Document:

Early Retirement Agreement

 Exhibit 10.j 
 AGREEMENT 
 THIS AGREEMENT, by and between A. O. Smith Corporation, a Delaware
corporation, hereinafter referred to as “A. O. Smith” and W. David Romoser, an individual, hereinafter referred to as “Romoser”. 
 WHEREAS, Romoser is currently employed by A.O. Smith in the capacity of Senior Vice President, General Counsel and Secretary of A. O. Smith Corporation; and 
 WHEREAS, Romoser desires to retire and terminate the employment relationship with A. O. Smith and A. O. Smith deems it necessary for Romoser to
remain available as needed through December 31, 2008 to assist in business and legal matters; 
 NOW, THEREFORE, in consideration
of the mutual covenants herein contained, it is agreed as follows: 
  

	1.	Romoser will resign as the Senior Vice President, General Counsel and Secretary of A. 0. Smith Corporation effective May 31, 2007, and will retire from A. O. Smith effective
July 15, 2007. 

  

	2.	Romoser and A. O. Smith shall enter into the Consulting Agreement attached as Exhibit 1 to allow A. O. Smith to have the services of Romoser to assist in pending business and legal
matters through December 31, 2008. 

  

	3.	A. O. Smith agrees to continue group health and dental insurance coverage for Romoser and his eligible dependents through October 31, 2008, provided Romoser pays the applicable
employee contribution toward the coverage. A. O. Smith’s medical coverage will become secondary to Medicare on January 1, 2008 with respect to the coverage for Romoser’s spouse based on her Medicare eligibility. A. O. Smith will
reimburse Romoser for the Part B Medicare premium paid on behalf of Romoser’s spouse for the period January 1, 2008 through October 31, 2008. Effective August 1, 2008, A. O. Smith’s medical coverage for Romoser will become
secondary to Medicare based on his attainment of age 65 on July 12, 2008. A. O. Smith will reimburse Romoser for his Part B Medicare premium during the period August 1, 2008 through October 31, 2008. 

  

	4.	Romoser shall be eligible to receive company matching contributions in the Profit Sharing Retirement Plan for the portion of 2007 he worked provided he has an account in the plan on
December 31, 2007 with an account balance equal to or greater than the amount he contributed to the plan in 2007. 

  

 1 

	5.	Romoser shall be eligible to receive an annual bonus under the A. O. Smith Combined Executive Incentive Compensation Plan for 2007 computed as if he had participated in the plan
through December 31, 2007. 

  

	6.	Romoser shall be eligible for the use of his current company leased car until December 31, 2007. At such time, he shall have the option of returning the car or purchasing the
car per the normal lease agreement. During his use of the company leased car, 

 A. O. Smith shall maintain all existing
collision, comprehensive and liability insurance on the car, and Romoser shall be responsible for all operating and maintenance costs. 
  

	7.	The payment by A. O. Smith of fees and dues for club membership Romoser currently is provided will be continued through December 31, 2007. 

  

	8.	A. O. Smith agrees to continue its practice of reimbursing Romoser for the income taxes due on the imputed or reportable income related to A. O. Smith’s payment of club fees
and dues, and lease payments on the company car. 

  

	9.	The payment of Romoser’s supplemental monthly pension benefit and the roll out of his split dollar life insurance policies shall be delayed until February 2008 as required
under Section 409A of the Internal Revenue Code. Calculation of the amounts due shall be based on a retirement date of July 15, 2007, with a benefit commencement date of August 1, 2007. 

