Document:

Exhibit

DESCRIPTION OF THE COMPANY’S SECURITIES REGISTERED 
PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following is a brief description of the common stock, $2.00 par value per share (the “Common Stock”), of Owens & Minor, Inc. (the “Company,” “we,” “us,” and “our”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”). 

DESCRIPTION OF CAPITAL STOCK 
Our authorized capital stock consists of 200,000,000 shares of common stock, par value $2.00 per share, and 10,000,000 shares of cumulative preferred stock, par value $100.00 per share. As of February 14, 2020, 62,849,712 shares of our common stock were issued and outstanding and no shares of our preferred stock were issued and outstanding. 
The following summary description sets forth some of the general terms and provisions of our common stock. Because this is a summary description, it does not contain all of the information that may be important to you. For a more detailed description of our common stock, you should refer to the provisions of our amended and restated articles of incorporation and our amended and restated bylaws, as amended, each of which is an exhibit to the Form 10-K to which this description is an exhibit.
Common Stock 
Dividends 
Subject to the rights of any series of preferred stock that we may issue, the holders of common stock may receive dividends when, as and if declared by our board of directors, out of our assets legally available therefor. 
Voting Rights 
Holders of shares of our common stock are entitled to one vote for each share held of record on all matters on which shareholders are entitled to vote generally, including the election or removal of directors. In uncontested elections, directors are elected by a majority of the votes cast in the election for such director nominee. The holders of our common stock do not have cumulative voting rights in the election of directors. The affirmative vote of more than two-thirds of the outstanding shares of common stock is required for certain amendments to our amended and restated articles of incorporation and the approval of mergers, statutory share exchanges, certain sales or other dispositions of assets outside the usual and regular course of business, conversions, domestications and dissolutions. All other matters to be voted on by shareholders must be approved by a majority of the votes cast on the matter. 
Liquidation Rights 
Upon our dissolution, liquidation or winding up and after payment in full of all amounts required to be paid to creditors and to the holders of shares of our preferred stock having liquidation preferences, if any, the holders of shares of our common stock will be entitled to receive pro rata our remaining assets available for distribution. 
Other Rights 
Holders of shares of our common stock do not have preemptive, subscription, redemption or conversion rights. Shares of our common stock will not be subject to further calls or assessment by us. There will be no redemption or sinking fund provisions applicable to shares of our common stock. The rights, powers, preferences and privileges of holders of shares of our common stock will be subject to those of the holders of any shares of our preferred stock that we may authorize and issue in the future. 
Transfer Agent

The transfer agent and registrar for shares of our common stock is Computershare Shareowner Services. 
Listing
Our common stock is listed on the New York Stock Exchange (the “NYSE”) under the symbol “OMI.” 
Preferred Stock 
Our amended and restated articles of incorporation authorize our board of directors to establish one or more series of shares of preferred stock (including shares of convertible preferred stock). Unless required by law or by the NYSE, the authorized shares of preferred stock will be available for issuance without further action by our shareholders. Our board of directors is able to determine, with respect to any series of shares of preferred stock, the powers (including voting powers), preferences and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions thereof, including: 
 
	
				
	 
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	the rate of dividend, the time of payment and the dates from which any dividends shall be cumulative and the extent of participation rights, if any;

 
	
				
	 
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	any right to vote with holders of shares of any other series or class and any right to vote as a class either generally or as a condition to specified corporate action, subject to certain limitations;

 
	
				
	 
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	the price at which and the terms and conditions upon which shares may be redeemed;

 
	
				
	 
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	the amount payable upon shares in the event of involuntary or voluntary liquidation;

 
	
				
	 
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	sinking fund provisions of the redemption or purchase of shares, if any; and

 
	
				
	 
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	the terms and conditions upon which shares may be converted, if the shares of any series are issued with the privilege of conversion.

Anti-Takeover Provisions 
Certain provisions in our amended and restated articles of incorporation and our amended and restated bylaws, as well as certain provisions of Virginia law, may make more difficult or discourage a takeover of our business or removal of our incumbent directors or officers. 
Certain Provisions of Our Amended and Restated Articles of Incorporation and Amended and Restated Bylaws 
Election and Removal of Directors; Vacancies. Each of our directors is elected by the vote of a majority of the votes cast at any meeting of shareholders for the election of directors at which a quorum is present, provided that if the number of director nominees at such meeting exceeds the number of directors to be elected, the directors are elected by a plurality of the votes cast. Under our amended and restated bylaws, a majority of the votes cast means that the number of shares voted “for” a director must exceed the number of shares voted “against” that director. 
Our directors are elected for one-year terms and can be removed, with or without cause, if the number of votes cast for removal at a shareholder meeting called for that purpose at which a quorum is present constitutes a majority of the votes entitled to be cast at an election of directors. Our amended and restated bylaws currently provide that the total number of directors is 11. The number of directors may be increased or decreased by amendment of our amended and restated bylaws. 

Vacancies in the board may be filled by shareholders or by the board. Subject to the rights of any preferred stock, any vacancy on our board of directors resulting from any death, resignation, retirement, disqualification, removal from office or newly created directorship resulting from an increase in the authorized number of directors or otherwise may be filled by majority vote of the remaining directors then in office, even if less than a quorum, or shareholders. 
Special Meetings of Shareholders. Special meetings of shareholders may be called at any time and from time to time only by the chairman of our board of directors, our chief executive officer or by a majority of the board of directors. 
Advance Notice Requirements for Shareholder Director Nominations and Shareholder Business. Our amended and restated bylaws require that advance notice of shareholder director nominations and shareholder business for annual meetings be made in writing and given to our corporate secretary, together with certain specified information, not later than 120 days before the anniversary of the immediately preceding annual meeting of shareholders, subject to other timing requirements as specified in our amended and restated bylaws. 
 
