Document:

exv10w19

 

Exhibit 10.19

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

CONSULTING SERVICES AGREEMENT

     This Recruiting Services Agreement (“Agreement”) is made effective the 1st day of
March 2006, by and between EMERGENT BIOSOLUTIONS INC., with offices at 300 Professional Drive,
Gaithersburg, Maryland 20879 (“EMERGENT”), and The Hauer Group with offices at 7850 Southdown Road,
Alexandria, VA 22308 (“Consultant”) (sometimes referred to in the singular as “Party” and
collectively as the “Parties”).

     WHEREAS, EMERGENT is engaged in the production and sale of biopharmaceutical products; and

     WHEREAS, Consultant is engaged in the business of providing consulting services as described
in this Agreement; and

     WHEREAS, EMERGENT desires to engage Consultant directly to provide the services described in
this Agreement and Consultant desires to be so engaged.

     NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending
to be bound, agree as follows:

     1. Engagement. EMERGENT hereby engages Consultant to provide the services specified below as
and when requested by EMERGENT, under the terms and conditions of this Agreement and Consultant
hereby accepts the engagement to perform such services under such terms and conditions. Without
limiting the generality of the foregoing, Consultant shall provide those services as are described
more fully in the Scope of Work attached hereto as Exhibit A (the “Services”).

     2. Payment for Services. In payment for the Services, EMERGENT shall pay Consultant as
described in the Scope of Work attached hereto as Exhibit A. Invoices for payment shall be
submitted to EMERGENT in the month following the month in which the Services are satisfactorily
rendered, with such supporting documentation as is acceptable to EMERGENT in its reasonable
discretion. In order for invoices to be processed and paid, they must refer to the EMERGENT
Accounting Code designated in the Scope of Work attached hereto as Exhibit A. Such
payments shall be in full compensation for the Services performed by Consultant unless expressly
agreed otherwise in writing by the Parties. Invoices shall be payable within thirty (30) days of
receipt by EMERGENT. In the capacity as an independent contractor, representatives of Consultant
performing Services hereunder will not receive employee benefits from EMERGENT, including but not
limited to paid vacation, sick leave or any insurance benefits, even if such representatives are
physically situated at EMERGENT’s offices.

     3. Expenses. EMERGENT shall pay for or reimburse Consultant for its out of pocket expenses
reasonably incurred in the performance of Services hereunder; provided, however, that expenses
shall only be paid for or reimbursed if in compliance with EMERGENT’s Travel Policy (attached as
Exhibit B) or otherwise expressly authorized in Exhibit A or otherwise in writing
by EMERGENT. Consultant shall submit monthly invoices detailing expenses incurred during the
immediately preceding month by appropriate category and

 

 

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shall provide supporting documentation as is acceptable to EMERGENT in its reasonable
discretion. It is agreed that expenses shall not be marked up. This Agreement relates to the
provision of Services only. In the event Consultant deems it necessary to purchase equipment,
goods, software or other tangible or intangible property for which he will seek reimbursement from
EMERGENT, no such purchase shall be made and EMERGENT shall not be responsible for reimbursement to
Consultant unless Consultant has received EMERGENT’s express, prior written authorization.

     4. Confidentiality of Information. Consultant acknowledges that this Agreement creates a
confidential relationship between Consultant and EMERGENT. Consultant and EMERGENT acknowledge
that, in order to perform the Services, it will be necessary for EMERGENT to allow Consultant to
have access to certain commercially valuable, proprietary, and confidential information of EMERGENT
and its affiliates. Consultant agrees to keep confidential and not, without the prior written
consent of EMERGENT, to publish, disclose to any third party or use (except for purposes of
performance under this Agreement) any confidential information, in either written, electronic or
oral form whether or not marked as “confidential” or “proprietary”, and without limitation, any and
all information relating to the business, prospective business, technical processes, finances,
price lists, customer lists, information relating to the licensing or approval of any of the
products, business plans, business prospects, employee information, information regarding
facilities, operations and financial condition and results, inventions, improvements, trade
secrets, know-how, processes, formulas, methods, assays, data, instrumentation, sales and marketing
information, standard operating procedures, clinical trials, clinical trial data, clinical
specimens, study protocols, investigators’ brochures and instructions or other scientific or
technical information, and any documentation and materials specifically developed or prepared for
or by Consultant in performance of Services under this Agreement (collectively, the “Confidential
Information”). The obligations of this paragraph do not pertain to information which is generally
known or hereafter becomes generally known to the public through no fault of Consultant or is
disclosed by Consultant with the written approval of EMERGENT. Consultant shall return all such
Confidential Information to EMERGENT upon completion of the Services hereunder or upon EMERGENT’s
request.

If confidential information is sought by any source, including any governmental organization,
Consultant must immediately notify EMERGENT of such request and refuse to divulge any such
information at least until a representative of EMERGENT is permitted to address the situation and,
either consents to the disclosure or has the opportunity to engage legal means to protect the
disclosure of such information.

     5. Authorized Contacts. With respect to the performance of Services, Consultant shall report
to Daniel Abdun-Nabi, Senior Vice President, Legal & Corporate Affairs (or such other person that
may hold the same position at a later date) or such other person(s) as he may designate from time
to time in writing.

     6. Reports. Consultant shall make weekly reports together with such reports as EMERGENT may
from time to time request.

 

 

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     7. Ownership of Work. All right, title, and interest in and to all information which relate to
Services provided under this Agreement, shall belong to and be the property of EMERGENT. Consultant
agrees, without further payment by EMERGENT, to make any assignments and execute documents as are
necessary to effect EMERGENT’s title thereto in all countries of the world. Furthermore, all
documents and materials prepared by Consultant in the performance of its duties hereunder will
constitute works-made-for-hire and shall belong to and be the exclusive property of EMERGENT and
shall be surrendered by Consultant to EMERGENT upon request at the termination of this Agreement.
Consultant hereby assigns to EMERGENT all rights of copyrights that Consultant has to such
documents and materials referred to in this paragraph.

     8. Term and Termination.

     (a) This Agreement shall become effective as of the date set forth above and shall continue in
effect until March 31, 2007 (the “Term”) or until this Agreement otherwise terminates under this
Section 8.

     (b) This Agreement shall terminate upon the expiration of the Term or the first to occur of
the following events:

	 	(i)	 	On the date EMERGENT provides Consultant with written notice
(setting out with particularity) that this Agreement is being terminated for
“cause”. For purposes of this Agreement, Consultant shall be deemed terminated
for cause if EMERGENT terminates Consultant after Consultant:

	 	(a)	 	shall have committed any act or acts of
embezzlement, theft or fraud against EMERGENT;
	 
	 	(b)	 	shall have been convicted of a felony or any
crime involving moral turpitude, whether or not related to Consultant’
Services;
	 
	 	(c)	 	shall have committed any act or acts of gross
negligence or willful misconduct; or
	 
	 	(d)	 	shall have committed a breach of the
representations, warranties or covenants contained in Sections 4, 7, 9,
11 or 14 herein.

	 	(ii)	 	On the date EMERGENT terminates Consultant’s Services for
convenience on not less than ten (10) days prior written notice.
	 
	 	(iii)	 	On the date Consultant terminates the Services for any reason,
provided that Consultant shall give EMERGENT ten (10) days prior written
notice.

     (c) Upon termination of this Agreement, EMERGENT shall have no further liability other than
for payment in accordance with the terms of this Agreement for Services provided prior to the
termination date. If this Agreement is terminated by EMERGENT under Section 8(b)(i)(d), in
addition to any other rights or remedies available at law or in equity, Consultant

 

 

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will surrender any claim for payment under the Agreement and will refund any payments received
under this Agreement.

     (d) The provisions of Sections 2, 3, 4, 7, 8, 11(c) (only for twelve months following
termination or expiration), 12, 13, 14, and 16 shall survive the expiration or termination of this
Agreement for any reason.

