Document:

Exhibit 10.26

 

SECOND AMENDMENT 

TO CREDIT AND SECURITY AGREEMENT

 

THIS SECOND AMENDMENT
TO CREDIT AND SECURITY AGREEMENT (this “Second Amendment”) is made as of the 13th date of November 2013 by and
among WELLS FARGO BANK, NATIONAL ASSOCIATION
(“Lender”), Albany Molecular Research, Inc., a Delaware
corporation (“AMRI” or the “Administrative Borrower”), AMRI
Rensselaer, Inc., a Delaware corporation (“AMRI Rensselaer”), AMRI
Burlington, Inc., a Massachusetts corporation (“AMRI Burlington”), and AMRI
Bothell Research Center, Inc., a Delaware corporation (“AMRI Bothell” and together with AMRI, AMRI
Rensselaer and AMRI Burlington, each a “Borrower” and collectively, the “Borrowers”).

 

WITNESSETH:

 

WHEREAS, the Borrowers
and Lender are party to a certain Credit and Security Agreement dated as of April 11, 2012, as amended by First Amendment to Credit
and Security Agreement dated as of December 20, 2012 (as the same may be further amended, modified, supplemented or restated and
in effect from time to time, the “Credit Agreement”), pursuant to which Lender has made loans and other financial
accommodations to the Borrowers; and

 

WHEREAS, the Borrowers
and Lender have agreed to enter into this Second Amendment to modify and amend certain provisions of the Credit Agreement, but
only as provided for, and subject to the terms and conditions, herein.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lender and the Borrowers agree as
follows:

 

1.          Capitalized
Terms. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Credit Agreement.

 

2.          Amendments
to Credit Agreement. The Credit Agreement is hereby amended as follows:

 

		(a)	Section 7.7(a)(i) of the Credit Agreement is hereby amended by adding the following provision
at the end of such clause: “; provided that any Loan Party may satisfy a conversion or exchange obligation of Convertible
Securities so long as the delivery of common stock of AMRI or cash, as applicable, is permitted by Section 7.9 hereof.”

 

		(b)	Section 7.9 of the Credit Agreement is hereby amended by deleting the word “and”
immediately preceding clause (e) thereof and adding the following new clauses (f) and (g) immediately following the end of clause
(e) thereof:

 

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“(f) any
Loan Party (i) may make required (A) interest payments under the Convertible Securities or (B) principal payments either (x) in
connection with a put of Convertible Securities after the occurrence of a fundamental change (as defined or described in such Convertible
Securities), or (y) at maturity of the Convertible Securities, (ii) may deliver common stock of AMRI in satisfaction of all or
a portion of (x) the conversion or exchange obligation in respect of any Convertible Securities, and (y) the exercise obligations
in respect of any Warrants, in each case, so long as no Change of Control would result therefrom, (iii) may pay cash in satisfaction
of all or a portion of the conversion or exchange obligation in respect of such Convertible Securities so long as no Default or
Event of Default has occurred or is continuing at the time of such payment, or would be caused by such payment; provided
that if any payment described in clause (iii) hereof is paid in whole or in part with the proceeds of any Advances, the Administrative
Borrower shall have provided Lender with at least two business days prior written notice thereof and either deposited at least
$5,000,000 in a fully blocked and segregated deposit account of a Borrower subject to a Control Agreement, providing for sole and
exclusive dominion by Lender until all Obligations (other than inchoate indemnification obligations for which no claim has been
asserted) have been paid in full in cash and Lender’s obligations to provide additional credit hereunder shall have been
terminated, which for the avoidance of doubt, shall be in addition to any Borrowing Base Eligible Cash, or, if such cash collateral
is not provided, Lender shall have implemented the Availability Block prior to the Borrowers making such payment described in clause
(iii), and (iv) may purchase AMRI’s common stock upon the exercise of the Call Options, so long as such purchase does not
involve a payment of cash by such Loan Party; and

 

(g) the issuer
of any Convertible Securities may make any cash payment to purchase Call Options out of, and substantially contemporaneously with
the receipt of, the net proceeds of the sale of Convertible Securities.”

 

		(c)	Section 7.12(a)(i) of the Credit Agreement is hereby amended by deleting the figure "$500,000"
therefrom and substituting therefor the figure "$1,500,000"."

 

		(d)	Section 7.14 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

"Limitation
on Issuance of Stock. Except for the issuance or sale of common stock, Warrants, Convertible Securities or Permitted Preferred
Stock by Borrowers or the other Loan Parties, issue or sell or enter into any agreement or arrangement for the issuance and sale
of any of their Stock."

