Document:

ECOLAB

ECOLAB

MIRROR

SAVINGS PLAN

 

Fifth

Declaration of Amendment

 

Pursuant to Section 1.3 of the Ecolab Mirror Savings

Plan (“Plan”) and Section 5.1 of the Ecolab Inc. Administrative Document for

Non-Qualified Benefit Plans which is incorporated into the Plan by reference

(“Administrative Document”), the Company amends the Plan as set forth

below.  Except as otherwise specifically

provided herein, the terms of this Amendment shall be effective on February 22,

2002:

 

1.             Effective as of January 1, 2001, Section 2.2(1) of the

Plan is hereby amended in its entirety to read as follows:

 

“(1) in an

Employer-sponsored plan which is governed by Sections 401(k), 132(f)(4) or 125

of the Code.”

 

2.             Effective as of March 1, 2002, the first sentence of

Section 3.2(2)(b) of the Plan is hereby amended by deleting the phrase

“one-year anniversary” therefrom and replacing it with the phrase “six-month

anniversary” therein.

 

3.             Section

4.2(2)(c) of the Plan is hereby amended by deleting the phrase “does not exceed

$5,000” therefrom and replacing it with the phrase “does not exceed $25,000”

therein.

 

4.             Effective

March 1, 2002, the second sentence of Section 5.1(1) of the Plan is hereby

amended in its entirety to read as follows:

 

“Subject to the provisions of Section 3.3(1)(c) and Subsection

(2) of this Section, an Executive who is credited with an Hour of Service on or

after March 1, 2002 shall be immediately 100% vested in all Matching

Contributions hereunder.

 

5.             Section

5.1(2) of the Plan is hereby amended in its entirety to read as follows:

 

“(2)  Forfeiture

Provision.

 

(a) 

Notwithstanding the provisions of Subsection (1) hereof, but subject to

the requirements of clause (b) of this Subsection, the Employers shall be

relieved of any obligation to pay or provide any future Mirror Savings Plan

Benefits under this Plan and shall be entitled to recover amounts already

distributed if, without the written consent of the Company, the Executive,

whether before or after termination with the Controlled Group (i) participates

in dishonesty, fraud, misrepresentation, embezzlement or deliberate injury or

attempted injury, in each case related to the Company or a Controlled Group

member, (ii) commits any unlawful or criminal activity of a serious nature,

(iii) commits any intentional and deliberate breach of a duty or duties that,

individually or in the aggregate, are material in relation to the Executive’s

overall duties or (iv) materially breaches any confidentiality or noncompete

agreement entered into with the Company or a Controlled Group member.  The Employers shall have the burden of

proving that one of the foregoing events have occurred.  Notwithstanding the foregoing, the

provisions of this Subsection

 

1

 

2(a)  shall not apply to an Executive’s

Minimum Benefit or the portion of the Executive’s Account which is attributable

to his Executive Deferrals.

 

(b) 

Notwithstanding the foregoing, an Executive shall not forfeit any

portion of his Mirror Savings Plan Benefits under clause (a) of this Subsection

unless (i) the Executive receives reasonable notice in writing setting forth

the grounds for the forfeiture, (ii) if requested by the Executive, the

Executive (and/or the Executive’s counsel or other representative) is granted a

hearing before the full Board of Directors of the Company (the “Board”) and

(iii) a majority of the members of the full Board determine that the Executive

violated one or more of the provisions of clause (a) of this Subsection.”

 

6.             Article

VII of the Plan is hereby amended by adding the following new Sections to the

end thereof, to read as follows:

 

“SECTION 7.2. 

Limitation on Payments and Benefits.  Notwithstanding an provision of this Plan to the contrary, if any

amount or benefit to be paid or provided under this Plan or any other plan or

agreement between the Executive and a Controlled Group member would be an

“Excess Parachute Payment,” within the meaning of Section 280G of the Code, or

any successor provision thereto, but for the application of this sentence, then

the payments and benefits to be paid or provided under this Plan shall be

reduced to the minimum extent necessary (but in no event to less than zero) so

that no portion of any such payment or benefit, as so reduced, constitutes an

Excess Parachute Payment; provided, however, that the foregoing reduction shall

be made only if and to the extent that such reduction would result in an

increase in the aggregate payment and benefits to be provided to the Executive,

determined on an after-tax basis (taking into account the excise tax imposed

pursuant to Section 4999 of the Code, or any successor provision thereto, any

tax imposed by any comparable provision of state law, and any applicable

federal, state and local income taxes). 

