Document:

EX-10.1 EMPLOYMENT AGREEMENT 07/16/07

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of July 16, 2007 (the
“Effective Date”) by and between Luminex Corporation, a Delaware corporation (“Luminex”) and
Douglas C. Bryant (“Executive”).

RECITAL

     WHEREAS, Executive is to be employed as the Executive Vice President and Chief Operating
Officer for Luminex;

     WHEREAS, Luminex and Executive wish to document the terms of the employment of Executive in
such capacity; and

     WHEREAS, Executive has represented to Luminex and Luminex has relied on Executive’s
representation that the execution of this Agreement by Executive, and the provision of services by
Executive to Luminex as contemplated in this Agreement, will not conflict with, or cause Executive
or any other person or entity to be in breach of, (i) any other contract to which Executive is a
party or (ii) any duty which Executive may owe to any other person or entity.

AGREEMENT

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

	        1.	 	Duties.

               1.1 Duties. During the term of this Agreement (including all renewal periods, if any,
the “Term”), Executive agrees to be employed by and to serve as Executive Vice President and Chief
Operating Officer and Luminex agrees to employ and retain Executive in such capacity subject to the
provisions of this Agreement. Executive shall have such powers, authority and duties, and shall
render such services of executive and administrative character, or act in such other capacity for
Luminex, as the Chief Executive Officer or the Board of Directors of Luminex (the “Board”) shall
from time to time lawfully direct and Executive shall report directly to the Chief Executive
Officer of Luminex. Executive shall devote all of his business time, energy, and skill to the
business of Luminex;

	        2.	 	Term and Termination.

               2.1 Term. Subject to Section 2.2, the term of employment of Executive by Luminex
shall be two (2) years commencing on the Effective Date and shall thereafter automatically renew
for successive additional one-year terms unless either party provides the other with written notice
of its intent not to renew this Agreement at least sixty (60) days prior to the end of the Term
(unless terminated earlier pursuant to the provisions of this Agreement).

 

 

               2.2 Termination of Employment.

               
     2.2.1 Termination For Cause. “Termination For Cause” shall mean the termination by
Luminex of Executive’s employment with Luminex as the result of Executive’s material fraud upon
Luminex or Executive’s continued material breach of this Agreement after receipt of written notice
from Luminex specifying such breach and failure by Executive to cure such breach within fifteen
(15) days from receipt of such notice. Executive’s inability to perform his obligations under this
Agreement despite his best efforts as a result of a permanent or temporary disability (as evidenced
by a written determination from a physician chosen by Executive and reasonably acceptable to
Luminex) shall not result in a Termination For Cause. In the event that Executive fails to cure
the breach within the fifteen (15) day cure period, the termination shall be effective as of the
date that Luminex notifies Executive of his termination following the expiration of the fifteen
(15) day cure period. Upon any Termination For Cause, Executive shall be paid the Accrued
Obligations (defined below) within three (3) business days following the effective date of
termination.

                    2.2.2 Termination Other Than For Cause. “Termination Other Than For Cause” shall mean
(i) termination by Luminex of Executive’s employment with Luminex for any reason other than
Termination For Cause, Termination by Reason of Death, Termination by Reason of Incapacity or
Termination Upon Expiration of Agreement or (ii) termination by Executive upon constructive
termination of Executive’s employment with Luminex by reason of (A) a reduction in Executive’s Base
Salary (defined below); (B) a reduction in Executive’s title from Chief Operating Officer for
Luminex (whether by reason of Executive’s removal from any of such offices or Luminex’s failure to
reappoint Executive to any of such offices); (C) a Material Diminution (defined below); (D) a
requirement that Executive change his principal place of business to a location that is outside the
Office Area (defined below), or (E) Luminex’s continued material breach of this Agreement after
receipt of written notice from Executive specifying such breach and failure by Luminex to cure such
breach within fifteen (15) days from receipt of such notice. Termination Other Than For Cause may
be effected by Luminex at any time by providing Executive with written notice of such termination.
The termination shall be effective as of the date of the notice or such later date as may be
determined by Luminex. Executive may also effect a Termination Other Than For Cause upon written
notice to Luminex at any time any of the conditions for constructive termination set forth in
clause (ii) above (including without limitation, if applicable, the expiration of the cure period)
have been met. Upon any Termination Other Than For Cause, Executive shall be paid (i) within three
(3) business days following the effective date of termination the amount of the Accrued Obligations
and (ii) all severance compensation provided in Section 4.1. For purposes of this Agreement,
“Material Diminution” means a material diminution by Luminex of Executive’s duties, powers,
authority, functions or responsibilities without Executive’s consent, such that Executive is left
with such duties, powers, authority, functions and responsibilities (when viewed in the aggregate)
that are materially diminished compared to both (i) those duties, powers, authority, functions and
responsibilities conferred upon Executive at the Effective Date and (ii) those duties, powers,
authority, functions and responsibilities that are most typically conferred upon the chief
operating officer of companies having both (i) a chief operating officer and (ii) revenues
comparable to Luminex (based on the revenues of Luminex at the time of determination). Luminex and
Executive agree that in the event there is an ambiguity with

- 2 -

 

 

respect to the interpretation or application of the definition of “Material Diminution”, such
ambiguity shall be resolved according to the reasonable interpretation of such definition most
favorable to Luminex. For purposes of this Agreement, “Office Area” means the geographical area
within a 40 mile radius of Luminex’s current principal office at 12212 Technology Blvd., Austin,
Texas.

