MINNTECH CORP
EXHIBIT 10(U)
<DOCUMENT>
<TYPE>EX-10.(U)
<SEQUENCE>4
<FILENAME>a2027493zex-10_u.htm
<DESCRIPTION>EXHIBIT 10(U)
<TEXT>

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<H2><FONT SIZE=2> </FONT></H2>
<P ALIGN="RIGHT"><FONT SIZE=2><B>EXHIBIT 10(u)  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki2894_management_agreement"> </A></FONT> <FONT SIZE=2><B>MANAGEMENT AGREEMENT         </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT made as of the 26<SUP>th</SUP> day of May&nbsp;2000, by and between Minntech Corporation, a Minnesota corporation, with its principal executive
office at Plymouth, Minnesota ("Company") and Michael P. Petersen residing at 7843 Dover Cove, Eden Prairie, Minnesota 55347 (the "Executive"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Company considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of Company and its
shareholders; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Executive is expected to make a significant contribution to the profitability, growth and financial strength of Company; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Company, as a publicly held corporation, recognizes that the possibility of a Change in Control may exist and that such possibility, and the uncertainty and questions which
it may raise among management, may result in the departure or distraction of the Executive in the performance of the Executive's duties to the detriment of Company and its shareholders; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Executive is willing to be an employee of Company upon the understanding that Company will provide income security if the Executive's employment is terminated under
certain terms and conditions; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
it is in the best interests of Company and its shareholders to reinforce and encourage the continued attention and dedication of management personnel, including the
Executive, to their assigned duties without distraction and to increase the likelihood of the continued availability to Company of the Executive in the event of a Change in Control. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;THEREFORE,
in consideration of the foregoing and other respective covenants and agreements of the parties herein contained, the parties hereto agree as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Term of Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement shall commence on the date hereof and shall continue in effect
until such time as Company notifies the Executive or the Executive notifies Company of termination of this Agreement; provided, however, that in no event may this Agreement be terminated prior to two
years from the date hereof, and notice of termination on the second or any subsequent anniversary date hereof must be given by Company in writing mailed to the Executive at his or her last known
address within 60&nbsp;days prior to such anniversary date or by the Executive by notice in writing mailed to Company at the principal executive office of Company within 60&nbsp;days prior to such
anniversary date. If no such notice is given, then the term of this Agreement shall be extended for additional periods of one year. Notwithstanding the preceding sentence, if a Change in Control
occurs during the term of this Agreement (including any extension hereof), this Agreement shall continue in effect for a period of 36&nbsp;months from the date of the occurrence of a Change in
Control. Except as provided in Section&nbsp;2(b) or Section&nbsp;3(e) of this Agreement, nothing stated herein shall limit the right of the Executive or Company to terminate the employment of the
Executive with Company at any time prior to the expiration of the term of this Agreement, with or without Cause (as defined in Section&nbsp;3(b) of this Agreement) and for any reason whatsoever,
subject to the right of the Executive to receive any payment and other benefits that may be due pursuant to the terms and conditions of Section&nbsp;4 of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Change in Control.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;No amounts shall be payable hereunder unless a Change in Control, as set forth
below, shall occur during the term of this Agreement. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For
purposes of this Agreement, a "Change in Control" of Company shall be deemed to occur if any of the following occur: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;Any
"person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, or any successor statute thereto (the "Exchange
Act")) acquires or becomes a "beneficial owner" (as defined in Rule&nbsp;13d-3 or any successor rule under the Exchange Act), directly or indirectly, of securities of Company
representing 30% or </FONT></P>

</UL>
</UL>
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<P><FONT SIZE=2>
more of the combined voting power of Company's then outstanding securities entitled to vote generally in the election of directors ("Voting Securities"), provided, however, that the following shall
not constitute a Change in Control pursuant to this Section&nbsp;2(a)(i): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;any
acquisition or beneficial ownership by Company or a subsidiary of Company; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;any
acquisition or beneficial ownership by any employee benefit plan (or related trust) sponsored or maintained by Company or one or more of its subsidiaries; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;any
acquisition or beneficial ownership by any corporation with respect to which, immediately following such acquisition, more than 70% of both the combined voting
power of Company's then outstanding Voting Securities and the common stock of Company is then beneficially owned, directly or indirectly, by all or substantially all of the persons who beneficially
