Document:

Exhibit 10.35

 

EMPLOYMENT
AGREEMENT

This EMPLOYMENT AGREEMENT
(this “Employment Agreement”)
is made this 9th day of May 2007, effective April 5, 2007 (the “Effective
Date”), by and between VICORP Restaurants, Inc., a Colorado corporation (the “Company”), and Kenneth Keymer (“Executive”).

WHEREAS, the
Company and its subsidiaries are engaged in the business of (i) operating
and managing family dining restaurants and enterprises and (ii) conducting such
other activities as are undertaken from time to time by the Company,
VI Acquisition Corp., a Delaware corporation (the “Parent”), and
each of their subsidiaries as a result of future acquisitions, or otherwise  (collectively, the “Business”);

WHEREAS, the
Company desires to employ Executive and Executive desires to be employed by the
Company as its Chief Executive Officer; and

WHEREAS, the Company and
Executive desire to enter into this Employment Agreement to evidence the terms
and conditions of such employment.

NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants and promises in this Employment
Agreement, the parties agree as follows:

1.             Employment.  The Company hereby agrees to employ Executive
as its Chief Executive Officer (“CEO”), and Executive hereby agrees to
accept such employment and agrees to act as CEO of the Company, all in
accordance with the terms and conditions of this Employment Agreement.  In addition to the foregoing, the Company
agrees that for so long as Executive continues to be the CEO, he shall remain a
member of the Company’s Board of Directors (the “Board”).  Executive hereby represents and warrants that
neither Executive’s entry into this Employment Agreement nor Executive’s
performance of Executive’s obligations hereunder will conflict with or result
in a breach of the terms, conditions or provisions of any other agreement or
obligation of any nature to which Executive is a party or by which Executive is
bound, including, without limitation, any development agreement,
non-competition agreement, non-solicitation agreement, or confidentiality
agreement entered into by Executive.

2.             Term of Employment and Automatic Renewal.  The term of Executive’s employment under this
Employment Agreement will commence on the date of this Employment Agreement and
will continue until the third (3rd) anniversary of the date of this
Employment Agreement (the “Initial Employment Period”).  The Initial Employment Period and any renewal
employment period (as defined herein) shall automatically be renewed and
extended on the same terms and conditions contained herein for consecutive
one-year periods (each, a “Renewal Employment Period”), unless not later
than sixty (60) days prior to the end of the Initial Employment Period or any
Renewal Employment Period, as the case may be, either party shall give written
notice to the other party of its election to terminate this Employment
Agreement. 
The Initial Employment Period and the Renewal Employment
Periods are hereinafter referred to as the “Employment Period.”  Notwithstanding anything to the contrary
contained herein, the Employment Period is subject to earlier termination
pursuant to Section 11 below.

 

3.             Position
and Responsibilities. 
Executive shall report to and be subject to the direction of the
Board.  Executive shall perform and
discharge such duties and responsibilities for the Company as the Board may
from time to time reasonably assign Executive. 
Executive understands and acknowledges that such duties shall be subject
to revision and modification from time to time by the Board.  During the Employment Period, Executive shall
devote Executive’s full business time, attention, skill and efforts to the
faithful performance of Executive’s duties herein, and shall perform the duties
and carry out the responsibilities assigned to Executive in a diligent,
trustworthy and businesslike manner for the purpose of advancing the
Company.  Executive acknowledges that
Executive’s duties and responsibilities will require Executive’s full-time
business efforts and agrees that during the Employment Period Executive will
not engage in any outside business activities that conflict with his
obligations under this Employment Agreement, provided, however, that the
Executive may serve on the board of directors of one other organization or
entity with the consent of the Board, which consent shall not be unreasonably
withheld.

4.             Compensation.

(a)           Base
Salary. During the Employment Period, the Company shall pay to
Executive a base salary at the rate of $462,500 per year (the “Base Salary”), payable at the
Company’s regular employee payroll intervals. 
Executive’s performance shall be reviewed annually and the Base Salary
may be increased at the Company’s sole discretion.  The Base Salary and all other compensation
paid to the Executive hereunder shall be subject to any payroll or other
deductions as may be required to be made pursuant to law, government order, or
by agreement with or consent of Executive.

(b)           Discretionary
Bonus.  During the
Employment Period, Executive shall be eligible to earn an annual bonus equal to
up to fifty (50%) of his Base Salary upon the attainment of certain performance
objectives to be set by, and in the sole discretion of, the Board or by the
Compensation Committee of the Board. 
Bonus amounts in excess of fifty percent (50%) of Executive’s Base
Salary may be paid to the Executive if the annual performance goals for a
particular year are exceeded, as determined in the sole discretion of the
Board.

(c)           Appreciation
Rights.  Upon a Sale of
the Company, Executive shall be entitled to a payment (the “Appreciation
Payment”) in an amount equal to a specified percentage of the Appreciation
Amount (as hereinafter defined). 
Executive shall vest in the Appreciation Payment ratably over five (5)
years, with the initial twenty percent (20%) vesting on the one year
anniversary of the date of this Employment Agreement and the remaining eighty
percent (80%) vesting in equal installments on each of the next four
anniversary dates thereafter, so long as Executive continues to be employed by
the Company on each such anniversary date; provided, however, that upon a Sale
of the Company while Executive is employed by the Company, the Appreciation
Payment shall become one hundred percent (100%) vested.  For purposes of this Agreement, “Sale of
the Company” shall have the meaning ascribed to it under the Management
Agreement previously executed by and between Executive and the Parent dated
September 1, 2005 (the “Management Agreement”) or, if such meaning does
not satisfy the
definition of “change in control event” as set forth under Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) or the guidance
and regulations promulgated thereunder, the meaning ascribed to it under Code
Section 409A.

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The “Appreciation Amount” shall be
equal to the excess, if any, of (i) the Net Equity Value over
(ii) Seventy Million Five Hundred Thousand Dollars ($70,500,000), plus all
amounts, if any, paid to the Company for equity issued after the Effective
Date.  In the event of a Sale of
the Company while Executive continues to be employed by the Company, the “Net
Equity Value” shall be equal to the proceeds, incorporating any working
capital adjustments, to be paid to the Parent or its shareholders in connection
with the closing of the Sale of the Company, plus cash on-hand, net of
(i) the Appreciation Payment, (ii) Indebtedness, and
(iii) transaction fees and other costs associated with the sale.  If Executive’s employment is terminated prior
to a Sale of the Company, all vesting of the Appreciation Payment shall cease
and the value of the Appreciation Amount shall be fixed as of the date
Executive’s employment terminates.  In
such instance, the “Net Equity Value” shall be determined as of the last
day of the fiscal period immediately proceeding the fiscal period in which
Executive’s employment terminates and shall be equal to the amount obtained
under the following formula: 1) six times 2) the Parent’s adjusted
trailing fiscal thirteen period earnings before interest, taxes, depreciation
and amortization, consistent with the calculation of this metric used by the
Company internally (including a run-rate for new stores at 50%), as determined
in accordance with GAAP, however, deducting cash rental payments associated
with leases that are currently treated as deemed landlord financing
liabilities, plus 3) cash on-hand, net of (i) the Appreciation Payment,
and (ii) Indebtedness,  plus or
minus any appropriate working capital adjustments to be determined by the Board
in good faith.

For purposes of
this Agreement, “Indebtedness” means all indebtedness of the Company,
Parent or their subsidiaries and affiliates for borrowed money, whether current
or funded, or secured or unsecured, including without limitation, (a) all
indebtedness of the Company, Parent or their subsidiaries and affiliates for
the deferred purchase price of property or services represented by a note,
earnout or contingent purchase payment, (b) all indebtedness of the Company,
Parent or their subsidiaries and affiliates created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by the Company,  Parent or their
subsidiaries and affiliates (even though the rights and remedies of the seller
or lender under such agreement in the event of default are limited to
repossession or sale of such property), (c) all indebtedness of the Company,
Parent or their subsidiaries and affiliates 
secured by a purchase money mortgage or other lien to secure all or part
of the purchase price of the property subject to such mortgage or lien, (d) all
obligations under leases which shall have been or must be, in accordance with
GAAP, recorded as capital leases in respect of which the Company, Parent or
their subsidiaries and affiliates are liable as lessee, however, excluding all
amounts recorded as deemed landlord financing liabilities, (e) any liability of
the Company, Parent or their subsidiaries and affiliates in respect of banker’s
acceptances or in respect of the face amount of letters of credit extended on
behalf of the Company, Parent or their subsidiaries and affiliates, (f) any
obligations (including, but not limited to, interest, fees, penalties and other
expenses) under any interest rate swap agreements or instruments of the
Company, Parent or their subsidiaries and affiliates, (g) all interest, fees
and other expenses owed with respect to the indebtedness referred to above, and
(h) all indebtedness referred to above which is directly or indirectly
guaranteed by the Company, Parent or their subsidiaries and affiliates or which
the Company, Parent or their subsidiaries and affiliates have agreed
(contingently or otherwise) to purchase or otherwise acquire or in respect of
which they have otherwise assured a creditor against loss.

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The specified percentage of the Appreciation
Amount Executive shall be entitled to receive (subject to the vesting
requirements described above) shall be based upon the total Appreciation Amount
pursuant to the following schedule:

	
  Percentage

  	
   

  	
  Appreciation
  Amount

  
	
   

  	
   

  	
   

  
	
  5%

  	
   

  	
  <$60,000,000

  
	
  6%

  	
   

  	
  >
  $60,000,000 but < $70,000,000

  
	
  7%

  	
   

  	
  >
  $70,000,000 but < $80,000,000

  
	
  8%

  	
   

  	
  >
  $80,000,000 but < $90,000,000

  
	
  9%

  	
   

  	
  >
  $90,000,000 but < $100,000,000

  
	
  10%

  	
   

  	
  >
  $100,000,000

  

 

By way of illustration, assuming the Executive is employed at the time
of a Sale of the Company, and the Appreciation Amount is $65,000,000, the total
Appreciation Payment shall be equal to $3,900,000 (6% x $65,000,000).  If the Executive’s employment ends prior to a
Sale of the Company, Executive is 80% vested in the Appreciation Payment at the
time of separation, and the Appreciation Amount at the time of separation is
$50,000,000, the total Appreciation Payment shall be equal to $2,000,000 (5% x
$50,000,000 x 80%).

Subject to the requirements of Code Section 409A and the limitations of
this subparagraph, and regardless of the date Executive’s employment with the
Company ceases, the vested Appreciation Payment, if any, shall be paid to
Executive (or his estate) at the same time and in the same form of consideration
as the purchase price in connection with the closing of the Sale of the Company
is paid to the Company or its shareholders, as applicable. If any portion of
the purchase price on such sale which is otherwise payable to the Company or
its shareholders is subject to an escrow arrangement or other form of holdback,
a proportionate share of the Appreciation Payment shall similarly be subject to
such escrow or holdback and shall only be paid as and when amounts are
subsequently released to the Company or its shareholders, as applicable.  The Appreciation Payment shall further be
conditioned upon the Employee’s execution of a release in a form acceptable to
the Company.  Notwithstanding
anything in this Section 4(c) to the contrary, upon a termination of Executive’s
employment by the Company for Due Cause (as hereinafter defined), the
Appreciation Payment shall be forfeited in its entirety.

