Document:

Blueprint

 

Exhibit 10.02

 

NONQUALIFIED STOCK OPTION AGREEMENT

PURSUANT TO THE

FREEDOM HOLDING CORP. 2018 EQUITY INCENTIVE PLAN

 

 

THIS AGREEMENT is made as of ________
      ,
20__, between Freedom Holding Corp., a Nevada corporation (the
“Company”),
and ____________________ (the “Optionee”).

 

WHEREAS, the Company has adopted the Freedom
Holding Corp. 2018 Equity Incentive Plan (the
“Plan”)
in order to provide additional incentive to certain employees,
consultants, directors and officers of the Company and its
Subsidiaries; and

 

WHEREAS, the Board has determined to award to the
Optionee the right and option to purchase shares of the
Company’s Common Stock, par value $0.001 per share (the
“Common
Stock”) subject to
restrictions stated herein (the “Option”)
to encourage the Optionee’s efforts toward the continuing
success of the Company.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.

Nonqualified Stock Option

 

The Option is not intended to qualify as an
incentive stock option under the provisions of Section 422 of the
Internal Revenue Code of 1986, as amended, or its predecessor (the
“Code”).

 

2.

Grant of Nonqualified
Stock Option.

 

The
Company hereby awards to Optionee an option to purchase ________
shares of Common Stock of the Company (the “Award”) on
the following terms:

 

2.1 ____________
__, 20__, is the date of grant of the Option
(“Date of
Award”).

 

2.2 The
purchase price of the shares of Common Stock subject to the Option
shall be $__.__ per share (the “Exercise
Price”).

 

3. Restrictions on
Exercise

 

Subject
to the Optionee’s continued employment with the Company or
its Subsidiaries, the Option shall be exercisable as
follows:

 

3.1         One-______
(1/_) of the shares of Common Stock issued subject to the Option
(rounded down to the nearest whole Share, if necessary) shall
become exercisable on each of the first _______ (_) anniversaries
of the Date of Grant.

 

 

-1-

 

 

4. Effect of Certain
Terminations of Employment.

 

Notwithstanding Section 3, in the event of (i) the
termination of the Optionee’s employment with the Company or
its Subsidiaries (A) as a result of the Optionee’s death (B)
by the Company due to the Optionee’s total and permanent
disability, as determined by the Board (“Disability”),
or (C) by the Company not for cause, or (ii) the occurrence of a
Corporate Control (as defined in the Plan), the Option shall be
deemed to be fully (100%) vested and exercisable as of immediately
prior to the Optionee’s death, Disability, termination by the
Company not for cause, or the Corporate Change.

 

5. Term of
Option

 

The
unexercised portion of the Option shall automatically and without
notice terminate and become null and void at the earlier of (a) the
tenth anniversary of the Date of Grant and (b) the earliest
applicable time specified in Section 6.

 

6.
Termination of the
Option

 

Any
unexercised portion of the Option shall automatically and without
notice terminate and become null and void at the time of the
earliest to occur of the following:

 

6.1         The
termination of the Optionee’s employment with the Company or
its Subsidiaries if the Optionee’s employment is terminated
by the Company or its Subsidiaries for cause or by Optionee for any
reason. For purposes of this Agreement, “cause” shall
mean, (i) on account of fraud, embezzlement or other unlawful or
tortious conduct, whether or not involving or against the Company
or any affiliate, (ii) for violation of a policy of the Company or
any affiliate, or (iii) for serious and willful acts or misconduct
detrimental to the business or reputation of the Company or any
affiliate;

 

6.2         The
termination of Optionee’s employment with the Company or its
Subsidiaries for any reason other than as provided in Section 6.1,
6.3, 6.4, 6.5 6.6 or 6.7; provided,
however,
that the portion of the Option granted to such Optionee which was
exercisable immediately prior to such termination may be exercised
until the earlier of (i) 30 days after Optionee’s termination
of employment or (ii) the date on which such Option terminates or
expires in accordance with the provisions of this Agreement (other
than this Section 6);

 

6.3         The
termination of Optionee’s employment with the Company or its
Subsidiaries by reason of the Optionee’s death, or if the
Optionee’s employment terminates in the manner described in
Section 6.2 and the Optionee dies within such period for exercise
provided for herein; provided,
however,
that any unvested portion of the Option shall vest upon the
Optionee’s death and any unexercised portion of the Option
shall become exercisable by the Optionee's executors or
administrators, as provided in Section 10, or by the person to whom
the Option passes (the Optionee’s “Beneficiary”)
under such Optionee’s will (or, if applicable, pursuant to
the laws of descent and distribution) until the earlier of (i) one
year after the Optionee's death or (ii) the date on which such
Option terminates or expires in accordance with the provisions of
this Agreement (other than this Section 6);

 

 

-2-

 

 

6.4         The
termination of Optionee’s employment with the Company or its
Subsidiaries by reason of total and permanent disability as
determined by the Company’s Board
(“Disability”); provided, however,
that any unvested portion of the Option shall vest upon
determination of Disability by the Company’s Board, and any
unexercised portion of the Option shall become exercisable by the
Optionee until the earlier of (i) one year after Optionee’s
termination or (ii) the date on which such Option terminates or
expires in accordance with the provisions of this Agreement (other
than this Section 6);

 

6.5         The
termination of the Optionee’s employment with the Company not
for cause, provided, however,
that any unvested portion of the Option shall vest upon such
termination and any unexercised portion of the Option shall become
exercisable by the Optionee until the earlier of (i) one year after
Optionee’s termination or (ii) the date on which such Option
terminates or expires in accordance with the provisions of this
Agreement (other than this Section 6);

 

6.6         The
occurrence of a Corporate Change (as defined in the Plan);
provided,
however,
that the portion of the Option which remains outstanding and
unexercised immediately prior to such Corporate Change immediately
vest and shall be exercisable until the earlier of the date
described in Section 5 and the first anniversary of the Corporate
Change; or

 

6.7          The
commission by the Optionee of an Act of Misconduct prior to such
vesting. For purposes of this Agreement, an
“Act of
Misconduct” shall mean
the occurrence of one or more of the following events: (x) the
Optionee uses for profit or discloses to unauthorized persons,
confidential information or trade secrets of the Company or any of
its Subsidiaries, (y) the Optionee breaches any contract with or
violates any fiduciary obligation to the Company or any of its
Subsidiaries, or (z) the Optionee engages in unlawful trading in
the securities of the Company or any of its Subsidiaries or of
another company based on information gained as a result of
Optionee’s employment with, or status as a director to, the
Company or any of its Subsidiaries.

