum, effective the date hereof. 
  
 2. Duties. Section 2 of the Agreement is hereby amended by deleting the last two sentences thereof. 
  
 3. Force and Effect. Except as specifically amended hereby, the
Agreement shall remain in full force and effect. 
  
 IN WITNESS
WHEREOF, the Company has caused this Amendment to be executed and Mr. Evans has hereunto set his hand as of the day and year first above written. 
  

			
	 CRANE CO.

		
	 By:
	 	 /s/ Eric C. Fast

	 	 	

	 	 	 Eric C. Fast
 President and Chief Executive Officer

  

	
	
	 /s/ Robert S. Evans

	

	 Robert S. Evans

  

 AGREEMENT 
  
 THIS AGREEMENT (this “Agreement), made as of this 23rd day of April, 2001 (the “Effective Date), by and between
Crane Co., a Delaware corporation (the “Company”), and Robert S. Evans (“Mr. Evans”). 
  
 WHEREAS, Mr. Evans has retired from his position as Chief Executive Officer of the Company after seventeen years of service in that capacity; 

 
 WHEREAS, the Company wishes to appoint Mr. Evans as non-executive Chairman
of the Board of Directors of the Company (the “Board”) and enter into an agreement with Mr. Evans with respect to such appointment; and 
  
 WHEREAS, Mr. Evans wishes to accept such appointment and to serve the Company on the terms and conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and intending to be legally bound, the parties hereto agree as follows: 
  
 1.
Position. Subject to the terms and provisions of this Agreement, the Company hereby confirms the appointment of Mr. Evans as non-executive Chairman of the Board (“Chairman”) and Mr. Evans hereby agrees to serve the Company in that
position; provided, however, that Mr. Evans’ continued service on the Board shall be subject to any necessary approval by the Company’s stockholders. Mr. Evans’ status during the Term (as defined in Section 3) shall be
that of an employee of the Company. 
  
 2. Duties. During the Term (as
defined in Section 3), Mr. Evans shall serve as Chairman, and Mr. Evans shall make reasonable business efforts to attend all Board meetings, serve on appropriate subcommittees as reasonably requested by the Board, and perform such duties, services
and responsibilities and have the authority commensurate to such position. Mr. Evans will devote at least fifty (50) days annually to the performance of such duties, services and responsibilities, and will use his best efforts to promote the
interests of the Company. During the minimum of fifty (50) days annually, Mr. Evans shall be available, as appropriate, either at the Company’s executive offices, or for reasonable and appropriate assignment outside of such offices. 

 
 3. Term. The term of this Agreement (the “Term”) shall be for a three
(3)-year period beginning on the Effective Date, unless otherwise terminated as provided herein. The Term shall be automatically extended upon the same terms and conditions contained herein for successive one-year periods unless a written notice of
termination is given by either party at least 90 days before the end of the Term or any renewals or extensions thereof. 
  
 4. Compensation and Benefits. 
  
 (a) Base Salary. During the Term, Mr. Evans shall receive an annual base salary of $400,000, subject to such increases as the Board may approve
from time to time. Such base salary shall be payable no less frequently than monthly, in accordance with the Company’s regular payroll practices. 
  
 (b) Expense Reimbursements. During the Term, the Company shall reimburse Mr. Evans for all reasonable out-of-pocket expenses incurred by Mr. Evans
in carrying out his duties, services and responsibilities under this Agreement, provided that Mr. Evans complies with the generally applicable policies, practices and procedures of the Company for submission of expense reports, receipts or similar
documentation of such expenses. 
  
 (c) EVA Incentive
Compensation Plan. As promptly as is practicable after execution of this Agreement, the Company shall pay to Mr. Evans in cash the full amount credited to his bank account under the Company’s EVA Incentive Compensation Plan as of March 31,
2001. Mr. Evans shall remain a participant in such Plan for 30% of the Corporate EVA Pool for the year 2001 prorated at 30.96% (113 days from 1/1/01-4/23/01 ÷ 365 days); and thereafter, Mr. Evans shall no longer be a participant in such Plan.

