Document:

exv10w6

 

EXHIBIT 10.6

PRIDE INTERNATIONAL, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

PARTICIPATION AGREEMENT

          THIS PARTICIPATION AGREEMENT (this “Participation Agreement”), entered into effective as of
the date fully executed by both parties as set forth on the signature page below, (the “Effective
Date”), by and between Pride International, Inc. (the “Company”), and W. Gregory Looser (the
“Executive”);

WITNESSETH:

          WHEREAS, the Company has established the Pride International, Inc. Supplemental Executive
Retirement Plan, as amended and restated effective May 18, 2004 (the “Plan”), to generally assist
the Company and its Affiliates in retaining, attracting and providing a retirement benefit to
certain selected salaried officers and other key management employees; and

          WHEREAS, the Company and the Executive have entered into an employment agreement, effective as
of March 23, 2004 (the “Employment Agreement”); and

          WHEREAS, the Committee has selected the Executive for participation in the Plan as more fully
described herein; and

          NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the Company and the Executive agree to the form of this Participation Agreement as follows:

          1. Reference to Plan. Terms not otherwise defined herein shall have the same meaning
as ascribed thereto in the Plan. This Participation Agreement is being entered into in accordance
with and subject to all of the terms, conditions and provisions of the Plan and administrative
interpretations thereunder, if any, which have been adopted by the Committee and are still in
effect on the date hereof. The Executive acknowledges he has received a copy of, and is familiar
with the terms of, the Plan which are hereby incorporated herein by reference.

          2. Benefit Percentage. As of the Effective Date and subject to the forfeiture and
vesting requirements of the Plan as supplemented by this Participation Agreement, the Executive is
a Participant in the Plan and is entitled to a SERP Benefit equal to 50% of Final Annual Salary, as
described in Section 4 of the Plan, subject to the applicable reduction factor as set forth in
Section 4.8 of the Plan for payments provided before Executive’s Normal Retirement Date.

          3. Vesting. The Executive’s contingent right to receive the SERP Benefit shall vest
on the dates and in the percentages as set forth below; provided, however, that in the event of the
Executive’s “Termination” (as defined in the Employment Agreement) the benefits payable under the
Plan shall be fully vested:

 

 

	 	 	 	 	 
	Date	 	Percentage Vested
	January 1, 2006

	 	 	20	%
	 
	 	 	 	 
	January 1, 2007

	 	 	40	%
	 
	 	 	 	 
	January 1, 2008

	 	 	60	%
	 
	 	 	 	 
	January 1, 2009

	 	 	80	%
	 
	 	 	 	 
	January 1, 2010

	 	 	100	%

Except for the amount of the benefit payable being reduced to the applicable Percentage Vested set
forth above, any benefit payable under this paragraph 3 shall be payable on all of the same terms
and conditions, including timing, set forth in the Plan for a Early or Normal Retirement Benefit,
as applicable.

          4. Change in Control. To the extent the Executive is entitled to a supplemental
payment (a “gross up payment”) to be made pursuant to the Employment Agreement to the Executive as
necessary to offset or mitigate the impact of the golden parachute excise tax on the Executive,
such provision shall control with respect to any benefit paid to the Executive pursuant to Section
4.4 of the Plan.

