Document:

Exhibit 10.16

Exhibit 10.16

SALARY CONTINUATION AGREEMENT

This Salary Continuation Agreement (the “Agreement”) is dated December 29, 2008
between Meridian Bioscience, Inc., an Ohio Corporation (the “Corporation”) and John A.
Kraeutler, Chief Executive Officer (“Executive”).

WITNESSETH:

WHEREAS, the Corporation and Executive wish to amend a salary continuation agreement
dated January 19, 1995, and previously amended on April 24, 2001, to be compliant
with Section 409A of the Internal Revenue Code, as amended;

WHEREAS, Executive is a Specified Employee as defined in Article I below;

WHEREAS, it is the consensus of the Board of Directors that Executive’s services have
been of exceptional merit, in excess of the compensation paid and an invaluable
contribution to the profits and position of the Corporation in its field of activity;

WHEREAS, the Board of Directors further believes that Executive’s experience, knowledge of
corporate affairs, reputation and industry contacts are of such value and his continued services
so essential to Corporation’s future growth and profits that it would suffer severe financial loss
should Executive terminate his services; and

WHEREAS, it is the desire of the Corporation and the Executive to enter into this
Agreement under which the Corporation will agree to make certain payments to Executive upon his
retirement or disability and, alternatively, to his beneficiaries in the event of his premature
death while employed by Corporation.

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

	I.	 	ARTICLE ONE — DEFINITIONS

	 	A.	 	Effective Date

	 
	 	 	 	The effective date of this Agreement shall be January 19, 1995.

	 
	 	B.	 	Normal Retirement Date

	 
	 	 	 	The Normal Retirement Date shall mean retirement from service with the
Corporation which
becomes effective on the first day of the calendar month following the
month in which the
Executive reaches his 62nd birthday.

	 
	 	C.	 	Early Retirement Date

	 
	 	 	 	Early Retirement Date shall mean a retirement from service which is
effective prior to the
Normal Retirement Date, stated above, provided the Executive has attained
age 60 and shall
have completed 15 years of service.

	 
	 	D.	 	Severance Benefits

	 
	 	 	 	Severance Benefits shall mean those benefits to which the Executive is entitled in
the event he is discharged by the Corporation without due cause. Any
dispute as to determination of “due cause” shall be subject to the terms of
Article VI.B., “Claims Procedure”.

 

 

 

	 	E.	 	Termination of Service

	 
	 	 	 	Termination of Service shall mean voluntary resignation of service by the Executive (exclusive
of early retirement or disability) or the Corporation’s discharge of the Executive for due cause.

	 
	 	F.	 	Specified Employee

	 
	 	 	 	Specified Employee shall have the meaning defined in IRC Section 409A, as amended.

	II.	 	ARTICLE TWO — EMPLOYMENT

	 	A.	 	Employment

	 
	 	 	 	Corporation agrees to employ Executive in such capacity as the Corporation may from time to
time determine with such duties, responsibilities and compensation as determined by the Board
of Directors.

	 
	 	 	 	Executive agrees to remain in the Corporation’s employment; to devote his full time and
attention exclusively to the business of the Corporation and to use his best efforts to provide
faithful and satisfactory service to Corporation.

	 
	 	 	 	Employment services shall include temporary disability not to exceed three months and
“leaves of absence” specifically granted Executive by the Board of Directors.

	 
	 	B.	 	No Employment Agreement Created

	 
	 	 	 	No provision of this Agreement shall be deemed to restrict or limit any existing employment
agreement by and between the Corporation and the Executive nor shall any conditions herein
create specific employment rights to the Executive nor limit the right of the Corporation to
discharge the Executive with or without cause. In a similar fashion, no provision shall limit the
Executive’s rights to voluntarily sever his employment at any time.

	III.	 	ARTICLE THREE — BENEFITS

	 
	 	 	The following benefits provided by the Corporation to the Executive are in the nature of a fringe benefit
and shall in no event be construed to effect nor limit the Executive’s current or prospective salary
increases, cash bonuses or profit-sharing distributions or credits. All benefits paid pursuant to the terms
of this Agreement are subject to applicable federal, state and local withholding and income taxes.

