Document:

Ex-10.6

 

Exhibit 10.6

ENPRO INDUSTRIES, INC.

LONG-TERM INCENTIVE PLAN

PURPOSE

     The EnPro Industries, Inc. Long-Term Incentive Plan (the “Plan”) has been
established effective as of January 1, 2003 (the “Effective Date”) to provide
long-term incentive compensation to key employees who are in a position to
influence the performance of EnPro Industries, Inc. (the “Company”), and
thereby enhance shareholder value over time. The Plan provides a significant
additional financial opportunity and complements other parts of the Company’s
total compensation program for key employees (base salary, annual performance
plan, stock options and benefits).

ELIGIBILITY AND PERFORMANCE PERIODS

     The Committee (as defined in the “Plan Administration” section of the
Plan) will determine which employees of the Company are eligible to participate
in the Plan from time to time. Participants will be selected within 90 days
after the beginning of each multi-year performance cycle (“Performance
Period”). Each Performance Period will be of two or more years duration as
determined by the Committee and will commence on January 1 of the first year of
the Performance Period. A new Performance Period will commence each year
unless the Committee determines otherwise.

TARGET AWARDS

     At the time a Participant is selected for participation in the Plan for a
Performance Period, the Committee will assign the Participant a Target LTIP
Award to be earned if the Company’s target performance levels are met for the
Performance Period (the “Target LTIP Award”). The Target LTIP Award may be
expressed as a dollar amount, a number of Performance Shares under the
Company’s Equity Compensation Plan, or a combination of a dollar amount and a
number of Performance Shares. Any portion of the Target LTIP Award made in the
form of Performance Shares will be evidenced by a Performance Shares award
agreement consistent with the provisions of the Equity Compensation Plan.

MAXIMUM AND THRESHOLD AWARDS

     At the time a Participant is selected for participation in the Plan for a
Performance Period, the Participant will be assigned maximum and threshold
award levels, expressed as a percentage of the Target LTIP Award. Maximum
award level represents the maximum percentage of the Target LTIP Award that may
be paid to a Participant for a Performance Period based on performance above
target performance levels. Threshold award level represents the minimum
percentage of the Target LTIP Award that may be paid to a Participant for a
Performance Period based on performance below target performance levels.
Performance below the threshold performance award level will earn no incentive
payments.

 

 

     Under no circumstances will any Participant earn an award for a
Performance Period expressed in dollars exceeding $2,500,000. In addition, any
award of Performance Shares hereunder shall be subject to the individual award
limit applicable under the Equity Compensation Plan.

PERFORMANCE MEASURES

     Performance measures that may be used under the Plan include Net Income,
Pretax Income, Consolidated Operating Income, Segment Operating Income, Return
on Equity, Operating Income Return on Net Capital Employed, Return on Assets,
Cash Flow (with or without regard to asbestos), Working Capital, Share
Appreciation, Total Shareholder Return relative to the manufacturing companies
within the S&P 400 index, Total Business Return (calculated utilizing Earnings
Before Interest, Taxes, Depreciation and Amortization and cash flow) and
Earnings per Share of Common Stock of the Company for the Plan Year.

PERFORMANCE GOALS

     The Committee will designate, within 90 days of the beginning of each
Performance Period:

	 	•	 	The performance measures and calculation methods to be
used for the Performance Period;
	 
	 	•	 	A schedule for each performance measure relating
achievement levels for the performance measure to incentive
award levels as a percentage of Participants’ Target LTIP
Awards; and
	 
	 	•	 	The relative weightings of the performance measures
for the Performance Period.

     The performance goals established by the Committee for a Performance
Period are intended to satisfy the “objective compensation formula”
requirements of Treasury Regulations Section 1.162-27(e)(2).

PERFORMANCE CERTIFICATION

     As soon as practicable following the end of each Performance Period and
prior to any award payments for the Performance Period, the Committee will
certify the Company’s performance with respect to each performance measure used
for that Performance Period.

AWARD CALCULATION AND PAYMENT

     For each Performance Period, individual incentive awards will be
calculated and paid to each Participant who is still employed with the Company
(subject to the special provisions below for employees who terminate employment
due to death, disability or retirement) as soon as practicable following the
Committee’s certification of performance for the Performance Period. The
amount of a Participant’s incentive award to be paid based on each individual
performance measure will be calculated based on the following formula:

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	Participant’s
Target LTIP Award	 	
X
	 	Percentage of
target award to be
paid based on
performance measure
results
	 	X
	 	Relative weighting
of performance
measure
	 	=
	 	Amount of incentive
award based on
performance measure
results

The incentive amounts to be paid to the Participant based on each performance
measure will be summed to arrive at the Participant’s total incentive award
payment for the Performance Period.