Authorized but Unissued Capital Stock. Our amended and restated articles of incorporation currently authorize more capital stock than we have issued. The listing requirements of the NYSE, which will apply so long as our common stock remains listed on the NYSE, require shareholder approval of certain issuances equal to or exceeding 20% of then-outstanding voting power or then-outstanding number of shares of common stock. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions. 
One of the effects of the existence of unissued and unreserved common stock or preferred stock may be to enable our board of directors to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our company by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly deprive the shareholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices. 
Certain Provisions of Virginia Law 
Control Share Acquisitions Statute. Virginia law contains provisions relating to “control share acquisitions,” which are transactions causing the voting power of any person acquiring beneficial ownership of shares of a Virginia public corporation to meet or exceed certain threshold percentages (20%, 33 1/3% or 50%) of the total votes entitled to be cast for the election of directors. Under Virginia law, shares acquired in a control share acquisition have no voting rights unless granted by a majority vote of all outstanding shares entitled to vote in the election of directors other than those held by the acquiring person or held by any officer or employee director of the corporation, unless at the time of any control share acquisition, the articles of incorporation or bylaws of the corporation provide that this statute does not apply to acquisitions of its shares. An acquiring person that owns 5% or more of the corporation’s voting stock may require that a special meeting of the shareholders be held, within 50 days of the acquiring person’s request, to consider the grant of voting rights to the shares acquired or to be acquired in the control share acquisition. If voting rights are not granted and the corporation’s articles of incorporation or bylaws permit, the acquiring person’s shares may be redeemed by the corporation, at the corporation’s option, at a price per share equal to the acquiring person’s cost. Unless otherwise provided in the corporation’s articles of incorporation or bylaws, the Virginia law grants appraisal rights to any shareholder who objects to a control share acquisition that is approved by a vote of disinterested shareholders and that gives the acquiring person control of a majority of the corporation’s voting shares. As permitted by Virginia law, we have opted out of the Virginia anti-takeover law regulating control share acquisitions. 
Affiliated Transactions Statute. Virginia law also contains provisions governing “affiliated transactions.” An affiliated transaction is generally defined as a merger, a share exchange, a material disposition of corporate assets not in the ordinary course of business, any dissolution of the corporation proposed by or on behalf of a holder of more than 10% of any class of the corporation’s outstanding voting shares (a “10% holder”) or any reclassification, including reverse stock splits, recapitalization or merger of the corporation with its subsidiaries, that increases the 

percentage of voting shares owned beneficially by a 10% holder by more than 5%. In general, these provisions prohibit a Virginia corporation from engaging in affiliated transactions with any 10% holder for a period of three years following the date that such person became a 10% holder unless (1) the board of directors of the corporation and the holders of two-thirds of the voting shares, other than the shares beneficially owned by the 10% holder, approve the affiliated transaction or (2) before the date the person became a 10% holder, the board of directors approved the transaction that resulted in the shareholder becoming a 10% holder. Virginia law permits corporations to opt out of the affiliated transactions provisions. We have not opted out of the Virginia anti-takeover law regulating affiliated transactions. 
Shareholder Action by Unanimous Consent. Virginia law provides that, unless provided otherwise in a Virginia corporation’s articles of incorporation, any action that could be taken by shareholders at a meeting may be taken, instead, without a meeting and without notice if a consent in writing is signed by all the shareholders entitled to vote on the action. Our amended and restated articles of incorporation do not include a provision that permits shareholders to take action without a meeting other than by unanimous written consent. 
 
Limitations on Liability and Indemnification of Officers and Directors 
Virginia law permits, and our amended and restated articles of incorporation provide for, the indemnification of our directors and officers with respect to certain liabilities and expenses imposed upon them in connection with any civil, criminal or other proceeding by reason of having been a director or officer of our company. This indemnification does not apply in the case of willful misconduct or a knowing violation of the criminal law. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, indemnification for liabilities under the Securities Act is against public policy and is unenforceable.exhibit101sneadexecsever