	 	A.	 	Retirement Benefits

	 
	 	 	 	If the Executive shall remain in the employment of the Corporation until the Normal
Retirement Date defined in Article One, then, in such event, he shall be entitled
to receive monthly from the Corporation an amount equal to the maximum value
supported by the key employee life insurance policy (Equitable Life policy #44 253
538) on the life of the Executive owned by the Corporation. However, in no event
shall the monthly payment to the Executive be less than $3,000. In the event
that the value of this life insurance policy is not sufficient to fund a monthly
payment of $3,000 for 120 months, the Corporation shall fund the shortfall. On the
first day of the seventh month following such “Normal Retirement Date.” The
Executive shall receive in a single sum the first seven months of such payments.
Thereafter, commencing on the first day of the eighth month following such Normal
Retirement Date, the payments shall continue for a period of 113 months.

	 
	 	 	 	The maximum value of this retirement benefit shall be calculated by a
representative of the life insurance company based on the policy account value at
“Normal Retirement Date.” An estimate of the level monthly payments to be
provided at retirement shall be calculated by said
representative and provided to the Corporation for communication to the Executive on
an annual basis.

 

 

 

	 	 	 	In the event that the Executive should die following Normal Retirement but before the
expiration of 120 months, the unpaid balance of such monthly payments shall be commuted at
8% and paid in a single sum to the beneficiary selected by the Executive in the
Beneficiary Designation Form provided by the Corporation. In the absence of or failure of
the Executive to designate a beneficiary, the unpaid balance of such monthly payments
shall be commuted at 8% and paid in a single sum to the Executive’s estate. For
purposes of this paragraph, the single sum amount shall be paid to the beneficiary
selected by the Executive, or paid to the Executive’s estate, as the case may be, on the
first day of the first month following the month of death.

	 
	 	B.	 	Early Retirement or Severance Benefit

	 
	 	 	 	Executive shall be entitled to receive Early Retirement or Severance Benefits,
as those terms are defined herein, provided he shall have attained the age of
60 and completed 15 years of service or, in the alternative, is discharged without
cause. Executive shall be entitled to receive monthly, for a continuous period of
120 months, level retirement benefits determined by multiplying the Normal
Retirement Benefit determined in Paragraph A of this Article by the following
fraction:

The numerator of which is the actual number of months the Executive
has been employed by the Corporation beginning January 19, 1995 until his early
retirement or the date of his discharge without cause, and;

The denominator of which is the total number of months the Executive
would have worked from January 19, 1995 until his Normal Retirement Date.

	 	 	 	Such level retirement benefits shall commence on the first day of the seventh month
following separation of service, whereby the Executive shall receive in a single
sum the first seven months of such payments. Thereafter, commencing on the
first day of the eighth month following separation of service, such level
retirement benefits shall continue for a period of 113 months.

	 
	 	 	 	In the event that the Executive should die following separation of service but
before the expiration of the 120 months, the unpaid balance of such
monthly payments shall be commuted at 8% and paid in a single sum to the
beneficiary selected by the Executive in the Beneficiary Designation Form
provided by the Corporation. In the absence or failure of the Executive to
designate a beneficiary, the unpaid balance of such monthly payments shall be
commuted at 8% and paid in a single sum to the Executive’s estate. For
purposes of this paragraph, the single sum amount will be paid to the beneficiary
selected by the Executive, or paid to the Executive’s estate, as the case may be, on the
first day of the first month following the month of death.

	 
	 	C.	 	Termination of Service or Voluntary Resignation

	 
	 	 	 	Should Executive voluntarily resign from his employment or should he be discharged for
cause (exclusive of Early Retirement), all Executive’s benefits under this
Agreement shall be forfeited and this Agreement shall become null and void. If a
dispute arises as to discharge “for cause”, such dispute shall be resolved as set forth in
Article VI. B.

 

 

 

	 	D.	 	Death Benefit Prior to Retirement

	 
	 	 	 	Should the Executive die before the Normal Retirement Date (exclusive of Early
Retirement or Severance), the Corporation agrees to pay to the Executive’s
designated beneficiary in the Beneficiary Designation Form, or in the
absence or failure of the Executive to designate a beneficiary, to the
Executive’s estate, a single sum of $350,000 on the first day of the
first month following the Executive’s death.

	 
	 	 	 	In the event the Executive’s death shall be the result of suicide within
a two-year period following the effective date of this Agreement, then
no death benefits shall be payable to the Executive or his designated
beneficiary.

