Document:

Exhibit
10.6

 

CDRV
INVESTORS, INC. 

STOCK INCENTIVE PLAN

 

Article I

Purpose

 

CDRV Investors, Inc. has
established this stock incentive plan to foster and promote its long-term
financial success.  Capitalized terms have the meaning given in Article
XI.

 

Article II

Powers of the Board

 

Section 2.1                           
Power to Grant
Awards.  The
Board shall select Employees to participate in the Plan.  The Board shall
also determine from time to time whether, and the terms under which, Eligible
Directors (or classes or categories of Eligible Directors) may receive Director
Share Awards.  The Board shall determine the terms of each Award,
consistent with the Plan.

 

Section 2.2                           
Administration.  The Board shall be responsible
for the administration of the Plan.  The Board may prescribe, amend and
rescind rules and regulations relating to the administration of the Plan,
provide for conditions and assurances it deems necessary or advisable to
protect the interests of the Company and make all other determinations
necessary or advisable for the administration and interpretation of the
Plan.  Any authority exercised by the Board under the Plan shall be
exercised by the Board in its sole discretion.  Determinations, interpretations
or other actions made or taken by the Board under the Plan shall be final,
binding and conclusive for all purposes and upon all persons.

 

Section 2.3                           
Delegation by the
Board.  All
of the powers, duties and responsibilities of the Board specified in this Plan
may be exercised and performed by any duly constituted committee thereof to the
extent authorized by the Board to exercise and perform such powers, duties and
responsibilities, and any determination, interpretation or other action taken
by such committee shall have the same effect hereunder as if made or taken by
the Board.

 

 

Article III

Shares Subject to Plan

 

Section 3.1                           
Number.  The maximum number of shares of
Common Stock that may be issued under the Plan or be subject to Awards may not
exceed 1,300,000 shares, provided that immediately following the initial
offering and grant of Awards hereunder such number shall automatically be
reduced by (x) the number of shares of Common Stock covered by Awards
offered but not granted under the Plan in the initial offering and grant of
Awards hereunder minus (y) 50,000 shares.  The shares of
Common Stock to be delivered under the Plan may consist, in whole or in part,
of treasury Common Stock or authorized but unissued Common Stock that is not
reserved for any other purpose.

 

Section 3.2                           
Canceled,
Terminated or Forfeited Awards.  If any Award or portion thereof is for any
reason forfeited, canceled or otherwise terminated without exercise, the shares
of Common Stock subject to such Award or portion thereof shall again be
available for grant under the Plan.

 

Section 3.3                           
Adjustment in
Capitalization. 
The number of shares of Common Stock available for issuance under the Plan and
the number, class, exercise price or other terms of any outstanding Award may
be adjusted by the Board if it shall deem such an adjustment necessary or
appropriate to reflect any Common Stock dividend, stock split or share combination
or any recapitalization, merger, consolidation, exchange of shares, liquidation
or dissolution of the Company or other similar transaction affecting the Common
Stock.

 

Article IV

Stock Purchase

 

Section 4.1                           
Awards and Administration.  The Board may offer and sell
shares of Common Stock to Participants at such time or times as it shall
determine, the terms of which shall be set forth in a Subscription Agreement.

 

Section 4.2                           
Minimum Purchase
Price. 
Unless otherwise determined by the Board, the purchase price for any shares of
Common Stock to be offered and sold pursuant to this Article IV shall not be
less than the Fair Market Value on the Grant Date.

 

Section 4.3                           
Payment.  Unless otherwise determined by
the Board, the purchase price with respect to shares of Common Stock offered
and sold pursuant to this Article IV shall be paid in cash or other readily
available funds

 

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simultaneously with the closing of the purchase of
such Common Stock.  The Board may authorize the Company or one or more of
its Subsidiaries to guarantee indebtedness incurred by a Participant in
connection with a purchase of shares pursuant to this Article IV, on such terms
as the Board shall determine.

 

Article V

Terms of Options

 

Section 5.1                           
Grant of Options.  The Board may grant Options to
Participants at such time or times as it shall determine.  Options granted
pursuant to the Plan will not be “incentive stock options” as defined in the
Code unless otherwise determined by the Board.  Each Option granted to a
Participant shall be evidenced by an Option Agreement that shall specify the
number of shares of Common Stock that may be purchased pursuant to such Option,
the exercise price at which a share of Common Stock may be purchased pursuant
to such Option, the duration of such Option (not to exceed the tenth
anniversary of the Grant Date), and such other terms as the Board shall
determine.

 

Section 5.2                           
Exercise Price.  The exercise price per share of
Common Stock to be purchased upon exercise of an Option shall not be less than
the Fair Market Value on the Grant Date.

 

Section 5.3                           
Vesting and
Exercise of Options. 
Options shall become vested or exercisable in accordance with the vesting
schedule or upon the attainment of such performance criteria as shall be
specified by the Board on or before the Grant Date.  Unless otherwise
determined by the Board or before on the Grant Date, one-fifth of the Options
shall vest and become exercisable on each of the first, second, third, fourth
and fifth anniversaries of the Grant Date.  The Board may accelerate the
vesting or exercisability of any Option, all Options or any class of Options at
any time and from time to time.

 

Section 5.4                           
Payment.  The Board shall establish
procedures governing the exercise of Options, which procedures shall generally
require that prior written notice of exercise be given and that the exercise
price (together with any required withholding taxes or other similar taxes,
charges or fees) be paid in full in cash, cash equivalents or other
readily-available funds at the time of exercise.  Notwithstanding the
foregoing, on such terms as may be the Board may establish from time to time
following a Public Offering (i) the Board may permit a Participant to
tender shares of Common Stock such Participant has owned for all or a portion of
the applicable exercise price or minimum required withholding taxes and (ii)
the Board may authorize the Company to establish a broker-assisted

 

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exercise program.  In connection with any Option
exercise, the Company may require the Participant to furnish or execute such
other documents as it shall reasonably deem necessary to (a) evidence
such exercise, (b) determine whether registration is then required under
the U.S. federal securities laws or similar non-U.S. laws or (c) comply
with or satisfy the requirements of the U.S. federal securities laws,
applicable state or non-U.S. securities laws or any other law.  As a
condition to the exercise of any Option before a Public Offering, a Participant
shall enter into a Subscription Agreement.

 

Article VI

Termination of Employment

 

Section 6.1                           
Expiration of
Options Following Termination of Employment.  Unless otherwise determined by the Board
before or after the Grant Date, if a Participant’s employment with the Company
and its Subsidiaries terminates, such Participant’s Options shall be treated as
follows:

 

(a)                       
if such employment
terminates by reason of the Participant’s death or Disability (each, a “Special
Termination”), any Options held by the Participant shall immediately vest
in full;

 

(b)                      
in the case of any
termination other than a Special Termination, any unvested Options shall
terminate effective as of such termination of employment;

 

(c)                       
except in the case of
a termination for Cause, vested Options (including any options that vest
pursuant to Section 6.1(a) above) shall remain exercisable through the earliest
of (i) the normal expiration date, (ii) 60 days after the
Participant’s termination of employment (180 days in the case of a Special
Termination or a retirement at normal retirement age or later) and (iii)
any cancellation pursuant to Section 7.1; and

 

(d)                      
in the case of a
termination for Cause, any and all Options held by such Participant (whether or
not then vested or exercisable) shall terminate immediately upon such
termination of employment.

