UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

SCHEDULE 14A

(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT
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Meridian Bioscience, Inc.

 

(Name of Registrant as Specified in Its Charter)

(Name of Person(s) Filing Proxy Statement if Other Than the Registrant)

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MERIDIAN BIOSCIENCE, INC.
3471 River Hills Drive
Cincinnati, Ohio 45244
www.meridianbioscience.com

Notice of Annual Meeting
and Proxy Statement

Dear Shareholder:

Our Annual Meeting of Shareholders will be held at 2:00 p.m. on January 21, 2010 at the Holiday Inn, 4501 Eastgate Boulevard, Cincinnati, OH 45245. We hope you will attend.

At the meeting, you will hear a report on our operations and have a chance to meet your directors and executive officers.

This booklet includes the formal notice of the meeting and the proxy statement. The proxy statement tells you more about the agenda and procedures for the meeting. It also describes how the Board operates and gives personal information about our director candidates.

We are pleased to take advantage of new U.S. Securities and Exchange Commission rules that allow companies to furnish their proxy materials over the Internet. As a result, we are mailing to most of our shareholders a Notice of Internet Availability of Proxy Materials (the “Notice”) instead of a paper copy of this proxy statement and our Annual Report. The Notice contains instructions on how to access and review those documents over the Internet. We believe that this new process will allow us to provide our shareholders with the information they need in a more timely manner, while reducing the environmental impact and lowering the costs of printing and distributing our proxy materials. If you received a Notice by mail and would like to receive a printed copy of our proxy materials, you should follow the instructions for requesting such materials included in the Notice.

Whether or not you plan to attend the meeting, please complete, sign, date, and return your proxy card promptly in the enclosed envelope.

Sincerely yours,

/s/ William J. Motto   William J. Motto
Executive Chairman of the Board

December 10, 2009

NOTICE OF ANNUAL MEETING
OF
SHAREHOLDERS OF MERIDIAN BIOSCIENCE, INC.

Time:

2:00 p.m., Eastern Standard Time

Date:

January 21, 2010

Place:

Holiday Inn
4501 Eastgate Blvd.
Cincinnati, Ohio 45245

Purpose:

	•		Elect as directors the seven nominees named in the attached proxy materials
	•		Ratify appointment of Grant Thornton LLP as Meridian’s independent registered public accountants for fiscal year 2010
	•		Conduct other business if properly raised

Only shareholders of record on November 23, 2009 may vote at the meeting. The approximate mailing date of this proxy statement and accompanying Proxy Card is December 10, 2009.

Your vote is important. Please complete, sign, date, and return your Proxy Card promptly in the enclosed envelope.

/s/ Melissa Lueke   Melissa Lueke
Secretary

December 10, 2009

TABLE OF CONTENTS

		Page
GENERAL INFORMATION			1
ELECTION OF DIRECTORS			2
RATIFICATION OF APPOINTMENT OF ACCOUNTANTS			4
CORPORATE GOVERNANCE			5
DIRECTORS AND EXECUTIVE OFFICERS			10
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS			12
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE			12
TRANSACTIONS WITH RELATED PERSONS			12
COMPENSATION DISCUSSION AND ANALYSIS			13
SUMMARY COMPENSATION TABLE			22
DIRECTOR COMPENSATION			26
SHAREHOLDER PROPOSALS FOR NEXT YEAR			27
QUESTIONS?			28

Meridian makes available, free of charge on its website, all of its filings that are made electronically with the Securities and Exchange Commission (“SEC”), including Forms 10-K, 10-Q and 8-K. These filings are also available on the SEC’s website (www.sec.gov). To access these filings, go to our website (www.meridianbioscience.com). Copies of Meridian’s Annual Report on Form 10-K for the fiscal year ended September 30, 2009, including financial statements and schedules thereto, filed with the SEC, are also available without charge to shareholders upon written request addressed to:

Melissa Lueke, Executive Vice President, Chief Financial Officer and Secretary
Meridian Bioscience, Inc.
3471 River Hills Drive
Cincinnati, Ohio 45244

GENERAL INFORMATION

Who may vote

Shareholders of Meridian, as recorded in our stock register on November 23, 2009, may vote at the meeting. As of that date, Meridian had 40,496,745 shares of Common Stock outstanding.

How to vote

You may vote in person at the meeting or by proxy. We recommend you vote by proxy even if you plan to attend the meeting. You can always change your vote at the meeting.

How proxies work

Meridian’s Board of Directors is asking for your proxy. Giving us your proxy means you authorize us to vote your shares at the meeting in the manner you direct. You may vote for all, some or none of our director candidates. You may also vote for or against the other proposals or abstain from voting.

If you sign and return the enclosed proxy card but do not specify how to vote, we will vote your shares in favor of our director candidates and the ratification of appointment of Grant Thornton LLP as Meridian’s independent registered public accountants for fiscal year 2010. If any other matters come before the meeting or any postponement or adjournment thereof, each proxy will be voted in the discretion of the individuals named as proxies on the card.

You may receive more than one proxy or voting card depending on how you hold your shares. Shares registered in your name are covered by one card. If you hold shares through someone else, such as a stockbroker, bank, or nominee, you may get material from them asking how you want to vote.

Stockbrokers, banks and nominees holding shares for beneficial owners must vote those shares as instructed. If the stockbroker, bank, or nominee has not received instructions from you, the beneficial owner, the stockbroker, bank, or nominee generally has discretionary voting power only with respect to the ratification of appointment of the independent registered public accountants. However, unlike in years past, a stockbroker, bank, or nominee no longer has discretion to vote for or against the election of directors. In order to avoid a broker non-vote of your shares on the election of directors, you must send voting instructions to your stockbroker, bank or nominee.

Revoking a proxy

You may revoke your proxy before it is voted by submitting a new proxy with a later date, by voting in person at the meeting, or by notifying Meridian’s Secretary in writing at the address under “Questions?” on page 28.

Quorum

In order to carry on the business of the meeting, we must have a quorum. This means at least a majority of the outstanding shares eligible to vote must be represented at the meeting, either by proxy or in person.

Votes needed

The seven director candidates receiving the most votes will be elected to fill the seats on the Board. The ratification of appointment of accountants requires the favorable vote of a majority of the votes cast. Only votes for or against these proposals count. Abstentions and broker non-votes count for quorum purposes but not for voting purposes. Broker non-votes occur when a broker returns a proxy card but does not have authority to vote on a particular proposal.

Other Matters

Any other matters considered at the meeting, including postponement or adjournment, will require the affirmative vote of a majority of the votes cast.

ELECTION OF DIRECTORS

(Item 1 on the Proxy Card)

The Nominating Committee of the Board of Directors has nominated for re-election all of the following current directors: James M. Anderson, James A. Buzard, John A. Kraeutler, Gary P. Kreider, William J. Motto, David C. Phillips and Robert J. Ready.

Proxies solicited by the Board will be voted for the election of these nominees. All directors elected at the Annual Shareholders’ Meeting will be elected to hold office until the next annual meeting. In voting to elect directors, shareholders are entitled to cumulate their votes and to give one candidate a number of votes equal to the number of directors to be elected multiplied by the number of shares held by the shareholder, or to distribute their votes on the same principle among as many candidates as the shareholder sees fit. In order to invoke cumulative voting, notice of cumulative voting must be given in writing by a shareholder to the Chief Executive Officer, a Vice President or the Secretary of Meridian not less than 48 hours prior to the Annual Shareholders’ Meeting. The proxies solicited include discretionary authority to cumulate votes.

All Meridian directors are elected for one-year terms. Personal information on each of our nominees is given below.

If a director nominee becomes unavailable before the election, your proxy card authorizes us to vote for a replacement nominee if the Board names one.

