Document:

Exhibit 10.6

 

MANAGEMENT INCENTIVE PLAN

 

CHARLES
RIVER LABORATORIES HOLDINGS, INC.

1999
MANAGEMENT INCENTIVE PLAN

 

SECTION 1. PURPOSE. The purpose of the Charles River Laboratories
Holdings, Inc. 1999 Management
Incentive Plan (the “PLAN”) is to promote the interests of Charles River Laboratories Holdings, Inc. (the “COMPANY”)
and its stockholders by (i)
attracting and retaining exceptional key employees of the Company, its Subsidiaries and its Affiliates
(as defined below) and others; (ii)
motivating such individuals by means of performance-related incentives toachieve longer-range performance goals;
and (iii) enabling such individuals to participate in the long-term growth and financial success of the
Company.

 

SECTION 2. DEFINITIONS. As used in the Plan, the following terms  shall have the meanings set forth below:

 

“AFFILIATE” means, with respect to any Person, any other Person  directly or indirectly controlling, controlled
by, or under common control with such
Person; PROVIDED that no stockholder of the Company shall be deemed an Affiliate of any other stockholder of the
Company solely by reason of any investment
in the Company. For purposes of this definition, the term “CONTROL” (including with correlative meanings, the
terms “CONTROLLING”, “CONTROLLED BY” and “UNDER COMMON CONTROL WITH”), when used with respect to any Person,
means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through
the ownership of voting securities,
by contract or otherwise.

 

“AWARD AGREEMENT” means any written agreement, contract or other  instrument or document evidencing any Option,
which may, but need not, be executed
or acknowledged by a Participant.

 

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

 

“CAUSE” means, with respect to any Participant, “cause” as defined in
such Participant’s Employment
Agreement or Award Agreement, or if not so defined:

 

(i) such Participant’s failure substantially to
perform his  or her duties
(other than as a result of total or partial incapacity due to physical or mental illness);

 

(ii) such Participant’s conviction of a felony
arising from,  or any act
of, fraud, embezzlement or willful dishonesty by such Participant in relation to the business or
affairs of the Company and any
Subsidiary or Affiliate thereof, or any other felonious conduct on the part of such

 

 

Participant that is
demonstrably detrimental to the best interests of the Company or any Subsidiary
or Affiliate thereof;

 

(iii) such Participant’s being repeatedly under the
influence of illegal drugs or alcohol while performing his duties; or

 

(iv) any other willful act of such Participant which
is  demonstrably injurious
to the financial condition or business reputation of the Company or any Subsidiary or Affiliate thereof asdetermined in the reasonable discretion
of the Compensation Committee, including
such Participant’s breach of the provisions of any noncompetition, nonsolicitation or
confidentiality covenant (whether or not contained in this Agreement) in favor of the Company or any Subsidiary or Affiliate thereof binding upon
such Participant.

 

“CHANGE OF CONTROL” means:

 

(i) any “person” (as such term is used in Section
3(a)(9) and  13(d)(3) of
the Exchange Act) other than (A) the DLJ Entities and/or their respective Permitted Transferees (as
defined in the Investors’ Agreement)
or (B) any “group” (within the meaning of such Section 13(d)(3)) of which any of the DLJ Entities is
a part, acquires, directly or
indirectly, by virtue of the consummation of any purchase, merger or other combination, securities of the
Company (or its successor)
representing more than 51% of the combined voting power of the Company’s (or its successor’s) then
outstanding voting securities with
respect to matters submitted to a vote of the stockholders generally; or

 

(ii) a sale or transfer by the Company or any of its
Subsidiaries of substantially all
of the stock or consolidated assets of the Company and its Subsidiaries to an entity which is not an Affiliate of the Company prior to such sale or
transfer.

 

“CODE” means the Internal Revenue Code of 1986, as amended.

 

“COMPENSATION COMMITTEE” means a committee of the Board designated by
the Board to administer the Plan
and composed of not less than the minimum number of persons from time to time required by Rule 16b-3 and Section
162(m), each of whom, to the
extent necessary to comply with Rule 16b-3 and Section 162(m) only, is a “Non-Employee Director” and
an “Outside Director” within the meaning
of Rule 16b-3 and Section 162(m), respectively.

 

 

“DISABILITY” means, with respect to any Participant, “disability” as defined
in such Participant’s Employment Agreement or Award Agreement, or if not so
defined:

 

(i) any permanent physical or mental incapacity or
disability  rendering such
Participant unable or unfit to perform effectively the duties and obligations of his employment or to
participate effectively and
actively in the management of the Company (or, if applicable, any Subsidiary or Affiliate thereof); or

 

(ii) any illness, accident, injury, physical or
mental  incapacity or other
disability, where such condition has rendered such Participant unable or unfit to perform
effectively the duties and obligations
of his or her employment or to participate effectively and actively in the management of the Company (or,
if applicable, any Subsidiary or
Affiliate thereof) for a period of at least 6 consecutive months or 12 months in any 24-month period (in
either case, as determined in the
good faith judgment of the Compensation Committee).

 

“EMPLOYEE” means an employee of the Company or any Subsidiary or Affiliate
thereof.

 

“EMPLOYMENT AGREEMENT” means an employment, severance, consulting or similar
agreement between the Company or any Subsidiary or Affiliate thereof and a Participant.

 

“EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended.

 

“FAIR MARKET VALUE” means:

 

(i)   with
respect to a Share:

 

(A) as of the consummation of the transactions
contemplated by the
Recapitalization Agreement dated as of July 25, 1999 by and among CRL Acquisition LLC, the Company, Bausch & Lomb Incorporated, CRL Holdings,
Inc., Charles River Laboratories,
Inc., Charles River SPAFAS, Inc., Bausch & Lomb International, Inc., Wilmington Partners,
L.P., Bausch & Lomb Canada,
Inc., and DLJ Merchant Banking Partners II, L.P., $10.27 per share;

 

(B) if the Shares are traded on an exchange or
market, as of any given date or
dates, the average reported closing
price of such Share on such exchange or market as is the principal trading

 

 

market for the Shares for the
trading day immediately preceding such date or dates; or

 

(C) if the Shares are not traded on an exchange or
market on the applicable date, as
determined by the Compensation
Committee in good faith taking into account as appropriate recent sales of the Shares, recent valuations of the Shares and such other factors as the
Compensation Committee shall in
its discretion deem relevant or appropriate.

