Document:

exv10w35

 

Exhibit 10.35

Fuad El-Hibri

August 9, 2006

Dear Fuad:

After careful consideration, Emergent BioSolutions Inc. (the “Company”) has decided to implement a
Severance and Termination Protection Program (the “Program”) to recognize the valuable services
that certain employees have provided, and will continue to provide, to the Company and its
affiliates. You are eligible to participate in the Program, provided that you make the agreements
and acknowledgements set forth below, including that (1) all offer letters and employment
agreements between you and the Company (and/or its affiliates), including any amendments, are
terminated and (2) you will comply with the terms and conditions set forth in Exhibit I hereto, as
amended. Any indemnification agreement, stock option agreement, shareholder agreement,
confidentiality obligations, and invention assignment agreements that you may have with the Company
or its affiliates are not affected by this letter or by your participation in the Program and
remain in full force and effect.

You have received a summary of the Program and a full copy of the Program itself. Please review
the Program details carefully. If you elect to become a participant in the Program, please sign
below and return the signed copy to Paula Lazarich, Vice President, Human Resources, no later than
Friday, August 11, 2006. Please contact Paula at 301-944-0180 or me at 301-944-0107 if you have
any questions.

Sincerely,

/s/ Daniel Abdun-Nabi

Daniel Abdun-Nabi

Senior Vice President, Corporate Affairs

General Counsel

As of the date set forth below, I acknowledge and agree that:

	(1)	 	I am electing to become a participant in, and to be subject to the terms and conditions of,
the Program; and
	 
	(2)	 	All offer letters and employment agreements between the Company and/or its affiliates and me
are hereby terminated, and, as a result:

	 	a.	 	I have no employment contract (oral or written) with the Company or its
affiliates governing the terms and conditions of my employment;
	 
	 	b.	 	I am an at-will employee, and my employer or I may terminate my employment at
any time for any reason or for no reason;
	 
	 	c.	 	My compensation is not governed by an employment agreement with the Company or
its affiliates but, instead, is governed by my employer’s general benefit plans, as
they may be amended from time to time, unless the Company notifies me otherwise in
writing;
	 
	 	d.	 	the Company and its affiliates have no liability or obligations to me under my
terminated employment agreement(s); and

	(3)	 	I will comply with the terms and conditions of Exhibit I hereto, as amended, including the
non-compete and non-solicitation provisions.

	 	 	 	 	 	 	 	 	 
	 

	 	/s/ Fuad El-Hibri
 

	 	 	 	8/9/06
 

	 	 
	 

	 	Fuad El-Hibri
	 	 	 	Dated	 	 

 

 

	 	 	 
	Mr. El-Hibri

August 9, 2006

Page 2

	 	

EXHIBIT I

(1) Nonsolicitation; Noncompete. I agree that, during my employment by the Company or any
Affiliate (each as defined in the Program) and for a period of eighteen (18) consecutive months
after my employment ceases for any reason, I shall not, directly or indirectly,

(i) either alone or in association with others, (A) induce, counsel, advise, solicit or encourage,
or attempt to induce, counsel, advise, solicit or encourage any employee to leave the employ of the
Company, or any of its Affiliates, or accept employment with any other person or entity, (B) induce
counsel, advise, solicit or encourage, or attempt to induce, counsel, advise, solicit or encourage
any person who at the time of such inducement, counseling, advice, solicitation or encouragement
had left the employ of the Company, or any of its Affiliates, within the previous six (6) months to
accept employment with any person or entity besides the Company, or any of its Affiliates, or hire
or engage such person as an independent contractor, or (C) solicit, interfere with, or endeavor to
cause any customer, client, or business partner of the Company, or any of its Affiliates, to cease
or reduce its relationship with the Company, or any of its Affiliates, 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 the Company, or any of its Affiliates; and

(ii) whether or not for compensation, and whether or not as an employee, be engaged in or have a
financial interest in any business, competing with the business of the Company or of any Affiliate
within any state, region or locality in which the Company or such Affiliate is then doing business
or marketing products, as the business of the Company or such Affiliates may then be constituted.
With respect to this sub-section, however, it is understood and agreed that a business is not
competing with the business of the Company or any Affiliate if (A) my duties with respect to such
business relate solely to discrete business units that do not compete with the business of the
Company or any Affiliate; or (B) the competitive activity is limited to geographical markets or
products in which the Company or Affiliate was not engaged (whether by manufacture, distribution,
sale, or development for manufacture, distribution, or sale) during the two (2) years immediately
preceding my ceasing to be employed by the Company.

