{"id":40102,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/management-continuity-agreement-change-in-control-enpro.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"management-continuity-agreement-change-in-control-enpro","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/management-continuity-agreement-change-in-control-enpro.html","title":{"rendered":"Management Continuity Agreement &#8211; Change in Control &#8211; EnPro Industries Inc."},"content":{"rendered":"<p align=\"center\"><strong>MANAGEMENT CONTINUITY AGREEMENT <\/strong><\/p>\n<p><strong>THIS AGREEMENT<\/strong> dated as of this 15<sup>th<\/sup> day of<br \/>\nDecember 2011 between Marvin A. Riley (the &#8220;Executive&#8221;) and EnPro Industries,<br \/>\nInc., a North Carolina corporation (the &#8220;Company&#8221;).<\/p>\n<p><strong>WHEREAS,<\/strong> the Company considers it essential to the best<br \/>\ninterests of its shareholders to foster the continuous employment of key<br \/>\nmanagement personnel in the event there is, or is threatened, a change in<br \/>\ncontrol of the Company; and<\/p>\n<p><strong>WHEREAS<\/strong>, the Company recognizes that the uncertainty and<br \/>\nquestions which may arise among key management in connection with the<br \/>\npossibility of a change in control may result in the departure or distraction of<br \/>\nkey management personnel to the detriment of the Company and its shareholders;<br \/>\nand<\/p>\n<p><strong>WHEREAS<\/strong>, the Company desires to provide certain protection<br \/>\nto Executive in the event of a change in control of the Company as set forth in<br \/>\nthis Agreement in order to induce Executive to remain in the employ of the<br \/>\nCompany notwithstanding any risks and uncertainties created by the possibility<br \/>\nof a change in control of the Company;<\/p>\n<p align=\"center\"><strong>WITNESSETH: <\/strong><\/p>\n<p><strong>NOW, THEREFORE<\/strong>, in consideration of the foregoing and the<br \/>\nmutual promises herein contained, the parties agree as follows:<\/p>\n<p>1. <strong><u>Term.<\/u><\/strong> The &#8220;Term&#8221; of this Agreement shall mean the<br \/>\nperiod commencing on the date hereof and ending twenty-four (24) months after<br \/>\nsuch date; provided, however, that commencing on the date one year after the<br \/>\ndate hereof, and on each annual anniversary of such date (such date and each<br \/>\nannual anniversary thereof shall be hereinafter referred to as the &#8220;Renewal<br \/>\nDate&#8221;), the Term shall be automatically extended so as to terminate twenty-four<br \/>\n(24) months from such Renewal Date, unless at least sixty (60) days prior to the<br \/>\nRenewal Date the Company shall give notice to the Executive that the Term shall<br \/>\nnot be so extended.<\/p>\n<p>2. <strong><u>Period of Employment.<\/u><\/strong> Executive153s &#8220;Period of<br \/>\nEmployment&#8221; shall commence on the date on which a Change in Control occurs<br \/>\nduring the Term and shall end on the date that is twenty-four (24) months after<br \/>\nthe date on which such Change in Control occurs (subject to the provisions of<br \/>\nSection 20 below pursuant to which the Period of Employment may be deemed to<br \/>\nhave commenced prior to the date of a Change in Control in certain<br \/>\ncircumstances).<\/p>\n<p>3. <strong><u>Certain Definitions.<\/u><\/strong> For purposes of this<br \/>\nAgreement:<\/p>\n<p>&#8220;Board&#8221; shall mean the Board of Directors of the Company.<\/p>\n<p>&#8220;Cause&#8221; shall mean Executive153s termination of employment with the Company due<br \/>\nto (A) the willful and continued failure by Executive to substantially perform<br \/>\nExecutive153s duties with the Company, which failure causes material and<br \/>\ndemonstrable injury to the Company (other than any such failure resulting from<br \/>\nExecutive153s incapacity due to physical or mental illness), after a demand for<br \/>\nsubstantial performance is delivered<\/p>\n<hr>\n<p>to Executive by the Board which specifically identifies the manner in which<br \/>\nthe Board believes that Executive has not substantially performed Executive153s<br \/>\nduties, and after Executive has been given a period (hereinafter known as the<br \/>\n&#8220;Cure Period&#8221;) of at least thirty (30) days to correct Executive153s performance,<br \/>\nor (B) the willful engaging by Executive in other gross misconduct materially<br \/>\nand demonstrably injurious to the Company. For purposes hereof, no act, or<br \/>\nfailure to act, on Executive153s part shall be considered &#8220;willful&#8221; unless<br \/>\nconclusively demonstrated to have been done, or omitted to be done, by Executive<br \/>\nnot in good faith and without reasonable belief that Executive153s action or<br \/>\nomission was in the best interests of the Company. Notwithstanding the<br \/>\nforegoing, Executive shall not be deemed to have been terminated for Cause<br \/>\nunless and until there shall have been delivered to Executive a Notice of<br \/>\nTermination which shall include a copy of a resolution duly adopted by the<br \/>\naffirmative vote of not less than three-quarters of the entire membership of the<br \/>\nBoard at a meeting of the Board called and held for the purpose (after<br \/>\nreasonable notice to Executive and an opportunity for Executive, together with<br \/>\nExecutive153s counsel, to be heard before the Board), finding that in the good<br \/>\nfaith opinion of the Board Executive was guilty of conduct set forth above in<br \/>\nclause (A) (including the expiration of the Cure Period without the correction<br \/>\nof Executive153s performance) or clause (B) above and specifying the particulars<br \/>\nthereof in detail.<\/p>\n<p>&#8220;Change in Control&#8221; shall mean:<\/p>\n<p>(i) The acquisition by any individual, entity or group (within the meaning of<br \/>\nSection 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended<br \/>\n(the &#8220;Exchange Act&#8221;)), of beneficial ownership (within the meaning of Rule 13d-3<br \/>\npromulgated under the Exchange Act) of 20% or more of either (A) the then<br \/>\noutstanding shares of common stock of the Company (the &#8220;Outstanding Company<br \/>\nCommon Stock&#8221;) or (B) the combined voting power of the then outstanding voting<br \/>\nsecurities of the Company entitled to vote generally in the election of<br \/>\ndirectors (the &#8220;Outstanding Company Voting Securities&#8221;); provided, however, that<br \/>\nthe following acquisitions shall not constitute a Change in Control: (A) any<br \/>\nacquisition directly from the Company (other than by exercise of a conversion<br \/>\nprivilege), (B) any acquisition by the Company or any of its subsidiaries, (C)<br \/>\nany acquisition by any employee benefit plan (or related trust) sponsored or<br \/>\nmaintained by the Company or any of its subsidiaries or (D) any acquisition by<br \/>\nany company with respect to which, following such acquisition, more than 70% of,<br \/>\nrespectively, the then outstanding shares of common stock of such company and<br \/>\nthe combined voting power of the then outstanding voting securities of such<br \/>\ncompany entitled to vote generally in the election of directors is then<br \/>\nbeneficially owned, directly or indirectly, by all or substantially all of the<br \/>\nindividuals and entities who were the beneficial owners, respectively, of the<br \/>\nOutstanding