Document:

Exhibit 10.01

MUELLER WATER PRODUCTS, INC.

SUPPLEMENTAL DEFINED CONTRIBUTION PLAN

Effective April 1, 2007

Mueller Water Products, Inc.

Supplemental Defined Contribution Plan

Effective April 1, 2007

Purpose

The purpose of this Plan is to provide specified
benefits referred to in the Employment Agreement between Walter Industries,
Inc. and Gregory E. Hyland dated as of September 9, 2005, as amended, as
assumed by Mueller Water Products, Inc. as of December 14, 2006.  Mr. Hyland is considered part of a select
group of management or highly compensated employees who contribute materially
to the continued growth, development and future business success of Mueller
Water Products, Inc. and its subsidiaries and affiliates.  The Plan is intended to constitute an
unfunded plan of deferred compensation for a select group of management or
highly compensated employees.  As such,
the Plan is exempt from the application of Parts 2, 3 and 4 of Title I, and
from Title IV, of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), and is further exempt from certain ERISA reporting
requirements in accordance with Department of Labor Regulation §
2520.104-23.  The Plan is not intended to
be qualified under Section 401(a) of the Internal Revenue Code.

This Plan is intended to comply with the American Jobs
Creation Act of 2004 and Internal Revenue Code Section 409A and the rules and
regulations thereunder.  This Plan, and
any payment thereunder may be amended unilaterally by the Company at any time
through the period permitted for compliance by the Internal Revenue Service to
make changes in compliance with such laws and the guidance issued thereunder.

This Plan supersedes any prior agreement, arrangement
or understanding with respect to the benefits provided under this Plan.

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ARTICLE 1

Definitions

For purposes hereof, unless
otherwise clearly apparent from the context, the following phrases or terms
shall have the following indicated meanings:

1.1                               “Account
Balance” shall mean, with respect to a Participant, the Company
Contribution Account.

1.2                               “Beneficiary”
shall mean one or more persons, trusts, estates or other entities, designated
in accordance with Article 9, that are entitled to receive benefits under
the Plan upon the death of a Participant.

1.3                               “Beneficiary
Designation Form” shall mean the form established from time to time by the
Committee that a Participant completes, signs and returns to the Committee to
designate one or more Beneficiaries.

1.4                               “Board”
shall mean the board of directors of the Company.

1.5                               “Cause” shall mean Termination of
Employment, whether by or at the request of the Company, in connection with the
Participant’s (i) willful failure to perform his assigned duties, and his
failure to cure such failure within thirty days following written notice
thereof from the Company, or (ii) intentional engagement in dishonest or
illegal conduct in connection with his performance of his duties, or  conviction of a felony, or (iii) material
breach of the terms of his employment agreement, and failure to cure such
breach within thirty days following written notice thereof from the Company.

1.6                               “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated thereunder.

1.7                               “Committee”
shall mean the Compensation and Human Resources Committee of the Board.

1.8                               “Company”
shall mean Mueller Water Products, Inc. and any successor thereto.

1.9                               “Company Contribution Account” shall mean a
Participant’s Company Contribution Amount adjusted in accordance with Sections
3.1 and 3.4 of the Plan, net of all distributions from such account.  This account shall be a bookkeeping entry
only, maintained by the Company, and shall be utilized solely as a device for
the measurement and determination of the amount to be paid to the Participant
pursuant to the Plan.

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1.10                        “Company Contribution Amount” shall mean the
initial amount allocated to the Company Contribution Account in accordance with
Section 3.1(a) of the Plan and thereafter the monthly amount allocated to the
Company Contribution Account in accordance with Section 3.1(b) of the Plan.

1.11                        “Disability”
shall mean either that the Participant is (a) unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last of a continuous period of not less than 12 months, or (b) by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months, is receiving income replacement benefits for a period
of not less than 3 months under an accident and health plan covering employees
of the Corporation or its affiliates, or (c) determined to be totally disabled
by the United States Social Security Administration.

1.12                        “Disability
Benefit” shall mean a benefit set forth in Section 5.2.

1.13                        “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated thereunder.

1.14                        “Hardship” shall mean an  unforeseeable emergency that is caused by an
event beyond the control of the Participant that would result in severe
financial hardship to the Participant resulting from (a) a sudden and
unexpected illness or accident of the Participant or the spouse or a dependent
of the Participant (as defined in Code Section 152(a)), (b) 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, not
as a result of a natural disaster), or (c) such other extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant, all as determined in the sole discretion of the Plan
Administrator.  In addition, the need to
pay for medical expenses, including non-refundable deductibles, as well as for
the costs of prescription drug medication, or the need to pay for the funeral
expenses of a spouse or a dependent may also constitute a Hardship event.  The Plan Administrator shall determine
whether the circumstances presented by the Participant constitute an
unanticipated emergency.  Such
circumstances and the Plan Administrator’s determination will depend on the
facts of each case, but, in any case, payment may not be made to the extent
that such hardship is or may be relieved as described in Section 4.1(a) or
4.1(b).

1.15                        “Participant”
shall mean Gregory E. Hyland.

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1.16                        “Plan”
shall mean the “Mueller Water Products, Inc. Supplemental Defined Contribution
Plan”, which shall be evidenced by this instrument, as amended from time to
time.

1.17                        “Plan Administrator” shall mean the
Committee.

1.18                        “Plan Year”
shall mean the calendar year commencing each January 1 and ending on the next
following December 31; provided that the first Plan Year shall be from the
effective date, April 1, 2007, through December 31, 2007.

1.19                        “Specified Employee” shall mean a “key
employee” as defined for purposes of Code Section 416(i), without regard to
paragraph (5) thereof, of a service recipient any stock of which is publicly
traded on an established securities market or otherwise.  An employee is a Specified Employee if, at
any time during the preceding Plan Year, he or she is (a) one of the 50 (or, if
less, the greater of three or 10% of all employees) highest-paid officers of
the Company or any Affiliate having annual compensation greater than $135,000
(as adjusted under Code Section 415(d)); (b) a 5% owner of the Company or any
Affiliate; or (c) a 1% owner of the Company or any Affiliate having annual
compensation of more than $150,000.  If a
person is a Specified Employee as of December 31 of the preceding calendar
year, he or she is treated as a Specified Employee for the 12-month period
beginning on April 1 of the following calendar year.  For purposes of this Section 1.21, the term “compensation”
will be defined in accordance with Code Section 415(c)(3).  Whether an individual is a Specified Employee
will be determined in accordance with the requirements of Code Section 409A.

1.20                        “Termination
Benefit” shall mean the benefit set forth in Section 5.3.

1.21                        “Termination
of Employment” shall mean the severing of employment with the Company and
any Affiliate (determined without regard to Code Sections 414(m) and 414(o)),
voluntarily or involuntarily, for any reason. 
A Participant will not be deemed to have incurred a Termination of
Employment while he or she is on military leave, sick leave, or other bona fide
leave of absence (such as temporary employment by the government) if the period
of such leave does not exceed six months or such longer period as the
Participant’s right to reemployment with the Company is provided either by
statute or by contract.  If the period of
leave exceeds six months and the Participant’s right to reemployment is not
provided either by statute or by contract, the Termination of Employment will
be deemed to occur on the first date immediately following such six-month
period.  Whether a Participant incurs a
Termination of Employment with the Company will be determined in accordance
with the requirements of Code Section 409A.

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ARTICLE 2

Eligibility/Participation

2.1                               Eligibility;
Commencement of Participation.  In
carrying out the intent of the  
Employment Agreement between the Company and the Participant, and
superseding all prior understandings and agreements with respect to a
supplemental defined contribution benefit, the Participant shall commence
participation in the Plan upon the effective date of the Plan which is April 1,
2007.

