Document:

Exhibit

Exhibit 4.5

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

As of the date of the Annual Report on Form 10-K of which this exhibit is a part, IDEX Corporation (the “Corporation”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934: our common stock. 

DESCRIPTION OF CAPITAL STOCK

The following summary description relating to our capital stock is based upon our Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”) and our Amended and Restated Bylaws (the “Bylaws”). The summary does not purport to be complete, and is qualified by reference to our Certificate of Incorporation and Bylaws, each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.5 is a part. 

Capitalization 

Our authorized capital stock currently consists of 150,000,000 shares of common stock, par value $.01 per share, and 5,000,000 shares of preferred stock, par value $.01 per share. 
 
Common Stock 
  
Subject to the rights of the holders of any preferred stock and except as provided below, each holder of common stock on the applicable record date is entitled to receive such dividends as may be declared by the Corporation’s Board of Directors (the “Board”) out of funds legally available therefore. In the event of liquidation, dissolution or winding-up of the Corporation, each stockholder of record on the applicable date has the right to share equally and ratably in any distribution of our assets after payment of liabilities (including payments with respect to any outstanding shares of preferred stock). Each holder of common stock is entitled to one vote for each share held of record on the applicable record date on all matters presented to a vote of stockholders. Our Certificate of Incorporation does not provide for cumulative voting rights.  A majority vote is required for all action to be taken by stockholders, except with respect to matters relating to (i) the election of directors, which requires a plurality of the votes cast, or (ii) adopting amendments to Article VIII of our Certificate of Incorporation, which provides, among other things, for our classified board of directors, or adopting an amendment to our Certificate of Incorporation to provide for cumulative voting rights in the election of directors, each of which requires the affirmative vote of the holders of not less than 80% of the outstanding shares of stock with voting rights. Holders of common stock do not have preemptive, subscription, redemption, sinking fund or conversion rights.

Our common stock is listed on the New York Stock Exchange under the symbol “IEX.”

Preferred Stock 
 
The Corporation’s Board has been authorized, subject to certain limitations set forth in the Certificate of Incorporation, to issue shares of preferred stock in one or more series, by resolution providing for the issuance of such series, and to (i) fix the number of shares which will constitute such series and the designation thereof, (ii) determine the voting rights of shares of such series, (iii) determine the terms and conditions, if any, under which such series may be redeemable, (iv) determine the rate of any dividends payable with respect to shares of such series and any preferences or relations to dividends payable with respect to shares of other classes of our capital stock, (v) determine the rights of shares of such series upon our liquidation, (vi) determine if shares of such series are convertible into or exchangeable for shares of another class or classes of our capital stock and the rates or prices at which shares of such series are convertible or exchangeable, and (vii) determine such other preferences and relative, participating, optional or other special rights and qualifications of shares of such series as are not inconsistent with the terms of the Certificate of Incorporation. 
 
The issuance of preferred stock, however, could adversely affect the voting power of holders of common stock and restrict their rights to receive payments upon liquidation of the Corporation. It could also have the effect of delaying, deferring or preventing a change in control of the Corporation. 

 

Anti-Takeover Effects of Certain Provisions

Certain provisions of the Delaware General Corporation Law (“DGCL”), our Certificate of Incorporation and Bylaws summarized in the paragraphs above and in the following paragraphs may have an anti-takeover effect and could make the following transactions difficult: acquisition by means of a tender offer; acquisition by means of a proxy contest or otherwise; or removal of incumbent officers and directors. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in the best interests of the Corporation, including transactions that might result in a premium over the market price for shares of common stock.

Authorized but Unissued Shares

The Corporation’s authorized but unissued shares of common stock and preferred stock are available for future issuance without stockholder approval. We may use additional shares for a variety of purposes, including future public offerings to raise additional capital, to fund acquisitions and as employee compensation. The existence of authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of the Corporation by means of a proxy contest, tender offer, merger or otherwise.

Undesignated Preferred Stock

The authority that our board of directors possess to issue preferred stock could potentially be used to discourage attempts by third parties to obtain control of the Corporation through a merger, tender offer, proxy contest or otherwise by making such attempts more difficult or more costly. Our board of directors may be able to issue preferred stock with voting rights or conversion rights that, if exercised, could adversely affect the voting power of the holders of common stock.

