Document:

Executive Deferred Compensation Plan

 Exhibit 10.5 
  
 OWENS & MINOR, INC. 
  
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  
 Effective July 1, 2004 
  

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  
 TABLE OF CONTENTS 
  

							
	 Section

	  	 	  	Page

	PURPOSE	  	 	  	1
			
	 	  	ARTICLE I    DEFINITIONS	  	1
	 	  	1.01.	  	Account	  	1
	 	  	1.02.	  	Affiliate	  	1
	 	  	1.03.	  	Beneficiary or Beneficiaries	  	1
	 	  	1.04.	  	Beneficiary Designation Form	  	1
	 	  	1.05.	  	Board	  	1
	 	  	1.06.	  	[Cash Bonus	  	1
	 	  	1.07.	  	Change of Control	  	2
	 	  	1.08.	  	Code	  	2
	 	  	1.09.	  	Committee	  	3
	 	  	1.10.	  	Company	  	3
	 	  	1.11.	  	Compensation	  	3
	 	  	1.12.	  	Control Change Date	  	3
	 	  	1.13.	  	Deferral Election Form	  	3
	 	  	1.14.	  	Deferral Year	  	3
	 	  	1.15.	  	Deferred Benefit	  	3
	 	  	1.16.	  	Disability or Disabled	  	3
	 	  	1.17.	  	Distribution Election Form	  	3
	 	  	1.18.	  	Election Date	  	4
	 	  	1.19.	  	Eligible Employee	  	4
	 	  	1.20.	  	Investment Options	  	4
	 	  	1.21.	  	Participant	  	4
	 	  	1.22.	  	Plan	  	4
	 	  	1.23.	  	Salary	  	4
	 	  	1.24.	  	Terminate, Terminating, or Termination	  	5
	 	  	ARTICLE II    PARTICIPATION	  	6
	 	  	ARTICLE III    Deferral Elections	  	7
	 	  	3.01.	  	Eligibility To Make Deferral Election	  	7
	 	  	3.02.	  	Effectiveness of Deferral Election	  	7
	 	  	3.03.	  	Compensation That May Be Deferred	  	7
	 	  	3.04.	  	Deferral Election Irrevocable	  	7
	 	  	3.05.	  	Rejection of Deferral Election	  	8
	 	  	3.06.	  	Effect of No Election	  	8
	 	  	ARTICLE IV    Crediting deferrals to accounts	  	9
	 	  	ARTICLE V    investment MEASURES	  	10
	 	  	5.01.	  	Investment Subaccounts	  	10

  

 (i) 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

							
	 	  	5.02.	  	Investment Options	  	10
	 	  	5.03.	  	Investment Direction	  	10
	 	  	5.04.	  	New Investment Directions	  	10
	 	  	5.05.	  	Investment Transfers	  	10
	 	  	5.06.	  	Crediting Earnings & Losses	  	11
	 	  	ARTICLE VI	  	vesting	  	12
	 	  	ARTICLE VII	  	distributions	  	13
	 	  	7.01.	  	Distribution Elections	  	13
	 	  	7.02.	  	Commencement of Distributions	  	13
	 	  	7.03.	  	Medium of Payment	  	14
	 	  	7.04.	  	Form of Payment	  	14
	 	  	7.05.	  	Changing Distribution Election	  	14
	 	  	7.06.	  	Hardship Distributions	  	15
	 	  	ARTICLE VIII    company’s obligation	  	16
	 	  	ARTICLE IX    CONTROL BY PARTICIPANT	  	17
	 	  	ARTICLE X    amendment or termination	  	18
	 	  	ARTICLE XI    administration	  	19
	 	  	11.01.	  	Committee	  	19
	 	  	11.02.	  	Indemnification	  	19
	 	  	11.03.	  	Eligibility Determinations	  	19
	 	  	11.04.	  	Information to Committee	  	19
	 	  	11.05.	  	Notices	  	19
	 	  	11.06.	  	Waiver	  	19
	 	  	11.07.	  	Binding Nature of Plan	  	20
	 	  	11.08.	  	Construction	  	20
			
	EXHIBIT I	  	INVESTMENT OPTIONS	  	 

  

 (ii) 

 PURPOSE 
  
 The Owens & Minor, Inc. Executive Deferred Compensation Plan (the “Plan”) is intended to constitute a deferred
compensation plan for a select group of management and highly compensated employees of the Company and its Affiliates and directors of the Company as those terms are used in the Employee Retirement Income Security Act of 1974. The Plan will be
administered and interpreted in a manner that is consistent with that intent. 

 DEFINITIONS 
  
 The following definitions apply to this Plan and to the Deferral Election Forms and Beneficiary Designation Forms.

  
 Account 
  
 Account means an unfunded deferred compensation account established to record a Participant’s interest in the Plan. The
term Account encompasses the subaccounts established for each Investment Option. 
  
 Affiliate 
  
 Affiliate means 
  
 any entity that is a member of a controlled group of corporations as
defined in Code section 1563(a), determined without regard to Code sections 1563(a)(4) and 1563(e)(3)(c), of which the Company is a member according to Code section 414(b); or 
  
 an unincorporated trade or business that is under common control with the Company as determined according to Code section
414(c). 
  
 Beneficiary or Beneficiaries 
  
 Beneficiary or Beneficiaries means a person or persons or other entity
designated on a Beneficiary Designation Form by a Participant as allowed in Article 0 of this Plan to receive a Deferred Benefit payment. If there is no valid designation by the Participant, or if the designated Beneficiary or Beneficiaries fail to
survive the Participant or otherwise fail to take the Deferred Benefit, the Participant’s Beneficiary is the first of the following who survives the Participant: a Participant’s spouse (the person legally married to the Participant when
the Participant dies); the Participant’s children in equal shares; and the Participant’s estate. 
  
 Beneficiary Designation Form 
  
 Beneficiary Designation Form means a form acceptable to the Committee used by a Participant according to this Plan to name his Beneficiary or Beneficiaries who will receive all Deferred Benefit and payments under this Plan if he dies.

  
 Board 
  
 Board means the board of directors of the Company. 
  
 Cash Bonus 
  
 Cash Bonus, with respect to a Deferral Year, means any bonus or other similar payment from the Company or an Affiliate that is (i) paid to an Eligible
Employee in cash, and (ii) is based on the performance of the Company, an Affiliate, the Eligible Employee, or any of them, during the Deferral Year, even if paid after the close of the Deferral Year. 
  

