Document:

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                                                                    EXHIBIT 10.1

                                  PENTAIR, INC.

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

         SECTION 1.      NAME OF PLAN.  This plan shall be known as the
Pentair, Inc. Supplemental Executive Retirement Plan ("SERP").

         SECTION 2.      DEFINITIONS.  Unless the context requires otherwise,
when used herein the terms listed below, when capitalized, shall have the
following meanings:

         (1)      "ACTUARIAL EQUIVALENT" is a benefit form which has the same
present value as another benefit form, determined by applying such actuarial
equivalent factors as the Committee, in its sole discretion, deems appropriate;
provided, however, upon a Change in Control the actuarial equivalent factors
shall be based upon UP84 mortality and seven percent (7%) interest.

         (2)      "BENEFIT COMMENCEMENT DATE" is the first day of the month on
which payment of a Participant's retirement benefits under the SERP is scheduled
to commence.

         (3)      "CHANGE IN CONTROL" is a change in control of the Company as
defined in the KEESA.

         (4)      "CODA" is a Pension Plan which allows covered individuals to
defer thereunder all or a portion of the cash compensation that otherwise would
be currently paid to the individual.

         (5)      "CODE" is the Internal Revenue Code of 1986, as amended.

         (6)      "COMMITTEE" is the Compensation and Human Resources Committee
of the Board of Directors of Pentair, as appointed from time to time.

         (7)      "COVERED  TERMINATION" is a covered termination, as defined in
the KEESA, which entitles a Participant to a termination payment pursuant to
Sections 8 and 9(a) of the KEESA.

         (8)      "DISABLED" or "DISABILITY" is a Termination of Employment
caused by a physical or mental incapacity which constitutes a total and
permanent disability under the Pentair Long Term Disability Plan, as amended
from time to time.

         (9)      "EARLY RETIREMENT DATE" is the first day of the month for
which a Participant elects to commence receiving his early retirement benefits
under the SERP.

         (10)     "EMPLOYER COMPANY" is the member of the Group which employs a
Participant as of the date the Participant dies or has a final  Termination of
Employment, whichever occurs earlier.

         (11)     "ERISA" is the Employee Retirement Income Security Act of
1974, as amended.

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         (12)     "FINAL AVERAGE COMPENSATION" is a Participant's average annual
compensation determined by averaging compensation in those thirty-six (36)
consecutive months, out of the last sixty (60) consecutive months ending with
the earlier of (i) the calendar month ending prior to his Normal Retirement Date
and (ii) the calendar month ending prior to the date of his Termination of
Employment or death (whichever occurs earlier), for which the aggregate
compensation is the largest. For this purpose, "compensation" includes all cash
remuneration paid to or on behalf of a Participant for services actually
rendered to a member of the Group as an employee, including annual incentive
cash bonuses, except cash payments under any long-term compensation arrangement
(e.g., incentive compensation units under the Pentair, Inc. Omnibus Stock
Incentive Plan). Such compensation shall include all amounts which would have
been paid to the Participant but for the Participant's election to defer such
amounts (e.g., elective deferrals under a CODA) or to have such amounts fund
other non-cash benefits (e.g., salary reductions under a cafeteria plan).

         (13)     "GROUP" is Pentair and any other corporation, business trust,
partnership, or joint venture in which Pentair owns (either directly or
indirectly) fifty percent (50%) or more of the voting stock or rights analogous
to voting stock. Any such other corporation, business trust, partnership, or
joint venture shall be considered a member of the Group only for the period such
ownership exists.

         (14)     "KEESA" is the Key Executive Employment and Severance
Agreement between the Company and key executives, as approved by the Company's
board of directors effective August 23, 2000.

         (15)     "LATE RETIREMENT DATE" is the first day of the calendar month
after the calendar month in which the Participant has a Termination of
Employment that occurs after his Normal Retirement Date.

         (16)     "NORMAL RETIREMENT DATE" is the first day of the calendar
month coincident with or immediately following the later of (i) a Participant's
sixty-fifth (65th) birthday, and (ii) (except as waived or modified pursuant to
Section 7) the date a Participant completes five (5) years of Service.

         (17)     "PARTICIPANT" is any employee of the Group who has accepted
participation in the SERP, and any former such employee who is entitled to a
retirement benefit under the SERP.

         (18)     "PENSION PLAN" is (i) any "employee pension plan" (as that
phrase is defined in ERISA Section 3(2)) other than the SERP, and (ii) any other
contract or arrangement, other than the SERP, Rollover IRA or KEESA, which
provides retirement or retirement type benefits.

         (19)     "PENTAIR" is Pentair, Inc., a Minnesota corporation.

         (20)     "PENTAIR PENSION PLAN" is the tax-qualified defined benefit
plan sponsored by Pentair, as amended from time to time.

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         (21)     "PIA" is the monthly primary insurance amount under the
federal Social Security Act, as amended, determined without regard to applicable
reductions in such amount for earnings during or after the month such amount
begins to be paid.

         (22)     "ROLLOVER IRA" is any "Individual Retirement Account or
"Individual Retirement Annuity" (within the meaning of Code section 408) to
which benefits from a Pension Plan have been rolled over in accordance with Code
section 402.

         (23)     "SERVICE" is the period of time an individual employed within
the Group as an employee. In general, Service is measured in whole completed
years, beginning with the date of an individual's employment within the Group
and ending on the date of his Termination of Employment or such other dates as
are relevant under the SERP (e.g., the date the individual is nominated for
participation in the SERP).

                  For determining Service when an individual has a Termination
of Employment and thereafter returns to employment within the Group as an
employee, the individual's whole and fractional years of Service before the
break in employment will be added to his or her Service after such break,
regardless of the period of the break. For this purpose, a month of Service
shall equal 1/12th of a year of Service, and thirty (30) days shall equal one
(1) month.

         (24)     "TERMINATION OF EMPLOYMENT" is any event by which there is no
longer an employer-employee relationship between any member of the Group and an
individual, except any such termination caused by the individual's death.

         (25)     "VESTING AND ACCRUAL DATE" is (except as accelerated or
modified pursuant to Section 7) the first day of the calendar month coincident
with or immediately following the later of (i) a Participant's sixtieth (60th)
birthday, and (ii) the date a Participant completes five (5) years of Service.

         SECTION 3.      PURPOSE.  The primary purpose of the SERP is to provide
retirement benefits to key executives in excess of the retirement benefits
available to them under the Pentair Pension Plan. In particular, the SERP is a
means of compensating key executives because (i) they frequently join the Group
later in their careers and therefore cannot earn a retirement benefit under the
Pentair Pension Plan which is appropriate for their services rendered to the
Group, and (ii) their retirement benefit under the Pentair Pension Plan is
subject to certain federal tax law limits which artificially reduce the
retirement benefit they would otherwise earn under such plan.

         SECTION 4.      EFFECTIVE  DATE. The SERP shall be effective June 16,
1988, which is the date Pentair adopted the SERP; the effective date of this
amended and restated plan document shall be August 23, 2000.

         SECTION 5.      ELIGIBILITY AND PARTICIPATION.  The SERP, as so amended
and restated effective August 23, 2000, shall apply with respect to Messrs.
Buxton, Collins and Rueb, each of whom has been previously nominated and
approved for participation in the SERP, and each of whom has accepted the terms
and conditions of such participation, including the provisions of Section 11.
The SERP document as in effect before this amendment and restatement shall
continue to apply with respect to all other Participants entitled to benefits
under the SERP.

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         SECTION 6.      RETIREMENT BENEFIT. (a) Normal Retirement Benefit.  A
Participant who has a Termination of Employment effective as of his Normal
Retirement Date shall be entitled to an annual retirement benefit under the
SERP, commencing as of such date, equal to (x) minus ((y) plus (z)), where (x)
equals 50% of the Participant's Final Average Compensation, (y) equals 100% of
the Participant's annualized PIA, and (z) equals the offset for other retirement
benefits.

         (b)      Late Retirement Benefit.  A Participant who has a Termination
of Employment effective after his Normal Retirement Date shall be entitled to an
annual retirement benefit under the SERP, commencing as of his Late Retirement
Date, equal to the annual retirement benefit which he would have received under
Section 6(a) if Termination of Employment had occurred effective as of his
Normal Retirement Date. There shall be no increase to such benefit to reflect
the fact that it did not commence as of the Normal Retirement Date, provided,
however, that the Committee may, in its discretion, authorize such an increase.

         (c)      Early Retirement Benefit. (1) Eligibility.  A Participant who
has a Termination of Employment on or after attaining (i) the Vesting and
Accrual Date, and (ii) (except as modified by Section 7) age sixty (60), may
elect in writing to receive an early retirement benefit under the SERP. The
early retirement benefit shall commence as of the first day of any calendar
month selected by the Participant within the period beginning with the calendar
month following Termination of Employment and ending with the calendar month
immediately before his Normal Retirement Date; provided, however, such date must
be at least thirty (30) days after the date the Participant makes such an
election. If a Participant is eligible for but does not elect to receive such
early retirement benefit, then he shall be entitled to a benefit at Normal
Retirement Date computed as described in Section 6(c)(2) but without the
reduction described in Section 6(c)(3).

                  (2)    Amount of Early Retirement Benefit.  Except as provided
in Section 6(e), a Participant's annual early retirement benefit shall be
determined in accordance with the formula described in Section 6(a); provided,
however, such benefit shall be reduced by the early retirement reduction factors
described in Section 6(c)(3) except to the extent otherwise provided in Section
6(c)(4).

                  (3)    Early Retirement Reduction Factors.  The appropriate
early retirement reduction factors shown below shall be multiplied by the number
of months within the given monthly bracket period.

<TABLE>
<CAPTION>

                                                     Months Before
                                                     -------------
                          Factors               Normal Retirement Date
                          -------               ----------------------
<S>                                             <C>
                  1/6th of 1% per month             first 36 months
                  4/10ths of 1% per month           next 36 months
                  1/2 of 1% per month               next 48 months

</TABLE>

                  (4)    Covered Termination.  If a Participant incurs a Covered
Termination, then no reduction shall be made in the early retirement benefit
payable to such Participant to reflect the fact such benefits commence before
the Normal Retirement Date.

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         (d)      Deferred Vested Retirement Benefit.  A Participant who has a
Termination of Employment on or after the Vesting and Accrual Date and who is
not eligible to receive an early retirement benefit under the SERP shall be
entitled to a deferred vested retirement benefit commencing as of Normal
Retirement Date. Except as provided in Section 6(e), a Participant's annual
deferred vested retirement benefit shall be determined in accordance with the
formula described in Section 6(a).

         (e)      Annualized PIA. (1) Normal and Late Retirement.  The
annualized PIA of a Participant who has a Termination of Employment on or after
Normal Retirement Date shall be the PIA for the month that includes his Normal
Retirement Date multiplied by twelve (12). If the Committee adjusts a
Participant's late retirement benefit as allowed under Section 6(b), however,
then the Committee may appropriately adjust such Participant's PIA for increases
thereon after Normal Retirement Date.

                  (2)    Early and Deferred Vested Retirement.  The annualized
PIA of a Participant who elects or is entitled to elect an early retirement
benefit under the SERP or who is entitled to deferred vested retirement benefits
under the SERP shall be equal to his estimated PIA as of the month in which he
will attain his Normal Retirement Date multiplied by twelve (12). The estimate
of the PIA shall be based on the assumptions that (i) the Participant will
continue to earn wages for purposes of the federal Social Security Act after
Termination of Employment equal to the applicable federal Social Security Act
wage bases in effect for the period after his Termination of Employment and
before his Benefit Commencement Date, and (ii) there will be no changes to the
federal Social Security Act or benefit levels thereunder after Termination of
Employment.

         (f)      Offset for Other Retirement Benefits.  (1) General. The
purpose of the offset for other retirement benefits is to make sure that a
Participant receives an appropriate retirement benefit under the SERP for
services rendered to the Group, taking into account the Participant's retirement
benefits under other retirement plans maintained (or formerly maintained) by
Group members or employers who are not members of the Group, to the extent
attributable to services rendered to the Group and previous employers. Since it
is intended that such offset shall apply to only benefits attributable to true
employer contributions, however, the offset for other retirement benefits shall
not include any retirement benefits attributable to (i) the Participant's own
contributions (e.g., voluntary after-tax contributions), (ii) service as other
than a common law employee (e.g., benefits under a Keogh plan attributable to
service as a self-employed individual), (iii) a Participant's pre-tax
contributions to a CODA, (iv) employer matching contributions plus earnings to a
401(k) plan not sponsored by the Company, and (v) any retirement benefits
analogous to such items. In addition, no offset shall be made for benefits
attributable to matching contributions made by a member of the Group to a
tax-qualified Pension Plan if such contributions are based, in whole or part, on
a Participant's pre-tax contributions to a CODA (e.g., employer matching
contributions under the Pentair RSIP).

         This subsection provides the general rules for determining the offset
for other retirement benefits. If, in the sole discretion of the Committee,
application of these general rules would be unfair to or work an undue hardship
on a Participant, the Committee may determine the offset in such manner as it
deems appropriate in light of the objective such offset is intended to serve.

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         A Participant shall be responsible for providing such information to
the Committee as it requests in order for the Committee to determine the proper
offset for other retirement benefits. If the Participant does not supply such
information, the Committee may use such procedures as it, in its sole
discretion, deems appropriate or helpful to determine the offset, including, but
not limited to, basing the offset on the assumption that all retirement benefits
are attributable to employer contributions or withholding all benefits under the
SERP until and unless the Participant provides the requested information.

                  (2)    Defined Benefit Plans. The retirement benefit under a
defined benefit Pension Plan shall be the annual benefit at Normal Retirement
Date payable to the Participant under such plan, expressed in the normal form of
benefit payable under such plan for an unmarried participant. If such normal
form of benefits is a straight life annuity, no further adjustment shall be made
to such benefit. If such normal form of benefit is not a straight life annuity,
however, then for purposes of determining the offset it shall be converted into
a straight life annuity which is the Actuarial Equivalent of such normal form of
benefit.

