Document:

EXHIBIT 10.E.1

 

Exhibit 10-e-1

ROCKWELL AUTOMATION, INC.

2000 LONG-TERM INCENTIVES PLAN

(As Amended through February 4, 2004)

Section 1: Purpose

The purpose of the Plan is to promote the interests of the Corporation (as
defined in Section 2) and its shareowners by providing incentive compensation
opportunities to assist in (i) attracting, motivating and retaining Employees
(as defined in Section 2) and (ii) aligning the interests of Employees
participating in the Plan with the interests of the Corporation’s shareowners.

Section 2: Definitions

As used in the Plan, the following terms shall have the respective meanings
specified below.

	 	a.	 	“Award” means an award granted pursuant to Section 4.
	 
	 	b.	 	“Award Agreement” means a document described in Section 6
setting forth the terms and conditions applicable to the Award
granted to the Participant.
	 
	 	c.	 	“Board of Directors” means the Board of Directors of the
Corporation, as it may be comprised from time to time.
	 
	 	d.	 	“Change of Control” means any of the following:

	 	(i)	 	The acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) (a “Person”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 20%
or more of either (A) the then outstanding shares of common stock
of the Corporation (the “Outstanding Rockwell Common Stock”) or
(B) the combined voting power of the then outstanding voting
securities of the Corporation entitled to vote generally in the
election of directors (the “Outstanding Rockwell Voting
Securities”); provided, however, that for purposes of this
subparagraph (i), the following acquisitions shall not constitute
a Change of Control: (w) any acquisition directly from the
Corporation, (x) any acquisition by the Corporation, (y) any
acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Corporation or any corporation
controlled by the Corporation or (z) any acquisition pursuant to
a transaction which complies with clauses (A), (B) and (C) of
subsection (iii) of this Section 2(d); or
	 
	 	(ii)	 	Individuals who, as of December 1, 1999, constitute the
Board of Directors (the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board of Directors;
provided, however, that any individual becoming a director
subsequent to that date whose election, or nomination for
election by the Corporation’s shareowners, was approved by a vote
of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest
with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board of Directors; or
	 
	 	(iii)	 	Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or
substantially all of the assets of the Corporation or the

 

 

	 	 	 	acquisition of assets of another entity (a “Corporate
Transaction”), in each case, unless, following such Corporate
Transaction, (A) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the
Outstanding Rockwell Common Stock and Outstanding Rockwell Voting
Securities immediately prior to such Corporate Transaction
beneficially own, directly or indirectly, more than 60% of,
respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the
case may be, of the corporation resulting from such Corporate
Transaction (including, without limitation, a corporation which as
a result of such transaction owns the Corporation or all or
substantially all of the Corporation’s assets either directly or
through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Corporate
Transaction, of the Outstanding Rockwell Common Stock and
Outstanding Rockwell Voting Securities, as the case may be, (B) no
Person (excluding any employee benefit plan (or related trust) of
the Corporation or such corporation resulting from such Corporate
Transaction) beneficially owns, directly or indirectly, 20% or more
of, respectively, the then outstanding shares of common stock of
the corporation resulting from such Corporate Transaction or the
combined voting power of the then outstanding voting securities of
such corporation except to the extent that such ownership existed
prior to the Corporate Transaction and (C) at least a majority of
the members of the board of directors of the corporation resulting
from such Corporate Transaction were members of the Incumbent Board
at the time of the execution of the initial agreement, or of the
action of the Board of Directors, providing for such Corporate
Transaction; or
	 
	 	(iv)	 	Approval by the Corporation’s shareowners of a complete
liquidation or dissolution of the Corporation.

	 	e.	 	“Code” means the Internal Revenue Code of 1986, as amended
from time to time.
	 
	 	f.	 	“Committee” means the Compensation and Management Development
Committee of the Board of Directors, as it may be comprised from
time to time.
	 
	 	g.	 	“Corporation” means Rockwell Automation, Inc. and any
successor thereto.
	 
	 	h.	 	“Covered Employee” means a covered employee within the
meaning of Code Section 162(m)(3).
	 
	 	i.	 	“Dividend Equivalent” means an amount equal to the amount of
cash dividends payable with respect to a share of Stock after the
date specified in an Award Agreement with respect to an Award
settled in Stock or an Award of Restricted Stock.
	 
	 	j.	 	“Employee” means an individual who is an employee or a leased
employee of, or a consultant to, the Corporation or a Subsidiary,
but excludes members of the Board of Directors who are not also
employees of the Corporation or a Subsidiary.
	 
	 	k.	 	“Exchange Act” means the Securities Exchange Act of 1934, and
any successor statute, as it may be amended from time to time.
	 
	 	l.	 	“Executive Officer” means an Employee who is an executive
officer of the Corporation as defined in Rule 3b-7 under the
Exchange Act as it may be amended from time to time.

