Document:

United States Pipe and Foundry Company, LLC Special Incentive Award Program

 Exhibit 10.29 
 SPECIAL INCENTIVE AWARD PROGRAM FOR 
 SELECTED EMPLOYEES OF U.S. PIPE

 ARTICLE I 
 ESTABLISHMENT AND PURPOSE 
 1.1 Establishment. United
States Pipe and Foundry Company, LLC, an Alabama limited liability company (the “Company”), hereby establishes the Special Incentive Award Program (the “Program”), as set forth herein, for the benefit of an Eligible Employee (as
herein defined) of the Employer. The Program has been approved by the Compensation and Human Resources Committee of MWP (as herein defined), as the Administrator (as herein defined) of the Program, and implemented by duly authorized officers of the
Company. 
 1.2 Purpose. The Company established the Program to reward and retain an Eligible Employee with a cash
award provided the Eligible Employee remains employed through certain specified dates and upon the occurrence of certain events before those dates. The Company intends the Program to be a “bonus program” within the meaning of Department of
Labor Regulation section 2510.3-2(c). 
 1.3 Administrator Approval. Any Additional Incentive Awards (as defined
in Section 3.3) granted under the Program are issued as incentive awards under the Management Incentive Plan (as herein defined) and any payment of such Award requires that the Committee have met the terms of the Plan and certified performance
over the applicable period. 
 ARTICLE II 
 DEFINITIONS 
 2.1 “Administrator” means the
Chairman of the Board, as the designee of the Compensation and Human Resources Committee of the Board, as the administrator of the Program. In the event of a Change in Control of the Company, the Administrator means the entity or person designated
by the Successor to administer the Program. 
 2.2 “Award” means a Special Incentive Award or an
Additional Incentive Award, as such terms are defined in Article III. 
 2.3 “Board” means the Board of
Directors of MWP. 
 2.4 “Cause” means an Eligible Employee’s (a) conviction of a felony or
any other crime or act involving dishonesty, fraud or moral turpitude; (b) fiduciary breach against MWP, the Company or the Successor; (c) action in violation of the MWP Code of Business Conduct and Ethics or other material policy of MWP
or the Company, (d) failure to adequately perform his or her duties; (e) negligence in the performance of his or her duties. 
 2.5 “Change in Control” shall mean (a) any person (other than MWP or any affiliate of MWP and any trustee or other fiduciary holding securities under an employee benefit plan
of the Company) becomes the beneficial owner, directly or indirectly, of membership interests of Company representing a Majority Controlling Interest of the Company or (b) the Company sells or disposes of a Majority Controlling Interest of the
Company’s assets to any person that is not an affiliate of the Company (or any transaction or series of transactions having a similar effect). 

 2.6 “Company” means United States Pipe and Foundry Company, LLC, an
Alabama limited liability company. 
 2.7 “Effective Date” means the effective date of a Change in
Control of the Company at any time before April 30, 2012. 
 2.8 “Eligible Employee” means an
Employee who is notified in writing that he or she is eligible to participate in the Program and who executes an agreement in the form attached as Exhibit A. As specifically provided in Article VII, the Administrator has the sole discretion to
determine whether an individual is an Eligible Employee. Such determination is conclusive and binding on all parties notwithstanding any contrary determination by any court or governmental agency including, but not limited to, the Internal Revenue
Service. 
 2.9 “Employee” means an employee of the Company. 

2.10 “Majority Controlling Interest” means ownership of more than eighty percent (80%) of the combined
voting power of the Company’s then outstanding membership or similar interests or more than eighty percent (80%) of the Corporation’s assets determined by book value, or in either case such lesser percentage in excess of 51% that
shall be deemed by MWP’s Compensation and Human Resources Committee to be a Majority Controlling Interest. 
 2.11
“Management Incentive Plan” means the MWP 2010 Management incentive Plan, as adopted by its stockholders. 

2.12 “MWP” means Mueller Water Products, Inc. 

2.13 “Successor” means the successor to the Company following a Change in Control. 

