Document:

Exhibit 10.34

 

EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT
AGREEMENT (the “Agreement”) is made this 16 day of October 2013 (the “Effective Date”) by and between
Albany Molecular Research, Inc., a Delaware corporation (the “Company”), and Michael Luther, Ph.D. (the “Executive”).

 

WHEREAS, the
Executive is an officer and key employee of the Company; and

 

WHEREAS, the
parties hereto desire to assure that the Executive’s knowledge and familiarity with the business of the Company will continue
to be available to the Company after the date hereof.

 

NOW, THEREFORE,
in consideration of the mutual promises and covenants herein contained, the parties agree as follows:

 

1.          Employment.
Subject to the provisions of Section 6, the Company hereby employs the Executive, effective
on the Employment Date, and the Executive agrees to accept such employment on the Employment Date upon the terms and conditions
hereinafter set forth. The Employment Date is October 28, 2013. In the event that the Executive becomes an employee of the Company
on any date other than October 28, 2013, then the actual date of employment shall be considered the Employment Date hereunder.

 

2.          Term
of Employment. The term of the Executive’s employment pursuant to this Agreement shall commence on and as of the Employment
Date (the “Effective Date”) and shall remain in effect for a period of two (2) years from the Effective Date (the
“Term”). The Term shall be renewed automatically for periods of two (2) years (each a “Renewal Term”)
commencing at the second anniversary of the Effective Date and on each subsequent anniversary thereafter, unless notice that this
Agreement will not be extended is given by either the Executive or the Company not less than one-hundred eighty (180) days prior
to the expiration of the Term (as extended by any Renewal Term). The period during which the Executive serves as an employee of
the Company in accordance with and subject to the provisions of this Agreement is referred to in this Agreement as the “Term
of Employment.”

 

3.          Capacity.

 

(a)          Duties.
During the Term of Employment, the Executive shall report directly to the to the President and Chief Executive Officer or such
other senior executive officer as may be determined by the Board of Directors of the Company and (i) shall serve as an
executive officer of the Company with the title Senior Vice President, Discovery Services, (ii) shall perform such
duties and responsibilities as may be reasonably determined by the President and Chief Executive Officer and the Board of Directors
of the Company consistent with the Executive’s title and position, duties and responsibilities as an executive officer of
the Company as of the Effective Date; provided that such duties and responsibilities shall be within the general area of
the Executive’s experience and skills, (iii) upon the request of the Board of Directors of the Company, shall serve as an
officer and/or director of the Company and any of its subsidiaries or affiliates (provided that the Company shall indemnify
the Executive for liabilities incurred as such in accordance with its current practices to the fullest extent permitted by applicable
law); and (iv) shall render all services incident to the foregoing.

 

    	 

    	 

    

 

(b)          Extent
of Service. The Executive agrees to diligently serve the interests of the Company and shall devote substantially all of his
working time, attention, skill and energies to the advancement of the interests of the Company and its subsidiaries and affiliates
and the performance of his duties and responsibilities hereunder; provided that nothing in this Agreement shall be construed
as preventing the Executive from (i) investing the Executive’s assets in any entity in a manner not prohibited by Section
7 and in such form or manner as shall not require any material activities on the Executive’s part in connection with the
operations or affairs of the entities in which such investments are made, or (ii) engaging in religious, charitable or other community
or non-profit activities that do not impair the Executive’s ability to fulfill the Executive’s duties and responsibilities
under this Agreement.

 

4.          Compensation.

 

(a)          Salary.
During the Term of Employment, the Company shall pay the Executive a salary (the “Base Salary”) at an annual rate
as shall be determined from time to time by the Board of Directors of the Company or the Compensation Committee of the Board of
Directors consistent with the general policies and practices of the Company and subject to periodic review in accordance with
the policies and practices of the Company; provided, however, that in no event shall such rate per annum be less
than $310,000.00. Such salary shall be subject to withholding under applicable law and shall be payable in periodic installments
in accordance with the Company’s usual practice for its senior executives, as in effect from time to time.

 

(b)          Bonus.
Annually, the Company shall review the performance of the Company and of the Executive during the prior year, and the Company
may provide the Executive with additional compensation as a bonus in accordance with any bonus plan then in effect from time to
time for senior executives of the Company. Any such bonus plan shall have such terms as may be established in the sole discretion
of the Board of Directors of the Company or the Compensation Committee of the Board of Directors.

 

5.          Benefits.

 

(a)          Regular
Benefits. During the Term of Employment, the Executive shall be entitled to participate in any and all medical, dental, pension
and life insurance plans, disability income plans and other employee benefit plans as in effect from time to time for senior executives
of the Company. Such participation shall be subject to (i) the terms of the applicable plan documents, (ii) generally applicable
policies of the Company and (iii) the discretion of the Board of Directors of the Company or the administrative or other committee
provided for in, or contemplated by, such plan. Compliance with this Section 5(a) shall in no way create or be deemed to create
any obligation, express or implied, on the part of the Company or any subsidiary or affiliate of the Company with respect to the
continuation of any benefit or other plan or arrangement maintained as of or prior to the Effective Date or the creation and maintenance
of any particular benefit or other plan or arrangement at any time after the Effective Date.

 

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(b)          Reimbursement
of Expenses. The Company shall promptly reimburse the Executive for all reasonable business expenses incurred by the Executive
during the Term of Employment in accordance with the Company’s practices for senior executives of the Company, as in effect
from time to time.

