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                                                                    EXHIBIT 10.8

                              ITT INDUSTRIES, INC.
                  SPECIAL SENIOR EXECUTIVE SEVERANCE PAY PLAN
                   (AMENDED AND RESTATED AS OF JULY 13, 2004)

1. PURPOSE

      The purpose of this ITT Industries Special Senior Executive Severance Pay
Plan ("Plan") is to assist in occupational transition by providing Severance
Benefits, as defined herein, for employees covered by this Plan whose employment
is terminated under conditions set forth in this Plan.

2. COVERED EMPLOYEES

      Covered employees under this Plan ("Special Severance Executives") are
active full-time, regular salaried employees of ITT Industries, Inc., ("ITT
Industries") and of any subsidiary company ("ITT Industries Subsidiary")
(collectively or individually as the context requires "Company") (including
Special Severance Executives who are short term disabled as of a Potential
Acceleration Event within the meaning of the Company's short term disability
plans) (other than Special Severance Executives on periodic severance as of a
Potential Acceleration Event) who are in Band A or B or were in Band A or B at
any time within the two year period immediately preceding an Acceleration Event
and such other employees of the Company who shall be designated as covered
employees in Band A or B under the Plan by the Compensation and Personnel
Committee of ITT Industries' Board of Directors.

      "Bands A and B" shall have the meaning given such terms under the
executive classification system of the ITT Industries Human Resources Department
as in effect immediately preceding an Acceleration Event. After the occurrence
of an Acceleration Event, the terms "ITT Industries", "ITT Industries
Subsidiary" and "Company" as used herein shall also include, respectively and as
the context requires, any successor company to ITT Industries or any successor
company to any ITT Industries Subsidiary and any affiliate of any such successor
company.

3. DEFINITIONS

      An "Acceleration Event" shall occur if (i) a report on Schedule 13D shall
be filed with the Securities and Exchange Commission pursuant to Section 13(d)
of the Securities Exchange Act of 1934 (the "Act") disclosing that any person
(within the meaning of Section 13(d) of the Act), other than ITT Industries or a
subsidiary of ITT Industries or any employee benefit plan sponsored by ITT
Industries or a subsidiary of ITT Industries, is the beneficial owner directly
or indirectly of twenty percent (20%) or more of the outstanding Common Stock $1
par value, of ITT Industries (the "Stock"); (ii) any person (within the meaning
of Section 13(d) of the Act), other than ITT Industries or a subsidiary of ITT
Industries, or any employee benefit plan sponsored by ITT Industries or a
subsidiary of ITT Industries, shall purchase shares pursuant to a tender offer
or exchange offer to acquire any Stock of ITT Industries (or securities
convertible

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into Stock) for cash, securities or any other consideration, provided that after
consummation of the offer, the person in question is the beneficial owner (as
such term is defined in Rule 13d-3 under the Act), directly or indirectly, of
twenty percent (20%) or more of the outstanding Stock of ITT Industries
(calculated as provided in paragraph (d) of Rule 13d-3 under the Act in the case
of rights to acquire Stock); (iii) the stockholders of ITT Industries shall
approve (A) any consolidation, business combination or merger involving ITT
Industries, other than a consolidation, business combination or merger involving
ITT Industries in which holders of Stock immediately prior to the consolidation,
business combination or merger (x) hold fifty percent (50%) or more of the
combined voting power of ITT Industries (or the corporation resulting from the
merger or consolidation or the parent of such corporation) after the merger and
(y) have the same proportionate ownership of common stock of ITT Industries (or
the corporation resulting from the merger or consolidation or the parent of such
corporation), relative to other holders of Stock immediately prior to the
merger, business combination or consolidation, immediately after the merger as
immediately before, or (B) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all the
assets of ITT Industries, (iv) there shall have been a change in a majority of
the members of the Board of Directors of ITT Industries within a 12-month period
unless the election or nomination for election by ITT Industries' stockholders
of each new director during such 12-month period was approved by the vote of
two-thirds of the directors then still in office who (x) were directors at the
beginning of such 12-month period or (y) whose nomination for election or
election as directors was recommended or approved by a majority of the directors
who where directors at the beginning of such 12-month period or (v) any person
(within the meaning of Section 13(d) of the Act) (other than ITT Industries or
any subsidiary of ITT Industries or any employee benefit plan (or related trust)
sponsored by ITT Industries or a subsidiary of ITT Industries) becomes the
beneficial owner (as such term is defined in Rule 13d-3 under the Act) of twenty
percent (20%) or more of the Stock.

      "Cause" shall mean action by the Special Severance Executive involving
willful malfeasance or gross negligence or the Special Severance Executive's
failure to act involving material nonfeasance that would tend to have a
materially adverse effect on the Company. No act or omission on the part of the
Special Severance Executive shall be considered "willful" unless it is done or
omitted in bad faith or without reasonable belief that the action or omission
was in the best interests of the Company.

      "Good Reason" shall mean (i) without the Special Severance Executive's
express written consent and excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company or its affiliates promptly after receipt of notice
thereof given by the Special Severance Executive, (A) a reduction in the Special
Severance Executive's annual base salary (whether or not deferred) or annual
bonus (as measured by the highest bonus paid or awarded, whether or not
deferred, in respect of the three (3) calendar years preceding an Acceleration
Event) or any reduction in any material compensation or benefits arrangement,
(B) the assignment to the Special Severance Executive of any duties inconsistent
in any respect with the Special Severance Executive's position (including
status, offices, titles and reporting requirements), authority, duties or
responsibilities, or (C) any other action by the Company or its affiliates which
results in a diminution in such position, authority, duties or responsibilities;
(ii) without the Special Severance Executive's express written consent, the
Company's requiring the Special Severance Executive's work location to be

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other than within twenty-five (25) miles of the location where such Special
Severance Executive was principally working immediately prior to the
Acceleration Event; or (iii) any failure by the Company to obtain the express
written assumption of this Plan from any successor to the Company.

