Document:

Unassociated Document

     

    January
      5, 2007 - revised January 8, 2007

    

    Marcia
      J.
      Avedon, Ph.D.

    xxxxxxxxxxxxxxxxxxxxxxxxxx

    xxxxxxxxxxxxxxxxxxxxxxxxxx

    

    Dear
      Marcia,

    

    I
      am
      pleased to present you with an offer for the position of Senior Vice President,
      Human Resources and Communications reporting to me. This position will be
      located in Montvale, NJ. You will be presented to the Board of Directors at
      their first meeting following your date of hire for election as a Senior Vice
      President, Officer of Ingersoll-Rand Company Limited (the “Company”) to take
      effect on the date of your election. The next scheduled meeting of the Board
      is
      February 7, 2007. We look forward to your acceptance of this offer and becoming
      a part of our team, with a start date of Tuesday, February 6, 2007.

    

    
      	
              1.

            	
              Your
                starting base salary will be at an annual rate of $400,000 (four
                hundred
                thousand U.S. dollars) paid monthly.

            

    

    

    
      	
              2.

            	
              This
                position is an “incentive eligible” position, which means you will be
                eligible to participate in the Annual Incentive Matrix (AIM) Program.
                Your
                annual opportunity is targeted at 70% of base salary. The actual
                award
                that an individual may receive can be higher or lower than the targeted
                amount depending upon individual performance and the performance
                of the
                Company. For performance year 2007 you will be eligible for a full
                year
                consideration, i.e., unreduced for partial year
                employment.

            

    

    

    
      	
              3.

            	
              You
                will be recommended for a sign-on award of 30,000 (thirty thousand)
                non-qualified stock options. This award is subject to approval by
                the
                Compensation Committee of the Company’s Board of Directors (the
                “Committee”) and to the terms and conditions of awards made under our
                Incentive Stock Plan. These options will be priced at the fair market
                value of Ingersoll Rand stock on the day the Committee considers
                and
                approves awards and will vest ratably over three years following
                the
                grant. Your award recommendation will be considered by the Committee
                at
                their first meeting following your first day of employment. The next
                scheduled meeting of the Committee is February 7, 2007.
                

            

    

    

    Starting
      with performance year 2007 (first awardable 2008) you will be eligible to
      receive stock option awards under the Incentive Stock Plan as administered
      by
      the Compensation Committee of the Board. Your annual opportunity is targeted
      at
      a value equal to 100% of your base salary. Annual stock option awards are
      contingent on and variable with your performance and the Company’s financial
      performance, specifically, earnings per share against plan. The methodology
      used
      to determine the number of shares awarded will be consistently applied to all
      program participants whose stock option targets are expressed as a percentage
      of
      salary.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	Marcia J. Avedon, Ph.D.	
               January
                8,
                2007

            

    

     

    
      	
              4.

            	
              You
                will be recommended to be a participant in the IR Performance Share
                Program (PSP) with a target award level of 7,500 performance shares
                for
                2007 (awarded February, 2008). Awards under the IR Performance Share
                Program are both contingent on and variable with achievement of specific
                objectives. The objectives are established each year by the Chairman
                and
                Compensation Committee, and include several financial performance
                metrics,
                which for 2007 are E.P.S., Available Cash Flow and R.O.I.C. Awards
                from
                this plan are normally distributed in February following the Compensation
                Committee’s approval. In subsequent years, you will be eligible for
                additional annual awards of similar value with qualifying criteria
                set at
                the time of each award. Participation in the PSP includes stock ownership
                requirements, which will be described in greater detail upon your
                acceptance in the program by the Compensation
                Committee.

            

    

    

    
      	
              5.

            	
              Additionally,
                you will receive a sign-on award of 7,500 employment shares with
                a 3-year
                cliff vesting (all shares will vest in February 2010).
                

            

    

    

    
      	
              6.

            	
              You
                will be eligible to participate in the IR Executive Deferred Compensation
                Plan (EDCP). The EDCP gives you the opportunity to defer your AIM
                award,
                PSP award and up to 50% of your base salary on a pretax basis. Information
                regarding the EDCP will be sent to you and a representative from
                our
                vendor, TBG Financial, will contact you to explain this program after
                you
                begin your employment.

            

    

    

    
      	
              7.

            	
              You
                will be eligible to participate in all employee benefit programs
                offered
                to all Ingersoll Rand salaried employees in accordance with the terms
                and
                conditions of those programs. The enclosed information summarizes
                these
                benefits. Please note that your medical, dental and life insurance
                coverage with Ingersoll Rand will commence on the first day of the
                month
                following employment.

