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                                                                   EXHIBIT 10.69

OSTEOTECH INC.
INNOVATORS IN MUSCULOSKELETAL SCIENCE

THE MANAGEMENT PERFORMANCE BONUS PLAN

OSTEOTECH, INC.

OVERVIEW OF THE MANAGEMENT PERFORMANCE PLAN                            JUNE 2006

     Osteotech's Management Performance Bonus Plan is designed to focus
     attention on and motivate the achievement of annual Company performance
     objectives.

     This document explains how the Management Performance Bonus Plan works. It
     will answer many of your questions about the mechanics of the Plan and
     provide the information you need to understand how performance affects your
     earnings.

ELIGIBILITY

     Position responsibilities and the ability to directly influence Company
     performance are the key criteria used to determine participation in the
     Management Performance Bonus Plan.

     Eligibility to participate in the Management Performance Bonus Plan is
     extended to Officers, Sr. Directors/Directors and named senior managers.
     Eligibility for an award is based 100% upon the accomplishment of the OTI
     performance measures, as established on an annual basis.

PLAN EFFECTIVE DATE

     The Plan is effective January 1, 2006. This Plan supersedes all prior
     programs and previously agreed to terms for incentive compensation, with
     the exception of certain sales management.

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PLAN OBJECTIVES

     The Management Performance Bonus Plan rewards the achievement of
     pre-established annual OTI performance objectives.

     Osteotech's Management Performance Bonus Plan is designed to:

     1.   Focus attention on the achievement of pre-established annual OTI
          performance objectives.

     2.   Support the objective-setting processes - awards are tied to the
          accomplishment of OTI performance objectives.

     3.   Attract and retain high-performing Officers, Sr. Directors/Directors,
          and Senior Managers.

OTI PERFORMANCE DETERMINES ACTUAL AWARDS

     Each year corporate executive management, with approval of the Compensation
     Committee of the Board of Directors, will establish annual OTI performance
     objectives and weightings for the coming year, in support of the annual
     business plan.

EACH PARTICIPANT HAS A TARGET INCENTIVE OPPORTUNITY

     As a participant in the Plan, you have a target incentive opportunity equal
     to a percentage of your annual base salary.

     The target incentive opportunity is the amount that would be paid if OTI
     performance results meet pre-established annual OTI performance objectives.

     The target incentive opportunity may differ from the actual payout:

     -    The target incentive opportunity is the amount available for meeting
          all performance objectives.

     -    The actual payout is the amount paid based upon the level of
          performance achieved. The payout may be higher, lower, or equal to the
          target incentive opportunity.

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THE TARGET INCENTIVE OPPORTUNITY IS A PERCENT OF BASE SALARY

     The target incentive opportunity is calculated as a percentage of base
     salary. Each year, as part of the planning process, corporate executive
     management, with approval of the Compensation Committee of the Board of
     Directors, will determine what the target incentive opportunities will be
     for Plan participants.

THE OTI PERFORMANCE MEASURES ARE ESTABLISHED EACH YEAR

     Each year performance measures will be reviewed to determine which specific
     performance measures best support the Company's business plan. An
     appropriate weighting will be determined for each performance measure
     selected. EBIT (or EBITDA) and Revenue Growth are performance measures that
     will be used each year.

RANGE OF EXPECTED PERFORMANCE

     At the beginning of each year, a range of performance will be established
     for the annual OTI performance objectives. This range will be based upon
     three levels of performance:

-    Performance Gate, or minimum level of performance. Some performance
     measures may have a Performance Gate set, at which performance below the
     Performance Gate will result in no payout for that performance measure.

-    Target, or planned level of performance. This represents 100% achievement
     of the OTI annual performance objectives.

-    Maximum level of performance. Some performance measures may have a maximum
     performance level, at which a maximum payout will be made based upon annual
     OTI performance exceeding expectations.

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PERFORMANCE GATE

     Each year corporate executive management, with the approval of the
     Compensation Committee of the Board of Directors, may set minimum
     performance levels for one or more performance measures, below which there
     are no payouts.