               
     2.2.3 Actual Voluntary Termination. “Actual Voluntary Termination” shall mean
termination by Executive of Executive’s employment with Luminex for any reason other than
Termination For Cause, Termination Other Than For Cause, Termination by Reason of Death or
Termination by Reason of Incapacity. In the event of an Actual Voluntary Termination, Executive
shall be paid within fifteen (15) business days following the effective date of termination the
amount of the Accrued Obligations.

               
     2.2.4 Termination by Reason of Incapacity. If, during the Term, Executive shall
become Permanently Disabled (defined below), Luminex may terminate Executive’s employment with
Luminex effective on the earliest date permitted under applicable law, if any, and such termination
shall be deemed “Termination by Reason of Incapacity”. Upon termination of employment under this
Section, Executive shall be paid (i) within three (3) business days following the effective date of
termination the amount of the Accrued Obligations and (ii) all severance compensation provided in
Section 4.2. As used herein, Executive shall be deemed “Permanently Disabled” if Executive is (i)
collecting long-term disability payments under a long-term disability plan established for the
benefit of Luminex’s employees or executives generally or a reasonably similar plan or (ii) if, and
only if, no such long-term disability plan is in effect at the time of determination, a physician
selected by Luminex and reasonably acceptable to Executive makes a written determination that
Executive is unable to perform his obligations under this Agreement despite his best efforts by
reason of any medically determinable physical or mental impairment that can be expected to result
in death or that has lasted or can be expected to last for a continuing period of not less than 12
months.

               
     2.2.5 Termination by Reason of Death. In the event of Executive’s death during the
Term, Executive’s employment with Luminex shall be deemed to have terminated as of the date on
which his death occurs and the estate of Executive shall be paid (i) within fifteen (15) days
following the effective date of termination the amount of the Accrued Obligations and (ii) all
severance compensation provided in Section 4.3.

               
     2.2.6 Termination Upon Expiration of Agreement. In the event that Luminex refuses for
any reason to extend this Agreement by giving written notice at least 60 days prior to the initial
or any renewal period as set forth in Section 2.1, Executive shall be paid (i) within three (3)
business days following the effective date of termination the amount of the Accrued Obligations and
(ii) all severance compensation provided in Section 4.4. In the event that Executive refuses for
any reason (except as otherwise provided herein) to extend this Agreement by giving written notice
at least 60 days prior to the initial or any renewal period as set forth in Section 2.1, the
termination shall be deemed an Actual Voluntary Termination.

               
     2.2.7 Termination of Relationship with Affiliated Entities. Unless agreed by Luminex
(or a subsidiary thereof) and Executive in a separate written agreement (other

- 3 -

 

than corporate minutes, resolutions, charter documents, bylaws and partnership agreements),
upon the termination of Executive’s employment with Luminex for any reason, Executive shall tender
a written resignation of any positions he may have with Luminex and any and all of Luminex’s direct
and indirect subsidiaries.

               
     2.2.8 Definition of Accrued Obligations. As used in this Agreement, “Accrued
Obligations” means all accrued but unpaid salary, accrued but unpaid vacation, sick leave, and
similar pay (all determined in accordance with Luminex’s policies then in effect), and any
appropriate business expenses incurred by Executive in connection with his duties hereunder, all to
the date of termination.

	      3.	 	Salary, Benefits and Bonus Compensation.

          3.1 Base Salary. As payment for the services to be rendered by Executive as provided
in Section 1 and subject to the terms and conditions of Section 2, Luminex agrees to pay to
Executive a “Base Salary” at the rate of $13,333.33 per each semi-monthly pay period or $320,000
per annum (or such greater amount as may be determined from time to time by the Board or the
Compensation Committee thereof) payable in accordance with the then-current payroll policies of
Luminex.

          3.2 Annual Bonus. Executive shall be eligible to receive a bonus each year in an
amount up to at least fifty percent (50%) of your then-current Base Salary (or such other amount as
may otherwise be determined by the Company’s Board of Directors), subject to the performance
criteria established annually by the Company’s Board of Directors and payable during the first
quarter of the following year or otherwise as consistent with the timing of other employee bonuses.
The Board is under no obligation to declare, and Luminex is under no obligation to pay, any bonus
to Executive under the terms of this Agreement. In the event Executive and Luminex are parties to
a written agreement or plan executed by both Luminex and Executive that governs bonus arrangements,
and the provisions thereof conflict with this Section 3.2, the terms of such other written
agreement or plan shall supersede this Section 3.2.