owned Voting Securities and common stock of Company immediately prior to such acquisition in substantially the same proportions as their ownership of such Voting Securities and common stock, as the
case may be, immediately prior to such acquisition; </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;A
majority of the members of the Board of Directors of Company shall not be Continuing Directors. For purposes of this subsection 2(a)(ii), "Continuing Directors"
shall mean: (A)&nbsp;individuals who, on the date hereof, are directors of Company, (B)&nbsp;individuals elected as directors of Company subsequent to the date hereof for whose election proxies
shall have been solicited by the Board of Directors of Company or (C)&nbsp;any individual elected or appointed by the Board of Directors of Company to fill vacancies on the Board of Directors of
Company caused by death or resignation (but not by removal) or to fill newly-created directorships; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Approval
by the shareholders of Company of a reorganization, merger or consolidation of Company (other than a merger or consolidation with a subsidiary of
Company) or a statutory exchange of outstanding Voting Securities of Company, unless immediately following such reorganization, merger, consolidation or exchange, all or substantially all of the
persons who were the beneficial owners, respectively, of Voting Securities and common stock of Company immediately prior to such reorganization, merger, consolidation or exchange beneficially own,
directly or indirectly, more than 70% of, respectively, the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors and the then
outstanding shares of common stock, as the case may be, of the corporation resulting from such reorganization, merger, consolidation or exchange in substantially the same proportions as their
ownership, immediately prior to such reorganization, merger, consolidation or exchange, of the Voting Securities and common stock of Company, as the case may be; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Approval
by the shareholders of Company of (x)&nbsp;a complete liquidation or dissolution of Company or (y)&nbsp;the sale or other disposition of all or
substantially all of the assets of Company (in one or a series of transactions), other than to a corporation with respect to which, immediately following such sale or other disposition, more than 70%
of, respectively, the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and the then outstanding shares of
common stock of such corporation is then beneficially owned, directly or
indirectly, by all or substantially all of the persons who were the beneficial owners, respectively, of the Voting Securities and common stock of Company immediately prior to such sale or other
disposition in substantially the same proportions as their ownership, immediately prior to such sale or other disposition, of the Voting Securities and common stock of Company, as the case may be; or </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Company enters into a letter of intent, an agreement in principle or a definitive agreement relating to a Change in Control described in Section&nbsp;2(a)(i),
2(a)(ii), 2(a)(iii)&nbsp;or 2(a)(iv)&nbsp;above that ultimately results in such a Change in Control or a tender or exchange offer or proxy contest is commenced which ultimately results in a Change
in Control described in Section&nbsp;2(a)(i)&nbsp;or 2(a)(ii)&nbsp;hereof. </FONT></P>

<P><FONT SIZE=2>Notwithstanding
the above, a Change in Control shall not be deemed to occur with respect to the Executive if (x)&nbsp;the acquisition or beneficial ownership of the 30% or greater interest referred
to in Section&nbsp;2(a)(i)&nbsp;is by the Executive or by a group, acting in concert, that includes the Executive or (y)&nbsp;if a majority of the then combined voting power of the then
outstanding voting securities (or voting equity interests) of the surviving corporation or of any corporation (or other entity) acquiring all or substantially all of the assets of Company shall,
immediately after a reorganization, merger, consolidation, statutory share exchange or disposition of assets referred to in Section&nbsp;2(a)(iii)&nbsp;or 2(a)(iv), be beneficially owned, directly
or indirectly, by the Executive or by a group, acting in concert, that includes the Executive. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The
Executive agrees that, subject to the terms and conditions of this Agreement, in the event of a Change in Control of Company described in
Section&nbsp;2(a)(i), 2(a)(ii), 2(a)(iii)&nbsp;or 2(a)(iv), occurring after the date hereof, the Executive, if employed by Company immediately prior to such a Change in Control, will not
voluntarily terminate employment with Company except for Good Reason for a period of 90&nbsp;days after the occurrence of such a Change in Control of Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For
purposes of this Agreement, a "subsidiary" of Company shall mean any entity of which securities or other ownership interests having general voting power to
elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by Company. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Termination Following Change in Control.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;If a Change in Control shall occur during the term of this
Agreement, the Executive shall be entitled to the payments and other benefits provided in subsection 4(d) in the event of the termination of the Executive's employment with Company unless the
Executive's termination is (A)&nbsp;because of the Executive's death, (B)&nbsp;by Company for Cause or Disability, or (C)&nbsp;by the Executive other than for Good Reason. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;</FONT><FONT
SIZE=2><I>Disability</I></FONT><FONT SIZE=2>. If, as a result of incapacity due to physical or mental illness, the Executive shall have been absent
from the full-time performance of the Executive's duties with Company for six consecutive months, and within 30&nbsp;days after written Notice of Termination is given, the Executive
