Document:

Exhibit
10.1

	
  

  	
  Overstock.com, Inc.

  6350 South 3000 East

  Salt Lake City, UT 84121

  Phone: (801) 947-3100

  Fax: (801) 947-3144

  

 

February 13, 2007

VIA CERTIFIED MAIL AND
FACSIMILE (615) 377-3977

Mr. Gary Kimball, CFO

Ozburn-Hessey Logistics

633 Thompson Lane

Nashville, TN 37204

Mr. Gary Kimball, CFO

Ozburn-Hessey Logistics

7101 Executive Center Drive, Suite 333

Brentwood, TN 37027

Re:                             Notice
of Termination of Logistics Services Agreement and Contract Amendment (2)
Indianapolis Ship Alone Operation

Mr. Kimball:

Please be advised this
letter shall constitute Overstock.com, Inc’s notice of termination with respect
to the Logistics Services Agreement with an Effective Date of July 9, 2004 as
well as any and all addendums related thereto, including, but not limited to
the Contract Amendment (2) Indianapolis Ship Alone Operation which was executed
on September 23, 2005. The notice of termination is made pursuant to Section
7(A) of the Logistics Services Agreement and shall be deemed given as of as of
February 15, 2007. As such, the effective date of termination for the Logistics
Services Agreement shall be August 15, 2007.

Should you have any
questions, you may contact the undersigned.

Cordially,

	
  /s/ Stephon Tryon

  	
   

  

Stephon Tryon

Senior Vice PresidentExhibit 10.1

CHARLES RIVER LABORATORIES
INTERNATIONAL, INC.

2007 INCENTIVE PLAN

adopted by the Board of Directors on 
March 22, 2007

approved by the shareholders on May 8, 2007

1.             ADMINISTRATION

Subject
to the express provisions of the Plan, the Administrator has the authority to
interpret the Plan; determine eligibility for and grant Awards; determine,
modify or waive the terms and conditions of any Award; prescribe forms,
rules and procedures (which it may modify or waive); and otherwise do all
things necessary to implement the Plan. Once an Award has been communicated in
writing to a Participant, the Administrator may not, without the Participant’s
consent, alter the terms of the Award so as to affect adversely the Participant’s
rights under the Award, unless the Administrator has expressly reserved the
right to do so. In the case of any Award intended to be eligible for the
performance-based compensation exception under Section 162(m), the
Administrator shall exercise its discretion consistent with qualifying the
Award for such exception.

2.             LIMITS
ON AWARDS UNDER THE PLAN

a.             NUMBER
OF SHARES.  Subject to adjustments as provided in Section 5, the total number
of shares of Stock subject to Awards granted under the Plan, in the aggregate,
may not exceed 6,300,000 (the “Fungible Pool Limit”). Each share of Stock
issued or to be issued in connection with any Full-Value Award shall be counted
against the Fungible Pool Limit as 2.3 Fungible Pool Units. Stock Options, SARs
and other Awards that do not deliver the full value at grant thereof of the
underlying shares of Stock and that expire no more than seven (7)  years
from the date of grant shall be counted against the Fungible Pool Limit as one
(1.0) Fungible Pool Unit. (For these purposes, the number of shares of Stock
taken into account with respect to a SAR shall be the number of shares of Stock
underlying the SAR at grant (i.e., not the final number of shares of Stock
delivered upon exercise of the SAR)). For
purposes of the preceding sentence, shares that have been forfeited or
cancelled in accordance with the terms of the applicable Award shall not be
considered to have been delivered under the Plan, but shares held back in
satisfaction of the exercise price or tax withholding requirements from shares
that would otherwise have been delivered pursuant to an Award will be
considered to have been delivered under the Plan. Any shares of Stock that
again become available for grant pursuant to this Section 2(a) shall be added
back to the pool of available shares.  For
purposes of clarity, in calculating the number of shares of stock remaining
under the Fungible Pool Limit, the Administrator will not increase the number
of available Fungible Pool Units for shares of Stock delivered under an Award
(i.e. previously acquired Shares tendered by the Participant in payment of the
exercise price or of withholding taxes). 
The Administrator shall determine the appropriate methodology for
calculating the number of shares of Stock issued pursuant to the Plan.

b.             TYPE OF
SHARES.  Stock delivered by the Company under the Plan
may be authorized but unissued Stock or previously issued Stock acquired by the
Company and held in treasury. No fractional shares of Stock will be delivered
under the Plan.

