Document:

Exhibit 10.46

 

BIOSITE INCORPORATED

DIRECTOR FEE DEFERRAL PROGRAM

 

Biosite
Incorporated, a Delaware corporation (the “Company”), hereby offers Shadow
Stock Units to the Outside Director named below.  The Shadow Stock Units are offered in
exchange for all or a portion of the Outside Directors’ director fees payable
by the Company.  The terms and conditions
of the Shadow Stock Units are set forth in the attachment hereto and in the
Company’s 1996 Stock Incentive Plan (the “Plan”).

 

 

	
  Date of
  Election:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name of Director:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Director’s Social Security Number:

  	
   

  	
   

  	
   

  
								

 

 

I hereby elect to (check one):

 

	
   

  	
  o

  	
   

  	
  Commence deferral of director fees

  
	
   

  	
  o

  	
   

  	
  Not defer director fees

  
	
   

  	
  o

  	
   

  	
  Discontinue deferral of director fees effective as of the beginning
  of the next calendar year

  

 

 

By signing this
cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also attached

 

 

	
  Director:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  	
   

  
						

 

 

Purpose                                                                                                   To
provide nonemployee directors of Biosite Incorporated (“Company”) with a means
to defer income until termination of status as a director.  This opportunity is available pursuant to
Article 12 of the company’s 1996 Stock Incentive Plan (“Plan”) a copy of which
is attached hereto for your reference.

 

Eligibility                                                                                          Nonemployee
directors.

 

Election                                                                                                    You
must specify the amount or percentage of your director fees to be
deferred.  This election must be made in
writing to the Company no later than December 31 of the calendar year prior to
the calendar year in which your director fee otherwise would be paid.  However, for the first year in which you are
eligible to participate, the election may be executed during the calendar year
in which the services are performed so long as it is executed prior to the
performance of the services or portion of the services to which the deferral
relates.  The election is irrevocable
once the calendar year commences (or once services for the deferral are
performed in the case of the first year).

 

                                                                                                                                                In
subsequent years, deferral will take place automatically in accordance with the
election for the preceding year unless you revise or revoke the election prior
to the start of the calendar year.  The
amount deferred is an offset against and cannot exceed the amount of your
director fees for that calendar year.

 

Shadow Stock

Units                                                                                                                   Amounts
deferred in a calendar year will be treated as having been invested on your
behalf in shares of the Company’s Common Stock (“Shadow Stock Units”).

 

1.               The
share price of a Shadow Unit will be the Fair Market Value of a share of the
Company’s Common Stock as determined under the Plan on the day in which your
director’s fee would have been paid in cash, but for your election to defer.

 

 

2.               Company
Common Stock dividends or other distributions will be credited to your account
on the payment date for stockholders of record. 
These dividends/distributions will be treated as having been invested in
Company Common Stock.  The Shadow Stock
Units allocable to your account will also be based on the Fair Market Value of
a share of Company Common Stock, as determined under the Plan on the day in
which dividends or distributions would have been payable to you if you had
actually owned the underlying shares.

 

Payments                                                                                           Payment
will be made in one lump sum or in annual installments, in the sole discretion
of the Company.  If installment payments
are made, the number of installments will be the lesser of ten or twice the
number of years you have participated in this Director Fee Deferral
Program.  Payment will be made solely in
cash and will be based on the Fair Market Value of the underlying shares as of
the date of payment.

 

1.               If
your service as a director terminates between January 1 and June 30, the lump
sum payment or the first installment will be paid no later than December 31 of
the year of termination.

 

2.               If
your service as a director terminates between July 1 and December 31, the lump
sum payment or the first installment, may be deferred at the discretion of the
Company, until the January immediately following termination.

 

3.               If
payment is made in installments, the second installment will be paid during
January of the year following the year in which the first installment was paid
and all remaining installments will be paid annually in the month of January.

 

4.               In
the event of installment payments, your payments will be valued at the Fair
Market Value of a share of Company Common Stock on the date of that installment
payment.

 

5.               In
the event of your death, payments will be made in a lump sum to your designated
beneficiary.

 

 

Quarterly

Statements                                                                                   You
will receive a quarterly statement on the value of your account.

 

Tax Matters                                                                              If
you elect to defer your director fees, the fees will not be subject to federal
and California (you may want to check with your tax advisor regarding state
taxation outside of California) income tax until the year actually
received.  However, for Social Security
purposes, the fees will be treated as if received in the year of the
meetings to which the deferrals relate. 
Thus, you may have to include the deferrals in your tax return
for purposes of computing the 12.4% portion of your self-employment taxes
attributable to the old-age benefit (there is a limit of $65,400 for 1997) on
the amount of income subject to this portion). 
You will have to include the deferrals for purposes of the 2.9%
portion of your self-employment taxes attributable to the Medicare benefit
(there is no limit whatsoever for income subject to this portion).

 

Also, if you are receiving Social Security benefits at the time of the
meetings to which the deferrals relate, the deferrals will count as income in
the year of the meetings, with the result that your Social Security benefits
could be reduced by the deferrals.  You
should consult your tax advisor and review the attached summary carefully.

 

 

By signing the cover
sheet of this Agreement, you agree to all of the terms and conditions described
above and in the Plan.Exhibit 10.1

 

CLOSING
BALANCE SHEET AGREEMENT

 

This Closing Balance Sheet Agreement (this “CBS
Agreement”) is entered into on February 17, 2005 (the “Effective Date”), by and
among Pressure BioSciences, Inc. (formerly known as Boston Biomedica, Inc.
(“PBI”)), PBI Biotech Research Laboratories, Inc. (formerly known as BBI
Biotech Research Laboratories, Inc. (“PBI Biotech”)), and SeraCare Life
Sciences, Inc. (“SeraCare”).

