<SUBMISSION>
<ACCESSION-NUMBER>0001193125-08-200605
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20080919
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20080924
<DATE-OF-FILING-DATE-CHANGE>20080924
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>II-VI INC
<CIK>0000820318
<ASSIGNED-SIC>3827
<IRS-NUMBER>251214948
<STATE-OF-INCORPORATION>PA
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-16195
<FILM-NUMBER>081086751
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>375 SAXONBURG BLVD
<CITY>SAXONBURG
<STATE>PA
<ZIP>16056
<PHONE>724-352-4455
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>375 SAXONBURG BLVD
<CITY>SAXONBURG
<STATE>PA
<ZIP>16056
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:3px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>WASHINGTON, DC 20549 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 8-K </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>CURRENT REPORT PURSUANT </B>
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>TO SECTION&nbsp;13 OR 15(D) OF THE </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="3"><B>SECURITIES EXCHANGE ACT OF 1934 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Date of report (Date of earliest event reported)
September&nbsp;19, 2008 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>II-VI Incorporated </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact Name of
Registrant as Specified in Its Charter) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Pennsylvania </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or Other Jurisdiction of Incorporation) </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>0-16195</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>25-1214948</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Commission File Number)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(IRS Employer Identification No.)</B></FONT></TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>375 Saxonburg Boulevard, Saxonburg, Pennsylvania</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>16056</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of Principal Executive Offices)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(724) 352-4455 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>(Registrant&#146;s Telephone Number, Including Area Code) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Not Applicable </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Former Name or Former Address, if Changed Since Last Report) </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction A.2. below):
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:3px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;5.02</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers </B></FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">(e) On September&nbsp;19, 2008, II-VI Incorporated (Nasdaq: IIVI) (&#147;II-VI&#148; or the &#147;Company&#148;) entered into Amended and Restated Employment Agreements
with Francis J. Kramer, President and Chief Executive Officer, and Vincent D. Mattera, Jr., Vice President Compound Semiconductor Group. A copy of these Amended and Restated Employment Agreements are filed as Exhibits 10.1 and 10.2, respectively, to
this report and incorporated herein by reference. In addition, on September 19, 2008 the Company entered into Employment Agreements with Craig A. Creaturo, Chief Financial Officer and Treasurer, and James Martinelli, Vice President
Military&nbsp;&amp; Materials Businesses. A copy of these Employment Agreements are filed as Exhibits 10.3 and 10.4, respectively, to this report and incorporated herein by reference. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Each of these employment agreements contain provisions regarding confidentiality, intellectual property, non-competition and non-solicitation.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The following are a summary of certain provisions of each of these employment agreements: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B><U>Francis J. Kramer </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the terms of his Amended and Restated Employment Agreement, Mr.&nbsp;Kramer
will receive an annual base salary of $433,000 and will be eligible for cash and other bonuses in the discretion of the Company. Mr.&nbsp;Kramer also will be eligible to participate in the full range of benefits offered to other Company employees,
and will be eligible to participate in the Company&#146;s 2005 Omnibus Incentive Plan. Mr.&nbsp;Kramer will also receive an enhanced life insurance and long-term disability benefit. If Mr.&nbsp;Kramer&#146;s Amended and Restated Employment Agreement
is terminated by the Company without &#147;cause,&#148; by Mr.&nbsp;Kramer for &#147;good reason&#148; (each as defined in Mr.&nbsp;Kramer&#146;s Amended and Restated Employment Agreement), in the event of death or permanent disability, or in
connection with a change of control of the Company (as defined in Mr.&nbsp;Kramer&#146;s Amended and Restated Employment Agreement), Mr.&nbsp;Kramer will be entitled to cash severance payments based on formulas set forth in Mr.&nbsp;Kramer&#146;s
Amended and Restated Employment Agreement. The payment of severance is conditioned on the execution by Mr. Kramer of a release of liability in favor of the Company. Severance payments are not subject to any tax gross-up. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><U>Vincent D. Mattera, Jr. </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the terms of his Amended
and Restated Employment Agreement, Dr.&nbsp;Mattera will receive an annual base salary of $208,500 and will be eligible for cash and other bonuses in the discretion of the Company. Dr.&nbsp;Mattera also will be eligible to participate in the full
range of benefits offered to other Company employees, and will be eligible to participate in the Company&#146;s 2005 Omnibus Incentive Plan. If Dr.&nbsp;Mattera&#146;s Employment Agreement is terminated (i) by the Company without &#147;cause,&#148;
or (ii) by the Company for any reason or by Dr.&nbsp;Mattera for &#147;good reason&#148; in each case in connection with a change of control of the Company (each as defined in Dr.&nbsp;Mattera&#146;s Employment Agreement), Dr.&nbsp;Mattera will be
entitled to cash severance payments based on formulas set forth in Dr.&nbsp;Mattera&#146;s Employment Agreement. The payment of severance is conditioned on the execution by Dr. Mattera of a release of liability in favor of the Company. Severance
payments are not subject to any tax gross-up. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><U>Craig A. Creaturo </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Pursuant to the terms of his Employment Agreement, Mr.&nbsp;Creaturo will receive an annual base salary of $205,000 and will be eligible for cash and other bonuses in the discretion of the Company. Mr.&nbsp;Creaturo
also will be eligible to participate in the full range of benefits offered to other Company employees, and will be eligible to participate in the Company&#146;s 2005 Omnibus Incentive Plan. If Mr.&nbsp;Creaturo&#146;s Employment Agreement is
terminated (i) by the Company </FONT>
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<FONT FACE="Times New Roman" SIZE="2">without &#147;cause,&#148; or (ii) by the Company for any reason or by Mr.&nbsp;Creaturo for &#147;good reason&#148; in each case in connection with a change
of control of the Company (each as defined in Mr.&nbsp;Creaturo&#146;s Employment Agreement), Mr.&nbsp;Creaturo will be entitled to cash severance payments based on formulas set forth in Mr.&nbsp;Creaturo&#146;s Employment Agreement. The payment of
severance is conditioned on the execution by Mr. Creaturo of a release of liability in favor of the Company. Severance payments are not subject to any tax gross-up. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B><U>James Martinelli </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the terms of his Employment Agreement, Mr.&nbsp;Martinelli will receive an
annual base salary of $188,000 and will be eligible for cash and other bonuses in the discretion of the Company. Mr.&nbsp;Martinelli also will be eligible to participate in the full range of benefits offered to other Company employees, and will be
eligible to participate in the Company&#146;s 2005 Omnibus Incentive Plan. If Mr.&nbsp;Martinelli&#146;s Employment Agreement is terminated (i) by the Company without &#147;cause,&#148; or (ii) by the Company for any reason or by Mr.&nbsp;Martinelli
for &#147;good reason&#148; in each case in connection with a change of control of the Company (each as defined in Mr.&nbsp;Martinelli&#146;s Employment Agreement), Mr.&nbsp;Martinelli will be entitled to cash severance payments based on formulas
set forth in Mr.&nbsp;Martinelli&#146;s Employment Agreement. The payment of severance is conditioned on the execution by Mr. Martinelli of a release of liability in favor of the Company. Severance payments are not subject to any tax gross-up.
</FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;9.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Financial Statements and Exhibits </B></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(d)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibits </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amended and Restated Employment Agreement by and between II-VI&nbsp;Incorporated and Francis J. Kramer dated September&nbsp;19, 2008</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">Exhibit 10.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Amended and Restated Employment Agreement by and between II-VI Incorporated and Vincent D. Mattera, Jr. dated September 19, 2008</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">Exhibit 10.3</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Employment Agreement by and between II-VI&nbsp;Incorporated and Craig A. Creaturo dated September&nbsp;19, 2008</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">Exhibit 10.4</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Employment Agreement by and between II-VI&nbsp;Incorporated and James Martinelli dated September&nbsp;19, 2008</FONT></TD></TR>
</TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="48%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">(Registrant)</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Date: September&nbsp;24, 2008</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/ Francis J. Kramer</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Francis J. Kramer</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">President and Chief Executive Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Date: September&nbsp;24, 2008</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/ Craig A. Creaturo</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Craig A. Creaturo</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Chief Financial Officer and Treasurer</FONT></TD></TR>
</TABLE>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>dex101.htm
<DESCRIPTION>AMENDED AND RESTATED EMPLOYMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Amended and Restated Employment Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B><U>Exhibit 10.1 </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">AMENDED AND RESTATED </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>EMPLOYMENT AGREEMENT </U></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">THIS AMENDED AND RESTATED AGREEMENT (&#147;Agreement&#148;) made and entered into this 19th day of September, 2008. </FONT></P> <P
STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">BY AND BETWEEN </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED, a
Pennsylvania corporation, having a principal place of business at 375 Saxonburg Boulevard, Saxonburg, Butler County, Pennsylvania 16056, hereinafter referred to as &#147;Employer&#148;, </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">AND </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Francis J. Kramer of 10491 Allante Court, Gibsonia, Pennsylvania 15044,
hereinafter referred to as the &#147;Employee&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Employer and Employee entered into an Employment Agreement dated
August&nbsp;3, 1987, as amended and restated effective July&nbsp;1, 2007 (the &#147;Prior Agreement&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Employer employs the
Employee as Chief Executive Officer and provides Employee with certain additional benefits; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Employee has assumed a position
of confidentiality, trust and importance with the Employer, and has information, knowledge and experience with the Employer which would be hard to replace and which would also place the Employer at a competitive disadvantage should Employee accept
employment with or otherwise assist a competitor; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Employer and Employee desire to amend and restate the Prior Agreement in
its entirety as set forth below. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in consideration of the mutual covenants herein contained and intending to be legally
bound hereby, the parties hereto agree to the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <U>Position</U>. Employer shall continue to employ the Employee as President
and Chief Executive Officer to perform such duties as may be determined and assigned to him by the Board of Directors of Employer. This Agreement shall remain in effect until terminated in accordance with Section&nbsp;9. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Compensation</U>. In consideration of the services to be performed by the Employee, the Employer agrees to pay the Employee a salary of Four
Hundred Thirty-three Thousand Dollars ($433,000) per annum in equal installments at the regularly scheduled pay dates of the Employer (&#147;Annual Base Salary&#148;), together with any cash bonuses (&#147;Annual Cash Bonus&#148;) and other bonuses
in the discretion of the Employer in accordance with the terms and conditions of the Employer&#146;s plans. The Annual Base Salary may be modified from time to time at the sole discretion of the Employer. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. <U>Fringe Benefits</U>. Employer agrees to provide the Employee with the fringe benefits which are routinely provided to the employees of the
Employer, and further agrees that the employee shall be eligible to participate in the Employer&#146;s Omnibus Incentive Plan or plans existing from time to time, but any stock options to be received under any such plan shall be granted solely in
the discretion of the Board of Directors or the appropriate Board committee. Employer agrees to provide the Employee with life insurance coverage in an amount equal to two (2)&nbsp;times the Annual Base Salary. The Employer agrees to provide the
Employee with a long-term disability benefit which will provide the Employee with a disability benefit in an amount equal to sixty percent (60%)&nbsp;of his annual Base Salary in excess of Two Hundred Thousand Dollars ($200,000) (&#147;Supplemental
Disability Benefit&#148;). The Supplemental Disability </FONT>
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<FONT FACE="Times New Roman" SIZE="2">Benefit will be payable to the Employee provided the Employee has satisfied and continues to satisfy the eligibility provisions and been determined to be
disabled under the Employer&#146;s long-term disability plan provided to all employees of the Employer. The Employer shall pay directly to Employee the Supplemental Disability Benefit in equal monthly installments, subject to all applicable
withholding as required by law, and shall provide the Employee with the Supplemental Disability Benefit until Employee attains the age of sixty-six (66). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">4. <U>Best Efforts</U>. Employee covenants and agrees to devote all of his business time and efforts to the faithful performance of the duties assigned to him from time to time by the Employer, except to the extent
that such outside time and effort is approved by the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. <U>Confidentiality</U>. The Employee, during the term of employment
under this Agreement, will have access to and become familiar with various trade or business secrets, including but not limited to drawings, processes, technical information and data, scientific data, business methods, forms and contracts, as well
as compilations of information, records and specifications, customer lists and marketing and sales data, which are owned by Employer or its customers (&#147;Information&#148;). During the term of this Agreement and at all times after termination of
this Agreement, unless authorized in writing by Employer, Employee will not use the Information for Employee&#146;s or any third party&#146;s benefit or advantage or disclose the Information or cause it to be disclosed, or permit disclosure of it to
any third party, or use the Information in any way which would be detrimental to the Employer. Employee will not be liable to the Employer for the disclosure of Information: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">which was known to the Employee on a non-confidential basis prior to the Employee&#146;s employment with Employer and Employee&#146;s prior knowledge is established by written
documents in Employee&#146;s files which predate execution of this Agreement; or </FONT></TD></TR></TABLE>

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<TR>
<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">which is received rightfully by Employee on a non-confidential basis; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(c)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">which is subject to any disclosure laws or becomes part of the public domain. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">In any judicial proceeding, it will be presumed that the Information constitutes protectable trade secrets and Employee will bear the burden of proving that any Information is publicly or rightfully known by Employee. All Information and
equipment relating to the business of Employer, whether purchased or prepared by the Employee or otherwise coming into his possession, shall remain the exclusive property of Employer and shall not be removed from the premises of Employer under any
circumstances whatsoever without the prior written consent of Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <U>Inventions</U>. Any and all developments, discoveries,
inventions, enhancements, modifications and improvements (&#147;Inventions&#148;) created or developed by Employee either alone or with others during the term of his or her employment, whether or not during working hours and whether on the
Employer&#146;s premises or elsewhere, will be the sole and exclusive property of Employer if the Invention is: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">within the scope of Employee&#146;s duties assigned or implied in accordance with his or her position; or </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a product, service, or other item which would be in competition with the products or services offered by Employer or which is related to Employer&#146;s products or services,
whether presently existing, under development, or under active consideration; or </FONT></TD></TR></TABLE>

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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(c)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">in whole or in part, the result of Employee&#146;s use of Employer&#146;s resources, including without limitation personnel, computers, equipment, office facilities or otherwise.
</FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Employee will disclose promptly to Employer any and all Inventions and will reduce such disclosure to a detailed writing upon request by
Employer. During the term of Employee&#146;s employment with Employer and after termination of such employment, if Employer should then so request, Employee agrees to assign and does hereby assign to Employer all rights in the Inventions. Employee
agrees to execute and deliver to Employer any instruments Employer deems necessary to vest in Employer the sole title to and all exclusive rights in the Inventions. Employee agrees to execute and deliver to Employer all proper papers for use in
applying for, obtaining, maintaining, amending and enforcing any legal protections as the Employer may desire. Employee further agrees to assist fully Employer or its nominees in the preparation and prosecution of any litigation connected with the
Inventions. Employee&#146;s obligations and covenants in this Section will be binding upon Employee&#146;s heirs, legal representatives, successors and assigns. Employee agrees that there are no patents, patents pending, copyrights, trademarks,
trade names, inventions, writings, drawings and the like, whether or not patentable or copyrightable, that are owned by Employee and were made or conceived by Employee prior to employment by Employer. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. <U>Non-solicitation</U>. Employee hereby expressly covenants and agrees that at no time during the term of his employment, or for a period of two
(2)&nbsp;years immediately following the termination of his employment, whether said termination is occasioned by Employer, the Employee, or the mutual agreement of said parties, will he, for himself, or on behalf of any other person, persons, firm,
partnership, corporation, or company, call upon any customer or </FONT>
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<FONT FACE="Times New Roman" SIZE="2">customers, client or clients of Employer for the purpose of soliciting, selling, or both, to any of said customers or clients, any services or products that
are the same or similar to those provided and/or produced by Employer, nor will Employee, in any way directly or indirectly, for himself or on behalf of or in conjunction with any other person, firm, partnership, corporation, company or any other
entity, solicit, divert, or take away any such customers or clients of Employer during the term of this employment or for two (2)&nbsp;years immediately following the termination of this Agreement. The non-solicitation period set forth in this
Section&nbsp;7 shall be extended for an additional one (1)&nbsp;year period if the Employee receives severance pay under Section&nbsp;10(d) of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">8. <U>Non-compete</U>. The Employee covenants and agrees that upon the termination of his employment for any reason, the Employee will not enter into or engage generally in direct or indirect competition with Employer
within the Restricted Territory in the business of infrared, electronic or electro-optic materials, optics, components and detectors in direct competition with products made by Employer, whether as an individual on his own, or as a partner or joint
venturer, or as an employee or agent for any person or company, or as a five percent (5%)&nbsp;or more investor, officer, director, shareholder or otherwise, for a period of two (2)&nbsp;years after the date of termination of his employment
hereunder. The &#147;Restricted Territory&#148; means anywhere in the world where the products of the Employer are marketed or sold. This covenant on the part of the Employee shall be construed as an agreement independent of any other provision of
this Agreement; and the existence of any claim or cause of action of the Employee against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of this covenant. The non-compete
period set forth in this Section&nbsp;8 shall be extended for an additional one (1)&nbsp;year period if the Employee receives severance pay under Section&nbsp;10(d) of this Agreement. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. <U>Termination of Agreement</U>. The employment relationship of the parties hereto may be terminated
by either party upon thirty (30)&nbsp;days written notice to the other party at any time, with or without Cause (as defined in Section&nbsp;10 below). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">10. <U>Severance</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <U>Termination for Cause</U>. Upon the termination of the Employee&#146;s
employment for Cause, the Employee shall not be entitled to any severance, termination or other payments other than unpaid Annual Base Salary earned by the Employee up to the date of termination. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>(b) <U>Termination on Death or Disability or by Employee without Good Reason</U>. On termination of the Employee&#146;s employment as a result of
the Employee&#146;s death or as a result of the Employee having become permanently disabled, the Employer shall pay to the Employee or his personal representative on behalf of the Estate of the Employee, his Annual Base Salary through the last day
of the fiscal year in which the date of death or disability occurs and payment of any bonuses that would have been paid to Employee for such fiscal year had Employee remained employed by the Employer, which bonuses shall not be prorated because the
Employee was not employed for the full fiscal year. Any such payments shall be made not later than the 15th day of the third month following the Employer&#146;s fiscal year in which the Employee dies or becomes disabled. On the termination of
employment by the Employee for other than Good Reason (as defined below), the Employer shall promptly pay to the Employee any unpaid Annual Base Salary and bonuses, on a pro rata basis, earned by the Employee up to the date of termination in
accordance with the Employer&#146;s established payroll practices.<B> </B></FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) <U>Termination without Cause or by Employee for Good Reason</U>. Subject to the provisions of
Sections 10(e) and 10(f) of this Agreement, if the Employer involuntarily terminates the Employee&#146;s employment without Cause or the Employee terminates the Employee&#146;s employment for Good Reason, except when such termination is coincident
with or within an eighteen (18)&nbsp;month period following the occurrence of a Change in Control (as defined below), the Employer shall pay Employee severance pay in an amount equal to 2 multiplied by the Employee&#146;s Average Annual Income . For
purposes of this subparagraph, &#147;Average Annual Income&#148; shall be calculated as the sum of the Employee&#146;s Annual Base Pay and Annual Cash Bonus for the preceding three (3)&nbsp;fiscal years of the Employer divided by three (3). The
severance pay will be paid to the Employee no later than 60&nbsp;days after the date of termination after the expiration of any applicable revocation periods set forth in the Release (as defined below). This severance payment will not be considered
compensation for the purpose of any other fringe benefit plan of the Employer. To the extent the Employee elects to continue health insurance coverage under COBRA, the Company will pay the premiums for such coverage for a period of up to eighteen
(18)&nbsp;months under the terms specified in Section&nbsp;10(d)(1) below. The Employer shall also pay the Employee, no later than 60&nbsp;days after the date of termination, a lump sum cash payment of $15,000 in order to cover the cost of
post-termination benefit coverage and expenses associated with seeking another employment position. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(d) <U>Termination after Change in
Control</U>. Subject to the provisions of Sections 10(e) and 10(f) of this Agreement, if the Employer involuntarily terminates the Employee&#146;s employment without Cause or the Employee terminates the Employee&#146;s employment for Good Reason,
and such termination is coincident with or within an eighteen (18)&nbsp;month period following the occurrence of a Change in Control, the Employer shall pay Employee severance </FONT>
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<FONT FACE="Times New Roman" SIZE="2">pay in an amount equal to 2.99 multiplied by the Employee&#146;s Average Annual Income. For purposes of this subparagraph &#147;Average Annual Income&#148;
shall be calculated as the sum of the Employee&#146;s Annual Base Pay and Annual Cash Bonus for the preceding five (5)&nbsp;fiscal years of the Employer divided by five (5). The severance pay will be paid to the Employee within the period specified
in Section&nbsp;10(d)(3) below after the expiration of any applicable revocation periods set forth in the Release. This severance payment will not be considered compensation for the purpose of any other fringe benefit plan of the Employer.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(1) To the extent permitted by applicable law and the Employer&#146;s benefit plans, the Employer shall maintain the Employee&#146;s paid
coverage for health insurance through the payment of the Employee&#146;s COBRA premiums until the earlier to occur of: (a)&nbsp;the date the Employee is provided by another employer benefits substantially comparable to the health insurance benefits
provided by the Employer (which the Employee must provide prompt notice with respect thereto to the Employer), or (b)&nbsp;the expiration of the COBRA Continuation Period. During the applicable period of coverage described in the foregoing sentence,
the Employee shall be entitled to benefits, on substantially the same basis as would have otherwise been provided had the Employee not been terminated and the Employer will have no obligation to pay any benefits to, or premiums on behalf of, the
Employee after such period ends. To the extent that such benefits are available under the Employer&#146;s benefit plans and the Employee had such coverage immediately prior to termination of employment, such continuation of benefits for the Employee
shall also cover the Employee&#146;s dependents for so long as the Employee is receiving such benefits under this Section&nbsp;10(d)(1). The COBRA Continuation Period for health insurance under this Section&nbsp;10(d)(1) shall be deemed to run
concurrent with the continuation period federally mandated by COBRA (generally 18 months), or any other legally mandated and applicable federal, state, or local coverage period for benefits provided to terminated employees under the health care
plan(s). </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(2) The Employer shall also pay Employee a lump sum cash payment of $40,000 in order to cover the cost of
post-termination benefit coverage and expenses associated with seeking another employment position. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(3) All payments to be made pursuant
to Section&nbsp;10(d)(2) shall be made, in lump sum, no later than sixty (60)&nbsp;days after the date of termination; provided, however, that all benefits due under Section&nbsp;10(d)(1) shall be provided as specified thereunder. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(e) <U>Reduction of Severance Payments</U>. Notwithstanding anything to the contrary contained in Sections 10(c) and 10(d) above, in the event the
Employer determines that part or all of the consideration, compensation or benefits to be paid to the Employee under this Agreement constitute &#147;parachute payments&#148; under Section&nbsp;280G(b)(2) of the Internal Revenue Code of 1986, as
amended (the &#147;IRC&#148;), then, if the aggregate present value of such parachute payments, together with the aggregate present value of any consideration, compensation or benefits to be paid to the Employee under any other plan, arrangement or
agreement which constitute &#147;parachute payments&#148; (collectively, the &#147;Parachute Amount&#148;) exceeds 2.99 times the Employee&#146;s &#147;base amount&#148;, as defined in Section&nbsp;280G(b)(3) of the IRC (the &#147;Employee&#146;s
Base Amount&#148;), the amounts payable hereunder constituting &#147;parachute payments&#148; which would otherwise be payable to or for the benefit of the Employee shall be reduced to the extent necessary so that the Parachute Amount is equal to
2.99 times the Employee&#146;s Base Amount. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(f) <U>Conditions to Receipt of Severance Benefits/Repayment of Severance Benefits</U>.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(1) As a condition to receiving any severance benefits to which the Employee may otherwise be entitled under Sections 10(c) and 10(d) of
this Agreement (the &#147;Severance </FONT>
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<FONT FACE="Times New Roman" SIZE="2">Benefits&#148;), the Employee shall execute, deliver and not revoke a release and waiver (the &#147;Release&#148;), in a form provided by the Employee, of
any claims, whether arising under Federal, state or local statute, common law or otherwise, against the Employer and its subsidiaries. Unless otherwise required by applicable law, the Release must be executed by the Employee within thirty
(30)&nbsp;days of the date of termination. If the Employee fails or otherwise refuses to execute a Release within the time specified herein, or revokes the Release, the Employee will not be entitled to any such Severance Benefits and the Employer
shall have no further obligations with respect to the payment of the Severance Benefits. In addition, if following a termination of employment that gives the Employee a right to the payment of Severance Benefits, the Employee engages in any
activities that would have violated any of the covenants in Sections 5, 6, 7 and 8 of this Agreement, the Employee shall have no further right or claim to any Severance Benefits from and after the date on which the Employee engages in such
activities and the Employer shall have no further obligations with respect to the payment of the Severance Benefits. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(2) If Employee
violates any of the Employee&#146;s obligations set forth in Sections&nbsp;5, 6, 7 and 8 of this Agreement, the Employer after becoming aware of such violation may provide written notice of such violation or breach to the Employee and request
repayment of Severance Benefits. The Employee agrees that in the event of such a violation within ten (10)&nbsp;days after the date the Employer provides notice to the Employee, the Employee shall pay to the Employer, in a form acceptable to the
Employer, a dollar amount equal to any Severance Benefits paid to or on behalf of the Employee pursuant to Section&nbsp;10(c) and 10(d) of this Agreement. The Employee agrees that failure to make such timely payment to the Employer constitutes an
independent and material breach of the terms and conditions of this Agreement, for which the Employer may seek recovery of the unpaid amount as liquidated damages, in </FONT>
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<FONT FACE="Times New Roman" SIZE="2">addition to all other rights and remedies the Employer may have resulting from the Employee&#146;s breach of the obligations set forth in Sections&nbsp;5, 6,
7 and 8 of this Agreement. The Employee agrees that timely payment to the Employer as set forth in this Section&nbsp;10(f)(2) is reasonable and necessary because the compensatory damages that will result from breaches of Sections&nbsp;5, 6, 7 and 8
of this Agreement cannot readily be ascertained. Further, the Employee agrees that timely payment to the Employer as set forth in this Section&nbsp;10(f) is not a penalty, and it does not preclude the Employer from seeking all other remedies
including injunctive relief that may be available to the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(g) <U>Section&nbsp;409A</U>/<U>Termination of Employment</U>. The
provisions of this Agreement will be administered, interpreted and construed in a manner intended to comply with Section&nbsp;409A of the Internal Revenue Code (&#147;Section 409A&#148;), the regulations issued thereunder or any exception thereto
(or disregarded to the extent such provision cannot be so administered, interpreted, or construed). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(1) For purposes of the Agreement, the
Employee shall be considered to have experienced a termination of employment only if the Employee has terminated employment with the Employer and all of its controlled group members within the meaning of Section&nbsp;409A of the Code. For purposes
hereof, the determination of controlled group members shall be made pursuant to the provisions of Section&nbsp;414(b) and 414(c) of the Code; provided that the language &#147;at least 50 percent&#148; shall be used instead of &#147;at least 80
percent&#148; in each place it appears in Section&nbsp;1563(a)(1),(2) and (3)&nbsp;of the Code and Treas. Reg. &#167; 1.414(c)-2; provided, further, where legitimate business reasons exist (within the meaning of Treas. Reg. &#167; 1.409A-1(h)(3)),
the language &#147;at least 20 percent&#148; shall be used instead of &#147;at least 80 percent&#148; in each place it appears. Whether the Employee has terminated employment will be determined based on all of the facts and circumstances and in
accordance with the guidance issued under Section&nbsp;409A of the Code. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%;padding-bottom:3px;line-height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">(2) For purposes of Section&nbsp;409A, each
severance benefit payment shall be treated as a separate payment. Each payment under this Agreement is intended to be excepted from Section&nbsp;409A to the maximum extent provided under Section&nbsp;409A as follows: (i)&nbsp;each payment that is
scheduled to be made following the Employee&#146;s termination date and within the applicable 2<FONT SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">2</FONT><FONT FACE="Times New Roman" SIZE="2"> month period specified in
Treas. Reg. &#167; 1.409A-1(b)(4) is intended to be excepted under the short-term deferral exception as specified in Treas. Reg. &#167; 1.409A-1(b)(4); (ii)&nbsp;post-termination medical benefits are intended to be excepted under the medical
benefits exception as specified in Treas. Reg. &#167; 1.409A-1(b)(9)(v)(B), and (iii)&nbsp;each payment that is not otherwise excepted under the short-term deferral exception or medical benefits exception is intended to be excepted under the
involuntary pay exception as specified in Treas. Reg. &#167; 1.409A-1(b)(9)(iii). The Employee shall have no right to designate the date of any payment under this Agreement. </FONT></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(3) With respect to payments subject to Section&nbsp;409A of the Code (and not excepted therefrom), if any, it is intended that each payment is paid on
permissible distribution event and at a specified time consistent with Section&nbsp;409A of the Code. The Employer reserves the right to accelerate and/or defer any payment to the extent permitted and consistent with
Section&nbsp;409A.&nbsp;Notwithstanding any provision of this Agreement to the contrary, to the extent that a payment hereunder is subject to Section&nbsp;409A of the Code (and not excepted therefrom) and payable on account or a termination of
employment, such payment shall be delayed for a period of six months after the date of termination (or, if earlier, the death of the Employee) if the Employee is a &#147;specified employee&#148; (as defined in Section&nbsp;409A of the Code and
determined in accordance with the procedures established by the Employer). Any payment that would </FONT>
</P>

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<FONT FACE="Times New Roman" SIZE="2">otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period in the month following the