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521                                             CONFIDENTIAL                          EXECUTIVE SEPARATION AGREEMENT & GENERAL RELEASE                              This Confidential Executive Separation Agreement & General Release (the “Agreement”)            is entered into as of the Effective Date (as defined in Section 13 below), by and between Robert            K. Snead (“Executive”) and Owens & Minor, Inc. (together with all Related Entities (as defined            herein), “O&M” or the “Company”) (Executive and O&M are each referred to herein as a “Party”           and, collectively, as the “Parties”) and in light of the following circumstances:                              WHEREAS, Executive has been employed by and an officer of the Company, most recently            as its Executive Vice President and Chief Financial Officer;                              WHEREAS, Executive has, at the request of the Company, resigned from his employment            with the Company effective December 31, 2019 (the “Separation Date”) and stepped down from            all officer and director roles effective November 1, 2019;                              WHEREAS, this Agreement is a condition precedent to Executive’s receipt of severance            benefits under the Owens & Minor, Inc. Officer Severance Policy (the “Policy”).                              NOW, THEREFORE, in consideration of the Parties’ promises and obligations hereunder,            and other good and valuable consideration, the receipt and sufficiency of which is hereby            acknowledged, the Parties agree as follows:                           1. Separation Date.                   a.    Executive’s last day of employment with the Company was the Separation Date,            and Executive acknowledges and agrees that his employment relationship with the Company            ended on such date. Executive further acknowledges and agrees that this Agreement shall be            deemed and shall be immediately effective as Executive’s resignation as Executive Vice President            and Chief Financial Officer, and from all other officer, director, or other positions with Owens &            Minor, Inc. and all Related Entities. For purposes of this Agreement, “Related Entities” means            Owens & Minor, Inc.’s subsidiary and affiliated entities and each of their predecessors.                   b.    Executive understands and acknowledges that some matters that fell under            Executive’s responsibility in his position with the Company may be ongoing after the Separation            Date.  Accordingly, Executive agrees that for a period of six (6) months after the Separation Date            Executive will cooperate and make himself reasonably available to Company representatives to            respond to questions regarding Executive’s experience with and knowledge about the Company.            Additionally, Executive agrees that he will, for a reasonable fee, assist O&M, as reasonably            requested by the Company, in the case of any litigation, regulatory inquiry, audits, or other such                                                Page 1 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             matters. Executive reserves the right to decline a request or demand for assistance by the            Company of Executive that unreasonably interferes or is in material conflict with, or otherwise            materially compromises, Executive’s professional responsibilities as an employee of another            employer or as a director or officer of another entity.                2. Accrued Benefits.                   a.    The Company shall pay Executive his normal base salary earned through the            Separation Date in accordance with its usual payroll practices.                   b.    The Company shall reimburse Executive for any expenses incurred by Executive            prior to the Separation Date related to his employment with the Company, subject to the            requirements of the Company’s expense reimbursement policy and preapproval of any travel            related to Company business by the Company’s Chief Executive Officer. All such reimbursement            will be made in accordance with the Company’s expense reimbursement policy.                    c.    Executive acknowledges and agrees that as of the Separation Date, except as            otherwise set forth in this Agreement, the Company shall have no obligation to continue            Executive’s coverage under the Company’s medical, dental, life insurance, or other employee            insurance or benefit plans; provided, however, that Executive will be eligible for COBRA coverage            to the extent required by applicable law. Executive understands and acknowledges that COBRA            coverage will be at Executive’s sole expense and will be offered at 102% of the full cost of            coverage.  Executive will receive applicable COBRA election forms under separate cover following            the Separation Date.                  d.    The Parties acknowledge and agree that, subject to the Company’s compliance            with the terms of this Agreement, the Company has paid or will pay to Executive in full all accrued            salary, expenses, reimbursements, vacation, sick leave, and other payments to which Executive            is or may have been entitled, and that there will be no sums or other benefits, other than as            described in this Agreement, due or owing to Executive by the Company.               3. Severance Benefits.                   a.      In consideration of Executive’s promises, covenants and agreements set forth in            this Agreement (including but not limited to the covenants regarding Confidentiality, Non-           Competition and Non-Solicitation), and in accordance with Section 5 of the Policy, the Company            shall provide Executive with the payments and benefits set forth in this Section 3 (collectively,            the “Severance Benefits”). Executive acknowledges and Agrees that Executive would not be           entitled to the Severance Benefits in the absence of Executive’s acceptance of this Agreement           and adherence with its terms.                  b.    The Company shall pay Executive a lump-sum in the gross amount of EIGHT            HUNDRED FIFTY-THREE THOUSAND, EIGHT HUNDRED THIRTY-NINE DOLLARS AND NO CENTS            ($853,839.00), less all applicable withholdings and deductions, which equates to one and one-           half (1 1⁄2) times the sum of the amount of Executive’s annual salary as of the Separation Date            plus the average of Executive’s annual bonus for the last three completed years. The Company                                                Page 2 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             shall make this payment on the first regularly scheduled Company payday following the Effective           Date of this Agreement. For purposes of this Agreement, “Severance Period” shall mean the            eighteen (18) month period immediately following the Separation Date.                  c.    The Company shall pay Executive a lump-sum cash Welfare Benefit Payment (as            defined in the Policy) equal to FIFTEEN THOUSAND FOUR HUNDRED FIFTY-FIVE DOLLARS AND NO            CENTS ($15,455.00), less all applicable withholdings and deductions. The Company shall make            this payment on the first regularly scheduled Company payday following the Effective Date.                  d.    Executive will receive a pro-rated amount of his unvested restricted stock awards            based on his Separation Date as provided by the applicable plan documents and award            agreements. Executive currently holds 106,997 unvested shares of restricted stock in the            Company (the “Restricted Stock”) issued and outstanding under O&M’s 2015 Stock Incentive Plan            and/or 2018 Stock Incentive Plan (as amended). Under the applicable plan and award            agreements, the restrictions on 44,222 shares will lapse and such shares shall become vested to            Employee as of the Effective Date. The remaining 62,775 shares of Restricted Stock shall be            forfeited. Executive understands and agrees that all of his outstanding performance share awards            shall not be affected by this Agreement and shall remain subject to the not for cause termination            and other terms and provisions of the applicable performance share award agreements.                  e.    Provided this Agreement is binding and effective, the Company shall reimburse            Executive for (i) expenses incurred from November 1, 2019 through June 30, 2020, in procuring            outplacement services in an amount not to exceed TEN THOUSAND DOLLARS ($10,000.00), and            (ii) expenses incurred from November 1, 2019 through June 30, 2020, prior to the            commencement of alternate employment for tax preparation related to 2019 and financial            counseling services (including but not limited to the services of a tax attorney) in an amount not            to exceed FIVE THOUSAND TWO HUNDRED FIFTY DOLLARS ($5,250.00), in each case conditioned            upon Executive providing the Company with proper and timely documentation of such expenses.                  f.    Provided this Agreement is binding and effective, the Company shall reimburse to            Executive actual expenses incurred by Executive (up to a cumulative amount not to exceed TEN            THOUSAND DOLLARS ($10,000.00)) for legal services arising from or related to Executive’s            separation from employment with the Company, including legal counsel’s negotiation and            drafting of, and provision of advice regarding, this Agreement (“Legal Services            Reimbursements”). The Company’s payment of the Legal Services Reimbursement is conditioned            upon the Executive providing the Company with documentation of such expenses, redacted to            conceal all narrative that is subject to the attorney-client privilege, that contains attorney work            product or mental impressions, or that addresses or references any matter of a private or            confidential nature.                  g.    Any amount described in this Section 3, to the extent earned, shall be paid to            Executive in no event later than the fifteenth day of the third month following the end of the year            in which such amount was no longer subject to a substantial risk of forfeiture, within the meaning                                                Page 3 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             of Code Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), except as            may be permitted pursuant to Treasury Regulation Section 1.409A-1(b)(4)(ii).                 4. Covenant to Maintain Confidentiality.                   a.    During his employment with the Company, Executive has been exposed to certain            Confidential Information of the Company. For purposes of this Agreement “Confidential            Information” means information, in any form, related to the Company’s business (i) that is not            generally known or available to others in the Company’s industry, (ii) in which the Company has            an interest, (iii) from which the Company derives value by virtue of – in whole or in part – its            confidentiality, and (iv) with respect to which the Company takes reasonable measures to            maintain as confidential. Such Confidential Information includes but is not limited to:             information technology and computer systems; trade secrets; financial or investor relations            information; sales activity information; accounting information; revenue recognition            information; cash-flow information; lists of and other information about current and prospective            customers, vendors or suppliers; prices or pricing strategy or information; sales and account            records; reports, pricing, sales manuals and training manuals regarding selling, strategic planning            and business development information; purchasing, and pricing procedures and financing            methods of the Company, together with any specific and proprietary techniques utilized by the            Company in designing, developing, testing or marketing its products, product mix and supplier            information or in performing services for clients, customers and accounts of the Company;            information concerning existing or contemplated software, products, services, technology,            designs, processes and research or product developments of the Company; and, any other            information of a similar nature made available to Executive and not known to the public, which,            if misused or disclosed, could adversely affect the business or interests of the Company.            Confidential Information includes any such information that Executive may have prepared or            created during his employment with the Company, as well as such information that has been or            may be created or prepared by others.  Confidential Information shall not include any information            that has been voluntarily disclosed to the public by the Company, has been independently            developed and disclosed to the public by others without violating any legal obligation, or            otherwise enters the public domain through lawful means.                   b.    Subject to the limited exclusions and limitations set forth in this Agreement,            Executive agrees that for as long as such information remains confidential to the Company,            including after the Severance Period, or is a trade secret under applicable law, Executive will not            disclose any Confidential Information to any person, agency, institution, company, or other            entity, and Executive will not use any Confidential Information in any way, except as required by            my duties to the Company or by law, or as permitted under Section 9  of this Agreement.  In the            event that Executive is unsure whether or not certain information is Confidential Information,            Executive will send the Company a written inquiry about whether such information is covered            under this Agreement.                                                 Page 4 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521                   c.    Notwithstanding anything to the contrary contained herein, this Agreement does            not prohibit Executive from complying with a lawful subpoena or other legal compulsion. If            Executive becomes legally compelled (by interrogatories, requests for information or documents,            subpoenas, civil investigative demands, applicable regulations, or similar processes) to disclose            any Confidential Information, Executive shall, if permitted by applicable law, provide Company            with prompt notice so that Company may seek an appropriate protective order or other            appropriate remedy or waive Executive’s compliance with this Section 4, which waiver must be            in writing to be effective.  If a protective order or other remedy is not obtained by the Company            by the date that Executive must comply with the request, or if Company waives compliance with            this Section 4 in writing, Executive shall furnish only that portion of the Confidential Information            that Executive is legally required to produce in the reasonable opinion of Executive’s counsel            (after consultation with Company’s counsel, if allowed by law).  The Parties agree that Executive’s            obligations under this Section 4 are expressly limited by the provisions of Section 9 of this            Agreement.                 5. Covenant not to Compete.                   a.    During the Severance Period, Executive agrees not to engage in Competitive Work            for or on behalf of a Competitor to conduct or support the conduct of Competitive Business            within the continental United States.  Notwithstanding the foregoing, this Section 5 does not            restrict Executive from owning stock or other securities of a publicly held corporation in which            Executive does not possess beneficial ownership of more than 2% of the voting stock of any            enterprise (but without otherwise participating in the activities of such enterprise) if such            securities are listed on any national or regional securities exchange or have been registered under            Section 12(g) of the Securities Exchange Act of 1934, whether or not such enterprise is a            Competitor (as defined below).                   b.    For purposes of this Agreement, “Competitive Business” means providing or            soliciting to provide a product or service that competes with a product or service provided,            offered or planned to be offered by O&M at any time during the last twelve (12) months of            Executive’s employment with the Company (the “Recent Period”). “Competitive Work” means           the performance of duties and/or provision of services (whether as an employee, independent           contractor or otherwise) that are substantially similar to duties and/or services that Executive           performed or provided for or on behalf of O&M at any time during the Recent Period.           “Competitor” means each entity listed on Exhibit A attached hereto and any parent,  subsidiary           or affiliated entity of each of them that is engaged in Competitive Business.                   c.    Executive understands and agrees, and the Company intends, that nothing in this            Section 5 shall prevent Executive from performing services or activities for or on behalf of a            Competitor that are not the same as or similar to the services and activities Executive performed            for an O&M Company. Further, the Parties agree that the restrictions of this Section 5 shall not            prevent Executive from seeking or accepting employment, or performing services or activities, in                                                Page 5 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             any capacity with a Covered Customer or a Covered Supplier (as defined below) that is not            identified as a Competitor in Exhibit A attached hereto.                    d.    Prior to providing services or activities to any person or business that Executive            believes may be restricted or prohibited by this Section 5,  Executive may request the Company’s            written approval of the Executive’s provision of services or activities to such person or business.                6. Non-Solicitation of Customers & Suppliers.                   a.    During the Severance Period, Executive agrees that he will not, personally or            through another, conduct or offer to conduct any Competitive Business with any Covered            Customer, or encourage or induce any Covered Customer or Covered Supplier to cease doing            business with the Company or change the terms of an existing business relationship with the            Company to the material detriment of the Company. Notwithstanding the foregoing, this Section            6 does not prohibit general advertising or solicitation that is not specifically directed to a Covered            Customer(s) or Covered Supplier(s).                    b.    For purposes of this Agreement, (i) “Covered Customer” means any individual or            entity with which O&M, at any time during the Recent Period, has conducted, or made a written            or in-person proposal to conduct, business or to which the Company has provided or offered to            provide goods or services, and with whom or which Executive had Material Contact, (ii) “Covered            Supplier” means any manufacturer or supplier of medical or surgical products or devices with            which O&M, at any time during the Recent Period, has conducted or made a written or in-person            proposal to conduct business, and with which Executive had Material Contact, and (iii) “Material            Contact” means that (x) Executive personally communicated with a person or entity employed or           engaged by, or representing, a Covered Customer or Covered Supplier, either orally or in writing,           regarding an O&M company or the products or services of, or provided to, an O&M company, or           (y) Executive received Confidential Information regarding a Covered Customer or Covered           Supplier, in each instance, at any time during the Recent Period.                   c.    Nothing in this Section 6 is intended to prohibit Executive’s employment by a            Covered Customer or Covered Supplier that is not identified in Exhibit A hereto, provided            Executive, during the Severance Period, does not personally or through another directly or            indirectly encourage or induce such employer to cease doing business with the Company or            change the terms of an existing business relationship with the Company to the material            detriment of the Company.               7. Non-Solicitation of Workers. During the Severance Period, Executive agrees that he will            not, personally or through another, solicit for employment or hire a Covered Worker for            employment or engagement by any person or entity other than O&M or encourage a Covered            Worker to leave employment with the Company. Notwithstanding the foregoing, the restrictions            contained in this Section 7 shall not apply to any individual that has been separated from            employment with the Company for six (6) months or more as of the time of recruitment,            solicitation or hiring by Executive. This Section 7 also does not prohibit general advertising or                                                Page 6 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             solicitation not specifically directed to a Covered Worker or Covered Workers. For purposes of            this Agreement, “Covered Worker” means any person who at any time during the Recent Period            (i) was employed or engaged by the Company; and (ii) had business-related contact with or            reported to Executive.               8. Non-Disparagement.                   a.    Executive agrees that during the Severance Period he will refrain from printing or            communicating any comments to any person, audience, or assembly of persons, including            shareholders of O&M (but exclusive of his family members; personal banking, financial, and tax            professionals; and attorneys), or to the print or broadcast media, or in any form of electronic,            Internet, or social media communications, that may reasonably be interpreted as disparaging of            the Releasees (as defined below).  Similarly, O&M agrees that during the Severance Period the            Officers and Directors of OMI shall refrain from printing or communicating any comments to any            person, audience, or assembly of persons (but exclusive of officers or directors of the Company            or O&M’s banking, financial, and tax professionals; and attorneys), or to the print or broadcast            media, or in any form of electronic, Internet, or social media communications, that may            reasonably be interpreted as disparaging of Executive.                   b.    For purposes of this Agreement, “disparaging” is defined to mean critical,            derogatory, deprecating, detracting, or pejorative, or harmful to or impugning the business,            professional, or personal reputation or integrity of another.  Further, these provisions are in            addition to, and not in lieu of, the substantive protections under applicable law relating to            defamation, libel, slander, interference with contractual or business relationships, or other            statutory, contractual or tort theories.                    c.    Notwithstanding the foregoing, Executive and O&M understand and agree that            their obligations under this Section 8 are expressly limited by the provisions of Section 9 of this            Agreement. Further, nothing herein shall be construed to require Executive or O&M or any other            person to engage in any unlawful act.               9. Limitations on Obligations. Nothing in this Agreement shall prohibit or impede Executive            from communicating, cooperating or filing a complaint with any U.S. federal, state or local            governmental or law enforcement branch, agency or entity (each, a “Governmental Entity”) with            respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise            making disclosures to any Governmental Entity, in each case, that are protected under the            whistleblower provisions of any such law or regulation, provided that in each case such            communications and disclosures are consistent with applicable law.  Executive does not need the           prior authorization of (or to give notice to) the Company regarding any such communication or           disclosure.  This Agreement also does not limit Executive’s right to receive an award for           information provided to any federal, state or local government agency or self-regulatory           organization, or to engage in any future activities protected under whistleblower statutes.           Additionally, Executive hereby confirms that she or he understands and acknowledges that an                                                Page 7 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             individual shall not be held criminally or civilly liable under any federal or state trade secret law            for the disclosure of a trade secret that is made in confidence to a federal, state, or local            government official or to an attorney solely for the purpose of reporting or investigating a            suspected violation of law, or in a complaint or other document filed in a lawsuit or other            proceeding, if such filing is made under seal. Executive understands and acknowledges further            that an individual who files a lawsuit for retaliation by an employer for reporting a suspected            violation of law may disclose the trade secret to the attorney of the individual and use the trade            secret information in the court proceeding, if the individual files any document containing the            trade secret under seal; and does not disclose the trade secret, except pursuant to court            order.  Notwithstanding the foregoing, under no circumstance will Executive be authorized to            disclose any information covered by the Company’s attorney-client privilege or the Company’s            attorney work product without prior written consent of the Company’s General Counsel or other            officer designated by the Company, or unless such disclosure of that information would            otherwise be permitted pursuant to 17 CFR 205.3(d)(2), applicable state attorney conduct rules,            or otherwise under applicable law or court order.               10. Reasonableness & Remedies.                  a.    The covenants contained in Sections 4, 5, 6, 7 & 8 of this Agreement (the            “Protective Covenants”) are, in light of the nature of Executive’s employment by the Company,            reasonable and necessary for the protection of the Company’s legitimate business interests,            specifically including the Company’s interest in the Confidential Information and the Company’s            significant investment to develop and maintain its business relationships and goodwill.                  b.    The Company will suffer irreparable harm if Executive breaches any provision of            the Protective Covenants, and the Company shall be entitled to, in addition to any other available            remedies, temporary and/or permanent injunctive relief against Executive barring any conduct            in violation of any provision of the Protective Covenants. Additionally, the duration of the            restrictions in the Protective Covenants shall be extended by the length of time Executive is in            breach of any such restriction. No claim or cause of action Executive may have or assert against            the Company, whether predicated on this Agreement or otherwise, shall serve as or constitute a            defense to the enforcement of any provision of the Protective Covenants.                  c.     A Party wishing to file a suit or action against the other for a material breach of           this Agreement, including the provisions of the Protective Covenants (“Claimant Party”), shall not            file such suit or action before the expiration of thirty (30) days next following the delivery by the            Claimant Party to the other of written notice of the alleged material breach (“Waiting Period”).             Such written notice by the Claimant Party to the other party shall include, in reasonable detail            and to the best of the Claimant Party’s knowledge and belief, the factual bases for the claim of            alleged material breach of the provisions of this Agreement (the “Notice of Claims”).             Notwithstanding the foregoing, the Waiting Period shall not apply to the Company’s pursuit of            temporary injunctive or similar equitable relief for alleged violation of the Protective Covenants                                                Page 8 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521                   d.    No suit or action by a Claimant Party for a material breach of this Agreement,            including the provisions of the Protective Covenants of this Agreement, or for any remedies            associated with such material breach, including injunctive relief or any other legal or equitable            remedy, shall be filed, allowed, or granted in any court of law or equity unless such suit or action            is commenced within one (1) year following the date that the Claimant Party knew of such            material breach.                     e.    The Parties agree that in any action arising out of or relating to this Agreement,            including any claims or counterclaims brought by either Party to enforce its terms, the Party that            substantially prevails in such action shall be entitled to recover the reasonable attorneys’ fees            and costs incurred by such Party in connection with such action.                11. General Release.                   a.    For purposes of this Agreement, “Releasee” and “Releasees” means the Company           and any and all O&M boards, past and present directors, trustees, officers, shareholders,           members, partners, managers, supervisors, employees, attorneys, agents, representatives,            insurers and consultants, as well as the predecessors, successors and assigns of any of them, and            all persons or entities acting by, with, through, under or in contract with any of them. Except as            specifically provided below, for purposes of this Agreement the term “Claims” means: each and            every claim, complaint, cause of action, grievance, demand, controversy, allegation, or            accusation, whether known or unknown; each and every promise, assurance, contract,            representation, obligation, guarantee, warranty, liability, right, agreement and commitment of            any kind, whether known or unknown; and all forms of relief, including, but not limited to, all            remedies, costs, expenses, losses, damages, debts and attorneys’ and other professionals’ fees            and related disbursements, whether known or unknown. Notwithstanding the foregoing, Claims            do not include a charge of discrimination with the Equal Employment Opportunity Commission            (“EEOC”). Thus, this Agreement does not preclude Executive from filing an EEOC charge or            participating in an EEOC investigation.                  b.    Subject to the limited exclusions and limitations set forth below and in Section 9            of this Agreement, Executive hereby irrevocably releases and forever discharges all Releasees            from any and all Claims that Executive, or anyone on his behalf ever had or now has against any            and all of the Releasees, or which Executive, or any of his executors, administrators,            representatives, attorneys or assigns, hereafter can, shall or may have against any and all of the            Releasees for or by reason of any cause, matter, thing, occurrence, or event whatsoever from the            date of Executive’s birth to the date that Executive signs this Agreement. Executive acknowledges            and agrees that the Claims released in this paragraph include, but are not limited to, (a) any and            all Claims based on any law, statute, or constitution or based on contract or in tort or in common            law, and any and all Claims based on or arising under any civil rights laws, such as the civil rights            laws of any state or jurisdiction, Title VII of the Civil Rights Act of 1964, the Age Discrimination in            Employment Act (“ADEA”), the Equal Pay Act, the Americans with Disabilities Act of 1990, the                                                Page 9 of 17             

