Document:

exv10w1

 

Exhibit 10.1

SEPARATION AGREEMENT 

     This Separation Agreement (the “Agreement”) dated as of December 14, 2006 (the “Effective
Date”) is made by and between Patrick K. Donnelly (“Executive”) and Pharmaceutical Research
Associates, Inc., a Virginia corporation (the “Company” or the “Employer”) (collectively referred
to as the “Parties”).

     WHEREAS, Executive has been the President and Chief Executive Officer of the Company and a
member of the Board of Directors of the Company (the “Board”);

     WHEREAS, the Company and Executive entered into an Employment Agreement, dated as of February
3, 2006 (the “Employment Agreement”);

     WHEREAS, the Company and Executive have agreed that Executive’s employment with the Company
will terminate pursuant to Section 7(d) of the Employment Agreement and Executive desires to resign
as a director of the Board and from his membership on any boards of affiliated companies; and

     WHEREAS, the Parties wish to clarify their duties and obligations upon Executive’s separation
from the Company.

     NOW THEREFORE, in consideration of the promises made herein, the Parties hereby agree as
follows. Capitalized Terms used herein and not otherwise defined shall have the meaning given to
such terms in the Employment Agreement.

     1. Resignation of Employment and as a Director.

               (a) Executive’s service as President and Chief Executive Officer of the Company hereby
terminates on the Effective Date. Executive hereby, as of the Effective Date, resigns his
position as a member of the Board. Executive hereby, effective as of the Effective Date, resigns
from every position Executive holds as an officer or director of any of the Company’s parents,
subsidiaries or affiliated entities, both domestic and foreign. The Company will forthwith
remove Executive as a signatory to all checking accounts and remove him from all foreign and
domestic government and statutory filings.

               (b) From the Effective Date through December 31, 2006 Executive will continue as an
“at-will” employee of the Company, but not as an officer of the Company. Executive’s service as
an employee of the Company will terminate on December 31, 2006 (the “Termination Date”).

               (c) Executive’s termination of employment with the Company on the Termination Date shall be
deemed to be a termination by the Employer without Cause
pursuant to Section 7(d) of the Employment Agreement. Executive hereby agrees to waive the
30 day notice provision contained in Section 7(d) of the Employment Agreement. To the extent
that the terms of this Agreement differ from those of Section 7(d) of the Employment Agreement,
the terms of this Agreement shall supersede the terms of the Employment Agreement.

 

 

     2. Consideration. Subject to the effectiveness of this Agreement and Executive’s
continued compliance with his obligations under this Agreement, the Company agrees to provide
Executive with the following:

          (a) Accrued Compensation. The Company shall make a lump sum payment to Executive equal to:
(a) all of Executive’s accrued but unpaid regular base salary, which is owed to Executive through
the Termination Date; (b) all of Executive’s accrued but unpaid vacation time as of the Termination
Date; and (c) all unpaid reasonable and necessary business expenses incurred by Executive in
connection with the Company’s business through the Termination Date, in accordance with the
Company’s reimbursement policies in effect as of the Termination Date (collectively, the “Accrued
Compensation”). The Company shall pay the Accrued Compensation to Executive as soon as reasonably
practical following the Termination Date but no later than January 8, 2007, with the exception of
expense reimbursement claims, which will be paid in accordance with the Company’s reimbursement
policies.

          (b) Severance. Subject to Executive signing the General Release of Claims attached hereto as
Exhibit A (the “Release”) and Executive’s continued compliance with Section 11,
Executive shall receive:

               (i) A total severance payment equal to $1,000,000, which amount shall be payable in equal
installments during the twenty-nine (29) month period following the Termination Date in accordance
with the Company’s regular payroll practice; and

               (ii) reimbursement or direct payment to the carrier for the premium costs under COBRA for
Executive and to the extent applicable, his spouse and dependents, to continue coverage for
eighteen months following the Termination Date under the Company’s group medical plan known as
Cigna Gold Plan, as such plan may be amended from time to time for, or in such replacement plan as
may be offered to, all participants in such plan.

Notwithstanding anything to the contrary in this Section 2, no payments in this Section
2 will be paid during the six-month period following Executive’s termination of employment
unless the Company determines, in its good faith judgment, that paying such amounts at the time or
times indicated in this Section would not cause Executive to incur an additional tax under Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”) (in which case such amounts
shall be paid at the time or times indicated in this Section). If the payment of any amounts are
delayed as a result of the previous sentence, on the first day following the end of the six-month
period, the Company will pay Executive a lump-sum amount equal to the cumulative amount that would
have otherwise been paid to Executive under this Agreement during such six month period.

          (c) Consulting.

               (i) The Company shall retain Executive’s services, and Executive agrees to provide reasonable
consulting services to the Company, for the period commencing on the Termination Date and ending on
June 30, 2008 (the “Consulting Period”), as specified in this Section 2(c).

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               (ii) During the Consulting Period, Executive will render to the Company such services of a
consultative nature as the Company reasonably may request with respect to the Company’s business,
so that the Company may continue to have the benefit of Executive’s experience and knowledge of the
affairs of the Company. Executive shall be available to provide such services at reasonable times
(consistent with Executive's other professional and personal obligations as may from time to time exist) by telephone, letter, e-mail, or in person. For each day or portion thereof in the first six
months of the Consulting Period that the Company requests that Executive render consulting services
to the Company and Executive actually renders such consulting services to the Company, the Company
agrees to pay Executive a per diem of $2,000 (the “Per Diem Payment”) payable within fifteen (15)
calendar days following the date that Executive submits documentation reasonably acceptable to the
Company (directed to the Chairman of the Board) that evidences Executive’s rendering of consulting
services. For the remainder of the Consulting Period following the initial six month period, the
Company agrees to pay Executive an amount equal to the difference between (a) $200,000 and (b) the
aggregate Per Diem Payments that Executive is paid for his consulting services to the Company under
this Agreement for the initial six month period, payable ratably and on a monthly basis in arrears
over the remaining Consulting Period.

               (iii) During the Consulting Period, the Company agrees to reimburse Executive for reasonable
travel, lodging, telephone, and similar ordinary and necessary business expenses, in accordance
with reimbursement policies established under the Executive’s Employment and Non Competition
Agreement, incurred in connection with any consulting services provided under Section 10 of this
Agreement and for which proper supporting documentation has been submitted to the Company by
Executive.

