Document:

EX-10.17

Exhibit 10.17

ITT EXCESS SAVINGS PLAN

As Amended and Restated as of December 31, 2008

 

 

INTRODUCTION

The ITT Excess Savings Plan (the “Plan”) was effective as of January 1, 1987. The purpose of the
Plan was to provide a means of restoring the contributions lost under the ITT Investment and
Savings Plan for Salaried Employees due to the application of the limitations imposed on qualified
plans by Section 415 of the Internal Revenue Code.

As of January 1, 1989, the Plan was amended to provide (i) a means for restoring, for an employee
participating in the ITT Investment and Savings Plan for Salaried Employees (the “Savings Plan”),
the matching and other employer contributions lost under said Plan due to the application of the
limitations imposed on qualified plans by Section 401(a)(17) and Section 402(g)(1) of the Internal
Revenue Code (the “Code”) and (ii) a means of providing such employees with an opportunity to defer
a portion of their salary in accordance with the terms of said Plan as hereinafter set forth.

As of January 1, 1995, the Plan was further amended to provide a means of restoring, for an
employee participating in the ITT Investment and Savings Plan for Salaried Employees, matching and
other employer contributions lost due to the deferral of base compensation under another
nonqualified deferred compensation program. As of December 19, 1995, the Plan was renamed and
continued as the ITT Industries Excess Savings Plan.

As of January 1, 1996, the Plan was further amended to solely provide to individuals who are
designated as Eligible Employees under the Plan on and after January 1, 1996, a means to restore
the contributions lost under the Savings Plan due to the application of the limitations imposed by
Sections 415 and 401(a)(17) of the Code and providing such employees with an opportunity to defer a
portion of their base salary and to transfer any liabilities not attributable to such benefits to
the ITT Industries Deferred Compensation Plan. The Plan was further amended, effective as of (i)
January 1, 1997, to provide additional optional forms of distributions and to revise the
participation requirements, (ii) July 1, 1997, to revise the eligibility requirements to permit an
Eligible Employee to participate in his first year of employment, and (iii) September 1, 1997, to
further expand the distribution options available under the Plan.

In July, 2004, the Plan was amended and restated to make certain changes regarding the effect of an
Acceleration Event and to unify the definition of Acceleration Event with other employee benefit
plans of ITT Industries, and to make certain other technical amendments.

 

 

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Effective as of July 1, 2006, the Plan name was revised to the ITT Excess Savings Plan. Effective
as of January 1, 2008, the Plan was amended to make certain administrative changes.

Effective as of December 31, 2008, the Plan was amended and restated to comply with the provisions
of Section 409A of the Code and the regulations promulgated thereunder.

All benefits payable under this Plan, which is intended to constitute both an unfunded excess
benefit plan under Section 3(36) of Title I of the Employee Retirement Income Security Act of 1974,
as amended (“ERISA”), and a nonqualified, unfunded deferred compensation plan for a select group of
management employees under Title I of ERISA, shall be paid out of the general assets of the
Corporation. The Corporation may establish and fund a trust in order to aid it in providing
benefits due under the Plan.

 

 

ITT

EXCESS SAVINGS PLAN

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I — DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II — PARTICIPATION
	 	 	5	 
	 
	 	 	 	 
	2.01 Eligibility
	 	 	5	 
	2.02 Participation and Filing Requirements
	 	 	6	 
	2.03 Termination of Participation
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III — EXCESS SAVINGS PLAN CONTRIBUTIONS
	 	 	9	 
	 
	 	 	 	 
	3.01 Amount of Contributions
	 	 	9	 
	3.02 Investment of Accounts
	 	 	10	 
	3.03 Vesting of Accounts
	 	 	11	 
	3.04 Individual Accounts
	 	 	11	 
	3.05 Valuation of Accounts
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IV — PAYMENT OF CONTRIBUTIONS
	 	 	13	 
	 
	 	 	 	 
	4.01 Commencement of Payment
	 	 	13	 
	4.02 Method of Payment
	 	 	13	 
	4.03 Payment upon the Occurrence of a Change in Control
	 	 	13	 
	 
	 	 	 	 
	ARTICLE V — GENERAL PROVISIONS
	 	 	14	 
	 
	 	 	 	 
	5.01 Funding
	 	 	14	 
	5.02 No Contract of Employment
	 	 	14	 
	5.03 Unsecured Interest
	 	 	14	 
	5.04 Facility of Payment
	 	 	14	 
	5.05 Withholding Taxes
	 	 	15	 
	5.06 Nonalienation
	 	 	15	 
	5.07 Transfers
	 	 	15	 
	5.08 Claims Procedure
	 	 	16	 
	5.09 Compliance
	 	 	17	 
	5.10 Acceleration of or Delay in Payments
	 	 	18	 
	5.11 Construction
	 	 	18	 
	 
	 	 	 	 
	ARTICLE VI — AMENDMENT OR TERMINATION
	 	 	19	 
	 
	 	 	 	 
	6.01 Right to Terminate
	 	 	19	 
	6.02 Right to Amend
	 	 	19	 
	 
	 	 	 	 
	ARTICLE VII — ADMINISTRATION
	 	 	20	 

 

 

ITT EXCESS SAVINGS PLAN

ARTICLE I — DEFINITIONS

	1.01	 	“Acceleration Event” shall mean “Acceleration Event” as that term is defined under the
provisions of the Plan as in effect on October 3, 2004.
	 
	1.02	 	“Accounts” shall mean the Deferral Account, the Floor Contribution Account and the Matching
Contribution Account.
	 
	1.03	 	“Associated Company” shall mean any division, unit, subsidiary, or affiliate of the
Corporation not participating in the Savings Plan.
	 
	1.04	 	“Beneficiary” shall mean the person or persons designated pursuant to the provisions of the
Savings Plan to receive benefits under said Savings Plan after a Member’s death.
	 
	1.05	 	“Change of Control” shall mean “Change of Control” as such term is defined in ITT Excess
Pension Plan IIA, as amended from time to time.
	 
	1.06	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
	 
	1.07	 	“Committee” shall mean the Plan Committee under the Savings Plan.
	 
	1.08	 	“Company” shall mean the Corporation with respect to its employees or any Participating
Corporation or Participating Division (as such terms are defined in the Savings Plan)
authorized to participate in the Plan by the Corporation, with respect to each of its
employees.
	 
	1.09	 	“Corporation” shall mean ITT Corporation, an Indiana corporation, (formerly known as ITT
Industries, Inc.) or any successor by merger, purchase or otherwise.
	 
	1.10	 	“Deferral Account” shall mean the bookkeeping account (or subaccount(s)) maintained for each
Member to record the amounts credited on his behalf under Section 3.01(a) and earnings on
those amounts pursuant to Section 3.02.

 

 

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	1.11	 	“Effective Date” shall mean January 1, 1987.
	 
	1.12	 	“Eligible Employee” shall mean an Employee of the Company who is eligible to participate in
the Plan as provided in Section 2.01.
	 
	1.13	 	“Employee” shall have the meaning set forth in the Savings Plan.
	 
	1.14	 	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time
to time.
	 
	1.15	 	“Excess Matching Contributions” shall mean the amount of contributions credited on a Member’s
behalf under Section 3.01(b).
	 
	1.16	 	“Excess Floor Contributions” shall mean the amount of contributions credited on a Member’s
behalf under Section 3.01(c).
	 
	1.17	 	“Floor Contribution Account” shall mean the bookkeeping account (or subaccount(s)) maintained
for each Member to record all amounts credited on his behalf under Section 3.01(c) and
earnings on those amounts pursuant to Section 3.02.
	 
	1.18	 	“Matching Company Contribution” shall have the meaning set forth in the Savings Plan.
	 
	1.19	 	“Matching Contribution Account” shall mean the bookkeeping account (or subaccount(s))
maintained for each Member to record all amounts credited on his behalf under Section 3.01(b)
and earnings on those amounts pursuant to Section 3.02.
	 
	1.20	 	“Member” shall mean each Eligible Employee who participates in the Plan pursuant to Article
II.
	 
	1.21	 	“Plan” shall mean this ITT Excess Savings Plan (formerly known as the ITT Industries Excess
Savings Plan).
	 