 

7. Exercise of
Option

 

The
Option shall be exercised by the Optionee (or by the
Optionee’s Beneficiary, as provided in Section 6, or by the
Optionee’s executors or administrators, as provided in
Section 10), subject to the provisions of the Plan and of this
Agreement, as to all or part of the shares of Common Stock covered
hereby, as to which the Option shall then be exercisable, by the
giving of written notice of such exercise to the Company at its
principal business office, accompanied by payment of the full
purchase price for the shares being purchased.  Payment
of such purchase price shall be made by cash or by check payable to
the Company.

 

The
Company shall cause certificates for the shares so purchased to be
delivered to the Optionee or the Optionee's Beneficiary, executors
or administrators, as applicable, against payment of the purchase
price, as soon as practicable following the Company's receipt of
the notice of exercise.

 

 

-3-

 

 

8. No Stockholder
Rights

 

Neither
the Optionee nor the Optionee’s Beneficiary, executors or
administrators shall have any of the rights of a stockholder of the
Company with respect to the shares subject to the Option until a
certificate or certificates for such shares shall have been issued
upon the exercise of the Option.

 

9. Restrictions on
Transfer

 

The Option shall not be transferable by the
Optionee other than to the Optionee's Beneficiary, executors or
administrators by will or the laws of descent and distribution, and
during the Optionee's lifetime shall be exercisable only by the
Optionee. Any attempt to transfer or otherwise dispose of
the Option in contravention of the restrictions set forth herein
shall be null and void and without effect.

 

10. Exercisability in the
Event of Optionee’s Death           

 

In
the event of the Optionee's death, the Option shall thereafter be
exercisable (to the extent otherwise exercisable hereunder) only by
the Optionee's Beneficiary, executors or
administrators.

 

11. Changes in Capital
Structure   

 

The
terms and conditions of the Option, including the number of shares
and the class or series of capital stock which may be delivered
upon exercise of the Option and the purchase price per share, are
subject to adjustment as provided in Section 7 of the
Plan.

 

12.
Optionee’s Representations, Warranties and
Covenants

 

12.1 Optionee represents and warrants that he or
she is acquiring the Option and, when vested and exercised, the
Common Stock underlying the Option, solely for his or her own
account for investment and not with a view to, or for sale in
connection with, any distribution thereof. Optionee agrees that he
or she will not, directly or indirectly, offer, transfer, sell,
pledge, hypothecate or otherwise dispose of the Option or any
Common Stock received upon exercise of the Option (or solicit any
offers to buy, purchase or otherwise acquire or take a pledge of
any Shares of Restricted Stock), or any interest therein or any
rights relating thereto, except in compliance with the Securities
Act of 1933, as amended (the “Securities
Act”), and the rules and
regulations of the Securities and Exchange Commission (the
“Commission”)
thereunder, and in compliance with all applicable state
or non-U.S. securities or “blue sky” laws.
Optionee further understands, acknowledges and agrees that none of
the Options, our upon exercise, the shares of Common Stock
underlying the Options, may be transferred, sold, pledged,
hypothecated or otherwise disposed of unless such disposition is in
compliance with the applicable provisions of the Plan and this
Agreement.

 

 

-4-

 

 

12.2 
Optionee acknowledges that any certificate evidencing the Options
shall bear the following legend prior to the lapse of any
outstanding restrictions

 

THIS
OPTION IS SUBJECT TO THE TERMS AND CONDITIONS, INCLUDING FORFEITURE
PROVISIONS AND RESTRICTIONS AGAINST TRANSFER (THE
“RESTRICTIONS”), CONTAINED IN THE FREEDOM HOLDING CORP.
2018 EQUITY INCENTIVE PLAN, AND ANY AGREEMENTS ENTERED INTO BETWEEN
THE REGISTERED OWNER AND THE COMPANY. ANY ATTEMPT TO DISPOSE OF
THIS OPTION IN CONTRAVENTION OF THE RESTRICTIONS, INCLUDING BY WAY
OF SALE, ASSIGNMENT, TRANSFER, PLEDGE, HYPOTHECATION OR OTHERWISE,
SHALL BE NULL AND VOID AND WITHOUT EFFECT.

 

12.3 
Optionee represents and warrants that, as of the date hereof, he or
she is an officer, employee or director of the Company or a
Subsidiary.

 

12.4
Optionee agrees that the obligation of the Company to issue shares
upon the exercise of the Option shall also be subject, as a
condition precedent, to compliance with applicable provisions of
the Securities Act of 1933, as amended and the Securities Exchange
Act of 1934, as amended, state securities or corporation laws,
rules and regulations under any of the foregoing and applicable
requirements of any securities exchange upon which the Company's
securities shall be listed.

 

13. No Advice Regarding
Award.

 

Optionee
is hereby advised to consult with his or her own tax, legal and/or
investment advisors with respect to any advice Optionee may
determine is needed or appropriate with respect to the Award
(including, without limitation, to determine the foreign, state,
local, estate and/or gift tax consequences with respect to the
Award, the advantages and disadvantages of making an election under
Section 83(b) of the U.S. Internal Revenue Code with respect to the
Award, and the process and requirements for such an election).
Neither the Company nor any of its officers, directors, affiliates
or advisors makes any representation (except for the terms and
conditions expressly set forth in this Agreement) or recommendation
with respect to the Award or the making of an election under
Section 83(b) of the Code with respect to the Award. In the event
the Optionee desires to make an election under Section 83(b) of the
Code with respect to the Award, it is the Optionee’s sole
responsibility to do so timely. Except for the withholding rights
set forth in Section 16 below, the Optionee is solely responsible
for any and all tax liability that may arise with respect to the
Award.

 

14. Waiver of Repurchase
Option and Right of First Refusal.

 

The
parties hereby waive any Repurchase Option or Right of First
Refusal to which the Company may be entitled pursuant to Section
6.7 of the Plan.