month containing the six (6)&nbsp;month anniversary of the date of termination. Notwithstanding any provision of this Agreement to the contrary, to the extent the timing of any severance benefit payment due under this Agreement was modified pursuant
to the transition guidance provided by the IRS concerning the time and form of payment, any such modification shall only apply to amounts that would not otherwise be payable in 2008 and may not cause an amount to be paid in 2008 that would not
otherwise be paid in 2008. To the extent any such payment can not be made in 2008 under the transition guidance, such payment will be made in January 2009. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">(h) <U>Definitions</U>. For purposes of this Agreement, the following definitions shall have the following meanings: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">(1) &#147;<U>Cause</U>&#148; shall mean a determination by the Board of Directors, in the exercise of its reasonable judgment, that any of the following has occurred: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) the willful and continued failure by the Employee to perform his duties and responsibilities with the Employer under this Agreement
(other than any such failure resulting from incapacity due to physical or mental illness or disability) which is not cured within thirty (30)&nbsp;days of receiving written notice from the Employer specifying in reasonable detail the duties and
responsibilities which the Employer believes are not being adequately performed; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(ii) the willful engaging by the Employee
in any act which is materially damaging to the Employer; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(iii) the conviction of the Employee of, or a plea of
&#147;guilty&#148; or &#147;no contest&#148; to, (A)&nbsp;any felony or (B)&nbsp;a criminal offense involving fraud, dishonesty or other moral turpitude; </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(iv) any material breach by the Employee of the terms of this Agreement or any other
written agreement between the Employee and the Employer relating to proprietary information, confidentiality, non-competition or non-solicitation; or </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(v) the engaging by the Employee in any intentional act of dishonesty resulting or intended to result, directly or indirectly, in personal gain to the Employee at the Employer&#146;s expense. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(2) &#147;<U>Change in Control</U>&#148; shall be deemed to have occurred when (i)&nbsp;the Employer is merged or consolidated with another entity the
result of which is that immediately following such transaction (A)&nbsp;the persons who were the shareholders of the Employer immediately prior to such transaction have less than a majority of the voting power of the Employer or the entity owing or
controlling the Employer or (B)&nbsp;the individuals who comprised the Board of Directors of the Employer immediately prior such transaction cease to be at least a majority of the members of the Board of Directors of the Employer or of the entity
controlling the Employer, or (ii)&nbsp;a majority of the Employer&#146;s assets are sold or otherwise transferred to another corporation not controlled by or under common control with the Employer or to a partnership, firm, entity or one or more
individuals not so controlled, or (iii)&nbsp;a majority of the members of the Employer&#146;s Board of Directors consists of persons who were not nominated for election as directors by or on behalf of the Employer&#146;s Board of Directors or with
the express concurrence of the Employer&#146;s Board of Directors, or (iv)&nbsp;a single person, or a group of persons acting in concert, obtains voting control over a majority of the Employer&#146;s outstanding voting shares; provided, however,
that a Change in Control shall not have occurred as of result of any </FONT>
</P>

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<FONT FACE="Times New Roman" SIZE="2">transaction in which Carl J. Johnson, and/or his affiliates, including the II-VI Incorporated Foundation, directly or indirectly, acquire more than a
majority of the assets or stock of the Employer or of the entity controlling the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(3) &#147;<U>Good Reason</U>&#148; means,
without the Employee&#146;s express written consent: (i)&nbsp;a material reduction of Employee&#146;s employment responsibilities; (ii)&nbsp;a material reduction by the Employer of the Employee&#146;s eligibility for Total Target Compensation as in
effect immediately prior to such reduction. &#147;Total Target Compensation&#148; shall mean the Employee&#146;s annual base salary plus the cash and stock compensation the Employee is eligible to receive at one hundred percent
(100%)&nbsp;performance, whether sales incentive, bonus or otherwise; (iii)&nbsp;a material increase in the amount of Employee&#146;s business travel which produces a constructive relocation of Employee; (iv)&nbsp;a material reduction by the
Employer in the kind or level of employee benefits to which the Employee is entitled immediately prior to such reduction with the result that the Employee&#146;s overall benefits package is significantly reduced; or (v)&nbsp;the relocation of the
Employee to a facility or a location more than fifty (50)&nbsp;miles from Saxonburg, Pennsylvania. In order for the Employee to terminate for Good Reason, (A)&nbsp;the Employer must be notified by the Employee in writing within ninety (90)&nbsp;days
of the event constituting Good Reason, (B)&nbsp;the event must remain uncorrected by the Employer for thirty (30)&nbsp;days following such notice (the &#147;Notice Period&#148;), and (C)&nbsp;such termination must occur within sixty (60)&nbsp;days
after the expiration of the Notice Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11. <U>Return of Property</U>. Employee agrees, upon the termination of his employment with
Employer for any reason whatsoever, to return to an officer of Employer all equipment, records, copies of records, papers, and other work product pertaining to any work performed by Employee while associated with Employer; and in the event Employee
shall fail to do so, or in </FONT>
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<FONT FACE="Times New Roman" SIZE="2">the event Employee shall violate this Agreement, Employee shall forfeit all claims to unpaid compensation or severance pay without affecting the right of
Employer to compel the return of said records and papers. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">12. <U>Severability</U>. In the event that, and if for any reason, any portion
of this Agreement shall be held to be invalid or unenforceable, it is agreed that the same shall not affect any other portion of this Agreement, but that the remaining covenants and restrictions or portions thereof shall remain in full force and
effect, and that if the validity or unenforceability is due to the unreasonableness of the time or geographical area covered by said covenants and restrictions, said covenants and restrictions of this Agreement shall nevertheless be effective for
such period of time and for such area as may be determined to be reasonable by a Court of competent jurisdiction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">13. <U>Modification;
Waiver</U>. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of the Employee by the Employer and contains all of the covenants and agreements between the
parties with respect to such employment in any manner whatsoever. No alterations, amendments, changes or additions to this Agreement will be binding upon either Employer or Employee unless reduced in writing and signed by both parties. No waiver of
any right arising under this Agreement made by either party will be valid unless given in a writing signed by both parties. Notwithstanding the foregoing or any provision of this Agreement to the contrary, the Employer may at any time (after
consultation with the Employee) modify, amend or terminate any or all of the provisions of this Agreement or take any other action, to the extent necessary or advisable to conform the provisions of this Agreement or the benefits provided thereunder
with Section&nbsp;409A of the Code, the regulations issued thereunder or an exception thereto. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">14. <U>Governing Law</U>. This Agreement shall be governed by and construed in accordance with the laws
of the Commonwealth of Pennsylvania. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">15. <U>Prior Agreements</U>. Employee warrants and represents that Employee&#146;s performance under
this Agreement will not violate any other agreement to which Employee is a party and that Employee will not bring any materials which are proprietary to a third party to Employer without the prior written consent of such third party. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">16. <U>Arbitration</U>. Any dispute arising out of or relating to this Agreement or the breach, termination or validity hereof shall be finally settled
by arbitration conducted expeditiously in accordance with the Center of Public Resources Rules for Non-Administered Arbitration of Business Disputes by three independent and impartial arbitrators. Each party shall appoint one of such arbitrators,
and the two arbitrators so appointed shall appoint the third arbitrator. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. &#167;&#167;1-16, and judgment on the award rendered by the arbitrators may be entered by any
court having jurisdiction thereof. The place of arbitration shall be Pittsburgh, Pennsylvania. The arbitrators are not empowered to award damages in excess of compensatory damages and each party hereby irrevocably waives any damages in excess of
compensatory damages. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">17. <U>Binding Agreement; Survival</U>. This Agreement is binding upon the parties hereto and their respective
heirs, personal representatives, successors and assigns. Employee agrees that the obligations of Sections 5, 6, 7, 8, 10, 11, 12, 14, 16, 17 and 18 of this Agreement will survive the termination of this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">18. <U>Assignment</U>. Employer may assign its rights under this Agreement to any affiliate or parent of Employer or to any corporation acquiring all or
substantially all of the assets of Employer or to any other corporation into which Employer may be liquidated, merged, or consolidated. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">19. <U>Headings</U>. The headings used in this Agreement are for convenience only and do not constitute
part of the Agreement. All provisions of the Agreement shall be construed as if no headings had been used in the Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS
WHEREOF, the parties hereto intending to be legally bound have set their hands and seals the day and year first above written. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="43%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="9%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="43%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ATTEST:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Robert D. German</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Carl J. Johnson</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Robert D. German, Secretary</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Carl J. Johnson, Chairman</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">WITNESS:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">EMPLOYEE</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michelle L. Freehling</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Francis J. Kramer</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Michelle L. Freehling</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">Francis J. Kramer</FONT></TD></TR>
</TABLE>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>dex102.htm
<DESCRIPTION>AMENDED AND RESTATED EMPLOYMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Amended and Restated Employment Agreement</TITLE>
</HEAD>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B><U>Exhibit 10.2</U> </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">II-VI </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Incorporated </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">II-VI INCORPORATED, 375 Saxonburg Boulevard, Saxonburg, PA 16056 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">General Offices:
724-352-4455&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales: 724-352-1504&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAX:
724-352-4980&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telex: 469864 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>AMENDED AND RESTATED EMPLOYMENT
AGREEMENT </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">THIS AGREEMENT (&#147;Agreement&#148;) made and entered into this 19th day of September, 2008. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">BY AND BETWEEN </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED, a
Pennsylvania corporation, having a principal place of business at 375 Saxonburg Boulevard, Saxonburg, Pennsylvania 16056 hereinafter referred to as the &#147;Employer&#148;, </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">AND </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">VINCENT D. MATTERA, JR. of 601 Applehill Court, Gibsonia, Pennsylvania 15044,
hereinafter referred to as the &#147;Employee&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Employer currently employs the Employee as its Vice-President - Compound
Semiconductor Group; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the parties entered into an Employment Agreement on January&nbsp;23, 2004 (&#147;Employment
Agreement&#148;); and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the parties would like to amend and restate the Employment Agreement in its entirety; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in consideration of the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree to the
following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. Employer shall employ the Employee as Vice President - Compound Semiconductor Group to perform such duties as may be
determined and assigned to him by the President of Employer. This Agreement shall remain in effect until terminated in accordance with Section&nbsp;9. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">2. In consideration of the services to be performed by the Employee, the Employer agrees to pay to the Employee (a)&nbsp;a salary of $208,500 per annum (&#147;Annual Base Salary&#148;) in equal installments at the
regularly scheduled pay dates of the Employer and (b)&nbsp;such cash or stock bonus amounts, if any, payable to employee pursuant to cash or stock bonus plans established or </FONT>
</P>

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<FONT FACE="Times New Roman" SIZE="2">maintained by Employer from time to time in its discretion including, without limitation, Employer&#146;s Discretionary Bonus Plan and Sitewide Bonus
Incentive Plan. Employer also agrees to provide the Employee with fringe benefits and all other benefits from time to time provided to similarly situated executive employees including, without limitation participation in Employer&#146;s omnibus
incentive plan and other bonus plans including, without limitation, Employer&#146;s Discretionary Bonus Plan and Sitewide Bonus Incentive Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">3. Employee covenants and agrees to devote all of his business time and efforts to the faithful performance of the duties assigned to him from time to time by the Employer, except to the extent that outside time and effort is approved by
the Employer. The Employer and Employee acknowledge that from time to time, Employee may either desire or be asked by Employer to engage in business activities or perform business services for the benefit of third parties such as, serving as an
outside director or consultant for another company. In each case, Employee&#146;s involvement in such business activities or services shall be subject to the mutual agreement and approval of both the Employer and Employee. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. The Employee, during the term of his employment with Employer, has and will continue to have access to and become familiar with various trade or
business secrets, including but not limited to drawings, processes, technical information and data, scientific data, business methods, forms and contracts, as well as compilations of information, records and specifications, customer lists and
marketing and sales data, which are owned by Employer or its customers (&#147;Information&#148;). During the term of this Agreement and at all times after termination of this Agreement, unless authorized in writing by Employer, Employee will not use
the Information for Employee&#146;s or any third party&#146;s benefit or advantage or disclose the Information or cause it to be disclosed, or permit disclosure of it to any third party, or use the Information in any way which would be detrimental
to the Employer. Employee will not be liable to the Employer for the disclosure of Information: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) which was known to the Employee on a
non-confidential basis prior to the Employee&#146;s employment with Employer and Employee&#146;s prior knowledge or Information is established by written documents in Employee&#146;s files which predate the execution of this Agreement; or
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) which is received rightfully by Employee on a non-confidential basis; or </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) which is required to be disclosed by employee to comply with applicable laws or regulations or pursuant to a court or administrative order; or
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) which is or becomes within the public domain through no act of the Employee; or </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) which is approved for release by the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">In any judicial proceeding or a competent and appropriate jurisdiction, it will be presumed that the Information constitutes protectable trade secrets and Employee will bear the </FONT>
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<FONT FACE="Times New Roman" SIZE="2">burden of proving that any Information is publicly or rightfully known by Employee. All Information and equipment relating to the business of Employer shall
not be removed from the premises of Employer under any circumstances whatsoever without the prior written consent of Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. Any and
all developments, discoveries, inventions, enhancements, modifications and improvements, (&#147;Inventions&#148;) created or developed by Employee alone or with others during the term of his or her employment, whether or not during working hours and
whether on the Employer&#146;s premises or elsewhere, will be the sole and exclusive property of Employer if the Invention is: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) within
the scope of Employee&#146;s duties assigned or implied in accordance with his or her position; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) a product, service, or other item
which would be in competition with the products or services offered by Employer or which is related to Employer&#146;s products or services, whether presently existing, under development, or under active consideration; or </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) in whole or in part, the result of Employee&#146;s use of Employer&#146;s resources, including without limitation personnel, computers, equipment,
