Document:

EX-10.7

Exhibit 10.7

DOVER CORPORATION

2005 EQUITY AND CASH INCENTIVE PLAN

(as amended effective January 1, 2009)

A. PURPOSE AND SCOPE OF

THE PLAN

     1. Purpose. The 2005 Equity and Cash Incentive Plan (the “Plan”) is intended to promote the
long-term success of Dover Corporation by providing salaried officers and other key employees of
Dover Corporation and its subsidiaries, on whom major responsibility for the present and future
success of Dover Corporation rests, with long-range and medium-range inducement to remain with the
organization and to encourage them to increase their efforts to make Dover Corporation successful.
The term “Corporation” shall mean Dover Corporation and any present or future corporation which is
or would be a “subsidiary corporation” of Dover Corporation as defined in Section 424 of the
Internal Revenue Code of 1986, as amended (the “Code”), unless the context requires otherwise.

     2. Successor Plan. The Plan is the successor to the 1995 Incentive Stock Option Plan and 1995
Cash Performance Program (the “Predecessor Plan”). No further grants of options, restricted stock
or cash performance awards may be made under the Predecessor Plan after the Predecessor Plan
expires on January 30, 2005. Options, restricted stock and performance awards under the
Predecessor Plan shall be administered pursuant to the provisions of the Predecessor Plan.

     3. Administration. The Plan shall be administered and interpreted by the Compensation
Committee or such other Committee of the Board of Directors as the Board may designate if there is
no Compensation Committee (the “Committee”), consisting of not less than three (3) persons
appointed by the Board of Directors of Dover Corporation from among its members. A person may
serve as a Committee member provided he or she shall comply in all respects with any qualifications
required by law, including specifically being a “non-employee director” for purposes of the rules
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and an
“outside director” for purposes of Section 162(m) of the Code, and satisfying any other
independence requirement under applicable law and regulations. The Committee will have sole and
complete authority to administer all aspects of the Plan, including but not limited to: (a)
determining the individuals eligible to receive stock options, SSARs (as defined in Paragraph 6),
restricted stock and/or cash performance awards under the Plan; (b) granting options, SSARs,
restricted stock and cash performance awards; (c) determining the number of shares to be subject to
options and SSARs, and the amount of restricted stock and cash performance awards to be granted to
any such eligible individuals at any time or from time to time; (d) determining the terms and
conditions under which option and SSAR grants, restricted stock awards and cash performance awards
will be made; and (e) determining whether objectives, conditions and performance criteria for cash
performance awards and, if applicable, restricted stock awards have been met. The Committee may,
subject to the provisions of the Plan, from time to time establish such rules and regulations as it
deems appropriate for the proper administration of the Plan. The Committee’s decisions shall be
final,

 

 

conclusive and binding with respect to the interpretation and administration of the Plan and
any grants or awards made thereunder.

     4. Eligibility. Option and SSAR grants, restricted stock awards and cash performance awards
may be made to any employee of the Corporation who is a salaried officer or other key employee,
including salaried officers who are also members of the Board of Directors (hereinafter sometimes
referred to as “participants”). The Committee shall select the participants eligible for, and
determine the terms of, the grants and awards to each.

     5. Shares Available for Grant. An aggregate maximum of 20,000,000 shares of common stock of
Dover Corporation (the “Common Stock”) will be reserved for issuance upon exercise of options to
purchase Common Stock granted under the Plan, the exercise of SSARs granted under the Plan, and for
awards of restricted stock. This maximum number is subject to appropriate adjustment resulting
from future stock splits, stock dividends, recapitalizations, reorganizations and other similar
changes to be computed in the same manner as that provided for in Paragraph 14 below. If any
option, SSAR, or award of restricted stock granted under the Plan expires, terminates, or is
forfeited or canceled for any reason, the number of unpurchased, forfeited or cancelled shares
under such option, right or award will again be available under the Plan.

B. STOCK OPTION AND SSAR GRANTS

     6. Stock Options and SSARs. Options to purchase shares of Common Stock may be granted under
the terms of the Plan and shall be designated as either “non-qualified” stock options or
“incentive” stock options (“ISOs”) within the meaning of Section 422 of the Code. Stock
appreciation rights that are settled upon exercise by the issuance of shares of Common Stock
(“SSARs”) may be granted under the terms of the Plan. SSARs shall be granted separately from
options and the exercise of an SSAR shall not be linked in any way to the exercise of an option and
shall not affect any option award then outstanding. Stock option grants and SSARs shall contain
such terms and conditions as the Committee may from time to time determine, subject to the
following limitations:

Exercise Price. The price at which shares of Common Stock may be purchased upon exercise of an
option shall be fixed by the Committee and may be equal to or more than (but not less than) the
fair market value (as defined below) of a share of the Common Stock as of the date the option is
granted.

Base Price. The base price of an SSAR shall be fixed by the Committee and may be equal to or more
than (but not less than) the fair market value of a share of the Common Stock as of the date the
SSAR is granted.

Fair Market Value. For purposes of the Plan, the fair market value of a share of Common Stock on
the date the option or SSAR is granted shall be determined in good faith by the Committee on the
basis of such considerations as the Committee deems appropriate from time to time, including, but
not limited to, such factors as the closing price for a share of Common Stock on such day (or, if
such day is not a trading day, on the next trading day) on the principal United

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States exchange on which the Common Stock then regularly trades (the “Exchange”), the average of
the closing bid and asked prices for a share of Common Stock on the Exchange on the date the option
or SSAR is granted by the Committee or the average of the high and low sales price of a share of
Common Stock on the Exchange on the date the option or SSAR is granted by the Committee (“fair
market value”). The Committee shall be authorized, in its discretion, to round the fair market
value of a share of Common Stock to the nearest whole number or quarterly fraction thereof.

Term. The term of each option or SSAR will be for such period as the Committee shall determine as
set forth in the stock option or SSAR agreement, but in no event shall the term of an option or
SSAR be greater than 10 years from the date of grant.

Rights of Holder. A recipient of stock options or SSARs shall have no rights as a stockholder with
respect to any shares issuable or transferable upon exercise thereof until the date of issuance of
a stock certificate for such shares. Except as specifically set forth in Paragraph 14 below, no
adjustment shall be made for dividends or other distributions of cash or other property on or with
respect to shares of stock covered by options or SSARs paid or payable to holders of record prior
to such issuance.

Limits on Individuals. The maximum number of shares of Common Stock covered by all options and
SSARs granted to a single participant in any year may not exceed 600,000. The aggregate fair
market value (determined on the date of grant) of Common Stock with respect to which a participant
is granted ISOs (including ISOs granted under the Predecessor Plan) which first become exercisable
during any given calendar year shall not exceed $100,000.

     7. Exercise. An option or SSAR granted under the Plan shall be exercisable during the term of
the option or SSAR subject to such terms and conditions as the Committee shall determine and are
specified in the stock option or SSAR agreement, not inconsistent with the terms of the Plan;
provided, however, that except as set forth in Paragraphs 11, 14 and 35, no option
or SSAR may be exercised prior to the third (3rd) anniversary of the date of its grant
and any partial exercise of an option or SSAR shall be with respect to not fewer than 500 shares.
In addition, the Committee may condition the exercise of an option or SSAR upon the attainment by
the Corporation or any subsidiary or division or by the participant of any performance criteria set
by the Committee. The shares to be issued upon exercise of an option or SSAR will be either
treasury or authorized and unissued stock, in the sole discretion of the Corporation.

     Option. To exercise an option, the option holder must give written notice to the Corporation
of the number of shares to be purchased accompanied by payment of the full purchase price of such
shares as set forth in Paragraph 8. The date when the Corporation has actually received both such
notice and payment shall be deemed the date of exercise of the option with respect to the shares
being purchased and the stock certificates therefor shall be issued as soon as practicable
thereafter.

     SSAR. To exercise an SSAR, the SSAR holder must give written notice to the Corporation of the
number of SSARs being exercised as provided in the SSAR agreement. No payment shall be required to
exercise an SSAR. The date of actual receipt by the Corporation of such notice shall be deemed to
be the date of exercise of the SSAR and the stock certificates

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issued in settlement of such exercise therefor shall be issued as soon as practicable
thereafter. Upon the exercise of an SSAR, the SSAR holder shall be entitled to receive from the
Corporation for the SSARs being exercised that number of whole shares of Common Stock having a fair
market value on the date of exercise of the SSAR equal in value to the excess of (A) the fair
market value of a share of Common Stock on the exercise date multiplied by the number of SSARs
being exercised over (B) the sum of (i) the aggregate base prices of the SSARs being exercised
multiplied by the number of SSARs being exercised, plus (ii) unless the holder elects to pay such
tax in cash, any amount of tax that must be withheld in connection with such exercise. For this
purpose, the fair market value of a share of Common Stock on the date of exercise of an SSAR shall
be the average of the high and low sales price of a share of Common Stock on the Exchange on the
date an SSAR is exercised or if no sales have occurred on that date, such value will be the closing
price per share on the next trading date following the exercise of the SSAR. Fractional shares of
Common Stock shall be disregarded upon exercise of an SSAR unless otherwise determined by the
Committee.

     8. Payment of Exercise Price. Payment of the option exercise price must be made in full at
the time of exercise (a) by check made payable to the Corporation, (b) by transfer to the
Corporation of shares of Common Stock owned by the participant, or (c) with a combination of the
foregoing. If payment is made by the transfer of shares, the shares of Common Stock to be
transferred to the Corporation must have been owned by the option holder for more than six (6)
months on the date of transfer (or such other period as may be required to prevent the Corporation
from incurring an adverse accounting charge), the value per share of the shares so transferred to
the Corporation to be credited toward the purchase price will be the average between the high and
the low sales price per share of Common Stock on the Exchange on the date the option is exercised
or, if no sales have occurred on that date, such value will be the closing price per share on the
Exchange on the next trading day following the exercise of the option. The shares transferred to
the Corporation will be added to the Corporation’s treasury shares or canceled and become
authorized and unissued shares.

     9. Transfers. The options and SSARs granted under the Plan may not be sold, transferred,
hypothecated, pledged or otherwise disposed of by any of the holders except by will or by the laws
of descent and distribution, or as otherwise provided herein. The option or SSARs of any person to
acquire stock and all rights thereunder shall terminate immediately if the holder attempts to or
does sell, assign, transfer, pledge, hypothecate or otherwise dispose of the option or SSAR or any
rights thereunder to any other person except as permitted herein. Notwithstanding the foregoing, a
participant may transfer any non-qualified stock option (but not ISOs or SSARs) granted under this
Plan to members of the holder’s immediate family (defined as a spouse, children and/or
grandchildren), or to one or more trusts for the benefit of such family members if the instrument
evidencing such option expressly so provides and the option holder does not receive any
consideration for the transfer; provided that any such transferred option shall continue to
be subject to the same terms and conditions that were applicable to such option immediately prior
to its transfer (except that such transferred option shall not be further transferred by the
transferee during the transferee’s lifetime).

     10. Registration. The Corporation will stamp stock certificates delivered to the stockholder
with an appropriate legend if the shares are not registered under the Securities Act of 1933, as
amended (the “Securities Act”), or are otherwise not free to be transferred by the holder

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and will issue appropriate stop-order instructions to the transfer agent for the Common Stock,
if and to the extent such stamping or instructions may then be required by the Securities Act or by
any rule or regulation of the Securities and Exchange Commission issued pursuant to the Securities
Act.