 

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		(e)	The table in Section 8(c) of the Credit Agreement is hereby amended and restated in its
entirety as follows:

 

	“Maximum Capital Expenditures	 	 	Applicable Period
	$	6,250,000	 	 	For the 3 month period ending March 31 in any fiscal year”
	$	12,500,000	 	 	For the 6 month period ending June 30 in any fiscal year”
	$	18,750,000	 	 	For the 9 month period ending September 30 in any fiscal year”
	$	25,000,000	 	 	For the 12 month period ending December 31 in any fiscal year”

 

		(f)	Section 8(d) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(d)        [Reserved].”

 

		(g)	Section 8(e) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(e)        Cash
on Hand at Foreign Subsidiaries. The Borrowers shall not permit their foreign Subsidiaries to hold Cash or Cash Equivalents
in excess of an aggregate average monthly amount of $10,000,000 (calculated at current exchange rates and tested as of the close
of business of the last Business Day of month).”

 

		(h)	Section 9.7 of the Credit Agreement is hereby amended by inserting “or (c) a fundamental
change (as defined or described in any Convertible Securities” after clause (b) therein.

 

		(i)	Schedule 1.1 to the Credit Agreement is hereby amended as follows:

 

		(i)	The definition of “Borrowing Base” is hereby amended and restated in its entirety as
follows:

 

““Borrowing
Base” means as of any date of determination, the result of:

 

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(a)        85%
of the Eligible Royalties Receivable accrued on the Borrowers’ books and records in accordance with GAAP (less the amount,
if any, of the Dilution Reserve, if applicable), plus

 

(b)        the
M&E Sublimit, plus

 

(c)        the
lesser of (i) $5,000,000 and (ii) the amount of Borrowing Base Eligible Cash, minus

 

(d)        the
Availability Block, minus

 

(e)        the
aggregate amount of Reserves, if any, established by Lender.”

 

		(ii)	The definition of “EBITDA” is hereby amended by (A) adding “without duplication”
prior to the colon in clause (b) thereof, (B) deleting the word “and” at the end of clause (b)(iii) thereof, and (C)
adding the following new clause (b)(v) thereto: “and (v) the net cash proceeds of any Fundamental Change Put Financing”.

 

		(iii)	The definition of “Eligible Royalties Receivable” is hereby amended and restated in
its entirety as follows:

 

“Eligible
Royalties Receivables” means the royalties receivables from the Sanofi-Aventis License Agreement or the Actavis Development
and Supply Agreement that are not excluded as ineligible by one or more of the excluding criteria set forth below; provided,
however, that such criteria may be revised from time to time by Lender in Lender’s Permitted Discretion. Eligible
Royalties Receivables shall not include the following:

 

(a)         royalty
receivables from the Sanofi-Aventis License Agreement or the Actavis Development and Supply Agreement received by a Borrower more
than 65 days after the end of each fiscal quarter;

 

(b)         at
Lender’s option, all or any portion of the royalty receivables from either the Sanofi-Aventis License Agreement or the Actavis
Development and Supply Agreement if 10% or more of the aggregate amount of royalty receivables payable under such agreement and
due after the end of any fiscal quarter are deemed ineligible under clause (a) above;

 

			(c)         all of the royalty receivables from
the Sanofi-Aventis License Agreement if Aventis Pharmaceuticals, Inc. (or its successors or assigns) is subject to an Insolvency
Proceeding, is not Solvent, has gone out of business, or as to which a Borrower has received notice of an imminent Insolvency Proceeding
or a material impairment of the financial condition of such Person; or all of the royalty receivables from the Actavis Development
and Supply Agreement if Actavis, Inc. (or its successors or assigns) is subject to an Insolvency Proceeding, is not Solvent, has
gone out of business, or as to which a Borrower has received notice of an imminent Insolvency Proceeding or a material impairment
of the financial condition of such Person; or

 

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(d)        all
of the royalty receivables from the Sanofi-Aventis License Agreement and/or the Actavis Development and Supply Agreement, the collection
of either of which, Lender, in its Permitted Discretion, believes to be doubtful by reason of either Aventis Pharmaceuticals, Inc.’s
or Actavis Inc.’s (or its successors or assigns) financial condition.

 

Any royalty
receivables from the Sanofi-Aventis License Agreement or the Actavis Development and Supply Agreement which are not Eligible Royalties
Receivables shall nonetheless constitute Collateral.”

 

		(iv)	The definition of “Hedge Agreement” is hereby amended and restated in its entirety
as follows:

 

“Hedge
Agreement” means a “swap agreement” as that term is defined in Section 101(53B)(A) of the Bankruptcy Code,
other than any Call Options or Warrants.

 

		(v)	The following sentence shall be added to the end of the definition of “Indebtedness”:
“Notwithstanding the foregoing, and for the avoidance of doubt, any Warrants shall not constitute Indebtedness.”