 1 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Change of Control 
  
 Change of Control means any of the following events: 
  
 Any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the combined
voting power of the Company’s then outstanding securities; 
  
 During any period of two consecutive years (not including any period prior to the effective date of this Plan), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated
by a person who has entered into an agreement with the Company to effect a transaction described in clause (a), (c) or (d) of this Section) whose election by the Board of nomination for election by the Company’s stockholders was approved by a
vote of a majority of the directors then still in office who either (x) were directors at the beginning of such period or (y) were so elected or nominated with such approval, cease for any reason to constitute at least a majority of the Board;

  
 The stockholders of the Company approve a merger or
consolidation of the Company with any other Company, other than (x) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (y) a
merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquired more than 20% of the combined voting power of the Company’s then
outstanding securities; or 
  
 The stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  
 Code 
  
 Code means the Internal Revenue Code of 1986, as amended. 
  

 2 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Committee 
  
 Committee means the Compensation and Benefits Committee of the Board. 
  
 Company 
  
 Company means Owens & Minor, Inc. and any successor business by merger, purchase, or otherwise that maintains the Plan. 
  
 Compensation 
  
 Compensation means an Eligible Employee’s aggregate combined Salary and Cash Bonus for a Deferral Year. 
  
 Control Change Date 
  
 Control Change Date means the date on which a Change of Control occurs. If a Change of Control occurs on account of a series
of transactions, the “Control Change Date” is the date of the last of such transactions. 
  
 Deferral Election Form 
  
 Deferral Election Form means a document governed by the provisions of Articles 0, 0 and, 0 of this Plan, including (i) the portion that is the Distribution Election Form and (ii) the related Beneficiary Designation Form that applies to all
of that Participant’s Deferred Benefits and under the Plan. 
  
 Deferral
Year 
  
 Deferral Year means a calendar year for which a
Participant has an operative Deferral Election Form. 
  
 Deferred Benefit

  
 Deferred Benefit means the benefit payable under the
Plan. 
  
 Disability or Disabled 
  
 Disability or Disabled means that a Participant is unable to perform the
material duties of his position with the Company or an Affiliate on account of a mental or physical condition or impairment as determined by the Committee in its sole and absolute discretion. 
  
 Distribution Election Form 
  
 Distribution Election Form means that part of a Deferral Election Form used
by a Participant according to this Plan to establish the duration of deferral and the frequency of payments of a Deferred Benefit. If a Deferred Benefit has no Distribution Election Form that is operative according to Article III, distribution of
that Deferred Benefit is governed by Article VII. 
  

 3 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Election Date 
  
 Election Date means the date established by this Plan as the date before which an Eligible Employee must submit a valid Deferral Election Form to the
Committee. For each Deferral Year, (i) the Election Date for Salary deferral is December 31 of the preceding calendar year and (ii) the Election Date for Cash Bonus deferral is fifteen days before the end of the period for which performance is
measured in determining the amount of a Cash Bonus or, if earlier, fifteen days before the amount of Cash Bonus is determined. However, for an individual who becomes an Eligible Employee during a Deferral Year, the Election Date is the thirtieth day
following the date that he becomes an Eligible Employee. In addition, for calendar year 2004, the Election Date is the thirtieth day following the date the Plan is adopted by the Board. 
  
 Eligible Employee 
  
 Eligible Employee means an employee of the Company or an Affiliate who is a member of a select group of management or a highly compensated employee (as
such terms are used in Section 201(2) of the Employee Retirement Income Security Act of 1974), and who is designated by the Committee as eligible to elect a Deferred Benefit under Article III. Once an individual is designated by the Committee as
eligible to elect a Deferred Benefit under Article III, such employee shall continue to be an Eligible Employee until the date he is no longer a member of management or a highly compensated employee or the date the Committee declares he is no longer
eligible to elect a Deferred Benefit. 
  
 Investment Options 
  
 Investment Options shall mean the investment options shown on Exhibit I, or
otherwise announced by the Committee from time to time. 
  
 Participant

  
 Participant, with respect to any Deferral Year, means an
Eligible Employee whose Deferral Election Form is operative for that Deferral Year according to Article III of this Plan. 
  
 Plan 
  
 Plan means the Owens & Minor, Inc. Executive Deferred Compensation Plan. 
  
 Salary 
  
 Salary means an
Eligible Employee’s base salary and does not include bonuses or other payments from the Company or an Affiliate that are not made on a regular basis. 
  

 4 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Terminate, Terminating, or Termination 
  
 Terminate, Terminating, or Termination, with respect to a Participant, mean cessation of an employment relationship with the
Company or an Affiliate whether by death, Disability, retirement or severance for any other reason. Unless the Committee determines otherwise in it sole discretion, Terminate, Terminating, or Termination do not include situations where the
Participant transfers employment among the Company and one of its Affiliates. 
  

 5 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 PARTICIPATION 
  
 An Eligible Employee becomes a Participant for any Deferral Year by filing a valid Deferral Election Form according to
Article III on or before the applicable Election Date but only if his Deferral Election Form is operative according to Article III. An Eligible Employee who becomes a Participant will continue to be a Participant as long as an Account is being
maintained (or is required to be maintained under the terms of the Plan) for him or her. 
  

 6 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Deferral Elections 
  
 Eligibility To Make Deferral Election 
  
 An individual may elect a Deferred Benefit for any Deferral Year if he is an Eligible Employee at the beginning of that Deferral Year or becomes an
Eligible Employee during that Deferral Year. Each Eligible Employee will be provided a Deferral Election Form by the Committee before the first day of a Deferral Year and each individual who becomes an Eligible Employee will be provided a Deferral
Election Form by the Committee within thirty days after becoming an Eligible Employee. 
  
 Effectiveness of Deferral Election 
  
 A Deferral
Election Form is effective when it is completed, signed by the electing Eligible Employee and received by the Committee. A single Deferral Election Form may apply to each element of an Eligible Employee’s Compensation (e.g., Salary and
Cash Bonus) for a Deferral Year. Alternatively, an Eligible Employee may have more than one Deferral Election Form for a Deferral Year; provided, however, that only one Deferral Election Form will be effective with respect to a particular element of
the Eligible Employee’s Compensation. 
  
 Compensation That May Be
Deferred 
  
 A Deferral Election Form is operative,
i.e., it may result in the deferral of Compensation, only with respect to Compensation with an Election Date that will occur after the date that the Deferral Election Form is effective under Section 0. 
  
 Subject to the requirements of Section 0, an Eligible Employee may elect
to defer: 
  
 Up to 50% of Salary (in
multiples of 1%); and 
  
 Up to 100% of
Cash Bonus (in multiples of 1%). 
  