	1.22	 	“Plan Year” shall mean the calendar year.

 

 

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	1.23	 	“Reporting Date” shall mean each business day on which the New York Stock Exchange is open
for business, or such other day as the Committee may determine.
	 
	1.24	 	“Retirement” shall mean the Termination of Employment by a Member after the date the Member
is eligible for an early, normal or postponed retirement allowance under the ITT Salaried
Retirement Plan (formerly known as the ITT Industries Salaried Retirement Plan), or would have
been eligible had he been a participant in such Plan.
	 
	1.25	 	“Salary” shall mean an Eligible Employee’s “Salary” as such term is defined in the Savings
Plan disregarding any reduction required due to the application of the Statutory Compensation
Limitation. Salary shall be determined before any reduction pursuant to an Eligible
Employee’s election to make Salary Deferrals under this Plan, but after reduction for
deferrals under any other nonqualified deferred compensation program maintained by the
Company.
	 
	1.26	 	“Salary Deferrals” shall mean the amount of Salary a Member has elected to defer for a Plan
Year pursuant to a Salary Reduction Agreement in accordance with the provisions of Section
3.01(a).
	 
	1.27	 	“Salary Reduction Agreement” shall mean the completed agreement including any amendments,
attachments and appendices thereto, in such form as approved by the Committee, entered into by
the Member pursuant to Section 2.02 under which he elects (i) to defer a portion of his Salary
under this Plan in accordance with the provisions of Section 3.01(a).
	 
	1.28	 	“Savings” shall have the meaning set forth in the Savings Plan.
	 
	1.29	 	“Savings Plan” shall mean the ITT Salaried Investment and Savings Plan (formerly known as the
ITT Industries Investment and Savings Plan for Salaried Employees), as amended from time to
time.
	 
	1.30	 	“Statutory Compensation Limitation” shall mean the limitations set forth in Section
401(a)(17) of the Code as in effect each calendar year for the Savings Plan.

 

 

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	1.31	 	“Termination of Employment” shall mean “Termination of Employment” as such term is defined in
the ITT Excess Pension Plan IIA, as amended from time to time.

 

 

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ARTICLE II — PARTICIPATION

	2.01	 	Eligibility

	 	(a)	(i)	 	 An Employee shall be an Eligible Employee for any particular Plan Year if
(A) the Employee is eligible to participate in the Savings Plan during that particular
Plan Year and (B) the Employee’s Salary as of the last day of the immediately preceding
calendar year exceeds the Statutory Compensation Limitation in effect for that
particular Plan Year.

	 	 	 	Notwithstanding the foregoing, an Employee whose Salary as of the last day of
the calendar year preceding a particular Plan Year does not exceed the Statutory
Compensation Limitation in effect for that particular Plan Year shall be an
Eligible Employee with respect to that particular Plan Year, provided the
Employee (A) was an Eligible Employee in the prior Plan Year and had salary
reduction contributions credited to his or her Deferral Account in that prior
Plan Year, (B) is eligible to participate in the Savings Plan during the
particular Plan Year, and (C) his Salary for that particular Plan Year exceeds
the Statutory Compensation Limitation in effect for that particular Plan Year.
	 
	 	(ii)	 	In the case of an Employee who is employed or reemployed by the
Company after the first day of a Plan Year and whose Salary in effect on his
employment (or reemployment) date exceeds the Statutory Compensation Limitation
in effect for that year, subject to the provisions of clause (iii) below, such
Employee shall be an Eligible Employee with respect to that Plan Year, provided
(i) such Plan Year is his initial year of eligibility in the Plan or any other
similar Plan maintained by the Corporation or an Associated Company which is
required to be aggregated with this Plan pursuant to the provisions of Treasury
Regs. Section 1.409A-1(c)(2), (ii) such Eligible Employee is eligible to
participate in the Savings Plan and (iii) such Eligible Employee’s Salary for the
portion of that Plan Year during which he is eligible to participate in the
Savings Plan will exceed the Statutory Compensation Limitation.

 

 

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	 	(iii)	 	Notwithstanding the foregoing, an Eligible Employee shall be
eligible to have Salary Deferrals credited on his behalf pursuant to Section
3.01(a) with respect to a particular Plan Year if, and only if, the Eligible
Employee’s Savings under the Savings Plan for that Plan Year have been suspended
due to the Statutory Compensation Limitations. An Eligible Employee shall be
notified of his eligibility for participation in the Plan prior to the date the
Eligible Employee may first commence participation in the Plan.

	 	(b)	 	Upon reemployment by the Company, an Employee shall become an Eligible Employee
again only upon completing the eligibility requirement described in Section 2.01(a) in
a calendar year ending after his reemployment date.

	2.02	 	Participation and Filing Requirements

	 	(a)	(i)	 	Subject to the following provisions of this Section, any Eligible Employee
who has met the eligibility requirements of Section 2.01(a)(i) in a Plan Year and who
wishes to have Salary Deferrals credited to his Deferral Account in that Plan Year
must, prior to the beginning of that Plan Year and before the close of the annual
enrollment period established by the Committee, execute a Salary Reduction Agreement
with respect to such Plan Year authorizing Salary Deferrals under this Plan in
accordance with the provisions of Section 3.01(a). Such Eligible Employee’s Salary
Reduction Agreement for a Plan Year shall become irrevocable on the date established by
the Committee, but not later than the last day of the calendar year preceding the Plan
Year in which such Salary is earned. Such Salary Reduction Agreement shall become
effective as of the first day of the Plan Year in which the Salary is earned. An
Eligible Employee may revoke or change the election on his Salary Reduction Agreement
with respect to a particular Plan Year at any time prior to the date the Salary
Reduction Agreement applicable to that Plan Year becomes irrevocable.

	 	(ii)	 	Notwithstanding the foregoing, any Employee who becomes an Eligible
Employee with respect to his first year of employment (or reemployment) pursuant
to the provisions of Section 2.01(a)(ii), and who wishes to have Salary
Deferrals credited to his Deferral Account in that Plan Year must, prior to the
close of the 30-day period following (i) the date of his employment or
reemployment, whichever is applicable,

 

 

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	 		 	or (ii) , if later,
the date he first becomes eligible to participate in the Savings Plan (or such
earlier date as determined by the Committee), execute a Salary Reduction
Agreement with respect to such Plan Year authorizing Salary Deferrals under this
Plan in accordance with the provisions of Section 3.01(a). Such Eligible
Executive’s Salary Reduction Agreement shall become irrevocable as of the close
of said 30-day period. The determination of whether an Eligible Employee may
file the Salary Reduction Agreement under this clause (ii) with respect to the
Plan Year in which he is employed (or reemployed) shall be determined in
accordance with the rules of Code Section 409A, including the provisions of
Treasury Regs. Section 1.409A-2(a)(7). The Salary Reduction Agreement
applicable to that Plan Year shall be effective only with respect to Salary
earned and payable after the date of the Committee’s receipt of said Salary
Reduction Agreement.

	 	(b)	 	The election made by an Eligible Employee pursuant to his Salary Reduction
Agreement shall remain in effect for subsequent Plan Years, provided the Member is an
Eligible Employee during such subsequent Plan Year and, with respect to Salary
Deferrals made pursuant to Section 3.01(a), the Eligible Employee’s Savings under the
Savings Plan for such Plan Year have been suspended due to the Statutory Compensation
Limitations. A Salary Reduction Agreement may be modified or revoked prospectively by
an Eligible Employee in accordance with the provisions of Section 2.01(a)(i) prior to
the date established by the Committee, but not later than the last day of the calendar
year preceding the Plan Year for which such modification or revocation is to be
effective. Notwithstanding the foregoing, if a Member’s Salary Deferral Agreement is
cancelled in accordance with Section 2.02(c), the Member will be required to file a new
Salary Deferral Agreement under this Section 2.02 in order to commence making Salary
Deferrals for any subsequent Plan Year.
	 
	 	(c)	 	Notwithstanding the foregoing, if a Member receives a hardship withdrawal of
elective deferrals from the Savings Plan or any other plan which is maintained by the
Company or an Associated Company and which meets the requirements of Section 401(k) of
the Code (or any successor thereof), the Member’s
Salary Reduction Agreement in effect
at that time shall be cancelled. Any Salary payment which would have been deferred
pursuant to that

 

 

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	 	 	 	Salary Reduction Agreement, but for the application of this Section 2.02(c), shall be paid to
the Member as if he had not entered into the Salary Reduction Agreement.
	 
