Document:

Exhibit 10.38

EMPLOYMENT AGREEMENT 

 

This EMPLOYMENT AGREEMENT (the “Agreement”)
is made as of the 4th day February 2014, by and between Albany Molecular Research, Inc., a Delaware corporation (the “Company”),
and Christopher M. Conway (the “Executive”).

 

WHEREAS, the Executive is a key employee
of the Company;

 

WHEREAS, the parties hereto desire to assure
that the Executive’s knowledge and familiarity with the business of the Company will continue to be available to the Company
after the date hereof; and

 

NOW, THEREFORE, in consideration of the
mutual promises and covenants herein contained, the parties agree as follows:

 

1.       Employment.
Subject to the provisions of this Agreement, the Company hereby employs the Executive and the Executive accepts such employment
upon the terms and conditions hereinafter set forth.

 

2.       Term
of Employment. The term of the Executive’s employment pursuant to this Agreement shall commence on and as of the date
hereof (the “Effective Date”) and shall remain in effect for a period of two (2) years from the Effective Date (the
“Term”). The Term shall be renewed automatically for periods of two (2) years (each a “Renewal Term”) commencing
at the second anniversary of the Effective Date and on each subsequent second anniversary thereafter, unless notice that this Agreement
will not be extended is given by either the Executive or the Company not less than one-hundred (180) days prior to the expiration
of the Term (as extended by any Renewal Term). The period during which the Executive serves as an employee of the Company in accordance
with and subject to the provisions of this Agreement is referred to in this Agreement as the “Term of Employment.”

 

3.       Capacity.

 

(a)       Duties.
During the Term of Employment, the Executive shall report directly to the Senior Vice President, Sales and General Manager, API
or any other person designated by the President and Chief Executive Officer and (i) shall serve as an Executive of the Company
with the title Vice President, Sales and Marketing (ii) shall perform such duties and responsibilities as may be reasonably determined
by Chairman, President and Chief Executive Officer or his designate, consistent with the Executive’s title and position,
duties and responsibilities as an employee of the Company as of the Effective Date; provided that such duties and responsibilities
shall be within the general area of the Executive’s experience and skills, and (iii) shall render all services incident to
the foregoing.

 

(b)       Extent
of Service. The Executive agrees to diligently serve the interests of the Company and shall devote substantially all of his
working time, attention, skill and energies to the advancement of the interests of the Company and its subsidiaries and affiliates
and the performance of his duties and responsibilities hereunder; provided that nothing in this Agreement shall be construed as
preventing the Executive from (i) investing the Executive’s assets in any entity in a manner not prohibited by Section 7
and in such form or manner as shall not require any material activities on the Executive’s part in connection with the operations
or affairs of the entities in which such investments are made, or (ii) engaging in religious, charitable or other community or
non-profit activities that do not impair the Executive’s ability to fulfill the Executive’s duties and responsibilities
under this Agreement.

 

     

     

    

 

4.       Compensation.

 

(a)       Salary.
During the Term of Employment, the Company shall pay the Executive a salary (the “Base Salary”) at an annual rate as
shall be determined from time to time by the Chairman, President and Chief Executive Officer or other appropriate person of the
Company consistent with the general policies and practices of the company; provided, however, that in no event shall such rate
per annum be less than $250,000. Such salary shall be subject to withholding under applicable law and shall be payable in periodic
installments in accordance with the Company’s usual practice for its senior executives, as in effect from time to time.

 

(b)       Bonus.
Annually, the Company shall review the performance of the Company and of the Executive during the prior year, and the Company may
provide the Executive with additional compensation as a bonus in accordance with any bonus plan then in effect from time to time
for senior executives of the Company. Any such bonus plan shall have such terms as may be established in the sole discretion of
the Board of Directors of the Company or the Compensation Committee of the Board of Directors.

 

5.       Benefits.

 

(a)       Regular
Benefits. During the Term of Employment, the Executive shall be entitled to participate in any and all medical, dental, pension
and life insurance plans, disability income plans and other employee benefit plans as in effect from time to time for senior executives
of the Company. Such participation shall be subject to (i) the terms of the applicable plan documents, (ii) generally applicable
policies of the Company and (iii) the discretion of the Board of Directors of the Company or the administrative or other committee
provided for in, or contemplated by, such plan. Compliance with this Section 5(a) shall in no way create or be deemed to create
any obligation, express or implied, on the part of the Company or any subsidiary or affiliate of the Company with respect to the
continuation of any benefit or other plan or arrangement maintained as of or prior to the Effective Date or the creation and maintenance
of any particular benefit or other plan or arrangement at any time after the Effective Date.

 

(b)       Reimbursement
of Expenses. The Company shall promptly reimburse the Executive for all reasonable business expenses incurred by the Executive
during the Term of Employment in accordance with the Company’s practices for employees of the Company, as in effect from
time to time.

 

(c)       Vacation.
During the Term of Employment, the Executive shall receive paid vacation annually in accordance with the Company’s practices
for senior executives of the Company, as in effect from time to time.

 

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6.       Termination
of Employment. Notwithstanding the provisions of Section 2, the Executive’s employment under this Agreement shall terminate
under the following circumstances set forth in this Section 6.

 

For purposes of this Agreement, “Date
of Termination” means (i) if the Executive’s employment is terminated by his death as provided in Section 6(c), the
date of his death; (ii) if the Executive’s employment is terminated due to his permanent disability as provided in Section
6(c), the date on which notice of termination is given; (iii) if the Executive’s employment is terminated by the Company
without Cause under Section 6(e) or Section 6(g), sixty (60) days after the date on which notice of termination is given; and (iv)
if the Executive’s employment is terminated under Section 6(f) or for Good Reason under Section 6(g), the date on which the
applicable cure period expires.

