Document:

Exhibit

Exhibit 10.7

                        
                    

Dear <first_name> <last_name>:

I am pleased to advise you that the Management Organization & Compensation Committee of the Board of Directors of Crane Co., pursuant to the Company’s 2018 Stock Incentive Plan, has granted you a performance-based restricted share unit award (“Units”), entitling you to receive a number of shares of common stock of Crane Co. determined as set forth below in the event the applicable conditions on the award are satisfied.  The key terms of your award are summarized below, but your award is subject to all of the terms and conditions set forth in the attached Annex A, Restricted Share Unit Award – Performance-Based Vesting, and the attached Annex B, Performance Vesting Conditions, each of which is incorporated herein by reference.  

		
	Grant Date:
	<award_date>

# of Restricted Share Units (at Target Performance):  <shares_awarded>

		
	Vesting:
	The award will vest based on the performance conditions set forth on Annex B.  In addition, you must remain employed through the end of the “Performance Period” as defined in Annex B, except that the award may also vest in case of death, Permanent Disability, Qualifying Retirement, or a Qualifying Termination within two years after a Change in Control.  See Section 2 of Annex A.

		
	Dividends:
	You will not be entitled to receive payments of amounts equal to cash dividends payable on the Company’s stock for any Units prior to the date such Units vest.  Your right to receive dividends will begin only after you receive any shares of Common Stock upon settlement.  See Section 2(d) of Annex A.  

		
	Settlement:
	Upon vesting and meeting all applicable conditions, you will be issued shares of Common Stock representing the number of Units that are deemed to have vested.  See Section 3 of Annex A.

		
	Taxation:
	Income taxes will be payable upon vesting and settlement of your Units.  See Section 10 of Annex A.  Income taxes will not be grossed‐up upon vesting. 

In conjunction with this award, you are required to sign a Confidentiality & Non-competition agreement, which you will receive in a separate email.  Please sign, scan and return the Confidentiality & Non-competition agreement to Equityaward@craneco.com.    

If Crane Co. is not in receipt of your executed Confidentiality & Non-competition agreement and/or you have not accepted this grant online within 30 days of receipt of this letter, this grant will be null and void.

Your online acceptance of this grant and return of the Confidentiality & Non-competition agreement will constitute a binding agreement for the award set forth in this letter and subject to the terms and conditions set forth in Annex A and Annex B (Effective Date: <award_date>).
        
Very truly yours,
                            
Max H. Mitchell
President and Chief Executive Officer

ANNEX A

RESTRICTED SHARE UNIT AWARD
PERFORMANCE-BASED VESTING
UNDER THE CRANE CO. 2018 STOCK INCENTIVE PLAN
    
DATED AS OF <award_date>

The Company hereby grants to the recipient of the letter of the President and/or Secretary of the Company (“Letter”) to which this Annex A is attached (“Employee” or “you”), and the Employee accepts, an award (the “Award”) of a number of Performance-Based Restricted Share Units (“Units”), which represent a contingent right to receive shares of Crane Co. common stock, par value $1.00 (“Crane Shares”).  Annex B to the Letter sets forth certain performance-based vesting conditions applicable to this Award.  The Letter, this Annex A and Annex B together constitute the restricted share unit award agreement between the parties (the “Agreement”).  

The Award is granted under, and is subject to, the Crane Co. 2018 Stock Incentive Plan (the “Plan”).  Unless otherwise defined herein, all capitalized terms have the meanings ascribed to them in the Plan. A Prospectus for the 2018 Stock Incentive Plan is attached to this Agreement as Annex C.

1.  DEFINITIONS

For purposes of the Award, and for purposes of interpreting the terms of the Plan, the following terms shall have the following meanings:

		
	(a) 
	“Cause” means, with respect to the Employee, any of the following as determined by the Company; (i) personal dishonesty or breach of fiduciary duty by the Employee involving personal profit at the expense of the Company; (ii) repeated violations by the Employee of the Employee’s obligations under any written employment or other agreement with the Company which are demonstrably willful and deliberate on the Employee’s part and which are not remedied in a reasonable period of time after receipt of written notice from the Company; (iii) the Employee’s commission of a criminal act related to the performance of the Employee’s duties, or the Employee’s furnishing of proprietary confidential information about the Company to a competitor, or potential competitor, or third party whose interests are adverse to those of the Company; (iv) the Employee’s habitual intoxication by alcohol or drugs during work hours; or (v) the Employee’s conviction of a felony.

		
	(b)
	“Change in Control” shall have the meaning set forth in Section 2(e) of the Plan.

