Document:

exv10w1

 

March 31, 2006

Ms. Karen Durant

Senior Vice President, Finance and Analysis

Pentair, Inc.

5500 Wayzata Blvd, Suite 800

Golden Valley, MN 55416

Dear Karen:

RE:
     Special Recognition and Retention Award

The Board of Directors of Pentair, Inc. wants to acknowledge the important role you play at the
Company. As Pentair continues to grow and evolve, we value your contribution and expertise.

To demonstrate our continued belief in you, Pentair hereby grants you, subject to your acceptance
and your signing of a non-competition agreement, a one-time special award of 24,808 shares of
restricted stock. The restricted stock is subject to the provisions of the Company’s Omnibus Stock
Incentive Plan and your Key Executive Employee Severance Agreement dated August 23, 2000. The
vesting schedule of the award will be longer than typically used for equity awards made pursuant to
the Plan: 100% of the awards will vest on the fourth anniversary of grant. As part of signing the
related non-competition agreement, you will be agreeing that this award will serve as adequate
consideration for entering the agreement even if you do not stay with Pentair long enough for the
shares to vest.

Nothing contained in this letter alters any of the terms of your employment, nor does it represent
a guarantee of employment. However, it should serve as an indicator of the faith we have in you as
a senior Pentair executive.

This letter agreement is governed by the laws of the State of Minnesota. It may not be amended or
modified except through a letter signed by the Company and you.

If this letter agreement is acceptable to you, please indicate your acceptance by countersigning it
in the place provided below. Upon your signing the non-competition agreement, it will become
binding agreement between the Company and you. Once receiving the countersigned original, Fred
Koury will supply you with any additional paperwork required to effect this grant.

Please call Fred Koury or me if you have any questions.

Regards,

Randall Hogan

Chairman & Chief Executive Officer

Pentair, Inc.

Accepted and agreed to on April 5, 2006

	 	 	 	 	 
	 	 
	By:  	 	 
	 	Karen Durant 	 
	 	Senior Vice President, Finance and Analysisexv10w2

 

	 	 	 	 	 

CONFIDENTIALITY AND

NON-COMPETITION AGREEMENT

THIS CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (“Agreement”) is made this first day of April,
2006, by and between Pentair, Inc. (“Employer” or “Pentair”), and Karen Durant (“Executive”).

RECITALS

WHEREAS, Executive is currently the Senior Vice President, Finance and Analysis of Pentair and, in
recognition of the value Executive adds to Pentair and as an inducement for Executive to enter into
this Agreement, Pentair wishes to offer Executive the independent consideration set forth in
section 1 of this Agreement.

WHEREAS, as a condition of receiving the independent consideration set forth in section 1 of this
Agreement, Executive wishes to voluntarily enter into this Agreement.

WHEREAS, Executive acknowledges that she will continue to be employed in a position of trust and
confidence and that she will continue to have access to and will become more familiar with the
products, methods, technology, services and procedures used by Employer in the future.

WHEREAS, Executive acknowledges that Employer has expended significant time and money on promotion,
advertising, and the development of goodwill and a sound business reputation. Employer has
developed a list of customers and spent time and resources to learn the customers’ needs for
Employer’s services and products. Employer also has entered into business relationships designed
to discover likely future customers. All of the foregoing are valuable, special and unique assets
of Employer’s business. Executive acknowledges that the Employer’s customer lists, including
future changes to the customer lists, are confidential information which should not be disclosed to
persons outside of Employer’s organization or used by Executive for her own benefit or the benefit
of other persons.

WHEREAS, Executive acknowledges that Employer has expended significant time and money on
technology, research, and development. Employer has developed products, processes, technologies
and services, which are valuable, special and unique assets of Employer’s business. Executive
acknowledges that the products, processes, technologies and services, including future changes
thereto, are confidential information which should not be disclosed to persons outside of
Employer’s organization or used by Executive for her own benefit or the benefit of other persons.

WHEREAS, Executive recognizes that the disclosure to or use by third parties of any of Employer’s
confidential or proprietary information, trade secrets, or Executive’s unauthorized use of such
information would seriously harm Employer’s business and cause monetary loss that would be
difficult, if not impossible, to measure.

 

 

WHEREFORE, the parties hereby agree as follows:

1. Shares of Restricted Stock Award. Pentair hereby grants Executive a one-time special
award of 24,808 shares of restricted stock, which are subject to the provision of Pentair’s Omnibus
Stock Incentive Plan. Notwithstanding the typical vesting schedule used for such awards under the
Omnibus Stock Incentive Plan, 100% of this award shall vest on the fourth anniversary of the grant.

Executive acknowledges that she was not entitled to receive this award prior to her execution of
this Agreement, and that execution of this Agreement is a condition of her right to receive the
award.