     Payments from the Plan to a Participant, if any, will be made in cash
(less any amount necessary to satisfy applicable withholding taxes); provided,
however, that (i) if any portion of the award is in the form of Performance
Shares, the applicable Performance Shares award agreement will specify whether
the award will be settled in cash, shares of the Company’s common stock or a
combination of cash and stock; and (ii) at the Participant’s election, receipt
of all or part of an award may be deferred under the terms of the EnPro
Industries, Inc. Deferred Compensation Plan (or other deferred compensation
plan of the Company).

TERMINATION OF EMPLOYMENT DUE TO DEATH, DISABILITY, RETIREMENT

     If a Participant becomes totally disabled under the Company’s Long-Term
Disability Plan, or retires (or is deemed to retire) under the Company’s
Salaried Retirement Plan during a Performance Period, the Participant will
receive a pro rata payout at the end of the Performance Period, based upon the
time portion of the Performance Period during which he or she was employed.
The actual payout will not occur until after the end of the Performance Period,
at which time the financial performance for the entire Performance Period will
be used to determine the amount of the award prior to proration.

     If a Participant dies during a Performance Period, the Participant will
receive a pro rata payout based upon financial results calculated for the
portion of the Performance Period through the end of the fiscal quarter
following the Participant’s death.

OTHER TERMINATION OF EMPLOYMENT

     If a Participant’s employment terminates prior to the end of a Performance
Period for any reason (whether voluntary or involuntary) other than death,
disability or retirement, the Participant will forfeit all rights to
compensation under the Plan, unless the Committee determines otherwise.

NEW HIRES OR PROMOTIONS INTO ELIGIBLE POSITIONS

     Participants will become eligible for participation in the Plan at their
new position level beginning with the Performance Period which begins on the
January 1 immediately following their hire or promotion date. No new
performance awards or adjustments to awards for Performance Periods that
commenced prior to a Participant’s hire or promotion date will be made.

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PAYMENT UPON CHANGE IN CONTROL

     Anything to the contrary notwithstanding, if a Change in Control occurs
prior to the end of a Performance Period, within five days following the
occurrence of the Change in Control each Participant will receive a pro rata
payout of the Participant’s award for that Performance Period based upon the
portion of the Performance Period completed through the date of the Change in
Control and the performance results calculated for that period (the “Interim
LTIP Payment”). The Participant shall also remain entitled to a payout upon
completion of the Performance Period based on performance results for the
entire Performance Period, such payout to be offset be the amount of the
Interim LTIP Payment (if any); provided, however, that the Participant will not
be required to refund to the Company, or have offset against any other payment
due to the Participant from or on behalf of the Company, in the event the
amount of the Interim LTIP Payment exceeds the amount of the payout upon
completion of the Performance Period.

     For purposes of the Plan, 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 in
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 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 Effective Date, constitute
the Board of Directors (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a
director subsequent to the Effective Date whose election, or
nomination for election

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	 	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; 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
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.

PLAN ADMINISTRATION

     The Plan will be administered by the Compensation and Human Resources
Committee of the Company’s Board of Directors (or a subcommittee of that
committee consisting only of those members of that committee who are “outside
directors” within the meaning of Section 162(m) of the Internal revenue Code if
any members of the committee are not “outside directors”) (the “Committee”).
In administering the Plan, the Committee shall be empowered to interpret the
provisions of the Plan and to perform and exercise all of the duties and powers
granted to it under the terms of the Plan by action of a majority of its
members in office from time to time. The Committee is empowered to set
preestablished performance targets, measure the results and determine the
amounts payable according to the Formula. While the Committee may not increase
the amounts payable under the Plan formula for a Performance Period, it retains

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discretionary authority to reduce the amount of compensation that would
otherwise be payable
to the Participants if the goals are attained. The Committee may also adopt
such rules and regulations for the administration of the Plan as are consistent
with the terms hereof and shall keep adequate records of its proceedings and
acts. All interpretations and decisions made (both as to law and fact) and
other action taken by the Committee with respect to the Plan shall be
conclusive and binding upon all parties having or claiming to have an interest
under the Plan. Not in limitation of the foregoing, the Committee shall have
the discretion to decide any factual or interpretative issues that may arise in
connection with its administration of the Plan (including without limitation
any determination as to claims for benefits hereunder), and the Committee’s
exercise of such discretion shall be conclusive and binding on all affected
parties as long as it is not arbitrary or capricious.