	IV.	 	ARTICLE FOUR — RESTRICTIONS UPON FUNDING

	 
	 	 	Corporation shall have no obligation to set aside, earmark or entrust any fund
or money with which to pay its obligations under this Agreement. The Executive, his
beneficiaries or any successor in interest to him shall be and remain simply a
general creditor of the Corporation in the same manner as any other creditor
having a general claim for matured and unpaid compensation.

	 
	 	 	The Corporation reserves the absolute right at its sole discretion to
either fund the obligations undertaken by this Agreement or to refrain from
funding the same and to determine the extent nature, and method of such funding.

	 
	 	 	Should Corporation elect to fund this Agreement, in whole or in part, through
the purchase of life insurance, mutual funds, disability policies or annuities,
the Corporation reserves the absolute right, in its sole discretion, to terminate
such funding at any time, in whole or in part. At no time shall Executive be deemed to have
any lien nor right, title or interest in or to any specific funding investment or to any
assets of the Corporation.

	 
	 	 	If Corporation elects to invest in a life insurance, disability or annuity policy upon the
life of Executive, then Executive shall assist the Corporation by freely submitting to a
physical exam and supplying such additional information necessary to obtain such insurance
or annuities.

	 
	V.	 	ARTICLE FIVE — MISCELLANEOUS

	 	A.	 	Alienability and Assignment Prohibition

	 
	 	 	 	Except to the extent provided below, neither Executive, his widow nor any
other beneficiary under this Agreement shall have any power or right to
transfer, assign, anticipate, hypothecate, mortgage, commute, modify or
otherwise encumber in advance any of the benefits payable hereunder nor
shall any of said benefits be subject to seizure for the payment of any
debts, judgments, alimony or separate maintenance owed by the Executive or
his beneficiary, nor be transferable by operation of law in the event
of bankruptcy, insolvency or otherwise. In the event Executive or any
beneficiary attempts assignment, commutation, hypothecation, transfer or disposal
of the benefits hereunder, the Corporation’s liabilities shall forthwith
cease and terminate. Notwithstanding the preceding prohibition, in the
event Executive and his spouse divorce, the value of the benefits payable
hereunder may be subject to the division for the benefit of Executive’s
spouse pursuant to a divorce decree or other similar domestic relations
order.

	 
	 	B.	 	Binding Obligation of Corporation and Any Successor in Interest

	 
	 	 	 	This Agreement shall be binding upon the parties hereto, their successors,
beneficiaries, heirs and personal representatives.

 

 

 

	 	C.	 	Amendment and Revocation

	 
	 	 	 	It is agreed by and between the parties hereto that, during the lifetime
of the Executive, this Agreement may be amended or revoked at any time or
times, in whole or in part, by the mutual
written assent of the Executive and the Corporation. For any benefits not yet
accrued pursuant to Article III. B., the Corporation shall have the sole
discretion to amend or revoke this Agreement at any time or times, in
whole or in part, by a written amendment. For purposes hereof, benefits
shall be considered to have accrued only to the extent of the
Executive’s entitlement under Article III. B. determined as if the
Executive is discharged without cause as of the date of the amendment.

	 
	 	D.	 	Gender

	 
	 	 	 	Whenever in this Agreement words are used in the masculine or neuter
gender, they shall be read and construed as in the masculine, feminine
or neuter gender, whenever they should so apply.

	 
	 	E.	 	Effect on Other Corporation Benefit Plans

	 
	 	 	 	Nothing contained in this Agreement shall affect the right of the Executive to
participate in or be covered by any qualified or non-qualified pension,
profit sharing, group, bonus or other supplemental compensation or fringe
benefit plan constituting a part of Corporation’s existing or future
compensation structure.

	 
	 	F.	 	Non-compete Agreement

	 
	 	 	 	In the event the Executive violates any non-competition and confidentiality
agreement (or similar agreement) with the Corporation, determined in the
sole and absolute discretion of the Plan Administrator, no further
benefits shall be payable pursuant to this Agreement. This provision is
in addition to any remedies the Corporation might otherwise have for such
a violation and does not otherwise modify any such agreement.

	 
	 	G.	 	Headings

	 
	 	 	 	Headings and Subheadings in this Agreement are inserted for reference and
convenience only and shall not be deemed a part of this Agreement.