shall not have returned to the full-time performance of the Executive's duties, Company may terminate the Executive's employment for "Disability". Any question as to the existence of the
Executive's Disability upon which the Executive and Company cannot agree shall be determined by a qualified independent physician selected by the Executive (or, if the Executive is unable to make such
selection, it shall be made by any adult member of the Executive's immediate family), and approved by Company. The determination of such physician made in writing to Company and to the Executive shall
be final and conclusive for all purposes of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;</FONT><FONT
SIZE=2><I>Cause</I></FONT><FONT SIZE=2>. Termination of the Executive's employment for "Cause" shall mean termination upon the conviction of the
Executive by a court of competent jurisdiction for felony criminal conduct. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;</FONT><FONT
SIZE=2><I>Good Reason</I></FONT><FONT SIZE=2>. Termination by the Executive for "Good Reason" shall mean termination by the Executive if, without the
Executive's express written consent, any of the following shall occur: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;the
assignment to the Executive of any duties inconsistent with the Executive's status or position with Company, or a substantial alteration in the nature or
status of the Executive's responsibilities from those in effect immediately prior to the Change in Control; </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;a reduction by Company in the Executive's annual base salary in effect immediately prior to a Change in Control; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the
relocation of Company's principal executive offices to a location more than fifty miles from Plymouth, Minnesota or Company requiring the Executive to be
based anywhere other than Company's principal executive office (or if the Executive is based at a location other than Company's principal executive office immediately prior to the first Change in
Control, anywhere other than such location)
except for required travel on Company's business to an extent substantially consistent with the Executive's prior business travel obligations; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the
failure by Company to continue to provide the Executive with benefits at least as favorable to those enjoyed by the Executive under any of Company's pension,
life insurance, medical, health and accident, disability, deferred compensation, incentive awards, employee stock options, or savings plans in which the Executive was participating at the time of the
Change in Control, the taking of any action by Company which would directly or indirectly materially reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed at the
time of the Change in Control, or the failure by Company to provide the Executive with the number of paid vacation days to which the Executive is entitled at the time of the Change in Control,
provided, however, that Company may amend any such plan or programs as long as such amendments do not reduce any benefits to which the Executive would be entitled upon termination; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;a
termination pursuant to Section&nbsp;3(d) of this Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;the
failure of Company to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section&nbsp;6; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;any
purported termination of the Executive's employment which is not made pursuant to a Notice of Termination satisfying the requirements of subsection
(e)&nbsp;below; for purposes of this Agreement, no such purported termination shall be effective. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;</FONT><FONT
SIZE=2><I>Voluntary Termination Deemed Good Reason</I></FONT><FONT SIZE=2>. Notwithstanding anything herein to the contrary, during the period
commencing on the 91st day following a Change in Control under Section&nbsp;2(a)(i), 2(a)(ii), 2(a)(iii)&nbsp;or 2(a)(iv)&nbsp;of this Agreement and ending on the 180th day following such a
Change in Control, the Executive may voluntarily terminate his or her employment for any reason, and such termination shall be deemed "Good Reason" for all purposes of this Agreement. In the event of
such voluntary termination pursuant to this subsection 3(d)), the multiple applied to the Severance Payment (as defined in Section&nbsp;4(d)), if any, payable to the Executive pursuant to subsection
4(d)(ii)&nbsp;below shall be reduced by 50%. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;</FONT><FONT
SIZE=2><I>Notice of Termination</I></FONT><FONT SIZE=2>. Any purported termination of the Executive's employment by Company or by the Executive shall
be communicated by written Notice of Termination to the other party hereto in accordance with Section&nbsp;7. For purposes of this Agreement, a "Notice of Termination" shall mean a
notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth the facts and circumstances claimed to provide a basis for termination of the
Executive's employment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Date of Termination</I></FONT><FONT SIZE=2>. For purposes of this Agreement, "Date of Termination" shall mean: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;if
the Executive's employment is terminated for Disability, 30&nbsp;days after Notice of Termination is given (provided that the Executive shall not have
returned to the full-time performance of the Executive's duties during such 30&nbsp;day period); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;if
the Executive's employment is terminated pursuant to subsections (b), (c)&nbsp;or (d)&nbsp;above or for any other reason (other than Disability), the date
