Document:

Ex-10(X)

 

Exhibit 10(X)

Form Of Supplemental Executive Retirement Plan Agreement

Goodrich Corporation (“Goodrich”) entered into a Supplemental Executive Retirement Plan Agreement
identical to the form attached hereto with each of the following Goodrich executive officers on the
dates and having the “Benefit Service Start Dates” indicated:

	 	 	 	 	 
	Date	 	Name	 	Benefit Service Start Date
	01/01/02
	 	Marshall O. Larsen	 	12/01/95
	01/01/02
	 	Terrence G. Linnert	 	11/03/97
	01/01/02
	 	Ulrich Schmidt	 	10/01/00
	01/01/02
	 	Stephen R. Huggins	 	02/16/99
	01/01/02
	 	Jerry S. Lee	 	06/01/00
	02/22/05
	 	Jennifer Pollino	 	02/22/05
	01/01/02
	 	John J. Carmola	 	04/01/00
	04/16/02
	 	Cynthia M. Egnotovich	 	04/16/02
	01/01/02
	 	John J. Grisik	 	10/01/99

 

 

GOODRICH CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

INTRODUCTION

The purpose of this Plan is to provide additional pension benefits and supplemental retiree medical
benefits to certain executive employees of Goodrich Corporation. This Plan, currently known as the
Goodrich Corporation Supplemental Executive Retirement Plan, is hereby amended and restated as of
January 1, 2002. This restatement of the Plan reflects all prior amendments to the Plan.

I. DEFINITIONS

     1.1 “Alternative Pension Benefits” means the benefits provided pursuant to Article III of this
Plan.

     1.2 “Benefit Service Start Date” means the date specified for an Eligible Employee pursuant to
Section 2.1 of the Plan.

     1.3 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     1.4 “Company” means Goodrich Corporation.

     1.5 “Covered Compensation” means Covered Compensation as defined in the Goodrich Retirement
Plan.

     1.6 “Earnings” means the definition of compensation contained in the Goodrich Retirement Plan
with the following modifications:

(a) For purposes of this Plan, Earnings shall be increased by the amount of salary
reduction contributions made to the Goodrich Corporation Savings Benefit Restoration
Plan or the Goodrich Pump and Engine Controls, Inc. Savings Benefit Equalization
Plan; and

(b) For purposes of this Plan, Earnings shall be determined without regard to the
limitation on compensation contained in Code Section 401(a)(17).

     1.7 “Eligible Employee” means an individual (a) who is or was an employee of the Company, (b)
who is or was a participant in the Goodrich Corporation Employees’ Pension Plan or a predecessor
plan, (c) who is or has been designated as a Eligible Employee by the Board of Directors of the
Company.

 

 

     1.8 “Final Average Earnings” means the definition of average compensation contained in the
Goodrich Retirement Plan as modified by the definition of Earnings contained in this Plan.

     1.9 “Goodrich Retirement Plan” means the Goodrich Corporation Employees’ Pension Plan.

     1.10 “Plan” means this Goodrich Corporation Supplemental Executive Retirement Plan, as in
effect at any time.”

     1.11 “Retiree Medical Plan” means the Goodrich Corporation Medical and Prescription Drug Plan
for Salaried Retirees, as such plan may be amended from time to time.

     1.12 “Supplemental Retiree Medical Benefits” means the benefits provided pursuant to Article V
of this Plan.

     1.13 “Supplemental Pension Benefits” means the benefits provided pursuant to Article IV of
this Plan.

     1.14 “Years of Benefit Service” means an Eligible Employee’s Years of Benefit Service, as
determined under the Goodrich Retirement Plan. Notwithstanding the foregoing, if an Eligible
Employee receives payments after termination of employment under the terms of the Goodrich
Corporation Management Continuity Agreement, the period of service for which such payments are made
shall be credited under this Plan as Years of Benefit Service if the Eligible Employee does not
receive the equivalent of a pension benefit for such service under the Goodrich Corporation
Management Continuity Agreement.

     1.15 “Years of SERP Service” means an Eligible Employee’s period of service from the Eligible
Employee’s Benefit Service Start Date to the date the Eligible Employee terminates employment with
the Company or is no longer an Eligible Employee, using the methodology for calculating Years of
Benefit Service under the Goodrich Retirement Plan. As provided in Sections 4.2 and 4.5 of the
Plan, Years of SERP Service used to calculate Supplemental Pension Benefits shall be limited to a
maximum of 15 years, and Years of SERP Service shall be reduced, if necessary, so that the sum of
an Eligible Employee’s Years of Benefit Service and Years of SERP Service do not exceed thirty-five
years.

II. ELIGIBILITY AND BENEFITS

     2.1 An Eligible Employee shall be notified by the Company of his or her eligibility to receive
benefits under this Plan and shall be provided with a copy of the Plan which shall be signed by the
Eligible Employee and which shall specify the Eligible Employee’s Benefit Service Start Date.

     2.2 Subject to the terms and conditions contained in this Plan, an Eligible Employee shall be
entitled to receive Alternative Pension Benefits as described in Article III of the Plan,
Supplemental Pension Benefits as described in Article IV of the Plan, and Supplemental Retiree
Medical Benefits as described in Article V of the Plan.

 

 

III. ALTERNATIVE PENSION BENEFITS

     3.1 An Eligible Employee shall be entitled to receive Alternative Pension Benefits which shall
be calculated and paid in accordance with the provisions of this Article III.

     3.2 An Eligible Employee’s Alternative Pension Benefit shall be a yearly pension benefit equal
to 1.5% of the Eligible Employee’s Final Average Earnings multiplied by the Eligible Employee’s
Years of Benefit Service, plus .45% of the Eligible Employee’s Final Average Earnings in excess of
Covered Compensation multiplied by the Eligible Employee’s Years of Benefit Service up to a maximum
of 35 Years of Benefit Service.

     3.3 Notwithstanding the provisions contained in Section 3.2, an Eligible Employee’s
Alternative Pension Benefit shall be reduced by the amount of any benefit paid to the Eligible
Employee from the Goodrich Retirement Plan and/or the amount of any benefit paid to the Eligible
Employee from a benefit restoration plan or a benefit equalization plan sponsored by the Company
that provides special benefits to Eligible Employees as a result of limitations applicable to the
Goodrich Retirement Plan.

