MERIDIAN MEDICAL TECHNOLOGIES INC
EXHIBIT 10.22
<DOCUMENT>
<TYPE>EX-10.22
<SEQUENCE>4
<FILENAME>w64342exv10w22.htm
<DESCRIPTION>EXHIBIT 10.22
<TEXT>
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<P align="left"><FONT size="2"><B>EXHIBIT 10.22</B>
</FONT>

<P align="center"><FONT size="2"><B>EMPLOYMENT AGREEMENT</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This EMPLOYMENT AGREEMENT, dated as of December&nbsp;6, 2001, is made by and
between JAMES H. MILLER (the &#147;Executive&#148;) and MERIDIAN MEDICAL TECHNOLOGIES,
INC. (the &#147;Company&#148;), a Delaware corporation.
</FONT>
<P align="center"><FONT size="2"><B>RECITALS</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Executive and the Company have previously entered into an
employment agreement, dated November&nbsp;20, 1996 (the &#147;Former Agreement&#148;); and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Board of Directors of the Company (&#147;Board of Directors&#148;) has
determined that it is in the best interest of the Company&#146;s shareholders that
appropriate steps should be taken to reinforce and encourage the continued
dedication of the Executive to the Executive&#146;s assigned duties; and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, in order to induce the Executive to remain in the employ of the
Company and to induce the Executive to give the Executive&#146;s continued attention
and dedication to the Executive&#146;s assigned duties, the Company desires to enter
into, and the Executive wishes to accept, this Employment Agreement in
substitution for the Former Agreement;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound hereby, the Company
and the Executive do hereby agree as follows:
</FONT>
<P align="center"><FONT size="2">ARTICLE 1.<BR>
DEFINITIONS
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever the following terms are used below in this Employment Agreement,
they shall have the meaning specified below, and no other, unless the context
clearly indicates to the contrary. The masculine pronoun shall include the
feminine and neuter, and the singular the plural, where the context so
indicates.
</FONT>
<center>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Annual Bonus. &#147;Annual Bonus&#148; shall mean the greater of (a)
the annual bonus paid or payable by the Company to the Executive for
the fiscal year immediately preceding the Date of Termination and
(b)&nbsp;the average of the annual bonuses paid or payable to the
Executive for the three (3)&nbsp;fiscal years immediately preceding the
fiscal year in which the Date of Termination falls.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.2</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Board of Directors. &#147;Board of Directors&#148; shall have the
meaning provided in the second recital of this Agreement.<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.3</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Cause. &#147;Cause&#148; shall mean termination of employment with the
Company because of (i)&nbsp;the Executive&#146;s failure or refusal to
substantially perform the duties reasonably required of the
Executive by the Company (other than by reason of disability), after
reasonable demand for substantial performance is delivered by the
Company specifically identifying the manner in which the Company
believes the Executive has not performed his duties; (ii)&nbsp;the
commission by the Executive of a felony or the perpetration by the
Executive of a dishonest act against or breach of fiduciary duty
toward the Company; or (iii)&nbsp;any willful act or omission by the
Executive which is injurious in any material respect to the
financial condition or business reputation of the Company. For
purposes of this Section&nbsp;1.3, no act, or failure to act, on the
Executive&#146;s part shall be considered &#147;willful&#148; unless done, or
omitted to be done, by him not in good faith and without reasonable
belief that his act or omission was in the best interests of the
Company.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.4</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Code. &#147;Code&#148; shall mean the Internal Revenue Code of 1986,
as amended.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.5</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Company. &#147;Company&#148; shall mean Meridian Medical Technologies,
Inc., a Delaware corporation, its subsidiaries and affiliates, and
any successor to its business, whether direct or indirect, by
purchase or securities, merger, consolidation, purchase of all or
substantially all of the Company&#146;s assets or otherwise.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.6</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Date of Termination. &#147;Date of Termination&#148; shall mean (i)&nbsp;in
the case of the Executive&#146;s termination of employment by the Company
for Disability, thirty days after Notice of Termination is given,
provided that the Executive shall not have returned to the
performance of the Executive&#146;s assigned duties on a full-time basis
during such thirty day period; (ii)&nbsp;in the case of termination of
the Executive&#146;s employment by the Company for Cause, the date of
actual termination; or (iii)&nbsp;in the case of termination of the
