Document:

Exhibit 10.3

                    [Letterhead of Genesee & Wyoming Inc.]

                                                             December 12, 2000

Mortimer B. Fuller III
c/o Genesee & Wyoming Inc.
66 Field Point Road
Greenwich, CT  06830

The 1818 Fund III, L.P.
c/o Brown Brother Harriman & Co.
59 Wall Street
New York, NY 10005
Attention:  Mr. T. Michael Long

Dear Sirs:

          Reference is made to the Stock Purchase Agreement, dated October 19,
2000 (as amended from time to time, the "Stock Purchase Agreement"), by and
between Genesee & Wyoming Inc. (the "Company"), and The 1818 Fund III L.P. (the
"Purchaser").  This letter (the "Agreement") sets forth the terms and
conditions of the agreement reached between the Company, Mortimer B. Fuller
III ("MBF") and the Purchaser regarding the Purchaser's rights to
representation on the Board of Directors of the Company (the "Board of
Directors") and certain other matters.

          All capitalized terms used herein and not otherwise defined shall
have the meaning ascribed to such terms in the Stock Purchase Agreement.

          1.   Board Representation.
               --------------------
               (a)  The Company shall, within 30 days after the date hereof,
promptly cause one vacancy to be created on its Board of Directors (by
increasing the number of members of the Board of Directors or otherwise) and
at such time shall cause one person designated by the Purchaser and that is
reasonably acceptable to the Company to be selected to fill such vacancy;
provided that each of T. Michael Long and Walter Grist shall be deemed to be
acceptable to the Company.  Such designee shall serve until the next succeeding
annual meeting of stockholders of the Company to be held after such election.
Notwithstanding the foregoing, at any time that the Purchaser does not
continue to own at least 20% of the shares of Class A Common Stock issued or
issuable upon conversion of the Preferred Stock (whether or not the Preferred
Stock has been converted), such designee shall tender his or her resignation
to the Company's Board of Directors at the next succeeding annual meeting of
stockholders, whether or not such designee's term of office expires at such
meeting.

<PAGE>

               (b)  Commencing with such next succeeding annual meeting of
stockholders of the Company referred to in subsection (a) above and at each
annual meeting of stockholders of the Company thereafter, so long as the
Purchaser holds 20% of the shares of Class A Common Stock issued or issuable
upon conversion of the Preferred Shares (whether or not the Preferred Shares
have been converted)the Purchaser shall be entitled to designate one director
who shall be acceptable to the Company to the Company's Board of Directors;
provided that each of T. Michael Long and Walter Grist shall be deemed to be
acceptable to the Company.  The Company shall cause such designee of the
Purchaser to be included in the slate of nominees recommended by the Board to
the Company's stockholders for election as directors, and the Company shall use
its reasonable best efforts to cause the election of such designee, including
voting all shares for which the Company holds proxies (unless otherwise
directed by the stockholder submitting such proxy) or is otherwise entitled
to vote, in favor of the election of such person.  Notwithstanding the
foregoing, at any time that the Purchaser does not continue to own at least
20% of the shares of Class A Common Stock issued or issuable upon conversion
of the Preferred Stock (whether or not the Preferred Stock has been
converted), such designee shall tender his or her resignation to the
Company's Board of Directors at the next succeeding annual meeting of
stockholders, whether or not such designee's term of office expires at such
meeting.

               (c)  In the event such designee of the Purchaser shall cease to
serve as a director for any reason, other than by reason of the Purchaser not
being entitled to designate a designee as provided in Section 1(a) or 1(b), the
Company shall use its reasonable best efforts to cause the vacancy resulting
thereby to be filled by a designee of the Purchaser that is reasonably
acceptable to the Company; provided that each of T. Michael Long and Walter
Grist shall be deemed to be acceptable to the Company.

               (d)  In addition to the rights granted pursuant to Section 1(a),
(b) and (c) above, the Purchaser shall have the right to have a representative
reasonably acceptable to the Company attend all portions of regular and special
meetings of the Board of Directors of the Company not reserved for members of
the Board of Directors of the Company only except to the extent counsel to the
Company advises that such attendance or receipt of information thereat could
jeopardize matters of attorney-client privilege or otherwise not be in the
Company's best interests as a whole.  Such representative shall agree in
writing at the time of his or her designation that he or she shall be bound
by the same fiduciary duties (including those relating to confidentiality) as
apply to members of the Board.  Such right is further conditioned upon the
receipt of an agreement in writing pursuant to which such representative
agrees to keep confidential all discussions held, and materials distributed,
at the meeting of the Company's Board of Directors.  The visitation rights
set forth above shall include the right to receive the same notice and
materials provided to Board and committee members.  For the avoidance of
doubt, it is understood and agreed that each of T. Michael Long and Walter
Grist shall be deemed acceptable to the Company for purposes of this Section
1(d).

