Document:

Exhibit 10.1

 

CHARLES RIVER LABORATORIES

Severance Agreement

 

This will set forth our revised agreement regarding your severance.

 

1.             You
will receive one-year of severance pay in exchange for your agreement not to
compete with CRL during the one-year severance period. You will receive this
severance pay even if you find employment during this period,  so long as the employment is not with a
competitor.

 

2.             If
at the end of a year you have not found full-time employment, then CRL will, at
its choosing, either release you from the non-compete or continue your
severance for up to an additional year until you find non-competing employment.

 

3.             “Competitor”
for this purpose means lab animal breeders and ascites producers.

 

4.             This
severance arrangement will apply if you are terminated by CRL for any reason
other than for “cause”. “Cause” will be limited to the commission of a serious
crime, fraud, dishonesty, willful misconduct or total disregard for your
assigned duties.

 

5.             The
outstanding balance of your one-year severance will be payable in a lump-sum to
your spouse, child or other designated family member in the event you die
during the initial year.

 

6.             Your
CRL disability coverage will continue so long as the severance is still in
effect.

 

7.             CRL’s
contributions to your ESLIRP will continue so long as the severance is in
effect.

 

8.             You
will be eligible for EICP for the year in which your termination occurs, on at
least a pro rata allocation basis.

 

If we agree, please sign below, and this will modify the CRL Corporate Officer
Separation Plan as it applies to you.

 

 

	
  /s/ Real H. Renaud

  	
   

  	
  /s/ James C. Foster

  
	
  Real H. Renaud

  	
  James C. Foster

  
	
  Vice President, Worldwide

  	
  President and Chief Operating

  
	
    Production

  	
    Officer

  
	
   

  	
   

  
	
  Dated: January 7, 1992

  	
  Dated: January 20, 1992

  

 

 

FIRST
AMENDMENT TO SEVERENCE AGREEMENT

 

This First Amendment to Severance Agreement
(the “Amendment”), dated December 15, 2008 (the “Effective
Date”), by and between Charles River Laboratories, Inc., a
Delaware corporation (the “Company”) and Real
H. Renaud (the “Executive”) amends that certain
Severance Agreement dated January 7/20, 1992 by and between the Company
and the Executive (the “Agreement”).  Any
capitalized terms not defined in this Amendment shall have the meaning ascribed
thereto in the Agreement.

 

WHEREAS, in light of Section 409A of the
Code (“Section 409A”) and the regulations thereunder, the Company and the
Executive have determined that the following amendments to the Agreement would
be prudent; and

 

NOW THEREFORE, in consideration of the
premises and the mutual covenants herein contained, the Company and the
Executive hereby agree as follows:

 

1.             The following paragraphs shall be
inserted as new Section 9 of the Agreement:

 

9.             Section 409A.

 

(a)           Notwithstanding
anything to the contrary in this Agreement, if Executive is a “specified
employee” within the meaning of Section 409A and the regulations
thereunder, as determined by the Compensation Committee of the Board as of the
date of Executive’s “separation from service” as defined in Treasury Regulation
Section 1.409A-1(h) (or any successor regulation) and if any payments
or entitlements provided for in this Agreement constitute a “deferral of
compensation” within the meaning of Section 409A and cannot be paid or
provided in the manner provided herein without subjecting Executive to
additional tax, interest or penalties under Section 409A, then any such
payment and/or entitlement which is payable during the first six months
following Executive’s “separation from service” shall be paid or provided to
Executive (or the Executive’s estate, if applicable) in a lump sum (together
with interest on the deferred payment or payments at a per annum rate equal to
the GATT Rate (i.e. the 30-year Treasury bond interest rate) on the date of
such “separation from service”) on the earlier of (i) the first business
day immediately following the six-month anniversary of Executive’s “separation
from service” or (ii) Executive’s death.

 

(b)           Any payments or
benefits due hereunder upon a termination of Executive’s employment which are a
“deferral of compensation” within the meaning of Section 409A shall only
be payable or provided to Executive (or his or her estate) upon a “separation
from service” as defined in Section 409A.

 

(c)           With respect to any
benefits hereunder that constitute a “reimbursement plan” for purposes of Section 409A,
(i) the reimbursement payment be made by no later than the end of the
calendar year following the year in which the expense is incurred and (ii) the
amount of reimbursable expenses incurred (or in-kind benefits available) in one

 

 

taxable year of the Executive cannot affect the amount of reimbursable
expenses (or in-kind benefits) available in a different taxable year.

