Document:

ex1018.htm

EXHIBIT 10.18

SUPPLEMENTAL BENEFIT AGREEMENT

This Supplemental Benefit Agreement (the “Agreement”) is dated and effective June 12, 2012 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 and restate a salary continuation agreement dated January 19, 1995, and previously amended on April 24, 2001, December 29, 2008 and August 3, 2011, to provide for certain additional supplemental benefits to Executive, as amended.  This amended and restated agreement shall be referred to as the Supplemental Benefit Agreement;

WHEREAS, Executive is an employee of the Corporation;

WHEREAS, Contemporaneous with the execution of this Agreement, Employee and Corporation have entered into an amended and restated employment agreement (“Amended Employment Agreement”);

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, certain benefits under the prior agreements, as amended, have vested and would be due Executive if his employment was currently terminated (“Previously Vested Benefits”);

WHEREAS, the Board of Directors believes that Executive's experience, knowledge of corporate affairs, reputation and industry contacts are of value and his continued services essential to Corporation's future growth and profits; 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 from service or alternatively, to his beneficiaries in the event of his death.

The recitals contained in the foregoing "Whereas" clauses are acknowledged by the parties to be true and accurate, and are incorporated herein, and made a part of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained and the provisions of the Executive’s Amended Employment Agreement, the Corporation and the Executive, agree as follows:

 

 

  

  

  

Supplemental Benefit Agreement

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ARTICLE I. – DEFINITIONS

	
  

	
A.

	
Capitalized Terms.  Capitalized terms used herein without specific definition or reference herein shall have the meanings respectively ascribed thereto in the Amended Employment Agreement.

	
  

	
B.

	
Non-Qualified Retirement from Service.  “Non-Qualified Retirement from Service” shall occur, if Executive voluntarily terminates his employment without a Good Reason.

	
  

	
C.

	
Qualified Retirement from Service.  “Qualified Retirement from Service” shall occur on the termination of Executive’s employment for reasons other than upon the occurrence of a Non-Qualified Retirement from Service.  A Qualified Retirement from Service shall include, but not be limited to:  (i) Executive’s termination of his employment for Good Reason, (ii) the Corporation’s termination of Executive’s employment without Cause,  (iii) termination of Executive’s employment for any reason (with or without Cause or Good Reason, whether such termination is voluntary or involuntary) within ninety (90) days prior to a Change of Control Event or any time within thirty-six (36) months following the date of the occurrence of a Change of Control Event, or (iv) termination of Executive’s employment any time after the date of September 30, 2014.

	
  

	
D.

	
Insurance Benefits.  “Insurance Benefits” shall mean (1) all premium payments in amounts sufficient to cover in full Executive’s health insurance supplement to Medicare coverage (or any successor program or supplemental program as may be legislated) at a level equivalent to the most comprehensive coverage available; and (2) all premium payments in amounts sufficient to provide for comprehensive long-term care insurance for Executive.

ARTICLE II. – SUPPLEMENTAL 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 neither affect nor limit the Executive's current or prospective salary increases, cash bonuses or profit-sharing distributions, credits or any other employee benefits offered by the Corporation. All benefits paid pursuant to the terms of this Agreement are subject to applicable federal, state and local withholding and income taxes.

	
  

	
A.

	
Benefits due Upon a Qualified Retirement from Service.  Upon a Qualified Retirement from Service, Executive shall be entitled to and Corporation shall provide and pay for the following supplemental benefits:

  

  

  

Supplemental Benefit Agreement

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The Executive shall receive $1,200,000 (“Total Amount”) from the Corporation payable in 120 monthly payments of $10,000 each (“Installment Amount”), beginning on the first day of the seventh month following the Executive’s Qualified Retirement from 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 the Qualified Retirement from Service, the payments shall continue for a period of 113 months.