 

(c)          Vacation.
During the Term of Employment, the Executive shall receive at least four (4) weeks paid vacation annually or such greater amount
as is in accordance with the Company’s practices for senior executives of the Company, as in effect from time to time.

 

(d)          New
Employment Benefits.         AMRI will pay Executive a new hire bonus
of $60,000, which shall be payable at the time that the bonuses are paid to the other executives of the Company in early 2014,
but no later than March 15, 2014 (the “New Hire Bonus”). Executive will also be eligible for additional bonus based
on performance during 2013 at the discretion of the Compensation Committee of the Company. In the event that Executive chooses
to relocate or is requested by the Company to relocate his primary residence within 12 months of the Effective Date, the Company
will provide relocation and temporary living assistance for Executive and family in connection with the relocation from Andover,
Massachusetts to the capital region of New York. The date that Executive relocates his primary residence will be called the “Relocation
Date.” The Company will cover reasonable expenses consistent with the AMRI Relocation Policy for Executives as will be specifically
determined at the time of relocation. These expenses will be reimbursed to Executive or directly paid as incurred, subject to
confirmation. All such reimbursed expenses, including the New Hire Bonus, and all relocation and temporary living expenses are
referred to herein as the “Relocation Expenses”.

 

(e)          Grant
of Company Equity. Effective on Employment Date, the Company will grant to Executive 20,000 shares of restricted stock and
non-qualified stock options to purchase 40,000 shares of the Company’s Common Stock, such restricted stock and stock options
to be granted pursuant to the Company’s 2008 Stock Option and Incentive Plan. Such restricted stock and stock options will
be evidenced by standard agreements to be entered into between Executive and the Company. The restricted stock and stock options
granted pursuant to this Section 5(e) will vest 25% per year on each anniversary of the date of grant. The shares of restricted
stock and stock options granted in this Section 5(e) are referred to herein as the New Hire Grant.

 

6.          Termination
of Employment. Notwithstanding the provisions of Section 2, the Executive’s employment under this Agreement shall terminate
under the following circumstances set forth in this Section 6.

 

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For purposes
of this Agreement, “Date of Termination” means (i) if the Executive’s employment is terminated by his
death as provided in Section 6(c), the date of his death; (ii) if the Executive’s employment is terminated due to his permanent
disability as provided in Section 6(c), the date on which notice of termination is given; (iii) if the Executive’s employment
is terminated by the Company without Cause under Section 6(e) or Section 6(g), sixty (60) days after the date on which notice
of termination is given; and (iv) if the Executive’s employment is terminated under Section 6(f), or for Good Reason under
Section 6(g), the date on which the applicable cure period expires. In the event that Executive’s employment terminates
at any time from the date hereof to the date that is 12 months following the payment of the New Hire Bonus and such termination
is pursuant to Section 6(b) or 6(d); then within 30 days of the Date of Termination Executive shall repay the New Hire Bonus if
such has been paid to Executive and, if applicable, the Relocation Expenses, in full to the Company.

 

(a)          Mutual
Consent. The Executive’s employment under this Agreement may be terminated at any time by the mutual consent of the
Executive and the Company on such terms as both parties shall mutually agree.

 

(b)          Termination
by the Company for Cause. The Executive’s employment under this Agreement may be terminated by the Company for Cause
at any time upon written notice to the Executive without further liability on the part of the Company. For purposes of this Agreement,
a termination shall be for Cause if:

 

(i)          the
Executive shall commit an act of fraud, embezzlement, misappropriation or breach of fiduciary duty against the Company or any
of its subsidiaries or affiliates or shall be convicted by a court of competent jurisdiction or shall plead guilty or nolo contendere
to any felony or any crime involving moral turpitude;

 

(ii)         the
Executive shall commit a material breach of any of the covenants, terms or provisions of Section 7 or 8 hereof which breach has
not been cured within fifteen (15) days after delivery to the Executive by the Company of written notice thereof;

 

(iii)        the
Executive shall commit a material breach of any of the covenants, terms or provisions hereof (other than pursuant to Section 7
or 8 hereof) which breach has not been remedied within thirty (30) days after delivery to the Executive by the Company of written
notice thereof; or

 

(iv)        the
Executive shall have disobeyed reasonable written instructions from the Company’s Board of Directors, Compensation Committee
or other appropriate governing committee which are consistent with the terms and conditions of this Agreement or shall have deliberately,
willfully, substantially and continuously failed to perform the Executive’s duties hereunder, after written notice and under
circumstances effectively constituting a voluntary resignation of the Executive’s position with the Company.

 

Upon termination
for Cause as provided in this Section 6(b), all obligations of the Company under this Agreement shall thereupon immediately terminate
other than any obligations with respect to earned but unpaid Base Salary. The Company shall have any and all rights and remedies
under this Agreement and applicable law.