ARTICLE III 

ELIGIBILITY AND PARTICIPATION 
 3.1 General Eligibility. An Employee who is notified in writing that he or she is eligible to participate in the Program shall become an Eligible Employee upon the date the Employee executes
the eligibility agreement attached as Exhibit A, and an Eligible Employee shall be entitled to receive the Awards set forth herein provided the business of the Company has been operated in the ordinary course at all times prior to the Effective Date
and the conditions to such reward are otherwise met as set forth below. In addition, each Eligible Employee is subject to a strict fiduciary duty of loyalty to the Company and MWP at all times until the Effective Date and shall not breach that duty
of loyalty in any respect, through agreements, oral understandings or otherwise. Whether the business of the Company has been operated in the ordinary course and whether any Eligible Employee had breached a duty of loyalty to the Company or MWP
shall be based on the sole discretion of the Compensation and Human Resources Committee of MWP, acting as the Administrator, and any Successor shall not have the authority to make such a determination. 

  
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 3.2 Special Incentive Award Eligibility. An Eligible Employee shall be
entitled to receive a Special Incentive Award if a Change in Control occurs prior to April 30, 2012 and the Eligible Employee has remained an Employee through the Effective Date, provided, however, that if an Eligible Employee’s employment
has been terminated by any action by the Company without Cause prior to the Effective Date, he or she shall be deemed to have been an Employee on the Effective Date for the sole purpose of determining whether that Eligible Employee was eligible for
a Special Incentive Award. If the Eligible Employee’s employment terminates for any other reason prior to the Effective Date (including a termination due to death, disability, retirement, resignation, or otherwise), he or she shall not be
eligible to receive a Special Incentive Award. 
 3.3 Additional Incentive Award Eligibility. An Eligible Employee
shall be entitled to receive an Additional Incentive Award if (A) the Eligible Employee is eligible for the Special Incentive Award and (B) the Company meets targeted goals to be set by the Administrator for the Performance Period.
Such goals shall be established as provided in the Management Incentive Plan. The Additional Incentive Award shall be determined by MWP’s Compensation and Human Resources Committee, and not by any Successor. 

ARTICLE IV 

PAYMENT DATE 
 4.1 Award Payment Dates. The Company or the Successor, as the case may be, shall pay each Special Incentive Award as soon as administratively feasible after the Effective Date, but in no
event later than a date that is thirty (30) days following the Effective Date. The Company or the Successor, as the case may be, shall pay each Additional Incentive Award as soon as administratively feasible after the Effective Date, but in no
event later than a date that is thirty (30) days following the Effective Date, or, if the amount of the Additional Incentive Award has cannot be determined by MWP’s Compensation and Human Resources Committee prior to that date, within
thirty (30) days after such determination (which, if the Effective Date occurs in calendar year 2011 shall in no event be later than March 15, 2012). 
 ARTICLE V 
 UNFUNDED STATUS OF AWARD 

5.1 Unfunded Status of Award. Each award payable under this Program is a bookkeeping entry only. No entity shall set aside
any assets to pay any amounts under the Program. No Eligible Employee shall have an interest in any particular assets of the Company, the Successor, or any subsidiary or affiliate of the Company or the Successor by reason of the right to receive an
award under this Program. An Eligible Employee with a right to receive an award under this Program shall have only the rights of a general unsecured creditor of the Company. 
 ARTICLE VI 
 NO VESTED RIGHTS 

6.1 No Vested Right. No Eligible Employee shall have a vested right to any amount under the Program before the applicable
dates set forth in Article III. The Company intends this 

  
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document to set forth the terms and conditions pursuant to which an Eligible Employee may become entitled to an award. Neither this document nor the Program generally is a contract between the
Eligible Employee and any other person or entity. 
 ARTICLE VII 

ADMINISTRATION 
 7.1 Administration. The Administrator administers the Program. The Administrator has the full power to construe, interpret and make all determinations under the Program including, but not
limited to, the determination (a) whether an individual is an Eligible Employee; (b) the amount of each award under the Program; and (c) whether the Eligible Employee has met any requirement under the Program. The Administrator has
the full power to establish, amend and waive rules for the Program’s administration. All determinations and decisions the Administrator makes under the Program are binding on all persons including the Company and the Successor. No individual
shall be entitled to receive an award unless the Administrator determines, in its sole discretion, that the individual has met the Program’s requirements to receive an award. 

