Document:

Exhibit

    
Execution Version

3D SYSTEMS CORPORATION
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made on this 24th day of August to become effective and commence upon September 1, 2016 (the “Effective Date”), by and between 3D Systems Corporation, a corporation organized and existing under the laws of the State of Delaware (“Company”), and Philip Schultz (“Executive”).
RECITALS
WHEREAS, commencing on the Effective Date, Company desires to employ Executive as Senior Vice President & General Manager - On Demand Solutions, subject to the terms and conditions of this Agreement; and 
WHEREAS, Executive desires to be employed by Company in the aforesaid capacity subject to the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of the foregoing premises, of the mutual agreements and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows, effective as of the Effective Date:
AGREEMENT
		
	1.
	Employment.

Company hereby agrees to employ Executive, and Executive hereby accepts employment, as Senior Vice President & General Manager - On Demand Solutions, or such other position as mutually agreed to between Executive and the Company pursuant to the terms of this Agreement, with such employment to commence as of the Effective Date.  Executive shall have the duties and responsibilities and perform such administrative and managerial services of that position as are set forth by the Chief Executive Officer from time to time.  Executive shall carry out Executive’s responsibilities hereunder on a full-time basis for and on behalf of Company; provided that Executive shall be entitled to devote time to outside boards of directors, personal investments, civic and charitable activities, and personal education and development, so long as such activities do not interfere with or conflict with Executive’s duties hereunder in any material respect, and provided that Executive notifies the Corporate Governance and Nominating Committee (the “Governance Committee”) of the Board of Directors of the Company (the “Board”) of any outside boards of directors on which Executive intends to serve, and the Governance Committee consents to such service, which consent may be granted or withheld in the sole discretion of the Governance Committee.  Notwithstanding the foregoing, Executive agrees that, during the term of this Agreement, Executive shall not act as an officer or employee of any for profit business other than Company without the prior written consent of Company.

		
	2.
	Term.

The term of Executive’s employment by Company under this Agreement (the “Employment Period”) shall commence on the Effective Date and shall continue in effect through the second (2nd) anniversary of the Effective Date, unless earlier terminated as provided herein.  Thereafter, unless Company or Executive shall elect not to renew the Employment Period upon the expiration of the initial term or any renewal term, which election shall be made by providing written notice of nonrenewal to the other party at least thirty (30) days prior to the expiration of the then current term, the Employment Period shall be extended for an additional twelve (12) months.  If Company elects not to renew the Employment Period at the end of the initial term or any renewal term, such nonrenewal shall be treated as a termination of the Employment Period and Executive’s employment without Cause by Company for the limited purpose of determining the payments and benefits available to Executive under this Agreement (e.g., Executive shall be entitled to the severance benefits set forth in Section 4.5.1).  If Executive elects not to renew the Employment Period, such nonrenewal shall constitute a termination of Executive’s employment and the Employment Period by Executive without Constructive Discharge, and Executive shall only be entitled to the payments and benefits set forth in Section 4.5.2.
		
	3.
	Compensation and Benefits.

In consideration for the services Executive shall render under this Agreement, commencing upon the Effective Date, Company shall provide or cause to be provided to Executive the following compensation and benefits:
3.1     Base Salary.  During the Employment Period Company shall pay to Executive an annual base salary of $330,000 per annum, subject to all appropriate federal and state withholding taxes and which shall be payable in accordance with Company’s normal payroll practices and procedures.  Executive’s base salary shall be reviewed annually, and may be increased in the sole discretion of the Company, based on Executive’s performance during the preceding calendar year.  Executive’s base salary, as such base salary may be increased hereunder, is hereinafter referred to as the “Base Salary.”
3.2    Performance Bonuses.  Executive shall be eligible to receive cash bonuses in accordance with this Section 3.2 (each a “Performance Bonus”).  Payment of any Performance Bonus will be subject to the sole discretion of the Company, and such Performance Bonus shall be determined in the sole discretion of the Company. Subject to the foregoing exercise of discretion, Executive’s annual target Performance Bonus shall be not less than 50% of Executive’s Base Salary (the “Target Performance Bonus”), provided that the actual Performance Bonus shall be based on performance, which may be less than or exceed the Target Performance Bonus Performance Bonuses, if any, shall be paid according to the terms of the bonus plan or program in which Executive participates from time to time.  Subject to Section 4.5.1 and Section 4.5.3 below, Executive must be employed to be entitled to any portion of any Performance Bonus, and the Performance Bonus shall not be considered earned under this Agreement until such Bonus is paid.
3.3    Benefits.  During the Employment Period and as otherwise provided hereunder, Executive shall be entitled to the following:
3.3.1    Vacation.  Executive shall be entitled to participate in the Company’s vacation policy for similarly-situated executives of the Company.
3.3.2    Participation in Benefit Plans.  Executive shall be entitled to health and/or dental benefits, including immediate coverage for Executive and Executive’s eligible dependents, which are generally available to Company’s executive employees and as provided by Company, subject to the terms of its group health insurance plan.  In addition, Executive shall be entitled to participate in any profit sharing plan, retirement plan, group life insurance plan or other insurance plan or medical expense plan maintained by Company for its executives generally, in accordance with the general 

eligibility criteria therein and subject to the terms of any applicable plan.  Nothing in this Agreement shall be construed as a promise to provide any particular benefit, should the Company decide to discontinue or amend any particular benefit plan for other executives.
3.3.3    Perquisites. Executive shall be entitled to such other benefits and perquisites that are generally available to Company’s executive employees and as provided in accordance with Company’s plans, practices, policies and programs for executive employees of Company.
3.4    Expenses.  Company shall reimburse Executive for proper and necessary expenses incurred by Executive in the performance of Executive’s duties under this Agreement from time to time upon Executive’s submission to Company of invoices of such expenses in reasonable detail and subject to all standard policies and procedures of Company with respect to such expenses.
3.5    Stock Awards.  Executive shall be eligible to participate in any applicable stock bonus, restricted stock award, restricted stock unit, stock option, or similar plan, if any, implemented by Company and generally available to its executive employees.  The amount of the awards, if any, made thereunder shall be in the sole discretion of the Board or Compensation Committee of the Board.  Any such award that may be granted shall be subject to the terms of any applicable plan or agreement, and Executive shall not be entitled to any award if Executive does not sign, or comply with, the terms of any plan or agreement required for the award.
3.6    New Hire Grant.  Executive shall receive the following equity grants under the terms of the 2015 Incentive Plan of 3D Systems Corporation, the terms of which shall be reflected in one or more award agreements to be issued contemporaneously with the commencement of Executive’s employment hereunder:
3.6.1    Restricted Stock Award with respect to 35,000 shares of the common stock, $0.001 par value per share, of the Company (“Common Stock”), which shall vest and become exercisable in three equal annual installments during the continuation of Executive’s employment hereunder;
3.6.2    Stock Option Grant with respect to 50,000 shares of Common Stock that vest and become exercisable when the closing price of the Common Stock on the principal stock exchange on which the Company’s shares are listed is $30 per share or greater for each trading day in any 90 calendar day period during the continuation of Executive’s employment hereunder;
3.6.3    Restricted Stock Award with respect to 10,000 shares of Common Stock, which shall vest and become exercisable when the closing price of the Common Stock on the principal stock exchange on which the Company’s shares are listed is $30 per share or greater for each trading day in any 90 calendar day period during the continuation of Executive’s employment hereunder;
3.6.4    Stock Option Grant with respect to 50,000 shares of Common Stock that vest and become exercisable when the closing price of the Common Stock on the principal stock exchange on which the Company’s shares are listed is $40 per share or greater for each trading day in any 90 calendar day period during the continuation of Executive’s employment hereunder; and
3.6.5    Restricted Stock Award with respect to 10,000 shares of Common Stock, which shall vest and become exercisable when the closing price of the Common Stock on the principal stock exchange on which the Company’s shares are listed is $40 per share or greater for each trading day in any 90 calendar day period during the continuation of Executive’s employment hereunder.
provided, however, that notwithstanding any provision of the foregoing to the contrary, none of the awards listed above in this section shall become vested and exercisable prior to the expiration of six (6) months after the Effective Date and only if Executive’s employment hereunder is continuing at that time. The awards described above shall be subject to such additional terms and conditions and documentation as may be determined by the Board or the Compensation Committee in its sole discretion.
		
	4.
	Termination of Services Prior To Expiration of Agreement.

Executive’s employment and the Employment Period may be terminated at any time as follows (the effective date of such termination hereinafter referred to as the “Termination Date”):

4.1    Termination upon Death or Disability of Executive.
4.1.1    Executive’s employment and the Employment Period shall terminate immediately upon the death of Executive.  In such event, all rights of Executive and/or Executive’s estate (or named beneficiary) shall cease except for the right to receive payment of the amounts set forth in Section 4.5.3 of the Agreement. 
4.1.2    Company may terminate Executive’s employment and the Employment Period upon the disability of Executive.  For purposes of this Agreement, Executive shall be deemed to be “disabled” if Executive, as a result of illness or incapacity, shall be unable to perform substantially Executive’s required duties for a period of three (3) consecutive months or for any aggregate period of three (3) months in any six (6) month period.  In the event of a dispute as to whether Executive is disabled, Company may refer Executive to a licensed practicing physician who is mutually acceptable to Executive and Company, and Executive agrees to submit to such tests and examination as such physician shall deem appropriate to determine Executive’s capacity to perform the services required to be performed by Executive hereunder.  In such event, the parties hereby agree that the decision of such physician as to the disability of Executive shall be final and binding on the parties.  Any termination of the Employment Period under this Section 4.1.2 shall be effected without any adverse effect on Executive’s rights to receive benefits under any disability policy of Company, but shall not be treated as a termination without Cause and Executive shall be entitled to no further benefits or compensation under this Agreement.
4.2    Termination by Company for Cause.  Company may terminate Executive’s employment and the Employment Period for Cause (as defined herein) upon written notice to Executive, which termination shall be effective on the date specified by Company in such notice; provided, however, that in respect of Sections 4.2.1 and 4.2.4 only, Executive shall have a period of ten (10) days after the receipt of the written notice from Company to cure the particular action or inaction, to the extent a cure is possible.  For purposes of this Agreement, the term “Cause” shall mean: 
4.2.1    The willful failure by Executive to perform Executive’s duties and obligations hereunder in any material respect, as determined by the Chief Executive Officer of the Company in his reasonable judgment, other than any such failure resulting from the disability of Executive;
4.2.2    Executive’s commission of a crime or offense involving the property of Company, or any crime or offense constituting a felony or involving fraud or moral turpitude;
4.2.3    Executive’s violation of any law, which violation is materially injurious or could reasonably be expected to be materially injurious to the operations, prospects or reputation of Company; 
4.2.4    Executive’s material violation of this Agreement or any generally recognized policy of Company or Executive’s refusal to follow Company’s reasonable and lawful instructions;
4.2.5    Executive’s commission, by act or omission, of any material act of dishonesty in performing employment duties; or
4.2.6    Executive’s use of alcohol or illegal drugs that interferes with performing employment duties, as determined by the Company.
Any notice of termination for Cause provided to Executive pursuant to Sections 4.2.1, 4.2.4 or 4.2.5 shall specify in reasonable detail specific facts regarding any such assertion.  
4.3    Termination by Company without Cause; Termination by Executive without Constructive Discharge.  Executive may terminate Executive’s employment and the Employment Period at any time for any reason upon thirty (30) days’ prior written notice to Company.  Company may terminate Executive’s employment and the Employment Period without Cause effective immediately upon written notice to Executive.  Upon termination of Executive’s employment with Company for any reason, Executive shall be deemed to have resigned from all positions with the Company and each of its subsidiaries and shall take all appropriate steps and cooperate with Company to effect such terminations (provided, that any such deemed resignations shall not affect Executive’s entitlement (if any) to severance pay and benefits hereunder).
4.4    Termination by Executive for Constructive Discharge.

