Document:

exv10w8

Exhibit 10.8

EXCHANGE NATIONAL BANCSHARES, INC.

2007 OMNIBUS INCENTIVE PLAN*

 

			
	*	 	Pursuant to resolutions adopted by the Board of Directors of Hawthorn Bancshares, Inc.
(formerly known as Exchange National Bancshares, Inc.), (i) the name of the Exchange
National Bancshares, Inc. 2007 Omnibus Incentive Plan was changed to the Hawthorn
Bancshares, Inc. 2007 Omnibus Incentive Plan and (ii) all references to Exchange National
Bancshares, Inc. in the Hawthorn Bancshares, Inc. 2007 Omnibus Incentive Plan were changed
to Hawthorn Bancshares, Inc., and this Plan shall be deemed to be amended in accordance with
such resolutions.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 1 INTRODUCTION
	 	 	5	 
	 
	 	 	 	 
	1.1 Establishment
	 	 	5	 
	1.2 Purpose
	 	 	5	 
	1.3 Duration
	 	 	5	 
	1.4 Plan Subject to Shareholder Approval
	 	 	5	 
	 
	 	 	 	 
	SECTION 2 DEFINITIONS
	 	 	5	 
	 
	 	 	 	 
	2.1 The following terms shall have the meanings set forth below.
	 	 	5	 
	“1933 Act”
	 	 	5	 
	“1934 Act”
	 	 	5	 
	“Affiliate”
	 	 	6	 
	“Award”
	 	 	6	 
	“Award Agreement”
	 	 	6	 
	“Beneficiary”
	 	 	6	 
	“Board”
	 	 	6	 
	“Bonus Shares”
	 	 	6	 
	“Cause”
	 	 	6	 
	“Change in Control”
	 	 	7	 
	“Code”
	 	 	8	 
	“Committee”
	 	 	8	 
	“Company”
	 	 	8	 
	“Continuing Director”
	 	 	8	 
	“Control”
	 	 	8	 
	“Covered Employee”
	 	 	8	 
	“Date of Grant” or “Grant Date”
	 	 	8	 
	“Deferred Shares”
	 	 	9	 
	“Disabled” or “Disability”
	 	 	9	 
	“Effective Date”
	 	 	9	 
	“Eligible Employees”
	 	 	9	 
	“Employee”
	 	 	9	 
	“Executive Officer”
	 	 	9	 
	“Fair Market Value”
	 	 	9	 
	“Freestanding SAR”
	 	 	9	 
	“Holder”
	 	 	10	 
	“Incentive Stock Option”
	 	 	10	 
	“Nonqualified Stock Option”
	 	 	10	 
	“Option”
	 	 	10	 
	“Option Agreement” or “Option Award Agreement”
	 	 	10	 
	“Option Exercise Price”
	 	 	10	 
	“Optionee”
	 	 	10	 

i

 

	 	 	 	 	 
	“Participant”
	 	 	10	 
	“Performance Award”
	 	 	10	 
	“Performance Period”
	 	 	10	 
	“Performance Shares”
	 	 	10	 
	“Performance Units”
	 	 	10	 
	“Person”
	 	 	11	 
	“Plan”
	 	 	11	 
	“Restricted Stock”
	 	 	11	 
	“Restricted Stock Unit”
	 	 	11	 
	“Rule 16b-3”
	 	 	11	 
	“SAR” or “Stock Appreciation Right”
	 	 	11	 
	“SAR Holder”
	 	 	11	 
	“Section 16 Person”
	 	 	11	 
	“Service Provider”
	 	 	11	 
	“Share”
	 	 	11	 
	“Stock”
	 	 	11	 
	“Subsidiary”
	 	 	11	 
	“Tandem SAR”
	 	 	11	 
	“Vested Option”
	 	 	11	 
	2.2 General Interpretive Principles
	 	 	12	 
	 
	 	 	 	 
	SECTION 3 PLAN ADMINISTRATION
	 	 	12	 
	 
	 	 	 	 
	3.1 Composition of Committee
	 	 	12	 
	3.2 Authority of Committee
	 	 	12	 
	3.3 Committee Delegation
	 	 	13	 
	3.4 Determination Under the Plan
	 	 	13	 
	 
	 	 	 	 
	SECTION 4 STOCK SUBJECT TO THE PLAN
	 	 	13	 
	 
	 	 	 	 
	4.1 Number of Shares
	 	 	13	 
	4.2 Unused and Forfeited Stock
	 	 	14	 
	4.3 Adjustments in Authorized Shares
	 	 	14	 
	4.4 General Adjustment Rules.
	 	 	14	 
	 
	 	 	 	 
	SECTION 5 PARTICIPATION
	 	 	15	 
	 
	 	 	 	 
	5.1 Basis of Grant
	 	 	15	 
	5.2 Types of Grants; Limits
	 	 	15	 
	5.3 Award Agreements
	 	 	15	 
	5.4 Restrictive Covenants
	 	 	15	 
	5.5 Maximum Annual Award
	 	 	15	 
	 
	 	 	 	 
	SECTION 6 STOCK OPTIONS
	 	 	16	 
	 
	 	 	 	 
	6.1 Grant of Options
	 	 	16	 
	6.2 Option Agreements
	 	 	16	 

ii

 

	 	 	 	 	 
	(a)Number of Shares
	 	 	16	 
	(b)Price
	 	 	16	 
	(c)Duration of Options
	 	 	17	 
	(d)Termination of Service, Death, Disability, etc
	 	 	17	 
	(e)Transferability
	 	 	17	 
	(f)Exercise, Payments, etc.
	 	 	17	 
	(g)Date of Grant
	 	 	18	 
	(h)Withholding
	 	 	18	 
	(i)Adjustment of Options
	 	 	19	 
	6.3 Shareholder Privileges
	 	 	19	 
	 
	 	 	 	 
	SECTION 7 STOCK APPRECIATION RIGHTS
	 	 	20	 
	 
	 	 	 	 
	7.1 Grant of SARs
	 	 	20	 
	(a)Number of Shares
	 	 	20	 
	(b)Exercise Price and Other Terms
	 	 	20	 
	7.2 SAR Award Agreement
	 	 	20	 
	7.3 Exercise of Tandem SARs
	 	 	20	 
	7.4 Exercise of Freestanding SARs
	 	 	20	 
	7.5 Expiration of SARs
	 	 	21	 
	7.6 Payment of SAR Amount
	 	 	21	 
	 
	 	 	 	 
	SECTION 8 AWARDS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS
	 	 	21	 
	 
	 	 	 	 
	8.1 Restricted Stock Awards Granted by Committee
	 	 	21	 
	8.2 Restricted Stock Unit Awards Granted by Committee
	 	 	21	 
	8.3 Restrictions
	 	 	21	 
	8.4 Privileges of a Shareholder, Transferability
	 	 	22	 
	8.5 Enforcement of Restrictions
	 	 	22	 
	8.6 Termination of Service, Death, Disability, etc
	 	 	22	 
	 
	 	 	 	 
	SECTION 9 PERFORMANCE SHARES, PERFORMANCE UNITS, BONUS SHARES AND DEFERRED SHARES
	 	 	23	 
	 
	 	 	 	 
	9.1 Awards Granted by Committee
	 	 	23	 
	9.2 Terms of Performance Shares or Performance Units
	 	 	23	 
	9.3 Bonus Shares
	 	 	23	 
	9.4 Deferred Shares
	 	 	23	 
	 
	 	 	 	 
	SECTION 10 Performance Awards; Section 162(M) Provisions
	 	 	23	 
	 
	 	 	 	 
	10.1 Terms of Performance Awards
	 	 	23	 
	10.2 Performance Goals
	 	 	24	 
	10.3 Adjustments
	 	 	25	 
	10.4 Other Restrictions
	 	 	25	 
	10.5 Section 162(m) Limitations
	 	 	25	 

iii

 

	 	 	 	 	 
	SECTION 11 REORGANIZATION, CHANGE IN CONTROL OR LIQUIDATION
	 	 	25	 
	 
	 	 	 	 
	SECTION 12 RIGHTS OF EMPLOYEES; PARTICIPANTS
	 	 	26	 
	 
	 	 	 	 
	12.1 Employment
	 	 	26	 
	12.2 Nontransferability
	 	 	26	 
	12.3 Permitted Transfers
	 	 	27	 
	 
	 	 	 	 
	SECTION 13 GENERAL RESTRICTIONS
	 	 	27	 
	 
	 	 	 	 
	13.1 Investment Representations
	 	 	27	 
	13.2 Compliance with Securities Laws.
	 	 	27	 
	13.3 Stock Restriction Agreement
	 	 	28	 
	 
	 	 	 	 
	SECTION 14 OTHER EMPLOYEE BENEFITS
	 	 	28	 
	 
	 	 	 	 
	SECTION 15 PLAN AMENDMENT, MODIFICATION AND TERMINATION
	 	 	28	 
	 
	 	 	 	 
	15.1 Amendment, Modification, and Termination
	 	 	28	 
	15.2 Adjustment Upon Certain Unusual or Nonrecurring Events
	 	 	28	 
	15.3 Awards Previously Granted
	 	 	28	 
	 
	 	 	 	 
	SECTION 16 WITHHOLDING
	 	 	29	 
	 
	 	 	 	 
	16.1 Withholding Requirement
	 	 	29	 
	16.2 Withholding with Stock
	 	 	29	 
	 
	 	 	 	 
	SECTION 17 NONEXCLUSIVITY OF THE PLAN
	 	 	29	 
	 
	 	 	 	 
	17.1 Nonexclusivity of the Plan
	 	 	29	 
	 
	 	 	 	 
	SECTION 18 REQUIREMENTS OF LAW
	 	 	30	 
	 
	 	 	 	 
	18.1 Requirements of Law
	 	 	30	 
	18.2 Code Section 409A
	 	 	30	 
	18.3 Rule 16b-3
	 	 	30	 
	18.4 Governing Law
	 	 	30	 

iv

 

EXCHANGE NATIONAL BANCSHARES, INC.

2007 OMNIBUS INCENTIVE PLAN

SECTION 1

INTRODUCTION

	1.1	 	Establishment. Exchange National Bancshares, Inc., a corporation organized and existing
under the laws of the state of Missouri (the “Company”), hereby establishes the Exchange
National Bancshares, Inc. 2007 Omnibus Incentive Plan (the “Plan”) for certain employees of
the Company and its affiliates, certain non-employee directors of the Company and its
affiliates and certain non-employee advisory directors of the Company and its affiliates.
	 
	1.2	 	Purpose. The purpose of this Plan is to encourage employees, non-employee directors and
non-employee advisory directors of the Company and its affiliates and subsidiaries to acquire
a proprietary and vested interest in the growth and performance of the Company. The Plan also
is designed to assist the Company in attracting and retaining employees, non-employee
directors and non-employee advisory directors by providing them with the opportunity to
participate in the success and profitability of the Company.
	 
	1.3	 	Duration. The Plan shall commence on the Effective Date and shall remain in effect, subject
to the right of the Board to amend or terminate the Plan at any time pursuant to Section 15
hereof, until all Shares subject to the Plan shall have been issued, purchased or acquired
according to the Plan’s provisions. Unless the Plan shall be reapproved by the shareholders
of the Company and the Board renews the continuation of the Plan, no Awards shall be issued
pursuant to the Plan after the tenth (10th) anniversary of the Effective Date.
	 
	1.4	 	Plan Subject to Shareholder Approval. Although the Plan is effective on the Effective Date,
the Plan’s continued existence is subject to the Plan being approved by the Company’s
shareholders within 12 months of the Effective Date. Any Awards granted under the Plan after
the Effective Date but before the approval of the Plan by the Company’s shareholders will
become null and void if the Company’s shareholders do not approve this Plan within such
12-month period.

SECTION 2

DEFINITIONS

	2.1	 	The following terms shall have the meanings set forth below.
	 
	 	 	“1933 Act” means the Securities Act of 1933, as it may be amended from time to time.
	 
	 	 	“1934 Act” means the Securities Exchange Act of 1934, as it may be amended from time to
time.

5

 

	 	 	“Affiliate” of the Company means any Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by, or is under common Control with the Company.
	 
	 	 	“Award” means a grant made under this Plan in any form, which may include but is not limited
to, Stock Options, Restricted Stock, Restricted Stock Units, Bonus Shares, Deferred Shares,
Performance Shares, Stock Appreciation Rights and Performance Units.
	 
	 	 	“Award Agreement” means a written agreement or instrument between the Company and a Holder
evidencing an Award.
	 
	 	 	“Beneficiary” means the person, persons, trust or trusts which have been designated by a
Holder in his or her most recent written beneficiary designation filed with the Company to
receive the benefits specified under this Plan upon the death of the Holder, or, if there is
no designated beneficiary or surviving designated beneficiary, then the Person or Persons
entitled by will or the laws of descent and distribution to receive such benefits.
	 
	 	 	“Board” means the Board of Directors of the Company.
	 
	 	 	“Bonus Shares” means Shares that are awarded to a Participant without cost and without
restriction in recognition of past performance (whether determined by reference to another
employee benefit plan of the Company or otherwise) or as an incentive to become an employee
of the Company or a Subsidiary.
	 