Company Common Stock and Outstanding Company Voting Securities<br \/>\nimmediately prior to such acquisition in substantially the same proportions as<br \/>\ntheir ownership, solely in their capacity as shareholders of the Company,<br \/>\nimmediately prior to such acquisition, of the Outstanding Company Common Stock<br \/>\nand Outstanding Company Voting Securities, as the case may be; or (ii)<br \/>\nindividuals who, as of the Distribution Date (as such term is defined in the<br \/>\nDistribution Agreement among Goodrich Corporation, EnPro Industries, Inc. and<br \/>\nColtec Industries Inc.), constitute the Board (the &#8220;Incumbent Board&#8221;) cease for<br \/>\nany reason to constitute at least a majority of the Board; provided, however,<br \/>\nthat any individual becoming a director subsequent to the Distribution Date<br \/>\nwhose election, or nomination for election by the Company153s shareholders, was<br \/>\napproved by a vote of at least a majority of the directors then comprising the<br \/>\nIncumbent Board shall be considered as though such<\/p>\n<p align=\"center\">2<\/p>\n<hr>\n<p>individual were a member of the Incumbent Board, but excluding, for this<br \/>\npurpose, any such individual whose initial assumption of office occurs as a<br \/>\nresult of either an actual or threatened election contest; or (iii) consummation<br \/>\nof a reorganization, merger or consolidation, in each case, with respect to<br \/>\nwhich all or substantially all of the individuals and entities who were the<br \/>\nbeneficial owners, respectively, of the Outstanding Company Common Stock and<br \/>\nOutstanding Company Voting Securities immediately prior to such reorganization,<br \/>\nmerger or consolidation, do not, following such reorganization, merger or<br \/>\nconsolidation, beneficially own, directly or indirectly, solely in their<br \/>\ncapacity as shareholders of the Company, more than 70% of, respectively, the<br \/>\nthen outstanding shares of common stock and the combined voting power of the<br \/>\nthen outstanding voting securities entitled to vote generally in the election of<br \/>\ndirectors, as the case may be, of the company resulting from such<br \/>\nreorganization, merger or consolidation in substantially the same proportions as<br \/>\ntheir ownership, immediately prior to such reorganization, merger or<br \/>\nconsolidation of the Outstanding Company Common Stock and Outstanding Company<br \/>\nVoting Securities, as the case may be; or (iv) consummation of (A) a complete<br \/>\nliquidation or dissolution of the Company or (B) a sale or other disposition of<br \/>\nall or substantially all of the assets of the Company, other than to a company,<br \/>\nwith respect to which following such sale or other disposition, more than 70%<br \/>\nof, respectively, the then outstanding shares of common stock of such company<br \/>\nand the combined voting power of the then outstanding voting securities of such<br \/>\ncompany entitled to vote generally in the election of directors is then<br \/>\nbeneficially owned, directly or indirectly, by all or substantially all of the<br \/>\nindividuals and entities, solely in their capacity as shareholders of the<br \/>\nCompany, who were the beneficial owners, respectively, of the Outstanding<br \/>\nCompany Common Stock and Outstanding Company Voting Securities immediately prior<br \/>\nto such sale or other disposition in substantially the same proportion as their<br \/>\nownership, immediately prior to such sale or other disposition, of the<br \/>\nOutstanding Company Common Stock and Outstanding Company Voting Securities, as<br \/>\nthe case may be.<\/p>\n<p>&#8220;Date of Termination&#8221; is as defined in Section 8 below.<\/p>\n<p>&#8220;Good Reason&#8221; shall mean:<\/p>\n<p>(i) without Executive153s express written consent, (A) the assignment to<br \/>\nExecutive of any new duties or responsibilities substantially inconsistent in<br \/>\ncharacter with Executive153s duties and responsibilities within the Company<br \/>\nimmediately prior to a Change in Control, (B) any substantial adverse change in<br \/>\nExecutive153s duties and responsibilities as in effect immediately prior to a<br \/>\nChange in Control, including, but not limited to, a reduction in duties or<br \/>\nresponsibilities which occurs because the Company is no longer an independent<br \/>\npublicly-held entity, (C) any removal of Executive from or any failure to<br \/>\nre-elect Executive to any director position of the Company, (D) a change in the<br \/>\nannual or long term incentive plan in which Executive currently participates<br \/>\nsuch that Executive153s opportunity to earn incentive compensation is impaired,<br \/>\n(E) a material reduction in the aggregate value of Company perquisites made<br \/>\navailable to Executive, (F) an elimination or material impairment of Executive153s<br \/>\nability to participate in retirement plans comparable to those in which<br \/>\nExecutive currently participates, (G) any substantial increase in Executive153s<br \/>\nobligation to travel on the Company153s business over Executive153s present business<br \/>\ntravel obligations, or (H) an elimination or material impairment of Executive153s<br \/>\nability to receive stock options with values comparable to those Executive was<br \/>\ngranted within the one year period preceding the commencement of the Period of<br \/>\nEmployment; (ii) the failure of the Company to comply with any other of its<br \/>\nobligations<\/p>\n<p align=\"center\">3<\/p>\n<hr>\n<p>under Section 4 herein; (iii) the relocation of the offices of the Company at<br \/>\nwhich Executive was employed immediately prior to the Change in Control to a<br \/>\nlocation which is more than fifty (50) miles from such prior location, or the<br \/>\nfailure of the Company to (A) pay or reimburse Executive, in accordance with the<br \/>\nCompany153s relocation policy for its employees in existence immediately prior to<br \/>\na Change in Control, for all reasonable costs and expenses; plus &#8220;gross ups&#8221;<br \/>\nreferred to in such policy incurred by Executive relating to a change of<br \/>\nExecutive153s principal residence in connection with any relocation of the<br \/>\nCompany153s offices to which Executive consents, and (B) indemnify Executive<br \/>\nagainst any loss (defined as the difference between the actual sale price of<br \/>\nsuch residence and the higher of (1) Executive153s aggregate investment in such<br \/>\nresidence or (2) the fair market value of such residence as determined by the<br \/>\nrelocation management organization used by the Company immediately prior to the<br \/>\nChange in Control (or other real estate appraiser designated by Executive and<br \/>\nreasonably satisfactory to the Company)) realized in the sale of Executive153s<br \/>\nprincipal residence in connection with any such change of residence; (iv) the<br \/>\nfailure of the Company to obtain the assumption of and the agreement to perform<br \/>\nthis Agreement by any successor as contemplated in Section 11 hereof; or (v) any<br \/>\npurported termination of Executive153s employment during the Period of Employment<br \/>\nwhich is not effected pursuant to a Notice of Termination satisfying the<br \/>\nrequirements of Section 7 hereof.