If requested by the Executive or the Company, the determination of

whether any reduction in such payments or benefits to be provided under this

Plan or otherwise is required pursuant to the preceding sentence shall be made

by the Company’s independent accountants, at the expense of the Company, and

the determination of the Company’s independent accounts shall be final and

binding on all persons.   The fact that

the Executive’s right to payments or benefits may be reduced by reason of the

limitations contained in this Section 7.2 shall not of itself limit or

otherwise affect any other rights of the Executive pursuant to this Plan.  In the event that any payment or benefit

intended to be provided under this Plan or otherwise is required to be reduced

pursuant to this Section, the Executive (in his or her sole discretion) shall

be entitled to designate the payments and/or benefits to be so reduced in order

to give effect to this Section.  The

Company shall provide the Executive with all information reasonably requested

by the Executive to permit the Executive to make such designation.  In the event that the Executive fails to

make such designation with ten (10) business days of receiving such

information, the Company may effect such reduction in any manner it deems

appropriate.

 

SECTION 7.3.                        Establishment

of Trust Fund.

 

(1)           In General. 

The Plan is intended to be an unfunded, non-qualified retirement

plan.  However, the Company may enter

into a trust agreement with a trustee to establish a trust fund (the “Trust

Fund”) and to transfer assets thereto (or cause assets to be transferred

thereto), subject to the claims of the creditors of the Employers, pursuant to

which some or all of the Mirror Savings Plan Benefits shall be paid.  Payments from the Trust Fund shall discharge

the Employers’ obligation to make payments under the Plan to the extent that

Trust Fund assets are used to satisfy such obligations.

 

2

 

(2)  Upon a Change in Control.

 

(a)  Within

thirty (30) business days of the occurrence of a Change in Control, to the

extent it has not already done so, the Company shall be required to establish

an irrevocable Trust Fund for the purpose of paying Mirror Savings Plan

Benefits.  Except as described in the

following sentence, all contributions to the Trust Fund shall be irrevocable

and the Company shall not have the right to direct the trustee to return to the

Employers, or divert to others, any of the 

assets of the Trust Fund until after satisfaction of all liabilities to

all of the Executives and their Death Beneficiaries under the Plan.  Any assets deposited in the Trust Fund shall

be subject to the claims of the creditors of the Employers and any excess

assets remaining in the Trust Fund after satisfaction of all liabilities shall

revert to the Company.

 

(b)           In addition to the requirements

described in Subsection (a) above, the Trust Fund which becomes effective on

the Change in Control shall be subject to the following additional

requirements:

(i)            the trustee of the Trust Fund shall

be a third party corporate or institutional trustee;

 

(ii)           the Trust Fund shall satisfy the

requirements of a grantor trust under the Code; and

 

(iii)          the Trust Fund shall

automatically terminate (A) in the event that it is determined by a final

decision of the United States Department of Labor (or, if an appeal is taken therefrom, by a court of competent

jurisdiction) that by reason of the creation of, and a transfer of assets to,

the Trust, the Trust is considered “funded” for purposes of Title I of ERISA or

(B) in the event that it is determined by a final decision of the Internal

Revenue Service (or, if an appeal is taken therefrom, by a court of competent

jurisdiction) that (I) a transfer of assets to the Trust is considered a

transfer of property for purposes of Code Section 83 or any successor provision

thereto, or (II) pursuant to Code Section 451 or any successor provision

thereto, amounts are includable as compensation in the gross income of a Trust

Fund beneficiary in a taxable year that is prior to the taxable year or years

in which such amounts would otherwise be actually distributed or made available

to such beneficiary by the trustee. 

Upon such termination of the Trust, all of the assets in the Trust Fund

attributable to the accrued Mirror Savings Plan Benefits shall be immediately

distributed to the Executives and the remaining assets, if any, shall revert to

the Company.

