Document:

Exhibit 10.29

Exhibit 10.29

EMPLOYMENT AGREEMENT

Amended and Restated as of November 11, 2008

THIS EMPLOYMENT AGREEMENT (the “Agreement”) dated as of November 11, 2008 (the
“Effective Date”) by and between K-TRON INTERNATIONAL, INC., a New Jersey corporation
(“K-Tron”), and KEVIN C. BOWEN (the “Employee”).

K-Tron and the Employee are parties to an Employment Agreement dated January 1, 1992 (the
“Existing Agreement”), which provides for the Employee’s employment by K-Tron or another
member of the K-Tron Group (K-Tron and its subsidiaries as they may exist from time to time are
collectively referred to herein as the “K-Tron Group” and each is sometimes individually
referred to herein as a “member” of the K-Tron Group), upon the terms and conditions
therein set forth.

K-Tron and the Employee desire to amend the Existing Agreement in various respects, including
to comply with section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree that the
Existing Agreement is amended and restated as follows:

1. Employment. K-Tron agrees that either K-Tron or another member of the K-Tron Group
will employ the Employee, and the Employee hereby accepts such employment and agrees to perform his
duties and responsibilities hereunder, in accordance with the terms, conditions and other
provisions hereinafter set forth.

1.1 Employment Term. The employment term under the Existing Agreement commenced on
January 1, 1992. The “Employment Term” under this Agreement commences on the Effective
Date and shall continue until terminated in accordance with Section 8 hereof.

1.2 Duties and Responsibilities. During the Employment Term, the Employee shall be
employed by K-Tron or another member of the K-Tron Group, as determined by K-Tron, and he shall
perform all duties and accept all responsibilities incidental to any position in which he shall be
so employed or as may be assigned to him by the Board of Directors of K-Tron (the “K-Tron
Board”) or its chief executive officer and shall cooperate fully with the K-Tron Board and
K-Tron’s chief executive officer. If the Employee is employed by another member of the K-Tron
Group, the foregoing reference to the K-Tron Board and to K-Tron’s chief executive officer shall
also be deemed to include the board of directors and chief executive officer of such other member.

1.3 Extent of Service. During the Employment Term, the Employee shall use his
reasonable best efforts in the business of the member of the K-Tron Group by which he is employed,
and he shall devote substantially his full time, attention and energy to the business of the member
of the K-Tron Group by which he is employed and to the performance of his services and the
discharge of his duties and responsibilities hereunder. Except as provided in Section 5 hereof,
the foregoing shall not be construed as preventing the Employee from making investments in other
businesses or enterprises or from being engaged in civic or charitable affairs, provided that the
Employee agrees not to become engaged in any other activity which may interfere with his ability to
discharge his duties and responsibilities hereunder to K-Tron or another member of the K-Tron
Group. The Employee further agrees not to work on either a part time or independent contractual
basis for any other business or enterprise during the Employment Term without the prior written
approval of the K-Tron Board.

 

 

 

1.4 Compensation and Benefits.

(a) For all the services rendered during the Employment Term by the Employee hereunder as an
employee of a member of the K-Tron Group, such member of the K-Tron Group by which he is employed
shall pay the Employee a base salary (“Base Salary”) at an annual rate not less than the
rate in effect on the Effective Date, which shall be payable in installments at such times as such
member of the K-Tron Group customarily pays its other senior level executives (but in no event less
often than monthly). Such Base Salary may be increased from time to time during the Employment
Term in the sole discretion of the K-Tron Board or any duly authorized committee thereof, and any
such increased salary shall thereafter be the Employee’s new Base Salary for all purposes of this
Agreement. Notwithstanding the foregoing, either the K-Tron Board or K-Tron’s chief executive
officer, or the board of directors or chief executive officer of any other member of the K-Tron
Group employing the Employee, shall have the right at any time or times to reduce the Employee’s
Base Salary if such reduction is generally being made for other officers of K-Tron or of other
members of the K-Tron Group holding comparable positions. The Employee shall also be entitled to
receive bonus payments in the sole discretion of the K-Tron Board or any duly authorized committee
thereof.

(b) In addition to such annual salary and bonus payments (if any), the Employee shall be
entitled to a car allowance (“Car Allowance”) of not less than $12,000 annually, which
shall be earned in bi-weekly installments. The Employee shall also be entitled to annual paid
vacation of five weeks per year, and he shall also be entitled to participate in such employee
benefit plans of K-Tron as may exist from time to time on the same basis as other senior level
executives of K-Tron.

2. Reimbursement of Expenses. The member of the K-Tron Group employing the Employee
shall reimburse the Employee for all ordinary and necessary out-of-pocket business expenses
incurred by him in connection with the discharge of his duties and responsibilities hereunder
during the Employment Term in accordance with such company’s expense approval procedures then in
effect and upon presentation to such company by the Employee of an itemized account and written
proof of such expenses.

3. Developments. The Employee shall disclose fully, promptly and in writing to K-Tron
or to any other member of the K-Tron Group by which he is employed any and all inventions,
discoveries, improvements, modifications and the like, whether patentable or not, which he
conceives, makes or develops, solely or jointly with others, while employed by K-Tron or another
member of the K-Tron Group and which (a) relate to the business, work or activities of any member
of the K-Tron Group or (b) result from or are suggested by the carrying out of his duties
hereunder, or from or by any information which he may receive while employed by K-Tron

 

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or another
member of the K-Tron Group. The Employee hereby assigns, transfers and conveys to K-Tron or its
designee all of his right, title and interest in and to any and all such inventions, discoveries,
improvements, modifications and the like and agrees to take all such actions as may be requested by
K-Tron at any time with respect to any such invention, discovery, improvement, modification or the
like to confirm or evidence such assignment, transfer and conveyance. Furthermore, at any time and
from time to time, upon the request of K-Tron, the Employee shall execute and deliver to K-Tron, or
to another member of the K-Tron Group designated by K-Tron, any and all instruments, documents and
papers, give evidence and do any and all other acts which, in the opinion of counsel for K-Tron,
are or may be necessary or desirable to document such assignment, transfer and conveyance or to
enable K-Tron or such other member of the K-Tron Group to file and prosecute applications for and
to acquire, maintain and enforce any and all patents, trademark registrations or copyrights under
United States or foreign law with respect to any such inventions, discoveries, improvements,
modifications or the like or to obtain any extension, validation, reissue, continuance or renewal
of any such patent, trademark or copyright. K-Tron or such other member of the K-Tron Group shall
be responsible for the preparation of any such instruments, documents and papers and for the
prosecution of any such proceedings and shall reimburse the Employee for all reasonable expenses
incurred by him in compliance with the provisions of this Section 3.