     11. Effect of Death, or Permanent Disability or Retirement. If an option or SSAR holder dies
or becomes permanently disabled while employed by the Corporation, all options or SSARs held by
such holder shall become immediately exercisable and the holder or such holder’s estate or the
legatees or distributees of such holder’s estate or of the options or SSARs, as the case may be,
shall have the right, on or before the earlier of the respective expiration date of an option or
SSAR or sixty (60) months following the date of such death or permanent disability, to exercise any
or all options or SSARs held by such holder as of such date of death or permanent disability. If
an option or SSAR holder retires at or after age 62, the holder shall have the right, on or before
the earlier of the expiration date of the option or SSAR or sixty (60) months following the date of
such retirement, to purchase shares under any options or SSARs which at retirement are, or within
sixty (60) months following retirement become, exercisable.

If the employment of a holder of an option or SSAR terminates for any reason other than (i) the
reasons specified above or (ii) termination for “cause” (as defined below), and one of the
following sets of circumstances is applicable: (a) the holder has at least 10 years of service
with the Corporation (including service with any subsidiary corporation of the Corporation while it
is owned by the Corporation), the sum of the holder’s years of service plus his or her age on the
date of such termination equals at least 65 and the holder satisfies the notice requirements set
forth below (“Early Retirement I”), (b) the holder has at least 15 years of service with the
Corporation (including service with any subsidiary corporation of the Corporation while is it owned
by the Corporation), the sum of the holder’s years of service plus his or her age on the date of
such termination equals at least 70 and the holder satisfies the notice requirements set forth
below (“Early Retirement II”), or (c) such holder’s employment with the Corporation terminates due
to the sale of stock or assets of the subsidiary corporation (or line of business) by which the
holder is employed and the holder is so employed in good standing by the subsidiary or line of
business through the date of such sale (“Early Retirement III”; each of Early Retirement I, II and
III from time to time being referred to herein as “Early Retirement”), the holder shall have the
right (subject to the provisions of Paragraph 36 below), (x) in the event of Early Retirement I, on
or before the earlier of the expiration date of the option or SSAR or twenty-four (24) months
following the date of such Early Retirement, to exercise, and acquire shares under, any options or
SSARs which at such termination are, or within twenty-four (24) months following such termination
become, exercisable, (y) in the event of Early Retirement II, on or before the earlier of the
expiration date of the option or SSAR or thirty-six (36) months following the date of such Early
Retirement, to exercise, and acquire shares under, any options or SSARs which at such termination
are, or within thirty-six (36) months following such termination become, exercisable, or (z) in the
event of Early Retirement III, on or before the earlier of the expiration date of the option or
SSAR or twelve (12) months following the date of such Early Retirement, to exercise, and acquire
shares under, any options or SSARs which at such termination are, or within twelve (12) months
following such termination become, exercisable. Notwithstanding the above, if a holder taking Early
Retirement III would also qualify for Early Retirement I or II excluding the notice requirement,
the holder shall be entitled to the benefits of Early Retirement I or II, as appropriate.

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In order to be eligible for Early Retirement I or II, the holder must give six (6) months advance
notice of retirement and must continue to be employed by the Corporation (or any subsidiary
corporation provided such subsidiary corporation continues to be owned by the Corporation
throughout the notice period) and perform his or her duties throughout such notice period. Failure
to satisfy the notice requirement will render the holder ineligible for Early Retirement I or II
notwithstanding the satisfaction by the holder of all other applicable requirements. Dover’s Chief
Executive Officer shall have the authority to reduce or waive the required notice period.

     12. Voluntary or Involuntary Termination. If any option or SSAR holder’s employment with the
Corporation is voluntarily or involuntarily terminated for any reason, other than for reasons or in
circumstances specified above or for “cause” (as defined below), the holder shall have the right at
any time on or before the earlier of the expiration date of the option or SSAR or three (3) months
following the effective date of such termination of employment, to exercise, and acquire shares
under, any options or SSARs which at such termination are exercisable.

     13. Termination for Cause. If an option or SSAR holder’s employment with the Corporation is
terminated for cause (defined as (a) a felony conviction of the holder; (b) the commission by the
holder of an act of fraud or embezzlement against the Corporation; or (c) the holder’s willful
misconduct or gross negligence materially detrimental to the Corporation), the option or SSAR shall
be canceled and the holder shall have no further rights to exercise any such option or SSAR and all
of such holder’s rights thereunder shall terminate as of the effective date of termination of
employment.

     14. Effect of Stock Dividends, Merger, Recapitalization or Reorganization or Similar Events.
If any Common Stock dividend is paid by the Corporation, if any non-cash distribution is made by
the Corporation as respects its Common Stock, if the shares of Common Stock are split or
reclassified, if the Corporation should be reorganized or consolidated or merged with or into
another corporation, or if all or substantially all the assets of the Corporation are transferred
to any other corporation in a reorganization, each option or SSAR holder shall be entitled, upon
exercise of such holder’s option or SSAR, to receive for the same aggregate exercise price in the
case of an option, or upon exercise of the SSAR, the same number and kind of shares of stock (to
the nearest whole number) as he or she would have been entitled to receive upon the happening of
such stock dividend, distribution, stock split, reclassification, reorganization, consolidation,
merger or transfer, if he or she had been, immediately prior to such event, the holder of such
shares. Outstanding options and SSARs shall be appropriately amended as to exercise price or base
price and other terms in a manner consistent with the aforementioned adjustment to the shares of
Common Stock subject to the Plan. The adjustments to be made pursuant to this Paragraph 14 shall
meet the requirements of Section 409A of the Code and the regulations thereunder. The Board of
Directors shall have the power, in the event of any disposition of substantially all of the assets
of the Corporation, its dissolution, any merger or consolidation, or the merger or consolidation of
any other corporation into the Corporation, to amend all outstanding options and SSARs to permit
their exercise prior to the effectiveness of any such transaction and to terminate such options or
SSARs as of such effectiveness. If the Board of Directors shall exercise such power, all options
and SSARs outstanding shall be deemed to have been amended to permit the exercise thereof in whole
or in part by the holder at any time or from

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time to time as determined by the Board of Directors prior to the effectiveness of such
transaction and such options and SSARs shall be deemed to terminate upon such effectiveness.

     15. Change in Control. Options and SSARs and grantees of options and SSARs shall be subject
to the terms of Paragraph 35 below related to a change in control of the Corporation.

C. RESTRICTED STOCK AWARDS

     16. Grant. Subject to the provisions and as part of the Plan, the Committee shall have the
discretion and authority to award to persons eligible to participate in the Plan shares of Common
Stock which are subject to specified forfeiture restrictions during a specified restriction period
and subject to the other applicable terms of the Plan (“restricted stock”). Subject to the
provisions of the Plan, awards of restricted stock shall contain such terms and conditions as the
Committee may determine at the time of award; provided, however, in no event shall
the aggregate number of shares of restricted stock awarded under the Plan exceed five percent (5%)
of the total number of shares reserved for issuance under the Plan in accordance with Paragraph 5
hereof.

     17. Term of Restriction Period. The Committee may adopt such vesting schedules, not less than
one (1) year and not longer than five (5) years from the date of the award, as it may deem
appropriate with respect to awards of restricted stock and may condition the lapse of the
restrictions applicable to an award upon the attainment by the Corporation or any subsidiary or
division or by the participant of any performance criteria set by the Committee.

     18. Issuance of Shares. Certificates issued for restricted stock shall be registered in the
name of the participant and deposited by the participant with the Secretary of the Corporation,
together with a stock power endorsed in blank. Upon lapse of the applicable restriction period
and/or attainment of any applicable performance criteria and/or satisfaction of any other
restrictions, the Corporation shall deliver such certificates to the participant. In the event
that the shares of restricted stock are forfeited, such shares automatically shall be transferred
back to the Corporation. The Corporation will stamp the stock certificates delivered to the
participant with an appropriate legend if the shares are not registered under the Securities Act,
or are otherwise not free to be transferred by the participant and will issue appropriate
stop-order instructions to the transfer agent for the Common Stock, if and to the extent such
stamping or instructions may then be required by the Securities Act or by any rule or regulation of
the Securities and Exchange Commission issued pursuant to the Securities Act.

     19. Dividends and Voting Rights. In the discretion of the Committee, dividends which become
payable with respect to restricted stock during the restriction period will be reinvested in
additional shares of restricted stock for the account of the award recipient, accumulated for later
distribution to vested participants (in each case, such amounts shall be payable upon fixed dates
or events in accordance with the requirements of Section 409A of the Code), or distributed to the
award recipient as paid. An employee who receives an award of restricted stock may also in the
discretion of the Committee be entitled, during the restriction period, to exercise voting rights
with respect to such restricted stock.

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     20. Nontransferability. Shares of restricted stock may not be sold, assigned, transferred,
pledged or otherwise encumbered and shall not be subject to execution, attachment, garnishment or
other similar legal process, except as otherwise provided in the applicable award agreement. Upon
any attempt to sell, transfer, assign, pledge, or otherwise encumber or dispose of the restricted
stock contrary to the provisions of the award agreement or the Plan, the restricted stock shall
immediately be forfeited to the Corporation.

     21. Termination of Employment. In the case of a participant’s permanent disability, death,
termination of employment by the Corporation other than for cause (as defined in Paragraph 13
above) or special circumstances, as determined by the Committee, any purely temporal restrictions
remaining with respect to shares of restricted stock as of the date of such disability, death or
termination of employment shall lapse and, if any performance criteria are applicable, the shares
of restricted stock shall continue to vest as if the participant’s employment had not terminated
until the prescribed time for determining attainment of performance criteria has passed and the
appropriate determination of attainment of performance criteria has been made. If the
participant’s employment with the Corporation is terminated as a result of (a) the retirement of
the participant at or after age 62, or (b) an Early Retirement, subject to the provisions of
Paragraph 36 below, then, in either such case, the shares of restricted stock shall continue to
vest as if the participant’s employment had not terminated until such time as the remaining
temporal restrictions lapse and, if any performance criteria are applicable, the prescribed time
for determining attainment of performance criteria has passed and the appropriate determination of
attainment of performance criteria has been made. Notwithstanding the foregoing, any award to a
participant who is a “covered employee” within the meaning of Section 162(m) of the Code shall be
subject to satisfaction of applicable performance criteria and certification by the committee of
the attainment of such performance criteria, except to the extent that a payment notwithstanding
the failure to attain the performance criteria is permitted by Section 162(m) of the Code and
regulations and rulings thereunder. If a participant’s employment with the Corporation is
voluntarily or involuntarily terminated for any other reason during the restriction period, the
shares of restricted stock shall be forfeited.

     22. Effect of Stock Dividends, Merger, Recapitalization or Reorganization or Similar Events.
In the event of a stock dividend, merger, recapitalization, reorganization or other transaction
described in Paragraph 14 above, the terms and conditions of the restricted stock awards shall be
adjusted in a manner consistent with adjustments made to options granted under the Plan.

     23. Change in Control. Awards of restricted stock and participants who are awarded
restricted stock shall be subject to the terms of Paragraph 35 below.

     24. Cancellation. The Committee may at any time, with due consideration to the effect on the
holder of Section 409A of the Code, require the cancellation of any award of restricted stock in
consideration of a cash payment or alternative award under the Plan equal to the fair market value
of the cancelled award of restricted stock.