c.             CERTAIN
SHARE LIMITS.  The maximum number of shares of
Stock for which Stock Options may be granted to any person annually from and
after adoption of the Plan and prior to March 22, 2017, the maximum number of
shares of Stock subject to SARs granted to any person annually during such period
and the aggregate maximum number of shares of Stock subject to other Awards
that may be delivered (or the value of which may be paid) to any person
annually during such period shall each be 2,000,000. For purposes of the
preceding sentence, the repricing of a Stock Option or SAR shall be treated as
a new grant to the extent required under Section 162(m), PROVIDED, no such
repricing shall be permitted except in accordance with Section 4.a.(10) of this
Plan. Each person eligible to participate in the Plan shall be eligible to
receive Awards covering up to the full number of shares of Stock then available
for Awards under the Plan. No Awards may be granted under the Plan after March 22
2017, but previously granted Awards may extend beyond that date.

d.             OTHER
AWARD LIMITS.  No more than $3,000,000 may be
paid to any individual with respect to any Cash Performance Award (other than
an Award expressed in terms of shares of Stock or units representing Stock,
which shall instead be subject to the limit set forth in Section 2.c. above).
In applying the dollar limitation of the preceding sentence: (A) multiple
Cash Performance Awards to the same individual that are determined by reference
to performance periods of one year with or within the same fiscal year of the
Company shall be subject in the aggregate to one limit of such amount, and
(B) multiple Cash Performance Awards to the same individual that are
determined by reference to one or more multi-year performance periods
ending in the same fiscal year of the Company shall be subject in the aggregate
to a separate limit of such amount.

3.             ELIGIBILITY
AND PARTICIPATION

The
Administrator will select Participants from among those key Employees,
directors and other individuals or entities providing services to the Company
or its Affiliates who, in the opinion of the Administrator, are in a position
to make a significant contribution to the success of the Company and its
Affiliates. Eligibility for ISOs is further limited to those individuals whose
employment status would qualify them for the tax treatment described in
Sections 421 and 422 of the Code.

4.             RULES
APPLICABLE TO AWARDS

a.             ALL AWARDS

(1)                                  TERMS OF AWARDS. All
Awards of Stock Options and SARs granted hereunder shall have a term of not to
exceed seven years from the date of grant. 
The Administrator shall determine all other terms of all Awards subject
to the limitations provided herein.

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(2)                                  PERFORMANCE CRITERIA.
Where rights under an Award depend in whole or in part on satisfaction of
Performance Criteria, actions by the Company that have an effect, however
material, on such Performance Criteria or on the likelihood that they will be
satisfied will not be deemed an amendment or alteration of the Award.

(3)                                  ALTERNATIVE SETTLEMENT.
The Company may at any time extinguish rights under an Award in exchange for
payment in cash, Stock (subject to the limitations of Section 2) or other
property on such terms as the Administrator determines, PROVIDED the holder of
the Award consents to such exchange, PROVIDED FURTHER, no such exchange will be
made where the cash, Stock or property to be received has a fair market value
greater than the Award being extinguished, or where any such exchange would
violate Section 4.a.(10) of this Plan.

(4)                                  TRANSFERABILITY OF
AWARDS. Awards may not be transferred other than by will or by the laws of
descent and distribution and during a Participant’s lifetime an Award requiring
exercise may be exercised only by the Participant (or in the event of the
Participant’s incapacity, the person or persons legally appointed to act on the
Participant’s behalf).

(5)                                  VESTING, ETC. Without
limiting the generality of Section 1, the Administrator may determine the time
or times at which an Award will vest (i.e., become free of forfeiture
restrictions) or become exercisable and the terms on which an Award requiring
exercise will remain exercisable. Unless otherwise provided by Section 4.e with
respect to Performance Awards or if the Administrator expressly provides
otherwise:

(A)                              immediately upon the
cessation of a Participant’s employment or other service relationship with the
Company and its Affiliates, all Awards (other than Stock Options and SARs) held
by the Participant (or by a permitted transferee under Section 4.a.(4))
immediately prior to such cessation of employment or other service relationship
will be forfeited if not then vested and, where exercisability is relevant,
will cease to be exercisable;