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             Civil Rights Act of 1991, the Family Medical Leave Act, or the Virginia Human Rights Act; (b) any            and all Claims under any grievance or complaint procedure of any kind; and (c) any and all Claims            based on or arising out of or related to Executive’s recruitment by, employment with, the            termination of Executive employment with, or Executive’s performance of any service in any            capacity for, or any business transaction with, each or any of the Releasees (collectively, the            “Released Claims”). Executive also hereby waives any and all right to personal recovery of money            damages or other relief for any of the Claims released by this Section 11. Executive hereby            represents and warrants that he has not assigned any claim to any third party.                   c.    Notwithstanding the foregoing, Executive does not release or waive, and Released            Claims shall not include:                       i.  Any rights Claims, or protections that Executive may have under this                           Agreement;                        ii.  Any rights, Claims, and protections based on any cause, matter, thing, or event                           arising or occurring at any time after Executive signs this Agreement;                       iii. Executive’s rights, Claims, and protections, if any, to vested or guaranteed                           benefits under the Company’s qualified and non-qualified benefit plans,                           including, without limitation, the Management Equity Ownership Program,                           the Executive Deferred Compensation and Retirement Plan, restricted and                           unrestricted stock awards, stock options, stock appreciation rights, stock units,                           and incentive awards, and all other vested retirement, executive                           compensation, deferred compensation, and stock grant or option plans;                      iv. Any rights, Claims, or protections that Executive may have under his Executive                          Severance Agreement with the Company and the change-in-control provisions                          therein;                      v.  Any rights, Claims, or protections Executive may have under the applicable                          terms of such policy or plan to convert his existing coverage under any group                          life, disability, and/or accidental death and dismemberment plan offered by                          the Company;                        vi. Any rights, Claims, or protections Executive may have to continuation of group                          health, dental, or vision insurance as provided by the Consolidated Omnibus                          Budget Reconciliation Act of 1985 (“COBRA”), as amended by the Health                          Insurance Portability and Accountability Act of 1996 and the American                          Recovery and Reinvestment Act of 2009;                     vii. Any rights, Claims, or protections Executive has, had, or may have under                          Article V of the Amended and Restated Articles of Incorporation of Owens &                          Minor, Inc. (“Articles of Incorporation”), including the indemnification and                          advancement provisions contained therein, as of the Effective Date of this                          Agreement;                                                Page 10 of 17            