MISCELLANEOUS

     (i)  Amendment and Termination. The Board of Directors of the Company may
amend, modify, or terminate the Plan at any time, provided that no amendment,
modification or termination of the Plan shall reduce the amount payable to a
Participant under the Plan as of the date of such amendment, modification or
termination.

     (ii)  Shareholder Approval. No amounts shall be payable hereunder unless
the material terms of the Plan are first approved by the shareholders of the
Company consistent with the requirements of Section 162(m) of the Internal
Revenue Code. In accordance with Section 162(m)(4)(C)(ii) of the Internal
Revenue Code, the continued effectiveness of the Plan is subject to its
approval by the shareholders of the Company at such other times as required by
Section 162(m)(4)(C)(ii).

     (iii)  Coordination With Other Company Benefit Plans. Any income
participants derive from Plan payouts will not be considered eligible earnings
for Company or subsidiary pension plans, savings plans, profit sharing plans or
any other benefit plans.

     (iv)  Participant’s Rights. A Participant’s rights and interests under the
Plan may not be assigned or transferred by the Participant. To the extent the
Participant acquires a right to receive payments from the Company under the
Plan, such right shall be no greater than the right of any unsecured general
creditor of the Company. Nothing contained herein shall be deemed to create a
trust of any kind or any fiduciary relationship between the Company and the
Participant. Designation as a Participant in the Plan for a Performance Period
shall not entitle or be deemed to entitle the Participant to be designated as a
Participant for any subsequent Performance Periods or to continued employment
with the Company.

     (v)  Applicable Law. The Plan shall be governed and construed in
accordance with the laws of the State of North Carolina, except to the extent
such laws are preempted by the laws of the United States of America.

6Ex-10.9

 

Exhibit 10.9

ENPRO INDUSTRIES, INC.

DEFERRED COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

(as amended and restated effective March 1, 2004)

     1.     INTRODUCTION. EnPro Industries, Inc. (the “Company”) maintains the
EnPro Industries, Inc. Deferred Compensation Plan for Non-Employee Directors
(the “Plan”). This document constitutes an amendment and restatement of the
Plan effective March 1, 2004. It is the intent of the Company that amounts
deferred under the Plan by a Non-Employee Director shall not be taxable to the
Non-Employee Director for income tax purposes until the time they are actually
received by the Non-Employee Director. The provisions of the Plan shall be
construed and interpreted to give effect to this intent.

     2.     DEFINITIONS.

     “Accounts” of a Participant mean collectively the Participant’s Cash
Account and Stock Account.

     “Board” means the members of the Board of Directors of the Company.

     “Cash Account” means the account maintained in dollars on the books of the
Company to record a Participant’s interest under the Plan attributable to any
amounts deferred by the Participant into the Cash Account pursuant to Section
6(b) below, as adjusted from time to time pursuant to the terms of the Plan.

     “Common Stock” means the common stock of the Company.

     “Company” is defined in Section 1 as EnPro Industries, Inc. and
includes any successor thereto.

     “Fair Market Value” of a share of Common Stock shall be the mean of the
high and low prices of Common Stock on the relevant date (as of 4:00 P.M.
Eastern Standard Time) as reported on the New York Stock Exchange — Composite
Transactions listing (or similar report), or, if no sale was made on such date,
then on the next preceding day on which such a sale was made.

     “Meeting Fees” means the fees a Non-Employee Director receives for
attending meetings of the Board and any committee of the Board, as well as any
fee a Non-Employee Director receives for serving as chairman of any committee
of the Board.

     “Non-Employee Directors” means members of the Board who are not employees
of the Company or any affiliate of the Company.

     “Participant” means any Non-Employee Director who makes an election to
participate in the Plan in accordance with Section 5. Participant shall also
include any former Non-Employee Director who continues to have an Account
maintained under the Plan.

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     “Plan” is defined in Section 1 as this plan: the EnPro Industries, Inc.
Deferred Compensation Plan for Non-Employee Directors, as the same may be
amended from time to time.