  

 (d) Pension Plans. As of the Effective Date, Mr. Evans shall cease his participation in the
Company’s 401(k) plan and its qualified and non-qualified pension plans. 
  
 (e) Restricted Stock Awards. Appendix A hereto lists the retirement-based restricted shares presently held by Mr. Evans. As of the Effective Date, such retirement restricted shares shall be deemed fully vested
and non-forfeitable. Appendix B hereto lists the performance-based restricted shares presently held by Mr. Evans. As of the Effective Date, the performance restricted shares granted on May 6, 1996 shall be forfeited and surrendered to the Company,
and the performance restricted shares granted on April 21, 1997 shall remain subject to the same terms and conditions as were applicable immediately prior to the execution of this Agreement. As of the Effective Date, Mr. Evans shall be granted
100,000 shares of Crane Common Stock (the “Restricted Stock”) under the Crane Co. Restricted Stock Award Plan or other applicable stock incentive plan (the “Restricted Stock Plan”). The Restricted Stock shall be subject to
transfer and forfeiture restrictions that shall lapse with respect to 50,000 shares on each of the second and third anniversaries of the date of grant. All of the terms and conditions of the Restricted Stock shall be governed by and set forth in a
written restricted stock agreement containing such terms and conditions, consistent with this Agreement and the Restricted Stock Plan, as are customary for such grants by the Company. 
  
 (f) Stock Options. Appendix C hereto lists the stock options presently held by Mr. Evans. As of the Effective Date,
such stock options shall be deemed fully vested and exercisable. In addition, as of the Effective Date, Mr. Evans shall be granted non-qualified stock options to purchase 250,000 shares of Crane Common Stock. The exercise price per share of each
such stock option shall be equal to the fair market value per share of the Common Stock on the date of grant of such option. For this purpose, the “fair market value” shall be determined by the average of the high and low prices of the
Common Stock on the New York Stock Exchange on the ten consecutive trading days ending on the date of grant. Each option shall vest and become exercisable 50% one year after the grant date, 75% two years after the grant date and 100% three years
after the grant date, and shall remain outstanding unless exercised for a term of 10 years notwithstanding any earlier termination of employment by Mr. Evans. All of the terms and conditions of each such option shall be governed by and set forth in
a written stock option agreement containing such terms and conditions, consistent with this Agreement and the applicable stock option plan, as are customary for such grants by the Company. 
  
 (g) Employee Benefits and Perquisites. 
  
 (1) Mr. Evans and, as applicable, his family, shall have the right to
participate in any employee benefit plans or other fringe benefit programs or perquisite arrangements maintained by the Company for its officers and/or other key management employees or as a part of the Company’s regular compensation structure
for its employees, including plans (to the extent offered) providing group hospitalization, medical, dental, accidental death and disability and long-term disability income replacement insurance benefits. 
  
 (2) Upon the termination of the group benefits described in Section 4(g)(1)
at the end of the Term or as otherwise provided under this Agreement, Mr. Evans and, as applicable, his family shall be entitled to any group medical and/or life insurance coverage or other benefits offered to Company retirees (and their families)
with similar years of service or any other applicable qualifications, including, but not limited to, retirees who, upon retirement, are eligible to receive an immediate retirement benefit under the Crane Co. Pension Plan for Non-Bargaining
Employees. 
  
 (h) Office, Assistance and Technical
Support. The Company shall provide Mr. Evans with an office and an office assistant at the Company’s business headquarters. Additionally, the Company will provide Mr. Evans with appropriate technical support for Mr. Evans’ office
outside of the Company’s headquarters. 
  
 (i) Company
Airplane. Mr. Evans shall be authorized to use the Company’s airplane for both business and personal use. The use of the Company’s airplane by Mr. Evans shall be subject to the approval of the Chief Executive Officer of the Company,
such approval not to be unreasonably withheld. 
  

 5. Death During Employment. 
  
 (a) If Mr. Evans dies during the Term, the Company shall pay to the estate of Mr. Evans the base salary to which he would
otherwise be entitled in accordance with Section 4(a) above for a period equal to the lesser of (i) twelve (12) months from the date of death or (ii) the balance of the Term. This Agreement shall thereupon terminate, and the Company shall have no
further obligation to the estate of Mr. Evans under the terms of this Agreement other than for compensation and benefits earned through the date of death. 
  
