Document:

exv10w3

 

Exhibit 10.3

 

AMETEK, INC.

DIRECTORS’ DEATH BENEFIT PLAN

 

Effective January 1, 2005

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1. PURPOSE AND EFFECTIVE DATE
	 	 	1	 
	 
	 	 	 	 
	1.01 Purpose
	 	 	1	 
	1.02 Effective Date
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2. DEFINITIONS AND CONSTRUCTION
	 	 	2	 
	 
	 	 	 	 
	2.01 Definitions
	 	 	2	 
	2.02 Construction
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3. ELIGIBILITY AND PARTICIPATION
	 	 	6	 
	 
	 	 	 	 
	3.01 Generally
	 	 	6	 
	3.02 Participation Agreement Required
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 4. RETIREMENT BENEFIT
	 	 	7	 
	 
	 	 	 	 
	4.01 Nature of Benefit
	 	 	7	 
	4.02 Amount of Benefit
	 	 	7	 
	4.03 Vesting of Retirement Benefit
	 	 	7	 
	4.04 Forfeiture
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 5. DEATH BENEFIT
	 	 	8	 
	 
	 	 	 	 
	5.01 Nature of Benefit
	 	 	8	 
	5.02 Amount of Benefit
	 	 	8	 
	5.03 Vesting of Death Benefit
	 	 	8	 
	5.04 Forfeiture
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 6. PAYMENT OF PLAN BENEFITS
	 	 	9	 
	 
	 	 	 	 
	6.01 Timing of Benefit Payments
	 	 	9	 
	6.02 Form of Payment
	 	 	9	 
	6.03 Administrative Acceleration or Delay of Payment
	 	 	11	 
	6.04 Withholding
	 	 	11	 
	6.05 Payment to Guardian
	 	 	11	 
	6.06 Effect of Payment
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 7. BENEFICIARY DESIGNATION
	 	 	12	 
	 
	 	 	 	 
	7.01 Beneficiary Designation
	 	 	12	 
	7.02 Changing Beneficiary
	 	 	12	 
	7.03 No Beneficiary Designation
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 8. AMENDMENT AND TERMINATION OF PLAN
	 	 	13	 
	 
	 	 	 	 
	8.01 Amendment
	 	 	13	 
	8.02 Company’s Right to Terminate
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 9. MISCELLANEOUS
	 	 	14	 
	 
	 	 	 	 
	9.01 Company Obligation
	 	 	14	 
	9.02 Trust Fund
	 	 	14	 

			
	 	 	 
	AMETEK, Inc. Directors’ Death Benefit Plan
	 	Table of Contents

 

 

	 	 	 	 	 
	9.03 Nonassignability
	 	 	14	 
	9.04 Not a Contract of Employment
	 	 	14	 
	9.05 Governing Law
	 	 	15	 
	9.06 Severability
	 	 	15	 
	9.07 Headings
	 	 	15	 
	9.08 Notice
	 	 	15	 
	9.09 Successors
	 	 	15	 

			
	 	 	 
	AMETEK, Inc. Directors’ Death Benefit Plan
	 	Table of Contents

 

 

ARTICLE 1. PURPOSE AND EFFECTIVE DATE

	1.01	 	Purpose.

	 	 	 	This AMETEK, Inc. Directors’ Death Benefit Plan (the “Plan”) is intended to provide an
additional benefit to Outside Directors of AMETEK, Inc., and its subsidiaries (the
“Company”), either in the form of a Retirement Benefit (as set forth in Article 4) or in the
form of a Death Benefit (as set forth in Article 5), but not both. If a Participant retires
from the Company after attaining normal retirement eligibility, he will receive a Retirement
Benefit determined in accordance with Article 4 of the Plan. In contrast, if a Participant
dies while actively serving on the Board of the Company and is otherwise eligible to
participate in the Plan, his Beneficiary(ies) will receive a Death Benefit determined in
accordance with Article 5 of the Plan.
	 
	 	 	 	The Retirement Benefit and the Death Benefit are mutually exclusive: no Death Benefit will
be paid on behalf of a Participant who receives a Retirement Benefit, and no Retirement
Benefit will be paid on behalf of a Participant if a Death Benefit is paid on that
Participant’s behalf. A Participant who separates from service (not on account of his death
or disability) before attaining early or normal retirement eligibility will not receive any
benefit under the Plan and no Plan benefit will be paid on his behalf.

	1.02	 	Effective Date.

	 	(a)	 	The Plan, as hereby amended and restated, is effective January 1, 2005.
	 
	 	(b)	 	This Plan restatement is effective with respect to the entire benefit of a
Participant who Separates from Service after December 31, 2004.
	 
	 	(c)	 	If a Participant Separated from Service before January 1, 2005, and had not
received his entire benefit as of that date, the Participant’s Retirement Benefit and
Death Benefit shall be subject to the terms of this restatement. These changes are
permitted under the terms of the 1987 restatement of the Plan because they are being
made to all participation agreements and do not reduce the value of a Participant’s
Retirement Benefit or Death Benefit.
	 
	 	(d)	 	This amendment and restatement of the Plan is not intended to constitute a
“material modification” for purposes of section 409A of the Code with respect to the
portion of a Participant’s benefit (and earnings on such benefit) that was earned and
vested (within the meaning of section 409A of the Code) before January 1, 2005.
However, the Company shall not be liable for any adverse tax consequence suffered by a
Participant or Beneficiary if a Participant’s benefit becomes subject to section 409A
of the Code and is determined not to comply with the requirements of section 409A of
the Code.

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ARTICLE 2. DEFINITIONS AND CONSTRUCTION

	2.01	 	Definitions.

	 	As used in the Plan, the following words and phrases shall have the meaning set forth below:

	 	(a)	 	Annual Fee. “Annual Fee” means the fees and other remuneration
expressed as an annual rate payable to a Participant in consideration for attending
either regularly scheduled or special meetings of the Board and any committees thereof
or serving as the chair of any committees thereof, but shall not include any amounts
received as reimbursement of expenses incurred by a Participant or any amounts received
from the Company for rendering services to the Company in a capacity other than as an
Outside Director.
	 
	 	(b)	 	Beneficiary. “Beneficiary” means the person, persons or entity as
designated by the Participant, entitled under Article 7 to receive any Plan benefits
payable after the Participant’s death.
	 
	 	(c)	 	Board. “Board” means the Board of Directors of AMETEK, Inc.
	 
	 	(d)	 	Cause. “Cause” means (1) misappropriation of funds, (2) habitual
insobriety or substance abuse, (3) conviction of a felony or crime involving moral
turpitude, or (4) gross negligence in the performance of duties that has had a material
adverse effect on the business, operations, assets, properties, or financial condition
of the Company.
	 