4. Confidential Information. The Employee acknowledges that, by reason of his
employment by K-Tron or another member of the K-Tron Group, he will have access to confidential
information of the K-Tron Group, including, without limitation, information and knowledge
pertaining to business strategies, financial performance, products, inventions, discoveries,
improvements, innovations, designs, ideas, trade secrets, proprietary information, manufacturing,
packaging, advertising, distribution and sales methods, customer and client lists and relationships
between members of the K-Tron Group and dealers, distributors, sales representatives, wholesalers,
customers, clients, suppliers and others who have business dealings with such members
(“Confidential Information”). The Employee acknowledges that such Confidential Information
is a valuable and unique asset of K-Tron and the other members of the K-Tron Group and covenants
that, both during and after the Employment Term, he will not disclose any such Confidential
Information to any person (except as his duties as an employee of K-Tron or another member of the
K-Tron Group may require) without the prior written authorization of the K-Tron Board. The
obligation of confidentiality imposed by this Section 4 shall not apply to information which
appears in issued patents or printed publications, which otherwise becomes generally known in the
industry through no act of the Employee in breach of this Agreement or which is required to be
disclosed by court order or applicable law.

5. Non-Competition. During (a) the Employment Term and (b) for one year thereafter
only in the event that such Employment Term is terminated under any of Section 8.1 (Voluntary
Resignation), 8.2 (Partial or Total Disability) or 8.4 (Cause) hereof, the Employee shall not,
unless acting as an employee pursuant hereto or with the prior written consent of the K-Tron Board,
directly or indirectly, own, manage, operate, finance, join, control or participate in the
ownership, management, operation, financing or control of, or be connected as an officer, director,
employee, partner, principal, agent, representative, consultant or otherwise with, or use or permit
his name to be used in connection with, any business or enterprise engaged in the business of
designing, engineering, manufacturing, marketing, selling or distributing feeding, pneumatic
conveying or size reduction equipment, or in any other business

 

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then engaged in by K-Tron or any
other member of the K-Tron Group, within (x) any state of the United States or  the District of
Columbia or (y) any other country in which K-Tron or any other member of the K-Tron Group has
engaged in any such business within the prior year or is about to engage in any such business;
provided, however, that notwithstanding the foregoing, this provision shall not be construed to
prohibit the passive ownership by the Employee of not more than 1% of the equity of any entity
which is engaged in any of the foregoing businesses having a class of securities registered
pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In the
event that the provisions of this Section 5 should ever be adjudicated to exceed the time,
geographic, product or other limitations permitted by applicable law in any jurisdiction, then such
provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, product
or other limitations permitted by applicable law.

6. No Solicitation. During (a) the Employment Term and (b) for one year thereafter
only in the event that such Employment Term is terminated under any of Section 8.1 (Voluntary
Resignation), 8.2 (Partial or Total Disability) or 8.4 (Cause) hereof, the Employee shall not,
unless acting as an employee pursuant hereto or with the prior written consent of the K-Tron Board,
(x) call on or solicit, either directly or indirectly, any person, firm, corporation or other
entity who or which is, or within two years prior thereto had been, a customer of any member of the
K-Tron Group, with respect to any matters involving the designing, engineering, manufacturing,
marketing, selling or distributing of feeding, pneumatic conveying or size reduction equipment or
involving any other business then engaged in by any member of the K-Tron Group, or (y) knowingly
solicit for employment any person who is an employee of any member of the K-Tron Group (or who was
such an employee within six months prior to any such termination).

7. Equitable Relief.

7.1 The Employee acknowledges that the restrictions contained in Sections 3, 4, 5 and 6 hereof
are, in view of the nature of the business of K-Tron and the other members of the K-Tron Group,
reasonable and necessary to protect the legitimate interests of the K-Tron Group, that K-Tron would
not have entered into this Agreement in the absence of such restrictions, that the business of the
K-Tron Group is international in scope and that any violation of any provision of those Sections
could result in irreparable injury to K-Tron and the other members of the K-Tron Group.

7.2 The Employee agrees that in the event of any violation of the restrictions referred to in
Section 7.1 above, K-Tron and any other member of the K-Tron Group shall be entitled to preliminary
and permanent injunctive relief, without the necessity of posting a bond or proving actual damages,
and to an equitable accounting of all earnings, profits and other benefits arising from any such
violation, which rights shall be cumulative and in addition to any other rights or remedies to
which K-Tron or any other member of the K-Tron Group may be entitled.

7.3 The Employee irrevocably and unconditionally agrees that in the event of any violation of
the restrictions referred to in Section 7.1 above, an action may be commenced for preliminary and
permanent injunctive relief and other equitable relief in any federal or state court of competent
jurisdiction sitting in Gloucester or Camden County, New Jersey or in any other court of competent
jurisdiction. The Employee hereby waives, to the fullest extent permitted by law, any objection
that he may now or hereafter have to such jurisdiction or to the laying of the venue of any such
suit, action or proceeding brought in such a court and any claim that such suit, action or
proceeding has been brought in an inconvenient forum. The Employee agrees that effective service
of process may be made upon him by mail under the notice provisions contained in Section 13 hereof
and that all pleadings, notices and other papers may be served upon him in the same manner.

 

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7.4 The non-competition and non-solicitation provisions of Sections 5 and 6 above shall be
extended by any time period during which the Employee is in violation of any such provisions.

7.5 The Employee may provide, and any member of the K-Tron Group may similarly provide, a copy
of Sections 3, 4, 5 and 6 of this Agreement to any business or enterprise (a) which the Employee
may directly or indirectly own, manage, operate, finance, join, control or participate in the
ownership, management, operation, financing or control of, or (b) with which he may be connected as
an officer, director, employee, partner, principal, agent, representative, consultant or otherwise,
or in connection with which he may use or permit his name to be used; provided,
however, that this provision shall not apply in respect of Sections 5 and 6 of this
Agreement after expiration of the time periods set forth therein.

7.6 The Employee represents and acknowledges that (a) he has been advised by K-Tron to consult
his own legal counsel in respect of this Agreement and (b) he has had full opportunity to do so.

8. Termination.

8.1 Voluntary Resignation. The Employee may terminate the Employment Term effective
upon not less than 90 days prior written notice to K-Tron. Should the Employee elect to terminate
the Employment Term on this basis, neither K-Tron nor any other member of the K-Tron Group shall
have any liability or obligation to the Employee hereunder after the date on which the Employment
Term ends except for any earned but unpaid Base Salary and Car Allowance, unpaid bonus previously
awarded by the K-Tron Board or any duly authorized committee thereof (an “Unpaid Awarded
Bonus”), and any benefits or payments (excluding any other severance benefits or payments)
payable to the Employee under any applicable formal policy or plan of any member of the K-Tron
Group which covers the Employee at the time of his termination. For purposes of this Agreement, a
termination of the Employment Term for Good Reason under Section 8.6 below shall not constitute a
termination under this Section 8.1.