(d)           Stock.  Executive will have the opportunity to enter
into an equity purchase agreement (the “Equity Purchase Agreement”) with
the Parent pursuant to which Executive may purchase certain shares of common
stock and preferred stock of Parent (collectively, the “Executive Stock”),
which shares of Executive Stock, if purchased, shall be subject to certain
repurchase and other obligations and restrictions set forth in a new management
agreement to be executed by and between Executive and Parent (the “New
Management Agreement”) and that certain stockholders agreement previously
entered into among Parent, the Investors (as defined in the Management
Agreement) and certain other shareholders of Parent and as previously entered
into by Executive via his execution of a joinder thereto (the “Stockholders
Agreement”).

5.             Benefit Plans.  During the Employment Period, Executive will
be entitled to receive traditional employee benefits comparable to those
provided to other senior executive

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officers of the
Company (subject to any applicable waiting periods, eligibility requirements,
or other restrictions), which benefits may include insurance (medical, dental,
life, disability), retirement plans, and profit sharing plans.

6.             Expenses.  The Company, in accordance with its policies
and practices as in effect from time to time, will pay or reimburse Executive
for all expenses reasonably incurred by Executive during the Employment Period
in connection with the performance of Executive’s duties under this Employment
Agreement, provided that Executive shall provide to the Company paid receipts
or other documentation acceptable to the Company and as required by the
Internal Revenue Service to qualify as ordinary and necessary business expenses
under the Internal Code.  In addition,
upon the delivery by Executive to the Company of a detailed description of such
expenses, the Company agrees to reimburse Executive for the following
reasonable relocation expenses actually incurred in connection with the
Executive’s relocation to the Denver, Colorado metropolitan area:

(i)            all
transfer fees and broker fees incurred in connection with the sale of Executive’s
current home in Atlanta, Georgia; and

(ii)           reasonable
moving expenses for the belongings of Executive incurred in connection with the
Executive’s return to Colorado.

7.             Vacation.  Executive shall be entitled to vacation at
the rate of four (4) weeks per year to be accrued and taken in accordance with
the Company’s vacation policy as in effect from time to time.

8.             Confidentiality, Inventions and Non-Solicitation
Agreement.  On the date
hereof, Executive shall execute a confidentiality, inventions and
non-solicitation agreement, in the form of Exhibit A attached hereto and made a part hereof (the “Confidentiality,
Inventions and Non-Solicitation Agreement”).

9.             Restrictive Covenants.

(a)           Executive’s Acknowledgment.  Executive acknowledges that: (i) Parent
and the Company are and will be engaged in the Business during the Employment
Period and thereafter; (ii) Parent and the Company are and will be
actively engaged in the Business throughout the world; (iii) Executive is
one of a limited number of persons who will be developing the Business;
(iv) Executive will occupy a position of trust and confidence with the
Company after the date of this Employment Agreement and during the Employment
Period Executive will continue to become familiar with Parent’s and the Company’s
and each of their subsidiaries’ and portfolio companies’ (collectively, the “Group”)
trade secrets and with other proprietary and confidential information
concerning the Group and its Business (and the other businesses of the Group);
(v) the agreements and covenants contained in this Section 9 are essential to protect the Group and the goodwill of
its business and are a condition precedent to the Company entering into this
Employment Agreement; (vi) Executive’s employment with the Company has
special, unique and extraordinary value to the Company and the Company would be
irreparably damaged if Executive were to provide services to any person or
entity in violation of the provisions of this Employment Agreement; and
(vii) Executive has means to support

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Executive and
Executive’s dependents other than by engaging in the Restricted Business (as
hereinafter defined), and the provisions of this Section 9 will not impair such ability.

(b)           Restrictions.  Executive will not, during the Restricted
Period (as defined below), anywhere in the United States, Canada, and/or any
other geographic areas in which the Company and/or any other member of the
Group conducts business at any time during the Employment Period (the “Restricted Territory”),
participate in the Restricted Business.  For purposes of this Agreement,
(i) the term “participate”
means to have any direct or indirect interest, whether as an officer, director,
employee, partner, member, manager, sole proprietor, agent, representative,
independent contractor, consultant, franchisor, franchisee, creditor, owner or
otherwise; provided,
however, that the term “participate” shall not include
ownership of less than one percent of a class of stock of a publicly-held
corporation which is traded on a national securities exchange or in the
over-the-counter market, so long as the Executive does not have any active
participation in the business or management of such entity; and (ii) the term “Restricted Business” means any enterprise, business or venture
anywhere within the Restricted Territory, which is engaged in or which proposes
to engage in the providing of family dining restaurants, or retail or
restaurant bakery operations, including but not limited to any entity or
entities directly or indirectly related to the following entities: Bob Evans’;
IHOP; Denny’s; Perkin’s; Marie Calendar; Mimi’s; and Cracker Barrel.

The term “Restricted
Period” means the period of time from
the date of this Employment Agreement until one (1) year after the termination
for any reason of Executive’s employment relationship with the Group or any
successor thereto (whether pursuant to a written agreement or otherwise,
including any Renewal Employment Period under this Employment Agreement).  The Restricted Period shall be extended for a
period equal to any time period that Executive is in violation of Section 9.

(c)           Scope/Severability.  The parties acknowledge that the business of
Parent and the Company is and will be international in scope and thus the
covenants in this Section 9
would be ineffective if the covenants were to be limited to a particular
geographic area.  If any court of
competent jurisdiction at any time deems the Restricted Period unreasonably
lengthy, or the Restricted Territory unreasonably extensive, or any of the
covenants set forth in this Section  9 not fully
enforceable, the other provisions of this Section 9, and this Employment Agreement in general, will
nevertheless stand and to the full extent consistent with law continue in full
force and effect, and it is the intention and desire of the parties that the
court treat any provisions of this Employment Agreement which are not fully
enforceable as having been modified to the extent deemed necessary by the court
to render them reasonable and enforceable and that the court enforce them to
such extent (for example, that the Restricted Period be deemed to be the
longest period permissible by law, but not in excess of the length provided for
in Section 9(b), and the
Restricted Territory be deemed to comprise the largest territory permissible by
law under the circumstances but not in excess of the territory provided for in Section 9(b)).

10.           Equitable
Remedies.  Executive
acknowledges and agrees that the agreements and covenants set forth in the  Confidentiality, Inventions and Non-Solicitation
Agreement and in Section 9 of this Employment Agreement are reasonable and
necessary for the protection of Parent’s and the Company’s business interests,
that irreparable injury will result to Parent and the Company if Executive
breaches any of the terms of said covenants, and that in the event of

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Executive’s actual
or threatened breach of any such covenants, Parent and the Company will have no
adequate remedy at law.  Executive
accordingly agrees that, in the event of any actual or threatened breach by
Executive of any of said covenants, Parent and the Company will be entitled to
immediate injunctive and other equitable relief, without bond and without the
necessity of showing actual monetary damages. 
Nothing in this Section 10
will be construed as prohibiting Parent or the Company from pursuing any other
remedies available to them for such breach or threatened breach, including the
recovery of any damages that they are able to prove.

11.           Termination.  Notwithstanding anything in Section 2 of this
Agreement to the contrary, Executive’s services shall terminate upon the first
to occur of the following events:

(a)           Death.  The Employment Period will terminate
immediately upon the death of Executive. 
If the Employment Period is terminated pursuant to this Section 11(a), the Company shall have
no further obligation to Executive (or his estate) except for salary, benefits
and the Appreciation Payment accrued through the date of termination.

(b)           Due
Cause.  The Company may
terminate the Employment Period immediately upon written notice to Executive
for Due Cause.  The following events will
be deemed to constitute “Due Cause”:

(i)                                     Executive’s
breach of any of Executive’s obligations under the Confidentiality, Inventions
and Non-Solicitation Agreement, this
Employment Agreement, the Equity Purchase Agreement, the Management Agreement
or the Stockholders Agreement; or

(ii)                                  Executive’s
neglect of, misconduct in connection with the performance of, or refusal to
perform Executive’s duties in accordance with Section 3 of this Employment Agreement, which, in the case of
neglect or refusal to perform, has not been cured to the Company’s good faith
satisfaction within thirty (30) days after Executive has been provided written
notice of the same; or

(iii)                               Executive’s
engagement in any conduct which injures the integrity, character or reputation
of the Company or which impugns Executive’s own integrity, character or
reputation so as to cause Executive to be unfit to act in the capacity of CEO
of the Company; or

(iv)                              the
Board’s good faith determination that Executive has committed an act or acts
constituting a felony, or other act involving dishonesty, disloyalty or fraud
against the Company.

If the Employment
Period is terminated pursuant to this Section
11(b), the Company shall have no further obligation to Executive except
for salary and benefits accrued through the date of termination.

(c)           Permanent
Disability.  The Company
may terminate the Employment Period upon the Permanent Disability (as defined
below) of the Executive.  For purposes of
this Employment Agreement, the term “Permanent Disability” shall mean
that Executive is unable to

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perform,
by reason of physical or mental incapacity, the essential functions of his
position for ninety (90) or more days in any one hundred twenty (120) day
period.  The Board shall determine,
according to the facts then available, whether and when a Permanent Disability
has occurred.  Upon such termination, the
Company shall have no further obligation to Executive (or his estate) except
for salary, benefits and the Appreciation Payment accrued through the date of
termination.

(d)           Termination
by the Company without Due Cause.  The Company may terminate the Employment
Period without Due Cause upon providing the Executive with written notice of
such termination.  If the Employment
Period is terminated pursuant to this Section
11(d), then Executive will be entitled to his salary, benefits and the
Appreciation Payment accrued through the date of termination and will also be
entitled to receive as severance pay the continuation of his Base Salary at the
annual rate then in effect for a period of twelve (12) months following the
termination of his employment (the “Severance Period”), payable in
accordance with the Company’s payroll policy from time to time in effect.  Upon a termination under this Section 11(d),
the Company may elect, within thirty (30) days of the termination of the
Employment Period, to extend the duration of the Restricted Period for up to an
additional twelve (12) month period by so notifying Executive.  If the Company elects to extend the duration
of the Restricted Period, the amount of severance pay shall be increased by
one-twelfth (1/12) of his Base Salary, at the annual rate then in effect, for
each month by which the Restricted Period is extended (the “Additional
Payment”).  If the Company does not
elect to extend the duration of the Restricted Period, the Executive shall not
be entitled to the Additional Payment and he or she shall continue to be bound
by the original terms of the Restricted Period. 
In addition, if the Executive elects COBRA continuation coverage, the
Company shall pay for such coverage through the Severance Period at the same
rate as it pays for health insurance coverage for its active employees (with
the Executive required to pay for any employee-paid portion of such
coverage).  Nothing herein provided,
however, shall be construed to extend the period of time over which such COBRA
continuation coverage otherwise may be provided to the Executive and/or his
dependents.  Notwithstanding the above,
Executive shall receive the amounts set forth in this Section 11(d) only if
Executive is not in material breach of any of the provisions of the
Confidentiality, Inventions and Non-Solicitation Agreement and Section 9 of
this Agreement, and has complied with Section 11(f) of this Employment
Agreement.  Notwithstanding anything
herein to the contrary, if Executive is a “specified employee” as such term is
defined under Section 409A of the Code and the regulations and guidance
promulgated thereunder, the payments described under this Section 11(d) shall
be delayed by a period of six (6) months following Executive’s termination of
employment so as not to subject the payments to any penalties and interest
under Section 409A of the Code.