specified in the Notice of Termination (which, in the case of a termination pursuant to subsection&nbsp;(b) above, shall not be </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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less than 10&nbsp;days, and, in the case of a termination pursuant to subsection&nbsp;(c) or (d) above, shall not be less than 10 nor more than 30&nbsp;days, respectively, from the date such
Notice of Termination is given). </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;</FONT><FONT
SIZE=2><I>Dispute of Termination</I></FONT><FONT SIZE=2>. If, within 10&nbsp;days after any Notice of Termination is given, the party receiving such
Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be the date on which the dispute is finally determined, either by mutual
written agreement of the parties, or by a final judgment, order or decree of a court of competent jurisdiction (which is not appealable or the time for appeal therefrom having expired and no appeal
having been perfected); provided, that the Date of Termination shall be extended by a notice of dispute only if such notice is given in good faith and the party giving such notice pursues the
resolution of such dispute with reasonable diligence. Notwithstanding the pendency of any such dispute, Company shall continue to pay the Executive full compensation in effect when the notice giving
rise to the dispute was given (including, but not limited to, base salary) and continue the Executive as a participant in all compensation, benefit and insurance plans in which the Executive was
participating when the notice giving rise to the dispute was given, until the dispute is finally resolved in accordance with this subsection. Amounts paid under this subsection are in addition to all
other amounts due under this Agreement and, except as provided in Section&nbsp;4(d)(v), shall not be offset against or reduce any other amounts under this Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Compensation Upon Termination or During Disability.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;Upon termination of the Executive's employment
(or, with respect to Section&nbsp;4(a), during a period of Disability) following a Change in Control, as defined in Section&nbsp;2(a), of Company or if there shall be a termination by Company of
the Executive's employment prior to a Change in Control, or the Executive shall terminate employment with Company for Good Reason prior to a Change in Control (for which purpose the references in
Section&nbsp;3(c) to changes from circumstances existing immediately prior to or at the time of a Change in Control that constitute Good Reason for termination shall instead be deemed to be
references to circumstances existing immediately prior to or at the time that the Change in Control is first anticipated), and the Executive reasonably demonstrates that such termination by Company or
event constituting Good Reason for termination by the Executive (x)&nbsp;was requested by a third party that had previously taken other steps reasonably calculated to result in a Change in Control
described in Section&nbsp;2(a)(i), 2(a)(ii), 2(a)(iii)&nbsp;or 2(a)(iv)&nbsp;and ultimately resulting in such a Change in Control following termination of the Executive's employment or
(y)&nbsp;otherwise arose in connection with or in anticipation of a Change in Control described in Section&nbsp;2(a)(i), 2(a)(ii), 2(a)(iii)&nbsp;or 2(a)(iv)&nbsp;that ultimately occurs
following termination of the Executive's employment, the Executive shall be entitled to the following benefits: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except
as provided in Section&nbsp;4(b), during any period that the Executive fails to perform full-time duties with Company as a result of
Disability, Company shall pay the Executive the base salary of the Executive at the rate in effect at the commencement of any such period, until such time as the Executive is determined to be eligible
for long term disability benefits in accordance with Company's insurance programs then in effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If
the Executive's employment shall be terminated by Company for Cause or Disability or by the Executive, following a Change in Control, other than for Good Reason,
Company shall pay to the Executive his or her full base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given and Company shall have no further
obligation to the Executive under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If
the Executive's employment shall be terminated by Company for Cause or Disability, or is terminated by reason of death, Company shall immediately cause to be
commenced payment to the Executive (or the Executive's designated beneficiaries or estate, if no beneficiary is designated) </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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of any and all benefits to which the Executive is entitled, if any, under Company's insurance programs then in effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except
for termination of the Executive's employment with Company by reason of death, if the Executive's employment with Company shall be terminated (A)&nbsp;by
Company other than for Cause or Disability or (B)&nbsp;by the Executive for Good Reason, then the Executive shall be entitled to the benefits provided below: </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;Company
shall pay the Executive the Executive's full base salary through the Date of Termination at the rate in effect at the time the Notice of Termination is
given. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;In
lieu of any further salary payments for periods subsequent to the Date of Termination, Company shall pay as a severance payment (the "Severance Payment") an
amount equal to (A)&nbsp;one and one-half (1.5) times (subject to reduction pursuant to Section&nbsp;3(d) in the event of a termination of employment by the Executive pursuant to
Section&nbsp;3(d)) the average of the annual compensation which was paid to the Executive by Company (or any corporation affiliated with Company within the meaning of Section&nbsp;1504 of the
