Document:

Ex-10.11

 

EXHIBIT 10.11

Pharma Services Holding, Inc.

c/o One Equity Partners

230 Park Avenue, 18th Floor

New York, New York 10022

October 30, 2003

Oppel Greeff

111 Beaver Dam Run

Durham, NC 27703

Re: Stock Option

Dear Oppel,

As you know, on September 25, 2003, Quintiles Transnational Corp.
(“Quintiles”), became an indirect wholly-owned subsidiary of Pharma Services
Holding, Inc. (the “Company”). We are pleased to inform you that you will be
granted an option (“Option”) to purchase shares of common stock (“Shares”) of
the Company pursuant to the Company’s Stock Incentive Plan (the “Plan”) and on
the terms and conditions set forth below.

	1.	 	Number of Shares subject to Option. 225,000 Shares.
	 
	2.	 	Exercise Price per Share. $14.50
	 
	3.	 	Vesting. The Option will vest and become exercisable as to as to 20% of
the total number of Shares subject to the Option on the 25th day of each
September, beginning September 25, 2004 and ending September 25, 2008,
provided that (i) the Option will become fully vested and exercisable upon
a “Sale of the Company”, as defined in the Plan, and the Committee will
not exercise its discretion to provide otherwise, (ii) the Option will
become fully vested and exercisable upon your termination of employment by
reason of your death or pursuant to Section 4.3(ii) of your Executive
Employment Agreement (physical or mental inability to perform), and (iii)
the unvested portion of the Option will become vested and exercisable upon
your termination of employment under circumstances entitling you to
severance benefits pursuant to Section 5.2 of your Executive Employment
Agreement as to the total number of Shares subject to the Option
multiplied by the “vesting percentage”, as defined below. In no event
will any portion of the Option that is not vested and exercisable at the
time of your termination of employment with the Company and its
subsidiaries for any reason (after taking into account any vesting that
occurs upon termination of employment pursuant to clauses (ii) and (iii)
of the preceding sentence) become vested and exercisable following such
termination. For purposes of the foregoing, “vesting percentage” means
20% multiplied by a fraction, the numerator of which is the number of days
that have elapsed from the 25th day of September that immediately precedes
the date of your termination of employment through the date of such
termination, and the denominator of which is 365,

 

 

	 	 	provided that if the date of your termination of employment falls on the
25th day of any September, the vesting percentage shall be zero.
	 
	4.	 	Termination of Option. The Option will terminate as provided in Section
5(b) of the Plan.
	 
	5.	 	Restrictions on Shares. Any Shares that you acquire upon exercise of the
Option will generally be nontransferable, and subject to such other
restrictions as contained in Section 8 of the Plan. For purposes of
Section 8(c)(ii) of the Plan (Repurchase Right), in making a good faith
determination of “Fair Market Value”, the Committee will take into account
the most recent outside event pursuant to which a value of a Share can be
implied (including, without limitation, an equity issuance, stock option
grant or valuation by an appraisal firm, investment bank or similar
organization), provided that if no such event has occurred within the
preceding 12 months, the Committee shall obtain a new valuation by an
appraisal firm, investment bank or similar organization, and shall take
such valuation into account in determining Fair Market Value. For
purposes of the proviso contained in Section 8(c)(ii) of the Plan, clause
(x) thereof shall not apply, and clause (z) shall apply only if the breach
referred to therein is material.
	 
	6.	 	Taxes. A separate information statement describing the tax considerations
relating to the Option grant will be provided to you.
	 
	7.	 	Subject to Plan. The Option is being granted pursuant to the Plan, a
copy of which is attached, and is subject to the terms of the Plan in all
respects.
	 
	8.	 	Condition. The grant of the Option is conditional upon your execution of
an amendment to your Executive Employment Agreement in the form attached
as Exhibit A no later than November 17, 2003.
	 
	9.	 	Acknowledgement. You acknowledge: (i) that the Plan is discretionary in
nature and may be suspended or terminated by the Company at any time; (ii)
that each grant of an Option is a one-time benefit, which does not create
any contractual or other right to receive future grants of Options, or
benefits in lieu of Options; (iii) that all determinations with respect to
any such future grants, including, but not limited to, the times when
Options shall be granted, the number of shares subject to each Option, the
Option price, and the time or times when each Option shall be exercisable,
will be at the sole discretion of the Committee; (iv) that your
participation in the Plan shall not create a right to further employment
with the Company or its affiliates and shall not interfere with the
Company’s, its affiliates’ or your ability to terminate your employment
relationship at any time with or without cause; (v) that your
participation in the Plan is voluntary; (vi) that the value of the Option
is an extraordinary item of compensation which is outside the scope of
your employment contract, if any; and (vii) that the Option is not part of
normal or expected compensation for purposes of calculating any severance,
resignation, redundancy, end of service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments.
	 
