Document:

Exhibit

EXECUTION VERSION

AMENDMENT NO. 8 TO CREDIT AGREEMENT 
AMENDMENT NO. 8 TO CREDIT AGREEMENT (this “Amendment”), dated as of February 26, 2019, is entered into among BIO-REFERENCE LABORATORIES, INC., a New Jersey corporation (“Company”), the Subsidiary Borrowers party hereto (“Subsidiary Borrowers,” and together with Company, each a “Borrower” and, collectively, the “Borrowers”), the other Loan Parties party hereto, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as the administrative agent for the Lenders (the “Administrative Agent”).

W I T N E S S E T H :
WHEREAS, the Borrowers, the other Loan Parties party thereto, the Lenders party thereto, and the Administrative Agent have executed and delivered that certain Credit Agreement dated as of November 5, 2015, as amended by Amendment No. 1 to Credit Agreement dated as of February 29, 2016, as amended by Amendment No. 2 to Credit Agreement dated as of September 26, 2016, as amended by Amendment No. 3 to Credit Agreement dated as of March 17, 2017, as amended by Amendment No. 4 to Credit Agreement dated as of August 7, 2017, as amended by Amendment No. 5 to Credit Agreement dated as of November 8, 2017, as amended by Amendment No. 6 to Credit Agreement dated as of December 22, 2017, and as amended by Waiver Under and Amendment No. 7 to Credit Agreement dated as of February 28, 2018 (as further amended, restated, supplemented, or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”); and

WHEREAS, the Borrowers have requested that the Lenders and the Administrative Agent make certain amendments to the Credit Agreement, and the Lenders party hereto, constituting all Lenders under the Credit Agreement, have agreed to such amendments, subject to the terms and conditions hereof.
NOW, THEREFORE, for and in consideration of the above premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, each of the Borrowers, the other Loan Parties, the Lenders and the Administrative Agent hereby covenant and agree as follows:
SECTION 1.  Definitions.  Unless otherwise specifically defined herein, each term used herein (and in the recitals above) which is defined in the Credit Agreement shall have the meaning assigned to such term in the Credit Agreement.  As of the date hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder,” “thereof” and words of like import), shall mean and be a reference to the Credit Agreement, as amended hereby.
SECTION 2.      Amendment to Credit Agreement.  Effective as of the Amendment No. 8 Effective Date (as defined below), the definition of “EBITDA” in Section 1.01 of the Credit Agreement is hereby amended by (a) deleting “and” at the end of clause (xi) thereof, (b) inserting “and” at the end of clause (xii) thereof, and (c) inserting the following as a new clause (a)(xiii) thereto:

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(xiii) cost-savings disclosed by the Borrowers to the Administrative Agent in writing on or about February 19, 2019; provided, that the amount of cost savings added back pursuant to this clause (xiii) for such period does not exceed (A) $15,970,000 for the twelve month period ending December 31, 2018, (B) $11,000,000 for the twelve month period ending March 31, 2019, (C) $5,500,000 for the twelve month period ending June 30, 2019, and (D) $0 for all other periods,
SECTION 3.      Conditions Precedent.  This Amendment shall become effective on the date (such date, the “Amendment No. 8 Effective Date”) the following conditions precedent shall have been satisfied:
(a)      receipt by the Administrative Agent of signatures to this Amendment from the parties listed on the signature pages hereto; and
(b)      the Administrative Agent shall have received from the Borrowers (or the Administrative Agent shall be satisfied with arrangements made for the payment thereof) all other costs, fees, and expenses owed by the Borrowers to the Administrative Agent in connection with this Amendment, including, without limitation, reasonable attorneys’ fees and expenses, in accordance with Section 9.03 of the Credit Agreement.
SECTION 4.      Miscellaneous.
(a)      Representations and Warranties.  To induce the Administrative Agent and Lenders to enter into this Amendment, the Borrowers hereby represent and warrant to the Administrative Agent and the Lenders that, other than with respect to the matters described in the Reservation of Rights Letter (as defined below), all representations and warranties of the Borrowers contained in Article III of the Credit Agreement or any other Loan Document are true and correct in all material respects with the same effect as though made on and as of the Amendment No. 8 Effective Date (except with respect to representations and warranties made as of an expressed date, which representations and warranties are true and correct in all material respects as of such date).
(b)      No Offset.  To induce the Administrative Agent and Lenders to enter into this Amendment, the Borrowers hereby acknowledge and agree that, as of the date hereof, and after giving effect to the terms hereof, there exists no right of offset, defense, counterclaim, claim, or objection in favor of the Borrowers or arising out of or with respect to any of the loans or other obligations of the Borrowers owed by the Borrowers under the Credit Agreement or any other Loan Document.
(c)      Loan Document.  The parties hereto hereby acknowledge and agree that this Amendment is a Loan Document.
(d)      Effect of Amendment.  Except as set forth expressly herein, all terms of the Credit Agreement and the other Loan Documents shall be and remain in full force and effect, and shall constitute the legal, valid, binding, and enforceable obligations of the Borrowers, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