2. Confidential Information. “Confidential Information” means information belonging to
Employer of a special and unique nature and value, including, but not limited to, such matters as
Employer’s personnel and compensation information; accounts; trade secrets; procedures; manuals;
financial cost and sales data; supply sources and resources; contracts; price lists, accounting and
bookkeeping practices; office policies and practices; financial information; marketing plans;
business plans; prospect names and lists; existing and potential business opportunities;
confidential reports; customer lists and contracts; customers’ needs for Employer’s products and
services; litigation and other legal matters, as well as information specific to the Employer’s
products, such as source code, coding standards, programming techniques, processes and systems;
computer programs, algorithms, techniques, processes, designs, specifications, diagrams, flow
charts, ideas, systems, and methods of operation of such programs; and research and development
work.

Executive acknowledges that Employer has taken reasonable measures to preserve the secrecy of its
Confidential Information, including, but not limited to, requiring Executive to execute this
Agreement. Executive will not, during or after the term of employment, disclose Employer’s
Confidential Information which Executive may learn or acquire during her employment to any other
person or entity or use said Confidential Information for Executive’s own benefit or for the
benefit of another. If either Executive or Employer terminate the employment relationship,
Executive will immediately deliver to Employer all property and Confidential Information, including
work in progress, originals and copies of business forms, computer files, diskettes, source codes,
manuals, including training materials, catalogs, customer lists, financial information, computer
equipment, office equipment, and all other materials in Executive’s possession or control which
belong to Employer or contain information subject to this Agreement.

3. Competition Restrictions.

(a) Full-Time Commitment.

During the period of the employment relationship between Executive and Employer, Executive will
devote her full-time and energy to furthering Employer’s business and will not pursue any other
business activity without Employer’s written consent.

(b) Post-Employment Restrictions.

Executive acknowledges that during her employment with Pentair and her work for Pentair and its
subsidiaries, she has become intimately familiar with trade secrets, know-how, executive personnel,
business strategies, product development, proprietary information and Confidential Information
concerning the business of Pentair and other members of the Pentair controlled group

 

 

of companies (the “Group”). In consideration for the benefits paid to Executive under this
Agreement, Executive agrees that she shall not either directly or indirectly, for a period of two
(2) years following her last day of employment with Employer (the “Separation Date”), do any of the
following:

a. own, manage, control, be employed by, participate in, consult with or render services of
any kind for any concern which engages in a business which is competitive with any business
being conducted, or contemplated being conducted, by the Group as of the Separation Date;

b. become an employee or agent of any corporation or other entity, or any division or
subsidiary of such a corporation or entity, where more than five percent (5%) of such
organization’s business is in competition with any business being conducted, or
contemplated being conducted, by the Group as of the Separation Date;

c. participate in any plan or attempt to acquire the business or assets of the Group or
control of the voting stock of any member thereof, or in any manner interfere with the
control of Pentair, whether by friendly or unfriendly means unless by the discretion of the
Compensation Committee her participation is deemed acceptable;

d. solicit, offer to provide, provide, sell or offer to sell any service or product similar
to those which the Group sells to: (i) any customer with whom Executive (or other
employees or agents under Executive’s supervision) has had contact or for whom Executive
(or other employees or agents under Executive’s supervision) has performed services during
the term of Executive’s employment; or (ii) any prospective customer who has been solicited
by Employer or who has approached the Group and with whom Executive (or any other employee
or agent under the Executive’s supervision) has had contact or for whom Executive (or other
employees or agents under Executive’s supervision) has attempted to perform services during
the term of Executive’s employment; or

e. solicit any of the Group’s employees for the purpose of hiring them or inducing them to
leave their employment with the Group, nor will Executive own, manage, operate, join,
control, consult with, participate in the ownership, management, operation or control of,
be employed by, or be connected in any manner with any person or entity which engages in
the conduct proscribed by this paragraph during the term of Executive’s employment and for
a period of (2) years following the Separation Date.

4. Stipulated Reasonableness. Executive acknowledges that the nature of Executive’s
position, the period of time necessary to fill Executive’s position in the event Executive’s
employment is terminated, the period of time necessary to allow customers of Employer’s business to
become familiar with Executive’s replacement in the event Executive’s employment is terminated, and
the period of time necessary to obliterate the identification between Employer and Executive in the
minds of Employer’s customers commands that the two (2) year restrictive period be imposed
hereunder for the protection of Employer’s investment in its business. Executive further agrees
the restrictions contained in this Agreement shall apply no matter how her employment terminates
and regardless of whether the termination is voluntary or involuntary. Executive further agrees
that the restrictions contained in this Agreement shall survive the termination of her employment.

