1
Exhibit 10.1(x)
Post-retirement care agreement
In the employment contract of 24 April 1986 between Xxxxx Getriebe AG and Xx.
Xxxxx Xxxxxxx it was anticipated in ss. 6.3 of the contract that Xx. Xxxxxxx
would receive post-retirement support. Accordingly, the operator of the business
of Xxxxx Getriebe AG, Xxxxx-Sundstrand GmbH & Co. did, on 11 June 1987, make
such an agreement.
The supervisory authority of the sole shareholder of Xxxxx-Sundstrand GmbH & Co,
Xxxxx Inc. with seat in Ames, Iowa, which is responsible, is the Compensation
Committee which is a sub-committee of the Board of Directors of Xxxxx Inc. On
the recommendation of the Compensation Committee, the Board of Directors, in a
meeting on 19 April 1989, re-confirmed the validity of the previous agreement
and authorized the responsible officers of Xxxxx Inc. to undertake all steps
necessary to put this post-retirement agreement into effect.
The post-retirement agreement is hereby, as part of the contract extension of
the employment contract of Xx. Xxxxxxx for Xxxxx Inc., adapted and clarified.
--------------
Xxxxx-Sundstrand GmbH & Co hereby pledges itself to accord the attached
agreement for support of Xx. Xxxxx Xxxxxxx, born 2 August 1951.
There is unanimous agreement that this agreement is subject to the laws of the
Federal Republic of Germany.
Xx. Xxxxxxx has been informed that this agreement has no security from the
possibility of insolvency as the emphasis of the employment of relationship,
upon which this agreement is based, does not lie in the German Federal Republic.
In addition the employer of Xx. Xxxxxxx has its seat of business abroad.
19 September 1996
Xxxxx-Sundstrand GmbH & Co
(signed Xx. Xxxxx Xxxxxxx)
I assent to the contents of this agreement
(signed Xx. Xxxxx Xxxxxxx)
2
Xxxxx Sundstrand GmbH & Co
Post-retirement Agreement
List of contents
I Modes of execution
II Fixed retirement limit
III Prerequisites for pension payment
IV Prerequisites for survivor pension
V Amount of the pension payment
VI Amount of the survivor pension
VII Payment of the occupational pension
VIII Security of the occupational pension
IX Duties of claimants
X Non-Forfeitability
XI Allowance for alternative pension systems
XII Reservation clause
3
Xx. Xxxxx Xxxxxxx
Xx Xxxxxxxxxx 00
00000 Xxxxxxx
On behalf of Xxxxx Inc., Ames, Iowa/USA, Xxxxx-Sundstrand GmbH & Co., hereby
makes with you the following
Post-retirement Agreement
I. Modes of execution
1. The awarded modes of execution of the business pension scheme (in the
following referred to as "occupational pension") include
Pension as old age pension or disability pension
as well as
Survivors pension as widows pension or orphans pension
2. The occupational pension, is earned with the fulfillment of the
requirements (III, IV).
II. Fixed retirement limit
You will have reached the fixed retirement limit on the completion of the
60th year (of your life).
III. Prerequisites for pension payments
1. You earn a claim to old-age pension when your service relationship with
Xxxxx Inc. or another group company reaches or surpasses the fixed
retirement limit.
2a. You earn a claim for disability pension when your service relationship
with Xxxxx Inc. or another group company ends and you are at this time
disabled. In the context of this post-retirement agreement, disabled means
either incapable of gainful employment or vocational disability. This must
be proved by reference to a registered doctor's certificate.
2b. The claim to disability pension will not be earned if the disability is
self-inflicted.
4
IV. Prerequisites for survivors pension
1a. The claim for widow's pension is gained by your surviving spouse (on your
death as heir in expectancy) whilst your service relationship with Xxxxx
Inc. or another group company exists. An additional prerequisite is that
you have entered into the marriage before completion of your 60th year and
that a provable marriage has existed for at least one year.
