Document:

exv10w3

 

EXHIBIT 10.3

	 	 	 
	 	 	26 August 2002

Dr. Raymond F. Cosgrove

Managing Director, BioReliance Ltd.

Stirling University Innovation Park

Hillfoots Road

Stirling, United Kingdom FK9 4NF

Dear Ray:

I am pleased to provide you with this agreement amending your original offer of
employment dated January 29, 1993, as previously amended by Ms. Robinson’s
letter of January 16, 1996, and Mr. McDonald’s letter of June 6, 2000, as
follows:

Specifically, at paragraph 4. Termination, we henceforth provide the following
agreement which will substitute entirely the paragraph previously in force:

	4.	 	Termination of Employment:
	 
	A.	 	Termination Upon Change In Control: Notwithstanding any other provision
in this Agreement, if there is a “change in control” of BioReliance
Corporation (as hereinafter defined) during the term of this Agreement,
and within twelve (12) months thereafter, either (1) the Executive is
terminated Without Cause (as hereinafter defined) or (2) the Executive’s
responsibilities are significantly reduced and, as a result, the Executive
terminates his employment pursuant to this Agreement, the Executive shall
be entitled to the compensation and benefits set forth below.

	 	(1)	 	Base Compensation: The Company shall pay the Executive
sixteen (16) months of his then current base salary. This
compensation will be paid in two parts, as follows: (a) an initial
lump-sum payment of eight (8) months of base salary will be paid
within ten (10) working days of termination of employment and (b)
beginning six (6) months after termination of employment, equal
monthly payments for eight (8) months thereafter. This second
payment in section (b) will be correspondingly reduced by any base
compensation payments the Executive receives through new employment.
The Executive is obligated to inform the Company, its successors and
assigns, in writing within ten (10) calendar days of his acceptance
of such new employment and include in this notice what his base
compensation and expected start date are. However, if the
Executive’s base compensation at such new employment is equal to or
exceeds his prior base salary at the Company, the Executive may
simply confirm this fact in the notice in lieu of disclosing the
actual new base compensation figure.

 

 

	 	(2)	 	Stock Options: The disposition of any and all stock options
granted by BioReliance Corporation to the Executive will be governed
by the 1997 Incentive Plan (as amended and restated).
	 
	 	(3)	 	Bonus Compensation: The Company shall pay the Executive,
within thirty (30) calendar days of termination, his performance
bonus, pro-rated to reflect the date of termination.
	 
	 	(4)	 	Medical Benefits: If the Executive elects to continue
medical benefits coverage under the UK Company’s Private Healthcare
program, the Company will pay the applicable premium for a period of
the lesser of sixteen (16) months or until such time as the
Executive obtains other employment that provides private healthcare
coverage, provided the Executive and any of his eligible dependants
elect the UK Company’s Private Healthcare program. This provision is
otherwise subject to all applicable UK Company Private Healthcare
program continuation requirements and does not alter the Company’s
right to amend or terminate its medical plan.
	 
	 	(5)	 	Other Benefits: The Company will continue to provide other
benefits current at the time of termination, e.g. fully expensed
lease car, for a period of the lesser of sixteen (16) months or
until such time as the Executive obtains other employment that
provides similar benefits.

	 	 	A “change in control” for purpose of this Agreement shall be deemed to
have occurred if BioReliance Corporation is subject to an acquisition in
accordance with Section 2.12 (1) of BioReliance Corporation’s 1997
Incentive Plan (as amended and restated), which is attached hereto as
Exhibit 1.
	 
	 	 	The privileges, compensation, and benefits set forth in this section,
Termination Upon Change In Control, survive the expiration of this
Agreement as long as there is a “change in control” as herein defined
during the term of this Agreement.
	 
	 	 	All compensation paid by the Company will be subject to all appropriate
UK tax laws.
	 
	B.	 	Termination Other Than Upon Change In Control
	 
	 	 	Termination by the Executive: The Executive may terminate his employment
upon ninety (90) days written notice to the President and CEO. Unless
otherwise provided herein, if the Executive terminates his employment,
the Executive shall only be entitled to base compensation through the
last day actually worked as well as any bonus compensation for which the
work period and performance criteria have been fully met. The Board may
provide the Executive with additional compensation, if the Board in its
discretion deems such additional compensation warranted. Also, the
disposition of any and all stock options granted by BioReliance
Corporation to the Executive will be governed by the 1997 Incentive Plan
(as amended and restated).

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	 	 	Termination by the Company: The Executive’s employment may be terminated
by the Company only on two bases: (1) Cause or (2) Without Cause.