            

    

    

    
      	
              8.

            	
              You
                will be eligible for four (4) weeks of paid vacation per year, which
                exceeds our normal Company policy. Vacation days are earned and accrued
                on
                a monthly basis each calendar year.

            

    

    

    
      	
              9.

            	
              You
                will be provided a company automobile in accordance with our Company
                car
                policy, which in your case currently provides an executive automobile
                with
                a purchase value of up to $60,000. A portion of the benefit will
                be
                imputed to your statement of gross income for tax
                purposes.

            

    

    

    
      	
              10.

            	
              You
                will be eligible for the Company’s Executive Health Program, a copy of
                which is enclosed.

            

    

    

    
      	
              11.

            	
              You
                will be recommended for participation in the Elected Officer Supplemental
                Program (EOSP). The EOSP is a non-qualified defined benefit pension
                plan
                that substantially augments IR’s qualified pension plan and, as its name
                denotes, is reserved for elected officers of the company. A brief
                summary
                is enclosed. Under this employment agreement you will earn double
                service
                credit (not vesting credit) for each of your first five years of
                employment with Ingersoll Rand. The EOSP vests at age 55 with 5 years
                of
                service.

            

    

    

    
      	
              12.

            	
              As
                an elected officer, you are eligible for financial and retirement
                counseling services through AYCO, a division of Goldman-Sachs. This
                service includes investment strategy and tax filing assistance. A
                portion
                of the cost for these services is imputed to your annual income.
                A
                representative from AYCO will contact you after your employment
                date.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
       

      
        	Marcia J. Avedon, Ph.D.	
                 January
                  8,
                  2007

              

      

    

     

    
      	
              13.

            	
              Also,
                as an elected officer, you will be given a Change in Control Agreement
                for
                Senior Vice Presidents at the 2.5x level (i.e., 2.5x annual salary,
                AIM
                and PSP), which provides economic security in the form of cash payments
                to
                the participant and guaranteed coverage under certain benefit plans
                in the
                event of job loss caused by the sale of all (or a substantial part
                of) the
                Company.

            

    

    

    
      	
              14.

            	
              During
                the term of your employment, you will be eligible for the Company’s
                Relocation Program. The timing of the relocation will be at your
                discretion. 

            

    

    

    
      	
              15.

            	
              In
                the unlikely event of your involuntary termination from Ingersoll
                Rand
                within five (5) years from your date of hire for other than gross
                cause,
                as consideration for your release of whatever claims might be made,
                you
                will receive a) a severance payment of eighteen months base salary
                if
                termination is within five years of your date of hire, and twelve
                months
                base salary if termination is after such five years, plus b) a payment
                equal to your target amount in the Annual Incentive Matrix (AIM)
                Program
                and c) a pro-rata payment (prorated based on days in the year through
                the
                termination date over total days within year) of the Performance
                Share
                (PSP) Program award that is earned as of your termination date, to
                be paid
                according to plan provisions, up to the target level. In addition,
                under
                such circumstances, you will have 90 days following your termination
                date
                within which to exercise your vested
                options.

            

    

    

    Marcia,
      we all believe that you will make a significant contribution in this new role
      and look forward to your contribution to Ingersoll Rand. This offer of
      employment is contingent upon the satisfaction of several items, which are
      identified on the attached “Conditions of Offer” form. To accept this offer,
      please sign the “Conditions of Offer” form and return it in the enclosed UPS
      envelope along with the completed employment application, Background Request
      form and Self-Identity form. 

    

    If
      you
      have any questions regarding your compensation and benefits, please contact
      Rob
      Butler (201-573-3137), Connie Roseler (201-573-3052) or myself.

    

    Sincerely,

    

    Herbert
      L. Henkel

    Chairman,
      President and

    Chief
      Executive Officer

    

    
      	cc:	
              Rob
                Butler 

              
                Connie
                  Roseler

                Gillian
                  Scholes

              

            

    

    
       

      
        	Enclosures:	
                Benefits
                  Summary

                
                  Executive
                    Health Program Write-Up

                  Elected
                    Officer Supplemental Program
                    Write-Up

                

              

      

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      
         

        
          	Marcia J. Avedon, Ph.D.	
                   January
                    8,
                    2007

                

        

         

      

    

    Conditions
      of Offer

     

    This
      offer is contingent upon the following:

    

    
      	 	
              1.

            	
              Verification
                of information signed and submitted in connection with the Ingersoll
                Rand
                employment application and authorization for Release of Personal
                Data
                Records Information.

