Document:

EXHIBIT (10)J

 

ECOLAB

EXECUTIVE FINANCIAL COUNSELING PLAN
(Effective January 1, 1989)

 

ARTICLE I - Name and Purpose

 

1.1           Plan
Name.  The name of the Plan is “Ecolab
Executive Financial Counseling Plan.”

 

1.2           Purpose.  The purpose of the Plan is to reimburse
Executive Employees of the Company for certain expenses incurred by such
Executives for financial counseling.

 

ARTICLE II - Definitions

 

For purposes of this Plan, each of the terms set forth in this article shall,
unless the context otherwise requires, have the meaning prescribed in this
article.

 

2.1           Plan.  The “Plan” is the Ecolab Executive Financial
Counseling Plan set forth in this instrument as it may be amended from time to
time.

 

2.2           Company.  The “Company” is Ecolab Inc., a Delaware
corporation, or its successor.

 

2.3           Executive.  An “Executive” is an Employee who has been
selected by the Chief Executive Officer of the Company to participate in the
Plan.  In the event coverage under the
Plan continues for a period following the Executive’s death, the term “Executive”
shall refer to the executor or other personal representative of the deceased
Executive’s estate.

 

2.4           Annual
Compensation.  An Executive’s “Annual
Compensation” for a Plan Year is the rate of the Executive’s annual base
compensation as of December 31 of the immediately preceding Plan Year, or,
in the case of an Executive who was not an Employee on such December 31,
the date he or she became an Employee.

 

2.5           Employee.  “Employee” is a common-law employee of the
Company or of any other corporation at least fifty percent of the outstanding
stock of which is owned, directly or indirectly, by the Company.

 

2.6           Financial
Counseling.  Financial Counseling
shall refer to services rendered for an Executive (or his or her estate) for
financial/investment planning, estate planning, tax planning, tax return
preparing and tax audit assistance by an Authorized Vendor.

 

2.7           Authorized
Vendor.  Any accounting/tax,
investing and legal vendor(s), selected at the discretion of the Executive to
perform Financial Counseling, with respect to whom the Executive has provided
written notice to the Administrator; provided, however, that any vendor who is
not licensed in the area of expertise in which he or she practices or who is a
relative of the Executive shall not be an Authorized Vendor unless the Company
authorizes the use of such vendor in writing.

 

2.8           Annual
Percentage.  The “Annual Percentage”
with respect to an Executive for a Plan Year shall be an amount equal to three
percent (3%) of the Executive’s applicable Annual Compensation for that Plan
Year.

 

2.9           Annual
Reimbursement Limit.  The “Annual
Reimbursement Limit” with respect to an Executive for any Plan Year shall be
the sum of his or her Annual Percentage for such Plan Year and for each

 

 

of the two immediately preceding Plan Years, less the total amount of
benefits previously paid under this Plan with respect to the Executive during
the two immediately preceding Plan years.

 

2.10         Permanent
and Total Disability.  For purposes
of this Plan, an Executive shall be considered to be “Permanently and Totally
Disabled” only if, by reason of bodily injury or disease, he or she is entitled
to receive long-term disability benefits under the Company’s long-term
disability plan.

 

2.11         Plan
Year.  The “Plan Year” is the
calendar year.

 

ARTICLE III - Administration

 

3.1           Administrator.  The Company shall be the Administrator of the
Plan.  The Vice President - Corporate
Human Resources of the Company (or the functional equivalent of such officer in
the event the title or responsibility of that office change) shall perform the
duties of the Administrator on behalf of the Company.  Such Vice President may, by written
instrument, delegate any or all of the duties of the Administrator to any
person who shall serve at the pleasure of such Vice President.

 

3.2           Duties.  The Administrator shall take such actions and
adopt such rules and procedures as shall be necessary or advisable to carry out
the provisions of the Plan.