		
	(c)
	“Committee” shall mean the Management Organization and Compensation Committee of the Company’s Board of Directors.

		
	(d)
	“Competition” means the Employee has, in any capacity, directly or indirectly, gone into any business or become employed by or associated with any other business which is in competition with a line of business in which the Employee is employed by the Company or has been employed by the Company within one year prior to the date of the Employee’s termination of employment, in any state within the United States or in any foreign country in which the Company conducts business.  In no event shall the Company determine there to be 

“Competition” solely because the Employee beneficially owns less than 5% of the combined voting power of all issued and outstanding voting securities of a publicly held corporation.

		
	(e)   
	“Good Reason” shall mean, provided that the Employee has complied with the Good Reason Process, the occurrence of any of the following events without the Employee’s consent; (i) a material diminution in the Employee’s responsibility, authority or duty; (ii) a material diminution in the Employee’s base salary except for across-the-board salary reductions based on the Company and its Subsidiaries’ financial performance similarly affecting all or substantially all management employees of the Company and its Subsidiaries; or (iii) the relocation of the office at which the Employee was principally employed immediately prior to a Change in Control to a location more than fifty (50) miles from the location of such office, or the Employee being required to be based anywhere other than such office, except to the extent the Employee was not previously assigned to a principal location and except for required travel on the Employee’s employer’s business to an extent substantially consistent with the Employee’s business travel obligations at the time of the Change in Control.

		
	(f)
	“Good Reason Process” shall mean that (i) the Employee reasonably determines in good faith that a Good Reason condition has occurred; (ii) the Employee notifies the Company and its Subsidiaries in writing of the occurrence of the Good Reason condition within sixty (60) days of such occurrence; (iii) the Employee cooperates in good faith with the Company and its Subsidiaries’ efforts, for a period of not less than thirty (30) days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist following the Cure Period; and (v) the Employee terminates the Employee’s employment for Good Reason within sixty (60) days after the end of the Cure Period.  If the Company or its Subsidiaries cures the Good Reason condition during the Cure Period, and the Employee terminates the Employee’s employment with the Company and its Subsidiaries due to such condition (notwithstanding its cure), then the Employee will not be deemed to have terminated the Employee’s employment for Good Reason.  

		
	(g) 
	“Performance Period” shall be as defined in Annex B.

		
	(h)
	“Permanent Disability” shall mean a physical or mental disability or infirmity that prevents the performance of an Employee’s services for the Company and its Affiliates lasting (or likely to last, based on competent medical evidence presented to the Committee) for a period of six months or longer.  The Committee’s determination of Permanent Disability shall be final and shall be based on such competent medical evidence as shall be presented to it by such Employee or by any physician or group of physicians or other competent medical expert employed by the Employee or the Company to advise the Committee.

		
	(i) 
	“Qualifying Retirement” shall mean the Employee’s termination of employment for any reason other than death, Permanent Disability or Cause upon or after the earlier of the date that the Employee attains (i) age sixty-five (65), or (ii) age sixty-two (62) and would be credited with at least ten (10) “Years of Service” (as defined in Crane Co.’s Pension Plan for All Eligible Employees or the equivalent service term in any successor to the Pension Plan, and regardless of whether the Employee is a participant in such Pension Plan).  Notwithstanding the foregoing, if the Employee’s termination of employment during the two-year period following a Change in Control could be treated as either a Qualifying Retirement or a Qualifying Termination, it shall be treated as a Qualifying Termination for purposes of Section 2(c) below.

		
	(j) 
	“Qualifying Termination” shall mean the Employee’s termination of employment by the Company without Cause or by the Employee for Good Reason.

		
	(k)
	“Restriction Period” shall mean the period commencing on the date of a Change in Control that occurs during the Performance Period and ending on the last day of the Performance Period.

2.  RESTRICTIONS AND RIGHTS 

		
	(a)
	The number of Units that become earned and payable shall be determined at the end of the Performance Period in accordance with the performance-based vesting conditions set forth on Annex B, except as otherwise expressly provided in Section 2(c)(i) below.

		
	(b)
	In addition, except as otherwise expressly provided herein, the Employee must remain employed with the Company through the end of the Performance Period.  Notwithstanding the foregoing, the following provisions shall apply:

(i)    In the event of the Employee’s death or Permanent Disability, the Award will become earned and payable to the Employee based on the actual performance determined after the end of the Performance Period without being pro-rated due to the termination of employment. 

