Document:

EX-10.4

 Exhibit 10.4 

LTIP (Domestic and International) 

Award Date: January 28, 2016 
  

 
 THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING 

SECURITIES THAT HAVE BEEN REGISTERED UNDER THE 

SECURITIES ACT OF 1933 
  

	Re:	Lockheed Martin Corporation 2011 Incentive Performance Award Plan: 
Long-Term Incentive Performance Award (2016-2018 Performance Period) 

Dear Awardee: 
 On behalf of the Management
Development and Compensation Committee (the “Committee”) of the Board of Directors of Lockheed Martin Corporation, I am pleased to tell you that you have been granted a Long-Term Incentive Performance (“LTIP”) Award under the
Corporation’s 2011 Incentive Performance Award Plan, as amended (the “Plan”). The purpose of this letter is to serve as the LTIP Award Agreement and to set forth your Target Award as well as the terms and conditions to the payment of
your Award. Additional terms and conditions are set forth in the Plan and in the Prospectus relating to the Plan of which the Plan document and this Award Agreement are a part. Your Target Award and the Prospectus are available at
http://www.stockplanconnect.com. You should retain the Prospectus and the attached copy of the Plan in your records. 
 Your
Award is not effective or enforceable until you properly acknowledge your acceptance of the Award by completing the electronic receipt or returning an executed copy of this Award Agreement to the Vice President of Compensation and Performance
Management as instructed below as soon as possible but in no event later than May 31, 2016. If you do not properly acknowledge your acceptance of this Award Agreement on or before May 31, 2016, this Award will be forfeited. 

Assuming prompt and proper acknowledgement of your acceptance of this Award Agreement as described above, this Award will be effective as of
the Award Date. Acceptance of this Award Agreement constitutes your consent to any action taken under the Plan consistent with its terms with respect to this Award and your agreement to be bound by the restrictions contained in Section 18 and
Exhibit A (“Post-Employment Conduct Agreement”) and Exhibit B (“Stock Ownership Requirements”), as amended from time to time, except where prohibited by law. 

The Corporation will comply with all applicable U.S. Tax withholding requirements applicable to the Award. Please see the prospectus for
the Plan for a discussion of certain material U.S. Tax consequences of the Award. If you are a taxpayer in a country other than the U.S., you agree to make appropriate arrangements with the Corporation or its subsidiaries for the
satisfaction of all income and employment tax withholding requirements, as well as social insurance contributions applicable to the Award. Please see the tax summary for your country at http://www.stockplanconnect.com. If you are a
taxpayer in a country other than the U.S., you represent that you will consult with your own tax advisors in connection with this Award and that you are not relying on the Corporation for any tax advice.

 Award Date: January 28, 2016 

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 In general, the Corporation will reduce the amount paid to you under this Award Agreement by
an amount sufficient to satisfy any applicable Tax withholding obligation, based upon the minimum rate of withholding prescribed by law. The Corporation shall also have the right to (i) offset any other obligation of the Corporation to you
(including but not limited to withholding from your salary) by an amount sufficient to satisfy the Tax withholding obligation, or (ii) require you (or your Beneficiary) to pay the Corporation an amount equal to the Tax withholding obligation.

 Capitalized terms used in this Award Agreement either shall be defined in this Award Agreement or if not defined in this Award Agreement
shall have the meaning given to the term in the Plan. The term “Target Award” as used in this Award Agreement refers only to the Target Award awarded to you under this Award Agreement and the term “Award” refers only to the LTIP
Award set forth in this Award Agreement. References to the “Corporation” include Lockheed Martin Corporation and its Subsidiaries. Appendix A contains an index of all capitalized terms used in this Award Agreement. 

 

	Section 1.	Target Award; Performance Period. 

 1.1 Target Award. Your Target Award for
the Performance Period under this Award Agreement shall be the U.S. dollar amount identified as your Target Award in your account at http://www.stockplanconnect.com. 

1.2 Performance Period. The Performance Period under this Award Agreement is a three-year performance period that runs from
January 1, 2016, until December 31, 2018. 
 1.3 Payment of Award. The amount payable to you under your Award is dependent
upon the Corporation’s performance as compared to the metrics described in Section 3 and Section 4 of this Award Agreement and your continued employment with the Corporation in accordance with Section 5 of this Award Agreement.
As a result of these requirements, any payments you receive may be larger or smaller than your Target Award (e.g., the performance factors could result in no payment in respect of your Award). With respect to US-based Employees, when an Award
becomes vested in accordance with Section 5.2(a), the Award amount will be paid to the Participant in US Dollars. With respect to non-US based employees, when an Award becomes vested in accordance with Section 5.2(a), the amount payable to
the Participant in cash will be the amount of the Participant’s Award converted into the Participant’s functional currency at the conversion rate determined by the Corporation in its discretion as of the date the Award becomes vested in
accordance with Section 5.2(a). 
  

	Section 2.	Calculation of Award Payments. 

 2.1 End of Performance Period Calculation.
Following the end of the Performance Period and prior to any payments being made, 
 (a) The Committee will calculate the Total Stockholder
Return Performance Factor based on the Corporation’s performance during the Performance Period relative to the performance of other corporations which compose the “Peer Performance Group” as defined in Section 3.1 below. 

 Award Date: January 28, 2016 

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 (b) The Committee will calculate the ROIC Performance Factor based on the Corporation’s
ROIC during the Performance Period as compared to the projected ROIC for the Performance Period as set forth in the January 27, 2016, Committee resolution (“ROIC Target”). 

(c) The Committee will calculate the Cash Flow Performance Factor based on the Corporation’s cumulative Cash Flow during the Performance
Period as compared to the projected cumulative Cash Flow for the Performance Period as set forth in the January 27, 2016, Committee resolution (“Cash Flow Target”). 

(d) Your “Potential Award” shall be calculated by multiplying the weighted average of the Total Stockholder Return Performance
Factor, the ROIC Performance Factor, and the Cash Flow Performance Factor by your Target Award. The Total Stockholder Return Performance Factor, the ROIC Performance Factor, and the Cash Flow Performance Factor shall be weighted as follows in
determining the weighted average of the three performance factors: 
  

					
	 Total Stockholder Return Performance Factor
	  	 	50	% 
	 ROIC Performance Factor
	  	 	25	% 
	 Cash Flow Performance Factor
	  	 	25	% 

 You must (except as specified in Section 5) remain employed by the Corporation through December 31, 2018, to receive
your Potential Award. 
 2.2 Adjustment of ROIC Target and Cash Flow Target. The Committee will adjust the ROIC Target and Cash Flow
Target established as described in Section 2.1(b) and Section 2.1(c), respectively, to account for the impact of an acquisition or divestiture with a transaction value in excess of $1 billion at the time the transaction takes effect. 

 

	Section 3.	Total Stockholder Return Performance Factor.  

 3.1. Peer Performance
Group. The Total Stockholder Return Performance Factor will be based upon the relative ranking of the Corporation’s Average TSR (as defined in Section 3.2(a)) for the Performance Period to the Average TSR for such Period for each
corporation in the “Peer Performance Group.” The “Peer Performance Group” shall consist of the corporations which compose the Standard and Poor’s Aerospace and Defense Index reported under symbol S5AERO by Bloomberg L.P. The
Corporation’s Total Stockholder Return will be based on the performance of the Stock. With respect to the corporations that make up the Standard and Poor’s Aerospace and Defense Index, the Total Stockholder Return of each corporation that
is taken into account in computing the Peer Performance Group Total Stockholder Return will be based on the equity security of the relevant corporation that is used in computing the Standard and Poor’s Aerospace and Defense Index. 

3.2. Calculation of Total Stockholder Return Performance Factor. 

(a) Calculation of Average TSR. During the Performance Period, the Committee shall compute the Total Stockholder Return (as defined in
the Plan and assuming the reinvestment of any cash dividends) for the Corporation and for each other corporation in the Peer Performance Group for thirty-six (36) periods during the Performance Period where each period begins on January 1,
2016 (based on the closing price for the stock on December 31, 2015), and ends on the last day of each successive calendar month in 

 Award Date: January 28, 2016 

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the Performance Period on which the New York Stock Exchange is open for trading. Each such Total Stockholder Return shall be computed from data available to the public. At the end of the
Performance Period, the thirty-six (36) Total Stockholder Return figures for each corporation for the Performance Period will be averaged to determine each corporation’s average Total Stockholder Return (“Average TSR”) for the
Performance Period. Each corporation’s Average TSR shall be ranked among the Average TSR for each other corporation in the Peer Performance Group on a percentile basis (using the Excel PERCENTRANK function). 

(b) Percentage Level of Target Award. Your Total Stockholder Return Performance Factor, expressed as a percentage, will be determined
under this Section 3.2(b) (and Section 3.2(c) to the extent interpolation is necessary) based on the Percentile Ranking (as determined under Section 3.2(a)) of the Corporation’s Average TSR for the Performance Period under the
following chart: 
  

					
	 Band
	  	 Percentile Ranking
	  	 Total Stockholder
Return Performance
Factor

	 One
	  	75th – 100th	  	200% (Maximum)
	 Two
	  	60th	  	150%
	 Three
	  	50th	  	100%
	 Four
	  	40th	  	50%
	 Five
	  	35th	  	25% (Threshold)

 (c) Total Stockholder Return Performance Factor Interpolation. If the Percentile Ranking as determined under
Section 3.2(a) puts the Corporation over the listed Percentile Ranking for the applicable Band (other than Band One) in Section 3.2(b), your Total Stockholder Return Performance Factor under Section 3.2(b) shall be interpolated on a
linear basis. 
 If the Corporation’s Average TSR for the three-year Performance Period is negative, the maximum Total Stockholder
Return Performance Factor shall not exceed 100%. 
  

	Section 4.	ROIC Performance Factor and Cash Flow Performance Factor. 

 4.1 ROIC
Performance Factor. The ROIC Performance Factor will be determined by comparing the Corporation’s ROIC for the Performance Period to the ROIC Target and then identifying the ROIC Performance Factor based upon the factor associated with the
difference on the following table: 
  

			
	 ROIC Band
	  	 ROIC Performance
Factor

	 Target +3 160 basis points
	  	200% (Maximum)
	 Target + 120 basis points
	  	175%
	 Target + 80 basis points
	  	150%
	 Target + 40 basis points
	  	125%
	 Target
	  	100%
	 Target – 10 basis points
	  	75%
	 Target – 20 basis points
	  	50%
	 Target – 30 basis points
	  	25% (Threshold)

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 (a) ROIC Definition. For purposes of this Award Agreement, “ROIC” means
return on invested capital for the Performance Period calculated as (A) average annual (i) net income (excluding any charge or addition to net income resulting solely from adjustment of deferred tax assets and liabilities for the effect of
enactment of corporate tax reform and related legislation that adjusts United States federal corporate income tax rates) plus (ii) interest expense times one minus the average of the highest marginal federal corporate income tax rates over the
three year Performance Period (“Return”), divided by (B) the average thirteen quarter-end investment balances (beginning with the quarter-end immediately preceding the beginning of the Performance Period) consisting of (i) debt
(including current maturities of long-term debt) plus (ii) stockholders’ equity plus the postretirement plans amounts determined quarterly as included in the Corporation’s Statement of Stockholders’ Equity. 

(b) ROIC Determination. Each component of ROIC and the calculation of any postretirement plans amounts recorded in the
Corporation’s Statement of Stockholders’ Equity shall be determined by the Committee in accordance with generally accepted accounting principles in the United States and be based upon the comparable numbers reported on the
Corporation’s audited consolidated financial statements or, if audited financial statements are not available for the date or period on which ROIC is being determined, the Committee shall make its determination in a manner consistent with the
historical practices used by the Corporation in determining the components of ROIC and postretirement plans amounts recorded in the Corporation’s Statement of Stockholders’ Equity for purposes of reporting those items on its audited
financial statements, as modified by this paragraph. Notwithstanding the foregoing, ROIC will be adjusted to exclude the impact of any change in accounting standards or adoption of any new accounting standards that is required under generally
accepted accounting principles in the United States and that is reported in the Corporation’s filings with the Securities and Exchange Commission as having a material effect on the Corporation’s consolidated financial statements. ROIC, as
included in the 2016 Long Range Plan, and the change in ROIC for purposes of the ROIC Performance Factor will be determined in accordance with this Section 4.1(b). 