                  (3)    Defined Contribution Plans and Rollover IRAs.  The
participant's annual retirement benefit under a defined contribution Pension
Plan or Rollover IRA shall be based on the Participant's vested account balance
as of the last valuation date thereunder adjusted, in the discretion of the
Committee, for assumed earnings thereon to the Benefit Commencement Date.

                  The vested account balance, as so adjusted, shall be then
converted into a straight life annuity, commencing as of the Participant's
Normal Retirement Date, which has a present value equal to the amount of the
vested account balance. Such present value shall be determined by the factors
that would be used, as of the first day of the calendar year which includes the
Benefit Commencement Date, by the Pension Benefit Guaranty Corporation for
valuing an immediate or deferred annuity, as the case may be, on a standard plan
termination covered by Title IV of ERISA.

                  (4)    Prior Distributions. The provisions of Section  6(f)(3)
(including the discretion granted to the Committee to make adjustments for
assumed earnings) also shall be applied in determining the annual retirement
benefit attributable to a distribution to a Participant from any Pension Plan
and Rollover IRA which the Participant did not roll over to a Pension Plan or
Rollover IRA (e.g., a distribution that a Participant chose to be currently
taxed on), except the amount of such distribution shall be used rather than the
"vested account balance."

                  (5)    Change in Control.  If a Participant incurs a Covered
Termination, then (i) the offset for other retirement benefits shall not include
any such benefits earned after such termination and (ii) the offset for other
retirement benefit shall not be greater than that determined with respect to
such Participant immediately before the Change in Control to which the Covered
Termination relates, and such Participant shall be considered to have supplied
all information necessary to determine such offset.

         SECTION 7.      WAIVER, MODIFICATION, AND ACCELERATION OF AGE AND
SERVICE REQUIREMENTS. (a) Committee Action. Subject to the provisions of Section
7(c), the Committee may in its sole discretion:

         (i)      waive the normal age requirement or normal service
                  requirement, or both, used to determine whether an individual
                  may be nominated for SERP participation;

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         (ii)     waive or modify the normal age requirement or the normal
                  service requirement, or both, used to determine the Vesting
                  and Accrual Date;

         (iii)    waive or modify the normal service requirement used to
                  determine the Normal Retirement Date; and/or

         (iv)     modify the normal age requirement, or waive or modify the
                  normal service requirement, to be eligible for an early
                  retirement benefit under the SERP.

Any such waiver or modification may be made on an individual by individual basis
or on a group basis. In no event, however, may the Committee lower the normal
age requirement to be eligible for early retirement to an age below fifty-five
(55).

         (b)      Limitation on Committee Action. In no event may the Committee,
as to any one such modification, change (either directly or indirectly) any
applicable age or service requirement so as to require a greater age or more
Service than would otherwise apply to a Participant if no such modification were
made.

         (c)      Automatic Acceleration of Vesting and Accrual Date and
Lowering of Early Retirement Age. If a Participant incurs a Covered Termination,
then the Participant shall be considered to have attained his Vesting and
Accrual Date immediately before such termination and shall be eligible to elect
an early retirement benefit if he has attained age fifty-five (55).

         SECTION 8.      PAYMENT OF RETIREMENT BENEFITS.  (a) Commencement and
Normal Form of Benefit. A Participant who is alive on his Benefit Commencement
Date shall receive his retirement benefits in monthly payments commencing as of
that date. Unless an alternative form of benefit is elected by the Participant
pursuant to Section 8(b), retirement benefits shall be paid in the form of a
straight life annuity. That is, benefits will commence as of the Benefit
Commencement Date and end with the month in which the Participant dies, with no
further benefits payable thereafter.

         (b)      Alternative Forms of Benefit. (1) Joint and 50% Contingent
Survivor Annuity. Prior to his Benefit Commencement Date, a married Participant
may elect in writing to receive his retirement benefits under the SERP in the
form of a joint and 50% contingent survivor annuity, under which half of the
retirement benefits payable during the Participant's life shall continue for the
life of his spouse, if she survives him. The Participant's spouse shall have no
rights and entitlements over or with respect to such election. If such an
election is made but the individual to whom the Participant was married dies
before the Benefit Commencement Date, then such benefit election shall be null
and void and the Participant shall receive his benefits as a straight life
annuity, unless the Participant remarries before his Benefit Commencement Date
and again elects a joint and 50% contingent survivor annuity.

                  (2)    Other Forms of Benefit.  The Committee may, at its
discretion, make available to a Participant alternative benefit forms other than
that described in Section 8(b); provided, however, that (i) no lump-sum option
shall be available, and (ii) no other alternative benefit form may be offered
unless such benefit form is then offered to participants under the Pentair

                                      -7-

<PAGE>   8

Pension Plan who are then accruing benefits under that plan. Such other benefit
forms may be extended on an individual by individual basis or on a group basis;
provided, however, upon a Covered Termination the alternative forms of benefit
available shall include all such forms then offered (other than a lump sum, if
otherwise so offered) to participants under the Pentair Pension Plan who are
then accruing benefits under that plan. Any such election must be made before
the Participant's Benefit Commencement Date. The Participant's spouse shall have
no rights and entitlement over or with respect to such election.

                  If such other benefit form provides for contingent benefits
after the Participant's death to a beneficiary or class of beneficiaries and all
such beneficiaries die before the Benefit Commencement Date, then such benefit
election shall be null and void and the Participant shall receive his benefits
in the form of a straight life annuity, unless the Participant makes a new
benefit form election before his Benefit Commencement Date.

                  (3)    Actuarial Equivalent.  All alternative retirement
benefit forms under the SERP shall be the Actuarial Equivalent of the straight
life annuity the Participant would have received under Section 8(a) but for his
election of an alternative benefit form.

                  (4)    Beneficiaries. If a Participant elects an alternative
benefit form which provides for payments to, and measured on the life or lives
of an individual or individuals, such individual or individuals shall be
entitled to receive any benefits payable after the Participant's death. If a
Participant elects an alternative benefit form under which the duration of
benefits after his death are not tied to a survivor's life (e.g., a life annuity
with sixty (60) months guarantied), the Participant shall be entitled to name in
writing on forms prescribed by the Committee the beneficiary or beneficiaries of
any benefits payable after his death, and to change such beneficiary designation
at any time before the Participant's death. The Participant's spouse shall have
no rights and entitlements over or with respect to any such beneficiary
designation.

                  If such a beneficiary designation is not made before the
Participant's death or no named beneficiary survives the Participant, then any
benefits payable after the Participant's death shall be paid to the personal
representative of the Participant's estate.

         (c)      Forfeiture.  (1) Death Before Benefit Commencement Date.
Notwithstanding the fact that a Participant has reached the Vesting and Accrual
Date, a Participant's retirement benefits under the SERP shall be forfeited upon
death before his Benefit Commencement Date. The Participant's surviving spouse,
however, may be entitled to a pre-retirement death benefit as described in
Section 10.

                  (2)    Breach of Section 11.  Notwithstanding the fact that a
Participant has reached the Vesting and Accrual Date, a Participant's retirement
benefits under the SERP may be forfeited upon violation of any provision of
Section 11.

         SECTION 9.      DISABILITY BENEFIT.  If a Participant has a Termination
of Employment, as a result of being Disabled, before the Vesting and Accrual
Date, and before becoming eligible for early retirement benefits under the SERP,
then the Participant shall continue to receive Service credit until the earlier
of (i) Normal Retirement Date, and (ii) the date the Participant is no longer
Disabled. If the Participant recovers from the Disability before Normal
Retirement Date, the Participant's benefits

                                      -8-

<PAGE>   9

under the SERP, and the benefits of any person claiming such benefits through
the Participant, shall be as otherwise provided for under the SERP. If, however,
the Participant remains Disabled until Normal Retirement Date, the Participant
shall be entitled to a benefit under the SERP, commencing as of Normal
Retirement Date, equal to the retirement benefit determined under Section 6(a)
as if Termination of Employment had occurred effective as of Normal Retirement
Date. This benefit shall be paid as a straight life annuity, and the Participant
shall not be entitled to elect to receive such benefit under an alternative form
of benefit.

         SECTION 10.     PRE-RETIREMENT DEATH BENEFIT.  (a) Eligibility.  If a
Participant dies before his Benefit Commencement Date and is survived by a
spouse, a death benefit shall be payable to the Participant's surviving spouse
if the Participant has been married to such spouse for at least one (1) year as
of the Participant's date of death.

         (b)      Amount of Benefit.  (1) Death On or After Becoming Eligible
for Early Retirement Benefits. If a Participant dies on or after the date at
which the Participant could have elected to receive early retirement benefits
under the SERP (assuming he had a Termination of Employment), the benefit
payable to the surviving spouse shall be the amount of the contingent survivor
annuity that would have been payable to such spouse if the Participant had
commenced receiving benefits under the SERP, payable in the form of the joint
and 50% contingent survivor annuity described in Section 8(b), commencing as of
the first day of the calendar month following the date of the Participant's
death.

                  (2)    Death Before Becoming Eligible for Early Retirement
Benefits. If a Participant dies before the date at which the Participant could
have elected to receive early retirement benefits under the SERP (assuming he
had a Termination of Employment), the benefit payable to the surviving spouse
shall be the amount of the contingent survivor annuity that would have been
payable to such spouse if the Participant was eligible for and had elected early
retirement benefits under the SERP, payable in the form of the joint and 50%
contingent survivor annuity described in Section 8(b), commencing as the first
day of the calendar month following the date of the Participant's death. For
this purpose, the amount of the benefit that would have been so payable to the
Participant, before adjustment to reflect the joint and 50% contingent annuity
form, will be determined by using the reduction factor of 1/2 of 1% for each
month in the period beginning as of the first day of the calendar month after
the Participant's death and ending on the first day of the calendar month after
the date the Participant would have attained age 55.

                  (3)    Commencement and Duration.   The pre-retirement death
benefit shall be paid monthly commencing as of the first day of the calendar
month following the date of the Participant's death and ending with the month
the spouse dies.

         SECTION 11.     CONFIDENTIALITY, COVENANTS NOT TO COMPETE, AND
NON-SOLICITATION.  (a)  General.  Each  Participant  acknowledges  that as a key
executive of Pentair or other Group member  Participant  has become familiar and
will  continue  to be  familiar  with the  trade  secrets,  know-how,  executive
personnel,  strategies,  other  confidential  information and data of the Group.
Each Participant  further  acknowledges that the financial security of the Group
and its shareholders depends in large part on the efforts of executives like the
Participant, and that a basic premise for the SERP is to compensate Participants
for their efforts in causing the Group to grow and prosper,  thereby  helping to
insure  the  Group's  financial  future  for  years  well  beyond  the  time the
Participant

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<PAGE>   10

retires. Therefore, in consideration of the extension of the SERP to a
Participant, the Participant agrees that (1) after Termination of Employment
Participant shall not (directly or indirectly) and without Pentair's prior
written consent, disclose to any other person any confidential information or
data concerning Pentair or other member of the Group, and (2) for a period of
three (3) years from Termination of Employment the Participant shall not
(directly or indirectly) and without Pentair's prior written consent:

           (i)    own, manage, control, participate in, consult with or render
                  services of any kind for any concern which engages in a
                  business which is competitive with any business being
                  conducted by the Group as of the date of Termination of
                  Employment;

          (ii)    become an employee or agent of any publicly traded
                  corporation, or any division or subsidiary of such
                  corporation, where more than 5% of such organization's
                  business is in competition with any business being conducted
                  by the Group as of the date of Termination of Employment,
                  unless the annual sales of such organization do not exceed $40
                  million;

         (iii)    participate in any attempt to acquire the business or assets
                  of the Group or control of the voting stock of any member
                  thereof, or in any manner interfere with the control of
                  Pentair, whether by friendly or unfriendly means; or

          (iv)    induce any individual to leave the employ of Pentair or other
                  member of the Group nor shall the Participant hire any such
                  individual who approaches Participant for employment.

         If at the time of enforcement of this Section 11, a court shall hold
that the duration, scope or area of restriction stated herein are unreasonable
under the circumstances then existing, Pentair and the Participant agree that
the maximum duration, scope, or area reasonable under such circumstances shall
be substituted for the stated duration, scope, or area.

         (b)      Forfeiture.  Upon any breach of the covenants described in
Section 11(a), all benefits then due under the SERP (and all benefits which
otherwise would be due under the SERP in the future) to the Participant or his
beneficiaries shall be forfeited.

         (c)      Other Remedies.  The covenants described in Section 11(a) run
in favor of and shall be enforceable by Pentair. Pentair shall be entitled to
pursue all legal and equitable remedies to cure or compensate for a breach of
the covenants described in Section 11(a), without posting of bond, and all such
remedies shall be in addition to the forfeiture described in Section 11(b).

         SECTION 12.     FUNDING.  (a)  General.  The SERP is an unfunded
deferred compensation arrangement. No member of the Group shall establish or is
required to establish any trust to fund benefits provided under the SERP, and no
such member shall establish or is required to establish any type of earmarking
or segregation of its assets to provide for such benefits. In the event of
default of a Group member's obligations hereunder, the Participant shall have no
greater entitlements or security than does a general creditor of the Group
member.

                                      -10-

<PAGE>   11

         (b)      Employer Company. Except as described in Sections 12(c) and
16, the Employer Company shall pay or provide for the payment of benefits
hereunder. If the Employer Company does not timely pay such benefits, then,
except as described in Section 12(c), the sole recourse of the claimant
Participant is against such Employer Company and no other member of the Group
shall be responsible to pay or provide for the payment of such benefits or
liable for the nonpayment thereof.