          (d) Other. Executive shall not be required to return his cell phone-Blackberry to the
Company and Executive may elect to transfer the phone number to a personal account. Executive
shall not be required to return computer equipment maintained in his home office, including but
not limited to laptop pc, printer, docking station and other connection devices, power cords,
surge protectors, etc.; provided, that upon the request of the Company, the Executive shall
permit the Company’s technology staff to examine such equipment and, to the extent necessary,
remove any confidential or proprietary information of the Company (not including Executive’s
Rolodex-type contact information) and any software for which the Company’s license is no longer
applicable. The Company shall have no liability or obligations with respect to the cell phone
after the Termination Date, except with respect to reasonable business expenses incurred by
Executive prior to the Termination Date or incurred by Executive while providing consulting
services to the Company.

        3. Options.

          (a) Executive’s outstanding options (the “Options”) to purchase shares of common stock (the
“Shares”) of PRA International, a Delaware corporation (“Parent”) that are vested on the
Termination Date will continue to be governed by the terms of the applicable
option agreement (the “Option Agreement”) and the PRA International 2004 Incentive Award
Plan through which the Options were granted, except as provided in Section 3(b). Executive’s
Options that are unvested as of the Terminated Date will be forfeited on the Termination Date.

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          (b) Executive’s vested Options that were granted on August 16, 2002 and June 28, 2001 shall
remain exercisable for ten years from the applicable Option’s date of grant (as provided under
Section 2(b) of the option agreements governing such Options), but subject to earlier termination
pursuant to Section 12 of the PRA Holdings, Inc. Stock Option Plan (e.g., in connection with a
change in control). For the avoidance of doubt, the intent of the parties is that the Options
discussed in this Section 3(b) shall be exercisable for ten years following the applicable date
of grant, subject to earlier termination in connection with an event such as a change in control.

     4. No Other Payments. Once the Company has paid to Executive all of the payments and
benefits described in this Agreement, Executive acknowledges and agrees that he shall have received
all salary, wages, bonuses, accrued vacation, commissions and any and all other benefits to which
he is entitled pursuant to this Agreement or otherwise. Except for the payments provided for in
this Agreement, Executive acknowledges and agrees that he no longer has any right to receive any
other payments or benefits from the Company pursuant to the Employment Agreement or otherwise.
Except as described in this Agreement, the Company shall have no other obligations to Executive
under the Employment Agreement or otherwise, including but not limited to any payments provided for
in Section 7 of the Employment Agreement. The Parties acknowledge that because funds in
Executive’s 401(k) account are owned by Executive, the provisions of this paragraph do not apply to
said 401(k) account.

     5. Taxes. The Company shall be entitled to withhold from any amounts payable under
this Agreement any federal, state, local or foreign withholding or other taxes or charges which the
Company is required to withhold, and the Company shall pay the required taxes to the applicable
taxing authorities. The Company shall be entitled to rely on an opinion of counsel if any
questions as to the amount or requirement of withholding shall arise. To the extent any taxes may
be due on the payments to Executive provided in this Agreement beyond any withheld by the Company,
Executive agrees to pay the taxes himself. Executive further agrees to provide any and all
information pertaining to Executive upon request as reasonably necessary for the Company and other
entities released herein to comply with applicable tax laws.

     6. Press Release. The press release issued in connection with Executive’s departure
and replacement will be in substantially the form attached hereto as Exhibit B.

     7. Death or Disability. The obligations of the Company to the Executive set forth in
this Agreement shall continue in the event of Executive’s death or disability; in the event of
Executive’s death, the estate of the Executive shall become the obligee.

     8. Indemnification. The Company will fulfill and honor in all respects the
obligations of the Company to the Executive pursuant to Article XI of the Company’s Bylaws as in
effect on the date of this Agreement, and such provisions will not be amended, repealed or
otherwise modified for a period of six years from the date of this Agreement in any manner that
would adversely affect the rights thereunder of the Executive, unless such modification is
required by law. The Company shall not take any action to reduce the coverage available to the
Executive under the Company’s directors’ and officers’ liability insurance policy in effect as of
the date of this Agreement.

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     9. Non-Disparagement. The officers and directors of the Company with whom Executive
worked in any twenty-four (24) months prior to the Termination Date, and who are still employed or
engaged by the Company, agree not to disparage the character of Executive. Notwithstanding the
foregoing, nothing in this Agreement shall preclude the officers and directors of the Company from
making truthful statements that are required by applicable law, regulation or legal process.

     10. Release of Claims. Executive agrees to execute the Release. Executive hereby
agrees and acknowledges that his rights to the benefits provided under this Agreement, including
pursuant to Section 2, are subject to the Executive’s timely execution of such Release.

     11. Executive Covenants. Executive agrees that the provisions of Sections 9, 10, 11
and 12 of the Employment Agreement (the “Executive Covenants”) shall survive beyond the Termination
Date as Post Termination Obligations referenced in Section 13 herein.

     12. Severability. In the event that any provision hereof becomes or is declared by a
court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue
in full force and effect without said provision so long as the remaining provisions remain
intelligible and continue to reflect the original intent of the Parties, except that, if a court
holds or declares (in connection with an action or proceeding directly or indirectly involving the
Executive or parties related to or affiliated with the Executive) that the Release is not fully
enforceable and that Executive has the right to assert any claims that are released in that
Release, then the Company’s obligation to make payments or provide benefits under this Agreement
shall terminate, and to the extent permitted by law, as a condition of asserting any such claim
against the Company, Executive will reimburse the Company for the entire cost of all payments and
benefits Executive has received pursuant to Section 2 of this Agreement.

     13. Entire Agreement. This Agreement, the General Release of Claims and the Option
Agreements represent the entire agreement and understanding between the Company and Executive
concerning the subject matter of this Agreement, and supersede and replace any and all prior
agreements and understandings between the Parties concerning the subject matter of this Agreement,
including the Employment Agreement, with the exception of certain of Executive’s post-termination
obligations under the Employment Agreement and the Option Agreement which are (a) specifically
referenced herein, and (b) deemed to be part of this Agreement (the “Post Termination
Obligations”).

     14. No Waiver. The failure of any party to insist upon the performance of any of the
terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms
and conditions of this Agreement, shall not be construed thereafter as a waiver of any such terms
or conditions. This entire Agreement shall remain in full force and effect as if no such
forbearance or failure of performance had occurred.

     15. No Oral Modification. Any modification or amendment of this Agreement, or
additional obligation assumed by either party in connection with this Agreement, shall be effective
only if placed in writing and signed by both Parties or by authorized representatives of each
party.

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     16. Governing Law. This Agreement shall be construed, interpreted, governed, and
enforced in accordance with the laws of Delaware, without regard to conflict of law principles.
The Parties hereby consent to personal and exclusive jurisdiction and venue in the state and
federal courts of Delaware.