4.2 Cash Flow Performance Factor. The Cash Flow Performance Factor will be determined by comparing the Corporation’s cumulative
Cash Flow during the Performance Period to the Cash Flow Target, and then identifying the Cash Flow Performance Factor based upon the factor associated with the change from the Cash Flow Target on the following table: 

 

			
	 Cash Flow Band
	  	 Cash Flow
Performance Factor

	 Target + 3$2.0B or more
	  	200% (Maximum)
	 Target + $1.5B
	  	175%
	 Target + $1.0B
	  	150%
	 Target + $0.5B
	  	125%
	 Target
	  	100%
	 Target – $0.2B
	  	75%
	 Target – $0.5B
	  	50%
	 Target – $0.7B
	  	25% (Threshold)

 (a) Cash Flow Definition. For purposes of this Award Agreement, Cash Flow means net cash flow from
operations but not taking into account: (i) the aggregate difference between the amount forecasted in the Corporation’s 2016 Long Range Plan to be 

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contributed by the Corporation to the Corporation’s defined benefit pension plans during the Performance Period and the actual amounts contributed by the Corporation during the Performance
Period; or (ii) any tax payments or tax benefits during the Performance Period associated with the divestiture of business units, other than tax payments or tax benefits that were included in the Corporation’s 2016 Long Range Plan. 

(b) Cash Flow Determination. Cash Flow shall be determined by the Committee based upon the comparable numbers reported on the
Corporation’s audited consolidated financial statements or, if audited financial statements are not available for the period for which Cash Flow is being determined, the Committee shall determine Cash Flow in a manner consistent with the
historical practices used by the Corporation in determining net cash provided by operating activities as reported in its audited consolidated statement of cash flows, in either case as modified by this paragraph. 

4.3 Interpolation of ROIC and Cash Flow Metrics. If the change in ROIC or Cash Flow falls between two numbers listed in the applicable
table in Section 4.1 or 4.2, the appropriate factor will be interpolated on a linear basis. Notwithstanding the foregoing, the ROIC Performance Factor will always be zero if the ROIC for the Performance Period falls short of the ROIC Target by
more than 30 basis points and the Cash Flow Performance Factor will always be zero if the aggregate Cash Flow for the Performance Period falls short of the Cash Flow Target by more than $0.7 billion. 

 

	Section 5.	Payment of Award. 

 5.1. Employment Requirement. 

(a) General Rule. In order to be eligible to receive payment of your Award as determined under Section 2.1, you must accept this
Award Agreement and remain employed by the Corporation through the last day of the Performance Period. Except as provided below or where prohibited by law, if your employment as an Employee terminates during the Performance Period, you shall forfeit
your right to receive all or any part of your Award. If you are on Corporation-approved leave of absence at any point during the Performance Period, for purposes of this Award Agreement, you will be considered to still be in the employ of the
Corporation, unless otherwise provided in an agreement between you and the Corporation. 
 (b) Exceptions. Notwithstanding
Section 5.1(a), if the Committee determines 
 (1) that your employment as an Employee terminated as a result of your death,
Divestiture, or Total Disability or your Retirement (each as defined in Section 5.1(c)) or 
 (2) that the Corporation terminated your
employment involuntarily after July 28, 2016 (except that, if you are an employee who has been identified by the Corporation as subject to Divestiture, “after July 28, 2016” does not apply to you), as a result of a layoff,
including through a voluntary layoff program that constitutes a window program under Section 409A of the Code, 
 you shall be eligible
to receive a fraction of your Award. The numerator of such fraction shall equal the number of days in the Performance Period before your employment as an Employee terminated, and the denominator shall equal the total number of days in

 Award Date: January 28, 2016 

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the Performance Period. The Committee shall have complete and absolute discretion to make the determinations called for under this Section 5.1(b), and all such determinations shall be
binding on you and on any person who claims all or any part of your Award on your behalf as well as on the Corporation. If you terminate employment during the Performance Period but are eligible to receive a portion of your Potential Award as a
result of an exception under this Section 5.1(b), payment of such portion of your Potential Award shall be in full satisfaction of all rights you have under this Award Agreement. 

(c) Special Definitions. For purposes of this Award Agreement: 

(1) Your employment as an Employee shall be treated as terminating because of a “Total Disability” on the date you commence receiving
a benefit under the Corporation’s long-term disability plan in which you participate, or if you are not enrolled in the Corporation’s long-term disability plan, the date on which long-term disability benefits would commence under the plan
under which you would have been covered, had you enrolled, using the standards set forth in that plan; 
 (2) Your employment as an Employee
shall be treated as terminating as a result of Divestiture if the Corporation divests all or substantially all of a business operation of the Corporation and such divestiture results in the termination of your employment with the Corporation and a
transfer of such employment to the other party in the Divestiture. A “Divestiture” shall mean a transaction that results in the transfer of control of the business operation divested to any person, corporation, association, partnership,
joint venture, limited liability company or other business entity of which less than 50% of the voting stock or other equity interests are directly or indirectly owned or controlled by the Corporation, by one or more of the Corporation’s
Subsidiaries or by a combination thereof; and 
 (3) Your employment as an Employee shall be treated as terminating because of
“Retirement” if the effective date of your termination of employment is after July 28, 2016, and (i) after you reach age 65, or (ii) after you reach age 55 and have (at the time of your termination) completed at least ten
years of service with the Corporation. The effective date of your termination is the first day of the month following the date you terminate services with the Corporation. 

(d) Resignation or Termination before the Last Day of the Performance Period. 

(1) Except where prohibited by law, if you resign or your employment otherwise terminates before the last day of the Performance Period, other
than on account of death, Total Disability, layoff, Retirement or Divestiture (as described above) or Change in Control (as described below), you will forfeit your right to receive all or any part of your Award on the date of your termination. 

(2) Except where prohibited by law, if your employment terminates before the last day of the Performance Period by action of the Corporation
due to your misconduct, then you will forfeit your right to receive all or any part of your Award on the date of your termination. If your employment terminates due to your misconduct after July 28, 2016, but before the last day of the
Performance Period, then you will not be eligible to receive a fraction of your Award pursuant 

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to Section 5.1(b) of the Award Agreement, even if at the time of your termination due to misconduct you have attained (i) age 55 and ten years of service, or (ii) age 65. The
business area or Enterprise Operations review committee responsible for determinations of misconduct, or the Committee if you are an Elected Officer, will determine if your employment terminates due to misconduct. 

5.2. Payment Rules. 
 (a)
General Rule: Vesting; Method of Payment; Timing of Payment. If you are eligible to receive all, or a portion of, your Potential Award under Section 5.1, up to $10,000,000 of your Potential Award shall be fully vested on the date
on which the Committee certifies in writing (for purposes of Section 162(m) of the Code) that your Target Award has become a Potential Award for the Performance Period. This portion of your award shall be known as the “Payable
Portion” of your Potential Award. The Payable Portion of your Potential Award shall be (i) paid to you in cash as soon as administratively practicable after the certification date described above, but not later than March 15, 2019, or
(ii) deferred in accordance with Section 5.2(c). Subject to your deferral election under Section 5.2(c), in the event of your death, the Payable Portion of your Potential Award will be made to your estate if you do not have a properly
completed Beneficiary designation form on file with the Vice President of Compensation and Performance Management. 
 (b) Special Rules
for Certain Employees Terminated During Performance Period. If you terminate employment during the Performance Period but are eligible to receive a portion of your Potential Award as a result of an exception under Section 5.1(b), payment of
such portion of your Potential Award shall be in full satisfaction of all rights you have under this Award Agreement. The portion of your Potential Award payable to you following a termination of employment during the Performance Period under
circumstances described in Section 5.1(b) shall be paid to you or, in the event of your death, to your Beneficiary for the Award, at the time specified in Section 5.2(a) (subject to section 5.2(c)). In the event of your death and you do
not have a properly completed Beneficiary designation form on file with the Vice President of Total Rewards and Performance Management’s office, your payment will be made to your estate. 

(c) Deferral. You will be given an opportunity to elect to defer any amounts payable under Section 5.2 of this Award Agreement.
Such election shall be irrevocable, shall be made in accordance with the terms of the Lockheed Martin Corporation Deferred Management Incentive Compensation Plan (“DMICP”) and the requirements of Code section 409A, and shall be subject to
such additional terms and conditions as are set by the Committee. A deferral election form and the terms and conditions for any deferral will be furnished to you in due course. The beneficiary designation for the DMICP (rather than the Beneficiary
designation for this LTIP Award) shall govern any amounts deferred under the terms of the DMICP. This Section 5.2(c) shall not apply if you are a taxpayer in a country other than the United States. 

(d) Payment Rules Applicable to Canadian Employees. If you are employed in Canada, for purposes of the Award Agreement, the date of
termination of employment will be the last day of actual and active employment. For the avoidance of doubt, except as may be required by applicable minimum standards legislation, no period of notice or payment in lieu of notice that is given or that
ought to have been given under any applicable law or contract in respect of such termination of employment that follows or is 

 Award Date: January 28, 2016 

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in respect of a period after your last day of actual and active employment, if any, will be considered as extending your period of employment for the purposes of determining your entitlement
under this Agreement. 
 5.3. Cutback. Any portion of your Potential Award in excess of the Payable Portion of your Potential Award
will be forfeited to the extent that such portion, together with payments attributable to any other Cash-Based Awards that are granted during 2016 as Performance Based Awards, exceeds $10,000,000. Amounts in excess of any Plan limits also shall be
forfeited. 
 5.4. Means of Satisfying Code Section 409A. If any payment that would otherwise be made under this Award Agreement
is required to be delayed by reason of Section 13, such payment shall be made at the earliest date permitted by Code section 409A. The amount of any delayed payment shall be the amount that would have been paid prior to the delay, adjusted to
include interest from the original payment date to the actual payment date, at a rate equivalent to the six month London Interbank Offered Rate (LIBOR) as published in the Money Rates section of the Wall Street Journal, plus 25 basis points. The
increase over LIBOR may be adjusted to reflect the six month unsecured borrowing rate of the Corporation. 
  

	Section 6.	No Assignment – General Creditor Status.  

 You shall have no right to
assign any interest you might have in all or any part of the Target Award or Potential Award which has been granted to you under this Award Agreement and any attempt to do so shall be null and void and shall have no force or effect whatsoever.
Furthermore, all payments called for under this Award Agreement shall be made in cash from the Corporation’s general assets, and your right to payment from the Corporation’s general assets shall be the same as the right of a general and
unsecured creditor of the Corporation. 
  

	Section 7.	Plan.  

 This Award Agreement shall be subject to all of the terms and
conditions set forth in the Plan. 
  

	Section 8.	Change in Control. 

 8.1. Vesting of Award Upon Change in Control. In the
event of a consummation of a Change in Control during the Performance Period, your Target Award will become vested (i) on the effective date of the Change in Control if the LTIP Award is not assumed or continued, or equivalent cash incentives
are not substituted for your LTIP Award by the Corporation or its successor, or (ii) if the LTIP is assumed, continued or substituted, upon your involuntary termination other than for Cause (not including death or Total Disability) or your
voluntary termination with Good Reason, in either case, within the 24-month period following the consummation of the Change in Control. The cash payment in which you have become vested shall be delivered to you within fourteen (14) days of the
date on which you become vested. 
 8.2 Special Definitions.  

(a) Cause shall mean either of the following: 

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 1) Conviction for an act of fraud, embezzlement, theft or other act constituting a felony
(other than traffic-related offenses or as a result of vicarious liability); 
 2) Willful misconduct that is materially injurious to the
Corporation’s financial position, operating results or reputation; provided, however that no act or failure to act shall be considered “willful” unless done, or omitted to be done, by you (a) in bad faith; (b) for the
purpose of receiving an actual improper personal benefit in the form of money, property or services; or (c) in circumstances where you had reasonable cause to believe that the act, failure to act, or omission was unlawful. 