         (c)      Pentair Assumption of Liability.  Under the following
circumstances, Pentair shall assume and be responsible for the payment of
benefits hereunder even though it is not the Employer Company:

         (i)      the Employer Company is not participating in the SERP as of
                  the date benefits hereunder are scheduled to commence to a
                  Participant or his beneficiaries;

         (ii)     the Employer Company does not timely pay or provide for the
                  payment of benefits hereunder and such failure is not
                  corrected within thirty (30) days; or

         (iii)    the Participant has a Termination of Employment due to a sale
                  of the stock (or rights analogous to stock) or assets of a
                  Group member, and the Participant has attained the Vesting and
                  Accrual Date on or before the date of such termination.

         Pentair's obligation under paragraph (i) above shall cease when the
Employer Company agrees to participate in the SERP. Pentair's obligation under
paragraph (ii) above shall cease when the Employer Company is current on its
payment of benefits. Pentair's obligation under paragraph (iii) above shall not
come into effect (or if previously effective, shall cease) as of the date the
person who purchased such stock or assets, or a person who controls such person,
agrees in writing to assume the liability for the benefits the Participant has
then earned hereunder; provided, however, that upon a Change in Control Pentair,
any person in control of Pentair, and the Employer Company if not Pentair, shall
be jointly and severally responsible for payment of benefits hereunder
regardless of the other provisions of this Section 12 and the assumption of such
liability by another person shall not discharge Pentair, any person in control
of Pentair, and such Employer Company from liability hereunder.

         (d)      Participation by Other Group Members.  Any member of the Group
may join in this SERP by adopting a written resolution of its board of
directors, and delivering such resolution to the Committee. Any member of the
Group, other than Pentair, may end its participation under the SERP by a written
resolution of its board of directors delivered to the Committee, provided,
however, that no such resolution ending participation shall be effective until
thirty (30) days after it is received by the Committee. By agreeing to join in
the SERP, each member agrees to pay or provide for the payment of benefits
hereunder to those Participants (and their beneficiaries) with respect to whom
such member is the Employer Company. No such member, other than Pentair, shall
have any power or authority to terminate, amend, administer, modify, or
interpret the SERP, all such powers being reserved to Pentair and the Committee.

         SECTION 13.     NON-ALIENABILITY.  No disposition, charge or
encumbrance by any Participant on the benefits payable hereunder by way of
anticipation shall be valid or in any way binding upon the SERP, the Committee,
and Pentair and other members of the Group. No Participant or beneficiary shall
have the right to assign, transfer, encumber or otherwise dispose of any such

                                      -11-

<PAGE>   12

benefits until the same shall be paid to the Participant or his beneficiaries.
No payments under the SERP shall in any way be liable to the claims of any
creditor of a Participant or beneficiary until actually paid to such Participant
or beneficiary.

         SECTION 14.     DEFAULT.  Should the Employer Company (and Pentair to
the extent provided for in Section 12(c)) fail to pay when due any benefit under
the Plan to or with respect to a Participant or beneficiary and such failure to
pay continues for a period of sixty (60) days from receipt of a written notice
of nonpayment from the affected Participant or beneficiary, the Employer Company
(and Pentair to the extent provided in Section 12(c)) shall be in default
hereunder and shall pay to the Participant or beneficiary the benefits past due
and the reasonable costs of collection of any such amount, including reasonable
attorney's fees and costs; provided, however, if the Administrator in good faith
disputes the amount of such benefit due or whether a person is entitled to such
a benefit, then to the extent and duration of such a dispute the Employer
Company (and Pentair to the extent provided for in Section 12(c)) shall not be
considered in default hereunder; provided further, however, a Participant for
whom a KEESA becomes operative due to a Change in Control, and regardless of
whether such Participant incurs a Covered Termination, shall be entitled to
payment or reimbursement of such costs of collection as provided under Section
18(g).

         SECTION 15.     ADMINISTRATION OF THE SERP. The Committee shall have
the authority to administer the SERP, including the power and discretion to
construe and interpret its provisions. The Committee may delegate ministerial
aspects of such administration to employees of Pentair. Nothing in this Section
15 shall alter or limit any power or discretion granted the Committee under
other Sections of the SERP.

         SECTION 16.     EFFECT OF KEESA.  If a Participant incurs a Covered
Termination, then as or with respect to that Participant:

         (i)      notwithstanding the provisions of Section 11, the scope or
                  duration (or both) of such Participant's covenants under
                  Section 11 shall be no greater or longer than similar
                  covenants provided for in such Participant's KEESA and, to the
                  extent there are no such similar covenants in such
                  Participant's KEESA, then Section 11 shall be void and of no
                  force and effect; and

         (ii)     in the case of any conflict between the terms and provisions
                  of this SERP document and the terms and provisions of such
                  Participant's KEESA, the terms of such Participant's KEESA
                  shall control to the extent more beneficial to such
                  Participant, and the obligations of Pentair under such KEESA
                  shall be in addition to any of its obligations hereunder.

         SECTION 17.     AMENDMENT OR TERMINATION.  (a) General.  This Plan may
be terminated or amended, in whole or in part, at any time by written resolution
of the Board of Directors of the Company. Any such action may apply to the Plan
as a whole, or any individual Participant or group of Participants. Except as
provided in Section 17(b) and (c), any such action may reduce or eliminate
(retroactively or prospectively, or both) any benefits under the Plan that
otherwise would be payable but for such action.

                                      -12-

<PAGE>   13

         (b)   Limitation on Power to Amend or Terminate. (1) Vested
Participants. As to any Participant who has attained his Vesting and Accrual
Date (determined without regard to Section 11) before the date the Plan is
amended or terminated (or, if later, before the date such action is effective),
no such amendment or termination shall (without the specific written consent of
the Participant):

         (i)      reduce the SERP benefits earned by the Participant;

         (ii)     reduce the amount of SERP benefits then being paid to a
                  Participant or change the form in which such benefits are
                  being paid; or

         (iii)    terminate, amend, or otherwise change the liability of
                  Pentair, other Group member, or other person to pay or provide
                  for the payment of SERP benefits protected under clauses (i)
                  and (ii) immediately preceding.

                  (2)     Beneficiaries.  As to any former Participant who has
died before the date the Plan is amended or terminated (or, if later, before the
date such action is effective), no such amendment or termination shall (without
the specific written consent of such Participant's beneficiary):

         (i)      reduce the amount of Plan benefits to which such beneficiary
                  is entitled or change the form in which benefits are payable;
                  or

         (ii)     terminate, amend, or otherwise change the liability of
                  Pentair, other Group member, or other person to pay or provide
                  for the payment of benefits protected under clause (i)
                  immediately preceding.

         (c)      Change in Control.  In addition to the limitations described
in Section 17(b), upon a Change in Control for which a Participant's KEESA
becomes operative and under which a Covered Termination has or may occur, then
without the specific written consent of the Participant (or beneficiary in the
event of the Participant's death), the Plan as in existence immediately prior to
the Change in Control may not be (directly or indirectly) terminated, amended,
or otherwise changed in any respect during the three year period beginning with
the date of the Change in Control, but only with respect to such individual. The
prohibition herein described shall apply to any action which affects or is
intended to affect the terms and provisions of the Plan as then in effect during
such three year period, regardless of when made or effective.

         (d)      Continuation of Plan Provisions.  To the extent that any Plan
benefits, and rights and obligations allocable thereto, are protected under
Section 17(b) and (c), then as to the persons described in Section 17(b) and (c)
the Plan shall continue in force and effect, as if no such amendment or
termination had occurred, until such benefits are fully paid or fully provided
for to such persons.

         SECTION 18.     MISCELLANEOUS. (a) Employer's Rights.  The right of a
member of the Group to discipline or discharge employees or to exercise rights
related to the tenure of employment shall not be affected in any manner by
reason of the existence of the SERP or any action hereunder.

                                      -13-

<PAGE>   14

         (b)     Interpretation.  Section and subsection headings are for
convenient reference only and shall not be deemed to be part of the substance of
this instrument or in any way to enlarge or limit the contents of any Section or
subsection. Masculine gender shall include the feminine, and vice versa, and
singular shall include the plural, and vice versa, unless the context clearly
requires otherwise.

         (c)      Withholding of Taxes.  All benefit payments under the SERP
shall be subject to withholding for federal and state taxes as required by law.

         (d)      Computational Errors.  In the event mathematical, accounting,
actuarial or other errors are made in administration of the SERP due to mistakes
of facts, the Committee may make equitable adjustments, which may be
retroactive, to correct such errors. Such adjustments shall be conclusive and
binding on all Participants and beneficiaries.

         (e)      Choice of Law.  To the extent not preempted by ERISA or any
other federal statute, the construction and interpretation of the SERP shall be
governed by the laws of the State of Minnesota.

         (f)      Savings Clause.  Should any valid federal or state law or
final determination of any agency or court of competent jurisdiction affect any
provision of this SERP, the remaining provisions shall otherwise continue in
full force and effect.

         (g)      Change in Control. A Participant for whom a KEESA becomes
operative due to a Change in Control, and regardless of whether such Participant
incurs a Covered Termination, shall be entitled to adjudicate any dispute
regarding his or her benefits or rights and entitlements under the Plan in the
forums and venues as provided in Section 22 of the KEESA, and shall be entitled
to payment or reimbursement of costs and expenses related to such adjudication
as provided in Section 15 of the KEESA.

                              --------------------

         The undersigned, by the authority of the Board of Directors of Pentair,
Inc., does hereby approve the form and content of this amended and restated SERP
document.

Dated:
      -----------------------------    ---------------------------------------
                                       Louis L. Ainsworth
                                       Senior Vice President and General Counsel
                                       of Pentair, Inc.

         The undersigned, by the authority of the Board of Directors of Pentair,
Inc., does hereby execute the foregoing document for and on behalf of Pentair,
Inc. effective as of August 23, 2000.

                                           PENTAIR, INC.

Dated:                                     By:
       ----------------------------           ----------------------------
                                              Its:
                                                  ----------------------------

                                      -14-

<PAGE>   15

                                  PENTAIR, INC.

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                AS AMENDED AND RESTATED EFFECTIVE AUGUST 23, 2000

<PAGE>   16

                                TABLE OF CONTENTS

<TABLE>

<S>     <C>                                                                                                      <C>

1.       NAME OF PLAN.............................................................................................1

2.       DEFINITIONS..............................................................................................1

3.       PURPOSE..................................................................................................3

4.       EFFECTIVE DATE...........................................................................................3

5.       ELIGIBILITY AND PARTICIPATION............................................................................3

6.       RETIREMENT BENEFIT.......................................................................................4

         (a)      Normal Retirement Benefit.......................................................................4
         (b)      Late Retirement Benefit.........................................................................4
         (c)      Early Retirement Benefit........................................................................4
         (d)      Deferred Vested Retirement Benefit..............................................................5
         (e)      Annualized PIA..................................................................................5
         (f)      Offset for Other Retirement Benefits............................................................5

7.       WAIVER, MODIFICATION, AND ACCELERATION OF AGE AND SERVICE REQUIREMENTS...................................7

         (a)      Committee Action................................................................................7
         (b)      Limitation on Committee Action..................................................................7
         (c)      Automatic Acceleration of Vesting and Accrual Date and
                  Lowering of Early Retirement Age................................................................7

8.       PAYMENT OF RETIREMENT BENEFITS...........................................................................7

         (a)      Commencement and Normal Form of Benefit.........................................................7
         (b)      Alternative Forms of Benefit....................................................................7
         (c)      Forfeiture......................................................................................8

9.       DISABILITY BENEFIT.......................................................................................9

10.      PRE-RETIREMENT DEATH BENEFIT.............................................................................9

         (a)      Eligibility.....................................................................................9
         (b)      Amount of Benefit...............................................................................9

11.      CONFIDENTIALITY, COVENANTS NOT TO COMPETE, AND NON-SOLICITATION.........................................10

         (a)      General........................................................................................10

</TABLE>

<PAGE>   17

<TABLE>

<S>     <C>       <C>                                                                                           <C>

         (b)      Forfeiture.....................................................................................11
         (c)      Other Remedies.................................................................................11

12.      FUNDING.................................................................................................11

         (a)      General........................................................................................11
         (b)      Employer Company...............................................................................11
         (c)      Pentair Assumption of Liability................................................................11
         (d)      Participation by Other Group Members...........................................................12

13.      NON-ALIENABILITY........................................................................................12

14.      DEFAULT.................................................................................................12

15.      ADMINISTRATION OF THE SERP..............................................................................12

16.      EFFECT OF KEESA.........................................................................................12

17.      AMENDMENT OR TERMINATION................................................................................13

         (a)      General........................................................................................13
         (b)      Limitation on Power to Amend or Terminate......................................................13
         (c)      Change in Control..............................................................................14
         (d)      Continuation of Plan Provisions................................................................14

18.      MISCELLANEOUS...........................................................................................14

         (a)      Employer's Rights..............................................................................14
         (b)      Interpretation.................................................................................14
         (c)      Withholding of Taxes...........................................................................14
         (d)      Computational Errors...........................................................................14
         (e)      Choice of Law..................................................................................14
         (f)      Savings Clause.................................................................................14
         (g)      Change in Control..............................................................................14

</TABLE><PAGE>   1

                                                                    EXHIBIT 10.2

                                  PENTAIR, INC.

                   1999 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                AS AMENDED AND RESTATED EFFECTIVE AUGUST 23, 2000

<PAGE>   2

                                  PENTAIR, INC.

                   1999 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

         SECTION 1. NAME OF PLAN. This plan shall be known as the Pentair, Inc.
1999 Supplemental Executive Retirement Plan.