facilities or otherwise. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Employee will disclose promptly to Employer any and all Inventions and will reduce such disclosure to a detailed
writing upon request by Employer. During the term of Employee&#146;s employment with Employer and after termination of such employment, if Employer should then so request, Employee agrees to assign and does hereby assign to Employer all rights in
the Inventions. Employee agrees to execute and deliver to Employer any instruments Employer deems necessary to vest in Employer the sole title to and all exclusive rights in the Inventions. Employee agrees to execute and deliver to Employer all
proper papers for use in applying for, obtaining, maintaining, amending and enforcing any legal protections as the Employer may desire. Employee further agrees to assist fully the Employer or its nominees in the preparation and prosecution of any
litigation connected with the Inventions. Employee&#146;s obligations and covenants in this Section will be binding upon Employee&#146;s heirs, legal representatives, successors and assigns. Employee represents that he is not the owner of any
patents. Any patent, patent pending, copyright, trademark, trade name, invention, writing, drawing and the like which has been previously made by or conceived by Employee or which occurred under his management in connection with his prior employment
is believed to be the property of the prior employer and/or its assigns and is not owned by Employee. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. The Employee covenants and agrees
that at no time during the term of his employment hereunder, or for a period of one (1)&nbsp;year immediately following the termination of his employment for any reason will he, for himself, or on behalf of any other person, persons, firm,
partnership, corporation, or company, call upon any customer of Employer for the purpose of soliciting, selling, or both, to any of said customers, any services or products that are the same or similar to those provided and/or produced by Employer;
nor will Employee, in any way directly or indirectly, for himself or on behalf of or in conjunction with any Competitor, solicit, divert, or take </FONT>
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<FONT FACE="Times New Roman" SIZE="2">away any such customers of Employer during the term of his employment or for one (1)&nbsp;year immediately following the termination of this Agreement. For
purposes of this Agreement, &#147;Employer&#148; shall also include any corporations which are part of a controlled group of corporations which includes II-VI Incorporated. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. The Employee covenants and agrees that upon the termination of his employment for any reason the Employee will not enter into or engage generally in
direct or indirect competition with II-VI Incorporated or its wholly-owned subsidiaries within the Restricted Territory whether as an individual, or as a partner or joint venturer, or as an employee or agent for any Competitor, or as a five percent
(5%)&nbsp;or more investor, officer, director, shareholder or otherwise of a Competitor, for a period of one (1)&nbsp;year after the date of termination of his employment hereunder. For purposes of this Agreement, (i)&nbsp;a &#147;Competitor&#148;
shall mean any corporation, partnership, sole proprietorship or other entity who sells, manufactures, produces or modifies a product or products similar to, or the same as those sold, manufactured, produced or modified by Employer (&#147;Employer
Products&#148;) and (ii)&nbsp;&#147;Restricted Territory&#148; means anywhere in the world where Employer&#146;s Products are marketed or sold. This covenant on the part of the Employee shall be construed as an agreement independent of any other
provision of this Agreement; and the existence of any claim or cause of action of the Employee against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of this covenant.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>8. The Employee covenants and agrees that at no time during the term of his employment or for a period of one (1)&nbsp;year
immediately following the termination of his employment for any reason, will he, for himself, or on behalf of any other person, persons, firm, partnership, corporation, or company hire any person who is employed by the Employer or has been employed
by the Employer within one (1)&nbsp;year of such termination date.<B> </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. The employment relationship of the parties hereto may be
terminated by either party upon thirty (30)&nbsp;days written notice to the other party at any time, with or without cause. The Employer shall continue the payment of wages and benefits through such period although the parties hereto agree that the
Employer may request the Employee to stop performing any duties on behalf of the Employer. In any event, the Employee shall remain an employee of the Employer through the end of such thirty (30)&nbsp;day period. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">10. (a) <U>Termination Without Cause</U>. If, other than in connection with a change of control, the employment of the Employee is terminated by Employer
without Cause, the Employer agrees to pay the Employee severance pay in an amount equal to nine/twelfth&#146;s (9/12)&nbsp;of Employee&#146;s Annual Base Salary which the Employee is receiving at the time of termination. The severance pay will be
paid to the Employee no later than sixty (60)&nbsp;days after the date of termination. The severance pay will not be considered compensation for the purpose of any other fringe benefit program of the Employer. No bonus or any other fringe benefits
will be due the Employee except for his accrued vacation. To the extent the Employee elects to continue health insurance coverage under COBRA, the Company will pay the premiums for such coverage for a period of up to nine (9)&nbsp;months under the
terms specified in Section&nbsp;10(b)(1) below. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <U>Termination after Change in Control</U>. If the Employer terminates the Employee&#146;s employment
without Cause or the Employee terminates the Employee&#146;s employment for Good Reason, and such termination is coincident with or within an eighteen (18)&nbsp;month period following the occurrence of a Change in Control, the Employer shall pay
Employee severance pay in an amount equal to 2.99 multiplied by the Employee&#146;s Average Annual Income. For purposes of this subparagraph &#147;Average Annual Income&#148; shall be calculated as the sum of the Employee&#146;s Annual Base Salary
and Annual Cash Bonus for the preceding five (5)&nbsp;fiscal years of the Employer divided by five (5). The severance pay will be paid to the Employee within the period specified in Section&nbsp;10(b)(3) below after the expiration of any applicable
revocation periods set forth in the Release. This severance payment will not be considered compensation for the purpose of any other fringe benefit plan of the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
FACE="Times New Roman" SIZE="2">(1) To the extent permitted by applicable law and the Employer&#146;s benefit plans, the Employer shall maintain the Employee&#146;s paid coverage for health insurance through the payment of the Employee&#146;s COBRA
premiums until the earlier to occur of: (a)&nbsp;the date the Employee is provided by another employer benefits substantially comparable to the health insurance benefits provided by the Employer (which the Employee must provide prompt notice with
respect thereto to the Employer), or (b)&nbsp;the expiration of the COBRA Continuation Period. During the applicable period of coverage described in the foregoing sentence, the Employee shall be entitled to benefits on substantially the same basis
as would have otherwise been provided had the Employee not been terminated and the Employer will have no obligation to pay any benefits to or premiums on behalf of the Employee after such period ends. To the extent that such benefits are available
under the Employer&#146;s benefit plans and the Employee had such coverage immediately prior to termination of employment, such continuation of benefits for the Employee shall also cover the Employee&#146;s dependents for so long as the Employee is
receiving such benefits under this Section&nbsp;10(b)(1). The COBRA Continuation Period for health insurance under this Section&nbsp;10(b)(1) shall be deemed to run concurrent with the continuation period federally mandated by COBRA (generally 18
months), or any other legally mandated and applicable federal, state, or local coverage period for benefits provided to terminated employees under the health care plan(s). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(2) A lump sum cash payment of Twenty Thousand ($20,000.00) Dollars in order to cover the cost of post-termination benefit coverage and expenses
associated with seeking another employment position. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(3) All payments to be made pursuant to this Section&nbsp;10(b) shall be made, in
lump sum, no later than sixty (60)&nbsp;days after the date of termination; provided, however, that all benefits due under Section&nbsp;10(b)(1) shall be provided as specified thereunder. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <U>Reduction of Severance Payments</U>. Notwithstanding anything to the contrary contained in Section&nbsp;10(b) above, in the event the Employer
determines that part or all of the consideration, compensation or benefits to be paid to the Employee under this Agreement constitute &#147;parachute payments&#148; under Section&nbsp;280G(b)(2) of the Internal Revenue Code of 1986, as amended (the
&#147;IRC&#148;), then, if the aggregate present value of such parachute payments, together with the aggregate present value of any consideration, compensation or benefits to be </FONT>
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<FONT FACE="Times New Roman" SIZE="2">paid to the Employee under any other plan, arrangement or agreement which constitute &#147;parachute payments&#148; (collectively, the &#147;Parachute
Amount&#148;) exceeds 2.99 times the Employee&#146;s &#147;base amount&#148;, as defined in Section&nbsp;280G(b)(3) of the IRC (the &#147;Employee&#146;s Base Amount&#148;), the amounts payable hereunder constituting &#147;parachute payments&#148;
which would otherwise be payable to or for the benefit of the Employee shall be reduced to the extent necessary so that the Parachute Amount is equal to 2.99 times the Employee&#146;s Base Amount. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) <U>Conditions to Receipt of Severance Benefits/Repayment of Severance Benefits</U>. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) As a condition to receiving any severance benefits to which the Employee may otherwise be entitled under Sections 10(a) and 10(b) of this Agreement
(the &#147;Severance Benefits&#148;), the Employee shall execute, deliver and not revoke a release and waiver (the &#147;Release&#148;), in a form provided by the Employee, of any claims, whether arising under Federal, state or local statute, common
law or otherwise, against the Employer and its subsidiaries. Unless otherwise required by applicable law, the release must be executed by the Employee within thirty (30)&nbsp;days of the date of termination. If the Employee fails or otherwise
refuses to execute a Release within the time specified herein, or revokes the Release, the Employee will not be entitled to any such Severance Benefits and the Employer shall have no further obligations with respect to the payment of the Severance
Benefits. In addition, if following a termination of employment that gives the Employee a right to the payment of Severance Benefits, the Employee engages in any activities that would have violated any of the covenants in Sections 4, 5, 6, 7 and 8
of this Agreement, the Employee shall have no further right or claim to any Severance Benefits from and after the date on which the Employee engages in such activities and the Employer shall have no further obligations with respect to the payment of
the Severance Benefits. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(2) If Employee violates any of the Employee&#146;s obligations set forth in Sections&nbsp;4, 5, 6, 7 and 8 of
this Agreement, the Employer after becoming aware of such violation may provide written notice of awareness of such violation or breach to the Employee and request repayment of Severance Benefits. The Employee agrees that, in the event of a such a
violation, within thirty (30)&nbsp;days after the date the Employer provides notice to the Employee, the Employee shall pay to the Employer, in a form acceptable to the Employer, a dollar amount equal to any Severance Benefits paid to or on behalf
of the Employee pursuant to this Agreement. In addition, the parties agree during such thirty (30)&nbsp;day period to use their best efforts to meet to resolve the issues. The Employee agrees that failure to make such timely payment to the Employer
constitutes an independent and material breach of the terms and conditions of this Agreement, for which the Employer may seek recovery of the unpaid amount as liquidated damages, in addition to all other rights and remedies the Employer may have
resulting from the Employee&#146;s breach of the obligations set forth in Sections&nbsp;4, 5, 6, 7 and 8 of this Agreement. The Employee agrees that timely payment to the Employer as set forth in this Section&nbsp;10(d)(2) is reasonable and
necessary because the compensatory damages that will result from breaches of Sections&nbsp;4, 5, 6, 7 and 8 of this Agreement cannot readily be ascertained. Further, the Employee agrees that timely payment to the Employer as set forth in this
Section&nbsp;10(d)(2) is not a penalty, and it does not preclude the Employer from seeking all other remedies that may be available to the Employer. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) <U>Section&nbsp;409A/Termination of Employment</U>. The provisions of this Agreement will be
administered, interpreted and construed in a manner intended to comply with Section&nbsp;409A of the Internal Revenue Code (&#147;Section 409A&#148;), the regulations issued thereunder or any exception thereto (or disregarded to the extent such
provision cannot be so administered, interpreted, or construed). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) For purposes of the Agreement, the Employee shall be considered to
have experienced a termination of employment only if the Employee has terminated employment with the Employer and all of its controlled group members within the meaning of Section&nbsp;409A of the Code. For purposes hereof, the determination of
controlled group members shall be made pursuant to the provisions of Section&nbsp;414(b) and 414(c) of the Code; provided that the language &#147;at least 50 percent&#148; shall be used instead of &#147;at least 80 percent&#148; in each place it
appears in Section&nbsp;1563(a)(1),(2) and (3)&nbsp;of the Code and Treas. Reg. &#167; 1.414(c)-2; provided, further, where legitimate business reasons exist (within the meaning of Treas. Reg. &#167; 1.409A-1(h)(3)), the language &#147;at least 20
percent&#148; shall be used instead of &#147;at least 80 percent&#148; in each place it appears. Whether the Employee has terminated employment will be determined based on all of the facts and circumstances and in accordance with the guidance issued
under Section&nbsp;409A of the Code. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%;padding-bottom:3px;line-height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">(2) For purposes of Section&nbsp;409A, each
severance benefit payment shall be treated as a separate payment. Each payment under this Agreement is intended to be excepted from Section&nbsp;409A to the maximum extent provided under Section&nbsp;409A as follows: (i)&nbsp;each payment that is
scheduled to be made following the Employee&#146;s termination date and within the applicable 2<FONT SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">2</FONT><FONT FACE="Times New Roman" SIZE="2"> month period specified in
Treas. Reg. &#167; 1.409A-1(b)(4) is intended to be excepted under the short-term deferral exception as specified in Treas. Reg. &#167; 1.409A-1(b)(4); (ii)&nbsp;post-termination medical benefits are intended to be excepted under the medical
benefits exception as specified in Treas. Reg. &#167; 1.409A-1(b)(9)(v)(B), and (iii)&nbsp;each payment that is not otherwise excepted under the short-term deferral exception or medical benefits exception is intended to be excepted under the
involuntary pay exception as specified in Treas. Reg. &#167; 1.409A-1(b)(9)(iii). The Employee shall have no right to designate the date of any payment under this Agreement. </FONT></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(3) With respect to payments subject to Section&nbsp;409A of the Code (and not excepted therefrom), if any, it is intended that each payment is paid on
permissible distribution event and at a specified time consistent with Section&nbsp;409A of the Code. Notwithstanding any provision of this Agreement to the contrary, to the extent that a payment hereunder is subject to Section&nbsp;409A of the Code
(and not excepted therefrom) and payable on account or a termination of employment, such payment shall be delayed for a period of six months after the date of termination (or, if earlier, the death of the Employee) if the Employee is a
&#147;specified employee&#148; (as defined in Section&nbsp;409A of the Code and determined in accordance with the procedures established by the Employer). Any payment that would otherwise have been due or owing during such six-month period will be
paid immediately following the end of the six-month period in the month following the month containing the six (6)&nbsp;month anniversary of the date of termination. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) <U>Definitions</U>. For purposes of this Agreement, the following definitions shall have the
following meanings: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(1) &#147;<U>Cause</U>&#148; shall mean a determination by the Employer&#146;s Board of Directors, in
the exercise of its reasonable judgment, that any of the following has occurred: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the willful and continued failure by the Employee to perform his duties and responsibilities with the Employer under the Agreement (other than any such failure resulting from
incapacity due to physical or mental illness or disability) which is not cured within thirty (30)&nbsp;days of receiving written notice from the Employer specifying in reasonable detail the duties and responsibilities which the Employer believes are
not being adequately performed; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the willful engaging by the Employee in any act which is materially damaging to the Employer; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the conviction of the Employee of, or a plea of &#147;guilty&#148; or &#147;no contest&#148; to, (A)&nbsp;any felony or (B)&nbsp;a criminal offense involving fraud, dishonesty or
other moral turpitude; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">any material breach by the Employee of the terms of the Agreement or any other written agreement between the Employee and the Employer relating to proprietary information,
confidentiality, non-competition or non-solicitation; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(v)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the engaging by the Employee in any intentional act of dishonesty resulting or intended to result, directly or indirectly, in personal gain to the Employee at the Employer&#146;s
expense. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(2) &#147;<U>Change in Control</U>&#148; shall be deemed to have occurred when: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the Employer is merged or consolidated with another entity the result of which is that immediately following such transaction (A)&nbsp;the persons who were the shareholders of the