     17. Counterparts. This Agreement may be executed in counterparts, and each
counterpart shall have the same force and effect as an original and shall constitute an effective,
binding agreement on the part of each of the undersigned.

     18. Prevailing Parties. In the event that either the Company or Executive is
successful in whole or in part in any legal or equitable action against the other party under this
Agreement (either as determined by a court of competent jurisdiction pursuant to a final,
non-appealable order or as agreed to by the parties pursuant to a duly executed settlement
agreement), the prevailing party in any such dispute shall be entitled to receive a reimbursement
of his or its reasonable attorneys’ fees and related costs associated with resolving such dispute.

     19. Voluntary Execution of Agreement. This Agreement is executed voluntarily and
without any duress or undue influence on the part or behalf of the Parties hereto, with the full
intent of releasing all claims and this Agreement is executed by Executive without reliance upon
any statement or representation, written or oral, by the Company, its employees or any party
released herein, except as set forth herein. The Parties acknowledge that:

          (a) they have read this Agreement;

          (b) they have been represented in the preparation, negotiation, and execution of this
Agreement by legal counsel of their own choice or that they have voluntarily declined to seek
such counsel;

          (c) they understand the terms and consequences of this Agreement and of the releases it
contains;

          (d) no promise or inducement for this Agreement has been made except as set forth in this
Agreement; and

          (e) they are fully aware of the legal and binding effect of this Agreement

     20. Section 409A. To the extent that the Company reasonably determines that any
compensation or benefits payable under this Agreement are subject to Section 409A of the Code, this
Agreement shall incorporate the terms and conditions required by Section 409A of the Code and
Department of Treasury regulations as reasonably determined by the Company and Executive. To the
extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code
and Department of Treasury regulations and other interpretative
guidance issued thereunder, including without limitation any such regulations or other such
guidance that may be issued after the Effective Date. Notwithstanding any provision of this
Agreement to the contrary, in the event that following the Termination Date the Company reasonably
determines that any compensation or benefits payable under this Agreement may be subject to Section
409A of the Code and related Department of Treasury guidance (including

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such Department of Treasury
guidance as may be issued after the Termination Date), the Company and Executive shall work
together to adopt such amendments to this Agreement or adopt other policies or procedures
(including amendments, policies and procedures with retroactive effect), or take any other
commercially reasonable actions necessary or appropriate to (a) exempt the compensation and
benefits payable under this Agreement from Section 409A of the Code and/or preserve the intended
tax treatment of the compensation and benefits provided with respect to this Agreement, or (b)
comply with the requirements of Section 409A of the Code and related Department of Treasury
guidance.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth
below.

	 	 	 	 	 	 	 
	 	 	PHARMACEUTICAL RESEARCH	 	 
	 	 	ASSOCIATES, INC. a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	Dated: December 14, 2006

	 	By:
	 	/s/ David W. Dockhorn	 	 
	 

	 	Name:
	 	 

David W. Dockhorn
	 	 
	 

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Patrick K. Donnelly, an individual	 	 
	 
	 	 	 	 	 	 
	Dated: December 14, 2006	 	/s/ Patrick K. Donnelly	 	 
	 	 	 	 	 

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EXHIBIT A

GENERAL RELEASE OF CLAIMS

     A general release is required as a condition for receiving the benefits described in the
Separation Agreement (the “Agreement”) to which this Exhibit is attached. Thus, by executing this
“General Release of Claims” (the “General Release”), you have advised us that you intend to assert
no claims against Pharmaceutical Research Associates (the “Company”), its predecessors, successors
or assigns, parent, affiliated companies, or shareholders and their respective officers, directors,
agents and employees, and by execution of this General Release you agree to waive and release any
such claims, except relating to any compensation and benefits described in the Agreement.

     You understand and agree that this General Release will extend to all claims, demands,
liabilities and causes of action of every kind, nature and description whatsoever, whether known,
unknown or suspected to exist, which you ever had or may now have against the Company, any parent
and/or any related entities, their successors or assigns, and their respective officers, directors,
agents and employees, including, without limitation, any claims, demands, liabilities and causes of
action arising from your employment with the Company and the termination of that employment,
including any claims for severance or vacation pay, business expenses, and/or pursuant to any
federal, state, county, or local employment laws, regulations, executive orders, or other
requirements, including, but not limited to, Title VII of the 1964 Civil Rights Act, the 1866 Civil
Rights Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Workers
Adjustment and Retraining Notification Act, the Delaware Discrimination in Employment Act, the
Virginia Constitution, the Virginia Human Rights Act, the Virginians with Disabilities Act and any
other local, state or federal fair employment laws, and any contract or tort claims.

     It is further understood and agreed that you are waiving any right to initiate an action in
state or federal court by you or on your behalf alleging discrimination on the basis of race, sex,
religion, national origin, age, disability, marital status, or any other protected status or
involving any contract or tort claims based on your termination from the Company. It is also
acknowledged that your termination is not in any way related to any work-related injury.

     It is further understood and agreed that you covenant not to sue to challenge the
enforceability of this General Release. It also is understood and agreed that the remedy at law for
breach of the Agreement and/or General Release shall be inadequate, and the Company shall be
entitled to injunctive relief.

     This General Release will be effective on the date you sign it. As this General Release
affects your legal rights, we also advise you to consult with legal counsel prior to signing a copy
of this General Release.

     Finally, this is to expressly acknowledge:

	 	•	 	You understand that you are not waiving any claims or rights that may arise
after the date you execute this General Release or that arise from breaches of
the Agreement.

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	 	•	 	You understand and agree that the compensation and benefits described in the
Agreement offer you consideration greater than that to which you would
otherwise be entitled.

     I hereby state that I have carefully read this General Release and that I am signing this
General Release knowingly and voluntarily with the full intent of releasing Pharmaceutical Research
Associates and the related individuals and entities referenced herein from any and all claims,
except as set forth herein.