         SECTION 2. GENERAL DEFINITIONS. Unless the context requires otherwise,
when used herein the terms listed below, when capitalized or applied to such
capitalized terms, shall have the following meanings:

         (1) "ADJUSTMENT FACTOR" is the factor used in adjusting the Pension
Amount to reflect the period of time between the date a Participant has a
Termination of Employment and his or her Benefit Commencement Date. With respect
to a Participant who survives to his or her Benefit Commencement Date and has a
Termination of Employment:

         (a)      on or after attaining age fifty-five (55) and who is scheduled
                  to receive his or her Retirement Benefit as of the first
                  possible Benefit Commencement Date, the Adjustment Factor is
                  1.01134 (i.e., the Pension Amount is adjusted to reflect the
                  period beginning on the first day of the calendar month
                  immediately following the calendar month in which the
                  Participant incurs a Termination of Employment and ending on
                  the first possible Benefit Commencement Date);

         (b)      on or after attaining age fifty-five (55) and who properly and
                  timely elects a delayed Benefit Commencement Date, the
                  Adjustment Factor is the appropriate factor set forth in Table
                  1 to reflect the period beginning on the first day of the
                  calendar month immediately following the calendar month in
                  which the Participant incurs a Termination of Employment and
                  ending on the Benefit Commencement Date so elected;

         (c)      before attaining age fifty-five (55) and who is scheduled to
                  receive his or her Retirement Benefit as of the first possible
                  Benefit Commencement Date, the Adjustment Factor is the
                  appropriate factor set forth in Table 1 to reflect the period
                  beginning on the first day of the calendar month immediately
                  following the calendar month in which the Termination of
                  Employment occurred and ending on the first possible Benefit
                  Commencement Date; or

         (d)      before attaining age fifty-five (55) and who properly and
                  timely elects a delayed Benefit Commencement Date, the
                  Adjustment Factor is the appropriate factor set forth in Table
                  1 to reflect the period beginning on the first day of the
                  calendar month immediately following the calendar month in
                  which the Termination of Employment occurred and ending on the
                  Benefit Commencement Date so elected.

         (2) "ADMINISTRATOR" is the Company.

         (3) "BENEFICIARY" is a person entitled to receive benefits, if any,
payable under the Plan after a former Participant's death.

                                      -1-
<PAGE>   3

         (4) "BENEFIT COMMENCEMENT DATE" is the first day of the first calendar
month as of which a Participant's Retirement Benefit is payable. The first
possible Benefit Commencement Date is the later of (i) the first day of the
calendar month immediately following the calendar month which includes the
Participant's fifty-fifth (55th) birthday and (ii) the first day of the third
calendar month immediately following the calendar month in which the Participant
has a Termination of Employment; the last possible Benefit Commencement Date is
the later of (i) the Participant's first possible Benefit Commencement Date and
(ii) the first day of the calendar month immediately following the calendar
month which includes the Participant's sixty-seventh (67th) birthday; a
permissible Benefit Commencement Date is any such date beginning with the first
possible Benefit Commencement Date and ending with the last possible Benefit
Commencement Date; and a delayed Benefit Commencement Date is any permissible
Benefit Commencement Date other than (i) the Participant's first possible
Benefit Commencement Date and (ii) the Participant's last possible Benefit
Commencement Date if such date is the same date as the first possible Benefit
Commencement Date.

         (5) "BENEFIT SERVICE" is the number of Years of Service during which an
individual completes 1,000 Hours of Service as an Eligible Employee.

         (6) "BENEFIT SERVICE DATE" is the date from and after which an
individual may earn Benefit Service. An individual's Benefit Service Date shall
be listed on Schedule 1.

         (7) "BENEFIT SERVICE PERCENTAGE" is the percentage equal to the product
of a Participant's Benefit Service multiplied by fifteen percent (15%).

         (8) "CHANGE IN CONTROL" is a change in control of the Company as
defined in the KEESA.

         (9) "CODE" is the Internal Revenue Code of 1986, as amended.

         (10) "COMMITTEE" is the Compensation and Human Resources Committee of
the Board of Directors of the Company.

         (11) "COMPANY" is Pentair, Inc., a Minnesota corporation.

         (12) "COMPENSATION" is any item or class of remuneration or part
thereof listed or described in the left-hand column of Schedule 3 and not any
such items listed or described in the right-hand column of Schedule 3. In the
event a remuneration item is not listed or described in Schedule 3, the
Administrator shall determine whether such item is included or excluded from
Compensation by taking into account the nature of the item and its similarity to
an item which is so listed.

         (13) "CONVERSION FACTOR" is the factor used to convert the Pension
Amount into the Normal Form of Benefit and shall be 113.4.

         (14) "COVERED TERMINATION" is a covered termination, as defined in the
KEESA, which entitles a Participant to a termination payment pursuant to
Sections 8 and 9(a) of the KEESA.

                                      -2-
<PAGE>   4

         (15) "DISABLED" or "DISABILITY" is a physical or mental condition,
resulting from sickness or injury, other than an injury which is self-induced,
which would entitle the Participant to permanent and total disability benefits
under the Company's long-term disability plan (regardless of whether the
Participant is covered by such plan).

         (16) "EFFECTIVE DATE" of the Plan is January 1, 1999; the effective
date of this amended and restated Plan document is August 23, 2000.

         (17) "ELIGIBLE EMPLOYEE" is an individual who, on or after the
Effective Date of the Plan, is (i) a full time employee of a Group member (ii) a
citizen or lawful permanent resident of the United States, and (iii) either (x)
an officer of the Company appointed by the Company's Board of Directors or (y)
the President of a substantial, operating Group member other than the Company or
comparable position (e.g., head of a major operating division of a Group member)
who has been nominated by the Company's Chief Executive Officer for
participation in the Plan and such participation has been approved by the
Committee; provided, however, the Committee may waive the requirement that an
individual be a U.S. citizen or lawful permanent resident and, with respect to
such an individual, may modify other aspects of the Plan if, in the Committee's
sole discretion, such waiver or modification, or both, is appropriate under the
circumstances and given tax and other governmental regulatory provisions
applicable to such individual and his or her Employer Company.

         (18) "EMPLOYER COMPANY" is the Group member which employs a Participant
as of the date the Participant has a Termination of Employment.

         (19) "ERISA" is the Employee Retirement Income Security Act of 1974, as
amended.

         (20) "FINAL AVERAGE COMPENSATION" is the average Compensation
determined by averaging Compensation in those five (5) consecutive calendar
years out of the last ten (10) consecutive calendar years, ending with the
calendar year which ends coincident with or immediately preceding the date the
Participant has a Termination of Employment or otherwise ceases to be an
Eligible Employee, whichever occurs first, for which the average Compensation is
the highest.

         Notwithstanding the immediately preceding paragraph, Final Average
Compensation shall not be less than the average Compensation for the sixty (60)
months immediately preceding the date the Participant has a Termination of
Employment or otherwise ceases to be an Eligible Employee, whichever occurs
first, determined as the sum of Compensation in the final calendar year of such
employment plus Compensation in each of the four (4) calendar years preceding
the final calendar year of such employment plus a percentage of the Compensation
for the entire fifth calendar year preceding the final calendar year of such
employment; such percentage shall be determined as twelve minus the number of
full calendar months for which Compensation was payable in the final calendar
year of such employment divided by the number of months for which Compensation
was paid in the fifth calendar year preceding the final calendar year of such
employment.

         (21) "GROUP" is the Company and any other corporation, business trust,
partnership, joint venture, limited liability company, or other legal entity, in
which the Company owns (directly or indirectly) fifty percent (50%) or more of
the voting stock or rights analogous to voting stock. Any

                                      -3-
<PAGE>   5

such other corporation, business trust, partnership, joint venture, limited
liability company, or other legal entity shall be considered a member of the
Group only for the period such ownership exists.

         (22) "HOUR OF SERVICE" has the meaning provided in Section 3(d)(1).

         (23) "JOINT AND SURVIVOR ANNUITY" is a monthly annuity (rounded to the
nearest whole dollar amount) commencing as of the Participant's Benefit
Commencement Date, which is the actuarial equivalent (determined by applying the
factors set forth in Table 2) of the Participant's Normal Form of Benefit
commencing as of the same date, under which the last monthly payment is made for
the month in which the Participant dies or, if the Participant is survived by
the Spouse to whom the Participant was married on the Benefit Commencement Date,
the month in which such surviving Spouse dies, and under which the monthly
benefit payable to such Spouse surviving is equal to the monthly benefit payable
during the life of the Participant.

         (24) "KEESA" is the Key Executive Employment and Severance Agreement
between the Company and key executives, as approved by the Company's board of
directors effective August 23, 2000.

         (25) "NORMAL FORM OF BENEFIT" is a monthly annuity, commencing as of
the Participant's Benefit Commencement Date, payable for a term certain of one
hundred eighty (180) consecutive months, and shall be determined by dividing the
Participant's Pension Amount by the Conversion Factor, with such monthly annuity
rounded to the nearest whole dollar amount.

         (26) "PARTICIPANT" is an Eligible Employee who has become covered by
the Plan. Once an individual has become so covered, he or she shall remain a
Participant, except as provided in Section 3, until the first to occur of his or
her death and Termination of Employment for a reason other than death; provided,
however, if the individual has a non-forfeitable right to a Retirement Benefit
as of the date he or she has such a Termination of Employment (determined
without regard to the forfeiture provision of Section 6(b) unless such section
has been actually enforced as to such individual), then absent death the
individual shall remain a Participant until the individual has received his or
her entire Retirement Benefit or the Retirement Benefit has been forfeited as
provided for in Section 6(b).

         (27) "PARTICIPATION DATE" is the later of (i) the Plan Effective Date
and (ii) the earlier of (x) the date an individual becomes an Eligible Employee
described in Section 2(17)(iii)(x) and (y) for an individual described in
Section 2(17)(iii)(y), the date such individual's nomination is approved by the
Committee or such earlier date as may be provided in approving such nomination.
An individual's Participation Date shall be listed on Schedule 1.

         (28) "PENSION AMOUNT" is an amount equal to the Participant's Final
Average Compensation multiplied by his or her Benefit Service Percentage, with
such amount then multiplied by the Adjustment Factor if the Participant survives
to his or her Benefit Commencement Date.

         (29) "PLAN" is the retirement plan herein described. When this term is
modified by or with reference to a certain date (e.g., Plan as in effect before
year XXXX), it shall refer to the Plan as described in the Plan document in
effect for the period referenced.

                                      -4-
<PAGE>   6

         (30) "RETIREMENT BENEFIT" is the Plan monthly retirement benefit
payable under the Normal Form of Benefit or the Joint and Survivor Annuity.

         (31) "SPOUSE" is an individual, of a sex opposite to that of a
Participant, whose marriage to a Participant is recognized under the laws of the
United States (or one of the United States) or any other generally recognized
jurisdiction.

         (32) "TERMINATION OF EMPLOYMENT" is any event by which there is no
longer an employer-employee relationship between any Group member and an
individual, including such termination caused by the individual's retirement,
resignation, dismissal, death, or Disability; provided, however, in the event of
Disability for purposes of the Plan the date of Termination of Employment shall
be as determined under Section 3(e).

         (33) "YEAR OF SERVICE" is a calendar year in which an individual
completes 1,000 Hours of Service.

         Section 3. PARTICIPATION, VESTING AND BENEFIT SERVICE, AND RULES
GOVERNING THE CREDITING OF SERVICE, DISABILITY AND THE DETERMINATION OF
COMPENSATION AND FINAL AVERAGE COMPENSATION. (a) Participation. (1) General. The
primary purpose of the Plan is to provide supplemental retirement benefits to
Eligible Employees, and it is intended that such employees constitute a select
group of management or highly paid employees, within the meaning of ERISA
section 201(2), of the Group. Except as provided in Section 3(d)(6), in the
event an individual who is not within such a select group becomes covered by the
Plan, then notwithstanding any Plan provision to the contrary such individual's
participation in the Plan shall immediately cease and retroactively he or she
shall be treated as never having been covered by the Plan.

                  Because the Plan is described in ERISA section 201(2), and
other ERISA provisions corresponding thereto, certain provisions of ERISA do not
apply to it and the benefits earned thereunder, including the provisions of
Parts 2, 3, and 4 of Title I of ERISA relating to participation and vesting,
funding, and fiduciary responsibilities, respectively. In addition, the Plan is
not a tax-qualified plan under the Code, and thus the Plan and benefits paid
hereunder are not subject to certain rules which apply to benefits payable under
such qualified plans including the annual compensation and benefit limits under
Code sections 401(a)(17) and 415, respectively, and the manner in which a
Participant's or Beneficiary's Plan benefits are subject to income tax.

                  (2) Acceptance. Unless an Eligible Employee declines to become
covered by the Plan by delivering a written notice to that effect to the
Administrator within thirty (30) days of what otherwise would be his or her
Participation Date (or such later date as the Administrator may prescribe), he
or she shall have accepted all the terms and conditions of the Plan, including
the provisions of Section 6, and without regard to whether he or she becomes
entitled to receive a benefit under the Plan. If such a declination is made, the
individual shall not be covered by the Plan and no benefits shall be payable
hereunder to or with respect to such individual; provided, however, such a
declination shall not constitute a waiver, release, or modification of any
restrictions or covenants relating to such individual's employment or
termination of employment arising under agreements apart from the Plan or under
applicable law.

                                      -5-
<PAGE>   7

                  (3) Initial Participants. The names of the Eligible Employees
covered by the Plan as of the Effective Date as of this amended and restated
Plan document and their Participation and Benefit Service Dates are listed on
Schedule 1. From time to time Schedule 1 shall be amended to list the names of
additional Eligible Employees who have become covered by the Plan and their
Participation and Benefit Service Dates.