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521                      viii. Any rights, Claims, or protections Executive has, had, or may have under any                           policy or contract of indemnification, liability or other type of insurance, or                           other undertaking from and/or against any Claims asserted, liability incurred,                           or proceeding initiated or maintained against Executive arising from, related                           or pertaining to, or serving as its basis or their bases, Executive’s capacity as                           an officer of the Company or his alleged acts, omissions, or inaction in such                           capacity, the foregoing being without regard to whether the Company has,                           had, or may have the power or obligation to indemnify Executive or provide                           advancements against such liability under Article V of the Articles of                           Incorporation; or                      ix.  Any rights, Claims, or protections that Executive may have arising under the                           Age Discrimination in Employment Act of 1967 (“ADEA”), or the Older Workers                           Benefit Protection Act of 1990, which amends the ADEA, after Executive signs                           this Agreement; or                      x.   Any rights, Claims or protections that Executive, by law, is prohibited from                           releasing under this Agreement.                  d.    Indemnification and Advancement Obligations of O&M.  Notwithstanding any            provision of this Agreement to the contrary, O&M reaffirms and restates its obligations to            Executive under Article V of its Articles of Incorporation, amended and current as of the           Separation Date, including the indemnification and advancement provisions contained           therein.  In no way limiting the foregoing, and as an inducement to Executive’s acceptance and           execution of this Agreement, O&M acknowledges and agrees that as of the date that it executes           this Agreement (a) the Company’s officers and directors are not aware of any actions, omissions,           or inaction by Executive that would negate Executive’s rights to indemnification and           advancements under the Articles of Incorporation of O&M; and (b) the Company’s officers and           directors are not aware of any actions, omissions, or inaction by Executive that could give rise to           any Claims by O&M or its Related Entities against Executive.               12. No Admission. The offer of this Agreement and the Agreement itself are not an admission,            and shall not be construed to be an admission, by each or any of the Releasees, that the            personnel, employment, termination and any other decisions involving Executive or any conduct            or actions at any time affecting or involving Executive were wrongful, discriminatory, or in any            way unlawful or in violation of any right of Executive; moreover, any such liability or wrongdoing            is denied by Executive. Executive shall not attempt to offer this Agreement or any of its terms as            evidence of any liability or wrongdoing by each or any of the Releasees in any judicial,            administrative or other proceeding now pending or hereafter instituted by any person or entity.               13. Period for Review & Revocation. Executive acknowledges that he has been afforded            twenty-one (21) days after receiving this Agreement to consider whether or not to enter into it.            Executive may use as much or as little of this 21-day period as Employee wishes to decide                                               Page 11 of 17            