(e)           Voluntary
Resignation by Executive. 
Executive may terminate the Employment Period at any time for any reason
upon thirty (30) days’ prior written notice.  
If the Employment Period is terminated pursuant to this Section 11(e), the Company shall have
no further obligation to Executive except for salary, benefits and the
Appreciation Payment accrued through the date of termination; provided, however,
that if Executive is terminating the Employment Period for Good Reason (as
defined below), then Executive will be entitled to receive the severance
benefits on the terms and subject to all of the conditions and rights as
described in Section 11(d).  The
following events will be deemed “Good Reason” for which Executive may
terminate the Employment Period and receive the severance payments as set forth
in Section 11(d):

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(i)                                     a
material diminution of the Executive’s responsibilities after written notice to
the Company and a thirty (30) day opportunity to cure; or

(ii)                                  any
material breach of this Employment Agreement on the part of the Company
(including, but not limited to, any decrease in the Base Salary without the
consent of the Executive, or relocation of Executive’s place of employment to a
location that is greater than fifty (50) miles from the Denver, Colorado
metropolitan area), after written notice to the Board, and a thirty (30) day
opportunity to cure; provided, however, that Executive is not in
material breach of any of the terms of this Employment Agreement.

A termination of employment
by the Executive for Good Reason shall be effected by giving the Company
written notice of the termination within thirty (30) days of the event
constituting Good Reason, setting forth in reasonable detail the specific
conduct of the Company that constitutes Good Reason and the specific provisions
of this Agreement on which the Executive relies.

(f)            General
Release.  The receipt of any payment as set
forth in Sections 11(d)-(e)
above shall be contingent upon Executive’s execution of an agreement acceptable
to the Company that (i) waives any rights the Executive may otherwise have
against the Company and its Affiliates, (ii) releases the Company and its
Affiliates from actions, suits, claims, proceedings and demands related to the
period of employment and/or the termination of employment, and
(iii) contains certain other obligations which shall be set forth at the
time of the termination.  For purposes of
this Employment Agreement, the term “Affiliates” means any individual,
corporation, partnership, association, joint-stock company, trust,
unincorporated association or other entity (other than the Company) that
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, the Company including, without
limitation, any member of an affiliated group of which the Company is a common
parent corporation as provided in Section 1404 of the Code.

(g)           Survival.  Termination of the Employment Period in
accordance with this Section 11,
or expiration of the Employment Period, will not affect the provisions of this
Employment Agreement that survive such termination, including, without
limitation, the provisions in the Confidentiality, Inventions and
Non-Solicitation Agreement and in Section 9 of this Agreement, and will not
limit either party’s ability to pursue remedies at law or equity.

12.           Executive
Assistance.  Both during
and after Executive’s employment with the Company, Executive shall, upon
reasonable notice, furnish the Company with such information as may be in
Executive’s possession or control, and cooperate with the Company, as the
Company may reasonably request (with due consideration to Executive’s business
activities and obligations after the Employment Period), in connection with any
litigation, claim, or other dispute in which the Company or any of its
Affiliates is or may become a party.

13.           Effect of
Prior Agreements.  This
Employment Agreement, the New Management Agreement, the Stockholders Agreement,
the Equity Purchase Agreement, and the Confidentiality, Inventions and
Non-Solicitation Agreement  contain the
entire understanding among Parent, the Company and Executive relating to the
subject matter hereof and supersede

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any prior
employment agreement among Executive, Parent and the Company or other agreement
relating to the subject matter hereof among Parent, the Company and Executive,
including but not limited to (i) that certain letter agreement previously
executed by the Company and Executive dated September 6, 2005 and (ii) the
Management Agreement.  Executive agrees
and acknowledges that he is entitled to no benefits or compensation and has no
other rights against the Company, the Parent, and their Affiliates, except as
otherwise set forth in this Employment Agreement and, to the extent any such
benefits, compensation or rights are owed to him, expressly waives such
benefits, compensation and rights; provided, however, that the Management
Agreement shall continue to apply to the 725 shares of Common Stock vested
thereunder as of the Effective Date and, provided further, that the remaining
2,176 shares of unvested Common Stock issued under the Management Agreement
shall be repurchased by the Parent through a single sum payment of $9,857.28,
to be paid to the Executive within thirty (30) days of the execution of this
Agreement.

14.           Modification
and Waiver.  This
Employment Agreement may not be modified or amended, nor may any provisions of
this Employment Agreement be waived, except by an instrument in writing signed
by the parties. No written waiver will be deemed to be a continuing waiver
unless specifically stated therein, and each such waiver will operate only as
to the specific term or condition waived and shall not constitute a waiver of
such term or condition for the future or as to any act other than that
specifically waived.

15.           Severability.  If, for any reason, any provision of this
Employment Agreement is held invalid, such invalidity will not affect any other
provision of this Employment Agreement, and each provision will to the full
extent consistent with law continue in full force and effect.  If any provision of this Employment Agreement
is held invalid in part, such invalidity will in no way affect the rest of such
provision, and the rest of such provision, together with all other provisions
of this Employment Agreement, will, to the full extent consistent with law,
continue in full force and effect.

16.           Notices.  Any notice, consent, waiver and other
communications required or permitted pursuant to the provisions of this
Employment Agreement must be in writing and will be deemed to have been
properly given (a) when delivered by hand; (b) when sent by facsimile (with
acknowledgment of complete transmission), provided that a copy is mailed by
U.S. certified mail, return receipt requested; (c) three (3) days after sent by
certified mail, return receipt requested; or (d) one (1) day after deposit with
a nationally recognized overnight delivery service, in each case to the
appropriate addresses and facsimile numbers set forth below:

If
to the Company:

VICORP Restaurants, Inc.

c/o Wind Point Partners

Suite 3700

676 North Michigan Avenue

Chicago, Illinois  60611

Attn:       Michael
Solot

Fax:         (312)
255-4820

 10

 

With
a copy to:

Sachnoff & Weaver, Ltd.

10 South Wacker Drive

40th Floor

Chicago, Illinois 60606

Attn:       Seth
M. Hemming, Esq.

Fax:         (312)
207-6400

If
to Executive:

Kenneth Keymer

6079 Olde Stage Rd.

Boulder, Colorado 80302

Each party will be entitled to specify a different
address for the receipt of subsequent notices by giving written notice thereof
to the other party in accordance with this Section 16.

17.           Third
Party Beneficiaries. 
Nothing herein expressed or implied is intended or shall be construed to
confer upon or give to any person or entity, other than the parties to this
Employment Agreement and their respective permitted successors and assigns, any
rights or remedies under or by reason of this Employment Agreement.

18.           Headings.  The headings and other captions in this
Employment Agreement are included solely for convenience of reference and will
not control the meaning and interpretation of any provision of this Employment
Agreement.

19.           Governing
Law; Arbitration.  This
Employment Agreement has been executed in the State of Illinois, and its
validity, interpretation, performance, and enforcement will be governed by the
laws of such state, except with respect to conflicts of laws principles.  Except for disputes arising out of an alleged
violation of the restrictive covenants set forth in the Confidentiality,
Inventions and Non-Solicitation Agreement and in Section 9 of this Employment Agreement (collectively, the “Restrictive
Covenants”), any controversy or claim arising out of or relating to
any provision of this Employment Agreement shall be resolved by
arbitration.  Further, as to any dispute
arising out of an alleged violation of the Restrictive Covenants, Executive agrees and consents to
submit to personal jurisdiction in the state of Illinois in any state or
federal court of competent subject matter jurisdiction situated in Cook County,
Illinois.  Executive further agrees that
the sole and exclusive venue for any suit arising out of, or seeking to enforce,
the terms of the Restrictive Covenants shall be in a state or federal court of
competent subject matter jurisdiction situated in Cook County, Illinois.  In addition, the Executive waives any right
to challenge in another court any judgment entered by such Cook County court or
to assert that any action instituted by the Company in any such court is in the
improper venue or should be transferred to a more convenient forum.  With respect to any other dispute hereunder,
the arbitration process
shall be instigated by either party giving written notice to the other of the
desire for arbitration and the factual allegations underlying the basis for the
dispute.  The arbitration shall be
conducted by such alternative dispute resolution service as is agreed to by the
parties, or, failing such agreement within thirty (30) days after such dispute
arises, by arbitrators selected as described below in accordance with the rules
and procedures established by the 

 11
 

 

American
Arbitration Association.  Only a person
who is a practicing lawyer admitted to a state bar may serve as an
arbitrator.  Each party shall select one
arbitrator, and those arbitrators shall choose a third arbitrator; these
arbitrators shall constitute the panel. 
The American Arbitration Association rules for employment arbitration
shall control any discovery conducted in connection with the arbitration.  The expenses of arbitration (other than
attorneys’ fees) shall be shared as determined by arbitration.  Each side to the claim or controversy shall
pay his or its own attorneys’ fees.  Any
result reached by the panel shall be binding on all parties to the arbitration,
and no appeal may be taken.  It is agreed
that any party to any award rendered in such arbitration proceeding may seek a
judgment upon the award and that judgment may be entered thereon by any court
having jurisdiction.  The arbitration
shall be conducted in Chicago, Illinois.

20.           Non-Assignability/Binding
Effect.  The Executive
acknowledges that the services to be rendered by him are unique and
personal.  Accordingly, the Executive may
not assign any of his rights or delegate any of his duties or obligations under
this Agreement.  The rights and
obligations of the Company under this Agreement shall inure to the benefit of
and shall be binding upon the successors and assigns of the Company.

21.           No Strict
Construction.  The
language used in this Employment Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rule of strict
construction will be applied against any person.

IN WITNESS WHEREOF, the Company
has caused this Employment Agreement to be executed by its duly authorized
officer and Executive has signed this Employment Agreement, as of the date
first above written.