(ii)    In the event of the Employee’s Qualifying Retirement during the Performance Period, the Award will become earned and payable to the Employee based on the actual performance determined after the end of the Performance Period without being pro-rated due to the termination of employment; provided, however, that to the extent permissible under applicable law, if the Employee engages in Competition at any time before the end of the Performance Period, the Award will be forfeited.

(iii)    In the event of the Employee’s involuntary termination for Cause after the end of the Performance Period but before issuance of Crane Shares in accordance with Section 3(a) below, the Award will be forfeited.

		
	(c)
	Notwithstanding any other provision of the Award or the Plan to the contrary, in the event of a Change in Control the following provisions shall apply:

    
		
	(i)
	The number of Units shall be determined as of the date of the Change in Control as follows, and shall not thereafter be subject to adjustment as provided in Annex B:

		
	(A)
	if the Change in Control occurs on or before ________, the number of Units shall equal 100% of the Units (i.e., the number at target performance); and

        
		
	(B)
	if the Change in Control occurs after __________, the number of Units shall be determined under Annex B as if the Performance Period had ended immediately prior to the Change in Control.

		
	(ii)
	The Units determined under Section 2(c)(i) shall be subject to forfeiture and may not be sold, transferred, assigned or pledged (the “Restrictions”) during the Restriction Period.

The Restrictions on the Units shall automatically lapse:

		
	(A)
	as to 100% of the Units as of the last day of the Restriction Period; or

        
		
	(B)
	if earlier, in the event of the Employee’s Permanent Disability or death; or

		
	(C)
	as may be otherwise provided under the terms of the Plan.

Notwithstanding the foregoing or any other provision of this Award or the Plan to the contrary, if the Employee shall cease to be employed by the Company or by a Subsidiary by reason of a Qualifying Retirement during the Restriction Period, the Restrictions on the Units shall continue to lapse in accordance with the schedule set forth in this Section 2(c)(ii) as if the Employee’s employment had not terminated; provided, however, that to the extent permissible under applicable law, if the Employee engages in Competition at any time before the earlier of the events in Section 2(c)(ii)(A) or (B), then those Units as to which the Restrictions have not yet lapsed will be forfeited.

In addition, and notwithstanding the foregoing or any other provision of this Award or the Plan to the contrary, in the event of the Employee’s Qualifying Termination within two years after the Change in Control, the Restrictions on the Units shall automatically lapse upon such Qualifying Termination; provided, however, that if the Employee is otherwise eligible for Qualifying Retirement at the time of such Qualifying Termination, the Restrictions shall instead lapse at the earlier of the events in Section 2(c)(ii)(A) or (B) above as if the Employee’s employment had not terminated but without regard to any requirement not to engage in Competition that would otherwise apply in connection with a Qualifying Retirement.    
 
		
	(d)
	The Employee shall have no rights as a stockholder of the Company by virtue of any Unit unless and until such Unit vests and resulting Crane Shares are issued to the Employee.  In that regard, the Employee shall have no right to receive any cash payments during the Performance Period with respect to any dividends or other distributions declared by the Company with respect to the Crane Shares; provided, however, that the Award shall be subject to adjustment in accordance with, and subject to, the provisions of Section 10 of the Plan (regarding potential adjustments for certain capital changes).  

3.  ADMINISTRATION OF UNITS

		
	(a)
	The Units granted under this Award shall be reflected in a bookkeeping account maintained by the Company during the Performance Period and through the date of settlement.  To the extent any Units become earned and payable in accordance with the terms of this Award, and upon the satisfaction of all other applicable conditions as to the Units, the Company shall deliver to the Employee one or more stock certificates for such number of unrestricted Crane Shares equal to the applicable number of Units, registered in the name of the Employee, subject to applicable tax withholding requirements.  The applicable number of Crane Shares shall be issued no later than March 15 following the end of the Performance Period, provided that in the case of a Change in 

Control, the applicable number of Crane Shares (subject to adjustment in connection with the Change in Control in accordance with Section 10 of the Plan) shall be issued on or as soon as administratively practicable (but not more than 45 days) after the applicable date the Restrictions lapse as provided in Section 2(c)(ii).

		
	(b)
	To the extent that this Agreement or the Plan provide for or otherwise refer to issuance of certificates to reflect the transfer of Crane Shares pursuant to the terms of this Award, the transfer of such shares may be effected, in the Company’s discretion, on a book entry or such other noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange on which such shares are listed.

4.  TERMINATION OF EMPLOYMENT

Except as otherwise provided for in Sections 2(b) and (c), the Employee’s termination of employment during the Performance Period (or the Restriction Period, if applicable) shall result in the forfeiture of all Units.