          3.3 Change in Control. In the event that both (i) a Change in Control (defined
below) of Luminex occurs during the Term and (ii) Executive’s employment with Luminex (or, as
applicable, its successor in interest) terminates for any reason (including without limitation an
Actual Voluntary Termination by Executive) at any time within six (6) months following the
occurrence of the Change in Control of Luminex, in lieu of any Severance Compensation then owed or
that otherwise would be owed in the future to Executive under Section 4 of this Agreement, Luminex
(or its successor in interest) shall pay Executive both the Accrued Obligations and a lump sum
payment (the “Change in Control Payment”) in an aggregate amount equal to the sum of (i) the Bonus
Amount (defined below), plus (ii) an amount equal to Executive’s annual Base Salary (at the highest
rate in effect during the period beginning six months immediately prior to the effective date of
the Change of Control through the date of termination) within three (3) business days after the
termination of Executive’s employment. In the interest of clarity, Luminex and Executive agree
that, upon the termination of Executive’s employment at any time within six (6) months following
the occurrence of the Change in Control of Luminex, the provisions of Sections 4.1, 4.2, 4.3, 4.4,
and 4.6 shall automatically be deemed

- 4 -

 

 

null and void and shall not apply with respect to any termination of Executive’s employment
(whether such termination is effected in connection with the Change in Control of Luminex or at any
time in the future following the Change in Control of Luminex), and under no circumstances shall
Luminex ever be obligated to pay Executive both a Change in Control Payment and Severance
Compensation under Section 4. For purposes of this Agreement, a “Change in Control” of Luminex
shall be deemed to have occurred if, after the date of this Agreement:

     (A) any “Person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) (other than an Approved Person (as defined below))
becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of a majority or more of the then outstanding Common Stock of Luminex (“Common
Stock”) (such Person, an “Acquiring Person”); or

     (B) Luminex merges or consolidates with any other corporation or other entity, in each case
other than a merger or consolidation which results in the voting securities of Luminex outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least a majority of the combined
voting power of the voting securities of Luminex or such surviving entity outstanding immediately
after such merger or consolidation; or

     (C) Luminex sells or disposes of all or substantially all of Luminex’s assets in one
transaction or a series of related transactions; or

     (D) Luminex files a periodic or current report or proxy statement with the Securities and
Exchange Commission (the “SEC”) disclosing that a “change in control” (as such term is used in Item
1 of Form 8-K promulgated by the SEC) of Luminex has occurred; or

     (E) If, as a result of nominations made by a person or group other than the Board of Directors
of Luminex, individuals who prior to such nominations constitute the Directors of Luminex cease for
any reason to constitute at least a majority thereof within the two year period following such
nominations.

     As used in this Agreement, “Approved Person” means (1) an employee benefit plan of Luminex (or
a trustee or other fiduciary holding securities for such a plan), or (2) a corporation owned,
directly or indirectly, by the stockholders of Luminex in substantially the same proportions as
their ownership of stock of Luminex, or (3) a Person not less than a majority of whose voting
securities are Beneficially Owned by Luminex after giving effect to the transaction.

     As used in this Agreement, “Bonus Amount” means the annual bonus (if any) received or to be
received by Executive under Section 3.2 in respect of the then most recently completed calendar
year, or if no determination concerning bonuses has been made for the most recently completed
calendar year, then the annual bonus (if any) for the previous calendar year.

     Any options (“Options”) granted (including without limitation Options that may be granted in
the future) and restricted stock (“Restricted Stock”) issued (including without

- 5 -

 

 

limitation Restricted Stock that may be issued in the future) to Executive pursuant to any
incentive plan of Luminex shall immediately vest upon a Change in Control. Luminex shall take no
action to facilitate a transaction involving a Change in Control, including without limitation
redemption of any rights issued pursuant to any rights agreement, unless it has taken such action
as may be necessary to ensure that Executive has the opportunity to exercise all Options he may
then hold, and obtain certificates containing no restrictive legends in respect of any Restricted
Stock he may then hold, at a time and in a manner that shall give Executive the opportunity to sell
or exchange the securities of Luminex acquired upon exercise of his Options and upon receipt of
unrestricted certificates for shares of Common Stock in respect of his Restricted Stock, if any
(collectively, the “Acquired Securities”), at the earliest time and in the most advantageous manner
any holder of the same class of securities as the Acquired Securities is able to sell or exchange
such securities in connection with such Change in Control. Luminex acknowledges that its covenants
in the preceding sentence (the “Covenants”) are reasonable and necessary in order to protect the
legitimate interests of Luminex in maintaining Executive as one of its employees and that any
violation of the Covenants by Luminex would result in irreparable injuries to Executive, and
Luminex therefore acknowledges that in the event of any violation of the Covenants by Luminex or
its directors, officers or employees, or any of their respective agents, Executive shall be
entitled to obtain from any court of competent jurisdiction temporary, preliminary and permanent
injunctive relief in order to (i) obtain specific performance of the Covenants, (ii) obtain
specific performance of the exercise of his Options, delivery of certificates containing no
restrictive legends in respect of his Restricted Stock and the sale or exchange of the Acquired
Securities in the advantageous manner contemplated above or (iii) prevent violation of the
Covenants; provided nothing in this Agreement shall be deemed to prejudice Executive’s rights to
damages for violation of the Covenants. In the event that the terms of any separate written
agreement concerning Options granted or Restricted Stock issued to Executive conflict with the
terms of this paragraph, the terms of this paragraph shall control.