 

 

-5-

 

 

15. Optionee Bound by the
Plan

 

The
Option has been granted subject to the terms and conditions of the
Plan, a copy of which has been provided to the Optionee and which
the Optionee acknowledges having received and
reviewed.  Any conflict between this Agreement and the
Plan shall be decided in favor of the provisions of the
Plan.  Any conflict between this Agreement and the terms
of a written employment agreement for the Optionee that has been
approved, ratified or confirmed by the Board shall be decided in
favor of the provisions of such employment
agreement.  Capitalized terms used but not defined in
this Agreement shall have the meanings given to them in the
Plan.  This Agreement may not be amended in any manner
adverse to the Optionee except by a written agreement executed by
the Optionee and the Company.

 

16. Consent to Electronic
Delivery

 

By
executing this Agreement, the Optionee hereby consents to the
electronic delivery of prospectuses, annual reports and other
information required to be delivered by Commission
rules.  This consent may be revoked in writing by the
Optionee at any time upon three business days’ notice to the
Company, in which case subsequent prospectuses, annual reports and
other information will be delivered in hard copy to the
Optionee.

 

17. Withholding of
Taxes     

 

The
Company or any Subsidiary employing the Optionee has the authority
and the right to deduct or withhold, or require the Optionee to
remit to the Company or its Subsidiary, as applicable, an amount
sufficient to satisfy federal, state, and local income and
employment taxes (including the Optionee’s FICA obligation,
or similar obligation) required by law to be withheld with respect
to any taxable event arising as a result of the exercise of the
Option (or any portion thereof).  The withholding
requirement may be satisfied, in whole or in part, at the election
of the Optionee by withholding from the shares of Common Stock
otherwise issuable upon the exercise of the Option (or portion
thereof) that number of shares having an aggregate fair market
value (as defined in the Plan) on the date of the withholding equal
to the minimum amount (and not any greater amount) required to be
withheld for tax purposes, all in accordance with such procedures
as the Committee establishes.  The obligations of the
Company under this Agreement will be conditional on such payment or
arrangements, and the Company, and, where applicable, its
Affiliates, will, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to
Optionee.

  

18. Notices

 

Notices
and communications under this Agreement must be in writing and
either personally delivered or sent by registered or certified
mail, return receipt requested, postage prepaid.  Notices
to the Company must be addressed to Freedom Holding Corp., Office
1704, 4B Building, “Nurly Tau” BC, 17 Al Farabi Ave,
Almaty, Kazakhstan 050059, Attn. Evgeny Ler, Chief Financial
Officer, or any other address designated by the Company in a
written notice to the Optionee.  Notices to the Optionee
will be directed to the address of the Optionee then currently on
file with the Company, or at any other address given by the
Optionee in a written notice to the Company.

 

 

-6-

 

 

19. Compliance with
Section 409A of the Code

 

If
any provision of this Agreement could cause the application of an
accelerated or additional tax under Section 409A of the Code upon
the vesting or exercise of the Option (or any portion thereof),
such provision shall be restructured, to the minimum extent
possible, in a manner determined by the Company (and reasonably
acceptable to the Optionee) that does not cause such an accelerated
or additional tax (including, if applicable, by increasing the
purchase price of the shares of Common Stock subject to the Option
to the reflect the “fair market value” of share of
Common Stock on the Date of Grant, within the meaning of Section
409A of the Code and any Treasury Regulations or other IRS guidance
promulgated thereunder).

 

20. No Right to Continued
Employment

 

This
Award does not constitute an employment
contract.  Nothing herein shall confer upon the Optionee
the right to continue to serve as a director or officer to, or to
continue as an employee or service provider of, the Company or any
of its Affiliates for the length of the vesting schedule set forth
in Section 3 or for any portion thereof.

 

21. Modification of
Agreement.

 

This
Agreement may be modified, amended, suspended or terminated, and
any terms or conditions may be waived, but only by a written
instrument executed by the parties hereto.

 

22. Severability.

 

Should
any provision of this Agreement be held by a court of competent
jurisdiction to be unenforceable or invalid for any reason, the
remaining provisions of this Agreement shall not be affected by
such holding and shall continue in full force in accordance with
their terms.

 

23. Governing
Law.

 

The
validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Utah
without giving effect to the conflicts of laws principles
thereof.

 

24. Successors in
Interest.

 

This
Agreement shall inure to the benefit of and be binding upon any
successor to the Company. This Agreement shall inure to the benefit
of the Optionee’s legal representatives. All obligations
imposed upon the Optionee and all rights granted to the Company
under this Agreement shall be binding upon the Optionee’s
heirs, executors, administrators and successors.

 

25. Resolution of
Disputes.

 

Any
dispute or disagreement which may arise under, or as a result of,
or in any way relate to, the interpretation, construction or
application of this Agreement shall be determined by the Board. Any
determination made hereunder shall be final, binding and conclusive
on the Optionee, the Optionee’s heirs, executors,
administrators and successors, and the Company and its Subsidiaries
for all purposes.

 

 

-7-

 

 

26. Entire
Agreement.

 

This
Agreement and the terms and conditions of the Plan constitute the
entire understanding between the Optionee and the Company and its
Subsidiaries, and supersede all other agreements, whether written
or oral, with respect to the Award.

 

27. Headings.

 

The
headings of this Agreement are inserted for convenience only and do
not constitute a part of this Agreement.

 

28. Counterparts.

 

This
Agreement may be executed simultaneously in two or more
counterparts, each of which shall constitute an original, but all
of which taken together shall constitute one and the same
agreement.

 

 

	
 

	

FREEDOM HOLDING CORP.

 

 

	
 

	

By:

	
 

	
 

	
 

	

Timur Turlov, Chief Executive Officer

	
 

	
 

	
 

	
 

	

OPTIONEE

 

 

	
 

	

By:

	
 

	
 

	

Name:

	
 

 

 

 

 

 

 

 

-8-EXHIBIT 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of October 9, 2017, by and between JOHN P. KENNY (the "Executive") and MERIDIAN BIOSCIENCE, INC., an Ohio corporation (the "Company").

WHEREAS, the Company desires to employ the Executive on the terms and conditions set forth herein; and

WHEREAS, the Executive desires to be employed by the Company on such terms and conditions.

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

1. Term. The Executive's employment hereunder shall be effective as of October 9, 2017 (the "Effective Date") and shall continue until the second anniversary thereof, unless terminated earlier pursuant to Section 5 of this Agreement; provided that, on such second anniversary of the Effective Date and each annual anniversary thereafter (such date and each annual anniversary thereof, a "Renewal Date"), the Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term of the Agreement at least 90 days' prior to the applicable Renewal Date. The period during which the Executive is employed by the Company hereunder is hereinafter referred to as the "Employment Term."