The Board recommends that you vote FOR each of the following candidates:

James M. Anderson Director since 2009 Age: 67		James M. Anderson is currently the President and Chief Executive Officer of Cincinnati Children’s Hospital Medical Center, although he has announced he will step down as of the end of calendar 2009. He was recently appointed chairman of the Board of the Cincinnati Branch of the Federal Reserve Bank of Cleveland. Prior to joining the staff of Cincinnati Children’s, Mr. Anderson was a partner in the general corporate department at Taft, Stettinius & Hollister for 24 years (1968-1977; 1982-96) and president of US operations at Xomox Corporation (1977-82), a publicly-traded manufacturer of specialty process controls.
James A. Buzard, Ph.D. Director since 1990 Age: 82		James A. Buzard, Ph.D. serves as Chairman of the Nominating and Corporate Governance Committee. Mr. Buzard was Executive Vice President of Merrell Dow Pharmaceuticals Inc. from March 1981 until December 1989. From December 1989 until his retirement in February 1990, he was Vice President of Marion Merrell Dow, Inc. He has been a business consultant since February 1990.
John A. Kraeutler Director since 1997 Age: 61		John A. Kraeutler has more than 30 years of experience in the medical diagnostics industry and joined Meridian as Executive Vice President and Chief Operating Officer in January 1992. In July 1992, Mr. Kraeutler was named President of Meridian, and in January 2008, Mr. Kraeutler was named Chief Executive Officer of Meridian. Before joining Meridian, Mr. Kraeutler served as Vice President, General Manager for a division of Carter-Wallace, Inc. Prior to that, he held key marketing and technical positions with Becton, Dickinson and Company and Organon, Inc.
Gary P. Kreider, Esq. Director since 1991 Age: 71		Gary P. Kreider serves as Board Secretary. Mr. Kreider is a senior partner in the Cincinnati law firm of Keating Muething & Klekamp PLL, the Company’s outside counsel. His primary practice areas are securities law, mergers and acquisitions, and general corporate law, and he has been with Keating Muething & Klekamp since 1963. Effective October 1, 2005, Mr. Kreider no longer has a vote or partnership interest in the firm’s earnings or revenues, although his affiliation with the firm continues. Mr. Kreider has been an Adjunct Professor of Law in securities regulation at the University of Cincinnati College of Law since 1977 and is a past Chairman of the Ohio State Bar Association Corporation Law Committee. Mr. Kreider is also a director of LSI Industries Inc.

William J. Motto Director since 1977 Age: 68		William J. Motto has more than 35 years of experience in the pharmaceutical and diagnostics products industries, is a founder of Meridian and has been Chairman of the Board since 1977. Mr. Motto became Executive Chairman of the Board in January 2008. Before forming Meridian, Mr. Motto served in various capacities for Wampole Laboratories, Inc., Marion Laboratories, Inc. and Analytab Products, Inc., a division of American Home Products Corp.
David C. Phillips Director since 2000 Age: 71		David C. Phillips serves as Chairman of the Audit Committee. Mr. Phillips spent 32 years with Arthur Andersen LLP. His service with this firm included several managing partner leadership positions. After retiring from Arthur Andersen in 1994, Mr. Phillips became Chief Executive Officer of Downtown Cincinnati, Inc., which is responsible for economic revitalization of Downtown Cincinnati. Mr. Phillips retired from DCI in 1999 to devote full time to Cincinnati Works, Inc., an organization dedicated to reducing the number of people living below the poverty level by assisting them to strive towards self-sufficiency through work, and his financial consulting services. Mr. Phillips serves as a director of Cintas Corporation.
Robert J. Ready Director since 1986 Age: 69		Robert J. Ready serves as Chairman of the Compensation Committee. Mr. Ready founded LSI Industries Inc., Cincinnati, Ohio in 1976, which engineers, manufactures and markets commercial/industrial lighting and graphics products, and has served as its President and Chairman of its Board of Directors since that time.

RATIFICATION OF APPOINTMENT OF ACCOUNTANTS

(Item 2 on the Proxy Card)

Although not required, we are seeking shareholder ratification of the Audit Committee’s selection of Grant Thornton LLP as Meridian’s independent registered public accounting firm for the 2010 fiscal year. The affirmative vote of a majority of shares voting at the meeting is required for ratification. If ratification is not obtained, the Audit Committee intends to continue the employment of Grant Thornton at least through fiscal 2010. Representatives of Grant Thornton are expected to be present at the Annual Shareholders’ Meeting and will be given an opportunity to make a statement, if they so desire, and to respond to appropriate questions that may be asked by shareholders.

Principal Accounting Firm Fees:

Aggregate fees billed to Meridian by Grant Thornton LLP for fiscal years 2009 and 2008 are listed below:

		2009				2008
Audit Fees		$	271,500			$	283,000
Audit-Related Fees			17,078				38,229
		$	288,578			$	321,229

Audit Fees. Audit fees are the fees billed for professional services rendered by Meridian’s independent registered public accounting firm for their audit of Meridian’s consolidated annual financial statements for the fiscal years ended September 30, 2009 and 2008, respectively, and reviews of the unaudited quarterly consolidated financial statements contained in the reports on Form 10-Q filed by Meridian during those years and on reporting on Meridian’s internal control during those years.

Audit-Related Fees. Audit-related fees are the fees billed for assurance and related services that are reasonably related to the performance of the audit or review of Meridian’s financial statements.

The Board recommends that you vote FOR the ratification of appointment of Grant Thornton LLP as Meridian’s independent registered public accounting firm for the 2010 fiscal year.

CORPORATE GOVERNANCE

As an Ohio corporation, Meridian is governed by the corporate laws of Ohio. Since its common shares are publicly traded on the Nasdaq Global Select Market and it files reports with the Securities and Exchange Commission, it is also subject to Nasdaq rules and federal securities laws.

Governance of the corporation is placed in the hands of the directors who, in turn, elect officers to manage the business operations. The Board oversees the management of Meridian on your behalf. The Board reviews Meridian’s long-term strategic plans and exercises direct decision making authority in all major decisions, such as acquisitions, the declaration of dividends, major capital expenditures and the establishment of company policies.

In accordance with Nasdaq rules, our Board of Directors affirmatively determines the independence of each director and nominee for election as a director in accordance with the elements of independence set forth in the Nasdaq listing standards and Exchange Act rules. Meridian’s Director Independence Standards are available at our website www.meridianbioscience.com. Based on these standards, the Board determined that each of the following members of the Board is independent: James M. Anderson, James A.

Buzard, Gary P. Kreider, David C. Phillips, and Robert J. Ready. In 2009, the Board of Directors revised its Committee membership structure. Mr. Kreider, an independent outside Director since 1991, no longer chairs or serves on any of the Board Committees. He remains a Director and serves as recording secretary. Only independent directors serve on Committees of the Board.

During fiscal 2009, the Board of Directors met on four occasions. The independent directors plan to meet at least two times during fiscal 2010 without the presence of management directors. The independent members of the Board had one such meeting in fiscal 2009. The independent directors select one of such directors to preside over each session.

Meridian expects all directors to attend shareholders’ meetings. With the exception of James M. Anderson, who had not yet been appointed as a director at that time, each director attended the 2009 Annual Shareholders’ Meeting, all meetings of the Board and all meetings of Committees of which he was a member. Mr. Anderson attended all meetings of the Board subsequent to his appointment to the Board in July 2009.

Shareholders may communicate with the full Board or individual directors on matters concerning Meridian by mail or through our website, in each case to the attention of the Secretary, the address for whom is set forth on the last page of this proxy statement.

The Board has adopted a Code of Ethics applicable to Meridian’s officers, directors and employees. This Code of Ethics is posted on www.meridianbioscience.com. To the extent permitted by Nasdaq Marketplace Rule 5610, any amendments to or waivers from the Code of Ethics will be posted on our website within four business days after the date of an amendment.

