Document:

EX-10.2

Exhibit
10.2 

 

    DOVER
    CORPORATION

    EXECUTIVE OFFICER ANNUAL INCENTIVE PLAN

    (Amended and Restated as of January 1, 2009)

 

    1. Purpose. The purposes of the Dover Corporation
    Executive Officer Annual Incentive Plan (the
    “Plan”) are to provide annual incentive
    compensation to designated executive officers of Dover
    Corporation (the “Company”) based on the
    achievement of established performance targets, to encourage
    such executive officers to remain in the employ of the Company,
    to assist the Company in attracting and motivating new executive
    officers and to qualify the incentive payments awarded under the
    Plan (the “Awards”) as qualified
    “performance-based compensation” so that payments
    under the Plan shall be deductible in accordance with
    Section 162(m) of the Internal Revenue Code of 1986, as
    amended (the “Code”).

 

    2. Eligibility. The Compensation Committee of the
    Board of Directors of the Company (the
    “Committee”) shall each year determine the
    Executive Officers of the Company eligible to participate in the
    Plan (the “Participants”). For purposes hereof,
    “Executive Officers” shall mean the Chief
    Executive Officer and the Chief Operating Officer of the
    Company, each executive of the Company or an Affiliate who
    reports directly to the Chief Executive Officer or the Chief
    Operating Officer of the Company, and any other executive of the
    Company or an Affiliate as may be selected by the Committee or
    who is an “executive officer” of the Company within
    the meaning of
    Rule 3b-7
    under the Securities Exchange Act of 1934. As used herein,
    “Affiliate” shall mean each corporation that is
    a member of the Company’s affiliated group, within the
    meaning of Section 1504 of the Code (without regard to
    Section 1504(b) of the Code) other than any subsidiary of
    the Company that is itself a publicly held corporation as such
    term is defined in Section 162(m) of the Code and the
    Treasury regulations issued thereunder and any subsidiaries of
    such publicly held corporation subsidiary.

 

    3. Performance Periods. Each performance period for
    purposes of the Plan shall have a duration of one calendar year,
    commencing January 1 and ending the next December 31
    (“Performance Period”).

 

    4. Administration. The Committee shall have the full
    power and authority to administer and interpret the Plan and to
    establish rules for its administration including, without
    limitation, correcting any defect, supplying any omission or
    reconciling any inconsistency in this Plan in the manner and to
    the extent it shall deem necessary to carry this Plan into
    effect. Unless otherwise specified by the Committee at the time
    of grant, all Awards are intended to qualify as
    performance-based compensation within the meaning of
    Section 162(m) of the Code (“Qualified Performance
    Awards”). The Committee retains the discretion to grant
    Awards that are not intended to qualify as Qualified Performance
    Awards, to determine the terms and conditions of such Awards and
    adjust or prorate such Awards. All decisions of the Committee on
    any question concerning the selection of Participants and the
    interpretation and administration of the Plan shall be final,
    conclusive, and binding upon all parties.

 

    5. Performance Targets. On or before the
    90th day of each Performance Period (provided that the
    outcome is substantially uncertain at the time the Committee
    establishes the targets), the Committee shall establish in
    writing one or more performance targets (“Performance
    Targets”) for the Performance Period. The Performance
    Targets shall in all instances be determined on the basis of the
    one or more of the following performance criteria as they apply
    to the Company as a whole or to a subsidiary, a division, or
    business unit: (a) earnings before interest, taxes,
    depreciation and amortization, (b) cash flow,
    (c) earnings per share, (d) operating earnings,
    (e) return on equity, (f) return on investment,
    (g) total shareholder return or internal total shareholder
    return, (h) net earnings, (i) sales or revenue,
    (j) expense targets, (k) targets with respect to the
    value of common

    

 

    stock, (l) margins, (m) pre-tax or after-tax net
    income, (n) market penetration, (o) geographic goals,
    (p) business expansion goals, or (q) goals based on
    operational efficiency.

 

    6. Incentive Payout Calculation. As soon as
    practicable after the end of each Performance Period, the
    Committee shall make a determination in writing with regard to
    the attainment of the Company’s Performance Targets
    specified pursuant to Section 5 for such Performance Period
    and shall calculate the possible payout of incentive awards for
    each Participant.

 

    7. Reduction Of Calculated Payouts. The Committee
    shall have the power and authority to reduce or eliminate for
    any reason the payout calculated pursuant to Section 6 that
    would otherwise be payable to a Participant based on the
    established target Award and payout schedule, provided,
    however, that the exercise of discretion to reduce or
    eliminate the payout to one Participant may not result in an
    increase in the amount payable to another Participant.