 

Section 6.2                           
Certain Rights
upon Termination of Employment Prior to a Public Offering.  Each Subscription Agreement and
Option Agreement shall provide that the Company and the CD&R Fund shall
have successive rights prior to a Public Offering to purchase all or any
portion of a Participant’s shares of Common Stock and vested Options upon any
termination of employment, at a

 

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purchase price per share equal to the Fair Market as
of the effective date of such termination of employment (or, if the
Participant’s employment qualifies as a termination for Cause, for a purchase
price per share equal to the lesser of (i) such Fair Market Value and (ii)
such Participant’s per share purchase price), minus any applicable
exercise price.  The Board may provide in a Subscription Agreement that
following a Participant’s Special Termination, retirement at or after normal
retirement age or termination of employment by the Company or its Subsidiaries
without Cause in each case prior to a Public Offering, such Participant may
require the Company to repurchase all (but not less than all) of such
Participant’s shares of Common Stock (but excluding any shares acquired on
exercise of an Option), at a purchase price per share equal to the Fair Market
Value on the date of the Participant’s termination of employment, subject to
the Company having the ability to do so under the terms of its financing
arrangements and under Delaware law.

 

Article VII

Change in Control

 

Section 7.1                           
Accelerated
Vesting and Payment. 
Except as otherwise provided in this Article VII, and unless otherwise provided
in the Award Agreement, upon a Change in Control each Option, whether vested or
unvested, shall be canceled in exchange for a payment in an amount equal to the
excess, if any, of the Change in Control Price over the exercise price for such
Option.

 

Section 7.2                           
Alternative
Options.  No
cancellation, acceleration or other payment shall occur with respect to any
Option if the Board reasonably determines in good faith, prior to the
occurrence of a Change in Control, that such Option shall be honored or
assumed, or new rights substituted therefor following the Change in Control
(such honored, assumed or substituted award, an “Alternative Award”), provided
that any Alternative Award must:

 

(a)                       
give the Participant
who held such Option rights and entitlements substantially equivalent to or
better than the rights and terms applicable under such Option, including, but
not limited to, an identical or better exercise and vesting schedule, identical
or better timing and methods of payment and, if the Alternative Award or the
securities underlying it are not publicly-traded, identical or better rights
following a termination of employment to require the Company or the acquiror in
such Change in Control to repurchase the Alternative Award or securities
underlying such Alternative Award; and

 

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(b)                      
have terms such that
if, within two years following a Change in Control, a Participant’s employment
is involuntarily or constructively terminated or terminates as a result of his
or her death, Disability or retirement at or after normal retirement age, such
Alternative Award shall immediately vest in full and such Participant shall
receive a cash payment equal to the excess (if any) of the fair market value of
the stock subject to the Alternative Award on the date of surrender over the
price that such Participant would be required to pay to exercise such
Alternative Award or shall have an immediate right to exercise such Alternative
Award and receive shares that are then publicly-traded.

 

Section 7.3                           
Limitation of
Benefits. 
If, whether as a result of accelerated vesting, the grant of an Alternative
Award or otherwise, a Participant would receive any payment, deemed payment or
other benefit as a result of the operation of Section 7.1 or Section 7.2 that,
together with any other payment, deemed payment or other benefit a Participant
may receive under any other plan, program, policy or arrangement, would
constitute an “excess parachute payment” under section 280G of the Code, then,
notwithstanding anything in this Plan to the contrary, the payments, deemed
payments or other benefits such Participant would otherwise receive under this
Section 7.1 or Section 7.2 shall be reduced to the extent necessary to
eliminate any such excess parachute payment and such Participant shall have no
further rights or claims with respect thereto.  If the preceding sentence
would result in a reduction of the payments, deemed payments or other benefits
a Participant would otherwise receive in more than an immaterial amount, the
Company will use its commercially reasonable best efforts to seek the approval
of the Company’s shareholders in the manner provided for in section 280G(b)(5)
of the Code and the regulations thereunder with respect to such reduced
payments or other benefits (if the Company is eligible to do so), so that such
payments would not be treated as “parachute payments” for these purposes (and
therefore would cease to be subject to reduction pursuant to this Section 7.3).

 

Article VIII

Director Share Awards

 

The Board may provide for
the grant of Director Share Awards to Eligible Directors (or categories or
classes of Eligible Directors) on such terms as the Board shall determine from
time to time, including as part of the retainer or other fees payable to an
Eligible Director, or as part of an arrangement that permits the deferral of
payment of such fees, on a mandatory or elective basis, into the right to
receive shares of Common Stock and distributions thereon in the future or a
cash payment measured by reference to the value therof.

 

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Article IX

Authority to Vary Terms or Establish Local Jurisdiction Plans

 

The Board may vary the
terms of Awards under the Plan, or establish sub-plans under this Plan to
authorize the grant of awards that have additional or different terms or
features than those otherwise provided for in the Plan, if and to the extent
the Board determines necessary or appropriate to permit the grant of awards
that are best suited to further the purposes of the Plan and to comply with
applicable securities laws in a particular jurisdiction or provide terms
appropriately suited for Employees in such jurisdiction in light of the tax
laws of such jurisdiction while being as consistent as otherwise possible with
the terms of Awards under the Plan; provided that this Article IX shall
not be deemed to authorize any increase the number of shares of Common Stock
available for issuance under the Plan set forth in Section 3.1.

 

Article X

Amendment, Modification, and Termination of the Plan

 

The Board may terminate
or suspend the Plan at any time, and may amend or modify the Plan from time to
time.  No amendment, modification, termination or suspension of the Plan
shall in any manner adversely affect any Award theretofore granted under the
Plan without the consent of the Participant holding such Award or the consent
of a majority of Participants holding similar Awards (such majority to be
determined based on the number of shares covered by such Awards). 
Shareholder approval of any such amendment, modification, termination or
suspension shall be obtained to the extent mandated by applicable law, or if
otherwise deemed appropriate by the Board.

 

Article XI

Definitions

 

Section 11.1                     
Definitions.  Whenever used herein, the
following terms shall have the respective meanings set forth below:

 

“Affiliate” shall mean, with respect to any
Person, any other Person directly or indirectly controlling, controlled by or
under common control with such first Person; provided that a director,
member of management or other Employee of the Company or any of its
Subsidiaries shall not be deemed to be an Affiliate of the CD&R Fund. 
For these purposes, “control” (including the terms “controlled by” and “under
common control

 

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with”) means the possession, directly or indirectly,
of the power to direct or cause the direction of the management policies of a
Person by reason of ownership of voting securities, by contract or otherwise.

 

“Alternative Award” has the meaning given in
Section 7.2.

 

“Award” shall mean an Option, or Director Share
Award or an offer and sale of shares of Common Stock pursuant to Article IV, in
each case granted pursuant to the terms of the Plan.

 

“Award Agreement” means a Subscription
Agreement, an Option Agreement or any other agreement evidencing an Award.

 

“Board” means the Board of Directors of the
Company.

 

“CD&R Fund” means The Clayton, Dubilier
& Rice Private Equity Fund VI Limited Partnership, a Cayman Islands limited
partnership, and any successor investment vehicle managed by Clayton, Dubilier
& Rice, Inc., a Delaware corporation.