            

    

    

    
      	 	
              2.

            	
              Passing
                the required drug and alcohol screening. All test results will be
                handled
                in strict confidence. Attached is the substance abuse screen requirements
                and release along with the control form and list of
                locations.

            

    

    

    
      	 	
              3.

            	
              Providing
                proof of identity and employment eligibility pursuant to the Immigration
                Reform and Control Act of 1986 within three (3) working days after
                the
                actual commencement of work. A copy is enclosed with instructions
                for
                completing the form along with a list of acceptable verification
                documents.

            

    

    

    
      	 	
              4.

            	
              Understanding
                and agreement that your employment is to be “at will”. This means that you
                or the Company, for any reason or no reason, may terminate employment
                and
                that nothing in this offer is intended to create a fixed or specified
                term
                of employment.

            

    

    

    
      	 	
              5.

            	
              Understanding,
                agreeing and signing and returning the Code of Conduct and Proprietary
                Information forms.

            

    

     

    CANDIDATE
      ACCEPTANCE

    

    I
      accept
      your offer of employment with Ingersoll Rand, Corporate Center, as Senior Vice
      President, Human Resources and Communications and agree to the conditions hereon
      and in the offer letter.

    

    
      	/s/ Marcia J. Avedon,
              Ph.D. 	January
              11, 2007
	
              
Marcia
              J. Avedon, Ph.D. 	
              
                

              

              Date

            

    

     

    
      
        
        

      

      
        4CALL
      OPTION AGREEMENT

     

    This
      CALL
      OPTION AGREEMENT (this “Agreement”)
      is
      made as of this 24th
      day of
      October, 2006 by and among Bradley Thomas, Mark Rupp, Timothy Faust, Lee
      Melchi, and MTG, LLC in their individual capacity, jointly and severally
      (“Contributors”),
      who
      constitute the owners of 100% of the issued and outstanding member interests
      (the “Units”) of My
      Health And Safety Supply Company,
      an
      Indiana limited liability company, and MH&SC,
      Inc.,
      a
      Delaware corporation (the “Exchange
      Issuer,”
and
      Exchange Issuer and Contributors together, the “Parties”).

     

    W
      I T N E S S E T H :

     

    A.    The
      Parties have agreed to the Plan of Exchange attached hereto as Exhibit A (the
      “Plan”). 

    

    B.    As
      further inducement for Exchange Issuer to enter into and as a condition of
      the
      Closing of this Agreement and the Plan, Contributors have agreed as a condition
      to the closing of the Plan to grant to Exchange Issuer the Call Option (as
      defined below).

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual promises set forth
      in
      this Agreement;

    

    THE
      PARTIES AGREE AS FOLLOWS:

     

    1.    Call
      Option.

     

    a.    As
      a
      condition of closing of the Plan, Contributors hereby grant to Exchange Issuer
      an option (the “Call
      Option”)
      to
      require Contributors to sell to Exchange Issuer up to 1,000,000 shares of common
      capital stock of Exchange Issuer (the “Option
      Shares”)
      at a
      price per share equal to $.13 or an aggregate of $130,000, less any cash
      contributions of Exchange Issuer to LLC between the date of closing of this
      Agreement and the date of purchase under the Call Option. As a result of the
      Exchange Agreement, the LLC shall be a wholly-owned subsidiary of Exchange
      Issuer following closing of this Agreement and during the term of this
      Agreement. 

     

    b.    The
      Call
      Option may only be exercised commencing 18 months after the Closing of this
      Agreement (the “Exercise
      Period”).

     

    2.    Exercise
      of the Option.
      

     

    a.    The
      Call
      Option may be exercised by written notice given by Exchange Issuer to one or
      more of the Contributors exercising the Call Option (Contributors being required
      to retain good and valid title to the shares subject to the exercise, and to
      keep said shares are unencumbered, during the term of this Agreement up to
      the
      time of delivery of the shares under the Option or termination of this
      Agreement).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    b.    Exchange
      Issuer may exercise the Call Option on a serial basis, until such time as (i)
      the Call Option has been exercised with regard to all 1,000,000 shares of common
      capital stock of the Exchange Issuer subject to the Call Option or (ii) the
      Call
      Option has terminated pursuant to the terms of Section 2(d) below.

     

    c.    Exchange
      Issuer shall make payment for all Option Shares with regard to which the Call
      Option is exercised within ten (10) days following Contributors’ deemed receipt
      of the written notice exercising the Call Option. Payment shall be made to
      the
      Contributor owning the shares subject to the exercise in cash by wire transfer
      of immediately available funds or certified check.