	 
	 	H.	 	Applicable Law

	 
	 	 	 	The validity and interpretation of this Agreement shall be governed by the
laws of the State of Ohio.

	VI.	 	ERISA PROVISIONS

	 	A.	 	Named Fiduciary and Plan Administrator

	 
	 	 	 	The “Named Fiduciary and Plan Administrator” of this plan shall
be the Compensation Committee of the Board of Directors of the
Corporation. The Named Fiduciary and Plan Administrator shall be
responsible for the management, control and administration of the Salary
Continuation Agreement as established herein. The Named Fiduciary
and Plan Administrator may delegate to others certain aspects of
the management and operation responsibilities of the plan including
the employment of advisors and the delegation of ministerial duties
to qualified individuals. The Named Fiduciary and Plan Administrator shall
have all powers necessary to discharge its duties under the Agreement,
including the sole and absolute authority to interpret and construe the
terms and provisions of this Agreement and to determine eligibility for
benefits hereunder.

 

 

 

	 	B.	 	Claims Procedure

	 
	 	 	 	In the event that benefits under this Agreement are not paid to the
Executive (or to his beneficiary in the case of the Executive’s death)
and such claimants feel they are entitled to
receive such benefits, then a written claim must be made to the Named
Fiduciary and Plan Administrator named above within 60 days from the date
payments are refused. The Named Fiduciary and Plan Administrator shall
review the written claim and if the claim is denied, in whole or in
part, shall provide in writing within 90 days of receipt of such claim,
the specific reasons for such denial, reference to the provisions of this
Agreement upon which the denial is based and any additional material or
information necessary to perfect the claim. Such written notice shall
further indicate the additional steps to be taken by claimants if a further review
of the claim denial is desired. A claim shall be deemed denied if the
Named Fiduciary and Plan Administrator fails to take any action within the
aforesaid 90-day period.

	 
	 	 	 	If claimants desire a second review, they shall notify the Named
Fiduciary and Plan Administrator in writing within 60 days of the
first claim denial. Claimants may review the Agreement or any documents
relating thereto and submit any written issues and comments they may feel
appropriate. In its sole discretion, the Named Fiduciary and Plan
Administrator shall then review the second claim and provide a written decision
within 60 days of receipt of such claim. This decision shall likewise state
the specific reasons for the decision and shall include reference to
specific provisions of the Agreement upon which the decision is based.
This decision of the Named Fiduciary and Plan Administrator shall be binding
and conclusive upon all parties; and may be overturned by a court of
competent jurisdiction only upon a finding that the decision was arbitrary and
capricious.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this
Agreement and executed the original thereof on the 29th day of December, 2008 and that, upon
execution, each has received a conforming copy.

	 	 	 
	 
	 	 
	 

	 	 
	WITNESS

	 	EXECUTIVE
	 
	 	 
	 
	 	 
	 

	 	 
	WITNESS

	 	CORPORATION

 

 

 

SALARY CONTINUTATION BENEFICIARY DESIGNATION

Executive, John A. Kraeutler, under the terms of a certain Salary Continuation
Agreement by and between the Executive and Meridian Bioscience, Inc., dated December 29, 2008,
hereby designates the following beneficiary to receive any guaranteed payments of death benefits
under such Agreement, followinghis death:

PRIMARY BENEFICIARY:

John A. Kraeutler Trust as Amended and Restated November 16, 2007

SECONDARY BENEFICIARY: none

This beneficiary designation hereby revokes any prior beneficiary designation, which may have been
in effect.

Such beneficiary designation is revocable at any time by the Executive.

Dated: 12/29/2008

	 	 	 
	 
	 	 
	 

	 	 
	WITNESS

	 	EXECUTIVE
	 
	 	 
	 
	 	 
	 	 	 
	WITNESSExhibit 10.23

Exhibit 10.23

EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”) is dated December 29, 2008 between
Meridian Bioscience, Inc., an Ohio corporation (the “Meridian”) and John A.
Kraeutler, Chief Executive Officer (“Kraeutler”).