<\/p>\n<p>&#8220;Incapacity Discharge&#8221; means Executive153s termination of employment with the<br \/>\nCompany if, as a result of Executive153s incapacity due to physical or mental<br \/>\nillness, Executive shall have been absent from Executive153s duties with the<br \/>\nCompany on a full-time basis for one-hundred twenty (120) consecutive business<br \/>\ndays, and within thirty (30) days after a written Notice of Termination is<br \/>\ngiven, Executive shall not have returned to the full-time performance of<br \/>\nExecutive153s duties.<\/p>\n<p>&#8220;Mandatory Retirement Date&#8221; shall mean the compulsory retirement date, if<br \/>\nany, established by the Company for those executives of the Company who, by<br \/>\nreason of their positions and the size of their nonforfeitable annual retirement<br \/>\nbenefits under the Company153s pension, profit-sharing, and deferred compensation<br \/>\nplans, are exempt from, the provisions of the Age Discrimination in Employment<br \/>\nAct, 29 U.S.C. Sections 621, et seq., which date shall not in any event be<br \/>\nearlier for any executive than the last day of the month in which such Executive<br \/>\nreaches age 65.<\/p>\n<p>&#8220;Notice of Termination&#8221; is as defined in Section 7 below.<\/p>\n<p>&#8220;Payment Period&#8221; shall mean twenty-four (24) months, provided that the<br \/>\nPayment Period shall not exceed the number of whole calendar months between the<br \/>\nExecutive153s Date of Termination and Mandatory Retirement Date (if applicable).\n<\/p>\n<p>4. <strong><u>Compensation During Period of Employment.<\/u><\/strong> For so<br \/>\nlong during Executive153s Period of Employment as Executive is an employee of the<br \/>\nCompany, the Company shall be obligated to compensate Executive as follows:<\/p>\n<p>(a) Executive shall continue to receive Executive153s full base salary at the<br \/>\nrate in effect immediately prior to the Change in Control. Executive153s base<br \/>\nsalary shall be increased annually, with each such increase due on the<br \/>\nanniversary date of Executive153s most recent previous increase. Each such<br \/>\nincrease shall be no less than an amount which<\/p>\n<p align=\"center\">4<\/p>\n<hr>\n<p>at least equals on a percentage basis the mean of the annualized percentage<br \/>\nincreases in base salary for all elected officers of the Company during the two<br \/>\nfull calendar years immediately preceding the Change in Control.<\/p>\n<p>(b) Executive shall continue to participate in all benefit and compensation<br \/>\nplans (including but not limited to the Equity Compensation Plan, Long-Term<br \/>\nIncentive Program, Performance Share Deferred Compensation Plan, Annual<br \/>\nPerformance Plan, Executive Life Insurance Program, Deferred Compensation Plan,<br \/>\n401(K) plan, savings plan, flexible benefits plan, life insurance plan, health<br \/>\nand accident plan or disability plan) in which Executive was participating<br \/>\nimmediately prior to the Change in Control, or in plans providing substantially<br \/>\nsimilar benefits, in either case upon terms and conditions and at levels at<br \/>\nleast as favorable as those provided to Executive under the plans in which<br \/>\nExecutive was participating immediately prior to the Change in Control;<\/p>\n<p>(c) Executive shall continue to receive all fringe benefits, perquisites, and<br \/>\nsimilar arrangements which Executive was entitled to receive immediately prior<br \/>\nto the Change in Control; and<\/p>\n<p>(d) Executive shall continue to receive annually the number of paid vacation<br \/>\ndays and holidays Executive was entitled to receive immediately prior to the<br \/>\nChange in Control.<\/p>\n<p>5. <strong><u>Compensation Upon Termination of Employment.<\/u><\/strong> The<br \/>\nfollowing provisions set forth the benefits that may become payable to Executive<br \/>\nupon termination of employment with the Company during the Period of Employment<br \/>\nin accordance with, and subject to, the provisions of Section 6 below:<\/p>\n<p>(a) By not later than the fifth business day following the Date of<br \/>\nTermination, the Company shall pay Executive in a lump sum an amount equal to<br \/>\nthe sum of the following:<\/p>\n<p>(i) any base salary that is earned but unpaid as of the Date of Termination;\n<\/p>\n<p>(ii) a pro rata portion of the &#8220;target incentive amount&#8221; under the Annual<br \/>\nPerformance Plan for the calendar year in which the Date of Termination occurs<br \/>\n(based on the number of calendar days in such calendar year completed through<br \/>\nthe Date of Termination); and<\/p>\n<p>(iii) a pro rata portion of the &#8220;calculated market value&#8221; of the phantom<br \/>\nPerformance Shares, if any, awarded to Executive under the Company153s Long-Term<br \/>\nIncentive Program (the &#8220;LTIP&#8221;) for each Plan Cycle under the LTIP that has not<br \/>\nbeen completed as of the Date of Termination, determined as follows:<\/p>\n<p>(A) The performance for each such Plan Cycle under the applicable LTIP award<br \/>\nagreement shall be determined based on (x) for any completed calendar year of<br \/>\nthe Plan Cycle as of the Date of Termination, actual performance for the<br \/>\ncalendar year, (y) for the calendar year in which the Date of Termination occurs<br \/>\nif at least one calendar quarter has been completed during such calendar year,<br \/>\nthe greater of target<\/p>\n<p align=\"center\">5<\/p>\n<hr>\n<p>performance for the calendar year or actual performance for the completed<br \/>\ncalendar quarter(s) for the calendar year annualized for the year, and (z) for<br \/>\nany other calendar years of the Plan Cycle, target performance for the calendar<br \/>\nyear.<\/p>\n<p>(B) The number of phantom Performance Shares for each such Plan Cycle shall<br \/>\nbe adjusted in accordance with the formula set forth in the applicable LTIP<br \/>\naward agreement based on the performance for the Plan Cycle determined under<br \/>\nparagraph (A) above.<\/p>\n<p>(C) The pro rata portion of the &#8220;calculated market value&#8221; of the number of<br \/>\nphantom Performance Shares adjusted in accordance with paragraph (B) above shall<br \/>\nbe based on the number of calendar days in the Plan Cycle completed through the<br \/>\nDate of Termination.<\/p>\n<p>Section 5(c) below sets for the method for determining the &#8220;target incentive<br \/>\namount&#8221; under the Annual Performance Plan and the &#8220;calculated market value&#8221; of<br \/>\nphantom Performance Shares under the LTIP. Any amounts payable under Sections<br \/>\n5(a)(ii) or (iii) above shall be offset dollar-for-dollar by any pro rata<br \/>\npayments otherwise provided for under the Annual Performance Plan or the LTIP.\n<\/p>\n<p>(b) In lieu of any salary payments that Executive would have received if he<br \/>\nhad continued in the employment of the Company during the Payment Period, the<br \/>\nCompany shall pay to Executive in a lump sum, by not later than the fifth<br \/>\nbusiness day following the Date of Termination, an amount equal to one-twelfth<br \/>\nof Executive153s annualized base salary in effect immediately prior to the Date of<br \/>\nTermination, multiplied by the number of months in the Payment Period.