 Deferral Election Irrevocable

  
 An Eligible Employee may not revoke a Deferral Election
Form as to an element of Compensation after the applicable Election Date. Any revocation before the applicable Election Date is the same as a failure to submit a Deferral Election Form or a Distribution Election Form as to the particular element or
elements of Compensation covered by the revocation. Any writing signed by an Eligible Employee expressing an intention to revoke his Deferral Election Form, in whole or in part, and delivered to the Committee before the close of business on the
applicable Election Date is a revocation. 
  

 7 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Rejection of Deferral Election 
  
 If it does so before the applicable Election Date, the Committee may reject any Deferral Election Form, in whole or in
part, and the Committee is not required to state a reason for any rejection. The Committee’s rejections must be made on a uniform basis with respect to similarly situated Participants. If the Committee rejects a Deferral Election Form, the
Participant must be paid the Compensation he would then have been entitled to receive if he had not submitted the rejected Deferral Election Form. 
  
 Effect of No Election 
  
 An Eligible Employee who has not submitted a valid Deferral Election Form to the Committee on or before the applicable Election Date may not defer any
Compensation for the Deferral Year under this Plan. 
  

 8 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Crediting deferrals to accounts 
  
 Compensation that is deferred under this Plan shall be credited to the Participant’s Account as follows: 
  
 Salary deferrals shall be credited to the
Participant’s Account as of the last day of the payroll period in which the deferred Salary would have been paid to the Participant; and 
  
 Cash Bonus deferrals shall be credited to the Participant’s Account as of the date such amount would have been paid to the
Participant. 
  

 9 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 investment MEASURES 
  
 Investment Subaccounts 
  
 The Committee shall establish investment subaccounts within the Account of each Participant. The investment subaccounts shall be established only for
bookkeeping purposes. An investment subaccount shall be established for each Investment Option. 
  
 Investment Options 
  
 The
Investment Options shall be selected by the Committee and identified on Exhibit I to the Plan. The Committee may change, delete or modify any of the Investment Options without the necessity of amending the Plan. 
  
 Investment Direction 
  
 At the time an Eligible Employee first becomes a Participant, the Participant shall choose one or more of the Investment
Options in integral multiples of 10%. Such Investment Options will be used as a measure of the investment performance of the Participant’s Account. An investment direction shall remain in effect with respect to all future deferrals until a new
investment direction is made by the Participant in accordance with Section 0. To the extent a Participant fails to select an Investment Option, he shall be deemed to have elected the Investment Option designated as the default investment measure on
Exhibit I. 
  
 New Investment Directions 
  
 Once each calendar quarter a Participant may change the Investment Options
for future deferrals credited to his Account in accordance with procedures established by the Committee. An election to change an Investment Option shall be made on forms designated for this purpose by the Committee and shall specify the Investment
Options that will be used to measure the investment performance of future deferrals in integral multiples of 10%. Until a Participant delivers a new election form to the Committee, his prior Investment Option selection shall control the measure of
investment performance of his Account. 
  
 Investment Transfers 

 
 A Participant or a Beneficiary (after the death of the Participant), may
transfer to one or more different Investment Options all or a part (in integral multiples of 10%), of the amount credited to the Participant under an Investment Option. The transfer election shall be made on forms designated for this purpose by the
Committee. A Participant may transfer among Investment Options in accordance with procedures established by the Committee; provided, however, that a Participant may not reallocate his Account among the Investment Options more than once each calendar
quarter. 
  

 10 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Crediting Earnings & Losses 
  
 Earnings and losses will be credited to, or debited from, a Participant’s Account as if such account balances were
invested and the earnings reinvested in the Investment Options selected by the Participant (or if no Investment Options were selected for a portion of the Participant’s accounts, as if such account balances were invested according to the last
sentence of Section 0) in the manner set forth in the following sentence. As of the last business day of each month in which any amount remains credited to the Account of a Participant, each portion of such Account deemed invested in a particular
Investment Option shall either be credited or debited with an amount equal to the amount determined by multiplying the balance of such portion of such account as of the last day of the preceding month by the return rate for that month for the
applicable Investment Option. As to any amount distributed or transferred from an Investment Option since the last day of the preceding month, the Company shall cease crediting and debiting the Participant’s subaccount for that Investment
Option with earnings and losses on the last day of the month preceding the date of distribution. 
  

 11 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 vesting 
  
 A Participant’s interest in his Account is always vested and nonforfeitable. 
  

 12 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 distributions 
  
 Distribution Elections 
  
 Each Distribution Election Form is part of the Deferral Election on which it appears or to which it states it is related. The Committee may allow a
Participant to file one Distribution Election Form for all of his Deferred Benefits. 
  
 Commencement of Distributions 
  
 Except as
provided in the following subsections (b), (c) and (d), payments to a Participant shall begin on the date or event he elects on his Distribution Election Form or in accordance with the last sentence of this Section 0. A Participant may elect on his
Distribution Election Form that payments will begin on the earliest of one or more of the following dates or events: 
  
 on the last day of the month in which his Termination occurs, without regard to his age; 
  
 on the last day of the month in which the later of his
Termination occurs or he attains a specified age; 
  
 on the last day of the month in which the Participant attains a specified age (which is not less than the Participant’s age one year after the applicable Election Date), without regard to whether there has been a Termination;

  
 on the last day of a specified month
in a specified year (which is at least one year after the applicable Election Date), without regard to whether there has been a Termination; 
  
 on a Control Change Date; or 
  
 on the occurrence of any other event or date selected by the Committee for this purpose and listed on a Distribution Election Form.

  
 Any Deferred Benefits for which a Participant has not filed a valid
Distribution Election Form shall be paid to the Participant commencing on the earlier of the last day of the month in which the Participant attains age sixty-five or the last day of the month in which his Termination occurs. 
  

 13 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 If a Participant Terminates as a result of Disability, his Deferred Benefits will be paid to the
Participant in installments over a period of ten years commencing on the date his Disability is certified by the Committee unless the Committee, in its sole discretion, approves a longer or shorter payment period. If, after his Termination as a
result of Disability, the Participant recovers before the balance in his Account is exhausted, his distributions will be suspended and any remaining Deferred Benefits will be paid in accordance with his Distribution Election Form and this Article 0.

  
 Upon the death of a Participant, the balance in his
Account will be paid to his Beneficiary in a lump sum on the last day of the month in which the Participant’s death occurs, unless the Beneficiary requests a different distribution schedule or form of payment and the request is received and
approved by the Committee in its discretion before the payment is made to the Beneficiary. 
  
 The balance of the Participant’s Account shall be paid to the Participant (or his Beneficiary) in a lump sum within thirty days after a Control Change Date unless the Participant has filed a valid Distribution
Election Form or, in the case of a Beneficiary, the Committee has approved a different schedule or form of payment under subsection (c). 
  