 

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(c)          Death;
Disability. The Executive’s employment under this Agreement may be terminated by the Company upon the earlier of death
or permanent disability (as defined below) of the Executive continuing for a period of one hundred eighty (180) days. Upon any
such termination of the Executive’s employment, all obligations of the Company under this Agreement shall thereupon immediately
terminate other than any obligations with respect to (i) earned but unpaid salary through the Date of Termination, (ii) bonus
payments with respect to the calendar year within which such termination occurred on the basis of and to the extent contemplated
in any bonus plan then in effect with respect to senior executive officers of the Company, pro-rated on the basis of the number
of days of the Executive’s actual employment hereunder during such calendar year through the Date of Termination, and (iii)
in the case of permanent disability, continuation at the Company’s expense of health insurance benefits (medical and dental)
until the first anniversary of the Date of Termination to the extent permitted under the Company’s group health insurance
policy. As used herein, the term “permanent disability” or “permanently disabled” means the inability
of the Executive, by reason of injury, illness or other similar cause, after reasonable accommodation by the Company, to perform
a major part of his duties and responsibilities in connection with the conduct of the business and affairs of the Company. The
Company shall provide written notice to the Executive of the termination of his employment hereunder due to permanent disability.

 

(d)          Voluntary
Termination by the Executive. At any time during the Term of Employment, the Executive may terminate his employment under
this Agreement upon sixty (60) days’ prior written notice to the Company. Upon termination by the Executive as provided
in this Section 6(d), all obligations of the Company under this Agreement shall thereupon immediately terminate.

 

(e)          Termination
by the Company Without Cause. The Executive’s employment under this Agreement may be terminated by the Company at any
time without Cause by the Company upon sixty (60) days’ prior written notice to the Executive. Any termination by the Company
of the Executive’s employment under this Agreement which does not constitute a termination for Cause under Section 6(b)
and is not a termination on account of death or disability under Section 6(c) shall be deemed a termination without Cause. Upon
any such termination of the Executive’s employment, all obligations of the Company under this Agreement shall thereupon
immediately terminate other than any obligations with respect to earned but unpaid Base Salary and bonus under Section 4. In addition,
subject to the Executive signing a general release of claims in a form and manner satisfactory to the Company and the lapse of
any statutory revocation period, the Company shall continue to pay the Executive his Base Salary at the rate then in effect pursuant
to Section 4(a) for a period of one (1) year from the Date of Termination and shall pay to the Executive in monthly installments
over the one (1) year period, an amount equal to the Executive’s cash bonus, if any, received in respect of the year immediately
preceding the year of termination pursuant to Section 4(b) beginning with the first payroll date that begins thirty (30) days
after the Date of Termination. For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
each monthly payment shall be considered a separate payment. The Company shall also pay 100% of the costs to provide up to twelve
(12) months of outplacement support services at a level appropriate for the Executive’s title and responsibility and provide
the Executive with health and dental insurance continuation at a level consistent with the level and type the Executive had in
place at the time of termination for a period of twelve (12) months from the Date of Termination. In
addition, on or prior to the Date of Termination, Executive will become fully vested in any unvested shares or options granted
as part of the New Hire Grant.

 

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(f)          Termination
by the Executive upon Company Breach. The Executive shall have the right to terminate his employment hereunder upon written
notice to the Company in the event of (i) a material diminution in the nature or scope of the powers, duties or responsibilities
of the Executive or (ii) a breach by the Company of any of its material obligations hereunder, in each case after the Executive
has given written notice to the Company specifying such default by the Company within sixty (60) days of the occurrence of the
default and giving the Company a reasonable time, not less than thirty (30) days, to conform its performance to its obligations
hereunder. Upon any such termination of the Executive’s employment, all obligations of the Company under this Agreement
shall thereupon immediately terminate other than any obligations with respect to earned but unpaid Base Salary and bonus under
Section 4. In addition, subject to the Executive signing a general release of claims in a form and manner satisfactory to the
Company and the lapse of any statutory revocation period, the Company shall continue to pay the Executive his Base Salary at the
rate then in effect pursuant to Section 4(a) for a period of one (1) year from the Date of Termination and shall pay to the Executive
in monthly installments over the one (1) year period, an amount equal to the Executive’s cash bonus, if any, received in
respect of the year immediately preceding the year of termination pursuant to Section 4(b) beginning with the first payroll date
that begins thirty (30) days after the Date of Termination. For purposes of Section 409A of the Code, each monthly payment shall
be considered a separate payment. The Company shall also pay 100% of the costs to provide up to twelve (12) months of outplacement
support services at a level appropriate for the Executive’s title and responsibility and provide the Executive with health
and dental insurance continuation at a level consistent with the level and type the Executive had in place at the time of termination
for a period of twelve (12) months from the Date of Termination. In addition, on or prior to
the Date of Termination, Executive will become fully vested in any unvested shares or options granted as part of the New Hire
Grant.  

 

(g)          Termination
Pursuant to a Change of Control. If there is a Change of Control, as defined below, during the Term of Employment, the provisions
of this Section 6(g) shall apply and shall continue to apply throughout the remainder of the Term (as extended by any Renewal
Term). Upon a Change of Control, the Executive will become fully vested in any outstanding stock options, Restricted Stock or
other stock grants awarded and become fully vested in all Company contributions made to the Executive’s 401(k), Profit Sharing
or other retirement account(s). In addition, within thirty (30) days of the Change of Control, the Company shall pay to the Executive
a lump sum equal to the Executive’s pro rata target cash bonus for the year in which the Change of Control occurred (as
such may be set forth in the Company’s bonus plan for such year and calculated assuming target achievement of corporate
and personal goals); such pro rata amount to be determined based on the actual date of the closing of such Change of Control transaction.