2. Position and Duties.

2.1 Position. During the Employment Term, the Executive shall serve as the Chief Executive Officer of the Company, reporting to Company's Board of Directors (the "Board"). In such position, the Executive shall have such duties, authority, and responsibility as shall be determined from time to time by the Board, which duties, authority, and responsibility are consistent with the Executive's position. The Executive shall also serve as a member of the Board and, if requested, as an officer or director of any affiliate of the Company for no additional compensation.

2.2 Duties. During the Employment Term, the Executive shall devote substantially all of his business time and attention to the performance of the Executive's duties hereunder and will not engage in any other business, profession, or occupation for compensation or otherwise which would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the Board. Notwithstanding the foregoing, the Executive will be permitted to (a) with the prior written consent of the Board (which consent can be withheld by the Board in its discretion) act or serve as a director, trustee, committee member, or principal of any type of business, civic, or charitable organization as long as such activities are disclosed in writing to the Company's Chief Financial Officer or Secretary, and (b) purchase or own less than five percent (5%) of the publicly traded securities of any corporation; provided that, such ownership represents a passive investment and that the Executive is not a controlling person of, or a member of a group that controls, such corporation; provided further that, the activities described in clauses (a) and (b) do not interfere with the performance of the Executive's duties and responsibilities to the Company as provided hereunder, including, but not limited to, the obligations set forth in Section 2 hereof.

3. Place of Performance. The principal place of Executive's employment shall be the Company's principal executive office currently located in Cincinnati, Ohio; provided that, the Executive may be required to travel on Company business during the Employment Term.

4. Compensation.

4.1 Base Salary. For the first twelve (12) months of the Employment Term ("Year 1"), the Company shall pay the Executive an annual rate of base salary of $550,000, inclusive of Executive's automobile allowance and professional allowances, in periodic installments in accordance with the Company's customary payroll practices and applicable wage payment laws, but no less frequently than monthly.  On October 1, 2018, Executive's annual base salary shall increase to $650,000.  Thereafter, the Executive's base salary shall be reviewed at least annually by the Board in accordance with Company's standard time periods for review.  The Board may, but shall not be required to, increase the base salary during the Employment Term. The Executive's annual base salary, as in effect from time to time, is hereinafter referred to as "Base Salary".

4.2 Annual Bonus.

	
(a)

	
For each fiscal year of the Employment Term, the Executive shall be eligible to earn an annual bonus (the "Annual Bonus") of up to $275,000 for Year 1 and $325,000 for the second twelve (12) months of the employment term ("Year 2").  The actual amount of any Annual Bonus payable to Executive in any year shall be determined by the Compensation Committee of the Board (the "Compensation Committee") based upon performance criteria set forth in advance under the Bonus Plan and the achievement of such performance criteria.

	
(b)

	
The Annual Bonus, if any, will be paid in accordance with the terms of the Bonus Plan established by the Compensation Committee.

	
(c)

	
Except as otherwise provided in Section 5, in order to be eligible to receive an Annual Bonus, the Executive must be employed by the Company on the last day of the applicable fiscal year.

4.3 Equity Awards.

	
(a)

	
In consideration of the Executive entering into this Agreement and as an inducement to join the Company, on the Effective Date, the Company will grant the following equity awards to the Executive pursuant to the Meridian Bioscience, Inc. 2012 Stock Incentive Plan (the "Plan"):  (i) options to purchase 100,000 shares of common stock in the Company at an exercise price equal to the fair market value on the date of grant, which shall vest on a pro rata basis over the four (4) years following the Effective Date; (ii) 13,000 restricted stock units which shall vest in a lump sum or "cliff" basis on the second anniversary of the Effective Date.  All other terms and conditions of such awards shall be governed by the terms and conditions of the Plan and the applicable award agreements; and

	
(b)

	
In conjunction with the Company's November 2017 management equity awards, 25,000 restricted stock units, which shall vest in a lump sum or "cliff" basis on the fourth anniversary of the Effective Date.  Thereafter, with respect to each fiscal year of the Company ending during the Employment Term, the Executive shall be eligible to receive annual equity awards under the Plan or any successor plan; provided that, the Executive shall receive no less than 25,000 restricted stock units per year which shall vest in a lump sum or "cliff" basis on the fourth anniversary following the date of grant.  All other terms and conditions of such awards shall be governed by the terms and conditions of the Plan and the applicable award agreements.

4.4 Fringe Benefits. During the Employment Term, the Executive shall be entitled to fringe benefits consistent with the practices of the Company, and to the extent the Company provides similar benefits to similarly situated executives of the Company.

4.5 Employee Benefits. During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans, practices, and programs maintained by the Company, as in effect from time to time (collectively, "Employee Benefit Plans"), on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel any Employee Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.

4.6 Vacation/Time Off.  During the Employment Term, Executive shall be entitled to paid vacation time in accordance with the plans, practices, policies and programs applicable to other senior officers of the Company, but in no event shall such vacation time be less than four (4) weeks per year, plus other standard time off benefits of other senior officers of the Company.

4.7 Business Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment, and travel expenses incurred by the Executive in connection with the performance of the Executive's duties hereunder in accordance with the Company's expense reimbursement policies and procedures.

4.8 Indemnification.

	
(a)

	
In the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a "Proceeding"), other than any Proceeding initiated by the Executive or the Company related to any contest or dispute between the Executive and the Company or any of its affiliates with respect to this Agreement or the Executive's employment hereunder, by reason of the fact that the Executive is or was a director or officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer, member, employee, or agent of another corporation or a partnership, joint venture, trust, or other enterprise, the Executive shall be indemnified and held harmless by the Company to the maximum extent permitted under applicable law and the Company's Articles of Incorporation and Code of Regulations from and against any liabilities, costs, claims, and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys' fees). Costs and expenses incurred by the Executive in defense of such Proceeding (including attorneys' fees) shall be paid by the Company in advance of the final disposition of such litigation upon receipt by the Company of: (i) a written request for payment; (ii) appropriate documentation evidencing the incurrence, amount, and nature of the costs and expenses for which payment is being sought; and (iii) an undertaking adequate under applicable law made by or on behalf of the Executive to repay the amounts so paid if it shall ultimately be determined that the Executive is not entitled to be indemnified by the Company under this Agreement.