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             whether or not to sign this Agreement. Executive may revoke this Agreement within seven (7)            days of signing it by delivering a written notice of revocation to the Company’s General Counsel            at 9120 Lockwood Boulevard, Mechanicsville, Virginia 23116.  For a revocation to be effective,            written notice must be received no later than the close of business on the seventh (7th) day after            Executive signs this Agreement.  If Executive revokes this Agreement, it shall not be effective or            enforceable, and the Company shall not be obligated to provide Employee any benefits            hereunder.  If Executive has not revoked the Agreement, the eighth (8th) day after Executive signs            this Agreement shall be the “Effective Date” for purposes of this Agreement.               14. Encouragement to Consult with an Attorney. The Company has advised Executive to            consult an attorney about this Agreement before signing it. By signing this Agreement, Executive            represents that he has consulted with an attorney about this Agreement or has voluntarily            chosen not to do so.  Executive acknowledges and agrees that, except as expressly provided for            in this Agreement, the Company is not obligated to pay any of Executive’s attorneys’ fees, costs            or expenses relating to this Agreement and that the release in Section 11, above, releases, among            other things, all Claims for attorneys’ fees, costs and expenses. Executive acknowledges that he            is signing this Agreement voluntarily, with full knowledge of the nature and consequences of its            terms and without duress or undue influence by the Company or any other person or entity.               15. No Release of Future Claims. This Agreement does not waive or release any rights or            claims that Employee may have under the ADEA or otherwise which arise after the date that            Employee signs this Agreement. The parties acknowledge and agree that the decision to end            Employee’s employment with the Company was made prior to Employee signing this Agreement.               16. Taxes; Section 409A. The Company will withhold from any amounts due Executive under            this Agreement payroll deductions as required by law and determined by the Company. Executive            understands and acknowledges that he is responsible for all taxes that he may incur with respect            to any of the consideration to be delivered to him under this Agreement. Notwithstanding any            other provision of this Agreement, it is intended that any payment or benefit provided hereto            that is considered nonqualified deferred compensation subject to Section 409A of the Code, will            be exempt from, or comply with or be provided or paid in a manner and at such time and in such            form as complies with the applicable requirements of,  Section 409A of the Code, and the            interpretive guidance thereunder, including, without limitation, the exemptions for short-term            deferrals, separation pay arrangements, reimbursements, and in-kind distributions.  This            Agreement shall be administered, interpreted and construed in a manner that does not result in            the imposition of additional taxes, penalties or interest under Section 409A of the Code. The            Company and Employee agree to negotiate in good faith to make amendments to the Agreement,            as the parties mutually agree are necessary or desirable to avoid the imposition of taxes,            penalties or interest under Section 409A of the Code. Neither the Company nor Employee will            have the right to accelerate or defer the delivery of any such payments or benefits except to the            extent specifically permitted or required by Section 409A of the Code.  Notwithstanding any other                                               Page 12 of 17            