No Cumulative Voting

The DGCL provides that stockholders are denied the right to cumulate votes in the election of directors unless the company’s Certificate of Incorporation provides otherwise. Our Certificate of Incorporation does not provide for cumulative voting and prohibits any provision imposing cumulative voting in the election of directors from being added unless such action is approved by the affirmative vote of the holders of not less than 80% of the outstanding shares of stock with voting rights. 

Classified Board of Directors

Pursuant to our Certificate of Incorporation, the Corporation’s Board is divided into three classes, with the number of directors in each class as nearly equal as possible. The directors in each class serve for staggered three-year terms. Only one class of directors will be elected at each annual meeting of the stockholders, with the other classes continuing for the remainder of their respective three-year terms. 

Removal of Directors; Vacancy

Our Certificate of Incorporation and Bylaws provide for the removal of any of the Corporation’s directors only for cause and only by the affirmative vote of at least a majority of the voting power of the Corporation’s then outstanding capital stock entitled to vote in the election of directors. Furthermore, any vacancy on the Corporation’s Board, however occurring, including a vacancy resulting from an increase in the size of the Board, shall only be filled by the affirmative vote of a majority of the remaining directors of the class in which such vacancy occurs, or by the affirmative vote of a majority of the remaining directors of the other two classes if there is no director remaining in the class in which such vacancy occurs. 

Special Meetings of the Stockholders

Unless otherwise permitted by applicable law, our Bylaws provide that special meetings of the stockholders may be called only by (i) the Chairman of the Board, (ii) the Board, pursuant to a resolution approved by a majority of the entire Board or (iii) the Secretary of the Corporation upon the written request of stockholders of record as of the record date who hold, in the aggregate, at least a majority of the voting power of the outstanding shares of capital stock of the Corporation.

Stockholder Advance Notice Procedures

Under our Bylaws, to be properly brought before an annual meeting of stockholders, any stockholder proposal or nomination for election to the Board must be delivered to the Secretary of the Corporation not less than 90 days nor more than 120 days prior to the one-year anniversary of the preceding year’s annual meeting; provided, however, that if the date of the annual 

meeting is more than 30 days before or more than 60 days after such anniversary date, notice by the stockholder must be delivered not later than the 90th day prior to such annual meeting or, if later, the 10th day following the day on which public disclosure of the date of such annual meeting was first made. Such notice must contain information specified in our Bylaws as to the director nominee or proposal of other business, information about the stockholder making the nomination or proposal and the beneficial owner, if any, on behalf of whom the nomination or proposal is made.

Exclusive Forum

Our Bylaws provide that, unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought in the right of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors or officers to the Corporation or our stockholders, (iii) any action asserting a claim against the Corporation arising pursuant to any provision of the DGCL, our Certificate of Incorporation or our Bylaws or (iv) any action asserting a claim against the Corporation governed by the internal affairs doctrine shall be the Court of Chancery of the State of Delaware, in each such case subject to said Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. 

Delaware Anti-Takeover Statute
 
We are subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless (i) before that person became an interested stockholder, the corporation’s board of directors approved the transaction in which the interested stockholder became an interested stockholder or approved the business combination; (ii) upon completion of the transaction that resulted in the interested stockholder’s becoming an interested stockholder, the interested stockholder owns at least 85% of the voting stock outstanding at the time the transaction commenced (excluding stock held by directors who are also officers of the corporation and by employee stock plans that do not provide employees with the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer); or (iii) following the transaction in which that person became an interested stockholder, the business combination is approved by the corporation’s board of directors and authorized at a meeting of stockholders by the affirmative vote of the holders of at least two-thirds of the outstanding voting stock not owned by the interested stockholder. Under Section 203, these restrictions also do not apply to certain business combinations proposed by an interested stockholder following the announcement or notification of one of certain extraordinary transactions involving the corporation and a person who was not an interested stockholder during the previous three years or who became an interested stockholder with the approval of a majority of the corporation’s directors, if that extraordinary transaction is approved or not opposed by a majority of the directors who were directors before any person became an interested stockholder in the previous three years or who were recommended for election or elected to succeed such directors by a majority of such directors then in office. “Business combination” includes mergers, assets sales and other transactions resulting in a financial benefit to the stockholder. An “interested stockholder” is any entity or person who, together with affiliates and associates, owns (or, within the previous three years, did own) 15% or more of the corporation’s outstanding voting stock.Exhibit

Exhibit 10.35
    

IDEX 
Amended and Restated Non-Employee Director Compensation Policy
(Effective January 1, 2020)

