Square D Company and Subsidiaries - Page 51

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          or before December 31, 1992 (instead of February 1995).  Under              
          the 1992 Amendments, the Retention Payment payable at yearend               
          1992 was computed as the portion of the Retention Payment that a            
          Retained Executive would have received under the 1991 Employment            
          Agreement if he had terminated his employment for “good reason”,            
          or if petitioner had terminated his employment without “cause”,             
          on December 31, 1992.  In addition, the 1992 Amendments contained           
          a “clawback” clause, which provided that if a Retained                      
          Executive’s employment was terminated by petitioner for “cause”             
          or by the Retained Executive for other than “good reason” prior             
          to December 31, 1995, the executive was obligated to repay the              
          entire Retention Payment that he had received in 1992, plus                 
          interest.  Finally, the 1992 Amendments provided that petitioner            
          would pay the 1991 SRP Benefit plus interest, as provided in the            
          1991 Employment Agreements, on or before December 31, 1992.  No             
          “clawback” clause or comparable provision applied to the 1991 SRP           
          Benefit paid under the 1992 Amendments, in the event a Retained             
          Executive’s employment ceased prior to the expiration of the                
          employment period on December 31, 1995.                                     
               Pursuant to the 1991 Employment Agreements, as amended by              
          the 1992 Amendments, petitioner paid Retention Payments and 1991            
          SRP Benefits (including interest) to the Retained Executives in             
          December 1992 as follows:                                                   







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