Document:

exhibit10-1.htm

EXHIBIT 10.1

Construction Loan Agreement                                                               

THIS CONSTRUCTION LOAN AGREEMENT is made as of the 29th day of July, 2011, by and between EMERGENT BIOSOLUTIONS INC., a Delaware corporation (the “Borrower”), EMERGENT MANUFACTURING OPERATIONS BALTIMORE LLC, a Delaware limited liability company (“Guarantor”), and PNC BANK, NATIONAL ASSOCIATION (the “Bank”).

RECITALS:

A.  The Borrower has requested that the Bank provide a construction loan to the Borrower in an aggregate amount not to exceed Thirty Million and No/100 Dollars ($30,000,000.00) (the “Loan”).  Each initially capitalized term used in these Recitals shall have the meaning set forth in Section 1.1.

B.  The Loan will be used by the Borrower to fund the cost of refinancing the acquisition loan and the construction on the Land of the Improvements in accordance with the Plans (the Land and the Improvements, together with any and all other improvements now or hereafter located or constructed on the Land are sometimes hereinafter referred to collectively as the “Project”).

C.  The Bank is willing to provide the Loan upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:

ARTICLE 1 - DEFINITIONS

1.1. Definitions.  In addition to words and terms defined in the Recitals or elsewhere in this Agreement, the following terms shall have the meanings provided below:

“Agreement” means this Construction Loan Agreement, including all schedules and exhibits hereto, as the same may be amended, replaced or supplemented from time to time.

“Assignment of Rents” means that certain Assignment of Rents, Leases and Profits of even date herewith, given by Borrower to the Bank with respect to the Property, as the same may be amended, replaced or supplemented from time to time.

“Closing Date” means the date of this Agreement.

“Completion Date” means the earlier of July 28, 2012, or the date on which the Construction Consultant issues a certificate to the Bank stating that the Improvements have been completed in accordance with the Plans / the date on which an unconditional certificate of occupancy is issued for the Project.

“Consolidated Group” means the Borrower and all of its subsidiary and affiliate entities on a consolidated basis.

“Construction Consultant” means such person or entity as the Bank may designate from time to time to inspect construction of the Improvements and perform other services with respect thereto on behalf of the Bank.

“Construction Contract” means that certain construction contract dated as of September 15, 2010, between Guarantor and the Contractor, and all exhibits and attachments thereto, as the same may be amended from time to time with the Bank’s prior written consent.

“Contractor” means Whiting-Turner Contracting Company, Inc. or such other contractor as may be approved by the Bank, and shall include all subcontractors of Contractor as provided in the Construction Contract.

“Deed of Trust” means the Indemnity Deed of Trust, Assignment and Security Agreement given by Guarantor to the Bank and securing the Note, as the same may be amended, replaced or supplemented from time to time.

“Development Documents” means the Construction Contract, the Plans, all consents, licenses, permits, authorizations and approvals relating to the construction, completion, management, use and occupancy of the Improvements and all other instruments, documents and rights required or in any way relating to the design, construction, renovation, use, occupancy or ownership of the Improvements, whether now existing or hereafter arising, which Development Documents have been assigned to the Bank as security for the Loan pursuant to Article 8 hereof.

“Equity Contribution” means the Borrower’s contribution of not less than Ten Million and No/100 Dollars ($10,000,000.00) towards the cost of the Project.

“Guaranty” means that certain Guaranty and Suretyship Agreement (Payment and Completion) given by the Guarantor to the Bank, as the same may be amended, replaced, or supplemented from time to time.

“Improvements” means the manufacturing facility and related improvements to be constructed on the Land in accordance with the Plans.

“Land” means that certain legally subdivided parcel or parcels of land located in the City of Baltimore, Maryland, as more particularly described on Exhibit A to the Deed of Trust.

“Loan” means the loan to be made by the Bank pursuant to this Agreement, as evidenced by the Note.

“Loan Documents” means this Agreement, the Note, the Deed of Trust, the Assignment of Rents, the Guaranty and all other indemnification agreements, documents, instruments, certificates and agreements now or hereafter executed in connection with the Loan, as the same may be amended, replaced, or supplemented from time to time.

“Note” means the promissory note of the Borrower payable to the order of the Bank, as the same may be amended, renewed, replaced, or supplemented from time to time.

“Plans” means the plans and specifications for the Improvements prepared by the Borrower, as the same may be amended in accordance with this Agreement.

“Project Budget” means the project budget attached as Exhibit A hereto, as the same may be amended in accordance with this Agreement.

“Project Costs” shall mean the total costs to complete the Improvements, as described in the Project Budget attached as Exhibit A hereto (without amendment or revision).

“Property” shall have the meaning ascribed to such term in the Deed of Trust.

ARTICLE 2 -  LOAN; LOAN DOCUMENTS

2.1. Loan.  Subject to the terms and conditions hereinafter set forth, the Bank agrees to make the Loan to the Borrower.  The Bank and the Borrower acknowledge and agree that the Bank will disburse the proceeds of the Loan only for the payment of or reimbursement for the actual costs, fees and expenses incurred by the Borrower or the Guarantor in connection with (a) the refinancing of the acquisition of the Land, (b) the construction and development of the Improvements as herein set forth, and (c) Loan closing costs and fees, as shown on the Project Budget, with all such disbursements to be made in accordance with the terms and subject to the conditions set forth in this Agreement.

2.2. Operating Account; Disbursements.  The Borrower will maintain with the Bank throughout the term of the Loan a commercial operating account.  The Borrower hereby authorizes the Bank to make disbursements of Loan proceeds by the Bank’s crediting of such disbursements directly into such account, and the Borrower agrees that such disbursements shall constitute an advance under the Note.  The Borrower agrees to pay all normal and customary charges of the Bank for maintaining such account.

2.3. Loan Fee.  The Borrower will pay to the Bank a non-refundable construction loan fee (the “Loan Fee”) in the amount of forty (40) basis points (0.40%) of the total aggregate amount drawn under the Loan and the equipment loan made to the Borrower by PNC Equipment Finance, LLC on or about the date hereof.  Eighty Four Thousand Dollars ($84,000.00) of the Loan Fee will be paid to the Bank on or before Closing, and the remainder of the Loan Fee will be paid to the Bank on or before the Completion Date.

ARTICLE 3 -  REPRESENTATIONS AND WARRANTIES

Each of the Borrower and the Guarantor hereby represents and warrants to the Bank as follows, which representations and warranties shall be automatically recertified to the Bank with each disbursement request:

3.1. Existence, Power and Authority.  Each of the Borrower and the Guarantor is duly organized or incorporated, validly existing and in good standing under the laws of the State of its incorporation or organization and has the power and authority to own and operate its assets and to conduct its business as now or proposed to be carried on, and is duly qualified, licensed and in good standing to do business in all jurisdictions where its ownership of property or the nature of its business requires such qualification or licensing.  Each of the Borrower and the Guarantor is duly authorized to execute and deliver the Loan Documents executed by it, all necessary action to authorize the execution and delivery of the Loan Documents has been properly taken, and each of the Borrower and the Guarantor is and will continue to be duly authorized to borrow under this Agreement and to perform all of the other terms and provisions of the Loan Documents.

3.2. Financial Statements.  The Borrower and the Guarantor (on a consolidated basis) have provided or caused to be provided to the Bank its most recent balance sheet, income statement and statement of cash flows (to the extent available) (the “Historical Financial Statements”).  The Historical Financial Statements are true, complete and accurate in all material respects and fairly present the financial condition, assets and liabilities, whether accrued, absolute, contingent or otherwise and the results of the Borrower’s and the Guarantor’s operations for the period specified therein.  The Historical Financial Statements have been prepared in accordance with generally accepted accounting principles consistently applied from period to period subject in the case of interim statements to normal year-end adjustments and to any comments and notes acceptable to the Bank in its sole discretion.

3.3. No Material Adverse Change.  Except as disclosed on Exhibit B attached hereto, since the date of the most recent Historical Financial Statements, neither the Borrower nor the Guarantor has suffered any damage, destruction or loss, and no event or condition has occurred or exists, which has resulted or could result in a material adverse change in its business, assets, operations, condition (financial or otherwise) or results of operation.

3.4. Binding Obligations.  Each of the Borrower and the Guarantor has full power and authority to enter into the transactions provided for in this Agreement and has been duly authorized to do so by appropriate action of its Board of Directors with respect to the Borrower or of its sole member with regard to the Guarantor, or otherwise as may be required by law, charter, other organizational documents or agreements; and the Loan Documents, when executed and delivered by the Borrower and the Guarantor, will constitute the legal, valid and binding obligations of the Borrower and of the Guarantor enforceable in accordance with their terms.