4.4.1    Executive may terminate Executive’s employment and the Employment Period, in accordance with the process set forth below, as a result of a Constructive Discharge.  For purposes of this Agreement “Constructive Discharge” shall mean the occurrence of any of the following:
(i)a failure of Company to meet its obligations in any material respect under this Agreement, including, without limitation, (x) a greater than 10% reduction in Base Salary or (y) any failure to pay the Base Salary (other than, in the case of clause (y), the inadvertent failure to pay a de minimis amount of the Base Salary, which payment is immediately made by Company upon notice from Executive); 
(ii)     a material diminution in or other substantial adverse alteration in the nature or scope of Executive’s responsibilities, authority, or duties with Company from those in effect on the Effective Date; or
(iii)    without Executive’s prior written agreement, Executive’s principal place of business is moved to a location that is more than seventy-five (75) miles from the Company’s offices located in San Diego, California.
In the event of the occurrence of a Constructive Discharge, Executive shall have the right to terminate Executive’s employment hereunder and receive the benefits set forth in Section 4.5.1 below, upon delivery of written notice to Company no later than the close of business on the sixtieth (60th) day following the effective date of the Constructive Discharge; provided, however, that such termination shall not be effective until the expiration of thirty (30) days after receipt by Company of such written notice if Company has not cured such Constructive Discharge within the 30-day period.  If Company so effects a cure, the Constructive Discharge notice shall be deemed rescinded and of no force or effect.  Notwithstanding the foregoing, such notice and lapse of time shall not be required with respect to any event or circumstance which is the same or substantially the same as an event or circumstance with respect to which notice and an opportunity to cure has been given within the previous six (6) months.  The Termination Date due to Constructive Discharge shall be the date of Executive’s “separation from service” (within the meaning of Treas. Reg. Section 1.409A‐1(h)).
4.5    Rights upon Termination.  Upon termination of Executive’s employment and the Employment Period, the following shall apply:
4.5.1    Termination by Company Without Cause or for Constructive Discharge.  If Company terminates Executive’s employment and the Employment Period without Cause, or if Executive terminates Executive’s employment and the Employment Period as a result of a Constructive Discharge, Executive shall be entitled to receive payment of any Base Salary amounts that have accrued but have not been paid as of the Termination Date, and the unpaid Performance Bonus, if any, with respect to the calendar year preceding the calendar year in which the Termination Date occurs (such Performance Bonus, if any, to be determined in the manner that it would have been determined, and payable at the time it would have been payable, under Section 3.2 had there been no termination of the Employment Period).  In addition, subject to Sections 4.5.2 and 4.7, below, Company shall, subject to Sections 8.13, 8.14 and 8.15, be obligated to pay Executive (or provide Executive with) the following benefits as severance:
(i) an amount equal to Executive’s Base Salary, payable in twelve (12) equal monthly installments commencing on the Termination Date, such amount to be payable regardless of whether Executive obtains other employment and is compensated therefor (but only so long as Executive is not in violation of any provision of Section 5) (with the first two (2) installments to be paid on the sixtieth (60th) day following the Termination Date and the remaining ten (10) installments being paid on the ten (10) following monthly anniversaries of such date); 
(ii)any unused vacation time accrued in the calendar year in which the Termination Date occurs;

(iii)if Executive elects to continue Executive’s then current enrollment (including family enrollment, if applicable) in the health and/or dental insurance benefits set forth in Section 3.3.2 in accordance with COBRA, then for a period of up to twelve (12) months following the Termination Date, the Company will continue to pay a portion of the premiums such that Executive’s contribution to such plans will remain the same as if Executive were employed by Company, such contributions to be paid by Executive in the same period (e.g., monthly, bi-weekly, etc.) as all other employees of Company (but deductions from Executive’s monthly severance payments may be deemed acceptable for this purpose in the discretion of Company); provided, however that Company may terminate such coverage if payment from Executive is not made within ten (10) days of the date on which Executive receives written notice from Company that such payment is due; and provided, further, that such benefits shall be discontinued earlier to the extent that Executive is no longer eligible for COBRA continuation coverage.  In addition, this benefit is contingent upon timely election of COBRA continuation coverage and will run concurrent with the COBRA period. Executive acknowledges and agrees that the amount of any such premiums paid by the Company will constitute taxable wages for income and employment tax purposes; and 
(iv)in the event, and only in the event, that such Termination Date occurs on or prior to December 31, 2017, a pro-rata portion of the Performance Bonus, if any, with respect to the calendar year in which the Termination Date occurs (such Performance Bonus, if any, to be determined in the manner that it would have been determined, and payable at the time it would have been payable, under Section 3.2 had there been no termination of the Employment Period).
For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right to receive the foregoing payments shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment.
4.5.2    Termination With Cause by Company or Without Constructive Discharge by Executive.  If Company terminates Executive’s employment and the Employment Period with Cause, or if Executive terminates Executive’s employment and the Employment Period other than as a result of a Constructive Discharge, (i) Company shall be obligated to pay Executive any Base Salary amounts that have accrued but have not been paid as of the Termination Date, (ii) any unpaid Performance Bonus to which Executive otherwise would be entitled shall be forfeited; and (iii) any unused vacation time accrued in the calendar year in which the Termination Date occurs.
4.5.3    Termination Upon Death or Disability.  If Executive’s employment and the Employment Period are terminated because of the death of Executive or because Executive is disabled, Company shall, subject to Sections 8.13 and 8.14, be obligated to pay Executive or, if applicable, Executive’s estate, the following amounts:  (i) earned but unpaid Base Salary; (ii) the unpaid Performance Bonus, if any, with respect to the calendar year preceding the calendar year in which the Termination Date occurs (such Performance Bonus, if any, to be determined in the manner it would have been determined, and payable at the time it would have been payable, under Section 3.2 had there been no termination of the Employment Period); and (iii) any unused vacation time accrued in the calendar year in which the Termination Date occurs.
4.6    Effect of Notice of Termination.  Any notice of termination by Company, in the discretion of the Company, whether for Cause or without Cause, may specify that, during the notice period, Executive need not attend to any business on behalf of Company.
4.7    Requirement of a Release; Exclusivity of Severance Payments under this Agreement.  As a condition to the receipt of the severance payments and termination benefits to be provided to Executive pursuant to this Section 4 upon termination of Executive’s employment without Cause or with Constructive Discharge, Executive shall execute and deliver to Company (without revoking during any applicable revocation period specified in the release) a general release of claims against Company and its affiliates in a customary form reasonably satisfactory to Company within forty-five (45) days following the Termination Date, which shall be in form and substance satisfactory to the Company (provided, that Executive shall not 

be required to release any rights under this Agreement or any other agreement with the Company or any of its affiliates with respect to any payments or obligations of the Company or such affiliates that under the terms of the applicable agreement are to be made or satisfied after the Termination Date, any rights to insurance coverage or any rights under benefit plans that by their terms survive the termination of Executive’s employment, or any indemnification or related rights under Company’s certificate of incorporation or Bylaws or under any indemnification agreement between Company and Executive or any rights under any director and officer liability insurance policy maintained by Company for the benefit of Executive).  In addition, the severance payments and termination benefits to be provided to Executive pursuant to this Section 4 upon termination of Executive’s employment shall constitute the exclusive payments in the nature of severance or termination pay or salary continuation which shall be due to Executive upon a termination of employment and shall be in lieu of any other such payments under any severance plan, program, policy or other arrangement which has heretofore been or shall hereafter be established by Company or any of its affiliates, other than payments to Executive under any indemnification or related rights under Company’s certificate of incorporation or Bylaws or under any indemnification agreement between Company and Executive or under any director and officer liability insurance policy maintained by Company for the benefit of Executive.  Without limiting Executive’s obligations under Section 5.10, Executive shall furthermore agree, as a condition to Company’s obligation to pay severance payments and termination benefits, to return any and all Company property and to abide by any existing restrictive covenant obligations set forth in this Agreement that survive the termination of this Agreement.
		
	5.
	Restrictive Covenants. 

The growth and development of Company and its affiliates and subsidiaries (collectively, “3D Systems”) depends to a significant degree on the possession and protection of its customer list, customer information and other confidential and proprietary information relating to 3D Systems’ products, services, methods, pricing, costs, research and development and marketing.  All 3D Systems employees and others engaged to perform services for 3D Systems have a common interest and responsibility in seeing that such customer information and other Confidential Information, as that term is defined in Section 5.6 below, is not disclosed to any unauthorized persons or used other than for 3D Systems’ benefit.  This Section 5 expresses a common understanding concerning Company’s and Executive’s mutual responsibilities.  Therefore, in consideration for Company’s agreement to employ or continue to employ Executive and grant Executive access to its Confidential Information, trade secrets, customer relationships and business goodwill, and for other good and valuable consideration from Company, including, without limitation, compensation, benefits, raises, bonus payments or promotions, the receipt and sufficiency of which are hereby acknowledged, and the severance benefits payable pursuant to Section 4.5, Executive covenants and agrees as follows, which covenant and agreement is essential to this Agreement and Executive’s employment with Company: 
5.1    Solicitation.  Executive acknowledges that the identity and particular needs of 3D Systems’ customers are not generally known and were not known to Executive prior to Executive’s employment with 3D Systems; that 3D Systems has relationships with, and a proprietary interest in the identity of, its customers and their particular needs and requirements; and that documents and information regarding 3D Systems’ pricing, sales, costs and specialized requirements of 3D Systems’ customers are highly confidential and constitute trade secrets.  Accordingly, Executive covenants and agrees that during the Employment Period and for a period of twelve (12) months after the Termination Date, regardless of the reason for such termination, Executive will not, except on behalf of 3D Systems during and within the authorized scope of Executive’s employment with 3D Systems, directly or indirectly, use any Confidential Information to:  (i) call on, sell to, solicit or otherwise deal with any accounts, or customers of 3D Systems which Executive called upon, contacted, solicited, sold to, or about which Executive learned Confidential Information while employed by 3D Systems, for the purpose of soliciting, selling and/or providing, to any such account or customer, any products or services similar to or in competition with any products or services then being sold by 3D Systems; or (ii) solicit the services of any person who is an employee of 3D Systems; or (iii) solicit, induce or entice 

any employee of 3D Systems to terminate employment with 3D Systems or to work for anyone in competition with 3D Systems or its subsidiaries.  
5.2    Non-Interference with Business Relationships.  Executive covenants and agrees that during the Employment Period, Executive will not interfere with the relationship or prospective relationship between 3D Systems and any person or entity with which 3D Systems has a business relationship, or with which 3D Systems is preparing to have a business relationship.
5.3     Non-Competition.  Executive agrees that during the Employment Period, Executive shall not, directly or indirectly, for Executive’s own benefit or for the benefit of others, own any interest in, develop, manage, control, participate in, consult, render services, organize, or in any manner engage (whether as an officer, director, employee, independent contractor, partner, member, joint venturer, agent, representative, or otherwise, but in each instance, in a role similar to or the same as, or with any of the same or similar duties and responsibilities as, any position or services held or rendered by Employee on behalf of 3D Systems during Employee’s employment with 3D Systems) in any activity or enterprise providing 3D or additive manufacturing content-to-print solutions, including 3D printers, print materials, on-demand custom parts services and 3D authoring solutions for professionals and consumers anywhere in the United States or the world.  Notwithstanding the terms of this Section 5.3, Employee shall not be prohibited from (i) being a beneficial owner of not more than five percent (5%) of the outstanding stock of any class of stock which is publicly traded and which enterprise is competitive with the Business of 3D Systems, so long as Employee has no active participation in the business of such person or (ii) serving as a director or advisor to any non-profit organization or governmental entity. 
5.4    Reasonableness of Restriction.  Executive acknowledges that the foregoing non‐solicitation, non-competition and non-interference restrictions placed upon Executive are necessary and reasonable to avoid the improper disclosure or use of Confidential Information, and that it has been made clear to Executive that Executive’s compliance with Section 5 of this Agreement is a material condition to Executive’s employment by Company.  Executive further acknowledges and agrees that, if Executive breaches any of the requirements of Sections 5.1, 5.2 or 5.3, the restricted periods set forth therein shall be tolled during the time of such breach, but not for longer than the length of the restricted periods set forth therein.
Executive further acknowledges and agrees that 3D Systems has attempted to impose the restrictions contained hereunder only to the extent necessary to protect 3D Systems from unfair competition and the unauthorized use or disclosure of Confidential Information.  However, should the scope or enforceability of any restrictive covenant be disputed at any time, Executive specifically agrees that a court may modify or enforce the covenant to the full extent it believes to be reasonable under the circumstances existing at the time.
5.5    Non-Disclosure.  Executive further agrees that, other than as needed to fulfill the authorized scope of Executive’s duties with 3D Systems, Executive will not during the Employment Period or thereafter use for Executive’s benefit or for others or divulge or convey to any other person (except those persons designated by 3D Systems) any Confidential Information obtained by Executive during the period of Executive’s employment with 3D Systems.  Executive agrees to observe all Company policies and procedures concerning such Confidential Information.  Executive agrees that, except as may be permitted by written Company policies, Executive will not remove from Company’s premises any of such Confidential Information without the written authorization of Company.  Executive’s obligations under this Agreement will continue with respect to Confidential Information until such information becomes generally available from public sources through no fault of Executive’s.  During the Employment Period and thereafter Executive shall not disclose to any person the terms and conditions of Executive’s employment by 3D Systems, except:  (i) to close family members, (ii) to legal and accounting professionals who require the information to provide a service to Executive, (iii) as required by law or (iv) to the extent necessary to inform a prospective or actual subsequent employer of Executive’s duties and obligations under this Agreement.  If Executive is requested, becomes legally compelled by subpoena or otherwise, or is required by a regulatory body to make any 