 

In the event that the Executive should die subsequent to his Qualified Retirement from Service, but prior to his receipt of the Total Amount, the unpaid balance of such monthly payments shall be discounted at the Prime Rate as quoted in The Wall Street Journal (or any successor publication or similar financial publication, as agreed) and effective as of Executive’s Qualified Retirement from Service.  The discounted amount shall be 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 discounted amount shall be 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 Executive’s death, in accordance with the terms hereof.

The Corporation shall provide and pay for Insurance Benefits to or for the benefit of Executive for the remainder of his lifetime.

	
  

	
B.

	
Benefits Due Upon a Non-Qualified Retirement from Service.  Upon a Non-Qualified Retirement from Service, Executive shall be entitled to and Corporation shall provide and pay for the supplemental benefits set forth in Article II(A), including Insurance Benefits, provided, however, the Total Amount shall be reduced from $1,200,000 to $600,000 and the Installment Amount shall be reduced from $10,000 to $5,000, payable on the same terms as set forth above.  The benefits (other than the Insurance Benefits) set forth in this Article II(B) represent supplemental benefits which were fully vested as of the date of execution of this Agreement, subject only to the Executive’s separation from service.

	
  

	
C.

	
Termination of Service for Cause.  Should Executive be discharged for Cause subsequent to the date hereof, Executive shall be paid only the benefits payable for a Non-Qualified Retirement from Service, and Executive shall forfeit the additional payments that would be paid under a Qualified Retirement from Service.  Due to Executive’s agreement to continued services to Corporation under Executive’s Amended Employment Agreement, and in consideration of such continued services by Executive, Corporation re-affirms all payments due under a Non-Qualified Retirement from Service upon the execution of this Agreement, which payments would have been paid if Executive elected to retire at such time.

  

Supplemental Benefit Agreement

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ARTICLE III. - 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, in 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 the 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 the 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.

ARTICLE IV. – 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.

  

Supplemental Benefit Agreement

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B.   

	
Binding Obligation of Corporation and Any Successor in Interest.  This Agreement shall be binding upon the parties hereto, and their respective successors, assigns, 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.

	
  

	
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, 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.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Agreement and executed the original thereof as of the date first above written.

	
   /s/ Shirley Torrence                                                              

	
   /s/ John A. Kraeutler                                                

	
Witness

	
Executive

	  	  
	
   /s/ Shirley Torrence                                                               

	
   /s/ Melissa Lueke                                                    

	
Witness

	
Corporation

 

 

Supplemental Benefit Agreement

Page 5 of 5Exhibit 10.5

 

EMPLOYMENT AGREEMENT

 

	  	  	  
	  	
Party A (Employer)

	  
	  	  	  
	  	
Name: Sheng Yuan Nutritional Food Co., Ltd., Beijing R&D Center

	  
	  	  	  
	  	
Address: No. 106, Dongluyuan, Tongzhou District, Beijing

	  
	  	  	  
	  	
Party B (Employee):

	  
	  	  	  
	  	
Name: Xisen Mu                                  Sex: Male

	  
	  	  	  
	  	
ID Number: 230103195711154816

	  

	  	  	  
	  	
Party A

	  
	  	  	  
	  	
Name: Sheng Yuan Nutritional Food Co., Ltd., Beijing R&D Center

	  
	  	  	  
	  	
Legal person: Liang Zhang

	  
	  	  	  
	  	
Address: No. 106, Dongluyuan, Tongzhou District, Beijing

	  
	  	  	  
	  	
Party B:

	  
	  	  	  
	  	
Name: Xisen Mu            

	  
	  	  	  
	  	
Nationality: China

	  
	  	  	  
	  	
ID Number: 230103195711154816

	  
	  	  	  
	  	
Address: Dongluyuan, Tongzhaou, Beijing, China

	  
	  	  	  
	  	
Post code:

	  
	  	  	  
	  	
Address of Hu Kou: Nangang, Harbin, Heilongjiang

	  

  

  

  

 

 

Adhering to the principle of voluntariness and equality and in accordance with the Labor Law of the People’s Republic of China and related regulations currently in effect, Party A and Party B hereby enter into this Agreement for joint observance in good faith.