(b) Good Reason shall mean, without your express written consent, the occurrence of any one or more of the following after the Change
in Control: 
 1) A material and substantial reduction in the nature or status of your authority or responsibilities; 

2) A material reduction in your annualized rate of base salary; 

3) A material reduction in the aggregate value of your level of participation in any short or long term incentive cash compensation plan,
employee benefit or retirement plan or compensation practices, arrangements, or policies; 
 4) A material reduction in the aggregate level
of participation in equity-based incentive compensation plans; or 
 5) Your principal place of employment is relocated to a location that is
greater than fifty (50) miles from your principal place of employment on the date the Change in Control is consummated. 
 Your
continued employment following an event that would constitute a basis for voluntary termination with Good Reason shall not constitute Good Reason if you consent to, or waive your rights with respect to, any circumstances constituting Good Reason. In
addition, the occurrence of an event described in 1) through 5) shall constitute the basis for voluntary termination for Good Reason only if you provide written notice of your intent to terminate employment within 90 days of the first occurrence of
such event and the Corporation has had at least 30 days from the date on which such notice is provided to cure such occurrence. If you do not terminate employment for Good Reason within 180 days after the first occurrence of the applicable grounds,
then you will be deemed to have waived your right to terminate for Good Reason with respect to such grounds. 
 8.3. Special Rule.
Notwithstanding Section 8.1, if a payment in accordance with those provisions would result in a nonexempt short-swing transaction under Section 16(b) of the Exchange Act, then the date of distribution to you shall be delayed until the
earliest date upon which the distribution either would not result in a nonexempt short-swing transaction or would otherwise not result in liability under Section 16(b) of the Exchange Act. 

 

	Section 9.	Amendment and Termination.  

 As provided in Section 9 of the Plan,
the Board of Directors may at any time amend, suspend or discontinue the Plan and the Committee may at any time amend this Award 

 Award Date: January 28, 2016 

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Agreement. Notwithstanding the foregoing, no such action by the Board of Directors or the Committee shall amend Sections 1, 2, 3, 4, or 5 in a manner adverse to you or reduce the amount payable
hereunder in a material manner without your written consent. For this purpose, a change in the amount payable hereunder that occurs solely by reason of a change in the date or form of payment due to Section 409A of the Code or Section 16
of the Exchange Act shall in no case be treated as a reduction prohibited by this Section 9. Thus, for example, if an amount payable by reason of Section 8 is delayed by an amendment to this Award Agreement or other action undertaken to
comply with Section 409A of the Code and the amount payable is reduced solely by reason of a corresponding delay in the date of valuation of a share of Stock, such a change shall not be treated as a reduction prohibited by this Section 9.
This Section 9 shall be construed and applied so as to permit the Committee to amend this Award Agreement at any time in any manner reasonably necessary or appropriate in order to comply with the requirements of Section 16 of the Exchange
Act and of Section 409A of the Code, including amendments regarding the timing and form of payments hereunder. 
  

	Section 10.	Data Privacy Consent For Employees Located Outside Of The United States. 

 To the
extent recognized under applicable law, you hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Award Agreement by and among the Corporation for the
exclusive purpose of implementing, administering and managing your participation in the Plan. 
 You understand that the Corporation holds
certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships
held in the Corporation, details of all awards or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan (“Data”).
You understand that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in your country or elsewhere, and that the recipient’s country may
have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You
authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data
as may be required to a broker or other third party with whom the Corporation may elect to administer the settlement of any award. You understand that Data will be held only as long as is necessary to implement, administer and manage your
participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case
without cost, by contacting in writing your local human resources representative. You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your
refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative. 
  

	Section 11.	No Assurance of Employment; No Right to an Award; Value of Award. 

 Nothing
contained in the Plan or in this Award Agreement shall confer upon you any right to continue in the employ or other service of the Corporation or constitute any contract (of 

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employment or otherwise) or limit in any way the right of the Corporation to change your compensation or other benefits or to terminate your employment with or without cause. You acknowledge and
agree as follows: 
 (a) the Plan is discretionary in nature and that the Board of Directors may amend, suspend, or terminate it at any time;

 (b) the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future grants of any
Awards, or benefits in lieu of any Award even if Awards have been granted repeatedly in the past; 
 (c) all determinations with respect to
such future Awards, if any, including but not limited to the times when Awards shall be granted or when Awards shall vest, will be at the sole discretion of the Committee; 

(d) your participation in the Plan is voluntary; 

(e) the value of the Award is an extraordinary item of compensation, which is outside the scope of your employment contract (if any), except as
may otherwise be explicitly provided in your employment contract; 
 (f) the Award is not part of normal or expected compensation or salary
for any purpose, including, but not limited to, calculating termination, severance, resignation, redundancy, end of service, or similar payments, or bonuses, long-service awards, pension or retirement benefits; 

(g) the Award shall expire upon termination of your employment for any reason except as may otherwise be explicitly provided in the Plan and
this Award Agreement; 
 (h) the future value of the Award is unknown and cannot be predicted with certainty; and 

(i) no claim or entitlement to compensation or damages arises from the termination of the Award or diminution in value of the Award and you
irrevocably release the Corporation from any such claim that may arise. 
  

	Section 12.	Conflict.  

 In the event of a conflict between this Award Agreement and
the Plan, the Plan document shall control. 
  

	Section 13.	Compliance with Section 409A of the Code. 

 It is the intent of the
Corporation that your Award not be subject to taxation under Section 409A(a)(1) of the Code. Nevertheless, in the event that your Award is or could be subject to Section 409A of the Code, as determined by the Senior Vice President, Human
Resources, in consultation with the General Tax Counsel or his or her delegate, the following rules apply: (i) the Award will be interpreted and administered to meet the requirements of Sections 409A(a)(2), (3) and (4) of the Code and
thus to be exempt from taxation under Section 409A(a)(1) of the Code; (ii) no Award payment will be made on account of your termination of employment unless the termination of employment constitutes a “separation from service”
under 

 Award Date: January 28, 2016 

 Page
 13
 
  

 
Code section 409A(a)(2)(a)(i); and (iii) if you are a “specified employee” within the meaning of Code section 409A, any payment in respect of this Award made on account of a
termination of employment will be delayed for six (6) months following such termination of employment, and then made at the earliest date permitted by Section 409A of the Code. 

 

	Section 14.	Post-Employment Covenants & Stock Ownership Requirements. 

 Except where
prohibited by law, by accepting this Award Agreement through the procedure described above, you agree to the terms of the Post-Employment Covenants contained in Exhibit A to this Award Agreement and you acknowledge receipt of the Stock Ownership
Requirements (“Ownership Requirements”) attached as Exhibit B to this Award Agreement and agree to comply with such Ownership Requirements as amended from time to time. If you are not a Vice President (or above) on January 28, 2016,
but you are promoted to Vice President (or above) prior to January 28, 2019, the Ownership Requirements as in effect at that time shall become applicable to you on the date of your promotion to Vice President (or above). 

 

	Section 15.	English Language. 

 You have received the terms and conditions of this Award
Agreement and any other related communications, and you consent to having received these documents, in English. If you have received this Award Agreement or any other documents related to the Plan translated into a language other than English, and
if the translated version is different from the English version, the English version will control. 
 Quebec Residents Only: The
Parties have agreed that this Award Agreement, the Plan as well as any notice, document or instrument relating to them be drawn up in English only. You acknowledge that, upon your reasonable request, the Corporation will provide a French
translation of such documents to you. Les parties aux présentes ont convenu que la présente accord, le “Plan,” ainsi que tous autres avis, actes ou documents s’y rattachant soient rédigés en
anglais seulement. Vous reconnaissez que, à votre demande raisonnable, “the Corporation” fournit une traduction française de ces documents à vous. 

 

	Section 16.	Currency Exchange Risk. 

 If your functional currency is not the U.S. dollar, you
agree and acknowledge that you will bear any and all risk associated with the exchange or fluctuation of currency associated with the Award (the “Currency Exchange Risk”). You waive and release the Corporation and its subsidiaries from any
potential claims arising out of the Currency Exchange Risk. 
  

	Section 17.	Exchange Control Requirements. 

 You agree and acknowledge that you will comply
with any and all exchange control requirements applicable to the Award and any resulting funds including, without limitation, reporting or repatriation requirements. 
  

	Section 18.	Electronic Delivery; Execution. 

 By executing this Award Agreement, you consent
to receive copies of the Prospectus applicable to this Award from this internet site (http://www.stockplanconnect.com) as well as to 

 Award Date: January 28, 2016 

 Page
 14
 
  

 
electronic delivery of the Corporation’s annual report on Form 10-K, annual proxy statement and quarterly reports on Form 10-Q. This consent can only be withdrawn by written notice to the
Vice President of Compensation and Performance Management at the address noted below. The Corporation may, in its sole discretion, decide to deliver any documents related to the Award under the Plan or future Awards that may be awarded under the
Plan by electronic means or request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through any on-line or electronic system
established and maintained by the Corporation or another third party designated by the Corporation. 
 No Award is enforceable until you
properly acknowledge your acceptance by completing the electronic receipt or returning an executed copy of this Award Agreement to the Vice President of Compensation and Performance Management as soon as possible but in no event later than
May 31, 2016. Acceptance of this Award Agreement must be made only by you personally or by a person acting pursuant to a power of attorney in the event of your inability to acknowledge your acceptance due to your disability or deployment in the
Armed Forces (and not by your estate, your spouse or any other person) and constitutes your consent to any action taken under the Plan consistent with its terms with respect to this Award. The Committee has authorized electronic means for the
delivery and acceptance of this Award Agreement. If you desire to accept this Award, you must acknowledge your acceptance and receipt of this Award Agreement, either electronically or by signing and returning a copy of this letter on or before
May 31, 2016, as follows: 
  

	•	 	Electronic Acceptance: Go to http://www.stockplanconnect.com 

  

	•	 	By Mail: Nick Lossia, Vice President of Compensation and Performance Management, Lockheed Martin Corporation, Mail Point 126, 6801 Rockledge Drive, Bethesda, MD 20817 

Assuming prompt and proper acknowledgment of this Award Agreement as described, this Award will be effective as of the Award Date. 

 

	
	Sincerely,
	
	Patricia L. Lewis
	Senior Vice President, Human Resources

 (For written acceptance, please complete, sign and return by mail.) 

 

					
	Acknowledged by:	 		 	
			
	   
	 		 	   

	Signature	 		 	 Date

			
	   
	 		 	   

	Print Name	 		 	 Employee ID

 Award Date: January 28, 2016 

 Page
 15
 
  

 Appendix A 

Capitalized Terms 
  

			
	Average TSR	  	§ 3.2(a)
	Award	  	6th ¶
	 Award Date
 Cash-Based Award

Cash Flow
	  	 Header
 Plan

§ 4.2(a)

	Cash Flow Performance Factor	  	§ 4.2
	 Cash Flow Target
 Cause

Change of Control
	  	 § 2.1(c)
 § 8.2(a)

Plan

	 Code
 Committee
	  	 Plan
 1st ¶

	Corporation	  	6th ¶
	 Divestiture
 Employee

Exchange Act
 Good Reason

Insider
	  	 § 5.1(c)(2)
 Plan

Plan
 § 8.2(b)

Plan

	 Payable Portion
 Peer Performance Group
	  	 § 5.2(a)
 § 3.1

	 Performance-Based Award
 Performance
Period
	  	 Plan
 § 1.2

	Plan	  	1st ¶
	Potential Award	  	§ 2.1(d)
	 Retirement
 Return

ROIC
	  	 § 5.1(c)(3)
 § 4.1(a)

§ 4.1(a)

	 ROIC Performance Factor
 ROIC Target
	  	 § 4.1
 § 2.1(b)

	Subsidiary	  	Plan
	Target Award	  	6th ¶, § 1.1
	 Total Disability
 Total Stockholder
Return
	  	 § 5.1(c)(1)
 Plan; §
3.2(a)

	Total Stockholder Return Performance Factor	  	§ 3.1; § 3.2

 Award Date: January 28, 2016 

 Page
 16
 
  

 Exhibit A 

Post Employment Conduct Agreement 

(LTIP Grant) 
 This Post
Employment Conduct Agreement (this “PECA”) attached as Exhibit A to the Award Agreement with an Award Date of January 28, 2016 (the “Award Agreement”) is entered into in consideration of, among other things, the grant of a
Long Term Incentive Performance Award to me under the Award Agreement (the “LTIP”) pursuant to the Lockheed Martin Corporation 2011 Incentive Performance Award Plan, as amended (the “Plan”). References to the
“Corporation” shall include Lockheed Martin Corporation and its Subsidiaries. By accepting the LTIP, I agree as follows: 
 1. Protective
Covenants. 
 (a) Covenant Not To Compete – Without the express written consent of the “Required Approver,” during the one-year
(or two-year for Elected Officers) period following the date of my termination of employment (the “Termination Date”) with the Corporation, I will not, directly or indirectly, be employed by, provide services to, or advise a
“Restricted Company” (as defined in Section 6), whether as an employee, advisor, director, officer, partner or consultant, or in any other position, function or role that, in any such case, 

 

	 	(i)	oversees, controls or affects the design, operation, research, manufacture, marketing, sale or distribution of “Competitive Products or Services” (as defined in Section 6) of or by the Restricted Company,
or 

  

	 	(ii)	would involve a substantial risk that the “Confidential or Proprietary Information” (as defined in Section 1(c)) of the Corporation (including but not limited to technical information or intellectual
property, strategic plans, information relating to pricing offered to the Corporation by vendors or suppliers or to prices charged or pricing contemplated to be charged by the Corporation, information relating to employee performance, promotions or
identification for promotion, or information relating to the Corporation’s cost base) could be used to the disadvantage of the Corporation. 

