Document:

Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

P R E A M B L E

This Employment Agreement defines the essential terms and conditions of our employment
relationship with you. The subject covered in the Agreement are vitally important to you and to
the Company. Thus, you should read the document carefully and ask any questions before
signing the Agreement.

This EMPLOYMENT AGREEMENT between John J. Greisch (“Executive”) and Hill-Rom Holdings, Inc.
(“Company”) is dated this 6th day of January, 2010 and effective on the 8th day
of January, 2010.

W I T N E S S E T H:

WHEREAS, the Company and its affiliated entities are engaged in the healthcare industry
throughout the United States and abroad including, but not limited to, the design, manufacture,
sale, service and rental of hospital beds and stretchers, hospital furniture, medical-related
architectural products, specialty sleep surfaces (including therapeutic surfaces), air clearing
devices, biomedical and asset management services, as well as other medical-related accessories,
devices, products and services;

 

 

 

WHEREAS, the Company is willing to employ Executive in an executive or managerial position and
Executive desires to be employed by the Company in such capacity based upon the terms and
conditions set forth in this Agreement;

WHEREAS, in the course of the employment contemplated under this Agreement, it will be
necessary for Executive to acquire and maintain knowledge of certain trade secrets and other
confidential and proprietary information regarding the Company as well as any of its parent,
subsidiary and/or affiliated entities (hereinafter jointly referred to as the “Companies”); and

WHEREAS, the Company and Executive (collectively referred to as the “Parties”) acknowledge and
agree that the execution of this Agreement is necessary to memorialize the terms and conditions of
their employment relationship as well as safeguard against the unauthorized disclosure or use of
the Company’s confidential information and to otherwise preserve the goodwill and ongoing business
value of the Company;

NOW THEREFORE, in consideration of Executive’s employment, the Company’s willingness to
disclose certain confidential and proprietary information to Executive and the mutual covenants
contained herein as well as other good and valuable consideration, the receipt of which is hereby
acknowledged, the Parties agree as follows:

	1.	 	Employment. As of January 8, 2010, Executive’s first date of employment
with the Company as determined by, and reflected in a resolution approved by, the Board of
Directors of the Company (“Start Date”), the Executive agrees to serve as President and Chief
Executive Officer of the Company, reporting to the Board of Directors of the Company. Executive
agrees to perform all duties and responsibilities traditionally assigned to, or falling within
the normal responsibilities of, an individual employed as President and Chief Executive Officer
of the Company. Executive also agrees to perform any and all additional duties or
responsibilities consistent with such position as may be assigned by the Board of Directors of
the Company in its sole discretion.

 

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	2.	 	Best Efforts and Duty of Loyalty. During the term of employment with the Company,
Executive covenants and agrees to exercise reasonable efforts to perform all assigned duties
in a diligent and professional manner and in the best interest of the Company. Executive
agrees to devote his full working time, attention, talents, skills and best efforts to further
the Company’s business interests. Executive agrees not to engage in any outside business
activity, whether or not pursued for gain, profit or other pecuniary advantage, without the
express written consent of the Company. Executive shall act at all times in accordance with
the Company’s Code of Ethical Business Conduct, and all other applicable policies which may
exist or be adopted by the Company from time to time. The Executive may serve on other
boards of directors as shall not interfere with the proper performance of his duties and
obligations hereunder consistent with the Company’s Corporate Governance Standards for Board
of Directors and applicable laws, with the prior consent of the Company. The Company’s Board
of Directors (“Board”), has appointed the Executive to the Board on the date of this Agreement
subject to the requirement that he stand for re-election at the next annual meeting of
shareholders of the Company at which he otherwise would have been required under the Company’s
Articles of Incorporation or Bylaws to stand for re-election.
Executive shall not be entitled to receive compensation for his service as a member of the Board
of Directors of the Company.

 

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	3.	 	At-Will Employment. Subject to the terms and conditions set forth below, Executive
specifically acknowledges and accepts such employment on an “at-will” basis and agrees that
both Executive and the Company retain the right to terminate this relationship at any time,
with or without cause, for any reason not prohibited by applicable law upon notice as required
by this Agreement. Executive acknowledges that nothing in this Agreement is intended to
create, nor should be interpreted to create, an employment contract for any specified length
of time between the Company and Executive.

	4.	 	Compensation. For all services rendered by Executive on behalf of, or at the request
of, the Company, in his capacity as President and Chief Executive Officer of the Company,
Executive shall be compensated as follows from and after the Start Date, subject to
withholding for payment of any and all applicable federal, state and local payroll and
withholding taxes.

	 	(a)	 	Base Salary. For the services performed by him under this Agreement, the
Company shall pay Executive a base salary of Eight Hundred Thousand Dollars ($800,000) per
year, pro rated for the period which Executive serves (“Base Salary”). The Base Salary
shall be paid in the same increments as the Company’s normal payroll, but no less
frequently than monthly and prorated for any period less than a full month. Executive’s
Base Salary shall be reviewed at least annually, with the initial review taking place during
the fourth quarter of 2010.

 

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	 	(b)	 	STIC Bonus. Incentive compensation, payable solely at the discretion of the
Board of Directors of the Company, pursuant to the Company’s existing Incentive
Compensation Program or any other program as the Company may establish from time to time
in its sole discretion. For each fiscal year, the annual performance bonus target will be
not less than 100% of base salary earned during such fiscal year. Bonus will be based upon
the performance measure and objectives established by the Board from time to time, in
consultation with the Executive, but ultimately subject to the Compensation and Management
Development Committee’s (“CMDC”) discretion. Minimum bonus will be 0% of target and
maximum bonus will be 200% of target. Solely for fiscal year ending September 30, 2010,
guaranteed minimum payout will be 60% of base salary earned during the performance year, or
whatever is earned under the plan program, whichever is greater, subject to Executive’s
employment not having been terminated by the Company or by the Executive, for any reason,
prior to the end of the Company’s 2010 fiscal year.

	 	(c)	 	Sign-On Restricted Stock Units. On the Start Date, Executive will receive an
award with a value on the date of grant of $800,000 of restricted stock units (otherwise
known as deferred stock awards) (“RSUs”) under the terms and conditions of a Stock Award
Agreement and the related Company Stock Incentive Plan. Such RSUs shall vest in twenty
percent, thirty percent, and fifty percent increments on the day after the dates of each of
the second, third, and fourth year anniversaries of the Start Date, respectively.

 

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	 	(d)	 	Stock Options. On the Start Date, Executive will receive a grant of stock
options, with a value on the date of grant of $2,000,000 on such date using the
Black-Scholes valuation method, under the terms and conditions of a Stock Option Agreement
and the related Company Stock Incentive Plan. Each option will terminate in ten years,
have an exercise price per share equal to the average of the high and low prices of the
Common Stock on the Start Date in accordance with Company practice and vest in one-quarter
increments over a four-year period from the Start Date.

	 	(e)	 	Long-Term Incentive Plan. The Executive will be eligible to participate in the
long-term incentive plan in place at the time and as authorized by the CMDC, at the time of
the normal equity grant, with the first year’s value of 350% of base salary. The Award is
expected to be comprised of stock options and performance shares, in combination or
exclusively, realizing the proportional mix may change over time in consultation with the
Executive and the Board. It is expected that the first year grant will consist of stock
options and performance shares with each comprising 50% of the overall value with the
number of options based upon the Black-Scholes value of such options. These guidelines may
change from time to time as determined by the CMDC in its sole discretion.

	 	(f)	 	Retirement Plans. Commencing on the Start Date, Executive will be entitled to
participate in Company retirement plans (e.g., 401(k) Savings Plan and Supplemental
Executive Retirement Plan) consistent with plans, programs or policies available to other
senior executive officers of the Company and subject to satisfaction of any applicable
eligibility requirements.

 

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	 	(g)	 	Other Benefits. Commencing on the Start Date, Executive will be entitled to
participate in and receive such additional benefits and perquisites, including health and
welfare benefits, as are available to other senior executives of the Company and as the
Board of Directors of Company may deem appropriate and as pre-approved by the Compensation
and Management Development Committee of the Board.

	 	(h)	 	Relocation. Executive will be paid a flat fee of $200,000 to cover all
relocation costs once a residence is purchased by him within 75 miles of Batesville, IN.
Up to $50,000 of this amount may be used during the first 6 months of his employment to
obtain temporary housing.

	5.	 	Changes to Compensation. Notwithstanding anything contained herein to the contrary,
Executive acknowledges that the Company specifically reserves the right to make changes to
Executive’s compensation in its sole discretion including, but not limited to, modifying or
eliminating a compensation component. The Parties agree that such changes shall be deemed
effective immediately and a modification of this Agreement unless, within thirty (30) days
after receiving notice of such change, Executive exercises his right to terminate this
Agreement without cause or for “Good Reason” in the event Executive is not treated in a manner
that is commensurate with the treatment of other senior executives of the Company, if
applicable, as provided below in Paragraphs Nos. 9 and 11.

 

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	6.	 	Direct Deposit. As a condition of employment, and within thirty (30) days of the
Start Date of this Agreement, Executive agrees to make all necessary arrangements to have all
sums
paid pursuant to this Agreement direct deposited into one or more bank accounts as designated by
Executive.

	7.	 	Predecessor Employers. Except as otherwise disclosed in writing to the Compensation
Committee of the Board prior to the date hereof Executive warrants that he is not a party to
any contract, restrictive covenant, or other agreement purporting to limit or otherwise
adversely affecting his ability to secure employment with any third party. Alternatively,
should any such agreement exist, Executive warrants that the contemplated services to be
performed hereunder will not violate the terms and conditions of any such agreement.

	8.	 	Restricted Duties. Executive agrees not to disclose, or use for the benefit of the
Company, any confidential or proprietary information belonging to any predecessor employer(s)
that otherwise has not been made public and further acknowledges that the Company has
specifically instructed him not to disclose or use such confidential or proprietary
information. Based on his understanding of the anticipated duties and responsibilities
hereunder, Executive acknowledges that such duties and responsibilities will not compel the
disclosure or use of any such confidential and proprietary information.

	9.	 	Termination Without Cause. The Parties agree that either party may terminate this
employment relationship at any time, without cause, upon sixty (60) days’ advance written
notice or, if terminated by the Company, pay in lieu of notice (hereinafter referred to as
“notice pay”). In such event, Executive shall only be entitled to such compensation, benefits
and perquisites that have been paid or fully accrued as of the effective date of his
separation
and as otherwise explicitly set forth in this Agreement. However, in no event shall Employee be
entitled to notice pay if Employee is eligible for and accepts severance payments pursuant to
the provisions of Paragraphs 16 and 17, below.

 

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	10.	 	Termination With Cause. Executive’s employment may be terminated by the Company at
any time “for cause” without notice or prior warning. For purposes of this Agreement, “cause”
shall mean the Company’s good faith determination that Executive has:

	 	(a)	 	Acted with gross neglect or willful misconduct in the discharge of his duties and
responsibilities, or refused to follow or comply with the lawful direction of the Board of
Directors of the Company or the terms and conditions of this Agreement providing such
refusal is not based primarily on Employee’s good faith compliance with applicable legal or
ethical standards.

	 	(b)	 	Acquiesced or participated in any conduct that is dishonest, fraudulent, illegal,
unethical, involves moral turpitude or is otherwise illegal and involves conduct that has
the potential, in the Board of Directors’ reasonable opinion, to cause the Company, its
officers or its directors significant embarrassment or ridicule;

	 	(c)	 	Violated a material requirement of any Company policy or procedure, specifically
including a violation of the Company’s Code of Ethics or Associate Policy Manual;

 

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	 	(d)	 	Disclosed without proper authorization any trade secrets or other Confidential
Information (as defined herein);

	 	(e)	 	Engaged in any act that, in the reasonable opinion of the Board of Directors of the
Company would hold the Company, its officers or directors up to probable civil or criminal
liability, provided that, if Executive acts in good faith for compliance with applicable
legal or ethical standards, such actions shall not be grounds for termination for cause;

	 	(f)	 	Breached the warranties of Executive set forth in Paragraph 7 herein; or

	 	(g)	 	Engaged in such other conduct recognized at law as constituting cause.