W I T N E S S E T H :

WHEREAS, Meridian and Kraeutler desire to amend an employment agreement dated
February 15, 2001; and

WHEREAS, Meridian wishes to assure itself of the services of Kraeutler for the
period hereinafter provided, and Kraeutler is willing to be employed by Meridian for
such period, upon the terms and conditions provided in this Agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt of which is mutually
acknowledged, Meridian and Kraeutler agree as follows:

1. Employment. Meridian hereby employs Kraeutler, and Kraeutler shall serve
Meridian, on the terms and conditions set forth herein.

2. Term. Subject to the provisions for earlier termination as
hereinafter provided, Kraeutler shall be employed for thirty-six months commencing on the
date hereof (the “Initial Term”). The Agreement shall have a three year evergreen term.
Accordingly, the Agreement shall automatically be extended daily for an additional one day period
until a date thirty-six months after either party gives the other written notice of its intent to
stop the automatic daily extension. The Initial Term together with any extensions
shall hereinafter be referred to as the “Term.”

3. Position and Duties; Place of Performance.

3.1 Kraeutler shall serve as Chief Executive Officer of Meridian
and shall perform all duties customarily
attendant to that position and shall include those duties reasonably assigned to
Kraeutler from time-to-time by the Board of Directors of Meridian.

3.2 Kraeutler shall devote substantially all of his working time and effort to Meridian
and shall not, without Meridian’s prior written consent, furnish like or similar services to
anyone else or engage directly or indirectly in any activity adverse to Meridian’s interests.
Kraeutler will promote and develop business opportunities relating to Meridian’s current and
anticipated future business that come to his attention in a manner consistent with
Kraeutler’s duties and Meridian’s best interests.

3.3 In connection with Kraeutler’s employment by Meridian, Kraeutler will be
based at the principal place of business of Meridian in Cincinnati, Ohio.

4. Compensation.

4.1 Base Salary. During the Term of Kraeutler’s employment with
Meridian, as compensation for Kraeutler’s services under this Agreement, Meridian agrees to
pay to Kraeutler an annual base salary (the “Base Salary”) of Five Hundred Twenty-Five
Thousand Dollars ($525,000). Meridian’s Board of Directors shall in good faith review the
Base Salary annually, taking into account changes in Kraeutler’s responsibilities, increases in
the cost of living, performance of Kraeutler, increases in salaries to other executives
of Meridian and other pertinent factors, and may, in its reasonable discretion,
increase the Base Salary. Any increase in the Base Salary shall not serve to limit or
reduce any other obligation to Kraeutler under this Agreement. The Base Salary shall not be
reduced without the express written consent of Kraeutler. The term Base Salary as
used in this Agreement shall refer to the Base Salary as so increased.

 

 

 

4.2 Annual Bonus. Kraeutler shall be eligible to receive an annual bonus
as established by the Board of Directors in addition to Base Salary.

4.3 Other Compensation. In addition to compensation specified in this
Agreement, Kraeutler shall be eligible to receive stock options and other compensation under
Meridian’s compensation plans and arrangements available from time to time to Meridian’s
officers. Meridian stock options, restricted stock and other incentive compensation
subject to vesting (Award), granted to Kraeutler shall vest according to the agreement entered
into with Kraeutler at the time of the grant of such Award; provided, however, that
the Award shall fully vest upon the happening of any of the following events:
Change of Control Event (as defined in Section 8.7) or termination of
Kraeutler’s employment without Cause (as defined in Section 7.3), due to death or
Disability (as defined in Section 7.2) or Kraeutler’s termination of employment for Good
Reason (as defined in Section 7.4).

5. Expense Reimbursement. Kraeutler shall be entitled to prompt reimbursement
by Meridian for all reasonable out-of-pocket expenses incurred by him in
performing services under this Agreement, upon submission of such accounts and records
as may be required under Meridian policy.

6. Other Benefits.

6.1 Benefit Plans and Programs. Kraeutler shall be entitled, at Meridian’s expense, to such
medical, dental, hospitalization, life insurance, pension plan, profit-sharing, 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 Meridian.

6.2 Vacation. During the Term of Kraeutler’s employment with
Meridian, Kraeutler shall be entitled to paid vacation time in accordance with the
plans, practices, policies, and programs applicable to other senior officers of Meridian, but
in no event shall such vacation time be less than four weeks per year.