Section 1(a)(i) and (ii) shall not apply to residents of California. 

To the extent permitted by applicable law, including but not limited to any applicable rules governing attorney conduct (such as the ABA Model
Rules of Professional Conduct and state versions thereof), Sections 1(a)(i) and (ii) and Section 1(b) relating to non-solicitation, shall apply to individuals who are employed by the Corporation in an attorney position and whose occupation
during the one-year (or two-year, for Elected Officers) period following employment with the Corporation does not include practicing law. 

In lieu of Section 1(a)(i) and (ii), as well as Section 1(b) relating to non-solicitation, the following Section 1(a)(iii)
shall apply to individuals who are employed by the Corporation in an attorney position, and whose occupation during the one-year (or two-year, for Elected Officers) period following employment with the Corporation includes practicing law. 

 

	 	(iii)	 Post-employment Activity As a Lawyer – I acknowledge that as counsel to the Corporation, I owe ethical and fiduciary obligations to the
Corporation and that at least some of these obligations will continue even after my Termination Date with the 

 Award Date: January 28, 2016 

 Page
 17
 
  

	 	
Corporation. I agree that after my Termination Date I will comply fully with all applicable ethical and fiduciary obligations that I owe to the Corporation. To the extent permitted by applicable
law, including but not limited to any applicable rules governing attorney conduct, I agree that I will not: 

  

	 	(a)	Represent any client in the same or a substantially related matter in which I represented the Corporation where the client’s interests are materially adverse to the Corporation; or 

 

	 	(b)	Disclose confidential information relating to my representation of the Corporation, including the disclosure of information that is to the disadvantage of the Corporation, except for information that is or becomes
generally known. 

 The Corporation’s Senior Vice President, General Counsel, and Corporate Secretary or the General Tax
Counsel, as applicable, will determine in his or her discretion whether an individual is employed by the Corporation in an attorney position. 
 (b)
Non-Solicit – Without the express written consent of the Required Approver, during the one-year period (two-year period for Elected Officers) following the Termination Date, I will not (i) interfere with any contractual relationship
between the Corporation and any customer, supplier, distributor or manufacturer of or to the Corporation to the detriment of the Corporation or (ii) induce or attempt to induce any person who is an employee of the Corporation to perform work or
services for any entity other than the Corporation. 
 (c) Protection of Proprietary Information – Except to the extent required by law,
following my Termination Date, I will have a continuing obligation to comply with the terms of any non-disclosure or similar agreements that I signed while employed by the Corporation committing to hold confidential the “Confidential or
Proprietary Information” (as defined below) of the Corporation or any of its affiliates, subsidiaries, related companies, joint ventures, partnerships, customers, suppliers, partners, contractors or agents, in each case in accordance with the
terms of such agreements. I will not use or disclose or allow the use or disclosure by others to any person or entity of Confidential or Proprietary Information of the Corporation or others to which I had access or that I was responsible for
creating or overseeing during my employment with the Corporation. In the event I become legally compelled (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or otherwise) to disclose any proprietary or
confidential information, I will immediately notify the Corporation’s Senior Vice President, General Counsel, and Corporate Secretary as to the existence of the obligation and will cooperate with any reasonable request by the Corporation for
assistance in seeking to protect the information. All materials to which I have had access, or which were furnished or otherwise made available to me in connection with my employment with the Corporation shall be and remain the property of the
Corporation. For purposes of this PECA, “Confidential or Proprietary Information” means Proprietary Information within the meaning of CRX-015C (a copy of which has been made available to me), including but not limited to information that a
person or entity desires to protect from unauthorized disclosure to third parties that can provide the person or entity with a business, technological, or economic advantage over its competitors, or which, if known or used by third parties or if
used by the person’s or entity’s employees or agents in an unauthorized manner, might be detrimental to the person’s or entity’s interests. Confidential or Proprietary Information may include, but is not limited to: 

 

	 	(i)	 existing and contemplated business, marketing and financial business information such as business plans and methods, marketing information, cost
estimates, 

 Award Date: January 28, 2016 

 Page
 18
 
  

	 	
forecasts, financial data, cost or pricing data, bid and proposal information, customer identification, sources of supply, contemplated product lines, proposed business alliances, and information
about customers or competitors, or 

  

	 	(ii)	existing or contemplated technical information and documentation pertaining to technology, know how, equipment, machines, devices and systems, computer hardware and software, compositions, formulas, products, processes,
methods, designs, specifications, mask works, testing or evaluation procedures, manufacturing processes, or production processes. 

 (d) No
Disparagement – Following the Termination Date, I will not make any statements, whether verbal or written, that disparage or reasonably may be interpreted to disparage the Corporation or its directors, officers, employees, technology,
products or services with respect to any matter whatsoever. 
 (e) Cooperation in Litigation and Investigations – Following the Termination
Date, I will, to the extent reasonably requested, cooperate with the Corporation in any pending or future litigation (including alternative dispute resolution proceedings) or investigations in which the Corporation or any of its subsidiaries or
affiliates is a party or is required or requested to provide testimony and regarding which, as a result of my employment with the Corporation, I reasonably could be expected to have knowledge or information relevant to the litigation or
investigation. Notwithstanding any other provision of this PECA, nothing in this PECA shall affect my obligation to cooperate with any governmental inquiry or investigation or to give truthful testimony in court. 

2. Consideration and Acknowledgement. I acknowledge and agree that the benefits and compensation opportunities being made available to me under the
Award Agreement are in addition to the benefits and compensation opportunities that otherwise are or would be available to me in connection with my employment by the Corporation and that the grant of the LTIP is expressly made contingent upon my
agreements with the Corporation set forth in this PECA. I acknowledge that the scope and duration of the restrictions in Section 1 are necessary to be effective and are fair and reasonable in light of the value of the benefits and compensation
opportunities being made available to me under the Award Agreement. I further acknowledge and agree that as a result of the high level executive and management positions I hold with the Corporation and the access to and extensive knowledge of the
Corporation’s Confidential or Proprietary Information, employees, suppliers and customers, these restrictions are reasonably required for the protection of the Corporation’s legitimate business interests. 

3. Remedies For Breach of Section 1; Additional Remedies of Clawback and Recoupment. 

(a) If I become (or currently am) an Insider (as defined in the Plan) or receive a Long-Term Incentive Performance Award, I agree, upon demand by the
Corporation, to forfeit, return or repay to the Corporation the “Benefits and Proceeds” (as defined below) in the event any of the following occur: 
  

	 	(i)	I breach any of the covenants or agreements in Section 1; 

  

	 	(ii)	The Corporation determines that either (a) my intentional misconduct or gross negligence, or (b) my failure to report another person’s intentional misconduct or gross negligence of which I had knowledge
during the period I was employed by the Corporation, contributed to the Corporation having to restate all or a portion of its financial statements filed for any period with the Securities and Exchange Commission; 

 Award Date: January 28, 2016 

 Page
 19
 
  

	 	(iii)	The Corporation determines that I engaged in fraud, bribery or any other illegal act or that my intentional misconduct or gross negligence (including the failure to report the acts of another person of which I had
knowledge during the period I was employed by the Corporation) contributed to another person’s fraud, bribery or other illegal act, which in any such case adversely affected the Corporation’s financial position or reputation; or

  

	 	(iv)	Under such other circumstances specified by final regulation issued by the Securities and Exchange Commission entitling the Corporation to recapture or clawback “Benefits and Proceeds” (as defined below).

 (b) The remedy provided in Section 3(a) shall not be the exclusive remedy available to the Corporation for any of the conduct
described in Section 3(a) and shall not limit the Corporation from seeking damages or injunctive relief. 
 (c) For purposes of this Section 3,
“Benefits and Proceeds” means (i) to the extent I have earned any of the LTIP, any cash paid to me, whether paid currently or deferred; and (ii) to the extent I have not earned the LTIP fully, all of my remaining rights, title or
interest in the LTIP. 
 4. Injunctive Relief. I acknowledge that the Corporation’s remedies at law may be inadequate to protect the Corporation
against any actual or threatened breach of the provisions of Section 1 or the conduct described in Section 3(a), and, therefore, without prejudice to any other rights and remedies otherwise available to the Corporation at law or in equity
(including but not limited to, an action under Section 3(a)), the Corporation shall be entitled to injunctive relief in its favor and to specific performance without proof of actual damages and without the requirement of the posting of any bond
or similar security. 
 5. Invalidity; Unenforceability. It is the desire and intent of the parties that the provisions of this PECA shall be
enforced to the fullest extent permissible. Accordingly, if any particular provision of this PECA is adjudicated to be invalid or unenforceable, this PECA shall be deemed amended to delete the portion adjudicated to be invalid or unenforceable, such
deletion to apply only with respect to the operation of this provision in the particular jurisdiction in which such adjudication is made. 
 6.
Definitions. Capitalized terms not defined in this PECA have the meaning given to them in the Plan, as applicable. For purposes of this PECA, the following terms have the meanings given below: 

(a) “Restricted Company” means The Boeing Company, General Dynamics Corporation, Northrop Grumman Corporation, the Raytheon Company, United
Technologies Corporation, Honeywell International Inc., BAE Systems Inc., L-3 Communications Corporation, the Harris Corporation, Thales, Airbus Group, Inc., Textron IncFinmeccanica SpA and (i) any entity directly or indirectly controlling,
controlled by, or under common control with any of the foregoing, and (ii) any successor to all or part of the business of any of the foregoing as a result of a merger, reorganization, consolidation, spin-off, split-up, acquisition,
divestiture, or similar transaction. 

 Award Date: January 28, 2016 

 Page
 20
 
  

 (b) “Competitive Products or Services” means products or services that compete with, or are an
alternative or potential alternative to, products sold or services provided by a subsidiary, business area, division or operating unit or business of the Corporation as of the Termination Date and at any time within the two-year period ending on the
Termination Date; provided, that, (i) if I had direct responsibility for the business of, or function with respect to, a subsidiary, or for a business area, division or operating unit or business of the Corporation at any time within the
two-year period ending on the Termination Date, Competitive Products or Services includes the products so sold or the services so provided during that two-year period by the subsidiary, business area, division or operating unit of the Corporation
for which I had responsibility, and (ii) if I did not have direct responsibility for the business of, or function with respect to, a subsidiary, or for a business area, division or operating unit or business of the Corporation at any time
within the two-year period ending on the Termination Date, Competitive Products or Services includes the products so sold or the services so provided by a subsidiary, business area, division or operating unit of the Corporation for which I had
access (or was required or permitted such access in the performance of my duties or responsibilities with the Corporation) to Confidential or Proprietary Information of the Corporation at any time during the two-year period ending on the Termination
Date. 
  

	(c)	“Required Approver” means: 

  

	 	(i)	with respect to the Chairman, President and Chief Executive Officer, the Management and Development Committee of the Corporation’s Board of Directors; 

 

	 	(ii)	with respect to an Elected Officer, the Corporation’s Chairman, President and Chief Executive Officer; or 

  

	 	(iii)	with respect to all other employees, the Senior Vice President, Human Resources of the Corporation. 