 

		(vi)	The following sentence shall be added to the end of the definition of “Investment”:
“Notwithstanding the foregoing, and for the avoidance of doubt, any Call Options shall not constitute an Investment to the
extent that such Call Options provide that no cash payments (other than the initial purchase thereof in accordance with Section
7.9(g) of this Agreement) shall be payable by any Loan Party in connection therewith.”

 

		(vii)	The definition of “Permitted Indebtedness” is hereby amended by deleting the word “and”
immediately preceding clause (h) thereof and adding the following new clauses (i) and (j) immediately following the end of clause
(h) thereof:

 

“(i)
Indebtedness consisting of Convertible Securities; and

 

(j) Indebtedness
consisting Fundamental Change Put Financing.”

 

		(viii)	The following new definitions are hereby added to Schedule 1.1 in the appropriate alphabetical
order:

 

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““Availability
Block” means either $0.00 or if the Borrowers have not provided the cash collateral described in Section 7.9(f)(iii),
$5,000,000.”

 

““Actavis
Development and Supply Agreement” means the Development and Supply Agreement by and between Organichem Corp (now AMRI)
and Purepac Pharmaceutical Co. (now Actavis US) dated May 10, 2000, as amended prior to October 31, 2012.”

 

““Call
Options” means, with respect to any Convertible Securities, any options to purchase common stock of AMRI (regardless
of whether settled in cash or such common stock or any combination thereof) that are purchased by AMRI, or any other Borrower issuing
such Convertible Securities, substantially contemporaneously with the sale of such Convertible Securities.”

 

““Convertible
Securities” means any Indebtedness of AMRI or any other Borrower that is convertible, or exchangeable, at the option
of the holders thereof into cash, shares of AMRI’s common stock or any combination thereof and any guarantee in respect thereof
, so long as (a) the scheduled maturity thereof is on or after the date that is four years, ten months after the first date of
original issuance thereof, (b) the aggregate principal amount of such Convertible Securities (including any issuance upon exercise
of any underwriter’s or initial purchaser’s option) shall not exceed $150,000,000, (c) there is no sinking fund or
any scheduled payment of principal prior to such date, and (d) the interest rate on such Indebtedness shall not exceed 5.0% per
annum.”

 

““Fundamental
Change Put Financing” means any Indebtedness of AMRI or any other Borrower, substantially all of the Net Cash Proceeds
of which are used to satisfy AMRI’s obligations to purchase the Convertible Securities upon a fundamental change (as defined
or described in such Convertible Securities).”

 

““Warrants”
means, with respect to any Convertible Securities, any warrants to purchase common stock of AMRI that are issued by AMRI substantially
contemporaneously with the sale of such Convertible Securities.”

 

3.            Ratification
of Loan Documents. Except as specifically amended by this Second Amendment, all of the terms and conditions of the Credit Agreement
and of each of the other Loan Documents shall remain in full force and effect. Each of the Loan Parties hereby ratifies, confirms,
and reaffirms all of the representations, warranties and covenants contained in the Credit Agreement or any other Loan Document.
The Loan Parties warrant and represent that no Event of Default exists before or after giving effect to this Second Amendment.
Each of the Loan Parties hereby acknowledges and agrees that it has no offsets, defenses, claims, or counterclaims against Lender
with respect to the Obligations, or otherwise, and that if such Loan Party now has, or ever did have, any offsets, defenses, claims,
or counterclaims against Lender, whether known or unknown, at law or in equity, all of them are hereby expressly waived and such
Loan Party hereby releases Lender from any liability thereunder.

 

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4.            Waiver.
Each Loan Party hereby absolutely and unconditionally releases and forever discharges Lender, and any and all participants,
parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together
with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims,
demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under
any state or federal law or otherwise, which such Loan Party has had, now has or has made claim to have against any such person
for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the
date of this Second Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.

 

5.            Conditions
to Effectiveness. This Second Amendment shall become effective on the date hereof (“Second Amendment Effective Date”)
only upon satisfaction of each of the following conditions to the satisfaction of Lender:

 

		(a)	This Second Amendment shall have been duly executed and delivered by the respective parties hereto
and shall be in form and substance satisfactory to Lender.

 

		(b)	All corporate and shareholder action on the part of each Loan Party necessary for the valid execution,
delivery and performance of this Second Amendment shall have been duly and effectively taken and evidence thereof satisfactory
to Lender shall have been provided to Lender.

 

		(c)	No Default or Event of Default shall have occurred and be continuing.