 

I. Term of Employment Agreement

 

Article 1

 

This Agreement shall be of the type described in clause (3) below, as agreed by the Parties.

 

	
(1)

	
Fixed-term contract: The term of this Agreement shall commence on September 1, 2011 and expire on August 31, 2014, among which, the probationary period shall commence on                      and expire on                        .

	
(2)

	
Contract that sets the completion of a specific task as the term to end the contract: The term of this Agreement shall commence on                      and expire upon completion of                     .

	
(3)

	
Contracts without a fixed term: The term of this Agreement shall commence on ____________, among which, the probationary period shall expire on                      .

 

II. Job Description and Place of Performance of Employment Agreement

 

Article 2

 

Party A employs Party B on Management position (type of work) as needed by its production.

 

Article 3

 

Party B shall accept Party A’s work arrangement and meet the requirement for quantity and quality set forth for his completion of the task on the position. The task and responsibility of the specific position (type of work) is as follows: As set out in Post Description and Performance Evaluation Form.

 

Article 4

 

If, as verified by Party A in its appraisal conducted pursuant to its criteria, Party B is incompetent for the position (type of work), Party A may change Party B’s position (type of work).

 

Article 5

 

Party A may change Party B’s position (type of work) upon mutual agreement of the Parties through consultation.

 

Article 6

 

The place of performance of this Agreement shall be Beijing    .

  

  

  

 

 

III. Remuneration

 

 

Article 7

 

Party A shall, on the principle of distribution according to work, pursuant to the requirements of the state, province and municipality in light of its actual condition, independently formulate its own post salary distribution system and determine the form and standard of salary payment to Party B.

 

Article 8

 

Party A shall pay Party B salary on a monthly basis. For the normal labor service provided by Party B to Party A within the statutory working hours, Party A shall, prior to the 10th day of each month, pay Party B salary of RMB 70,000 per month before Individual Income Tax.

 

Article 9

 

When using piecework wage system, the wage is determined by piece of work finished, on the premise that the minimum wage requirement of relevant regulations is met.

 

Article 10

 

During the performance of this Agreement, Party A may adjust Party B’s remuneration appropriately, depending on Party A’s operating condition and Party B’s performance.

 

IV. Insurance and Benefits

 

Article 11

 

Party A shall make contributions to social insurance pursuant to the regulations of the state, province and municipality and the social insurance contribution payable by Party B shall be withheld and paid by Party A on behalf of Party B.

 

Article 12

 

If Party B suffers from an illness or non-work-related injury, the matters relating to medical benefits and sick pay shall be handled in accordance with the regulations of the state, province, and municipality. Party A will make sick pay to Party B according to Attendance Rule.

 

Article 13

 

If Party B suffers from an occupational disease or work-related injury, the matters relating to medical benefits and sick pay shall be handled in accordance with the regulations of the state, province, and municipality.

 

Article 14

 

The benefits to which a female employee is entitled in her pregnancy, confinement, nursing or birth control surgery period shall be determined in accordance with the regulations of the state, province and municipality.

 

  

  

  

 

 

V. Amendment, Rescission, Termination and Renewal of the Employment Agreement

 

Article 15

 

Amendment, rescission, termination and renewal of the employment agreement should follow LAW OF THE PEOPLE'S REPUBLIC OF CHINA ON EMPLOYMENT CONTRACTS and other applicable laws and regulations.

 

Article 16

 

After termination of the employment agreement, Party A should help Party B to handle social security transferring and record transferring according to applicable laws and regulations.

 

Article 17

 

Party B should transfer his/her work to a person designated by Party A.

 

VI. Labor Protection, Working Conditions and Occupational Disease Protection

 

Article 18

 

Party A must provide Party B with labor safety and sanitary conditions consistent with the requirements of the state, province and municipality and necessary labor protection articles, establish and perfect labor safety and sanitation system and procedures for safe operation and production.