(B)                                except as provided in
(C) and (D) below, all Stock Options and SARs held by a Participant
(or by a permitted transferee under Section 4.a.(4)) immediately prior to the
cessation of the Participant’s employment or other service relationship for
reasons other than death, to the extent then exercisable, will remain
exercisable for the lesser of (i) a period of three months or
(ii) the period ending on the latest date on which such Stock Option or
SAR could have been exercised without regard to this Section 4.a.(5), and shall
thereupon terminate;

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(C)                                all Stock Options and
SARs held by a Participant (or by a permitted transferee under Section 4.a.(4))
immediately prior to the Participant’s death, to the extent then exercisable,
will remain exercisable for the lesser of (i) the one-year period ending
with the first anniversary of the Participant’s death or (ii) the period
ending on the latest date on which such Stock Option or SAR could have been
exercised without regard to this Section 4.a.(5), and shall thereupon
terminate; and

(D)                               all Stock Options and
SARs held by a Participant (or by a permitted transferee of the Participant
under Section 4.a.(4)) whose cessation of employment or other service
relationship is determined by the Administrator in its sole discretion to
result from reasons which cast such discredit on the Participant as to justify
immediate termination of the Award shall immediately terminate upon such
cessation.

Unless the Administrator expressly provides
otherwise, a Participant’s “employment or other service relationship with the
Company and its Affiliates” will be deemed to have ceased, in the case of an
employee Participant, upon termination of the Participant’s employment with the
Company and its Affiliates (whether or not the Participant continues in the
service of the Company or its Affiliates in some capacity other than that of an
employee of the Company or its Affiliates), and in the case of any other
Participant, when the service relationship in respect of which the Award was
granted terminates (whether or not the Participant continues in the service of
the Company or its Affiliates in some other capacity).

(6)                                  TAXES. The Administrator
will make such provision for the withholding of taxes as it deems necessary.
The Administrator may, but need not, hold back shares of Stock from an Award or
permit a Participant to tender previously owned shares of Stock in satisfaction
of tax withholding requirements. In no event shall Stock be tendered or held
back by the Company in excess of the minimum amount required to be withheld for
Federal, state, and local taxes. As provided in Section 2(a) of this Plan, in
the event shares of Stock are held back from an Award in satisfaction of tax
withholding requirements, such shares will nonetheless be considered to have
been delivered under the Plan.

(7)                                  DIVIDEND EQUIVALENTS,
ETC. The Administrator may provide for the payment of amounts in lieu of cash
dividends or other cash distributions with respect to Stock subject to any Full
Value Award if and in such manner as it deems appropriate.

(8)                                  RIGHTS LIMITED. Nothing
in the Plan shall be construed as giving any person the right to continued
employment or service with the Company or its Affiliates, or any rights as a
shareholder except as to shares of Stock actually 

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issued under the Plan. The loss of existing or
potential profit in Awards will not constitute an element of damages in the
event of termination of employment or service for any reason, even if the
termination is in violation of an obligation of the Company or Affiliate to the
Participant.

(9)                                  SECTION 162(m). The
Administrator in its discretion may grant Performance Awards that are intended
to qualify for the performance-based compensation exception under Section
162(m) and Performance Awards that are not intended so to qualify. In the case
of an Award intended to be eligible for the performance-based compensation
exception under Section 162(m), the Plan and such Award shall be construed to
the maximum extent permitted by law in a manner consistent with qualifying the
Award for such exception. In the case of a Performance Award intended to
qualify as performance-based for the purposes of Section 162(m), except
as otherwise permitted by the regulations at Treas. Regs. Section 1.162-27:
(i) the Administrator shall pre-establish in writing one or more specific
Performance Criteria no later than 90 days after the commencement of the period
of service to which the performance relates (or at such earlier time as is
required to qualify the Award as performance-based under Section 162(m));
(ii) payment of the Award shall be conditioned upon prior certification by
the Administrator that the Performance Criteria have been satisfied; and
(iii) if the Performance Criteria with respect to the Award are not
satisfied, no other Award shall be provided in substitution of the Performance
Award. The provisions of this Section 6.a.(9) shall be construed in a
manner that is consistent with the regulations under Section 162(m).

(10)                            OPTION AND SAR
REPRICING. Options and SARs may not be repriced without the approval of a
majority of shares voting on the matter.

b.                                      AWARDS REQUIRING EXERCISE

(1)                                  TIME AND MANNER OF
EXERCISE. Unless the Administrator expressly provides otherwise, (a) an
Award requiring exercise by the holder will not be deemed to have been
exercised until the Administrator receives a written notice of exercise (in
form acceptable to the Administrator) signed by the appropriate person and
accompanied by any payment required under the Award or adequate provision
therefore, as set forth in Section 4(b)(3); and (b) if the Award is
exercised by any person other than the Participant, the Administrator may
require satisfactory evidence that the person exercising the Award has the
right to do so.