     3.4 An Eligible Employee’s Alternative Pension Benefit shall be payable, at the election of
the Eligible Employee, under any payment option which could have been elected by the Eligible
Employee under the Goodrich Retirement Plan. Notwithstanding the foregoing, if an Eligible
Employee is entitled to receive a benefit from the Goodrich Retirement Plan, any Alternative
Pension Benefit to be paid from this Plan shall be calculated using the same payment option elected
by the Eligible Employee under the Goodrich Retirement Plan. Alternative Pension Benefits shall be
actuarially adjusted in the same manner as benefits are adjusted under the Goodrich Retirement
Plan.

     3.5 Notwithstanding the provisions contained in Section 3.4, an Eligible Employee may elect to
have his or her Alternative Pension Benefits paid in a single lump sum payment. Lump sum amounts
shall be paid to the Eligible Employee 90 days after the Eligible Employee’s benefit commencement
date under the Goodrich Retirement Plan, or as soon as administratively feasible thereafter. If an
Eligible Employee is not eligible to receive a benefit from the Goodrich Retirement Plan, the lump
sum amount shall be paid to the Eligible Employee 90 days after termination of employment, or as
soon as administratively feasible thereafter. The election of a lump sum payment shall be made in
writing and may be delivered to the Committee at any time up to 30 days before the Eligible
Employee’s benefit commencement date or termination of employment. Lump sum payments shall be
calculated using an immediate annuity factor and the interest rate and mortality table specified in
the Goodrich Retirement Plan as of the valuation date. Lump sum payments shall be in lieu of all
Alternative Pension Benefits, but shall have no effect on the form, timing, or amount of any
distribution from the Goodrich Retirement Plan.

IV. SUPPLEMENTAL PENSION BENEFITS

     4.1 An Eligible Employee shall be entitled to receive Supplemental Pension Benefits which
shall be calculated and paid in accordance with the provisions of this Article IV.

     4.2 Subject to the maximum Years of Service contained in Section 4.5 of the Plan, an Eligible
Employee’s Supplemental Pension Benefit shall be a yearly pension benefit equal to

 

 

1.6% of the Eligible Employee’s Final Average Earnings multiplied by the Eligible Employee’s
Years (and partial years) of SERP Service (up to a maximum of fifteen Years of SERP Service).

     4.3 An Eligible Employee’s Supplemental Pension Benefit shall be payable, at the election of
the Eligible Employee, under any payment option which could have been elected by the Eligible
Employee under the Goodrich Retirement Plan. Notwithstanding the foregoing, if an Eligible
Employee is entitled to receive a benefit from the Goodrich Retirement Plan, any Supplemental
Pension Benefit to be paid from this Plan shall be calculated using the same payment option elected
by the Eligible Employee under the Goodrich Retirement Plan. Supplemental Pension Benefits shall
be actuarially adjusted in the same manner as benefits are adjusted under the Goodrich Retirement
Plan.

     4.4 Notwithstanding the provisions contained in Section 4.3, an Eligible Employee may elect to
have his or her Supplemental Pension Benefits paid in a single lump sum payment. Lump sum amounts
shall be paid to the Eligible Employee 90 days after the Eligible Employee’s benefit commencement
date under the Goodrich Retirement Plan, or as soon as administratively feasible thereafter. The
election of a lump sum payment shall be made in writing and may be delivered to the Committee at
any time up to 30 days before the Eligible Employee’s benefit commencement date. Lump sum payments
shall be calculated using an immediate annuity factor and the interest rate and mortality table
specified in the Goodrich Retirement Plan as of the valuation date. Lump sum payments shall be in
lieu of all Supplemental Pension Benefits, but shall have no effect on the form, timing, or amount
of any distribution from the Goodrich Retirement Plan.

     4.5 Notwithstanding any other provision of this Plan, an Eligible Employee’s Years of SERP
Service shall be reduced, if necessary, so that the sum of the Eligible Employee’s Years of Benefit
Service and Years of SERP Service do not exceed thirty-five. Notwithstanding the foregoing, this
provision of the Plan shall not apply to Eligible Employee’s who were participants in the Plan on
January 1, 2001.

V. SUPPLEMENTAL RETIREE MEDICAL BENEFITS

     5.1 An Eligible Employee and his or her eligible beneficiaries (as described in the Retiree
Medical Plan) shall be entitled to receive Supplemental Retiree Medical Benefits as provided in
this Article V, provided, however, that the provisions of this Article shall not apply to any
Eligible Employee who becomes an Eligible Employee after December 31, 2002.

     5.2 In the event and to the extent an Eligible Employee or his or her eligible beneficiaries
are not eligible to participate in or are not entitled to full benefits under the Retiree Medical
Plan following termination of employment, the Eligible Employee and his or her eligible
beneficiaries shall be entitled to Supplemental Retiree Medical Benefits equal to the full benefits
provided under the Retiree Medical Plan as in effect from time to time.

     5.3 Supplemental Retiree Medical Benefits shall be payable to the Eligible Employee and his or
her eligible beneficiaries from and after the later of the date the Eligible Employee terminates
employment with the Company, or the date Eligible Employee reaches (or in the event of death would
have reached) age 55.

 

 

VI. DEATH BENEFITS

     6.1 Except as provided in Section 6.2, if an Eligible Employee dies prior to retirement, his
or her surviving spouse shall be entitled to receive a supplemental survivor annuity under this
Plan. The amount of such supplemental survivor annuity shall be based on any Alternative Pension
Benefit and/or Supplemental Pension Benefit payable under this Plan converted to a preretirement
survivor annuity using the calculation methodology contained in the Goodrich Retirement Plan.
Supplemental Pension death benefits shall be paid at the same time and in the same form as death
benefits are paid to the surviving spouse under the Goodrich Retirement Plan. Alternative Pension
death benefits shall be paid under any form of death benefit permitted under the Goodrich
Retirement Plan, as elected by the surviving spouse.

     6.2 Notwithstanding the provisions contained in Section 6.1, if an Eligible Employee dies
after attaining age 55 and completing 5 years of vesting service, the Eligible Employee’s surviving
spouse shall receive a lump sum benefit in lieu of the death benefit provided under Section 6.1.
The lump sum benefit shall be the amount the Eligible Employee would have been entitled to receive
as a lump sum benefit if the Eligible Employee had retired on the day before his or her death.
Lump sum payments to a surviving spouse of an Eligible Employee shall be paid to the surviving
spouse 90 days after the surviving spouse’s benefit commencement date under the Goodrich Retirement
Plan, or as soon as administratively feasible thereafter.

