Document:

exhibit101adamsletteragr

                                  Todd A. Adams       December 13, 2018        Dear Todd,    On  behalf  of  the  Board  of  Directors,  the  Company  is  pleased  to  provide  you  this  letter  agreement  (“Letter   Agreement”)  to  set  forth  certain  terms  and  conditions  relating  to  your  continued  employment  with  Rexnord   Corporation (the "Company" or “Employer”) and your right to participate in certain benefit plans of the Employer.   This Letter Agreement  is effective on December 13, 2018 (the “Effective Date”) and the initial term will end on  the third anniversary  of the Effective  Date  (“Initial  Term”).     The  term  of  this  Letter  Agreement  shall  be  automatically extended thereafter for successive one (1) year periods unless, at least ninety (90) days prior  to  the  end  of  the  Initial  Term  or  the  then  current  succeeding  one  (1)-year  extended  term  of  this  Letter  Agreement,  you  or  the  Company  has  notified  the  other  that  the term  hereunder  shall  terminate  upon  its  expiration date.      Position    You will continue to serve as the President and Chief Executive Officer of the Company and shall report exclusively   to the Company’s Board of Directors (the “Board”).  You are expected to use your best efforts to perform your   duties faithfully and efficiently, and to devote substantially all of your business time to the performance of your   duties for the Company.  However, such requirement will not prevent you from (1) participating in charitable, civic,   educational, professional, community or industry affairs, or with prior approval of the Board, serving on the board   of directors or advisory boards of other companies, and (2) managing your and your family’s personal investments,   so long as such activities do not materially interfere with the performance of your duties for the Company.  If the   Board notifies you in writing that it has determined, in its good faith judgment, that your service on any board of   directors or advisory board conflicts with your fiduciary duty to the Company (or creates any appearance thereof),   then you shall resign from such other board as soon as reasonably practicable, considering any fiduciary duty that   you owe to such other company.  The Board shall nominate you for re-election as a member of the Board as long   as you continue to serve as the President and Chief Executive Officer of the Company.      Base Salary    In consideration of your services, your salary will be $965,000 per year, subject to periodic review and may be   increased from time to time by the Board (or a committee thereof), payable in accordance with the standard payroll   practices of the Employer and subject to all applicable withholdings and deductions as required by law.   The base   salary as it may be increased from time to time shall constitute “Base Salary” for purposes of this Letter Agreement.                                                                                                        Page 1 of 8         

 

                                Annual Bonus   You will continue to be eligible to participate in the Company's Management Incentive Compensation Plan (the  "MICP") or such other annual bonus plan that the Employer establishes from time to time, in accordance with the  terms of the MICP or such other plan.  Your annual target bonus, measured against performance criteria to be  determined by the Board (or a committee thereof), will be 125% of Base Salary with a maximum bonus opportunity  of 250% of Base Salary, subject to periodic review and may be increased from time to time by the Board (or a  committee thereof),  The annual target bonus as it may be increased from time to time shall constitute “Annual  Target Bonus” for purposes of this Letter Agreement.   Equity Grants   You will continue to be eligible to participate in the Rexnord Corporation Performance Incentive Plan or other such  long-term incentive plans established by the Company.  Your annual award will be determined in accordance with  such plans and is contemplated to be comprised of a potential combination of various types of equity grants, such  as options, restricted stock units or performance stock units.  Any equity grants that you receive will be governed  by the terms of the plan under which they are granted and the applicable grant agreement.     Benefits   You  shall  continue  to  be  entitled  to  executive  benefits  and  arrangements,  including  but  not  limited  to  group  medical,  dental  and  vision  plans,  wellness  plans,  disability  benefit  plans  or  programs,  life  insurance  plans,  retirement plans, deferred compensation plans, and company-provided automobiles or automobile allowances,  subject to the terms and conditions of such plans and programs and on terms and conditions no less favorable  than any other senior executive of the Company. You will be entitled to paid vacation in accordance with the  Employer's policies in effect from time to time but in no event less than four (4) weeks per year (as pro-rated for  partial years of employment).    Stock Ownership Requirements   You  will  be  subject  to  the  Rexnord  Executive  Officer  Stock  Ownership  Guidelines  or  any  successor  stock  ownership guidelines applicable to executives that are in place from time to time, as approved by the Board.     Death or Disability Benefits   If your employment is terminated due to death or Disability (as defined under the Company’s then-current long- term  disability  plan  in  which  you  participate),  then  the  Company  shall  pay  or  provide  you  (or  the  legal  representative of your estate in the case of your death), in addition to payment for any accrued but unpaid base  salary, unused  vacation, and unreimbursed expenses (collectively, “Accrued Obligations”), and  any insurance  proceeds or benefits you are entitled to under Company benefit plans, with:           (1) any  unpaid  bonus  earned  with  respect  to  any  fiscal  year  ending  on  or  preceding  the  date  of  termination,  payable  when bonuses  are paid  generally  to senior executives  for such year (“Accrued Bonus”);                                                                                                 Page 2 of 8         

 

                                       (2) a pro-rated  annual bonus for the fiscal year  in which such termination  occurs, the amount of which  shall be  based  on actual  performance  under  the applicable  bonus  plan  (for this  purpose  determined  at fiscal  year-end, by treating Company financial performance  goals for such fiscal year as the only performance  goals  applicable  to  you  and  without  any  exercise  of  negative  discretion  by  the  Committee)  and  a  fraction,  the  numerator of which  is the number of days elapsed during the performance  year through the date of termination  and the denominator  of which  is 365, which  pro-rated  bonus  shall be paid  when  bonuses are paid generally   to  senior  executives  for  such  year  ("Pro-Rated   Bonus"); and           (3) all unvested options and long-term incentive awards granted to you through the date of termination  shall vest and any such vested awards granted shall be exercisable, in accordance with the terms of the plan  under which they are granted and the applicable award agreement.     Severance and Change in Control Benefits   You are entitled to participate in the Rexnord Corporation Executive Severance Plan, as in effect on the date of  this Letter Agreement (the "Severance Plan") and the Rexnord Corporation Executive Change in Control Plan, as  in effect on the date of this Letter Agreement (the "Change in Control Plan") upon the terms and conditions of  such plans as in effect on the date of this Letter Agreement, except as otherwise provided below.     Severance Plan   Upon your Qualifying Termination (as defined in the Severance Plan), you will receive salary continuation and  subsidized COBRA benefits in accordance with the terms of such Severance Plan, except that:         Your Severance Pay will equal the product of (A) the sum of (1) your then current Base Salary plus (2)         your Annual Target Bonus (B) multiplied by two (2), and will be paid over a period of 24 months;         Your Subsidized COBRA will continue for a period of 24 months;         The Restricted Services Obligation in Section 6.2, the Customer Non-Solicitation covenant in Section 6.3,         and the Non-Solicitation of Employees covenant in Section 6.4 shall each continue for a period of 24         months after termination of employment;         Subsection (d) in the definition of Cause in Section 2.3, as it applies to you, shall be revised to read as         follows: “An Executive's breach of any representation, warranty or covenant under this Plan, an award         agreement or an employment agreement or other agreement with an Employer.”      In addition to the benefits provided under the Severance Plan, upon a Qualifying Termination (as defined in the  Severance Plan), you will also be eligible to receive payment for (1) any Accrued Obligations, (2) any Accrued  Bonus, and (3) your Pro-Rated Bonus for the year of termination. In addition, your vested options shall continue  to be exercisable until at least the earlier of (x) one year after the date of termination and (y) the expiration of the  original scheduled term of such options.          Change in Control Plan                                                                                               Page 3 of 8         