     9. Representations and Warranties Consultant represents and warrants that:

     (a) the Services performed hereunder will be performed in a competent, diligent and
workmanlike manner consistent with the highest standards of professional conduct;

     (b) all of its personnel that will perform the Services for EMERGENT hereunder shall have been
screened for, and shown to be free of, any prior use of illegal drugs or other controlled
substances and have been subjected to detailed background checks and shown to be free of any
criminal record, other than minor traffic violations and otherwise meet the requirements set form
in EXHIBIT C;

     (c) all of its personnel that will perform the Services for EMERGENT hereunder shall be
advised of the restrictions and obligations set forth in this Agreement, including without
limitation, the requirements of confidentiality (Section 4), compliance with laws (Section 11) and
non-solicitation (Section 14); and

     (d) it has full power to enter into and fully perform this Agreement and has the full and
unrestricted right to disclose to EMERGENT any information Consultant makes available to EMERGENT
under this Agreement.

     10. Relationship of Parties. With respect to the subject matter of this Agreement, the Parties
are and remain independent contractors. This Agreement shall not be deemed to create an
employer/employee relationship, joint venture, partnership, association, or agency between the
Parties. Consultant is not authorized to incur or create any obligation express or implied on
behalf of EMERGENT or to bind EMERGENT in any manner whatsoever.

     11. Compliance with Laws. In performing the Services, Consultant shall comply with all
applicable existing and future laws, rules and regulations. Consultant covenants and agrees to
perform its duties and responsibilities under this Agreement in accordance with the highest
standards of ethical business conduct and will not engage in any acts or activities that are
illegal or that may adversely affect or reflect upon the business, integrity or goodwill of
EMERGENT. Without limiting the generality of the foregoing, Consultant represents, warrants and
agrees that:

     (a) Consultant will comply with all applicable existing and future international, federal,
state and local laws, rules and regulations, including but not limited to those governing
employment practices (including those governing employee recruiting and hiring), anti-bribery and
anti-gratuities laws or other similar laws.

 

 

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     (b) Consultant will comply with all EMERGENT stated policies and procedures applicable to
employees operating at EMERGENT’s offices, including without limitation, those governing safety,
health, harassment, and discrimination.

     (c) At such times as may be requested by EMERGENT, Consultant will certify to EMERGENT in
writing that (1) Consultant has complied with all applicable laws, regulations, and EMERGENT’s
policies and procedures; (2) Consultant does not know or have any reason to believe that any
employee, agent, representative or other person retained by Consultant has violated any of the
foregoing undertakings; and (3) Consultant will immediately advise EMERGENT if Consultant should
learn or have reason to believe that there has been a violation of any of the foregoing
undertakings.

     (d) In the event that EMERGENT becomes a publicly traded company on the New York Stock
Exchange or NASDAQ, Consultant represents that he may have access to certain material nonpublic
information of EMERGENT and will not disclose such information to any third parties as outlined in
the Security Exchange Commission (“SEC”) regulations. Consultant acknowledges that violation of
this provision is called insider trading and is in violation of the SEC laws. “Insider trading” is
defined as the purchasing or selling of securities of a company while in the possession of material
information that has not been generally disclosed in the marketplace.

     12. Indemnification. Consultant shall hold harmless and indemnify EMERGENT, its employees,
agents and representatives, from and against any and all suits, demands, losses, damages,
judgments, claims, costs, (including reasonable attorneys’ fees and costs) or other liability
(including, without limitation personal injury or death) (collectively “Liability”), to the extent
that such Liability arises from or is related to the performance of Services under this Agreement
or the negligence, act or omission of Consultant or any of its agents or representatives.

     13. Arbitration. All disputes or claims arising under this Agreement which cannot be settled
amicably shall be finally resolved by binding arbitration in Bethesda, Maryland before a single
arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association
then in effect, and any judgment or arbitral award thereon may be entered and enforced in any court
of competent jurisdiction. Each Party shall bear its own costs of arbitration or litigation
thereon, including attorneys’ fees.

     14. Non-Solicitation. Consultant agrees that, during the term of this Agreement, and for a
period of twelve (12) consecutive months after termination of such Agreement, Consultant will not
knowingly (i) directly induce or attempt to induce or otherwise counsel, advise, solicit or
encourage any employee to leave the employ of EMERGENT or accept employment with Consultant or any
other person or entity, (ii) directly induce or attempt to induce or otherwise counsel, advise,
solicit or encourage any person who at the time of such inducement, counseling, advice,
solicitation or encouragement had left the employ of EMERGENT within the previous six (6) months to
accept employment with any person or entity besides EMERGENT or (iii) solicit, interfere with, or
endeavor to cause any customer, client, or business partner of EMERGENT to cease or reduce its
relationship with EMERGENT or induce or attempt to

 

 

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induce any such customer, client, or business partner to breach any agreement that such customer,
client, or business partner may have with EMERGENT.

     15. Force Majeure. Neither Party shall be liable for delay or failure in the performance of
any of its obligations under this Agreement if and to the extent such delay or failure is due to
circumstances beyond the reasonable control of such Party, including but not limited to fires,
floods, explosions, accidents, acts of God, war, riot, strike, lockout or other concerted acts of
workers, acts of government and shortages of materials. The Party claiming force majeure shall use
its best efforts to eliminate or prevent the cause so as to continue performing its obligations
under this Agreement. During such time that the event of force majeure causes such a delay or
failure of performance, this Agreement and the Parties’ obligations and responsibilities under it
shall be deemed suspended until the event of force majeure ceases.

     16. Miscellaneous Provisions.

     (a) Governing Law. This Agreement and its interpretation shall be governed by the
laws of the State of Delaware, USA without reference to its conflict of law or choice of law
provisions.

     (b) Non-Waiver. No delay by or omission of any Party in exercising any right, power,
privilege, or remedy shall impair such right, power, privilege, or remedy or be construed as a
waiver thereof.

     (c) Remedies. The rights and remedies provided in this Agreement are cumulative and
are not exclusive of other rights or remedies provided by law. Consultant acknowledges that the
injury to EMERGENT resulting from any violation by Consultant of any of the covenants contained in
this Agreement shall be of such a character that EMERGENT cannot be adequately compensated by money
damages and, accordingly, EMERGENT may, in addition to pursuing its other remedies, obtain an
injunction from any such violation; and no bond or other security shall be required in connection
with such injunction.

     (d) Taxes. Consultant shall be fully responsible for payment of all state and federal
income taxes, social security taxes, and for any other taxes or payment which may be due and owing
by Consultant as the result of fees or amounts paid to it by EMERGENT under this Agreement, and
Consultant shall indemnify and hold harmless EMERGENT from and against any such tax or payment.

     (e) Notices. Any notice hereunder shall be given by first class or express mail, or
by facsimile followed by confirmation, addressed to the Parties at the addresses given in the
preamble of this Agreement, or to such other address as a Party may later designate in writing to
the other Party. Notice given by Consultant to EMERGENT shall be directed to the Vice President,
Legal Affairs. Notice given by EMERGENT to Consultant shall be directed to the President of
Consultant.

 

 

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     (f) Use of Name. Neither Party shall use the name, tradename or trademark of the
other Party in a press release, advertising, publicity or promotional activity without the prior
written consent of the other Party.

     (g) Severability. In the event that any section or any part of a section of this
Agreement should be declared void, invalid, or unenforceable by any court of law, for any reason,
such a determination shall not render void, invalid, or unenforceable any other section or any part
of any other section of this Agreement and the remainder of this Agreement shall remain in full
force and effect.

     (h) Headings. Headings and titles of parts and sections are for convenience only and
have no interpretative significance.

     (i) Successors. This Agreement and the covenants hereof are binding on the Parties
and their respective heirs, executors, representatives, trustees, permitted assigns, and successors
in interest.

     (j) Assignability. As this is a personal service contract, this Agreement may not be
assigned by Consultant without the prior, express written consent of EMERGENT. This Agreement may
not be assigned by EMERGENT without the prior, express written consent of Consultant; provided,
however, that this Agreement may, without Consultant’ written consent, be assigned and transferred
to any affiliate of EMERGENT upon such assignee assuming EMERGENT’s obligations hereunder, in which
event Consultant agrees to continue to perform the duties and obligations according to the terms
hereof to or for such assignee or transferee of this Agreement.