(2)                                  EXERCISE PRICE. The
Administrator shall determine the exercise price of each Stock Option and SAR;
PROVIDED, that each Stock Option and SAR must have an exercise price that is
not less than the fair market value of the Stock subject to the Stock Option
and SAR, determined as of the date of 

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grant. An ISO granted to an Employee described in
Section 422(b)(6) of the Code must have an exercise price that is not less
than 110% of such fair market value.

(3)                                  PAYMENT OF EXERCISE
PRICE, IF ANY. Where the exercise of an Award is to be accompanied by payment,
the Administrator may determine the required or permitted forms of payment,
subject to the following: (a) all payments will be by cash or check
acceptable to the Administrator, or, if so permitted by the Administrator (with
the consent of the optionee of an ISO if permitted after the grant),
(i) through the delivery of shares of Stock which have been outstanding
for at least six months (unless the Administrator approves a shorter period)
and which have a fair market value equal to the exercise price, (ii) by
delivery of a promissory note of the person exercising the Award to the Company,
payable on such terms as are specified by the Administrator, (iii) if the
Stock is publicly traded, by delivery of an unconditional and irrevocable
undertaking by a broker to deliver promptly to the Company sufficient funds to
pay the exercise price, or (iv) by any combination of the foregoing
permissible forms of payment; and (b) where shares of Stock issued under
an Award are part of an original issue of shares, the Award shall require an
exercise price equal to at least the par value of such shares.

(4)                                  GRANT OF STOCK OPTIONS.
Each Stock Option awarded under the Plan shall be deemed to have been awarded
as a non-ISO (and to have been so designated by its terms) unless the
Administrator expressly provides for ISO treatment that the Stock Option is to
be treated as an ISO.

c.             AWARDS NOT REQUIRING
EXERCISE

Awards of Restricted Stock and Unrestricted Stock may be
made in return for either  (1) services determined by the Administrator to have a
value not less than the par value of the Awarded shares of Stock, or (2) cash
or other property having a value not less than the par value of the Awarded
shares of Stock plus such additional amounts (if any) as the Administrator may
determine payable in such combination and type of cash, other property (of any
kind) or services as the Administrator may determine.

d.             AWARDS OF FULL-VALUE AWARDS

Notwithstanding Section 4(a)(5) of this Plan, (1) Full-Value Awards to
Participants other than non-employee members of the Board of Directors that are
not Performance Awards shall vest (i.e., become free of forfeiture
restrictions) over a period of time at least three years or more from the date
of grant, and (2) Full-Value Awards that are Performance Awards shall be
subject to the attainment of Performance Criteria which require at least 12
months to achieve; PROVIDED, however that Full-Value Awards that aggregate not
more than 5% of the number of shares reserved for issuance under the Plan may
be awarded without the vesting requirements set forth in clauses (1) and (2).  For purposes of clarity, Full-Value Awards
issued to non-employee 

 6
 

members
of the Board of Directors will not be included in determining whether the 5% threshold
in the prior sentence has been achieved.