The directors have organized themselves into the committees described below. Each of these Committees has a charter posted on www.meridianbioscience.com. Meridian does not have an Executive Committee of its Board of Directors.

The Audit Committee is composed of David C. Phillips (Chairman), James A. Buzard and Robert J. Ready. It met nine times during fiscal 2009 and took no actions in writing. Each member is able to read and understand fundamental financial statements. David C. Phillips has been designated as an Audit Committee financial expert as that term is defined by the Securities and Exchange Commission.

The Committee oversees the accounting and financial reporting processes of Meridian and the audits of its financial statements by its independent registered public accounting firm. The Committee is solely responsible for the appointment, compensation, retention and oversight of Meridian’s independent registered public accounting firm. The Audit Committee also evaluates information received from Meridian’s independent registered public accounting firm and management to determine whether the independent registered public accounting firm is independent of management. The independent registered public accounting firm reports directly to the Audit Committee.

In addition, the Audit Committee has established procedures for the receipt, retention and treatment of complaints received by Meridian concerning accounting, internal accounting controls or auditing matters and has established procedures for the confidential and anonymous submission by employees of any concerns they may have regarding questionable accounting or auditing matters.

The Audit Committee, or its Chairman, approves all audit and non-audit services performed for Meridian by its independent registered public accounting firm before those services are commenced. The Chairman reports to the full Committee at each of its meetings regarding pre-approvals he made since the prior meeting and the Committee approves what he has done between meetings. For these purposes, the Committee or its Chairman is provided with information as to the nature, extent and purpose of each proposed service, as well as the approximate timeframe and proposed cost arrangements for that service.

The Committee has submitted the following report for inclusion in this proxy statement.

REPORT OF THE AUDIT COMMITTEE

On April 15, 2009, the Audit Committee met with representatives of Grant Thornton and Meridian’s internal accountants and reviewed with them the proposed 2009 Audit Plan, areas warranting particular concentration on the audit and the effects of new accounting pronouncements. The Grant Thornton representatives reviewed with the Committee written disclosures required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountants’ communications with the Audit Committee concerning independence, discussed with the Committee the independent accountants’ independence, and has presented a letter regarding that matter to the Committee. The Committee discussed with Grant Thornton its independence. In concluding that the auditors are independent, we determined, among other things, that the nonaudit services provided by the auditors were compatible with their independence.

At its meeting on November 11, 2009, the Committee reviewed and discussed with management, Grant Thornton and Meridian’s accounting officers the results of the audit for fiscal 2009, including the audited financial statements. The Committee reviewed the requirements of its Charter previously adopted and the reports that were required to be disclosed to the Committee. The committee discussed with Grant Thornton the matters required to be discussed by Public Company Accounting Oversight Board (PCAOB) Interim Auditing Standard AU Section 380, Communication with Audit Committees.

Based on the above mentioned review, the Committee recommended to the Board of Directors that the audited financial statements of Meridian be included in its Annual Report on Form 10-K for the year ended September 30, 2009 for filing with the Securities and Exchange Commission.

During its meetings throughout the year, the Committee reviewed procedures related to the receipt, retention and treatment of any complaints concerning accounting, internal accounting controls or auditing matters. Also during its meetings throughout the year, the Chairman of the Audit Committee reported to the full Committee the independent accountants’ fees that

had been pre-approved and the Committee approved such fees. Certain fees were pre-approved by the full Committee. The Committee also reviewed the requirements of and Meridian’s ongoing compliance with Section 404 of the Sarbanes-Oxley Act.

Respectfully submitted,

Audit Committee

David C. Phillips (Chairman)
Robert J. Ready
James A. Buzard

The Compensation Committee is composed of Robert J. Ready (Chairman), James A. Buzard, and David C. Phillips and is responsible for establishing compensation for executive officers and administering the Company’s compensation plans. This includes establishing salary levels and bonus plans, making bonus and stock-based awards, and otherwise dealing in all matters concerning compensation of the executive officers. The Compensation Committee met two times and took no actions in writing during fiscal 2009.

In general, the Compensation Committee annually reviews the Company’s compensation programs and its philosophy in setting performance targets in November of each year. At that time, the Company provides the Compensation Committee with information on total compensation received for all executive officers, including the sources of such compensation, for the immediately preceding fiscal year and recommendations for the current fiscal year. In discharging the responsibilities of the Board of Directors relating to compensation of the Company’s Chief Executive Officer and other executive officers, the purposes of the Compensation Committee are, among others, (i) to review and approve the compensation of the Company’s Chief Executive Officer and other executive officers and (ii) to oversee the compensation policies and programs of the Company, including stock and benefit plans. The Compensation Committee’s specific functions include adopting, administering and approving the Company’s incentive compensation and stock plans and awards, including amendments to the plans or awards and performing such duties and responsibilities under the terms of any executive compensation plan, incentive-compensation plan or equity-based plan. The Compensation Committee has the authority to delegate any of its responsibilities to subcommittees as the Compensation Committee may deem appropriate in its sole discretion. The Compensation Committee has the authority to engage consultants and advisors. The Compensation Committee did not engage a consultant this year. The Compensation Committee has an appropriate level of contact among its members and the Company’s executive officers in connection with the analysis of this data.

The Executive Chairman, Mr. Motto, provides input and recommendations to the Compensation Committee with respect to the compensation to be paid to the non-employee members of the Board, as well as Mr. Kraeutler. As Meridian’s Chief Executive Officer, Mr.

Kraeutler provides recommendations to the Compensation Committee with respect to compensation to be paid to the other corporate officers.

To achieve compensation objectives, the Committee believes it is important to provide competitive levels of compensation to retain the most qualified employees, to recognize individuals who exceed expectations and to closely link executive compensation with corporate performance. The Committee believes Meridian’s long-term objectives can be achieved through cash incentive compensation plans and equity incentive compensation plans.

The Compensation Committee’s processes and procedures for the consideration and determination of executive and director compensation are discussed in the section entitled “Compensation Discussion and Analysis” in this proxy statement.

Compensation Committee Interlocks and Insider Participation

None of the members of the Compensation Committee has ever been an officer or employee of the Company. None of the members of the Compensation Committee is or was a participant in any related person transaction in fiscal 2009 (see the section entitled “Transactions With Related Persons” in this proxy statement for a description of our policy on related person transactions). Lastly, none of the members of the Compensation Committee is an executive officer of another entity at which one of our executive officers serves on the Board of Directors. No named executive officer of Meridian serves as a director or as a member of a committee of any company of which any of the Company’s non-employee directors are executive officers.

The Nominating Committee consists of James A. Buzard (Chairman), Robert J. Ready, and David C. Phillips. It met one time last year and took no actions in writing. On November 12, 2009, the Nominating Committee considered and nominated the current directors for re-election. The Nominating Committee identifies qualified nominees for the Board, determines who will be nominated by the Company for election to the Board and recommends to the full Board any changes in the size of the Board.

In nominating directors, the Nominating Committee takes into account, among other factors which it may deem appropriate, the judgments, skill, diversity, business experience, and the needs of the Board as its function relates to the business of the Company. The Committee considers candidates for nomination from a variety of sources including recommendations of shareholders. Shareholders desiring to submit recommendations for nominations by the Committee should direct them to the Executive Chairman in care of the Company at its address shown on the cover page of this proxy statement.

The Nominating Committee will assess the qualifications of all candidates for the Board on an equal basis. In identifying and considering candidates for nomination to the Board, the Nominating Committee considers, among other factors, quality of experience, the needs of the Company and the range of talent and experience currently represented on the Board.