          3.4 Additional Benefits. During the Term, Executive shall be entitled to the
following fringe benefits:

          
     3.4.1 Benefits and Vacation. Executive shall be eligible to participate in such of
Luminex’s benefits and deferred compensation plans as are now generally available or later made
generally available to executive officers of Luminex. A termination or expiration of this
Agreement for any reason or for no reason shall not affect any rights which Executive may have
pursuant to any agreement, policy, plan, program or arrangement of Luminex providing Executive
benefits (including under any stock option agreement or bonus plan or agreement which may exist),
which rights shall be governed by the terms thereof. Executive shall be entitled to three (3)
weeks paid vacation each calendar year (prorated for partial years). Unless approved in advance by
the Board or a committee thereof, accrued vacation not taken in any applicable period shall not be
carried forward or used in any subsequent period.

- 6 -

 

 

     
          3.4.2 Reimbursement for Expenses.

     
          
     3.4.2.1 Incidental Expenses. Luminex shall reimburse Executive for reasonable and
properly documented out-of-pocket business and/or entertainment expenses incurred by Executive in
connection with his duties under this Agreement. Any such expenses shall be submitted by Executive
to Luminex on a periodic basis and will be paid in accordance with standard Luminex policies and
procedures.

     
               3.4.2.2 Moving Expenses. In the event of the relocation of Luminex’s headquarters to
a location that is outside the Office Area and Executive elects to relocate, Luminex shall (i)
reimburse Executive for any reasonable, out-of-pocket and adequately documented moving expenses
incurred by Executive in connection with the transfer of his residence and (ii) pay to an Executive
an amount of cash reasonably calculated by Luminex to negate adverse income tax consequences to
Executive of the foregoing reimbursement.

     4. Severance Compensation.

          4.1 Severance Compensation in the Event of a Termination Other Than For Cause. In the
event Executive’s employment is terminated as a result of a Termination Other Than for Cause,
Executive shall be paid (subject to Section 4.6) the Severance Compensation (defined below).

          4.2 Severance Compensation for Termination by Reason of Incapacity. In the event
Executive’s employment is terminated as a result of a Termination by Reason of Incapacity,
Executive shall be paid (subject to Section 4.6) the difference of (i) the Severance Compensation
less (ii) any payment or payments received by Executive during the twelve (12) month period from
the time of termination under any long-term disability plan in effect that provides benefits to
Executive.

          4.3 Severance Compensation for Termination by Reason of Death. In the event
Executive’s employment is terminated as a result of Executive’s death, the estate of Executive
shall be paid the Severance Compensation.

          4.4 Severance Compensation In the Event Of A Failure Of Luminex To Renew This
Agreement. In the event Luminex fails or otherwise refuses for any reason to extend this
Agreement beyond the Term and any extensions thereof, Executive shall be paid (subject to Section
4.6) the Severance Compensation.

          4.5 No Severance Compensation Upon Other Termination. In the event of an Actual
Voluntary Termination or Termination For Cause, Executive shall not be paid any severance
compensation.

          4.6 Conditions to Payment; Sole Remedy. Executive shall not be entitled to receive
any compensation or other payment pursuant to Sections 4.1, 4.2 or 4.4 unless Executive shall have
executed and delivered to Luminex a release substantially in the form attached hereto as
Exhibit “A” and, provided Luminex has also signed such release within two (2) business days

- 7 -

 

 

of execution and delivery by Executive, all revocation and waiting periods applicable to such
release have expired (if Luminex fails to sign such release, then such revocation and waiting
periods shall not apply). In addition, in the event that Executive breaches any of the restrictive
covenants set forth in Article 5 at any time, Luminex shall be entitled to discontinue any
compensation or other payments pursuant to Sections 4.1, 4.2 or 4.4 (provided, however, that if it
is finally determined by a court of competent jurisdiction or an arbitrator that Luminex asserted
in bad faith that Executive breached any of the restrictive covenants set forth in Article 5, the
payments of the Severance Compensation shall be extended for two months for each calendar month
that payments were delayed. The compensation to be paid to Executive pursuant to Sections 4.1,
4.2, 4.3 or 4.4 shall represent the sole and exclusive remedy of Executive in connection with the
termination of his employment and this Agreement upon a Termination Other Than for Cause, a
Termination by Reason of Incapacity, a termination in connection with Executive’s death, or a
refusal by Luminex to extend this Agreement beyond the Term and any extensions thereof.

          4.7 Definition of Severance Compensation. As used in this Agreement, “Severance
Compensation” means an amount equal to the sum of (i) the Bonus Amount plus (ii) an amount equal to
Executive’s annual Base Salary (at the highest rate in effect for the six month period immediately
prior to the date of termination), paid in semi-monthly installments for a period of twelve (12)
months from the date of termination. In addition, as part of the Severance Compensation, Luminex
also shall pay (until the earlier of (A) the first annual anniversary of the termination of this
Agreement or (B) the date that Executive is eligible to be covered under a comparable or more
favorable health plan of another Person) (i) COBRA payments in respect of the continuation of
health benefits for Executive, his spouse and his children and (ii) payments to fund dental
coverage for Executive, his spouse and his children comparable to the dental coverage that they
would have received if Executive had continued as an employee of Luminex.

