Document:

Exhibit 10.6

 

CDRV INVESTORS, INC. 

STOCK INCENTIVE PLAN

 

Article I

Purpose

 

CDRV
Investors, Inc. has established this stock incentive plan to foster and promote
its long-term financial success. 
Capitalized terms have the meaning given in Article XI.

 

Article II

Powers of the Board

 

Section 2.1                            Power
to Grant Awards.  The Board shall
select Employees to participate in the Plan. 
The Board shall also determine from time to time whether, and the terms
under which, Eligible Directors (or classes or categories of Eligible
Directors) may receive Director Share Awards. 
The Board shall determine the terms of each Award, consistent with the
Plan.

 

Section 2.2                            Administration.  The Board shall be responsible for the
administration of the Plan.  The Board
may prescribe, amend and rescind rules and regulations relating to the
administration of the Plan, provide for conditions and assurances it deems
necessary or advisable to protect the interests of the Company and make all
other determinations necessary or advisable for the administration and
interpretation of the Plan.  Any
authority exercised by the Board under the Plan shall be exercised by the Board
in its sole discretion.  Determinations,
interpretations or other actions made or taken by the Board under the Plan shall
be final, binding and conclusive for all purposes and upon all persons.

 

Section 2.3                            Delegation
by the Board.  All of the powers,
duties and responsibilities of the Board specified in this Plan may be
exercised and performed by any duly constituted committee thereof to the extent
authorized by the Board to exercise and perform such powers, duties and
responsibilities, and any determination, interpretation or other action taken
by such committee shall have the same effect hereunder as if made or taken by
the Board.

 

 

Article III

Shares Subject to Plan

 

Section 3.1                            Number.  The maximum number of shares of Common Stock
that may be issued under the Plan or be subject to Awards may not exceed
1,300,000 shares, provided that immediately following the initial
offering and grant of Awards hereunder such number shall automatically be
reduced by (x) the number of shares of Common Stock covered by Awards
offered but not granted under the Plan in the initial offering and grant of
Awards hereunder minus (y) 50,000 shares.  The shares of Common Stock to be delivered
under the Plan may consist, in whole or in part, of treasury Common Stock or
authorized but unissued Common Stock that is not reserved for any other
purpose.

 

Section 3.2                            Canceled,
Terminated or Forfeited Awards.  If
any Award or portion thereof is for any reason forfeited, canceled or otherwise
terminated without exercise, the shares of Common Stock subject to such Award
or portion thereof shall again be available for grant under the Plan.

 

Section 3.3                            Adjustment
in Capitalization.  The number of
shares of Common Stock available for issuance under the Plan and the number,
class, exercise price or other terms of any outstanding Award may be adjusted
by the Board if it shall deem such an adjustment necessary or appropriate to
reflect any Common Stock dividend, stock split or share combination or any
recapitalization, merger, consolidation, exchange of shares, liquidation or
dissolution of the Company or other similar transaction affecting the Common
Stock.

 

Article IV

Stock Purchase

 

Section 4.1                            Awards
and Administration.  The Board may
offer and sell shares of Common Stock to Participants at such time or times as
it shall determine, the terms of which shall be set forth in a Subscription
Agreement.

 

Section 4.2                            Minimum
Purchase Price.  Unless otherwise
determined by the Board, the purchase price for any shares of Common Stock to
be offered and sold pursuant to this Article IV shall not be less than the Fair
Market Value on the Grant Date.

 

Section 4.3                            Payment.  Unless otherwise determined by the Board,
the purchase price with respect to shares of Common Stock offered and sold
pursuant to this Article IV shall be paid in cash or other readily available
funds

 

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simultaneously
with the closing of the purchase of such Common Stock.  The Board may authorize the Company or one
or more of its Subsidiaries to guarantee indebtedness incurred by a Participant
in connection with a purchase of shares pursuant to this Article IV, on such
terms as the Board shall determine.

 

Article V

Terms of Options

 

Section 5.1                            Grant
of Options.  The Board may grant
Options to Participants at such time or times as it shall determine.  Options granted pursuant to the Plan will
not be “incentive stock options” as defined in the Code unless otherwise
determined by the Board.  Each Option
granted to a Participant shall be evidenced by an Option Agreement that shall
specify the number of shares of Common Stock that may be purchased pursuant to
such Option, the exercise price at which a share of Common Stock may be
purchased pursuant to such Option, the duration of such Option (not to exceed
the tenth anniversary of the Grant Date), and such other terms as the Board
shall determine.

 

Section 5.2                            Exercise
Price.  The exercise price per share
of Common Stock to be purchased upon exercise of an Option shall not be less
than the Fair Market Value on the Grant Date.

 

Section 5.3                            Vesting
and Exercise of Options.  Options
shall become vested or exercisable in accordance with the vesting schedule or
upon the attainment of such performance criteria as shall be specified by the
Board on or before the Grant Date. 
Unless otherwise determined by the Board or before on the Grant Date,
one-fifth of the Options shall vest and become exercisable on each of the
first, second, third, fourth and fifth anniversaries of the Grant Date.  The Board may accelerate the vesting or
exercisability of any Option, all Options or any class of Options at any time
and from time to time.

 

Section 5.4                            Payment.  The Board shall establish procedures
governing the exercise of Options, which procedures shall generally require
that prior written notice of exercise be given and that the exercise price
(together with any required withholding taxes or other similar taxes, charges
or fees) be paid in full in cash, cash equivalents or other readily-available
funds at the time of exercise. 
Notwithstanding the foregoing, on such terms as may be the Board may
establish from time to time following a Public Offering (i) the Board
may permit a Participant to tender shares of Common Stock such Participant has
owned for all or a portion of the applicable exercise price or minimum required
withholding taxes and (ii) the Board may authorize the Company to
establish a broker-assisted

 

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exercise
program.  In connection with any Option
exercise, the Company may require the Participant to furnish or execute such
other documents as it shall reasonably deem necessary to (a) evidence
such exercise, (b) determine whether registration is then required under
the U.S. federal securities laws or similar non-U.S. laws or (c) comply
with or satisfy the requirements of the U.S. federal securities laws,
applicable state or non-U.S. securities laws or any other law.  As a condition to the exercise of any Option
before a Public Offering, a Participant shall enter into a Subscription
Agreement.

 

Article VI

Termination of Employment

 

Section 6.1                            Expiration
of Options Following Termination of Employment.  Unless otherwise determined by the Board before or after the
Grant Date, if a Participant’s employment with the Company and its Subsidiaries
terminates, such Participant’s Options shall be treated as follows:

 

(a)                        if such employment terminates
by reason of the Participant’s death or Disability (each, a “Special
Termination”), any Options held by the Participant shall immediately vest
in full;

 

(b)                       in the case of any termination
other than a Special Termination, any unvested Options shall terminate
effective as of such termination of employment;

 

(c)                        except in the case of a
termination for Cause, vested Options (including any options that vest pursuant
to Section 6.1(a) above) shall remain exercisable through the earliest of (i)
the normal expiration date, (ii) 60 days after the Participant’s
termination of employment (180 days in the case of a Special Termination or a
retirement at normal retirement age or later) and (iii) any cancellation
pursuant to Section 7.1; and

 

(d)                       in the case of a termination for
Cause, any and all Options held by such Participant (whether or not then vested
or exercisable) shall terminate immediately upon such termination of
employment.