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	 	m.	 	“Fair Market Value” means the closing sale price of the Stock
as reported in the New York Stock Exchange—Composite Transactions
(or if the Stock is not then traded on the New York Stock Exchange,
the closing sale price of the Stock on the stock exchange or
over-the-counter market on which the Stock is principally trading on
the relevant date) on the date of a determination (or on the next
preceding day the Stock was traded if it was not traded on the date
of a determination).
	 
	 	n.	 	“Incentive Stock Option” means an Option (or an option to
purchase Stock granted pursuant to any other plan of the Corporation
or a Subsidiary) intended to comply with Code Section 422.
	 
	 	o.	 	“Non-Qualified Stock Option” means an Option that is not an
Incentive Stock Option.
	 
	 	p.	 	“Option” means an option to purchase Stock granted pursuant
to Section 4(a).
	 
	 	q.	 	“Participant” means (i) Any Employee who has been granted an
Award; (ii) any Employee (a Continuing Rockwell Collins Participant)
as of the opening of business on the Rockwell Collins Distribution
Date who then held one or more outstanding Awards and who on or
before the close of business on the Rockwell Collins Distribution
Date remained or became an employee of Rockwell Collins or any of
its subsidiaries, but only for purposes of determining such an
Employee’s rights with respect to his or her outstanding Awards and
only so long as such an Employee shall remain an employee of
Rockwell Collins or any of its subsidiaries; and (iii) any Employee
(a Continuing Rockwell Science Center Participant) as of the opening
of business on the Rockwell Collins Distribution Date who then held
one or more outstanding Awards and who on or before the close of
business on the Rockwell Collins Distribution Date remained or
became an employee of Rockwell Science Center or any of its
subsidiaries, but only for purposes of determining such an
Employee’s rights with respect to his or her outstanding Awards and
only so long as such an Employee shall remain an employee of
Rockwell Science Center or any of its subsidiaries.
	 
	 	r.	 	“Performance Goal” means the level of performance, whether
absolute or relative to a peer group or index, established by the
Committee as the performance goal with respect to a Performance
Measure. Performance Goals may vary from Performance Period to
Performance Period and from Participant to Participant and may be
established on a stand-alone basis, in tandem or in the alternative.
	 
	 	s.	 	“Performance Formula” means, for a Performance Period, one or
more objective formulas or standards established by the Committee
for purposes of determining whether or the extent to which an Award
has been earned based on the level of performance attained with
respect to one or more Performance Goals. Performance Formulas may
vary from Performance Period to Performance Period and from
Participant to Participant and may be established on a stand-alone
basis, in tandem or in the alternative.
	 
	 	t.	 	“Performance Measure” means one or more of the following
selected by the Committee to measure the performance of the
Corporation, a business unit (which may but need not be a
Subsidiary) of the Corporation or both for a Performance Period:
basic or diluted earnings per share; revenue; operating income;
earnings before or after interest, taxes, depreciation or
amortization; return on capital; return on equity; return on assets;
cash flow; working capital; stock price and total shareholder
return. Each such measure shall be determined in accordance with
generally accepted accounting principles as consistently applied by
the Corporation

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	 	 	 	and, if so determined by the Committee at the time the Award is
granted and to the extent permitted under Code Section 162(m),
adjusted to omit the effects of extraordinary items, gain or loss on
the disposal of a business segment, unusual or infrequently occurring
events and transactions and cumulative effects of changes in
accounting principles. Performance Measures may vary from Performance
Period to Performance Period and from Participant to Participant and
may be established on a stand-alone basis, in tandem or in the
alternative.
	 
	 	u.	 	“Performance Period” means one or more periods of time (of
not less than one fiscal year of the Corporation), as the Committee
may designate, over which the attainment of one or more Performance
Goals will be measured for the purpose of determining a
Participant’s rights in respect of an Award.
	 
	 	v.	 	“Plan” means this 2000 Long-Term Incentives Plan as adopted
by the Corporation and in effect from time to time.
	 
	 	w.	 	“Rockwell Collins” means Rockwell Collins, Inc., a Delaware
corporation, and any successor thereto.
	 
	 	x.	 	“Rockwell Collins Distribution Date” means the Distribution
Date as defined in the Distribution Agreement, dated as of June 29,
2001, by and among Rockwell, Rockwell Collins and Rockwell Science
Center relating, among other things, to the distribution of shares
of Rockwell Collins Common Stock to Rockwell’s shareowners.
	 
	 	y.	 	“Rockwell Science Center” means Rockwell Scientific Company
LLC, a Delaware limited liability company, and any successor
thereto.
	 
	 	z.	 	“SAR” means a stock appreciation right granted pursuant to
Section 4(b).
	 
	 	aa.	 	“Stock” means shares of Common Stock, par value $1 per share,
of the Corporation or any security of the Corporation issued in
substitution, exchange or lieu thereof.
	 
	 	bb.	 	“Subsidiary” means (i) any corporation or other entity in
which the Corporation, directly or indirectly, controls 50% or more
of the total combined voting power of such corporation or other
entity and (ii) any corporation or other entity in which the
Corporation has a significant equity interest and which the
Committee has determined to be considered a Subsidiary for purposes
of the Plan.

