Document:

Filed by Bowne Pure Compliance

Exhibit 10.11

AMENDED AND RESTATED

HILL-ROM HOLDINGS, INC.

STOCK INCENTIVE PLAN

R E C I T A L S

WHEREAS, in accordance with that certain Distribution Agreement (as defined below),
Hillenbrand Industries, Inc. (to be re-named Hill-Rom Holdings, Inc. prior to or effective upon the
Distribution referred to below and hereinafter referred to in these recitals as “RemainCo” or
“Hill-Rom Holdings, Inc.”) proposes to distribute its entire ownership interest in Batesville
Holdings, Inc. (to be re-named Hillenbrand, Inc. prior to or effective upon the Distribution and
hereinafter referred to in these recitals as “SpinCo or “Hillenbrand, Inc.”) through a pro-rata
distribution of all of the outstanding shares of SpinCo common stock then owned by RemainCo to the
holders of RemainCo common stock (“Distribution”); and

WHEREAS, RemainCo and SpinCo have entered into that certain Employee Matters Agreement (as
defined below) for the purpose of continuing benefits for the pre-Distribution directors, employees
and consultants of RemainCo and its subsidiaries; and

WHEREAS, several amendments have been made to the Plan (as defined below) in contemplation of
the Distribution and it is intended by this restatement of the Plan to incorporate all such
amendments and any other changes needed upon the occurrence of the Distribution into one plan
document.

SECTION 1. Purpose and Types of Awards

1.1 The purposes of the Hill-Rom Holdings, Inc. Stock Incentive Plan (the “Plan”) are to
enable Hill-Rom Holdings, Inc., formerly Hillenbrand Industries, Inc., (the “Company”) to attract,
retain and reward its employees, officers and directors, and strengthen the mutuality of interests
between such persons and the Company’s shareholders by offering such persons an equity interest in
the Company and thereby enabling them to participate in the long-term success and growth of the
Company.

1.2 Awards under the Plan may be in the form of (i) Stock Options; (ii) Stock Appreciation
Rights; (iii) Restricted Stock; (iv) Deferred Stock; and/or (v) Bonus Stock. Awards may be
free-standing or granted in tandem. If two awards are granted in tandem, the award holder may
exercise (or otherwise receive the benefit of) one award only to the extent he or she relinquishes
the tandem award.

SECTION 2. Definitions

“Board” shall mean the Board of Directors of the Company.

“Bonus Stock” shall mean an award described in Section 10 of the Plan.

 

 

 

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

“Committee” shall mean the committee of the Board designated by the Board to administer the
Plan, or if no committee is designated, and in any case with respect to awards to non-employee
directors, the entire Board.

“Common Stock” shall mean the common stock of the Company, without par value.

“Company” shall mean Hill-Rom Holdings, Inc., formerly Hillenbrand Industries, Inc., and its
successors.

“Deferred Stock” shall mean an award described in Section 9 of the Plan and also known as
Restricted Stock Units.

“Distribution” shall have the meaning set forth in the recitals.

“Distribution Agreement” shall mean the Distribution Agreement by and between Hillenbrand
Industries, Inc. and Batesville Holdings, Inc. dated effective as of March 14, 2008.

“Effective Time” shall mean the occurrence of the consummation of the transaction contemplated
by the Distribution Agreement.

“Employee” shall mean an employee of the Company or of any Subsidiary of the Company.

“Employee Matters Agreement” shall mean the Employee Matters Agreement by and between
Hillenbrand Industries, Inc. and Batesville Holdings, Inc. dated effective as of March 31, 2008.

“Fair Market Value” of the Common Stock on any date shall mean the value determined in good
faith by the Committee, by formula or otherwise; provided, however, that unless the Committee
determines to use a different measure, the fair market value of the Common Stock shall be the
average of the high and the low sales prices of the Common Stock (on such exchange or market as is
determined by the Board to be the primary market for the Common Stock) on the date in question (or
if shares of Common Stock were not traded on such date, then on the next preceding trading day on
which a sale of Common Stock occurred).

“Hillenbrand, Inc. Stock Incentive Plan” shall mean the Hillenbrand, Inc. Stock Incentive Plan
which is in effect immediately after the Effective Time.

“Incentive Option” shall mean a Stock Option granted under the Plan which both is designated
as an Incentive Option and qualifies as an incentive stock option within the meaning of Section 422
of the Code.

“Non-Employee
Director” shall mean a director of the Company who is not employed by the
Company or any of its Subsidiaries.

 

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“Non-Qualified Option” shall mean a Stock Option granted under the Plan, which either is
designated as a Non-Qualified Option or does not qualify as an incentive stock option within the
meaning of Section 422 of the Code.

“Optionee” shall mean any person who has been granted a Stock Option under the Plan or who is
otherwise entitled to exercise a Stock Option.

“Option Period” shall mean, with respect to any portion of a Stock Option, the period after
such portion has become exercisable and before it has expired or terminated.

“Plan” shall mean the Hill-Rom Holdings, Inc. Stock Incentive Plan.

“Relationship” shall mean the status of employee, officer, or director of the Company or any
Subsidiary of the Company.

“Restatement Effective Date” shall mean the date of the consummation of the transactions
contemplated by the Distribution Agreement.

“Restricted Stock” shall mean an award described in Section 8 of the Plan.

“Spinoff Awards” shall have the meaning set forth in Section 5.5 of the Hillenbrand, Inc.
Stock Incentive Plan.

“Stock Appreciation Right” shall mean an award described in Section 7 of the Plan.

“Stock Option” shall mean an Incentive Option or a Non-Qualified Option, and, unless the
context requires otherwise, shall include Director Options.

“Subsidiary” shall mean any corporation, partnership, joint venture or other entity in which
the Company owns, directly or indirectly, more than 50% of the ownership interests.

SECTION 3. Administration

3.1 The Plan shall be administered by the Committee. Notwithstanding anything to the contrary
contained herein, only the Board shall have authority to grant awards to Non-Employee Directors and
to amend and interpret such awards.

3.2 The Committee shall have the following authority and discretion with respect to awards
under the Plan: to grant and amend (provided however that no amendment shall impair the rights of
the award holder without his or her written consent) awards to eligible persons under the Plan; to
adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as
it shall deem advisable; to interpret the terms and provisions of the Plan and any award granted
under the Plan; and to make all factual and other determinations necessary or advisable for the
administration of the Plan. In particular, and without limiting its authority and powers, the
Committee shall have the authority and discretion:

(a) to select the persons to whom awards will be granted from among those eligible;

 

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(b) to determine the number of shares of Common Stock to be covered by each award
granted hereunder subject to the limitations contained herein;

(c) to determine the terms and conditions of any award granted hereunder, including,
but not limited to, any vesting or other restrictions based on such continued employment,
performance objectives and such other factors as the Committee may establish, and to
determine whether the terms and conditions of the award have been satisfied;

(d) to determine the treatment of awards upon an Employee’s retirement, disability,
death, termination for cause or other termination of employment, or during a leave of
absence or upon a Non-Employee Director’s termination of Relationship as allowed by law;

(e) to determine that the award holder has no rights with respect to any dividends
declared with respect to any shares covered by an award or that amounts equal to the amount
of any dividends declared with respect to the number of shares covered by an award (i) will
be paid to the award holder currently or (ii) will be deferred and deemed to be reinvested
or (iii) will otherwise be credited to the award holder;

(f) to determine whether, to what extent, and under what circumstances Common Stock and
other amounts payable with respect to an award will be deferred either automatically or at
the election of an award holder, including providing for and determining the amount (if any)
of deemed earnings on any deferred amount during any deferral period;

(g) to amend the terms of any award, prospectively or retroactively; provided, however,
that no amendment shall impair the rights of the award holder without his or her written
consent;

(h) after considering any accounting impact to the Company, to substitute new Stock
Options for previously granted Stock Options, or for options granted under other plans or
agreements, in each case including previously granted options having higher option prices;

(i) to determine, pursuant to a formula or otherwise, the Fair Market Value of the
Common Stock on a given date;

(j) after considering any accounting impact to the Company, to provide that the shares
of Common Stock received as a result of an award shall be subject to a right of repurchase
by the Company and/or a right of first refusal, in each case subject to such terms and
conditions as the Committee may specify;

(k) to adopt one or more sub-plans, consistent with the Plan, containing such
provisions as may be necessary or desirable to enable awards under the
Plan to comply with the laws of other jurisdictions and/or qualify for preferred tax
treatment under such laws; and

(l) to delegate such administrative duties as it may deem advisable to one or more of
its members or to one or more Employees or agents.

 

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3.3 The Committee shall have the right to designate awards as “Performance Awards.” The grant
or vesting of a Performance Award shall be subject to the achievement of performance objectives
established by the Committee based on one or more of the following criteria, in each case applied
to the Company on a consolidated basis and/or to a business unit and which the Committee may use as
an absolute measure, as a measure of improvement relative to prior performance, or as a measure of
comparable performance relative to a peer group of companies: sales, operating profits, operating
profits before taxes, operating profits before interest expense and taxes, net earnings, earnings
per share, return on equity, return on assets, return on invested capital, total shareholder
return, cash flow, debt to equity ratio, market share, stock price, economic value added, and
market value added.

3.4 All determinations and interpretations made by the Committee pursuant to the provisions of
the Plan shall be final and binding on all persons, including the Company and award holders.
Determinations by the Committee under the Plan relating to the form, amount, and terms and
conditions of awards need not be uniform, and may be made selectively among persons who receive or
are eligible to receive awards under the Plan, whether or not such persons are similarly situated.

3.5 The Committee shall act by a majority of its members at a meeting (present in person or by
conference telephone) or by majority written consent.

3.6 No member of the Board or the Committee, nor any officer or Employee of the Company or its
Subsidiaries acting on behalf of the Board or the Committee, shall be personally liable for any
action, determination or interpretation taken or made with respect to the Plan or any award
hereunder. The Company shall indemnify all members of the Board and the Committee and all such
officers and Employees acting on their behalf, to the extent permitted by law, from and against any
and all liabilities, costs and expenses incurred by such persons as a result of any act, or
omission to act, in connection with the performance of such persons’ duties, responsibilities and
obligations under the Plan.

SECTION 4. Stock Subject to Plan

4.1 The total number of shares of Common Stock which may be issued under the Plan shall be
9,797,578, subject to adjustment as provided in Section 4.4. The amounts reflected in the prior
sentence are adjusted amounts after taking into account the Distribution as set forth in Section
4.4 below. Such shares may consist of authorized but unissued shares or shares that have been
issued and reacquired by the Company. The exercise of a Stock Appreciation Right for cash or the
payment of any award in cash shall not count against this share limit.

 

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4.2 To the extent a Stock Option is surrendered for cash or terminates without having been
exercised, or an award terminates without the holder having received payment of the
award, or shares awarded are forfeited, the shares subject to such award shall again be
available for distribution in connection with future awards under the Plan. Shares of Common Stock
equal in number to the shares surrendered in payment of the option price, and shares of Common
Stock which are withheld in order to satisfy federal, state or local tax liability shall count
against the share limit set forth in Section 4.1.

4.3 No Employee shall be granted Stock Options and/or Stock Appreciation Rights with respect
to more than 370,096 shares of Common Stock in any fiscal year, and no Employee shall be granted
Restricted Stock, Deferred Stock and/or Bonus Stock awards with respect to more than 185,048 shares
of Common Stock in any fiscal year, subject to adjustment as provided in Section 4.4. The amounts
reflected in the prior sentence are adjusted amounts after taking into account the Distribution as
set forth in Section 4.4 below. Notwithstanding the foregoing, any Spinoff Awards are not awards
or grants under this Plan and shall not count against the foregoing fiscal year award limits under
this Plan.

4.4 In the event of any merger, reorganization, consolidation, sale of substantially all
assets, recapitalization, stock dividend, stock split, spin-off, split-up, split-off, distribution
of assets or other change in corporate structure affecting the Common Stock such that an adjustment
is determined by the Board in its discretion to be appropriate, after considering any accounting
impact to the Company, in order to prevent dilution or enlargement of benefits under the Plan, then
the Board shall, in such a manner as it may in its discretion deem equitable, adjust any or all of
(i) the aggregate number and kind of shares reserved for issuance under the Plan, and (ii) the
number and kind of shares as to which awards may be granted to any individual in any fiscal year.
In the event of any merger, reorganization, consolidation, sale of substantially all assets,
recapitalization, stock dividend, stock split, spin-off, split-up, split-off, distribution of
assets or other change in corporate structure affecting the Common Stock subject to an outstanding
award, the number and kind of shares of Common Stock or other securities which are subject to this
Plan or subject to any awards theretofore granted, and the exercise prices, shall be appropriately
and equitably adjusted by the Board so as to maintain the proportionate number of shares or other
securities without changing the aggregate exercise price, if any.