 

Section 6.2                            Certain
Rights upon Termination of Employment Prior to a Public Offering.  Each Subscription Agreement and Option
Agreement shall provide that the Company and the CD&R Fund shall have
successive rights prior to a Public Offering to purchase all or any portion of
a Participant’s shares of Common Stock and vested Options upon any termination
of employment, at a

 

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purchase price per share equal
to the Fair Market as of the effective date of such termination of employment
(or, if the Participant’s employment qualifies as a termination for Cause, for
a purchase price per share equal to the lesser of (i) such Fair Market
Value and (ii) such Participant’s per share purchase price), minus
any applicable exercise price.  The
Board may provide in a Subscription Agreement that following a Participant’s
Special Termination, retirement at or after normal retirement age or
termination of employment by the Company or its Subsidiaries without Cause in
each case prior to a Public Offering, such Participant may require the Company
to repurchase all (but not less than all) of such Participant’s shares of
Common Stock (but excluding any shares acquired on exercise of an Option), at a
purchase price per share equal to the Fair Market Value on the date of the
Participant’s termination of employment, subject to the Company having the
ability to do so under the terms of its financing arrangements and under
Delaware law.

 

Article VII

Change in Control

 

Section 7.1                            Accelerated
Vesting and Payment.  Except as
otherwise provided in this Article VII, and unless otherwise provided in the
Award Agreement, upon a Change in Control each Option, whether vested or
unvested, shall be canceled in exchange for a payment in an amount equal to the
excess, if any, of the Change in Control Price over the exercise price for such
Option.

 

Section 7.2                            Alternative
Options.  No cancellation,
acceleration or other payment shall occur with respect to any Option if the
Board reasonably determines in good faith, prior to the occurrence of a Change
in Control, that such Option shall be honored or assumed, or new rights
substituted therefor following the Change in Control (such honored, assumed or
substituted award, an “Alternative Award”), provided that any
Alternative Award must:

 

(a)                        give the Participant who held
such Option rights and entitlements substantially equivalent to or better than
the rights and terms applicable under such Option, including, but not limited
to, an identical or better exercise and vesting schedule, identical or better
timing and methods of payment and, if the Alternative Award or the securities
underlying it are not publicly-traded, identical or better rights following a
termination of employment to require the Company or the acquiror in such Change
in Control to repurchase the Alternative Award or securities underlying such
Alternative Award; and

 

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(b)                       have terms such that if, within
two years following a Change in Control, a Participant’s employment is
involuntarily or constructively terminated or terminates as a result of his or
her death, Disability or retirement at or after normal retirement age, such
Alternative Award shall immediately vest in full and such Participant shall
receive a cash payment equal to the excess (if any) of the fair market value of
the stock subject to the Alternative Award on the date of surrender over the
price that such Participant would be required to pay to exercise such
Alternative Award or shall have an immediate right to exercise such Alternative
Award and receive shares that are then publicly-traded.

 

Section 7.3                            Limitation
of Benefits.  If, whether as a
result of accelerated vesting, the grant of an Alternative Award or otherwise,
a Participant would receive any payment, deemed payment or other benefit as a
result of the operation of Section 7.1 or Section 7.2 that, together with any
other payment, deemed payment or other benefit a Participant may receive under
any other plan, program, policy or arrangement, would constitute an “excess
parachute payment” under section 280G of the Code, then, notwithstanding
anything in this Plan to the contrary, the payments, deemed payments or other
benefits such Participant would otherwise receive under this Section 7.1 or
Section 7.2 shall be reduced to the extent necessary to eliminate any such
excess parachute payment and such Participant shall have no further rights or
claims with respect thereto.  If the
preceding sentence would result in a reduction of the payments, deemed payments
or other benefits a Participant would otherwise receive in more than an
immaterial amount, the Company will use its commercially reasonable best
efforts to seek the approval of the Company’s shareholders in the manner
provided for in section 280G(b)(5) of the Code and the regulations thereunder with
respect to such reduced payments or other benefits (if the Company is eligible
to do so), so that such payments would not be treated as “parachute payments”
for these purposes (and therefore would cease to be subject to reduction
pursuant to this Section 7.3).

 

Article VIII

Director Share Awards

 

The Board may
provide for the grant of Director Share Awards to Eligible Directors (or
categories or classes of Eligible Directors) on such terms as the Board shall
determine from time to time, including as part of the retainer or other fees
payable to an Eligible Director, or as part of an arrangement that permits the
deferral of payment of such fees, on a mandatory or elective basis, into the
right to receive shares of Common Stock and distributions thereon in the future
or a cash payment measured by reference to the value therof.

 

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Article IX

Authority to Vary Terms or Establish Local Jurisdiction Plans

 

The Board may
vary the terms of Awards under the Plan, or establish sub-plans under this Plan
to authorize the grant of awards that have additional or different terms or
features than those otherwise provided for in the Plan, if and to the extent
the Board determines necessary or appropriate to permit the grant of awards
that are best suited to further the purposes of the Plan and to comply with
applicable securities laws in a particular jurisdiction or provide terms
appropriately suited for Employees in such jurisdiction in light of the tax
laws of such jurisdiction while being as consistent as otherwise possible with
the terms of Awards under the Plan; provided that this Article IX shall
not be deemed to authorize any increase the number of shares of Common Stock
available for issuance under the Plan set forth in Section 3.1.

 

Article X

Amendment, Modification, and Termination of the Plan

 

The Board may
terminate or suspend the Plan at any time, and may amend or modify the Plan
from time to time.  No amendment,
modification, termination or suspension of the Plan shall in any manner
adversely affect any Award theretofore granted under the Plan without the
consent of the Participant holding such Award or the consent of a majority of
Participants holding similar Awards (such majority to be determined based on
the number of shares covered by such Awards). 
Shareholder approval of any such amendment, modification, termination or
suspension shall be obtained to the extent mandated by applicable law, or if
otherwise deemed appropriate by the Board.

 

Article XI

Definitions

 

Section 11.1                      Definitions.  Whenever used herein, the following terms
shall have the respective meanings set forth below:

 

“Affiliate” shall mean, with respect to any Person, any other
Person directly or indirectly controlling, controlled by or under common
control with such first Person; provided that a director, member of
management or other Employee of the Company or any of its Subsidiaries shall
not be deemed to be an Affiliate of the CD&R Fund.  For these purposes, “control” (including the
terms “controlled by” and “under common control

 

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with”) means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management policies of a Person by reason of ownership of voting
securities, by contract or otherwise.

 

“Alternative Award” has the meaning given in Section 7.2.

 

“Award” shall mean an Option, or Director Share Award or an
offer and sale of shares of Common Stock pursuant to Article IV, in each case
granted pursuant to the terms of the Plan.

 

“Award Agreement” means a Subscription Agreement, an Option
Agreement or any other agreement evidencing an Award.

 

“Board” means the Board of Directors of the Company.

 

“CD&R Fund” means The Clayton, Dubilier & Rice Private Equity
Fund VI Limited Partnership, a Cayman Islands limited partnership, and any
successor investment vehicle managed by Clayton, Dubilier & Rice, Inc., a
Delaware corporation.