	 	 	“Cause” means, unless otherwise defined in an Award Agreement:

	 	(i)	 	Participant’s conviction of, plea of guilty to, or plea of nolo
contendere to a felony or other crime that involves fraud or dishonesty;
	 
	 	(ii)	 	Any willful action or omission by a Participant which would
constitute grounds for immediate dismissal under the employment policies of the
Company by which Participant is employed, including intoxication with alcohol
or illegal drugs while on the premises of the Company, or violation of sexual
harassment laws or the internal sexual harassment policy of the Company by
which Participant is employed;
	 
	 	(iii)	 	Participant’s habitual neglect of duties, including repeated
absences from work without reasonable excuse; or
	 
	 	(iv)	 	Participant’s willful and intentional material misconduct in
the performance of his duties that results in financial detriment to the
Company;

	 	 	 	provided, however, that for purposes of clauses (ii), (iii) and (iv), “Cause” shall
not include any one or more of the following: bad judgment, negligence or any act
or omission believed by the Participant in good faith to have been in or not opposed
to the interest of the Company (without intent of the Participant to gain,

6

 

	 	 	 	directly or indirectly, a profit to which the Participant was not legally entitled).
A Participant who agrees to resign from his affiliation with the Company in lieu of
being terminated for Cause may be deemed, in the sole discretion of the Committee,
to have been terminated for Cause for purposes of this Plan.

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

	 	(i)	 	Any Person is or becomes the Beneficial Owner (within the
meaning set forth in Rule 13d-3 under the 1934 Act), directly or indirectly, of
securities of the Company (not including for this purpose any securities
acquired directly from the Company or its Affiliates or held by an employee
benefit plan of the Company) representing 50% or more of the combined voting
power of the Company’s then outstanding securities, excluding any Person who
becomes such a Beneficial Owner in connection with a transaction described in
clause (x) of paragraph (iii) of this definition; or
	 
	 	(ii)	 	The following individuals cease for any reason to constitute a
majority of the number of directors then serving: individuals who, on the
Effective Date, constitute the Board and any new director (other than a
director whose initial assumption of office is in connection with an actual or
threatened election contest, including a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the
Board or nomination for election by the Company’s shareholders was approved by
a vote of at least two-thirds of the directors then still in office who either
were directors on the Effective Date or whose appointment, election or
nomination for election was previously so approved or recommended; or
	 
	 	(iii)	 	There is consummated a merger or consolidation of the Company
with any other corporation, OTHER THAN (x) a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior to such merger or consolidation continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or any parent thereof), in combination with the ownership of
any trustee or other fiduciary holding securities under an employee benefit
plan of the Company, at least 50% of the combined voting power of the
securities of the Company or such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (y) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company (not including for this
purpose any securities acquired directly from the Company or its Affiliates
other than in connection with the acquisition by the Company or its Affiliates
of a

7

 

	 	business)	 	representing 50% or more of the combined voting power of the
Company’s then outstanding securities; or

	 	(iv)	 	The shareholders of the Company approve a plan of complete
liquidation or dissolution of the Company or there is consummated an agreement
for the sale or disposition by the Company of all or substantially all of the
Company’s assets, other than a sale or disposition by the Company of all or
substantially all of the Company’s assets to an entity, at least 50% of the
combined voting power of the voting securities of which are owned by
shareholders of the Company in substantially the same proportions as their
ownership of the Company immediately prior to such sale.

	 	 	Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated transactions
immediately following which the record holders of the Company’s common stock immediately
prior to such transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the Company’s
assets immediately following such transaction or series of transactions.
	 
	 	 	“Code” means the Internal Revenue Code of 1986, as it may be amended from time to time, and
the rules and regulations promulgated thereunder.
	 
	 	 	“Committee” means (i) the Board, or (ii) one or more committees of the Board to whom the
Board has delegated all or part of its authority under this Plan. Initially, the Committee
shall be the Compensation Committee of the Board which is delegated all of the Board’s
authority under this Plan as contemplated by clause (ii) above.
	 
	 	 	“Company” means Exchange National Bancshares, Inc., a Missouri corporation, and any
successor thereto.
	 
	 	 	“Continuing Director” means any person who was a member of the Board as of the Effective
Date, and any person who subsequently becomes a member of such Board if such person’s
appointment, election or nomination for election to such Board is recommended or approved by
a majority of the then Continuing Directors, unless the Continuing Directors designate such
person as not a Continuing Director.
	 
	 	 	“Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through the ownership of
voting securities, by contract or otherwise.
	 
	 	 	“Covered Employee” means an Employee that meets the definition of “covered employee” under
Section 162(m)(3) of the Code.
	 
	 	 	“Date of Grant” or “Grant Date” means, with respect to any Award, the date as of which such
Award is granted under the Plan.

8

 

	 	 	“Deferred Shares” means Shares that are awarded to a Grantee on a deferred basis pursuant to
Section 9.4.
	 
	 	 	“Disabled” or “Disability” means an individual (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months or (ii) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, receiving income replacement benefits
for a period of not less than 3 months under a Company-sponsored accident and health plan.
Notwithstanding the above, with respect to an Incentive Stock Option and the period of time
following a separation from service in which a Holder may exercise such Incentive Stock
Option, “disabled” shall have the same meaning as defined in Code section 22(e)(3).
	 
	 	 	“Effective Date” means June 13, 2007.
	 
	 	 	“Eligible Employees” means all Employees (including officers and directors who are also
Employees) of the Company or an Affiliate upon whose judgment, initiative and efforts the
Company depends, or will depend, for the successful conduct of the Company’s business.
	 
	 	 	“Employee” means a common law employee of the Company or an Affiliate.
	 
	 	 	“Executive Officer” means (i) the president of the Company, any vice president of the
Company, including any vice president of the Company in charge of a principal business unit,
division or function (such as sales, administration, or finance), any other officer who
performs a policy making function or any other person who performs similar policy making
functions for the Company, (ii) Executive Officers (as defined in part (i) of this
definition) of subsidiaries of the Company who perform policy making functions for the
Company, and (iii) any Person designated or identified by the Board as being an Executive
Officer for purposes of the 1933 Act or the 1934 Act, including any Person designated or
identified by the Board as being a Section 16 Person.
	 
	 	 	“Fair Market Value” means, as of any date, the value of the Stock determined in good faith,
from time to time, by the Committee in its sole discretion, and for this purpose the
Committee may adopt such formulas as in its opinion shall reflect the true fair market value
of such Stock from time to time and may rely on such independent advice with respect to such
fair market value as the Committee shall deem appropriate. In the event that the Shares of
the Company are traded on a national securities exchange, the Committee may determine that
the Fair Market Value of the Stock shall be based upon the closing price on the trading day
of the applicable date as reported in The Wall Street Journal and consistently
applied. If the securities exchange is closed on the applicable date, the closing price on
the next day the securities exchange is open will be the Fair Market Value.
	 
	 	 	“Freestanding SAR” means any SAR that is granted independently of any Option.

9

 

	 	 	“Holder”means a Participant, Beneficiary or Permitted Transferee who is in possession of an
Award Agreement representing an Award that (i) in the case of a Participant has been
granted to such individual, (ii) in the case of a Beneficiary has transferred to such person
under the laws of descent and distribution, or (iii) in the case of a Permitted Transferee,
has been transferred to such person as permitted by the Committee, and, with respect to all
of the above cases (i), (ii) and (iii), such Award Agreement has not expired, been canceled
or terminated.
	 
	 	 	“Incentive Stock Option” means any Option designated as such and granted in accordance with
the requirements of Section 422 of the Code.
	 
	 	 	“Nonqualified Stock Option” means any Option to purchase Shares that is not an Incentive
Stock Option.
	 
	 	 	“Option” means a right to purchase Stock at a stated price for a specified period of time.
Such definition includes both Nonqualified Stock Options and Incentive Stock Options.
	 
	 	 	“Option Agreement” or “Option Award Agreement” means a written agreement or instrument
between the Company and a Holder evidencing an Option.
	 
	 	 	“Option Exercise Price” means the price at which Shares subject to an Option may be
purchased, determined in accordance with Section 6.2(b).
	 
	 	 	“Optionee” shall have the meaning as set forth in Section 6.2. For the avoidance of any
doubt, in situations where the Option has been transferred to a Permitted Transferee or
passed to a Beneficiary in accordance with the laws of descent and distribution, the
Optionee will not be the same person as the Holder of the Option.
	 
	 	 	“Participant” means a Service Provider of the Company designated by the Committee from time
to time during the term of the Plan to receive one or more Awards under the Plan.
	 
	 	 	“Performance Award” means any Award that will be issued or granted, or become vested or
payable, as the case may be, upon the achievement of certain performance goals (as described
in Section 10) to a Participant pursuant to Section 10.
	 
	 	 	“Performance Period” means the period of time as specified by the Committee during which any
performance goals are to be measured.
	 
	 	 	“Performance Shares” means an Award made pursuant to Section 9 which entitles a Holder to
receive Shares, their cash equivalent, or a combination thereof based on the achievement of
performance targets during a Performance Period.
	 
	 	 	“Performance Units” means an Award made pursuant to Section 9 which entitles a Holder to
receive cash, Stock or a combination thereof based on the achievement of performance goals
during a Performance Period.

10

 

	 	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the 1934 Act and
used in Sections 13(d) and 14(d) thereof, including “group” as defined in Section 13(d)
thereof.
	 
	 	 	“Plan” means the Exchange National Bancshares, Inc. 2007 Omnibus Incentive Plan, as set
forth in this instrument and as hereafter amended from time to time.
	 
	 	 	“Restricted Stock” means Stock granted under Section 8 that is subject those restrictions
set forth therein and the Award Agreement.
	 
	 	 	“Restricted Stock Unit” means an Award granted under Section 8 evidencing the Holder’s right
to receive a Share (or, at the Committee’s discretion, a cash payment equal to the Fair
Market Value of a Share) at some future date and that is subject those restrictions set
forth therein and the Award Agreement.
	 
	 	 	“Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act.
	 
	 	 	“SAR” or “Stock Appreciation Right” means an Award, granted either alone or in connection
with an Option, that is designated as a SAR pursuant to Section 7.
	 
	 	 	“SAR Holder” shall have the meaning as set forth in Section 7.2.
	 
	 	 	“Section 16 Person” means a Person who is subject to obligations under Section 16 of the
1934 Act with respect to transactions involving equity securities of the Company.
	 
	 	 	“Service Provider” means an Eligible Employee, a non-employee director of the Company and
its affiliates or a non-employee advisory director of the Company and its affiliates.
	 
	 	 	“Share” means a share of Stock.
	 
	 	 	“Stock” means authorized and issued or unissued common stock of the Company, at such par
value as may be established from time to time.
	 
	 	 	“Subsidiary” means (i) in the case of an Incentive Stock Option a “subsidiary corporation,”
whether now or hereafter existing, as defined in section 424(f) of the Code, and (ii) in the
case of any other type of Award, in addition to a subsidiary corporation as defined in
clause (i), a limited liability company, partnership or other entity in which the Company
controls fifty percent (50%) or more of the voting power or equity interests.
	 
	 	 	“Tandem SAR” means a SAR which is granted in connection with, or related to, an Option, and
which requires forfeiture of the right to purchase an equal number of Shares under the
related Option upon the exercise of such SAR; or alternatively, which requires the
cancellation of an equal amount of SARs upon the purchase of the Shares subject to the
Option.
	 
	 	 	“Vested Option” means any Option, or portion thereof, which is exercisable by the Holder.
Vested Options remain exercisable only for that period of time as provided for

11

 

	 	 	under this Plan and any applicable Option Award Agreement. Once a Vested Option is no longer
exercisable after otherwise having been exercisable, the Option shall become null and void.

	2.2	 	General Interpretive Principles. (i) Words in the singular shall include the plural and vice
versa, and words of one gender shall include the other gender, in each case, as the context
requires; (ii) the terms “hereof,” “herein,” and “herewith” and words of similar import shall,
unless otherwise stated, be construed to refer to this Plan and not to any particular
provision of this Plan, and references to Sections are references to the Sections of this Plan
unless otherwise specified; (iii) the word “including” and words of similar import when used
in this Plan shall mean “including, without limitation,” unless otherwise specified; and (iv)
any reference to any U.S. federal, state, or local statute or law shall be deemed to also
refer to all amendments or successor provisions thereto, as well as all rules and regulations
promulgated under such statute or law, unless the context otherwise requires.

SECTION 3

PLAN ADMINISTRATION

	3.1	 	Composition of Committee. The Plan shall be administered by the Committee. To the extent
the Board considers it desirable for transactions relating to Awards to be eligible to qualify
for an exemption under Rule 16b-3, the Committee shall consist of two or more directors of the
Company, all of whom qualify as “non-employee directors” within the meaning of Rule 16b-3. To
the extent the Board considers it desirable for compensation delivered pursuant to Awards to
be eligible to qualify for an exemption from the limit on tax deductibility of compensation
under section 162(m) of the Code, the Committee shall consist of two or more directors of the
Company, all of whom shall qualify as “outside directors” within the meaning of Code section
162(m).
	 