In addition, upon the dissolution or liquidation of the Company or upon any reorganization,
merger, or consolidation as a result of which the Company is not the surviving corporation (or
survives as a wholly-owned subsidiary of another corporation), or upon a sale of substantially all
the assets of the Company, the Board may, after considering any accounting impact to the Company,
take such action as it in its discretion deems appropriate to (i) accelerate the time when awards
vest and/or may be exercised and/or may be paid, (ii) cash out outstanding Stock Options and/or
other awards at or immediately prior to the date of such event, (iii) provide for the assumption of
outstanding Stock Options or other awards by surviving, successor or transferee corporations,
(iv) provide that in lieu of shares of Common Stock of Company, the award recipient shall be
entitled to receive the consideration he would have received in such transaction in exchange for
such shares of Common Stock (or the Fair Market Value thereof in cash), and/or (v) provide that
Stock Options shall be exercisable for a period of at least 10 business days from the date of
receipt of a notice from the Company of such proposed event, following the expiration of which
period any unexercised Stock Options shall terminate.

 

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The Board’s determination as to which adjustments shall be made under this Section 4.4 and the
extent thereof shall be final, binding and conclusive.

4.5 No fractional shares shall be issued or delivered under the Plan. The Committee shall
determine whether the value of fractional shares shall be paid in cash or other property, or
whether such fractional shares and any rights thereto shall be cancelled without payment.

SECTION 5. Eligibility, Spinoff Awards and Adjusted Awards

5.1 The persons who are eligible for awards under Sections 6, 7, 8, 9, and 10 of the Plan are
Employees, officers and directors of the Company or of any Subsidiary of the Company. In addition,
awards under such Sections may be granted to prospective Employees, officers, or directors but such
awards shall not become effective until the recipient’s commencement of employment or service with
the Company or a Subsidiary. Incentive Options may be granted only to Employees and prospective
Employees. Award recipients under the Plan shall be selected from time to time by the Committee,
in its sole discretion, from among those eligible. In addition to the persons eligible under
Section 5.1 above, all persons to receive awards of Stock Options or Deferred Stock with respect to
the Common Stock as set forth in Article 7 of the Employee Matters Agreement are eligible for
awards under Section 6 and Section 9 of the Plan.

5.2 Non-Employee Directors shall be granted awards under Section 12 in addition to any awards
which may be granted to them under other Sections of the Plan.

5.3 Any awards of Stock Options or Deferred Stock under this Plan which are outstanding
immediately prior to the Effective Time and are held by individuals receiving Spinoff Awards under
Section 5.3 of the Hillenbrand, Inc. Stock Incentive Plan, other than awards of Stock Options or
Deferred Stock held by individuals who are receiving Spinoff Awards pursuant to Section 7.1(c)
and/or Section 7.2(c) or (d) of the Employee Matters Agreement, are cancelled as of the Effective
Time and shall have no force or effect hereunder, and any holder of such cancelled award of Stock
Option or Deferred Stock shall have no claim under such cancelled award or under the Plan.

5.4 Except as provided in Section 5.3 above, all awards of Stock Options or Deferred Stock
which are outstanding immediately prior to the Effective Time shall be adjusted as set forth in
Section 7.1 and 7.2 of the Employee Matters Agreement.

SECTION 6. Stock Options

6.1 The Stock Options awarded to eligible persons under the Plan may be of two types:
(i) Incentive Options and (ii) Non-Qualified Options. To the extent that any Stock Option granted
to an Employee does not qualify as an Incentive Option, it shall constitute a Non-Qualified Option.
All Stock Options awarded to persons who are not Employees shall be Non-Qualified Options.

 

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6.2 Subject to the following provisions, Stock Options awarded under Section 6 of the Plan
shall be in such form and shall have such terms and conditions as the Committee may determine.

(a) Option Price. The option price per share of Common Stock purchasable under
a Stock Option shall be determined by the Committee and may not be less than the Fair Market
Value of the Common Stock on the date of the award of the Stock Option (or, with respect to
awards to prospective Employees, on the first date of employment).

(b) Option Term. The term of each Stock Option shall be fixed by the
Committee.

(c) Exercisability. Stock Options shall be exercisable and shall vest at such
time or times and subject to such terms and conditions as shall be determined by the
Committee. The Committee may impose different schedules for exercisability and vesting.
After considering any accounting impact to the Company, the Committee may waive any exercise
or vesting provisions or accelerate the exercisability or vesting of the Stock Option at any
time in whole or in part.

(d) Method of Exercise. Stock Options may be exercised in whole or in part at
any time during the Option Period by giving the Company notice of exercise in the form
approved by the Committee (which may be written or electronic) specifying the number of
whole shares to be purchased, accompanied by payment of the aggregate option price for such
 shares. Payment of the option price shall be made in such manner as the Committee may
provide in the award, which may include (i) cash (including cash equivalents), (ii) delivery
(either by actual delivery of the shares or by providing an affidavit affirming ownership of
the shares) of shares of Common Stock already owned by the Optionee for at least six months,
(iii) broker-assisted “cashless exercise” in which the Optionee delivers a notice of
exercise together with irrevocable instructions to a broker acceptable to the Company to
sell shares of Common Stock (or a sufficient portion of such shares) acquired upon exercise
of the Stock Option and remit to the Company a sufficient portion of the sale proceeds to
pay the total option price and any withholding tax obligation resulting from such exercise,
(iv) any other manner permitted by law, or (v) any combination of the foregoing.

(e) No Shareholder Rights. An Optionee shall have no rights to dividends or
other rights of a shareholder with respect to shares subject to a Stock Option until the
Optionee has duly exercised the Stock Option and a certificate for such shares has been duly
issued (or the Optionee has otherwise been duly recorded as the owner of the shares on the
books of the Company).

 

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(f) Termination of Employment or Relationship. Following the termination of an
Optionee’s employment or other Relationship with the Company or its Subsidiaries, the Stock
Option shall be exercisable to the extent determined by the Committee. The Committee may
provide different post-termination exercise provisions which may vary based on the nature of
and reason for the termination. The Committee
may provide that, notwithstanding the option term fixed pursuant to Section 6.2(b), a
Non-Qualified Option which is outstanding on the date of an Optionee’s death shall remain
outstanding for an additional period after the date of such death. The Committee shall have
absolute discretion to determine the date and circumstances of any termination of employment
or other Relationship.

(g) Non-transferability. Unless otherwise provided by the Committee, (i) Stock
Options shall not be transferable by the Optionee other than by will or by the laws of
descent and distribution, and (ii) during the Optionee’s lifetime, all Stock Options shall
be exercisable only by such Optionee. The Committee, in its sole discretion, may permit
Stock Options to be transferred to such other transferees and on such terms and conditions
as may be determined by the Committee.

(h) Surrender Rights. The Committee may, after considering any accounting
impact to the Company, provide that Stock Options may be surrendered for cash upon any terms
and conditions set by the Committee.

6.3 Notwithstanding the provisions of Section 6.2, Incentive Options shall be subject to the
following additional restrictions:

(a) Option Term. No Incentive Option shall be exercisable more than ten years
after the date such Incentive Stock Option is awarded.

(b) Additional Limitations for 10% Shareholders. No Incentive Option granted
to an Employee who owns more than 10% of the total combined voting power of all classes of
stock of the Company or any of its parent or subsidiary corporations, as defined in Section
424 of the Code, shall (i) have an option price which is less than 110% of the Fair Market
Value of the Common Stock on the date of award of the Incentive Option or (ii) be
exercisable more than five years after the date such Incentive Option is awarded.

(c) Exercisability. The aggregate Fair Market Value (determined as of the time
the Incentive Option is granted) of the shares with respect to which Incentive Options
(granted under the Plan and any other plans of the Company, its parent corporation or
subsidiary corporations, as defined in Section 424 of the Code) are exercisable for the
first time by an Optionee in any calendar year shall not exceed $100,000.

(d) Notice of Disqualifying Disposition. An Optionee’s right to exercise an
Incentive Option shall be subject to the Optionee’s agreement to notify the Company of any
“disqualifying disposition” (for purposes of Section 422 of the Code) of the shares acquired
upon such exercise.

(e) Non-transferability. Incentive Options shall not be transferable by the
Optionee, other than by will or by the laws of descent and distribution. During the
Optionee’s lifetime, all Incentive Options shall be exercisable only by such Optionee.

(f) Last Grant Date. No Incentive Option shall be granted more than ten years
after the earlier of the date of adoption of the Plan by the Board or approval of the Plan
by the Company’s shareholders.

 

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The Committee may, with the consent of the Optionee, amend an Incentive Option in a manner that
would cause loss of Incentive Option status, provided the Stock Option as so amended satisfies the
requirements of Section 6.2.

6.4 Substitute Options. In connection with a merger or consolidation of an entity
with the Company or the acquisition by the Company of property or stock of an entity, the Committee
may grant Stock Options in substitution for any options or other stock awards or stock-based awards
granted by such entity or an affiliate thereof. Such substitute Stock Options may be granted on
such terms as the Committee deems appropriate in the circumstances, notwithstanding any limitations
on Stock Options contained in other provisions of this Section 6.

SECTION 7. Stock Appreciation Rights

7.1 A Stock Appreciation Right shall entitle the holder thereof to receive, for each share as
to which the award is granted, payment of an amount, in cash, shares of Common Stock, or a
combination thereof, as determined by the Committee, equal in value to the excess of the Fair
Market Value of a share of Common Stock on the date of exercise over the Fair Market Value of a
share of Common Stock on the day such Stock Appreciation Right was granted. Any such award shall
be in such form and shall have such terms and conditions as the Committee may determine. The grant
shall specify the number of shares of Common Stock as to which the Stock Appreciation Right is
granted.

7.2 The Committee may provide that a Stock Appreciation Right may be exercised only within the
60-day period following occurrence of a Change in Control (as defined in Section 14.2) (such Stock
Appreciation Right being referred to herein as a “Limited Stock Appreciation Right”). The
Committee may also provide that in the event of a Change in Control the amount to be paid upon
exercise of a Stock Appreciation Right shall be based on the Change in Control Price (as defined in
Section 14.3).

SECTION 8. Restricted Stock

Subject to the following provisions, all awards of Restricted Stock shall be in such form and
shall have such terms and conditions as the Committee may determine:

(a) The Restricted Stock award shall specify the number of shares of Restricted Stock
to be awarded, the price, if any, to be paid by the recipient of the Restricted Stock and
the date or dates on which, or the conditions upon the satisfaction of which, the Restricted
Stock will vest. The grant and/or the vesting of Restricted Stock may be conditioned upon
the completion of a specified period of service with the Company and/or its Subsidiaries,
upon the attainment of specified performance objectives, or upon such other criteria as the
Committee may determine.

(b) Stock certificates representing the Restricted Stock awarded under the Plan shall
be registered in the award holder’s name, but the Committee may direct
that such certificates be held by the Company on behalf of the award holder. Except as
may be permitted by the Committee, no share of Restricted Stock may be sold, transferred,
assigned, pledged or otherwise encumbered by the award holder until such share has vested in
accordance with the terms of the Restricted Stock award. At the time Restricted Stock
vests, a certificate for such vested shares shall be delivered to the award holder (or his
or her designated beneficiary in the event of death), free of all restrictions.

 

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(c) The Committee may provide that the award holder shall have the right to vote and/or
receive dividends on Restricted Stock. Unless the Committee provides otherwise, Common
Stock received as a dividend on, or in connection with a stock split of, Restricted Stock
shall be subject to the same restrictions as the Restricted Stock.

(d) Except as may be provided by the Committee, in the event of an award holder’s
termination of employment or other Relationship before all of his or her Restricted Stock
has vested, or in the event any conditions to the vesting of Restricted Stock have not been
satisfied prior to any deadline for the satisfaction of such conditions set forth in the
award, the shares of Restricted Stock which have not vested shall be forfeited, and the
Committee may provide that (i) any purchase price paid by the award holder shall be returned
to the award holder or (ii) a cash payment equal to the Restricted Stock’s Fair Market Value
on the date of forfeiture, if lower, shall be paid to the award holder.

(e) The Committee may waive, in whole or in part, any or all of the conditions to
receipt of, or restrictions with respect to, any or all of the award holder’s Restricted
Stock (except that the Committee may not waive conditions or restrictions with respect to
awards intended to qualify under Section 162(m) of the Code unless such waiver would not
cause the award to fail to qualify as “performance-based compensation” within the meaning of
Section 162(m) of the Code).

SECTION 9. Deferred Stock Awards (also known as Restricted Stock Units)

Subject to the following provisions, all awards of Deferred Stock shall be in such form and
shall have such terms and conditions as the Committee may determine:

(a) The Deferred Stock award shall specify the number of shares of Deferred Stock to be
awarded and the duration of the period (the “Deferral Period”) during which, and the
conditions under which, receipt of the Common Stock will be deferred. The Committee may
condition the grant or vesting of Deferred Stock, or receipt of Common Stock or cash at the
end of the Deferral Period, upon the completion of a specified period of service with the
Company and/or its Subsidiaries, upon the attainment of specified performance objectives, or
upon such other criteria as the Committee may determine.

(b) Except as may be provided by the Committee, Deferred Stock awards may not be sold,
assigned, transferred, pledged or otherwise encumbered during the Deferral Period.

 

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(c) At the expiration of the Deferral Period, the award holder (or his or her
designated beneficiary in the event of death) shall receive (i) certificates for the number
of shares of Common Stock equal to the number of shares covered by the Deferred Stock award,
(ii) cash equal to the Fair Market Value of such Common Stock, or (iii) a combination of
 shares and cash, as the Committee may determine.