Executive&#146;s employment by the Executive for Good Reason or
termination for any other reason, the date specified in the Notice
of Termination, which date shall not be less than thirty days after
the date such Notice of Termination is given.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.7</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Disability. &#147;Disability&#148; shall mean a disability that
results in the Executive&#146;s entitlement, for the duration of his
disability, to payments under the Company&#146;s long-term disability
plan or policy in effect immediately before the Executive&#146;s
termination of employment hereunder.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.8</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Executive. &#147;Executive&#148; shall have the meaning provided in
the first paragraph of this Agreement.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.9</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Good Reason. &#147;Good Reason&#148; shall mean the occurrence of any
of the following events without the Executive&#146;s express written
consent:<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P align="center"><FONT size="2">-2-</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">the assignment to the Executive of duties
inconsistent with the position and status of the Chairman of
the Board, President and Chief Executive Officer of the
Company, or a substantial alteration in the nature, status or
prestige of the Executive&#146;s responsibilities as Chairman of
the Board, President and Chief Executive Officer of the
Company from those in effect at the date hereof, excluding
for these purposes an isolated, insubstantial and inadvertent
action not taken in bad faith that is remedied by the Company
promptly after receipt of notice thereof given by the
Executive;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">a reduction by the Company in the Executive&#146;s
pay grade or base salary as in effect at the date hereof or
as the same may be increased from time to time during the
term of this Agreement or the Company&#146;s failure to increase
(within 12&nbsp;months of the Executive&#146;s last increase in base
salary) the Executive&#146;s base salary in an amount which at
least equals, on a percentage basis, the average percentage
increase in base salary for the Company&#146;s executive officers
(within the meaning of Rule&nbsp;3b-7, promulgated under the
Securities Exchange Act of 1934, as amended) in the preceding
12&nbsp;months;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">an involuntary relocation of the Executive from
the location contemplated in Article&nbsp;3 hereof or the breach
by the Company of any other provision of this Agreement
(other than an immaterial breach that is promptly corrected
after notice by the Executive to the Company); or</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(d)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">any purported termination of the employment of
the Executive by the Company which is not effected according
to the requirements of a Notice of Termination as defined in
Section&nbsp;1.10 hereof.</FONT></TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.10</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Notice of Termination. &#147;Notice of Termination&#148; shall mean a
notice, in writing, to the Executive from the Company or to the
Company from the Executive, which indicates the specific termination
provision enumerated in this Agreement relied upon, and which sets
forth in reasonable detail the facts and circumstances alleged to
provide a basis for termination of the Executive&#146;s employment by the
Company or by the Executive. Such notice must be communicated to
the Executive in accordance with Section&nbsp;7.3 hereof.</FONT></TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">1.11</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Tax Counsel. &#147;Tax Counsel&#148; shall mean legal counsel,
selected by Ernst &#038; Young LLP (or an independent certified public
accounting firm that is duly selected by the Board of Directors),
and acceptable to the Executive and the Company, for the purpose of
rendering legal advice and services on tax issues arising under this
Agreement.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">-3-</FONT>
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<P align="center"><FONT size="2">ARTICLE 2.<BR>
TERM
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be effective commencing on the date hereof and shall
continue in effect through the third anniversary of the date hereof; provided,
however, that commencing on the first anniversary of the date hereof and on
each annual anniversary of the date hereof thereafter, the term of this
Agreement shall automatically be extended for one additional year unless no
later than 90&nbsp;days before such anniversary, the Company shall have given the
Executive notice that it does not desire to extend the term of this Agreement.
Notice by the Company pursuant to this Article&nbsp;2 that it does not wish to
extend the term of this Agreement shall not constitute a Notice of Termination
and shall not constitute Good Reason for the Executive to terminate his
employment with the Company.
