Document:

ex10-18

 

EXHIBIT 10.18

SIXTH REPLACEMENT REVOLVING PROMISSORY NOTE

	 	 	 
	$2,000,000	 	
Rockville, Maryland
	 	 	
As of October 1, 2001

     FOR VALUE RECEIVED, BIORELIANCE CORPORATION, a corporation organized and
in good standing under the laws of the State of Delaware, successor in interest
to Microbiological Associates, Inc. (the “Company”), BIORELIANCE TESTING AND
DEVELOPMENT, LLC, a limited liability company organized and in good standing
under the laws of the State of Delaware (“BT&D LLC”), BIORELIANCE
MANUFACTURING, LLC, a limited liability company organized and in good standing
under the laws of the State of Delaware (“BMF LLC”) and BIORELIANCE VIRAL
MANUFACTURING, INC. (formerly known as Magenta Viral Production, Inc.),
successor in interest to BioReliance Testing and Development, Inc. and
BioReliance Manufacturing, Inc., a corporation organized and in good standing
under the laws of the State of Delaware (“Viral Manufacturing;” together with
the Company, BT&D LLC, and BMF LLC, each a “Borrower” and collectively, the
“Borrowers”), jointly and severally, promise to pay to the order of BANK OF
AMERICA, N.A., successor to NATIONSBANK, N.A., each a national banking
association, its successors and assigns (the “Lender”), the principal sum of
TWO MILLION DOLLARS ($2,000,000) (the “Principal Sum”), or so much thereof as
has been or may be advanced or readvanced to or for the account of the
Borrowers pursuant to the terms and conditions of the Loan Agreement (as
hereinafter defined), together with interest thereon at the rate or rates
hereinafter provided, in accordance with the following:

 

 

     1.     Interest. Commencing as of the date hereof and continuing until
repayment in full of all sums due hereunder, the unpaid Principal Sum shall
bear interest at the LIBOR Rate (as hereinafter defined), plus the applicable
LIBOR Rate Additional Percentage (the “LIBOR Rate Option”).

            (a)     For purposes hereof, the “LIBOR Rate Additional Percentage” shall mean
the percentages applicable to this Note in accordance with the following:

		
	 	                (i)         If the ratio of Funded Debt divided by EBITDA is equal to or
greater than 2.75 to 1.0, the LIBOR Rate Additional Percentage shall be
two and three quarters percent (2.75%);
	 
	 	                (ii)        If the ratio of Funded Debt divided by EBITDA is less than 2.75
to 1.0, but equal to or greater than 2.0 to 1.0, the LIBOR Rate
Additional Percentage shall be one and three quarters percent (1.75%);
	 
	 	                (iii)      If the ratio of Funded Debt divided by EBITDA is less than 2.0
to 1.0, but equal to or greater than 1.25 to 1.0 the LIBOR Rate
Additional Percentage shall be one and one quarter percent (1.25%); and
	 
	 	                (iv)      If the ratio of Funded Debt divided by EBITDA is less than 1.25
to 1.0, the LIBOR Rate Additional Percentage shall be .85/100 percent
(0.85%)

            (b)     The initial LIBOR Rate Additional Percentage shall be one and one
quarter percent (1.25%). Thereafter, the applicable LIBOR Rate Additional
Percentage for all Advances shall be calculated and adjusted quarterly, based
on the quarterly financial statements of the Borrowers required to be submitted
to the Lender pursuant to Section 5.1(c) of the Loan
Agreement, commencing with the statements for the quarter ending December
31, 2001. Such

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quarterly changes shall be effective commencing five (5)
Banking Days after submission by the Borrowers of the required financial
statements; it being understood, however, that, subject to the provisions of
the immediately following sentence, in the event the quarterly financial
statements are not submitted when due, the LIBOR Rate Additional Percentage
shall be two percent (2.00%), until such financial statements are submitted as
required, at which time, the LIBOR Rate Additional Percentage (for the balance
of the quarterly period) shall be determined as set forth above. If such
financial statements are not submitted when due, but are received within thirty
(30) days of when due, the Lender will return to the Borrower any additional
interest collected in excess of the amount that should have otherwise been due
hereunder based on the financial statements. For purposes of this Note,
“Funded Debt” and “EBITDA” shall each be determined based on the consolidated
quarterly financial statements of the Borrowers and shall have the meanings set
forth in the Loan Agreement.

            (c)     For purposes hereof, the “LIBOR Rate” shall mean a fluctuating rate of
interest equal to the one month 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 one month London interbank offered rate for deposits in Dollars at
approximately 11:00 a.m. (London time) on the second preceding business day as
adjusted from time to time in Lender’s sole discretion for then applicable
reserve requirements, deposit insurance assessment rates and other regulatory
costs. If for any reason such rate is not available, the term “LIBOR Rate”
shall mean the fluctuating rate of interest equal to the one month rate of
interest (rounded upwards, if necessary to the
nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the one
month London interbank offered rate for deposits in Dollars at approximately
11:00 a.m. (London time) on the

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second preceding business day, as adjusted from
time to time in Lender’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.
“Telerate Page 3750” means the British Bankers Association Libor Rates
(determined as of 11:00 a.m. London time) that are published by Dow Jones
Telerate, Inc.

            (d)     The Borrowers shall pay to the Lender, as additional interest, the
following sums, at the time and in the manner hereinafter set forth:

     
                    (A)    if, due to either: (i) the introduction of or any change (including,
without limitation, any change by way of imposition or increase of reserve
requirements) in or in the interpretation of any law or regulation or (ii) the
compliance by the Lender with any guideline or request from any central bank or
other governmental authority (whether or not having the force of law), there
shall be any increase in the cost to the Lender of agreeing to make or making,
funding or maintaining advances of all or a portion of the Principal Sum, then
the Borrowers shall from time to time, upon demand by the Lender, pay to the
Lender additional amounts to indemnify the Lender against any such increased
costs. A certificate as to the amount of such increased costs submitted to the
Borrowers by the Lender shall in the absence of manifest error be conclusive.
It shall be deemed, for purposes of computing any increased costs pursuant to
this Section, that (i) the making and maintaining of advances of the Principal
Sum which accrue interest based on the LIBOR Rate have been made by the
Lender from its office in London, England and (ii) the funding of each Advance
of the Principal Sum by the Lender which accrues interest based on the LIBOR
Rate has been made through the London

4

 

Interbank Market. Such additional cost
shall be payable hereunder at the time and in the manner that interest is
payable hereunder for such costs incurred since the last interest payment;

     
                    (B)    the Borrowers shall also pay to the Lender at the time and in the
manner that interest is payable hereunder for each advance, the cost since the
last interest payment date, as determined in good faith by the Lender, of
complying, in connection with such advance during such interest period, with
any reserve, special deposit or similar requirement (including but not limited
to reserve requirements under Federal Reserve Regulation D) imposed or deemed
applicable against any assets held by or deposits or accounts in or with or
credit extended by the Lender, or the office of the Lender in London, England,
by any United States governmental authority charged with the administration of
such requirements. Each notification as to the amount of such cost, delivered
to the Borrowers by the Lender shall, in the absence of manifest error, be
conclusive as to the amount of such cost. It shall be deemed for purposes of
computing cost pursuant to the above provision that the making and maintaining
of each advance which accrues interest based on the LIBOR Rate has been made by
the Lender through its office in London, England.