 

(a)       Mutual
Consent. The Executive’s employment under this Agreement may be terminated at any time by the mutual consent of the Executive
and the Company on such terms as both parties shall mutually agree.

 

(b)       Termination
by the Company for Cause. The Executive’s employment under this Agreement may be terminated by the Company for “Cause”
at any time upon written notice to the Executive without further liability on the part of the Company. For purposes of this Agreement,
a termination shall be for “Cause” if:

 

(i)       the
Executive shall commit an act of fraud, embezzlement, misappropriation or breach of fiduciary duty against the Company or any of
its subsidiaries or affiliates or shall be convicted by a court of competent jurisdiction or shall plead guilty or nolo contendere
to any felony or any crime involving moral turpitude;

 

(ii)       the
Executive shall commit a material breach of any of the covenants, terms or provisions of Section 7 or 8 hereof which breach has
not been cured within fifteen (15) days after delivery to the Executive by the Company of written notice thereof;

 

(iii)       the
Executive shall commit a material breach of any of the covenants, terms or provisions hereof (other than pursuant to Section 7
or 8 hereof) which breach has not been remedied within thirty (30) days after delivery to the Executive by the Company of written
notice thereof; or

 

(iv)       the
Executive shall have disobeyed reasonable written instructions from the Senior Vice President Sales, and General Manager, API or
the President and Chief Executive Officer, or other appropriate governing committee which are consistent with the terms and conditions
of this Agreement or shall have deliberately, willfully, substantially and continuously failed to perform the Executive’s
duties hereunder, after written notice and under circumstances effectively constituting a voluntary resignation of the Executive’s
position with the Company.

 

Upon termination for Cause as provided in
this Section 6(b), all obligations of the Company under this Agreement shall thereupon immediately terminate other than any obligations
with respect to earned but unpaid Base Salary and the Company shall have any and all rights and remedies under this Agreement and
applicable law.

 

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(c)       Death;
Disability. The Executive’s employment under this Agreement may be terminated by the Company upon the earlier of death
or permanent disability (as defined below) of the Executive continuing for a period of one hundred eighty (180) days. Upon any
such termination of the Executive’s employment, all obligations of the Company under this Agreement shall thereupon immediately
terminate other than any obligations with respect to (i) earned but unpaid salary through the Date of Termination, (ii) bonus payments
with respect to the calendar year within which such termination occurred on the basis of and to the extent contemplated in any
bonus plan then in effect with respect to senior executive officers of the Company, pro-rated on the basis of the number of days
of the Executive’s actual employment hereunder during such calendar year through the Date of Termination, and (iii) in the
case of permanent disability, continuation at the Company’s expense of health insurance benefits (medical and dental) until
the first anniversary of the Date of Termination to the extent permitted under the Company’s group health insurance policy.
As used herein, the term “permanent disability” or “permanently disabled” means the inability of the Executive,
by reason of injury, illness or other similar cause, to perform a major part of his duties and responsibilities in connection with
the conduct of the business and affairs of the Company. The Company shall provide written notice to the Executive of the termination
of his employment hereunder due to permanent disability.

 

(d)       Voluntary
Termination by the Executive. At any time during the Term of Employment, the Executive may terminate his employment under this
Agreement upon sixty (60) days’ prior written notice to the Company. Upon termination by the Executive as provided in this
Section 6(d), all obligations of the Company under this Agreement shall thereupon immediately terminate.

 

(e)       Termination
by the Company Without Cause. The Executive’s employment under this Agreement may be terminated by the Company at any
time without “Cause” (as defined in Section 6(b)) by the Company upon sixty (60) days’ prior written notice to
the Executive. Any termination by the Company of the Executive’s employment under this Agreement which does not constitute
a termination for Cause under Section 6(b) and is not a termination on account of death or disability under Section 6(c) shall
be deemed a termination without Cause. Upon any such termination of the Executive’s employment, all obligations of the Company
under this Agreement shall thereupon immediately terminate other than any obligations with respect to earned but unpaid Base Salary
and bonus under Section 4. In addition, subject to the Executive signing a general release of claims in a form and manner satisfactory
to the Company and the lapse of any statutory revocation period, the Company shall continue to pay the Executive his Base Salary
at the rate then in effect pursuant to Section 4(a) for a period of twelve (12) months from the Date of Termination and shall pay
to the Executive in monthly installments over the year, an amount equal to the Executive’s cash bonus, if any, received in
respect of the immediately preceding year pursuant to Section 4(b) beginning with the first payroll date that begins thirty (30)
days after the Date of Termination. For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
each monthly payment shall be considered a separate payment. The Company shall also pay 100% of the costs to provide up to twelve
(12) months of outplacement support services at a level appropriate for the Executive’s title and responsibility and provide
the Executive with health and dental insurance continuation at a level consistent with the level and type the executive had in
place at the time of termination for a period of twelve (12) months from the Date of Termination. The twelve months shall be considered
the first twelve months of the executive’s (18) month COBRA eligibility period. Upon completion of the twelve months, the
executive shall have (6) further months of COBRA eligibility for which he will have sole responsibility for making appropriate
premium payments in order to continue coverage that he is eligible for under COBRA provisions.