      "Potential Acceleration Event" shall mean any execution of an agreement,
the commencement of a tender offer or any other transaction or event that if
consummated would result in an Acceleration Event.

4. SEVERANCE BENEFITS UPON TERMINATION OF EMPLOYMENT

      If, a Special Severance Executive's employment with the Company is
terminated due to a Qualifying Termination, he or she shall receive the
severance benefits set forth in Section 5 hereof ("Severance Benefits"). For
purposes hereof, (i) a "Qualifying Termination" shall mean a termination of a
Special Severance Executive's employment with the Company either (x) by the
Company without Cause (A) within the two (2) year period commencing on the date
of the occurrence of an Acceleration Event or (B) prior to the occurrence of an
Acceleration Event and either (1) following the public announcement of the
transaction or event which ultimately results in such Acceleration Event or (2)
at the request of a party to, or participant in, the transaction or event which
ultimately results in an Acceleration Event; or (y) by a Special Severance
Executive for Good Reason within the two (2) year period commencing with the
date of the occurrence of an Acceleration Event and (ii) a determination by a
Special Severance Executive that he or she has "Good Reason" hereunder shall be
final and binding on the parties hereto absent a showing of bad faith on the
Special Severance Executive's part.

5. SEVERANCE BENEFITS

      Band A Benefits

      Severance Benefits for Special Severance Executives (i) in Band A at the
time of a Qualifying Termination or at any time during the two (2) year period
immediately preceding the Acceleration Event or (ii) designated as a covered
employee in Band A in accordance with Section 2 hereof:

       - ACCRUED RIGHTS - The Special Severance Executive's base salary through
the date of termination of employment, any annual bonus earned but unpaid as of
the date of termination for any previously completed fiscal year, reimbursement
for any unreimbursed business expenses properly incurred by the Special
Severance Executive in accordance with Company policy prior to the date of the
Special Severance Executive's termination of employment and such employee
benefits, if any, as to which the Special Severance Executive may be entitled
under the employee benefit plans of the Company, including without limitation,
the payment of any accrued or unused vacation under the Company's vacation
policy.

       - SEVERANCE PAY - The sum of (x) three (3) times the highest annual base
salary rate paid (whether or not deferred) to the Special Severance Executive at
any time during the three year period immediately preceding the Special
Severance Executive's termination of employment, and (y) three (3) times the
highest annual bonus paid or awarded (whether or not

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deferred) to the Special Severance Executive in respect of either (i) the three
(3) years preceding an Acceleration Event or (ii) the three (3) years preceding
the Special Severance Executive's termination of employment.

       - BENEFITS AND PERQUISITES

            > Continued health and life insurance benefits and perquisites
(including, without limitation, any Company-provided automobile and any tax or
financial advisory services) for a three (3) year period following the Special
Severance Executive's termination of employment at the same cost to the Special
Severance Executive, and at the same coverage levels, as provided to the Special
Severance Executive (and the Special Severance Executive's eligible dependents)
immediately prior to his or her termination of employment.

            > Payment of a lump sum amount ("Pension Lump Sum Amount") equal to
the difference between (i) the total lump sum value of the Special Severance
Executive's pension benefit under the ITT Industries Salaried Retirement Plan
and, as applicable, Excess Pension Plan IA, Excess Pension Plan IB and/or Excess
Pension Plan II of the Company or any successor plan; provided that the benefits
under such successor plan is no less favorable than the benefits under the plans
set forth herein (or corresponding pension arrangements outside the United
States) ("Pension Plans") as of the Special Severance Executive's termination of
employment and (ii) the total lump sum value of the Special Severance
Executive's pension benefit under the Pension Plans after crediting an
additional three (3) years of age and three (3) years of eligibility and benefit
service to the Special Severance Executive and applying the highest annual base
salary rate and highest bonus determined above under "Severance Pay" with
respect to each of the additional three (3) years of service so credited for
purposes of determining Final Average Compensation under the Pension Plans. The
above total lump sum values shall be determined in the manner provided in the
Excess Pension Plans of the Company for determination of lump sum benefits upon
the occurrence of an Acceleration Event, as defined in said Plans. This
provision shall apply to any Special Severance Executive having a pension
benefit under any of the Pension Plans as of the Special Severance Executive's
termination of employment. An example of the calculation of benefits set forth
in this paragraph is set forth on Schedule A.

            > Crediting of an additional three (3) years of age and three (3)
years of eligibility service for purposes of the Company's retiree health and
retiree life insurance benefits. This provision shall apply to any Special
Severance Executives covered under such benefits any time during the three (3)
year period immediately preceding the Special Severance Executive's termination
of employment.

            > Payment of a lump sum amount ("Savings Plan Lump Sum Amount")
equal to three (3) times the following amount: the highest annual base salary
rate determined above under "Severance Pay" times the highest percentage rate of
Company Contributions (not to exceed three and on-half percent (3 1/2%)) with
respect to the Special Severance Executive under the ITT Industries Investment
and Savings Plan for Salaried Employees and/or the ITT Industries Excess Savings
Plan (or corresponding savings plan arrangements outside the United States)
("Savings

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Plans") (including matching contributions and floor contributions) at any time
during the three (3) year period immediately preceding the Special Severance
Executive's termination of employment or the three (3) year period immediately
preceding the Acceleration Event. This provision shall apply to any Special
Severance Executive who is a member of any of the Savings Plans at any time
during such three (3) year period.

       - OUTPLACEMENT - Outplacement services for one (1) year.