 

(ii) with respect to an Option, for each Share
underlying such  Option,
the Fair Market Value per Share as determined under clause (i) less the exercise price per Share.

 

“GOOD REASON” means, with respect to any Participant, “good reason” as
defined in such Participant’s
Award Agreement or Employment Agreement, or if not so defined:

 

(i) any failure by the Company to comply with any of
the  provisions of this
Plan or such Participant’s Award Agreement or Employment Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the
Company promptly after receipt of notice thereof given by such Participant;

 

(ii) the material diminution of such Participant’s
position  (including
status, offices, titles and reporting relationships), duties or responsibilities as in effect during the effectiveness
of such Participant’s Award
Agreement, excluding an isolated, insubstantial and inadvertent action not taken in bad faith and
which is remedied by the Company
promptly after receipt of notice thereof given by such Participant; or

 

(iii) any purported termination by the Company of
such Participant’s employment, other than for Cause.

 

“INVESTORS’ AGREEMENT” means the Investors’ Agreement dated as of September
29, 1999 among the Company and the several Stockholders (as defined therein)
from time to time parties thereto.

 

“OPTION” means a right to purchase Shares from the Company that is granted
under Section 6 of the Plan.

 

“PARTICIPANT” means any Employee, non-employee director of the Company of
any Subsidiary or Affiliate thereof or consultant to the Company or

 

 

any Subsidiary or Affiliate thereof selected
by the Compensation Committee to receive an Option under the Plan (and, to the
extent applicable, any heirs or legal representatives thereof).

 

“PERMITTED TRANSFEREE” shall have the meaning assigned to it in the Investors’
Agreement.

 

“PERSON” means any individual, corporation, limited liability company, partnership,
association, joint-stock company, trust, unincorporated organization,
government or political subdivision thereof or other entity.

 

“RULE 16B-3” means Rule 16b-3 as promulgated and interpreted by the SEC under
the Exchange Act, or any successor rule or regulation thereto as in effect from
time to time.

 

“SEC” means the Securities and Exchange Commission or any successor thereto.

 

“SECTION 162(M)” means Section 162(m) of the Code, or any successor section
thereto as in effect from time to time.

 

“SHARES” means (i) shares of common stock, par value $0.01 per share,
of the Company and any stock into
which its common stock may thereafter be converted or changed and/or (ii) such other securities as may be
designated by the Compensation
Committee from time to time.

 

“SUBSIDIARY” means, with respect to any Person, any corporation,  limited liability company, partnership,
association or other business entity of which:

 

(i) if a corporation, a majority of the total voting
power of  shares of stock
entitled (without regard to the occurrence of any contingency) to vote in the election of
directors thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the Subsidiaries of that Person or
a combination thereof; or

 

(ii) if a limited liability company, partnership,
association  or other
business entity, a majority of the partnership or other similar ownership interests thereof is at the
time owned or controlled, directly
or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof.

 

“SUBSTITUTE OPTIONS” means Options granted in assumption of, or in substitution
for, outstanding options previously granted by a company acquired by the
Company or with which the Company combines.

 

 

SECTION 3. ADMINISTRATION.

 

(a) AUTHORITY OF COMPENSATION COMMITTEE. The Plan shall be  administered by the Compensation Committee.
Subject to the terms of the Plan, applicable
law and contractual restrictions (including, to the extent applicable, any Employment Agreements)
affecting the Company, and in addition to other express powers and authorizations conferred on the Compensation
Committee by the Plan, the
Compensation Committee shall have full power and authority to:

 

(i)   designate
Participants;

 

(ii) determine the type or types of Options to be
granted to a Participant;

 

(iii) determine the number of Shares to be covered
by, or with  respect to which
payments, rights or other matters are to be calculated in connection with, Options;

 

(iv) determine the terms and conditions of any Option
and  Award Agreement;

 

(v) determine whether, to what extent and under what
circumstances Options may be
settled or exercised in cash, Shares, other securities, other Options or other property, or canceled, forfeited, or suspended and the method or
methods by which Options may be
settled, exercised, canceled, forfeited or suspended;

 

(vi) determine whether, to what extent and under what
circumstances cash, Shares, other
securities, other Options, other property
and other amounts payable with respect to an Option shall be deferred either automatically or at the
election of the holder thereof or
of the Compensation Committee;

 

(vii) determine whether, to what extent and under
what  circumstances cash,
Shares, other securities, other Options, other property and other amounts issued or payable with respect to an Optionshall be subject to restrictions on
transfer, assignment, pledge or other
disposition or alienation, and the nature of such restrictions;

 

(viii) interpret and administer the Plan and any
instrument or  agreement
relating to, or Option made under, the Plan;

 

 

(ix) establish, amend, suspend or waive such rules
and regulations and appoint such agents as it shall deem appropriate for the
proper administration of the Plan; and

 

(x) make any other determination and take any other
action that the Compensation Committee deems necessary or desirable for the administration
of the Plan.

 

(b) COMPENSATION COMMITTEE DISCRETION BINDING. Unless otherwise  expressly provided in the Plan, all
designations, determinations, interpretations
and other decisions under or with respect to the Plan or any Option shall be within the sole discretion of
the Compensation Committee, may be made
at any time and shall be final, conclusive and binding upon all Persons (including the Company or any Subsidiary or
Affiliate thereof, any Participant, any holder or beneficiary of any Option, any stockholder and any
Employee).

 

SECTION 4. SHARES AVAILABLE FOR OPTIONS.

 

(a) SHARES AVAILABLE. Subject to adjustment as provided in Section
4(b), the number of Shares with
respect to which Options may be granted under the Plan shall be 926,000. If, after the effective date of the Plan, any
Shares covered by an Option
granted under the Plan (other than a Substitute Option) or to which such an Option relates are forfeited,
or if such an Option is settled for
cash or otherwise terminates or is canceled without the delivery of Shares, then
the Shares covered by such Option, or to which such Option relates, or thenumber of Shares otherwise counted
against the aggregate number of Shares with respect to which Options may be granted, to the extent of any such
settlement, forfeiture,
termination or cancellation, shall again become Shares with respect to which Options may be granted. In addition,
Shares tendered in satisfaction or partial satisfaction of the exercise price
of any Option or any tax withholding obligations (other than the exercise price or tax withholding obligation
relating to a Substitute Option), will again become Shares with respect to
which Options may be granted.
Notwithstanding the foregoing and subject to adjustment as provided in Section 4(b), no Participant
may receive Options in any calendar year that relate to more than 300,000 Shares.