 

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If, within two
(2) years following a Change of Control, the Executive’s employment is terminated by the Company without Cause (in accordance
with Section 5(e) above) or by the Executive for “Good Reason” (as defined in Section 6(g)(ii) below), in lieu of
any severance and other benefits payable under Section 6(e) or Section 6(f), subject to the Executive signing a general release
of claims in a form and manner satisfactory to the Company and the lapse of any statutory revocation period, the Company shall
pay to the Executive (or the Executive’s estate, if applicable) a lump sum amount equal to 1.5 times the sum of (x) the
Executive’s Base Salary at the rate then in effect pursuant to Section 4(a), plus (y) an amount equal to the Executive’s
cash bonus, if any, received in respect of the year immediately preceding the year of termination pursuant to Section 4(b) within
thirty (30) days of the Date of Termination. Notwithstanding the foregoing, to the extent the cash severance payment to the Executive
is considered deferred compensation subject to Section 409A of the Code, and if the Change of Control does not constitute a “change
in control event” within the meaning of Section 409A of the Code, such cash severance shall be payable in installments over
the same period as provided in Section 6(e). The Company shall also pay 100% of the costs to provide up to twelve (12) months
of outplacement support services at a level appropriate for the Executive’s title and responsibility and provide the Executive
with health and dental insurance continuation at a level consistent with the level and type the Executive had in place at the
time of termination for a period of twelve (12) months from the Date of Termination.

 

(i)          “Change
of Control” shall mean the occurrence of any one of the following events: (A) the
sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (B) a
merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for securities
of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction
do not own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction,
or (C) the sale of all of the Stock of the Company to an unrelated person or entity.

 

(ii)         “Good
Reason” shall mean the occurrence of any of the following:

 

(A)         
a material diminution in the nature or scope of the powers, duties or responsibilities of the Executive; or

 

(B)         a
breach by the Company of any of its material obligations hereunder.

 

(iii)        The
Executive shall provide the Company with reasonable notice and an opportunity to cure any of the events listed in Section 6(g)(ii)
within sixty (60) days of the occurrence of the event and shall not be entitled to compensation pursuant to this Section 6(g)
unless the Company fails to cure within a reasonable period of not less than thirty (30) days.

 

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(h)          Additional
Limitation. Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation,
payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the
applicable regulations thereunder (the “Severance Payments”), would be subject to the excise tax imposed by Section
4999 of the Code, the following provisions shall apply:

 

(A)
          if
the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and
employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount,
are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full amount of Severance Payments.

 

(B)          if
the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of
(1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Severance
Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not below zero) to the
extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount. In such event, the Severance
Payments shall be reduced in the following order: (i) cash payments not subject to Section 409A of the Code; (ii) cash payments
subject to Section 409A of the Code; (iii) equity-based payments and acceleration; and (iv) non-cash forms of benefits. To the
extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological
order.

 

For the purposes
of this Section 6(h) “Threshold Amount” shall mean three (3) times the Executive’s “base amount”
within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise
Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive
with respect to such excise tax.

 

The determination
as to which of the alternative provisions of this Section 6(h) shall apply to the Executive shall be made by a nationally recognized
accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations
both to the Company and the Executive within fifteen (15) business days of the Date of Termination, if applicable, or at such
earlier time as is reasonably requested by the Company or the Executive. For purposes of determining which of the alternative
provisions of this Section 6(g)(iii) above shall apply, the Executive shall be deemed to pay federal income taxes at the highest
marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made,
and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s
residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction
of such state and local taxes. Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

 

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(i)          No
Mitigation. Without regard to the reason for the termination of the Executive’s employment hereunder, the Executive
shall be under no obligation to mitigate damages with respect to such termination under any circumstances and in the event the
Executive is employed or receives income from any other source, there shall be no offset against the amounts due from the Company
hereunder.

 

(j)          Section
409A.

 

(i)          Anything
in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the
meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled
to under this Agreement would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to
Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be
payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s
separation from service, or (B) the Executive’s death. If any such delayed cash payment is otherwise payable on an installment
basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month
period but for the application of this provision, and the balance of the installments shall be payable in accordance with their
original schedule. Any such delayed cash payment shall earn interest at an annual rate equal to the prime rate reported by The
Wall Street Journal as of the date of separation from service, from such date of separation from service until the payment.

 

(ii)         The
parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner
so that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as
reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules
and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(iii)        To
the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination
of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service”.
The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions
set forth in Treasury Regulation Section 1.409A-1(h).

 

(iv)        The
Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an
exemption from, or the conditions of, such Section.

 

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7.          Non-Competition
and No Solicitation.

 

(a)          Because
the Executive’s services to the Company are special and because the Executive has access to the Company’s confidential
information, during the Term of Employment and for a period of twelve (12) months following the termination, the Executive shall
not, without the express written consent of the Company, directly or indirectly, engage, participate, invest in, be employed by
or assist, whether as owner, part-owner, shareholder, partner, director, officer, trustee, employee, agent or consultant, or in
any other capacity, any Person (as hereinafter defined) other than the Company and its affiliates in the Designated Industry (as
hereinafter defined); provided, however, that nothing herein shall be construed as preventing the Executive from making passive
investments in a Person in the Designated Industry if the securities of such Person are publicly traded and such investment constitutes
less than one percent (1%) of the outstanding shares of capital stock or comparable equity interests of such Person.