 

“Cause” means, unless otherwise provided in the Award Agreement,
any of the following:  (i) the
Participant’s commission of a crime involving fraud, theft, false statements or
other similar acts or commission of any crime that is a felony (or a comparable
classification in a jurisdiction that does not use these terms); (ii)
the Participant’s engaging in any conduct that constitutes an employment
disqualification under applicable law; (iii) the Participant’s willful
or grossly negligent failure to perform his or her employment-related duties
for the Company and its Subsidiaries; (iv) the Participant’s material
violation of any Company policy as in effect from time to time; (v) the
Participant’s engaging in any act or making any statement that impairs,
impugns, denigrates, disparages or negatively reflects upon the name,
reputation or business interests of the Company or its Subsidiaries; (vi)
the Participant’s material breach of any Award Agreement, employment agreement,
or noncompetition, nondisclosure or nonsolicitation agreement to which the
Participant is a party or by which the Participant is bound or (vii) the
Participant’s engaging in any conduct injurious or detrimental to the Company
or its any of its Subsidiaries. The determination as to whether “Cause” has
occurred shall be made by the Board, which shall have the authority to waive
the consequences under the Plan of the existence or occurrence of any of the
events, acts or omissions constituting “Cause.”  A termination for Cause shall be deemed to include a
determination following a Participant’s termination of employment for any

 

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reason that the circumstances existing prior to such termination for
the Company or one of its Subsidiaries to have terminated such Participants
employment for Cause.

 

“Change in Control” means the first to occur of the following
events after the Effective Date:

 

(i)  the acquisition by any
person, entity or “group” (as defined in Section 13(d) of the Securities
Exchange Act of 1934, as amended) of 50% or more of the combined voting power
of the Company’s then outstanding voting securities, other than any such
acquisition by the Company, any of its Subsidiaries, any employee benefit plan
of the Company or any of its Subsidiaries, the CD&R Fund or any of its
co-investors in connection with the CD&R Fund’s investment in the Company,
or any Affiliates of the foregoing;

 

(ii)  the merger, consolidation
or other similar transaction involving the Company, as a result of which
persons who were stockholders of the Company immediately prior to such merger,
consolidation, or other similar transaction do not, immediately thereafter,
own, directly or indirectly, more than 50% of the combined voting power
entitled to vote generally in the election of directors of the merged or
consolidated company;

 

(iii)  within any 24-month
period, the persons who were directors of the Company at the beginning of such
period (the “Incumbent Directors”) shall cease to constitute at least a
majority of the Board, provided that any director elected or nominated
for election, to the Board, by a majority of the Incumbent Directors then still
in office shall be deemed to be an Incumbent Director for purposes of this
clause (iii); or

 

(iv)  the sale, transfer or
other disposition of all or substantially all of the assets of the Company to
one or more persons or entities that are not, immediately

 

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prior to such
sale, transfer or other disposition, Affiliates of  the Company.

 

Notwithstanding
the foregoing, a Public Offering shall not constitute a Change in Control.

 

“Change in Control Price” means the price per share of Common
Stock offered in conjunction with any transaction resulting in a Change in
Control.  If any part of the offered
price is payable other than in cash, the Change in Control price shall be
determined in good faith by the Board as constituted immediately prior to the
Change in Control.

 

“Code” means the United States Internal Revenue Code of 1986, as
amended, and any successor thereto.

 

“Common Stock” means the Common Stock, par value $.01 per share,
of the Company.

 

“Company” means CDRV Investors, Inc., a Delaware corporation,
and any successor thereto.

 

“Director Share Award” means an award pursuant to Article VIII
to an Eligible Director of Common Stock, a right to receive Common Stock or a
payment measured by reference thereto and distributions thereon.

 

“Disability” means, unless otherwise provided in an Award
Agreement, a Participant’s long-term disability within the meaning of the
long-term disability insurance plan or program of the Company or Subsidiary of
the Company then covering the Participant, or in the absence of such a plan or
program, as determined by the Board. 
The Board’s reasoned and good faith judgment of Disability shall be
final and shall be based on such competent medical evidence as shall be
presented to it by the Participant or by any physician or group of physicians
or other competent medical expert employed by the Participant or the Company to
advise the Board.

 

“Eligible Director” means a member of the Board other than an
employee or officer of the Company or any of its Subsidiaries.

 

“Employee” means any executive, officer or other employee of the
Company or any Subsidiary.

 

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“Fair Market Value” means, as of any date of determination prior
to a Public Offering, the per share fair market value on such date of a share
of Common Stock as determined in good faith by the Board.  In making a determination of Fair Market
Value, the Board shall give due consideration to such factors as it deems
appropriate, including, but not limited to, the earnings and other financial
and operating information of the Company in recent periods, the potential value
of the Company as a whole, the future prospects of the Company and the
industries in which it competes, the history and management of the Company, the
general condition of the securities markets, the fair market value of
securities of companies engaged in businesses similar to those of the Company,
and any recent valuation of the Common Stock that shall have been performed by
an independent valuation firm (although nothing herein shall obligate the Board
to obtain any such independent valuation). 
Unless otherwise determined by the Board or provided in an Award Agreement,
any determination of Fair Market Value as of the end of any fiscal year shall
continue to apply throughout the next succeeding fiscal year.  The determination of Fair Market Value will
not give effect to any restrictions on transfer of the Common Stock or take
into account any control premium, but shall be determined taking into account
the fact that such shares would represent a minority interest in the Company
and are illiquid.  Initially, the Fair
Market Value shall be $100.00 per share, which is the price paid by the
CD&R Fund and its co-investors in connection with their initial investment
in the Company.  Following a Public
Offering, “Fair Market Value” shall mean, as of any date of determination, the mid-point
between the high and the low trading prices for such date per share of Common
Stock as reported on the principal stock exchange on which the shares of Common
Stock are then listed.

 

“Grant Date” means, with respect to any Award, the date as of
which such Award is granted pursuant to the Plan.

 

“Option” means the right granted pursuant to the Plan to
purchase one share of Common Stock.

 

“Option Agreement” means an agreement between the Company and a
Participant embodying the terms of any Options granted pursuant to the Plan and
in the form approved by the Board from time to time for such purpose.

 

“Participant” means any Employee or Eligible Director who is
granted an Award.

 

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“Person” means any natural person, firm, partnership, limited
liability company, association, corporation, company, trust, business trust,
governmental authority or other entity.

 

“Plan” means this CDRV Investors, Inc. Stock Incentive Plan.

 

“Public Offering” means the first day as of which (i)
sales of Common Stock are made to the public in the United States pursuant to
an underwritten public offering of the Common Stock led by one or more
underwriters at least one of which is an underwriter of nationally recognized
standing or (ii) the Board has determined that shares of the Common
Stock otherwise have become publicly-traded for this purpose.

 

“Special Termination” has the meaning given in Section 6.1.

 

“Subscription Agreement” means a stock subscription agreement
between the Company and a Participant embodying the terms of any stock purchase
made pursuant to the Plan and in the form approved by the Board from time to
time for such purpose.

 

“Subsidiary” means any corporation limited liability company or
other entity, a majority of whose outstanding voting securities is owned,
directly or indirectly, by the Company.

 

Section 11.2                                Gender
and Number.  Except when otherwise
indicated by the context, words in the masculine gender used in the Plan shall
include the feminine gender, the singular shall include the plural, and the
plural shall include the singular.

 

Article XII

Miscellaneous Provisions

 

Section 12.1                                Nontransferability
of Awards.  Except as otherwise
provided herein or as the Board may permit on such terms as it shall determine,
no Awards granted under the Plan may be sold, transferred, pledged, assigned,
hedged, encumbered or otherwise alienated or hypothecated, other than by will
or by the laws of descent and distribution. 
All rights with respect to Awards granted to a Participant under the
Plan shall be exercisable during the Participant’s life-time by such
Participant only (or, in the event of the Participant’s Disability, such
Participant’s legal representative). 
Following a Participant’s death, all rights with respect to Awards that
were outstanding at the time of such Participant’s death and

 

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have not terminated shall be
exercised by his designated beneficiary or by his estate in the absence of a
designated beneficiary.