	 	(e)	 	Change in Control. A “Change in Control” shall occur if:

	 	(1)	 	Any one person or more than one person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
ownership of stock of the Company that, together with the stock held by such
person or group of persons, constitutes more than 50 percent of the total fair
market value or total voting power of the stock of the Company. However, if
such person or group of persons is considered to own more than 50 percent of
the total fair market value or total voting power of the stock of the Company
before this transfer of the Company’s stock, the acquisition of additional
stock by the same person or group of persons shall not be considered to cause a
Change in Control of the Company; or
	 
	 	(2)	 	Any one person or more than one person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
(or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or group of persons) ownership of stock of
the Company possessing 30 percent or more of the total voting power of the
stock of the Company. However, if such person or group of persons is
considered to own 30 percent or more of the total voting power of the stock of
the Company before this acquisition, the acquisition of additional control or
stock of the Company by the same person or group of persons shall not cause a
Change in Control of the Company; or

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	 	(3)	 	A majority of members of the Company’s Board is replaced during
any 12-month period by directors whose appointment or election is not endorsed
by a majority of the members of the Company’s Board before the date of the
appointment or election; or
	 
	 	(4)	 	Any one person or more than one person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
(or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or group of persons) assets from the Company
that have a total gross fair market value equal to substantially all but in no
event less than 40 percent of the total fair market value of all 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. A transfer of assets by the Company
will not result in a Change in Control under this Section 2.01(e)(4), if the
assets are transferred to:

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

	 	(B)	 	An entity, 50 percent or more of the total
value or voting power of which is owned, directly or indirectly, by the
Company immediately after the transfer of assets;
	 
	 	(C)	 	A person or more than one person acting as a
group (as defined in section 1.409A-3(i)(5)(v)(B) of the Treasury
Regulations) that owns, directly or indirectly, 50 percent or more of
the total value or voting power of all the outstanding stock of the
Company; or
	 
	 	(D)	 	An entity, at least 50 percent of the total
value or voting power of which is owned directly or indirectly, by a
person described in Section 2.01(e)(4)(C), above.

	 	 	 	For purposes of this Section 2.01(e), no acquisition, either directly or indirectly,
by the Participant, his affiliates and associates, the Company, any subsidiary of
the Company, any employee benefit plan of the Company or of any subsidiary of the
Company, or any person or entity organized, appointed or established by the Company
for or pursuant to the terms of any such employee benefit plan shall constitute a
Change in Control.

	 	(f)	 	Code. “Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(g)	 	Company. “Company” means AMETEK, Inc., a Delaware corporation.
	 
	 	(h)	 	Death Benefit. “Death Benefit” means the benefit paid on behalf of a
Participant in accordance with Article 5.
	 
	 	(i)	 	Early Retirement. “Early Retirement” means Separation from Service by
the Participant before attaining age 70 and after completing at least five (5) Years of
Service.

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	 	(j)	 	Effective Date. “Effective Date” means January 1, 2005.
	 
	 	(k)	 	Eligible Director. “Eligible Director” means an Outside Director
excluding any Outside Director who (1) is, or has been, a participant in the Employees’
Retirement Plan of AMETEK, Inc. or (2) became an Outside Director before July 22, 2004.
	 
	 	(l)	 	ERISA. “ERISA” means the Employee Retirement Income Security Act of
1974, as amended.
	 
	 	(m)	 	Normal Retirement. “Normal Retirement” means Separation from Service
by the Participant on or after attaining age seventy (70) and after completing five (5)
Years of Service.
	 
	 	(n)	 	Optional Form. “Optional Form” means one of the following forms of
payment:

	 	(1)	 	Installments. This Optional Form of benefit is payable monthly
to the Participant for the number of periods designated by the Participant, no
payments shall be made over a period longer than fifteen years. To the extent
permitted in section 1.409A-3(c) of the Treasury Regulations, if a Participant
elects this Optional Form, the Participant shall receive installments over the
number of years that he elects, provided that if he elects to receive
installments for a period of more than ten years and the elected number of
installments will result in payments being made beyond the date on which the
Participant attains age 85, the Participant shall receive monthly installments
for a period of ten years or such shorter time as is required by law.

	 	(2)	 	Life Annuity. This Optional Form of benefit is payable monthly
to the Participant for life.

	 	(3)	 	Life Annuity with 60 or 120 Payments Guaranteed. This Optional
Form of benefit is payable monthly to the Participant for life with the first
sixty (60) or one hundred twenty (120) monthly payment guaranteed, as elected
by the Participant. A Participant may not elect a period of guaranteed
payments that exceeds the Participant’s remaining life expectancy at the time
of the election.

	 	(o)	 	Outside Director. “Outside Director” means any director who is a
member of the Board and is not an employee of the Company.

	 	(p)	 	Participant. “Participant” means any Eligible Director who is eligible
and has become a participant pursuant to Article 3. Such director shall remain a
Participant in this Plan until such time as all benefits payable under this Plan have
been paid in accordance with the provisions hereof.

	 	(q)	 	Participation Agreement. “Participation Agreement” shall mean any of
the agreements entered into by the Company and any Participant in accordance with
Section 3.02.

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	 	(r)	 	Plan. “Plan” means this AMETEK, Inc. Directors’ Death Benefit Plan, as
it may be amended from time to time.
	 
	 	(s)	 	Plan Year. “Plan Year” means the calendar year.
	 
	 	(t)	 	Retirement Benefit. “Retirement Benefit” means the benefit payable to
a Participant at Normal Retirement or Deferred Retirement under Article 4.
	 
	 	(u)	 	Separates from Service. “Separates from Service” or “Separation from
Service” means separation from service within the meaning of section 409A of the Code.
	 
	 	(v)	 	Year of Service. “Year of Service” means a consecutive twelve-month
period following the earlier of the date of the Outside Director’s election to the
Board or his appointment or election as an officer of the Company, and each anniversary
thereof, during which the Participant serves or has served as either an Outside
Director or as an officer of the Company who is not covered by, or is not accruing
benefits under, the Employees’ Retirement Plan of AMETEK, Inc. Notwithstanding the
foregoing, a Participant shall not be credited with more than one Year of Service for
any one calendar year, even if he serves as both an Outside Director and as an officer
of the Company during such year.

	2.02	 	Construction.

	 	 	 	For purposes of the Plan, unless the contrary is clearly indicated by the context,

	 	(a)	 	the use of the masculine gender shall also include within its meaning the
feminine and vice versa,
	 
	 	(b)	 	the use of the singular shall also include within its meaning the plural and
vice versa, and
	 
	 	(c)	 	the word “include” shall mean to include without limitation.