Upon the occurrence or discovery of any event specified above, the Company shall have the right
to terminate Executive’s employment, effective immediately, by providing notice thereof to
Executive without further obligation to him other than accrued wages or other accrued wages,
deferred compensation or other accrued benefits of employment (collectively refereed to herein
as “Accrued Obligations”), which shall be paid in accordance with the Company’s past practice
and applicable law. To the extent any violation of this Paragraph is capable of being promptly
cured by Executive (or cured within a reasonable period to the Company’s satisfaction), the
Company agrees to provide Executive with a reasonable opportunity to so cure such defect.
Absent written mutual agreement otherwise, the Parties agree in advance that it is not possible
for Executive to cure any violations of sub-paragraphs (b), (d) or (f) and, therefore, no
opportunity for cure need be provided in those circumstances. Notwithstanding the foregoing, the Company may not terminate the Executive’s employment for
cause unless (A) a determination that cause exists is made and approved by a majority of the
Company’s Board, (B) if the circumstance giving rise to the issue are capable of being cured the
Executive is given at least ten (10) days’ written notice of the Board meeting called to make
such determination, and (C) the Executive is given the opportunity to address such meeting.

 

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	11.	 	Termination by Executive for Good Reason. Executive may terminate his employment and
declare this Agreement to have been terminated “without cause” by the Company (and, therefore,
for “Good Reason”) upon the occurrence, without Executive’s consent, of any of the following
circumstances:

	 	(a)	 	The assignment to Executives of duties that are materially inconsistent with
Executive’s position as President and Chief Executive Officer;

	 	(b)	 	The failure to elect or reelect Executive as President and Chief Executive Officer of
the Company or as a member of the Board of Directors (unless such failure is related in any
way to the Company’s decision to terminate Executive for cause or Executive’s failure to
run for reelection to the Board);

	 	(c)	 	A reduction by the Company in the amount of Executive’s base salary or the
discontinuation or reduction by the Company of Executive’s participation at previously
existing levels of eligibility in any incentive compensation, additional compensation or
equity programs, benefits, policies or perquisites; provided, however, that the Company may
make such changes and/or reductions without implicating the provisions of this subsection
(c) so long as Executive is treated in a manner that is commensurate with the treatment of
other senior executives of the Company;

 

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	 	(d)	 	A failure by the Company to perform its obligations under this Employment Agreement,

which, in each of subsections (a) through (d) above, is not remedied by the Company within 30
days of receipt of written notice of such event or breach delivered by Executive to the Company.

	12.	 	Termination Due to Death or Disability. In the event Executive dies or suffers a
disability (as defined herein) during the term of employment, this Agreement shall
automatically be terminated on the date of such death or disability without further obligation
on the part of the Company other than the Accrued Obligations (as defined in Section 10)
except that Executive will be immediately vested in the Supplemental Executive Retirement
Plan, which shall be paid in accordance with the award agreements, benefits plans, past
practice and applicable law. For purposes of this Agreement, Executive shall be considered to
have suffered a “disability”: (i) upon a good faith determination by Company that, as a result
of any mental or physical impairment, Executive is and will likely remain unable to perform
the essential functions of his duties or responsibilities hereunder on a full-time basis for
one hundred eighty (180) days, with or without reasonable accommodation, or (ii) Executive
becomes eligible for or receives any benefits pursuant to the Company’s long-term disability
policy. Notwithstanding anything expressed or implied above to the contrary, the Company agrees
to fully comply with its obligations under the Family and Medical Leave Act of 1993 and the
Americans with Disabilities Act as well as any other applicable federal, state, or local law,
regulation, or ordinance governing the provision of leave to individuals with serious health
conditions or the protection of individuals with disabilities as well as the Company’s
obligation to provide reasonable accommodation thereunder.

 

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	13.	 	Reaffirmation. Upon termination of Executive’s employment for any reason, Executive
agrees, if requested to reaffirm in writing his post-employment obligation as set forth in
this Agreement.

	14.	 	Section 409A Notification. Employee acknowledges that he has been advised of the
American Jobs Creation Act of 2004, which added Section 409A to the Internal Revenue Code
(“Section 409A”), and significantly changed the taxation of nonqualified deferred compensation
plans and arrangements. Under proposed and final regulations as of the date of this
Agreement, Employee has been advised that his severance pay and other termination benefits may
be treated by the Internal Revenue Service as providing “nonqualified deferred compensation,”
and therefore subject to Section 409A. In that event, several provisions in Section 409A may
affect Employee’s receipt of severance compensation, including the timing thereof. These
include, but are not limited to, a provision which requires that distributions to “specified
employees” of public companies on account of separation from service may not be made earlier
than six (6) months after the effective date of such separation. If applicable, failure to
comply with Section 409A can lead to immediate taxation of such deferrals, with interest
calculated at a penalty rate and a 20% penalty. As a result of the requirements imposed by
the American Jobs

 

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Creation Act of 2004, Employee agrees if he is a “specified employee” at the time of his termination of employment and if
payments in connection with such termination of employment are subject to Section 409A and not
otherwise exempt, such payments (and other benefits to the extent applicable) due Employee at
the time of termination of employment shall not be paid until a date at least six (6) months
after the effective date of Employee’s termination of employment (“Employee’s Effective
Termination Date”). Notwithstanding any provision of this Agreement to the contrary, to the
extent that any payment under the terms of this Agreement would constitute an impermissible
acceleration of payments under Section 409A or any regulations or Treasury guidance promulgated
thereunder, such payments shall be made no earlier than at such times allowed under Section
409A. If any provision of this Agreement (or of any award of compensation) would cause Employee
to incur any additional tax or interest under Section 409A or any regulations or Treasury
guidance promulgated thereunder, the Company or its successor may reform such provision;
provided that it will (i) maintain, to the maximum extent practicable, the original intent of
the applicable provision without violating the provisions of Section 409A and (ii) notify and
consult with Employee regarding such amendments or modifications prior to the effective date of
any such change.

	15.	 	Section 409A Acknowledgement. Executive acknowledges that, notwithstanding anything
contained herein to the contrary, both Parties shall be independently responsible for
assessing their own risks and liabilities under Section 409A that may be associated with any
payment made under the terms of this Agreement or any other arrangement which may be deemed to
trigger Section 409A. Further, the Parties agree that each shall independently bear
responsibility for any and all taxes, penalties or other tax obligations as may be imposed
upon them in their individual capacity as a matter or law.

 

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	16.	 	Severance Payments. In the event Executive’s employment is terminated by the Company
without cause (including by Employee for Good Reason), and subject to the normal terms and
conditions imposed by the Company as set forth herein and in the attached Separation and
Release Agreement (Exhibit A), Executive shall be eligible to receive severance pay based upon
his base salary at the time of termination for a period of twenty four (24) months and the
Sign-On RSUs set forth in paragraph 4(c) herein, to the extent not previously vested, will be
deemed to have been 50% vested in the event Executive’s employment is terminated after the
second anniversary of the Start Date and 75% vested if the Executive is terminated after the
third anniversary of his Start Date, and such shares shall be delivered to Executive as soon
thereafter as will not cause Executive adverse tax consequences under Code Section 409A.
Executive will be immediately vested in the Supplemental Executive Retirement Plan.
Additionally, the Company shall arrange for the Executive to continue to participate (through
COBRA or otherwise), on substantially the same terms and conditions as in effect for the
Executive (including any required active employee contribution) immediately prior to such
termination, in the health and similar welfare benefits provided to the Executive until the
earlier of (i) the end of the 12 month period beginning on the effective date of the
termination of Executive’s employment hereunder, or (ii) such time as the Executive is
eligible to be covered by comparable benefits of a subsequent employer. The Executive agrees
to notify the Company promptly if and when he begins employment with another employer and if
and when he becomes eligible to participate in any health or welfare plans of another
employer. The foregoing severance rights and obligations shall not exist if Executive
voluntarily leaves the Company’s employ without “Good Reason” (as defined above) or is
terminated for “cause” (as defined above).

 

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	17.	 	Severance Payment Terms and Conditions. No severance pay shall be paid if Executive
voluntarily leaves the Company’s employ without Good Reason, as defined above, or is
terminated for cause. Any severance pay made payable under this Agreement shall be paid in
lieu of, and not in addition to, any other contractual, notice or statutory pay or other
accrued compensation obligation (excluding accrued wages and deferred compensation).
Additionally, such severance pay is contingent upon Executive fully complying with the
restrictive covenants contained herein and executing a Separation and Release Agreement in a
form not substantially different from that attached as Exhibit A. Further, the Company’s
obligation to provide severance hereunder shall be deemed null and void should Executive fail
or refuse to execute and deliver to the Company the Company’s then-standard Separation and
Release Agreement (without modification) within any time period as may be prescribed by law
or, in absence thereof, twenty-one (21) days after the Employee’s Effective Termination Date.
Conditioned upon the execution and delivery of the Separation and Release Agreement as set
forth in the prior sentence, severance pay benefits shall be paid as follows: (i) in one lump
sum equivalent to six (6) months’ salary on the day following the date which is six (6) months
following Employee’s Effective Termination Date with any remainder to be paid in bi-weekly
installments equivalent to the Employee’s salary commencing upon the next regularly scheduled
payroll date, if both the severance pay benefit is subject to Section 409A and if Employee is
a “specified employee” under Section 409A or (ii) for any severance pay benefits not subject
to clause (i), begin upon the next regularly scheduled payroll following the earlier to occur
of fifteen (15) days from the Company’s receipt of an executed Separation and Release
Agreement or the expiration of sixty (60) days after Employee’s Effective Termination Date and
shall be paid on the Company’s regularly
scheduled pay dates; provided, however, that if the before-stated sixty (60) day period ends in
a calendar year following the calendar year in which the sixty (60) day period commenced, then
any benefits not subject to clause (i) shall only begin on the next regularly scheduled payroll
following the expiration of sixty (60) days after the Employee’s Effective Termination Date.

 

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	18.	 	Assignment of Rights.

	 	(a)	 	Copyrights.  Executive agrees that all works of authorship fixed in any
tangible medium of expression by him during the term of this Agreement relating to the
Company’s business (“Works”), either solely or jointly with others, shall be and remain
exclusively the property of the Company. Each such Work created by Executive is a “work
made for hire” under the copyright law and the Company may file applications to register
copyright in such Works as author and copyright owner thereof. If, for any reason, a Work
created by Executive is excluded from the definition of a “work made for hire” under the
copyright law, then Executive does hereby assign, sell, and convey to the Company the
entire rights, title, and interests in and to such Work, including the copyright therein,
to the Company. Executive will execute any documents that the Company deems necessary in
connection with the assignment of such Work and copyright therein. Executive will take
whatever steps and do whatever acts the Company requests, including, but not limited to,
placement of the Company’s proper copyright notice on Works created by Executive to secure
or aid in securing copyright protection in such Works and will assist the Company or its
nominees in filing applications to register claims of copyright in such Works. The Company
shall have free and unlimited access at
all times to all Works and all copies thereof and shall have the right to claim and take
possession on demand of such Works and copies.