 

                                Upon your Qualifying Termination (as defined in the Change in Control Plan), you will receive the Base Salary  continuation benefit and accelerated equity award vesting in accordance with the terms of such Change in Control  Plan, except that:         Your CIC Severance Pay will equal the product of (A) the sum of (1) your then current Base Salary plus         (2) your Annual Target Bonus (B) multiplied by two (2);        Your Subsidized COBRA will continue for a period of 24 months;         The Restricted Services Obligation in Section 5.2, the Customer Non-Solicitation covenant in Section 5.3,         and the Non-Solicitation of Employees covenant in Section 5.4 shall continue for a period of two (2) years         after termination of employment;         The definition of Good Reason, as it applies to you, shall be revised by inserting the following text after         the end of subsection (c):         (d) Failure by the Company to elect or re-elect you as a member of the Board;         Subsection (d) in the definition of Cause in Section 2.4, as it applies to you, shall be revised to read as         follows: “An Executive's breach of any representation, warranty or covenant under this Plan, an award         agreement or an employment agreement or other agreement with an Employer.”       In addition to the benefits provided under the Change in Control Plan, upon a Qualifying Termination (as defined  in the Change in Control Plan), you will also be eligible to receive payment for (1) any Accrued Obligations, (2)  any Accrued Bonus, and (3) your Pro-Rated Bonus for the year of termination.    Conditions to Receive Termination Benefits   Your right to receive any of the benefits provided hereunder upon termination of employment for any reason (other  than the Accrued Obligations), including but not limited to any benefits provided under the Severance Plan and  Change in Control Plan, shall be subject to the terms and conditions set forth in the Severance Plan and Change  in Control Plan, respectively, except that the General Release shall be substantially in the form of Exhibit A.     No Duplication of Benefits   This Letter Agreement replaces any agreement that you have with the Employer relating to your employment or  any  agreement  or  plan  providing  severance  or  change  in  control  benefits,  including  but  not  limited  to  any  employment agreement, any retention and change in control agreement, the Rexnord LLC Severance Pay Plan,  the  Employment  Agreement  dated  November  9,  2012  and  the  Amendment  to  Employment  Agreement  dated  August 6, 2015 between you and the Company.                                                                                                  Page 4 of 8         

 

                                      Executive Covenants   You  will  be  subject  to  the  Rexnord  Code  of  Business  Conduct  and  Ethics  (the  “Code”)  and  a  Confidentiality  Agreement,  both  of  which  you  signed  when  your  employment  began.    Among  other  things,  the  Code  and  Confidentiality Agreement require you to safeguard confidential information such as information regarding product  design,  manufacturing  processes,  supply  sources,  customer  identification,  pricing,  sales  distribution  and  marketing  and  prohibit  you  from  soliciting  customer  or  employees  for  a  period  of  two  years  following  your  departure from the Employer.  In addition, if you have received an equity grant, these restrictive obligations, as  well  as  a  non-compete  covenant,  are  required  by  the  Equity  Award  Agreement(s)  that  you  executed  in  consideration for the equity grants that you received.  Finally, you will be subject to the same restrictive obligations  by virtue of your participation in the Severance Plan and Change in Control Plan.     Cooperation   Following termination of your employment for any reason, you shall, upon reasonable advance notice, and to the  extent it does not interfere with previously scheduled travel plans and does not unreasonably interfere with your  other business activities or employment obligations, assist and cooperate with the Company with regard to any  matter or project in which you were involved during your employment, including any litigation. The Company shall  compensate you for reasonable expenses incurred in connection with such cooperation and assistance.   Clawback   Any amounts payable hereunder, including amounts payable under this letter or the plans referred to herein, are  subject to the terms of the Company's recoupment, clawback or similar policies as may be in effect from time to  time, as approved by the Board,  as well as any similar provisions of applicable law, any of which could in certain  circumstances require repayment or forfeiture of any cash or other property received under this letter.     Assignment of Letter Agreement   The Company shall assign this Letter Agreement to any successor to all or substantially all of the business or  assets of the Company provided that the Company shall require such successor to expressly assume and agree  to perform this Agreement in the same manner and to the same extent that the Company would be required to  perform it if no such succession had taken place and shall deliver a copy of such assignment to you.   Governing Law   This offer letter shall be governed by the laws of Wisconsin, without regard to conflict of law principles.                                                                                                         Page 5 of 8         

 

                                Contingencies   This Letter Agreement is contingent upon your acceptance of the below terms.  This Letter Agreement will be  withdrawn if this condition is not satisfied.       Sincerely,   /s/ George Powers   George Powers   On behalf of Rexnord        Acceptance of Terms of this Letter Agreement   I have read, understood and accept all the terms of this Letter Agreement as set forth above and the terms of the  Severance Plan and the Change in Control Plan, as attached hereto. I have not relied on any agreements or  representations,  express  or  implied,  that  are  not  set  forth  expressly  in  the  foregoing  Letter  Agreement  or  the  Severance  Plan  and  Change  in  Control  Plan,  and  this  Letter  Agreement  supersedes  all  prior  and  contemporaneous  understandings,  agreements,  representations  and  warranties,  both  written  and  oral,  with  respect  to  the  subject  matter  of  this  Letter  Agreement.   I  hereby  consent  to  the  terms  of  the  above  Letter  Agreement, the Severance Plan and the Change in Control Plan, including but not limited to the confidentiality,  nonsolicitation, noncompetition, nondisparagement and other similar terms of such Plans, and to the termination  of  my  participation  in  any  other  severance  or  change  in  control  plans  of  the  Employer  or  any  employment,  severance or change in control agreement with the Employer.    I also hereby consent to the termination of the  Employment Agreement dated November 9, 2012 and the Amendment to Employment Agreement dated August  6, 2015 between me and the Company effective as of the date set forth below.   Todd A. Adams   Signed    /s/ Todd A. Adams    Date    December 13, 2018                                                                                                        Page 6 of 8         

 