 Medium of Payment 
  
 All distributions from the Plan shall be paid in cash. 
  
 Form of Payment 
  
 Except for payments triggered by a Participant’s Disability (which are governed by Section 0), Deferred Benefits shall be paid in a lump sum unless
the Participant’s Distribution Election Form specifies installment payments over a period of up to fifteen years. If permitted on a Distribution Election Form, a Participant may elect one form of distribution if the payment begins on particular
dates or events and another form of distribution if the payment begins on other dates or events. Installment payments shall reduce the Participant’s interest under each Investment Option pro rata. 
  
 Changing Distribution Election 
  
 A Participant may amend his Distribution Election Form with respect to the
commencement of distributions, the form of distributions or both if (i) the amendment is approved by the Committee in its discretion before the calendar year in which payments are scheduled to begin (or, with respect to unpaid installments, before
the calendar year in which the installment or installments are scheduled to be paid) and (ii) the change in commencement date, form of payment or both conforms to the requirements of the Plan. 
  

 14 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Hardship Distributions 
  
 At its sole discretion and at the request of a Participant before or after the Participant’s Termination, or at the
request of any of the Participant’s Beneficiaries after the Participant’s death, the Committee may accelerate and pay all or part of a Participant’s Deferred Benefits under this Plan. Accelerated distributions may be allowed only in
the event of a financial emergency beyond the Participant’s or Beneficiary’s control and only if disallowance of a distribution would create a severe hardship for the Participant or Beneficiary. An accelerated distribution must be limited
to the amount determined by the Committee to be necessary to satisfy the financial emergency. A Deferred Benefit is adjusted for a distribution under this section by reducing the Participant’s Account balance by the amount of the distribution.
A distribution under this section shall reduce the Participant’s or Beneficiary’s interest under each Investment Option pro rata. 
  

 15 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 company’s obligation 
  
 The Plan is unfunded. A Deferred Benefit is at all times a mere contractual obligation of the Company. A Participant and his
Beneficiaries have no right, title, or interest in the Deferred Benefits or any claim against them. All Deferred Benefits will be satisfied solely out of the general corporate assets of the Company, which shall remain subject to the claims of its
creditors and the creditors of any Affiliate that is an employer of a Participant. The Company may establish one or more trusts under which payments may be made that will satisfy the Company’s obligations under this Plan to the extent of such
payments. The assets of any such trusts will remain subject to the claims of the creditors of the Company and any Affiliate that is an employer of a Participant. 
  

 16 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 CONTROL BY PARTICIPANT 
  
 A Participant has no control over Deferred Benefits except according to his Deferral Election Forms, his Distribution
Election Forms, his Beneficiary Designation Form, and any Investment Options elected on the form specified by the Committee. A Participant may not transfer or assign any rights that he has under the Plan other than by will or the laws of descent and
distribution or by the designation of a Beneficiary. No right or interest of any Participant or Beneficiary under the Plan shall be liable for, or subject to, any lien, obligation or liability of such Participant or Beneficiary. 
  

 17 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 amendment or termination 
  
 Except as otherwise provided in this Article 0, this Plan may be altered, amended, suspended, or terminated at any time by
the Board. Except for a termination of the Plan caused by the determination of the Board that the laws upon which the Plan is based have changed in a manner that negates the Plan’s objectives, the Board may not alter, amend, suspend, or
terminate this Plan without the majority consent of all Eligible Employees if that action would result either in a distribution of all Deferred Benefits in any manner other than as provided in this Plan or that would result in immediate taxation of
Deferred Benefits to Participants. Notwithstanding the preceding sentence, if any amendment to the Plan adversely affects the deferred taxation of Deferred Benefits elected hereunder, after the effective date of any such amendment, and the Internal
Revenue Service declines to rule favorably on any such amendment or to rule favorably only if the Board makes amendments to the Plan not acceptable to the Board, the Board, in its sole discretion, may accelerate the distribution of part or all of
the amounts attributable to affected Deferred Benefits due Participants and Beneficiaries hereunder. 
  

 18 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 administration 
  
 Committee 
  
 The Plan shall be administered by the Committee. Subject to the provisions of the Plan, the Committee may adopt such rules and regulations as may be
necessary to carry out the purposes hereof. The Committee’s interpretation and construction of any provision of the Plan shall be final and conclusive. 
  
 Indemnification 
  
 The Company shall indemnify and save harmless each member of the Committee against any and all expenses and liabilities arising out of membership on the
Committee relating to administration of the Plan, excepting only expenses and liabilities arising out of a member’s own willful misconduct. Expenses against which a member of the Committee shall be indemnified hereunder shall include without
limitation, the amount of any settlement or judgment, costs, counsel fees, and related charges reasonably incurred in connection with a claim asserted, or a proceeding brought or settlement thereof. The foregoing right of indemnification shall be in
addition to any other rights to which any such member may be entitled. 
  
 Eligibility Determinations 
  
 In addition to the
powers hereinabove specified, the Committee shall have the power to select which employees of the Company and its Affiliates will be eligible to elect a Deferred Benefit under the Plan, to compute and certify the amount and kind of benefits from
time to time payable to Participants and their Beneficiaries under the Plan, to authorize all disbursements for such purposes, and to determine whether a Participant is entitled to a benefit under the Plan. 
  
 Information to Committee 
  
 To enable the Committee to perform its functions, the Company shall supply
full and timely information to the Committee on all matters relating to the compensation of all Participants, their retirement, death or other cause for termination of employment, and such other pertinent facts as the Committee may require.

  
 Notices 
  
 Notices and elections under this Plan must be in writing. A notice or election is deemed delivered if it is delivered
personally or if it is mailed by registered or certified mail to the person or business at its last known business address. 
  
 Waiver 
  
 The waiver of a breach of any provision in this Plan does not operate as and may not be construed as a waiver of any later breach. 
  

 19 

 OWENS & MINOR, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  

 Binding Nature of Plan 
  
 The Plan shall be binding upon the Company, its Affiliates and the successors and assigns of the Company and its Affiliates,
subject to the provisions set forth in Article 0, and upon a Participant, his or her Beneficiary, and either of their assigns, heirs, executors or committees. 
  

Construction 
  
 This Plan is created, adopted, and maintained according to the laws of the Commonwealth of Virginia (except its choice-of-law rules). It is governed by
those laws in all respects. Headings and captions are only for convenience; they do not have substantive meaning. If a provision of this Plan is not valid or not enforceable, that fact in no way affects the validity or enforceability of any other
provision. Use of one gender includes all, and the singular and plural include each other. 
  

