Document:

exv10w3

Exhibit 10.3

August 12, 2010

Emergent BioSolutions Inc.

2273 Research Boulevard

Suite 400

Rockville, MD

     Re: Emergent BioSolutions Inc. — Lock-Up Agreement (this “Letter Agreement”)

Ladies and Gentlemen:

     The undersigned understands that Emergent BioSolutions Inc., a Delaware corporation
(“Parent”), 35406 LLC, a Delaware limited liability company and wholly owned direct
subsidiary of Parent (the “LLC”), 30333 Inc., a Delaware corporation and wholly owned
indirect subsidiary of Parent (“Merger Sub”), and Trubion Pharmaceuticals, Inc., a Delaware
corporation (the “Company”), have entered into an Agreement and Plan of Merger dated as of
12, 2010 (the “Merger Agreement”), pursuant to which the Merger Sub will merge (the
“Merger”) with and into the Company, with the Company surviving the Merger as an indirect
subsidiary of Parent, and then merging with and into the LLC with the LLC being the surviving
entity of the LLC Merger. Capitalized terms used and not otherwise defined herein shall have the
meanings ascribed to such terms in the Merger Agreement. In connection with the Merger, Parent will
issue to the security holders of the Company, including the undersigned, the Stock Merger
Consideration.

     To induce Parent to consummate the Merger and to issue the Stock Merger Consideration, the
undersigned hereby agrees that, without the prior written consent of Parent, it will not for a
period of ninety (90) days from the Effective Time (the “Lock-Up Period”) (1) offer,
pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, directly or indirectly, the Stock Merger Consideration or any
securities convertible into or exercisable or exchangeable for the Stock Merger Consideration or
(2) enter into any swap or other agreement that transfers, in whole or in part, any of the economic
consequences of ownership of the Stock Merger Consideration, whether any such transaction described
in clause (1) or (2) above is to be settled by delivery of the Stock Merger Consideration, such
other securities, in cash or otherwise. Following the expiration of the Lock-Up Period, the
undersigned agrees that the foregoing restrictions will continue to apply to the Stock Merger
Consideration except that (a) for a period of ninety (90) days after the expiration of the Lock-Up
Period, the undersigned may take any such action referred to in clause (1) or (2) above in respect
of up to twenty-five percent (25%) of the Stock Merger Consideration received by the undersigned at
the Effective Time, (b) for a period of one hundred eighty (180) days after the expiration of the
Lock-Up Period, the undersigned may take any such action referred to in clause (1) or (2) above in
respect of up to fifty percent (50%) of the Stock Merger Consideration received by the undersigned
at the Effective Time, (c) for a period of two-hundred seventy (270) days after the expiration of
the Lock-Up Period, the undersigned may take any such action referred to in clause (1) or (2) above
in respect of up to seventy-five percent (75%) of the Stock Merger Consideration received by the
undersigned at the Effective Time and (d) after a period of three hundred sixty (360) days after
the expiration of the Lock-Up Period, the restrictions imposed by this Letter Agreement shall no
longer apply. Notwithstanding the foregoing, (A) if a Parent Acceleration Event occurs prior to
the date that is one hundred eight (180) days after the Effective Time (such date, the “Six Month
Anniversary”), the restrictions set forth in clauses (1) and (2) above will continue to apply to
the Stock Merger Consideration

 

 

except that (y) for a period of one hundred eighty (180) days after the Effective Time, the
undersigned may take any such action referred to in clauses (1) and (2) above in respect of up to
fifty percent (50%) of the Stock Merger Consideration received by the undersigned at the Effective
Time and (z) after the Six Month Anniversary, the restrictions imposed by this Letter Agreement
shall no longer apply, and (B) if a Parent Acceleration Event occurs after the Six Month
Anniversary, the restrictions imposed by this Letter Agreement shall lapse immediately upon the
occurrence of such Parent Acceleration Event. “Parent Acceleration Event” shall be deemed
to have occurred if, at any time during the applicable period, both (1) the closing sale price per
share for shares of Parent Common Stock (as defined in the Merger Agreement) on the New York Stock
Exchange for any 20 trading days (which need not be consecutive) during a consecutive 30 calendar
day period shall exceed 120% of the Parent Average Stock Price (as defined in the Merger Agreement)
and (2) Parent shall issue any shares of Parent Common Stock (as defined in the Merger Agreement)
in connection with any financing transaction, including any private placement or public offering.