VII. PAYMENT OF BENEFITS AND RESERVATION OF RIGHTS

     7.1 Alternative Pension Benefits, Supplemental Pension Benefits, and Supplemental Retiree
Medical Benefits payable pursuant to the provisions of this Plan shall be paid from the general
assets of the Company. Such benefits shall be paid in the same manner, and at the same time, as
such benefits would be payable if paid from the underlying Goodrich Retirement Plan or Retiree
Medical Plan.

     7.2 Nothing in this Plan shall prevent the Company from terminating or amending the Goodrich
Retirement Plan or the Retiree Medical Plan and any benefits payable from this Plan, to the extent
such benefits are determined pursuant to the provisions of the Goodrich Retirement Plan or the
Retiree Medical Plan, shall be calculated pursuant to the provisions of such plans as amended.

     7.3 The Company may amend or terminate this Plan at any time, provided, however, that any such
amendment or termination shall not reduce any Alternative Pension Benefits or Supplemental Pension
Benefits which have accrued prior to the date of such amendment or termination.

VIII. GENERAL PROVISIONS

     8.1 To the extent benefits paid under this Plan are subject to withholding under Federal,
state, and/or local law, such amounts shall be withheld from the payments due to Eligible
Employees.

     8.2 The right or interest of any person to a benefit under this Plan shall not be subject to
voluntary or involuntary alienation, assignment, or transfer of any kind.

 

 

     8.3 The establishment of this Plan shall not confer any legal right to an Eligible Employee
for continuation of employment, or interfere with the right of an Employer to discharge an Eligible
Employee or to treat an Eligible Employee without regard to the impact that such treatment may have
under this Plan.

     8.4 Except to the extent that Federal law is controlling, this Plan shall be construed and
administered in accordance with the laws of the State of North Carolina.

 

 

     Executed
by the Company this ___day of
                   
,       .

                                       

     Accepted by the Eligible Employee this    day of                    
,       .
        .

                                       

     The Benefit Service Start Date for the Eligible Employee isEx-10(BB)

 

Exhibit 10(BB)

Form Of Management Continuity Agreement

Goodrich Corporation (“Goodrich”) entered into a Management Continuity Agreement identical to the
form attached hereto with each of the following Goodrich executive officers on the dates indicated.
Each of the agreements with the executive officers provides for a “Payment Period” (as defined in
Section 3(c) of the Management Continuity Agreement) of thirty-six (36) months.

	 	 	 
	Date	 	Name
	10/18/99

	 	Marshall O. Larsen
	10/18/99

	 	Terrence G. Linnert
	10/01/00

	 	Ulrich Schmidt
	10/18/99

	 	Stephen R. Huggins
	08/01/00

	 	Jerry S. Lee
	02/22/05

	 	Jennifer Pollino
	03/27/00

	 	John J. Carmola
	05/01/02

	 	Cynthia M. Egnotovich
	03/01/02

	 	John J. Grisik
	10/18/99

	 	Scott E. Kuehcle

1

 

MANAGEMENT CONTINUITY AGREEMENT

This Agreement dated
as of this [      ]
day of [      ], 199[       ] between [       ] (the “Executive”) and The B.F.
Goodrich Company, a New York corporation (the “Company”).

     WHEREAS, the Executive and the Company desire to set forth certain compensation and benefits
that the Executive shall receive upon the happening of certain events affecting the Executive and
the Company, and

WITNESSETH:

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein contained,
the parties agree as follows:

     1. Term. This Agreement shall commence on the date hereof and shall continue until
the Date of Termination as set forth in Section 8 hereof.

     2. Period of Employment. Executive’s “Period of Employment” shall commence on the
date on which a Change in Control occurs and shall end on the date that is 24 months after the date
on which such Change in Control occurs. Notwithstanding the foregoing, however, Executive’s Period
of Employment shall not extend beyond any Mandatory Retirement Date (as hereinafter defined in
Section 3) applicable to Executive.

     3. Certain Definitions. For purposes of this Agreement:

          (a) A “Change in Control” shall mean:

               (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, as amended (the
“Exchange Act”)), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (A) the then
outstanding Shares of common stock of the Company (the “Outstanding Company Common
Stock”) or (B) 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 the following
acquisitions shall not constitute a Change of Control: (A) any acquisition directly
from the Company (other than by exercise of a conversion privilege), (B) any
acquisition by the Company or any of its subsidiaries, (C) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or
any of its subsidiaries or (D) any acquisition by any company with respect to which,
following such acquisition, more than 70% of, respectively, the then outstanding
Shares of

2

 

common stock of such company and the combined voting power of the then
outstanding voting securities of such company entitled to vote generally in the
election of directors is then beneficially owned, directly or indirectly, by 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 acquisition in substantially the same
proportions as their ownership, solely in their capacity as Shareholders of the
Company, immediately prior to such acquisition, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be; or

               (ii) Individuals who, as of the beginning of such period, constitute the Board
(the “Incumbent Board”) cease for any reason to constitute at least a majority of
the Board; provided, however, that any individual becoming a director subsequent to
the beginning of such period 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 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 either
an actual or threatened election contest (as such terms is used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act); or

               (iii) Consummation of a reorganization, merger or consolidation, in each case,
with respect to which 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 reorganization,
merger or consolidation, do not, following such reorganization, merger or
consolidation, beneficially own, directly or indirectly, solely in their capacity as
Shareholders of the Company, more than 70% 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 company resulting from such reorganization, merger or consolidation in
substantially the same proportions as their ownership, immediately prior to such
reorganization, merger or consolidation of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be; or

               (iv) Consummation of (A) a complete liquidation or dissolution of the Company
or (B) a sale or other disposition of all or substantially all of the assets of the
Company, other than to a company, with respect to which following such sale or other
disposition, more than 70% of, respectively, the then outstanding Shares of common
stock of such company and the combined voting power of the then outstanding voting
securities of such company entitled to vote generally in the election of directors
is then

3

 

beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities, solely in their capacity as Shareholders of the Company,
who were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such sale or
other disposition in substantially the same proportion as their ownership,
immediately prior to such sale or other disposition, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be.

          (b) The term “Mandatory Retirement Date” shall mean the compulsory retirement date, if any,
established by the Company for those executives of the Company who, by reason of their positions
and the size of their nonforfeitable annual retirement benefits under the Company’s pension,
profit-sharing, and deferred compensation plans, are exempt from the provisions of the Age
Discrimination in Employment Act, 29 U.S.C. Sections 621, et seq, which date shall not in any event
be earlier for any executive than the last day of the month in which such Executive reaches age 65.

          (c) The term “Payment Period” shall mean [twenty-four (24)] [thirty-six (36)] months.