     5. Protection of Luminex.

          5.1 Non-Competition. Ancillary to the otherwise enforceable agreements set forth in
this Agreement, Executive agrees that during Executive’s employment with Luminex and for a period
of one year following termination of employment, whether such termination occurs at the insistence
of Executive or Luminex for any reason, Executive shall not compete directly or indirectly in any
way with the business of Luminex anywhere in the world where Luminex conducted business during the
Term. For purposes of this Agreement, “compete directly or indirectly in any way with the business
of Luminex” means to become an employee, consultant, advisor, manager, member, director of or
beneficially own more than three percent of any individual, company or entity that competes with
Luminex in the Core Business (defined below) at the time of determination. Executive agrees that
the assertion or existence of any claim by Executive against Luminex shall not be a defense to the
enforcement of this paragraph by injunction or otherwise. As used in this Agreement, “Core
Business” means the development, manufacturing and/or marketing of multiplexing biological testing
technologies with applications in the life-sciences industry.

     
     5.2 Nonsolicitation. Ancillary to the otherwise enforceable agreements set forth in
this Agreement, Executive agrees that, for a period of one (1) year subsequent to the

- 8 - 

 

termination of Executive’s employment with Luminex, whether such termination occurs at the
insistence of Executive or Luminex for any reason, Executive shall not recruit, hire, or attempt to
recruit or hire, directly or by assisting others, any other employees of Luminex, nor shall
Executive contact or communicate with any other employees of Luminex for the purpose of inducing
other employees to terminate their employment with Luminex. For purposes of this covenant, “other
employees of Luminex” shall refer to employees who are still actively employed by, or doing
business with, Luminex or a subsidiary of Luminex at the time of the attempted recruiting or
hiring.

          5.3 Remedies. Due to the irreparable and continuing nature of the injury which would
result from a breach of the covenants described in Sections 5.1 and 5.2, Executive agrees that
Luminex may, in addition to any remedy which Luminex may have at law or in equity, apply to any
court of competent jurisdiction for the entry of an immediate order to restrain or enjoin the
breach of this covenant and to otherwise specifically enforce the provisions of the covenants set
forth in Sections 5.1 and 5.2.

     
     5.4 Acknowledgment. Executive acknowledges and agrees that the restrictions set forth
above are ancillary to an otherwise enforceable agreement and supported by independent valuable
consideration as required by Tex. Bus. & Comm. Code Ann. § 15.50. Executive further
acknowledges and agrees that the limitations as to time, geographical area, and scope of activity
to be restrained by Sections 5.1 and 5.2 are reasonable and acceptable to Executive, and do not
impose any greater restraint than is reasonably necessary to protect the goodwill and other
business interests of Luminex.

     
     5.5 Reformation and Severance. If a judicial determination is made that any of the
provisions of the above restriction constitutes an unreasonable or otherwise unenforceable
restriction against Executive, it shall be rendered void only to the extent that such judicial
determination finds such provisions to be unreasonable or otherwise unenforceable. In this regard,
the parties hereby agree that any judicial authority construing this Agreement shall be empowered
to sever any portion of the prohibited business activity from the coverage of this restriction and
to apply the restriction to the remaining portion of the business activities not so severed by such
judicial authority. Moreover, notwithstanding the fact that any provisions of this restriction are
determined by a court not to be specifically enforceable through injunctive relief, Luminex shall
nevertheless be entitled to seek to recover monetary damages as a result of the breach of any
provision which is not reformed by a court. The time period during which the restrictions shall
apply shall be tolled and suspended as to Executive for a period equal to the aggregate quantity of
time during which Executive violates such prohibitions in any respect.

     
     5.6 Confidential Information and Trade Secrets. As used herein, “Confidential
Information” means any data or information that is important, competitively sensitive, and not
generally known by the public or persons involved in the biological testing or life sciences
industries, including, but not limited to, Luminex’s business plans, Prospective Customers,
training manuals, proprietary software, product development plans, bidding and pricing procedures,
market plans and strategies, projections, internal performance statistics, financial data,
confidential personnel information concerning employees of Luminex, operational or administrative
plans, policy manuals, and terms and conditions of contracts and agreements.

- 9 -

 

 

The term “Confidential Information” shall not apply to information which is (i) already in
Executive’s possession (unless such information was obtained by Executive from Luminex in the
course of Executive’s employment by Luminex); (ii) received by Executive from a third party with,
to Executive’s knowledge, no restriction on disclosure or (iii) required to be disclosed by any
applicable law or by an order of a court of competent jurisdiction.

     Executive recognizes and acknowledges that the Confidential Information constitutes valuable,
special and unique assets of Luminex and its affiliates. Except as required to perform Executive’s
duties as an Executive of Luminex, until such time as they cease to be Confidential Information
through no act of Executive in violation of this Agreement, Executive will not use or disclose any
Confidential Information of Luminex. Upon the request of Luminex and, in any event, upon the
termination of this Agreement for any reason, Executive will surrender to Luminex (i) all
memoranda, notes, records, drawings, manuals or other documents pertaining to Luminex’s business
including all copies and/or reproductions thereof and (ii) all materials involving any Confidential
Information of Luminex.

