Document:

Exhibit 4.1

    
      

      

    

    
 

    Exhibit
      4.1

    

      __________________

       

      Name
        of
        Investor

      

      ROSEWIND
        CORPORATION

      

      SUBSCRIPTION
        TO COMMON SHARES

      

      

      The
        undersigned hereby subscribes for ____________ shares of common stock (No
        Par
        Value) of Rosewind Corporation (the “Shares”), a corporation organized under the
        laws of the State of Colorado (the “Company” or the “Corporation”), for $0.25
        per share and agrees to pay for said Shares in cash in the amount of $_________
        upon acceptance by the Corporation of this subscription and payment for Shares.
        Certificates for such Shares shall be issued to the undersigned as fully
        paid
        and non-assessable.

      

      The
        undersigned represents and warrants as follows:

      

      1. The
        Shares are being acquired by the undersigned for the undersigned's own account
        and not on behalf of any other person.

      

      1. The
        Shares are being acquired for investment purposes only and not for
        distribution.

      

      2. The
        undersigned acknowledges that the Company is a sailing school with a sailing
        vessel located in Australia but no students have enrolled to date.

      

      4. The
        undersigned has been given the opportunity to review (and to have the
        undersigned's attorney, accountant, and/or financial advisor review) the
        Corporation's prospectus on Form SB-2 together with its Articles of
        Incorporation and Bylaws which documents have been filed with the U.S.
        Securities and Exchange Commission (“SEC”), and are available for viewing and
        copying on the SEC’s website: www.sec.gov.

      

      5. The
        undersigned has been given the opportunity to discuss the business, financial
        condition, and affairs of the Corporation with its management. The undersigned
        has reviewed this information and his/her contemplated investment with his
        legal, investment, financial, and tax and accounting advisors to the extent
        the
        undersigned deems such review necessary. As a result, the undersigned is
        cognizant of the financial condition, capitalization, and proposed operations
        and financing of the Company, and the undersigned has available full information
        concerning its affairs and has been able to evaluate the merits and risks
        of the
        investment in the Shares.

      

      6. That
        the
        undersigned understands the special risks of an investment in the Shares,
        in
        particular, those special risks due to its being a sailing school with lack
        of
        operating history, and due to its limited capitalization.

       

       

      
        
          
          

        

        
          -
            1
            -

          
            

          

        

        
          
          

        

      

      

      7. The
        undersigned acknowledges that an investment in the Shares is one of high
        risk
        and is suitable only for investors who can withstand the risk of loss of
        their
        entire investment. The undersigned further acknowledges that he or she will
        only
        make an investment in the Shares after having completed his or her own due
        diligence investigation and after consulting with his or her own legal,
        financial and investment advisors to the extent the undersigned deems
        appropriate. 

      

      8.. The
        undersigned acknowledges and understands that there is currently no market
        for
        the Shares. 

      

      9.. The
        Company has given the undersigned the opportunity to ask questions of and
        to
        receive answers from persons acting on the Company's behalf concerning the
        terms
        and conditions of this trans-action and the undersigned also has been given
        the
        opportunity to obtain any additional informa-tion regarding the Company which
        the Company possesses or can acquire without unreasonable effort or expense.
        The
        Company has furnished the undersigned with any information regarding the
        Company
        requested in writing by the undersigned.

      

      10. This
        Subscription Agreement shall be irrevocable unless it is rejected by the
        Company.

      

      11. The
        undersigned acknowledges and represents that he or she is a knowledgeable
        investor who can fend for himself or herself and has adequate means to make
        the
        investment in the Shares; and that, in connection with the purchase of the
        Shares, he or she has obtained investment advice from outside sources, including
        his or her investment adviser and private attorney and/or accountant as he
        or
        she deemed necessary to make an informed investment decision.

      

      12. The
        undersigned is not a member of the National Association of Securities Dealers,
        Inc., nor affiliated with an NASD member broker-dealer firm except as
        follows:

              ____________________________________________________________.

         

      13. This
        Agreement may be amended or modified only in writing signed by the parties
        hereto. No evidence shall be admissible in any court concerning any alleged
        oral
        amendment hereof. This Agreement fully integrates all prior agreements and
        understandings between the parties concerning its subject matter.

      

      14. This
        Agreement binds and inures to the benefit of the representatives, successors
        and
        permitted assigns of the respective parties hereto.

      

      15. Each
        party hereto agrees for itself, its successors and permitted assigns to execute
        any and all instruments necessary for the fulfillment of the terms of this
        Agreement.

      

      16. This
        Agreement is made under, shall be construed in accordance with and shall
        be
        governed by the laws of the State of Colorado.

       

       

      
        
          
          

        

        
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            2
            -

          
            

          

        

        
          
          

        

      

      
 

      17.
        The
        undersigned hereby tenders the amount set forth above, in cash, in full payment
        for the Shares.

      

      18. By
        the
        undersigned's execution below, it is acknowledged and understood that the
        Company is relying upon the accuracy and completeness hereof in complying
        with
        certain obligations under applicable securities laws. The undersigned recognizes
        that the sale of the Shares by the Company will be based upon his/her
        representations and warranties set forth herein and the statements made by
        it
        herein.

      

      IN
        WITNESS WHEREOF, subject to acceptance by the Company, the undersigned has
        completed this Subscription Agreement to evidence the undersigned's subscription
        to purchase the Shares as set forth above.

       

      “The
        undersigned acknowledges that Corporate Stock Transfer, Inc.  is
        acting only as an escrow agent in connection with the offering of the securities
        described herein, and has not endorsed, recommended or guaranteed the purchase,
        value or repayment of such Interests.”