     4. Compensation During Period of Employment. For so long during Executive’s period of
Employment as Executive is an employee of the Company, the Company shall be obligated to compensate
Executive as follows:

          (a) Executive shall continue to receive Executive’s full base salary at the rate in effect
immediately prior to the Change in Control. Executive’s base salary shall be increased annually,
with each such increase due on the anniversary date of Executive’s most recent previous increase.
Each such increase shall be no less than an amount which at least equals on a percentage basis the
mean of the annualized percentage increases in base salary for all elected officers of the Company
during the two full calendar years immediately preceding the Change in Control.

          (b) Executive shall continue to participate in all benefit and compensation plans (including
but not limited to the Stock Option Plan, Long-Term Incentive Plan, Management Incentive Program,
Non-Qualified Benefit Security Plan, Executive Life Insurance Program, Savings Benefit Restoration
Plan, Performance Share Deferred Compensation Plan, pension plan, savings plan, flexible benefits
plan, life insurance plan, health and accident plan or disability plan) in which Executive was
participating immediately prior to the Change in Control, or in plans providing substantially
similar benefits, in either case upon terms and conditions and at levels at least as favorable as
those provided to Executive under the plans in which Executive was participating immediately prior
to the Change in Control;

          (c) Executive shall continue to receive all fringe benefits, perquisites, and similar
arrangements which Executive was entitled to receive immediately prior to the Change in Control;
and

4

 

          (d) Executive shall continue to receive annually the number of paid vacation days and holidays
Executive was entitled to receive immediately prior to the Change in Control.

     5. Compensation upon Termination of Employment. If, during the Period of Employment,
the Company shall terminate Executive’s employment for any reason (other than for a reason and as
expressly provided in Section 6 hereof), or if Executive shall terminate Executive’s employment for
“Good Reason” (as hereinafter defined in Section 6(b)) then the Company shall be obligated to
compensate Executive as follows and no payments or benefits received pursuant to this Section 5
shall be reduced or terminated as a result of Executive reaching the Mandatory Retirement Date:

          (a) In lieu of any salary payments that the Executive would have received if he had continued
in the employment of the Company during the Payment Period, the Company shall pay to Executive in a
lump sum, by not later than the fifth business day following the Date of Termination (as
hereinafter defined in Section 8), an amount equal to one-twelfth of Executive’s annualized base
salary in effect immediately prior to the Date of Termination, multiplied by the number of months
in the Payment Period.

          (b) By not later than the fifth day following the Date of Termination, the Company shall pay
Executive in a lump sum an amount equal to the product of (x) the number of months in the Payment
Period and (y) the sum of

(i) under the Company’s Management Incentive Program (the “MIP”), and in lieu
of any further grants under the MIP that the Executive would have received if
he had continued in the employment of the Company during the Payment Period,
the greatest of one-twelfth of : (A) the amount most recently paid to
Executive for a full calendar year; (B) Executive’s “target incentive amount”
for the calendar year in which his Date of Termination occurs; or (C)
Executive’s “target incentive amount” in effect prior to the Change in
Control for the calendar year in which the Change in Control occurs; plus, if
applicable,

(ii) under the Company’s Long-Term Incentive Plan (the “LTIP”), and in lieu
of any further grants under the LTIP that the Executive would have received
if he had continued in the employment of the Company during the Payment
Period, the greatest of (A) with respect to the most recently completed Plan
Cycle commencing with the 1998-2000 Plan Cycle (if completed), one-twelfth of
the “calculated market value” of the Performance Shares actually awarded to
Executive (including the value of any Performance Shares Executive may have
elected to defer under the Performance Share Deferred Compensation Plan); (B)
with respect to the most recently commenced Plan Cycle under the Long-Term
Incentive Plan (if Executive is a participant in such Plan Cycle) prior

5

 

to your Date of Termination, one-twelfth of the “calculated market value” of
the phantom Performance Shares, if any, awarded to Executive; or (C) with
respect to the most recently commenced Plan Cycle prior to the date of the
occurrence of the Change in Control, one-twelfth of the “calculated market
value” of the phantom Performance shares, if any, awarded to Executive. Any
payment received pursuant to this Section 5 (b)(ii) shall be in addition to
and not in lieu of any payments required to be made to Executive as the
result of the happening of an event that would constitute a change in control
pursuant to the provisions of the LTIP

               Executive’s “target incentive amount” under the Management Incentive Program is determined by
multiplying Executive’s salary range midpoint by the incentive target percentage, which is
applicable to Executive’s incentive category under such Program. For purposes of this Section 5,
the “calculated market value” of Performance Shares, shares deferred under the Performance Share
Deferred Compensation Plan, phantom Performance Shares under the LTIP or stock options under the
Stock Option Plan shall be the mean of the high and low prices of the Company’s common stock on the
relevant date as reported on the New York Stock Exchange Composites Transactions listing (or
similar report), or, if no sale was made on such date, then on the next preceding day on which a
sale was made multiplied by the number of shares involved in the calculation. The relevant date
for clauses 5(b)(ii)(B) and 5(b)(ii)(C) is the date upon which the Compensation Committee
(“Committee”) of the Board of Directors awarded the shares of stock in question; for clause
5(b)(ii)(A) is the date on which the Committee made a determination of attainment of financial
objectives and awarded Performance Shares (including any Performance Shares Executive may have
elected to defer under the Performance Share Deferred Compensation Plan).

               Any payment received pursuant to Section 5 (b)(i) shall be in addition to and not in lieu of
any payments required to be made to Executive as the result of the happening of an event that would
constitute a change in control pursuant to the provisions of the MIP.

          (c) If Executive is under age 55, or over the age of 55 but not eligible to retire, at the
Date of Termination the Company shall maintain in full force and effect, for Executive’s continued
benefit, for the Payment Period, all health and welfare benefit plans and programs or arrangements
in which Executive was entitled to participate immediately prior to the Date of Termination (or
such other comparable plans, programs or arrangements that provide, in the aggregate, benefits
which have an economic value at least as favorable to the Executive as those plans, programs and
arrangements in which Executive participated prior to the Date of Termination, as long as
Executive’s continued participation is possible under the general terms and provisions of such
plans and programs. In the event that Executive’s participation in any such plan or program is
barred [or modified], the Company shall provide Executive with benefits substantially similar to
those to which Executive would have been entitled to receive under such plans and programs, had
Executive continued to participate in them as an Executive of the

6

 