	
  

  	
  VICORP RESTAURANTS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter Van Benthuysen

  
	
   

  	
  Its:

  	
  Chairman

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
  /s/ Kenneth Keymer

  
	
   

  	
  Kenneth Keymer

  

 

 12

EXHIBIT
A

CONFIDENTIALITY,
INVENTIONS AND NON-SOLICITATION AGREEMENT

In consideration of employment by VICORP Restaurants,
Inc., a Colorado corporation, its successors or assigns (the “Company”) of Kenneth Keymer (“Executive”), it is understood and
agreed as follows:

1.             Confidential Information.

(a)                                  Executive
acknowledges that the Confidential Information (as defined below) constitutes a
protectible business interest of the Company and its parent VI Acquisition
Corp., a Delaware corporation (“Parent”) and covenants and agrees that
at all times during the period of Executive’s employment, and at all times
after termination of such employment, Executive will not, directly or
indirectly, disclose, furnish, make available or utilize any Confidential
Information other than in the course of performing duties as an employee of the
Company.  Executive will abide by Company
policies and rules as may be established from time to time by it for the
protection of its Confidential Information. 
Executive agrees that, in the course of employment with the Company,
Executive will not bring to the Company’s offices nor use, disclose to the
Company, or induce the Company to use, any confidential information or
documents belonging to others.  Executive’s
obligations under this Section 1.a.
with respect to particular Confidential Information will survive expiration or
termination of this Confidentiality, Inventions and Non-Solicitation Agreement
(this “Agreement”), and
Executive’s employment with the Company, and will terminate only at such time
(if any) as the Confidential Information in question becomes generally known to
the public other than through a breach of Executive’s obligations under this
Agreement.

(b)                                 As
used in this Agreement, the term “Confidential
Information” means any and all confidential, proprietary or trade
secret information, whether disclosed, directly or indirectly, verbally, in
writing or by any other means in tangible or intangible form, including that
which is conceived or developed by Executive, applicable to or in any way
related to: (i) the present or future business of Parent, the Company or any of
their Affiliates (as defined below); (ii) the research and development of
Parent, the Company or any of their Affiliates; or (iii) the business of any
client or vendor of Parent, the Company or any of their Affiliates.  Such Confidential Information includes the
following property or information of Parent, the Company and their Affiliates,
by way of example and without limitation: trade secrets, processes, formulas,
data, program documentation, customer lists, designs, drawings, algorithms,
source code, object code, know-how, improvements, inventions, licenses,
techniques, all plans or strategies for marketing, development and pricing,
business plans, financial statements, profit margins and all information
concerning existing or potential clients, suppliers or vendors.  Confidential Information of Parent and the
Company also means all similar information disclosed to Parent or the Company
by third parties which 

 

                                                is
subject to confidentiality obligations. 
The term “Affiliates”
means (i) all persons or entities controlling, controlled by or under common
control with, Parent and/or the Company, (ii) all companies or entities in
which Parent or the Company own an equity interest and (iii) all predecessors,
successors and assigns of the those Affiliates identified in (i) and (ii).

2.             Return of Materials.  Upon termination of employment with the
Company or at any other time as requested by the Company, and regardless of the
reason for such termination or request, Executive will leave with, or promptly
return to, the Company all documents, records, notebooks, magnetic tapes, disks
or other materials, including all copies, in Executive’s possession or control
which contain Confidential Information or any other information concerning
Parent, the Company, any of their Affiliates or any of their respective
products, services or clients, whether prepared by the Executive or others.

3.             Inventions as Sole Property of the Company.

(a)                                  Executive
covenants and agrees that all Inventions (as defined below) shall be the sole
and exclusive property of the Company.

(b)                                 As
used in this Agreement, the term “Inventions”
means any and all patents, copyrights, copyright designs, inventions,
developments, discoveries, improvements, processes, software, source code,
catalogues, prints, business applications, plans, works of authorship, concepts
or ideas, or expressions thereof, whether or not subject to patents, copyright,
trademark, trade secret protection or other intellectual property right
protection (in the United States or elsewhere), and whether or not reduced to
practice, conceived or developed by Executive while employed with the Company
or within one (1) year following termination of such employment which relate to
or result from the actual or anticipated business, work, research or
investigation of Parent, the Company or any of their Affiliates or which are
suggested by or result from any task assigned to or performed by Executive for
Parent, the Company or any of their Affiliates.

(c)                                  Executive
acknowledges that all original works of authorship which are made by him
(solely or jointly) are works made for hire under the United States Copyright
Act (17 U.S.C., et seq.).

(d)                                 Executive
agrees to promptly disclose to the Company all Inventions, all original works
of authorship and all work product relating thereto.  This disclosure will include complete and
accurate copies of all source code, object code or machine-readable
copies, documentation, work notes, flow-charts, diagrams, test data,
reports, samples and other tangible evidence or results (collectively, “Tangible Embodiments”) of such
Inventions, works of authorship and work product.  All Tangible Embodiments of any Invention,
work of authorship or work product related thereto will be deemed to have been
assigned to the Company as a result of the act of expressing any Invention or
work of authorship therein.

 2
 

 

(e)                                  Executive
hereby assigns to the Company (together with the right to prosecute or sue for
infringements or other violations of the same) the entire worldwide right,
title and interest to any such Inventions or works made for hire, and Executive
agrees to perform, during and after employment, all acts deemed necessary or desirable
by the Company to permit and assist it, at the Company’s expense, in
registering, recording, obtaining, maintaining, defending, enforcing and
assigning Inventions or works made for hire in any and all countries.  Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Executive’s
agents and attorneys-in-fact to act for and in Executive’s behalf
and instead of Executive, to execute and file any documents and to do all other
lawfully permitted acts to further the above purposes with the same legal force
and effect as if executed by Executive; this designation and appointment
constitutes an irrevocable power of attorney and is coupled with an interest.

(f)                                    Without
limiting the generality of any other provision of this Section 3, Executive hereby authorizes the Company and each of
its Affiliates (and their respective successors) to make any desired changes to
any part of any Invention, to combine it with other materials in any manner
desired, and to withhold Executive’s identity in connection with any
distribution or use thereof alone or in combination with other materials.

(g)                                 Pursuant
to the Illinois Employee Patent Act, Public Act 83-493, this Agreement does not
apply to any invention for which no equipment, supplies, facility or trade
secret information of Parent or the Company was used and which was developed
entirely on Executive’s own time, unless (1) the invention relates (a) to the
business of Parent or the Company or (b) to Parent’s or the Company’s actual
demonstrably anticipated research or development; or (2) the invention results
from any work performed by Executive for Parent or the Company.

(h)                                 The
obligations of Executive set forth in this Section 3 (including, but not limited to, the assignment
obligations) will continue beyond the termination of Executive’s employment
with respect to Inventions conceived or made by Executive alone or in concert
with others during Executive’s employment with the Company and during the one
(1) year thereafter, whether pursuant to this Agreement or otherwise.  These obligations will be binding upon
Executive and Executive’s executors, administrators and other representatives.

4.                                       List of Prior Inventions.  All Inventions which Executive has made prior
to employment by the Company are excluded from the scope of this
Agreement.  As a matter of record,
Executive has set forth on Annex I
hereto a complete list of those Inventions which might relate to Parent’s or
the Company’s business and which have been made by Executive prior to
employment with the Company.  Executive
represents that such list is complete. 
If no list is attached, Executive represents that there are no prior
Inventions.

 3
 

 

5.             Non-Solicitation.

(a)                                  Executive
will not, during the term of Executive’s employment with the Company and for
two (2) years thereafter (the “Restricted Period”), directly or
indirectly (whether as an owner, partner, shareholder, agent, officer,
director, employee, independent contractor, consultant, or otherwise) with or
through any individual or entity:

i.              employ, engage or directly or
indirectly solicit for employment or engagement any individual who is an
employee of Parent, the Company or any of their Affiliates (or was an employee
of any such entities during the year preceding such solicitation) or otherwise
seek to adversely influence or alter such individual’s relationship with
Parent, the Company or any of their Affiliates; or

ii.             directly or indirectly solicit or
encourage any individual or entity that is, or was during the twelve-month
period immediately prior to the termination of Executive’s employment with the
Company for any reason, a customer or vendor of Parent or the Company to
terminate or otherwise alter his or its relationship with Parent or the
Company.

(b)                                 The
Restricted Period shall be extended for a period equal to any time period that
Executive is in violation of this Section
5.

6.                                 Equitable
Remedies.  Executive acknowledges
and agrees that the agreements and covenants set forth in this Agreement are
reasonable and necessary for the protection of Parent’s and the Company’s
business interests, that irreparable injury will result to Parent and the
Company if Executive breaches any of the terms of said covenants, and that in
the event of Executive’s actual or threatened breach of any such covenants,
Parent and the Company will have no adequate remedy at law.  Executive accordingly agrees that, in the
event of any actual or threatened breach by Executive of any of said covenants,
Parent and the Company will be entitled to immediate injunctive and other
equitable relief, without posting bond or other security and without the
necessity of showing actual monetary damages. 
Nothing in this Section 6
will be construed as prohibiting Parent or the Company from pursuing any other
remedies available to them for such breach or threatened breach, including the
recovery of any damages that they are able to prove.

7.                                 No
Right to Employment.  No
provision of this Agreement shall give Executive any right to continue in the
employ of the Company or any of its Affiliates, create any inference as to the
length of employment of Executive, affect the right of the Company or its
Affiliates to terminate the employment of Executive, with or without cause, or
give Executive any right to participate in any Executive welfare, pension or
benefit plan or other program of the Company or any of its Affiliates.

8.                                 Modification
and Waiver.  This Agreement may
not be modified or amended except by an instrument in writing signed by the
parties.  No term or condition of this
Agreement will be deemed to have been waived, except by written instrument of
the party charged with such waiver.  No
such written waiver will be deemed to be a continuing waiver

 4
 

 

                                          unless
specifically stated therein, and each such waiver will operate only as to the
specific term or condition waived and shall not constitute a waiver of such
term or condition for the future or as to any act other than that specifically
waived.

9.                                 Severability.  Executive acknowledges that the agreements
and covenants contained in this Agreement are essential to protect Parent, the
Company and their goodwill.  Each of the
covenants in this Agreement will be construed as independent of any other
covenants or other provisions of this Agreement.  It is the intention and desire of the parties
that the court treat any provisions of this Agreement which are not fully
enforceable as having been modified to the extent deemed necessary by the court
to render them reasonable and enforceable and that the court enforce them to
such extent.

10.                                 Notices.
Any notice, consent, waiver and other communications required or permitted
pursuant to the provisions of this Agreement must be in writing and will be
deemed to have been properly given (a) when delivered by hand; (b) when sent by
facsimile (with acknowledgment of complete transmission), provided that a copy
is mailed by U.S. certified mail, return receipt requested; (c) three (3) days
after sent by certified mail, return receipt requested; or (d) one (1) day
after deposit with a nationally recognized overnight delivery service, in each
case to the appropriate addresses and facsimile numbers set forth below:

If
to the Company:

VICORP Restaurants, Inc.

c/o Wind Point Partners

Suite 3700

676 North Michigan Avenue

Chicago, Illinois  60611

Attn:       Michael
Solot

Fax:         (312)
255-4820

With
a copy to:

Sachnoff & Weaver, Ltd.

10 South Wacker Drive

40th Floor

Chicago, Illinois 60606

Attn:       Seth
M. Hemming, Esq.

Fax:         (312)
207-6400

If
to Executive:

Kenneth Keymer

6079 Olde Stage Rd.

Boulder, Colorado 80302

Each party will be
entitled to specify a different address for the receipt of subsequent notices
by giving written notice thereof to the other party in accordance with this Section 10.

