Document:

Exhibit 10.19 (S-1)

Exhibit 10.19

THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IN THE ABSENCE  OF  A  CURRENT AND EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES, OR AN OPINION SATISFACTORY TO  THE ISSUER AND ITS  COUNSEL TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS.

AUTOGENOMICS,  INC.

8 1⁄2% SUBORDINATED NOTE
201304-001                                                Vista, California
$635,725.00                                            April 1, 2013

FOR VALUE RECEIVED, AutoGenomics, Inc., a Delaware corporation (the "Company"), hereby promises to pay to the order of Memorial Care Innovation Fund , LP or registered assigns("Holder"), the principal amount of $635,725.00, 1 together with interest thereon at the rate of Eight and One-Half percent (8 1⁄2 %) per annum based on a 365-day year and the number of days elapsed, on or before March 31, 2014 (the "Maturity Date"), subject to the terms and conditions set forth below.  This 81⁄2% Subordinated Note (this "Subordinated Note") has been issued in exchange for an outstanding subordinated note of the Company (an "Old Note" identified as 201011-003) dated November  1, 2010 with an original maturity date of December 31, 2012, extended to March 31, 2013.

1.    Defined Terms.

"Affiliate" means, with regard to any Person, (i) any Person, directly or indirectly, controlled by, under common control with, or controlling such Person, (ii) any Person, directly or indirectly, in which such Person holds, of record or beneficially , five percent (5.0%) or more of the equity or voting securities, (iii) any Person that holds, of record or beneficially, five percent (5.0%) or more of the equity or voting securities of such Person, (iv) any Person that, through contract, relationship or otherwise, exerts a substantial influence on the management of such Person's affairs, (v) any director, officer, partner or individual holding a similar position in respect of such Person, or (vi) as to any natural Person, any Person related by blood , marriage or adoption and any Person owned by such Persons.

"Appropriate Reserves" means reserves for operating expenses and scheduled or required payments on Indebtedness (including payments for past-due rent constituting Existing Senior Indebtedness) for the immediately following fiscal quarter determined in good faith by the Company based on the applicable annual budget for the Company

________________________
1 Principal amount of New Note will equal the principal amount of, and accrued and unpaid 

interest on, an exchanged Old Note.

(commencing with the annual budget for 2013) and in any event not to exceed , without the consent of the holders of at least a majority in principal amount of the Subordinated Notes, the annual budget for such items by more than ten percent in the aggregate in any fiscal quarter or more than twenty percent in the aggregate in any fiscal year.

"Business Day" means any day other than a Saturday, Sunday or federal holiday. 

"Collateral" means (i) the Company 's accounts receivable,  including proceeds thereof, and (ii) any other assets of the Company or any Subsidiary with respect to which the Company or any Subsidiary at any time grants a Lien to secure any Secured Indebtedness.

"Company Party" means Company and any Subsidiary of Company. 

"Distributable Cash" means, as at the end of any fiscal quarter of the
Company, available cash of the Company and its Subsidiaries after (i) payment or accrual of
operating expenses (including tax liabilities) and all scheduled or required payments on Senior Indebtedness (including payments of past-due rent included in Existing Senior Indebtedness) for that fiscal quarter just ending and (ii) establishing Appropriate Reserves for the immediately following fiscal quarter.

"Existing Indebtedness" means the Existing Senior Indebtedness, the Old Notes, the Subordinated Notes, and other obligations of the Company incurred prior to the Exchange Offer Commencement Date and outstanding on the Original Issue Date.

"Existing Senior Indebtedness" means, collectively, (i) the Senior Debt, of which $2,750,000 plus accrued and unpaid interest is outstanding as of the Issue Date and (ii) past-due rent in an amount equal to $1,040,595 on the Issue Date payable to PCCP DJ ORTHO, LLC, a Delaware limited liability company ("Landlord ") under the Standard Industrial/Commercial Single-Tenant Lease --Net dated February 12, 2009, by and between the Company and Landlord, as amended from time to time.

"Indebtedness" means:

(i)all indebtedness of the Company or any Subsidiary for monies borrowed from banks, trust companies, insurance companies and other financial institutions, including commercial paper, letters of credit and accounts receivable sold or assigned by the Company or any Subsidiary to such institutions;

(ii)all indebtedness of the Company or any Subsidiary for monies borrowed by the Company or any Subsidiary from other persons or entities (excluding accrued expenses, trade payables, workers' compensation claims, self-insurance obligations, bankers ' acceptances, performance, hedging obligations and surety bonds in the ordinary course of business) ;

(iii)any due or past-due obligations of the Company as lessee under leases of real or personal property ;

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(iv)indebtedness or obligations of others of the kinds described above assumed or guaranteed in any manner by the Company or any Subsidiary;

(v)deferrals, renewals, extensions and refund ings of any such indebtedness or obligations described above;

(vi)any balance deferred and unpaid of the purchase price of any property or services due more than six months after such property is acquired by, or such services are completed for, the Company or any Subsidiary; and

(vii)any other indebtedness of the Company or any Subsidiary which the Company and the holders of more than 50% of the unpaid principal amount of the Subordinated Notes then outstanding may hereafter from time to time expressly and specifically agree in writing shall constitute Indebtedness;

if and to the extent any of the preceding items (other than letters of credit and hedging obligations) would appear as a liability upon a balance sheet of the Company or any Subsidiary prepared in accordance with generally accepted accounting principles, whether or not contingent.  In addition, the term "Indebtedness" includes all Indebtedness of others secured by a Lien on any asset of the Company or any Subsidiary (whether or not such Indebtedness is assumed by the Company or any Subsidiary).

"Intercreditor Agreement" means any Intercreditor Agreement among the Subordinated Notes Representative and holders of the Company 's Secured Indebtedness, and acknowledged by the Company, as amended, modified , supplemented or amended and restated from time to time.

"Lien" means with respect to any assets, any mortgage, lien, pledge, charge, security interest or other similar encumbrance (including, without limitation, any conditional sale or other title retention agreement or lease in the nature thereof, any option or other agreement to sell, and any filing of or agreement to give, any security interest).

"Note Documents" means the Subordinated Notes, the Second Lien Security Agreement, any other collateral agreement to which the Company and the Subordinated Notes Representative are a party with respect to the Subordinated Notes, and any Intercreditor Agreement.

"Old Notes" means any subordinated promissory notes of the Company outstanding as of the Exchange Offer Commencement Date that are not exchanged in the Exchange Offer and remain outstanding thereafter .

"Issue Date" means April  1, 2013.

"Pari Passu  Subordinated Notes" means the Subordinated Notes and all other Indebtedness of the Company represented by subordinated promissory notes ranking pari passu with and equal in right of payment to the Subordinated Notes (including any Old Notes).

"Person" means any corporation, partnership ,joint venture, limited liability 

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company, organization, entity, governmental authority, body or agency, or natural person.

"Requisite Holders" means the Holders of at least a majority in outstanding principal amount of the Subordinated Notes.

"Second Lien Security Agreement" means the Second Lien Security Agreement dated as of the Original Issue Date, by and between the Company and the Subordinated Notes Representative, as amended, modified , supplemented or amended and restated from time to time.

"Secured Indebtedness" means any Indebtedness secured by a Lien on any asset or property of the Company or any Subsidiary (other than Indebtedness with respect to
(i) any capitalized lease or (ii) the deferred and unpaid purchase price of any asset).

"Senior Indebtedness" means any (i) any Existing Senior Indebtedness , (ii) Indebtedness of the Company designated by the Company as ranking senior to the Subordinated Notes and (iii) any other indebtedness of the Company which the Company and the holders of more than 50% of the unpaid principal amount of the Subordinated Notes then outstanding may hereafter from time to time expressly and specifically agree in writing shall constitute Senior Indebtedness.  The Company agrees to provide to the Holder, if requested , the names of the holders of all Senior Indebtedness in writing, and to provide the Holder, if requested , with copies of all agreements related to any such Senior Indebtedness. Notwithstanding  the foregoing, "Senior Indebtedness " shall not include (x) any other Indebtedness of the Company designated as subordinated indebtedness (including any Pari Passu Subordinated Notes), or (y) any Indebtedness of the Company or any Subsidiary owed to any Affiliate of the Company or any Subsidiary.

"Subordinated Notes Representative" means initially, Citibank, N.A., acting through its Citibank Agency & Trust division, as collateral agent for the holders of the Subordinated Notes, and any successor or sub-agent appointed as set forth on Annex I hereto.

"Subsidiary" means, with respect to any specified Person, any other Person, other than a natural Person, (i) of which more than 50.0% of the voting stock or other equity interests (in the case of other Persons that are not corporations) is owned or controlled, directly or indirectly , by such specified Person or one or more Affiliates of such specified Person or (ii) the management of which is controlled, directly or indirectly, by contract or otherwise, by such specified Person or one or more Affiliates of such specified Person. Unless otherwise specified herein or the context otherwise requires, "Subsidiary" shall mean a Subsidiary of the Company.