 

Section 12.2                                Tax
Withholding.  The Company or the
Subsidiary employing a Participant shall have the power to withhold, or to
require such Participant to remit to the Company or such Subsidiary, an amount
sufficient to satisfy all U.S. federal, state, local and any non-U.S.
withholding tax or other governmental tax, charge or fee requirements in
respect of any Award granted under the Plan.

 

Section 12.3                                Beneficiary
Designation.  Pursuant to such rules
and procedures as the Board may from time to time establish, a Participant may
name beneficiary or beneficiaries (who may be named contingently or
successively) by whom any right under the Plan is to be exercised in case of
such Participant’s death.  Each
designation will revoke all prior designations by the same Participant, shall
be in a form reasonably prescribed by the Board, and will be effective only
when filed by the Participant in writing with the Board during his lifetime.

 

Section 12.4                                Delivery
of Financial Statements to Participants. 
Each year the Company will provide the Company’s annual financial
statements to the Participants.

 

Section 12.5                                Limitation
on Number of Outstanding Options. 
At no time shall the total number of shares of Common Stock issuable
upon exercise of all outstanding Options and the total number of shares of
Common Stock provided for under any bonus or similar plan or agreement of the
Company exceed 30%. as calculated in accordance with the conditions and
exclusions of California Code of Regulations, Title 10, Ch. 3, Section
260.140.45, of the securities outstanding at the time the calculation is made.

 

Section 12.6                                No
Guarantee of Employment or Participation. 
Nothing in the Plan or in any agreement granted hereunder shall
interfere with or limit in any way the right of the Company or any Subsidiary
to terminate any Participant’s employment or retention at any time, or confer
upon any Participant any right to continue in the employ or retention of the
Company or any Subsidiary.  No Employee
or Eligible Director shall have a right to be selected as a Participant or, having
been so selected, to receive any Awards.

 

Section 12.7                                No
Limitation on Compensation; No Impact on Benefits.  Nothing in the Plan shall be construed to
limit the right of the Company or any Subsidiary to establish other plans or to
pay compensation to its Employees or Eligible Directors, in cash or property,
in a manner that is not expressly authorized under the Plan.  Except as may otherwise be specifically and
unequivocally stated

 

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under any employee benefit
plan, policy or program, no amount payable in respect of any Award shall be
treated as compensation for purposes of calculating a Participant’s rights
under any such plan, policy or program. 
The selection of an Employee as a Participant shall neither entitle such
Employee to, nor disqualify such Employee from, participation in any other
award or incentive plan.

 

Section 12.8                                Requirements
of Law.  The granting of Awards and
the issuance of shares of Common Stock pursuant to the Plan shall be subject to
all applicable laws, rules and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.  No Awards shall be granted under the Plan,
and no shares of Common Stock shall be issued under the Plan, if such grant or
issuance would result in a violation of applicable law, including U.S. federal
securities laws and any applicable state or non-U.S. securities laws.

 

Section 12.9                                Freedom
of Action.  Nothing in the Plan or
any Award Agreement evidencing an Award shall be construed as limiting or
preventing the Company or any Subsidiary from taking any action that it deems
appropriate or in its best interest (as determined in its sole and absolute
discretion) and no Participant (or person claiming by or through a Participant)
shall have any right relating to the diminishment in the value of any Award as
a result of any such action.

 

Section 12.10                          Unfunded
Plan; Plan Not Subject to ERISA. 
The plan is an unfunded plan and Participants shall have the status of
unsecured creditors of the Company.  The
Plan is not intended to be subject to the Employee Retirement Income and
Security Act of 1974, as amended.

 

Section 12.11                          Term
of Plan.  The Plan shall be
effective as of the date specified by the Board and shall continue in effect,
unless sooner terminated pursuant to Article X, until the tenth anniversary of
such date, the provisions of the Plan shall continue thereafter to govern all
outstanding Awards.

 

Section 12.12                          No
Voting Rights.  Except as otherwise
required by law, no Participant holding any Awards granted under the Plan shall
have any right in respect of such Awards to vote on any matter submitted to the
Company’s stockholders until such time as the shares of Common Stock underlying
such Awards have been issued.

 

Section 12.13                          Governing
Law.  The Plan, and all agreements
hereunder, shall be governed by and construed in accordance with the law of the
State of New York regardless of the application of rules of conflict of law
that would apply the

 

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laws of any other jurisdiction,
except to the extent that the corporate law of the State of Delaware
specifically and mandatorily applies.

 

 

Effective Date: May 27, 2004

 

15Exhibit 10.7

 

Employee Stock Subscription Agreement

 

This
Employee Stock Subscription Agreement, dated as of
[                    ],
between CDRV Investors, Inc., a Delaware corporation, and the Employee whose
name appears on the signature page hereof, is being entered into pursuant to
the CDRV Investors, Inc. Stock Incentive Plan. 
The meaning of each capitalized term may be found in Section 10.

 

The
Company and the Employee hereby agree as follows:

 

Section 1.                                           Purchase and Sale of Common Stock

 

(a)                                              In General.  Subject to all of the terms of
this Agreement, at the Closing the Employee shall purchase, and the Company
shall sell, the aggregate number of shares of Common Stock set forth on the
signature page hereof (the “Shares”), at a purchase price of $100.00 per
Share.

 

(b)                                             Condition to Sale. 
Notwithstanding anything in this Agreement to the contrary, the Company
shall have no obligation to sell any Common Stock to any person who is not an
employee of the Company or any of its Subsidiaries at the time that such Common
Stock is to be sold or who is a resident of a jurisdiction in which the sale of
Common Stock to him would constitute a violation of the securities, “blue sky”
or other laws of such jurisdiction.

 

Section 2.                                           The Closing

 

(a)                                              Time and Place.  The
Company shall determine the time and place of the closing of the purchase and
sale of the Shares (the “Closing”).

 

(b)                                             Delivery by the Employee.  At
the Closing, the Employee shall deliver to the Company the aggregate purchase
price for the Shares.

 

(c)                                              Delivery by the Company.  At
the Closing, the Company shall register the Shares in the Employee’s name.  Prior to a Public Offering, the Company will
not deliver share certificates to the Employee; instead, if the Company issues
the Shares in certificated form, certificates relating to the Shares shall be
held by the Secretary of the Company or his designee on behalf of the Employee.

 

 

Section 3.                                           Employee’s Representations and Warranties

 

(a)                                              Access to Information, Etc.  The
Employee represents, warrants and covenants as follows:

 

(i)                                     the Employee has carefully reviewed the
Offering Memorandum, dated as of May 27, 2004, each of its exhibits, appendices
and other attachments, each document incorporated by reference into the
Offering Memorandum, and the other materials furnished to the Employee in
connection with the offer and sale of the Shares pursuant to this Agreement;

 

(ii)                                  the Employee has had an adequate opportunity
to consider whether or not to purchase any of the shares of Common Stock
offered to the Employee, and to discuss such purchase with the Employee’s
legal, tax and financial advisors;

 

(iii)                               the Employee understands the terms and
conditions that apply to the Shares and the risks associated with an investment
in the Shares;

 

(iv)                              the Employee has a good understanding of the
English language;

 

(v)                                 the Employee is, and will be at the Closing,
an officer or employee of the Company or one of its Subsidiaries; and

 

(vi)                              the Employee is, and will be at the Closing,
a resident of the jurisdiction indicated as his or her address set forth on the
signature page of this Agreement.