            (e)     In respect to any interest rate election hereunder and any
transactions contemplated hereby, the Borrowers authorize the Lender to accept,
rely upon, act upon and comply with, any verbal or written instructions,
requests, confirmations and orders of Capers W.
McDonald, President and CEO, or John Coker, CFO, or their successors in
office, on behalf of the Borrowers. The Borrowers acknowledge and agree that
the transmission between the Borrowers and the Lender of any such instructions,
requests, confirmations and orders involves the possibility of errors,
omissions, mistakes and discrepancies and agrees to adopt such internal

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measures and operational procedures to protect its interests. By reason
thereof, the Borrowers hereby assume all risk of loss and responsibility for,
releases and discharges the Lender from any and all responsibility or liability
for, and agrees to indemnify, reimburse on demand and hold the Lender harmless
from, any and all claims, actions, damages, losses, liability and expenses by
reason of, arising out of or in any way connected with or related to, (i) the
Lender’s acceptance, reliance and actions upon, compliance with or observation
of any such instructions, requests, confirmations or orders, and (ii) any such
errors, omissions, mistakes and discrepancies, except those caused by the
Lender’s gross negligence or willful misconduct.

            (f)     All interest payable under the terms of this Note shall be calculated
on the basis of a 360-day year and the actual number of days elapsed.

     2.     Payments and Maturity. The unpaid Principal Sum, together with
interest thereon at the rate or rates provided above, shall be payable as
follows:

            (a)     Interest only on the unpaid Principal Sum shall be due and payable
monthly, commencing October 31, 2001 and on the last day of each month
thereafter to maturity; and

            (b)     Unless sooner paid, the unpaid Principal Sum, together with interest
accrued and unpaid thereon, shall be due and payable in full on May 31, 2003.

     The fact that the balance hereunder may be reduced to zero from time to
time pursuant to the Loan Agreement will not affect the continuing validity of
this Note or the Loan Agreement, and the balance may be increased to the
Principal Sum after any such reduction to zero.

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     3.     Default Interest. Upon the occurrence of an Event of Default (as
hereinafter defined), the unpaid Principal Sum shall bear interest thereafter
at a rate five percent (5.0%) per annum in excess of the LIBOR Rate until such
Event of Default is cured.

     4.     Late Charges. If the Borrowers shall fail to make any payment under
the terms of this Note within fifteen (15) days after the date such payment is
due, the Borrowers shall pay to the Lender on demand a late charge equal to
three percent (3%) of such payment.

     5.     Application and Place of Payments. All payments, made on account of
this Note shall be applied first to the payment of any late charge then due
hereunder, second to the payment of accrued and unpaid interest then due
hereunder, and the remainder, if any, shall be applied to the unpaid Principal
Sum. All payments on account of this Note shall be paid in lawful money of the
United States of America in immediately available funds during regular business
hours of the Lender at its principal office in Rockville, Maryland or at such
other times and places as the Lender may at any time and from time to time
designate in writing to the Borrowers.

     6.     Loan Agreement and Other Loan Documents. This Note is the “Second
Restated Note” described in that certain Fourth Amendment to Amended and
Restated Replacement Loan Agreement of even date herewith by and among the
Borrowers and the Lender, which amends that certain Amended and Restated
Replacement Loan Agreement dated
October 31, 1997 by and among the Borrowers and the Lender (the Amended
and Restated Replacement Loan Agreement, as thereafter amended from time to
time, is hereinafter called the “Loan Agreement”). This Note amends and
restates in its entirety that certain Fifth Replacement Revolving Promissory
Note dated as of May 31, 2001 in the maximum principal amount of Two

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Million
Dollars ($2,000,000) from the Borrowers in favor of the Lender (as amended from
time to time, the “Replacement Note”). It is expressly agreed that the
indebtedness evidenced by the Replacement Note has not been extinguished or
discharged hereby. The Borrowers agree that the execution of this Agreement is
not intended to and shall not cause or result in a novation with respect to the
Replacement Note. The indebtedness evidenced by this Note is included within
the meaning of the term “Obligations” as defined in the Loan Agreement. The
term “Loan Documents” as used in this Note shall mean collectively this Note,
the Loan Agreement and any other instrument, agreement, or document previously,
simultaneously, or hereafter executed and delivered by the Borrowers and/or any
other person, singularly or jointly with any other person, evidencing,
securing, guaranteeing, or in connection with the Principal Sum, this Note
and/or the Loan Agreement. All capitalized terms used herein and not otherwise
defined shall have the meanings given to such terms in the Loan Agreement.

     7. Additional Parties; Assumption. BT&D LLC and BMF LLC agree (i) to
become joint and several co-makers of this Note; (ii) to be bound by all the
terms and conditions of this Note; (iii) to assume and agree to pay and perform
when due all present and future indebtedness, liabilities and obligations of a
Borrower under, based upon, or arising out of the Loan Documents and
instruments and agreements relating thereto; and (iv) to honor, perform and
comply with, in all respects, all terms and provisions of all of the Loan
Documents. All references in the Loan Documents to “Borrower” shall be deemed
to refer to BT&D LLC and BMF LLC. Furthermore, all present and future
obligations of the Borrowers under the Loan Documents shall be deemed to refer
to all present and future obligations of BT&D LLC and BMF LLC.

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     8.     Events of Default. The occurrence of any one or more of the following
events shall constitute an event of default (individually, an “Event of
Default” and collectively, the “Events of Default”) under the terms of this
Note:

            (a)     The failure of the Borrowers to pay to the Lender when due any and all
amounts payable by the Borrowers to the Lender and such failure remains uncured
for five (5) days after written notice thereof; or

            (b)     The occurrence of an event of default (as defined therein) under the
terms and conditions of any of the other Loan Documents.