ARTICLE VIII 
 SUCCESSORS AND ASSIGNS 
 8.1 Successors and Assigns.
All obligations of the Company under the Program shall be binding on any successor to the Company. Upon a Change in Control, the Successor shall assume sponsorship of the Program and any obligation or liability which remains as of such date
including, but not limited to, the obligation to pay a Special Incentive Award and an Additional Incentive Award. 
 ARTICLE
IX 
 MISCELLANEOUS 
 9.1 General Rights. Subject to the following sentence, the Company may amend, suspend or terminate the Program at any time and from time to time by action of the Board. Notwithstanding the
preceding sentence, neither the Company nor the Successor may amend the Program to negatively affect any award that has been issued under the Program, or at any time after the Effective Date, without the prior written consent of the Participant.
Notwithstanding any provision in this Program to the contrary, the Program shall terminate as of the date all liabilities are satisfied hereunder. 
 MWP, as the current owner of all the membership interests in the Company, is a third party beneficiary of the Program. The amounts paid hereunder shall be unique for this Program, and not be counted
toward determining amounts payable under any other plan, program or agreement of MWP or the Company. 
 9.2 Taxes.
The Company shall deduct or withhold all amounts necessary to satisfy federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of the Program. 

  
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 Notwithstanding anything to the contrary herein, if an Eligible Employee is a
“specified employee” under Section 409A of the Code, then any payment(s) to that Eligible Employee hereunder that (A) are not exempt from Section 409A and (B) are otherwise payable within 6 months after the Eligible
Employee’s termination of employment shall instead be made on the date 6 months and 1 day after such termination of employment, and such payment(s) shall be increased by an amount equal to interest on such payment(s) at a rate of interest equal
to the Federal Funds Rate in effect as of the date of termination of employment from the date on which such payment(s) would have been made in the absence of this provision and the payment date described in this sentence. 

9.3 Anti-Assignment. No Eligible Employee may sell, assign, transfer, discount, pledge as collateral for a loan or
otherwise anticipate the right to any payment under the Program. 
 9.4 Clawback. If the Administrator, Board, the
Company or the Successor determines that it overpaid an Eligible Employee or paid an Eligible Employee an award and such Eligible Employee was not entitled to payment, then the Eligible Employee shall repay the mistaken amount within thirty
(30) days after written notice thereof. If the Eligible Employee does not repay such amount, then the mistaken payment may be recovered by offsetting the mistaken payment against any money that might then or later be due to the Eligible
Employee from the Company or any plan sponsored by the Company, to the extent permitted under applicable law. The right under this Section 9.4 to recover mistaken payments through offset is not the exclusive means by which recovery of the
mistaken payment may be pursued. In addition to or in lieu of offset, the recovering person or entity may also pursue ordinary collection efforts or legal action against the Eligible Employee. 

9.5 Headings; Integration. Headings are included for the convenience of reference only and shall not be used in the
interpretation or construction of any provision contained in the Program. This Program contains all the elements of the Program and supersedes any prior discussions, agreements or understandings, and there are no promises, representations or
agreements from the Company or the Successor other than as set forth herein. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless executed in writing by the party to be charged with such modification,
amendment, or waiver. Under no circumstances can the terms of this Program or any Award issued hereunder be waived or modified by an oral agreement. 
 9.6 Severability Clause. In the event any provision of the Program is held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Program, and the Program shall be construed and enforced as if the illegal or invalid provision had not been included, provided that if the illegality of invalidity deprives any party of the benefit of the obligations agreed to hereunder with
respect to any Participant, then such illegality or invalidity shall invalidate the Program and the Program shall thereafter be void as to the relationship between the Company and that Participant. 

9.7 At Will Employment. Nothing in the Program shall interfere with or limit in any way the right of the Employer or the
Buyer to terminate any individual’s employment at any time. The Program shall not confer upon any individual any right to continue in the employ of an Employer or the Successor. 

  
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 9.8 Governing Law. The laws of the State of Alabama shall govern the Program.

 IN WITNESS WHEREOF, the Company adopts the Program on this     th day of June, 2011. 

 

			
	 UNITED STATES PIPE AND FOUNDRY
 COMPANY, LLC

		
	By:	 	 /s/ Gregory E. Hyland

	Gregory E. Hyland
	Chairman and Chief Executive Officer

  
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 EXHIBIT A 
 FORM OF NOTICE OF ELIGIBILITY 
 This Agreement is made as of
                    , 2011 by and between United States Pipe and Foundry Company, LLC (the “Company”) and the undersigned employee
(the “Employee”). 
 The Company has agreed to offer the undersigned Employee the rights of an “Eligible
Employee” under the Special Incentive Award Program (the “Program”). All terms used herein and not otherwise defined shall have the meaning given such terms in the Program and this Agreement shall be interpreted in the manner provided
in the Program. In the event of any difference between this Agreement and the Program, the terms of the Program shall prevail. 