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ARTICLE 3. ELIGIBILITY AND PARTICIPATION

	3.01	 	Generally.

	 	 	 	Eligibility and participation in the Plan are limited to individuals who became Eligible
Directors before July 23, 2004. If an Eligible Director is a Participant on May 1, 2007 and
his benefit is subject to the terms of this restatement in accordance with Section 1.02(b),
the Eligible Director will remain a Participant if he executes a new Participation
Agreement; if the Eligible Executive fails to execute a new Participation Agreement, he
shall cease being a Participant as of May 1, 2007.

	3.02	 	Participation Agreement Required.

	 	 	 	No Eligible Director under Section 3.01 will be eligible to be a Participant in the Plan
unless he and the Company execute a Participation Agreement evidencing his participation in
the Plan. The executed Participation Agreement will constitute an agreement between the
Company and the Eligible Executive that binds both of them to the terms of the Plan and will
bind their heirs, executors, administrators, successors, and assigns, both present and
future. The executed Participation Agreement will also constitute the Eligible Executive’s
written agreement to waive all rights he may have under any earlier restatement of the Plan
or agreement under the Plan.

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ARTICLE 4. RETIREMENT BENEFIT

	4.01	 	Nature of Benefit.

	 	 	 	A Participant’s Retirement Benefit shall be a series of installment or annuity payments that
are payable if a Participant Separates from Service (a) pursuant to a Normal Retirement or
(b) pursuant to an Early Retirement and then attains age 70.
	 
	 	 	 	The Retirement Benefit under the Plan is mutually exclusive with the Death Benefit under the
Plan (which is described in Article 5). No Retirement Benefit shall be paid to or on behalf
of any Participant if a Death Benefit has been or will be paid on behalf of such
Participant.

	4.02	 	Amount of Benefit.

	 	 	 	The Retirement Benefit shall be an annual amount (or the actuarial equivalent of an annual
amount) equal to the highest Annual Fee that the Participant received while serving as an
Outside Director.

	4.03	 	Vesting of Retirement Benefit.

	 	 	 	Each Participant shall become 100% vested in his Retirement Benefit upon (a) Normal
Retirement or (b) Early Retirement.

	4.04	 	Forfeiture.

	 	(a)	 	Any portion of a Participant’s Retirement Benefit that does not vest in
accordance with Section 4.03 shall be forfeited on the date the Participant Separates
from Service or dies, whichever occurs earlier.
	 
	 	(b)	 	The Participant’s entire Retirement Benefit shall be forfeited if a Death
Benefit becomes payable on the Participant’s behalf in accordance with Article 5.
	 
	 	(c)	 	The Committee may cause a forfeiture with respect to all or any portion of the
Participant’s Retirement Benefit (whether or not vested) if the Committee determines
that the Participant’s service has been terminated for Cause.

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ARTICLE 5. DEATH BENEFIT

	5.01	 	Nature of Benefit.

	 	 	 	A Participant’s Death Benefit under the Plan shall be a series of equal monthly installment
payments that are payable if the Participant dies (a) while serving on the Board or (b)
before he attains age 70 if he Separates from Service pursuant to an Early Retirement.
	 
	 	 	 	The Death Benefit under the Plan is mutually exclusive with the Retirement Benefit under the
Plan (as described in Article 4). No Death Benefit shall be paid on behalf of any
Participant if a Retirement Benefit has been or will be paid to or on behalf of such
Participant.

	5.02	 	Amount of Benefit.

	 	 	 	The Death Benefit shall be an annual amount equal to the highest Annual Fee that the
Participant received while serving as an Outside Director.

	5.03	 	Vesting of Death Benefit.

	 	 	 	Each Participant shall become 100% vested in his Death Benefit upon his death (a) while
actively employed by the Company or (b) before attaining age 70 if the Participant Separates
from Service pursuant to an Early Retirement.

	5.04	 	Forfeiture.

	 	(a)	 	Any portion of a Participant’s Death Benefit that does not vest in accordance
with Section 5.03 shall be forfeited on the date the Participant Separates from
Service, except that a Participant who Separates from Service pursuant to an Early
Retirement shall not forfeit his Death Benefit before attaining age 70.

	 	(b)	 	The Participant’s entire Death Benefit shall be forfeited if a Retirement
Benefit becomes payable on the Participant’s behalf in accordance with Article 4.

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ARTICLE 6. PAYMENT OF PLAN BENEFITS

	6.01	 	Timing of Benefit Payments.

	 	(a)	 	Retirement Benefit.

	 	(1)	 	Early Retirement. A Participant who Separates from Service
pursuant to an Early Retirement shall receive or shall begin receiving the
Retirement Benefit on the first day of the month coincident with or next
following the date that the Participant attains age 70.
	 
	 	(2)	 	Normal Retirement. A Participant who Separates from Service
pursuant to a Normal Retirement shall receive or shall begin receiving the
Retirement Benefit on the first day of the month coincident with or next
following the date of the Participant’s Separation from Service.

	 	(b)	 	Death Benefit.

	 	 	 	The Death Benefit payable on behalf of a Participant shall begin to be paid on the
first day of the month coincident with or next following the date on which the
Participant dies.

	6.02	 	Form of Payment.

	 	(a)	 	Retirement Benefit.

	 	(1)	 	General. The Retirement Benefit payable to any Participant
shall be paid in equal monthly installments for ten years unless the
Participant makes a valid election, in accordance with subsections (2), (3), or
(4), below, to receive his Retirement Benefit in an Optional Form. The most
recently filed election that meets the requirements of subsections (2), (3),
or (4) below, shall be effective.

	 	(2)	 	Initial Election Regarding Form of Payment.

	 	(A)	 	Normal Rule. A Participant may elect
an Optional Form by making such election before the expiration of
thirty (30) days following the date that he first becomes eligible to
participate in the Plan, provided that he has not, within the preceding
twenty-four (24) months, been eligible to participate in any other
non-account-based deferred compensation arrangement of the Company
(within the meaning of section 409A of the Code).

	 	(B)	 	One-Time Election Before January 1,
2008. A Participant may make a special election of any Optional
Form (or may revoke any prior election) before January 1, 2008;
provided, however, that the Participant may not make a new election
under this paragraph after December 31, 2006, to the extent that (1)
any portion of his Retirement Benefit would otherwise be paid during
2007 or (2) the election would accelerate payment of a portion of his
Retirement Benefit into 2007; and provided, further, that the election
satisfies

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	 	 	 	Section 6.02(a)(4)(D), below. The Participant must elect the same time and
form of distribution for his entire Retirement Benefit.

	 	(3)	 	Election Between Life Annuities. A Participant may file an
election to receive an Optional Form that is an annuity at any time before the
first annuity payment is made, provided that (A) the Participant’s existing
election is an annuity and (B) both the annuity payable under the existing
election and the annuity payable under the new election are considered
actuarially equivalent “life annuities” for purposes of section 409A of the
Code.
	 