Internal Revenue Code of 1986, as amended (the "Code")) and includible in the Executive's gross income for federal income tax purposes for the shorter of the period consisting of (1)&nbsp;the five
most recently completed taxable years of the Executive ending before the earlier of the first Change in Control (for which purpose the first Change in Control shall not be deemed to be a Change in
Control pursuant to Section&nbsp;2(a)(v)&nbsp;unless the Executive's termination of employment with Company occurs prior to the first Change in Control pursuant to Section&nbsp;2(a)(i),
2(a)(ii), 2(a)(iii)&nbsp;or 2(a)(iv)) or (2)&nbsp;that portion of such five-year period during which the Executive was employed by Company (for which purpose compensation for a partial
year shall be annualized before determining average annual compensation for the period in accordance with temporary or final regulations promulgated under Section&nbsp;280G(d) of the Code or any
successor provision thereto), less (B)&nbsp;$1.00. Such average shall be determined in accordance with temporary or final regulations promulgated under Section&nbsp;280G(d) of the Code or any
successor provision thereto. The Severance Payment shall be made in full within 60&nbsp;days after termination of employment. Such Severance Payment shall be reduced by any severance pay that the
Executive receives from Company, any subsidiary of Company or any successor thereof under any other policy or agreement of Company in the event of involuntary termination of the Executive's
employment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;For
a 36&nbsp;month period after the Date of Termination, Company shall arrange to provide the Executive with life, disability, accident and health insurance
benefits substantially similar to those which the Executive is receiving or entitled to receive immediately prior to the Notice of Termination. Benefits otherwise receivable by the Executive pursuant
to this paragraph&nbsp;(iii) shall be reduced to the extent comparable benefits are actually received by the Executive from another employer or other third party during such 36&nbsp;month period,
and any such benefits actually received by the Executive shall be reported to Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Company
shall also pay to the Executive all legal fees and expenses incurred by the Executive as a result of such termination (including all such fees and
expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Agreement). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Notwithstanding
any provision to the contrary contained herein except the last sentence of this Section&nbsp;4(d)(v), if the lump sum cash payment due and the
other benefits to which the Executive shall become entitled under this Section&nbsp;4 hereof, either alone or together with other payments in the nature of compensation to the Executive which are
contingent on a change in the ownership or effective control of Company or in the ownership of a substantial portion of the assets of Company or otherwise, would constitute a "parachute </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2>
payment" as defined in Section&nbsp;280G of the Code or any successor provision thereto, such lump sum payment and/or such other benefits and payments shall be reduced (but not below zero) to the
largest aggregate amount as will result in no portion thereof being subject to the excise tax imposed under Section&nbsp;4999 of the Code (or any successor provision thereto) or being
non-deductible to Company for federal income tax purposes pursuant to Section&nbsp;280G of the Code (or any successor provision thereto). The Executive in good faith shall determine the
amount of any reduction to be made pursuant to this Section&nbsp;4(d)(v)&nbsp;and shall select from among the foregoing benefits and payments those which shall be reduced. No modification of, or
successor provision to, Section&nbsp;280G or Section&nbsp;4999 subsequent to the date of this Agreement shall, however, reduce the benefits to which the Executive would be entitled under this
Agreement in the absence of this Section&nbsp;4(d)(v)&nbsp;to a greater extent than they would have been reduced if Section&nbsp;280G and Section&nbsp;4999 had not been modified or superseded
subsequent to the date of this Agreement, notwithstanding anything to the contrary provided in the first sentence of this Section&nbsp;4(d)(v). </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The
Executive shall not be required to mitigate the amount of any payment provided for in this Section&nbsp;4 by seeking other employment or otherwise, nor shall
the amount of any payment or benefit provided for in this Section&nbsp;4 be reduced by any compensation earned by the Executive as the result of employment by another employer or by retirement
benefits after the Date of Termination, or otherwise except as specifically provided in this Section&nbsp;4. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;In
addition to all other amounts payable to the Executive under this Section&nbsp;4, the Executive shall be entitled to receive all benefits payable to the
Executive under any other plan or agreement relating to retirement benefits except as specifically provided in this Section&nbsp;4. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;If
Company fails to make any payment at the times and in the amounts specified herein, or with respect to any fringe benefits, fails to provide such benefit as
specified herein, within 10&nbsp;days from the date of written notice from the Executive to Company of such failure, Company shall be deemed to have waived any right to enforce any restriction on
employment or non-competition provision contained in any agreement between Company and the Executive then in existence which limits the ability of the Executive to accept other employment