2.Subordination.

Subordination to Senior Indebtedness.  The Indebtedness evidenced by this Subordinated Note, and the payment of the principal hereof and interest hereon, is wholly subordinated , junior and subject in right of payment, to the extent and in the manner provided herein and in any Intercreditor Agreement , to the prior payment of all Senior Indebtedness permitted under this Subordinated Note.

		
	3.
	Repayment of the Subordinated Notes.

(a)Repayment at the Maturity  Date.  On the Maturity Date, the Company shall 

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repay all, but not less than all, of the then outstanding principal amount of the Subordinated Notes, and all accrued and unpaid interest thereon, by mailing a corporate check in such amount payable to the Holder at the Holder's address of record as contained herein, or on file with the Company pursuant to notice given as provided herein, no later
than ten (10) business days after the Maturity Date or, at the request of the Holder, by wire transfer of immediately available funds designated in writing by the Holder.

(b)Repayment from Proceeds of lPO.  Upon consummation of an initial public offering of the common stock of the Company, the Company shall use 50% of the net cash proceeds (net of actual transaction expenses, other than taxes) received by the Company to repay Existing Indebtedness in the order of priority set forth in Section 4(a)(l ).

(c)Optional Redemption Prior to the Maturity Date.  The Company may redeem this Subordinated Note in whole or in part, at any time or from time to time, without penalty , at a redemption price equal to l 00% of the principal amount of this Subordinated Note, together with all accrued and unpaid interest thereon through the redemption date, provided that such redemption is on a pro rata basis with all other Subordinated Notes then outstanding (determined based on the aggregate principal amount of all Subordinated Notes then outstanding as of such redemption date).

(d)Cancellation of Subordinated Note.  Immediately upon repayment in full of this Subordinated Note, including all principal, accrued interest, redemption price, as applicable, and any amounts owed pursuant to Section 1O(e) hereof, this Subordinated Note shall no longer be deemed to be outstanding and all rights with respect to this Subordinated Note shall immediately cease and terminate as of the date of such repayment.

		
	4.
	Covenants of the Company.

(a)Incurrence of Additional  Indebtedness.  The Company shall not, and shall not permit any Subsidiary to, incur any Indebtedness after the Issue Date that is not expressly subordinated in right of payment to the Subordinated Notes without the prior written consent of holders representing 75% of the aggregate principal amount of all then outstanding Subordinated Notes ;provided, however, that without the consent of any of the holders of the Subordinated Notes, the Company may incur Indebtedness as follows:

(1)any Indebtedness; provided that at least 50% of the proceeds (net of actual transaction expenses (excluding any amount for taxes)) of any such Indebtedness are used to repay and retire Existing Indebtedness in the following order of priority: first, any Existing Senior Indebtedness then outstanding until all Existing Senior Indebtedness has been paid in full; second, any Subordinated Notes and Old Notes then outstanding (on a pro rata basis based upon the principal amount of Subordinated Notes and Old Notes then outstanding) until all of the Subordinated Notes and Old Notes have been paid in full; and third, any other obligations of the Company incurred by the Company prior to the Exchange Offer Commencement Date and outstanding on the Original Issue Date;

(2)any Existing Senior Indebtedness may be refinanced, and any Indebtedness existing on the Issue Date that has already been refi nanced under Section
4(a)( l ) may be subsequently refinanced , in each case, so long as the principal amount thereof is not increased (except such refinanced Indebtedness may be increased by an amount equal to the 

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actual transaction expenses of such refinancing (excluding any amount for taxes)); and

(3)Indebtedness in an outstanding amount not to exceed in the aggregate $100,000 consisting exclusively of (i) capitalized lease obligations and (ii) the deferred and unpaid purchase price of any asset).

For avoidance of doubt, the Company may incur Indebtedness that is permitted in part under clause (l) and subject to the criteria of clause (1), to refinance Indebtedness existing on the Original Issue Date, and in part under clause (2) and subject to the criteria of clause (2), to refinance previously refinanced Indebtedness.

(b)Reports.  Until the Company becomes subject to the reporting requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, at the
request of the Holder, the Company agrees to furnish to the Holder the following financial statements and other information:

(1)as soon as available, copies of the unaudited consolidated balance sheets of the Company and its subsidiaries as of the end of the first three quarterly accounting periods during the fiscal year of the Company in which the Holder makes such request, and of the related consolidated statements of income and retained earnings and cash flows for such accounting periods;

(2)as soon as avai!able after the end of each fiscal  year of the Company, copies of the audited  consolidated  balance  sheets of the Company and its subsidiaries as of the end of such fiscal year, and of the related  audited consolidated statements of income and retained  earnings and cash flows for such fiscal year accompanied by a report thereon  from  independent  certified  public  accountants selected by the Company; provided  that the Company  shall not be required  to deliver audited financial statements if  not otherwise required  in connection  with  i ts financing agreements.

(c)Subordinated  Second Lien.  The Company shall take such actions as shall be necessary to grant and maintain for the benefit of the holders of the Subordinated Notes, a subordinated , perfected Lien on all Collateral , which Lien is second in priority solely to any Senior Indebtedness that is Secured Indebtedness and to any Liens that have priority solely by operation of law.

(d)Distributions.  No distributions (other than dividends paid solely in shares of capital stock of the Company) will be made on account of the Company's capital stock until the Subordinated Notes are paid in full.

(e)Employee Compensation.  No increase to any current C-level salary for employees of the Company shall increase any such salary (i) by a percentage that is more than the percentage increase in year-to-date revenues on the date of the increase over the prior year's revenues for the same period , or (i i) to exceed its 2008 level.

(f)Terms No More Favorable.  If any of the other subordinated indebtedness issued by the Company after the Original Issue Date (including any Pari Passu Subordinated Notes) contain terms more favorable to the holder of such subordinated indebtedness than those contained 

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in this Subordinated Note (such subordinated indebtedness, the "More Favorable Terms Note"), the Company shall promptly (but not less than 5 days after the issuance of such More Favorable Terms Note) offer to exchange for thi s Subordinated Note a new Subordinated Note which shall have the same terms as this Subordinated Note plus the more favorable terms of the More Favorable Terms Note.

5.Requirements for Transfer.  This Subordinated Note shall not be sold or transferred unless either (i) this Subordinated Note shall have been registered or qualified under the Securities Act of 1933, as amended (the "Act"), and all applicable state securities laws with respect thereto or (ii) the Company first shall have been furnished with an opinion oflegaJ counsel, reasonabl y satisfactory to the Company, to the effect that such sale or transfer is exempt from the registration or qualification requirements of the Act and aJI applicable state securities laws with respect thereto.

6.Payment of Principal.  All payments due and payable from the Company to Holder under this Subordinated Note shall be made in lawful currency of the United States of America.  In no event shall any prepayment of pri ncipal be made with respect to any other subordinated indebtedness of the Company (including any Pari Passu Subordi nated Note) unless and until the Company shall have concurrently prepaid a like proportionate amount of the principal of this Subord inated Note. All repayments and prepayments under this Subordinated Note shall be applied first to accrued and unpaid interest and then to the outstanding principal balance hereof.

		
	7.
	Default and Remedies.

(a)Default.  Upon the occurrence of an Event of Default (as defined below), the entire unpaid portion of the principal amount of this Subordinated Note, and all accrued and unpaid interest due Holder hereunder, shall automatically become due and payable.  As used in this Subordinated Note, "Event of Default" shall mean: (i) a receiver, trustee, custodian or similar officer is appointed for the Company, or for any substantial part of i ts property and such appointment or proceeding s remain unstayed or undismissed for a period of 90 days, (ii) any bankruptcy, insolvency, reorganization , arrangement, readjustment of debt, dissolution, liquidation or similar proceeding s under the laws of any jurisd iction is instituted (by petition , application or otherwise) against the Company and such appointment or proceedings remain unstayed or undismissed for a period of 90 days, (iii) the Company admits in writing its inability to pay its debts when due, (iv) the Company makes an assignment for the benefit of creditors, (v) the Company applies for or consents to the appointment of any receiver, trustee, custodian or similar officer for the Company or for any substantial part of its property , (vi) the Company institutes (by petition, application or otherwise) or consents to any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceedings under the laws of any jurisdiction against the Company, (vii) any Indebtedness of the Company in excess of $1,000,000 is accelerated prior to its scheduled maturity date, (viii) the Company fails to make any principal or interest payment under this Subordinated Note when due and, other than at scheduled maturity, such breach remains uncured for 10 days following written notice from any holder of Subordinated Notes, and (ix) the Company breaches any of its other obligations hereunder or as set forth in the Agreement and such breach remains uncured for thirty days following written notice from any holder of Subordinated Notes.