This Amended and Restated Non-Employee Director Compensation Policy, effective as of January 1, 2020 (the “Policy”), has been established by IDEX Corporation (the “Company” to provide each member of the Company’s Board of Directors (the “Board”) who is not an employee of the Company (a “Director”) with compensation for services performed as a Director.  Each Director will, automatically and without further action of the Company, receive cash compensation and equity-based compensation in respect of shares of the Company’s common stock (“Shares”) pursuant to the terms and conditions set forth in this Policy, unless such Director declines the receipt of such cash or equity-based compensation by written notice to the Company or except as otherwise provided herein.  This Policy shall remain in effect until it is revised or rescinded by further action of the Board.
Annual Cash Compensation
The annual cash compensation set forth below is payable in equal quarterly installments, in arrears following the end of each quarter in which the service occurred, pro-rated for the number of days served as a Director in any partial quarter (unless deferred under the section below entitled “Deferral Elections”):
		
	1.
	Annual Board Service Retainer:

Each Director:  $90,000
		
	2.
	Annual Committee Service Retainer (Chair):

		
	a.
	Chair of the Audit Committee:  $18,000

		
	b.
	Chair of the Compensation Committee:  $12,500

		
	c.
	Chair of the Nominating and Corporate Governance Committee:  $10,000

		
	3.
	Annual Lead Director Service Retainer:

Lead Director:  $15,000
Equity Compensation
Equity awards issued pursuant to the Policy shall be granted under the Second Amended and Restated IDEX Corporation Incentive Award Plan, as may be amended from time to time, or any successor thereto (the “Plan”), and shall be subject to the execution and delivery by the Director of a form of equity award agreement thereunder as previously adopted by the Board (or a duly authorized committee thereof).
		
	1.
	Initial Grant.  On the date of a Director’s initial election or appointment to the Board (or, if such date is not a market trading day, the first market trading day thereafter), the Director will receive a grant of restricted stock units (“RSUs”) in an amount equal to $145,000, divided by the closing price of a Share on the New York Stock Exchange on the date of grant, rounded up to the next five whole Shares (an “Initial Grant”); provided, that if a Director is first appointed to the Board on a date other than an Annual Grant Date (as defined below), such Director will be granted, on the date of such appointment (or, if such date is not a market trading day, the first market trading day thereafter), a number of RSUs determined by (i) dividing (x) $145,000, by (y) the closing price of a Share on the New York Stock Exchange on the date of grant, and (ii) multiplying such quotient by a fraction the numerator of which is the number of days between the date of grant and the next Annual Grant Date and the denominator of which is three hundred and sixty five (365), rounded up to the next five whole Shares.

		
	2.
	Annual Grant.  On the date of the first meeting of the Board held immediately following each annual meeting of the Company’s stockholders (each, an “Annual Grant Date”), each Director (other than the Lead Director) then in office who has not given notice as of the Annual Grant Date of his or her intent to resign from the Board will receive a grant of RSUs in an amount equal to $145,000, divided by the closing price of a Share on the New York Stock Exchange on the date of grant, rounded up to the next  five whole Shares (the “Annual Grant”).  A Director elected for the first time to the Board on an Annual Grant Date shall only receive an Initial Grant in connection with such election, and shall not receive an Annual Grant on such Annual Grant Date as well.

		
	3.
	Annual Lead Director Grant.  On each Annual Grant Date, the Lead Director will receive a grant of RSUs in an amount equal to $160,000, divided by the closing price of a Share on the New York Stock Exchange on the date of grant, rounded up to the next five whole Shares (which grant shall be in lieu of the Annual Grant), provided, that the Lead Director has not given notice as of the Annual Grant Date of his or her intent to resign from the Board.