       

      Date:

      __________________________________

      SIGNATURE
        OF SUBSCRIBER

      

      __________________________________

      PRINTED
        NAME OF SUBSCRIBER

      

      __________________________________

      SOCIAL
        SECURITY NUMBER  

                         OF
        SUBSCRIBER

      

      __________________________________

      STREET
        ADDRESS

      

      __________________________________

      CITY  STATE ZIP 

       

      

      __________________________________

      SIGNATURE
        OF SPOUSE

      (if
        purchasing jointly)

      

      __________________________________

      PRINTED
        NAME OF SPOUSE

      (if
        applicable)

      

      ACCEPTED
        BY:

      ROSEWIND
        CORPORATION

      

      DATE:__________________________

      

      BY:
        ______________________________

        JAMES
        WIEGAND, PRESIDENT

       

       

       

      
        
          
          

        

        
          -
            3
            -Exhibit 10.1

     

    
      

      

    

    Exhibit
      10.1

     

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      .Exhibit 99.1 Employment Agreement

    
      

    

    
      

    

    

      EMPLOYMENT
        AGREEMENT

      

       

      This
        Employment Agreement (the “Agreement”) is entered into as of this 23rd day of
        April, 2007 by and between Chembio Diagnostics, Inc., a Nevada corporation
        (the
“Company”), and Javan Esfandiari (“Employee”) and to be effective as of March 5,
        2007 (the “Effective Date”). Employee and the Company are sometimes referred to
        individually as a “Party” and collectively as the “Parties”.

       

      In
        consideration of the mutual covenants, promises and agreements herein contained,
        the Company and Employee hereby covenant, promise and agree to and with each
        other as follows:

       

      1.  Employment.
        The
        Company shall employ Employee and Employee shall perform services for and
        on
        behalf of the Company upon the terms and conditions set forth in this
        Agreement.

      

      2.  Positions
        and Duties of Employment.
        Employee shall be required to devote his full energy, skill and best efforts
        as
        required to the furtherance of his managerial duties with the Company as
        the
        Company’s Senior Vice President of Research and Development. While serving in
        such capacities, Employee shall have the responsibilities, duties, obligations,
        rights, benefits and requisite authority as is customary for his position
        and as
        may be determined by the Company’s Board of Directors (the
“Board”).

       

      Employee
        understands that his employment as Senior Vice President of Research and
        Development of the Company involves a high degree of trust and confidence,
        that
        he is employed for the purpose of furthering the Company’s reputation and
        improving the Company’s operations and profitability, and that in executing this
        Agreement he undertakes the obligations set forth herein to accomplish such
        objectives. Employee agrees that he shall serve the Company fully, diligently,
        competently and to the best of his ability. Employee certifies that he fully
        understands his right to discuss this Agreement with his attorney, that he
        has
        availed himself of this right to the extent that he desires, that he has
        carefully read and fully understands this entire Agreement, and that he is
        voluntarily entering into this Agreement.

       

      3. Duties.
        Employee shall perform the following services for the Company:

       

         (a)  Employee
        shall serve as Senior Vice President of Research and Development of the Company,
        or in such other position as determined by the Board, and in those capacities
        shall work with the Company to pursue the Company’s plans as directed by the
        Board.

       

      (b)  Employee
        shall perform duties with the functions of an officer of the Company, subject
        to
        the direction of the Board.

        

      
        
           

        

        
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      (c)  During
        the Term (as defined in Section 4 below) of this Agreement, Employee shall
        devote substantially all of Employee’s business time to the performance of
        Employee’s duties under this Agreement. Without limiting the foregoing, Employee
        shall perform services on behalf of the Company for at least forty hours
        per
        week, and Employee shall be reasonably available at the request of the Company
        at other times, including weekends and holidays, to meet the needs and requests
        of the Company’s customers.

      

      (d)  During
        the Term, Employee will not engage in any other activities or undertake any
        other commitments that conflict with or take priority over Employee’s
        responsibilities and obligations to the Company and the Company’s customers,
        including without limitation those responsibilities and obligations incurred
        pursuant to this Agreement.

       

       

      4.
         Term.
        Unless
        terminated earlier as provided for in this Agreement, the term of this Agreement
        shall be for three years, commencing on the Effective Date and ending on
        the
        third anniversary of the Effective Date (the “Term”). If the employment
        relationship is terminated by either Party, Employee agrees to cooperate
        with
        the Company and with the Company’s new management with respect to the transition
        of the new management in the operations previously performed by Employee.
        Upon
        Employee’s termination, Employee agrees to return to the Company all Company
        documents (and all copies thereof), any other Company property in Employee’s
        possession or control, and any materials of any kind that contain or embody
        any
        proprietary or confidential material of the Company.

       

      5.
         Base
        Salary.
        As
        compensation for the services to be performed by Employee during the Term,
        Company shall pay Employee a base salary payable in accordance with the
        Company’s customary payroll practices (the “Base Salary”), at the following
        annual rates:

      

      (a)
         For
        the
        period from the Effective Date to the first anniversary of the Effective
        Date
        (the “First Anniversary”), $185,000.00 per year.

      

      (b)
         For
        the
        period from the First Anniversary of the Effective Date to the second
        anniversary of the effective date (the “Second Anniversary”), $210,00.00 per
        year.

      

      (c)
         For
        the
        period from the Second Anniversary of the Effective Date to the third
        anniversary of the Effective Date, $235,000.00 per year.