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D. CASH PERFORMANCE AWARDS

     25. Awards and Period of Contingency. The Committee may, concurrently with, or independently
of, the granting of an option or SSAR under the Plan, in its sole discretion, grant to a
participant the opportunity to earn a cash performance payment, conditional upon the satisfaction
of objective pre-established performance criteria during a performance period. The performance
period shall be not less than three (3) fiscal years of the Corporation, including the year in
which the conditional grant is made. Any performance criteria established by the Committee shall
include one or more objective formulas or standards for determining the amount of the performance
payment payable to a participant if the criteria are satisfied and shall otherwise meet the
requirements of Section 162(m) of the Code and the regulations thereunder. The performance criteria
may be fixed by the Committee for the Corporation as a whole or for a subsidiary or division of the
Corporation, depending on the Committee’s judgment as to what is most appropriate for the
individual involved, and shall be set by the Committee not later than the 90th day after the
commencement of the period of services to which the performance payment relates or by the time 25%
of such period of services has elapsed. Performance criteria shall be based on at least one or
more of the following factors which the Committee deems appropriate, as they apply to the
Corporation as a whole or to a subsidiary or a division: (a) earnings per share, (b) operating
earnings, (c) return on equity, and (d) return on investment. The performance criteria with
respect to a performance period will be the same for all persons within the same business unit.
The material terms of the performance criteria shall be subject to stockholder approval to the
extent provided in regulations promulgated under Section 162(m) of the Code.

     26. Determination of Payment Amount. The aggregate maximum cash payout for any business unit
within the Corporation or the Corporation as a whole shall not exceed a fixed percentage of the
annual average earnings increase of the relevant entity during the performance period, such
percentages and dollar amounts to be determined by the Committee annually when performance criteria
are established. In no event can an individual receive an annual payment which exceeds $2 million.
A performance payment shall be payable with respect to a performance period only if the Committee
shall have certified that the applicable performance criteria have been satisfied. The Committee
shall also have the power to approve proportional or adjusted payments under the Plan to address
situations where participants join the Corporation, or transfer within the Corporation, during a
performance period, provided that with respect to a payment that is intended to meet the
requirements of Section 162(m) of the Code, such approval shall be given only if such payments
would continue to meet the requirements of qualified performance-based compensation under Section
162(m) of the Code and the regulations promulgated thereunder. Notwithstanding the foregoing, the
Committee may in the case of such adjustments, in its sole discretion, elect to make a payment to a
permanently disabled participant or to the participant’s estate (or to legatees or distributees, as
the case may be, of the participant’s estate) in the case of death without regard to actual
attainment of the performance criteria (or the Committee’s certification thereof) and whether or
not payment of such award would be deductible under Section 162(m) of the Code, provided, however,
that this sentence shall be of no force or effect to the extent awards made under the Plan to
“covered employee” under Section 162(m) of the Code would fail to be qualified performance-based
compensation under Code Section 162(m)(4)(C) and Treasury regulations issued thereunder merely
because this sentence allows such payment. The Committee shall have the discretion to decrease the
amount payable

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upon attainment of the performance criteria (as determined under such formula or standard) to
take into account the effect of any unusual, non-recurring circumstance, provided that a decrease
for one participant does not result in an increase in the amount payable to another participant,
and shall have the discretion to increase the amount payable to take into account any such effect
but only in the case of a payment not intended to constitute “qualified performance-based
compensation” within the meaning of Section 162(m) of the Code. Cash performance awards shall be
paid within two and one-half months following the year in which the relevant performance period
ends.

     27. Effect of Death, Disability or Early Retirement. If a participant in the Plan holding a
cash performance award dies or becomes permanently disabled (within the meaning of Section 409A of
the Code) while employed by the Corporation, then, subject to the provisions of Paragraph 36 below
and subject to the actual attainment of the relevant performance criteria (and the Committee
certification thereof), the participant (or the participant’s estate or the legatees or
distributees of the participant’s estate, as the case may be) shall be entitled to receive on the
payment date the cash payment which the participant would have earned had the participant then been
an employee of the Corporation, multiplied by a fraction, the numerator of which is the number of
months the participant was employed by the Corporation during the performance measurement period
and the denominator of which is the number of months of the performance measurement period
(treating fractional months as whole months in each case). Except as provided in paragraph 35,
such payment shall be subject to satisfaction of the applicable performance criteria and
certification by the Committee of the attainment of such performance criteria.

     If the participant in the Plan is the subject of Early Retirement I or Early Retirement II (as
defined in Paragraph 11) and on the date of such Early Retirement the participant holds one or more
outstanding cash performance awards, the Committee, or if the Committee delegates to the
Corporation’s Chief Executive Officer such authority, the Corporation’s Chief Executive Officer,
shall determine in its sole discretion whether the participant is eligible to receive any payment
and, if so, the amount thereof, in which event such payment shall be made on the date or dates
following the date of the participant’s Early Retirement on which the Corporation pays cash
performance awards for the performance measurement period relating to any such outstanding cash
performance award held by such participant. Any such payment to a participant who is a “covered
employee” under Section 162(m) of the Code shall be subject to the satisfaction of the applicable
performance criteria, certification by the Committee of the attainment of such performance
criteria, and the provisions of Paragraph 36 below and may not exceed the amount that the
participant would have been entitled to receive had the participant been an employee of the
Corporation on such payment date. Except as provided in this Paragraph 27, if the participant is
the subject of Early Retirement I or II, all cash performance awards held by such participant shall
be canceled and all of the participant’s awards thereunder shall terminate as of the effective date
of such Early Retirement. If the participant in the Plan is the subject of Early Retirement III,
all cash performance awards held by such participant shall be cancelled and all of the
participant’s rights thereunder shall terminate as of the effective date of such Early Retirement.

     28. Effect of Normal Retirement. If, before the date of payment, the participant retires on
or after age 62, the participant shall be entitled to receive on the payment date the same

10

 

amount of cash which the participant would have earned had such participant then been an
employee of the Corporation as of such date, subject to the satisfaction of the applicable
performance criteria in the case of a “covered employee” under Section 162(m) of the Code and
certification by the Committee of the attainment of such performance criteria.

     29. Effect of Other Terminations of Employment.

     (a) General Termination. If a participant’s employment with the Corporation is terminated for
any reason, whether voluntary, involuntary, or for cause (as defined as Paragraph 13 above), other
than those described in Paragraphs 27 or 28 above or in Paragraph 29(b) below, then his or her cash
performance awards shall be canceled and all of the participant’s rights under any award shall
terminate as of the effective date of the termination of such employment.

     (b) Pre-Payment Termination. If, after the end of a performance measurement period and before
the date of payment or distribution of any final award, a participant’s employment is terminated,
whether voluntarily or involuntarily for any reason other than for cause (as defined in Paragraph
13 above), the participant shall be entitled to receive on the payment or distribution date the
cash payment which the participant would have earned had the participant continued to be an
employee of the Corporation as of the payment or distribution date.

     30. Change in Control. The terms of any performance criteria and each participant who is
granted a cash performance award shall be subject to the terms of Paragraph 35 below.

E. GENERAL PROVISIONS

     31. Legal Compliance. It is the intent of the Corporation that the Plan comply in all
respects with applicable provisions of the Exchange Act, including Section 16 and Rule 16b-3, so
that any grant of options, SSARs or restricted stock to, or other transaction by, a participant who
is subject to the reporting requirements of Section 16(a) of the Exchange Act shall not result in
short-swing profits liability under Section 16(b) (except for any transaction exempted under
alternative Exchange Act rules or intended by such participant to be a non-exempt transaction). It
is also the intent of the Corporation that any compensation income realized in connection with
options, SSARs, restricted stock or any cash performance payments made under the Plan constitute
“performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code so that any
deduction to which the Corporation is entitled in connection with such compensation will not be
subject to the limitations of Section 162(m)(1) of the Code. Accordingly, if any provision of the
Plan or any agreement relating to an option or SSAR grant, a restricted stock award or cash
performance award does not comply with the requirements of Rule 16b-3 as then applicable to any
such transaction so that such a participant would be subject to Section 16(b) liability (except for
any transaction exempted under alternative Exchange Act rules or intended by such participant to be
a non-exempt transaction), or if any provision of the Plan or any agreement relating to an option
or SSAR grant, a restricted stock award or cash performance award would limit, under Section
162(m)(1) of the Code, the amount of compensation income to an optionee or participant that the
Corporation would otherwise be entitled to deduct, such provision shall be construed or deemed
amended to the extent necessary to conform to such requirements, or to eliminate such deductibility
limitation, and the participant shall be deemed to have consented to such construction or
amendment.

11

 

     32. Withholding Taxes. The Corporation shall make arrangements for the collection of the
minimum amount of Federal, State or local taxes of any kind required to be withheld by law with
respect to any transactions effected under the Plan. The obligations of the Corporation under the
Plan shall be conditional on satisfaction of such obligations and the Corporation, to the extent
permitted by law, shall have the right to deduct any such taxes from any payment of any kind
otherwise due to or with respect to a participant. A participant shall be solely responsible for
any tax or other amounts payable with respect to amounts included in participant’s income under
Section 409A of the Code in respect of awards received under the Plan, including penalties or
interest.

     33. Effect of Recapitalization or Reorganization. The obligations of the Corporation with
respect to an option, SSAR, restricted stock award or cash performance award granted under the Plan
shall be binding upon the Corporation, its successors or assigns, including any successor or
resulting company either in liquidation or merger of the Corporation into another company owning
all the outstanding voting stock of the Corporation or in any other transaction whether by merger,
consolidation or otherwise under which such succeeding or resulting company acquires all or
substantially all the assets of the Corporation and assumes all or substantially all its
obligations, unless options or SSARs are terminated in accordance with Paragraph 14.

     34. Employment Rights and Obligations. Neither the granting of any option or SSAR, nor the
making of a restricted stock or cash performance award under the Plan, nor the provisions related
to a change in control of the Corporation (as defined below) or a Person (as defined below) seeking
to effect a change in control of the Corporation, shall alter or otherwise affect the rights of the
Corporation to change any and all the terms and conditions of employment of any participant
including, but not limited to, the right to terminate such participant’s employment.

     35. Change in Control. Each participant, upon acceptance of a grant of options, SSARs,
restricted stock award or cash performance award, and as a condition to such grant or award, shall
be deemed to have agreed that, in the event any Person begins a tender or exchange offer,
circulates a proxy to shareholders, or takes other steps seeking to effect a change in control of
the Corporation (as defined below), such participant will not voluntarily terminate his or her
employment with the Corporation or with a direct or indirect subsidiary of the Corporation, as the
case may be, and, unless terminated by the Corporation or such subsidiary, will continue to render
services to the Corporation or such subsidiary until such Person has abandoned, terminated or
succeeded in such efforts to effect a change in control.