During several Board meetings in fiscal 2009, the Board discussed the benefits of adding new members to the Board. Pursuant to this, the Nominating Committee considered potential candidates and chose to meet with James M. Anderson. Based upon the review of his qualifications and the favorable results of their meeting, the Board proceeded to nominate him as a candidate to the Board. Mr. Anderson was appointed to the Board in July 2009.

DIRECTORS AND EXECUTIVE OFFICERS

This table lists the executive officers and directors of Meridian and shows the number of shares beneficially owned, as determined under SEC rules, on November 23, 2009. Beneficial ownership includes any shares as to which the individual has sole or shared voting or investment power and also any shares that the individual has the right to acquire as of January 22, 2010 (60 days after November 23, 2009).

				Common Stock
				Beneficially Owned
Name		Position		Amount1				Percentage
William J. Motto		Executive Chairman of the			164,196				*
		Board of Directors
John A. Kraeutler		Chief Executive Officer and			317,260				*
		Director
Antonio A. Interno2		Senior Vice President,			87,955				*
		President and Managing
		Director, Meridian
		Bioscience Europe
Richard L. Eberly3		Executive Vice President,			33,750				*
		President Meridian Life
		Science
Lawrence J. Baldini4		Executive Vice President,			53,750				*
		Operations and Information
		Systems
Melissa A. Lueke5		Executive Vice President,			126,015				*
		Chief Financial Officer and
		Secretary
Susan A. Rolih6		Senior Vice President,			107,750				*
		Regulatory Affairs & Quality
		Assurance
Todd W. Motto7, 8		Vice President, Sales and			515,328				1.3	%
		Marketing
James M. Anderson9		Director			4,750				*
James A. Buzard, Ph.D10, 11, 12		Director			37,500				*
Gary P. Kreider13		Director			30,188				*
Robert J. Ready10, 11, 12		Director			74,347				*
David C. Phillips10, 11, 12		Director			43,350				*
All Executive Officers and Directors as a Group					1,596,139				3.9	%

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

The following table lists the persons known by the Company to be the beneficial owners of more than five percent of the Company’s Common Stock as of November 23, 2009, unless otherwise noted. Beneficial ownership includes any shares as to which the individual has sole or shared voting or investment power.

		Amount and nature of
Name and address of beneficial owner		beneficial ownership				Percent of class1
Barclays Global Investors, NA			2,540,548				6.30
400 Howard Street
San Francisco, CA 94105
Brown Capital Management, Inc.			2,218,961				5.48
1201 N. Calvert Street
Baltimore, MD 21202

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16 of the Securities Exchange Act of 1934 requires Meridian’s executive officers, directors and persons who own more than ten percent of a registered class of Meridian’s equity securities to file reports of ownership and changes in ownership with the Securities and Exchange Commission. Based on a review of the copies of such forms received by it, Meridian believes that during the last fiscal year, all of its executive officers, directors and ten percent stockholders complied with the Section 16 reporting requirements, with the exceptions that Mr. Todd Motto filed one late ownership report with respect to the exercise of stock options and Mr. William J. Motto filed one late ownership report with respect to an estate planning transaction. This transaction involved the transfer of William J. Motto’s shares into a trust over which he claims no beneficial ownership. The shares were incorrectly reported as being beneficially owned by Mr. Motto. In making these statements, Meridian has relied upon examination of the copies of Forms 3, 4, and 5, and amendments thereto, and the written representation of its directors and executive officers.

TRANSACTIONS WITH RELATED PERSONS

Todd Motto, the adult son of William J. Motto, is Vice President, Sales and Marketing. Todd Motto received $264,679 in compensation for fiscal 2009. This compensation consisted of base salary of $200,700, $8,850 of auto and professional allowances, $13,082 of retirement plan contributions, $38,634 related to stock option awards expense related to awards earned in previous years, and $3,413 for dividends on restricted stock granted under the 2004 Equity Compensation Plan.

Nasdaq rules require the Company to conduct an appropriate review of related party transactions required to be disclosed by the Company pursuant to SEC Regulation S-K Item

404 for potential conflict of interest situations on an ongoing basis and that all such transactions must be approved by the Audit Committee or another committee comprised of independent directors. As a result, the Audit Committee annually reviews all such related party transactions and approves each related party transaction if it determines that it is in the best interests of the Company. Additionally, the Audit Committee’s Charter provides it the authority to review, approve and monitor transactions involving the Company and “related persons” (directors and executive officers or their immediate family members, or shareholders owning five percent or greater of the Company’s outstanding stock). This also covers any related person transaction that meets the minimum threshold for disclosure in the proxy statement under the relevant SEC rules (generally, transactions involving amounts exceeding $120,000 in which a related person has a direct or indirect material interest). In considering the transaction, the Audit Committee may consider all relevant factors, including, as applicable, (i) the Company’s business rationale for entering into the transaction; (ii) the alternatives to entering into a related person transaction; (iii) whether the transaction is on terms comparable to those available to third parties, or in the case of employment relationships, to employees generally; (iv) the potential for the transaction to lead to an actual or apparent conflict of interest and any safeguards imposed to prevent such actual or apparent conflicts; and (v) the overall fairness of the transaction to the Company. This policy is included in the Company’s Employee Handbook. The approval of such related person transactions are evidenced by internal Company resolutions or memoranda.

COMPENSATION DISCUSSION AND ANALYSIS

Throughout this proxy statement, the individuals who served as the Company’s Chief Executive Officer and Chief Financial Officer during fiscal 2009, as well as the other individuals listed in the Summary Compensation Table below, are referred to as the “named executive officers” or “NEOs.”

Compensation Philosophy and Objectives

Our policies regarding executive compensation programs are intended to balance motivating, rewarding, and retaining executives with a competitive compensation package, and maximizing long-term shareholder value by linking compensation earned to both individual and Company performance. Compensation typically includes base salary, eligibility for annual cash bonuses and stock-based awards contingent on Company performance and/or future service, retirement plan contributions, and other Company-sponsored benefits. A significant portion of each executive officer’s cash bonus and stock-based awards are dependent upon achieving business and financial goals and realizing other performance objectives. Examples of Company performance metrics for which we measure achievement are sales growth, net earnings growth and profit margins (gross profit, operating income and net earnings). Annual performance targets for these metrics are set at or above industry averages and historical results. Our compensation programs are intended to reward individual contributions (for example, bringing a new product to market) and Company-wide achievement of performance metric targets (for example, overall sales and net earnings growth).

The Compensation Committee of the Board of Directors is responsible for the development

and ongoing oversight of compliance with this compensation philosophy. The Compensation Committee ensures that the total compensation paid to the NEOs is fair, reasonable, and competitive.

Establishing Compensation Levels

Compensation levels for the NEOs are driven by market pay levels, the executive officer’s leadership performance and overall Company performance. The Compensation Committee relies upon a combination of judgment (which is necessarily subjective) and guidelines (discussed herein), as well as market data, in determining the amount and mix of compensation components for the Executive Chairman. The compensation levels for the Chief Executive Officer are recommended to the Compensation Committee by the Executive Chairman; the compensation levels for the other NEOs are recommended by the Chief Executive Officer. The Compensation Committee has discretion to follow or modify such recommended levels of compensation. The Compensation Committee considers as crucial the input of our Executive Chairman and Chief Executive Officer in connection with its compensation processes and decisions relating to NEO compensation. The Compensation Committee is not obligated to follow their recommendations. The Company does not engage in strict numerical benchmarking in determining the percentage increases for the NEOs.