      

      6.
         DPP
        Cash Bonus.
        

      

      (a)  In
        respect to the services to be performed by Employee hereunder, the Company
        shall
        pay to Employee additional incentive cash compensation for calendar year
        2007
        (“2007”), calendar year 2008 (“2008”) and calendar year 2009 (“2009”) up to the
        maximum amount of thirty-seven and one-half (37.5%) percent of Employee’s
        Calendar Year Base Salary (as hereinafter defined) for each of 2007, 2008
        and
        2009 (each, a “DPP Cash Bonus”) based upon the performance of the Company’s Dual
        Path Platform (“DPP”) Technology during 2007, 2008 and 2009 (the “DPP Technology
        Performance”), which is directly related to the achievement of certain DPP
        Technology annual revenue targets budgeted by management of the Company for
        2007, 2008 and 2009 (each a “DPP Revenue Target”). Employee acknowledges that he
        is aware of the DPP Revenue Target for 2007, and acknowledges and accepts
        the
        DPP Revenue Target for 2008 and 2009 will be solely determined by the Company
        subsequent to the Effective Date. The amount of the DPP Cash Bonus, if any,
        to
        be earned by Employee for each of 2007, 2008 and 2009 shall be determined
        in the
        following manner:

      

      
        
           

        

        
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      (i)
         If
        the
        Actual DPP Revenue Amount (as defined below) exceeds the DPP Revenue Target
        for
        the year under consideration (i.e., either 2007, 2008 or 2009), the Company
        shall pay to Employee the full DPP Cash Bonus for such year, which shall
        equal
        thirty-seven and one-half (37.5%) percent of Employee’s Calendar Year Base
        Salary for such year;

      

      (ii)
         If
        the
        Actual DPP Revenue Amount is seventy-five (75%) percent or less than the
        DPP
        Revenue Target for the year under consideration, Employee shall not receive
        any
        DPP Cash Bonus for such year; provided,
        however,
        that,
        notwithstanding the foregoing, if the Actual DPP Revenue Amount is between
        fifty
        (50%) percent and seventy-five (75%) percent of the DPP Target for the year
        under consideration, the Company shall pay to Employee a DPP Cash Bonus for
        such
        year equal to $10,000, which DPP Cash Bonus shall not reduce any Discretionary
        Cash Bonus (as such term is defined in Section 7 below) that the Company
        may
        award to Employee pursuant to Section 7 of this Agreement; and

        

      (iii)
         If
        the
        Actual DPP Revenue Amount is between seventy-six (76%) percent and one hundred
        (100%) percent of the DPP Revenue Target for the year under consideration,
        the
        Company shall pay to Employee a DPP Cash Bonus for such year equal to one
        and
        one-half (1.5%) percent of Employee’s Calendar Year Base Salary for each full
        (and only full) one (1%) percent (up to a maximum of twenty-five (25%) percent)
        by which Actual DPP Revenue exceeds seventy-five (75%) percent of the
        appropriate DPP Revenue Target. For example, if (A) Employee’s Calendar Year
        Base Salary for 2007 is $180,000, the maximum DPP Cash Bonus Employee may
        earn
        for 2007 is $67,500 (i.e., thirty-seven and one-half (37.5%) percent multiplied
        by $180,000); and (B) Actual DPP Revenue is $80 and the DPP Revenue Target
        for
        2007 is $100, the Company would have achieved eighty (80%) percent of the
        DPP
        Revenue Target for 2007; then (C) Employee would be entitled to $13,500 as
        his
        DPP Cash Bonus for 2007, or 5/25 or twenty (20%) percent, of the maximum
        $67,500
        DPP Cash Bonus available to be earned by Employee for 2007.

      

      (b)
         For
        purposes of this Agreement, the following terms shall have the following
        meanings: 

      

      (i)
         “Calendar
        Year Base Salary” means, for the year under consideration, Employee’s actual
        gross base salary for such year as reported on the Internal Revenue Service
        (“IRS”) Form W-2 Wage and Tax Statement provided by the Company to Employee for
        such year; and

      

      (ii)
         “Actual
        DPP Revenue” means, for the year under consideration, the Company’s product,
        license and royalty revenue for its DPP Technology as solely determined by
        the
        Company in accordance with generally accepted accounting principles,
        consistently applied.

      
 

      
        
           

        

        
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      (c)
         The
        calculation as to the amount of the DPP Cash Bonus, if any, to be paid by
        the
        Company to Employee for 2007, 2008 and 2009 shall be completed by the Company
        within ten (10) days after the filing by the Company of its Annual Report
        on
        Form 10-KSB (“10-K”) for the relevant year. The DPP Cash Bonus, if any, shall be
        paid by the Company to Employee promptly after the completion of each such
        calculation.

      

      7.
         Discretionary
        Cash Bonus.
        Subject
        to the recommendation of the Company’s chief executive officer, but in the sole
        and absolute discretion of the Board or the Compensation Committee of the
        Board,
        the Company may award Employee a discretionary cash bonus of up to a maximum
        of
        twelve and one-half (12.5%) percent of the Employee’s Calendar Year Base Salary
        for each calendar year during the Term (“Discretionary Cash Bonus”). Any
        Discretionary Cash Bonus awarded by the Company to Employee hereunder shall
        be
        paid within ten (10) days after the filing by the Company of its 10-K for
        the
        relevant year.

       

      8.
         Base
        Stock Grant.
        In
        recognition of Employee’s importance and value to the Company and as an
        inducement for Employee to enter into this Agreement, but subject in all
        respects to the terms and conditions of this Agreement, including, without
        limitation, the vesting schedule set forth below and the provisions of Section
        10 herein, the Company hereby grants to Employee on the date of this Agreement
        (for purposes of this Section 8, the “Stock Grant Date”), 200,000 shares (the
“Base Shares” and together with the DPP Bonus Shares (as hereinafter defined),
        if any, the “Shares”) of the Company’s common stock, $0.01 par value per share
        (the “Common Stock”). The purchase price for the Base Shares is $0. One Hundred
        Thousand (100,000) of the Base Shares shall vest immediately on the Stock
        Grant
        Date. Subject to the terms and conditions of this Agreement, the remaining
        One
        Hundred Thousand (100,000) of the Base Shares (the “Restricted Base Shares”)
        shall vest as follows:

      

      (a)
         Fifty
        Thousand (50,000) Shares on the First Anniversary; and

      

      (b)
         Fifty
        Thousand (50,000) Shares on the Second Anniversary.

      

      Subject
        to Section 10(i) hereof, certificates representing the Base Shares shall
        be
        issued immediately and delivered by the Company to Employee promptly after
        each
        vesting date. There shall be no proportionate or partial vesting of the Base
        Shares between the aforesaid vesting dates.