	
(b)

	
During the Employment Term and for a period of six (6) years thereafter, the Company or any successor to the Company shall purchase and maintain, at its own expense, directors' and officers' liability insurance providing coverage to the Executive on terms that are no less favorable than the coverage provided to other directors and similarly situated executives of the Company.

4.9 Clawback Provisions.  Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation, or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).

5. Termination of Employment. The Employment Term and the Executive's employment hereunder may be terminated by either the Company or the Executive at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required to give the other party at least ninety (90) days advance written notice of any termination of the Executive's employment. Upon termination of the Executive's employment during the Employment Term, the Executive shall be entitled to the compensation and benefits described in this Section 5 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates.

5.1 Expiration of the Term, for Cause or Without Good Reason.

	
(a)

	
The Executive's employment hereunder may be terminated upon either party's failure to renew the Agreement in accordance with Section 1, by the Company for Cause or by the Executive without Good Reason. If the Executive's employment is terminated upon either party's failure to renew the Agreement, by the Company for Cause or by the Executive without Good Reason, the Executive shall be entitled to receive:

	
(i)

	
any accrued but unpaid Base Salary and accrued but unused vacation which shall be paid on the pay date immediately following the Termination Date (as defined below) in accordance with the Company's customary payroll procedures;

	
(ii)

	
any earned but unpaid Annual Bonus with respect to any completed fiscal year immediately preceding the Termination Date, which shall be paid on the otherwise applicable payment date; provided that, if the Executive's employment is terminated by the Company for Cause, then any such accrued but unpaid Annual Bonus shall be forfeited;

	
(iii)

	
reimbursement for unreimbursed business expenses properly incurred by the Executive, which shall be subject to and paid in accordance with the Company's expense reimbursement policy; and

	
(iv)

	
such employee benefits (including equity compensation), if any, to which the Executive may be entitled under the Company's employee benefit plans as of the Termination Date; provided that, in no event shall the Executive be entitled to any payments in the nature of severance or termination payments except as specifically provided herein.

Items 5.1(a)(i) through 5.1(a)(iv) are referred to herein collectively as the "Accrued Amounts".

	
(b)

	
For purposes of this Agreement, "Cause" shall mean:

	
(i)

	
the Executive's failure to perform his duties (other than any such failure resulting from incapacity due to physical or mental illness);

	
(ii)

	
the Executive's failure to comply with any valid and legal directive of the Board;

	
(iii)

	
the Executive's engagement in dishonesty, illegal conduct, or gross misconduct, which is, in each case, injurious to the Company or its affiliates or Executive's breach of any fiduciary duty or duty of loyalty to Company or any of its subsidiaries or affiliates;

	
(v)

	
the Executive's conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;

	
(vi)

	
the Executive's willful unauthorized disclosure of Confidential Information (as defined below);

	
(vii)

	
the Executive's material breach of any material obligation under this Agreement or any other written agreement between the Executive and the Company; or

	
(viii)

	
any material failure by the Executive to comply with the Company's written policies or rules, as they may be in effect from time to time during the Employment Term.

Termination of the Executive's employment shall not be deemed to be for Cause unless and until the Company delivers to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board, finding that the Executive has engaged in the conduct described in any of (i)-(viii) above. Except for a failure, breach, or refusal which, by its nature, cannot reasonably be expected to be cured, the Executive shall have ten (10) business days from the delivery of written notice by the Company within which to cure any acts constituting Cause; provided however, that, if the Company reasonably expects irreparable injury from a delay of ten (10) business days, the Company may give the Executive notice of such shorter period within which to cure as is reasonable under the circumstances, which may include the termination of the Executive's employment without notice and with immediate effect. The Company may place the Executive on paid leave for up to sixty (60) days while it is determining whether there is a basis to terminate the Executive's employment for Cause. Any such action by the Company will not constitute Good Reason.

	
(c)

	
For purposes of this Agreement, "Good Reason" shall mean the occurrence of any of the following, in each case during the Employment Term without the Executive's written consent:

	
(i)

	
a material reduction in the Executive's Base Salary other than a general reduction in Base Salary that affects all similarly situated executives in substantially the same proportions;

	
(ii)

	
a material reduction in the Executive's Annual Bonus with a target of thirty percent (30%) of Base Salary (the "Target Bonus") opportunity;

	
(iii)

	
a relocation of the Executive's principal place of employment by more than fifty (50) miles;

	
(iv)

	
any material breach by the Company of any material provision of this Agreement or any material provision of any other agreement between the Executive and the Company;

	
(v)

	
the Company's failure to nominate the Executive for election to the Board and to use its best efforts to have him elected and re-elected, as applicable; or

	
(vi)

	
a material, adverse change in the Executive's title, authority, duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law).

The Executive cannot terminate his employment for Good Reason unless he has provided written notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason within thirty (30) days of the initial existence of such grounds and the Company has had at least thirty (30) days from the date on which such notice is provided to cure such circumstances. If the Executive does not terminate his employment for Good Reason within ninety (90) days after the first occurrence of the applicable grounds, then the Executive will be deemed to have waived his right to terminate for Good Reason with respect to such grounds.

5.2 Without Cause or for Good Reason. The Employment Term and the Executive's employment hereunder may be terminated by the Executive for Good Reason or by the Company without Cause. In the event of such termination, the Executive shall be entitled to receive the Accrued Amounts and subject to the Executive's compliance with Section 6, Section 7, Section 8, and Section 9 of this Agreement and his execution of a release of claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the "Release") and such Release becoming effective within twenty-one (21) days following the Termination Date (such twenty-one (21) day period, the "Release Execution Period"), the Executive shall be entitled to receive the following:

	
(a)

	
continued Base Salary for one year following the Termination Date payable in equal installments in accordance with the Company's normal payroll practices, but no less frequently than monthly, which shall commence within twenty-eight (28) days following the Termination Date; provided that, if the Release Execution Period begins in one taxable year and ends in another taxable year, payments shall not begin until the beginning of the second taxable year; provided further that, the first installment payment shall include all amounts of Base Salary that would otherwise have been paid to the Executive during the period beginning on the Termination Date and ending on the first payment date if no delay had been imposed;