	 	 	 	 	 
	December 14, 2006

	 	/s/ Patrick K. Donnelly	 	 
	 

Date

	 	 

Patrick K. Donnelly
	 	 

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EXHIBIT B

FORM OF PRESS RELEASE

 

 

COMPANY CONTACTS:

	 	 	 
	Investors/Analysts:
	 	 
	Matt Bond

	 	Kathy Waller
	Executive Vice President & CFO

	 	Financial Relations Board
	(703) 464-6300

	 	(312) 640-6696

THURSDAY, DECEMBER 14, 2006

PRA INTERNATIONAL ANNOUNCES MANAGEMENT AND BOARD CHANGES

ALSO UPDATES 2006 EARNINGS GUIDANCE

	§	 	Donnelly steps down as Director, President and CEO of PRA
	 
	§	 	Melvin Booth replaces Jean-Pierre Conte as Board Chairman
	 
	§	 	Terrance Bieker named Director and Interim CEO

RESTON, Va., December 14, 2006 — PRA International (NASDAQ: PRAI), a leading clinical research
organization, today announced the resignation of Patrick K. Donnelly as Director, President and
Chief Executive Officer, effective December 14, 2006. He will be leaving the organization
December 31, 2006 and will remain an outside consultant to PRA’s Board for 18 months.

The Company also announced the appointment of Melvin D. Booth as Chairman of the Board of
Directors. Mr. Booth will assume the role of Chairman from Jean-Pierre Conte, who will continue
to serve as a Director.

Terrance J. Bieker has been appointed to the Board of Directors and named Interim CEO until a
permanent replacement can be found.

“After 13 rewarding years with PRA I have made the decision to leave the Company to embrace new
challenges and opportunities,” said Mr. Donnelly. “I am grateful for the time I’ve spent at PRA
and believe I am leaving the Company in great hands with a tremendous management team in place.
It is now time for PRA to be led by a CEO with a more scientific and therapeutic focus.”

“On behalf of the entire Board, I’d like to express our sincere gratitude to Pat for his dedicated
service to PRA International,” said incoming Chairman, Mel Booth. “Pat has guided the company
through a period of unparalleled growth. His numerous accomplishments include navigating three
leveraged financings; spearheading a successful corporate reorganization and IPO; skillfully
acquiring and integrating 10 strategic acquisitions; and developing global service offerings that
have added substantially to stockholder value. We wish him well in his future endeavors. In the
meantime, we expect a seamless transition and look forward to achieving our

 

 

strategic goals. The Company has already engaged a global executive recruitment firm to assist in
identifying a permanent CEO.”

Mr. Booth added, “Terry Bieker brings a wealth of global strategic and operating experience to the
Board and is well positioned to serve as Interim CEO. His experience includes executive positions
in the fields of drug discovery, clinical diagnostics and medical devices. We believe Terry is an
excellent choice to oversee this transition in executive leadership.”

Most recently, Mr. Bieker served as Director, President and Chief Executive Officer of BioSource
International, Inc. from November 2003 to November 2005. From 1999 to 2003, he served as Director
and Chief Executive Officer of several medical device corporations, including Axia Medical and
Transfusion Technologies Corporation and as Chief Operating Officer for SafeSkin, Inc. Prior to
that, Mr. Bieker was Chairman, President and Chief Executive Officer of Sanofi Diagnostics
Pasteur, Inc. from 1989 to 1997 and held various executive positions with Genetic Systems
Corporation and American Hospital Supply Corporation from 1978 to 1983. Mr. Bieker graduated from
the University of Minnesota in 1963.

Mr. Bieker noted, “PRA has assimilated a strong management team and has in place a solid
foundation upon which to implement its five key growth strategies. I believe the Company is well
positioned to continue to be one of the best Clinical Research Organizations in the world and to
continue to provide truly outstanding service to all of our clients.”

Mr. Conte, who will continue to serve as a Director, is stepping aside as Chairman to allow Mr.
Booth to assume that role. “With more than 29 years of senior management experience in healthcare
and the life sciences, Mel has distinguished himself as a global leader in the healthcare
industry. He has been instrumental in the growth and success of a number of top life sciences
companies,” said Mr. Conte. “We believe Mel’s expertise in strategic planning, business
development and international operations will be a tremendous asset to PRA.”

Mr. Booth has been a Director of PRA International since November 2004 and was a Director of
MedImmune, Inc. from November 1998 until March 2005, serving as its President and Chief Operating
Officer from October 1998 through December 2003. Prior to joining MedImmune, Mr. Booth was
President, Chief Operating Officer, and a member of the Board of Directors of Human Genome
Sciences, Inc. from July 1995 to October 1998. Mr. Booth held many executive positions from 1975
to July 1995 at Syntex, including President of Syntex’ U.S. pharmaceutical business. He is
currently also a board member of Millipore Corporation, Prestwick Pharmaceuticals, Inc. and
Ventria Bioscience. Mr. Booth graduated with honors and holds an honorary Doctor of Science
degree from Northwest Missouri State University. Mr. Booth also currently serves as Chairman of
the Audit Committee of the Board of Directors of PRA International.

2006 Earnings Guidance

Today, PRA also narrowed its 2006 service revenue guidance to $300-305 million, the lower end of
its current range. The Company is also revising its fully diluted earnings per share to
$1.08-$1.11, which includes one-time charges of approximately $0.05 per share associated with

 

 

Mr. Donnelly’s resignation and $0.02 per share for a write-off of amounts owed to PRA relating to
the financial failure of certain biotech customers.

     PRA will hold a conference call Friday, December 15, 2006 at 1:00 p.m. ET to discuss the management
changes and 2006 earnings guidance. The call will be available via live webcast at
www.prainternational.com. Please go to the website at least 15 minutes early to register, download
and install any necessary audio software. The call may also be accessed by dialing                     . A
replay of the call will remain available at the site for 30 days.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements that are subject to risks and uncertainties
relating to PRA International’s future financial and business performance, as well as any other
predictive statements that depend on future events or conditions, or that include words such as
“expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “will,” “estimate” or similar
expressions of futurity. You should not place undue reliance on any forward-looking statements,
which represent the company’s statements only as of the date of this news release and are not
intended to give any assurance as to actual future events. Factors that might cause future events
to differ include: operational and personnel challenges that could result from management
changes; the results of the executive search process; the ability to execute our strategy during
management transitions; the ongoing need for early and late phase drug development services;
project cancellations and timing issues; our ability to attract and retain qualified personnel;
our ability to continue providing our services effectively, including the quality or accuracy of
the data or reports provided and our ability to meet agreed-upon schedules; the ability and
willingness of our clients to continue to spend on research and development at rates comparable to
or greater than historical levels; trends or events affecting the CRO industry and the demand for
CRO services; government regulation, including regulatory standards applicable to CRO services;
evolving industry standards and technological changes; and general business and economic
conditions. Events relating to PRA International could differ materially from those anticipated in
these forward-looking statements. Although these statements are based upon assumptions company
management believes to be reasonable based upon available information, they are subject to the
foregoing risks and uncertainties as well as those described more fully in the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections
of our annual report on Form 10-K. This document can be accessed in the SEC’s EDGAR database
found at http://www.sec.gov. Please note that PRA International assumes no obligation to
update any of the forward-looking statements in this release, except as required by applicable
securities laws.