(b)    Remedies.  Notwithstanding any other provision of this Subordinated Note or any other Note Documents, the Holder shall not exercise any rights or remedies of a secured creditor 

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with respect to any Collateral unless (i) a payment default has occurred and has continued for more than 30 days after receipt by the Company of written notice thereof and (ii) such exercise is permitted by the terms of any applicable Intercreditor Agreement.

8.Replacement.  Whenever this Subordinated Note shall be surrendered at the principal executive office of the Company for transfer or exchange, accompanied by a written instrument of transfer in form reasonably satisfactory to the Company duly executed by the Holder hereof or his, her or its attorney duly authorized in writing, the Company shall execute and deliver in exchange therefor a new Note or Notes, as may be requested by the Holder, in the same aggregate unpaid principal amount and payable on the same date as the principal amount of the Note or Notes so surrendered; each such new Note shall be in such principal amount and registered in such name or names as the Holder may designate in writing.  Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Subordinated Note and of indemnity reasonably satisfactory to it, and upon reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of this Subordinated Note (in case of mutilation) the Company will make and deliver in lieu of this Subordinated Note a new Subordinated Note of like tenor and unpaid principal amount.

9.The Subordinated Notes Representative.  By his, her or its acceptance of this Subordinated Note, the Holder, by acceptance of his, her or its Subordinated Note, agrees to the appointment of the Subordinated Notes Representative, on the terms and conditions set forth on Annex 1 hereto.  By its signature below, the Company agrees to the appointment of the Subordinated Notes Representative , on the terms and conditions set forth on Annex I hereto.

		
	10.
	General.

(a)Successors and Assigns.  This Subordinated Note, and the obligations and rights of the Company hereunder, shall be binding upon and inure to the benefit of the Company, the Holder of this Subordinated Note, and their respective heirs, successors and assigns.

(b)Notices. All notices, requests, consents and demands shall be made in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid , or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at 2980 Scott Street, Vista, CA 92801, Attention: Chief Financial Officer, and to the Holder at the address set forth on the Holder 's letter of transmittal delivered in the Exchange Offer, or at
such other address as the Company or the Holder may designate by ten ( I 0) days advance written notice to the other parties hereto.

(c)Governing_Law.  This Subordinated Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of New York, without regard to its principles of choice of Jaw.

(d)Waiver and Amendment.  No delay or omission on the part of the Holder in exercising any right under this Subordinated Note shall operate as a waiver of such right or of any 

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other right of such Holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future occasion.  The Company hereby waives presentment , notice of dishonor, protest and notice of protest with respect to this Subordinated Note.

This Subordinated Note may only be amended or modified by a written agreement signed by the Company and Holder.  Annex I hereto may only be amended or modified by a written agreement signed by the Subordinated Notes Agent, the Company and Holder.

(e)Costs of Collection.  The Company agrees to pay on demand all costs of collection, including reasonable attorney's fees, incurred by the Holder in enforcing the obligations of the Company under this Subordinated Note.

(f)Confidentiality. By the Holder's acceptance hereof , the Holder, by acceptance of his, her or its Subordinated Note, agrees to keep confidential and not disclose, divulge or use for any unauthorized purpose any confidential, proprietary or secret information which the Holder may obtain from the Company and which is marked by the Company as confidential (i) pursuant to financial statements, reports and other materials submitted by the Company to the Holder, or (ii) pursuant to visitation or inspection rights (if any) granted to the Holder, in each case, unless such information is known, or until such information becomes known, to the public, or the Holder is required by any governmental agency, court or other regulatory body having jurisdiction over the Holder to disclose such information, but only for the sole purpose of and solely to the extent requi red by such agency, court or other regulatory body, provided that the Holder, to the extent possible, shall give the Company prior written notice of the proposed disclosure and cooperate fully with the Company to minimi ze the scope of any such required disclosure, to the extent possible and in accordance with applicable law.

(g)Headings. The headings in this Subordinated Note are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Subordinated Note.

(Signature Page Follows)

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IN WITNESS WHEREOF, this Subordinated Note has been executed and delivered on the date first above written by the undersigned authorized representative of the Company.

AUTOGENOMICS , INC.
	
		
	By:
	

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September 25, 2014

MemorialCare Innovation Fund, LP
320 Golden Shore Ave., Suite 120
Long Beach, CA 90802
Attention:  Brant Heise, Managing Director

Dear Mr. Heise:

Reference is hereby made to that certain promissory note dated December 8, 2009 in the original principal amount of $500,000 and assigned serial number 201304-001 on April 1, 2013 (as amended, the “Note”), issued by AutoGenomics, Inc. (the “Company”) to MemorialCare Innovation Fund, LP (“MCI”).  As of the date of this letter, the principal and interest is $716,114.00 Capitalized terms used but not defined herein have the meanings given to them in the Note.

As you know, the Note has matured and payment by the Company thereunder is now due and owing.  By execution and delivery of this letter agreement, and in exchange for and in consideration of the Company paying to MCI $10,000.00 immediately following the date hereof by wire transfer of immediately available funds or corporate check (with such payment to be credited to outstanding accrued and unpaid interest on the Note), MCI hereby waives the Company’s payment default and agrees to forbear and restrain from filing any legal action or instituting or enforcing any rights and remedies it may have against the Company from the date hereof until December 31, 2014, at which point the full principal and interest of the Note will be due and payable.  Further, if the Company completes and closes an initial public offering of its common stock prior to that date, the Company will repay your note and any and all accrued and unpaid interest within five (5) days of the closing of the initial public offering.  If the Company does not timely comply with these terms, MCI shall have no further obligations under this letter agreement and shall be permitted to exercise at such time any rights and remedies against the Company under the Note as MCI deems appropriate.  

In addition, following your execution and delivery of this letter agreement and for the balance of the calendar year, the Company will make monthly payments to MCI in the amount of $10,000.00 per month in partial satisfaction of outstanding principal amount of, and accrued and unpaid interest on, the Note. 

This letter agreement shall be a part of, and the terms and conditions herein shall be in addition to and supplemental to all terms and conditions set forth in, the Note.  This letter agreement may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  This letter agreement and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.

Please countersign this letter agreement below to indicate your acceptance of the above, and return it to my attention.  Please feel free to contact me with any questions.

Sincerely, 

/s/ John R. Zacamy____
John R. Zacamy
Chief Financial Officer

AutoGenomics, Inc.
2980 Scott Street • Vista, CA 92081
Tel: 760.477.2248 • Fax: 760.477.2252
www.autogenomics.com

ACCEPTED AND AGREED:

MemorialCare Innovation Fund, LP

By:      /s/ Brant Heise                 
    Brant Heise, Managing Director

AutoGenomics, Inc.
2980 Scott Street • Vista, CA 92081
Tel: 760.477.2248 • Fax: 760.477.2252
www.autogenomics.com*Exhibit  10.25

Exhibit 10.20
EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of this 3rd day of January, 2013 (the “Effective Date”), by and between AutoGenomics, Inc., a California corporation (“Employer”), and Fareed Kureshy, an individual (“Employee”).
R E C I T A L S
A. Employee is currently the President, Chief Executive Officer and Chairman of the Board of Employer.
B. The Employer desires to enter into this Agreement to govern the continued employment of Employee, and Employee desires to continue to be employed by the Employer, each on the terms and conditions set forth herein.
A G R E E M E N T
In consideration of the foregoing recitals and of the mutual covenants and conditions contained herein, the parties, intending to be legally bound, agree as follows:
1. Term.
This Agreement shall have an initial term (the “Initial Term”) beginning on the Effective Date and continuing for a period of three (3) years thereafter unless earlier terminated in accordance with the provisions hereof. At the end of the Initial Term and at the end of each one year period’s Annual Performance Review thereafter (a “Renewal Period”), this Agreement can be renewed for a one year period by mutual consent of the Parties. Non-renewal of this Agreement shall not constitute termination of Employee’s employment with Employer, which may be effected during the Term only in accordance with the provisions of Section 5 below. As used in this Agreement, “Term” means the Initial Term and all Renewal Periods, if any. If the parties do not renew this Agreement but Employee continues to be employed by Employer, he will do so as an at-will employee, and not pursuant to the terms of this Agreement except that Employee’s post-termination obligations pursuant to Sections 7 and 8 of this Agreement shall survive the non-renewal/termination of this Agreement and/or the termination of Employee’s employment, however caused.
2. Employment of Employee.
(a) Specific Positions. Subject to the provisions of this Agreement, Employer will employ Employee and Employee will serve Employer as President, Chief Executive Officer, and Chairman of the Board of Employer. Employee shall perform such usual and customary duties of such offices as are set forth in the Bylaws of Employer or that may be delegated to Employee from time to time by the Board of Directors of Employer (the “Board”), subject always to the policies as reasonably determined from time to time by the Board. Such responsibilities will include among other duties preparation of annual strategic, financial and operating plans, and the holding of Employer’s annual stockholder meeting.

