Document:

exv10w37

 

Exhibit 10.37

Amended and Restated Board Compensation Program

For purposes of this Program:

1. Outside Director shall mean any individual that is not an Inside Director or Independent
Directors and meets the definition of “outside director” as it may be amended from time to time
under Section 162(m) of the Internal Revenue Code of 1986, as amended, and the rules and regulation
thereunder.

2. Inside Director shall mean any individual who is also an officer or employee of the Corporation
or any of its affiliates.

3. Independent Director shall mean any individual who qualifies as an “independent director” under
any rule or regulation of any exchange upon which the Corporation’s securities may be listed (or in
the absence of such listing the determination shall be made by the Board of Directors in the
exercise of good faith in its sole and absolute discretion).

The determination of whether or not an individual is an Outside Director, Inside Director or
Independent Director shall be made by the Board of Directors
in its sole and absolute discretion at any time prior or subsequent to the date on which the
individual is appointed or elected to the Board of Directors.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Compensation for Members of	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Nominating &	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Corporate	 
	 	 	Board of	 	 	 	 	 	 	Compensation	 	 	Governance	 
	 	 	Directors	 	 	Audit Committee	 	 	Committee	 	 	Committee	 
	Annual Cash
Retainer for
Outside Directors
(paid quarterly)
	 	$	20,000	 	 	$	5,000	 	 	$	3,000	 	 	$	3,000	 
	Meeting Fees for
Outside Directors
(paid quarterly)
	 	$	1,500 per meeting	 	 	$	1,500 per meeting	 	 	$	1,000 per meeting	 	 	$	1,000 per meeting	 
	Telephonic Meeting
Fees for Outside
Directors (paid
quarterly)
	 	$	500 per meeting	 	 	$	500 per meeting	 	 	$	300 per meeting	 	 	$	300 per meeting	 
	Annual retainer and
meeting fees for
Inside Directors
	 	$	0	 	 	N/A	 	 	N/A	 	 	N/A	 
	Other
	 	Reimburse out of pocket expenses	 	Reimburse out of pocket expenses	 	Reimburse out of pocket expenses	 	Reimburse out of pocket expenses
	Equity Compensation	 	As set forth in the Company’s 2006 Stock Incentive Planexv10w38

 

Exhibit 10.38

Schedule 3.3

REVOLVING CREDIT NOTE

	 	 	 
	 

	 	East Lansing, Michigan
	$ 10,000,000

	 	July 29th, 2005

     FOR VALUE RECEIVED, the undersigned BIOPORT CORPORATION, a Michigan corporation, of Lansing,
Michigan, promises to pay to the order of FIFTH THIRD BANK, a Michigan banking corporation
(“Lender”), at its office in East Lansing, Michigan, or at any other place that the holder of this
Note designates in writing, the sum of Ten Million Dollars ($10,000,000), or any lesser amount that
Lender shall have loaned to the undersigned under Section 3 of a certain Amended and Restated Loan
Agreement dated  July 29th, 2005, between the undersigned and Lender,
as amended (“Loan Agreement”), together with interest (computed on the basis of a three hundred
sixty (360) day year for the actual number of days elapsed) on the unpaid balance at an annual rate
equal to three-eights of one percent (37.5 basis points) below the Index Rate until maturity and
after maturity at an annual rate equal to one and five eighths percent (162.5 basis points) above
the Index Rate. Any change in the interest rate on this Note that is occasioned by a change in the
Index Rate shall be effective on the day of the change in the Index Rate.

     “Index Rate” means the interest rate that Lender announces from time to time as its “prime”
interest rate. Borrower acknowledges that the rate that Lender announces as its “prime” interest
rate at any given time is not the lowest rate of interest that is available to Lender’s commercial
customers at that time.

     The interest on this Note shall be payable monthly beginning  July
29th, 2005, and continuing on the first day of each succeeding month until the
principal is paid in full. The principal of this Note shall be payable as provided in Section 3 of
the Loan Agreement.

     If Borrower does not make a payment of interest within ten days after it is due, then Borrower
shall immediately pay to Lender a late charge in an amount equal to the greater of Fifty Dollars
($50) or 10% of the amount of the late payment. This is in addition to Lender’s other rights and
remedies for default in payment of interest when due.

     This Note evidences Borrower’s indebtedness to Lender by reason of loans made and to be made
from time to time under Section 3 of the Loan Agreement (“Loans”). Lender’s records shall be prima
facie evidence of all Loans and prepayments and of the indebtedness outstanding under this Note at
any time. Borrower and the holder of this Note shall have all of
the rights and powers set forth in the Loan Agreement as though they were fully set forth in
this Note.