3.5. No Defaults or Violations.  There does not exist any Event of Default under this Agreement or any material default or violation by the Borrower or the Guarantor of or under any of the terms, conditions or obligations of:  (a) its articles or certificate of incorporation, regulations or bylaws if the Borrower or the Guarantor is a corporation or its other organizational documents as applicable; (b) any indenture, mortgage, deed of trust, franchise, permit, material contract, material agreement, or other instrument to which it is a party or by which it is bound; or (c) any law, ordinance, regulation, ruling, order, injunction, decree, condition or other requirement applicable to or imposed upon it by any law, the action of any court or any governmental authority or agency; and the consummation of this Agreement and the transactions set forth herein will not result in any such default or violation or Event of Default.

3.6. Litigation.  Except as disclosed in the Borrower’s quarterly report filed with the Securities and Exchange Commission on May 6, 2011, there are no actions, suits, proceedings or governmental investigations pending or, to the knowledge of the Borrower or the Guarantor, threatened against the Borrower or the Guarantor, which could result in a material adverse change in its business, assets, operations, condition (financial or otherwise) or results of operations and there is no basis known to the Borrower or the Guarantor for any action, suit, proceeding or investigation which could result in such a material adverse change.

3.7. Title; Subdivision; Access.  The Guarantor has clear and marketable fee simple title to the Property, free, clear and unencumbered, of record and in fact, except for and subject only to those matters permitted by the terms of the Deed of Trust.  The Guarantor has been granted all easements appropriate for construction of the Improvements.  The Land is a separately subdivided parcel or parcels under applicable laws regulating subdivision and land development.  All streets necessary for the full utilization of the Land have been completed, and the Land has direct, unfettered access to sewer right-of-ways.

3.8. Utilities.  All utility services necessary for the construction of the Improvements and the use and operation thereof for their intended purposes, including water, storm and sanitary sewer facilities, electric, gas, and telephone, are available at the boundaries of the Land and shall, by the Completion Date, be installed and operating.

3.9. Information.  The Guarantor has delivered to the Bank a true and correct copy of the Development Documents and any certificates, consents, amendments, waivers and other documents executed in relation therewith, and there have been no other amendments, waivers or modifications thereof.  All surveys, plat plans and similar documents furnished by the Guarantor to the Bank are accurate and complete in all material respects as of their respective dates.

3.10. Zoning and Governmental Approvals.  The development, construction, use and occupancy of the Improvements in accordance with the Plans will conform to all applicable laws, all existing governmental approvals and all covenants, conditions and restrictions contained in a deed, lease or other instrument or agreement covering or affecting all or any portion of the Project.  All governmental approvals (except to the extent the same are of a nature so as not to be obtainable until a later stage of construction or completion of the Improvements) have been obtained and are valid and in full force and effect, including approval of the Plans.

3.11. Contracts.  There are no contracts affecting or relating to the management or operation of the Project that have a material impact on such management or operation except the Construction Contract and any other Development Documents heretofore delivered to the Bank.

3.12. Regulatory Matters.  No part of the proceeds of the Loan will be used for “purchasing” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the Federal Reserve System as now and from time to time in effect or for any purpose which violates the provisions of the Regulations of such Board of Governors.

3.13. Solvency.  As of the date hereof and after giving effect to the transactions contemplated by the Loan Documents, (i) the aggregate value of the Consolidated Group’s assets will exceed its liabilities (including contingent, subordinated, unmatured and unliquidated liabilities), (ii) the Consolidated Group will have sufficient cash flow to enable it to pay its debts as they become due, and (iii) the Consolidated Group will not have unreasonably small capital for the business in which it is engaged.

3.14. Disclosure.  None of the Loan Documents contains or will contain any untrue statement of material fact or omits or will omit to state a material fact necessary in order to make the statements contained in this Agreement or the Loan Documents not misleading.

ARTICLE 4 -  AFFIRMATIVE COVENANTS OF BORROWER

The Borrower and the Guarantor covenant and agree that until the Loan is paid in full, the Borrower and the Guarantor shall:

4.1. Use of Proceeds.  Use the proceeds of the Loan only for the purposes provided for in Section 2.1 hereof.

4.2. Construction.  Cause the ongoing construction of the Improvements to be carried forward with diligence and continuity for completion by the Completion Date.  The Borrower and the Guarantor shall cause the Improvements to be constructed in accordance with the Plans and all applicable zoning, building, and other laws, statutes, codes, ordinances, rules and regulations, and all applicable agreements, covenants and restrictions and utilize only the Contractor to complete the Improvements.

4.3. Books and Records.  Make available for inspection by a duly authorized representative of the Bank any of the Borrower’s or the Guarantor’s books and records insofar as they relate to the Project at such times as may be reasonably requested by the Bank; and furnish to the Bank, upon reasonable notice to the Borrower by the Bank, such information regarding its business affairs and financial condition as the Bank may reasonably request.

4.4. Reimbursement.  Reimburse the Bank promptly for all costs and expenses paid or incurred by the Bank in connection with the Loan, including the cost of title insurance premiums, charges and update fees, reasonable fees and expenses of the Bank’s attorneys, survey costs, appraisal costs, flood search costs, environmental consultant fees, all reasonable costs and expenses of the Construction Consultant whether incurred prior to or during construction, lending fees, recording fees and taxes and all other expenses paid in connection with the preparation, closing and administration of the Loan.

4.5. Compliance with Covenants, Agreements and Laws.  Comply with all applicable laws, covenants and restrictions now of record affecting all or any part of the Property.  The Borrower and the Guarantor shall comply with the Development Documents and all other material obligations under other contracts, instruments and agreements to which it is a party or to which any of its properties or assets may be subject.

4.6. Insurance.  Obtain and keep in full force and effect such insurance as may be required by the Bank from time to time as set forth in the Deed of Trust.

4.7. Financial Requirements.  Comply with the financial covenants set forth on Exhibit C attached hereto and made a part hereof, and shall furnish or cause to be furnished to the Bank such other information as the Bank may reasonably request from time to time.

4.8 Appraisal.  Reimburse the Bank promptly for all costs and expenses paid or incurred by the Bank in connection with an MAI appraisal of the Property prepared by an MAI appraiser engaged by the Bank, which shall state a fair market value of the Property after completion of the Improvements and be acceptable in form and substance to the Bank.  A copy of the appraisal will be shared with the Borrower.

ARTICLE 5 -  NEGATIVE COVENANTS OF BORROWER

The Borrower covenants and agrees that until the Loan is paid in full, the Borrower shall not:

5.1. Changes; Modifications of Contracts.  To the extent that such action would cause any material change in the total amount of the Project Budget, cause any change in the Plans, modify the terms and conditions of the Construction Contract, modify the terms and conditions of any subcontract or material order or any other contract delivered to and approved by the Bank and relating to the design, operation, use, construction or management of the Improvements, or in the identity of the Contractor without the Bank’s prior written consent, which consent shall not be unreasonably withheld.

5.2. Ownership of Materials and Personal Property.  Without the Bank’s prior written consent, which consent shall not be unreasonably withheld, and excluding any government furnished equipment provided to the Borrower or the Guarantor for use at the Property, cause any materials, equipment, personal property or fixtures of any kind to be purchased or acquired for installation or use in or about the Improvements under any conditional sales contract or security agreement or lease agreement.  Any such materials, equipment, personal property or fixtures of any kind purchased or acquired for installation or use in or about the Improvements shall be the property of the Borrower or the Guarantor, and shall not be subject to any liens other than those in favor of PNC Equipment Finance, LLC.

5.3. Publicity.  Erect any sign on the Property or engage in other publicity regarding the financing provided by the Bank without the Bank’s prior written approval.  Promptly after request by the Bank, the Borrower will erect on the Property up to two (2) financing signs provided by the Borrower to the specifications and satisfaction of the Bank and the Borrower.

5.4. Transfer of Interests.  Permit the sole member of the Guarantor to sell, assign, give, mortgage, pledge, encumber or otherwise transfer any interest in the Guarantor, without the Bank’s prior written consent.  The Borrower will not liquidate, merge or consolidate with any person, firm, corporation or other entity, or sell, lease, transfer or otherwise dispose of a material portion of its operating property or assets, whether now owned or hereafter acquired; provided, however, that the foregoing restrictions do not apply to any merger or consolidation where the following conditions are satisfied:

 

                                (a) the Borrower or an entity controlled by the Borrower shall be the continuing or surviving entity of such merger or consolidation;

                               

          (b) such merger or consolidation shall be non-hostile;

(c) the person, firm, corporation or other entity with which the Borrower will merge or consolidate shall conduct, or have conducted within the last three (3) years, lines of business that are substantially similar or complementary to one or more of the principal businesses of the Borrower in the ordinary course;

(d) such merger or consolidation shall not include or result in any contingent liabilities (other than contingent value rights or similar contingent liabilities dependent upon the success of the business of Borrower’s merger or consolidation partner) that could reasonably be expected to have a material adverse effect upon the business, financial condition, operations or prospects of the Borrower, taken as a whole (as reasonably determined in good faith by the Bank);

(e) (i)  immediately before and immediately after giving pro forma effect to any such merger or consolidation (including all indebtedness to be incurred in connection therewith), no Event of Default shall have occurred and be continuing and (ii) immediately after giving effect to such merger or consolidation, the Consolidated Group shall be in pro forma compliance with all of the covenants set forth on Exhibit C, such compliance to be determined on the basis of the financial information most recently delivered to the Bank as though such merger or consolidation had been consummated as of the first day of the fiscal period covered thereby; and

(f) the Borrower shall have delivered to the Bank, at least five (5) business days prior to the date on which any such merger or consolidation is to be consummated, a certificate of a officer of the Borrower, in form and substance reasonably satisfactory to the Bank, certifying that all of the requirements set forth in this Section 5.4 have been satisfied or will be satisfied on or prior to the consummation of such merger or consolidation.