(2) Miscellaneous. (i) If any restriction in this Exhibit is found by a court of competent
jurisdiction to be unenforceable because it extends for too long a period or covers too great a
range of activities or in too broad a geographic area, it shall be interpreted to be effective to
the extent it is enforceable. The invalidity or unenforceability of any provision shall not affect
the validity or enforceability of any other provision of this Exhibit.

(ii) I acknowledge the restrictions contained in this Exhibit are reasonable and necessary for the
protection of the business and goodwill of the Company. I agree that any breach or threatened
breach of this Exhibit will cause the Company substantial and irrevocable damage that is difficult
to measure and that a remedy at law is not adequate. In the event of breach or threatened breach,
I agree that the Company, in addition to other available remedies, shall have the right to seek
specific performance and injunctive relief without posting a bond.

(iii) This Exhibit supersedes all prior agreements, written or oral, between the Company and me
relating to the subject matter of Section 1, including any provisions in the Program, and
shall apply irrespective of the reason my employment ends.

 

 

	 	 	 
	Mr. El-Hibri

August 9, 2006

Page 3

	 	

(v) No delay or omission by the Company in exercising any right under this Exhibit will operate as
a waiver of that or any other right. A waiver or consent given by the Company on any one occasion
is effective only in that instance and will not be construed as a bar to or waiver of any right on
any other occasion.

(vi) This Exhibit shall be binding upon and inure to the benefit of both parties and their
respective successors and assigns, including any corporation or entity with which or into which the
Company may be merged or that may succeed to all or substantially all of its assets or business.

(vii) This Exhibit may not be modified, changed or discharged in whole or in part, except by an
agreement in writing signed by the Company and me. This Exhibit shall be governed by and construed
as a sealed instrument under and in accordance with the laws of the State of Delaware without
regard to conflicts of law provisions.

 

 

	 	 	 
	Mr. El-Hibri

August 9, 2006

Page 4

	 	

Amendment to Exhibit I

Notwithstanding anything to the contrary in Exhibit I to the August 9, 2006 Letter from Emergent
BioSolutions Inc. (the “Company”) to Fuad El-Hibri, Mr. El-Hibri and the Company hereby acknowledge
and agree as follows:

	 	1.	 	The Company acknowledges that Mr. El-Hibri is a member of the board of trustees of
American University, a member of the board of directors of the International BioMedical
Research Alliance, and director and treasurer of the El-Hibri Charitable Foundation; that
Mr. El-Hibri also serves as a director and/or officer of Digicel Holdings, Ltd.,
Telectronics, Inc., East West Resources Corporation, Intervac LLC, and Intervac Management
LLC; and that Mr. El-Hibri manages certain of his own personal investments, including real
estate holding companies. The Company agrees that Mr. El-Hibri’s service in such
capacities has not interfered with his ability to perform his duties to the Company and,
assuming continued service in such capacities at levels of time and attention comparable to
those that Mr. El-Hibri has provided to such entities within the preceding twelve months,
would not violate Exhibit I or interfere with Mr. El-Hibri’s ability to perform his duties
to the Company.
	 
	 	2.	 	It shall not be a violation of Exhibit I for Mr. El-Hibri to pursue any business
transaction or opportunity where such transaction or opportunity was first presented
(i) to Mr. El-Hibri in his capacity as an officer or director of the entities
identified in Paragraph 1, above or (ii) to the Company, and the Board of Directors
of the Company declined to pursue such transaction or opportunity.
	 