 

“Cause” means, unless otherwise provided in the
Award Agreement, any of the following:  (i) the Participant’s
commission of a crime involving fraud, theft, false statements or other similar
acts or commission of any crime that is a felony (or a comparable
classification in a jurisdiction that does not use these terms); (ii)
the Participant’s engaging in any conduct that constitutes an employment
disqualification under applicable law; (iii) the Participant’s willful
or grossly negligent failure to perform his or her employment-related duties
for the Company and its Subsidiaries; (iv) the Participant’s material
violation of any Company policy as in effect from time to time; (v) the
Participant’s engaging in any act or making any statement that impairs,
impugns, denigrates, disparages or negatively reflects upon the name,
reputation or business interests of the Company or its Subsidiaries; (vi)
the Participant’s material breach of any Award Agreement, employment agreement,
or noncompetition, nondisclosure or nonsolicitation agreement to which the
Participant is a party or by which the Participant is bound or (vii) the
Participant’s engaging in any conduct injurious or detrimental to the Company
or its any of its Subsidiaries. The determination as to whether “Cause” has
occurred shall be made by the Board, which shall have the authority to waive
the consequences under the Plan of the existence or occurrence of any of the
events, acts or omissions constituting “Cause.”  A termination for Cause
shall be deemed to include a determination following a Participant’s
termination of employment for any

 

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reason that the circumstances existing prior to such
termination for the Company or one of its Subsidiaries to have terminated such
Participants employment for Cause.

 

“Change in Control” means the first to occur of
the following events after the Effective Date:

 

(i)  the acquisition by any person, entity or
“group” (as defined in Section 13(d) of the Securities Exchange Act of 1934, as
amended) of 50% or more of the combined voting power of the Company’s then
outstanding voting securities, other than any such acquisition by the Company,
any of its Subsidiaries, any employee benefit plan of the Company or any of its
Subsidiaries, the CD&R Fund or any of its co-investors in connection with
the CD&R Fund’s investment in the Company, or any Affiliates of the
foregoing;

 

(ii)  the merger, consolidation or other similar
transaction involving the Company, as a result of which persons who were
stockholders of the Company immediately prior to such merger, consolidation, or
other similar transaction do not, immediately thereafter, own, directly or
indirectly, more than 50% of the combined voting power entitled to vote
generally in the election of directors of the merged or consolidated company;

 

(iii)  within any 24-month period, the persons
who were directors of the Company at the beginning of such period (the “Incumbent
Directors”) shall cease to constitute at least a majority of the Board, provided
that any director elected or nominated for election, to the Board, by a
majority of the Incumbent Directors then still in office shall be deemed to be
an Incumbent Director for purposes of this clause (iii); or

 

(iv)  the sale, transfer or other disposition of
all or substantially all of the assets of the Company to one or more persons or
entities that are not, immediately

 

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prior to such sale, transfer or other disposition,
Affiliates of  the Company.

 

Notwithstanding the foregoing, a Public Offering shall
not constitute a Change in Control.

 

“Change in Control Price” means the price per
share of Common Stock offered in conjunction with any transaction resulting in
a Change in Control.  If any part of the offered price is payable other
than in cash, the Change in Control price shall be determined in good faith by
the Board as constituted immediately prior to the Change in Control.

 

“Code” means the United States Internal Revenue
Code of 1986, as amended, and any successor thereto.

 

“Common Stock” means the Common Stock, par
value $.01 per share, of the Company.

 

“Company” means CDRV Investors, Inc., a
Delaware corporation, and any successor thereto.

 

“Director Share Award” means an award pursuant
to Article VIII to an Eligible Director of Common Stock, a right to receive
Common Stock or a payment measured by reference thereto and distributions
thereon.

 

“Disability” means, unless otherwise provided
in an Award Agreement, a Participant’s long-term disability within the meaning
of the long-term disability insurance plan or program of the Company or
Subsidiary of the Company then covering the Participant, or in the absence of
such a plan or program, as determined by the Board.  The Board’s reasoned
and good faith judgment of Disability shall be final and shall be based on such
competent medical evidence as shall be presented to it by the Participant or by
any physician or group of physicians or other competent medical expert employed
by the Participant or the Company to advise the Board.

 

“Eligible Director” means a member of the Board
other than an employee or officer of the Company or any of its Subsidiaries.

 

“Employee” means any executive, officer or
other employee of the Company or any Subsidiary.

 

10

 

“Fair Market Value” means, as of any date of
determination prior to a Public Offering, the per share fair market value on
such date of a share of Common Stock as determined in good faith by the
Board.  In making a determination of Fair Market Value, the Board shall
give due consideration to such factors as it deems appropriate, including, but
not limited to, the earnings and other financial and operating information of
the Company in recent periods, the potential value of the Company as a whole,
the future prospects of the Company and the industries in which it competes,
the history and management of the Company, the general condition of the
securities markets, the fair market value of securities of companies engaged in
businesses similar to those of the Company, and any recent valuation of the
Common Stock that shall have been performed by an independent valuation firm
(although nothing herein shall obligate the Board to obtain any such
independent valuation).  Unless otherwise determined by the Board or
provided in an Award Agreement, any determination of Fair Market Value as of
the end of any fiscal year shall continue to apply throughout the next
succeeding fiscal year.  The determination of Fair Market Value will not
give effect to any restrictions on transfer of the Common Stock or take into
account any control premium, but shall be determined taking into account the
fact that such shares would represent a minority interest in the Company and
are illiquid.  Initially, the Fair Market Value shall be $100.00 per
share, which is the price paid by the CD&R Fund and its co-investors in connection
with their initial investment in the Company.  Following a Public
Offering, “Fair Market Value” shall mean, as of any date of determination, the
mid-point between the high and the low trading prices for such date per share
of Common Stock as reported on the principal stock exchange on which the shares
of Common Stock are then listed.

 

“Grant Date” means, with respect to any Award,
the date as of which such Award is granted pursuant to the Plan.

 

“Option” means the right granted pursuant to
the Plan to purchase one share of Common Stock.

 

“Option Agreement” means an agreement between
the Company and a Participant embodying the terms of any Options granted
pursuant to the Plan and in the form approved by the Board from time to time
for such purpose.

 

“Participant” means any Employee or Eligible
Director who is granted an Award.

 

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“Person” means any natural person, firm,
partnership, limited liability company, association, corporation, company,
trust, business trust, governmental authority or other entity.

 

“Plan” means this CDRV Investors, Inc. Stock
Incentive Plan.

 

“Public Offering” means the first day as of
which (i) sales of Common Stock are made to the public in the United
States pursuant to an underwritten public offering of the Common Stock led by
one or more underwriters at least one of which is an underwriter of nationally
recognized standing or (ii) the Board has determined that shares of the
Common Stock otherwise have become publicly-traded for this purpose.

 

“Special Termination” has the meaning given in
Section 6.1.

 

“Subscription Agreement” means a stock
subscription agreement between the Company and a Participant embodying the
terms of any stock purchase made pursuant to the Plan and in the form approved
by the Board from time to time for such purpose.

 

“Subsidiary” means any corporation limited
liability company or other entity, a majority of whose outstanding voting
securities is owned, directly or indirectly, by the Company.

 

Section 11.2                               
Gender and Number.  Except when otherwise indicated
by the context, words in the masculine gender used in the Plan shall include
the feminine gender, the singular shall include the plural, and the plural
shall include the singular.

 

Article XII

Miscellaneous Provisions

 

Section 12.1                               
Nontransferability
of Awards. 
Except as otherwise provided herein or as the Board may permit on such terms as
it shall determine, no Awards granted under the Plan may be sold, transferred,
pledged, assigned, hedged, encumbered or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution.  All rights
with respect to Awards granted to a Participant under the Plan shall be exercisable
during the Participant’s life-time by such Participant only (or, in the event
of the Participant’s Disability, such Participant’s legal
representative).  Following a Participant’s death, all rights with respect
to Awards that were outstanding at the time of such Participant’s death and

 

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have not terminated shall be exercised by his
designated beneficiary or by his estate in the absence of a designated
beneficiary.