 

(b)                                             Ability to Bear Risk.  The
Employee represents and warrants as follows:

 

(i)                                     the Employee understands that the rights of
first refusal and other transfer restrictions that apply to the Shares may
effectively preclude the transfer of any of the Shares prior to a Public
Offering;

 

(ii)                                  the financial situation of the Employee is
such that he or she can afford to bear the economic risk of holding the Shares
for an indefinite period;

 

2

 

(iii)                               the Employee can afford to suffer the
complete loss of his or her investment in the Shares; and

 

(iv)                              the Employee understands that the Company’s
Financing Agreements may restrict the ability of the Company to repurchase the
Shares pursuant to Section 5 and that the Company and its subsidiaries may
enter into or amend, refinance or enter into new Financing Agreements without
regard to the impact on the Company’s ability to repurchase the Shares.

 

(c)                                              Voluntary Purchase.  The
Employee represents and warrants that the Employee is purchasing the Shares
voluntarily.

 

(d)                                             Not Right to Awards.  The
Employee acknowledges and agrees that the sale of the Shares and the grant of
any options that are awarded to the Employee in connection with the purchase of
the Shares (i) are being made on an exceptional basis and are not
intended to be renewed or repeated, (ii) are entirely voluntary on the
part of the Company and its Subsidiaries and (iii) should not be
construed as creating any obligation on the part of the Company or any of its
Subsidiaries to offer any shares of stock or options in the future.

 

(e)                                              Investment Intention.  The
Employee represents and warrants that the Employee is acquiring the Shares solely
for his or her own account for investment and not on behalf of any other person
or with a view to, or for sale in connection with, any distribution of the
Shares.

 

(f)                                                Securities Law Matters.  The
Employee acknowledges and represents and warrants that the Employee understands
that:

 

(i)                                     the Shares have not been registered under the
Securities Act or any state or non-United States securities or “blue sky” laws;

 

(ii)                                  it is not anticipated that there will be any
public market for the Shares;

 

(iii)                               the Shares must be held indefinitely and the
Employee must continue to bear the economic risk of the investment in the
Shares unless the Shares are subsequently registered under applicable
securities and other laws or an exemption from registration is available;

 

(iv)                              the Company is under no obligation to
register the Shares or to make an exemption from registration available; and

 

3

 

(v)                                 a restrictive legend shall be placed on any
certificates representing the Shares that makes clear that the Shares are
subject to the restrictions on transferability set forth in this Agreement and
a notation shall be made in the appropriate records of the Company or any
transfer agent indicating that the Shares are subject to such restrictions.

 

Section 4.                                           Restriction on Transfer of Shares

 

(a)                                              In General.  Prior to a Public Offering,
the Employee shall not Transfer any of the Shares other than (i) upon
the Employee’s death by will or by the laws of descent and distribution or (ii)
in strict compliance with the terms of this Agreement.  Shares may only be Transferred in a manner
that complies with all applicable securities laws and, if the Company so
requests, prior to any attempted Transfer the Employee shall provide to the
Company at the Employee’s expense such information relating to the compliance
of such proposed Transfer with the terms of this Agreement and applicable
securities laws as the Company shall reasonably request, which may include an
opinion in form and substance reasonably satisfactory to the Company of counsel
regarding such securities law or other matters as the Company shall request
(such counsel to be reasonably satisfactory to the Company).

 

(b)                                             No Transfer That Would Result In Registration
Requirements.  Prior to a Public Offering, the Shares may
not be Transferred if such Transfer would result in the Company becoming
subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act (or other similar provision of non-U.S. law) or would increase the
risk that the Company would be subject to such reporting requirements as
determined by the Company in its sole and absolute discretion.  Any purported Transfer in violation of this
Section 4(b) shall be void ab initio.

 

Section 5.                                           Options Effective on Termination of
Employment Prior to a Public Offering

 

(a)                                              Rights of the Company and the Investor.  If
the Employee’s employment with the Company terminates for any reason prior to a
Public Offering, the Company may elect to purchase all or a portion of the
Shares by written notice to the Employee delivered on or before the 60th day
after the Determination Date (the “First Option Period”).  The Investor may elect to purchase all or any
portion of the Shares that the Company has not elected to purchase by written
notice to the Employee delivered at any time

 

4

 

on
or before the 80th day after the Determination Date (the “Second Option
Period”).

 

(b)                                             Limited Right of the Employee to Require the
Company to Repurchase Shares.  If the Employee’s employment with the Company
is terminated by the Employee upon Retirement or by reason of the Disability or
death of the Employee or is terminated by the Company without Cause, the
Employee may require the Company to purchase all (but not less than all) of the
Shares by written notice delivered to the Company within 30 days following the
expiration of the Second Option Period.

 

(c)                                              Purchase Price.  The
purchase price per Share pursuant to this Section 5 shall equal the Fair
Market Value as of the effective date of the Employee’s termination of
employment (the “Determination Date”), provided that if the
Employee’s employment is terminated by the Company for Cause, the purchase
price per Share shall equal the lesser of (i) the Fair Market
Value of such Share as of the Determination Date and (ii) the price at
which the Employee purchased such Share from the Company pursuant to this
Agreement (the “Purchase Price”).

 

(d)                                             Closing of Purchase; Payment of Purchase
Price.  Subject to Section 5(f), the closing of
a purchase pursuant to this Section 5 shall take place at the principal
office of the Company no later than the 90th day following the
Determination Date (or, in the case of a purchase pursuant to
Section 5(b), no later than 10 business days following the Company’s
receipt of written notice from the Employee pursuant to
Section 5(b)).  At the closing, (i)
the Company or the Investor, as the case may be, shall, subject to
Section 5(e), pay the Purchase Price to the Employee and (ii) the
Employee shall deliver to the Company such certificates or other instruments
representing the Shares so purchased, appropriately endorsed by the Employee or
directing that the shares be so transferred to the purchase thereof, as the
Company may reasonably require. 
Notwithstanding the foregoing, if the Determination Date occurs during
the first or last fiscal quarter of any fiscal year of the Company, the Company
or the Investor, as the case may be, may elect to pay the Purchase Price in two
installments, as follows:  (i) at
the closing the Company or the Investor, as the case may be, shall pay an
amount equal to at least 80% of the Fair Market Value of the Shares determined
on the basis of the Board’s most recent determination thereof (the “First
Installment Amount”) and (ii) no later than the fifteenth business
day following the Board’s next determination of the Fair Market Value, the
Company or the Investor, as the case may be, shall pay the excess, if any, of
the Purchase Price calculated using such subsequent determination of Fair
Market Value over the First

 

5

 

Installment
Amount or, if the First Installment Amount exceeds such Purchase Price, the
Company shall so notify the Employee, who shall promptly repay any such excess
to the Company or the Investor, as the case may be.

 

(e)                                              Application of the Purchase Price to Certain
Loans or Other Obligations.  The Company and the Investor shall be
entitled to apply any amounts otherwise payable pursuant to this Section 5
to discharge any indebtedness of the Employee to the Company or any of its
Subsidiaries or indebtedness that is guaranteed by the Company or any of its
Subsidiaries or to offset any such amounts against any other obligations of the
Employee to the Company or any of its Subsidiaries.