About PRA International

PRA International is one of the world’s leading global clinical development organizations, with
over 2,700 employees working from offices in North America, Europe, South America, Africa,
Australia, and Asia. PRA, an ISO 9001:2000 registered company, delivers services to its clients
through a unique approach called Project Assurance®, which represents the company’s

 

 

commitment to reliable service delivery, program-level therapeutic expertise, easy, global access
to knowledge, and involved senior management.

To learn more about PRA International, please visit www.prainternational.com or call our World
Headquarters at +1 (703) 464-6300.exv10w2

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

BETWEEN

TERRANCE J. BIEKER

AND

PHARMACEUTICAL RESEARCH ASSOCIATES, INC.

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made as of the 14th day of December, 2006 (the
“Effective Date”), by and between Pharmaceutical Research Associates, Inc., a Virginia corporation
(“Employer”), having its principal office in the Commonwealth of Virginia, which is a wholly-owned
subsidiary of PRA International, a Delaware corporation (“PRA International”), and Terrance J.
Bieker (“Employee”).

     WHEREAS, Employer and Employee desire to enter into an agreement for the employment by
Employer of Employee as Chief Executive Officer commencing on the Effective Date, serving on an
interim basis until his successor is appointed by Employer.

     WHEREAS, by entering into this Agreement, the terms of the Employee’s employment with the
Employer will be governed by the terms and conditions of this Agreement and any other prior
agreement between the Employee and the Employer relating to the Employee’s employment with the
Employer or any of its affiliated entities is superseded by the terms of the Agreement.

     NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions set forth
below, which consideration is acknowledged by both parties to be good and sufficient, the parties
hereto agree as follows:

     1. Position. Employer hereby agrees to employ Employee as of the Effective Date (as
defined herein) and Employee hereby accepts employment as of the Effective Date in the position of
Chief Executive Officer with appropriate title, rank, status and responsibilities as determined
from time to time by the Board of Directors of PRA International (“Board”) upon the terms and
conditions hereinafter set forth. Employee shall serve as a Class I member of the Board through the
expiration of the Class I term in 2008, but shall only receive compensation as a member of the
Board after the Employment Term.

     2. Employment Period.

          (a) The period of employment under this Agreement shall begin on the Effective Date and shall
end on the one-year anniversary of the Effective Date, or on the date his successor is appointed by
Employer and this Agreement is terminated, or unless this Agreement is otherwise terminated sooner,
pursuant to Section 7 of this Agreement. This Agreement shall not automatically renew upon the
expiration of its term, and continued employment thereafter by the Employee with Employer shall be
terminable by either party with or without cause and with or without notice unless the parties
enter into a separate written agreement for employment; provided, however, that Employee’s
obligations under Sections 9, 10, 11 and 12 of this Agreement shall survive the expiration of this
Agreement in any and all events (but Employer’s obligations under Section 7 shall not survive the
expiration of this Agreement).

          (b) The period during which Employee is employed under the terms of this Agreement is the
“Employment Period.”

 

 

     3. Duties. The Board shall have the power to determine the specific duties that shall
be performed by Employee and the means and manner by which those duties shall be performed, but
such duties shall be consistent with the executive position of Employee.

          (a) During the Employment Period, Employee agrees to use his best efforts in the business of
Employer and to devote his full time, skill, attention and energies to the business of Employer.
Employee shall not be engaged in any other business activity which shall be competitive with the
business of Employer or which may (i) interfere with Employee’s ability to discharge his
responsibilities to Employer; or (ii) detract from the business of Employer. Employee shall not:

          (i) work either on a part-time or independent contracting basis for any other company,
business or enterprise (excluding ViTA Business Ventures, Inc, for which Employee provides services
as of the Effective Date) without the prior written consent of the Board; or

          (ii) serve on the board of directors or comparable governing body of any other material
business, civic or community corporation or similar entity without the prior written consent of the
Board (excluding those positions Employee holds and boards of directors on which Employee serves as
of the date of this Agreement, which positions and boards, if any, are listed on Exhibit A
hereto), which consent shall not be unreasonably withheld.

          (b) Employee agrees to use his reasonable efforts to impart his skill and knowledge relating
to the business of Employer to such individuals as are designated by Employer, and to train such
individuals in the aspects of the business with which Employee is familiar.

     4. Compensation . For all services rendered by Employee under this Agreement, for,
and in consideration of, Employee’s agreements and undertaking contained in this Agreement
(including, without limitation, those contained in Sections 9 and 10 below), and, subject to
Sections 7 and 8 below, during the Employment Period, Employer shall provide Employee with the
following:

          (a) Base Salary. Employer shall pay to Employee, in equal bi-monthly installments, a
base salary of USD$425,000 per year, less applicable withholdings and deductions.

          (b) Bonus. Employee shall be eligible to receive a bonus approved by the Compensation
Committee of the Board, with an annual bonus target of USD$250,000 based on a bonus year that is
the twelve-month period following the Effective Date (which amount shall be pro rated if Employee
is employed for less than a full year based on the actual number of days Employee is employed by
the Company during the applicable bonus year) less applicable withholdings and deductions.
Employee’s eligibility for bonus payments under the Bonus Plan shall be at the discretion of, and
shall be governed by such terms, if any, approved by, the Compensation Committee of the Board.

          (c) Review. It is understood and agreed that the Compensation Committee of the Board
will review compensation matters of Employer on a regular basis, and will (on at least an annual
basis) set all annual bonus targets, salaries and benefits in which Employee shall be eligible to
participate.

     5. Benefits. Employee shall be eligible to participate in Employer’s standard
benefits programs, which presently include health, life and disability insurance, and those
additional benefits (the “Additional Benefits”) currently offered to Employer’s executive staff. It
is agreed that the nature and amount of the Additional Benefits, if any, shall be determined from
time to time by the Compensation Committee of the Board, in its discretion, provided that no
Additional Benefits (as defined above) will be materially reduced. Employee shall be entitled to
paid vacation in accordance with the Employer’s vacation policies in effect for executive staff
during the Employment Period (currently 20 days of paid time off (“PTO”)).

2

 

Employee shall be covered by the holiday policy of the Employer and, by any other pension or
retirement plan, disability benefit plan or any other benefit plan or arrangement of Employer
determined by the Board to be applicable to Employee.