     9.     Remedies. Upon the occurrence of an Event of Default, at the option of
the Lender, all amounts payable by the Borrowers to the Lender under the terms
of this Note shall immediately become due and payable by the Borrowers to the
Lender without notice to the Borrowers or any other person, and the Lender
shall have all of the rights, powers, and remedies available under the terms of
this Note, any of the other Loan Documents and all applicable laws. The
Borrowers and all endorsers, guarantors, and other parties who may now or in
the future be primarily or secondarily liable for the payment of the
indebtedness evidenced by this Note hereby severally waive presentment, protest
and demand, notice of protest, notice of demand and of dishonor and non-payment
of this Note and expressly agree that this Note or any payment
hereunder may be extended from time to time without in any way affecting
the liability of the Borrowers, guarantors and endorsers.

     Until such time as the Lender is not committed to extend further credit to
the Borrowers and all Obligations of the Borrowers to the Lender have been
indefeasibly paid in full in cash, and subject to and not in limitation of the
provisions set forth in the next following paragraph

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below, no Borrower shall
have any right of subrogation (whether contractual, arising under the
Bankruptcy Code or otherwise), reimbursement or contribution from any Borrower
or any guarantor, nor any right of recourse to its security for any of the
debts and obligations of any Borrower which are the subject of this Note.
Except as otherwise expressly permitted by the Loan Agreement, any and all
present and future debts and obligations of any Borrower to any other Borrower
are hereby subordinated to the full payment and performance of all present and
future debts and obligations to the Lender under this Note and the Loan
Agreement and the Loan Documents, provided, however, notwithstanding anything
set forth in this Note to the contrary, prior to the occurrence of a payment
Default, the Borrowers shall be permitted to make payments on account of any of
such present and future debts and obligations from time to time in accordance
with the terms thereof.

     Each Borrower further agrees that, if any payment made by any Borrower or
any other person is applied to this Note and is at any time annulled, set
aside, rescinded, invalidated, declared to be fraudulent or preferential or
otherwise required to be refunded or repaid, or the proceeds of any property
hereafter securing this Note is required to be returned by the Lender to any
Borrower, its estate, trustee, receiver or any other party, including, without
limitation, such
Borrower, under any bankruptcy law, state or federal law, common law or
equitable cause, then, to the extent of such payment or repayment, such
Borrower’s liability hereunder (and any lien, security interest or other
collateral securing such liability) shall be and remain in full force and
effect, as fully as if such payment had never been made, or, if prior thereto
any such lien, security interest or other collateral hereafter securing such
Borrower’s liability hereunder shall have been released or terminated by virtue
of such cancellation or surrender, this Note (and such

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lien, security interest
or other collateral) shall be reinstated in full force and effect, and such
prior cancellation or surrender shall not diminish, release, discharge, impair
or otherwise affect the obligations of such Borrower in respect of the amount
of such payment (or any lien, security interest or other collateral securing
such obligation).

     The JOINT AND SEVERAL obligations of each Borrower under this Note shall
be absolute, irrevocable and unconditional and shall remain in full force and
effect until the outstanding principal of and interest on this Note and all
other Obligations or amounts due hereunder and under the Loan Agreement and the
Loan Documents shall have been indefeasibly paid in full in cash in accordance
with the terms thereof and this Note shall have been canceled.

     10.     Expenses. The Borrowers, jointly and severally, promise to pay to the
Lender on demand by the Lender all reasonable costs and expenses incurred by
the Lender in connection with the collection and enforcement of this Note,
including, without limitation, reasonable attorneys’ fees and expenses and all
court costs.

     11.     Notices. Any notice, request, or demand to or upon the Borrowers or
the Lender shall be deemed to have been properly given or made when delivered
in accordance with Section 9.1 of the Loan Agreement.

     12.     Miscellaneous. Each right, power, and remedy of the Lender as
provided for in this Note or any of the other Loan Documents, or now or
hereafter existing under any applicable law or otherwise shall be cumulative
and concurrent and shall be in addition to every other right, power, or remedy
provided for in this Note or any of the other Loan Documents or now or
hereafter existing under any applicable law, and the exercise or beginning of
the exercise by the Lender of any one or more of such rights, powers, or
remedies shall not preclude the

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simultaneous or later exercise by the Lender of
any or all such other rights, powers, or remedies. No failure or delay by the
Lender to insist upon the strict performance of any term, condition, covenant,
or agreement of this Note or any of the other Loan Documents, or to exercise
any right, power, or remedy consequent upon a breach thereof, shall constitute
a waiver of any such term, condition, covenant, or agreement or of any such
breach, or preclude the Lender from exercising any such right, power, or remedy
at a later time or times. By accepting payment after the due date of any
amount payable under the terms of this Note, the Lender shall not be deemed to
waive the right either to require prompt payment when due of all other amounts
payable under the terms of this Note or to declare an Event of Default for the
failure to effect such prompt payment of any such other amount. No course of
dealing or conduct shall be effective to amend, modify, waive, release, or
change any provisions of this Note.

     13.     Partial Invalidity. In the event any provision of this Note (or any
part of any provision) is held by a court of competent jurisdiction to be
invalid, illegal, or unenforceable in any respect, such invalidity, illegality,
or unenforceability shall not affect any other provision (or remaining part of
the affected provision) of this Note; but this Note shall be construed as if
such invalid, illegal, or unenforceable provision (or part thereof) had not
been contained in this Note, but only to the extent it is invalid, illegal, or
unenforceable.

     14.     Captions. The captions herein set forth are for convenience only and
shall not be deemed to define, limit, or describe the scope or intent of this
Note.

     15.      Applicable Law. Each of the Borrowers acknowledges and agrees that
this Note shall be governed by the laws of the State of Maryland, even though
for the convenience and at the request of the Borrowers, this Note may be
executed elsewhere.

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     16.     ARBITRATION. ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES
HERETO INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF THIS NOTE, THE LOAN
DOCUMENTS OR ANY RELATED INSTRUMENTS, AGREEMENTS OR DOCUMENTS, INCLUDING ANY
CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL BE DETERMINED BY BINDING
ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (OR IF NOT
APPLICABLE, THE APPLICABLE STATE LAW), THE RULES OF PRACTICE AND PROCEDURE FOR
ARBITRATION OF COMMERCIAL DISPUTES OF ENDISPUTE, INC., D/B/A J.A.M.S./ENDISPUTE
(“J.A.M.S.”) AND THE “SPECIAL RULES” SET FORTH BELOW. IN THE EVENT OF AN
INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL.
JUDGMENT UPON ANY ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING
JURISDICTION. ANY PARTY TO THIS NOTE, AGREEMENT OR DOCUMENT MAY BRING ANY
ACTION, INCLUDING A SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL ARBITRATION OF
ANY CONTROVERSY OR CLAIM TO WHICH THIS NOTE, AGREEMENT OR DOCUMENT RELATES IN
ANY COURT HAVING JURISDICTION OVER SUCH ACTION.