Section 3: Eligibility

The Committee may grant one or more Awards to any Employee designated by it to
receive an Award.

Section 4: Awards

The Committee may grant any one or more of the following types of Awards, and
any such Award may be granted by itself, together with another Award that is
linked and alternative to the Award with which it is granted or together with
another Award that is independent of the Award with which it is granted:

	 	a.	 	Options. An Option is an option to purchase a specific number
of shares of Stock exercisable at such time or times and subject to
such terms and conditions as the Committee may determine consistent
with the provisions of the Plan, including the following:

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	 	(i)	 	The exercise price of an Option shall not be less than
100% of the Fair Market Value of the Stock on the date the Option
is granted, and no Option may be exercisable more than 10 years
after the date the Option is granted.
	 
	 	(ii)	 	The exercise price of an Option shall be paid in cash
or, at the discretion of the Committee, in Stock or in a
combination of cash and Stock. Any Stock accepted in payment of
the exercise price of an Option shall be valued at its Fair
Market Value on the date of exercise.
	 
	 	(iii)	 	No fractional shares of Stock will be issued or
accepted. The Committee may impose such other conditions,
restrictions and contingencies with respect to shares of Stock
delivered pursuant to the exercise of an Option as it deems
desirable.
	 
	 	(iv)	 	Incentive Stock Options shall be subject to the
following additional provisions:

	 	A.	 	No grant of Incentive Stock Options to any one
Employee shall cover a number of shares of Stock whose
aggregate Fair Market Value (determined on the date the Option
is granted), together with the aggregate Fair Market Value
(determined on the respective date of grant of any Incentive
Stock Option) of the shares of Stock covered by any Incentive
Stock Options which have been previously granted under the
Plan or any other plan of the Corporation or any Subsidiary
and which are exercisable for the first time during the same
calendar year, exceeds $100,000 (or such other amount as may
be fixed as the maximum amount permitted by Code Section
422(d)).
	 
	 	B.	 	No Incentive Stock Option may be granted under
the Plan after November 30, 2009.
	 
	 	C.	 	No Incentive Stock Option may be granted to an
Employee who on the date of grant is not an employee of the
Corporation or a corporation that is a subsidiary of the
Corporation within the meaning of Code Section 424(f).

	 	b.	 	Stock Appreciation Rights (SARs). A SAR is the right to
receive a payment measured by the increase in the Fair Market Value
of a specified number of shares of Stock from the date of grant of
the SAR to the date on which the Participant exercises the SAR.
SARs may be (i) freestanding SARs or (ii) tandem SARs granted in
conjunction with an Option, either at the time of grant of the
Option or at a later date, and exercisable at the Participant’s
election instead of all or any part of the related Option. The
payment to which the Participant is entitled on exercise of a SAR
may be in cash, in Stock valued at Fair Market Value on the date of
exercise or partly in cash and partly in Stock, as the Committee may
determine.
	 
	 	c.	 	Restricted Stock. Restricted Stock is Stock that is issued to
a Participant subject to restrictions on transfer and such other
restrictions on incidents of ownership as the Committee may
determine, including but not limited to the achievement of one or
more specific goals with respect to performance of the Corporation,
a business unit (which may but need not be a Subsidiary) of the
Corporation or that Participant over a specified period of time.
Subject to the specified restrictions, the Participant as owner of
those shares of Restricted Stock shall have the rights of the holder
thereof, except that the Committee may provide at the time of the
Award that any dividends or other distributions paid with respect to
that Stock while subject to those restrictions shall be accumulated,
with or without interest, or reinvested in Stock and held subject to
the same restrictions as the Restricted Stock and such other terms
and conditions as the Committee shall determine. Shares of
Restricted Stock shall be registered in the name of the Participant
and, at the Corporation’s sole discretion, shall be held in

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	 	 	 	book entry form subject to the Corporation’s instructions or shall be
evidenced by a certificate, which shall bear an appropriate
restrictive legend, shall be subject to appropriate stop-transfer
orders and shall be held in custody by the Corporation until the
restrictions on those shares of Restricted Stock lapse.
	 
	 	d.	 	Performance Units. A Performance Unit is an Award denominated
in cash, the amount of which may be based on the achievement of one
or more specific goals with respect to performance of the
Corporation, a business unit (which may but need not be a
Subsidiary) of the Corporation or the Participant to whom the
Performance Units are granted over a specified period of time. The
maximum amount of compensation that may be paid to any one
Participant with respect to Performance Units for any one
Performance Period shall be $5 million. The payout of Performance
Units may be in cash, in Stock, valued at Fair Market Value on the
payout date (or at the sole discretion of the Committee, the day
immediately preceding that date), or partly in cash and partly in
Stock, as the Committee may determine.
	 
	 	e.	 	Stock Purchase Awards. A Stock Purchase Award is the right to
purchase, with a loan from the Corporation, a specific number of shares of Stock at their Fair Market Value on the date of such
purchase, subject to such terms and conditions as the Committee may
determine consistent with the Plan. Each such loan shall be
evidenced by the Participant’s promissory note, which shall (i) be
payable to the Corporation as determined by the Committee, (ii) be
secured by a pledge of the Stock purchased with the loan, (iii) be
recourse with respect to the Participant and (iv) bear interest at a
rate, established by the Committee, not less than required to avoid
the imputation of income under the Code. The Committee may forgive
all or part of such loan on such terms as the Committee may
determine, including but not limited to the achievement of one or
more specific goals with respect to performance of the Corporation,
a business unit (which may but need not be a Subsidiary) of the
Corporation or the Participant over a specified period of time.
	 
	 	f.	 	Performance Compensation Awards.