7. Termination of Employment. Notwithstanding the provisions of Section 2,
Kraeutler’s employment may be terminated under the following circumstances:

7.1 Death. Kraeutler’s employment is terminated upon his death.

7.2 Disability. Kraeutler’s employment may be terminated by Meridian due to illness or other physical or
mental disability of Kraeutler, resulting in his inability to perform substantially his
duties under this Agreement for a period of Ninety or more consecutive days or for
One Hundred Eighty days in the aggregate during any consecutive Twelve month period
(“Disability”).

7.3 Cause. Kraeutler’s employment may be terminated by Meridian
upon Notice of Termination to Kraeutler of action taken by the Board of
Directors of Meridian to discharge Kraeutler for Cause, which Notice of Termination
shall be delivered to Kraeutler within Ninety days after the Board of Directors has
both (x) knowledge of the conduct or event allegedly constituting Cause and (y)
reason to believe that such conduct or event constitutes grounds to terminate
Kraeutler for Cause. As used herein, “Notice of Termination” means a resolution duly
adopted by the affirmative vote of not less than a simple majority of the members of the Board of
Directors of Meridian, excluding Kraeutler, at a meeting called for the purpose of
determining that Kraeutler engaged in conduct that constitutes Cause (and at which
Kraeutler had a reasonable opportunity, together with his counsel, to be heard before
the Board of Directors prior to such vote). For purposes of this Agreement,
Meridian shall have “Cause” to terminate Kraeutler’s employment upon:

(i) an intentional act of fraud, embezzlement or theft in the course of
Kraeutler’s employment with Meridian resulting in material harm to Meridian; or

(ii) intentional wrongful damage to material assets of Meridian.

Any act or omission by Kraeutler shall be deemed “intentional” only if done, or omitted to be
done, by Kraeutler not in good faith and without the reasonable belief that his action or
omission was in or not opposed to the best interests of Meridian. Failure to meet
performance standards or objectives set by Meridian shall not constitute “Cause” for
purposes of this Agreement.

 

 

 

7.4 Good Reason. Kraeutler’s employment may be terminated by
Kraeutler for Good Reason. For purposes of this Agreement, “Good Reason” shall
mean (i) the assignment to Kraeutler of any duties materially inconsistent with
Kraeutler’s position (including, without limitation, status, offices, titles and
reporting requirements), authority, duties or responsibilities as contemplated by this
Agreement, or any other action by Meridian that results in a material diminution in such
position, authority, duties or responsibilities, excluding for this purpose an action not
taken in bad faith and that is remedied by Meridian within Ten days after receipt
of written notice thereof given by Kraeutler, provided that repeated instances of such action
shall constitute the bad faith of Meridian; (ii) a 5% or more reduction in Kraeutler’s Base
Salary or other benefits under this Agreement; (iii) the relocation of Meridian’s principal
offices to a location more than Fifty miles from the current location of such offices; (iv) any
material failure by Meridian to comply with any of the provisions of this Agreement, other than
a failure not occurring in bad faith and which is remedied by Meridian within Ten
days after receipt of written notice thereof given by Kraeutler, provided that
repeated failures shall constitute the bad faith of Meridian; or (v) removal of
Kraeutler as Chief Executive Officer, other than for Cause.

8. Compensation Upon Termination.

8.1 If Kraeutler’s employment is terminated voluntarily without Good Reason, terminated as a result of
Kraeutler’s death, or is terminated by Meridian for Cause, Kraeutler, or his estate, shall be
entitled to:

(i) any Base Salary earned but not yet paid;

(ii) any bonus awarded pursuant to Section 4.2 of this Agreement but not yet paid;

(iii) upon Kraeutler’s death, all or a portion of the Performance Bonus that he would have
received pursuant to Section 4.2 (assuming that Kraeutler and/or Meridian achieves the
goals necessary to receive any level of bonus potential for that year) for the year
in which the termination occurred (pro rata, according to the number of days Kraeutler
was employed by Meridian during such year) payable in a lump sum.

(iv) reimbursement in accordance with this Agreement of any reasonable business
expense incurred by Kraeutler but not yet paid; and

(v) other benefits accrued and earned by Kraeutler through the date of
his death or termination in accordance with applicable plans and programs of Meridian.