<PAGE>

               (e)  From and after the date hereof and so long as the Purchaser
continues to hold at least 20% of the shares of Class A Common Stock issued or
issuable upon conversion of the Preferred Stock (whether or not the Preferred
Stock has been converted), at each annual or special stockholders meeting
called for the election of directors, and whenever the stockholders of the
Company act by written consent with respect to the election of directors, MBF
agrees to vote or otherwise give such stockholder's consent in respect of all
shares of the capital stock of the Company (whether now or hereafter acquired)
owned (whether jointly or severally) or, to the extent permitted by law,
controlled (including shares held by the Estate of Frances A. Fuller (until
distributed in accordance with Section 2(f)), but excluding shares held by the
Overlook Estate Foundation, Inc. or the Frances A. Fuller Family Trust) by such
stockholder, and take all other appropriate action, in order to cause:

                    (i) the election to the Board of Directors of the designee
of the Purchaser pursuant to this Section 1;

                   (ii) the removal from the Board of Directors (with or with-
out cause) of any director elected in accordance with clause (i) above upon the
written request of the Purchaser; and

                  (iii) upon any vacancy in the Board as a result of any
individual designated as provided in clause (i) above ceasing to be a member of
the Board of Directors, whether by resignation or otherwise, the election to
the Board of Directors as promptly as possible of an individual designated by
the Purchaser that is reasonably acceptable to the Company; provided that each
of T. Michael Long and Walter Grist shall be deemed to be acceptable to the
Company.

               (f)  No party hereto shall grant any proxy or enter into or
agree to be bound by any voting trust with respect to shares of capital stock
held by it, nor shall any party hereto enter into any stockholder agreement or
arrangement of any kind with respect to shares of capital stock held by it,
which conflicts or is inconsistent in any manner with the provisions of this
Agreement.

          2.   Transfer.
               --------

               (a)  MBF shall not sell, transfer, assign, pledge or otherwise
dispose of any capital stock of the Company in a single or series of related
private transactions (a "Transfer") other than in compliance with this Section
2. MBF agrees not to consummate any Transfer (other than a Transfer to a
Permitted Transferee pursuant to Sections 2(c), 2(d) and 2(e) or transaction
permitted under Section 2(f)) until the expiration of a 15-day period (the
"Election Period") following delivery by MBF of a Transfer Notice pursuant to
Section 2(b).

<PAGE>

               (b)  If at any time MBF desires to transfer 15% or more of the
shares of Common Stock directly owned (whether jointly or severally) by him
(which, for purposes of this section 2 shall include shares owned by the Estate
of Frances A. Fuller (until distributed in accordance with Section 2(f)), but
exclude shares owned by the Overlook Estate Foundation, Inc. or the Frances
A. Fuller Family Trust) in a single or series of related private transactions
to a Person other than a Permitted Transferee or as set forth in Section
2(f), and, so long as the Purchaser owns 20% of the shares of Common Stock
issued or issuable upon conversion of the Preferred Stock, MBF shall notify
the Company and the Purchaser of such desire (the "Transfer Notice").  The
Purchaser shall have the right, exercisable by written notice to the Company
and to MBF prior to the expiration of the Election Period, to participate in
such Transfer on a pro rata basis on the same terms and conditions as MBF.
In the event that the Purchaser elects to participate in a Transfer pursuant
to this Section 2(b), MBF and the Purchaser shall be entitled to sell in such
Transfer the number of shares of Common Stock determined by multiplying the
number of shares covered by the Transfer Notice by a fraction, the numerator
of which is the number of shares of Common Stock or Common Stock issued or
issuable upon conversion of the Preferred Stock held by MBF or the Purchaser
(determined on a fully diluted basis), as the case may be, and the
denominator of which is the number of shares of Common Stock or Common Stock
issued or issuable upon conversion of the Preferred Stock held by both MBF
and the Purchaser (determined on a fully diluted basis).  MBF shall not
effect any Transfer subject to this Section 2(b) unless the purchaser agrees
to the participation of the Purchaser in such transaction as specified above
or, in the alternative, MBF purchases the shares that the Purchaser is
entitled to include in such Transfer on the terms set forth in the Transfer
Notice concurrently with the closing of such Transfer.  For the avoidance of
doubt, it is understood and agreed that this Section 2(b) does not apply to
Transfers by MBF, in a single or series of related transactions that do not
exceed, individually or in the aggregate, 15% or more of the shares of Common
Stock directly owned by him.