 

RECITALS

 

A.            WHEREAS,
PBI, PBI Biotech and SeraCare are parties to that certain Asset Purchase
Agreement (the “Agreement”) dated April 16, 2004, as amended by that certain
Amendment No. 1 to Asset Purchase Agreement, dated July 20, 2004.

 

B.            WHEREAS,
in accordance with Section 2.5(a) of the Agreement, pursuant to a letter dated
November 12, 2004, SeraCare previously delivered to PBI and PBI Biotech the
Closing Balance Sheet (the “Closing Balance Sheet”).

 

C.            WHEREAS,
the parties have not been able to agree on the amounts set forth in the Closing
Balance Sheet, and therefore the applicable Adjustment Amount.

 

D.            WHEREAS,
pursuant to (i) that certain Letter Agreement Regarding Closing Balance Sheet
Matters, dated November 22, 2004, between SeraCare, PBI and BBI Biotech (the
“November 2004 Letter Agreement”), and (ii) that certain letter, dated December
17, 2004 from SeraCare to PBI, the parties have previously resolved their
disagreement over the amount of accounts receivable to be included in the
Closing Balance Sheet (the “December 2004 Letter Agreement”, together with the
November 2004 Letter Agreement, the “Accounts Receivable Agreements”) .

 

E.             WHEREAS,
in lieu of the dispute resolution provision set forth in the Agreement, the
parties wish to finally resolve the remaining disputes over the Closing Balance
Sheet as set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree as
follows:

 

AGREEMENT

 

                1.             All capitalized terms used but not
defined herein have the meaning ascribed to such terms in the Agreement.

 

                2.             Attached hereto as Exhibit A
are joint instructions (the “Joint Instructions”) to the Escrow Agent to
release $1.0 million (the “Final Adjustment Amount”) from the Escrow
Account.  Concurrently with the execution
of this CBS Agreement, the parties hereto will execute and deliver to the
Escrow Agent the Joint Instructions.

 

                3.             The Final Adjustment Amount shall
be treated by the parties as the equivalent of a binding determination by the
Independent Accountant as set forth in Section 2.5(d) of the Agreement,

 

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and therefore, upon SeraCare’s receipt of the Final Adjustment Amount,
the parties will be deemed to have resolved their disputes over the Closing
Balance Sheet.

 

                4.             The parties further agree that upon
SeraCare’s receipt of the Final Adjustment Amount, the parties will be deemed
to have released all claims they may have with respect to Sections 2.5(a) –
(d), Section 2.6, Section 2.7, Section 4.4(c), Section 4.10(b), Section 4.11
(excluding the first two sentences of Section 4.11), Section 4.23 and Section
4.24 of the Agreement (collectively, the “Related Sections of the Agreement”).

 

                5.             Pursuant to that certain letter,
dated November 24, 2004, from SeraCare to PBI, SeraCare has previously
delivered to PBI the purchase price allocation contemplated by Section 2.4(c)
of the Agreement (the “Purchase Price Allocation”).  Effective upon SeraCare’s receipt of the
Final Adjustment Amount, the parties agree that the Purchase Price Allocation
shall be revised as set forth in Exhibit B attached hereto.

 

                6.             Each of PBI, PBI Biotech and
SeraCare hereby waive and release any rights, remedies or claims and covenant
not to sue each other with respect to the failure by PricewaterhouseCoopers
LLP, the former auditors of PBI, to consent to the incorporation (directly or
by reference) of the audited financial statements of PBI for fiscal 2002 into
the filings of SeraCare and PBI with the Securities and Exchange Commission.

 

                7.             Subject only to the express terms
of this CBS Agreement, each of the parties may exercise any right or remedy
available to them pursuant to the Agreement, including without limitation, each party’s
right to pursue (i) claims for fraud or intentional misrepresentation, and (ii)
any other claims either party may now or in the future
have under the Agreement. Further, PBI may continue to
exercise any right or remedy available to it and any other claims it may now or
in the future have pursuant to the Accounts Receivable Agreements, including
without limitation, the right to receive the full amount of any account
receivable deemed past due pursuant to the December 2004 Letter Agreement (the
“Past Due Receivables”) and for which SeraCare has previously been paid
$412,192.08 from the Escrow Fund, either from SeraCare (in the event SeraCare
receives any payment (full or partial) for any Past Due Receivable from the
account debtor) or from the account debtor.

 

                8.             SeraCare
agrees that it will not interfere in any manner with the consummation by PBI of
it’s tender offer that was commenced on December 27, 2004.

 

                9.             This
CBS  Agreement shall be construed,
interpreted and the rights of the parties determined in accordance with the
laws of the State of Delaware.

 

                10.           This
CBS Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective legal representatives, successors and assigns.

 

                11.           This
CBS 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
instrument. 

 

[Signatures on Following
Page]

 

2

 

 

IN WITNESS WHEREOF, the
parties have executed this CBS Agreement by their duly authorized
representatives effective as of the Effective Date.

 

	
  Pressure
  BioSciences, Inc.

  	
   

  	
   

  	
  SeraCare
  Life Sciences, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Richard T. Schumacher

  	
   

  	
  By:

  	
  /s/ Jerry L. Burdick

  
	
  Name:

  	
  Richard T. Schumacher

  	
   

  	
  Name:

  	
  Jerry L. Burdick

  
	
  Title:

  	
  President and Chief Executive Officer

  	
   

  	
  Title:

  	
  Acting Chief Financial
  Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PBI Biotech Research Laboratories, Inc.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Richard T. Schumacher

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Richard T. Schumacher

  	
   

  	
   

  	
   

  
	
  Title:

  	
  President and Chief Executive Officer

  	
   

  	
   

  	
   

  

 

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