 

 

     Reference is made to the Loan Agreement for a statement of the conditions under which the
principal of this Note and accrued interest may become immediately due and payable.

     In this Note, “maturity” means the time when the entire remaining unpaid principal balance of
this Note is or becomes immediately due and payable without demand.

     Except as otherwise provided in the Loan Agreement, the undersigned waives protest,
presentment, demand and notice of nonpayment.

	 	 	 	 	 	 	 
	 	 	BIOPORT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Robert G. Kramer	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	Its
	 	President & CEO
	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	And by
	 	/s/ [Illegible]
	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	Its
	 	Associate Director of Financeexv10w39

 

Exhibit 10.39

PROMISSORY NOTE

			
	$8,500,000.00
	 	April 25th, 2006

     FOR VALUE RECEIVED, EMERGENT FREDERICK LLC, a Maryland limited
liability company (the “Borrower”) promises to pay to the order of HSBC REALTY CREDIT
CORPORATION (USA), a Delaware corporation (hereinafter referred to as the “Bank”) at its
office at 1130 Connecticut Avenue, N.W., 12th Floor, Washington, D, C. 20036, or
at such other
place as the Bank may from time to time direct, the sum of EIGHT MILLION FIVE HUNDRED
THOUSAND and No/100 Dollars ($8,500,000.00), with interest computed daily on the unpaid
principal balance at the Interest Rate (as such term is hereinafter defined), and payable
according
to the repayment schedule set forth herein (the “Loan”). The Loan is made pursuant to a Loan
Agreement of even date herewith (the “Loan Agreement”) among the Borrower, the Bank and
Emergent BioSolutions Inc. (the “Guarantor”). The Loan is guaranteed by a Guaranty of even
date herewith from the Guarantor to the Bank (the “Guaranty”). The Loan is secured by, among
other things, a Purchase Money Deed of Trust, Assignment of Rents and Leases and Security
Agreement of even date herewith! from the Borrower to certain trustees for the benefit of
the
Bank (the “Deed of Trust”). This Note, the Loan Agreement, the Guaranty, the Deed of Trust
and any other documents entered into in connection with the Loan are referred to as the
“Loan
Documents”).

     Interest Rate and Payment Terms

     This Note shall bear interest at a rate per annum (the “Interest Rate”) equal to LIBOR plus
three percent (3%). “LIBOR” means the daily fluctuating rate of interest (rounded upwards, if
necessary to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as
the 3-month London interbank offered rate for deposits in United States Dollars at approximately
11:00 a.m. (London time) on the second preceding Business Day, as adjusted from time to time in
the Bank’s sole discretion for then-applicable reserve requirements, deposit insurance assessment
rates and other regulatory costs (the “Index”). If for any reason such rate is not available, the
term “LIBOR” shall mean the fluctuating rate of interest equal to the rate of interest (rounded
upwards, if necessary to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the
3-month London interbank offered rate for deposits in United States Dollars at approximately
11:00 a.m. (London time) on the second preceding day, as adjusted from time to time in the Bank’s
sole discretion for then-applicable reserve requirements, deposit insurance assessment rates and
other regulatory costs; provided, however, if more than one rate is specified on Reuters Screen
LIBO page, the applicable rate shall be the arithmetic mean of all such rates. Any change in the
rate will take effect on the date of such change in the Index as indicated on Telerate Page 3750.
Interest will accrue on any non-banking day at the rate in effect on the immediately preceding
banking day.

     This Note shall be payable in monthly installments of principal and interest in the amount
required to amortize this Note over twenty (20) years, payable on the 1st day of each
month beginning May 1, 2006, and in one final balloon payment of all accrued interest and
outstanding principal on April       , 2011 (the “Maturity Date”). Upon the Borrower’s
request, the Bank in its sole discretion may agree to extend the Maturity Date for five (5)
additional years.

 

 

     The Interest Rate on this Note: (a) will not exceed applicable legal limits, and in the
event a payment is made by the Borrower or received by the Bank in excess of the applicable legal
limits, such excess payment shall be credited as a payment of principal; and (b) shall be
computed on the basis of 360-day year and charged for the actual number of days elapsed in each
interest calculation period.