	 	(1)	     Cause: As used in this Agreement, “Cause” shall mean that the
Executive:

				
	 	(a)	 	committed an act or acts of personal dishonesty
intended to result in the Executive’s personal enrichment at
the expense of the Company, and which constitute(s) fraud,
embezzlement, grand larceny or any felonious act;
	 
	 	(b)	 	materially failed or refused to perform the
Executive’s essential duties and obligations as an employee of
the Company;
	 
	 	(c)	 	committed an act of willful misconduct;
	 
	 	(d)	 	was convicted of a felony or other serious crime;
	 
	 	(e)	 	has engaged in the unlawful use of narcotics;
	 
	 	(f)	 	engaged in abusive use of alcohol to a degree, or
in a manner, that would materially and adversely affect the
performance of the Executive’s assigned work or degrade the
reputation of the Company;
	 
	 	(g)	 	violated the terms of the Confidentiality, Trade
Secrets and Noncompetition Agreement he signed on 6 September
1999;
	 
	 	(h)	 	violated or breached the terms of this Agreement;
or
	 
	 	(i)	 	is unable to perform the essential functions of
his position due to disability, as set forth below, or due to
death.

				
	 	 	 	In accordance with these definitions of Cause, the Board of
Directors, or a delegated committee of the Board, will in its sole
discretion decide whether the Executive shall be terminated for
Cause after affording the Executive an opportunity to be heard on
the matter. The Board, or the delegated committee of the Board,
will in its sole discretion determine the time, place, and manner
of the opportunity for the Executive to be heard, but to the extent
practicable any such meeting will take place in Montgomery County,
Maryland, USA during regular business hours. If the Executive
fails to appear or to follow the manner of opportunity afforded by
the Board or its committee, the Board, or the delegated committee,
may render its decision without hearing the Executive’s views.
	 
	 	 	 	Disability: If the Executive is unable to perform the essential
functions of his position due to illness, injury, or incapacity for
a period of more than fourteen

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	 	 	 	(14) weeks, the compensation otherwise payable to him under this
Agreement shall cease and the Company may terminate his employment
unless the Board determines otherwise or the Executive is able to
perform the essential functions of his position with reasonable
accommodation.
	 
	 	 	 	Effect on Future Compensation – Termination for Cause: In the
event Executive is terminated for Cause, Executive will be entitled
to no future compensation from the Company and any and all stocks
options granted by BioReliance Corporation to the Executive will be
disposed of in accordance with the 1997 Incentive Plan (as amended
and restated). Moreover, the Executive will not earn any
additional compensation after the effective date of such
termination.

	 	 	Any reason for termination other than those set forth above will be
deemed to be Without Cause.

	 	(2)	 	Without Cause: If the Executive is terminated Without Cause
or the Executive’s responsibilities are significantly reduced and,
as a result, the Executive terminates his employment pursuant to
this Agreement, the Executive shall be entitled to the compensation
and benefits set forth below.
	 
	 	 	 	Effect on Future Compensation – Termination Without Cause: In the
event the Executive is terminated Without Cause and there has not
been a “change in control” as defined in this Agreement, the
Executive will be entitled to receive the following compensation
and benefits:

				
	 	(a)	 	notice of at least twelve (12) months of
continued employment, or
	 
	 	(b)	 	up to twelve (12) months pay in lieu of notice,
or
	 
	 	(c)	 	a combination of the two.

	 	 	 	According to Company policy, such pay in lieu of notice will be
paid through the normal payroll and will cease upon the Executive
becoming gainfully employed elsewhere. Regular healthcare benefits
will continue at the Company’s expense throughout the duration of
approved pay in lieu of notice. Any and all stocks options granted
by BioReliance Corporation to the Executive will be disposed of in
accordance with the 1997 Incentive Plan (as amended and restated).

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As a new paragraph, 7. Arbitration, we henceforth provide the following
agreement:

	7.	 	Arbitration:
	 
	 	 	Notwithstanding any other provision in this Agreement, any claim or
controversy relating to or arising out of this Agreement shall be
resolved exclusively by arbitration in accordance with the commercial
rules then obtaining of the American Arbitration Association. This
Arbitration provision, including any challenges to its enforceability, is
governed by the Federal Arbitration Act. The arbitration shall take
place in Montgomery County, Maryland. The Company and Executive shall
bear separately their respective attorney’s fees. The Company shall bear
the cost of the arbitration and any fees required by the commercial rules
then obtaining of the American Arbitration Association.

 

Sincerely,

/s/ Capers W. McDonald

Capers W. McDonald

President and CEO

Copy: William Gedale; Chairman, Compensation Committee of the Board

Please indicate your acceptance of this amendment by signing two attached
duplicates of this letter and returning one to my office in the original and
retaining the other in the Company’s UK offices also in the original.