disclosure that is prohibited by this Section 5.5, Executive will, except to the extent prohibited by law, promptly notify Company so that 3D Systems may seek a protective order or other appropriate remedy if 3D Systems deems such protection or remedy necessary under the circumstances.  Subject to the foregoing, Executive may furnish only that portion of Confidential Information that Executive is legally compelled or required to disclose.  The restrictions set forth herein are in addition to and not in lieu of any obligations Executive may have by law with respect to Confidential Information, including any obligations Executive may have under the Uniform Trade Secrets Act and/or similar statutes as applicable in the state of Executive’s residence and/or the state of Executive’s primary work location.  Despite the foregoing, nothing in this Agreement shall be deemed to restrict Executive from communicating with any member of the United States Congress, from giving truthful testimony in any legal proceeding instituted or maintained, or from fully and candidly cooperating in connection with any investigation, inquiry or proceeding undertaken by, any agency or representative of the United States government, any State, or any of their respective political subdivisions having authority over any aspect of Company’s business operations, nor shall any such provision be deemed to require any party to seek the authority of the other in connection therewith.  Further, the Executive is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that the Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.
5.6    Definition of Confidential Information.  As used herein, “Confidential Information” shall include, but is not limited to, the following categories of information, knowledge, or data currently known or later developed or acquired relating to 3D Systems’ business or received by 3D Systems in confidence from or about third parties, in each case when the same is not in the public domain or otherwise publicly available (other than as result of a wrongful act of an agent or employee of 3D Systems):
5.6.1    Any information concerning 3D Systems’ products, business, business relationships, business plans or strategies, marketing plans, contract provisions, actual or prospective suppliers or vendors, services, actual or anticipated research or development, new product development, inventions, prototypes, models, solutions, discussion guides, documentation, techniques, actual or planned patent applications, technological or engineering data, formulae, processes, designs, production plans or methods, or any related technical or manufacturing know-how or other information;
5.6.2    Any information concerning 3D Systems’ financial or profit data, pricing or cost formulas, margins, marketing information, sales representative or distributor lists, or any information relating to corporate developments (including possible acquisitions or divestitures);
5.6.3    Any information concerning 3D Systems’ current or prospective customer lists or arrangements, equipment or methods used or preferred by 3D Systems’ customers, or the customers or patients of customers;
5.6.4    Any information concerning 3D Systems’ use of computer software, source code, object code, or algorithms or architecture retained in or related to 3D Systems’ computer or computer systems;
5.6.5    Any personal or performance information about any 3D Systems’ employee;
5.6.6    Any information supplied to or acquired by 3D Systems under an obligation to keep such information confidential, including without limitation Protected Health Information (PHI) as that term is defined by the Health Insurance Portability and Accountability Act (HIPAA);
5.6.7    Any information, whether or not designated as confidential, obtained or observed by Executive or other 3D Systems employees during training sessions related to Executive’s work for 3D Systems; 
5.6.8    Any “trade secrets” as such term is defined by California law; and
5.6.9    Any other information treated as trade secrets or otherwise confidential by 3D Systems.
Executive hereby acknowledges that some of this information may not be a “trade secret” under applicable law.  Nevertheless, Executive agrees not to disclose it.

5.7    Inventions, Discoveries, and Work for Hire.  Executive recognizes and agrees that all ideas, works of authorship, inventions, patents, copyrights, designs, processes (e.g., development processes), methodologies (e.g., development methodologies), machines, manufactures, compositions of matter, enhancements, and other developments or improvements and any derivative works based thereon, including, without limitation, potential marketing and sales relationships, research, plans for products or services, marketing plans, computer software (including source code and object code), computer programs, original works of authorship, characters, know-how, trade secrets, information, data, developments, discoveries, improvements, modifications, technology and algorithms, whether or not subject to patent or copyright protection (the “Inventions”) that (i) were made, conceived, developed, authored or created by Executive, alone or with others, during the time of Executive’s employment, whether or not during working hours, that relate to the business of 3D Systems or to the actual or demonstrably anticipated research or development of 3D Systems, (ii) were used by Executive or other personnel of 3D Systems during the time of Executive’s employment, even if such Inventions were made, conceived, developed, authored or created by Executive prior to the start of Executive’s employment, (iii) are made, conceived, developed, authored or created by Executive, alone or with others, within one (1) year from the Termination Date and that relate to the business of 3D Systems or to the actual or demonstrably anticipated research or development of 3D Systems, or (iv) result from any work performed by Executive for 3D Systems (collectively with (i)-(iii), the “Company Inventions”) are the sole and exclusive property of Company.
Notwithstanding the foregoing, Company Inventions do not include any Inventions made, conceived, developed, authored or created by Executive, alone or with others, for which no equipment, supplies, facility or trade secret information of 3D Systems was used and which were developed entirely on Executive’s own time, unless (1) the Invention relates (A) to the business of 3D Systems, or (B) to the actual or demonstrably anticipated research or development of 3D Systems, or (2) the Company Invention results from any work performed by Executive for 3D Systems.  Employee understands that 3D Systems agrees that notwithstanding anything to the contrary in this Section 5.7, nothing in this Agreement shall apply to any Inventions that qualify fully under the provisions of Section 2870 of the California Labor Code. 
For the avoidance of doubt, Executive expressly disclaims any and all right title and interest in and to all Company Inventions.  Executive acknowledges that Executive has and shall forever have no right, title or interest in or to any patents, copyrights, trademarks, industrial designs or other rights in connection with any Company Inventions.
Executive hereby assigns to Company all present and future right, title and interest Executive has or may have in and to the Company Inventions.  Executive further agrees that (i) Executive will promptly disclose all Company Inventions to 3D Systems; and (ii) all of the Company Inventions, to the extent protectable under copyright laws, are “works made for hire” as that term is defined by the Copyright Act, 17 U.S.C. § 101, et seq.
At the request of and without charge to Company, Executive will do all things deemed by Company to be reasonably necessary to perfect title to the Company Inventions in Company and to assist in obtaining for Company such patents, copyrights or other protection in connection therewith as may be provided under law and desired by Company, including but not limited to executing and signing any and all relevant applications, assignments, or other instruments.  Executive further agrees to provide, at Company’ request, declarations or affidavits and to give testimony, in depositions, hearings or trials, in support of inventorship.  These obligations continue even after the Termination Date.  Company agrees that Executive will be reimbursed for reasonable expenses incurred in providing such assistance to Company.  In the event Company is unable, after reasonable effort, to secure Executive’s signature on any document or documents needed to apply for or prosecute any patent, copyright or other right or protection relating to any Company Invention, for any reason whatsoever, Executive hereby irrevocably designates and appoints Company and its duly 

authorized officers and agents as Executive’s agent and attorney-in-fact to act for and on Executive’s behalf to execute and file any such application or other document and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, or similar protections thereon with the same legal force and effect as if executed by Executive.
For purposes of this Agreement, a Company Invention shall be deemed to have been made during Executive’s employment if, during such period, the Company Invention was conceived, in part or in whole, or first actually reduced to practice or fixed in a tangible medium during Executive’s employment with Company.  Executive further agrees and acknowledges that any patent or copyright application filed within one (1) year after the Termination Date shall be presumed to relate to a Company Invention made during the term of Executive’s employment unless Executive can provide evidence to the contrary. 
5.8    Covenants Are Independent Elements.  The parties acknowledge that the restrictive covenants contained in this Section 5 are essential independent elements of this Agreement and that, but for Executive agreeing to comply with them, Company would not continue to employ Executive and would not provide the compensation herein.  Accordingly, the existence or assertion of any claim by Executive against Company, whether based on this Agreement or otherwise, shall not operate as a defense to Company’s enforcement of the covenants this Section 5.  An alleged or actual breach of the Agreement by the Company will not be a defense to enforcement of the provisions of Section 5 or other obligations of Executive to the Company.  
5.9    Prior Employment.  Executive hereby agrees that during the course and scope of the employment relationship with Company, Executive shall neither disclose nor use any confidential information, invention, or work of authorship derived from, developed or obtained in any prior employment relationship, and understands that any such disclosure or use would be injurious to the economic and legal interests of Company.  Executive represents that Executive has informed Company of any non-competition, non-solicitation, confidentiality, work-for-hire or similar agreements to which Executive is subject or may be bound, and has provided Company with copies of any such non-competition and non-solicitation agreements.
5.10    Return of Data.  In the event of the termination of Executive’s employment with Company for any reason whatsoever, Executive agrees to deliver promptly to Company all formulas, correspondence, reports, computer programs and similar items, customer lists, marketing and sales data and all other materials pertaining to Confidential Information, and all copies thereof, obtained by Executive during the period of Executive’s employment with Company which are in Executive’s possession or under his control.  Executive further agrees that Executive will not make or retain any copies of any of the foregoing and will so represent to Company upon termination of his employment.
5.11    Non-Disparagement.  Executive agrees that during the Employment Period and at all times thereafter, Executive will not make any statement, nor imply any meaning through Executive’s action or inaction, if such statement or implication would be adverse to the interests of 3D Systems, its customers or its vendors or may reasonably cause any of the foregoing embarrassment or humiliation; nor will Executive otherwise cause or contribute to any of the foregoing being held in disrepute by the public or any other 3D Systems customer(s), vendor(s) or employee(s).  Company agrees to instruct its officers, directors and agents speaking regarding Executive with the prior knowledge and the express approval of an executive officer or director of the Company not to disparage Executive to future employers of the Executive or others; provided, however, that nothing contained in this Section 5.11 will restrict or impede Company from (i) complying with any applicable law, legal process, regulation or stock exchange requirement, including disclosure obligations under securities laws and regulations, or a valid order of a court of competent jurisdiction or an authorized government agency or entity; (ii) making any statement required or reasonably desirable in connection with the enforcement or defense of any claim, legal proceeding or investigation involving Executive or the Company or any of their respective Affiliates; or (iii) providing information to any future 

employer or prospective employer of Executive regarding Executive’s obligations under this Agreement or any other agreement to which Executive is a party.  Nothing herein prevents disclosure, in the sole discretion of the Company and its employees, of this Agreement, or discussion of Executive’s employment with, and separation of employment from, the Company, by and among employees and other agents of Company with a business need to know such information.  The restrictions of this Section 5.11 shall apply to, but are not limited to, communication via the Internet, any intranet, or other electronic means, such as social media web sites, electronic bulletin boards, blogs, email messages, text messages or any other electronic message.  The restrictions of this Section 5.11 shall not be construed to prohibit or limit Executive, Company or any other Person from testifying truthfully in any proceeding, arbitration or governmental investigation.
5.12    Injunctive Relief and Additional Remedies for Breach.  Executive further expressly acknowledges and agrees that any breach or threatened breach of the provisions of this Section 5 shall entitle 3D Systems, in addition to any other legal remedies available to it, to obtain injunctive relief, to prevent any violation of this Section 5 without the necessity of 3D Systems posting bond or furnishing other security and without proving special damages or irreparable injury.  Executive recognizes, acknowledges and agrees that such injunctive relief is necessary to protect 3D Systems’ interest.  Executive understands that in addition to any other remedies available to 3D Systems at law or in equity or under this Agreement for violation of this Agreement, other agreements or compensatory or benefit arrangements Executive has with 3D Systems may include provisions that specify certain consequences thereunder that will result from Executive’s violation of this Agreement, which consequences may include repaying 3D Systems or foregoing certain equity awards or monies, and any such consequences shall not be considered by Executive or any trier of fact as a forfeiture, penalty, duplicative remedy or exclusive remedy.  Notwithstanding Section 8.9, the exclusive venue for any action for injunctive or declaratory relief with respect to this Section 5 shall be the state or federal courts located in San Diego County, California.   Company and Executive hereby irrevocably consent to any such courts’ exercise of jurisdiction over them for such purpose.
5.13    Notification to Third Parties.  Company may, at any time during or after the termination of Executive’s employment with Company, notify any person, corporation, partnership or other business entity employing or engaging Executive or evidencing an intention to employ or engage Executive as to the existence and provisions of this Agreement. 
5.14    Cooperation.  The parties agree that certain matters in which the Executive will be involved during the Employment Period may necessitate the Executive’s cooperation in the future.  Accordingly, following the termination of the Executive’s employment for any reason, to the extent reasonably requested by the Company, the Executive shall cooperate with the Company in connection with matters arising out of the Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive’s other activities. The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date.
		
	6.
	No Mitigation.

In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and, except as otherwise provided herein, such amounts shall not be reduced whether or not Executive obtains other employment.
		
	7.
	Clawback.

All incentive compensation paid to Executive pursuant to this Agreement or otherwise in connection with Executive’s employment with Company shall be subject to forfeiture, recovery by Company or other action pursuant to any clawback or recoupment policy which Company  may adopt from time to time.

		
	8.
	Miscellaneous.

8.1    Valid Obligation.  This Agreement has been duly authorized, executed and delivered by Company and has been duly executed and delivered by Executive and is a legal, valid and binding obligation of Company and of Executive, enforceable in accordance with its terms.
8.2    No Conflicts.  Executive represents and warrants that the performance by Executive of the duties that are reasonably expected to be performed hereunder will not result in a material breach of any agreement to which Executive is a party.
8.3    Applicable Law.  This Agreement shall be construed in accordance with the laws of the State of South Carolina (the “Applicable State Law”), without reference to South Carolina’s choice of law statutes or decisions.
8.4    Severability.  The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any one or more of the provisions hereof shall not affect the validity or enforceability of any other provision.  If any provision of this Agreement shall be prohibited by or invalid under the Applicable State Law, the prohibited or invalid provision(s) shall be deemed severed herefrom and shall be unenforceable to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement.  In the event any clause of this Agreement is deemed to be invalid, the parties shall endeavor to modify that clause in a manner which carries out the intent of the parties in executing this Agreement.
8.5    No Waiver.  The waiver of a breach of any provision of this Agreement by any party shall not be deemed or held to be a continuing waiver of such breach or a waiver of any subsequent breach of any provision of this Agreement or as nullifying the effectiveness of such provision, unless agreed to in writing by the parties.
8.6    Notices.  All demands, notices, requests, consents and other communications required or permitted under this Agreement shall be in writing and shall be personally delivered or sent by facsimile machine (with a confirmation copy sent by one of the other methods authorized in this Section), or by commercial overnight delivery service, to the parties at the addresses set forth below:
		
	To Company:
	3D Systems Corporation

333 Three D Systems Circle
Rock Hill, South Carolina  29730
Attention:  Chief Executive Officer
With a copy to the Chief Legal Officer
		
	To Executive:
	At the address and/or fax number most recently contained in Company’s records

Notices shall be deemed given upon the earliest to occur of (i) receipt by the party to whom such notice is directed, if hand delivered; (ii) if sent by facsimile machine, on the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) such notice is sent if sent (as evidenced by the facsimile confirmed receipt) prior to 5:00 p.m. Central Time and, if sent after 5:00 p.m. Central Time, on the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) after which such notice is sent; or (iii) on the first business day (other than a Saturday, Sunday or legal holiday in the jurisdiction to which such notice is directed) following the day the same is deposited with the commercial carrier if sent by commercial overnight delivery service.  Each party, by notice duly given in accordance therewith may specify a different address for the giving of any notice hereunder.