2.2                               Change
of Employer.  If
the Participant is employed by any subsidiary or affiliate of the Company, the
Participant will be considered as employed by the Company for purposes of the
Plan.

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ARTICLE 3

Contributions/Vesting/Earnings Crediting

3.1                               Company
Contributions.  Company
Contribution Amounts will be credited to Participant’s Company Contribution
Account as follows:

(a)                                  as
of April 1, 2007, the amount of $193,652;

(b)                                 commencing
April 16, 2007 and as of the 16th day of each calendar month thereafter through
the earlier of (1) September 16, 2010 or (2) the Participant’s death,
Disability or Termination of Employment for any reason other than Cause, an
amount equal to 10% of the Participant’s then current base salary paid for the
monthly period from the 16th day of the prior calendar month through the 15th day of the current calendar month.  In the event of death, Disability or
Termination of Employment for any reason other than Cause, prior to September
16, 2010, a final credit for base salary through such event will be made as
soon as practicable following such event.

3.2                               Leave
of Absence.  If a Participant is
authorized by the Company for any reason to take a leave of absence from
employment on a paid or unpaid basis, the Participant shall continue to be
considered actively employed by the Company but no Company Contribution Amount
shall be made for any full month during which the Participant is on such
authorized leave of absence.

3.3                               Vesting.  A Participant shall be one hundred
percent (100%) vested in the amount credited to his Company Contribution
Account at all times.  Notwithstanding the foregoing, if a
Participant has a Termination of Employment for Cause, the Company Contribution
Account shall be forfeited in full.

3.4                               Value
of Account Balances.  In
accordance with, and subject to, the rules and procedures that are established
from time to time by the Committee, in its sole discretion, the value of a
Participant’s Account Balance at any time and from time to time up to the date
of payment shall be based upon the increase in the Account Balance determined
as of the 15th day of each month at a rate that is, on an
annualized basis, 120% of the applicable federal long-term rate, with
compounding on a monthly basis (as prescribed under Code Section 1274(d)).

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ARTICLE 4

Hardship Withdrawal Payouts

4.1                               Hardship
Distributions.  A Participant may
request that all or a portion of his vested Account Balance be distributed at
any time by submitting a written request to the Plan Administrator, provided
that the Participant has incurred a Hardship and the distribution is necessary
to alleviate such Hardship.  The Plan
Administrator shall deem a distribution to be necessary to alleviate a Hardship
if the distribution is not in excess of the amount of the Participant’s
Hardship, plus taxes reasonably anticipated as a result of the
distribution.  In determining whether the
Hardship distribution request should be approved, the Plan Administrator shall
be entitled to rely on the Participant’s representation that the Hardship
cannot be alleviated:

(a)                                  through
reimbursement or compensation by insurance or otherwise; or

(b)                                 by
reasonable liquidation of the Participant’s assets, to the extent such
liquidation would not itself cause a severe financial hardship.

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ARTICLE 5

Benefits

5.1                               Termination
Benefit.  If a Participant
experiences a Termination of Employment other than for Cause for any reason
other than death or Disability, the Participant shall receive a Termination
Benefit equal to his vested Account Balance paid in a lump sum cash amount,
less applicable tax withholdings, as soon as practicable but not later than
March 15 of the year following the year of the Termination of Employment.

5.2                               Disability
Benefits.  If a Participant’s
employment with the Company terminates by reason of Disability, then the
Participant shall receive a Disability Benefit equal to his Account Balance
paid in a lump sum cash amount, less applicable tax withholdings, as soon as
practicable following his Disability but not later than March 15 of the year
following the year of the Plan’s determination of Disability.

5.3                               Survivor
Benefit.  

(a)                                  If
a Participant dies while employed by the Company but before he otherwise has a
Termination of Employment, the Participant’s Beneficiary shall receive a
Survivor Benefit equal to the Participant’s Account Balance paid as if the
Company had terminated the employment of the Participant on the date of
death  and the Participant’s Beneficiary
will be paid in a lump sum cash amount as soon as practicable following the
Participant’s death.

(b)                                 If
a Participant dies after his Termination of Employment for any reason other
than for Cause and after payment of a lump sum under this Plan, the benefit
shall have been paid in full and the Participant’s Beneficiary shall not
receive any benefit.

5.4                               Payment
Subject to Compliance.  Payment
of any benefit under Section 5.1 or 5.2 are subject to delay under Section 7.1,
as applicable, and any other requirement for legal compliance.

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ARTICLE 6

Beneficiary Designation

6.1                               Beneficiary.  The Participant shall have the right, at
any time, to designate his Beneficiary (both primary as well as 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 in which the Participant
participates.

6.2                               Beneficiary
Designation; Change.  A
Participant shall designate his Beneficiary by completing and signing the
Beneficiary Designation Form, and returning it to the Vice President —
Compensation and Benefits or his or her designated agent.  A Participant shall have the right to change
a Beneficiary by completing, signing and otherwise complying with the terms of
the Beneficiary Designation Form and the rules and procedures established by
the Vice President — Compensation and Benefits, as in effect from time to
time.  Upon the acceptance by the Vice
President — Compensation and Benefits of a new Beneficiary Designation Form,
all Beneficiary designations previously filed shall be cancelled.  The Committee shall be entitled to rely on
the last Beneficiary Designation Form filed by the Participant and accepted
prior to his death.

6.3                               Acceptance.  No designation or change in designation of a
Beneficiary shall be effective until received, and accepted by the Vice
President — Compensation and Benefits or his or her designated agent.

6.4                               No
Beneficiary Designation.  If a
Participant fails to designate a Beneficiary as provided in Sections 6.1,
6.2 and 6.3 above, 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 shall be his
beneficiary designated under the basic group life insurance plan of the Company
or, in the absence of such beneficiary designation, his estate.

6.5                               Doubt
as to Beneficiary.  If the
Committee has any doubt as to the proper Beneficiary to receive payments
pursuant to this Plan, the Committee shall have the right, exercisable in its
sole and absolute discretion, to cause the Company to withhold such payments
until this matter is resolved to the Committee’s satisfaction.

6.6                               Discharge
of Obligations.  The payment of
benefits under the Plan to a Beneficiary shall fully and completely discharge
the Company and each of its subsidiaries and affiliates and the Committee from
all further obligations under this Plan with respect to the Participant.

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ARTICLE 7

Terms of All Payments

7.1                               Delay
for Specified Employees. 
Notwithstanding any provision of the Plan to the contrary, to the extent
required by Code Section 409A, in the case of a Specified Employee who has a
Termination of Employment other than for Cause or a Termination of Employment
due to Disability, but not a Termination of Employment due to death, while any
stock of the Company or any affiliate is publicly traded on an established
securities market or otherwise, distribution of the Participant’s Account
Balance may not be made earlier than six months after the date of such
Termination of Employment (or if the Participant dies during such six month
period, earlier than the date of the Participant’s death).  Any amounts otherwise payable during such six
month period shall be retained in the Participant’s Account Balance in
accordance with Section 3.4 and shall be paid in a lump sum cash amount as soon
as practicable after the end of such period.

7.2                               Deferral
of Payment.  The Committee may
permit a Participant to defer the commencement of the Participant’s
distribution following Termination of Employment other than for Cause to a
later date by filing a written request with the Vice President-Compensation and
Benefits of the Company.  Such an election
shall not take effect until at least twelve months after the date on which it
is made and shall be effective only if (a) the election is filed with the Vice
President- Compensation and Benefits of the Company at least 12 months before
the Participant’s Termination of Employment other than for Cause; (b) the
election does not accelerate the timing or payment schedule of any
distribution; (c) the payment commencement date in the change election is not
less than five years after the date the distribution would otherwise have
commenced with respect to the Termination of Employment for reasons other than
for Cause, or Disability under Sections 5.1 or 5.2 without regard to such
election; and (d) the Vice President- Compensation and Benefits of the Company
approves such election.