	 	(4)	 	Modification of Election. If a Participant wishes to change
the form of payment for his Retirement Benefit, and the new election does not
satisfy the requirements of Section 6.02(a)(2)(B) (concerning elections before
January 1, 2008) or Section 6.02(a)(3) (concerning elections between life
annuities), the Participant’s new payment election must satisfy the
requirements of this Section 6.02(a)(4). A Participant may change his election
under this Section 6.02(a)(4) only if the new election —

	 	(A)	 	is not effective until at least twelve (12)
months after the date on which the election is made;
	 
	 	(B)	 	defers the first payment with respect to which
such election is made for a period of not less than five (5) years from
the date such payment would otherwise have been made;
	 
	 	(C)	 	is not made less than twelve (12) months before
the Retirement Benefit would otherwise commence or be paid under
Section 6.01; and
	 
	 	(D)	 	does not result in the Participant’s Retirement
Benefit commencing after the later of (A) the Participant’s Separation
from Service or (B) the Participant’s attaining age 75.

	 	(5)	 	Optional Forms are Actuarially Equivalent. In all instances,
the Retirement Benefit payable under this Section 6.02 shall be the actuarial
equivalent of the Retirement Benefit determined under Section 4.02. Actuarial
equivalence shall be determined using reasonable actuarial factors determined
by the Committee to be appropriate for this purpose.
	 
	 	(6)	 	Continued Payment of Retirement Benefit After Participant’s
Death. If the Participant dies after his retirement under this Plan and before
his Retirement Benefit is paid in full (and the Participant has not chosen to
have his Retirement Benefit paid as an annuity without guaranteed payments),
the Company shall pay to the Participant’s Beneficiaries any remaining amounts
at the same time and in the same manner as if the Participant had survived.

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	 	(b)	 	Death Benefit.
	 
	 	 	 	The Death Benefit payable on behalf of any Participant shall be paid in equal
monthly installments for ten years.

	6.03	 	Administrative Acceleration or Delay of Payment.
	 
	 	 	A payment is treated as being made on the date when it is due under the Plan if the payment
is made (a) no earlier than thirty (30) days before the due date specified by the Plan or
(b) on a date later than the due date specified by the Plan that is either (1) in the same
Plan Year (for a payment whose specified due date is on or before September 30) or (2) by
the fifteenth (15th) day of the third calendar month following the date specified by the
Plan (for a payment whose specified due date is on or after October 1).
	 
	6.04	 	Withholding.
	 
	 	 	The Company shall withhold from any payment made pursuant to this Plan any taxes the Company
reasonably believes are required to be withheld from such payments under local, state, or
federal law.
	 
	6.05	 	Payment to Guardian.
	 
	 	 	If a Plan benefit is payable to a minor or a person declared incompetent or to a person
incapable of handling the disposition of the property, the Committee may direct payment to
the guardian, legal representative or person having the care and custody of such minor,
incompetent or person. The Committee may require proof of incompetency, minority,
incapacity or guardianship as it may deem appropriate prior to distribution. Such
distribution shall completely discharge the Committee and Company from all liability with
respect to such benefit.
	 
	6.06	 	Effect of Payment.
	 
	 	 	The full payment of the applicable benefit under this Article 6 shall completely discharge
all obligations on the part of the Company to the Participant (and the Participant’s
Beneficiary) with respect to the operation of this Plan, and the Participant’s (and
Participant’s Beneficiary’s) rights under this Plan shall terminate.

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ARTICLE 7. BENEFICIARY DESIGNATION

	7.01	 	Beneficiary Designation.
	 
	 	 	Each Participant shall have the right, at any time, to designate one (1) or more persons or
entity as Beneficiary (both primary as well as secondary) to whom benefits under this Plan
shall be paid in the event of the Participant’s death. Each Beneficiary designation shall
be in a written form prescribed by the Committee and shall be effective only if filed with
the Committee during the Participant’s lifetime.
	 
	7.02	 	Changing Beneficiary.
	 
	 	 	Any Beneficiary designation may be changed without the consent of the previously named
Beneficiary by the filing of a new Beneficiary designation with the Committee during the
Participant’s lifetime.
	 
	7.03	 	No Beneficiary Designation.
	 
	 	 	If any Participant fails to designate a Beneficiary in the manner provided above, if the
designation is void, or if the Beneficiary designated by a deceased Participant dies before
the Participant or before complete distribution of the Participant’s benefits, the
Participant’s Beneficiary shall be the person in the first of the following classes in which
there is a survivor:

	 	(a)	 	the Participant’s surviving spouse;
	 
	 	(b)	 	the Participant’s children in equal shares, except that if any of the children
predeceases the Participant but leaves surviving issue, then such issue shall take by
right of representation the share the deceased child would have taken if living; or
	 
	 	(c)	 	the Participant’s estate.

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ARTICLE 8. AMENDMENT AND TERMINATION OF PLAN

	8.01	 	Amendment.
	 
	 	 	The Board may at any time amend the Plan by written instrument, notice of which shall be
given to all Participants and to any Beneficiary receiving installment payments, except that
no amendment shall reduce the amount of any Retirement Benefit or Death Benefit that is
vested in accordance with Sections 4.03 or 5.03, respectively, as of the date such notice of
the amendment is given.
	 
	8.02	 	Company’s Right to Terminate.
	 
	 	 	The Board may at any time partially or completely terminate the Plan by written instrument.
In the event of complete termination, the Plan shall cease to operate and the Company shall
distribute the Retirement Benefit or Death Benefit to the appropriate Participant or
Beneficiary in accordance with Article 6.

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ARTICLE 9. MISCELLANEOUS

	9.01	 	Company Obligation.
	 
	 	 	The Company shall not be required to fund any obligations under the Plan. Except as
provided in Section 9.02, any assets that may be accumulated by the Company to meet its
obligations under the Plan shall for all purposes be part of the general assets of the
Company. To the extent that any Participant or Beneficiary acquires a right to receive
payments under the Plan for which the Company is liable, such rights shall be no greater
than the rights of any unsecured general creditor of the Company.
	 
	9.02	 	Trust Fund.
	 
	 	 	The Company shall be responsible for the payment of all benefits provided under the Plan.
Before a Change in Control, at its discretion, the Company may establish one (1) or more
trusts, with such trustees as the Committee may approve, for the purpose of assisting in the
payment of such benefits. Following a Change in Control, the Company shall establish one
(1) or more trusts, with such trustees as the Committee may approve, for the purpose of
assisting in the payment of such benefits, and shall fund such trust with the full amount
necessary to pay all benefits that are reasonably expected to be payable under the Plan.
Although such a trust shall be irrevocable, its assets shall be held for payment of all of
the Company’s general creditors in the event of insolvency and shall not be located or
transferred outside the United States. To the extent any benefits provided under the Plan
are paid from any such trust, the Company shall have no further obligation to pay them. If
not paid from the trust, such benefits shall remain the obligation of Company. No assets of
the trust or the Company shall become restricted to provide benefits under the Plan in
connection with a change in the Company’s financial health.
	 