      Band B Benefits

      Severance Benefits for Special Severance Executives (i) in Band B at the
time of a Qualifying Termination or at any time during the two (2) year period
immediately preceding the Acceleration Event or (ii) designated as a covered
employee in Band B in accordance with Section 2 hereof; provided, that a Special
Severance Executive who is in Band B at the time of a Qualifying Termination but
was in Band A anytime during the two (2) year period immediately preceding the
Acceleration Event shall be entitled to Severance Benefits as a Special
Severance Executive in Band A and shall not be entitled to the Severance
Benefits set forth below:

       - ACCRUED RIGHTS - The Special Severance Executive's base salary through
the date of termination of employment, any annual bonus earned but unpaid as of
the date of termination for any previously completed fiscal year, reimbursement
for any unreimbursed business expenses properly incurred by the Special
Severance Executive in accordance with Company policy prior to the date of the
Special Severance Executive's termination of employment and such employee
benefits, if any, as to which the Special Severance Executive may be entitled
under the employee benefit plans of the Company, including without limitation,
the payment of any accrued or unused vacation under the Company's vacation
policy.

       - SEVERANCE PAY - The sum of (x) two (2) times the highest annual base
salary rate paid (whether or not deferred) to the Special Severance Executive at
any time, during the three (3) year period immediately preceding the Special
Severance Executive's termination of employment, and (y) two (2) times the
highest annual bonus paid or awarded (whether or not deferred) to the Special
Severance Executive in respect of either (i) the three (3) years preceding an
Acceleration Event or (ii) the three (3) years preceding the Special Severance
Executive's termination of employment.

       - BENEFITS AND PERQUISITES

            > Continued health and life insurance benefits and perquisites
(including, without limitation, any Company provided automobile and any tax or
financial advisory services) for a two year period following the Special
Severance Executive's termination of employment at the same cost to the Special
Severance Executive, and at the same coverage levels, as provided to the Special
Severance Executive (and the Special Severance Executive's eligible dependents)
immediately prior to his or her termination of employment.

            > Payment of a lump sum amount ("Pension Lump Sum Amount") equal to
the difference between (i) the total lump sum value of the Special Severance
Executive's pension

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benefit under the ITT Industries Salaried Retirement Plan and, as applicable,
Excess Pension Plan IA, Excess Pension Plan IB and/or Excess Pension Plan II of
the Company or any successor plan; provided that the benefits under such
successor plan is no less favorable than the benefits under the plans set forth
herein (or corresponding pension arrangements outside the United States)
("Pension Plans") as of the Special Severance Executive's termination of
employment and (ii) the total lump sum value of the Special Severance
Executive's pension benefit under the Pension Plans after crediting an
additional two (2) years of age and two (2) years of eligibility and benefit
service to the Special Severance Executive and applying the highest annual base
salary rate and highest bonus determined above under "Severance Pay" with
respect to each of the additional two (2) years of service so credited for
purposes of determining Final Average Compensation under the Pension Plans. The
above total lump sum values shall be determined in the manner provided in the
Excess Pension Plans of the Company for determination of lump sum benefits upon
the occurrence of an Acceleration Event, as defined in said Plans. This
provision shall apply to any Special Severance Executive having a pension
benefit under any of the Pension Plans as of the Special Severance Executive's
termination of employment. An example of the calculation of benefits set forth
in this paragraph is set forth on Schedule A.

            > Crediting of an additional two (2) years of age and two (2) years
of eligibility service for purposes of the Company's retiree health and retiree
life insurance benefits. This provision shall apply to any Special Severance
Executives covered under such benefits any time during the three (3) year period
immediately preceding the Special Severance Executive's termination of
employment.

            > Payment of a lump sum amount ("Savings Plan Lump Sum Amount")
equal to two (2) times the following amount: the highest annual base salary rate
determined above under "Severance Pay" times the highest percentage rate of
Company Contributions (not to exceed three and one-half percent (3 1/2%)) with
respect to the Special Severance Executive under the ITT Industries Investment
and Savings Plan for Salaried Employees and/or the ITT Industries Excess Savings
Plan (or corresponding savings plan arrangements outside the United States)
("Savings Plans") (including matching contributions and floor contributions) at
any time during either the three (3) year period immediately preceding the
Special Severance Executive's termination of employment or the three (3) year
period immediately preceding the Acceleration Event. This provision shall apply
to any Special Severance Executive who is a member of any of the Savings Plans
at any time during such three (3) year period.

       - OUTPLACEMENT - Outplacement services for one year.

      General

      With respect to the provision of benefit and perquisites during the above
described respective three and two year periods, if, for any reason at any time
the Company is unable to treat the Special Severance Executive as being eligible
for ongoing participation in any Company employee benefit plans or perquisites
in existence immediately prior to the termination of employment of the Special
Severance Executive, and if, as a result thereof, the Special Severance
Executive does not receive a benefit or perquisite or receives a reduced benefit
or

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perquisite, the Company shall provide such benefits or perquisites by (i) direct
payment to the Special Severance Executive of the amounts the Special Severance
Executive would have received from such benefit plan or perquisite had the
Special Severance Executive continued to be eligible or (ii) at the Company's
option, making available equivalent benefits or perquisites from other sources.

6. FORM OF PAYMENT OF SEVERANCE PAY AND LUMP SUM PAYMENTS

      Severance Pay shall be paid in cash, in a non-discounted lump sum within
five (5) business days after the date the employment of the Special Severance
Executive terminates. The Pension Lump Sum Amount and the Savings Plan Lump Sum
Amount shall be paid in cash within thirty (30) calendar days after the date the
employment of the Special Severance Executive terminates.

7. TERMINATION OF EMPLOYMENT - OTHER

      The Severance Benefits shall only be payable upon a Special Severance
Executive's termination of employment due to a Qualifying Termination; provided,
that if, following the occurrence of an Acceleration Event, a Special Severance
Executive is terminated due to the Special Severance Executive's death or
disability (as defined in the long-term disability plan in which the Special
Severance Executive is entitled to participate (whether or not the Special
Severance Executive voluntarily participates in such plan)) and, at the time of
such termination, the Special Severance Executive had grounds to resign with
Good Reason, such termination of employment shall be deemed to be a Qualifying
Termination.