	 	(i)	 	The Committee may, at the time of grant of an Award
(other than an Option or SAR) designate such Award as a
Performance Compensation Award in order that such Award
constitute qualified performance-based compensation under Code
Section 162(m); provided, however, that no Performance
Compensation Award may be granted to an Employee who on the date
of grant is a leased employee of, or a consultant to, the
Corporation or a Subsidiary. With respect to each such
Performance Compensation Award, the Committee shall (on or before
the 90th day of the applicable Performance Period), establish, in
writing, a Performance Period, Performance Measure(s),
Performance Goal(s) and Performance Formula(s). Once established
for a Performance Period, such items shall not be amended or
otherwise modified if and to the extent such amendment or
modification would cause the compensation payable pursuant to the
Award to fail to constitute qualified performance-based
compensation under Code Section 162(m).
	 
	 	(ii)	 	A Participant shall be eligible to receive payment in
respect of a Performance Compensation Award only to the extent
that the Performance Goal(s) for that Award are achieved and the
Performance Formula as applied against such Performance Goal(s)
determines that all or some portion of such Participant’s Award
has been earned for the Performance Period. As soon as
practicable after the close of each Performance Period, the
Committee shall review and determine whether, and to what extent,
the Performance Goal(s) for the Performance

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	 	 	 	Period have been achieved and, if so, determine the amount of the
Performance Compensation Award earned by the Participant for such
Performance Period based upon such Participant’s Performance
Formula. The Committee shall then determine the actual amount of
the Performance Compensation Award to be paid to the Participant
and, in so doing, may in its sole discretion decrease, but not
increase, the amount of the Award otherwise payable to the
Participant based upon such performance. The maximum Performance
Compensation Award for any one Participant for any one Performance
Period shall be determined in accordance with Sections 4(d) and
5(b), as applicable.

	 	g.	 	Deferrals. The Committee may require or permit Participants
to defer the issuance or vesting of shares of Stock or the
settlement of Awards under such rules and procedures as it may
establish under the Plan. The Committee may also provide that
deferred settlements include the payment of, or crediting of
interest on, the deferral amounts or the payment or crediting of
Dividend Equivalents on deferred settlements in shares of Stock.
Notwithstanding the foregoing, no deferral will be permitted if it
will result in the Plan becoming an “employee pension benefit plan”
under Section 3(2) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), that is not otherwise exempt under
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

Section 5: Stock Available under Plan

	 	a.	 	Subject to the adjustment provisions of Section 9, the number
of shares of Stock which may be delivered upon exercise of Options
or upon grant or in payment of other Awards under the Plan shall not
exceed 24 million, and the number of those shares which may be
delivered upon grant or in payment of all Awards other than Options
and SARs shall not exceed 4 million. In addition, (i) no more than
4 million shares of Stock shall be granted in the form of Restricted
Stock; (ii) Stock Purchase Awards shall be granted with respect to
no more than 4 million shares of Stock; and (iii) SARs shall be
granted with respect to no more than 100,000 shares of Stock. For
purposes of applying the limitations provided in this Section 5(a),
all shares of Stock with respect to the unexercised, undistributed
or unearned portion of any terminated or forfeited Award shall be
available for further Awards.
	 
	 	b.	 	Subject to the adjustment provisions of Section 9, no single
Participant shall receive, in any fiscal year of the Corporation,
Awards in the form of (i) Options with respect to more than that
number of shares of Stock determined by subtracting from 2,500,000
the number of shares of Stock with respect to which Options or
options to purchase Stock under any other plan of the Corporation or
a Subsidiary have been granted to such Participant during the
immediately preceding four fiscal years of the Corporation; (ii)
Restricted Stock for more than that number of shares of Stock
determined by subtracting from 1,000,000 the number of shares of
Stock granted as Restricted Stock or as restricted stock under any
other plan or program of the Corporation or a Subsidiary to such
Participant during the immediately preceding four fiscal years of
the Corporation; and (iii) a Stock Purchase Award with respect to
more than that number of shares of Stock determined by subtracting
from 1,000,000 the number of shares of Stock with respect to which
Stock Purchase Awards have been granted to such Participant during
the immediately preceding four fiscal years of the Corporation.
	 
	 	c.	 	The Stock that may be delivered on grant, exercise or
settlement of an Award under the Plan may be reacquired shares held
in treasury or authorized but unissued shares; provided, however,
that unless otherwise determined by the Committee,

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	 	 	 	shares of Stock which may be granted as Restricted Stock shall consist
only of reacquired shares.