and, thereafter, the Executive may work or consult for any person or business organization which is engaged in the design, development, assembly, manufacture, marketing or sale of any product which
competes with any product of Company, or for any person or business organization which is in competition with Company, without liability to Company for such acts. A waiver of such restrictive covenant
or non-competition provision shall not in any way restrict or limit the Executive's right to enforce the provisions of this Agreement, including any legal or equitable action to enforce
any and all payments, rights or benefits under this Agreement, it being the intention of this subsection that such waiver shall be in addition to, not in substitution of, any other rights to which the
Executive is entitled hereunder. Once waived, any such restrictive covenant or non-competition provision shall not thereafter be enforceable even though the Executive may later receive the
payment, right or benefit which was the basis of the waiver of such restrictive covenant or non-competition provision. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Funding of Payments.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;In order to assure the performance of Company or its successor of its
obligations under this Agreement, Company may deposit in trust an amount equal to the maximum payment that will be due the Executive under the terms hereof. Under a written trust instrument, the
Trustee shall be instructed to pay to the Executive (or the Executive's legal representative, as the case may be) the amount to which the Executive shall be entitled under the terms hereof, and the
balance, if any, of the trust not so paid or reserved for payment shall be repaid to Company. If Company deposits funds in trust, payment shall be made no later than the occurrence of the first Change
in Control described in Section&nbsp;2(a)(i), 2(a)(ii), 2(a)(iii)&nbsp;or 2(a)(iv). Company shall give notice of such a Change in Control to any such trustee upon any occurrence as defined herein.
If and to the extent that the Executive becomes a beneficiary of any such funds deposited in trust, Company shall give prompt </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2>
notice to the Executive, which shall include a copy of the trust instrument and amendments from time to time. The rights of the Executive under such trust instrument shall be enforceable against
Company and any trustees named therein, as though the provisions of said trust were incorporated into this Agreement. If and to the extent there are not amounts in trust sufficient to pay the
Executive under this Agreement, Company shall remain liable for any and all payments due to the Executive. In accordance with the terms of such trust, at all times during the term of this Agreement,
the Executive shall have no rights, other than as an unsecured general creditor of Company, to any amounts held in trust and all trust assets shall be general assets of Company and subject to the
claims of creditors of Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Successors; Binding Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;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 Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession had taken place.
Failure of Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to compensation from
Company in the same amount and on the same terms as he would be entitled hereunder if he terminated his employment for Good Reason following a Change in Control, except that for purposes of
implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This
Agreement shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, successors, heirs, and designated
beneficiaries. If the Executive should die while any amount would still be payable to the Executive hereunder if the Executive had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to the Executive's designated beneficiaries, or, if there is no such designated beneficiary, to the Executive's estate. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Notice.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;For the purpose of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered or certified mail, return receipt requested, postage
pre-paid, addressed to the last known residence address of the Executive or in the case of Company, to its principal executive office to the attention of each of the then directors of
Company with a copy to its Secretary, 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. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;Miscellaneous.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the parties. No waiver by either party hereto at any time of any breach by the other party to this Agreement 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 to similar
time. No legally binding or enforceable agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof that remain in effect have been made by either
party which are not expressly set forth in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Minnesota. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Validity</I></FONT><FONT SIZE=2>. The invalidity or unenforceability or any provision 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. </FONT></P>
</UL>
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<TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="51%" COLSPAN=3><FONT SIZE=2>MINNTECH CORPORATION</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>EXECUTIVE:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;<BR>
By</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="45%"><FONT SIZE=2>&nbsp;<BR></FONT>
<HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;<BR></FONT>
<HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>Its</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="45%"><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>Michael P. Petersen</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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