 

    8. Payouts. Qualified Performance Awards shall not
    be paid before the Committee certifies in writing that the
    Performance Targets specified pursuant to Section 5 have
    been satisfied. No portion of a Qualified Performance Award may
    be paid if the Performance Targets have not been satisfied.
    Notwithstanding the forgoing, the Committee may, in its sole and
    absolute discretion, permit the payment of Qualified Performance
    Awards with respect to a Performance Period in the case of death
    or disability of the Participant or a change in ownership or
    control of the Company (within the meaning of Section 280G
    of the Code) during such Performance Period without regard to
    actual achievement of the Performance Targets and whether or not
    payment of such Awards would be deductible under
    Section 162(m) of the Code but only if such payment would
    not cause Awards made under the Plan to fail to be qualified
    performance-based compensation under Section 162(m) of the
    Code and Treasury regulations issued thereunder. The Committee
    may, in its sole and absolute discretion, permit the payment of
    Awards which are not Qualified Performance Awards without regard
    to actual achievement of the Performance Targets. In no event
    shall the payout under the Plan to any Participant for any
    Performance Period exceed $5 million. Payment of the Award
    determined in accordance with the Plan for each Performance
    Period shall be made to a Participant in cash within two and
    one-half
    (21/2)
    months following the Performance Period.

 

    9. Miscellaneous Provisions.

 

    (a) The Board of Directors of the Company shall have the
    right to suspend or terminate the Plan at any time and may amend
    or modify the Plan with respect to future Performance Periods
    prior to the beginning of any Performance Period,
    provided that no such amendment or modification which is
    expected to materially increase benefits payable to Participants
    under the Plan who are “covered employees” within the
    meaning of Section 162(m) of the Code (“Covered
    Employees”) shall be made unless such measures as the
    Committee deems necessary for the increased benefit to be
    deductible as qualified performance-based compensation pursuant
    to Section 162(m) of the Code have been taken.

 

    (b) Nothing contained in the Plan or any agreement related
    hereto shall affect or be construed as affecting the terms of
    the employment of any Participant except as specifically
    provided herein or therein. Nothing contained in the Plan or any
    agreement related hereto shall impose or be construed as
    imposing any obligation on (i) the Company or any Affiliate
    to continue the employment of any Participant or (ii) any
    Participant to remain in the employ of the Company or any
    Affiliate. The Company reserves the right to make bonus or other
    incentive awards to Participants under other plans maintained by
    the Company or otherwise as determined by the Company in its
    sole discretion, which other plans or arrangements need not be
    intended to meet the requirements of Section 162(m) of the
    Code.

 

    (c) No person shall have any claim to be granted an Award
    under the Plan and there is no obligation of uniformity of
    treatment of eligible employees under the Plan. Awards under the
    Plan may not be assigned or alienated.

    

 

    (d) The Company or Affiliate, as applicable, shall have the
    right to deduct from any Award to be paid under the Plan any
    federal, state or local taxes required by law to be withheld
    with respect to such payment.

 

    (e) If any provision of the Plan or an Award would cause
    the Awards granted to a Covered Employee not to be qualified
    “performance-based compensation” under
    Section 162(m) of the Code, that provision, insofar as it
    pertains to such Covered Employee, shall be severed from, and
    shall be deemed not to be a part of, the Plan or an Award, but
    the other provisions hereof shall remain in full force and
    effect.

 

    (f) It is intended that the Awards granted under the Plan
    shall be exempt from, or in compliance with, Section 409A
    of the Code. In the event any of the Awards issued under the
    Plan are subject to Section 409A of the Code, it is
    intended that no payment or entitlement pursuant to this Plan
    will give rise to any adverse tax consequences to a Participant
    under Section 409A of the Code. The Plan shall be
    interpreted to that end and, consistent with that objective and
    notwithstanding any provision herein to the contrary, the
    Company may unilaterally take any action it deems necessary or
    desirable to amend any provision herein to avoid the application
    of, or excise tax under, Section 409A of the Code provided
    that such action is consistent with the requirements of
    Section 162(m) of the Code. Neither the Company nor its
    current or former employees, officers, directors,
    representatives or agents shall have any liability to any
    current or former Participant with respect to any accelerated
    taxation, additional taxes, penalties, or interest for which any
    current or former Participant may become liable in the event
    that any amounts payable under the Plan are determined to
    violate Section 409A.

 

    (g) Notwithstanding anything herein to the contrary, to the
    extent required by Section 409A of the Code and Treasury
    regulations, upon a termination of employment (other than as a
    result of death) of a person determined by the Board of
    Directors of the Company (or a committee of the Board of
    Directors as such body shall delegate) to be a “specified
    employee” (within the meaning of Section 409A of the
    Code), distributions determined, in whole or in part, to
    constitute “nonqualified deferred compensation” within
    the meaning of Section 409A of the Code shall be delayed
    until six months after such termination of employment if such
    termination constitutes a “separation from service”
    (within the meaning of Section 409A(a)(2)(A)(i) of the Code
    and the Treasury regulations issued thereunder) and such
    distribution shall be made at the beginning of the seventh month
    following the date of the specified employee’s termination
    of employment.