 

2.               Any provision of
the Agreement not specifically modified by this Amendment shall remain in full
force and effect.

 

3.               The headings and
captions contained herein are for convenience and shall not control or affect
the meaning or construction of any provision hereof.

 

4.               This Amendment may
be executed in counterparts, each of which shall be deemed to be an original
and which together shall constitute one and the same instrument.

 

 

	
   

  	
  CHARLES RIVER LABORATORIES,

       INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James C. Foster

  
	
   

  	
   

  	
  Name:

  	
  James C. Foster

  
	
   

  	
   

  	
  Title:

  	
  Chairman, President and

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  

Agreed and Accepted:

 

 

	
  /s/ Real H. Renaud

  	
   

  
	
   

  	
   

  
	
  Real H. RenaudExhibit 10.2

 

1999
CHARLES RIVER CORPORATE OFFICER SEPARATION PLAN

(Last Revised on December 2,
2008)

 

1.0           Background

 

1.1           Purpose:

The purpose of the
Charles River Corporate Officer Separation Plan is to establish an equitable
measure of compensation for a corporate officer of Charles River Laboratories, Inc.
(the “Company”) who has been terminated.

 

1.2           Eligibility:

Eligible employees under
this Plan are corporate officers at the vice president level and above of the
Company whose employment as a corporate officer is terminated for reasons other
than cause, voluntary resignation, disability, early or normal retirement, or
death and who have not been offered a comparable position within the Company.

 

2.0           Definitions

 

2.1           Termination
for Cause:

A termination of
employment status for fraud, violence, theft, gross misconduct, discrimination,
harassment or actions which create legal liabilities for the Company or actions
of malicious intent which directly compromise the individual’s
role/accountabilities.

 

2.2           Comparable
Position:

A comparable position is defined as a position having
the same salary grade as the corporate officer’s current position in the same
geographical area with comparable salary, employee benefits perquisites, and
status .

 

2.3           Separation
Date:

The last day of full time
active employment.

 

2.4           Termination
Date:

The termination date will
be the later of the separation date or the last day as a severed employee
receiving benefits, in the event the officer elects to receive cycle payments;
provided that the foregoing shall be subject to Section 5.1 hereof as it
relates to the rights under any of the Company’s stock option plans then in
effect.

 

 

3.0           Severance
Pay

 

3.1           Maximum
Severance Pay Allowance:

A corporate officer shall
be entitled to a severance pay allowance equal to twenty-four (24) months of
the corporate officer’s base pay plus an amount equal to the accrued vacation
pay payable to the corporate officer as of the separation date.

 

3.2           Method
of Payment:

The Company shall make
payments to the corporate officer based upon normal payroll procedures..

 

4.0           Incentive
Compensation

 

4.1           Executive
Incentive Compensation Plan:

Participants whose
separation date is after June 30 in any plan year, will receive a pro rata
bonus based on the period of active employment on the date that such bonuses
are paid to all other active eligible employees.

 

5.0           Stock
Incentive Plan

 

5.1           Pursuant
to Stock Incentive Plans:

a)     A corporate officer who is
terminated will have 90 days from the termination date in which to exercise
vested stock options which were granted to the corporate officer.  Only options which have vested on or before
the separation date may be exercised.

b)    On or after the separation
date an eligible corporate officer will not be eligible for any loans in
connection with the exercise of vested options.

c)     A corporate officer who is
terminated has ownership rights to restricted stock to the extent it was vested
at the separation date.

 

6.0           Outplacement Services

 

6.1           The Company will assist
the corporate officer in the search for new employment by paying professional
fees for the services incurred in the normal course of a job search of an
outplacement organization in a total amount not to exceed 15% of the officer’s
annualized pay (base pay and prior year bonus actually paid) at the time of
termination.  All such fees and expenses
must be incurred within one year from the Separation Date to be reimbursed.

 

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7.0           Financial Perquisites

 

7.1           The following
perquisites will be continued as set forth below for those officers who elect
cycled severance:

 

7.2           Company
Car:

The officer’s car may be
purchased by the executive on or before the termination date, at the officer’s
election, at a price to be determined by reference to the Company’s Automobile
Policy, as then in effect.  If not
purchased, the car must be returned to the Company on the termination
date.  The purchase price will be
deducted from the severance payments if the executive has failed to make
arrangements to return or purchase the vehicle on or before the termination
date.