8.7    Assignment of Agreement.  This Agreement shall be binding upon and inure to the benefit of Executive and Company, their respective successors and permitted assigns and Executive’s heirs and personal representatives.  Executive may not assign any rights or obligations hereunder to any person or entity without the prior written consent of Company.  This Agreement shall be personal to Executive for all purposes.
8.8    Entire Agreement; Amendments.  Except as otherwise provided herein, this Agreement contains the entire understanding between the parties, and there are no other agreements or understandings between the parties with respect to Executive’s employment by Company and Executive’s obligations thereto other than Executive’s indemnification or related rights under Company’s certificate of incorporation or Bylaws or under any indemnification agreement between Company and Executive and Executive’s rights under any equity incentive plans or bonus plans of Company.  Subject to applicable law, Executive will be provided indemnification to the maximum extent permitted by the Company’s Bylaws and certificate of incorporation, including, if applicable, any directors and officers insurance policies, with such indemnification to be on terms determined by the Board or any of its committees, but on terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement.  Executive acknowledges that Executive is not relying upon any representations or warranties concerning Executive’s employment by Company except as expressly set forth herein.  No amendment or modification to the Agreement shall be valid except by a subsequent written instrument executed by the parties hereto.  
8.9    Dispute Resolution and Arbitration.  The following procedures shall be used in the resolution of disputes:
8.9.1    Dispute.  In the event of any dispute or disagreement between the parties under this Agreement (excluding an action for injunctive or declaratory relief as provided in Section 5.12), the disputing party shall provide written notice to the other party that such dispute exists.  The parties will then make a good faith effort to resolve the dispute or disagreement.  If the dispute is not resolved upon the expiration of fifteen (15) days from the date a party receives such notice of dispute, the entire matter shall then be submitted to arbitration as set forth in Section 8.9.2.
8.9.2    Arbitration.  Should any legal claim (other than those excepted below) arising out of or in any way relating to this Agreement or Executive's employment or the termination of Executive's employment not be resolved by negotiation or mediation, it shall be subject to binding and final arbitration in Rock Hill, South Carolina, which is in York County. The fees of the arbitrator and any other fees for the administration of the arbitration that would not normally be incurred if the action were brought in a court of law shall be paid by Company.  However, Executive shall be required to pay the amount of those fees equal to that which Executive would have been required to pay to file a lawsuit in court.  Any demand for arbitration shall be in writing and must be communicated to the other party prior to the expiration of the applicable statute of limitations.  Unless otherwise provided herein, the arbitration shall be conducted by a single arbitrator in accordance with the Employment Arbitration Rules and Mediation Procedures published by the American Arbitration Association.  If the arbitrator selected as set forth herein determines that this location constitutes a significant hardship on the Executive and constitutes an impermissible barrier to Executive’s efforts to enforce Executive’s statutory or contractual rights, such arbitration may be conducted in some other place determined to be reasonable by the arbitrator.  The arbitrator shall be selected by mutual agreement of the parties.  If the parties cannot agree on an arbitrator within thirty (30) days after written request for arbitration is made by one party to the controversy, a neutral arbitrator shall be appointed according to the procedures set forth in the American Arbitration Association Employment Arbitration Rules and Mediation Procedures.  In rendering the award, the arbitrator shall have the authority to resolve only the legal dispute between the parties, shall not have the authority to abridge or enlarge substantive rights or remedies available under existing law, and shall determine the rights and obligations of the parties according to the substantive laws of the Applicable State Law and any applicable federal law.  In addition, the arbitrator's decision and award shall be in writing and signed by the arbitrator, and accompanied by a concise written explanation of 

the basis of the award. The award rendered by the arbitrator shall be final and binding, and judgment on the award may be entered in any court having jurisdiction thereof. The arbitrator is authorized to award any party a sum deemed proper for the time, expense, and trouble of arbitration, including arbitration fees and attorneys’ fees.
8.9.3    Types of Claims.  All legal claims brought by Executive or Company related to this Agreement, the employment relationship, terms and conditions of Executive’s employment, and/or termination from employment are subject to this dispute resolution procedure.  These include, by way of example and without limitation, any legal claims based on alleged discrimination or retaliation on the basis of race, sex (including sexual harassment), religion, national origin, age, disability or other protected classification, whether based on state or federal law; payment of wages, bonuses, or commissions; workers’ compensation retaliation; defamation; invasion of privacy; infliction of emotional distress and/or breach of an express or implied contract. Disputes and actions excluded from Section 8.9 are:  (1) claims for workers’ compensation or unemployment benefits; (2) claims for benefits under a Company plan or program that provides its own process for dispute resolution; (3) claims for declaratory or injunctive relief (any such proceedings will be without prejudice to the parties’ rights under Section 8.9 to obtain additional relief in arbitration with respect to such matters); (4) claims for unfair labor practices filed with the National Labor Relations Board; and (5) actions to compel arbitration or to enforce or vacate an arbitrator's award under Section 8.9, such action to be governed by the Federal Arbitration Act (“FAA”) and the provisions of Section 8.9.  Nothing in this Agreement shall be interpreted to mean that Executive is precluded from filing complaints with the Equal Employment Opportunity Commission, the National Labor Relations Board or any similar state or federal agency. Any controversy over whether a dispute is arbitrable or as to the interpretation of Section 8.9 with respect to such arbitration will be determined by the arbitrator.
8.10    Survival.  For avoidance of doubt, the provisions of Sections 4.5, 5, 7 and 8 of this Agreement shall survive the expiration or earlier termination of the Employment Period.
8.11    Headings.  Section headings used in this Agreement are for convenience of reference only and shall not be used to construe the meaning of any provision of this Agreement.
8.12    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument.  Signatures delivered via facsimile or electronic file shall be the same as original signatures.
8.13    Taxes.  Executive shall be solely responsible for taxes imposed on Executive by reason of any compensation and benefits provided under this Agreement and all such compensation and benefits shall be subject to applicable withholding.
8.14    Section 409A of the Code.  It is intended that this Agreement will comply with Section 409A of the Code (and any regulations and guidelines issued thereunder) to the extent the Agreement is subject thereto, and the Agreement shall be interpreted on a basis consistent with such intent.  If an amendment of the Agreement is necessary in order for it to comply with Section 409A, the parties hereto will negotiate in good faith to amend the Agreement in a manner that preserves the original intent of the parties to the extent reasonably possible.  No action or failure by Company in good faith to act, pursuant to this Section 8.14, shall subject Company to any claim, liability, or expense, and Company shall not have any obligation to indemnify or otherwise protect Executive from the obligation to pay any taxes pursuant to Section 409A of the Code.
In addition, notwithstanding any provision to the contrary in this Agreement, if Executive is deemed on the date of Executive’s “separation from service” (within the meaning of Treas. Reg. Section 1.409A‐1(h)) to be a “specified employee” (within the meaning of Treas. Reg. Section 1.409A‐1(i)), then with regard to any payment that is required to be delayed pursuant to Section 409A(a)(2)(B) of the Code (the “Delayed Payments”), such payment shall not be made prior to the earlier of (i) the expiration of the six (6) month period measured from the date of Executive’s “separation from service” and (ii) the date of Executive’s death.  Any payments due under this Agreement other than the Delayed Payments shall be paid in accordance with the normal payment dates specified herein.  In no case will the delay of any of the Delayed Payments by 

Company constitute a breach of Company’s obligations under this Agreement.  For the provision of payments and benefits under this Agreement upon termination of employment, reference to Executive’s “termination of employment” (and corollary terms) with Company shall be construed to refer to Executive’s “separation from service” from Company (as determined under Treas. Reg. Section 1.409A‐1(h), as uniformly applied by Company) in tandem with Executive’s termination of employment with Company.
In addition, to the extent that any reimbursement or in-kind benefit under this Agreement or under any other reimbursement or in-kind benefit plan or arrangement in which Executive participates during the term of Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the amount eligible for reimbursement or in-kind benefit in one calendar year may not affect the amount eligible for reimbursement or in-kind benefit in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) the right to reimbursement or an in-kind benefit is not subject to liquidation or exchange for another benefit, and (iii) subject to any shorter time periods provided herein, any such reimbursement of an expense or in-kind benefit must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.
If the sixty (60)-day period following a “separation from service” begins in one calendar year and ends in a second calendar year (a “Crossover 60-Day Period”), then any severance payments that would otherwise occur during the portion of the Crossover 60-Day Period that falls within the first year will be delayed and paid in a lump sum during the portion of the Crossover 60-Day Period that falls within the second year.
8.15    Limitation on Payments. 
8.15.1    Parachute Payments.  In the event that the payments and benefits provided for in this Agreement or other payments and benefits payable or provided to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 8.15, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s payments and benefits under this Agreement and other payments or benefits (the “280G Amounts”) will be either:
(i)delivered in full, or
(ii)delivered as to such lesser extent which would result in no portion of such payments or benefits being subject to excise tax under Section 4999 of the Code,
whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of 280G Amounts, notwithstanding that all or some portion of the 280G Amounts may be taxable under Section 4999 of the Code.
8.15.2    Reduction Order.  In the event that a reduction of 280G Amounts is being made in accordance with Section 8.15.1, the reduction will occur, with respect to the 280G Amounts considered parachute payments within the meaning of Section 280G of the Code, in the following order:
i.reduction of cash payments in reverse chronological order (that is, the cash payment owed on the latest date following the occurrence of the event triggering the excise tax will be the first cash payment to be reduced);
ii.cancellation of equity awards that were granted “contingent on a change in ownership or control” within the meaning of Code Section 280G in the reverse order of date of grant of the awards (that is, the most recently granted equity awards will be cancelled first);
iii.reduction of the accelerated vesting of equity awards in the reverse order of date of grant of the awards (that is, the vesting of the most recently granted equity awards will be cancelled first); and

iv.reduction of employee benefits in reverse chronological order (that is, the benefit owed on the latest date following the occurrence of the event triggering the excise tax will be the first benefit to be reduced).
In no event will Executive have any discretion with respect to the ordering of payments.
8.15.3    Accounting or Valuation Firm.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 8.15 will be made in writing by a nationally recognized accounting or valuation firm (the “Firm”) selected by the Company, whose determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section 8.15, the Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Firm such information and documents as the Firm may reasonably request in order to make a determination under this Section 8.15. The Company will bear all costs and make all payments for the Firm’s services relating to any calculations contemplated by this Section 8.15.
8.16    Payment by Subsidiaries.  Executive acknowledges and agrees that Company may satisfy its obligations to make payments to Executive under this Agreement by causing one or more of its subsidiaries to make such payments to Executive.  Executive agrees that any such payment made by any such subsidiary shall fully satisfy and discharge Company’s obligation to make such payment to Executive hereunder (but only to the extent of such payment).

[ Signature Page to Follow ]

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written, to be effective at the Effective Date.
EXECUTIVE
/s/ Philip C. Schultz        
Philip Schultz

3D Systems Corporation
/s/ Andrew M. Johnson        
By:  Andrew M. Johnson
Title:  Executive Vice President, Chief Legal Officer and Secretaryosur-ex1021_171.htm

 

Exhibit 10.21

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is entered into as of January 1, 2019 (the “Effective Date”), between Kathleen G. Weber (“Employee”), DNA Genotek, Inc., (“DNA Genotek”) and OraSure Technologies, Inc. (“OraSure”).  Unless otherwise specified herein, the “Company” in this Agreement shall mean both DNA Genotek and OraSure, individually and collectively.

WHEREAS Employee has been employed by OraSure since 2012 and Employee is currently employed by OraSure as its Senior Vice President, General Manager, Consumer Products;

 

AND WHEREAS OraSure would like to promote Employee to the position of Executive Vice President, Business Unit Leader, Molecular Solutions with DNA Genotek, a Canadian corporation that is a subsidiary of OraSure;

 

AND WHEREAS Employee wishes to accept this promotion and continue her employment pursuant to the terms of this Agreement.

NOW, THEREFORE, in consideration of this promotion and the mutual promises made herein, intending to be legally bound, the parties hereby agree as follows:

 

1.Services.

1.1Employment.  Subject to the terms hereof, the Company agrees to employ Employee as DNA Genotek’s Executive Vice President, Business Unit Leader, Molecular Solutions (the “Position”), and Employee hereby accepts such employment in accordance with the terms and conditions of this Agreement.    