 

		(d)	There shall be no material misstatements in the materials furnished by the Loan Parties to Lender
prior to closing of this Second Amendment, or in representations or warranties of the Loan Parties made in the Credit Agreement.
Lender shall be satisfied that any financial statements of the Loan Parties delivered to it by the Loan Parties fairly present
in all material respects the financial condition of the Loan Parties and that there has been no material adverse change in the
assets, business, financial condition or income of the Loan Parties since the date of the most recent financial statements of the
Loan Parties delivered to Lender pursuant to Section 6.1 of the Credit Agreement.

 

		(e)	The Loan Parties shall have paid to Lender all costs and expenses of Lender (including, without
limitation, reasonable attorneys’ fees) in connection with the preparation, negotiation, execution and delivery of this Second
Amendment.

 

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		(f)	The Loan Parties shall have paid to Lender a one-time amendment fee of $50,000 which shall be fully
earned and payable upon the execution of this Second Amendment and shall not be subject to refund or rebate under any circumstances.

 

6.          Miscellaneous.

 

		(a)	This Second Amendment may be executed in several counterparts and by each party on a separate counterpart,
each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. Delivery
of an executed counterpart by facsimile or other electronic transmission shall be equally as effective as delivery of an original
executed counterpart hereof.

 

		(b)	This Second Amendment expresses the entire understanding of the parties with respect to the transactions
contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.

 

		(c)	Any determination that any provision of this Second Amendment or any application hereof is invalid,
illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability of such
provision in any other instance, or the validity, legality or enforceability of any other provisions of this Second Amendment.

 

		(d)	The Loan Parties represent and warrant that they have consulted with independent or internal legal
counsel of their selection in connection with this Second Amendment and are not relying on any representations or warranties of
Lender or its counsel in entering into this Second Amendment.

 

		(e)	THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS SECOND AMENDMENT AND ANY DISPUTE ARISING OUT
OF THE RELATIONSHIP BETWEEN THE PARTIES HERETO, WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL
LAWS OF STATE OF NEW YORK.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF,
the parties have executed this Second Amendment as a sealed instrument by their respective duly authorized officers.

 

	BORROWERS:	ALBANY MOLECULAR RESEARCH, INC.
	 	 
	 	By:	/s/ Michael M. Nolan
	 	Name:	Michael M. Nolan
	 	Title:	Vice President & CFO
	 	 
	 	AMRI RENSSELLAER, INC.
	 	 
	 	By:	/s/ Michael M. Nolan
	 	Name:	Michael M. Nolan
	 	Title:	Treasurer
	 	 
	 	AMRI BURLINGTON, INC.
	 	 
	 	By:	/s/ Michael M. Nolan
	 	Name:	Michael M. Nolan
	 	Title:	Vice President & CFO
	 	 
	 	AMRI BOTHELL RESEARCH, INC.
	 	 
	 	By:	/s/ Michael M. Nolan
	 	Name:	Michael M. Nolan
	 	Title:	Vice President & CFO

 

    	 

    	 

    

 

	LENDER:	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 
	 	By:	/s/ Patricia Farrell
	 	Name:	Patricia Farrell
	 	Title:	Vice PresidentExhibit 10.28

 

SEPARATION AGREEMENT

 

This Separation Agreement
(“Separation Agreement”) is made between Bruce Sargent (“Executive”) and ALBANY MOLECULAR
RESEARCH, INC. (the “Company,” together with Executive, the “Parties”) and is effective as
of the 16th day of October 2013.

 

WHEREAS, Executive
is serving as the Company’s Senior Vice President of Drug Discovery;

 

WHEREAS, the
Parties entered into an Amended and Restated Employment Agreement dated April 5, 2012 (the “Employment Agreement”);

 

WHEREAS, the
Parties also entered into a Confidentiality and Non-Disclosure Agreement dated April 3, 2006 (“Employee Agreement”),
the terms of which expressly survive the termination of Executive’s employment;

 

WHEREAS, Executive
holds options to purchase shares of the Company’s common stock which are both vested and unvested options and are governed
by the Company’s Amended 2008 Stock Option and Incentive Plan or any predecessor plan under which equity was granted to Executive
(collectively, the “Stock Plan”) and associated stock option agreements and shares of restricted stock which
are unvested and are governed by the Stock Plan and associated restricted stock agreements (collectively “Equity Documents”);

 

WHEREAS, pursuant
the Employment Agreement, the Company has agreed to provide Executive with certain termination benefits (the “Termination
Benefits”) in the event of a termination without Cause provided that, among other things, the Executive enters into a
Separation Agreement which includes a general release of claims in favor of the Company and related persons and entities;

 

WHEREAS, in
exchange for, among other things, Executive’s agreement to the terms of this Separation Agreement, the Company shall provide
Executive with the Termination Benefits as described below;

 