 (b) If Mr. Evans dies while payments are being made pursuant to Sections 8, 9 or 10, the balance of payments that would have been made to Mr. Evans shall
be paid to his designated beneficiary (or, if Mr. Evans has not designated a beneficiary, to his estate) in the same amounts and at the same times as would have been paid to Mr. Evans had he lived. 
  
 6. Permanent Disability During Employment. If Mr. Evans becomes permanently disabled
during the term of this Agreement, the Company shall pay to Mr. Evans the base salary to which he would otherwise be entitled in accordance with Section 4(a) above to the end of the month in which such permanent disability occurs and thereafter Mr.
Evans shall continue to receive such base salary, minus any payments provided by the Company’s benefit plans and by any government sponsored program, for a period equal to the lesser of (i) twenty-four (24) months or (ii) the balance of the
Term. This Agreement shall thereupon terminate and the Company shall have no further obligation to Mr. Evans except as may be provided under the Company’s short-term and long-term disability plans during the term of such disability. Permanent
disability for purposes of this Agreement shall mean a physical or mental condition of Mr. Evans that renders Mr. Evans incapable of performing the essential duties of his job and which condition shall be medically determined to be of permanent
duration as the same is construed under the Company’s disability plans. 
  
 7. Termination of Employment for Cause. The Company may terminate Mr. Evans’ employment at any time “for cause.” The term “for cause” shall mean (i) a material default or other breach by Mr. Evans of his
obligations under this Agreement or (ii) fraud, dishonesty, misappropriation of the Company’s assets, or conviction of a felony. Upon the occurrence of (i) above, the Company shall be entitled to terminate the employment relationship hereunder
upon thirty (30) days prior written notice to Mr. Evans, which notice shall state the reason for such termination and shall provide Mr. Evans an opportunity to remedy or cure such cause during such period. If such cause is not remedied or cured
during such period, the Company may terminate Mr. Evans’ employment immediately. In the event of a termination for cause, the Company shall have no obligation or liability to Mr. Evans under this Agreement except for the compensation and
benefits earned through the date of termination. 
  
 8. Termination of
Employment Without Cause. 
  
 (a) If the Company terminates
this Agreement for any reason other than for cause, as specified in Section 7 above, Mr. Evans shall be entitled to receive in a lump sum payment within thirty (30) days of the date of termination an amount equal to his then current monthly base
salary in accordance with Section 4(a) above times the number of full and partial months then remaining in the Term. Mr. Evans shall not be obligated in any way to mitigate the Company’s obligations to him under this Section 8 and any amounts
earned by Mr. Evans subsequent to his termination of employment shall not serve as an offset to the severance payments due him by the Company under this Section. 
  
 (b) If Mr. Evans is terminated without cause, to the extent permitted by law, he shall be permitted to continue to
participate for the balance of the Term in any and all of the medical, disability, life insurance, and other benefits in which he was participating at the time of termination. 
  
 (c) Payments and benefits under this Section 8 are in addition to and not in lieu of any benefits under the other benefit
programs of the Company. The Company shall thereafter have no other obligation or liability to Mr. Evans under this Agreement. 
  

 9. Termination of Employment For Good Reason. 
  
 (a) Mr. Evans may terminate his employment for Good Reason. For purposes of this Agreement, “Good Reason” shall
mean the occurrence of any of the following events: 
  
 (i) a material diminution in the scope of Mr. Evans’ assigned duties and responsibilities or the assignment of duties or responsibilities that are inconsistent with the Mr. Evans’ status in the Company; 
  
 (ii) a reduction by the Company in Mr. Evans’s base
salary; 
  
 (iii) a material reduction in any
benefits set forth in Section 4 other than due to an across-the-board reduction applicable to all similarly situated employees; 
  
 (iv) the Company’s requirement that Mr. Evans be based anywhere other than the Company’s executive offices in Stamford,
Connecticut; or 
  
 (v) the failure of a
successor to the Company to assume in writing the obligations of the Company under this Agreement upon becoming a successor of the Company. 
  