Company plus an amount in cash equal to the amount necessary to cause the amount of the
aggregate after-tax compensation and employee benefits Executive receive pursuant to this provision
to be equal to the aggregate after-tax value of the benefits which Executive would have received if
Executive continued to receive such benefits as an employee. If Executive is age 55 or over and
eligible to retire on the Date of Termination, the Company shall provide Executive with those
health and welfare benefits to which Executive would be entitled under the Company’s general
retirement policies if Executive retired on the Termination Date with the Company paying that
percentage of the premium cost of the plans which it would have paid under the terms of the plans
in effect immediately prior to the Change of Control with respect to individuals who retire at age
65, regardless of Executive’s actual age on the Termination Date, provided such benefits would be
at least equal to those which would have been payable if Executive had been eligible to retire and
had retired immediately prior to the Change in Control;

               (d) The Company shall for the Payment Period continue, and Executive shall be entitled to
receive fringe benefit programs, perquisites, and similar arrangements (which, by way of
illustration and not limitation, shall include: company car, health, dining and country club
memberships, financial planning services, telecommunications services, home security systems and
the like) which in the aggregate have an economic value at least as favorable to the Executive as
those the Executive was entitled to receive or participate in immediately prior to the Date of
Termination; and

               (e) In lieu of further grants of stock options that would have been received by the Executive
if he had remained employed by the Company during the Payment Period, the Company shall pay to the
Executive a sum equal to one twelfth of the number of stock options in the last annual grant of
stock options made by the Company to the Executive (“stock option grant”), multiplied by the number
of months in the Payment Period, multiplied by the calculated market value of the Common Stock of
the Company on the date of the stock option grant, multiplied by a factor used by the Company in
valuing fully vested options with a 10 year life in the Company’s most recent Annual Report on Form
10-K for options held by senior executives pursuant to the Black-Scholes method of valuing stock
options, or, if such valuation was not made in the Form 10-K, then under the Black-Scholes method
assuming options would be outstanding for 10 years.

The Company shall, in addition to the benefits to which Executive is entitled under the retirement
plans or programs in which Executive participates, pay Executive in a lump sum in cash at
Executive’s normal retirement date (or earlier retirement date should Executive so elect), as such
date is defined in the retirement plans or programs in which Executive participates, an amount
equal to the actuarial equivalent of the retirement pension to which Executive would have been
entitled under the terms of such retirement plans or programs had Executive accumulated additional
years of continuous service under such plans equal in length to Executive’s Payment Period. The
length of the Payment Period will be added to total years of continuous service for determining
vesting, the amount of benefit accrual, to the age which Executive will be considered to be for the
purposes of determining eligibility for normal or early retirement calculations and the age used
for determining the amount of any actuarial reduction. For the purposes

7

 

of calculating benefit accrual, the amount of compensation Executive will be deemed to have
received during each month of Executive’s Payment Period shall be equal to the sum of Executive’s
annual base salary prorated on a monthly basis as provided for under subsection 4(a) immediately
prior to the Date of Termination (including salary increases), plus under the Company’s Management
Incentive Program the greatest of one-twelfth of (which amount shall reduced by the actuarial
equivalent of any amounts to which Executive is actually entitled pursuant to the provisions of
said retirement plans and programs):

	 	(i)  	the amount most recently paid to Executive for a full
calendar year,

	 	(ii)  	Executive’s “target incentive amount” for the calendar
year in which Executive’s Date of Termination occurs, or

	 	(iii)  	Executive’s “target incentive amount” in effect prior
to the Change in Control for the calendar year in which the Change in
Control occurs

Attached as Exhibit 1 is an illustration, not intending to be exhaustive, of examples of how
inclusion of the Payment Period may affect the calculation of Executive’s retirement benefit.

     6. Termination.

          (a) Termination Without Compensation. If Executive’s employment or the term of this
Agreement is terminated for any of the following reasons and in accordance with the provisions of
this Section 6, Executive shall not be entitled by virtue of this Agreement to any of the benefits
provided in the foregoing Section 5:

(i) If prior to the Commencement of the Period of Employment, as a result of
Executive’s incapacity due to physical or mental illness, Executive shall
have been absent from Executive’s duties with the Company on a full-time
basis for 120 consecutive business days, and within thirty (30) days after a
written Notice of Termination (as hereinafter defined in Section 7) is given,
Executive shall not have returned to the full-time performance of Executive’s
duties (“Incapacity Discharge”);

(ii) If prior to the Commencement of the Period of
Employment, the Company shall desire to terminate this Agreement without
reason (“Convenience Termination”).

(iii) If the Company shall have Cause. For the
purposes of this Agreement, the Company shall have “Cause” to terminate
Executive’s employment hereunder upon (A) the willful and continued
failure by Executive to substantially perform Executive’s

8

 

duties with the Company, which failure causes material and demonstrable
injury to the Company (other than any such failure resulting from Executive’s
incapacity due to physical or mental illness), after a demand for substantial
performance is delivered to Executive by the Board which specifically
identifies the manner in which the Board believes that Executive has not
substantially performed Executive’s duties, and after Executive has been
given a period (hereinafter known as the “Cure Period”) of at least thirty
(30) days to correct Executive’s performance, or (B) the willful engaging by
Executive in other gross misconduct materially and demonstrably injurious to
the Company. For purposes of this section, no act, or failure to act, on
Executive’s part shall be considered “willful” unless conclusively
demonstrated to have been done, or omitted to be done, by Executive not in
good faith and without reasonable belief that Executive’s action or omission
was in the best interests of the Company.

Notwithstanding the foregoing, Executive shall not be deemed to have been
terminated for Cause unless and until there shall have been delivered to
Executive a Notice of Termination which shall include a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board at a meeting of the Board called and held for
the purpose (after reasonable notice to Executive and an opportunity for
Executive, together with Executive’s counsel, to be heard before the Board),
finding that in the good faith opinion of the Board Executive was guilty of
conduct set forth above in clauses (i), including the expiration of the Cure
Period without the correction of Executive’s performance, or (ii) of the
preceding subsection and specifying the particulars thereof in detail.

(iv) This Agreement shall terminate upon the death,
retirement or voluntary resignation of the Executive prior to the
commencement of the Period of Employment.