8. ADMINISTRATION OF PLAN

      This Plan shall be administered by ITT Industries, who shall have the
exclusive right to interpret this Plan, adopt any rules and regulations for
carrying out this Plan as may be appropriate and decide any and all matters
arising under this Plan, including but not limited to the right to determine
appeals. Subject to applicable Federal and state law, all interpretations and
decisions by ITT Industries shall be final, conclusive and binding on all
parties affected thereby.

      Notwithstanding the preceding paragraph, following an Acceleration Event,
any controversy or claim arising out of or relating to this Plan, or the breach
thereof, shall be settled by arbitration administered by the American
Arbitration Association under its Commercial Arbitration Rules and the entire
cost thereof shall be borne by the Company. The location of the arbitration
proceedings shall be reasonably acceptable to the Special Severance Executive.
Judgment on the award rendered by the arbitrator(s) may be entered in any court
having jurisdiction thereof. The Company shall pay all legal fees, costs of
litigation, prejudgment interest, and other expenses which are incurred in good
faith by the Special Severance Executive as a result of the Company's refusal to
provide any of the Severance Benefits to which the Special Severance Executive
becomes entitled under this Plan, or as a result of the Company's (or any third
party's) contesting the validity, enforceability, or interpretation of this
Plan, or as a result of any conflict between the Special Severance Executive and
the Company pertaining to this Plan. The Company shall pay such fees and
expenses from the general assets of the Company.

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9. TERMINATION OR AMENDMENT

      ITT Industries may terminate or amend this Plan ("Plan Change") at any
time except, that following the occurrence of (i) an Acceleration Event or (ii)
a Potential Acceleration Event, no Plan Change that would adversely affect any
Special Severance Executive may be made without the prior written consent of
such Special Severance Executive affected thereby; provided, however, that (ii)
above shall cease to apply if such Potential Acceleration Event does not result
in the occurrence of an Acceleration Event.

10. OFFSET

      Any Severance Benefits provided to a Special Severance Executive under
this Plan shall be offset by reducing (x) any Severance Pay hereunder by any
severance pay, salary continuation pay, termination pay or similar pay or
allowance and (y) any other Severance Benefits hereunder by corresponding
employee benefits, perquisites or outplacement services, which the Special
Severance Executive receives or is entitled to receive, (i) under the ITT
Industries, Inc. Senior Executive Severance Pay Plan; (ii) pursuant to any other
Company policy, practice, program or arrangement; (iii) pursuant to any Company
employment agreement or other agreement with the Company; or (iv) by virtue of
any law, custom or practice excluding, however, any unemployment compensation in
the United States, unless the Special Severance Executive voluntarily expressly
waives (which the Special Severance Executive shall have the exclusive right to
do) in writing any such respective entitlement.

11. EXCISE TAX

      In the event that it shall be determined that any payment or distribution
by the Company to or for the benefit of the Special Severance Executive (whether
paid or payable or distributed or distributable pursuant to the terms of this
Plan or otherwise, but determined without regard to any additional payments
required under this Section 11 such payments or distributions being referred to
herein as "Payments") would give rise to liability of the Special Severance
Executive for the excise tax imposed by Section 4999 of the Internal Revenue
Code, as amended (the "Code"), or that any interest or penalties are incurred by
the Special Severance Executive with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter collectively
referred to as the "Excise Tax"), then the Special Severance Executive shall be
entitled to receive an additional payment (the "Gross-Up Payment") in an amount
such that after payment by the Special Severance Executive of all Federal, state
and local taxes (including any interest or penalties imposed with respect to
such taxes), including without limitation, any income and employment taxes (and
any interest and penalties imposed with respect to such taxes) and Excise Tax
imposed upon the Gross-Up Payment, the Special Severance Executive retains an
amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.

      All determinations required to be made under this Section 11, including
whether and when a Gross-Up Payment is required and the amount of such Gross-Up
Payment and the assumptions to be utilized in arriving at such determination,
shall be made by a nationally recognized accounting firm mutually agreed to by
the Special Severance Executive and the Company (the "Accounting Firm") which
shall provide detailed supporting calculations both to

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the Company and the Special Severance Executive within ten (10) business days of
the receipt of notice from the Special Severance Executive that there has been a
Payment, or such earlier time as is requested by the Company; provided that for
purposes of determining the amount of any Gross-Up Payment, the Special
Severance Executive shall be deemed to pay federal income tax at the highest
marginal rates applicable to individuals in the calendar year in which any such
Gross-Up Payment is to be made and deemed to pay state and local income taxes at
the highest effective rates applicable to individuals in the state or locality
of the Special Severance Executive's residence or place of employment, whichever
is higher, in the calendar year in which any such Gross-Up Payment is to be
made. All fees and expenses of the Accounting Firm shall be borne solely by the
Company. Any Gross-Up Payment, as determined pursuant to this Section 11, shall
be paid by the Company to the Special Severance Executive when due. If the
Accounting Firm determines that no Excise Tax is payable by the Special
Severance Executive, it shall so indicate to the Special Severance Executive in
writing. Any determination by the Accounting Firm shall be binding upon the
Company and the Special Severance Executive. As a result of the uncertainty in
the application of Section 4999 of the Code, it is possible that the amount of
the Gross-Up Payment determined by the Accounting Firm to be due to (or on
behalf of) the Special Severance Executive was lower than the amount actually
due ("Underpayment"). In the event that the Company exhausts its remedies
pursuant to this Section 11 and the Special Severance Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Special Severance Executive.