 20 

 EXHIBIT I 
  

INVESTMENT OPTIONS 
  
 A fixed income fund designated by the Committee and communicated to Eligible Employees.Executive Severance Agreement

 Exhibit 10.6 
  
 EXECUTIVE SEVERANCE AGREEMENT 
  

Dear : 
  
 Owens & Minor, Inc. (the “Company”) considers it essential to the best interests of its stockholders to foster the continuous employment of
key management personnel. In this connection, the Board of Directors of the Company (the “Board”) recognizes that, as is the case with many publicly held corporations, the possibility of a change in control of the Company may exist and
that such possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders. 
  
 The Board has determined that appropriate steps should be taken to reinforce
and encourage the continued attention and dedication of members of the Company’s senior management, including yourself, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the
possibility of a change in control of the Company. 
  
 In order to
induce you to remain in the employ of the Company, the Company agrees that you shall receive the severance benefits set forth in this letter agreement (the “Agreement”) in the event your employment with the Company is terminated under the
circumstances described below subsequent to a “change in control of the Company” (as defined in Section 2). 
  
 1. Term of Agreement. 
  
 This Agreement shall commence on January 1, 2005, and shall continue in effect through December 31, 2005; provided, however, that commencing on January 1,
2006, and every other January 1 thereafter, the term of this Agreement shall automatically be extended for one additional year unless, not later than September 30 of the preceding year, the Company shall have given notice that it does not wish to
extend this Agreement (provided that no such notice may be given during the pendency of a potential change in control of the Company, as defined in Section 2); and provided, further, that if a “change in control of the Company”, as defined
in Section 2, shall have occurred during the original and any extension term of this Agreement, this Agreement shall continue in effect for a period of not less than twenty-four (24) months beyond the month in which such change in control occurred.

 2. Change in Control; Potential Change in Control. 
  
 (a) No benefits shall be payable hereunder unless there shall have been a
change in control of the Company (“Change in Control”), as set forth below. For purposes of this Agreement, a Change in Control shall be deemed to have occurred if: 
  
 (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any Company owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20%
or more of the combined voting power of the Company’s then outstanding securities; 
  
 (ii) during any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other
than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (iii) or (iv) of this Section) whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of a majority of the directors then still in office who either (A) were directors at the beginning of such period or (B) were so elected or nominated with such approval, cease for any reason to constitute at least
a majority of the Board; 
  
 (iii) the stockholders of the
Company approve a merger or consolidation of the Company with any other Company, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such
merger or consolidation or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquires more than 20% of the combined voting power of
the Company’s then outstanding securities; or 
  
 (iv) the
stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  
 (b) For purposes of this Agreement, a “Potential Change in Control”
shall be deemed to have occurred if: 
  
 (i) the Company enters
into an agreement, the consummation of which would result in the occurrence of a Change in Control of the Company; 
  
 (ii) any person (including the Company) publicly announces an intention to take or to consider taking actions which if consummated would constitute a
Change in Control; 
  
 (iii) any person, other than a trustee or
other fiduciary holding securities under an employee benefit plan of the Company (or a company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), who
is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 9.5% or 

 
more of the combined voting power of the Company’s then outstanding securities, increases his beneficial ownership of such securities by 3 percentage
points or more over the percentage so owned by such person on the date hereof; or 
  
 (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control of the Company has occurred. 
  
 (c) You agree that, subject to the terms and conditions of this Agreement, in the event of a Potential Change in Control,
you will remain in the employ of the Company until the earliest of (i) a date which is 180 days from the occurrence of such Potential Change in Control of the Company, (ii) the termination by you of your employment by reason of Disability as defined
in Paragraph 3(b) or (iii) the date on which you first become entitled under this Agreement to receive the benefits provided in Paragraph 4(b) below. 
  
 3. Termination Following Change in Control. 
  
 (a) General. If any of the events described in Section 2 constituting a Change in Control shall have occurred, you shall be entitled to the
benefits provided in Paragraph 4(c) upon the subsequent termination of your employment during the term of this Agreement unless such termination is (i) because of your death or Disability, (ii) by the Company for Cause, or (iii) by you other than
for Good Reason. In the event your employment with the Company is terminated for any reason and subsequently a Change in Control occurred, you shall not be entitled to any benefits hereunder. 
  
 (b) Disability. If, as a result of your incapacity due to physical or
mental illness, you shall have been absent from the full-time performance of your duties with the Company for six (6) consecutive months, and within thirty (30) days after written notice of termination is given you shall not have returned to the
full-time performance of your duties, your employment may be terminated for “Disability.” 
  
 (c) Cause. Termination by the Company of your employment for “Cause” shall mean termination (i) upon the willful and continued failure by
you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness or any such actual or anticipated failure after the issuance of a Notice of Termination (as
defined in Paragraph 3(e)) by you for Good Reason (as defined in Paragraph 3(d)), after a written demand for substantial performance is delivered to you by the Board, which demand specifically identifies the manner in which the Board believes that
you have not substantially performed your duties, or (ii) the willful engaging by you in conduct which is demonstrably and materially injurious to the Company, monetarily or otherwise. For purposes of this paragraph, no act, or failure to act, on
your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your action or omission was in the best interest of the Company. Notwithstanding the foregoing, you shall
not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a
meeting of the Board (after reasonable notice to you and an opportunity for you, together with your counsel, to be heard before the Board), finding that in the good faith opinion of the Board you were guilty of conduct set forth above and specifying
the particulars thereof in detail. 
  
 (d) Good Reason.
You shall be entitled to terminate your employment for Good Reason. For purposes of this Agreement, “Good Reason” shall mean, after a Change in Control, the occurrence of any of the following circumstances without your express written
consent, unless, in the case of sub-paragraphs 3(d) (i), (v), (vi), (vii) or (viii), such circumstances are fully corrected prior to 

 
the Date of Termination (as defined in Paragraph 3(f)) specified in the Notice of Termination (as defined in Paragraph 3(e)) given in respect thereof:

  
 (i) (A) any change in your duties or responsibilities
that is inconsistent in any adverse respect with the position in the Company that you held immediately prior to the Change in Control (including any adverse diminution of duties or responsibilities) or (B) an adverse change in your title or position
(including, if applicable, membership on the Board) with the Company as in effect immediately prior to such Change in Control; 
  
 (ii) a reduction by the Company in your annual base salary and/or your target bonus opportunity (including any adverse change in the formula for such
annual bonus target) as in effect immediately prior to the Change in Control, or as the same may be increased from time to time thereafter; 
  
 (iii) any requirement of the Company that you (A) be based more than 35 miles from the Company’s offices at which you are principally employed
immediately prior to the date of the Change in Control or (B) travel on the Company business to an extent substantially greater than your travel obligations immediately prior to the Change in Control; 
  