(d) Except as may be provided by the Committee, in the event of an award holder’s
termination of employment or other Relationship before the Deferred Stock has vested, his or
her Deferred Stock award shall be forfeited.

(e) The Committee may waive, in whole or in part, any or all of the conditions to
receipt of, or restrictions with respect to, Common Stock or cash under a Deferred Stock
award (except that the Committee may not waive conditions or restrictions with respect to
awards intended to qualify under Section 162(m) of the Code unless such waiver would not
cause the award to fail to qualify as “performance-based compensation” within the meaning of
Section 162(m) of the Code).

SECTION 10. Bonus Stock Awards

The Committee may award Bonus Stock to any eligible award recipient subject to such terms and
conditions as the Committee shall determine. The grant of Bonus Stock may, but need not, be
conditioned upon the attainment of specified performance objectives or upon such other criteria as
the Committee may determine. The Committee may waive such conditions in whole or in part (except
that the Committee may not waive conditions or restrictions with respect to awards intended to
qualify under Section 162(m) of the Code unless such waiver would not cause the award to fail to
qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code).
Unless otherwise specified by the Committee, no money shall be paid by the recipient for the Bonus
Stock. Alternatively, the Committee may, after considering any accounting impact to the Company,
offer eligible employees the opportunity to purchase Bonus Stock at a discount from its Fair Market
Value. The Bonus Stock award shall be satisfied by the delivery of the designated number of shares
of Common Stock which are not subject to restriction.

SECTION 11. Election to Defer Deferred Stock Awards or Bonus Stock Awards

The Committee may permit an award recipient to elect to defer payment of an award for a
specified period or until a specified event, upon such terms as are determined by the Committee.
An award holder may elect to defer the distribution date of a Deferred Stock Award or Bonus Stock
Award provided that such election is made and delivered to the Company in compliance with Section
409A of the Code, when applicable.

 

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SECTION 12. Non-Employee Director Options

The Board shall have the discretion to determine the number and types of awards to be granted
to Non-Employee Directors and the terms of such awards, including but not limited to the
exercisability and the effect of a director’s termination of service.

SECTION 13. Tax Withholding

13.1 Each award holder shall, no later than the date as of which an amount with respect to an
award first becomes includible in such person’s gross income for applicable tax purposes, pay to
the Company, or make arrangements satisfactory to the Committee regarding payment of, any federal,
state, local or other taxes of any kind required by law to be withheld with respect to the award.
The obligations of the Company under the Plan shall be conditional on such payment or arrangements.
The Company (and, where applicable, its Subsidiaries), shall, to the extent permitted by law, have
the right to deduct the minimum amount of any required tax withholdings from any such taxes from
any payment of any kind otherwise due to the award holder.

13.2 To the extent permitted by the Committee, and subject to such terms and conditions as the
Committee may provide, an Employee may elect to have the minimum amount of any required tax
withholdings with respect to any awards hereunder, satisfied by (i) having the Company withhold
shares of Common Stock otherwise deliverable to such person with respect to the award or
(ii) delivering to the Company shares of unrestricted Common Stock already owned by the Employee
for at least six months. Alternatively, the Committee may require that a portion of the shares of
Common Stock otherwise deliverable be applied to satisfy the withholding tax obligations with
respect to the award.

SECTION 14. Change in Control

14.1 In the event of a Change in Control, unless otherwise determined by the Committee at the
time of grant or by amendment (with the award holder’s consent) of such grant:

(a) all outstanding Stock Options (including Director Options) and all outstanding
Stock Appreciation Rights (including Limited Stock Appreciation Rights) awarded under the
Plan shall become fully exercisable and vested;

(b) the restrictions and vesting conditions applicable to any outstanding Restricted
Stock and Deferred Stock awards under the Plan shall lapse and such shares and awards shall
be deemed fully vested;

(c) the Committee may, in its sole discretion, accelerate the payment date of all
Restricted Stock and Deferred Stock awards; and

(d) to the extent the cash payment of any award is based on the Fair Market Value of
Common Stock, such Fair Market Value shall be the Change in Control Price.

 

-13-

 

14.2 A “Change in Control” shall be deemed to occur on:

(i) the date that any person, corporation, partnership, syndicate, trust, estate or other
group acting with a view to the acquisition, holding or disposition of securities of the Company,
becomes, directly or. indirectly, the beneficial owner, as defined in Rule 13d-3 under the
Securities Exchange Act of 1934 (“Beneficial Owner”), of securities of the Company representing 35%
or more of the voting power of all securities of the Company having the right under ordinary
circumstances to vote at an election of the Board (“Voting Securities”), other than by reason of
(x) the acquisition of securities of the Company by the Company or any of its Subsidiaries or any
employee benefit plan of the Company or any of its Subsidiaries, (y) the acquisition of securities
of the Company directly from the Company, or (z) the acquisition of securities of the Company by
one or more members of the Hillenbrand Family (which term shall mean descendants of John A.
Hillenbrand and their spouses, trusts primarily for their benefit or entities controlled by them);

(ii) the consummation of a merger or consolidation of the Company with another corporation
unless

(A) the shareholders of the Company, immediately prior to the merger or consolidation,
beneficially own, immediately after the merger or consolidation, shares entitling such shareholders
to 50% or more of the voting power of all securities of the corporation surviving the merger or
consolidation having the right under ordinary circumstances to vote at an election of directors in
substantially the same proportions as their ownership, immediately prior to such merger or
consolidation, of Voting Securities of the Company;

(B) no person, corporation, partnership, syndicate, trust, estate or other group beneficially
owns, directly or indirectly, 35% or more of the voting power of the outstanding voting securities
of the corporation resulting from such merger or consolidation except to the extent that such
ownership existed prior to such merger or consolidation; and

(C) the members of the Company’s Board, immediately prior to the merger or consolidation,
constitute, immediately after the merger or consolidation, a majority of the board of directors of
the corporation issuing cash or securities in the merger;

(iii) the date on which a majority of the members of the Board consist of persons other than
Current Directors (which term shall mean any member of the Board on the date hereof and any member
whose nomination or election has been approved by a majority of Current Directors then on the
Board);

(iv) the consummation of a sale or other disposition of all or substantially all of the assets
of the Company; or

(v) the date of approval of the shareholders of the Company of a plan of complete liquidation
of the Company.

14.3 “Change in Control Price” means the highest price per share of Common Stock paid in any
transaction reported on any national market or securities exchange where the Common Stock is
traded, or paid or offered in any transaction related to a Change in Control at any time during the
90-day period ending with the Change in Control. Notwithstanding the foregoing sentence, in the
case of Stock Appreciation Rights granted in tandem with Incentive
Options, the Change in Control Price shall be the highest price paid on the date on which the
Stock Appreciation Right is exercised.

 

-14-

 

SECTION 15. General Provisions

15.1 Each award under the Plan shall be subject to the requirement that, if at any time the
Committee shall determine that (i) the listing, registration or qualification of the Common Stock
subject or related thereto upon any securities exchange or market or under any state or federal
law, or (ii) the consent or approval of any government regulatory body or (iii) an agreement by the
recipient of an award with respect to the disposition of Common Stock, is necessary or desirable in
order to satisfy any legal requirements, or (iv) the issuance, sale or delivery of any shares of
Common Stock is or may in the circumstances be unlawful under the laws or regulations of any
applicable jurisdiction, the right to exercise such Stock Option shall be suspended, such award
shall not be granted and such shares will not be issued, sold or delivered, in whole or in part,
unless such listing, registration, qualification, consent, approval or agreement shall have been
effected or obtained free of any conditions not acceptable to the Committee, and the Committee
determines that the issuance, sale or delivery of the shares is lawful. The application of this
Section shall not extend the term of any Stock Option or other award. The Company shall have no
obligation to effect any registration or qualification of the Common Stock under federal or state
laws or to compensate the award holder for any loss caused by the implementation of this Section
15.1.

15.2 The Committee may provide, at the time of grant or by amendment with the award holder’s
consent, that an award and/or Common Stock acquired under the Plan shall be forfeited, including
after exercise or vesting, if within a specified period of time the award holder engages in any of
the conduct described below (“Disqualifying Conduct”). Disqualifying Conduct shall mean (i) the
award holder’s performance of service for a competitor of the Company and/or its Subsidiaries,
including service as an employee, director, or consultant, or the establishing by the award holder
of a business which competes with the Company and/or its Subsidiaries, (ii) the award holder’s
solicitation of employees or customers of the Company and/or its Subsidiaries (iii) the award
holder’s improper use or disclosure of confidential information of the Company and/or its
Subsidiaries or (iv) material misconduct by the award holder in the performance of such award
holder’s duties for the Company and/or its Subsidiaries, as determined by the Committee.

15.3 Nothing set forth in this Plan shall prevent the Board from adopting other or additional
compensation arrangements.

15.4 Nothing in the Plan nor in any award hereunder shall confer upon any award holder any
right to continuation of his or her employment by or other Relationship with the Company or its
Subsidiaries, or interfere in any way with the rights of any such company to terminate such
employment or other Relationship.

15.5 Neither the Plan nor any award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company or Subsidiary and an award
recipient, and no award recipient will, by participation in the Plan, acquire any right in any
specific Company property, including any property the Company may set aside in
connection with the Plan. To the extent that any award recipient acquires a right to receive
payments from the Company or any Subsidiary pursuant to an award, such right shall not be greater
than the right of an unsecured general creditor of the Company or its Subsidiaries.

 

-15-

 

15.6 The Plan and all awards hereunder shall be governed by the laws of the State of Indiana
without giving effect to conflict of laws principles.

SECTION 16. Amendments and Termination

16.1 The Plan shall be of unlimited duration. The Board may discontinue the Plan at any time
and may amend it from time to time. No amendment or discontinuation of the Plan shall adversely
affect any award previously granted without the award holder’s written consent. Amendments may be
made without shareholder approval except as required to satisfy applicable laws or regulations or
the requirements of any stock exchange or market on which the Common Stock is listed or traded.

16.2 The Committee may amend the terms of any award prospectively or retroactively; provided,
however, that no amendment shall impair the rights of the award holder without his or her written
consent.

SECTION 17. Effective Date of Plan as Amended and Restated

17.1 The Plan was originally effective January 15, 2002. The Plan is amended and restated
effective as of the Restatement Effective Date.

 

-16-Filed by Bowne Pure Compliance

Exhibit 10.12

EMPLOYMENT AGREEMENT

P R E A M B L E

This Employment Agreement defines the essential terms and conditions of our employment

relationship with you. The subjects covered in this Agreement are vitally important to you and to

the Company. Thus, you should read the document carefully and ask any questions before

signing the Agreement. Given the importance of these matters to you and the Company, you are

required to sign the Agreement as a condition of employment.

This EMPLOYMENT AGREEMENT, dated and effective this 31st day of March 2008 is
entered into by and between Hill-Rom Company, Inc. (“Company”) and Richard G. Keller (“Employee”).

W I T N E S S E T H:

WHEREAS, the Company and its affiliated entities are engaged in the healthcare industry
throughout the United States and abroad including, but not limited to, the design, manufacture,
sale, service and rental of hospital beds and stretchers, hospital furniture, medical-related
architectural products, specialty sleep surfaces (including therapeutic surfaces), air clearing
devices, biomedical and asset management services, as well as other medical-related accessories,
devices, products and services;

WHEREAS, the Company is willing to employ Employee in an executive or managerial position and
Employee desires to be employed by the Company in such capacity based upon the terms and conditions
set forth in this Agreement;

WHEREAS, in the course of the employment contemplated under this Agreement and as a
continuation of Employee’s past employment with the Company, if applicable, it will be necessary
for Employee to acquire and maintain knowledge of certain trade secrets and other confidential and
proprietary information regarding the Company as well as any of its parent, subsidiary and/or
affiliated entities (hereinafter jointly referred to as the “Companies”); and

WHEREAS, the Company and Employee (collectively referred to as the “Parties”) acknowledge and
agree that the execution of this Agreement is necessary to memorialize the terms and conditions of
their employment relationship as well as safeguard against the unauthorized disclosure or use of
the Company’s confidential information and to otherwise preserve the goodwill and ongoing business
value of the Company;

NOW THEREFORE, in consideration of Employee’s employment, the Company’s willingness to
disclose certain confidential and proprietary information to Employee and the mutual covenants
contained herein as well as other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:

 

 

 

	1.	 	Employment.  As of the effective date of this Agreement, the Company agrees to employ
Employee and Employee agrees to serve as Vice President Corporate Controller. Employee agrees
to perform all duties and responsibilities traditionally assigned to, or falling within the
normal responsibilities of, an individual employed in the above-referenced position. Employee
also agrees to perform any and all additional duties or responsibilities as may be assigned by
the Company in its sole discretion. The Parties acknowledge that both this title and the
underlying duties may change.

	2.	 	Best Efforts and Duty of Loyalty.  During the term of employment with the Company,
Employee covenants and agrees to exercise reasonable efforts to perform all assigned duties in
a diligent and professional manner and in the best interest of the Company. Employee agrees
to devote his full working time, attention, talents, skills and best efforts to further the
Company’s business and agrees not to take any action, or make any omission, that deprives the
Company of any business opportunities or otherwise act in a manner that conflicts with the
best interest of the Company or is otherwise detrimental to its business. Employee agrees not
to engage in any outside business activity, whether or not pursued for gain, profit or other
pecuniary advantage, without the express written consent of the Company. Employee shall act
at all times in accordance with the Company’s Code of Ethical Business Conducts, and all other
applicable policies which may exist or be adopted by the Company from time to time.