(b) Promotion of Employer’s Business. Subject to Section 2(c) below, Employee shall devote his full business time, attention, knowledge, skill and energy to the business, affairs and interests of Employer and matters related thereto, and shall use his best efforts and abilities to promote Employer’s interests. Employee agrees that he will at all times discharge the services contemplated hereby faithfully, industriously and to the best of his ability, experience and talents all in accordance with the policies established by the Board.
(c) Permitted Activities. During Employee’s employment by Employer under this Agreement, Employee may not serve as an officer, director, agent or employee of any other business enterprise without the express written approval of the Board; provided, however, that Employee may make and manage personal business investments of his choice and serve in any capacity with any civic, educational, charitable or personal organization, or any governmental entity or trade association, but only if such activities and services do not interfere or conflict with the performance of his duties hereunder in any material way. Nothing in this Agreement, including, without limitation, the preceding sentence shall prohibit or limit Employee in consulting with or providing other services to any other business enterprise or person so long as (i) Employee promptly informs the Board of such consulting or other services (provided that Employee need not inform the Board of any activities permitted by the preceding sentence), (ii) such services do not interfere or conflict with the performance of his duties hereunder in any material way, and (iii) such services are not provided to any business enterprise or person that is competitive with Employer with respect to its technology or the molecular market segment.

(d) Principal Office. Employee’s principal office and normal place of work shall be at Employer’s executive offices or, subject to Section 5(d) below, at such other location as designated by Employer.
3. Compensation.
(a) Salary. Until such time as Employer completes an initial public offering and uses the proceeds to retire its existing subordinated promissory notes (the “Notes”), or otherwise retires those Notes, Employer shall pay to Employee a base salary (“Base Salary”) at the rate in effect immediately prior to the Effective Date. Beginning with the first pay period following the retirement of the Notes, Employer shall pay to Employee during the Term a base salary (“Base Salary”) initially of $450,000 per year, payable in equal monthly or semi-monthly installments consistent with Employer’s payroll practices from time to time. Thereafter, beginning on the first anniversary of this Agreement and then on each anniversary thereafter, the then-current Base Salary shall increase by five percent (5%) per annum; provided, however, that the Board may authorize a greater increase based on the Board’s evaluation of Employee’s annual performance and on the financial condition of Employer and its ability to pay the base salary.
(b) Performance Bonuses. Employee shall be entitled to receive from Employer an incentive bonus in an amount determined reasonably and in good faith by the compensation committee of the Board (or, if no compensation committee has been established, by a majority of independent members of the Board). The bonus will be predicated on quantitative and qualitative goals. Quantitative goals will be based on metrics such as company revenue, net income and cash flow, while qualitative goals will be stipulated each year in Employee’s annual performance plan scorecard (the “Bonus Scorecard”). A new Bonus Scorecard will be established for each year by the compensation committee of the Board (or, if no compensation committee has been established, by a majority of independent members of the Board). Employee must be employed as of March 15 of the year following the bonus year in some combination of President, CEO and/or Chairman of the Board in order to be eligible for an incentive bonus payment for the prior year. The target amount of each such bonus will not be less than fifty 50% of Employee’s then current Base Salary (such target amount being the “Target Bonus Amount”). However, subject to Section 5 and its subsections, the actual amount of such bonus, if any, will be determined within the discretion of the compensation committee of the Board (or, if no compensation committee has been established, in the discretion of a majority of the independent members of the Board), based on the following factors: (i) the financial performance of Employer as determined and measured by the compensation committee of the Board (or, if no compensation committee has been established, by a majority of the independent members of the Board); and (ii) Employee’s achievement of the quantitative and qualitative goals set by the compensation committee of the Board (or, if no compensation committee has been established, by a majority of the independent members of the Board). The incentive bonus shall be payable to Employee by March 15 in the calendar year following the performance measurement year.
(c) Transaction Bonus. Employee shall upon any Change in Control (as such term is defined below in Section 6) earn, and Employer shall pay to Employee, a cash bonus in an amount equal to one percent (1%) of the net proceeds of the transaction(s) constituting such Change in Control, which bonus will be paid to Employee in the same form and at the same times and subject to the same conditions as proceeds of the transaction(s) are payable to Employer or its stockholders in connection with the consummation of such Change in Control; provided, however, that any payments to Employer or its stockholders remaining to be paid, if at all, after the fifth anniversary of such a Change in Control shall, no sooner than 60 and no later than 30 days prior to such fifth anniversary, be calculated by the Board at their then estimated value (as determined by the Board and taking into account all remaining conditions to payment), and the estimated aggregate amount of such remaining payments, if any, shall be paid to Employee on such fifth anniversary in full and final satisfaction of all amounts owed to Employee under this Section 3(c).
(d) Equity Grant. Within five (5) business days after the Effective Date, Employer will recommend to the Board that Employer grant to Employee a fully vested option to purchase 300,000 shares of the Company’s common stock under Employer’s 2008 Equity Incentive Plan, with terms that conform to the requirements of Sections 5(c)(iii) and 5(d)(iii) below. The option price per share will be the fair market value of a share of the Company’s common stock on the date that the Board makes the grant of such option.
4. Benefits.
(a) Vacation. Emploee shall earn vacation time during Employee’s employment by Employer under this Agreement in accordance with Employer’s vacation benefit policy set forth in its employee handbook; provided that, notwithstanding anything to the contrary in such vacation benefit policy or otherwise, (i) in no event shall Employee accrue less than three (3) weeks of vacation each calendar year, and (ii) Employee shall be entitled to accrue up to, in the aggregate, the greater of (A) sixteen weeks’ of vacation time (i.e., four years’ worth of vacation) or (B) the aggregate amount of vacation allowed to be accrued under Employer’s vacation benefit policy.

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(b) Other Fringe Benefits. During Employee’s employment by Employer under this Agreement, Employee shall be eligible for participation in and shall be covered by any and all such bonus, profit sharing, stock option and other compensation plans and such medical, disability, life and other insurance plans and such other benefits as are generally available to other employees of Employer in similar employment positions, on the same terms as such employees, subject to meeting applicable eligibility requirements under the terms of the applicable benefit plan or program as in effect from time to time.
(c) Expenses. Employee shall be entitled to receive prompt reimbursement of all reasonable expenses incurred by Employee in performing services hereunder, including, but not limited to, all expenses of travel at the request of, or in the service of, Employer, provided that such expenses are incurred and accounted for in accordance with the policies and procedures reasonably established by Employer. Employer’s obligation under this Section 4(c) to reimburse Employee for such expenses shall survive any termination of this Agreement.
5. Termination.
(a) Termination for Cause. During the Term, Employer shall have the right, exercisable immediately upon written notice, to terminate Employee’s employment for Cause (as defined below).
(i) Definition of Cause. As used herein, “Cause” means any of the following: (A) Employee materially breaches this Agreement, and Employee fails to cure such material breach within thirty (30) days after his receipt of written notice from Employer specifying such breach in reasonable detail (for the avoidance of doubt, any material breach of this Agreement by Employee, if such breach is caused by or due to any Disability, shall not constitute Cause for termination of Employee’s employment); (B) Employee is convicted by a court of competent jurisdiction of, or pleads “no contest” to, a felony; (C) Employee refuses, fails or neglects to perform consistently his duties hereunder, such refusal, failure or neglect to be determined by the Board, and Employee fails to cure such refusal, failure or neglect within thirty (30) days after his receipt of written notice from Employer specifying such refusal, failure or neglect in reasonable detail (for the avoidance of doubt, any refusal, failure or neglect by Employee to perform any duty hereunder, if such refusal, failure or neglect is caused by or due to any Disability, shall not constitute Cause for termination of Employee’s employment); (D) Employee engages in fraud, embezzlement, defalcation or other illegal or wrongful conduct substantially detrimental to the business or reputation of Employer; (E) Employee develops or pursues interests substantially adverse to Employer, and with respect to the first such development or pursuit, Employee fails to promptly abandon such development or pursuit after his receipt of written demand from Employer to abandon such development or pursuit; or (F) Employee intentionally imparts material confidential information relating to Employer or its business to competitors or to other third parties other than in the course of carrying out
Employee’s duties. Employee shall be deemed to have been terminated for “Cause” under clause (A), (C), (E) or (F) of this subparagraph (i) only if (I) the Board shall have adopted, by the affirmative vote of not less than a majority of the non-employee membership of the Board, at a meeting of the Board called and held for the purpose of determining that in the opinion of the Board Employee engaged in the conduct set forth in clause (A), (C), (E) or (F) (and, with respect to clause (A), (C) or (E), failed to timely cure or promptly abandon, as applicable, such conduct) of this Section 5(a)(i) (with respect to which meeting Employee is provided reasonable advance notice thereof and reasonable opportunity to attend with his legal counsel and present to the Board his positions and arguments regarding such alleged conduct), resolutions setting forth the Board’s opinion that such Employee conduct occurred, was not cured or abandoned (with respect to clause (A), (C) or (E)), and constitutes Cause hereunder and specifying at a minimum in reasonable detail the conduct at issue, the pertinent facts pertaining thereto and the Board’s rationale for its opinion that Cause for termination exists, and (II) after satisfaction in full of clause (I) preceding, Employer shall have provided Employee with written notice of his termination for Cause hereunder, including without limitation the effective date of such termination. With respect to any termination for Cause under clause (B) or (D) of this subparagraph (i) of this Section 5(a), Employer shall provide prior written notice of such termination to Employee specifying at a minimum in reasonable detail the conduct at issue, the pertinent facts pertaining thereto and the effective date of such termination.
(ii) Effect of Termination. Upon termination in accordance with this Section 5(a), Employee shall be entitled to no further compensation hereunder other than (A) the salary and other benefits accrued hereunder through, but not including, the effective date of such termination and (B) reimbursement of expenses pursuant to Section 4(c). Employer’s exercise of its right to terminate for Cause shall be without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
(b) Voluntary Termination. During the Term, Employee may terminate his employment at any time upon no less than five (5) business days’ prior written notice to Employer. Upon termination in accordance with this Section 5(b), Employee shall be entitled to no further compensation hereunder other than (A) the salary and other benefits accrued hereunder through, but not including, the effective date of such termination and (B) reimbursement of expenses pursuant to Section 4(c). A termination by Employee of his employment for Good Reason (as such term is defined below in Section 5(d)) shall not be deemed to be a termination in accordance with this Section 5(b).