WHEREAS, the
Non-Contingent Payments set forth in Section 1 and the Termination Benefits set forth in Section 2 are the exclusive source of
payments, benefits and equity rights to Executive in connection with the termination of Executive’s employment. By entering
into this Separation Agreement, which includes the severance pay and benefits set forth in the Employment Agreement, Executive
acknowledges and agrees that he is not entitled to any other severance pay, benefits or equity rights including without limitation
pursuant to any severance plan, or program or arrangement.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

 

    	 

    	 

    

 

1.          Non-Contingent
Payments. Executive and the Company acknowledge and agree that (a) Executive shall continue to remain an active, full-time
employee of the Company, receiving base salary and benefits (in each case at the same amount and level as in effective immediately
prior to the date hereof, provided however, that any benefits available to the Executive may be modified to the extent such benefits
are modified for the other members of the executive staff of the Company), through the date on which the Company and the Employee
agree that he no longer must report to work which will be no later than December 31, 2013 (the “Termination Date”),
and (b) except as specifically revised by, amended by, or as otherwise set forth in, this Separation Agreement, the Employment
Agreement, the Employee Agreement and the Equity Documents shall remain in full force and effect in accordance with their terms.
On the Termination Date, the Executive will resign all of his positions with the Company, including any positions as director or
officer of any of the Company’s subsidiaries and will sign any documents reflecting such resignations reasonably requested
by the Company. The Company shall also pay all accrued but unused vacation through the Termination Date, such payment to be made
on the first payroll date following the Termination Date. The Company shall promptly reimburse Executive for any outstanding, reasonable
business expenses that Executive has incurred on the Company’s behalf through the Termination Date, provided the Company
receives appropriate documentation pursuant to the Company’s business expense reimbursement policy.

 

2.          Termination
Benefits. For purposes of the Employment Agreement, Executive’s employment shall be treated as having been terminated
without Cause. Accordingly, in exchange for his signing, not revoking and complying with the terms of this Separation Agreement,
the Company agrees to provide Executive with the following Termination Benefits:

 

(a)the Company
shall continue to pay Executive the base salary that is in effect as of the date hereof for a period commencing on the Termination
Date and continuing through December 31, 2014:

 

(b)the Company
shall pay to the Executive in twelve monthly installments, a bonus amount equal to $131,124, such bonus payments beginning with
the first payroll date that begins thirty (30) days after the Termination Date;

 

(c)notwithstanding
the employment status of the Executive, the Executive shall continue to be eligible to receive technology incentive compensation
payments under the provisions of the Technology Development Incentive Plan established by the Company for any Identified Compounds,
which for purposes of this Agreement, shall be the biogenic amines compounds currently named: BMS-820836 (at 0.17%), BMS-866949
(at 0.20%), BMS-911278 (at 0.10%) and BMT-026589 (at 0.10%), each of which was identified prior to the date of this Agreement and
for which technology incentive payments have been made prior to the date of this Agreement based upon revenue from the License
and Research Agreement by and among Bristol-Myers Squibb Company, AMR Technology, Inc., and the Company dated as of October 20,
2005 (the “BMS Agreement”), provided, however, that (i) any such future payments shall be at the percentages of revenue
set forth above and (ii) the parties agree that such payments shall be due to Executive on revenue related to such Identified Compounds
whether such revenue arises from the BMS Agreement or from some other third party source pursuant to an agreed upon assignment
or other transfer of the Identified Compounds to such third party.

 

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(d)upon approval
by the Compensation Committee of the Company, the following shares of restricted stock and stock options previously issued to the
Executive (a total of 10,650 shares of Restricted Stock and stock options to purchase 31,950 shares of Common Stock) shall not
terminate on the Termination Date, but instead shall continue to vest according to their terms on the vesting dates set forth below.
The stock options referenced in this Section 2(d) shall be eligible to be exercised for three months following the vesting date
set forth below (the relevant exercise period) and if not exercised by such time, shall expire. All such awards shall be otherwise
governed by the terms of the Equity Documents (including the forfeiture of any other shares covered by such restricted stock and
option agreements other than those specifically set forth below):

 

Restricted Stock

 

	Grant Date	 	Vesting Date	 	Shares	 
	 	 	 	 	 	 
	03/16/2009 Award	 	3/16/14	 	 	700	 
	03/08/2010 Award	 	3/8/14	 	 	700	 
	01/05/2011 Award	 	1/5/14	 	 	3,000	 
	06/02/2011 Time Award	 	6/2/14	 	 	1,250	 
	02/17/2012 Time	 	2/17/14	 	 	1,250	 
	02/17/2012 Performance	 	2/17/14	 	 	1,250	 
	01/31/2013 Time	 	1/31/14	 	 	1,250	 
	01/31/2013 Performance	 	1/31/14	 	 	1,250	 
	 	 	 	 	 	 	 