                  (4) Existing SERP. An individual listed on Schedule 2 shall be
covered by the Pentair, Inc. Supplemental Executive Retirement Benefit Plan,
adopted on June 16, 1988, and shall not be an Eligible Employee or otherwise
covered by the Plan. Such an individual's supplemental retirement benefits and
other benefits related thereto, if any, and the conditions, covenants, and
rights of the parties with respect thereto, shall be as determined solely under
such plan.

         (b) Vesting. (1) General. Except as otherwise expressly provided
herein, all benefits otherwise payable under the Plan to or with respect to a
Participant shall be forfeited if the Participant has a Termination of
Employment before completing five (5) Years of Service.

                  (2) Death or Disability. A Participant who incurs a
Termination of Employment by reason of his or her death or Disability shall be
considered to have completed five (5) Years of Service, immediately before such
event, for purposes of applying paragraph (1) immediately preceding.

                  (3) Automatic Acceleration of Vesting. If a Participant has
entered into a KEESA and such Participant incurs a Covered Termination, then
immediately before such termination the Participant shall be considered to have
completed five (5) Years of Service for purposes of applying paragraph (1)
immediately preceding.

                  (4) Other Forfeiture. Notwithstanding the foregoing provisions
of this Section 3(b) or the number of Years of Service completed or deemed
completed, except as otherwise provided under the Plan all benefits otherwise
payable under the Plan to or with respect to a Participant or former Participant
shall be subject to forfeiture to the extent provided in Section 6(b).

         (c) Benefit Service. (1) Benefit Service Date. Except as otherwise
provided herein, an individual's Benefit Service Date shall be the same date as
his or her Participation Date.

                  (2) Benefit Service Date of Effective Date Participants. The
Benefit Service Date of an individual who is a Participant as of the Effective
Date as of this amended and restated Plan document shall be the date listed on
Schedule 1 for such individual and such date may precede the individual's
Participation Date.

                  (3) Benefit Service. An individual who ceases to be a
Participant and incurs a Termination of Employment by reason of death shall be
considered to have completed a Year of Service in the year of death for purposes
of determining the Benefit Service earned by such individual, regardless of the
Hours of Service credited for such year.

                  (4) Benefit Service Upon a Covered Termination. If a
Participant has entered into a KEESA and such Participant incurs a Covered
Termination, then immediately before such termination the Participant shall be
credited with additional Years of Service for determining Benefit

                                      -6-
<PAGE>   8

Service equal to the lesser of (i) three (3) and (ii) the greater of (x) seven
(7) minus the Benefit Service credited to such Participant under the Plan,
determined without regard to this Section 3(c)(4), as of the first day of the
Plan Year beginning immediately after such termination and (y) zero (0). The
Benefit Service provided for by this Section 3(c)(4) shall be in addition to a
Participant's Benefit Service under the Plan determined without regard to this
Section 3(c)(4).

         (d) Service Credits. (1) General. Subject to other Plan provisions, a
Participant's Years of Service shall be based upon the completion of 1,000 Hours
of Service during a calendar year. For this purpose an Hour of Service is each
hour which an individual is paid or entitled to payment from a Group member for
(i) the performance of duties as its employee and (ii) reasons related to such
employment but other than for the performance of duties, such as vacation,
illness, jury duty, military duty or leave of absence other than (x) payments
made or due under a plan maintained solely to comply with worker's compensation,
unemployment compensation, or disability insurance laws, or (y) payments made
solely for reimbursement of medical or medically related expenses; provided,
however, no more than 501 Hours of Service shall be credited under clause (ii)
immediately preceding for any single continuous period during which no duties as
such an employee are performed. An individual shall not receive duplicate Hour
of Service credits for the same period of service or absence.

         Regardless of the actual number of Hours of Service completed during a
year, in determining whether 1,000 Hours of Service have been completed during a
calendar year an individual shall be credited with forty-five (45) Hours of
Service for each calendar week the individual is otherwise credited with an Hour
of Service pursuant to the immediately preceding paragraph.

                  (2) No Vesting Service Before Participation Date. No Year of
Service completed before the calendar year which includes an individual's
Participation Date shall be considered for purposes of applying Section 3(b)(1).

                  (3) Non-Duplication of Service Credit. In no event shall a
Participant be credited for more than one (1) Year of Service with respect to
any one (1) calendar year. In the event service credit for a period must be
provided under the Plan by reason of applicable law (e.g., USERRA) and such
credit duplicates service credit otherwise provided under the Plan, then the
service crediting provision which is most beneficial to the Participant under
the circumstances shall be applied but without duplication of service credit for
the same period.

                  (4) Leaves of Absence. In the sole discretion of the
Committee, a Participant may be granted service credit for a period of absence
from active employment due to illness, personal circumstances, or such other
events as the Committee may authorize under the circumstances and in such amount
or manner of service credit as the Committee deems appropriate under the
circumstances, but in no event shall such service credit duplicate any such
credit otherwise provided under the Plan for the same period. Unless otherwise
expressly provided by the Committee, however, in no event shall a Participant
earn Benefit Service during the period of such absence.

                  (5) Break in Service. Except as determined in the sole
discretion of the Committee, if a Participant incurs a Termination of Employment
before he or she has a nonforfeitable right to a Retirement Benefit by reason of
Section 3(b)(1) and thereafter returns to employment with a Group member, all
service credits earned prior to such termination shall be

                                      -7-
<PAGE>   9

ignored and, if the individual again becomes a Participant, the individual's
service credits under the Plan shall be determined as if he or she had not been
previously employed by any Group member.

                  (6) Transfer. If an individual becomes a Participant and
subsequently, and without a Termination of Employment, becomes employed as other
than an Eligible Employee, then upon the occurrence of such event the individual
shall cease all active participation under the Plan (e.g., he or she will no
longer accrue benefits under the Plan). To the extent permitted without causing
the Plan to be outside the provisions of ERISA section 202(1), such an
individual shall continue to be covered by the Plan with respect to determining
his or her vesting rights and for purposes of applying Plan provisions related
to the payment of nonforfeitable benefits, except (i) such an individual may not
elect a delayed Benefit Commencement Date and (ii) the Adjustment Factor shall
be determined as if the Participant had incurred a Termination of Employment as
of the date he or she becomes employed as other than an Eligible Employee. If
such continued treatment of the individual would cause the Plan to be outside
the provisions of ERISA section 202(1), or the Committee in its sole discretion
determines that such continuation may have that result, then notwithstanding any
other Plan provisions (i) if the individual had a non-forfeitable right
(determined without regard to Section 6(b) unless such section has been actually
enforced as to such individual) to a Retirement Benefit as of the date of such
transfer, the Pension Amount (determined by applying an Adjustment Factor of one
(1)) shall be immediately paid to the individual in a lump sum; provided,
however, the Committee, in its sole discretion, may direct that such Pension
Amount immediately commence to be paid to the individual in the Normal Form of
Benefit; and (ii) if the individual had no such non-forfeitable right, he or she
shall be treated as described in the last sentence of the first paragraph of
Section 3(a)(1).

         (e) Disability. (1) General. This Section describes special service
credit and other rules which apply to a Participant who becomes Disabled before
age sixty-five (65) and while he or she is an Eligible Employee (i.e., a
"Disabled Participant"). In no event shall a Participant be considered Disabled
until and unless he or she supplies all information and takes all acts (e.g.,
submits to medical examinations) reasonably requested by the Administrator to
establish the fact of his or her Disability.

                  (2) Credit for Benefit Service. A Disabled Participant shall
receive credit for Benefit Service during the Disability period. This service
credit shall be determined, without duplication of other service credit provided
under the Plan for the same period, based upon the complete whole years (with
fractional years being rounded to the nearest whole year) which elapse during
the Disability period. The Disability period shall begin on the date of
Disability as determined by the Administrator, taking into account any
applicable waiting period (e.g., end of short-term disability period) prescribed
by the Administrator for this purpose, and shall end on the earlier of (i) the
date the Participant is no longer Disabled or is considered not to be Disabled,
(ii) the date the Disabled Participant attains age sixty-five (65), (iii) the
date of the Participant's death, and (iv) if the Participant elects to receive a
Retirement Benefit before the dates described in clauses (i), (ii) and (iii)
immediately preceding, the end of the calendar month immediately preceding the
Benefit Commencement Date. Except as otherwise inconsistent with other Sections
or parts of the Plan and solely for determining whether a Participant has
incurred a Termination of Employment under the Plan (e.g., determining when a
Participant is entitled to commence receiving the Retirement Benefit), a
Participant shall not be considered to have incurred a Termination of Employment
during the Disability period.

                                      -8-
<PAGE>   10

                  (3) Final Average Compensation. A Participant's Final Average
Compensation, determined as of the beginning of the Disability period, shall not
change during the Disability period. If a Disabled Participant recovers from the
Disability before attaining age sixty-five (65) and returns to employment as an
Eligible Employee, Final Average Compensation shall be determined as otherwise
provided under the Plan and by assuming the Participant's Compensation during
the Disability period was equal to the Participant's Final Average Compensation
as of the beginning of the Disability period.

                  (4) Recovery from Disability. If a Disabled Participant
recovers from the Disability prior to age sixty-five (65) and the Participant
does not return to employment with the Group, he or she shall be entitled to
Retirement Benefits in accordance with the other terms and provisions of the
Plan as modified by the provisions of this Section 3(e). If the Disabled
Participant recovers from the Disability prior to age sixty-five (65) and the
Participant returns to employment with a Group member as an Eligible Employee,
he or she shall be entitled to a Retirement Benefit in accordance with the terms
and provisions of the Plan as modified by the provisions of this Section 3(e),
and by taking into account the Participant's service and other relevant factors
after he or she returns to such employment. If the Disabled Participant does not
recover from the Disability prior to age sixty-five (65), he or she shall be
entitled to a Retirement Benefit commencing as of the first day of the month
after attaining such age; provided, however, in that event the Disabled
Participant may not elect a delayed Benefit Commencement Date.

                  (5) Death During the Disability Period. If a Disabled
Participant dies during the Disability period, a death benefit shall be paid
after such Disabled Participant's death to the extent provided in Section 4.

                  (6) Proof of Disability. The Administrator shall determine
whether and when a Participant is Disabled and may adopt such rules and
procedures as it deems appropriate for this purpose. Once a Participant is
determined to be Disabled, the Administrator may require the Participant to
verify that he or she remains Disabled, and such verification may include
requiring the Participant to submit to one or more medical examinations. If a
Participant fails to supply information or take action as requested by the
Administrator in order to determine whether the Participant is or remains
Disabled, the Participant shall not be considered Disabled or shall be
considered to have recovered from the Disability, as the case may be.

         (f) Compensation. (1) General. Compensation, and thereby Final Average
Compensation, shall be determined solely with respect to such remuneration
earned from and after a Participant's Benefit Service Date and during the period
of employment as an Eligible Employee. In the event a Participant is employed
with a Group member before becoming an Eligible Employee or, subject to the
provisions of Section 3(d)(6), after ceasing to be an Eligible Employee, the
Administrator shall determine the Compensation allocable to periods of such
employment in each capacity in such manner as it deems reasonable in its sole
discretion under the circumstances (e.g., allocation of MIP bonuses for the year
in which an individual is promoted to an Eligible Employee).

                  (2) Determination. The amount of Compensation, and thereby
Final Average Compensation, shall be as determined from the books and records of
the employing Group member and shall be determined on the basis of when the
Compensation is paid to the Participant; provided,

                                      -9-
<PAGE>   11

however, items of Compensation or portions thereof may be determined on the
basis of when the item is earned (in which case the item or portion shall not be
again counted as an item or portion of Compensation when paid) by the
Participant if and to the extent the Administrator determines such treatment is
appropriate under the circumstances (e.g., including MIP bonuses earned during
the final year of employment as Compensation before such bonus is actually paid;
including an amount deferred at the election of the Participant as Compensation
when it otherwise would have been paid but for such election).

                  (3) Less Than Five Years of Service. For purposes of
determining Final Average Compensation, if the Participant's relevant
Compensation history is for less than the stated period of time (e.g., less than
five (5) years; less than ten (10) years), then such actual period shall be
substituted in determining Final Average Compensation (e.g., if the individual
has six (6) years of Compensation history, the high five (5) consecutive years
within such six (6) years shall be used in determining the average; if the
individual has three (3) years of Compensation history, all such Compensation
shall be used in determining the average).

         SECTION 4. PAYMENTS IN THE EVENT OF DEATH BEFORE THE BENEFIT
COMMENCEMENT DATE. (a) General. This Section describes the pre-retirement death
benefit payable under the Plan to a Beneficiary under circumstances where an
individual who was a Participant immediately before his or her death dies before
the Benefit Commencement Date. Except as provided in Appendix A, this death
benefit shall be in lieu of any other benefits under the Plan with respect to
such a Participant.

         (b) Vested Participant. No death benefit shall be payable pursuant to
this Section 4 unless the deceased former Participant had a non-forfeitable
interest in his or her Retirement Benefit (determined without regard to the
forfeiture provision of Section 6(b) unless such section has been actually
enforced as to such individual) as of the date of death or as a consequence of
such death (e.g., death while in service with a Group member); provided,
however, such a Participant who otherwise had such a non-forfeitable interest
shall not be considered to have had such an interest if he or she is
subsequently determined to have forfeited such benefit as provided for in
Section 6(b), even if such action or determination is made after such
Participant's death.

         (c) Amount and Commencement of Benefit. (1) General. Except as
otherwise provided herein, the benefit payable to the Beneficiary shall be
payable in the same manner as the Normal Form of Benefit and shall commence as
of the later of the first day of the calendar month immediately following the
calendar month of such Participant's death and the first day of the calendar
month immediately following the calendar month in which such Participant, had he
or she survived, would have attained age fifty-five (55) or such earlier date as
may be provided by the Committee in its sole discretion. The benefit so payable
shall be determined by adjusting such Participant's Pension Amount by the
appropriate factor from Table 1 to reflect the period, if any, beginning on the
first day of the calendar month immediately following the calendar month in
which such Participant incurred a Termination of Employment and ending on the
commencement date described in the immediately preceding sentence, and then
dividing such Pension Amount as so adjusted by the Conversion Factor.