 

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(f)       Termination
by the Executive upon Company Breach. The Executive shall have the right to terminate his employment hereunder upon written
notice to the Company in the event of (i) a material diminution in the nature or scope of the powers, duties or responsibilities
of the Executive or (ii) a breach by the Company of any of its material obligations hereunder, in each case after the Executive
has given written notice to the Company specifying such default by the Company, within sixty (60) days of the occurrence of the
default, and giving the Company a reasonable time, not less than thirty (30) days, to conform its performance to its obligations
hereunder. Upon any such termination of the Executive’s employment, all obligations of the Company under this Agreement shall
thereupon immediately terminate other than any obligations with respect to earned but unpaid Base Salary and bonus under Section
4. In addition, subject to the Executive signing a general release of claims in a form and manner satisfactory to the Company and
the lapse of any statutory revocation period, the Company shall continue to pay the Executive his Base Salary at the rate then
in effect pursuant to Section 4(a) for a period of twelve (12) months from the Date of Termination and shall pay to the Executive
in monthly installments over the next year, an amount equal to the Executive’s cash bonus, if any, received in respect of
the immediately preceding year pursuant to Section 4(b) beginning with the first payroll date that begins thirty (30) days after
the Date of Termination. For purposes of Section 409A of the Code, each monthly payment shall be considered a separate payment.
The Company shall also pay 100% of the costs to provide up to twelve (12) months of outplacement support services at a level appropriate
for the Executive’s title and responsibility and provide the Executive with health and dental insurance continuation at a
level consistent with the level and type the Executive had in place at the time of termination for a period of twelve (12) months
from the Date of Termination.

 

(g)       Termination
Pursuant to a Change of Control. If there is a Change of Control, as defined below, during the Term of Employment, the provisions
of this Section 6(g) shall apply and shall continue to apply throughout the remainder of the Term (as extended by any Renewal Term).
Upon a Change of Control, the Executive will become fully vested in any outstanding stock options, Restricted Stock or other stock
grants awarded and become fully vested in all Company contributions made to the executive’s 401(k), Profit Sharing or other
retirement account (s). In addition, within thirty (30) days of the Change of Control, the Company shall pay to the Executive a
lump sum equal to the Executive’s pro rata target cash bonus for the year in which the Change of Control occurred (as such
may be set forth in the Company’s bonus plan for such year and calculated assuming target achievement of corporate and personal
goals); such pro rata amount to be determined based on the actual date of the closing of such Change in Control transaction.

 

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If, within two (2) years following a Change
of Control, the Executive’s employment is terminated by the Company without Cause (in accordance with Section 6(e) above)
or by the Executive for “Good Reason” (as defined in Section 6(g)(ii) below), in lieu of any severance and other benefits
payable under Section 6(e) or Section 6(f), subject to the Executive signing a general release of claims in a form and manner satisfactory
to the Company and the lapse of any statutory revocation period, the Company shall pay to the Executive (or the Executive’s
estate, if applicable) a lump sum amount equal to 1.5 times the sum of (x) the Executive’s Base Salary at the rate then in
effect pursuant to Section 4(a), plus (y) an amount equal to the Executive’s cash bonus, if any, received in respect of the
immediately preceding year pursuant to Section 4(b) within thirty (30) days of the Date of Termination. Notwithstanding the foregoing,
to the extent the cash severance payment to the Executive is considered deferred compensation subject to Section 409A of the Code,
and if the Change of Control does not constitute a “change in control event” within the meaning of Section 409A of
the Code, such cash severance shall be payable in installments over the same period as provided in Section 6(e). The Company shall
also pay 100% of the costs to provide up to twelve (12) months of outplacement support services at a level appropriate for the
Executive’s title and responsibility and provide the Executive with health and dental insurance continuation at a level consistent
with the level and type the Executive had in place at the time of termination for a period of twelve (12) months from the Date
of Termination.

 

(i)       “Change
of Control” shall mean the occurrence of any one of the following events: (A) the sale of all or substantially all of the
assets of the Company on a consolidated basis to an unrelated person or entity, (B) a merger, reorganization or consolidation in
which the outstanding shares of Stock are converted into or exchanged for securities of the successor entity and the holders of
the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting
power of the successor entity immediately upon completion of such transaction, or (C) the sale of all of the Stock of the Company
to an unrelated person or entity.

 

(ii)       “Good
Reason” shall mean the occurrence of any of the following:

 

(A)       a
material or diminution in the nature or scope of the powers, functions, titles, duties or responsibilities of the Executive that
is adverse to the Executive;

 

(B)       a
breach by the Company of any of its material obligations hereunder; or

 

(C)       the
relocation of the offices at which the Executive is principally employed as of the Change of Control to a location more than fifty
(50) miles from such offices, which relocation is not approved by the Executive.

 

The Executive shall provide the Company with
reasonable notice and an opportunity to cure any of the events listed in this Section 6(g)(ii) within sixty (60) days of the occurrence
of the event and shall not be entitled to compensation pursuant to this Section 6(g) unless the Company fails to cure within a
reasonable period of not less than thirty (30) days; and

 

(iii)       Additional
Limitation. Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment
or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable
regulations thereunder (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the
Code, the following provisions shall apply:

 

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(A)       If
the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and
employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount,
are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full amount of Severance Payments.

 

(B)       If
the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of
(1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Severance
Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not below zero) to the
extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount. In such event, the Severance
Payments shall be reduced in the following order: (i) cash payments not subject to Section 409A of the Code; (ii) cash payments
subject to Section 409A of the Code; (iii) equity-based payments and acceleration; and (iv) non-cash forms of benefits. To the
extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological
order.

 

For the purposes of this Section 6(g)(iii),
“Threshold Amount” shall mean three (3) times the Executive’s “base amount” within the meaning of
Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax”
shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive with respect
to such excise tax.

 

The determination as to which of the alternative
provisions of this Section 6(g)(iii) shall apply to the Executive shall be made by a nationally recognized accounting firm selected
by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and
the Executive within fifteen (15) business days of the Date of Termination, if applicable, or at such earlier time as is reasonably
requested by the Company or the Executive. For purposes of determining which of the alternative provisions of this Section 6(g)(iii)
above shall apply, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation
applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the
highest marginal rates of individual taxation in the state and locality of the Executive’s residence on the Date of Termination,
net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. Any
determination by the Accounting Firm shall be binding upon the Company and the Executive.