8.2 If Kraeutler’s employment is terminated as a result of Kraeutler’s Disability,
Kraeutler shall be entitled to receive on an annual basis until Kraeutler reaches age
sixty-five the full amount of Kraeutler’s Base Salary plus Performance Bonus and group
health and life insurance benefits until Kraeutler reaches age 65 at the same level that
Kraeutler was receiving such benefits at the date of termination. Compensation paid shall be
prorated during periods of less than one year. The amount of annual Base Salary
plus Performance Bonus shall be computed by averaging the Base Salary plus Performance Bonus
earned by Kraeutler during the preceding three fiscal years of Meridian.

8.3 If (a) Kraeutler’s employment is terminated by Meridian without Cause, (b)
Kraeutler terminates his employment with Meridian for Good Reason or (c) Kraeutler’s employment
is terminated for any reason (with or without Cause or voluntary or involuntary) upon or within
ninety days of a Change of Control Event (as defined below), Kraeutler shall be entitled to:

(i) (A) any Base Salary earned but not yet paid, plus (B) three times his Base
Salary (computed as the average annual Base Salary of Kraeutler for the preceding thirty-six
months).

(ii) any bonuses awarded pursuant to Section 4.2 of this Agreement but not yet
paid and three times the average annual Performance Bonus received by Kraeutler for the
preceding thirty-six months.

(iii) continued participation in all employee benefit plans and/or programs at
Meridian’s expense in which he was participating on the date of his termination of
employment for a period equal to the lesser of three years and the date that Kraeutler is
employed at another location.

 

 

 

(iv) reimbursement in accordance with this Agreement of any business expenses
incurred by Kraeutler but not yet paid to him on the date of his termination of employment.

(v) engagement, for a three month period, by Meridian on Kraeutler’s
behalf of a recognized job recruitment agency for the purpose of locating subsequent
employment for Kraeutler in a position of equal rank to Kraeutler’s position with Meridian.

(vi) full vesting in Kraeutler’s Supplemental Income Agreement as if Kraeutler had
reached age sixty-two and all premiums paid and full vesting in Kraeutler’s options to purchase
Meridian stock.

8.4 Unless otherwise indicated, any payments payable under this Section 8
shall be paid in a lump sum payment as soon as practical after Kraeutler’s
termination of employment but in any event no later than thirty days thereafter.

8.5 If, under the terms of any employee benefit plan referred to in subsection 8.3(iii)
above, Kraeutler may not continue his participation, he shall be provided with the
after-tax economic equivalent of the benefits provided under any plan in which he was
previously eligible to participate for the period specified in subsection 8.3(iii) above. The
economic equivalent of any benefit foregone shall be deemed to be the cost that would
be incurred by Kraeutler in obtaining such benefit.

8.6 Any amounts due under this Section 8 are in the nature of severance
payments or liquidated damages, or both, and shall fully compensate Kraeutler and his
dependents or beneficiaries, as the case may be, for any and all direct damages and
consequential damages that any of them may suffer as a result of termination of
Kraeutler’s employment in breach of this Agreement, and they are not in the nature of a penalty.

Upon termination of Kraeutler’s employment for any reason other than by Meridian for
Cause or by Kraeutler for Good Reason, Kraeutler and Meridian will, at the option of
Kraeutler, execute and deliver to each other a general release releasing the other and in
the case of Meridian its officers, directors, employees, agents, trustees, parents, subsidiaries,
predecessors, and affiliates (the “Releasees”) from all causes of action, claims, or demands that
either party may then have or have had against the Releasees based on any matter or thing,
including but not limited to Kraeutler’s employment with Meridian or the termination of
his employment (but not the obligations under this Agreement that continue after the date
on which Kraeutler’s employment terminates). The execution of this release shall be a
condition to the receipt by Kraeutler of the payments and benefits described in this
Section 8 except that the execution of this release shall not be a condition for the
receipt by Kraeutler of base salary earned but not yet paid, bonuses awarded
pursuant to Section 4.2 of this Agreement but not yet paid and reimbursement of any
business expenses incurred by Kraeutler but not yet paid.