     6. Expense Reimbursement . Subject to such conditions as Employer may from time to
time determine and pursuant to Employer’s expense reimbursement policy then in place, Employer
shall reimburse Employee for reasonable expenses incurred by Employee in connection with the
business of Employer and the performance of Employee’s duties hereunder. Employee shall be entitled
to travel business class on all business related transoceanic airplane flights where the specific
segment of the flight is over 5 hours in length.

     7. Termination . This Agreement may be terminated under the following circumstances,
having the consequences described in Sections 7 and 8:

          (a) Death of Employee . This Agreement shall terminate immediately upon the death of
Employee. Should this Agreement be terminated pursuant to this Section 7(a), Employee shall be
entitled to Termination Payments as provided for in Section 7(e).

          (b) Termination by Employer for Disability of Employee . If during the Employment
Period, Employee shall be prevented from performing his duties for a continuous period of one
hundred and eighty (180) days by reason of disability that renders Employee physically or mentally
incapable of performing substantially all of his duties under this Agreement (excluding infrequent
and temporary absences due to illness), Employer may terminate Employee’s employment hereunder. If
after a period of disability commences (but prior to termination of Employee’s employment),
Employee returns to work for a period of at least twenty (20) consecutive work days, the period of
disability shall terminate and not be counted towards any period of subsequent disability. For
purposes of this Agreement, Employer, upon the advice of a qualified and impartial physician, at
Employer’s expense, shall determine whether Employee has become physically or mentally incapable of
performing substantially all of his duties under this Agreement. Employer shall give Employee (or
his guardian, as applicable) thirty (30) days’ written notice of termination of the Employment
Period under this Section 7(b). Should the Employee be terminated pursuant to this Section 7(b),
Employee shall be entitled to Termination Payments as provided for in Section 7(e).

          (c) Termination by Employer. This Agreement may be terminated by Employer for any
reason other than death or disability upon thirty (30) days’ written notice given to Employee.
Should the Employee be terminated pursuant to this Section 7(c), Employee shall be entitled to
Termination Payments as provided for in Section 7(e).

          (d) Termination by the Employee. This Agreement may be terminated by Employee upon
thirty (30) days’ written notice given to Employer. In the event of termination by Employee
pursuant to this Section 7(d), Employer may immediately relieve Employee of all duties and
immediately terminate this Agreement. Should Employee be terminated pursuant to this Section 7(d),
Employee shall be entitled to Termination Payments as provided for in Section 7(e).

          (e) Termination Payments. If Employee’s employment is terminated pursuant to Section
7, Employer shall provide Employee (or, in the case of his death, his estate, heirs or legal
representatives) (i) any and all accrued but unpaid base salary compensation (and accrued PTO, as
applicable) due to Employee as of the date on which the Employment Period ends, (ii) the pro rata
portion of any unpaid bonus awarded to Employee prior to termination pursuant to Section 4(b), and
(iii) in the event of a notice by Employer under Section 7(c) of an immediate termination of
Employee’s termination, thirty (30) days base salary following the date Employer notifies Employee
of its intent to immediately relieve Employee

3

 

of his duties, in each case less applicable withholdings and deductions (collectively, the
“Termination Payments”) (the “Termination Date”), which shall be paid on the Termination Date.
Employee shall be entitled to continuation of his medical insurance benefits under COBRA at
Employee’s shared expense (such expense not to exceed the amount the employee paid while employed
by Employer) for a period of eighteen (18) months under one of the Company’s group medical plans.

     8. Survival of Sections of this Agreement. Without regard to the reason for
termination of this Agreement or the employment of Employee, and notwithstanding anything contained
in this Agreement to the contrary, it is expressly understood and agreed that Employee’s
obligations under Sections 9, 10, 11 and 12 of this Agreement shall survive termination of this
Agreement in any and all events.

     9. Confidential Information and Certain Property Matters.

          (a) Employee recognizes that information, knowledge, contacts and experience relating to the
businesses, operations, properties, assets, liabilities and financial condition of Employer and the
markets and industries in which it operates, including, without limitation, information relating to
business plans and ideas, trade secrets, intellectual property, know-how, formulas, processes,
research and development, methods, policies, materials, results of operations, financial and
statistical data, personnel data and customers in and related to the markets and industries in
which Employer operates (“Confidential Information”), is considered by Employer to be valuable,
secret, confidential and proprietary. Employee hereby acknowledges and agrees that the Confidential
Information is valuable, secret, confidential and proprietary to Employer, and further agrees that
he shall not, at any time (whether during or after the Employment Period), make public, disclose,
divulge, furnish, release, transfer, sell or otherwise make available to any person any of the
Confidential Information, or otherwise use or disclose any of the same or allow any of the same to
be used or disclosed for any purpose, other than as may be permitted to Employee under this
Agreement. Notwithstanding the foregoing, Employee may, without violating this Section 9(a),
disclose Confidential Information if (i) such disclosure is required to comply with a valid court
order or any administrative law order or decree; (ii) Employee gives Employer advance written
notice of the required disclosure so that Employer may, if it wishes, seek an appropriate
protective order; and (iii) Employee, in any event, requests that any disclosed information be
afforded confidential treatment, to the greatest extent possible.

          (b) Employee shall fully disclose to Employer all Inventions made or conceived by him during
the Employment Period that would be deemed applicable, useful or otherwise beneficial to or in
respect of the current business of Employer, in whole or in part. “Inventions” include, but are not
limited to, customer list compilations, machinery, apparatus, products, processes, results of
research and development (including without limitation results that constitute trade secrets, ideas
and writings), computer hardware, information systems, software (including without limitation
source code, object code, documentation, diagrams and flow charts) and any other discoveries,
concepts and ideas, whether patentable or not (including without limitation processes, methods,
formulas, and techniques, as well as improvements thereof or know-how related thereto, concerning
any present or prospective business activities of Employer). Any and all Inventions shall be the
absolute property of Employer or its designees, and Employee acknowledges that he shall have no
interest whatsoever in such Inventions. At the request of Employer and without additional
compensation, Employee (i) shall make application in due form for United States letters patent and
foreign letters patent on such Inventions, and shall assign to Employer all his right, title and
interest in such Inventions; (ii) shall execute any and all instruments and do any and all acts
necessary or desirable in connection with any such application for letters patent or in order to
establish and perfect in Employer the entire right, title and interest in such Inventions, patent
applications or patents; and (iii) shall execute any instruments necessary or desirable in
connection with any continuations, renewals or reissues thereof or in the conduct of any related
proceedings or litigation. Except as authorized by Employer in writing, Employee shall not
disclose, directly or indirectly, to any

4

 

person other than Employer, any information relating to any Invention or any patent application
relating thereto.