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             provision of this Agreement, however, none of the Releasees shall be liable to Executive in the            event any provision of this Agreement fails to comply with, or be exempt from, Section 409A of            the Code.               17. Governing Law. The Company is a global business headquartered in the Richmond            metropolitan area of Virginia, and this contract was made in whole or in part in Virginia. This            Agreement shall be construed and enforced under the laws of the Commonwealth of Virginia,            without regard to its conflicts of law principles.               18. Forum Jurisdiction & Venue. The exclusive forums and venues for any Covered Claim,            shall be the federal courts located in Richmond, Virginia, and the state courts located in Henrico            County, Virginia (each a “Chosen Forum” and, collectively, the “Chosen Forums”); provided,            however, that the Company may, in its sole discretion, choose to bring a Covered Claim in any            other court located within a jurisdiction in which Executive resides or is employed and which has            jurisdiction over such Covered Claim.  Executive expressly and irrevocably consents and submits            to the personal jurisdiction of each Chosen Forum over Executive for any Covered Claim and            expressly agrees that venue for any Covered Claim is appropriate therein. Executive shall not file            any Covered Claim in any forum other than a Chosen Forum and waives any and all objections to            the jurisdiction of or venue in a Chosen Forum for a Covered Claim. A final judgment in any action            or proceeding in a Chosen Forum shall be conclusive and may be enforced in other jurisdictions            in accordance with applicable law; provided, however, that this Section 18 does not affect either            party’s right to appeal a judgment. Executive acknowledges that Executive has read this Section            18, understands it and has voluntarily agreed to its terms.               19. Waiver of Jury Trial. Executive knowingly and willfully waives any right he may have under            applicable law to a trial by jury in any dispute or issue arising out of or in any way related to a            Covered Claim.               20. Severability & Reformation.                   a.    The provisions of this Agreement, including the Protective Covenants, are            expressly intended to be severable and separately enforceable. If any clause or provision of this            Agreement is ruled invalid or limited by any regulatory agency or court of competent jurisdiction,            the invalidity of such clause or provision shall not affect the validity of the other provisions, which           provisions shall be enforced to the fullest extent permitted by law.                  b.    In the event that a court of competent jurisdiction determines that any provision            of the Protective Covenants is invalid or unenforceable under applicable law by reason of its            geographic, temporal or other scope, or the extent of restriction imposed on Executive’s activity,            the court making such determination shall reduce the applicable scope and/or the extent of            restriction by such amount as is minimally necessary to render such provision, as so amended,            valid and enforceable under applicable law.  Notwithstanding the foregoing, should it be            determined that the provisions of this Section 20.b are impermissible under applicable law then                                                Page 13 of 17            