e.             PERFORMANCE AWARDS

Performance Awards may be granted to Participants as follows:
(1)                      Prior to the grant of any Performance Award, the Administrator shall establish for each such award (i) performance levels at which 100% of the award shall be earned and a range (which need not be the same for all awards) within which greater and lesser percentages shall be earned and (ii) a performance period (which shall not be less than 12 months) which shall be determined at time of grant.
(2)                      With respect to the performance levels to be established pursuant to paragraph 4.e.(1), the specific measures for each grant shall be established by the Administrator at the time of such grant. In creating these measures, the Administrator may establish the specific goals based upon or relating to any Performance Criteria (as defined below).
(3)                      Except as otherwise provided in paragraph 4.e.(5), the percentage of each Performance Award to be distributed to an employee shall be determined by the Administrator on the basis of the performance levels established for such award and on the basis of individual performance in satisfaction of the Performance Award during such period. Any Performance Award, as determined and adjusted pursuant to this paragraph and paragraphs 4.e.(5-8) is herein referred to as a “Final Award”. No distribution of any Final Award (or portion thereof) shall be made if the minimum performance level applicable to the related Performance Award is not achieved during the applicable performance period or, unless otherwise determined by the Administrator, if the employment of the employee to whom the related Performance Award was granted shall terminate for any reason whatsoever (including death) within 12 months after the date the Performance Award was granted.
(4)                      All Final Awards which have vested in accordance with the provisions of paragraphs 4.e.(5-10) shall be granted as soon as practicable following the end of the related vesting period. Final awards shall be granted in the form of Restricted Stock, Unrestricted Stock, Deferred Stock, Cash Performance Awards, or cash or any combination thereof, as the Administrator shall determine.
(5)                      Payment of any Final Award (or portion thereof) to an individual employee shall be subject to the continued rendering of services as an employee (unless this condition is waived by the Administrator).  If the Administrator shall determine that such employee has failed to satisfy such conditions precedent, all Performance Awards granted to such employee which have not become Final Awards, and all Final Awards which have not been paid pursuant to paragraph 

 7
 

4.e.(10) shall be immediately canceled. Upon termination of an employee’s employment other than by death (whether such termination is before or after a Performance Award shall have become a Final Award), the Administrator may, but shall not in any case be required to, waive the condition precedent of continuing to render services.
(6)                      If, upon termination of an employee’s employment prior to the end of any performance period for a reason other than death, the Administrator shall determine to waive the condition precedent of continuing to render services as provided in paragraph 4.e.(5), the Performance Award granted to such employee with respect to such performance period shall be reduced pro rata based on the number of months remaining in the performance period after the month of such termination and such awards will be paid at the time they would have been paid absent an employment termination. The Final Award for such employee shall be determined by the Administrator (i) on the basis of the performance levels established for such award (including the minimum performance level) and the performance level achieved through the end of the performance period and (ii) in the discretion of the Administrator, on the basis of individual performance during the period prior to such termination. A qualifying leave of absence, determined in accordance with procedures established by the Administrator, shall not be deemed to be a termination of employment but, except as otherwise determined by the Administrator, the employee’s Performance Award will be reduced pro rata based on the number of months during which such person was on such leave of absence during the performance period. A Performance Award shall not vest during a leave of absence granted an employee for local, state, provincial, or federal government service.
(7)                      Upon termination of an employee’s employment by reason of death prior to the end of any performance period, the Performance Award granted to such employee with respect to such performance period, except as otherwise provided in paragraph 4.e.(3), shall be reduced pro rata based on the number of months remaining in the performance period after the month of such employee’s death. The percentage of the reduced Performance Award to be distributed to such employee shall be determined by the Administrator (i) on the basis of the performance levels established for such award (including the minimum performance level) and the performance level achieved through the end of the fiscal year during which such employee died and (ii) in the discretion of the Administrator, on the basis of individual performance during the applicable period. Such Final Awards will immediately vest and be paid as promptly as practicable.
(8)                      If an employee is promoted during the performance period with respect to any Performance Award, such Performance Award may, in the discretion of the Administrator, be increased to reflect such employee’s new responsibilities.

 8
 

(9)                      Performance Awards that have become Final Awards may be subject to a vesting schedule established by the Administrator. Except as otherwise provided in this Plan, no Final Award (or portion thereof) subject to a vesting schedule shall be paid prior to vesting and the unpaid portion of any Final Award shall be subject to the provisions of paragraph 4.e.(5). The Administrator shall have the authority to modify a vesting schedule as may be necessary or appropriate in order to implement the purposes of this Plan.
(10)                No holder of a Performance Award shall have any rights to dividends or interest or other rights of a stockholder with respect to a Performance Award prior to such Performance Award’s becoming a Final Award.
(11)                To the extent that any employee, former employee, or any other person acquires a right to receive payments or distributions under this Plan with respect to a Performance Award, such right shall be no greater than the right of a general unsecured creditor of the Company. All payments and distributions to be made hereunder shall be paid from the general assets of the Company. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any employee, former employee, or any other person.