       

      

      
        
           

        

        
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      9.
         DPP
        Bonus Stock Grant.

       

      (a)
         In
        respect of the services to be performed by Employee hereunder, the Company
        shall
        grant to Employee up to the additional maximum amount of 50,000 shares of
        Common
        Stock (the “DPP Bonus Shares”) for 2007 and 2008 based upon the DPP Technology
        Performance. The number of DPP Bonus Shares, if any, to be granted to Employee
        for each of 2007 and 2008 shall be determined in the following
        manner:

      

      (i)
         If
        the
        Actual DPP Revenue Amount exceeds the DPP Revenue Target for the year under
        consideration (i.e., either 2007 or 2008), the Company shall grant to Employee
        the full 50,000 DPP Bonus Shares for such year;

      

      (ii)
         If
        the
        Actual DPP Revenue is seventy-five (75%) percent or less than the DPP Revenue
        Target for the year under consideration, Employee shall not receive any DPP
        Bonus Shares for such year; and

      

      (iii)
         If
        the
        Actual DPP Revenue is between seventy-six (76%) percent and one hundred (100%)
        percent of the DPP Revenue Target for the year under consideration, the Company
        shall grant to Employee, 2,000 DPP Bonus Shares for each full (and only full)
        one (1%) percent (up to a maximum of twenty-five (25%) percent) by which
        Actual
        DPP Revenue exceeds seventy-five (75%) percent of the appropriate DPP Revenue
        Target. For example, if Actual DPP Revenue is $80 for 2007, and the DPP Revenue
        Target is $100 for 2007, the Company would have achieved eighty (80%) percent
        of
        the DPP Revenue Target for 2007 which would entitle Employee to 10,000 DPP
        Bonus
        Shares, or 5/25 or twenty (20%) percent, of the maximum 50,000 DPP Bonus
        Shares
        available to be earned by Employee for 2007.

      

      (b)
         The
        calculation as to the number of DPP Bonus Shares, if any, to be granted by
        the
        Company to Employee for 2007 and 2008 shall be completed by the Company within
        ten (10) days after the filing by the Company of its 10-K for the relevant
        year.
        Subject to Section 10(i) hereof, certificates representing the DPP Bonus
        Shares
        earned by Employee, if any, shall be issued and delivered by the Company
        to
        Employee promptly after the completion of each such calculation.

      

      10.
         Certain
        Provisions Relating to the Shares and the Restricted Shares.
        

      

      (a)
         Restrictions
        on Transfer.
        Employee shall not sell, transfer, pledge, hypothecate, assign or otherwise
        encumber and dispose of the Restricted Shares, except as set forth in this
        Agreement. Any attempted sale, transfer, pledge, hypothecation, assignment
        or
        other disposition of the Restricted Shares in violation of this Agreement
        shall
        be void and of no effect and the Company shall have the right to disregard
        the
        same on its books and records and to issue “stop transfer” instructions to its
        transfer agent. The provisions of this Section 10(a) shall cease to apply
        to the
        Restricted Shares on the date such Shares become vested hereunder.

      

      
        
           

        

        
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      (b)
         Forfeiture;
        Immediate Vesting.
        If
        Employee’s employment is terminated by Employee at any time other than during
        the six (6) month period immediately following a Change of Control (as such
        term
        is hereinafter defined) or by the Company for Cause (as such term is hereinafter
        defined), then Employee will forfeit, without compensation, any and all
        Restricted Shares that are unvested as of the date of termination of Employee’s
        employment. In the event of a Change of Control, or in the event the Company
        terminates Employee’s employment hereunder without his consent for a reason
        other than Cause, then all of the Restricted Shares shall vest
        immediately.

      

      (c)
         Adjustments.
        In the
        event of any stock dividend, split up, split-off, spin-off, distribution,
        recapitalization, combination or exchange of shares, merger, consolidation,
        reorganization or liquidation or the like, the Restricted Shares shall be
        adjusted on the same basis as other shares of Common Stock.

      

      (d)
         Taxes;
        Section 83(b) Election.
        Employee acknowledges that it is Employee’s sole responsibility and not the
        Company’s, to file timely and properly any election under Section 83(b) of the
        Internal Revenue Code of 1986, as amended (the “Code”), and any corresponding
        provisions of the state tax laws, if Employee wishes to utilize such election.
        Employee further acknowledges that (i) no later than the date on which any
        Shares shall have been granted to Employee hereunder, Employee shall pay
        to the
        Company, or make arrangements satisfactory to the Company regarding payment
        of,
        any federal, state or local income or other taxes of any kind required by
        law to
        be withheld with respect to any such Shares; (ii) the Company shall, to the
        extent permitted by law, have the right to deduct from any payment of any
        kind
        otherwise due to Employee any federal, state or local income or other taxes
        of
        any kind required by law to be withheld with respect to any Shares which
        shall
        have been granted by the Company hereunder, including that the Company may,
        but
        shall not be required to, sell a number of Shares sufficient to cover applicable
        withholding taxes; and (iii) in the event that Employee does not satisfy
        (i)
        above on a timely basis, the Company may, but shall not be required to (and
        shall not to the extent it would violate the Sarbanes-Oxley Act), pay such
        required withholding and treat such amount as a demand loan to Employee at
        the
        maximum rate permitted by law, with such loan, at the Company’s sole discretion
        and provided the Company so notifies Employee within thirty (30) days of
        the
        making of the loan, secured by the Shares and any failure by Employee to
        pay the
        loan upon demand shall entitle the Company to all of the rights at law of
        a
        creditor secured by the Shares. The Company may hold as security any
        certificates representing any Shares and, upon demand of the Company, Employee
        shall deliver to the Company any certificates in Employee’s possession
        representing Shares together with a stock power duly endorsed in blank.

      

      (e)
         Legends.
        All
        certificates representing the Shares shall have endorsed thereon the following
        legends:

      

      (i) “THESE
        SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY
        MAY
        NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
        AN
        EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN
        OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
        NOT
        REQUIRED.”