	 	3.	 	With respect to Mauro Gibellini, Jose Ochoa, and Kerry Kisling, three employees who, at
Mr. El-Hibri’s invitation, left their employment with East West Resources Corporation (EWR)
to accept employment with the Company, it shall not be a violation of Exhibit I for Mr.
El-Hibri to induce, counsel, advise, solicit or encourage, or attempt to induce, counsel,
advise, solicit or encourage those employees to return to employment with EWR.

	 	 	 	 	 	 	 
	/s/
Fuad El-Hibri
	 	 	 	8/9/06	 	 
	 
 

	 	 	 	 
 

	 	 
	Fuad El-Hibri

	 	 	 	Date	 	 

Acknowledged and Agreed:

Emergent BioSolutions Inc.

	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Daniel Abdun-Nabi	 	 	 	8/9/06	 	 
	Name:

	 	 

Daniel Abdun-Nabi
	 	 	 	 

Date
	 	 
	Title:

	 	Senior Vice President, Corporate Affairs	 	 	 	 	 	 
	 

	 	General Counselexv10w36

 

Exhibit 10.36

SERVICES AGREEMENT

     Services Agreement (“Agreement”), effective as of August 1, 2006, is entered into by and
between East West Resources Corporation, a corporation organized under the laws of the District of
Columbia (“EWR”), and Emergent BioSolutions Inc., a corporation organized under the laws of the
state of Delaware (“Emergent” and together with EWR, a “Party” or the “Parties”).

     WHEREAS, Emergent desires to retain EWR to undertake and perform for Emergent or any current
or future subsidiary or affiliate of Emergent (collectively referred to as “Emergent”), the
services described herein (hereinafter referred to as the “Services”) in accordance with the terms
and conditions of this Agreement; and

     WHEREAS, EWR desires to perform the Services for Emergent in accordance with the terms and
conditions of this Agreement.

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

	1.	 	Engagement. Emergent hereby retains EWR to provide the Services as set forth in
Article 4, below.
	 
	2.	 	Affiliates. For the purposes of this Agreement, the word “Affiliate” shall mean any
subsidiary, of Emergent including, without limitation, all entities in which Emergent
maintains a direct or indirect investment interest.
	 
	3.	 	Compensation and Reimbursement of Expenses.

	 	(a)	 	Fee. During the Term of this Agreement (as defined below), Emergent
shall pay to EWR a fee of $2,450 per month (subject to a 3% increase on each
anniversary date of this Agreement) payable within fifteen (15) days following the last
day of the month in which Services are rendered. The fee is sole remuneration provided
to EWR under this Agreement, and EWR shall be responsible for any taxes, charges,
costs, insurance or other payments resulting from this Agreement.
	 
	 	(b)	 	Expenses. Emergent shall also reimburse all parking fees, tolls, and
other similar expenses directly associated with provision of Services to Emergent,
provided that such expenses are documented by a valid receipt if greater than US $20
and that the total expenses for any calendar month do not exceed US $200 without prior
written approval by Emergent.

	4.	 	Services. EWR agrees to provide the following Services: provision of an automobile
(properly maintained and insured, and with fuel, licenses and fees fully paid by EWR), driver,
and associated logistics support to Emergent as requested for an average of twenty (20) hours
per week. Requests for the Services may be made by the Chief Executive Officer of Emergent or
his designee. In providing the Services, EWR agrees that:

	 	(a)	 	All EWR employees assigned to perform the Services are either citizens or
permanent residents of the United States or are authorized to work in the United States
through a valid work authorization issued by the US Department of Homeland Security,
United States Citizenship and Immigration Services and possess (and agree to maintain)
all licenses and certifications necessary to provide the Services.
	 
	 	(b)	 	All EWR employees assigned to perform the Services shall conduct themselves in
a professional manner and shall be properly attired at all times.
	 
	 	(c)	 	All vehicles provided under this Agreement shall be clean, well kept, and
properly maintained at all times.

 

 

	 	(d)	 	EWR represents and warrants that EWR’s performance hereunder shall not conflict
with any other agreements to which EWR is or hereafter becomes a party. EWR agrees not
to enter into any agreement, written or oral, which may conflict with this Agreement.

