Document:

Exhibit 10-A

	
         

         

         

         

        

         

         

        FY11
Officer

Annual Cash

 (OAC) Incentive

Plan

         
	  

 

    	 

    	 

    

FY11 OFFICER ANNUAL CASH
INCENTIVE PLAN

 

 

PURPOSE

 

It is Donaldson Company’s philosophy to provide a total compensation
package that attracts, retains and motivates the best employees. The Incentive Plan provides variable incentive compensation for
eligible positions and is designed to reward participating employees for their contributions toward Donaldson’s achievement
of specific financial goals.

 

PLAN YEAR

 

The Plan Year coincides with Donaldson Company’s fiscal year
of August 1st through July 31st.

 

PLAN ELIGIBILITY

 

All officers are eligible for the Officer Annual Cash Incentive
Plan. Participants must work a regular full-time or regular part-time schedule during the Plan Year.

 

INCENTIVE OPPORTUNITY

 

Target incentive opportunity varies by level and position and is
expressed as a percentage of the participant’s base salary effective as of the last working day in July or last working day
in an eligible position.

 

Target incentive opportunity is as follows:

 

	•	VP’s	40%
	•	SVP’s/CFO	60%
	•	CEO	80%

 

PERFORMANCE MEASUREMENT GOALS (Metrics)

 

Goals are financial and are weighted based on importance and relevance.
Appropriate goals and goal weightings for each participant will vary based on the organization’s goals and the position’s
job responsibilities. The minimum weighting for any goal is 10%. Each year the Human Resource Committee (HR Committee) of the Board
of Directors establishes and approves the performance measurement goals for the officers eligible for this plan.

 

    	 

    	 

    

FY11 OFFICER ANNUAL CASH
INCENTIVE PLAN

 

 

The following are the specific
performance metrics for Officers with Corporate responsibility:

 

	CORPORATE PERFORMANCE METRICS
	 	0% Threshold	100% Target	150% Target	200% Target
	EPS	
        Record

        ($2.12)
	
        Plan

        ($2.38)
	+18% over Record ($2.50)	+24% over Record ($2.63)
	OI%	Plan   - 2.0%	Plan	Plan + 2.0%	N/A
	NI%	Plan – 1.5%	Plan	Plan +1.5%	N/A
	ROI	Cost of Capital	15.0%	20.0%	21.5%
	Sales	90% of Plan	Plan	110% of Plan	N/A

 

 

The following are the performance metrics for Officers with Business
Segment or Regional responsibility:

 

	BUSINESS SEGMENT AND REGIONAL PERFORMANCE METRICS
	 	0% Threshold	100% Target	150% Target	200% Target
	EPS	
        Record

        ($2.12)
	
        Plan

        ($2.38)
	+18% over Record ($2.50)	+24% over Record ($2.63)
	OI%	Plan -2.0%	Plan	Plan + 2.0%	N/A
	ROI	67% of Plan or the cost of capital, whichever is higher	Plan or straight-line interpolation if plan < cost of capital	Straight interpolation	Plan +43% or the record of past 4 years, whichever is higher
	Sales	90% of Plan	Plan	110% of Plan	NA

 

The following are the performance targets:

 

	 	CEO	CFO	Section 16 Officers	Non Section 16 Officers
	EPS	50%	40%	40%	30%
	OI%	10%	0%	20%	25%
	NI%	0%	20%	0%	0%
	Sales	20%	20%	20%	20%
	ROI	20%	20%	20%	25%

 

 

PAYOUT ELIGIBILITY

 

In order to be eligible for a payout, participants must
be:

 

	 	•	Performing at an acceptable level as determined by management and/or the HR Committee.  Participants with a Requires Improvement (RI) performance rating are not eligible under any circumstance.
	 	•	Actively employed by Donaldson on the last working day of the fiscal year.

 

    	 

    	 

    

FY11 OFFICER ANNUAL CASH
INCENTIVE PLAN

 

 

INCENTIVE PAYOUTS

 

Incentive payouts will be available no later than October 15th
following the end of the fiscal year. Payouts are subject to all applicable taxes and will be paid net of any required withholdings.
Active participants must complete all annual performance management process requirements and acknowledge their new fiscal year
goals before receiving their prior fiscal year Incentive Plan payout.

 

Officers are eligible to defer all or a portion of their incentive
payout to the Donaldson Company, Inc. Deferred Compensation 401(k) Excess Plan. This deferral election must be made at least six
months prior to the end of the performance period.

 

PAYOUT MODIFICATION

 

For the following situations, incentive payouts will be
modified or prorated based on the month of change as listed in the following table:

 

	 Month of Change	New Hire/ Rehire / Newly Eligible	Job Change – Eligible Position to Another Eligible Position	Job Change –Eligible Position to Non- Eligible Position	Retirement, LTD, Death
	Job 1	Job 2
	 August	12/12	0	12/12	0	0
	 September	11/12	0	12/12	0	0
	 October	10/12	0	12/12	0	0
	 November	9/12	3/12	9/12	4/12	4/12
	December	8/12	4/12	8/12	5/12	5/12
	January	7/12	5/12	7/12	6/12	6/12
	February	6/12	6/12	6/12	7/12	7/12
	March	5/12	7/12	5/12	8/12	8/12
	April	4/12	8/12	4/12	9/12	9/12
	May	3/12	12/12	0	10/12	10/12
	June	2/12	12/12	0	11/12	11/12
	July	0	12/12	0	12/12	12/12

 

	 	•	Job changes – incentive payout will be prorated by month of job change based on incentive opportunity and performance measurement goals defined for jobs 1 and 2.
	 	•	Terminations (for any reason other than retirement, death, or LTD) – If an employee terminates employment prior to the end of the fiscal year, no incentive is earned.  If an employee terminates after July 31st, the fiscal year’s incentive will be earned to the extent of the participant’s goal achievement.
	 	•	Other – In the case of an unusual circumstance impacting a plan participant, management and the HR Committee reserves the right to withhold or adjust an incentive payout.