5.  COVENANTS BY EMPLOYEE

		
	(a)
	The Employee agrees to be bound by all terms and provisions of the Plan, receipt of a copy of which is acknowledged by the Employee’s signature, and all such provisions are incorporated herein and shall be deemed a part of the Award for all purposes.

		
	(b) 
	The Employee agrees to provide the Company, when and if requested, with any information or documentation which the Company believes necessary or advisable in connection with the administration of the Plan, including data required to assure compliance with the requirements of the Securities and Exchange Commission, of any stock exchange upon which the Crane Shares are then listed, or of any applicable federal, state or other law.

6.  NO COVENANT OF EMPLOYMENT

Neither the granting of any award of Units, nor the execution and delivery of any document evidencing such award, shall constitute, or be evidence of, any agreement or understanding, express or implied, on the part of the Company or its Subsidiaries to employ the Employee for any specific period.

7.  ADMINISTRATION AND INTERPRETATION OF PLAN 
     AND AGREEMENT

In the event of any conflict between the terms herein and those of the Plan, the provisions of the Plan shall prevail.

The Committee shall have full authority and discretion, subject only to the terms of the Plan, to decide all matters relating to the administration or interpretation of the Plan and the Award thereunder, and all such action by the Committee shall be final, conclusive, and binding upon the Company and the Employee.  The Committee shall have full authority and discretion to modify at any time the terms and conditions of the Award, the stock certificate legend(s) and any other instrument evidencing this Award, provided that no such modification shall increase the benefit under the Award beyond that which the Committee could have originally granted at the time of the Award, or shall impair the rights of the 

Employee under the Award except in accordance with the Plan, or any applicable agreement or applicable law, or with consent of the Employee.

The Award is deemed to be issued in, and shall be governed by the laws of, the State of Delaware.  There have been no representations to the Employee other than those contained herein.

This Agreement sets forth a complete understanding between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements and understandings with respect thereto.  Any modification, amendment or waiver to this Agreement will be effective only if it is in writing signed by the Company and the Employee.  The failure of any party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of that or any other provision of this Agreement.

The Company’s obligations under this Agreement shall be unfunded and unsecured, and no special or separate fund shall be established and no other segregation of assets shall be made.  The rights of the Employee under this Agreement shall be no greater than those of a general unsecured creditor of the Company.  In addition, the Units shall be subject to such restrictions as the Company may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which Crane Shares are then listed, any Company policy and any applicable federal or state securities law.

If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version differs from the English version, the English version shall control.

The Company reserves the right to impose other requirements on your participation in the Plan, on the Award and on any Crane Shares acquired under the Plan, to the extent that the Company determines it is necessary or advisable in order to comply with local laws or facilitate the administration of the Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

8.  AMENDMENT

The terms of the Award shall be subject to the terms of the Plan as the Plan may be amended from time to time by the Board of Directors of the Company unless any Plan amendment by its terms or by its clear intent is inapplicable to the Award.

9.  NOTICE
The Company may, in its sole discretion, decide to deliver any documents related to this Award or future Awards that may be granted under the Plan by electronic means or request the Employee’s consent to participate in the Plan by electronic means.  The Employee hereby consents to receive such documents by electronic delivery and, if requested, agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.  

Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, by fax, by electronic mail or other electronic means, or via a postal service, postage prepaid, to such electronic mail or postal address and directed to 

such person as the Company may notify the Employee from time to time; and to the Employee at the Employee’s electronic mail or postal address as shown on the records of the Company from time to time, or at such other electronic mail or postal address as the Employee, by notice to the Company, may designate in writing from time to time.
10.  WITHHOLDING TAXES

Regardless of any action the Company takes with respect to any or all income tax, payroll tax or other tax-related withholding (“Tax-Related Items”), the Employee acknowledges that the ultimate liability for all Tax-Related Items owed by the Employee is and remains the Employee’s responsibility and that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant or vesting of the Units and the subsequent sale of shares acquired upon vesting; and (ii) does not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Employee’s liability for Tax-Related Items.

Prior to vesting of the Units, the Employee shall pay or make adequate arrangements satisfactory to the Company to satisfy all withholding obligations of the Company.  In this regard, the Employee authorizes the Company to withhold all applicable Tax-Related Items legally payable by the Employee from the Employee’s wages or other cash compensation paid to the Employee by the Company or from proceeds of the sale of the shares.  Alternatively, or in addition, to the extent permissible under applicable law, the Company may (i) sell or arrange for the sale of shares that the Employee acquires to meet the withholding obligation for Tax-Related Items, and/or (ii) withhold in shares, provided that the Company only withholds the amount of shares necessary to satisfy the minimum withholding amount.  Finally, the Employee shall pay to the Company any amount of Tax-Related Items that the Company may be required to withhold as a result of the Employee’s participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue and deliver shares in payment of any earned Units if the Employee fails to comply with the Employee’s obligations in connection with the Tax-Related Items as described in this Section 10.