</FONT>
<P align="center"><FONT size="2">ARTICLE 3.<BR>
EMPLOYMENT
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees to employ the Executive and the Executive agrees to
continue to serve the Company on the terms and conditions set forth herein.
Except as may otherwise be agreed upon between the Company and the Executive,
the Executive shall serve the Company as President and Chief Executive Officer
of the Company. At all times, the Executive shall report directly to the Board
of Directors of the Company. The Executive shall devote substantially all of
his working time and efforts to the business and affairs of the Company, except
for reasonable time spent for service on the boards of directors of other
corporations, vacations and civic and charitable activities, and shall continue
to represent the Company within its industry. The Executive shall, except as
the Executive may otherwise agree, perform his principal activities at the
executive offices of the Company located in the Baltimore-Washington corridor
subject to required travel on the Company&#146;s business.
</FONT>
<P align="center"><FONT size="2">ARTICLE 4.<BR>
BENEFITS AND COMPENSATION
</FONT>
<CENTER>
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<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">4.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Base Salary. During the term of his employment hereunder,
the Company shall pay to the Executive, in approximately equal
installments not less often than twice per month, a base salary of
not less than $420,000 per year, as the same may from time to time
be increased.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">4.2</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Eligibility for Bonuses. Each year during the term of the
Executive&#146;s employment hereunder, the Executive shall be eligible to
receive an annual bonus, the amount and payment of which shall be
determined by the Board of Directors in its reasonable discretion.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">4.3</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Benefit Plans and Arrangements. The Executive shall be
entitled to participate in the Company&#146;s employee benefit plans and
arrangements in effect during the term of his employment hereunder: provided that the benefits and rights provided to the Executive
under such plans and</FONT></TD>
</TR>

</TABLE>
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<P align="center"><FONT size="2">-4-</FONT>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
arrangements shall be not less favorable than the benefits and
rights provided to the Executive under the Company&#146;s plans and
arrangements applicable to the Executive as of the date hereof.<BR>&nbsp;</FONT></TD>
</TR>
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">4.4</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Perquisites. During the term of his employment hereunder,
the Executive shall be entitled to receive fringe benefits
ordinarily and customarily provided by the Company. The fringe
benefits to which the Executive is entitled under this Section&nbsp;4.4
shall not be less favorable than those to which the Executive is
entitled as of the date hereof.<BR>&nbsp;</FONT></TD>
</TR>
<tr><td>&nbsp;</td></tr>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">4.5</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Expenses. The Company shall promptly reimburse the Executive
for all reasonable travel and other business-related expenses
related to the Company&#146;s business actually paid or incurred by him
in the performance of his services under this Agreement.<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">ARTICLE 5.<BR>
TERMINATION
</FONT>
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<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">5.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Death. The Executive&#146;s employment hereunder shall terminate
upon his death.<BR>&nbsp;</FONT></TD>
</TR>
<tr><td>&nbsp;</td></tr>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">5.2</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Disability. During any period within the term of this
Agreement that the Executive is or becomes incapacitated due to
physical or mental illness, the Executive shall continue to receive
the Executive&#146;s full base compensation and other benefits at the
rate then in effect until the Executive&#146;s employment is terminated.
After termination for Disability, benefits accruing to the Executive
shall be determined in accordance with the Company&#146;s disability
policy as then in effect.<BR>&nbsp;</FONT></TD>
</TR>
<tr><td>&nbsp;</td></tr>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">5.3</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Cause. The Company may terminate the Executive&#146;s employment
hereunder for Cause. In the event that the Executive&#146;s employment
with the Company is terminated for Cause, the Executive shall
receive the Executive&#146;s full base compensation as earned through the
Date of Termination at the rate in effect at the time Notice of
Termination is given. Following payment of said amount and without
impairing the Executive&#146;s rights under benefit plans and
arrangements and the Company&#146;s policies and procedures, the Company
shall have no further obligations to the Executive under this
Agreement.<BR>&nbsp;</FONT></TD>
</TR>
<tr><td>&nbsp;</td></tr>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">5.4</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Termination for Reason other than Death, Disability or Cause.