                  (2) Lump Sum. In the sole discretion of the Committee, and
notwithstanding the provisions of paragraph (1) immediately preceding, the death
benefit provided under this Section 4 may be paid to the Beneficiary in a lump
sum within sixty (60) days after the deceased former

                                      -10-
<PAGE>   12

Participant's death. The amount of the lump sum shall be the Pension Amount
adjusted by the appropriate factor from Table 1 to reflect the period, if any,
beginning on the first day of the calendar month immediately following the
calendar month in which such Participant incurred a Termination of Employment
and ending on the first day of the calendar month immediately following the
calendar month in which such Participant died.

         (d) Beneficiary. The identity of the Beneficiary and the rules with
respect to the payment of benefits to such Beneficiary shall be as provided
under Section 5.

         SECTION 5. PAYMENT OF RETIREMENT BENEFITS. (a) Application. No
Retirement Benefit shall be paid to a Participant unless and until he or she
applies for such benefits. The application shall be on such forms as the
Administrator may prescribe for this purpose, and shall include all information
the Administrator deems appropriate or useful for processing the benefit
application. The Administrator shall inform a Participant of the need to apply
for the Retirement Benefit and the information necessary to process such
benefits. If there is a delay in the actual commencement of the Retirement
Benefit past the date elected by the Participant as the Benefit Commencement
Date or past the Benefit Commencement Date otherwise provided under the Plan,
the Benefit Commencement Date as so elected or determined shall not change and
the Participant shall be entitled to receive those benefits which would have
been paid on or after such date, but for the delay, but without interest
thereon.

         (b) Benefit Commencement Date. (1) General. Except as otherwise
provided herein, payment of a Participant's Retirement Benefit shall commence as
of the first possible Benefit Commencement Date.

                  (2) Participant's Election of Delayed Benefit Commencement
Date. (A) General. Except as otherwise provided herein, a Participant may elect
a delayed Benefit Commencement Date, or change any prior such election, at any
time prior to what otherwise would be his or her first possible Benefit
Commencement Date.

                           (B) Disability. A Participant who becomes Disabled
may not elect a delayed Benefit Commencement Date; provided, however, if the
Disability period for a Participant ends by reason of the Participant's recovery
from the Disability and he or she then returns to employment as an Eligible
Employee, the Participant's right to elect a delayed Benefit Commencement Date
shall be determined without regard to this Section 5(b)(2)(B).

                           (C) Election Procedures. The Administrator shall
prescribe such forms and manner by which a Participant may elect a delayed
Benefit Commencement Date. No purported election of a delayed Benefit
Commencement Date shall be valid unless made in the form and manner as so
prescribed.

                  (3) Termination of Employment. Except as otherwise provided
under the Plan, no Retirement Benefit shall be paid to a Participant prior to
the time he or she has a Termination of Employment.

         (c) Form of Retirement Benefit. (1) General. Except as otherwise
provided herein, a Participant's Retirement Benefit shall be paid in the Normal
Form of Benefit.

                                      -11-
<PAGE>   13

                  (2) Married Participant. A Participant who has a Spouse as of
the Benefit Commencement Date may elect to receive his or her Retirement Benefit
as the Joint and Survivor Annuity, or revoke any prior such election, at any
time prior to the Benefit Commencement Date. Such election or revocation shall
be made in such form and manner as prescribed by the Administrator, and no such
purported election or revocation shall be valid unless made in the form and
manner as so prescribed. The election of a Joint and Survivor Annuity or the
revocation of a prior such election shall be made solely by the Participant and
shall not require the consent of such Participant's Spouse or any other person.
In the event a Participant elects the Joint and Survivor Annuity and the
Participant's Spouse does not survive to the Benefit Commencement Date, such
election shall be automatically revoked.

         (d) Re-Employment after Commencement of Benefits. (1) General. Except
as determined in the sole discretion of the Committee, if a Participant has
commenced receiving a Retirement Benefit and subsequent to such commencement
again becomes an employee of a Group member, then payment of such benefit shall
cease during the period of re-employment. When the Participant again terminates
such employment, payment of the Retirement Benefit in the same form of benefit
as was being paid before such suspension shall recommence as of the first day of
the calendar month immediately following the calendar month in which such
re-employment ceased ("Recommencement Date"), and the monthly amount thereof
shall be adjusted for the period of suspension. If the Participant was receiving
his or her Retirement Benefit under the Normal Form of Benefit before such
suspension, the adjustment for the period of suspension shall be an increase in
the monthly annuity so that upon recommencement the amount of each monthly
annuity equals the monthly annuity being paid before such suspension, multiplied
by the appropriate factor set forth in Table 1 to reflect the whole calendar
months of such suspension. If the Participant was receiving his or her
Retirement Benefit under the Joint and Survivor Annuity, the adjustment for the
period of suspension shall be such that the monthly amount of the Joint and
Survivor Annuity redetermined as of the Recommencement Date is the actuarial
equivalent of the monthly amount of such annuity as of the Benefit Commencement
Date, after taking into account the value of benefits paid before such
suspension. For this purpose, an actuarial equivalent shall be determined by
applying the actuarial factors used in preparing Table 2 and the ages of the
Participant and Spouse as the Recommencement Date shall be determined by
assuming their survival to such date.

                  (2) Additional Benefit. In the event the Participant so
returns to employment as an Eligible Employee, (i) when the Participant again
terminates employment payment of his or her Retirement Benefit attributable to
service before such suspension shall recommence and in an amount determined by
applying the immediately preceding paragraph (1) and (ii) the Retirement Benefit
and Section 4 death benefit payable, if any, for the period of such
re-employment shall be determined and paid as if the Participant had no prior
service with a Group member except all of such a Participant's Years of Service,
whether earned before or after such re-employment, shall be aggregated for
purposes of applying Section 3(b)(1).

         (e) Normal Form of Benefit and Death Before End of 180 Month Period.
(1) Death On or After the Benefit Commencement Date. If a Participant to whom
the Normal Form of Benefit is being paid dies on or after the Benefit
Commencement Date and before the end of the one hundred eighty (180) month
period over which such benefit is payable, the monthly benefit for the balance
of such period shall continue to be paid to such Participant's Beneficiary.

                                      -12-
<PAGE>   14

                    (2) Participants Described in Section 5(d). A Participant
described in Section 5(d)(1) who was receiving the Normal Form of Benefit before
such suspension and who dies during the period of such re-employment shall be
considered as described in paragraph (1) immediately preceding with respect to
the Retirement Benefit earned before such re-employment.

                    (3) Others. The benefit payable after the death of any
former Participant not described in paragraphs (1) or (2) immediately preceding,
and where the Retirement Benefit is not payable under the Joint and Survivor
Annuity, shall be determined under Section 4.

         (f) Beneficiary. (1) General. Except as otherwise limited by paragraph
(2) immediately following, a Participant may at any time and without the consent
of any other person designate a Beneficiary, or change any prior such
designation, entitled to receive any Plan benefits payable after the
Participant's death, whether payable pursuant to Section 4 or under the Normal
Form of Benefit. No such purported designation shall be effective unless it is
made in such form and manner as prescribed by the Administrator. No person shall
be recognized as a Beneficiary unless and until such person provides such
information or certifications as required under the circumstances by the
Administrator. If there is a delay in the actual commencement of payment of the
benefit to the Beneficiary past the date otherwise provided under the Plan
(e.g., there is a delay in determining the person entitled to receive such
benefits), the Beneficiary shall be entitled to receive those benefits which
would have been paid to such Beneficiary on or after such date, but for the
delay, but without interest thereon.

                  (2) Married Participants. The sole primary Beneficiary of (i)
a Participant or former Participant who receives his or her Retirement Benefit
in the Normal Form of Benefit and who has a Spouse as of such Participant's
Benefit Commencement Date or (ii) a former Participant with respect to whom a
benefit is payable under Section 4, and who is survived by a Spouse, shall be
such Spouse. In the event such Spouse (x) waives the right to be the sole
primary beneficiary of the Participant in such form and manner as prescribed by
the Administrator, (y) does not survive such Participant under the circumstances
described in clause (i) immediately preceding or (z) does not survive the one
hundred eighty (180) day term certain period over which such benefits are
payable, such Participant's Beneficiary with respect to any benefits payable
after such Participant's death shall be determined as otherwise provided in this
Section 5(f) without regard to this paragraph (2).

                  (3) Default Takers. If a Participant or former Participant
fails to make a valid beneficiary designation, makes such a designation but is
not survived by any of the persons named as a primary or contingent beneficiary,
makes such a designation but the beneficiary named does not survive the period
over which the benefits are paid and no other designated beneficiary is then
entitled to the share of such deceased beneficiary, or makes such a designation
but such designation does not effectively dispose of all benefits payable after
such Participant's death, then, and to the extent such benefits are payable
after such Participant's death, all such benefits shall be paid to the executor
or personal representative of such Participant's estate or, if there is no such
person, then in accordance with the laws of intestate succession of the
jurisdiction in which such Participant was domiciled as of the date of death.

         (g) Non-Alienation. No right or benefit under this Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, or charge, and any

                                      -13-
<PAGE>   15

attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or
charge the same shall be void. No such right or benefit shall be in any manner
liable for or subject to the debts, contracts, liabilities, engagements, or
torts of any person entitled to such right or benefit, and no such right or
benefit shall be subject to garnishment, attachment, execution, or levy of any
kind.

         If a Participant or Beneficiary becomes bankrupt or attempts to
anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge such
right or benefit, or if the right or benefit to which such person may be
entitled is held by any court to be subject to garnishment, attachment,
execution, or levy of any kind, then in the discretion of the Administrator such
right or benefit shall cease and terminate and the same shall be held or
applied, in whole or in part, to or for the benefit of such Participant or
Beneficiary (or children or other dependents thereof) or any of them, in such
manner and in such proportion as the Administrator shall deem proper. Any
payment so made or applied shall be conclusively deemed to have been made for
the benefit of such Participant or Beneficiary.

         (h) Miscellaneous. (1) Payment on Behalf of Incompetent Participants or
Beneficiaries. If the Administrator determines that any Participant or
Beneficiary to whom a benefit is payable under the terms of the Plan is unable
to care for his or her affairs because of illness, accident, or mental or
physical incompetency, the Administrator may cause the payments due to such
Participant or Beneficiary to be paid to another person for the benefit of such
Participant or Beneficiary. Any such payment shall be deemed a payment to the
Participant or Beneficiary and shall operate as a complete discharge of all
liability of the Plan with respect to such payments.

                  (2) Mailing and Lapse of Payments. All payments under the Plan
shall be delivered in person or mailed to the last address supplied to the
Administrator by the Participant or Beneficiary, as the case may be. If after
reasonable inquiry the Administrator cannot locate the person entitled to the
Plan benefits, then payment of such benefits shall be suspended. If such person
is thereafter located, however, then such suspension shall cease and the person
shall be entitled to receive all benefits he or she would otherwise have been
entitled to receive under the Plan but for such suspension, but without interest
thereon.

                  (3) Overpayment. If the benefits paid to any person exceed the
benefits to which the person was actually entitled, then future benefits shall
be reduced in such manner as the Administrator deems appropriate or, if such
reduction is not possible, the Administrator may undertake such actions as it
deems reasonable to recover the excess.

                  (4) Address and TIN. Each Participant or Beneficiary shall be
responsible for furnishing the Administrator with his or her correct current
address and taxpayer identification number.

         SECTION 6. CONFIDENTIALITY, COVENANTS NOT TO COMPETE, AND
NON-SOLICITATION. (a) General. Each Eligible Employee acknowledges that as a key
executive of the Company or other Group member he or she has become familiar and
will continue to be familiar with the trade secrets, know-how, executive
personnel, strategies, other confidential information and data of the Group and
its members. Each Eligible Employee further acknowledges that the financial
security of the Group and the Company's shareholders depends in large part on
the efforts of executives like the Eligible Employee, and that a basic premise
for the Plan is to compensate such individuals for their efforts in causing the
Group to grow and prosper, thereby helping to insure the Group's

                                      -14-
<PAGE>   16

financial future for years well beyond the time the individual leaves.
Therefore, in consideration of the extension of the Plan to an Eligible
Employee, he or she agrees that (i) after Termination of Employment he or she
shall not (directly or indirectly), without the Company's prior written consent,
use or disclose to any other person any confidential information or data
concerning the Company or other Group members or former Group members, and (ii)
for a period of three (3) years from Termination of Employment he or she shall
not (directly or indirectly) and without the Company's prior written consent:

         (1)      own, manage, control, participate in, consult with or render
                  services of any kind for any concern which engages in a
                  business which is competitive with any business being
                  conducted, or contemplated being conducted, by the Group as of
                  the date of Termination of Employment;

         (2)      become an employee or agent of any publicly traded corporation
                  or other entity, or any division or subsidiary of such a
                  corporation or entity, where more than 5% of such
                  organization's business is in competition with any business
                  being conducted, or contemplated being conducted, by the Group
                  as of the date of Termination of Employment, unless the annual
                  sales of such organization do not exceed $40 million;

         (3)      participate in any plan or attempt to acquire the business or
                  assets of the Group or control of the voting stock of any
                  member thereof, or in any manner interfere with the control of
                  the Company, whether by friendly or unfriendly means; or

         (4)      induce or attempt to induce any individual to leave the employ
                  of the Company or other Group member or hire any such
                  individual who approaches him or her for employment.

If at the time of enforcement of the terms of this Section 6, a court shall hold
that the duration, scope or area of restriction stated herein are unreasonable
under the circumstances then existing, the Eligible Employee agrees that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope, or area.