 

(h)       No
Mitigation. Without regard to the reason for the termination of the Executive’s employment hereunder, the Executive shall
be under no obligation to mitigate damages with respect to such termination under any circumstances and in the event the Executive
is employed or receives income from any other source, there shall be no offset against the amounts due from the Company hereunder.

 

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(i)       Section
409A.

 

(i)       Anything
in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning
of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the meaning
of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under
this Agreement would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a)
of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such
benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation
from service, or (B) the Executive’s death. If any such delayed cash payment is otherwise payable on an installment basis,
the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period
but for the application of this provision, and the balance of the installments shall be payable in accordance with their original
schedule. Any such delayed cash payment shall earn interest at an annual rate equal to the prime rate reported by The Wall Street
Journal as of the date of separation from service, from such date of separation from service until the payment.

 

(ii)       The
parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner
so that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as reasonably
requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations
in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(iii)       To
the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination
of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.”
The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions
set forth in Treasury Regulation Section 1.409A-1(h).

 

(iv)       The
Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an
exemption from, or the conditions of, such Section.

 

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7.       Non-Competition
and No Solicitation.

 

(a)       Because
the Executive’s services to the Company are special and because the Executive has access to the Company’s confidential
information, during the Term of Employment and for a period of twelve (12) months following the termination, the Employee shall
not, without the express written consent of the Company, directly or indirectly, engage, participate, invest in, be employed by
or assist, whether as owner, part-owner, shareholder, partner, director, officer, trustee, employee, agent or consultant, or in
any other capacity, any Person (as hereinafter defined) other than the Company and its affiliates in the Designated Industry (as
hereinafter defined); provided, however, that nothing herein shall be construed as preventing the Employee from making passive
investments in a Person in the Designated Industry if the securities of such Person are publicly traded and such investment constitutes
less than one percent (1%) of the outstanding shares of capital stock or comparable equity interests of such Person.

 

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

 

“Person” means an individual,
a corporation, an association, a partnership, a limited liability company, an estate, a trust and any other entity or organization;
and

 

“Designated Industry” means
the business of providing chemistry research and development services to pharmaceutical and biotechnology companies involved in
drug development and discovery and any and all activities related thereto, including, without limitation, medicinal chemistry,
chemical development, biocatalysis, analytical chemistry services and small-scale manufacturing, large scale manufacturing, and
any other business conducted by the Company during the Employee’s employment with the Company.

 

(c)       For
a period of twelve (12) months following the termination of this Agreement for any reason, the Executive shall not, directly or
indirectly, alone or as a member of any partnership or limited liability company or entity, or as an officer, director, shareholder,
or employee of any corporation or entity (a) solicit or otherwise encourage any employee or independent contractor of the Company
to terminate his/her relationship with the Company, or (b) recruit, hire or solicit for employment or for engagement as an independent
contractor, any person who is or was employed by the Company at any time during the Executive’s employment with the Company.
This paragraph shall not apply to persons whose employment and/or retention with the Company has been terminated for a period of
twelve (12) months or longer.

 

8.       Confidentiality.
In the course of performing services hereunder and otherwise, the Employee has had, and it is anticipated that the Employee will
from time to time have, access to confidential records, data, customer lists, trade secrets, technology and similar confidential
information owned or used in the course of business by the Company and its subsidiaries and affiliates (the “Confidential
Information”). The Executive agrees (i) to hold the Confidential Information in strict confidence, (ii) not to disclose the
Confidential Information to any Person (other than in the regular business of the Company), and (iii) not to use, directly or indirectly,
any of the Confidential Information for any competitive or commercial purpose; provided, however, that the limitations set forth
above shall not apply to any Confidential Information which (A) is then generally known to the public, (B) became or becomes generally
known to the public through no fault of the Executive, or (C) is disclosed in accordance with an order of a court of competent
jurisdiction or applicable law. Upon termination of the Executive’s employment with the Company, all data, memoranda, customer
lists, notes, programs and other papers and items, and reproductions thereof relating to the foregoing matters in the Executive’s
possession or control, shall be returned to the Company and remain in its possession. This Section 8 shall survive the termination
of this Agreement for any reason.

 

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9.       Conflicting
Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations
hereunder will not breach or be in conflict with any other agreement to which he is a party or is bound, and that he is not now
subject to any covenants which would affect the performance of his obligations hereunder. As of the Effective Date, the Executive
is not performing any other duties for, and is not a party to any similar agreement with, any Person competing with the Company
or any of its affiliates.

 

10.       Severability.
In case any of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, any such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but
this Agreement shall be construed as if such invalid, illegal or unenforceable provision had been limited or modified (consistent
with its general intent) to the extent necessary to make it valid, legal and enforceable, or if it shall not be possible to so
limit or modify such invalid, illegal or unenforceable provision or part of a provision, this Agreement shall be construed as if
such invalid, illegal or unenforceable provision or part of a provision had never been contained in this Agreement.

 

11.       Litigation
and Regulatory Cooperation. During and after the Executive’s employment, the Executive shall cooperate fully with the
Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or
on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company.
The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available
to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient
times. During and after the Executive’s employment, the Executive also shall cooperate fully with the Company in connection
with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates
to events or occurrences that transpired while the Executive was employed by the Company. The Company shall reimburse the Executive
for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance of obligations pursuant
to this Section 11. This Section 11 shall survive the termination of this Agreement for any reason.