 5
 

 

11.                                 Headings.  The headings and other captions in this
Agreement are included solely for convenience of reference and will not control
the meaning and interpretation of any provision of this Agreement.

12.                                 Governing Law.  This Agreement has been executed in the State
of Illinois, and its validity, interpretation, performance, and enforcement
will be governed by the laws of such state, except with respect to conflicts of
laws principles.

13.                                 Binding
Effect.  This Agreement will be
binding upon and inure to the benefit of Executive, the Company, and their
respective successors and permitted assigns. 
The Company will be entitled to assign its rights and duties under this
Agreement.

14.                                 No Strict Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction will be applied against any person.

IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed by its duly authorized officer and
Executive has signed this Agreement, as of the date written below.

	
  

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
  Date: May 9,
  2007

  	
  /s/  Kenneth
  Keymer

  
	
   

  	
  Kenneth Keymer

  
	
   

  	
   

  
	
   

  	
  VICORP RESTAURANTS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter Van Benthuysen

  
	
   

  	
  Its:

  	
  Chairman

  

 

 6Exhibit 4.5

DADE BEHRING

2004 INCENTIVE COMPENSATION PLAN

(as Amended and Restated
Effective May 3, 2007 )

SECTION 1. PURPOSE

The purpose of this Dade Behring 2004 Incentive
Compensation Plan (the “Plan”) is to attract, retain and motivate employees,
officers and directors of Dade Behring Holdings, Inc. (the “Company”) and
its Subsidiaries (individually or collectively, “Employer”) by providing them
the opportunity to acquire a proprietary interest in the Company or other
incentives and to align their interests and efforts to the interests of the
Company’s stockholders. The Plan is intended to permit the grant of Awards that
constitute “qualified performance-based compensation” under section 162(m) of
the Code.

SECTION 2. DEFINITIONS

Certain terms used in this Plan have the meanings set
forth in Appendix I.

SECTION 3. ELIGIBILITY

The Committee may grant an Award to any employee,
officer or director of the Company or a Subsidiary whom the Committee from time
to time selects.

SECTION 4. SHARES
SUBJECT TO THE PLAN

4.1          Aggregate Shares

The number of shares of Common Stock issued under this
Plan shall not exceed, in the aggregate, fourteen million three hundred
thousand (14,300,000) shares of Common Stock (as such number is adjusted
pursuant to Section 15 hereof). Common Stock to be issued with respect to
Awards may be either authorized and unissued shares, treasury shares, or a
combination thereof.

4.2          Limitations

Subject to adjustment as provided in Section 15,
the number of shares of Common Stock issued under this Plan with respect to
Restricted Stock, Stock Units, Performance Shares, Performance Units and Stock
Appreciation Rights shall not exceed one million (1,000,000) shares of Common
Stock. Subject to adjustment as provided in Section 15, no Participant
shall be eligible to receive in any one calendar year Awards relating to more
than five hundred thousand (500,000) shares of Common Stock.

4.3          Share Usage

Shares of Common Stock covered by an Award shall not
be counted as used unless and until they are actually issued and delivered to a
Participant. If any Award lapses, expires, terminates or is canceled prior to
the issuance of shares of Common Stock hereunder or if shares of Common Stock
are issued under this Plan to a Participant and thereafter are forfeited to or
otherwise reacquired by the Company, the shares of Common Stock subject to such
Awards and the forfeited or reacquired shares of Common Stock shall again be
available for issuance under the Plan.  The number of shares of Common Stock available
for issuance under the Plan shall not be reduced to reflect any dividends or
dividend equivalents that are reinvested into additional shares or credited as
additional Restricted Stock, Stock Units, Performance Stock, Performance Units
or Stock Appreciation Rights. Notwithstanding the foregoing, for purposes of
the last sentence of Section 4.2, any such shares of Common Stock shall be
counted in accordance with the requirements of section 162(m) of the
Code.

 1
 

Substitute Awards shall not reduce the number of shares
authorized for issuance under the Plan. In the event that an Acquired Entity
has shares available for awards or grants under one or more preexisting plans
not adopted in contemplation of such acquisition or combination, then, to the
extent determined by the Board or the Committee, the shares available for grant
pursuant to the terms of such preexisting plan (as adjusted, to the extent
appropriate, using the exchange ratio or other adjustment or valuation ratio or
formula used in such acquisition or combination to determine the consideration
payable to holders of common stock of the entities are parties to such
acquisition or combination) may be used for Awards under the Plan and shall not
reduce the number of shares of Common Stock authorized for issuance under the
Plan; provided, however, that Awards using such available shares shall not be
made after the date awards or grants could have been made under the terms of
such preexisting plans, absent the acquisition or combination, and shall only
be made to individuals who were not employees or non-employee directors of the
Employer prior to such acquisition or combination.

SECTION 5. AWARDS

5.1          Form, Grant and
Settlement of Awards

The Committee shall have the authority, in its sole
discretion, to determine the type or types of Awards to be granted under this
Plan. Such Awards may be granted either alone, in addition to, or in tandem
with, any other type of Award. Any Award settlement may be subject to such
conditions, restrictions and contingencies, as the Committee shall determine.

5.2          Evidence of Awards

Awards granted under the Plan shall be evidenced by a
written (including electronic) instrument that shall contain such terms,
conditions, limitations and restrictions as the Committee shall deem advisable
and that are not inconsistent with this Plan.

5.3          Deferrals

The Committee may permit a Participant to defer
receipt of the payment of any Award. If any such deferral election is
permitted, the Committee, in its sole discretion, shall establish rules and
procedures for such payment deferrals, which may include provisions for the
payment or crediting of interest or dividend equivalents or converting such
credits to deferred share unit equivalents.

Notwithstanding any provision in the Plan or any Award
to the contrary, the Company may, at any time and without participant consent,
modify the terms of the Plan or any Award as it determines appropriate to avoid
or mitigate the imposition of additional taxes under section 409A of the Code. To
the extent deemed appropriate by the Committee, the Plan shall be interpreted
and construed in such a manner to avoid the imposition of additional taxes
under section 409A of the Code.

SECTION 6. OPTIONS

6.1          Grant of Options

The Committee may grant Options. Options granted are
not intended to be “incentive stock options” within the meaning of section 422A
of the Code.

6.2          Option Exercise Price

The exercise price for a share of Common Stock
purchased under an Option shall not be less than 100% of the Fair Market Value
of a share of Common Stock for the date of grant, except in the case of
Substitute Awards.

 2
 

6.3          Term of Options

Subject to earlier termination in accordance with the
terms of this Plan and the instrument evidencing the Option, the maximum term
of an Option shall be ten years from the date of grant.

6.4          Exercise of Options

The Committee shall establish and set forth in each
instrument that evidences an Option the time at which, or the installments in
which, the Option shall vest and become exercisable, any of which provisions
may be waived or modified by the Committee at any time. To the extent an Option
has vested and become exercisable, the Option may be exercised in whole or in
part from time to time prior to its expiration by delivery to the Company of a
properly executed stock option exercise agreement or notice, in a form and in
accordance with procedures established by the Committee, setting forth the
number of shares of Common Stock with respect to which the Option is being
exercised, the restrictions imposed on the shares of Common Stock purchased
under such exercise agreement, if any, and such representations and agreements
as may be required by the Committee, accompanied by payment in full as
described in Section 6.5.

6.5          Payment of Exercise
Price

The exercise price for shares purchased under an
Option shall be paid in full to the Company by delivery of consideration equal
to the product of the Option exercise price and the number of shares of Common
Stock purchased. Such consideration must be paid before the Company will issue
the shares of Common Stock being purchased and must be in a form or a
combination of forms acceptable to the Committee for that purchase, which forms
may include: (i) cash or its equivalent (e.g., by check), (ii) other
shares of Common Stock (by either actual delivery of Common Stock or by
attestation—presenting satisfactory proof of beneficial ownership of such
Common Stock, in the amount or value equal to the product of the Option
exercise price multiplied by the number of shares of Common Stock to be
acquired plus the amount of any additional federal, state and local taxes
required to be withheld by reason of the exercise of the Option, (iii) by
a “cashless exercise” through a third party, or (iv) such other
consideration as the Committee may permit.

6.6          Post-Termination
Exercise

The Committee
shall establish and set forth in each instrument that evidences an Option
whether the Option shall continue to be exercisable, and the terms and
conditions of such exercise, after a Termination of Service, any of which
provisions may be waived or modified by the Committee at any time. If not so
established in the instrument evidencing the Option, the Option shall be
exercisable according to the following terms and conditions, which may be
waived or modified by the Committee at any time:

(a)                                  Any
portion of an Option that is not vested and exercisable on the date of a
Participant’s Termination of Service shall expire on such date.

(b)                                 Any
portion of an Option that is vested and exercisable on the date of a Participant’s
Termination of Service shall expire on the earliest to occur of:

(i)                                     if
the Participant’s Termination of Service occurs for reasons other than Cause,
Disability or death, the date that is ninety days after the date of such
Termination of Service;

(ii)                                  if
the Participant’s Termination of Service occurs by reason of Disability or
death, the date that is six months after the date of such Termination of
Service; effective for Options issued subsequent to May 3, 2007, the date
that is twelve months after the date of such Termination of Service;

 3
 

(iii)                               the last day of the
maximum term of the Option (the “Option Expiration Date”); and

(iv)                              the
date provided in Section 15.2 below.

Notwithstanding the foregoing, if a Participant dies
after his or her Termination of Service but while an Option is otherwise
exercisable, the portion of the Option that is vested and exercisable on the
date of such Termination of Service shall expire upon the earlier to occur of (y) the
Option Expiration Date and (z) the six month anniversary of the date of
death, (effective for Options issued subsequent to May 3, 2007, the date
that is twelve months after the date of death) unless the Committee determines
otherwise.

Also notwithstanding the foregoing, in case a
Participant’s Termination of Service occurs for Cause, all Options granted to
the Participant shall automatically expire upon first notification to the
Participant of such termination, unless the Committee determines otherwise. If
a Participant’s employment or service relationship with the Company is
suspended pending an investigation of whether the Participant shall be
terminated for Cause, all the Participant’s rights under any Option shall
likewise be suspended during the period of investigation. If any facts that
would constitute termination for Cause are discovered after a Participant’s
Termination of Service, any Option then held by the Participant may be
immediately terminated by the Committee, in its sole discretion.

SECTION 7. RESTRICTED
STOCK AND STOCK UNITS

7.1          Grant of Restricted
Stock and Stock Units

The Committee may grant Restricted Stock and Stock
Units on such terms and conditions and subject to such repurchase or forfeiture
restrictions, if any (which may be based on continuous service with the Company
or a Subsidiary or the achievement of any performance criteria), as the
Committee shall determine in its sole discretion, which terms, conditions and
restrictions shall be set forth in the instrument evidencing the Award.