	Total	 	 	 	 	10,650	 

 

Options

 

	Grant Date	 	Vesting Date	 	Shares	 
	 	 	 	 	 	 
	03/16/2009	 	3/16/14	 	 	2,100	 
	03/08/2010	 	3/8/14	 	 	2,100	 
	01/05/2011	 	1/5/14	 	 	9,000	 
	06/02/2011	 	6/2/14	 	 	3,750	 
	02/17/2012	 	2/17/14	 	 	3,750	 
	02/17/2012	 	2/17/14	 	 	3,750	 
	01/31/2013	 	1/31/14	 	 	3,750	 
	01/31/2013	 	1/31/14	 	 	3,750	 
	 	 	 	 	 	 	 
	Total	 	 	 	 	31,950	 

 

In the event that during
the relevant exercise period as set forth above, for any of the stock options listed above or otherwise vested on the Termination
Date, the Executive is restricted from selling or otherwise trading in the Company’s stock, for whatever reason as may be
notified to the Executive by the Company, then the exercise period for such stock options will be extended to a date that is 30
days following the date that Executive is informed in writing that he is no longer restricted from trading in the Company’s
stock.

 

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(e)the Company
shall 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, which the parties agree to be $15,000 which will be paid in a lump sum to the designated
outplacement firm within thirty (30) days of the Termination Date;

 

(f) the Company
shall 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 Termination Date for a period from the Termination Date through December 31, 2014. In the event that the Executive
is not participating in the Company’s health and dental insurance on the Termination Date, Executive shall be eligible to
re-enroll at any time prior to December 31, 2014 subject to a qualifying event as solely determined by the Vice President of Human
Resources at the Company;

 

(g)the Company
will pay Executive a bonus in a final amount to be determined following the close of the 2013 fiscal year (the “2013 Bonus”)
which will be calculated based on the Company’s achievement of the 2013 bonus targets that were established by the Board
of Directors and will be finally determined by the Compensation Committee of the Board of Directors following completion of the
audit of the fiscal year results. The parties agree that the amount of the bonus payable with respect to the Executive’s
personal goals is equal to $31,487. For purposes of this Section 2(g) Executive’s corporate bonus allocation, if any, shall
be determined in the same manner as the other Executives at the Company. The 2013 Bonus will be paid no later than the date that
the bonuses, if any, for such time period are paid to the other executive officers of the Company or March 15, 2014, whichever
is earlier; and

 

(h)any other equity
awards pursuant to the Equity Documents which do not continue to vest pursuant to Section 2(b) shall cease to vest on the Termination
Date and exercise of such equity awards shall be subject to the terms of the Equity Documents.

 

3.          General
Release.

 

(a)Executive irrevocably
and unconditionally releases and forever discharges the Company, all of its affiliated and related entities, its and their respective
predecessors, successors and assigns, its and their respective executive benefit plans and the fiduciaries of such plans, and the
current and former officers, directors, stockholders, executives, attorneys, accountants, and agents of each of the foregoing in
their official and personal capacities (collectively referred to as the “Releasees”) generally from all claims, demands,
debts, damages and liabilities of every name and nature, known or unknown (“Claims”) that, as of the date when Executive
signs this Separation Agreement, he has, ever had, now claims to have or ever claimed to have had against any or all of the Releasees.
This release includes, without implication of limitation, the complete waiver and release of all Claims of or arising in connection
with or for: the Employment Agreement including Claims for breach of express or implied contract; wrongful termination of employment
whether in contract or tort; intentional, reckless, or negligent infliction of emotional distress; breach of any express or implied
covenant of employment, including the covenant of good faith and fair dealing; interference with contractual or advantageous relations,
whether prospective or existing; deceit or misrepresentation; discrimination or retaliation under state, federal, or municipal
law, including, without implication of limitation, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e
et seq., as amended, the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment
Act, 29 U.S.C. § 621 et seq.; the New York Executive Law; the New York Constitution; the New York Labor Law; the New
York Civil Rights Law; defamation or damage to reputation; reinstatement; punitive or emotional distress damages; wages, severance
pay, vacation pay, back or front pay or other forms of compensation; and attorney’s fees and costs. Executive understands
that this general release of Claims extends to any and all Claims related to Executive’s employment by the Company and the
termination of his employment and all claims in his capacity as a Company stockholder. Executive understands that this general
release does not release any rights arising under or preserved by this Separation Agreement, or to claims that may arise out of
acts or events that occur after the date on which Executive signs this Separation Agreement. Executive represents that he has not
assigned to any third party and has not filed with any agency or court any Claim released by this Separation Agreement. The Company
represents that it is unaware of any claims, demands, debts, damages and liabilities of any kind that the Company may have against
the Executive as of the date of this Separation Agreement and that Executive’s willingness to enter into this Separation
Agreement and provide the release set forth in this Section is in consideration, in part, on that representation.