Employer immediately prior to such transaction have less than a majority of the voting power of the Employer or the entity owing or controlling the Employer or (B)&nbsp;the individuals who comprised the Board of Directors of the Employer immediately
prior to such transaction cease to be at least a majority of the members of the Board of Directors of the Employer or of the entity controlling the Employer, or </FONT></TD></TR></TABLE>

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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a majority of the Employer&#146;s assets are sold or otherwise transferred to another corporation not controlled by or under common control with the Employer or to a partnership,
firm, entity or one or more individuals not so controlled, or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a majority of the members of the Employer&#146;s Board of Directors consists of persons who were not nominated for election as directors by or on behalf of the Employer&#146;s Board
of Directors or with the express concurrence of the Employer&#146;s Board of Directors, or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a single person, or a group of persons acting in concert, obtains voting control over a majority of the Employer&#146;s outstanding voting shares; provided, however, that a Change
in Control shall not have occurred as of result of any transaction in which Carl J. Johnson, and/or his affiliates, including the II-VI Incorporated Foundation, directly or indirectly, acquire more than a majority of the assets or stock of the
Employer or of the entity controlling the Employer. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(3) &#147;<U>Good Reason</U>&#148; means, without the
Employee&#146;s express written consent: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction of Employee&#146;s employment responsibilities; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction by the Employer of the Employee&#146;s eligibility for Total Target Compensation as in effect immediately prior to such reduction. &#147;<U>Total Target
Compensation</U>&#148; shall mean the Employee&#146;s Annual Base Salary plus the cash and stock compensation the Employee is eligible to receive at 100% performance, whether sales incentive, bonus or otherwise; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material increase in the amount of Employee&#146;s business travel which produces a constructive relocation of Employee; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction by the Employer in the kind or level of employee benefits to which the Employee is entitled immediately prior to such reduction with the result that the
Employee&#146;s overall benefits package is significantly reduced; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(v)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the relocation of the Employee to a facility or a location more than fifty (50)&nbsp;miles from Saxonburg, Pennsylvania. </FONT></TD></TR></TABLE>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">In order for the Employee to terminate for Good Reason, (A)&nbsp;the Employer must be
notified by the Employee in writing within ninety (90)&nbsp;days of the event constituting Good Reason, (B)&nbsp;the event must remain uncorrected by the Employer for thirty (30)&nbsp;days following such notice (the &#147;Notice Period&#148;), and
(C)&nbsp;such termination must occur within sixty (60)&nbsp;days after the expiration of the Notice Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11. Employee agrees, upon the
termination of his employment with Employer for any reason whatsoever, to return to an officer of Employer all equipment, records, copies of records, papers and other work product pertaining to any work performed by Employee while employed by the
Employer and in the event Employee shall fail to comply with the provisions of this paragraph, or in the event Employee shall violate this Agreement, Employee shall forfeit all claims to unpaid compensation without affecting the right of Employer to
compel the return of said records and papers. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">12. In the event that, and if for any reason, any portion of this Agreement shall be held to
be invalid or unenforceable, it is agreed that the remaining covenants and restrictions or portions thereof shall remain in full force and effect, and that if the validity or unenforceability is due to the unreasonableness of the time or
geographical area covered by said covenants and restrictions, said covenants and restrictions of this Agreement shall nevertheless be effective for such period of time and for such area as may be determined to be reasonable by a Court of appropriate
and competent jurisdiction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">13. Both parties agree not to make any disparaging statements that reflect negatively on the reputation or
good name of the other. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">14. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto
with respect to the employment of the Employee by the Employer and contains all of the covenants and agreements between the parties with respect to such employment in any manner whatsoever. No alterations, amendments, changes or additions to this
Agreement will be binding upon either Employer or Employee unless in writing and signed by both parties. No waiver of any right arising under this Agreement made by either party will be valid unless set forth in writing signed by both parties.
Notwithstanding the foregoing or any provision of this Agreement to the contrary, the Employer and the Employee agree to modify, amend or terminate any or all of the provisions of this Agreement or take any other action, to the extent necessary or
advisable to conform the provisions of this Agreement or the benefits provided thereunder with Section&nbsp;409A of the Code, the regulations issued thereunder or an exception thereto. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">15. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">16. This Agreement is binding upon the parties hereto and their respective heirs, personal representatives, successors and assigns. Employee agrees that
the obligations of Sections 4, 5, 6, 7, 8, 9, 11, 12 and 13 of this Agreement will survive the termination of this Agreement. </FONT></P>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">17. Employer may assign its rights under this Agreement to an affiliate, subsidiary, or parent of
Employer or to any corporation acquiring all or substantially all of the assets of Employer or to any other corporation into which Employer may be liquidated, merged, or consolidated. The terms of this Agreement will survive such assignment. In the
event of an assignment by Employer of this Agreement, the assignee or successor party shall have the same rights and obligations under this Agreement as Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF</B>, the parties hereto intending to be legally bound have set their hands and seals the day and year first above written. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="47%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="46%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ATTEST:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Craig A. Creaturo</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Francis J. Kramer</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Craig Creaturo, Treasurer</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Francis J. Kramer, President</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">WITNESS:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD COLSPAN="3" VALIGN="bottom"></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michelle L. Freehling</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Vincent D. Mattera, Jr.</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Michelle L. Freehling</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">Vincent D. Mattera, Jr.</FONT></TD></TR>
</TABLE>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>dex103.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Employment Agreement</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B><U>Exhibit 10.3 </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>II-VI </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Incorporated </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">II-VI INCORPORATED, 375 Saxonburg Boulevard, Saxonburg, PA 16056 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">General Offices:
724-352-4455&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales: 724-352-1504&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAX: 724-352-4980&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telex: 469864 </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>EMPLOYMENT AGREEMENT </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">THIS AGREEMENT
(&#147;Agreement&#148;) made and entered into this 19th day of September, 2008. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">BY AND BETWEEN </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED, a Pennsylvania corporation, having a principal place of business at 375 Saxonburg Boulevard, Saxonburg, Butler County, Pennsylvania
16056, hereinafter referred to as &#147;Employer&#148;, </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">AND </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">CRAIG A. CREATURO, of 105 Windmill Road, Butler, Pennsylvania 16002, hereinafter referred to as the &#147;Employee&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">WHEREAS, Employer currently employs the Employee as its Chief Financial Officer and Treasurer; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS,
the Employee is employed in a position of confidentiality, trust and importance with the Employer, and has information, knowledge and experience with the Employer which would be hard to replace and which would also place the Employer at a
competitive disadvantage should Employee accept employment with or otherwise assist a competitor; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Employer has determined
to provide the Employee with certain additional benefits as hereinafter defined. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in consideration of the mutual covenants
herein contained and intending to be legally bound hereby, the parties hereto agree to the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. Employer shall continue to employ
the Employee as Chief Financial Officer and Treasurer to perform such duties as may be determined and assigned to him by the President of Employer. This Agreement shall be effective as of June&nbsp;30, 2008 and shall remain in effect until
terminated in accordance with Section&nbsp;10. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. In consideration of the services to be performed by the Employee, the Employer agrees to pay the
Employee a salary of $205,000.00 per annum in equal installments at the regularly scheduled pay dates of the Employer together with such cash bonuses as the Employer shall determine from time to time in Employer&#146;s discretion. Employer also
agrees to provide the Employee with fringe benefits and all other benefits from time to time provided to similarly situated executive employees including, without limitation participation in Employer&#146;s omnibus incentive plan and other bonus
plans. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. Employee covenants and agrees to devote all of his business time and efforts to the faithful performance of the duties assigned
to him from time to time by the Employer, except to the extent that outside time and effort is approved by the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. The Employee,
during the term of his employment, has and will continue to have access to and become familiar with various trade or business secrets, including but not limited to drawings, processes, technical information and data, scientific data, business
methods, forms and contracts, as well as compilations of information, records and specifications, customer lists and marketing and sales data, which are owned by Employer or its customers (&#147;Information&#148;). During the term of this Agreement
and at all times after termination of this Agreement, unless authorized in writing by Employer, Employee will not use the Information for Employee&#146;s or any third party&#146;s benefit or advantage or disclose the Information or cause it to be
disclosed, or permit disclosure of it to any third party, or use the Information in any way which would be detrimental to the Employer. Employee will not be liable to the Employer for the disclosure of Information: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) which was known to the Employee on a non-confidential basis prior to the Employee&#146;s employment with Employer and Employee&#146;s prior knowledge
is established by written documents in Employee&#146;s files which predate the execution of this Agreement; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) which is received
rightfully by Employee on a non-confidential basis; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) which is subject to any disclosure laws; or </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) which is or becomes within the public domain through no act of the Employee. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">In any judicial proceeding, it will be presumed that the Information constitutes protectable trade secrets and Employee will bear the burden of proving
that any Information is publicly or rightfully known by Employee. All Information and equipment relating to the business of Employer shall not be removed from the premises of Employer under any circumstances whatsoever without the prior written
consent of Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. Any and all developments, discoveries, inventions, enhancements, modifications and improvements,
(&#147;Inventions&#148;) created or developed by Employee alone or with others during the term of his or her employment, whether or not during working hours and whether on the Employer&#146;s premises or elsewhere, will be the sole and exclusive
property of Employer if the Invention is: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) within the scope of Employee&#146;s duties assigned or implied in accordance with his or her
position; or </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) a product, service, or other item which would be in competition with the products or services offered
by Employer or which is related to Employer&#146;s products or services, whether presently existing, under development, or under active consideration; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(c) in whole or in part, the result of Employee&#146;s use of Employer&#146;s resources, including without limitation personnel, computers, equipment, facilities or otherwise. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Employee will disclose promptly to Employer any and all Inventions and will reduce such disclosure to a detailed writing upon request by Employer. During
the term of Employee&#146;s employment with Employer and after termination of such employment, if Employer should then so request, Employee agrees to assign and does hereby assign to Employer all rights in the Inventions. Employee agrees to execute
and deliver to Employer any instruments Employer deems necessary to vest in Employer the sole title to and all exclusive rights in the Inventions. Employee agrees to execute and deliver to Employer all proper papers for use in applying for,
obtaining, maintaining, amending and enforcing any legal protections as the Employer may desire. Employee further agrees to assist fully the Employer or its nominees in the preparation and prosecution of any litigation connected with the Inventions.
Employee&#146;s obligations and covenants in this Section will be binding upon Employee&#146;s heirs, legal representatives, successors and assigns. Employee represents that he is not the owner of any patents. Any patent, patent pending, copyright,
trademark, trade name, invention, writing, drawing and the like which has been previously made by or conceived by Employee or which occurred under his management in connection with his prior employment is believed to be the property of the prior
employer and/or its assigns and is not owned by Employee. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. The Employee covenants and agrees that at no time during the term of his
employment hereunder, or for a period of one (1)&nbsp;year immediately following the termination of his employment for any reason will he, for himself, or on behalf of any other person, persons, firm, partnership, corporation, or company, call upon
any customers of Employer for the purpose of soliciting, selling, or both, to any of said customers, any services or products that are the same or similar to those provided and/or produced by Employer; nor will Employee, in any way directly or
indirectly, for himself or on behalf of or in conjunction with any Competitor, solicit, divert, or take away any such customers of Employer during the term of his employment or for one (1)&nbsp;year immediately following the termination of this
Agreement. For purposes of this Agreement, &#147;Employer&#148; shall also include any corporations which are part of a controlled group of corporations which includes II-VI Incorporated. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. The Employee covenants and agrees that upon the termination of his employment for any reason the Employee will not enter into or engage generally in
direct or indirect competition with Employer within the Restricted Territory whether as an individual, or as a partner or joint venturer, or as an employee or agent for any Competitor, or as a five percent (5%)&nbsp;or more investor, officer,
director, shareholder or otherwise of a Competitor, for a period of one (1)&nbsp;year after the date of termination of his employment hereunder. For purposes of this Agreement, (i)&nbsp;a &#147;Competitor&#148; </FONT>
</P>

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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">shall mean any corporation, partnership, sole proprietorship or other entity who sells, manufactures, produces or modifies a product or products similar to,
the same as or a substitute for those sold, manufactured, produced or modified by Employer (&#147;Employer Products&#148;) and (ii)&nbsp;&#147;Restricted Territory&#148; means anywhere in the world where Employer&#146;s Products are marketed or
sold. This covenant on the part of the Employee shall be construed as an agreement independent of any other provision of this Agreement; and the existence of any claim or cause of action of the Employee against Employer, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of this covenant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>8. The Employee covenants
and agrees that at no time during the term of his employment or for a period of one (1)&nbsp;year immediately following the termination of his employment for any reason, will he, for himself, or on behalf of any other person, persons, firm,
partnership, corporation, or company hire any person who is employed by the Employer or has been employed by the Employer within one (1)&nbsp;year of such termination date.<B> </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. The employment relationship of the parties hereto may be terminated by either party upon thirty (30)&nbsp;days written notice to the other party at
any time, with or without cause. The Employer shall continue the payment of wages and benefits through such period although the parties hereto agree that the Employer may request the Employee to stop performing any duties on behalf of the Employer.