               (c)  Permitted Transfers. The restrictions set forth in this
Section 2 shall not apply to Transfers of Common Stock to (i) a member of MBF's
immediate family, which shall include MBF, his spouse, siblings (except as set
forth in Section 2(f)), children or grandchildren ("Family Members") or (ii) a
trust, corporation, partnership or limited liability company, all of the
beneficial interests in which shall be held by MBF or one or more Family
Members of MBF; provided, however, that during the period that any such trust,
corporation, partnership or limited liability company holds any right, title or
interest in any shares of Common Stock, no Person other than MBF or one or more
Family Members of MBF may be or may become beneficiaries, stockholders, limited
or general partners or members thereof (the Persons referred to in the pre-
ceding clauses (i) and (ii) are each referred to hereinafter as a "Permitted
Transferee").  A Permitted Transferee of shares of Common Stock pursuant to
this Section 2(c) may transfer shares of Common Stock received after the date
hereof pursuant to this Section 2(c) only to MBF or to a Person that is a
Permitted Transferee.  MBF shall not avoid the provisions of this Agreement
by making one or more transfers to one or more Permitted Transferees and then
disposing of all or any portion of MBF's interest in any such Permitted
Transferee, and any transfer or attempted transfer in violation of this
covenant shall be null and void ab initio.

<PAGE>

               (d)  Permitted Transfer Procedures.  If MBF wishes to transfer
shares of Common Stock to a Permitted Transferee under Section 2(c), MBF shall
give notice to the Company of his intention to make such a transfer not less
than seven (7) days prior to effecting such transfer, which notice shall state
the name and address of each Permitted Transferee to whom such transfer is pro-
posed, the relationship of such Permitted Transferee to MBF, and the number of
shares of Common Stock proposed to be transferred to such Permitted Transferee.

               (e)  Transfers in Compliance with Law; Substitution of
Transferee.  Except as set forth in Section 2(f), notwithstanding any other
provision of this Agreement, no transfer may be made pursuant to this Section 2
to a Permitted Transferee unless (a) the Permitted Transferee has agreed in
writing to be bound by the terms and conditions of this Agreement pursuant to
an instrument in form and substance satisfactory to the Company, (b) the
transfer complies in all respects with the applicable provisions of this
Agreement and (c) the transfer complies in all respects with applicable federal
and state securities laws, including, without limitation, the Securities Act.
Upon becoming a party to this Agreement, a Permitted Transferee shall be
substituted for, and shall enjoy the same rights and be subject to the same
obligations as MBF hereunder with respect to the shares of Common Stock
transferred to such Permitted Transferee.

               (f)  Exempt Transactions.  Notwithstanding any other provision
of this Agreement, the restrictions set forth in this Section 2 shall not apply
to (i) Transfers of Common Stock to permit MBF to, directly or indirectly,
satisfy his obligations under the Agreement, dated May 13, 1997, between MBF
and Suzanne Fuller; provided, however, that such Transfers do not,
individually or in the aggregate, exceed 45,000 shares of Common Stock, (ii)
sales of Common Stock by financial institutions pursuant to pledge agreements
executed by MBF and existing as of the date of this agreement, or (iii)
distributions of Common Stock by the Estate of Frances A. Fuller to Patricia
A. Fuller or Frances F. Gunster, whether directly or in trust.  For the
avoidance of doubt, the transferees in transactions effected pursuant to the
preceding sentence shall not be required to agree in writing to or otherwise
be bound by the terms and conditions of this Agreement.

          3.   Other Agreements.
               ----------------
               (a)  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

<PAGE>

               (b)  This Agreement constitutes the entire agreement of the
parties hereto with respect to the subject matter hereof and cannot be modified
or amended except in writing signed by the parties hereto.

               (c)  This Agreement may be executed in counterparts, all of
which taken together shall constitute one instrument.

          Please confirm that the foregoing correctly sets forth our
understanding by signing and returning the enclosed duplicate copy of this
Agreement.

                                               Sincerely,

                                               GENESEE & WYOMING INC.

                                               By: /s/ John C. Hellmann
                                                  ----------------------------
                                               Name:   John C. Hellmann
                                               Title:  Chief Financial Officer

<PAGE>

Accepted and Agreed to
this 12 day of December, 2000

THE 1818 FUND III, L.P.

By:  Brown Brothers Harriman & Co.
     its General Partner

     By:    /s/ Walter Grist
            ----------------------------
     Name:  Walter Grist
     Title: Senior Manager

Mortimer B. Fuller, III

/s/ Mortimer B. Fuller, III
----------------------------------------EXHIBIT 10.6

Anthony J. Conway
Rochester Medical Corporation
One Rochester Medical Drive
Stewartville, Minnesota 55976

Dear Anthony:

         You are presently the President, Chief Executive Officer and Secretary
of Rochester Medical Corporation, a Minnesota corporation (the "Company"). The
Company considers the establishment and maintenance of a sound and vital
management to be essential to protecting and enhancing the best interests of the
Company and its stockholders. In this connection, the Company recognizes that,
as is the case with many publicly held corporations, the possibility of a Change
in Control (as defined in Section 1 below) of the Company may arise and that
such possibility, and the uncertainty and questions which it may raise among
management, may result in the departure or distraction of management personnel
to the detriment of the Company and its stockholders.