1.2Duties.  Upon the Employment Date, Employee shall have such powers and duties that are (a) commensurate with the Position, (b) set forth in Exhibit A attached to this Agreement, and (c) otherwise determined from time to time by the Board of Directors of OraSure (the “Board of Directors”) or the Chief Executive officer of OraSure (the “CEO”).  Employee’s primary place of work shall be DNA Genotek’s headquarters, at its present location in Ottawa, Ontario Canada. Subject to the provisions of Section 6 hereof, Employee’s position and duties may be changed and Employee’s primary place of work may be relocated from time to time during the Term (as defined below) of this Agreement, and such changes shall not be considered a material change in circumstance that would invalidate the provisions of this Agreement which, in any event, shall survive such change or changes.  Prior to January 1, 2022, the Company and Employee shall determine if Employee shall continue to serve in Canada or return to work exclusively for OraSure or a different subsidiary of OraSure.  

1.3Outside Activities.  Employee acknowledges that Employee is a fiduciary of the Company and Employee agrees to not take any actions that would conflict with such fiduciary duties.  Employee covenants to devote Employee’s full-time and skill to the duties contemplated herein.  Employee shall obtain the consent of the Board of Directors or the CEO before she engages, either directly or indirectly, in any other professional or business activities that may require an appreciable portion of Employee’s time.

1.4Direction of Services.  Employee shall at all times report directly to, and discharge her duties in consultation with and under the supervision and direction of, the CEO.

2.Term.  Employee shall begin her employment under this Agreement on the Effective Date, or such earlier date as may be agreed to by the parties ("Employment Date”).  Thereafter, and subject to Section 6 below, the Company shall continue to employ Employee for an indefinite term (“Term”).  The Company shall recognize Employee’s service to date with OraSure or any of its affiliates or subsidiaries in accordance with its obligations under the Employment Standards Acts, 2000. 

 

  

 

3.Compensation and Expenses.

3.1Salary.  As compensation for services under this Agreement, the Company shall pay to Employee a base salary of $355,000 USD per annum.  Such salary will be subject to review by the Board of Directors on an annual basis and may be increased from time to time in the discretion of the Board of Directors.  Payment shall be made in accordance with the Company’s normal payroll practices as in effect from time to time, less all amounts required by law or authorized by Employee to be withheld or deducted.  For all purposes under this Agreement, the term “salary” shall mean the regular annual base salary of Employee payable under this Section 3.1, as increased.

3.2Bonus.  In addition to the salary described in Section 3.1 above, Employee shall be entitled to participate in the incentive plan established by OraSure each year for the payment of cash bonuses to senior executive officers of OraSure and its subsidiaries (including DNA Genotek) (each, a “Bonus Plan”), on such terms as may be approved by the Board of Directors or its compensation committee (the “Compensation Committee”) in its sole discretion with respect to each Bonus Plan.  With respect to each Bonus Plan, (a) Employee shall have a target bonus amount as determined by the Board of Directors or Compensation Committee which is at least equal to 40% of Employee’s salary and (b) cash bonuses payable to Employee shall be determined in the same manner as the cash bonuses paid to other senior executive officers of OraSure and the Company under the applicable Bonus Plan with respect to the same time period.    

3.3Long-Term Incentive Awards.  Employee shall be entitled to participate in each long-term incentive equity policy or plan that may from time to time be adopted by the Board of Directors or the Compensation Committee, in its sole discretion (an “LTIP”) and, with respect to each LTIP, (a) Employee shall be entitled to annual awards ranging from between 95% to 155% of her salary (with the target set at a minimum of 125% of her salary), as determined by the Board of Directors or the Compensation Committee and (b) equity awards or other benefits provided to Employee under any such LTIP shall be determined in the same manner as the awards or other benefits provided under such policies or plans to other senior executive officers of OraSure and the Company with respect to the same time period.  All equity awards granted to Employee on or after the Effective Date shall, to the extent then unvested, immediately vest (i) in the event of a Change of Control (as defined herein) or (ii) in the event Employee’s employment is terminated for Good Reason (as defined herein) pursuant to Section 6.4 or without Cause (as defined herein) pursuant to Section 6.5 during a Change of Control Period (as defined herein), and 50% of such awards shall, to the extent then unvested, immediately vest in the event Employee’s employment is terminated for death or Disability (as defined herein) pursuant to Section 6.1, Good Reason pursuant to Section 6.4 or without Cause pursuant to Section 6.5 during any period other than a Change of Control Period (as defined herein).

3.4Employee Benefits.  Employee shall be entitled to receive or participate in employee benefits, including without limitation medical and dental insurance programs, qualified and non-qualified profit sharing or pension plans, disability plans, medical reimbursement plans, and life insurance programs, which may from time to time be made available by the Company to other senior executive officers of the Company and to the extent available to Employee while working in Canada.  The Company may change or discontinue such benefits at any time in its sole discretion; provided that the benefits provided to Employee shall be determined in the same manner as the benefits provided to other senior executive officers under such plans with respect to the same time period.  The following specific benefits will be provided to Employee:

3.4.1Visas and Work Permits.  The Company will provide all legal services required for Employee and her husband to comply with Canadian immigration, labour and employment laws prior to Employee’s and her husband’s entry into Canada at the Company’s expense.  The Company will secure all appropriate visas and temporary work permits required for Employee’s and her husband’s legal employment as expatriates in Canada at the Company’s expense.  This Agreement is conditional upon Employee securing all visas and/or temporary work permits required to execute Employee’s duties under this Agreement in Canada.  It is a fundamental term of this Agreement that Employee retains the ability to work in Canada during the Term of this Agreement. 

3.4.2  Benefit Plans.  While on assignment in Canada, Employee will be eligible to participate in the OraSure 401(k) and group health, welfare and insurance plans available to other employees based in the United States, to the extent permitted by applicable law.  Employee will be required to contribute towards the cost of coverage through payroll deductions at the same rates as employees based in the United States.  In addition, 

 

	
	
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the Company will provide Employee with a Company-paid Canadian health insurance plan that provides coverage for services received in Canada.

3.4.3  Relocation Expenses.  The Company will reimburse the Employee for up to $10,000 USD for (a) the cost of establishing her residence in Canada, including furniture delivery and utility set up fees; (b) initial costs for the use of up to two of Employee’s vehicles in Canada, such as registration and driver’s license fees, and (c) fees and expenses associated with the review and negotiation of this Agreement by Employee’s legal counsel.

3.4.4Housing Expenses.  The Company will reimburse Employee for the following expenses in an aggregate amount of up to $3,065 USD per month:  (a) rental of an apartment in an area within reasonable commuting distance to the Company’s Ottawa offices; and (b) to the extent not covered by the foregoing rental, the cost of utility services to the Employee’s apartment, including internet and cable TV service.  If Employee elects housing which results in a cost in excess of this allowance, Employee will be responsible for paying such excess without reimbursement by the Company.

3.4.5  Tax Equalization/Tax Services. Because during the Term Employee will be a United States citizen performing services in Canada, Employee may be subject to aggregate personal income tax in the United States and Canada on compensation and benefits earned from the Company (“Company Compensation”) and on other income (“Other Income”) that may be greater than the personal income tax that Employee would have been required to pay had Employee remained working in the United States (such tax that Employee would have been required to pay had Employee remained working in the United States, the “Theoretical U.S. Tax,” and the actual tax that Employee will owe in both the United States and Canada, the “Actual Tax”).  In order to protect Employee from incurring the additional cost of the Actual Tax over and above the Theoretical U.S. Tax (the “Supplemental Tax”), the Company will pay (i) the full amount of the Supplemental Tax with respect to the Company Compensation, (ii) up to a maximum of $10,000 USD per year of Supplemental Tax with respect to the Other Income and (iii) any additional tax necessary to put the Employee in the same after-tax position that Employee would have been in (taking into account any and all applicable federal, state, local and foreign income and employment taxes) had the Company not provided the amounts described in items (i) and (ii) (the amount determined under items (i) through (iii) of this sentence, the “Tax Equalization Benefit”).  In order to process the Tax Equalization Benefit, an accounting firm selected by the Company will assist in preparing and filing Employee’s income tax returns required in the United States and Canada.  Each year during the Term, the Company will make actual payments of income taxes for Employee in the United States and Canada.  During the Term, the Company will deduct from Employee’s salary each pay period an amount that the Company, acting in good faith, determines is required by law to be withheld from the Company Compensation by taxing authorities in the United States and Canada.  Following the end of each taxable year, the Company will provide Employee with a statement of tax liability that will indicate the amount of the Theoretical U.S. Tax, the Actual Tax and the Tax Equalization Benefit.  If such statement indicates that the Company owes Employee additional Supplemental Tax or that Employee owes the Company any additional tax, the party owing such tax will remit it to the other party within 60 days.  Any determination required under this Section 3.4.5 shall be made by the Company in its sole discretion.

3.4.6  Expense Allowance.  The Company will provide Employee with an annual allowance of $3,544 USD, to cover the (a) difference between (i) insuring two vehicles in Canada in comparison to the current cost to the Employee and her husband to insure two vehicles in the United States; (ii) using two cell phones in Canada in comparison to the current cost to the Employee and her husband to use two cellphones in the United States, (b) premiums for renter’s insurance for Employee’s apartment in Canada and (c) the cost for obtaining and renewing drivers’ licenses for Employee and her husband and the registration of their two (2) vehicles in Canada.  

3.4.7Home Leave.  The Company will pay the expenses for Employee and her husband to travel to the U.S. twice during each twelve-month period.  To the extent Employee elects to drive to the U.S., such expenses shall consist of the then-current mileage allowance permitted under U.S. Internal Revenue Service regulations, plus tolls.

3.4.8Repatriation.  In connection with Employee’s relocation back to the U.S. after the end of Employee’s assignment in Canada, the Company will pay the expenses for Employee and her husband to travel and move their household goods back to the U.S.  To the extent Employee elects to drive to the U.S., such 

 

	
	
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travel expense shall consist of the then-current mileage allowance permitted under U.S. Internal Revenue Service regulations plus tolls.

3.4.9Currency Exchange.  Employee shall be responsible for determining the extent to which the compensation and other payments she receives hereunder are converted to Canadian dollars and brought to Canada.  To the extent that the U.S./Canadian dollar exchange rate varies significantly from the exchange rate in effect on the Effective Date, the Company and Employee agree to jointly determine whether any of the foregoing benefits need to be adjusted to offset any adverse impact to Employee from these fluctuations.

3.4.10Vacation and Holidays.  Employee shall remain subject to OraSure’s policy for paid-time off, or PTO.  In addition, Employee will receive paid holidays in accordance with the declared legal and customary holidays in Canada.

3.5Expenses.  The Company shall reimburse Employee for all reasonable and necessary expenses incurred in carrying out her duties under this Agreement, subject to compliance with the Company’s reasonable policies relating to expense reimbursement.  Expenses subject to reimbursement under this Section 3.5 shall include, but not be limited to, the cost of business-related travel, lodging and meals and the fees and expenses incurred by Employee to maintain her membership in professional associations and obtain continuing professional education reasonably required in connection with Employee’s performance of her duties under this Agreement.  All reimbursements under this Section 3.5 will be made as soon as practicable after submission of any required documentation, in compliance with the Company’s reasonable policies relating to expense reimbursement.

3.6Fees.  From and after the Employment Date, all compensation earned by Employee, other than pursuant to this Agreement, as a result of services performed on behalf of the Company or as a result of or arising out of any work done by Employee in any way related to the scientific or business activities of the Company shall belong to the Company.  Employee shall pay or deliver such compensation to the Company promptly upon receipt.  For the purposes of this provision, “compensation” shall include, but is not limited to, all professional and nonprofessional fees, lecture fees, expert testimony fees, publishing fees, royalties, and any related income, earnings, or other things of value; and “scientific or business activities of the Company” shall include, but not be limited to, any project or projects in which the Company is involved and any subject matter that is directly or indirectly researched, tested, developed, promoted, or marketed by the Company.

4.Intentionally Omitted.

5.Confidentiality Agreement.  Employee has previously entered into a confidentiality agreement with OraSure, dated November 29, 2012 (the “Confidentiality Agreement”).  The parties hereby agree to adopt that Confidentiality Agreement mutatis mutandis so that its provisions are extended to protect DNA Genotek and OraSure and to govern the Employee’s relationship with the Company under this Agreement.  Employee’s compliance with the terms of the Confidentiality Agreement is a material requirement of this Agreement.  Any breach of the Confidentiality Agreement that is materially detrimental to the Company and that, if capable of being cured, is not cured within 30 days of written notice thereof from the Company to Employee shall constitute a material breach of this Agreement.  Notwithstanding the foregoing, (i) nothing in this Agreement or the Confidentiality Agreement shall prohibit the Employee from reporting possible violations of law or a regulation to any governmental agency or entity or self-regulatory organization or making disclosures that are protected under law, including the whistleblower provisions of U.S. federal law or regulation; and (ii) in accordance with the U.S. Defend Trade Secrets Act of 2016, Employee shall not be held criminally or civilly liable under any U.S. federal or state trade secret law for the disclosure of a trade secret that:  (A) is made (i) in confidence to a U.S. federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

6.Termination.