      

      
        
           

        

        
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      (ii)
         Any
        legend required to be placed thereon by applicable blue sky laws or other
        law of
        any state or securities law.

       

      (f)
         Securities
        Representations.
        The
        Shares are being issued to Employee in reliance upon the following express
        representations and warranties: (i) the Shares are being acquired for Employee’s
        own account and not with a view to, or for sale with, the distribution thereof,
        nor with any present intention of distributing or selling any such Shares;
        (ii)
        Employee has been advised that he may be an “affiliate” within the meaning of
        Rule 144 under the Securities Act of 1933 (the “Act”) and in this connection the
        Company is relying in part on Employee’s representations set forth in this
        paragraph; (iii) if Employee is an affiliate, the Shares must be held and
        sold
        only pursuant to any available exemption from any applicable resale restrictions
        or until the Company files a registration statement (or a “re-offer prospectus”)
        with regard to such Shares and the Company is under no obligation to register
        the Shares (or to file a “re-offer prospectus”); (iv) the transfer of Shares has
        not been registered under the Act, and the Shares must be held indefinitely
        unless subsequently registered under the Act or an exemption from such
        registration is available and the Company is under no obligation to register
        the
        Shares; and (v) if Employee is an affiliate, Employee understands that the
        exemption from registration under Rule 144 will not be available unless (i)
        a
        public trading market then exists for the Shares of the Company; (ii) adequate
        information concerning the Company is then available to the public; and (z)
        other terms and conditions of Rule 144 or any exemption therefrom are complied
        with and that any sale of the Shares may be made only in limited amounts
        in
        accordance with such terms and conditions.

      

      (g)
         Not
        an
        Employment Agreement.
        The
        issuance of the Shares hereunder does not constitute an agreement by the
        Company
        to continue to employ Employee during the entire, or any portion of, the
        Term,
        including, but not limited to, any period during which the Restricted Shares
        are
        unvested.

      

      (h)
         Attorney-in-Fact
        Status.
        The
        Company, its successors and assigns, is hereby appointed Employee’s
        attorney-in-fact, with full power of substitution, for the purpose of carrying
        out the provisions of this Agreement and taking any action and executing
        any
        instruments which such attorney-in-fact may deem necessary or advisable to
        accomplish the purposes hereof, which appointment as attorney-in-fact is
        irrevocable and coupled with an interest. Upon the Board’s request, Employee
        will deliver to the Company a duly signed stock power, endorsed in blank,
        relating to the Restricted Shares, solely to enable the Company to retire
        or
        cancel the Restricted Shares upon forfeiture in accordance with this
        Agreement.

      

      (i)
         Uncertificated
        Shares.
        Notwithstanding anything else herein, the Board may, in its sole and absolute
        discretion and in accordance with Nevada law, issue the Shares in the form
        of
        uncertificated shares of Common Stock. Such uncertificated shares shall be
        credited to a book entry account maintained by the Company (or its designee)
        on
        Employee’s behalf. If thereafter, certificates are issued with respect to the
        uncertificated Shares, such issuance and delivery of certificates shall be
        in
        accordance with the applicable terms of this Agreement.

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      11.
         Stock
        Option Grant.

      

      (a)
         Grant
        of Stock Options.
        In
        further recognition of Employee’s importance and value to the Company and as an
        additional inducement for Employee to enter into this Agreement, but subject
        in
        all respects to the terms and conditions of this Agreement, including, without
        limitation, the vesting schedule set forth below, and the Company’s 1999 Equity
        Incentive Plan (the “Plan”) and the Company’s form of Stock Option Agreement
        annexed hereto as Exhibit A, the Company hereby grants to Employee on the
        date
        of this Agreement (for purposes of this Section 11, the “Stock Option Grant
        Date”), stock options to purchase 300,000 shares of Common Stock (the
“Options”), which are intended to be incentive stock options under the Plan and
        within the meaning of Section 422 of the Code. The price per share of the
        Options shall be equal to the Fair Market Value (as such term is defined
        below)
        of the Common Stock on the Stock Option Grant Date. For purposes of this
        Agreement, the term “Fair Market Value” shall mean the closing price of the
        Common Stock on the Stock Option Grant Date on the OTC Bulletin Board, as
        reported by the National Association of Securities Dealers Automated Quotation
        System (“NASDAQ”) or NASDAQ’s successor. One hundred thousand (100,000) of the
        Options shall vest immediately on the Stock Option Grant Date. Subject to
        the
        terms and conditions of this Agreement, the remaining 200,000 Options (the
        “Restricted Options”) shall vest as follows:

      

      (i)
         One
        Hundred Thousand (100,000) Options on the First Anniversary; and

      

      (ii)
         One
        Hundred Thousand (100,000) Options on the Second Anniversary.

      

      (b)
         No
        Proportionate or Partial Vesting.
        There
        shall be no proportionate or partial vesting of the Restricted Options between
        the vesting dates set forth in subparagraph 11(a) above.

      

      (c)
         Restrictions
        on Transfer.
        Employee shall not exercise, sell, transfer, pledge, hypothecate, assign
        or
        otherwise encumber or dispose of the Restricted Options, except as set forth
        in
        this Agreement. Any attempted exercise, sale, transfer, pledge, hypothecation,
        assignment or other disposition of the Restricted Options in violation of
        this
        Agreement shall be void and of no effect. The provisions of this Section
        11(c)
        shall cease to apply to the Restricted Options on the date such Options become
        vested hereunder.

      

      (d)
         Forfeiture;
        Immediate Vesting.
        If
        Employee’s employment is terminated by Employee at any time other than during
        the six (6) month period immediately following a Change of Control or by
        the
        Company for Cause, then Employee will forfeit, without compensation, any
        and all
        Restricted Options that are unvested as of the date of termination of Employee’s
        employment. In the event of a Change of Control or in the event the Company
        terminates Employee’s employment hereunder without his consent for a reason
        other than Cause, then all of the Restricted Options shall vest
        immediately.