	3.	 	At-Will Employment.  Subject to the terms and conditions set forth below, Employee
specifically acknowledges and accepts such employment on an “at-will” basis and agrees that
both Employee and the Company retain the right to terminate this relationship at any time,
with or without cause, for any reason not prohibited by applicable law upon notice as required
by this Agreement. Employee acknowledges that nothing in this Agreement is intended to
create, nor should be interpreted to create, an employment contract for any specified length
of time between the Company and Employee.

	4.	 	Compensation.  For all services rendered by Employee on behalf of, or at the request
of, the Company, Employee shall be paid as follows:

	 	(a)	 	A base salary at the bi-weekly rate of Eight Thousand One Hundred One Dollars and
Fifteen Cents ($8,101.15), less usual and ordinary deductions;

	 	(b)	 	Incentive compensation, payable solely at the discretion of the Company, pursuant to
the Company’s existing Incentive Compensation Program or any other program as the Company
may establish in its sole discretion; and

	 	(c)	 	Such additional compensation, benefits and perquisites as the Company may deem
appropriate

	5.	 	Changes to Compensation. Notwithstanding anything contained herein to the contrary,
Employee acknowledges that the Company specifically reserves the right to make changes to
Employee’s compensation in its sole discretion including, but not limited to, modifying or
eliminating a compensation component. The Parties agree that such changes shall be deemed
effective immediately and a modification of this Agreement unless, within seven (7) days after
receiving notice of such change, Employee exercises his right to terminate this
Agreement without cause. The Parties anticipate that Employee’s compensation structure will be
reviewed on an annual basis but acknowledge that the Company shall have no obligation to do so.

 

2

 

	6.	 	Direct Deposit.  As a condition of employment, and within thirty (30) days of the
effective date of this Agreement, Employee agrees to make all necessary arrangements to have
all sums paid pursuant to this Agreement direct deposited into one or more bank accounts as
designated by Employee.

	7.	 	Warranties and Indemnification.  Employee warrants that he is not a party to any
contract, restrictive covenant, or other agreement purporting to limit or otherwise adversely
affecting his ability to secure employment with any third party. Alternatively, should any
such agreement exist, Employee warrants that the contemplated services to be performed
hereunder will not violate the terms and conditions of any such agreement. In either event,
Employee agrees to fully indemnify and hold the Company harmless from any and all claims
arising from, or involving the enforcement of, any such restrictive covenants or other
agreements.

	8.	 	Restricted Duties.  Employee agrees not to disclose, or use for the benefit of the
Company, any confidential or proprietary information belonging to any predecessor employer(s)
that otherwise has not been made public and further acknowledges that the Company has
specifically instructed him not to disclose or use such confidential or proprietary
information. Based on his understanding of the anticipated duties and responsibilities
hereunder, Employee acknowledges that such duties and responsibilities will not compel the
disclosure or use of any such confidential and proprietary information.

	9.	 	Termination Without Cause.  The Parties agree that either party may terminate this
employment relationship at any time, without cause, upon sixty (60) days’ advance written
notice or, if terminated by the Company, pay in lieu of notice (hereinafter referred to as
“notice pay”). In such event, Employee shall only be entitled to such compensation, benefits
and perquisites that have been paid or fully accrued as of the effective date of his
separation and as otherwise explicitly set forth in this Agreement. However, in no event
shall Employee be entitled to notice pay if Employee is eligible for and accepts severance
payments pursuant to the provisions of Paragraphs 15 and 16 below.

	10.	 	Termination With Cause.  Employee’s employment may be terminated by the Company at
any time “for cause” without notice or prior warning. For purposes of this Agreement, “cause”
shall mean the Company’s good faith determination that Employee has:

	 	(a)	 	Acted with gross neglect or willful misconduct in the discharge of his duties and
responsibilities or refused to follow or comply with the lawful direction of the Company or
the terms and conditions of this Agreement, provided such refusal is not based primarily on
Employee’s good faith compliance with applicable legal or ethical standards;

	 	(b)	 	Acquiesced or participated in any conduct that is dishonest, fraudulent, illegal (at
the felony level), unethical, involves moral turpitude or is otherwise illegal and involves
conduct that has the potential, in the Company’s reasonable opinion, to cause the Company,
it officers or its directors embarrassment or ridicule;

 

3

 

	 	(c)	 	Violated a material requirement of any Company policy or procedure, specifically
including a violation of the Company’s Code of Ethics or Associate Policy Manual;

	 	(d)	 	Disclosed without proper authorization any trade secrets or other Confidential
Information (as defined herein);

	 	(e)	 	Engaged in any act that, in the reasonable opinion of the Company, is contrary to its
best interests or would hold the Company, its officers or directors up to probable civil or
criminal liability, provided that, if Executive acts in good faith in compliance with
applicable legal or ethical standards, such actions shall not be grounds for termination
for cause; or

	 
	 	(f)	 	Engaged in such other conduct recognized at law as constituting cause.

Upon the occurrence or discovery of any event specified above, the Company shall have the right
to terminate Employee’s employment, effective immediately, by providing notice thereof to
Employee without further obligation to him, other than accrued wages or other accrued wages,
deferred compensation or other accrued benefits of employment (collectively referred to herein
as “Accrued Obligations”), which shall be paid in accordance with the Company’s past practice
and applicable law. To the extent any violation of this Paragraph is capable of being promptly
cured by Employee (or cured within a reasonable period to the Company’s satisfaction), the
Company agrees to provide Employee with a reasonable opportunity to so cure such defect. Absent
written mutual agreement otherwise, the Parties agree in advance that it is not possible for
Employee to cure any violations of sub-paragraph (b) or (d) and, therefore, no opportunity for
cure need be provided in those circumstances.

	11.	 	Termination Due to Death or Disability. In the event Employee dies or suffers a
disability (as defined herein) during the term of employment, this Agreement shall
automatically be terminated on the date of such death or disability without further obligation
on the part of the Company other than the payment of Accrued Obligations. For purposes of
this Agreement, Employee shall be considered to have suffered a “disability” upon a
determination that Employee cannot perform the essential functions of his position as a result
of a such a disability and the occurrence of one or more of the following events:

	 	(a)	 	Employee becomes eligible for or receives any benefits pursuant to any disability
insurance policy as a result of a determination under such policy that Employee is
permanently disabled;

	 	(b)	 	Employee becomes eligible for or receives any disability benefits under the Social
Security Act; or

	 	(c)	 	A good faith determination by the Company that Employee is and will likely remain
unable to perform the essential functions of his duties or responsibilities hereunder on a
full-time basis, with or without reasonable accommodation, as a result of any mental or
physical impairment.

 

4

 

Notwithstanding anything expressed or implied above to the contrary, the Company agrees to fully
comply with its obligations under the Family and Medical Leave Act of 1993 and the Americans
with Disabilities Act as well as any other applicable federal, state, or local law, regulation,
or ordinance governing the provision of leave to individuals with serious health conditions or
the protection of individuals with disabilities as well as the Company’s obligation to provide
reasonable accommodation thereunder.

	12.	 	Exit Interview. Upon termination of Employee’s employment for any reason, Employee
agrees, if requested, to participate in an exit interview with the Company and reaffirm in
writing his post-employment obligations as set forth in this Agreement 

	13.	 	Section 409A Notification. Employee acknowledges that he has been advised of the
American Jobs Creation Act of 2004, which added Section 409A to the Internal Revenue Code
(“Section 409A”), and significantly changed the taxation of nonqualified deferred compensation
plans and arrangements. Under proposed and final regulations as of the date of this
Agreement, Employee has been advised that his severance pay and other termination benefits may
be treated by the Internal Revenue Service as providing “nonqualified deferred compensation,”
and therefore subject to Section 409A. In that event, several provisions in Section 409A may
affect Employee’s receipt of severance compensation, including the timing thereof. These
include, but are not limited to, a provision which requires that distributions to “specified
employees” of public companies on account of separation from service may not be made earlier
than six (6) months after the effective date of such separation. If applicable, failure to
comply with Section 409A can lead to immediate taxation of such deferrals, with interest
calculated at a penalty rate and a 20% penalty. As a result of the requirements imposed by
the American Jobs Creation Act of 2004, Employee agrees if he is a “specified employee” at the
time of his termination of employment and if payments in connection with such termination of
employment are subject to Section 409A and not otherwise exempt, such payments (and other
benefits to the extent applicable) due Employee at the time of termination of employment shall
not be paid until a date at least six (6) months after the effective date of Employee’s
termination of employment (“Employee’s Effective Termination Date”). Notwithstanding any
provision of this Agreement to the contrary, to the extent that any payment under the terms of
this Agreement would constitute an impermissible acceleration of payments under Section 409A
or any regulations or Treasury guidance promulgated thereunder, such payments shall be made no
earlier than at such times allowed under Section 409A. If any provision of this Agreement (or
of any award of compensation) would cause Employee to incur any additional tax or interest
under Section 409A or any regulations or Treasury guidance promulgated thereunder, the Company
or its successor may reform such provision; provided that it will (i) maintain, to the maximum
extent practicable, the original intent of the applicable provision without violating the
provisions of Section 409A and (ii) notify and consult with Employee regarding such amendments
or modifications prior to the effective date of any such change.

 

5

 

	14.	 	Section 409A Acknowledgement. Employee acknowledges that, notwithstanding anything
contained herein to the contrary, both Parties shall be independently responsible for
assessing their own risks and liabilities under Section 409A that may be associated with any
payment made under the terms of this Agreement or any other arrangement which may be deemed to
trigger Section 409A. Further, the Parties agree that each shall independently bear
responsibility for any and all taxes, penalties or other tax obligations as may be imposed upon
them in their individual capacity as a matter of law. To the extent applicable, Employee
understands and agrees that he shall have the responsibility for, and he agrees to pay, any and
all appropriate income tax or other tax obligations for which he is individually responsible
and/or related to receipt of any benefits provided in this Agreement. Employee agrees to fully
indemnify and hold the Company harmless for any taxes, penalties, interest, cost or attorneys’
fee assessed against or incurred by the Company on account of such benefits having been provided
to him or based on any alleged failure to withhold taxes or satisfy any claimed obligation.
Employee understands and acknowledges that neither the Company, nor any of its employees,
attorneys, or other representatives has provided or will provide him with any legal or financial
advice concerning taxes or any other matter, and that he has not relied on any such advice in
deciding whether to enter into this Agreement. 

	15.	 	Severance Payments. In the event Employee’s employment is terminated by the Company
without cause, and subject to the normal terms and conditions imposed by the Company as set
forth herein and in the attached Separation and Release Agreement, Employee shall be eligible
to receive severance pay based upon his base salary at the time of termination for a period
determined in accordance with any guidelines as may be established by the Company or for a
period up to twelve (12) months (whichever is longer).

	16.	 	Severance Payment Terms and Conditions. No severance pay shall be paid if Employee
voluntarily leaves the Company’s employ or is terminated for cause. Any severance pay made
payable under this Agreement shall be paid in lieu of, and not in addition to, any other
contractual, notice or statutory pay or other accrued compensation obligation (excluding
accrued wages and deferred compensation). Additionally, such severance pay is contingent upon
Employee fully complying with the restrictive covenants contained herein and executing a
Separation and Release Agreement in a form not substantially different from that attached as
Exhibit A. Further, the Company’s obligation to provide severance hereunder shall be deemed
null and void should Employee fail or refuse to execute and deliver to the Company the
Company’s then-standard Separation and Release Agreement (without modification) within any
time period as may be prescribed by law or, in absence thereof, twenty-one (21) days after the
Employee’s Effective Termination Date. Conditioned upon the execution and delivery of the
Separation and Release Agreement as set forth in the prior sentence, Severance pay benefits
shall be paid as follows: (i) in one lump sum equivalent to six (6) months’ salary on the day
following the date which is six (6) months following Employee’s Effective Termination Date
with any remainder to be paid in bi-weekly installments equivalent to the Employee’s salary
commencing upon the next regularly scheduled payroll date, if both the severance pay benefit
is subject to Section 409A and if Employee is a “specified employee” under Section 409A or
(ii) for any severance pay benefits not subject to clause (i), begin upon the next regularly
scheduled payroll following the earlier of fifteen (15) days from the Company’s receipt of an
executed Separation and Release Agreement or the expiration of sixty (60) days after
Employee’s Effective Termination Date and shall be paid on the Company’s regularly scheduled
pay dates; provided, however, that if the before-stated sixty (60) day period ends in a
calendar year following the calendar year in which the sixty (60) day period commenced, then
any benefits not subject to clause (i) shall only begin on the next regularly scheduled
payroll following the expiration of sixty (60) days after the Employee’s Effective Termination
Date. Excluding
any lump sum payment due as a result of the application of Section 409A (which shall be paid
regardless of reemployment), all other severance payments provided hereunder shall terminate
upon reemployment.