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7.3                               Permitted
Acceleration of Payments. Notwithstanding the foregoing, the
distribution of a Participant’s Account Balance may be accelerated, with the
consent of the Plan Administrator, under the following circumstances:

(a)                                  To
permit payment to an individual other than the Participant as necessary to
comply with the provisions of a domestic relations order (as defined in Code
Section 414(p)(1)(B)) in accordance with Section 11.4 of the Plan;

(b)                                 To
permit payment as necessary to comply with the provisions of a certificate of
divestiture (as defined in Code Section 1043(b)(2));

(c)                                  To
permit payment of federal employment taxes under Code Sections 3101, 3121(a) or
3121(v)(2), or to comply with any federal tax withholding provisions or corresponding
withholding provisions of applicable state, local, or foreign tax laws as a
result of the payment of federal employment taxes, and to pay the additional
income tax at source on wages attributable to the pyramiding Code Section 3401
wages and taxes; or

(d)                                 Upon
a good faith, reasonable determination by the Plan Administrator, upon advice
of counsel, that the Plan fails to meet the requirements of Code Section 409A
and regulations thereunder.  Such payment
may not exceed the amount required to be included in income as a result of the
failure to comply with the requirements of Code Section 409A.

7.4                               Permitted
Delay in Payments. Distribution of a Participant’s Account Balance may
be delayed solely to the extent necessary under the following circumstances,
provided that payment is made as soon as possible after the reason for delay no
longer applies:

(a)                                  A
payment otherwise required to be made under the terms of the Plan may be
delayed upon the Plan Administrator’s determination that it is administratively
impracticable to make payment by the time set forth above or that making such
payment will jeopardize the solvency of the Company.

(b)                                 A
payment otherwise required to be made under the terms of the Plan may be
delayed upon the Plan Administrator’s determination that the calculation of the
amount of the payment is not administratively practicable due to events beyond
the control of the Company.

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(c)                                  If
the Company reasonably anticipates that any payment otherwise required to be
made under the terms of the Plan would otherwise not be compensation that is
deductible by the Company solely by reason of the limitation under Code Section
162(m), then such payment shall be delayed; provided, however, that such
payment shall be made at the earliest date at which the Company reasonably
anticipates that the deduction of the payment of the amount will not be limited
or eliminated by application of Code Section 162(m) or the calendar year in
which the Participant terminates employment.

(d)                                 A
payment otherwise required to be made under the terms of the Plan shall be
delayed if the Company reasonably anticipates that the making of the payment
will violate a term of a loan agreement to which the Company is a party, or
other similar contract to which the Company is a party, and such violation will
cause material harm to the Company; provided, however, that the payment shall
be made at the earliest date at which the Company reasonably anticipates that
the making of the payment will not cause such violation, or such violation will
not cause material harm to the Company.

(e)                                  A
payment otherwise required to be made under the terms of the Plan shall be
delayed where the Company reasonably anticipates that the making of the payment
will violate Federal securities laws or other applicable law; provided,
however, that the payment shall be made at the earliest date at which the
Company reasonably anticipates that the making of the payment will not cause
such violation.

(f)                                    A
payment otherwise required to be made under the terms of the Plan may be
delayed upon such other events and conditions as the Commissioner may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin.

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ARTICLE 8

Termination, Amendment or Modification

8.1                               Termination.  The Board reserves the right to terminate the
Plan at any time.  Upon the termination
of the Plan, a Participant’s Account Balance shall be maintained and paid in
accordance with the terms of the Plan but no new Company Contribution Amounts
of any kind will be permitted. Notwithstanding the foregoing, earlier payment
following termination of the Plan shall be permitted in accordance with Code
Section 409A and the rules and regulations thereunder. Upon the payment of the
last amount from any  Account Balance,
the Plan will be closed.

8.2                               Amendment.  No amendment or termination of the Plan shall
directly or indirectly deprive any current or former Participant or Beneficiary
of all or any portion of any Account Balance accrued and vested prior to the
effective date of such amendment or termination; provided, however, that the
Company may elect to accelerate payment of Participant’s Account Balance, with
the consent of the affected Participant, solely to the extent permitted under
Code Section 409A.

8.3                               Effect
of Payment.  The full payment of
the applicable benefit under Articles 4 or 5 of the Plan shall completely
discharge the Company, its subsidiaries and affiliates and the Committee for
all obligations to a Participant under this Plan.

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ARTICLE 9

Administration

9.1                               Committee
Duties.  This Plan shall be
administered by the Committee.  The
Committee shall also have the discretion and authority to make, amend,
interpret, and enforce all appropriate rules and regulations for the
administration of this Plan and decide or resolve any and all questions
including interpretations of this Plan, as may arise in connection with the
Plan.

9.2                               Agents.  In the administration of this Plan, the
Committee may, from time to time, employ or designate agents and delegate to
them such administrative duties as it sees fit and may from time to time
consult with counsel, actuaries, or accountants who may be counsel, actuaries
or accountants to the Company.

9.3                               Binding
Effect of Decisions.  The
decision or action of the Committee 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 shall be final and
conclusive and binding upon all persons having any interest in the Plan.  Benefits under the Plan shall be payable only
if the Committee determines in its sole discretion that a Participant is
entitled to them.

9.4                               Indemnity
of Committee.  The Company shall
indemnify and hold harmless the members of the Committee 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 or any of its members.

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ARTICLE
10

Claims Procedures

10..1                     Filing Of
A Claim For Benefits. If a Participant or Beneficiary (the “claimant”)
believes that he or she is entitled to benefits under the Plan which are not
paid to him or which are not being accrued for his benefit, the claimant shall
file a written claim therefore with the Committee.

10.2                        Notification
To Claimant Of Decision.  Within
90 days after receipt of a claim by the Committee (or within 180 days if
special circumstances require an extension of time), the Committee shall notify
the claimant of its decision with regard to the claim.  In the event of such special circumstances
requiring an extension of time, there shall be furnished to the claimant prior
to expiration of the initial 90-day period written notice of the extension, which
notice shall set forth the special circumstances and the date by which the
decision shall be furnished.  If such
claim shall be wholly or partially denied, notice thereof shall be in writing
and worded in a manner calculated to be understood by the claimant, and shall
set forth.

(a)                                  the
specific reason or reasons for the denial;

(b)                                 specific
reference to pertinent provisions of the Plan on which the denial is based;

(c)                                  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

(d)                                 an
explanation of the procedure for review of the denial and the time limits
applicable thereto, including a statement regarding a claimant’s right to bring
a civil action under ERISA section 502(a).

10.3                        Procedure
For Review.  Within 60 days
following receipt by the claimant of notice denying his or her claim, in whole
or in part, or, if such notice shall not be given, within 60 days following the
latest date on which such notice could have been timely given, the claimant
shall appeal denial of the claim by filing a written application for review
with the Committee.  Following such
request for review, the Committee shall fully and fairly review the decision
denying the claim.  Prior to the decision
of the Committee, the claimant shall be provided, on request and free of
charge, reasonable access to and copies of relevant documents and an
opportunity to submit issues and comments in writing.