ARTICLE 6 -  CONDITIONS FOR DISBURSEMENTS

6.1. Conditions for Closing and First Disbursement.  The Bank shall not be obligated to make the first disbursement of the Loan until the Borrower at its expense shall have fulfilled, to the Bank’s satisfaction, all provisions of this Agreement applicable thereto and shall have delivered all items set forth on Exhibit F attached hereto and the following conditions have been met:

(a) Transaction Documents.  The Loan Documents and the Development Documents shall have been duly executed and, where applicable, delivered to the Bank.  The Deed of Trust and other documents to be placed of record or filed shall have been duly executed and recorded and filed in all appropriate offices and shall constitute a first and prior lien on the Project, subject only to matters approved by the Bank as set forth in the Deed of Trust.

(b) Inspection Report.  If required by Bank, the Construction Consultant shall have delivered a favorable report as to the detail set forth in the Plans, the quality of construction called for by the Plans and the adequacy of the Construction Contract to provide for completion of the Improvements in accordance with the Plans and as to such other matters as the Bank may request.

(c) Loan Fee, Costs and Expenses.  The portion of the Loan Fee payable on the Closing Date and all reimbursable costs and expenses pursuant to the Loan Documents shall have been paid.

(d) No Damage or Taking.  No portion of the Improvements shall have been damaged by fire or other casualty and no condemnation or taking of the Property or the Improvements or any portion thereof shall be pending or threatened.

(e) License and Permits.  All licenses, permits, consents, approvals and authorizations for the construction of the Improvements shall be in full force and effect and no notices of violation or revocation with respect thereto shall have been received.

(f) No Default.  No Event of Default shall have occurred and be continuing hereunder or under any of the other Loan Documents.

6.2. Subsequent Disbursements.  The Bank shall not be obligated to make future disbursements on the Loan (including the final disbursement referred to in Section 6.3) unless the Borrower shall have fulfilled the following conditions:

(a) Preceding Conditions.  All applicable conditions of the preceding Section 6.1 shall continue to be met.

(b) Title Policy Endorsement.  The Bank shall have received an endorsement to the title insurance policy (i) indicating that since the last preceding disbursement of the Loan there has been no change in the state of title and no survey exceptions not theretofore approved by the Bank, (ii) increasing the coverage of the policy by an amount equal to the disbursement then being made, so that the total amount insured equals the total amount of the Loan disbursed by the Bank, and (iii) changing the effective date of the policy to the date of disbursement.

6.3. Final Disbursement.  The Bank shall make the final disbursement of Loan proceeds only upon a fulfillment of the following conditions:

(a) Preceding Conditions.  All applicable conditions of Section 6.1 and 6.2 shall continue to be met.

(b) Title Policy Endorsement.  The Bank shall have received an endorsement to the title insurance policy in a form approved by the Bank, insuring that no encroachments exist over any building, zoning, right-of-way or property boundary lines.

(c) Final Lien Releases.  The Bank shall have received final lien releases from the Contractor and all subcontractors with respect to the work performed in connection with the construction and equipping of the Improvements.

(d) Miscellaneous.  The Borrower and the Guarantor shall provide the Bank with such other information and documentation reasonably requested by the Bank.

6.4. Other Conditions and Procedure for Disbursements.  Subject to the terms and conditions hereof, the Bank shall undertake to disburse the proceeds of the Loan from time to time for payment of construction costs of the Improvements and other development costs, all as described in the Project Budget, as such construction is completed and as the other development costs are incurred as the Bank or its Construction Consultant shall determine.  The Bank’s obligation to make any such disbursement is conditioned upon a request of the Borrower, delivery by the Borrower and the Guarantor and approval by the Bank of the items required pursuant to Sections 6.1, 6.2, and 6.3, satisfaction of all other conditions to disbursements set forth herein, delivery of the items specified below and the performance by each of the Borrower and the Guarantor of all of its covenants, agreements and obligations under this Agreement and the other Loan Documents.

(a) Requisition.  At closing or at least ten (10) business days prior to the date on which the Borrower desires a disbursement, the Borrower shall submit to the Bank (i) a Request for Disbursement in the form of Exhibit D hereto, signed by the Borrower, together with copies of invoices for all costs and expenses reflected in the Request for Disbursement, (ii) a Project Budget showing the total project costs to date, and the allocation of the Equity Contribution and the balance of each category of construction costs; and (iii) copies of invoices for indirect construction costs, the accuracy of which may at the Bank’s option be certified by the Construction Consultant, and such other information and documentation required hereunder.  With the exception of closing, the Bank shall not be required to disburse funds until ten (10) days after the last required item is received.  The Bank shall not be required to disburse funds for any amounts in excess of one hundred percent (100%) of the amount of the acquisition loan refinanced by the Loan up to a maximum of $6,300,000, plus seventy-five percent (75%) of Project Costs incurred.

(b) Timing.  Requests for disbursements shall not be made more often than once a month.  Prior to disbursement of any Loan proceeds for any line item shown on the Project Budget, the Borrower shall have expended, for costs approved by the Bank, sums at least equal to the Equity Contribution, if any for such line item.  Prior to each disbursement, at the Borrower’s expense, the Bank may request that the Construction Consultant inspect the Improvements to verify the accuracy of all other reports, requests or documents submitted by the Borrower.

(c) Lien Waivers.  If requested by the Bank, the Borrower and the Guarantor shall furnish the Bank with a schedule from the Borrower in the form of Exhibit E hereto identifying all contractors or subcontractors who have performed work or furnished materials in connection with the Improvements, together with lien waivers from the Contractor and all subcontractors who have performed work or furnished materials in connection with the Improvements, current through the period covered by such request for funds.

(d) Limitation on Disbursements.  Anything contained in this Agreement to the contrary notwithstanding, it is expressly understood and agreed that the Bank shall not fund any amounts in excess of in excess of one hundred percent (100%) of the amount of the acquisition loan refinanced by the Loan up to a maximum of $6,300,000, plus seventy-five percent (75%) of Project Costs incurred.  If the Bank or the Construction Consultant determine in its sole discretion that the Bank has funded more than one hundred percent (100%) of the amount of the acquisition loan refinanced by the Loan up to a maximum of $6,300,000, plus seventy-five percent (75%) of Project Costs incurred, the Borrower shall, within ten (10) days after written request by the Bank, deposit the amount by which the total aggregate amount of all previous disbursements exceeds one hundred percent (100%) of the amount of the acquisition loan refinanced by the Loan up to a maximum of $6,300,000, plus seventy-five percent (75%) of Project Costs incurred with the Bank, which deposit shall first be exhausted before any further disbursement of the Loan proceeds is made.  The Bank shall not be obligated to make any Loan disbursements in excess of one hundred percent (100%) of the amount of the acquisition loan refinanced by the Loan up to a maximum of $6,300,000, plus seventy-five percent (75%) of Project Costs.  Whenever the Bank has any such deficiency funds on deposit, such funds, together with any interest thereon, shall be additional security for the Loan and the Borrower hereby grants the Bank a security interest in such funds.

(e) Material Damage.  Notwithstanding any provision of this Agreement to the contrary, if the Property shall have suffered any material damage or destruction prior to any disbursement, such damaged or destroyed portion shall be restored or replaced in a manner acceptable to the Bank without cost to the Bank prior to any further disbursement from the Bank.

(f) Mechanics’ Liens.  In the event of the filing of any mechanics’ or materialmen’s lien, the Borrower and the Guarantor shall within ten (10) days after the filing thereof, or if earlier, prior to the next disbursement of Loan proceeds, cause such lien to be removed by bonding or otherwise, or insured over by the title company to the Bank’s satisfaction.

(g) Other Disbursement Contingencies.  The Bank shall not be obligated to make any disbursement hereunder or to take any action hereunder or under the Loan Documents if, on the date of a proposed disbursement or the date of a proposed action, (i) the Borrower is in default of its obligations hereunder or under any of the Loan Documents, or an event has occurred which with the passage of time or the giving of notice or both would constitute an Event of Default hereunder or thereunder, or (ii) any representation or warranty made by the Borrower herein or in any of the other Loan Documents proves to be untrue in any material respect.