<\/p>\n<p>(c) By not later than the fifth day following the Date of Termination, the<br \/>\nCompany shall pay Executive in a lump sum an amount equal to the sum of:<\/p>\n<p>(i) under the Annual Performance Plan (and in lieu of any further awards<br \/>\nunder the Annual Performance Plan that Executive would have received if he had<br \/>\ncontinued in the employment of the Company during the Payment Period), the<br \/>\nnumber of months in the Payment Period multiplied by the greatest of one-twelfth<br \/>\nof: (A) the amount most recently paid to Executive for a full calendar year; (B)<br \/>\nExecutive153s &#8220;target incentive amount&#8221; for the calendar year in which his Date of<br \/>\nTermination occurs; or (C) Executive153s &#8220;target incentive amount&#8221; in effect prior<br \/>\nto the Change in Control for the calendar year in which the Change in Control<br \/>\noccurs; plus, if applicable,<\/p>\n<p>(ii) under the LTIP (and in lieu of any further grants under the LTIP that<br \/>\nExecutive would have received if he had continued in the employment of the<br \/>\nCompany during the Payment Period), sixteen (16) multiplied by the greatest of:<br \/>\n(A) with respect to the most recently completed Plan Cycle as of the Date of<br \/>\nTermination, one-twelfth of the &#8220;calculated market value&#8221; of the Performance<br \/>\nShares actually awarded Executive (including the value of any Performance Shares<br \/>\nExecutive may have elected to defer under the Performance Share Deferred<br \/>\nCompensation Program); (B) with respect to the most recently<\/p>\n<p align=\"center\">6<\/p>\n<hr>\n<p>commenced Plan Cycle under the LTIP (if Executive is a participant in such<br \/>\nPlan Cycle) prior to Executive153s Date of Termination, one-twelfth of the<br \/>\n&#8220;calculated market value&#8221; of the phantom Performance Shares, if any, awarded to<br \/>\nExecutive; or (C) with respect to the most recently commenced Plan Cycle prior<br \/>\nto the date of the occurrence of the Change in Control, one-twelfth of the<br \/>\n&#8220;calculated market value&#8221; of the phantom Performance Shares, if any, awarded to<br \/>\nExecutive.<\/p>\n<p>For purposes of this Section 5, Executive153s &#8220;target incentive amount&#8221; under<br \/>\nthe Annual Performance Plan for a given calendar year (i.e., the calendar year<br \/>\nin which the Date of Termination occurs or the Change in Control occurs, as<br \/>\napplicable) is determined by multiplying (i) Executive153s annualized total gross<br \/>\nbase salary for the calendar year by (ii) the incentive target percentage which<br \/>\nis applicable to Executive153s incentive category under the Annual Performance<br \/>\nPlan for the calendar year. For purposes of this Section 5, the &#8220;calculated<br \/>\nmarket value&#8221; of each Performance Share actually awarded upon completion of a<br \/>\nPlan Cycle, Performance Share deferred under the Performance Share Deferred<br \/>\nCompensation Program or phantom Performance Share granted under the LTIP shall<br \/>\nbe the mean of the high and low prices of the Company153s common stock on the<br \/>\nrelevant date as reported on the New York Stock Exchange Composite Transactions<br \/>\nlisting (or similar report), or, if no sale was made on such date, then on the<br \/>\nnext preceding day on which a sale was made multiplied by the number of shares<br \/>\ninvolved in the calculation. The relevant date for Section 5(a)(iii) and clauses<br \/>\n5(c)(ii)(B) and 5(c)(ii)(C) is the date upon which the Compensation Committee<br \/>\n(&#8220;Committee&#8221;) of the Board of Directors awarded the phantom Performance Shares<br \/>\nin question; for clause 5(c)(ii)(A) the relevant date is the date on which the<br \/>\nCommittee made a determination of attainment of financial objectives and awarded<br \/>\nPerformance Shares (including any Performance Shares Executive may have elected<br \/>\nto defer under the Performance Share Deferred Compensation Program).<\/p>\n<p>Any payments received pursuant to Sections 5(c)(i) or (ii) above shall be in<br \/>\naddition to, and not in lieu of, any payments required to be made to Executive<br \/>\nas the result of the happening of an event that would constitute a change in<br \/>\ncontrol pursuant to the provisions of the Annual Performance Plan or LTIP, as<br \/>\napplicable.<\/p>\n<p>(d) By not later than the fifth day following the Date of Termination, the<br \/>\nCompany shall pay Executive in a lump sum an amount equal to the sum of:<\/p>\n<p>(i) If Executive is under age 55, or over the age of 55 but not eligible to<br \/>\nretire, at the Date of Termination the present value of all health and welfare<br \/>\nbenefits the Executive would have been entitled to had the Executive continued<br \/>\nas an employee of the Company during the Payment Period and been entitled to or<br \/>\nparticipated in the same health and welfare benefits during the Payment Period<br \/>\nas immediately prior to the Date of Termination plus an amount in cash equal to<br \/>\nthe amount necessary to cause the amount of the aggregate after-tax lump sum<br \/>\npayment the Executive receives pursuant to this provision to be equal to the<br \/>\naggregate after-tax value of the benefits which Executive would have received if<br \/>\nExecutive continued to receive such benefits as an employee; or<\/p>\n<p align=\"center\">7<\/p>\n<hr>\n<p>(ii) If Executive is age 55 or over and eligible to retire on the Date of<br \/>\nTermination, the present value of the health and welfare benefits to which<br \/>\nExecutive would have been entitled under the Company153s general retirement<br \/>\npolicies if Executive retired on the Date of Termination with the Company paying<br \/>\nthat percentage of the premium cost of the plans which it would have paid under<br \/>\nthe terms of the plans in effect immediately prior to the Change of Control with<br \/>\nrespect to individuals who retire at age 65, regardless of Executive153s actual<br \/>\nage on the Termination Date, provided such lump sum value would be at least<br \/>\nequal to the lump sum value of the benefits which would have been payable if<br \/>\nExecutive had been eligible to retire and had retired immediately prior to the<br \/>\nChange in Control.<\/p>\n<p>(e) By not later than the fifth day following the Date of Termination, the<br \/>\nCompany shall pay Executive in a lump sum an amount equal to the sum of the<br \/>\npresent value of the fringe benefit programs, perquisites (if any), and similar<br \/>\narrangements the Executive would have been entitled to receive had the Executive<br \/>\ncontinued in employment with the Company for the Payment Period and been<br \/>\nentitled to or participated in the same such benefits during the Payment Period<br \/>\nas immediately prior to the Date of Termination. In addition and notwithstanding<br \/>\nany provision of the Company153s 2002 Equity Compensation Plan (or any comparable<br \/>\nequity award plan of the Company) or any applicable award agreement thereunder<br \/>\nto the contrary, Executive may exercise any of Executive153s stock options that<br \/>\nare vested as of Executive153s Date of Termination at any time during the Payment<br \/>\nPeriod (but not exceeding the original expiration date of the options).