                                                                EXHIBIT A                                                                     GENERAL RELEASE OF ALL CLAIMS                                                    1. For and in consideration of the promises made in the Letter Agreement between Rexnord  Corporation (“Company”) and the undersigned “(Executive”) dated December 13, 2018 (“Letter  Agreement”), the adequacy of which is hereby acknowledged, Executive , for himself, his heirs,  administrators, legal representatives, executors, successors, assigns, and all other persons claiming  through Executive, if any (collectively, “Releasers”), does hereby release, waive, and forever  discharge the Company, the Company’s subsidiaries, parents, affiliates, related organizations,  employees, officers, directors, attorneys, successors, and assigns (collectively, the “Releasees”) from,  and does fully waive any obligations of Releasees to Releasers for, any and all liability, actions,  charges, causes of action, demands, damages, or claims for relief, remuneration, sums of money,  accounts or expenses (including attorneys’ fees and costs) of any kind whatsoever, whether known or  unknown or contingent or absolute, which heretofore has been or which hereafter may be suffered or  sustained, directly or indirectly, by Releasers in consequence of, arising out of, or in any way relating  to Executive’s employment with the Company or any of its affiliates or the termination of Executive’s  employment. The foregoing release and discharge, waiver and covenant not to sue includes, but is not  limited to, all claims and any obligations or causes of action arising from such claims, under common  law including wrongful or retaliatory discharge, breach of contract (including but not limited to any  claims under the Employment Agreement between the Company and Executive, dated November 9,  2012, as amended by the Amendment to Employment Agreement dated August 6, 2015, as well as any  claims under the Letter Agreement, and any claims under any stock option and restricted stock units  agreements between Executive and the Company) and any action arising in tort including libel,  slander, defamation or intentional infliction of emotional distress, and claims under any federal, state  or local statute including Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866 and  1871 (42 U.S.C. § 1981), the National Labor Relations Act, the Age Discrimination in Employment  Act (ADEA), the Fair Labor Standards Act, the Americans with Disabilities Act of 1990, the  Rehabilitation Act of 1973,), or the discrimination or employment laws of any state or municipality, or  any claims under any express or implied contract which Releasers may claim existed with Releasees.  This release and waiver does not apply to any claims or rights that may arise after the date Executive  signs this General Release. The foregoing release does not apply to any claims of indemnification  under a separate indemnification agreement with the Company or rights of coverage under directors  and officers liability insurance.          2. Excluded from this release and waiver are any claims which cannot be waived by law,  including but not limited to the right to participate in an investigation conducted by certain government  agencies. Executive does, however, waive Executive’s right to any monetary recovery should any  agency (such as the Equal Employment Opportunity Commission) pursue any claims on Executive’s  behalf. Executive represents and warrants that Executive has not filed any complaint, charge, or  lawsuit against the Releasees with any government agency or any court.          3. Executive agrees never to sue Releasees in any forum for any claim covered by the above  waiver and release language, except that Executive may bring a claim under the ADEA to challenge  this General Release or as otherwise provided in this General Release. If Executive violates this                                                                             Page 7 of 8        

 

                           General Release by suing Releasees, other than under the ADEA or as otherwise set forth in Section 1  hereof, Executive shall be liable to the Company for its reasonable attorneys’ fees and other litigation  costs incurred in defending against such a suit. Nothing in this General Release is intended to reflect  any party’s belief that Executive’s waiver of claims under ADEA is invalid or unenforceable, it being  the interest of the parties that such claims are waived.          4. Executive acknowledges, agrees and affirms that he is subject to certain post-employment  covenants, which covenants survive the termination of his employment and the execution of this  General Release.                 5. Executive acknowledges and recites that:                   (a) Executive has executed this General Release knowingly and voluntarily;                      (b) Executive has read and understands this General Release in its entirety;                      (c) Executive has been advised and directed orally and in writing (and this subparagraph (c)              constitutes such written direction) to seek legal counsel and any other advice he wishes              with respect to the terms of this General Release before executing it;                      (d) Executive’s execution of this General Release has not been coerced by any employee or              agent of the Company; and                      (e)  Executive has been offered twenty-one (21) calendar days after receipt of this General              Release to consider its terms before executing it.                   6. This General Release shall be governed by the internal laws (and not the choice of laws) of  the State of Delaware, except for the application of pre-emptive Federal law.          7. Executive shall have seven (7) days from the date hereof to revoke this General Release by  providing written notice of the revocation to the Company, by hand delivering, faxing or mailing  notice to the Company to the attention of the General Counsel, upon which revocation this General  Release shall be unenforceable and null and void and in the absence of such revocation this General  Release shall be binding and irrevocable by Executive.    PLEASE READ THIS AGREEMENT CAREFULLY.  IT CONTAINS A RELEASE OF ALL  KNOWN AND UNKNOWN CLAIMS.      Date:  _________________, 20___     EXECUTIVE                                        __________________________________________                                      Todd A. Adams                                                                                                                         Page 8 of 8exhibit102executivechang

                                          REXNORD CORPORATION                           EXECUTIVE CHANGE IN CONTROL PLAN                                             Effective May 18, 2016                                                                            As amended through December 13, 2018   4811-1906-7992.2  

 

                                     Table of Contents                                                                                                                                Page                 ARTICLE 1     PURPOSE OF THE PLAN .............................................................................. 1        ARTICLE 2     DEFINITIONS ................................................................................................. 1              2.1  Accelerated Vesting ............................................................................................... 1              2.2  Base Salary............................................................................................................. 1              2.3  Board ...................................................................................................................... 1              2.4  Cause ...................................................................................................................... 1              2.5  Change in Control .................................................................................................. 2              2.6  CIC Severance Pay ................................................................................................ 3              2.7  Code ....................................................................................................................... 3              2.8  Company ................................................................................................................ 3              2.9  Disability ................................................................................................................ 3              2.10  Eligible Executive .................................................................................................. 3              2.11  Employer ................................................................................................................ 3              2.12  Executive................................................................................................................ 3              2.13  Good Reason .......................................................................................................... 3              2.14  Plan ........................................................................................................................ 4              2.15  Plan Administrator ................................................................................................. 4              2.16  Protection Period .................................................................................................... 4              2.17  Qualifying Termination ......................................................................................... 4              2.18  Subsidized COBRA ............................................................................................... 4        ARTICLE 3     ELIGIBILITY AND BENEFITS ..................................................................... 4              3.1  Eligibility for Benefits ........................................................................................... 4              3.2  CIC Severance Payment ........................................................................................ 4              3.3  Subsidized COBRA Coverage ............................................................................... 5              3.4  Accelerated Vesting ............................................................................................... 5              3.5  Death of Executive ................................................................................................. 6              3.6  Compliance with Code Section 409A .................................................................... 6              3.7  No Duplication of Benefits .................................................................................... 7        ARTICLE 4     CONDITIONS FOR PAYMENT AND RIGHT TO TERMINATE                        CIC SEVERANCE BENEFITS ....................................................................... 7              4.1  Conditions for Payment of Benefits ....................................................................... 7                                              -i-            4811-1906-7992.2  