 

(f)                                                Certain Restrictions on Repurchases; Delay of
Repurchase.  Notwithstanding any other provision of this
Agreement, the Company shall not be permitted or obligated to make any payment
with respect to a repurchase any Shares from the Employee if (i) such
repurchase (or the payment of a dividend by a Subsidiary to the Company to fund
such repurchase) would result in a violation of the terms or provisions of, or
result in a default or an event of default under any guaranty, financing or
security agreement or document entered into by the Company or any Subsidiary
from time to time (the “Financing Agreements”), (ii) such
repurchase would violate any of the terms or provisions of the Certificate of
Incorporation of the Company or (iii) the Company has no funds legally
available to make such payment under the General Corporation Law of the State
of Delaware.  If payment with respect to
a repurchase by the Company otherwise permitted or required under this
Section 5 is prevented by the terms of the preceding sentence: (i)
the payment of the applicable Purchase Price shall be postponed and will take
place at the first opportunity thereafter when the Company has funds legally
available to make such payment and when such payment will not result in any
default, event of default or violation under any of the Financing Agreements or
in a violation of any term or provision of the Certificate of Incorporation of
the Company, (ii) such repurchase obligation shall rank against other similar
repurchase obligations with respect to shares of Common Stock according to
priority in time of the effective date of the termination of employment giving
rise to such repurchase (provided that any repurchase commitment arising
from Disability or death shall have priority over any other repurchase
obligation) and (iii) the Purchase Price (except in the case of a
termination for Cause) shall be increased by an amount equal to interest on
such Purchase Price for the period during which payment is delayed at a rate
equal to 7% per annum.

 

6

 

(g)                                             Right to Retain Shares.  If
the options of the Company and the Investor to purchase the Shares pursuant to
this Section 5 are not exercised with respect to all of the Shares, the
Employee shall be entitled to retain the remaining Shares, although those
Shares shall remain subject to all of the other provisions of this Agreement.

 

(h)                                             Notice of Termination; Etc. 
Prior to a Public Offering, the Company shall give prompt written notice
to the Investor of any termination of the Employee’s employment with the
Company and of the Company decision whether or not to purchase Shares pursuant
to Section 5(a).

 

(i)                                                 Public Offering.  The
provisions of this Section 5 shall terminate upon a Public Offering, provided
that such termination shall not affect the Company’s repurchase right following
a termination for Cause that was effective (or deemed to be effective) prior to
such Public Offering any payment obligation postponed pursuant to
Section 5(f).

 

Section 6.                                           “Tag-Along” Rights

 

(a)                                              Sale Notice.  At least 30 days before the
Investor consummates any sale of more than 80% of its shares of Common Stock to
a Third-Party Buyer, the Company will deliver a written notice (the “Sale
Notice”) to the Employee.  The Sale
Notice will disclose the material terms and conditions of the proposed sale or
transfer, including the number of shares of Common Stock that the prospective
transferee is willing to purchase, the proposed purchase price per share and
the intended consummation date of such sale.

 

(b)                                             Right to Participate.  The
Employee may elect to participate in the sale or other transfer described in
the Sale Notice by giving written notice to the Investor and the Company within
15 days after the Company has given the related Sale Notice to the
Employee.  If the Employee elects to
participate, the Employee will be entitled to sell in the contemplated
transaction, at the same price and on the same terms and conditions as set
forth in the Sale Notice, an amount of Shares equal to the product of (i)
the quotient determined by dividing (A) the percentage of Shares then
held by the Employee by (B) the aggregate percentage of shares of Common
Stock represented by the Shares then held by the Investor and all holders of
Common Stock electing to participate such sale and (ii) the number of
shares of Common Stock such transferee has agreed to purchase in the
contemplated transaction.

 

7

 

(c)                                              Certain Matters Relating to the Investor.  The
Company will use its commercially reasonable best efforts to cause the Investor
to conduct any sale that is within the scope of this Section 7 in a manner
consistent with this Section 7.  If
the Company is not able to do so or fails to give the Sale Notice to the
Employee as prescribed in this Section 7(a), the Employee’s sole remedy
shall be against the Company.

 

(d)                                             Expiration Upon a Public Offering.  The
provisions of this Section 6 shall terminate upon the consummation of a
Public Offering.

 

Section 7.                                           Drag-Along Rights

 

(a)                                              Drag-Along Notice.  If
the Investor intends to sell or otherwise Transfer, or enter into an agreement
to sell or otherwise Transfer, for cash or other consideration, of more than
20% of its shares of Common Stock to a Third-Party Buyer and the Investor
elects to exercise its rights under this Section 7, the Company shall
deliver written notice (a “Drag-Along Notice”) to the Employee, which
notice shall state (i) that the Investor wishes to exercise its rights
under this Section 7 with respect to such sale, (ii) the name and
address of the Third-Party Buyer, (iii) the per share amount and form of
consideration the Investor proposes to receive for its shares of Common Stock,
(iv) the material terms and conditions of payment of such consideration
and all other material terms and conditions of such sale, and (v) the
anticipated time and place of the closing of the purchase and sale (a “Drag-Along
Closing”).

 

(b)                                             Conditions to Drag-Along.  Upon
delivery of a Drag-Along Notice, the Employee shall have the obligation to sell
and transfer to the Third-Party Buyer at the Drag-Along Closing the percentage
of the Employee’s Shares equal to the percentage of the shares of Common Stock
owned by the Investor that are to be sold to the Third-Party Buyer (the “Applicable
Percentage”) on the same terms as the Investor, but only if the Investor
sells and transfers the Applicable Percentage of the Investor’s shares of
Common Stock to the Third-Party Buyer at the Drag-Along Closing.

 

(c)                                              Power of Attorney Custodian, Etc.  By
entering into this Agreement and purchasing the Shares, the Employee hereby
appoints the Investor and any Affiliates of the Investor so designated by the
Investor the Employee’s true and lawful attorney-in-fact and custodian, with
full power of substitution (the “Custodian”), and authorizes the
Custodian to take such actions as the Custodian may deem necessary or
appropriate to effect the sale and transfer of the Applicable Percentage of the
Employee’s Shares to

 

8

 

the
Third-Party Buyer, upon receipt of the purchase price therefor at the
Drag-Along Closing, free and clear of all security interests, liens, claims,
encumbrances, charges, options, restrictions on transfer, proxies and voting
and other agreements of whatever nature, and to take such other action as may
be necessary or appropriate in connection with such sale or transfer, including
consenting to any amendments, waivers, modifications or supplements to the
terms of the sale (provided that the Investor also so consents, and, to
the extent applicable, sells and transfers the Applicable Percentage of its
shares of Common Stock on the same terms as so amended, waived, modified or
supplemented) and instructs the Secretary of the Company (or other person
holding any certificates for the Shares) to deliver to the Custodian
certificates representing the Applicable Percentage of the Employee’s Shares,
together with all necessary duly-executed stock powers.  If so requested by the Investor or the
Company, the Employee will confirm the preceding sentence in writing in form
and substance reasonably satisfactory to the Investor promptly upon receipt of
a Drag-Along Notice (and in any event no later than 10 days after receipt of
the Drag-Along Notice).  Promptly after
the Drag-Along Closing, the Custodian shall give notice thereof to the Employee
and shall remit to the Employee the net proceeds of such sale (reduced by any
amount required to be held in escrow pursuant to the terms of the purchase and
sale agreement and any other expenses).

