Document:

Exhibit

EXHIBIT 4.1

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

The following description of IDEXX Laboratories Inc.’s common stock is a summary. This summary is subject to the General Corporation Law of the State of Delaware (the “DGCL”) and the complete text of IDEXX Laboratories, Inc.’s restated certificate of incorporation, as amended (the “certificate of incorporation”), and amended and restated by-laws (the “by-laws”), which are filed as Exhibits 3.1 and 3.2, respectively, to our Annual Report on Form 10-K. We encourage you to read that law and those documents carefully.
General
Our certificate of incorporation authorizes us to issue up to 120,000,000 shares of common stock, par value $0.10 per share, and 500,000 shares of preferred stock, par value $1.00 per share, in one or more series.
Voting Rights
The holders of common stock as of the applicable record date are entitled to one vote per share on all matters to be voted upon by the stockholders. 
Our by-laws provide that nominees for director are elected by a majority of the votes cast in uncontested elections, and by a plurality vote standard in contested elections.  We have a resignation policy applicable to any nominee who is an incumbent director who fails to receive a majority of the votes cast in an uncontested election.   
Dividends
Subject to preferences applicable to any outstanding preferred stock, the holders of common stock are entitled to receive ratably such dividends as may be declared from time to time by the board of directors out of funds legally available for distribution.
Rights and Preferences 
In the event of our liquidation, dissolution or winding up, the holders of common stock are entitled to share in all assets remaining after payment of liabilities. The common stock has no preemptive or conversion rights and is not subject to further calls or assessments by us. There are no redemption or sinking fund provisions available to the common stock. 
Fully Paid and Nonassessable
The common stock currently outstanding is validly issued, fully paid and nonassessable.
Transfer Agent
The transfer agent and registrar for the common stock is American Stock Transfer and Trust Company.

Proxy Access
Our by-laws permit a stockholder, or a group of up to 20 stockholders, owning at least three percent of our outstanding common stock continuously for at least three years to nominate and include in our annual meeting proxy materials director nominees constituting up to the greater of two directors or twenty percent of our board of directors, provided that the stockholders and nominees satisfy the requirements specified in our by-laws.
Preferred Stock

Our board of directors has the authority, without stockholder consent, subject to certain limitations imposed by Delaware law, to issue one or more series of preferred stock at any time and to fix the rights, preferences and restrictions of the preferred stock of each series, including:
•the number of shares in that series;
•the dividend rate and whether dividends on that series of preferred stock will be cumulative, non-cumulative or partially cumulative;
•the voting rights, if any;
•conversion privileges, if any;
•whether that series will be redeemable;
•whether that series will have a sinking fund for the redemption or purchase of shares of that series;
•the liquidation preference per share of that series, if any; and
•any other relative rights, preferences and limitations.
Provisions of our Certificate of Incorporation, By-laws and Delaware General Corporation Law that May Have an Anti-Takeover Effect
Delaware law, our certificate of incorporation and our by-laws contain provisions that could have the effect of delaying, deferring or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors.
Board Structure
Our certificate of incorporation and our by-laws divide our board of directors into three classes with staggered three-year terms. However, each director is subject to removal by our stockholders during the director’s term, with or without cause, by the holders of at least seventy-five percent (75%) of the shares then entitled to vote at an election of directors. Our certificate of incorporation provides that, any vacancy on our board of directors, including a vacancy resulting from an increase in the number of directors, will be filled only by vote of a majority of our directors then in office, although less than a quorum, or by a sole remaining director. Our certificate of incorporation also provides that the number of directors is to be determined by our board of directors. The classification of our board of directors, the seventy-five percent (75%) vote requirement for the removal of directors, the board of director’s ability to determine the number of directors and fill vacancies could make it more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of our company.
Stockholder Action by Written Consent; Special Meetings
Our certificate of incorporation provides that any action required or permitted to be taken by our stockholders must be effected at a duly called annual or special meeting of such holders and may not be effected by written consent. Our certificate of incorporation and our by-laws also provide that, except as otherwise required by law, special meetings of our stockholders can only be called by the president or by the chairman of the board. These provisions could have the effect of delaying stockholder actions that are favored by the holders of a majority of our outstanding voting securities until the next annual meeting of stockholders.
Advanced Notice Procedures for Stockholder Proposals and Director Nominations
Our by-laws set forth advance notice provisions with respect to stockholders seeking to bring business before an annual meeting of stockholders, or to nominate candidates for election as directors at an annual meeting of stockholders or special meeting of stockholders called by our board of directors for that purpose. Our by-laws also specify various requirements as to the timing, form and content of a stockholder’s notice. 
Preferred Stock