     “Plan Administrator” means a committee consisting of the Chief Executive
Officer of the Company and two other officers of the Company selected by him.

     “Plan Year” means a calendar year, provided that the first Plan Year shall
commence on the effective date of the Plan and end on December 31, 2002.

     "Retainer” means the cash portion of the annual retainer paid by the
Company to a Non-Employee Director, and does not include the portion of the
annual retainer (if any) paid in the form of “Performance Shares.”

     “Stock Account” means the account maintained in Stock Units on the books
of the Company to record a Participant’s interest under the Plan attributable
to any amounts deferred by the Participant into the Stock Account pursuant to
Section 6(b) below, as adjusted from time to time pursuant to the terms of the
Plan.

     “Stock Unit” means a unit having a value as of a given date equal to the
Fair Market Value of one (1) share of Common Stock on such date.

     3.     ADMINISTRATION. The Plan shall be administered by the Plan
Administrator. In that regard, the Plan Administrator shall be empowered to
interpret the provisions of the Plan and to perform and exercise all of the
duties and powers granted to it under the terms of the Plan. The Plan
Administrator may adopt such rules and regulations for the administration of
the Plan as are consistent with the terms hereof and shall keep adequate
records of its proceedings and acts. All interpretations and decisions made
(both as to law and fact) and other action taken by the Plan Administrator with
respect to the Plan shall be conclusive and binding upon all parties having or
claiming to have an interest under the Plan. Not in limitation of the
foregoing, the Plan Administrator shall have the discretion to decide any
factual or interpretative issues that may arise in connection with its
administration of the Plan (including without limitation any determination as
to claims for benefits hereunder), and the Plan Administrator’s exercise of
such discretion shall be conclusive and binding on all affected parties as long
as it is not arbitrary or capricious. The Plan Administrator may delegate any
of its duties and powers hereunder to the extent permitted by applicable law.

     4.     PARTICIPATION. Each Non-Employee shall become a Participant in the
Plan by filing the written Election Form described in Section 5 with the Plan
Administrator with respect to Retainers and Meeting Fees payable to the
Non-Employee Director for such Non-Employee Director’s services as a member of
the Board. If a person ceases to be a Non-Employee Director but continues to
serve as a Director, the person shall no longer be eligible to make deferral
elections under the Plan.

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     5.     DEFERRAL ELECTIONS.

     (a)  Elections to Defer. Each Participant may elect to defer receipt of
all or a portion of such Participant’s Retainer and Meeting Fees at such times
and pursuant to such procedures as set forth in paragraph (b) of this Section
5, such amounts to be credited to the Participant’s Accounts as described in
Section 6 and to become payable in accordance with the provisions of Section 7.

     (b)  Form and Timing of Elections. To be effective, elections to defer all
or any portion of the Retainer or Meeting Fees for a Plan Year must be made on
such form and pursuant to such procedures as the Plan Administrator may
establish from time to time. The election must be made prior to the start of
the applicable Plan Year or at such other times as the Plan Administrator may
determine (consistent with the purpose of the Plan set forth in Section 1). An
election to defer for a Plan Year shall continue in effect for each subsequent
Plan Year unless revoked or modified by the Participant in accordance with
procedures established by the Plan Administrator.

     6.     ESTABLISHMENT OF AND ADJUSTMENT OF ACCOUNTS.

     (a)  Establishment of Accounts. The Company shall establish and maintain a
Cash Account and a Stock Account for each Participant. Each Account shall be
designated by the name of the Participant for whom established. Each Account
shall be maintained on the books of the Company until full payment of the
balance thereof has been made to the applicable Participant (or the
beneficiaries of a deceased Participant). No funds shall be set aside or
earmarked for any Account, which shall be purely a bookkeeping device.

     (b)  Direction of Deferrals into Cash Account or Stock Account. Any amount
deferred by a Participant shall be credited to the Participant’s Cash Account
or Stock Account as the Participant shall elect at such times, on such forms
and pursuant to such procedures as the Plan Administrator may establish from
time to time in accordance with Section 5(b). If no election is made, any
amount deferred shall be credited to the Participant’s Cash Account. To the
extent any amount is to be credited to a Participant’s Cash Account, such
amount shall be credited to the Cash Account as of the date the amount would
have otherwise been paid to the Participant. To the extent any amount is to be
credited to a Participant’s Stock Account, the Stock Account shall be credited
as of the date the amount would have otherwise been paid to the Participant
with the number of whole and fractional Stock Units equal to the applicable
dollar amount divided by the Fair Market Value of a share of Common Stock on
such date. A Participant may not subsequently reallocate amounts between the
Cash Account and Stock Account after the deferrals have been credited.