 

                                     Table of Contents                                          (continued)                                                                                 Page                       4.2  Right to Terminate Severance Benefits ................................................................. 8              4.3  Clawback................................................................................................................ 8        ARTICLE 5     EXECUTIVE COVENANTS .......................................................................... 8              5.1  Reasonableness of Restrictions .............................................................................. 8              5.2  Restricted Services Obligation ............................................................................... 9              5.3  Customer Non-Solicitation .................................................................................... 9              5.4  Non-Solicitation of Employees .............................................................................. 9              5.5  Non-Disparagement ............................................................................................... 9              5.6  Non-Disclosure of Confidential Information ....................................................... 10              5.7  Return of Company Property ............................................................................... 10              5.8  Injunctive Relief................................................................................................... 10        ARTICLE 6     GENERAL RULES ....................................................................................... 11              6.1  Right to Withhold Taxes ...................................................................................... 11              6.2  Assignment .......................................................................................................... 11              6.3  Unfunded Plan ..................................................................................................... 11              6.4  Code Section 409A .............................................................................................. 11              6.5  Governing Laws; Other Obligations .................................................................... 11        ARTICLE 7     AMENDMENT AND TERMINATION ....................................................... 11        ARTICLE 8     ADMINISTRATION ..................................................................................... 13              8.1  Powers and Duties................................................................................................ 13              8.2  Finality of Action ................................................................................................. 13              8.3  Claim Procedure................................................................................................... 13                                               -ii-            4811-1906-7992.2  

 

                                            Rexnord Corporation                                Executive Change in Control Plan                                                 ARTICLE 1                                   PURPOSE OF THE PLAN               The Rexnord Corporation Executive Change in Control Plan (the “Plan”) outlines certain        benefits available to eligible Executives whose employment with the Company is involuntarily        terminated in connection with a Change in Control under the conditions described below. The        Board considers the maintenance of a sound management team to be essential to protecting and        enhancing the best interests of the Company and its stockholders. The Company recognizes that        the possibility of a Change in Control may exist from time to time, and that this possibility, and        the uncertainty and questions it may raise among management, may result in the departure or        distraction of management personnel to the detriment of the Company and its stockholders.        Accordingly, the Board has determined that appropriate steps should be taken to encourage the        continued attention and dedication of the Executives to their assigned duties without the        distraction that may arise from the possibility of a Change in Control.                                                  ARTICLE 2                                        DEFINITIONS               As used in the Plan, the following words and phrases shall have the following respective        meanings:               2.1   Accelerated Vesting is defined in Section 3.4 of the Plan.                 2.2   Base Salary means an Eligible Executive’s annual base salary in effect on the date        of his or her Qualifying Termination.               2.3   Board means the Board of Directors of the Company.               2.4   Cause means any of the following:                      (a)   An Executive’s willful and continued failure to perform substantially his                          or her duties owed to the Employer after a written demand for substantial                          performance is delivered to the Executive specifically identifying the                          nature of such unacceptable performance and is not cured by the                          Executive within a reasonable period, not to exceed 30 days;                      (b)   An Executive is convicted of (or pleads guilty or no contest to) a felony or                          any crime involving moral turpitude;                      (c)   An Executive has engaged in conduct that constitutes gross misconduct in                          the performance of his or her employment duties; or                     (d)   An Executive's breach of any representation, warranty or covenant under                          this Plan, an award agreement or an employment agreement or other                          agreement or arrangement with an Employer.                                                     4811-1906-7992.2  

 

               An act or omission by an Executive shall not be “willful” if conducted in good faith and with the        Executive’s reasonable belief that such conduct is in the best interests of the Employer.                2.5   Change in Control means the occurrence of any of the following events:                      (a)   The acquisition by any individual, entity or group (within the meaning of                          Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as                          amended (the “Exchange Act”)) (a “Person”) of beneficial ownership                          (within the meaning of Rule 13d-3 promulgated under the Exchange Act)                          of more than 50% of either (i) the then-outstanding shares of common                          stock of the Company (the “Outstanding Company Common Stock”) or                          (ii) the combined voting power of the then-outstanding voting securities of                          the Company entitled to vote generally in the election of directors (the                          “Outstanding Company Voting Securities”); provided, however, that for                          purposes of this subsection (a), the following acquisitions shall not                          constitute a Change in Control: (1) any acquisition directly from the                          Company, (2) any acquisition by the Company, (3) any acquisition by any                          employee benefit plan (or related trust) sponsored or maintained by the                          Company or any corporation controlled by the Company, or (4) any                          acquisition by any corporation pursuant to a transaction which complies                          with clauses (1) and (2) of subsection (c) of this definition;                      (b)   The cessation for any reason of individuals who, as of May 18, 2016,                          constitute the Board (the “Incumbent Board”) to constitute at least a                          majority of the Board; provided, however, that any individual becoming a                          director subsequent to the date hereof whose election, or nomination for                          election by the Company’s stockholders, was approved by a vote of at                          least a majority of the directors then comprising the Incumbent Board                          shall be considered as though such individual were a member of the                          Incumbent Board, but excluding, for this purpose, any such individual                          whose initial assumption of office occurs as a result of an actual or                          threatened election contest with respect to the election or removal of                          directors or other actual or threatened solicitation of proxies or consents                          by or on behalf of a Person other than the Board;                     (c)   The consummation of a reorganization, merger or consolidation or sale or                          other disposition of all or substantially all of the assets of the Company (a                          “Business Combination”), in each case, unless, following such Business                          Combination, (1) all or substantially all of the individuals and entities who                          were the beneficial owners, respectively, of the Outstanding Company                          Common Stock and Outstanding Company Voting Securities immediately                          prior to such Business Combination beneficially own, directly or                          indirectly, more than 50% of, respectively, the then-outstanding shares of                          common stock and the combined voting power of the then-outstanding                          voting securities entitled to vote generally in the election of directors, as                          the case may be, of the corporation resulting from such Business                          Combination (including, without limitation, a corporation which as a                                                  4811-1906-7992.2  

 