         (b) Forfeiture and Other Remedies. Upon any breach of the covenants
described in this Section, all benefits then due under the Plan (and all
benefits which otherwise would be due under the Plan in the future) to the
Eligible Employee or his or her beneficiaries shall be forfeited. The covenants
described in this Section run in favor of and shall be enforceable by the
Company or its assigns. The Company shall be entitled to all legal and equitable
remedies to prevent, cure and compensate for a breach of the covenants described
herein, without posting of bond, and all such remedies shall be in addition to
such forfeiture. By accepting coverage under the Plan, each Eligible Employee
acknowledges and agrees that his or her breach or breach of the covenants
described in this Section 6 will result in irreparable harm to the Company.
Therefore, to remedy or prevent such a breach the Company shall be entitled to
enjoin the Eligible Employee from taking or failing to take such actions as will
or which may be reasonably considered to cause such a breach, including an
injunction to prevent the Eligible Employee from breaching the terms of this
Section 6.

         SECTION 7. FUNDING AND PAYMENT OF BENEFITS. (a) General. Except as
expressly provided herein, the Plan is an unfunded deferred compensation
arrangement. No Group member

                                      -15-
<PAGE>   17

shall establish or is required to establish any trust to fund benefits provided
under the Plan, and no such member shall establish or is required to establish
any type of earmarking or segregation of its assets to provide for such
benefits. In the event of default of a Group member's obligations hereunder,
each Participant and his or her beneficiaries shall have no greater entitlements
or security than does a general creditor of the Group member.

         (b) Employer Company. Except as otherwise expressly provided herein,
the Employer Company shall pay or provide for the payment of benefits hereunder.
If the Employer Company does not timely pay such benefits, then, except as
described in subsection (c) immediately following, the sole recourse of the
claimant Participant or Beneficiary is against such Employer Company and no
other member of the Group shall be responsible to pay or provide for the payment
of such benefits or liable for the nonpayment thereof.

         (c) Company Assumption of Liability. Under the following circumstances,
the Company shall assume and be responsible for the payment of benefits
hereunder even though it is not the Employer Company:

         (i)      the Employer Company is not participating in the Plan as of
                  the date benefits hereunder are scheduled to commence to a
                  Participant or his or her beneficiaries;

         (ii)     the Employer Company does not timely pay or provide for the
                  payment of benefits hereunder and such failure is not
                  corrected within thirty (30) days; or

         (iii)    the Participant has a Termination of Employment due to a sale
                  of the stock (or rights analogous to stock) or assets of a
                  Group member, and the Participant has earned a non-forfeitable
                  Retirement Benefit (determined without regard to the
                  forfeiture provision of Section 6(b) unless such section has
                  been actually enforced as to such individual) on or before the
                  date of such termination.

The Company's obligation under paragraph (i) immediately preceding shall cease
when the Employer Company agrees to participate in the Plan. The Company's
obligation under paragraph (ii) immediately preceding shall cease when the
Employer Company is current on its payment of benefits. The Company's obligation
under paragraph (iii) immediately preceding shall not come into effect (or if
previously effective, shall cease) as of the date the person who purchased such
stock or assets, or a person who controls such person, agrees in writing to
assume the liability for the benefits the Participant has then earned hereunder;
provided, however, that upon a Change in Control the Company, any person in
control of the Company, and the Employer Company if not the Company, shall be
jointly and severally responsible for payment of benefits hereunder regardless
of the other provisions of this Section 7 and the assumption of such liability
by another person shall not discharge the Company, any person in control of the
Company, and such Employer Company from liability hereunder.

         (d) Participation by Other Group Members. A member of the Group may
join in this Plan by adopting a written resolution of its board of directors,
and delivering such resolution to the Administrator. Any Group member, other
than the Company, may end its participation under the Plan by a written
resolution of its board of directors delivered to the Committee, provided,
however, that no such resolution ending participation shall be effective until
thirty (30) days after it is received

                                      -16-
<PAGE>   18

by the Administrator. By agreeing to join in the Plan, each Group member agrees
to pay or provide for the payment of benefits hereunder to those Participants
and their beneficiaries with respect to whom such member is the Employer
Company. No such member, other than the Company, shall have any power or
authority to terminate, amend, administer, modify, or interpret the Plan, all
such powers being reserved to the Administrator and the Committee.

         SECTION 8. DEFAULT. Should the Employer Company (and the Company to the
extent provided for in Section 7(c)) fail to pay when due any benefit under the
Plan to or with respect to a Participant or Beneficiary and such failure to pay
continues for a period of sixty (60) days from receipt of a written notice of
nonpayment from the affected Participant or Beneficiary, the Employer Company
(and the Company to the extent provided in Section 7(c)) shall be in default
hereunder and shall pay to the Participant or Beneficiary the benefits past due
and the reasonable costs of collection of any such amount, including reasonable
attorney's fees and costs; provided, however, if the Administrator in good faith
disputes the amount of such benefit due or whether a person is entitled to such
a benefit, then to the extent and duration of such a dispute the Employer
Company (and the Company to the extent provided for in Section 7(c)) shall not
be considered in default hereunder; provided further, however, a Participant for
whom a KEESA becomes operative due to a Change in Control, and regardless of
whether such Participant incurs a Covered Termination, shall be entitled to
payment or reimbursement of such costs of collection as provided under Section
13(g).

         SECTION 9. ADMINISTRATION OF THE PLAN. (a) General. The Company,
through its designated officers and agents, shall be the Administrator and
thereby handle the day-to-day administration of the Plan and such other
administrative duties as are allocated to the Administrator under the Plan. All
such administrative duties and powers shall be performed by and rest in the
Company's Vice President of Human Resources (or persons designated by such Vice
President). Except as otherwise provided under the Plan, the Administrator
shall:

         (1)      determine the rights and benefits of individuals and other
                  persons under the Plan;

         (2)      interpret, construe, and apply the provisions of the Plan;

         (3)      process and direct the payment of Plan benefits;

         (4)      adopt such forms as it deems appropriate or desirable to
                  administer the Plan and pay benefits thereunder; and

         (5)      adopt such rules and procedures as it deems appropriate or
                  desirable to administer the Plan.

         (b) Committee. The Committee shall exercise such powers as are
allocated to it under the Plan and shall be empowered to direct other persons as
to Plan administration, and its directions shall be followed to the extent
consistent with the powers delegated to the Committee and not otherwise contrary
to the provisions of the Plan.

         (c) Indemnity. No member of the Committee or person acting on behalf of
the Administrator shall be subject to any liability with respect to the
performance of his or her duties under the Plan or a related document unless he
or she acts fraudulently or in bad faith. The

                                      -17-
<PAGE>   19

Company shall indemnify and hold harmless the members of the Committee and the
Company's officers and employees, and the officers and employees of another
Group member, from any liability with respect to the performance of their duties
under the Plan, unless such duties were performed fraudulently or in bad faith.
Such indemnification shall cover any and all reasonable attorneys' fees and
expenses, judgments, fines and amounts paid in settlement, but only to the
extent such amounts are (i) actually and reasonably incurred, (ii) not otherwise
paid or reimbursable under an applicable employer paid insurance policy, and
(iii) not duplicative of other payments made or reimbursements due by the
Company or its affiliates under other indemnity agreements.

         SECTION 10. EFFECT OF KEESA. If a Participant has entered into a KEESA
and such Participant incurs a Covered Termination, then as or with respect to
that Participant:

         (i)      notwithstanding the provisions of Section 6, the scope or
                  duration (or both) of such Participant's covenants under
                  Section 6 shall be no greater or longer than similar covenants
                  provided for in such Participant's KEESA and, to the extent
                  there are no such similar covenants in such Participant's
                  KEESA, then Section 6 shall be void and of no force and
                  effect; and

         (ii)     in the case of any conflict between the terms and provisions
                  of this Plan and the terms and provisions of such
                  Participant's KEESA, the terms of such Participant's KEESA
                  shall control to the extent more beneficial to such
                  Participant, and the obligations of the Company under such
                  KEESA shall be in addition to any of its obligations under the
                  Plan.

         SECTION 11. AMENDMENT OR TERMINATION. (a) General. This Plan may be
terminated or amended, in whole or in part, at any time by written resolution of
the Board of Directors of the Company. Any such action may apply to the Plan as
a whole, or any individual Participant or group of Participants. Except as
provided in Section 11(b) and (c), any such action may reduce or eliminate
(retroactively or prospectively, or both) any benefits under the Plan that
otherwise would be payable but for such action.

         (b) Limitation on Power to Amend or Terminate. (1) Vested Participants.
As to any Participant who has earned a non-forfeitable Retirement Benefit
(determined without regard to Section 6) before the date the Plan is amended or
terminated (or, if later, before the date such action is effective), no such
amendment or termination shall (without the specific written consent of the
Participant):

         (i)      reduce the Retirement Benefit earned by the Participant;

         (ii)     reduce the amount of Plan benefits then being paid to a
                  Participant or change the form in which such benefits are
                  being paid; or

         (iv)     terminate, amend, or otherwise change the liability of the
                  Company, Employer Company, or other person to pay or provide
                  for the payment of Retirement Benefits protected under clauses
                  (i) and (ii) immediately preceding.

                                      -18-
<PAGE>   20

                  (2) Beneficiaries. As to any former Participant who has died
before the date the Plan is amended or terminated (or, if later, before the date
such action is effective), no such amendment or termination shall (without the
specific written consent of such Participant's Beneficiary):

         (i)      reduce the amount of Plan benefits to which such Beneficiary
                  is entitled or change the form in which benefits are payable;
                  or

         (ii)     terminate, amend, or otherwise change the liability of the
                  Company, Employer Company, or other person to pay or provide
                  for the payment of benefits protected under clause (i)
                  immediately preceding.

         (c) Change in Control. In addition to the limitations described in
Section 11(b), upon a Change in Control for which a Participant's KEESA becomes
operative and under which a Covered Termination has or may occur, then without
the specific written consent of the Participant (or Beneficiary in the event of
the Participant's death), the Plan as in existence immediately prior to the
Change in Control may not be (directly or indirectly) terminated, amended, or
otherwise changed in any respect during the three year period beginning with the
date of the Change in Control, but only with respect to such individual. The
prohibition herein described shall apply to any action which affects or is
intended to affect the terms and provisions of the Plan as then in effect during
such three year period, regardless of when made or effective.

         (d) Continuation of Plan Provisions. To the extent that any Plan
benefits, and rights and obligations allocable thereto, are protected under
Section 11(b) and (c), then as to the persons described in Section 11(b) and (c)
the Plan shall continue in force and effect, as if no such amendment or
termination had occurred, until such benefits are fully paid or fully provided
for to such persons.

         SECTION 12. CLAIMS. (a) Filing Claims. A Participant or Beneficiary (or
a person who in good faith believes he or she is a Participant  or  Beneficiary,
i.e., a  "claimant")  who believes he or she has been  wrongly  denied  benefits
under the Plan may file a written  claim for  benefits  with the  Administrator.
Although no particular form of written claim is required, no such claim shall be
considered  unless  it  provides  a  reasonably  coherent   explanation  of  the
claimant's position.

         (b) Decision on Claim. The Administrator shall in writing approve or
deny the claim within sixty (60) days of receipt, provided that such sixty (60)
day period may be extended for reasonable cause by notifying the claimant. If
the claim is denied, in whole or in part, the Administrator shall provide notice
in writing to the claimant, setting forth the following:

         (1)      the specific reason or reasons for the denial;

         (2)      a specific reference to the pertinent Plan provisions on which
                  the denial is based;

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

         (4)      the steps to be taken if the claimant wishes to appeal the
                  decision to the Committee.

                                      -19-
<PAGE>   21

         (c) Appeal of Denied Claim. (1) Filing Appeals. A claimant whose claim
has been denied in whole or in part may appeal such denial to the Committee by
filing a written appeal with the Administrator within sixty (60) days of the
date of the denial. A decision of the Administrator which is not appealed within
the time herein provided shall be final and conclusive as to any matter which
was presented to the Administrator.

                  (2) Rights on Appeal. A claimant (or a claimant's duly
authorized representative) who appeals the Administrator's decision shall, for
the purpose of preparing such appeal, have the right to review any pertinent
Plan documents, and submit issues and comments in writing to the Committee.

         (d) Decision by Appeals Committee. The Committee shall make a final and
full review of any properly appealed decision of the Administrator within sixty
(60) days after receipt of the appeal, provided that such period may be extended
for reasonable cause by notifying the claimant. The Committee's decision shall
be in writing and shall include specific reasons for its decisions and specific
references to the pertinent Plan provisions on which its decision is based.

         SECTION 13. MISCELLANEOUS. (a) Employer's Rights. The right of a Group
member to discipline or discharge employees or to exercise rights related to the
tenure of employment shall not be adversely affected in any manner by reason of
the existence of the Plan or any action hereunder.

         (b) Interpretation. Section and subsection headings are for convenient
reference only and shall not be deemed to be part of the substance of this
instrument or in any way to enlarge or limit the contents of any Section or
subsection. Masculine gender shall include the feminine, and vice versa, and
singular shall include the plural, and vice versa, unless the context clearly
requires otherwise.

         (c) Withholding of Taxes. All benefits earned under the Plan or the
payment of such benefits, as the case may be, shall be subject to withholding
for federal, state, local and other taxes as required by law. If and to the
extent any such withholding is required before such benefits are paid to the
Participant or Beneficiary, such withholdings shall be made from amounts
otherwise payable to such person by a Group member (e.g., salary). If no such
other amounts are available to satisfy such withholdings, and to the extent the
Group member pays such withholdings, then notwithstanding the provision of
Section 5(g) the withholdings so paid by the Group member (with reasonable
interest thereon as determined by the Administrator) may be offset against
benefits otherwise payable under the Plan.