 

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12.       Arbitration
of Disputes. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by
arbitration in Albany, New York, in accordance with the rules of the American Arbitration Association then in effect. Judgment
may be entered in any court having jurisdiction. In the event that the Company terminates the Executive’s employment for
cause under Section 6(b) and the Executive contends that cause did not exist, then the Company’s only obligation shall be
to submit such claim to arbitration and the only issue before the arbitrator will be whether the Executive was in fact terminated
for cause. If the arbitrator determines that the Executive was not terminated for cause by the Company, then the only remedies
that the arbitrator may award are (i) payment of amounts which would have been payable if the Executive’s employment had
been terminated under Section 6(e), (ii) the costs of arbitration, (iii) the Executive’s attorneys’ fees, and (iv)
all rights and benefits granted or in effect with respect to the Executive under the Company’s stock option plans and agreements
with the Executive pursuant thereto, with the vesting and exercise of any stock options and the forfeit ability of any stock-based
grants held by the Executive to be governed by the terms of such plans and the related agreements between the Executive and the
Company. If the arbitrator finds that the Executive’s employment was terminated for cause, the arbitrator will be without
authority to award the Executive anything, and the parties will each be responsible for their own attorneys’ fees, and they
will divide the costs of arbitration equally. Furthermore, should a dispute occur concerning the Executive’s mental or physical
capacity as described in Section 6(c), a doctor selected by the Executive and a doctor selected by the Company shall be entitled
to examine the Executive. If the opinion of the Company’s doctor and the Executive’s doctor conflict, the Company’s
doctor and the Executive’s doctor shall together agree upon a third doctor, whose opinion shall be binding. This Section
12 shall survive the termination of this Agreement for any reason.

 

13.       Specific
Performance. Notwithstanding Section 12 hereof, it is specifically understood and agreed that any breach of the provisions
of this Agreement, including, without limitation, Sections 7 and 8 hereof, by the Executive is likely to result in irreparable
injury to the Company and its subsidiaries and affiliates, that the remedy at law alone will be inadequate remedy for such breach
and that, in addition to any other remedy it may have, the Company shall be entitled to enforce the specific performance of this
Agreement by the Executive and to seek both temporary and permanent injunctive relief (to the extent permitted by law), without
the necessity of proving actual damages. To the extent that any court action is permitted consistent with or to enforce Section
7 or 8 of this Agreement, the parties hereby agree to the sole and exclusive jurisdiction of the Supreme Court of the State of
New York (Albany County) and the United States District Court for the Northern District of New York (City of Albany). Accordingly,
with respect to any such court action, the Executive (i) submits to the personal jurisdiction of such courts, (ii) consents to
service of process, and (iii) waives any other requirement (whether imposed by statute, rule of court or otherwise) with respect
to personal jurisdiction or service of process.

 

14.       Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
(i) when delivered by hand, (ii) when transmitted by facsimile and receipt is acknowledged, or (iii) if mailed by certified or
registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

 

To the Company:

 

Albany Molecular Research, Inc.

26 Corporate Circle

Albany, New York 12212-5098

Facsimile: (518) 512-2043

Attention: Board of Directors 

 

    	 	11	 

     

    

 

To the Executive, to the address on file with the Company.

 

or to such other address of which any party may notify the other
parties as provided above. Notices shall be effective as of the date of such delivery or mailing.

 

15.       Amendment;
Waiver. This Agreement shall not be amended, modified or discharged in whole or in part except by an Agreement in writing signed
by both of the parties hereto. The failure of either of the parties to require the performance of a term or obligation or to exercise
any right under this Agreement or the waiver of any breach hereunder shall not prevent subsequent enforcement of such term or obligation
or exercise of such right or the enforcement at any time of any other right hereunder or be deemed a waiver of any subsequent breach
of the provision so breached, or of any other breach hereunder.

 

16.       Successors
and Assigns. This Agreement shall inure to the benefit of successors of the Company by way of merger, consolidation or transfer
of all or substantially all of the assets of the Company, and may not be assigned by the Executive. The Company shall require any
successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be required
to perform it if no succession had taken place. Failure of the Company to obtain an assumption of this Agreement at or prior to
the effectiveness of any succession shall be a material breach of this Agreement.

 

17.       Entire
Agreement. This Agreement constitutes the entire agreement between the parties concerning the subjects hereof and supersedes
all prior understandings and agreements between the parties relating to the subject matter hereof.

 

18.       Governing
Law. This Agreement shall be construed and regulated in all respects under the laws of the State of New York.

 

19.       Counterparts.
This Agreement may be executed in counterparts, each of which when so executed and delivered shall be taken to be an original,
but such counterparts shall together constitute one and the same document.

 

[Remainder of Page Intentionally Left Blank]

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the day and year first above written.

 

	 	ALBANY MOLECULAR RESEARCH, INC.
	 	 
	 	 
	 	By:	/s/ Brian Russell	 
	 	 	 	 
	 	 	 	 
	 	EXECUTIVE:
	 	 
	 	 
	 	/s/ Christopher Conway	 
	 	Christopher M .Conway	 

 

 

 

 

    	 	13Exhibit
10.39

 

DIRECTORSHIP
AGREEMENT

 

By
and between:

 

Prime
European Therapeuticals S.P.A., with
registered office in Milan, Viale Bianca Maria, n. 25, Italian VAT registration number 07254610152, in person of Mariesa Beth
Coppola ("Euticals" or the "Company");

 

AMRI
Albany Molecular Research Inc., with registered office in 26
Corporate Circle, Albany, NY 12212, in person of Mariesa Beth Coppola ("AMRI");

-
on the one side -

 

and

 

Ms.
Margalit Fine, (the "Director"; together with the
Company and AMRI, the "Parties")

 

-on
the other side -

 