8.2 Partial or Total Disability. If in the good faith judgment of the K-Tron Board,
based upon the advice of two disinterested physicians, the Employee is unable to perform his duties
and responsibilities hereunder by reason of illness, injury or incapacity for six consecutive
months, or for six months during any 12-month period, during which time K-Tron or the member of the
K-Tron Group actually employing the Employee at the time of his disability shall continue to
compensate the Employee hereunder (with such compensation to be reduced by the amount of any
payments due the Employee for this time period under any applicable disability benefit programs,
including Social Security disability, worker’s compensation and disability retirement benefits),
the Employment Term may be terminated by K-Tron. In the event the Employee is terminated for
disability, neither K-Tron nor any other member of the K-Tron Group shall have any further
liability or obligation to the Employee except for any earned but unpaid Base Salary and Car
Allowance, Unpaid Awarded Bonus, and any benefits or payments (excluding any other severance
benefits or payments) payable to the Employee under any applicable formal policy or plan of any
member of the K-Tron Group which covered the Employee at the termination date of the Employment
Term. The Employee agrees, in the event of any dispute under this Section 8.2 and if requested by
K-Tron, to submit to a physical examination by one or more licensed physicians selected by K-Tron,
the cost of such examinations to be paid by K-Tron.

 

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8.3 Death. In the event that the Employee dies during the Employment Term, the member
of the K-Tron Group actually employing the Employee at the time of his death shall pay to his
executors, administrators or personal representatives, as appropriate, an amount equal to his
then-annual Base Salary which he would otherwise have earned for the month in which he dies and for
three months thereafter. Payment of such amount shall be made in a lump sum within 30 days after
the Employee’s death. Thereafter, neither K-Tron nor any other member of the K-Tron Group shall
have any further liability or obligation hereunder to the Employee’s executors, administrators,
personal representatives, heirs, assigns or any other person claiming under or through him, except
for any earned but unpaid Base Salary and Car Allowance, Unpaid Awarded Bonus, and any benefits or
payments (excluding any other severance benefits or payments) payable to the Employee under any
applicable formal policy or plan of any member of the K-Tron Group which covered the Employee at
the time of his death.

8.4 For Cause. The Employment Term may be terminated at any time by K-Tron, by action
taken in good faith by the K-Tron Board, for “Cause.” For purposes of this Agreement,
“Cause” shall mean the failure of the Employee to observe or perform (other than by reason
of illness, injury or incapacity) any of the material terms or provisions of this Agreement
provided that the Employee has been given written notice of such failure and such failure has
continued for 30 days thereafter, dishonesty, disloyalty, willful misconduct, conviction of a
felony or other crime involving moral turpitude, misappropriation of funds, habitual insobriety,
substance abuse, similar like cause, any action on the part of the Employee involving willful and
deliberate malfeasance or gross negligence in the performance of his duties and responsibilities
hereunder, any other action on the part of the Employee that is damaging or detrimental in a
significant way to any member of the K-Tron Group or any willful violation by the Employee of a
written directive from the K-Tron Board or K-Tron’s chief executive officer. Should the Employment
Term terminate pursuant to this Section 8.4, neither K-Tron nor any other member of the K-Tron
Group shall have any liability or obligation to the Employee after the date on which the Employment
Term ends except for any earned but unpaid Base Salary and Car Allowance, Unpaid Awarded Bonus, and
any benefits or payments (excluding any severance benefits or payments) payable to the Employee
under any applicable formal policy or plan of any member of the K-Tron Group which covered the
Employee at the termination date of the Employment Term.

 

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8.5 Without Cause.

(a) K-Tron, by action of the K-Tron Board, may terminate the Employee’s employment and the
Employment Term at any time without Cause upon 30 days written notice to the Employee.

(b) Upon termination by K-Tron without Cause, if the Employee executes and does not revoke a
written Release (as defined below), the Employee shall be entitled to receive a lump sum payment
equal to 100% of the Employee’s then-annual Base Salary and Car Allowance. The lump sum payment
shall be made within 30 days after the effective date of the Employee’s termination of employment.
Upon payment, neither K-Tron nor any other member of the K-Tron Group shall have any further
liability or obligation to the Employee hereunder after the date of termination of the Employment
Term except for any earned but unpaid Base Salary and Car Allowance, Unpaid Awarded Bonus, and any
benefits or payments (excluding any other severance benefits or payments) payable to the Employee
under any applicable formal policy or plan of any member of the K-Tron Group which covered the
Employee at the termination date of the Employment Term.

(c) In order to receive the payment under subsection (b) above, the Employee must execute and
not revoke a release, in a form acceptable to K-Tron, of any and all claims against the K-Tron
Group and all related parties with respect to all matters arising out of the Employee’s employment
by any member of the K-Tron Group and the termination thereof (other than claims for any
entitlements under the terms of this Agreement or under any plans or programs of any member of the
K-Tron Group under which the Employee has accrued and is due a benefit) (the “Release”).

8.6 Good Reason.

(a) The Employee may initiate a termination of the Employee’s employment and the Employment
Term by resigning for Good Reason (as defined below) in accordance with this Section 8.6. Upon
resignation by the Employee for Good Reason, if the Employee executes and does not revoke a written
Release, the Employee shall be entitled to receive a lump sum payment equal to 100% of the
Employee’s then-annual Base Salary and Car Allowance. The lump sum payment shall be made within 30
days after the effective date of the Employee’s termination of employment. Upon payment, neither
K-Tron nor any other member of the K-Tron Group shall have any further liability or obligation to
the Employee hereunder after the date of termination of the Employment Term except for any earned
but unpaid Base Salary and Car Allowance, Unpaid Awarded Bonus, and any benefits or payments
(excluding any other severance benefits or payments) payable to the Employee under any applicable
formal policy or plan of any member of the K-Tron Group which covered the Employee at the
termination date of the Employment Term.

(b) For purposes of this Agreement, before a Change of Control (as defined below), “Good
Reason” means any action or inaction that constitutes a material breach of this Agreement by
K-Tron or any other member of the K-Tron Group actually employing the Employee at the time,
including the failure of K-Tron or any other such member of the K-Tron Group to obtain from its
successors the express assumption and agreement required under Section 15.3 hereof. For purposes
of this Agreement, on and after a Change of Control, “Good Reason” means:

(i) A material diminution in the Employee’s Base Salary;

 

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(ii) A material change in the geographic location at which the Employee must perform services
(which, for purposes of this Agreement, means relocation of the Employee’s principal location of
work to any location that is in excess of 50 miles from the location immediately prior to such
relocation);

(iii) A material diminution in the Employee’s authority, duties or responsibilities; or

(iv) Any action or inaction that constitutes a material breach of this Agreement by K-Tron or
any other member of the K-Tron Group actually employing the Employee at the time, including the
failure of K-Tron or any other such member of the K-Tron Group to obtain from its successors the
express assumption and agreement required under Section 15.3 hereof.