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10.4                        Decision
on Review.  The decision on
review of a claim denied in whole or in part by the Plan Administrator shall be
made in the following manner:

(a)                                  Within
60 days following receipt by the Committee of the request for review (or within
120 days if special circumstances require an extension of time), the Committee
shall notify the claimant in writing of its decision with regard to the
claim.  In the event of such special
circumstances requiring an extension of time, written notice of the extension
shall be furnished to the claimant prior to the commencement of the extension.

(b)                                 With
respect to a claim that is denied in whole or in part, the decision on review
shall set forth specific reasons for the decision, shall be written in a manner
calculated to be understood by the claimant, and shall cite specific references
to the pertinent Plan provisions on which the decision is based and provide
that the claimant is entitled, on request and free of charge, reasonable access
to and copies of relevant documents.

The decision of the Committee shall be final and
conclusive.

10.5                        Action
By Authorized Representative Of Claimant.  All actions set forth in this Section 10 to
be taken by the claimant may likewise be taken by a representative of the
claimant duly authorized by the claimant to act in his or her behalf on such matters.  The Committee may require such evidence as
either may reasonably deem necessary or advisable of the authority to act of
any such representative.

10.6                        Effect
of Extensions.  In the event that
the Committee requests additional information necessary to determine the claim
or appeal from a claimant, the claimant shall have at least 45 days in which to
respond.  The period for making a benefit
determination or deciding an appeal, as the case may be, shall be tolled from
the date of the notification to the claimant of the request for additional
information until the date the claimant responds to such request or, if
earlier, the expiration of the deadline provided by the Committee.

10.7                        Disability
Claims.  If a claimant challenges
the determination of Disability under this Plan, then Section 10.2 shall be
read with “45” instead of “90” and “90” instead of “180” in the number of days
in such section, and Section 10.4 shall be read with “45” instead of “60” and “90”
instead of “120” days in such section.

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ARTICLE
10

Miscellaneous

11.1                        Unsecured
General Creditor.  Participants
and their Beneficiaries, heirs, successors and assigns shall have no legal or
equitable right, interest or claim in any property or assets of the Company,
its subsidiaries and affiliates.  Any and
all assets of the Company shall be, and remain, the general, unpledged and
unrestricted assets of the Company.  The
Company’s obligation under the Plan shall be merely that of an unfunded and
unsecured promise to pay money in the future with respect to the Participant.

11.2                        Company’s
Liability.  The Company’s
liability for the payment of benefits shall be defined only by the Plan.  The Company shall have no obligation to a
Participant under the Plan except as expressly provided in the Plan.

11.3                        FICA
and Other Taxes.  The Company
shall withhold an amount equal to the federal, state and local income taxes and
other amounts required by law to be withheld with respect to any amounts
deferred or benefits received under this Plan.

11.4                        Nonassignability;
Domestic Relations Orders.   No
interest of any person or entity in, or right to receive a benefit under, the
Plan shall be subject in any manner to sale, transfer, assignment, pledge,
levy, anticipation, attachment, garnishment, or other alienation or encumbrance
of any kind; nor may such interest or right to receive a benefit be taken,
either voluntarily or involuntarily, for the satisfaction of the debts of, or
other obligations or claims against, such person or entity, including claims
for alimony, support, separate maintenance and claims in bankruptcy
proceedings.  Notwithstanding the
foregoing, the Company shall comply with the terms of a domestic relations
order applicable to a Plan Participant’s vested interest in the Plan, provided
that such order does not require the payment of benefits in a manner or amount,
or at a time, inconsistent with the terms of the Plan.  The Company shall have no liability to any
Plan Participant or Beneficiary to the extent that an Account Balance is
reduced in accordance with the terms of a domestic relations order that the
Company applies in good faith.

11.5                        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.

11.6                        Not a
Contract of Employment.  No Plan
Participant or Beneficiary shall have any right to a benefit under the Plan
except in accordance with the terms

 17
 

 

of the Plan.  Nothing contained
in the Plan shall be construed as a contract of employment between the Company
and any Participant or to give any Participant the right to be retained in the
service of the Company.

11.7                        Furnishing
Information.  A Participant or
his Beneficiary will cooperate with the Committee by furnishing any and all
information requested by the Committee and take such other actions as may be
requested in order to facilitate the administration of the Plan and the
payments of benefits hereunder.

11.8                        Terms.  Whenever any words are used herein in the
singular or in the plural, they shall be construed as though they were used in
the plural or the singular, as the case may be, in all cases where they would
so apply.

11.9                        Captions.  The captions of the articles, sections and
paragraphs of this Plan are for convenience only and shall not control or
affect the meaning or construction of any of its provisions.

11.10                 Governing Law.  The provisions of this Plan shall be
construed, governed  and interpreted according
to the laws of the State of Georgia, to the extent not preempted by United
States Federal law.

11.11                 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:

Chair, Compensation and
Human Resources Committee

Board of Directors

c/o Mueller Water Products, Inc.

1200 Abernathy Road.

Atlanta, GA 30328

Such notice shall
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.

11.12                 Successors.  The provisions of this Plan shall bind and
inure to the benefit of the Company and its successors and assigns and the
Participant, the Participant’s Beneficiaries, and their permitted successors
and assigns.

 18
 

 

11.13                 Validity.  In case any provision of this Plan shall be
illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining parts hereof, but this Plan shall be construed and
enforced as if such illegal or invalid provision had never been inserted
herein.

11.14                 Incompetent.  If the Committee determines in its discretion
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 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 may require proof of minority, incompetency, 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 shall be a complete discharge of any
liability under the Plan for such payment amount.

11.15                 Counterparts.  This instrument may be executed in one or
more counterparts each of which shall be legally binding and enforceable.

 19
 

 

IN WITNESS WHEREOF, the Company has
executed this Plan document as of March 22, 2007.

 

	
  

  	
  MUELLER WATER PRODUCTS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald N. Boyce

  	
   

  
	
   

  	
   

  	
  Donald N. Boyce

  
	
   

  	
  Its:

  	
   Chairman,
  Compensation and

  Human Resources Committee

  
	
   

  	
   

  	
   

  

 

 20ex10_22.htm

    
      

    

    Exhibit
      10.22

     

    March
      20,
      2007

    
      

      James
        Morlan

      

      

      Dear
        Jim:

       

      This
        letter agreement (the “Agreement”) sets forth the terms that ViewSonic
        Corporation (the “Company”) is offering to you to aid in your employment
        transition.

      

      1.           RESIGNATION
        AS CHIEF FINANCIAL
        OFFICER. On June 8, 2007,
        you shall resign from your position as Chief Financial Officer (the “Transition
        Date”).   This date may be extended by mutual agreement between
        you and the Company; if this date is extended, then the Transition Date shall
        be
        the date after June 8, 2007 that the Company’s new Chief Financial Officer
        commences employment.  If the Company hires a new Chief Financial
        Officer prior to June 8, 2007, and the new Chief Financial Officer does not
        want
        you to continue in the Chief Financial Officer role until June 8, 2007, then
        you
        shall resign your position as Chief Financial Officer (and your job title
        will
        change to Executive Advisor) but you shall remain as an employee pursuant
        to the
        terms of this Section 1 until June 8, 2007 (and June 8, 2007 shall be deemed
        to
        be the Transition Date).  Until the Transition Date, you shall
        continue to use your best efforts to perform your assigned duties and
        responsibilities, including, without limitation, the preparation, verification,
        and filing of the Company’s required SEC filings.  You will continue
        to receive your full current salary and benefits until the Transition Date,
        and
        you will continue to comply with all of the Company’s policies and procedures
        during this time.  On the Transition Date, the Company will pay you
        the gross amount of $5,000.00 for you to select and obtain appropriate
        outplacement services.