WHEREAS

 

		i.	On
                                         May 5, 2016 AMRI Inc. and Lauro Cinquantasette Spa with registered office in via del
                                         Lauro n. 7, Italian VAT registration number 04849340965 ("Lauro Cinquantasette"),have
                                         signed that certain Sale and Purchase Agreement ("SPA") for the purchase
                                         and sale of 100% of Euticals (the "Transaction") which is expected to be
                                         completed within July 11, 2016 (the "Closing Date");

 

		ii.	The
                                         Parties acknowledge that the Director has been the director and Managing Director of
                                         Euticals and Lauro Cinquantasette (the "Old Offices") until 5 July 2016,
                                         when she has given her resignations effective the date of the Transaction;

 

		iii.	Effective
                                         as of the Closing Date, the Parties desire that the Director shall vest the office of
                                         director and be appointed as Managing Director of Euticals and the Executive Vice President
                                         - API Business Unit of AMRI, reporting to the Chief Operating Officer of AMRI;

 

		iv.	The
                                         Director is willing to accept the appointments under point (iii) above, with the related
                                         powers that shall be delegated to her within such appointments on the terms and conditions
                                         set forth herein (the "Agreement").

 

*    *    *

 

In
consideration of the foregoing recitals, which form an integral and substantive part of this Agreement, the Parties agree as
follows.

 

		1.	Appointment

 

1.1.          Pursuant
to the provisions of the SPA, on the Closing Date, AMRI shall cause Eutical's parent company to appoint the Director as a director
of Euticals.

 

1.2.          Upon
such appointment, AMRI shall have Euticals' parent company to cause the competent corporate body of Euticals to resolve as
follows: (a) appoint the Director as managing director of Euticals; and (b) grant the Director with certain powers necessary
to perform her role as managing director of the Company and (c) appoint the Director as Executive Vice President of its API
Division (the aforementioned offices, present and/or future, within the Company shall be collectively referred to as the "Offices").
The powers to be granted with such appointment are listed in Annex 1; and are effective as of the date thereof.

 

    	 	1

     

    

 

1.3.          The
Parties hereby acknowledge and agree that, for the entire duration of this Agreement and the Offices, certain powers will be retained
to the exclusive competence Euticals' Board of Directors ("BOD") or granted to other members of the same BOD.
In particular, but not in limitation, the Parties agree that the powers and responsibilities of the Datore di Lavoro (as
contemplated in Italian Legislative Decree 81/2008 as amended), environmental Gestore, and responsibility for privacy /
treatment of personal data will be retained by BOD or be granted to other members of the BOD or to other persons.

 

1.4.           The
Director acknowledges that the powers set out in Annex 1 are suitable to allow her to manage the Company and undertakes to exercise
them in accordance with the guidelines of the BOD, the terms and conditions of this Agreement and the Company' By-laws, a copy
of which guidelines and By-laws the Company has provided to the Director.

 

1.5.           The
Director hereby undertakes to accept the Offices and hold them for the entire duration of this Agreement.

 

2.              Director's
Duties and Responsibilities

 

2.1.           For
the entire duration of this Agreement, the Director will have the duties of director and managing director of the Company and,
pursuant to Article 2392 of the Italian Civil Code ("ICC"), perform her duties as set forth by law and the Company's
By-laws using the diligence requested by the nature of her assignment and by her specific competence.

 

2.2.           The
Director, in her capacity as director and managing director of the Company, for the entire duration of this Agreement, will be
responsible for the business management and administration of the Company with reference to all managerial aspects in respect of
the powers granted and will act in compliance with the general and specific guidelines provided for by the Company's BOD and the
AMRI Chief Executive Officer and Chief Operating Officer as appointed by the parent company of the Company for the achievement
of the Company business objectives.

 

2.3.           The
Director will report to the AMRI Chief Operating Officer as appointed by the Company parent company and to the BOD, according to
law and at the BOD's requests.

 

3.              Remuneration,
expenses and benefits

 

3.1.           As
partial consideration under the Agreement for the Director's performance of the role of managing director of Euticals and all other
roles that she may be given in AMRI, including her role as Executive Vice President, API Division, the Manager shall receive an
aggregate annual base gross remuneration of EUR Three Hundred Fifty Thousand (Euro350K) (the "Base Gross Remuneration").
AMRI shall have Euticals' parent company to cause the competent corporate bodies of Euticals to resolve to make such payments
to the Director, for the whole duration of the Offices.

 

3.2.           The
Base Gross Remuneration will be paid, net of all fiscal and social security deductions, in 12 (twelve) monthly instalments of equal
amount, at the end of each relevant calendar month.

 

3.3.           The
Director shall also be eligible to receive a bonus, with reference to 2016 financial year, pursuant to Section 3.4 and the
terms indicated under Annex 2 (the "Bonus"). For all financial years of the Initial Term and the
Renewal Term after 2016, the Director shall be eligible to participate in the bonus program that may be made available to the
other executive officers of AMRI.

 

3.4.           The
Bonus will be paid, net of all fiscal and social security deductions, at the same time that all bonuses, if any, are paid to the
executive team of AMRI for financial year 2016, which is expected following completion of the annual financial audit and prior
to March 31, 2017.

 

3.5.           The
Director shall be granted by the competent corporate bodies of AMRI a certain number of Restricted Stock Units for shares in AMRI
("RSUs") as per the terms indicated under Annex 3.

 

    	 	2

     

    

 

3.6           The Director acknowledges and agree that the (i) Base Gross Remuneration, (ii) the Bonus (to the extent payable) and any other
bonus payable to the Director under any bonus program for which it she is eligible pursuant to Section 3.3, and the RSUs and any
other Restricted Stock Units, Stock Options or similar programs for which she may become eligible and be granted in AMRI's sole
discretion include any and all compensation regarding the Offices and any other offices that the Director may hold in the AMRI
group of companies, and for any activity that the Director may perform in favour of the Company or in favour of any other company
of such Group.