         Accordingly, the Compensation Committee (the "Committee") of the Board
of Directors of the Company (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 management to their assigned duties
without distraction in circumstances arising from the possibility of a Change in
Control of the Company. In particular, the Board believes it important, should
the Company or its stockholders receive a proposal for transfer of control of
the Company, that you be able to assess and advise the Board whether such
proposal would be in the best interests of the Company and its stockholders and
to take such other action regarding such proposal as the Board might determine
to be appropriate, without being influenced by the uncertainties of your own
personal situation.

         In order to induce you to remain in the employ of the Company, this
letter agreement (this "Agreement"), which has been approved by the Committee,
sets forth the severance benefits which the Company agrees will be provided to
you in the event your employment with the Company is terminated subsequent to a
Change in Control of the Company under the circumstances described below. This
Agreement also provides you with certain benefits following a Change in Control
of the Company regardless of whether your employment by the Company is
terminated.

         In consideration of these benefits, the Agreement contains a covenant
not to compete (Section 7, below).

<PAGE>

         1. Definitions. The following terms shall have the meaning set forth
below unless the context clearly requires otherwise. Terms defined elsewhere in
this Agreement shall have the same meaning throughout this Agreement.

         (a) "Cause" shall mean: (i) continued failure by you to perform
substantially your duties with the Company (other than any such failure
resulting from your Disability or from termination by you for Good Reason) which
failure, in the reasonable judgment of the Company, is willful; (ii) any act or
acts of personal dishonesty by you intended to result in your personal
enrichment at the expense of the Company (including but not limited to wrongful
appropriation of funds of the Company or its affiliates); (iii) willful and
deliberate misconduct during the course of employment; or (iv) the commission of
a gross misdemeanor or felony (whether or not the Company is the victim of such
offense).

         (b) "Change in Control" shall be deemed to have occurred if: (i) a
tender offer shall be made and consummated for the ownership of fifty percent
(50%) or more of the outstanding Voting Securities of the Company; (ii) the
Company shall be merged or consolidated with another corporation and as a result
of such merger or consolidation less than fifty percent (50%) of the outstanding
Voting Securities of the surviving or resulting corporation shall be owned in
the aggregate by the former shareholders of the Company, other than affiliates
(within the meaning of the Exchange Act) of any party to such merger or
consolidation, as the same shall have existed immediately prior to such merger
or consolidation; (iii) the Company shall sell substantially all of its assets
to another corporation which is not a wholly owned subsidiary of the Company;
(iv) a Person shall acquire fifty percent (50%) or more of the outstanding
Voting Securities of the Company (whether directly, indirectly, beneficially or
of record) (for purposes hereof, ownership of Voting Securities shall take into
account and shall include ownership as determined by applying the provisions of
Rule 13d-3(d)(1)(i) (as in effect on the date hereof) pursuant to the Exchange
Act); or (v) individuals who constitute the Board on the date hereof (the
"Incumbent Board") cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date
hereof whose election, or nomination for election by the Company's stockholders,
was approved by a vote of at least three-quarters (3/4) of the directors
comprising the Incumbent Board (either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for
director, without objection to such nomination) shall be, for purposes of this
clause (v), considered as though such person were a member of the Incumbent
Board. Notwithstanding anything in the foregoing to the contrary, no Change in
Control of the Company shall be deemed to have occurred for purposes of this
Agreement by virtue of any transaction which results in: (A) you, or a group of
Persons which includes you, acquiring, directly or indirectly more than fifty
percent (50%) of the combined voting power of the Company's Voting Securities;
or (B) you becoming immediately employed by a Person which leases and/or manages
substantially all of the assets of the Company, providing that the terms of such
employment do not constitute a "Good Reason" termination as defined in
Subsection 1(f) hereof either when such employment commences or at any time
during the then remaining term of this Agreement.

         (c) "Date of Termination" shall mean the date specified in the Notice
of Termination (except in the case of your death, in which case Date of
Termination shall be the date of death).

<PAGE>

         (d) "Disability" shall have the same meaning as defined in the
Company's long-term disability plan as in effect immediately prior to the Change
in Control of the Company.