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      12.
         Certain
        Additional Provisions Relating to Compensation and 

      Other
        Employee Benefits.

      

      (a)
         If
        Employee is eligible, the Company shall include Employee in any profit sharing
        plan, executive stock option plan, pension plan, retirement plan, medical
        and/or
        hospitalization plan, and/or any and all other benefit plans, except for
        disability and life insurance, which may be placed in effect by the Company
        for
        the benefit of the Company’s executive officers during the Term. Except for the
        fact that the Company at all times shall provide Employee with all or at
        least a
        portion of Employee’s medical and/or hospitalization insurance, which shall not
        be less than that afforded to the Company’s other executive officers, nothing in
        this Agreement shall limit (i) the Company’s ability to exercise the discretion
        provided to it under any such benefit plan, or (ii) the Company’s discretion to
        adopt, not adopt, amend or terminate any such benefit plan at any
        time.

      

      (b)  Employee
        shall be entitled to four (4) weeks vacation leave for each year of the Term,
        as
        well as sick leave, medical insurance coverage and any other benefits consistent
        with the Company’s plans and policies in effect for the Company’s executives
        from time to time. The Company may modify in its sole and absolute discretion
        such benefits from time to time as it considers necessary or appropriate.
        Up to
        two (2) weeks of Employee’s vacation may be carried forward to the following
        year, and Employee acknowledges and agrees that any accrued vacation earned
        by
        Employee in excess of such amount shall be extinguished on the Effective
        Date.

      

      (c)
         During
        the Term, Employee shall be reimbursed for reasonable expenses that are
        authorized by the Company and that are incurred by Employee for the benefit
        of
        the Company in accordance with the standard reimbursement practices of the
        Company. Any direct payment or reimbursement of expenses shall be made only
        upon
        presentation of an itemized accounting conforming in form and content to
        standards prescribed by the IRS relative to the substantiation of the
        deductibility of business expenses.

       

      (d)
         During
        the Term, the Company shall reimburse Employee for all expenses Employee
        incurs
        in connection with his use of a cellular telephone or smart-phone as provided
        to
        all other executive officers of the Company.

      

      (e)
         During
        the Term, the Company shall provide Employee $400.00 per month, as compensation
        for Employee’s cost of ownership or leasing of a vehicle to be used for Company
        purposes.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (f)
         Any
        payments which the Company shall make to Employee pursuant to this Agreement
        shall be reduced by standard withholding and other applicable payroll
        deductions, including, without limitation, federal, state or local income
        or
        other taxes, social security and medicare taxes, state unemployment insurance
        deductions, state disability insurance deductions, and any other applicable
        tax
        or deduction (collectively, any withheld taxes and deductions,
“Deductions”).

       

      13.
         Confidentiality.

      

      (a)
         Employee
        hereby warrants, covenants and agrees that, without the prior express written
        consent of the Company, and unless required by law, court order or similar
        process, Employee shall hold in the strictest confidence, and shall not disclose
        to any person, firm, corporation or other entity, any and all of the Company’s
        information, including, for example, and without limitation, any data related
        to
        (i) drawings, sketches, plans or other documents concerning the Company’s
        business or development plans, customers or suppliers, and research and
        development efforts; (ii) the Company’s development, design, construction or
        sales and marketing methods or techniques; or (iii) the Company’s trade secrets
        and other “know-how” or information not of a public nature, regardless of how
        such information came to the custody of Employee (collectively, subsections
        (i),
        (ii) and (iii) of this Section 13(a), “Information”). For purposes of this
        Agreement, such Information shall include, but not be limited to, any
        information regarding a formula, pattern, compilation, program, device, method,
        technique or process that (A) derives independent economic value, present
        or
        potential, not being generally known to, and not being readily ascertainable
        by
        proper means by, other persons who can obtain economic value from its disclosure
        or use, and (B) is the subject of Company efforts.

      

      (b)  In
        the
        event Employee is required by law, court order or similar process to disclose
        any Information, Employee shall provide immediate notice of such obligatory
        disclosure prior to such disclosure, so that the Company, at its sole option,
        may attempt to seek a protective order or other appropriate remedy to preclude
        such disclosure.

       

         (c)
         The
        warranty, covenant and agreement set forth in this Section 13 shall not expire,
        shall survive this Agreement, and shall be binding upon Employee without
        regard
        to the passage of time or any other event.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      14.
         Non-Compete.
        Employee acknowledges and recognizes the highly competitive nature of the
        Company’s business and that Employee’s duties hereunder justify restricting
        Employee’s further employment following any termination of employment. Employee
        further acknowledges and understands that the Company recognizes Employee’s
        importance and value to the Company and thus has provided Employee with the
        overall compensation package described hereunder in order to induce Employee
        to
        enter into this Agreement. Accordingly, Employee agrees that so long as Employee
        is employed by the Company, and (i) for a period of two (2) years following
        the
        termination of this Agreement, Employee shall not induce or attempt to induce
        any employee of the Company to leave the employ of the Company, or in any
        way
        interfere with the relationship between the Company and any other employee;
        (ii)
        for a period of one (1) year following the termination of this Agreement,
        Employee, except when acting at the request of the Company on behalf of or
        for
        the benefit of the Company, shall not induce customers, agents or other sources
        of distribution of the Company’s business under contract or doing business with
        the Company to terminate, reduce, alter or divert business with or from the
        Company; and (iii) for a period of one (1) year following the termination
        of
        this Agreement, Employee shall not, directly or indirectly, either as a
        principal, agent, employee, employer, consultant, partner, member or manager
        of
        a limited liability company, shareholder of a company that does not have
        securities registered under the Securities Exchange Act of 1934 (the “1934
        Act”), or a shareholder in excess of one (1%) percent of a company that has
        securities registered under the 1934 Act, corporate officer or director,
        or in
        any other individual or representative capacity, engage or otherwise participate
        in any manner or fashion in any business that directly competes with the
        business activities of the Company in or about any market in which the Company
        is, or has publicly announced a plan for doing business. Employee further
        covenants and agrees that the restrictive covenant set forth in this paragraph
        is reasonable as to duration, terms, and geographical area and that the same
        protects the legitimate interests of the Company, imposes no undue hardship
        on
        Employee, and is not injurious to the public. The covenant set forth under
        (ii)
        above shall not apply if Employee’s employment is terminated within twelve (12)
        months of a Change in Control. Ownership by Employee, for investment purposes
        only, of less than one (1%) percent of any class of securities of a corporation
        if said securities are listed on a national securities exchange or registered
        under the 1934 Act shall not constitute a breach of the covenant set forth
        under
        (ii) above. It is the desire and intent of the Parties that the provisions
        of
        this paragraph be enforced to the fullest extent permissible under the laws
        and
        public policies applied in each jurisdiction in which enforcement is sought.
        Accordingly, if any particular portion of this paragraph shall be adjudicated
        to
        be invalid or enforceable, this paragraph shall be deemed amended to apply
        in
        the broadest allowable manner and to delete therefrom the portion adjudicated
        to
        be invalid or unenforceable, such amendment and deletion to apply only with
        respect to the operation of this paragraph in the particular jurisdiction
        in
        which that adjudication is made.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       15.  Termination.