	 	(d)	 	An Eligible Employee shall become a Member when contributions are credited on
his behalf pursuant to Article 3.

	2.03	 	Termination of Participation

	 	(a)	 	A Member’s participation in the Plan shall terminate when the vested values of
the Member’s Accounts under the Plan are totally distributed to, or on behalf of, the
Member.
	 
	 	(b)	 	Subject to the provisions of Section 3.01(e), a Member shall only be eligible
to have Salary Deferrals credited on his behalf in accordance with Section 3.01(a) for
as long as he remains an Eligible Employee.
	 
	 	(c)	 	Upon reemployment by the Company, a former Member shall become a Member again
only upon completing, subsequent to his reemployment, the eligibility and participation
requirements of Section 2.01 and 2.02, respectively.

 

 

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ARTICLE III — EXCESS SAVINGS PLAN CONTRIBUTIONS

	3.01	 	Amount of Contributions
	 
	 	 	For any Plan Year, the amount of contributions credited under the Plan on behalf of a Member
pursuant to this Article 3 shall be equal to the sum of the Salary Deferrals, Excess
Matching Contributions and Excess Floor Contributions determined under (a), (b) and (c)
below:

	 	(a)	 	Salary Deferrals
	 
	 	 	 	The amount of Salary Deferrals for each Plan Year shall be equal to the designated
percentage of Salary elected by the Member in his Salary Reduction Agreement, provided
that the allocation under the Plan and the reduction in the Eligible Employee’s Salary
corresponding to such election shall be made only with respect to Salary that is
otherwise earned and payable to such Member during the Plan Year in excess of the
Statutory Compensation Limitation.
	 
	 	 	 	Unless otherwise permitted by the Committee, the designated percentage elected by the
Member in his Salary Reduction Agreement for a Plan Year must be a uniform percentage,
equal to either zero (0%) percent or six (6%) percent, of his Salary. The total
Salary Deferral amount elected for a Plan Year shall reduce the Member’s Salary earned
and otherwise payable in that Plan Year, and shall not be applied against any amount
deferred under any other nonqualified plan maintained by the Company.
	 
	 	(b)	 	Excess Matching Contributions
	 
	 	 	 	The amount of Excess Matching Contributions for each Plan Year shall be equal to fifty
(50%) percent of the Salary Deferrals by the Member for such Plan Year, and shall be
credited to the Member’s Matching Contribution Account at the same time as the Salary
Deferrals to which they relate.
	 
	 	(c)	 	Excess Floor Contributions
	 
	 	 	 	With respect to each Plan Year in which Salary Deferrals are made on a Member’s behalf
pursuant to paragraph (a) above, Excess Floor Contributions shall be credited on
behalf of the Member equal to the result of (i) minus (ii) as follows:

 

 

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	 	(i)	 	an amount equal to one half of one percent of the Member’s Salary
for the Plan Year, minus
	 
	 	(ii)	 	the amount of Floor Company Contribution (as that term is defined
under the Savings Plan) made by the Company on behalf of the Member under the
Savings Plan for such Plan Year and allocated to the Member’s account under the
Savings Plan in such Plan Year.

	 	(d)	 	The contributions credited on a Member’s behalf pursuant to paragraphs (a), (b)
and (c) above shall be credited to a Member’s Accounts at the same time as they would
have been credited to his accounts under the Savings Plan if not for the application of
the Statutory Compensation Limitations.
	 
	 	(e)	 	Notwithstanding any provisions of the Plan to the contrary, if a Member ceases
to be an Eligible Employee after the date a Salary Deferral Agreement for a Plan Year
becomes effective but continues to be employed by the Company or an Associated Company,
he shall continue to be a Member and his Salary Reduction Agreement for such Plan Year
shall remain in effect for the remainder of such Plan Year, and if he is eligible to
participate in the Savings Plan for the remainder of such Plan Year, Excess Floor and
Excess Matching Contributions, if applicable, shall be made for that Plan Year.
However, such Member shall not be eligible to defer any Salary earned in a subsequent
year until such time as he once again becomes an Eligible Employee.

	3.02	 	Investment of Accounts
	 
	 	 	A Member shall have no choice or election with respect to the investments of his Accounts.
As of each Reporting Date, there shall be credited or debited an amount of earnings or
losses on the balance of the Member’s Accounts as of such Reporting Date which would have
been credited had the Member’s Accounts been invested in the Stable Value Fund maintained
under the Savings Plan.

 

 

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	3.03	 	Vesting of Accounts

	 	(a)	 	The Member shall be fully vested in the Salary Deferrals and Excess Floor
Contributions (and earnings thereon) made on his behalf under Section 3.01(a) and (c)
respectively. The Member shall vest in the Excess Matching Contributions made on his
behalf under Section 3.01(b) (and earnings thereon) at the same rate and under the same
conditions at which such contributions would have vested under the Savings Plan had
they been contributed thereunder.
	 
	 	 	 	In the event the Member incurs Termination of Employment prior to
vesting in all or any part of the Excess Matching Contributions credited on his
behalf, such contributions and earnings thereon shall be forfeited and shall not
be restored in the event the Member is subsequently reemployed by the Company or
an Associated Company.
	 
	 	(b)	 	Notwithstanding any provision of this Plan to the contrary, in the event of an
Acceleration Event, each Member who is employed by the Company or an Associated Company
as of the consummation of the Acceleration Event shall become fully vested in the
Excess Matching Contributions made on his behalf under Section 3.01(b) (and earnings
thereon).

	3.04	 	Individual Accounts

	 	(a)	 	The Committee shall maintain, or cause to be maintained, on the book of the
Corporation records showing the individual balances of each Member’s Accounts (or
subaccounts). At least once a year, each Member shall be furnished with a statement
setting forth the value of his Accounts.
	 
	 	(b)	 	Accounts established under this Plan shall be hypothetical in nature and shall
be maintained for bookkeeping purposes only so that hypothetical earnings or losses on
the amounts credited on a Member’s behalf under this Plan can be credited or debited,
as the case may be.

 

 

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	3.05	 	Valuation of Accounts

	 	(a)	 	The Committee shall value or cause to be valued each Member’s Accounts at least
quarterly. On each Reporting Date there shall be allocated to the Accounts of each
Member the appropriate amount determined in accordance with Section 3.02.
	 
	 	(b)	 	Whenever an event requires a determination of the value of a Member’s Accounts,
the value shall be computed as of the Reporting Date immediately preceding the date of
the event, except as otherwise specified in this Plan.

 

 

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ARTICLE IV — PAYMENT OF CONTRIBUTIONS

	4.01	 	Commencement of Payment

	 	(a)	 	Except as otherwise provided below, a Member shall be entitled to receive
payment of his Deferral Account and his Floor Contribution Account and the vested
portion of his Matching Contribution Account as determined under Section 3.03 upon his
Termination of Employment with the Company and all Associated Companies for any reason,
other than death. The distribution of such Accounts shall be made in the seventh month
following the date the Member’s Termination of Employment occurs.
	 
	 	(b)	 	In the event of the death of a Member prior to the full payment of his
Accounts, the unpaid portion of his Accounts shall be paid to his Beneficiary in the
month following the month in which the Member’s date of death occurs.

	4.02	 	Method of Payment
	 
	 	 	With respect to a Member who incurs a Termination of Employment on or after January 1, 2008,
payment of such Member’s Deferral Account and his Floor Contribution Account and the vested
portion of his Matching Contribution Account shall be made in a single lump sum payment.
	 
	4.03	 	Payment upon the Occurrence of a Change in Control
	 
	 	 	Upon the occurrence of a Change in Control, all Members shall automatically receive the
balance of their Deferral Account and Floor Contribution Account and the vested portion of
their Matching Contribution Account in a single lump sum payment. Such lump sum payment
shall be made within 90 days of the date the Change in Control occurs. If the Member dies
after such Change in Control, but before receiving such payment, it shall be made to his
Beneficiary.