Section 6: Award Agreements

Each Award under the Plan shall be evidenced by an Award Agreement. Each Award
Agreement shall set forth the terms and conditions applicable to the Award,
including but not limited to provisions for (i) the time at which the Award
becomes exercisable or otherwise vests; (ii) the treatment of the Award in the
event of the termination of a Participant’s status as an Employee and (iii) any
special provisions applicable in the event of an occurrence of a Change in
Control, as determined by the Committee consistent with the provisions of the
Plan.

Section 7: Amendment and Termination

The Board of Directors may at any time amend, suspend or terminate the Plan, in
whole or in part; provided, however, that, without the approval of the
shareowners of the Corporation, no such action shall (i) increase the number of
shares of Stock available for Awards as set forth in Section 5 (other than
adjustments pursuant to Section 9); or (ii) materially increase the benefits
accruing to Participants under the Plan or otherwise make any material revision
to the Plan, or otherwise be effective to the extent that such approval is
necessary to comply with any tax or regulatory requirement applicable to the
Plan, including applicable requirements of the New York Stock Exchange; and
provided, further, that subject to Section 9, no such action shall impair the
rights of any holder of an Award without the holder’s consent. The Committee
may, subject to the Plan, at any time alter or amend any or all Award
Agreements to the extent permitted by applicable law; provided, however, that
subject to Section 9, no such alteration or amendment shall impair the rights
of any holder of an Award without the holder’s consent. Notwithstanding the
foregoing, neither the Board of Directors nor the Committee shall (except
pursuant to Section 9) amend the Plan or any Award Agreement to reprice any
Option or SAR whose exercise price is above the then Fair Market Value of the
Stock subject to the Award, whether by decreasing the exercise price, canceling
the Award and granting a substitute Award, or otherwise.

Section 8: Administration

	 	a.	 	The Plan and all Awards shall be administered by the
Committee. The members of the Committee shall be designated by the
Board of Directors from among its members who are not eligible for
Awards under the Plan.
	 
	 	b.	 	Any member of the Committee who, at the time of any proposed
grant of one or more Awards, is not both an “outside director” as
defined for purposes of Code Section 162(m) and a “Non-Employee
Director” as defined in Rule 16b-3(b)(3)(i) under the Exchange Act
shall abstain from and take no part in the Committee’s action on the
proposed grant.
	 
	 	c.	 	The Committee shall have full and complete authority, in its
sole and absolute discretion, (i) to exercise all of the powers
granted to it under the Plan, (ii) to construe, interpret and
implement the Plan and any related document, (iii) to prescribe,
amend and rescind rules relating to the Plan, (iv) to make all
determinations necessary or advisable in administering the Plan, and
(v) to correct any defect, supply any omission and reconcile any
inconsistency in the Plan. The actions and determinations of the
Committee on all matters relating to the Plan and any Awards will be
final and conclusive. The Committee’s determinations under the Plan
need not be uniform and may be made by it selectively among
Employees who receive, or who are eligible to receive, Awards under
the Plan, whether or not such persons are similarly situated.

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	 	d.	 	The Committee and others to whom the Committee has delegated
such duties shall keep a record of all their proceedings and actions
and shall maintain all such books of account, records and other data
as shall be necessary for the proper administration of the Plan.
	 
	 	e.	 	The Corporation shall pay all reasonable expenses of
administering the Plan, including but not limited to the payment of
professional fees.
	 
	 	f.	 	It is the intent of the Corporation that this Plan and Awards
hereunder satisfy, and be interpreted in a manner that satisfy, (i)
in the case of Participants who are or may be Executive Officers,
the applicable requirements of Rule 16b-3 under the Exchange Act, so
that such persons will be entitled to the benefits of Rule 16b-3, or
other exemptive rules under Section 16 of the Exchange Act, and will
not be subjected to avoidable liability under Section 16(b) of the
Exchange Act; and (ii) in the case of Performance Compensation
Awards to Covered Employees, the applicable requirements of Code
Section 162(m). If any provision of this Plan or of any Award
Agreement would otherwise frustrate or conflict with the intent
expressed in this Section 8(f), that provision to the extent
possible shall be interpreted and deemed amended so as to avoid such
conflict. To the extent of any remaining irreconcilable conflict
with such intent, such provision shall be deemed void as to
Executive Officers or Covered Employees, as applicable.
	 
	 	g.	 	The Committee may appoint such accountants, counsel, and
other experts as it deems necessary or desirable in connection with
the administration of the Plan.
	 
	 	h.	 	The Committee may delegate, and revoke the delegation of, all
or any portion of its authority and powers to the Chief Executive
Officer of the Corporation, except that the Committee may not
delegate any discretionary authority with respect to substantive
decisions or functions regarding the Plan or Awards to the extent
inconsistent with the intent expressed in Section 8(f) or to the
extent prohibited by applicable law.