8.7 As used herein, a “Change of Control Event” means (i) the sale of all, or
substantially all of the assets of Meridian; (ii) a merger, or recapitalization, or
similar transactions which results in the shareholders of Meridian immediately prior to
such event owning less than 60% of the fair market value or the voting power of the
surviving entity ; (iii) the date during any 12-month period that majority of
Meridian’s Board of Directors is replaced by directors whose appointment is not endorsed by a
majority of the members of Meridian’s Board of Directors before the date of appointment
or election; or (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 and the rules and regulations promulgated thereunder) of Fifty
Percent or more of the outstanding voting securities of Meridian by any person, entity
or group; provided, however, that a Change in Control of Meridian shall not include the
purchase of additional securities of Meridian by any person in Control of Meridian as of
December 31, 2000. This definition shall not apply to the purchase of Shares by
underwriters in connection with a public offering of securities of Meridian, or the
purchase of shares of up to Twenty-Five Percent of any class of securities of Meridian by
a tax-qualified employee stock benefit plan. The term “Control” means (i) ownership or control
of more than 50% of the fair market value or voting power of the outstanding shares of any
class of voting securities of Meridian, directly or indirectly, or (ii) the ability,
in any manner, to elect a majority of the directors of Meridian. The term
“person” refers to an individual or a corporation, partnership, trust, association,
joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any
other form of entity not listed.

 

 

 

9. Covenants and Confidential Information. Kraeutler and Meridian hereby
reaffirm the terms of that certain Non-Competition and Confidentiality Agreement by and
among Meridian and its affiliated companies and its subsidiaries and Kraeutler dated
October 8, 1992. Such agreement is hereby incorporated herein by reference.

10. Parachute Payment. If Kraeutler is liable for the payment of any excise
tax (the “Basic Excise Tax”) because of Section 4999 of the Internal Revenue Code of
1986, as amended (the “Code”), or any successor or similar provision, with respect to
any payments or benefits received or to be received from Meridian or any successor to
Meridian, whether provided under this Agreement or otherwise, Meridian shall pay
Kraeutler an amount (the “Special Reimbursement”) which, after payment by Kraeutler (or
on Kraeutler’s behalf) of any federal, state and local taxes applicable to the
payment, including, without limitation, any further excise tax under such Section 4999
of the Code, on, with respect to or resulting from the Special Reimbursement, equals
the net amounts of the Basic Excise Tax.

11. Assignability; Binding Nature. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors, heirs (in the case of
Kraeutler) and assigns.

12. Entire Agreement. Except to the extent otherwise provided herein, this
Agreement contains the entire understanding and agreement between the Parties concerning the
subject matter hereof and supersedes any prior agreements, whether written or oral, between the
Parties concerning the subject matter hereof.

13. Amendment or Waiver. No provision in this Agreement may be amended
unless such amendment is agreed to in writing and signed by both Kraeutler and an
authorized officer of Meridian. No waiver by either Party of any breach by the other Party
of any condition or provision contained in this Agreement to be performed by such other Party
shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any
prior or subsequent time. Any waiver must be in writing and signed by Kraeutler or
an authorized officer of Meridian, as the case may be.

14. Severability. If any provision or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, in whole or in part, the
remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force
and effect to the fullest extent permitted by law.

15. Survivorship. The respective rights and obligations of the
Parties hereunder shall survive any termination of Kraeutler’s employment with
Meridian to the extent necessary to the intended preservation of such rights and
obligations as described in this Agreement.

16. Governing Law. This Agreement shall be governed by and construed and
interpreted in accordance with the internal substantive laws of Ohio, without reference to
principles of conflict of laws.

17. Notices. Any notice given to either Party shall be in writing
and shall be deemed to have been given when delivered personally or One day after
having been sent by overnight courier service or Three days after having been sent by
certified or registered mail, postage prepaid, return receipt requested, duly addressed
to the Party concerned at the address indicated below or to such changed address as such Party
may subsequently give such notice of:

	 	 	 
	If to Meridian or the Board:

	 	Meridian Bioscience, Inc.
	 

	 	3471 River Hills Drive
	 

	 	Cincinnati, Ohio 45244
	 
	 	 
	If to Kraeutler:

	 	John A. Kraeutler
	 

	 	Cincinnati, Ohio

18. Headings. The headings of the sections contained in this Agreement are for convenience only and shall
not be deemed to control or affect the meaning or construction of any provision of this Agreement.

 

 

 

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

IN WITNESS WHEREOF, Kraeutler and Meridian have executed this Agreement as of the
date and year first above written.

	 	 	 	 	 
	 	MERIDIAN BIOSCIENCE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	
 	 
	 	JOHN A. KRAEUTLER

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