 

Section 12.2                               
Tax Withholding.  The Company or the Subsidiary
employing a Participant shall have the power to withhold, or to require such
Participant to remit to the Company or such Subsidiary, an amount sufficient to
satisfy all U.S. federal, state, local and any non-U.S. withholding tax or
other governmental tax, charge or fee requirements in respect of any Award
granted under the Plan.

 

Section 12.3                               
Beneficiary
Designation. 
Pursuant to such rules and procedures as the Board may from time to time
establish, a Participant may name beneficiary or beneficiaries (who may be
named contingently or successively) by whom any right under the Plan is to be
exercised in case of such Participant’s death.  Each designation will
revoke all prior designations by the same Participant, shall be in a form
reasonably prescribed by the Board, and will be effective only when filed by
the Participant in writing with the Board during his lifetime.

 

Section 12.4                               
Delivery of
Financial Statements to Participants.  Each year the Company will provide the
Company’s annual financial statements to the Participants.

 

Section 12.5                               
Limitation on
Number of Outstanding Options.  At no time shall the total number of shares of
Common Stock issuable upon exercise of all outstanding Options and the total
number of shares of Common Stock provided for under any bonus or similar plan
or agreement of the Company exceed 30%. as calculated in accordance with the
conditions and exclusions of California Code of Regulations, Title 10, Ch. 3,
Section 260.140.45, of the securities outstanding at the time the calculation
is made.

 

Section 12.6                               
No Guarantee of
Employment or Participation.  Nothing in the Plan or in any agreement
granted hereunder shall interfere with or limit in any way the right of the
Company or any Subsidiary to terminate any Participant’s employment or
retention at any time, or confer upon any Participant any right to continue in
the employ or retention of the Company or any Subsidiary.  No Employee or
Eligible Director shall have a right to be selected as a Participant or, having
been so selected, to receive any Awards.

 

Section 12.7                               
No Limitation on
Compensation; No Impact on Benefits.  Nothing in the Plan shall be construed to
limit the right of the Company or any Subsidiary to establish other plans or to
pay compensation to its Employees or Eligible Directors, in cash or property,
in a manner that is not expressly authorized under the Plan.  Except as
may otherwise be specifically and unequivocally stated

 

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under any employee benefit plan, policy or program, no
amount payable in respect of any Award shall be treated as compensation for
purposes of calculating a Participant’s rights under any such plan, policy or
program.  The selection of an Employee as a Participant shall neither
entitle such Employee to, nor disqualify such Employee from, participation in
any other award or incentive plan.

 

Section 12.8                               
Requirements of
Law.  The
granting of Awards and the issuance of shares of Common Stock pursuant to the
Plan shall be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national securities exchanges as
may be required.  No Awards shall be granted under the Plan, and no shares
of Common Stock shall be issued under the Plan, if such grant or issuance would
result in a violation of applicable law, including U.S. federal securities laws
and any applicable state or non-U.S. securities laws.

 

Section 12.9                               
Freedom of Action.  Nothing in the Plan or any Award
Agreement evidencing an Award shall be construed as limiting or preventing the
Company or any Subsidiary from taking any action that it deems appropriate or
in its best interest (as determined in its sole and absolute discretion) and no
Participant (or person claiming by or through a Participant) shall have any
right relating to the diminishment in the value of any Award as a result of any
such action.

 

Section 12.10                         
Unfunded Plan;
Plan Not Subject to ERISA.  The plan is an unfunded plan and Participants shall have the
status of unsecured creditors of the Company.  The Plan is not intended to
be subject to the Employee Retirement Income and Security Act of 1974, as
amended.

 

Section 12.11                         
Term of Plan.  The Plan shall be effective as of
the date specified by the Board and shall continue in effect, unless sooner
terminated pursuant to Article X, until the tenth anniversary of such date, the
provisions of the Plan shall continue thereafter to govern all outstanding Awards.

 

Section 12.12                         
No Voting Rights.  Except as otherwise required by
law, no Participant holding any Awards granted under the Plan shall have any
right in respect of such Awards to vote on any matter submitted to the
Company’s stockholders until such time as the shares of Common Stock underlying
such Awards have been issued.

 

Section 12.13                         
Governing Law.  The Plan, and all agreements
hereunder, shall be governed by and construed in accordance with the law of the
State of New York regardless of the application of rules of conflict of law
that would apply the

 

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laws of any other jurisdiction, except to the extent
that the corporate law of the State of Delaware specifically and mandatorily
applies.

 

 

Effective Date: May 27, 2004

 

15Exhibit
10.7

 

Employee
Stock Subscription Agreement

 

This Employee Stock
Subscription Agreement, dated as of
[                    ],
between CDRV Investors, Inc., a Delaware corporation, and the Employee whose
name appears on the signature page hereof, is being entered into pursuant to
the CDRV Investors, Inc. Stock Incentive Plan.  The meaning of each
capitalized term may be found in Section 10.

 

The Company and the
Employee hereby agree as follows:

 

Section 1.                                          
Purchase
and Sale of Common Stock

 

(a)                                             
In
General.  Subject to all of the terms of this Agreement, at the Closing
the Employee shall purchase, and the Company shall sell, the aggregate number
of shares of Common Stock set forth on the signature page hereof (the “Shares”),
at a purchase price of $100.00 per Share.

 

(b)                                            
Condition
to Sale.  Notwithstanding anything in this Agreement to the contrary, the
Company shall have no obligation to sell any Common Stock to any person who is
not an employee of the Company or any of its Subsidiaries at the time that such
Common Stock is to be sold or who is a resident of a jurisdiction in which the
sale of Common Stock to him would constitute a violation of the securities,
“blue sky” or other laws of such jurisdiction.

 

Section 2.                                          
The
Closing

 

(a)                                             
Time
and Place.  The Company shall determine the time and place of
the closing of the purchase and sale of the Shares (the “Closing”).

 

(b)                                            
Delivery
by the Employee.  At the Closing, the Employee shall deliver to the
Company the aggregate purchase price for the Shares.

 

(c)                                             
Delivery
by the Company.  At the Closing, the Company shall register the
Shares in the Employee’s name.  Prior to a Public Offering, the Company
will not deliver share certificates to the Employee; instead, if the Company
issues the Shares in certificated form, certificates relating to the Shares
shall be held by the Secretary of the Company or his designee on behalf of the
Employee.

 

 

Section 3.                                          
Employee’s
Representations and Warranties

 

(a)                                             
Access
to Information, Etc.  The Employee represents, warrants and covenants as
follows:

 

(i)                                    
the
Employee has carefully reviewed the Offering Memorandum, dated as of May 27,
2004, each of its exhibits, appendices and other attachments, each document
incorporated by reference into the Offering Memorandum, and the other materials
furnished to the Employee in connection with the offer and sale of the Shares
pursuant to this Agreement;

 

(ii)                                 
the
Employee has had an adequate opportunity to consider whether or not to purchase
any of the shares of Common Stock offered to the Employee, and to discuss such
purchase with the Employee’s legal, tax and financial advisors;

 

(iii)                              
the
Employee understands the terms and conditions that apply to the Shares and the
risks associated with an investment in the Shares;

 

(iv)                             
the
Employee has a good understanding of the English language;

 

(v)                                
the
Employee is, and will be at the Closing, an officer or employee of the Company
or one of its Subsidiaries; and

 

(vi)                             
the
Employee is, and will be at the Closing, a resident of the jurisdiction
indicated as his or her address set forth on the signature page of this
Agreement.