         (e) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         (f) "Good Reason" shall mean termination based on:

                  (i) the assignment to you of employment responsibilities which
         are not of materially comparable responsibility and status as the
         employment responsibilities held by you immediately prior to the Change
         in Control of the Company;

                  (i) a reduction by the Company in your rate of compensation
         (or an adverse change in the form or timing of the payment thereof) as
         in effect immediately prior to the Change in Control of the Company;

                  (ii) the failure by the Company to continue in effect any Plan
         in which you are participating at the time of the Change in Control of
         the Company (or Plans providing you with at least substantially similar
         benefits) other than a result of the normal expiration of any such Plan
         in accordance with its terms as in effect at the time of the Change in
         Control of the Company, or the taking of any action, or the failure to
         act, by the Company which would adversely affect your continued
         participation in any of such Plans on at least as favorable a basis to
         you as is the case on the date of the Change in Control of the Company
         or which would materially reduce your benefits in the future under any
         of such Plans or deprive you of any material benefit enjoyed by you at
         the time of the Change in Control in the Company;

                  (iii) the Company's requiring you to be based anywhere other
         than the environs of the municipality where your office is located
         immediately prior to the Change in Control of the Company and more than
         thirty-five (35) miles from such office location, except for required
         travel on the Company's business, and then only to the extent
         substantially consistent with the business travel obligations which
         your undertook on behalf of the Company prior to the Change in Control
         of the Company; or

                  (iv) the failure by the Company to obtain from any Successor
         the assent to this Agreement contemplated by Subsection 8(a) hereof.

         (g) "Notice of Termination" shall mean a written notice which shall
state the specific termination provision in this Agreement relied upon. Any
purported termination by the Company or by you following a Change in Control of
the Company shall be communicated by written Notice of Termination to the other
party hereto.

         (h) "Person" shall mean and include any individual, corporation,
partnership, group, association or other "person" within the meaning of Section
3(a)(9) or of Section 13(d)(3) (as in effect on the date hereof) of the Exchange
Act, and used in Section 14(d) thereof, other than the

<PAGE>

Company, a wholly-owned subsidiary of the Company or any employee benefit
plan(s) sponsored by the Company or a wholly-owned subsidiary of the Company.

         (i) "Plan" shall mean any compensation plan (such as an incentive stock
option or restricted stock plan) or any employee benefit plan (such as a thrift,
pension, profit sharing, medical, disability, accident, life insurance or
relocation plan or policy) or any other plan, program, policy or agreement of
the Company intended to benefit employees generally, management employees as a
group or you in particular, now in existence or becoming effective hereafter
during the term of this Agreement.

         (j) "Successor" shall mean any Person that succeeds to, or has the
practical ability to control (either immediately or with the passage of time),
the Company's business directly, by merger, consolidation or other form of
business combination, or indirectly, by purchase of the Company's Voting
Securities, all or substantially all of its assets or otherwise.

         (k) "Voting Securities" shall mean securities of a corporation
ordinarily having the right to vote at elections of directors.

         2. Term of Agreement. This Agreement shall commence on the date hereof
and shall continue in effect until December 31, 2001; provided, however, that
commencing on January 1, 2002 and each January 1st thereafter, the term of this
Agreement shall automatically be extended for one (1) additional year unless at
least ninety (90) days prior to such January 1st date, the Company or you shall
have given notice that this Agreement shall not be extended; and provided,
further, that this Agreement shall continue in effect for a period of twelve
(12) months beyond the date of a Change in Control of the Company if such Change
in Control of the Company shall have occurred prior to the end of the then
current term.

         3. Agreement to Provide Services; Right to Terminate.

         (a) Agreement to Provide Services. You agree to remain in the employ of
the Company during the term of this Agreement unless you terminate your
employment because of death or Disability or your termination is for Good Reason
following a Change in Control of the Company.

         (b) Right to Terminate Prior to Change in Control. This Agreement does
not constitute a contract of employment or impose on the Company any obligation
to retain you as an employee, to continue your current employment status or to
change any employment policies of the Company. Prior to any Change in Control of
the Company, the Company may terminate your employment at-will with or without
Cause at any time. If a Change in Control of the Company has occurred, the
Company may thereafter terminate your employment as herein provided, subject to
the Company's providing the benefits hereinafter specified in accordance with
the terms hereof.

         4. Benefit Payment Upon Fulfillment of Required Service Following
Change in Control. If a Change in Control of the Company has occurred then, so
long as you have

<PAGE>

remained in the employ of the Company during the term of this Agreement
(including the twelve (12) month period following such Change in Control (as
described in Section 2 hereof)), subject to the limitations set forth in Section
10 hereof, within five (5) business days following the end of such twelve (12)
month period the Company shall pay to you a lump sum cash payment equal to two
and one-half (2.5) times your compensation earned on account of your employment
with the Company during the twelve month (12) period prior to the date of the
Change in Control of the Company. For purposes of this Agreement, compensation
shall include your base salary plus any cash amounts received under incentive or
other bonus plans. No payment shall be paid under this Section 4 if you have not
remained in the employ of the Company during the term of this Agreement,
regardless of the reason your employment was earlier terminated.