5.             EFFECT
OF CERTAIN TRANSACTIONS

a.             MERGERS, ETC.
Immediately prior to a Covered Transaction (other than an Excluded Transaction
in which the outstanding Awards have been assumed or substituted for as
provided below), all outstanding Awards shall vest and, if relevant, become
exercisable, all Performance Criteria and other conditions to any Award shall
be deemed satisfied (and with respect to any Performance Awards, satisfied to the
extent that Final Awards with respect thereto shall have been deemed to have
been awarded in accordance with Section 4.e (subject to the discretion of the
Administrator as to the satisfaction of performance levels of the Performance Award)), and all deferrals measured by reference
to or payable in shares of Stock shall be accelerated. Upon consummation of a
Covered Transaction, all Awards then outstanding and requiring exercise or
delivery shall terminate unless assumed by an acquiring or surviving entity or
its affiliate as provided below.

In the
event of a Covered Transaction, the Administrator may provide for substitute or
replacement Awards from, or the assumption of Awards by, the acquiring or
surviving entity or its affiliates on such terms as the Administrator
determines.

b.             CHANGES IN AND
DISTRIBUTIONS WITH RESPECT TO THE STOCK

(1)                                  BASIC ADJUSTMENT
PROVISIONS. In the event of a stock dividend, stock split or combination of
shares, recapitalization or other change in the Company’s capital structure,
the Administrator will make appropriate adjustments to the maximum number of
shares that may be delivered under 

 9
 

the Plan under Section 2.a. and to the maximum
share limits described in Section 2.c., and will also make appropriate
adjustments to the number and kind of shares of stock or securities subject to
Awards then outstanding or subsequently granted, any exercise prices relating
to Awards and any other provision of Awards affected by such change.

(2)                                  CERTAIN OTHER
ADJUSTMENTS. The Administrator may also make adjustments of the type described
in paragraph (1) above to take into account distributions to common
stockholders other than those provided for in Section 5.a. and 5.b.(1), or any
other event, if the Administrator determines that adjustments are appropriate
to avoid distortion in the operation of the Plan and to preserve the value of
Awards made hereunder; PROVIDED, that no such adjustment shall be made to the
maximum share limits described in Section 2.c., or otherwise to an Award
intended to be eligible for the performance-based exception under Section
162(m), except to the extent consistent with that exception, nor shall any
change be made to ISOs except to the extent consistent with their continued
qualification under Section 422 of the Code.

(3)                                  CONTINUING APPLICATION
OF PLAN TERMS. References in the Plan to shares of Stock shall be construed to
include any stock or securities resulting from an adjustment pursuant to
Section 5.b.(1) or 5.b.(2) above.

6.             LEGAL
CONDITIONS ON DELIVERY OF STOCK

The
Company will not be obligated to deliver any shares of Stock pursuant to the
Plan or to remove any restriction from shares of Stock previously delivered
under the Plan until the Company’s counsel has approved all legal matters in
connection with the issuance and delivery of such shares; if the outstanding
Stock is at the time of delivery listed on any stock exchange or national
market system, the shares to be delivered have been listed or authorized to be
listed on such exchange or system upon official notice of issuance; and all
conditions of the Award have been satisfied or waived. If the sale of Stock has
not been registered under the Securities Act of 1933, as amended, the Company
may require, as a condition to exercise of the Award, such representations or
agreements as counsel for the Company may consider appropriate to avoid
violation of such Act. The Company may require that certificates evidencing
Stock issued under the Plan bear an appropriate legend reflecting any
restriction on transfer applicable to such Stock.

7.             AMENDMENT
AND TERMINATION

Subject
to the last sentence of Section 1, the Administrator may at any time or times
amend the Plan or any outstanding Award for any purpose which may at the time
be permitted by law, or may at any time terminate the Plan as to any further
grants of Awards; PROVIDED, that (except to the extent expressly required or
permitted by the Plan) no such amendment will, without the approval of the
stockholders of the Company, effectuate a change for which stockholder approval
is required under the rules of the New York Stock Exchange (which includes any “material
revision” as defined under the rules of the New York Stock Exchange) or in
order for the Plan to continue to 

 10
 

qualify
under Section 422 of the Code and for Awards to be eligible for the performance-based
exception under Section 162(m).

8.             NON-LIMITATION
OF THE COMPANY’S RIGHTS

The
existence of the Plan or the grant of any Award shall not in any way affect the
Company’s right to award a person bonuses or other compensation in addition to
Awards under the Plan.

9.             GOVERNING
LAW

The Plan
shall be construed in accordance with the laws of The Commonwealth of
Massachusetts without reference to principles of conflicts of laws.