 

(c)           Within five (5) days following establishment of the Trust Fund, the

Company shall transfer (or cause the Employers to transfer) to the trustee of

such Trust Fund an amount equal to all 100% of the Account balances of all of

the Executives under the Plan.

 

(d)  Following the funding of the Trust Fund pursuant to clause (b)

above, the Company shall cause to be deposited in the Trust Fund additional Executive Deferrals and

Matching Contributions, as such amounts are credited to the Accounts of the

Executives pursuant to Section 3.4 hereof.

 

(e)  Notwithstanding the foregoing, an Employer shall not be required

to make any contributions to the Trust Fund if the Employer is insolvent at the

time such contribution is required.

 

(f)  The Administrator shall

notify the trustee of the amount of Mirror Savings Plan Benefits to be paid to

the Executive (or his Death Beneficiary) from the Trust Fund and shall assist

the trustee in making distribution thereof in accordance with the terms of the

Plan.

 

3

 

(g)            Notwithstanding any provision of the

Plan or the Administrative Document to the contrary, the provisions of this

Section 7.3(2) hereof (i) may not be amended following a Change in Control and (ii) prior to a Change in

Control may only be amended (A) with the written consent of each of the

Executives or (B) if the effective date of such Amendment is at least two years

following the date the Executives were given written notice of the adoption of

such amendment.”

 

IN WITNESS WHEREOF, the Company has caused this instrument to be

executed by its duly authorized officer and its corporate seal affixed, this 27

day of February, 2002.

 

 

	

   

  	

   

  	

   

  	

  ECOLAB, INC.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

  /s/ Steven L. Fritze

  	

   

  
	

   

  	

   

  	

   

  	

  Title: Senior Vice President – 

  
	

   

  	

   

  	

   

  	

   

  	

  Finance and

  Controller

  	

   

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  (Seal)

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  Attest:

  	

  /s/ Kenneth A. Iverson

  	

   

  	

   

  	

   

  	

   

  	 

										

 

4ECOLAB

ECOLAB

MIRROR PENSION PLAN

 

Fourth Declaration of

Amendment

 

Pursuant to Section 1.3 of the Ecolab Mirror Pension

Plan (“Plan”) and Section 5.1 of the Ecolab Inc. Administrative Document for

Non-Qualified Benefit Plans which is incorporated into the Plan by reference

(“Administrative Document”), the Company amends the Plan as set forth

below.  Except as otherwise specifically

provided herein, the terms of this Amendment shall be effective on February 22,

2002:

 

1.             Section 3.3(2)(c) of the Plan is

hereby amended by deleting the phrase “does not exceed $5,000” therefrom and

replacing it with the phrase “does not exceed $25,000” therein.

 

2.             Section 5.1(1) of the Plan is

hereby amended by deleting the phrase “Except as provided in Subsection (2) of

this Section” therefrom and replacing it with the phrase “Except as provided in

Subsections (2) and (3) of this Section” therein.

 

3.             Section 5.1(2) of the Plan is

hereby amended in its entirety to read as follows:

 

“(2)  Forfeiture

Provision.

 

(a) 

Notwithstanding the provisions of Subsection (1) hereof, but subject to

the requirements of clause (b) of this Subsection, the Employers shall be

relieved of any obligation to pay or provide any future Mirror Pension Benefits

and Mirror Pre-Retirement Pension Benefits under this Plan and shall be

entitled to recover amounts already distributed if, without the written consent

of the Company, the Executive, whether before or after termination with the

Controlled Group (i) participates in dishonesty , fraud, misrepresentation, embezzlement

or deliberate injury or attempted injury, in each case related to the Company

or a Controlled Group member, (ii) commits any unlawful or criminal activity of

a serious nature, (iii) commits any intentional and deliberate breach of a duty

or duties that, individually or in the aggregate, are material in relation to

the Executive’s overall duties or (iv) materially breaches any confidentiality

or noncompete agreement entered into with the Company or a Controlled Group

member.  The Employers shall have the

burden of proving that one of the foregoing events have occurred.