	9.03	 	Nonassignability.
	 
	 	 	Neither a Participant nor any other person shall have any right to commute, sell, assign,
transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or
convey in advance of actual receipt the amounts, if any, payable hereunder, or any part
thereof, which are, and all rights to which are, expressly declared to be unassignable and
non-transferable. No part of the amounts payable shall, prior to actual payment, be subject
to seizure or sequestration for the payment of any debts, judgments, alimony or separate
maintenance owed by a Participant or any other person, nor be transferable by operation of
law in the event of a Participant’s or any other person’s bankruptcy or insolvency, except
that the Committee may recognize a domestic relations order in accordance with procedures
that it may establish for this purpose.
	 
	9.04	 	Not a Contract of Employment.
	 
	 	 	This Plan shall not constitute a contract of employment between the Company and the
Participant. Nothing in this Plan shall give a Participant the right to be retained in the
service of the Company or to interfere with the right of the Company to discipline or
discharge a Participant at any time.

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	9.05	 	Governing Law.
	 
	 	 	The Plan shall be construed and enforced in accordance with applicable federal law and, to
the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania
(without regard to the legislative or judicial conflict of laws rules of any state or other
jurisdiction).
	 
	9.06	 	Severability.
	 
	 	 	If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in
whole or in part, the unlawfulness, invalidity, or unenforceability shall not affect any
other provision of the Plan or part thereof, each of which shall remain in full force and
effect. In addition, if any provision of the Plan shall be found to violate section 409A of
the Code or otherwise result in benefits under the Plan being subject to income tax prior to
distribution, such provision shall be void and unenforceable, and the Plan shall be
administered without regard to such provision.
	 
	9.07	 	Headings.
	 
	 	 	Headings are inserted in this Plan for convenience of reference only and are to be ignored
in the construction of the provisions of the Plan.
	 
	9.08	 	Notice.
	 
	 	 	Any notice required or permitted under the Plan shall be sufficient if in writing and hand
delivered or sent by registered mail, certified mail, or reputable overnight delivery
service. Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail or overnight delivery, as of the date shown on the postmark on the receipt for
registration or certification or on the records of the overnight delivery company. Mailed
notice to the Committee shall be directed to the Company’s address. Mailed notice to a
Participant or Beneficiary shall be directed to the individual’s last known address in the
Company’s records.
	 
	9.09	 	Successors.
	 
	 	 	The provisions of this Plan shall bind the Company and its successors and assigns. The term
successors as used herein shall include any corporate or other business entity which shall,
whether by merger, consolidation, purchase or otherwise acquire all or substantially all of
the business and assets of the Company, and successors of any such corporation or other
business entity.

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          IN WITNESS WHEREOF, and as evidence of the adoption of this Plan by the Company, AMETEK, Inc.
has executed the same this 24th day of October, 2007.

	 	 	 	 	 	 	 
	 	 	AMETEK, INC.
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Henry J. Policare	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Henry J. Policare	 	 
	 
	 	 	 	 	 	 
	 

	 	DATE:	 	11/1/07	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ATTEST
	 
	 	 	 	 	 	 
	 

	 	BY:	 	/s/ Kathryn E. Sena	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Corporate Secretary	 	 

AMETEK, Inc. Directors’ Death Benefit Plan

Page 16exv10w4

 

Exhibit 10.4

 

 

AMETEK, INC.

RETIREMENT PLAN FOR DIRECTORS

 

Amended and Restated, Effective January 1, 2005

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1. PURPOSE AND EFFECTIVE DATE	 	 	1	 
	 
	 	 	 	 	 	 
	1.01
	 	Purpose	 	 	1	 
	1.02
	 	Effective Date	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 2. DEFINITIONS AND CONSTRUCTION	 	 	2	 
	 
	 	 	 	 	 	 
	2.01
	 	Definitions	 	 	2	 
	2.02
	 	Construction	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE 3. ELIGIBILITY AND PARTICIPATION	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE 4. RETIREMENT BENEFIT	 	 	6	 
	 
	 	 	 	 	 	 
	4.01
	 	Amount	 	 	6	 
	4.02
	 	Vesting	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE 5. PAYMENT OF BENEFIT	 	 	7	 
	 
	 	 	 	 	 	 
	5.01
	 	Retirement Benefit	 	 	7	 
	5.02
	 	Pre-Retirement Death Benefit	 	 	8	 
	5.03
	 	Administrative Acceleration or Delay of Payment	 	 	9	 
	5.04
	 	Withholding	 	 	9	 
	5.05
	 	Payment to Guardian	 	 	9	 
	5.06
	 	Effect of Payment	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE 6. BENEFICIARY DESIGNATION	 	 	10	 
	 
	 	 	 	 	 	 
	6.01
	 	Beneficiary Designation	 	 	10	 
	6.02
	 	Changing Beneficiary	 	 	10	 
	6.03
	 	No Beneficiary Designation	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE 7. AMENDMENT AND TERMINATION	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE 8. MISCELLANEOUS	 	 	12	 
	 
	 	 	 	 	 	 
	8.01
	 	Company Obligation	 	 	12	 
	8.02
	 	Trust Fund	 	 	12	 
	8.03
	 	Nonassignability	 	 	12	 
	8.04
	 	Not a Contract of Employment	 	 	13	 
	8.05
	 	Governing Law	 	 	13	 
	8.06
	 	Severability	 	 	13	 
	8.07
	 	Headings	 	 	13	 
	8.08
	 	Notice	 	 	13	 
	8.09
	 	Successors	 	 	13	 

			
	 	 	 
	AMETEK, Inc. Retirement Plan for Directors
	 	Table of Contents

 

 

ARTICLE 1. PURPOSE AND EFFECTIVE DATE

1.01 Purpose.

     The AMETEK, Inc. Retirement Plan for Directors (the “Plan”) provides retirement benefits to
members of the board of directors of AMETEK, Inc., and its subsidiaries (the “Company”).

1.02 Effective Date.

     The Plan, as hereby amended and restated, is effective with respect to Participants whose
benefit under the Plan was not earned and vested within the meaning of section 409A of the Code as
of January 1, 2005.

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ARTICLE 2. DEFINITIONS AND CONSTRUCTION

	2.01	 	Definitions.
	 
	 	 	As used in the Plan, the following words and phrases shall have the meaning set forth below:

	 	(a)	 	Annual Fees. “Annual Fees” means the fees and other remuneration
expressed as an annual rate payable to a Member in consideration for attending either
regularly scheduled or special meetings of the Board and any committees thereof or
serving as the chair of any committee thereof, but shall not include any amounts
received as reimbursement of expenses incurred by a Member or any amounts received from
the Company for rendering services to the Company in a capacity other than as a Member.
	 