 

 

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ARTICLE V — GENERAL PROVISIONS

	5.01	 	Funding
	 
	 	 	All amounts payable in accordance with this Plan shall constitute a general unsecured
obligation of the Corporation. Such amounts, as well as any administrative costs relating
to the Plan, shall be paid out of the general assets of the Corporation.
	 
	5.02	 	No Contract of Employment
	 
	 	 	The Plan is not a contract of employment and the terms of employment of any Member shall not
be affected in any way by this Plan or related instruments, except as specifically provided
therein. The establishment of the Plan shall not be construed as conferring any legal
rights upon any person for a continuation of employment, nor shall it interfere with the
rights of the Company or an Associated Company to discharge any person and to treat him
without regard to the effect which such treatment might have upon him under this Plan. Each
Member and all persons who may have or claim any right by reason of his participation shall
be bound by the terms of this Plan and all agreements entered into pursuant thereto.
	 
	5.03	 	Unsecured Interest
	 
	 	 	Neither the Corporation nor the Board of Directors nor the Committee in any way guarantees
the performance of the investment fund designated under Section 3.02. No special or
separate fund shall be established, and no segregation of assets shall be made, to assure
the payments thereunder. No Member hereunder shall have any right, title, or interest
whatsoever in any specific assets of the Corporation. Nothing contained in this Plan and no
action taken pursuant to its provisions shall create or be construed to create a trust of
any kind or a fiduciary relationship between the Corporation and a Member or any other
person. To the extent that any person acquires a right to receive payments under this Plan,
such right shall be no greater than the right of any unsecured creditor of the Corporation.
	 
	5.04	 	Facility of Payment
	 
	 	 	In the event that the Committee shall find that a Member is unable to care for his affairs
because of illness or accident or is a minor or has died, the Committee may direct that any
benefit payment due him, unless claim shall have been made therefore by a duly appointed
legal representative, be paid on his behalf to his spouse, a child, a parent or other blood
relative, or to a

 

 

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	 	 	person with whom
he resides, and any such payment so made shall thereby be a complete discharge of the
liabilities of the Corporation and the Plan for that payment.
	 
	5.05	 	Withholding Taxes
	 
	 	 	The Company or an Associated Company shall have the right to deduct from each payment to be
made under the Plan any required withholding taxes.
	 
	5.06	 	Nonalienation
	 
	 	 	Subject to any applicable law, no benefit under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any
attempt to do so shall be void, nor shall any such benefit be in any manner liable for or
subject to garnishment, attachment, execution or levy, or liable for or subject to the
debts, contracts, liabilities, engagements or torts of a person entitled to such benefits.
	 
	5.07	 	Transfers

	 	(a)	 	In the event the Corporation (i) sells, causes the sale of, or sold the stock
or assets of any employing company in the controlled group of the Corporation to a
third party or (ii) distributes or distributed to the holders of shares of the
Corporation’s common stock all of the outstanding shares of common stock of a
subsidiary or subsidiaries of the Corporation, and, as a result of such sale or
distribution, such company or its employees are no longer eligible to participate
hereunder, the liabilities with respect to the benefits accrued under this Plan for a
Member who, as a result of such sale or distribution, is no longer eligible to
participate in this Plan, shall, at the discretion and direction of the Corporation
(and approval by the new employer), be transferred to a similar plan of such new
employer and become a liability thereunder. Upon such transfer (and acceptance
thereof) the liabilities for such transferred benefits shall become the obligation of
the new employer and the liability under this Plan for such benefits shall cease.
	 
	 	(b)	 	Notwithstanding any Plan provision to the contrary, at the discretion and
direction of the Corporation, liabilities with respect to benefits accrued by a Member
under a plan maintained by such Member’s former employer may be transferred to this
Plan and upon such transfer become the obligation of the Corporation.

 

 

Page 16

	5.08	 	Claims Procedure

	 	(a)	 	Submission of Claims
	 
	 	 	 	Claims for benefits under the Plan shall be submitted in writing to the Committee or
to an individual designated by the Committee for this purpose.
	 
	 	(b)	 	Denial of Claim
	 
	 	 	 	If any claim for benefits is wholly or partially denied, the claimant shall be given
written notice within 90 days following the date on which the claim is filed, which
notice shall set forth

	 	(i)	 	the specific reason or reasons for the denial;
	 
	 	(ii)	 	specific reference to pertinent Plan provisions on which the denial
is based;
	 
	 	(iii)	 	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
	 
	 	(iv)	 	an explanation of the Plan’s claim review procedure, including.
information as to the steps to be taken if the claimant wishes to submit the
claim for review and the time limits for requesting a review.

	 	 	 	If special circumstances require an extension of time for processing the claim,
written notice of an extension shall be furnished to the claimant prior to the end of
the initial period of 90 days following the date on which the claim is filed. Such an
extension may not exceed a period of 90 days beyond the end of said initial period.
	 
	 	 	 	If the claim has not been granted and written notice of the denial of the claim is not
furnished within 90 days following the date on which the claim is filed, the claim
shall be deemed denied for the purpose of proceeding to the claim review procedure.

 

 

Page 17

	 	(c)	 	Claim Review Procedure
	 
	 	 	 	The claimant or his authorized representative shall have 60 days after receipt of
written notification of denial of a claim to request a review of the denial by making
written request to the Committee, and may review pertinent documents and submit issues
and comments in writing within such 60-day period.
	 
	 	 	 	Not later than 60 days after receipt of the request for review, the Committee (or the
committee designated by the Company to hear such appeals, the “Appeals Committee)
shall render and furnish to the claimant a written decision, which shall include
specific reasons for the decision and shall make specific references to pertinent Plan
provisions on which it is based. If special circumstances require an extension of
time for processing, the decision shall be rendered as soon as possible, but not later
than 120 days after receipt of the request for review, provided that written notice
and explanation of the delay are given to the claimant prior to commencement of the
extension. Such decision by the Appeals Committee shall not be subject to further
review. If a decision on review is not furnished to a claimant within the specified
time period, the claim shall be deemed to have been denied on review.
	 
	 	(d)	 	Exhaustion of Remedy
	 
	 	 	 	No claimant shall institute any action or proceeding in any state or federal court of
law or equity or before any administrative tribunal or arbitrator for a claim for
benefits under the Plan until the claimant has first exhausted the procedures set
forth in this section.

	5.09	 	Compliance

	 	 	 	The Plan is intended to comply with the requirements of Code Section 409A and the provisions
hereof shall be interpreted in a manner that satisfies the requirements of Code Section 409A
and the regulations thereunder, and the Plan shall be operated accordingly. If any
provision of the Plan would otherwise frustrate or conflict with this intent, the provision
will be interpreted and deemed amended so as to avoid this conflict. The Plan has been
administered in good faith compliance with Section 409A and the guidance issued thereunder
from January 1, 2005 through December 31, 2008.

 

 

Page 18

	5.10	 	Acceleration of or Delay in Payments
	 
	 	 	The Committee, in its sole and absolute discretion, may elect to
accelerate the time or form of payment of a benefit owed to the
Member hereunder, provided such acceleration is permitted under
Treas. Regs. Section 1.409A-3(j)(4). The Committee may also, in its
sole and absolute discretion, delay the time for payment of a benefit
owed to the Member hereunder, to the extent permitted under Treas.
Regs. Section 1.409A-2(b)(7).
	 
	5.11	 	Construction

	 	(a)	 	The Plan is intended to constitute an unfunded deferred compensation
arrangement maintained for a select group of management or highly compensated employees
within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA, and all
rights under this Plan shall be governed by ERISA. Subject to the preceding sentence,
the Plan shall be construed, regulated and administered in accordance with the laws of
the State of New York, to the extent such laws are not superseded by applicable federal
laws.
	 
	 	(b)	 	The masculine pronoun shall mean the feminine wherever appropriate.
	 
	 	(c)	 	The illegality of any particular provision of this document shall not affect
the other provisions and the document shall be construed in all respects as if such
invalid provision were omitted.
	 
	 	(d)	 	The headings and subheadings in the Plan have been inserted for convenience of
reference only and are to be ignored in any construction of the provisions thereof.