Acceptance:

 

 

	 	 	 
	/s/ Ray Cosgrove	 	30 August 2002
	
	 	

	(signature)	 	 (date)

 

 

 

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	 	 	June 6, 2000

Dr. Raymond F. Cosgrove

Managing Director, BioReliance Ltd.

Stirling University Innovation Park

Hillfoots Road

Stirling, United Kingdom FK9 4NF

Dear Ray,

     I am pleased to provide you with this letter agreement amending your
original offer of employment dated January 29, 1993, and amended by Ms.
Robinson’s letter of January 16, 1996, as follows:

     Specifically, at paragraph 4. Termination. we henceforth provide the
following agreement which will substitute entirely the paragraph previously in
force:

	4.	 	Termination
	 
	 	 	Your decision to voluntarily resign from your position must provide the
Company with a minimum of ninety (90) days notice. Likewise, a Company
initiated termination will include either (a) notice of at least twelve
(12) months of continued employment, or (b) up to twelve (12) months pay
in lieu of notice, or (c) a combination of the two. According to Company
policy, such pay in lieu of notice will be paid through the normal
payroll and will cease upon your becoming gainfully employed elsewhere.
Regular health care benefits will continue at Company expense throughout
the duration of approved pay in lieu of notice.

Sincerely yours,

/s/ Capers W. McDonald

Capers W. McDonald

President and CEO

	 	 	 
	Copies:	 	William Gedale; Chairman, Compensation Committee

Ralph Adams; Director, Human Resources (U.S.)

 

	 	 	 
	 	 	Life Sciences Center

9900 Blackwell Road • Rockville • Maryland 20850

(301) 738-1000 • fax (301) 738-1036

January 16, 1996

Raymond F. Cosgrove, Ph.D.

Managing Director

Microbiological Associates, Ltd.

Stirling University – Innovation Park

Hillfoots Road

Stirling

Scotland FK9 4NF

Dear Ray,

We are extremely pleased with your contributions to MA Ltd. over the past three
years and are therefore providing you with this letter agreement to amend your
original offer of employment dated January 29, 1993.

Specifically, at paragraph 4. Termination, we henceforth provide the following
agreement which will substitute entirely the prior paragraph:

	4.	 	Termination
	 
	 	 	Your decision to voluntarily resign from your position must provide MA
with a minimum of ninety (90) days notice. Likewise, a Company initiated
termination will include either (a) notice of at least one hundred eighty
(180) days of continued employment, or (b) up to one hundred eighty (180)
days pay in lieu of notice, or (c) a combination of the two. According
to Company policy, such pay in lieu of notice will be paid through the
normal payroll and will cease upon your becoming gainfully employed
elsewhere. Regular health care benefits will continue at Company expense
throughout the duration of approved pay in lieu of notice.

We feel this agreement represents our recognition of your increased
responsibilities since your initial offer of employment, and we trust this is
acceptable to you.

Sincerely,

/s/ Constance J. Robinson

Constance J. Robinson

Director of Human Resources

CJR:rlb

 

	 	 	 
	 	 	Life Sciences Center

9900 Blackwell Road • Rockville • Maryland 20850

(301) 738-1000 • fax (301) 738-1036

January 29, 1993

Raymond F. Cosgrove, Ph.D.

3 Marlowe Road

Wallasey,

Merseyside, L44 3BZ

United Kingdom

Dear Ray,

I am extremely pleased to provide you with this offer of employment. Upon
acceptance, I believe we have embarked upon what will prove to be a very
fruitful and enjoyable relationship.

This letter sets forth our agreement for your employment as follows:

	1.	 	Responsibilities:

You will be employed as Executive Director of MA International, Ltd. (MAI),
reporting to me as President and Chief Executive Officer of Microbiological
Associates, Inc. (MA). A description of the managing and operating
responsibilities of the position are attached to this letter.

As Executive Director, you will devote your full time and best efforts to the
business and affairs of MAI and agree that you will not perform services for
remuneration for any other firm or organization, whether or not in competition
with MA or MAI, without my consent as MA President.

	2.	 	Compensation:

Base Salary: You will be paid an initial base salary of £42,000 per year under
MAI’s normal payroll schedule.

Performance Bonus: You will be eligible to participate in MA Corporate bonus
and profit sharing plans, as approved annually by the MA Board of Directors,
based on acceptance performance as mutually determined.

 

Stock Options: The Board of Directors will be petitioned to approve an initial
grant of qualified incentive stock options for you to purchase 40,000 shares of
MA’s authorized common stock at an exercise price at the Fair Market Value as
established by the Board.