11.  COMPLIANCE WITH SECTION 409A

For purposes of this Award, and solely to the extent necessary or advisable to comply with any applicable requirements of Section 409A of the Code and the regulations thereunder, references to “termination of employment” shall be deemed to mean a “separation from service” as that term is defined under Treasury Reg. Section 409A-1(h). Notwithstanding any other provisions of this Agreement to the contrary, and solely to the extent necessary for compliance with Section 409A and not otherwise eligible for exclusion from the requirements of Section 409A, if the Employee becomes entitled to settlement of any Units in connection with the Employee’s termination of employment (other than due to death) and the Employee is deemed to be a “Specified Employee” (as defined under Section 409A of the Code) as of the date of such termination of employment, no settlement or other distribution required to be made to the Employee hereunder (including any payment of cash, any transfer of property and any provision of taxable benefits) shall be made earlier than the date that is six (6) months and one day following the date of the Employee’s termination of employment with the Company.

12.  RECOVERY OF COMPENSATION IN CERTAIN CIRCUMSTANCES

Notwithstanding any other provision of this Agreement, if the Committee determines that the Company is required to restate its financial statements due to material noncompliance with any financial reporting requirement under the law, whether such noncompliance is the result of misconduct or other circumstances, the Employee shall be required to reimburse the Company for any amounts earned or payable with respect to this Award to the extent required by and otherwise in accordance with applicable law and any Company policies.

13.  DATA PRIVACY

The Employee voluntarily acknowledges and consents to the collection, use, processing and transfer of personal information as described in this Section.  The Employee is not obliged to consent to such collection, use, processing and transfer of personal information.  However, failure to provide the consent may affect the Employee’s ability to participate in the Plan.  The Company and its Affiliates hold certain personal information about the Employee, including the Employee’s name, home address, business segment and unit, PeopleSoft ID (if available), hire date, Social Security number or other National ID number, salary, job title, any shares of stock or directorships held in the Company and details of any shares of stock awarded, cancelled, purchased, vested, unvested or outstanding in the Employee’s favor, for the purpose of managing and administering the Plan (“Data”).  The Company and its Affiliates will transfer Data among themselves as necessary for the purpose of implementation, administration and management of the Employee’s participation in the Plan, and the Company and its Affiliates may each further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients may be located in the European Economic Area or elsewhere throughout the world in countries that may not provide an equivalent level of data protection to the laws in the Employee’s home country, such as the United States.  The Employee authorizes them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Employee’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and the subsequent holding of Shares on the Employee’s behalf by a broker or other third party with whom the Employee may elect to deposit any Shares acquired pursuant to the Plan.  The Employee may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Company; however, withdrawing consent may affect the Employee’s ability to participate in the Plan.

14.  ADDITIONAL ACKNOWLEDGEMENTS

By entering into this Agreement and accepting the Award evidenced hereby, you acknowledge and agree that:

(a)    the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, suspended or terminated by the Company at any time, as provided in the Plan and this Agreement;

(b)    the Award is voluntary and occasional and does not create any contractual or other right to receive future Awards under the Plan, or benefits in lieu of Awards, even if Awards have been awarded repeatedly in the past;

(c)    all decisions with respect to future Awards, if any, will be at the sole discretion of the Company; 

(d)    your participation in the Plan shall not create a right to further employment with your actual employer (the “Employer”) and shall not interfere with the ability of the Employer to terminate your employment relationship at any time, with or without cause;

(e)    you are voluntarily participating in the Plan;

(f)    the Award is an extraordinary item, and any amounts received from the Award are outside the scope of your employment contract, if any;

(g)    the Award is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement benefits or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or the Employer or any subsidiary of the Company;

(h)    the Award is not intended to replace any pension rights or compensation;

(i)    in no event will the Award be interpreted to form an employment contract or relationship with the Company or any Subsidiary;

(j)    the future value of the Award is unknown and cannot be predicted with certainty;

(k)    if you receive Crane Shares upon settlement of the Award, the value of those shares may increase or decrease;

(l)    in consideration of the Award, no claim or entitlement to compensation or damages shall arise from the forfeiture, expiration or termination of the Award resulting from your termination of employment with the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and you irrevocably release the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing this Agreement, you shall be deemed irrevocably to have waived your entitlement to pursue such claim;

(m)    notwithstanding any terms or conditions of the Plan to the contrary, in the event of involuntary termination of your employment, your rights under the Award, if any, will terminate at the time and in accordance with the terms set forth in this Agreement and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of involuntary termination of employment (whether or not in breach of local labor laws), your rights under the Award after termination of employment, if any, will be measured by the date of termination of your active employment and will not be extended by any notice period mandated under local law; the Committee shall have the exclusive discretion to determine when you are no longer actively employed for purposes of the Award;

(n)    it is your sole responsibility to investigate and comply with any exchange control laws applicable to you in connection with the Award or its exercise; and

(o)    the Award and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, takeover or transfer of liability.