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(c) Termination Due to Death or Disability.
(i) This Agreement shall automatically terminate upon the death of Employee. In addition, if any disability or incapacity of Employee to perform his duties as the result of any injury, sickness or physical, mental or emotional condition continues for a period of ninety (90) consecutive days in any calendar year (“Disability”), then Employer or Employee may terminate Employee’s employment due to such Disability upon written notice to the other party.
(ii) During the Term, if Employee’s employment is terminated due to death or Disability, then Employee (or Employee’s estate, in the event of Employee’s death) shall be entitled to receive: (A) all Base Salary and other benefits accrued hereunder through the date of such termination; (B) reimbursement of expenses pursuant to Section 4(c); and (C) a severance amount equal to two and one half (2 1/2) times Employee’s annual Base Salary, as in effect immediately prior to the date of such termination. The severance payment to be paid under clause (C) of this Section 5(c)(ii) shall be paid in a lump sum cash payment within five (5) days following the termination of Employee’s employment due to Disability or death, whichever is applicable.
(iii) Upon any termination under this Section 5(c), all stock options, restricted stock awards or issuances and other rights to acquire any capital stock of Employer granted or provided to Employee (if any), which are subject to vesting or any right of repurchase, will immediately vest in full and all rights to repurchase will lapse in their entirety. Employer shall ensure that any and all applicable stock option/stock issuance plans and other relevant plans and agreements that are contrary to the foregoing sentence, whether now in existence or hereinafter arising, will conform to the preceding sentence. Also, Employer shall ensure that, with respect to any stock options granted by Employer to Employee after the date hereof, such stock options shall provide that, upon any termination under this Section 5(c), Employee or his estate or other person entitled to exercise such stock option following Employee’s death, as the case may be, shall be entitled to exercise such stock option for not less than three (3) years after the date of termination (but in no event after the expiration of the original term of the stock option).
(d) Termination without Cause; Termination for Good Reason.
(i) During the Term, Employer shall have the right, exercisable upon not less than five (5) business days’ prior written notice to Employee, to terminate Employee’s employment under this Agreement for any reason at any time (provided that the parties understand and agree that any termination made in accordance with Section 5(a) or (c), above shall not be deemed a termination made under this Section 5(d)). In addition, Employee shall have the right, exercisable upon not less than five (5) business days’ prior written notice to Employer, to terminate his employment for Good Reason.
(ii) During the Term, if Employee has a Separation from Service by reason of termination from employment by Employer without Cause, or termination from employment by Employee for Good Reason, then Employee shall be entitled to receive: (A) all Base Salary and other benefits accrued hereunder through, but not including, the date of such Separation from Service; (B) reimbursement of expenses pursuant to Section 4(c); and (C) subject to Section 8(d) below, a severance benefit (the “Severance Benefit”) equal to two and one half (2 1/2) times Employee’s annual rate of Base Salary, as in effect immediately prior to the date of such Separation from Service; provided, however, that Employee shall be entitled to the Severance Benefit only if Employee executes and delivers to Employer a general release (the “Release”) of any and all claims, which Release shall be substantially in the form attached hereto as Exhibit A, within fifty (50) days after the date of such Separation from Service and Employee does not revoke the Release in accordance with the terms thereof. The Severance Benefit shall be paid in a lump sum cash payment and is subject to forfeiture in accordance with Section 8(d). Subject to the requirements of Section 409A of the Code, as applicable, such lump sum cash payment shall be paid during the five (5) day period following the expiration of the 50-day time period described immediately above.

(iii) During the Term, upon any termination of Employee’s employment by Employer without Cause or by Employee for Good Reason, all stock options, restricted stock awards or issuances and other rights to acquire any capital stock of Employer granted or provided to Employee (if any), which are subject to vesting or any right of repurchase, will immediately vest in full and all rights to repurchase will lapse in their entirety. Employer shall ensure that any and all applicable stock option/stock issuance plans and other relevant plans and agreements that are contrary to the foregoing sentence, whether now in existence or hereinafter arising, will conform to the preceding sentence. Also, Employer shall ensure that, with respect to any stock options granted by Employer to Employee after the date hereof, such stock options shall provide that, upon any termination under this Section 5(d), Employee shall be entitled to exercise such stock option for not less than three (3) years after the date of termination (but in no event after the expiration of the original term of the stock option).
(iv) As used in this Agreement, “Good Reason” means any of the following: (A) any material diminution by Employer in Employee’s duties such that Employee’s duties are no longer consistent with the position of the President and Chief Executive Officer of Employer unless Employee provides his prior written consent to such diminution; (B) any action by 

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Employer that causes Employee to no longer report directly to the Board; (C) any reduction by Employer in any material portion of Employee’s compensation (whether Base Salary, fringe benefits, participation in bonus or incentive programs, or otherwise), unless Employee provides his prior written consent to such reduction; (D) a relocation by Employer of Employee’s place of employment by more than fifty (50) miles, unless Employee provides his prior written consent to such relocation; (E) Employer’s other material breach of this Agreement (i.e., material breaches other than any breach falling within any of clauses (A) through (D) preceding); and (F) a Change in Control (as such term is defined below in Section 6); provided, that any such action or event shall constitute “Good Reason” only if (I) Employee provides Employer with written notice thereof (specifying such action or event in reasonable detail) within ninety (90) days after the later of (x) the initial occurrence thereof or (y) Employee’s actual knowledge and understanding of the initial occurrence thereof, and (II) Employer fails to cure such action or event within thirty (30) days after Employer’s receipt of such written notice (except that, with respect to a Change in Control, no such cure or cure period shall be applicable).
(e) Date of Termination. The date of the termination of Employee’s employment shall be the effective date for such termination set forth in the written notice provided under Section 5(a), (b), (c) or (d); provided that such date shall not be later than sixty (60) days after the date of such written notice; provided further that in the event of termination under Section 5(c) due to Employee’s death, the date of termination shall be the date of Employee’s death.
(f) Exclusive Remedy. Subject at all times to Employer’s compliance with its payment obligations under Section 5(c) or 5(d), as applicable, (i) the payments contemplated by Section 5(c) or 5(d), as applicable, shall constitute the exclusive and sole remedy for any termination of Employee’s employment by Employer in accordance with Section 5(c) or 5(d), as applicable; and (ii) Employee covenants not to assert or pursue any remedies, other than an
action to enforce the payments due to Employee under Section 5(c) or 5(d), as applicable, at law or in equity, with respect to any termination of employment in accordance with Section 5(c) or 5(d), as applicable.
6. Change in Control.
Employer shall take all actions necessary or appropriate to ensure that, immediately prior to any Change in Control, any and all stock options, restricted stock awards or issuances and other rights to acquire any capital stock of Employer granted or provided to Employee, which are subject to vesting or any right of repurchase, will immediately vest in full and all rights to repurchase will lapse in their entirety, and, with respect to any stock options, will become exercisable for all of shares of capital stock at the time subject to such options.
As used in this Agreement, “Change in Control” means any of the following: (a) a merger, consolidation or other reorganization of Employer unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the surviving or successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned Employer’s outstanding voting securities immediately prior to such transaction; (b) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, of all or substantially all of Employer’s assets; and (c) the acquisition, directly or indirectly, by any person or related group of persons of beneficial ownership (within the meaning of Rule 13d-3 of the U.S. Securities Exchange Act of 1934, as amended) of securities possessing more than fifty percent (50%) of the total combined voting power of Employer’s securities from any person or group of related persons; provided that, notwithstanding the foregoing clauses (a), (b) and (c), an initial public offering of all or a portion of the voting securities of Employer, or a merger transaction effected solely to change the domicile of Employer, shall not be deemed to be a Change in Control for the purposes of this Agreement.
7. Arbitration/Resolution of Disputes.
Except to the extent a party is entitled to injunctive or other equitable relief, any controversy or claim arising out of or relating to this Agreement or any agreement referred to herein shall be settled by binding arbitration before a single arbitrator in accordance with the then existing rules for commercial arbitration of the American Arbitration Association, and judgment upon any award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The single arbitrator shall be a retired or former district court or appellate court judge of a United States District Court or United States Court of Appeals, or such other person with other qualifications as the parties to such arbitration may agree. Such arbitration shall be held in San Diego County, California. Employer shall bear all costs of such arbitration, and Employer also shall bear its own attorneys’ fees and other experts’ fees and related costs and, if Employee is the prevailing party, shall reimburse Employee for his attorneys’ fees, other experts’ fees and other fees and costs incurred in connection with such arbitration. The arbitrator shall not have the authority to award punitive damages in any such arbitration proceedings. The parties agree to file any demand for arbitration within the time limit established by the applicable statute of limitations for the asserted claims. Failure to demand arbitration within the prescribed time period shall result in waiver of said claims. This agreement to arbitrate does not prohibit