                                 result of such transaction owns the Company or all or substantially all of                          the Company’s assets either directly or through one or more subsidiaries)                          in substantially the same proportions as their ownership, immediately prior                          to such Business Combination of the Outstanding Company Common                          Stock and Outstanding Company Voting Securities, as the case may be,                          and (2) at least a majority of the members of the board of directors of the                          corporation resulting from such Business Combination were members of                          the Incumbent Board at the time of the execution of the initial agreement,                          or of the action of the Board, providing for such Business Combination; or                      (d)   The approval by the stockholders of the Company of a complete                          liquidation or dissolution of the Company.                2.6   CIC Severance Pay is defined in Section 3.2 of the Plan.               2.7   Code means the Internal Revenue Code of 1986, as amended.               2.8   Company means Rexnord Corporation.               2.9   Disability means disability as defined under the Employer's then-current long        term disability insurance plan in which the Executive participates.                 2.10  Eligible Executive is defined in Section 3.1 of this Plan.                2.11  Employer means Rexnord Corporation or any of its subsidiaries that employs an        Eligible Executive on the applicable date.                 2.12  Executive means the Company's officers as designated in accordance with Rule        16a-1(f) under the Securities Exchange Act of 1934, members of the Company's Executive        Council and any other executive, officer or key employee of an Employer designed by the Chief        Executive Officer of the Company as eligible to participate in the Plan.               2.13  Good Reason means, without the express written consent of an Executive, the        occurrence of any of the following events during a Protection Period:                     (a)   An Executive's Base Salary or target annual bonus opportunity under the                          Company's Management Incentive Compensation Plan or other similar                          annual bonus plan of the Company or any other Employer is materially                          reduced;                      (b)   An Executive’s duties or responsibilities are negatively and materially                          changed in a manner inconsistent with the Executive’s position (including                          status, offices, titles, and reporting responsibilities) or authority; or                     (c)   The Company requires an Executive's principal office to be relocated                          more than 50 miles from its location as of the date immediate preceding a                          Change in Control.                                                      4811-1906-7992.2  

 

                     Notwithstanding the foregoing, Good Reason shall not exist unless the Executive        provides the Board of Directors of the Company not less than 30 nor more than 90 days’ written        notice, with specificity, of the grounds constituting Good Reason and an opportunity within such        notice period for the Company to cure such grounds, and the Company fails to cure such grounds        within the prescribed time period. Such notice shall be given within 90 days following the initial        existence of such grounds constituting Good Reason for such notice and subsequent termination,        if not so cured above, to be effective.               2.14  Plan means this Rexnord Corporation Executive Change in Control Plan.               2.15  Plan Administrator means the Compensation Committee of the Board or such        other person or committee appointed from time to time by the Plan Administrator to administer        the Plan.                2.16  Protection Period means the period commencing 90 days prior to the occurrence        of a Change in Control and ending on the second anniversary of the date of the Change in        Control.                 2.17  Qualifying Termination means a termination of an Executive's employment with        all Employers (i) involuntarily by the Company without Cause (and other than due to his or her        death or Disability) or (ii) voluntarily by an Executive for Good Reason, and in either case only        during a Protection Period.                 2.18  Subsidized COBRA is defined in Section 3.3 of the Plan.                                             ARTICLE 3                                ELIGIBILITY AND BENEFITS               3.1   Eligibility for Benefits.  An Executive (i) whose employment with the Employer        ends due to a Qualifying Termination and (ii) who satisfies the "Conditions for Payment of        Benefits" set forth in Article 4 below (an "Eligible Executive") shall be eligible for the benefits        described in this Article 3.  For avoidance of doubt, an Executive shall not be eligible to receive        the benefits under the Plan if the Company, in its sole discretion, determines that the Executive’s        employment is terminated due to a resignation or voluntary termination of employment, due to        the Executive's death or Disability, for Cause or for any reason other than a Qualifying        Termination.  Further, for the avoidance of doubt, the provisions of this Article 3 shall not apply        unless a Change in Control actually occurs.                 3.2   CIC Severance Payment.  An Eligible Executive shall receive a lump sum        payment in the aggregate amount equal to the product of the Eligible Executive's Base Salary        multiplied by 1.5 ("CIC Severance Pay").  The CIC Severance Pay will be paid within 10        business days after Executive’s Qualifying Termination or, in the event of a termination of        employment occurring prior to the Change in Control, within 10 business days after the Change        in Control; provided, unless the Change of Control occurring on or preceding such termination        also meets the requirements of Section 409A(a)(2)(A)(v) of the Code and Treasury        Regulation Section 1.409A-3(i)(5) (or any successor provision) thereunder, the amount payable        to an Eligible Executive under this Section 3.2 shall be paid to such Eligible Executive in equal        bi-weekly payroll installments over a period of 18 months, not in a lump sum, to the extent                                                  4811-1906-7992.2  

 

               necessary to avoid the application of Section 409A(a)(1)(A) and (B) (and in the event that CIC        Severance Pay is payable in installments, each installment payment shall be treated as a separate        payment within the meaning of Code Section 409A).                     3.3   Subsidized COBRA Coverage.  Subject to the Eligible Executive’s continued co-       payment of premiums, an Eligible Executive may continue participation for 18 months in the        medical, dental and vision coverage under the Company’s health benefits plan which covers the        Eligible Executive (and his or her eligible dependents) upon the same terms and conditions        (except for the requirement of the Eligible Executive’s continued employment) in effect for        active employees of the Employer ("Subsidized COBRA"). In the event the Eligible Executive        obtains other employment that offers substantially similar or more favorable medical benefits,        such continuation of Subsidized COBRA coverage by the Employer under this subsection shall        immediately cease. The continuation of health benefits under this Section shall reduce the period        of coverage and count against the Eligible Executive’s right to healthcare continuation benefits        under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA").                 3.4   Accelerated Vesting.  The following terms shall apply to an Eligible Executive's        options and other long-term incentive awards:                     (a)   All of an Eligible Executive’s unvested options and other long-term                          incentive awards granted to the Eligible Executive through the date of                          termination shall vest upon the Qualifying Termination or, in the event of                          a Qualifying Termination prior to the Change in Control, upon the Change                          in Control (and if such options and awards would otherwise be forfeited                          and the Qualifying Termination occurs during the 90-day period preceding                          the Change in Control in the absence of a Change in Control, such awards                          shall remain outstanding for up to 90 days solely for the purpose of                          determining whether Eligible Executive becomes entitled to vest in such                          awards pursuant to this Section but otherwise shall not be payable or                          exercisable following the date on which they would have otherwise been                          forfeited (unless the Change in Control subsequently occurs during such                          90-day period)) (the vesting described in this clause (a) being referred to                          as "Accelerated Vesting");                      (b)   All of the Eligible Executive's options shall continue to be exercisable                          following a Qualifying Termination until the earlier of (i) one year after                          the date of termination and (ii) the expiration of the original scheduled                          term of such options;                        (c)   Any limitation on the acceleration of the vesting of options (that would                          otherwise be applicable pursuant to Section 7.5 of Rexnord Corporation                          Performance Incentive Plan or otherwise) to reduce or eliminate the                          effects of Section 280G and/or Section 4999 of the Code, shall not be                          implemented unless the after-tax amount the Eligible Executive receives                          would be increased (as compared to the after-tax amount the Eligible                          Executive would receive in the absence of such limitation on acceleration                          of vesting), and in such event such limitation on acceleration of vesting                                                  4811-1906-7992.2  