     In the event of a change in control,

               (i) all options and SSARs to purchase or acquire shares of common stock of the Corporation
shall immediately vest and become exercisable in accordance with the terms of the appropriate
stock option or SSAR agreement;

               (ii) all outstanding restrictions, including any performance criteria, with respect to any
restricted stock shall immediately expire and be deemed to have been satisfied;

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               (iii) with respect to cash performance award grants:

                    (A) all cash performance awards outstanding shall immediately vest and become immediately due
and payable;

                    (B) the performance measurement period of all cash performance awards outstanding shall
terminate on the last day of the month prior to the month in which the change in control occurs;

                    (C) the participant shall be entitled to a cash payment the amount of which shall be
determined in accordance with the terms and conditions of the Plan and the appropriate cash
performance award agreement, which amount shall be multiplied by a fraction, the numerator of which
is the actual number of months in the performance measurement period (as determined in accordance
with clause (iii)(B) above) and the denominator of which is 36 (or 48 if the performance
measurement period established at the date of grant is four (4) years or more); and

                    (D) the Continuing Directors (as defined in Article Fourteenth of the Corporation’s
Certificate of Incorporation) shall promptly determine whether the participant is entitled to any
performance award, and any performance award payable shall be paid to the participant promptly but
in no event more than five (5) days after a change in control;

               (iv) the Continuing Directors shall have the sole and complete authority and discretion to
decide any questions concerning the application, interpretation or scope of any of the terms and
conditions of any grant, award or participation under the Plan, and their decisions shall be
binding and conclusive upon all interested parties; and

               (v) other than as set forth above, the terms and conditions of all grants and awards shall
remain unchanged.

     A “change in control” shall be deemed to have taken place upon the occurrence of any of the
following events (capitalized terms are defined below):

               (i) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Corporation (not including in the securities beneficially owned by such Person any securities
acquired directly from the Corporation or its Affiliates) representing 20% or more of either the
then outstanding shares of common stock of the Corporation or the combined voting power of the
Corporation’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner
in connection with a transaction described in clause (A) of paragraph (iii) below; or

               (ii) the following individuals cease for any reason to constitute a majority of the number of
directors then serving: individuals who, on January 1, 2006, constituted the Board and any new
director (other than a director whose initial assumption of office is in connection with an actual
or threatened election contest, including but not limited to a consent solicitation, relating to
the election of directors of the Corporation) whose appointment or election by the Board or
nomination for election by the Corporation’s stockholders was approved or recommended by a vote of
at least two-thirds (2/3) of the directors in office at the time of such approval or recommendation
who either were directors on January 1, 2006 or whose

13

 

appointment, election or nomination for election was previously so approved or recommended; or

               (iii) there is consummated a merger or consolidation of the Corporation or any direct or
indirect subsidiary of the Corporation with any other corporation, other than (A) any such merger
or consolidation after the consummation of which the voting securities of the Corporation
outstanding immediately prior to such merger or consolidation continue to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity or any
parent thereof) at least 50% of the combined voting power of the voting securities of the
Corporation or such surviving entity or any parent thereof outstanding immediately after such
merger or consolidation, or (B) any such merger or consolidation effected to implement a
recapitalization of the Corporation (or similar transaction) in which no Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Corporation (not including in the
securities Beneficially Owned by such Person any securities acquired directly from the Corporation
or its Affiliates) representing 20% or more of either the then outstanding shares of common stock
of the Corporation or the combined voting power of the Corporation’s then outstanding securities;
or

               (iv) the stockholders of the Corporation approve a plan of complete liquidation or dissolution
of the Corporation or there is consummated an agreement for the sale or disposition by the
Corporation of all or substantially all of the Corporation’s assets, other than a sale or
disposition by the Corporation of all or substantially all of the Corporation’s assets to an
entity, at least 50% of the combined voting power of the voting securities of which are owned by
stockholders of the Corporation in substantially the same proportions as their ownership of the
Corporation immediately prior to such transaction or series of transactions.

               (v) Notwithstanding the foregoing, with respect to a cash performance award or any other award
that is determined to be deferred compensation subject to the requirements of Section 409A of the
Code, the Corporation will not be deemed to have undergone a change in control for the purposes of
this Plan and with respect to any and all clauses of this Paragraph 35, unless the Corporation is
deemed to have undergone a change in the ownership or effective control of the Corporation or in
the ownership of a substantial portion of the assets of the Corporation (as such terms are defined
in Section 409A of the Code and the Treasury regulations issued thereunder).

     For purposes of this Paragraph 35, the following terms shall have the meanings indicated:

               (i)  “Affiliate” shall have the meaning set forth in Rule 12b-2 under Section 12 of the
Exchange Act.

               (ii) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act,
except that a Person shall not be deemed to be the Beneficial Owner of any securities which are
properly reported on a Form 13-F.

               (iii) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

               (iv) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
and used in Sections 13(d) and 14(d) thereof, except that such term

14

 

shall not include (i) the Corporation or any of its Affiliates, (ii) a trustee or other
fiduciary holding securities under an employee benefit plan of the Corporation or any of its
Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such
securities or (iv) a corporation owned, directly or indirectly, by the stockholders of the
Corporation in substantially the same proportions as their ownership of stock of the Corporation.

     36. Non-compete. (a) Any Early Retirement taken by any participant and the benefits thereof,
as contemplated in Paragraphs 11, 21 and 27, unless such benefits are waived in writing by the
participant, shall be subject to the provisions of this Paragraph 36. Any participant who is the
beneficiary of any such Early Retirement shall be deemed to have expressly agreed not to compete
with the Corporation or any subsidiary of the Corporation at which such participant was employed at
any time in the three (3) years immediately prior to termination of employment, as the case may be,
in the geographic area in which the Corporation or such subsidiary actively carried on business at
the end of the participant’s employment there, for the period with respect to which such Early
Retirement affords the participant enhanced benefits, which period shall be, (a) with respect to
stock options or SSARs, the additional period allowed the participant for the vesting and exercise
of options or SSARs outstanding at termination of employment, (b) with respect to restricted stock,
the period remaining after the participant’s termination of employment until the end of the
original restriction period for such restricted stock, and (c) with respect to cash performance
awards granted under the Plan, the period until the payment date following the end of the last
applicable performance period.

     (b) In the event that a participant shall fail to comply with the provisions of this Paragraph
36, the Early Retirement shall be automatically rescinded and the participant shall forfeit the
enhanced benefits referred to above and shall return to the Corporation the economic value
theretofore realized by reason of such benefits as determined by the Committee. If the provisions
of this Paragraph 36, or the corresponding provisions of a stock option, SSAR, restricted stock
award or cash performance award agreement, shall be unenforceable as to any participant, the
Committee may rescind the benefits of any such Early Retirement with respect to such participant.

     (c) If any provision of this Paragraph 36, or the corresponding provisions of a stock option,
SSAR, restricted stock award or cash performance award agreement, is determined by a court to be
unenforceable because of its scope in terms of geographic area or duration in time or otherwise,
the Corporation and the participant agree that the court making such determination is specifically
authorized to reduce the duration and/or geographical area and/or other scope of such provision
and, in its reduced form, such provision shall then be enforceable; and in every case the remainder
of this Paragraph 36, or the corresponding provisions of a stock option, SSAR, restricted stock
award or cash performance award agreement, shall not be affected thereby and shall remain valid and
enforceable, as if such affected provision were not contained herein or therein.

     37. Interpretation. The Committee shall have the sole and complete authority and discretion
to decide any questions concerning the application, interpretation or scope of any of the terms and
conditions of the Plan, stock option, SSAR, restricted stock award or cash performance award
agreement entered into pursuant to the Plan, and its decisions shall be binding and conclusive upon
all interested parties. Reference to any statute or regulation in the

15

 

Plan shall mean such statute or regulation in effect from time to time and shall include any
successor statute or regulation.

     38. Amendment. Except as expressly provided in the next sentence, the Board of Directors may
amend the Plan in any manner it deems necessary or appropriate (including any of the terms,
conditions or definitions contained herein), or terminate the Plan at any time prior to January 31,
2015; provided, however, that any such termination will not affect the validity of
any then outstanding options, SSARs, restricted stock awards or cash performance awards previously
granted under the Plan, as the case may be. Without the approval of the Corporation’s
stockholders, the Board of Directors cannot: (a) increase the maximum number of shares covered by
the Plan or change the class of employees eligible to receive options, or SSARs, or restricted
stock or cash performance awards; (b) reduce the exercise price of any option or base price of an
SSAR below the fair market value of the Common Stock on the date of the option or SSAR grant; (c)
extend beyond 120 months from the date of the grant the period within which an option or SSAR may
be exercised; or (d) make any other amendment to the Plan that would constitute a modification,
revision or amendment requiring shareholder approval pursuant to any applicable law or regulation
or rule of the Exchange.

     39. Effective Date and Termination Date of Plan. The Plan shall become effective on February
1, 2005, and will terminate on January 31, 2015, provided that no ISOs shall be granted under the
Plan after February 11, 2014. No non-qualified stock options, SSARs, restricted stock or cash
performance awards shall be granted after January 31, 2015. The amendments to the Plan adopted
November 3, 2005 and February 2, 2006 became effective January 1, 2006. The Plan is hereby amended
effective January 1, 2009 to comply with the provisions of Section 409A of the Code. For the
period from January 1, 2005 to December 31, 2008, the Plan was administered in good faith
compliance with Section 409A of the Code and applicable guidance issued by the Treasury Department
and the Internal Revenue Service.

     40. Foreign Jurisdictions. The Committee may adopt, amend, and terminate such arrangements,
not inconsistent with the intent of the Plan, as it may deem necessary or desirable to make
available tax or other benefits of the laws of foreign jurisdictions to participants who are
subject to such laws.

     41. Governing Law. The Plan and all grants, options, SSARs, awards and payments made
hereunder shall be governed by and interpreted in accordance with the laws of the State of New
York.

     42. Special Rules for Specified Employees. Notwithstanding any provision of the Plan to the
contrary, upon the participant’s termination of employment for any reason other than death, if the
Corporation determines that the participant is a “specified employee” (as determined by the Board
or by such committee or other body as the Board shall delegate) and that an award constitutes
“nonqualified deferred compensation” within the meaning of Section 409A, any payment or settlement
of such award due within the six-month period after the participant’s termination of employment
shall be made at the beginning of the seventh month following the date of termination of
employment. The provisions of this Paragraph 42 shall only apply if required to comply with
Section 409A of the Code.

16EX-10.10

Exhibit 10.10

DOVER CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As Amended and Restated as of January 1, 2009)

Article 1. Purpose of the Plan

     The purpose of this Dover Corporation Supplemental Executive Retirement Plan is to promote the
long-term success of the Company by providing a uniform minimum level of retirement benefits to
salaried officers and other key executives on whom major responsibility for the present and future
success of the Company rests.

Article 2. Definitions

2.01. “Actual Participant” means, subject to Article 3, an Employee who (a) has received a
SERP Designation as an Actual Participant, and (b) has been granted an Award in each of five (5)
years (not necessarily consecutive) under an Incentive Plan. Stock options granted under the 1998
Supplemental Incentive Stock Option Program or any successor program (sometimes called the
Presidents’ Pool) shall not be considered in determining qualification as an Actual Participant.

2.02. “Administrator” means the Dover Corporation Pension Committee.

2.03. “Affiliated Company” means the Company and any other member of the controlled group
of corporations (within the meaning of Section 414(b) of the Code) of which the Company is a member
or an unincorporated trade or business which is under common control with the Company (within the
meaning of Section 414(c) of the Code). Except as otherwise determined by the Administrator, a
corporation or unincorporated trade or business shall not be considered as an Affiliated Company
during any period while it is not a member of such controlled group or under such common control.

2.04. “Applicable Percentage” means such percentages as are set forth in Appendix A to the
Plan.