         5. Welfare Benefit Plans upon a Change in Control. Following a Change
in Control of the Company, unless and until your employment by the Company is
terminated for Cause or Disability or you terminate your employment by the
Company other than for Good Reason, the Company shall maintain in full force and
effect, for the continued benefit of you and your dependents for a period
terminating on the earliest of (i) twelve (12) months after the Date of
Termination or (ii) the commencement date of equivalent benefits from a new
employer, each insured and self-insured employee welfare benefit Plan
(including, without limitation, group health, death, dental and disability
plans) in which you were entitled to participate immediately prior to the Change
in Control of the Company, provided that your continued participation is
possible under the general terms and provisions of such Plans (and any
applicable funding media) and provided that you continue to pay an amount equal
to your regular contribution under such Plans for such participation. If, at the
end of twelve (12) months after the date of the Date of Termination, you have
not previously received or are not then receiving equivalent benefits from a new
employer, the Company shall arrange, at your sole cost and expense, to enable
you to convert your and your dependents' coverage under such Plans to individual
policies or programs upon the same terms as employees of the Company may apply
for such conversions. In the event that your participation in any such Plan is
barred, the Company, at your sole cost and expense, shall arrange to have issued
for the benefit of you and your dependents individual policies of insurance
providing benefits substantially similar (on a federal, state and local income
and employment after-tax basis) to those which you otherwise would have been
entitled to receive under such Plans pursuant to this Section 5 or, if such
insurance is not available at a reasonable cost to the Company, the Company
shall otherwise provide you and your dependents equivalent benefits (on a
federal, state and local income and employment after-tax basis). You shall not
be required to pay any premiums or other charges in an amount greater than that
which you would have paid in order to participate in such Plans. Any welfare
benefits which are subject to continuation rights under state or federal law,
and which are provided by the Company pursuant to this Section 5, will be deemed
to be provided by the Company in satisfaction of such continuation requirements
to the extent permitted under such laws.

         6. Benefits Upon Termination of Employment Following Change in Control.

         (a) Disability or Death. During the term of this Agreement, for any
period following a Change in Control of the Company that you fail to perform
your duties as a result of incapacity due to physical or mental illness, you
shall continue to receive your compensation at the times, in

<PAGE>

the form and at the rate then in effect, and any benefits or awards under any
and all Plans shall continue to accrue during such period to the extent not
inconsistent with such Plans, until your employment is terminated on account of
Disability pursuant to and in accordance with the terms hereof. Thereafter, your
benefits shall be determined in accordance with the Plans (as in effect
immediately prior to a Change in Control of the Company) and as provided in
accordance with this Agreement. If your Death occurs during the term of this
Agreement, and after a Change in Control of the Company but prior to a
termination of your employment, you or your beneficiary (as provided under the
applicable Plans) shall receive all benefits or awards (including, without
limitation, both the cash and stock components) under any and all Plans as in
effect immediately prior to the Change in Control of the Company, and all
benefits to which you or your beneficiary may be entitled under the terms of
this Agreement.

         (b) Cause. If, during the term of this Agreement, your employment by
the Company shall be terminated for Cause following a Change in Control of the
Company, the Company shall pay you your compensation through the Date of
Termination at the times, in the form and at the rate in effect just prior to
the time a Notice of Termination is given plus any benefits or awards
(including, without limitation, both the cash and stock components) which
pursuant to the terms of any and all Plans have been earned or become payable,
but which have not yet been paid to you. Thereupon, except as otherwise provided
in this Agreement, the Company shall have no further obligations to you under
this Agreement.

         (c) Change in Control Termination. If, during the term of this
Agreement, after a Change in Control of the Company shall have occurred your
employment by the Company shall be terminated by the Company other than for
Cause or shall be terminated by you for Good Reason, then you shall be entitled,
without regard to any contrary provisions of any Plan, to the benefits as
provided below:

                           (i) Compensation. Subject to the limitations set
                  forth in Section 10 hereof, within five (5) business days
                  following the Date of Termination, the Company shall pay your
                  compensation through such Date of Termination in the form and
                  at the rate in effect just prior to the time a Notice of
                  Termination is given plus any benefits or awards (including,
                  without limitation, both the cash and stock components) which
                  pursuant to the terms of any and all Plans have been earned or
                  become payable, but which have not yet been paid to you.

                           (ii) Outplacement Service. The Company shall pay or
                  reimburse you for the costs, fees and expenses of reasonable
                  outplacement assistance services.

                           (iii) Severance. If your termination occurs under
                  this Subsection 6(c) within twelve (12) months following a
                  Change in Control of the Company, then, subject to the
                  limitations set forth in Section 10 hereof, within five (5)
                  business days following the Date of Termination, as severance
                  pay and in lieu of any further salary for periods subsequent
                  to the Date of Termination, the Company shall pay to you a
                  lump sum cash payment equal to two and one-half (2.5) times
                  your compensation earned on account of your employment with
                  the Company

<PAGE>

                  during the one (1) year period prior to the date of the Change
                  in Control of the Company. For purposes of this Agreement,
                  compensation shall include your base salary plus any cash
                  amounts received under incentive or other bonus plans.