	 	(b)	 	Beneficiary. “Beneficiary” means the person, persons, or entity as
designated by the Participant, entitled under Article 6 to receive any Plan benefits
payable after the Participant’s death.
	 
	 	(c)	 	Board. “Board” means the Board of Directors of AMETEK, Inc.
	 
	 	(d)	 	Cause. “Cause” means (1) misappropriation of funds, (2) habitual
insobriety or substance abuse, (3) conviction of a felony or crime involving moral
turpitude, or (4) gross negligence in the performance of duties that has a material
adverse effect on the business, operations, assets, properties, or financial condition
of the Company.
	 
	 	(e)	 	Change in Control. A “Change in Control” occurs if:

	 	(1)	 	Any one person or more than one person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
ownership of stock of the Company that, together with the stock held by such
person or group of persons, constitutes more than 50 percent of the total fair
market value or total voting power of the stock of the Company. However, if
such person or group of persons is considered to own more than 50 percent of
the total fair market value or total voting power of the stock of the Company
before this transfer of the Company’s stock, the acquisition of additional
stock by the same person or group of persons shall not be considered to cause a
Change in Control of the Company; or
	 
	 	(2)	 	Any one person or more than one person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
(or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or group of persons) ownership of stock of
the Company possessing 30 percent or more of the total voting power of the
stock of the Company. However, if such person or group of persons is
considered to own 30 percent or more of the total voting power of the stock of
the Company before this acquisition, the acquisition of

AMETEK, Inc. Retirement Plan for Directors

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	 	 	 	additional control or stock of the Company by the same person or group of
persons shall not cause a Change in Control of the Company; or
	 
	 	(3)	 	A majority of members of the Company’s Board is replaced during
any 12-month period by directors whose appointment or election is not endorsed
by a majority of the members of the Company’s Board before the date of the
appointment or election; or
	 
	 	(4)	 	Any one person or more than one person acting as a group (as
defined in section 1.409A-3(i)(5)(v)(B) of the Treasury Regulations) acquires
(or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or group of persons) assets from the Company
that have a total gross fair market value equal to substantially all but in no
event less than 40 percent of the total fair market value of all 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. A transfer of assets by the Company
will not result in a Change in Control under this Section 2.01(e)(4), if the
assets are transferred to:

	 	(A)	 	A shareholder of the Company (immediately
before the asset transfer) in exchange for or with respect to its
stock;
	 
	 	(B)	 	An entity, 50 percent or more of the total
value or voting power of which is owned, directly or indirectly, by the
Company immediately after the transfer of assets;
	 
	 	(C)	 	A person or more than one person acting as a
group (as defined in section 1.409A-3(i)(5)(v)(B) of the Treasury
Regulations) that owns, directly or indirectly, 50 percent or more of
the total value or voting power of all the outstanding stock of the
Company; or
	 
	 	(D)	 	An entity, at least 50 percent of the total
value or voting power of which is owned directly or indirectly, by a
person described in Section 2.01(e)(4)(C), above.

	 	 	 	For purposes of this Section 2.01(e), no acquisition, either directly or indirectly,
by the Participant, his affiliates and associates, the Company, any subsidiary of
the Company, any employee benefit plan of the Company or of any subsidiary of the
Company, or any person or entity organized, appointed or established by the Company
for or pursuant to the terms of any such employee benefit plan shall constitute a
Change in Control.
	 
	 	(f)	 	Code. “Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(g)	 	Company. “Company” means AMETEK, Inc.
	 
	 	(h)	 	Member. “Member” means a member of the Board other than an individual
who is, or has been, covered by the Employees’ Retirement Plan of AMETEK, Inc., and who
has accrued or received benefits under such plan.

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	 	(i)	 	Participant. “Participant” means a Member who is eligible and has
become a participant pursuant to Article 3.
	 
	 	(j)	 	Plan. “Plan” means the AMETEK, Inc. Retirement Plan for Directors as
embodied herein and as amended from time to time.
	 
	 	(k)	 	Separates from Service. “Separates from Service” or “Separation from
Service” means separation from service within the meaning of section 409A of the Code.
	 
	 	(l)	 	Year of Service. “Year of Service” means a consecutive twelve-month
period following the earlier of the date of a Member’s election to the Board or his
appointment or election as an officer of the Company, and each anniversary thereof,
during which the Participant serves or has served as either a Member or as an officer
of the Company who is not covered by, or is not accruing benefits under, the Employees’
Retirement Plan of AMETEK, Inc. Notwithstanding the foregoing, a Participant shall not
be credited with more than one Year of Service for any one calendar year, even if he
serves as both a Member and as an officer of the Company during such year.

	2.02	 	Construction.
	 
	 	 	For purposes of the Plan, unless the contrary is clearly indicated by the context,

	 	(a)	 	the use of the masculine gender shall also include within its meaning the
feminine and vice versa,
	 
	 	(b)	 	the use of the singular shall also include within its meaning the plural and
vice versa, and
	 
	 	(c)	 	the word “include” shall mean to include without limitation.

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ARTICLE 3. ELIGIBILITY AND PARTICIPATION

Eligibility and participation in the Plan are limited to directors who became Members on or before
January 1, 1997 and completed three (3) Years of Service. Eligibility and participation were
closed to new Members after that date.

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ARTICLE 4. RETIREMENT BENEFIT

	4.01	 	Amount.
	 
	 	 	The amount of the Participant’s monthly benefit under the Plan shall equal one-twelfth
(1/12) of 100% of the highest rate of Annual Fees in effect for the Participant during the
period in which the Participant served as a Member.
	 
	4.02	 	Vesting.

	 	(a)	 	A Participant’s monthly benefit shall vest as follows:

	 	 	 
	Years of Service	 	Percent of Benefit Vested
	0-2
	 	0%
	3
	 	60%
	4
	 	80%
	5 or more
	 	100%

	 	(b)	 	Notwithstanding any other provision of the Plan to the contrary, the Committee
may cause a forfeiture with respect to all or any portion of the Participant’s benefit
(whether or not vested) if the Committee determines that the Participant’s service has
been terminated for Cause.

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ARTICLE 5. PAYMENT OF BENEFIT

	5.01	 	Retirement Benefit

	 	(a)	 	Timing of Benefit. Payment of a Participant’s monthly benefit shall commence
on the first day of the month coincident with or next following the later of the date
on which the Participant incurs a Separation from Service or his 60th birthday. If the
Participant dies before his benefit commences in accordance with the foregoing
sentence, his monthly benefit (to the extent vested) may be payable to his surviving
spouse or Beneficiary if the requirements of Section 5.02 are satisfied.
	 
	 	(b)	 	Form of Benefit.