       

      2.           TRANSITION
        PERIOD.  Provided that you: (i) sign
        this Agreement; and (ii) allow the release contained herein to become effective;
        and (iii) comply with all of your obligations under this Agreement, then
        commencing on the Transition Date and continuing until June 30, 2008 (the
        “Termination Date”), the Company shall retain you as an employee of the Company
        in the position of Executive Advisor.  This period shall be referred
        to herein as the “Transition Period.”   During the Transition
        Period, the following terms will apply:

      

            (a)           Duties
        and responsibilities. During the Transition Period, you will be
        available to provide services to the Company as requested, on a flexible
        schedule basis.  Your duties will be as assigned by the Company’s CEO
        and/or new CFO and will include, among other things, assisting the new CFO
        with
        his duties and responsibilities and with special projects within the Company’s
        Finance organization.  You agree to utilize your best efforts in
        performing your assigned duties during the Transition Period.  The
        Company agrees to notify you in writing promptly if at any time during the
        Transition Period it believes that you are not in compliance with your
        obligations under this Agreement.  The Company further agrees to
        provide you with twenty (20) days’ notice and opportunity to cure, if curable,
        at the time such written notice is provided specifying the issues
        involved.

      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

            (b)           Other
        work during the Transition Period.  You may engage in
        employment, consulting or other work relationships in addition to your work
        for
        the Company during the Transition Period provided that such employment,
        consulting or other work relationship is not with a competitor of the Company
        and does not violate your continuing obligations to maintain the confidence
        and
        confidential information of the Company as set forth in the Employee
        Confidentiality and Invention Assignment Agreement executed by you and
        incorporated by reference herein and attached hereto as Exhibit A (the
“Confidentiality Agreement”).  The Company agrees to make reasonable
        arrangements to enable you to perform your work for the Company at such times
        and in such a manner so that it does not unreasonably interfere with other
        work
        activities in which you may engage.

      

           
        (c)           Transition
        Period Salary.  From the Transition Date until the
        Termination Date, the Company will pay you an amount equal to six (6) months
        of
        your current base salary (the “Transition Period Salary”).  The
        Transition Period Salary will be paid in equal installment amounts on the
        Company’s standard payroll dates during the Transition Period and will be
        subject to standard deductions and withholdings.

      

           
        (d)           Transition
        Period Benefits.  During the Transition Period, you will be
        entitled to continue your participation in the following Company benefit
        plans
        pursuant to the terms of those plans:  (i) group health medical
        insurance; (ii) group health dental insurance; (iii) company-sponsored life
        insurance; (iv) 401(k) plan (including the Company’s matching contribution); and
        (v) short term and long term disability insurance.  You will not,
        however, continue to accrue vacation days, sick days or other paid time off
        during the Transition Period, nor will you be entitled to any automobile
        allowance during this period.

       

      3.           SEVERANCE
        HEALTH BENEFITS.  To the extent provided by the
        federal COBRA law and the state Cal-COBRA law, and by the Company’s current
        group health insurance policies, you will be eligible to continue your current
        group health insurance benefits for a period of thirty-six (36) months after
        the
        Termination Date.  If you:  (i) timely elect continued
        health insurance coverage under COBRA and Cal-COBRA; and (ii) sign the
        Termination Date Release attached hereto as Exhibit B on or within 21 days
        after
        the Termination Date; and (iii) allow this Termination Date Release to become
        effective; then the Company will pay the cost of continuing your health
        insurance benefits for a period of three (3) months after the Termination
        Date.

       

      4.           TERMINATION
        DATE PAYMENT.  As of the Termination
        Date, you will cease to be employed by the Company in any
        capacity.  On the Termination Date, the Company will pay you all
        accrued salary earned through the Termination Date, subject to standard payroll
        deductions and withholdings.  However, the Company will pay you for
        all accrued and unused Paid Time Off (“PTO”) on the Transition
        Date.  You are entitled to payment for all accrued salary, and all
        accrued and unused PTO, regardless of whether you sign this
        Agreement.

      
        
          
          

        

        
          Page
            2 of 11

          
            

          

        

        
          
          

        

      

      

      5.           STOCK
        OPTIONS. During your employment with the
        Company, you were granted options to purchase shares of the Company’s common
        stock (the “Options”) under the Company’s 1999 Stock Option Plan (the
“Plan”).  All of the Options currently are vested.  Pursuant
        to the terms of the Plan, you shall have the right to exercise your Options
        up
        to the date that is three (3) months after the Termination Date (the
“Post-Termination Date Exercise Period”); provided, however, that if you are
        unable to exercise your vested Options and sell the shares acquired upon
        such
        exercise during the Post-Termination Date Exercise Period due to a lock-up
        agreement entered into in connection with the Company’s initial public offering,
        then the Board will extend your Post-Termination Date Exercise Period for
        an
        additional thirty (30) days for each full thirty (30) day period during the
        Post-Termination Date Exercise Period during which the shares acquired upon
        exercise of your Options are subject to lock-up; provided, however, that
        in no
        event shall the Post-Termination Exercise Date be extended to a date that
        is
        after December 31, 2008.  Except as modified herein, the Options shall
        continue to be governed by the terms of the Plan and the applicable grant
        notices.

       

      6.           LONG
        TERM INCENTIVE PLAN.  You will continue to participate
        in the Company’s Long Term Incentive Program (the “Incentive Program”) pursuant
        to the terms of that Program; provided, however, that you shall be eligible
        to
        receive vesting of one-third (1/3) of your Target Award (as defined in the
        Incentive Program) if the Company meets or exceeds both its Revenue Target
        and
        Income Target for the first two quarters of the fiscal year ending December
        31,
        2007.  For purposes of this Section 6 only, the Performance Targets
        set forth on Exhibit B to the Incentive Program shall be prorated based upon
        the
        first two quarters of fiscal year 2007.    Notwithstanding
        the terms of the Program, the Determination Date (as defined in the Incentive
        Program) for you shall occur within thirty (30) days following the date the
        Company files its Quarterly Report on Form 10-Q with the SEC for the second
        quarter of fiscal year 2007.  You also hereby waive and release any
        eligibility or entitlement you may have to any further compensation or benefits
        under the Incentive Program except as set forth herein.  Except as
        expressly modified in this Section 6, any compensation or benefits under
        the
        Incentive Program shall be governed by the terms of the Incentive
        Program.

       

      7.           INDEMNIFICATION.  Nothing
        in this Agreement shall affect any rights you may have to indemnification
        from
        the Company or its insurance carriers pursuant to agreement, statute, insurance
        policy, or otherwise.  The Indemnity Agreement between you and the
        Company shall remain in full force and effect.

       

      8.           NO
        OTHER COMPENSATION OR BENEFITS
        THEREAFTER.  You acknowledge and
        agree that except as expressly provided in this Agreement, you will not receive
        any additional compensation, severance or benefits (including, but not limited
        to, long term disability, short term disability or life insurance) after
        the
        Termination Date.

       

      9.           EXPENSE
        REIMBURSEMENTS.  You agree that
        within thirty (30) days after the Termination Date, you will submit your
        request
        for reimbursement of any business expenses incurred during your employment
        which
        have not previously been reimbursed.  The Company will reimburse you
        for these expenses pursuant to its standard business practice.