ANNEX B

PERFORMANCE VESTING CONDITIONS
FOR RESTRICTED SHARE UNIT AWARD
UNDER THE CRANE CO. 2018 STOCK INCENTIVE PLAN

DATED AS OF <award_date>

The Company hereby grants to the recipient of the letter of the President and/or Secretary of the Company (“Letter”) to which this Annex B is attached (“Employee”), and the Employee accepts, an award (the “Award”) of a number of Performance-Based Restricted Share Units (“Units”), which represent a contingent right to receive shares of Crane Co. common stock, par value $1.00 (“Crane Shares”).  Annex A to the Letter sets forth certain additional terms and conditions to the Award.  This Annex B to the Letter sets forth certain performance-based vesting conditions applicable to this Award, as referenced in Section 2(a) of Annex A.  The Letter, Annex A and this Annex B together constitute the restricted share unit award agreement between the parties (the “Agreement”).  

The Award is granted under, and is subject to, the Crane Co. 2018 Stock Incentive Plan (the “Plan”).  Unless otherwise defined herein, all capitalized terms have the meanings ascribed to them in the Plan or as set forth in Annex A.  

1.  DEFINITIONS

For purposes of the Award, and for purposes of interpreting the terms of the Plan, the following terms shall have the following meanings:

		
	(a)
	“Beginning Price” means the 20-day average of the closing prices of the applicable stock for the last twenty trading days immediately preceding the beginning of the Performance Period.  The “Beginning Price” may be equitably adjusted by the Committee in its discretion to reflect any material changes in the applicable company’s capital structure during the Performance Period, such as a stock split, reverse stock split, stock dividend, split up, spin-off, or other distribution, combination or exchange of such company’s stock.

		
	(b)
	“Comparator Group” means the set of companies that are in the S&P MidCap 400 Capital Goods Group at the beginning of the Performance Period.  Any such company that is no longer publicly traded on the last day of the Performance Period shall be excluded from the Comparator Group, provided that a company that ceases to be publicly traded as a result of insolvency or bankruptcy proceeding shall be included.  Crane Co. shall be excluded from the Comparator Group.  

		
	(c)
	“Ending Price” means the 20-day average of the closing prices of the applicable stock for the last twenty trading days of the Performance Period.

		
	(d)
	“Performance Period” means the three year period beginning ________ and ending __________. 

		
	(e)
	“Total Shareholder Return” for a given company means:

(Ending Price – Beginning Price) + dividends (assuming reinvestment as of ex-dividend date)

divided by

Beginning Price

2.  PERFORMANCE-BASED VESTING SCHEDULE

Subject to the provisions of Section 3 below, the number of Units earned shall be based on the relative performance of the Company’s Total Shareholder Return compared to that of the companies that comprise the Comparator Group, based on the percentile performance of the Company against those Comparator Group companies over the Performance Period, as follows:

	
		
	Total Shareholder Return
Percentile Ranking
	Percentage of Units Earned
(%)

	Below 25th Percentile
	0

	25th Percentile (Threshold)
	25

	50th Percentile (Target)
	100

	75th Percentile or higher (Maximum)
	200

For performance between Threshold and Target or between Target and Maximum, the percentage of Units earned shall be interpolated on a straight line basis.

3.  LIMITATIONS

Notwithstanding any provision herein to the contrary, the number of Units earned under this Award shall be subject to the following limitations:

		
	(a)
	The aggregate value of the Units earned based on the Ending Price for the Crane Shares shall not exceed four times the value of the target number of Units based on the Beginning Price for the Crane Shares.  The number of Units earned shall be reduced to the extent necessary to meet this limitation, rounded down to the nearest whole Unit.

		
	(b)
	If Total Shareholder Return for the Company for the Performance Period is negative, then the maximum percentage of Units earned shall be 100% (rather than 200%).