(h) Payment.  The Bank may, at its option, make disbursements (i) to the operating account of the Borrower opened with the Bank, or (ii) directly to persons furnishing labor or material to the Project.

(i) Access to Property; Right to Stop Work; Correction of Defective Work.  Guarantor will allow the Bank, through the Construction Consultant and the Bank’s officers, agents, or employees, at all reasonable times and upon reasonable notice, the right of entry and access to the Property (subject to Guarantor’s reasonable safety policies and procedures) and the right to inspect all work done, labor performed and materials furnished or to be furnished in furtherance of the Improvements.  If the Bank determines that any work or material does not comply with the Plans or sound building practice or otherwise departs from the requirements of this Agreement or the Construction Contract, then the Bank may require the work to be stopped and may withhold disbursements until the matter is corrected to the Bank’s satisfaction.  The Bank shall also have the right to require that the work be stopped upon the occurrence of an Event of Default or event which with notice, the lapse of time or both would constitute an Event of Default.  If the Project shall require, in the Bank’s reasonable judgment, the written consent of any person or entity as to any aspect of the construction of the Improvements, the Bank may require the work to be stopped and may withhold further disbursements of the Loan until all such written consents, in writing shall have been delivered to the Bank.  The Borrower and the Guarantor shall promptly correct any non-conforming work or materials.  Unless otherwise agreed by the Bank, the Borrower and the Guarantor, no such action by the Bank will affect the Borrower’s and the Guarantor’s obligation to complete the Improvements on or before the Completion Date.  The Bank shall be under no duty to examine, supervise or inspect the Plans or the construction of the Improvements.  Any inspection or examination by the Bank or the Construction Consultant is for the sole purpose of protecting the Bank’s liens and security interests and preserving its rights hereunder.  No default or breach of the Borrower or Guarantor will be waived by any inspection by the Bank, nor shall any such inspections constitute a representation that there has been or will be compliance with the Plans or that the construction is free from defective materials or workmanship.  The Construction Consultant’s services are for the sole benefit of the Bank and the Bank shall not be liable in any manner for the results of such inspection.

(j) Indemnification.  The Borrower hereby agrees to defend, indemnify, protect and hold harmless the Bank and its affiliates, directors, officers, employees, agents, successors and assigns, from and against any and all claims, losses, damages, liabilities, costs and expenses (including reasonable attorney’s fees and claims arising out of the loss of life, injury to persons, property or business) in connection with any construction, demolition or renovation activities of the Borrower or the Guarantor, including the construction of the Improvements, the making of the Loan pursuant to the terms and conditions of this Agreement or the Loan Documents, except to the extent that the foregoing claims, losses, damages, liabilities, costs and expenses arise from the gross negligence or intentional misconduct of the Bank and its affiliates, directors, officers, employees, agents, successors or assigns.

ARTICLE 7  -  DEFAULTS AND REMEDIES

7.1. Events of Default.  The occurrence of one or more of the following events shall constitute an Event of Default hereunder:

(a) The Borrower or the Guarantor shall fail to comply with any covenant contained in this Agreement or any of the other Loan Documents which calls for the payment of money within seven (7) days after such payment is due.

(b) If the construction of the Improvements is not carried on with reasonable dispatch in accordance with the Plans in the Bank’s reasonable judgment, or if construction of the Improvements is abandoned for twenty (20) consecutive days or is not substantially completed in all material respects on or prior to the Completion Date.

(c) If the Borrower or the Guarantor fails to keep, observe or perform any of the other material undertakings, conditions, stipulations, agreements, covenants or obligations of the Borrower or the Guarantor as set forth in this Agreement, which do not have a specified grace or cure period, and continuance of such failure for twenty (20) days after the earlier of written notice from the Bank to the Borrower or the Borrower has knowledge that such failure has occurred.

(d) If any of the representations or warranties made by the Borrower or the Guarantor under this Agreement or under any of the other Loan Documents shall be untrue in any material respect when made.

(e) If any Event of Default or General Default (after the lapse of the applicable cure period) shall occur under any of the Loan Documents or under any other instruments relating thereto delivered by the Borrower or the Guarantor to the Bank under this Agreement.

Notwithstanding the foregoing, if any default or failure to observe or perform any covenant or other agreement hereunder or under the Loan Documents occurs (a "General Default"), such General Default is curable, and no specific cure period otherwise applies to such General Default, the General Default may be cured if the Borrower, after receiving written notice from the Bank demanding cure of such General Default cures the General Default within twenty (20) days.

7.2. Remedies.  Upon the occurrence of any one or more of the Events of Default, at the Bank’s option and following the lapse or expiration of any applicable cure period, all obligations on the Bank’s part to make the Loan, or to make any further disbursements hereunder shall cease and terminate, and the Loan and all sums then or thereafter due under any and all of the Loan Documents shall thereupon become immediately due and payable.  Upon the occurrence of an Event of Default, the Bank may enforce any or all of its rights hereunder or under any other Loan Documents, or at law or in equity, and in addition, the Bank, at its option, may apply any or all funds not previously disbursed to the payment of outstanding invoices and to the completion of the Improvements, with the right and power in such event to enter upon and take possession of the Property, to make such changes in the Plans or the Development Documents as may seem desirable, and to do all things reasonably necessary in the Bank’s opinion to complete or partially complete the Improvements.  The Borrower irrevocably appoints the Bank as its attorney-in-fact, with full power of substitution, to complete the Improvements in the Borrower’s name or the Guarantor’s name or the Bank may elect to complete construction in the Bank’s name.

ARTICLE 8  -  MISCELLANEOUS

8.1. Notices.   All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (the "Notices") must be in writing and will be effective upon receipt.   Notices may be given in any manner to which the parties may separately agree, including electronic mail.  Without limiting the foregoing, first-class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving the Notices.  Regardless of the manner in which provided, the Notices may be sent to a party’s address set forth below or to such other address as any party may give to the other for such purpose in accordance with this Section:

To the Bank:                                   PNC Bank, National Association

800 17th Street, N.W.

Washington, DC   20006

Attention:Douglas T. Brown, Senior Vice President CorporateBanking - Government Contracting

Facsimile No.:     (202) 835-5977

Telephone No.:  (202) 835-4992

To the Borrower and

the Guarantor:                               Emergent BioSolutions Inc.

Emergent Manufacturing Operations Baltimore LLC

2273 Research Boulevard, Suite 400

Rockville, Maryland 20850

Attention: General Counsel

Facsimile No.:     (301) 795-1899

Telephone No.:  (301) 795-1800

8.2. Preservation of Rights.  No delay or omission on the Bank’s part to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right or power.  The Bank’s rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which the Bank may have under other agreements, at law or in equity.

8.3. Illegality.  If any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, it shall not affect or impair the validity, legality and enforceability of the remaining provisions of this Agreement.

8.4. Changes in Writing.  No modification, amendment or waiver of, or consent to any departure by the Borrower or the Guarantor from, any provision of this Agreement will be effective unless made in a writing signed by the Bank, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice to or demand on the Borrower or the Guarantor will entitle the Borrower or the Guarantor to any other or further notice or demand in the same, similar or other circumstance.

8.5. Entire Agreement.  This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

8.6. Counterparts.  This Agreement may be signed in any number of counterpart copies and by the parties hereto on separate counterparts, but all such copies shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart.  Any party so executing this Agreement by facsimile transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile transmission.

8.7. Successors and Assigns.  This Agreement will be binding upon and inure to the benefit of the Borrower and the Guarantor and the Bank and their respective heirs, executors, administrators, successors and assigns; provided, however, that the Borrower and the Guarantor may not assign this Agreement in whole or in part without the Bank’s prior written consent and the Bank at any time may assign this Agreement in whole or in part.

8.8. Interpretation.  In this Agreement, unless the Bank, the Borrower and the Guarantor otherwise agree in writing, the singular includes the plural and the plural the singular; words importing any gender include the other genders; references to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute referred to; the word “or” shall be deemed to include “and/or”, the words “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”; references to articles, sections (or subdivisions of sections) or exhibits are to those of this Agreement unless otherwise indicated; and references to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications to such instruments, but only to the extent such amendments and other modifications are not prohibited by the terms of this Agreement.  Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.  Unless otherwise specified in this Agreement, all accounting terms shall be interpreted and all accounting determinations shall be made in accordance with GAAP.  If this Agreement is executed by more than one party as the Borrower or the Guarantor, the obligations of such persons or entities will be joint and several.

8.9. Certain Waivers.  The Borrower and the Guarantor hereby relieve and discharge the Bank from any and all liability and responsibility whatsoever arising out of the disbursement of Loan proceeds hereunder and agrees and acknowledges that the Bank does not assume any responsibility whatsoever for the method of disbursement, the application or use of Loan proceeds disbursed hereunder or as to any liens or claims whatsoever which might attach to or be filed against the Property.