10.          DEFINED
TERMS.

The
following terms, when used in the Plan, shall have the meanings and be subject
to the provisions set forth below:

“ADMINISTRATOR”: The Board or, if one or more has
been appointed, the Committee. With respect to ministerial tasks deemed
appropriate by the Board or Committee, the term “Administrator” shall also
include such persons (including Employees) to whom the Board or Committee shall
have delegated such tasks.

“AFFILIATE”: Any corporation or other entity
owning, directly or indirectly, 50% or more of the outstanding Stock of the
Company, or in which the Company or any such corporation or other entity owns,
directly or indirectly, 50% of the outstanding capital stock (determined by
aggregate voting rights) or other voting interests.

“AWARD”: Any or a combination of the following
(which shall include any Final Award with respect to the following):

(i)                                     Stock Options.

(ii)                                  SARs.

(iii)                               Restricted Stock.

(iv)                              Unrestricted Stock.

(v)                                 Deferred Stock.

(vi)                              Cash Performance Awards.

(vii)                           Other Performance
Awards.

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(viii)                        Grants of cash made in
connection with other Awards in order to help defray in whole or in part the
economic cost (including tax cost) of the Award to the Participant.

“BOARD”: The Board of Directors of the Company.

“CASH PERFORMANCE AWARD”: A Performance Award
payable in cash. The right of the Company under Section 4.a.(3) (subject
to the consent of the holder of the Award as therein provided) to extinguish an
Award in exchange for cash or the exercise by the Company of such right shall
not make an Award otherwise not payable in cash a Cash Performance Award.

“CODE”: The U.S. Internal Revenue Code of 1986 as
from time to time amended and in effect, or any successor statute as from time
to time in effect.

“COMMITTEE”: One or more committees of the Board
(including any subcommittee thereof) appointed or authorized to make Awards and
otherwise to administer the Plan. In the case of Awards granted to executive
officers of the Company, except as otherwise permitted by the regulations at
Treas. Regs. Section 1.162-27, the Committee shall be comprised solely of
two or more outside directors within the meaning of Section 162(m).

“COMPANY”: Charles River Laboratories
International, Inc.

“COVERED TRANSACTION”: Any of (i) a
consolidation or merger in which the Company is not the surviving corporation
or which results in any individual, entity or “group” (within the meaning of
section 13(d) of the Securities Exchange Act of 1934) acquiring the
beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) directly or indirectly of more than 50% of either the
then outstanding shares of common stock of the Company or the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors, (ii) a sale or transfer of all or
substantially all the Company’s assets, or (iii) a dissolution or
liquidation of the Company.

“DEFERRED STOCK”: A promise to deliver Stock or
other securities in the future on specified terms.

“EMPLOYEE”: Any person who is employed by the
Company or an Affiliate.

“EXCLUDED TRANSACTION”: A Covered Transaction in
which

(i)                                     the shares of common
stock of the Company or the voting securities of the Company entitled to vote
generally in the election of directors are acquired directly from the Company;
or

(ii)                                  the shares of common
stock of the Company or the voting securities of the Company entitled to vote
generally in the election of directors are acquired 

 12
 

by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company; or

(iii)                               (a) the beneficial
owners of the outstanding shares of common stock of the Company, and of the
securities of the Company entitled to vote generally in the election of
directors, immediately prior to such transaction beneficially own, directly or
indirectly, in substantially the same proportions immediately following such
transaction more than 50% of the outstanding shares of common stock and of the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors of the corporation (including,
without limitation, a corporation which as a result of such transaction owns
the Company or all or substantially all of the Company’s assets either directly
or through one or more subsidiaries) resulting from such transaction and (b) at
least a majority of the members of the board of directors of the corporation
resulting from such transaction were members of the board of directors at the
time of the execution of the initial agreement, or of the action of the Board,
authorizing such transaction.

“FULL-VALUE AWARD”: an Award
other than an Option or SAR, and which is settled by the issuance of shares of
Stock or the value of the stated number of shares in cash.

“FUNGIBLE
POOL UNIT”: the measuring unit used for purposes of the Plan, as specified in
Section 2, to determine the number of Shares which may be subject to
Awards hereunder, which shall consist of Shares in the proportions (ranging
from 1.0  to 2.3) as set forth in Section 2(a).

“ISO”: A Stock Option intended to be an “incentive
stock option” within the meaning of Section 422 of the Code.

“PARTICIPANT”: An Employee, director or other
person providing services to the Company or its Affiliates who is granted an
Award under the Plan.