2.05. “Award” means the grant of either a stock option or stock appreciation right award
or a cash performance award under an Incentive Plan, provided that (i) the grant of a stock
option under the 1998 Supplemental Incentive Stock Option Program or any successor plan or program
(sometimes called the Presidents’ Pool) shall not constitute an Award, and (ii) all stock option
awards, stock appreciation rights awards and cash performance awards granted in any calendar year
shall constitute only one Award.

 

 

2.06. “Beneficiary” means the person or persons designated by an Actual Participant to
receive any payments which may be required to be paid pursuant to the Plan following his or her
death, or, in the absence of any such designated person, the Actual Participant’s estate;
provided, however, that a married Actual Participant’s Beneficiary shall be his or
her spouse unless the spouse consents in writing to the designation of a different Beneficiary.
For purposes hereof, Beneficiary may be a natural person or an estate or trust, except as otherwise
provided in Section 4.04(f).

2.07. “Code” means the Internal Revenue Code of 1986, as amended from time to time.

2.08. “Company” means Dover Corporation and any successor thereto.

2.09. “Compensation” means an Employee’s basic salary, bonuses (including payments deemed
by his or her employing Affiliated Company to be the equivalent of bonuses but excluding bonuses
paid in connection with hiring or terminations), and commissions paid or made available by an
Affiliated Company, including the portion of any such remuneration deferred under a qualified or
nonqualified deferred compensation plan or arrangement or contributed to a cafeteria plan, and,
effective January 1, 2001, any amount of the Employee’s authorized basic salary, bonuses or
commissions which the Employee voluntarily elects to forego (regardless of whether the Employee
receives non-cash remuneration in lieu of such foregone amount) and any non-cash compensation (as
valued by the Compensation Committee of the Company’s Board of Directors at the time of
authorization or as otherwise reasonably determined) given to an Employee expressly in lieu of cash
compensation. Other forms of remuneration, including but not limited to long-term incentive
compensation, shall not be included in an Employee’s Compensation.

2.10. “Death Benefit” means a death benefit payable pursuant to Section 5.01.

2.11. “Disability” means a disability which causes an Employee to be eligible to receive
disability benefits under the long-term disability insurance program of his or her employing
Affiliated Company, provided that any such disability meets the criteria specified in
Section 1.409A-(i)(4) of the Treasury Regulations, or, in the case of an Employee who does not meet
the criteria specified above, a disability which would cause the Employee to be determined to be
totally disabled by the Social Security Administration and eligible for social security disability
benefits. An Employee’s Disability shall be deemed to have ended on the last day of the last month
with respect to which he or she receives benefits described in the preceding sentence.

2.12 “Effective Date” of the Plan as amended and restated herein means January 1, 2009.
The original effective date of the Plan is January 1, 1997. For the period from January 1, 2005
through December 31, 2008, the Plan was administered in good faith compliance with Section 409A of
the Code and applicable guidance issued by the Treasury Department and the Internal Revenue
Service.

2.13. “Employee” means an employee of an Affiliated Company.

2

 

2.14. “Final Average Compensation” means 12 times the average of an Employee’s monthly
Compensation during the 60 consecutive complete calendar months of service during the 120
consecutive complete calendar months of service with an Affiliated Company prior to such person’s
ceasing to be an Employee during which his or her Compensation was the highest. Any month in which
Compensation was not received, by reason of a leave of absence, Disability or otherwise, shall be
omitted in determining a person’s Final Average Compensation. In the case of any periods of
part-time employment occurring in a Plan Year in which an Employee is credited with less than one
Year of Service, Compensation with respect to such periods of part-time service shall be
appropriately adjusted to a full-time basis. In the event that an Employee is paid an annual bonus
during the 12-month period commencing on his or her Termination Date, for purposes of calculating
such person’s Final Average Compensation the amount of such bonus (including the portion of any
such authorized bonus which such person elects to forego) shall be substituted for the amount of
the first bonus taken into account during the applicable 60-month period, but only if (i) the
60-month period used for purposes of the Final Average Compensation calculation includes such
person’s last full month of employment, and (ii) the effect of such substitution is to increase
such person’s Final Average Compensation.

2.15. “Grandfathered Benefit” means the benefit accrued under the Plan as of December 31,
2004 with respect to a Grandfathered Participant.

2.16. “Grandfathered Participant” means an Actual Participant who had attained age 55 and
completed 10 Years of Service as of December 31, 2004.

2.17. “Gross Benefit” has the meaning provided in Section 4.01(b).

2.18. “Incentive Plan” means the Dover Corporation 1995 Incentive Stock Option Plan and
1995 Cash Performance Program, the Dover Corporation 2005 Equity and Cash Incentive Plan, and any
predecessor or successor plan or program, provided that the 1998 Supplemental Incentive
Stock Option Program or any successor program (sometimes called the Presidents’ Pool) shall not
constitute an Incentive Plan.

2.19. “Non-Grandfathered Benefit” means any benefit which is not a Grandfathered Benefit.

2.20. “Non-Grandfathered Participant” means an Actual Participant who is not a
Grandfathered Participant.

2.21. “Normal Retirement Age” means age 65.

2.22. “Normal Retirement Date” means the first day of the month coinciding with or next
following the date an Actual Participant attains his or her Normal Retirement Age.

2.23. “Offset Benefits” has the meaning provided in Section 4.01(c).

3

 

2.24. “Plan” means this Dover Corporation Supplemental Executive Retirement Plan, as
amended from time to time.

2.25. “Plan Year” means the calendar year.

2.26 “Potential Participant” means an Employee who (a) has received a SERP Designation as a
Potential Participant, and (b) has been granted an Award in one or more years (not necessarily
consecutive) under an Incentive Plan but who has not met the requirements to become an Actual
Participant, including, without limitation, receipt of a SERP Designation as an Actual Participant.

2.27. “Prior Participant” has the meaning provided in Section 3.01.

2.28. “Prior Plan” means the Dover Corporation Supplemental Executive Retirement Plan, as
in effect prior to the adoption of this Plan.

2.29. “PSC Executive” means an Employee who became an Actual Participant prior to January
1, 2009 and who was at least age 40 on the Employee’s birthday that next followed his or her date
of hire or rehire with an Affiliated Company (or the date the Company or other Affiliated Company
acquired the Affiliated Company, if later), and was granted an Award not later than twenty four
(24) months following such Employee’s date of hire or rehire with an Affiliated Company (or the
date the Company or other Affiliated Company acquired the Affiliated Company, if later). An
Employee who became an Actual Participant on or after January 1, 2009 shall not be a PSC Executive.

2.30. “Retirement Benefit” means a retirement benefit payable pursuant to Section 4.01(a).

2.31. “SERP Designation” means a written designation by the Chief Executive Officer, Chief
Operating Officer or President of the Company that an Employee is an Actual Participant or a
Potential Participant.

2.32. “Specified Employee” means an Employee within the meaning of Section 409A(a)(2)(B)(i)
of the Code and any applicable regulations or other pronouncements issued by the Internal Revenue
Service with respect thereto. The determination of who the Specified Employees are as of any time
shall be made by the Company’s Board of Directors or by such committee, person or persons as such
Board of Directors shall delegate for such purpose.

2.33. “Termination Date” means the first day of the month coinciding with or next following
the date on which an Actual Participant has a Termination of Employment.

2.34. “Termination of Employment” means an Employee’s termination of employment with an
Affiliated Company, whether voluntary or involuntary, for any reason, including but not limited to
quitting or discharge, but other than a family or medical or other leave of absence, transfer of
employment to another Affiliated Company, incurring of a Disability,

4

 

or death in each instance that would meet the requirement to be considered a “Separation from
Service” within the meaning of Section 1.409A-1(h) of the Treasury Regulations.

2.35. “Years of Service” means (a) the time a person served as an Employee plus, (b) any
“Additional Years of Service” (as described below) credited to such person, calculated as
follows. A Year of Service means 12 consecutive months of service. Any period of service of less
than 12 consecutive months shall be counted on the basis of 1/12 of a Year of Service for each
month of service. For purposes of this definition, a month of service means any calendar month
during any part of which an Employee is employed by an Affiliated Company. Only an Employee who
became an Actual Participant prior to January 1, 2009 shall be eligible to receive Additional Years
of Service. An Employee who becomes an Actual Participant on or after January 1, 2009 shall not be
credited with any Additional Years of Service.

Additional Years of Service shall be credited as follows:

     If such an Actual Participant’s Termination of Employment occurs on or after January 1, 2003,
and the Actual Participant is a PSC Executive, the Actual Participant shall be credited with
Additional Years of Service, the amount of which shall be determined by dividing by forty-eight
(48) the number of whole and partial months which elapsed from the date of the Actual Participant’s
25th birthday to the Actual Participant’s date of hire or rehire with an Affiliated
Company (or the date the Company or other Affiliated Company acquired the Affiliated Company, if
later), excluding any number of whole months during that time in which such Actual Participant was
an Employee. For purposes of this definition, a month of service means any calendar month during
any part of which an Employee is employed by an Affiliated Company and shall not duplicate any
service granted in paragraph (a) above.

Article 3. Participation

3.01 Participation as of Effective Date. Each person who, immediately prior to the
Effective Date, was entitled to receive benefits under the Plan upon his or her Termination of
Employment or death (a “Prior Participant”), shall retain such entitlement as of the
Effective Date, subject to the provisions of Section 3.02(b).

3.02 Participation after Effective Date.

     (a) After the Effective Date, an Employee who is not a Prior Participant shall become an
Actual Participant only upon satisfaction of all the requirements stated in the definition of
Actual Participant.

     (b) Notwithstanding the provisions of Section 3.01, each Prior Participant shall be an Actual
Participant after December 31, 2003 only if he or she received a SERP Designation as an Actual
Participant effective as of a date not later than December 31, 2003; provided,
however, that a Prior Participant whose Termination of Employment,

5

 

Disability or death occurred on or before December 31, 2003 shall be deemed to have received a
SERP Designation as an Actual Participant regardless of whether such Prior Participant had
previously received a SERP Designation.

3.03 Revocation of SERP Designation. The Chief Executive Officer, Chief Operating Officer
or President of the Company may revoke the SERP Designation of any Potential Participant or Actual
Participant at any time. If such person is a Potential Participant, the status of such person as a
Potential Participant shall cease as of the date of the revocation. If such person is an Actual
Participant, such person’s Retirement Benefit shall be determined as if such person had incurred a
Termination of Employment as of the date of revocation, so that, for purposes of determining such
person’s Gross Benefit, such person’s Applicable Percentage, Final Average Compensation and Years
of Service shall all be determined as of the date of revocation and such person’s Offset Benefits
also shall be determined as of such date.

The Chief Executive Officer, Chief Operating Officer or President of the Company may reinstate the
SERP Designation of any Employee whose SERP Designation was revoked. If such Employee was an
Actual Participant at the time of revocation, or if such Employee was a Potential Participant at
the time of revocation and later became an Actual Participant, his or her Retirement Benefit shall
be determined as if such Employee’s SERP Designation had never been revoked.

3.04 Cessation of Participation. An Actual Participant shall cease to be an Actual
Participant on the date that all distributions due such Actual Participant or his or her
Beneficiary have been made.