      The Special Severance Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of any Gross-Up Payment. Such notification shall be given
as soon as practicable but no later than ten business days after Special
Severance Executive is informed in writing of such claim and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid. Special Severance Executive shall not pay such claim prior
to the expiration of the thirty day period following the date on which it gives
such notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due). If the Company notifies
Special Severance Executive in writing prior to the expiration of such period
that it desires to contest such claim, Special Severance Executive shall (i)
give the Company any information reasonably requested by the Company relating to
such claim, (ii) take such action in connection with contesting such claim as
the Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Company, (iii) cooperate with the Company
in good faith in order to effectively contest such claim and (iv) permit the
Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Special Severance Executive harmless,
on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 11, the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Special

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Severance Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Special Severance Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, further, that if the Company directs the
Special Severance Executive to pay such claim and sue for a refund, the Company
shall advance the amount of such payment to the Special Severance Executive, on
an interest-free basis, and shall indemnify and hold the Special Severance
Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
provided, further, that if the Special Severance Executive is required to extend
the statute of limitations to enable the Company to contest such claim, the
Special Severance Executive may limit this extension solely to such contested
amount. The Company's control of the contest shall be limited to issues with
respect to which a Gross-Up Payment would be payable hereunder and the Special
Severance Executive shall be entitled to settle or contest, as the case may be,
any other issue raised by the Internal Revenue Service or any other taxing
authority.

      If, after the receipt by the Special Severance Executive of an amount paid
or advanced by the Company pursuant to this Section 11, the Special Severance
Executive becomes entitled to receive any refund with respect to a Gross-Up
Payment, the Special Severance Executive shall (subject to the Company's
complying with the requirements of Section 11) promptly pay to the Company the
amount of such refund received (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Special
Severance Executive of an amount advanced by the Company pursuant to Section 11,
a determination is made that the Special Severance Executive shall not be
entitled to any refund with respect to such claim and the Company does not
notify the Special Severance Executive in writing of its intent to contest such
denial of refund prior to the expiration of thirty (30) days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of the Gross-Up Payment required to be paid.

      In the event the Gross-Up Payment shall fail to make the Special Severance
Executive whole on an after-tax basis, whether by reason of either (i) an
adjustment made by the Internal Revenue Service or state taxing authority or
(ii) because the Special Severance Executive's actual effective tax rate was
higher than the rate used by the Accounting Firm as determined pursuant to
Section 11 for the year in which the Gross-Up Payment was made, the Gross-Up
Payment shall be recalculated ("Recalculated Gross-Up Payment"), using the
Special Severance Executive's actual effective tax rate, once it is known for
the calendar year in which the Gross-Up Payment is made, and the Company shall
reimburse the Special Severance Executive for the full amount of any amount by
which the Recalculated Gross-Up Payment exceeds the Gross-Up Payment
("Additional Gross-Up Payment").

      The Gross-Up Payment and any Additional Gross-Up Payment shall be paid out
of the general assets of the Company.

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12. MISCELLANEOUS

      The Special Severance Executive shall not be entitled to any notice of
termination or pay in lieu thereof.

      Severance Benefits under this Plan are paid entirely by the Company from
its general assets.

      This Plan is not a contract of employment, does not guarantee the Special
Severance Executive employment for any specified period and does not limit the
right of the Company to terminate the employment of the Special Severance
Executive at any time.

      If a Special Severance Executive should die while any amount is still
payable to the Special Severance Executive hereunder had the Special Severance
Executive continued to live, all such amounts shall be paid in accordance with
this Plan to the Special Severance Executive's designated heirs or, in the
absence of such designation, to the Special Severance Executive's estate.

      The numbered section headings contained in this Plan are included solely
for convenience of reference and shall not in any way affect the meaning of any
provision of this Plan.

      If, for any reason, any one or more of the provisions or part of a
provision contained in this Plan shall be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Plan not
held so invalid, illegal or unenforceable, and each other provision or part of a
provision shall to the full extent consistent with law remain in full force and
effect.

      The Plan shall be governed by and construed in accordance with the laws of
the State of New York without regard to the conflicts of laws provisions
thereof.

      The Plan shall be binding on all successors and assigns of the ITT
Industries and a Special Severance Executive.

13. NOTICES

      Any notice and all other communication provided for in this Plan shall be
in writing and shall be deemed to have been duly given when delivered by hand or
overnight courier or three (3) days after it has been mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below, or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon receipt.

<PAGE>

                                                                              12

            If to the Company:

            ITT Industries, Inc.
            4 West Red Oak Lane
            White Plains, New York 10604
            Attention: General Counsel

            If to Special Severance Executive:

            To the most recent address of Special Severance Executive set forth
            in the personnel records of ITT Industries.

14. ADOPTION DATE

      This Plan was adopted by ITT Industries on March 10, 1997 ("Adoption
Date") and does not apply to any termination of employment which occurred or
which was communicated to the Special Severance Executive prior to the Adoption
Date.

<PAGE>

                  SPECIAL SENIOR EXECUTIVE SEVERANCE PAY PLAN

                    EXAMPLE OF POTENTIAL PENSION ENHANCEMENT

      BASIC INPUT DATA

<TABLE>
<S>                                      <C>
Date of Event                            12/31/2004

Employee Age                                     55

Employee Service                                 20

Current Salary Rate                         345,000

Estimated Social Security Benefit (Mo.)       1,400
</TABLE>

      HISTORICAL EARNINGS

<TABLE>
<CAPTION>
                     BASE        EXECUTIVE
YEAR               EARNINGS        BONUS
<S>                <C>           <C>
1998                260,417        84,000
1999                273,438       106,000
2000                286,771       125,000
2001                298,167       165,000
2002                312,500       200,000
2003                327,500       185,000
2004                342,500       189,000
</TABLE>

<TABLE>
IMPLIED EARNINGS
<S>                 <C>           <C>
    Year l          345,000       200,000
    Year 2          345,000       200,000
    Year 3          345,000       200,000
</TABLE>

      CALCULATION OF PENSION BENEFIT

<TABLE>
<CAPTION>
                                             ACTUAL        ENHANCED      IMPROVEMENT
<S>                                        <C>            <C>           <C>
Final Average Pay                          486,287.50     538,800.00
Age                                             55.00          58.00
Service                                         20.00          23.00

Gross Monthly Pension                       16,209.58      20,654.00        4,444.42
Less: Social Security Offset                  (350.00)       (402.50)         (52.50)
Net Monthly Pension @ Age 65                15,859.58      20,251.50        4,391.92
Early Retirement Reduction Factor               75.00%         90.00%