          5.7 Preservation of Luminex Property. Executive acknowledges that from time to time
in the course of employment with Luminex, Executive has had the opportunity to inspect and use
certain property of Luminex, both tangible and intangible, including but not limited to files,
records, documents, drawings, specifications, lists, equipment, graphics, designs, and similar
items relating to the business of Luminex. Executive acknowledges and agrees that all such
property, including but not limited to any and all copies thereof, whether prepared by Executive or
otherwise in the possession of Executive, are and shall remain the exclusive property of Luminex,
that Executive shall have no right or proprietary interest in such property and that Executive will
safeguard and return to Luminex all such property upon the earlier of (i) Luminex’s request and
(ii) the termination of Executive’s employment with Luminex.

          5.8 Assignment of Inventions to Luminex. All computer software, compilations,
programs, improvements, inventions, notes, copyrightable works, and opportunities for additional
Luminex business, made, fixed, conceived, or acquired by Executive during the Term are exclusively
owned by Luminex, are Luminex’s works for hire, and fully assigned to Luminex including without
limitation all rights to renewals, extensions, causes of action, reproduce, prepare derivative
works, distribute, display, perform, transfer, make, use and sell and may never be copied, used, or
disclosed without Luminex’s express written consent. Executive will sign on request any documents
affirming the same for any particular item. In addition, Executive agrees to execute Company’s
standard Confidentiality and IP Assignment Agreement by the Effective Date.

     
     5.9 Notice to Subsequent Employers. Executive agrees that, prior to commencing any
new employment in the Core Business within twelve months after the termination of this Agreement,
Executive will furnish the new employer with a copy of this Agreement. Executive also agrees that
Luminex may advise any new or prospective employer of the existence and terms of this Agreement and
furnish the employer with a copy of this Agreement.

- 10 -

 

 

     6. Disclosure of Investments. Commencing upon Executive’s execution of this Agreement
and at all times during the Term, Executive shall keep the Board informed in writing of the nature
and extent of Executive’s investments, stock holdings, or retention as a director, advisor or any
similar interest in any business or enterprise involved in the Core Business other than Luminex;
provided, however, that Executive shall not be required to disclose any such investments or stock
holdings that constitute less than 1% of such entity’s total obligations or total voting power.

     7. Arbitration.

     
     7.1 Exclusive Remedy. Arbitration shall be the sole and exclusive remedy for
resolving any claim or dispute which cannot be mutually resolved between the parties to this
Agreement with the exception of disputes arising out of Executive’s obligations under Article 5 or
disputes arising out of Luminex’s obligations under the last paragraph of Section 3.3, which are
not subject to this arbitration provision; provided however, that the parties hereto agree that
they may bring action in any court of competent jurisdiction to enforce any award granted pursuant
to arbitration or to otherwise enforce this Article 7. This includes, but is not limited to,
termination, interpretation or application of this Agreement or any other agreement or policy of
Luminex, any claim of violation of law relating to the employment relationship, including, without
limitation, any claim of employment discrimination or sexual harassment, or harassment based on any
other prohibited basis, or any claim by Luminex against Executive. This Agreement is a waiver of
the right to trial by a jury or court.

     
     7.2 Limitations. The request for arbitration must be made within one (1) year from
the date of the occurrence giving rise to the dispute or claim; or, in the event of a statutory
claim, the time set forth by statute.

          7.3 Rules and Procedures. The arbitration will be conducted under the rules and
procedures for arbitration of employment disputes of the American Arbitration Association. The
arbitration shall take place in Austin, Texas unless the parties mutually agree to another
location.

          7.4 Arbitrator’s Authority. Upon finding that a claim is meritorious or in favor of
one of the parties to the dispute, the arbitrator or arbitrators shall have the authority to order
legal and equitable remedies appropriate as permitted by law.

          7.5 Expenses. Costs of obtaining and paying the arbiter and the costs associated with
conducting the arbitration, including obtaining a facility to be used during the arbitration, shall
be paid by Luminex. Other costs of the arbitration or any litigation associated with any dispute
arising under or in connection with this Agreement including, without limitation, reasonable
attorneys’ and experts’ fees and expenses of Luminex and the Executive shall be borne by the party
incurring such expense unless the arbiter or court of law, as the case may be, awards costs to one
of the parties.

- 11 -

 

 

     8. Miscellaneous.

          8.1 Waiver. The waiver of the breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of the same or other provision hereof.

          8.2 Entire Agreement; Modifications. Except as otherwise provided herein, this
Agreement represents the sole, entire, and complete understanding among the parties with respect to
the subject matter hereof, and this Agreement supersedes any and all prior understandings,
agreements, plans and negotiations, whether written or oral, with respect to the subject matter
hereof, including without limitation any understandings, agreements or obligations respecting any
past or future compensation, bonuses, reimbursements or other payments to Executive from Luminex.
All modifications to the Agreement must be in writing and signed by both Executive and Luminex.