 

                                 shall be implemented to the minimum extent necessary to maximize the                          Eligible Executive's after-tax amount, provided that the Eligible Executive                          shall determine the order in which such limitation on acceleration of                          vesting is applied or, solely if required to comply with Section 409A of the                          Code, the option acceleration limitation shall be applied in the reverse                          order of scheduled vesting dates (i.e., the option tranche that would have                          vested first in the absence of a Change in Control will be the last tranche                          to have its acceleration limited); and                      (d)   All of an Eligible Executive’s unvested long-term incentive awards where                          the number of shares that are earned upon vesting or the amount of                          payment varies dependent upon attainment of a performance level will be                          deemed earned at the greater of: (i) the “target” performance level (i.e.,                          100% payout) or (ii) the actual performance measured through the date of                          the Qualifying Termination or, in the event of a Qualifying Termination                          prior to the Change in Control, upon the Change in Control.                3.5   Death of Executive.  In the event of an Eligible Executive's death prior to receipt        of all CIC Severance Pay, the balance of such benefits shall be paid in a lump sum to the Eligible        Executive’s spouse, if any, or if none, to the Eligible Executive's estate.               3.6   Compliance with Code Section 409A.  Notwithstanding the foregoing or any        provision of the Plan to the contrary, to the extent that the CIC Severance Pay hereunder        constitutes a "deferral of compensation" under a "nonqualified deferred compensation plan"        under Code Section 409A and regulations thereunder and does not qualify as a "short-term        deferral" under Treasury Regulation Section 1.409A-1(b)(4), the following provisions shall        apply:                     (a)   If such CIC Severance Pay is payable on account of an Executive’s                          “involuntary separation from service” as defined in Treasury Regulation                          Section 1.409A-1(n) (an "Involuntary Separation from Service"), the                          Executive shall receive such amount of his or her CIC Severance Pay                          during the 6-month period immediately following the date of termination                          as equals the lesser of: (x) such CIC Severance Pay amount due Executive                          under Section 4.2 during such 6-month period or (y) two multiplied by the                          compensation limit in effect under Section 401(a)(17) of the Code for the                          calendar year in which the date of termination occurs and as otherwise                          provided under Treasury Regulation Section 1.409A-1(b)(9)(iii) and shall                          be entitled to such of his or her CIC Severance Pay benefits as satisfy the                          exception under Treasury Regulation Section 1.409A-1(b)(9)(v) (the                          “Limitation Amount”).                      (b)   To the extent that, upon such Involuntary Separation from Service, the                          amount of CIC Severance Pay that would have been payable to the                          Executive during the 6-month period following the last day of his or her                          employment exceeds the Limitation Amount, such excess shall be paid on                                                   4811-1906-7992.2  

 

                                 the first regular bi-weekly payroll date following the expiration of such 6-                         month period.                     (c)   If the Company reasonably determines that such employment termination                          is not an Involuntary Separation from Service, all CIC Severance Pay that                          would have been payable to the Executive under the Plan during the 6-                         month period immediately following the date of termination, but for such                          determination, shall be paid on the first regular bi-weekly payroll date                          immediately following the expiration of such 6-month period following                          the date of termination.                      (d)   Any CIC Severance Pay payments that are postponed shall accrue interest                          at an annual rate (compounded monthly) equal to the short-term applicable                          federal rate (as in effect under Section 1274(d) of the Code on the last day                          of the Executive’s employment) plus 100 basis points, which interest shall                          be paid on the first regular bi-weekly payroll date immediately following                          the expiration of the 6-month period following the date of termination.                3.7   No Duplication of Benefits.  Notwithstanding the provisions of Article 3 or any        other provision of the Plan to the contrary, any benefits provided under this Plan to an Eligible        Executive shall be in lieu of any termination or severance payments or benefits for which such        Executive may be eligible under any plan of or agreement or arrangement with an Employer,        including but not limited to the Rexnord LLC Severance Pay Plan or the Rexnord Corporation        Executive Severance Plan.  For avoidance of doubt, upon a Qualifying Termination, an        Executive shall only be entitled to CIC Severance Pay and Subsidized COBRA under this Plan        and shall not be entitled to severance benefits, change in control benefits or subsidized COBRA        under another plan of or arrangement with an Employer.                                          ARTICLE 4                  CONDITIONS FOR PAYMENT AND RIGHT TO TERMINATE                                  CIC SEVERANCE BENEFITS               4.1   Conditions for Payment of Benefits.  An Executive who has a Qualifying        Termination will not be eligible for CIC Severance Pay, Subsidized COBRA or Accelerated        Vesting unless the Company determines that the Executive has satisfied all of the following        conditions:                     (a)   Consent to and compliance with the "Executive Covenants" in Article 5                          below;                     (b)    Delivery, within 21 days after presentation thereof by the Company to the                          Executive, to the Company of an executed Agreement and general release                          (the “General Release”) in the form determined by the Company, and                          which may be revised by the Company in its sole discretion; and                      (c)   Delivery to the Company of a resignation from all offices, directorships                          and fiduciary positions with the Company, its affiliates and employee                          benefit plans.                                                  4811-1906-7992.2  

 

               Notwithstanding the due date of any benefits or payments under Article 3, any amounts due        following a Qualifying Termination under the Plan shall not be payable until after the expiration        of any statutory revocation period applicable to the General Release without Executive having        revoked such General Release which must occur by the 53rd day after the later of the        Executive’s termination of employment or the Change in Control (the “Release Condition”) and        any such amounts shall commence on the later of the applicable due date or five (5) business        days after the Release Condition is satisfied, provided that, if the 60-day period following        termination of employment spans two calendar years, then any payments and benefits subject to        Code Section 409A shall commence on the later of the applicable due date or on a date during        that portion of such 60-day period occurring in the calendar year following the year of        termination of employment, provided that the Release Condition is satisfied.              4.2   Right to Terminate Severance Benefits.  Notwithstanding anything in this Plan to        the contrary, the Company shall have the right to terminate the benefits payable under this Plan        at any time in the event that the Company determines that a former Executive receiving benefits        under this Plan has breached any of the terms and conditions set forth in any agreement executed        by the former Executive as a condition to receiving benefits under the Plan, including, but not        limited to, the General Release, or violation of any non-disclosure, non-competition or non-       solicitation or provisions contained in such other plans or agreements.                4.3   Clawback.  The benefits under this Plan are subject to the terms of the Company's        or any other Employer's recoupment, clawback or similar policies as may be in effect from time        to time, as well as any similar provisions of applicable law, any of which could in certain        circumstances require repayment or forfeiture of any cash or other property received under this        Plan.                                            ARTICLE 5                                  EXECUTIVE COVENANTS               5.1   Reasonableness of Restrictions.  Each Executive shall acknowledge that he or she        has had and will continue to have access to Confidential Information (as defined below), that        such Confidential Information is of economic value to the Employer, that such Confidential        Information would be of value to a competitor of the Employer in competing against the        Employer, and that it would be unfair for the Executive to exploit such Confidential Information        for the Executive’s personal benefit or for the benefit of a competitor.  Each Executive shall        further acknowledge that he or she has had and/or will have an opportunity to learn about, and        develop relationships with, customers of the Employer and that the Employer have a legitimate        interest in protecting relationships with such customers, and that it would be unfair for the        Executive to exploit information the Executive has learned about such customers and        relationships that the Executive has developed with such customers for the Executive’s personal        benefit or for the benefit of a competitor.  The Executive further acknowledges that the Employer        currently markets and sells products and services to customers throughout the world and that the        Executive’s job duties have included and/or will include contact with products that are marketed        throughout the United States or, for an Executive employed outside the United States, the        country in which the Executive is employed and that the Confidential Information to which the        Executive has had and/or and will have access to, and the Executive’s customer knowledge and        contacts and relationships, would be of value to a competitor in competing against the Employer                                                  4811-1906-7992.2  