 

    	4

    	 

    

 

(b)Executive also
agrees to confirm on the Termination Date, in the form of the confirmation attached to this Separation Agreement, that the general
release set forth in Section 3(a) remains in effect and that it also is applicable to any claims which may have arisen during the
period from the execution of this Separation Agreement through the Termination Date.

 

4.          Communications
Regarding Departure and Nondisparagement Other than to state the fact that the termination of Executive’s employment
has occurred and other public filings required by law, neither the Company nor Executive will communicate with any of the Company’s
current customers, suppliers or business partners (collectively “Company Contacts”) about his departure from the Company
without the express consent of the other party. Executive further agrees not to make any disparaging statements concerning the
Company or any of its affiliates or current or former officers, directors, shareholders, employees or agents. The executives and
directors of the Company will be instructed not to make any disparaging statements concerning Executive.

 

5.          Return
of Property. Executive commits to returning to the Company all Company property, including, without limitation, computer
equipment, software, keys and access cards, credit cards, files and any documents (including computerized data and any copies made
of any computerized data or software) containing information concerning the Company, its business or its business relationships
(in the latter two cases, actual or prospective). Executive further commits to deleting and finally purging any duplicates of files
or documents that may contain Company or customer information from any computer or other device that remains Executive’s
property after the Termination Date (except to the extent any such information was automatically backed up and is not reasonably
accessible).

 

    	5

    	 

    

 

6.          Restrictive
Covenants; Injunctive Relief. Executive’s obligations under Sections 7 and 8 of the Employment Agreement, and under
Sections 4 and 5 of this Separation Agreement, and those set forth in the Employee Agreement shall be referred to as the “Restrictive
Covenants.” Executive agrees that it would be difficult to measure any harm caused to the Company that might result from
any breach by Executive of any of the Restrictive Covenants, and that in any event money damages would be an inadequate remedy
for any such breach. Accordingly, Executive agrees that if he breaches, or proposes to breach, any portion of the Restrictive Covenants
the Company shall be entitled, in addition to all other remedies it may have, to an injunction or other appropriate equitable relief
to restrain any such breach, without showing or proving any actual damage to the Company and without the necessity of posting a
bond. In the event that the Company prevails in any action to enforce any part of the Restrictive Covenants, then Executive also
shall be liable to the Company for attorney’s fees and costs incurred by the Company in enforcing such provision(s).

 

7.          Advice
of Counsel. This Separation Agreement is a legally binding document and Executive’s signature will commit Executive
to its terms. Executive acknowledges that he has been advised to discuss all aspects of this Separation Agreement with his attorney,
that he has carefully read and fully understands all of the provisions of this Separation Agreement and that Executive is voluntarily
entering into this Separation Agreement.

 

8.          Termination
of Termination Benefits. Executive acknowledges that his right to the Termination Benefits is conditional on his compliance
with the Restrictive Covenants. In the event that Executive fails to comply with any of the Restrictive Covenants, in addition
to any other legal or equitable remedies it may have for such breach, the Company shall have the right to terminate the Termination
Benefits set forth in Section 2 of this Separation Agreement. Such termination of those payments and benefits in the event of such
breach by the Executive shall not affect Executive’s ongoing obligations and shall be in addition to and not in lieu of the
Company’s rights to injunctive relief and other legal and equitable remedies that the Company may have.

 

9.          Time
for Consideration; Effective Date. Executive acknowledges that he has been provided with the opportunity to consider this
Separation Agreement for twenty-one (21) days before signing it. To accept this Separation Agreement, Executive must return a signed
original of this Separation Agreement so that it is received by Brian Russell on or before the expiration of this twenty-one (21)
day period. If Executive signs this Separation Agreement within less than twenty-one (21) days of the date of its delivery to him,
Executive acknowledges by signing this Separation Agreement that such decision was entirely voluntary and that he had the opportunity
to consider this Separation Agreement for the entire twenty-one (21) day period. Executive and the Company agree that any changes
or modifications to this Separation Agreement shall not restart the twenty-one (21) day period. For a period of seven (7) days
from the day of the execution of this Separation Agreement, Executive shall retain the right to revoke this Separation Agreement
by written notice that must be received by Brian Russell before the end of such revocation period. This Separation Agreement shall
become effective on the business day immediately following the expiration of the revocation period (the “Effective Date”),
provided that Executive does not revoke this Separation Agreement during the revocation period.