 

 

Page 19

ARTICLE VI — AMENDMENT OR TERMINATION

	6.01	 	Right to Terminate
	 
	 	 	Notwithstanding any Plan provision to the contrary, the Corporation may, by action of the
Board of Directors, terminate this Plan and the related Deferral Agreements at any time. To
the extent consistent with the rules relating to Plan terminations and liquidation in
Treasury Regulations Section 1.409A-3(j)(4)(ix) or otherwise consistent with Code Section
409A, the Corporation may provide that each Member or Beneficiary shall receive a single sum
payment in cash equal to the balance of the Member’s Accounts. The single sum payment shall
be made within 90 days following the date the Plan is terminated and shall be in lieu of any
other benefit which may be payable to the Member or Beneficiary under this Plan. Unless so
distributed, in the event of a Plan termination, the Corporation shall continue to maintain
the Deferral Account, the Floor Contribution Account and the Matching Contribution Account
until distributed pursuant to the terms of the Plan.
	 
	6.02	 	Right to Amend
	 
	 	 	The Board of Directors or its delegate may amend or modify this Plan and the related
Deferral Agreements in any way either retroactively or prospectively. However, except that
without the consent of the Member or Beneficiary, if applicable, no amendment or
modification shall reduce or diminish such person’s right to receive any benefit accrued
hereunder prior to the date of such amendment or modification, and after the occurrence of
an Acceleration Event, no modification or amendment shall be made to Sections 3.03(b) and
4.03.

 

 

Page 20

ARTICLE VII — ADMINISTRATION

	7.01	 	Administration

	 	(a)	 	The Committee shall have the exclusive responsibility and complete
discretionary authority to control the operation, management and administration of the
Plan, with all powers necessary to enable it properly to carry out such
responsibilities, including, but not limited to, the power to interpret the Plan and
any related documents, to establish procedures for making any elections called for
under the Plan, to make factual determinations regarding any and all matters arising
hereunder, including, but not limited to, the right to determine eligibility for
benefits, the right to construe the terms of the Plan, the right to remedy possible
ambiguities, inequities, inconsistencies or omissions, and the right to resolve all
interpretive, equitable or other questions arising under the Plan. The decisions of
the Committee on all matters shall be final, binding and conclusive on all persons to
the extent permitted by law.
	 
	 	(b)	 	To the extent permitted by law, all agents and representatives of the Committee
shall be indemnified by the Corporation and held harmless against any claims and the
expenses of defending against such claims, resulting from any action or conduct
relating to the administration of the Plan, except claims arising from gross
negligence, willful neglect or willful misconduct.EX-10.31

Exhibit 10.31

Personal and Confidential

	 	 	 
	Date:

	 	February 20, 2009
	 
	 	 
	To:

	 	Vincent A. Maffeo, Senior Vice President & General Counsel, ITT Corporation
	 
	 	 
	From:

	 	Scott A. Crum, Senior Vice President and Director Human Resources, ITT Corporation
	 
	 	 
	Subject:

	 	Transition Memorandum

The purpose of this Transition Memorandum (the “Memorandum”) is to confirm our understanding
regarding your severance and retirement arrangements, and your separation from active employment
from ITT Corporation and its affiliates (ITT) as set forth in this Memorandum and under the terms
of the ITT Senior Executive Severance Pay Plan (the “Senior Plan”). The terms of this Memorandum
have been reviewed and approved by the Compensation and Personnel Committee of the ITT Board of
Directors and the Company has been authorized to execute and perform in accordance with the
aforesaid terms. We further agree that the terms of this Memorandum will govern your retirement
arrangements and separation, notwithstanding the terms of any other benefit plan in which you
participate, except that your rights under the Company’s qualified pension plans [including the ITT
Salaried Investment & Savings Plan and the ITT Salaried Retirement Plan (the “Qualified Plans”)]
will be governed by the terms of the applicable plan, except as otherwise specifically noted
herein. A copy of the Senior Plan is attached. Upon the execution of the attached Release and
expiration of the review and revocation period set forth in the Separation Agreement and General
Release of Claims (“Release”) to which this Memorandum is attached and incorporated by reference
therein, ITT agrees to make the payments and provide the benefits to you as set forth herein.

Expiration of Service and Severance Arrangements

Expiration of Service — You will continue to be employed as an active, full time employee through
July 31, 2009 (the “Active Service Termination Date”), at which time your active service shall
terminate. You will be paid your current annual base salary of $476,000 through the Active Service
Termination Date, in accordance with the Company’s standard payroll practices, procedures and
dates. In addition, subject to the terms and conditions of this Memorandum, you and your
dependants will continue to participate in all applicable ITT benefit plans through the Active
Service Termination Date and as described herein. You will resign as an officer of ITT and as a
director or officer of any subsidiary or affiliate of ITT, effective July 31, 2009.

Severance Pay – You are eligible for 24 months of severance payments under the terms of the Senior
Plan. Following your Active Service Termination Date of July 31, 2009, you will receive 24 months
of severance payments through July 31, 2011 ( the “Severance End Date”). ITT will make these
payments in the form of severance pay on the regular payroll schedule (currently bi-weekly) through
the period set forth above. You will continue to be paid your current annual base salary of
$476,000 throughout the severance period,

 

 

provided you have not become eligible for disability payments on or prior to your Active Service
Termination Date. In the event you become disabled on or prior to your Termination Date, your
entitlement to any short-term disability and/or long-term disability benefits shall be determined
in accordance with the applicable short-term or long-term disability plans and the treatment of any
such benefits in coordination with the above payments will be in accordance with the terms of such
disability plans and the Senior Plan. ITT agrees that it will not exercise any rights that it has
under the Senior Plan to pay any remainder of severance pay as a discounted lump sum. You will not
be entitled to receive any other pay or any other compensation from ITT except as described in this
Memorandum. In the event ITT determines that you are an individual described in Section 416(i) ITT
will not make any of the required severance payments for the first six months, and will make seven
payments on the first day of the 7th month in accordance with Treas. Reg. section
1.409A-3(i)(2)(ii).

Except as specifically set forth in this letter, for purposes of the various benefit, equity and
incentive plans discussed in this Memorandum (other than the Qualified Plans and the ITT Deferred
Compensation Plan), your separation date will be deemed to be the earlier of (i) the Severance End
Date or (ii) the date of your engaging in any disqualifying conduct as defined in the Senior Plan
(referred to hereinafter as the “Severance End Date”), except that it is agreed that ITT shall not
unreasonably deny any specific request that work for a competitor not be deemed a disqualifying
event.

For purposes of paragraph 9 of the Senior Plan, the decision as to whether you have engaged in
disqualifying conduct shall be as reasonably determined by the ITT Senior Vice President, Director
Human Resources and, in the event that such a determination is made, you will be given reasonable
notice and opportunity to cure any such alleged disqualifying conduct, prior to any decision by ITT
to terminate your severance pay. Notwithstanding anything to the contrary, any dispute in
connection with disqualifying conduct is subject to final and binding resolution pursuant to
Paragraph 11 of the Separation Agreement And General Release of Claims.

Responsibilities – Until the Active Service Termination Date, you will work with the Chief
Executive Officer and the SVP and Director Human Resources to transition responsibilities and you
will provide such assistance with other matters as they may reasonably request consistent with past
responsibilities. If a new General Counsel begins employment at the Company prior to the Active
Service Termination Date, you will continue as Senior Vice President, ITT and Director of
Legal/Regulatory Affairs, reporting directly to the Chairman, President, and CEO of ITT. In that
capacity, you will continue to support the transition, and may work from remote and off-site
locations on mutually agreeable special assignments. The new General Counsel will not report to you
in your new role.

Annual Incentive (Bonus)

You will receive a full annual incentive award under the ITT Annual Incentive Plan for performance
year 2008 based on twelve months of active service in 2008, subject to Company performance and
approval by the Compensation and Personnel Committee of the ITT Board of Directors (the
“Committee”). Your bonus will be no less than the calculated target as per the program parameters
(i.e. $476,000 multiplied by 70%, then multiplied by the approved performance payout factor for ITT
Headquarters, subject to review and approval by the Committee.) You will also receive a full bonus
for performance year 2009, prorated by the number of months of active service during 2009 through
the Active Service Termination Date (i.e. 7) in accordance with the formula set out above, subject
to review by the Committee.