 

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	 	(b)	 	Inventions.  Executive agrees that all discoveries, concepts, and ideas,
whether patentable or not, including, but not limited to, apparatus, processes, methods,
compositions of matter, techniques, and formulae, as well as improvements thereof or
know-how related thereto, relating to any present or prospective product, process, or
service of the Company (“Inventions”) that Executive conceives or makes during the term of
this Agreement relating to the Company’s business, shall become and remain the exclusive
property of the Company, whether patentable or not, and Executive will, without royalty or
any other consideration:

	 	(i)	 	Inform the Company promptly and fully of such Inventions by written reports,
setting forth in detail the procedures employed and the results achieved;

	 	(ii)	 	Assign to the Company all of his rights, title, and interests in and to such
Inventions, any applications for United States and foreign Letters Patent, any United
States and foreign Letters Patent, and any renewals thereof granted upon such
Inventions;

	 	(iii)	 	Assist the Company or its nominees, at the expense of the Company, to obtain
such United States and foreign Letters Patent for such Inventions as the Company may
elect; and

	 	(iv)	 	Execute, acknowledge, and deliver to the Company at the Company’s expense such
written documents and instruments, and do such other acts, such as giving testimony in
support of his inventorship, as may be necessary in the opinion of the Company, to
obtain and maintain United States and foreign Letters Patent upon such Inventions and to
vest the entire rights and title thereto in the Company and to confirm the complete
ownership by the Company of such Inventions, patent applications, and patents.

 

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	19.	 	Company Property.  All records, files, drawings, documents, data in whatever form,
business equipment (including computers, PDAs, cell phones, etc.), and the like relating to,
or provided by, the Company shall be and remain the sole property of the Company. Upon
termination of employment, Executive shall immediately return to the Company all such items
without retention of any copies and without additional request by the Company. De minimis
items such as pay stubs, 401(k) plan summaries, employee bulletins, and the like are excluded
from this requirement.

	20.	 	Confidential Information.  Executive acknowledges that the Company and its affiliated
entities (herein collectively referred to as “Companies”) possess certain trade secrets as
well as other confidential and proprietary information which they have acquired or will
acquire at great effort and expense. Such information may include, without limitation,
confidential information, whether in tangible or intangible form, regarding the Companies’
products and services, marketing strategies, business plans, operations, costs, current or
prospective customer information (including customer identities, contacts, requirements,
creditworthiness, preferences, and like matters), product concepts, designs, prototypes or
specifications, research and development efforts, technical data and know-how, sales
information, including pricing and other terms and conditions of sale, financial information,
internal procedures, techniques, forecasts, methods, trade information, trade secrets,
software programs, project requirements, inventions, trademarks, trade names, and similar
information
regarding the Companies’ business(es) (collectively referred to herein as “Confidential
Information”). Executive further acknowledges that, as a result of his employment with the
Company, Executive will have access to, will become acquainted with, and/or may help develop,
such Confidential Information. Confidential Information shall not include information readily
available in the public so long as such information was not made available through fault of
Executive or wrong doing by any other individual.

 

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	21.	 	Restricted Use of Confidential Information.  Executive agrees that all Confidential
Information is and shall remain the sole and exclusive property of the Company and/or its
affiliated entities. Except as may be expressly authorized by the Company in writing, or
other than in the course of the Executive’s employment and for the benefit of the Company,
Executive agrees not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party while employed by the Company and for as long
thereafter as such information remains confidential (or as limited by applicable law).
Further, Executive agrees to use such Confidential Information only in the course of
Executive’s duties in furtherance of the Company’s business and agrees not to make use of any
such Confidential Information for Executive’s own purposes or for the benefit of any other
entity or person.

	22.	 	Acknowledged Need for Limited Restrictive Covenants.  Executive acknowledges that the
Companies have spent and will continue to expend substantial amounts of time, money and effort
to develop their business strategies, Confidential Information, customer identities and
relationships, goodwill and Executive relationships, and that Executive will benefit from
these efforts. Further, Executive acknowledges the inevitable use of, or near-certain
influence by his knowledge of, the Confidential Information disclosed to Executive during
the course of employment if allowed to compete against the Company in an unrestricted manner and
that such use would be unfair and extremely detrimental to the Company. Accordingly, based on
these legitimate business reasons, Executive acknowledges each of the Companies’ need to protect
their legitimate business interests by reasonably restricting Executive’s ability to compete
with the Company on a limited basis.

 

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	23.	 	Non-Solicitation.  During Executive’s employment and for a period of twenty-four (24)
months thereafter, Executive agrees not to directly or indirectly engage in the following
prohibited conduct:

	 	(a)	 	Solicit, offer products or services to, or accept orders for, any Competitive Products
or otherwise transact any competitive business on behalf of the Company (or any Affiliate
thereof) during the eighteen (18) month period preceding Executive’s date of separation or
about whom Executive possessed, or had access to, confidential and proprietary information;

	 	(b)	 	Attempt to entice or otherwise cause any third party to withdraw, curtail or cease
doing business with the Company (or any Affiliate thereof), specifically including
customers, vendors, independent contractors and other third party entities;

	 	(c)	 	Except in the course of the Executive’s employment and for the benefit of the Company,
disclose to any person or entity the identities, contacts or preferences of any customers
of the Company (or any Affiliate thereof), or the identity of any other persons or entities
having business dealings with the Company (or any Affiliate thereof);

 

21

 

	 	(d)	 	Induce any individual who has been employed by or had provided services to the Company
(or any Affiliate thereof) within the six (6) month period immediately preceding the
effective date of Executive’s separation to terminate such relationship with the Company
(or any Affiliate thereof);

	 	(e)	 	Assist, coordinate or otherwise offer employment to, accept employment inquiries from,
or employ any individual who is or had been employed by the Company (or any Affiliate
thereof) at any time within the six (6) month period immediately preceding such offer, or
inquiry;

	 	(f)	 	Communicate or indicate in any way to any customer of the Company (or any Affiliate
thereof), prior to formal separation from the Company, any interest, desire, plan, or
decision to separate from the Company; other than by way of long term retirement plans; or

	 	(g)	 	Otherwise attempt to directly or indirectly interfere with the Company’s business, the
business of any of the Companies or their relationship with their employees, consultants,
independent contractors or customers.

	24.	 	Limited Non-Compete.  For the above-stated reasons, and as a condition of employment
to the fullest extent permitted by law, Executive agrees during the Relevant Non-Compete
Period not to directly or indirectly engage in the following competitive activities:

	 	(a)	 	Executive shall not have any ownership interest in, work for, advise, consult, or have
any business connection or business or employment relationship in any competitive capacity
with any Competitor unless Executive provides written notice to the Company of such
relationship prior to entering into such relationship and, further, provides sufficient
written assurances to the Company’s satisfaction that such relationship will not, jeopardize
the Company’s legitimate interests or otherwise violate the terms of this Agreement;

 

22

 

	 	(b)	 	Executive shall not engage in any research, development, production, sale or distribution of
any Competitive Products;

	 	(c)	 	Executive shall not market, sell, or otherwise offer or provide any Competitive Products
within any Geographic Territory;

	 	(d)	 	Executive shall not distribute, market, sell or otherwise offer or provide any
Competitive Products to any customer of the Company.

	25.	 	Non-Compete Definitions.  For purposes of this Agreement, the Parties agree that the
following terms shall apply:

	 	(a)	 	“Affiliate” includes any parent, subsidiary, joint venture, sister company, or other
entity controlled, owned, managed or otherwise associated with the Company;

	 	(b)	 	“Assigned Customer Base” shall include all accounts or customers formally assigned to
Executive within a given territory or geographical area or contacted by him at any time
during the eighteen (18) month period preceding Executive’s date of separation;

	 	(c)	 	“Competitive Products” shall include any product or service that directly or indirectly
competes with, is substantially similar to, or serves as a reasonable substitute for, any
product or service in research, development or design, or manufactured, produced, sold or
distributed by the Company;

 

23

 

	 	(d)	 	“Competitor” shall include any person or entity that offers or is actively planning to
offer any Competitive Products and may include (but not be limited to) any entity
identified on the Company’s Illustrative Competitor List attached hereto as Exhibit B,
which shall be amended from time to time to reflect changes in the Company’s business and
competitive environment (updated competitor lists will be provided to Executive upon
reasonable request).

	 	(e)	 	“Geographic Territory” shall include any territory in which the Company has provided
any services or sold any products at any time during the twenty-four (24) month period
preceding Executive’s date of separation;

	 	(f)	 	“Relevant Non-Compete Period” shall include the period of Executive’s employment with
the Company as well as a period of twenty-four (24) months after such employment is
terminated, regardless of the reason for such termination provided, however, that this
period shall be reduced to the greater of (i) twelve (12) months or (ii) the total length
of Executive’s employment with the Company, including employment with any parent,
subsidiary or affiliated entity, if such employment is less than twenty-four (24) months;

	 	(g)	 	“Directly or indirectly” shall be construed such that the foregoing restrictions shall
apply equally to Executive whether performed individually or as a partner, shareholder,
officer, director, manager, Executive, salesperson, independent contractor, broker, agent,
or consultant for any other individual, partnership, firm, corporation, company, or other
entity engaged in such conduct.

 

24

 

	26.	 	Consent to Reasonableness.  In light of the above-referenced concerns, including
Executive’s knowledge of and access to the Companies’ Confidential Information, Executive
acknowledges that the terms of the foregoing restrictive covenants are reasonable and
necessary to protect the Company’s legitimate business interests and will not unreasonably
interfere with Executive’s ability to obtain alternate employment. As such, Executive hereby
agrees that such restrictions are valid and enforceable, and affirmatively waives any argument
or defense to the contrary. Executive acknowledges that this limited non-competition
provision is not an attempt to prevent Executive from obtaining other employment in violation
of IC § 22-5-3-1 or any other similar statute. Executive further acknowledges that the
Company may need to take action, including litigation, to enforce this limited non-competition
provision, which efforts the Parties stipulate shall not be deemed an attempt to prevent
Executive from obtaining other employment.

	27.	 	Survival of Restrictive Covenants.  Executive acknowledges that the above restrictive
covenants shall survive the termination of this Agreement and the termination of Executive’s
employment for any reason. Executive further acknowledges that any alleged breach by the
Company of any contractual, statutory or other obligation shall not excuse or terminate the
obligations hereunder or otherwise preclude the Company from seeking injunctive or other
relief. Rather, Executive acknowledges that such obligations are independent and separate
covenants undertaken by Executive for the benefit of the Company.

	28.	 	[Intentionally Omitted]

 

25

 

	29.	 	Post-Termination Notification.  For the duration of his Relevant Non-compete Period
or other restrictive covenant period, which ever is longer, Executive agrees to promptly
notify
the Company no later than five (5) business days of his acceptance of any employment or
consulting engagement. Such notice shall include sufficient information to ensure Executive
compliance with his non-compete obligations and must include at a minimum the following
information:  (i) the name of the employer or entity for which he is providing any consulting
services; (ii) a description of his intended duties as well as (iii) the anticipated start date.
Such information is required to ensure Executive’s compliance with his non-compete obligations
as well as all other applicable restrictive covenants. Such notice shall be provided in writing
to the Office of Vice President and General Counsel of the Company at 1069 State Road 46 E,
Batesville, Indiana 47006. Failure to timely provide such notice shall be deemed a material
breach of this Agreement and entitle the Company to return of any severance paid to Executive
plus attorneys’ fees. Executive further consents to the Company’s notification to any new
employer of Executive’s rights and obligations under this Agreement.

	30.	 	Scope of Restrictions.  If the scope of any restriction contained in any preceding
paragraphs of this Agreement is deemed too broad to permit enforcement of such restriction to
its fullest extent, then such restriction shall be enforced to the maximum extent permitted by
law, and Executive hereby consents and agrees that such scope may be judicially modified
accordingly in any proceeding brought to enforce such restriction.

 

26

 

	31.	 	Specific Enforcement/Injunctive Relief.  Executive agrees that it would be difficult
to measure any damages to the Company from a breach of the above-referenced restrictive
covenants, but acknowledges that the potential for such damages would be great, incalculable
and irremediable, and that monetary damages alone would be an inadequate remedy. Accordingly,
Executive agrees that the Company shall be entitled to immediate injunctive
relief against such breach, or threatened breach, in any court having jurisdiction. In
addition, if Executive violates any such restrictive covenant, Executive agrees that the period
of such violation shall be added to the term of the restriction. In determining the period of
any violation, the Parties stipulate that in any calendar month in which Executive engages in
any activity in violation of such provisions, Executive shall be deemed to have violated such
provision for the entire month, and that month shall be added to the duration of the
non-competition provision. Executive acknowledges that the remedies described above shall not
be the exclusive remedies, and the Company may seek any other remedy available to it either in
law or in equity, including, by way of example only, statutory remedies for misappropriation of
trade secrets, and including the recovery of compensatory or punitive damages. Executive
further agrees that the Company shall be entitled to an award of all costs and attorneys’ fees
incurred by it in any attempt to enforce the terms of this Agreement if the Company prevails.

