SEC Contract Filing

Filing Date: 2017-11-14

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<TYPE>EX-10.3
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; LINE-HEIGHT: 11.4pt">EXHIBIT 10.3</div>

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<div style="TEXT-ALIGN: left; MARGIN-TOP: 6pt; LINE-HEIGHT: 11.4pt; TEXT-INDENT: 28.8pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">1.</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.4pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Purpose</u></font>.&#160; The purpose of the Plan is to enable ESCO Technologies Inc. (the "Company") to compensate each non-employee member of the board of directors of the Company (such board of directors hereinafter referred to as the "Board" and each such non-employee member of the Board hereinafter referred to as the "Director") who contributes to the Company's success by his or her ability, ingenuity and knowledge, and to better ensure that the interests of such Director are more closely aligned with the interests of the Company's shareholders by paying a significant portion of his or her compensation in shares of the Company's common stock ("Common Stock").</font></div>

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<div style="TEXT-ALIGN: left; MARGIN-TOP: 6pt; LINE-HEIGHT: 11.4pt; TEXT-INDENT: 28.8pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">(a)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.4pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Each Director shall receive an annual retainer fee (the "Retainer Fee") in an amount determined from time to time by action of the Human Resources and Compensation Committee of the Board ("HRCC").&#160; The HRCC shall also determine from time to time the frequency of the payments and distributions of the Retainer Fee.</font></div>

<div style="TEXT-ALIGN: left; MARGIN-TOP: 6pt; LINE-HEIGHT: 11.4pt; TEXT-INDENT: 28.8pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">(b)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.4pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">The HRCC shall also determine what portion (if any) of the Retainer Fee shall be payable in cash (the "Cash Portion of the Retainer Fee"), and what portion (if any) of the Retainer Fee shall be distributed in shares of Common Stock (the "Stock Portion of the Retainer Fee").&#160; The Stock Portion of the Retainer Fee shall be either a predetermined number of shares of Common Stock or a number of shares of Common Stock having an aggregate Fair Market Value as of the date on which the Stock Portion of the Retainer Fee is to be distributed.&#160; For purposes of this Plan, "Fair Market Value" as of a given date shall mean the closing price of the Common Stock on the New York Stock Exchange on such date, or if such date is not a trading day on the New York Stock Exchange, then on the last previous trading day.&#160; Distribution of the Stock Portion of the Retainer Fee to each Director shall occur promptly after the beginning of the year for which it is paid.&#160; A new Director elected to the Board and serving as a Director for a partial year may be awarded only a portion of the Cash Portion of the Retainer Fee and or Stock Portion of the Retainer Fee as determined by the HRCC.</font></div>

<div style="TEXT-ALIGN: left; MARGIN-TOP: 6pt; LINE-HEIGHT: 11.4pt; TEXT-INDENT: 28.8pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">(c)</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 5.4pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">To be entitled to a Retainer Fee, a Director must be serving on the Board on both the day the Cash Portion of the Retainer Fee is paid and on the day the Stock Portion of the Retainer Fee is distributed.</font></div