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             this subsection shall be deemed null and void, and such determination shall not affect the validity            of the remainder of this Agreement.               21. Notices. All notices permitted or required under this Agreement shall be given in writing            and addressed or delivered to the persons specified in this Agreement.  Any notice or            communication required hereunder shall be given by hand; FedEx or UPS next-business-day            delivery service; registered, certified, or express United States mail (postage prepaid). The date            of receipt of any notice shall be the date the notice is deemed to have been given. Notices            permitted or required hereunder shall be given to the following individuals:                              Notices to the Company:                        Owens & Minor, Inc.                        Attn:  General Counsel                        9120 Lockwood Boulevard                        Mechanicsville, Virginia 23116                              Notices to Executive:                        Robert K. Snead                        [Address]                  With a copy to:                        Christian & Barton, LLP                        Attn:  Warren David Harless                        909 East Main Street                        Suite 1200                        Richmond, Virginia 23219                      Each Party may change the persons and addresses designated to receive notice hereunder by           written notice to the other Party in accordance herewith.               22. Entire Agreement & Modification. This Agreement contains the entire understanding and            agreement of the parties regarding the subject matter hereof. The terms of this Agreement are            contractual and, except as provided under Section 20.b hereof, shall not be deemed to have been            altered, modified or in any way changed by any statements, promises, discussions or agreements            not appearing herein. Except as provided under Section 20.b hereof, this Agreement may not be            modified, amended or altered except by a writing signed by both the parties.               23. Assignment. This Agreement shall be binding upon and inure to the benefit of the            Company and any corporation or other entity to which the Company may transfer all or            substantially all of its assets or to which the Company may assign this Agreement. Executive            hereby consents to any such assignment without further notice to or consent from Executive.                                               Page 14 of 17            

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             Executive may not assign this Agreement or any part hereof without the prior written consent of            O&M’s General Counsel.               24. Return of Company Property. Following the Separation Date, Executive will immediately            return to the Company any Company property and all such records without deleting, destroying,            or otherwise damaging the utility of same.               25. Miscellaneous. This Agreement may be executed in one or more counterparts each of            which will constitute one and the same instrument, and all executed copies of this Agreement            and facsimiles thereof shall be as legally binding and enforceable as the original. Executive’s            obligations under this Agreement shall survive the termination of Executive’s employment with            the Company regardless of the reason and any breach by the Company of this Agreement or any            other obligation of the Company. The waiver by any party of a breach of any condition or            provision of this Agreement to be performed by the other party shall not operate or be construed            as a waiver of a similar or dissimilar provision or condition at the same or any prior or subsequent            time. The captions and headings in this Agreement are included for convenience only and shall            not be construed to define or limit any of the provisions contained herein.                                                        -  SIGNATURE PAGE FOLLOWS -                                                                      Page 15 of 17            

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521             IN WITNESS WHEREOF, and intending to be legally bound, each of the parties has caused this            Confidential Executive Separation Agreement & General Release to be executed either            individually or in its entity name by its duly authorized representative.                        BY SIGNING BELOW, EXECUTIVE EXPRESSLY ACKNOWLEDGES THAT EXECUTIVE IS SIGNING THIS            AGREEMENT VOLUNTARILY AND OF HIS/HER OWN FREE WILL, WITH FULL KNOWLEDGE OF THE            NATURE AND CONSEQUENCES OF ITS TERMS. EXECUTIVE HAS READ THIS AGREEMENT            CAREFULLY AND UNDERSTANDS THAT IT CONTAINS A RELEASE OF ALL KNOWN AND            UNKNOWN CLAIMS.                                    ROBERT K. SNEAD                           OWENS & MINOR, INC.                                                                            By:                                                               1/10/2020           Date: _______________________________     Title: EVP  AND GC                                                                                         1/10/2020                                                     Date: _______________________________                                                                                                Page 16 of 17            

 

DocuSign Envelope ID: 84F27DBD-E575-4F17-95C5-79CEF31BE521                                               EXHIBIT A                                                                                           Prohibited Competitor List                        1. Cardinal Health, Inc.            2. Medline Industries, Inc.            3. Concordance Healthcare Solutions            4. Deutsche Post AG d/b/a DHL Supply Chain            5. FedEx Corporation            6. United Parcel Service, Inc.             7. Alloga            8. Mölnlycke Health Care           9. Hogy Medical           10. Multigate Medical Products           11. HARTMANN Group                                                                                                              Page 17 of 17

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