     (A)    SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN MONTGOMERY
COUNTY, MARYLAND AND ADMINISTERED BY J.A.M.S. WHO WILL APPOINT AN ARBITRATOR.
IF J.A.M.S. IS UNABLE OR LEGALLY PRECLUDED FROM ADMINISTERING THE ARBITRATION,
THEN THE AMERICAN ARBITRATION ASSOCIATION WILL SERVE. ALL ARBITRATION HEARINGS
WILL BE COMMENCED WITHIN NINETY (90) DAYS OF THE DEMAND FOR ARBITRATION;
FURTHER, THE

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ARBITRATOR SHALL ONLY, UPON A SHOWING OF CAUSE, BE PERMITTED TO
EXTEND THE COMMENCING OF SUCH HEARING FOR AN ADDITIONAL SIXTY (60) DAYS.

     (B)    RESERVATION OF RIGHTS. NOTHING IN THIS NOTE, AGREEMENT OR DOCUMENT
SHALL BE DEEMED TO: (I) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE
STATUTES OF LIMITATION OR REPOSE AND ANY WAIVERS CONTAINED IN THIS NOTE,
AGREEMENT OR DOCUMENT; OR (II) BE A WAIVER BY THE LENDER OF THE PROTECTION
AFFORDED TO IT BY 12 U.S.C. §91 OR ANY SUBSTANTIALLY EQUIVALENT STATE LAW; OR
(III) LIMIT THE RIGHT OF
THE LENDER: (A) TO EXERCISE SELF HELP REMEDIES ( BUT NOT INCLUDING
SETOFF), OR (B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL,
OR (C) TO OBTAIN FROM A COURT PROVISIONAL OR ANCILLARY REMEDIES SUCH AS (BUT
NOT LIMITED TO) INJUNCTIVE RELIEF, WRIT OF POSSESSION OR THE APPOINTMENT OF A
RECEIVER. THE LENDER MAY EXERCISE SUCH SELF HELP RIGHTS, FORECLOSE UPON SUCH
PROPERTY, OR OBTAIN SUCH PROVISIONAL OR ANCILLARY REMEDIES BEFORE, DURING OR
AFTER THE PENDENCY OF ANY ARBITRATION PROCEEDING BROUGHT PURSUANT TO THIS NOTE,
AGREEMENT OR DOCUMENT. NEITHER THE EXERCISE OF SELF HELP REMEDIES NOR THE
INSTITUTION OR MAINTENANCE OF ANY ACTION FOR FORECLOSURE OR FOR PROVISIONAL OR
ANCILLARY REMEDIES SHALL CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY,
INCLUDING THE

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CLAIMANT IN SUCH ACTION, TO ARBITRATE THE MERITS OF THE
CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH REMEDIES.

[SIGNATURES BEGIN ON THE FOLLOWING PAGE]

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     IN WITNESS WHEREOF, the Borrowers have caused this Note to be executed
under seal by their duly authorized officers as of the date first written
above.

	 	 	 	 	 	 
	WITNESS/ATTEST:	 	
BIORELIANCE CORPORATION
	 
	      /s/ Evdoxia E. Kopsidas	 	By: 	     
           /s/ John L. Coker	(SEAL)
	
	 	 	

	 
	 	 	 	Name:     	John L. Coker
	 	 	 	Title: 	Vice President— Finance and
Administration, Chief Financial
Officer
	 
	WITNESS/ATTEST:	 	
BIORELIANCE TESTING AND
DEVELOPMENT, LLC
	 
	      /s/ Evdoxia E. Kopsidas	 	By: 	     
           /s/ John L. Coker	(SEAL)
	
	 	 	

	 
	 	 	 	Name:     	John L. Coker
	 	 	 	Title: 	Vice President— Finance and
Administration, Chief Financial
Officer
	 
	WITNESS/ATTEST:	 	
BIORELIANCE MANUFACTURING, LLC

	 
	      /s/ Evdoxia E. Kopsidas	 	By: 	     
           /s/ John L. Coker	(SEAL)
	
	 	 	

	 
	 	 	 	Name:     	John L. Coker
	 	 	 	Title: 	Vice President— Finance and
Administration, Chief Financial
Officer
	 
	WITNESS/ATTEST:	 	
BIORELIANCE VIRAL MANUFACTURING, INC.

	 
	      /s/ Evdoxia E. Kopsidas	 	By: 	     
           /s/ John L. Coker	(SEAL)
	
	 	 	

	 
	 	 	 	Name:     	John L. Coker
	 	 	 	Title: 	Vice President— Finance and
Administration, Chief Financial
Officer

16ex10-29

 

EXHIBIT 10.29

BIORELIANCE CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

(Effective as of October 31, 2001)

	1.	 	PURPOSE.

     The Employee Stock Purchase Plan (the “Plan”) of BioReliance Corporation
(the “Company”) is designed to provide an opportunity for the employees of the
Company and its Designated Subsidiaries (defined below) to purchase shares of
the Company’s common stock, $.01 par value per share (“Common Stock”) through
voluntary automatic payroll deductions and to encourage such employees to
continue in the employ of and to exert their best efforts on behalf of the
Company and such subsidiaries. The Plan is intended to be an “employee stock
purchase plan” within the meaning of Section 423 of the Internal Revenue Code
of 1986, as amended (the “Code”).

	2.	 	CERTAIN TERMS.

     (a)     “Change in Capitalization” shall mean any increase or reduction in the
number of shares of Common Stock (“Shares”), or any change (including, without
limitation, a change in value) in the Shares or exchange of Shares for a
different number or kind of shares or other securities of the Company or
another corporation, by reason of a reclassification, recapitalization, merger,
consolidation, reorganization, spin-off, split-up, issuance of warrants or
rights or debentures, stock dividend, stock split or reverse stock split,
property dividend, combination or exchange of shares, change in corporate
structure or substantially similar event.