8.10. Indemnity.  The Borrower and the Guarantor agree to indemnify each of the Bank, each legal entity, if any, who controls the Bank and each of their respective directors, officers and employees (the “Indemnified Parties”), and to hold each Indemnified Party harmless from and against, any and all claims, damages, losses, liabilities and expenses (including all reasonable fees and charges of internal or external counsel with whom any Indemnified Party may consult and all third party expenses of litigation and preparation therefor) which any Indemnified Party may incur, or which may be asserted against any Indemnified Party by any person, entity or governmental authority (including any person or entity claiming derivatively on behalf of the Borrower or the Guarantor), in connection with or arising out of or relating to the matters referred to in this Agreement or in the other Loan Documents or the use of the proceeds of the Loan, whether (a) arising from or incurred in connection with any breach of a representation, warranty or covenant by the Borrower or the Guarantor, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before any court or governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified Party’s gross negligence,  willful misconduct or material breach of this Agreement.  The indemnity agreement contained in this Section shall survive the termination of this Agreement, payment of any Loan and assignment of any rights hereunder.  The Borrower and the Guarantor may participate at their expense in the defense of any such action or claim, and the Bank shall not stipulate to or enter into any judgment that results in an admission of fault by the Borrower or the Guarantor without the Borrower’s express written consent.

8.11. Assignments and Participations.  At any time, without any notice to the Borrower or the Guarantor, the Bank may sell, assign, transfer, negotiate, grant participations in, or otherwise dispose of all or any part of the Bank’s interest in the Loan.  The Borrower and the Guarantor hereby authorize the Bank to provide, without any notice to the Borrower and the Guarantor, any information concerning the Borrower and the Guarantor, including information pertaining to the Borrower’s and the Guarantor’s financial condition, business operations or general creditworthiness, to any person or entity which may succeed to or participate in all or any part of the Bank’s interest in the Loan.

8.12. Governing Law and Jurisdiction.  This Agreement has been delivered to and accepted by the Bank and will be deemed to be made in the State of Maryland.  This Agreement will be interpreted and the rights and liabilities of the parties hereto determined in accordance with the laws of the State of Maryland, excluding its conflict of laws rules.  The Borrower and the Guarantor hereby irrevocably consent to the exclusive jurisdiction of any state or federal court in any county or judicial district in the State of Maryland; provided that nothing contained in this Agreement will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security or against any property of the Borrower or the Guarantor within any other county, state or other foreign or domestic jurisdiction.  The Bank, the Borrower and the Guarantor agree that the venue provided above is the most convenient forum for the Bank, the Borrower and the Guarantor.  The Borrower and the Guarantor waive any objection to venue and any objection based on a more convenient forum in any action instituted under this Agreement.

8.13. WAIVER OF JURY TRIAL.  EACH OF THE BORROWER, THE GUARANTOR AND THE BANK IRREVOCABLY WAIVE ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS AGREEMENT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS.  EACH OF THE BORROWER, THE GUARANTOR AND THE BANK ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

The Borrower and the Guarantor each acknowledge that it has read and understood all the provisions of this Agreement, including the waiver of jury trial, and has been advised by counsel as necessary or appropriate.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

--

  

  

  

WITNESS the due execution hereof as a document under seal, as of the date first written above.

BORROWER:

WITNESS / ATTEST:                                                                           EMERGENT BIOSOLUTIONS INC.

/s/ Lisa Richardson                                                             By:  /s/ R. Don Elsey                                                           (SEAL)

Print Name:  Lisa Richardson                                                                  Print name:  R. D. Elsey 

Title:  Senior Director, Treasury                                                             Title:  CFO 

(Include title only if an officer of entity signing to the right)

GUARANTOR:

WITNESS / ATTEST:                                                                           EMERGENT MANUFACTURING

OPERATIONS BALTIMORE LLC

/s/ Lisa Richardson                                                             By: /s/ R. Don Elsey                                                           (SEAL)

Print Name:  Lisa Richardson                                                                  Print Name:  R. D. Elsey 

Title:  Senior Director, Treasury                                                             Title:  CFO 

(Include title only if an officer of entity signing to the right)

BANK:

PNC BANK, NATIONAL ASSOCIATION

By:  /s/ Douglas T. Brown                                                           (SEAL)

Print Name:  Douglas T. Brown                                                                          

Title:  SVP                                                                          

 

[Signature Page to Construction Loan Agreement]

--

  

  

  

 

	
  

	
EXHIBIT C

Financial Requirements

	
  

	
FINANCIAL COVENANTS:

	
(a)

	
The Consolidated Group will maintain at all times a minimum of unencumbered cash and liquid investments of $50,000,000.00, which the Borrower shall certify at the end of each fiscal quarter.

	
  

	
(b)

	
The Consolidated Group will maintain as of the end of each fiscal quarter, on a rolling four quarters basis, a ratio of Funded Debt to EBITDA of less than 2.00 to 1.00.

	
  

	
(c)

	
The Consolidated Group will maintain as of the end of each fiscal quarter, on a rolling four quarters basis, a Debt Service Coverage Ratio of at least 1.25 to 1.00.

	
  

	
As used herein:

	
  

	
“Current Maturities and Interest Expense” means the current obligations and interest expense on Funded Debt.

	
  

	
“Debt Service Coverage Ratio” means the ratio of (i) EBITDA minus cash taxes of the Consolidated Group to (ii) the total of Current Maturities of the Consolidated Group plus interest expense.

	
  

	
“EBITDA” means net income attributable to the Borrower without duplication and to the extent reflected as a charge in the statement of net income attributable to the Borrower for such period, the sum of interest expense, income tax expense, depreciation, amortization and any extraordinary or non-recurring non-cash expenses attributed to minority positions in joint ventures.

	
  

	
“Funded Debt” means all indebtedness for borrowed money, including but not limited to capitalized lease obligations, reimbursement obligations in respect of letters of credit, and guarantees of any such indebtedness including Subordinated Debt.

“Subordinated Debt” means indebtedness that has been subordinated to the Borrower’s indebtedness to the Bank pursuant to a subordination agreement in form and content satisfactory to the Bank.

	
  

	
NEGATIVE COVENANTS:

	
  

	
(a)

	
The Consolidated Group shall not create, incur, guarantee, endorse (except endorsements in the course of collection), assume or suffer to exist any indebtedness, except (i) indebtedness to the Bank, (ii) open account trade debt incurred in the ordinary course of business and not past due, (iii) convertible debt or convertible debentures whether standalone or under a shelf registration, or (iv) other indebtedness disclosed on the Borrower’s latest financial statements which have been provided to the Bank prior to the date of this Agreement, except for indebtedness created, incurred, guaranteed, endorsed or assumed in connection with a merger or consolidation permitted pursuant to Section 5.4, so long as (1) such indebtedness does not exceed $100,000,000 in the aggregate, and (2) if such indebtedness exceeds $30,000,000 per transaction, such indebtedness does not cause the Consolidated Group not to be in pro forma compliance with the Financial Covenants set forth herein immediately after giving effect to such merger or consolidation.

	
  

	
(b)

	
The Borrower shall not declare or pay any dividends on or make any distribution with respect to any class of its equity, or purchase, redeem, retire or otherwise acquire any of its equity.

	
  

	
(c)

	
The Guarantor will not make or have outstanding any loans or advances to or otherwise extend credit to any person, firm or corporation, except in the ordinary course of business.  The Consolidated Group will not make or have outstanding any loans or advances to or otherwise extend credit to any person, firm or corporation in excess of $50,000,000, except for (1) sale-leaseback transactions, (2) contingent value rights, or (3) note receivables related to a deferred purchase price.

C - 

  

  

  

EXHIBIT F

Conditions for Closing

1.           Title and Collateral Matters:

	
  

	
(a)

	
Survey.  A current survey of the Property and legal description thereof, certified by a registered surveyor approved by the Bank, such certification to be addressed to the Bank and the title company issuing the Bank’s title insurance policy and shall be in form and substance acceptable to the Bank.

	
  

	
(b)

	
Permits and Approvals.  Evidence in such form as the Bank may require of the valid issuance of all necessary permits, licenses and approvals (including, without limitation, subdivision and zoning approvals) to construct and, to the extent generally available at such stage, to occupy and operate the improvements.

	
  

	
(c)

	
Utilities.  Evidence in such form as the Bank may require showing the availability of all utility and municipal services required for the operation of the improvements.

	
  

	
(d)

	
Title Insurance Policy.  A lender’s title policy in form and substance acceptable to the Bank and issued by a title insurer acceptable to the Bank.