 (iv) the failure by the Company to pay to you any portion of your current
compensation or compensation under any deferred compensation program of the Company within seven (7) days of the date such compensation is due; 
  
 (v) (A) the failure by the Company to provide or the taking of any action by the Company which would adversely affect your participation in or reduce
your benefits under any employee benefit plan, compensation plan, retirement plan, welfare benefit plan (including medical, dental, life insurance, accident or disabililty plans), vehicle allowance or lease policy, tax preparation and financial
consulting services allowance or any other material fringe benefit plan in which you are participating immediately prior to such Change in Control, unless you are permitted to participate in other plans providing substantially equivalent benefits
(at substantially equivalent cost with respect to welfare benefit plans), or (B) provide you with paid vacation in accordance with the most favorable vacation policies of the Company applicable to you immediately prior to such Change in Control,
including the crediting of all service for which you had been credited under such vacation policies prior to the Change in Control; 
  
 (vi) any refusal by the Company to continue to permit you to engage in professional or community activities or organizations and to hold positions of
leadership in those professional or community organizations, including memberships on boards of directors of other companies or organizations, in the manner and to the extent to which you were permitted to engage in prior to the Change in Control;

  
 (vii) the failure of the Company to obtain a
satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 6 hereof; or 
  
 (viii) any purported termination of your employment that is not effected pursuant to a Notice of Termination satisfying the requirements of Paragraph
3 (e) below, which purported termination shall not be effective for purposes of this Agreement. 
  
 Your right to terminate your employment pursuant to paragraph 3(d) shall not be affected by your incapacity due to physical or mental illness. Your
continued employment shall not constitute consent to, or a waiver of rights with respect to, any circumstances constituting Good Reason hereunder. 

 (e) Notice of Termination. Any purported termination of your employment by the Company or by you
shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 7. “Notice of Termination” shall mean a notice that shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. 
  
 (f) Date of Termination. “Date of Termination” shall mean (i) if your employment is terminated for
Disability, thirty (30) days after Notice of Termination is given (provided that you shall not have returned to the full-time performance of your duties during such thirty (30)-day period), and (ii) if your employment is terminated pursuant to
Paragraphs 3(c) or 3(d), or for any other reason (other than Disability), the date specified in the Notice of Termination (which, in the case of a termination for Cause shall not be less than thirty (30) days from the date such Notice of Termination
is given, and in the case of termination for Good Reason shall not be less than fifteen (15) nor more than sixty (60) days from the date such Notice of Termination is given); provided, however, that if within fifteen (15) days after any Notice of
Termination is given, or, if later, prior to the Date of Termination (as determined without regard to this proviso), the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, then the
Date of Termination shall be the date on which the dispute is finally determined, either by mutual written agreement of the parties or by a binding arbitration award; and provided, further, that the Date of Termination shall be extended by a notice
of dispute only if such notice is given in good faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding the pendency of any dispute, the Company will continue to pay you your full
compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, base salary) and continue you as a participant in all compensation, benefit and insurance plans in which you were participating when the
notice giving rise to the dispute was given, until the dispute is finally resolved in accordance with this Subsection. Amounts paid under this Subsection are in addition to all other amounts due under this Agreement, and shall not be offset against
or reduce any other amounts due under this Agreement and shall not be reduced by any compensation earned by you as the result of employment by another employer. 
  

4. Compensation Upon Termination or During Disability 
  

Following a Change in Control, you shall be entitled to the following benefits during a period of disability, or upon termination of your employment,
as the case may be, provided that such period or termination occurs during the term of this Agreement: 
  
 (a) During any period that you fail to perform your full-time duties with the Company as a result of incapacity due to physical or mental illness, you
shall continue to receive your base salary at the rate in effect at the commencement of any such period, together with all compensation payable to you under the Company’s disability plan or program or other similar plan during such period,
until this Agreement is terminated pursuant to Paragraph 3(b) hereof. Thereafter, or in the event your employment shall be terminated by reason of your death, your benefits shall be determined under the Company’s retirement, insurance and other
compensation programs then in effect in accordance with the terms of such programs. 

 (b) If your employment shall be terminated by the Company for Cause or by you other than for Good Reason,
the Company shall pay you your full base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given, plus all other amounts to which you are entitled under any compensation plan of the Company at the time
such payments are due, and the Company shall have no further obligations to you under this Agreement. 
  
 (c) If your employment by the Company should be terminated by the Company other than for Cause or Disability or if you should terminate your employment
for Good Reason, you shall be entitled to the benefits provided below subject to the provisions of Section 5: 
  
 (i) the Company shall pay to you (A) your full base salary through the Date of Termination at the rate in effect at the time Notice of Termination is
given; (B) a lump sum cash payment equal to the amount of your annual incentive bonus cash award payable during the fiscal year of your Date of Termination, calculated assuming performance at the target level and prorated to reflect the
number of months of such fiscal year elapsed through the Date of Termination from the Company; and (C) all other amounts to which you are entitled under any compensation plan of the Company, at the time such payments are due; 
  
 (ii) in lieu of any further salary payments to you for periods subsequent to
the Date of Termination, the Company shall pay as severance pay to you within 30 days after your Date of Termination, a lump sum severance payment 
  
 [Category A officers —2.99 times (or such lesser number of years as may then be remaining until your normal retirement age under the Company Pension Plan)]

  
 [Category B officers —2 times (or such lesser number of years and
partial years as may then be remaining until your normal retirement age under the Company Pension Plan)] 
  
 the sum of (A) the greater of (1) your annual rate of base salary in effect on the Date of Termination or (2) your annual rate of base salary in effect immediately prior to the Change in Control and (B) the greater of
(1) the average of the last three annual bonuses (annualized in the case of any bonus paid with respect to a partial year) paid to you preceding the Date of Termination or (2) the average of the last three annual bonuses (annualized in the case of
any bonus paid with respect to a partial year) paid to you preceding such Change in Control or 
  
 (iii) the Company shall pay to you all reasonable legal fees and expenses incurred by you as a result of such termination, including all such fees and
expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Agreement (other than any such fees or expenses incurred in connection with any such claim which is
determined by a court of competent jurisdiction to be frivolous) or in connection with any tax audit or proceeding to the extent attributable to the application of section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”);
and 
  
 (iv) the Company shall allow you and your dependents to
continue participation in the Company’s medical benefits and life insurance plans for a period of two (2) years from your Date of Termination. 

 (d) You shall not be required to mitigate the amount of any payment provided for in this Section 4 by
seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 4 be reduced by any compensation earned by you as a result of employment by another employer, by retirement benefits, by offset
against any amount claimed to be owed by you to the Company, or otherwise. 
  