     (b)     A “Change in Control” shall mean the occurrence during the term of the
Plan of any of the following events:

		
	 	     (1)     An acquisition in one or more transactions (other than directly
from the Company or pursuant to options granted under this Plan or
otherwise by the Company) of any voting securities of the Company (the
“Voting Securities”) by any Person (other than any member of the Knafel
Family) immediately after which such Person has beneficial ownership
within the meaning of Rule 16d-3 promulgated under the Exchange Act
(“Beneficial Ownership”) of (i) thirty percent (30%) or more of the
combined voting power of the Company’s then outstanding Voting Securities
and (ii) a number of Voting Securities having combined voting power
greater than the combined voting power of the Voting Securities then
Beneficially Owned by members of the Knafel Family; provided, however, in
determining whether a Change in Control has occurred, Voting Securities
which are acquired in a “Non-Control Acquisition” (as defined below)
shall not constitute

 

 

		
	 	an acquisition which would cause a Change in Control. A “Non-Control
Acquisition” shall mean an acquisition by (A) an employee benefit plan
(or a trust forming a part thereof) maintained by (i) the Company or (ii)
any Subsidiary, (B) the Company or any Subsidiary, or (C) any Person in
connection with a “Non-Control Transaction” (as defined below);
	 
	 	     (2)     The individuals who, as of April 24, 1997, are members of the
Board (the “Incumbent Board”), cease for any reason to constitute at
least two-thirds of the Board; provided, however, that if the election,
or nomination for election by the Company’s stockholders, of any new
director was approved by a vote of at least two-thirds of the Incumbent
Board, such new director shall, for purposes of the Plan, be considered a
member of the Incumbent Board; provided, further, however, that no
individual shall be considered a member of the Incumbent Board if such
individual initially assumed office as a result of an actual or
threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board (a “Proxy Contest”) including by reason of
any agreement intended to avoid or settle any Proxy Contest; or
	 
	 	     (3)     Consummation of:

		
	 	     (A)     A merger, consolidation, or reorganization involving the
Company, unless

		
	 	     (1)     the stockholders of the Company immediately before
such merger, consolidation or reorganization own, directly
or indirectly, immediately following such merger,
consolidation or reorganization, more than fifty percent
(50%) of the combined voting power of the outstanding
voting securities of the corporation resulting from such
merger or consolidation or reorganization (the “Surviving
Corporation”) in substantially the same proportion as their
ownership of the Voting Securities immediately before such
merger, consolidation or reorganization;
	 
	 	     (2)     the individuals who were members of the Incumbent
Board immediately prior to the execution of the agreement
providing for such merger, consolidation, or reorganization
constitute at least two-thirds of the members of the
governing board of directors of the Surviving Corporation;
	 
	 	     (3)     no Person (other than the Company or any
Subsidiary, any employee benefit plan (or any trust forming
a part thereof) maintained by the Company, the Surviving
Corporation or any Subsidiary, or any Person, who,
immediately prior to such merger, consolidation or
reorganization had Beneficial Ownership of twenty percent
(20%) or more of the then outstanding Voting Securities)
has Beneficial Ownership of twenty percent (20%) or more of
the combined voting

 

 

		
	 	power of the Surviving Corporation’s then outstanding
voting securities; and
	 
	 	     (4)     a transaction described in clauses (1) through (3)
shall herein be referred to as a “Non-Control Transaction”;

		
	 	     (B)     A complete liquidation or dissolution of the Company; or
	 
	 	     (C)     An agreement for the sale or other disposition of all or
substantially all of the assets of the Company to any Person 
     (other than a transfer to a Subsidiary).

		
	 	     Notwithstanding the foregoing, a Change in Control shall not be deemed to
occur solely because any Person (the “Subject Person”) acquired
Beneficial Ownership of more than the permitted amount of the outstanding
Voting Securities as a result of the acquisition of Voting Securities by
the Company which, by reducing the number of Voting Securities
outstanding, increases the proportional number of shares beneficially
owned by the Subject Person; provided, however, that if a Change in
Control would occur (but for the operation of this sentence) as a result
of the acquisition of Voting Securities by the Company, and after such
share acquisition by the Company, the Subject Person becomes the
Beneficial Owner of any additional Voting Securities which increases the
percentage of the then outstanding Voting Securities beneficially owned
by the Subject Person, then a Change in Control shall occur.

     (c)     “Committee” means a committee, as described in Section 13, appointed
by the Board of Directors of the Company (the “Board”) from time to time and to
confirm the functions set forth herein.

     (d)     “Designated Subsidiaries” shall mean those Subsidiaries which are
designated from time to time by the Board or the Committee.

     (e)     “Enrollment Period” shall mean the period of up to thirty days
beginning before the first day of a Purchase Period, or such other period in
advance of a Purchase Period as the Company shall determine.

     (f)     “Exchange Act” means the Securities Exchange Act of 1934, as
amended.

     (g)     “Fair Market Value” on any date means the closing price at the close
of the primary trading session of the Shares on such date on the principal
national securities exchange on which such Shares are listed or admitted to
trading, or, if such Shares are not so listed or admitted to trading, the
closing price at the close of the primary trading session on such date as
quoted on the Nasdaq Stock Market or such other market in which such prices are
regularly quoted, or, if there has been no such closing price with respect to
Shares on such date, the Fair Market Value shall be the value established by
the Committee in good faith.

     (h)     “Gross Payroll Amount” shall mean the gross amount of pay an employee
would receive at each regular pay period before the deduction of withholding,
FICA, medical and dental

 

 

premiums, medical reimbursement accounts, amount contributed to a trust
pursuant to a qualified cash or deferred compensation arrangement under Section
401(k) of the Code, and all other amounts to be withheld, including deductions
under this Plan, but after the deduction of amounts withheld pursuant to
deferred compensation arrangements.

     (i)     “Knafel Family” means (i) Sidney R. Knafel and/or members of his
“immediate family” (as defined in Rule 16a-1 promulgated under the Exchange
Act), (ii) a trust solely for the benefit of any of the individuals referred to
in clause (i) above: (iii) the guardian, conservator, estate or other legal
representative of any of the individuals referred to in clause (i) above; and
(iv) any corporation, partnership, limited liability company or other entity
all of the outstanding equity securities of which are owned, directly or
indirectly, by the individuals or entities referred to in clause (i), (ii) or
(iii) above.

     (j)     “Offering” shall mean an offering of Shares for purchase hereunder.

     (k)    “Person” shall mean “person” as such term is used for purposes of
Section 13(d) or 14(d) of the Exchange Act, including, without limitation, any
individual, firm, corporation, partnership, limited liability company, joint
venture, association, trust or other entity, or any group of Persons.

     (l)     “Purchase Period” shall mean a period during which payroll deductions
are to be made pursuant to the Plan. Unless otherwise provided by the
Committee, Purchase Periods shall commence on December, March, June and
September 1 and shall be three months in duration.

     (m)     “Retirement” shall mean termination of employment by an employee who
is at least 55 years of age after at least five years of employment by the
Company and/or a Designated Subsidiary.

     (n)     “Subsidiary” shall mean any corporation or other Person of which a
majority of its voting power or its equity securities or equity interest is
owned directly or indirectly by the Company.