 

7.3           Other
Perquisites:

The Company shall
reimburse the Officer for other standard perquisites through the termination
date, based on those that were made available to the officer as of the
Separation Date, consistent with past practices.

 

8.0           Benefits/Perquisites

 

Health, Life Insurance, Retirement Income, and Savings
Plus Plan:

 

Health, Life Insurance, Retirement Income, and Savings
Plus Plan Benefits shall continue during the period of severance with benefits,
and cease on the termination date, subject to the officer’s election under
COBRA.

 

Benefits under the Long-Term and Short-Term Disability
Plans shall cease on the separation date. 
There are no conversion privileges.

 

9.0           Non-Compete
Agreement

 

9.1           In addition, in order
to be eligible for benefits under the Plan, the corporate officer must execute
an agreement not to compete with or solicit employees from the Company for a
period of two (2) years in the following form:

 

In consideration of the benefits to be provided to you
and as part of your fiduciary obligations to the Company, you agree that for a
period of two (2) years from the Separation Date you will not, directly or
indirectly:

 

(a) Compete with any business of the Company engaged in or under
active development by the Company or any of its subsidiaries.  For the purpose of this Agreement, the phrase
“compete” shall include serving as an employee, an officer, 

 

3

 

a director, an owner, a partner or a 5% or more shareholder of any
business or otherwise engaging in or assisting another to engage in any
business.  Without limiting the
foregoing, the Company shall consider, on an as requested basis, modifications
to your restrictions on competition where management of the Company believes
the competitive impact on the Company to be minimal or otherwise manageable; or

 

(b) Directly or indirectly solicit or hire any
employee of the Company or any of its subsidiaries to work for or on behalf of
you or any business in which you serve as an employee, an officer, a director,
an owner, a partner or a 5% or more shareholder.

 

10.0         Section 409A.

 

10.1         Notwithstanding
anything to the contrary in this Plan if the corporate officer is a “specified
employee” within the meaning of Section 409A of the Internal Revenue Code
(“Section 409A”) and the regulations thereunder, as determined by the
Compensation Committee of the Board of Directors of the Company as of the date
of corporate officer’s “separation from service” as defined in Treasury
Regulation Section 1.409A-1(h) (or any successor regulation) and if
any payments or entitlements provided for in this Plan constitute a “deferral
of compensation” within the meaning of Section 409A and cannot be paid or
provided in the manner provided herein without subjecting the corporate officer
to additional tax, interest or penalties under Section 409A, then any such
payment and/or entitlement which is payable during the first six months
following the corporate officer’s “separation from service” shall be paid or
provided to Corporate officer (or the corporate officer’s estate, if
applicable) in a lump sum (together with interest on the deferred payment or
payments at a per annum rate equal to the GATT Rate (i.e. the 30-year Treasury
bond interest rate) on the date of such “separation from service”) on the
earlier of (i) the first business day immediately following the six-month
anniversary of the corporate officer’s “separation from service” or (ii) the
corporate officer’s death.

 

10.2         Any
payments or benefits due hereunder upon a termination of the corporate officer’s
employment which are a “deferral of compensation” within the meaning of Section 409A
shall only be payable or provided to the corporate officer (or his or her
estate) upon a “separation from service” as defined in Section 409A.

 

10.3         With
respect to any benefits hereunder that constitute a “reimbursement plan” for
purposes of Section 409A, (i) the reimbursement payment be made by no
later than the end of the calendar year following the year in which the expense
is incurred and (ii) the amount of reimbursable expenses incurred (or
in-kind benefits available) in one taxable year of the corporate officer cannot
affect the amount of reimbursable expenses (or in-kind benefits) available in a
different taxable year.

 

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11.0         Administration of the Plan

 

11.1         Preparation
of Severance Package:

The Company’s corporate
Human Resources Department is responsible for the preparation of the executive
severance package in accordance with this Plan.

 

11.2         Other
Policies and Plans:

This Plan
supersedes the Officer Separation Plan of May 16, 1991.

 

 

	
   

  	
  CHARLES RIVER
  LABORATORIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James C. Foster

  
	
   

  	
   

  	
        James
  C. Foster

  
	
   

  	
   

  	
        Chairman,
  President & CEO

  
	
   

  	
   

  
	
   

  	
  Effective Date:  December 2,
  2008

  

 

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