          (c) Employee hereby acknowledges and agrees that the work performed by Employee pursuant to
his employment by Employer will be specifically ordered or commissioned by Employer, and that such
work shall be considered a “work for hire” as defined in the Copyright Revision Act of 1976 (the
“Act”), granting Employer full ownership to the work and all rights comprised therein. In addition,
Employee hereby waives in favor of Employer any and all moral rights in the work contemplated by
this Section 9(c) that Employer now has or in the future may have. Should any work not fall within
the definition of a “work for hire” as set forth in such Act, Employee hereby transfers and assigns
to Employer full ownership of the copyright to the work and all rights comprised therein. Employee
shall sign all applications for registration of such copyright as are requested by Employer, and
shall sign all other writings and instruments and perform all other acts necessary or desirable to
carry out the terms of this Agreement.

     10. Non-Competition and Non-Solicitation.

          (a) Employee agrees that during the Employment Period (the “Noncompetition Period”), Employee
will not, within the country where Employee’s office with Employer is located, whether as owner,
manager, officer, director, employee, consultant or otherwise, be engaged or employed by a
Competing CRO to provide Customer Services that are the same or substantially related to the
Customer Services that Employee performs for Employer.

Employer acknowledges and agrees that ownership by Employee of not more than one percent (1.0%) of
the shares of any corporation having a class of equity securities actively traded on a national
securities exchange or on the Nasdaq Stock Market shall not be deemed, in and of itself, to violate
the prohibitions set forth in this section.

For the purposes of this Agreement, the term “Customer Services” means any product or service
provided by Employer to a third party for remuneration, including, but not limited to, on a
contract or outsourced basis, assisting pharmaceutical or biotechnology companies in developing and
taking drug compounds, biologics, and drug delivery devices through appropriate regulatory approval
processes during the Employment Period. “Customer” means any person or legal entity (and its
subsidiaries, agents, employees and representatives) about whom Employee has acquired material
information based on employment with Employer and as to whom Employee has been informed that
Employer provides or will provide Customer Services. “Competing CRO” means any of the following
entities and their affiliates and successors to the extent that and for so long as those said
entities, affiliates, and successors directly compete with Employer in the provision of Customer
Services to Customers: Charles River Laboratories International, Inc., Covance Inc., ICON plc, INC
Research, Inc., Kendle International Inc., MDS Pharma Services, PAREXEL International Corporation,
Pharmaceutical Product Development, Inc., PharmaNet, Quintiles Transnational Corp., United
BioSource Corporation, and United HealthCare Corporation.

          (b) Employee agrees that he shall not, during the Employment Period, directly or indirectly,
whether as owner, manager, officer, director, employee, consultant or otherwise, solicit the
business of, or accept business from any Customer of Employer during the Employment Period, unless
the business being solicited or accepted is not in competition with or substantially similar to
Employer’s Customer Services or otherwise on behalf of Employer.

          (c) Employee agrees that he shall not, during the Employment Period, directly or indirectly,
solicit or induce (or attempt to solicit or induce) to leave the employ of Employer or any of its
affiliates for any

5

 

reason whatsoever any person employed by Employer or any of its affiliates at the time of the act
of solicitation or inducement.

          (d) During and after the Employment Period, Employee agrees not to disparage Employer or any
of its affiliates. During and after the Employment Period, the officers with whom Employer works
agree not to disparage the character of Employee.

          (e) Employee hereby specifically acknowledges and agrees that the provisions of this Section
10 are reasonable and necessary to protect the legitimate interests of Employer, and that Employee
desires to agree to the provisions of this Section 10. In the event that any of the provisions of
this Section 10 should ever be held to exceed the time, scope or geographic limitations permitted
by applicable law, it is hereby declared to be the intention of the parties hereto that such
provision be reformed to reflect the maximum time, scope and geographic limitations that are
permitted by such law.

          (f) Employee hereby acknowledges and agrees that, owing to the special, unique and
extraordinary nature of the matters covered by this Section 10, in the event of any breach or
threatened breach by Employee of any of the provisions hereof, Employer would suffer substantial
and irreparable injury, which could not be fully compensated by monetary award alone, and Employer
would not have adequate remedy at law. Therefore, Employee agrees that, in such event, Employer
shall be entitled to temporary and/or permanent injunctive relief against Employee, without the
necessity of proving actual damages or of posting bond to enforce any of the provisions of this
Section 10, and Employee hereby waives the defenses, claims, or arguments that the matters are not
special, unique, and extraordinary, that Employer must prove actual damages, and that Employer has
an adequate remedy at law. In addition, Employee shall pay to Employer and Employer shall be
awarded the reasonable attorneys’ fees and costs incurred by Employer as a result of Employee’s
breach of Employee’s obligations contained in this Section 10.

          (g) Employee further agrees that the rights and remedies described in this Section 10 are
cumulative and shall be in addition to and not in lieu of any other rights and remedies otherwise
available under this Agreement, or at law or in equity, including but not limited to monetary
damages.

          (h) Notwithstanding any other provision of this Agreement, Employee further agrees that in the
event of any breach by Employee of any of the provisions of this Section 10, all obligations and
liabilities of Employer under this Agreement (including, but not limited to, Sections 6 and 7
hereof) shall immediately terminate and be extinguished.

     11. Records. Upon termination of this Agreement for any reason, Employee shall
promptly deliver to Employer all property of Employer then in Employee’s possession or under his
control, including but not limited to: (i) any and all correspondence, mailing lists, drawings,
blueprints, manuals, letters, records, notes, notebooks, reports, flow-charts, programs, proposals,
computer tapes, discs and diskettes; (ii) any and all documents concerning or relating to
Employer’s business, clients, customers, investors or lenders, or concerning products, processes or
technologies used by Employer; (iii) any and all documents or materials containing or constituting
Confidential Information; and (iv) any laptops or computer equipment issued by Employer.

     12. Arbitration. Except with respect to any attempt to obtain preliminary injunctive
relief to enforce the restrictive provisions of Section 10 this Agreement (in which case any such
matter may be brought initially in a court of competent jurisdiction for purposes of resolving any
request for preliminary injunctive relief), all disputes between Employer and Employee hereunder,
or otherwise arising out of the employment or termination of employment of Employee, including but
not limited to disputes arising under any state or federal employment discrimination law, shall be
settled by arbitration pursuant to the then in effect rules for the resolution of employment
disputes of the American Arbitration Association, in

6

 

Washington, D.C. Arbitration hereunder shall be by a single arbitrator appointed by mutual
agreement of the parties. The single arbitrator shall have the authority to summarily dismiss any
claim or claims brought in arbitration prior to a hearing on the merits. The award rendered by the
arbitrator shall be conclusive and binding upon the parties hereto. Each party shall pay its own
expenses of arbitration and the expenses of the arbitrator shall be equally shared.