1b. The claim for orphan's pension is gained by your surviving child (as heir
in expectancy) on your death.
2a. The claim to widow's pension is gained by your surviving spouse (on your
death as pension recipient) when you yourself have claim to old age
pension at the time of your death. Additional prerequisites are you have
entered into the marriage before completion of your 60th year and that
this was before gaining your claim to old age pension (II).
2b. The claim to orphan's pension is also gained (on your death as pension
recipient) by your surviving child.
3 No claim to widow's pension is gained on death by suicide.
4a. Claimants to orphan pension are your legitimate, legitimated, adopted and
illegitimate children. An illegitimate child is only recognized as a
claimant if your paternity has been recognized by yourself or by court
process (xx.xx. 1600 et seq. of the German Civil Code).
4b. A further prerequisite for claimants to orphan pension is that the child
has not yet completed its 18th year. A claimant is still recognized,
however, after completion of its 18th year when it can be proven that
School or professional education is being pursued, or for National Service
or alternative Civil Service periods. These periods are acceptable until
completion of the 27th year.
V Amount of the pension payments
1. The old age pension amounts to 60% of your last years fixed annual salary
(gross salary) in accordance with 3a. of your contract of 19 September
1996 with Xxxxx Inc., Ames, Iowa/USA.
5
2. The disability pension is calculated with reference to the old-age pension
of paragraph 1 above in which for each year lying between the point of
your claim to disability pension (III. 2) and the completion of your 60th
year is reduced by 3 1/3% (of the pension) (that is 2 percentage points of
the percentage rate mentioned under 1 (i.e. the gross salary)).
In this the missing years will be rounded; a period of 6 months or less
will not be recognized, whilst a period of more than 6 months will be
counted as a full year.
3a. Against the pension the following will be offset:
(1) Payments made from the statutory or possibly the additional voluntary
accident insurance scheme, to the extent that the company has participated
through its contributions; by one-off payments of the insurer, the pension
contribution will be the basis of this payment.
(2) Payments from the statutory pension scheme for employees, to the extent
that this is based on contributions which the company has made.
(3) To the extent that you have entered into a life insurance contract through
exemption from the statutory employee insurance scheme, and the company
has given supplementary payments to these insurance premiums, the amount
which will be offset is the amount which would have been offset in
accordance with V. 3a (2) when this supplement would have been made as
employer contribution to the statutory pension scheme.
(4) Possibly payments which, in the opinion of the company, relate to a duty
before the attainment of the fixed retirement limit.
In the case of (2) and (3) the amount offset in the first pension
calculation will not be amended by later amendments to the statutory
old-age pension as a result of index-linking.
3b. Limitation of the amount of the pension payment
If the monthly total of the pension payments from accident or pension
insurance (excluding any child supplements) together with the pension
granted by this contract exceeds 65% of the last (relevant) fixed monthly
salary, then the excess amount will be offset from the pension.
6
VI Amount of the survivor pension
1. The measurement base for survivors pension is the pension according to V.
2. The widow's pension amounts to 60% of the measurement base in 1. However,
should your widow be more than 15 years younger than you, then the widow's
pension will be curtailed by 1/15 of its amount for each full year of age
difference in excess of the 15 years.
3. The orphan's pension amounts to
- 10% for each fatherless child and
- 20% for each orphan
of the measurement base according to 1. The total of all survivor
pensions, however, may not exceed 100%, that is the orphan's pension
additional to the widow's pension, may not exceed 40% of the measurement
base. In the case of an excess, the orphan's pensions will each be
appropriately curtailed.
VII Payment of the occupational pension
1. The occupational pension will be paid in equal monthly installments, after
deduction of all taxes, at the end of the month. The first payment will
follow in the month in which the claim is due (III, IV).
2. The claim to occupational pension is suspended until the end of the month
for which payments from your service relationship with Xxxxx Inc. or
another group company are earned.