	32.	 	Publicly Traded Stock.  The Parties agree that nothing contained in this Agreement
shall be construed to prohibit Executive from investing his personal assets in any stock or
corporate security traded or quoted on a national securities exchange or national market
system provided, however, such investments do not require any services on the part of
Executive in the operation or the affairs of the business or otherwise violate the Company’s
Code of Ethics.

 

27

 

	33.	 	Notice of Claim and Contractual Limitations Period.  Executive acknowledges the
Company’s need for prompt notice, investigation, and resolution of any claims that may be
filed against it due to the number of relationships it has with employees and others (and due
to the turnover among such individuals with knowledge relevant to any underlying claim).
Accordingly, Executive agrees prior to initiating any litigation of any type (including, but not
limited to, employment discrimination litigation, wage litigation, defamation, or any other
claim) to notify the Company, within One Hundred and Eighty (180) days after the claim accrued,
by sending a certified letter addressed to the Company’s General Counsel setting forth:  (i)
claimant’s name, address, and phone; (ii) the name of any attorney representing Executive; (iii)
the nature of the claim; (iv) the date the claim arose; and (v) the relief requested. This
provision is in addition to any other notice and exhaustion requirements that might apply. For
any dispute or claim of any type against the Company (including but not limited to employment
discrimination litigation, wage litigation, defamation, or any other claim), Executive must
commence legal action within the shorter of one (1) year of accrual of the cause of action or
such shorter period that may be specified by law.

	34.	 	Non-Jury Trials. Notwithstanding any right to a jury trial for any claims, Executive
waives any such right to a jury trial, and agrees that any claim of any type (including but
not limited to employment discrimination litigation, wage litigation, defamation, or any other
claim) lodged in any court will be tried, if at all, without a jury.

	35.	 	Choice of Forum.  Executive acknowledges that the Company is primarily based in
Indiana, and Executive understands and acknowledges the Company’s desire and need to defend
any litigation against it in Indiana. Accordingly, the Parties agree that any claim of any
type brought by Executive against the Company or any of its employees or agents must be
maintained only in a court sitting in Marion County, Indiana, or Ripley County, Indiana, or,
if a federal court, the Southern District of Indiana, Indianapolis Division. Executive
further understands and acknowledges that in the event the Company initiates litigation
against Executive, the Company may need to prosecute such litigation in such state where the
Executive is subject to personal jurisdiction. Accordingly, for purposes of enforcement of this
Agreement, Executive specifically consents to personal jurisdiction in the State of Indiana.

 

28

 

	36.	 	Choice of Law.  This Agreement shall be deemed to have been made within the County of
Ripley, State of Indiana and shall be interpreted and construed in accordance with the laws of
the State of Indiana. Any and all matters of dispute of any nature whatsoever arising out of,
or in any way connected with the interpretation of this Agreement, any disputes arising out of
the Agreement or the employment relationship between the Parties hereto, shall be governed by,
construed by and enforced in accordance with the laws of the State of Indiana without regard
to any applicable state’s choice of law provisions.

	37.	 	Titles.  Titles are used for the purpose of convenience in this Agreement and shall
be ignored in any construction of it.

	38.	 	Severability.  The Parties agree that each and every paragraph, sentence, clause,
term and provision of this Agreement is severable and that, in the event any portion of this
Agreement is adjudged to be invalid or unenforceable, the remaining portions thereof shall
remain in effect and be enforced to the fullest extent permitted by law. Further, should any
particular clause, covenant, or provision of this Agreement be held unreasonable or contrary
to public policy for any reason, the Parties acknowledge and agree that such covenant,
provision or clause shall automatically be deemed modified such that the contested covenant,
provision or clause will have the closest effect permitted by applicable law to the original
form and shall be given effect and enforced as so modified to whatever extent would be
reasonable and enforceable under applicable law.

 

29

 

	39.	 	Assignment-Notices.  The rights and obligations of the Company under this Agreement
shall inure to its benefit, as well as the benefit of its parent, subsidiary, successor and
affiliated entities, and shall be binding upon the successors and assigns of the Company.
This Agreement, being personal to Executive, cannot be assigned by Executive, but his personal
representative shall be bound by all its terms and conditions. Any notice required hereunder
shall be sufficient if in writing and mailed to the last known residence of Executive or to
the Company at its principal office with a copy mailed to the Office of the General Counsel.

	40.	 	Amendments and Modifications.  Except as specifically provided herein, no
modification, amendment, extension or waiver of this Agreement or any provision hereof shall
be binding upon the Company or Executive unless in writing and signed by both Parties. The
waiver by the Company or Executive of a breach of any provision of this Agreement shall not be
construed as a waiver of any subsequent breach. Nothing in this Agreement shall be construed
as a limitation upon the Company’s right to modify or amend any of its manuals or policies in
its sole discretion and any such modification or amendment which pertains to matters addressed
herein shall be deemed to be incorporated herein and made a part of this Agreement.

	41.	 	Outside Representations.  Executive represents and acknowledges that in signing this
Agreement he does not rely, and has not relied, upon any representation or statement made by
the Company or by any of the Company’s employees, officers, agents, stockholders, directors or
attorneys with regard to the subject matter, basis or effect of this Agreement other than
those specifically contained herein.

 

30

 

	42.	 	Other Remedies. The Executive agrees to execute and be bound by the terms and
conditions of the Company’s Limited Recapture Agreement, and any applicable laws, rules and
regulations.

	43.	 	Voluntary and Knowing Execution.  Executive acknowledges that he has been offered a
reasonable amount of time within which to consider and review this Agreement; that he has
carefully read and fully understands all of the provisions of this Agreement; and that he has
entered into this Agreement knowingly and voluntarily, with the assistance of counsel.

	44.	 	Liability Insurance. The Company shall cover the Executive under directors and
officers liability insurance both during and, while potential liability exists, after the term
of this Agreement in the same amount and to the same extent as the Company covers its other
officers and non independent director.

	45.	 	Attorney’s Fees. The Company shall promptly pay the Executive’s reasonable costs of
entering into this Agreement, including the reasonable fees and expenses of the Executive’s
counsel and other professionals, up to a maximum of $15,000.

	46.	 	Entire Agreement.  This Agreement constitutes the entire employment agreement between
the Parties hereto concerning the subject matter hereof and shall supersede all prior and
contemporaneous agreements between the Parties in connection with the subject matter of this
Agreement. Any pre-existing Employment Agreements shall be deemed null and void. Nothing in
this Agreement, however, shall affect any separately-executed written agreement addressing any
other issues.

 

31

 

IN WITNESS WHEREOF, the Parties have signed this Agreement effective as of the day and year
first above written.

“EXECUTIVE”

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	HILL-ROM HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Printed:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

CAUTION: READ BEFORE SIGNING

 

32

 

Exhibit A

SAMPLE SEPARATION AND RELEASE AGREEMENT

THIS SEPARATION and RELEASE AGREEMENT (“Agreement”) is entered into by and between EMPLOYEE’S
FULL NAME(“Executive”) and Hillenbrand Industries, Inc. (to be renamed Hill-Rom Holdings, Inc.)
(together with its subsidiaries and affiliates, the “Company”). To wit, the Parties agree as
follows:

	1.	 	Executive’s active employment by the Company shall terminate effective [date of
termination](Executive’s “Effective Termination Date”). Except as specifically provided by
this Agreement, or in any other non-employment agreement that may exist between the Company
and Executive, Executive agrees that the Company shall have no other obligations or
liabilities to him/her following his/her Effective Termination Date and that his/her receipt
of the Severance Benefits provided herein shall constitute a complete settlement, satisfaction
and waiver of any and all claims he/she may have against the Company.

	2.	 	Executive further submits, and the Company hereby accepts, his resignation as an Executive,
officer and director, as of his Effective Termination Date for any position he may hold. The
Parties agree that this resignation shall apply to all such positions Executive may hold with
the Company or any parent, subsidiary or affiliated entity thereof. Executive agrees to
execute any documents needed to effectuate such resignation. Executive further agrees to take
whatever steps are necessary to facilitate and ensure the smooth transition of his duties and
responsibilities to others.

 

 

 

	3.	 	Executive acknowledges that he has been advised of the American Jobs Creation Act of 2004,
which added Section 409A (“Section 409A”) to the Internal Revenue Code, and significantly
changed the taxation of nonqualified deferred compensation plans and arrangements. Under
proposed and final regulations as of the date of this Agreement, Executive has been advised
that if he is a “key Executive” covered by Section 409A or any similar law, his severance pay
may be treated by the Internal Revenue Service as providing “nonqualified deferred
compensation,” and therefore subject to Section 409A. In that event, several provisions in
Section 409A may affect Executive’s receipt of severance compensation. These include, but are
not limited to, a provision which requires that distributions to “specified employees” of
public companies on account of separation from service may not be made earlier than six (6)
months after the effective date of such separation. If applicable, failure to comply with
Section 409A can lead to immediate taxation of deferrals, with interest calculated at a
penalty rate and a 20% penalty. As a result of the requirements imposed by the American Jobs
Creation Act of 2004, Employee agrees if he/she is a “specified employee” at the time of
his/her termination of employment and if severance payments are covered as “non-qualified
deferred compensation” or otherwise not exempt, the severance pay benefits shall not be paid
until a date at least six (6) months after Executive’s Effective Termination Date from
Company, as more fully explained by Paragraph 4, below.

 

2

 

	4.	 	In consideration of the promises contained in this Agreement and contingent upon Executive’s
compliance with such promises, the Company agrees to provide Executive the following:

	 	(a)	 	Severance pay, in lieu of, and not in addition to any other contractual, notice or
statutory pay obligations (other than accrued wages and deferred compensation) in the
maximum total amount of [Insert Amount] Dollars and
[_____] Cents ($[_____]), less
applicable deductions or other set offs, payable as follows:

[For 409A Severance Pay for Specified Employees Only]

	 	(i)	 	A lump payment in the gross amount of [INSERT AMOUNT EQUAL TO 6 MONTHS’ PAY]
Dollars and [  ] Cents ($[_____]) payable the day following the sixth
(6th) month anniversary of Employee’s Effective Termination Date, with any
remaining amount to be paid in bi-weekly installments equivalent to Employee’s base
salary (i.e., _____Dollars and _____Cents ($_____), less applicable
deductions or other setoffs) commencing upon the next regularly scheduled payroll date
after the payment of the lump sum for a period of up to _____ weeks or until the
Employee becomes reemployed, whichever comes first.

[For Non-409A Severance Pay or 409A Severance Pay for Non-Specified Employees Only]

	 	(i)	 	Commencing on the next regularly scheduled payroll immediately following the
earlier to occur of fifteen (15) days from the Company’s receipt of an executed
Separation and Release Agreement or the expiration of sixty (60) days after Employee’s
Effective Termination Date, Employee shall be paid severance equivalent to his
bi-weekly base salary (i.e. _____Dollars and _____Cents ($_____),
less applicable deductions or other set-offs), for a period up to
[insert weeks] (_____) weeks following Employee’s Effective Termination Date or until
Employee becomes reemployed, whichever occurs first; provided, however, that if the
before-stated sixty (60) day period ends in a calendar year following the calendar year
in which the sixty (60) day period commenced, then this severance pay shall only begin
on the next regularly scheduled payroll following the expiration of sixty (60) days
after the Employee’s Effective Termination Date.