       

         (a)  If
        Employee’s employment is terminated by the Company without Cause, or if Employee
        terminates his employment for Reasonable Basis (as defined below), then the
        Company shall, in exchange for Employee’s execution of a general release and
        waiver of claims against the Company as of the termination date in a form
        reasonably acceptable to the Company, continue to pay as severance Employee’s
        Base Salary for a period of twelve (12) months following the date such general
        release and waiver of claims is executed. Such payments shall be made in
        accordance with the Company’s customary payroll practices, and shall be subject
        to all applicable Deductions. In the event of any such termination set forth
        in
        this Section 15(a), Employee will not be entitled to any additional cash
        compensation or benefits beyond what is provided in the first sentence of
        this
        Section 15(a); provided,
        however,
        that in
        the event any termination set forth in this Section 15(a) shall occur during
        either 2007, 2008, or 2009, Employee shall continue to be entitled to receive
        a
        DPP Cash Bonus for the year of termination (in accordance with the calculation
        and timing of payment procedures set forth in Section 6(c) hereof), which
        DPP
        Cash Bonus, if any, shall be prorated based upon the length of time Employee
        was
        employed by the Company during the year of termination in the following manner:
        (w) if Employee was employed by the Company through the end of the Company’s
        third fiscal quarter, the Company shall pay Employee the full DPP Cash Bonus,
        if
        any, for such year; (x) if Employee was employed by the Company through the
        end
        of the Company’s second fiscal quarter, but Employee’s employment with the
        Company terminated prior to the end of the Company’s third fiscal quarter, the
        Company shall pay Employee ninety (90%) percent of the DPP Cash Bonus, if
        any,
        for such year; (y) if Employee was employed by the Company through the end
        of
        the Company’s first fiscal quarter, but Employee’s employment with the Company
        terminates prior to the end of the Company’s second fiscal quarter, the Company
        shall pay Employee sixty (60%) percent of the DPP Cash Bonus, if any, for
        such
        year; and (z) if Employee’s employment with the Company terminates prior to the
        end of the Company’s first fiscal quarter, the Company shall pay Employee thirty
        (30%) of the DPP Cash Bonus, if any, for such year.

       

          (i)  For
        purposes of this Agreement, “Cause” shall mean that the Board, acting in good
        faith based upon the information then known to the Company, determines that
        Employee has engaged in or committed any of the following: (A) willful
        misconduct, gross negligence, theft, fraud, or other illegal conduct; (B)
        refusal or unwillingness to perform Employee’s duties; (C) performance by
        Employee of Employee’s duties determined by the Board to be inadequate in a
        material respect; (D) breach of any applicable non-competition provision,
        confidentiality provision or other proprietary information or inventions
        agreement between Employee and the Company; (E) inappropriate conflict of
        interest; (F) insubordination; (G) failure to follow the directions of the
        Board
        or any committee thereof; (H) any other material breach of this Agreement.
        In
        addition, an indictment or conviction of any felony, or any entry of a plea
        of
        nolo contendre, under the laws of the United States or any State shall be
        considered “Cause” hereunder. “Cause” shall be specified in a notice of
        termination to be delivered by the Company to Employee no later than the
        date as
        of which termination is effective. 

        

      (ii)  For
        purposes of this Agreement, “Reasonable Basis” shall mean (A) a material breach
        of this Agreement by the Company, provided, however, that Employee shall
        provide
        written notice to the Company of any alleged material breach, and any alleged
        material breach will only be considered a material breach if the Company
        fails
        to cure such breach within thirty days after receiving notice of such breach;
        (B) termination of Employee’s employment by the Company without Cause during the
        term hereof; (C) a reduction in Employee’s salary, except to the extent that a
        majority of the other executive officers of the Company incur reductions
        of
        salary that average no less than the percentage reduction incurred by Employee;
        or (D) termination of Employee’s employment by Employee within six (6) months
        after a “Change Of Control,” which is defined as any of the
        following:

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (1)  any
        consolidation or merger of the Company in which the Company is not the
        continuing or surviving corporation, other than a merger of the Company in
        which
        the holders of the Company’s voting common stock immediately prior to the merger
        own a majority of the voting common stock of the surviving corporation
        immediately after the merger;

       

      (2)  any
        sale,
        lease, exchange or other transfer (in one transaction or a series of related
        transactions) of all or substantially all the assets of the
        Company;

       

      (3)  any
        approval by the stockholders of the Company of any plan or proposal for the
        liquidation or dissolution of the Company;

       

      (4)  the
        acquisition by any person or entity, or any group of persons and/or entities
        of
        a majority of the stock entitled to elect a majority of the directors of
        the
        Company; or

       

      (5)  subject
        to applicable law, in a Chapter 11 bankruptcy proceeding, the appointment
        of a
        trustee or the conversion of a case involving the Company to a case under
        a
        Chapter 7 bankruptcy proceeding.