7.2          Issuance of Shares;
Settlement of Awards

Upon the satisfaction of any terms, conditions and
restrictions prescribed with respect to Restricted Stock or Stock Units, or
upon a Participant’s release from any terms, conditions and restrictions of
Restricted Stock or Stock Units, as determined by the Committee, and subject to
the provisions of Section 11, (a) the shares of Restricted Stock
covered by each Award of Restricted Stock shall become freely transferable by
the Participant, and (b) Stock Units shall be paid in shares of Common
Stock or, if set forth in the instrument evidencing the Awards, in a
combination of cash and shares of Common Stock as the Committee shall determine
in its sole discretion. Any fractional shares subject to such Awards shall be
paid to the Participant in cash.

7.3          Dividends and
Distributions

Participants holding shares of Restricted Stock or
Stock Units may, if the Committee so determines, be credited with dividends
paid with respect to the underlying shares of Common Stock or dividend
equivalents while they are so held in a manner determined by the Committee in
its sole discretion. The Committee may apply any restrictions to the dividends
or dividend equivalents that the Committee deems appropriate. The Committee, in
its sole discretion, may determine the form of payment of dividends or dividend
equivalents, including cash, shares of Common Stock, Restricted Stock or Stock
Units.

7.4          Waiver of Restrictions

Notwithstanding any other provisions of this Plan, the
Committee, in its sole discretion, may waive the repurchase or forfeiture
period and any other terms, conditions or restrictions on any Restricted Stock
or

 4
 

Stock Unit under such
circumstances and subject to such terms and conditions as the Committee shall
deem appropriate.

SECTION 8. PERFORMANCE
STOCK AND PERFORMANCE UNITS

8.1          Grant of Performance
Stock

The Committee may grant Awards of Performance Stock
and designate the Participants to whom Performance Stock is to be awarded and
determine the number of shares of Performance Stock, the length of the
performance period and the other terms and conditions of each such Award. Each
Award of Performance Stock shall entitle the Participant to a payment in the
form of Common Stock, cash or a combination, as the Committee may determine,
upon the attainment of performance criteria and other terms and conditions
specified by the Committee. Notwithstanding the satisfaction of any performance
criteria, the number of shares to be issued or the amount of cash to be paid
under an Award of Performance Stock may be adjusted on the basis of such
further consideration as the Committee shall determine in its sole discretion.

8.2          Grant of Performance
Units

The Committee may grant Awards of Performance Units
and designate the Participants to whom Performance Units are to be awarded and
determine the number of Performance Units, the length of the performance period
and the terms and conditions of each such Award. Each Award of Performance
Units shall entitle the Participant to a payment in the form of Common Stock,
cash or a combination, as the Committee may determine, upon the attainment of
performance criteria and other terms and conditions specified by the Committee.
Notwithstanding the satisfaction of any performance criteria, the number of
shares to be issued or the amount of cash to be paid under an Award of
Performance Units may be adjusted on the basis of such further consideration as
the Committee shall determine in its sole discretion.

SECTION 9. CASH-BASED
AWARDS

The Committee may grant other incentives payable in
cash under this Plan as it determines appropriate. Cash awards may be subject
to terms and conditions, which may vary from time to time and among
Participants, as the Committee deems appropriate. The maximum amount of a cash
award which may be granted to a Participant during any calendar year under this
Plan shall not be greater than five million dollars ($5,000,000). Payment of
cash awards under this Plan will normally depend on meeting Performance Goals.

SECTION 10. STOCK
APPRECIATION RIGHTS

10.1   Grant of Stock Appreciation
Rights

The Committee may grant Stock Appreciation Rights to
Participants on such terms and conditions as the Committee shall determine in
its sole discretion, which terms and conditions shall be set forth in the
instrument evidencing the Award. The Committee shall determine in its sole
discretion the number of shares of Common Stock subject to Stock Appreciation
Rights granted. A Stock Appreciation Right may be granted in tandem with an
Option or other Award or alone (“freestanding”). The grant price of a tandem
Stock Appreciation Right shall be equal to the exercise price of the related
Option, and the grant price of a freestanding Stock Appreciation Right shall
not be less than 100% of the Fair Market Value of a share of Common Stock on
the date of grant. A Stock Appreciation Right may be exercised upon such terms
and conditions and for such term as the Committee determines in its sole
discretion; provided, however, that, subject to earlier termination in
accordance with the terms of the Plan and the instrument evidencing the Stock
Appreciation Right, the term of a Stock Appreciation Right shall not exceed ten
years from the date of grant.

 5
 

10.2   Payment of Stock Appreciation
Rights Amount

Upon the exercise of a Stock Appreciation Right, a
Participant shall be entitled to receive payment in an amount determined by
multiplying:  (a) the difference
between the Fair Market Value of a share of the Common Stock on the date of
exercise over the grant price by (b) the number of shares of Common Stock
with respect to which the Stock Appreciation Right is exercised. At the
discretion of the Committee as set forth in the instrument evidencing the
Award, the payment upon exercise of a Stock Appreciation Right may be in cash,
in shares of Common Stock, in some combination thereof or in any other manner
approved by the Committee in its sole discretion.

SECTION 11. PERFORMANCE
GOALS

11.1   Awards Subject to Performance
Goals

Awards of Restricted Stock, Stock Units, Performance
Shares, Performance Units, Cash- Based Awards, Stock Appreciation Rights,
Options and other Awards made pursuant to this Plan may be made subject to such
criteria and objectives as may be established by the Committee, which shall be
satisfied or met (i) as a condition to the exercisability of all or a
portion of an Option, (ii) as a condition to the grant of an Award, or (iii) as
a condition to the Participant’s receipt of the shares of Common Stock or cash
subject to such Award. In the case of an Award that is intended to qualify as “qualified
performance-based compensation” under section 162(m) of the Code, such
performance goals may include any or all of the following or any combination
thereof:  net income (earnings less
interest and taxes); earnings before interest, taxes, depreciation, amortization
and non-recurring and non-cash charges (or any combination thereof); gross
margin; operating margin; revenue growth; net cash flow (EBITDA less capital
spending, taxes paid, one-time nonrecurring items such as restructuring cost
and adjusted for the change in the managed capital base which includes trade
account receivable, net inventory, pre-paids, accounts payable and accrued
liabilities and other operating related cash inflows and outflows) or other
cash flow(s) including operating cash flows, free cash flow, discounted
cash flow return on investment and cash flow in excess of cost of capital (or
any combination thereof); earnings or operating earnings per share (primary or
fully diluted); economic value added; cash-flow return on investment; income (pre-tax
or net); total shareholder return; return on investment; return on equity;
return on assets; return on sales; return on invested capital,  the attainment by a share of Common Stock of
a specified Fair Market Value for a specified period of time; an increase in
the Fair Market Value of a share of Common Stock; customer satisfaction
metrics; regulatory compliance metrics; revenue; net operating profits after
taxes; debt to equity ratio; price/earnings ratio; market share; expense
ratios; expense reduction; completion of key projects; any individual
performance objective measured solely in terms of quantitative targets related
to the Company, the Employer or the Employer’s business; or any increase or
decrease of one or more of the forgoing over a specified period (the “Performance
Goals”). Performance Goals may be stated in absolute terms or relative to
comparison companies or indices to be achieved during a period of time. The
Committee shall have absolute discretion to reduce the amount of the Award payable
to any Participant for any period below the maximum Award determined based on
the attainment of Performance Goals, and the Committee may decide not to pay
any such Award to a Participant for a period, based on such criteria, factors
and measures as the Committee in its sole discretion may determine, including
but not limited to individual performance or impact and financial and other
performance or financial criteria of the Company, a Subsidiary or other
business unit in addition to Performance Goals.

11.2   Use and Calculation of
Performance Goals

Performance Goals may relate to the performance of the
Company, the Employer, any portion of the business, product line, or any
combination thereof, relative to a market index, a group of other companies (or
their subsidiaries, business units or product lines), or a combination thereof,
all as determined by the Committee. If the Committee desires that compensation
payable pursuant to any Award subject to

 6
 

Performance Goals be “qualified
performance-based compensation” within the meaning of section 162(m) of
the Code, the Performance Goals (i) shall be established by the Committee
no later than the end of the first 90 days of the performance period or period
of restriction, as applicable (or such other time prescribed by the Internal
Revenue Service) and (ii) shall satisfy all other applicable requirements
imposed by Treasury Regulations promulgated under section 162(m) of the
Code, including the requirement that such Performance Goals be stated in terms
of an objective formula or standard and the Committee may not in any event
increase the amount of compensation payable to a Participant upon the
satisfaction of any Performance Goal. Each Award may provide for lesser payment
in the event of partial fulfillment of Performance Goals.

SECTION 12. ADMINISTRATION

The Committee shall have the power, authority and
discretion to administer this Plan and prescribe, amend and rescind rules and
procedures governing the administration of this Plan, including but not limited
to the full power, authority and discretion to: (a) select employees,
officers or directors of the Employer to whom Awards may from time to time be
granted under this Plan; (b) determine the type or types of Awards to be
granted to each Participant under this Plan; (c) determine the number of
shares of Common Stock to be covered by each Award granted under this Plan; (d) determine
the terms and conditions of any Award granted under this Plan; (e) approve
the forms of agreements for use under this Plan; (f) determine whether, to
what extent and under what circumstances Awards may be settled in cash, shares
of Common Stock or other property or canceled or suspended; (g) determine
whether, to what extent and under what circumstances cash, shares of Common
Stock, other property and other amounts payable with respect to an Award shall
be deferred at the election of the Participant or the Committee; (h) interpret
and administer this Plan and any instrument evidencing an Award or agreement
entered into under this Plan; (i) establish such rules and
regulations as it shall deem appropriate for the proper administration of this
Plan; and (j) make any other determination and take any other action that
the Committee deems necessary or desirable for administration of this Plan.

A majority of the Committee shall constitute a quorum.
The acts of the Committee shall be either (i) acts of a majority of the
members of the Committee present at any meeting at which a quorum is present or
(ii) acts approved in writing by all of the members of the Committee
without a meeting. To the extent consistent with applicable law, the Committee
in its sole discretion and on such terms and conditions as it may provide may
delegate all or any part of its authority and power under the Plan to one or
more directors or officers of the Company. All determinations, decisions,
interpretations and other actions by the Committee and any delegate of the
Committee shall be final, conclusive and binding on all persons and shall be
given the maximum deference permitted by law.

Without amending this Plan, the Committee may grant
Awards or other awards to eligible persons who are foreign nationals on such
terms and conditions different from those specified in this Plan as may, in the
judgment of the Committee, be necessary or desirable to foster and promote
achievement of the purposes of this Plan and, in furtherance of such purposes,
the Committee may make such modifications, amendments, procedures, subplans and
the like as may be necessary or advisable to comply with provisions of laws or
regulations or conform to the requirements to operate the Plan in a tax
advantageous manner in other countries or jurisdictions in which the Employer
operates or has employees.

SECTION 13. WITHHOLDING

The Employer may require the Participant to pay to the
Employer the amount of (a) any taxes that the Employer is required by
applicable federal, state, local or foreign law to withhold with respect to the
grant, vesting or exercise of an Award (“tax withholding obligations”) and (b) any
amounts due from the Participant to the Employer (“other obligations”). The
Company shall not be required to issue any shares

 7
 

of Common Stock or
otherwise settle an Award under the Plan until such tax withholding obligations
and other obligations are satisfied.