6.1Termination Upon Death or Disability.  Employee’s employment under this Agreement shall terminate immediately upon Employee’s death or Disability.  The term “Disability” means any medically determinable illness or ailment, whether physical or mental, that can be expected to result in death or can 

 

	
	
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be expected to last for a continuous period of not less than twelve (12) months, which renders Employee unable to engage in any substantial gainful activity and perform the bona fide occupational requirements associated with her Position, even with accommodations being offered by the Company up to the point of Undue Hardship (as defined below).  For the purpose of this subsection, the Parties acknowledge and agree that “Undue Hardship” shall occur when: (a) an accommodation or set of accommodations is so costly that it alters the essential nature of the enterprise or affects its viability, after having taken into consideration the presence of any available outside sources of funding to assist in funding the accommodation; or (b) where an accommodation is likely to cause significant health and safety risks, either to the Employee or other employees of the Company.

6.2Termination by Employee.  Employee may terminate her employment under this Agreement by ninety (90) days’ written notice to the Company.

6.3Termination by the Company for Cause.  Employee’s employment under this Agreement may be terminated by the Company at any time for Cause.  Only the following actions, failures, or events by or affecting Employee shall constitute “Cause” for termination of Employee by the Company:  (i) willful and continued failure by Employee to substantially perform her duties provided herein after a written demand for substantial performance is delivered to Employee by the CEO or the Board of Directors, which demand identifies with reasonable specificity the manner in which Employee has not substantially performed her duties, and Employee’s failure to comply with such demand within a reasonable time, which shall not be less than thirty (30) days after Employee’s receipt of such demand; (ii) the engaging by Employee in gross misconduct or gross negligence materially injurious to the Company, which if capable of being cured, is not cured within 30 days of written notice thereof from the CEO or the Board of Directors to Employee; (iii) the commission of any act in direct competition with or materially detrimental to the best interests of the Company, which if capable of being cured, is not cured within 30 days of written notice thereof from the CEO or the Board of Directors to Employee; (iv) Employee’s conviction of an indictable criminal offense in Canada or a felony in the United States of America; (v) the Employee’s failure to meet the conditions stipulated in Subsection 3.4.1 of this Agreement; or (vi) any other act or omission or series of acts or omissions that constitute just cause for dismissal under the laws of Ontario or the laws applicable therein.  Notwithstanding the foregoing, Employee shall not be deemed to have been terminated by the Company for Cause unless and until there shall have been delivered to her a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board of Directors finding that, in the good faith opinion of the Board of Directors, the Company has Cause for the termination of the employment of Employee as set forth in any of clauses (i) through (vii) above and specifying the particulars thereof in reasonable detail.  

6.4Termination by Employee With Good Reason.  Employee may terminate her employment under this Agreement for Good Reason; provided that (i) Employee gives written notice to the Board of Directors within sixty (60) days of the event constituting Good Reason; (ii) the Company has not cured the event giving rise to such notice within thirty (30) days of receipt of Employee’s notice; and (iii) Employee resigns her employment within thirty (30) days following the expiration of such cure period.  The term “Good Reason” shall mean any of the following actions that are taken without Employee’s prior written consent:  (a) a material breach of this Agreement by the Company (or its successor); (b) a material diminution in Employee’s base compensation or authority, duties or responsibilities; (c) a material change in Employee’s reporting obligation from the CEO to another employee of DNA Genotek or OraSure; or (d) a relocation of Employee’s principal worksite that increases Employee’s one-way commute by more than 30 miles; provided that a determination by the Company that Employee will relocate back to the United States will not be deemed to be a Good Reason termination for purposes of this Agreement.  

6.5Termination by the Company Without Cause.  

The Company may terminate Employee’s employment under this Agreement without Cause by ninety (90) days’ written notice to Employee at any time in accordance with Section 6.7 below.  

6.6Definitions.  For purposes of this Agreement, the term “Change of Control Period” shall mean the period which begins sixty (60) days prior to the occurrence of a Change of Control and ends eighteen (18) months thereafter.  For purposes of this Agreement, the term “Change of Control” shall mean a change of control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A pursuant to the U.S. Securities Exchange Act of 1934 (the “Exchange Act”); provided, however, that a change of control shall only be deemed to have occurred at such time as (i) any person, or more than one person acting as a group 

 

	
	
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within the meaning of Section 409A of the Internal Revenue Code (the “Code”) and the regulations issued thereunder, acquires ownership of stock of OraSure or DNA Genotek that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of OraSure or DNA Genotek; (ii) any person, or more than one person acting as a group within the meaning of Code Section 409A and the regulations issued thereunder, acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition) ownership of stock of OraSure or DNA Genotek possessing thirty percent (30%) or more of the total voting power of DNA Genotek’s stock; (iii) a majority of the members of the Board of Directors of OraSure is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board of Directors before the date of the appointment or election; or (iv) a person, or more than one person acting as a group within the meaning of Code Section 409A and the regulations issued thereunder, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition) assets from OraSure or DNA Genotek that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all the assets of OraSure or DNA Genotek immediately before such acquisition or acquisitions.  Notwithstanding the foregoing, a Change of Control shall not occur by virtue of the acquisition of shares or assets of DNA Genotek by one or more affiliate(s) of OraSure.

6.7Compensation Upon Termination.

6.7.1Termination Upon Death or Disability, by Employee (Other Than for Good Reason) or for Cause.  In the event of a termination of Employee’s employment under Sections 6.1, 6.2 or 6.3, all salary and benefits shall cease on the date of termination, subject to the terms of any benefit plans then in force and applicable to Employee, and the Company shall have no further liability or obligation hereunder by reason of such termination, save and except as stated herein.  In the event of a termination of Employee’s employment under Sections 6.1, 6.2 or 6.3, Employee or her estate, as applicable shall be paid all salary earned under Section 3.1 through the date of termination on the next regularly scheduled payroll date following the termination date along with all other payments and benefits that are owing to Employee under the Employment Standards Act, 2000 (“Accrued Salary and Benefits”).  With respect to terminations under Sections 6.1 and 6.2 only, Employee or her estate as applicable, shall receive, in addition to the foregoing, any bonus that has been approved by the Board of Directors or Compensation Committee prior to the date of termination but not yet paid (the “Accrued Bonus”), payable at the time that cash bonuses are or would otherwise be payable to other officers of the Company in respect of such year.  In the event of a termination under Sections 6.1 or 6.2 occurs after June 30 in any given year), Employee or her estate, as applicable, shall receive a prorated portion of any cash bonus, at Employee’s target bonus percentage of base salary (subject to adjustment for bonus pool funding as determined by the Board of Directors), for the calendar year in which termination occurs (calculated based on the number of days in the calendar year that have passed prior to Employee’s termination), payable at the time that cash bonuses are or would otherwise be payable to other officers of the Company in respect of such year (the “Prorated Bonus”).  For greater certainty, in the event a termination under Sections 6.1 or 6.2 occurs on or before June 30 in any given year, Employee or her estate, as applicable, shall not receive a Prorated Bonus. The Accrued Salary and Benefits and Accrued Bonus are herein referred to collectively as the “Accrued Obligations.”  

6.7.2Termination Without Cause or Upon Good Reason.  In the event of a termination of Employee’s employment under Sections 6.4 or 6.5 of this Agreement, Employee: 

(i)shall receive Accrued Obligations;

(ii)shall receive:  (A) if such termination does not occur during a Change of Control Period, a lump sum payment (less applicable withholdings) equivalent to twelve (12) months of Employee’s annual salary; or (B) if such termination occurs during a Change of Control Period, a lump sum payment (less applicable withholdings) equivalent to twenty-four (24) months of the Employee’s annual salary; 

(iii)shall receive, as a component of severance, a cash bonus for the calendar year in which termination occurs equal to Employee’s target bonus for such year established pursuant to Section 3.2; 

(iv)if Employee validly elects to receive continuation coverage under OraSure’s group health plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and if such termination is for Good Reason pursuant to Section 6.4 or without Cause pursuant to Section 6.5 and does not occur during a Change of Control Period, the Company shall reimburse Employee for the applicable premium 

 

	
	
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otherwise payable for COBRA continuation coverage for such coverage for a period of twelve (12) months after the date of termination, but only with respect to the portion of such premium that exceeds the monthly amount charged to active employees of the Company for the same coverage.  If such termination is for Good Reason pursuant to Section 6.4 or without Cause pursuant to Section 6.5 and occurs during a Change of Control Period, the Company shall reimburse Employee for the applicable premium otherwise payable for COBRA continuation coverage for such coverage for a period for the shorter of either (x) twenty-four (24) months after the date of termination; or (y) the date Employee is no longer eligible for COBRA, but only with respect to the portion of such premium that exceeds the monthly amount charged to active employees of the Company for the same coverage; and 

(v) shall receive accelerated vesting as described in Section 3.3 herein.

The amounts payable under clauses (ii), (iii) and (iv) are collectively referred to as “Severance.”  Subject to Section 6.8, all Severance payments will be made (or commence) under this Section 6.7.2 on the 90th day after termination of employment hereunder.  As a condition to receipt of Severance, Employee shall sign, deliver and not revoke the U.S. Release Agreement, in the form and substance set forth in Exhibit B, hereto, and the Canadian Release Agreement, in form and substance set forth in Exhibit C hereto, releasing all claims related to Employee’s employment, other than those that cannot be released as a matter of law.  The Severance shall be in lieu of and not in addition to any other severance arrangement maintained by the Company, and shall be offset by any monies Employee may owe to the Company.  The Company’s obligation to pay the amounts stated in clauses (ii), (iii) and (iv) of this Section 6.7.2 shall terminate if, during the period commencing on termination of employment and continuing until all severance payments have been made by the Company, Employee fails to comply with Sections 9 or 13 of this Agreement or with the Confidentiality Agreement.

6.7.3Parachute Payment.  In the event that (i) Employee becomes entitled to any payments or benefits hereunder or otherwise from the Company or any of its affiliates which constitute a “parachute payment” as defined in Code Section 280G (the “Total Payments”) and (ii) Employee is subject to an excise tax imposed under Code Section 4999 (the “Excise Tax”), then, if it would be economically advantageous for Employee, the Total Payments shall be reduced by an amount (including zero) that results in the receipt by Employee on an after tax basis (including the applicable U.S. federal, state and local income taxes, and the Excise Tax) of the greatest Total Payments, notwithstanding that some or all of the portion of the Total Payments may be subject to the Excise Tax.  If a reduction in Total Payments is required pursuant to the preceding sentence, the reduction will occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for Employee.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).  Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Total Payments being subject to taxes pursuant to Code Section 409A (as defined below) that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, will be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows:  (A) as a first priority, the modification will preserve to the greatest extent possible, the greatest economic benefit for Employee as determined on an after-tax basis; (B) as a second priority, Payments that are contingent on future events (e.g., being terminated without Cause), will be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A will be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A.  All calculations hereunder shall be performed by a nationally recognized independent accounting firm selected by the Company, with the full cost of such firm being borne by the Company.  Any determinations made by such firm shall be final and binding on Employee and the Company.  

 

6.8Section 409A.  This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”) (to the extent applicable) and the parties hereto agree to interpret, apply and administer this Agreement in the least restrictive manner necessary to comply therewith and without resulting in any increase in the amounts owed hereunder by the Company.  Notwithstanding any other provision of this Agreement to the contrary, if Employee is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code, as amended (the “Code”) at the time of Employee’s termination of employment and any payment under this Section 6 would otherwise subject Employee to any tax, interest or penalty imposed under Code Section 409A (or any regulation promulgated thereunder) if the payment or benefit would commence as set forth in this Section 6, then the payment due under this Section 6 shall not be made (or commence) until the first day which 

 

	
	
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is at least six (6) months after the date of the Employee’s termination of employment. All payments, which would have otherwise been required to be made to Employee over such six (6) month period, shall be paid to Employee in one lump sum payment as soon as administratively feasible after the first day which is at least six months after the date of Employee’s termination of employment with the Company.  For purposes of the application of Code Section 409A, each payment in a series of payments will be deemed a separate payment.  Notwithstanding anything herein to the contrary, except to the extent any expense, reimbursement or in-kind benefit provided to the Employee does not constitute “nonqualified deferred compensation” within the meaning of Code Section 409A, and its implementing regulations and guidance, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to the Employee during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Employee in any other calendar year, (ii) the reimbursements for expenses for which the Employee is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

6.9  Employment Standards. It is the intent that the payments provided for in Section 6 of this Agreement are inclusive of Employee’s statutory entitlements under the Employment Standards Act, 2000 (“ESA”).  It is also the intent of the parties that this Agreement is to be compliant with the ESA in all respects. The provisions of the ESA, as they may from time to time be amended, are deemed to be incorporated herein and shall prevail if greater than the entitlements set out in this Agreement. In the event that any of Employee’s rights under the ESA exceed the contractual entitlements in this Agreement, then those rights shall replace those contractual entitlements and no further entitlements or payments are due to the Employee pursuant to the ESA or at common law.   For greater clarity, by signing below Employee acknowledges and agrees that upon receipt of the entitlements prescribed herein, no further notice or payments in lieu of notice will be owing to Employee by the Company or OraSure as a result of the termination of Employee’s employment, whether under statute or at common law.