Net Pension Payable after age 62            11,807.19      18,186.10        6,378.91
Net Pension Payable to age 62               12,157.19      18,588.60        6,431.41

Lump Sum Value of Benefit from Enhanced
Severance Pay Plan                                                      1,406,120.12
</TABLE>

Note: In addition to the lump sum payment shown, any portion of the actual
benefit that is payable under the Excess Pension Plan would be paid in a lump
sum<PAGE>

                                                                    EXHIBIT 10.9

                   ITT INDUSTRIES 1996 RESTRICTED STOCK PLAN
                           FOR NON-EMPLOYEE DIRECTORS
                   (AMENDED AND RESTATED AS OF JULY 13, 2004)

                ARTICLE I -- PLAN ADMINISTRATION AND ELIGIBILITY

1.1 PURPOSE

      The purpose of the ITT Industries 1996 Restricted Stock Plan for
Non-Employee Directors (the "Plan") is to attract and retain persons of ability
as Directors of ITT Industries, Inc. (the "Company") and to provide them with a
closer identity with the interests of the Company's stockholders by paying the
Annual Retainer in common stock of the Company.

1.2 ADMINISTRATION

      The Plan shall be administered by the Compensation and Personnel Committee
of the Board of Directors (hereinafter referred to as the "Committee"). The
Committee shall have the responsibility of interpreting the Plan and
establishing and amending such rules and regulations necessary or appropriate
for the administration of the Plan. All interpretations of the Plan or any
Restricted Stock awards issued under it shall be final and binding upon all
persons having an interest in the Plan. No member of the Committee shall be
liable for any action or determination taken or made in good faith with respect
to this Plan or any award granted hereunder.

1.3 ELIGIBILITY

      Directors of the Company who are not employees of the Company or any of
its subsidiaries shall be eligible to participate in the Plan.

1.4 STOCK SUBJECT TO THE PLAN

      (a) The maximum number of shares which may be granted under the Plan shall
be 100,000 shares of common stock of the Company (the "Stock").

      (b) If any Restricted Stock is forfeited by a Director in accordance with
the provisions of Section 2.2(e), such shares of Restricted Stock shall be
restored to the total number of shares available for grant pursuant to the Plan.

      (c) Upon the grant of a Restricted Stock award the Company may distribute
newly issued shares or treasury shares.

                         ARTICLE II -- RESTRICTED STOCK

2.1 RESTRICTED STOCK AWARDS

      Restricted Stock awards shall be made automatically on the date of the
Annual Meeting of Stockholders, to each Director elected at the meeting or
continuing in office following the meeting. The award shall equal the number of
whole shares arrived at by dividing the Annual

<PAGE>

Retainer that is in effect for the calendar year within which the award date
falls, by the Fair Market Value of the Company's common stock. Fractional shares
shall be paid in cash.

      (a) "Annual Retainer" shall mean the amount that is payable to a Director
for service on the Board of Directors during the calendar year. Annual Retainer
shall not include fees paid for attendance at any Board or Committee meeting.

      (b) "Fair Market Value" shall mean the average of the high and low prices
per share of the Company's common stock on the date of the Annual Meeting, as
reported by the New York Stock Exchange Composite Tape.

2.2 TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS

      (a) Written Agreement -- Each Restricted Stock award shall be evidenced by
a written agreement delivered to the Director in such form as the Committee
shall prescribe. Such agreement shall include the restrictions described under
Section 2.2(c) and any other restrictions and conditions on the shares as the
Committee deems appropriate.

      (b) Shares held in Escrow -- The Restricted Stock subject to such award
shall be registered in the name of the Director and held in escrow by the
Committee until the restrictions on such shares lapse as described below.

      (c) Restrictions -- Restricted Stock granted to a Director may not be
sold, assigned, transferred, pledged or otherwise disposed of, except by will or
the laws of descent and distribution, prior to the earliest of the following
dates:

            (1) The fifth anniversary of the date of grant, unless the Director
      shall have elected no later than October 31 of the calendar year
      immediately prior to the fifth anniversary of the date of such grant to
      extend the period of restriction with respect to such grant. The extension
      of such period of restriction shall be to such time as shall be either (w)
      the tenth anniversary of such date of grant or (x) six months and one day
      after such time as the restrictions set forth in Section 2.2(c) other than
      this clause (1) shall otherwise lapse; provided, however, that if the
      Director has elected under clause (w) and the event referred to in clause
      (x) occurs first, the Director shall be deemed to have elected under
      clause (x). In the event that the Director has elected under clause (w)
      and anticipates that the event referred to in clause (x) will not occur
      prior to the tenth anniversary of such date of grant, the Director may
      elect, no later than October 31 of the calendar year immediately prior to
      the tenth anniversary of such date of grant a second extension of the
      period of restriction to such time as shall be either (y) the fifteenth
      anniversary of such date of grant or (z) six months and one day after such
      time as the restrictions set forth in Section 2.2(c) other than this
      clause (1) shall otherwise lapse; provided, however, that if the Director
      has elected under clause (y) and the event referred to in clause (z)
      occurs first, the Director shall be deemed to have elected under clause
      (z).

            (2) Retirement from the Board at age 72.