4.  DETERMINATIONS

All calculations and determinations under this Annex B, including without limitation (i) the determination of Total Shareholder Return for any company, (ii) the Company’s percentile ranking, (iii) the percentage of Units earned and (iv) the application of the limitations under Section 3, shall be made by the Committee in the exercise of its sole discretion, and all such calculations and determinations shall be final.Exhibit

Exhibit 10.1

AMAG PHARMACEUTICALS, INC.
Amended and Restated Non-Employee Director Compensation Policy
Effective January 1, 2015, as amended April 4, 2018)

The Board of Directors (the “Board”) of AMAG Pharmaceuticals, Inc. (the “Company” or “AMAG”) has approved this Amended and Restated Non-Employee Director Compensation Policy (the “Policy”) to establish compensation to be paid to non-employee directors of the Company or any Affiliate, effective as of January 1, 2015, which policy supersedes in its entirety the policy previously amended and restated effective January 1, 2012, to provide an inducement to obtain and retain the services of qualified persons to serve as members of the Company’s Board.  Each such Director will receive as compensation for his or her services equity grants and cash compensation, all as further set forth herein.

1.    Applicable Persons

This Policy shall apply to each member of the Board of the Company who is not an employee of the Company or an Affiliate (each, an “Outside Director”).  Affiliate shall mean a corporation which is a direct or indirect parent or subsidiary of the Company, as determined pursuant to Section 424 of the Internal Revenue Code of 1986, as amended.

2.    Equity Grants

A.    Equity Grant Upon Initial Appointment or Election as a Director

Each new Outside Director, on the date of his or her initial appointment or election to the Board, will receive an equity grant comprised of two components: (i) an inducement grant and (ii) an annual grant.

As an inducement to joining the Board, each new Outside Director will be granted a non-qualified stock option to purchase 6,000 shares of the Company’s common stock pursuant to the Company’s Third Amended and Restated 2007 Equity Incentive Plan, as it may be amended
from time to time (the “Stock Plan”), subject to automatic adjustment in the event of any stock split or other recapitalization affecting the Company’s common stock.  Such option shall vest in equal monthly installments over a period of two (2) years from the date of his or her election to the Board, provided such Outside Director continues to serve as a member of the Board.

Upon joining the Board, each new Outside Director who joins the Board subsequent to the date of the Annual Meeting of Stockholders will also receive an annual equity grant of non-qualified stock options and restricted stock units (“RSUs”) on the date of his or her appointment or election as described below under the heading “Annual Equity Grant;” provided, that the amount of options and RSUs granted to such new Outside Director will be pro-rated based on the number of expected whole months of service before the next Annual Meeting of Stockholders; provided further, that such options and RSUs will vest in equal monthly installments beginning on the first day of the first full month following appointment or election and continuing on the first day of each month thereafter 

through the first day of the month in which the next Annual Meeting of Stockholders is to be held, so long as the newly-appointed Outside Director continues to serve as a member of the Board.

As an example, assume the Company’s Annual Meeting of Stockholders is expected to be held in May, and the annual equity grant for each Outside Director (as calculated based on the target value as indicated below at the time such new Outside Director joins the Board) would otherwise include (i) a non-qualified option to purchase 4,000 shares of the Company’s common stock, and (ii) an RSU covering 2,000 shares of the Company’s common stock.  If the new Outside Director were hired in September with eight full months of service expected before the next Annual Meeting of Stockholders, the new Outside Director’s option would be pro-rated to
2,667 shares (calculated as 8/12 x 4,000), and the new Outside Director’s RSUs would be pro- rated to 1,334 shares (calculated as 8/12 x 2,000).  If the new Outside Director were hired in January with four full months of service expected before the next Annual Meeting of Stockholders, the new Outside Director’s option would be prorated to 1,334 shares (calculated as 4/12 x 4,000), and the new Outside Director’s RSUs would be pro-rated to 667 shares (calculated as 4/12 x 2,000).

B.    Annual Equity Grant

At the first meeting of the Board following the Annual Meeting of Stockholders, each Outside Director will be provided an equity grant with a target value of $175,000, with 50% of such value to be delivered in the form of a non-qualified stock option to purchase shares of the Company’s common stock, and 50% of such value to be delivered in the form of RSUs covering shares of the Company’s common stock, in each case pursuant to the Stock Plan.  The number of shares underlying the non-qualified stock option portion of the equity grant shall be based on the Black-Scholes valuation of such options, and the number of shares underlying the RSU portion
of the equity grant shall be based on the actual value of the shares on the date of grant, and in each case shall be subject to automatic adjustment in the event of any stock split or other recapitalization affecting the Company’s common stock.  The foregoing equity grants are intended to provide each Outside Director with an equity grant comparable in value to annual grants provided to non-employee directors of companies in AMAG’s then current peer group as established by the Compensation Committee of the Board (the “Compensation Committee”).