The exercise price and all other terms governing the grant of these options
will be in accordance with MA’s then current qualified stock option plan and
stock option agreement.

Annual Reviews: Your base salary will be reviewed annually with appropriate
increases based on performance versus position requirements and mutually agreed
objectives.

Benefits: You will be eligible to participate in and receive benefits under
all present and future life, disability, medical, and pension plans generally
made available to all MAI employees.

Four weeks of personal vacation and ten paid holidays will be made available to
you each year. This includes nine standard U.K. holidays and one personal day
annually.

Relocation assistance will be provided up to maximum of 17% of your initial
base salary. In the event you should voluntarily terminate your employment
with MAI within twelve (12) months of your start date, you will be responsible
for repaying to MAI the costs paid by the Company relating to your relocation.

For your exclusive use, MAI will lease an automobile and reimburse you for the
costs of maintenance and insurance. Through June 1995, this will be the 1992
BMW 520iSE currently on lease to the Company. Thereafter, an appropriate lease
cost level will be determined for an automobile of your choosing.

Additional details about these plans are described in the attached Benefits
Summary and in individual plan statements to be provided upon your acceptance.

	3.	 	Start Date:

You have agreed to start work as soon as practical, within three weeks from
your date of signing this letter agreement. We should agree on a specific date
as soon as possible.

	4.	 	Termination:

Your decision to voluntarily resign from your position must provide MAI with a
minimum of sixty (60) days notice. Likewise, a company initiated termination
will include sixty (60) days pay in lieu of notice.

 

	5.	 	Confidentiality Agreement:

During your employment with MAI you may not directly or indirectly engage in,
own an interest in, or enter the employment of or act as an agent, advisor, or
consultant to any person or business entity that is, or is about to become
directly involved in competition to MAI or MA’s then current businesses.

You have agreed to execute the Company’s Employee Confidentiality and Trade
Secrets Agreement, as attached, as part of your acceptance.

	6.	 	Timing of Offer:

This offer is valid through Friday, February 12, 1993. Please complete the
attached Confidentiality Agreement and sign your acceptance of this offer on
the enclosed copy and return both to my office prior to the above date.

When you have signed and delivered the Company copies of these documents to me
or to Mr. Robin Orr at MAI, you may elect to also sign out your assigned
automobile at any time prior to commencing full time work.

Ray, I am excited about your joining MAI. Your strengths will add
significantly to the Corporation.

Sincerely,

/s/ Capers W. McDonald

Capers W. McDonald

President and Chief Executive Officer

Attachments

 

Accepted and agreed:

	 	 	 	 	 
	 	/s/ Ray Cosgrove	 	1st Feb 1993	 
	
	 	
	 
	CWM/cjkexv10w4

 

EXHIBIT 10.4

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is effective the 12th day of August, 2002 by and between
BioReliance Corporation, a Delaware corporation with principal offices located
at 14920 Broschart Road, Rockville, Maryland 20850, and all of its subsidiary
companies and its successors or assigns (the “Corporation”) and Allan J.
Darling, Ph.D. (the “Executive”).

	1.	 	POSITION AND EMPLOYMENT RELATIONSHIP:

	 	1.	 	The Executive is currently employed as the Vice President,
U.S. Biosafety Testing (“Vice President”). Commencing on the
effective date of this Agreement for a term of twelve (12) months
(hereinafter referred to as “Term”), the Corporation hereby agrees
to continue to employ the Executive in his current position or a
comparable position consistent with his qualifications and
experience, and the business needs of the Corporation. At the end
of this twelve (12) month Term, this Agreement and all its
provisions will renew once for another Term of twelve (12) months,
unless ninety (90) days prior to the end of the original Term, the
Executive or the President and Chief Executive Officer of the
Corporation provides written notice to the other of an intent not to
renew the Agreement.
	 
	 	2.	 	Such employment relationship is not at-will and is instead
governed by the terms and conditions set forth in this Agreement.
The Employment relationship, however, may be terminated by the
Corporation or the Executive prior to the expiration of this twelve
(12) month Term pursuant to sections E, F, I, and J respectively of
this Agreement.
	 