 (d)
“Elected Officer” means an officer of the Corporation who was elected to his or her position by the Corporation’s Board of Directors. 
 7.
Miscellaneous. 
 (a) The Plan, the Award Agreement (with Exhibit B) and this PECA constitute the entire agreement governing the terms of the award
of the LTIP to me. 
 (b) This PECA shall be governed by Maryland law, without regard to its provisions governing conflicts of law. Any enforcement of, or
challenge to, this PECA may only be brought in the Circuit Court of Maryland or the United States District Court for the District of Maryland. Both parties consent to the proper jurisdiction and venue of the Circuit Court of Maryland and the United
States District Court for the District of Maryland for the purpose of enforcing or challenging this PECA. 
 (c) This PECA shall inure to the benefit of the
Corporation’s successors and assigns and may be assigned by the Corporation without my consent. 
 (d) This PECA provides for certain obligations on my
part following the Termination Date and shall not, by implication or otherwise, affect in any way my obligations to the Corporation during the term of my employment by the Corporation, whether pursuant to written agreements between the Corporation
and me, the provisions of applicable Corporate policies that may be adopted from time to time or applicable law or regulation. 

 Award Date: January 28, 2016 

 Page
 21
 
  

 This PECA is effective as of the acceptance by me of the award of an LTIP under the Award
Agreement and is not contingent on the vesting of the LTIP. 

 Award Date: January 28, 2016 

 Page
 22
 
  

 Exhibit B 

Stock Ownership Requirements 
 Lockheed
Martin’s Stock Ownership Requirements for Key Employees apply to all senior level positions of Vice President and above. This reflects the expectations of our major stockholders that management demonstrate its confidence in Lockheed Martin
through a reasonable level of personal share ownership. This practice is consistent with other major U.S. corporations which link some portion of personal financial interests of key employees with those of shareholders. 

Stock Ownership Requirements 
  

			
	 Title
	  	 Annual Base Pay Multiple

	Chairman, President and Chief Executive Officer	  	6 times
	Chief Operating Officer	  	5 times
	Chief Financial Officer	  	4 times
	Executive Vice Presidents	  	3 times
	Senior Vice Presidents	  	2 times
	Other Elected Officers	  	2 times
	Other Vice Presidents	  	1 times

 Satisfaction of Requirements 

Covered employees may satisfy their ownership requirements with common stock in these categories: 

 

	 	•	 	Shares owned directly. 

  

	 	•	 	Shares owned by a spouse or a trust. 

  

	 	•	 	Shares represented by monies invested in 401(k) Company Common Stock Funds or comparable plans. 

  

	 	•	 	Share equivalents as represented by income deferred to the Company Stock Investment Option of the Deferred Management Incentive Compensation Plan (DMICP). 

 

	 	•	 	Unvested Restricted Stock Units 

  

	 	•	 	Unvested Performance Stock Units granted in 2014 (based on the Target Award). 

 Key employees will be required
to achieve the appropriate ownership level within 5 years and are expected to make continuous progress toward their target. Appointment to a new level will reset the five year requirement. Unexercised options prior to vesting are not counted toward
meeting the guidelines. 
 Holding Period 
 Covered
employees must retain net vested Restricted Stock Units and Performance Stock Units and the net shares resulting from any exercise of stock options if the ownership requirements are not yet satisfied. 

Covered employees are asked to report annually on their progress toward attainment of their share ownership goals.Exhibit

Exhibit 10.1

REXNORD CORPORATION 
DEFERRED COMPENSATION PLAN 
Effective as of January 1, 2016

Table of Contents

	
			
	 
	 
	Page

	 
	 
	 

	ARTICLE I
	DEFINITIONS.........................................................................................................................
	1

	1.01
	"Account".................................................................................................................................
	1

	1.02
	"Affiliate".................................................................................................................................
	1

	1.03
	"Annual Addition Limitation"..................................................................................................
	1

	1.04
	"Annual Installment Method"..................................................................................................
	1

	1.05
	"Base Salary"............................................................................................................................
	2

	1.06
	"Base Salary Deferral".............................................................................................................
	2

	1.07
	"Beneficiary"............................................................................................................................
	2

	1.08
	"Beneficiary Designation Form"..............................................................................................
	2

	1.09
	"Board".....................................................................................................................................
	2

	1.10
	"Change in Control".................................................................................................................
	2

	1.11
	"Committee".............................................................................................................................
	2

	1.12
	"Company"...............................................................................................................................
	2

	1.13
	"Company Contributions Account"..........................................................................................
	2

	1.14
	"Compensation Limit"..............................................................................................................
	2

	1.15
	"Controlled Group"..................................................................................................................
	2

	1.16
	"Deferral Account"...................................................................................................................
	3

	1.17
	"Deferral Amount"...................................................................................................................
	3

	1.18
	"Deferral Election"...................................................................................................................
	3

	1.19
	"Deferral Election Form".........................................................................................................
	3

	1.20
	"Distribution Election".............................................................................................................
	3

	1.21
	"Distribution Election Form"...................................................................................................
	3

	1.22
	"Eligible Employee".................................................................................................................
	3

	1.23
	"Employee"..............................................................................................................................
	3

	1.24
	"ERISA"...................................................................................................................................
	3

	1.25
	"Incentive Compensation"........................................................................................................
	3

	1.26
	"Incentive Compensation Deferral".........................................................................................
	4

	1.27
	"Matching Contributions"........................................................................................................
	4

	1.28
	"Measurement Funds"..............................................................................................................
	4

	1.29
	"Participant".............................................................................................................................
	4

	1.30
	"Performance-Based Compensation".......................................................................................
	4

	1.31
	"Performance Period"...............................................................................................................
	4

	1.32
	" Personal Retirement Account Contributions"........................................................................
	4

	1.33
	"Plan Year"...............................................................................................................................
	4

	1.34
	"Qualified Plan".......................................................................................................................
	5

	1.35
	"Retirement "............................................................................................................................
	5

	1.36
	"Retirement Benefit"................................................................................................................
	5

	1.37
	"Separation from Service"........................................................................................................
	5

	1.38
	"Termination Benefit"..............................................................................................................
	5

	1.39
	"Trustee"...................................................................................................................................
	5

	1.40
	"Unforeseeable Emergency"....................................................................................................
	5

	ARTICLE II
	DEFERRAL AND PERSONAL RETIREMENT ACCOUNT CREDITS..............................
	6

	2.01
	Base Salary Deferral.................................................................................................................
	6

Table of Contents
(continued)

	
			
	 
	 
	Page

	 
	 
	 

	2.02
	Incentive Compensation Deferral.............................................................................................
	6

	2.03
	Matching Contribution.............................................................................................................
	7

	2.04
	Personal Retirement Account Contribution..............................................................................
	7

	2.05
	Termination of Participation and/or Deferrals..........................................................................
	7

	ARTICLE III
	PLAN ACCOUNTS.................................................................................................................
	8

	3.01
	Vesting......................................................................................................................................
	8

	3.02
	Crediting/Debiting of Account Balances..................................................................................
	8

	3.03
	FICA and Other Taxes..............................................................................................................
	9

	ARTICLE IV
	RETIREMENT BENEFIT.......................................................................................................
	10

	4.01
	Retirement Benefit...................................................................................................................
	10

	4.02
	Distribution Election................................................................................................................
	10

	4.03
	Commencement of Payments...................................................................................................
	10

	4.04
	Changes to Retirement Benefit Payment Methods..................................................................
	10

	4.05
	Death Prior to Completion of Retirement Benefit...................................................................
	11

	4.06
	Death Prior to Retirement........................................................................................................
	11

	4.07
	Small Accounts.........................................................................................................................
	11

	4.08
	Change in Control After Retirement........................................................................................
	11

	4.09
	Deduction Limitation...............................................................................................................
	11

	ARTICLE V
	TERMINATION PRIOR TO RETIREMENT BENEFIT........................................................
	12

	5.01
	Termination Benefit..................................................................................................................
	12

	5.02
	Payment of Termination Benefit..............................................................................................
	12

	5.03
	Change in Control before Retirement......................................................................................
	12

	5.04
	Deduction Limitation...............................................................................................................
	12

	ARTICLE VI
	FINANCIAL EMERGENCY...................................................................................................
	12

	6.01
	Financial Hardship...................................................................................................................
	12

	6.02
	Amount of Financial Hardship Distribution.............................................................................
	13

	6.03
	Cancellation of Deferral Election upon Financial Emergency Distribution............................
	13

	ARTICLE VII
	BENEFICIARY DESIGNATION............................................................................................
	13

	7.01
	Beneficiary................................................................................................................................
	13

	7.02
	Beneficiary Designation or Change of Designation.................................................................
	13

	7.03
	Spousal Consent Required.......................................................................................................
	14

	7.04
	Acknowledgment.....................................................................................................................
	14

	7.05
	Absence of Valid Beneficiary Designation..............................................................................
	14

	7.06
	Doubt as to Beneficiary............................................................................................................
	14

	7.07
	Discharge of Obligations..........................................................................................................
	14

	ARTICLE VIII
	LEAVE OF ABSENCE............................................................................................................
	14

	8.01
	Paid Leave of Absence.............................................................................................................
	14

	8.02
	Unpaid Leave of Absence........................................................................................................
	14

	ARTICLE IX
	TERMINATION, AMENDMENT OR MODIFICATION......................................................
	15

	9.01
	Termination..............................................................................................................................
	15

	9.02
	Amendment..............................................................................................................................
	15

	9.03
	Effect of Payment.....................................................................................................................
	15

	ARTICLE X
	ADMINISTRATION................................................................................................................
	16

	10.01
	Committee Duties.....................................................................................................................
	16

Table of Contents
(continued)

	
			
	 
	 
	Page

	 
	 
	 

	10.02
	Agents.......................................................................................................................................
	16

	10.03
	Binding Effect of Decisions.....................................................................................................
	16

	10.04
	Indemnity of Committee..........................................................................................................
	16

	10.05
	Employer Information..............................................................................................................
	16

	ARTICLE XI
	CLAIMS PROCEDURE..........................................................................................................
	17

	11.01
	Presentation of Claim...............................................................................................................
	17

	11.02
	Notification of Decision...........................................................................................................
	17

	11.03
	Review of a Denied Claim.......................................................................................................
	17

	11.04
	Decision on Review..................................................................................................................
	18

	11.05
	Legal Action.............................................................................................................................
	18

	ARTICLE XII
	MISCELLANEOUS.................................................................................................................
	18

	12.01
	Plan Not Funded.......................................................................................................................
	18

	12.02
	Coordination with Other Benefits............................................................................................
	18

	12.03
	Company Liability....................................................................................................................
	19

	12.04
	Nonassignability.......................................................................................................................
	19

	12.05
	No Right to Continued Employment........................................................................................
	19

	12.06
	Choice of Law..........................................................................................................................
	19

	12.07
	Severability...............................................................................................................................
	19

	12.08
	Clawback..................................................................................................................................
	19

	12.09
	Captions....................................................................................................................................
	19

	12.10
	Non-Exclusivity of Plan...........................................................................................................
	19

	12.11
	Notice.......................................................................................................................................
	20

	12.12
	Successors................................................................................................................................
	20

	12.13
	Spouse's Interest.......................................................................................................................
	20

	12.14
	Minors, Incompetent Persons, etc............................................................................................
	20

	12.15
	Court Order...............................................................................................................................
	21

	12.16
	Requirement for Release..........................................................................................................
	21

REXNORD CORPORATION 
DEFERRED COMPENSATION PLAN
Rexnord Corporation hereby establishes this Rexnord Corporation Deferred Compensation Plan (the "Plan") effective as of January 1, 2016.  The purpose of this Plan is to provide certain specified benefits to a select group of management and highly compensated employees who contribute materially to the continued growth, development and future business success of Rexnord Corporation by (i) allowing those employees to receive credit for Company contributions which exceed the limits imposed by the Internal Revenue Code under the tax-qualified Rexnord Corporation 401(k) Plan and (ii) providing a means whereby certain amounts payable by the Company to selected employees may be deferred to some future period. 
This Plan is unfunded for tax purposes and for purposes of Title I of ERISA and is intended to satisfy and be in compliance with the provisions of the Internal Revenue Code of 1986 (the “Code”) as they relate to deferred compensation benefits, with particular emphasis on Code §409A.  If any provision or term of this document would be prohibited by or inconsistent with the requirements of Code §409A, then such provision or term shall be deemed to be reformed to comply with Code §409A.
ARTICLE I 
DEFINITIONS
1.01    "Account" shall mean the total of a Participant's Deferral Account and Personal Retirement Contribution Account.
1.02    "Affiliate" shall mean a member of the Controlled Group.  
1.03    "Annual Addition Limitation" shall mean the limitation on the annual additions to the account of a participant in the Qualified Plan imposed by Code §415(c).
1.04    "Annual Installment Method" shall mean a benefit payment method involving a series of annual installment payments over either five (5) years or ten (10) years as selected by the Participant in accordance with this Plan, which will be calculated in the manner set forth in this Section.  The Account Balance of the Participant will be determined as of the close of the business day that is closest to the date of distribution as administratively practicable. The annual installment will be calculated by multiplying this balance by a fraction, the numerator of which is one (1), and the denominator of which is the remaining number of annual payments due the Participant.  Each annual installment will be paid within the first sixty (60) days of the calendar year following the applicable year or as soon as administratively practicable.