 

    10. Adoption. The Plan initially became effective as
    of January 1, 1998 subject to approval by the shareholders
    of the Company which was obtained on April 28, 1998. The
    Plan was subsequently re-approved by the Company shareholders on
    April 2, 2003 and May 1, 2008, and was amended and
    restated in its entirety effective January 1, 2009 to
    comply with the provisions of Sections 409A and 162(m) of
    the Code and applicable guidance issued by the Treasury
    Department and the Internal Revenue Service. For the period from
    January 1, 2005 to December 31, 2008, the Plan was
    administered in good faith compliance with Section 409A of
    the Code and applicable guidance issued by the Treasury
    Department and the Internal Revenue Service. The Plan is hereby
    further amended and restated in its entirety effective
    January 1, 2009, subject to approval by the shareholders at
    the May 7, 2009 shareholders meeting.EX-4.1

Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to Issuer or its agent for registration of transfer,
exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

BECTON, DICKINSON AND COMPANY

5.000% Notes due May 15, 2019

			
	 	 	 
	CUSIP No. 075887 AU3	 	 
	 	 	 
	No. 1
	 	$500,000,000

     BECTON, DICKINSON AND COMPANY, a New Jersey corporation (such corporation, and its successors
and assigns under the Indenture hereinafter referred to, being herein called the “Company”) for
value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
$500,000,000 on May 15, 2019 and to pay interest, on May 15 and November 15 of each year,
commencing November 16, 2009, on said principal sum at the rate
of 5.000% per annum, from May 15,
2009 or from the most recent interest payment date to which interest has been paid or provided for,
as the case may be, until payment of said principal sum has been made or duly provided for;
provided, however, that payment of interest may be made at the option of the Company (i) by check
mailed to the address of the person entitled thereto as such address shall appear on the register
of Notes or (ii) by transfer in immediately available funds to an account maintained by the person
entitled thereto as specified in the register of Notes. The interest so payable on any May 15 or
November 15 will, subject to certain exceptions provided in the Indenture referred to on the
reverse hereof, be paid to the person in whose name this Note is registered at the close of
business on the May 1 or November 1 immediately preceding the applicable interest payment date.

     Reference is made to the further provisions of this Note set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the Indenture referred to on the
reverse hereof.

 

 

     IN WITNESS HEREOF, Becton, Dickinson and Company has caused this Note to be executed in its
name and on its behalf by the signatures of two of its officers authorized to execute Securities
pursuant to the Indenture and has caused its corporate seal to be affixed hereunto or imprinted
hereon.

Dated:
May 15, 2009

	 	 	 	 	 
	 	BECTON, DICKINSON AND COMPANY

 	 
	 	By:  	 	 
	 	 	David V. Elkins 	 
	 	 	Executive Vice President and Chief 

Financial Officer 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Richard K. Berman 	 
	 	 	Vice President and Treasurer 	 

 

 

	 	 	 	 	 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

This Note is one of the Securities of the series referred to herein issued pursuant to the
within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A.,

     as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

 

 

	 	 	 	 	 

[Reverse of Security]

BECTON, DICKINSON AND COMPANY

5.000% Notes due May 15, 2019

     This Note is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Company (herein called the “Securities”) of the series hereinafter specified,
all issued or to be issued under and pursuant to an Indenture, dated as of March 1, 1997 (as
amended or supplemented, herein called the “Indenture”), duly executed and delivered by the Company
and The Bank of New York Mellon Trust Company, N.A., as successor to JPMorgan Chase Bank (formerly
known as The Chase Manhattan Bank), as Trustee (herein called the “Trustee”), to which the
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, obligations and immunities thereunder of the
Company, the Trustee and the holders of the Securities. The Securities may be issued in one or
more series, which different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest (if any) at different rates, may be subject to
different redemption provisions (if any), may be subject to different sinking, purchase or
analogous funds (if any) and may otherwise vary as in the Indenture provided. This Note is one of
a series designated as the 5.000% Notes due May 15, 2019 (the “Notes”) limited in aggregate
principal amount to $500,000,000 (except as in the Indenture provided). The Company may, from time
to time, without the consent of the existing holders of the Notes, issue additional notes under the
Indenture having the same terms as the Notes in all respects, except for issue date, issue price
and the initial interest payment date. Any such additional notes will be consolidated with and
form a single series with the Notes. Terms defined in the Indenture have the same definitions
herein unless otherwise specified.