	3.	 	OFFERING UNDER THE PLAN; ELECTION TO PURCHASE.

     (a)     In each instance, the Committee shall determine whether or not there
will be an Offering. If the Committee shall decide that there shall be an
Offering, the Committee shall, in advance of the Offering, determine: (i) the
first and last days of the Offering and the Purchase Period, (ii) the aggregate
number of Shares to be offered in a Purchase Period, (iii) the maximum
percentage of an employee’s Gross Payroll Amount, not to exceed ten percent,
that he may elect for payroll deductions described in Section 8, and (iv) the
maximum number, if any, of Shares which any employee may purchase in any
Purchase Period during such Offering; and shall give each eligible employee
written notice of such determinations prior to the commencement of the
Enrollment Period.

 

 

     (b)     Each eligible employee may elect to buy Shares in any Purchase Period
by completing, signing and delivering to the Company, an Election and
Authorization form in the form prescribed by the Company prior to the
commencement of the Purchase Period which:

          (i)     specifies the percentage of his Gross Payroll Amount (not in excess of
the maximum set by the Committee) he elects to have deducted and applied to
purchase Shares hereunder;

          (ii)     authorizes the Company to make (or receive from a Designated
Subsidiary) the specified periodic payroll deductions from his compensation
during such Purchase Period or until such earlier date as (x) he shall cancel
or (if permitted by the Committee) modify his authorization by filing an
executed cancellation or modification (in the time and form prescribed by the
Company) with the Company, (y) he shall have purchased the maximum number of
Shares he is entitled to purchase in the Purchase Period, or (z) he shall have
terminated employment with the Company or Designated Subsidiary for purposes of
Section 8 of this Plan; and

          (iii)     specifies the exact name in which Shares purchased by him in the
Purchase Period are to be issued, which shall be the full legal name of the
employee.

     (c)     Each eligible employee who elects to participate in the Plan during
any Enrollment Period shall remain enrolled in the Plan and shall continue to
participate in each successive Offering until the employee’s authorization is
cancelled or the employee ceases to be eligible to participate in the Plan.

	4.	 	ELIGIBLE EMPLOYEES.

     All regular, full-time employees of the Company and of the Designated
Subsidiaries at the commencement of a Purchase Period shall be eligible
employees under this Plan with respect to such Purchase Period, except:

     (a)     employees who at the commencement of the Purchase Period have been
employed by the Company or a Designated Subsidiary for less than 90 days;

     (b)     employees whose customary employment by the Company or a Designated
Subsidiary at the commencement of a Purchase Period is 20 hours or less per
week;

     (c)     employees whose customary employment by the Company or a Designated
Subsidiary at the commencement of a Purchase Period is for not more than five
months in any calendar year; and

     (d)     any employee who, as of the first day of a Purchase Period, would own
stock or hold outstanding options to purchase stock, possessing in the
aggregate (as determined under Sections 423 and 424 of the Code) five percent
or more of the total combined voting power or value of all classes of stock of
the Company or of any Subsidiary.

 

 

	5.	 	NUMBER OF SHARES PURCHASABLE.

     (a)     The maximum number of Shares that may be purchased by any eligible
employee during a Purchase Period shall be determined by the Committee in its
sole discretion. Such limitation shall be expressed both as a maximum
percentage, not to exceed ten percent, of an eligible employee’s Gross Payroll
Amount that may be deducted and applied to the purchase of Shares hereunder
(which percentage shall be uniform as to all eligible employees), and a maximum
number of Shares that may be purchased by an eligible employee hereunder. An
eligible employee may elect to purchase all or any part of such maximum number
of Shares by so indicating in such employee’s Election and Authorization form.

     (b)     The amount of any payroll deduction made pursuant to Section 8, or of
any payment to be made hereunder to an employee or his legal representative, in
a currency other than United States dollars shall be converted to or from
United States dollars, as the case may be, based on the exchange rate in effect
on the date the Company receives such deduction or makes such payment,
respectively. The Committee shall determine the applicable exchange rate by
any reasonable method, which may be based on the exchange rate actually
available to the Company in the ordinary course of business on the date of such
conversion.

     (c)     If at any time during a Purchase Period the number of Shares which all
eligible employees have duly elected to purchase through authorized payroll
deductions but which have not yet been purchased (the “aggregate Shares
elected”) would cause the aggregate number of Shares to be acquired in the
Purchase Period to exceed the number of Shares designated by the Committee as
available for purchase in such Purchase Period, the Shares which may thereafter
be purchased by each employee shall be reduced from the number so elected on a
pro rata basis in the proportion that the number of Shares so elected by each
such employee bears to the aggregate number of Shares elected by all such
employees. The reductions shall be determined by the Committee by any
reasonable method such that the aggregate number of Shares sold in the Purchase
Period shall be not more than and as nearly equal as possible to the number of
Shares originally designated by the Committee as available for purchase in such
Purchase Period. No fractional Shares may be purchased unless the Committee
otherwise provides.

     (d)     Notwithstanding any other provision of this Plan, no employee shall be
entitled to purchase Shares in any Purchase Period to the extent such purchase
would permit such employee to accrue (as determined under Section 423 of the
Code) the right to purchase under this Plan and under all other employee stock
purchase plans of the Company and its subsidiaries, the right or option to so
purchase at a rate which exceeds $25,000 of Fair Market Value of such stock,
determined at the time such right or option is granted, for any calendar year
in which such right or option is outstanding at any time.

	6.	 	SHARES SUBJECT TO THE PLAN.

     The Shares, which may be offered under this Plan, may be authorized and
issued Common Stock, authorized and unissued Common Stock or Common Stock
reacquired by the Company and held in its treasury. The maximum aggregate
number of shares of Common Stock which may be made available by the Committee
for purchase and issued under this Plan is

 

 

200,000, subject to any increase or decrease pursuant to Section 11. All
Shares offered in any Offering, which for any reason are not purchased, shall
be included in the Shares available for subsequent Offerings.

	7.	 	PRICE.

     The price at which Shares may be purchased in any Purchase Period shall be
85% of the lower of the Fair Market Value of the Common Stock on the first day
of the Purchase Period and the last day of the Purchase Period on which the
Common Stock is traded (or if the Common Stock is not listed for trading, on
the first or last business day of the Purchase Period) or such greater
percentage as determined by the Committee with the approval of the Board.

	8.	 	PAYROLL DEDUCTIONS; PURCHASE OF SHARES; RIGHTS OF CANCELLATION; RIGHTS ON
TERMINATION OF EMPLOYMENT OR DEATH.

     (a)     Except as otherwise provided herein, Shares purchased under this Plan
shall be paid for by payroll deductions during the Purchase Period. All funds
received under this Plan, either through payroll deductions or cash deposits,
shall be applied to the purchase of Common Stock hereunder as of the last day
of a Purchase Period on which the Common Stock is traded, or if the Common
Stock is not listed for trading, on the last business day of a Purchase Period.
Such Shares shall be issued to individual employees as soon as practicable
after the purchase.