PAYOUT BEYOND TARGET INCENTIVE OPPORTUNITY FOR OTI PERFORMANCE THAT EXCEEDS
EXPECTATIONS

     Each year, based upon the Company performance objectives, corporate
     executive management, with the approval of the Compensation Committee of
     the Board of Directors, may decide that an additional payout will be made
     for performance that exceeds expectations. The actual payout is calculated
     by multiplying the level of achievement, times the weighting, times the
     target incentive opportunity.

PAYOUT BELOW TARGET INCENTIVE OPPORTUNITY FOR OTI PERFORMANCE THAT DOES NOT MEET
EXPECTATIONS

     On a year-by-year basis, there may be a minimum level of achievement of
     pre-established OTI performance objectives, below which there will be no
     payout. In addition, if your individual performance is rated
     "Unsatisfactory" there will be no payout.

     Your actual payout will be less than the target incentive opportunity if
     OTI performance falls below expectations.

APPROVAL OF PAYOUTS

     The Human Resources and Finance Department will calculate actual payouts.
     The final approval comes from the CEO of OTI.

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ELIGIBILITY FOR PAYOUT

     Eligibility to participate in the Performance Bonus Plan is extended to
     Officers; Sr. Directors/Directors and named senior managers, who have been
     functioning in one of the stated positions. Payouts will be prorated, based
     upon months of eligibility.

     Eligible participants must be actively employed on the day of the payout to
     receive their Management Performance Bonus. However, if a participant
     retires, dies, or becomes permanently disabled during the plan year, a
     prorated payout will be paid based upon the time worked during the year.
     This payout may be granted at 100%, at the discretion of the Compensation
     Committee.

     Employees who are demoted during the Plan year will be eligible for a
     prorated payout based upon the number of months that they were in an
     eligible position. If they were in two different eligible positions, they
     will receive a prorated amount for the number of months in each eligible
     position.

PLAN CHANGES

     Each year, management reserves the right to reassess the terms and
     conditions of the plan and revise the plan design and components.

PAYOUT DETERMINATION

     Final payouts will be determined and paid out, as early as possible,
     following the year-end close and audit.EX-10.1

 

EXHIBIT 10.1

NON-COMPETITION AGREEMENT

     NON-COMPETITION AGREEMENT (the “Agreement”) by and between Webster Financial Corporation,
a Delaware corporation (the “Company”), and Gerald P. Plush (the “Executive”) dated as of the
5th day of July, 2006 (the “Effective Date”).

     WHEREAS, as of the Effective Date, the Executive commences employment with the Company as
Chief Financial Officer, and in connection therewith, the Company wishes to enter into certain
restrictive covenants with the Executive as set forth herein;

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, the Company
and the Executive (individually a “Party” and together the “Parties”) agree as follows:

     1. Severance Benefits.

          (a) Benefits. The Company may terminate the Executive’s employment at any time with
or without cause or notice. The Parties agree that if the Company terminates the Executive’s
employment without Cause, then the Company will (i) make a lump sum payment to the Executive equal
to the sum of (x) the Executive’s then current annual base salary and (y) the amount of any bonuses
paid pursuant to the Company’s annual incentive compensation plan during the then current fiscal
year multiplied by a fraction the numerator of which is the number of full months during the then
current fiscal year in which the Executive was employed and the denominator of which is 12, and
(ii) subject to certain limitations, continue to provide the Executive with medical and dental
coverage for the shorter of one year or until the Executive accepts other employment on a
substantially full time basis. As a pre-condition to the Executive becoming entitled to the
separation payments just described, the Executive agrees to execute at the time of the Executive’s
termination of employment a general release and waiver in favor of the Company in exactly the form
provided to the Executive by the Company without alteration or addition (the “Release Agreement”).
The lump sum severance amount due under this Agreement shall be paid within thirty (30) days after
the Executive’s termination of employment or, if later, the date the Release Agreement becomes
irrevocable.