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either party from filing an application for a provisional remedy to prevent actual or threatened irreparable harm in accordance with California law and further, does not cover any claims, including claims for workers’ compensation or unemployment benefits or other claims that are not subject to mandatory arbitration by law. EMPLOYEE UNDERSTANDS AND AGREES THAT HE IS WAIVING HIS RIGHTS TO BRING SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.
8. Restrictive Covenants.
Employee agrees that during the Term and for the twenty-four (24) month period commencing on the date of the termination of Employee’s employment under this Agreement, Employee shall comply with the following covenants. Employee further agrees that his satisfaction of the following covenants shall be a condition to his entitlement to the Severance Benefit under Section 5(d)(ii).
(a) Confidential Information. Employee shall execute the Confidential Information and Proprietary Rights Agreement, which is attached to this Agreement as Exhibit B. Employee’s obligations under the Confidential Information and Proprietary Rights Agreement shall continue in effect after the termination of his employment with Employer, whatever the reason or reasons for such termination, and Employee acknowledges and agrees that Employer shall have the right to communicate with any future or prospective employer of Employee concerning Employee’s continuing obligations under the Confidential Information and Proprietary Rights Agreement.
(b) Non-Solicitation of Employees. Employee shall not, directly or indirectly, through any other individual or entity, approach any employee of Employer (or of any of its subsidiaries), or initiate discussions with any such employee, for the purpose soliciting such employee to cease his or her employment with the Employer or such subsidiary, and Employee shall not knowingly authorize the taking of any such action by any other individual or entity. For the avoidance of doubt, without expanding the generality of the foregoing provisions of this Section 8(b), such foregoing provisions shall not prohibit Employee (directly or indirectly) from: (i) making any indirect general solicitation for employment (through general newspaper advertisements, industry periodical advertisements, internet postings and the like) with Employee (or with any person or entity with which he is then associated); or (ii) at any time following the Term, having discussions with any employee of Employer or any of its subsidiaries regarding the hiring by Employee (or by any person or entity with which he is then associated) of such employee, or to hire any such employee, if such employee is the person who, directly or indirectly, initiated the discussions regarding the hiring thereof by Employee or any person or entity with which he is then associated. Employee shall not be deemed in breach of this Agreement as a result of any actions taken directly or indirectly by him that fall within the purview of either of the foregoing clauses (a) and (b).
(c) Non-Disparagement and Cooperation. Employee shall not make any remarks materially disparaging the conduct or character of Employer or any of its subsidiaries or any of their current or former affiliates, agents, employees, officers, directors, shareholders, successors or assigns (such persons and entities are referred to herein as the “Protected Persons”); provided, however, that during the Term, Employer acknowledges and agrees that (i) Employee may be required from time to time to make such remarks about Protected Persons for legitimate business purposes and consistent with the discharge of Employee’s duties hereunder, (ii) Employee shall not be prohibited from making any such disparaging remark to any of his family or friends so long as such remark is not intended to materially adversely affect Employer, and (iii) nothing shall restrict or prohibit any remark that Employee might make in furtherance of any actual or contemplated litigation or proceeding involving any claim or allegation by Employee against Employer or Employer against Employee. In addition, following termination of Employee’s employment hereunder, Employee agrees to reasonably cooperate with Employer in any litigation or administrative proceedings involving any matters with which Employee was involved during Employee’s employment with Employer (excluding any such litigation or proceeding involving any claim or allegation by Employee against Employer). Employer shall reimburse Employee and his representatives for travel and other out of pocket expenses incurred by any of them in providing or facilitating such assistance, and Employer also shall reasonably compensate Employee and his representatives for their time spent in providing or facilitating such assistance.
(d) Forfeiture of Severance Benefits. In the event that Employee materially breaches any of Employee’s obligations under Section 8(a), (b) and (c), Employee shall immediately forfeit any right to the Severance Benefit under Section 5(d).
(e) Remedies. Employee acknowledges that monetary damages may not be sufficient to compensate Employer for any economic loss which may be incurred by reason of his breach of the restrictive covenants under this Section 8(a), (b) and (c). Accordingly, in the event of any such breach, Employer shall, in addition any remedies available to Employer under other provisions of this Agreement and/or at law, be entitled to obtain equitable relief in the form of an injunction precluding Employee from continuing such breach. Employee hereby waives any requirement for the posting of a bond or security in connection with such equitable relief.
9. Compliance with Section 409A of the Code.

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(a) Compliance with Section 409A of the Code. Certain benefits payable to Employee under this Agreement are intended to comply with or be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent the payments and benefits under this Agreement are subject to and not exempt from the requirements of Section 409A of the Code, this Agreement shall be interpreted, construed and administered in a manner that satisfies the requirements of Sections 409A(a)(2), (3) and (4) of the Code and the Treasury Regulations thereunder (and any applicable transition relief under Section 409A of the Code).
(b) Amendment of Agreement to Comply with Section 409A of the Code. If Employer and Employee determine that any benefits payable under this Agreement intended to comply with Sections 409A(a)(2), (3) and (4) of the Code are not exempt from the requirements of Section 409A of the Code and do not comply with Section 409A of the Code, Employer and Employee agrees to amend this Agreement, or take such other actions as Employer and Employee deem reasonably necessary or appropriate, to comply with the requirements of Section 409A of the Code, the Treasury Regulations thereunder (and any applicable transition relief) while preserving the economic agreement of the parties. If any provision of the Agreement would cause such payments or benefits to fail to so comply, such provision shall not be effective and shall be null and void with respect to such payments or benefits, and such provision shall otherwise remain in full force and effect; provided, however, that in the event of such provision being ineffective and null and void per the foregoing, then the parties shall amend this Agreement to provide Employee with other payments and benefits (which do comply with Section 409A of the Code) reasonably acceptable to Employee and having a dollar value no less than that of the excluded payments/benefits.
(c) Delayed Distribution under Section 409A of the Code. If Employee is a Specified Employee on the date of Employee’s Separation from Service, any payments or benefits under this Agreement that are subject to and not exempt from the requirements of Section 409A of the Code shall be delayed to the extent and amount necessary in order to comply with Section 409A(a)(2)(B)(i) of the Code, and such payments or benefits shall be paid or distributed to Employee during the five-day period commencing on the earlier of: (i) the expiration of the six-month period measured from the date of Employee’s Separation from Service, or (ii) the date of Employee’s death. Upon the expiration of the applicable six-month period under Section 409A(a)(2)(B)(i) of the Code, all payments deferred pursuant to this Section 9(c) shall be immediately paid to Employee (or Employee’s estate, in the event of Employee’s death) in a lump sum payment. Any remaining payments and benefits due under the Agreement shall be paid as otherwise provided in the Agreement.
(d) Section 409A Definitions. For purposes of the Agreement, the following terms shall have the meanings set forth below:
(i) “Separation from Service” with respect to Employee, shall mean Employee’s “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h).
(ii) “Service Provider” shall mean Employee or any other “service provider,” as defined in Treasury Regulation Section 1.409A-1(f).
(iii) “Service Recipient,” with respect to Employee, shall mean Employer and all persons considered part of the “service recipient,” as defined in Treasury Regulation Section 1.409A-1(g), as determined from time to time.
(iv) “Specified Employee” shall mean a Service Provider who, as of the date of the Service Provider’s “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h), is a “Key Employee” of the Service Recipient any stock of which is publicly traded on an established securities market or otherwise. For purposes of this definition, a Service Provider is a “Key Employee” if the Service Provider meets the requirements of Section 416(i)(1)(A)(i), (ii) or (iii) of the Code (applied in accordance with the Treasury Regulations thereunder and disregarding Section 416(i)(5) of the Code) at any time during the Testing Year. If a Service Provider is a “Key Employee” (as defined above) as of a Specified Employee Identification Date, the Service Provider shall be treated as “Key Employee” for the entire twelve (12) month period beginning on the Specified Employee Effective Date. The “Specified Employees” shall be determined in accordance with Section 409A(a)(2)(B)(i) of the Code and Treasury Regulation Section 1.409A-1(i).