 

(b)                                            
Ability
to Bear Risk.  The Employee represents and warrants as follows:

 

(i)                                    
the
Employee understands that the rights of first refusal and other transfer
restrictions that apply to the Shares may effectively preclude the transfer of
any of the Shares prior to a Public Offering;

 

(ii)                                 
the
financial situation of the Employee is such that he or she can afford to bear
the economic risk of holding the Shares for an indefinite period;

 

2

 

(iii)                              
the
Employee can afford to suffer the complete loss of his or her investment in the
Shares; and

 

(iv)                             
the
Employee understands that the Company’s Financing Agreements may restrict the
ability of the Company to repurchase the Shares pursuant to Section 5 and
that the Company and its subsidiaries may enter into or amend, refinance or
enter into new Financing Agreements without regard to the impact on the
Company’s ability to repurchase the Shares.

 

(c)                                             
Voluntary
Purchase.  The Employee represents and warrants that the
Employee is purchasing the Shares voluntarily.

 

(d)                                            
Not
Right to Awards.  The Employee acknowledges and agrees that the sale
of the Shares and the grant of any options that are awarded to the Employee in
connection with the purchase of the Shares (i) are being made on an
exceptional basis and are not intended to be renewed or repeated, (ii)
are entirely voluntary on the part of the Company and its Subsidiaries and (iii)
should not be construed as creating any obligation on the part of the Company
or any of its Subsidiaries to offer any shares of stock or options in the
future.

 

(e)                                             
Investment
Intention.  The Employee represents and warrants that the
Employee is acquiring the Shares solely for his or her own account for
investment and not on behalf of any other person or with a view to, or for sale
in connection with, any distribution of the Shares.

 

(f)                                               
Securities
Law Matters.  The Employee acknowledges and represents and
warrants that the Employee understands that:

 

(i)                                    
the
Shares have not been registered under the Securities Act or any state or
non-United States securities or “blue sky” laws;

 

(ii)                                 
it
is not anticipated that there will be any public market for the Shares;

 

(iii)                              
the
Shares must be held indefinitely and the Employee must continue to bear the
economic risk of the investment in the Shares unless the Shares are
subsequently registered under applicable securities and other laws or an
exemption from registration is available;

 

(iv)                             
the
Company is under no obligation to register the Shares or to make an exemption
from registration available; and

 

3

 

(v)                                
a
restrictive legend shall be placed on any certificates representing the Shares
that makes clear that the Shares are subject to the restrictions on
transferability set forth in this Agreement and a notation shall be made in the
appropriate records of the Company or any transfer agent indicating that the
Shares are subject to such restrictions.

 

Section 4.                                          
Restriction
on Transfer of Shares

 

(a)                                             
In
General.  Prior to a Public Offering, the Employee shall not Transfer any
of the Shares other than (i) upon the Employee’s death by will or by the
laws of descent and distribution or (ii) in strict compliance with the
terms of this Agreement.  Shares may only be Transferred in a manner that
complies with all applicable securities laws and, if the Company so requests,
prior to any attempted Transfer the Employee shall provide to the Company at
the Employee’s expense such information relating to the compliance of such
proposed Transfer with the terms of this Agreement and applicable securities
laws as the Company shall reasonably request, which may include an opinion in
form and substance reasonably satisfactory to the Company of counsel regarding
such securities law or other matters as the Company shall request (such counsel
to be reasonably satisfactory to the Company).

 

(b)                                            
No
Transfer That Would Result In Registration Requirements.  Prior to a
Public Offering, the Shares may not be Transferred if such Transfer would
result in the Company becoming subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act (or other similar provision of
non-U.S. law) or would increase the risk that the Company would be subject to
such reporting requirements as determined by the Company in its sole and
absolute discretion.  Any purported Transfer in violation of this
Section 4(b) shall be void ab initio.

 

Section 5.                                          
Options
Effective on Termination of Employment Prior to a Public Offering

 

(a)                                             
Rights
of the Company and the Investor.  If the Employee’s
employment with the Company terminates for any reason prior to a Public
Offering, the Company may elect to purchase all or a portion of the Shares by
written notice to the Employee delivered on or before the 60th day after the
Determination Date (the “First Option Period”).  The Investor may
elect to purchase all or any portion of the Shares that the Company has not
elected to purchase by written notice to the Employee delivered at any time

 

4

 

on or before the 80th day after the
Determination Date (the “Second Option Period”).

 

(b)                                            
Limited
Right of the Employee to Require the Company to Repurchase Shares.  If the
Employee’s employment with the Company is terminated by the Employee upon
Retirement or by reason of the Disability or death of the Employee or is
terminated by the Company without Cause, the Employee may require the Company
to purchase all (but not less than all) of the Shares by written notice
delivered to the Company within 30 days following the expiration of the Second Option
Period.

 

(c)                                             
Purchase
Price.  The purchase price per Share pursuant to this Section 5
shall equal the Fair Market Value as of the effective date of the Employee’s
termination of employment (the “Determination Date”), provided
that if the Employee’s employment is terminated by the Company for Cause, the
purchase price per Share shall equal the lesser of (i) the Fair
Market Value of such Share as of the Determination Date and (ii) the
price at which the Employee purchased such Share from the Company pursuant to
this Agreement (the “Purchase Price”).

 

(d)                                            
Closing
of Purchase; Payment of Purchase Price.  Subject to
Section 5(f), the closing of a purchase pursuant to this Section 5
shall take place at the principal office of the Company no later than the 90th
day following the Determination Date (or, in the case of a purchase pursuant to
Section 5(b), no later than 10 business days following the Company’s
receipt of written notice from the Employee pursuant to
Section 5(b)).  At the closing, (i) the Company or the
Investor, as the case may be, shall, subject to Section 5(e), pay the
Purchase Price to the Employee and (ii) the Employee shall deliver to
the Company such certificates or other instruments representing the Shares so
purchased, appropriately endorsed by the Employee or directing that the shares
be so transferred to the purchase thereof, as the Company may reasonably
require.  Notwithstanding the foregoing, if the Determination Date occurs
during the first or last fiscal quarter of any fiscal year of the Company, the
Company or the Investor, as the case may be, may elect to pay the Purchase
Price in two installments, as follows:  (i) at the closing the
Company or the Investor, as the case may be, shall pay an amount equal to at
least 80% of the Fair Market Value of the Shares determined on the basis of the
Board’s most recent determination thereof (the “First Installment Amount”)
and (ii) no later than the fifteenth business day following the Board’s
next determination of the Fair Market Value, the Company or the Investor, as
the case may be, shall pay the excess, if any, of the Purchase Price calculated
using such subsequent determination of Fair Market Value over the First

 

5

 

Installment Amount or, if the First
Installment Amount exceeds such Purchase Price, the Company shall so notify the
Employee, who shall promptly repay any such excess to the Company or the Investor,
as the case may be.

 

(e)                                             
Application
of the Purchase Price to Certain Loans or Other Obligations.  The Company
and the Investor shall be entitled to apply any amounts otherwise payable
pursuant to this Section 5 to discharge any indebtedness of the Employee
to the Company or any of its Subsidiaries or indebtedness that is guaranteed by
the Company or any of its Subsidiaries or to offset any such amounts against
any other obligations of the Employee to the Company or any of its
Subsidiaries.