 

    	 

    	 

    

FY11 OFFICER ANNUAL CASH
INCENTIVE PLAN

 

 

PLAN MODIFICATIONS

 

Donaldson Board of Directors and/or HR Committee reserves
the right to modify, amend or cancel this plan at any time in response to changing business conditions or unforeseen circumstances.
They also retain the right to make adjustments for any unusual item that has an unplanned impact on the incentive payout. Adjustments,
if any, may have either a negative or positive effect on the incentive payout earned by a participant.

 

RIGHT TO CONTINUED EMPLOYMENT

 

Nothing contained in the Incentive Plan shall be construed
to confer upon any employee the right to continued employment, or alter the company’s right to terminate his/her employment
at any time.Exhibit 10-G  

	
  

 
	
 DONALDSON COMPANY, INC.

 
	
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 
	
  (2008 Restatement)

 

As Amended and Restated Effective January 1,
2008

DONALDSON COMPANY, INC. 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(2008 Restatement)

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 1.

 	
 HISTORY AND
 PURPOSE

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.1.

 	
 History

 	
  

 	
  

 
	
  

 	
 1.2.

 	
 Purpose

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.

 	
 DEFINITIONS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1.

 	
 Account

 	
  

 	
  

 
	
  

 	
 2.2.

 	
 Actuarial
 Equivalent

 	
  

 	
  

 
	
  

 	
 2.3.

 	
 Affiliate

 	
  

 	
  

 
	
  

 	
 2.4.

 	
 Basic
 Retirement Plan Benefits

 	
  

 	
  

 
	
  

 	
 2.5.

 	
 Beneficiary

 	
  

 	
  

 
	
  

 	
 2.6.

 	
 Board

 	
  

 	
  

 
	
  

 	
 2.7.

 	
 Change of
 Control

 	
  

 	
  

 
	
  

 	
 2.8.

 	
 Code

 	
  

 	
  

 
	
  

 	
 2.9.

 	
 Committee

 	
  

 	
  

 
	
  

 	
 2.10.

 	
 Company

 	
  

 	
  

 
	
  

 	
 2.11.

 	
 Compensation

 	
  

 	
  

 
	
  

 	
 2.12.

 	
 Deferral
 Credit

 	
  

 	
  

 
	
  

 	
 2.13.

 	
 Deferred
 Compensation Plan

 	
  

 	
  

 
	
  

 	
 2.14.

 	
 Disability,
 Disabled

 	
  

 	
  

 
	
  

 	
 2.15.

 	
 Early
 Retirement Factor

 	
  

 	
  

 
	
  

 	
 2.16.

 	
 Effective
 Date

 	
  

 	
  

 
	
  

 	
 2.17.

 	
 Eligible
 Employee

 	
  

 	
  

 
	
  

 	
 2.18.

 	
 ERISA

 	
  

 	
  

 
	
  

 	
 2.19.

 	
 Final
 Average Compensation

 	
  

 	
  

 
	
  

 	
 2.20.

 	
 Participant

 	
  

 	
  

 
	
  

 	
 2.21.

 	
 Pension Plan

 	
  

 	
  

 
	
  

 	
 2.22.

 	
 Pension
 Service

 	
  

 	
  

 
	
  

 	
 2.23.

 	
 Plan

 	
  

 	
  

 
	
  

 	
 2.24.

 	
 Plan Year

 	
  

 	
  

 
	
  

 	
 2.25.

 	
 Termination
 of Employment

 	
  

 	
  

 
	
  

 	
 2.26.

 	
 Vested

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.

 	
 ELIGIBILITY
 AND PARTICIPATION

 	
  

 	
 5

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1.

 	
 Eligibility

 	
  

 	
  

 
	
  

 	
 3.2.

 	
 Commencement
 of Participation

 	
  

 	
  

 
	
  

 	
 3.3.

 	
 Termination
 of Participation

 	
  

 	
  

 
	
  

 	
 3.4.

 	
 Overriding
 Exclusion

 	
  

 	
  

 

-i-

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.

 	
 CREDITED
 AMOUNTS

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1.

 	
 Normal
 Retirement Benefit

 	
  

 	
  

 
	
  

 	
 4.2.

 	
 Early
 Retirement Benefit

 	
  

 	
  

 
	
  

 	
 4.3.

 	
 Disability
 or Death Benefit

 	
  

 	
  

 
	
  

 	
 4.4.

 	
 Vesting

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.

 	
 TIME AND
 MANNER OF PAYMENTS

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.1.

 	
 Time of
 Payment

 	
  

 	
  

 
	
  

 	
 5.2.

 	
 Manner of
 Payment

 	
  

 	
  

 
	
  

 	
 5.3.

 	
 Changes in
 Time and Manner of Payment

 	
  

 	
  

 
	
  

 	
 5.4.

 	
 Change of
 Control Distributions

 	
  

 	
  

 
	
  

 	
 5.5.

 	
 Death
 Benefit

 	
  

 	
  

 
	
  

 	
 5.6.

 	
 Beneficiary
 Designation

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.

 	
 ACCOUNT

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.1.

 	
 Participant
 Accounts

 	
  

 	
  

 
	
  

 	
 6.2.

 	
 Investment
 of Accounts

 	
  

 	
  

 
	
  

 	
 6.3.

 	
 Charges
 Against Accounts

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 7.

 	
 FUNDING

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1.

 	
 Funding

 	
  

 	
  

 
	
  

 	
 7.2.

