Document:

EX-10.2

 

Exhibit 10.2

THE TIMKEN COMPANY

Performance Unit Agreement

          WHEREAS, <<first>> <<last>> (“Grantee”) is an employee of The Timken
Company (the “Company”); and

          WHEREAS, the grant of Performance Units, each with a cash value of $100.00, was authorized by
a resolution of the Compensation Committee (the “Committee”) of the Board of Directors of the
Company (the “Board”) that was duly adopted on [DATE] (the “Date of Grant”), and the execution of a
Performance Unit agreement in the form hereof was authorized by a resolution of the Committee duly
adopted on [DATE];

          NOW, THEREFORE, pursuant to the Company’s Long-Term Incentive Plan (As Amended and Restated as
of February 6, 2004) (the “Plan”) and subject to the terms and conditions thereof and the terms and
conditions hereinafter set forth, the Company hereby grants to Grantee as of the Date of Grant
<<puaward>> Performance Units (the “Target Performance Units”). Subject to the
attainment of the performance goals set forth in Section 1 hereof, this grant enables Grantee to
earn as Performance Units from [50% to 150%] of the Target Performance Units to be paid out to
Grantee pursuant to Section 4 of this agreement (this “Agreement”).

     1. Earning of Target Performance Units. (a) Grantee’s right to receive payment for
any Performance Units shall be determined (i) on the basis of the Management Objective or
Management Objectives of the Company set forth in the Performance Matrix approved by the Committee
on the Date of the Grant (“the Performance Matrix”) for the
period from January 1, 2___ through
December 31, 2___ (the “Performance Period”) as follows:

	 	(i)	 	The applicable percentage of the Target Performance Units which
shall be earned by Grantee shall be determined by the Performance Matrix.

 

 

	 	(ii)	 	In the event that one or more of the Management Objectives of
the Company is between the ranges set forth on the Performance Matrix, the
Committee shall interpolate the applicable percentage of the Target Performance
Units which shall be earned by Grantee.

          (b) If the Committee determines that a change in the business, operations, corporate structure
or capital structure of the Corporation, the manner in which it conducts business or other events
or circumstances render the Management Objectives to be unsuitable, the Committee may modify such
Management Objectives or the related minimum acceptable level of achievement, in whole or in part,
as the Committee deems appropriate; provided, however, that no such action may
result in the loss of the otherwise available exemption of the award under Section 162(m) of the
Code.

          (c) All determinations involving the performance goals set forth in this Section 1 shall be
calculated based on Generally Accepted Accounting Principles in effect at the time the goals are
established without regard to any change in accounting standards that may be required by the
Financial Accounting Standards Board after the goals are established.

          (d) Subject to Sections 1(a), (b), and (c), Grantee shall have a right to receive payment for
the Target Performance Units if Grantee is in the continuous employ of the Company or a subsidiary
from the Date of Grant through the last day of the Performance Period. For purposes of this
Agreement, Grantee’s continuous employment with the Company or a subsidiary shall not be deemed to
have been interrupted, and Grantee shall not be deemed to have ceased to be an employee of the
Company or a subsidiary, by reason of transfer of employment among the Company and its
subsidiaries.

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     2. Pro Rata Earning of Target Performance Units. Notwithstanding Section 1(d) hereof
and subject to the payment provisions of Section 4(b) hereof, Grantee shall be entitled to receive
payment of a prorated portion of the Performance Units based on the number of whole months that
Grantee was employed by the Company or any subsidiary during the Performance Period on the date
Grantee ceases to be an employee of the Company or any subsidiary prior to the last day of the
Performance Period as the result of one of the following circumstances:

          (a) Death, Disability or Retirement: Grantee dies or becomes permanently disabled
while in the employ of the Company or any subsidiary, or Grantee retires with the Company’s
consent. For purposes of this Agreement, retirement “with the Company’s consent” shall mean: (i)
the retirement of Grantee prior to age 62 under a retirement plan of the Company or a subsidiary,
if the Board or the Committee determines that his retirement is for the convenience of the Company
or a subsidiary, or (ii) the retirement of Grantee at or after age 62 under a retirement plan of
the Company or a subsidiary. For purposes of this Agreement, “permanently disabled” shall mean
that Grantee has qualified for long-term disability benefits under a disability plan or program of
the Company or, in the absence of a disability plan or program of the Company, under a
government-sponsored disability program.