          (b) Termination With Compensation. If Executive terminates his employment or his
employment terminates for any of the following reasons and in accordance with the provisions of
this Section 6, Executive shall be entitled by virtue of this Agreement to the benefits provided in
the foregoing Section 5 as described below:

(i) The Executive may terminate his employment with
the Company at any time during the Period of Employment for Good Reason
(“Good Reason Termination”) and shall receive all of the benefits and
payments provided in Section 5. For purposes of this Agreement, the
term “Good Reason” shall mean:

9

 

	 	(A)  	without Executive’s express
written consent, (1) any involuntary termination of the
Executive’s employment, except pursuant to Section 6 hereof,
during the Employment Period, (2) the assignment to Executive
of any new duties or responsibilities inconsistent in character
with Executive’s positions, duties, responsibilities, and
reporting relationships and status within the Company
immediately prior to a Change in Control, (3) any change in
Executive’s duties, responsibilities, reporting relationships,
titles or offices as in effect immediately prior to a Change in
Control, including, but not limited to, a reduction in duties
or responsibilities which occurs because the Company is no
longer an independent publicly-held entity (4) any removal of
Executive from or any failure to re-elect Executive to any
officer or director position of the Company, (5) a change in
the annual or long term incentive plan in which Executive
currently participates such that Executive’s opportunity to
earn incentive compensation is impaired, (6) a material
reduction in the aggregate value of Company perquisites made
available to Executive, (7) an elimination or material
impairment of Executive’s ability to participate in retirement
plans comparable to those in which Executive currently
participates, (8) any increase in Executive’s obligation to
travel on the Company’s business over Executive’s present
business travel obligations, (9) an elimination or material
impairment of Executive’s ability to receive stock options with
values comparable to those Executive was granted within the one
year period preceding the commencement of the Employment
Period;
	 
	 	(B)  	the failure of the Company to
comply with any other of its obligations under Section 4
herein;
	 
	 	(C)  	the relocation of the offices
of the Company at which Executive were employed immediately
prior to the Change in Control to a location which is more than
fifty (50) miles from such prior location, or the failure of
the Company to (A) pay or reimburse Executive, in accordance
with the Company’s relocation policy for its employees in
existence immediately prior to a Change in Control, for all
reasonable costs and expenses, plus “gross-ups” referred to in
such policy incurred by Executive relating to a change of
Executive’s principal residence in connection with any
relocation of the

10

 

	 	   	Company’s offices to which Executive consents, and (B)
indemnify Executive against any loss (defined as the
difference between the actual sale price of such residence and
the higher of (1) Executive’s aggregate investment in such
residence of (2) the fair market value of such residence as
determined by the relocation management organization used by
the Company immediately prior to the Change in Control (or
other real estate appraiser designated by Executive and
reasonably satisfactory to the Company)) realized in the sale
of Executive’s principal residence in connection with any such
change of residence;
	 
	 	(D)  	the failure of the Company to
obtain the assumption of and the agreement to perform this
Agreement by any successor as contemplated in Section 11
hereof; or
	 
	 	(E)  	any purported termination of
Executive’s employment which is not effected pursuant to a
Notice of Termination satisfying the requirements of Section 7
hereof.
	 
	 	(F)  	Convenience Termination after Commencement of the
Period of Employment

(ii) If Executive dies while employed by the Company during the Period of
Employment while having cause to terminate his employment as a Good Reason
Termination (whether or not Executive has provided Notice of Termination to
the Company pursuant to Section 7), Executive’s beneficiary or beneficiaries
named on Exhibit 2 to this Agreement (or Executive’s estate if he has not
named a beneficiary) shall be entitled to receive those payments provided
under Sections 5(a) and 5(b) of this Agreement in addition to any benefits
that such beneficiaries would be entitled under any other plan, program or
policy of the Company as a result of Executive’s employment with the Company.

(iii) If, during the Period of Employment, Executive either (A) retires from
employment with the Company or (B) if the Company discharges the Executive
due to an Incapacity Discharge, in either case while having cause to
terminate his employment as a Good Reason Termination (whether or not
Executive has provided Notice of Termination to the Company pursuant to
Section 7) the Executive shall receive all of the benefits and payments
provided in Section 5.

     7. Notice Of Termination. Any termination of Executive’s employment by the Company or
any termination by Executive as a Good Reason Termination shall be

11

 

communicated by written notice to the other party hereto. For purposes of this Agreement,
such notice shall be referred to as a “Notice of Termination.” Such notice shall, to the extent
applicable, set forth the specific reason for termination, and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of Executive’s employment
under the provision so indicated.

     8. Date Of Termination.  “Date of Termination” shall mean:

          (a) If Executive terminates Executive’s employment as a Good Reason Termination, the date
specified in the Notice of Termination, but in no event more than sixty (60) days after Notice of
Termination is given.

          (b) If Executive’s employment is terminated for Cause under subsection 6(a)(iii), the date on
which a Notice of Termination is given, except that the Date of Termination shall not be any date
prior to the date on which the Cure Period expires without the correction of Executive’s
performance.

          (c) If Executive’s employment pursuant to this Agreement is terminated following absence due
to physical incapacity, under subsection 6(a)(i), then the Date of Termination shall be thirty (30)
days after Notice of Termination is given (provided that Executive shall not have returned to the
performance of Executive’s duties on a full-time basis during such thirty (30) day period).

          (d) If the Company desires to terminate this Agreement as a Convenience Termination, then the
date specified in the Notice of Termination, shall be at least [twelve (12)] [thirty-six (36)]
months after Notice of Termination is given.

          (e) A termination of employment by either the Company or by Executive shall not affect any
rights Executive or Executive’s surviving spouse or beneficiaries may have pursuant to any other
agreement or plan of the Company providing benefits to Executive, except as provided in such
agreement or plan.

     9. Certain Additional Payments.

          (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company to Executive or for Executive’s benefit
(whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required under this section 9)
(a “Payment”) would be subject to the excise tax imposed by Section 4999 (or any successor
provisions) of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or
penalty is incurred by Executive with respect to such excise tax (such excise tax, together with
any such interest and penalties, is hereinafter collectively referred to as the “Excise Tax”), then
Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount
such that after payment by Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and any interest and
penalties imposed with respect thereto) and

12

 

Excise Tax imposed on the Gross-Up Payment, Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.

          (b) Subject to the provisions of subsection 9(c), all determinations required to be made under
this section 9, including whether and when such a Gross-Up Payment is required and the amount of
such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall
be made by Ernst & Young (or their successors) (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and to Executive within fifteen (15) business days of
the receipt of notice from Executive that there has been a Payment, or such earlier time as is
requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change in Control, Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment as
determined pursuant to this section 9, shall be paid by the Company to Executive within five (5)
days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that
no Excise Tax is payable by Executive, it shall furnish Executive with a written opinion that
failure to report the Excise Tax on Executive’s applicable federal income tax return would not
result in the imposition of a negligence or similar penalty. Any determination by the Accounting
Firm shall be binding upon the Company and Executive. As a result of the uncertainty of the
application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company
should have been made (“Underpayment”). In the event that the Company exhausts its remedies
pursuant to Section 9(c) and Executive thereafter is required to make a payment of any Excise Tax,
the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to Executive or for Executive’s benefit.