<\/p>\n<p>(f) The Company shall, in addition to the benefits to which Executive is<br \/>\nentitled under the retirement plans or programs sponsored by the Company or its<br \/>\naffiliates in which Executive participates (including without limitation any<br \/>\nSupplemental Executive Retirement Plan in which Executive participates, if<br \/>\napplicable), pay Executive in a lump sum in cash by no later than the fifth day<br \/>\nfollowing the Date of Termination an amount equal to the actuarial equivalent of<br \/>\nthe retirement pension to which Executive would have been entitled under the<br \/>\nterms of such retirement plans or programs had Executive accumulated additional<br \/>\nyears of continuous service under such plans equal in length to Executive153s<br \/>\nPayment Period. The length of the Payment Period will be added to total years of<br \/>\ncontinuous service for determining vesting, the amount of benefit accrual, to<br \/>\nthe age which Executive will be considered to be for the purposes of determining<br \/>\neligibility for normal or early retirement calculations and the age used for<br \/>\ndetermining the amount of any actuarial reduction. For the purposes of<br \/>\ncalculating the additional benefit accrual under this paragraph, the amount of<br \/>\ncompensation Executive will be deemed to have received during each month of<br \/>\nExecutive153s Payment Period shall be equal to the sum of Executive153s annual base<br \/>\nsalary prorated on a monthly basis as provided for under Section 4(a)<br \/>\nimmediately prior to the Date of Termination (including salary increases), plus<br \/>\nunder the Company153s Annual Performance Plan the greatest of one-twelfth of:<\/p>\n<p>(i) the amount most recently paid to Executive for a full calendar year,<\/p>\n<p>(ii) Executive153s &#8220;target incentive amount&#8221; for the calendar year in which<br \/>\nExecutive153s Date of Termination occurs, or<\/p>\n<p align=\"center\">8<\/p>\n<hr>\n<p>(iii) Executive153s &#8220;target incentive amount&#8221; in effect prior to the Change in<br \/>\nControl for the calendar year in which the Change in Control occurs. Attached as<br \/>\nExhibit 1 is an illustration, not intending to be exhaustive, of examples of how<br \/>\ninclusion of the Payment Period may affect the calculation of Executive153s<br \/>\nretirement benefit.<\/p>\n<p>(g) In no event shall any amount payable to Executive described in this<br \/>\nSection 5 be considered compensation or earnings under any pension, savings or<br \/>\nother retirement plan of the Company.<\/p>\n<p>6. <strong><u>Termination.<\/u><\/strong><\/p>\n<p>(a) <strong>Termination Without Compensation. <\/strong>If Executive153s<br \/>\nemployment is terminated for any of the following reasons, Executive shall not<br \/>\nbe entitled by virtue of this Agreement to any of the benefits provided in the<br \/>\nforegoing Section 5:<\/p>\n<p>(i) If, prior to the commencement of the Period of Employment, Executive153s<br \/>\nemployment with the Company is terminated at any time for any reason, including<br \/>\nwithout limitation due to (A) Executive153s death, (B) an Incapacity Discharge,<br \/>\n(C) a termination initiated by the Company with or without Cause or (D)<br \/>\nresignation, retirement or other termination initiated by Executive with or<br \/>\nwithout Good Reason, subject, however, to the provisions of Section 20 below.\n<\/p>\n<p>(ii) If Executive153s employment with the Company is terminated during the<br \/>\nPeriod of Employment with Cause.<\/p>\n<p>(iii) If Executive resigns, retires or otherwise voluntarily terminates<br \/>\nemployment with the Company during the Period of Employment without Good Reason.\n<\/p>\n<p>(b) <strong>Termination with Compensation. <\/strong>If Executive153s employment<br \/>\nis terminated for any of the following reasons, Executive shall be entitled by<br \/>\nvirtue of this Agreement to the benefits provided in the foregoing Section 5 as<br \/>\nfollows:<\/p>\n<p>(i) If, during the Period of Employment, the Company discharges Executive<br \/>\nother than for Cause, Executive shall receive all of the benefits and payments<br \/>\nprovided in Section 5.<\/p>\n<p>(ii) Executive may terminate his employment with the Company at any time<br \/>\nduring the Period of Employment for Good Reason (&#8220;Good Reason Termination&#8221;) and<br \/>\nshall receive all of the benefits and payments provided in Section 5.<\/p>\n<p>(iii) If, during the Period of Employment, Executive either (A) retires from<br \/>\nemployment with the Company or (B) if the Company discharges Executive due to an<br \/>\nIncapacity Discharge, in either case while Executive has cause to terminate his<br \/>\nemployment as a Good Reason Termination (whether or not Executive has provided<br \/>\nNotice of Termination to the Company pursuant to Section 7), Executive shall<br \/>\nreceive all of the benefits and payments provided in Section 5.<\/p>\n<p align=\"center\">9<\/p>\n<hr>\n<p>(iv) If Executive dies while employed by the Company during the Period of<br \/>\nEmployment while having cause to terminate his employment as a Good Reason<br \/>\nTermination (whether or not Executive has provided Notice of Termination to the<br \/>\nCompany pursuant to Section 7), Executive153s beneficiary or beneficiaries named<br \/>\non Exhibit 2 to this Agreement (or Executive153s estate if he has not named a<br \/>\nbeneficiary) shall be entitled to receive those payments provided under Sections<br \/>\n5(a), 5(b) and 5(c) of this Agreement in addition to any benefits that such<br \/>\nbeneficiaries would be entitled under any other plan, program or policy of the<br \/>\nCompany as a result of Executive153s employment with the Company.<\/p>\n<p>(v) Executive may become eligible for the benefits and payments under Section<br \/>\n5 for termination of employment prior to a Change in Control in accordance with,<br \/>\nand subject to, the provisions of Section 20 below.<\/p>\n<p>7. <strong><u>Notice of Termination.<\/u> <\/strong>Any termination of<br \/>\nExecutive153s employment by the Company or any termination by Executive as a Good<br \/>\nReason Termination shall be communicated by written notice to the other party<br \/>\nhereto. For purposes of this Agreement, such notice shall be referred to as a<br \/>\n&#8220;Notice of Termination.&#8221; Such notice shall, to the extent applicable, set forth<br \/>\nthe specific reason for termination, and shall set forth in reasonable detail<br \/>\nthe facts and circumstances claimed to provide a basis for termination of<br \/>\nExecutive153s employment under the provision so indicated.<\/p>\n<p>8. <strong><u>Date of Termination.<\/u> <\/strong>&#8220;Date of Termination&#8221; shall<br \/>\nmean:<\/p>\n<p>(a) If Executive terminates Executive153s employment as a Good Reason<br \/>\nTermination, the date specified in the Notice of Termination, but in no event<br \/>\nmore than sixty (60) days after Notice of Termination is given.<\/p>\n<p>(b) If Executive153s employment is terminated with Cause, the date on which a<br \/>\nNotice of Termination is given, except that the Date of Termination shall not be<br \/>\nany date prior to the date on which the Cure Period expires without the<br \/>\ncorrection of Executive153s performance (if applicable).<\/p>\n<p>(c) If Executive153s employment pursuant to this Agreement is terminated<br \/>\nfollowing absence due to physical incapacity as an Incapacity Discharge, then<br \/>\nthe Date of Termination shall be thirty (30) days after Notice of Termination is<br \/>\ngiven (provided that Executive shall not have returned to the performance of<br \/>\nExecutive153s duties on a full-time basis during such thirty (30) day period).