 

10.         Enforceability.
Executive acknowledges that, if any portion or provision of this Separation Agreement or the Restrictive Covenants shall to any
extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder other than those as to which
it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision shall be valid and enforceable
to the fullest extent permitted by law.

 

    	6

    	 

    

 

11.         Entire
Agreement. This Separation Agreement, the Employee Agreement, the Equity Documents, and the sections of the Employment
Agreement specifically referenced herein (except as specifically revised by, amended by, or as otherwise set forth in, this Separation
Agreement) constitute the entire agreement between Executive and the Company concerning Executive’s relationship with the
Company, and supersedes and replaces any and all prior agreements and understandings between the Parties concerning Executive’s
relationship with the Company.

 

12.         Waiver.
No waiver of any provision of this Separation Agreement shall be effective unless made in writing and signed by the waiving party.
The failure of either Party to require the performance of any term or obligation of this Separation Agreement, or the waiver by
either Party of any breach of this Separation Agreement, shall not prevent any subsequent enforcement of such term or obligation
or be deemed a waiver of any subsequent breach.

 

13.         Taxes.
The Company shall undertake to make deductions, withholdings and tax reports with respect to payments and benefits under this Separation
Agreement and in connection with other compensation matters to the extent that it reasonably and in good faith determines that
it is required to make such deductions, withholdings and tax reports. Payments under this Separation Agreement shall be in amounts
net of any such deductions or withholdings. Nothing in this Separation Agreement shall be construed to require the Company to make
any payments to compensate Executive for any adverse tax effect associated with any payments or benefits made to Executive in connection
with Executive’s employment with the Company.

 

14.         
Governing Law; Disputes; Interpretation. This Separation Agreement shall be construed and regulated in all respects
under the laws of the State of New York without regard to conflict of law principles. Any dispute or controversy arising under
or in connection with this Separation 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 of any dispute, this Separation Agreement is intended by the Parties to be construed as a whole, to be interpreted
in accordance with its fair meaning, and not to be construed strictly for or against either Party or the “drafter”
of all or any portion of this Separation Agreement.

 

15.         Counterparts.
This Separation Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be
taken to be an original, but all of which together shall constitute one and the same document. Facsimile and pdf signatures shall
be deemed to be of equal force and effect as originals.

 

    	7

    	 

    

 

16.         Section
409A.

 

(a)        Anything in
this Agreement to the contrary notwithstanding, if at the time of Executive’s separation from service within the meaning
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Company determines that 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 Executive becomes entitled to under this Agreement on account of Executive’s separation from service would
be considered deferred compensation otherwise 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 Executive’s separation from
service, or (B) 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.

 

(b)        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 Executive’s termination of employment, then
such payments or benefits shall be payable only upon 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).

 

(c)        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. Each payment pursuant to this Agreement is intended to constitute
a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). 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.

 

(d)        The Company
makes no representation or warranty and shall have no liability to 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.

 

    	8

    	 

    

 

IN WITNESS WHEREOF,
the Parties, intending to be legally bound, have executed this Separation Agreement on the date(s) indicated below.

 

	 	ALBANY MOLECULAR RESEARCH, INC.
	 	 
	 	By:	/s/ Thomas E. D’Ambra
	 	Thomas E. D’Ambra, Ph.D.
	 	President and Chief Executive Officer
	 	 
	 	Date: October 16, 2013

 

I HAVE READ THIS AGREEMENT THOROUGHLY,
UNDERSTAND ITS TERMS AND HAVE SIGNED IT KNOWINGLY AND VOLUNTARILY. I UNDERSTAND THAT THIS AGREEMENT IS A LEGAL DOCUMENT.

 

		 
	/s/ Bruce J. Sargent	 
	Bruce J. Sargent, Ph.D.	 
	 	 
	Date: October 16, 2013	 

 

    	9

    	 

    

 

CONFIRMATION OF RELEASE PROVISION IN
SEPARATION AGREEMENT

 

I, Bruce J. Sargent,
acknowledge and agree:

 

1.          I
executed a Separation Agreement dated October 16, 2013 with the advice of counsel.

 

2.          Section
3(a) of the Separation Agreement includes a General Release which released Claims (as defined in the Separation Agreement) against
the Releasees (as defined in the Separation Agreement) and was applicable to Claims through the date of execution of the Separation
Agreement.

 

3.          As
provided in Section 3(b) of the Separation Agreement, I confirm that, from the date of execution of the Separation Agreement through
the Termination Date (as defined in the Separation Agreement), Section 3(a) of the Separation Agreement remains in effect and also
applies to any and all Claims which may have accrued against the Releasees (other than excepted rights described in Section 3(a)
of the Separation Agreement) during that period.

 

	Bruce Sargent	 	Date

 

    	10

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