1. Under the terms and subject to the conditions of a copy of the Program, the Employee is eligible for a Special Incentive Award of
$                     and an Additional Incentive Award of
$                    . 
 2. The undersigned Employee acknowledges receipt of the Program, and agrees to be bound by the terms and subject to the conditions of the Program, as interpreted by the Administrator in its sole
discretion. 
 3. Any controversy, dispute or claim arising out of or relating to this Agreement or breach thereof shall first
be settled by MWP’s Senior Vice President-Human Resources. If the dispute cannot be settled by the Senior Vice President-Human Resources, the parties agree to attempt in good faith to settle the dispute by mediation administered by JAMS. If the
parties are unsuccessful at resolving the dispute through mediation, the parties agree to binding arbitration administered by JAMS pursuant to its Employment Arbitration Rules & Procedures and subject to JAMS Policy on Employment
Arbitration Minimum Standards of Procedural Fairness. The situs of any mediation and arbitration shall be Atlanta, Georgia. Judgment on the award may be entered in any court having jurisdiction. 

                     (Company
Representative’s Initials)
                                        
(Employee’s Initials) 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth opposite
their names below. 
  

									
	Date:	 	  
	 		 	UNITED STATES PIPE AND FOUNDRY
		 		 		 	COMPANY, LLC
					
		 		 		 	By:	 	  

		 		 		 	Name: Gregory E. Hyland
		 		 		 	Title: Chairman and Chief Executive Officer
				
	Date:	 	  
	 		 	Eligible Employee:
				
		 		 		 	  

		 		 		 	NAME:Unassociated Document

 

PROMISSORY NOTE

 

	$25,000.00  	June 10, 2011

 

FOR VALUE RECEIVED, the undersigned, Magna-Lab Inc., a New York corporation (“Borrower”), HEREBY PROMISES TO PAY to the order of Magna Acquisition LLC or its registered assigns ( “Lender”), in lawful money of the United States of America, in the manner and at the times provided hereinafter, the principal sum of Twenty Five Thousand Dollars (US$25,000), together with Interest (as hereinafter defined) and Default Interest (as hereinafter defined) and all other amounts due and payable pursuant to and in accordance with terms of this Note.

 

Interest shall accrue on the unpaid principal amount of this Note from the date hereof until such principal amount is paid in full.  “Interest” shall mean twelve percent (12%) per annum.  Interest shall be computed on the actual number of days elapsed, predicated on a year consisting of three hundred and sixty (360) days.

 

Default Interest, if any, shall be payable on demand.  “Default Interest” shall mean interest computed at fifteen percent (15%) per annum, on (i) the entire principal balance of this Note from time to time unpaid from and after such amounts becomes due and payable (whether upon maturity, by acceleration or otherwise), and (ii) any and all other unpaid amounts due pursuant to the terms and provisions of this Note (including, but not limited to, accrued and unpaid Interest) from and after the respective date(s) on which those amounts become due and payable, whether upon maturity, by acceleration or otherwise; in each case from and after the expiration of any applicable grace period.  Default Interest shall be computed on the actual number of days elapsed, predicated on a year consisting of three hundred and sixty (360) days.  Notwithstanding anything to the contrary contained herein, for any period in which Default Interest is accruing on the entire unpaid principal balance hereunder, Interest shall not accrue.  Default Interest shall compound on an annual basis.

 

Unless otherwise accelerated pursuant to the terms hereof, this Note shall mature and all outstanding and unpaid principal and Interest shall be due and payable on the date that is 120 days from and after the date hereof.

 

This Note may be prepaid, in whole or in part, at any time by Borrower without premium or penalty.  Any prepayment of this Note shall be accompanied by payment of any Interest accrued and unpaid through the date of such prepayment, and all Default Interest, if any, accrued and unpaid through the date of such prepayment.

 

Notwithstanding anything to the contrary contained herein, upon the occurrence of any one or more of: (i) a default in the payment of any amounts due hereunder and a failure to cure such default within five (5) business days, or (ii) a default hereunder, and the expiration of any grace period applicable to any default as set forth herein, then at the sole option and discretion of Lender, and without further demand or notice of any kind, the following shall become immediately due and payable:

 

	
  

	
1.

	
the aggregate principal amount of this Note outstanding and remaining unpaid hereunder;

 

	
  

	
2.

	
unpaid Interest;

 

	
  

	
3.

	
Default Interest; and

 

	
  

	
4.

	
all other indebtedness evidence by this Note.