  

	10.	Romoser agrees to release and forever discharge A. O. Smith Corporation and any of their affiliated companies, their officers, directors and employees of and from any and all
claims, demands, rights, liabilities and causes of action of whatsoever kind or nature, arising out of or in connection with his employment. This release specifically encompasses all claims of employment discrimination based on race, color,
religion, sex and national origin under Title VII of the Civil Rights Act of 1964 or under Section 1981 of the Civil Rights Act of 1866, all claims of age discrimination under the Age Discrimination in Employment Act of 1967 (ADEA), all claims
under the Employee Retirement Income Security Act (ERISA), all claims of employment discrimination under the Americans with Disabilities Act (ADA), any claim for severance pay under the A. O. Smith Severance Pay Plan, all claims based on any express
or implied employment contract as well as claims under any applicable state or local law concerning employment. This release shall not apply to: (i) any claims for benefits under applicable unemployment compensation law; (ii) any claim for
vested benefits under A. O. Smith’s pension and savings plans; (iii) any rights that Romoser may have to indemnification to the extent provided in A. O. Smith’s articles of incorporation, bylaws, or indemnification agreements to which
Romoser is a party; (iv) any rights that Romoser may have under any directors or officers insurance policies; and (v) the rights established under this Agreement. This release shall also not apply to any right or claims under the Age
Discrimination and Employment Act of 1967 (ADEA) which arise after the date this Agreement is executed. 

  

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	11.	Romoser agrees that he will not disclose the terms, amounts and facts of this Agreement to anyone other than to his financial or tax advisor, attorney or immediate family members.

  

	12.	Romoser shall have the right to revoke this Agreement within seven (7) days after he executes it, by providing written notice of such revocation to A. O. Smith. This Agreement
shall not be effective or enforceable until the seven-day revocation period has expired. 

  

	13.	Romoser acknowledges that he has been advised by A. O. Smith to seek the advice of an attorney regarding this Agreement and that he has been given 21 days to decide whether to agree
to its terms. 

  

	14.	The illegality or unenforceability of any legal and enforceable provision of this Agreement shall not affect the validity and enforceability of any legal and enforceable provision
of this Agreement. 

  

	15.	This Agreement shall supersede and replace all prior written and oral agreements between the parties regarding the subject matter of this Agreement. 

  

	16.	This Agreement will be binding upon any successors and assigns of A. O. Smith. 

 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year indicated below. 
  

							
		 		 	A. O. SMITH CORPORATION
				
	Dated : 6/4/07	 		 	By:	 	/s/ Mark A. Petrarca
		 		 		 	Mark A. Petrarca
		 		 		 	Senior Vice President
		 		 		 	Human Resources & Public Affairs
				
	Dated: June 4, 2007	 		 	By:	 	/s/ W. David Romoser
		 		 		 	W. David Romoser

  

 3 

 Exhibit 1 
 CONSULTING AGREEMENT 
 THIS AGREEMENT made and entered into this 4th day of
June, 2007, between A. O. Smith Corporation, a Delaware corporation (“A. O. Smith”) and W. David Romoser (“Consultant”). 
 WHEREAS, Consultant will retire from his employment with A. O. Smith as Senior Vice President and General Counsel on July 15, 2007; and 
 WHEREAS, A. O. Smith wishes to retain Consultant to provide legal consulting services following his retirement and Consultant
wishes to provide such services to A. O. Smith; 
 NOW, THEREFORE, in consideration of the mutual covenants contained
herein, A. O. Smith and Consultant agree as follows: 
  

	 1.
	 Consulting Services. Consultant shall provide business and legal advice and perform such other functions as the Chief Executive Officer and General
Counsel of A. O. Smith may from time to time reasonably request, specifically including advice on the following matters: 

  

	 	 a.
	 The establishment of a water heater manufacturing operation in India; 

  

	 	 b.
	 The termination of the Water Heater Industry Joint Research and Development Consortium; 

  

	 	 c.
	 The merger of the Gas Appliance Manufacturing Association with the Air Conditioning and Refrigeration Institute; 

  

	 	 d.
	 * and 

  

	 	 e.
	 Other legal activities as determined by the Chief Executive Officer or General Counsel. 

 Consultant shall not perform consulting services under this Consulting Agreement at a level which is 50% or more of the average level of
services performed by Consultant as the General Counsel for A. O. Smith during the 36 month period prior to his retirement on July 15, 2007. 
 Consultant shall provide periodic reports on the status of his activities as requested by A. O. Smith. In performing his services under this Agreement, Consultant shall exercise the degree of skill and care observed
by professional consultants performing the same or similar services. 
  