	
(b)

	
a payment equal to the product of (i) the Annual Bonus, if any, that the Executive would have earned for the fiscal year in which the Termination Date (as determined in accordance with Section 5.6) occurs based on achievement of the applicable performance goals for such year and (ii) a fraction, the numerator of which is the number of days the Executive was employed by the Company during the year of termination and the denominator of which is the number of days in such year (the "Pro-Rata Bonus"). This amount shall be paid on the date that annual bonuses are paid to similarly situated executives, but in no event later than two-and-a-half (2 1/2) months following the end of the fiscal year in which the Termination Date occurs;

	
(c)

	
If the Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"), the Company shall reimburse the Executive for the difference between the monthly COBRA premium paid by the Executive for himself and his dependents and the monthly premium amount paid by similarly situated active executives. Such reimbursement shall be paid to the Executive on the standard payroll payment date of the month immediately following the month in which the Executive timely remits the premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (i) the eighteen-month anniversary of the Termination Date; (ii) the date the Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the date on which the Executive becomes eligible to receive substantially similar coverage from another employer or other source. Notwithstanding the foregoing, if the Company's making payments under this Section 5.2(c) would violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the "ACA"), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder), the parties agree to reform this Section 5.2(c) in a manner as is necessary to comply with the ACA.

	
(d)

	
The treatment of any outstanding equity awards shall be determined in accordance with the terms of the Plan and the applicable award agreements.

5.3 Death or Disability.

	
(a)

	
The Executive's employment hereunder shall terminate automatically upon the Executive's death during the Employment Term, and the Company may terminate the Executive's employment on account of the Executive's Disability.

	
(b)

	
If the Executive's employment is terminated during the Employment Term on account of the Executive's death or Disability, the Executive (or the Executive's estate and/or beneficiaries, as the case may be) shall be entitled to receive the following:

	
(i)

	
the Accrued Amounts; and

	
(ii)

	
a lump sum payment equal to the Pro-Rata Bonus, if any, that the Executive would have earned for the fiscal year in which the Termination Date occurs based on the achievement of applicable performance goals for such year, which shall be payable on the date that annual bonuses are paid to the Company's similarly situated executives, but in no event later than two-and-a-half (2 1/2) months following the end of the fiscal year in which the Termination Date occurs.

	
(c)

	
For purposes of this Agreement, "Disability" shall mean the Executive is entitled to receive long-term disability benefits under the Company's long-term disability plan, or if there is no such plan, the Executive's inability, due to physical or mental incapacity, to perform the essential functions of his job, with or without reasonable accommodation, for one hundred eighty (180) days out of any three hundred sixty-five (365) day period or one hundred twenty (120) consecutive days. Any question as to the existence of the Executive's Disability as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company. If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement.

5.4 Change in Control Termination.

	
(a)

	
Notwithstanding any other provision contained herein, if the Executive's employment hereunder is terminated by the Executive for Good Reason or by the Company on account of its failure to renew the Agreement in accordance with Section 1 or without Cause (other than on account of the Executive's death or Disability), in each case within twenty-four (24)  months following a Change in Control, the Executive shall be entitled to receive the Accrued Amounts and subject to the Executive's compliance with Section 6, Section 7, Section 8 and Section 9 of this Agreement and his execution of a Release which becomes effective within twenty-eight (28) days following the Termination Date, the Executive shall be entitled to receive a lump sum cash payment equal to two (2) times the then current Base Salary following the Termination Date payable within sixty (60) days and Target Bonus for the year in which the Termination Date occurs (or if greater, the year immediately preceding the year in which the Change in Control occurs), which shall be paid when annual bonuses are paid to similarly situated executives; provided that, if the Release Execution Period begins in one taxable year and ends in another taxable year, payment shall not be made until the beginning of the second taxable year.

	
(b)

	
Executive shall be entitled, at the Company's expense, to twenty four (24) months of such medical, dental, hospitalization, life insurance, pension plan, profit-sharing, disability, employee benefits and such other similar employment privileges and benefits or perquisites as are afforded generally from time to time to other senior officers of the Company from and after Executive's Termination Date with the Company or a subsidiary of the Company.

	
(c)

	
For purposes of this Agreement, "Change in Control" shall mean the occurrence of any of the following after the Effective Date:

	
(i)

	
the sale of all, or substantially all of the assets of the Company;

	
(ii)

	
a merger, or recapitalization, or similar transaction which results in the shareholders of the Company immediately prior to such event owning less than sixty percent (60%) of the fair market value or the voting power of the surviving entity;

	
(iii)

	
the date during any twelve (12) month period that a majority of the Board is replaced by directors whose appointment is not endorsed by a majority of the members of the Board before the date of appointment or election;

	
(iv)

	
the acquisition, directly or indirectly, of the Beneficial Ownership (within the meaning of that term as it is used in Section 13(d) of the Securities Exchange Act of 1934, as amended) of fifty percent (50%) or more of the outstanding voting securities of  the Company by any Person, entity or group.  This definition shall not apply to the purchase of by underwriters in connection with a public offering of securities of the Company, or the purchase of shares of up to twenty five percent (25%)  of any class of securities of the Company by a tax-qualified employee stock benefit plan. 

 Notwithstanding the foregoing, a Change in Control shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the Company's assets under Section 409A.

5.5 Notice of Termination. Any termination of the Executive's employment hereunder by the Company or by the Executive during the Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive's death) shall be communicated by written notice of termination ("Notice of Termination") to the other party hereto in accordance with Section 24. The Notice of Termination shall specify:

	
(a)

	
The termination provision of this Agreement relied upon;

	
(b)

	
To the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated; and

	
(c)

	
The applicable Termination Date.

5.6 Termination Date. The Executive's "Termination Date" shall be:

	
(a)

	
If the Executive's employment hereunder terminates on account of the Executive's death, the date of the Executive's death;

	
(b)

	
If the Executive's employment hereunder is terminated on account of the Executive's Disability, the date that it is determined that the Executive has a Disability;

	
(c)

	
If the Company terminates the Executive's employment hereunder for Cause, the date the Notice of Termination is delivered to the Executive;

	
(d)

	
If the Company terminates the Executive's employment hereunder without Cause, the date specified in the Notice of Termination, which shall be no less than thirty (30) days following the date on which the Notice of Termination is delivered; provided that, the Company shall have the option to provide the Executive with a lump sum payment equal to thirty (30) days' Base Salary in lieu of such notice, which shall be paid in a lump sum on the Executive's Termination Date and for all purposes of this Agreement, the Executive's Termination Date shall be the date on which such Notice of Termination is delivered;

	
(e)

	
If the Executive terminates his employment hereunder with or without Good Reason, the date specified in the Executive's Notice of Termination, which shall be no less than ninety (90) days following the date on which the Notice of Termination is delivered; provided that, the Company may waive all or any part of the ninety (90) day notice period for no consideration by giving written notice to the Executive and for all purposes of this Agreement, the Executive's Termination Date shall be the date determined by the Company; and

	
(f)

	
If the Executive's employment hereunder terminates because either party provides notice of non-renewal pursuant to Section 1, the Renewal Date immediately following the date on which the applicable party delivers notice of non-renewal.