	 	3.	 	As Vice President, the Executive shall perform such duties as
may be assigned to the Executive from time to time by the
Corporation’s President and Chief Executive Officer (“CEO”) or the
Corporation’s Board of Directors (“Board”), including, but not
limited to the following: developing and executing plans toward
attainment of current and long-range objectives, including achieving
revenue, revenue growth and income objectives, maximum return on
invested capital, and quality, client satisfaction and employee
development goals; developing financial plans and budgets;
overseeing all reporting functions; coordinating activities with
other vice presidents and supporting departmental directors;
supporting Corporate activities including market analyses, strategic
planning, R&D planning and project selection, engagement and
assessments of potential partners, and the like; supporting the
evaluation and analysis of acquisition opportunities, if any;
developing and documenting novel or typical service programs,
procedures, methodologies and the like; meeting with clients,
understanding their product and production methods and developing
timely and cost-effective strategies acceptable to them and to
various national regulatory authorities; designing major projects
and, as appropriate, writing

Page 1 of 9

 

	 	 	 	major project plans; closing key proposals; directing complex
technical activities, in particular projects of significant scale
and scope; solving challenging technical, regulatory and service
problems; building client relationships; and anticipating follow-on
client engagements.

	2.	 	LIMITATION ON OUTSIDE ACTIVITIES: The Executive shall devote his full
employment energies, interest, abilities and time to the performance of
the obligations hereunder and shall not, without written consent of the
Corporation, through its President and CEO, render to others any service
of any kind for compensation, and in addition, shall not engage in any
activity which conflicts or interferes with the performance of the
Executive’s duties hereunder.
	 
	3.	 	COMPENSATION: For all services rendered by Executive pursuant to this
Agreement, Corporation will pay to Executive, and the Executive will
accept as full compensation hereunder, the following:

	 	1.	 	Base Salary: The Executive’s annual base salary (“salary”)
during calendar year 2002, as determined by the Compensation
Committee of the Board, shall be two hundred and ten thousand
dollars ($210,000). The salary will be subject to all appropriate
federal, state and local withholding requirements and will be
payable in equal bi-weekly installments. The Executive’s salary
during a subsequent calendar year during the Term of this Agreement
will be determined by the Compensation Committee of the Board based
upon the recommendation of the President and CEO, but in no event
shall the Executive’s salary be less than the salary he received
during the prior calendar year.
	 
	 	2.	 	Performance Bonus: If the Executive remains in the employ of
the Corporation through December 31 of each year during the Term of
this Agreement, the Executive shall be eligible for a performance
bonus (“bonus”) based on individual and corporate performance
factors relating to mutually acceptable objectives. Executive’s
bonus will be subject to all appropriate federal, state and local
withholding requirements. The exact amount of the bonus will be at
the discretion of the Compensation Committee of the Board. Unless
otherwise specified in this Agreement, the Corporation will be
obligated to pay the Executive the bonus as long as the Executive
(a) does not resign from the Corporation before December 31 of each
year, or (b) is not terminated for Cause (as hereinafter defined),
or (c) does not fail to meet his individual performance objectives.
This bonus may also be paid out on a quarterly basis at the
discretion of the Compensation Committee of the Board.
	 
	 	3.	 	Stock Options: As an inducement to remain in the employ of
the Corporation and as an incentive to build the Corporation’s
value, the Corporation may grant to the Executive additional stock
options. The number of option shares to be granted and their timing
and other terms will be determined by the Compensation Committee of

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	 	 	 	the Board and governed by the Corporation’s 1997 Incentive Plan (as
adopted May 28, 1997 and amended and restated September 24, 1997,
May 21, 1998, May 13, 1999, and June 10, 2002) [hereinafter
referred to as “1997 Incentive Plan”], which is attached hereto as
Exhibit 1.

	D.	 	BENEFITS AND PERQUISITES:

	 	1.	 	Medical and Other Insurance Coverage: The Corporation shall
provide such medical and other insurance coverage to the Executive
to the extent and on the terms that such benefits are made available
to other similarly situated employees. This provision does not
alter the Corporation’s right to modify or eliminate any employee
benefit plan from time to time and does not guarantee the
continuation of any kind or level of benefit or perquisite.
	 
	 	2.	 	Paid Personal Leave: The Executive shall receive vacation,
sick and personal
holiday leave pursuant to the Corporation’s Paid Personal Leave Policy
(“PPL”) under the schedule for an Executive of the Company, which is attached
hereto as Exhibit 2 and incorporated herein by reference.
	 
	 	3.	 	Other Perquisites and Benefits: The Corporation will provide
the Executive with appropriate office space, as it deems necessary,
and will provide telephone, computer, email and internet access as
required to perform the Executive’s duties during the term of his
employment.

	E.	 	COMPENSATION UPON CHANGE IN CONTROL: Notwithstanding any other provision
in this Agreement, if there is a “change in control” of the Corporation
(as hereinafter defined) during the Term of this Agreement, and within
twelve (12) months thereafter, either (1) the Executive is terminated
Without Cause (as hereinafter defined in section F) or (2) the Executive’s
responsibilities are significantly reduced and, as a result, the Executive
terminates his employment pursuant to section J, the Executive shall be
entitled to the compensation and benefits set forth below.