 5. Restrictive Covenants. 
  
 (a) When used in this Section 5, the following terms shall have the meanings specified: 
  
 (i) “Confidential Information” shall mean any data or information with respect to the business conducted by the Company
prior to the Change in Control, its divisions, subsidiaries and affiliates that is material to the Company’s business operations and is not generally known to the public. Without limitation and to the extent consistent with the foregoing,
Confidential Information includes any information that is confidential and proprietary to the Company, including but not limited to: (A) reports, pricing, sales manuals and training manuals, selling, purchasing, and pricing procedures and financing
methods of the Company, together with any specific and proprietary techniques utilized by the Company in designing, developing, testing or marketing its products, product mix and supplier information or in performing services for clients, customers
and accounts of the Company; (B) the business plans and financial statements, reports and projections of the Company prior to the Change in Control; (C) research or development projects or results; (D) identities and addresses of consultants,
customers or clients or any other confidential information relating to or dealing with the business operations or activities of the Company; (E) information concerning trade secrets of the Company; and (F) information concerning existing or
contemplated software, products, services, technology, designs, processes and research or product developments of the Company. Confidential information includes any such information that you may prepare or create during your employment with the
Company, as well as such information that has been or may be created or prepared by others. 
  
 (ii) “Person” shall mean any corporation, partnership, joint venture, trust, sole proprietorship, limited liability
company, unincorporated business association, natural person, and any other entity that may be treated as a person under applicable law. 
  
 (iii) “Prohibited Business” shall mean any Person who competes with the Company in the business of (a) medical/surgical
supply distribution and supply chain inventory management services for providers of healthcare or manufacturers/suppliers of healthcare products, (B) selling or distributing healthcare products directly to the homes of consumers or (C) other
services in competition with the services sold or being definitively planned or developed by the Company at the time of the Change in Control. However, nothing in the agreement shall be construed to prohibit you from involvement with any aspect of a
portion of a Prohibited Business that is not competitive to the business operations of the Company prior to or at the time of the Change in Control. 
  
 (iv) “Restricted Area” shall mean the cities and counties within the United States of America. 
  
 (b) In consideration of the severance benefits provided in Paragraphs 4
(c) (ii), (iii) and (iv), you agree that for a period of twelve (12) months following your Date of Termination from the Company, you will not compete with the Company within the Restricted Area by directly or 

 
indirectly performing for or providing to a Prohibited Business the same or similar duties or services that you performed for the Company within the last
twelve (12) months preceding the Change in Control. 
  
 (c)
In consideration of the severance benefits provided in Paragraphs 4 (c) (ii), (iii) and (iv), independent of the foregoing provisions, you agree that for a period of twelve (12) months following your Date of Termination from the Company, you will
not directly or indirectly, market, sell, attempt to sell, provide or attempt to provide any products or services that compete with those products or services sold or provided by the Company to any Person who is a customer of the Company during the
twelve (12) months of employment prior to the Change in Control or a prospective customer with whom the Company has had written contact with the six (6) months preceding the Change in Control. 
  
 (d) In consideration of the severance benefits provided in Paragraphs 4
(c) (ii), (iii) and (iv), independent of the foregoing provision, you agree that for a period of twelve (12) months following your Date of Termination with the Company, you will not directly or indirectly, cause any Person to terminate, reduce,
alter, divert, reject or refuse business with the Company. 
  
 (e) In consideration of the severance benefits provided in Paragraphs 4 (c) (ii), (iii) and (iv), independent of the foregoing provisions, you agree that for a period of twelve (12) months following your Date of Termination from the
Company, you will not, directly or indirectly, hire or attempt to hire any employee of the Company, nor will you directly or indirectly, encourage or otherwise contact any person employed by the Company to voluntarily terminate his or her employment
with the Company or to cease providing service to or on behalf of the company. 
  
 (f) You acknowledge and understand that during your employment you will be making use of, acquiring or adding to the Company’s Confidential Information. In order to protect the Confidential Information, you
agree that you will not in any way utilize any of the Confidential Information except in connection with your efforts for and on behalf of the Company. You agree that you will not at any time use any Confidential Information for your own benefit or
the benefit of any person except the Company. Except as expressly authorized in writing by the Company, you will not at any time, copy, reproduce or remove from the Company’s premises the original or any copies of Confidential Information, and
you will not at any time disclose any Confidential Information to anyone. You agree to surrender and return to the Company any and all Confidential Information in your possession or control as of your Date of Termination. 
  
 (g) You acknowledge and understand that the Company has a legitimate
business interest in preventing you from taking any actions in violation of this Section 5 and that this Section 5 is intended to protect the business and good will of the Company. You further acknowledge that a breach of the provisions in this
Section 5 will irreparably and continually damage the Company. You therefore agree that in the event you violate any of the terms of this Section 5, the Company will be entitled to seek injunctive relief, specific performance or other equitable
remedies, breach of contract and such other causes of action for damages that may be available under the law. 
  
 (h) This Section 5 is intended to limit your right to compete only to the extent necessary to protect the Company from unfair competition. You
acknowledge that you will be reasonably able to earn a livelihood without violating the terms of this Section 5. If any of the provision of this Section 5 should be deemed to exceed the time, geographic area or activity limitations permitted by
applicable law, you agree that such provision may be reformed to the maximum time, geographic area and activity limitations permitted by the applicable law, and authorize a court or other trier of fact having jurisdiction to so reform such
provisions. 

 (i) You acknowledge and understand that each subsection of this Section 5, and each provision and
clause of each subsection, shall be regarded as separate and independent contractual provisions. The invalidity of any subsection, provision or clause shall not affect the other subsections, provisions or clauses and this Section 5 shall be
construed in all respects as if such invalid or unenforceable subsection, provision or clause were omitted. If any subsection, provision or clause should be found unenforceable by a court of competent jurisdiction, it shall not impair the
enforceability of the other subsections, provisions or clauses of this Section 5. 
  
 6. Limit on Amounts Payable. 
  
 (a) The severance pay and other payments, distributions and benefits provided by the Company to or for your benefit pursuant to this Executive Severance Agreement and under other plans, programs, and agreements may constitute Parachute
Payments that are subject to the “golden parachute” rules of Code section 280G and the excise tax of Code section 4999. The Company and you intend to reduce any Parachute Payments (but not any payment, distribution or other benefit that is
not a Parachute Payment) if, and only to the extent that, a reduction will allow you to receive a greater Net After Tax Amount than you would receive absent a reduction. The remaining provisions of this subsection describe how that intent will be
effectuated. 
  
 (b) The Accounting Firm will first determine the
amount of any Parachute Payments that are payable to you. The Accounting Firm will also determine the Net After Tax Amount attributable to your total Parachute Payments. 
  