 (b) If Mr. Evans shall terminate his employment for Good Reason, he shall be entitled to receive in a lump sum payment within thirty (30) days of the date
of termination an amount equal to his then current monthly base salary in accordance with Section 4(a) times the number of full and partial months then remaining in the Term. Mr. Evans shall not be obligated in any way to mitigate the Company’s
obligations to him under this Section 9 and any amounts earned by Mr. Evans subsequent to his termination of employment shall not serve as an offset to the severance payments due him by the Company under this Section. 
  
 (c) If Mr. Evans shall terminate his employment for Good Reason, to the
extent permitted by law, he shall be permitted to continue to participate for the balance of the Term in any and all of the medical, disability, life insurance, and other benefits in which he was participating at the time of termination. 

 
 (d) Payments and benefits under this Section 9 are in addition to and not
in lieu of any benefits under the other benefit programs of the Company. The Company shall thereafter have no other obligation or liability to Mr. Evans under this Agreement. 
  
 10. Change in Control. 
  
 (a) This Section 10 shall be applicable only upon the occurrence of a Change of Control. For the purpose of this Agreement, a “Change of
Control” shall mean the occurrence of any of the following: 
  
 (i) the acquisition, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors, but excluding, for this purpose, any such acquisition by the Company or any of its subsidiaries, or any employee benefit plan (or related trust) of the Company or its
subsidiaries, or the Crane Fund, a charitable trust under the laws of the State of Illinois, or any corporation with respect to which, following such acquisition, more than 50% of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by substantially the same individuals
and entities who were the beneficial owners, respectively, of the common stock and voting securities of the Company immediately prior to such acquisition in substantially the same proportion as their ownership, immediately prior to such acquisition,
of the then outstanding shares of common stock of the Company or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, as the case may be; or 
  
 (ii) individuals who, as of the date hereof, constitute the
Board (as of the date hereof the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any individual becoming 

  

 
a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in
connection with an actual or threatened election contest relating to the election of the Directors of the Company (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act); or 
  
 (iii) approval by the stockholders of the Company of a
reorganization, merger or consolidation, in each case, with respect to which substantially the same individuals and entities who were the respective beneficial owners of the common stock and voting securities of the Company immediately prior to such
reorganization, merger or consolidation do not, following such reorganization, merger or consolidation, beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting
power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such reorganization, merger or consolidation, or a complete liquidation or dissolution of
the Company or of the sale or other disposition of all or substantially all of the assets of the Company. 
  
 (b) If a Change of Control occurs and Mr. Evans resigns from his position as Chairman of the Board, he shall be entitled to receive in a lump sum payment
within thirty (30) days of the date of such Change of Control an amount equal to his then current monthly base salary in accordance with Section 4(a) above times thirty-six (36). Mr. Evans shall not be obligated in any way to mitigate the
Company’s obligations to him under this Section 10 and any amounts earned by Mr. Evans subsequent to his termination of employment shall not serve as an offset to the severance payments due him by the Company under this Section. 
  
 (c) If a Change of Control occurs, to the extent permitted by law, Mr. Evans
shall be permitted to continue to participate for the balance of the Term in any and all of the medical, disability, life insurance, and other benefits in which he was participating at the time of termination. 
  
 (d) Payments and benefits under this Section 10 are in addition to and not in
lieu of any benefits under the other benefit programs of the Company. The Company shall thereafter have no other obligation or liability to Mr. Evans under this Agreement. 
  
 11. Non-Waiver of Rights. The failure to enforce at any time the provisions of this Agreement or to require at any time performance
by the other party of any of the provisions hereof 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 hereof, or the right of either party to enforce each and every provision
in accordance with its terms. No waiver by either party hereto of any breach by the other party hereto of any provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions at that time
or at any prior or subsequent time. 
  
 12. Notices. Every notice relating
to this Agreement shall be in writing and shall be given by personal delivery by registered or certified mail, or by Federal Express postage prepaid, return receipt requested; to: 
  
 If to the Company: 
  
 Crane Co. 
 100 First Stamford Place

 Stamford, CT 06902 
 Attention:
Corporate Secretary 
  
 If to Mr. Evans: 
  
 Robert S. Evans 
 114 Glenwood Drive 
 Greenwich, CT 06830

  

 Either of the parties hereto may change their address for purposes of notice hereunder by giving notice
in writing to such other party pursuant to this Section 12. 
  