 	
 Corporate
 Obligation

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.

 	
 FORFEITURE
 OF BENEFITS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.

 	
 ADMINISTRATION

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.1.

 	
 Authority

 	
  

 	
  

 
	
  

 	
 9.2.

 	
 Liability

 	
  

 	
  

 
	
  

 	
 9.3.

 	
 Procedures

 	
  

 	
  

 
	
  

 	
 9.4.

 	
 Claim for
 Benefits

 	
  

 	
  

 
	
  

 	
 9.5.

 	
 Claims
 Procedure

 	
  

 	
  

 
	
  

 	
  

 	
 9.5.1.          Original
 Claim

 	
  

 	
  

 
	
  

 	
  

 	
 9.5.2.          Claims
 Review Procedure

 	
  

 	
  

 
	
  

 	
  

 	
 9.5.3.          General
 Rules

 	
  

 	
  

 
	
  

 	
 9.6.

 	
 Legal Fees

 	
  

 	
  

 
	
  

 	
 9.7.

 	
 Errors in
 Computations

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.

 	
 MISCELLANEOUS

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.1.

 	
 Not an
 Employment Contract

 	
  

 	
  

 
	
  

 	
 10.2.

 	
 Nontransferability

 	
  

 	
  

 
	
  

 	
 10.3.

 	
 Tax
 Withholding

 	
  

 	
  

 
	
  

 	
 10.4.

 	
 Expenses

 	
  

 	
  

 
	
  

 	
 10.5.

 	
 Governing
 Law

 	
  

 	
  

 
	
  

 	
 10.6.

 	
 Amendment
 and Termination

 	
  

 	
  

 
	
  

 	
 10.7.

 	
 Rules of
 Interpretation

 	
  

 	
  

 

-ii-

DONALDSON COMPANY, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(2008 Restatement)

SECTION 1

HISTORY AND PURPOSE

1.1.          History.     Donaldson
Company, Inc. sponsors an unfunded, nonqualified deferred compensation for a
select group of highly compensated employees, known as the “DONALDSON COMPANY,
INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN”. The Plan, in its most current
amended and restated form, is maintained under a document effective January 1,
2005 (the “Prior Plan Statement”). Effective as of January 1, 2008, Donaldson
Company, Inc. hereby amends and restates the Plan in the manner hereinafter set
forth to (i) freeze participation and (ii) adopt miscellaneous changes
necessary in order to comply with final Treasury regulations issued under
section 409A of the Code. 

1.2.          Purpose.     The
purpose of this Plan is to enable the Company to provide supplemental
retirement benefits to a select group of management or highly compensated
employees such that the sum of the supplemental benefits, certain other
retirement benefits provided by Company, and benefits provided by prior
employers, will not be less than a predetermined portion of the employee’s
final average compensation. 

SECTION 2

DEFINITIONS

The following words and phrases shall have the following meanings,
unless a different meaning is plainly required by the context. Any masculine terminology
used in the Plan shall also include the feminine gender and the definition of
any terms in the singular shall also include the plural. 

2.1.          Account — the compensation account
established under this Plan for a Participant pursuant to Section 6.1. 

2.2.          Actuarial Equivalent — a benefit of
equivalent value computed on the basis of actuarial tables, factors and
assumptions set forth in Appendix C to the Donaldson Company, Inc. Salaried
Employees’ Pension Plan. 

2.3.          Affiliate — a business entity which is
under “common control” with the Company or which is a member of an “affiliated
service group” that includes the Company, as those terms are defined in section
414(b), (c) and (m) of the Code. A business entity shall also be treated as an
Affiliate if, and to the extent that, such treatment is required by regulations
under section 414(o) of the Code. In addition to said required treatment, the
Committee may, in its discretion, designate as an Affiliate any business entity
which is not such a “common control” or “affiliated service group” 

business entity but which is otherwise affiliated with the Company,
subject to such limitations as the Committee may impose. 

2.4.          Basic Retirement Plan Benefits — the single
lump-sum value of the benefits payable under all of the following plans,
determined as of the date of the Eligible Employee’s Termination of Employment,
death or Disability, whichever happens first (or if the value of a plan cannot
be determined as of that date, as of the valuation date for such plan that
immediately precedes or follows such Termination of Employment, death or
Disability, whichever happens first, as determined by the Committee), and
subject to the limitations, if any, set forth below: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Donaldson Company, Inc. Retirement Savings and Employee Stock
 Ownership Plan (including profit sharing and PAYSOP), taking into account
 only vested benefits attributable employer contributions; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 Donaldson Company, Inc. Salaried Employees’ Pension Plan; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 Donaldson Company, Inc. Excess Pension Plan; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Donaldson Company, Inc. Deferred Compensation and 401(k) Excess Plan,
 taking into account only benefits attributable to Company Credits; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 Donaldson Company, Inc. ESOP Restoration Plan; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 Any qualified or non-qualified retirement plan, program or
 arrangement provided by the Company or an Affiliate and not listed above,
 taking into account only vested benefits attributable to employer
 contributions; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 Any qualified or non-qualified retirement plan, program or
 arrangement provided by a prior employer, taking into account only vested
 benefits attributable to employer contributions. 

 

For purposes of paragraphs (a), (f) and (g) above, “employer
contributions” does not include pre-tax contributions to a tax-qualified
retirement plan elected by an Eligible Employee in lieu of current compensation
under a 401(k) arrangement, or any other amount contributed due to an Eligible
Employee’s election to defer compensation. If prior to the earliest of the
Eligible Employee’s Termination of Employment, death or Disability the Eligible
Employee received a distribution of any benefits that, but for the
distribution, would have been included in the Eligible Employee’s Basic Retirement
Plan Benefits, such Basic Retirement Plan Benefits shall be increased by the
amount of such distribution, plus interest thereon at a rate to be determined
by the Committee. In the event any of the foregoing plans do not provide for
payment in a single lump-sum, the benefit taken into account for purposes of
this Section 2.4 shall be the single lump-sum Actuarial Equivalent of the
benefit payable under such plan. 