 

(b) ADJUSTMENTS. In the event that the Compensation Committee  determines that any dividend or other
distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock
split, reverse stock split,
reorganization, reclassification, merger, consolidation, split-up, spin-off, combination, repurchase,
or exchange of Shares or other securities
of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or
other similar corporate transaction or event affects the Shares such that an adjustment is determined by the
Compensation Committee

 

 

to be appropriate in order to prevent dilution
or enlargement of the benefits  or potential benefits intended to be made available under the Plan, then
the Compensation Committee shall,
in such manner as it may deem equitable, adjust any or all of:

 

(i) the number of Shares of the Company (or number
and kind of  other
securities or property) with respect to which Options may thereafter be granted;

 

(ii) the number of Shares or other securities of the
Company  (or number and
kind of other securities or property) subject to outstanding Options; and

 

(iii) the grant or exercise price with respect to any
Option,  or, if deemed
appropriate, make provision for a cash payment to the holder of an outstanding Option.

 

(c) SUBSTITUTE OPTIONS. Any Shares underlying Substitute Options shall
not be counted against the Shares
available for Options under the Plan.

 

(d) SOURCES OF SHARES DELIVERABLE UNDER OPTIONS. Any Shares delivered
pursuant to an Option may
consist, in whole or in part, of authorized and unissued Shares or of treasury Shares.

 

SECTION 5. ELIGIBILITY. Any Employee, non-employee director of the
Company or any Subsidiary or
Affiliate thereof or consultant to the Company or any Subsidiary or Affiliate thereof shall be
eligible to be designated a Participant.
Holders of options granted by a company that is acquired by the Company or with which the Company combines are
eligible for grants of Substitute Options
hereunder in connection with such acquisition or combination transaction.

 

SECTION 6. STOCK OPTIONS.

 

(a) GRANT. Subject to the provisions of the Plan and contractual  restrictions (including, to the extent
applicable, any Employment Agreements) affecting the Company, the Compensation Committee shall have sole and
complete authority to determine
the Participants to whom Options shall be granted, the number of Shares to be covered by each Option,
the exercise price therefor and the
conditions and limitations applicable to the exercise of the Option.

 

(b) EXERCISE PRICE. The Compensation Committee shall, in its sole
discretion, establish the
exercise price at the time each Option is granted; PROVIDED

 

 

that, except in the case of Substitute
Options, in no event shall the  exercise price per Share be less than the Fair Market Value of a Share
on the date of grant.

 

(c) EXERCISE. Each Option shall be exercisable at such times and  subject to such terms and conditions as the
Compensation Committee may, in its sole
discretion, specify in the applicable Award Agreement or thereafter. The Compensation
Committee may impose such conditions with respect to the exercise of Options, including without limitation, any
relating to the application of federal
or state securities laws, as it may deem necessary or advisable.

 

(d) PAYMENT. No Shares shall be delivered pursuant to any exercise of
an Option until payment in full of
the exercise price, or adequate provision therefor, is received by the Company. Such payment may be made: (i) in
cash; (ii) in Shares owned by the
Participant for at least six months (the value of such Shares shall be their Fair Market Value
on the date of exercise); (iii) by a
combination of cash and Shares owned by the Participant for at least six months;
(iv) if approved by the Compensation Committee, in accordance with a cashless exercise program; or (v) in such
other manner as permitted by the Compensation
Committee at the time of grant or thereafter.

 

SECTION 7. VESTING; TERMINATION OF EMPLOYMENT. Each Award Agreement
shall contain such terms as the
Committee may in its sole discretion determine concerning vesting, forfeiture, the Company’s rights of repurchase of
Shares acquired upon exercise of
an Option, and/or the effects of termination or suspension of a Participant’s employment upon the exercisability of any
Option granted thereunder.

 

SECTION 8. ACCELERATED VESTING. The Compensation Committee may,  in its sole discretion, provide in an Award
Agreement or at any other time for the
accelerated vesting of an Option in the event of a Change of Control.

 

SECTION 9. AMENDMENT AND TERMINATION.

 

(a) AMENDMENTS TO THE PLAN. The Board may amend, alter, suspend,  discontinue, or terminate the Plan or any
portion thereof at any time; PROVIDED that no such amendment, alteration, suspension, discontinuation or
termination shall be made without
stockholder approval if such approval is necessary to qualify for or comply with any tax or
regulatory status or requirement (including
any approval requirement which is a prerequisite for exemptive relief from Section 16(b) of the Exchange Act or
Section 162(m) of the Code) for which or with which the Board deems it necessary or desirable to qualify or
comply. Notwithstanding anything
to the contrary herein, the Compensation Committee may amend the Plan in such manner as may be
necessary so as to have the Plan

 

 

conform with local rules and regulations in
any jurisdiction outside the United States.

 

(b) AMENDMENTS TO OPTIONS. Subject to the terms of the Plan and  applicable law, the Compensation Committee may
waive any conditions or rights under,
amend any terms of, or alter, suspend, discontinue, cancel or terminate,any Option theretofore granted,
prospectively or retroactively; PROVIDED that any such waiver, amendment, alteration, suspension, discontinuance,
cancellation or termination that
would adversely affect the rights of a Participant or any holder or beneficiary of any Option
theretofore granted shall not to that extent be effective without the consent of such affected Participant, holder orbeneficiary.

 

(c) CANCELLATION. Any provision of this Plan or any Award Agreement to
the contrary notwithstanding, in
the event of a Change of Control or an offer to Participants generally relating to the acquisition of Shares, including
through purchase, merger or
otherwise, the Compensation Committee may cause any Option granted hereunder to be canceled in
consideration of a cash payment or alternative
Option made to the holder of such canceled Option.

 

SECTION 10. GENERAL PROVISIONS.

 

(a) DIVIDEND EQUIVALENTS. In the sole and complete discretion of the
Compensation Committee, an Option
may provide the Participant with dividends or dividend equivalents, payable in cash, Shares, other securities or other
property on a current or deferred basis.

 

(b) NON-TRANSFERABILITY OF OPTIONS. Except to the extent otherwise
provided in a Participant’s Award
Agreement, no Option shall be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by such Participant,
except by will or the laws of descent and distribution.