 

(d)                                             The Investor a Third-Party Beneficiary;
Remedies.  The Employee acknowledges and agrees that the
Investor is an intended third-party beneficiary of this Section 7, as if
it were a party to this Agreement directly. 
Following a breach or a threatened breach by the Employee of the
provisions of this Section 7, the Investor may obtain an injunction
granting it specific performance of the Employee’s obligations under this
Section 7.  Whether or not the
Investor obtains such an injunction, and whether or not the transaction with
respect to which the Drag-Along Notice relates is consummated, following such a
breach or threatened breach by the Employee the Company shall have the option to
purchase any or all of the Employee’s Shares at a purchase price per Share
equal to the lesser of the price at which the Employee purchased such Shares
from the Company or the per share consideration payable pursuant to the
Drag-Along Offer.  The preceding sentence
shall not limit the Company’s or the Investor’s right to recover damages (or
the amount thereof) from the Employee.

 

(e)                                              Expiration on a Public Market.  The
provisions of this Section 7 shall terminate and cease to have further
effect upon the establishment of the Public Market, provided that such
termination shall not affect any right to receive or seek damages or purchase
Shares pursuant to Section 7(d).

 

9

 

Section 8.                                           Rights of First Refusal

 

(a)                                              Notice.  At any time prior to a Public
Offering, except as otherwise expressly provided in this Agreement, the
Employee may not Transfer any shares other than pursuant to a Qualified Offer
and if the Employee desires to accept a Qualified Offer, the Employee shall
first give at least 60 days’ prior written notice to the Company and the
Investor:

 

(i)                                     designating the number of Shares proposed to
be Transferred (the “Offered Shares”);

 

(ii)                                  naming the prospective acquiror of such
Shares; and

 

(iii)                               specifying the price at (the “Offer Price”)
and terms upon which (the “Offer Terms”) the Employee desires to
Transfer such Shares.

 

(b)                                             Right of the Company. During the 30-day period following the
Company’s receipt of the Employee’s notice pursuant to Section 8(a) (the “First
Refusal Period”), the Company shall have the right to purchase from the
Employee all or any portion of the Offered Shares, at the Offer Price and on
the Offer Terms.  The Company shall use
its reasonable efforts to act as promptly as practicable following receipt of
the notice from the Employee to determine whether it shall elect to exercise
such right.

 

(c)                                              Right of the Investor.  If
the Company fails to exercise it’s right to purchase all of the Offered Shares
within the First Refusal Period, the Investor shall have the right to purchase
all or any portion remaining of the Offered Shares specified in such notice, at
the Offer Price and on the Offer Terms, at any time during the period beginning
on the earlier of (x) the end of the First Refusal Period and (y)
the date of receipt by the Investor of written notice that the Company has
elected not to exercise its rights under this Section 8(b) and ending 60
days after the Investor’s receipt of the Employee’s notice pursuant to
Section 8(a) (the “Second Refusal Period”).

 

(d)                                             Manner of Exercise.  The
rights provided hereunder shall be exercised by written notice to the Employee
given at any time during the applicable period. 
If such right is exercised, the Employee may not sell pursuant to the Qualified
Offer any of the Shares that the Company or the Investor have elected to
purchase and the Company or the Investor, as the case may be, shall deliver to
the Employee cash, check or other readily-available funds for the Offer Price,
against delivery of certificates or other instruments representing the Shares
so purchased, appropriately endorsed

 

10

 

by
the Employee, and free and clear of all security interests, liens, claims,
encumbrances, charges, etc.

 

(e)                                              Additional Requirements for Sale. 
Subject to Section 4(b) if neither the Company nor the Investor
shall have exercised its rights under this Section 8, then the Employee
may Transfer the Offered Shares to (but only to) the intended purchaser named in
his notice to the Company and the Investor at the Offer Price and on the Offer
Terms; provided that:

 

(i)                                     such Transfer must be consummated within 30
days following the expiration of the Second Refusal Period; and

 

(ii)                                  the intended purchaser must first agree in
writing in form and substance satisfactory to the Company to make and be bound
by the representations and warranties set forth in Section 3(b),
Section 3(e), Section 3(f) and to agree to and be bound by the
covenants and other restrictions set forth in this Agreement (including, but
not limited to, Section 4, Section 6, Section 7, Section 8
and Section 11) and such other covenants or restrictions as the Company
shall reasonably request (it being understood that the Employee shall not have
any of the benefits provided for in Section 5).

 

Section 9.                                           Holdback.  If the Company files a
registration statement under the Securities Act with respect to an underwritten
public offering of any shares of its capital stock, the Employee shall not
effect any public sale (including a sale under Rule 144 under the Securities
Act or other similar provision of applicable law) or distribution of any shares
of the Common Stock, other than as part of such underwritten public offering,
during the 20 days prior to and the 180 days after the effective date of such
registration statement.

 

Section 10.                                     Certain Definitions.

 

(a)                                              As used in this Agreement, the following
terms shall have the meanings set forth below:

 

“Affiliate” has the meaning given in the Stock Incentive Plan.

 

“Applicable Percentage” has the meaning given in
Section 7(b).

 

“Board” has the meaning given in the Stock Incentive Plan.

 

“Cause” has the meaning given in the Stock Incentive Plan.

 

“Closing” has the meaning given in Section 2(a).

 

11

 

“Common Stock” means the common stock, par value $.01 per share,
of the Company.

 

“Company” means CDRV Investors, Inc., a Delaware corporation, provided
that for purposes of determining the status of Employee’s employment with the
“Company,” such term shall include the Company and its Subsidiaries.

 

“Custodian” has the meaning given in Section 7(c).

 

“Determination Date” means the effective date of the Employee’s
termination of employment.

 

“Disability” has the meaning given in the Stock Incentive Plan.

 

“Drag-Along Closing” has the meaning given in Section 7(a).

 

“Drag-Along Notice” has the meaning given in Section 7(a).

 

“Employee” means the purchaser of the Shares whose name is set
forth on the signature page of this Agreement; provided that following
such person’s death, the “Employee” shall be deemed to include such person’s
beneficiary or estate and following such person’s Disability, the “Employee”
shall be deemed to include any legal representative of such person.

 

“Exchange Act” means the United States
Securities Exchange Act of 1934, as amended, or any successor statute, and the
rules and regulations thereunder that are in effect at the time, and any
reference to a particular section thereof shall include a reference to the
corresponding section, if any, of any such successor statute, and the rules and
regulations thereunder.

 

“Fair Market Value” has the meaning given in the Stock Incentive
Plan.

 

“Financing Agreements” has the meaning given in
Section 5(f).

 

“First Installment Amount” has the meaning given in
Section 5(d).

 

“First Option Period” has the meaning given in Section 5(a)

 

“First Refusal Period” has the meaning given in
Section 8(b).

 

12

 

“Investor” means the “CD&R Fund” as such term is defined in
the Stock Incentive Plan.

 

“Offer Price” has the meaning given in Section 8(a).

 

“Offer Terms” has the meaning given in Section 8(a).

 

“Offered Shares” has the meaning given in Section 8(a).

 

“Person” means any natural person, firm, partnership, limited
liability company, association, corporation, company, trust, business trust,
governmental authority or other entity.

 

“Public Market” shall be deemed to have been established at such
time as 30% of the Common Stock (on a fully diluted basis) has been sold to the
public pursuant to an effective registration statement under the Securities
Act, pursuant to Rule 144 or pursuant to a public offering outside the United
States.

 

“Public Offering” means an underwritten public offering of the
Common Stock led by at least one underwriter of nationally recognized standing.

 

“Purchase Price” has the meaning given in Section 5(c).