2.5.          Beneficiary — any person or entity validly
designated by the Participant in accordance with Section 5 to receive the
benefits, if any, payable under the Plan with respect to the Participant after
the Participant’s death. Designated persons or entities shall not be considered
Beneficiaries until the death of the Participant. 

-2-

2.6.          Board — the Board of Directors of the
Company. 

2.7.          Change of Control — the occurrence of a
“change in the ownership,” “change in effective control,” and/or a “change in
the ownership of a substantial portion of the assets,” as defined under
Treasury Regulation § 1.409A 3(i)(5), of the Affected Corporation. For this
purpose, the “Affected Corporation” is the Participant’s employer, or any
corporation (including the Company) in a chain of corporations in which each
corporation is a majority shareholder of another corporation in the chain,
ending with the Participant’s employer. A “majority shareholder” is a
shareholder owning more than 50 percent of the total fair market value and
total voting power of such corporation. 

2.8.          Code — the Internal Revenue Code of 1986,
including applicable regulations for the specified section of the Code. Any
reference in this Plan Statement to a section of the Code, including the
applicable regulation, shall be considered also to mean and refer to any
subsequent amendment or replacement of that section or regulation. 

2.9.          Committee — the Human Resources Committee
of the Board of Directors of the Company. 

2.10.        Company — Donaldson Company, Inc. and,
except in determining under Section 2.7 hereof whether or not any Change of
Control has occurred, shall include any successor by merger, purchase or
otherwise. 

2.11.        Compensation — the amount of remuneration
paid to an Eligible Employee that was treated as “Compensation” within the
meaning of the Donaldson Company, Inc. Excess Pension Plan (modified as
described in subsections (a) and (b) of Section 4.2 of such plan), subject,
however to the following: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 annual
 bonuses shall be included in the year they are earned, not the year they are
 paid; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 amounts paid under a non-qualified plan of deferred compensation
 shall not be included (e.g., payments of deferred salary or bonus). 

 

2.12.        Deferral Credit — any amount credited to an
Eligible Employee under Section 4.1, 4.2 or 4.3 of the Deferred Compensation
Plan. 

2.13.        Deferred Compensation Plan — the
nonqualified deferred compensation plan known as the “Donaldson Company, Inc.
Deferred Compensation and 401(k) Excess Plan,” as amended from time to time. 

2.14.        Disability, Disabled — a physical or mental
impairment which constitutes total and permanent disability and during which
the Eligible Employee is not receiving any payments of an Early Retirement
Pension or a Vested Benefit under the Pension Plan, and the Eligible Employee
either: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 is, by
 reason of any medically determinable physical or mental impairment which can
 be expected to result in death or can be expected to last for a 

 

-3-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 continuous period of not less than twelve (12) months, receiving
 income replacement benefits for a period of not less than three (3) months
 under an accident and health plan covering employees of the Company; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 is eligible to receive and is actually receiving (after the
 applicable waiting period) benefits under the federal Social Security Act as
 in effect at the time of the Disability. 

 

Notwithstanding the foregoing, the terms Disability and Disabled shall
at all times be interpreted in a manner so as not to violate section 409A of the
Internal Revenue Code. 

2.15.        Early Retirement Factor — a one-sixth of
one percent reduction for each month, or portion thereof, that the
Participant’s Termination of Employment precedes the Participant’s attainment
of age 62. 

2.16.        Effective Date — the amended and restated
Plan document as set forth herein is effective as of January 1, 2008. 

2.17.        Eligible Employee — any senior officer of
the Company who meets all of the requirements of Section 3.1. 

2.18.        ERISA — the Employee Retirement Income
Security Act of 1974, including applicable regulations for the specified
section of ERISA. Any reference in this Plan to a section of ERISA, including
the applicable regulation, shall be considered also to mean and refer to any
subsequent amendment or replacement of that section or regulation. 

2.19.        Final Average Compensation — the
Participant’s average annual Compensation for the highest three consecutive
Plan Years out of the most recent ten Plan Years, ending with the Plan Year in
which the earliest of the Participant’s Termination of Employment, death or
Disability, occurs. 

2.20.        Participant — an Eligible Employee or a
former Eligible Employee who has not received all of the benefits to which he
or she is entitled under this Plan. 

2.21.        Pension Plan — the tax-qualified pension
plan known as the “Donaldson Company, Inc. Salaried Employees’ Pension Plan
(1997 Restatement),” as amended from time to time. 

2.22.        Pension Service — the Participant’s
“Benefit Service” as defined in the Pension Plan. 

2.23.        Plan — the Donaldson Company, Inc.
Supplemental Executive Retirement Plan as set forth herein, and as the same may
be amended from time to time. 