 

3

 

	 	(b)	 	Payment for any earned but unused vacation as of Executive’s Effective Termination
Date, less applicable deductions permitted or required by law payable in one lump sum
within fifteen (15) days after the Employee’s Effective Termination Date; and

	 	(c)	 	Group Life Insurance coverage until the above-referenced Severance Pay terminates.

	5.	 	Except as may be required by Section 409A, the above Severance Pay shall be paid in
accordance with the Company’s standard payroll practices (e.g. bi-weekly). The Parties agree
that the initial two (2) weeks of the foregoing Severance Pay shall be allocated as
consideration provided to Executive in exchange for his execution of a release in compliance
with the Older Workers Benefit Protection Act. The balance of the severance benefits and
other obligations undertaken by the Company pursuant to this Agreement shall be allocated as
consideration for all other promises and obligations undertaken by Executive, including
execution of a general release of claims.

	6.	 	The Company further agrees to provide Executive with limited out-placement counseling with a
company of its choice provided that Executive participates in such counseling immediately
following termination of employment. Notwithstanding anything in this Section
6 to the contrary, the out-placement counseling shall not be provided after the last day of the
second calendar year following the calendar year in which termination of employment occurs.

 

4

 

	7.	 	As of his/her Effective Termination Date, Executive will become ineligible to participate in
the Company’s health insurance program and continuation of coverage requirements under COBRA
(if any) will be triggered at that time. However, as additional consideration for the
promises and obligations contained herein (and except as may be prohibited by law), the
Company agrees to continue to pay the employer’s share of such coverage as provided under the
health care program selected by Executive as of his/her Effective Termination Date, subject to
any approved changes in coverage based on a qualified election, until the above-referenced
Severance Pay terminates, Executive accepts other employment or Executive becomes eligible for
alternative healthcare coverage, which ever comes first, provided Executive (i) timely
completes the applicable election of coverage forms and (ii) continues to pay the Executive
portion of the applicable premium(s). Thereafter, if applicable, coverage will be made
available to Executive at his sole expense (i.e., Executive will be responsible for
the full COBRA premium) for the remaining months of the COBRA coverage period made available
pursuant to applicable law. The medical insurance provided herein does not include any
disability coverage.

 

5

 

	8.	 	Should Executive become employed before the above-referenced Severance Benefits are exhausted
or terminated, Executive agrees to so notify the Company in writing within five (5) business
days of Executive’s acceptance of such employment, providing the name of such employer (or
entity to whom Executive may be providing consulting services), his/her intended duties as
well as the anticipated start date. Such information is required to ensure
Executive’s compliance with his/her non-compete obligations as well as all other applicable
restrictive covenants. This notice will also serve to trigger the Company’s right to terminate
all the above-referenced severance pay benefits (specifically excluding any lump sum payment
due) as well as all Company-paid or Company-provided benefits consistent with the above
paragraphs. Failure to timely provide such notice shall be deemed a material breach of this
Agreement entitling the Company to recover as damages the value of all benefits provided to
Executive hereunder plus attorneys fees. All other severance benefits however, shall terminate
upon reemployment.

	9.	 	Intentionally omitted

	10.	 	In exchange for the foregoing Severance Benefits, EMPLOYEE FULL NAME on behalf of
himself/herself, his/her heirs, representatives, agents and assigns hereby RELEASES,
INDEMNIFIES, HOLDS HARMLESS, and FOREVER DISCHARGES (i) Company Name. (ii) its parent,
subsidiary or affiliated entities, (iii) all of their present or former directors, officers,
Executives, shareholders, and agents, as well as, (iv) all predecessors, successors and
assigns thereof from any and all actions, charges, claims, demands, damages or liabilities of
any kind or character whatsoever, known or unknown, which Executive now has or may have had
through the effective date of this Agreement.

 

6

 

	11.	 	Without limiting the generality of the foregoing release, it shall include:  (i) all claims
or potential claims arising under any federal, state or local laws relating to the Parties’
employment relationship, including any claims Executive may have under the Civil Rights Acts
of 1866 and 1964, as amended, 42 U.S.C. §§ 1981 and 2000(e) et seq.; the Civil
Rights Act of 1991; the Age Discrimination in Employment Act, as amended, 29 U.S.C. §§ 621
et
seq.; the Americans with Disabilities Act of 1990, as amended, 42 U.S.C §§ 12,101
et seq.; the Fair Labor Standards Act 29 U.S.C. §§ 201 et seq.;
the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101, et
seq.; the Sarbanes-Oxley Act of 2002, specifically including the Corporate and Criminal
Fraud Accountability Act, 18 U.S.C. §1514,A et seq.; and any other federal,
state or local law governing the Parties’ employment relationship; (ii) any claims on account
of, arising out of or in any way connected with Executive’s employment with the Company or
leaving of that employment; (iii) any claims alleged or which could have been alleged in any
charge or complaint against the Company; (iv) any claims relating to the conduct of any
Executive, officer, director, agent or other representative of the Company; (v) any claims of
discrimination, harassment or retaliation on any basis; (vi) any claims arising from any legal
restrictions on an employer’s right to separate its Executives; (vii) any claims for personal
injury, compensatory or punitive damages or other forms of relief; and (viii) all other causes
of action sounding in contract, tort or other common law basis, including (a) the breach of any
alleged oral or written contract, (b) negligent or intentional misrepresentations, (c) wrongful
discharge, (d) just cause dismissal, (e) defamation, (f) interference with contract or business
relationship or (g) negligent or intentional infliction of emotional distress.

	12.	 	Executive further agrees and covenants not to sue the Company or any entity or individual
subject to the foregoing General Release with respect to any claims, demands, liabilities or
obligations release by this Agreement provided, however, that nothing contained in this
Agreement shall:

	 	(a)	 	prevent Executive from filing an administrative charge with the Equal Employment
Opportunity Commission or any other federal state or local agency; or

 

7

 

	 	(b)	 	prevent employee from challenging, under the Older Worker’s Benefit Protection Act (29
U.S.C. § 626), the knowing and voluntary nature of his/her release of any age claims in
this Agreement in court or before the Equal Employment Opportunity Commission. [INCLUDE
THIS SUBPARAGRAPH (b) IF EMPLOYEE IS AGE 40 OR OLDER]

	13.	 	Notwithstanding his/her right to file an administrative charge with the EEOC or any other
federal, state, or local agency, Executive agrees that with his/her release of claims in this
Agreement, he/she has waived any right he/she may have to recover monetary or other personal
relief in any proceeding based in whole or in part on claims released by him/her in this
Agreement. For example, Executive waives any right to monetary damages or reinstatement if an
administrative charge is brought against the Company whether by Employee, the EEOC, or any
other person or entity, including but not limited to any federal, state, or local agency.
Further, with his/her release of claims in this Agreement, Employee specifically assigns to
the Company his/her right to any recovery arising from any such proceeding.

	14.	 	[INCLUDE THIS LANGUAGE IF THE EMPLOYEE IS AGE 40 OR OLDER] The Parties acknowledge that it
is their mutual and specific intent that the above waiver fully complies with the requirements
of the Older Workers Benefit Protection Act (29 U.S.C. § 626) and any similar law governing
release of claims. Accordingly, Executive hereby acknowledges that:

	 	(a)	 	He/she has carefully read and fully understands all of the provisions of this Agreement
and that He/she has entered into this Agreement knowingly and voluntarily;

 

8

 

	 	(b)	 	The Severance Benefits offered in exchange for Executive’s release of claims exceed in
kind and scope that to which he/she would have otherwise been legally entitled absent the
execution of this Agreement;

	 	(c)	 	Prior to signing this Agreement, Executive had been advised, and is being advised by
this Agreement, to consult with an attorney of his/her choice concerning its terms and
conditions; and

	 	(d)	 	He/she has been offered at least [twenty-one (21)/forty-five (45)] days within which to
review and consider this Agreement.

	15.	 	[ADD THIS LANGUAGE IF THE EMLOYEE IS AGE 40 OR OLDER] The Parties agree that this Agreement
shall not become effective and enforceable until the date this Agreement is signed by both
Parties or seven (7) calendar days after its execution by Executive, whichever is later.
Executive may revoke this Agreement for any reason by providing written notice of such intent
to the Company within seven (7) days after he/she has signed this Agreement, thereby
forfeiting Executive’s right to receive any Severance Benefits provided hereunder and
rendering this Agreement null and void in its entirety.

	16.	 	[ADD THIS LANGUAGE IF THE EMPLOYEE IS IN CALIFORNIA] Executive specifically acknowledges
that, as a condition of this Agreement, he/she expressly releases all rights and claims that
he/she knows about as well as those he/she may not know about. Executive expressly waives all
rights under Section 1542 of the Civil Code of the State of California, which reads as
follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release which if known,
must have materially affected his settlement with the debtor.”

 

9

 

Notwithstanding the provision by Section 1542, and for the purpose of implementing a full and
complete release and discharge of the Company as set forth above, Executive expressly
acknowledges that this Agreement is intended to include and does in its effect, without
limitation, include all claims which Executive does not know or suspect to exist in his/her
favor at the time of signing this Agreement and that this Agreement expressly contemplates the
extinguishment of all such claims.

	17.	 	The Parties agree that nothing contained herein shall purport to waive or otherwise affect
any of Executive’s rights or claims that may arise after he/she signs this Agreement. It is
further understood by the Parties that nothing in this Agreement shall affect any rights
Executive may have under any Company sponsored Deferred Compensation Program, Executive Life
Insurance Bonus Plan, Stock Grant Award, Stock Option Grant, Restricted Stock Unit Award,
Pension Plan and/or Savings Plan (i.e., 401(k) plan) provided by the Company as of the
date of his/her termination, such items to be governed exclusively by the terms of the
applicable agreements or plan documents.

	18.	 	Similarly, notwithstanding any provision contained herein to the contrary, this Agreement
shall not constitute a waiver or release or otherwise affect Executive’s rights with respect
to any vested benefits, any rights he/she has to benefits which can not be waived by law, any
coverage provided under any Directors and Officers (“D&O”) policy, any rights Executive may
have under any indemnification agreement he/she has with the Company prior to the
date hereof, any rights he/she has as a shareholder, or any claim for breach of this Agreement,
including, but not limited to the benefits promised by the terms of this Agreement.

 

10

 

	19.	 	[Optional Provision for Equity Eligible Employees: Except as provided herein, Executive
acknowledges that he/she will not be eligible to receive or vest in any additional stock
options, stock awards or restricted stock units (“RSUs”) as of [his/her] Effective Termination
Date. Failure to exercise any vested options within the applicable period as set for in the
plan and/or grant will result in their forfeiture. Executive acknowledges that any stock
options, stock awards or RSUs held for less than the required period shall be deemed forfeited
as of the effective date of this Agreement. All terms and conditions of such stock options,
stock awards or RSUs shall not be affected by this Agreement, shall remain in full force and
effect, and shall govern the Parties’ rights with respect to such equity based awards.]

	20.	 	[Option A] Executive acknowledges that his/her termination and the Severance Benefits
offered hereunder were based on an individual determination and were not offered in
conjunction with any group termination or group severance program and waives any claim to the
contrary.

[Option B] Executive represents and agrees that he/she has been provided relevant cohort
information based on the information available to the Company as of the date this Agreement was
tendered to Executive. This information is attached hereto as Exhibit A. The Parties
acknowledge that simply providing such information does not mean and should not be interpreted
to mean that the Company was obligated to comply with 29 C.F.R. § 1625.22(f).

 

11

 

	21.	 	Executive hereby affirms and acknowledges his/her continued obligations to comply with the
post-termination covenants contained in his/her Employment Agreement, including but not
limited to, the non-compete, trade secret and confidentiality provisions. Executive
acknowledges that a copy of the Employment Agreement has been attached to this Agreement as
Exhibit A [B] or has otherwise been provided to him/her and, to the extent not inconsistent
with the terms of this Agreement or applicable law, the terms thereof shall be incorporated
herein by reference. Executive acknowledges that the restrictions contained therein are valid
and reasonable in every respect and are necessary to protect the Company’s legitimate business
interests. Executive hereby affirmatively waives any claim or defense to the contrary.
Executive hereby acknowledges that the definition of Competitor, as provided in his/her
Employment Agreement shall include but not be limited to those entities specifically
identified in the updated Competitor List, attached hereto as Exhibit B [C].