3. All occupational pensions will be paid for the rest of your life, however
they end
- the claim to disability pension - with the cessation of the disability
- the claim for widow's pension - with the remarriage of your surviving
spouse
- the claim for orphan's pension - with the cessation of the prerequisites
(for qualification) as orphan (IV.4)
7
4. The occupational pension will be paid for the last time for the month in
which the claim ceases. The revival of claims to pensions (with the
exception of the regulation in III. 3) or widow's pension is not
permitted.
VIII Security of the occupational pension
1. The continuity of the occupational pension and the statutory
non-forfeitability and preservation of the qualifying status should be
secured against the consequences of a possible insolvency of the company
through the pledge of reinsurance.
Only the company is allowed and obliged to conclude a reinsurance of the
occupational pension by means of a contract with an insurance company.
2. You are obliged to give the necessary agreement to the conclusion of an
insurance contract. You must give the information requested by the
insurance company and to undertake the necessary medical examinations. The
failure to participate in the conclusion of the insurance contract will
result in the loss of the corresponding guarantee.
IX Duties of the claimants
1a. Whomsoever obtains a claim of the occupational pension (claimant) is
obliged to make known to the company, in a timely manner and without
receiving a request to do so the following information
changes in the personal and family situation
changes of name, address and postal address
1b. On request of the company a claimant must deliver a birth certificate (or
other evidence).
1c. The claimant is obliged to inform the company in a timely manner and
without receiving a request to do so, and, if requested prove, the
following
- the cessation of old age pension from the statutory pension scheme
- the cessation of disability
- the cessation of orphan's rights (IV.4)
- the payment and amount of income and service which could lead to a
curtailment or suspension of the occupational pension
8
1d. The claimant must, each year, give the company a tax deduction certificate
(Lohnsteuerkarte).
2. The claim to occupational pension may not be assigned, pledged or loaned
on security. Agreements with third parties of this nature are
non-operative against the company.
3. Compensation claims against persons whose actions have resulted in an
occupational pension being claimed are obliged to be assigned to the
company to the extent of the occupational pension.
4. By contravention of these duties the claim on the occupational pension is
suspended.
X Non-Forfeitability
1. This pension agreement does not restrict the right to termination of the
service contract.
2a. If the service relationship with Xxxxx Inc. or another group company has
ended without a claim under the pension agreement being granted, the
qualifying status for occupational pensions (Gesetz zur Verbeserung der
betrieblichen Altersversorgung) is preserved in the prescribed extent.
2b. However, should the service relationship not be continued until the
completion of your 60th year for reasons which you are not responsible
for, the qualifying status for occupational pension is preserved in full.
2c. The payment amount for the qualifying scheme as set in (b) will be
curtailed by all amounts of pension earnings gained after the termination
of the service relationship with the company. For this purpose all other
modes of execution (for example capital payments) will be converted into
their pension equivalent. Capital amounts will be actuarially re-based
using calculation bases and interest rates as used for the last evaluation
of the pension obligations in the tax accounts (of the company).
3. As owner of the preserved qualifying status you will be informed of the
amount which you are entitled to receive as old-age pension.
9
4. The registration and preservation of proof obligations in accordance with
IX. 1a and b should continue to be fulfilled during the period after the
termination of the service relationship. A claim to occupational pension
must be registered on a timely basis.
XI Allowance for alternative pension systems
Should the company, through law, industry-wide employment agreement or from
other source, be obliged to make pension arrangements or other payments for
similar purposes, so will these other payments be curtailed against the
occupational pension. The curtailment arrangements will then be appropriately
regulated.
XII Reservation Clause
The company reserves the right to change the pension arrangements or to curtail
or to terminate the occupational pension if you undertake actions of gross
misconduct or which would allow for an instant dismissal.
Neumunster 19 September 1996
(signed Xx. Xxxxx Xxxxxxx)