Notwithstanding anything contained herein, the Termination Date shall not occur until the date on which the Executive incurs a "separation from service" within the meaning of Section 409A.

5.7 Resignation of All Other Positions. Upon termination of the Executive's employment hereunder for any reason, the Executive shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof) of the Company or any of its affiliates.

5.8 Section 280G.  In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute "parachute payments" within the meaning of Section 280G of the Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then Executive's benefits under this Agreement shall be either

(i) delivered in full, or

(ii) delivered as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after−tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  If a reduction in severance and other benefits constituting "parachute payments" is necessary so that benefits are delivered to a lesser extent, payments to Executive under this Agreement which do not constitute nonqualified deferred compensation subject to Section 409A shall be reduced first, and other payments to Executive shall then be reduced in the following order: reduction of cash payments, cancellation of equity awards granted within the twelve (12) month period prior to a "change in control" (as determined under Code Section 280G) that are deemed to have been granted contingent upon the change in control (as determined under Code Section 280G), cancellation of accelerated vesting of equity awards, reduction of employee benefits.

Unless the Company and Executive otherwise agree in writing, any determination required under this Section shall be made in writing by the Company's independent public accountants (the "Accountants"),  whose determination shall be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code.  The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.

6. Cooperation. The parties agree that certain matters in which the Executive will be involved during the Employment Term may necessitate the Executive's cooperation in the future. Accordingly, following the termination of the Executive's employment for any reason, to the extent reasonably requested by the Board, the Executive shall cooperate with the Company in connection with matters arising out of the Executive's service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive's other activities. The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate based on the Executive's Base Salary on the Termination Date.

7. Confidential Information. The Executive understands and acknowledges that during the Employment Term, he will have access to and learn about Confidential Information, as defined below.

7.1 Confidential Information Defined.

	
(a)

	
Definition.  For purposes of this Agreement, "Confidential Information" includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer software, applications, software design, web design, work-in-process, databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial information, results, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms, product plans, designs, styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information, customer lists, client information, client lists, manufacturing information, factory lists, distributor lists, and buyer lists of the Company or its businesses or any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence.

The Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.

The Executive understands and agrees that Confidential Information includes information developed by him in the course of his employment by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault of the Executive or person(s) acting on the Executive's behalf.

	
(b)

	
Company Creation and Use of Confidential Information.  The Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its employees, and improving its offerings in the field of In-Vitro diagnostics and life science components and products. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace.

	
(c)

	
Disclosure and Use Restrictions.  The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other employees of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in the performance of the Executive's authorized employment duties to the Company or with the prior consent of the Chairman of the Board acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of the Company, except as required in the performance of the Executive's authorized employment duties to the Company or with the prior consent of the Chairman of the Board acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The Executive shall promptly provide written notice of any such order to the Chairman of the Board.

	
(d)

	
Notice of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016 ("DTSA"). Notwithstanding any other provision of this Agreement:

	
(i)

	
The Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that:

	
(1)

	
is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or

	
(2)

	
is made in a complaint or other document filed under seal in a lawsuit or other proceeding.

	
(ii)

	
If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose the Company's trade secrets to the Executive's attorney and use the trade secret information in the court proceeding if the Executive:

	
(1)

	
files any document containing trade secrets under seal; and

	
(2)

	
does not disclose trade secrets, except pursuant to court order.

8. Restrictive Covenants.

8.1 Acknowledgement. The Executive understands that the nature of the Executive's position gives him access to and knowledge of Confidential Information and places him in a position of trust and confidence with the Company.

The Executive further understands and acknowledges that the Company's ability to reserve these for the exclusive knowledge and use of the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure by the Executive is likely to result in unfair or unlawful competitive activity.

8.2 Non-Competition. Because of the Company's legitimate business interest as described herein and the good and valuable consideration offered to the Executive, during the Employment Term and for the two (2) years, to run consecutively, beginning on the last day of the Executive's employment with the Company, for any reason or no reason and whether employment is terminated at the option of the Executive or the Company, the Executive agrees and covenants not to engage in Prohibited Activity within any geographic market into which the Company has sold products in the preceding twelve (12) month period.

For purposes of this Section 8, "Prohibited Activity" is activity in which the Executive contributes his knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, employee, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity to an entity engaged in the same or similar business as the Company, including those engaged in the business of In-Vitro diagnostics and life science components and products. Prohibited Activity also includes activity that may require or inevitably requires disclosure of trade secrets, proprietary information or Confidential Information.

The Company regards as its primary, but not exclusive (or intended to be limiting for purposes hereof), competitors the following:  Quidel Corporation; Luminex Corporation; OraSure Technologies, Inc.; Alere, Inc. a subsidiary of Abbott; Cepheid, Inc, a subsidiary of Danahaer and DiaSorin.

Nothing herein shall prohibit the Executive from purchasing or owning less than five percent (5%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that the Executive is not a controlling person of, or a member of a group that controls, such corporation.

This Section 8 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly provide written notice of any such order to the Chairman of the Board.

8.3 Non-Solicitation of Employees. The Executive agrees and covenants not to directly or indirectly solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company during two (2) years, to run consecutively, beginning on the last day of the Executive's employment with the Company.

8.4 Non-Solicitation of Customers. The Executive understands and acknowledges that because of the Executive's experience with and relationship to the Company, he will have access to and learn about much or all of the Company's customer information. "Customer Information" includes, but is not limited to, names, phone numbers, addresses, e-mail addresses, order history, order preferences, chain of command, pricing information, and other information identifying facts and circumstances specific to the customer and relevant to services.

The Executive understands and acknowledges that loss of this customer relationship and/or goodwill will cause significant and irreparable harm.