 

“Qualified Offer” means an offer to purchase Shares from a
single purchaser and which must be in writing and for cash or other
immediately-available funds, be irrevocable by its terms for at least 60 days
and be a bona fide offer as determined in good faith by the Board or the
Compensation Committee thereof.

 

“Retirement” means the Employee’s retirement from active service
on or after the Employee reaches normal retirement age.

 

“Rule 144” means Rule 144 under the Securities Act (or any
successor provision thereto).

 

“Sale Notice” has the meaning given in Section 6(a).

 

“Second Option Period” has the meaning given in
Section 5(a).

 

“Second Refusal Period” has the meaning given in
Section 8(c).

 

13

 

“Securities Act” means the United States Securities Act of 1933,
as amended, or any successor statute, and the rules and regulations thereunder
that are in effect at the time and any reference to a particular
section thereof shall include a reference to the corresponding section, if
any, of any such successor statute, and the rules and regulations thereunder.

 

“Shares” has the meaning given in Section 1(a).

 

“Subsidiary” has the meaning given in the Stock Incentive Plan.

 

“Third-Party Buyer” means any Person other than the Company or
any of its Subsidiaries, any employee benefit plan of the Company or any of its
Subsidiaries, the Investor or any of its co-investors, or any Affiliates of the
foregoing.

 

“Transfer” means any sale, assignment, transfer, pledge,
encumbrance, or other direct or indirect disposition (including a hedge or
other derivative transaction).

 

“Unforeseen Personal Hardship” means financial hardship arising
from (i) extraordinary medical expenses or other expenses directly
related to illness or disability of the Employee, a member of the Employee’s
immediate family or one of the Employee’s parents or (ii) payments
necessary or required to prevent the eviction of the Employee from the
Employee’s principal residence or foreclosure on the mortgage on that
residence.

 

Section 11.                                     Miscellaneous.

 

(a)                                              Authorization to Share Personal Data.  The
Employee authorizes any Affiliate of the Company that employs the Employee or
that otherwise has or lawfully obtains personal data relating to the Employee
to divulge such personal data to the Company if and to the extent appropriate
in connection with this Agreement or the administration of the Stock Incentive
Plan.

 

(b)                                             Unforeseen Personal Hardship.  If
the Employee, prior to a Public Offering and still in the employment of the
Company, experiences Unforeseen Personal Hardship, the Board will carefully
consider any request by the Employee that the Company repurchase the Employee’s
Shares at a price determined in accordance with Section 5(c) hereof, but
the Company shall have no obligation to do so.

 

14

 

(c)                                              Notices.  All notices and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be deemed to have been given if delivered personally or
sent by certified or express mail, return receipt requested, postage prepaid,
or by any recognized international equivalent of such delivery, to the Company,
the Investor or the Employee, as the case may be, at the following addresses or
to such other address as the Company, the Investor or the Employee, as the case
may be, shall specify by notice to the others:

 

(i)                                     if to the Company, to it at:

 

c/o
VWR International, Inc.

1310 Goshen Parkway 

P.O. Box 2656

West Chester, Pennsylvania 19380

Attention:  General Counsel

Fax: 610-701-9896

 

(ii)                                  if to the Employee, to the Employee at his or
her most recent address as shown on the books and records of the Company or
Subsidiary employing the Employee.

 

(iii)                               if to the Investor, to it:

 

c/o
Clayton, Dubilier & Rice, Inc.

375 Park Avenue, 18th Floor

New York, New York 10152

Attention:  Richard Schnall 

Fax: (212) 407-5252

 

All
such notices and communications shall be deemed to have been received on the
date of delivery if delivered personally or on the third business day after the
mailing thereof.  Copies of any notice or
other communication given under this Agreement shall also be given to:

 

Clayton,
Dubilier & Rice, Inc.

375 Park Avenue, 18th Floor

New York, New York 10152

Fax:  (212) 407-5252

Attention:  Richard Schnall

 

15

 

and

 

Debevoise
& Plimpton LLP

919 Third Avenue 

New York, New York 10022 

Fax:  (212) 909-6836

Attention:  Franci J. Blassberg

 

(d)                                             Binding Effect; Benefits.  This
Agreement shall be binding upon and inure to the benefit of the parties to this
Agreement and their respective successors and assigns.  Except as otherwise provided herein with
respect to the Investor, nothing in this Agreement, express or implied, is
intended or shall be construed to give any person other than the parties to
this Agreement or their respective successors or assigns any legal or equitable
right, remedy or claim under or in respect of any agreement or any provision
contained herein.

 

(e)                                              Waiver; Amendment.

 

(i)                                     Waiver.  Any party hereto may by
written notice to the other parties (A) extend the time for the
performance of any of the obligations or other actions of the other parties
under this Agreement, (B) waive compliance with any of the conditions or
covenants of the other parties contained in this Agreement, and (C)
waive or modify performance of any of the obligations of the other parties
under this Agreement, provided that any waiver of the provisions of
Section 4 through and including Section 8 or this Section 11(e)
must be consented to in writing by the Investor.  Except as provided in the preceding sentence,
no action taken pursuant to this Agreement, including, but not limited to, any
investigation by or on behalf of any party, shall be deemed to constitute a
waiver by the party taking such action of compliance with any representations,
warranties, covenants or agreements contained herein.  The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a waiver
of any preceding or succeeding breach and no failure by a party to exercise any
right or privilege hereunder shall be deemed a waiver of such party’s rights or
privileges hereunder or shall be deemed a waiver of such party’s rights to
exercise the same at any subsequent time or times hereunder.

 

(ii)                                  Amendment.  This Agreement may be amended,
modified or supplemented only by a written instrument executed by the

 

16

 

Employee
and the Company, provided that the provisions of Section 4 through
Section 9 and this Section 11 may be amended by vote of a majority
(by number of shares of Common Stock) of the Employee’s who hold shares of
Common Stock purchased pursuant to a stock subscription agreement having
comparable provisions; provided, further, that any amendment adversely
affecting the rights of the Investor hereunder must be consented to by the
Investor.

 

(f)                                                Assignability. 
Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable by the Company or the
Employee without the prior written consent of the other parties, provided that
the Investor may assign from time to time all or any portion of its rights
under this Agreement, to one or more persons or other entities designated by
it.

 

(g)                                             Applicable Law.  This
Agreement shall be governed in all respects, including, but not limited to, as
to validity, interpretation and effect, by the internal laws of the State of
New York, without reference to principles of conflict of law that would require
application of the law of another jurisdiction.

 

(h)                                             Waiver of Jury Trial.  Each
party hereby waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in respect of any suit, action or
proceeding arising out of this Agreement or any transaction contemplated
hereby.  Each party (a) certifies
that no representative, agent or attorney of any other party has represented,
expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges
that it and the other parties have been induced to enter into the Agreement by,
among other things, the mutual waivers and certifications in this
Section 11(h).

 

(i)                                                 Section and Other Headings, etc.  The
section and other headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

 

(j)                                                 Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which together shall constitute one and the
same instrument.

 

17

 

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

 

 

	
   

  	
   

  	
  CDRV INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  THE EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  	
  «Name»

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  as
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address
  of the Employee:

  
	
   

  	
   

  
	
   

  	
  «Address»

  
	
   

  	
   

  
	
  Total
  Number of Shares

  	
   

  
	
  of
  Common Stock to be

  	
   

  
	
  Purchased:

  	
  «Shares»

  
	
   

  	
   

  
	
  Total
  Purchase

  	
   

  
	
  Price:

  	
  $«Share_Amount»

  
						

 

18

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