The Committee may permit or require a Participant to
satisfy all or part of the Participant’s tax withholding obligations and other
obligations by (a) paying cash to the Employer, (b) having the
Employer withhold an amount from any cash amounts otherwise due or to become
due from the Employer to the Participant, (c) having the Employer withhold
a number of shares of Common Stock that would otherwise be issued to the
Participant (or become vested in the case of Restricted Stock) having a Fair
Market Value equal to the tax withholding obligations and other obligations, or
(d) surrendering a number of shares of Common Stock the Participant
already owns having a value equal to the tax withholding obligations.

SECTION 14. ASSIGNABILITY

No Award or interest in an Award may be sold,
assigned, pledged (as collateral for a loan or as security for the performance
of an obligation or for any other purpose) or transferred by a Participant or
made subject to attachment or similar proceedings otherwise than by will or by
the applicable laws of descent and distribution, except to the extent the
Participant designates one or more beneficiaries on a Company-approved form who
may exercise the Award or receive payment under the Award after the Participant’s
death. During a Participant’s lifetime, an Award may be exercised only by the
Participant. Notwithstanding the foregoing, the Committee, in its sole
discretion, may establish procedures and processes with regard to beneficiary
designation including eliminating the ability to designate a beneficiary and
may permit a Participant to assign or transfer an Award; provided, however,
that any Award so assigned or transferred shall be subject to all the terms and
conditions of the Plan and the instrument evidencing the Award.

SECTION 15. ADJUSTMENTS

15.1   Adjustment for Change in Common
Stock

In the event of a  reorganization,
recapitalization, stock split, stock dividend, spin-off, combination,
corporate exchange, merger, consolidation or other change in the Common Stock
or any distribution to shareholders other than regular cash dividends or any
transaction determined in good faith by the Committee to be similar to the
foregoing, the Committee shall make appropriate equitable changes in the number
and type of shares of Common Stock authorized by this Plan, the number and type
of shares of Common Stock covered by outstanding Awards and the Option exercise
price specified therein, if any, and the maximum number of shares of Common
Stock for which Awards may be granted during a calendar year to a Participant. Subject
to Section 15.2, if the Company consolidates with or merges into any
entity or reclassifies or reorganizes its shares of Common Stock, or if there
shall occur any share exchange or other similar extraordinary transaction, in
each case pursuant to which all of the outstanding shares of Common Stock are
converted into, exchanged or otherwise transferred for, stock or other
securities, rights, options, assets, notes, cash or other property, then the
Participants shall have the right thereafter to receive, upon exercise of their
Options (at the same aggregate Option Price), the number of shares of stock and
other securities, rights, options, assets, notes, cash and other property to
which a holder of the number of shares of Common Stock into which the Option
could have been exercised immediately prior to such event (without regard to
any limitations on exercisability pursuant to this Plan) would have been
entitled upon such transaction and the Company shall make lawful provision
therefore as a part of such consolidation, merger, reclassification,
reorganization, share exchange or other similar extraordinary transaction.

15.2   Change in Control

In connection with a Change in Control, the Committee
will determine to what extent, if any, the Awards shall become cancelled
subject to the satisfaction of the following condition:  each holder of

 8
 

Awards, whether or not
vested and exercisable, will be given a reasonable opportunity to exercise such
rights prior to the consummation of a Change in Control and participate in such
Change in Control as holders of Common Stock. Without limitation on the
foregoing Participant right to exercise Awards prior to the Change in Control,
the Committee may, but shall not be obligated to, make provision in connection
with a Change in Control for a cash payment to each holder of Awards in
consideration for the cancellation of such Awards which may equal the excess,
if any, of the value of the consideration to be paid in the transaction to
holders of the same number of shares of Common Stock subject to such Awards (or
if no consideration is paid in any such transaction, the Fair Market Value of
shares of Common Stock subject to such Awards) over the aggregate Option
exercise price, if any, of such Awards.

The Committee shall have the discretion, exercisable
at any time before a sale, merger, consolidation, reorganization, liquidation,
dissolution or change of control of the Company, as defined by the Committee,
to take such further action as it determines to be necessary or advisable with
respect to Awards. Such authorized action may include (but shall not be limited
to) establishing, amending or waiving the type, terms, conditions or duration
of, or restrictions on, Awards so as to provide for earlier, later, extended or
additional time for exercise, lifting restrictions and other modifications, and
the Committee may take such actions with respect to all Participants, to
certain categories of Participants or only to individual Participants. The
Committee may take such action before or after granting Awards to which the
action relates and before or after any public announcement with respect to such
sale, merger, consolidation, reorganization, liquidation, dissolution or change
of control that is the reason for such action.

Notwithstanding
any other provision of this Plan to the contrary, unless the Committee shall
determine otherwise at the time of grant with respect to a particular Award, in
the event of a Change in Control:

(a)                                  any
Options and Stock Appreciation Rights outstanding as of the date such Change in
Control is determined to have occurred, and which are not then exercisable and
vested, shall become fully exercisable and vested;

(b)                                 any
restrictions and deferral limitations applicable to any Restricted Stock or
Stock Units shall lapse, and such Restricted Stock or Stock Units shall become
free of all restrictions and limitations and become fully vested and
transferable;

(c)                                  all
Performance Stock and Performance Units shall be considered to be earned and
payable in full, and any deferral or other restriction shall lapse and such
Performance Stock and Performance Units shall be immediately settled or
distributed; and

(d)                                 any
restrictions and deferral limitations and other conditions applicable to any
other Awards shall lapse, and such other Awards shall become free of all
restrictions, limitations or conditions and become fully vested and
transferable.

15.3   No Limitations

The grant of Awards shall in no way affect the Company’s
right to adjust, reclassify, reorganize or otherwise change its capital or
business structure or to merge, consolidate, dissolve, liquidate or sell or
transfer all or any part of its business or assets.

SECTION 16. AMENDMENT
AND TERMINATION

16.1   Amendment, Suspension or
Termination

The Board may amend, suspend or terminate this Plan or
any portion of this Plan at any time and in such respects as it shall deem
advisable; provided, however, that, to the extent required by applicable law,
regulation or stock exchange rule, stockholder approval shall be required for
any amendment to this Plan.

 9
 

Subject to Section 16.3, the Board or the
Committee may amend the terms of any outstanding Award, prospectively or
retroactively; provided, however, that, to the extent that any such amendment
constitutes a “repricing” under applicable law, regulation, stock exchange rule or
generally accepted accounting principle, stockholder approval shall be required
for such amendment.

16.2   Term of the Plan

Unless sooner terminated as provided herein, this Plan
shall terminate ten years from the date this Plan was approved by shareholders
of the Company. After this Plan is terminated, no future Awards may be granted,
but Awards previously granted shall remain outstanding in accordance with their
applicable terms and conditions and this Plan’s terms and conditions.

16.3   Consent of Participant

The amendment, suspension or termination of this Plan
or a portion thereof or the amendment of an outstanding Award shall not,
without the Participant’s consent, materially adversely affect any rights under
any Award theretofore granted to the Participant under this Plan. Notwithstanding
the foregoing, any adjustments made pursuant to Section 15 or Section 5.3
shall not be subject to these restrictions.

SECTION 17. GENERAL

17.1   No Individual Rights

No individual or Participant shall have any claim to
be granted any Award under the Plan, and the Company has no obligation for
uniformity of treatment of Participants under the Plan.

Furthermore, nothing in the Plan or any Award granted
under the Plan shall be deemed to constitute an employment contract or confer
or be deemed to confer on any Participant any right to continue in the employ
of, or to continue any other relationship with, the Employer or limit in any
way the right of the Employer to terminate a Participant’s employment or other
relationship at any time, with or without cause.

17.2   No Rights as a Stockholder

Unless otherwise provided by the Committee or in the
instrument evidencing the Award or in a written employment, services or other
agreement, no Award shall entitle the Participant to any cash dividend, voting
or other right of a stockholder unless and until the date of issuance under the
Plan of the shares of Common Stock that are the subject of such Award.

17.3   Issuance of Shares

Notwithstanding any other provision of this Plan, the
Company shall have no obligation to issue or deliver any shares of Common Stock
under this Plan or make any other distribution of benefits under this Plan
unless, in the opinion of the Company’s counsel, such issuance, delivery or
distribution would comply with all applicable laws (including, without
limitation, the requirements of the Securities Act of 1933, as amended, or the
laws of any state or foreign jurisdiction) and the applicable requirements of
any securities exchange or similar entity.

The Company shall be under no obligation to any
Participant to register for offering or resale or to qualify for exemption
under the Securities Act of 1933, as amended, or to register or qualify under
the laws of any state or foreign jurisdiction, any shares of Common Stock,
security or interest in a security paid or issued under, or created by, this
Plan, or to continue in effect any such registrations or qualifications if
made.

As a condition to the exercise of an Option or any
other receipt of shares of Common Stock pursuant to an Award under this Plan,
the Company may require (a) the Participant to represent and warrant at
the

 10
 

time of any such exercise
or receipt that such shares of Common Stock are being purchased or received
only for the Participant’s own account and without any present intention to
sell or distribute such shares and (b) such other action or agreement by
the Participant as may from time to time be necessary or deemed appropriate by
the Committee to comply with the federal, state and foreign securities laws. At
the option of the Company, a stop-transfer order against any such shares of
Common Stock may be placed on the official stock books and records of the
Company, and a legend indicating that such shares of Common Stock may not be
pledged, sold or otherwise transferred, unless an opinion of counsel is
provided (concurred in by counsel for the Company) stating that such transfer
is not in violation of any applicable law or regulation, may be stamped on
stock certificates to ensure exemption from registration. The Committee may
also require the Participant to execute and deliver to the Company a purchase
agreement or such other agreement as may be in use by the Company at such time that
describes certain terms and conditions applicable to the shares of Common
Stock.

To the extent this Plan or any instrument evidencing
an Award provides for issuance of stock certificates to reflect the issuance of
shares of Common Stock, the issuance may be effected on a noncertificated
basis, to the extent not prohibited by applicable law or the applicable rules of
any stock exchange.

17.4   Indemnification

Each person who is or shall have been a member of the
Board, the Committee, a committee appointed by the Board or Committee, or an
officer of the Company to whom authority was delegated in accordance with Section 3
shall be indemnified and held harmless by the Company against and from any
loss, cost, liability or expense that may be imposed upon or reasonably
incurred by such person in connection with or resulting from any claim, action,
suit or proceeding to which such person may be a party or in which such person
may be involved by reason of any action taken or failure to act under this Plan
and against and from any and all amounts paid by such person in settlement
thereof, with the Company’s approval, or paid by such person in satisfaction of
any judgment in any such claim, action, suit or proceeding against such person;
provided, however, that such person shall give the Company an opportunity, at
its own expense, to handle and defend the same before such person undertakes to
handle and defend it on such person’s own behalf, unless such loss, cost,
liability or expense is a result of such person’s own willful misconduct or
except as expressly provided by statute.