2.           Construction Matters:

	
  

	
(a)

	
Construction Contract.  A signed copy of the Construction Contract with the Contractor pursuant to which the Improvements will be constructed by the Contractor, which Construction Contract shall be subject to review and approval by the Bank.

	
  

	
(b)

	
Budget.  A project budget approved by the Bank and/or its Construction Consultant, to be certified by the Borrower as of the Closing Date, to be true, correct and complete and in form, scope and content acceptable to the Bank.exhibit10-2.htm

EXHIBIT 10.2

Promissory Note

(Multi-Rate Options)

$30,000,000.00                                                                                                                                July 28, 2011

FOR VALUE RECEIVED, EMERGENT BIOSOLUTIONS INC., a Delaware corporation (the “Borrower”), with an address at 2273 Research Boulevard, Suite 400, Rockville, Maryland 20850, promises to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the “Bank”), in lawful money of the United States of America in immediately available funds at its offices located at 800 17th Street, N.W., Washington, DC 20006, or at such other location as the Bank may designate from time to time, the principal sum of THIRTY MILLION AND NO/100 DOLLARS ($30,000,000.00) (the “Facility”), or so much thereof as shall have been advanced under that certain Construction Loan Agreement of even date herewith, between the Borrower and the Bank (as amended, modified or renewed from time to time, the “Agreement”) together with interest accruing from the date of initial advance on the outstanding principal balance hereof, as provided below:

1. Advances.  This is a committed line of credit pursuant to which the Borrower may borrow, repay and reborrow, and the Bank, subject to the terms and conditions of this Note and the Loan Documents (as hereinafter defined), will make advances to the Borrower until the Expiration Date.  The “Expiration Date” shall mean July 28, 2012, or such later date as may be designated by the Bank by written notice from the Bank to the Borrower.  The Borrower acknowledges and agrees that in no event will the Bank be under any obligation to extend or renew the Facility or this Note beyond the Expiration Date.  The Borrower may request advances hereunder upon giving oral or written notice to the Bank by 11:00 a.m. (Pittsburgh, Pennsylvania time) (a) on the day of the proposed advance, in the case of advances to bear interest under the Base Rate Option (as hereinafter defined) and (b) three (3) Business Days prior to the proposed advance, in the case of advances to bear interest under the LIBOR Option (as hereinafter defined), followed promptly thereafter by the Borrower written confirmation to the Bank of any oral notice.  The aggregate unpaid principal amount of advances under this Note shall not exceed the face amount of this Note.

2. Rate of Interest.  Each advance outstanding under this Note will bear interest at a rate or rates per annum as may be selected by the Borrower from the interest rate options set forth below (each, an “Option”):

(i) Base Rate Option.  A rate of interest per annum which is at all times equal to (A) the Base Rate plus (B) fifty (50) basis points (0.50%).  If and when the Base Rate (or any component thereof) changes, the rate of interest with respect to any advance to which the Base Rate Option applies will change automatically without notice to the Borrower, effective on the date of any such change.  There are no required minimum interest periods for advances bearing interest under the Base Rate Option.

(ii) LIBOR Option.  A rate per annum equal to (A) LIBOR for the applicable LIBOR Interest Period plus (B) three hundred (300) basis points (3.00%).

For purposes hereof, the following terms shall have the following meanings:

“Base Rate” shall mean the highest of (A) the Prime Rate, and (B) the sum of the Federal Funds Open Rate plus fifty (50) basis points (0.50%), and (C) the sum of the Daily LIBOR Rate plus one hundred (100) basis points (1.00%), so long as a Daily LIBOR Rate is offered, ascertainable and not unlawful.

“Business Day” shall mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required by law to be closed for business in Pittsburgh, Pennsylvania.

“Daily LIBOR Rate” shall mean, for any day, the rate per annum determined by the Bank by dividing (x) the Published Rate by (y) a number equal to 1.00 minus the LIBOR Reserve Percentage.

“Federal Funds Open Rate” shall mean, for any day, the rate per annum (based on a year of 360 days and actual days elapsed) which is the daily federal funds open rate as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day opposite the caption “OPEN” (or on such other substitute Bloomberg Screen that displays such rate), or as set forth on such other recognized electronic source used for the purpose of displaying such rate as selected by the Bank (an “Alternate Source”) (or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source, or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate Source, a comparable replacement rate determined by the Bank at such time (which determination shall be conclusive absent manifest error); provided however, that if such day is not a Business Day, the Federal Funds Open Rate for such day shall be the “open” rate on the immediately preceding Business Day.  The rate of interest charged shall be adjusted as of each Business Day based on changes in the Federal Funds Open Rate without notice to the Borrower.

“LIBOR” shall mean, with respect to any advance to which the LIBOR Option applies for the applicable LIBOR Interest Period, the interest rate per annum determined by the Bank by dividing (the resulting quotient rounded upwards, at the Bank’s discretion, to the nearest 1/100th of 1%) (i) the rate of interest determined by the Bank in accordance with its usual procedures (which determination shall be conclusive absent manifest error) to be the eurodollar rate two (2) Business Days prior to the first day of such LIBOR Interest Period for an amount comparable to such advance and having a borrowing date and a maturity comparable to such LIBOR Interest Period by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage.

“LIBOR Interest Period” shall mean, as to any advance to which the LIBOR Option applies, the period of one (1), two (2), three (3) or six (6) month/months as selected by the Borrower in its notice of borrowing or notice of conversion, as the case may be, commencing on the date of disbursement of an advance (or the date of conversion of an advance to the LIBOR Option, as the case may be) and each successive period selected by the Borrower thereafter; provided that, (i) if a LIBOR Interest Period would end on a day which is not a Business Day, it shall end on the next succeeding Business Day unless such day falls in the next succeeding calendar month in which case the LIBOR Interest Period shall end on the next preceding Business Day, (ii) the Borrower may not select a LIBOR Interest Period that would end on a day after the Expiration Date, and (iii) any LIBOR Interest Period that begins on the last Business Day of a calendar month (or a day for which there is no numerically corresponding day in the last calendar month of such LIBOR Interest Period) shall end on the last Business Day of the last calendar month of such LIBOR Interest Period.

“LIBOR Reserve Percentage” shall mean the maximum effective per­centage in effect on such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including, without limitation, supplemental, marginal and emergen­cy reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency liabilities”).

“Prime Rate” shall mean the rate publicly announced by the Bank from time to time as its prime rate.  The Prime Rate is determined from time to time by the Bank as a means of pricing some loans to its borrowers.  The Prime Rate is not tied to any external rate of interest or index, and does not necessarily reflect the lowest rate of interest actually charged by the Bank to any particular class or category of customers.

“Published Rate” shall mean the rate of interest published each Business Day in the Wall Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period (or, if no such rate is published therein for any reason, then the Published Rate shall be the eurodollar rate for a one month period as published in another publication selected by the Bank).

LIBOR and the Daily LIBOR Rate shall be adjusted with respect to any advance to which the LIBOR Option or Base Rate Option applies, as applicable, on and as of the effective date of any change in the LIBOR Reserve Percentage.  The Bank shall give prompt notice to the Borrower of LIBOR or the Daily LIBOR Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error.

If the Bank determines (which determination shall be final and conclusive) that, by reason of circumstances affecting the eurodollar market generally, deposits in dollars (in the applicable amounts) are not being offered to banks in the eurodollar market for the selected term, or adequate means do not exist for ascertaining LIBOR, then the Bank shall give notice thereof to the Borrower.  Thereafter, until the Bank notifies the Borrower that the circumstances giving rise to such suspension no longer exist, (a) the availability of the LIBOR Option shall be suspended and (b) the interest rate for all advances then bearing interest under the LIBOR Option shall be converted at the expiration of the then current LIBOR Interest Period(s) to the Base Rate Option.

In addition, if, after the date of this Note, the Bank shall determine (which determination shall be final and conclusive) that any enactment, promulgation or adoption of or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by a governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any guideline, request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency shall make it unlawful or impossible for the Bank to make or maintain or fund loans based on LIBOR, the Bank shall notify the Borrower.  Upon receipt of such notice, until the Bank notifies the Borrower that the circumstances giving rise to such determination no longer apply, (a) the availability of the LIBOR Option shall be suspended and (b) the interest rate on all advances then bearing interest under the LIBOR Option shall be converted to the Base Rate Option either (i) on the last day of the then current LIBOR Interest Period(s) if the Bank may lawfully continue to maintain advances based on LIBOR to such day, or (ii) immediately if the Bank may not lawfully continue to maintain advances based on LIBOR.

The foregoing notwithstanding, it is understood that the Borrower may select different Options to apply simultaneously to different portions of the advances and may select up to up to six (6) different interest periods to apply simultaneously to different portions of the advances bearing interest under the LIBOR Option; provided that, for the purpose of determining the number of interest periods, advances bearing interest at the Base Rate Option shall be deemed to constitute an interest period.  For example, if a portion of the advances is bearing interest at the Base Rate Option, then the Borrower would be able to select up to five (5) different interest periods to apply with respect to the LIBOR Option.  Interest hereunder will be calculated based on the actual number of days that principal is outstanding over a year of 360 days.  In no event will the rate of interest hereunder exceed the maximum rate allowed by law.