 

(c) NO RIGHTS TO OPTIONS. No Employee, Participant or other Person
shall have any claim to be granted
any Option, and there is no obligation for uniformity of treatment of Employees, Participants or holders or
beneficiaries of Options. The
terms and conditions of Options need not be the same with respect to each recipient.

 

(d) STOCK CERTIFICATES. Certificates, if any, issued in respect of
Shares shall, unless the
Compensation Committee otherwise determines, be registered in the name of the Participant or his or her Permitted
Transferees and, so long as a
Participant continues to be governed by any forfeiture provisions relating to the Shares, shall be
deposited by such Participant or Permitted
Transferee, together with a stock power endorsed in blank, with the Company. When such forfeiture conditions
lapse, the Company shall deliver such certificates to the Participant

 

 

upon request. Such stock certificate shall
carry such appropriate legends,  and such written instructions shall be given to the Company’s transfer
agent, as may be deemed necessary
or advisable by counsel to the Company in order to comply with the requirements of (i) the
Securities Act of 1933, as amended, any state securities laws or any other applicable laws and (ii) the Investors’
Agreement. Subject to the provisions of the Investors’ Agreement, all certificates for Shares or other securities
of the Company or any Subsidiary delivered under the Plan pursuant to any
Option or the exercise thereof
shall be subject to such stop transfer orders and other restrictions as the Compensation Committee may deem
advisable under the Plan or the rules, regulations and other requirements of the SEC or any exchange or market
upon which such Shares or other
securities of the Company are then listed and any applicable laws or rules or regulations, and
the Compensation Committee may cause
a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

(e) WITHHOLDING. A Participant may be required to pay to the Company
or any Subsidiary, and the
Company or any Subsidiary shall have the right and is hereby authorized to withhold from any Option,
from any payment due or transfer made
under any Option or under the Plan or from any compensation or other amountowing to a Participant the amount (in
cash, Shares, other securities, other Options or other property) of any applicable withholding taxes in
respect of an Option, its
exercise or any payment or transfer under an Option or under the Plan, and to take such other action as may be
necessary in the opinion of the Company
to satisfy all obligations for the payment of such taxes. The Compensation Committee may provide for
additional cash payments to holders of Options to defray or offset any tax arising from any such grant, lapse,
vesting or exercise of any
Option.

 

(f) AWARD AGREEMENTS. Each Option hereunder shall be evidenced by an
Award Agreement which shall be
delivered to the Participant and shall specify the terms and conditions of the Option and any rules applicable thereto.

 

(g) NO LIMIT ON OTHER COMPENSATION ARRANGEMENTS. This Plan is not
intended to be the exclusive
authority for the grant of options, stock or stock-based awards, and nothing contained in this Plan shall prevent the
Company or any Subsidiary or
Affiliate thereof from adopting or continuing in effect other compensation arrangements, which may,
but need not, provide for the grant of options, restricted stock, Shares and other types of awards provided
for hereunder (subject to
stockholder approval if such approval is required by applicable law). Any such arrangements may be
either generally applicable or applicable
only in specific cases.

 

 

(h) NO RIGHT TO EMPLOYMENT. The grant of an Option shall not be  construed as giving a Participant the right to
be retained in the employment or service
of the Company or any Subsidiary or Affiliate thereof. Further, the Company or any Subsidiary may at any time
dismiss a Participant from employment or service, free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or in any Award Agreement.

 

(i) RIGHTS AS A STOCKHOLDER. Subject to the provisions of the  applicable Option, no Participant or holder or
beneficiary of any Option shall have
any rights as a stockholder with respect to any Shares to be issued under the
Plan until he or she has become the holder of such Shares.

 

(j) GOVERNING LAW. The validity, construction, and effect of the Plan
and any rules and regulations
relating to the Plan and any Award Agreement shall be determined in accordance with the laws of
the State of Delaware.

 

(k) SEVERABILITY. If any provision of the Plan or any Option is or
becomes or is deemed to be
invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Option, or would disqualify the Plan
or any Option under any law
deemed applicable by the Compensation Committee, such provision shall be construed or deemed amended
to conform to the applicable laws,
or if it cannot be construed or deemed amended without, in the determination of the Compensation Committee,
materially altering the intent of the
Plan or the Option, such provision shall be stricken as to such jurisdiction, Person or Option, and the
remainder of the Plan and any such Option
shall remain in full force and effect.

 

(l) OTHER LAWS. The Compensation Committee may refuse to issue or
transfer any Shares or such other
consideration under an Option if, acting in its sole discretion, it determines that the issuance or transfer of such
Shares or such other
consideration might violate any applicable law or regulation or entitle the Company to recover the same under
Section 16(b) of the Exchange Act, and
any payment tendered to the Company by a Participant in connection therewithshall be promptly refunded to the
relevant Participant, holder or beneficiary. Without limiting the generality of the foregoing, no Option granted hereundershall be construed as an offer to sell
securities of the Company, and no such offer shall be outstanding, unless and until the Compensation Committee
in its sole discretion has
determined that any such offer, if made, would be in compliance with all applicable requirements of
the federal and state securities laws
and any other laws to which such offer, if made, would be subject.

 

(m) NO TRUST OR FUND CREATED. Neither the Plan nor any Option shall
create or be construed to create
a trust or separate fund of any kind or a fiduciary relationship between the Company or any Subsidiary and a
Participant or any

 

 

other Person. To the extent that any Person
acquires a right to receive  payments
from the Company or any Subsidiary or Affiliate thereof pursuant to an Option, such right shall be no greater than
the right of such unsecured general
creditor of the Company or such Subsidiary or Affiliate thereof.

 

(n) NO FRACTIONAL SHARES. No fractional Shares shall be issued or
delivered pursuant to the Plan or
any Option, and the Compensation Committee shall determine whether cash or other securities or other property shall
be paid or transferred in lieu of
any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise
eliminated.

 

(o) INVESTORS’ AGREEMENT TRANSFER RESTRICTIONS. A Participant shall,
as a condition precedent to the
exercise or settlement of an Option, execute an instrument agreeing to be bound by the terms of the Investors’
Agreement or, at the election of
the Company, a counterpart of the Investors’ Agreement. In any event, any Shares acquired upon exercise or settlement
shall be subject to the provisions in the Investors’ Agreement regardingrestrictions on transfer and the Company’s
rights to compel sales and repurchase
Shares.