 

               anywhere in the country in which the Executive is employed.  Accordingly, each Executive shall        acknowledge that the protections provided to the Employer in this Article 5 are reasonable and        necessary to protect the legitimate interests of the Employer and that abiding by the Executive’s        obligations under this Article 5 will not impose an undue hardship on the Executive.                5.2   Restricted Services Obligation.  For a period of two years following the end, for        whatever reason, of an Executive’s employment with the Employer, the Executive shall agree        not to directly or indirectly provide Restricted Services to any Competitor respecting its        operations in the country in which the Executive was employed.  For purposes of this Section, (i)        “Restricted Services” means services of any kind or character comparable to those the Executive        provided to the Employer during the one year period preceding the end of the Executive’s        employment with the Employer, and (ii) “Competitor” means any business located in the country        in which the Executive was employed that is engaged in the development and/or sale of any        product line or service offering that is substantially similar (and thus competitive with) to a        product line or service offering sold by the Employer for which the Executive had direct        managerial responsibility during the last year of the term of the Executive’s employment with the        Employer.  Notwithstanding the foregoing, this Section 5.2 shall not apply to an Executive        whose principal place of employment with an Employer is in the State of California.               5.3   Customer Non-Solicitation.  For a period of two years following the end, for        whatever reason, of the Executive's employment with the Employer, the Executive shall agree        not to directly or indirectly attempt to sell or otherwise provide to any Restricted Customer any        goods, products or services of the type or substantially similar to the type sold or otherwise        provided by the Employer (and thus competitive with such goods, products or services) for        which the Executive was employed during the twelve months prior to termination of the        Executive’s employment.  For purposes of this Section 5.3, “Restricted Customer” means any        individual or entity (i) for whom/which the Employer provided goods, products or services, and        (ii) with whom/which the Executive was the primary contact on behalf of the Company during        the Executive’s last twelve months of employment or about whom/which the Executive acquired        non-public information during the Executive’s last twelve months of employment that would be        of benefit to the Executive in selling or attempting to sell such goods, products or services in        competition with the Employer.               5.4   Non-Solicitation of Employees.  During the term of the Executive’s employment        with the Employer and for a period of one year thereafter, the Executive shall agree not to        directly or indirectly encourage any employee of the Employer with whom the Executive has        worked to terminate his or her employment with the Employer or solicit such an individual for        employment outside the Employer in a manner which would end or diminish that employee’s        services to the Employer.               5.5   Non-Disparagement.  During the term of the Executive’s employment with the        Employer and thereafter in perpetuity, the Executive shall not knowingly disparage, criticize, or        otherwise make derogatory statements regarding the Employer or any of its affiliates, successors,        directors, officers, customers or suppliers.  During the term of the Executive’s employment with        the Employer and thereafter in perpetuity, none of the Company, Rexnord LLC, or any other        Employer nor any of their respective officers shall knowingly disparage, criticize, or otherwise        make derogatory statements regarding the Executive.  The restrictions of this Section 5.5 shall                                                  4811-1906-7992.2  

 

               not apply to any statements that are made truthfully in response to a subpoena or other        compulsory legal process.               5.6   Non-Disclosure of Confidential Information.                 (a)  The Executive shall maintain in confidence and shall not directly, indirectly or                    otherwise, use, disseminate, disclose, publish or otherwise misappropriate, or use                    for the Executive’s benefit or the benefit of any Person, or deliver to any Person                    any Confidential Information (as defined herein) or trade secrets of the Company.                     "Confidential Information" means any document, record, notebook, computer                    program or similar repository of or containing, any confidential or proprietary                    information of or relating to the Employer, including, without limitation,                    information with respect to the Employer’s operations, processes, products,                    inventions, business practices, finances, principals, vendors, suppliers, customers,                    potential customers, marketing methods, costs, prices, contractual relationships,                    regulatory status, compensation paid to employees or other terms of employment.                     Confidential Information shall be defined to exclude information which is or                    becomes public knowledge through no fault of the Executive, or which was                    known to the Executive before the start of the Executive’s earliest relationship                    with the Employer, or which is otherwise not subject to protection under                    applicable law.  The Executive’s obligations under this Section 5.6 shall apply for                    so long as the Executive continues in the employment of the Employer and for                    two years following the termination of such employment, for whatever reason, as                    to any Confidential Information that does not constitute a trade secret under                    applicable law.  As to any Confidential Information that does constitute a trade                    secret under applicable law, the Executive shall agree that the Executive's                    obligations under this Section 5.6 shall apply for so long as the item qualifies as a                    trade secret.                (b)  The Executive is advised that he or she may not be held criminally or civilly                    liable under any federal or state trade secret law for the disclosure of a trade secret                    that is made: (i) in confidence to a federal, state, or local government official,                    either directly or indirectly, or to an attorney, and provided that such disclosure is                    solely for the purpose of reporting or investigating a suspected violation of the                    law, or (ii) in a complaint or other document filed in a lawsuit or other                    proceeding, provided that such filing is made under seal.  Additionally, in the                    event the Executive files a lawsuit against the Employer for retaliation by the                    Employer against the Executive for reporting a suspected violation of law, the                    Executive has the right to provide trade secret information to the Executive's                    attorney and use the trade secret information in the court proceeding, although the                    Executive must file any document containing the trade secret under seal and may                    do not disclose the trade secret, except pursuant to court order.               5.7   Return of Company Property.  All correspondence, drawings, manuals, letters,        notes, notebooks, reports, programs, plans, proposals, financial documents, or any other        documents concerning the Employer’s customers, business plans, marketing strategies, products        or processes, whether confidential or not, is the property of the Company (the “Company                                                  4811-1906-7992.2  