          5. Retiree Medical Benefits. As of the date the Executive terminates employment with
any vested right to a SERP Benefit pursuant to the terms of the Plan and this Participation
Agreement, whether or not the SERP Benefit commences on termination, the Executive shall be deemed
to have satisfied the eligibility requirements to be a qualifying retiree for retiree medical and
dental benefits. For this purpose, and regardless whether at such time the Company makes retiree
medical and dental coverage available to employees generally, retiree medical and dental coverage
shall be provided until the Executive’s death, shall extend to the Executive, his spouse (if any)
as of the date of termination of employment, and his eligible dependents who were covered under the
Company’s group health plan as of the date of termination of employment (“Eligible Dependents”),
and shall be at least as favorable as the group medical and dental coverage offered to employees of
the Company who serve in an executive capacity; provided, however, that coverage shall (i) be
suspended during any period the Executive is eligible for and covered by other group medical
coverage provided by another employer, (ii) at such time as the Executive or the Executive’s
spouse, as applicable, becomes eligible for and covered by Medicare, be converted to Medicare
Supplement coverage (providing coverage for deductibles and coinsurance in excess of coverage under
Medicare Part A and B or any successor to such parts), and (iii) terminate with respect to Eligible
Dependents, other than the Executive’s spouse, at such time as the Eligible Dependents are no
longer eligible for coverage under the terms of the group medical plan maintained for active
executives of the Company. The Executive shall be responsible for the payment of the applicable
premiums for the cost of coverage at the same rate paid by active employees of the Company who
serve in an executive capacity. This eligibility shall commence at the time of the Executive’s
termination of employment or, if later, upon the expiration of continued health insurance coverage
as provided under the Employment Agreement.

          6. Tax Withholding. The Executive agrees that the payor of the Plan benefit may take
whatever steps the payor, in its sole discretion, deems appropriate or necessary to

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satisfy state and federal income tax, social security, Medicare, other tax withholding
obligations arising out of the benefits payable under this Participation Agreement.

          7. Status of Participation Agreement. The benefits payable under this Participation
Agreement shall be independent of, and in addition to, any other agreement relating to the
Executive’s employment that may exist from time to time between the parties hereto, or any other
compensation payable by the Employer to the Executive, whether salary, bonus or otherwise. This
Participation Agreement shall not be deemed to constitute a contract of employment between the
parties hereto, nor shall any provision hereof, except as expressly stated, restrict the right of
the Employer to discharge the Executive or restrict the right of the Executive to terminate the
Executive’s employment.

          8. Entire Agreement. This Participation Agreement and the Plan constitute the entire
understanding between the parties hereto with respect to the subject matter hereof, and all
promises, representations, understandings, arrangements and prior agreements, including any
agreements under the Prior Plan, are superseded in their entirety by this Participation Agreement
and the Plan. The terms and conditions of this Participation Agreement and the Plan supersede
Sections 3.05(d) and (f) of the Employment Agreement or any such other successor provisions and
Sections 3.05(d) and (f) of the Employment Agreement are not applicable to any benefit under the
Plan. This Participation Agreement may be amended, modified or terminated, in whole or in part, at
any time by a written instrument executed by both parties hereto. Notwithstanding anything to the
contrary in the Plan, this Participation Agreement may set forth specific terms or provisions
modifying the terms of the Plan with respect to the Executive, and the terms of this Participation
Agreement shall be controlling.

          9. Severability. If, for any reason, any provision of this Participation Agreement is
held invalid, in whole or in part, such invalidity shall not affect any other provision of this
Agreement not so held invalid, and each such other provision shall to the full extent consistent
with law continue in full force and effect. If this Agreement or any portion thereof conflicts
with any law or regulation governing the activities of the Employer, this Participation Agreement
or appropriate portion thereof shall be deemed invalid and of no force or effect.

          10. Governing Law. This Participation Agreement shall be governed by and construed in
accordance with the laws of the State of Texas.

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          IN WITNESS WHEREOF, the parties have executed this Participation Agreement (in multiple
copies) as of the date set forth below.

	 	 	 	 	 	 	 
	 	 	PRIDE INTERNATIONAL, INC.
	 
	 	 	 	 	 	 
	

	 	By
	 	/s/ Paul A. Bragg	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Paul A. Bragg	 	 
	ATTEST:

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	/s/ Alex Cestero

	 	 
	 	Date: January 28, 2005	 	 
	 

	 	 	 	 	 	 
	Assistant Secretary
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	/s/ W. Gregory Looser
	 	 	 	 	 	 	 
	 	 	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	

	 	 
	 	Date: January 28, 2005	 	 
	

	 	 	 	 	 	 

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Exhibit 10.1

PRA INTERNATIONAL

FORM OF OPTION AGREEMENT

     THIS OPTION AGREEMENT (the “Agreement”)
evidences an agreement made as of the ___th day of
________,
200___ (the “Date of Grant”), by and
between __________ (the “Optionee”), and PRA
INTERNATIONAL, a Delaware corporation (the “Corporation”).