 

(p) HEADINGS. Headings are given to the sections and subsections of
the Plan solely as a convenience
to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation
of the Plan or any provision thereof.

 

SECTION 11. TERM OF THE PLAN.

 

(a) EFFECTIVE DATE. The Plan shall be effective as of September 29,
1999, subject to approval by the
stockholders of the Company. Options may be granted hereunder prior to such stockholder approval, subject in all
cases, however, to such approval.

 

(b) EXPIRATION DATE. Unless otherwise expressly provided in the Plan
or in an applicable Award
Agreement, any Option granted hereunder may, and the authority of the Board or the Compensation
Committee to amend, alter, adjust, suspend,
discontinue or terminate any such Option or to waive any conditions or rights under any such Option shall, continue
after the authority for grant of new
Options hereunder has been exhausted.Exhibit 10.7

 

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

2000 INCENTIVE PLAN

as amended May 9, 2005

 

1.                                      ADMINISTRATION

 

Subject
to the express provisions of the Plan, the Administrator has the authority to
interpret the Plan; determine eligibility for and grant Awards; determine,
modify or waive the terms and conditions of any Award; prescribe forms, rules and
procedures (which it may modify or waive); and otherwise do all things
necessary to implement the Plan. Once an Award has been communicated in writing
to a Participant, the Administrator may not, without the Participant’s
consent, alter the terms of the Award so as to affect adversely the Participant’s
rights under the Award, unless the Administrator has expressly reserved the
right to do so. In the case of any Award intended to be eligible for the
performance-based compensation exception under Section 162(m), the
Administrator shall exercise its discretion consistent with qualifying the
Award for such exception.

 

2.                                      LIMITS ON AWARDS UNDER THE
PLAN

 

a.                                       NUMBER OF SHARES. A maximum of 9,889,000, shares of Stock may be
delivered in satisfaction of Awards under the Plan. For purposes of the
preceding sentence, shares that have been forfeited or cancelled in accordance
with the terms of the applicable Award and shares held back in satisfaction of
the exercise price or tax withholding requirements from shares that would
otherwise have been delivered pursuant to an Award shall not be considered to
have been delivered under the Plan. Also, the number of shares of Stock
delivered under an Award shall be determined net of any previously acquired
Shares tendered by the Participant in payment of the exercise price or of
withholding taxes.

 

b.                                      TYPE OF SHARES. Stock delivered by the Company under the Plan
may be authorized but unissued Stock or previously issued Stock acquired
by the Company and held in treasury. No fractional shares of Stock will be
delivered under the Plan.

 

c.                                       CERTAIN SHARE LIMITS. The maximum number of shares of Stock for
which Stock Options may be granted to any person from and after adoption
of the Plan and prior to June 5, 2010, the maximum number of shares of
Stock subject to SARs granted to any person during such period and the
aggregate maximum number of shares of Stock subject to other Awards that may be
delivered (or the value of which may be paid) to any person during such
period shall each be 2,000,000. For purposes of the preceding sentence, the
repricing of a Stock Option or SAR shall be treated as a new grant to the
extent required under Section 162(m). Subject to these limitations, each
person eligible to participate in the Plan shall be eligible to receive Awards
covering up to the

 

 

full
number of shares of Stock then available for Awards under the Plan. No Awards may be
granted under the Plan after June 5, 2010, but previously granted Awards may extend
beyond that date.

 

d.                                      OTHER AWARD LIMITS. No more than $2,000,000 may be paid to
any individual with respect to any Cash Performance Award (other than an Award
expressed in terms of shares of Stock or units representing Stock, which shall
instead be subject to the limit set forth in Section 2.c. above). In
applying the dollar limitation of the preceding sentence: (A) multiple
Cash Performance Awards to the same individual that are determined by reference
to performance periods of one year or less ending with or within the same
fiscal year of the Company shall be subject in the aggregate to one limit of
such amount, and (B) multiple Cash Performance Awards to the same
individual that are determined by reference to one or more multi-year
performance periods ending in the same fiscal year of the Company shall be
subject in the aggregate to a separate limit of such amount.

 

3.                                      ELIGIBILITY AND
PARTICIPATION

 

The
Administrator will select Participants from among those key Employees,
directors and other individuals or entities providing services to the Company
or its Affiliates who, in the opinion of the Administrator, are in a position
to make a significant contribution to the success of the Company and its
Affiliates. Eligibility for ISOs is further limited to those individuals whose
employment status would qualify them for the tax treatment described in
Sections 421 and 422 of the Code.

 

4.                                      RULES APPLICABLE TO
AWARDS

 

a.                                       ALL AWARDS

 

(1)                                  TERMS OF AWARDS. All Awards of Stock Options
and SARs granted hereunder shall have a term of not to exceed ten years from
the date of grant. The Administrator shall determine all other terms of all
Awards subject to the limitations provided herein.

 

(2)                                  PERFORMANCE CRITERIA. Where rights under an
Award depend in whole or in part on satisfaction of Performance Criteria,
actions by the Company that have an effect, however material, on such
Performance Criteria or on the likelihood that they will be satisfied will not
be deemed an amendment or alteration of the Award.

 

(3)                                  ALTERNATIVE SETTLEMENT. The Company may at
any time extinguish rights under an Award in exchange for payment in cash,
Stock (subject to the limitations of Section 2) or other property on such
terms as the Administrator determines, provided the holder of the Award
consents to such exchange.

 

(4)                                  TRANSFERABILITY OF AWARDS. Except as the
Administrator

 

2

 

otherwise
expressly provides, Awards may not be transferred other than by will or by
the laws of descent and distribution and during a Participant’s lifetime an
Award requiring exercise may be exercised only by the Participant (or in
the event of the Participant’s incapacity, the person or persons legally
appointed to act on the Participant’s behalf).