          (b) Change in Control: A change in control of the Company occurs while Grantee is an
employee of the Company or a subsidiary. For the purposes of this Agreement, the term “change in
control” shall mean the occurrence of any of the following events:

	 	(i)	 	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)
(a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act of 1934) of 30% or more

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	 		 	of either: (A) the then-outstanding Common Shares or (B) the combined
voting power of the then-outstanding voting securities of the Company
entitled to vote generally in the election of directors (“Voting Shares”);
provided, however, that for purposes of this subsection (i), 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 Subsidiary, or (4) any acquisition by any
Person pursuant to a transaction which complies with clauses (A), (B) and
(C) of subsection (i) of this Section 2(b); or
	 
	 	(ii)	 	Individuals who, as of the date hereof, constitute the Board
(the “Incumbent Board”) cease for any reason (other than death or disability)
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 shareholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board
(either by a specific vote or by approval of the proxy statement of the Company
in which such person is named as a nominee for director, without objection to
such nomination) 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 (within the meaning of Rule 14a-11 of the Securities Exchange
Act of

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	 		 	1934) 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; or
	 
	 	(iii)	 	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, (A) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Common Shares and
Voting Shares immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 66-2/3% 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 entity resulting from such Business
Combination (including, without limitation, an entity which as a 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 relative to each other as their ownership, immediately
prior to such Business Combination, of the Common Shares and Voting Shares of
the Company, as the case may be, (B) no Person (excluding any entity resulting
from such Business Combination or any employee benefit plan (or related trust)
sponsored or maintained by the Company or such entity resulting from such
Business Combination) beneficially owns, directly or

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	 	 	 	indirectly, 30% or more of, respectively, the then-outstanding shares of
common stock of the entity resulting from such Business Combination, or the
combined voting power of the then-outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the
Business Combination, and (C) 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
	 
	 	(iv)	 	Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

          (c) Divestiture: Grantee’s employment with the Company or a subsidiary terminates as
the result of a divestiture. For the purposes of this Agreement, the term “divestiture” shall mean
a permanent disposition to a Person other than the Company or any subsidiary of a plant or other
facility or property at which Grantee performs a majority of Grantee’s services whether such
disposition is effected by means of a sale of assets, a sale of subsidiary stock or otherwise.

          (d) Layoff: Grantee’s employment with the Company or a subsidiary terminates as the
result of a layoff. For purposes of this Agreement, a “layoff” shall mean the involuntary
termination by the Company or any subsidiary of Grantee’s employment with the Company or any
subsidiary due to (i) a reduction in force leading to a permanent downsizing of the salaried
workforce, (ii) a permanent shutdown of the plant, department or subdivision in which Grantee
works, or (iii) an elimination of position.

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     3. Forfeiture of Award. Except to the extent Grantee has earned the right to receive
payment for Performance Units pursuant to Sections 1 or 2 hereof, Grantee’s right to receive
payment for the Performance Units shall be forfeited automatically and without further notice on
the date that Grantee ceases to be an employee of the Company or a Subsidiary prior to the last day
of the Performance Period.

     4. Payment of Performance Units. (a) Performance Units earned as provided in Section
1 hereof shall be paid to Grantee in cash or Common Shares (as determined by the Committee) in the
calendar year immediately following the close of the Company’s last fiscal year to which the award
relates, but in no event later than two and one-half (2 1/2) months after the close of such fiscal
year.

          (b) The prorated portion of Performance Units earned as provided in Section 2 hereof shall be
paid to Grantee in cash or Common Shares (as determined by the Committee) in the calendar year
immediately following the last day of the Performance Period, but in no event later than two and
one-half (2 1/2) months after the close of the last fiscal year of the Company to which the award
relates.

     5. Transferability. Grantee’s right to receive the Performance Units shall not be
transferable nor assignable by Grantee other than by will or by the laws of descent and
distribution.

     6. No Employment Contract. Nothing contained in this Agreement shall confer upon
Grantee any right with respect to continuance of employment by the Company or any Subsidiary, nor
limit or affect in any manner the right of the Company or any Subsidiary to terminate the
employment or adjust the compensation of Grantee.