 

  

  

  

 

The following shall constitute events of default hereunder: (i) the assignment for the benefit of creditors by Borrower; (ii) the application for the appointment of a receiver for Borrower or for the property of Borrower; (iii) the filing of a petition in bankruptcy by or against Borrower; (iv) the issuance of an attachment or the entry of a judgment against Borrower; (v) a default by Borrower with respect to any other indebtedness due to Lender; (vi) the making or sending of a notice of an intended bulk sale by Borrower; (vii) the merger, consolidation, termination of existence, dissolution or insolvency of Borrower; (viii) the good faith determination by Lender that it deems itself insecure or that a material adverse change in the financial condition of Borrower has occurred since the date hereof and that Lender’s prospect of payment hereunder has been impaired; or (ix) any breach or default under any indebtedness of Borrower to any banking or financial institution, and the expiration of any grace period applicable to such breach or default.

 

If Borrower fails to pay any amounts when due hereunder, whether at maturity, by acceleration or otherwise, or if there occurs any event which entitles Lender to accelerate the indebtedness due under this Note and any grace period applicable to any such failure to pay or event as set forth herein expires, then Lender shall have all of the rights and remedies provided to it hereunder, and at law or in equity.  The remedies of Lender, as provided herein, shall be cumulative and concurrent, and may be pursued singularly, successively, or otherwise, at the sole discretion of Lender, and may be exercised as often as occasion therefor shall arise.  Lender may resort for payment hereunder to any of security for, or any guaranty of, this Note whether or not Lender shall have resorted for payment hereunder to any other security for or guaranty of this Note.  No act or omission of Lender, including specifically any failure to exercise any right, remedy or recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be effected only through a written document executed by Lender and then only to the extent specifically recited therein.  A waiver or release with reference to any one event shall not be construed as continuing, as a bar to, or as a waiver or release of, any subsequent right, remedy, or recourse as to a subsequent event.  If this Note is placed in the hands of an attorney for collection or is collected on advice of counsel or through any legal proceeding, Borrower promises to pay, to the extent permitted by law, court costs and reasonable attorneys’ fees incurred by Lender.  Borrower hereby waives presentment, demand, notice of dishonor or nonpayment, protest and notice of protest in connection therewith.

 

If any provision of this Note is unenforceable, invalid or contrary to law, or its inclusion herein would affect the validity, legality or enforcement of this Note, such provision shall be limited to the extent necessary to render the same valid or shall be excised from this Note, as the circumstances require, and this Note shall be construed as if said provision had been incorporated herein as so limited or as if said provision had not been included herein, as the case may be.

 

Time is of the essence of this Note.

 

Upon maturity or following the occurrence of any event which entitles Lender to accelerate the indebtedness evidenced hereby, all payments received on account of the indebtedness evidenced hereby shall be applied, in whatever order, combination and amounts as Lender, in its sole and absolute discretion, decides, to all costs, expenses and other indebtedness, if any, owing to Lender by reason of this Note; Default Interest, Interest; and principal.

 

This Note, and the terms and provisions hereof, shall be binding upon Borrower and its successors, administrators, and assigns, and shall inure to the benefit of any holder hereof.

 

All amounts due hereunder shall be paid without deduction, set-off or counterclaim, Borrower expressly waiving any such rights to deduction, set-off or counterclaim.

  

  

  

  

 

Notwithstanding any provisions to the contrary contained in this Note or in any of the other documents or instruments referred to in this Note, if at any time or times the interest and any sums considered for such purposes to be interest, payable under or by reason of this Note or any such other documents or instruments, should exceed the maximum which, by the laws of the State having jurisdiction, may be charged with respect to the loan evidenced hereby, given the nature and all of the pertinent circumstances of such loan, than all such sums in excess of such maximum shall be deemed not to be interest, but rather to be payments on account of principal, and without further agreement of the parties shall be so applied without regard to any other provision of this Note, provided that Lender may elect instead that no sums shall be payable in excess of such maximum, whereupon this Note, and such other documents and instruments hall be deemed amended accordingly without further action by any party.

 

This Note shall inure to the benefit of Lender and its successors and assigns and shall be governed by, and construed in accordance with, the laws of the State of Delaware.

 

	 	
MAGNA-LAB INC., a New York corporation

	 
	 	 	 	 
	
 

	
By 

	 
/s/ Lawrence A Minkoff

	 
	 	 	 
Name: Lawrence A. Minkoff

	 
	 	 	 
Title: Chairman and President

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