 

(5)                                  VESTING, ETC. Without limiting the generality
of Section 1, the Administrator may determine the time or times at
which an Award will vest (i.e., become free of forfeiture restrictions) or
become exercisable and the terms on which an Award requiring exercise will
remain exercisable. Unless the Administrator expressly provides otherwise:

 

(A)                              immediately upon the cessation of a Participant’s employment or other
service relationship with the Company and its Affiliates, all Awards (other
than Stock Options and SARs) held by the Participant (or by a permitted
transferee under Section 4.a.(4)) immediately prior to such cessation of
employment or other service relationship will be forfeited if not then vested
and, where exercisability is relevant, will cease to be exercisable;

 

(B)                                except as provided in (C) and (D) below, all Stock Options
and SARs held by a Participant (or by a permitted transferee under Section 4.a.(4))
immediately prior to the cessation of the Participant’s employment or other
service relationship for reasons other than death, to the extent then
exercisable, will remain exercisable for the lesser of (i) a period of
three months or (ii) the period ending on the latest date on which such
Stock Option or SAR could have been exercised without regard to this Section 4.a.(5),
and shall thereupon terminate;

 

(C)                                all Stock Options and SARs held by a Participant (or by a permitted
transferee under Section 4.a.(4)) immediately prior to the Participant’s
death, to the extent then exercisable, will remain exercisable for the lesser
of (i) the one-year period ending with the first anniversary of the
Participant’s death or (ii) the period ending on the latest date on which
such Stock Option or SAR could have been exercised without regard to this Section 4.a.(5),
and shall thereupon terminate; and

 

(D)                               all Stock Options and SARs held by a Participant (or by a permitted
transferee of the Participant under Section 4.a.(4)) whose cessation of
employment or other service relationship is determined by the Administrator in
its sole discretion to result from reasons which cast such discredit on the
Participant as to justify immediate termination of the Award shall immediately
terminate upon such cessation.

 

3

 

Unless
the Administrator expressly provides otherwise, a Participant’s “employment or
other service relationship with the Company and its Affiliates” will be deemed
to have ceased, in the case of an employee Participant, upon termination of the
Participant’s employment with the Company and its Affiliates (whether or not
the Participant continues in the service of the Company or its Affiliates in
some capacity other than that of an employee of the Company or its Affiliates),
and in the case of any other Participant, when the service relationship in
respect of which the Award was granted terminates (whether or not the
Participant continues in the service of the Company or its Affiliates in some
other capacity).

 

(6)                                  TAXES. The Administrator will make such
provision for the withholding of taxes as it deems necessary. The Administrator
may, but need not, hold back shares of Stock from an Award or permit a
Participant to tender previously owned shares of Stock in satisfaction of tax
withholding requirements. In no event shall Stock be tendered or held back by
the Company in excess of the minimum amount required to be withheld for
Federal, state, and local taxes.

 

(7)                                  DIVIDEND EQUIVALENTS, ETC. The Administrator may provide
for the payment of amounts in lieu of cash dividends or other cash
distributions with respect to Stock subject to an Award if and in such manner
as it deems appropriate.

 

(8)                                  RIGHTS LIMITED. Nothing in the Plan shall be
construed as giving any person the right to continued employment or service
with the Company or its Affiliates, or any rights as a shareholder except as to
shares of Stock actually issued under the Plan. The loss of existing or
potential profit in Awards will not constitute an element of damages in the
event of termination of employment or service for any reason, even if the
termination is in violation of an obligation of the Company or Affiliate to the
Participant.

 

(9)                                  SECTION 162(m). The Administrator in its
discretion may grant Performance Awards that are intended to qualify for
the performance-based compensation exception under Section 162(m) and
Performance Awards that are not intended so to qualify. In the case of an Award
intended to be eligible for the performance-based compensation exception under Section 162(m),
the Plan and such Award shall be construed to the maximum extent permitted by
law in a manner consistent with qualifying the Award for such exception. In the
case of a Performance Award intended to qualify as performance-based for the
purposes of Section 162(m), except as otherwise permitted by the
regulations at Treas. Regs. Section 1.162-27: (i) the Administrator
shall pre-establish in writing one or more specific Performance Criteria no
later than 90 days after the commencement of the period of service to which the
performance relates (or at such earlier time as is required to qualify the
Award as performance-based under Section 162(m)); (ii) payment of the
Award shall be conditioned upon prior certification by the Administrator that
the Performance Criteria have been satisfied; and (iii) if the Performance
Criteria with respect to the Award are

 

4

 

not
satisfied, no other Award shall be provided in substitution of the Performance
Award. The provisions of this Section 6.a.(9) shall be construed in a
manner that is consistent with the regulations under Section 162(m).

 

(10)                            OPTION AND SAR REPRICING. Options and SARs may not be repriced
without the approval of a majority of shares voting on the matter.

 

b.                                      AWARDS REQUIRING EXERCISE

 

(1)                                  TIME AND MANNER OF EXERCISE. Unless the
Administrator expressly provides otherwise, (a) an Award requiring
exercise by the holder will not be deemed to have been exercised until the
Administrator receives a written notice of exercise (in form acceptable to
the Administrator) signed by the appropriate person and accompanied by any
payment required under the Award; and (b) if the Award is exercised by any
person other than the Participant, the Administrator may require
satisfactory evidence that the person exercising the Award has the right to do
so.

 

(2)                                  EXERCISE PRICE. The Administrator shall
determine the exercise price of each Stock Option; PROVIDED, that each Stock
Option must have an exercise price that is not less than the fair market value
of the Stock subject to the Stock Option, determined as of the date of grant.
An ISO granted to an Employee described in Section 422(b)(6) of the
Code must have an exercise price that is not less than 110% of such fair market
value.

 

(3)                                  PAYMENT OF EXERCISE PRICE, IF ANY. Where the
exercise of an Award is to be accompanied by payment, the Administrator may determine
the required or permitted forms of payment, subject to the following: (a) all
payments will be by cash or check acceptable to the Administrator, or, if so
permitted by the Administrator (with the consent of the optionee of an ISO if
permitted after the grant), (i) through the delivery of shares of Stock
which have been outstanding for at least six months (unless the Administrator
approves a shorter period) and which have a fair market value equal to the
exercise price, (ii) by delivery of a promissory note of the person
exercising the Award to the Company, payable on such terms as are specified by
the Administrator, (iii) if the Stock is publicly traded, by delivery of
an unconditional and irrevocable undertaking by a broker to deliver promptly to
the Company sufficient funds to pay the exercise price, or (iv) by any
combination of the foregoing permissible forms of payment; and (b) where
shares of Stock issued under an Award are part of an original issue of
shares, the Award shall require an exercise price equal to at least the par
value of such shares.