         (d) No Setoff. The amount of any payment provided for in this Section 6
shall not be reduced, offset or subject to recovery by the Company by reason of
any compensation earned by you as the result of employment by another employer
after the Date of Termination or otherwise.

         7. Non-Competition; Non-Solicitation. You and the Company recognize
that your services to the Company are special and unique and that your
compensation and other benefits are partly in consideration of and conditioned
upon your not competing with the Company or its subsidiaries, and that a
covenant on your part not to compete during the term of your employment and
during a period of twelve (12) full calendar months thereafter is essential to
protect the business and goodwill of the Company. Accordingly, you agree that
during the term of your employment with the Company or any of its affiliates and
for a period of twelve (12) full calendar months following your termination of
employment for any reason, you shall not, directly or indirectly, alone or as a
partner, officer, director, shareholder or employee of any other firm or entity:
(a) engage in any commercial activity in competition with any substantial part
of the Company's business as conducted during the term of the Agreement or as of
the Date of Termination of your employment or with any substantial part of the
Company's contemplated business; (b) assist, solicit, entice, or induce (or
assist any other person or entity in soliciting, enticing or inducing) any
customer or potential customer (or agent, employee or consultant of any customer
or potential customer) with whom you had contact in the course of your
employment with the Company to deal with a competitor of the Company; and/or (c)
in any manner solicit, assist or encourage (or assist any other person or entity
in soliciting or encouraging) any other officer or employee of the Company to
work or otherwise provide services for you or for any entity in which you
participate in the ownership, management, operation or control of, or is
connected with in any manner as an independent contractor, consultant or
otherwise.. For purposes of this Section 7, "shareholder" shall not include
beneficial ownership of less than five percent (5%) of the combined voting power
of all issued and outstanding voting securities of a publicly held corporation
whose stock is traded on a major stock exchange or quoted on NASDAQ. You agree
that the services you render to the Company are unique and of extraordinary
character; that the Company has agreed to enter into this Agreement and to
compensate you in the manner provided for herein relying on that fact; that this
covenant not to compete is of the essence of this Agreement and that in the
event of a breach or threatened breach of the provisions of the covenant not to
compete the Company would suffer irreparable damage for which there is no
adequate remedy at law since damages would not be readily determinable.
Accordingly, in the event of a breach or a threatened breach by you of this
covenant, the Company shall be entitled to a temporary restraining order and an
injunction restraining you from any such breach issued by a court of competent
jurisdiction notwithstanding the provisions of Section 14 hereof. Should any
court of competent jurisdiction determine that any of the covenants set forth in
this Section 7 are invalid in any respect, the parties agree that the court so
holding may restrict such covenant in time or in area, or in both, or in any
other manner which the court determines sufficient to render the covenant
enforceable against you.

<PAGE>

         8. Successors; Binding Agreements.

         (a) Upon your written request, the Company will seek to have any
Successor by agreement in form and substance satisfactory to you, assent to the
fulfillment by the Company of the Company's obligations under this Agreement.
Failure of the Company to obtain such assent at least three (3) business days
prior to the time a Person becomes a Successor (or where the Company does not
have at least three (3) business days advance notice that a Person may become a
successor, within one (1) business day after having notice that such Person may
become or has become a Successor) shall constitute Good Reason for termination
by you of your employment and, if a Change in Control of the Company has
occurred, shall entitle you immediately to the benefits provided hereunder upon
delivery by you of a Notice of Termination.

         (b) This Agreement shall inure to the benefit of and be enforceable by
you, 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 if you had 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 be no such designee, to your estate.

         (c) For purposes of this Agreement, the "Company" shall include any
corporation or other entity which is the surviving or continuing entity in
respect of any merger, consolidation or other form of business combination in
which the Company ceases to exist.

         9. Withholding. All payments to be made to you under this Agreement
will be subject to required withholding of federal, state and local income and
employment taxes.