Market Pay Levels

Market pay levels for the NEOs are determined annually in November for the upcoming calendar year. From time to time, at the request of the Compensation Committee, an outside financial advisor is used to gather and summarize for the Company disclosures of executive compensation paid by other publicly traded companies in the diagnostic and life science industries, as well as those outside such industries in the Greater Cincinnati area. This information concerns base salary, bonus awards and long-term incentive awards such as stock options and/or restricted stock for these peer companies, as well as their revenue, net earnings and market capitalization levels in order to take company size into consideration. The Compensation Committee considers this competitive market compensation paid by such companies, but does not attempt to maintain a certain target percentile within a peer group or otherwise rely on that data to determine executive compensation. This means that the Compensation Committee considers this information generally and as a reference point in determining the amounts and elements of our compensation program. For example, the Compensation Committee periodically reviews proxy statements of our industry peers to review their long-term incentive components in order to understand compensation trends in stock options, restricted stock and similar equity instruments. In other words, although it does not utilize such information for benchmarking purposes, the Compensation Committee considers such information as part of its decision-making process with respect to the Company’s executive compensation programs.

Company Performance

We believe that certain Company performance metrics drive shareholder value through stock price appreciation and dividends. We take this belief into account in setting performance metric targets that are considered in establishing the performance-based component of our

compensation programs. Performance metric targets that are taken into consideration in our compensation programs include sales growth, earnings growth and profit margins. These targets are set at or above industry averages and historical results.

Our cash bonus and a portion of our stock-based award programs operate under the fundamental principle that minimum levels of net earnings be achieved prior to any compensation being earned under these programs. Net earnings targets are determined based on what the Company believes to be meaningful growth rates relative to its industry peers and the Company’s performance objectives. Stock-based awards granted under performance programs are forfeited if the Company does not meet its minimum earnings targets as specified in each grant.

Recovery of Prior Awards

Except as provided by applicable laws and regulations, we do not have a policy with respect to adjustment or recovery of awards or payments if relevant Company performance measures upon which previous awards were based are restated or otherwise adjusted in a manner that would reduce the size of such award or payment. Under those circumstances, we expect that the Compensation Committee and the Board would evaluate whether compensation adjustments were appropriate based upon the facts and circumstances surrounding the applicable restatement or adjustment.

Tally Sheets

In setting the NEOs’ compensation, the Compensation Committee reviews all components of such compensation through the use of tally sheets. These tally sheets provide the amount of total compensation paid or earned by each NEO based on his or her base salary, cash bonus, stock-based awards, retirement contributions, and perquisites. The tally sheets reviewed provide all of the information that is reflected in the Summary Compensation Table. The review by the Compensation Committee analyzes how changes in any element of compensation would impact other elements, particularly severance or change in control benefits, if applicable to the executive. Although this year such analysis did not result in the issuance of additional awards, such analysis has become an important component in the Compensation Committee’s review of executive compensation as the tally sheet allows the Compensation Committee to consider an executive’s overall compensation rather than only one or two specific components of an executive’s compensation. This allows the Compensation Committee to make compensation decisions and evaluate management recommendations based on a complete analysis of an executive’s total compensation.

Components of Executive Compensation

Meridian’s executive compensation and benefits packages consist of: base salary, cash bonuses, long-term equity incentive awards, and Company-sponsored benefit and retirement plans. Each of these components has a certain risk profile.

Element		Form of Compensation		Purpose		Risk Profile
Base Salaries		Cash		Provides competitive, fixed compensation to attract and retain exceptional executive talent		Low to moderate
Annual Cash Incentives		Cash		Provides a direct financial incentive to achieve corporate and individual operating goals		Moderate to high
Long-Term Equity Incentives		Incentive stock options, non-qualified stock options, restricted stock and stock appreciation rights		Encourages executive officers to build and maintain a long-term equity ownership position in Meridian so that their interests are aligned with our shareholders		High
Health, Retirement and Other Benefits		Eligibility to participate in benefit plans generally available to our employees, including Retirement Plan contributions, premiums paid on long-term disability and life insurance policies, and certain perquisites		Benefit plans are part of a broad-based employee benefits program; the perquisites provide competitive benefits to our executive officers		Low

The Compensation Committee has reviewed the risk profile of the components of the Company’s executive compensation program, including the performance objectives and target levels used in connection with incentive awards, and has considered the risks an NEO might be incentivized to take with respect to such components. When establishing the mix among these components, the Compensation Committee is careful not to encourage excessive risk taking. Specifically, the performance objectives contained in the Company’s executive compensation programs have been balanced between annual and long-term incentive compensation to ensure that both components are aligned and consistent with our long-term business plan and that our overall mix of equity-based awards has been allocated to promote an appropriate combination of incentive and retention objectives.

The Compensation Committee believes that the Company’s executive compensation program does not incentivize the NEOs to engage in business activities or other behavior that would threaten the value of the Company or the investments of its shareholders.

The Compensation Committee continues to monitor and evaluate on an on-going basis the

mix of compensation, especially equity compensation, awarded to the named executive officers, and the extent to which such compensation aligns the interests of the NEOs with those of the Company’s shareholders. In connection with this practice, the Compensation Committee has, from time to time, reconsidered the structure of the Company’s executive compensation program and the relative weighting of various compensation elements. As an example, since 2008 the Committee has granted a mix of restricted stock awards and options to key executives in place of solely options. As discussed below, some of the restricted stock awards are time-based, while others are performance-based.

Interplay of Compensation Elements

We believe that each element of our compensation program plays a substantial role in maximizing long-term value for our shareholders and employees because of the significant emphasis on pay-for-performance principles. Despite the Company attaining record sales and earnings levels in fiscal 2009, we did not reach our minimum net earnings targets, and therefore, our NEOs did not earn any cash bonuses or the performance-based restricted shares of Common Stock for fiscal 2009. We held to our pay-for-performance principles, which had a significant effect on the amount of compensation realized by our executive officers.

We strive to achieve an appropriate mix between equity incentive awards and cash payments in order to meet our objectives. We use the Officers’ Performance Compensation Plan as another tool to assess an executive’s total pay opportunities and whether we have provided the appropriate incentives to accomplish our compensation objectives. Our mix of compensation elements is designed to reward recent results and motivate long-term performance through a combination of cash and stock-based awards. We also seek to balance compensation elements that are based on financial, operational and strategic metrics with others that are based on the performance of Meridian shares via application of the personal multiplier component of cash bonuses for the Executive Chairman and the Chief Executive Officer. We believe the most important indicator of whether our compensation objectives are being met is our ability to motivate our NEOs to deliver superior performance and retain them to continue their careers with Meridian on a cost-effective basis.

Base Salary

The Company pays salaries that are designed to attract, motivate and retain experienced executives who will drive superior Company performance and maintain long-term shareholder value. The Compensation Committee considers recommendations from the Executive Chairman and Chief Executive Officer and approves annual base salaries that are commensurate with each NEO’s responsibilities and performance, as well as Company performance in the prior fiscal year, which are competitive with similar positions locally and in the industry. Salaries are set on a calendar year basis and therefore salaries paid in the first three months of each fiscal year beginning on the first day of October are set in the prior fiscal year.

For 2010, the Chief Executive Officer, Mr. Kraeutler, provided recommendations to the Compensation Committee for salary increases for the NEOs, other than himself and the

Executive Chairman, which were 4%, except for the Chief Financial Officer. The recommendation for the Chief Financial Officer was an increase of 12% as a result of her promotion to Executive Vice President and the additional responsibilities associated with this promotion. The Compensation Committee followed these recommendations. The Compensation Committee set the salary increase for the Executive Chairman and the Chief Executive Officer at 4% for each, based on its satisfaction with their leadership during a challenging economic environment around the world. Salary increase percentages for the NEOs were considered by the Compensation Committee to be consistent with the percentage increases provided in general to other Meridian employees.