	 	(1)	 	Default Form of Payment. The Participant’s benefit shall be
paid in the form of a single life annuity with the first sixty (60) monthly
payments guaranteed, unless the Participant is married and makes a valid
election to receive a joint and 50% survivor annuity in accordance with
subsection (b)(2). If the Participant dies prior to receiving sixty (60)
monthly benefit payments, the remainder of the Participant’s guaranteed sixty
(60) monthly benefit payments shall be paid to his Beneficiary in a lump sum
payment during the month immediately following the month in which the
Participant died.
	 
	 	(2)	 	Election to Receive Joint and 50% Survivor Annuity With
Guaranteed Payments. Before a Participant’s benefit is scheduled to commence
under Section 5.01(a), a married Participant may elect to have his benefit paid
in the form of a joint and 50% survivor annuity with a guarantee that the total
amount paid will equal at least the amount the Participant would have received
under Section 5.01(b)(1) if he had not elected the “joint and 50% survivor
annuity with guaranteed payments.” Under a joint and 50% survivor annuity with
guaranteed payments, (i) the Participant will receive a reduced monthly benefit
and upon his death, his spouse, if then alive, shall receive a monthly benefit
for the remainder of her lifetime in an amount equal to fifty percent (50%) of
the monthly benefit payable during their joint lives, and (ii) if both the
Participant and his surviving spouse die prior to the time their combined
monthly benefit equals the guaranteed payments, the remainder of the guaranteed
payments shall be payable to the surviving spouse’s estate in one lump sum
payment during the month immediately following the month in which the
Participant died. The amount of the joint and 50% survivor annuity with
guaranteed payments shall be the actuarial equivalent of the single life
annuity with sixty (60) guaranteed monthly payments to which the Participant
would otherwise be entitled under Section 5.01(b)(1), and shall be determined
by an actuary selected by the Company, on the basis of the actuarial
assumptions then being used for the purpose of determining actuarial
equivalence under the Employee’s Retirement Plan of AMETEK, Inc. An election
to receive a joint and 50% survivor annuity with guaranteed payments shall (i)
be automatically revoked at the time the Participant’s

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	 	 	 	benefits are to commence, if, at that time, the Participant is unmarried; or
(ii) become irrevocable at the time the Participant’s benefits are to
commence if, at that time, the Participant is married.

	5.02	 	Pre-Retirement Death Benefit
	 
	 	 	If a Participant dies prior to the date his benefit commences under Section 5.01(a), his
surviving spouse (if he is married) or his Beneficiary (if he is not married) shall be
entitled to a Pre-Retirement Death Benefit if the requirements set forth in this Section
5.02 are met.

	 	(a)	 	Participant Married At Time of Death

	 	(1)	 	Eligibility. If a married Participant dies before his benefit
commences under Section 5.01(a), a Pre-Retirement Death Benefit shall be paid
to his surviving spouse pursuant to this Section 5.02(a).
	 
	 	(2)	 	Amount of Benefit. For purposes of this Section 5.02(a), the
Pre-Retirement Death Benefit shall equal the monthly benefit the surviving
spouse would have received if the payment of the Participant’s benefit had
commenced on the day before the Participant’s death in the form of a joint and
50% survivor annuity with guaranteed payments pursuant to Section 5.01(b)(2) of
the Plan.
	 
	 	(3)	 	Form and Timing of Benefit. If the married Participant dies
before attaining age 55, a Pre-Retirement Death Benefit shall be paid on a
monthly basis to his surviving spouse beginning on the first day of the month
following the date the Participant would have attained age 55. If the married
Participant dies after attaining age 55, a Pre-Retirement Death Benefit shall
be paid on a monthly basis to his surviving spouse beginning during the month
immediately following the month in which the Participant died.
	 
	 	(4)	 	Continued Payments after Surviving Spouse’s Death. If the
Participant’s surviving spouse dies before receiving a benefit equal to the
guaranteed payments (as determined under Section 5.01(b)(2) of the Plan) the
remainder of the guaranteed payments shall be paid in a lump sum to the
surviving spouse’s estate.

	 	(b)	 	Participant Not Married at Time of Death

	 	(1)	 	Eligibility. If an unmarried Participant dies before attaining
age 55, a Pre-Retirement Benefit shall be paid to the Participant’s
Beneficiary.
	 
	 	(2)	 	Amount of Benefit. For purposes of this Section 5.02(b), the
Pre-Retirement Death Benefit shall equal the guaranteed sixty (60) monthly
payments under Section 5.01(b)(1).
	 
	 	(3)	 	Form and Timing of Benefit. The Pre-Retirement Death Benefit
under this Section 5.02(b) shall be payable to the Participant’s Beneficiary in
a lump

AMETEK, Inc. Retirement Plan for Directors

Page 8

 

	 	 	 	sum on the first day of the month coincident with or next following the
date on which the Participant would have attained age 55.

	5.03	 	Administrative Acceleration or Delay of Payment.
	 
	 	 	A payment is treated as being made on the date when it is due under the Plan if the payment
is made (a) no earlier than thirty (30) days before the due date specified by the Plan or
(b) on a date later than the due date specified by the Plan that is either (1) in the same
Plan Year (for a payment whose specified due date is on or before September 30) or (2) by
the fifteenth (15th) day of the third calendar month following the date specified
by the Plan (for a payment whose specified due date is on or after October 1).
	 
	5.04	 	Withholding.
	 
	 	 	If for any reason arising in connection with the Plan the Company shall be required to
withhold amounts under applicable federal, state or local tax laws, rules or regulations,
the Company shall be entitled to deduct and withhold such amounts from any cash payment,
whether made pursuant to the Plan or otherwise, to be made by the Company to the person with
respect to whom such withholding arises.
	 
	5.05	 	Payment to Guardian.
	 
	 	 	If a Plan benefit is payable to a minor or a person declared incompetent or to a person
incapable of handling the disposition of the property, the Committee may direct payment to
the guardian, legal representative or person having the care and custody of such minor,
incompetent person. The Committee may require proof of incompetency, minority, incapacity
or guardianship as it may deem appropriate prior to distribution. Such distribution shall
completely discharge the Committee and Company from all liability with respect to such
benefit.
	 
	5.06	 	Effect of Payment.
	 
	 	 	The full payment of the applicable benefit under this Article 5 shall completely discharge
all obligations on the part of the Company to the Participant (and the Participant’s
surviving spouse or Beneficiary) with respect to the operation of this Plan, and the
Participant’s (and the Participant’s Beneficiary’s or surviving spouse’s) rights under this
Plan shall terminate.

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ARTICLE 6. BENEFICIARY DESIGNATION

	6.01	 	Beneficiary Designation.
	 
	 	 	Each Participant shall have the right, at any time, to designate one (1) or more persons or
entity as Beneficiary (both primary as well as secondary) to whom benefits under this Plan
shall be paid in the event of the Participant’s death. Each Beneficiary designation shall
be in a written form prescribed by the Committee and shall be effective only if filed with
the Committee during the Participant’s lifetime.
	 