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(e)      No Novation or Mutual Departure.  The Borrowers expressly acknowledge and agree that (i) this Amendment does not constitute or establish, a novation with respect to the Credit Agreement or any of the other Loan Documents, or a mutual departure from the strict terms, provisions, and conditions thereof, other than with respect to the amendments set forth in Section 2 above, and (ii) nothing in this Amendment shall affect or limit the Administrative Agent’s or any Lender’s right to (x) demand payment of the Obligations under, or demand strict performance of the terms, provisions and conditions of, the Credit Agreement and the other Loan Documents (in each case, as amended hereby), as applicable, (y) exercise any and all rights, powers, and remedies under the Credit Agreement or the other Loan Documents (in each case, as amended hereby) or at law or in equity, or (z) do any and all of the foregoing, immediately at any time during the occurrence of an Event of Default and in each case, in accordance with the terms and provisions of the Credit Agreement and the other Loan Documents (in each case, as amended hereby).  Nothing contained herein shall amend or constitute a waiver with respect to the reservation of rights set forth in that certain letter agreement dated January 8, 2019, from the Administrative Agent and acknowledged by the Loan Parties (the “Reservation of Rights Letter”).
(f)      Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument.  This Amendment may be executed by each party on separate copies, which copies, when combined so as to include the signatures of all parties, shall constitute a single counterpart of this Amendment.
(g)      Fax or Other Transmission.  Delivery by one or more parties hereto of an executed counterpart of this Amendment via facsimile, telecopy, or other electronic method of transmission pursuant to which the signature of such party can be seen (including, without limitation, Adobe Corporation’s Portable Document Format) shall have the same force and effect as the delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by facsimile or other electronic method of transmission shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability, or binding effect of this Amendment.
(h)      Recitals Incorporated Herein.  The preamble and the recitals to this Amendment are hereby incorporated herein by this reference.
(i)      Section References.  Section titles and references used in this Amendment shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto evidenced hereby.
(j)      Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws (and not the law of conflicts) of the State of New York, but giving effect to federal laws applicable to national banks.
(k)      Severability.  Any provision of this Amendment which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the 

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remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction.  
(l)      Reaffirmation of Loan Parties.  Each Loan Party (i) consents to the execution and delivery of this Amendment, (ii) reaffirms all of its obligations and covenants under the Loan Documents (including, without limitation, the Collateral Documents and the Loan Guaranty) to which it is a party, and (iii) agrees that, except to the extent amended hereby, none of its respective obligations and covenants under the Loan Documents shall be reduced or limited by the execution and delivery of this Amendment. 
[SIGNATURES ON FOLLOWING PAGES.]

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IN WITNESS WHEREOF, the Borrowers, the other Loan Parties, the Administrative Agent and the Lenders have caused this Amendment to be duly executed by their respective duly authorized officers as of the day and year first above written.
BORROWERS:
BIO-REFERENCE LABORATORIES, INC.
GENEDX, INC.
FLORIDA CLINICAL LABORATORY, INC.
MERIDIAN CLINICAL LABORATORY CORP.

By    /s/ Adam Logal    
Name:    Adam Logal
Title:    Vice President

OTHER LOAN PARTIES:
CAREEVOLVE.COM, INC.
BRLI-GENPATH DIAGNOSTICS, INC.
GENEDX MENA LLC

By    /s/ Adam Logal    
Name:    Adam Logal
Title:    Vice President

JPMORGAN CHASE BANK, N.A.,
Individually as a Lender and as Administrative Agent, Issuing Bank and Swingline Lender 
 
 
By    /s/ Eric A. Anderson    
Name:    Eric A. Anderson
Title:    Authorized Officer
 

[BRLI – Amendment No. 8 to Credit Agreement]Exhibit

Exhibit 10.1
SUMMARY OF DIRECTOR AND NAMED EXECUTIVE OFFICER COMPENSATION
This summary sets forth the compensation of the Directors of Kimball Electronics, Inc. (the “Company”).  The summary also includes compensation of the Company’s current Chief Executive Officer, Chief Financial Officer, and the three other most highly compensated executive officers, who will be referred to herein as our “Named Executive Officers.”
Director Compensation
All Non-Employee Directors receive annual retainer fees of $75,000 plus an additional $65,000 of retainer fees paid in shares of Common Stock of the Company for service as Directors.  The Lead Independent Director of the Board of Directors, the Chairperson of the Audit Committee of the Board of Directors, and the Chairperson of the Compensation and Governance Committee of the Board of Directors each receive an additional $10,000 annual retainer fee. 
The Directors can elect to receive some or all of the $75,000 portion of their annual retainer fees and the additional $10,000 annual retainer fee, if applicable, in shares of the Company’s Common Stock.  The additional $65,000 of annual retainer fees shall be paid in shares of the Company’s Common Stock.  The Company maintains a Non-Employee Directors Stock Compensation Deferral Plan, which allows Non-Employee Directors to elect to defer all, or a portion of, their stock retainer fees until termination of service from the Board.  Shares of Common Stock will be issued either under the Company’s 2014 Stock Option and Incentive Plan or the Non-Employee Directors Stock Compensation Deferral Plan.  Directors are also reimbursed for reasonable travel expenses incurred in connection with Board and Committee meeting attendance.
Donald D. Charron, Chairman of the Board and Chief Executive Officer, is a Director and also an employee of the Company but does not receive compensation for his service as a Director.
Named Executive Officer Compensation
Base Pay
Periodically, the Compensation and Governance Committee of the Board of Directors reviews and approves the salaries that are paid to the Company’s executive officers.  The following are the current annualized base salaries for the Company’s Named Executive Officers:
	