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     7. Taxes and Withholding. If the Performance Units are paid in cash, such payment
shall be less any applicable federal, state, local or foreign taxes. To the extent that the
Company shall be required to withhold any federal, state, local or foreign taxes in connection with
the payment of the Performance Units in Common Shares, and the amounts available to the Company for
such withholding are insufficient, it shall be a condition to the payment of the Performance Units
that Grantee shall pay such taxes or make provisions that are satisfactory to the Company for the
payment thereof.

     8. Compliance with Section 409A of the Code. To the extent applicable, it is intended
that this Agreement and the Plan comply with the provisions of Section 409A of the Code, so that
the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Grantee.
This Agreement and the Plan shall be administered in a manner consistent with this intent.
Reference to Section 409A of the Code is to Section 409A of the Internal Revenue Code of 1986, as
amended, and will also include any proposed, temporary or final regulations, or any other guidance
promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal
Revenue Service.

     9. Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable laws; provided, however, that notwithstanding any other provision of
this Agreement, the Performance Units shall not be paid if the payment thereof would result in a
violation of any such law.

     10. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto; provided, however,
that no amendment shall adversely affect the rights of Grantee under this Agreement without
Grantee’s consent (provided, however, that the Grantee’s consent shall not be
required to an

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amendment that is deemed necessary by the Company to ensure compliance with Section 409A of
the Code).

     11. Severability. In the event that one or more of the provisions of this Agreement
shall be invalidated for any reason by a court of competent jurisdiction, any provision so
invalidated shall be deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

     12. Relation to Plan. This Agreement is subject to the terms and conditions of the
Plan. In the event of any inconsistency between the provisions of this Agreement and the Plan, the
Plan shall govern. Capitalized terms used herein without definition shall have the meanings
assigned to them in the Plan. The Committee acting pursuant to the Plan, as constituted from time
to time, shall, except as expressly provided otherwise herein or in the plan, have the right to
determine any questions which arise in connection with the grant of Performance Units.

     13. Successors and Assigns. Without limiting Section 5 hereof, the provisions of this
Agreement shall inure to the benefit of, and be binding upon, the successors, administrators,
heirs, legal representatives and assigns of Grantee, and the successors and assigns of the Company.

     14. Governing Law. The interpretation, performance, and enforcement of this Agreement
shall be governed by the laws of the State of Ohio, without giving effect to the principles of
conflict of laws thereof.

     15. Notices. Any notice to the Company provided for herein shall be in writing to the
Company and any notice to Grantee shall be addressed to Grantee at his or her address on file with
the Company. Except as otherwise provided herein, any written notice shall be deemed to be duly
given if and when delivered personally or deposited in the United States mail, first class

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certified or registered mail, postage and fees prepaid, return receipt requested, and
addressed as aforesaid. Any party may change the address to which notices are to be given
hereunder by written notice to the other party as herein specified (provided that for this purpose
any mailed notice shall be deemed given on the third business day following deposit of the same in
the United States mail).

[SIGNATURES ON THE FOLLOWING PAGE]

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          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer and Grantee has also executed this Agreement in duplicate, as of the day and year first above written.

	 	 	 	 	 
	 	

THE TIMKEN COMPANY

 	 
	 	
 	 
	 	William R. Burkhart 	 
	 	Sr. Vice President and General Counsel 	 
	 

          The undersigned Grantee hereby acknowledges receipt of an executed original of this Agreement.

	 	 	 	 	 
	 	
 	 
	 	Grantee 	 

	 	 	 	 	 
	 	
 	 
	 	Date: 	 
	 	 	 
	 

11EX-10(B)

 

Exhibit 10(b)

Executive Officers of

The Scotts Miracle-Gro Company

who are parties to form of

Employee Confidentiality, Noncompetition,

Nonsolicitation Agreement for employees

participating in The Scotts Company LLC Amended and Restated

                      Executive/Management Incentive Plan                       

	 	 	 
	Name and Principal Position	 	Date of Employee Confidentiality,
	with The Scotts Miracle-Gro Company	 	Noncompetition, Nonsolicitation Agreement
	 
	 	 
	Denise S. Stump — Executive Vice President-Global Human
Resources

	 	August 8, 2006
	 
	 	 
	David C. Evans — Executive Vice President and Chief
Financial Officer

	 	May 20, 2006
	 
	 	 
	Barry W. Sanders — Executive Vice President-North America

	 	April 22, 2005
	 
	 	 
	Vincent C. Brockman — Executive Vice President, General
Counsel and Secretary

	 	April 13, 2005

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