     (b)     Each employee may cancel his election to purchase additional Shares
through payroll deductions in any Purchase Period under this Plan by giving not
less than thirty days prior written notice of cancellation to the Company on
the form prescribed by the Company. In such case, no further amounts shall be
withheld for the account of such employee through payroll deductions in respect
of such Purchase Period (but such employee shall not be precluded from
participating in a subsequent Purchase Period by reason of such revocation).
Any amount theretofore deducted under this Plan for such employee’s account and
not yet applied to the purchase of Shares shall be refunded to the employee.

     (c)     If the employment with the Company or any Designated Subsidiary of any
eligible employee who has delivered a completed and duly executed Election and
Authorization form for any Purchase Period (an “electing employee”) shall
terminate prior to the end of such Purchase Period because of his Retirement or
death, or because the Subsidiary with which he is employed ceases to be a
Designated Subsidiary during such Purchase Period, then all further payroll
deductions hereunder shall cease and amounts theretofore deducted under the
Plan for his account shall be applied to purchase Shares in accordance with the
otherwise applicable provisions of the Plan. If the full time regular
employment of any eligible employee with the Company or a Designated Subsidiary
shall terminate prior to the end of a Purchase Period for any other reason,
then the electing employee shall be deemed to have revoked his election to have
payroll deductions made and applied to purchase Shares in the Purchase Period
as of the date of such termination and the amount theretofore deducted under
the Plan for his account and not applied to the purchase of Shares shall be
paid to such employee as soon as practicable. The transfer of an eligible
employee from the Company or a Designated Subsidiary to another

 

 

Designated Subsidiary or to the Company or to any affiliate as defined in
Section 414 of the Code, shall not constitute a termination of employment under
this Section 8.

     (d)     No employee may modify the percentage of Gross Payroll Amount that he
has elected to have deducted on the Election and Authorization form delivered
to the Company unless pursuant to a revocation or cancellation hereunder, or
unless the Committee otherwise provides as to all eligible employees.

	9.	 	ISSUANCE OF SHARES.

     No employee shall have any rights as a stockholder with respect to any
Shares, which he may elect to purchase under the Plan prior to the date of
purchase of such Shares. At the end of each Purchase Period, certificates
representing Shares purchased under this Plan for each employee shall be issued
as soon as practicable and delivered to such employee.

	10.	 	ASSIGNABILITY.

     No assignment or transfer by an employee, former employee or his legal
representative of any option, election to purchase Shares, or any other
interest under this Plan will be recognized or of any force or effect; any
purported assignment or transfer, whether voluntary or by operation of law
(except by will or the laws of descent and distribution), shall have the effect
of terminating such option, election to purchase or other interest. An
employee’s option and election to purchase shall be exercisable, during his
lifetime, only by him. If an election to purchase is terminated by reason of
the provisions of this Section 10, the only right thereafter continuing shall
be the right to have the amount of payroll deductions then credited to the
employee’s account which have not been applied to the purchase of Shares paid
to the employee or his legal representative.

	11.	 	ADJUSTMENTS IN EVENT OF CHANGE IN CAPITALIZATION.

     In the event of any Change in Capitalization, then the aggregate number
and kind of Shares or other securities which thereafter may be sold under the
Plan and the number and kind of Shares or other securities which may be
purchased under any outstanding Offering and the purchase price thereof shall
be appropriately adjusted consistent with such change in such manner as the
Committee may deem equitable to prevent substantial dilution or enlargement of
the rights granted to, or available for, eligible employees under the Plan and
any such adjustment determined by the Committee in good faith shall be binding
and conclusive on the Company, Designated Subsidiaries and all employees and
their respective heirs, executors, administrators, successors and assigns.

	12.	 	EFFECT OF CHANGE IN CONTROL.

     (a)     In the event of a Change in Control caused by the liquidation or
dissolution of the Company, the Purchase Period then in progress will terminate
immediately prior to the consummation of such liquidation or dissolution,
unless otherwise provided by the Board in its sole discretion, all rights to
purchase Shares under the Plan shall terminate and all amounts

 

 

credited to employee accounts which have not been applied to the purchase of
Shares shall be refunded.

     (b)     In the event of any Change in Control not caused by the liquidation or
dissolution of the Company after which the Company is not the Surviving
Corporation, then in the sole discretion of the Committee, (i) a date
established by the Board on or up to 10 days before the date of consummation of
such Change in Control shall be treated as the last day of the Purchase Period
then in progress or (ii) all rights to purchase Shares under the Plan shall
terminate and all amounts credited to employee accounts which have not been
applied to the purchase of Shares shall be refunded.

	13.	 	ADMINISTRATION OF THE PLAN.

     (a)     The Plan shall be administered by the Committee, which shall hold
meetings at such times as may be necessary for the proper administration of the
Plan. The Committee shall keep minutes of its meetings. A quorum shall
consist of not fewer than two members of the Committee and a majority of a
quorum may authorize any action. Any decision or determination reduced to
writing and signed by a majority of all of the members of the Committee shall
be as fully effective as if made by a majority vote at a meeting duly called
and held. The Committee shall be the Compensation Committee of the Board of
Directors, which shall consist of at least two (2) directors of the Company and
may consist of the entire Board; provided, however, that if the Committee
consists of less than the entire Board, each member shall be a Non-employee
Director. No member of the Committee shall be liable for any action, failure
to act, determination or interpretation made in good faith with respect to this
Plan or any transaction hereunder, except for liability arising from his or her
own willful misfeasance, gross negligence or reckless disregard for his or her
duties. The Company hereby agrees to indemnify each member of the Committee
for all costs and expenses and, to the extent permitted by applicable law any
liability incurred in connection with defending against, responding to,
negotiating for the settlement of or otherwise dealing with any claim, cause of
action or dispute of any kind arising in connection with any actions in
administering this Plan or authorizing or denying authorization to any
transaction hereunder.

     (b)     Subject to the express terms and conditions set forth herein, the
Committee shall have the power from time to time to:

          (1)     construe and interpret the Plan and the rights granted hereunder and
to establish, amend and revoke rules and regulations for the administration of
the Plan, including, without limitation, correcting any defect or supplying any
omission, or reconciling any inconsistency in the Plan or in any Agreement, in
the manner and to the extent it shall deem necessary or advisable so that the
Plan complies with applicable law and the Code to the extent applicable, and
otherwise to make the Plan fully effective. All decisions and determinations
by the Committee in the exercise of this power shall be final, binding and
conclusive upon the Company, its Subsidiaries, employees participating in the
Plan and all other persons having any interest therein;

 

 

          (2)     determine the duration and purposes for leaves of absence which may be
granted to an employee on an individual basis without constituting a
termination of employment or service for purposes of the Plan:

          (3)     exercise its sole discretion with respect to the powers and rights
granted to it as set forth in the Plan; and

          (4)     generally, to exercise such powers and to perform such acts as are
deemed necessary or advisable to promote the best interest of the Company with
respect to the Plan.