	22.	 	Executive acknowledges that the Company as well as its parent, subsidiary and affiliated
companies (“Companies” herein) possess, and he/she has been granted access to, certain trade
secrets as well as other confidential and proprietary information that they have acquired at
great effort and expense. Such information includes, without limitation, confidential
information regarding products and services, marketing strategies, business plans, operations,
costs, current or, prospective customer information (including customer contacts,
requirements, creditworthiness and like matters), product concepts, designs, prototypes or
specifications, regulatory compliance issues, research and development efforts, technical data
and know-how, sales information, including pricing and other terms and conditions of sale,
financial information, internal procedures, techniques, forecasts, methods, trade information,
trade secrets, software programs, project requirements, inventions, trademarks, trade names,
and similar information regarding the Companies’ business (collectively referred to herein as
“Confidential Information”).

 

12

 

	23.	 	Executive agrees that all such Confidential Information is and shall remain the sole and
exclusive property of the Company. Except as may be expressly authorized by the Company in
writing, or as may be required by law after providing due notice thereof to the Company,
Executive agrees not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party for as long thereafter as such information remains
confidential (or as limited by applicable law) and agrees not to make use of any such
Confidential Information for Executive’s own purposes or for the benefit of any other entity
or person. The Parties acknowledge that Confidential Information shall not include any
information that is otherwise made public through no fault of Executive or other wrong doing.

	24.	 	On or before Executive’s Effective Termination Date or per the Company’s request, Executive
agrees to return the original and all copies of all things in his/her possession or control
relating to the Company or its business, including but not limited to any and all contracts,
reports, memoranda, correspondence, manuals, forms, records, designs, budgets, contact
information or lists (including customer, vendor or supplier lists), ledger sheets or other
financial information, drawings, plans (including, but not limited to, business, marketing and
strategic plans), personnel or other business files, computer hardware, software, or access
codes, door and file keys, identification, credit cards, pager, phone, and any and all other
physical, intellectual, or personal property of any nature that he/she received, prepared,
helped prepare, or directed preparation of in connection with his/her employment with the
Company. Nothing contained herein shall be construed to require the
return of any non-confidential and de minimis items regarding Executive’s pay, benefits or other
rights of employment such as pay stubs, W-2 forms, 401(k) plan summaries, benefit statements,
etc.

 

13

 

	25.	 	Executive hereby consents and authorizes the Company to deduct as an offset from the
above-referenced severance payments the value of any Company property not returned or returned
in a damaged condition as well as any monies paid by the Company on Executive’s behalf (e.g.,
payment of any outstanding American Express bill).

	26.	 	Executive agrees to cooperate with the Company in connection with any pending or future
litigation, proceeding or other matter which has been or may be brought against or by the
Company before any agency, court, or other tribunal and concerning or relating in any way to
any matter falling within Executive’s knowledge or former area of responsibility. Executive
agrees to immediately notify the Company, through the Office of the General Counsel, in the
event he/she is contacted by any outside attorney (including paralegals or other affiliated
parties) unless (i) the Company is represented by the attorney, (ii) Executive is represented
by the attorney for the purpose of protecting his/her personal interests or (iii) the Company
has been advised of and has approved such contact. Executive agrees to provide reasonable
assistance and completely truthful testimony in such matters including, without limitation,
facilitating and assisting in the preparation of any underlying defense, responding to
discovery requests, preparing for and attending deposition(s) as well as appearing in court to
provide truthful testimony. The Company agrees to reimburse Executive for all reasonable out
of pocket expenses incurred at the request of the Company associated with such assistance and
testimony.

 

14

 

	27.	 	Executive agrees not to make any written or oral statement that may defame, disparage or cast
in a negative light so as to do harm to the personal or professional reputation of (a) the
Company, (b) its Executives, officers, directors or trustees or (c) the services and/or
products provided by the Company and its subsidiaries or affiliate entities. Similarly, in
response to any written inquiry from any prospective employer or in connection with a written
inquiry in connection with any future business relationship involving Executive, the Company
agrees not to provide any information that may defame, disparage or cast in a negative light
so as to do harm to the personal or professional reputation of Executive. The Parties
acknowledge, however, that nothing contained herein shall be construed to prevent or prohibit
the Company or the Executive from providing truthful information in response to any court
order, discovery request, subpoena or other lawful request.

	28.	 	EXECUTIVE SPECIFICALLY AGREES AND UNDERSTANDS THAT THE EXISTENCE AND TERMS OF THIS AGREEMENT
ARE STRICTLY CONFIDENTIAL AND THAT SUCH CONFIDENTIALITY IS A MATERIAL TERM OF THIS AGREEMENT.
Accordingly, except as required by law or unless authorized to do so by the Company in
writing, Executive agrees that he/she shall not communicate, display or otherwise reveal any
of the contents of this Agreement to anyone other than his/her spouse, legal counsel or
financial advisor provided, however, that they are first advised of the confidential nature of
this Agreement and Executive obtains their agreement to be bound by the same. The Company
agrees that Executive may respond to legitimate inquiries regarding the termination of his/her
employment by stating that the Parties have terminated their relationship on an amicable basis
and that the Parties have entered into a Confidential Separation and Release Agreement that
prohibits him/her from further
discussing the specifics of his/her separation. Nothing contained herein shall be construed to
prevent Executive from discussing or otherwise advising subsequent employers of the existence of
any obligations as set forth in his/her Employment Agreement. Further, nothing contained herein
shall be construed to limit or otherwise restrict the Company’s ability to disclose the terms
and conditions of this Agreement as may be required by business necessity.

 

15

 

	29.	 	In the event that Executive breaches or threatens to breach any provision of this Agreement,
he/she agrees that the Company shall be entitled to seek any and all equitable and legal
relief provided by law, specifically including immediate and permanent injunctive relief.
Executive hereby waives any claim that the Company has an adequate remedy at law. In
addition, and to the extent not prohibited by law, Executive agrees that the Company shall be
entitled to discontinue providing any additional Severance Benefits upon such breach or
threatened breach as well as an award of all costs and attorneys’ fees incurred by the Company
in any successful effort to enforce the terms of this Agreement. Executive agrees that the
foregoing relief shall not be construed to limit or otherwise restrict the Company’s ability
to pursue any other remedy provided by law, including the recovery of any actual, compensatory
or punitive damages. Moreover, if Executive pursues any claims against the Company subject to
the foregoing General Release, or breaches the above confidentiality provision, Executive
agrees to immediately reimburse the Company for the value of all benefits received under this
Agreement to the fullest extent permitted by law.

	30.	 	Similarly, in the event that the Company breaches or threatens to breach any provision of
this Agreement, Executive shall be entitled to seek any and all equitable or other available
relief provided by law, specifically including immediate and permanent injunctive relief. In
the
event Executive is required to file suit to enforce the terms of this Agreement, the Company
agrees that Executive shall be entitled to an award of all costs and attorneys’ fees incurred by
him/her in any wholly successful effort (i.e. entry of a judgment in his/her favor) to enforce
the terms of this Agreement. In the event Executive is wholly unsuccessful, the Company shall
be entitled to an award of its costs and attorneys’ fees.

 

16

 

	31.	 	Both Parties acknowledge that this Agreement is entered into solely for the purpose of
terminating Executive’s employment relationship with the Company on an amicable basis and
shall not be construed as an admission of liability or wrongdoing by the Company or Executive,
both Parties having expressly denied any such liability or wrongdoing.

	32.	 	Each of the promises and obligations shall be binding upon and shall inure to the benefit of
the heirs, executors, administrators, assigns and successors in interest of each of the
Parties.

	33.	 	The Parties agree that each and every paragraph, sentence, clause, term and provision of this
Agreement is severable and that, if any portion of this Agreement should be deemed not
enforceable for any reason, such portion shall be stricken and the remaining portion or
portions thereof should continue to be enforced to the fullest extent permitted by applicable
law.

	34.	 	This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Indiana without regard to any applicable state’s choice of law provisions.

	35.	 	[USE THIS LANGUAGE IF OWBPA LANGUAGE (FOR EMPLOYEES AGE 40 OR OVER) IS NOT INCLUDED]
Employee acknowledges that he/she has been offered a period of twenty-one (21) days within
which to consider and review this Agreement; that
he/she has carefully read and fully understands all of the provisions of this Agreement; and
that he/she has entered into this Agreement knowingly and voluntarily.

 

17

 

	36.	 	Executive represents and acknowledges that in signing this Agreement he/she does not rely,
and has not relied, upon any representation or statement made by the Company or by any of the
Company’s Executives, officers, agents, stockholders, directors or attorneys with regard to
the subject matter, basis or effect of this Agreement other than those specifically contained
herein.

	37.	 	This Agreement represents the entire agreement between the Parties concerning the subject
matter hereof, shall supersede any and all prior agreements which may otherwise exist between
them concerning the subject matter hereof (specifically excluding, however, the
post-termination obligations contained in an Executive’s Employment Agreement, any obligations
contained in an existing and valid Indemnity Agreement of Change in Control or any obligation
contained in any other legally-binding document), and shall not be altered, amended, modified
or otherwise changed except by a writing executed by both Parties.

PLEASE
READ CAREFULLY. THIS SEPARATION AND RELEASE

AGREEMENT INCLUDES A COMPLETE RELEASE OF ALL

KNOWN AND UNKNOWN CLAIMS.

 

18

 

IN WITNESS WHEREOF, the Parties have themselves signed, or caused a duly authorized agent
thereof to sign, this Agreement on their behalf and thereby acknowledge their intent to be bound by
its terms and conditions.

	 	 	 	 	 	 	 	 	 	 	 
	[EXECUTIVE]	 	 	 	COMPANY NAME	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signed:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Printed:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Dated:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 

19

 

Exhibit B

ILLUSTRATIVE COMPETITOR LIST

The following is an illustrative, non-exhaustive list of Competitors with whom Executive may
not, during his relevant non-compete period, directly or indirectly engage in any of the
competitive activities proscribed by the terms of his Employment Agreement.

	 	 	 	 	 	 	 
	•

	 	Amico Corporation
	 	•
	 	Anodyne Medical Device, Inc.
	 
	 	 	 	 	 	 
	•

	 	APEX Medical Corp.
	 	•
	 	Apria Healthcare Inc.
	 
	 	 	 	 	 	 
	•

	 	Aramark Corporation
	 	•
	 	Ascom (Ascom US, Inc.)
	 
	 	 	 	 	 	 
	•

	 	Barton Medical Corporation
	 	•
	 	B.G. Industries, Inc.
	 
	 	 	 	 	 	 
	•

	 	CareMed Supply, Inc.
	 	•
	 	Comfortex, Inc.
	 
	 	 	 	 	 	 
	•

	 	Corona Medical SAS
	 	•
	 	Custom Medical Solutions
	 
	 	 	 	 	 	 
	•

	 	Dukane Communication Systems, a division of Edwards Systems Technology, Inc.
	 	•
	 	Freedom Medical, Inc.
	 
	 	 	 	 	 	 
	•

	 	Gaymar Holding Company, LLC (Gaymar Industries, Inc.)
	 	•
	 	GF Health Products, Inc. (Graham Field)
	 
	 	 	 	 	 	 
	•

	 	Getinge Group (Arjo; Getinge;
Maquet; Pegasus; Huntleigh Technology Plc (Huntleigh Healthcare, LLC))
	 	•
	 	Intego Systems, Inc. (formerly known as Wescom Products, Inc.)