          (b) Cause. For the purposes of this Section 1, Cause shall mean any of the following:
personal dishonesty; incompetence; willful misconduct; breach of fiduciary duty involving personal
profit; intentional failure to perform stated duties; willful violation of any law, rule, or
regulation (other than traffic violations or similar offenses); or material breach of any provision
of this Agreement. In determining incompetence, the acts or omissions shall be measured against
standards generally prevailing in the federally insured financial institutions industry; provided,
that it shall be the Company’s burden to prove the alleged acts and omissions and the prevailing
nature of the standards the Company shall have alleged are violated by such acts and/or omissions.

     2. Covenants.

          (a) Confidential Information. While employed by the Company and thereafter,
the Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of its affiliates and
their respective businesses, which shall have been obtained by the Executive during the Executive’s
employment by the Company or any of its affiliates and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement). After termination of the Executive’s employment with the Company for any reason,
the Executive shall not, without the prior

 

 

written consent of the Company or as may otherwise be required by law or legal process: (i)
communicate or divulge any such information, knowledge or data to anyone other than the Company and
those designated by it; or (ii) use to the Executive’s advantage or to the detriment of the Company
any such information, knowledge or data.

          (b) Non-Recruitment of Employees. During the period of Executive’s
employment with the Company and its subsidiaries and the additional period ending on the first
anniversary of the date of termination of the Executive’s employment for any reason, except to the
extent provided otherwise in Section 2(d) (the “Restricted Period”), the Executive shall not,
without the prior written consent of the Company, directly or indirectly, (i) offer employment (or
a consulting, agency, independent contractor or other similar paid position) to any
person who is or was at any time during the six months prior to such offer an employee,
representative, officer or director of the Company or any of its subsidiaries or (ii) induce,
encourage or solicit any such person to accept employment (or any aforesaid position) with any
company or entity with which the Executive is then employed or otherwise affiliated. Further,
during the Restricted Period, the Executive shall not encourage or induce any employee,
representative, officer or director of the Company or any of its subsidiaries to cease their
relationship with the Company or any of its subsidiaries for any reason. This Section 2(b) shall
not apply to solicitation, recruitment, encouragement, inducement or termination during the period
of Executive’s employment with the Company and on behalf of the Company or any of its subsidiaries.

          (c) No Competition — Solicitation of Business. During the Restricted
Period, the Executive shall not directly or indirectly, for the purpose of providing services or
products that are competitive with those provided by the Company and its subsidiaries: (i) become
an officer, agent, employee, partner or director of any other corporation, partnership or other
entity, or otherwise render services to or assist or hold an interest (except as a less than
two-percent shareholder of a publicly traded company) in any Significant Competitor (as defined
below), or (ii) solicit the business of (A) any active client or customer of the Company or any of
its subsidiaries, or (B) any person or entity who is or was at any time during the six months prior
to such solicitation a client or customer of the Company or any of its subsidiaries. The term
“Significant Competitor” shall mean any commercial bank, savings bank, savings and loan
association, or mortgage banking company, or a holding company affiliate of any of the foregoing,
which has an office out of which the Employee would be primarily based within 35 miles of the
Bank’s home office or which is an institution that has more than $1 billion of deposits in
Connecticut.

          (d) Inapplicability Following Change of Control. Notwithstanding anything
in this Agreement to the contrary, in the event that the Executive’s employment terminates for any
reason during the three-year period following a Change of Control (as defined in Exhibit
A), Section 2(b) and Section 2(c) of this Agreement shall not apply.