	6.02	 	Changing Beneficiary.
	 
	 	 	Any Beneficiary designation may be changed without the consent of the previously named
Beneficiary by the filing of a new Beneficiary designation with the Committee during the
Participant’s lifetime.
	 
	6.03	 	No Beneficiary Designation.
	 
	 	 	If any Participant fails to designate a Beneficiary in the manner provided above, if the
designation is void, or if the Beneficiary designated by a deceased Participant dies before
the Participant or before complete distribution of the Participant’s benefits, the
Participant’s Beneficiary shall be the person in the first of the following classes in which
there is a survivor:

	 	(a)	 	the Participant’s surviving spouse;
	 
	 	(b)	 	the Participant’s children in equal shares, except that if any of the children
predeceases the Participant but leaves surviving issue, then such issue shall take by
right of representation the share the deceased child would have taken if living; or
	 
	 	(c)	 	the Participant’s estate.

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ARTICLE 7. AMENDMENT AND TERMINATION

The Board reserves the right to amend or terminate this Plan at any time, it being understood that
neither the termination of the Plan nor any amendment thereto shall diminish the rights of any
individual who, at the date of such amendment or termination, is a Participant or former
Participant or the rights of the spouse of such Participant or former Participant, and with respect
to such Participant or former Participant, or his spouse, the provisions of the Plan shall continue
in full force and effect notwithstanding such amendment or termination.

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ARTICLE 8. MISCELLANEOUS

	8.01	 	Company Obligation.
	 
	 	 	The Company shall not be required to fund any obligations under the Plan. Except as
provided in Section 8.02, any assets that may be accumulated by the Company to meet its
obligations under the Plan shall for all purposes be part of the general assets of the
Company. To the extent that any Participant or Beneficiary acquires a right to receive
payments under the Plan for which the Company is liable, such rights shall be no greater
than the rights of any unsecured general creditor of the Company.
	 
	8.02	 	Trust Fund.
	 
	 	 	The Company shall be responsible for the payment of all benefits provided under the Plan.
Before a Change in Control, at its discretion, the Company may establish one (1) or more
trusts, with such trustees as the Committee may approve, for the purpose of assisting in the
payment of such benefits. Following a Change in Control, the Company shall establish one
(1) or more trusts, with such trustees as the Committee may approve, for the purpose of
assisting in the payment of such benefits, and shall fund such trust with the full amount
necessary to pay all benefits that are reasonably expected to be payable under the Plan.
Although such a trust may be irrevocable, its assets shall be held for payment of all of the
Company’s general creditors in the event of insolvency and shall not be located or
transferred outside the United States. To the extent any benefits provided under the Plan
are paid from any such trust, the Company shall have no further obligation to pay them. If
not paid from the trust, such benefits shall remain the obligation of Company. No assets of
the trust or the Company shall become restricted to provide benefits under the Plan in
connection with a change in the Company’s financial health.
	 
	8.03	 	Nonassignability.

	 	(a)	 	Neither a Participant nor any other person shall have any right to commute,
sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate or convey in advance of actual receipt the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are, expressly
declared to be unassignable and non-transferable. Any attempt to so anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge any benefit under this
Plan, payments of such benefit, in the discretion of the Board, shall terminate and in
such event, the Board shall pay the same or a reduced benefit to or for the benefit of
such Participant or such other person entitled to the benefit, his spouse, children,
parents or other dependents, or any of them, in such manner and in such proportion as
the Board may deem appropriate, provided that such benefit shall be paid at the same
times as it would have been paid to the Participant.
	 
	 	(b)	 	No part of the amounts payable shall, prior to actual payment, be subject to
seizure or sequestration for the payment of any debts, judgments, alimony or separate
maintenance owed by a Participant or any other person, nor be transferable by operation
of law in the event of a Participant’s or any other

AMETEK, Inc. Retirement Plan for Directors

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	 	 	 	person’s bankruptcy or insolvency, except that the Committee may recognize a
domestic relations order in accordance with procedures that it may establish for
this purpose.

	8.04	 	Not a Contract of Employment.
	 
	 	 	This Plan shall not constitute a contract of employment between the Company and the
Participant. Nothing in this Plan shall give a Participant the right to be retained in the
service of the Company or to interfere with the right of the Company to discipline or
discharge a Participant at any time.
	 
	8.05	 	Governing Law.
	 
	 	 	The Plan shall be construed and enforced in accordance with applicable federal law and, to
the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania
(without regard to the legislative or judicial conflict of laws rules of any state or other
jurisdiction).
	 
	8.06	 	Severability.
	 
	 	 	If any provision of the Plan shall be held unlawful or otherwise invalid or unenforceable in
whole or in part, the unlawfulness, invalidity, or unenforceability shall not affect any
other provision of the Plan or part thereof, each of which shall remain in full force and
effect. In addition, if any provision of the Plan shall be found to violate section 409A of
the Code or otherwise result in benefits under the Plan being subject to income tax prior to
distribution, such provision shall be void and unenforceable, and the Plan shall be
administered without regard to such provision.
	 
	8.07	 	Headings.
	 
	 	 	Headings are inserted in this Plan for convenience of reference only and are to be ignored
in the construction of the provisions of the Plan.
	 
	8.08	 	Notice.
	 
	 	 	Any notice required or permitted under the Plan shall be sufficient if in writing and hand
delivered or sent by registered mail, certified mail, or reputable overnight delivery
service. Such notice shall be deemed given as of the date of delivery or, if delivery is
made by mail or overnight delivery, as of the date shown on the postmark on the receipt for
registration or certification or on the records of the overnight delivery company. Mailed
notice to the Committee shall be directed to the Company’s address. Mailed notice to a
Participant or Beneficiary shall be directed to the individual’s last known address in
Company’s records.
	 
	8.09	 	Successors.
	 
	 	 	The provisions of this Plan shall bind the Company and its successors and assigns. The term
successors as used herein shall include any corporate or other business entity which shall,
whether by merger, consolidation, purchase or otherwise acquire all or substantially all of
the business and assets of Company, and successors of any such corporation or other business
entity.

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     IN WITNESS WHEREOF, and as evidence of the adoption of this Plan by the Company, AMETEK, Inc.
has executed the same this 24th day of October, 2007.

	 	 	 	 	 	 	 
	 	 	AMETEK, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Henry J. Policare	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Henry J. Policare	 	 
	 
	 	 	 	 	 	 
	 

	 	DATE: 	11/1/07	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ATTEST	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	/s/ Kathryn E. Sena	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Corporate Secretary	 	 

AMETEK, Inc. Retirement Plan for Directors

Page 14

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