 

(4)                                  GRANT OF STOCK OPTIONS. Each Stock Option
awarded under the Plan shall be deemed to have been awarded as a non-ISO (and
to have been so

 

5

 

designated
by its terms) unless the Administrator expressly provides for ISO treatment
that the Stock Option is to be treated as an ISO.

 

c.                                       AWARDS NOT REQUIRING EXERCISE

 

Awards
of Restricted Stock and Unrestricted Stock may be made in return for
either (i) services determined by the Administrator to have a value not
less than the par value of the Awarded shares of Stock, or (ii) cash or
other property having a value not less than the par value of the Awarded shares
of Stock plus such additional amounts (if any) as the Administrator may determine
payable in such combination and type of cash, other property (of any kind) or
services as the Administrator may determine.

 

d.                                      AWARDS OF RESTRICTED STOCK

 

Notwithstanding
Section 4(a)(5), (i) Awards of Restricted Stock that are not
Performance Awards shall vest (i.e., become free of forfeiture restrictions) in
no less than three years from the date of grant, and (ii) Awards of
Restricted Stock that are Performance Awards shall be subject to the attainment
of Performance Criteria which require at least 12 months to achieve; provided,
however that Awards of Restricted Stock aggregating not more than 10% of the
number of shares reserved for issuance under the Plan may be awarded
without the vesting requirements set forth in clauses (i) and (ii).

 

5.                                      EFFECT OF CERTAIN
TRANSACTIONS

 

a.                                       MERGERS, ETC. Immediately prior to a Covered
Transaction (other than an Excluded Transaction in which the outstanding Awards
have been assumed or substituted for as provided below), all outstanding Awards
shall vest and, if relevant, become exercisable, all Performance Criteria and
other conditions to any Award shall be deemed satisfied, and all deferrals
measured by reference to or payable in shares of Stock shall be accelerated.
Upon consummation of a Covered Transaction, all Awards then outstanding and
requiring exercise or delivery shall terminate unless assumed by an acquiring
or surviving entity or its affiliate as provided below.

 

In
the event of a Covered Transaction, the Administrator may provide for
substitute or replacement Awards from, or the assumption of Awards by, the
acquiring or surviving entity or its affiliates on such terms as the
Administrator determines.

 

b.                                      CHANGES IN AND DISTRIBUTIONS WITH RESPECT TO
THE STOCK

 

(1)                                  BASIC ADJUSTMENT PROVISIONS. In the event of
a stock dividend, stock split or combination of shares, recapitalization or
other change in the Company’s capital structure, the Administrator will make
appropriate adjustments to the maximum number of shares that may be
delivered under the Plan under Section 2.a. and to the maximum share
limits described in Section 2.c., and will also make appropriate
adjustments to the number and kind of shares of stock or securities subject to
Awards then outstanding or subsequently granted, any exercise prices relating
to Awards and any other

 

6

 

provision
of Awards affected by such change. For the avoidance of doubt, the 9,889,000
and 2,000,000 share limits expressed in Section 2 are intended to reflect
the increased number of shares resulting from the share exchange approved on June 5,
2000; accordingly, no further adjustment in those limits shall be made under
this Section 5.b. solely to reflect such exchange.

 

(2)                                  CERTAIN OTHER ADJUSTMENTS. The Administrator may also
make adjustments of the type described in paragraph (1) above to take into
account distributions to common stockholders other than those provided for in Section 5.a.
and 5.b.(1), or any other event, if the Administrator determines that
adjustments are appropriate to avoid distortion in the operation of the Plan
and to preserve the value of Awards made hereunder; PROVIDED, that no such
adjustment shall be made to the maximum share limits described in Section 2.c.,
or otherwise to an Award intended to be eligible for the performance-based
exception under Section 162(m), except to the extent consistent with that
exception, nor shall any change be made to ISOs except to the extent consistent
with their continued qualification under Section 422 of the Code.

 

(3)                                  CONTINUING APPLICATION OF PLAN TERMS. References
in the Plan to shares of Stock shall be construed to include any stock or
securities resulting from an adjustment pursuant to Section 5.b.(1) or
5.b.(2) above.

 

6.                                      LEGAL CONDITIONS ON DELIVERY
OF STOCK

 

The
Company will not be obligated to deliver any shares of Stock pursuant to the Plan
or to remove any restriction from shares of Stock previously delivered under
the Plan until the Company’s counsel has approved all legal matters in
connection with the issuance and delivery of such shares; if the outstanding
Stock is at the time of delivery listed on any stock exchange or national
market system, the shares to be delivered have been listed or authorized to be
listed on such exchange or system upon official notice of issuance; and all
conditions of the Award have been satisfied or waived. If the sale of Stock has
not been registered under the Securities Act of 1933, as amended, the Company may require,
as a condition to exercise of the Award, such representations or agreements as
counsel for the Company may consider appropriate to avoid violation of
such Act. The Company may require that certificates evidencing Stock
issued under the Plan bear an appropriate legend reflecting any restriction on
transfer applicable to such Stock.

 

7.                                      AMENDMENT AND TERMINATION

 

Subject
to the last sentence of Section 1, the Administrator may at any time
or times amend the Plan or any outstanding Award for any purpose which may at
the time be permitted by law, or may at any time terminate the Plan as to
any further grants of Awards; PROVIDED, that (except to the extent expressly
required or permitted by the Plan) no such amendment will, without the approval
of the stockholders of the Company, effectuate a change for which stockholder
approval is required in order for the Plan to continue to qualify under Section 422
of the Code and for Awards to be eligible for the performance-based exception
under Section 162(m). Any material amendment

 

7

 

to
the Plan approved by the Administrator shall be submitted to the Company’s
stockholders for approval prior to implementation.

 

8.                                      NON-LIMITATION OF THE
COMPANY’S RIGHTS

 

The
existence of the Plan or the grant of any Award shall not in any way affect the
Company’s right to Award a person bonuses or other compensation in addition to
Awards under the Plan.

 

9.                                      GOVERNING LAW

 

The
Plan shall be construed in accordance with the laws of The Commonwealth of
Massachusetts.

 

10.                               DEFINED TERMS.

 

The
following terms, when used in the Plan, shall have the meanings and be subject
to the provisions set forth below:

 

“ADMINISTRATOR”:
The Board or, if one or more has been appointed, the Committee. With respect to
ministerial tasks deemed appropriate by the Board or Committee, the term “Administrator”
shall also include such persons (including Employees) to whom the Board or
Committee shall have delegated such tasks.