	3.2	 	Authority of Committee. Subject to the terms of the Plan and applicable law, and in addition
to other express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority to:

	 	(a)	 	select the Service Providers to whom Awards may from time to time be granted
hereunder;
	 
	 	(b)	 	determine the type or types of Awards to be granted to eligible Service
Providers;
	 
	 	(c)	 	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, Awards;
	 
	 	(d)	 	determine the terms and conditions of any Award;
	 
	 	(e)	 	determine whether, and to what extent, and under what circumstances Awards may
be settled or exercised in cash, Shares, other securities, other Awards or other
property;

12

 

	 	(f)	 	determine whether, and to what extent, and under what circumstance Awards may
be canceled, forfeited, or suspended and the method or methods by which Awards may be
settled, exercised, canceled, forfeited, or suspended;
	 
	 	(g)	 	correct any defect, supply an omission, reconcile any inconsistency and
otherwise interpret and administer the Plan and any instrument or Award Agreement
relating to the Plan or any Award hereunder;
	 
	 	(h)	 	modify and amend the Plan, establish, amend, suspend, or waive such rules,
regulations and procedures of the Plan, and appoint such agents as it shall deem
appropriate for the proper administration of the Plan; and
	 
	 	(i)	 	make any other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan.

	3.3	 	Committee Delegation. The Committee may delegate to any member of the Board or committee of
Board members such of its powers as it deems appropriate, including the power to sub-delegate,
except that, pursuant to such delegation or sub-delegation, only a member of the Board (or a
committee thereof) may grant Awards from time to time to specified categories of Service
Providers in amounts and on terms to be specified by the Board or the Committee; provided that
no such grants shall be made other than by the Board or the Committee to individuals who are
then Section 16 Persons or other than by the Committee to individuals who are then or are
deemed likely to become a “covered employee” within the meaning of Code Section 162(m). A
majority of the members of the Committee may determine its actions and fix the time and place
of its meetings.
	 
	3.4	 	Determination Under the Plan. Unless otherwise expressly provided in the Plan, all
designations, determinations, adjustments, interpretations, and other decisions under or with
respect to the Plan, any Award or Award Agreement shall be within the sole discretion of the
Committee, may be made at any time and shall be final, conclusive, and binding upon all
persons, including the Company, any Participant, any Holder, and any shareholder. No member
of the Committee shall be liable for any action, determination or interpretation made in good
faith, and all members of the Committee shall, in addition to their rights as directors, be
fully protected by the Company with respect to any such action, determination or
interpretation.

SECTION 4

STOCK SUBJECT TO THE PLAN

	4.1	 	Number of Shares. Subject to adjustment as provided in Section 4.3 and subject to the
maximum amount of Shares that may be granted to an individual in a calendar year as set forth
in Section 5.5, no more than a total of Four Hundred Thousand (400,000) Shares are
authorized for issuance under the Plan in accordance with the provisions of the Plan and
subject to such restrictions or other provisions as the Committee may from time to time deem
necessary. Any Shares issued hereunder may consist, in whole or in part, of authorized and
unissued shares or treasury shares. The Shares may be divided among the various Plan
components as the Committee shall determine. Shares that are subject to an

13

 

	 	 	underlying Award and Shares that are issued pursuant to the exercise of an Award shall be applied to reduce
the maximum number of Shares remaining available for use under the Plan. The Company shall
at all times during the term of the Plan and while any Awards are outstanding retain as
authorized and unissued Stock, or as treasury Stock, at least the number of Shares from time
to time required under the provisions of the Plan, or otherwise assure itself of its ability
to perform its obligations hereunder.

	4.2	 	Unused and Forfeited Stock. Any Shares that are subject to an Award under this Plan that are
not used because the terms and conditions of the Award are not met, including any Shares that
are subject to an Award that expires or is terminated for any reason, any Shares that are used
for full or partial payment of the purchase price of Shares with respect to which an Option is
exercised and any Shares retained by the Company pursuant to Section 16.2 shall automatically
become available for use under the Plan. Notwithstanding the foregoing, any Shares used for
full or partial payment of the purchase price of the Shares with respect to which an Option is
exercised and any Shares retained by the Company pursuant to Section 16.2 that were originally
Incentive Stock Option Shares must still be considered as having been granted for purposes of
determining whether the Share limitation provided for in Section 4.1 has been reached for
purposes of Incentive Stock Option grants.
	 
	4.3	 	Adjustments in Authorized Shares. If, without the receipt of consideration therefore by the
Company, the Company shall at any time increase or decrease the number of its outstanding
Shares or change in any way the rights and privileges of such Shares such as, but not limited
to, the payment of a stock dividend or any other distribution upon such Shares payable in
Stock, or through a stock split, subdivision, consolidation, combination, reclassification or
recapitalization involving the Stock, such that an adjustment is necessary in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan then in relation to the Stock that is affected by one or more of the above
events, the numbers, rights and privileges of (i) the Shares as to which Awards may be granted
under the Plan, (ii) the exercise or purchase price of each outstanding Award, and (iii) the
Shares then included in each outstanding Award granted hereunder, shall be increased,
decreased or changed in like manner as if the Shares underlying the Award had been issued and
outstanding, fully paid and non assessable at the time of such occurrence. The manner in
which Awards are adjusted pursuant to this Section 4.3 is to be determined by the Board or the
Committee; provided that all adjustments must be determined by the Board or Committee in good
faith, and must be effectuated so as to preserve the value that any Participant has in
outstanding Awards as of the time of the event giving rise to any potential dilution or
enlargement of rights.
	 
	4.4	 	General Adjustment Rules.

	 	(a)	 	If any adjustment or substitution provided for in this Section 4 shall result
in the creation of a fractional Share under any Award, such fractional Share shall be
rounded to the nearest whole Share and fractional Shares shall not be issued.

14

 

	 	(b)	 	In the case of any such substitution or adjustment affecting an Option or a SAR
(including a Nonqualified Stock Option) such substitution or adjustments shall be made
in a manner that is in accordance with the substitution and assumption rules set forth
in Treasury Regulations 1.424-1 and the applicable guidance relating to Code section
409A.

SECTION 5

PARTICIPATION

	5.1	 	Basis of Grant. Participants in the Plan shall be those Service Providers, who, in the
judgment of the Committee, have performed, are performing, or during the term of their
incentive arrangement will perform, important services in the management, operation and
development of the Company, and significantly contribute, or are expected to significantly
contribute, to the achievement of long-term corporate economic objectives.
	 
	5.2	 	Types of Grants; Limits. Participants may be granted from time to time one or more Awards;
provided, however, that the grant of each such Award shall be separately approved by the
Committee or its designee, and receipt of one such Award shall not result in the automatic
receipt of any other Award. Written notice shall be given to such Person, specifying the
terms, conditions, right and duties related to such Award. Under no circumstance shall
Incentive Stock Options be granted to (i) non-employee directors, (ii) non-employee advisory
directors, or (iii) any person not permitted to receive Incentive Stock Options under the
Code.
	 
	5.3	 	Award Agreements. Each Participant shall enter into an Award Agreement(s) with the Company,
in such form as the Committee shall determine and which is consistent with the provisions of
the Plan, specifying such terms, conditions, rights and duties. Unless otherwise explicitly
stated in the Award Agreement, Awards shall be deemed to be granted as of the date specified
in the grant resolution of the Committee, which date shall be the date of any related
agreement(s) with the Participant. Unless explicitly provided for in a particular Award
Agreement that the terms of the Plan are being superseded, in the event of any inconsistency
between the provisions of the Plan and any such Award Agreement(s) entered into hereunder, the
provisions of the Plan shall govern.
	 
	5.4	 	Restrictive Covenants. The Committee may, in its sole and absolute discretion, place certain
restrictive covenants in an Award Agreement requiring the Participant to agree to refrain from
certain actions. Such Restrictive Covenants, if contained in the Award Agreement, will be
binding on the Participant.
	 
	5.5	 	Maximum Annual Award. The maximum number of Shares with respect to which an Award or Awards
may be granted to any Participant in any one taxable year of the Company (the “Maximum Annual
Participant Award”) shall not exceed Forty Thousand (40,000) Shares (subject to adjustment
pursuant to Sections 4.3 and 4.4). If an Option is in tandem with a SAR, such that the
exercise of the Option or SAR with respect to a Share cancels the tandem SAR or Option right,
respectively, with respect to each Share, the tandem Option and SAR rights with respect to
each Share shall be counted as covering but one Share for purposes of the Maximum Annual
Participant Award.

15

 

SECTION 6

STOCK OPTIONS

	6.1	 	Grant of Options. A Participant may be granted one or more Options. The Committee in its
sole discretion shall designate whether an Option is an Incentive Stock Option or a
Nonqualified Stock Option. The Committee may grant both an Incentive Stock Option and a
Nonqualified Stock Option to the same Participant at the same time or at different times.
Incentive Stock Options and Nonqualified Stock Options, whether granted at the same or
different times, shall be deemed to have been awarded in separate grants, shall be clearly
identified, and in no event shall the exercise of one Option affect the right to exercise any
other Option or affect the number of Shares for which any other Option may be exercised.
	 
	6.2	 	Option Agreements. Each Option granted under the Plan shall be evidenced by a written Option
Award Agreement which shall be entered into by the Company and the Participant to whom the
Option is granted (the “Optionee”), and which shall contain, or be subject to, the following
terms and conditions, as well as such other terms and conditions not inconsistent therewith,
as the Committee may consider appropriate in each case.

	 	(a)	 	Number of Shares. Each Option Award Agreement shall state that it covers a
specified number of Shares, as determined by the Committee. To the extent that the
aggregate Fair Market Value of Shares with respect to which Options designated as
Incentive Stock Options are exercisable for the first time by any Optionee during any
calendar year exceeds $100,000 or, if different, the maximum limitation in effect at
the time of grant under section 422(d) of the Code, such Options in excess of such
limit shall be treated as Nonqualified Stock Options. The foregoing shall be applied
by taking Options into account in the order in which they were granted. For the
purposes of the foregoing, the Fair Market Value of any Share shall be determined as of
the time the Option with respect to such Share is granted. In the event the foregoing
results in a portion of an Option designated as an Incentive Stock Option exceeding the
$100,000 limitation, only such excess shall be treated as a Nonqualified Stock Option.
	 
	 	(b)	 	Price. Each Option Award Agreement shall state the Option Exercise Price at
which each Share covered by an Option may be purchased. Such Option Exercise Price
shall be determined in each case by the Committee, but in no event shall the Option
Exercise Price for each Share covered by an Option be less than the Fair
Market Value of the Stock on the Option’s Grant Date, as determined by the
Committee; provided, however, that the Option Exercise Price for each Share covered
by an Incentive Stock Option granted to an Eligible Employee who then owns stock
possessing more than 10% of the total combined voting power of all classes of stock
of the Company or any parent or Subsidiary corporation of the Company must be at
least 110% of the Fair Market Value of the Stock subject to the Incentive Stock
Option on the Option’s Grant Date.

16

 

	 	(c)	 	Duration of Options. Each Option Award Agreement shall state the period of
time, determined by the Committee, within which the Option may be exercised by the
Holder (the “Option Period”). The Option Period must expire, in all cases, not more
than ten years from the Option’s Grant Date; provided, however, that the Option Period
of an Incentive Stock Option granted to an Eligible Employee who then owns Stock
possessing more than 10% of the total combined voting power of all classes of Stock of
the Company must expire not more than five years from the Option’s Grant Date. Each
Option Award Agreement shall also state the periods of time, if any, as determined by
the Committee, when incremental portions of each Option shall become exercisable. If
any Option or portion thereof is not exercised during its Option Period, such
unexercised portion shall be deemed to have been forfeited and have no further force or
effect.
	 
	 	(d)	 	Termination of Service, Death, Disability, etc. Each Option Agreement shall
state the period of time, if any, determined by the Committee, within which the Vested
Option may be exercised after an Optionee ceases to be a Service Provider on account of
the Participant’s death, Disability, voluntary resignation, retirement, cessation as a
director, or the Company having terminated such Optionee’s employment with or without
Cause. Unless an Option Agreement provides otherwise, a Participant’s change in status
between serving as an employee and/or director will not be considered a termination of
the Participant serving as a Service Provider for purposes of any Option expiration
period under the Plan.
	 
	 	(e)	 	Transferability. Except as otherwise determined by the Committee, Options
shall not be transferable by the Optionee except by will or pursuant to the laws of
descent and distribution. Each Vested Option shall be exercisable during the
Optionee’s lifetime only by him or her, or in the event of Disability or incapacity, by
his or her guardian or legal representative. Shares issuable pursuant to any Option
shall be delivered only to or for the account of the Optionee, or in the event of
Disability or incapacity, to his or her guardian or legal representative.
	 
	 	(f)	 	Exercise, Payments, etc.

	 	(i)	 	Unless otherwise provided in the Option Award Agreement, each
Vested Option may be exercised by delivery to the Corporate Secretary of the
Company a written notice specifying the number of Shares with respect to which
such Option is exercised and payment of the Option Exercise Price. Such notice
shall be in a form satisfactory to the Committee or its designee
and shall specify the particular Vested Option that is being exercised and
the number of Shares with respect to which the Vested Option is being
exercised. The exercise of the Vested Option shall be deemed effective upon
receipt of such notice by the Corporate Secretary and payment to the
Company. The purchase of such Stock shall take place at the principal
offices of the Company upon delivery of such notice, at which time the
purchase price of the Stock shall be paid in full by any

17

 

	 	 	 	of the methods or any combination of the methods set forth in clause (ii) below.