     In case an Event of Default, as defined in the Indenture, with respect to the Notes shall have
occurred and be continuing, the principal hereof and interest hereon may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the holders of the
Securities of any series at any time by the Company and the Trustee with the consent of the holders
of a majority in aggregate principal amount of the outstanding Securities of such series, each
affected series voting separately. The Indenture also contains provisions permitting the holders
of a majority in aggregate principal amount of the outstanding Securities of any series, on behalf
of the holders of all the Securities of such series, to waive certain past defaults under the
Indenture and their consequences. Any such consent or waiver by or on behalf of the holder of this

 

 

Note shall be conclusive and binding upon such holder and upon all future holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof whether or not notation of such consent or waiver is made upon this Note or such other Note.

     Subject to the terms of the Indenture, the Company may elect either (i) to defease and be
discharged from any and all obligations with respect to the Notes or (ii) to be released from its
obligations with respect to certain covenants applicable to the Notes, upon compliance by the
Company with certain conditions set forth therein, which provisions apply to this Note.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective times, at the rate and in
the coin or currency prescribed herein.

     The Notes are redeemable as a whole or in part at the option of the Company at any time, at a
redemption price equal to the greater of (1) 100% of the principal amount of the Notes to be
redeemed and (2) the sum of the present values of the Remaining Scheduled Payments on the Notes,
discounted to the redemption date on a semiannual basis, assuming a 360-day year consisting of
twelve 30-day months, at the Treasury Rate plus 30 basis points, plus in each case, accrued
interest to the date of redemption on the principal balance of the Notes being redeemed. For the
purposes hereof:

     “Treasury Rate” means, for any redemption date, the annual rate equal to the semiannual
equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue equal to the Comparable Treasury Price, expressed as a percentage of its principal
amount, for such redemption date. The yield of the Comparable Treasury Issue shall be computed as
of the second business day immediately preceding the redemption date.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker that would be used, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the applicable remaining term of the Notes being redeemed.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Trustee after consultation with the Company.

     “Reference Treasury Dealer” means each of the investment banks the Company may use to select a
Comparable Treasury Issue including Goldman, Sachs & Co. and Morgan Stanley & Co. Incorporated,
their successors and any two other nationally recognized investment banking firms that the Company
will appoint from time to time that are primary dealers of U.S. government securities

 

 

in New York City; provided, however, that if any of the firms ceases to be a primary dealer of
U.S. government securities in New York City, the Company shall appoint another nationally
recognized investment banking firm as a substitute therefor.

     “Comparable Treasury Price” means, for any redemption date, (1) the average of the Reference
Treasury Dealer Quotations obtained by the Trustee for that redemption date after excluding the
highest and lowest of those Reference Treasury Dealer Quotations; or (2) if the Trustee obtains
fewer than four Reference Treasury Dealer Quotations, the average of all those quotations.

     “Reference Treasury Dealer Quotation” means, with respect to any redemption date, the average,
as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue,
expressed in each case as a percentage of its principal amount, quoted in writing to the Trustee by
a Reference Treasury Dealer as of 3:30 p.m., New York time, on the third business day preceding
that redemption date. The Trustee shall seek Reference Treasury Dealer Quotations in respect of any
redemption date from each of the then-existing Reference Treasury Dealers.

     “Remaining Scheduled Payments” means, with respect to each note being redeemed, the remaining
scheduled payments of principal and interest on that Note that would be due after the related
redemption date but for the redemption; provided, however, that if the redemption date is not an
interest payment date with respect to that Note, the amount of the next succeeding scheduled
interest payment on that Note that would have been due will be deemed reduced by the amount of
interest accrued on the Note to the redemption date.

     Notice of any redemption shall be mailed at least 30 days but not more than 60 days before the
redemption date to each holder of the Notes or portions thereof called for redemption. On and
after any redemption date, the Notes or any portion of the Notes called for redemption will stop
accruing interest. On or before any redemption date, the Company will deposit with the paying
agent or the Trustee money sufficient to pay the accrued interest on the Notes to be redeemed and
their redemption price. If less than all of the Notes are redeemed, the Trustee will choose the
Notes to be redeemed by any method that it deems fair and appropriate.

     Upon the presentment for registration of transfer of this Note at the office or agency of the
Company designated for such purpose pursuant to the Indenture, a new Note or Notes of authorized
denominations for an equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge except for any tax
or other governmental charge imposed in connection therewith.

     Prior to due presentment for registration of transfer of this Note, the Company, the Trustee
or any Note registrar, co-registrar, paying agent or authenticating agent, may deem and treat the
registered holder hereof as the
absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any
notation of ownership or other writing hereon), for the purpose of receiving payment hereof, or on
account hereof, and for all other purposes, and the Company, the Trustee and any Note registrar,
co-registrar, paying agent and authenticating agent shall not be affected by any notice to the
contrary.

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