 

3.7.           The Director shall be entitled to receive by the Company the reimbursement of all costs and expenses borne
by reason of her Offices, in a manner consistent with Euticals' practice, provided that the Director will have submitted the relevant
documentary evidence of such expenses and costs. AMRI shall have Euticals' parent company to cause the competent corporate bodies
of each to resolve to make such reimbursements to the Director, for the whole duration of the Offices.

 

3.8           The Director shall be provided with fringe benefits, including a life insurance, a health insurance, and liability insurance coverage
in line with fringe benefits and insurances usually granted to directors of a comparable level and usually considered as reasonable
by companies of a size comparable to the size of Euticals, that are granted in accordance with the policies of the Company and
AMRI. It is agreed between the Parties that such fringe benefits will include: a full health insurance policy, whose annual cost
will up to Euro 5.000,00 gross; company credit card (to be used only for business purposes); cell phone with subscription; personal
computer with internet connection; office spaced in the company office in Lodi, with support of a personal assistant; reimbursement
of the annual fees and expenses of her tax advisor for the preparation of the annual tax report (dichiarazione dei redditi)
and for the preparation of the tax report to be filed immediately after the termination of this Agreement; and any other fringe
benefits the Director was receiving from Eutiicals in consideration of her carrying out the Old Offices. AMRI shall have Euticals'
parent company to cause the competent corporate body of Euticals to resolve to provide all the aforementioned fringe benefits to
the Director, for the whole duration of the Offices.

 

4.              Duration

 

4.1.           Subject
to the provisions of Section 7 hereof, the initial term of the Offices shall be for a period commencing on the appointment in accordance
with Section 1 and ending on the date of approval of the 2018 financial statements of Euticals (the "Initial Term").

 

4.2           Subject
to the provisions of Section 7 hereof, such term shall automatically renew for an additional one year period, as
further described below, unless either the Director or an authorized officer of the Company or AMRI provide to the other
Parties written notice of non-renewal on or before January 1, 2019. Such extension of the Initial Term shall be for a further
period lasting to the date of approval of the 2019 financial statements of Euticals under the terms and conditions of this
Directorship Agreement (the "Renewal Term"). In case of such renewal after the Initial Term, AMRI shall have
Euticals parent company to cause the competent corporate bodies of Euticals to confirm and renew the appointment of the
Director in her Office for the Renewal Term. For the sake of clarity, it remains understood that no Termination Indemnity (as
defined under Section 7 below) is due in case - for any reason - any of the Parties decides (and notifies the other Parties
of such decision) not to renew after the Initial Term.

 

4.3.           Without
prejudice to the Initial Term and Renewal Term of this Agreement, or Director's rights hereunder, the Parties acknowledge that
the duration of the Offices will be regulated by the relevant corporate resolutions.

 

5.              Non-solicitation
covenant

 

In
the course of performing services hereunder and for a period of twelve (12) months following the termination of the Offices for
any reason, the Director shall not, directly or indirectly, alone or as a member of any partnership or limited liability company
or entity, or as an officer, director, shareholder, or employee of any corporation or entity (a) solicit or otherwise encourage
any employee or independent contractor of the Company to terminate her or his relationship with the Company, or (b) recruit, hire
or solicit for employment or for engagement as an independent contractor, any person who is or was employed by the Company at any
time during the Offices with the Company. This paragraph shall not apply to persons whose employment and/or retention with the
Company has already been terminated at the time of the recruitment, hiring or solicitation.

 

    	 	3

     

    

 

6.            Confidentiality

 

6.1.         In
the course of performing services hereunder and otherwise in her role and activities under the Office and the Old Offices, the
Director has had, and will from time to time, have access to confidential records, data, customer lists, trade secrets, technology
and similar confidential information owned or used in the course of business by the Company and its subsidiaries and affiliates
(the "Confidential Information"). The Director agrees (i) to hold the Confidential Information in strict confidence,
(ii) not to disclose the Confidential Information to any person outside of the Company (other than in the regular business of the
Company), and (iii) not to use, directly or indirectly, any of the Confidential Information for any competitive or commercial purpose
outside of the commercial activities carried out for the Company; provided, however, that the limitations set forth above shall
not apply to any Confidential Information which (A) Director can demonstrate with timely documentation to have been known by her
without disclosure from the Company and/or any of their subsidiaries or affiliates, (B) is then generally known to the public,
(C) became or becomes generally known to the public through no fault of the Director, or (D) is disclosed in accordance with an
order of a court of competent jurisdiction or applicable law. Upon termination of the Offices for any reason, all data, memoranda,
customer lists, notes, programs and other papers and items, and reproductions thereof relating to the foregoing matters in the
Director's possession or control, shall be returned to Euticals and thereafter shall remain in the Company's possession. This Section
6 shall survive the termination of this Agreement for any reason.

 

7.            Termination

 

7.1.         In
case of occurrence of a Bad Leaver circumstance, (within the meaning indicated in Section 7.2 below) Euticals will be entitled
to immediately terminate this Agreement by providing written notice - with prior notice when required by applicable law - and to
revoke the Director from the Offices for just cause pursuant to Article 2383 of the ICC (if necessary). In this event, the Director
will be entitled to receive no remuneration and/or other indemnity and/or compensation by Euticals, exception made for the Base
Gross Remuneration due until the effective date of termination, without prejudice, however, to the Euticals right to any claim
for the damages suffered.

 

7.2.         Any
of the following circumstances will be considered as a case of "Bad Leaver":

 

7.2.1.           Director's
resignation from the Offices unless in case such resignation (i) has been requested - for other reasons than Just Cause - by the
Board of Directors of the Company or (ii) is grounded on material breach by the Company of any of its obligations.