\n<\/p>\n<p>(d) A termination of employment by either the Company or by Executive shall<br \/>\nnot affect any rights Executive or Executive153s surviving spouse or beneficiaries<br \/>\nmay have pursuant to any other agreement or plan of the Company providing<br \/>\nbenefits to Executive, except as provided in such agreement or plan.<\/p>\n<p align=\"center\">10<\/p>\n<hr>\n<p>9. <strong><u>Adjustments to Payments.<\/u> <\/strong><\/p>\n<p>(a) Anything in this Agreement to the contrary notwithstanding, in the event<br \/>\nit shall be determined that any payment or distribution by the Company to<br \/>\nExecutive or for Executive153s benefit (whether paid or payable or distributed or<br \/>\ndistributable pursuant to the terms of this Agreement or otherwise (the<br \/>\n&#8220;Payments&#8221;) would be subject to the excise tax imposed by Section 4999 (or any<br \/>\nsuccessor provisions) of the Internal Revenue Code of 1986, as amended (the<br \/>\n&#8220;Code&#8221;), or any interest or penalty is incurred by Executive with respect to<br \/>\nsuch excise tax (such excise tax, together with any such interest and penalties,<br \/>\nis hereinafter collectively referred to as the &#8220;Excise Tax&#8221;), then the Payments<br \/>\nshall be reduced (but not below zero) if and to the extent that such reduction<br \/>\nwould result in Executive retaining a larger amount, on an after-tax basis<br \/>\n(taking into account federal, state and local income taxes and the imposition of<br \/>\nthe Excise Tax), than if Executive received all of the Payments. The Company<br \/>\nshall reduce or eliminate the Payments, by first reducing or eliminating the<br \/>\nportion of the Payments which are not payable in cash and then by reducing or<br \/>\neliminating cash payments, in each case in reverse order beginning with payments<br \/>\nor benefits which are to be paid the farthest in time from the determination.\n<\/p>\n<p>(b) All determinations required to be made under this Section 9, including<br \/>\nwhether and when an adjustment to any Payments is required and, if applicable,<br \/>\nwhich Payments are to be so adjusted, shall be made by PricewaterhouseCoopers<br \/>\nLLC (or their successors) (the &#8220;Accounting Firm&#8221;) which shall provide detailed<br \/>\nsupporting calculations both to the Company and to Executive within fifteen (15)<br \/>\nbusiness days of the receipt of notice from Executive that there has been a<br \/>\nPayment, or such earlier time as is requested by the Company. In the event that<br \/>\nthe Accounting Firm is serving as accountant or auditor for the individual,<br \/>\nentity or group effecting the Change in Control, Executive shall appoint another<br \/>\nnationally recognized accounting firm to make the determinations required<br \/>\nhereunder (which accounting firm shall then be referred to as the Accounting<br \/>\nFirm hereunder). All fees and expenses of the Accounting Firm shall be borne<br \/>\nsolely by the Company. If the Accounting Firm determines that no Excise Tax is<br \/>\npayable by Executive, it shall furnish Executive with a written opinion that<br \/>\nfailure to report the Excise Tax on Executive153s applicable federal income tax<br \/>\nreturn would not result in the imposition of a negligence or similar penalty.<br \/>\nAny determination by the Accounting Firm shall be binding upon the Company and<br \/>\nExecutive.<\/p>\n<p>10. <strong><u>No Obligation to Mitigate Damages, No Effect on Other<br \/>\nContractual Rights.<\/u><\/strong> Executive shall not be required to refund the<br \/>\namount of any payment or employee benefit provided for or otherwise mitigate<br \/>\ndamages under this Agreement by seeking or accepting other employment or<br \/>\notherwise, nor shall the amount of any payment required to be made under this<br \/>\nAgreement be reduced by any compensation earned by Executive as the result of<br \/>\nany employment by another employer after the date of termination of Executive153s<br \/>\nemployment with the Company, or otherwise. Upon receipt of written notice from<br \/>\nExecutive that Executive has been reemployed by another company or entity on a<br \/>\nfull-time basis, benefits, fringe benefits and perquisites otherwise receivable<br \/>\nby Executive pursuant to Sections 5(d) or 5(e) related to life, health,<br \/>\ndisability and accident insurance plans and programs and other similar benefits,<br \/>\ncompany cars, financial planning, country club memberships, and the like (but<br \/>\nnot incentive compensation, LTIP, pension plans or other similar plans and<br \/>\nprograms) shall be reduced to the extent comparable benefits are made available<br \/>\nto Executive at his new employment and any such benefits actually received by<br \/>\nExecutive shall be reported to the Company by Executive.<\/p>\n<p align=\"center\">11<\/p>\n<hr>\n<p>The provisions of the Agreement, and any payment or benefit provided for<br \/>\nhereunder shall not reduce any amount otherwise payable, or in any way diminish<br \/>\nExecutive153s existing rights, or rights which would occur solely as a result of<br \/>\nthe passage of time, under any other agreement, contract, plan or arrangement<br \/>\nwith the Company.<\/p>\n<p>11. <strong><u>Successors and Binding Agreement.<\/u><\/strong><\/p>\n<p>(a) The Company shall require any successor (whether direct or indirect, by<br \/>\npurchase, merger, consolidation or otherwise) to all or substantially all of the<br \/>\nbusiness or assets of the Company, by agreement in form and substance<br \/>\nsatisfactory to Executive, to assume and agree to perform this Agreement.<\/p>\n<p>(b) This Agreement shall be binding upon the Company and any successor of or<br \/>\nto the Company, including, without limitation, any person acquiring directly or<br \/>\nindirectly all or substantially all of the assets of the Company whether by<br \/>\nmerger, consolidation, sale or otherwise (and such successor shall thereafter be<br \/>\ndeemed the &#8220;Company&#8221; for the purposes of this Agreement), but shall not<br \/>\notherwise be assignable by the Company.<\/p>\n<p>(c) This Agreement shall inure to the benefit of and be enforceable by<br \/>\nExecutive and Executive153s personal or legal representatives, executors,<br \/>\nadministrators, successors, heirs, distributees, devisees and legatees. If<br \/>\nExecutive should die while any amounts would still be payable to Executive<br \/>\npursuant to Sections 5 and 6 hereunder if Executive had continued to live, all<br \/>\nsuch amounts, unless otherwise provided herein, shall be paid in accordance with<br \/>\nthe terms of this Agreement to Executive153s devisee, legatee, or other designee<br \/>\nor, if there be no such designee, to Executive153s estate.<\/p>\n<p>12. <strong><u>Notices.<\/u> <\/strong>For the purposes of this Agreement,<br \/>\nnotices and all other communications provided for in the Agreement shall be in<br \/>\nwriting and shall be deemed to have been duly given when delivered or mailed by<br \/>\nUnited States registered mail, return receipt requested, postage prepaid,<br \/>\naddressed to the respective addresses set forth on the first page of this<br \/>\nAgreement, provided that all notices to the Company shall be directed to the<br \/>\nattention of the Chief Executive Officer of the Company with a copy to the<br \/>\nSecretary of the Company, or to such other address as either party may have<br \/>\nfurnished to the other in writing, except that notices of change of address<br \/>\nshall be effective only upon receipt.