 

(b)          For
purposes of this Agreement, the following terms have the following meanings:

“Person”
means an individual, a corporation, an association, a partnership, a limited liability company, an estate, a trust and any other
entity or organization; and

 

“Designated
Industry” means the business of providing research and development services to pharmaceutical and biotechnology companies
involved in drug development and discovery and any and all activities related thereto, including, without limitation, biological
testing and biological research services, medicinal chemistry, chemical development, biocatalysis, analytical chemistry services
and small-scale manufacturing and any other business conducted by the Company during the Executive’s employment with the
Company.

 

(c)          For
a period of twelve (12) months following the termination of this Agreement for any reason, the Executive shall not, directly or
indirectly, alone or as a member of any partnership or limited liability company or entity, or as an officer, director, shareholder,
or employee of any corporation or entity (a) solicit or otherwise encourage any employee or independent contractor of the Company
to terminate his/her relationship with the Company, or (b) recruit, hire or solicit for employment or for engagement as an independent
contractor, any person who is or was employed by the Company at any time during the Executive’s employment with the Company.
This paragraph shall not apply to persons whose employment and/or retention with the Company has been terminated for a period
of twelve (12) months or longer.

 

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8.          Confidentiality.
In the course of performing services hereunder and otherwise, the Executive has had, and it is anticipated that the Executive
will from time to time have, access to confidential records, data, customer lists, trade secrets, technology and similar confidential
information owned or used in the course of business by the Company and its subsidiaries and affiliates (the “Confidential
Information”). The Executive agrees (i) to hold the Confidential Information in strict confidence, (ii) not to disclose
the Confidential Information to any Person (other than in the regular business of the Company), and (iii) not to use, directly
or indirectly, any of the Confidential Information for any competitive or commercial purpose; provided, however, that the limitations
set forth above shall not apply to any Confidential Information which (A) is then generally known to the public, (B) became or
becomes generally known to the public through no fault of the Executive, or (C) is disclosed in accordance with an order of a
court of competent jurisdiction or applicable law. Upon termination of the Executive’s employment with the Company, all
data, memoranda, customer lists, notes, programs and other papers and items, and reproductions thereof relating to the foregoing
matters in the Executive’s possession or control, shall be returned to the Company and remain in its possession. This Section
8 shall survive the termination of this Agreement for any reason.

 

9.          Conflicting
Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations
hereunder will not breach or be in conflict with any other agreement to which he is a party or is bound, and that he is not now
subject to any covenants which would affect the performance of his obligations hereunder. As of the Effective Date, the Executive
is not performing any other duties for, and is not a party to any similar agreement with, any Person competing with the Company
or any of its affiliates.

 

10.         Severability.
In case any of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, any such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but
this Agreement shall be construed as if such invalid, illegal or unenforceable provision had been limited or modified (consistent
with its general intent) to the extent necessary to make it valid, legal and enforceable, or if it shall not be possible to so
limit or modify such invalid, illegal or unenforceable provision or part of a provision, this Agreement shall be construed as
if such invalid, illegal or unenforceable provision or part of a provision had never been contained in this Agreement.

 

11.         Litigation
and Regulatory Cooperation. During and after the Executive’s employment, the Executive shall cooperate fully with the
Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against
or on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company.
The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available
to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient
times. During and after the Executive’s employment, the Executive also shall cooperate fully with the Company in connection
with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates
to events or occurrences that transpired while the Executive was employed by the Company. The Company shall reimburse the Executive
for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance of obligations pursuant
to this Section 11. This Section 11 shall survive the termination of this Agreement for any reason.

 

    	11

    	 

    

 

12.         Arbitration
of Disputes. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by
arbitration in Albany, New York, in accordance with the rules of the American Arbitration Association then in effect. Judgment
may be entered in any court having jurisdiction. In the event that the Company terminates the Executive’s employment for
cause under Section 6(b) and the Executive contends that cause did not exist, then the Company’s only obligation shall be
to submit such claim to arbitration and the only issue before the arbitrator will be whether the Executive was in fact terminated
for cause. If the arbitrator determines that the Executive was not terminated for cause by the Company, then the only remedies
that the arbitrator may award are (i) payment of amounts which would have been payable if the Executive’s employment had
been terminated under Section 6(e), (ii) the costs of arbitration, (iii) the Executive’s attorneys’ fees, and (iv)
all rights and benefits granted or in effect with respect to the Executive under the Company’s stock option plans and agreements
with the Executive pursuant thereto, with the vesting and exercise of any stock options and the forfeit ability of any stock-based
grants held by the Executive to be governed by the terms of such plans and the related agreements between the Executive and the
Company. If the arbitrator finds that the Executive’s employment was terminated for cause, the arbitrator will be without
authority to award the Executive anything, and the parties will each be responsible for their own attorneys’ fees, and they
will divide the costs of arbitration equally. Furthermore, should a dispute occur concerning the Executive’s mental or physical
capacity as described in Section 6(c), a doctor selected by the Executive and a doctor selected by the Company shall be entitled
to examine the Executive. If the opinion of the Company’s doctor and the Executive’s doctor conflict, the Company’s
doctor and the Executive’s doctor shall together agree upon a third doctor, whose opinion shall be binding. This Section
12 shall survive the termination of this Agreement for any reason.