In order for the Employee to terminate employment for Good Reason, the Employee must provide
written notice to K-Tron (or any successor thereto) specifying the event that constitutes Good
Reason within 90 days of the initial occurrence of such event. K-Tron (or any successor thereto)
shall have 30 days following the receipt of such notice in which to remedy such event. If K-Tron
(or any successor thereto) does not remedy such event within such 30-day cure period, the
Employee’s employment must terminate within 60 days after the end of the 30-day cure period in
order for the termination to be on account of Good Reason.

(c) For purposes of this Agreement, a “Change of Control” shall be deemed to have
occurred if:

(i) a liquidation or dissolution of K-Tron or the sale (excluding transfers to subsidiaries)
of all or a substantial majority of the assets of K-Tron or the K-Tron Group occurs;

(ii) as a result of a tender offer, exchange offer, stock purchase (excluding a redemption
approved by the K-Tron Board which is not in connection with any of the other events mentioned in
this clause (ii)), other stock acquisition, merger, consolidation, recapitalization, reverse stock
split, sale or transfer of assets or other transaction, any person or group (as such terms are used
in and under Section 13(d) of the Exchange Act) other than the Employee or a group which includes
the Employee becomes the beneficial owner (as defined in Rule 13-d under the Exchange Act),
directly or indirectly, of securities of K-Tron representing more than 15% of the common stock of
K-Tron or the combined voting power of K-Tron’s then outstanding securities; or

(iii) during any period of two consecutive years, individuals who, at the beginning of such
period, constitute the K-Tron Board cease for any reason to constitute at least a majority thereof,
unless the election, or the nomination for election by K-Tron’s shareholders, of at least
two-thirds of the directors who were not directors at the beginning of such period was approved by
a vote of at least two-thirds of the directors then still in office who were either directors at
the beginning of the period or who, in connection with their election or nomination, received the
foregoing two-thirds approval.

 

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8.7 Payment in Lieu of Health Coverage. Notwithstanding any other provision of this
Agreement, in the event of the termination of the Employment Term by K-Tron without Cause under
Section 8.5 hereof or by the Employee for Good Reason under Section 8.6 hereof, if the Employee
executes and does not revoke a written Release, K-Tron shall pay the Employee a lump sum cash
payment equal to the cost that would be incurred by the Employee to continue medical and other
health care benefits for the period following the effective date of the Employee’s termination of
employment through the first anniversary of the effective date of the Employee’s termination of
employment, less the cost paid by active K-Tron employees for comparable coverage. The lump sum
payment shall be paid within 30 days after the effective date of the Employee’s date of termination
of employment. The cost of medical and other health care benefits shall be calculated pursuant to
the cost sharing arrangement relating to medical and other health care benefits in effect between
K-Tron and the Employee immediately before the effective date of the Employee’s termination of
employment. K-Tron shall also pay to the Employee an amount equal to the estimated federal, state
and local income and FICA taxes on the amount paid to the Employee under this Section 8.7, on the
same payment date as the lump sum payment described above.

9. Survival. Notwithstanding the termination of the Employment Term for any reason
whatsoever, the obligations of the Employee under Sections 3, 4, 5 and 6 hereof shall survive and
remain in full force and effect for the periods therein provided, and the provisions for equitable
relief found in Section 7 hereof shall continue in force.

10. Mitigation. The Employee shall not be required to mitigate the amount of any
payment or benefit provided for in this Agreement by seeking other employment or otherwise, and
there shall be no offset against amounts due the Employee under this Agreement on account of any
remuneration attributable to any subsequent or other employment that the Employee may have or
obtain.

11. Arbitration; Expenses. In the event of any dispute under the provisions of this
Agreement other than a dispute in which the primary relief sought is an equitable remedy such as an
injunction, the parties shall be required to have the dispute, controversy or claim settled by
arbitration in the City of Philadelphia, Pennsylvania in accordance with National Rules for the
Resolution of Employee Disputes then in effect of the American Arbitration Association (the
“AAA”) (or, if no such rules be in effect, then under the regular rules of the AAA), before
a panel of three arbitrators, the first of whom shall be selected by K-Tron, the second of whom
shall be selected by the Employee, and the third of whom shall be selected by the other two
arbitrators. Any award entered by the arbitrators shall be final, binding and nonappealable
(except as provided by applicable statutory law), and judgment may be entered thereon by either
party in accordance with applicable law in any court of competent jurisdiction. This arbitration
provision shall be specifically enforceable. The arbitrators shall have no authority to modify any
provision of this Agreement or to award a remedy for a dispute involving this Agreement other than
a benefit specifically provided under or by virtue of the Agreement. If the Employee prevails on
any material issue which is the subject of such arbitration or lawsuit, K-Tron shall be responsible
for all of the fees of the AAA and the arbitrators and any expenses relating to the conduct of the
arbitration (including K-Tron’s and the Employee’s reasonable attorneys’ fees and expenses).
Otherwise, each party shall be responsible for its or his own expenses relating to the conduct of
the arbitration (including reasonable attorneys’ fees and expenses) and shall share the fees of the
AAA and the arbitrators.

 

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12. Withholding. K-Tron or the member of the K-Tron Group employing the Employee may
withhold from any payments under this Agreement all federal, state and local taxes as K-Tron or
such member is required to withhold pursuant to any law or governmental rule or regulation. Except
as otherwise specifically provided herein, the Employee shall bear all expense of and be solely
responsible for, all federal, state and local taxes due with respect to any payment received under
this Agreement.

13. Notices. All notices and other communications hereunder shall be in writing and
deemed to have been given when hand delivered, in person or by a recognized courier or delivery
service, or when mailed by registered or certified mail, return receipt requested, as follows
(provided that notice of change of address shall be deemed given only when received):

If to K-Tron, to:

K-Tron International, Inc.

Routes 55 and 553

Pitman, NJ 08071

Attention: Chief Executive Officer

If to the Employee, to:

Kevin C. Bowen

103 Cromwell Drive

Mullica Hill, NJ 08062

or to such other name or address as any designated recipient shall specify by notice to the other
designated recipient in the manner specified in this Section 13. Any communication delivered in
another manner shall be deemed given when actually received by the intended recipient.

14. Governing Law. This Agreement shall be governed by and interpreted under the laws
of the State of New Jersey, without giving effect to any conflict of laws provisions.

15. Contents of Agreement; Amendment and Assignment.

15.1 This Agreement sets forth the entire understanding of the parties with respect to the
subject matter hereof, supersedes any prior employment agreement between the parties (including
without limitation, the Existing Agreement) and shall not be changed, modified or terminated except
upon written amendment executed by a duly authorized officer of K-Tron and the Employee.