     
     8.3 Notices. All notices and other communications under this Agreement shall be in
writing and shall be given by facsimile or first class mail, certified or registered with return
receipt requested, and shall be deemed to have been duly given three business days after mailing or
one business day after transmission of a facsimile (with confirmation of receipt) to the respective
persons named below:

	 	 	 	 	 
	 	 	If to Luminex:

	 	Luminex Corporation
	 	 	 

	 	Attn: General Counsel
	 	 	 

	 	12212 Technology Blvd.
	 	 	 

	 	Austin, Texas 78727
	 	 	 

	 	Fax: (512) 219-6325
	 	 	 
	 	 
	 	 	If to Executive:

	 	Mr. Douglas C. Bryant
	 	 	 

	 	6327 Thackery Lane
	 	 	 

	 	Libertyville, IL 60048

Any party may change such party’s address for notices by notice duly given pursuant to this Section
8.3.

     
     8.4 Headings. The Section headings herein are intended for reference and shall not by
themselves determine the construction or interpretation of this Agreement.

     
     8.5 Governing Law; Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas. Subject in all respects to Section 7 generally and
Section 7.3 in particular, any dispute arising out of or relating to this Agreement may be brought
in a court of competent jurisdiction located in Austin, Texas, and both of the parties to this
Agreement irrevocably submit to the exclusive jurisdiction of such courts in any such dispute,
waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that
all claims in respect of the dispute shall be heard and determined only in any such court, and
agrees not to bring any dispute arising out of or relating to this Agreement in any other court.
The parties agree that either or both of them may file a copy of this paragraph with any court as
written evidence of the knowing, voluntary and bargained agreement among the

- 12 -

 

 

parties irrevocably to waive any objections to venue or to convenience of forum. Process in
any dispute may be served on any party anywhere in the world.

     
     8.6 Severability. Should any court of competent jurisdiction determine that any
provision of this Agreement is illegal or unenforceable to any extent, such provision shall be
enforced to the extent permissible and all other provisions of this Agreement shall continue to be
enforceable to the extent possible.

     
     8.7 Counterparts. This Agreement may be executed in one or more counterparts, all of
which taken together shall constitute one and the same Agreement.

     
     8.8 Assignment. Neither this Agreement nor any duties or obligations hereunder may be
assigned by either party without the other party’s prior written consent; provided, however, that
Luminex may assign this Agreement to either (i) a wholly-owned subsidiary of Luminex (provided,
however, that such assignment shall not relieve Luminex of its obligations hereunder) or (ii) a
Person acquiring substantially all of Luminex’s assets if such acquisition would constitute a
Change in Control.

     
     8.9 Withholding. All compensation and benefits payable to Executive hereunder shall
be reduced by all federal, state, local and other withholdings and similar taxes and payments
required by applicable law.

- 13 -

 

 

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

	 	 	 	 	 
	 	LUMINEX CORPORATION

 	 
	 	By:  	/s/
Patrick J. Balthrop
 	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	
/s/ Douglas C. Bryant	 
	 	DOUGLAS C. BRYANT 	 
	 	 	 
	 

- 14 -EX-10.1

 

EXHIBIT 10.1

PAYCHEX, INC.

2002 STOCK INCENTIVE PLAN

(as amended and restated effective October 12, 2005)

2007-2008 OFFICER PERFORMANCE INCENTIVE

AWARD AGREEMENT

	 	 	 
	Participant Name
	 	Jonathan J. Judge
	Award Date
	 	July 12, 2007
	Performance Period
	 	June 1, 2007 through May 31, 2008
	Total Target Value
	 	$1,830,000

     1. Grant of Award. This 2007-2008 Officer Performance Incentive Award Agreement (this
“Award Agreement”) sets forth the terms and conditions of the Performance Award (the “Award”)
granted to you by the Governance and Compensation Committee (the “Committee”) of the Board of
Directors of Paychex, Inc. (the “Company”) under the Company’s 2002 Stock Incentive Plan, as
amended and restated effective October 12, 2005 (the “Plan”). The Award is subject to all of the
provisions of the Plan, which is hereby incorporated by reference and made a part of this Award
Agreement. The capitalized terms used in this Award Agreement are defined in the Plan. In the
event of any conflict among the provisions of the Plan and this Award Agreement, the provisions of
the Plan will be controlling and determinative.

     2. Target Value and Components. The Total Target Value of the Award is set forth
above and consists of three components: (a) the Revenue Component; (b) the Operating Income
Component; and (c) the Operating Income to Revenue Ratio Component. The Total Target Value or the
value of any of its components may be reduced by the Committee in its sole discretion.

     3. Requirement of Employment. Your rights to the Actual Value (as that term is
defined below) under Section 5, shall be provisional and shall be canceled in whole or in part, as
determined by the Committee in its sole discretion if your continuous employment with the Company
terminates for any reason other than death or Disability on or before the last day of the
Performance Period. Whether and as of what date your employment with the Company shall terminate
if you are granted a leave of absence or commence any other break in employment intended by your
employer to be temporary, shall be determined by the Committee in its sole discretion. In the
event of your death or Disability, you or your estate shall be entitled to receive a pro-rata
payment of the Actual Value of the Award based on the ratio of the number of days from the
beginning of the Performance Period through the date of your death or Disability and the total
number of days in the Performance Period.