As described above, our board of directors, without stockholder approval, may issue preferred stock with voting and conversion rights, which could adversely affect the voting power of the holders of our common stock. If we issue preferred stock, it may have the effect of delaying, deferring or preventing a change of control.
Anti-Takeover Effects of Delaware Law
We are subject to the provisions of Section 203 of the Delaware General Corporation Law, which, subject to certain exceptions, prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years following the time that such stockholder became an interested stockholder, unless:
(a) prior to such time, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;
(b) upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned:
•by persons who are directors and also officers; and
•by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
(c) at or subsequent to such time the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.
In general, Section 203 defines “business combination” to include:
(1)     any merger or consolidation involving (i) the corporation or a direct or indirect majority-owned subsidiary of the corporation and (ii) the interested stockholder or any other corporation, partnership or entity if the merger or consolidation is caused by the interested stockholder and as a result of such merger or consolidation any of (a), (b) or (c) above is not applicable to the surviving entity;
(2)     any sale, lease, exchange, mortgage, transfer, pledge or other disposition of 10% or more of the assets or outstanding stock of the corporation or any direct or indirect majority-owned subsidiary of the corporation to or with the interested stockholder;
(3)     subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation or any direct or indirect majority-owned subsidiary of the corporation of any stock of the corporation or such subsidiary to the interested stockholder;
(4)    any transaction involving the corporation or any direct or indirect majority-owned subsidiary of the corporation that has the effect of increasing the proportionate share of the stock of any class or series, or securities convertible into the stock of any class or series, of the corporation or any such subsidiary which is beneficially owned by the interested stockholder; or
(5)    the receipt by the interested stockholder of the benefit, directly or indirectly, of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation or any direct or indirect majority-owned subsidiary of the corporation.
In general, Section 203 defines an “interested stockholder” as any person who or which beneficially owns 15% or more of the outstanding voting stock of the corporation or any person affiliated or associated with or controlling or controlled by the corporation that was the owner of 15% or more of the outstanding voting stock of the corporation at any time within the three-year period immediately prior to the date of determination if such person is an interested stockholder, and the affiliates and associates of such person.

The existence of this provision would be expected to have an anti-takeover effect with respect to transactions not approved in advance by our board of directors, including discouraging takeover attempts that might result in a premium over the market price for the shares of common stock held by stockholders.Exhibit

Exhibit 10.22

IDEXX LABORATORIES, INC.
Executive Incentive Plan
Summary of Bonus Determination Process
As of Performance Year beginning 1/1/2020
Overview
Annual performance-based cash bonuses are paid to the individuals of the Executive Team, pursuant to our Executive Incentive Plan (the “Executive Incentive Plan”), which program is adopted by the Compensation Committee historically in February of each year for application to the bonus opportunities of that calendar year. The Executive Team for this purpose includes the Chief Executive Officer and certain other executive officers of the Company as designated by the Compensation Committee. Under the Executive Incentive Plan, the amount of each participating executive’s annual performance-based cash bonus is determined based on the overall performance factor, calculated in accordance with the description below.

Generally, in connection with the establishment of the performance goals under the Executive Incentive Plan relevant for that particular year, the Compensation Committee also determines, for each participant, the target annual performance-based cash bonus amount for that year, based on a percentage of the participant's annual base salary.  The Compensation Committee may also determine, for each participant who commences employment with the Company, or is promoted in any year, the target annual performance-based cash bonus amount for such participant for that year, which may be prorated in the discretion of the Compensation Committee. The Compensation Committee may also limit the maximum amount of the annual performance-based cash bonus payable to any participant to 200% of the participant’s target bonus amount, and historically has done so. 