7.Indemnification.  The Company agrees that if Employee is made a party (or is threatened to be made a party to) any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (a “Proceeding”), by reason of her service (including past service) as an officer, director, employee, agent, or the like of the Company, or is or was serving at the request of the Company as an officer, director, employee, agent, or the like of another entity, including, without limitation, as a fiduciary of an employee benefit plan sponsored or established by the Company (any such service for a subsidiary, affiliate, joint venture or other entity in which the Company has an ownership or other financial interest, or as a fiduciary of any employee benefit plan sponsored by the Company or any such other entity, shall be presumed to be at the request of the Company), whether or not the basis of such Proceeding is an act or omission alleged to have occurred while Employee was acting in an official capacity as a director, officer, employee, agent, or the like, then Employee shall be indemnified and held harmless by the Company to the fullest extent authorized by applicable law (including for all reasonable attorneys’ fees and costs incurred by Employee), and such indemnification shall continue even if Employee has ceased to be a director, officer, employee, agent, or the like of the Company for any reason.

8.Insurance.  During the Term and for a period of six (6) years thereafter (regardless of the reason for the termination of Employee’s employment), the Company shall maintain suitable directors and officers insurance coverage for Employee in her respective roles and shall name Employee as an additional insured under such insurance policies, which policies shall be no less favorable to Employee than such insurance policies that cover OraSure’s directors during such time period.

9.Restrictive Covenants

 

9.1 Employee acknowledges that, in the course of employment with the Company and given the duties and responsibilities of Employee with the Company, Employee has had or will maintain close working relationships with the customers, clients, suppliers, distributors, consultants, agents and employees of the Company.  Due to the sensitive nature of the Employee’s positions and the special access that the Employee has had or will have to both the Company’s confidential information and intellectual property, Employee acknowledges and agrees that Employee will be in a position to irreparably harm the Company should the Employee make use of the specialized knowledge, contacts and connections obtained as a result of the Employee’s employment with the Company to the detriment of the Company.  The Employee also acknowledges that the unauthorized use or disclosure of such 

 

	
	
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information could irreparably damage the interests of the Company if made available to a competitor, or if used against the Company.  

 

9.2.As such, and in consideration of the Severance payable hereunder, during the Term and for a period of one (1) year thereafter, Employee agrees that, unless she obtains written agreement from the CEO or the Board of Directors, Employee covenants to not engage in any of the following activities, either alone or in partnership or in conjunction with or as an employee of any other individual, person, firm association, trust, corporation or other entity:

(a)Employee will not recruit, solicit, or hire any executive, employee or contractor of the Company or induce or encourage an executive, employee or contractor of the Company to terminate a contractual relationship with the Company. 

(b)Employee will not solicit Business (as defined below) from any Designated Customer (as defined below) or direct or attempt to direct any Designated Customer to purchase any product or service that is competitive with the Business of the Company from any person or entity that is in competition with the Company. “Business” means any form of commercial activity that is the same or similar to commercial activity that the Company was engaged in or planning to be engaged in when this Agreement was terminated (for any reason). “Designated Customer” means any person or entity that was a customer, account, client, or partner of the Company during the last two (2) years of the Term of this Agreement or any entity that the Company was engaged in communications with during that same period of time for the purpose of forming a customer, account, client, or partner relationship with the Company. 

	

	
(c)Employee will not own, manage, control, work for, or provide services to any entity which competes with the Company in the United States or Canada.

9.3The parties agree, however, that this Section 9:  (i) shall not prevent Employee from accepting a position with and working for any other entity which competes with the Company in the Business, if such business is diversified, Employee is employed in a department, division or other unit of the business that is not engaged in the Business and Employee does not, directly or indirectly, provide any assistance, services, advice, consultation or information with respect to infectious disease testing, genomics or microbiome products and services to the department, division or unit of the business engaged in the Business; and (ii) shall not prevent Employee from purchasing or owning less than five percent (5%) of the stock or other securities of any entity, provided that such stock or other securities are traded on any national or regional securities exchange or are actively traded in the over-the-counter market and registered under Section 12(g) of the Securities Exchange Act of 1934, as amended.  

 

9.4 Employee acknowledges and agrees that the terms and conditions of these restrictive covenants are reasonable for the protection of the Business of the Company, including the protection of the goodwill, intellectual property and confidential information of the Company. Employee acknowledges that the consideration provided for in the Agreement is sufficient to fully compensate Employee for these covenants. Employee acknowledges and agrees that, in the event of a breach or threatened breach of these restrictive covenants by Employee, the Company shall be entitled to apply for injunctive relief in addition to and without prejudice to, other remedies.

 

10.Remedies.  The respective rights and duties of the Company and Employee under this Agreement are in addition to, and not in lieu of, those rights and duties afforded to and imposed upon them by law or at equity.

 

11.Severability of Provisions.  The provisions of this Agreement are severable, and if any provision hereof is held invalid or unenforceable, it shall be enforced to the maximum extent permissible, and the remaining provisions of the Agreement shall continue in full force and effect.

12.Non-Waiver.  Failure by either party at any time to require performance of any provision of this Agreement shall not limit the right of the party failing to require performance to enforce the provision.  No provision of this Agreement may be waived by either party except by a writing signed by that party.  A waiver of any breach of a provision of this Agreement shall be construed narrowly and shall not be deemed to be a waiver of any succeeding breach of that provision or a waiver of that provision itself or of any other provision.

 

	
	
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13.Non-Disparagement.  Both during and after her employment, Employee agrees not to disparage the Company or any of the stockholders, directors, officers, or employees of the Company.   The Company agrees not to disparage, and will not direct its directors, officers and employees to disparage, Employee.  Employee and the Company agree not to make any statement or engage in any conduct that might affect adversely the business or professional reputation of the other party or, in the case of OraSure or the Company, any of the stockholders, directors, officers or employees of OraSure or the Company.  Notwithstanding the foregoing, no obligation of any person or entity under this provision will be violated by truthful statements made (i) to any governmental authority, (ii) in connection with legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings) or (iii) in performance reviews.

	

	
14.Other Agreements.  Employee represents, warrants and, where applicable, covenants to the Company that:

(a)There are no restrictions, agreements or understandings whatsoever to which Employee is a party which would prevent or make unlawful Employee’s execution of this Agreement or Employee’s employment hereunder, or which is or would be inconsistent or in conflict with this Agreement or Employee’s employment hereunder, or would prevent, limit or impair in any way the performance by Employee of her obligations hereunder;

(b)Employee’s execution of this Agreement and Employee’s employment hereunder shall not constitute a breach of any contract, agreement or understanding, oral or written, to which Employee is a party or by which Employee is bound; and

(c)Employee is free to execute this Agreement and to be employed by the Company as an employee pursuant to the provisions set forth herein.

15.Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the Company and Employee and their respective successors, executors, administrators, heirs and/or permitted assigns; provided, however, that neither Employee nor the Company may make any assignments of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other party, except that, without such consent, the Company may assign this Agreement to any successor to all or substantially all the business or assets of the Company by means of liquidation, dissolution, merger, consolidation, transfer of assets, or otherwise and Employee may transfer this Agreement by will or the laws of descent and distribution.  The Company will require any successor (whether direct or indirect, by merger, consolidation, transfer of assets, or otherwise) acquiring all or substantially all of the business and/or assets of the Company (whether such assets are held directly or indirectly) to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

16.Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit Employee’s continuing or further participation in any benefit, bonus, incentive, stock-based or other plan or program provided by the Company and for which Employee may qualify.  Except as otherwise provided herein, amounts and benefits which are vested benefits or which Employee is otherwise entitled to receive at or subsequent to the date of termination shall be payable in accordance with such plan or program.

17.Entire Agreement; Amendments.  This Agreement and the Confidentiality Agreement contain the entire agreement and understanding of the parties hereto relating to the subject matter hereof and thereof, and supersede all prior and contemporaneous discussions, agreements and understandings of every nature relating to the employment of Employee by the Company.  This Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.

18.Consent to Suit.  Any legal proceeding arising out of or relating to this Agreement shall be instituted in the Ontario Superior of Justice in Ottawa, Ontario, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in which the Company maintains its principal place of 

 

	
	
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business, and Employee and the Company hereby consent to the personal and exclusive jurisdiction of such court and hereby waive any objection that Employee or the Company may have to personal jurisdiction, venue, and any claim or defense of inconvenient forum.  

19.Cooperation.  Employee further agrees that during and after her employment with the Company, subject to reimbursement of her reasonable expenses, she will cooperate fully with the Company and its counsel with respect to any matter (including, without limitation, litigation, investigations, or governmental proceedings) in which the Employee was in any way involved during her employment with the Company.  Employee shall render such cooperation in a timely manner on reasonable notice from the Company, so long as the Company, following Employee’s termination of employment, exercises commercially reasonable efforts to schedule and limit its need for Employee’s cooperation under this paragraph so as not to interfere with Employee’s other personal and professional commitments

 

20.Counterparts and Facsimiles.  This Agreement may be executed, including execution by facsimile signature, in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.

 

21.Governing Law.  Unless otherwise specified, this Agreement shall be governed by, and enforced in accordance with, the laws of the Province of Ontario without regard to the application of the principles of conflicts of laws.

The parties have executed this Employment Agreement as of the date stated above.

 

DNA GENOTEK, INC.

 

 

By:  /s/ Stephen S. Tang

        Stephen S. Tang

 

Title:  Chief Executive Officer

 

 

 

 

 

 

ORASURE TECHNOLOGIES, INC.

 

 

/s/ Kathleen G. WeberBy:  /s/ Stephen S. Tang

Kathleen G. Weber        Stephen S. Tang.

 

Title:  President and Chief Executive Officer

 

 

	
	
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EXHIBIT A

Specific Duties of Employee as 

Executive Vice President, Business Unit Leader, Molecular Solutions

 

Employee, as the Executive Vice President, Business Unit Leader, Molecular Solutions of DNA Genotek shall have duties commonly performed by the head executive in charge of a company’s business and operations, including (i) oversight of the commercial, operational and financial performance of DNA Genotek; (ii) development and implementation of financial and business plans; (iii) development of short and long term business strategies for DNA Genotek and (iv) assistance to the Chief Executive Officer of OraSure in developing strategic business plans and in planning and evaluating mergers, acquisitions and other strategic matters.

 

  

 

 

EXHIBIT B 

U.S. RELEASE AGREEMENT

THIS RELEASE AGREEMENT (the “U.S. Release Agreement”) is entered into on this __ day of ___________, 20__, by and between Kathleen G. Weber (“Executive”) and OraSure Technologies, Inc., a Delaware corporation, together with each and every of its predecessors, successors (by merger or otherwise), parents, subsidiaries, affiliates, divisions and related entities, directors, officers, Executives, attorneys and agents, whether present or former (collectively “OraSure”);

WHEREAS, Executive is entitled to receive severance under an Employment Agreement (“Employment Agreement”), dated ___________, 2018 between Employee, DNA Genotek, Inc. and OraSure;

AND WHEREAS, Executive agrees to execute this U.S. Release Agreement as consideration for such severance; and

AND WHEREAS, capitalized terms not otherwise defined in this U.S. Release Agreement shall have the meanings set forth in the Employment Agreement.

NOW, THEREFORE, the parties agree as follows, in consideration of the mutual covenants and obligations contained herein, and intending to be legally held bound:

1.Employment Termination; Consideration.  Executive’s employment with OraSure shall terminate on ______________ (the “Termination Date”).  In consideration for Executive’s receipt of severance as provided in the foregoing Employment Agreement, Executive is willing to enter into this U.S. Release Agreement and provide the release set forth herein.

2.Executive’s Release.  Executive hereby generally releases and discharges OraSure, together with each and every of its predecessors, successors (by merger or otherwise), parents, subsidiaries, affiliates, divisions and related entities, and their respective directors, officers, executives, attorneys and agents, and benefit plans (and the administrators, fiduciaries and agents of such plans), whether present or former (collectively the “Releasees”), from any and all suits, causes of action, complaints, obligations, demands, or claims of any kind, whether in law or in equity, direct or indirect, known or unknown, suspected or unsuspected (hereinafter “claims”), which the Executive ever had or now has arising out of or relating to any matter, thing or event occurring up to and including the date of this U.S. Release Agreement.  Except as otherwise expressly provided in this U.S. Release Agreement, Executive’s release specifically includes, but is not limited to:

a.any and all claims for wages and benefits including, without limitation, salary, stock, options, commissions, royalties, license fees, health and welfare benefits, separation pay, vacation pay, incentives, and bonuses;

b.any and all claims for wrongful discharge, breach of contract (whether express or implied), or for breach of the implied covenant of good faith and fair dealing;

c.any and all claims for alleged employment discrimination on the basis of age, race, color, religion, sex, national origin, veteran status, disability and/or handicap and any and all other claims in violation of any federal, state or local statute, ordinance, judicial precedent or executive order, including but not limited to claims under the following statutes: Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et seq., the Civil Rights Act of 1866, 42 U.S.C. §1981, the Age Discrimination in Employment Act,  29 U.S.C. §621 et seq., the Older Workers Benefit Protection Act, 29 U.S.C. §626(f) (together with the Age Discrimination in Employment Act, the “ADEA”), the Americans with Disabilities Act, 42 U.S.C. §12101 et seq., the Family and Medical Leave Act of 1993, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, or any comparable statute of any other state, country, or locality except as required by law, but excluding claims for vested benefits under OraSure’s pension plans;

  

 

 

d.any and all claims under any foreign, federal, state or local statute or law;

e.any and all claims in tort (including but not limited to any claims for misrepresentation, defamation, interference with contract or prospective economic advantage, intentional or negligent infliction of emotional distress, duress, loss of consortium, invasion of privacy and negligence);

f.any and all claims for attorneys’ fees and costs; and

g.any and all other claims for damages of any kind.