 

               Property”).  Accordingly, upon the Executive’s Termination of Employment for any reason, the        Executive shall promptly deliver to the Company all such Company Property, including any and        all copies of any such Company Property, and shall not make any notes of or relating to any        information contained in any such Company Property.  The Executive may respond to a lawful        and valid subpoena or other legal process but shall give the Company the earliest possible notice        thereof, shall, as much in advance of the return date as possible, make available to the Company        and its counsel the documents and other information sought and shall assist such counsel in        resisting or otherwise responding to such process.               5.8   Injunctive Relief.  The Executive shall acknowledge that a breach of the        covenants contained in this Article 5 will cause irreparable damage to the Company and its        goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the        remedies at law for any such breach will be inadequate.  Accordingly, the Executive shall agree        that, in the event of an actual or threatened breach of any of the covenants contained in this        Article 5, in addition to any other remedy which may be available at law or in equity, the        Company shall be entitled to specific performance and injunctive relief.  The Company        acknowledges that a breach of the Company’s covenant contained in Section 5.5 will cause        irreparable damage to the Executive, the exact amount of which will be difficult or impossible to        ascertain, and that the remedies at law for any such breach will be inadequate.  Accordingly, the        Company agrees that, in the event of an actual or threatened breach of the Company’s covenant        contained in Section 5.5, in addition to any other remedy which may be available at law or in        equity, the Executive shall be entitled to specific performance and injunctive relief.                                          ARTICLE 6                                      GENERAL RULES               6.1   Right to Withhold Taxes.  The Employer shall withhold such amounts from        payments under the Plan as it determines necessary to fulfill any country,  federal, state, or local        wage or compensation withholding requirements.               6.2   Assignment.  Benefits under the Plan may not be assigned.               6.3   Unfunded Plan.  The Employer will make all payments under the Plan, and pay all        expenses of the Plan, from its general assets.  Nothing contained in the Plan shall give any        eligible Executive any right, title or interest in any property of the Employer.               6.4   Code Section 409A.   It is intended that any amounts payable under the Plan shall        comply with the provisions of Code Section 409A and the Treasury Regulations relating thereto        so as not to subject an Executive to the payment of interest and tax penalty which may be        imposed under Code Section 409A. In furtherance of this interest, anything to the contrary herein        notwithstanding, no amounts shall be payable to an Eligible Executive before such time as such        payment fully complies with the provisions of Code Section 409A and, to the extent that any        regulations or other guidance issued under Code Section 409A after the date of this Agreement        would result in the Executive being subject to payment of interest and tax penalty under Code        Section 409A, the parties agree to amend this Agreement in order to bring this Agreement into        compliance with Code Section 409A. In addition, solely for purposes of compliance with Code        Section 409A,  Qualifying Termination shall not be deemed to have occurred for purposes of the                                                  4811-1906-7992.2  

 

               Plan unless such termination is also a separation from service (within the meaning of Treasury        Regulation Section 1.409A-1(h) (applying the 20% default post-separation limit thereunder)) as        an employee and references to a “termination” or “termination of employment” shall mean        separation from service as an employee.                6.5   Governing Laws; Other Obligations.  The provisions of the Plan shall be        construed, administered and enforced in accordance with the laws of the State of Wisconsin and        any applicable federal laws.  The obligations and restrictions set forth in this Plan are in addition        to and not in lieu of any obligations or restrictions imposed upon Executive under any other         agreement or any other law or statute including, but not limited to, any obligations Executive        may owe under any law governing trade secrets, any common law duty of loyalty, or any        fiduciary duty.  No time or geographic restriction provided above shall affect the availability or        scope of protection afforded to the Company’s trade secrets.                                          ARTICLE 7                              AMENDMENT AND TERMINATION               The Compensation Committee may modify, amend, or terminate the Plan at any time        without prior notice, and the Company's Chief Executive Officer or Chief Human Resources        Officer may also amend or modify the plan to reflect administrative or other changes that do not        have a material effect on the amount of benefits  provided under the Plan.  However, the        Company will pay or continue to pay benefits in accordance with the provisions of the Plan to        the Executives whose employment is terminated prior to any modification, amendment or        termination of the Plan.                                                 ARTICLE 8                                     ADMINISTRATION               8.1   Powers and Duties.  The Plan Administrator shall have sole authority and        discretion to administer and construe the terms of the Plan, subject to applicable requirements of        law.  Without limiting the foregoing, the Plan Administrator shall have power to:                     (a)   Provide rules and regulations for the administration of the Plan and, from                          time to time, to amend or supplement such rules and regulations;                     (b)   Construe the Plan, which construction shall be final and binding;                      (c)   Correct any defect, supply any omission, or reconcile any inconsistency in                          the Plan in such manner and to such extent as it shall deem expedient to                          effect the purpose of the Plan; and                     (d)   Delegate to such other parties as are appropriate all or any part of the                          responsibilities specifically required of the Plan Administrator under the                          terms of the Plan.               No benefits shall be paid under the Plan unless the Plan Administrator, in its sole        discretion, determines that an Eligible Executive is entitled to such benefits.                                                          4811-1906-7992.2  

 

                     8.2   Finality of Action.  Except as provided in Section 9.3, the acts and determinations        of the Compensation Committee and Company within the powers conferred by the Plan shall be        final and conclusive for all purposes of the Plan.               8.3   Claim Procedure.  An Executive who believes that he or she is entitled to benefits        under the Plan in an amount greater than what the Executive is receiving or has received may file        a claim within 12 months of his or her termination of employment for such benefits by writing        directly to the corporate offices of the Company, located in Milwaukee, Wisconsin.  Such claims        shall be referred to a person designated by the Company, who shall prepare an appropriate        written response.               Every claim that is filed timely shall be answered in writing stating whether the claim is        granted or denied.  If the claim is denied, the reasons for denial and reference to the relevant plan        provisions shall be set forth in a written notice to the claimant.  Such notice shall also describe        information necessary for the claimant to perfect an appeal and include an explanation of the        Plan’s claim appeal procedure.                            Within 90 days of notice that a claim is denied, the claimant may file a written appeal to        the Company, including any comments, statements or documents the claimant may wish to        provide.  Appeals shall be considered by the Compensation Committee or a committee of not        less than three persons designated by the Compensation Committee, none of whom shall be the        person who responded to the initial claim.  In the event the claim is denied upon appeal, the        Compensation Committee  or its designee shall set forth in writing the reasons for denial and the        relevant provisions of the Plan.                        The Company shall comply with any reasonable written request from a claimant for        documents or information relevant to this claim prior to the filing of an appeal.                                                                         * * *                                                                                                  4811-1906-7992.2

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