     13. Full Settlement; Mitigation. In no event shall Employee be obligated to seek other
employment or take any other action by way of mitigation of the amounts (including amounts for
damages for breach) payable to Employee under any of the provisions of this Agreement, and such
amounts shall not be reduced whether Employee obtains other employment.

     14. Entire Agreement. This Agreement (together with Exhibit A hereto) supersedes and
terminates any and all prior agreements or contracts, written or oral, entered into between
Employer and Employee with regard to the subject matter hereof. Employee acknowledges and agrees
that Employee is not entitled to any salary, bonus, benefits, severance, deferred compensation or
similar payments from Employer or any of its affiliates except as expressly set forth herein. This
instrument contains the entire agreement between Employer and Employee regarding the employment of
Employee by Employer, and any representation, promise or condition in connection therewith not in
writing shall not be binding upon either party. No amendment, alteration or modification of this
Agreement shall be valid unless in each instance such amendment, alteration or modification is
expressed in a written instrument duly executed in the name of the party or parties making such
amendment, alteration or modification.

     15. Severability. The provisions of this Agreement shall be deemed severable, and if
any part of any provision is held to be illegal, void, voidable, invalid, nonbinding or
unenforceable in its entirety or partially or as to any party, for any reason, such provision may
be changed, consistent with the intent of the parties hereto, to the extent reasonably necessary to
make the provision, as so changed, legal, valid, binding and enforceable. If any provision of this
Agreement is held to be illegal, void, voidable, invalid, nonbinding or unenforceable in its
entirety or partially or as to any party, for any reason, and if such provision cannot be changed
consistent with the intent of the parties hereto to make it fully legal, valid, binding and
enforceable, then such provision shall be stricken from this Agreement, and the remaining
provisions of this Agreement shall not in any way be affected or impaired, but shall remain in full
force and effect.

     16. Governing Law. This Agreement is to be governed by and interpreted under the laws
of the state of Delaware, without regard to the conflicts of laws provisions or rules of such
State’s law.

     17. Headings; Form of Words. The headings contained in this Agreement have been
inserted for the convenience of reference only, and neither such headings nor the placement of any
term hereof under any particular heading shall in any way restrict or modify any of the terms or
provisions hereof. Terms used in the singular shall be read in the plural, and vice versa, and
terms used in the masculine gender shall be read in the feminine or neuter gender when the context
so requires. The term “person” as used herein refers to a natural person, a corporation, a limited
liability company, a partnership, a joint venture, or other entity or association, as the context
requires.

     18. Notices. All notices, requests, consents, payments, demands and other
communications required or contemplated under this Agreement (“Notices”) shall be in writing and
(a) personally delivered; (b) deposited in the United States mail, registered or certified mail,
return receipt requested, with postage prepaid; or (c) sent by Federal Express or other
internationally recognized overnight delivery service (for next business day delivery), shipping
prepaid, as follows:

     If to Employer, to:

7

 

Pharmaceutical Research Associates, Inc.

12120 Sunset Hills Road, Suite 600

Reston, VA 20190

Attn: Chief Financial Officer

     with a copy (which shall not constitute notice) to the Chairman of the Board at that person’s
then current business address

     If to Employee, to :

     At Employee’s then current home address on file with Employer

or such other persons or address as any party may request by notice given as aforesaid. Notices
shall be deemed given and received at the time of personal delivery or, if sent by U.S. mail, five
(5) business days after the date mailed in the manner set forth in this Section 18, or, if sent by
Federal Express or other nationally recognized overnight delivery service, one business day after
such sending.

     19. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     20. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of Employee and Employee’s heirs and legal representatives and Employer and its successors
and assigns. Employee’s rights and obligations under this Agreement are personal to Employee and
shall not be assignable or transferable by Employee (except that Employee’s rights may be
transferred upon his death by will, trust, or the laws of intestacy). Employer shall require any
successor (whether direct or indirect, by purchase, merger, consolidation, share exchange or
otherwise) to all or substantially all of the business and/or assets of Employer to expressly
assume in writing and agree to perform this Agreement in the same manner and to the same extent
that Employer would be required to perform it if no such succession had taken place, except that no
such assumption and agreement will be required if the successor is bound by operation of law to
perform this Agreement. In this Agreement, the term “Employer” shall include any successor to
Employer’s business and assets that assumes and agrees to perform this Agreement (either by
agreement or by operation of law).

     21. Cooperation. Each party to this Agreement agrees to cooperate with the other
party hereto to carry out the purpose and intent of this Agreement, including without limitation
the execution and delivery to the appropriate party of all such further documents as may reasonably
be required in order to carry out the terms of this Agreement.

     22. Waiver. Any waiver of any provision hereof (or in any related document or
instrument) shall not be effective unless made expressly and in a writing executed in the name of
the party sought to be charged. The failure of any party to insist, in any one or more instances,
on performance of any of the terms or conditions of this Agreement shall not be construed as a
waiver or relinquishment of any rights granted hereunder or of the future performance of any such
term, covenant or condition, but the obligations of the parties with respect thereto shall continue
in full force and effect.

     23. Indemnification. Employee shall be entitled to be indemnified by Employer to the
fullest extent permitted by the applicable state law and consistent with Employer’s Articles of
Incorporation. Employer further agrees to indemnify Employee to the extent permitted under
applicable law for all actions taken in good faith within the scope, and in the course, of
Employee’s employment under this Agreement during the Employment Period for the life of any claim.

8

 

[ Signature Page to Follow ]

9

 

     IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above
written.

	 	 	 	 	 	 	 
	Employer:	 	PHARMACEUTICAL RESEARCH ASSOCIATES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert E. Conway
 

	 	 
	 	 	Print Name: Robert E. Conway	 	 
	 	 	Print Title: Chairman, Compensation Committee	 	 
	 
	 	 	 	 	 	 
	Employee:	 	/s/ Terrance J. Bieker	 	 
	 	 	   	 	 
	 	 	Print Name: Terrance J. Bieker	 	 

10

 

EXHIBIT A 

Positions and Boards of Directors on which Employee Serves as of the Date of this Agreement 

11

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