	 	(ii)	 	The Option Exercise Price may be paid by any of the following
methods:

	 	A.	 	Cash or certified bank check;
	 
	 	B.	 	By delivery to the Company Shares then owned by
the Holder, the Fair Market Value of which equals the purchase price of
the Stock purchased pursuant to the Vested Option, properly endorsed
for transfer to the Company; provided, however, that Shares used for
this purpose must have been held by the Holder for such minimum period
of time as may be established from time to time by the Committee; and
provided further that the Fair Market Value of any Shares delivered in
payment of the purchase price upon exercise of the Options shall be the
Fair Market Value as of the exercise date, which shall be the date of
delivery of the Stock used as payment of the Option Exercise Price;
	 
	 	 	 	In lieu of actually surrendering to the Company the Shares then owned
by the Holder, the Committee may, in its discretion permit the Holder
to submit to the Company a statement affirming ownership by the
Holder of such number of Shares and request that such Shares,
although not actually surrendered, be deemed to have been surrendered
by the Holder as payment of the exercise price;
	 
	 	C.	 	For any Holder other than an Executive Officer
or except as otherwise prohibited by the Committee, by payment through
a broker in accordance with procedures permitted by Regulation T of the
Federal Reserve Board; or
	 
	 	D.	 	Any combination of the consideration provided
in the foregoing subsections (A), (B), and (C).

	 	(iii)	 	The Company may not guarantee a third-party loan obtained by a
Holder to pay any portion of the entire Option Exercise Price of the Shares.

	 	(g)	 	Date of Grant. Unless otherwise specifically specified in the Option Award
Agreement, an option shall be considered as having been granted on the date specified
in the grant resolution of the Committee.
	 
	 	(h)	 	Withholding.

	 	(A)	 	Nonqualified Stock Options. Upon any exercise of a
Nonqualified Stock Option, the Optionee shall make appropriate arrangements
with the Company to provide for the minimum amount of additional withholding
required by applicable federal and state income tax and payroll laws,

18

 

	 	 	 	including payment of such taxes through delivery of Stock or by withholding Stock to be
issued under the Option, as provided in Section 16 hereof.

	 	(B)	 	Incentive Stock Options. In the event that an Optionee makes a
disposition (as defined in Section 424(c) of the Code) of any Stock acquired
pursuant to the exercise of an Incentive Stock Option prior to the later of (i)
the expiration of two years from the date on which the Incentive Stock Option
was granted or (ii) the expiration of one year from the date on which the
Option was exercised, the Participant shall send written notice to the Company
at its principal office (Attention: Corporate Secretary) of the date of such
disposition, the number of shares disposed of, the amount of proceeds received
from such disposition, and any other information relating to such disposition
as the Company may reasonably request. The Optionee shall, in the event of
such a disposition, make appropriate arrangements with the Company to provide
for the amount of additional withholding, if any, required by applicable
Federal and state income tax laws.

	 	(i)	 	Adjustment of Options. Subject to the limitations set forth below and those
contained in Sections 6 and 15, the Committee may make any adjustment in the Option
Exercise Price, the number of Shares subject to, or the terms of, an outstanding Option
and a subsequent granting of an Option by amendment or by substitution of an
outstanding Option. Such amendment, substitution, or re-grant may result in terms and
conditions (including Option Exercise Price, number of Shares covered, vesting schedule
or exercise period) that differ from the terms and conditions of the original Option;
provided, however, the Committee may not, without shareholder approval (i) amend an
Option to reduce its Option Exercise Price, (ii) cancel an Option and regrant an Option
with a lower Option Exercise Price than the original Option Exercise Price of the
cancelled Option, or (iii) take any other action (whether in the form of an amendment,
cancellation or replacement grant) that has the effect of “repricing” an Option, as
defined under applicable NYSE rules or the rules of the established stock exchange or
quotation system on which the Company Stock is then listed or traded if such exchange’s
or quotation system’s rules define what constitutes a repricing. The Committee also
may not adversely affect the rights of any Optionee to previously granted Options
without the consent of such Optionee. If such action is affected by the amendment, the
effective date of such amendment shall be the date of the original grant. Any
adjustment, modification, extension or renewal of an Option shall be
effected such that the Option is either exempt from, or is compliant with, Code
section 409A.

	6.3	 	Shareholder Privileges. No Holder shall have any rights as a shareholder with respect to any
Shares covered by an Option until the Holder becomes the holder of record of such Stock, and
no adjustments shall be made for dividends or other distributions or other

19

 

	 	 	rights as to which
there is a record date preceding the date such Holder becomes the holder of record of such
Stock, except as provided in Section 4.

SECTION 7

STOCK APPRECIATION RIGHTS

	7.1	 	Grant of SARs. Subject to the terms and conditions of this Plan, a SAR may be granted to a
Participant at any time and from time to time as shall be determined by the Committee in its
sole discretion. The Committee may grant Freestanding SARs or Tandem SARs, or any combination
thereof.

	 	(a)	 	Number of Shares. The Committee shall have complete discretion to determine
the number of SARs granted to any Participant, subject to the limitations imposed in
this Plan and by applicable law.
	 
	 	(b)	 	Exercise Price and Other Terms. All SARs shall be granted with an exercise
price no less than the Fair Market Value of the underlying Shares on the SARs’ Date of
Grant. The Committee, subject to the provisions of this Plan, shall have complete
discretion to determine the terms and conditions of SARs granted under this Plan. The
exercise price per Share of Tandem SARs shall equal the exercise price per Share of the
related Option.

	7.2	 	SAR Award Agreement. Each SAR granted under the Plan shall be evidenced by a written SAR
Award Agreement which shall be entered into by the Company and the Participant to whom the SAR
is granted (the “SAR Holder”), and which shall specify the exercise price per share, the terms
of the SAR, the conditions of exercise, and such other terms and conditions as the Committee
in its sole discretion shall determine.
	 
	7.3	 	Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject
to the related Option upon the surrender of the right to exercise the equivalent portion of
the related Option. A Tandem SAR may be exercised only with respect to the Shares for which
its related Option is then exercisable. With respect to a Tandem SAR granted in connection
with an Incentive Stock Option: (a) the Tandem SAR shall expire no later than the expiration
of the underlying Incentive Stock Option; (b) the value of the payout with respect to the
Tandem SAR shall be for no more than one hundred percent (100%) of the difference between the
Exercise Price per Share of the underlying Incentive Stock Option and the Fair Market Value
per Share of the Shares subject to the underlying Incentive Stock Option at the time the
Tandem SAR is exercised; and (c) the Tandem SAR shall be exercisable only when the Fair Market
Value per Share of the Shares
subject to the Incentive Stock Option exceeds the per share Option Price per Share of the
Incentive Stock Option.
	 
	7.4	 	Exercise of Freestanding SARs. Freestanding SARs shall be exercisable on such terms and
conditions as the Committee in its sole discretion shall determine; provided, however, that no
Freestanding SAR granted to a Section 16 Person shall be exercisable until at least six (6)
months after the Date of Grant or such shorter period as may be permissible while maintaining
compliance with Rule 16b-3.

20

 

	7.5	 	Expiration of SARs. Each SAR Award Agreement shall state the period of time, if any,
determined by the Committee, within which the SAR may be exercised after a SAR Holder ceases
to be a Service Provider on account of the Participant’s death, Disability, voluntary
resignation, cessation as a director, or the Company having terminated such SAR Holder’s
employment with or without Cause. Unless otherwise specifically provided for in the SAR Award
agreement, a Tandem SAR granted under this Plan shall be exercisable at such time or times and
only to the extent that the related Option is exercisable. The Tandem SAR shall terminate and
no longer be exercisable upon the termination or exercise of the related Options, except that
Tandem SARs granted with respect to less than the full number of shares covered by a related
Option shall not be reduced until the exercise or termination of the related Option exceeds
the number of Shares not covered by the SARs.
	 
	7.6	 	Payment of SAR Amount. Upon exercise of a SAR, a Holder shall be entitled to receive payment
from the Company in an amount determined by multiplying (i) the positive difference between
the Fair Market Value of a Share on the date of exercise over the exercise price per Share by
(ii) the number of Shares with respect to which the SAR is exercised. The payment upon a SAR
exercise may be in whole Shares of equivalent value, cash, or a combination of whole Shares
and cash. Fractional Shares shall be rounded to the nearest whole Share.

SECTION 8

AWARDS OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS

	8.1	 	Restricted Stock Awards Granted by Committee. Coincident with or following designation for
participation in the Plan and subject to the terms and provisions of the Plan, the Committee,
at any time and from time to time, may grant Restricted Stock to any Service Provider in such
amounts as the Committee shall determine.
	 
	8.2	 	Restricted Stock Unit Awards Granted by Committee. Coincident with or following designation
for participation in the Plan and subject to the terms and provisions of the Plan, the
Committee may grant a Service Provider Restricted Stock Units in connection with or separate
from a grant of Restricted Stock. Upon the vesting of Restricted Stock Units, the Holder
shall be entitled to receive the full value of the Restricted Stock Units payable in either
Shares or cash.
	 
	8.3	 	Restrictions. A Holder’s right to retain Shares of Restricted Stock or be paid with respect
to Restricted Stock Units shall be subject to such restrictions, including him or her
continuing to perform as a Service Provider for a restriction period specified by the
Committee, or the attainment of specified performance goals and objectives, as may be
established by the Committee with respect to such Award. The Committee may in its sole
discretion require different periods of service or different performance goals and objectives
with respect to (i) different Holders, (ii) different Restricted Stock or Restricted Stock
Unit Awards, or (iii) separate, designated portions of the Shares constituting a Restricted
Stock Award. Any grant of Restricted Stock or Restricted Stock Units shall contain terms such
that the Award is either exempt from Code section 409A or complies with such section.

21

 

	8.4	 	Privileges of a Shareholder, Transferability. Unless otherwise provided in the Award
Agreement, a Participant shall have all voting, dividend, liquidation and other rights with
respect to Shares of Restricted Stock, provided however that any dividends paid on Shares of
Restricted Stock prior to such Shares becoming vested shall be held in escrow by the Company
and subject to the same restrictions on transferability and forfeitability as the underlying
Shares of Restricted Stock. Any voting, dividend, liquidation or other rights shall accrue to
the benefit of a Holder only with respect to Shares of Restricted Stock held by, or for the
benefit of, the Holder on the record date of any such dividend or voting date. A
Participant’s right to sell, encumber or otherwise transfer such Restricted Stock shall, in
addition to the restrictions otherwise provided for in the Award Agreement, be subject to the
limitations of Section 12.2 hereof. The Committee may determine that a Holder of Restricted
Stock Units is entitled to receive dividend equivalent payments on such units. If the
Committee determines that Restricted Stock Units shall receive dividend equivalent payments,
such feature will be specified in the applicable Award Agreement. Restricted Stock Units
shall not have any voting rights.
	 
	8.5	 	Enforcement of Restrictions. The Committee may in its sole discretion require one or more of
the following methods of enforcing the restrictions referred to in Section 8.2 and 8.3:

	 	(a)	 	placing a legend on the stock certificates, or the Restricted Stock Unit Award
Agreement, as applicable, referring to restrictions;
	 
	 	(b)	 	requiring the Holder to keep the stock certificates, duly endorsed, in the
custody of the Company while the restrictions remain in effect;
	 
	 	(c)	 	requiring that the stock certificates, duly endorsed, be held in the custody of
a third party nominee selected by the Company who will hold such Shares of Restricted
Stock on behalf of the Holder while the restrictions remain in effect; or
	 
	 	(d)	 	inserting a provision into the Restricted Stock Award Agreement prohibiting
assignment of such Award Agreement until the terms and conditions or restrictions
contained therein have been satisfied or released, as applicable.

	8.6	 	Termination of Service, Death, Disability, etc. In the event of the death or Disability of a
Participant, all service period and other restrictions applicable to Restricted Stock Awards
then held by him or her shall lapse, and such Awards shall become fully nonforfeitable.
Subject to Section 11, in the event a Participant ceases to be a Service Provider for any
other reason, any Restricted Stock Awards as to which the service period or other vesting
conditions for have not been satisfied shall be forfeited.

22

 

	SECTION 9

PERFORMANCE SHARES, PERFORMANCE UNITS, BONUS SHARES

AND DEFERRED SHARES

	9.1	 	Awards Granted by Committee. Coincident with or following designation for participation in
the Plan, a Participant may be granted Performance Shares or Performance Units.
	 
	9.2	 	Terms of Performance Shares or Performance Units. The Committee shall establish maximum and
minimum performance targets to be achieved during the applicable Performance Period. Each
grant of a Performance Share or Performance Unit Award shall be subject to additional terms
and conditions not inconsistent with the provisions of the Plan. The Committee shall
determine what, if any, payment is due with respect to an Award and whether such payment shall
be made in cash, Stock or some combination.
	 