          (e) Remedies. The Executive acknowledges and agrees that the terms of
Section 2: (i) are reasonable in light of all of the circumstances, (ii) are sufficiently limited
to protect the legitimate interests of the Company and its subsidiaries, (iii) impose no undue
hardship on the Executive and (iv) are not injurious to the public. The Executive further
acknowledges and agrees that: (A) the Executive’s breach of the provisions of Section 2 will cause
the Company irreparable harm, which likely cannot be adequately compensated by money damages, and
(B) if the Company elects to prevent the Executive from breaching such provisions by obtaining an
injunction against the Executive, there is a reasonable probability of the Company’s eventual
success on the merits. The Executive consents and agrees that if the Executive commits any such
breach or threatens to commit any breach, the Company shall be entitled to temporary, preliminary,
and/or permanent injunctive relief from a court of competent jurisdiction, without posting any bond
or other security and without the necessity of proof of actual damage, in addition to, and not in
lieu of, such other remedies as may be available to the Company for such breach, including the
recovery of money damages. If any of the provisions of Section 2 are determined to be wholly or
partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof
may be reformed so that it is enforceable to the maximum extent permitted by law; and in the case
when such provision is not capable of being reformed, it shall be severed and all remaining
provisions of this Agreement shall be enforced. If any of the provisions of this Section 2 are
determined to be wholly

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or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in
any way diminish the Company’s right to enforce any such covenant in any other jurisdiction.

     3. Successors.

          (a) This Agreement is personal to the Executive and without the prior written
consent of the Company shall not be assignable by the Executive other than by will or the laws of
descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the
Executive’s legal representatives. This Agreement shall inure to the benefit of and be binding
upon the Company and its successors and assigns. For purposes hereof, the term “affiliate” shall
mean any entity controlled by, controlling or under common control with the Company.

          (b) No rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company except that such rights or obligations may be assigned or transferred
pursuant to a merger or consolidation in which the Company is not the continuing entity, or the
sale or liquidation of all or substantially all or a substantial portion of the assets of the
Company. The Company shall cause any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of its business and/or assets to assume
expressly and agree to perform this Agreement. As used in this Agreement, “Company” shall mean the
Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

     4. Miscellaneous.

          (a) This Agreement shall be governed by and construed in accordance with the laws of
the State of Connecticut, without reference to principles of conflict of laws. The Parties hereto
irrevocably agree to submit to the jurisdiction and venue of the courts of the State of
Connecticut, in any action or proceeding brought with respect to or in connection with this
Agreement. The captions of this Agreement are not part of the provisions hereof and shall have no
force or effect. This Agreement may not be amended or modified otherwise than by a written
agreement executed by the Parties hereto or their respective successors and legal representatives.

          (b) All notices and other communications hereunder shall be in writing and shall be
given by hand delivery to the other Party or by registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

     If to the Executive:

     At the most recent address on file for the Executive at the Company.

     If to the Company:

Webster Financial Corporation

Webster Plaza

145 Bank Street

Waterbury, Connecticut 06702

Attention: General Counsel

or to such other address as either Party shall have furnished to the other in writing in
accordance herewith. Notice and communications shall be effective when actually received by
the addressee.

          (c) The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement.

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          (d) The Executive’s or the Company’s failure to insist upon strict compliance with
any provision of this Agreement or the failure to assert any right the Executive or the Company may
have hereunder, shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

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          IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name and on its behalf, all as of the day and year first above written.

	 	 	 	 	 
	 	 	/s/ Gerald P. Plush
	 	 	 
	 	 	         Gerald P. Plush
	 
	 	 	 	 
	 	 	WEBSTER FINANCIAL CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ James C. Smith
	 

	 	 	 	 
	 	 	Title: Chairman and CEO

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EXHIBIT A

          For the purpose of this Agreement, a “Change of Control” shall mean:

          (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
20% or more of either (i) the then outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection
(a), the following acquisitions shall not constitute a Change of Control: (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company or (iv) any acquisition by any corporation pursuant to a transaction
which complies with clauses (i), (ii) and (iii) of subsection (c); or

          (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

          (c) Consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any
corporation resulting from such Business Combination or any employee benefit plan (or related
trust) of the Company or such corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the combined voting power of
the then outstanding voting securities of such corporation except to the extent that such ownership
existed prior to the Business Combination and (iii) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the action of the
Board, providing for such Business Combination; or

          (d) Approval by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

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