     (c)  Account Adjustments: Cash Account. The Plan Administrator shall
designate from time to time one or more investment vehicle(s) in which the Cash
Accounts of Participants shall be deemed to be invested. The investment
vehicle(s) may be designated by reference to the deemed investments available
under the management deferred compensation plan. Each Participant shall
designate the investment vehicle(s) in which his or her Cash Account shall be

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deemed to be invested according to the procedures developed by the Plan
Administrator, except as otherwise required by the terms of the Plan. The
Company shall not be under any obligation to acquire or invest in any of the
deemed investment vehicle(s) under this subparagraph, and any acquisition of or
investment in a deemed investment vehicle by the Company shall be made in the
name of the Company and shall remain the sole property of the Company. The
Plan Administrator shall also establish from time to time a default fund into
which a Participant’s Cash Account shall be deemed to be invested if the
Participant fails to provide investment instructions pursuant to this Section
6(c).

     The intervals at which each Cash Account shall be adjusted shall be as
determined by the Plan Administrator from time to time. The Plan Administrator
may determine the frequency of Cash Account adjustments by reference to the
frequency of account adjustments under the management deferred compensation
plan. The amount of the adjustment shall equal the amount that the
Participant’s Cash Account would have earned (or lost) for the period since the
last adjustment had the Cash Account actually been invested in the deemed
investment vehicle(s) designated by the Participant for such period pursuant to
this Section 6(c).

     (d)  Account Adjustments: Stock Account. Each Stock Account shall be
credited additional whole or fractional Stock Units for cash dividends paid on
the Common Stock based on the number of Stock Units in the Stock Account on the
applicable dividend record date and calculated based on the Fair Market Value
of the Common Stock on the applicable dividend payment date. Each Stock
Account shall
also be equitably adjusted as determined by the Plan Administrator in the
event of any stock dividend, stock split or similar change in the
capitalization of the Company.

     7.     PAYMENT.

     (a)  Payment Options. At the time a Participant first makes an election to
defer a Retainer or Meeting Fees under the Plan, the Participant shall be given
the opportunity to elect one of the following payment options: (i) a single
payment, (ii) annual installments over a period of 5 years, or (iii) annual
installments over a period of 10 years. A Participant’s payment election shall
be made on the election form used by the Participant for making such
Participant’s initial deferral election. Such election shall be effective with
respect to all payments of Retainers and Meeting Fees deferred under the Plan
by the Participant. If a Participant fails to duly elect a payment option, the
method of payment shall be a single payment. After the initial deferral
election, a Participant may elect one of the other payment options listed above
on such form and pursuant to such procedures as established by the Plan
Administrator from time to time, provided that any such election may not become
effective until at least six (6) months after the election is made and only if
the Participant continues to serve as a Director through such effective date.
Only one new payment election may be submitted during any Plan Year. Upon
becoming effective, the new payment election shall apply with respect to all
amounts deferred under the Plan by the Participant, including amounts deferred
under the Plan before the election became effective.

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     (b)  Single Payment. If a Participant to whom the single payment applies
terminates service as a member of the Board, such Participant’s Accounts shall
continue to be adjusted under Section 6 through the end of the calendar year in
which such termination occurs. The final balance of the Participant’s Accounts
as of such date shall be paid in a single payment to the Participant (or to the
Participant’s designated beneficiary if the Participant dies prior to
distribution of such Participant’s Account) by January 31 of the following
calendar year. The Cash Account shall be payable in cash, and the Stock
Account shall be payable by delivery of one share of Common Stock for each
whole Stock Unit, with cash for any fractional Stock Unit (based on the Fair
Market Value of the Common Stock as of December 31 of the calendar year in
which termination occurs).