     

    d.    If
      the
      Call Option is not exercised during the Exercise Period, then the Call Option
      will terminate, and be null, void and of no further effect immediately following
      the end of the Exercise Period.

     

    3.    Contributors’
      Representations and Warranties.
      Contributors hereby represent and warrant to Exchange Issuer that:

     

    a.    Contributors
      have full legal right, power and authority, without the consent of any other
      person, to execute and deliver this Agreement and to carry out the transactions
      contemplated hereby.

     

    b.    This
      Agreement has been duly executed and delivered by Contributors and is the
      lawful, valid and legally binding obligation of Contributors, enforceable in
      accordance with its terms.

     

    c.    This
      Agreement does not violate any other agreement to which Contributors are a
      party
      or any agreement or law of which Contributors are aware.

     

    4.    Notices.
      Any
      notice required or permitted by any provision of this Agreement shall be given
      in writing and shall be delivered personally or by courier, or by registered
      or
      certified mail, postage prepaid, addressed to the applicable address as set
      forth in the signature page hereto or such other address as the parties may
      designate in writing from time to time. Notices that are mailed shall be deemed
      received five (5) days after deposit in the United States mail. Notices sent
      by
      courier or overnight delivery shall be deemed received two (2) days after they
      have been so sent.

     

    5.    Further
      Instruments and Actions.
      The
      Parties agree to execute such further instruments and to take such further
      action as may reasonably be necessary to carry out the intent of this
      Agreement.

     

    6.    Entire
      Agreement.
      This
      Agreement contains the entire understanding of the parties hereto with respect
      to the subject matter hereof, supersedes all other agreements between or among
      any of the Parties with respect to the subject matter hereof.

     

    7.    Governing
      Law.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of Delaware without reference to conflicts of law
      provisions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.    Jurisdiction.
      Each
      Party to this Agreement hereby irrevocably agrees that any legal action or
      proceeding arising out of or relating to this Agreement or any agreements or
      transactions contemplated hereby may be brought in the courts of the State
      of
      Delaware and hereby expressly submits to the personal jurisdiction and venue
      of
      such courts for the purposes thereof and expressly waives any claim of improper
      venue and any claim that such courts are an inconvenient forum. Each Party
      hereby irrevocably consents to the service of process of any of the
      aforementioned courts in any such suit, action or proceeding by the mailing
      of
      copies thereof by registered or certified mail, postage prepaid, to the address
      specified in Section
      5,
      such
      service to become effective 10 days after such mailing.

     

    9.    Amendments
      and Waivers.
      Any
      term of this Agreement may be amended and the observance of any term of this
      Agreement may be waived (either generally or in a particular instance and either
      retroactively or prospectively), only with the written consent of all
      Parties.

     

    10.   Severability.
      In case
      any provision of the Agreement shall be invalid, illegal or unenforceable,
      the
      validity, legality and enforceability of the remaining provisions shall not
      in
      any way be affected or impaired thereby.

     

    11.   Attorney’s
      Fees.
      In the
      event that any dispute among the Parties to this Agreement should result in
      litigation, the prevailing Party in such dispute shall be entitled to recover
      from the losing Party all fees, costs and expenses of enforcing any right of
      such prevailing Party under or with respect to this Agreement, including without
      limitation, such reasonable fees and expenses of attorneys and accountants,
      which shall include, without limitation, all fees, costs and expenses of
      appeals.

     

    12.   Headings.
      The
      headings of this Agreement are inserted for convenience and identification
      only,
      and are in no way intended to describe, interpret, define or limit the scope,
      extent or intent hereof.

     

    13.    Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the respective
      Parties hereto, their successors and permitted assigns, heirs, and personal
      representatives.

     

    14.    Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first written above.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

     

    
      	 	
              EXCHANGE
                ISSUER:

              MH&SC,
                Inc.

               

               

              By: /s/
                Cory
                Heitz                                         
                 

              Cory
                Heitz, Chief Executive Officer

            
	 	 
	 	
              CONTRIBUTORS:

               

              /s/
                Bradley
                Thomas                                       
                

              Bradley
                Thomas

               

              /s/
                Mark
                Rupp                                                
                

              Mark
                Rupp

               

              /s/
                Timothy
                Faust                                          
                

              Timothy Faust

               

              /s/
                Lee
                Melchi                                                
                

              Lee
                Melchi

               

              /s/
                Gary
                Nead                                                 
                

              MTG,
                LLC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]