 

13.         Specific
Performance. Notwithstanding Section 12 hereof, it is specifically understood and agreed that any breach of the provisions
of this Agreement, including, without limitation, Sections 7 and 8 hereof, by the Executive is likely to result in irreparable
injury to the Company and its subsidiaries and affiliates, that the remedy at law alone will be inadequate remedy for such breach
and that, in addition to any other remedy it may have, the Company shall be entitled to enforce the specific performance of this
Agreement by the Executive and to seek both temporary and permanent injunctive relief (to the extent permitted by law), without
the necessity of proving actual damages. To the extent that any court action is permitted consistent with or to enforce Section
7 or 8 of this Agreement, the parties hereby agree to the sole and exclusive jurisdiction of the Supreme Court of the State of
New York (Albany County) and the United States District Court for the Northern District of New York (City of Albany). Accordingly,
with respect to any such court action, the Executive (i) submits to the personal jurisdiction of such courts, (ii) consents to
service of process, and (iii) waives any other requirement (whether imposed by statute, rule of court or otherwise) with respect
to personal jurisdiction or service of process.

 

14.         Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
(i) when delivered by hand, (ii) when transmitted by facsimile and receipt is acknowledged, or (iii) if mailed by certified or
registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

 

    	12

    	 

    

 

To the Company:

 

Albany Molecular
Research, Inc.

26 Corporate Circle

Albany, New York
12212-5154

Facsimile: (518)
867-4375

Attention:
Board of Directors

 

To the Executive, at the
address on file with the Company

 

or to such other address of which
any party may notify the other parties as provided above. Notices shall be effective as of the date of such delivery or mailing.

 

15.         Amendment;
Waiver. This Agreement shall not be amended, modified or discharged in whole or in part except by an Agreement in writing
signed by both of the parties hereto. The failure of either of the parties to require the performance of a term or obligation
or to exercise any right under this Agreement or the waiver of any breach hereunder shall not prevent subsequent enforcement of
such term or obligation or exercise of such right or the enforcement at any time of any other right hereunder or be deemed a waiver
of any subsequent breach of the provision so breached, or of any other breach hereunder.

 

16.         Successors
and Assigns. This Agreement shall inure to the benefit of successors of the Company by way of merger, consolidation or transfer
of all or substantially all of the assets of the Company, and may not be assigned by the Executive. The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the
Company would be required to perform it if no succession had taken place. Failure of the Company to obtain an assumption of this
Agreement at or prior to the effectiveness of any succession shall be a material breach of this Agreement.

 

17.         Entire
Agreement. This Agreement constitutes the entire agreement between the parties concerning the subjects hereof and supersedes
all prior understandings and agreements between the parties relating to the subject matter hereof.  

 

18.         Governing
Law. This Agreement shall be construed and regulated in all respects under the laws of the State of New York.

 

19.         Counterparts.
This Agreement may be executed in counterparts, each of which when so executed and delivered shall be taken to be an original,
but such counterparts shall together constitute one and the same document.

 

[Remainder of
Page Intentionally Left Blank]

 

    	13

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the day and year first above written.

 

	 	ALBANY
    MOLECULAR RESEARCH, INC.
	 	 
	 	By:
    	/s/
    Thomas E. D’Ambra
	 	 
	 	EXECUTIVE:
	 	 
	 	By: 	/s/ Michael Luther
	 	Michael
    Luther, Ph.D.

 

    	14Exhibit 10.43

ALBANY MOLECULAR RESEARCH, INC. 

 

SECOND AMENDED 1998 EMPLOYEE STOCK PURCHASE
PLAN

 

The purpose of the Albany Molecular Research,
Inc. 1998 Employee Stock Purchase Plan ("the Plan") is to provide eligible employees of Albany Molecular Research, Inc.
(the "Company") and its subsidiaries with opportunities to purchase shares of the Company's common stock, par value $.01
per share (the "Common Stock"). One Million Four Hundred Thousand (1,400,000) shares of Common Stock in the aggregate
have been approved and reserved for this purpose. The Plan is intended to constitute an "employee stock purchase plan"
within the meaning of Section 423(b) of the Internal Revenue Code of 1986, as amended (the "Code"), and shall be interpreted
in accordance with that intent.

 

		1.	Administration. The Plan will be administered by the Company's Board of Directors (the "Board")
or by a committee appointed by the Board for such purpose (the "Committee"). The Board or the Committee has authority
to make rules and regulations for the administration of the Plan, and its interpretations and decisions with regard thereto shall
be final and conclusive. No member of the Board or the Committee shall be liable for any action or determination with respect to
the Plan or any option granted hereunder.

 

		2.	Offerings. The Company will make one or more offerings to eligible employees to purchase
the Common Stock under the Plan ("Offerings"). The initial Offering will begin on January 1, 1999 and will end on June
30, 1999. Thereafter, an Offering will begin on the first business day occurring on or after each January 1 and July 1 and will
end on the last business day occurring on or before the following June 30 and December 31, respectively. The Committee may, in
its discretion, choose an Offering period of six months or less for each of the Offerings and choose a different Offering period
for each Offering.

 

		3.	Eligibility. All employees of the Company (including employees who are also directors of
the Company) and all employees of each Designated Subsidiary (as defined in Section 11) are eligible to participate in any one
or more of the Offerings under the Plan, provided that as of the first day of the applicable Offering (the "Offering Date")
they are customarily employed by the Company or a Designated Subsidiary for more than twenty (20) hours a week.