2.24.        Plan Year — the twelve (12) consecutive month
period ending on any July 31. 

2.25.        Termination of Employment — the separation
from service (within the meaning of Treas. Regs. § 1.409A-1(h)) with the
Company Controlled Group, voluntarily or involuntarily, for any reason other
than Disability or death. Whether a separation from service has occurred is
determined under section 409A of the Code and Treasury Regulation 1.409A-1(h) (i.e., whether the 

-4-

facts and circumstances indicate that the employer and the employee
reasonably anticipated that no further services would be performed after a
certain date or that the level of bona fide services the employee would perform
after such date (whether as an employee or independent contractor) would
permanently decrease to no more than twenty percent (20%) of the average level
of bona fide services performed (whether as an employee or an independent
contractor) over the immediately preceding thirty-six (36) month period (or the
full period of services to the employer if the employee has been providing
services to the employer less than thirty-six (36) months)). Separation from
service shall not be deemed to occur while the employee is on military leave,
sick leave or other bona fide leave of absence if the period does not exceed
six (6) months or, if longer, so long as the employee retains a right to
reemployment with any member of the Company Controlled Group under an
applicable statute or by contract. For this purpose, a leave is bona fide only
if, and so long as, there is a reasonable expectation that the employee will
return to perform services for any member of the Company Controlled Group.
Notwithstanding the foregoing, a twenty-nine (29) month period of absence will
be substituted for such six (6) month period if the leave is due to any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of no less than six
(6) months and that causes the employee to be unable to perform the duties of
his or her position of employment. For this purpose, the “Company Controlled
Group” is the Participant’s employer and all persons with whom the employer
would be considered a single employer under Code sections 414(b) and 414(c);
provided that, in applying Code sections 1563(a)(1), (2) and (3) for purposes
of determining a controlled group of corporations under Code section 414(b),
the language “at least 50 percent” shall be used instead of “at least 80
percent” each place it appears therein, and in applying Treas. Regs. § 1.414(c)-2
for purposes of determining trades or businesses that are under common control
for purposes of Code section 414(c), “at least 50 percent” shall be used
instead of “at least 80 percent” each place it appears therein. 

2.26.        Vested — nonforfeitable. 

SECTION 3

ELIGIBILITY AND PARTICIPATION

3.1.          Eligibility. Effective January 1, 2008, no
new Participants shall be permitted to participate in the Plan. Any senior
officer of the Company who was affirmatively selected as an Eligible Employee by
the Committee prior to January 1, 2008 may continue to participate in the Plan.
Committee selections shall continue in effect until rescinded by the Committee.
The Committee may rescind its selection and thereby discontinue a senior
officer’s active participation in the Plan at any time. If any amendment or
restatement of the Plan increases the cost of the benefits payable to a senior
officer, the senior officer’s selection will be deemed rescinded immediately
prior to the effective date of the amendment or restatement, unless
reauthorized by the Committee or its delegate. If a senior officer’s selection
is rescinded (or deemed rescinded), the benefit, if any, provided by this Plan
shall be calculated pursuant to the terms of the Plan in effect when the rescission
(or deemed rescission) took effect, using only the Participant’s compensation
through that time, but calculating any offset for other benefits using the
amount of such other benefits at the time of the person’s actual Termination of
Employment. In connection with an Eligible Employee’s commencement of
participation in the Plan, the Eligible Employee shall have 

-5-

elected the time and form of payment of such Participant’s Account as
permitted under Section 5, along with such other elections as the Committee
deems necessary or desirable under the Plan. For these elections to be valid,
the election form must have been completed and timely delivered to the
Committee and accepted by the Committee within thirty (30) days after the
Participant first became eligible to participate in the Plan. 

3.2.          Commencement of Participation. Effective
January 1, 2008, no new Participants shall be permitted to participate in the
Plan. An Eligible Employees who became a Participant in the Plan prior to
January 1, 2008 commenced participation when the Eligible Employee was first
affirmatively selected as required by Section 3.1. 

3.3.          Termination of Participation. A person
shall cease to be a Participant as soon as all amounts payable to the
Participant have been paid in full. 

3.4.          Overriding Exclusion. Notwithstanding
anything apparently to the contrary in this Plan or in any written
communication, summary, resolution or document or oral communication, no
individual shall be a Participant in this Plan, develop benefits under this
Plan or be entitled to receive benefits under this Plan (either for the
employee or his or her survivors) unless such individual is a member of a
select group of management or highly compensated employees (as that expression
is used in ERISA). If a court of competent jurisdiction, any representative of
the U.S. Department of Labor or any other governmental, regulatory or similar
body makes any direct or indirect, formal or informal, determination that an
individual is not a member of a select group of management or highly
compensated employees (as that expression is used in ERISA), such individual
shall not be (and shall not have ever been) a Participant in this Plan at any
time. If any person not so defined has been erroneously treated as a
Participant in this Plan, upon discovery of such error such person’s erroneous
participation shall immediately terminate ab initio and upon
demand such person shall be obligated to reimburse the Company for all amounts
erroneously paid to him or her. 

SECTION 4

CREDITED AMOUNTS

4.1.          Normal Retirement Benefit. A Participant
whose Termination of Employment occurs on or after the date the Participant
attains age 62 and completes at least ten (10) years of Pension Service shall be
credited with a Normal Retirement Benefit equal to (a) minus (b): 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the product
 of (i), (ii) and (iii): 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 30%; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 Years of
 Pension Service, limited to twenty (20); and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 Final
 Average Compensation 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the lump-sum
 value of the Participant’s Basic Retirement Plan Benefits. 

 

-6-

4.2.          Early Retirement Benefit. A Participant
whose Termination of Employment occurs after the Participant has completed at
least fifteen (15) years of Pension Service and attained age 55, but before the
date the Participant attains age 62 shall, in lieu of any other benefit under
this Plan, be credited with an Early Retirement Benefit equal to the amount
determined in the same manner as provided in Section 4.1 above, except that the
product in Section 4.1(a) will include a fourth factor: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 Early
 Retirement Factor

 

(Example: If a Participant retires early at age 60, the product in
Section 4.1(a) would be further multiplied by .96.) 