 

6

 

	17.	 	Assignment of Rights.

	 	(a)	 	Copyrights.  Employee agrees that all works of authorship fixed in any tangible
medium of expression by him during the term of this Agreement relating to the Company’s
business (“Works”), either solely or jointly with others, shall be and remain exclusively
the property of the Company. Each such Work created by Employee is a “work made for hire”
under the copyright law and the Company may file applications to register copyright in such
Works as author and copyright owner thereof. If, for any reason, a Work created by
Employee is excluded from the definition of a “work made for hire” under the copyright law,
then Employee does hereby assign, sell, and convey to the Company the entire rights, title,
and interests in and to such Work, including the copyright therein, to the Company.
Employee will execute any documents that the Company deems necessary in connection with the
assignment of such Work and copyright therein. Employee will take whatever steps and do
whatever acts the Company requests, including, but not limited to, placement of the
Company’s proper copyright notice on Works created by Employee to secure or aid in securing
copyright protection in such Works and will assist the Company or its nominees in filing
applications to register claims of copyright in such Works. The Company shall have free
and unlimited access at all times to all Works and all copies thereof and shall have the
right to claim and take possession on demand of such Works and copies.

	 	(b)	 	Inventions.  Employee agrees that all discoveries, concepts, and ideas, whether
patentable or not, including, but not limited to, apparatus, processes, methods,
compositions of matter, techniques, and formulae, as well as improvements thereof or
know-how related thereto, relating to any present or prospective product, process, or
service of the Company (“Inventions”) that Employee conceives or makes during the term of
this Agreement relating to the Company’s business, shall become and remain the exclusive
property of the Company, whether patentable or not, and Employee will, without royalty or
any other consideration:

	 	(i)	 	Inform the Company promptly and fully of such Inventions by written reports,
setting forth in detail the procedures employed and the results achieved;

	 	(ii)	 	Assign to the Company all of his rights, title, and interests in and to such
Inventions, any applications for United States and foreign Letters Patent, any United
States and foreign Letters Patent, and any renewals thereof granted upon such
Inventions;

	 	(iii)	 	Assist the Company or its nominees, at the expense of the Company, to obtain
such United States and foreign Letters Patent for such Inventions as the Company may
elect; and

 

7

 

	 	(iv)	 	Execute, acknowledge, and deliver to the Company at the Company’s expense such
written documents and instruments, and do such other acts, such as giving testimony
in support of his inventorship, as may be necessary in the opinion of the Company, to
obtain and maintain United States and foreign Letters Patent upon such Inventions and to
vest the entire rights and title thereto in the Company and to confirm the complete
ownership by the Company of such Inventions, patent applications, and patents.

	18.	 	Company Property.  All records, files, drawings, documents, data in whatever form,
business equipment (including computers, PDAs, cell phones, etc.), and the like relating to,
or provided by, the Company shall be and remain the sole property of the Company. Upon
termination of employment, Employee shall immediately return to the Company all such items
without retention of any copies and without additional request by the Company. De minimis
items such as pay stubs, 401(k) plan summaries, employee bulletins, and the like are excluded
from this requirement.

	19.	 	Confidential Information.  Employee acknowledges that the Company and its affiliated
entities (herein collectively referred to as “Companies”) possess certain trade secrets as
well as other confidential and proprietary information which they have acquired or will
acquire at great effort and expense. Such information may include, without limitation,
confidential information, whether in tangible or intangible form, regarding the Companies’
products and services, marketing strategies, business plans, operations, costs, current or
prospective customer information (including customer identities, contacts, requirements,
creditworthiness, preferences, and like matters), product concepts, designs, prototypes or
specifications, research and development efforts, technical data and know-how, sales
information, including pricing and other terms and conditions of sale, financial information,
internal procedures, techniques, forecasts, methods, trade information, trade secrets,
software programs, project requirements, inventions, trademarks, trade names, and similar
information regarding the Companies’ business(es) (collectively referred to herein as
“Confidential Information”). Employee further acknowledges that, as a result of his
employment with the Company, Employee will have access to, will become acquainted with, and/or
may help develop, such Confidential Information. Confidential Information shall not include
information readily available in the public so long as such information was not made available
through fault of Employee or wrong doing by any other individual.

	20.	 	Restricted Use of Confidential Information.  Employee agrees that all Confidential
Information is and shall remain the sole and exclusive property of the Company and/or its
affiliated entities. Except as may be expressly authorized by the Company in writing,
Employee agrees not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party while employed by the Company and for as long
thereafter as such information remains confidential (or as limited by applicable law).
Further, Employee agrees to use such Confidential Information only in the course of Employee’s
duties in furtherance of the Company’s business and agrees not to make use of any such
Confidential Information for Employee’s own purposes or for the benefit of any other entity or
person.

 

8

 

	21.	 	Acknowledged Need for Limited Restrictive Covenants.  Employee acknowledges that the
Companies have spent and will continue to expend substantial amounts of time, money and effort
to develop their business strategies, Confidential Information, customer identities and
relationships, goodwill and employee relationships, and that Employee will benefit from these
efforts. Further, Employee acknowledges the inevitable use of, or near-certain influence by his
knowledge of, the Confidential Information disclosed to Employee during the course of employment
if allowed to compete against the Company in an unrestricted manner and that such use would be
unfair and extremely detrimental to the Company. Accordingly, based on these legitimate
business reasons, Employee acknowledges each of the Companies’ need to protect their legitimate
business interests by reasonably restricting Employee’s ability to compete with the Company on a
limited basis.

	22.	 	Non-Solicitation.  During Employee’s employment and for a period of eighteen (18)
months thereafter, Employee agrees not to directly or indirectly engage in the following
prohibited conduct:

	 	(a)	 	Solicit, offer products or services to, or accept orders for, any Competitive Products
or otherwise transact any competitive business with, any customer or entity with whom
Employee had contact or transacted any business on behalf of the Company (or any Affiliate
thereof) during the eighteen (18) month period preceding Employee’s date of separation or
about whom Employee possessed, or had access to, confidential and proprietary information;

	 	(b)	 	Attempt to entice or otherwise cause any third party to withdraw, curtail or cease
doing business with the Company (or any Affiliate thereof), specifically including
customers, vendors, independent contractors and other third party entities;

	 	(c)	 	Disclose to any person or entity the identities, contacts or preferences of any
customers of the Company (or any Affiliate thereof), or the identity of any other persons
or entities having business dealings with the Company (or any Affiliate thereof);

	 	(d)	 	Induce any individual who has been employed by or had provided services to the Company
(or any Affiliate thereof) within the six (6) month period immediately preceding the
effective date of Employee’s separation to terminate such relationship with the Company (or
any Affiliate thereof);

	 	(e)	 	Assist, coordinate or otherwise offer employment to, accept employment inquiries from,
or employ any individual who is or had been employed by the Company (or any Affiliate
thereof) at any time within the six (6) month period immediately preceding such offer, or
inquiry;

	 	(f)	 	Communicate or indicate in any way to any customer of the Company (or any Affiliate
thereof), prior to formal separation from the Company, any interest, desire, plan, or
decision to separate from the Company; or

	 	(g)	 	Otherwise attempt to directly or indirectly interfere with the Company’s business, the
business of any of the Companies or their relationship with their employees, consultants,
independent contractors or customers.

 

9

 

	23.	 	Limited Non-Compete.  For the above-stated reasons, and as a condition of employment
to the fullest extent permitted by law, Employee agrees during the Relevant Non-Compete Period
not to directly or indirectly engage in the following competitive activities:

	 	(a)	 	Employee shall not have any ownership interest in, work for, advise, consult, or have
any business connection or business or employment relationship in any competitive capacity
with any Competitor unless Employee provides written notice to the Company of such
relationship prior to entering into such relationship and, further, provides sufficient
written assurances to the Company’s satisfaction that such relationship will not,
jeopardize the Company’s legitimate interests or otherwise violate the terms of this
Agreement;

	 	(b)	 	Employee shall not engage in any research, development, production, sale or
distribution of any Competitive Products, specifically including any products or services
relating to those for which Employee had responsibility for the eighteen (18) month period
preceding Employee’s date of separation;

	 	(c)	 	Employee shall not market, sell, or otherwise offer or provide any Competitive Products
within his Geographic Territory (if applicable) or Assigned Customer Base, specifically
including any products or services relating to those for which Employee had responsibility
for the eighteen (18) month period preceding Employee’s date of separation; and

	 	(d)	 	Employee shall not distribute, market, sell or otherwise offer or provide any
Competitive Products to any customer of the Company with whom Employee had contact or for
which Employee had responsibility at any time during the eighteen (18) month period
preceding Employee’s date of separation

	24.	 	Non-Compete Definitions.  For purposes of this Agreement, the Parties agree that the
following terms shall apply:

	 	(a)	 	“Affiliate” includes any parent, subsidiary, joint venture, sister company, or other
entity controlled, owned, managed or otherwise associated with the Company;

	 	(b)	 	“Assigned Customer Base” shall include all accounts or customers formally assigned to
Employee within a given territory or geographical area or contacted by him at any time
during the eighteen (18) month period preceding Employee’s date of separation;

	 	(c)	 	“Competitive Products” shall include any product or service that directly or indirectly
competes with, is substantially similar to, or serves as a reasonable substitute for, any
product or service in research, development or design, or manufactured, produced, sold or
distributed by the Company;

	 	(d)	 	“Competitor” shall include any person or entity that offers or is actively planning to
offer any Competitive Products and may include (but not be limited to) any entity
identified on the Company’s Illustrative Competitor List, attached hereto as Exhibit B,
which shall be amended from time to time to reflect changes in the Company’s business and
competitive
environment (updated competitor lists will be provided to Employee upon reasonable request);

 

10

 

	 	(e)	 	“Geographic Territory” shall include any territory formally assigned to Employee as
well as all territories in which Employee has provided any services, sold any products or
otherwise had responsibility at any time during the eighteen (18) month period preceding
Employee’s date of separation;

	 	(f)	 	“Relevant Non-Compete Period” shall include the period of Employee’s employment with
the Company as well as a period of eighteen (18) months after such employment is
terminated, regardless of the reason for such termination provided, however, that this
period shall be reduced to the greater of (i) nine (9) months or (ii) the total length of
Employee’s employment with the Company, including employment with any parent, subsidiary or
affiliated entity, if such employment is less than eighteen (18) months;

	 	(g)	 	“Directly or indirectly” shall be construed such that the foregoing restrictions shall
apply equally to Employee whether performed individually or as a partner, shareholder,
officer, director, manager, employee, salesman, independent contractor, broker, agent, or
consultant for any other individual, partnership, firm, corporation, company, or other
entity engaged in such conduct

	25.	 	Consent to Reasonableness.  In light of the above-referenced concerns, including
Employee’s knowledge of and access to the Companies’ Confidential Information, Employee
acknowledges that the terms of the foregoing restrictive covenants are reasonable and
necessary to protect the Company’s legitimate business interests and will not unreasonably
interfere with Employee’s ability to obtain alternate employment. As such, Employee hereby
agrees that such restrictions are valid and enforceable, and affirmatively waives any argument
or defense to the contrary. Employee acknowledges that this limited non-competition provision
is not an attempt to prevent Employee from obtaining other employment
in violation of IC

§22-5-3-1 or any other similar statute. Employee further acknowledges that the Company may
need to take action, including litigation, to enforce this limited non-competition provision,
which efforts the Parties stipulate shall not be deemed an attempt to prevent Employee from
obtaining other employment.

	26.	 	Survival of Restrictive Covenants.  Employee acknowledges that the above restrictive
covenants shall survive the termination of this Agreement and the termination of Employee’s
employment for any reason. Employee further acknowledges that any alleged breach by the
Company of any contractual, statutory or other obligation shall not excuse or terminate the
obligations hereunder or otherwise preclude the Company from seeking injunctive or other
relief. Rather, Employee acknowledges that such obligations are independent and separate
covenants undertaken by Employee for the benefit of the Company.

 

11

 

	27.	 	Effect of Transfer.   Employee agrees that this Agreement shall continue in full
force and effect notwithstanding any change in job duties, job titles or reporting
responsibilities. Employee further acknowledges that the above restrictive covenants shall
survive, and be extended to cover, the transfer of Employee from the Company to its parent,
subsidiary, sister corporation or any other affiliated entity (hereinafter collectively
referred to as an
“Affiliate”) or any subsequent transfer(s) among them. Specifically, in the event of Employee’s
temporary or permanent transfer to an Affiliate, he agrees that the foregoing restrictive
covenants shall remain in force so as to continue to protect such company for the duration of
the non-compete period, measured from his effective date of transfer to an Affiliate.
Additionally, Employee acknowledges that this Agreement shall be deemed to have been
automatically assigned to the Affiliate as of his effective date of transfer such that the
above-referenced restrictive covenants (as well as all other terms and conditions contained
herein) shall be construed thereafter to protect the legitimate business interests and goodwill
of the Affiliate as if Employee and the Affiliate had independently entered into this Agreement.
Employee’s acceptance of his transfer to, and subsequent employment by, the Affiliate shall
serve as consideration for (as well as be deemed as evidence of his consent to) the assignment
of this Agreement to the Affiliate as well as the extension of such restrictive covenants to the
Affiliate. Employee agrees that this provision shall apply with equal force to any subsequent
transfers of Employee from one Affiliate to another Affiliate.