 

(f)                                               
Certain
Restrictions on Repurchases; Delay of Repurchase.  Notwithstanding any other
provision of this Agreement, the Company shall not be permitted or obligated to
make any payment with respect to a repurchase any Shares from the Employee if (i)
such repurchase (or the payment of a dividend by a Subsidiary to the Company to
fund such repurchase) would result in a violation of the terms or provisions
of, or result in a default or an event of default under any guaranty, financing
or security agreement or document entered into by the Company or any Subsidiary
from time to time (the “Financing Agreements”), (ii) such
repurchase would violate any of the terms or provisions of the Certificate of
Incorporation of the Company or (iii) the Company has no funds legally
available to make such payment under the General Corporation Law of the State
of Delaware.  If payment with respect to a repurchase by the Company
otherwise permitted or required under this Section 5 is prevented by the
terms of the preceding sentence: (i) the payment of the applicable
Purchase Price shall be postponed and will take place at the first opportunity
thereafter when the Company has funds legally available to make such payment
and when such payment will not result in any default, event of default or
violation under any of the Financing Agreements or in a violation of any term
or provision of the Certificate of Incorporation of the Company, (ii)
such repurchase obligation shall rank against other similar repurchase
obligations with respect to shares of Common Stock according to priority in
time of the effective date of the termination of employment giving rise to such
repurchase (provided that any repurchase commitment arising from
Disability or death shall have priority over any other repurchase obligation)
and (iii) the Purchase Price (except in the case of a termination for
Cause) shall be increased by an amount equal to interest on such Purchase Price
for the period during which payment is delayed at a rate equal to 7% per annum.

 

6

 

(g)                                            
Right
to Retain Shares.  If the options of the Company and the Investor to
purchase the Shares pursuant to this Section 5 are not exercised with
respect to all of the Shares, the Employee shall be entitled to retain the
remaining Shares, although those Shares shall remain subject to all of the
other provisions of this Agreement.

 

(h)                                            
Notice
of Termination; Etc.  Prior to a Public Offering, the Company shall give
prompt written notice to the Investor of any termination of the Employee’s
employment with the Company and of the Company decision whether or not to
purchase Shares pursuant to Section 5(a).

 

(i)                                                
Public
Offering.  The provisions of this Section 5 shall
terminate upon a Public Offering, provided that such termination shall
not affect the Company’s repurchase right following a termination for Cause
that was effective (or deemed to be effective) prior to such Public Offering
any payment obligation postponed pursuant to Section 5(f).

 

Section 6.                                          
“Tag-Along”
Rights

 

(a)                                             
Sale
Notice.  At least 30 days before the Investor consummates any sale of
more than 80% of its shares of Common Stock to a Third-Party Buyer, the Company
will deliver a written notice (the “Sale Notice”) to the Employee. 
The Sale Notice will disclose the material terms and conditions of the proposed
sale or transfer, including the number of shares of Common Stock that the
prospective transferee is willing to purchase, the proposed purchase price per
share and the intended consummation date of such sale.

 

(b)                                            
Right
to Participate.  The Employee may elect to participate in the sale or
other transfer described in the Sale Notice by giving written notice to the
Investor and the Company within 15 days after the Company has given the related
Sale Notice to the Employee.  If the Employee elects to participate, the
Employee will be entitled to sell in the contemplated transaction, at the same
price and on the same terms and conditions as set forth in the Sale Notice, an
amount of Shares equal to the product of (i) the quotient determined by
dividing (A) the percentage of Shares then held by the Employee by (B)
the aggregate percentage of shares of Common Stock represented by the Shares
then held by the Investor and all holders of Common Stock electing to
participate such sale and (ii) the number of shares of Common Stock such
transferee has agreed to purchase in the contemplated transaction.

 

7

 

(c)                                             
Certain
Matters Relating to the Investor.  The Company will use its
commercially reasonable best efforts to cause the Investor to conduct any sale
that is within the scope of this Section 7 in a manner consistent with
this Section 7.  If the Company is not able to do so or fails to give
the Sale Notice to the Employee as prescribed in this Section 7(a), the
Employee’s sole remedy shall be against the Company.

 

(d)                                            
Expiration
Upon a Public Offering.  The provisions of this Section 6 shall
terminate upon the consummation of a Public Offering.

 

Section 7.                                          
Drag-Along
Rights

 

(a)                                             
Drag-Along
Notice.  If the Investor intends to sell or otherwise Transfer, or enter
into an agreement to sell or otherwise Transfer, for cash or other
consideration, of more than 20% of its shares of Common Stock to a Third-Party
Buyer and the Investor elects to exercise its rights under this Section 7,
the Company shall deliver written notice (a “Drag-Along Notice”) to the
Employee, which notice shall state (i) that the Investor wishes to
exercise its rights under this Section 7 with respect to such sale, (ii)
the name and address of the Third-Party Buyer, (iii) the per share
amount and form of consideration the Investor proposes to receive for its
shares of Common Stock, (iv) the material terms and conditions of payment
of such consideration and all other material terms and conditions of such sale,
and (v) the anticipated time and place of the closing of the purchase
and sale (a “Drag-Along Closing”).

 

(b)                                            
Conditions
to Drag-Along.  Upon delivery of a Drag-Along Notice, the Employee
shall have the obligation to sell and transfer to the Third-Party Buyer at the
Drag-Along Closing the percentage of the Employee’s Shares equal to the
percentage of the shares of Common Stock owned by the Investor that are to be
sold to the Third-Party Buyer (the “Applicable Percentage”) on the same
terms as the Investor, but only if the Investor sells and transfers the
Applicable Percentage of the Investor’s shares of Common Stock to the
Third-Party Buyer at the Drag-Along Closing.

 

(c)                                             
Power
of Attorney Custodian, Etc.  By entering into this
Agreement and purchasing the Shares, the Employee hereby appoints the Investor
and any Affiliates of the Investor so designated by the Investor the Employee’s
true and lawful attorney-in-fact and custodian, with full power of substitution
(the “Custodian”), and authorizes the Custodian to take such actions as
the Custodian may deem necessary or appropriate to effect the sale and transfer
of the Applicable Percentage of the Employee’s Shares to

 

8

 

the Third-Party Buyer, upon receipt
of the purchase price therefor at the Drag-Along Closing, free and clear of all
security interests, liens, claims, encumbrances, charges, options, restrictions
on transfer, proxies and voting and other agreements of whatever nature, and to
take such other action as may be necessary or appropriate in connection with
such sale or transfer, including consenting to any amendments, waivers,
modifications or supplements to the terms of the sale (provided that the
Investor also so consents, and, to the extent applicable, sells and transfers
the Applicable Percentage of its shares of Common Stock on the same terms as so
amended, waived, modified or supplemented) and instructs the Secretary of the
Company (or other person holding any certificates for the Shares) to deliver to
the Custodian certificates representing the Applicable Percentage of the Employee’s
Shares, together with all necessary duly-executed stock powers.  If so
requested by the Investor or the Company, the Employee will confirm the
preceding sentence in writing in form and substance reasonably satisfactory to
the Investor promptly upon receipt of a Drag-Along Notice (and in any event no
later than 10 days after receipt of the Drag-Along Notice).  Promptly
after the Drag-Along Closing, the Custodian shall give notice thereof to the
Employee and shall remit to the Employee the net proceeds of such sale (reduced
by any amount required to be held in escrow pursuant to the terms of the
purchase and sale agreement and any other expenses).

 

(d)                                            
The
Investor a Third-Party Beneficiary; Remedies.  The Employee acknowledges
and agrees that the Investor is an intended third-party beneficiary of this
Section 7, as if it were a party to this Agreement directly. 
Following a breach or a threatened breach by the Employee of the provisions of
this Section 7, the Investor may obtain an injunction granting it specific
performance of the Employee’s obligations under this Section 7. 
Whether or not the Investor obtains such an injunction, and whether or not the
transaction with respect to which the Drag-Along Notice relates is consummated,
following such a breach or threatened breach by the Employee the Company shall
have the option to purchase any or all of the Employee’s Shares at a purchase
price per Share equal to the lesser of the price at which the Employee purchased
such Shares from the Company or the per share consideration payable pursuant to
the Drag-Along Offer.  The preceding sentence shall not limit the
Company’s or the Investor’s right to recover damages (or the amount thereof)
from the Employee.