Section 9: Adjustment Provisions

	 	a.	 	In the event of any change in or affecting the outstanding shares of Stock by
reason of a stock dividend or split, merger or
consolidation (whether or not the Corporation is a surviving
corporation), recapitalization, reorganization, combination or
exchange of shares or other similar corporate changes or an
extraordinary dividend in cash, securities or other property, the
Board of Directors shall make or take such amendments to the Plan
and outstanding Awards and Award Agreements and such adjustments and
actions thereunder as it deems appropriate, in its sole discretion,
under the circumstances. Such amendments, adjustments and actions
may include, but are not limited to, changes in the number of shares
of Stock then remaining subject to the Plan, and the maximum number
of shares that may be granted or delivered to any single Participant
pursuant to the Plan, including those that are then covered by
outstanding Awards, or accelerating the vesting of outstanding
Awards.
	 
	 	b.	 	The existence of the Plan and the Awards granted hereunder
shall not affect or restrict in any way the right or power of the
Board of Directors or the shareowners of the Corporation to make or
authorize any adjustment, recapitalization, reorganization or other
change in the capital structure of its business, any merger or
consolidation of the Corporation, any issue of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Stock
or the rights thereof, the dissolution or liquidation of the
Corporation or any sale or transfer of all or any part of its assets
or business, or any other corporate act or proceeding.

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Section 10: Miscellaneous

	a.	 	Nonassignability. Except as otherwise provided by the
Committee, no Award shall be assignable or transferable except by
will or by the laws of descent and distribution.
	 
	b.	 	Other Payments or Awards. Nothing contained in the Plan shall
be deemed in any way to limit or restrict the Corporation or a
Subsidiary from making any award or payment to any person under any
other plan, arrangement or understanding, whether now existing or
hereafter in effect.
	 
	c.	 	Payments to Other Persons. If payments are legally required
to be made to any person other than the person to whom any amount is
made available under the Plan, payments shall be made accordingly.
Any such payment shall be a complete discharge of the liability
hereunder.
	 
	d.	 	Unfunded Plan. The Plan shall be unfunded. No provision of
the Plan or any Award Agreement shall require the Corporation or a
Subsidiary, for the purpose of satisfying any obligations under the
Plan, to purchase assets or place any assets in a trust or other
entity to which contributions are made or otherwise to segregate any
assets, nor shall the Corporation or a Subsidiary maintain separate
bank accounts, books, records or other evidence of the existence of
a segregated or separately maintained or administered fund for such
purposes. Participants shall have no rights under the Plan other
than as unsecured general creditors of the Corporation or a
Subsidiary, except that insofar as they may have become entitled to
payment of additional compensation by performance of services, they
shall have the same rights as other employees under generally
applicable law.
	 
	e.	 	Limits of Liability. Any liability of the Corporation or a
Subsidiary to any Participant with respect to an Award shall be
based solely upon contractual obligations created by the Plan and
the Award Agreement. Neither the Corporation or its Subsidiaries,
nor any member of the Board of Directors or of the Committee, nor
any other person participating in any determination of any question
under the Plan, or in the interpretation, administration or
application of the Plan, shall have any liability to any party for
any action taken, or not taken, in good faith under the Plan.
	 
	f.	 	Rights of Employees. Status as an eligible Employee shall not
be construed as a commitment that any Award shall be made under the
Plan to such eligible Employee or to eligible Employees generally.
Nothing contained in the Plan or in any Award Agreement shall confer
upon any Employee or Participant any right to continue in the employ
or other service of the Corporation or a Subsidiary or constitute
any contract or limit in any way the right of the Corporation or a
Subsidiary to change such person’s compensation or other benefits or
to terminate the employment or other service of such person with or
without cause. A transfer of an Employee from the Corporation to a
Subsidiary, or vice versa, or from one Subsidiary to another, and a
leave of absence, duly authorized by the Corporation, shall not be
deemed a termination of employment or other service.
	 
	g.	 	Rights as a Shareowner. A Participant shall have no rights as
a shareowner with respect to any Stock covered by an Award until the
date the Participant becomes the holder of record thereof. Except as
provided in Section 9, no adjustment shall be made for dividends or
other rights, unless the Award Agreement specifically requires such
adjustment.
	 
	h.	 	Withholding. Applicable taxes, to the extent required by law,
shall be withheld in respect of all Awards. A Participant may
satisfy the withholding obligation by paying

10

 

	 	 	the amount of any taxes in cash or, with the approval of the
Committee, shares of Stock may be delivered to the Corporation or
deducted from the payment to satisfy the obligation in full or in
part. The amount of the withholding and the number of shares of Stock
to be paid or deducted in satisfaction of the withholding requirement
shall be determined by the Committee with reference to the Fair Market
Value of the Stock when the withholding is required to be made;
provided, however, that the amount of withholding to be paid in
respect of Options exercised through the cashless method in which all
shares of Stock for which the Options are exercised are immediately
sold shall be determined by reference to the price at which said
shares are sold. The Corporation shall have no obligation to deliver
any Stock pursuant to the grant or settlement of any Award until it
has been reimbursed for all required withholding taxes.
	 