	10.	 	Employee Data Privacy. As a condition of the grant of Option, you
consent to the collection, use and transfer of personal data as described
in this Section 10. You understand that the

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	 	 	Company and its Affiliates hold certain personal information about you
including, but not limited to, your name, home address and telephone number,
date of birth, social security number, salary, nationality, job title,
shares of common stock or directorships held in the Company, details of all
Options or other entitlement to shares of common stock awarded, cancelled,
exercised, vested, unvested or outstanding in your favor, for the purpose of
managing and administering the Plan (“Data”). You further understand that
the Company and/or its Affiliates will transfer Data amongst themselves as
necessary for the purposes of implementation, administration and management
of your participation in the Plan, and that the Company and/or any of its
Affiliates may each further transfer Data to any third parties assisting the
Company in the implementation, administration and management of the Plan.
You understand that these recipients may be located in your country of
residence or elsewhere, such as the United States. You authorize them to
receive, possess, use, retain and transfer Data in electronic or other form,
for the purposes of implementing, administering and managing your
participation in the Plan, including any requisite transfer of such Data as
may be required for the administration of the Plan and/or the subsequent
holding shares of common stock on your behalf to a broker or other third
party with whom the shares acquired on exercise may be deposited. You
understand that he or she may, at any time, view the Data, require any
necessary amendments to it or withdraw the consent herein in writing by
contacting the local human resources representative.

* * * *

	 	 	 
	 	 	
Sincerely yours,
	 	 	 
	 	 	
PHARMA SERVICES HOLDING, INC.

3Ex-10.14

 

EXHIBIT 10.14

AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

          THIS AMENDMENT (this “Amendment”) dated as of November 14, 2003 by and
between QUINTILES TRANSNATIONAL CORP., a North Carolina corporation (the
“Company”) and John S. Russell (“Executive”).

          WHEREAS, the Company and Executive have entered into that certain
Executive Employment Agreement, dated as of December 3, 1998, as amended on
October 26, 1999 (the “Agreement”); and

          WHEREAS, the Company and Executive desire to amend the Agreement to
reflect the acquisition of the Company by Pharma Services Holding, Inc., a
Delaware Corporation (“Pharma”) pursuant to that certain Agreement and Plan of
Merger, dated as of April 10, 2003 by and among the Company, Pharma and Pharma
Services Acquisition Corp., a North Carolina corporation and wholly-owned
subsidiary of Pharma.

          NOW, THEREFORE, in consideration of the mutual covenants and agreements
and the representations and warranties herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree that the Agreement shall be
amended as follows, effective upon, and only upon, the Executive’s execution
hereof prior to November 17, 2003:

1.     The second sentence of the opening paragraph of the Agreement and the first
sentence of Section 2 of the Agreement shall each be amended by replacing
“Senior Vice President” with “Executive Vice President”.

2.     Section 2 of the Agreement shall be further amended by adding the following
sentence to the end of the first paragraph thereof:

        Executive shall also serve, without additional compensation, in such other
officer and director positions of Affiliates to which he may be appointed.

3.    Section 3.1 of the Agreement shall be amended to replace $16,666.00 with
$33,333.33, effective as of the Change in Control (as defined in Section 19.1,
as amended by this Amendment).

4.    Section 3.2 of the Agreement shall be amended to read as follows:

		
	 	     3.2 Annual Cash Bonus Plan. Executive may participate on a basis
commensurate with his position as a senior executive officer, as
determined by the Company, in the Company’s annual cash bonus plan which
may be made available from time to time to Company executives; provided,
however, that Executive’s participation is subject to the applicable
terms, conditions and

 

 

		
	 	eligibility requirements of the plan documents, some of which are within
the plan administrator’s discretion, as they may exist from time to time.

5.     Section 5.2 shall be amended to read as follows:

          5.2 If the Company terminates Executive’s employment pursuant to Section
4.1 (notice of non-renewal) or 4.2 (without cause), or if Executive terminates
Executive’s employment pursuant to Section 4.4 (breach of Agreement), then the
Company’s sole obligation to Executive, in lieu of any other damages or other
relief to which he otherwise may be entitled, shall be to pay: (i) amounts due
on the effective date of the termination; (ii) any amounts subsequently due
pursuant to the plan described in Section 3.2; and (iii) subject to Executive’s
compliance with Sections 6, 7, 8 and 9 and subject to Sections 3.7 and 5.6
(release), 36 monthly payments, where each payment equals Executive’s monthly
rate of base salary in effect at the time of such termination multiplied by
1.55.