 

 

5. Remedies. Executive acknowledges and agrees that her breach of this Agreement would
cause irreparable harm to Employer and members of the Group and that such harm may not be
compensable entirely with monetary damages. If Executive violates this Agreement, Employer and any
injured member of the Group may, but shall not be required to, seek injunctive relief and/or any
other remedy allowed at law, in equity, or under this Agreement. Any injunctive relief sought
shall be in addition to and not in limitation of any monetary relief or other remedies or rights to
which Pentair or the Group is or may be entitled at law, in equity, or under this Agreement. In
connection with any suit at law or in equity under this Agreement, Employer and any member of the
Group shall be entitled to an accounting, and to the repayment of all profits, compensation,
commissions, fees, or other remuneration which Executive or any other entity or person has either
directly or indirectly realized on its behalf or on behalf of another and/or may realize, as a
result of, growing out of, or in connection with the violation which is the subject of the suit.
In addition to the foregoing, Employer and any member of the Group shall be entitled to collect
from Executive any reasonable attorney’s fees and costs incurred in bringing any action against
Executive or otherwise to enforce the terms of this Agreement, as well as any attorney’s fees and
costs for the collection of any judgments in Employer’s favor arising out of this Agreement.

6. Judicial Modification. If any one or more of the terms of this Agreement are deemed to
be invalid or unenforceable by a court of law, the validity, enforceability, and legality of the
remaining provisions will not, in any way, be affected or impaired thereby; and, notwithstanding
the foregoing, all provisions of this Agreement shall be enforced to the extent that is reasonable
as determined by a Minnesota state or federal court.

7. Invention Assignment. During Executive’s employment with Employer, Executive will
promptly disclose to Employer, in writing, any ideas, inventions or discoveries (collectively,
“Inventions”) related to Pentair’s business. Executive agrees that these Inventions shall belong
to Pentair; Executive hereby assigns such Inventions to Pentair subject to the limitations set
forth below; I warrant and represent that I will execute any documents necessary to effectuate the
assignment of all of my right, title and interest in such Inventions to Pentair; and Executive will
cooperate in Pentair’s efforts to protect its rights to the Inventions. Executive understands that
her agreement in this paragraph does not apply to any invention for which none of Pentair’s
equipment, supplies, facilities or trade secret information were used and which was developed
entirely on my own time, and (1) which does not relate (a) directly to Pentair’s business or (b) to
Pentair’s actual or demonstrably anticipated research or development, or (2) which does not result
from any work that Executive performed for Pentair.

Executive further agrees that during and after the term of her employment, without charge to the
Employer but at its expense, to execute, acknowledge and deliver any and all papers necessary for
the Employer to obtain patents for its own benefit on the Inventions in any and all countries and
that said patents, applications for patents and Inventions shall remain the property of the
Employer whether patented or not.

8. Nonwaiver. Employer’s decision to refrain from enforcing a breach of any part of this
Agreement (or Employer’s settlement of any claims for breach) will not prevent Employer from
enforcing the Agreement as to any other breach of this Agreement that Employer discovers and shall
not operate as a waiver against any future enforcement of any part of this Agreement, any other
agreement with Executive or any other agreement with any other employee of Employer.

 

 

9. Compensation Committee Discretion. The Compensation Committee of the Board of Directors
of Pentair shall have the ability to waive or override certain clauses of this agreement, provided,
however, that such waiver shall not be to reduce benefits to Executive under the Agreement.

10. Assignment. This Agreement may be assigned by Employer.

11. Choice of Law/Forum. This Agreement shall be construed and determined according to the
laws of the State of Minnesota, and any disputes arising out of this Agreement shall be determined
in a Minnesota state or federal court of appropriate jurisdiction.

12. At-Will. Nothing in this Agreement is intended to provide nor shall this Agreement
provide Executive with any contractual rights to employment for any period of time. Executive
acknowledges that her employment relationship with Employer is one of at-will employment.

13. Merger/Capacity. This Agreement incorporates the entire understanding between the
parties as to its subject matter. Other than stated herein, Executive has been offered no oral or
written promises, inducements, or representations, and Executive executes this Agreement without
reliance on any oral or written promises, inducements, or representations other than those set
forth in this Agreement. This Agreement may not be canceled, modified or otherwise changed except
by another written agreement signed by Executive and Employer. Executive and Employer represent
that each party is of legal age, under no legal disability, has full legal authority to enter into
this Agreement, and has had a reasonable and adequate opportunity to consult with independent
counsel regarding the effect of this Agreement, the sufficiency of the independent consideration
provided Executive hereunder, and the reasonableness of the restrictions set forth herein. This
agreement is subject to the provisions of the Key Executive Employee Severance Agreement dated
August 23, 2000 between Executive and Employer.

	 	 	 	 	 	 	 
	PENTAIR, INC	 	EXECUTIVE	 
	By	 

 

	 

	 

 

	Its
	
 

 

	 	Date:	 

 

	Date:

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