  

	 *
	 Indicates that material has been omitted and confidential treatment has been requested therefor. All such omitted material has been filed separately with the
Securities and Exchange Commission pursuant to Rule 24b-2. 

  

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	2.	Term. The term of this Agreement shall be August 1, 2007 through December 31, 2008, unless terminated earlier under the provisions of Paragraph 6.

  

	3.	Compensation. A. O. Smith shall pay consultant at the rate of $23,640.00 per month commencing on August 1, 2007. Because Consultant is an independent contractor, there
shall be no income tax or FICA withheld from the fees due under the Agreement. 

  

	4.	Reimbursement of Expenses. During the term of this Agreement and upon submission of proper documentation, A. O. Smith shall reimburse Consultant for reasonable out-of-pocket
business expenses incurred by Consultant while performing consulting services pursuant to this Agreement. 

  

	5.	Independent Contractor. In rendering services under this Agreement, Consultant shall be an independent contractor, not an employee of A. O. Smith. Consultant shall be free to
control the manner in which the services are performed under this Agreement. 

  

	6.	Termination. A. O. Smith shall have the absolute right to terminate this Agreement, without notice, effective immediately upon Consultant’s breach of any material
provision of this Agreement. 

  

	7.	Death or Disability. If Consultant should become physically or mentally disabled, the payments provided under Section 3 shall continue to be made notwithstanding his
inability to perform consulting services due to his disability. In the event of Consultant’s death during the term of the Agreement, payments under Section 3 shall be made to his spouse or to his estate, if his spouse has predeceased him.

  

	8.	Confidential Information. Consultant agrees that he will not disclose to any person, firm or corporation any secret, confidential or proprietary information of A. O. Smith or
its affiliates, unless such information is in the public domain or is required to be disclosed by law. Such secret, confidential and proprietary information shall include, but not be limited to, such matters as A. O. Smith’s costs, profits,
markets, sales, pricing, product lines, policies, operational methods, suppliers, customers and strategic plans. 

  

	9.	Successors. Neither this Agreement nor any rights, duties or payments arising hereunder may be assigned, pledged or transferred by Consultant. 

  

	10.	Controlling Law. This Agreement shall in all respects be governed by, and construed in accordance with, the laws of the State of Wisconsin. 

  

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	11.	Severability. Any provision in this Agreement which is prohibited or unenforceable shall be ineffective without invalidating the remaining provisions of the Agreement.

  

	12.	Entire Agreement. This instrument sets forth the entire Agreement and undertaking between the parties relating to the subject contained in it and merges all prior
understandings, agreements and discussions between them. Neither party shall be bound by any representation, definition, condition or provision other than as expressly stated in this Agreement. 

 IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date first above written. 
  

									
	CONSULTANT	 		 	A. O. SMITH CORPORATION
					
	By	 	/s/ W. David Romoser	 		 	By	 	/s/ Mark A. Petrarca
		 	W. David Romoser	 		 	Title	 	SVP, Human Resource & Public Affairs

 Address: 
 11019 North Wyngate Trace 
 Mequon, WI 53092-5869 
  

 3Offer Letter to Paul W. Jones

 Exhibit 10.K 
 

 
 WORLD HEADQUARTERS 
 Human Resources & Public Affairs 
 P. O. Box 245008, Milwaukee, WI 53224-9508 
 Telephone: 414-359-4100 
 December 9, 2003
 
 UPS OVERNIGHT  
 Mr. Paul Jones 
 12 Forest Gate Circle 
 Oak Brook, IL 60523 
 Dear Paul: 
 This letter amends my offer of employment letter to you dated November 25, 2003 (for the position of President and Chief Operating Officer of A. O. Smith Corporation) as follows: 