	28.	 	Post-Termination Notification.  For the duration of his Relevant Non-compete Period
or other restrictive covenant period, which ever is longer, Employee agrees to promptly notify
the Company no later than five (5) business days of his acceptance of any employment or
consulting engagement. Such notice shall include sufficient information to ensure Employee
compliance with his non-compete obligations and must include at a minimum the following
information:  (i) the name of the employer or entity for which he is providing any consulting
services; (ii) a description of his intended duties as well as (iii) the anticipated start
date. Such information is required to ensure Employee’s compliance with his non-compete
obligations as well as all other applicable restrictive covenants. Such notice shall be
provided in writing to the Office of Vice President and General Counsel of the Company at 1069
State Road 46 E. Batesville, Indiana 47006. Failure to timely provide such notice shall be
deemed a material breach of this Agreement and entitle the Company to return of any severance
paid to Employee plus attorneys’ fees. Employee further consents to the Company’s
notification to any new employer of Employee’s rights and obligations under this Agreement.

	29.	 	Scope of Restrictions.  If the scope of any restriction contained in any preceding
paragraphs of this Agreement is deemed too broad to permit enforcement of such restriction to
its fullest extent, then such restriction shall be enforced to the maximum extent permitted by
law, and Employee hereby consents and agrees that such scope may be judicially modified
accordingly in any proceeding brought to enforce such restriction.

	30.	 	Specific Enforcement/Injunctive Relief.  Employee agrees that it would be difficult
to measure any damages to the Company from a breach of the above-referenced restrictive
covenants, but acknowledges that the potential for such damages would be great, incalculable
and irremediable, and that monetary damages alone would be an inadequate remedy. Accordingly,
Employee agrees that the Company shall be entitled to immediate injunctive relief against such
breach, or threatened breach, in any court having jurisdiction. In addition, if Employee
violates any such restrictive covenant, Employee agrees that the period of such violation
shall be added to the term of the restriction. In determining the period of any violation,
the Parties stipulate that in any calendar month in which Employee engages in any activity in
violation of such provisions, Employee shall be deemed to have violated such
provision for the entire month, and that month shall be added to the duration of the
non-competition provision. Employee acknowledges that the remedies described above shall not be
the exclusive remedies, and the Company may seek any other remedy available to it either in law
or in equity, including, by way of example only, statutory remedies for misappropriation of
trade secrets, and including the recovery of compensatory or punitive damages. Employee further
agrees that the Company shall be entitled to an award of all costs and attorneys’ fees incurred
by it in any attempt to enforce the terms of this Agreement.

 

12

 

	31.	 	Publicly Traded Stock.  The Parties agree that nothing contained in this Agreement
shall be construed to prohibit Employee from investing his personal assets in any stock or
corporate security traded or quoted on a national securities exchange or national market
system provided, however, such investments do not require any services on the part of Employee
in the operation or the affairs of the business or otherwise violate the Company’s Code of
Ethics.

	32.	 	Notice of Claim and Contractual Limitations Period.  Employee acknowledges the
Company’s need for prompt notice, investigation, and resolution of any claims that may be
filed against it due to the number of relationships it has with employees and others (and due
to the turnover among such individuals with knowledge relevant to any underlying claim).
Accordingly, Employee agrees prior to initiating any litigation of any type (including, but
not limited to, employment discrimination litigation, wage litigation, defamation, or any
other claim) to notify the Company, within One Hundred and Eighty (180) days after the claim
accrued, by sending a certified letter addressed to the Company’s General Counsel setting
forth:  (i) claimant’s name, address, and phone; (ii) the name of any attorney (if any)
representing Employee; (iii) the nature of the claim; (iv) the date the claim arose; and (v)
the relief requested. This provision is in addition to any other notice and exhaustion
requirements that might apply. For any dispute or claim of any type against the Company
(including but not limited to employment discrimination litigation, wage litigation,
defamation, or any other claim), Employee must commence legal action within the shorter of one
(1) year of accrual of the cause of action or such shorter period that may be specified by
law.

	33.	 	Non-Jury Trials.  Notwithstanding any right to a jury trial for any claims, Employee
waives any such right to a jury trial, and agrees that any claim of any type (including but
not limited to employment discrimination litigation, wage litigation, defamation, or any other
claim) lodged in any court will be tried, if at all, without a jury.

	34.	 	Choice of Forum.  Employee acknowledges that the Company is primarily based in
Indiana, and Employee understands and acknowledges the Company’s desire and need to defend any
litigation against it in Indiana. Accordingly, the Parties agree that any claim of any type
brought by Employee against the Company or any of its employees or agents must be maintained
only in a court sitting in Marion County, Indiana, or Ripley County, Indiana, or, if a federal
court, the Southern District of Indiana, Indianapolis Division. Employee further understands
and acknowledges that in the event the Company initiates litigation against Employee, the
Company may need to prosecute such litigation in such state where the Employee is subject to
personal jurisdiction. Accordingly, for purposes of enforcement of this Agreement, Employee
specifically consents to personal jurisdiction in the State of
Indiana as well as any state in which resides a customer assigned to the Employee. Furthermore,
Employee consents to appear, upon Company’s request and at Employee’s own cost, for deposition,
hearing, trial, or other court proceeding in Indiana or in any state in which resides a customer
assigned to the Employee.

 

13

 

	35.	 	Choice of Law.  This Agreement shall be deemed to have been made within the County of
Ripley, State of Indiana and shall be interpreted and construed in accordance with the laws of
the State of Indiana. Any and all matters of dispute of any nature whatsoever arising out of,
or in any way connected with the interpretation of this Agreement, any disputes arising out of
the Agreement or the employment relationship between the Parties hereto, shall be governed by,
construed by and enforced in accordance with the laws of the State of Indiana without regard
to any applicable state’s choice of law provisions.

	36.	 	Titles.  Titles are used for the purpose of convenience in this Agreement and shall
be ignored in any construction of it.

	37.	 	Severability.  The Parties agree that each and every paragraph, sentence, clause,
term and provision of this Agreement is severable and that, in the event any portion of this
Agreement is adjudged to be invalid or unenforceable, the remaining portions thereof shall
remain in effect and be enforced to the fullest extent permitted by law. Further, should any
particular clause, covenant, or provision of this Agreement be held unreasonable or contrary
to public policy for any reason, the Parties acknowledge and agree that such covenant,
provision or clause shall automatically be deemed modified such that the contested covenant,
provision or clause will have the closest effect permitted by applicable law to the original
form and shall be given effect and enforced as so modified to whatever extent would be
reasonable and enforceable under applicable law.

	38.	 	Assignment-Notices.  The rights and obligations of the Company under this Agreement
shall inure to its benefit, as well as the benefit of its parent, subsidiary, successor and
affiliated entities, and shall be binding upon the successors and assigns of the Company.
This Agreement, being personal to Employee, cannot be assigned by Employee, but his personal
representative shall be bound by all its terms and conditions. Any notice required hereunder
shall be sufficient if in writing and mailed to the last known residence of Employee or to the
Company at its principal office with a copy mailed to the Office of the General Counsel.

	39.	 	Amendments and Modifications.  Except as specifically provided herein, no
modification, amendment, extension or waiver of this Agreement or any provision hereof shall
be binding upon the Company or Employee unless in writing and signed by both Parties. The
waiver by the Company or Employee of a breach of any provision of this Agreement shall not be
construed as a waiver of any subsequent breach. Nothing in this Agreement shall be construed
as a limitation upon the Company’s right to modify or amend any of its manuals or policies in
its sole discretion and any such modification or amendment which pertains to matters addressed
herein shall be deemed to be incorporated herein and made a part of this Agreement.

 

14

 

	40.	 	Outside Representations.  Employee represents and acknowledges that in signing this
Agreement he does not rely, and has not relied, upon any representation or statement made
by the Company or by any of the Company’s employees, officers, agents, stockholders, directors
or attorneys with regard to the subject matter, basis or effect of this Agreement other than
those specifically contained herein.

	41.	 	Voluntary and Knowing Execution.  Employee acknowledges that he has been offered a
reasonable amount of time within which to consider and review this Agreement; that he has
carefully read and fully understands all of the provisions of this Agreement; and that he has
entered into this Agreement knowingly and voluntarily.

	42.	 	Entire Agreement.  This Agreement constitutes the entire employment agreement between
the Parties hereto concerning the subject matter hereof and shall supersede all prior and
contemporaneous agreements between the Parties in connection with the subject matter of this
Agreement. Any pre-existing Employment Agreements shall be deemed null and void. Nothing in
this Agreement, however, shall affect any separately-executed written agreement addressing any
other issues (e. g., the Inventions, Improvements, Copyrights and Trade Secrets Agreement,
etc.).

IN WITNESS WHEREOF, the Parties have signed this Agreement effective as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	“EMPLOYEE”	 	 	 	HILL-ROM COMPANY, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	/s/ Richard Keller 	 	 	 	By:	 	/s/ John H. Dickey 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Printed:

	 	Richard Keller 	 	 	 	Title:	 	Senior Vice President Human
Resources 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Dated:

	 	March 31, 2008	 	 	 	Dated:	 	April 1, 2008	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

CAUTION: READ BEFORE SIGNING

 

15

 

Exhibit A

SAMPLE SEPARATION AND RELEASE AGREEMENT

THIS SEPARATION and RELEASE AGREEMENT (“Agreement”) is entered into by and between Richard G.
Keller (“Employee”) and Hill-Rom Company, Inc. (together with its subsidiaries and affiliates, the
“Company”). To wit, the Parties agree as follows:

	1.	 	Employee’s active employment by the Company shall terminate effective [date of termination]
(Employee’s “Effective Termination Date”). Except as specifically provided by this Agreement,
Employee’s Employment Agreement, any Change in Control Agreement and any Indemnity Agreement
that may exist between the Company and Employee, Employee agrees that the Company shall have
no other obligations or liabilities to him following his Effective Termination Date and that
his receipt of the Severance Benefits provided herein shall constitute a complete settlement,
satisfaction and waiver of any and all claims he may have against the Company.

	2.	 	Employee further submits, and the Company hereby accepts, his resignation as an employee,
officer and director, as applicable, as of his Effective Termination Date for any position he
may hold. The Parties agree that this resignation shall apply to all such positions Employee
may hold with the Company or any parent, subsidiary or affiliated entity thereof. Employee
agrees to execute any documents needed to effectuate such resignation. Employee further
agrees to take whatever steps are necessary to facilitate and ensure the smooth transition of
his duties and responsibilities to others

	3.	 	Employee acknowledges that he has been advised of the American Jobs Creation Act of 2004,
which added Section 409A (“Section 409A”) to the Internal Revenue Code, and significantly
changed the taxation of nonqualified deferred compensation plans and arrangements. Under
proposed and final regulations as of the date of this Agreement, Employee has been advised
that his severance pay may be treated by the Internal Revenue Service as providing
“nonqualified deferred compensation,” and therefore subject to Section 409A. In that event,
several provisions in Section 409A may affect Employee’s receipt of severance compensation.
These include, but are not limited to, a provision which requires that distributions to
“specified employees” of public companies on account of separation from service may not be
made earlier than six (6) months after the effective date of such separation. If applicable,
failure to comply with Section 409A can lead to immediate taxation of deferrals, with interest
calculated at a penalty rate and a 20% penalty. As a result of the requirements imposed by
the American Jobs Creation Act of 2004, Employee agrees if he is a “specified employee” at the
time of his termination of employment and if severance payments are covered as “non-qualified
deferred compensation” or otherwise not exempt, the severance pay benefits shall not be paid
until a date at least six (6) months after Employee’s Effective Termination Date from Company,
as more fully explained by Paragraph 4, below.

 

 

 

	4.	 	In consideration of the promises contained in this Agreement and contingent upon Employee’s
compliance with such promises, the Company agrees to provide Employee the following:

	 	(a)	 	Severance pay, in lieu of, and not in addition to any other contractual, notice or
statutory pay obligations (other than accrued wages and deferred compensation) in the
maximum total amount of [Insert Amount] Dollars and [________] Cents ($_____), less
applicable deductions or other set offs, payable as follows:

[For 409A Severance Pay for Specified Employees Only]

	 	(i)	 	A lump payment in the gross amount of [insert amount equal to 6 months’ pay]
Dollars and _____ Cents ($_____) payable the day following the sixth (6tth)
month anniversary of Employee’s Effective Termination Date with any remaining amount to
be paid in bi-weekly installments equivalent to Employee’s base salary (i.e.
_____

Dollars and
_____
Cents ($_____), less applicable deductions or other setoffs
commencing upon the next regularly scheduled payroll date after the payment of the lump
sum for a period of up to _____
weeks or until the Employee becomes reemployed,
whichever comes first.

[For Non-409A Severance Pay or 409A Severance Pay for Non-Specified Employees Only]

	 	(i)	 	Commencing on the next regularly scheduled payroll immediately following the
earlier to occur of fifteen (15) days from the Company’s receipt of an executed
Separation and Release Agreement or the expiration of sixty (60) days after Employee’s
Effective Termination Date, Employee shall be paid severance equivalent to his
bi-weekly base salary (i.e. 
 _____ 
Dollars and 
 _____ 
Cents ($_____),
less applicable deductions or other set-offs), for a period up to [insert weeks] (_____)
weeks following Employee’s Effective Termination Date or until Employee becomes
reemployed, whichever occurs first; provided, however, that if the before-stated sixty
(60) day period ends in a calendar year following the calendar year in which the sixty
(60) day period commenced, then this severance pay shall only begin on the next
regularly scheduled payroll following the expiration of sixty days after the Employee’s
Effective Termination Date.