	
			
	 
	1
	 

1.05    "Base Salary" shall mean all amounts included in a Participant's Compensation as defined in the Qualified Plan for Salary Deferral Contributions purposes other than amounts which are also Incentive Compensation (even if such other amounts would be included in Compensation under the Qualified Plan) and which, but for an Incentive Compensation Deferral Election under this Plan, would be paid to a Participant and considered to be "wages" for purposes of United States federal income tax withholding.  
1.06    "Base Salary Deferral" shall mean a deferral by a Participant of part or all of any Base Salary otherwise payable to him in accordance with Section 2.01.
1.07    "Beneficiary" shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article VII who or which are entitled to receive benefits under this Plan upon the death of a Participant.
1.08    "Beneficiary Designation Form" shall mean the form established from time to time by the Committee or its delegate that a Participant completes, signs and returns to the Committee or its delegate, in order to designate one or more Beneficiaries.
1.09    "Board" shall mean the Company’s Board of Directors. 
1.10    "Change in Control" shall mean any of the following events in which the Corporation does not survive: any merger, combination, consolidation, or other reorganization; any exchange of common stock or other securities of the Corporation; a sale of all or substantially all the business, stock or assets of the Corporation; a dissolution of the Corporation; or any other event in which the Corporation does not survive
1.11    "Committee" shall mean the Compensation Committee of the Board.
1.12    "Company" shall mean Rexnord Corporation, a Delaware corporation.
1.13    "Company Contributions Account" shall mean the bookkeeping account used to measure and determine a Participant’s interest in this Plan attributable to Matching Contributions and Personal Retirement Account Contributions, as adjusted for earnings and losses and distributions.
1.14    "Compensation Limit" shall mean the limitation imposed by Code § 401(a)(17) on the amount of Compensation which can be considered in determining the amount of an individual's Participant Contributions to the Qualified Plan.
1.15    "Controlled Group" shall mean any corporation which is a member of a controlled group of corporations (as defined by Code §414(b)) of which the Company is a member, any other trade or business (whether or not incorporated) which is under common control (as defined by Code §414(c)) with respect to the Company or any organization which is a member of an affiliated service group (as defined by s Code §414(m)) of which the Company is a member and any other entity required to be aggregated with the Company pursuant to regulations Code §414(o), but only for the period during which such other corporation, trade or business or organization 

	
			
	 
	2
	 

and the Company are members of such controlled group of corporations, are under such common control or are serving as members of such an affiliated service group.  
1.16    "Deferral Account" shall mean the bookkeeping account used to measure and determine a Participant’s interest in this Plan attributable to Base Salary Deferrals and Incentive Compensation Deferrals, as adjusted for earnings and losses and distributions.
1.17    "Deferral Amount" shall mean that portion of a Participant's Base Salary and Incentive Compensation that a Participant elects to have deferred, in accordance with Article II, for any one Plan Year.
1.18    "Deferral Election" shall mean an election made pursuant to Article II by a Participant to defer receipt of a part of his Base Salary or to defer receipt of all or a part of his Incentive Compensation. 
1.19    "Deferral Election Form" shall mean the form established from time to time by the Committee or its delegate that a Participant completes, signs and returns to the Committee or its delegate or completes electronically to make a Deferral Election pursuant to Article II, in order to defer receipt of a part of his Base Salary or to defer receipt of all or a part of his Incentive Compensation.
1.20    "Distribution Election" shall mean an election made pursuant to Article IV by a Participant to designate the form of distribution for his Retirement Benefit. 
1.21    "Distribution Election Form" shall mean the form established from time to time by the Committee or its delegate that a Participant completes, signs, and returns to the Committee or its delegates or completes electronically to designate the Distribution Election.
1.22    "Eligible Employee" shall mean an Employee who is employed in the United States or paid from United States payroll, in pay grade 44 or above and approved by the Compensation Committee or its designee as an Eligible Employee. 
1.23    "Employee" shall mean any person who is employed by the Company or an Affiliate.
1.24    "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as from time to time amended.
1.25    "Incentive Compensation" shall mean any award payable to a Participant under the Company's Management Incentive Plan or Sales Incentive Compensation Program or any other similar annual incentive plan maintained by the Company or an Affiliate with respect to a particular fiscal year of the Company and any signing or hiring bonus payable to a Participant with respect to a Plan Year, which, but for a Compensation Deferral Election under this Plan, would be paid to a Participant and considered to be "wages" for purposes of United States federal income tax withholding.

	
			
	 
	3
	 

1.26    "Incentive Compensation Deferral" shall mean a deferral by a Participant of part or all of any Incentive Compensation otherwise payable to him in accordance with Section 2.02.
1.27    "Matching Contributions" for any Plan Year shall mean the amount determined in accordance with Section 2.03.
1.28    "Measurement Funds" shall mean the investment vehicles offered under this Plan which are the same as the investment options offered under the Qualified Plan other than a  Company stock fund, each of whose purpose is to mirror, to the greatest extent reasonably possible, the investment performance of a particular benchmark fund.  Notwithstanding the foregoing, Measurement Funds shall not include any collective investment trusts, even if offered under the Qualified Plan.
1.29    "Participant" shall mean:
		
	(a)
	An Eligible Employee who elects to participate in the Plan and whose signed Deferral Election Form is accepted by the Committee or its delegate; or

		
	(b)
	An Eligible Employee entitled to a Personal Retirement Account Contribution under the Plan. 

A spouse or former spouse of a Participant will not be treated as a Participant in the Plan or have an Account Balance under the Plan, even if the spouse or former spouse has an interest in the Participant's benefits under the Plan as a result of applicable law or property settlements resulting from legal separation or divorce.
1.30    "Performance-Based Compensation" shall have the meaning set forth in Code §409A and the regulations thereunder.
1.31    "Performance Period" shall mean the period over which a Participant's entitlement to and amount of Incentive Compensation is measured.    
1.32    "Personal Retirement Account Contributions" for any Plan Year shall mean the amount determined in accordance with Section 2.04.
1.33    "Plan Year" shall mean the twelve (12) consecutive month period from January 1 through the following December 31. 

	
			
	 
	4
	 

1.34    "Qualified Plan" shall mean the Rexnord LLC 401(k) Plan, as amended from time to time. 
1.35    "Retirement " shall mean a Participant's Separation from Service on or after attainment of age sixty (60).  
1.36    "Retirement Benefit" shall mean the benefit due to a Participant upon Retirement.  
1.37    "Separation from Service" shall have the meaning assigned to such term under Code §409A and regulations thereunder.  In general, a Participant shall have a Separation from Service upon the termination of all employment with the Company and any Affiliate for any reason or a reduction in the level of bona fide services by the Participant to no more than 20 percent of the average level of bona fide services performed over the immediately preceding 36 month period, other than while the individual is on sick leave, military leave, or other bona fide leave of absence (such as temporary employment by the government) if the period of such leaves does not exceed twelve (12) months or, if longer, so long as the individual’s right to reemployment with the Company or any Affiliate is provided either by statute or contract. If the period of leaves exceeds twelve (12) months and the individual’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first day immediately following such twelve-month period.   
1.38    "Termination Benefit" shall mean the benefit set forth in Article V.
1.39    "Trustee" shall mean the trustee of any trust established by the Company to fund benefits under this Plan.
1.40    "Unforeseeable Emergency" shall mean a severe financial hardship to a Participant resulting from an illness or accident of the Participant or the Participant’s spouse or dependent (as defined in Code §152(a)), loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, as a result of a natural disaster), or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  For example, the imminent foreclosure of or eviction from the Participant’s primary residence may constitute an Unforeseeable Emergency.  In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the costs of prescription drug medication, may constitute an Unforeseeable Emergency.  Finally, the need to pay for funeral expenses of a spouse or a dependent (as defined in Code §152(a)) may also constitute an Unforeseeable Emergency.  Except as otherwise provided above, the purchase of a home and the payment of college tuition are not Unforeseeable Emergencies.  Whether a Participant is faced with an Unforeseeable Emergency is to be determined based on the relevant facts and circumstances of each case 

	
			
	 
	5
	 

Terms that are not otherwise defined in this Article I shall have the meanings set forth in the Qualified Plan document.

ARTICLE II
DEFERRAL AND PERSONAL RETIREMENT ACCOUNT CREDITS
2.01    Base Salary Deferral.  
		
	(a)
	Each Plan Participant will be permitted to make an irrevocable election to defer (such Deferral Election to be made in whole percentages) receipt of an amount equal to one percent (1%) through seventy-five percent (75%) of his Base Salary.  The Participant must deliver such Deferral Election Form to the Company before December 15th of the Plan Year immediately preceding the Plan Year for which the deferral is intended. Deferral Elections for Base Salary Deferrals shall not carry over from year to year.  

		
	(b)
	If an individual first becomes an Eligible Employee after the first day of a Plan Year, any Base Salary Deferral Election Form must be submitted within thirty (30) days of the date the individual first became an Eligible Employee.  Any such deferral will be implemented with the effect that the Participant’s deferred Base Salary would be limited to the amount of Base Salary not yet earned by the Participant as of the date the Participant submits a Deferral Election Form to the Company for acceptance.  

		
	(c)
	During each Plan Year, the Base Salary Deferral amount elected under this Section 2.01 will be withheld from each regularly scheduled Base Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Base Salary.

2.02    Incentive Compensation Deferral.  
		
	(a)
	Each Plan Participant will be permitted to make an irrevocable election to defer (such Deferral Election to be made in whole percentages) receipt of an amount equal to one percent (1%) through seventy-five percent (75%) of his Incentive Compensation.  To the extent that such Incentive Compensation constitutes Performance-Based Compensation, a Participant must deliver a Deferral Election Form to the Company at least six months before the last business day of the Performance Period.  To the extent that such Incentive Compensation does not constitute Performance-Based Compensation, a Participant must deliver a Deferral Election Form to the Company prior to the commencement of the 

	
			
	 
	6
	 

Performance Period over which the Participant earns such Incentive Compensation.  Deferral Elections for Incentive Compensation Deferrals shall not carry over from year to year.
		
	(b)
	If an Employee first becomes an Eligible Employee after the first day of a Performance Period, the amount of Incentive Compensation that the Participant may defer with respect to such Performance Period will be prorated to the extent necessary to reflect only the period beginning on the date the Participant submits a Deferral Election form to the Company or an Affiliate for acceptance and ending on the last day of the Performance Period.  Any election by such an Employee must be submitted within thirty (30) days of the date the individual first became an Eligible Employee, or, if later and to the extent that such Incentive Compensation qualifies is Performance-Based Compensation, at least six (6) months prior to the last business day of the Performance Period to which the Deferral Election relates.

		
	(c)
	The Incentive Compensation Deferral will be withheld at the time the Incentive Compensation is or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself.

2.03    Matching Contribution.  A Participant's Matching Contribution for any Plan Year shall be equal to fifty percent (50%) of amounts that the Participant defers under this Plan as a Base Salary Deferral or Incentive Compensation Deferral, with such Matching Contribution not to exceed 4% of a Participant's Base Salary (50% of 8% of a Participant's Base Salary).      
2.04    Personal Retirement Account Contribution.  A Participant's Personal Retirement Account Contribution for any Plan Year will be equal to the amount that the Company would have contributed to the Participant’s account in the Qualified Plan as a Personal Retirement Account Contribution to that Qualified Plan but for the application of the Annual Additions Limitation or the Annual Compensation Limitation under the Qualified Plan.  The Personal Retirement Account Contribution will be calculated quarterly and will be credited to the Participant’s Personal Retirement Account by the end of the month following the close of each calendar quarter.
2.05    Termination of Participation and/or Deferrals.  
		