 

(b) 

Notwithstanding the foregoing, an Executive shall not forfeit any

portion of his Mirror Pension Benefits or Mirror Pre-Retirement Pension

Benefits under clause (a) of this Subsection unless (i) the Executive receives

reasonable notice in writing setting forth the grounds for the forfeiture, (ii)

if requested by the Executive, the Executive (and/or the Executive’s counsel or

other representative) is granted a hearing before the full Board of Directors

of the Company (the “Board”) and (iii) a majority of the members of the full

Board determine that the Executive violated one or more of the provisions of

clause (a) of this Subsection.”

 

4.             Section 5.1 of the Plan is hereby

amended by adding the following new Subsection (3) to the end thereof, to read

as follows:

 

“(3)  Acceleration

of Vesting.  Notwithstanding the

provisions of Subsection (1) hereof, the Mirror Pension Benefits of the

Executives (a) who are employed by the Controlled Group on the date of a Change

in Control or (b) whose employment with the Company was terminated prior to a

Change in Control but the Executive reasonably demonstrates that the

termination occurred at the request of a third party who has taken steps reasonably

calculated to effect the Change in Control, shall become immediately 100%

vested upon the occurrence of such Change in Control.”

 

 

5.                                      Article VI of the

Plan is hereby amended by adding the following new Sections to the end thereof,

to read as follows:

 

SECTION 6.2.        Limitation on Payments and Benefits.  Notwithstanding any provision of this Plan

to the contrary, if any amount or benefit to be paid or provided under this

Plan or any other plan or agreement between the Executive and a Controlled Group

member would be an “Excess Parachute Payment,” within the meaning of Section

280G of the Code, or any successor provision thereto, but for the application

of this sentence, then the payments and benefits to be paid or provided under

this Plan shall be reduced to the minimum extent necessary (but in no event to

less than zero) so that no portion of any such payment or benefit, as so

reduced, constitutes an Excess Parachute Payment; provided, however, that the

foregoing reduction shall be made only if and to the extent that such reduction

would result in an increase in the aggregate payment and benefits to be

provided to the Executive, determined on an after-tax basis (taking into

account the excise tax imposed pursuant to Section 4999 of the Code, or any successor

provision thereto, any tax imposed by any comparable provision of state law,

and any applicable federal, state and local income taxes).  If requested by the Executive or the

Company, the determination of whether any reduction in such payments or benefits

to be provided under this Plan or otherwise is required pursuant to the

preceding sentence shall be made by the Company’s independent accountants, at

the expense of the Company, and the determination of the Company’s independent

accounts shall be final and binding on all persons.   The fact that the Executive’s right to payments or benefits may

be reduced by reason of the limitations contained in this Section 6.2 shall not

of itself limit or otherwise affect any other rights of the Executive pursuant

to this Plan.  In the event that any

payment or benefit intended to be provided under this Plan or otherwise is

required to be reduced pursuant to this Section, the Executive (in his or her

sole discretion) shall be entitled to designate the payments and/or benefits to

be so reduced in order to give effect to this Section.  The Company shall provide the Executive with

all information reasonably requested by the Executive to permit the Executive

to make such designation.  In the event

that the Executive fails to make such designation within ten (10) business days

of receiving such information, the Company may effect such reduction in any

manner it deems appropriate.

 

SECTION 6.3.        Establishment of Trust Fund.

 

(1)           In General. 

The Plan is intended to be an unfunded, non-qualified retirement

plan.  However, the Company may enter

into a trust agreement with a trustee to establish a trust fund (the “Trust

Fund”) and to transfer assets thereto (or cause assets to be transferred

thereto), subject to the claims of the creditors of the Employers, pursuant to

which some or all of the Mirror Pension Benefits and Mirror Pre-Retirement

Pension Benefits shall be paid. 

Payments from the Trust Fund shall discharge the Employers’ obligation

to make payments under the Plan to the extent that Trust Fund assets are used

to satisfy such obligations.

 

(2)  Upon a Change in Control.