 

3. Interest Rate Election.  Subject to the terms and conditions of this Note, at the end of each interest period applicable to any advance, the Borrower may renew the Option applicable to such advance or convert such advance to a different Option; provided that, during any period in which any Event of Default (as hereinafter defined) has occurred and is continuing, any advances bearing interest under the LIBOR Option shall, at the Bank’s sole discretion, be converted at the end of the applicable LIBOR Interest Period to the Base Rate Option, and the LIBOR Option will not be available to the Borrower with respect to any new advances (or with respect to the conversion or renewal of any existing advances) until such Event of Default has been cured by the Borrower or waived by the Bank.  The Borrower shall notify the Bank of each election of an Option, each conversion from one Option to another, the amount of the advances then outstanding to be allocated to each Option and where relevant the interest periods therefor.  In the case of converting to the LIBOR Option, such notice shall be given at least three (3) Business Days prior to the commencement of any LIBOR Interest Period.  If no interest period is specified in any such notice for which the resulting advance is to bear interest under the LIBOR Option, the Borrower shall be deemed to have selected a LIBOR Interest Period of one month’s duration.  If no notice of election, conversion or renewal is timely received by the Bank with respect to any advance, the Borrower shall be deemed to have elected the Base Rate Option.  Any such election shall be promptly confirmed in writing by such method as the Bank may require.

4. Advance Procedures.  A request for advance made by telephone must be promptly confirmed in writing by such method as the Bank may require.  The Borrower authorizes the Bank to accept telephonic requests for advances, and the Bank shall be entitled to rely upon the authority of any person providing such instructions.  The Borrower hereby indemnifies and holds the Bank harmless from and against any and all damages, losses, liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) which may arise or be created by the acceptance of such telephone requests or making such advances except to the extent such damages, losses, liabilities, costs and expenses arise from the Bank’s intentional misconduct or grossly negligent act or omission.  The Bank will enter on its books and records, which entry when made will be presumed correct, the date and amount of each advance, the interest rate and interest period applicable thereto, as well as the date and amount of each payment.

 

5. Payment Terms.  Prior to the Expiration Date, monthly payments of interest only will be due and payable commencing on August 28, 2011.  From and after the Expiration Date until July 28, 2017, in addition to monthly payments of interest, monthly payments of principal in an amount sufficient to amortize the outstanding principal balance of this Note as of the Completion Date over a term of twenty (20) years shall be due and payable on the first day of each calendar month.  Any outstanding principal and accrued interest shall be due and payable in full on July 28, 2017 (the “Maturity Date”).

 

If any payment under this Note shall become due on a Saturday, Sunday or public holiday under the laws of the State where the Bank’s office indicated above is located, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in computing interest in connection with such payment.  The Borrower hereby authorizes the Bank to charge the Borrower’s deposit account at the Bank for any payment when due hereunder.  Payments received will be applied to charges, fees and expenses (including attorneys’ fees), accrued interest and principal in any order the Bank may choose, in its sole discretion.

6. Late Payments; Default Rate.  If the Borrower fails to make any payment of principal, interest or other amount coming due pursuant to the provisions of this Note within fifteen (15) calendar days of the date due and payable, the Borrower also shall pay to the Bank a late charge equal to the greater of five percent (5%) of the amount of such payment or $100.00 (the “Late Charge”).  Such fifteen (15) day period shall not be construed in any way to extend the due date of any such payment.  Upon maturity, whether by acceleration, demand or otherwise, and at the Bank’s option upon the occurrence of any Event of Default (as hereinafter defined) and during the continuance thereof, each advance outstanding under this Note shall bear interest at a rate per annum (based on the actual number of days that principal is outstanding over a year of 360 days) which shall be three percentage points (3%) in excess of the interest rate in effect from time to time under this Note but not more than the maximum rate allowed by law (the “Default Rate”).  The Default Rate shall continue to apply whether or not judgment shall be entered on this Note.  Both the Late Charge and the Default Rate are imposed as liquidated damages for the purpose of defraying the Bank’s expenses incident to the handling of delinquent payments, but are in addition to, and not in lieu of, the Bank’s exercise of any rights and remedies hereunder, under the other Loan Documents or under applicable law, and any fees and expenses of any agents or attorneys which the Bank may employ.  In addition, the Default Rate reflects the increased credit risk to the Bank of carrying a loan that is in default.  The Borrower agrees that the Late Charge and Default Rate are reasonable forecasts of just compensation for anticipated and actual harm incurred by the Bank, and that the actual harm incurred by the Bank cannot be estimated with certainty and without difficulty.

7. Prepayment.  The Borrower shall have the right to prepay any advance hereunder at any time and from time to time, in whole or in part; subject, however, to payment of any break funding indemnification amounts owing pursuant to paragraph 8 below.

8. Yield Protection; Break Funding Indemnification.  The Borrower shall pay to the Bank on written demand therefor, together with the written evidence of the justification therefor, all direct costs incurred, losses suffered or payments made by Bank by reason of any change in law or regulation or its interpretation imposing any reserve, deposit, allocation of capital, or similar requirement (including without limitation, Regulation D of the Board of Governors of the Federal Reserve System) on the Bank, its holding company or any of their respective assets.  In addition, the Borrower agrees to indemnify the Bank against any liabilities, losses or expenses (including, without limitation, loss of margin, any loss or expense sustained or incurred in liquidating or employing deposits from third parties, and any loss or expense incurred in connection with funds acquired to effect, fund or maintain any advance (or any part thereof) bearing interest under the LIBOR Option) which the Bank sustains or incurs as a consequence of either (i) the Borrower’s failure to make a payment on the due date thereof in connection with any amounts bearing interest under the LIBOR Option, (ii) the Borrower’s revocation (expressly, by later inconsistent notices or otherwise) in whole or in part of any notice given to Bank to request, convert, renew or prepay any advance bearing interest under the LIBOR Option, or (iii) the Borrower’s payment or prepayment (whether voluntary, after acceleration of the maturity of this Note or otherwise) or conversion of any advance bearing interest under the LIBOR Option on a day other than the last day of the applicable LIBOR Interest Period.  A notice as to any amounts payable pursuant to this paragraph given to the Borrower by the Bank shall, in the absence of manifest error, be conclusive and shall be payable upon demand.  The Borrower’s indemnification obligations hereunder shall survive the payment in full of the advances and all other amounts payable hereunder.

9. Other Loan Documents.  This Note is issued in connection with loan agreement between the Borrower and the Bank dated on or before the date hereof, and the other agreements and documents executed in connection therewith or referred to therein, the terms of which are incorporated herein by reference (as amended, modified or renewed from time to time, collectively the "Loan Documents"), and is secured by the property described in the Loan Documents (if any) and by such other collateral as previously may have been or may in the future be granted to the Bank to secure this Note.

10. Events of Default.  The occurrence of any of the following events will be deemed to be an “Event of Default” under this Note:  (i) the nonpayment of any principal, interest or other indebtedness under this Note within seven (7) days of when due; (ii) the occurrence of any event of default or any default and the lapse of any notice or cure period under or contained in any Loan Document or any other document now or in the future evidencing or securing any debt, liability or obligation of any Obligor to the Bank; (iii) the filing by or against any Obligor of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against any Obligor, such proceeding is not dismissed or stayed within 30 days of the commencement thereof, provided that the Bank shall not be obligated to advance additional funds hereunder during such period); (iv) any assignment by any Obligor for the benefit of creditors, or any levy, garnishment, attachment or similar proceeding is instituted against any property of any Obligor held by or deposited with the Bank; (v) a default with respect to any other indebtedness of any Obligor for borrowed money in excess of $10,000,000, if the effect of such default is to cause or permit the acceleration of such debt; (vi) the commencement of any foreclosure or forfeiture proceeding, execution or attachment against any collateral securing the obligations of any Obligor to the Bank; (vii) the entry of a final judgment for the payment of money in excess of $10,000,000 against any Obligor and the failure of such Obligor to discharge the judgment within ten (10) days of the entry thereof; (viii) any material adverse change in business, assets, operations, financial condition or results of operations of the Consolidated Group; (ix) any Obligor ceases doing business as a going concern; (x) any representation or warranty made by any Obligor to the Bank in any Loan Document or any other documents now or in the future evidencing or securing the obligations of any Obligor to the Bank, is false, erroneous or misleading in any material respect; or (xi) the wrongful revocation or attempted revocation, in whole or in part, of any guarantee by any Obligor.  As used herein, the term “Obligor” means any Borrower and any guarantor of, or any pledgor, mortgagor or other person or entity providing collateral support for, the Borrower’s obligations to the Bank existing on the date of this Note or arising in the future.  As used herein, the “Consolidated Group” means the Borrower and all of its subsidiary and affiliate entities on a consolidated basis.