     In the event that the Bank shall determine that by reason of circumstances affecting the
interbank Eurodollar market, adequate and reasonable means do not exist for determining LIBOR, or
Eurodollar deposits in the relevant amount and for the relevant maturity are not available to the
Bank in the interbank Eurodollar market, the Bank shall give the Borrower prompt notice of such
determination. If such notice is given, and until such notice is withdrawn, the Interest Rate on
this Noje shall be a rate per annum equal to the Prime Rate plus 0.25%. “Prime Rate” means the
rate per annum from time to time established by the Bank as the Prime Rate and made available by
the Bank at its main office or, in the discretion of the Bank, the base, reference or other rate
then designated by the Bank for general commercial loan reference purposes, it being understood
that such rate is a reference rate, not necessarily the lowest, established from time to time,
whiph serves as the basis upon which effective interest rates are calculated for loans making
reference thereto. If, after the date of this Note, any applicable law, treaty, regulation or
directive, or any change therein or in the interpretation or application thereof, shall make it
unlawful for the Bank to make or maintain any LIBOR loan, the Interest Rate on this Note shall be
a rate per annum equal to the Prime Rate plus 0.25%, for so long as such illegality exists.

     Prepayment

     Upon five (5) business days’ written notice from the Borrower to the Bank, the Borrower may
prepay the outstanding principal balance of this Note, in whole or in part, subject to the
following terms and conditions:

     (a) any prepayment must include payment of all interest accrued and unpaid on the
amount so prepaid as of the date of such prepayment;

     (b) partial prepayment shall not postpone the due date of any subsequent payment,
nor shall it change the amount of any monthly payment otherwise required to be made under this
Note, unless the Bank otherwise agrees in writing and in advance of receipt of such partial
prepayment;

     (c) if the Interest Rate at the time of prepayment has been converted to a fixed rate
pursuant to an ISDA Master Agreement or other interest rate protection agreement (“Master
Agreement”), the Borrower shall pay a prepayment fee equal to the aggregate of any breakage
fees related to such Master Agreement.

     Late Charge

     In the event the Borrower fails to make a payment of principal and/or interest in fully
collected funds within fifteen (15) days after such payment is due, the Borrower shall pay a
late charge to the Bank in an amount equal to five percent (5%) of the overdue installment.

 

 

     Default Interest

     Upon an Event of Default (as such term is hereinafter defined) and until such Event of
Default is cured or this Note is paid in full, this Note shall bear interest at a rate equal to
three percent (3%) per annum above the Interest Rate in effect on the date of such Event of
Default.

     Events of Default and Remedies

     Subject to any applicable notice and cure periods contained in the Loan Documents, each of
the following shall constitute a default (“Event of Default”) under this Note:

     (a) A failure to make a payment of any sum within ten (10) days of when due under
this Note.

     (b) A failure to perform or observe any of the covenants, conditions or terms of this
Note or any other Loan Document.

     (c) Upon the occurrence of an Event of Default or failure to pay the balance hereof
when otherwise due, and notwithstanding the payment of any late charges: (i) all remaining
payments under this Note shall become due and payable together with interest accrued to the date
of payment without notice, at the option of the Bank; (ii) the Borrower shall reimburse the Bank
for any reasonable expenses, costs and attorneys’ fees which the Bank may incur in connection
with the collection of any monies due under this Note or in connection with the enforcement of
any right under this Note or under any of the Loan Documents; and (iii) the Bank may exercise any
or all of the other rights, powers and remedies provided for in any of the Loan Documents, or now
or hereafter existing at law or in equity or by statute or otherwise.

     Miscellaneous

     The Borrower hereby waives demand, presentment for payment, protest, and notice of dishonor,
and agrees that at any time and from time to time and with or without consideration, the Bank
may, without notice to or further consent of the Borrower and without in any manner releasing,
lessening or affecting the obligations of the Borrower: (a) release, surrender, waive,
substitute, settle, exchange, compromise, modify, extend or grant indulgences with respect to:
(i) this Note; and (ii) all or any part of any collateral or security for this Note; or (b) grant
any extension or other postponements of the time of payment hereof.

     Each right, power and remedy of the Bank as provided for in this Note, or now or hereafter
existing at law or in equity or by statute or otherwise, shall be cumulative and concurrent and
shall be in addition to every other right, power or remedy, and the exercise or beginning of the
exercise by the Bank of any one or more of such rights, powers or remedies shall not preclude the
simultaneous or later exercise by the Bank of any or all of such other rights, powers or
remedies.