(v) “Specified Employee Effective Date” means the April 1 following the Specified Employee Identification Date.
(vi) “Specified Employee Identification Date”, for purposes of Treasury Regulation Section 1.409A-1(i)(3), shall mean December 31. The “Specified Employee Identification Date” shall apply to all “nonqualified deferred compensation plans” (as defined in Treasury Regulation Section 1.409A-1(a)) of the Service Recipient and all affected Service Providers.
(vii) “Testing Year” shall mean the twelve (12) month period ending on the Specified Employee Identification Date.

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10. Golden Parachute Excise Tax.
Employer shall reimburse Employee for (a) any excise tax imposed by Section 4999 of the Code on any portion of the compensation or benefits payable by Employer or any of its parents, subsidiaries or other affiliates to Employee under this Agreement, all other contracts, arrangements or programs, and (b) any such excise tax and any other taxes imposed by the Code or under state or local law on the payments provided for in this Section 10 (including but not limited to the afore-described payments in this sentence). Employee and Employer agree to reasonably cooperate to mitigate the amount of any such tax that might become payable. Employer shall pay to Employee the payments, or portions thereof, provided for in this Section 10 not later than fifteen (15) days prior to the date on which such taxes, or portions thereof, are due as determined by the tax counsel referred to below. Tax counsel selected by Employer and reasonably acceptable to Employee shall determine the amounts (if any) due Employee under this Section 10, based on the actual tax rates to which Employee is subject at the time (or, if the actual tax rates cannot be determined at such time, based on the highest marginal tax rates of Employee). Employee shall provide such counsel with such information as such counsel reasonably requests in connection with such determination. All determinations of tax counsel shall be binding on Employee and Employer. Tax counsel shall determine that payments shall be due hereunder only if, and to the extent that, it is more likely than not that the payments or benefits are subject to a tax. In making the determinations required by this Section 10, tax counsel may rely on benefit consultants, accountants or other experts. Employer agrees to pay all reasonable fees and expenses of such tax counsel, benefits consultants, accountants or other experts. If, subsequent to the payment to Employee of payments pursuant to this Section 10, the tax counsel referred to in this Section 10 reasonably determines that the amount of the payments paid pursuant to this Section 10 are greater than, or less than, the amount required to have been paid, Employee shall reimburse Employer an amount, or Employer shall pay to Employee an additional amount, respectively, based upon such determination. In the event that tax counsel referred to in this Section 10 reasonably determines that Employee is required to pay excise tax, interest or penalties to a governmental taxing authority as a result of his non-payment of taxes where such tax counsel had determined that such taxes need not be paid or as a result of a miscalculation of such taxes, Employer shall pay to Employee an additional amount equal to (i) the amount of such interest and/or penalties, (ii) the excise tax which was not paid and (iii) any excise tax and any other taxes imposed by the Code or under state or local law on the payments provided for in this sentence.

11. Miscellaneous.
(a) Withholdings. All payments to Employee hereunder shall be made after reduction for all federal, state and local tax and other withholdings and payroll taxes, all as determined under applicable law and regulations, and Employer shall make all reports and similar filings required by such law and regulations with respect to such payments, withholdings and taxes.
(b) Unfunded Obligations. The interest of Employee under this Agreement shall be limited to the right to receive the benefits or payments under the terms and conditions of this Agreement and, except as otherwise provided by applicable law, the rights of Employee or his successor in interest shall be no greater than the right of an unsecured general creditor of Employer. This Agreement shall not create any right, title or interest in any assets of Employer in any Employee or his successor in interest.
(c) Successor and Assigns. This Agreement shall inure to the benefit of and shall be binding upon Employer, its successors and assigns. The obligations and duties of Employee hereunder shall be personal and not assignable. No part of the benefits to be made to Employee under this Agreement shall be liable for the debts, contracts or engagements of Employee, or his successors in interest, or be taken in execution by levy, attachment or garnishment or by any other legal or equitable proceeding, nor shall Employee, or his successors in interest, have any rights to alienate, anticipate, commute, pledge, encumber or assign any benefits or payments hereunder in any manner whatsoever; provided that the foregoing shall not limit or prohibit in any way any rights, benefits, remedies or claims of any of Employee’s heirs or successors in interest.
(d) Notices. Any and all notices, demands, requests or other communications hereunder shall be in writing and shall be deemed duly given when personally delivered to or transmitted by overnight express delivery or by facsimile to and received by the party to whom such notice is intended, or in lieu of such personal delivery or overnight express delivery or facsimile transmission, on receipt or return undelivered when deposited in the United States mail, first-class, certified or registered, postage prepaid, return receipt requested, addressed to the applicable party at the address set forth below such party’s signature to this Agreement. The parties may change their respective addresses for the purpose of this Section 11(d) by giving notice of such change to the other parties in the manner which is provided in this Section 11(d).
(e) Entire Agreement. This Agreement contains the entire agreement of the parties relating to the subject matter hereof, and it replaces and expressly supersedes any contemporaneous or prior agreements between the parties relating to said subject matter. No prior written or oral agreements or representations between Employer and Employee concerning his employment and originating before the date of this Agreement and not embodied in this Agreement shall be of any force or effect.

8

(f) Headings; Construction. The headings and captions used in this Agreement are used for convenience only and shall not affect the meaning, interpretation or contents of this Agreement. This Agreement shall be construed and interpreted without regard to any presumption or other rule requiring construction against the party drafting the document or any provision contained in the document. It shall be construed neither for nor against any party, but shall be given reasonable interpretation in accordance with the plain meaning of its terms and the intent of the parties.
(g) Waiver; Amendment. No provision hereof may be waived except by a written agreement signed by the waiving party. The waiver of any term or of any condition of this Agreement shall not be deemed to constitute the waiver of any other term or condition. This Agreement may be amended only by a written agreement signed by the parties hereto.
(h) Severability. If any of the provisions of this Agreement shall be held unenforceable by the final determination of a court of competent jurisdiction and all appeals there from shall have failed or the time for such appeals shall have expired, such provision or provisions shall be deemed eliminated from this Agreement but the remaining provisions shall nevertheless be given full effect. In the event this Agreement or any portion hereof is more restrictive than permitted by the law of the jurisdiction in which enforcement is sought, this Agreement or such portion shall be limited in that jurisdiction only to the extent required by the law of that jurisdiction.
(i) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of laws principles thereof.
(j) Counterparts; Facsimile Signatures. The Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which taken together shall constitute one and the same instrument. A facsimile or .pdf signature shall be deemed an original for purposes of evidencing execution of the Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.
 
	
					
	 
	 
	 
	 
	 

	“EMPLOYER”:
	 
	“EMPLOYEE”:

	 
	 
	 
	 
	 

	By:
	/s/ Thomas V. Hennessey, Jr.
	 
	 
	/s/ Fareed Kureshy

	 
	 
	 
	 
	Fareed Kureshy

	Name:
	Thomas V. Hennessey, Jr.
	 