	9.3	 	Bonus Shares. Subject to the terms of the Plan, the Committee may grant Bonus Shares to any
Participant, in such amount and upon such terms and at any time and from time to time as shall
be determined by the Committee.
	 
	9.4	 	Deferred Shares. Subject to the terms and provisions of the Plan, Deferred Shares may be
granted to any Participant in such amounts and upon such terms, and at any time and from time
to time, as shall be determined by the Committee. The Committee may impose such conditions or
restrictions on any Deferred Shares as it may deem advisable, including time-vesting
restrictions and deferred payment features. The Committee may cause the Company to establish
a grantor trust to hold Shares subject to Deferred Share Awards. Without limiting the
generality of the foregoing, the Committee may grant to any Participant, or permit any
Participant to elect to receive, Deferred Shares in lieu of or in substitution for any other
compensation (whether payable currently or on a deferred basis, and whether payable under this
Plan or otherwise) which such Participant may be eligible to receive from the Company or a
Subsidiary. Any grant of Deferred Shares shall comply with Section 409A of the Code.

SECTION 10

PERFORMANCE AWARDS; SECTION 162(M) PROVISIONS

	10.1	 	Terms of Performance Awards. Except as provided in Section 11, Performance Awards will be
issued or granted, or become vested or payable, only after the end of the relevant Performance
Period. The performance goals to be achieved for each Performance Period and the amount of
the Award to be distributed upon satisfaction of those performance
goals shall be conclusively determined by the Committee. When the Committee determines
whether a performance goal has been satisfied for any Performance Period, the Committee,
where the Committee deems appropriate, may make such determination using calculations which
alternatively include and exclude one, or more than one, “extraordinary items” as determined
under U.S. generally accepted accounting principles, and the Committee may determine whether
a performance goal has been satisfied for any Performance Period taking into account the
alternative which the Committee deems appropriate under the circumstances. The Committee
also may take into account any

23

 

	 	 	other unusual or non-recurring items, including the charges
or costs associated with restructurings of the Company, discontinued operations, and the
cumulative effects of accounting changes and, further, may take into account any unusual or
non-recurring events affecting the Company, changes in applicable tax laws or accounting
principles or such other factors as the Committee may determine reasonable and appropriate
under the circumstances (including any factors that could result in the Company’s paying
non-deductible compensation to an Employee, non-employee director or non-employee advisory
director).

	10.2	 	Performance Goals. If an Award is subject to this Section 10, then the lapsing of
restrictions thereon, or the vesting thereof, and the distribution of cash, Shares or other
property pursuant thereto, as applicable, shall be subject to the achievement of one or more
objective performance goals established by the Committee, which shall be based on the
attainment of one or any combination of the following metrics, and which may be established on
an absolute or relative basis for the Company as a whole or any of its subsidiaries, operating
divisions or other operating units:

	 	(a)	 	Earnings (either in the aggregate or on a per-Share basis);
	 
	 	(b)	 	Growth or rate of growth in earnings (either in the aggregate or on a per-Share
basis);
	 
	 	(c)	 	Net income or loss (either in the aggregate or on a per-Share basis);
	 
	 	(d)	 	Cash flow provided by operations, either in the aggregate or on a per-Share
basis;
	 
	 	(e)	 	Growth or rate of growth in cash flow (either in the aggregate or on a
per-Share basis);
	 
	 	(f)	 	Free cash flow (either in the aggregate on a per-Share basis);
	 
	 	(g)	 	Reductions in expense levels, determined either on a Company-wide basis or in
respect of any one or more business units;
	 
	 	(h)	 	Operating and maintenance cost management and employee productivity;
	 
	 	(i)	 	Shareholder returns (including return on assets, investments, equity, or gross
sales);
	 
	 	(j)	 	Return measures (including return on assets, equity, or sales);
	 
	 	(k)	 	Growth or rate of growth in return measures (including return on assets,
equity, or sales);
	 
	 	(l)	 	Share price (including attainment of a specified per-Share price during the
Performance Period; growth measures and total shareholder return or attainment by the
Shares of a specified price for a specified period of time);

24

 

	 	(m)	 	Strategic business criteria, consisting of one or more objectives based on
meeting specified revenue, market share, market penetration, geographic business
expansion goals, objectively identified project milestones, production volume levels,
cost targets, and goals relating to acquisitions or divestitures; and/or
	 
	 	(n)	 	Achievement of business or operational goals such as market share and/or
business development;

	 	 	provided that applicable performance goals may be applied on a pre- or post-tax basis; and
provided further that the Committee may, when the applicable performance goals are
established, provide that the formula for such goals may include or exclude items to measure
specific objectives, such as losses from discontinued operations, extraordinary gains or
losses, the cumulative effect of accounting changes, acquisitions or divestitures, foreign
exchange impacts and any unusual, nonrecurring gain or loss. In addition to the foregoing
performance goals, the performance goals shall also include any performance goals which are
set forth in a Company bonus or incentive plan, if any, which has been approved by the
Company’s shareholders, which are incorporated herein by reference. Such performance goals
shall be set by the Committee within the time period prescribed by, and shall otherwise
comply with the requirements of, Code Section 162(m).

	10.3	 	Adjustments. Notwithstanding any provision of the Plan other than Section 4.3 or Section 11,
with respect to any Award that is subject to this Section 10, the Committee may not adjust
upwards the amount payable pursuant to such Award, nor may it waive the achievement of the
applicable performance goals except in the case of the death or Disability of the Participant.
	 
	10.4	 	Other Restrictions. The Committee shall have the power to impose such other restrictions on
Awards subject to this Section 10 as it may deem necessary or appropriate to insure that such
Awards satisfy all requirements for “performance-based compensation” within the meaning of
Code Section 162(m)(4)(B).
	 
	10.5	 	Section 162(m) Limitations. Notwithstanding any other provision of this Plan, if the
Committee determines at the time any Award is granted to a Participant that such Participant
is, or is likely to be at the time he or she recognizes income for federal income tax purposes
in connection with such Award, a Covered Employee, then the Committee may provide that this
Section 10 is applicable to such Award.

SECTION 11

REORGANIZATION, CHANGE IN CONTROL OR LIQUIDATION

Except as otherwise provided in an Award Agreement or other agreement approved by the Committee to
which any Participant is a party, in the event that the Company undergoes a Change in Control, each
Option, share of Restricted Stock and/or other Award shall without regard to any vesting schedule,
restriction or performance target, automatically become fully exercisable, fully vested or fully
payable, as the case may be, as of the date of such Change in Control. In addition to the
foregoing, in the event the Company undergoes a Change in Control or in the event of a corporate
merger, consolidation, major acquisition of property (or stock),

25

 

separation, reorganization or
liquidation in which the Company is a party and in which a Change in Control does not occur, the
Committee, or the board of directors of any corporation assuming the obligations of the Company,
shall have the full power and discretion to prescribe and amend the terms and conditions for the
exercise, or settlement, of any outstanding Awards granted hereunder. The Committee may remove
restrictions on Restricted Stock and Restricted Stock Units and may modify the performance
requirements for any other Awards. The Committee may provide that Options or other Awards granted
hereunder must be exercised in connection with the closing of such transactions, and that if not so
exercised such Awards will expire. Any such determinations by the Committee may be made generally
with respect to all Participants, or may be made on a case-by-case basis with respect to particular
Participants. Notwithstanding the foregoing, any transaction undertaken for the purpose of
reincorporating the Company under the laws of another jurisdiction, if such transaction does not
materially affect the beneficial ownership of the Company’s capital stock, such transaction shall
not constitute a merger, consolidation, major acquisition of property for stock, separation,
reorganization, liquidation, or Change in Control.

SECTION 12

RIGHTS OF EMPLOYEES; PARTICIPANTS

	12.1	 	Employment. Nothing contained in the Plan or in any Award granted under the Plan shall
confer upon any Participant any right with respect to the continuation of his or her services
as a Service Provider or interfere in any way with the right of the Company, subject to the
terms of any separate employment or consulting agreement to the contrary, at any time to
terminate such services or to increase or decrease the compensation of the Participant from
the rate in existence at the time of the grant of an Award. Whether an authorized leave of
absence, or absence in military or government service, shall constitute a termination of
Participant’s services as a Service Provider shall be determined by the Committee at the time.
	 
	12.2	 	Nontransferability. Except as provided in Section 12.3, no right or interest of any Holder
in an Award granted pursuant to the Plan shall be assignable or transferable during the
lifetime of the Participant, either voluntarily or involuntarily, or be subjected to any lien,
directly or indirectly, by operation of law, or otherwise, including execution, levy,
garnishment, attachment, pledge or bankruptcy. In the event of a Participant’s death, a
Holder’s rights and interests in all Awards shall, to the extent not otherwise prohibited
hereunder, be transferable by testamentary will or the laws of descent and distribution,
and payment of any amounts due under the Plan shall be made to, and exercise of any Options
or SARs may be made by, the Holder’s legal representatives, heirs or legatees. If, in the
opinion of the Committee, a person entitled to payments or to exercise rights with respect
to the Plan is disabled from caring for his or her affairs because of a mental condition,
physical condition or age, payment due such person may be made to, and such rights shall be
exercised by, such person’s guardian, conservator, or other legal personal representative
upon furnishing the Committee with evidence satisfactory to the Committee of such status.
“Transfers” shall not be deemed to include transfers to the Company or “cashless exercise”
procedures with third parties who provide financing for

26

 

	 	 	the purpose of (or who otherwise
facilitate) the exercise of Awards consistent with applicable laws and the authorization of
the Committee.

	12.3	 	Permitted Transfers. Pursuant to conditions and procedures established by the Committee from
time to time, the Committee may permit Awards to be transferred to, exercised by and paid to
certain persons or entities related to a Participant, including members of the Participant’s
immediate family, charitable institutions, or trusts or other entities whose beneficiaries or
beneficial owners are members of the Participant’s immediate family and/or charitable
institutions (a “Permitted Transferee”). In the case of initial Awards, at the request of the
Participant, the Committee may permit the naming of the related person or entity as the Award
recipient. Any permitted transfer shall be subject to the condition that the Committee
receive evidence satisfactory to it that the transfer is being made for estate and/or tax
planning purposes on a gratuitous or donative basis and without consideration (other than
nominal consideration). Notwithstanding the foregoing, Incentive Stock Options shall only be
transferable to the extent permitted in Section 422 of the Code, or such successor provision
thereto, and the treasury regulations thereunder.

SECTION 13

GENERAL RESTRICTIONS

	13.1	 	Investment Representations. The Company may require any person to whom an Option or other
Award is granted, as a condition of exercising such Option or receiving Stock under the Award,
to give written assurances in substance and form satisfactory to the Company and its counsel
to the effect that such person is acquiring the Stock subject to the Option or the Award for
his or her own account for investment and not with any present intention of selling or
otherwise distributing the same, and to such other effects as the Company deems necessary or
appropriate in order to comply with federal and applicable state securities laws. Legends
evidencing such restrictions may be placed on the certificates evidencing the Stock.
	 
	13.2	 	Compliance with Securities Laws.

	 	(a)	 	Each Award shall be subject to the requirement that, if at any time counsel to
the Company shall determine that the listing, registration or qualification of the
Shares subject to such Award upon any securities exchange or under any state or federal
law, or the consent or approval of any governmental or regulatory body, is
necessary as a condition of, or in connection with, the issuance or purchase of
Shares thereunder, such Award may not be accepted or exercised in whole or in part
unless such listing, registration, qualification, consent or approval shall have
been effected or obtained on conditions acceptable to the Committee. Nothing herein
shall be deemed to require the Company to apply for or to obtain such listing,
registration or qualification.
	 
	 	(b)	 	Each Holder who is a director or an Executive Officer is restricted from taking
any action with respect to any Award if such action would result in a (i) violation of
Section 306 of the Sarbanes-Oxley Act of 2002, and the regulations

27

 

	 	 	 	promulgated thereunder, whether or not such law and regulations are applicable to the Company, or
(ii) any policies adopted by the Company restricting transactions in the Stock.

	13.3	 	Stock Restriction Agreement. The Committee may provide that Shares issuable upon the
exercise of an Option shall, under certain conditions, be subject to restrictions whereby the
Company has (i) a right of first refusal with respect to such Shares, (ii) specific rights or
limitations with respect to the Participant’s ability to vote such Shares, or (iii) a right or
obligation to repurchase all or a portion of such Shares, which restrictions may survive a
Participant’s cessation or termination as a Service Provider.

SECTION 14

OTHER EMPLOYEE BENEFITS

The amount of any compensation deemed to be received by a Participant as a result of the exercise
of an Option or the grant, payment or vesting of any other Award shall not constitute “earnings”
with respect to which any other benefits of such Participant are determined, including benefits
under (a) any pension, profit sharing, life insurance or salary continuation plan or other employee
benefit plan of the Company or (b) any agreement between the Company and the Participant, except as
such plan or agreement shall otherwise expressly provide.

SECTION 15

PLAN AMENDMENT, MODIFICATION AND TERMINATION

	15.1	 	Amendment, Modification, and Termination. The Board may at any time terminate, and from time
to time may amend or modify, the Plan; provided, however, that no amendment or modification
may become effective without approval of the amendment or modification by the shareholders if
shareholder approval is required to enable the Plan to satisfy any applicable statutory or
regulatory requirements, to comply with the requirements for listing on any exchange where the
Shares are listed, or if the Company, on the advice of counsel, determines that shareholder
approval is otherwise necessary or desirable.
	 