     WHEREAS, Optionee is an employee of Pharmaceutical Research Associates, Inc., a Virginia
corporation, or another subsidiary of the Corporation (the “Employer”).

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein set forth, it
is agreed as follows:

     1. Option. In consideration of the Optionee’s employment with the Employer, the
Corporation hereby grants to the Optionee the option to purchase that number of shares of the
Corporation’s Common Stock at the exercise price set forth on Schedule 1 hereto (the
“Option”), subject to the terms and conditions of this Option Agreement and the PRA International
2004 Incentive Award Plan (the “Plan”) (attached at Exhibit 1). The Option is intended to qualify
as an “incentive stock option” within the meaning of Section 422 of the Code. To the extent that
the Option does not so qualify that portion of the Option shall be treated as a non-qualified
option under Section 422 of the Code. All capitalized terms not otherwise defined herein shall
have the meanings ascribed thereto in the Plan.

     2. Vesting of Options.

          (a) The Option shall vest in accordance with the terms set forth on Schedule 1 and the
terms of Section 3 hereof.

          (b) Unless sooner terminated in accordance with the terms hereof, the Option shall terminate
(whether or not vested) on the seventh (7th) anniversary of the Date of Grant.

     3. Expiration of the Option.

          (a) Death or Disability of Employee. In the event that the Optionee’s employment is
terminated by reason of death or disability, the unvested portion of the Option that would
otherwise vest on the next anniversary of the Date of Grant will automatically vest on a pro rata
basis for the period commencing on the Date of Grant or, if applicable, the most recent anniversary
of the Date of Grant and ending on the date the Optionee’s employment is so terminated, and all
other unvested Options will automatically terminate. The vested portion of the Option shall be
exercisable by the Optionee’s beneficiary or estate for a period of the earlier of (i) eighteen
(18) months following Optionee’s death or disability or (ii) the seventh (7th)
anniversary of the Date of Grant. If
the vested portion of the Option is not exercised within the earlier of (i) eighteen (18)

 

 

months following Optionee’s death or disability or (ii) the seventh (7th) anniversary of
the Date of Grant, then such vested portion of the Option shall expire and shall no longer be
exercisable.

          (b) Cause. In the event that the Optionee’s employment is terminated by the Employer
for Cause (as defined below) the Option will automatically terminate and expire and shall no longer
be exercisable, whether or not previously vested. For purposes of this Agreement, “Cause” shall
mean: (i) a material failure of the Optionee to perform his duties and functions as an employee;
(ii) Optionee’s willful failure to perform his material assigned duties without an excuse that is
reasonably acceptable to Employer; (iii) Optionee engages in an act (or causes an act) that has a
material adverse impact on the reputation, business, business relationships or financial condition
of Employer; (iv) the conviction of or plea of guilty or nolo contendere by Optionee to a felony or
any crime involving moral turpitude, fraud or misrepresentation; (v) misappropriation or
embezzlement by Optionee of funds or assets of Employer.

          (c) Other Termination. In the event that the Optionee’s employment is terminated for
any reason other than death, disability or Cause, the unvested portion of the Option will
automatically terminate. The Optionee shall have the right, in the Optionee’s sole discretion, for
a period of thirty (30) days following such termination of employment to exercise the Option. If
the Optionee does not exercise the vested portion of the Option within 30 days after his/her
employment so terminates, then the Option shall expire and shall no longer be exercisable.