<\/p>\n<p>13. <strong><u>Governing Law.<\/u><\/strong> The validity, interpretation,<br \/>\nconstruction and performance of this Agreement shall be governed by the laws of<br \/>\nthe State of North Carolina, without giving effect to the principles of conflict<br \/>\nof laws of such State.<\/p>\n<p>14. <strong><u>Miscellaneous.<\/u><\/strong> No provisions of this Agreement<br \/>\nmay be modified, waived or discharged, and this Agreement may not be terminated<br \/>\nbefore the end of the Term, unless such waiver, modification, discharge or<br \/>\ntermination is agreed to in a writing signed by Executive and the Company. No<br \/>\nwaiver by either party hereto at any time of any breach by the other party<br \/>\nhereto or compliance with, any condition or provision of this Agreement to be<br \/>\nperformed by such other party shall be deemed a waiver of similar or dissimilar<br \/>\nprovisions or conditions at the same<\/p>\n<p align=\"center\">12<\/p>\n<hr>\n<p>or at any prior or subsequent time. No agreements or representations, oral or<br \/>\notherwise, express or implied, with respect to the subject matter hereof, have<br \/>\nbeen made by either party which is not set forth expressly in this Agreement.\n<\/p>\n<p>15. <strong><u>Validity.<\/u><\/strong> The invalidity or unenforceability of<br \/>\nany provisions of this Agreement shall not affect the validity or enforceability<br \/>\nof any other provision of this Agreement, which shall remain in full force and<br \/>\neffect.<\/p>\n<p>16. <strong><u>Counterparts.<\/u><\/strong> This Agreement may be executed in<br \/>\none or more counterparts, each of which shall be deemed to be an original, but<br \/>\nall of which together will constitute one and the same agreement.<\/p>\n<p>17. <strong><u>Withholding of Taxes.<\/u><\/strong> The Company may withhold<br \/>\nfrom any amounts payable under this Agreement all federal, state, city or other<br \/>\ntaxes as shall be required pursuant to any law or government regulation or<br \/>\nruling.<\/p>\n<p>18. <strong><u>Nonassignability.<\/u><\/strong> This Agreement is personal in<br \/>\nnature and neither of the parties hereto shall, without the consent of the<br \/>\nother, assign or transfer this Agreement or any rights or obligations hereunder,<br \/>\nexcept as provided in Section 11 above. Without limiting the foregoing,<br \/>\nExecutive153s right to receive payments hereunder shall not be assignable or<br \/>\ntransferable, whether by pledge, creation of a security interest or otherwise,<br \/>\nother than by a transfer by Executive153s will or by the laws of descent and<br \/>\ndistribution and in the event of any attempted assignment or transfer contrary<br \/>\nto this Section 18 the Company shall have no liability to pay any amounts so<br \/>\nattempted to be assigned or transferred.<\/p>\n<p>19. <strong><u>Legal Fees and Expenses.<\/u><\/strong> If a Change in Control<br \/>\nshall have occurred, thereafter the Company shall pay and be solely responsible<br \/>\nfor any and all attorneys153 and related fees and expenses incurred by Executive<br \/>\nto successfully (in whole or in part and whether by modification of the<br \/>\nCompany153s position, agreement, compromise, settlement, or administrative or<br \/>\njudicial determination) enforce this Agreement or any provision hereof or as a<br \/>\nresult of the Company or any Shareholder of the Company contesting the validity<br \/>\nor enforceability of this Agreement or any provision hereof. To secure the<br \/>\nforegoing obligation, the Company shall, within 90 days after being requested by<br \/>\nExecutive to do so, enter into a contract with an insurance company, open a<br \/>\nletter of credit or establish an escrow in a form satisfactory to Executive.<br \/>\nNotwithstanding the provisions of this Section 19 to the contrary, in no event<br \/>\nshall any payments made to Executive under this Section 19 be made for expenses<br \/>\nincurred by Executive following the end of the second calendar year following<br \/>\nthe calendar year in which Executive153s Date of Termination occurs, provided that<br \/>\nthe period during which reimbursement for such expenses may be made may extend<br \/>\nto the end of the third calendar year in which Executive153s Date of Termination<br \/>\noccurs.<\/p>\n<p>20. <strong><u>Employment Rights.<\/u><\/strong> Nothing expressed or implied<br \/>\nin this Agreement shall create any right or duty on Executive153s part or on the<br \/>\npart of the Company to have Executive remain in the employment of the Company<br \/>\nprior to the commencement of the Period of Employment; provided, however, that<br \/>\nany termination or purported termination of Executive153s employment by the<br \/>\nCompany without Cause, or termination of Executive153s employment by Executive<br \/>\nunder circumstances that would constitute Good Reason had a Change in Control<br \/>\noccurred, in either case following the commencement of any discussion with a<br \/>\nthird party, or the announcement by a third party of the commencement of, or the<br \/>\nintention to commence a tender<\/p>\n<p align=\"center\">13<\/p>\n<hr>\n<p>offer, or other intention to acquire all or a portion of the equity<br \/>\nsecurities of the Company that ultimately results in a Change in Control shall<br \/>\nbe deemed to be a termination of Executive153s employment after a Change in<br \/>\nControl for purposes of (i) this Agreement and both the Period of Employment and<br \/>\nthe Payment Period shall be deemed to have begun on the day prior to such<br \/>\ntermination and (ii) the Company153s Equity Compensation Plan as if the Change in<br \/>\nControl had occurred on the day prior to such termination (resulting in the full<br \/>\nvesting and extended exercisability of the Executive153s outstanding stock options<br \/>\nunder, and in accordance with, the provisions of the Equity Compensation Plan).\n<\/p>\n<p>21. <strong><u>Right of Setoff.<\/u><\/strong> There shall be no right of<br \/>\nsetoff or counterclaim against, or delay in, any payment by the Company to<br \/>\nExecutive or Executive153s designated beneficiary or beneficiaries provided for in<br \/>\nthis Agreement in respect of any claim against Executive or any debt or<br \/>\nobligation owed by Executive, whether arising hereunder or otherwise.<\/p>\n<p>22. <strong><u>Rights to Other Benefits.<\/u><\/strong> The existence of the<br \/>\nAgreement and Executive153s rights hereunder shall be in addition to, and not in<br \/>\nlieu of, Executive153s rights under any other of the Company153s compensation and<br \/>\nbenefit plans and programs, and under any other contract or agreement between<br \/>\nExecutive and the Company.<\/p>\n<p>23. <strong><u>Prior Agreements.<\/u><\/strong> This Agreement supersedes and<br \/>\nreplaces any and all prior agreements and understandings between the Company and<br \/>\nthe Executive with respect to the subject matter hereof. Any such prior<br \/>\nagreements and understandings are no longer in force or effect.<\/p>\n<p>24. <strong><u>Compliance with Section 409A of the Internal Revenue Code.