     (k) Counterparts. This Agreement may be signed in two identical copies, each of which
shall be deemed to be an original copy, and a facsimile copy shall constitute a legally binding,
enforceable document.

     (l) Integration. This Agreement along with the corresponding Scope of Work
constitutes the entire agreement of the Parties, supercedes all prior discussions, negotiations and
understandings verbal and written, if any, and may only be amended or modified by a written
agreement signed by both Parties. In the event of a conflict between the terms of this Agreement
and the terms of any Exhibit or attachment hereto, an EMERGENT purchase order or any Consultant
documentation, the terms of this Agreement shall prevail.

(Remainder of page intentionally left blank. Signature page to follow)

 

 

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     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date set forth in
the preamble.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	EMERGENT BIOSOLUTIONS INC.	 	THE HAUER GROUP	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Daniel J. Abdun-Nabi
	 	By
	 	/s/ Traci Brown-Hauer	 	 
	 

	 	 
	 	 	 	 	 	 
	Printed Name: Daniel J. Abdun-Nabi	 	Printed Name:	 	 
	Title: Senior Vice President

          Legal and Corporate Affairs

          and General Counsel
	 	Title: President
	 	 

 

 

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EXHIBIT A

Scope of Work and Compensation

The Services shall include, without limitation, the following in which Consultant will:

Contract Objective:

To assist Emergent BioSolutions to expand opportunities for BioThrax and its pipeline product
candidates.

Summary of expected activities:

Strategic Support of Corporate Objectives

	•	 	Consultation to CEO and Senior Management on corporate strategic issues
	 
	•	 	General consultation and directed project support to Marketing and Communications Group in the area of public relations
including but not limited to:

	 	 	 	ÞRelationship management with targeted media outlets and reporters
	 
	 	 	 	ÞIntroductions to relevant government officials
	 
	 	 	 	ÞIntroductions to potential commercial partners

	•	 	Other projects as may be directed by the CEO and Senior Management

Domestic Marketing

	•	 	Target audiences:

	 	 	 	Þ Senior Leadership and Decision Makers in First Responders Communities in Major
Cities in the US (see list below of target cities). [**]

	 
	 	 	 	Þ Senior Leadership and Decision Makers in Health Departments in major cities in the
US to help support decision makers in the first responder community when making a
medical decision surrounding the use of BioThrax,

	•	 	Specific activities targeted at these markets include the following:

	 	 	 	Þ Contacting individuals within the target audiences, prioritizing and arranging
initial meetings/teleconferences with senior leadership and decision makers within the
first responder and health department community

	 
	 	 	 	Þ As needed and appropriate, attend meetings with member of the sales and marketing
team when meeting with these key officials.

	 
	 	 	 	Þ Provide input and information on senior leadership and decision makers prior to
meetings to ensure meeting materials are appropriate and targeted for the individuals

	 
	 		 	Þ 2 to 4 meetings will be arranged per month with target audiences within the target
geographic areas.

	•	 	Target Cities/Metro Areas (based on geography)

	 	 	 	Þ [**]

 

 

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	 	 	 	Þ [**]

All Services shall be performed on-site at EMERGENT’s offices (as specified in the preamble to
this Agreement), unless otherwise directed by EMERGENT.

Compensation: In exchange for the services provided above, EMERGENT shall compensate
Consultant at the rate of $15,000.00 per month.

Agreement Start Date: March 1, 2006

Agreement End Date: March 1, 2007 (unless extended by mutual agreement)

Travel: Parties agree that Consultant may book his own air travel for reservations in
business class longer than 2.5 hours of flight time. All other travel will be pursuant to
Emergent’s Travel Policy (attached as Exhibit B) and all necessary lodging, rental car and
other travel reservations shall be made by a Emergent Administrative Assistant and MAY NOT be made
directly by Consultant. Emergent will not reimburse for expenses that fail to comply with this
process. If airline, lodging, rental car or other travel reservations are to be made in
connection with Services provided under this Agreement, it is Consultant’s responsibility to
contact the Emergent Authorized Contact identified in Section 5 of this Agreement to request that
such arrangements be made.

 

 

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EXHIBIT B

Travel Policy

 

 

EMERGENT BIOSOLUTIONS INC.

TRAVEL POLICY AND GUIDELINES

FOR NON-EMPLOYEES

The following guidelines apply to Emergent consultants, contractors and other
Non-Employees (hereinafter “Non-Employees) seeking payment for or reimbursement of travel
expenses. Failure to comply with this policy may result in non-reimbursement of expenses
or a delay in reimbursement. Questions regarding this Policy or any travel matter should
be directed to the Emergent Travel Administrator, Dee Weller at 301 944 0166.

 

 

1. TRAVEL APPROVAL 

Authorization to travel must be obtained from Emergent Travel Administrator prior to each
trip. Authorization to make changes to any existing travel arrangements must be
obtained from the Emergent Travel Administrator prior to making the change.

2. AIRLINE, HOTEL AND TRAVEL ARRANGEMENTS 

Except as noted below, all necessary airline, railroad, lodging, rental car and other travel
reservations shall be made by the relevant Emergent Administrative Assistant and may not be
made directly by the Non-Employee. Any exception to this requires the approval of the CFO.
Emergent will not reimburse for expenses that fail to comply with this process. All changes
that need to be made to ticketed reservations must be approved by the Emergent Travel
Administrator. Change fees assessed to changes not approved by the Emergent Travel
Administrator will not be reimbursed. Any exception to this requires the approval of the
CFO.

Non-Employees should notify and immediately return any unused tickets to Emergent’s Travel
Administrator.

Non-Employees should advise the appropriate Emergent Administrative Assistant of travel
priorities to ensure that travel requirements are met at the lowest cost. Please specify
all possible times and days of travel as well as alternate airports that may be
considered.

Non-Employees should arrange for any necessary car rentals through the Emergent travel
management company contract rate in effect at the time.

The Emergent travel management company contract rate for hotel and car rental reservations
is meant to be a ceiling price. Weekly, weekend and other unadvertised promotional prices
may be in effect at the time of use. Always check for a lower special rate at check in.

Airline Reservations 

	 	•	 	Non-Employees will be booked at the lowest air fare, coach class. Upgrading to a
higher class of service at the departure airport or before will not be allowed.
	 
	 	•	 	Frequent flyer awards that Non-Employees accrue while on business travel for
Emergent belong to Non-Employees provided there is no additional direct or indirect
expense to the company.

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	 	•	 	Chartering or renting an airplane or private helicopter is not permitted. Personal,
leased or rented aircraft may not be used for company business.

Car rental 

	 	•	 	Consultants from the same company and/or consultants visiting Emergent on the same
day must share vehicles whenever feasible.
	 
	 	•	 	A car may be rented when business conditions warrant. Rental is limited to midsize
vehicles.
	 
	 	•	 	Cars should be returned with a full tank of gas to avoid inflated fuel charges
unless given other instructions by the rental company. Emergent will not pay for fuel
charges resulting from a failure to return a car with a full tank of gas.
	 
	 	•	 	Rental cars should always be inspected for damage before driving them.
	 
	 	•	 	The cost of any insurance covering a rental car or any damage to a rental car is the
responsibility of the Non-Employee.
	 
	 	•	 	The company does not expect the use of personal cars for business travel. However,
when appropriate, mileage at the effective rate *  (rate is
adjusted per IRS guidelines), parking and tolls are reimbursed. Personal cars should
only be used for business travel when using a rental car creates unnecessary
inconvenience to the employee.
	 
	 	•	 	Damage to a personal car used for company business will be reimbursed if the use was
required for business. Reimbursement is limited to the person’s personal automobile
collision insurance deductible up to $500, or up to $500 if no collision insurance is
in force. This must be reported to and approved by the CFO.