      
        
          
          

        

        
          Page
            3 of 11

          
            

          

        

        
          
          

        

      

      

      10.        RETURN
        OF COMPANY PROPERTY.  You agree that on or before the
        Termination Date, you will make a diligent search and return to the Company
        all
        Company documents (in electronic, paper or any other form as well as all
        copies
        thereof) and other Company property that you have had in your possession
        at any
        time, including, but not limited to, Company files, notes, drawings, records,
        business plans and forecasts, financial information, specifications,
        computer-recorded information, tangible property including, but not limited
        to,
        computers, credit cards, entry cards, identification badges and keys; and
        any
        materials of any kind that contain or embody any proprietary or confidential
        information of the Company (and all reproductions thereof).  You agree
        to make a diligent search for all such Company property.  If you have
        used any personal computer, server, or e-mail system to receive, store, review,
        prepare or transmit any Company confidential or proprietary data, materials
        or
        information, you agree to provide the Company with a computer-useable copy
        of
        such information and then permanently delete and expunge such Company
        confidential or proprietary information from those systems; and you agree
        to
        provide the Company access to your system as requested to verify that the
        necessary copying and/or deletion is done.  You agree that, after the
        Termination Date, you will neither use nor possess Company
        property.

       

      11.        PROPRIETARY
        INFORMATION OBLIGATIONS.  You acknowledge your
        continuing obligations under your Confidentiality Agreement, which you entered
        into when you began your employment with ViewSonic.

       

      12.        NONDISPARAGEMENT.  You
        agree not to disparage the Company, and its officers, directors, employees,
        shareholders and agents, in any manner likely to be harmful to it or them,
        or to
        its or their business, business reputation or personal reputation; provided
        that
        you shall respond accurately and fully to any question, inquiry or request
        for
        information when required by legal process.  You further agree that
        any material breach of this provision on your part shall be considered a
        material breach of this Agreement. The Company likewise agrees that its
        management shall not disparage you in any manner likely to be harmful to
        your
        future employment, business reputation, or personal reputation, provided
        that
        you refer all inquiries about you to the attention of Tim Ashcroft and the
        Company shall respond accurately and fully to any question, inquiry, or request
        for information when required by legal process.  The Company agrees
        that any material breach of this provision on its part shall be considered
        a
        material breach of this Agreement; provided, however, that even in the event
        of
        a material breach of this Section 12 by the Company, your Releases set forth
        in
        Sections 14, 15, and 16, and Exhibit B, herein shall remain in full force
        and
        effect.  Both you and the Company agree to provide each other with
        immediate written notice of a claimed breach of this provision and to meet
        and
        confer in good faith over any alleged breach prior to ceasing performance
        or
        filing a demand for arbitration hereunder.

       

      13.        NO
        WORKERS’ COMPENSATION OR LEAVE CLAIMS.  You
        acknowledge and agree that you have not filed any claims for workers’
compensation, short-term disability, or long-term disability nor are you
        aware
        of any medical condition that could give rise to such a
        claim.   You also agree that you have received any leave benefits
        to which you are entitled pursuant to the federal Family and Medical Leave
        Act
        and similar state statutes.

      
        
          
          

        

        
          Page
            4 of 11

          
            

          

        

        
          
          

        

      

      

      14.         RELEASE
        BY YOU.  In exchange for the benefits
        to be provided under this Agreement (including the Transition Period
        compensation and benefits and Severance Health Benefits), and other
        consideration under this Agreement to which you would not otherwise be entitled,
        you hereby generally and completely release the Company and its directors,
        officers, employees, shareholders, partners, agents, attorneys, predecessors,
        successors, parent or subsidiary entities, insurers, affiliates and assigns
        from
        any and all claims, liabilities and obligations, both known and unknown,
        that
        arise out of or are in any way related to events, acts, conduct, or omissions
        prior to or on the date you sign this Agreement.  This general release
        includes, but is not limited to: (1) all claims arising out of or in any
        way
        related to your employment with the Company or the termination of that
        employment; (2) all claims related to your compensation or benefits from
        the
        Company, including salary, bonuses, commissions, vacation pay, expense
        reimbursements, severance pay, fringe benefits, stock, stock options or any
        other ownership interests in the Company; (3) all claims for breach of contract,
        wrongful termination or breach of the implied covenant of good faith and
        fair
        dealing; (4) all tort claims, including claims for fraud, defamation, emotional
        distress and discharge in violation of public policy; and (5) all federal,
        state, and local statutory claims, including claims for discrimination,
        harassment, retaliation, attorneys’ fees, or other claims arising under the
        federal Civil Rights Act of 1964 (as amended), the federal Americans with
        Disabilities Act of 1990, the federal Age Discrimination in Employment Act
        of
        1967 (as amended) (the “ADEA”), or the California Fair Employment and Housing
        Act (as amended) (“FEHA”).  Notwithstanding anything in this
        paragraph, you are not hereby releasing the Company from any obligation it
        may
        otherwise have to indemnify you for your acts within the course and scope
        of
        your employment with the Company, nor from any obligations undertaken by
        the
        Company in this Agreement.

       

      15.         ADEA
        WAIVER. You hereby acknowledge that you
        are knowingly and voluntarily waiving and releasing any rights and claims
        concerning age discrimination you may have under the ADEA and FEHA, and that
        the
        consideration given for the foregoing waiver is in addition to anything of
        value
        to which you were already entitled.  You have been advised by this
        writing, as required by the ADEA, that: (a) your waiver and release do not
        apply
        to any claims that may arise after the Effective Date of this Agreement;
        (b) you
        should consult with an attorney prior to executing this release; (c) you
        have
        twenty-one (21) days from receipt of this letter within which to consider
        this
        release (although you may choose to voluntarily execute this release earlier);
        (d) you have seven (7) days following the execution of this release to revoke
        the Agreement by notifying the Company in writing; and (e) this Agreement
        will
        not be effective until the eighth day after this Agreement has been signed
        both
        by you and by the Company and not revoked by you (“Effective
        Date”).

       

      16.         SECTION
        1542 WAIVER.  In granting the
        releases herein, which may include claims that are unknown at present, the
        parties acknowledge that they have read and understand Section 1542 of the
        California Civil Code:  “A general release does not extend to
        claims which the creditor does not know or suspect to exist in his favor
        at the
        time of executing the release, which if known by him must have materially
        affected his settlement with the debtor.” Except as provided in Section
        15 herein, the parties hereby expressly waive and relinquish all rights and
        benefits under that section and any law of any jurisdiction of similar effect
        with respect to the release of any unknown or unsuspected claims
        herein.

       

      17.         PARTIAL
        RELEASE BY COMPANY. In consideration for
        your fulfilling your obligations under this Agreement, the Company hereby
        releases you from any and all claims, liabilities and obligations, both known
        and unknown, that arise out of or are in any way related to events, acts,
        conduct, or omissions prior to or on the date you sign this Agreement, except
        that this release shall not extend to: (1) claims based on willful or fraudulent
        acts or omissions by you; (2) claims that may arise after this Agreement
        is
        executed; and (3) claims arising at any time out of your obligations to protect
        the Company’s proprietary information.  You represent that you have
        disclosed to the Company all the facts and circumstances surrounding any
        claims
        of which you have actual or constructive knowledge that any third party may
        assert against the Company based on your acts or omissions.

      
        
          
          

        

        
          Page
            5 of 11

          
            

          

        

        
          
          

        

      

      

      18.         NO
        VOLUNTARY ADVERSE ACTION.  You agree
        that you will not voluntarily (except in response to legal compulsion) assist
        any third party in bringing or pursuing any proposed or pending litigation,
        arbitration, administrative claim or other formal proceeding against the
        Company, its parent or subsidiary entities, affiliates, officers, directors,
        employees or agents.