	15.2	 	Adjustment Upon Certain Unusual or Nonrecurring Events. The Board may make adjustments in
the terms and conditions of Awards in recognition of unusual or nonrecurring events (including
the events described in Section 4.3) affecting the
Company or the financial statements of the Company or of changes in applicable laws,
regulations, or accounting principles, whenever the Board determines that such adjustments
are appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan.
	 
	15.3	 	Awards Previously Granted. Notwithstanding any other provision of the Plan to the contrary
(but subject to a Holder’s employment being terminated for Cause and Section 15.2), no
termination, amendment or modification of the Plan shall adversely affect in any material way
any Award previously granted under the Plan, without the written consent of the Holder of such
Award.

28

 

SECTION 16

WITHHOLDING

	16.1	 	Withholding Requirement. The Company’s obligations to deliver Shares upon the exercise of an
Option, or upon the vesting of any other Award, shall be subject to the Participant’s
satisfaction of all applicable federal, state and local income and other tax withholding
requirements.
	 
	16.2	 	Withholding with Stock. The Committee may, in its sole discretion, permit the Holder to pay
all minimum required amounts of tax withholding, or any part thereof, by electing to transfer
to the Company, or to have the Company withhold from the Shares otherwise issuable to the
Holder, Shares having a value not to exceed the minimum amount required to be withheld under
federal, state or local law or such lesser amount as may be elected by the Holder. The
Committee may require that any shares transferred to the Company have been held or owned by
the Participant for a minimum period of time. All elections shall be subject to the approval
or disapproval of the Committee. The value of Shares to be withheld shall be based on the Fair
Market Value of the Stock on the date that the amount of tax to be withheld is to be
determined (the “Tax Date”), as determined by the Committee. Any such elections by Holder to
have Shares withheld for this purpose will be subject to the following restrictions:

	 	(a)	 	All elections must be made prior to the Tax Date;
	 
	 	(b)	 	All elections shall be irrevocable; and
	 
	 	(c)	 	If the Participant is an officer or director of the Company within the meaning
of Section 16 of the 1934 Act (“Section 16”), the Participant must satisfy the
requirements of such Section 16 and any applicable rules thereunder with respect to the
use of Stock to satisfy such tax withholding obligation.

SECTION 17

NONEXCLUSIVITY OF THE PLAN

	17.1	 	Nonexclusivity of the Plan. Neither the adoption of the Plan nor the submission of the Plan
to shareholders of the Company for approval shall be construed as creating any limitations on
the power or authority of the Board or of the Committee to continue to
maintain or adopt such other or additional incentive or other compensation arrangements of
whatever nature as the Board or the Committee, as the case may be, may deem necessary or
desirable, or to preclude or limit the continuation of any other plan, practice or
arrangement for the payment of compensation or fringe benefits to employees, non-employee
directors or non-employee advisory directors generally, or to any class or group of
employees, non-employee directors or non-employee advisory directors, which the Company now
has lawfully put into effect, including any retirement, pension, savings and stock purchase
plan, insurance, death and disability benefits and executive short-term incentive plans.

29

 

SECTION 18

REQUIREMENTS OF LAW

	18.1	 	Requirements of Law. The issuance of Stock and the payment of cash pursuant to the Plan
shall be subject to all applicable laws, rules and regulations, and to such approvals by any
governmental agencies or stock exchanges as may be required. Notwithstanding any provision of
the Plan or any Award, Holders shall not be entitled to exercise or receive benefits under any
Award, and the Company shall not be obligated to deliver any Shares or other benefits to a
Holder, if such exercise, receipt of benefits or delivery would constitute a violation by the
Holder or the Company of any applicable law or regulation.
	 
	18.2	 	Code Section 409A. This Plan is intended to meet or to be exempt from the requirements of
Section 409A of the Code, and shall be administered, construed and interpreted in a manner
that is in accordance with and in furtherance of such intent. Any provision of this Plan that
would cause an Award to fail to satisfy Section 409A of the Code or, if applicable, an
exemption from the requirements of that Section, shall be amended (in a manner that as closely
as practicable achieves the original intent of this Plan) to comply with Section 409A of the
Code or any such exemption on a timely basis, which may be made on a retroactive basis, in
accordance with regulations and other guidance issued under Section 409A of the Code.
	 
	18.3	 	Rule 16b-3. Each transaction under the Plan is intended to comply with all applicable
conditions of Rule 16b-3, to the extent Rule 16b-3 reasonably may be relevant or applicable to
such transaction. To the extent any provision of the Plan or any action by the Committee
under the Plan fails to so comply, such provision or action shall, without further action by
any person, be deemed to be automatically amended to the extent necessary to effect compliance
with Rule 16b-3; provided, however, that if such provision or action cannot be amended to
effect such compliance, such provision or action shall be deemed null and void to the extent
permitted by law and deemed advisable by the Committee.
	 
	18.4	 	Governing Law. The Plan and all agreements hereunder shall be construed in accordance with
and governed by the laws of the state of Missouri without giving effect to the principles of
the conflict of laws to the contrary.

[The remainder of this page intentionally has been left blank]

30

 

SUBJECT TO THE SHAREHOLDER APPROVAL REQUIREMENT NOTED BELOW, THIS EXCHANGE NATIONAL BANCSHARES,
INC. 2007 OMNIBUS INCENTIVE PLAN HEREBY IS ADOPTED BY THE BOARD OF DIRECTORS OF EXCHANGE NATIONAL
BANCSHARES, INC. THIS 14th DAY OF FEBRUARY, 2007.

THE PLAN SHALL BECOME EFFECTIVE ONLY IF APPROVED BY THE SHAREHOLDERS OF THE COMPANY AND THE
EFFECTIVE DATE OF THE PLAN SHALL BE SUCH DATE OF SHAREHOLDER APPROVAL.

	 	 	 	 	 
	 	EXCHANGE NATIONAL BANCSHARES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

31Exhibit 10.6 (a)

Exhibit 10.6 (a)

VWR INTERNATIONAL, INC.

1310 Goshen Parkway

PO Box 2656

West Chester, Pennsylvania, 19380

June 29, 2007

Greg Cowan

4 Whitemarsh Court

Marlton, NJ 08053

Dear Greg:

I am pleased to confirm the terms of your continuing employment with VWR International, Inc.
(“VWR”). The terms are as follows:

	 	 	 
	Position:

	 	Controller, Global.
	 
	 	 
	Base Salary:

	 	$295,000 per year, payable in installments on VWR’s
regular payroll dates.
	 
	 	 
	Duties:

	 	Those duties performed by you as of immediately prior to
the date of this Agreement.
	 
	 	 
	Reporting:

	 	You will report solely and directly to Jack Wyszomierski.
	 
	 	 
	Office Location:

	 	Your office will be located in West Chester, PA.
	 
	 	 
	Annual Bonus:

	 	You will be eligible to participate in VWR’s management
incentive program with a target bonus of 60% of base
salary.
	 
	 	 
	Benefits:

	 	You will be entitled to participate in all vacation,
health, welfare and other similar benefits available to
senior executives of VWR. You will be entitled to four
weeks of vacation.
	 
	 	 
	Severance/Restrictive
Covenants:

	 	If your employment with VWR and its affiliates is
terminated (i) by VWR or its affiliates without Cause
(as defined on Annex 1) or (ii) by you for Good Reason
(as defined on Annex 1), you will be entitled to receive
(A) an aggregate amount equal to one and a half times
the sum of your base salary then in effect and your
target bonus for the year in which such termination
occurs, payable in equal installments on VWR’s regular
payroll dates during a period of twelve months after
such termination and (B) continued health benefits for a
period of twelve months after such termination. These
payments (i) would be subject to your execution of a
general release in the form attached hereto as Annex 2,
(ii) shall be in lieu of any other severance payments
you are entitled to under any agreements or plans and
(iii) shall be reduced to the extent you are entitled to
any similar severance payments or health benefits from
VWR under

 

 

 

	 	 	 
	 

	 	applicable law so as not to be duplicative
with such legally required payments or benefits. You
agree to be subject to those restrictions set forth on
Annex 1 attached hereto, which are a part of this letter
agreement (the “Employee Covenants”).
	 
	 	 
	 

	 	If your employment with VWR and its affiliates is
terminated by VWR or its affiliates by reason of your
Disability (as defined on Annex 1), you will be entitled
to receive a lump sum payment as soon as practicable
following such termination in an amount equal to the
target amount of your bonus for the year in which such
termination occurs, prorated for the portion of such
year during which you were employed with VWR. In
addition, you shall be entitled to receive payments of
your base salary until payments to you under VWR’s
long-term disability plan commence but in any event for
a period not to exceed 18 months from the date of your
termination.
	 
	 	 
	 

	 	If your employment with VWR and its affiliates is
terminated by reason of your death, your beneficiary or
estate, as applicable, will be entitled to receive a
lump sum payment as soon as practicable following your
death in an amount equal to the target amount of your
bonus for the year in which such termination occurs,
prorated for the portion of such year during which you
were employed with VWR.
	 
	 	 
	 

	 	You shall be under no obligation to seek other
employment for any reason or to mitigate any severance
payments following a termination of your employment with
VWR and its affiliates for any reason. In addition,
there shall be no offset against amounts due to you upon
termination of your employment with VWR and its
affiliates on account of any compensation attributable
to any employment subsequent to your employment with VWR
and its affiliates. Either you or VWR may termination
your employment with VWR and its affiliates at any time.
	 
	 	 
	 

	 	Except as provided above in this Severance/Restrictive
Covenants section, you shall not be entitled to any
other salary, compensation or benefits from VWR or its
affiliates after termination of your employment with VWR
or its affiliates, except as otherwise specifically
provided for in VWR’s or its affiliates’ employee
benefit plans or as otherwise expressly required by
applicable law.
	 
	 	 
	 

	 	Notwithstanding anything herein to the contrary, if any
payments due hereunder would subject you to any tax
imposed under Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”), as a result of your
characterization as a “specified employee” of VWR
(within the meaning of Treasury Regulation Section
1.409A-1(i)), then such payments that would otherwise
cause such taxation shall be payable in a single lump
sum on the first business day that is six months
following your “separation from service” (within the
meaning of Code Section 409A and the regulations
thereunder), and any

 

2

 

	 	 	 
	 

	 	remaining payments will be made in
accordance with the foregoing provisions of this
section.
	 
	 	 
	Legal Fees:

	 	In the event of a contest between you and VWR or its
subsidiaries or affiliates regarding a breach or alleged
breach of this Agreement in which you substantially
prevail, then VWR agrees to pay (within ten business
days of receipt of an invoice from you), all reasonable
legal fees and expenses that you have incurred as a
result of such contest.
	 
	 	 
	Personal Services 

Agreement:

	 	On the date hereof, you agree to enter into a Personal
Services, Confidentiality and Inventions Agreement with
VWR, in the form attached hereto as Exhibit A.
	 
	 	 
	Entire Agreement:

	 	This letter agreement, (including any Annexes attached
hereto) and the Personal Services, Confidentiality and
Inventions Agreement referenced above set forth the
entire understanding between you and VWR and/or its
affiliates with respect to the subject matter hereof and
thereof, and supersede and preempt all prior oral or
written understandings and agreements with respect to
the subject matter hereof and thereof between you and
VWR and/or any of its affiliates, which shall terminate
and be of no further effect upon the execution of this
letter agreement.
	 
	 	 
	Tax and Financial
Planning Services:

	 	You will be provided a personal executive financial
advisor by VWR to assist you with financial and estate
planning, asset management, tax planning and
preparation.
	 
	 	 
	Car Allowance:

	 	You will be entitled to receive an executive car
allowance in an amount consistent with your current car
allowance, if any.

Greg, I am excited to have you continue on the VWR team. If you have any questions, please do not
hesitate to call me at (610) 692-1060.

	 	 	 	 	 
	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ John M. Ballbach
 

John Ballbach
	 	 
	 
	 	 	 	 
	Accepted and Agreed
	 	 	 	 
	 
	 	 	 	 
	/s/ Gregory L. Cowan
 

Greg Cowan

	 	 	 	 
	 
	 	 	 	 
	Date: 06/28/07
	 	 	 	 

 

3

 

Exhibit A — Personal Services, Confidentiality and Inventions Agreement

See Attached.

 

 

 

VWR International, Inc.

PERSONAL SERVICES, CONFIDENTIALITY AND INVENTIONS AGREEMENT

THIS AGREEMENT (this “Agreement”) is between VWR International, Inc., presently
headquartered at 1310 Goshen Parkway, West Chester, Pennsylvania, 19380 (“VWR”) and Greg
Cowan (“Executive” or “I”) who is employed by VWR.

VWR’s sound business policy requires that its trade secrets, technical and non-technical
know-how, business knowledge, plans, systems, business methods, business records and customer
relations to be protected and not utilized by any person or firm who competes or wants to compete
with VWR. The parties wish to evidence the terms of the employment relationship between them and
particularly to set forth certain restrictions which shall apply to Executive in the event of
termination of his/her employment with VWR.