4.3.          Disability or Death Benefit. A Participant
who becomes Disabled prior to his or her Termination of Employment and after
completing at least fifteen (15) years of Pension Service and before the date
he or she attains age 62, or who dies prior to both the Participant’s Termination
of Employment and Disability, shall, in lieu of any other benefit under this
Plan, be credited with a Disability or Death Benefit equal to the amount
determined in the same manner as provided in Section 4.2, taking into account
only Pension Service through the date of Disability or death, and determining
the Early Retirement Factor based on the amount, if any, by which the
Participant’s Disability or death precedes the Participant’s attainment of age
62. 

4.4.          Vesting. The applicable amount determined
in accordance with this Section 4 shall be credited to the Participant’s
Account at the time of the Participant’s Termination of Employment, death or
Disability, as applicable. Subject to the forfeiture provisions of Section 8,
any Account established for a Participant under this Plan shall be 100% Vested
at all times. 

SECTION 5

TIME AND MANNER OF PAYMENTS

5.1.          Time of Payment. Payment of a Participant’s
Account under the Plan will commence as soon as administratively feasible after
(but not later than December 31 of the Plan Year in which occurs, or if later,
sixty (60) days following) the earliest of the following events: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the
 Participant’s death; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the
 Participant’s Disability; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the date that is twenty four (24) months following the Participant’s
 Termination of Employment; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 a date of distribution selected by the Participant (at the time the
 Participant first becomes eligible to participate, on a form prescribed by
 the Committee), which may be a date that is a specified number of months
 after the Participant’s Termination of Employment (not to exceed twenty four
 (24) months); provided, however, that where payment under this paragraph
 (d)(ii) is made to any “specified employee” (as defined under section 409A of
 the 

 

-7-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Code) on account of Termination of Employment, such payment shall
 commence no earlier than six (6) months following a Termination of Employment
 (or upon the death of the employee, if earlier) if required to comply with
 section 409A of the Code. 

 
	
  

 	
  

 	
  

 
	
 5.2.          Manner of Payment. A Participant’s
 Account shall be paid in cash to the Participant in either a single lump-sum
 payment or in annual installments over a period of not more than twenty (20)
 years. The Participant must elect a manner of payment at the time the
 Participant elects his or her date of distribution pursuant to Section
 5.1(d). Notwithstanding the foregoing, the following special rules shall
 apply:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in the case of the Participant’s death or Disability, payment shall
 be in a single lump sum; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 if the Participant’s Account upon commencement of distribution under
 Section 5.1 is less then Ten Thousand Dollars ($10,000), payment shall be in
 a single lump sum; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 in the event no election was made by the Participant, payment shall
 be in a single lump sum. 

 
	
  

 	
  

 	
  

 
	
 5.3.          Changes in Time and Manner of Payment.
 Notwithstanding the foregoing, a Participant who is actively employed by the
 Company may make a new election concerning selection of the time and form of
 payment authorized pursuant to this Section 5.3, subject to the following
 limitations: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Such election must be submitted to and accepted by the Committee at
 least twelve (12) months prior to the date a distribution to the Participant
 would otherwise have been made or commenced; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 The election shall have no effect until at least twelve (12) months
 after the date on which the election is made; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The election may change the time when payment shall commence but only
 if the new date selected by the Participant for commencement shall be a date
 that is at least five (5) years from the prior date of distribution selected
 by the Participant; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 The election may reduce or extend the number of installment payments
 (subject to the limitations in Section 5.2) so long as the initial
 installment is delayed at least five (5) years from the date distribution
 would have otherwise commenced; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 If the participant changes the time and/or form of payment under this
 Section 5.3, payment shall commence as soon as administratively feasible
 after (but not later than December 31 of the Plan Year in which occurs, or if
 later, sixty (60) days following) the earliest of the following events: 

 

-8-

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the Participant’s
 death; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the
 Participant’s Disability; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 the new date
 selected by the Participant for commencement. 

 

5.4.          Change of Control Distributions.
Notwithstanding any other provision of this Plan, in the event of a Change of
Control, each Participant who incurs a Termination of Employment with the
Company for any reason during the two (2) year period following such Change of
Control shall receive within ten (10) business days after the date of
termination a lump sum payment of the entire balance contained in the
Participant’s Account; provided, however, that with respect to any Participant
who separated from service before the date of a Change of Control, the balance
of the Participant’s Account shall be paid at the time and in the manner as
elected by the Participant under this Section 5 hereof (and shall not be
commuted to a lump sum or otherwise accelerated by the Change of Control).
Where payment under this Section 5.4 is made to any “specified employee” (as
defined under section 409A of the Code) on account of Termination of
Employment, such payment shall commence no earlier than six (6) months
following a Termination of Employment (or upon the death of the employee, if
earlier) if required to comply with section 409A of the Code. 

5.5.          Death Benefit. In the event of a
Participant’s death, the Company shall pay the amount of the Participant’s
Account as of the date of death (as adjusted from time to time pursuant to
Section 6.2) in a lump-sum to the Participant’s designated Beneficiary as soon
as administratively feasible after the Participant’s death (but not later than
December 31 of the Plan Year in which the Participant’s death occurs, or if
later, sixty (60) days following such death). Payment to a Participant’s
designated Beneficiary shall be in cash. 

5.6.          Beneficiary Designation. A Participant
shall submit to the Company upon initial designation as an Eligible Employee in
the Plan, and at such other times as the Participant desires, on a form provided
by the Committee, a written designation of the beneficiary or beneficiaries to
whom payment of the Participant’s Account under the Plan shall be made in the
event of the Participant’s death. Beneficiary designations shall become
effective only when received by the Company. Beneficiary designations first
received by the Company after the Participant’s death, and any designations in
effect at the time a valid subsequent designation is received by the Company,
shall be invalid and have no effect. If a Participant has not designated a
Beneficiary, or if no designated Beneficiary is living on the date of
distribution, the Participant’s Account shall be distributed to those persons
entitled to receive distribution of the Participant’s benefit under the Donaldson
Company, Inc. Salaried Employees’ Pension Plan (1997 Restatement), as amended
from time to time. 