6.     The first sentence of Section 5.3 of the Agreement shall be amended by
adding “(but in no event after the date the Executive becomes eligible for
comparable coverage)” immediately after the reference to Section 5.2.

7.     Section 5.5 of the Agreement shall be deleted in its entirety and labeled
“[Reserved]”.

8.     Section 18 of the Agreement shall be amended to read as follows:

          18. ENTIRE AGREEMENT. This Agreement, along with three letters from
Pharma to Executive, one dated September 12, 2003 relating to the acquisition
of stock of Pharma by rollover, and two dated November 3, 2003 relating to the
acquisition of stock under the Pharma Stock Incentive Plan (collectively, the
“Pharma letters”), (i) supersede all other understandings, offers and
agreements, oral or written, between or among Executive, Pharma, the Company or
any of their affiliates; and (ii) constitute the sole agreement between or
among Executive, Pharma and the Company with respect to employment,
compensation and benefits. Executive acknowledges that: (i) no
representations, inducements, promises or agreements, oral or written, have
been made by any party or by anyone acting on behalf of any party, which are
not embodied in this Agreement or the Pharma letters; and (ii) no agreement,
statement or promise not contained in this Agreement or the Pharma letters
shall be valid. No change or modification of this Agreement shall be valid or
binding upon the parties unless such change or modification is in writing and
is signed by the parties.

9.     Section 19.1 of the Agreement shall be amended to read as follows:

		
	 	     19.1 For purposes of this Agreement, a “Change in Control” shall
mean the consummation of the transactions pursuant to that certain
Agreement and Plan of Merger, dated as of April 10, 2003, as amended, by
and among the Company, Pharma Services Holding, Inc., a Delaware
corporation (“Pharma”), and Pharma

2

 

		
	 	Services Acquisition Corp., a North Carolina corporation and wholly-owned
subsidiary of Pharma (as such agreement may be amended from time to time,
the “Merger Agreement”).

10.     Section 19.2 of the Agreement shall be deleted in its entirety and labeled
“[Reserved]”.

11.     Section 19.3 of the Agreement shall be amended to read as follows:

		
	 	     19.3 Bonus. As soon as practicable following the occurrence of the
Change in Control, Executive shall be entitled to a cash bonus equal to
$500,000, less applicable withholdings. Such bonus shall not be taken
into account for purposes of determining any entitlement pursuant to
Section 5.2.

12.     Section 19.4 of the Agreement shall be amended by deleting subsection (B)
thereof, and by adding the following to the end of subsection (A):

		
	 	Executive acknowledges that all unexercised Options will be cancelled
upon the Change in Control, including without limit those with an
exercise price per share greater than or equal to $14.50, and will be
treated in the manner described in Section 2.9 of the Merger Agreement.

13.     Subsection (B) of Section 19.5 of the Agreement shall be amended to read as
follows:

		
	 	     (B) The Company will determine whether a Gross-Up Payment is
required pursuant to this Agreement and the amount thereof (the
“Determination”). If it is subsequently determined by the Internal
Revenue Service (“IRS”) on audit that Executive is in fact subject an
Excise Tax larger than that on which the Company based its Determination,
then the Company shall recalculate the Gross-Up Payment and pay to
Executive the additional amount required (including any interest or
penalties incurred by Executive due to the increase in the Excise Tax).
The Company, at its cost, may, on Executive’s behalf, challenge any
assessment or imposition of any Excise Tax by the IRS, and Executive will
assist and cooperate with the Company with respect to any such challenge.
Should Executive receive a refund of any Excise Tax previously paid,
Executive shall repay to the Company the portion of any Gross-Up Payment
made in respect of the Excise Tax so refunded. Executive will, with
respect to the applicability of the Excise Tax, take a position
consistent with that of the Company at all times.

14.     A new Section 20 shall be added to the Agreement to read as follows:

3

 

          20. TAX WITHHOLDING. The Company shall have the right to deduct and
withhold such amounts from any payment made hereunder as may be necessary to
enable the Company to satisfy any applicable withholding obligation imposed by
law.

          IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by
Executive and by a duly authorized officer of the Company as of the date and
year first above written.

	 	 	 	 	 
	 	 	QUINTILES TRANSNATIONAL CORP.
	 	 	 	 	 
	 	 	
By:	 	/s/ Beverly Rubin
Moyer
	 	 	 	 	

	 	 	 	 	Name: Beverly Rubin
Moyer
	 	 	 	 	Title:

	 	 
	 	/s/ John S. Russell
	 	

	 	John S. Russell

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