                                       2
<PAGE>

            (3) "Change in Control" of the Company. A "Change in Control" shall
      be deemed to have occurred if:

                  (i) a report on Schedule 13D shall be filed with the
            Securities and Exchange Commission pursuant to Section 13(d) of the
            Securities Exchange Act of 1934 (the "Act") disclosing that any
            person (within the meaning of Section 13(d) of the Act), other than
            the Company or a subsidiary of the Company or any employee benefit
            plan sponsored by the Company or a subsidiary of the Company, is the
            beneficial owner directly or indirectly of twenty percent (20%) or
            more of the outstanding Stock;

                  (ii) any person (within the meaning of Section 13(d) of the
            Act), other than the Company or a subsidiary of the Company, or any
            employee benefit plan sponsored by the Company or a subsidiary of
            the Company, shall purchase shares pursuant to a tender offer or
            exchange offer to acquire any Stock of the Company (or securities
            convertible into Stock) for cash, securities or any other
            consideration, provided that after consummation of the offer, the
            person in question is the beneficial owner (as such term is defined
            in Rule 13d-3 under the Act), directly or indirectly, of twenty
            percent (20%) or more of the outstanding Stock of the Company
            (calculated as provided in paragraph (d) of Rule 13d-3 under the Act
            in the case of rights to acquire Stock);

                  (iii) the stockholders of the Company shall approve (A) any
            consolidation, business combination or merger involving the Company,
            other than a consolidation, business combination or merger involving
            the Company in which holders of Stock immediately prior to the
            consolidation, business combination or merger (x) hold fifty percent
            (50%) or more of the combined voting power of the Company (or the
            corporation resulting from the merger or consolidation or the parent
            of such corporation) after the merger and (y) have the same
            proportionate ownership of common stock of the Company (or the
            corporation resulting from the merger or consolidation or the parent
            of such corporation), relative to other holders of Stock immediately
            prior to the merger, business combination or consolidation,
            immediately after the merger as immediately before, or (B) any sale,
            lease, exchange or other transfer (in one transaction or a series of
            related transactions) of all or substantially all the assets of the
            Company;

                  (iv) there shall have been a change in a majority of the
            members of the Board of Directors of the Company within a 12-month
            period unless the election or nomination for election by the
            Company' stockholders of each new director during such 12-month
            period was approved by the vote of two-thirds of the directors then
            still in office who (x) were directors at the beginning of such
            12-month period or (y) whose nomination for election or election as
            directors was recommended or approved by a majority of the directors
            who where directors at the beginning of such 12-month period; or

                  (v) any person (within the meaning of Section 13(d) of the
            Act) (other than the Company or any subsidiary of the Company or any
            employee benefit

                                       3
<PAGE>

            plan (or related trust) sponsored by the Company or a subsidiary of
            the Company) becomes the beneficial owner (as such term is defined
            in Rule 13d-3 under the Act) of twenty percent (20%) or more of the
            Stock.

            (4) Death of the Director.

            (5) Disability of the Director.

            (6) Termination of service from the Board on account of (i) a
      physical or mental condition that, in the opinion of a qualified
      physician, is expected to impede the Director's ability to fulfill his or
      her principal duties for a period of at least three months; (ii) the
      relocation of the Director's principal place of business to a location
      that increases the time required for such Director to travel to the
      Company's headquarters by more than 50%; (iii) the acceptance by the
      Director of a position (other than an honorary position) in the government
      of the United States, any State or any municipality or any subdivision
      thereof or any organization performing any quasi-governmental function;
      (iv) any circumstances which, in the opinion of outside counsel to the
      Company, would (or could reasonably be expected to) conflict with
      applicable law or any written policy of the Company; or (v) any other
      circumstance in which the Committee believes, in its sole discretion, that
      the purposes for which the grants of Restricted Stock were made have been
      fulfilled, and as such is consistent with the intention of the Plan.

            (7) Notwithstanding Section 2.2(c)(2) hereof, retirement from the
      Board at or after attaining age 65, provided that such Director was a
      member of the Board of Directors of the Company's corporate predecessor,
      ITT Corporation, a Delaware corporation, on December 18, 1995 and served
      as a Director of the Company thereafter.

      (d) Dividends and Voting Rights -- The Director shall, subject to Section
2.2(c), possess all incidents of ownership of the shares of Restricted Stock
including the right to receive dividends with respect to such shares and to vote
such shares.

      (e) The Company shall deliver to the Director, or the beneficiary of such
Director, if applicable, all of the shares of stock that were awarded to the
Director as Restricted Stock, within 30 days following the lapse of restrictions
as described under Section 2.2(c). If the Director discontinues serving on the
Board prior to the date upon which restrictions lapse as described under Section
2.2(c), such Directors Restricted Stock will be forfeited by the Director and
transferred to and reacquired by the Company at no cost to the Company.

                       ARTICLE III -- GENERAL PROVISIONS

3.1 AUTHORITY

      Appropriate officers of the Company designated by the Committee are
authorized to execute Restricted Stock agreements, and amendments thereto, in
the name of the Company, as directed from time to time by the Committee.

                                       4
<PAGE>

3.2 ADJUSTMENTS IN THE EVENT OF CHANGE IN COMMON STOCK OF THE COMPANY

      In the event of any reorganization, merger, recapitalization,
consolidation, liquidation, stock dividend, stock split, reclassification,
combination of shares, rights offering, split-up, or extraordinary dividend
(including a spin-off) or divestiture, or any other change in the corporate
structure or shares, the number and kind of shares which thereafter may be
granted under the Plan and the number of shares of Restricted Stock awarded
pursuant to Section 2.1 with respect to which all restrictions have not lapsed,
shall be appropriately adjusted consistent with such change in such manner as
the Board in its discretion may deem equitable to prevent substantial dilution
or enlargement of the rights granted to, or available for, Directors
participating in the Plan. Any fractional shares resulting from such adjustments
shall be eliminated.

3.3 RIGHTS OF DIRECTORS

      The Plan shall not be deemed to create any obligation on the part of the
Board to nominate any Director for reelection by the Company's stockholders or
to retain any Director at any particular rate of compensation. The Company shall
not be obligated to issue Stock pursuant to an award of Restricted Stock for
which the restrictions hereunder have lapsed if such issuance would constitute a
violation of any applicable law. Except as provided herein, no Director shall
have any rights as a stockholder with respect to any shares of Restricted Stock
awarded to him.