Article 4. Retirement Benefit

4.01 Amount of Benefit.

     (a) Each Actual Participant shall be entitled under this Plan following his or her retirement
or other Termination of Employment to a benefit (the “Retirement Benefit”) equal to the
Actual Participant’s Gross Benefit reduced by his or her Offset Benefits.

     (b) Except as provided in Section 3.03, the Gross Benefit under the Plan, expressed as a
single life annuity commencing on the Actual Participant’s Termination Date, shall be the
Applicable Percentage of the product of (i) the Actual Participant’s Years of Service (not to
exceed 30) and (ii) 2% of the Actual Participant’s Final Average Compensation.

     (c) The Actual Participant’s Offset Benefits shall consist of the following benefits to which
the Actual Participant is or will become entitled, or which the Actual Participant received prior
to the date of determination:

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          (1) All benefits paid or accrued under all qualified or nonqualified defined benefit or
defined contribution retirement plans sponsored by an Affiliated Company (including, without
limitation, any amounts paid to the Actual Participant under this Plan prior to the date of
determination); provided, however, that non-qualified defined benefit and defined
contribution benefits with respect to Non-Grandfathered Benefit accruals shall be estimated at the
time that the person becomes an Actual Participant in the Plan (or, if later, January 1, 2009) to
be the amount of benefit that will be payable at the Actual Participant’s Normal Retirement Date
and such estimate will subsequently be adjusted to reflect any increases or decreases in such
benefit only if such adjustment will not cause a violation of Code Section 409A to occur.
Notwithstanding the foregoing, only the portion of any such benefit attributable to Affiliated
Company contributions shall be taken into account. For purposes of the preceding sentence,
Affiliated Company contributions shall not include an Actual Participant’s elective deferrals under
any such plan, or earnings credited to any such elective deferrals to the extent such earnings are
based on a reasonable interest rate or on one or more predetermined investments.

          (2) The employer portion of any social security or other retirement benefits provided by any
Federal, state, local, or foreign government, provided, however, that the offset of
any such foreign benefit shall not violate the provisions of Section 409A of the Code. Such
employer portion shall be equal, in the case of a social security benefit, to the employer portion
of the Actual Participant’s projected social security benefit (at the Actual Participant’s social
security full benefit retirement age) multiplied by a fraction the numerator of which is the Actual
Participant’s Years of Service, excluding any such Actual Participant’s Additional Years of
Service, and the denominator of which is 35. For purposes of determining an Actual Participant’s
projected social security benefit, it shall be assumed that the social security wage base remains
constant in years following the Actual Participant’s Termination of Employment and that in each of
the 35 years prior to the Actual Participant’s social security full benefit retirement age he or
she has earned income of at least the social security wage base applicable to such year.

     (d) In the event an Offset Benefit (other than a US social security benefit or social
insurance or similar non-US benefit) is not payable in the form of a single life annuity commencing
on the Actual Participant’s Termination Date, the offset calculation in Section 4.01(c) shall be
performed using such actuarial and other adjustments as the Administrator shall determine.

     (e) The Grandfathered Benefit of a Grandfathered Participant who has elected pursuant to
Section 4.04 to have payment of his or her Grandfathered Benefit commence after his or her
Termination Date shall be calculated as follows: (i) the Grandfathered Benefit shall be calculated
in accordance with the foregoing provisions of this Section 4.01 as if payment of the Grandfathered
Benefit would commence as of the Grandfathered Participant’s Termination Date and then (ii) such
Grandfathered Benefit shall be multiplied by a fraction, the numerator of which is the Applicable
Percentage that would have applied if the Grandfathered Participant’s Termination of Employment had
occurred on the date as of which payment of the Grandfathered Benefit is to commence,
and the denominator of

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which is the Applicable Percentage in effect as of the date the
Grandfathered Participant’s Termination of Employment actually occurred.

     (f) Notwithstanding any provision of the Plan to the contrary, if an Actual Participant who is
a former Employee is rehired by an Affiliated Company and at the time of rehire the Actual
Participant is receiving benefit payments under the Plan, payment of such benefits shall continue
to be paid in accordance with the form of payment in effect with respect to such benefit. If such
Actual Participant who has been rehired has received a SERP Designation as an Actual Participant as
of, or subsequent to, his or her date of rehire, upon such Actual Participant’s subsequent
Termination of Employment such Actual Participant’s benefits with respect to the period after the
date of his or her rehire shall be calculated under the Plan based on the Actual Participant’s
Years of Service and Compensation after the date of his or her rehire (provided that the
sum of the Actual Participant’s Years of Service prior to his or her rehire date plus his or her
Years of Service after his or rehire date shall not exceed thirty (30) years). If such Actual
Participant has not received a SERP Designation as an Actual Participant following his or her date
of rehire (and thus has accrued no additional benefits under the Plan following his or her date of
rehire), such Actual Participant shall not be entitled to receive any additional benefits in
respect of his or her Years of Service subsequent to his date of rehire.

     (g)(1) The benefit of an Actual Participant whose SERP Designation has been revoked shall be
determined as if such person had incurred a Termination of Employment on the date his or her SERP
Designation was revoked, so that his of her Applicable Percentage, Final Average Compensation,
Gross Benefit and Offset Benefit shall all be determined as of such date.

     (2) Distribution of the benefit of a Participant whose SERP Designation has been revoked
shall be made at the time that the Participant has incurred an actual Termination of Employment and
shall be made in accordance with the applicable provisions of Section 4.02, 4.03, 4.04 or 4.05 and
the amount to be distributed will be calculated as follows: The benefit calculated in (1) above
shall be multiplied by a fraction, the numerator of which is the Applicable Percentage based on the
Participant’s age at the time of the Participant’s Termination of Employment and the denominator of
which is the Applicable Percentage in effect as of the date that the Participant’s designation as
an Actual Participant was revoked.

     (h) Notwithstanding any provision of the Plan to the contrary, the benefits described herein
shall in no event be less than the benefit described in Appendix B with respect to certain
participants who as of the date hereof are participants in The Heil Co. Supplemental Executive
Retirement Plan, the provisions of which are superseded and replaced by the provisions set forth
herein.

4.02 Automatic Cash-Outs.

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     (a) Notwithstanding the provisions of Sections 4.03 and 4.04, in the case of any Actual
Participant who has a Termination of Employment and:

          (1) if the lump-sum value of his or her Non-Grandfathered Benefit under the Plan is $500,000
or less, the lump-sum value of such benefit shall be paid out as soon as practicable after his or
her Termination of Employment, but in no event later than 90 days after his or her Termination of
Employment; and

          (2) if the lump-sum value of his or her Grandfathered Benefit is $50,000 or less, subject to
Section 4.02(c), the lump-sum value of such benefit shall be paid out within 30 days after his or
her Termination of Employment;

     (b) In the case of an Actual Participant who has a Termination of Employment and the lump-sum
value of his or her Non-Grandfathered Benefit exceeds $500,000, 75% of the lump-sum value of such
benefit shall be paid out as soon as practicable after his or her Termination Date, but in no event
later than 90 days after his or her Termination Date, and 20% of the remaining lump-sum value shall
be paid on or about each of the next subsequent five anniversary dates of the date as of which the
initial lump-sum payment was made or, if the initial payment was subject to Section 4.02(c), the
anniversary of the date on which the initial payment would have been made if Section 4.02(c) were
not applicable, but in no event later than 90 days after the applicable anniversary date.

     (c) Notwithstanding the foregoing, the Non-Grandfathered Benefit of an Actual Participant who
on the date of his or her Termination of Employment is a Specified Employee shall be (i) calculated
as of the Actual Participant’s Termination Date, (ii) increased with interest at the “First Segment
Rate” (within the meaning of Section 430(h)(2)(C)(i) of the Code) as such rate is in effect on the
date as of which the benefit is to be paid (or commence to be paid) and (iii) paid (or commence to
be paid) as of the first day of the month coincident with or next following six months after his or
her Termination Date, but in no event later than 90 days after such date.

4.03 Automatic Payments in Other Circumstances. In the case of any Grandfathered
Participant to whom Section 4.02 does not apply and for whom no valid election under Section 4.04
is in effect, such Grandfathered Participant’s Grandfathered Benefit shall be paid in the manner
set forth in this Section 4.03.

     (a) If the Grandfathered Participant participates in one or more qualified defined benefit
plans sponsored by an Affiliated Company, his or her Grandfathered Benefit shall commence at the
same time and be paid in the same form as his or her benefit under that qualified plan. If the
Grandfathered Participant is covered under more than one such plan, the plan in which he or she has
the greatest benefit will be controlling.

     (b) If the Grandfathered Participant does not participate in any qualified defined benefit
plan sponsored by an Affiliated Company, his or her Grandfathered Benefit shall be paid as an
actuarially reduced 50% joint and survivor annuity (if the Grandfathered Participant is married)
with the Grandfathered Participant’s spouse as the joint annuitant

9

 

thereof, or a single life annuity (if the Grandfathered Participant is unmarried), commencing
in either case at his or her Normal Retirement Date (or, if later, the first day of the month
coinciding with or next following the date of his or her actual retirement).

4.04 Election of Optional Forms of Grandfathered Benefit.

     (a) A Grandfathered Participant may file an election with the Administrator, on such form as
the Administrator shall prescribe, specifying (i) with respect to any Grandfathered Benefit, the
form in which such benefit is to be paid, and (ii) the time at which such benefit is to commence in
the event of the Grandfathered Participant’s Termination of Employment before his or her Normal
Retirement Age. Such election may, subject to Section 4.04(c), be changed at any time.

     (b) If a valid election is in effect pursuant to this Section 4.04(a), except as otherwise
provided in Section 4.02, a Grandfathered Participant’s Grandfathered Benefit shall be paid in the
form specified in such election. Such Grandfathered Benefit shall commence (i) on the
Grandfathered Participant’s Normal Retirement Date (or, if later, the first day of the month
coinciding with or next following the date of the Grandfathered Participant’s actual retirement) if
the Grandfathered Participant retires at or after his or her Normal Retirement Age, and (ii) in
other cases, on the date specified in his or her election.

     (c) An election or change in election pursuant to Section 4.04(a) shall be valid only if filed
with the Administrator either (i) by December 31, 1997 or within 90 days after a Grandfathered
Participant became an Actual Participant, whichever is later, or (ii) at least 12 months before he
or she retires or otherwise terminates employment. Notwithstanding the preceding sentence, if a
Grandfathered Participant whose most recent valid election with respect to his or her Grandfathered
Benefit is for an annuity form of benefit demonstrates to the satisfaction of the Administrator
that a relevant change in family circumstances has occurred since the filing of such election, such
Grandfathered Participant may change his or her election to a different form of annuity commencing
on the same date as that specified on such prior election, or may designate a new Beneficiary,
without regard to such 12-month requirement.

     (d) If, pursuant to Section 4.04(c), a change in a Grandfathered Participant’s election is not
valid, the valid election previously in effect shall determine the form and timing of his or her
Grandfathered Benefit.

     (e) The forms of benefit that a Grandfathered Participant may elect under the Plan with
respect to his or her Grandfathered Benefit are (i) a single life annuity, (ii) a single life
annuity with 60-month period certain, (iii) a single life annuity with 120-month period certain, or
(iv) a 100% or 50%, or, effective with respect to distributions commencing on and after January 1,
2008, a 75% joint and survivor annuity. A lump-sum payment generally is not available as an
elective form of benefit. A Grandfathered Participant may indicate on an election that he or she
wishes to receive his or her Grandfathered Benefit in a lump-sum, or in a combination of lump-sum
and installment
payments, but in that event must also indicate the form in which he or she wishes the

10

 

benefit to be paid if the lump-sum payment or combination lump-sum and installment payments request is
denied. Requests for lump-sum payments or combination lump-sum and installment payments will be
considered by the Administrator on a case-by-case basis, and the granting of any such request shall
be within the Administrator’s sole discretion.