 

3.3           Indemnification.  The Company shall indemnify the Vice
President - Corporate Human Resources and each person performing duties as
Administrator against all liabilities such person may incur in the
administration of the Plan.  The
Administrator shall be entitled to reimbursement from the Company for expenses
incurred in the performance of the duties of Administrator.

 

3.4           Claims.  The Administrator shall give each Executive,
within a reasonable time following the Executive’s submission of a request for
payment of benefits, written notice of the amount of benefits to which the
Executive is entitled.  The Executive
may, within thirty days after receiving such notice, file with the
Administrator a written objection to the Administrator’s determination of such
amount.  The Administrator shall review
the claim and shall respond in writing to the Executive within sixty days after
receiving the objection.  If the
Administrator, upon review, denies any part or all of the benefits claimed by
the Executive, the Executive may, within sixty days of receiving the Administrator’s
response, appeal the Administrator’s decision by written notice to the Chief
Executive Officer of the Company.  Within
ninety days after receiving the Executive’s notice of appeal, the Chief
Executive Officer shall render a decision with respect to the claim, which
decision shall be final and binding upon the Company and the Executive.

 

ARTICLE IV - Benefits

 

4.1           Coverage.

 

(A)          Each
Executive shall be covered under the Plan as of the first date on or after the
Effective Date on which he or she is an Executive.

 

(B)           An
Executive shall cease to be covered under the Plan as of the earliest of:

 

(1)           The
date his or her employment as an Executive ceases for any reason other than
death or Permanent and Total Disability;

 

2

 

(2)           If
the coverage under the Plan continued during a period of the Executive’s
Permanent and Total Disability, the end of the twelfth month following the
month in which the Permanent and Total Disability occurred or such earlier date
as the Permanent and Total Disability ceases; and

 

(3)           If
coverage under the Plan continued as a result of the Executive’s death, the end
of the twelfth month following the month in which the death occurred.

 

4.2           Benefits.

 

(A)          Subject
to subparagraph (B), an Executive shall be entitled to reimbursement of
expenses incurred for Financial Counseling by an Authorized Vendor while the
coverage under the Plan was in effect, such reimbursement not to exceed the
Annual Reimbursement Limit in any Plan Year.

 

(B)           Notwithstanding
anything to the contrary in subparagraph (A), total reimbursements with respect
to eligible expenses incurred during a period of coverage continuation
following death or Permanent and Total Disability of the Executive pursuant to Section 4.1
(A)(2) or (3) may be equal to, but shall not exceed, the Executive’s Annual
Percentage for the Plan Year in which such death or Permanent and Total
Disability occurred, irrespective of any benefits already paid for such Plan
Year prior to such period of coverage continuation.

 

4.3           Request
for Reimbursement.  Within a
reasonable time following the occurrence of expenses eligible for reimbursement
under this Plan, the Executive shall file with the Administrator a request for
reimbursement which includes the itemized statement from the Authorized Vendor
to the Executive and the Executive’s written confirmation of the accuracy of
the statement, and such other information as the Administrator shall from time
to time deem necessary or desirable in administering the Plan.

 

4.4           Payment
of Benefit.  Benefit payments with
respect to eligible expenses shall be made, at the discretion of the
Administrator, directly to the Authorized Vendor or to the Executive (or the
Executive’s estate in the event of his or her death) within a reasonable time
following submission of a properly filed request for reimbursement.

 

4.5           Facility
of Payment.  If the Administrator
determines that a person entitled to benefits under the Plan is under legal
disability or is otherwise unable to receipt for any benefit payment, the
Administrator may, in his sole discretion, pay such benefit to a spouse, parent
or adult child of such person, or to any individual whom the Administrator
determines to have assumed responsibility for such person’s financial
affairs.  The receipt of the distributee
selected by the Administrator shall be a complete release of all claims of the
person on whose behalf such payment is made and the payment to such distributee
shall fully discharge the Company’s obligation under the Plan to the extent of
such payment.