Stock Option Awards

Until your Severance End Date, you may exercise your stock options to the extent they are currently
exercisable or become exercisable prior to the Severance End Date (provided that no stock option
shall be exercisable beyond its original full term). For purposes of calculating the vesting of
your options and the

2

 

exercise periods therefore, your employment period shall be deemed to continue until the Severance
End Date.

Grants Prior to 2006 under the 2003 Equity Incentive Plan:

	 	Ø 	 	Options granted to you prior to March 8, 2005 are fully exercisable and will remain
exercisable through the expiration date of the applicable option.
	 
	 	Ø	 	 Options granted on March 8, 2005 are fully vested and exercisable through March 8,
2012, the option expiration date.

2006 Stock Option Grants : 

	 	Ø	 	 Options granted to you on March 6, 2006 are subject to cliff vesting on March 6, 2009.
These options will be fully exercisable until the expiration date of the option (March 6,
2013).

2007 and 2008 Stock Option Grants : 

	 	Ø	 	Options granted to you on March 7, 2007 and March 10, 2008 are subject to cliff vesting
on March 7, 2010 and March 10, 2011 respectively. These dates are prior to the Severance
End Date. The vested portion of each option will be exercisable until the earlier of
their expiration dates or the date five years after termination of your employment (the
Severance End Date.)

If the option is not vested on the Severance End Date, then a prorated portion will immediately
vest upon the Severance End Date. The remaining portion will be forfeited.

The exercise of your options will be in accordance with the terms of the ITT 1994 Incentive Stock
Plan and the 2003 Equity Incentive Plan, as applicable, and any applicable Administrative Rules and
Regulations in effect at the time of exercise.

Six months after the Active Service Termination Date, you will no longer be subject to the
requirement for prior approval before the purchase or sale of ITT stock. You may continue to clear
any transaction with respect to such stock with the Company’s legal department. You are also
subject to the securities laws and ITT’s “insider trading” policies in respect of any transaction
you effect while in possession of material non-public information regarding ITT stock.

Restricted Stock Awards

	 	Ø	 	Your 2006 restricted stock award of 3793 shares awarded on March 6, 2006 is subject to
cliff vesting on March 6, 2009.
	 
	 	Ø	 	Your 2007 and 2008 restricted stock awards of 3671 shares and 3869 shares respectively,
are subject to cliff vesting on March 7, 2010 and March 10, 2011 respectively. These
dates are prior to the Severance End Date and these awards will fully vest according to
their terms.

You will receive unrestricted shares as of the vesting dates. The receipt of shares under these
awards are subject to your payment to the company of any taxes due with respect to those shares.

Long-Term Incentive Plan (TSR Awards)

You will be eligible to receive payment for your outstanding 2007 and 2008 TSR awards, following
the completion of the applicable performance periods. Such payment, if any, will be based on the
number of full months of employment and full months after the Active Service Termination Date but
before the Severance End Date, and any payment for these awards will be prorated on that basis over
the 36-month

3

 

performance period. Accordingly, any payment for your outstanding target TSR awards will be
calculated as follows:

	 	Ø	 	 2007 Target Award of $450,000. Your final payment value, if any, will be
prorated, calculated on the basis of the number of months of active employment plus full
months after the Active Service Termination Date but before the Severance End Date, during
the 36-month performance period ending December 31, 2009. (Based on the dates
incorporated in this Memorandum, you should receive a full payout for this award.)
	 
	 	Ø	 	 2008 Target Award of $450,000. Your final payment value, if any, will be
prorated, calculated on the basis of the number of months of active employment plus full
months after the Active Service Termination Date but before the Severance End Date, during
the 36-month performance period ending December 31, 2010. (Based on the dates
incorporated in this Memorandum, you should receive a full payout for this award.)

Notwithstanding the foregoing, the 2007 and 2008 TSR Awards will be paid no earlier than six
months after the Active Service Termination Date.

The ultimate value, if any, of your outstanding TSR awards will be determined based on ITT’s TSR
performance at the end of the performance periods as measured against the S&P Industrials and
approved by the Compensation and Personnel Committee of the Board of Directors. Further, the
terms of the ITT 1997 Long-Term Incentive Plan shall prevail, including any acceleration of
payments made under applicable provisions of any relevant plan.

Vacation

You will receive a lump-sum payment for any unused vacation for 2009. Payment, if any, will be
made following your Active Service Termination Date. Please note that payment for unused vacation
will not count for any purpose under any employee benefit plan. You will not be eligible for any
vacation for the year 2010 or after.

Automobile Allowance

You will continue to receive your current automobile allowance until your Severance End Date.

Public Announcement

We will mutually agree on the terms of any public announcement relating to your transition or
departure, including any announcement of the hiring or appointing of a new General Counsel.

Miscellaneous

You will be entitled to full secretarial support for the entire year 2009, and reasonable
secretarial assistance from time to time thereafter until the Severance End Date. You may remain
on the Company e-mail system through July 31, 2010.

ITT hereby conveys to you as of the Active Service Termination Date, and you may retain as your
personal property, your Company provided computer and Blackberry. Prior to the Active Service
Termination Date, you will arrange for an ITT representative in White Plains to delete all ITT data
not necessary for continued e-mail access, and leave on the laptop only those programs and data
that ITT is permitted to transfer to you at no cost and in compliance with applicable law.

4

 

In lieu of outplacement, and to cover normal and customary costs associated with your transition,
the Company will pay you an additional $50,000 to defray those costs. This payment will be made in
a lump sum following your Active Service Termination Date and is subject to normal withholding.

Benefit Plans

Benefit Plan Eligibility — During the active service period and until the Severance End Date, your
eligibility for certain employee benefit plans shall be as outlined in subsequent paragraphs of
this Memorandum, subject to the actual terms of the specific plans as contained in the various plan
documents. You will not be entitled to any benefits or perquisites not specifically covered in
this Memorandum. In the event of revisions to any or all of the subject plans, your benefits will
not be diminished except in accordance with the changes that are generally applicable to all
similarly-situated plan participants.

Salaried Retirement Plan and Excess Pension Plan — You are eligible to participate in these plans
during the active service period but not thereafter. ITT agrees that for purposes of the Salaried
Retirement Plan you may opt to take early retirement benefits at any time after the Active Service
Termination Date, and those benefits will be calculated in accordance with the normal early
retirement provisions of the Plan. For purposes of the Excess Pension Plan, you must commence your
non-grandfathered benefits as soon as you are retirement eligible in accordance with Treas. Reg.
section 1.409A-3(i) (2)(ii). You may commence your benefit payment for the qualified portion of
your benefit as of your Active Service Termination Date or thereafter. Such distribution
commencement date may, but need not, coincide with the payment date of your benefits under the
non-qualified Excess Pension Plan. You have elected a lump sum distribution for the Excess portion
of your benefit, which the Company agrees will be calculated using whichever allowable interest
rate for discounting purposes and other factors (i.e. life expectancy etc.) are the most favorable
to the employee. Such lump sum payment may be subject to a six -month delay in order to comply with
certain IRS regulations.

Investment and Savings Plan and Excess Savings Plan — You are eligible to participate in the
Investment and Savings Plan and in the Excess Savings Plan during the active service period but not
thereafter. Six months after your Active Service Termination Date, the restrictions on certain
Plan transactions will no longer apply and you will be able to make transactions through the ITT
Benefits Center (telephone: 866-488-4889 or at www.benefitsweb.com/itt.html) without the
requirement for prior approval before changing investment funds. The distributions from the Excess
Savings Plan may be subject to a six month delay in order to comply with certain IRS Regulations.

Insurance Plans

Medical and Dental Insurance and Vision Care Plan — You are eligible to continue coverage under the
same terms as an active employee until the Severance End Date. You and your eligible dependants
shall be eligible for continued coverage under ITT’s retiree health plan under the same terms as
other retirees anytime after your Severance End Date.

Group Life Insurance – Your life insurance under the ITT Salaried Life Insurance Plan will continue
through the last day of the month in which you remain an active employee. At the end of such
period, you will be eligible to convert the remainder without a medical examination, providing you
do so within 31 days of the end of coverage. Accidental Death and Dismemberment Insurance under
the ITT Salaried Life Insurance Plan ceases on July 31, 2009.