 

(a)  Within thirty (30) business days of the occurrence of a Change in

Control, to the extent it has not already done so, the Company shall be required

to establish an irrevocable Trust Fund for the purpose of paying Mirror Pension

Benefits and Mirror Pre-Retirement Pension Benefits.  Except as described in the following sentence, all contributions

to the Trust Fund shall be irrevocable and the Company shall not have the right

to direct the trustee to return to the Employers, or divert to others, any of

the  assets of the Trust Fund until

after satisfaction of all liabilities to all of the Executives and their Death

Beneficiaries under the Plan.  Any assets

deposited in the Trust Fund shall be subject to the claims of the creditors of

the Employers and any excess assets remaining in the Trust Fund after

satisfaction of all liabilities shall revert to the Company.

 

2

 

(b)           In addition to the requirements described in Subsection

(a) above, the Trust Fund which becomes effectve on the Change in Control shall

be subject to the following additional requirements:

 

(i)            the Trustee of the Trust Fund shall be a third party

corporate or institutional trustee;

 

(ii)           the Trust Fund shall satisfy the requirements of a grantor

trust under the Code; and

 

(iii)          the Trust Fund shall automatically terminate (A) in the

event that it is determined by a final decision of the United States Department

of Labor (or, if an appeal is taken therefrom, by a court of competent

jurisdiction) that by reason of the creation of, and a transfer of assets to,

the Trust, the Trust is considered “funded” for purposes of Title I of ERISA or

(B) in the event that it is determined by a final decision of the Internal

Revenue Service (or, if an appeal is taken therefrom, by a court of competent

jurisdiction) that (I) a transfer of assets to the Trust is considered a

transfer of property for purposes of Code Section 83 or any successor provision

thereto, or (II) pursuant to Code Section 451 or any successor provision

thereto, amounts are includable as compensation in the gross income of a Trust

Fund beneficiary in a taxable year that is prior to the taxable year or years

in which such amounts would otherwise actually be distributed or made available

to such beneficiary by the trustee. 

Upon such a termination of the Trust, all of the assets in the Trust

Fund attributable to the accrued Mirror Pension Benefits and Mirror

Pre-Retirement Pension Benefits shall be immediately distributed to the

Executives and the remaining assets, if any, shall revert back to the Company.

 

(c)           Within five (5) days following establishment of the Trust

Fund, the Company shall transfer (or cause the Employers to transfer) to the

trustee of such Trust Fund an amount equal to the equivalent actuarial present

value of the Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits

which have been accrued as of the date of the Change in Control on behalf of

all of the Executives under the Plan (using the Actuarial Factors specified in

Exhibit A for this purpose).

 

(d)           In January of each year following a funding of the Trust

Fund pursuant to clause (b) above, the Company shall cause to be deposited in

the Trust Fund such additional amount (if any) by which the aggregate

equivalent actuarial present value (determined using the Actuarial Factors

specified in Exhibit A) of the sum of the Mirror Pension Benefits and Mirror

Pre-Retirement Pension Benefits for all Executives under the Plan as of

December 31 of the preceding year exceeds the fair market value of the assets

of the Trust Fund as of such date.

 

(e)           Notwithstanding the foregoing, an Employer shall not be

required to make any contributions to the Trust Fund if the Employer is

insolvent at the time such contribution is required.

 

(f)            The Administrator shall notify the trustee of the amount

of Mirror Pension Benefits and Mirror Pre-Retirement Pension Benefits to be

paid to or on behalf of the Executive from the Trust Fund and shall assist the

trustee in making distribution thereof in accordance with the terms of the

Plan.”

 

(g)           Notwithstanding any provision of the Plan or the

Administrative Document to the contrary, the provision of this Section 6.3(2)

hereof (i) may not be amended following a Change in Control and (ii) prior to a

Change in Control may only be amended (A) with the written consent of each of

the Executives or (B) if the effective date of such Amendment is at least two

years following the date the Executives were given written notice of the

adoption of such amendment.

 

3

 

IN WITNESS WHEREOF, the Company has caused this instrument to be

executed by its duly authorized officer and its corporate seal affixed, this 27

day of February, 2002.

 

	

   

  	

   

  	

   

  	

  ECOLAB, INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

  /s/ Steven L.

  Fritze

  	

   

  
	

   

  	

   

  	

   

  	

  Title:

  	

  Senior Vice

  President — Finance and Controller

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  (Seal)

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Attest: 

  	

  /s/ Kenneth A. Iverson

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

4

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