 

4.6           Non-alienation.  No Executive may in any way pledge, assign,
encumber or otherwise alienate his interest in any benefit payable under the
Plan.  The Company shall give no effect
to any instrument purporting to alienate any person’s interest in Plan
benefits.

 

3

 

ARTICLE V - Funding

 

5.1           Company
Obligations.  Benefits under the Plan
shall be paid directly by the Company from its general assets.  No specific property of the Company shall in
any manner be dedicated to or segregated for payment of such benefits.

 

5.2           Executive’s
Rights.  No Executive shall have any
right to any specific assets of the Company under the Plan, but shall, to the
extent the Company does not pay benefits when they are due, be a general
creditor of the Company.

 

ARTICLE VI - Amendment and Termination

 

6.1           Amendment.  The Plan may be amended from time to time by
an instrument signed by either the General Counsel or the Vice President -
Corporate Human Resources of the Company (or the functional equivalent of such
offices in the event the title or responsibilities of the office change).

 

6.2           Termination.  The Plan may be terminated at any time by an
instrument signed by either the General Counsel or the Vice President -
Corporate Human Resources of the Company (or the functional equivalent of such
offices in the event the title or responsibilities of the office change).

 

6.3           Restriction.  No amendment or termination shall operate to
deprive any Executive of any benefit otherwise payable during the Plan Year in
which the amendment or termination occurs with respect expenses incurred by the
Executive prior to the date on which the resolution amending or terminating the
Plan is adopted.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be
executed by its duly authorized officer and its corporate seal to be affixed
this 15th day of April, 1992.

 

	
   

  	
  ECOLAB INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
  /s/ Sheila B. Holt 

  	
   

  	
  /s/ William R. Rosengren

  
	
   

  	
  By: 

  	
  William R. Rosengren

  
	
   

  	
   

  	
  Senior Vice President - Law,

  
	
   

  	
   

  	
  General Counsel and Secretary

  
	
   

  
	
   

  
	
  (Corporate Seal)

  
					

 

4EXHIBIT (10)K(ii)

 

AMENDMENT
NO. 1 AND INSTRUMENT OF
BENEFIT FREEZE

TO THE ECOLAB SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As Amended and Restated effective January 1, 2003)

WITH RESPECT TO

THE AMERICAN JOBS CREATION ACT OF 2004

 

WHEREAS, Ecolab Inc. (the “Company”) amended and
restated the Ecolab Supplemental Executive Retirement Plan (the “Plan”)
effective January 1, 2003; and

 

WHEREAS, the Plan is classified as a “nonqualified
deferred compensation plan” under the Code; and

 

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

 

WHEREAS, pursuant to the AJCA, the Secretary of the
Treasury and the Internal Revenue Service will issue proposed, temporary or
final regulations and/or other guidance with respect to the provisions of new
Section 409A of the Code (collectively, the “AJCA Guidance”); and

 

WHEREAS, the AJCA Guidance has not yet been issued;
and

 

WHEREAS, to the fullest extent permitted by Section
409A of the Code and the AJCA Guidance, the Company wants to protect the “grandfathered”
status of the SERP Benefits that are accrued prior to January 1, 2005; and

 

WHEREAS, due to the uncertainty regarding the effect
of the AJCA on SERP Benefits under the Plan, the Company has decided to
temporarily freeze all SERP Benefits as of December 31, 2004;

 

NOW, THEREFORE, pursuant to Section 1.3 of the Plan
and Section 5.1 of the Administrative Document, the Company hereby adopts this
Amendment No. 1 to the Plan, which amendment is intended to (1) allow amounts
deferred prior to January 1, 2005 to qualify for “grandfathered” status and
continue to be governed by the law applicable to nonqualified deferred
compensation prior to the addition of Section 409A of the Code (as specified in
the Plan as in effect prior January 1, 2005); and (2) temporarily freeze the
accrual of SERP Benefits hereunder as of December 31, 2004.

 

Words and phrases used herein with initial capital
letters that are defined in the Plan are used herein as so defined and the
provisions hereof shall be effective as of the close of business on December
31, 2004.