Hotel Reservations 

	 	•	 	Emergent has arranged for special rates at certain hotels. The relevant Emergent
Administrative Assistant will reserve rooms for Non-Employees at these hotels. Any
exception to this (other than for unavailability) requires the approval of the CFO.
	 
	 	•	 	Standard rooms will normally be used unless special contract arrangements permit the
use of other rooms at minimal or no extra charge.
	 
	 	•	 	All reservations are guaranteed for late arrival. Hotel reservations must be
canceled by 4:00 PM on the scheduled day of arrival to avoid a no-show charge being
made. Non-Employees are responsible for contacting the hotel by 4:00 PM if cancellation
of the room is necessary. Emergent will not pay for no-show charges.
	 
	 	•	 	Hotel shuttle services should be used to/from airports whenever possible. Emergent’s
travel management team will verify this service. Travel by taxi is permitted where
public transportation is unavailable or inappropriate. The

 3

 

 

fare and method of payment should always be verified before entering a taxi.

3. FOOD & BEVERAGE EXPENSES 

	 	•	 	Reasonable expenses for food and beverages consumed while traveling will be
reimbursed. Detailed receipts must be turned in on everything. Food and beverage
expenses should be directly related to fulfilling business objectives.
	 
	 	•	 	Tear tab receipts are not acceptable.
	 
	 	•	 	A separate receipt for alcohol must be turned in if alcoholic beverages are
consumed.
	 
	 	•	 	As a general guideline, meal expenses should generally average out to no more than
$43/day, with certain exceptions based on pricing differences between different
geographic regions.
	 
	 	•	 	If a Non-Employee incurs a meal expense for other persons and seeks reimbursement
for such additional expense, the business reason for the meal and the list of attendees
must be submitted in order for reimbursement to be processed.

4. REIMBURSABLE EXPENSES 

Listed below are examples of business travel expenses that are reimbursable:

	 	•	 	Parking fees
	 
	 	•	 	Toll charges
	 
	 	•	 	Travelers check fees for international travel only
	 
	 	•	 	Business telephone calls
	 
	 	•	 	Reasonable (one per day) personal telephone calls, with a cap of $5.00 for domestic
and $25.00 for international travel
	 
	 	•	 	Business-related FAX
	 
	 	•	 	Taxi and airport shuttle transportation
	 
	 	•	 	Tips will be reimbursed, up to the amount specified, as follows:
20% for meals, 10% for drivers, $10.00 per week for maid service, $3.00 for valet
parking, $5.00 for luggage handling. Anything over these amounts will not be reimbursed.

Listed below are examples of business travel expenses that are not reimbursable:

	 	•	 	Personal charge/credit card annual fees
	 
	 	•	 	Normal dependent-care expenses
	 
	 	•	 	Club membership fees

 4

 

 

	 	•	 	Auto repairs on personal cars
	 
	 	•	 	Personal amenities
	 
	 	•	 	Gifts, flowers, contributions/awards and prizes
	 
	 	•	 	Pet care
	 
	 	•	 	Traffic fines
	 
	 	•	 	Hotel movies
	 
	 	•	 	Clothing

5. EXPENSE REPORTING 

Requests for expense reimbursement must accompany the Non-Employee’s invoice for services.
In order for invoices to be processed, they must refer to the applicable EMERGENT
Accounting Code, which shall be designated by Emergent.

6. RECEIPTS 

Receipts are required to support all expenses incurred during travel, other than expenses
billed directly to Emergent. Documentation of expenses — such as receipts, paid bills or
similar verification sufficient to support an expenditure — is required for all non-direct
billed travel expenses. Alcoholic beverages consumed are to be itemized separately.

Examples of acceptable documentation include:

	 	 	 	 	 
	 

	 	Air Travel
	 	Original passenger coupon or invoice
	 

	 	Hotel
	 	Hotel bill plus proof of payment
	 

	 	Car
	 	Original rental agreement or express return receipt
	 

	 	Food and Beverage
	 	Itemized receipt only (tear tab receipts are not
acceptable)
	 

	 	Entertainment
	 	Itemized receipt only (tear tab receipts are not
acceptable)
	 

	 	Other Transportation
	 	Taxi/shuttle receipts are required.

	 

	 	Leased Car
	 	All receipts for gas and oil are required, regardless of the amount

If receipts are missing, the Non-Employee must prepare a memo specifying the amount
requested for reimbursement and the details. Such memos must be approved by the functional
vice president and the CFO. Repeated failure to submit receipts may result in Emergent’s
refusal to reimburse such expenses.

Receipts for direct-billed expenses must not be submitted to Emergent.

 5

 

 

7. FOREIGN CURRENCY 

Foreign currency expenditures should be converted and shown on each invoice in

U.S. dollars. The exchange rate given at the time the currency was exchanged should be used.
If the exact U.S. dollar amount is not available, use the Wall Street Journal exchange rate
or the rate of the Currency Exchange Bulletin Board closest to the date(s) of the business
event and add a one percent conversion cost.

8. TRAVEL ACCIDENT INSURANCE 

Non-Employees are not covered by travel accident insurance while they are traveling on
behalf of Emergent. Non-Employees must make their own arrangements for travel insurance,
which will not be reimbursed by Emergent.

9. PASSPORTS, VISAS AND VACCINATIONS 

Non-Employees are responsible for determining the proper documentation required whenever
traveling outside their country of residence. Attempting to enter another country without
proper documentation can result in immediate deportation or imprisonment.

Non-Employees are responsible for determining and obtaining any necessary innoculations
required whenever traveling outside the United States.

10. EMERGENCY MEDICAL SERVICE 

The cost of any emergency medical care is the responsibility of the Non-Employee.

A list of the Emergent Administrative Assistants may be obtained from the Emergent Travel
Administrator. Any questions about which Administrative Assistant should assist in making travel
arrangements should be directed to the Emergent Travel Administrator.

 6

 

 

Page 12 of 15

EXHIBIT C

Background Checks. Company shall perform conviction checks (felonies and
misdemeanors) BEFORE the Company employee is sent to EBS’s facility if the employee of the
Company is assigned to EBS for more than ten (10) consecutive work days or more than thirty
(30) work days in any twelve (12) month period. Company shall perform conviction checks
every two (2) years for all individuals referred to EBS and for those currently on
assignment at EBS’s facility. The following guidelines should be used to determine if
Company’s employee may be sent to work on EBS’s premises.

	A.	 	Company must exclude an individual from EBS’s premises if he/she has ever been
convicted of the following types of crime:

Any type of Murder

Voluntary Manslaughter

Aggravated Assault

Assault with a Deadly Weapon

Kidnapping

Rape

Sexual Battery or Gross Sexual Imposition

Arson

Robbery

Trafficking in Drugs

	B.	 	If Company’s employee will deal directly with cash on behalf of EBS or with the
authorization of any type of payment, Company must exclude any individual who has ever
received a misdemeanor or felony conviction for:

Theft

Embezzlement

Fraud of any kind

	C.	 	Other than the specific felonies listed in paragraph “A” (which excludes an
individual from EBS’s premises), Company must exclude any individual convicted of a
felony, e.g. Burglary, Unauthorized Criminal Access to Computer Systems, etc., within
the last five (5) years.

	D.	 	Company must exclude any individual convicted of a misdemeanor within the last
two (2) years. Individuals with convictions for traffic violations do not fall into
the exclusion category. Individuals with DUI convictions do not fall into the
exclusion category unless he/she will be driving a Company vehicle, or multiple charges
exist. Company should contact EBS for clarification if uncertainties exist.

Company must exclude any individual from EBS’s premises if he/she meets any of the above
guidelines.

Note: Different states may have different names for the above types of crime. For
example, some states may refer to “assault with a deadly weapon” as “battery with a
dangerous ordnance.”

Conviction checks should consist of the following:

 

 

Page 13 of 15

DC, MD, VA Residents: Check in the city and county of residence and the
city and county of employment.

New to area (resident less than two years): Check in the city and county of
former residence. If the individual has moved several times in the past two (2)
years, contact EBS for clarification around required checks.

