SEC Contract Filing

Filing Date: 2018-04-20

Document Content:
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>6
<FILENAME>ex106transitionagreement.htm
<DESCRIPTION>EXHIBIT 10.6
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<div><a name="sB04F4451C537DB5AFB78D43A72C4906D"></a></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Exhibit 10.6</font></div></div><div><br></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">CONFIDENTIAL TRANSITION AGREEMENT </font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This CONFIDENTIAL TRANSITION AGREEMENT (&#8220;Agreement&#8221;) is made effective this 15th day of March, 2018, by and between Angela D. Jilek (&#8220;Employee&#8221;) and Pentair Management Company on behalf of itself, its predecessors, subsidiaries and affiliated entities (collectively, &#8220;Company&#8221;).</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, the parties understand and agree that Employee's last day of employment with the Company will be May 1, 2018 (the &#8220;Separation Date&#8221;).</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, the parties now wish to enter into this Agreement to memorialize their mutual understanding and agreement regarding their respective obligations to one another between now and the Separation Date (which such period shall be known as the &#8220;Transition Period&#8221;) and their mutual understanding and agreement regarding the terms and conditions of Employee's separation of employment.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREFORE, for good and valuable consideration, the parties hereby agree as follows:</font></div><div style="line-height:120%;padding-left:0px;padding-bottom:12px;text-align:left;text-indent:48px;"><font style="padding-bottom:12px;text-align:left;font-family:inherit;font-size:12pt;padding-right:48px;">1.</font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Separation Payment and Other Benefits</font><font style="font-family:inherit;font-size:12pt;">. Provided Employee becomes eligible to sign, signs and does not rescind the post-employment release of claims in the form attached hereto as Exhibit A (the &#8220;Release&#8221;) after her employment with the Company has ended and subject to the conditions of this Agreement, the Company shall pay Employee the sum of $1,934,000.00, less applicable withholdings (the &#8220;Separation Payment&#8221;). The Separation Payment shall be paid as follows: (a) a first installment of $688,900.00, less withholdings, to be paid within twenty (20) days following Employee&#8217;s delivery of the signed Release to the Company following the Separation Date, and (b) a conditional second installment of $1,245,100, less withholdings, payable within twelve (12) months following the Separation Date provided Employee has remained in strict compliance with her obligations under this Agreement. In order to become eligible to sign the Release and subject to Section 3 below, Employee must remain an employee in good standing throughout the entire Transition Period.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Employee will be paid her accrued and unused vacation balance (equivalent to four (4) weeks, less applicable withholdings) following the Separation Date with or without this Agreement. Further, provided Employee does not exercise her right of rescission under Section 8, the Company will pay to Employee an additional lump sum of $23,246.00 less applicable withholdings (the &#8220;COBRA Subsidy&#8221;), which Employee may use toward the cost of future health insurance premiums or for other purposes. The COBRA Subsidy will be paid to Employee at the same time the first installment of the Separation Payment is made. </font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">As a participant in the Pentair Management Incentive Plan (&#8220;MIP&#8221;), Employee will receive a MIP bonus award for the 2017 year, subject to the terms and conditions of the MIP, for the 2017 year payable by March 15, 2018 at the same time other eligible participants in the MIP receive earned payments attributable to the 2017 year. Further, provided Employee does not exercise her right of rescission under Section 8, then when the Company performs the 2017 year-end calculation in order to calculate the amount of the bonus payment for the 2017 year under the MIP, the SDF metric under the MIP shall be set at 100% of target. Employee will remain eligible to receive a prorated MIP bonus award for the 2018 year, subject to the terms and </font></div><div><br></div><div><div style="line-height:120%;text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">15045978.1</font></div></div><hr style="page-break-after:always"><div></div><div><br></div><div style="li