The Executive agrees and covenants, during two (2) years, to run consecutively, beginning on the last day of the Executive's employment with the Company, not to directly or indirectly solicit, contact (including but not limited to e-mail, regular mail, express mail, telephone, fax, and instant message), attempt to contact, or meet with the Company's current, former or prospective customers for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company.

9. Non-Disparagement. The Executive agrees and covenants that he will not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors and other associated third parties.

This Section 9 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly provide written notice of any such order to the Chairman of the Board.

10. Acknowledgement. The Executive acknowledges and agrees that the services to be rendered by him to the Company are of a special and unique character; that the Executive will obtain knowledge and skill relevant to the Company's industry, methods of doing business and marketing strategies by virtue of the Executive's employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Company.

The Executive further acknowledges that the amount of his compensation reflects, in part, his obligations and the Company's rights under Section 7, Section 8, and Section 9 of this Agreement; that he has no expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith; and that he will not be subject to undue hardship by reason of his full compliance with the terms and conditions of Section 7, Section 8, and Section 9 of this Agreement or the Company's enforcement thereof.

11. Remedies. In the event of a breach or threatened breach by the Executive of Section 7, Section 8, or Section 9 of this Agreement, the Executive hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief.

12. Security.

12.1 Security and Access. The Executive agrees and covenants (a) to comply with all Company security policies and procedures as in force from time to time including without limitation those regarding computer equipment, telephone systems, voicemail systems, facilities access, monitoring, key cards, access codes, Company intranet, internet, social media and instant messaging systems, computer systems, e-mail systems, computer networks, document storage systems, software, data security, encryption, firewalls, passwords and any and all other Company  facilities, IT resources and communication technologies ("Facilities and Information Technology Resources"); (b) not to access or use any Facilities and Information Technology Resources except as authorized by the Company; and (iii) not to access or use any Facilities and Information Technology Resources in any manner after the termination of the Executive's employment by the Company, whether termination is voluntary or involuntary. The Executive agrees to notify the Company promptly in the event he  learns of any violation of the foregoing by others, or of any other misappropriation or unauthorized access, use, reproduction, or reverse engineering of, or tampering with any Facilities and Information Technology Resources or other Company property or materials by others.

12.2 Exit Obligations. Upon (a) voluntary or involuntary termination of the Executive's employment or (b) the Company's request at any time during the Executive's employment, the Executive shall (i) provide or return to the Company any and all Company property, including keys, key cards, access cards, identification cards, security devices, employer credit cards, network access devices, computers, cell phones, smartphones, PDAs, pagers, fax machines, equipment, speakers, webcams, manuals, reports, files, books, compilations, work product, e-mail messages, recordings, tapes, disks, thumb drives or other removable information storage devices, hard drives, negatives and data and all Company documents and materials belonging to the Company and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information or Work Product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or any of its business associates or created by the Executive in connection with his employment by the Company; and (ii) delete or destroy all copies of any such documents and materials not returned to the Company that remain in the Executive's possession or control, including those stored on any non-Company devices, networks, storage locations, and media in the Executive's possession or control.

13. Publicity. The Executive hereby irrevocably consents to any and all uses and displays, by the Company and its agents, representatives and licensees, of the Executive's name, voice, likeness, image, appearance, and biographical information in, on or in connection with any pictures, photographs, audio and video recordings, digital images, websites, television programs and advertising, other advertising and publicity, sales and marketing brochures, books, magazines, other publications, CDs, DVDs, tapes, and all other printed and electronic forms and media throughout the world, at any time during or after the period of his employment by the Company, for all legitimate commercial and business purposes of the Company ("Permitted Uses") without further consent from or royalty, payment, or other compensation to the Executive. The Executive hereby forever waives and releases the Company and its directors, officers, employees, and agents from any and all claims, actions, damages, losses, costs, expenses, and liability of any kind, arising under any legal or equitable theory whatsoever at any time during or after the period of his employment by the Company, arising directly or indirectly from the Company's and its agents', representatives', and licensees' exercise of their rights in connection with any Permitted Uses.

14. Governing Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of Ohio without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of Ohio, county of Hamilton. The parties hereby irrevocably submit to the non-exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

15. Entire Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement.

16. Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by the Chairman of the Board of the Company. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power, or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power, or privilege.

17. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.

The parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement, or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

The parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth herein.

18. Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

19. Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

20. Tolling. Should the Executive violate any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue will run from the first date on which the Executive ceases to be in violation of such obligation.

21. Section 409A.

21.1 General Compliance. This Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.

21.2 Specified Employees. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and the Executive is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date or, if earlier, on the Executive's death (the "Specified Employee Payment Date"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which the Executive's separation from service occurs shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

21.3 Reimbursements. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:

	
(a)

	
the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;

	
(b)

	
any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and

	
(c)

	
any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

22. Notification to Subsequent Employer. When the Executive's employment with the Company terminates, the Executive agrees to notify any subsequent employer of the restrictive covenants sections contained in this Agreement. The Executive will also deliver a copy of such notice to the Company before the Executive commences employment with any subsequent employer. In addition, the Executive authorizes the Company to provide a copy of the restrictive covenants sections of this Agreement to third parties, including but not limited to, the Executive's subsequent, anticipated, or possible future employer.

23. Successors and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.

24. Notice. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice):

If to the Company:

Meridian Bioscience, Inc.

3471 River Hills Drive

Cincinnati, Ohio  45244

Attention:  Chairman of the Board

With a copy to:

Keating Muething & Klekamp PLL

Suite 1400

One East Fourth Street

Cincinnati, Ohio  45202

Attention:  James M. Jansing

If to the Executive:

Mr. John P. Kenny

____________________________

____________________________

25. Representations of the Executive. The Executive represents and warrants to the Company that:

	
(a)

	
The Executive's acceptance of employment with the Company and the performance of his duties hereunder will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement, or understanding to which he is a party or is otherwise bound.

	
(b)

	
The Executive's acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer.

26. Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal, state, and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

27. Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

28. Acknowledgement of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

SIGNATURE PAGE FOLLOWS

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

	 	
MERIDIAN BIOSCIENCE, INC.

	 	
 

	 	 By: /s/ John Kraeutler
	 	 Name: John A. Kraeutler
	 	 Title: Chairman, CEO
	 	 

 

	 EXECUTIVE	 
	 	
 

	 Signature: /s/ John P. Kenny	
 

	 Print Name: John P. Kenny

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