In any event, the Employee shall remain an employee of the Employer through the end of such thirty (30)&nbsp;day period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">10. (a)
<U>Termination Without Cause</U>. If, other than in connection with a change of control, the employment of the Employee is involuntarily terminated by Employer without Cause, the Employer agrees to pay the Employee severance pay in an amount equal
to nine (9)&nbsp;months of the monthly salary which the Employee is receiving at the time of termination. The severance pay will be paid to the Employee no later than sixty (60)&nbsp;days after the date of termination. The severance pay will not be
considered compensation for the purpose of any other fringe benefit program of the Employer. No bonus or any other fringe benefits will be due the Employee except for his accrued vacation. To the extent the Employee elects to continue health
insurance coverage under COBRA, the Company will pay the premiums for such coverage for a period of up to nine (9)&nbsp;months under the terms specified in Section&nbsp;10(b)(1) below. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <U>Termination after Change in Control</U>. If the Employer terminates the Employee&#146;s employment without Cause or the Employee terminates the
Employee&#146;s employment for Good Reason, and such termination is coincident with or within an eighteen (18)&nbsp;month period following the occurrence of a Change in Control, the Employer shall pay Employee severance pay in an amount equal to
2.99 multiplied by the Employee&#146;s Average Annual Income. For purposes of this subparagraph &#147;Average Annual Income&#148; shall be calculated as the sum of the Employee&#146;s Annual Base Pay and Annual Cash Bonus for the preceding five
(5)&nbsp;fiscal years of the Employer divided by five (5). The severance pay will be paid to the Employee within the period specified in Section&nbsp;10(b)(3) below after the expiration of any applicable revocation periods set forth in the Release.
This severance payment will not be considered compensation for the purpose of any other fringe benefit plan of the Employer. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) To the extent permitted by applicable law and the Employer&#146;s benefit plans, the Employer shall
maintain the Employee&#146;s paid coverage for health insurance through the payment of the Employee&#146;s COBRA premiums until the earlier to occur of: (a)&nbsp;the date the Employee is provided by another employer benefits substantially comparable
to the health insurance benefits provided by the Employer (which the Employee must provide prompt notice with respect thereto to the Employer), or (b)&nbsp;the expiration of the COBRA Continuation Period. During the applicable period of coverage
described in the foregoing sentence, the Employee shall be entitled to benefits on substantially the same basis as would have otherwise been provided had the Employee not been terminated and the Employer will have no obligation to pay any benefits
to or premiums on behalf of the Employee after such period ends. To the extent that such benefits are available under the Employer&#146;s benefit plans and the Employee had such coverage immediately prior to termination of employment, such
continuation of benefits for the Employee shall also cover the Employee&#146;s dependents for so long as the Employee is receiving such benefits under this Section&nbsp;10(b)(1). The COBRA Continuation Period for health insurance under this
Section&nbsp;10(b)(1) shall be deemed to run concurrent with the continuation period federally mandated by COBRA (generally 18 months), or any other legally mandated and applicable federal, state, or local coverage period for benefits provided to
terminated employees under the health care plan(s). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(2) A lump sum cash payment of Twenty Thousand ($20,000.00) Dollars in order to cover
the cost of post-termination benefit coverage and expenses associated with seeking another employment position. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(3) All payments to be
made pursuant to this Section&nbsp;10(b) shall be made, in lump sum, no later than sixty (60)&nbsp;days after the date of termination; provided, however, that all benefits due under Section&nbsp;10(b)(1) shall be provided as specified thereunder.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <U>Reduction of Severance Payments</U>. Notwithstanding anything to the contrary contained in Section&nbsp;10(b) above, in the event
the Employer determines that part or all of the consideration, compensation or benefits to be paid to the Employee under this Agreement constitute &#147;parachute payments&#148; under Section&nbsp;280G(b)(2) of the Internal Revenue Code of 1986, as
amended (the &#147;IRC&#148;), then, if the aggregate present value of such parachute payments, together with the aggregate present value of any consideration, compensation or benefits to be paid to the Employee under any other plan, arrangement or
agreement which constitute &#147;parachute payments&#148; (collectively, the &#147;Parachute Amount&#148;) exceeds 2.99 times the Employee&#146;s &#147;base amount&#148;, as defined in Section&nbsp;280G(b)(3) of the IRC (the &#147;Employee&#146;s
Base Amount&#148;), the amounts payable hereunder constituting &#147;parachute payments&#148; which would otherwise be payable to or for the benefit of the Employee shall be reduced to the extent necessary so that the Parachute Amount is equal to
2.99 times the Employee&#146;s Base Amount. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) <U>Conditions to Receipt of Severance Benefits/Repayment of Severance Benefits</U>.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) As a condition to receiving any severance benefits to which the Employee may otherwise be entitled under Sections 10(a) and 10(b) of
this Agreement (the </FONT>
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<FONT FACE="Times New Roman" SIZE="2">&#147;Severance Benefits&#148;), the Employee shall execute, deliver and not revoke a release and waiver (the &#147;Release&#148;), in a form provided by the
Employee, of any claims, whether arising under Federal, state or local statute, common law or otherwise, against the Employer and its subsidiaries. Unless otherwise required by applicable law, the release must be executed by the Employee within
thirty (300)&nbsp;days of the date of termination. If the Employee fails or otherwise refuses to execute a Release within the time specified herein, or revokes the Release, the Employee will not be entitled to any such Severance Benefits and the
Employer shall have no further obligations with respect to the payment of the Severance Benefits. In addition, if following a termination of employment that gives the Employee a right to the payment of Severance Benefits, the Employee engages in any
activities that would have violated any of the covenants in Sections 4, 5, 6, 7, and 8 of this Agreement, the Employee shall have no further right or claim to any Severance Benefits from and after the date on which the Employee engages in such
activities and the Employer shall have no further obligations with respect to the payment of the Severance Benefits. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(2) If Employee
violates any of the Employee&#146;s obligations set forth in Sections&nbsp;4, 5, 6, 7 and 8 of this Agreement, the Employer after becoming aware of such violation may provide written notice of such violation or breach to the Employee and request
repayment of Severance Benefits. The Employee agrees that, in the event of a such a violation, within ten (10)&nbsp;days after the date the Employer provides notice to the Employee, the Employee shall pay to the Employer, in a form acceptable to the
Employer, a dollar amount equal to any Severance Benefits paid to or on behalf of the Employee pursuant to this Agreement. The Employee agrees that failure to make such timely payment to the Employer constitutes an independent and material breach of
the terms and conditions of this Agreement, for which the Employer may seek recovery of the unpaid amount as liquidated damages, in addition to all other rights and remedies the Employer may have resulting from the Employee&#146;s breach of the
obligations set forth in Sections&nbsp;4, 5, 6, 7, and 8 of this Agreement. The Employee agrees that timely payment to the Employer as set forth in this Section&nbsp;10(d)(2) is reasonable and necessary because the compensatory damages that will
result from breaches of Sections&nbsp;4, 5, 6, 7 and 8 of this Agreement cannot readily be ascertained. Further, the Employee agrees that timely payment to the Employer as set forth in this Section&nbsp;10(d)(2) is not a penalty, and it does not
preclude the Employer from seeking all other remedies including injunctive relief that may be available to the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e)
<U>Section&nbsp;409A/Termination of Employment</U>. The provisions of this Agreement will be administered, interpreted and construed in a manner intended to comply with Section&nbsp;409A of the Internal Revenue Code (&#147;Section 409A&#148;), the
regulations issued thereunder or any exception thereto (or disregarded to the extent such provision cannot be so administered, interpreted, or construed). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
FACE="Times New Roman" SIZE="2">(1) For purposes of the Agreement, the Employee shall be considered to have experienced a termination of employment only if the Employee has terminated employment with the Employer and all of its controlled group
members within the meaning of Section&nbsp;409A of the Code. For purposes hereof, the determination of controlled group members shall be made pursuant to the provisions of Section&nbsp;414(b) and 414(c) of the Code; provided that </FONT>
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<FONT FACE="Times New Roman" SIZE="2">the language &#147;at least 50 percent&#148; shall be used instead of &#147;at least 80 percent&#148; in each place it appears in Section&nbsp;1563(a)(1),(2)
and (3)&nbsp;of the Code and Treas. Reg. &#167; 1.414(c)-2; provided, further, where legitimate business reasons exist (within the meaning of Treas. Reg. &#167; 1.409A-1(h)(3)), the language &#147;at least 20 percent&#148; shall be used instead of
&#147;at least 80 percent&#148; in each place it appears. Whether the Employee has terminated employment will be determined based on all of the facts and circumstances and in accordance with the guidance issued under Section&nbsp;409A of the Code.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%;padding-bottom:3px;line-height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">(2) For purposes of Section&nbsp;409A, each severance benefit payment shall be
treated as a separate payment. Each payment under this Agreement is intended to be excepted from Section&nbsp;409A to the maximum extent provided under Section&nbsp;409A as follows: (i)&nbsp;each payment that is scheduled to be made following the
Employee&#146;s termination date and within the applicable 2<FONT SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">2</FONT><FONT FACE="Times New Roman" SIZE="2"> month period specified in Treas. Reg. &#167; 1.409A-1(b)(4) is
intended to be excepted under the short-term deferral exception as specified in Treas. Reg. &#167; 1.409A-1(b)(4); (ii)&nbsp;post-termination medical benefits are intended to be excepted under the medical benefits exception as specified in Treas.
Reg. &#167; 1.409A-1(b)(9)(v)(B), and (iii)&nbsp;each payment that is not otherwise excepted under the short-term deferral exception or medical benefits exception is intended to be excepted under the involuntary pay exception as specified in Treas.
Reg. &#167; 1.409A-1(b)(9)(iii). The Employee shall have no right to designate the date of any payment under this Agreement. </FONT></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(3)
With respect to payments subject to Section&nbsp;409A of the Code (and not excepted therefrom), if any, it is intended that each payment is paid on permissible distribution event and at a specified time consistent with Section&nbsp;409A of the Code.
The Employer reserves the right to accelerate and/or defer any payment to the extent permitted and consistent with Section&nbsp;409A.&nbsp;Notwithstanding any provision of this Agreement to the contrary, to the extent that a payment hereunder is
subject to Section&nbsp;409A of the Code (and not excepted therefrom) and payable on account or a termination of employment, such payment shall be delayed for a period of six months after the date of termination (or, if earlier, the death of the
Employee) if the Employee is a &#147;specified employee&#148; (as defined in Section&nbsp;409A of the Code and determined in accordance with the procedures established by the Employer). Any payment that would otherwise have been due or owing during
such six-month period will be paid immediately following the end of the six-month period in the month following the month containing the six (6)&nbsp;month anniversary of the date of termination. Notwithstanding any provision of this Agreement to
the contrary, to the extent the timing of any severance benefit payment due under this Agreement was modified pursuant to the transition guidance provided by the IRS concerning the time and form of payment, any such modification shall only apply to
amounts that would not otherwise be payable in 2008 and may not cause an amount to be paid in 2008 that would not otherwise be paid in 2008. To the extent any such payment can not be made in 2008 under the transition guidance, such payment will be
made in January 2009. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) <U>Definitions</U>. For purposes of this Agreement, the following definitions shall have the following meanings:
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) &#147;<U>Cause</U>&#148; shall mean a determination by the Employer&#146;s Board of Directors, in the exercise of its reasonable
judgment, that any of the following has occurred: </FONT></P>

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<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the willful and continued failure by the Employee to perform his duties and responsibilities with the Employer under the Agreement (other than any such failure resulting from
incapacity due to physical or mental illness or disability) which is not cured within thirty (30)&nbsp;days of receiving written notice from the Employer specifying in reasonable detail the duties and responsibilities which the Employer believes are
not being adequately performed; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the willful engaging by the Employee in any act which is materially damaging to the Employer; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the conviction of the Employee of, or a plea of &#147;guilty&#148; or &#147;no contest&#148; to, (A)&nbsp;any felony or (B)&nbsp;a criminal offense involving fraud, dishonesty or
other moral turpitude; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">any material breach by the Employee of the terms of the Agreement or any other written agreement between the Employee and the Employer relating to proprietary information,
confidentiality, non-competition or non-solicitation; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(v)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the engaging by the Employee in any intentional act of dishonesty resulting or intended to result, directly or indirectly, in personal gain to the Employee at the Employer&#146;s
expense. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(2) &#147;<U>Change in Control</U>&#148; shall be deemed to have occurred when: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the Employer is merged or consolidated with another entity the result of which is that immediately following such transaction (A)&nbsp;the persons who were the shareholders of the
Employer immediately prior to such transaction have less than a majority of the voting power of the Employer or the entity owing or controlling the Employer or (B)&nbsp;the individuals who comprised the Board of Directors of the Employer immediately
prior to such transaction cease to be at least a majority of the members of the Board of Directors of the Employer or of the entity controlling the Employer, or </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a majority of the Employer&#146;s assets are sold or otherwise transferred to another corporation not controlled by or under common control with the Employer or to a partnership,
firm, entity or one or more individuals not so controlled, or </FONT></TD></TR></TABLE>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a majority of the members of the Employer&#146;s Board of Directors consists of persons who were not nominated for election as directors by or on behalf of the Employer&#146;s Board
of Directors or with the express concurrence of the Employer&#146;s Board of Directors, or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a single person, or a group of persons acting in concert, obtains voting control over a majority of the Employer&#146;s outstanding voting shares; provided, however, that a Change
in Control shall not have occurred as of result of any transaction in which Carl J. Johnson, and/or his affiliates, including the II-VI Incorporated Foundation, directly or indirectly, acquire more than a majority of the assets or stock of the
Employer or of the entity controlling the Employer. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(3) &#147;<U>Good Reason</U>&#148; means, without the Employee&#146;s
express written consent: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction of Employee&#146;s employment responsibilities; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction by the Employer of the Employee&#146;s eligibility for Total Target Compensation as in effect immediately prior to such reduction. &#147;<U>Total Target
Compensation</U>&#148; shall mean the Employee&#146;s annual base salary plus the cash and stock compensation the Employee is eligible to receive at 100% performance, whether sales incentive, bonus or otherwise; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material increase in the amount of Employee&#146;s business travel which produces a constructive relocation of Employee; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction by the Employer in the kind or level of employee benefits to which the Employee is entitled immediately prior to such reduction with the result that the
Employee&#146;s overall benefits package is significantly reduced; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(v)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the relocation of the Employee to a facility or a location more than fifty (50)&nbsp;miles from Saxonburg, Pennsylvania. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">In order for the Employee to terminate for Good Reason, (A)&nbsp;the Employer must be notified by the Employee in writing within ninety (90)&nbsp;days