     (f) A Grandfathered Participant who elects a joint and survivor form of benefit with respect
to his or her Grandfathered Benefit shall designate his or her Beneficiary, who must be a natural
person, in conjunction with such election. In the event of such Beneficiary’s death before payment
of the Grandfathered Benefit commences, the Grandfathered Benefit shall be paid in the form of a
single life annuity unless he or she has filed a valid change in election pursuant to Section
4.04(c).

4.05 Calculation of Optional Forms of Benefit. If all or a portion of a Retirement Benefit
is payable under Sections 4.02, 4.03 or 4.04 in a form of benefit other than a single life annuity,
such benefit shall be converted to the applicable optional payment form using the annuity
conversion or other applicable factors provided in Program I of the Dover Corporation Pension Plan
as in effect on such Actual Participant’s Termination Date. Notwithstanding the foregoing
sentence, (a) the interest rate that is used to calculate the lump sum value of a Non-Grandfathered
Benefit of an Actual Participant who at the time of his or her Termination of Employment had not
attained age 55 and completed 10 Years of Service shall not be less than the discount rate used for
purposes of financial reporting for the Dover Corporation Pension Plan, as such rate is in effect
on such Actual Participant’s Termination Date; and (b) the lump sum payable with respect to a
Grandfathered Benefit shall not be greater than the present value of the benefit the Grandfathered
Participant is entitled to receive in accordance with the terms of the Plan (including applicable
limits under the Code) as in effect on October 3, 2004, based on the actual form and time of
payment, without taking into consideration any services rendered by the Actual Participant after
December 31, 2004, or any other events that occur after such date and affect the amount of, or the
entitlement to, the benefit (other than the Participant’s election with respect to the time or form
of an available benefit), except to the extent that a change of any such terms may be taken into
consideration without causing a violation of Section 409A of the Code to occur.

4.06 Disability. An Employee with a SERP Designation who incurs a Disability as an
Employee shall continue to accrue Years of Service during his or her period of Disability. If such
Employee is or becomes an Actual Participant, upon such Actual Participant’s subsequent Termination
of Employment or death, he or she (or his or her Beneficiary) shall be entitled to receive a
distribution of his or her Retirement Benefit or Death Benefit pursuant to the other provisions of
the Plan. For purposes of calculating such Retirement Benefit or Death Benefit, the Actual
Participant’s Final Average Compensation shall be determined as of the commencement of his or her
Disability.

Article 5. Death Benefit

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5.01 In the event of an Actual Participant’s death prior to the commencement of payment of any
portion of his or her Retirement Benefit, the Actual Participant’s Beneficiary shall be paid within
30 days after the Administrator receives notification of the Actual Participant’s death, a lump-sum
Death Benefit equal to the Retirement Benefit the Actual Participant would have received had he or
she had a Termination of Employment immediately before his or her death (or on the Actual
Participant’s actual date of Termination of Employment, if earlier) and elected to receive his or
her benefit in a lump-sum. In calculating such Retirement Benefit, the amount of any Offset
Benefits shall be determined without regard to the fact of the Actual Participant’s death.

In the event of a Grandfathered Participant’s death after his or her benefit has commenced in the
form of an annuity described in Section 4.03(a) of (b) or Section 4.04(e), benefits, if any, shall
be paid in accordance with the form of annuity in which the benefits are being paid.

In the event of a Grandfathered Participant’s or Non-Grandfathered Participant’s death during such
time as installment payments are being made to such Grandfathered Participant or Non-Grandfathered
Participant, any remaining such payments shall be made to the Grandfathered Participant’s or
Non-Grandfathered Participant’s Beneficiary at the same time or times as such payments would have
been made had the Grandfathered Participant or Non-Grandfathered Participant survived to the
applicable payment date or dates.

Article 6. Administration

6.01. This Plan shall be administered by the Administrator. The Administrator shall have
discretionary authority to interpret the Plan and to adopt rules and regulations consistent with
the Plan. The Administrator’s good-faith determination with respect to any issue relating to the
interpretation of the Plan shall be conclusive and final.

Article 7. General Provisions

7.01 No Contract of Employment. The establishment of the Plan shall not be construed as
conferring any legal rights upon any Actual Participant or Potential Participant for a continuation
of employment, nor shall it interfere with the rights of any Affiliated Company to discharge an
Actual Participant or Potential Participant and to treat him or her without regard to the effect
which such treatment might have upon him or her as an Actual Participant or Potential Participant
in the Plan.

7.02 Withholding. As a condition to an Actual Participant’s entitlement to benefits
hereunder, the Company shall have the right to deduct (or cause to be deducted) from any amounts
otherwise payable to the Actual Participant, whether pursuant to the Plan or
otherwise, or otherwise to collect from the Actual Participant, any required withholding taxes with
respect to benefits under the Plan.

12

 

7.03 Anti-Alienation Provisions. Subject to any applicable law, no benefit under the Plan
shall be subject in any manner to, nor shall the Company be obligated to recognize, any purported
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any
attempt to do so shall be void. No such benefit shall in any manner be liable for or subject to
garnishment, attachment, execution, or a levy, or liable for or subject to the debts, contracts,
liabilities, engagements, or torts of the Actual Participant.

7.04 Unfunded Benefits. The Plan is an unfunded plan maintained by the Company for the
purpose of providing deferred compensation for a select group of management or highly compensated
employees. The Plan shall not be construed as conferring on an Actual Participant any right,
title, interest, or claim in or to any specific asset, reserve, account, or property of any kind
possessed by the Company. To the extent that an Actual Participant or any other person acquires a
right to receive payments from the Company, such rights shall be no greater than the rights of an
unsecured general creditor.

7.05 Claim for Benefits. Any claim for benefits under the Plan shall be made in writing to
the Administrator. If a claim is wholly or partially denied, the Administrator shall so notify the
claimant (or his or her authorized representative), either in writing or electronically, within 90
days after receipt of the claim, unless the Administrator determines that special circumstances
warrant an extension of time for processing the claim. If the Administrator determines that an
extension of time for processing is required, the Administrator shall furnish written notice of the
extension to the claimant (or his or her authorized representative) prior to termination of the
initial 90-day period, but in no event shall the extension exceed a period of 90 days from the end
of such initial period. The notice of extension shall indicate the special circumstances requiring
an extension of time and the date by which the Administrator expects to render the final decision.

     The notice of denial shall state (i) the specific reason(s) for the adverse determination,
(ii) specific references to the pertinent Plan provisions upon which the determination is based,
(iii) a description of any additional material or information necessary to perfect the claim
together with an explanation of why such material or information is necessary, and (iv) an
explanation of the Plan’s claims review procedure, including a statement of the claimant’s right to
bring a civil action under section 502(a) of ERISA following an adverse benefit determination on
review.

     Within 60 days after the claimant’s receipt of notice of the adverse determination, the
claimant (or his or her authorized representative) may (i) file a request with the Administrator
that it conduct a full and fair review of the denial of the claim, (ii) review pertinent documents,
and (iii) submit questions and comments to the Administrator in writing. The claimant (or his or
her authorized representative) shall be provided, upon request and without charge, reasonable
access to, and copies of, all documents, records, and other information relevant to the claim for
benefits.

     The decision by the Administrator with respect to the review must be given within 60 days
after receipt of the request, unless special circumstances require an extension, in

13

 

which case the
60-day period shall be extended to 120 days upon notice to the claimant to that effect. In no
event shall the decision be delayed beyond 120 days after receipt of the request for review. The
decision shall be written in a manner calculated to be understood by the claimant and in the case
of an adverse benefit determination shall include (i) specific reasons for the adverse
determination, (ii) a specific reference to the Plan provisions upon which the decision is based,
(iii) a statement that the claimant may receive, upon request and without charge, reasonable access
to, and copies of, all documents, records, and other information relevant to the claimant’s claim
for benefits, and (iv) a statement describing any voluntary appeal procedures offered by the Plan
and the claimant’s right to bring an action under section 502(a) of ERISA.

     A claimant is required to exhaust the Plan’s claims and appeal procedure before bringing an
action in federal or state court.

7.06 Incapacity. If the Administrator determines that any person to whom a benefit is
payable under the Plan is unable to care for his or her affairs because of illness or accident, any
payment due may be paid to the individual’s spouse, child, parent, sibling, or to any person deemed
by the Administrator to have incurred expense for such person otherwise entitled to payment unless
a prior claim therefor shall have been made by a duly appointed guardian, committee, or other legal
representative.

7.07 Successor Entities. This Plan shall be binding upon the successors and assigns of the
Company. The Company shall require any successor (whether direct or indirect, and whether by
purchase, merger, consolidation, or otherwise) to all or substantially all of the business or
assets of the Company, by written agreement to expressly assume and agree to perform the Company’s
obligations under the Plan in the same manner and to the same extent that the Company would be
required to perform them if no such succession had taken place. The provisions of this Section
7.07 shall continue to apply to each subsequent employer of the Actual Participant hereunder in the
event of any subsequent merger, consolidation, or transfer of assets of such subsequent employer.

7.08 Prior Plan. Effective as of the date of adoption of this Plan as of January 1, 1997,
the Prior Plan has been terminated, and no one is entitled to further benefits thereunder. In no
event shall the vested benefit under this Plan of any participant under the Prior Plan be less than
his or her vested benefit under the Prior Plan immediately prior to such termination.

7.09 Governing Law. The laws of the State of New York shall govern the construction of
this Plan and the rights and the liabilities hereunder of the parties hereto.

7.10 Plan Year. The plan year shall be the calendar year.

7.11 Headings. All headings are inserted solely for reference and shall not constitute a
part of this Plan, nor affect its meaning, construction, or effect.

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7.12 Limitation on Distributions to Covered Employees. Notwithstanding any other
provision of this Article 7, in the event that an Actual Participant is a “covered employee” as
defined in Section 162(m)(3) of the Code and any applicable regulations or other pronouncements
issued by the Internal Revenue Service with respect thereto, or would be a covered employee if any
benefits under the Plan were distributed in accordance with the provisions of the Plan described
above, the Committee may determine that the maximum amount which may be distributed with respect to
an Actual Participant’s benefits from the Plan in any Plan Year, shall not exceed one million
dollars ($1,000,000) less the amount of compensation paid to such Actual Participant in such Plan
Year which is not “performance-based” (as defined in Section 162(m)(4)(C) of the Code), which
amount shall be reasonably determined by the Company at the time of the proposed distribution;
provided, however, that the Company also delays the payment of all other amounts
that are not deductible in accordance with Section 162(m) of the Code which are scheduled to be
paid to such Actual Participant for that year and to any other similarly situated “covered
employees” for that year. Any amount which is not distributed to the Participant in a Plan Year as
a result of the limitation set forth in this Section 7.12 shall be distributed to the Participant
in the first Plan Year in which distribution of such amount is in compliance with the foregoing
limitation set forth in this Section 7.12 and with the provisions of Section 4.02(c).