All other locations: Check in the county of residence and the county where
individual will be working, via the county Clerk of Courts.

Company shall check all references provided by applicants before sending to EBS and shall
not refer anyone who has poor references. EBS is to be made aware of any person being
referred who has worked for a company that makes products like EBS’s every time this person
is referred to EBS, and must agree before the person is sent to EBS’s facility.

Prohibition on Controlled Substance Use. EBS prohibits the use, possession, or
distribution of any controlled substance or alcoholic beverage by a Company or an employee
of the Company on any of EBS’s premises. A controlled substance is any drug or drug-like
substance whose sale, use, or possession is unlawful, or any prescribed substance used
without a prescription. Violators of this policy will be banned from EBS’s premises.

The Company shall not permit users of controlled substances to work on EBS’s premises. Any
employee of the Company who is assigned to EBS for more than thirty (30) work days in any
twelve (12) month period or is assigned to EBS for more than ten (10) consecutive work days
must be tested before being sent to EBS for the presence of amphetamines, barbiturates,
benzodiazepines, cannabinoids (marijuana, THC, hashish), cocaine, opiates (codeine,
morphine, oxycodone, hydromophone, hydrocodone), methadone, and phencyclidine (PCP) by a
qualified laboratory using initial screening and confirmation of any positive results. A
qualified laboratory must follow the standards of the College of American Pathologists, meet
any federal, state, and local laws and regulations, and use a cutoff limit within the
detection ranges specified in this contract. Any individual who has been tested once but
has not worked on EBS’s premises for more than the six (6) previous months must be retested
in accordance with this paragraph. Company shall retest every two (2) years all individuals
referred to EBS and those currently on assignment at EBS’s facility.

Anyone who confirms positive for a controlled substance without a legitimate medical reason
will not be assigned to work on EBS’s premises. Furthermore, the Company will control the
work assignments of anyone taking a prescription drug for a legitimate medical reason so the
person does not present a safety risk to himself/herself, other personnel, or EBS’s
property.

A Company must have a written policy on substance abuse to assure compliance with the above
criteria.

A qualified laboratory must use a cutoff limit within the detection ranges specified in the
table below:

 

 

Page 14 of 15

DRUG DETECTION THRESHOLDS (ng/ml)

	 	 	 
	Drug, Drug Group	 	Typical Detection
	or Drug Metabolites	 	Threshold,ng/ml
	Amphetamines
	 	500-1000
	Barbiturates
	 	200-300
	Benzodiazepines
	 	300
	Cannabinoids (marijuana)
	 	15-50
	Cocaine metabolites
	 	150-300
	Opiates (Codeine, Morphine,
Oxycodone, Hydromophone,
Hydrocodone)
	 	300
	Methadone
	 	300
	Phencyclidine (PCP)
	 	25

EBS shall have the right to require confirmation that the conviction checks and drug tests
of Paragraphs 16 and 17, above, respectively, have been and are being conducted pursuant to
this Agreement. Said confirmation may take the form of an audit which EBS may conduct of
Company’s records. However, any such audit shall be done at a reasonable time and place and
shall not be unduly burdensome on the Company’s business operations. Furthermore, any
information regarding any of Company’s employees or applicants which may be revealed during
such audit shall remain confidential.

Working with Bloodborne Pathogen(s). If the Company’s employees covered by this
agreement are to have assignments in which they could be exposed to bloodborne pathogens,
Company acknowledges that EBS requires Company to provide for any training at Company’s
expense under requirements in Federal Regulation 29 CFR 1910.1030. Furthermore, Company
agrees to offer to any such employees who could be exposed to bloodborne pathogens at
Company’s expense any and all inoculations as may be required under Federal Regulation 29
CFR 1910.1030 and to follow any and all other requirements under said Federal Regulation.

Health, Safety and Environmental.

(A) Company shall immediately inform EBS of any credible threat made against anyone on EBS’s
premises and/or against EBS’s property by any of Company’s employees. Company is required
to communicate any such information of a credible threat to EBS.

(B) Company agrees that when on EBS’s premises, Company and its employees will conform to
the requirements of the Plant’s/Site’s work and safety rules.

The following is also required regarding Health, Safety and Environmental (HS&E)
expectations prior to Company’s employees or sub-contracted employees beginning work.
Company is expected to:

	§	 	Abide by applicable governmental and internal health, safety and environmental
requirements.
	 
	§	 	Has a documented and written Health, Safety and Environmental policy and management
system (that is reviewed by EBS), and is consistent with the potential risk and scope
of work to meet the performance criteria of that system.

 

 

Page 15 of 15

	§	 	Employ or cause to be employed only persons who are skilled in the work to be
performed and trained in applicable HS&E policies and procedures.
	 
	§	 	Use or provide equipment that is safe to operate and meet governmental requirements.
	 
	§	 	Record work hours and HS&E incidents and report to EBS as requested by EBS.
Follow-up to prevent recurrence of incidents.
	 
	§	 	Monitor and evaluate Company’s HS&E performance and take corrective action as needed.
	 
	§	 	Provide authorized EBS representatives access to Company’s work area(s).exv10w20

 

Exhibit 10.20

AMENDED AND RESTATED MARKETING AGREEMENT

     THIS AMENDED AND RESTATED MARKETING AGREEMENT (the “Agreement”) is made effective this 1st
day of January 2000 (the “Effective Date”), by and between BioPort Corporation, a Michigan
corporation having its principal office at 3500 N. Martin Luther King, Jr., Blvd., Lansing
Michigan 48906 (“BIOPORT”) and INTERGEN N.V., a corporation of the Netherlands Antilles, its
address being c/o Tarma Trust Management, Castorweg 22-24, Curacao, Netherlands Antilles
(“INTERGEN”) (BIOPORT and INTERGEN being sometimes referred to in the singular as “Party” and
collectively as “Parties”).

RECITALS

     WHEREAS, INTERGEN and Michigan Biologic Products, Inc. (“MBP”) entered into a Marketing
Agreement, effective November 28, 1997 (the “Marketing Agreement”), whereby INTERGEN agreed to
serve as the sole and exclusive marketing agent for certain products in defined territories;

     WHEREAS, INTERGEN paid $60,000 to MBP in consideration of its appointment as an
exclusive representative pursuant to the Marketing Agreement;

     WHEREAS, INTERGEN and MBP entered into a Consulting Agreement, effective November 28, 1997
(the “Consulting Agreement”), whereby INTERGEN agreed to serve as a consultant to MBP for the sale
and promotion of certain products in defined territories;

     WHEREAS, INTERGEN paid $40,000 to MBP in consideration of its appointment as an
exclusive representative pursuant to the Consulting Agreement;

     WHEREAS, BIOPORT acquired certain assets from the State of Michigan pursuant to Public Act 522
of 1996;

     WHEREAS, INTERGEN, MBP and BIOPORT agreed to assign the benefits and obligations of MBP
under the Marketing Agreement and the Consulting Agreement to BIOPORT, and INTERGEN received
notice of the assignment, and gave consent thereto;

     WHEREAS, the Parties deem it desirable and in their mutual interest to restructure their
contractual relationships, to terminate the Consulting Agreement, and to amend and restate the
Marketing Agreement in its entirety; and

     WHEREAS, the Parties have entered into a Termination and Settlement Agreement on even date
herewith.

     THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby
amend and restate the Marketing Agreement in its entirety as follows:

 

 

AGREEMENT

	1.	 	For purposes of this Agreement, the terms listed below shall have the meaning ascribed to
them in this Section.
	 
	 	 	“Affiliates” when used with respect to any Person shall mean any Person which,
directly or indirectly, controls or is controlled by or is under common control with another
Person. For purposes of this definition, “control” (including the correlative meanings of the
terms “controlled by” and “under common control with”), with respect to any Person, shall
mean possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of another Person, whether through the ownership of voting securities
or by contract or otherwise.
	 
	 	 	“AVA” shall mean anthrax vaccine adsorbed.
	 