In consideration of and as part of the terms of employment by VWR, it is agreed as follows:

	1.	 	Compensation and Benefits. Executive shall be entitled to a salary, annual bonus and other
monetary compensation, which shall be established by VWR at the inception of employment, and
may be periodically thereafter adjusted for increase only. Executive shall also be entitled
to participate in various VWR employee benefit plans (for example, health insurance,
retirement, and the like), in accordance with the participation requirements of said plans,
and nothing contained herein shall confer benefit eligibility which is in any manner
inconsistent with the terms of the benefit plans.

	2.	 	Executive’s General Obligations; Conflicts of Interest. During my employment with VWR, I
agree to devote substantially all my working time during normal business hours to VWR. During
my employment with VWR, I agree to use my best efforts to perform the duties associated with
my position and title with VWR as VWR may direct, not to engage in any other business or
activity the nature of which shall be determined by VWR to be competitive with VWR, its
suppliers or its customers and to comply with any Conflict of Interest Policy of VWR;
provided that, with the approval of VWR, which such approval shall not be unreasonably
delayed or withheld, I may serve on the board of directors of one public company. I further
agree to conform to all VWR policies, practices, and procedures, to the extent such policies,
practices and procedures have been provided to me in writing, as well as lawful directions of
VWR and/or its affiliates as to performance of services for VWR, to the extent that the same
are consistent with my position and title with VWR.

	3.	 	No Existing Restrictive Agreements. I represent that I am not a party to any contract
limiting my present or future right to work for VWR or to perform such activities as shall be
required from time to time by VWR.

	4.	 	Prior Employer Information. I agree that I will not use improperly or disclose any
confidential or proprietary information or trade secrets of my former or current employers,
principals, partners, co-venturers, customers, or suppliers, or the vendors or customers of
such persons or entities, and I will not violate any nondisclosure or proprietary rights
agreement I might have signed in connection with any such employer, person or entity.

 

 

 

	5.	 	Non-Disclosure of Information. I recognize that, in the performance of my duties with VWR,
Confidential Information belonging to VWR will come into my possession, including, without
limitation, information regarding business methods, plan, systems, customer lists and customer
relations, vendor lists and vendor relations, cost and pricing information, distribution and
logistical information, and other information relating to the business of VWR that is not
known to the general public. I recognize that the business of VWR is materially dependent
upon the relationship between VWR and its customers who are serviced by its associates and
that VWR has and will entrust me with Confidential Information, that must remain the property
of VWR. As used in this Agreement, “Confidential Information” shall mean the trade
secrets, technical and non-technical know-how, technical and business knowledge and
information, plans and systems, business methods, customer lists and customer relations of
VWR, including but not limited to research, development, manufacturing, purchasing,
accounting, data processing, engineering, marketing, merchandising, selling and invoicing,
which information is acquired from or through VWR during the course of my employment by VWR.
“Confidential Information” shall not include any information that is or becomes
publicly known or that enters the public domain other than as a result of my breach of my
obligations under this Agreement or any other agreement between me and VWR or its affiliates.
I agree that I will not at any time hereafter disclose Confidential Information to third
parties or use Confidential Information for any purpose other than to further VWR’s business,
except as is required by law, any court of competent jurisdiction or any governmental agency
or authority or recognized subpoena power.

	6.	 	Assignment of Inventions. I will make prompt and full disclosure to VWR, will hold in trust
for the sole benefit of VWR, and will assign, exclusively to VWR all my right, title, and
interest in and to any and all inventions, discoveries, designs, developments, improvements,
copyrightable material, and trade secrets (collectively herein “Inventions”) that I,
solely or jointly, may conceive, develop, or reduce to practice during the period of time I am
in the employ of VWR. I hereby waive and quitclaim to VWR any and all claims of any nature
whatsoever that I now or hereafter may have for infringement of any patent resulting from any
patent applications for any Inventions so assigned to VWR.

My obligation to assign shall not apply to any Invention about which I can prove that:

	 	(a)	 	it was developed entirely on my own time; and

	 
	 	(b)	 	no equipment, supplies, facility, services, or trade secret information of VWR
were used in its development; and

	 
	 	(c)	 	it does not relate (i) directly to the business of VWR or (ii) to the actual or
demonstrably anticipated research or development of VWR; and

	 
	 	(d)	 	it does not result from any work performed by me for VWR.

	7.	 	Excluded and Licensed Inventions. I have attached hereto a list describing all Inventions
belonging to me and made by me prior to my employment with VWR that I wish to have excluded
from this Agreement. If no such list is attached, I represent that there are no such
Inventions. If in the course of my employment at VWR, I incorporate into a VWR product,
process, or machine, an Invention owned by me or

 

2

 

	 	 	in which I have an interest, VWR is hereby granted and shall have an exclusive royalty-free,
irrevocable, worldwide license to make, have made, use, and sell that Invention without
restriction as to the extent of my ownership or interest.

	8.	 	Application for Copyrights and Patents. I will execute any proper oath or verify any proper
document in connection with carrying out the terms of this Agreement. If, because of my
mental or physical condition or for any other reason whatsoever, VWR is unable to secure my
signature to apply for or to pursue any application for any United States or foreign patent or
copyright covering Inventions assigned to VWR as stated above, I hereby irrevocably designate
and appoint VWR and its duly authorized officers and agents as my agent and attorney in fact,
to act for me and in my behalf and stead to execute and file any such applications and to do
all other lawfully permitted acts to further the prosecution and issuance of U.S. and foreign
patents and copyrights thereon with the same legal force and effect as if executed by me. I
will testify at VWR’s request and expense in any interference, litigation, or other legal
proceeding that may arise during or after my employment.

	9.	 	Third Party Information. I recognize that VWR has received and will receive confidential or
proprietary information from third parties subject to a duty on VWR’s part to maintain the
confidentiality of such information and to use it only for certain limited purposes. This
information shall be deemed not to include shall not include any information that is or
becomes publicly known or that enters the public domain other than as a result of my breach of
my obligations under this Agreement or any other agreement between me and VWR or its
affiliates. During the term of my employment and thereafter I will not disclose nor use such
information for the benefit of anyone other than VWR or such third party, or in any manner
inconsistent with any agreement between VWR and such third party of which I am made aware,
except as is required by law, any court of competent jurisdiction or any governmental agency
or authority or recognized subpoena power.

	10.	 	Termination. I acknowledge that this Agreement shall not constitute a contract for
employment for any specific period of time, and that either VWR or I am free to terminate this
Agreement, and employment relationship, “at will,” at any time, with or without cause. I
agree that upon termination of this Agreement and my employment, for any or no reason, I will
promptly return to VWR all records of Confidential Information, including copies in my
possession, and all other physical properties issued to me as an employee, in a reasonable
state of function or repair. I will also so return any keys, pass cards, identification cards
or other property belonging to VWR.

	11.	 	Non-Waiver. The failure by VWR to enforce any of the provisions hereof upon any default by
me at a particular time or under certain circumstances shall not be treated as a permanent
waiver of such provisions and shall not prevent subsequent enforcement of such provisions upon
default by either party.

	12.	 	Irreparable Harm. I agree that any proven breach of this Agreement by me would cause
irreparable harm to VWR for which monetary damages could not adequately compensate. If VWR
proves a breach, irreparable harm shall be presumed and I expressly waive any bonding
requirement as a prerequisite to VWR obtaining injunctive relief. VWR can also seek damages.

 

3

 

	13.	 	Assignability of This Agreement. The services contracted for between VWR and me in this
Agreement are personal, and therefore I may not assign this Agreement to any other person or
entity. This Agreement may, however, be assigned by VWR to a successor to the business of
VWR.

	14.	 	Severability. It is the intention of the parties that this Agreement shall be enforceable to
the fullest extent permitted by local, state, and/or federal law in the jurisdiction in which
performance of this Agreement occurs, or in which performance of this Agreement is sought to
be enforced. In the event that a court of competent jurisdiction determines that one or more
provisions of this Agreement are not enforceable under the provisions of the jurisdiction in
which performance occurs or enforcement is sought, such a determination shall not affect the
enforceability of the remainder of this Agreement.

	15.	 	Other Agreements. This Agreement, together with the letter agreement, dated June 29, 2007,
between me and VWR (the “Letter Agreement”), sets forth the sole and entire agreement
between the parties hereto, and supersedes and replaces any and all prior agreements, whether
oral, written, or implied, entered into by me and VWR, pertaining to my employment, the terms,
conditions, and responsibilities thereof, and/or any other subject matter contained in this
Agreement or the Letter Agreement. This Agreement and the Letter Agreement shall be
considered together as one agreement. There will be no modification of this Agreement, either
verbal, implied, written, or otherwise, except through a written agreement signed by me, and
an officer of VWR, which refers to the specific paragraph of this Agreement intended to be
modified, and sets forth, in writing, the specific modification of said paragraph.

 

4

 

WITNESS WHEREFORE, the parties have executed this Agreement as of the 29th day of
June, 2007.

	 	 	 	 	 	 	 
	/s/ Gregory L. Cowan	 	VWR International, Inc.	 	 
	 

Executive — Signature

	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles F. Canfield	 	 
	 

	 	 	 	 

Its: Senior Vice President — Human Resources
	 	 
	Gregory L. Cowan
	 	 	 	 	 	 
	 

Executive — Print Name

	 	 	 	 	 	 

 

 

 

Annex 1 — Employee Covenants

1. Noncompetition and Nonsolicitation. You acknowledge that in the course of your
employment with VWR or any of its Subsidiaries or Affiliates you will become familiar with VWR’s
and its Subsidiaries’ and Affiliates’ trade secrets and with other confidential information
concerning VWR and such Subsidiaries and Affiliates and that your services will be of special,
unique and extraordinary value to VWR and such Subsidiaries and Affiliates. Therefore, you agree
that:

(a) Noncompetition. During the Employment Period and for a period of twelve months
thereafter, you shall not directly or indirectly, anywhere in the world, own, manage, control,
participate in, consult with, render services for or enter into employment with any distributor
with annual sales revenue exceeding $200,000,000 in the laboratory supplies industry (the
“Business”). Nothing herein shall prohibit you from being a passive owner of not more than
2% of the outstanding stock of any class of a corporation that is publicly traded, so long as you
have no active participation in the business of such corporation.

(b) Nonsolicitation. During the Employment Period and for a period of eighteen months
thereafter, you shall not directly or indirectly (i) induce or attempt to induce any employee of
VWR or any of its Subsidiaries or Affiliates to leave the employ of VWR or any such Subsidiary or
Affiliate, or in any way interfere with the relationship between VWR or any of its Subsidiaries or
Affiliates and any employee thereof, (ii) hire any person who was an employee of VWR or any of its
Subsidiaries or Affiliates within 180 days after a Separation, (iii) induce or attempt to induce
any customer, supplier, licensee or other business relation of VWR or any of its Subsidiaries or
Affiliates to cease doing business with VWR or such Subsidiary or Affiliate or in any way interfere
with the relationship between any such customer, supplier, licensee or business relation and VWR or
any of its Subsidiaries or Affiliates or (iv) directly or indirectly acquire or attempt to acquire
an interest in any business relating to the Business and with which VWR or any of its Subsidiaries
or Affiliates has entertained discussions relating to the acquisition of such business by VWR or
any of its Subsidiaries or Affiliates in the twelve month period immediately preceding a
Separation.

(c) Enforcement. If, at the time of enforcement of Section 1 or 2, a
court holds that the restrictions stated herein are unreasonable under circumstances then existing,
the parties hereto agree that the maximum duration, scope or geographical area reasonable under
such circumstances shall be substituted for the stated period, scope or area and that the court
shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope
and area permitted by law. Because your services are unique and because you have access to
confidential information, the parties hereto agree that money damages would be an inadequate remedy
for any breach of this Annex 1. Therefore, in the event a breach or threatened breach of
this Annex 1, VWR or any of its Subsidiaries or Affiliates or their successors or assigns
may, in addition to other rights and remedies existing in their favor, apply to any court of
competent jurisdiction for specific performance and/or injunctive or other relief in order to
enforce, or prevent any violations of, the provisions hereof (without posting a bond or other
security).

(d) Additional Acknowledgments. You acknowledge that the provisions of Sections
1 and 2 are in consideration of: (i) employment with VWR or its Subsidiaries or
Affiliates and (ii) additional good and valuable consideration, including the payment of salary and
bonus, as set forth in this letter agreement. In addition, you agree and acknowledge that the
restrictions contained in Sections 1 and 2 do not preclude you from earning a
livelihood,

 

 

 

nor do they unreasonably impose limitations on your ability to earn a living. In addition,
you acknowledge (A) that the business of VWR and its Subsidiaries and Affiliates will be conducted
throughout the world, (B) notwithstanding the state of incorporation or principal office of VWR or
any of its Subsidiaries or Affiliates, or any of their respective executives or employees
(including you), it is expected that VWR and its Subsidiaries and Affiliates will have business
activities and have valuable business relationships within its industry throughout the world, and
(C) as part of your responsibilities, you will be traveling throughout the world in furtherance of
VWR’s or any of its Subsidiaries’ or Affiliates’ business and relationships. You agree and
acknowledge that the potential harm to VWR and any of its Subsidiaries and Affiliates of the
non-enforcement of Sections 1 and 2 outweighs any potential harm to you of its
enforcement by injunction or otherwise. You acknowledge that you have carefully read this
Annex 1 and have given careful consideration to the restraints imposed upon you by this
Annex 1, and are in full accord as to their necessity for the reasonable and proper
protection of confidential and proprietary information of VWR and any of its Subsidiaries and
Affiliates now existing or to be developed in the future. You expressly acknowledge and agree that
each and every restraint imposed by this Annex 1 is reasonable with respect to subject
matter, time period and geographical area.