It is the intention of Executive and OraSure that the language relating to the description of released claims in this paragraph shall be accorded the broadest possible interpretation.  Notwithstanding the foregoing, nothing contained in this paragraph shall apply to, or shall release OraSure from, (i) any obligation of OraSure under this U.S. Release Agreement or the Employment Agreement; (ii) any accrued or vested benefit of Executive pursuant to any employee benefit plan of OraSure, including any benefit not yet due and payable; (iii) any obligation of OraSure under existing stock options, restricted stock or other stock awards; or (iv) any right to indemnification under the U.S. Release Agreement, the By-Laws or Certificate of Incorporation of OraSure or any subsidiary or any insurance policy maintained by the Company or any subsidiary or other entity.  Further, Executive does not waive any rights or claims under the ADEA or otherwise that may arise after the date of Executive’s execution of this U.S. Release Agreement.

3.Acknowledgment.  Executive understands that her release in Paragraph 2 extends to all of the aforementioned claims and potential claims which arose on or before the date of this U.S. Release Agreement, whether now known or unknown, suspected or unsuspected, and that this constitutes an essential term of this U.S. Release Agreement.  Executive further understands and acknowledges the significance and consequence of this U.S. Release Agreement and of each specific release and waiver, and expressly consents that this U.S. Release Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands, obligations, and causes of action, if any, as well as those relating to any other claims, demands, obligations or causes of action herein above-specified.  

4.Remedies.  All remedies at law or in equity shall be available to OraSure for the enforcement of this U.S. Release Agreement.  This U.S. Release Agreement may be pleaded as a full bar to the enforcement of any claim that Executive may assert against OraSure in violation of this U.S. Release Agreement.

5.No Admissions.  Neither the execution of this U.S. Release Agreement by OraSure, nor the terms hereof, constitute an admission by OraSure of liability to Executive. 

6.Promise Not To Sue.

a.Executive agrees and covenants not to file, initiate, or join any lawsuit (individually, with others, or as part of a class), in any forum, pleading, raising, or asserting any claim(s) barred or released by this U.S. Release Agreement.  If Executive does so, and the action is found to be barred in whole or in part by this U.S. Release Agreement, Executive agrees to pay the attorneys’ fees and costs, or the proportions thereof, incurred by the applicable Releasees in defending against those claims that are found to be barred by this U.S. Release Agreement.  While this U.S. Release Agreement will serve to release any ADEA claims, the attorneys’ fees/cost shifting provision set forth in this paragraph will not apply to any claims challenging the validity of the release contained in this U.S. Release Agreement under the ADEA.

b.Notwithstanding any of the foregoing to the contrary, nothing in this U.S. Release Agreement or otherwise shall prohibit Executive from (a) reporting possible violations of federal law or regulation to any governmental agency or entity or self-regulatory organization (including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress and any agency Inspector General), or making other disclosures that are protected under the whistleblower provisions of federal law or regulations (it being understood that Executive does not need the prior authorization of OraSure to make any such reports or disclosures or to notify OraSure that Executive has made such reports or disclosures), or (b) providing truthful testimony or statements to the extent, but only to the extent, required by applicable law, rule, regulation, legal process or by any court, arbitrator, mediator or administrative, regulatory, judicial or legislative body (including any committee thereof) with apparent 

 

	
	
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jurisdiction (provided, however, that in such event, except as set forth in the foregoing clause (a) above, Executive will give OraSure prompt written notice thereof prior to such disclosure so that OraSure may seek appropriate protection for such information). However, Executive acknowledges and agrees that Executive shall not seek or accept and waives any rights to any relief obtained on Executive’s behalf in any proceeding by any government agency (including the Equal Employment Opportunity Commission), private party, class, or otherwise with respect to any claims covered by the release in Paragraph 2 of this U.S. Release Agreement.

7.Confidentiality.  To the extent not otherwise made public by OraSure and except as permitted by Paragraph 6(b) of this U.S. Release Agreement, Executive shall not disclose or publicize the terms or fact of this U.S. Release Agreement, directly or indirectly, to any person or entity, except to Executive’s attorney and spouse, provided that Executive’s attorney and spouse agree to keep the information confidential, and to others as required by law.  Executive is specifically prohibited from disclosing the facts or terms of this U.S. Release Agreement to any former or present executive of OraSure except as required by law. Executive further agrees that in the event Executive receives a subpoena, order, or other legal process seeking disclosure of the information referred to in this U.S. Release Agreement, within five (5) business days of such receipt then Executive shall immediately notify OraSure’s General Counsel of such subpoena, request or order and cooperate with OraSure in any efforts to oppose such disclosure.

8.Non-Disparagement.  Executive agrees not to disparage or encourage others to disparage OraSure, as well as any of the other Releasees, their products, missions or businesses or any of the Releasees’ officers, directors, attorneys, and employees, and Executive agrees not to initiate any contact with or respond to any inquiry by the press or other media regarding the Releasees.  For the purpose of this U.S. Release Agreement, "disparage" includes, without limitation, comments or statements to any person or entity, including but not limited to the press and/or media, employees, contractors, or advisors of OraSure or any entity with which OraSure has a business relationship, which would adversely affect in any manner (a) the conduct of the business of OraSure or any of the Releasees (including but not limited to any business plans or prospects) or (b) the reputation of OraSure, OraSure's officers, directors or any of the Releasees. For the avoidance of doubt, nothing in this U.S. Release Agreement precludes Executive from supplying truthful information to any governmental authority or in response to any lawful subpoena or other legal process.

9.Entire Agreement.  This U.S. Release Agreement, together with the terms of the Employment Agreement, the Confidentiality Agreement and the Canadian Release Agreement, contain the entire agreement of the parties with respect to the subject matter hereof, supersede any prior agreements or understandings with respect to the subject matter hereof, and shall be binding upon their respective heirs, executors, administrators, successors and assigns.  The Executive agrees that the obligations contained in this U.S. Release Agreement and the other agreements referenced herein are in addition to, and not in lieu of, any obligations Executive may have.

10.Severability.  If any term or provision of this U.S. Release Agreement shall be held to be invalid or unenforceable for any reason, the validity or enforceability of the remaining terms or provisions shall not be affected, and such term or provision shall be deemed modified to the extent necessary to make it enforceable.

11.Advice of Counsel; Revocation Period.  Executive is hereby advised to seek the advice of counsel.  Executive acknowledges that she is acting of her own free will, that she has been afforded a reasonable time to read and review the terms of this U.S. Release Agreement, and that Executive is voluntarily entering into this U.S. Release Agreement with full knowledge and understanding of its provisions and effects. Executive understands and agrees that she is waiving rights or claims, including, but not limited to, possible claims under the ADEA, in exchange for consideration in addition to anything of value to which Executive is already entitled.  Executive agrees that this U.S. Release Agreement shall not be deemed void or avoidable by claims of duress, deception, mistake of fact, or otherwise.  Nor shall the principle of construction whereby all ambiguities are to be construed against the drafter be employed in the interpretation of this U.S. Release Agreement.  There is absolutely no agreement or reservation that is not clearly expressed in this U.S. Release Agreement.  This U.S. Release Agreement should not be construed for or against any party. Executive further acknowledges that she has been given at least twenty-one (21) days within which to consider this U.S. Release Agreement and that if Executive decides to execute this U.S. Release Agreement before the twenty-one day period has expired, Executive does so voluntarily and waives the opportunity to use the full review period. Executive acknowledges and agrees that changes made to this U.S. Release Agreement, whether or not material, do not restart the aforementioned twenty-one day period.  Executive also acknowledges that she has seven 

 

	
	
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(7) days following her execution of this U.S. Release Agreement to revoke acceptance of this U.S. Release Agreement, with the U.S. Release Agreement not becoming effective until the revocation period has expired without Executive having revoked.  Executive acknowledges that to be effective any revocation must be in writing, signed by the Executive, and received by OraSure prior to the expiration of the revocation date.  If Executive chooses to revoke her acceptance of this U.S. Release Agreement, she should provide written notice to:

General Counsel

OraSure Technologies, Inc.

220 East First Street

Bethlehem, Pennsylvania 18015

 

12.Amendments.  Neither this U.S. Release Agreement nor any term hereof may be orally changed, waived, discharged, or terminated, and may be amended only by a written agreement between the parties hereto.

13.Governing Law.  This U.S. Release Agreement shall be governed by the laws of the Commonwealth of Pennsylvania, without regard to the conflict of law principles of any jurisdiction.

14.Legally Binding.  The terms of this U.S. Release Agreement contained herein are contractual, and not a mere recital.

IN WITNESS WHEREOF, the parties, acknowledging that they are acting of their own free will, have caused the execution of this U.S. Release Agreement as of this day and year written below.

 

OraSure Technologies, Inc.

By:____________________________________                                                                             

Name:  ____________________________________ 

Title:____________________________________

Dated:____________________________________

 

__________________________________________

Kathleen G. Weber

Dated:____________________________________

 

	
	
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EXHIBIT B

CANADIAN RELEASE AGREEMENT

 

 

	
 
	
1.
	
RELEASE

In consideration of the Severance payments to me by DNA Genotek Inc. (the “DNA Genotek”) as detailed and defined in the attached Employment Agreement, the sufficiency of which consideration is hereby acknowledged, I, Kathleen G. Weber, for myself, my heirs, dependents, executors, administrators, and assigns hereby wholly and forever release, remise and discharge DNA Genotek, its predecessors, subsidiaries and affiliates, and all its officers, directors, shareholders, agents and employees (hereinafter collectively referred to as the “Releasees”), jointly and severally, from any and all actions, causes of action, contracts (whether expressed or implied), claims and demands for damages, loss, or injury, suits, debts, sums of money, indemnity, expenses, interest, costs and claims of any and every kind and nature whatsoever, at law or in equity, I ever had, now have, or may hereafter have, by reason of or arising out of any employment with the Releasees, or the cessation thereof.  Without limiting the generality of the foregoing, I hereby acknowledge that the said consideration is in satisfaction of all claims for damages, including all non-salary benefits ordinarily provided to me or on my behalf in respect of my employment, wages, salary, termination pay, severance pay, vacation pay, commissions, bonuses, expenses, allowances, incentive payments, insurance and other benefits howsoever arising out of my employment with the Releasees, and the cessation of that employment, whether available pursuant to contract, common law, or any statute including, but not limited to the Employment Standards Act, 2000  and the Human Rights Code, and including any claim(s) for reinstatement or other forms of statutory relief.

 

 

	
 
	
2.
	
NO ADMISSION

I acknowledge and agree that the payments and other consideration referred to herein do not constitute any admission or recognition of liability by or on behalf of the Releasees.

 

 

	
 
	
3.
	
INDEMNITY 

I further agree that for the aforesaid payment, I will indemnify and save harmless the Releasees from and against any and all claims, demands, taxes or penalties which may be made by the Canada Revenue Agency or related entities requiring the Releasees to pay income tax under the Income Tax Act in respect of income tax payable by myself in excess of the income tax previously withheld, as well as in respect of any and all claims, charges, taxes, or penalties and demands which may be made on behalf of the Canada Revenue Agency or any other government department under the Income Tax Act, the Employment Insurance Act or the Canada Pension Plan and/or any regulation or authority under said legislation, with respect to any amount which may in the future be found to be payable by the Releasees in respect of myself.

 

 

	
 
	
4.
	
EMPLOYMENT STANDARDS 

I acknowledge receipt of all wages, commission, incentives, overtime pay, vacation pay, holiday pay, termination pay and severance pay to which I am entitled by virtue of the Employment Standards Act, 2000 and confirm that there are no such amounts due and owing to myself by the Releasees, either pursuant to the Employment Standards Act, 2000 or pursuant to the terms and conditions of my employment and/or common law.

 

 

	
 
	
5.
	
FURTHER CLAIMS 

I agree not to make a claim or take any proceedings against any other person or corporation which might claim contribution or indemnity under the provisions of any statute or otherwise against the Releasees with respect to any matter which arose or may have arisen up to the present time, in connection with the matters covered by this Canadian Release Agreement.

 

	
	
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6.
	
GOVERNING LAW

This Canadian Release Agreement shall be governed by the laws of the Province of Ontario, without regard to the conflict of law principles of any jurisdiction.

 

	
 
	
7.
	
UNDERSTANDING  

 

I HEREBY DECLARE that I have had the opportunity to seek independent legal advice with respect to the matters addressed herein and in the Employment Agreement. I acknowledge that the terms of this Canadian Release Agreement and the Employment Agreement are fully understood by me, and that I voluntarily accept the terms herein. 

 

 

DATED at Ottawa, Ontario this _______ day of ______________, 20   .

 

 

______________________________________________________________
WitnessKATHLEEN G. WEBER

 

	
	
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