	 	1.	 	Base Compensation: The Corporation shall pay the Executive
sixteen (16) months of his then current base salary. This
compensation will be paid in two parts, as follows: (a) an initial
lump-sum payment of eight (8) months of base salary will be paid
within ten (10) working days of termination of employment and (b)
beginning six (6) months after termination of employment, equal
monthly payments for eight (8) months thereafter. This second
payment in section (b) will be correspondingly reduced by any base
compensation payments the Executive receives through new employment.
The Executive is obligated to inform the Corporation, its successors
and assigns, in writing within ten (10) calendar days of his
acceptance of such new employment and include in this notice what
his base compensation and expected start date are. However, if the
Executive’s base compensation at such new employment 

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	 	 	 	is equal to or exceeds his prior base salary at the Corporation, the
Executive may simply confirm this fact in the notice in lieu of
disclosing the actual new base compensation figure.
	 
	 	2.	 	Stock Options: The disposition of any and all stock options
granted by the Corporation to the Executive will be governed by the
1997 Incentive Plan.
	 
	 	3.	 	Bonus Compensation: The Corporation shall pay the Executive,
within thirty (30) calendar days of termination, his performance
bonus, pro-rated to reflect the date of termination.
	 
	 	4.	 	Medical Benefits: If the Executive elects to continue medical
benefits coverage under COBRA, the Corporation will pay the
applicable COBRA premium for a period of the lesser of eighteen (18)
months or until such time as the Executive obtains other employment
that provides medical benefits coverage, provided the Executive and
any of his eligible dependents elect COBRA continuation coverage.
This provision is otherwise subject to all applicable COBRA
continuation requirements and does not alter the Corporation’s right
to amend or terminate its medical plan.
	 
	 	5.	 	Other Benefits: If the Executive is involved in pre-approved
course work eligible for reimbursement under the Corporation’s
Tuition Assistance Program (“Program”) or has an education
assistance loan outstanding under that Program, the Corporation will
reimburse any remaining balance due on the course work and forgive
any indebtedness in connection with the outstanding education
assistance loan. This provision is otherwise subject to all
applicable Tuition Assistance Program requirements and does not
alter the Corporation’s right to amend or terminate its Program.

	
A “change in control” for purpose of this Agreement shall be deemed to
have occurred if the Corporation is subject to an acquisition in
accordance with Section 2.12 (a) of the Corporation’s 1997 Incentive
Plan, which is attached hereto as Exhibit 1.

The privileges, compensation, and benefits set forth in section E survive
the expiration of this Agreement as long as there is a “change in
control” as herein defined during the Term of this Agreement.

All compensation paid by the Corporation under section E will be subject
to all appropriate federal, state and local withholding requirements.
Also, notwithstanding anything contained in this Agreement to the
contrary, to the extent that any payment or distribution of any type to
or for the benefit of the Executive by the Corporation, any affiliate of
the Corporation, any person who acquires ownership or effective control
of the Corporation or ownership of a substantial portion of the
Corporation’s assets (within the meaning of Section 280G of the

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 Internal Revenue Code of 1986 as amended (the “Code”), and the
regulations thereunder), or any affiliate of such person, whether paid or
payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (the “Total Payment”), is or will be subject to
the excise tax imposed under Section 4999 of the Code (the “Excise Tax”),
then the Total Payments shall be reduced (but not below zero) if and to
the extent necessary so that no portion of the Total Payments will be
subject to the Excise Tax. The Corporation shall reduce or eliminate the
Total Payments by first reducing or eliminating the portion of the Total
Payments which is payable in cash and then by reducing or eliminating
payments which are not payable in cash, in each case in reverse order
beginning with payments or benefits which are paid the farthest in time
from the determination that the Total Payments need to be reduced. All
determinations required to be made under this provision shall be made by
a nationally recognized accounting firm that is the Corporation’s outside
auditor at the time of such determinations.

Any dispute between the Executive and the Corporation, it successors and
assigns, involving section E will be resolved by arbitration in
accordance with section Q below, except any 280G determination made by
Corporation’s outside auditor shall be binding, final, and conclusive
upon the Corporation and the Executive.