2. Definitions.

“Affiliate” means, with respect to any Person, any Person that controls, is controlled
by or is under common control with such Person or an Affiliate of such Person.

“Board” means VWR’s board of directors.

“Cause” means (i) the conviction of a felony or the commission of fraud with respect
to VWR or any of its Subsidiaries or Affiliates or any of their customers or suppliers, (ii)
substantial and repeated failure to perform duties as reasonably directed by the Board or a
supervisor or report, after providing you with 15 days’ prior written notice and a reasonable
opportunity to remedy such failure and (iii) gross negligence or willful misconduct with respect to
VWR or any of its Subsidiaries or Affiliates. “Cause” shall be deemed not to include any act or
failure to act, on your part, unless it is done, or omitted to be done, by you in bad faith or
without reasonable belief that your action or omission was in the best interests of VWR or any of
its respective Affiliates. Any act, or failure to act, based upon authority given pursuant to a
direction from the Board or based upon the advice of counsel for VWR or any of its respective
Affiliates shall be conclusively presumed to be done, or omitted to be done, by you in good faith
and in the best interests of VWR and its Affiliates. Your cessation of employment shall not be
deemed to be for Cause unless and until (i) there shall have been delivered to you a copy of a
resolution duly adopted by the affirmative vote of at least a majority of the entire membership of
the Board (excluding for this purpose any seat on the Board then held by you) at a meeting of the
Board called and held for such purpose (after reasonable notice is provided to you and you are
given an opportunity, together with counsel, to be heard before the Board), finding that, in the
good faith opinion of the Board, that Cause exists for the termination of your employment, and
specifying the particulars thereof in reasonable detail and (ii) if capable of cure within 30 days,
you shall have been given 30 days from the date of the meeting of the Board at which you were given
an opportunity, together with counsel, to be heard by the Board to cure the conduct specified by
the Board. At any such Board meeting, you shall be automatically recused from participation in
such meeting as a member of the Board.

 

2

 

“Disability” means any physical or mental injury, illness or incapacity as a result of
which you are unable to perform the functions of your duties for a continuous period of more than
90 days or for 120 days (whether or not continuous) within a 180 day period, as reasonably
determined by the Board in good faith.

“Employment Period” means the period during which you are employed by VWR or any of
its Subsidiaries or Affiliates, regardless of whether such employment is pursuant to the terms of
this Letter Agreement or another agreement.

“Good Reason” means (i) VWR materially changes your authority, titles, reporting
rights or obligations, and/or duties in a manner inconsistent with the position you currently hold
or as described in the Letter Agreement, (ii) VWR fails to make any payment to you, or provide you
with any benefit, required to be paid or provided to you pursuant to the Letter Agreement, (iii)
VWR reduces your base salary and/or bonus entitlement described in your Letter Agreement, (iv) a
relocation of your principal place of employment to a location that increases your commuting
distance by more than 25 miles, except for travel by you on company business or (v) any successor
to the business of VWR fails to assume VWR’s obligations under the Letter Agreement;
provided that, in order for your resignation for Good Reason to be effective, written
notice of the occurrence any event that constitutes Good Reason must be delivered by you to VWR
within 180 days after you have actual knowledge of the occurrence of any such event and the
occurrence of such event is not cured by VWR within ten (10) days after the date of such written
notice by you to VWR.

“Person” means an individual, a partnership, a limited liability company, a
corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization, investment fund, any other business entity and a governmental entity or any
department, agency or political subdivision thereof.

“Separation” means you ceasing to be employed by VWR or any of it Subsidiaries or
Affiliates for any reason.

“Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association, or 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, managers, or trustees thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company,
partnership, association, or other business entity (other than a corporation), a majority of
partnership or other similar ownership interest 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. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association, or other business entity (other
than a corporation) if such Person or Persons shall be allocated a majority of limited liability
company, partnership, association, or other business entity gains or losses or shall be or control
any managing director or general partner of such limited liability company, partnership,
association, or other business entity. For purposes hereof, references to a “Subsidiary”
of any Person shall be given effect only at such times that such Person has one or more
Subsidiaries, and, unless otherwise indicated, the term “Subsidiary” refers to a Subsidiary
of VWR.

3. Miscellaneous.

 

3

 

(a) Applicable Law. This Annex 1 shall be governed by, and construed in
accordance with, the laws of the State of Pennsylvania, without giving effect to any choice of law
or conflict of law rules or provisions (whether of the State of Pennsylvania or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State
of Pennsylvania.

(b) Consent to Jurisdiction. You hereby irrevocably submit to the nonexclusive
jurisdiction of the United States District Court for the Eastern District of Pennsylvania and the
state courts of the State of Pennsylvania for the purposes of any suit, action or other proceeding
arising out of this Annex 1 or any transaction contemplated hereby. You further agree that
service of any process, summons, notice or document by certified or registered mail to your address
as listed above or such other address or to the attention of such other person as you have
specified by prior written notice to VWR shall be effective service of process in any action, suit
or proceeding in the State of Pennsylvania with respect to any matters to which you have submitted
to jurisdiction as set forth above in the immediately preceding sentence. You irrevocably and
unconditionally waive any objection to the laying of venue of any action, suit or proceeding
arising out of this Annex 1 or the transactions contemplated hereby in the United States
District Court for the Eastern District of Pennsylvania or the state courts of the State of
Pennsylvania and hereby irrevocably and unconditionally waive and agree not to plead or claim in
any such court that any such action, suit or proceeding brought in such court has been brought in
an inconvenient forum.

(c) Additional Agreements. The provisions of this Annex 1 are in addition,
and do not supersede, the provisions of the Personal Services, Confidentiality and Inventions
Agreement between you and VWR.

(d) MUTUAL WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX
TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE
PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.
THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
ARBITRATION, EACH PARTY TO THIS LETTER AGREEMENT (INCLUDING VWR) HEREBY WAIVES ALL RIGHTS TO TRIAL
BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF
THE PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED
WITH, RELATED OR INCIDENTAL TO THIS LETTER AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY AND/OR
THE RELATIONSHIPS ESTABLISHED AMONG THE PARTIES HEREUNDER.

 

4

 

Annex 2 — General Release

I, Greg Cowan, in consideration of and subject to the performance by VWR International, Inc.,
a Delaware corporation (together with its subsidiaries, the “Company”), of its obligations
under the Employment Agreement, dated as of the date as of                      (the
“Agreement”), do hereby release and forever discharge as of the date hereof the Company and
its affiliates and all present and former directors, officers, agents, representatives, employees,
successors and assigns of the Company and its affiliates and the Company’s direct or indirect
owners (collectively, the “Released Parties”) to the extent provided below.

	1.	 	I understand that any payments or benefits paid or granted to me under the
“Severance/Restrictive Covenants” section of the Agreement represent, in part, consideration
for signing this General Release and are not salary, wages or benefits to which I was already
entitled. I understand and agree that I will not receive the payments and benefits specified
in the “Severance/Restrictive Covenants” section of the Agreement unless I execute this
General Release and do not revoke this General Release within the time period permitted
hereafter or breach this General Release. I also acknowledge and represent that I have
received all payments and benefits that I am entitled to receive (as of the date hereof) by
virtue of any employment by the Company.

	2.	 	Except as provided in paragraph 4 below and except for the provisions of my Employment
Agreement which expressly survive the termination of my employment with the Company, I
knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns)
release and forever discharge the Company and the other Released Parties from any and all
claims, suits, controversies, actions, causes of action, cross-claims, counter-claims,
demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other
damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law
and in equity, both past and present (through the date this General Release becomes effective
and enforceable) and whether known or unknown, suspected, or claimed against the Company or
any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators
or assigns, may have, which arise out of or are connected with my employment with, or my
separation or termination from, the Company (including, but not limited to, any allegation,
claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the
Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended
(including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended;
the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the
Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act
of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state
or local counterparts; or under any other federal, state or local civil or human rights law,
or under any other local, state, or federal law, regulation or ordinance; or under any public
policy, contract or tort, or under common law; or arising under any policies, practices or
procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction
of emotional distress, defamation; or any claim for costs, fees, or other expenses, including
attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to
herein as the “Claims”).

	3.	 	I represent that I have made no assignment or transfer of any right, claim, demand, cause of
action, or other matter covered by paragraph 2 above.

 

 

 

	4.	 	I agree that this General Release does not waive or release any rights or claims that I may
have under the Age Discrimination in Employment Act of 1967 which arise after the date I
execute this General Release. I acknowledge and agree that my separation from employment with
the Company in compliance with the terms of the Agreement shall not serve as the basis for any
claim or action (including, without limitation, any claim under the Age Discrimination in
Employment Act of 1967).

	5.	 	In signing this General Release, I acknowledge and intend that it shall be effective as a bar
to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that
this General Release shall be given full force and effect according to each and all of its
express terms and provisions, including those relating to unknown and unsuspected Claims
(notwithstanding any state statute that expressly limits the effectiveness of a general
release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating
to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver
is an essential and material term of this General Release and that without such waiver the
Company would not have agreed to the terms of the Agreement. I further agree that in the
event I should bring a Claim seeking damages against the Company, or in the event I should
seek to recover against the Company in any Claim brought by a governmental agency on my
behalf, this General Release shall serve as a complete defense to such Claims. I further agree
that I am not aware of any pending claim of the type described in paragraph 2 as of the
execution of this General Release.

	6.	 	I agree that neither this General Release, nor the furnishing of the consideration for this
General Release, shall be deemed or construed at any time to be an admission by the Company,
any Released Party or myself of any improper or unlawful conduct.

	7.	 	I agree that this General Release and the Agreement are confidential and agree not to
disclose any information regarding the terms of this General Release or this Agreement, except
to my immediate family and any tax, legal or other counsel I have consulted regarding the
meaning or effect hereof or as required by law, and I will instruct each of the foregoing not
to disclose the same to anyone. Notwithstanding anything herein to the contrary, each of the
parties (and each affiliate and person acting on behalf of any such party) agree that each
party (and each employee, representative, and other agent of such party) may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of this
transaction contemplated in the Agreement and all materials of any kind (including opinions or
other tax analyses) that are provided to such party or such person relating to such tax
treatment and tax structure, except to the extent necessary to comply with any applicable
federal or state securities laws. This authorization is not intended to permit disclosure of
any other information including (without limitation) (i) any portion of any materials to the
extent not related to the tax treatment or tax structure of this transaction, (ii) the
identities of participants or potential participants in the Agreement, (iii) any financial
information (except to the extent such information is related to the tax treatment or tax
structure of this transaction), or (iv) any other term or detail not relevant to the tax
treatment or the tax structure of this transaction.

	8.	 	Any non-disclosure provision in this General Release does not prohibit or restrict me (or my
attorney) from responding to any inquiry about this General Release or its underlying facts
and circumstances by the Securities and Exchange Commission (SEC), the National Association of
Securities Dealers, Inc. (NASD), any other self-regulatory organization or governmental
entity.

 

2

 

	9.	 	Notwithstanding anything in this General Release to the contrary, this General Release shall
not relinquish, diminish, or in any way affect any rights or claims arising out of any breach
by the Company or by any Released Party of the Agreement after the date hereof.

	10.	 	Whenever possible, each provision of this General Release shall be interpreted in, such
manner as to be effective and valid under applicable law, but if any provision of this General
Release is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision or any other jurisdiction, but this General Release shall be
reformed, construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

	 	(i)	 	I HAVE READ IT CAREFULLY;

	 
	 	(ii)	 	I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS,
INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF
1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY
ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED;

	 
	 	(iii)	 	I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

	 
	 	(iv)	 	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE
DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY
OWN VOLITION;

	 
	 	(v)	 	I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE
SUBSTANTIALLY IN ITS FINAL FORM ON                           ,            TO CONSIDER IT AND THE
CHANGES MADE SINCE THE                           ,            VERSION OF THIS RELEASE ARE NOT
MATERIAL AND WILL NOT RESTART THE REQUIRED 21-DAY PERIOD;

	 
	 	(vi)	 	THE CHANGES TO THE AGREEMENT SINCE                           ,            EITHER ARE NOT
MATERIAL OR WERE MADE AT MY REQUEST.

	 
	 	(vii)	 	I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO
REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE
REVOCATION PERIOD HAS EXPIRED;

	 
	 	(viii)	 	I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF
ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

 

3

 

	 	(ix)	 	I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED,
CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE COMPANY AND BY ME.

	 	 	 	 	 
	DATE:
	 	 	 	 
	 

	 	 
	 	 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]