3.4 BENEFICIARY

      A Director may file with the Committee a written designation of a
beneficiary on such form as may be prescribed by the Committee and may, from
time to time, amend or revoke such designation. In the event of the death of a
Director, his beneficiary shall have the right to receive the shares of
Restricted Stock awarded pursuant to the Plan. If no designated beneficiary
survives the Director, the executor or administrator of the Director's estate
shall be deemed to be the Director's beneficiary.

3.5 LAWS AND REGULATIONS

      The Committee shall have the right to condition any issuance of shares to
any Director hereunder on such Director's undertaking in writing to comply with
such restrictions on the subsequent disposition of such shares as the Committee
shall deem necessary or advisable as a result of any applicable law or
regulation. The Committee may postpone the delivery of stock following the lapse
of restrictions with respect to awards of Restricted Stock for such time as the
Committee in its discretion may deem necessary, in order to permit the Company
with reasonable diligence (i) to effect or maintain registration of the Plan, or
the shares issuable upon the lapse of certain restrictions respecting awards of
Restricted Stock, under the Securities Act of 1933 or the securities laws of any
applicable jurisdiction, or (ii) to determine that such shares and the Plan are
exempt from such registration; the Company shall not be obligated by virtue of
any Restricted Stock agreement or any provision of the Plan to recognize the
lapse of certain restrictions respecting awards of Restricted Stock or issue
shares in violation of said Act or of the law of the government having
jurisdiction thereof.

                                       5
<PAGE>

3.6 AMENDMENT, SUSPENSION AND DISCONTINUANCE OF THE PLAN

      The Board may from time to time amend, suspend or discontinue the Plan,
provided that the Board may not, without the approval of the holders of a
majority of the outstanding shares entitled to vote, take any action which would
cause the Plan to no longer comply with Rule 16b-3 under the Act, or any
successor rule or other regulatory requirement.

      No amendment, suspension or discontinuance of the Plan shall impair a
Directors right under a Restricted Stock award previously granted to him without
his consent.

3.7 GOVERNING LAW

      This Plan and all determinations made and actions taken pursuant hereto
shall be governed by the laws of the State of New York.

3.8 EFFECTIVE DATE AND DURATION OF THE PLAN

      This Plan shall be effective upon the Distribution Date (as defined in the
Proxy Statement of ITT Corporation dated August 30, 1995) subject to the
approval of the Plan by the stockholders of ITT Corporation, and shall terminate
on December 31, 2005, provided that grants of Restricted Stock made prior to the
termination of the Plan may vest following such termination in accordance with
their terms.

                           ADMINISTRATION OF THE PLAN

      The Compensation and Personnel Committee of the Board of Directors of ITT
Industries, the members of which serve during the pleasure of the Board,
administers the Plan but does not act as a trustee or in any other fiduciary
capacity with respect thereto.

                              RESALE RESTRICTIONS

      The Plan contains no restrictions on the resale of Common Stock once the
Plan restriction period has ended. However, persons who may be deemed to be
affiliates of ITT Industries may not reoffer or resell shares of Common Stock in
a transaction which is not registered under the Securities Act of 1933, as
amended (the "Act"), except pursuant to Rule 144 under the Act or another
exemption thereunder. Rule 144 requires, among other things, that (1) any sales
of Common Stock by such affiliates must be made through a broker, and (2) an
appropriate Form 144 must be mailed to the Securities and Exchange Commission
prior to or concurrently with the placing of a sell order with the broker, with
certain exceptions.

                             FEDERAL TAX TREATMENT

      Set forth below is a summary of the federal income tax consequences under
the Internal Revenue Code of 1986, as amended (the "Code"), of the grant and
vesting of restricted stock awarded to a director of ITT Industries ("Director")
under the Plan. The following summary does not include any discussion of state,
local or foreign income tax consequences or the effect of gift, estate or
inheritance taxes, any of which may be significant to a particular Director
eligible to receive an award. In addition, this summary does not apply to every
specific transaction

                                       6
<PAGE>

that may occur. Each recipient of an award under the Plan should consult his or
her tax advisor for advice pertaining to his or her particular circumstances.
The Plan is not qualified under Section 401 (a) of the Code.

      Under the Code, a Director normally will not realize taxable income and
ITT Industries will not be entitled to a deduction upon the grant of restricted
stock, since such stock is subject to a "substantial risk of forfeiture" (as
defined in the Code). At the time such restrictions lapse and the shares of
restricted stock are no longer subject to a substantial risk of forfeiture, a
Director will realize taxable compensation (ordinary income) in an amount equal
to the fair market value on the date the restrictions lapse, of the number of
shares of Common Stock which have become nonforfeitable or transferable.
Likewise, ITT Industries will be entitled to a deduction in the same amount in
the same year, provided ITT Industries complies with applicable tax withholding
requirements. However, a Director may make an income recognition election under
Section 83(b) of the Code (an "83(b) Election") within 30 days of the award and
recognize taxable ordinary income in the year the shares of restricted stock are
awarded in an amount equal to their fair market value at the time of the award,
determined without regard to the restrictions. In that event, ITT Industries
will be entitled to a deduction in such year in the same amount, provided ITT
Industries complies with applicable tax withholding requirements. Any gain or
loss realized by the recipient upon the subsequent disposition of Common Stock
will be capital gain (or loss) to the extent the proceeds of sale exceed the
fair market value of the shares on the date of grant, which became the
Director's tax basis as a result of the 83(b) Election. If the Director makes an
83(b) Election and subsequently terminates his employment during the restriction
period, thus forfeiting the shares of restricted stock, the taxes paid on the
award of the shares are also forfeited and ITT Industries must include as
ordinary income the amount it previously deducted in the year of grant with
respect to such shares. Any dividends with respect to the shares of restricted
stock that are paid or made available to a recipient who has not made an 83(b)
Election while the shares remain forfeitable are treated as additional
compensation taxable as ordinary income to the Director and deductible by ITT
Industries when paid. If an 83(b) Election has been made with respect to the
restricted stock, the dividends represent ordinary dividend income to the
Director and are not deductible by ITT Industries.

                                       7

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