 

 

 

	 	 	 	 	 	 	 
	•

	 	Industrie Guido Malvestio S.P.A.
	 	•
	 	Invacare Corporation
	 
	 	 	 	 	 	 
	•

	 	Joerns Healthcare, Inc.
	 	•
	 	Joh. Stiegelmeyer & Co., GmbH (Stiegelmeyer)
	 
	 	 	 	 	 	 
	•

	 	Kinetic Concepts, Inc. (KCI)
	 	•
	 	Linet (Linet France, Linet Far East)
	 
	 	 	 	 	 	 
	•

	 	MedaSTAT, LLC
	 	•
	 	Medline Industries, Inc.
	 
	 	 	 	 	 	 
	•

	 	Merivaara Corporation
	 	•
	 	Modular Services Company
	 
	 	 	 	 	 	 
	•

	 	Nemschoff Chairs, Inc.
	 	•
	 	Nurture by Steelcase, Inc.
	 
	 	 	 	 	 	 
	•

	 	Paramount Bed Company, Ltd.
	 	•
	 	Pardo
	 
	 	 	 	 	 	 
	•

	 	Pegasus Airwave, Inc.
	 	•
	 	Premise Corporation
	 
	 	 	 	 	 	 
	•

	 	Radianse, Inc.
	 	•
	 	Rauland-Borg Corporation
	 
	 	 	 	 	 	 
	•

	 	Recovercare, LLC (Stenbar)
	 	•
	 	SIZEwise Rentals, LLC
	 
	 	 	 	 	 	 
	•

	 	Statcom (Jackson Healthcare Solutions)
	 	•
	 	Stryker Corporation
	 
	 	 	 	 	 	 
	•

	 	Tele-Tracking Technologies, Inc.
	 	•
	 	Tempur-Pedic Medical, Inc.
	 
	 	 	 	 	 	 
	•

	 	Universal Hospital Services, Inc.
	 	•
	 	Voelker AG

While the above list is intended to identify the Company’s primary competitors, it should not
be construed as all encompassing so as to exclude other potential competitors falling within the
Non-Compete definitions of “Competitor.” The Company reserves the right to amend this list at any
time in its sole discretion to identify other or additional Competitors based on changes
in the products and services offered, changes in its business or industry as well as changes
in the duties and responsibilities of the individual Executive. An updated list will be provided
to Executive upon reasonable request. Executives are encouraged to consult with the Company prior
to accepting any position with any potential competitor.

(Revised list 1-1-2008)

 

2Exhibit 10.2

Exhibit 10.2

TIER 1 — CEO

CHANGE IN CONTROL AGREEMENT

This Change in Control Agreement (the “Agreement”) is made and entered into on January
6, 2010, to be effective on January 8, 2010, by and between Hill-Rom Holdings, Inc., an
Indiana corporation (the “Company”), and John J. Greisch (the “Executive”).

WHEREAS, the Company considers it essential to the best interests of its shareholders to
foster continuous employment by the Company and its subsidiaries of their key management personnel;

WHEREAS, the Compensation and Management Development Committee (the “Committee”) of the Board
of Directors (the “Board”) of the Company has recommended, and the Board has approved, that the
Company enter into Change in Control Agreements with key executives of the Company and its
subsidiaries who are from time to time designated by the management of the Company and approved by
the Committee;

WHEREAS, the Committee and the Board believe that Executive has made valuable contributions to
the productivity and profitability of the Company and consider it essential to the best interests
of the Company and its shareholders that Executive be encouraged to remain with the Company; and

WHEREAS, the Board believes it is in the best interests of the Company and its shareholders
that Executive continue in employment with the Company in the event of any proposed Change in
Control (as defined below) and be in a position to provide assessment and advice to the Board
regarding any proposed Change in Control without concern that Executive might be unduly distracted
by the personal uncertainties and risks created by any proposed Change in Control:

NOW, THEREFORE, the Company and Executive agree as follows:

1. Termination following a Change in Control. After the occurrence of a Change in Control,
the Company will provide or cause to be provided to Executive the rights and benefits described in
Section 2 hereof in the event that Executive’s employment with the Company and its subsidiaries is
terminated:

(a) by the Company for any reason other than on account of his death, permanent disability,
retirement or for Cause at any time prior to the third anniversary of a Change in Control; or

(b) by Executive for Good Reason at any time prior to the third anniversary of a Change in
Control.

 

 

 

Anything in this Agreement to the contrary notwithstanding, if a Change in Control occurs and
if the Executive’s employment with the Company is terminated by the Company, without
Cause, prior to the date on which the Change in Control occurs, and if it is reasonably
demonstrated by Executive that such termination of employment (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise
arose in connection with or anticipation of a Change in Control which subsequently occurs within 3
months of such termination, then for purposes of this Agreement (including Section 3 hereof) a
Change in Control shall be deemed to have occurred on the day immediately prior to such termination
of employment and all references in Section 2 to payments within a specified period as allowed by
law following “Termination” shall instead be references to the specified period following the
Change in Control.

The rights and benefits described in Section 2 and 3 hereof shall be in lieu of any severance
payments otherwise payable to Executive under any employment agreement or severance plan or program
of the Company or any of its subsidiaries but shall not otherwise affect Executive’s rights to
compensation or benefits under the Company’s compensation and benefit programs except to the extent
expressly provided herein.

2. Rights and Benefits Upon Termination.

In the event of the termination of Executive’s employment under any of the circumstances set
forth in Section 1 hereof (“Termination”), the Company shall provide or cause to be provided to
Executive the following rights and benefits provided that Executive executes and delivers to the
Company within 45 days of the Termination a Release in the form attached hereto as Exhibit A
(“Release”):

(a) a lump sum payment in cash in the amount of three times Executive’s Annual Base Salary (as
defined below), payable (i) on the date which is six (6) months following Termination, if the
Executive is a “specified employee” as defined in Code Section 409A(a)(2)(B)(i) of the Internal
Revenue Code of 1986, as amended (“Code”) (Section 409A of the Code is hereunder referred to as
“Section 409A”) and the Treasury Regulations promulgated thereunder, or (ii) on the next regularly
scheduled payroll following the earlier to occur of fifteen (15) days from the Company’s receipt of
an executed Release or the expiration of sixty (60) days after Executive’s Termination, if
Executive is not such a “specified employee” (or such payment is exempt from Section 409A);
provided, however, that if the before-stated sixty (60) day period ends in a calendar year
following the calendar year in which the sixty (60) day period commenced, then any benefits not
subject to clause (i) shall only begin on the next regularly scheduled payroll following the
expiration of sixty (60) days after the Executive’s Termination.

(b) for the 36 months following Termination, continued health and medical insurance coverage
for Executive and his dependents substantially comparable (with regard to both benefits and
employee contributions) to the coverage provided by the Company immediately prior to the Change in
Control for active employees of equivalent rank. From the end of such 36-month period until
Executive attains Social Security Retirement Age, Executive shall have the right to purchase (at
COBRA rates applicable to such coverage) continued coverage for himself and his dependents under
one or more plans maintained by the Company for its active employees, to the extent Executive would
have been eligible to purchase continued coverage under the plan in effect immediately prior to the
Change in Control had his employment terminated 36 months
following Termination.

 

2

 

The payment of any health or medical claims for the health and medical
coverage provided in this subparagraph (b) shall be made to the Executive as soon as
administratively practicable after the Executive has provided the appropriate claim documentation,
but in no event shall the payment for any such health or medical claim be paid later than the last
day of the calendar year following the calendar year in which the expense was incurred.
Notwithstanding anything herein to the contrary, to the extent required by Section 409A: (1) the
amount of medical claims eligible for reimbursement or to be provided as an in-kind benefit under
this Agreement during a calendar year may not affect the medical claims eligible for reimbursement
or to be provided as an in-kind benefit in any other calendar year, and (2) the right to
reimbursement or in-kind benefits under this Agreement shall not be subject to liquidation or
exchange for another benefit;

(c) continuation for Executive, for a period of three years following Termination, of the
Executive Life Insurance Bonus Plan (if any) provided for Executive by the Company immediately
prior to the Change in Control and the group term life insurance program provided for executive
immediately prior to the Change in Control. The payment of any claim for death benefits provided
under this subparagraph (c) shall be paid in accordance with the appropriate program, provided,
however that if the death benefit is subject to Section 409A, then the death benefit shall be paid,
as determined by the Company in its complete and absolute discretion, no later than the later to
occur of (i) the last day of calendar year in which the death of the Executive occurs or (ii) the
90th day following the Executive’s death;

(d) a lump sum payment in cash, payable within 30 days after Termination, equal to all accrued
and unpaid vacation, reimbursable business expenses, and similar miscellaneous benefits as of the
Termination, provided, however, that to the extent that any such miscellaneous benefits are subject
to Section 409A, such benefits shall be paid in one lump sum (i) on the date which is six months
following Termination, if the Executive is a “specified employee” as defined in Code Section
409A(a)(2)(B)(i) or (ii) on the next regularly scheduled payroll following the earlier to occur of
fifteen (15) days from the Company’s receipt of an executed Release or the expiration of sixty (60)
days after Executive’s Termination, if Executive is not such a “specified employee;” provided,
however, that if the before-stated sixty (60) day period ends in a calendar year following the
calendar year in which the sixty (60) day period commenced, then any benefits not subject to
clause (i) shall only begin on the next regularly scheduled payroll following the expiration of
sixty (60) days after the Executive’s Termination. ; and

(e) a lump sum payment in cash for amounts accrued as of the Termination under the
Supplemental Executive Retirement Plan for the payment of benefits under such plan and an
additional amount equal to the amounts accrued for the last 12 months times three (3) immediately
prior to the Termination Date in any of the Defined Contribution, Matching Account and/or
Supplemental Contribution Account under the Supplemental Executive Retirement Plan, payable (i) on
the date which is six (6) months following Termination, if the Executive is a “specified employee”
as defined in Code Section 409A(a)(2)(B)(i) or (ii) on the next regularly scheduled payroll
following the earlier to occur of fifteen (15) days from the Company’s receipt of an executed
Release or the expiration of sixty (60) days after Executive’s Termination, if Executive is not
such a “specified employee” (or such payment is exempt from Section 409A); provided, however, that
if the before-stated sixty (60) day period ends in a calendar year
following the calendar year in which the sixty (60) day period commenced, then any benefits
not subject to clause (i) shall only begin on the next regularly scheduled payroll following the
expiration of sixty (60) days after the Executive’s Termination.

 

3

 

3. Additional Benefits Upon A Change in Control.

Upon the occurrence of a Change in Control, so long as Executive is an employee of the Company
at that time, the Company will provide or cause to be provided to Executive the following rights
and benefits whether or not Executive’s employment with the Company or its subsidiaries is later
terminated:

(a) a lump sum payment in cash equal to the amount of Short-Term Incentive Compensation which
would be payable to Executive if the company performance targets (at 100%) with respect to such
incentive compensation in effect for the entire year in which the Change in Control occurred had
been achieved, payable within 30 days of the Change in Control;

(b) the number of shares of common stock of the Company that would be payable to Executive
under the Company’s Stock Incentive Plan provided, however, that if the Change in Control involves
a merger, acquisition or other corporate restructuring where the Company is not the surviving
entity (or survives as a wholly-owned subsidiary of another entity), then, in lieu of such shares
of common stock of the Company, Executive shall be entitled to receive the consideration he would
have received in such transaction in exchange for such shares of common stock; and provided,
further, that the Company shall in any case have the right to substitute cash for such shares of
common stock of the Company or merger consideration in an amount equal to the fair market value of
such shares or merger consideration as determined by the Company including:

	 	(i)	 	immediate vesting of all Bonus Stock Awards (as
defined in the Company’s Stock Incentive Plan) held by Executive;

	 	(ii)	 	immediate vesting of all outstanding Stock
Options held by Executive under the Company’s Stock Incentive Plan;

	 	(iii)	 	immediate vesting of all awards of Restricted
Stock held by Executive under any Stock Award Agreements (as defined in
the Company’s Stock Incentive Plan) with Executive and Hill-Rom
Holdings, Inc.;

	 	(iv)	 	immediate vesting of all awards of Deferred
Stock (as defined in the Company’s Stock Incentive Plan) (also known as
Restricted Stock Units) held by Executive under the Company’s Stock
Incentive Plan; and

	 	(v)	 	the exercise of any Stock Appreciation Right
(as defined in the Company’s Stock Incentive Plan) within 60 days of a
Change in Control as provided by section 7.2 of the Stock Incentive
Plan.