15.2 Employee acknowledges that from time to time, K-Tron and other members of the K-Tron
Group may establish, maintain and distribute employee manuals or handbooks or personnel policy
manuals, and officers or other representatives of K-Tron or other members of the K-Tron Group may
make written or oral statements relating to personnel policies and procedures. Such manuals,
handbooks and statements are intended only for general guidance. No policies, procedures or
statements of any nature by or on behalf of any member of the K-Tron Group (whether written or
oral, and whether or not contained in any employee manual or handbook or personnel policy manual),
and no acts or practices of any nature, shall be construed to modify this Agreement.

 

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15.3 All of the provisions of this Agreement shall be binding upon and inure to the benefit of
and be enforceable by the respective heirs, executors, administrators, personal representatives,
successors and assigns of the parties hereto, except that the duties and responsibilities of the
Employee hereunder are of a personal nature and shall not be assignable or delegable in whole or in
part by the Employee. K-Tron shall require any successor (whether direct or indirect, by purchase,
merger, consolidation, reorganization or otherwise) to all or substantially all of the business or
assets of K-Tron, by agreement in form and substance satisfactory to the Employee, expressly to
assume and agree to perform this Agreement in the same manner and to the same extent that K-Tron
would be required to perform if no such succession had taken place.

16. Severability. If any provision of this Agreement or the application thereof to
anyone or any circumstance is held invalid or unenforceable in any jurisdiction, the remainder of
this Agreement, and the application of such provision to such person or entity or such circumstance
in any other jurisdiction or to other persons, entities or circumstances in any jurisdiction, shall
not be affected thereby, and to this end the provisions of this Agreement are severable.

17. Remedies Cumulative; No Waiver. Except as expressly stated herein, no remedy
conferred upon any party by this Agreement is intended to be exclusive of any other remedy, and
each and every such remedy shall be cumulative and in addition to any other remedy given hereunder
or now or hereafter existing at law or in equity. No delay or omission by any party in exercising
any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver
thereof, and any such right, remedy or power may be exercised by such party from time to time and
as often as may be deemed expedient or necessary by such party in its or his sole discretion.

18. Beneficiaries/References. The Employee shall be entitled, to the extent permitted
under any applicable law, to select and change a beneficiary or beneficiaries to receive any
compensation or benefit payable under this Agreement following the Employee’s death by giving
K-Tron written notice thereof. In the event of the Employee’s death or a judicial determination of
the Employee’s incompetence, reference in this Agreement to the Employee shall be deemed, where
appropriate, to refer to the Employee’s beneficiary, estate or other legal representative.

19. Miscellaneous. The masculine pronoun whenever used shall include the feminine and
the singular shall be construed as the plural, where applicable. All section headings are for
convenience only. This Agreement may be executed in several counterparts, each of which shall be an
original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to
produce or account for any of the other counterparts.

 

11

 

20. Section 409A.

20.1 Section 409A Compliance. This Agreement is intended to comply with the
requirements of the “short-term deferral” exemption from section 409A of the Code or another
exemption and shall in all respects be administered in accordance with section 409A or an
exemption. Notwithstanding anything in this Agreement to the contrary, all payments upon
termination of employment under this Agreement may only be made upon a “separation from service” as
determined under section 409A. Each payment under this Agreement shall be treated as a separate
payment for purposes of section 409A. In no event may the Employee, directly or indirectly,
designate the calendar year of any payment to be made under this Agreement. All reimbursements and
in-kind benefits provided under this Agreement shall be made or provided in accordance with the
requirements of section 409A of the Code.

20.2 Payment Delay. Notwithstanding anything in this Agreement to the contrary, if
required by section 409A of the Code and if the Employee is a “specified employee” of a
publicly-traded corporation as determined under section 409A at the time of the Employee’s
separation from service, any payments under this Agreement that are required to be postponed
pursuant to section 409A shall be postponed for a period of six months after the Employee’s
separation from service with K-Tron or a member of the K-Tron Group (or a successor thereto), as
required by section 409A. The accumulated postponed amount, with interest as described below,
shall be paid in a lump sum payment within 10 days after the end of the six-month period. If the
Employee dies during the postponement period prior to the payment of the postponed amount, the
amounts withheld on account of section 409A, with interest, shall be paid to the personal
representative of the Employee’s estate within 60 days after the date of his death. If amounts are
postponed on account of section 409A, the postponed amounts will be credited with interest for the
postponement period at the annualized rate of 6%.

IN WITNESS WHEREOF, K-Tron and the Employee have executed this Agreement as of the date first
above written.

	 	 	 	 	 
	[Corporate Seal]

Attest:	 	K-TRON INTERNATIONAL, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	Mary E. Vaccara

	 	 	 	Edward B. Cloues, II
	As its Secretary

	 	 	 	As its Chairman and
	 

	 	 	 	Chief Executive Officer
	 
	 	 	 	 
	 

	 	EMPLOYEE
	 
	 	 	 	 
	 	 	 
	Witness	 	Kevin C. Bowen

 

12Exhibit 10.30

Exhibit 10.30

HILLENBRAND, INC. STOCK INCENTIVE PLAN

PERFORMANCE BASED UNIT AWARD AGREEMENT

This Performance Based Unit Award Agreement (this “Agreement”) is effective as of the       day
of                     , 20     , between Hillenbrand, Inc. (the “Company”) and                      (the “Employee”).
The Award of Performance Based Units made herein is a performance based award of restricted stock
units. The number of Units that will ultimately be earned under this Agreement, as well as the
number of shares of Common Stock that will be distributed in settling those earned Units, which
will not be determined until the end of the Measurement Period, will depend on the amount of
shareholder value created by the Company’s financial performance during the Measurement Period, as
compared to the expected amount of shareholder value to be created during the Measurement Period.

AWARD INFORMATION

	 	 	 
	Target Performance Based Unit Award

(100% achievement of performance target)

	 	
 _____ 

Performance Based Units
	Maximum Performance Based Unit Award

(150% or greater achievement of
performance target)

	 	
 _____ 

Performance Based Units
	Measurement Period (three fiscal years)

	 	October 1, 20_____ 

through September 30, 20_____ 

	Base Shareholder Value

(at the beginning of Measurement Period)

	 	$__ million
	Incremental Shareholder Value Expected

	 	$__ million
	Weighted Average Cost of Capital

	 	
 _____%

 

 

 

AWARD DETERMINATION

Award Formula

The number of Units that will be earned at the end of the Measurement Period is a function of
the amount of Incremental Shareholder Value Delivered over the Measurement Period as compared to
the Incremental Shareholder Value Expected to be created over the Measurement Period. Except as
otherwise provided below in the Terms and Conditions, at the end of the Measurement Period, the
Units earned will be the number of whole Units (rounded down) equal to the product of (a) the
number of Units comprising the Target Performance Based Unit Award, and (b) a multiplier, as
provided in the following table, based on the ratio, expressed as a percentage, of Incremental
Shareholder Value Delivered for the Measurement Period (as determined below) to the Incremental
Shareholder Value Expected for the Measurement Period:

	 	 	 
	Incremental Shareholder Value Delivered	 	 
	as Percentage of	 	 
	Incremental Shareholder Value Expected	 	Multiplier
	(rounded down to nearest whole percent)	 	(rounded down to two decimal places)
	Less than 50%

	 	zero (no Units earned)
	At least 50% but less than 80%

	 	.2 plus an additional .01 for each
full percentage point realized
above minimum for range
	At least 80% but less than 100%

	 	.5 plus an additional .025 for each
full percentage point realized
above minimum for range
	At least 100% but less than 110%

	 	1.0 plus an additional .025 for
each full percentage point realized
above minimum for range
	At least 110% but less than 150%

	 	1.25 plus an additional .00625 for
each full point realized above
minimum for range
	At least 150%

	 	1.5 (all Units earned)

Calculation of Incremental Shareholder Value Delivered

The amount of Incremental Shareholder Value Delivered during the Measurement Period is
calculated by subtracting the Base Shareholder Value from the Shareholder Value Delivered, and the
Shareholder Value Delivered is calculated by adding two components: the Net Operating Profit After
Tax (“NOPAT”) Component and the Cash Flows Component.

1. The NOPAT Component of Shareholder Value Delivered is the Company’s Adjusted NOPAT for the
last fiscal year of the Measurement Period, divided by the Weighted Average Cost of Capital.

2. The Cash Flows Component of Shareholder Value Delivered is the sum of the following:

(a) the Company’s Adjusted Cash Flows for the third fiscal year in the Measurement
Period;

(b) the Company’s Adjusted Cash Flows for the second fiscal year in the Measurement
Period, multiplied by the sum of 100 percent and the Weighted Average Cost of Capital; and

(c) the Company’s Adjusted Cash Flows for the first fiscal year in the Measurement
Period, multiplied by the square of the sum of 100 percent and the Weighted Average Cost of
Capital.

 

- 2 -

 

TERMS AND CONDITIONS

1. Grant of Performance Based Units. Pursuant to and subject to the terms and
conditions of the Hillenbrand, Inc. Stock Incentive Plan (as amended from time to time, the
“Plan”), the Company hereby awards to the Employee, who is an employee of the Company or one of its
Subsidiaries, the opportunity to earn the number of Performance Based Units that will
be determined at the end of the Measurement Period under the Award Determination section
above, up to but not exceeding the number of Performance Based Units specified above as the Maximum
Performance Based Unit Award (the “Units”). Each Unit represents the conditional right to receive
one share of the Company’s common stock, without par value (“Common Stock”). Upon settlement at
the end of the Measurement Period, the earned Units will be settled by the distribution to the
Employee of one share of Common Stock for each Unit being settled, plus that number of Dividend
Shares distributable with respect to the earned Units, as provided in Paragraphs 6 and 7 and
subject to withholding as provided in Paragraph 10.

2. Acceptance; Transfer Restrictions. The Employee hereby accepts the award of Units
described in this Agreement and agrees that the Units will be held by the Employee and the
Employee’s successors subject to (and will not be disposed of except in accordance with) all of the
restrictions, terms and conditions contained in this Agreement and the Plan. Except as otherwise
provided in this Agreement or the Plan, the Employee may not sell, assign, transfer, pledge or
otherwise dispose of or encumber any of the Units, any shares of Common Stock underlying the Units,
or any interest in the Units or underlying shares of Common Stock, until the Measurement Period
expires, at which time the Employee’s rights in the Units will be earned and settled to the extent
provided in this Agreement. Any purported sale, assignment, transfer, pledge or other disposition
or encumbrance in violation of this Agreement or the Plan will be void and of no effect.

3. Earning/Measurement Period. If the Employee remains employed by the Company or a
Subsidiary through the end of the Measurement Period, then at the end of the Measurement Period the
Units will become fully earned, to the extent determined under “Award Determination” above. If the
Employee does not remain employed through the end of the Measurement Period, the provisions of
Paragraph 8 below will apply in determining the number of Units, if any, that will become earned at
the end of the Measurement Period. All Units not earned at the end of the Measurement Period will
be forfeited, and the Employee will have no rights or interest in or to those forfeited Units.

4. Unfunded Obligations. The Company will reflect the Employee’s interests in the
Units and the underlying shares of Common Stock by means of bookkeeping entries on the financial
records of the Company, and this Agreement will not create in the Employee or any successors any
right to, or claim against any, specific assets of the Company or result in the creation of any
trust or escrow account for the Employee or any successors. With respect their interests under
this Agreement, the Employee and any successors will be general creditors of the Company.

5. Voting Rights. The Employee will not have any rights of a shareholder to vote the
shares of Common Stock underlying the Units until the Units are earned and settled after the end of
the Measurement Period. Once the Units are settled by distribution of shares of Common Stock, the
Employee will have all shareholder voting rights with respect to those shares of Common Stock.

 

- 3 -

 

6. Dividends and Other Distributions; Dividend Shares. The Employee will not have any
rights of a shareholder to receive dividends or other distributions with respect to the shares of
Common Stock underlying the Units until the Units are earned and settled after the end of the
Measurement Period. Once the Units are settled by distribution of shares of Common
Stock, the Employee will have all shareholder rights to dividends and other distributions with
respect to those shares of Common Stock. However, during the Measurement Period, and thereafter
until such time as the shares attributable to earned Units are distributed to the Employee, the
Company will, on its books and records, credit the Employee with the number of notional shares of
the Company’s Common Stock (“Dividend Shares”) that could have been purchased on each Common Stock
dividend payment date, at the then current Fair Market Value, with the dividends that would have
been payable on the number of shares underlying the Units and on the Dividend Shares previously
credited to the Employee under this Paragraph. At the time settlement is made with respect to the
earned Units pursuant to Paragraph 7, the Company will distribute to the Employee (in addition to
and in the same manner as the shares attributable to the earned Units) that number of shares of
Common Stock (rounded up to the nearest whole share) equal to the credited Dividend Shares
multiplied by a fraction, the numerator of which is the number of earned Units and the denominator
of which is the number of all Units (being the Maximum Performance Based Unit Award). Any
remaining Dividend Shares on the Company’s records shall be forfeited and the Employee shall have
no right thereto or interest therein.

7. Actions after Earning is Determined. As soon after the end of the Measurement
Period as is practicable, and in any event on or before the end of the calendar year during which
the Measurement Period ends, the Company will settle the earned Units by distributing to the
Employee one share of Common Stock for each Unit earned under this Agreement. To distribute those
shares of Common Stock, the Company will, in its discretion, either deliver to the Employee stock
certificates representing, or shall instruct the Company’s transfer agent to recognize in book
entry form that the Employee is the registered holder of, the number of shares of Common Stock
attributable to the earned Units as of the end of the Measurement Period, free from any
restrictions or other terms and conditions of this Agreement. At that same time, the Company shall
take such actions as it shall deem appropriate to cancel the forfeited Units and to cause them to
no longer be recognized as outstanding awards under the Plan. In addition, the Company will issue
to the Employee that number of shares of Common Stock equal to the Dividend Shares to which the
Employee is entitled under Paragraph 6. The Employee (or his or her successors) shall execute and
deliver such instruments and take such other actions as the Company shall reasonably request with
respect to the actions to be taken pursuant to this Paragraph.