 

		4.	Participation. An employee eligible on any Offering Date may participate in such Offering
by submitting an enrollment form to his or her appropriate payroll location at least fifteen (15) business days before the Offering
Date (or by such other deadline as shall be established for the Offering). The form will (a) state a whole percentage to be deducted
from such employee's Compensation (as defined in Section 11) per pay period , (b) authorize the purchase of Common Stock for such
employee in each Offering in accordance with the terms of the Plan and (c) specify the exact name or names in which shares of Common
Stock purchased for such employee are to be issued pursuant to Section 10. An employee who does not enroll in accordance with these
procedures will be deemed to have waived the right to participate. Unless an employee files a new enrollment form or withdraws
from the Plan, such employee's deductions and purchases will continue at the same percentage of Compensation for future Offerings,
provided such employee remains eligible. Notwithstanding the foregoing, participation in the Plan will neither be permitted nor
be denied contrary to the requirements of the Code.

 

		5.	Employee Contributions. Each eligible employee may authorize payroll deductions at a minimum
of one percent (1%) up to a maximum of ten percent (10%) of his or her Compensation for each pay period. The Company will maintain
book accounts showing the amount of payroll deductions made by each participating employee for each Offering. No interest will
accrue or be paid on payroll deductions.

 

		6.	Deduction Changes. An employee may not increase his or her payroll deduction during any
Offering, but may decrease his or her payroll deduction for the remainder of the Offering. An employee may also terminate his or
her payroll deduction for the remainder of the Offering, either with or without withdrawing from the Offering under Section 7.
To reduce or terminate his or her payroll deduction (without withdrawing from the Offering), an employee must submit a new enrollment
form at least fifteen (15) business days (or such shorter period as shall be established) before the payroll date on which the
change becomes effective. Subject to the requirements of Sections 4 and 5, an employee may either increase or decrease his or her
payroll deduction with respect to the next Offering by filing a new enrollment form at least fifteen (15) business days before
the next Offering Date (or by such other deadline as shall be established for the Offering).

 

    	 

    	 

    

 

		7.	Withdrawal. An employee may withdraw from participation in the Plan by delivering a written
notice of withdrawal to his or her appropriate payroll location. The employee's withdrawal will be effective as of the next business
day. Following an employee's withdrawal, the Company will promptly refund such employee's entire account balance under the Plan
(after payment for any Common Stock purchased before the effective date of withdrawal). Partial withdrawals are not permitted.
The employee may not begin participation again during the remainder of the Offering, but may enroll in a subsequent Offering in
accordance with Section 4.

 

		8.	Grant of Options. On each Offering Date, the Company will grant to each eligible employee
who is then a participant in the Plan an option ("Option") to purchase on the last day of such Offering (the "Exercise
Date"), at the Option Price hereinafter provided for, a maximum of two thousand (2,000) shares of Common Stock reserved for
the purposes of the Plan, or such other maximum number of shares as shall have been established by the Board or the Committee in
advance of the offering. The purchase price for each share purchased under such Option (the "Option Price") will be 85%
of the Fair Market Value of the Common Stock on the Offering Date or the Exercise Date, whichever is less. Notwithstanding the
foregoing, no employee may be granted an option hereunder if such employee, immediately after the option was granted, would be
treated as owning stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock
of the Company or any Parent or Subsidiary (as defined in Section 11).

 

For purposes of the preceding
sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of an employee, and
all stock which the employee has a contractual right to purchase shall be treated as stock owned by the employee. In addition,
no employee may be granted an Option which permits his or her rights to purchase stock under the Plan, and any other employee stock
purchase plan of the Company and its Parents and Subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value
of such stock (determined on the option grant date or dates) for each calendar year in which the Option is outstanding at any time.
The purpose of the limitation in the preceding sentence is to comply with Section 423(b)(8) of the Code.

 

		9.	Exercise of Option and Purchase of Shares. Each employee who continues to be a participant
in the Plan on the Exercise Date shall be deemed to have exercised his or her Option on such date and shall acquire from the Company
such number of whole shares of Common Stock reserved for the purpose of the Plan as his or her accumulated payroll deductions on
such date will purchase at the Option Price, subject to any other limitations contained in the Plan. Any amount remaining in an
employee's account at the end of an Offering solely by reason of the inability to purchase a fractional share will be carried forward
to the next Offering; any other balance remaining in an employee's account at the end of an Offering will be refunded to the employee
promptly.

 

		10.	Issuance of Certificates. Certificates representing shares of Common Stock purchased under
the Plan may be issued only in the name of the employee, in the name of the employee and another person of legal age as joint tenants
with rights of survivorship, or in the name of a broker authorized by the employee to be his or her nominee for such purpose.

 

		11.	Definitions. The term "Compensation" means the amount of total cash compensation,
prior to salary reduction pursuant to either Section 125 or 401(k) of the Code, including base pay, overtime, commissions and bonuses,
but excluding allowances and reimbursements for expenses such as relocation allowances or travel expenses, income or gains on the
exercise of Company stock options, and similar items.

 

    	 

    	 

    

 

The term "Designated Subsidiary"
means any present or future Subsidiary (as defined below) that has been designated by the Board or the Committee to participate
in the Plan. The Board or the Committee may so designate any Subsidiary, or revoke any such designation, at any time and from time
to time, either before or after the Plan is approved by the stockholders.

 

The term "Fair Market Value
of the Common Stock" means (i) if the Common Stock is admitted to trading on a national securities exchange or the National
Association of Securities Dealers National Market System, the closing price reported for the Common Stock on such exchange or system
for such date or, if no sales were reported for such date, for the last date preceding such date for which a sale was reported,
or (ii) if clause (i) does not apply but the Common Stock is admitted to quotation on the National Association of Securities Dealers
Automated Quotation System ("NASDAQ"), the average of the highest bid and lowest asked prices of the Common Stock reported
on NASDAQ for such date or, if no bid and asked prices were reported for such date, for the last day preceding such date for which
such prices were reported.