The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such person may be
entitled under the Company’s certificate of incorporation or bylaws, as a
matter of law, or otherwise, or of any power that the Company may have to
indemnify or hold harmless.

17.5   Participants in Other Countries

The Committee shall have the authority to adopt such
modifications, procedures and subplans as may be necessary or desirable to
comply with provisions of the laws of any countries in which the Employer may
operate to ensure the viability of the benefits from Awards granted to
Participants employed in such countries, to meet the requirements of local laws
that permit the Plan to operate in a qualified or tax-efficient manner, to
comply with applicable foreign laws and to meet the objectives of the Plan.

17.6   No Trust or Fund

The Plan is intended to constitute an “unfunded” plan.
Nothing contained herein shall require the Company to segregate any monies or
other property, or shares of Common Stock, or to create any trusts, or to make
any special deposits for any immediate or deferred amounts payable to any
Participant, and no Participant shall have any rights that are greater than
those of a general unsecured creditor of the Company.

 11
 

17.7   Successors

All obligations of the Company under the Plan with
respect to Awards shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all the business
and/or assets of the Company.

17.8   Severability

If any provision of the Plan or any Award is
determined to be invalid, illegal or unenforceable in any jurisdiction, or as
to any person, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or, if it cannot be so construed or
deemed amended without, in the Committee’s determination, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to
such jurisdiction, person or Award, and the remainder of the Plan and any such
Award shall remain in full force and effect.

17.9   Delaware Law to Govern

This Plan shall be governed by and construed in
accordance with the laws of the State of Delaware without regard to internal
conflict rules.

17.10                 Law Requirements

The granting of Awards and the issuance of shares of
Common Stock under the Plan is subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.

 12

APPENDIX I

“Acquired Entity” means any entity acquired by the Company or a
Subsidiary or with which the Company or a Subsidiary merges or combines.

“Award” means any Option, Restricted Stock, Stock Unit,
Performance Stock, Performance Unit, Cash-Based Award, Stock Appreciation
Right, dividend equivalent or other incentive payable in cash or in shares of
Common Stock as may be designated by the Committee from time to time.

“Board” means the Company’s board of directors.

“Cash-Based Awards” means an Award granted under Section 9.

“Cause” shall
have the meaning assigned to such term in any individual Participant’s written
employment arrangements with the Company or any of its Subsidiaries, and
additionally, in any event shall include (or in the absence of any such written
employment arrangement shall mean) (a) the commission by the Participant
of a felony (or a crime involving moral turpitude); (b) theft, conversion, embezzlement or misappropriation by the
Participant of funds or other assets of the Employer or any other act of fraud
or dishonesty with respect to the Employer (including acceptance of any bribes
or kickbacks or other acts of self-dealing); (c) intentional, negligent or
unlawful misconduct by the Participant which causes harm to the Employer or exposes
the Employer to a substantial risk of harm; (d) the violation by the
Participant of any law regarding employment discrimination or sexual
harassment; (e) the failure by the Participant to comply with any material
policy generally applicable to employees of the Employer; (f) the
Participant’s failure to follow the reasonable directives of the Board or the
Chief Executive Officer; (g) the unauthorized dissemination by the
Participant of confidential information; (h) breach of any fiduciary duty
owed to the Employer, including without limitation, engaging in directly
competitive acts while employed by the Employer; or (i) any other material
breach by the Participant of any employment or noncompete agreement.

“Change in Control” unless the Committee determines otherwise with
respect to an Award at the time the Award is granted, means the occurrence of
any of the following:

(a)                                  Any
“Person” (having the meaning ascribed to such term in Section 3(a)(9) of
the Securities Exchange Act of 1934, as amended (“1934 Act”) and used in
Sections 13(d) and 14(d) thereof, including a “group” within the
meaning of Section 13(d)(3)) has or acquires “Beneficial Ownership”
(within the meaning of Rule 13d-3 under the 1934 Act) of thirty
percent (30%) or more of the combined voting power of the Company’s then
outstanding voting securities entitled to vote generally in the election of
directors (“Voting Securities”); provided, however, that in determining whether
a Change in Control has occurred, Voting Securities which are held or acquired
by the following:  (i) the Company
or any of its Subsidiaries or (ii) an employee benefit plan (or a trust
forming a part thereof) maintained by the Company or any of its subsidiaries
(the persons or entities described in (i) and (ii) shall collectively
be referred to as the “Excluded Group”), shall not constitute a Change in
Control.

(b)                                 At
any time during a period of two consecutive years, the individuals who at the
beginning of such period constituted the Board (the “Incumbent Board”) cease
for any reason to constitute more than fifty percent (50%) of the Board;
provided, however, that if the election, or nomination for election by the
Company’s stockholders, of any new director was approved by a vote of more than
fifty percent (50%) of the directors then comprising the Incumbent Board, such
new director shall, for purposes of this subsection (b), be considered as
though such person were a member of the Incumbent Board; provided, further,
however, that no individual shall be considered a member of the Incumbent Board
if such individual initially assumed office as a result of (i) either an
actual “Election Contest” (as described in the former Rule 14a-11
promulgated under the 1934 Act) or other actual solicitation of proxies or
consents by or on behalf of a Person other

 13
 

than the Incumbent Board
(a “Proxy Contest”), or (ii) by reason of any agreement intended to avoid
or settle any actual or threatened Election Contest or Proxy Contest.

(c)                                  Immediately
prior to a consummation of a merger, consolidation or reorganization or similar
event involving the Company, whether in a single transaction or in a series of
transactions (“Business Combination”), unless, following such Business
Combination:

(i)                                     the
Persons with Beneficial Ownership of the Company, immediately before such
Business Combination, have Beneficial Ownership of more than fifty percent
(50%) of the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors of the corporation (or
in the election of a comparable governing body of any other type of entity)
resulting from such Business Combination (including, without limitation, an
entity which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiaries) (the “Surviving Company”) in substantially the same
proportions as their Beneficial Ownership of the Voting Securities immediately
before such Business Combination;

(ii)                                  the
individuals who were members of the Incumbent Board immediately prior to the
execution of the initial agreement providing for such Business Combination
constitute more than fifty percent (50%) of the members of the board of
directors (or comparable governing body of a noncorporate entity) of the
Surviving Company; and

(iii)                               no Person (other than a
member of the Excluded Group or any Person who immediately prior to such
Business Combination had Beneficial Ownership of thirty percent (30%) or more
of the then Voting Securities) has Beneficial Ownership of thirty percent (30%)
or more of the then combined voting power of the Surviving Company’s then
outstanding voting securities.

(d)                                 Immediately
prior to the assignment, sale, conveyance, transfer, lease or other disposition
of all or substantially all of the assets of the Company to any Person (other
than a member of the Excluded Group) unless, immediately following such
disposition, the conditions set forth in paragraph (c)(i), (ii) and (iii) above
will be satisfied with respect to the entity which acquires such assets.

(e)                                  Approval
by the Company’s stockholders of a liquidation or dissolution of the Company or
the occurrence of a liquidation or dissolution of the Company.

“Code” means the Internal Revenue Code of 1986, as it may
be amended from time to time.

“Committee” means (a) the Chief Executive Officer with
respect to Awards to employees of the Employer other than executive officers or
directors of the Company, (b) the Compensation Committee of the Board with
respect to Awards to executive officers, and (c) the Governance Committee
of the Board with respect to Awards to directors of the Company.

“Common Stock” means the Company’s class of capital stock designed
as Common Stock, par value one cent ($0.01) per share, or, in the event that
the outstanding shares of Common Stock are after the date this Plan is approved
by the shareholders of the Company, recapitalized, converted into or exchanged
for different stock or securities of the Company, such other stock or
securities.

“Disability” means disability as defined in the Company’s long-term
disability plan or as otherwise determined by the Committee.

“Employer” means individually or collectively Dade Behring
Holdings, Inc. or its Subsidiaries.

“Fair Market Value” of a share of Common Stock means on a given date (a) if
the principal market for the Common Stock is the Nasdaq stock market, a
national securities exchange or other recognized national market or service
reporting sales, the closing price of a share of Common Stock on the date of
the determination on the principal market on which the Common Stock is then
listed or admitted to trading, (b) if the Common Stock is not listed on
the Nasdaq stock market, a national securities exchange or other recognized

 14
 

national
market or service reporting sales, the closing price of a share of Common Stock
on the date of the determination as reported by the system then regarded as the
most reliable source of such quotations, (c) if the Common Stock is listed
on a domestic stock exchange or market or quoted in a domestic market or
service, but there are not reported sales or quotations, as the case may be, on
the given date, the value determined pursuant to (a) or (b) above
using the reported sale prices or quotations on the last previous day on which
so reported or (d) if none of the foregoing clauses apply, the fair market
value of a share of Common Stock as determined in good faith by the Board and
stated in writing in a notice delivered to the holders of the Common Stock
involved.

“Option” means any option enabling the holder thereof to
purchase a share of Common Stock from the Company granted pursuant to the
provisions of this Plan.

“Participant” means any employee, office or director of the
Employer to whom an Award is granted.

“Performance Goal” has the meaning set forth in Section 11.1.

“Performance Stock” means an Award granted under Section 8.1.

“Performance Unit” means an Award granted under Section 8.2.

“Plan” means Dade Behring 2004 Incentive Compensation
Plan.

“Award Shares” with respect to a Participant, means Common Stock
issuable to such Participant with respect to an Award or upon exercise of an
Award granted hereunder.

“Restricted Stock” means an Award of shares of Common Stock granted
under Section 7, the rights of ownership of which may be subject to
restrictions prescribed by the Committee.

“Stock
Appreciation Right” means an
Award providing a right to stock appreciation granted under Section 10.

“Stock Unit” means an Award granted under Section 7
denominated in units of Common Stock.

“Subsidiary” shall mean (a) any corporation of which the
outstanding equity interests having at least a majority of votes entitled to be
cast in the election of the directors under ordinary circumstances shall at the
time be owned, directly or indirectly, by the Company or (b) any other
type of business entity of which at least a majority of the voting interest
under ordinary circumstances is at the time, directly or indirectly, owned by
the Company.

“Substitute Awards” means Awards granted or shares of Common Stock
issued by the Company in assumption of, or in substitution or exchange for,
awards previously granted by a company acquired by the Employer or with which
the Employer combines.

“Termination of
Service” means a termination
of employment or service relationship with the Company or a Subsidiary for any
reason, whether voluntary or involuntary, including by reason of death,
Disability or retirement. Any question as to whether and when there has been a
Termination of Service for the purposes of an Award and the cause of such
Termination of Service shall be determined by the Committee, whose
determination shall be conclusive and binding. Transfer of a Participant’s
employment or service relationship between the Company and any Subsidiary shall
not be considered a Termination of Service for purposes of an Award. Unless the
Committee determines otherwise, a Termination of Service shall be deemed to
occur if the Participant’s employment or service relationship is with an entity
that has ceased to be a Subsidiary.

 15

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