          (d) Forfeiture for Competition. In the event that during Optionee’ employment or
during a period of [ ] months thereafter (the “Noncompetition Period”), Optionee, whether as
owner, manager, officer, director, employee, consultant or otherwise, is engaged or employed by a
Competing CRO to provide Customer Services that are the same or substantially similar to the
Customer Services that Optionee performed for Employer at any time during the twenty-four (24)
months prior to the termination of Optionee’s employment (the “Prohibited Services”), then in
addition to other remedies available to the Corporation, Optionee shall immediately forfeit all
rights under the Option that may have been granted to Optionee or to which Optionee may be
entitled, whether the same are then vested or not. In addition, to the extent that Optionee
exercises any of the Option during the Noncompetition Period and provides Prohibited Services then
such exercise shall be rescinded and all such shares of common stock of the Corporation purchased
by Optionee pursuant to the exercise of such Option during the Noncompetition Period may be
repurchased by the Corporation, in its sole discretion, at the price paid by Optionee for such
shares of common stock. To the extent that the Optionee has sold or otherwise disposed of any
shares acquired upon exercise of the Option, then the Optionee shall pay back to the Corporation
any and all proceeds received by the Optionee as a result of such sale or other disposition. The
Optionee shall also return all dividends or other distributions, if any, paid on such shares.

     The Corporation acknowledges and agrees that ownership by Optionee 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 shall not be deemed, in and of itself, to violate the
prohibitions set forth in this section.

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     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, (i) during Optionee’s employment with Employer or (ii) about which Optionee has material
knowledge and that Optionee knows Employer will provide or has contracted to provide to third
parties during the twelve (12) months following the Optionee’s employment with Employer.
“Customer” means any person or legal entity (and its subsidiaries, agents, employees and
representatives) about whom Optionee has acquired material information based on employment with
Employer and as to whom Optionee 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, Kendle International Inc., MDS Pharma
Services, Omnicare, Inc., PAREXEL International Corporation, Pharmaceutical Product Development,
Inc., Quintiles Transnational Corp., SFBC International, Inc., and United HealthCare Corporation.

     4. Exercise of Option. To the extent exercisable, the Optionee may exercise the vested
portion of the Option at anytime in whole or in part prior to its termination under Section 2(b) or
Section 3 above by giving written notice of such exercise to the Corporation, in such form and at
such time as the Corporation may specify from time to time. As a condition to the exercise of any
portion of the Option, the Optionee may be required to execute such documents and make such
representations as the Corporation may require in order to comply with applicable law. The Option
may not be exercised until Optionee shall have delivered to the Corporation the aggregate exercise
price per Share of the number of Shares for which the Option is being exercised. The exercise
price may be paid by any method prescribed in Section 5.1(c) of the Plan.

     5. Construction and Binding Effect. This Agreement shall be construed according to the
laws of the State of Delaware, without giving effect to any conflict or choice of law provision,
and shall bind the parties, their permitted assigns and their personal representatives.

     6. Invalidity. The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the other provisions, and the Agreement shall be construed in all
respects as if an invalid or unenforceable provision were omitted.

     7. Entire Agreement. This document contains the entire agreement between the parties
and no modification or change in this Agreement shall be valid unless the same shall be in writing
and signed by the parties hereto.

3

 

     8. 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 nationally recognized
overnight delivery service (for next business day delivery), shipping prepaid, as follows:

If to Employer, to:

PRA International

12120 Sunset Hills Road, Suite 600

Reston, VA 20190

Attn:     President and Chief Executive Officer

If to Optionee, to:

The Optionee’s then home address currently on file with the Corporation

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 9, or, if sent by
Federal Express or other nationally recognized overnight delivery service, one business day after
such sending.

     9. 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.

     10. No Right to Future Grants. The grant of this Option is a voluntary act by the
Corporation and does not give the Optionee any right to, or otherwise obligate the Corporation to
grant any additional options in the future.

4

 

     IN WITNESS WHEREOF, the parties hereto have signed this Option Agreement as of the date first
above written.

	 	 	 
	

	 	CORPORATION:
	 
	 	 
	

	 	PRA INTERNATIONAL
	 
	 	 
	

	 	By:    ___________________________________________
	

	 	Title: President and CEO
	 
	 	 
	 
	 	 
	

	 	OPTIONEE:
	 
	 	 
	 
	 	 
	 
	 	 
	

	 	 
	 
	 	 
	 
	 	 
	

	 	Address:

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