-9-

SECTION 6

ACCOUNT

6.1.          Participant Accounts. The Committee shall
cause a bookkeeping account to be kept in the name of each Participant which
shall reflect the value of the Normal Retirement Benefit, Early Retirement
Benefit, Disability or death benefit credited to the Participant at the time of
the Participant’s Termination of Employment, death or Disability, whichever
applies. 

6.2.          Investment of Accounts. When the manner of
payment is annual installments, the Participant’s Account will be adjusted as
of the last day of each Plan Year to the same extent that an equal amount would
be adjusted if it had been credited to the subfund under the Deferred
Compensation Plan that provides a fixed rate of return. 

6.3.          Charges Against Accounts. There shall be
charged against each Participant’s bookkeeping account any payments made to the
Participant or the Participant’s Beneficiary in accordance with Section 5. 

SECTION 7

FUNDING

7.1.          Funding. The Company and its Affiliates
shall be responsible for paying all benefits due hereunder. For the purpose of
facilitating the payment of benefits due hereunder, the Company may (but shall
not be required to) establish and maintain a grantor trust pursuant to an
Agreement between the Company and a trustee selected by the Company; provided,
however, that any such grantor trust must be structured so that it does not
result in any federal income tax consequences to any Participant until
distributions under Section 5 are actually received. The Company may contribute
to a grantor trust thereby created such amounts as it may from time to time
determine. 

7.2.          Corporate Obligation. Neither the officers
nor any member of the Board of Directors of the Company or any of its
Affiliates in any way secures or guarantees the payment of any benefit or
amount which may become due and payable hereunder to or with respect to any
Participant. Each Participant and other person entitled at anytime to payments
hereunder shall look solely to the assets of the Company and its Affiliates for
such payments as an unsecured, general creditor. Nothing herein shall be
construed to give a Participant, Beneficiary or any other person or persons any
right, title, interest or claim in or to any specific asset, fund, reserve,
account or property of any kind whatsoever owned by the Company or in which it
may have any right, title or interest now or in the future. After benefits
shall have been paid to or with respect to a Participant and such payment
purports to cover in full the benefit hereunder, such former Participant or
other person or persons, as the case may be, shall have no further right or
interest in the other assets of the Company and its Affiliates in connection
with this Plan. 

-10-

SECTION 8

FORFEITURE OF BENEFITS

All unpaid benefits under this Plan shall be permanently forfeited if
the Committee determines that the Participant, either before or after the
Participant’s Termination of Employment or Disability, or before the
Participant’s death: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 engaged in
 criminal or fraudulent conduct resulting in a hardship to the Company or an
 Affiliate; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 breached the
 Participant’s written employment agreement with the Company or an Affiliate. 

 

SECTION 9

ADMINISTRATION

9.1.          Authority. The Plan shall be administered
by the Committee, which shall have full discretionary power and authority to
administer and interpret the Plan and to determine all factual and legal
questions under the Plan, including but not limited to the entitlement of
Participants and Beneficiaries, and the amount of their respective interests.
Except where necessary to comply with applicable corporate or securities law,
or applicable rules of the New York Stock Exchange (e.g., with respect to
executive officers), the Committee may delegate or redelegate to one or more
persons, jointly or severally, and whether or not such persons are members of
the committee or employees of the Company, such functions assigned to the
Committee hereunder as it may from time to time deem advisable. Until withdrawn
or redelegated by the Committee, all of the Committee’s delegable power and
authority under this Section 9.1 shall be deemed delegated to the Company’s
Vice President in charge of executive compensation, excluding only the power
and authority to act in such a way as would materially increase the cost of the
Plan. 

9.2.          Liability. No member of the Committee and
no director or member of the management of the Company or its Affiliates shall
be liable to any persons for any actions taken under the Plan, or for any
failure to effect any of the objective or purposes of the Plan, by reason of
insolvency or otherwise. 

9.3.          Procedures. The Committee may from time to
time adopt such rules and procedures as it deems appropriate to assist in the
administration of the Plan. 

9.4.          Claim for Benefits. No employee or other
person shall have any claim or right to payment of any amount hereunder until
payment has been authorized and directed by the Committee. 

9.5.          Claims Procedure. Until modified by the
Committee, the claims procedure set forth in this Section 9.5 shall be the
claims procedure for the resolution of disputes and disposition of claims
arising under the Plan. 

-11-

                 9.5.1.          Original Claim. Any employee, former
employee, or Beneficiary of such employee or former employee may, if the
employee, former employee or Beneficiary so desires, file with the Committee a
written claim for benefits under the Plan. Within ninety (90) days after the
filing of such a claim, the Committee shall notify the claimant in writing
whether the claim is upheld or denied in whole or in part or shall furnish the
claimant a written notice describing specific special circumstances requiring a
specified amount of additional time (but not more than one hundred eighty (180)
days from the date the claim was filed) to reach a decision on the claim. If
the claim is denied in whole or in part, the Committee shall state in writing: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the specific reasons for the denial; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the specific references to the pertinent provisions of this Plan on
 which the denial is based; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 a description of any additional material or information necessary for
 the claimant to perfect the claim and an explanation of why such material or
 information is necessary; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 an explanation of the claims review procedure set forth in this
 Section. 