 

7.2.2.           Without
prejudice to any mandatory or inderogable provisions of applicable law, the following shall be considered just cause of revocation
from the Offices ("Just Cause"):

 

(i)        the
Director is subject to an investigation, a trial and/or a plea-bargain for a felony, which may reasonably be expected to bring
Euticals or any of the Group Companies into public disgrace or disrepute; and/or

 

(ii)       the
commission by the Director of an act, or an omission, intendedto materially harm the business of the Company or any of
the Group Companies; and/or

 

(iii)      Director's
gross negligence or wilful misconduct with respect to the management of the Company or any of the Group Companies; and/or

 

(iv)      any
act, event, omission or cause by the Director within the concept of "just cause" according to the provisions of section
2383 of the ICC; and/or

 

(v)       serious
breach of the Director's duties as provided for in the Company'sBy-laws, or in any other relevant corporate resolution capable
of infringing the fiduciary relationship existing between the Company and the Director; and/or

 

    	 	4

     

    

 

(vi)      material
breach by the Director of the provisions under sections 2390 or 2391 of the ICC; and/or

 

(vii)     material
breach by the Director of any of its obligations under Sections 2, or 5 or 6 of this Agreement;

 

(viii)    Director's
death or impossibility to perform one or more of the Offices for a period of 6 (six) months in a row or over the duration of this
Agreement.

 

7.3.         In
case of occurrence of a circumstance of "Good Leaver" (within the meaning indicated in Section 7.4 below), Euticals will
be entitled to terminate this Agreement and shall cause Euticals to pay to the Director, as liquidated damages pursuant to Section
1382 of the ICC, a termination indemnity ('Termination Indemnity") equal to the Base Gross Remuneration which will
be due from the date of the occurrence of the Good Leaver and the natural expiration date of the Initial Term (or Renewal Term,
if this is the case), plus the pro rata bonus (if any) accrued up to the effective date of termination of the Good Leaver. In addition,
the Director will remain entitled to retain any shares of restricted stock which have already vested at that time pursuant to Annex
3 or, in the case of other RSUs, pursuant to the vesting terms of any RSU Agreement(s) signed between AMRI and the Director as
at the date of the occurrence of the Good Leaver. The Termination Indemnity covers any other possible claim or damages or indemnity
connected with the termination of the Directorship Agreement, which could be raised by the Director.

 

7.4.         Any
of the following circumstances will be considered as a case of "Good Leaver":

 

		7.4.1.	Director's
resignation from the Offices in case such resignation (i) has been requested – for other reasons than Just Cause - by any
of the Company or (ii) is grounded on material breach by the Company of any of its obligations under Section 3 above;

 

		7.4.2.	revocation
from the Offices for other reasons than Just Cause.

 

7.5.         The
payment of the Termination Indemnity to the Director due under this Agreement, shall be subject to the execution by the Director
- but solely if and and to the extent that Company also carries out execution of a formal settlement agreement with the Company,
whereby the Director expressly waives any and all other claims and/or demands (even of a compensatory and/or employment requalification
nature) - pursuant to Article 2383, paragraph 3, of the ICC and/or Article 2113 of the ICC - relating to or arising from or connected
with the termination of this Agreement, the Offices, and/or any other relationship among the Director, any of the Company and/or
one or more of the Group Companies.

 

8.            Conditions

 

8.1.         It
remains understood that (i) should the Closing not occur within later of (i) the Closing Date or (ii) the later date
indicated by Euticals to the Director or (iii) in any event at within December 31, 2016, or (ii) should the Director not
remain in the Old Offices until the Closing Date - the Parties recognizing and agreeing that this is intended as the
effective date of Director's leaving the Old Offices, and not the date of her tendering resignation - this Agreement shall
become automatically null and void and/or ineffective, without any need of communication between the Parties, and without any
entitlement to any reciprocal indemnities.

 

9.            Miscellaneous

 

9.1          The Agreement may only be amended in writing with amendments duly signed by all the Parties.

 

9.2.         The
failure of, or delayed or partial exercise, by the Parties, of any right or remedy under this Agreement will not be construed as
a waiver thereof.

 

9.3.         In the event any provision
of this Agreement should be declared null and/or void, in whole or in part, the validity of any other provisions hereof will not
be affected and the provision which has been declared null and/or void will be interpreted, to the possible extent, in accordance
with the original intention of the Parties.

 

    	 	5

     

    

 

9.4.         For
any matter not regulated hereunder, reference shall be made to the ICC and other applicable provisions of Italian law.

 

9.5.         All
notices, requests, demands and other communications required or permitted hereunder will be in writing and will be deemed to have
been duly given when delivered by hand against acknowledgement of receipt or mailed, certified or registered mail with postage
prepaid, or sent by e- mail (followed by courier) or courier, as follows:

 

if
to the Director:

 

Name:
Margalit Fine 

Email
address

 

if
to Euticals:

 

Name:
Mrs. Lori M. Henderson 

Attn:
Lori M. Henderson

Address:
Viale Bianca Maria 25, 20122 Milan (Ml), Italy

Email
address:

 

if
to AMRI:

 

Name:
Mrs. Lori M. Henderson

Address:
201 Jones Road, Waltham, MA 2451

Email
address:

 

Any
of the Parties may modify the address to which the notices, requests, demands and other communications under this Agreement will
be sent in respect of that Party, by serving a relevant written notice upon the other Parties.

 

10.          Governing
Law

 

10.1.        This
Agreement is governed by Italian law.

 

11.           Language

 

11.1         This Agreement is drafted in English, except for Annex1 which is drafted in Italian. 

 

 

 

    	 	6

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