 

4

 

Any distribution to be made under this Section 3 shall be made no later than the
15th day of the third month following the Company’s first taxable year in which the
Change in Control occurs.

4. Confidentiality; Non-Competition.

(a) Executive shall not at any time without the prior approval of the Company disclose to any
person, firm, corporation or other entity any trade secret, confidential customer information, or
other proprietary information not known within the industry or by the public generally regarding
the business then being conducted by the Company, including, without limitation, financial
information, marketing and sales information and business and strategic plans.

(b) Executive shall not at any time during the term of this Agreement and within three years
following the termination of his employment with the Company, (i) solicit any persons who are
employed by the Company to terminate their employment with the Company, and (ii) directly or
indirectly (either individually or as an agent, employee, director, officer, stockholder, partner
or individual proprietor, consultant or as an investor who has made advances of loan capital or
contributions to equity capital), engage in any activity which he knows (or reasonably should have
known) to be competitive with the business of the Company as then being carried on. Nothing in
this Agreement, however, shall prevent Executive from owning, as an investment, up to two percent
(2%) of the outstanding equity capital of any competitor of the Company, shares of which are
regularly traded on a national securities exchange or in over-the-counter markets. The
restrictions set forth in this Section 5 shall not apply in the event of a termination of
Executive’s employment pursuant to Section 1.

5. Section 409A Acknowledgement.

Executive acknowledges that he has been advised of Section 409A, which has significantly
changed the taxation of nonqualified deferred compensation plans and arrangements. Under proposed
and final regulations as of the date of this Agreement, Executive has been advised that Executive’s
severance pay and other Termination benefits may be treated by the Internal Revenue Service as
“nonqualified deferred compensation,” subject to Section 409A. In that event, several provisions
in Section 409A may affect Executive’s receipt of severance compensation, including the timing
thereof. These include, but are not limited to, a provision which requires that distributions to
“specified employees” (as defined in Section 409A) on account of separation from service may not
be made earlier than six (6) months after the effective date of separation. If applicable, failure
to comply with Section 409A can lead to immediate taxation of such deferrals, with interest
calculated at a penalty rate and a 20% excise tax. As a result of the requirements imposed by the
American Jobs Creation Act of 2004, Executive agrees that if Executive is a “specified employee”
at the time of Executive’s termination and if severance payments are covered as “nonqualified
deferred compensation” or otherwise not exempt, such severance pay (and other benefits to the
extent applicable)

 

5

 

due Executive at time of termination shall not be paid until a date at least six
(6) months after Executive’s effective termination date.
Executive acknowledges that, notwithstanding anything contained herein to the contrary, both
Executive and the Company shall each be independently responsible for accessing their own risks and
liabilities under Section 409A that may be associated with any payment made under the terms of this
Agreement which may be deemed to trigger Section 409A. To the extent applicable, Executive
understands and agrees that Executive shall have the responsibility for, and Executive agrees to
pay, any and all appropriate income tax or other tax obligations for which Executive is
individually responsible and/or related to receipt of any benefits provided in this Agreement.
Executive agrees to fully indemnify and hold the Company harmless for any taxes, penalties,
interest, cost or attorneys’ fee assessed against or incurred by the Company on account of such
benefits having been provided to Executive or based on any alleged failure to withhold taxes or
satisfy any claimed obligation. Executive understands and acknowledges that neither the Company,
nor any of its employees, attorneys, or other representatives has provided or will provide
Executive with any legal or financial advice concerning taxes or any other matter, and that
Executive has not relied on any such advice in deciding whether to enter into this Agreement.
Notwithstanding any provision of this Agreement to the contrary, to the extent that any payment
under the terms of this Agreement would constitute an impermissible acceleration of payments under
Section 409A or any regulations or Treasury guidance promulgated thereunder, such payments shall be
made no earlier than at such times allowed under Section 409A. If any provision of this Agreement
(or of any award of compensation) would cause Executive to incur any additional tax or interest
under Section 409A or any regulations or Treasury guidance promulgated thereunder, the Company or
its successor may reform such provision; provided that it will (i) maintain, to the maximum extent
practicable, the original intent of the applicable provision without violating the provisions of
Section 409A and (ii) notify and consult with Executive regarding such amendments or modifications
prior to the effective date of any such change.

6. Definitions. As used in this Agreement, the following terms shall have the following
meanings:

	 	(a)	 	“Annual Base Salary” means the annualized amount of
Executive’s rate of base salary in effect immediately before the Change in
Control or immediately before the date of Termination, whichever is greater.

	 	(b)	 	“Cause” shall have the same meaning set forth in any
current employment agreement that the Executive has with the Company or any of
its subsidiaries.

 

6

 

	 	(c)	 	A “Change in Control” shall be deemed to occur on:

	 	(i)	 	the date that any person, corporation,
partnership, syndicate, trust,
estate or other group acting with a view to the acquisition, holding
or disposition of securities of the Company, becomes, directly or
indirectly, the beneficial owner, as defined in Rule 13d-3 under the
Securities Exchange Act of 1934 (“Beneficial Owner”), of securities
of the Company representing 35% or more of the voting power of all securities of the Company having the right under
ordinary circumstances to vote at an election of the Board (“Voting
Securities”), other than by reason of (x) the acquisition of
securities of the Company by the Company or any of its Subsidiaries
or any employee benefit plan of the Company or any of its
Subsidiaries, (y) the acquisition of securities of the Company
directly from the Company, or (z) the acquisition of Company
securities by one or more members of the Hillenbrand Family (which
term shall mean descendants of John A. Hillenbrand and their spouses,
trusts primarily for their benefit or entities controlled by them);

	 	(ii)	 	the consummation of a merger or consolidation
of the Company with another corporation unless

(A) the shareholders of the Company, immediately prior to the merger
or consolidation, beneficially own, immediately after the merger or
consolidation, shares entitling such shareholders to 50% or more of
the voting power of all securities of the corporation surviving the
merger or consolidation having the right under ordinary circumstances
to vote at an election of directors in substantially the same
proportions as their ownership, immediately prior to such merger or
consolidation, of Voting Securities of the Company;

(B) no person, corporation, partnership, syndicate, trust, estate or
other group beneficially owns, directly or indirectly, 35% or more of
the voting power of the outstanding voting securities of the
corporation resulting from such merger or consolidation except to the
extent that such ownership existed prior to such merger or
consolidation; and

(C) the members of the Company’s Board, immediately prior to the
merger or consolidation, constitute, immediately after the merger or
consolidation, a majority of the board of directors of the
corporation issuing cash or securities in the merger;

	 	(iii)	 	the date on which a majority of the members of
the Board consist of persons other than Current Directors (which term
shall mean any member of the Board on the date hereof and any member
whose nomination or election has been approved by a majority of Current
Directors then on the Board);

	 	(iv)	 	the consummation of a sale or other disposition
of all or substantially all of the assets of the Company; or

	 	(v)	 	the date of approval by the shareholders of the
Company of a plan of complete liquidation of the Company.

 

7

 

	 	(d)	 	“Good Reason” shall have the same meaning set forth in
any current employment agreement that the Executive has with the Company or any
of its subsidiaries.

	 	(e)	 	“Normal Retirement Benefit” shall have the meaning set
forth in the Pension Plan.

	 	(f)	 	“Pension Plan” means the Hill-Rom, Inc. Pension Plan as
amended from time to time.

	 	(g)	 	“Section 409A” means Section 409A of the Internal
Revenue Code.

	 	(h)	 	“Short-Term Incentive Compensation” means the Incentive
Compensation payable under the Short-Term Incentive Compensation Program, or
any successor or other short-term incentive plan or program.

	 	(i)	 	“Early Retirement Benefits” early retirement benefits
shall have the meaning set forth in the pension plan which defines the age at
which full, unreduced benefits are available without any early retirement
reduction being applied

	 	(j)	 	“Executive Life Insurance Bonus Program” shall mean a
program under which the Company pays the annual premium for a whole life
insurance policy on the life of Executive.

	 	(k)	 	“Supplemental Pension Plan” means the SERP or any
successor long-term supplemental pension plan or program or any other
commitment made by the company to provide retirement benefits in addition to
those provided by the pension plan trust.

	 	(l)	 	“Defined Contribution Accounts”, “Matching Accounts”, and
“Supplemental Contribution Accounts” shall have the meanings set forth in
the Company’s Supplemental Executive Retirement Program (“SERP”).

7. Notice.

(a) Any discharge or termination of Executive’s employment pursuant to Section 1 shall be
communicated in a written notice to the other party hereto setting forth the effective date of such
discharge or termination (which date shall not be more than 30 days after the date such notice is
delivered) and, in the case of a discharge for Cause or a termination for Good Reason the basis for
such discharge or termination.

(b) For purposes of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given
when delivered or mailed by United States certified or registered mail, return receipt
requested, postage prepaid, addressed to 1069 Highway 46 East, Batesville, Indiana 47006 provided
that all notices to the Company shall be directed to the attention of the Board with a copy to Vice
President and General Counsel, or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notice of change of address shall be effective
only upon receipt.

 

8

 

8. No Duty to Mitigate. Executive is not required to seek other employment or otherwise
mitigate the amount of any payments to be made by the Company pursuant to this Agreement.

9. Assignment.

(a) This Agreement is personal to Executive and shall not be assignable by Executive other
than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of
and be enforceable by Executive’s legal representatives.

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors. The Company shall require any successor to all or substantially all of the business
and/or assets of the Company, whether direct or indirect, by purchase, merger, consolidation,
acquisition of stock, or otherwise, to expressly assume and agree to perform this Agreement in the
same manner and to the same extent as the Company would be required to perform it if no such
succession had taken place.

10. Arbitration. Any dispute or controversy arising under, related to or in connection with
this Agreement shall be settled exclusively by arbitration before a single arbitrator in
Cincinnati, Ohio, in accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The arbitrator’s award shall be final and binding on all parties to this Agreement.
Judgment may be entered on an arbitrator’s award in any court having competent jurisdiction.

11. Integration. This Agreement supersedes and replaces any prior oral or written agreements
or understandings in respect of the matters addressed hereby.

12. Amendment. This Agreement may not be amended or modified otherwise than by a written
agreement executed by the parties hereto or their respective successors and legal representatives.

13. Severability. The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this Agreement.

14. Withholding. The Company may withhold from any amounts payable under this Agreement such
federal, state, local or foreign taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

15. Governing Law. This Agreement shall be governed by and construed in accordance with the
law of the State of Indiana without reference to principles of conflict of laws.

 

9

 

16. Attorney’s Fees. If any legal proceeding (whether in arbitration, at trial or on appeal)
is brought under or in connection with this Agreement, each party shall pay its own expenses,
including attorneys’ fees.

17. Term of Agreement. The term of this Agreement shall be one (1) year commencing on the date
hereof; provided however, that this Agreement shall be automatically renewed for successive
one-year terms commencing on each anniversary of the date of this Agreement unless the Company
shall have given notice of non-renewal to Executive at least 30 days prior to the scheduled
termination date; and further provided that notwithstanding the foregoing, this Agreement shall not
terminate (i) within three years after a Change in Control or (ii) during any period of time when a
transaction which would result in a Change in Control is pending or under consideration by the
Board. The termination of this Agreement shall not adversely affect any rights to which Executive
has become entitled prior to such termination. In addition, Section 5(a) shall survive the
termination of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
as of the day and year first above set forth.

	 	 	 	 	 	 	 
	 	 	HILL-ROM HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Title
	 	Patrick de Maynadier
	 

	 	 	 	 	 	Senior Vice President,
	 

	 	 	 	 	 	General Counsel and Secretary
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Executive

 

10

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