     The restrictions imposed by this Letter Agreement shall not apply to the transfer or
disposition of the Stock Merger Consideration (1) as a bona fide gift, (2) to any trust for the
direct or indirect benefit of the undersigned or the immediate family of the undersigned in a
transaction not involving a disposition for value, (3) to any corporation, partnership, limited
liability company or other entity all of the beneficial ownership interests of which are held by
the undersigned or the immediate family of the undersigned in a transaction not involving a
disposition for value, (4) by will, other testamentary document or intestate succession to the
legal representative, heir, beneficiary or a member of the immediate family of the undersigned, (5)
as a distribution to partners, members or stockholders of the undersigned in a transaction not
involving a disposition for value or (6) to any affiliate of the undersigned or any investment fund
or other entity controlled or managed by the undersigned in a transaction not involving a
disposition for value; provided that, in each case, the transferee, distributee or donee agrees in
writing to be bound by the terms of this Letter Agreement to the same extent as if a party hereto.
For purposes of this Letter Agreement, “immediate family” shall mean any relationship by blood,
marriage or adoption, not more remote than first cousin. Additionally, any discretionary waiver or
termination of the restrictions set forth in this Letter Agreement by Parent shall apply pro rata
to all Company Stockholders subject to substantially similar letter agreements entered into in
connection with the Merger, based on the number of shares subject to such agreements.

     In furtherance of the foregoing, the Parent, and any duly appointed transfer agent for the
registration or transfer of the securities described herein, are hereby authorized to decline to
make any transfer of securities if such transfer would constitute a violation or breach of this
Letter Agreement.

     The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Letter Agreement. All authority herein conferred or agreed to be
conferred and any obligations of the undersigned shall be binding upon the successors, assigns,
heirs or personal representatives of the undersigned.

     The undersigned understands that the Parent is relying upon this Letter Agreement in entering
into and consummating the Merger. The undersigned further understands that this Letter Agreement is
irrevocable and shall be binding upon the undersigned’s heirs, legal representatives, successors
and assigns.

 

 

This Letter Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware, without regard to the conflict of laws principles thereof.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	ARCH Venture Fund V, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ARCH Venture Partners V, L.P.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ARCH Venture Partners V, L.L.C.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: 

	 	 
	 

	 	 	 	Its:       Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	ARCH V Entrepreneurs Fund V, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ARCH Venture Partners V, L.P.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ARCH Venture Partners V,
L.L.C.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: 

	 	 
	 

	 	 	 	Its:       Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	Healthcare Focus Fund, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ARCH Venture Partners V, L.P.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ARCH Venture Partners V,
L.L.C.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: 

	 	 
	 

	 	 	 	Its:       Managing Director	 	 

[Signature
Page to Lock-Up Letter]

 

 

This Letter Agreement shall be governed by and
construed in accordance with the laws of the
State of Delaware, without regard to the conflict
of laws principles thereof.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	Frazier Healthcare IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FHM IV, LP	 	 
	 

	 	 	 	Its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

	 	FHM IV, LLC

Its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

	 	 	 	 
	 

	 	 	 	 

Name: Tom Hodge

Its:
	 	 
	 
	 	 	 	 	 	 
	 	 	Frazier Affiliates IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FHM IV, LP

Its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FHM IV, LLC	 	 
	 

	 	 	 	Its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: Tom Hodge
	 	 
	 

	 	 	 	Its:	 	 
	 
	 	 	 	 	 	 
	 	 	Frazier Healthcare III, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FHM III, LLC	 	 
	 

	 	 	 	Its 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: Tom Hodge
	 	 
	 

	 	 	 	Its:	 	 
	 
	 	 	 	 	 	 
	 	 	Frazier Affiliates III, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	FHM III, LLC	 	 
	 

	 	 	 	Its 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: Tom Hodge
	 	 
	 

	 	 	 	Its:	 	 

[Signature Page to Lock-Up Letter]