	F.	 	TERMINATION OF EMPLOYMENT: During the Term of this Agreement,
Executive’s employment is not at-will and may be terminated by the
Corporation only on two bases: (1) Cause; or (2) Without Cause. As used
in this Agreement, “Cause” shall mean that the Executive:

	 	(1)	 	committed an act or acts of personal dishonesty
intended to result in the Executive’s personal enrichment at
the expense of the Corporation, and which constitute(s) fraud,
embezzlement, grand larceny or any felonious act;
	 
	 	(2)	 	materially failed or refused to perform the
Executive’s essential duties and obligations as an employee of
the Corporation;
	 
	 	(3)	 	committed an act of willful misconduct;
	 
	 	(4)	 	was convicted of a felony or other serious crime;
	 
	 	(5)	 	has engaged in the unlawful use of narcotics;
	 
	 	(6)	 	engaged in abusive use of alcohol to a degree, or
in a manner, that would materially and adversely affect the
performance of the Executive’s assigned work or degrade the
reputation of the Corporation;

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	 	(7)	 	violated the terms of the Confidentiality, Trade
Secrets and Noncompetition Agreement he signed on March 1,
1999;
	 
	 	(8)	 	violated or breached the terms of this Agreement;
or
	 
	 	(9)	 	is unable to perform the essential functions of
his position due to disability, injury, or illness as set
forth in section I below or due to death.

	
In accordance with these definitions of Cause, the Board, or a delegated
committee of the Board, will in its sole discretion decide whether the
Executive shall be terminated for Cause after affording the Executive an
opportunity to be heard on the matter. The Board, or the delegated
committee of the Board, will in its sole discretion determine the time,
place, and manner of the opportunity for the Executive to be heard, but
to the extent practicable any such meeting will take place in Montgomery
County, Maryland during regular business hours. If the Executive fails
to appear or to follow the manner of opportunity afforded by the Board or
its committee, the Board, or the delegated committee, may render its
decision without hearing the Executive’s views.

Any reason for termination other than those set forth above will be
deemed to be Without Cause.

	G.	 	TERMINATION WITHOUT CAUSE — EFFECT ON FUTURE COMPENSATION: In the event
Executive is terminated Without Cause and there has not been a “change in
control” as defined in section E, Executive will be entitled to receive
the following compensation and benefits:

	 	1.	 	Base Compensation: The Corporation shall pay the Executive
his then current salary for the remaining Term of this Agreement or
for a period of six (6) months, which ever period is greater. Such
compensation shall be paid in equal monthly payments and will be
subject to all appropriate federal, state and local withholding
requirements.
	 
	 	2.	 	Stock Options: The disposition of any and all stock options
granted by the
Corporation to the Executive will be governed by the 1997 Incentive
Plan.
	 
	 	3.	 	Bonus Compensation: The Corporation shall pay the Executive,
within thirty (30) calendar days of termination, his performance
bonus, pro-rated to reflect the date of termination.
	 
	 	4.	 	Medical Benefits: If the Executive elects to continue
medical benefits coverage under COBRA, the Corporation will pay the
applicable COBRA premium for a period of the lesser of eighteen (18)
months or until such time as the Executive obtains other employment
that provides medical benefits coverage, provided the

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	 	 	 	Executive and any of his eligible dependents elect COBRA
continuation coverage. This provision is otherwise subject to all
applicable COBRA continuation requirements and does not alter the
Corporation’s right to amend or terminate its medical plan.
	 
	 	5.	 	Other Benefits: If the Executive is involved in pre-approved
course work eligible for reimbursement under the Corporation’s
Tuition Assistance Program (“Program”) or has an education
assistance loan outstanding under that Program, the Corporation will
reimburse any remaining balance due on the course work and forgive
any indebtedness in connection with the outstanding education
assistance loan. This provision is otherwise subject to all
applicable Tuition Assistance Program requirements and does not
alter the Corporation’s right to amend or terminate its Program.

	H.	 	TERMINATION WITH CAUSE — EFFECT ON FUTURE COMPENSATION: In the event
Executive is terminated for Cause, Executive will be entitled to no future
compensation from the Corporation and any and all stocks options granted
by the Corporation to the Executive will be disposed of in accordance with
the 1997 Incentive Plan. Moreover, the Executive will not earn any
additional compensation after the effective date of such termination.
	 
	I.	 	DISABILITY: If the Executive is unable to perform the essential
functions of his position due to illness, injury, or incapacity for a
period of more than twelve weeks following the use of all available Paid
Personal Leave (“PPL”), the compensation otherwise payable to him under
this Agreement shall cease and the Corporation may terminate his
employment unless the Board determines otherwise or the Executive is able
to perform the essential functions of his position with reasonable
accommodation.
	 
	J.	 	TERMINATION OF EMPLOYMENT BY EXECUTIVE: Executive may terminate his
employment upon thirty (30) days written notice to the President and CEO.
Unless otherwise provided herein, if the Executive terminates his
employment, the Executive shall only be entitled to base compensation
through the last day actually worked as well as any bonus compensation for
which the work period and performance criteria have been fully met. The
Board may provide the Executive with additional compensation, if the Board
in its discretion deems such additional compensation warranted. Also, the
disposition of any and all stock options granted by the Corporation to the
Executive will be governed by the 1997 Incentive Plan.
	 