Cash Bonuses

The Compensation Committee believes that employees should be rewarded based on Company results and individual performance. The Compensation Committee awards cash bonuses pursuant to the Officers’ Performance Compensation Plan, contingent upon Company performance. Cash bonuses, if earned, are paid in the first quarter of each fiscal year, for the prior year’s performance. Cash bonuses are subject to the Company’s attainment of a specific net income target. Should the Company fail to reach such net income target, no cash bonuses are paid.

Cash bonuses are also subject to the application of a personal achievement multiplier as recommended by management, except that no such recommendation is made by management for the Executive Chairman, Mr. Motto, or the Chief Executive Officer, Mr. Kraeutler. In evaluating the personal achievement multipliers, the Compensation Committee takes into consideration the sales and net earnings levels, sales and net earnings growth rates and achievement against plan, profit margins and improvements therein, and individual achievements and leadership of the NEOs. Instead of establishing specific quantifiable targets for each of these factors, the Compensation Committee exercises its discretion in using the factors to determine each NEO’s personal achievement multiplier. Specifically, the Compensation Committee does not establish measurable objective targets in connection with its deliberation of such factors. The adoption and application of such factors are intended to be discretionary and subjective so that the Compensation Committee can use its business judgment to provide an appropriate incentive and award for performance that sustains and enhances long-term shareholder value. The Compensation Committee believes that such discretionary and subjective components allow it to respond appropriately as business and strategic environments change and are appropriate for the size of the Company. The personal achievement multiplier choices are 0.5, 1.0, 1.25, 1.5 or 2.0. For example, a personal achievement multiplier of 1.25 would result in a bonus payout percentage of 37.5% when applied to a 30% base salary component.

Company Performance Component and 2009 Results

The 2009 Plan, which was similar in form to the plans utilized over the last several fiscal years, provided for the granting of cash bonuses as a percent of base salary if 2009 net earnings reached at least $36,050,000. Depending on the level of net earnings achieved and the application of the personal multiplier, cash bonuses could range from 5% to 120% of base salary. The 2009 Plan included six net earnings thresholds ranging from a low of

$36,050,000 to a high of $37,875,000. These six net earnings thresholds represented growth over 2008 net earnings ranging from a low of 19% to a high of 25%. The corresponding potential bonus payouts as a percent of base salary, before application of the personal multiplier, for the six net earnings thresholds ranged from a low of 10% to a high of 60%. Actual net earnings for 2009 were $32,759,000, a record for the Company and 8% growth over 2008. However, actual net earnings were below the minimum threshold, and therefore, there were no cash bonuses awarded to the NEOs for fiscal 2009 performance.

2010

At its November 12, 2009 meeting, the Compensation Committee approved the Officers’ Performance Compensation Plan for fiscal 2010. The 2010 Plan will award cash bonuses if 2010 net earnings reach at least $37,650,000, which the Compensation Committee believes is a meaningful increase from 2009 net earnings of $32,759,000. The 2010 Plan also provides for increasing bonus awards tied to increasing net earnings beyond the initial minimum level. Depending on the level of net earnings achieved and the application of the personal multiplier, cash bonuses could range from 5% to 120% of base salary, similar to the 2009 Plan discussed above.

Management and the Compensation Committee have intended that the earnings thresholds should be set at meaningful rates so that management must be diligent, focused and effective in order to achieve these goals. In other words, the Company and management believed at the time of the establishment of these thresholds that they would be challenging to achieve and would require substantial efforts from management. To this end, the Compensation Committee tends to set the thresholds consistent with the earnings guidance range requiring that the low end of guidance is achieved before bonuses are paid.

Long-term incentive awards

The Compensation Committee believes that equity-based compensation encourages employees to commit to the long-term goals of the Company. This ensures that the Company’s NEOs have a stake in the long-term creation of shareholder value. Historically, long-term incentive awards have been in the form of stock options. Beginning in fiscal 2008, the Compensation Committee moved towards a mix of stock options and restricted stock in order to provide NEOs with a mixed equity portfolio. Historically, in either case, the awards were performance-based, meaning the NEOs’ ability to vest in the awards was contingent upon the Company achieving a minimum level of net earnings.

For fiscal 2010, at its meeting on November 12, 2009, the Compensation Committee approved two types of restricted stock awards (or in the case of an NEO outside the US, restricted share units). The first type of restricted stock award is performance based, where the NEOs’ ability to vest in such awards is contingent upon the Company reaching a minimum level of net earnings of $39,000,000. This award would vest 25% per year over four years, if earned. The second type of restricted stock award is not performance based, but rather vests 100% after four years. The Compensation Committee believes that this latter award is appropriate to encourage retention of top management talent during what has been, in their belief, one of the most challenging economic environments over the last 20+ years.

The following table summarizes the restricted stock awards for the NEOs.

		No. of Shares of
		Performance-Based				No. of Shares of Time-
NEO		Restricted Stock				Vested Restricted Stock
Chief Executive Officer			5,000				5,000
Executive Vice President, Chief Financial Officer, and Secretary			3,750				3,750
Executive Chairman of the Board of Directors			5,000				5,000
Senior Vice President, President and Managing Director, MBE			3,750				3,750
Executive Vice President, President Meridian Life Science			3,750				3,750

Relative to fiscal 2009, on November 12, 2008, the Compensation Committee awarded each NEO 5,250 restricted shares of Common Stock (or in the case of an NEO outside the US, restricted share units). These restricted shares were forfeited because the minimum level of net earnings for fiscal 2009 was not achieved. These restricted shares are not reflected in the tables presented in this proxy statement.

Although Meridian does not have a written policy regarding the timing or practices related to granting equity awards, neither Meridian nor the Compensation Committee engages in spring-loading, back-dating or bullet-dodging practices. Stock options and restricted stock awards are generally granted at a regularly scheduled meeting of the Compensation Committee in the first quarter of the fiscal year, after Meridian issues a press release announcing the results of the prior fiscal year. Stock options are granted at the closing market price on the date of grant, pursuant to the 2004 Equity Compensation Plan. Prior to the exercise of an option, the holder has no rights as a stockholder with respect to the shares subject to such option, including no rights to vote or to receive dividends. Prior to vesting of restricted shares, the holder has voting rights and will receive any dividends declared on Meridian’s Common Stock.

Company-Sponsored Benefit and Retirement Plans

Meridian provides Company-sponsored benefit and retirement plans to the NEOs. In general, executives participate in the Company’s benefit and retirement plans on the same basis as other Company employees. The core benefit package includes health, dental, short and long-term disability, and group term life insurance. Meridian generally provides retirement benefits to executives through qualified (under the Internal Revenue Code) defined contribution plans.

In 1995, the Company entered into a salary continuation agreement with John A. Kraeutler to supplement Mr. Kraeutler’s retirement savings. This agreement was amended on December 29, 2008 to comply with the requirements of Section 409A of the Internal Revenue Code. This agreement provides additional compensation after retirement or separation from the Company under certain circumstances and is funded by a life insurance policy with premiums paid by the Company. Meridian incurred expense of $23,780 in premiums during fiscal 2009.

Other Personal Benefits

Allowances for automobiles and professional, financial, and tax planning are made available to Meridian’s NEOs and other corporate officers. The costs to the Company are included in the All Other Compensation Tables on page 23. The Company believes these perquisites to be reasonable, comparable to peer companies, and consistent with the Company’s overall executive compensation philosophy.

Internal Pay Equity

The Compensation Committee believes that the relative difference between the Chief Executive Officer’s compensation and the compensation of the Company’s other executives has not increased significantly over the years. Further, the Compensation Committee believes that the Company’s internal pay equity structure is consistent with our peer group and is appropriate based upon the contributions to the success of the Company and as a means of motivation to other executives and employees.