	5.	 	Independent Contractor Status.

	 	(a)	 	The parties agree that EWR will act as an independent contractor in the
performance of the Services under this Agreement. Accordingly, EWR shall be responsible
for payment of all taxes including those arising out of EWR’s activities in accordance
with this Agreement, including by way of illustration but not limitation, income tax,
social security tax, unemployment taxes, and any other taxes or business license fees
as required.
	 
	 	(b)	 	Nothing under the terms of this Agreement authorizes EWR to be an agent or
legal representative of Emergent for any purpose whatsoever, and EWR is not granted
hereunder any right or authority to make any representation, or to assume or create any
obligation or responsibility, express or implied, on behalf of or in the name of
Emergent in any manner whatsoever. Under no circumstances will EWR have the right or
authority to obligate Emergent in a financial capacity for any amounts of money.
	 
	 	(c)	 	This Agreement shall not be deemed to create an employment agreement, joint
venture, partnership, association or agency between the parties. The parties understand
and agree that this Agreement is not a contract of employment, or an offer to enter
into a contract of employment. EWR acknowledges that Emergent provides no benefits to
EWR and waives any rights to any benefits that Emergent may provide to any of its
employees including, without limitation, workman’s compensation; medical, health, life,
dental or other forms of insurance; bonuses; vacation, holiday or sick leave; or any
equity interests (i.e. stock options). The use of Emergent’s facilities and equipment
and the facilities and equipment of any Affiliate of Emergent shall be done at
Emergent’s sole discretion and solely as an accommodation to EWR in the performance of
EWR’s duties under this Agreement.

	6.	 	Confidentiality. Both Parties acknowledge that during the term of this Agreement,
both Parties will have close contact with confidential and proprietary information of the
other Party. Each Party agrees that it will keep secret all such confidential and proprietary
information and will not intentionally disclose such information to anyone except as may be
reasonably necessary for the performance of each Party’s duties under this Agreement. This
obligation survives the termination or expiration of this Agreement. If confidential
information is sought by any source, including any governmental organization, the disclosing
party must immediately notify the non-disclosing party of such request and refuse to divulge
any such information at least until a representative of the non-disclosing party 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.
	 
	7.	 	Term and Termination.

	 	(a)	 	This Agreement is for a one year term (“Term”) and shall automatically renew
for an additional one year term upon the expiration of the then current Term, unless
terminated by either Party with at least sixty (60) days notice prior to the end of the
then current term.
	 
	 	(b)	 	This Agreement may be terminated immediately by either Party in the event of
any default by the other Party in the performance of any of obligations under this
Agreement or any breach of any representation or warranty contained herein which is not
remedied to the reasonable satisfaction of the non-breaching Party within ten (10) days
following delivery of notice of such breach.
	 
	 	(c)	 	This Agreement may be terminated without cause by either Party with no less
than ninety (90) days notice to the other Party.

2

 

	 	(d)	 	Upon termination of this Agreement, each Party shall return all property of the
other Party in its possession or control.

	8.	 	Compliance with Laws; Indemnification.

	 	(a)	 	EWR shall observe and abide by all applicable international, federal, state,
and local laws and rules and regulations with respect to the performance of the
Services hereunder.
	 
	 	(b)	 	Each Party shall indemnify and hold harmless the other Party from and against
any and all claims, losses, damage, liabilities, penalties, punitive damages, expenses
and/or costs of any kind or amount whatsoever (including reasonable attorneys’ fees and
expenses) incurred or paid after the date of this Agreement which result from or arise
out of the indemnifying Party’s acts or omissions under or in connection with this
Agreement. This indemnity shall survive the termination of this Agreement.

	9.	 	Miscellaneous Provisions.

	 	(a)	 	Non-Waiver. Failure by either Party at any time to require the
performance of the other Party of any of the terms hereof shall in no way affect such
Party’s right thereafter to enforce the same, nor shall the waiver by either Party of
the breach of any provision hereof be taken or held to be a waiver of any succeeding
breach.
	 