 

(e)                                             
Expiration
on a Public Market.  The provisions of this Section 7 shall
terminate and cease to have further effect upon the establishment of the Public
Market, provided that such termination shall not affect any right to receive or
seek damages or purchase Shares pursuant to Section 7(d).

 

9

 

Section 8.                                          
Rights
of First Refusal

 

(a)                                             
Notice.  At any time
prior to a Public Offering, except as otherwise expressly provided in this
Agreement, the Employee may not Transfer any shares other than pursuant to a
Qualified Offer and if the Employee desires to accept a Qualified Offer, the
Employee shall first give at least 60 days’ prior written notice to the Company
and the Investor:

 

(i)                                    
designating
the number of Shares proposed to be Transferred (the “Offered Shares”);

 

(ii)                                 
naming
the prospective acquiror of such Shares; and

 

(iii)                              
specifying
the price at (the “Offer Price”) and terms upon which (the “Offer
Terms”) the Employee desires to Transfer such Shares.

 

(b)                                            
Right
of the Company. During the 30-day period following the Company’s receipt
of the Employee’s notice pursuant to Section 8(a) (the “First Refusal
Period”), the Company shall have the right to purchase from the Employee
all or any portion of the Offered Shares, at the Offer Price and on the Offer
Terms.  The Company shall use its reasonable efforts to act as promptly as
practicable following receipt of the notice from the Employee to determine
whether it shall elect to exercise such right.

 

(c)                                             
Right
of the Investor.  If the Company fails to exercise it’s right to
purchase all of the Offered Shares within the First Refusal Period, the
Investor shall have the right to purchase all or any portion remaining of the
Offered Shares specified in such notice, at the Offer Price and on the Offer
Terms, at any time during the period beginning on the earlier of (x) the
end of the First Refusal Period and (y) the date of receipt by the
Investor of written notice that the Company has elected not to exercise its
rights under this Section 8(b) and ending 60 days after the Investor’s
receipt of the Employee’s notice pursuant to Section 8(a) (the “Second
Refusal Period”).

 

(d)                                            
Manner
of Exercise.  The rights provided hereunder shall be exercised by
written notice to the Employee given at any time during the applicable
period.  If such right is exercised, the Employee may not sell pursuant to
the Qualified Offer any of the Shares that the Company or the Investor have
elected to purchase and the Company or the Investor, as the case may be, shall
deliver to the Employee cash, check or other readily-available funds for the
Offer Price, against delivery of certificates or other instruments representing
the Shares so purchased, appropriately endorsed

 

10

 

by the Employee, and free and clear
of all security interests, liens, claims, encumbrances, charges, etc.

 

(e)                                             
Additional
Requirements for Sale.  Subject to Section 4(b) if neither the
Company nor the Investor shall have exercised its rights under this
Section 8, then the Employee may Transfer the Offered Shares to (but only
to) the intended purchaser named in his notice to the Company and the Investor
at the Offer Price and on the Offer Terms; provided that:

 

(i)                                    
such
Transfer must be consummated within 30 days following the expiration of the
Second Refusal Period; and

 

(ii)                                 
the
intended purchaser must first agree in writing in form and substance
satisfactory to the Company to make and be bound by the representations and
warranties set forth in Section 3(b), Section 3(e), Section 3(f)
and to agree to and be bound by the covenants and other restrictions set forth
in this Agreement (including, but not limited to, Section 4,
Section 6, Section 7, Section 8 and Section 11) and such other
covenants or restrictions as the Company shall reasonably request (it being
understood that the Employee shall not have any of the benefits provided for in
Section 5).

 

Section 9.                                          
Holdback.  If the Company
files a registration statement under the Securities Act with respect to an
underwritten public offering of any shares of its capital stock, the Employee
shall not effect any public sale (including a sale under Rule 144 under the
Securities Act or other similar provision of applicable law) or distribution of
any shares of the Common Stock, other than as part of such underwritten public
offering, during the 20 days prior to and the 180 days after the effective date
of such registration statement.

 

Section 10.                                    
Certain
Definitions.

 

(a)                                             
As
used in this Agreement, the following terms shall have the meanings set forth
below:

 

“Affiliate” has the meaning given in the Stock
Incentive Plan.

 

“Applicable Percentage” has the meaning given
in Section 7(b).

 

“Board” has the meaning given in the Stock
Incentive Plan.

 

“Cause” has the meaning given in the Stock
Incentive Plan.

 

“Closing” has the meaning given in
Section 2(a).

 

11

 

“Common Stock” means the common stock, par
value $.01 per share, of the Company.

 

“Company” means CDRV Investors, Inc., a
Delaware corporation, provided that for purposes of determining the
status of Employee’s employment with the “Company,” such term shall include the
Company and its Subsidiaries.

 

“Custodian” has the meaning given in
Section 7(c).

 

“Determination Date” means the effective date
of the Employee’s termination of employment.

 

“Disability” has the meaning given in the Stock
Incentive Plan.

 

“Drag-Along Closing” has the meaning given in
Section 7(a).

 

“Drag-Along Notice” has the meaning given in
Section 7(a).

 

“Employee” means the purchaser of the Shares
whose name is set forth on the signature page of this Agreement; provided
that following such person’s death, the “Employee” shall be deemed to include
such person’s beneficiary or estate and following such person’s Disability, the
“Employee” shall be deemed to include any legal representative of such person.

 

“Exchange Act” means the United States
Securities Exchange Act of 1934, as amended, or any successor statute, and the
rules and regulations thereunder that are in effect at the time, and any
reference to a particular section thereof shall include a reference to the
corresponding section, if any, of any such successor statute, and the rules and
regulations thereunder.

 

“Fair Market Value” has the meaning given in
the Stock Incentive Plan.

 

“Financing Agreements” has the meaning given in
Section 5(f).

 

“First Installment Amount” has the meaning
given in Section 5(d).

 

“First Option Period” has the meaning given in
Section 5(a)

 

“First Refusal Period” has the meaning given in
Section 8(b).

 

12

 

“Investor” means the “CD&R Fund” as such
term is defined in the Stock Incentive Plan.

 

“Offer Price” has the meaning given in
Section 8(a).

 

“Offer Terms” has the meaning given in
Section 8(a).

 

“Offered Shares” has the meaning given in
Section 8(a).

 

“Person” means any natural person, firm,
partnership, limited liability company, association, corporation, company,
trust, business trust, governmental authority or other entity.

 

“Public Market” shall be deemed to have been
established at such time as 30% of the Common Stock (on a fully diluted basis)
has been sold to the public pursuant to an effective registration statement
under the Securities Act, pursuant to Rule 144 or pursuant to a public offering
outside the United States.

 

“Public Offering” means an underwritten public
offering of the Common Stock led by at least one underwriter of nationally
recognized standing.

 

“Purchase Price” has the meaning given in
Section 5(c).

 

“Qualified Offer” means an offer to purchase
Shares from a single purchaser and which must be in writing and for cash or
other immediately-available funds, be irrevocable by its terms for at least 60
days and be a bona fide offer as determined in good faith by the Board or the
Compensation Committee thereof.

 

“Retirement” means the Employee’s retirement
from active service on or after the Employee reaches normal retirement age.

 

“Rule 144” means Rule 144 under the Securities
Act (or any successor provision thereto).

 

“Sale Notice” has the meaning given in
Section 6(a).