The foregoing options and RSUs will vest in twelve equal monthly installments beginning on the first day of the first full month following the Annual Meeting of Stockholders and continuing on the first day of each of the following eleven months thereafter, so long as the Outside Director continues to serve as a member of the Board; provided, that delivery of any vested shares of common stock underlying the foregoing RSUs shall be deferred until the earlier of (i) the first anniversary of the date of grant or (ii) the date the Outside Director’s service to the Company terminates; provided, that such termination constitutes a “separation from service” as such term is defined in Treasury Regulation Section 1.409A-1(h).

C.    Exercise Price and Term of Options

Each option granted to an Outside Director shall have an exercise price per share equal to the fair market value of the common stock of the Company on the date of grant of the option (as determined by the Board in accordance with the Stock Plan), have a term of ten years and shall

be subject to the terms and conditions of the Stock Plan.  Each such option grant shall be evidenced by the issuance of the Company’s form non-qualified stock option agreement for Outside Director grants.

D.    Early Termination of Options or RSUs Upon Termination of Service

If an Outside Director ceases to be a member of the Board for any reason, any then vested and unexercised options granted to such Outside Director may be exercised by the Outside Director (or, in the case of the Outside Director’s death or disability, by the Outside Director’s personal representative, or the Outside Director’s survivors) within three years after the date the director ceases to be a member of the Board and in no event later than the expiration date of the option.

If an Outside Director’s service to the Company is terminated (provided, that such termination constitutes a “separation from service” as such term is defined in Treasury Regulation Section 1.409A-1(h)), all then vested and undelivered shares underlying any RSUs held by such Outside Director shall be delivered to the Outside Director (or, in the case of the director’s death or disability, by the director’s personal representative, or the director’s survivors) as of the date he or she ceases to be a member of the Board.

3.    Retainer Fees

A.    Annual Board Retainer

Each Outside Director, other than the Chair, will receive an aggregate annual retainer fee of $45,000, payable in four equal quarterly installments until July 1, 2018 at which time such annual retainer fee will increase to $50,000. The Chair, provided that he or she is also an Outside Director, will receive an aggregate annual retainer fee of $95,000, payable in four equal quarterly installments.

B.    Annual Standing Committee Retainer

Each member of each of the Company’s standing committees, other than the Chair, will also be paid an additional aggregate annual retainer fee in four equal quarterly installments as follows:
	
			
	Audit Committee:
	 
	$12,500

	Compensation Committee:
	 
	$10,000

	Governance & Risk Committee:
	 
	$7,500

    
The Chair of each of the standing committees will be paid an additional aggregate annual retainer fee in four equal quarterly installments as follows:

	
			
	Audit Committee:
	 
	$25,000

	Compensation Committee:
	 
	$20,000

	Governance & Risk Committee:
	 
	$15,000

4.    Per Meeting Fees

In addition to the foregoing retainer fees, for any ad hoc committee (special committees not mentioned above, that may be formed from time to time by the full Board) each Outside Director may receive (i) a per meeting fee of $1,000 for each meeting attended by such Outside Director (other than the Chair of such Committee), and (ii) a per meeting fee of $2,000 for each ad hoc Committee of the Board attended by the Chair. 
The Board reserves the right to institute a per meeting fee for each Board or Committee meeting which is meaningfully in excess of the regularly scheduled meetings (“Special Meeting”), including a per meeting fee of $1,000 for each Special Meeting of the Board and a per meeting fee of $500 for each Special Meeting of the Audit, Compensation, and Nominating and Corporate Governance Committees attended by such Outside Director. It is expected that Special Meetings of the Board and the Committees will be called when necessary to address material matters faced by the Corporation outside of the ordinary course of business.  

The foregoing per meeting fees will be paid by the Company quarterly in arrears.

5.    Reasonable and Documented Expenses

Upon presentation of documentation of such expenses reasonably satisfactory to the Company, each Outside Director shall be reimbursed for his or her reasonable out-of-pocket business expenses incurred in connection with attending meetings of the Board, Committees thereof or in connection with other Board related business.

6.    Amendments

The Board shall review this Policy from time to time to assess whether any amendments in the type and amount of compensation provided herein should be adjusted in order to fulfill the objectives of this Policy.

7.    Interpretation of Policy

Any interpretation of or decisions regarding the application of this Policy shall be made by the Compensation Committee of the Board.

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