 

Article 19

 

Party A must set up safety production rules. Party B must strictly comply with the procedures for safe operation in the course of production (work).

 

Article 20

 

Party A shall set up anti-occupational diseases rules.

 

Article 21

 

Party A must take special labor protection measures for female employees and underage workers pursuant to the regulations of the state, province and municipality.

 

Article 22

 

The Parties shall strictly comply with the industrial accident and occupational disease reporting system adopted by the state, province and municipality.

 

VII. Working Hours, Break and Vacations

 

Article 23

 

Party A will arrange Party B to work under the flexible working hour system. If under standard working hour system, Party B will work a maximum of eight hours a day and on average a maximum of forty hours a week.

 

 Article 24

 

Party A may arrange Party B’s working hours and rest days according to the requirement of work.

 

  

  

  

 

 

Article 25

 

Party B should follow Party A’s overtime arrangement when the following conditions are met:

(1) Due to natural disaster, accident or other reasons, public safety and nation’s interest are endangered.

(2) Public transportation or public facilities is destroyed and public interest is suffered.

(3) Maintenance must be carried out at public holidays or weekends.

(4) The running of the machine can not stop during the holiday.

(5) Other circumstances required by laws and regulations.

 

Article 26

 

Party A shall ensure Party B’s right to rest pursuant to the regulations of the state, province and municipality and during the term of this Agreement, Party B shall be entitled to statutory holidays and matrimonial leave, maternity leave, vacation leave as set forth by the state, province and municipality.

 

VIII. Labor Discipline

 

Article 27

 

Party A shall, in accordance with the labor laws, regulations, rules and relevant policies of the state and in light of its actual condition, formulate and perfect rules, regulations and labor disciplines. Party B shall strictly comply with the rules and regulations and labor discipline of Party A, that are formulated in accordance with law, submit to the management of Party A and treat as confidential the trade secret of Party A.

 

Article 28

 

If Party B breaches any of the rules and regulations and labor discipline of Party A, Party A may, pursuant to its rules and regulations, render disciplinary punishment or, if necessary, rescind this Agreement.

 

IX. Liability for Breach of Contract

 

Article 29

 

If Party A pays for Party B’s training courses, both parties should sign a training agreement as the exhibit of this employment agreement, with specified term of training and liabilities for breach of contract. If Party B resigns before the end of the specified term, Party B should pay Party A for compensation.

 

Article 30

 

Both parties can sign separate agreement with regard to trade secret and intellectual property, as appendix to this agreement. Party B should pay Party A for damage in violation of the Confidentiality Agreement.

 

Article 31

 

If Party B rescinds this Agreement in violation of relevant provisions or the covenant in this Agreement, it shall pay Party A for compensation of the violation.

 

  

  

  

 

 

X. Labor Dispute Resolution

 

Article 32

 

If any dispute arises in connection with the performance of this Agreement, either Party may apply to Party A’s labor dispute mediation committee for mediation. If the dispute can not be resolved through mediation, the Parties shall apply for arbitration to the labor dispute arbitration committee where Party A is located.

 

XI. Other Matters

 

Article 33

 

Post Description, Employee Manual, Confidential Agreement, and commitment to Code of Conduct are appendixes to this agreement.

 

Article 34

 

This Agreement shall be filled out with fountain pen or writing brush. If altered unilaterally or signed by a person not duly authorized, this Agreement shall be void and null.

 

Article 35

 

This Agreement is executed in two counterparts which are of the same force and effect, with each Party holding one counterpart. This Agreement shall take effect on the date on which the Parties affix their signatures thereto.

 

XII. Other Matters to be Agreed Upon by the Parties

 

 

 

 

	
Party A (seal): Sheng Yuan Nutritional Food Co., Ltd., Beijing R&D Center

	
  

	
Party B (signature)

	  	  
	
Legal representative (signature)

	
  

	
/s/Xisen Mu

	  	  
	
(Authorized proxy)

	
  

	  
	  	  
	
Date: September 1, 2011

	
  

	
Date: September 1, 2011

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