 

 

     4. Determination of Value.

          (a) Potential Value and Actual Value. As soon as practicable after the last day of the
Performance Period and prior to the payment of the Award, the Committee shall determine the Revenue
Value as of the last day of the Performance Period, if any, as provided in Section 4(b), the
Operating Income Value as of the last day of the Performance Period, if any, as provided in Section
4(c), and the Operating Income to Revenue Ratio Value as of the last day of the Performance Period,
if any, as provided in Section 4(d). The sum of the Revenue Value, Operating Income Value and the
Operating Income to Revenue Ratio Value shall be the Potential Value of the Award as so determined.
The Committee may, in its sole discretion, then reduce, but not increase, the Potential Value to
determine the Actual Value of the Award.

          (b) Revenue Value. The Revenue Value shall be the Total Target Value, multiplied by the
Revenue Payment Percentage from Exhibit A, based on the Revenue for the Performance Period.
“Revenue” for the Performance Period means Total Service Revenue for the Performance Period.

          (c) Operating Income Value. The Operating Income Value shall be the Total Target Value,
multiplied by the Operating Income Payment Percentage from Exhibit A, based on the Operating Income
for the Performance Period. “Operating Income” means Operating Income, less Interest on Funds Held
for Clients, for the Performance Period.

          (d) Operating Income to Revenue Ratio Value. The Operating Income to Revenue Ratio Value
shall be the Total Target Value, multiplied by the Operating Income to Revenue Ratio Payment
Percentage from Exhibit A, based on the Operating Income to Revenue Ratio for the Performance
Period. “Operating Income to Revenue Ratio” for the Performance Period means (i) Operating Income,
less Interest on Funds Held for Clients, for the Performance Period, over (ii) Total Service
Revenue for the Performance Period.

          (e) Calculation. In determining the Potential Value of the Award, “Total Service Revenue,”
“Operating Income” and “Interest on Funds Held for Clients” for a specified period shall mean the
total service revenue, operating income and interest on funds held for clients for such period,
respectively, each as reported in the Company’s annual audited financial statements for such
period, but in each case excluding the following (each, an “Exclusion Item”): asset write-downs;
litigation or claim judgments or settlements; changes in tax law, accounting principles or other
such laws or provisions affecting reported results; severance, contract termination and other costs
related to entering or exiting certain business activities; and gains or losses from the
acquisition or disposition of businesses or assets or from the early extinguishment of debt, or
other unusual items. In addition to its general authority to reduce the Potential Value, when
determining the Actual Value of the Award, the Committee may, in its sole discretion, take into
consideration the effect of the inclusion of one or more of the Excluded Items, provided, however,
that the Actual Value may not exceed the Potential Value as determined pursuant to this Section 4.

          (f) Committee’s Determinations Final. The Committee’s determination of the Revenue Value,
Operating Income Value, Operating Income to Revenue Ratio Value,

2

 

Potential Value and Actual Value pursuant to this Award Agreement shall be final, binding and
conclusive upon you and all persons claiming under or through you.

     5. Payment of Award. The Actual Value, as determined pursuant to Section 4, if any,
shall become payable to you in cash as promptly as practicable following the determination of such
amount by the Committee, but in no event later than the March 15th of the calendar year following
the calendar year in which the Performance Period ends (the “Payment Date”). Any payment made in
respect of the Award will be reduced by the amount of all taxes required by any governmental
authority to be withheld and paid over by the Company or any Affiliate to the governmental
authority on account of such payment.

     6. Miscellaneous.

          (a) Qualified Performance-Based Compensation. The Award is intended to qualify as “qualified
performance-based compensation” for purposes of Section 162(m) of the Code, and this Award
Agreement shall be interpreted and the Award shall be administered consistent with such intention.

          (b)
Section 409A. The Award is intended to be exempt from the requirements of Section 409A of
the Code, and this Award Agreement shall be interpreted and the Award shall be administered
consistent with such intention.

          (c) Amendment. Except as otherwise provided by the Plan, the Company may only alter, amend or
terminate the Award with your consent.

          (d) No Right to Employment. Neither the Plan, the granting of the Award nor this Award
Agreement gives you any right to remain in the employment of the Company or any Affiliate.

          (e) Nontransferable. The Award may not be sold, assigned, transferred, pledged or encumbered
in any way prior to the payment thereof, whether by operation of law or otherwise.

          (f) Governing Law. This Award Agreement shall be governed by and construed in accordance with
the laws of the State of New York, except as superseded by applicable federal law, without giving
effect to its conflicts of law provisions.

* * * * *

3

 

EXHIBIT A

(dollars in thousands)

Revenue Payment Percentage

	 	 	 
	Revenue	 	Payment Percentage
	$1,904,000
	 	7.50%
	$1,962,900
	 	25.00%
	$2,277,000
	 	45.00%

Operating Income Payment Percentage

	 	 	 
	Operating Income	 	Payment Percentage
	$675,500
	 	7.50%
	$696,400
	 	25.00%
	$807,800
	 	45.00%

Operating Income to Revenue Ratio Payment Percentage

	 	 	 
	Operating Income to Revenue Ratio	 	Payment Percentage
	34.4%
	 	15.00%
	35.5%
	 	50.00%
	41.2%
	 	90.00%

If an actual performance level falls between two performance levels shown on the above grids, then

the applicable payment percentage will be determined using straight-line interpolation.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]