 

 

This Letter Agreement shall be governed by and
construed in accordance with the laws of the State
of Delaware, without regard to the conflict of
laws principles thereof.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	Venrock Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Venrock Partners Management LLC,	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	Venrock Associates IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Venrock Management IV, LLC,	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	Venrock Entrepreneurs Fund IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	VEF Management IV, LLC,	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: David L. Stepp
	 	 
	 

	 	 	 	Its: Authorized Signatory	 	 

[Signature Page to Lock-Up Letter]

 

 

This Letter Agreement shall be governed by and
construed in accordance with the laws of the State
of Delaware, without regard to the conflict of
laws principles thereof.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	Prospect Venture Partners II, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Prospect Management Co. II, LLC	 	 
	 

	 	 	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: David Markland
	 	 
	 

	 	 	 	Its: Attorney-In-Fact	 	 
	 
	 	 	 	 	 	 
	 	 	Prospect Associates II, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Prospect Management Co. II, LLC	 	 
	 

	 	 	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: David Markland
	 	 
	 

	 	 	 	Its: Attorney-In-Fact	 	 

[Signature Page to Lock-Up Letter]exv10w1

Exhibit 10.1

May 26, 2010

Kurt R. Widmer

Craft Brewers Alliance, Inc.

929 North Russell Street

Portland, OR 97227

Dear Kurt:

     The purpose of this letter is to set forth our understanding about your continued employment
as Chairman of the Board of Craft Brewers Alliance, Inc. (the “Company”). Effective as of July 1,
2010, this letter supersedes and replaces any agreement regarding your employment by the Company,
including, without limitation, your Employment Agreement dated June 30, 2008; provided, however,
that this letter does not supersede or replace your Non-Competition/Non-Solicitation Agreement with
the Company dated June 30, 2008.

     Your employment is “at-will,” which means you or the Company may end the employment
relationship at any time. Our mutual agreement regarding your salary, severance, and other
benefits and obligations is set forth below.

Compensation and Benefits

     Your base salary for the six-month period ending December 31, 2010, will be $115,875, and for
the 12-month period ending December 31, 2011, will be $200,000 (in all cases before standard tax
withholdings and other payroll deductions). Your base salary level will be reviewed annually for
adjustment beginning January 1, 2012, by the Compensation Committee. In addition, you are entitled
to participate in all of the Company’s employee benefit programs for which you are eligible,
including long-term incentive awards approved by the Compensation Committee for key employees from
time to time.

Bonus

     For the balance of 2010, you will be eligible for a target bonus of $25,000, and for 2011 you
will be eligible for a target bonus of $75,000, in each case conditioned upon achieving such
corporate or individual performance goals as may be approved by the Compensation Committee or Board
of Directors.

 

 

Kurt R. Widmer

May 26, 2010

Page 2

     Thereafter, you will be eligible for a yearly bonus, in an amount to be approved by the
Compensation Committee. All or a portion of such bonus may be conditioned upon achieving certain
performance targets approved by the Compensation Committee or Board of Directors.

Severance

     In the event that your employment with the Company is terminated by the Company for any reason
other than “for cause” or by you due to “good reason,” the Company will continue to pay your
monthly base salary at the rate in effect on the date of termination in accordance with the
Company’s normal payroll schedule commencing on the day following termination and extending for a
period (the “Severance Period”) of 12 months.

     In addition, the Company will promptly (in no event later than March 15 of the calendar year
after the year in which your employment terminated) make a cash payment to you in an amount equal
to 100% of your unused Paid Time Off (“PTO”) hours accrued through the date of termination in
accordance with the provisions of the Company’s PTO Plan then in effect.

     If you become entitled to severance benefits under this agreement, the Company will also
continue to provide you during the Severance Period the same health benefits as were being provided
to you at the time of termination; provided, however, that such benefits shall terminate in the
event you find new employment with comparable health coverage.