of the event constituting Good Reason, (B)&nbsp;the event must remain uncorrected by the Employer for thirty (30)&nbsp;days following such notice (the &#147;Notice Period&#148;), and (C)&nbsp;such termination must occur within sixty (60)&nbsp;days
after the expiration of the Notice Period. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11. Employee agrees, upon the termination of his employment with Employer for any reason whatsoever, to
return to an officer of Employer all equipment, records, copies of records, papers and other work product pertaining to any work performed by Employee while associated with Employer. The Employee shall also provide the Employer, if requested to do
so, the name of the new employer of Employee. In the event Employee shall fail to comply with the provisions of this paragraph, or in the event Employee shall violate this Agreement, Employee shall forfeit all claims to unpaid compensation without
affecting the right of Employer to compel the return of said records and papers. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">12. In the event that, and if for any reason, any portion
of this Agreement shall be held to be invalid or unenforceable, it is agreed that the remaining covenants and restrictions or portions thereof shall remain in full force and effect, and that if the validity or unenforceability is due to the
unreasonableness of the time or geographical area covered by said covenants and restrictions, said covenants and restrictions of this Agreement shall nevertheless be effective for such period of time and for such area as may be determined to be
reasonable by a Court of competent jurisdiction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">13. Both parties agree not to make any disparaging statements that reflect negatively on
the reputation or good name of the other. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">14. This Agreement supersedes any and all other agreements, either oral or in writing, between
the parties hereto with respect to the employment of the Employee by the Employer and contains all of the covenants and agreements between the parties with respect to such employment in any manner whatsoever. No alterations, amendments, changes or
additions to this Agreement will be binding upon either Employer or Employee unless in writing and signed by both parties. No waiver of any right arising under this Agreement made by either party will be valid unless set forth in writing signed by
both parties. Notwithstanding the foregoing or any provision of this Agreement to the contrary, the Employer may at any time (after consultation with the Employee) modify, amend or terminate any or all of the provisions of this Agreement or take any
other action, to the extent necessary or advisable to conform the provisions of this Agreement or the benefits provided thereunder with Section&nbsp;409A of the Code, the regulations issued thereunder or an exception thereto. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">15. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">16. This Agreement is binding upon the parties hereto and their respective heirs, personal representatives, successors and assigns. Employee agrees that
the obligations of Sections 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16 and 1417 of this Agreement will survive the termination of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">17. Employer may assign its rights under this Agreement to an affiliate, subsidiary, or parent of Employer or to any corporation acquiring all or substantially all of the assets of Employer or to any other corporation into which Employer
may be liquidated, merged, or consolidated. The terms of this Agreement will survive such assignment unless termination of the Agreement is provided prior to such assignment. In the event of an assignment by Employer of this Agreement, the assignee
or successor party shall have the same rights and obligations under this Agreement as Employer. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF</B>, the parties hereto intending to be legally bound have set their hands and
seals the day and year first above written. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ATTEST:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
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<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Craig A. Creaturo</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Francis J. Kramer</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Craig Creaturo, Treasurer</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Francis J. Kramer, President</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">WITNESS:</FONT></TD>
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<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">EMPLOYEE:</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michelle L. Freehling</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Craig A. Creaturo</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Michelle L. Freehling</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">Craig A. Creaturo</FONT></TD></TR>
</TABLE>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>dex104.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Employment Agreement</TITLE>
</HEAD>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B><U>Exhibit 10.4 </U></B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>II-VI </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Incorporated </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">II-VI INCORPORATED, 375 Saxonburg Boulevard, Saxonburg, PA 16056 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">General Offices:
724-352-4455&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales: 724-352-1504&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAX: 724-352-4980&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telex: 469864 </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>EMPLOYMENT AGREEMENT </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">THIS AGREEMENT
(&#147;Agreement&#148;) made and entered into this 19th day of September, 2008. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">BY AND BETWEEN </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED, a Pennsylvania corporation, having a principal place of business at 375 Saxonburg Boulevard, Saxonburg, Butler County, Pennsylvania
16056, hereinafter referred to as &#147;Employer&#148;, </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">AND </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">JAMES MARTINELLI, of 1832 Liberty Way, Valencia, Pennsylvania 16059, hereinafter referred to as the &#147;Employee&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">WHEREAS, Employer currently employs the Employee as its Vice-President - Military and Materials Businesses; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">WHEREAS, the Employee is employed in a position of confidentiality, trust and importance with the Employer, and has information, knowledge and experience with the Employer which would be hard to replace and which would also place the
Employer at a competitive disadvantage should Employee accept employment with or otherwise assist a competitor; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Employer
has determined to provide the Employee with certain additional benefits as hereinafter defined. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in consideration of the
mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree to the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. Employer shall
continue to employ the Employee as Vice-President - Military and Materials Businesses to perform such duties as may be determined and assigned to him by the President of Employer. This Agreement shall be effective as of June&nbsp;30, 2008 and shall
remain in effect until terminated in accordance with Section&nbsp;9. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. In consideration of the services to be performed by the Employee,
the Employer agrees to pay the Employee a salary of $188,000.00 per annum in equal installments at the regularly </FONT>
</P>

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<FONT FACE="Times New Roman" SIZE="2">scheduled pay dates of the Employer together with such cash bonuses as the Employer shall determine from time to time in Employer&#146;s discretion. Employer
also agrees to provide the Employee with fringe benefits and all other benefits from time to time provided to similarly situated executive employees including, without limitation participation in Employer&#146;s omnibus incentive plan and other
bonus plans. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. Employee covenants and agrees to devote all of his business time and efforts to the faithful performance of the duties
assigned to him from time to time by the Employer, except to the extent that outside time and effort is approved by the Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. The
Employee, during the term of his employment, has and will continue to have access to and become familiar with various trade or business secrets, including but not limited to drawings, processes, technical information and data, scientific data,
business methods, forms and contracts, as well as compilations of information, records and specifications, customer lists and marketing and sales data, which are owned by Employer or its customers (&#147;Information&#148;). During the term of this
Agreement and at all times after termination of this Agreement, unless authorized in writing by Employer, Employee will not use the Information for Employee&#146;s or any third party&#146;s benefit or advantage or disclose the Information or cause
it to be disclosed, or permit disclosure of it to any third party, or use the Information in any way which would be detrimental to the Employer. Employee will not be liable to the Employer for the disclosure of Information: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) which was known to the Employee on a non-confidential basis prior to the Employee&#146;s employment with Employer and Employee&#146;s prior knowledge
is established by written documents in Employee&#146;s files which predate the execution of this Agreement; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) which is received
rightfully by Employee on a non-confidential basis; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) which is subject to any disclosure laws; or </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) which is or becomes within the public domain through no act of the Employee. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">In any judicial proceeding, it will be presumed that the Information constitutes protectable trade secrets and Employee will bear the burden of proving
that any Information is publicly or rightfully known by Employee. All Information and equipment relating to the business of Employer shall not be removed from the premises of Employer under any circumstances whatsoever without the prior written
consent of Employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. Any and all developments, discoveries, inventions, enhancements, modifications and improvements,
(&#147;Inventions&#148;) created or developed by Employee alone or with others during the term of his or her employment, whether or not during working hours and whether on the Employer&#146;s premises or elsewhere, will be the sole and exclusive
property of Employer if the Invention is: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) within the scope of Employee&#146;s duties assigned or implied in accordance with his or her
position; or </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) a product, service, or other item which would be in competition with the products or services offered
by Employer or which is related to Employer&#146;s products or services, whether presently existing, under development, or under active consideration; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(c) in whole or in part, the result of Employee&#146;s use of Employer&#146;s resources, including without limitation personnel, computers, equipment, facilities or otherwise. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Employee will disclose promptly to Employer any and all Inventions and will reduce such disclosure to a detailed writing upon request by Employer. During
the term of Employee&#146;s employment with Employer and after termination of such employment, if Employer should then so request, Employee agrees to assign and does hereby assign to Employer all rights in the Inventions. Employee agrees to execute
and deliver to Employer any instruments Employer deems necessary to vest in Employer the sole title to and all exclusive rights in the Inventions. Employee agrees to execute and deliver to Employer all proper papers for use in applying for,
obtaining, maintaining, amending and enforcing any legal protections as the Employer may desire. Employee further agrees to assist fully the Employer or its nominees in the preparation and prosecution of any litigation connected with the Inventions.
Employee&#146;s obligations and covenants in this Section will be binding upon Employee&#146;s heirs, legal representatives, successors and assigns. Employee represents that he is not the owner of any patents. Any patent, patent pending, copyright,
trademark, trade name, invention, writing, drawing and the like which has been previously made by or conceived by Employee or which occurred under his management in connection with his prior employment is believed to be the property of the prior
employer and/or its assigns and is not owned by Employee. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. The Employee covenants and agrees that at no time during the term of his
employment hereunder, or for a period of one (1)&nbsp;year immediately following the termination of his employment for any reason will he, for himself, or on behalf of any other person, persons, firm, partnership, corporation, or company, call upon
any customers of Employer for the purpose of soliciting, selling, or both, to any of said customers, any services or products that are the same or similar to those provided and/or produced by Employer; nor will Employee, in any way directly or
indirectly, for himself or on behalf of or in conjunction with any Competitor, solicit, divert, or take away any such customers of Employer during the term of his employment or for one (1)&nbsp;year immediately following the termination of this
Agreement. For purposes of this Agreement, &#147;Employer&#148; shall also include any corporations which are part of a controlled group of corporations which includes II-VI Incorporated. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. The Employee covenants and agrees that upon the termination of his employment for any reason the Employee will not enter into or engage generally in
direct or indirect competition with Employer within the Restricted Territory whether as an individual, or as a partner or joint venturer, or as an employee or agent for any Competitor, or as a five percent (5%)&nbsp;or more investor, officer,
director, shareholder or otherwise of a Competitor, for a period of one (1)&nbsp;year after the date of termination of his employment hereunder. For purposes of this Agreement, (i)&nbsp;a &#147;Competitor&#148; shall mean any corporation,
partnership, sole proprietorship or other entity who sells, manufactures, produces or modifies a product or products similar to, the same as or a substitute for those sold, </FONT>
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<FONT FACE="Times New Roman" SIZE="2">manufactured, produced or modified by Employer (&#147;Employer Products&#148;) and (ii)&nbsp;&#147;Restricted Territory&#148; means anywhere in the world
where Employer&#146;s Products are marketed or sold. This covenant on the part of the Employee shall be construed as an agreement independent of any other provision of this Agreement; and the existence of any claim or cause of action of the Employee
against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of this covenant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B></B>8. The Employee covenants and agrees that at no time during the term of his employment or for a period of one (1)&nbsp;year immediately following the termination of his employment for any reason, will he, for
himself, or on behalf of any other person, persons, firm, partnership, corporation, or company hire any person who is employed by the Employer or has been employed by the Employer within one (1)&nbsp;year of such termination date.<B> </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. The employment relationship of the parties hereto may be terminated by either party upon thirty (30)&nbsp;days written notice to the other party at
any time, with or without cause. The Employer shall continue the payment of wages and benefits through such period although the parties hereto agree that the Employer may request the Employee to stop performing any duties on behalf of the Employer.
In any event, the Employee shall remain an employee of the Employer through the end of such thirty (30)&nbsp;day period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">10. (a)
<U>Termination Without Cause</U>. If, other than in connection with a change of control, the employment of the Employee is terminated by Employer without Cause, the Employer agrees to pay the Employee severance pay in an amount equal to nine
(9)&nbsp;months of the monthly salary which the Employee is receiving at the time of termination. The severance pay will be paid to the Employee no later than sixty (60)&nbsp;days after the date of termination. The severance pay will not be
considered compensation for the purpose of any other fringe benefit program of the Employer. No bonus or any other fringe benefits will be due the Employee except for his accrued vacation. To the extent the Employee elects to continue health
insurance coverage under COBRA, the Company will pay the premiums for such coverage for a period of up to nine (9)&nbsp;months under the terms specified in Section&nbsp;10(b)(1) below. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <U>Termination after Change in Control</U>. If the Employer terminates the Employee&#146;s employment without Cause or the Employee terminates the
Employee&#146;s employment for Good Reason, and such termination is coincident with or within an eighteen (18)&nbsp;month period following the occurrence of a Change in Control, the Employer shall pay Employee severance pay in an amount equal to
2.99 multiplied by the Employee&#146;s Average Annual Income. For purposes of this subparagraph &#147;Average Annual Income&#148; shall be calculated as the sum of the Employee&#146;s Annual Base Pay and Annual Cash Bonus for the preceding five
(5)&nbsp;fiscal years of the Employer divided by five (5). The severance pay will be paid to the Employee within the period specified in Section&nbsp;10(b)(3) below after the expiration of any applicable revocation periods set forth in the Release.