          (c) Executive shall notify the Company in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten (10) business days after
Executive or his representative is informed in writing of such claim and shall apprise the Company
of the nature of such claim and the date on which such claim is requested to be paid. Executive
shall not pay such claim prior to the expiration of the thirty (30) day period following the date
on which Executive gives such notice to the Company (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If the Company notifies Executive in
writing prior to the expiration of such period that it desires to contest such claim, Executive
shall:

(i) give the Company any information reasonably requested by the Company
relating to such claim,

(ii) take such action in connection with contesting such claim as the Company
shall reasonably request in writing from time to time,

13

 

including, without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by the Company,

(iii) cooperate with the Company in good faith in order effectively to
contest such claim, and

(iv) permit the Company to participate in any proceedings relating to such
claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold Executive harmless, on an after-tax basis, for any Excise tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such representation and payment
of costs and expenses. Without limitation on the foregoing provisions of this subsection 9(c), the
Company shall control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of any such claim and may, at its sole option,
either direct Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and Executive agree to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Company shall determine; provided, however, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such payment to Executive, on
an interest-free basis and shall indemnify and hold Executive harmless, on an after-tax basis, from
any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to such advance; and
further provided that any extension of the statute of limitations relating to payment of taxes for
Executive’s taxable year with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company’s control of the contest shall
be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

          (d) If, after the receipt by Executive of an amount advanced by the Company pursuant to
subsection 9(c), Executive become entitled to receive any refund with respect to such claim,
Executive shall (subject to the Company’s complying with the requirements of subsection 9(c)
promptly pay to the Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by Executive of an amount advanced
by the Company pursuant to subsection 9(c), a determination is made that Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify Executive in
writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days
after such determination, then such advance shall be forgiven and shall not be required to be
repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

14

 

     10. No Obligation to Mitigate Damages; No Effect on Other Contractual Rights.
Executive shall not be required to refund the amount of any payment or employee benefit provided
for or otherwise mitigate damages under this Agreement by seeking or accepting other employment or
otherwise, nor shall the amount of any payment required to be made under this Agreement be reduced
by any compensation earned by Executive as the result of any employment by another employer after
the date of termination of Executive’s employment with the Company, or otherwise. Upon receipt of
written notice from Executive that Executive has been reemployed by another company or entity on a
full-time basis, benefits, fringe benefits and perquisites otherwise receivable by Executive
pursuant to Sections 5(c) or 5(d) related to life, health, disability and accident insurance plans
and programs and other similar benefits, company cars, financial planning, country club
memberships, and the like (but not Incentive Compensation, LTIP, Pension Plans or other similar
plans and programs) shall be reduced to the extent comparable benefits are made available to
Executive at his new employment and any such benefits actually received by Executive shall be
reported to the Company by the Executive.

          The provisions of the Agreement, and any payment or benefit provided for hereunder, shall not
reduce any amount otherwise payable, or in any way diminish Executive’s existing rights, or rights
which would occur solely as a result of the passage of time, under any other agreement, contract,
plan or arrangement with the Company.

     11. Successors and Binding Agreement

          (a) The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company,
by agreement in form and substance satisfactory to Executive, to assume and agree to perform this
Agreement.

          (b) This Agreement shall be binding upon the Company and any successor of or to the Company,
including, without limitation, any person acquiring directly or indirectly all or substantially all
of the assets of the Company whether by merger, consolidation, sale or otherwise (and such
successor shall thereafter be deemed “the Company” for the purposes of this Agreement), but shall
not otherwise be assignable by the Company.

          (c) This Agreement shall inure to the benefit of and be enforceable by Executive and
Executive’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If Executive should die while any amounts would still be
payable to Executive pursuant to Section 5 hereunder if Executive had continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to Executive’s devisee, legatee, or other designee or, if there be no such designee, to
Executive’s estate.

15

 

     12. Notices. For the purposes of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this Agreement, provided that
all notices to the Company shall be directed to the attention of the Chief Executive Officer of the
Company with a copy to the Secretary of the Company, or to such other address as either party may
have furnished to the other in writing, except that notices of change of address shall be effective
only upon receipt.

     13. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of North Carolina, without giving effect to
the principles of conflict of laws of such State.

     14. Miscellaneous. No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in a writing signed by
Executive and the Company. No waiver by either party hereto at any time of any breach by the other
party hereto or compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof, have been made by either party which
is not set forth expressly in this Agreement.

     15. Validity. The invalidity or unenforceability of any provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

     16. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
agreement.

     17. Withholding Of Taxes. The Company may withhold from any amounts payable under
this Agreement all federal, state, city or other taxes as shall be required pursuant to any law or
government regulation or ruling.

     18. Nonassignability. This Agreement is personal in nature and neither of the parties
hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or
obligations hereunder, except as provided in Section 11 above. Without limiting the foregoing,
Executive’s right to receive payments hereunder shall not be assignable or transferable, whether by
pledge, creation of a security interest or otherwise, other than by a transfer by Executive’s will
or by the laws of descent and distribution and in the event of any attempted assignment or transfer
contrary to this Section the Company shall have no liability to pay any amounts so attempted to be
assigned or transferred.

     19. Legal Fees and Expenses. If a Change in Control shall have occurred, thereafter
the Company shall pay and be solely responsible for any and all attorneys’ and related fees and
expenses incurred by Executive to successfully (in whole or in part and

16

 

whether by modification of the Company’s position, agreement, compromise, settlement, or
administrative or judicial determination) enforce this Agreement or any provision hereof or as a
result of the Company or any Shareholder of the Company contesting the validity or enforceability
of this Agreement or any provision hereof. To secure the foregoing obligation, the Company shall,
within 90 days after being requested by Executive to do so, enter into a contract with an insurance
company, open a letter of credit or establish an escrow in a form satisfactory to Executive.

     20. Employment Rights. Nothing expressed or implied in this Agreement shall create
any right or duty on Executive’s part or on the part of the Company to have Executive remain in the
employment of the Company prior to the commencement of the Period of Employment; provided, however,
that any termination or purported termination of Executive’s employment or of this Agreement, for
any reason other than those set forth in Sections 6(a)(i), 6(a)(iii) or 6(a)(iv), following the
commencement of any discussion with a third party, or the announcement by a third party of the
commencement of, or the intention to commence a tender offer, or other intention to acquire all or
a portion of the equity securities of the Company that ultimately results in a Change in Control
shall (unless such termination is conclusively demonstrated to have been wholly unrelated to any
such activity relating to a Change in Control) be deemed to be a termination of Executive’s
employment after a Change in Control for purposes of this Agreement and both the Period of
Employment and the Payment Period shall be deemed to have begun on the day prior to such
termination.