 (c) The Accounting Firm will next determine the amount of your Capped Parachute Payments. Thereafter, the Accounting Firm
will determine the Net After Tax Amount attributable to your Capped Parachute Payments. 
  
 (d) You will receive the total Parachute Payments unless the Accounting Firm determines that the Capped Parachute Payments will yield you a higher Net After Tax Amount, in which case you will receive the Capped
Parachute Payments. If you will receive the Capped Parachute Payments, your total Parachute Payments will be adjusted by first reducing the amount payable under any other plan, program, or agreement that, by its terms, requires a reduction to
prevent a “golden parachute” payment under Code section 280G; by next reducing your benefit, if any, under this Executive Severance Agreement, to the extent it is a Parachute Payment; by next reducing the severance pay payable under
Section 4(c) of this Agreement; and thereafter by reducing Parachute Payments payable under other plans and agreements (with the reductions first coming from cash benefits and then from noncash benefits). The Accounting Firm will notify you and the
Company if it determines that the Parachute Payments must be reduced to the Capped Parachute Payments and will send you and the Company a copy of its detailed calculations supporting that determination. 
  
 (e) If, pursuant to paragraph (d), you will receive the total Parachute
Payments, the Company shall indemnify you and hold you harmless against all claims, losses, damages, penalties, expenses, and excise taxes. To effect this indemnification, the Company must pay you an additional amount (the “Gross-Up
Payment”) that after payment by you of all taxes, including, without limitation, any income, employment and excise taxes (and any interest and penalties imposed with respect thereto), imposed upon the Gross-Up Payment leaves you a net amount
from the Gross-Up Payment equal to the excise tax under Code section 4999 imposed on the Parachute Payments. The determination of any additional amount that must be paid under this paragraph must be made by the Company in good faith. 

 (f) As a result of any uncertainty in the application of Code sections 280G and 4999 at the time that the
Accounting Firm makes its determinations under this Section 6, it is possible that amounts will have been paid or distributed to you that should not have been paid or distributed under this Section 6 (“Overpayments”), or that additional
amounts should be paid or distributed to you under this Section 6 (“Underpayments”). If the Accounting Firm determines, based on either controlling precedent, substantial authority or the assertion of a deficiency by the Internal Revenue
Service against you or the Company, which assertion the Accounting Firm believes has a high probability of success, that an Overpayment has been made, then you shall have an obligation to pay the Company upon demand an amount equal to the sum of the
Overpayment plus interest on such Overpayment at the prime rate provided in Code section 7872(f)(2) from the date of your receipt of such Overpayment until the date of such repayment; provided, however, that you shall be obligated to make such
repayment if, and only to the extent, that the repayment would either reduce the amount on which you are subject to tax under Code section 4999 or generate a refund of tax imposed under Code section 4999. If the Accounting Firm determines, based
upon controlling precedent or substantial authority, that an Underpayment has occurred, the Accounting Firm will notify you and the Company of that determination and the Company will pay the amount of that Underpayment to you promptly in a lump sum,
with interest calculated on such Underpayment at the prime rate provided in Code section 7872(f)(2) from the date such Underpayment should have been paid until actual payment. 
  
 (g) All determinations made by the Accounting Firm under this Section 6 are binding on you and the Company and must be made
as soon as practicable but no later than thirty days after your Date of Termination. Within thirty days after your Date of Termination, the Company will pay to you the severance pay under Section 4 or the reduced Severance Amount as calculated by
the Accounting Firm pursuant to Section 6. 
  
 (h) For purposes of
this Agreement, the following terms shall have the meanings indicated below: 
  
 (i) “Accounting Firm” means the public accounting firm retained as the Company’s independent auditor as of the date immediately prior to the Change in Control. In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting the Change in Control, you shall be entitled to appoint another nationally recognized public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). If, however, such firm declines or is unable to undertake the determinations assigned to it under this Agreement, then “Accounting Firm” shall mean such other
independent accounting firm mutually agreed upon by the Company and you. 
  
 (ii) “Capped Parachute Payments” means the largest amount of Parachute Payments that may be paid to you without liability for any excise tax under Code section 4999. 
  
 (iii) “Net After Tax Amount” means the amount of any Parachute
Payments or Capped Parachute Payments, as applicable, net of taxes imposed under Code sections 1, 3101(b) and 4999 and any state or local income taxes applicable to you as in effect on the date of the payment under Section 6 of this Agreement. The
determination of the Net After Tax Amount shall be made using the highest combined effective rate imposed by the foregoing taxes on income of the same character as the Parachute Payments or Capped Parachute Payments, as applicable, in effect for the
year for which the determination is made. 

 (iv) “Parachute Payment” means a payment that is described in Code section 280G(b)(2) (without
regard to whether the aggregate present value of such payments exceeds the limit prescribed by Code section 280G(b)(2)(A)(ii)). The amount of any Parachute Payment shall be determined in accordance with Code section 280G and the regulations
promulgated thereunder, or, in the absence of final regulations, the proposed regulations promulgated under Code section 280G 
  
 7. Successors: Binding Agreement. 
  
 (a) The Company will require any successor (whether direct or indirect, by purchase, merger consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to
obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle you to compensation from the Company in the same amount and on the same terms to which you would be entitled
hereunder if you terminate your employment for Good Reason following a Change in Control, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 

 
 (b) This Agreement shall inure to the benefit of and be enforceable by you
and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder had you continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there is no such designee, to your estate. 
  
 8. Notice. For the purpose of this Agreement, notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first page of
this Agreement, provided that all notice to the Company shall be directed to the attention of the Board with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon receipt. 
  
 9. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by you and such officer as may be
specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a
waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Virginia without regard to its conflicts of law principles.
All references to sections of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state
or local law. The obligations of the Company under Section 4 shall survive the expiration of the initial or any extension term of this Agreement if benefits have become payable under such section before such expiration. 

 10. Validity. The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  
 11. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. 
  
 12.
Arbitration. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three arbitrators in the Commonwealth of Virginia, in accordance with the
rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that you shall be entitled to seek specific performance of your right to be
paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. 
  
 13. Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and
during the term of the Agreement supersedes the provisions of all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party
hereto with respect to the subject matter hereof. 
  
 14.
Effective Date. This Agreement shall become effective as of the date set forth above. If this letter sets forth our agreement on the subject matter thereof, kindly sign and return to the Company the enclosed copy of this letter, which will
then constitute our agreement on this subject. 
  

	
	 Sincerely,

	  

	 G. Gilmer Minor, III

	 Chairman, President and

	 Chief Executive Officer

  
 Agreed as of the
         day 
 of
            ,

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