	 	 	“Availabilty Date” shall mean the date on which BIOPORT has 100,000 doses of AVA or
PBT Vaccine that have (i) been released for distribution by the Food and Drug
Administration and the Quality Assurance Department of BIOPORT and (ii) been made available
by the U.S. Department of Defense for sale.
	 
	 	 	“BIOPORT” shall mean, for purpose of this Agreement, BIOPORT and any Affiliate
or joint venture in which BIOPORT is a participant.
	 
	 	 	“Confidential Information” shall mean information relating to the buss ness,
prospective business, technical processes, finances, price lists or lists of customers and
suppliers of a Party which is provided to the other Party in connection with this Agreement
and is designated as “confidential” or “proprietary” by such Party. Notwithstanding the
above, “Confidential Information” shall not include information which (i) was known to the
Party receiving the information prior to the date of this Agreement, (ii) has been generally
known to others in the trade or business of the Parties, (iii) has been part of public
knowledge or the literature otherwise than as a result of any breach of confidence by the
Party receiving the information, (iv) has become available to the Party receiving the
information from a third party not representing either of the Parties, or (v) has been
independently acquired by the Party receiving the information as a result of work carried
out by an employee of such Party to whom no disclosure of such information shall have been
made.
	 
	 	 	“Dollars” and $” shall mean dollars in the legal tender of the
United States of America. 
	 
	 	 	“PBT Vaccine” shall mean the pentavalent
botulinum toxoids vaccine. 
	 
	 	 	“Person” shall mean and includes natural persons, corporations, limited liability
companies, limited partnerships, general partnerships, joint stock companies, joint
ventures, associations, companies, trusts, lenders, trust companies, -land trusts,
business trusts, or other organizations, irrespective of whether they are legal entities,
and governments and agencies and political subdivisions thereof
	 
	 	 	“Products” shall mean AVA, the PBT Vaccine, and such other vaccines against any
biological warfare threat agent for which BIOPORT may be duly licensed to manufacture or
sell, currently or in the future.

2

 

	 	 	“Territory” shall mean all countries of the Middle East and North Africa, except
Israel and those countries to which export of AVA or PBT vaccine is prohibited by the U.S.
government; provided, however, if such prohibition is subsequently eliminated, then any
such country for which the prohibition has been eliminated shall be deemed to be included
within the definition of Territory.
	 
	 	 	“Total Contract Value” shall mean the gross amount promised to be paid to BIOPORT
from any Person in the Territory for the purchase of the Products.
	 
	2.	 	APPOINTMENT

	 	2.1	 	BIOPORT appoints INTERGEN to be its sole and exclusive marketing
representative with regard to the sale and promotion of the Products in the Territory.
The Parties agree that BIOPORT has the right to retain other representatives for the
sale and promotion of the Products in the Territory; provided, however, that such
retention shall not limit or relieve the obligation of BIOPORT to pay fees to INTERGEN
that may otherwise be due under this Agreement. INTERGEN shall provide services to
BIOPORT in accordance with the terms and conditions set out in this Agreement.
	 
	 	2.2	 	The Parties acknowledge and agree that INTERGEN shall have the right to, in
its sole discretion, hire such employees, engage such consultants and appoint such
agents as it deems appropriate to perform its obligations hereunder. INTERGEN
further agrees that such consultants, employees or agents shall be bound by the
restrictions of Paragraphs 3.2 and 12 herein.

	3.	 	DUTIES OF INTERGEN

	 	3.1	 	Throughout the term of this Agreement, INTERGEN shall perform a
variety of marketing and other activities as follows:

	 	3.1.1	 	Assist BIOPORT with the promotion and sale of the
Products throughout the Territory and assist with inquiries or orders
received for Products;
	 
	 	3.1.2	 	Advise BIOPORT on advantageous pricing structures for the
Products, from time to time;
	 
	 	3.1.3	 	Safeguard the property, rights, and interests of BIOPORT
and assist BIOPORT in taking all steps to defend the rights of BIOPORT;
	 
	 	3.1.4	 	Assist BioPort with promptly obtaining and maintaining all
licenses, permits and authorizations as may be required from time to time in
connection with the supply of the Products to the Territory;
	 
	 	3.1.5	 	Supply customers and potential customers with (i) such
literature as may be commercially prudent for the purpose of promoting sales
of the Products within the Territory and (ii) catalogs and such other
information that are necessary for proper presentation and solicitation of
Product sales;

3

 

	 	3.1.6	 	Promptly forward to BIOPORT a duplicate copy of every invoice,
communication, letter or opportunity relating to the supply of the
Products (directly or indirectly) to Persons in the Territory;
	 
	 	3.1.7	 	Keep BIOPORT informed from time to time as to the market for
the Products in the Territory, the prices at which customers and potential
customers are prepared to buy the Products, and use its best efforts to give
BIOPORT notice of any change in the market price structure for the Products;
	 
	 	3.1.8	 	Take, particularly in light of the preferred customer
status to be granted to the U.S. Government in terms of pricing and the
Products supplied, all reasonable and necessary steps to ensure that sales
of Products to Persons in the Territory will be used for the internal
requirements of the Persons acquiring the Products from BIOPORT and such
Products are not acquired for purposes of resale or other transfer into the
private or foreign public sectors;
	 
	 	3.1.9	 	Take all reasonable and necessary steps to ensure that
its sales of Products to Persons inside of the Territory are under
terms and conditions that do not undermine other existing or potential sales
of Products outside the Territory; and
	 
	 	3.1.10	 	Use its best efforts to sell, at a minimum, 100,000 doses of AVA, in the
aggregate, to Persons in the Territory per year, pursuant to orders received
by BIOPORT.

	 	3.2.	 	INTERGEN shall perform the above-described in accordance with the highest
business standards and with its best efforts, and will not perform any acts which will
or may reflect adversely upon the business, integrity, or goodwill of BIOPORT.
INTERGEN shall not, and shall ensure that its officers, employees and agents do not,
make any representation or give any warranty in relation to the Products other than
those which are contained in BIOPORT’s current printed literature or packaging or
which have been specifically previously authorized in writing by BIOPORT. It is
understood by the Parties that INTERGEN shall not accept orders or make contracts on
behalf of BIOPORT other than subject to confirmation and acceptance in
writing by BIOPORT, nor shall INTERGEN incur any liability of whatever nature on
behalf of BIOPORT or pledge BIOPORT’s credit.

	4.	 	DUTIES OF BIOPORT
	 
	 	 	BIOPORT shall:

	 	4.1	 	Use its best efforts to promptly obtain and maintain all licenses, permits and
authorizations as may be required from time to time in connection with the supply of
the Products to the Territory;
	 
	 	4.2	 	Supply INTERGEN, at the expense of BIOPORT, with (i) such literature as
INTERGEN shall reasonably request from time to time for the purpose of promoting sales
of the Products within the Territory and (ii) catalogs and such other information as,
in BIOPORT’s opinion, are necessary for proper presentation and solicitation of
Product sales;

4

 

	 	4.3	 	Promptly forward to INTERGEN a duplicate copy of every invoice,
communication, letter or opportunity relating to the supply of the Products
(directly or indirectly) to Persons in the Territory;
	 
	 	4.4	 	Keep INTERGEN informed as to the Products it has available for sale in the
Territory, the prices at which it is prepared to sell the Products, and use its best
efforts to give INTERGEN at least three (3) months’ advance notice of any proposed
change in its price structure;
	 
	 	4.5	 	Permit INTERGEN by nameplate at its office and/or in its letter heading to
indicate that INTERGEN is the marketing representative of BIOPORT for the Products in
the Territory subject to such indication having been previously approved in writing by
BIOPORT (such approval not to be unreasonably withheld or delayed) and provided that
such indication shall cease on the expiration or earlier termination of the Agreement
(for any cause);
	 
	 	4.6	 	Allow INTERGEN to have access to the relevant books and accounts and records
of BIOPORT at all reasonable times so as to ensure that all invoices relating to the
supply of the Products to the Territory have been properly recorded;
	 
	 	4.7	 	Take, particularly in light of the preferred customer status to be granted to
the U. S. Government in terms of pricing and the Products supplied, all reasonable and
necessary steps to ensure that sales of Products to Persons in the Territory will be
used for the internal requirements of the Persons acquiring the Products from BIOPORT
and such Products are not acquired for purposes of resale or other transfer into the
private or foreign public sectors;
	 
	 	4.8	 	Take all reasonable and necessary steps to ensure that its sales of Products
to Persons outside of the Territory are under terms and conditions that do not
undermine other existing or potential sales of Products within the Territory.
	 