	(a)
	Participant No Longer Eligible Employee.  If the Committee or its delegate determines in good faith that a Participant no longer qualifies as an Eligible Employee or a member of a select group of management or highly compensated employees, as membership in such group is determined in accordance with ERISA §§201(2), 301(a)(3) and 401(a)(1), the Participant shall be prevented from making future Deferral Elections.

		
	(b)
	Cancellation Upon Unforeseeable Emergency Distribution.  In the event that a Participant receives a distribution under Article VI due to an Unforeseeable 

	
			
	 
	7
	 

Emergency, a Participant's Deferral Election shall be cancelled as provided in such Article VI.  

ARTICLE III
 
PLAN ACCOUNTS

3.01    Vesting.  A Participant will have a one hundred percent (100%) vested interest in his Deferral Account.  A Participant will be vested in his Company Contributions Account after three (3) full years as an Eligible Employee or, if sooner, upon a Change in Control.  If a Participant has a Separation from Service prior to the completion of three (3) full years as an Eligible Employee or a Change in Control, he will forfeit his Company Contributions Account.    
3.02    Crediting/Debiting of Account Balances.  In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee or its delegate, in its sole discretion, amounts will be credited or debited to a Participant's Account Balance in the manner set forth in the provisions of this Section.  
		
	(a)
	Allocation to Measurement Funds.  A Participant, in connection with his initial Deferral Election in accordance with Section 2.01 or 2.02 above, will be permitted to also elect to have one or more Measurement Funds used to determine the amounts to be credited to his Account Balance and his election will continue to be in effect thereafter, unless it should be changed in accordance with subsection (c).

		
	(b)
	Crediting or Debiting Method.  The performance (either positive or negative) of each elected Measurement Fund will be determined by the Committee or its delegate, based on the performance of the Measurement Funds themselves.  A Participant's Account Balance will be credited or debited on a daily basis based on the performance of each Measurement Fund selected by the Participant, as determined by the Committee or its delegate in its sole discretion, as though: 

		
	(1)
	a Participant's Account Balance were actually invested in the Measurement Fund(s) selected by the Participant as of the close of business on any business day, at the closing price on that day; 

		
	(2)
	the portion of the Deferral Amount that was actually deferred during any calendar quarter were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable on such day, no later than the close of business on the first business day after the day on which such amounts are actually deferred from the Participant's Base Salary or 

	
			
	 
	8
	 

Incentive Compensation through reductions in his payroll, at the closing price on such date; and

		
	(3)
	any distribution made to a Participant that decreases such Participant's Account Balance ceased being invested in the Measurement Fund(s), in the applicable percentages, no earlier than one business day prior to the distribution, at the closing price on such date.  

		
	(c)
	Transfers among Measurement Funds.  The Participant will be permitted to change, on a daily basis, any previous Measurement Fund election or elections he has made with regard to his Account Balance.  The elections and changes to such elections which a Participant makes pursuant to this subsection will be made by means of any method (including any available telephonic or electronic method which is acceptable to the Committee or its delegate at the time the election or change is made by the Participant), and may be made at any time and will be effective as of the New York Stock Exchange closing immediately following the making of that election or change; provided, however, if it is determined by the Committee or its delegate that an investment election made by a Participant is invalid or defective, the Participant’s election, until duly corrected by him, will be deemed to have been made in favor of whatever short-term, money market vehicle is available under the Plan at that time.  

		
	(d)
	No Actual Investment.  Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant's election of any such Measurement Fund, the allocation to his Account Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account Balance will not be considered or construed in any manner as an actual investment of his Account Balance in any such Measurement Fund.  In the event that the Company or the Trustee, in its own discretion, decides to invest funds in any or all of the Measurement Funds, no Participant will have any rights in or to such investments themselves.  Without limiting the foregoing, a Participant's Account Balance will at all times be a bookkeeping entry only and will not represent any investment made on his behalf by the Company or any trust established by the Company to fund benefits under this Plan.  The Participant will at all times remain an unsecured creditor of the Company.

		
	(e)
	Company Reservation of Rights.  Consistent with the preceding sentence, nothing to the contrary in this Plan or any of its forms or communication material, nor in any document associated with the Trust, should be interpreted or understood to provide Participants or their Beneficiaries with any current, direct rights with respect to any assets held by the Trustee.

	
			
	 
	9
	 

3.03    FICA and Other Taxes.
		
	(a)
	Deferral Amounts.  For each Plan Year in which a Deferral Amount is being withheld from a Participant or a Personal Retirement Account Contribution is credited, the Company or any Affiliate employing the Participant will withhold from that portion of the Participant’s Base Salary and Incentive Compensation which is not being deferred the Participant’s share of FICA and other employment taxes on such Deferral Amount and Personal Retirement Account Contribution.

		
	(b)
	Distributions.  The Company or any Affiliate employing the Participant, or the Trustee, will withhold from any payments made to a Participant under this Plan all federal, state and local income, employment and other taxes required to be withheld in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Company and the Trustee.

ARTICLE IV
RETIREMENT BENEFIT
4.01    Retirement Benefit.  Following a Participant's Retirement, such Participant shall receive his vested Account Balance as a Retirement Benefit payable in accordance with Section 4.02.
4.02    Distribution Election.  A Participant, in connection with his commencement of participation in the Plan, may elect to receive his Retirement Benefit in a lump sum or pursuant to an Annual Installment Method by submitting a Distribution Election Form to the Company at the time of his initial Deferral Election or, if earlier, within thirty (30) days of the date he first becomes a Participant.  A Participant who becomes a Participant by commencing a Deferral Election must submit a Distribution Election Form at the time he submits his Deferral Election Form.  A Participant who becomes a Participant due to eligibility for a Personal Retirement Account Contribution must submit a Distribution Election Form within thirty (30) days of the date he first becomes a Participant. Any Participant who fails to complete and deliver a valid Distribution Election Form within the timeframes set forth in this Section 4.02 shall receive his Retirement Benefit in a lump sum distribution at the time specified in Section 4.03 below.
4.03    Commencement of Payments.  A lump sum payment will be made, or installment payments will commence, as soon as administratively practicable after the date that is six (6) months after the date of a Participant's Separation from Service.  Any subsequent annual installments will be paid in January of each Plan Year.  
4.04    Changes to Retirement Benefit Payment Methods.
		
	(a)
	A Participant may change any Distribution Election he has previously made pursuant to Section 4.01, provided, however, that only one such change may be made and that any such change must:  

		
	(1)
	not result in the acceleration of payments;

	
			
	 
	10
	 

		
	(2)
	not be effective for 12 months after such change is made;

		
	(3)
	result in the deferral of payments with respect to which the election is changed for a period of at least 5 years (e.g., change from lump sum to installments commencing 5 years from a participant’s termination date);

		
	(4)
	not be made less than 12 months prior to the first scheduled payment.

		
	(b)
	Such change will be accomplished by the Participant submitting notice of such change to the Company on a new Distribution Election Form, but such change will not be valid, unless it has been submitted by the Participant and accepted by the Company at least one (1) year prior to the Participant's Retirement.  The Distribution Election Form most recently accepted by the Committee or its delegate shall govern the payout of the Retirement Benefit.

4.05    Death Prior to Completion of Retirement Benefit.  If a Participant dies after Retirement but before the Retirement Benefit is paid in full, the Participant's unpaid Retirement Benefit payments shall paid to the Participant's Beneficiary in a lump sum distribution as soon as administratively practicable following the Participant's death. 
4.06    Death Prior to Retirement.  If a Participant dies while still employed with the Company but while eligible for Retirement, the Participant's benefits shall be paid to the Participant's Beneficiary in a lump sum distribution as soon as administratively practicable following the Participant's death. 
4.07    Small Accounts.  Notwithstanding any other provision herein to the contrary, if the aggregate total of a Participant’s Account Balance along with the value of such Participant’s account balance or benefits under any other plan of the Company with which this Plan is required to be aggregated with under Code §409A as of such Participant’s Retirement date does not exceed the dollar amount of the deferral limit then in effect under Code §402(g), the Participant’s Retirement Benefit shall be paid in a lump sum.
4.08    Change in Control After Retirement.  If a Change in Control occurs after a Participant's Retirement or while a Participant is Retirement-eligible but before the Retirement Benefit is paid in full, the Participant's entire Account Balance shall paid to the Participant in a lump sum distribution as soon as administratively practicable following the Change in Control.  

4.09    Deduction Limitation.  A payment otherwise required to be made pursuant to the provisions of this Article IV shall be delayed if the Company reasonably anticipates that the Company’s deduction with respect to such payment would be limited or eliminated by application of Code Section 162(m); provided, however that such payment shall be made on the earliest date on which the Company anticipates that the deduction of the payment of the amount will not be limited or eliminated by application of Code Section 162(m).  In any event, such 

	
			
	 
	11
	 

payment shall be made no later than the last day of the calendar year in which the Participant has a Separation from Service. 
ARTICLE V
TERMINATION PRIOR TO RETIREMENT BENEFIT  
5.01    Termination Benefit.  Following a Participant's Separation from Service prior to Retirement, such Participant shall receive his vested Account Balance as a Termination Benefit payable in accordance with Section 5.02.
5.02    Payment of Termination Benefit.  The form of payment of a Participant’s Account Balance, if such payment is due to the Participant’s Separation from Service prior to Retirement, will in all cases be a lump sum, which will be distributed as soon as administratively practicable after the date that is six (6) months after the date of a Participant's Separation from Service.  
5.03    Change in Control before Retirement.  If a Change in Control occurs prior to a Participant's Separation from Service, the Participant's entire Account Balance will be paid to the Participant in a lump sum distribution as soon as administratively practicable following the Change in Control.
5.04    Deduction Limitation.  A payment otherwise required to be made pursuant to the provisions of this Article V shall be delayed if the Company reasonably anticipates that the Company’s deduction with respect to such payment would be limited or eliminated by application of Code Section 162(m); provided, however that such payment shall be made on the earliest date on which the Company anticipates that the deduction of the payment of the amount will not be limited or eliminated by application of Code Section 162(m).  In any event, such payment shall be made no later than the last day of the calendar year in which occurs the six (6) month anniversary the Participant's Separation from Service.
ARTICLE VI
FINANCIAL EMERGENCY
6.01    Financial Hardship.  A partial or total distribution of the Participant’s Account shall be made prior to a Participant's Separation from Service upon the Participant’s request and a demonstration by the Participant of severe financial hardship as a result of an Unforeseeable Emergency.  Such distribution shall be made in a single sum as soon as administratively practicable following the Committee’s or its delegate's determination that the foregoing requirements have been met.  In any case, a distribution due to Unforeseeable Emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of 

	
			
	 
	12
	 

deferrals under Section 6.02  and any other nonqualified deferred compensation plan of the account balance type sponsored by the Company or an Affiliate.  

6.02    Amount of Financial Hardship Distribution.  Distributions because of an Unforeseeable Emergency must be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution).  Determinations of amounts reasonably necessary to satisfy the emergency need must take into account any additional compensation that is available because of cancellation of a deferral election under Section 2.01 or Section 2.02 and any other nonqualified deferred compensation plan of the account balance type sponsored by the Company or an Affiliate upon a payment due to an Unforeseeable Emergency.  The payment may be made from any arrangement in which the Participant participates that provides for payment upon an Unforeseeable Emergency, provided that the arrangement under which the payment was made must be designated at the time of payment.
6.03    Cancellation of Deferral Election upon Financial Emergency Distribution.  In the event that a Participant makes application for a hardship distribution under Section 6.01 and the Committee or its designee determines that an Unforeseeable Emergency exists, all deferral elections otherwise in effect under Article II and any other nonqualified deferred compensation plan of the account balance type sponsored by the Company or its Affiliates shall immediately terminate upon such determination.  To resume deferrals thereafter, a Participant must make an election satisfying the provisions of Section 2.01 or 2.02, as the case may be, as those provisions apply to someone who is already a Participant in the Plan.    
ARTICLE VII 
 
BENEFICIARY DESIGNATION
7.01    Beneficiary.  Each Participant will have the right, at any time, to designate his Beneficiary or Beneficiaries (both primary and contingent) to receive any benefits payable under the Plan to a beneficiary upon the death of a Participant.  The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of the Company or an Affiliate in which the Participant participates.
7.02    Beneficiary Designation or Change of Designation.  A Participant will be permitted to designate his Beneficiary by completing and signing the Beneficiary Designation Form, and returning it to the Company.  A Participant will have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Company’s rules and procedures, as in effect from time to time.  Upon the acceptance by the Company of a new Beneficiary Designation Form, all Beneficiary designations previously filed will be canceled.  The Company will be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Company prior to the Participant’s death.