				
	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	$
	709,752
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	$
	397,800
	

	Steven T. Korn, Vice President, North American Operations
	$
	323,179
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	$
	322,264
	

	Christopher J. Thyen, Vice President, New Platforms
	$
	302,271
	

Cash Incentive Compensation
Each of the Named Executive Officers was eligible to participate in the Company’s 2014 Profit Sharing Incentive Bonus Plan (the “Plan”) during fiscal year 2018.  Under the Plan, cash incentives are accrued annually and paid in five installments over the succeeding fiscal year.  Except for provisions relating to retirement, death, permanent disability, and certain other circumstances described in a participant’s employment agreement, participants must be actively employed on each payment date to be eligible to receive any unpaid cash incentive installment.  The total amount of cash incentives accrued and authorized to be paid to the Named Executive Officers based on fiscal year 2018 results is listed below.  The Named Executive Officers received an installment of 50% of the payment in August 2018 and 12.5% each in September 2018, January 2019, and April 2019.  The remaining portion of 12.5% will be paid in June 2019.
	
				
	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	$
	461,584
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	$
	270,504
	

	Steven T. Korn, Vice President, North American Operations
	$
	210,279
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	$
	207,871
	

	Christopher J. Thyen, Vice President, New Platforms
	$
	196,675
	

Stock Compensation
The Named Executive Officers may also receive a variety of stock incentive benefits under the Company’s 2014 Stock Option and Incentive Plan consisting of: incentive stock options, stock appreciation rights, restricted shares, unrestricted shares, restricted share units, or performance shares and performance units.
The following table summarizes the long-term performance shares (“LTPS”) issued in the Company’s Common Stock during August 2018 to the Company’s Named Executive Officers pursuant to their fiscal year 2018 performance share awards:
	
				
	 
	 
	

LTPS Grant
(Shares Issued) (1)

	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	 
	74,351
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	 
	26,802
	

	Steven T. Korn, Vice President, North American Operations
	 
	15,493
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	 
	14,948
	

	Christopher J. Thyen, Vice President, New Platforms
	 
	14,590
	

	 
	 
	 

	(1) Shares have not been reduced by the number of shares withheld to satisfy tax withholding obligations.

During August 2018, the Compensation and Governance Committee awarded LTPS grants for fiscal year 2019 to key employees, including the Named Executive Officers, under the Company’s 2014 Stock Option and Incentive Plan.  One-third (1/3) of the August 2018 LTPS awards will vest annually over the succeeding three-year period.
The following table summarizes the maximum number of performance shares granted in August 2018 to the Company’s Named Executive Officers for fiscal year 2019: 
	
				
	 
	 
	LTPS Award
 (number of shares)

	Donald D. Charron, Chairman of the Board, Chief Executive Officer
	 
	65,692
	

	John H. Kahle, Vice President, General Counsel, Chief Compliance Officer, Secretary
	 
	16,746
	

	Steven T. Korn, Vice President, North American Operations
	 
	13,181
	

	Michael K. Sergesketter, Vice President, Chief Financial Officer
	 
	12,934
	

	Christopher J. Thyen, Vice President, New Platforms
	 
	12,351
	

The number of shares to be issued to each participant is based upon a combination of the bonus percentage attainment component calculated under the Company’s profit sharing incentive bonus plan, adjusted to a three-year average bonus percentage, and a growth attainment component, which is the Company’s growth in sales revenue based on comparison of its three-year compounded annual growth rate (“CAGR”) with the Electronics Manufacturing Services Industry’s three-year CAGR.
Retirement Plans
The Named Executive Officers participate in a defined contribution, participant-directed retirement plan that all domestic employees are eligible to participate in (the “Retirement Plan”).  The Retirement Plan provides for voluntary employee contributions as well as a discretionary Company contribution which is determined annually by the Compensation and Governance Committee of the Board of Directors.  Each eligible employee’s Company contribution is defined as a percent of eligible compensation, the percent being identical for all eligible employees, including Named Executive Officers.  Participant contributions are fully vested immediately, and Company contributions are fully vested after five years of participation.  All Named Executive Officers are fully vested.  The Retirement Plan is fully funded.  For those eligible employees who, under the 1986 Tax Reform Act, are deemed to be highly compensated, their individual Company contribution under the Retirement Plan is reduced.  For employees who are eligible, including all Named Executive Officers, there is a nonqualified, supplemental employee retirement plan (“SERP”) in which the Company contributes to the account of each individual an amount equal to the reduction in the contribution under the Retirement Plan arising from the provisions of the 1986 Tax Reform Act.  The SERP investment is primarily composed of employee contributions.

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