The amount of the annual performance-based cash bonus payable to each participant under the Executive Incentive Plan is determined based upon that participant’s target bonus amount multiplied by an overall performance factor that is calculated using factors having the respective weights as determined by the Compensation Committee in its sole discretion at the time the factors are determined in February of each year, including:
		
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	A financial performance factor (determined by measuring Company performance against specific financial metrics selected by the Compensation Committee); and

		
	•
	A non-financial performance factor (determined by measuring the Company’s achievement of non-financial performance goals approved by the Compensation Committee that are focused on strengthening and positioning the Company for sustained future growth and profitability.

Financial Performance Factor
The financial metrics used to calculate the financial performance factor are established annually by the Compensation Committee. These factors may include any one or more of the following corporate-wide or subsidiary, division, operating unit or individual measures: earnings before interest, taxes, depreciation and amortization (EBITDA), net cash provided by operating activities, free cash flow, earnings per share, earnings per share from continuing operations, operating income, net income, revenues, organic revenues, gross profit, operating margins, gross margins, return on operating assets, return on equity, economic value added, stock price appreciation, total stockholder return, growth rates, cost control, strategic initiatives, market share, product development, before- or after-tax income, attainment by a share of the Company’s common stock of a specified fair market value for a specified period, price-to-earnings growth or return on invested capital of the Company or a subsidiary, affiliate or division of the Company for or within which the Participant is primarily employed, or any other objective measure as deemed appropriate by the Compensation Committee. Metrics may each be weighted in the determination of the Compensation Committee at the time the metrics are determined in February of each year. 

Each of the chosen metrics is subject to a rating calculated on a sliding scale, ranging from 50% to 180% (with no payout below threshold performance), using that year’s approved budget goal for the applicable metric as 100% of target payout. 

Non-Financial Performance Factor

The non-financial performance factor is determined by the Compensation Committee by measuring achievement of annual goals approved by the Compensation Committee and intended to strengthen the business to support long-term performance. Metrics utilized for this factor may include items such as implementation of certain operational initiatives, achievement in advancing functionality of business systems, execution of key management initiatives, goals focused on identified key business strategies, human capital management initiatives or other organizational support activities. 

Overall and Individual Performance Factors
In accordance with the weightings applied to the financial and non-financial performance factors, as determined for the applicable year, the incentive plan design results in an overall performance factor for the participants in the Executive Incentive Plan. The Compensation Committee may also consider the relative contributions made by each participant to the achievement of the Company’s financial and non-financial goals, as well as other factors such as the scope of and tenure in their roles at the Company, in determining the final amount of each award.

Adjustments
Financial measures may be adjusted in the discretion of the Compensation Committee to include or eliminate, as applicable, (i) the effects of differences between actual foreign currency exchange rates and currency exchange rates reflected in the budget of the Company approved by the Board in or around December of the year prior to the relevant performance year; and (ii) the effects of discrete items including, but not limited to, restructuring charges, debt financing costs, acquisition purchase accounting adjustments, acquisition-related transaction costs and integration expenses, adjustments to finalized pre-acquisition contingencies, litigation-related expenses and payments, gains and losses on the disposition of assets or discontinued operations, non-cash write downs, other unusual, non-recurring or extraordinary items, or otherwise in the discretion of the Compensation Committee. 

Similarly, the non-financial performance goals may be adjusted, in the discretion of the Compensation Committee, as the Compensation Committee considers to be necessary or appropriate in accordance with or related to any adjustments made to the financial goals, or as the facts and circumstances may warrant.

The above summary has been prepared for informational purposes only and shall not be deemed to be, and is not considered by the Company to be, a plan document. The process and mechanics of the bonus program described above are subject to change at any time in the discretion of the Compensation Committee and/or the Board, as applicable.

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