In the event that the employment of the Executive shall be
terminated during the term of this Agreement (i)&nbsp;by the Company for
any reason other than for Cause or Disability or (ii)&nbsp;by the
Executive for Good Reason, then:<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P align="center"><FONT size="2">-5-</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">unless the Executive shall elect instead to
receive the benefits available under the Company&#146;s severance
policy, the Executive shall be entitled to receive from the
Company:</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(i)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="87%"><FONT size="2">the Executive&#146;s full base
compensation as earned through the Date of Termination
at the rate in effect at the time Notice of
Termination is given;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(ii)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">any bonus to which the Executive
has become entitled but which has not yet been paid to
the Executive;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(iii)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">for a 36-month period after such
termination, life, disability, accident and health
insurance coverage (under the Company&#146;s plans and
policies) that are substantially the same as that
which the Executive received immediately prior to the
Notice of Termination, provided that if any such
benefits enumerated above cannot be provided to the
Executive or his dependents, beneficiaries or estate
under any of the Company&#146;s plans, the Company shall
cause the Executive to receive such benefits under
alternative plans or arrangements that provide such
coverage on substantially the same terms and at a cost
to the Executive that is not greater than that
incurred by the Executive (determined on an after-tax
basis) immediately prior to the Notice of Termination;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(iv)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">a lump sum cash payment equal to
the product of (A)&nbsp;three (3), and (B)&nbsp;the Executive&#146;s
combined base compensation for the twelve-month period
immediately preceding the Notice of Termination;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(v)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">a lump sum cash payment equal to
the Executive&#146;s Annual Bonus; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(vi)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">a lump sum cash payment equal to
the product of (A)&nbsp;the Executive&#146;s Annual Bonus and
(B)&nbsp;a fraction, the numerator of which is the number
of days in the then-current fiscal year through the
Date of Termination and the denominator of which is
365;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">all options to purchase securities of the
Company then held by the Executive shall be immediately
exercisable, without regard to whether such options are
exercisable at such time pursuant to the terms of the
documents under which such options were granted; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">any securities of the Company then held by the
Executive that are subject to any restriction on transfer,
other than restrictions</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">-6-</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">imposed only by federal or state securities laws, shall
lapse and be of no further force and effect with the result
that the Executive shall be permitted to sell, transfer or
otherwise dispose of such securities without regard to any
such restrictions.</FONT></TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">5.5</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Tax Gross-Up of Benefit Payments.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">In the event that (i)&nbsp;the Executive becomes
entitled to any benefits or payments in connection with a
change in the ownership or effective control of the Company
or a change in the ownership of a substantial portion of the
assets of the Company (within the meaning of Section&nbsp;280G of
the Code and the regulations promulgated thereunder) or the
termination of the Executive&#146;s employment, whether pursuant
to the terms of this Agreement or otherwise (collectively,
the &#147;Total Benefits&#148;), and (ii)&nbsp;any of the Total Benefits
will be subject to the excise tax imposed under Section&nbsp;4999
of the Code (the &#147;Excise Tax&#148;), the Company shall pay to the
Executive an additional amount (the &#147;Gross-Up Payment&#148;) such
that the net amount retained by the Executive from the
Gross-Up Payment, after deduction of any federal, state and
local income taxes, Excise Tax, and FICA and Medicare
withholding taxes upon the Gross-Up Payment, shall be equal