	i.	 	Section Headings. The section headings contained herein are
for the purpose of convenience only, and in the event of any
conflict, the text of the Plan, rather than the section headings,
shall control.
	 
	j.	 	Construction. In interpreting the Plan, the masculine gender
shall include the feminine, the neuter gender shall include the
masculine or feminine, and the singular shall include the plural
unless the context clearly indicates otherwise. Any reference to a
statutory provision or a rule under a statute shall be deemed a
reference to that provision or any successor provision unless the
context clearly indicates otherwise.
	 
	k.	 	Invalidity. If any term or provision contained herein or in
any Award Agreement shall to any extent be invalid or unenforceable,
such term or provision will be reformed so that it is valid, and
such invalidity or unenforceability shall not affect any other
provision or part thereof.
	 
	l.	 	Applicable Law. The Plan, the Award Agreements and all
actions taken hereunder or thereunder shall be governed by, and
construed in accordance with, the laws of the State of Delaware
without regard to the conflict of law principles thereof.
	 
	m.	 	Compliance with Laws. Notwithstanding anything contained
herein or in any Award Agreement to the contrary, the Corporation
shall not be required to sell, issue or deliver shares of Stock
hereunder or thereunder if the sale, issuance or delivery thereof
would constitute a violation by the Participant or the Corporation
of any provisions of any law or regulation of any governmental
authority or any national securities exchange; and as a condition of
any sale or issuance the Corporation may require such agreements or
undertakings, if any, as the Corporation may deem necessary or
advisable to assure compliance with any such law or regulation.
	 
	n.	 	Supplementary Plans. The Committee may authorize
Supplementary Plans applicable to Employees subject to the tax laws
of one or more countries other than the United States and providing
for the grant of Non-Qualified Stock Options, SARs or Restricted
Stock to such Employees on terms and conditions, consistent with the
Plan, determined by the Committee which may differ from the terms
and conditions of other Awards in those forms pursuant to the Plan
for the purpose of complying with the conditions for qualification
of Awards for favorable treatment under foreign tax laws.
Notwithstanding any other provision hereof, Options granted under
any Supplementary Plan shall include provisions that conform with
Sections 4(a)(i), (ii) and (iii); SARs granted under any
Supplementary Plan shall include provisions that conform with
Section 4(b); and Restricted Stock granted under any Supplementary
Plan shall include provisions that conform with Section 4(c).
	 
	o.	 	Effective Date and Term. The Plan was adopted by the Board of
Directors effective as of December 1, 1999, subject to approval by
the Corporation’s shareowners. The

11

 

	 	 	 	Committee may grant Awards prior to shareowner approval; provided,
however, that Awards granted prior to such shareowner approval shall
be automatically canceled if shareowner approval is not obtained on or
before November 30, 2000; and provided, further, that no Award may be
exercisable and no shares of Stock shall be delivered pursuant to the
Plan prior to the date shareowner approval is obtained. The Plan shall
remain in effect until all Awards under the Plan have been exercised
or terminated under the terms of the Plan and applicable Award
Agreements; provided, however, that Awards under the Plan may be
granted only within ten (10) years from the effective date of the
Plan.

12EX-10.I.1

 

Exhibit 10-i-1

ROCKWELL AUTOMATION, INC.

ANNUAL INCENTIVE COMPENSATION PLAN FOR

SENIOR EXECUTIVE OFFICERS

(as amended December 3, 2003)

1. Purposes.

     The purposes of the Annual Executive Compensation Plan for Senior
Executive Officers (the Plan) are to provide a reward and an incentive to the
Corporation’s Senior Executive Officers who have contributed and in the future
are likely to contribute to the success of the Corporation, to enhance the
Corporation’s ability to attract and retain outstanding persons to serve as its
Senior Executive Officers and to preserve for the Corporation the benefit of
federal income tax deductions with respect to annual incentive compensation
paid to Senior Executive Officers.

2. Definitions.

     (a) Applicable Net Earnings. For any fiscal year, the net income before
provision for domestic and foreign taxes based on income of the Corporation,
determined in accordance with generally accepted accounting principles.

     (b) Board of Directors. The Board of Directors of Rockwell.

     (c) Committee. The Compensation and Management Development Committee
designated by the Board of Directors from among its members who are not
eligible to receive an award under the Plan.

     (d) Corporation. Rockwell and its consolidated subsidiaries.

     (e) Covered Employees Performance Fund. An incentive compensation fund for
each fiscal year in which the Plan is applicable from which awards may be made
under the Plan, which shall be equal to 1% of the Applicable Net Earnings for
that fiscal year.

     (f) Rockwell. Rockwell Automation, Inc.