 

“AFFILIATE”:
Any corporation or other entity owning, directly or indirectly, 50% or more of
the outstanding Stock of the Company, or in which the Company or any such
corporation or other entity owns, directly or indirectly, 50% of the
outstanding capital stock (determined by aggregate voting rights) or other
voting interests.

 

“AWARD”:
Any or a combination of the following:

 

(i)                                     Stock Options.

 

(ii)                                  SARs.

 

(iii)                               Restricted Stock.

 

(iv)                              Unrestricted Stock.

 

(v)                                 Deferred Stock.

 

(vi)                              Cash Performance Awards.

 

(vii)                           Other Performance Awards.

 

(viii)                        Grants of cash made in connection with other Awards in order to help
defray

 

8

 

in
whole or in part the economic cost (including tax cost) of the Award to
the Participant.

 

“BOARD”:
The Board of Directors of the Company.

 

“CASH
PERFORMANCE AWARD”: A Performance Award payable in cash. The right of the
Company under Section 4.a.(3) (subject to the consent of the holder
of the Award as therein provided) to extinguish an Award in exchange for cash
or the exercise by the Company of such right shall not make an Award otherwise
not payable in cash a Cash Performance Award.

 

“CODE”:
The U.S. Internal Revenue Code of 1986 as from time to time amended and in
effect, or any successor statute as from time to time in effect.

 

“COMMITTEE”:
One or more committees of the Board (including any subcommittee thereof)
appointed or authorized to make Awards and otherwise to administer the Plan. In
the case of Awards granted to officers of the Company, except as otherwise
permitted by the regulations at Treas. Regs. Section 1.162-27, the
Committee shall be comprised solely of two or more outside directors within the
meaning of Section 162(m).

 

“COMPANY”:
Charles River Laboratories International, Inc.

 

“COVERED
TRANSACTION”: Any of (i) a consolidation or merger in which the Company is
not the surviving corporation or which results in any individual, entity or “group”
(within the meaning of section 13(d) of the Securities Exchange Act
of 1934) acquiring the beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) directly or indirectly of more than 50% of
either the then outstanding shares of common stock of the Company or the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors, (ii) a sale or
transfer of all or substantially all the Company’s assets, or (iii) a dissolution
or liquidation of the Company.

 

“DEFERRED
STOCK”: A promise to deliver Stock or other securities in the future on
specified terms.

 

“EMPLOYEE”:
Any person who is employed by the Company or an Affiliate.

 

“EXCLUDED
TRANSACTION”: A Covered Transaction in which

 

(i)                                     the shares of common stock of the Company or
the voting securities of the Company entitled to vote generally in the election
of directors are acquired directly from the Company; or

 

(ii)                                  the shares of common stock of the Company or
the voting securities of the Company entitled to vote generally in the election
of directors are acquired by any employee benefit plan (or related trust)
sponsored or maintained by

 

9

 

the
Company or any corporation controlled by the Company; or

 

(iii)                               (a) the beneficial owners of the outstanding shares of common
stock of the Company, and of the securities of the Company entitled to vote
generally in the election of directors, immediately prior to such transaction
beneficially own, directly or indirectly, in substantially the same proportions
immediately following such transaction more than 50% of the outstanding shares
of common stock and of the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors of the
corporation (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) resulting from such
transaction excluding such ownership as existed prior to the transaction and (b) at
least a majority of the members of the board of directors of the corporation
resulting from such transaction were members of the board of directors at the
time of the execution of the initial agreement, or of the action of the Board,
authorizing such transaction.

 

“ISO”:
A Stock Option intended to be an “incentive stock option” within the meaning of
Section 422 of the Code.

 

“PARTICIPANT”:
An Employee, director or other person providing services to the Company or its
Affiliates who is granted an Award under the Plan.

 

“PERFORMANCE
AWARD”: An Award subject to Performance Criteria.

 

“PERFORMANCE
CRITERIA”: Specified criteria the satisfaction of which is a condition for the
exercisability, vesting or full enjoyment of an Award. For purposes of
Performance Awards that are intended to qualify for the performance-based
compensation exception under Section 162(m), a Performance Criterion shall
mean an objectively determinable measure of performance relating to any of the
following (determined either on a consolidated basis or, as the context
permits, on a divisional, subsidiary, line of business, project or geographical
basis or in combinations thereof): (i) sales; revenues; assets;
liabilities; costs; expenses; earnings before or after deduction for all or any
portion of interest, taxes, depreciation, amortization or other items, whether
or not on a continuing operations or an aggregate or per share basis; return on
equity, investment, capital or assets; one or more operating ratios; borrowing
levels, leverage ratios or credit rating; market share; capital expenditures;
cash flow; working capital requirements; stock price; stockholder return; sales,
contribution or gross margin, of particular products or services; particular
operating or financial ratios; customer acquisition, expansion and retention;
or any combination of the foregoing; or (ii) acquisitions and divestitures
(in whole or in part); joint ventures and strategic alliances; spin-offs, split-ups
and the like; reorganizations; recapitalizations, restructurings, financings
(issuance of debt or equity) and refinancings; transactions that would
constitute a change of control; or any combination of the foregoing. A
Performance Criterion measure and targets with respect thereto determined by
the Administrator need not be based upon an increase, a positive or improved
result or

 

10

 

avoidance
of loss.

 

“PLAN”:
The Charles River Laboratories International, Inc. 2000 Incentive Plan as
from time to time amended and in effect.

 

“RESTRICTED
STOCK”: An Award of Stock subject to restrictions requiring that such Stock be
redelivered to the Company if specified conditions are not satisfied.

 

“SECTION 162(m)”:
Section 162(m) of the Code.

 

“SARS”:
Rights entitling the holder upon exercise to receive cash or Stock, as the
Administrator determines, equal to a function (determined by the Administrator
using such factors as it deems appropriate) of the amount by which the Stock
has appreciated in value since the date of the Award.

 

“STOCK”:
Common Stock of the Company.

 

“STOCK
OPTIONS”: Options entitling the recipient to acquire shares of Stock upon
payment of the exercise price.

 

“UNRESTRICTED
STOCK”: An Award of Stock not subject to any restrictions under the Plan.

 

11

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