	 	(b)	 	Payment for any earned but unused vacation as of Employee’s Effective Termination Date,
less applicable deductions permitted or required by law, payable in one lump sum within
fifteen (15) days after the Employee’s Effective Termination Date; and

	 
	 	(c)	 	Group Life Insurance coverage until the above-referenced Severance Pay terminates.

	5.	 	Except as may be required by Section 409A, the above Severance Pay shall be paid in
accordance with the Company’s standard payroll practices (e.g. bi-weekly). The Parties agree
that the initial two (2) weeks of the foregoing Severance Pay shall be allocated as
consideration provided to Employee in exchange for his execution of a release in compliance
with the Older Workers Benefit Protection Act. The balance of the severance benefits and
other obligations undertaken by the Company pursuant to this Agreement shall be allocated as
consideration for all other promises and obligations undertaken by Employee, including
execution of a general release of claims.

 

2

 

	6.	 	The Company further agrees to provide Employee with limited out-placement counseling with a
company of its choice provided that Employee participates in such counseling immediately
following termination of employment. Notwithstanding anything in this Section 6 to the
contrary, the out-placement counseling shall not be provided after the last day of the second
calendar year following the calendar year in which termination of employment occurs.

	7.	 	As of his Effective Termination Date, Employee will become ineligible to participate in the
Company’s health insurance program and continuation of coverage requirements under COBRA (if
any) will be triggered at that time. However, as additional consideration for the promises
and obligations contained herein (and except as may be prohibited by law), the Company agrees
to continue to pay the employer’s share of such coverage as provided under the health care
program selected by Employee as of his Effective Termination Date, subject to any approved
changes in coverage based on a qualified election, until the above-referenced Severance Pay
terminates, Employee accepts other employment or Employee becomes eligible for alternative
healthcare coverage, which ever comes first, provided Employee (i) timely completes the
applicable election of coverage forms and (ii) continues to pay the employee portion of the
applicable premium(s). Thereafter, if applicable, coverage will be made available to Employee
at his sole expense (i.e., Employee will be responsible for the full COBRA premium)
for the remaining months of the COBRA coverage period made available pursuant to applicable
law. In the event Employee is deemed to be a highly compensated employee under applicable
law, Employee acknowledges that the value of the benefits provided hereunder may be subject to
taxation. The medical insurance provided herein does not include any disability coverage.

	8.	 	Should Employee become employed before the above-referenced Severance Benefits are exhausted
or terminated, Employee agrees to so notify the Company in writing within five (5) business
days of Employee’s acceptance of such employment, providing the name of such employer (or
entity to whom Employee may be providing consulting services), his intended duties as well as
the anticipated start date. Such information is required to ensure Employee’s compliance with
his non-compete obligations as well as all other applicable restrictive covenants. This
notice will also serve to trigger the Company’s right to terminate the above-referenced
severance pay benefits (specifically excluding any lump sum payment due as a result of the
application of Section 409A) as well as all Company-paid or Company–provided benefits
consistent with the above paragraphs. Failure to timely provide such notice shall be deemed a
material breach of this Agreement entitling the Company to recover as damages the value of all
benefits provided to Employee hereunder plus attorneys fees.

	9.	 	Employee agrees to fully indemnify and hold the Company harmless for any taxes, penalties,
interest, cost or attorneys’ fee assessed against or incurred by the Company on account of
such benefits having been provided to him or based on any alleged failure to withhold taxes or
satisfy any claimed obligation. Employee understands and acknowledges that neither the
Company, nor any of its employees, attorneys, or other representatives has provided him with
any legal or financial advice concerning taxes or any other matter, and that he has not relied
on any such advice in deciding whether to enter into this Agreement. To the extent
applicable, Employee understands and agrees that he shall have the responsibility for, and he
agrees to pay, any and all appropriate income tax or other tax obligations for which he is
individually responsible and/or related to receipt of any benefits provided in this Agreement
not subject to federal withholding obligations.

 

3

 

	10.	 	In exchange for the foregoing Severance Benefits, Richard G. Keller on behalf of himself, his
heirs, representatives, agents and assigns hereby RELEASES, INDEMNIFIES, HOLDS HARMLESS, and
FOREVER DISCHARGES (i) Hill-Rom Company, Inc., employees, shareholders, and agents, as well
as, (iv) all predecessors, successors and assigns thereof from any and all actions, charges,
claims, demands, damages or liabilities of any kind or character whatsoever, known or unknown,
which Employee now has or may have had through the effective date of this Agreement.

	11.	 	Without limiting the generality of the foregoing release, it shall include:  (i) all claims
or potential claims arising under any federal, state or local laws relating to the Parties’
employment relationship, including any claims Employee may have under the Civil Rights Acts of
1866, 1964 and 1991, as amended, 42 U.S.C. §§ 1981 and 2000(e) et seq.; the
Age Discrimination in Employment Act, as amended, 29 U.S.C. §§ 621 et seq.;
the Americans with Disabilities Act of 1990, as amended, 42 U.S.C §§ 12,101 et
seq.; the Fair Labor Standards Act 29 U.S.C. §§ 201 et seq.; the
Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101, et seq.;
the Employee Retirement Income Security Act, 29 U.S.C. §§ 1101 et seq.; the
Sarbanes-Oxley Act of 2002, specifically including the Corporate and Criminal Fraud
Accountability Act, 18 USC §1514A et seq.; and any other federal, state or
local law governing the Parties’ employment relationship; (ii) any claims on account of,
arising out of or in any way connected with Employee’s employment with the Company or leaving
of that employment; (iii) any claims alleged or which could have been alleged in any charge or
complaint against the Company; (iv) any claims relating to the conduct of any employee,
officer, director, agent or other representative of the Company; (v) any claims of
discrimination, harassment or retaliation on any basis; (vi) any claims arising from any legal
restrictions on an employer’s right to separate its employees; (vii) any claims for personal
injury, compensatory or punitive damages or other forms of relief; and (viii) all other causes
of action sounding in contract, tort or other common law basis, including (a) the breach of
any alleged oral or written contract, (b) negligent or intentional misrepresentations, (c)
wrongful discharge, (d) just cause dismissal, (e) defamation, (f) interference with contract
or business relationship or (g) negligent or intentional infliction of emotional distress.

	12.	 	Employee further agrees and covenants not to sue the Company or any entity or individual
subject to the foregoing General Release with respect to any claims, demands, liabilities or
obligations release by this Agreement provided, however, that nothing contained in this
Agreement shall:

	 	(a)	 	prevent Employee from filing an administrative charge with the Equal Employment
Opportunity Commission or any other federal, state or local agency; or

	 	(b)	 	prevent employee from challenging, under the Older Worker’s Benefit Protection Act (29
U.S.C. § 626), the knowing and voluntary nature of his release of any age claims in this
Agreement in court or before the Equal Employment Opportunity Commission. [INCLUDE THIS
SUBPARAGRAPH (b) IF EMPLOYEE IS AGE 40 OR OLDER]

 

4

 

	13.	 	Notwithstanding his right to file an administrative charge with the EEOC or any other
federal, state or local agency, Employee agrees that with his release of claims in this
Agreement, he has waived any right he may have to recover monetary or other personal relief in
any proceeding based in whole or in part on claims released by him in this Agreement. For
example, Employee waives any right to monetary damages or reinstatement if an administrative
charge is brought against the Company, whether by Employee, the EEOC or any other person or
entity, including, but not limited to any federal, state or local agency. Further, with his
release of claims in this Agreement, Employee specifically assigns to the Company his right to
any recovery arising from any such proceeding.

	14.	 	[ADD THIS LANGUAGE IF THE EMPLOYEE IS AGE 40 OR OLDER] The Parties acknowledge that it is
their mutual and specific intent that the above waiver fully complies with the requirements of
the Older Workers Benefit Protection Act (29 U.S.C. § 626) and any similar law governing
release of claims. Accordingly, Employee hereby acknowledges that:

	 	(a)	 	he has carefully read and fully understands all of the provisions of this Agreement and
that he has entered into this Agreement knowingly and voluntarily;

	 	(b)	 	the Severance Benefits offered in exchange for Employee’s release of claims exceed in
kind and scope that to which he would have otherwise been legally entitled absent the
execution of this Agreement;

	 	(c)	 	prior to signing this Agreement, Employee had been advised, and is being advised by
this Agreement, to consult with an attorney of his choice concerning its terms and
conditions; and

	 	(d)	 	he has been offered at least [twenty-one (21)/forty-five (45)] days within which to
review and consider this Agreement.

	15.	 	[ADD THIS LANGUAGE IF THE EMPLOYEE IS AGE 40 OR OLDER] The Parties agree that this Agreement
shall not become effective and enforceable until the date this Agreement is signed by both
Parties or seven (7) calendar days after its execution by Employee, whichever is later.
Employee may revoke this Agreement for any reason by providing written notice of such intent
to the Company within seven (7) days after he has signed this Agreement, thereby forfeiting
Employee’s right to receive any Severance Benefits provided hereunder and rendering this
Agreement null and void in its entirety. This revocation must be sent to the Employee’s HR
representative with a copy sent to the Hill-Rom Office of General Counsel and must be received
by the end of the seventh day after the Employee signs this Agreement to be effective.

 

5

 

	16.	 	[ADD THIS LANGUAGE IF THE EMPLOYEE IS IN CALIFORNIA] Employee specifically acknowledges
that, as a condition of this Agreement, he expressly releases all rights and claims that he
knows about as well as those he may not know about. Employee expressly waives all rights
under Section 1542 of the Civil Code of the State of California, which reads as follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release which if known,
must have materially affected his settlement with the debtor.”

Notwithstanding the provision by Section 1542, and for the purpose of implementing a full and
complete release and discharge of the Company as set forth above, Employee expressly
acknowledges that this Agreement is intended to include and does in its effect, without
limitation, include all claims which Employee does not know or suspect to exist in his favor at
the time of signing this Agreement and that this Agreement expressly contemplates the
extinguishment of all such claims.

	17.	 	The Parties agree that nothing contained herein shall purport to waive or otherwise affect
any of Employee’s rights or claims that may arise after he signs this Agreement. It is
further understood by the Parties that nothing in this Agreement shall affect any rights
Employee may have under any Company sponsored Deferred Compensation Program, Executive Life
Insurance Bonus Plan, Stock Grant Award, Stock Option Grant, Restricted Stock Unit Award,
Pension Plan and/or Savings Plan (i.e., 401(k) plan) provided by the Company as of the
date of his termination, such items to be governed exclusively by the terms of the applicable
agreements or plan documents.

	18.	 	Similarly, notwithstanding any provision contained herein to the contrary, this Agreement
shall not constitute a waiver or release or otherwise affect Employee’s rights with respect to
any vested benefits, any rights he has to benefits which can not be waived by law, any
coverage provided under any Directors and Officers (“D&O”) policy, any rights Employee may
have under any indemnification agreement he has with the Company prior to the date hereof, any
rights he has as a shareholder, or any claim for breach of this Agreement, including, but not
limited to the benefits promised by the terms of this Agreement.

	19.	 	[Optional Provision for Equity Eligible Employees: Except as provided herein, Employee
acknowledges that he will not be eligible to receive or vest in any additional stock options,
stock awards or restricted stock units (“RSUs”) as of his Effective Termination Date. Failure
to exercise any vested options within the applicable period as set for in the plan and/or
grant will result in their forfeiture. Employee acknowledges that any stock options, stock
awards or RSUs held for less than the required period shall be deemed forfeited as of the
effective date of this Agreement. All terms and conditions of such stock options, stock
awards or RSUs shall not be affected by this Agreement, shall remain in full force and effect,
and shall govern the Parties’ rights with respect to such equity based awards.]

	20.	 	[Option A] Employee acknowledges that his termination and the Severance Benefits offered
hereunder were based on an individual determination and were not offered in conjunction with
any group termination or group severance program and waives any claim to the contrary.

	21.	 	[Option B] Employee represents and agrees that he has been provided relevant cohort
information based on the information available to the Company as of the date this Agreement
was tendered to Employee. This information is attached hereto as Exhibit A. The Parties
acknowledge that simply providing such information does not mean and should not be interpreted
to mean that the Company was obligated to comply with 29 C.F.R. § 1625.22(f).

 

6

 

	22.	 	Employee hereby affirms and acknowledges his continued obligations to comply with the
post-termination covenants contained in his Employment Agreement, including but not limited
to, the non-compete, trade secret and confidentiality provisions. Employee acknowledges that
a copy of the Employment Agreement has been attached to this Agreement as Exhibit [A/B] or has
otherwise been provided to him and, to the extent not inconsistent with the terms of this
Agreement or applicable law, the terms thereof shall be incorporated herein by reference.
Employee acknowledges that the restrictions contained therein are valid and reasonable in
every respect and are necessary to protect the Company’s legitimate business interests.
Employee hereby affirmatively waives any claim or defense to the contrary. Employee hereby
acknowledges that the definition of Competitor, as provided in him Employment Agreement shall
include but not be limited to those entities specifically identified in the updated Competitor
List, attached hereto as Exhibit [B/C].