	
			
	 
	13
	 

7.03    Spousal Consent Required.  If a Participant names someone other than his spouse as a Beneficiary, a spousal consent, in the form designated by the Company, must be signed by that Participant's spouse and returned to the Company. 
7.04    Acknowledgment.  No designation or change in designation of a Beneficiary will be effective until received by the Company.
7.05    Absence of Valid Beneficiary Designation.  If a Participant fails to designate a Beneficiary as provided in the preceding Sections or, if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant's benefits, then the Participant's designated Beneficiary will be deemed to be his surviving spouse.  If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary will be payable to the executor or personal representative of the Participant's estate.
7.06    Doubt as to Beneficiary.  If the Committee or its delegate has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee or its delegate will have the right, exercisable in its discretion, to withhold such payments until this matter is resolved to the Committee's or the delegate’s satisfaction.
7.07    Discharge of Obligations.  The payment of benefits under the Plan to a Beneficiary will fully and completely discharge the Company and all of its Affiliates and the Committee from all further obligations under this Plan with respect to the Participant, and that Participant's participation in this Plan will terminate upon such full payment of benefits.
ARTICLE VIII 
 
LEAVE OF ABSENCE
8.01    Paid Leave of Absence.  If a Participant is authorized by the Company or the Affiliate employing the Participant for any reason to take a paid leave of absence, the Participant will continue to be considered to be an Employee and the Deferral Amount will continue to be withheld during such paid leave of absence.

8.02    Unpaid Leave of Absence.  If a Participant is authorized by the Company or the Affiliate employing the Participant to take an unpaid leave of absence, the Participant will continue to be considered to be an Employee and the Participant will be excused from making deferrals until the earlier of the date the leave of absence expires or the Participant returns to a paid employment status.  Upon such expiration or return, deferrals will resume for the remaining portion of the Plan Year in which the expiration or return occurs, based on the Deferral Election, if any, made for that Plan Year.  If no Deferral Election was made for that Plan Year, no deferral will be withheld.

	
			
	 
	14
	 

ARTICLE IX
TERMINATION, AMENDMENT OR MODIFICATION
9.01    Termination.  Although the Company and each Affiliate anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that the Company or any such Affiliate will continue the Plan or will not terminate the Plan at any time in the future.  Accordingly, the Company reserves the right to discontinue sponsorship of the Plan and/or to terminate the Plan at any time with respect to any or all of its participating Employees, by action of the Committee.  
If this Plan is terminated, no additional deferrals or contributions shall be credited to any Participant Account hereunder.  Following Plan termination, Participants’ Accounts shall be paid at such time and in such form as provided under the Plan.  Notwithstanding the preceding sentence, either at the time of termination or on a subsequent date the Company may, in its discretion, determine to distribute the then existing Account balances of Participants and Beneficiaries and, following such distribution, there shall be no further obligation to any Participant or Beneficiary under this Plan; provided, however, that the authority granted to the Company under this sentence shall be implemented only to the extent permissible under Code §409A and regulations and other guidance issued by the Internal Revenue Service interpreting the provisions of that Section.
9.02    Amendment.  The Company may, at any time, amend or modify the Plan in whole or in part by action of the Committee; provided, however, that:
		
	(a)
	no amendment or modification shall be effective to decrease or restrict the value of a Participant's Account Balance in existence at the time the amendment or modification is made, calculated as if the Participant had experienced a Separation from Service as of the effective date of the amendment or modification or, if the amendment or modification occurs after the date upon which the Participant was eligible to Retire, the Participant had Retired as of the effective date of the amendment or modification; and

		
	(b)
	the amendment or modification of the Plan shall not affect any Participant or Beneficiary who has become entitled to the payment of benefits under the Plan as of the date of the amendment or modification.

Notwithstanding the foregoing, the Committee may make any amendment it deems necessary or desirable for purposes of compliance with the requirements of Code §409A and regulations thereunder. 

	
			
	 
	15
	 

9.03    Effect of Payment.  The full payment of all applicable benefits hereunder shall completely discharge all obligations to a Participant and his Beneficiaries under this Plan.
ARTICLE X
ADMINISTRATION
10.01    Committee Duties.  Except as otherwise provided in this Article, this Plan will be administered by the Committee and its delegates.  The Committee will also have the discretion and authority to:
		
	(c)
	make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan, and 

		
	(d)
	decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan.  

When making a determination or calculation, the Committee will be entitled to rely on information furnished by a Participant or the Company.
10.02    Agents.  In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to the Company any Affiliate.  The Company’s Chief Human Resources Officer, will at all times, unless otherwise determined by the Committee, be deemed to be and shall be specifically referred to herein as the Committee’s delegate for all purposes herein.
10.03    Binding Effect of Decisions.  The decision or action of the Committee or its delegate with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder will be final and conclusive and binding upon all persons having any interest in the Plan.
10.04    Indemnity of Committee.  The Company and its Affiliates shall indemnify and hold harmless the members of the Committee, any Employee to whom the duties of the Committee may be delegated, and the Committee or its delegate against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee, any of its members, or such Employee.
10.05    Employer Information.  To enable the Committee and its delegates to perform their functions, the Company will supply full and timely information to the Committee and delegates on all matters relating to the compensation of its Participants, the date and circumstances of the Retirement, Disability, death or circumstances of the Retirement, Disability, death or Separation from Service of its Participants, and such other pertinent information as the Committee or its delegate may reasonably require.

	
			
	 
	16
	 

ARTICLE XI
CLAIMS PROCEDURE
11.01    Presentation of Claim.  Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee or its delegate a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan.  If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within one hundred and eighty (180) days of the date on which the event that caused the claim to arise occurred.  The claim must state with particularity the determination desired by the Claimant.
11.02    Notification of Decision.  The Committee or its delegate will consider a Claimant's claim within a reasonable time, and will notify the Claimant in writing:
		
	(a)
	that the Claimant's requested determination has been made, and that the claim has been allowed in full; or

		
	(b)
	that the Committee or its delegate has reached a conclusion contrary, in whole or in part, to the Claimant's requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant;

		
	(c)
	the specific reason(s) for the denial of the claim, or any part of it;

		
	(1)
	specific reference(s) to pertinent provisions of the Plan upon which such denial was based;

		
	(2)
	a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and

		
	(3)
	an explanation of the claim review procedure set forth in Section 11.03 below.

11.03    Review of a Denied Claim.  Within sixty (60) days after receiving a notice from the Committee or its delegate that a claim has been denied, in whole or in part, a Claimant (or the Claimant's duly authorized representative) may file with the Committee or its delegate a written request for a review of the denial of the claim.  Thereafter, but not later than thirty (30) days after the review procedure began, the Claimant (or the Claimant's duly authorized representative):
		
	(a)
	may review pertinent documents;

	
			
	 
	17
	 

		
	(b)
	may submit written comments or other documents; and/or

		
	(c)
	may request a hearing, which the Committee or its delegate, in its sole discretion, may grant.

11.04    Decision on Review.  The Committee or its delegate will render any decision on review promptly, and not later than 60 days after the filing of a written request for review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the Committee's or its delegate’s decision must be rendered within one hundred and twenty (120) days after such date.  Such decision must be written in a manner calculated to be understood by the Claimant, and it must contain:
		
	(a)
	specific reasons for the decision;

		
	(b)
	specific reference(s) to the pertinent Plan provisions upon which the decision was based; and

		
	(c)
	such other matters as the Committee or its delegate deems relevant.

11.05    Legal Action.  A Claimant's compliance with the foregoing provisions of this Article 11 is a mandatory prerequisite to a Claimant's right to commence any legal action with respect to any claim for benefits under this Plan.
ARTICLE XII 
 
MISCELLANEOUS
12.01    Plan Not Funded.  Awards payable under this Plan shall be payable from the general assets of the Company, and no special or separate reserve, fund or deposit shall be made to assure payment of such awards. No participant,  beneficiary or other person shall have any right, title or interest in any fund or in any specific asset of the Company or any of its Subsidiaries by reason of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company or any of its Subsidiaries and any participant, beneficiary or other person. To the extent that a participant, beneficiary or other person acquires a right to receive payment pursuant to any award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company.  Notwithstanding the foregoing, the Company may finance its obligation hereunder on an ongoing or periodic basis via a grantor trust that the Company implements.
12.02    Coordination with Other Benefits.  The benefits provided for a Participant and Participant's Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Company and its Affiliates.  The Plan will supplement and will not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

	
			
	 
	18
	 

12.03    Company Liability.  The Company’s or an Affiliate's liability for the payment of benefits will be defined only by the Plan.  The Company and its Affiliates will have no obligation to a Participant under the Plan, except as expressly provided in the Plan.
12.04    Nonassignability.  Neither a Participant nor any other person will have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable.  No part of the amounts payable will, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participant's or any other person's bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise.
12.05    No Right to Continued Employment.  Nothing contained in this Plan (or in any other documents under this Plan or in any award) shall confer upon any Eligible Person or other participant any right to continue in the employ or other service of the Corporation or any of its Subsidiaries, constitute any contract or agreement of employment or other service or affect an employee’s status as an employee at will, nor shall interfere in any way with the right of the Corporation or any of its Subsidiaries to change a person’s compensation or other benefits, or to terminate his or her employment or other service, with or without cause. Nothing in this Section 12.05, however, is intended to adversely affect any express independent right of such person under a separate employment or service contract other than an award agreement.
12.06    Choice of Law.  Subject to ERISA, this Plan and all other related documents shall be governed by and construed in accordance with the laws of the State of Delaware.
12.07    Severability.  If a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of this Plan shall continue in effect.
12.08    Clawback.  The awards granted under this Plan are subject to the terms of the Company’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of cash received under this Plan.  
12.09    Captions.  Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Plan or any provision thereof.
12.10    Non-Exclusivity of Plan.  Nothing in this Plan shall limit or be deemed to limit the authority of the Committee to authorize any other compensation under any other plan or authority.  

	
			
	 
	19
	 

12.11    Notice.  Any notice or filing required or permitted to be given to the Committee under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below: 
Chief Human Resources Officer 
Rexnord Corporation 
247 Freshwater Way 
Milwaukee, WI  53204
Such notice will be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.
Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.
12.12    Successors.  The provisions of this Plan shall bind and inure to the benefit of the Company and its successors and assigns and the Participant and the Participant's designated Beneficiaries.
12.13    Spouse's Interest.  The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant will automatically pass to the Participant and will not be transferable by such spouse in any manner, including but not limited to such spouse's will, nor will such interest pass under the laws of intestate succession.
12.14    Minors, Incompetent Persons, etc.  If the Committee or its delegate determines that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person's property, the Committee or its delegate may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person.  The Committee or its delegate may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment for the account of the Participant and the Participant's Beneficiary, as the case may be, and will be a complete discharge of any liability under the Plan for such payment amount.

	
			
	 
	20
	 

12.15    Court Order.  The Committee or its delegate is authorized to make any payments directed by court order in any action in which the Plan or the Committee has been named as a party.  In addition, if a court determines that a spouse or former spouse of a Participant has an interest in the Participant’s benefits under the Plan in connection with a property settlement or otherwise, the Committee or its delegate, in its sole discretion, will have the right, notwithstanding any election made by a Participant, to immediately distribute the spouse's or former spouse's interest in the Participant’s benefits under the Plan to that spouse or former spouse.
12.16    Requirement for Release.  Any payment to any Participant or a Participant's present, future or former spouse or Beneficiary in accordance with the provisions of this Plan will, to the extent thereof, be in full satisfaction of all claims against the Plan and the Company, and the Company may require such Participant or Beneficiary, as a condition precedent to such payment to execute a receipt and release to such effect.

Signed:     /s/ George Powers

Name:         George Powers

Title:        Chief Human Resources Officer

Date:        10/26/2015

	
			
	 
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