This severance payment will not be considered compensation for the purpose of any other fringe benefit plan of the Employer. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) To the
extent permitted by applicable law and the Employer&#146;s benefit plans, the Employer shall maintain the Employee&#146;s paid coverage for health insurance </FONT>
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<FONT FACE="Times New Roman" SIZE="2">through the payment of the Employee&#146;s COBRA premiums until the earlier to occur of: (a)&nbsp;the date the Employee is provided by another employer
benefits substantially comparable to the health insurance benefits provided by the Employer (which the Employee must provide prompt notice with respect thereto to the Employer), or (b)&nbsp;the expiration of the COBRA Continuation Period. During the
applicable period of coverage described in the foregoing sentence, the Employee shall be entitled to benefits on substantially the same basis as would have otherwise been provided had the Employee not been terminated and the Employer will have no
obligation to pay any benefits to or premiums on behalf of the Employee after such period ends. To the extent that such benefits are available under the Employer&#146;s benefit plans and the Employee had such coverage immediately prior to
termination of employment, such continuation of benefits for the Employee shall also cover the Employee&#146;s dependents for so long as the Employee is receiving such benefits under this Section&nbsp;10(b)(1). The COBRA Continuation Period for
health insurance under this Section&nbsp;10(b)(1) shall be deemed to run concurrent with the continuation period federally mandated by COBRA (generally 18 months), or any other legally mandated and applicable federal, state, or local coverage period
for benefits provided to terminated employees under the health care plan(s). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(2) A lump sum cash payment of Twenty Thousand ($20,000.00)
Dollars in order to cover the cost of post-termination benefit coverage and expenses associated with seeking another employment position. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman"
SIZE="2">(3) All payments to be made pursuant to this Section&nbsp;10(b) shall be made, in lump sum, no later than sixty (60)&nbsp;days after the date of termination; provided, however, that all benefits due under Section&nbsp;10(b)(1) shall be
provided as specified thereunder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <U>Reduction of Severance Payments</U>. Notwithstanding anything to the contrary contained in
Section&nbsp;10(b) above, in the event the Employer determines that part or all of the consideration, compensation or benefits to be paid to the Employee under this Agreement constitute &#147;parachute payments&#148; under Section&nbsp;280G(b)(2) of
the Internal Revenue Code of 1986, as amended (the &#147;IRC&#148;), then, if the aggregate present value of such parachute payments, together with the aggregate present value of any consideration, compensation or benefits to be paid to the Employee
under any other plan, arrangement or agreement which constitute &#147;parachute payments&#148; (collectively, the &#147;Parachute Amount&#148;) exceeds 2.99 times the Employee&#146;s &#147;base amount&#148;, as defined in Section&nbsp;280G(b)(3) of
the IRC (the &#147;Employee&#146;s Base Amount&#148;), the amounts payable hereunder constituting &#147;parachute payments&#148; which would otherwise be payable to or for the benefit of the Employee shall be reduced to the extent necessary so that
the Parachute Amount is equal to 2.99 times the Employee&#146;s Base Amount. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) <U>Conditions to Receipt of Severance Benefits/Repayment
of Severance Benefits</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) As a condition to receiving any severance benefits to which the Employee may otherwise be entitled under
Sections 10(a) and 10(b) of this Agreement (the &#147;Severance Benefits&#148;), the Employee shall execute, deliver and not revoke a release and waiver (the &#147;Release&#148;), in a form provided by the Employee, of any claims, whether arising
under </FONT>
</P>

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<FONT FACE="Times New Roman" SIZE="2">Federal, state or local statute, common law or otherwise, against the Employer and its subsidiaries. Unless otherwise required by applicable law, the release
must be executed by the Employee within thirty (30)&nbsp;days of the date of termination. If the Employee fails or otherwise refuses to execute a Release within the time specified herein, or revokes the Release, the Employee will not be entitled to
any such Severance Benefits and the Employer shall have no further obligations with respect to the payment of the Severance Benefits. In addition, if following a termination of employment that gives the Employee a right to the payment of Severance
Benefits, the Employee engages in any activities that would have violated any of the covenants in Sections 4, 5, 6, 7, and 8 of this Agreement, the Employee shall have no further right or claim to any Severance Benefits from and after the date on
which the Employee engages in such activities and the Employer shall have no further obligations with respect to the payment of the Severance Benefits. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
FACE="Times New Roman" SIZE="2">(2) If Employee violates any of the Employee&#146;s obligations set forth in Sections&nbsp;4, 5, 6, 7 and 8 of this Agreement, the Employer after becoming aware of such violation may provide written notice of such
violation or breach to the Employee and request repayment of Severance Benefits. The Employee agrees that, in the event of a such a violation, within ten (10)&nbsp;days after the date the Employer provides notice to the Employee, the Employee shall
pay to the Employer, in a form acceptable to the Employer, a dollar amount equal to any Severance Benefits paid to or on behalf of the Employee pursuant to this Agreement. The Employee agrees that failure to make such timely payment to the Employer
constitutes an independent and material breach of the terms and conditions of this Agreement, for which the Employer may seek recovery of the unpaid amount as liquidated damages, in addition to all other rights and remedies the Employer may have
resulting from the Employee&#146;s breach of the obligations set forth in Sections&nbsp;4, 5, 6, 7, and 8 of this Agreement. The Employee agrees that timely payment to the Employer as set forth in this Section&nbsp;10(d)(2) is reasonable and
necessary because the compensatory damages that will result from breaches of Sections&nbsp;4, 5, 6, 7 and 8 of this Agreement cannot readily be ascertained. Further, the Employee agrees that timely payment to the Employer as set forth in this
Section&nbsp;10(d)(2)is not a penalty, and it does not preclude the Employer from seeking all other remedies including injunctive relief that may be available to the Employer. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) <U>Section&nbsp;409A/Termination of Employment</U>. The provisions of this Agreement will be administered, interpreted and construed in a manner
intended to comply with Section&nbsp;409A of the Internal Revenue Code (&#147;Section 409A&#148;), the regulations issued thereunder or any exception thereto (or disregarded to the extent such provision cannot be so administered, interpreted, or
construed). </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(1) For purposes of the Agreement, the Employee shall be considered to have experienced a termination of employment only if
the Employee has terminated employment with the Employer and all of its controlled group members within the meaning of Section&nbsp;409A of the Code. For purposes hereof, the determination of controlled group members shall be made pursuant to the
provisions of Section&nbsp;414(b) and 414(c) of the Code; provided that the language &#147;at least 50 percent&#148; shall be used instead of &#147;at least 80 percent&#148; in each place it appears in Section&nbsp;1563(a)(1),(2) and (3)&nbsp;of the
Code and Treas. Reg. &#167; 1.414(c)-2; provided, </FONT>
</P>

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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">further, where legitimate business reasons exist (within the meaning of Treas. Reg. &#167; 1.409A-1(h)(3)), the language &#147;at least 20 percent&#148;
shall be used instead of &#147;at least 80 percent&#148; in each place it appears. Whether the Employee has terminated employment will be determined based on all of the facts and circumstances and in accordance with the guidance issued under
Section&nbsp;409A of the Code. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%;padding-bottom:3px;line-height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">(2) For purposes of Section&nbsp;409A, each
severance benefit payment shall be treated as a separate payment. Each payment under this Agreement is intended to be excepted from Section&nbsp;409A to the maximum extent provided under Section&nbsp;409A as follows: (i)&nbsp;each payment that is
scheduled to be made following the Employee&#146;s termination date and within the applicable 2<FONT SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">2</FONT><FONT FACE="Times New Roman" SIZE="2"> month period specified in
Treas. Reg. &#167; 1.409A-1(b)(4) is intended to be excepted under the short-term deferral exception as specified in Treas. Reg. &#167; 1.409A-1(b)(4); (ii)&nbsp;post-termination medical benefits are intended to be excepted under the medical
benefits exception as specified in Treas. Reg. &#167; 1.409A-1(b)(9)(v)(B), and (iii)&nbsp;each payment that is not otherwise excepted under the short-term deferral exception or medical benefits exception is intended to be excepted under the
involuntary pay exception as specified in Treas. Reg. &#167; 1.409A-1(b)(9)(iii). The Employee shall have no right to designate the date of any payment under this Agreement. </FONT></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(3) With respect to payments subject to Section&nbsp;409A of the Code (and not excepted therefrom), if any, it is intended that each payment is paid on
permissible distribution event and at a specified time consistent with Section&nbsp;409A of the Code. The Employer reserves the right to accelerate and/or defer any payment to the extent permitted and consistent with
Section&nbsp;409A.&nbsp;Notwithstanding any provision of this Agreement to the contrary, to the extent that a payment hereunder is subject to Section&nbsp;409A of the Code (and not excepted therefrom) and payable on account or a termination of
employment, such payment shall be delayed for a period of six months after the date of termination (or, if earlier, the death of the Employee) if the Employee is a &#147;specified employee&#148; (as defined in Section&nbsp;409A of the Code and
determined in accordance with the procedures established by the Employer). Any payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period in the month following
the month containing the six (6)&nbsp;month anniversary of the date of termination. Notwithstanding any provision of this Agreement to the contrary, to the extent the timing of any severance benefit payment due under this Agreement was modified
pursuant to the transition guidance provided by the IRS concerning the time and form of payment, any such modification shall only apply to amounts that would not otherwise be payable in 2008 and may not cause an amount to be paid in 2008 that would
not otherwise be paid in 2008. To the extent any such payment can not be made in 2008 under the transition guidance, such payment will be made in January 2009. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(f) <U>Definitions</U>. For purposes of this Agreement, the following definitions shall have the following meanings: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(1) &#147;<U>Cause</U>&#148; shall mean a determination by the Employer&#146;s Board of Directors, in the exercise of its reasonable judgment, that any of the following has occurred: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the willful and continued failure by the Employee to perform his duties and responsibilities with the Employer under the Agreement (other than any such failure resulting from
incapacity due to physical or mental illness or disability) which is not cured within thirty (30)&nbsp;days of receiving written notice from the Employer specifying in reasonable detail the duties and responsibilities which the Employer believes are
not being adequately performed; </FONT></TD></TR></TABLE>

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<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the willful engaging by the Employee in any act which is materially damaging to the Employer; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the conviction of the Employee of, or a plea of &#147;guilty&#148; or &#147;no contest&#148; to, (A)&nbsp;any felony or (B)&nbsp;a criminal offense involving fraud, dishonesty or
other moral turpitude; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">any material breach by the Employee of the terms of the Agreement or any other written agreement between the Employee and the Employer relating to proprietary information,
confidentiality, non-competition or non-solicitation; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(v)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the engaging by the Employee in any intentional act of dishonesty resulting or intended to result, directly or indirectly, in personal gain to the Employee at the Employer&#146;s
expense. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(2) &#147;<U>Change in Control</U>&#148; shall be deemed to have occurred when: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the Employer is merged or consolidated with another entity the result of which is that immediately following such transaction (A)&nbsp;the persons who were the shareholders of the
Employer immediately prior to such transaction have less than a majority of the voting power of the Employer or the entity owing or controlling the Employer or (B)&nbsp;the individuals who comprised the Board of Directors of the Employer immediately
prior to such transaction cease to be at least a majority of the members of the Board of Directors of the Employer or of the entity controlling the Employer, or </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a majority of the Employer&#146;s assets are sold or otherwise transferred to another corporation not controlled by or under common control with the Employer or to a partnership,
firm, entity or one or more individuals not so controlled, or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">a majority of the members of the Employer&#146;s Board of Directors consists of persons who were not nominated for election as </FONT>
</P></TD></TR></TABLE>

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<TR>
<TD WIDTH="17%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P>
<FONT FACE="Times New Roman" SIZE="2">directors by or on behalf of the Employer&#146;s Board of Directors or with the express concurrence of the Employer&#146;s Board of Directors, or
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a single person, or a group of persons acting in concert, obtains voting control over a majority of the Employer&#146;s outstanding voting shares; provided, however, that a Change
in Control shall not have occurred as of result of any transaction in which Carl J. Johnson, and/or his affiliates, including the II-VI Incorporated Foundation, directly or indirectly, acquire more than a majority of the assets or stock of the
Employer or of the entity controlling the Employer. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(3) &#147;<U>Good Reason</U>&#148; means, without the
Employee&#146;s express written consent: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction of Employee&#146;s employment responsibilities; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction by the Employer of the Employee&#146;s eligibility for Total Target Compensation as in effect immediately prior to such reduction. &#147;<U>Total Target
Compensation</U>&#148; shall mean the Employee&#146;s annual base salary plus the cash and stock compensation the Employee is eligible to receive at 100% performance, whether sales incentive, bonus or otherwise; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material increase in the amount of Employee&#146;s business travel which produces a constructive relocation of Employee; </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">a material reduction by the Employer in the kind or level of employee benefits to which the Employee is entitled immediately prior to such reduction with the result that the
Employee&#146;s overall benefits package is significantly reduced; or </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(v)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">the relocation of the Employee to a facility or a location more than fifty (50)&nbsp;miles from Saxonburg, Pennsylvania. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">In order for the Employee to terminate for Good Reason, (A)&nbsp;the Employer must be notified by the Employee in writing within ninety
(90)&nbsp;days of the event constituting Good Reason, (B)&nbsp;the event must remain uncorrected by the Employer for thirty (30)&nbsp;days following such notice (the &#147;Notice Period&#148;), and (C)&nbsp;such termination must occur within sixty
(60)&nbsp;days after the expiration of the Notice Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11. Employee agrees, upon the termination of his employment with Employer for
any reason whatsoever, to return to an officer of Employer all equipment, records, copies of records, papers and other work product pertaining to any work performed by Employee while associated </FONT>
</P>

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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">with Employer. The Employee shall also provide the Employer, if requested to do so, the name of the new employer of Employee. In the event Employee shall
fail to comply with the provisions of this paragraph, or in the event Employee shall violate this Agreement, Employee shall forfeit all claims to unpaid compensation without affecting the right of Employer to compel the return of said records and
papers. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">12. In the event that, and if for any reason, any portion of this Agreement shall be held to be invalid or unenforceable, it is
agreed that the remaining covenants and restrictions or portions thereof shall remain in full force and effect, and that if the validity or unenforceability is due to the unreasonableness of the time or geographical area covered by said covenants
and restrictions, said covenants and restrictions of this Agreement shall nevertheless be effective for such period of time and for such area as may be determined to be reasonable by a Court of competent jurisdiction. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">13. Both parties agree not to make any disparaging statements that reflect negatively on the reputation or good name of the other. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">14. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of the
Employee by the Employer and contains all of the covenants and agreements between the parties with respect to such employment in any manner whatsoever. No alterations, amendments, changes or additions to this Agreement will be binding upon either
Employer or Employee unless in writing and signed by both parties. No waiver of any right arising under this Agreement made by either party will be valid unless set forth in writing signed by both parties. Notwithstanding the foregoing or any
provision of this Agreement to the contrary, the Employer may at any time (after consultation with the Employee) modify, amend or terminate any or all of the provisions of this Agreement or take any other action, to the extent necessary or advisable
to conform the provisions of this Agreement or the benefits provided thereunder with Section&nbsp;409A of the Code, the regulations issued thereunder or an exception thereto. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">15. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">16. This Agreement is binding upon the parties hereto and their respective heirs, personal representatives, successors and assigns. Employee agrees that
the obligations of Sections 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16 and 17 of this Agreement will survive the termination of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">17. Employer may assign its rights under this Agreement to an affiliate, subsidiary, or parent of Employer or to any corporation acquiring all or substantially all of the assets of Employer or to any other corporation into which Employer
may be liquidated, merged, or consolidated. The terms of this Agreement will survive such assignment unless termination of the Agreement is provided prior to such assignment. In the event of an assignment by Employer of this Agreement, the assignee
or successor party shall have the same rights and obligations under this Agreement as Employer. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF</B>, the parties hereto intending to be legally bound have set their hands and
seals the day and year first above written. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="47%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="46%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ATTEST:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">II-VI INCORPORATED</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Craig A. Creaturo</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Francis J. Kramer</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Craig Creaturo, Treasurer</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Francis J. Kramer, President</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">WITNESS:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">EMPLOYEE:</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michelle L. Freehling</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ James Martinelli</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Michelle L. Freehling</FONT></TD>
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<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">James Martinelli</FONT></TD></TR>
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