	23.	 	Employee acknowledges that the Company as well as its parent, subsidiary and affiliated
companies (“Companies” herein) possess, and he has been granted access to, certain trade
secrets as well as other confidential and proprietary information that they have acquired at
great effort and expense. Such information includes, without limitation, confidential
information regarding products and services, marketing strategies, business plans, operations,
costs, current or, prospective customer information (including customer contacts,
requirements, creditworthiness and like matters), product concepts, designs, prototypes or
specifications, regulatory compliance issues, research and development efforts, technical data
and know-how, sales information, including pricing and other terms and conditions of sale,
financial information, internal procedures, techniques, forecasts, methods, trade information,
trade secrets, software programs, project requirements, inventions, trademarks, trade names,
and similar information regarding the Companies’ business (collectively referred to herein as
“Confidential Information”).

	24.	 	Employee agrees that all such Confidential Information is and shall remain the sole and
exclusive property of the Company. Except as may be expressly authorized by the Company in
writing, or as may be required by law after providing due notice thereof to the Company,
Employee agrees not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party for as long thereafter as such information remains
confidential (or as limited by applicable law) and agrees not to make use of any such
Confidential Information for Employee’s own purposes or for the benefit of any other entity or
person. The Parties acknowledge that Confidential Information shall not include any
information that is otherwise made public through no fault of Employee or other wrong doing.

 

7

 

	25.	 	On or before Employee’s Effective Termination Date or per the Company’s request, Employee
agrees to return the original and all copies of all things in his possession or control
relating to the Company or its business, including but not limited to any and all contracts,
reports, memoranda, correspondence, manuals, forms, records, designs, budgets, contact
information or lists (including customer, vendor or supplier lists), ledger sheets or other
financial information, drawings, plans (including, but not limited to, business, marketing and
strategic plans), personnel or other business files, computer hardware, software, or access
codes, door and file keys, identification, credit cards, pager, phone, and any and all other
physical, intellectual, or personal property of any nature that he received, prepared, helped
prepare, or directed preparation of in connection with his employment with the Company. Nothing
contained herein shall be construed to require the return of any non-confidential and de minimis
items regarding Employee’s pay, benefits or other rights of employment such as pay stubs, W-2
forms, 401(k) plan summaries, benefit statements, etc.

	26.	 	Employee hereby consents and authorizes the Company to deduct as an offset from the
above-referenced severance payments the value of any Company property not returned or returned
in a damaged condition as well as any monies paid by the Company on Employee’s behalf (e.g.,
payment of any outstanding American Express bill).

	27.	 	Employee agrees to cooperate with the Company in connection with any pending or future
litigation, proceeding or other matter which has been or may be brought against or by the
Company before any agency, court, or other tribunal and concerning or relating in any way to
any matter falling within Employee’s knowledge or former area of responsibility. Employee
agrees to immediately notify the Company, through the Office of the General Counsel, in the
event he is contacted by any outside attorney (including paralegals or other affiliated
parties) unless (i) the Company is represented by the attorney, (ii) Employee is represented
by the attorney for the purpose of protecting his personal interests or (iii) the Company has
been advised of and has approved such contact. Employee agrees to provide reasonable
assistance and completely truthful testimony in such matters including, without limitation,
facilitating and assisting in the preparation of any underlying defense, responding to
discovery requests, preparing for and attending deposition(s) as well as appearing in court to
provide truthful testimony. The Company agrees to reimburse Employee for all reasonable out
of pocket expenses incurred at the request of the Company associated with such assistance and
testimony.

	28.	 	Employee agrees not to make any written or oral statement that may defame, disparage or cast
in a negative light so as to do harm to the personal or professional reputation of (a) the
Company, (b) its employees, officers, directors or trustees or (c) the services and/or
products provided by the Company and its subsidiaries or affiliate entities. Similarly, in
response to any written inquiry from any prospective employer or in connection with a written
inquiry in connection with any future business relationship involving Employee, the Company
agrees not to provide any information that may defame, disparage or cast in a negative light
so as to do harm to the personal or professional reputation of Employee. The Parties
acknowledge, however, that nothing contained herein shall be construed to prevent or prohibit
the Company or the Employee from providing truthful information in response to any court
order, discovery request, subpoena or other lawful request.

 

8

 

	29.	 	EMPLOYEE SPECIFICALLY AGREES AND UNDERSTANDS THAT THE EXISTENCE AND TERMS OF THIS AGREEMENT
ARE STRICTLY CONFIDENTIAL AND THAT SUCH CONFIDENTIALITY IS A MATERIAL TERM OF THIS AGREEMENT.
Accordingly, except as required by law or unless authorized to do so by the Company in
writing, Employee agrees that he shall not communicate, display or otherwise reveal any of the
contents of this Agreement to anyone other than his spouse, legal counsel or financial
advisor provided, however, that they are first advised of the confidential nature of this
Agreement and Employee obtains their agreement to be bound by the same. The Company agrees that
Employee may respond to legitimate inquiries regarding the termination of his employment by
stating that the Parties have terminated their relationship on an amicable basis and that the
Parties have entered into a Confidential Separation and Release Agreement that prohibits him
from further discussing the specifics of his separation. Nothing contained herein shall be
construed to prevent Employee from discussing or otherwise advising subsequent employers of the
existence of any obligations as set forth in his Employment Agreement. Further, nothing
contained herein shall be construed to limit or otherwise restrict the Company’s ability to
disclose the terms and conditions of this Agreement as may be required by business necessity.

	30.	 	In the event that Employee breaches or threatens to breach any provision of this Agreement,
he agrees that the Company shall be entitled to seek any and all equitable and legal relief
provided by law, specifically including immediate and permanent injunctive relief. Employee
hereby waives any claim that the Company has an adequate remedy at law. In addition, and to
the extent not prohibited by law, Employee agrees that the Company shall be entitled to
discontinue providing any additional Severance Benefits upon such breach or threatened breach
as well as an award of all costs and attorneys’ fees incurred by the Company in any successful
effort to enforce the terms of this Agreement. Employee agrees that the foregoing relief
shall not be construed to limit or otherwise restrict the Company’s ability to pursue any
other remedy provided by law, including the recovery of any actual, compensatory or punitive
damages. Moreover, if Employee pursues any claims against the Company subject to the
foregoing General Release, or breaches the above confidentiality provision, Employee agrees to
immediately reimburse the Company for the value of all benefits received under this Agreement
to the fullest extent permitted by law.

	31.	 	Similarly, in the event that the Company breaches or threatens to breach any provision of
this Agreement, Employee shall be entitled to seek any and all equitable or other available
relief provided by law, specifically including immediate and permanent injunctive relief. In
the event Employee is required to file suit to enforce the terms of this Agreement, the
Company agrees that Employee shall be entitled to an award of all costs and attorneys’ fees
incurred by him in any wholly successful effort (i.e. entry of a judgment in his favor) to
enforce the terms of this Agreement. In the event Employee is wholly unsuccessful, the
Company shall be entitled to an award of its costs and attorneys’ fees.

	32.	 	Both Parties acknowledge that this Agreement is entered into solely for the purpose of
terminating Employee’s employment relationship with the Company on an amicable basis and shall
not be construed as an admission of liability or wrongdoing by the Company or Employee, both
Parties having expressly denied any such liability or wrongdoing.

	33.	 	Each of the promises and obligations shall be binding upon and shall inure to the benefit of
the heirs, executors, administrators, assigns and successors in interest of each of the
Parties.

	 
	34.	 	The Parties agree that each and every paragraph, sentence, clause, term and provision of this
Agreement is severable and that, if any portion of this Agreement should be deemed not
enforceable for any reason, such portion shall be stricken and the remaining portion or
portions thereof should continue to be enforced to the fullest extent permitted by applicable
law.

 

9

 

	35.	 	This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Indiana without regard to any applicable state’s choice of law provisions.

	36.	 	[USE THIS LANGUAGE IF OWBPA LANGUAGE (FOR EMPLOYEES AGE 40 OR OVER) IS NOT INCLUDED)
Employee acknowledges that he has been offered a period of twenty-one (21) days within which
to consider and review this Agreement; that he has carefully read and fully understands all of
the provisions of this Agreement; and that he has entered into this Agreement knowingly and
voluntarily.

	37.	 	Employee represents and acknowledges that in signing this Agreement he does not rely, and has
not relied, upon any representation or statement made by the Company or by any of the
Company’s employees, officers, agents, stockholders, directors or attorneys with regard to the
subject matter, basis or effect of this Agreement other than those specifically contained
herein.

	38.	 	This Agreement represents the entire agreement between the Parties concerning the subject
matter hereof, shall supersede any and all prior agreements which may otherwise exist between
them concerning the subject matter hereof (specifically excluding, however, the
post-termination obligations contained in an Employee’s Employment Agreement, or any
obligation contained in any other legally-binding document), and shall not be altered,
amended, modified or otherwise changed except by a writing executed by both Parties.

PLEASE READ CAREFULLY. THIS SEPARATION AND RELEASE

AGREEMENT INCLUDES A COMPLETE RELEASE OF ALL

KNOWN AND UNKNOWN CLAIMS.

IN WITNESS WHEREOF, the Parties have themselves signed, or caused a duly authorized agent
thereof to sign, this Agreement on their behalf and thereby acknowledge their intent to be bound by
its terms and conditions.

	 	 	 	 	 	 	 	 	 	 	 
	EMPLOYEE	 	 	 	HILL-ROM COMPANY, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Printed:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Dated:

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

 

10

 

Exhibit B

ILLUSTRATIVE COMPETITOR LIST

The following is an illustrative, non-exhaustive list of Competitors with whom Employee may
not, during his relevant non-compete period, directly or indirectly engage in any of the
competitive activities proscribed by the terms of his Employment Agreement.

	 	•	 	Amico Corporation

	 
	 	•	 	APEX Medical Corp.

	 
	 	•	 	Aramark Corporation

	 
	 	•	 	Barton Medical Corporation

	 
	 	•	 	CareMed Supply, Inc.

	 
	 	•	 	Corona Medical SAS

	 
	 	•	 	Dukane Communication Systems, a division of Edwards Systems Technology, Inc.

	 
	 	•	 	Gaymar Holding Company, LLC (Gaymar Industries, Inc.)

	 
	 	•	 	Getinge Group (Arjo; Getinge; Maquet; Pegasus; Huntleigh Technology Plc (Huntleigh
Healthcare, LLC))

	 
	 	•	 	Industrie Guido Malvestio S.P.A.

	 
	 	•	 	Joerns Healthcare, Inc.

	 
	 	•	 	Kinetic Concepts, Inc. (KCI)

	 
	 	•	 	MedaSTAT, LLC

	 
	 	•	 	Merivaara Corporation

	 
	 	•	 	Nemschoff Chairs, Inc.

	 
	 	•	 	Paramount Bed Company, Ltd.

	 
	 	•	 	Pegasus Airwave, Inc.

	 
	 	•	 	Radianse, Inc.

	 
	 	•	 	Recovercare, LLC (Stenbar)

	 
	 	•	 	Statcom (Jackson Healthcare Solutions)

	 
	 	•	 	Tele-Tracking Technologies, Inc.

	 
	 	•	 	Universal Hospital Services, Inc.

	 	•	 	Anodyne Medical Device, Inc.

	 
	 	•	 	Apria Healthcare Inc.

	 
	 	•	 	Ascom (Ascom US, Inc.)

	 
	 	•	 	B.G. Industries, Inc.

	 
	 	•	 	Comfortex, Inc.

	 
	 	•	 	Custom Medical Solutions

	 
	 	•	 	Freedom Medical, Inc.

	 
	 	•	 	GF Health Products, Inc. (Graham Field)

	 
	 	•	 	Intego Systems, Inc. (formerly known as Wescom Products, Inc.)

	 
	 	•	 	 Invacare Corporation

	 
	 	•	 	Joh. Stiegelmeyer & Co., GmbH (Stiegelmeyer)

	 
	 	•	 	Linet (Linet France, Linet Far East)

	 
	 	•	 	Medline Industries, Inc.

	 
	 	•	 	Modular Services Company

	 
	 	•	 	Nurture by Steelcase, Inc.

	 
	 	•	 	Pardo

	 
	 	•	 	Premise Corporation

	 
	 	•	 	Rauland-Borg Corporation

	 
	 	•	 	SIZEwise Rentals, LLC

	 
	 	•	 	Stryker Corporation

	 
	 	•	 	Tempur-Pedic Medical, Inc.

	 
	 	•	 	Voelker AG

 

 

 

While the above list is intended to identify the Company’s primary competitors, it should not
be construed as all encompassing so as to exclude other potential competitors falling within the
Non-Compete definitions of “Competitor.” The Company reserves the right to amend this list at any
time in its sole discretion to identify other or additional Competitors based on changes in the
products and services offered, changes in its business or industry as well as changes in the duties
and responsibilities of the individual employee. An updated list will be provided to Employee upon
reasonable request. Employees are encouraged to consult with the Company prior to accepting any
position with any potential competitor.

(Revised list 12/07)

 

2

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