7.13 Delayed Payments. Although it is intended that payments scheduled to be made under
the Plan shall be made as provided herein, in no event shall any such payment be made later than
the end of the calendar year in which the scheduled payment was to have been made, or, if later,
prior to the 15th day of the third month following the date as of which the scheduled
payment was to have been made; provided, however, that the Actual Participant or
Beneficiary shall not have any direct or indirect discretion to designate the taxable year in which
such payment pursuant to this Section 7.13 is to be made. For purposes hereof, the scheduled
payment date of a payment that is scheduled to be made during a 90-day period shall be the first
day of the 90-day period.

7.14 Discretion to Delay or Accelerate Payments in Certain Circumstances. Notwithstanding
any provision hereof to the contrary, the Committee shall have the discretion to modify the time or
schedule of payments to be made hereunder, but only in the circumstances described in Section
1.409A-3(j)(4) of the Treasury Regulations, or, subject to applicable provisions of Code Section
409A, as may be necessary to comply with applicable law.

Article 8. Change of Control

8.01 Definition of Change of Control.

     For purposes hereof, a “Change of Control” shall mean the occurrence of either (a), (b), or
(c), below, or any combination of said occurrences, as described within the meaning of Treasury
Regulation Section 1.409A-3(i)(5):

15

 

     (a) Change in the Ownership of the Company. A change in the ownership of the Company occurs
on the date that any one person, or more than one person “acting as a group,” acquires ownership of
the stock of the Company, that, together with stock held by such person or group, constitutes more
than fifty percent (50%) of the total fair market value or total voting power of the stock of the
Company. However, if any person or more than one person acting as a group is considered to own
more than fifty percent (50%) of the total fair market value or total voting power of the stock of
the Company, the acquisition of additional stock by the same person or persons is not considered to
cause a change in the ownership of the Company. An increase in the percentage of stock owned by
any one person or persons acting as a group, as a result of a transaction in which the Company
acquires its stock in exchange for property will be treated as an acquisition of stock for purposes
of this Section 8.01(a). This Section 8.01(a) applies only when there is a transfer of stock of
the Company (or issuance of stock of the Company) and the stock of the Company remains outstanding
after the transaction.

     (b) Effective Change of Control. If the Company has not undergone a change in ownership under
(a), above, a change in the effective control of the Company will occur on the date that either:

               (i) Any one person, or more than one person “acting as a group,” acquires (or has acquired
during the twelve (12) month period ending on the date of the most recent acquisition by such
person or persons) ownership of stock of the Company possessing thirty-five percent (35%) or more
of the total voting power of the stock of the Company; or

          (ii) A majority of the members of the Company’s Board of Directors is replaced during any
twelve (12) month period by directors whose appointment or election is not endorsed by a majority
of the members of the Company’s Board of Directors prior to the date of the appointment or
election.

     (c) Change in Ownership of a Substantial Portion of the Company’s Assets. A change in the
ownership of a substantial portion of the Company’s assets occurs on the date that any person, or
more than one person “acting as a group,” acquires (or has acquired during the twelve (12) month
period ending on the date of the most recent acquisition by such person or persons) assets from the
Company that have a total gross fair market value equal to or more than forty percent (40%) of the
total gross fair market value of all of the assets of the Company immediately prior to such
acquisition or acquisitions. For this purpose, gross fair market value means the value of the
assets of the Company, or the value of the assets being disposed of, determined without regard to
any liabilities associated with such assets. There will be no Change of Control under this Section
8.01(c) when there is a transfer to an entity that is controlled by the shareholders of the Company
immediately after the transfer. A transfer of assets by the Company is not treated as a change in
ownership of such assets if the assets are transferred to:

          (1) A shareholder of the Company (immediately before the asset transfer) in exchange for or
with respect to its stock;

16

 

     (2) An entity, fifty percent (50%) or more of the total value or voting power of which is
owned, directly or indirectly, by the Company;

          (3) A person, or more than one person acting as a group, that owns, directly or indirectly,
fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the
Company; or

          (4) An entity, at least fifty percent (50%) of the total value or voting power of which is
owned, directly or indirectly, by a person described in Section 8.01(c)(3), above.

     (d) Persons Acting as a Group. For purposes of this Section 8.01, persons will not be
considered to be acting as a group solely because they purchase or own stock or purchase assets of
the Company at the same time, or as a result of the same public offering. However, persons will be
considered to be acting as a group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock or assets, or similar business transaction with the
Company. If a person, including an entity shareholder, owns stock in both the Company and another
corporation that enters into a merger, consolidation, purchase or acquisition of stock or assets,
or similar transaction, with the Company, such shareholder is considered to be acting as a group
with other shareholders in the Company only with respect to the ownership in the Company before the
transaction giving rise to the change and not with respect to the ownership interest in the other
corporation.

     Notwithstanding the above, the definition of Change of Control for purposes hereof shall
comply with the definition of such term in regulations issued by, or other pronouncements of, the
Internal Revenue Service with respect to Section 409A of the Code.

8.02 Payments Upon Change of Control.

     (a) In the event of a Change of Control, the value of each Actual Participant’s Retirement
Benefit accrued through the date of the Change of Control (and based on the Actual Participant’s
Years of Service through the date of the Change of Control) shall be paid to the Actual Participant
(or if the Actual Participant has died to the Beneficiary of the Actual Participant) in a single
lump-sum payment within sixty (60) days after the Change of Control or, if later, as soon as
reasonably practicable following the Change of Control; provided, however, that the
payment of the lump sum value of a Non-Grandfathered Benefit of a Specified Employee shall be paid
on the first day of the month coincident with or following six months after the date of the Change
of Control, if such payment delay is required in order to avoid a violation of Section 409A of the
Code. For purposes hereof, the amount of the lump-sum payment shall be determined using (i) the
actuarial assumptions set forth in the Administration Manual for the Plan as in effect immediately
prior to the Change of Control, or (ii) such actuarial assumptions as shall be specified by the
Continuing Directors (as defined in Article Fourteenth of the Company’s Certificate of
Incorporation) of the Company, provided that in no event shall the amount of the lump-sum
payment be less than the amount as determined pursuant to (i) above.

17

 

     (b) All determinations as to eligibility for and amount of benefits payable pursuant to (a)
above shall be made by the Continuing Directors (as defined in Article Fourteenth of the Company’s
Certificate of Incorporation) of the Company, and the decision of such persons shall be final and
binding on the Company and all claimants.

Article 9. Amendment or Termination

9.01 The Company’s Board of Directors or the Administrator may amend or terminate this Plan at any
time; provided, however, that no amendment or termination of the Plan shall
adversely affect the right of any Actual Participant to receive his or her accrued benefit under
the Plan, as determined as of the date of such amendment or termination.

18

 

APPENDIX A

Applicable Percentage

	 	 	 	 	 
	

Actual
Participant’s Age
at

 his/her
Termination Date:

	 	If the Actual
Participant retires
with less than 10

Years of Service or
the Actual Participant’s

 Termination Date
occurred before
January 1, 2003:
	 	If the Actual Participant retires
with 10 or More

 Years of Service
and the Actual Participant’s 

Termination Date occurred after
December 31, 2002:
	Age 55 through
actual Termination
Date

	 	100%, reduced by 5/12 of 1% for
each month that retirement age
precedes age 65 
	 	100%, reduced by
5/12 of 1 % for
each month that
retirement age
precedes age 62
	 
	Age 55 through age
45 

	 	50%, reduced by 1/4 of 1% for each
month that retirement precedes age
55 
	 	65%, reduced by 1/4
of 1% for each
month that
retirement precedes
age 55
	 
	Prior to Age 45

	 	20%, reduced by 1/12 of 1% for
each month that retirement precedes
age 45 
	 	35%, reduced by
1/12 of 1% for each
month that
retirement precedes
age 45
	 
	Prior to Age 35

	 	10% 
	 	25% 

 

 

Appendices A1 and A2 set forth below provide examples of Applicable Percentages at Integral Ages.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	APPENDIX A1	 	APPENDIX A2
	Less than 10 Years of Service	 	More than 10 Years of Service
	Age	 	Applicable	 	Age	 	Applicable
	at termination	 	Percentage	 	at termination	 	Percentage
	65

	 	 	100	%	 	 	65	 	 	 	100	%
	64

	 	 	95	%	 	 	64	 	 	 	100	%
	63

	 	 	90	%	 	 	63	 	 	 	100	%
	62

	 	 	85	%	 	 	62	 	 	 	100	%
	61

	 	 	80	%	 	 	61	 	 	 	95	%
	60

	 	 	75	%	 	 	60	 	 	 	90	%
	59

	 	 	70	%	 	 	59	 	 	 	85	%
	58

	 	 	65	%	 	 	58	 	 	 	80	%
	57

	 	 	60	%	 	 	57	 	 	 	75	%
	56

	 	 	55	%	 	 	56	 	 	 	70	%
	55

	 	 	50	%	 	 	55	 	 	 	65	%
	54

	 	 	47	%	 	 	54	 	 	 	62	%
	53

	 	 	44	%	 	 	53	 	 	 	59	%
	52

	 	 	41	%	 	 	52	 	 	 	56	%
	51

	 	 	38	%	 	 	51	 	 	 	53	%
	50

	 	 	35	%	 	 	50	 	 	 	50	%
	49

	 	 	32	%	 	 	49	 	 	 	47	%
	48

	 	 	29	%	 	 	48	 	 	 	44	%
	47

	 	 	26	%	 	 	47	 	 	 	41	%
	46

	 	 	23	%	 	 	46	 	 	 	38	%
	45

	 	 	20	%	 	 	45	 	 	 	35	%
	44

	 	 	19	%	 	 	44	 	 	 	34	%
	43

	 	 	18	%	 	 	43	 	 	 	33	%
	42

	 	 	17	%	 	 	42	 	 	 	32	%
	41

	 	 	16	%	 	 	41	 	 	 	31	%
	40

	 	 	15	%	 	 	40	 	 	 	30	%
	39

	 	 	14	%	 	 	39	 	 	 	29	%
	38

	 	 	13	%	 	 	38	 	 	 	28	%
	37

	 	 	12	%	 	 	37	 	 	 	27	%
	36

	 	 	11	%	 	 	36	 	 	 	26	%
	35

	 	 	10	%	 	 	35	 	 	 	25	%

2

 

APPENDIX B

     The following is the minimum benefit described in Section 4.01(h) with respect to James Sanko
and John Snodgrass, both of whom were participants in The Heil Co. Supplemental Executive
Retirement Plan (the “Heil SERP”), the minimum benefit amount of which shall be determined as the
excess of (A) over (B), if any:

(A) The benefit that would have been payable to such individual or, if such individual has died,
his Beneficiary, under the provisions of Salaried Program VI of the Dover Corporation Pension Plan,
computed without regard to the limitation on benefits imposed by Section 415 of the Code and the
limitation on considered compensation imposed by Section 401(a)(17) of the Code.

(B) The sum of (i) and (ii) where (i) is the benefit payable to such individual or, if such
individual has died, his Beneficiary, under the provisions of Salaried Program VI of the Dover
Corporation Pension Plan, and (ii) is the actuarial equivalent benefit of the Dover Corporation
Retirement Savings Plan account balance of the individual attributable to employer contributions.

Any such benefit shall be payable as a lump sum subject to the provisions of Section 4.02.

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