All RSUs issued pursuant to this Policy will vest in full on the earliest to occur of (i) the third anniversary of the date of grant, subject to the Director’s continuous service through such date, (ii) the date on which the Director ceases to serve on the Board for any reason after achieving at least six years of continuous service on the Board, (iii) the date of the Director’s death or disability, (iv) the date on which the Director ceases to serve on the Board by reason of a failure to be re-elected to the Board, or (v) the occurrence of a Change in Control (as defined in the Plan) subject to the Director’s continuous service through such date.  Settlement of the RSUs will be in the form of Shares at the time of vesting (unless deferred under the section below entitled “Deferral Elections”), subject to such other terms and conditions set forth in the applicable award agreement evidencing such RSUs.  To the extent any RSUs have not vested at the time of a Director’s cessation of service on the Board, such RSUs shall be forfeited by the Director and cancelled for no consideration.
Notwithstanding the foregoing, the Board may, in its sole discretion, determine to grant additional equity awards under the Plan to a Director at such time and upon such terms and conditions as determined by the Board, provided, that in no event shall the aggregate value of all equity awards granted to a Director under this Policy during any calendar year (measured at the time of grant in accordance with applicable accounting standards) exceed the maximum value of equity awards that may be granted to any Director during such calendar year as set forth in the Plan.
Stock Ownership Guideline
Each Director shall maintain direct ownership of Shares equal to or greater in value to five times the current Annual Board Service Retainer (the “Ownership Guideline”).  No Director shall be permitted to sell Shares until the Director satisfies the Ownership Guideline, and after a Director meets the Ownership Guideline, the Director may not sell shares if the sale would put the Director below the Ownership Guideline.  Shares directly owned, as well as unvested and deferred RSUs, shall count toward satisfying the Ownership Guideline.
Deferral Elections
		
	1.
	Cash Compensation.  A Director may elect to defer any cash compensation payable with respect to a calendar year of service in accordance with the Third Amended and Restated IDEX Corporation Directors Deferred Compensation Plan, as may be amended from time to time, or any successor thereto.

		
	2.
	RSUs.  A Director may elect to defer the settlement of Shares issuable with respect to any RSUs granted to the Director with respect to a calendar year of service, subject to the terms and conditions set forth in this Section, a deferral election form previously adopted by the Board (or a duly authorized committee thereof) and Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder.  

The Director may elect to defer settlement of all or a portion of the RSUs granted to the Director with respect to a calendar year of service by filing a completed deferral election form with the Company. The Director must file the deferral election form no later than December 31 of the prior calendar year for the calendar year in which service is to be provided; provided, that if the Director is first appointed or elected to the Board during a calendar year, such Director may elect to defer settlement of RSUs within 30 days of such initial appointment or election to the Board with respect to RSUs that relate to service performed after the election. Each deferral election made with respect to a calendar year shall be irrevocable with respect to such calendar year. Pursuant to the deferral election form, the Director must irrevocably elect the specified 

date(s) and increment(s) with respect to which the Director will receive Shares issuable upon the settlement of those RSUs that the Director has elected to defer (each, a “Settlement Date”).  If the Director fails to elect a Settlement Date, settlement of the RSUs will occur on the earlier of (i) the fourth anniversary of the date of grant of the RSUs or (ii) the date of the Director’s “separation from service” (within the meaning of Section 409A of the Code). All deferral elections shall be made in accordance with rules and procedures established by the Company as determined in accordance with Section 409A of the Code and the regulations thereunder.  Pursuant to the applicable deferral election form, the Director shall receive Shares issuable in respect of the RSUs on the earliest to occur of (x) the Settlement Date(s) elected by the Director (or, if the Director fails to elect a Settlement Date, the earlier to occur of the fourth anniversary of the date of grant of the RSUs or the date of the Director’s separation from service), (y) a Change in Control, or (z) the date of the Director’s death or disability.
Expenses
The Company will reimburse each Director for ordinary, necessary and reasonable out-of-pocket travel expenses to cover in-person attendance at and participation in Board and committee meetings. To the extent that any such reimbursements are deemed to constitute compensation to the Director, such amounts shall be reimbursed no later than December 31 of the year following the year in which the expense was incurred. The amount of any expense reimbursements that constitute compensation in one year shall not affect the amount of expense reimbursements constituting compensation that are eligible for reimbursement in any subsequent year, and the Director’s right to such reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.
Section 409A
To the extent applicable, the Policy shall be interpreted in accordance with Section 409A of the Code and the regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision in the Policy, any deferral election form or any other agreement evidencing amounts subject to the Policy to the contrary, if the Company determines that any amounts subject to the Policy may not be either exempt from or compliant with Section 409A of the Code, the Company may, in its sole discretion, adopt such amendments to the Policy, any deferral election form or any other agreement relating to the Policy, adopt other policies or procedures or take any other actions that the Company determines are necessary or appropriate to (i) exempt such amounts from Section 409A of the Code and/or preserve the intended tax treatment of such amounts, or (ii) comply with the requirements of Section 409A of the Code; provided, that this Section shall not create any obligation on the Company to adopt any such amendment, policy or procedure or take any such other action.

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