	 	4.9	 	Use its best efforts to supply, at a minimum, 100,000 doses of Anthrax, in the
aggregate, to Persons in the Territory per year, pursuant to orders received by
BIOPORT; and
	 
	 	4.10	 	Advise INTERGEN, in writing, of all established policies and procedures of
BIOPORT by which INTERGEN shall be expected to abide and shall promptly notify
INTERGEN, in writing, of any changes to such policies and procedures.

	5.	 	INDEMNIFICATION
	 
	 	 	BIOPORT shall unconditionally and irrevocably indemnify and hold harmless INTERGEN, its
officers, employees and representatives from all losses (except indirect, incidental or
consequential losses), liabilities, claims, demands, expenses, and costs which INTERGEN,
its officers, and/or employees may suffer or incur as a direct result of any
claim or demand by any third party relating to the Products or any of them-, provided,
however, that the indemnity contained in this Subparagraph shall not apply to the extent
that any losses, liabilities, claims, demands, expenses, and costs should arise from the
gross negligence or willful misconduct of

5

 

	 	 	INTERGEN its officers, employees or representatives, and provided, further, that INTERGEN
shall:

	 	5.1	 	At the expense of BIOPORT, render such reasonable assistance to
BIOPORT as BIOPORT may require in respect of such claim or demand;
	 
	 	5.2	 	Not make any admissions in respect of such claim or demand or otherwise
prejudice the position of BIOPORT in respect of such claim or demand; and
	 
	 	5.3	 	The provisions of this Section shall survive the expiration or earlier
termination of this Agreement;

	6.	 	COMPENSATION

	 	6.1	 	In compensation for the marketing services provided by INTERGEN and any and all
of its subagents under this Agreement, BIOPORT shall pay to INTERGEN a fee for sales of
the Products supplied by or on behalf of BIOPORT to any Person in the Territory,
regardless of whether the sale was instigated by INTERGEN at forty percent (40%) of
Total Contract Value.
	 
	 	6.2	 	The fee herein in respect of any Products shall be paid to INTERGEN in Dollars.
Upon the payment of any fee, INTERGEN shall deliver to BIOPORT an acknowledgement of
receipt therefor.
	 
	 	6.3	 	The fee due hereunder shall be paid to INTERGEN within seven (7) banking days
(excluding Saturdays and Sundays and days in which banks in Michigan are authorized
or obligated by law to be closed) after payment for the Products has been received by
or on behalf of BIOPORT. In the case of BIOPORT’s receipt of any partial payment
hereunder, BIOPORT’s shall pay INTERGEN the fee on a pro rata basis.
	 
	 	6.4	 	As regards orders for the supply of the Products to Persons within the
Territory which are received by BIOPORT during the term of this Agreement but in
respect of which payment has not been made to BIOPORT at the expiration or earlier
termination of this Agreement, BIOPORT shall pay to INTERGEN (or as INTERGEN shall
reasonably direct in writing) fees in accordance herewith in respect of each such order
as and when payment has been received by BIOPORT for the Products that are the subject
of such order. For any sale of the Products for which contracts are concluded for the
benefit of BIOPORT with Persons in the Territory resulting from standing orders,
follow-on orders, extensions, or renewals of orders generated by INTERGEN during the
term of this Agreement, such sales shall be deemed sales under this Agreement for which
INTERGEN shall be paid fees in accordance with the provisions of this Agreement.
	 
	 	6.5	 	In the event that BIOPORT fails to make any payment due under this Agreement to
INTERGEN by the due date for such payment, interest shall accrue and be payable on the
unpaid amount at the annual rate of five percent (5%) above the prime rate published by
The Wall Street Journal  (New York edition) as of the date on which
INTERGEN should have received such payment until payment, in full, is received by
INTERGEN.

6

 

	 	6.6	 	INTERGEN shall be responsible for all out-of-pocket expenses incurred by it in
the performance of its duties hereunder.
	 
	 	6.7	 	The Parties agree that INTERGEN may present additional sales opportunities to
BIOPORT outside of the Territory on a non-exclusive basis. The Parties, in such an
instance, shall negotiate in good faith the compensation due INTERGEN, if any.

	7.	 	DURATION AND TERMINATION

	 	7.1	 	The term of this Agreement shall commence on the Effective Date and unless
previously terminated in accordance with its provisions, this Agreement shall
terminate at midnight on the last day of the third (3rd) year from the Availability
Date.
	 
	 	7.2	 	This Agreement shall be automatically extended for an additional five (5) year
term upon the same terms and conditions if BIOPORT achieves $5,000,000 of sales in the
Territory during the initial three (3) year term of the Agreement. As used in this
Section, “sales” means the Total Contract Value of completed orders, orders received
but not completed and sales contracts entered into but not fully performed as of the
expiration of the three (3) year initial term of this Agreement.
	 
	 	7.3	 	Either Party may terminate this Agreement at any time by notice in writing to
the other Party if the other Party commits a material breach of any of the material
provisions of this Agreement and falls to remedy the breach within a reasonable time
and in any event not less than sixty (60) days from the date of the notice requiring
it to do so. If a non-financial breach cannot reasonably be cured, the Parties shall
negotiate in good faith for an additional sixty (60) days to attempt to agree upon an
alternative performance by the breaching Party or the payment of damages to the
non-breaching Party that will constitute a cure and will be deemed to terminate the
breach, it being acknowledged that if no such agreement is reached within the
additional sixty (60) days. The breach at issue shall be deemed a default and the
non-breaching Party may thereafter terminate this Agreement by written notice to the
other Party with immediate effect.
	 
	 	7.4	 	In the event that BIOPORT shall not have at least 100,000 doses
reasonably available for sale by INTERGEN, the Parties shall negotiate an extension of
the term of this Agreement as provided in paragraphs 7.1 and 7.2. The Parties shall
not unreasonably withhold consent to such extension.
	 
	 	7.5	 	The termination of this Agreement shall not affect any accrued
rights or liabilities of either Party nor shall it affect the coming into force or
continuance in force of, any provision of this Agreement which is expressly or
impliedly intended to come into or remain in force on or after such termination.

	8.	 	DISPUTE RESOLUTION AND GOVERNING LAW
	 
	 	 	All disputes arising between the Parties shall be finally settled by binding arbitration
before a single arbitrator in Lansing, Michigan, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association. Any award rendered by the
arbitrator shall be final and may be enforced by any court of competent jurisdiction. This
Agreement shall be governed by

7

 

	 	 	and construed in accordance with laws of the State of Michigan, excluding any conflicts
of law rules that would refer the choice of law to another jurisdiction.

	9.	 	NON-SOLICITATION
	 
	 	 	INTERGEN agrees that during the term of this Agreement, and for a period of twelve (12)
consecutive months after termination of such Agreement INTERGEN will not i) directly or
indirectly induce or attempt to induce or otherwise counsel, advise, solicit or encourage
any employee to leave the employ of BIOPORT or accept employment with any other person or
entity, ii) directly or indirectly induce or attempt to induce or otherwise counsel,
advise, solicit or encourage any person who at the time of such inducement, counseling,
advice, solicitation or encouragement had left the employ of BIOPORT within the previous
six (6) months to accept employment with any person or entity besides BIOPORT; and iii)
solicit, interfere with, or endeavor to cause any customer, client, or business partner of
BIOPORT to cease or reduce its relationship with BIOPORT or induce or attempt to induce any
such customer, client, or business partner to breach any agreement that such customer,
client, or business partner may have with BIOPORT.
	 