<\/u><br \/>\n<\/strong>Any payments under this Agreement that are deemed to be deferred<br \/>\ncompensation subject to the requirements of Section 409A (&#8220;Section 409A&#8221;) of the<br \/>\nInternal Revenue Code of 1986, as amended, are intended to comply with the<br \/>\nrequirements of Section 409A. To this end and notwithstanding any other<br \/>\nprovision of this Agreement to the contrary, if at the time of Executive153s<br \/>\ntermination of employment with the Company, (i) the Company153s securities are<br \/>\npublicly traded on an established securities market; (ii) Executive is a<br \/>\n&#8220;specified employee&#8221; (as defined in Section 409A); and (iii) the deferral of the<br \/>\ncommencement of any payments or benefits otherwise payable pursuant to this<br \/>\nAgreement as a result of such termination of employment is necessary in order to<br \/>\nprevent any accelerated or additional tax under Section 409A, then the Company<br \/>\nwill defer the commencement of such payments (without any reduction in amount<br \/>\nultimately paid or provided to Executive) that are not paid within the<br \/>\nshort-term deferral rule under Section 409A (and any regulations thereunder) or<br \/>\nwithin the &#8220;involuntary separation&#8221; exemption of Treasury Regulation  \u00a7<br \/>\n1.409A-1(b)(9)(iii). Such deferral shall last until the date that is six (6)<br \/>\nmonths following Executive153s termination of employment with the Company (or the<br \/>\nearliest date as is permitted under Section 409A). Any amounts the payment of<br \/>\nwhich are so deferred shall be paid in a lump sum payment within ten (10) days<br \/>\nafter the end of such deferral period. If Executive dies during the deferral<br \/>\nperiod prior to the payment of any deferred amount, then the unpaid deferred<br \/>\namount shall be paid to the personal representative of Executive153s estate within<br \/>\nsixty (60) days after the date of Executive153s death. For purposes of Section<br \/>\n409A, the right to a series of installment payments under this Agreement shall<br \/>\nbe treated as a right to a series of separate payments.<\/p>\n<p align=\"center\">14<\/p>\n<hr>\n<p>IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the<br \/>\nEffective Date.<\/p>\n<table style=\"width: 40%; border-collapse: collapse;\" width=\"40%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"6%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"12%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"80%\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\" valign=\"bottom\">\n<p><strong>ENPRO INDUSTRIES, INC.<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>By:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"bottom\">\n<p>\/s\/ Stephen E. Macadam<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Name:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Stephen E. Macadam<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Title:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>President and Chief Executive Officer<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"bottom\">\n<p>\/s\/ Marvin A. Riley<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"bottom\">\n<p><strong>Marvin A. Riley<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">15<\/p>\n<hr>\n<p align=\"center\"><strong>EXHIBIT 1 <\/strong><\/p>\n<p>A. If as of Executive153s Date of Termination Executive153s years of continuous<br \/>\nservice under the applicable retirement plans for purposes of determining<br \/>\neligibility for normal or early retirement plus the length of Executive153s<br \/>\nPayment Period is at least 5, then<\/p>\n<p>1. If as of Executive153s Date of Termination Executive153s age plus the length<br \/>\nof Executive153s Payment Period is at least 65, Executive153s retirement benefit<br \/>\nunder Section 5(f) will be calculated as a &#8220;normal retirement&#8221; benefit to which<br \/>\nExecutive would have been entitled under the terms of the retirement plan in<br \/>\nwhich Executive participates had Executive accumulated benefit service under the<br \/>\nretirement plan that included the Payment Period; and<\/p>\n<p>2. If as of Executive153s Date of Termination Executive153s age plus the length<br \/>\nof Executive153s Payment Period is at least 55 but less than 65, Executive153s<br \/>\nretirement benefit under Section 5(f) will be calculated as an &#8220;early<br \/>\nretirement&#8221; benefit to which Executive would have been entitled under the terms<br \/>\nof the retirement plan in which Executive participates had Executive accumulated<br \/>\nbenefit service under the retirement plan that included the Payment Period. The<br \/>\nactuarial reduction used shall be the actuarial reduction factor for early<br \/>\nretirement, calculated to Executive153s actual age plus the length of Executive153s<br \/>\nPayment Period, at Executive153s Date of Termination.<\/p>\n<p>B. If as of Executive153s Date of Termination the sum of Executive153s years of<br \/>\ncontinuous service under the applicable retirement plans for purposes of<br \/>\ndetermining eligibility for normal or early retirement plus the length of<br \/>\nExecutive153s Payment Period is less than 5, or Executive153s age plus the length of<br \/>\nExecutive153s Payment Period is less than 55, Executive153s retirement benefit under<br \/>\nSection 5(f) will be calculated as a &#8220;deferred vested pension&#8221; to which<br \/>\nExecutive would have been entitled under the terms of the retirement plans in<br \/>\nwhich Executive participates had Executive accumulated benefit service under the<br \/>\nretirement plan that included the Payment Period. The actuarial reduction used<br \/>\nshall be the actuarial reduction factor for a deferred vested pension,<br \/>\ncalculated to Executive153s actual age at Executive153s Date of Termination plus the<br \/>\nlength of Executive153s Payment Period.<\/p>\n<p>C. For purposes of Section 5(f), &#8220;actuarial equivalent&#8221; shall be determined<br \/>\nusing the same methods and assumptions as those utilized under the Company153s<br \/>\nretirement plans and programs immediately prior to the Change in Control.<\/p>\n<hr>\n<p align=\"center\"><strong>EXHIBIT 2 <\/strong><\/p>\n<p align=\"center\"><strong>BENEFICIARY DESIGNATION <\/strong><\/p>\n<p>I hereby designate the following person(s) as a beneficiary for the purposes<br \/>\nof Section 6(b)(iv) to the extent of the percentage interest listed next to<br \/>\ntheir name:<\/p>\n<table style=\"width: 35%; border-collapse: collapse;\" width=\"35%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"51%\"><\/td>\n<td width=\"3%\" valign=\"bottom\"><\/td>\n<td width=\"46%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p>NAME<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"center\">PERCENTAGE INTEREST<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" valign=\"top\">\n<p>TOTAL (CANNOT EXCEED 100%)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7453],"corporate_contracts_industries":[9459],"corporate_contracts_types":[9539,9551],"class_list":["post-40102","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-enpro-industries-inc","corporate_contracts_industries-manufacturing__rubber","corporate_contracts_types-compensation","corporate_contracts_types-compensation__severance"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/40102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=40102"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40102"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40102"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}