     (c)     Notwithstanding the foregoing, all employees participating in the Plan
shall have the same rights and privileges under the Plan, except to the extent
permitted by Section 423(b)(5) of the Code. No member of the Board, no
employee of the Company and no member of the Committee (nor the Committee
itself) shall be liable for any act or action hereunder, whether of omission or
commission, by any other member or employee or by any agent to whom duties in
connection with the administration of the Plan have been delegated or, except
in circumstances involving his bad faith, gross negligence or fraud, for
anything done or omitted to be done by himself. The Company or the Committee
may consult with legal counsel, who may be counsel for the Company or other
counsel, with respect to its obligations or duties hereunder, or with respect
to any action or proceeding or any question of law, and shall not be liable
with respect to any action taken or omitted by it in good faith pursuant to the
advice of such counsel.

	14.	 	COMPLIANCE WITH GOVERNMENT LAW AND REGULATIONS; GOVERNING LAW.

     This Plan, each Offering hereunder, and the obligation of the Company to
sell and deliver Common Stock hereunder shall be subject to all applicable
Federal and state laws, rules and regulations and to such approvals by any
governmental or regulatory agency as may from time to time be required. The
Board may make such changes in this Plan as may be necessary or desirable, in
the opinion of the Board, to comply with the laws, rules and regulations of any
governmental or regulatory authority, or to be eligible for tax benefits under
the Code, or any other laws or regulations of any Federal, state, local or
foreign government. This Plan and actions taken in connection herewith shall
be governed and construed in accordance with the laws of the State of Maryland
(regardless of the law that might otherwise govern under applicable Maryland
principles of conflict of laws).

	15.	 	COMPANY’S PAYMENT OF EXPENSES RELATED TO THE PLAN.

     Except as otherwise specifically provided herein, the Company will bear
all expenses incurred in administering this Plan, including any brokerage fees
incurred upon the purchase of Shares.

 

 

16.      
PLAN AND RIGHTS TO PURCHASE COMMON STOCK NOT TO CONFER RIGHT WITH RESPECT
TO CONTINUANCE OF EMPLOYMENT.

     This Plan and any Offering or other rights to purchase Common Stock
granted under this Plan shall not confer upon any employee any right with
respect to continuance of employment by the Company or any Subsidiary, nor
shall they be a limitation in any way on the right of the Company or any
Subsidiary by which an employee is employed to terminate his employment at any
time.

	17.	 	WITHHOLDING OF TAXES.

     The Company shall have the right to deduct from any payment to be made
pursuant to this Plan, or to otherwise require, prior to the issuance or
delivery of any Shares or the payment of any cash hereunder, payment by each
eligible employee of, any taxes required by applicable law to be withheld. The
Committee may permit any such withholding obligation to be satisfied by
reducing the number of Shares otherwise deliverable.

	18.	 	GENERAL.

     (a)     The Committee shall accumulate and hold for each employee’s account
any amounts deducted from his compensation pursuant to this Plan and amounts
deposited as a lump sum payment and shall maintain book-entry accounts for each
electing employee to account for payroll deductions made by the employee.
Interest will not be credited or paid with respect to any account hereunder.
Any amounts deducted that are not used to purchase Shares will be refunded to
the employee.

     (b)     Unless the Committee otherwise provides, only full Shares may be
purchased under this Plan. After each Purchase Period, each employee shall
receive a cash payment of the amount deducted from such employee’s compensation
that has not been applied to purchase Shares.

     (c)     In the event of a termination of the Plan during a Purchase Period,
all amounts credited to employee accounts hereunder, which have not been
applied to the purchase of Shares, shall be refunded to the employees for whose
accounts they are credited.

     (d)     Payment for the purchase price of Shares hereunder shall be made in
United States dollars.

	19.	 	NOTICE OF DISPOSITION.

     Each participant shall notify the Company in writing if the participant
disposes of any of the Shares purchased in any Offering Period pursuant to this
Plan if such disposition occurs within two (2) years from the Offering Date or
within one (1) year from the Purchase Date on which such Shares were purchased
(the “Notice Period”).

 

 

	20.	 	AMENDMENT OR DISCONTINUANCE.

     Notwithstanding any other provision of this Plan, the Board may at any
time, and from time to time, amend, in whole or in part, any or all of the
provisions of the Plan, or suspend or terminate it entirely, retroactively or
otherwise; provided, however, that any such amendment, suspension or
termination may not, without the employee’s consent, adversely affect any
rights outstanding at the time of such amendment, suspension or termination to
purchase Shares for the balance of a Purchase Period pursuant to any Offering
hereunder. The Plan will terminate in any event when the Committee determines
that all or substantially all of the Shares reserved for purposes of the Plan
have been issued, unless the stockholders of the Company approve additional
Shares for issuance.

	21.	 	CONSTRUCTION.

     Wherever any words are used in this Plan in the masculine gender they
shall be construed as though they were also used in the feminine gender in all
cases where they would so apply, and wherever any words are used herein in the
singular form they shall be construed as though they were also used in the
plural form in all cases where they would so apply. The titles to sections of
this Plan are intended solely as a convenience and shall not be used as an aid
in construction of any provisions thereof.

	22.	 	NAME.

     This Plan shall be known as the “BioReliance Corporation Employee Stock
Purchase Plan.”

	23.	 	TERM; STOCKHOLDER APPROVAL.

     After this Plan is adopted by the Board, this Plan will become effective
on the day of the first Offering. This Plan shall be submitted to stockholders
of the Company for approval at the 2002 annual meeting of stockholders, in any
manner permitted by applicable corporate law, within twelve (12) months before
or after the date this Plan is adopted by the Board. If the Plan is not so
approved by the stockholders of the Company, the Plan and all rights hereunder
to purchase Shares shall immediately terminate, and all amounts credited to
employee accounts that have not been applied to the purchase of Shares shall be
refunded. This Plan shall continue until the earlier to occur of (a)
termination of this Plan by the Board (which termination may be effected by the
Board at any time), (b) issuance of all of the shares of Common Stock reserved
for issuance under this Plan, or (c) failure of the stockholders of the Company
to approve the Plan in accordance with this Section 23.

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