Common use of Establishing Allegion Deferred Compensation Plans Clause in Contracts

Establishing Allegion Deferred Compensation Plans. Except as otherwise set forth on Schedule 8.1(a), as of the Transferred Group Adoption Date, Schlage Lock Company LLC, a Transferred Group Entity, shall have established and adopted deferred compensation plans for its key employees (collectively, the “Allegion Deferred Compensation Plans”) to provide each Allegion Group Employee or Former Allegion Group Employee who was a participant in the IR Deferred Compensation Plans as of immediately prior to the Effective Time (each, an “Allegion Deferred Compensation Plan Beneficiary”) benefits in respect of service and compensation following the Effective Time substantially similar to those accrued with respect to such person under the IR Deferred Compensation Plans as of immediately prior to the Effective Time. Effective as of the Effective Time, either Schlage Lock Company LLC shall remain the plan sponsor of the Allegion Deferred Compensation Plans or Allegion shall or shall cause another Allegion Entity to assume the Allegion Deferred Compensation Plans. As of the Effective Time, the Allegion Group Employees and Former Allegion Group Employees shall no longer participate in the IR Deferred Compensation Plans. The Parties agree that for purposes of the IR Deferred Compensation Plans, an Allegion Deferred Compensation Plan Beneficiary shall not be considered to have incurred a separation of service as determined under the general rules of Section 409A of the Code as a result of the Distribution or the transfer of employment or service from IR (or an IR Entity) to Allegion (or an Allegion Entity), and such employment or service shall only be considered to terminate for purposes of the Allegion Deferred Compensation Plans when the employment or service of such Allegion Deferred Compensation Plan Beneficiary with the Allegion Group terminates in accordance with the terms of the Allegion Deferred Compensation Plans and applicable Laws.