     21. Right Of Setoff. There shall be no right of setoff or counterclaim against, or
delay in, any payment by the Company to Executive or Executive’s designated beneficiary or
beneficiaries provided for in this Agreement in respect of any claim against Executive or any debt
or obligation owed by Executive, whether arising hereunder or otherwise.

     22. Rights To Other Benefits. The existence of the Agreement and Executive’s rights
hereunder shall be in addition to, and not in lieu of, Executive’s rights under any other of the
Company’s compensation and benefit plans and programs, and under any other contract or agreement
between Executive and the Company.

     23. Pooling of Interests. In the event that the independent accountants of the
Company shall determine that this Agreement or anything contained herein shall prevent the Company
from consummating any business combination approved by the Board of Directors which combination is
intended to be accounted for under the pooling of interests method of accounting (“Pooling”), then
Participant agrees that this Agreement may at any time and in the sole discretion of the Board of
Directors either be: a) amended in such fashion as may be requested by the Company so as to allow
such business combination to be accounted for as a Pooling, or, if this Agreement cannot be so
amended, or (b) terminated. Provided, however, that any such amendment shall: (x) be as limited in
scope as is absolutely necessary in the opinion of the Company’s advisors to allow the business
combination to be accounted for as a Pooling; and (y) be designed to have as minimal an economic
detriment to the Participant as is possible while still allowing the business combination to be
accounted for as a Pooling.

17

 

     [24. Superceded Employee Protection Plan. If this Agreement is either (a) amended
pursuant to Section 23, and if such amendment reduces the benefits to be received by the Executive
or his Beneficiaries pursuant to any section of this Agreement in any way deemed material by the
Executive, or (b) terminated pursuant to Section 23, the Executive shall receive, in place of and
not in addition to, the benefits under the Company’s Employee Protection Plan (“EPP”) or Employee
Termination Protection Plan (“ETPP”), in effect at the time of such amendment or termination, not
withstanding any provision of the EPP or ETPP which would make the Executive ineligible to receive
benefits under the EPP or ETPP.]

     [The following Section 24 is included in the form of Management Continuity Agreement provided to
those executives who had Management Continuity Agreements in place prior to October 1999:

     24. Superceded Agreement. Except as provided herein, the agreement between Executive
and the Company originally dated ___, and thereafter amended from time to time,
relating to the same subject matter as this Agreement (the “Original Agreement”), is hereby
superceded in its entirety by this Agreement, shall be of no further force or effect as of the date
of this Agreement and any rights that Executive may have under the Original Agreement which have
accrued prior to the date hereof, to the extent not previously waived by the Executive, are hereby
waived. If, however, this Agreement is either (a) amended pursuant to Section 23 above, and if such
amendment reduces the benefits to be received by the Executive or his Beneficiaries pursuant to any
section of this Agreement in any way deemed material by the Executive, or (b) terminated pursuant
to Section 23 above, then the Original Agreement shall continue in full force and effect as if
unmodified and not superceded and the Executive shall receive all the benefits of the Original
Agreement accruing after the date hereof in accordance with its terms. ]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 
	 	 	The BFGoodrich Company

	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	

	 	 	 	EXECUTIVE

18

 

Exhibit 1

     A. If as of Executive’s Date of Termination Executive’s actual years of service plus the
length of Executive’s Payment Period is at least 10, then

          1. If as of Executive’s Date of termination Executive’s age plus the length of
Executive’s Payment Period is at least 65, Executive’s retirement benefit under section
5(e) will be calculated as a “normal retirement” benefit to which Executive would have been
entitled under the terms of the retirement plan in which Executive participate had
Executive accumulated continuous service equal to such sum; and

          2. If as of Executive’s Date of Termination Executive’s age plus the length of
Executive’s Payment Period is at least 55 but less than 65, Executive’s retirement benefit
under section 5(e) will be calculated as an “early retirement” benefit to which Executive
would have been entitled under the terms of the retirement plan in which Executive
participate had Executive accumulated continuous service equal to such sum. The actuarial
reduction used shall be the actuarial reduction factor for early retirement, calculated to
Executive’s actual age plus the length of Executive’s Payment Period at Executive’s Date of
Termination.

          Furthermore, if Executive were on the active rolls of the Company as of December 31,
1989 and if the sum of Executive’s actual years of service plus the length of Executive’s
Payment Period is at least 10 but less than 24, then for purposes of section 5(e) Executive
will also receive an Additional Credit for up to 4 years. The Additional Credit Executive
will receive will depend upon the sum of the years of Executive’s actual service plus the
length of Executive’s Payment Period and be equal to the lesser of:

(x) 4 years of Additional Credit; or

(y) The amount of Additional Credit needed such that, when added to the sum of
Executive’s actual years of service plus the length of Executive’s Payment Period, it
will create a total of exactly 24.

          No Additional Credit will be applied if the sum of Executive’s actual years of service
plus the length of Executive’s Payment Period if 24 or greater. Executive will not receive
any Additional Credit if Executive commenced employment with the Company on or after
January 1, 1990.

     B. If as of Executive’s Date of Termination the sum of Executive’s actual years of service
plus the length of Executive’s Payment Period is less than 10, or Executive’s age plus the length
of Executive’s Payment Period is less than 55, Executive’s retirement benefit under section 5(e)
will be calculated as a “deferred vested pension” to which Executive would have been entitled under
the terms of the retirement

19

 

plan in which Executive participate had Executive accumulated
continuous service equal to such sum. The actuarial reduction used shall be the actuarial reduction factor for a deferred
vested pension, calculated to Executive’s actual age at Executive’s Date of Termination plus the
length of Executive’s Payment Period.

For purposes of section 5(e), “actuarial equivalent” shall be determined using the same methods and
assumptions as those utilized under the Company’s retirement plans and programs immediately prior
to the Change in Control.

20

 

EXHIBIT 2

BENEFICIARY DESIGNATION

     I hereby designate the following person(s) as a beneficiary for the purposes of Section 6(e) to the
extent of the percentage interest listed next to their name:

	 	 	 	 	 	 	 	 
	 
	 	 Name	 	 	Percentage Interest	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	Total (cannot exceed 100%)
	 	 	 	 	 	 
	 

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