     For purposes of this letter, “for cause” means that you have engaged in conduct which has
substantially and adversely impaired the interests of the Company, or would be likely to do so if
you were to remain employed by the Company; you have engaged in fraud, dishonesty or self-dealing
relating to or arising out of your employment with the Company; you have violated any criminal law
relating to your employment or to the Company; you have engaged in conduct which constitutes a
material violation of a significant Company policy or the Company’s Code of Conduct and Ethics,
including, without limitation, violation of policies relating to discrimination, harassment, use of
drugs and alcohol, and workplace violence; or you have repeatedly refused to obey lawful directions
of the Company’s Board of Directors.

     For purposes of this letter, “good reason” means the occurrence of one or more of the
following events without your consent: (a) a material reduction in your authority, duties, or
responsibilities as the Company’s Chairman of the Board; (b) a material reduction in the authority,
duties, or responsibilities of the person or persons to whom you report (including, if applicable,
a requirement that you report to a Company officer or employee instead of reporting directly to the
Company’s Board of Directors); or (c) a relocation of your principal office to a location that is
more than 100 miles from Portland, Oregon; provided, however, that “good reason”
shall only be deemed to have occurred if: (i) within 90 days after the initial existence of the
circumstances constituting “good reason,” you provide the Company with a written notice describing
such circumstances, (ii) the Company fails to cure the circumstances within 30 days after the
Company receives your notice, and (iii) you terminate your employment with the Company and all the
members of the Company’s controlled group within 90 days of the date of your notice.

 

 

Kurt R. Widmer

May 26, 2010

Page 3

     For purposes of this letter, a termination of your employment will be deemed to occur only
when or if there has been a “separation from service” as such term is defined in Treasury
Regulation Section 1.409A-1(h).

     If, during the Severance Period, you become employed or associated with a brewing or other
company that the Company determines, in its reasonable discretion, is a competitor of the Company
or the portion of Anheuser-Busch, Inc.’s business relating to alcoholic beverages, your severance
payments and benefits under this letter agreement will terminate as of the effective date of such
employment or association. This is in addition to, and not in place of, the restrictions set forth
in your Non-Competition Agreement/Non-Solicitation Agreement with the Company.

     The total amount of severance payments and other benefits (except benefits described in
Treasury Regulation Sections 1.409A-1(a)(5) or 1.409A-(b)(9)(v)) provided to you pursuant to this
letter agreement shall not exceed two times the lesser of (i) the sum of your annualized
compensation based upon your annual salary in the year preceding the year in which your employment
is terminated (adjusted for any increase during that year that was expected to continue
indefinitely if your employment had not terminated) or (ii) the applicable dollar limit under
Section 401(a)(17) of the Internal Revenue Code for the calendar year in which your employment is
terminated.

     The severance payments and other benefits under this letter are intended to be exempt from the
requirements of Section 409A of the Internal Revenue Code by reason of all payments under this
Agreement being either “short-term deferrals” within the meaning of Treasury Regulation
Section 1.409A-1(b)(4) or separation pay due to involuntary separation from service under Treasury
Regulation Section 1.409A-1(b)(9)(iii). All provisions of this letter shall be interpreted in a
manner consistent with preserving these exemptions.

     The Company will require you to execute an appropriate general release of claims that you may
have relating to your employment at the Company and termination of your employment as a condition
to your receipt of severance payments or other benefits other than those required by law or
provided to employees generally. If such general release of claims is not executed within 30 days
following the date your employment with the Company is terminated, all severance payments and other
benefits payable after such 30-day period will be forfeited, and you agree to repay any severance
payments, and the value of any other benefits, paid to you during such period.

Code of Conduct

     By your signature below, you agree to comply with the Company’s Code of Conduct and Ethics as
in effect from time to time, and to be subject to the Company’s policies and procedures in effect
from time to time for directors and employees of the Company.

 

 

Kurt R. Widmer

May 26, 2010

Page 4

     We appreciate your continued efforts on behalf of the Company, and look forward to working
with you for years to come.

	 	 	 	 	 

	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ David Lord 
	 	 
	 

	 	David Lord	 	 
	 

	 	Chairman of Compensation Committee 

of Board of Directors
	 	 

	 	 	 

	Acknowledged and Agreed:
	 	 
	 
	/s/ Kurt R. Widmer
 

	 	 
	Kurt R. Widmer
	 	 
	 
	 	 
	Date: July 8, 2010

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