     (c)  Annual Installments. If a Participant to whom the annual installments
method applies terminates service as a member of the Board, the amount of such
annual installments shall be calculated and paid pursuant to the provisions of
this Section 7(c). The Participant’s Accounts shall continue to be credited
with adjustments under Sections 6 above until the Accounts are fully paid out.
The first installment shall be paid by January 31 of the calendar year
immediately following the calendar year in which such termination of services
occurs, and each subsequent installment shall be paid by January 31 of each
subsequent calendar year. Each payment shall be equal to (i) the sum of the
Participant’s balance in each Account as of December 31 of the calendar year
immediately preceding the calendar year of payment, multiplied by (ii) a
fraction, the numerator of which is one and the denominator is the number of
installments remaining, including the current year’s payment. The portion of
each installment payable from the Cash Account shall be paid in cash, and the
portion of each installment payable from the Stock Account shall be payable by
delivery of one share of Common Stock for each whole Stock Unit, with cash for
any fractional Stock Unit (based on the Fair Market Value of the Common Stock
as of December 31 of the calendar year immediately preceding the calendar year
of payment). In the event of the Participant’s death, any remaining annual
installments shall be paid to the Participant’s designated beneficiary.

     (d)  Other Payment Provisions. Subject to the provisions Section 8, a
Participant shall not be paid any portion of the Participant’s Accounts prior
to the Participant’s termination of service as a member of the Board. Any
payment hereunder shall be subject to applicable withholding taxes. If any
amount becomes payable under the provisions of the Plan to a Participant,
beneficiary or other person who is a
minor or an incompetent, whether or not declared incompetent by a court,
such amount may be paid directly to the minor or incompetent person or to such
person’s legal representative (or attorney-in-fact in the case of an
incompetent) as the Plan Administrator, in its sole discretion, may decide, and
the Plan Administrator shall not be liable to any person for any such decision
or any payment pursuant thereto. Participants shall designate a beneficiary
under the Plan on a form furnished by the Plan Administrator, and if a
Participant does not have a beneficiary designation in effect, the designated
beneficiary shall be the Participant’s estate.

     (e)  Account Statements. Each Participant shall receive an annual
statement of the balance in the Participant’s Accounts.

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     8.     TERMINATION AND AMENDMENT. The Board may terminate the Plan at any
time so that no further amounts shall be credited to Accounts or may, from time
to time, amend the Plan, without the consent of Participants or beneficiaries;
provided, however, that no such amendment or termination shall reduce the
amount actually credited to a Participant’s Accounts under the Plan on the date
of such amendment or termination or further defer the due dates for the payment
of such amounts without the consent of the affected Participant or beneficiary.
Notwithstanding any provision of the Plan to the contrary, in connection with
any termination of the Plan the Board shall have the authority to cause the
Accounts of all Participants to be paid in a single payment as of a date
determined by the Board or to otherwise accelerate the payment of Accounts in
such manner as the Board shall determine in its discretion.

     9.     APPLICABLE LAW. The Plan shall be construed, administered, regulated
and governed in all respects under and by the laws of the United States to the
extent applicable, and to the extent such laws are not applicable, by the laws
of the state of North Carolina.

     10.     COMPLIANCE WITH LAWS AND REGULATIONS. Notwithstanding any other
provisions of this Plan, the issuance or delivery of any shares of Common Stock
may be postponed for such period as may be required to comply with any
applicable requirements of any national securities exchange or any requirements
under any other law or regulation applicable to the issuance or delivery of
such shares, and the Company shall not be obligated to issue or deliver any
such shares if the issuance or delivery thereof shall constitute a violation of
any provision of any law or any regulation of any governmental authority,
whether foreign or domestic, or any national securities exchange.

     11.     MISCELLANEOUS. A Participant’s rights and interests under the Plan
may not be assigned or transferred by the Participant. The Plan shall be an
unsecured, unfunded arrangement. To the extent the Participant acquires a
right to receive payments from the Company under the Plan, such right shall be
no greater than the right of any unsecured general creditor of the Company.
The Company shall not be required to segregate any amounts credited to any
Accounts, which shall be established merely as an accounting convenience.
Nothing contained herein shall be deemed to create a trust of any kind or any
fiduciary relationship between the Company and any Participant. The Plan shall
be binding on the Company and any successor in interest of the Company.

     IN WITNESS WHEREOF, this instrument has been executed by an authorized
officer of the Company as of the 27th day of February, 2004.

	 	 	 	 	 	 	 
	 	 	
 	 	 	 	 
	 	 	 	 	ENPRO INDUSTRIES, INC.	 	 

	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	     /s/ Richard C. Driscoll
	 	 	 	 	 	 	

	 	 	 	 	 	 	Name:  Richard C. Driscoll

Title:    Senior Vice President

6

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