       

      19.        COOPERATION.  You
        agree to cooperate fully with the Company in connection with its actual or
        contemplated defense, prosecution, or investigation of any claims or demands
        by
        or against third parties, or other matters arising from events, acts, or
        failures to act that occurred during the period of your employment by the
        Company.  Such cooperation includes, without limitation, making
        yourself available to the Company upon reasonable notice, without subpoena,
        to
        provide complete, truthful and accurate information in witness interviews,
        depositions and trial testimony.  The Company will reimburse you for
        reasonable out-of-pocket expenses you incur in connection with any such
        cooperation (excluding forgone wages, salary, or other compensation) and
        will
        make reasonable efforts to accommodate your scheduling needs.  In
        addition, you agree to execute all documents (if any) necessary to carry
        out the
        terms of this Agreement.

       

      20.         NO
        ADMISSIONS.  Nothing contained in
        this Agreement shall be construed as an admission by you or the Company of
        any
        liability, obligation, wrongdoing or violation of law.

       

      21.        MISCELLANEOUS.  This
        Agreement constitutes the complete, final and exclusive embodiment of the
        entire
        agreement between you and the Company with regard to this subject
        matter.  It is entered into without reliance on any promise or
        representation, written or oral, other than those expressly contained herein,
        and it supersedes any other such promises, warranties, representations or
        prior
        agreements with the Company.  This Agreement may not be modified or
        amended except in a writing signed by both you and a duly authorized officer
        of
        the Company.  This Agreement will bind the heirs, personal
        representatives, successors and assigns of both you and the Company, and
        inure
        to the benefit of both you and the Company, their heirs, successors and
        assigns.  If any provision of this Agreement is determined to be
        invalid or unenforceable, in whole or in part, this determination will not
        affect any other provision of this Agreement and the provision in question
        will
        be modified by the court so as to be rendered enforceable.  This
        Agreement will be deemed to have been entered into and will be construed
        and
        enforced in accordance with the laws of the State of California as applied
        to
        contracts made and to be performed entirely within California.

       

      22.        APPLICATION
        OF INTERNAL REVENUE CODE SECTION
        409A.  If the Company determines that
        any amounts payable under this Agreement fail to satisfy the distribution
        requirement of Section 409A(a)(2)(A) of the Internal Revenue Code as a result
        of
        Section 409A(a)(2)(B)(i) of the Internal Revenue Code, the payment of such
        benefit shall be accelerated to the minimum extent necessary so that the
        benefit
        is not subject to the provisions of Section 409A(a)(1) of the Internal Revenue
        Code.  (It is the intention of the preceding sentence to apply the
        short-term deferral provisions of Section 409A of the Internal Revenue Code
        to
        such payments, and the payment schedule as revised after the application
        of the
        preceding sentence shall be referred to as the “Revised Payment
        Schedule.”)  However, if there is no Revised Payment Schedule that
        would avoid the application of Section 409A(a)(1) of the Internal Revenue
        Code,
        the payment of such benefits shall not be paid pursuant to a Revised Payment
        Schedule and instead shall be delayed to the minimum extent necessary so
        that
        such benefits are not subject to the provisions of Section 409A(a)(1) of
        the
        Internal Revenue Code.  The Company may attach conditions to or adjust
        the amounts paid pursuant to this Agreement to preserve, as closely as possible,
        the economic consequences that would have applied in the absence of this
        Section
        20; provided, however, that no such condition or adjustment shall
        result in the payments being subject to Section 409A(a)(1) of the Internal
        Revenue Code.  The Company shall provide you with appropriate written
        notice and an opportunity to respond if there is a need to modify in any
        way the
        payment of any benefits under this Agreement pursuant to this
        paragraph.

      
        
          
          

        

        
          Page
            6 of 11

          
            

          

        

        
          
          

        

      

      

      23.        DISPUTE
        RESOLUTION.  Any action to interpret
        or enforce this Agreement will be subject to final and binding arbitration
        in
        Orange County, California, before Judicial Arbitration and Mediation Services
        (“JAMS”) pursuant to JAMS then-current rules for the resolution of employment
        disputes.  The prevailing party in any such arbitration will be
        entitled to recover his or its reasonable attorneys’ fees and costs in
        connection with the arbitration.

      

      If
        this
        Agreement is acceptable to you, please sign below and return the original
        to
        me.

      

      I
        wish
        you good luck in your future endeavors.

      

      Sincerely,

      

      VIEWSONIC
        CORPORATION

      

      

      
        	
                By:

              	
                 /s/ 
                  Tim Ashcroft

              	
              
	
                 

              	
                Tim
                  Ashcroft, Vice President Corporate HR

              	 
	 	 
	 	 
	
                ACCEPTED
                  AND AGREED:

              	 
	 	 
	 	 
	
                /s/
                  James Morlan

              	 
	
                James
                  Morlan

              	 

      

      

      Date:
        March 21, 2007

      
        
          
          

        

        
          Page
            7 of 11

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      CONFIDENTIALITY
        AGREEMENT

      
        VIEWSONIIC
          CORPORATION

        

        Employee
          Confidentiality and

        Invention 
          Assignment  Agreement

        

        I
          hereby
          acknowledge and agree as follows with VIEWSONIC CORPORATION (the “Company”) in
          connection with my employment or the continuance of my employment (as the
          case
          may be) with the Company.

        

        
          	
                  I.

                	
                  No
                    Term ofEmployment. I acknowledge and agree that my employment
                    with the Company is not for any fixed term, and that my employment
                    will
                    continue only at the will of both the Company and me. I agree
                    that this
                    means my employment may be terminated at any time for any reason
                    or for no
                    reason, either with or without cause, either by me or the
                    Company.

                

        

        

        
          	
                  2.

                	
                  No
                    Conflicts with PriorEmployment. I represent that my employment
                    with the Company will not conflict with any obligations which
                    I have to
                    former employers or any other persons. I specifically represent
                    that I
                    have not brought to the Company (and will not bring to the Company)
                    any
                    materials or documents of a former employer, or any confidential
                    information or property of a former
                    employer.

                

        

        

        
          	
                  3.

                	
                  PriorInventions.
                    As a matter of record, and in order to assist the Company in
                    determining
                    its rights to any discoveries and inventions in connection with
                    my
                    employment, I have listed (at the end of the Agreement) all inventions,
                    copyrighted material, patents and patent applications which I
                    own or have
                    any interest in and which were conceived of, or first reduced
                    to practice,
                    prior to my employment with the Company, all of which shall remain
                    my
                    property. If nothing is listed below, I agree that the Company
                    may
                    conclusively assume that I claim no interest in any inventions,
                    copyrighted material, patents or patent
                    application.

                

        

        

        
          	
                  4.

                	
                  Confidential
                    Information. I understand that as part of my employment with the
                    Company I am expected to make new contributions of value to the
                    Company. I
                    also acknowledge that, during my employment, I will learn information
                    relating to the Company (and its business and products) which
                    has
                    commercial value to the Company and which the Company desires
                    to keep
                    confidential. This confidential information will include such
                    things as
                    trade secrets, techniques, know-how, discoveries, inventions,
                    marketing
                    information, business strategies, information regarding customers
                    and
                    suppliers, and any other information (whether or not necessarily
                    in
                    writing) which may be useful to the Company and which is not
                    generally
                    available to the public (all of this information is referred
                    to in this
                    Agreement as “Confidential Information”). I agree that all such
                    Confidential Information will be the sole property of the Company,
                    and I
                    agree that I will not disclose any Confidential Information to
                    any other
                    person (except solely in performing my duties as an employee
                    of the
                    Company), and that I will otherwise keep all Confidential Information
                    in
                    strictest confidence and not use it for any purpose adverse to
                    the
                    Company.

                

        

        
          
            
            

          

          
            Page
              8 of 11

            
              

            

          

          
            
            

          

        

        
          	
                  5.