to the Excise Tax on the Total Benefits. For purposes of
determining the amount of such Excise Tax, the amount of the
Total Benefits that shall be treated as subject to the Excise
Tax shall be equal to (i)&nbsp;the Total Benefits, minus (ii)&nbsp;the
amount of such Total Benefits that, in the opinion of Tax
Counsel, are not excess parachute payments (within the
meaning of Section&nbsp;280G(b)(1) of the Code).</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">For purposes of this Section&nbsp;5.5, the Executive
shall be deemed to pay federal income taxes at the highest
marginal rate of federal income taxation in the calendar year
in which the Excise Tax is (or would be) payable and state
and local income taxes at the highest marginal rate of
taxation in the state and locality of the Executive&#146;s
residence on the Date of Termination, net of the reduction in
federal income taxes which could be obtained from deduction
of such state and local taxes (calculated by assuming that
any reduction under Section&nbsp;68 of the Code in the amount of
itemized deductions allowable to the Executive applies first
to reduce the amount of such state and local income taxes
that would otherwise be deductible by the Executive). Except
as otherwise provided herein, all determinations required to
be made under this Section&nbsp;5.5 shall be made by Tax Counsel,
which determinations shall be conclusive and binding on the
Executive and the Company absent manifest error.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">-7-</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2">In the event that the Excise Tax on the Total
Benefits is subsequently determined to be less than the
amount taken into account hereunder at the time of
termination of the Executive&#146;s employment, the Executive
shall repay to the Company, at the time that the amount of
such reduction in Excise Tax is finally determined, the
portion of the Gross-Up Payment attributable to such
reduction (plus that portion of the Gross-Up Payment
attributable to the Excise Tax, federal, state and local
income taxes and FICA and Medicare withholding taxes imposed
on the Gross-Up Payment being repaid by the Executive to the
extent that such repayment results in a reduction in any such
taxes and/or a federal, state or local income tax deduction)
plus interest (at the rate applicable under Section&nbsp;1274 of
the Code) on the amount of such repayment for the period that
the portion of the Gross-Up Payment being repaid was held by
the Executive. In the event that the Excise Tax on the Total
Benefits is determined to exceed the amount taken into
account hereunder at the time of the termination of the
Executive&#146;s employment (including by reason of any payment
the existence or amount of which cannot be determined at the
time of the Gross-Up Payment), the Company shall make an
additional Gross-Up Payment (which shall be calculated by Tax
Counsel in the same manner and using the same assumptions as
set forth in Sections&nbsp;5.5(a) and 5.5(b) hereof) to the
Executive in respect of such excess (plus any interest,
penalties or additions payable by the Executive with respect
to such excess to the Internal Revenue Service or any other
federal, state, local or foreign taxing authority) at the
time that the amount of such excess is finally determined.</FONT></TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">5.6</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Legal Fees and Expenses. Provided that the Executive is the
prevailing party, the Company shall pay to the Executive all
reasonable legal fees and expenses incurred by the Executive as a
result of a dispute regarding the application of any provision of
this Agreement, including all such fees and expenses, if any,
incurred (a)&nbsp;in seeking to obtain or enforce any right or benefit
provided by the Agreement or (b)&nbsp;in connection with any tax audit or
proceeding to the extent attributable to the application of Section
4999 of the Code to any of the Total Benefits. Such payments shall
be made within five (5)&nbsp;business days after delivery of the
Executive&#146;s respective written requests for payment accompanied with
such evidence of fees and expenses incurred as the Company
reasonably may require.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">5.7</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
No Mitigation. The Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise, nor shall the amount of any
payment provided for in this Agreement be reduced or offset by any
compensation earned by the Executive as a result of employment by
another employer or by<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">-8-</FONT>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="87%">&nbsp;</TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
retirement benefits after the Date of Termination or otherwise.