       

         (b)  In
        the
        event that Employee’s employment with the Company is terminated for Cause, by
        reason of Employee’s death or disability, or due to Employee’s resignation or
        voluntary termination (other than for a Reasonable Basis), then all compensation
        (including, without limitation, any Base Salary, and the right to receive
        DPP
        Bonus Shares, DPP Cash Bonuses, and discretionary Cash Bonuses) and benefits,
        and the vesting of any unvested Restricted Base Shares or Restricted Options,
        will cease as of the effective date of such termination, and Employee shall
        receive no severance benefits, or any other compensation; provided that Employee
        shall be entitled to receive all compensation earned and all benefits and
        reimbursements due through the effective date of termination.

        

      (c)  Employee
        agrees that the payments contemplated by this Agreement shall constitute
        the
        exclusive and sole remedy for any termination of employment, and Employee
        covenants not to assert or pursue any other remedies, at law or in equity,
        with
        respect to any termination of employment.

       

         (d)  Any
        Party
        terminating this Agreement shall give prompt written notice to the other
        Party
        hereto advising such other Party of the termination of this Agreement stating
        in
        reasonable detail the basis for such termination (the “Notice of Termination”).
        The Notice of Termination shall indicate whether termination is being made
        for
        Cause (if the Company has terminated the Agreement) or for a Reasonable Basis
        (if Employee has terminated the Agreement).

       

      16.  Remedies.
        If
        there is a breach or threatened breach of any provision of Section 13 or
        Section
        14 of this Agreement, the Company will suffer irreparable harm and shall
        be
        entitled to an injunction restraining Employee from such breach. Nothing
        herein
        shall be construed as prohibiting the Company from pursuing any other remedies
        for such breach or threatened breach.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      17.  Severability.
        It is
        the clear intention of the Parties to this Agreement that no term, provision
        or
        clause of this Agreement shall be deemed to be invalid, illegal or unenforceable
        in any respect, unless such term, provision or clause cannot be otherwise
        construed, interpreted, or modified to give effect to the intent of the Parties
        and to be valid, legal or enforceable. The Parties specifically charge the
        trier
        of fact to give effect to the intent of the Parties, even if in doing so,
        invalidation of a specific provision of this Agreement is required to make
        the
        Agreement consistent with the foregoing stated intent. In the event that
        a term,
        provision, or clause cannot be so construed, interpreted or modified, the
        validity, legality and enforceability of the remaining provisions contained
        herein and other application(s) thereof shall not in any way be affected
        or
        impaired thereby and shall remain in full force and effect.

      
18.  Waiver
        of Breach.
        The
        waiver by the Company or Employee of the breach of any provision of this
        Agreement by the other Party shall not operate or be construed as a waiver
        of
        any subsequent breach by that Party.

       

      19.  Entire
        Agreement.
        This
        document contains the entire agreement between the Parties and supersedes
        all
        prior oral or written agreements, if any, concerning the subject matter hereof
        (including, without limitation, that certain Employment Agreement, dated
        as of
        May 5, 2004, between the Company and Employee) or otherwise concerning
        Employee’s employment by the Company (except for options to purchase shares of
        the Company’s restricted stock previously granted to Employee). This Agreement
        may not be changed orally, but only by a written agreement signed by both
        Parties.

       

      20.  Governing
        Law.
        This
        Agreement, its validity, interpretation and enforcement, shall be governed
        by
        the laws of the State of New York, excluding conflict of laws principles.
        Employee hereby expressly consents to personal jurisdiction in the state
        and
        federal courts located in Long Island, NY for any lawsuit filed there against
        him by the Company arising from or relating to this Agreement.

        

      21.  Notices.
        Any
        notice pursuant to this Agreement shall be validly given or served if that
        notice is made in writing and delivered personally or sent by certified mail
        or
        registered, return receipt requested, postage prepaid, to the following
        addresses:

       

      If
        to
        Company:   Chembio
        Diagnostics, Inc.

      3661
        Horseblock Road, Suite A

      Medford,
        NY 11763

      Attention:
        President

      

      If
        to
        Employee:  To
        the
        address for Employee set forth below his signature.

       

      All
        notices so given shall be deemed effective upon personal delivery or, if
        sent by
        certified or registered mail, five business days after date of mailing. Either
        Party, by notice so given, may change the address to which his or its future
        notices shall be sent.

       

      
        
           

        

        
          14

          
            

          

        

        
           
22.  Assignment
          and Binding Effect.
          This
          Agreement shall be binding upon Employee and the Company and shall benefit
          the
          Company and its successors and assigns. This Agreement shall not be assignable
          by Employee.

      

       

      23.  Headings.
        The
        headings in this Agreement are for convenience only; they form no part of
        this
        Agreement and shall not affect its interpretation.

       

      24.  Construction.
        Employee represents he has (a) read and completely understands this Agreement
        and (b) had an opportunity to consult with such legal and other advisers
        as he
        has desired in connection with this Agreement. This Agreement shall not be
        construed against any one of the Parties.

       

      25.  Insurance.
        The
        Company is to maintain directors’ and officers’ insurance in an amount
        reasonably determined by the Board.

      

      IN
        WITNESS WHEREOF,
        the
        Parties have caused this Agreement to be executed the day and year first
        above
        written.

      

      

       

      Employee:      Company:

      
 

      Chembio
        Diagnostics, Inc.

       

      

      ___________________________
           By:
        ___________________________

      Javan
        Esfandiari, Individually    Lawrence
        A. Siebert, President

      1
        Bowen
        Place

      Stonybrook,
        NY 11790

       

      
        
           

        

        
          15

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