         10. Excess Payment Limitation. Notwithstanding anything in this
Agreement to the contrary, in the event that any payment or benefit received or
to be received by you in connection with a change in control of the Company or
termination of your employment (whether payable pursuant to the terms of this
Agreement or any other plan, contract, agreement or arrangement with the
Company, with any person whose actions result in a change in control of the
Company or with any person constituting a member of an "affiliated group" as
defined in Section 280G(d)(5) of the Internal Revenue Code of 1986, as amended
(the "Code"), with the Company or with any person whose actions result in a
change in control of the Company) (collectively, the "Total Payments") would not
be deductible (in whole or in part) by the Company or such other person making
such payment or providing such benefit solely as a result of Section 280G of the
Code, the amounts payable to you under this Agreement shall be reduced until no
portion of the Total Payments is not deductible solely as a result of Section
280G of the Code or such amounts payable to you under this Agreement are reduced
to zero. For purposes of this limitation: (a) no portion of the Total Payments
shall be taken into account which in the opinion of tax counsel selected by the
Company does not constitute a "parachute payment" within the meaning of
Section 280G(b)(2) of the Code (such as payments payable pursuant to the
Company's standard or general severance policies); (b) payments pursuant to this
Agreement shall be reduced only to the extent necessary so that the Total
Payments (other than those referred to in the immediately preceding clause (a))
in their entirety constitute reasonable compensation within the meaning of

<PAGE>

Section 280G(b)(4)(B) of the Code, in the opinion of the tax counsel referred to
in the immediately preceding clause (a); and (c) the value of any other non-cash
benefit or of any deferred cash payment included in the Total Payments shall be
determined by the Company's independent auditors in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code. In case of uncertainty as
to whether all or some portion of a payment is or is not payable to you under
this Agreement, the Company shall initially make the payment to you, and you
agree to refund to the Company any amounts ultimately determined not to have
been payable under the terms hereof.

         11. Notice. For the purposes of this Agreement, notices and all other
communications provided for in or required under this Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered or
when mailed by United States certified or registered mail, return receipt
requested, postage prepaid and addressed to each party's respective address set
forth on the first page of this Agreement (provided that all notices to the
Company shall be directed to the attention of the chairman of the board or
president of the Company, 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.

         12. 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.

         13. Limitation of Damages. If for any reason you believe the benefits
provisions of this Agreement have not been properly adhered to by the Company,
and if, pursuant to Section 14 hereof, it is determined that the Company has
not, in fact, properly adhered to the benefits provisions of this Agreement, the
sole and exclusive remedy to which you are entitled are the benefits payment to
which you are entitled under the provisions of this Agreement.

         14. Dispute Resolution. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
Minneapolis, Minnesota by three (3) arbitrators in accordance with the rules of
the American Arbitration Association then in effect. The decision of the
arbitrators shall be final and binding on both parties. Judgment may be entered
on the arbitrators' award in any court having jurisdiction. The arbitrators
shall strictly adhere to the sole and exclusive remedy set forth in Section 13
hereof and may not award or assess punitive damages against either party. Each
party shall bear its own costs and expenses of the arbitration and one-half
(1/2) of the fees and costs of the arbitrators.

         15. Related Agreements. To the extent that any provision of any other
Plan or agreement between the Company or any of its subsidiaries and you shall
limit, qualify or be inconsistent with any provision of this Agreement, then for
purposes of this Agreement, while the same shall remain in force, the provision
of this Agreement shall control and such provision of such other Plan agreement
shall be deemed to have been superseded, and to be of no force or effect, as if
such other agreement had been formally amended to the extent necessary to
accomplish such purpose.

<PAGE>

         16. Survival. The respective obligations of, and benefits afforded to,
the Company and you as provided in Sections 4, 5, 6, 7, 8(b), 14 and 15 of this
Agreement shall survive termination of this Agreement and shall remain in full
force and effect according to their terms.

         17. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

         18. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such modification, waiver or discharge is agreed to
in a writing signed by you and the chairman of the board or president of the
Company, provided, however, if you occupy those positions at the time, such
writings shall be signed by another officer of the Company at the direction of
the Board of Directors. No waiver by either party hereto at any time of any
breach by the other party hereto of, or of 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. Any and all previous written or oral agreements with
respect to compensation and/or benefits triggered by a Change in Control of the
Company or a similar event are hereby superseded and canceled, and no other
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. This Agreement and the legal
relations among the parties as to all matters, including, without limitation,
matters of validity, interpretation, construction, performance and remedies,
shall be governed by and construed in accordance with the internal laws of the
State of Minnesota. Headings are for purpose of convenience only and do not
constitute a part of this Agreement. The parties hereto agree to perform, or
cause to be performed, such further acts and deeds and shall execute and
deliver, or cause to be executed and delivered, such additional or supplemental
documents or instruments as may be reasonably required by the other party to
carry into effect the intent and purpose of this Agreement.

<PAGE>

         If this letter correctly sets forth our agreement on the subject matter
hereof, kindly sign and return to the Company the enclosed copy of this letter
which will then constitute our agreement on this subject.

Sincerely,

ROCHESTER MEDICAL CORPORATION

By:  /s/ Anthony J. Conway
     --------------------------
     Name:    Anthony J. Conway
     Title:   President and Chief Executive Officer

Agreed to this 21st day of November, 2000.

/s/ Anthony J. Conway
---------------------
Anthony J. Conway

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