“PERFORMANCE AWARD”: An Award subject to Performance
Criteria (including any Award that is a Final Award distributed in satisfaction
of the vesting of a Performance Award that was subject to Performance Criteria).

“PERFORMANCE CRITERIA”: Specified criteria the
satisfaction of which is a condition for the exercisability, vesting or full
enjoyment of an Award. For purposes of Performance Awards that are intended to
qualify for the performance-based compensation exception under Section
162(m), a Performance Criterion shall mean an objectively determinable measure
of performance relating to any of the following (determined either on a
consolidated basis or, as the context permits, on a divisional, subsidiary,
line of business, project or geographical basis or in combinations thereof):
(i) sales; revenues; assets; liabilities; costs; expenses; earnings before
or after deduction for all or any portion of 

 13
 

interest, taxes, depreciation, amortization or
other items, whether or not on a continuing operations or an aggregate or per
share basis; return on equity, investment, capital or assets; one or more
operating ratios; borrowing levels, leverage ratios or credit rating; market
share; capital expenditures; cash flow; working capital requirements; stock
price; stockholder return; sales, contribution or gross margin, of particular
products or services; particular operating or financial ratios; customer
acquisition, expansion and retention; or any combination of the foregoing; or
(ii) acquisitions and divestitures (in whole or in part); joint ventures
and strategic alliances; spin-offs, split-ups and the like;
reorganizations; recapitalizations, restructurings, financings (issuance of
debt or equity) and refinancings; transactions that would constitute a change
of control; or any combination of the foregoing. A Performance Criterion
measure and targets with respect thereto determined by the Administrator need
not be based upon an increase, a positive or improved result or avoidance of
loss.

“PLAN”: The Charles River Laboratories
International, Inc. 2007 Incentive Plan as from time to time amended and
in effect.

“PREEXISTING PLANS”: Any plan of the Company or
its predecessors in existence at or prior to March 22, 2007 under which equity,
equity-based or performance cash awards were granted, including, without limitation,
the following: (1) Charles River Laboratories International, Inc. 2000
Incentive Plan; (2) Charles River Laboratories Holdings, Inc. 1999 Management
Incentive Plan; and (3) Charles River Laboratories International, Inc. 2000
Directors Stock Plan.  For the purposes
of this definition, “preexisting plans” shall not refer to the Company’s
Executive Incentive Compensation Plan (EICP).

“RESTRICTED STOCK”: An Award of Stock subject to
restrictions requiring that such Stock be redelivered to the Company if specified
conditions are not satisfied.

“SECTION 162(m)”: Section 162(m) of the Code.

“SARS”: Rights entitling the holder upon exercise
to receive cash or Stock, as the Administrator determines, equal to a function
(determined by the Administrator using such factors as it deems appropriate) of
the amount by which the Stock has appreciated in value since the date of the
Award.

“STOCK”: Common Stock of the Company.

“STOCK OPTIONS”: Options entitling the recipient
to acquire shares of Stock upon payment of the exercise price.

“UNRESTRICTED STOCK”: An Award of Stock not
subject to any restrictions under the Plan.

 14
 

11.          SECTION
409A OF THE CODE

To the extent applicable, the Plan is intended to
comply with Section 409A of the Code and the Administrator shall interpret and
administer the Plan in accordance therewith. 
In addition, any provision in this Plan document that is determined to
violate the requirements of Section 409A shall be void and without effect.  In addition, any provision that is required
to appear in this Plan document that is not expressly set forth shall be deemed
to be set forth herein, and such Plan shall be administered in all respects as
if such provisions were expressly set forth. 
The Administrator shall have the authority unilaterally to accelerate or
delay a payment to which the holder of any Award may be entitled to the extent
necessary or desirable to comply with, or avoid adverse consequences under,
Section 409A.

12.          EFFECTIVE
DATE OF THE PLAN

The Plan shall be
effective as of the date of its approval by the Board, subject to its approval
by the stockholders of the Company.

13.          AWARDS
UNDER PREEXISTING PLANS

Upon
approval of the Plan by stockholders of the Company as contemplated under
Section 12, no further awards shall be granted under the Preexisting Plans;
PROVIDED, however, that any shares that have been forfeited or cancelled in
accordance with the terms of the applicable award under a Preexisting Plan may
be subsequently again awarded in accordance with the terms of such Preexisting Plan.

 15

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