 13. Tax
Withholding. The payments to Mr. Evans under this Agreement shall be subject to all applicable tax withholdings. 
  
 14. Binding Effect/Assignment. This Agreement is personal to Mr. Evans and without the prior written consent of the Company shall not be assignable by Mr. Evans.
This Agreement shall inure to the benefit of and be enforceable by Mr. Evans’ legal representatives. 
  
 15. Entire Agreement. This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, written or oral, between them as to
such subject matter. Notwithstanding the foregoing, the Indemnification Agreement between Mr. Evans and the Company, dated as of January 22, 1996, and the stock option and restricted stock agreements evidencing the option and restricted stock awards
described in Appendix A, Appendix B and Appendix C hereto (other than the restricted stock award dated May 6, 1996) shall remain in full force and effect in accordance with their respective terms, but the Employment/Severance Agreement between Mr.
Evans and the Company, dated as of March 1, 1995, shall be deemed terminated in its entirety upon execution of this Agreement. 
  
 16. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of
this Agreement. 
  
 17. Governing Law. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of Delaware, without reference to principles of conflict of laws. 
  
 18. Legal Fees. The parties hereto agree that the non-prevailing party in any dispute, claim, action or proceeding between the parties hereto arising out of or
relating to the terms and conditions of this Agreement or any provision thereof (a “Dispute”), shall reimburse the prevailing party for reasonable attorney’s fees and expenses incurred by the prevailing party in connection with such
Dispute; provided, however, that Mr. Evans shall only be required to reimburse the Company for its fees and expenses incurred in connection with a Dispute, if Mr. Evans’ position in such Dispute was found by the court, arbitrator or other
person or entity presiding over such Dispute to be frivolous or advanced not in good faith. 
  
 19. Modifications. Neither this Agreement nor any provision hereof may be modified, altered, amended or waived except by an instrument in writing duly signed by the party to be charged. 
  
 20. Tense and Headings. Whenever any words used herein are in the singular form, they
shall be construed as though they were also used in the plural form in all cases where they would so apply. The headings contained herein are solely for the purposes of reference, are not part of this Agreement and shall not in any way affect the
meaning or interpretation of this Agreement. 
  
 21. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
  

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by authority of its Board of
Directors, and Mr. Evans has hereunto set his hand, on the day and year first above written. 
  

			
	 CRANE CO.

		
	 By:
	 	 
	 	 	

		
	 Title
	 	 
	 	 	

  

	
	
	  
	

	 Robert S. Evans

  

 Appendix A 
  
 Retirement-Based Restricted Shares  
 held by R. S. Evans 
  

			
	 Award Date

	  	 Current
Outstanding
 Shares

	 May 8, 1995
	  	254,003
	 May 6, 1996
	  	43,523
	 April 21, 1997
	  	21,088
	 April 20, 1998
	  	12,764
	 May 26, 2000
	  	165,850

  

 Appendix B 
  
 Performance-Based Restricted Shares  
 held by R. S. Evans 
  

			
	 Award Date

	  	Current
Outstanding
Shares

	 May 6, 1996
	  	95,132
	 April 21, 1997
	  	79,277

  

 Appendix C 
  
 Non-Qualified Stock Options  
 held by R. S. Evans 
  

								
	 Grant Date

	  	Total
Shares

	  	Exercisable*

	  	Option
Price

	 May 8, 1995
	  	73,188	  	73,188	  	$	14.12
	 May 6, 1996
	  	73,188	  	73,188	  	$	16.96
	 April 21, 1997
	  	97,584	  	97,584	  	$	20.71
	 April 20, 1998
	  	260,225	  	195,168	  	$	33.54
	 April 5, 1999
	  	216,854	  	108,427	  	$	21.96
	 January 24, 2000
	  	175,000	  	—  	  	$	19.86

  

	*	All options vest 50% after one year, 75% after two years and 100% after three years.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]