	10.	 	BIOPORT REPRESENTATIVE
	 
	 	 	INTERGEN shall take direction and guidance in performing its services hereunder from
Robert Bidlingmeyer, Vice President, Marketing of BIOPORT, or such other persons as may
be designated from time to time in writing.
	 
	11.	 	INDEPENDENT CONTRACTORS
	 
	 	 	With respect to the subject matter of this Agreement, the Parties are and remain
independent contractors. This Agreement shall not be deemed to create a joint venture,
partnership, association, or agency between the Parties. INTERGEN is not authorized to
incur or create any obligation express or implied on behalf of BIOPORT or to bind BIOPORT
in any manner whatsoever. The Parties understand and agree that this Agreement is not a
contract of employment, or an offer to enter into a contract of employment. The Parties
further agree that INTERGEN shall have sole control of the manner and means of performing
the services. BIOPORT shall not have the right to require that INTERGEN or its employees do
anything that would jeopardize the relationship of independent contractor between the
Parties. INTERGEN shall have the right to appoint and shall be solely responsible for its
own workforce, who shall be its own employees.
	 
	12.	 	COMPLIANCE WITH FOREIGN CORRUPT PRACTICES ACT
	 
	 	 	INTERGEN, on its own behalf and on behalf of its owners, managers, affiliates, agents and
related entities, warrants, represents, and agrees that (i) neither it nor its owners,
managers, affiliates, agents or related entities are officials or candidates of any
government, governmental agency or instrumentality, or political party, (ii) it is aware of
the requirements of applicable law including the U.S. Foreign Corrupt Practices Act
(“FCPA”) and the legal prohibitions on direct or indirect improper payments or gifts to
foreign officials or candidates, (iii) it will comply with all applicable laws including
the FCPA, and use no part of the above commissions to make any improper or illegal
payments, (iv) it will, upon the Company’s request, annually certify such

8

 

	 	 	compliance to the Company, and notify the Company of any relevant change in the status of
its owners, managers, affiliates, agents or related entities, (v) it will indemnify the
Company and its officers, directors, employees, agents and affiliates for any violation of
such laws, (vi) in the event of any such violation, this Agreement will immediately
terminate without the need for notice, and (vii) in such event INTERGEN will forfeit any
right to any accrued and unpaid commissions and compensation under this Agreement.
	 
	13.	 	CONFIDENTIALITY

	 	13.1.	 	During the term of this Agreement and for a period of two (2) years following
its termination (for whatever cause) or expiration, each Party will keep confidential
the terms and conditions of this Agreement (but may acknowledge the existence of the
relationship between the Parties) and all Confidential Information received from the
other Party and will not use the same but, to the extent necessary to implement the
provisions of this Agreement, each Party may disclose the Confidential Information to
such of its customers, officers, or employees as may be reasonably necessary or
desirable provided that before any such disclosures each Party shall make such persons
aware of its obligations of confidentiality under this Agreement and shall at all
times use its best efforts to procure compliance by such persons therewith.
	 
	 	13.2.	 	Notwithstanding the provisions of Section 11.1, the Parties agree that the
terms and conditions of this Agreement may be disclosed to the U.S. Government,
including any division of the military, in connection with the negotiation or sale
of any of the Products to such entity. In such cases, the Parties shall agree as to
the best means of disclosure in order to assure the continued protection of
Confidential Information.
	 
	 	13.3.	 	Either Party may demand the return of the Confidential Information at any
time by notice in writing given to the other Party. On the giving of such notice,
the Party served with such notice shall deliver or procure the delivery to the other
Party or to its order of each and every original and copy document and thing
reproducing, containing, or embodying any Confidential Information.

	14.	 	FORCE MAJEURE

	 	14.1.	 	The obligations of a Party under this Agreement shall be suspended during the
period and to the extent that such Party is prevented or hindered from complying
therewith by any cause beyond its reasonable control including (insofar as beyond such
control but without prejudice to the generality of the foregoing expression) strikes,
lock-outs, labor disputes, act of God, war, riot, civil commotion, malicious damage,
compliance with any law or governmental order, rule, regulation or direction,
accident, breakdown of plant or machinery, fire, flood or storm.
	 
	 	14.2.	 	In the event of either Party being so hindered or prevented such Party
shall give notice of suspension as soon as reasonably practicable to the other Party
stating the date and extent of such suspension and the cause thereof and the omission
to give such notice shall forfeit the rights of such Party to claim such suspension.
Any Party whose obligations have been suspended as aforesaid shall resume the
performance of such obligations as soon as reasonably practicable after the removal
of the cause and shall so notify the other Party. In the event that such cause
continues for more than six (6) months, either Party

9

 

	 	 	 	may terminate this Agreement upon giving to the other Party not less than
sixty (60) days’ notice.

	15.	 	ENTIRE AGREEMENT
	 
	 	 	This Agreement constitutes the entire understanding between the Parties with respect
to the subject matter of this Agreement and supersedes all prior agreements,
negotiations and discussions between the Parties relating thereto, with the
exception of the Termination and Settlement Agreement entered into of even date
herewith.
	 
	16.	 	AMENDMENTS
	 
	 	 	No amendment or variation of this Agreement shall be effective unless in
writing and signed by a duly authorized representative of each of the Parties.
	 
	17.	 	HEADINGS
	 
	 	 	Section headings shall not form part of this Agreement for the purposes of its
interpretation.
	 
	18.	 	ASSIGNMENT
	 
	 	 	Neither Party shall without the prior written consent of the other Party, which shall
not be unreasonably withheld or delayed, assign, transfer, sub-contract, charge,
delegate or deal in any other manner with this Agreement or its rights or duties
hereunder or part thereof, or purport to do any of the same, except, however, it is
agreed that INTERGEN may assign, in whole or in part, its rights and obligations under
this Agreement to an Affiliate without obtaining the consent of the Company. In the
event that INTERGEN assigns any of its rights and interests to an Affiliate in
accordance with this provision, it shall provide the Company with notice of such
assignment within a reasonable period of time of such assignment
	 
	19.	 	WAIVER
	 
	 	 	The failure of a Party to exercise or enforce any rights under this Agreement shall not be
deemed to be a waiver thereof nor operate so as to bar the exercise or enforcement thereof
at any time or times thereafter.

10

 

	20.	 	COUNTERPARTS
	 
	 	 	This Agreement may be signed in two counterparts, both of which taken together shall
constitute one and the same Agreement. Either Party may enter into the Agreement by
signing either such counterpart.
	 
	21.	 	NOTICES
	 
	 	 	Any notice given under this Agreement shall be in writing and shall be given by
delivering the same by hand at, or by sending the same by prepaid first class post
(airmail if to an address outside the country of posting) or confirmed facsimile to the
address of the relevant Party set out in this Agreement or such other address as either
Party may notify to the other from time to time. Notices delivered in accordance with
this provision shall be deemed delivered on the day delivered by hand or confirmed
facsimile and three (3) days after delivery by prepaid first-class post.
	 
	22.	 	REMEDIES NOT EXCLUSIVE
	 
	 	 	No remedy conferred by any of the provisions of this Agreement is intended to be
exclusive of any other remedy and each and every remedy shall be cumulative and shall
be in addition to every other remedy given under this Agreement or now or hereafter
existing in law or in equity or by statute or otherwise.
	 
	23.	 	SEVERABILITY
	 
	 	 	If any court of competent jurisdiction finds any provision of this Agreement to be
unenforceable or invalid, then such provision shall be ineffective to the extent of the
court’s finding without affecting the enforceability or validity of the remaining
provisions of this Agreement.

          WHEREFORE, the Parties have executed and delivered this Agreement in two identical
copies, each of which is deemed to be an original, effective as of the date first written
above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BIOPORT CORPORATION	 	 	 	INTERGEN N.V.	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By
	 	/s/ Robert G. Kramer
	 	 	 	By
	 	/s/ Ibrahim El Hibri	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Ibrahim El Hibri	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its	 	Chief Financial Officer	 	 	 	Its	 	Chairman	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

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