8. Termination of Employment. If the Employee’s employment with the Company and/or a
Subsidiary terminates during the Measurement Period (a transfer of employment among the Company and
its Subsidiaries will not be treated as a termination of employment), then all or some portion of
the Units that would otherwise have become earned Units had the Employee remained employed
throughout the entire Measurement Period, if any (the “Full Period Units”), will be earned or be
forfeited as follows:

(a) if the Employee’s employment terminates due to death, Disability or Retirement,
then at the end of the Measurement Period the number of Units that then become earned Units
will be equal to the product (rounded down to the nearest whole Unit) of (i) the number of
Full Period Units, and (ii) a fraction, the numerator of which is the sum (to a maximum of
156) of 52 plus the number of full weeks in the Measurement Period during which the Employee
was employed by the Company or a Subsidiary, and the denominator of which is 156;

 

- 4 -

 

(b) if the Employee’s employment terminates due to involuntary termination without
Cause, then at the end of the Measurement Period the number of Units that then become earned
Units will be equal to the product (rounded down to the nearest whole Unit) of (i) the
number of Full Period Units, and (ii) a fraction, the numerator of which is the number of
full weeks in the Measurement Period during which the Employee was employed by the Company
or a Subsidiary, and the denominator of which is 156.

(c) if the Employee, at termination of employment, is a party to a written employment
agreement with the Company or a Subsidiary that provides for the voluntary termination of
employment by the Employee for Good Reason, and if the Employee terminates employment
voluntarily for Good Reason, then at the end of the Measurement Period the number of Units
that then become earned Units will be the same portion of the Full Period Units as if the
Employee’s employment had been involuntarily terminated without Cause, as determined under
subparagraph (b) of this Paragraph; and

(d) upon termination of the Employee’s employment for any reason other than those
described in subparagraph (a), (b), or (c) of this Paragraph, all of the Units will be
forfeited immediately upon the termination of the Employee’s employment.

9. Change in Control. Upon the occurrence of a Change in Control during the
Measurement Period, the number of Units that then become earned Units will be equal to the product
(rounded down to the nearest whole Unit) of (i) the number of Units equal to the Target Performance
Based Unit Award, and (ii) a fraction, the numerator of which is the number of full weeks in the
Measurement Period prior to the Change in Control, and the denominator of which is 156, and all
other Shares will be forfeited. If the Employee is a party to a Change in Control Agreement with
the Company or a Subsidiary that, by its terms, covers outstanding awards of performance based
restricted stock units, this Agreement supersedes the terms of that Change in Control Agreement
with respect to the Units and the earning or forfeiture thereof.

10. Potential Repayment Obligation. [This Section 10 is applicable only if the
Employee holds the office of Vice President, or a higher office, with the Company or a Subsidiary
as of the effective date of this Agreement.] If the Company is required, because of fraud or
negligence, to restate its financial statements for any fiscal year(s) included in the Measurement
Period and such restatement occurs after the end of the Measurement Period but within three (3)
years after the end of the fiscal year being restated (as so restated, the financial statements
restated within such three (3) year period are referred to herein as the “Restated Financial
Statements,” and for clarification purposes any restatement of the Company’s financial statements
for a fiscal year that occurs more than three (3) years after the end of such fiscal year shall not
be relevant under, and shall not be considered to be a Restated Financial Statement for purposes
of, this Section), and if the number of shares of Common Stock (including shares earned as Dividend
Shares) earned by the Employee under this Agreement (shares that vested and were not forfeited as
calculated in accordance with the Company’s financial statements prior to the restatement thereof,
being referred to herein as the “Previously Earned Shares”) is greater than the number of shares of
Common Stock that would have been earned by the Employee hereunder if the number of shares earned
had been calculated in accordance with the Restated Financial Statements (the “Recalculated Earned
Shares,” with the excess of the number of Previously Earned Shares over the number of Recalculated
Earned Shares being referred to herein as the “Excess Issued Shares”), then the

 

- 5 -

 

Company may, in its
discretion, by written demand made upon the Employee at any time within three (3) years after the end of the
Measurement Period (the “Share Return Notification”), require the Employee to return to the Company
all or any lesser specified number of the Excess Issued Shares (with the number of shares to be
returned to the Company being referred to herein as the “Return Shares”). Within ninety (90) days
after the Share Return Notification is given to the Employee, the Employee shall either (a)
transfer to the Company, free and clear of all liens, security interests or other encumbrances,
that number of shares of the Company’s common stock equal to the Return Shares, or (b) pay to the
Company a sum equal to the Fair Market Value of the Return Shares as of the last day of the
Measurement Period, or (c) by a combination of shares transferred and cash paid to the Company
under clauses (a) and (b) above, effectively satisfy the obligation of the Employee to the Company
under this Section. If the Employee fails to satisfy his or her obligation to the Company under
this Section in full by the due date stated above, the Employee shall also pay to the Company
interest on the cash amount of such obligation (calculated pursuant to clause (b) above) from such
due date until paid in full at a rate of interest equal to the prevailing national “prime rate” of
interest on such due date plus an amount equal to the attorneys’ fees incurred by the Company in
collecting amounts due from the Employee under this Section. After the Return Shares (or the cash
equivalent) have been transferred back to the Company as required herein, the Company shall file
such federal and state tax returns or amended returns, amended W-2 forms, or other tax filings as
shall be required of it by applicable law or as reasonably requested by the Employee with respect
to all excess income and FICA taxes withheld and/or paid by the Company in connection with or
attributable to the Return Shares. The provisions of this Section shall not be applicable to Units
that are earned upon a Change in Control pursuant to Paragraph 9 of this Agreement.

11. Withholding. At the time of the settlement of Units by distribution of any shares
of Common Stock pursuant to Paragraph 7 of this Agreement, the Company has the right and power to
deduct or withhold, or require the Employee to remit to the Company, an amount sufficient to
satisfy all applicable tax withholding requirements with respect to such distributed shares. The
Company may permit or require the Employee to satisfy all or part of the tax withholding
obligations in connection with this Agreement by (a) having the Company withhold otherwise
distributable shares, or (b) delivering to the Company shares of Company Common Stock already owned
for a period of at least six (6) months (or such longer or shorter period as may be required to
avoid a charge to earnings for financial accounting purposes), in each case having a value equal to
the amount to be withheld, which shall not exceed the amount determined by the applicable minimum
statutory tax withholding rate (or such other rate as will not result in a negative accounting
impact). For these purposes, the value of the shares of Common Stock to be withheld or delivered
will be equal to the Fair Market Value as of the date that the taxes are required to be withheld.