ITT Group Accident Insurance Program for Officers and Directors — You will be covered under this
Program through the Active Service Termination Date. You will continue during this period to be
eligible for the non-contributory portion of this coverage and for any additional optional coverage
you may have purchased.

5

 

Life Plus — You are eligible to continue your coverage under Life Plus during the active service
period but not thereafter. At the end of such period, you may maintain all or part of your Life
Plus coverage by requesting direct billing of premiums from Marsh@WorkSolutions, the Program
Administrator, at 1-800-552-9665.

Short-Term Disability and Long-Term Disability Insurance — Coverage under these plans ceases on the
Active Service Termination Date.

Deferred Compensation Plan —  You are a participant in this plan. Distributions shall be governed
by the terms of the plan and the elections you have made.

Long Term Care Plan —  If you or your spouse are currently enrolled in the ITT Long Term Care Plan,
this coverage will continue during the Severance Pay period for as long as your normal active
premium contributions continue to be deducted from your Severance Pay. At the end of your
Severance Pay period, this coverage can be ported to an outside billing arrangement if you so
choose. Please call John Hancock directly at 1–888–216–5054 to set up the transfer from a payroll
deduction to an individual billing process prior to your Severance End Date.

Flexible Spending Account Plan —  If you are currently enrolled in this program, you can continue
to participate in the Flexible Spending Account Plan during the calendar year in which your
Severance Pay period began. Therefore, you are eligible to continue participation in this plan
until December 31, 2009. You will not be eligible to enroll for 2010.

Special Senior Executive Severance Pay Plan

During the active service period you will continue to be covered under the ITT Special Senior
Executive Severance Pay Plan (“Special Severance Plan”) in accordance with and subject to the terms
of said Plan. Accordingly, notwithstanding anything to the contrary herein, or in the Special
Severance Plan, if an Acceleration Event (as defined in the Special Severance Plan) shall occur on
or before the Active Service Termination Date, you will be deemed to be a full-time, regular
salaried employee of ITT in Band A whose employment is terminated by the company other than for
Cause, or who has terminated employment for Good Reason (as “Cause” and “Good Reason” are defined
in the Special Severance Plan). Hence, if an Acceleration Event occurs on or before the Active
Service Termination Date, you will be entitled to all of the benefits provided in the Special
Severance Plan for special severance executives in Band A, subject to offset as provided below.
Any severance payments and any other severance benefits to which you may be entitled pursuant to
the Special Severance Plan shall be subject to offset by the severance payments and other severance
benefits provided pursuant to this Memorandum, such offset to be in accordance with and subject to
the terms of “Offset” Paragraph 10 of the Special Severance Plan.

Tax Preparation and Financial Planning

You will be eligible for Financial Planning Assistance, which includes the Executive Tax Program,
through tax year 2011; reimbursement for 2009, 2010, and 2011 tax preparation work to be available
in 2010, 2011, and 2012 in accordance with the terms of the Program to be paid by the company in
accordance with its usual practice. The company will not take any action which is intended to deny
you continuing access to the Financial Planning Assistance for future years beyond 2011 at your own
cost. Any reimbursement made pursuant to this paragraph for fees under the Executive Tax Program
and/or fees for Financial

6

 

Planning Assistance through tax year 2011 will be fully grossed-up for federal, state and local tax
purposes, including income tax purposes.

Payroll Deductions

To the extent applicable, payroll deductions and benefit plan elections currently authorized by
you, as well as appropriate tax withholding, will continue during the active service period. If
you wish to change the deductions or an election at any time during the active service period,
please contact the Human Resources or Payroll departments.

Annual Physical and Health 

You will be eligible for company-paid annual physical examinations at a facility of your own
choosing, through 2011. You may avail yourself of a Company reimbursed health club membership in
accordance with the Company’s executive plan, if the plan is continued, through 2011.

Death 

In the event of your death prior to the completion and/or termination of all payments and benefits
hereunder, such payments and benefits will be continued

in accordance with this Memorandum, and any payments and benefits payable upon your death under the
terms of any applicable benefit plan shall be promptly made to your estate, except for any benefit
for which you have filed with ITT a designation of a named beneficiary other than your estate.

(You are encouraged to review this Memorandum and the attached Release with an attorney of your own
choosing, with the fee to be reimbursed by ITT. with an appropriate tax “gross-up” if necessary to
account for federal, state and local taxes, including income taxes. ITT acknowledges that you
personally have not acted as Counsel or Legal Advisor to the Company in connection with any of the
matters set forth herein, and that the Company has not relied on your advice in agreeing to the
terms of this Memorandum and Release. )

The parties hereby indicate their agreement with the terms and conditions of this Memorandum and
the attached Release by signing and dating this Memorandum in the space provided below.

EMPLOYEE: Vincent A. Maffeo

	 	 	 
	/s/ Vincent A. Maffeo
 

Employee’s Signature

	 	 

STATE OF NEW YORK

          )

COUNTY OF WESTCHESTER ss:

Subscribed
and sworn before me this 23rd day

of February, 2009.

	 	 	 
	/s/ Peter A. Timpano Jr
	PETER A. TIMPANO JR 
	Notary Public, State of New York

No. 01TI6090883

Qualified in Westchester County

Commission Expires  April 21, 2011 
	 

7

 

EMPLOYER: ITT Corporation

/s/ Scott A. Crum

Scott A. Crum, Senior Vice President and Director, Human Resources

STATE OF NEW YORK          )

     )

COUNTY OF WESTCHESTER     ss:

Subscribed
and sworn before me this 23rd day

of February, 2009.

	 	 	 
	/s/ Peter A. Timpano Jr
	PETER A. TIMPANO JR 
	Notary Public, State of New York

No. 01TI6090883

Qualified in Westchester County

Commission Expires  April 21, 2011 
	 

8

 

Separation Agreement and General Release of Claims

The Separation Agreement and General Release (“Release”) is made and entered into by and between
ITT Corporation (“ITT” or the “Company”) and Vincent A. Maffeo (referred to herein in the first
person). In consideration of the mutual promises contained herein, it is mutually agreed as
follows:

	1.	 	I will be employed with ITT for the active service period set forth in the Transition
Memorandum entered into between ITT and myself (the “Memorandum”), to which this Release is
attached and incorporated by reference. After my active service period ends, I will receive
severance payments for 24 months based on my annual base salary of $476,000 and the other
benefits and commitments described in the Memorandum, subject to the terms and conditions set
forth in the Memorandum.
	 
	2.	 	I agree to the following:

	 	(a)	 	I am not eligible and will not receive any compensation, fringe benefits or
employee benefits or any pay in lieu of notice or any severance or termination pay
except as provided in the Memorandum. I agree and acknowledge that the pay set forth in
the Memorandum is good and sufficient consideration for all of my promises, obligations,
and covenants set forth in the Memorandum and in this Release.
	 
	 	(b)	 	On behalf of myself and my heirs, executors, administrators, personal and legal
representatives, successors and assigns (“Releasors”), I waive, release and forever
discharge ITT, its current and former subsidiaries, affiliates, divisions and related
entities and their predecessors, successors and assigns, and all of their past and
present officers, directors, shareholders, agents, representatives, administrators,
employees, and benefit plans (collectively “Releasees”) from any and all claims,
demands, debts, liabilities, obligations, expenses (including attorney’s fees and
costs), promises, covenants, controversies, grievances, claims, suits, actions or causes
of action, in law or in equity, known or unknown to me, foreseen or unforeseen,
contingent or not contingent, liquidated or not liquidated, which I may have had in the
past, may have now, or may in the future claim to have against Releasees arising with
respect to any incident, event, act or omission related to my employment by the Company
occurring at any time prior to my signing of this Release. This Release shall not
operate as a release or waiver of claims or rights that may arise after the date of its
execution, for vested benefits, for indemnification pursuant to Company policy or
applicable law, for coverage under any directors’ and officers’ personal liability or
any fiduciary liability, insurance policy in accordance with the terms of such policy,
or any rights I may have as a shareholder in a public company (collectively, the
“Reserved Rights”) and this Release shall not affect my right to seek specific
enforcement and/or damages for any alleged breach of the terms and conditions of the
Memorandum and this Release.
	 