                	
                  Inventions
                    During Employment. I agree that all discoveries and inventions which
                    relate in any manner to the business or the future business of
                    the
                    Company, and which are conceived, authored or made by me (either
                    alone or
                    with others) during my employment with the Company, will constitute
“work
                    for hire” and will be the sole property of the Company. I will promptly
                    disclose these discoveries and inventions to the Company in writing,
                    and I
                    will not disclose these discoveries and inventions to any other
                    persons. I
                    hereby assign to the Company all my right to such discoveries
                    and
                    inventions, and I will sign such additional documents, as the
                    Company from
                    time to time considers advisable in order to complete this assignment
                    and
                    to apply for patent or copyright protection in the name of the
                    Company. I
                    agree that, for purposes of this Agreement, the term “discoveries and
                    inventions” shall have the broadest meanings, including new products,
                    machines, methods, processes, software programs, improvements,
                    compositions of matter, and designs or
                    configurations.

                

        

        

        I
          understand that the Company is hereby advising me that any provision in
          this
          Agreement requiring me to assign my rights in any invention does not apply
          to an
          invention which qualifies fully under the provisions of Section 2870 of
          the
          California Labor Code. That section provides that the requirement to assign
          inventions “shall not apply to an invention that the employee developed entirely
          on his or her own time without using the employer’s equipment, supplies,
          facilities, or trade secret information except for those inventions that
          either:
          (1) relate at the time of conception or deduction to practice of the invention
          to the employer’s business, or actual or demonstrably anticipated research or
          development of the employer; (2) result from any work performed by the
          employee
          for the employer.” By signing this Agreement, I acknowledge that this paragraph
          shall constitute written notice of those provisions of Section
          2870.

        

        
          	
                  6.

                	
                  Certain
                    FurtherAgreements. I agree that, since my employment with the
                    Company will involve a relationship of confidence and trust,
                    during my
                    employment I will not engage in any other employment or business
                    activities which are competitive with or otherwise conflict with
                    the
                    interests of the Company, and I will not plan or organize any
                    such
                    competing business activity.

                

        

        

        
          	
                  7.

                	
                  Certain
                    Obligations UponTerminationofEmployment. In the
                    event of the termination of my employment by me or by the Company
                    for any
                    reason, I will promptly deliver to the Company all documents
                    and other
                    materials of any nature pertaining to my work with the Company
                    which
                    contain any Confidential Information or any discoveries and inventions,
                    I
                    will not take with me any such documents or materials (or any
                    copies of
                    them), and I will continue to keep all Confidential Information
                    in
                    strictest confidence as required by paragraph 4 above. I also
                    agree that,
                    in recognition of my position of confidence and trust with the
                    Company
                    during my employment, for a period of one-year following such
                    termination
                    I will not solicit any of the Company’s employees to work for a
                    competitive company.

                

        

        

        
          	
                  8.

                	
                  Entire
                    Agreement. This Agreement is the entire agreement between the Company
                    and me regarding the above matters, and I represent that I am
                    not relaying
                    upon any contrary statements or understandings between me and
                    the Company
                    with regard to these matters.

                

        

        

        

        
          	
                  Dated:

                	
                  June
                    21, 2000

                	 

        

         

        
          
            	 	
                    EMPLOYEE

                  
	 	 
	 	
                    James
                      A. Morlan.

                  	 
	 	 
	 	
                    (printed
                      name of employee)

                  
	 	 
	 	
                    /s/
                      James A. Morlan.

                  	 
	 	
                    (signature
                      of employee)

                  
	 	 

          

          

          
            	 	 
	 	
                    VIEWSONIC
                      CORPOARTION

                  
	 	 
	 	
                    By:

                  	
                    /s/
                      Joanne Thielen

                  	 
	 	
                    Its:

                  	
                    HR
                      Manager

                  	
                  

          

           

        

        
          	
                  Prior
                    Inventions (if any) —
                    see paragraph 3 above:

                
	 
	 
	 
	 
	 

        

        

        (attach
          additional pages if necessary)

         

        
          
            
              
              

            

            
              Page
                9 of 11

              
                

              

            

            
              
              

            

          

        

        

      

      Exhibit
        B

      TERMINATION
        DATE RELEASE

      

      (To
        be
        signed on or within 21 days after the Termination Date)

      

      In
        exchange for the consideration under the Agreement between ViewSonic Corporation
        (the “Company”) and me dated March 21, 2007, I hereby generally and completely
        release the Company and its directors, officers, employees, shareholders,
        partners, agents, attorneys, predecessors, successors, parent or subsidiary
        entities, insurers, affiliates and assigns from any and all claims, liabilities
        and obligations, both known and unknown, that arise out of or are in any
        way
        related to events, acts, conduct, or omissions prior to or on the date I
        sign
        this Agreement.  This general release includes, but is not limited to:
        (1) all claims arising out of or in any way related to my employment with
        the
        Company or the termination of that employment; (2) all claims related to
        my
        compensation or benefits from the Company, including salary, bonuses,
        commissions, vacation pay, expense reimbursements, severance pay, fringe
        benefits, stock, stock options or any other ownership interests in the Company;
        (3) all claims for breach of contract, wrongful termination or breach of
        the
        implied covenant of good faith and fair dealing; (4) all tort claims, including
        claims for fraud, defamation, emotional distress and discharge in violation
        of
        public policy; and (5) all federal, state, and local statutory claims, including
        claims for discrimination, harassment, retaliation, attorneys’ fees, or other
        claims arising under the federal Civil Rights Act of 1964 (as amended), the
        federal Americans with Disabilities Act of 1990, the federal Age Discrimination
        in Employment Act of 1967 (as amended) (the “ADEA”), or the California Fair
        Employment and Housing Act (as amended)(“FEHA”).  Notwithstanding
        anything in this paragraph, I understand that I am not hereby releasing the
        Company from any obligation it may otherwise have to indemnify me for acts
        within the course and scope of my employment with the Company, nor from any
        obligations undertaken by the Company in this Agreement.

      

      ADEA
        Waiver and Release.  I acknowledge that I am knowingly and
        voluntarily waiving and releasing any rights I may have concerning age
        discrimination under the ADEA and FEHA, as amended.  I also
        acknowledge that the consideration given for the waiver and release in the
        preceding paragraph hereof is in addition to anything of value to which I
        was
        already entitled.  I further acknowledge that I have been advised by
        this writing, as required by the ADEA, that:  (a) my waiver and
        release does not apply to any rights or claims that may arise after the
        execution date of this Agreement; (b) I have been advised that I have the
        right
        to consult with an attorney prior to executing this Agreement; (c) I have
        been
        given twenty-one (21) days to consider this Agreement; (d) I have seven (7)
        days
        following the execution of this Agreement by the parties to revoke the
        Agreement; and (e) this Agreement will not be effective until the date upon
        which the revocation period has expired, which will be the eighth day after
        this
        Agreement is executed by you, provided that the Company has also executed
        this
        Agreement by that date (“Effective Date”).

      
        
          
          

        

        
          Page
            10 of
            11

          
            

          

        

        
          
          

        

      

      SECTION
        1542 WAIVER.  In granting the
        releases herein, which may include claims that are unknown at present, I
        acknowledge that I have read and understand Section 1542 of the California
        Civil
        Code:  “A general release does not extend to claims which the
        creditor does not know or suspect to exist in his favor at the time of executing
        the release, which if known by him must have materially affected his settlement
        with the debtor.” I hereby expressly waive and relinquish all rights
        and benefits under that section and any law of any jurisdiction of similar
        effect with respect to the release of any unknown or unsuspected claims
        herein.

      

      ACCEPTED
        AND AGREED:

      
 

                                                                                                        
James
        Morlan

      

      Date:______________________________________

       

       

      Page
        11 of
        11

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