Tax Deductibility of Pay

Section 162(m) of the Internal Revenue Code contains compensation deduction limitations for certain highly compensated employees. One exception to this limitation is for performance-based compensation that is approved by, among other things, a committee of “outside directors” (as defined under IRS treasury regulations). The Committee believes that all compensation paid to the NEOs for fiscal year 2009 is properly deductible under Section 162(m), but no assurance can be made in this regard.

Actions of the Committee

In several meetings during the year, the Executive Chairman, Mr. Motto, the Chief Executive Officer, Mr. Kraeutler, and the Compensation Committee Chairman discussed, among other things, Meridian’s compensation system and its effectiveness in attracting and retaining top notch employees. These individuals believe that the system, including the Officers’ Performance Compensation Plan, is understood by employees and shareholders and has worked well in practice. They noted that the underlying principles in this Plan have been followed for many years, even when following such principles resulted in no bonuses being awarded (2001 and 2009) and performance-based stock awards being forfeited (2001, 2008 and 2009). The Committee discussed on a number of occasions the advisability of engaging a compensation consultant. The Compensation Committee concluded that it did not want to engage a compensation consultant this year, in part because of the relatively small number of

executive officers and their frequent interaction.

At its November 12, 2008 meeting, the Compensation Committee discussed these matters, both with and without the presence of management. The Compensation Committee discussed the recommendations of the Executive Chairman and the Chief Executive Officer for compensation levels for all officers and answered questions about individual recommendations and the general pay increases to be paid throughout the Company. The Committee then made the compensation decisions, which are reflected in the figures presented in this proxy statement.

SUMMARY COMPENSATION TABLE

The following table summarizes the aggregate compensation paid, or earned, by each of the NEOs for the fiscal years ended September 30, 2009, 2008, and 2007 respectively.

																										Change in
																										Pension Value
																										and
																										Nonqualified
																						Non-Equity				Deferred
Name and Principal																		Option				Incentive Plan				Compensation				All Other
Position		Year				Salary				Bonus1				Stock Awards				Awards2				Compensation				Earnings				Compensation3
(a)		(b)				(c)				(d)				(e)				(f)				(g)				(h)				(i)				Total
John A. Kraeutler			2009			$	511,538			$	—							$	—											$	37,767			$	549,305
Chief Executive Officer			2008			$	450,579			$	178,125			$	—			$	145,096			$	—			$	—			$	41,821			$	815,621
			2007			$	391,928			$	300,005							$	133,239											$	42,925			$	868,097
Melissa A. Lueke Executive Vice President,			2009			$	210,736			$	—							$	39,511											$	25,588			$	275,835
Chief Financial Officer,			2008			$	202,126			$	76,782			$	—			$	68,835			$	—			$	—			$	21,401			$	369,144
and Secretary			2007			$	192,283			$	146,251							$	87,761											$	20,878			$	447,173
William J. Motto			2009			$	524,999			$	—							$	—											$	87,816			$	612,815
Executive Chairman of the			2008			$	519,615			$	196,875			$	—			$	14,109			$	—			$	—			$	87,189			$	817,788
Board of Directors			2007			$	494,904			$	378,750							$	132,407											$	91,077			$	1,097,138
Antonio A. Interno4 Senior Vice President,			2009			$	382,370			$	—							$	—											$	47,854			$	430,224
President and Managing			2008			$	414,605			$	124,607			$	—			$	7,029			$	—			$	—			$	47,241			$	593,482
Director, MBE			2007			$	353,575			$	220,983							$	125,345											$	42,476			$	742,379
Richard L. Eberly Executive Vice President,			2009			$	270,032			$	—							$	39,512											$	27,039			$	336,583
President Meridian Life			2008			$	259,373			$	39,313			$	—			$	68,835			$	—			$	—			$	25,226			$	392,747
Science			2007			$	250,121			$	142,380							$	87,761											$	28,097			$	508,359

Fiscal 2009
		John A.				Melissa A.				William J.				Antonio A.				Richard L.
		Kraeutler				Lueke				Motto				Interno				Eberly
Retirement Contributions		$	13,082			$	13,082			$	13,082			$	17,412			$	13,082
Auto Lease / Auto Allowance			16,642				7,500				14,052				27,029				9,794
Financial and Tax Planning			4,630				1,593				57,269				—				750
Restricted Stock Dividends			3,413				3,413				3,413				3,413				3,413
Totals		$	37,767			$	25,588			$	87,816			$	47,854			$	27,039

GRANTS OF PLAN-BASED AWARDS³

There were no grants of plan-based awards earned during fiscal 2009. No expense is shown related to restricted shares issued November 12, 2008. Because the required earnings target for Meridian was not reached for fiscal 2009, the restricted shares were cancelled.

Outstanding Equity Awards at Fiscal Year-End

The following table provides information on the current holdings of stock option awards by the NEOs under Meridian’s 2004 Equity Compensation Plan and the 1996 Stock Option Plan. The columns related to stock awards have been deleted because there are no outstanding stock awards held by any of the NEOs. There were no grants of plan-based award earned during fiscal 2009. No expense is shown related to restricted shares issued November 12, 2008. Because the required earnings target for Meridian was not reached for fiscal 2009, the restricted shares were cancelled.

Under the Company’s stock option plans, general stock option awards have a ten-year term and vest in four equal annual installments from the date of grant. The Company’s performance-based options that have been earned to date, vest in three equal annual installments, beginning on the date of the earnings release indicating that performance targets were met for the period.

										Equity
										Incentive
										Plan
										Awards:
		Number of				Number of				Number of
		Securities				Securities				Securities
		Underlying				Underlying				Underlying
		Unexercised				Unexercised				Unexercised				Option								Option
		Option(#)				Option(#)				Unearned				Exercise Price				Option Grant				Expiration
Name		Exercisable				Unexercisable				Options (#)				($)				Date				Date
John A. Kraeutler			—				123,751	3			—			$	2.090				10/01/2001				09/30/2011
			5,250	2			—				—			$	4.525				12/02/2003				12/02/2013
			10,500	2			—				—			$	7.280				12/07/2004				12/07/2014
			15,750	2			—				—			$	14.007				11/10/2005				11/10/2015
			10,500	2			5,250	2			—			$	16.554				11/15/2006				11/15/2016
			—				25,000	4			—			$	33.090				01/28/2008				01/28/2018
			—				25,000	5			—			$	33.090				01/28/2008				01/28/2018
Melissa A. Lueke			—				22,500	3			—			$	2.090				10/01/2001				09/30/2011
			5,250	2			—				—			$	4.525				12/02/2003				12/02/2013
			10,500	2			—				—			$	7.280				12/07/2004				12/07/2014
			15,750	2			—				—			$	14.007				11/10/2005				11/10/2015
			10,500	2			5,250	2			—			$	16.554				11/15/2006				11/15/2016
William J. Motto			—				113,063	3			—			$	2.090				10/01/2001				09/30/2011
			7,988	1			—				—			$	2.800				11/19/2002				11/19/2012
			15,750	2			—				—			$	4.525				12/02/2003				12/02/2013
			15,750	2			—				—			$	7.280				12/07/2004				12/07/2014
			15,750	2			—				—			$	14.007				11/10/2005				11/10/2015
			10,500	2			5,250	2			—			$	16.554				11/15/2006				11/15/2016
Antonio A. Interno			—				22,500	3			—			$	2.090				10/01/2001				09/30/2011
			10,500	2			—				—			$	14.007				11/10/2005				11/10/2015
			10,500	2			5,250	2			—			$	16.554				11/15/2006				11/15/2016
Richard L. Eberly			—				22,500	3			—			$	2.090				10/01/2001				09/30/2011
			5,250	2			—				—			$	7.280				12/07/2004				12/07/2014
			10,500	2			—				—			$	14.007				11/10/2005				11/10/2015
			10,500	2			5,250	2			—			$	16.554				11/15/2006				11/15/2016

OPTION EXERCISES AND STOCK VESTED

Option Awards

Stock Awards

Number of

Number of

Shares

Value Realized

Shares

Value

Acquired on

on Exercise ($)

Acquired on

Realized On

Name

Exercise (#)

(1)

Vesting (#)

Vesting ($)

(a)

(b)

(c)

(d)

(e)

John A. Kraeutler

63,675

$

1,149,686

—

$

—

Antonio A. Interno

5,250

$

91,350

—

$

—

¹         Amounts reflect the difference between the exercise price of the option and the market price at the time of exercise.