Paragraph 1 – Rewrite 
 “This letter will serve to confirm our offer of employment extended to you today for the position of President and Chief Operating Officer for A. O. Smith Corporation. As we discussed the reason for creating this
position and asking you to join A. O. Smith is to provide for an orderly succession plan for replacing Bob OToole as CEO when he retires. Your starting annual base salary will be $600,000. Other compensation and benefit items included in this offer
of employment are as follows:” (end of rewrite). 
 Paul, we are delighted with your decision to join A. O. Smith. I really believe
you’ll find the company, including its employees, culture and values a wonderful environment in which to work. I personally look forward to working with you in your new assignment. 
 See you on January 5, 2004 !! 
  

	
	 Very truly yours,

	
	 A. O. SMITH CORPORATION

	
	 /s/ Edward J. O’Connor

	 Edward J. O’Connor

	 Vice President

	 Human Resources & Public Affairs

 EJO/lb 
 Enclosures 

 

 
 WORLD HEADQUARTERS 
 Human Resources & Public Affairs 
 P. 0, Box 245008, Milwaukee, WI 53224-9508 
 Telephone: 414-359-4100 
 November 25, 2003

 UPS OVERNIGHT  
 Mr. Paul Jones 
 15943 Roseto Way 
 Naples, Florida 34110 
 Dear Paul: 
 This letter will serve to confirm our offer of employment extended to you today for the position of President and Chief Operating Officer for A. O. Smith Corporation. Your starting annual base
salary will be $550,000. Other compensation and benefit items included in this offer of employment are as follows: 
  

	 	 •
	 	 You will be a participant in the Company’s annual executive bonus plan. Payout under this plan is contingent upon the Company’s achieving targeted
goals. Bonus payouts under the Executive Plan for this level position can reach 125% of base salary and have averaged 101% since 1994. 

  

	 	 •
	 	 You will be a participant in the Company’s Executive Stock Option Plan. You will be eligible for a grant of approximately 44,000 shares of stock with a per
share option price equal to the fair market value of the stock on the date you begin employment. This grant has a value of $1,500,000 based on current market price. This stock option is a ten-year plan involving a one-year waiting period then a
trailing nine-year period to exercise. 

  

	 	 •
	 	 You will be a participant in the Executive Restricted Stock Award Program. This program is intended to assist the Executive to the required level of stock
ownership. Paul, with your start of employment, you will be awarded 25,000 shares of A. O. Smith stock under the Restricted Stock Award program. These shares vest one-third each year over three years (i.e., at the end of the first year, you will
vest in 8,333 shares). 

  

	 	 •
	 	 You will be provided with a Company car. 

  

	 	 •
	 	 You will be eligible for the Company’s financial counseling program for executives which includes assistance in tax planning and preparation.

	 	•	 	 The Company will pay the fees and dues for membership in a club that is suitable for business use. As the dues are considered compensation for income tax purposes,
we will pay you additional salary at year-end to reimburse you for this imputed income. 

  

	 	•	 	 Our Executive Life Insurance program provides a minimum of three times your base annual salary while an active employee and one times final salary in insurance
during retirement. The Life Insurance program also provides a limited amount of funding for the Executive Supplemental Pension Plan. 

  

	 	•	 	 Travel Accident Insurance is three times your base annual salary. In addition, you will be given an option to purchase Supplemental Life Insurance for yourself and
Dependent Life Insurance for your spouse. 

  

	 	•	 	 The A. O. Smith Health Protection Plan is a Preferred Provider Option (PPO) which pays between 80 to 85% of the normal cost of health care depending on the plan
option selected. Our 85% coverage plan (Plan A) requires a $165/month before tax contribution for employee and dependent coverage. Coverage is effective the first day of employment. 

  

	 	•	 	 Income Protection, if disabled, is six months full Salary Continuation, followed by Long-Term Disability which is 66 & 2/3% if base salary.

  

	 	•	 	 Dental Insurance is effective on your first day of employment and requires a $19.50 per month before tax contribution for employee and dependent coverage.