12. Deferral of Distribution; Code Section 409A Compliance. The Employee may make a
one-time, irrevocable election to defer distribution of shares of Common Stock issued in settlement
of earned Units by completing and submitting a written election to the Company on such forms and
following such procedures as are required by the Company for effecting such elections. To be
effective, the election must be delivered to the Company by the date that is six months before the
last day of the Measurement Period and must specify an event or date for distribution of shares of
Common Stock from among the following: (a) separation of service, (b) Disability, (c) death, (d) a
fixed date, or (e) a Change in Control. The Employee’s right to defer, as well as all other
provisions of this Agreement, shall be interpreted and applied in a
manner consistent with the applicable standards for nonqualified deferred compensation plans
established by Internal Revenue Code Section 409A and its interpretive regulations and other
regulatory guidance. To the extent that any terms of this Agreement would subject the Employee to
gross income inclusion, interest, or additional tax pursuant to Code Section 409A, those terms are
to that extent superseded by, and shall be adjusted to the minimum extent necessary to satisfy, the
applicable Code Section 409A standards.

 

- 6 -

 

13. Notices. All notices and other communications required or permitted under this
Agreement shall be written and delivered personally or sent by registered or certified first-class
mail, postage prepaid and return receipt required, addressed as follows: if to the Company, to the
Company’s executive offices in Batesville, Indiana, and if to the Employee or his or her successor,
to the address last furnished by the Employee to the Company. The Company may, however, authorize
notice by any other means it deems desirable or efficient at a given time, such as notice by
facsimile or electronic mail.

14. No Employment Rights. Neither the Plan nor this Agreement confers upon the
Employee any right to continue in the employ or service of the Company or a Subsidiary or
interferes in any way with the right of the Company or a Subsidiary to terminate the Employee’s
employment or service at any time.

15. Plan Controlling. The terms and conditions set forth in this Agreement are
subject in all respects to the terms and conditions of the Plan, which are controlling. All
determinations and interpretations of the Company are binding and conclusive upon the Employee and
his or her legal representatives. The Employee agrees to be bound by the terms and provisions of
the Plan.

16. Defined Terms. For purposes of this Agreement, the following terms have the
meanings provided in this Paragraph. The terms included in the Award Information section of this
Agreement have the values specified in that section. All other terms used in this Agreement as
capitalized defined terms shall have the meanings ascribed to them in the Plan.

(a) “Adjusted NOPAT” is net operating profit after tax adjusted for the following items
(net of tax where applicable):

(i) Income, losses or impairments from specific financial instruments held by
the Company immediately following the spin-off of the Company in 2008 (i.e., auction
rate securities, equity limited partnerships, common stock, and Forethought note);

(ii) Interest income on corporate investments and interest expense on corporate
debt;

(iii) Costs related to the spin-off of the Company in 2008;

(iv) All professional fees, due diligence fees, expenses, and integration costs
related to a specific acquisition;

 

- 7 -

 

(v) Amortization expense of intangible long-lived assets where internally
generated costs are not customarily capitalized in the normal course of the business
(e.g.: customer lists, patents, etc.);

(vi) All adjustments made to net income related to changes in the fair value of
contingent earn-out awards;

(vii) External extraordinary, non-recurring, and material legal costs (e.g.:
antitrust litigation);

(viii) Restructuring charges and other items related to a restructuring plan
approved by the CEO; and

(ix) Changes in accounting pronouncements in United States GAAP or applicable
international standards that cause an inconsistency in computation as originally
designed.

(b) “Adjusted Cash Flows” means, with respect to each fiscal year in the Measurement
Period, the Company’s net cash provided by operating activities (whether positive or
negative) less its capital expenditures net of proceeds on the disposal of property, all as
shown on its audited financial statements for the fiscal year, as adjusted (net of tax where
applicable) to exclude the effects of the following items:

(i) Cash receipts or disbursements from financial instruments held by the
corporation immediately following the spin-off of the Company in 2008 (i.e., auction
rate securities, limited partnerships, and Forethought note);

(ii) Interest income on corporate investments and interest expense on corporate
debt;

(iii) Disbursements related to the spin-off of the Company in 2008;

(iv) External extraordinary, non-recurring, and material legal disbursements
(e.g., antitrust litigation);

(v) Changes in accounting pronouncements in United States GAAP or applicable
international standards that cause an inconsistency in computation as originally
designed; and

(vi) The cost of acquisitions, including all professional fees, due diligence
fees, expenses, and integration costs, amortized over a 36 month period beginning
the month after closing (payment of contingent earnouts (when made) shall be treated
as a component of the purchase price payment subject to a separate 36 month
amortization period at that time).

 

- 8 -

 

(c) “Cause” means:

(i) if the Employee is a party to a written employment agreement with the
Company or a Subsidiary that defines “cause” or a comparable term, the definition in
that employment agreement, and

(ii) if not, the Company’s good faith determination that the Employee has:

(1) failed or refused to comply fully and timely with any reasonable
instruction or order of the Company or applicable Subsidiary, provided that
such noncompliance is not based primarily on the Employee’s compliance with
applicable legal or ethical standards;

(2) 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 to cause the Company or a Subsidiary or any of their respective
officers or directors embarrassment or ridicule;

(3) violated any applicable Company or Subsidiary policy or procedure,
including the Company’s Code of Ethical Business Conduct; or

(4) engaged in any act that is contrary to the best interests of or
would expose the Company, a Subsidiary, their related businesses, or any of
their respective officers or directors to probable civil or criminal
liability, excluding the Employee’s actions in accordance with applicable
legal and ethical standard.

(d) “Disability” means:

(i) if the Employee, at termination of employment, is a party to a written
employment agreement with the Company or a Subsidiary that defines “disability” or a
comparable term, the definition in such employment agreement, and

(ii) if not, the Company’s good faith determination that the Employee is
eligible (except for the waiting period) for permanent disability benefits under
Title II of the Federal Social Security Act.

(e) “Good Reason” means, if the Employee, at termination of employment, is a party to a
written employment agreement with the Company or a Subsidiary, the definition given to that
term or a comparable term in that agreement, if any.

(f) “Retirement” means termination of employment after having:

(i) completed at least five years of service in the aggregate with the Company,
Hill-Rom Holdings, Inc. (formerly known as Hillenbrand Industries, Inc.), or any
Subsidiaries of either of them, and

(ii) reached age fifty-five (55).

 

- 9 -

 

IN WITNESS WHEREOF the Company and the Employee have executed this Agreement as of the date
first above written.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[EMPLOYEE SIGNATURE]	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	 	 	HILLENBRAND, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 

	 	 
	 

	 	 	Print Name: 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	Title:	 	 	 
	 

	 	 	 	 

	 	 

 

- 10 -

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