 

“Second Option Period” has the meaning given in
Section 5(a).

 

“Second Refusal Period” has the meaning given
in Section 8(c).

 

13

 

“Securities Act” means the United States
Securities Act of 1933, as amended, or any successor statute, and the rules and
regulations thereunder that are in effect at the time and any reference to a
particular section thereof shall include a reference to the corresponding
section, if any, of any such successor statute, and the rules and regulations
thereunder.

 

“Shares” has the meaning given in
Section 1(a).

 

“Subsidiary” has the meaning given in the Stock
Incentive Plan.

 

“Third-Party Buyer” means any Person other than
the Company or any of its Subsidiaries, any employee benefit plan of the
Company or any of its Subsidiaries, the Investor or any of its co-investors, or
any Affiliates of the foregoing.

 

“Transfer” means any sale, assignment,
transfer, pledge, encumbrance, or other direct or indirect disposition
(including a hedge or other derivative transaction).

 

“Unforeseen Personal Hardship” means financial
hardship arising from (i) extraordinary medical expenses or other
expenses directly related to illness or disability of the Employee, a member of
the Employee’s immediate family or one of the Employee’s parents or (ii)
payments necessary or required to prevent the eviction of the Employee from the
Employee’s principal residence or foreclosure on the mortgage on that
residence.

 

Section 11.                                    
Miscellaneous.

 

(a)                                             
Authorization
to Share Personal Data.  The Employee authorizes any Affiliate of the
Company that employs the Employee or that otherwise has or lawfully obtains
personal data relating to the Employee to divulge such personal data to the
Company if and to the extent appropriate in connection with this Agreement or
the administration of the Stock Incentive Plan.

 

(b)                                            
Unforeseen
Personal Hardship.  If the Employee, prior to a Public Offering and
still in the employment of the Company, experiences Unforeseen Personal
Hardship, the Board will carefully consider any request by the Employee that
the Company repurchase the Employee’s Shares at a price determined in
accordance with Section 5(c) hereof, but the Company shall have no
obligation to do so.

 

14

 

(c)                                             
Notices.  All notices
and other communications required or permitted to be given under this Agreement
shall be in writing and shall be deemed to have been given if delivered
personally or sent by certified or express mail, return receipt requested,
postage prepaid, or by any recognized international equivalent of such
delivery, to the Company, the Investor or the Employee, as the case may be, at
the following addresses or to such other address as the Company, the Investor
or the Employee, as the case may be, shall specify by notice to the others:

 

(i)                                    
if
to the Company, to it at:

 

c/o VWR International, Inc.

1310 Goshen Parkway 

P.O. Box 2656

West Chester, Pennsylvania 19380

Attention:  General Counsel

Fax: 610-701-9896

 

(ii)                                 
if
to the Employee, to the Employee at his or her most recent address as shown on
the books and records of the Company or Subsidiary employing the Employee.

 

(iii)                              
if
to the Investor, to it:

 

c/o Clayton, Dubilier & Rice, Inc.

375 Park Avenue, 18th Floor

New York, New York 10152

Attention:  Richard Schnall 

Fax: (212) 407-5252

 

All such notices and communications shall be deemed to
have been received on the date of delivery if delivered personally or on the
third business day after the mailing thereof.  Copies of any notice or
other communication given under this Agreement shall also be given to:

 

Clayton, Dubilier & Rice, Inc.

375 Park Avenue, 18th Floor

New York, New York 10152

Fax:  (212) 407-5252

Attention:  Richard Schnall

 

15

 

and

 

Debevoise & Plimpton LLP

919 Third Avenue 

New York, New York 10022 

Fax:  (212) 909-6836

Attention:  Franci J. Blassberg

 

(d)                                            
Binding
Effect; Benefits.  This Agreement shall be binding upon and inure to the
benefit of the parties to this Agreement and their respective successors and
assigns.  Except as otherwise provided herein with respect to the
Investor, nothing in this Agreement, express or implied, is intended or shall
be construed to give any person other than the parties to this Agreement or
their respective successors or assigns any legal or equitable right, remedy or
claim under or in respect of any agreement or any provision contained herein.

 

(e)                                             
Waiver;
Amendment.

 

(i)                                    
Waiver.  Any party
hereto may by written notice to the other parties (A) extend the time
for the performance of any of the obligations or other actions of the other
parties under this Agreement, (B) waive compliance with any of the
conditions or covenants of the other parties contained in this Agreement, and (C)
waive or modify performance of any of the obligations of the other parties
under this Agreement, provided that any waiver of the provisions of
Section 4 through and including Section 8 or this Section 11(e)
must be consented to in writing by the Investor.  Except as provided in
the preceding sentence, no action taken pursuant to this Agreement, including,
but not limited to, any investigation by or on behalf of any party, shall be
deemed to constitute a waiver by the party taking such action of compliance
with any representations, warranties, covenants or agreements contained
herein.  The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any preceding
or succeeding breach and no failure by a party to exercise any right or
privilege hereunder shall be deemed a waiver of such party’s rights or
privileges hereunder or shall be deemed a waiver of such party’s rights to
exercise the same at any subsequent time or times hereunder.

 

(ii)                                 
Amendment.  This Agreement
may be amended, modified or supplemented only by a written instrument executed
by the

 

16

 

Employee and the Company, provided
that the provisions of Section 4 through Section 9 and this
Section 11 may be amended by vote of a majority (by number of shares of
Common Stock) of the Employee’s who hold shares of Common Stock purchased
pursuant to a stock subscription agreement having comparable provisions; provided,
further, that any amendment adversely affecting the rights of the Investor
hereunder must be consented to by the Investor.

 

(f)                                               
Assignability.  Neither this
Agreement nor any right, remedy, obligation or liability arising hereunder or
by reason hereof shall be assignable by the Company or the Employee without the
prior written consent of the other parties, provided that the Investor may
assign from time to time all or any portion of its rights under this Agreement,
to one or more persons or other entities designated by it.

 

(g)                                            
Applicable
Law.  This Agreement shall be governed in all respects, including,
but not limited to, as to validity, interpretation and effect, by the internal
laws of the State of New York, without reference to principles of conflict of
law that would require application of the law of another jurisdiction.

 

(h)                                            
Waiver
of Jury Trial.  Each party hereby waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in
respect of any suit, action or proceeding arising out of this Agreement or any
transaction contemplated hereby.  Each party (a) certifies that no
representative, agent or attorney of any other party has represented, expressly
or otherwise, that such other party would not, in the event of litigation, seek
to enforce the foregoing waiver and (b) acknowledges that it and the
other parties have been induced to enter into the Agreement by, among other
things, the mutual waivers and certifications in this Section 11(h).

 

(i)                                                
Section and
Other Headings, etc.  The section and other headings contained in
this Agreement are for reference purposes only and shall not affect the meaning
or interpretation of this Agreement.

 

(j)                                                
Counterparts.  This Agreement
may be executed in any number of counterparts, each of which shall be deemed to
be an original and all of which together shall constitute one and the same
instrument.

 

17

 

IN WITNESS WHEREOF, the
Company and the Employee have executed this Agreement as of the date first
above written.

 

 

	
   

  	
   

  	
  CDRV INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  THE EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  	
  «Name»

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  as Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address of the
  Employee:

  
	
   

  	
   

  
	
   

  	
  «Address»

  
	
   

  	
   

  
	
  Total Number of Shares

  	
   

  
	
  of Common Stock to be

  	
   

  
	
  Purchased:

  	
  «Shares»

  
	
   

  	
   

  
	
  Total Purchase

  	
   

  
	
  Price:

  	
  $«Share_Amount»

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

18

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