	 
	 

	 
	 
	 
	 
	 

	Title:
	COO/CFO
	 
	 
	 

	 
	 
	 
	 

	Address:
	 
	 
	Address:

	 
	 
	 
	 

	2980 Scott Street
	 
	 
	 

	Street Address
	 
	 
	Street Address

	 
	 
	 
	 

	Vista, CA 92081
	 
	 
	 

	City        State        Zip Code
	 
	 
	City        State        Zip Code

9

EXHIBIT A
GENERAL RELEASE
This GENERAL RELEASE (the “Agreement”), dated                     , is made by Fareed Kureshy (“Employee”).
R E C I T A L S
A. Employee and AutoGenomics, Inc., a California corporation (“Employer”) are parties to into that certain Employment Agreement dated as of December 1st2012 (the “Employment Agreement”); and
B. Section 5(d)(ii) of the Employment Agreement provides for the payment of a severance benefit (“Severance Benefit”) to Employee by Employer in consideration for certain restrictive covenants, and the execution and non-revocation by Employee of a general release of claims by Employee against Employer and its subsidiaries and affiliates.
A G R E E M E N T
In consideration of the premises and the mutual covenants herein contained, Employee hereby agrees as follows.
1. Termination of Employment. Employee confirms that Employee’s employment with Employer terminated at the close of business as of                     .
2. General Release. As a material inducement for the payment of the severance benefit under Section 5(d)(ii) of the Employment Agreement, and except as otherwise provided in this Agreement, Employee hereby irrevocably and unconditionally releases, acquits and forever discharges the Releasees from any and all Claims that Employee had, has or may have against Releasees or any of them from the beginning of time through the date of execution of this Agreement. For purposes of this Agreement and the preceding sentence, the words “Releasee” or “Releasees” and “Claim” or “Claims” shall have the meanings set forth below:
(a) The words “Releasee” or “Releasees” shall refer to Employer and each of Employer’s owners, stockholders, predecessors, successors, assigns, agents, directors, officers, employees, representatives, attorneys, insurers, investors, advisors, parent companies, divisions, subsidiaries, affiliates (and agents, directors, officers, employees, representatives, attorneys and advisors of such parent companies, divisions, subsidiaries and affiliates) and all persons acting by, through, under or in concert with any of them.
(b) The words “Claim” or “Claims” shall refer to any charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs actually incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, which, except as limited by law or regulation such as the Age Discrimination in Employment Act (“ADEA”), Employee has or may have, own or hold against any of the Releases’ from the beginning of time through the date of execution of this Agreement; provided, however, that the word “Claim” or “Claims” shall not refer to any claim for breach of Section 4(c) or any of Sections 5 through 10 of the Employment Agreement, or any claim to the Severance Benefit (or to any other severance benefits or payments) under the Employment Agreement, or any claim to unpaid salary, bonus, vacation or other benefits or to unreimbursed expenses, or any claim arising under any outstanding stock option, restricted stock award or other stock based award granted to Employee by Employer, or any claim to any accrued benefits under the terms and conditions of any employee benefit plan maintained by Employer, or any claim to indemnification or insurance with respect to liability as an officer or director of Employer, or any claim regarding life insurance or disability insurance made available to Employee in connection with this Agreement, or any claims that cannot be waived or released by law. Subject to the foregoing proviso, Claims released pursuant to this Agreement by Employee include, but are not limited to, rights arising out of alleged violations of any contracts, express or implied, any tort, fraud, wrongful termination, discrimination, interference, defamation or negligence, any legal restrictions on Employer’s right to terminate employees, or any federal, state or other governmental statute, regulation, or ordinance, including, without limitation: (1) Title VII of the Civil Rights Act of 1964 (race, color, religion, sex and national origin discrimination); (2) 42 U.S.C. § 1981 (discrimination); (3) the ADEA, 29 U.S.C. §§ 621–634 (age discrimination); (4) 29 U.S.C. § 206(d)(l) (equal pay); (5) 42 U.S.C. §§ 12101, et seq. (disability); (6) the California Constitution, Article I, Section 8 (discrimination); (7) the California Fair Employment and Housing Act (discrimination, including race, color, national origin, ancestry, physical handicap, medical condition, marital status, religion, sex or age); (8) California Labor Code Section 1102.1 (sexual orientation discrimination); (9) the Executive Order 11246 (race, color, religion, sex and national origin discrimination); (10) the Executive Order 11141 (age discrimination); (11) §§ 503 and 504 of the Rehabilitation Act of 1973 (handicap 

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discrimination); (12) The Worker Adjustment and Retraining Act (WARN Act); (13) the California Labor Code (wages, hours, working conditions, benefits and other matters); (14) the Fair Labor Standards Act (wages, hours, working conditions and other matters); the Federal Employee Polygraph Protection Act (prohibits employer from requiring employee to take polygraph test as condition of employment); and (15) any federal, state or other governmental statute, regulation or ordinance which is similar to any of the statutes described in clauses (1) through (14). Nothing in this Agreement shall be construed to affect the Equal Employment Opportunity Commission’s or its state counterpart’s independent right and responsibility to enforce the law.
3. Civil Code Section 1542. Employee expressly waives and relinquishes all rights and benefits afforded by any statute (including but not limited to Section 1542 of the Civil Code of the State of California) which limits the effect of a release with respect to unknown claims. Employee does so understanding and acknowledging the significance of the release of unknown claims and the waiver of statutory protection against a release of unknown claims (including but not limited to Section 1542). Section 1542 of the Civil Code of the State of California states as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
Thus, notwithstanding the provisions of Section 1542 or of any similar statute, and for the purpose of implementing a full and complete release and discharge of the Releasees, Employee expressly acknowledges that this Agreement is intended to include in its effect, without limitation, all Claims which are known and all Claims which Employee does not know or suspect to exist in Employee’s favor at the time of execution of this Agreement and that this Agreement contemplates the extinguishment of all such Claims.
4. Discovery of Facts. Employee acknowledges that Employee might hereafter discover facts different from, or in addition to, those Employee now knows or believes to be true with respect to a Claim or Claims released herein, and Employee expressly agrees to assume the risk of possible discovery of additional or different facts, and agrees that this Agreement shall be and remain effective, in all respects, regardless of such additional or different discovered facts.
5. Employee’s Representations. Employee hereby represents and acknowledges that Employee has not filed any Claim of any kind against Employer or other Releasees. Employee further hereby expressly agrees never to initiate against Employer or other Releasees any administrative proceeding, lawsuit or any other legal or equitable proceeding of any kind asserting any Claims that are released in this Agreement.
6. No Assignment of Claims. Employee hereby represents and agrees that Employee has not assigned or transferred, or attempted to have assigned or transfer, to any person or entity, any of the Claims that Employee is releasing in this Agreement.
7. No Representations or Warranties. Employee represents and acknowledges that in executing this Agreement, Employee is not relying upon any representation, warranty or statement not set forth in this Agreement.
8. No Admission. This Agreement shall not in any way be construed as an admission by Employer that it has acted wrongfully with respect to Employee or any other person, or that Employee has any rights whatsoever against Employer, and Employer specifically disclaims any liability to or wrongful acts against Employee or any other person, on the part of itself, its employees or its agents.
9. Construction. This Agreement is made and entered into in California. This Agreement shall in all respects be interpreted, enforced and governed by and under the laws of the State of California without regard to conflicts of laws principles thereof and applicable Federal law.
10. Notices. Any notices required to be given under this Agreement shall be delivered either personally or by first class United States mail, postage prepaid, addressed to the respective parties as follows:
	
			
	 
	 
	 

	To Employer:
	 
	AutoGenomics, Inc.
2980 Scott Street
Vista, CA 92081
Attn: Corporate Secretary

	
			
	 
	 
	 

	To Employee:
	 
	Fareed Kureshy
To the address on Employee’s signature page

11. Revocation. Employee understands and acknowledges that Employee is hereby releasing any age claims he may have under the ADEA and that he is entering into this release freely and voluntarily. Employee understands that he has been given a 

A-2

period of forty-five (45) days to review and consider this Agreement (as well as statistical data on the persons eligible for similar benefits, if applicable) before signing it and may use as much of this forty-five (45) day period as Employee wishes prior to signing. Employee acknowledges that Employee has been advised to consult with an attorney before signing this Agreement. Employee understands and acknowledges that whether or not Employee consults with an attorney is Employee’s decision. Employee may revoke this Agreement within seven (7) days of signing it. If Employee wishes to revoke, Employee must provide written notice of such revocation to Employer’s Corporate Secretary no later than the close of business on the seventh (7th) day after Employee has signed the Agreement. If revoked, this Agreement shall not be effective and enforceable, and Employee will not receive payments or benefits under Section 5(d) of the Employment Agreement. Employee understands that this Agreement is final, binding and irrevocable eight (8) days after the execution and delivery.
12. Integration. This Agreement constitutes the entire agreement of the parties hereto and supersedes any and all other agreements (except the Employment Agreement) with respect to the subject matter of this Agreement, whether written or oral, between Employee and Employer. All modifications and amendments to this Agreement must be in writing and signed by the parties.
13. Further Assurances. Employee agrees, without further consideration, to sign or cause to be signed, and to deliver to Employer, any other documents and to take any other action as may be necessary to fulfill the obligations of Employee under this Agreement.
14. Severability. If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of the Agreement which can be given effect without the invalid provisions or application, and to this end the provisions of this Agreement are declared to be severable.
15. Counterparts. This Agreement may be executed in counterparts.
* * * * *
[remainder of page intentionally left blank]

A-3

I have read the foregoing Agreement, and I accept and agree to the provisions it contains and hereby execute the Agreement voluntarily and with full understanding of the consequences of the Agreement.
 
	
	
	“EMPLOYEE”:

	 

	 

	Fareed Kureshy

	 

	Address:

	 

	 

	Street Address

	 

	 

	City            State            Zip Code

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