	 	(b)	 	Severability. In the event that any provision of this Agreement
conflicts with the law under which this Agreement is to be construed, or if any
provision is held invalid or unenforceable by a court of competent jurisdiction or an
arbitrator, such provision shall be deleted from this Agreement and the Agreement shall
be construed to give full effect to the remaining provisions thereof.
	 
	 	(c)	 	Governing Law. This Agreement shall be interpreted, construed, and
governed according to the laws of the State of Maryland, U.S.A.
	 
	 	(d)	 	Headings and Captions. The paragraph headings and captions contained in
this Agreement are for convenience only and shall not be construed to define, limit, or
affect the scope or meaning of the provisions hereof.
	 
	 	(e)	 	Entire Agreement. This Agreement contains and represents the entire
agreement of the parties and supercedes all prior agreements, representations, or
understandings, oral or written, express or implied with respect to the subject matter
hereof. This Agreement may not be modified or amended in any way unless in writing
signed by duly authorized representatives of both Parties. No representation, promise,
or inducement has been made by either party hereto that is not embodied in this
Agreement, and neither party shall be bound or liable for any alleged representation,
promise, or inducement not specifically set forth herein.
	 
	 	(f)	 	Assignability. This Agreement shall be binding upon and inure to the
benefit of each Party and its respective successors and assigns. Neither this Agreement
nor any rights or obligations hereunder may be assigned by either Party without the
prior written consent of the other, which consent shall not be unreasonably withheld.
	 
	 	(g)	 	Arbitration. Any dispute arising out of or in connection with this
Agreement shall be settled finally and exclusively by arbitration conducted in the
English language in the Washington, D.C. metropolitan area. The arbitration shall be
conducted in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (“AAA”) then in effect by a single arbiter appointed by the
AAA. Notwithstanding any provision to the contrary in this sub-section (g), Emergent
shall have the right to seek injunctive relief or other limited, provisional or
equitable remedies in any court of competent jurisdiction.

3

 

	 	(h)	 	Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed properly given if delivered personally or sent by certified
or registered mail, postage prepaid, return receipt requested, or sent by telegram,
telefax, or similar form of telecommunication, and shall be deemed to have been given
when received. Any notice of default shall be valid only if sent by two of the
aforementioned means. Unless otherwise specified by the parties in writing, any such
notice or communication shall be addressed to:

	 	 	 	 	 
	 

	 	EWR:
	 	East West Resources Corporation
	 

	 	 	 	Attn: Robert L. Smith, Jr.
	 

	 	 	 	1684 East Gude Drive, Rockville, MD 20850
	 

	 	 	 	Tel: (301) 217-9929
	 

	 	 	 	Fax. (301) 217-9935
	 

	 	 	 	Email: rsmith@ewrcorp.com
	 
	 

	 	Emergent:
	 	Emergent BioSolutions Inc.
	 

	 	 	 	Attn: Legal Department
	 

	 	 	 	300 Professional Drive
	 

	 	 	 	Gaithersburg, MD 20879
	 

	 	 	 	Tel: (301) 590-0129
	 

	 	 	 	Fax: (301) 590-1252

	 	(i)	 	In no event shall either Party be liable for any consequential, special,
punitive, exemplary, indirect or incidental damages arising from this agreement or
performance under this agreement (including loss of anticipated profits, loss of use,
or loss of product). This waiver applies regardless of whether or not the damages were
foreseeable, and regardless of the theory or cause of action upon which the damages
might be based.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, to be effective as
of the date and year first above written.

	 	 	 	 	 	 	 	 	 
	EAST WEST RESOURCES CORPORATION:	 	 	 	EMERGENT BIOSOLUTIONS INC.:
	 
	 	 	 	 	 	 	 	 
	/s/ Robert L. Smith, Jr.	 	 	 	/s/ Daniel J. Abdun-Nabi
	 	 	 	 	 
	By:

	 	Robert L. Smith, Jr.
	 	 	 	By:
	 	Daniel J. Abdun-Nabi
	Title:

	 	Vice President, Finance

& Administration
	 	 	 	Title:
	 	Sr. Vice President Corporate 

Affairs, General Counsel

4

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