	 	(c)	 	There are various state and federal laws that prohibit employment discrimination
including discrimination on the basis of age, sex, race, color, national origin,
religion, disability and veteran status and these laws are enforced through the United
States Equal Employment Opportunity Commission, the United States Department of Labor,
various federal and state agencies, and the federal and state courts. This Release
specifically includes, but is not limited to, any and all claims and causes of action
arising under tort or contract law or specific statutes prohibiting discrimination based
on sex, color, race, national origin, religion, disability, veteran status or age,
including without limitation, the Americans With Disabilities Act, the Age
Discrimination in Employment Act of 1967,

 

 

	 	 	 	Title VII of the Civil Rights Act of 1964, the
Civil Rights Acts of 1866 and 1871, the Equal Pay Act, or any other federal, state,
city, or local laws.
	 
	 	(d)	 	In consideration of the benefits provided to me under the Memorandum and this
Release, I agree to waive and will not assert any of the claims or causes of action that
I have waived in this Release before any federal or state court, any federal or state
agency, or in any public or private arbitration. This prohibition does not apply if it
would be a violation of applicable law or regulation. If this prohibition does not
apply, however, and a charge or lawsuit is filed by or on behalf of me, I agree not to
seek or accept any personal relief, award, monetary damages or other benefits in
connection with or based on such charge or lawsuit. This paragraph is not intended to
limit my right to commence and maintain legal action for the sole purpose of enforcing
the Memorandum and this Release or the Reserved Rights.
	 
	 	(e)	 	I also agree to waive, release and forever discharge Releasees from any and all
claims, causes of action and lawsuits that may arise from any incident, event, act or
omission related to my employment by the Company occurring during my active service
period or severance pay period as those terms are defined in the Memorandum, except for
the purpose of enforcing the Memorandum and this Release or the Reserved Rights.

	3.	 	Releasees hereby waive, release and forever discharge Releasors from all claims, demands,
debts, liabilities, obligations, expenses (including attorney’s fees and costs), promises,
covenants, controversies, grievances, claims, suits, actions or causes of action, in law or in
equity, known or unknown, foreseen or unforeseen, contingent or not contingent, liquidated or
not liquidated, direct or derivative, which Releasees may have had in the past, may have now,
or may in the future claim to have against Releasors arising with respect to any incident,
event, act or omission occurring at any time prior to my signing of this Release, provided
however, that this Release shall not operate as a release or waiver of claims or rights that
arise wholly after the date of its execution. Nor shall this Release in any way apply to or
waive any of Releasees’ rights to enforce the terms and conditions of the Memorandum and this
Release through legal action.
	 
	4.	 	After my service period ends, notwithstanding Section 7 of the ITT Senior Executive Severance
Pay Plan, I will receive no future benefits, compensation or perquisites (including but not
limited to severance pay and benefits) from ITT except as set forth in the Memorandum.
	 
	5.	 	Except as may be required under applicable law or the rules of a stock exchange or national
securities quotation system, I agree to keep the Memorandum and this Release confidential and
not to disclose their contents to anyone except my immediate family, my financial or legal
consultants, and appropriate governmental agencies that require this information.
	 
	6.	 	I agree not to slander, defame or otherwise intentionally injure the reputation of ITT or its
officers, directors, employees, agents, representatives, or products. The Company and all
Releasees agree not to slander, defame or otherwise intentionally injure my reputation or
professional standing.
	 
	7.	 	I acknowledge that: (i) I have been advised in writing to consult with an attorney of my own
choice regarding this Release and the Memorandum; (ii) I have been advised in writing that I
may have at least 21 days from my receipt of this Release and the Memorandum to review and
consider them; (iii) I actively participated in the negotiation of the terms and conditions of
this Release and the Memorandum; (iv) I fully understand those terms and conditions; (v) I am
voluntarily and of my own free will executing this Release and the Memorandum on the date
reflected below; and (vi) during a period of seven days following my execution of this Release
and the Memorandum, I may revoke such executions and this Release and the Memorandum shall not
be effective or enforceable until such seven day period has expired. Should I desire to
revoke this Release and the Memorandum, my revocation must be in writing and addressed to
Scott A. Crum, Senior Vice President and Director Human Resources, ITT, 1133 Westchester
Avenue, White Plains, NY 10604 and delivered to Mr. Crum within the seven day revocation
period.

2

 

	8.	 	ITT and any Releasee shall not be liable for any other monies or payment to me or on my
behalf other than as described in this Release and the Memorandum. This Release and the
Memorandum, which is incorporated herein, contain the entire agreement between me, ITT, and
all Releasees relating to the subject matter thereof. This Release fully supersedes any and
all prior agreements or understandings, whether oral or written. I represent and acknowledge
that in signing this Release and the Memorandum, I have not relied upon any representation or
statement, oral or written, not set forth herein. No amendment to this Release or the
Memorandum shall be binding unless it is in writing, expressly designated as an amendment,
dated, and signed by the parties.
	 
	9.	 	Nothing in this Release or the Memorandum constitutes an admission of liability by ITT or any
Releasee or me, and this Release or the Memorandum will not be used by me, ITT or any other
entity or person as evidence in any proceeding or trial, except to enforce the terms of this
Release and Memorandum or the Reserved Rights.
	 
	10.	 	This Release and the Memorandum shall be construed in accordance with the laws of the State
of New York. Should any provision of this Release or the Memorandum be determined invalid or
unenforceable, the validity of the remaining provisions shall not be affected and shall remain
in full force and effect to the maximum extent permitted by law.
	 
	11.	 	Any dispute, controversy or claim arising out of or relating to this Release or the
Memorandum, or to an alleged breach thereof, shall be finally resolved by arbitration. The
arbitration shall be conducted by one (1) arbitrator jointly agreed to by ITT and me or, if we
cannot agree on an arbitrator, appointed by the American Arbitration Association. The
arbitration shall be conducted in accordance with the Employment Dispute Resolution Rules then
in effect of the American Arbitration Association, which shall administer the arbitration and
act as appointing authority. The arbitration, including the rendering of the award, shall
take place in White Plains, New York, and shall be the exclusive forum for resolving such
dispute, controversy or claim. For the purpose of this arbitration, the provisions of this
Release and Memorandum and all rights and obligations thereunder shall be governed and
construed in accordance with the laws of New York, but the arbitrator shall not have the power
to award punitive or exemplary damages. The arbitration proceedings, the subject matter
thereof, and the award shall be maintained on a confidential basis by the parties, the
mediator, the Arbitrator and the American Arbitration Association, all of whom shall be bound
by this confidentiality provision, except to the extent such information is disclosed to a
court in an action to enforce the arbitrator’s award. The decision of the arbitrator shall be
binding upon the parties hereto, and each party shall be responsible for its own expenses and
attorney’s fees in connection with the arbitration, except as expressly set forth herein. The
decision of the arbitrator shall be executory, and judgment thereon may be entered by any
court of competent jurisdiction. ITT will pay seventy-five percent of the American
Arbitration Association’s arbitration administrative fees and the fees and expenses of the
arbitrator, and I will pay twenty-five percent.
	 
	12.	 	The Memorandum and Release shall be binding upon, and assumed by, all successors and assigns
of ITT.
	 
	13.	 	I have carefully read this Release and the Memorandum, fully understand their provisions,
and my signature below indicates my understanding and agreement with their terms and
conditions.

3

 

The original executed Release and the Memorandum must be returned to Scott A. Crum, Senior Vice
President and Director Human Resources, ITT Corporation, 1133 Westchester Avenue, White Plains, NY
10604.

EMPLOYEE: Vincent A. Maffeo

	 	 	 
	/s/ Vincent A. Maffeo
 

Employee’s Signature

	 	 

STATE OF

COUNTY OF

Subscribed
and sworn before me this 23rd day

of February, 2009

Notary Public

My Commission expires: April 11, 2011

EMPLOYER: ITT Corporation.

/s/ Scott A. Crum, Senior Vice President and Director, Human Resources

Scott A. Crum, Senior Vice President and Director, Human Resources

STATE OF NEW YORK

COUNTY OF WESTCHESTER

Subscribed
and sworn before me this 23rd day

of February, 2009

Notary Public

My Commission expires: April 21, 2011

4

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