     (g) Senior Executive Officers. Rockwell’s chief executive officer on the
last day of each fiscal year and four other executive officers (as defined in
Rule 3b-7 under the Securities Exchange Act of 1934, as amended) which the
Committee shall designate on or before the last day of that fiscal year. No
member of the Corporation’s Board of Directors who is not also an employee of
the Corporation shall be eligible to participate in the Plan.

3. Determination of Applicable Net Earnings and Covered Employees Performance Fund; Allocation of Potential Awards.

     (a) After the end of each fiscal year, the independent certified public
accountants who audit the Corporation’s accounts shall compute the Applicable
Net Earnings and the amount of the

 

 

Covered Employees Performance Fund for that fiscal year. Those
computations shall be reported to the Board of Directors and the Committee.

     (b) There shall be allocated from the Covered Employees Performance Fund
for each fiscal year potential awards to each of the Senior Executive Officers
equal to the following respective percentages of the Covered Employees
Performance Fund for that fiscal year:

	 	 	 
	

	 	Chief Executive Officer-35%;
	

	 	President and Chief Operating Officer-20%;
	

	 	Other Senior Executive Officers-15%;

4. Awards.

     (a) After the computations, reports and allocations prescribed under
Section 3(a) have been made, the Committee shall determine, in its discretion,
the amounts, if any, allocated to the Senior Executive Officers pursuant to
Section 3(b) to be awarded from the Covered Employees Performance Fund for that
fiscal year; and the form, terms and conditions of awards, including whether
and to what extent awards shall be paid in installments.

     (b) Without limiting the generality of Section 4(a) the Committee may, in
its sole discretion, reduce the amount of any award made to any Senior
Executive Officer from the potential award allocated to that Officer under
Section 3(b), taking into account such factors as it deems relevant, including,
without limitation: (i) the Applicable Net Income; (ii) other significant
financial or strategic achievements during the year; (iii) its subjective
assessment of each Senior Executive Officer’s overall performance for the year;
and (iv) information about compensation practices at other peer group companies
for the purpose of evaluating competitive compensation levels so that the
Committee may determine that the amount of the annual incentive award is within
the targeted competitive compensation range of the Corporation’s executive
compensation program. The Committee shall determine the amount of any reduction
in a Senior Executive Officer’s award on the basis of the foregoing and other
factors it deems relevant and shall not be required to establish any allocation
or weighting formula with respect to the factors it considers. In no event
shall any Senior Executive Officer’s award under the Plan exceed the amount of
the Covered Employees Performance Fund allocated to a potential award to that
Senior Executive Officer.

     (c) The Committee shall have no obligation to disburse the full amount of
the Covered Employees Performance Fund for any fiscal year. Amounts allocated
but not actually awarded to a Senior Executive Officer may not be re-allocated
to other Senior Executive Officers or utilized for awards in respect of other
years.

     (d) Not more than 10% of the aggregate amount of incentive awards to be
awarded for any fiscal year, as approved by the Committee, including under this
Plan, shall be awarded to any one person nor more than 50% to the ten persons
receiving the highest awards, including awards under this Plan.

     (e) The Corporation shall promptly notify each person to whom an award has
been made and pay the award in accordance with the determinations of the
Committee.

2

 

     (f) A cash award may be made with respect to a Senior Executive Officer
who has died. Any such award shall be paid to the legal representative or
representatives of the estate of such Officer.

     (g) No person who is eligible for an award under the Plan for any fiscal
year of the Corporation shall be eligible for an award under any other
management incentive compensation plan of any of the Corporation’s businesses
for that fiscal year.

5. Finality of Determinations.

     The Committee shall have the power to administer and interpret the Plan.
All determinations, interpretations and actions of the Committee and all
actions of the Board of Directors under or in connection with the Plan shall be
final, conclusive and binding upon all concerned.

6. Amendment of the Plan.

     The Board of Directors and the Committee shall each have the power, in its
sole discretion, to amend, suspend or terminate the Plan at any time, except
that:

     (a) No such action shall adversely affect rights under an award already
made, without the consent of the person affected; and

     (b) Without approval of the shareowners of Rockwell, neither the Board of
Directors nor the Committee shall (1) so modify the method of determining the
Covered Employees Performance Fund as to increase materially the maximum amount
that may be allocated to it or (2) after the first 90 days of any fiscal year,
amend the plan in a manner that would, directly or indirectly: (i) change the
method of calculating the amount allocated to the Covered Employees Performance
Fund for that year; (ii) increase the maximum award payable to any Senior
Executive Officer for that year; or (iii) remove the amendment restriction set
forth in this sentence with respect to that year.

7. Miscellaneous.

     (a) The Corporation shall bear all expenses and costs in connection with
the operation of the Plan.

     (b) The Corporation, the Board of Directors, the Committee and the
officers of the Corporation shall be fully protected in relying in good faith
on the computations and reports made pursuant to or in connection with the Plan
by the independent certified public accountants who audit the Corporation’s
accounts.

8. Effective Date.

     Upon approval by the shareowners of Rockwell, the Plan shall become
effective as of October 1, 1995.

3

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