     No failure or delay by the Bank to insist upon the strict performance of any term, condition
or covenant of this Note, or to exercise any right, power or remedy upon a breach hereof, shall
constitute a waiver of any such term, condition or covenant or of any such breach, nor shall it
preclude the Bank from exercising any such right, power or remedy at any later time

 

 

or times, unless such waiver is in writing signed by an authorized representative of the Bank. If
the Bank accepts any payment after its due date, this does not constitute a waiver of the Bank’s
right to receive timely payment of all other subsequent amounts or to declare a default for the
failure to make any other subsequent payment when due.

     Any payment on this Note coming due on a day on which the Bank is not open to conduct foil
banking business shall be due on the next succeeding business day. Each payment hereunder may be
applied to pay interest, principal, late fees or costs as the Bank, in its sole discretion, may
determine.

     All notices under this Note shall be given as provided in the Loan Agreement.

     The Borrower authorizes the Bank to disburse funds represented by this Note to the Borrower
and agrees that such disbursement shall be deemed to be full and absolute consideration for the
undertaking to make payment hereunder. The Borrower hereby authorizes the Bank to disclose to
any subsidiary or affiliate of the Bank, to any fiduciary institution (as “fiduciary
institution” is defined in Subtitle 3 of Title 1 of the Financial Institutions Article of the
Annotated Code of Maryland, or any successor legislation) or to any banking institution, credit
union or savings and loan association organized under the laws of any State, and hereby
authorizes all subsidiaries and affiliates of the Bank, to disclose to the Bank, the financial
record of the Borrower (as “financial record” is defined in Subtitle 3 of Title 1 of the
Financial Institutions Article of the Annotated Code of Maryland, or any successor legislation).

     THE BORROWER AND THE BANK HEREBY VOLUNTARILY AND KNOWINGLY WAIVE ANY RIGHT THEY MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER PARTY
AGAINST THE OTHER ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE AND THE TRANSACTIONS
CONTEMPLATED HEREIN. THE BORROWER ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE BANK THAT THE
PROVISIONS OF THIS PARAGRAPH CONSTITUTE A MATERIAL INDUCEMENT UPON WHICH THE BANK HAS RELIED, IS
RELYING AND WILL RELY IN MAKING THE LOAN. THE BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE
OR AGENT OF THE BANK (INCLUDING ITS COUNSEL) HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE
BANK WOULD NOT, IN THE EVENT OF LITIGATION, ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL. THE
BORROWER ACKNOWLEDGES THAT IT HAS CONSULTED WITH AN ATTORNEY AND FULLY UNDERSTANDS THE LEGAL
EFFECT OF THE PROVISIONS OF THIS PARAGRAPH.

     This Note shall be governed by and construed under and in accordance with the laws of the
State of Maryland (but not including the choice of law rules thereof). The Borrower hereby
submits to the non-exclusive jurisdiction of any State of Maryland court or Federal court sitting
in the State of Maryland in any action or proceeding arising out of or relating to this Note, and
hereby waives any objection it may have to the laying of venue of any such action or proceeding
in any of said courts and any claim that it may have that any such action or proceeding has been
brought in an inconvenient forum. A final judgment in any such action or proceeding shall be

 

 

conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.

     Whenever used herein, the word “Borrower” or “Bank” shall be deemed to include, as
appropriate, its/his/her respective heirs, personal representatives, successors and assigns. All
words used herein shall be deemed to refer to the singular, plural, masculine, feminine or neuter
as the identity of the person or entity or the context may require.

(Signature Page Follows)

 

 

     IN WITNESS WHEREOF, the Borrower has duly executed this Note under seal as of the date and
year first hereinabove set forth. This instrument may be signed in multiple counterparts.

	 	 	 	 	 	 	 
	 	 	EMERGENT FREDERICK LLC,
	 	 	a Maryland limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Edward J. Arcuri
 

Edward J. Arcuri
	 	(SEAL) 
	 

	 	Title:
	 	Executive Manager	 	 

 

 

CONSENT OF THE GUARANTOR

     The undersigned Guarantor hereby consents to the terms of this Note and acknowledges it has
guaranteed this Note pursuant to the terms of that certain Guaranty executed by the undersigned of
even date herewith.

	 	 	 	 	 	 	 
	 	 	EMERGENT BIOSOLUTIONS
INC., a
 Delaware
corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 /s/ Edward J. Arcuri
	 	(SEAL)
	 

	 	Name:
	 	 

Edward J. Arcuri
	 	 
	 

	 	Title:
	 	 EVP & COO

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