 

 

Section 1

 

Article I of the Plan is hereby amended by the
addition of the following new Section 1.4 at the end thereof, to read as
follows:

 

“Section 1.4           American
Jobs Creation Act (AJCA).

 

(a)           To
the extent applicable, it is intended that the Plan (including all Amendments
thereto) comply with the provisions of Section 409A of the Code, as enacted by
the AJCA, so as to prevent the inclusion in gross income of any amount of SERP
Benefit accrued hereunder in a taxable year that is prior to the taxable year
or years in which such amounts would otherwise be actually distributed or made
available to the Executives.  The Plan
shall be administered in a manner that will comply with Section 409A of the
Code, including proposed, temporary or final regulations or any other guidance
issued by the Secretary of the Treasury and the Internal Revenue Service with
respect thereto (collectively with the AJCA, the “AJCA Guidance”).  Any Plan provisions that would cause the Plan
to fail to satisfy Section 409A of the Code (including, without limitation,
those added or amended by this Amendment No. 1) shall have no force and effect
until amended to comply with Code Section 409A (which amendment may be
retroactive to the extent permitted by the AJCA Guidance).

 

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

 

(c)           The
effective date of Amendment No. 1 to this Plan is December 31, 2004.  This Amendment No. 1 temporarily freezes the
SERP Benefits under the Plan effective as of December 31, 2004, with the intent
being that the Company will rescind the freeze upon issuance of the AJCA
Guidance.  In furtherance thereof, but
without limiting the foregoing, any SERP Benefit that is deemed to have been
deferred prior to January 1, 2005 and that qualifies for “grandfathered status”
under Section 409A of the Code shall continue to be governed by the law
applicable to nonqualified deferred compensation prior to the addition of
Section 409A to the Code and shall be subject to the terms and conditions
specified in the Plan as in effect prior to January 1, 2005.”

 

Section 2

 

Article III of the Plan is hereby amended by the
addition of the following new Section 3.2(3) thereto, immediately following
Section 3.2(2), to read as follows:

 

“(3)         Benefit
Freeze.  Notwithstanding any
provision of the Plan to the contrary, all SERP Benefits under the Plan shall
be frozen as of December 31, 2004.  In
furtherance thereof, but without limiting the foregoing, a Participant shall
not receive credit under this Plan for any service or compensation that is earned
after December 31, 2004 (even if such service and compensation is taken into
account for purposes of

 

2

 

calculating
the Pension Benefit).  The Company
intends that SERP Benefits that are accrued (and, only if required under the
AJCA Guidance, vested) on or before December 31, 2004 will qualify for “grandfathered”
status under the AJCA and will continue to be governed by the law applicable to
nonqualified deferred compensation prior to the addition of Section 409A of the
Code.”

 

Section 3

 

Section 6.1 of the Plan is hereby amended by adding
the following clause to the end thereof, to read as follows:

 

“; provided, however, that this limitation shall not
apply the extent deemed necessary by the Company to comply with the
requirements of Code Section 409A.”

 

Section 4

 

Section 6.4(2)(b)(iii) of the
Plan is hereby amended by adding the following clause to the end thereof, to
read as follows:

 

“; to the extent permitted by Section 409A.”

 

IN WITNESS WHEREOF, Ecolab Inc. has executed this
Amendment No. 1 and has caused its corporate seal to be affixed this 16th
day of December, 2004.

 

	
   

  	
  ECOLAB INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven L. Fritze

  
	
   

  	
  Steven L. Fritze

  
	
   

  	
  Executive Vice
  President and

  
	
   

  	
  Chief Financial Officer

  
	
   

  
	
  (Seal)

  
	
   

  
	
  Attest:

  
	
   

  
	
   

  
	
  /s/ Lawrence T. Bell

  	
   

  
	
  Lawrence T. Bell

  
	
  Senior Vice President,

  
	
  General Counsel and Secretary

  
				

 

3

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