	K.	 	CONFIDENTIALITY AND NONCOMPETITION: By signing below, the Executive
acknowledges his ongoing and continuing obligation to abide by the
Confidentiality, Trade Secrets and Noncompetition Agreement that he
executed on March 1, 1999 (“Trade Secrets Agreements”), which is attached
hereto as Exhibit 3 and incorporated herein by reference.

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	L.	 	NO PRIOR AGREEMENTS: The Executive represents and warrants that he is
not a party or otherwise subject to or bound by the terms of any contract,
agreement or understanding which in any manner would limit or otherwise
affect his ability to perform his obligations hereunder. The Executive
further represents and warrants that his employment with the Corporation
will not require the disclosure or use of any confidential information
belonging to prior employers or to other persons or entities. The
Executive understands that the Corporation does not expect or desire and
in fact disapproves of and forbids the Executive to use or disclose, in
the performance of his duties for the Corporation, any such confidential
information belonging to prior employers or other persons or entities.
	 
	M.	 	ASSIGNMENT: This Agreement is personal to Executive and may not be
assigned in any way by Executive without prior written consent by the
Board of Directors of the Corporation. Any attempted assignment by
Executive will be void. Notwithstanding anything in this section to the
contrary, however, this Agreement may be assigned by the Corporation to
any parent, subsidiary, successor, or affiliate entity. The rights and
obligations under this Agreement will inure to the benefit of and will be
binding upon the heirs, legatees, administrators, and personal
representatives of Executive and upon the successors, representatives, and
assigns of the Corporation.
	 
	N.	 	ILLEGAL OR INVALID PROVISION: The parties intend for all provisions of
this Agreement to be enforced and enforceable to the fullest extent
permitted by law. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under present or future laws in effect
during the term hereof, however, that provision will be fully severable.
This Agreement will be construed and enforced as if such illegal, invalid,
or unenforceable provision had never comprised a part hereof, and the
remaining provisions will remain in full force and effect and will not be
affected by the illegal, invalid, or unenforceable provision or by its
severance from this Agreement. Furthermore, in lieu of each such illegal,
invalid, or unenforceable provision, there will be added automatically, as
a part of this Agreement, a provision as similar in terms to such illegal,
invalid, or unenforceable provision as may be possible and be legal,
valid, and enforceable.
	 
	O.	 	GOVERNING LAW: This Agreement shall be construed and governed by the
laws of the State of Maryland without regard to any conflict of laws rules
or provisions.
	 
	P.	 	ENTIRE AGREEMENT: This Agreement constitutes the entire Agreement
between the Corporation and the Executive. This Agreement may not be
changed orally, but only by an agreement in writing signed by the parties.
This Agreement supersedes all prior agreements, discussions or statements
regarding the Executive’s employment, except for the Confidentiality,
Trade Secrets and Noncompetition Agreement attached hereto as Exhibit 3,
which will survive.
	 
	Q.	 	ARBITRATION: Notwithstanding any other provision in this Agreement, any
claim or controversy relating to or arising out of this Agreement shall be
resolved exclusively by

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	 	 	arbitration in accordance with the commercial rules then obtaining of the
American Arbitration Association. This Arbitration provision, including
any challenges to its enforceability, is governed by the Federal
Arbitration Act. The arbitration shall take place in Montgomery County,
Maryland. The Corporation and Executive shall bear separately their
respective attorney’s fees. The Corporation shall bear the cost of the
arbitration and any fees required by the commercial rules then obtaining
of the American Arbitration Association.
	 
	R.	 	MUTUAL UNDERSTANDING: Each party has read this entire Agreement, fully
understands the contents hereof, has had the opportunity to obtain
independent advice as to its legal effect, and is under no duress or
obligation of any kind to execute it. This Agreement reflects the mutual
understanding of the parties with the respect to all subject matters
addressed herein and will be construed accordingly.

BioReliance Corporation

	 	 	 	 	 	 	 
	By:	 	
/s/ William J. Gedale
	 	By:
	 	/s/Allan J. Darling
	 	

	 	 	

	 	 	
William J. Gedale

Chairman, Compensation Committee

Board of Directors
	 	 	 	Allan J. Darling, Ph.D.

Address: 14920 Broschart Road

Rockville, MD 20850

	 	 	 	 	 	 	 
	Date:	 	
August 26, 2002
	 	Date:
	 	August 12, 2002
	 	

	 	 	

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