  

	 	•	 	 Your vacation eligibility, starting in 2004, will be four (4) weeks. 

  

	 	•	 	 We enjoy ten paid holidays at World Headquarters. 

  

	 	•	 	 We offer a Profit Sharing retirement Plan to salaried employees. You may invest from 1% to 16% (13% for highly compensated) in a choice of seven diverse investment
funds. The Company match is a guaranteed $.35 on the dollar on the first 6% of your income and could reach an additional $1.05 on the dollar, depending on A. O. Smith’s earnings for the year. 

  

	 	•	 	 The A. O. Smith Pension Plan is paid for by the Company and offers retirement benefits based on salary history and length of service. Vesting in the Pension Plan is
five years. 

  

 - 2 - 

	 	•	 	 You are eligible for an annual Executive physical. 

  

	 	•	 	 You are eligible for tuition refund for prior approved courses. 

 Paul, we can discuss your relocation plans from the Chicago area to Milwaukee. If there is a need for a temporary living period in advance of your spouse’s relocation, the Company will work with you to tailor a
program that helps cover your added costs. 
 Following any temporary living period that may be required and commensurate with your spouse’s move to
Milwaukee, the following are the key elements of the Company’s moving and relocation program: 
  

	 	•	 	 You will be offered the services of a local relocation assistance service. 

  

	 	•	 	 You will receive a relocation allowance of two months’ salary intended to cover incidental expenses of the move. 

  

	 	•	 	 Travel expense for you and your spouse is covered on your move to Milwaukee. 

  

	 	•	 	 The costs associated with moving your household furnishings and personal property, including insurance and in-transit storage for up to 180 days are covered, if you
reside in temporary quarters awaiting possession of a house or an apartment. 

  

	 	•	 	 You are eligible for A. O. Smith’s Home Purchase Program, provided you purchase a new residence within six months of your move to Milwaukee. Our contractor
will make an offer on your home based on the average of two market value appraisals. You have 60 days to accept the offer and if you do, the contractor will cover all the attendant costs of selling your home. If you find a buyer who offers more than
the contractor, you may assign the buyer to the contractor to take care of the attendant costs and closing procedure. If this buyer’s offer is greater than the contractor’s, you will receive the higher amount. 

 

	 	•	 	 If you elect to sell your own home, you may receive reimbursement for the real estate commission charged by the Broker. 

  

	 	•	 	 You are eligible for mortgage interest differential allowance (MIDA), if your new interest rate is higher than your old rate. 

  

 - 3 - 

	 	•	 	 If you are reimbursed for home purchase, real estate commission, MIDA or moving allowance, you must sign an agreement stating that you will reimburse the Company
for the costs of the benefit if you voluntarily terminate employment with the Company within 365 days. 

 I am also enclosing an
information brochure on Salaried Benefit Plans which offers more detail on these programs. 
 Paul, a special severance provision is included in this
employment offer in the unlikely case that it would be necessary. The severance benefit would be applicable in the event of your termination by the Company except if such termination is “for cause” (i.e. dishonesty, insubordination, etc.).
Under this severance benefit the Company will extend both your salary and insurance benefits for a period of eighteen (18) months following the date of termination. 
 Paul, a substance abuse test is a requirement of employment with A. O. Smith. Please contact Ellen Luby, Manager, Corporate Human Resources, (414) 359-4131 to assist you in arranging this procedure. 

As we discussed, the Company will additionally include a $50,000 employment bonus (payable following your start of employment) in recognition of your terminating a
current Board assignment. 
 After you have had a chance to review this letter, please give me a call and we can cover further details. Paul, we are
delighted to be in a position to offer you this opportunity to join our Company and if there is anything we can do to help in your decision making, please don’t hesitate to ask. 
  

	
	Very truly yours,
	
	A. O. SMITH CORPORATION
	
	/s/ Edward J. O’Connor
	Edward J. O’Connor
	 Vice President
 Human Resource & Public Affairs

 EJO/lb 
 Enclosures 
  

 - 4 -

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