         (d) Computational Errors. In the event mathematical, accounting,
actuarial or other errors are made in administration of the Plan due to mistakes
of facts, the Administrator may make equitable adjustments, which may be
retroactive, to correct such errors. Such adjustments shall be conclusive and
binding on all Participants and Beneficiaries.

         (e) Choice of Law. To the extent not preempted by ERISA or any other
federal statute, the construction and interpretation of the Plan shall be
governed by the laws of the State of Minnesota.

                                      -20-
<PAGE>   22

         (f) Savings Clause. Should any valid federal or state law or final
determination of any agency or court of competent jurisdiction affect any
provision of this Plan, the Plan provisions not affected by such determination
shall continue in full force and effect.

         (g) Change in Control. A Participant for whom a KEESA becomes operative
due to a Change in Control, and regardless of whether such Participant incurs a
Covered Termination, shall be entitled to adjudicate any dispute regarding his
or her benefits or rights and entitlements under the Plan, after compliance to
the extent necessary with the claim procedures under Section 12, in the forums
and venues as provided in Section 22 of the KEESA, and shall be entitled to
payment or reimbursement of costs and expenses related to such adjudication as
provided in Section 15 of the KEESA.

         (h) Application of Amendment. This amended and restated Plan document
applies with respect to individuals who are Participants on or after August 23,
2000.

                              --------------------

         The undersigned, by the authority of the Board of Directors of Pentair,
Inc., does hereby approve the form and content of this amended and restated Plan
document.

Dated:
      ------------------------------   -----------------------------------------
                                       Louis L. Ainsworth
                                       Senior Vice President and General Counsel
                                       of Pentair, Inc.

         The undersigned, by the authority of the Board of Directors of Pentair,
Inc., does hereby execute the foregoing document for and on behalf of Pentair,
Inc. effective as of August 23, 2000.

                                       PENTAIR, INC.

Dated:                                 By:
      ------------------------------      --------------------------------------
                                          Its:
                                              ----------------------------------

                                      -21-
<PAGE>   23

                                   APPENDIX A

         ARTICLE 1. GENERAL. The supplemental retirement benefit, and benefits
related thereto, described in this Appendix A are in addition to the benefits
payable under the Plan apart from this Appendix A. Except as provided in this
Appendix A or as necessary and appropriate to implement its provisions, all Plan
provisions apart from this Appendix A shall apply to the benefits described
herein (e.g., determination of a Beneficiary and the amount or portion payable
to such Beneficiary; the covenants described in Section 6).

         ARTICLE 2. PARTICIPANTS AND APPENDIX A BENEFITS. (a) General. The
Participants who may be entitled to the supplemental retirement benefit
described in this Appendix A and the amount of such benefit are as described
below.

<TABLE>
<CAPTION>
         Name of Participant                    Supplemental Retirement Benefit
         -------------------                    -------------------------------
<S>                                         <C>
         Richard J. Cathcart                $803.00 per month for each Year of Service
         G. Robert Gey                      $103.00 per month for each Year of Service
         Delton D. Nickel                   $256.00 per month for each Year of Service
         James A. White                     $100.00 per month for each Year of Service
</TABLE>

         (b) Year of Service. (1) General. For purposes of applying the benefit
formula described immediately above, a Year of Service means a calendar year
ending December 31, beginning with the calendar year ending December 31, 1999
and each anniversary thereof, for which the individual completes 1,000 Hours of
Service as an Eligible Employee. For this purpose, an individual who becomes
Disabled shall be considered to have completed 1,000 Hours of Service as of each
such December 31 during the Disability period, and an individual who has a
Termination of Employment as an Eligible Employee due to death shall be
considered to have completed 1,000 Hours of Service for the calendar year of
death.

                  (2) Service Upon a Covered Termination. If a Participant,
described in Article 2(a) immediately preceding, has entered into a KEESA and
such Participant incurs a Covered Termination, the supplemental retirement
benefit described in this Appendix A as to such Participant shall be no less
than the amount determined as if the Participant completed a Year of Service for
each calendar year after 1999 and ending with, but including, the calendar year
in which he attains or would attain age sixty-two (62).

         (c) Non-Forfeitable Interest. (1) General. The supplemental retirement
benefit described in this Appendix A shall be forfeited if the Participant has a
Termination of Employment or otherwise ceases to be an Eligible Employee before
attaining age sixty (60), regardless of the Participant's non-forfeitable rights
to other benefits under the Plan.

                  (2) Exceptions. A Participant shall be considered to have
attained age sixty (60) for purposes of applying paragraph (1) immediately
preceding, if he has a Termination of Employment by reason of an event or
circumstance by which he would be deemed to have completed the service necessary
to have a non-forfeitable interest in his Retirement Benefit (e.g.,

                                       i
<PAGE>   24

death in service as an Eligible Employee) determined without regard to the
forfeiture provisions of Section 6(b) unless such section has been actually
enforced as to such Participant.

         (d) Supplemental Retirement Benefit Described. The supplemental
retirement benefit described in this Appendix A is a monthly benefit, commencing
as of the Benefit Commencement Date and payable for a term certain of one
hundred eighty (180) consecutive months. Assuming the Participant is otherwise
entitled to receive such benefit, the commencement date and form (i.e., the
Normal Form of Benefit or the Joint and Survivor Annuity and related actuarial
factors by which the Normal Form of Benefit is converted to the Joint and
Survivor Annuity) in which such supplemental retirement benefit is paid shall be
the same as the Participant's Retirement Benefit apart from this Appendix A, and
all relevant elections and revocations related to such Retirement Benefits shall
apply to the supplemental retirement benefit described herein. To account for
the fact this Appendix A supplemental benefit is already expressed as a one
hundred eighty (180) month term certain annuity whereas the Retirement Benefit
apart from this Appendix A payable in the Normal Form of Benefit is derived
under a formula which starts with the Pension Amount, the amount of such
supplemental monthly retirement benefit shall be adjusted if the Participant
survives to the Benefit Commencement Date by the appropriate factor set forth in
Table 1 to reflect the period, if any, beginning on the first day of the
calendar month in which the Termination of Employment occurred and ending on the
Benefit Commencement Date.

         (e) Death Before Benefit Commencement Date. If a Participant described
in this Appendix A dies before his Benefit Commencement Date and at the time, or
as a result, of his death such Participant had a nonforfeitable interest in the
supplemental retirement benefit described herein (determined without regard to
the forfeiture provisions of Section 6(b) unless such section has been actually
enforced as to such Participant), a death benefit shall be paid to such
Participant's Beneficiary in addition to the death benefit payable under Section
4 with respect to such Participant. The commencement date and form of such death
benefit shall be the same as the death benefit payable under Section 4, and the
amount of the death benefit provided by this Appendix A shall be the
supplemental retirement benefit earned hereunder as of such Participant's death,
adjusted in a manner consistent with Section 4 to account for the fact such
supplemental retirement benefit is already expressed as a one hundred eighty
(180) month term certain annuity.

                                       ii
<PAGE>   25

                                   SCHEDULE 1

<TABLE>
<CAPTION>

         NAME OF PARTICIPANT                  BENEFIT SERVICE DATE                    PARTICIPATION DATE
         -------------------                  --------------------                    ------------------
<S>                                           <C>                                     <C>
         Cathcart, Richard                         03/06/1995                             01/01/1999
         Gey, Bob                                  08/01/1992                             01/01/1999
         White, James                              12/01/1991                             01/01/1999
         Fernandez, Jorge                          09/01/1997                             01/01/1999
         Schroepfer, Mark                          02/01/1996                             01/01/1999
         Nickel, Del                               10/01/1996                             01/01/1999
         Ainsworth, Louis                          07/01/1997                             01/01/1999
         Danko, George                             10/13/1997                             01/01/1999
         Bentson, Steve                            11/01/1996                             01/01/1999
         Knutson, Deb                              09/01/1994                             01/01/1999
         Hogan, Randy                              03/16/1998                             01/01/1999
         Durant, Karen                             09/01/1997                             01/01/1999
         Schrock, Michael                          01/01/1999                             01/01/1999
         Harrison, David D.                        02/14/1997                             02/14/2000

</TABLE>

                                                 Effective as of August 23, 2000

<PAGE>   26

                                   SCHEDULE 2

                              Winslow H. Buxton

                              Joseph R. Collins

                              Nevin J. Craig

                              Fred C. Lavender

                              Roy T. Rueb

<PAGE>   27

                                   SCHEDULE 3

                                 ITEMS INCLUDED

Base salary or wages, including such salary or wages deferred at the election of
an individual under the Pentair, Inc. Non-Qualified Deferred Compensation Plan

401(k) plan before-tax and after-tax employee contributions

Section 125 plan (flexible benefit plan) pre-tax employee contributions

Pentair, Inc. Employee Stock Purchase and Bonus Plan employer bonus
contributions

Pentair, Inc. Management Incentive Plan bonus, including such bonus deferred at
the election of an individual under the Pentair, Inc. Non-Qualified Deferred
Compensation Plan

Holiday pay

Sick leave pay

Bereavement pay

Jury duty pay

Military pay

Gain-sharing payments

Profit-sharing payments

Short-term disability benefits

Perquisites

                                 ITEMS EXCLUDED

Cash payments made and property or rights in property other than cash granted
under or pursuant to the Pentair Omnibus Stock Incentive Plan

Special awards under the Pentair, Inc. Management Incentive Plan

Severance pay

Moving expense reimbursements

Employee business expense reimbursements

Tuition reimbursement

Adoption assistance payments

Computer hardware and software purchase reimbursements

Special cash awards

Foreign duty pay enhancements

Except as expressly provided in the column immediately to the left, amounts
contributed to (e.g., deferred salary) or received under or pursuant to
non-qualified deferred compensation arrangements including, but not limited to,
the Pentair, Inc. Non-Qualified Deferred Compensation Plan

Except as expressly provided in the column immediately to the left, all
contributions (other than after-tax employee contributions) to and all benefits
received under a tax-qualified plan

                                                 Effective as of August 23, 2000

<PAGE>   28

                                     TABLE 1

<PAGE>   29

                                     TABLE 2

             CONVERSION FACTORS FROM 180 MONTH TERM CERTAIN ANNUITY
                   TO JOINT AND 100% SPOUSAL SURVIVOR ANNUITY

In applying this Table 2, Participant and Spouse ages shall be based upon
attained age in whole years as of the Benefit Commencement Date.

<PAGE>   30

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                              <C>
1.       NAME OF PLAN.............................................................................................1

2.       GENERAL DEFINITIONS......................................................................................1

3.       PARTICIPATION, VESTING AND BENEFIT SERVICE, AND RULES GOVERNING THE CREDITING
         OF SERVICE, DISABILITY AND THE DETERMINATION OF COMPENSATION AND FINAL
         AVERAGE COMPENSATION.....................................................................................5

         (a)      Participation...................................................................................5
         (b)      Vesting.........................................................................................6
         (c)      Benefit Service.................................................................................6
         (d)      Service Credits.................................................................................7
         (e)      Disability......................................................................................8
         (f)      Compensation...................................................................................10

4.       PAYMENTS IN THE EVENT OF DEATH BEFORE THE BENEFIT COMMENCEMENT DATE.....................................10

         (a)      General........................................................................................10
         (b)      Vested Participant.............................................................................10
         (c)      Amount and Commencement of Benefit.............................................................11
         (d)      Beneficiary....................................................................................11

5.       PAYMENT OF RETIREMENT BENEFITS..........................................................................11

         (a)      Application....................................................................................11
         (b)      Benefit Commencement Date......................................................................11
         (c)      Form of Retirement Benefit.....................................................................12
         (d)      Re-Employment after Commencement of Benefits...................................................12
         (e)      Normal Form of Benefit and Death Before End of 180 Month Period................................13
         (f)      Beneficiary....................................................................................13
         (g)      Non-Alienation.................................................................................14
         (h)      Miscellaneous..................................................................................14

6.       CONFIDENTIALITY, COVENANTS NOT TO COMPETE, AND NON-SOLICITATION.........................................15

         (a)      General........................................................................................15
         (b)      Forfeiture and Other Remedies..................................................................16

7.       FUNDING AND PAYMENT OF BENEFITS.........................................................................16

         (a)      General........................................................................................16
         (b)      Employer Company...............................................................................16
         (c)      Company Assumption of Liability................................................................17
         (d)      Participation by Other Group Members...........................................................17

8.       DEFAULT.................................................................................................17
</TABLE>
<PAGE>   31
<TABLE>
<S>                                                                                                             <C>
9.       ADMINISTRATION OF THE PLAN..............................................................................18

         (a)      General........................................................................................18
         (b)      Committee......................................................................................18
         (c)      Indemnity......................................................................................18

10.      EFFECT OF KEESA.........................................................................................19

11.      AMENDMENT OR TERMINATION................................................................................19

         (a)      General........................................................................................19
         (b)      Limitation on Power to Amend or Terminate......................................................19
         (c)      Change in Control..............................................................................20
         (d)      Continuation of Plan Provisions................................................................20

12.      CLAIMS..................................................................................................20

         (a)      Filing Claims..................................................................................20
         (b)      Decision on Claim..............................................................................20
         (c)      Appeal of Denied Claim.........................................................................20
         (d)      Decision by Appeals Committee..................................................................21

13.      MISCELLANEOUS...........................................................................................21

         (a)      Employer's Rights..............................................................................21
         (b)      Interpretation.................................................................................21
         (c)      Withholding of Taxes...........................................................................21
         (d)      Computational Errors...........................................................................21
         (e)      Choice of Law..................................................................................21
         (f)      Savings Clause.................................................................................21
         (g)      Change in Control..............................................................................22
         (h)      Application of Amendment.......................................................................22
</TABLE>

APPENDIX A

SCHEDULE 1

SCHEDULE 2

SCHEDULE 3

TABLE 1

TABLE 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]