Benefits payable pursuant to Section&nbsp;5.4(a)(iii) of this Agreement
shall cease to the extent that the Executive is entitled to
receive such benefits pursuant to the benefit plans of another
employer of the Executive.<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">ARTICLE 6.<BR>
NON-COMPETITION; NON-DISCLOSURE
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">6.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
The Executive agrees that, while he is employed by the
Company and for the one (1)&nbsp;year period thereafter, he will not
directly or indirectly engage or participate in, as an owner,
partner, shareholder, officer, employee, director, agent or
consultant, any business that directly or indirectly competes with
the Company or any of its subsidiaries or affiliates, and, further,
that he will not make any investments in any business that competes
with the Company. The Executive further agrees that he will not at
any time, except in the performance of his duties for the Company,
directly or indirectly disclose any trade secret or confidential
information that he learns by reason of his association with the
Company. The Executive acknowledges that all business records,
papers, documents and other matters created, collected or made by
him in the performance of his service for the Company shall remain
the exclusive property of the Company. The agreements and
acknowledgements in this paragraph are in addition to those
contained in the Employment Agreement incorporated by reference in
Section&nbsp;6.2.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">6.2</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
The Executive ratifies and confirms the terms and obligations
of the Employment Agreement executed between the Company and the
Executive on July&nbsp;13, 1989, containing a covenant not to compete and
provisions on nondisclosure of information, new inventions, delivery
of documents, and remedies. That Employment Agreement, and any
successor agreement to that Agreement, is hereby incorporated by
reference into this Agreement.<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">ARTICLE 7.<BR>
MISCELLANEOUS
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.1</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Successors; Binding Agreement. The Company will require any
successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume and agree
to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such
succession had taken place. The failure of the Company to obtain
such assumption agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle the
Executive to compensation from the Company in the same amount and on
the same terms as the Executive would be entitled to hereunder if
the Executive had terminated the Executive&#146;s employment for<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">-9-</FONT>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Good Reason, except that for purposes of implementing the
foregoing, the date on which any such succession becomes effective
shall be deemed the Date of Termination.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.2</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Successors and Assigns. This Agreement shall inure to the
benefit of, and be enforceable by, the personal heirs, distributed,
devisees and legatees of the Executive.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.3</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Notice. Any notice and all communications by either party to
the other provided for in this Agreement shall be in writing and
shall be deemed to have been received when delivered or mailed by
United States registered mail, return receipt requested, postage
prepaid, or deposited with a recognized national overnight delivery
service. If addressed to the Executive, the notice shall be
delivered or mailed to the Executive at the address reflected in the
personnel records of the Company, or if addressed to the Company,
the notice shall be delivered or mailed to the attention of the
Board of Directors with a copy to the Secretary of the Company, to
the Company&#146;s principal executive offices, or to such other address
as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall
be effective only upon receipt.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.4</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
No Waiver. No provision of this Agreement may be modified,
waived or discharged unless in writing and signed by the Executive
and such officer of the Company as may be specifically designated or
authorized by the Board of Directors or by a Committee of the Board
of Directors. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent
time.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.5</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Entire Agreement. No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter
hereof have been made by either party which are not expressly set
forth in this Agreement. This Agreement constitutes the entire
agreement of the parties, recites the sole considerations for the
promises exchanged and supersedes any prior agreements between the
Executive and the Company with respect to the subject matter hereof,
including without limitation the Former Agreement but excluding the
Employment Agreement incorporated by reference in Section&nbsp;6.2
hereof.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.6</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Controlling Law. The validity, interpretation, construction
and performance of this Agreement shall be governed by the laws of
the State of Delaware relating to contracts to be performed entirely
therein. All amounts payable to the Executive pursuant to this
Agreement shall be paid<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">-10-</FONT>
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<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
subject to such reporting and withholding requirements, if any, as
may be imposed by applicable law and applicable Company policy.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.7</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Invalid Provision. The invalidity or unenforceability of any
provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall
remain in full force and effect.<BR>&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">7.8</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original, and
all such counterparts together shall constitute but one and the same
instrument.<BR>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first set forth above.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="35%">
<TR valign="bottom">
        <TD width="100%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">MERIDIAN MEDICAL TECHNOLOGIES, INC.,<BR>
a Delaware corporation</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">By:  /s/ David L. Lougee<BR>
</FONT><HR size="1" noshade><FONT size="2">
Chairman, Compensation and<BR>
Stock Option Plan Committee</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">JAMES H. MILLER</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">/s/ James H. Miller<BR>
</FONT><HR size="1" noshade><FONT size="2"></FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="center"><FONT size="2">-11-</FONT>




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