Notwithstanding the foregoing, if any default or failure to observe or perform any covenant or other agreement hereunder or under the Loan Documents occurs (a "General Default"), such General Default is curable, and no specific cure period otherwise applies to such General Default, the General Default may be cured if the Borrower, after receiving written notice from the Bank demanding cure of such General Default cures the General Default within twenty (20) days.

Upon the occurrence of an Event of Default:  (a) the Bank shall be under no further obligation to make advances hereunder; (b) if an Event of Default specified in clause (iii) or (iv) above shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder shall be immediately due and payable without demand or notice of any kind; (c) if any other Event of Default shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder, at the Bank’s option and without demand or notice of any kind, may be accelerated and become immediately due and payable; (d) at the Bank’s option, this Note will bear interest at the Default Rate from the date of the occurrence of the Event of Default; and (e) the Bank may exercise from time to time any of the rights and remedies available under the Loan Documents or under applicable law.

11. Right of Setoff.  In addition to all liens upon and rights of setoff against the Borrower’s money, securities or other property given to the Bank by law, the Bank shall have, with respect to the Borrower’s obligations to the Bank under this Note and to the extent permitted by law, a contractual possessory security interest in and a contractual right of setoff against, and the Borrower hereby assigns, conveys, delivers, pledges and transfers to the Bank all of the Borrower’s right, title and interest in and to, all of the Borrower’s deposits, moneys, securities and other property now or hereafter in the possession of or on deposit with, or in transit to, the Bank or any other direct or indirect subsidiary of The PNC Financial Services Group, Inc., whether held in a general or special account or deposit, whether held jointly with someone else, or whether held for safekeeping or otherwise, excluding, however, all IRA, Keogh, and trust accounts.  Every such security interest and right of setoff may be exercised without demand upon or notice to the Borrower.  Every such right of setoff shall be deemed to have been exercised immediately upon the occurrence of an Event of Default hereunder without any action of the Bank, although the Bank may enter such setoff on its books and records at a later time.

12. Power to Confess Judgment.  THE BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OF ANY COURT OF RECORD, AFTER THE OCCURRENCE OF ANY EVENT OF DEFAULT HEREUNDER, TO APPEAR FOR THE BORROWER AND, WITH OR WITHOUT COMPLAINT FILED, CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, AGAINST THE BORROWER IN FAVOR OF THE BANK OR ANY HOLDER HEREOF FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST AND ALL OTHER AMOUNTS DUE HEREUNDER, TOGETHER WITH COSTS OF SUIT AND AN ATTORNEY’S COMMISSION OF FIFTEEN PERCENT (15%) OF THE PRINCIPAL AMOUNT OF THE OBLIGATIONS THEN OUTSTANDING; PROVIDED HOWEVER, (A) IF THE ACTUAL ATTORNEY’S FEES INCURRED BY THE BANK OR OTHER HOLDER HEREOF ARE LESS THAN FIFTEEN PERCENT (15%) OF SUCH PRINCIPAL AMOUNT THEN OUTSTANDING AND ALL OBLIGATIONS OWED TO THE BANK BY THE BORROWER HAVE BEEN PAID, THE BANK WILL REFUND (TO THE EXTENT ACTUALLY COLLECTED) TO THE BORROWER AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN FIFTEEN PERCENT (15%) OF SUCH PRINCIPAL AMOUNT THEN OUTSTANDING AND THE AMOUNT OF SUCH ACTUAL ATTORNEY’S FEES, OR (B) IF THE ACTUAL ATTORNEY’S FEES INCURRED BY THE BANK OR OTHER HOLDER HERE OF EXCEED FIFTEEN PERCENT (15%) OF SUCH PRINCIPAL AMOUNT THEN OUTSTANDING, WHETHER BY REASON OF JUDGMENT BEING CONTESTED OR OTHERWISE, THE BORROWER SHALL PAY TO THE BANK ON DEMAND THE AMOUNT OF ANY SUCH EXCESS AND FOR DOING SO THIS NOTE OR A COPY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT.  THE BORROWER HEREBY FOREVER WAIVES AND RELEASES ALL ERRORS IN SAID PROCEEDINGS AND ALL RIGHTS OF APPEAL AND ALL RELIEF FROM ANY AND ALL APPRAISEMENT, STAY OR EXEMPTION LAWS OF ANY STATE NOW IN FORCE OR HEREAFTER ENACTED.  INTEREST ON ANY SUCH JUDGMENT SHALL ACCRUE AT THE DEFAULT RATE.

NO SINGLE EXERCISE OF THE FOREGOING POWER TO CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS THE BANK SHALL ELECT UNTIL SUCH TIME AS THE BANK SHALL HAVE RECEIVED PAYMENT IN FULL OF THE DEBT, INTEREST AND COSTS.

13. Miscellaneous.  All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (“Notices”) must be in writing (except as may be agreed otherwise above with respect to borrowing requests) and will be effective upon receipt.  Notices may be given in any manner to which the parties may separately agree, including electronic mail.  Without limiting the foregoing, first class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices.  Regardless of the manner in which provided, Notices may be sent to a party’s address as set forth above or to such other address as any party may give to the other for such purpose in accordance with this section.  No delay or omission on the Bank’s part to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right or power.  No modification, amendment or waiver of, or consent to any departure by the Borrower from, any provision of this Note will be effective unless made in a writing signed by the Bank, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  The Borrower agrees to pay on demand, to the extent permitted by law, all reasonable costs and expenses incurred by the Bank in the enforcement of its rights in this Note and in any security therefor, including without limitation reasonable fees and expenses of the Bank’s counsel.  If any provision of this Note is found to be invalid by a court, all the other provisions of this Note will remain in full force and effect.  The Borrower and all other makers and indorsers of this Note hereby forever waive presentment, protest, notice of dishonor and notice of non-payment.  The Borrower also waives all defenses based on suretyship or impairment of collateral.  If this Note is executed by more than one Borrower, the obligations of such persons or entities hereunder will be joint and several.  This Note shall bind the Borrower and its heirs, executors, administrators, successors and assigns, and the benefits hereof shall inure to the benefit of the Bank and its successors and assigns; provided, however, that the Borrower may not assign this Note in whole or in part without the Bank’s written consent and the Bank at any time may assign this Note in whole or in part.

This Note has been delivered to and accepted by the Bank and will be deemed to be made in the State of Maryland.  This Note will be interpreted and the rights and liabilities of the Bank and the Borrower determined in accordance with the laws of the state of maryland, excluding its conflict of laws rules.  The Borrower hereby irrevocably consents to the exclusive jurisdiction of any State or federal court in the county or judicial district in the State of Maryland; provided that nothing contained in this Note will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security or against any property of the Borrower within any other county, state or other foreign or domestic jurisdiction.  The Borrower acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and the Borrower.  The Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note.

14. Commercial Purpose.  The Borrower represents that the indebtedness is being incurred by the Borrower solely for the purpose of acquiring or carrying on a business, professional or commercial activity, and not for personal, family or household purposes.

15. WAIVER OF JURY TRIAL.  The Borrower irrevocably waives any and all rights the Borrower may have to a trial by jury in any action, proceeding or claim of any nature relating to this Note, any documents executed in connection with this Note or any transaction contemplated in any of such documents.  The Borrower acknowledges that the foregoing waiver is knowing and voluntary.

The Borrower acknowledges that it has read and understood all the provisions of this Note, including the confession of judgment and the waiver of jury trial, and has been advised by counsel as necessary or appropriate.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

--

  

  

  

WITNESS the due execution hereof as a document under seal, as of the date first written above, with the intent to be legally bound hereby.

WITNESS / ATTEST:                                                                           EMERGENT BIOSOLUTIONS INC.,

a Delaware corporation

/s/  Lisa Richardson                                                                By:  /s/ R. Don Elsey                                                                (SEAL)

Print Name:   Lisa Richardson                                                               Print Name:   R. D. Elsey                                                                

Title:   Senior Director, Treasury                                                          Title:    CFO                                                                

(Include title only if an officer of entity signing to the right)

 

 

STATE OF MARYLAND                                                                )

) ss:

COUNTY OF   Montgomery                                                                           )

On this, the _28th_ day of ___July_____________,   2011  , before me, a Notary Public, the undersigned officer, personally appeared _________R. Don Elsey  ______________, who acknowledged himself/herself to be the ______________CFO__________________________ of  Emergent BioSolutions Inc., a Delaware corporation, and that he/she, in such capacity, being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing on behalf of said corporation.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

_/s/ Kimberly L. Ridgely__________

Notary Public

My commission expires:___11-11-2012______                                              Kimberly L. Ridgely

[Signature Page to Promissory Note]

--

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]