 

The term "Parent" means
a "parent corporation" with respect to the Company, as defined in Section 424(e) of the Code. The term "Subsidiary"
means a "subsidiary corporation" with respect to the Company, as defined in Section 424(f) of the Code.

 

		12.	Rights on Termination of Employment. If a participating employee's employment terminates
for any reason before the Exercise Date for any Offering, no payroll deduction will be taken from any pay due and owing to such
employee and the balance in such employee's account will be paid to such employee or, in the case of death, to such employee's
designated beneficiary as if such employee had withdrawn from the Plan under Section 7. An employee will be deemed to have terminated
employment, for this purpose, if the corporation that employs such employee, having been a Designated Subsidiary, ceases to be
a Subsidiary, or if such employee is transferred to any corporation other than the Company or a Designated Subsidiary.

 

		13.	Special Rules. Notwithstanding anything herein to the contrary, the Board or the Committee
may adopt special rules applicable to the employees of a particular Designated Subsidiary, whenever the Board or the Committee
determines that such rules are necessary or appropriate for the implementation of the Plan in a jurisdiction where such Designated
Subsidiary has employees; provided that such rules are consistent with the requirements of Section 423(b) of the Code. Such special
rules may include (by way of example, but not by way of limitation) the establishment of a method for employees of a given Designated
Subsidiary to fund the purchase of shares other than by payroll deduction, if the payroll deduction method is prohibited by local
law or is otherwise impracticable. Any special rules established pursuant to this Section 13 shall, to the extent possible, result
in the employees subject to such rules having substantially the same rights as other participants in the Plan.

 

		14.	Optionees Not Stockholders. Neither the granting of an Option to an employee nor the deductions
from his or her pay shall constitute such employee a holder of the shares of Common Stock covered by an Option under the Plan until
such shares have been purchased by and issued to such employee.

 

		15.	Rights Not Transferable. Rights under the Plan are not transferable by a participating employee
other than by will or the laws of descent and distribution, and are exercisable during the employee's lifetime only by the employee.

 

		16.	Application of Funds. All funds received or held by the Company under the Plan may be combined
with other corporate funds and may be used for any corporate purpose.

 

		17.	Adjustment in Case of Changes Affecting Common Stock.
In the event of a subdivision of outstanding shares of Common Stock, or the payment of a dividend in Common Stock, the number
of shares approved for the Plan, and the share limitation set forth in Section 8, shall be increased proportionately, and such
other adjustment shall be made as may be deemed equitable by the Board or the Committee. In the event of any other change affecting
the Common Stock, such adjustment shall be made as may be deemed equitable by the Board or the Committee to give proper effect
to such event.

 

    	 

    	 

    

 

 

		18.	Amendment of the Plan. The Board or the Committee may at any time, and from time to time,
amend the Plan in any respect, except that without the approval, within twelve (12) months of such Board or Committee action, by
the holders of a majority of the shares of stock of the Company present or represented and entitled to vote at a meeting of stockholders,
no amendment shall be made increasing the number of shares approved for the Plan or making any other change that would require
stockholder approval in order for the Plan, as amended, to qualify as an "employee stock purchase plan" under Section
423(b) of the Code.

 

		19.	Insufficient Shares. If the total number of shares of Common Stock that would otherwise
be purchased on any Exercise Date plus the number of shares purchased under previous Offerings under the Plan exceeds the maximum
number of shares issuable under the Plan, the shares then available shall be apportioned among participants in proportion to the
amount of payroll deductions accumulated on behalf of each participant that would otherwise be used to purchase Common Stock on
such Exercise Date.

 

		20.	Termination of the Plan. The Plan may be terminated at any time by the Board or the Committee.
Upon termination of the Plan, all amounts in the accounts of participating employees shall be promptly refunded.

 

		21.	Governmental Regulations. The Company's obligation to sell and deliver Common Stock under
the Plan is subject to obtaining all governmental approvals required in connection with the authorization, issuance, or sale of
such stock.

 

The Plan shall be governed by
Delaware law except to the extent that such law is preempted by federal law.

 

		22.	Issuance of Shares. Shares may be issued upon exercise of an Option from authorized but
unissued Common Stock, from shares held in the treasury of the Company, or from any other proper source.

 

		23.	Tax Withholding. Participation in the Plan is subject to any required tax withholding on
income of the participant in connection with the Plan. Each employee agrees, by entering the Plan, that the Company and its Subsidiaries
shall have the right to deduct any such taxes from any payment of any kind otherwise due to the employee, including shares issuable
under the Plan.

 

		24.	Notification Upon Sale of Shares. Each employee
agrees, by entering the Plan, to give the Company prompt notice of any disposition of shares purchased under the Plan where such
disposition occurs within two years after the date of grant of the Option pursuant to which such shares were purchased.

 

		25.	Effective Date and Approval of Stockholders The
Plan shall take effect on the first day of the Company's initial public offering, subject to approval by the holders of a majority
of the shares of stock of the Company present or represented and entitled to vote at a meeting of stockholders, which approval
must occur within twelve (12) months of the adoption of the Plan by the Board.

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