 

                 9.5.2.          Claims Review Procedure. Within sixty (60)
days after receipt of notice that the claim has been denied in whole or in
part, the claimant may file with the Committee a written request for a review
and may, in conjunction therewith, submit written issues and comments. Within
sixty (60) days after the filing of such a request for review, the Committee
shall notify the claimant in writing whether, upon review, the claim was upheld
or denied in whole or in part or shall furnish the claimant a written notice
describing specific special circumstances requiring a specified amount of
additional time (but not more than one hundred twenty days (120) from the date
the request for review was filed) to reach a decision on the request for
review. 

                 9.5.3.          General Rules. 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 No inquiry or question shall be deemed to be a claim or a request for
 a review of a denied claim unless made in accordance with the claims
 procedure. The Committee may require that any claim for benefits and any
 request for a review of a denied claim be filed on forms to be furnished by
 the Committee upon request. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 All decisions on original claims shall be made by the Committee and
 requests for a review of denied claims shall be made by the Committee. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The Committee may, in its discretion, hold one or more hearings on a
 claim or a request for a review of a denied claim. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 Claimants may be represented by a lawyer or other representative at
 their own expense, but the Committee reserves the right to require the
 claimant to furnish written authorization. A claimant’s representative shall
 be entitled to copies of all notices given to the claimant. 

 

-12-

	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 The decision of the Committee on an original claim or on a request
 for a review of a denied claim shall be served on the claimant in writing. If
 a decision or notice is not received by a claimant within the time specified,
 the claim or request for a review of a denied claim shall be deemed to have
 been denied. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 Prior to filing a claim or a request for a review of a denied claim,
 the claimant or the claimant’s representative shall have a reasonable
 opportunity to review a copy of this Plan Statement and all other pertinent
 documents in the possession of the Company and its Affiliates. 

 

9.6.          Legal Fees. If the Company does not pay the
benefits required under the terms of the Plan for reasons other than the
insolvency of the Company, the Company agrees to reimburse any Participant for
all legal fees incurred in enforcing his or her claim to benefits under the
Plan. Notwithstanding the foregoing, to the extent required to comply with the
provisions of section 409A of the Code, no reimbursement of expenses incurred
by the Participant during any taxable year shall be made after the last day of
the following taxable year. 

9.7.          Errors in Computations. The Committee shall
not be liable or responsible for any error in the computation of any benefit
payable to or with respect to any Participant resulting from any misstatement
of fact made by the Participant or by or on behalf of any Beneficiary to whom
such benefit shall be payable, directly or indirectly, to the Committee, and
used by the Committee in determining the benefit. The Committee shall not be
obligated or required to increase the benefit payable to or with respect to
such Participant which, on discovery of the misstatement, is found to be
understated as a result of such misstatement of the Participant. However, the
benefit of any Participant which is overstated by reason of any such
misstatement or any other reason shall be reduced to the amount appropriate in
view of the truth (and to recover any prior overpayment). 

SECTION 10

MISCELLANEOUS

10.1.        Not an Employment Contract. This Plan is
not and shall not be deemed to constitute a contract of employment between the
Company and any employee or other person, nor shall anything herein contained
be deemed to give any employee or other person any right to be retained in the
Company’s employ or in any way limit or restrict the Company’s right or power
to discharge any employee or other person at any time and to treat him without
regard to the effect which such treatment might have upon the employee as a
Participant in the Plan. 

10.2.        Nontransferability. A Participant’s rights
and interest under the Plan, including amounts payable, may not be assigned,
alienated, pledged or transferred except, in the event of a Participant’s death
to his Beneficiary. No benefit payable under this Plan shall be subject to
attachment, garnishment, execution following judgment or other legal process
before actual payment to the Participant or Beneficiary. 

-13-

10.3.        Tax Withholding. The Company shall withhold
the amount of any federal, state or local income tax or other tax required to
be withheld by the Company under applicable law with respect to any amount
payable under the Plan. The Participant shall not be liable for any tax
withholding. 

10.4.        Expenses. All expenses of administering the
Plan shall be borne by the Company. 

10.5.        Governing Law. Except to the extent that
federal law is controlling, the Plan shall be construed and enforced in
accordance with and governed by the laws of the State of Minnesota. 

10.6.        Amendment and Termination. The Company
reserves the power to unilaterally amend this Plan at any time, either
prospectively or retroactively or both by action of the Committee. The
Committee may likewise terminate or curtail the benefits of this Plan both with
regard to persons expecting to receive benefits in the future and persons
already receiving benefits at the time of such action; provided, however, that
the Committee may not amend or terminate the Plan with respect to benefits that
have accrued and are vested pursuant to Section 4 in any manner that reduces
the amount of such benefits or alters the effect of any Participant election
previously filed with the Company. No modification of the terms of this Plan
shall be effective unless it is in writing and signed on behalf of the Company
by a person authorized to execute such writing. No oral representation
concerning the interpretation or effect of this Plan shall be effective to
amend the Plan. To the extent permissible under section 409A of the Code and
related Treasury regulations and guidance, including but not limited to such
guidance and regulations as may be issued after the effective date of this
Plan, if there is a termination of the Plan, the Company shall have the right,
in its sole discretion, and notwithstanding any elections made by the
Participant, to pay all benefits in a lump sum following such termination as
soon as practicable subject to the limitations prescribed under section 409A of
the Code and the regulations thereunder. 

10.7.        Rules of Interpretation. The titles given
to the various sections of this Plan are inserted for convenience of reference
only and are not part of this Plan, and they shall not be considered in
determining the purpose, meaning or intent of any provision hereof. This Plan shall
be construed and this Plan shall be administered to create an unfunded plan
providing deferred compensation to a select group of management or highly
compensated employees so that it is exempt from the requirements of Parts 2, 3
and 4 of Title I of ERISA and qualifies for a form of simplified, alternative
compliance with the reporting and disclosure requirements of Part 1 of Title I
of ERISA. 

-14-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]