NONQUALIFIED DEFERRED COMPENSATION

The following table sets forth, for each of the NEOs, certain information concerning nonqualified deferred compensation for fiscal 2009.

										Aggregate
		Executive				Registrant				Earnings				Aggregate				Aggregate
		Contributions				Contributions				during FY				Withdrawals /				Balance at
Name		during FY 2009				during FY 2009				2009				Distributions				09/30/2009
John A. Kraeutler			—				23,780				(4,198	)			—				180,789
Melissa A. Lueke			—				—				—				—				—
William J. Motto			—				—				—				—				—
Antonio A. Interno			—				—				—				—				—
Richard L. Eberly			—				—				—				—				—

Our 401(k) Savings Plan (“401(k) Plan”) allows all US employees of the Company as of the first day of their employment to set aside a portion of their compensation each year for their retirement needs up to the limits set by the Internal Revenue Code. The Company contributes a matching contribution of 100% of the first 3% of the employee’s contribution (i.e. up to 3% of an employee’s salary) subject to Internal Revenue Code limitations. The Company may also contribute a profit-sharing contribution at its discretion. Employee contributions are 100% vested immediately, while Company contributions are subject to a graded vesting schedule of 20% per year for 5 years. Participants are entitled to direct the investment of their accounts among various mutual funds selected by the Company’s Fiduciary Committee. The Plan also provides that Company discretionary profit sharing contributions may be invested in Company stock. Participants who terminate employment are entitled to receive the vested portion of their accounts.

Antonio A. Interno, Senior Vice President, President and Managing Director of our European operations, is a non-US employee. Mr. Interno receives a profit sharing allocation that is commensurate with amounts received by executive officers who are US employees and participate in our 401(k) Plan. Mr. Interno also receives retirement contributions based on amounts contributed by Meridian Bioscience Europe srl pursuant to the Italian government pension system, INPS. The amount of such contribution was $11,680 for fiscal 2009.

A salary continuation agreement with John A. Kraeutler allows the Company to contribute amounts above the IRS limit. This agreement provides additional compensation after retirement or separation from the Company under certain circumstances and is funded by a life insurance policy with premiums paid by the Company.

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL

In the case of a disability, Meridian is obligated to pay Mr. William J. Motto 60% of his total annual salary and bonus for a period of up to 60 months. In the case of death, Meridian is obligated to pay to Mr. Motto’s designated beneficiaries up to $1 million. These benefits are to be reduced by the gross amount of any life insurance payments or disability insurance payments made to Mr. Motto, or his beneficiaries as the case may be, under any insurance policy or program maintained by Meridian, other than group term life insurance programs maintained for all employees.

Mr. Kraeutler and Meridian are parties to an employment agreement dated December 29, 2008, which sets forth compensation, non-competition, benefit and severance provisions and provides for a payment equal to three times Mr. Kraeutler’s base salary (plus any salary earned but not paid) and 3-year average annual performance bonus if Mr. Kraeutler is terminated by Meridian without cause, Mr. Kraeutler terminates his employment for good reason or upon a change in control of Meridian. In the case of disability, Meridian is obligated to pay Mr. Kraeutler 100% of his base and performance compensation, averaged from the three preceding fiscal years, until age 65. This agreement was effective for a period of 36 months commencing December 29, 2008, automatically extending each day for additional 36-month periods until either party terminates the agreement. This agreement amended an earlier agreement, dated February 15, 2001, to comply with Section 409A and is similar in substance to the pre-existing agreement.

Had a change in control occurred on September 30, 2009, Mr. Kraeutler would have been entitled to the following under the agreement:

Salary		$	1,354,046
Annual Performance Bonus			478,130
Total Payment		$	1,832,176

DIRECTOR COMPENSATION

For 2009, non-employee directors of Meridian receive $30,000 per year for serving as directors and as members of committees of the Board. They also receive $1,500 for each meeting of the Board and $1,000 for each committee meeting attended. They receive $750 for each Board meeting and $500 for each committee meeting held by telephone. The Audit Committee Chairman receives an additional $8,000 annually and the Compensation Committee Chairman receives an additional $3,000 annually. The Board Secretary receives an additional $1,000 for serving at each meeting of a committee of which he is not a member. In accordance with the terms and conditions set forth in the Company’s 2004 Equity Compensation Plan, each non-employee director is also granted a non-qualified option to

purchase 7,500 common shares at the time of election or re-election to the Board of Directors, with the exercise price being the closing sale price on Nasdaq reported on the date of grant. Directors who are employees of Meridian are not separately compensated for serving as directors.

The following table provides information on compensation related to fiscal 2009 for non-employee directors who served during fiscal 2009.

		Fees																Change in
		Earned																Pension Value
		or												Non-Equity				and Nonqualified
		Paid in				Stock				Option				Incentive Plan				Deferred				All Other
		Cash				Awards				Awards				Compensation				Compensation				Compensation				Total
Name (1)		($)				($)				($)1				($)				Earnings				($)				($)
(a)		(b)				(c)				(d)				(e)				(f)				(g)				(h)
James M. Anderson		$	7,500				—			$	36,001				—				—				—			$	43,501
James A. Buzard		$	46,500				—			$	84,240				—				—				—			$	130,740
Gary P. Kreider		$	51,500				—			$	84,240				—				—				—			$	135,740
David C. Phillips		$	54,500				—			$	84,240				—				—				—			$	138,740
Robert J. Ready		$	46,500				—			$	84,240				—				—				—			$	130,740

SHAREHOLDER PROPOSALS FOR NEXT YEAR

The deadline for shareholder proposals to be included in the proxy statement for next year’s meeting is August 12, 2010.

The form of Proxy for this meeting grants authority to the designated proxies to vote in their discretion on any matters that come before the meeting except those set forth in Meridian’s proxy statement and except for matters as to which adequate notice is received. In order for a notice to be deemed adequate for the 2011 Annual Shareholders’ Meeting, it must be received prior to October 27, 2010. If there is a change in the anticipated date of next year’s Annual Shareholders’ Meeting or these deadlines by more than 30 days, we will notify you of this change through our Form 8-K and/or Form 10-Q filings.

Meridian’s Code of Regulations provides that only persons nominated by an officer, director or in writing by a shareholder not earlier than 150 days nor later than 90 days prior to the meeting at which directors are to be selected shall be eligible for election and that shareholder proposals be presented not earlier than 150 days nor later than 90 days prior to the meeting at which the proposals are to be presented.

QUESTIONS?

If you have questions or need more information about the annual meeting, write to:

Melissa Lueke, Executive Vice President, Chief Financial Officer and Secretary
Meridian Bioscience, Inc.
3471 River Hills Drive
Cincinnati, Ohio 45244
or call us at (513) 271-3700.

For information about your record holdings call the Computershare Shareholder Services at (888) 294-8217.

MERIDIAN BIOSCIENCE, INC. 3471 RIVER HILLS DRIVE CINCINNATI, OH 45244		VOTE BY INTERNET - www.proxyvote.com Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.   ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.   VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions.   VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:		M18506-P85082		KEEP THIS PORTION FOR YOUR RECORDS
				DETACH AND RETURN THIS PORTION ONLY

 

 

 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.

M18507-P85082