Document:

exv10w9

 

Exhibit 10.9

EMPLOYMENT AND NON-COMPETITION AGREEMENT

BETWEEN

Bruce A. Teplitzky

AND

PHARMACEUTICAL RESEARCH ASSOCIATES, INC.

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made as of
the
27th day of October, 2004 (the “Effective Date”), by and between Pharmaceutical Research Associates, Inc., a Virginia corporation (“Employer”), having its principal office in the
Commonwealth of Virginia, which is a wholly owned subsidiary of PRA International, a Delaware
corporation (“PRA International”), and Brace A. Teplitzky (“Employee”).

     WHEREAS, Employer and Employee desire to enter into an agreement for the employment by
Employer of Employee commencing on the Effective Date.

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Employer or any of its affiliated entities is superseded by the terms of the Agreement.

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

     1. Position. Employer hereby agrees to employ Employee as of the Effective Date (as
defined herein) and Employee hereby accepts employment as of the Effective Date in the position of
Senior Vice President with appropriate title, rank, status and responsibilities as determined from
time to time by the President and CEO of Employer (“President and CEO”) upon the terms and
conditions hereinafter set forth.

     2. Employment Period.

          (a) The period of employment under this Agreement shall
begin on the Effective Date and shall end on February 28, 2006, unless terminated sooner pursuant
to Section 7 of this Agreement.

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

 

 

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

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

               (i) work either on a part-time or independent contracting basis for any
other company, business or enterprise without the prior written consent of the
President and CEO; or

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

          (b) Employee agrees to use his reasonable efforts to impart his skill and knowledge relating
to the business of Employer to such individuals as are designated by Employer, and to train such
individuals in the aspects of the business with which Employee is familiar. In addition, at the
request of Employer and without additional compensation, Employee shall use his best efforts to
record and document his knowledge relating to the business of Employer.

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

          (a) Base
Salary. Employer shall pay to Employee, in equal bimonthly
installments, a base salary of USD$195,000 per year, less relevant deductions. Employee shall be
eligible for salary increases, which may be based on performance and/or competitive market factors,
as determined under the provisions of any salary policy of Employer that is generally applicable to
Employer’s employees, provided that any such increases shall be reviewed and approved in advance by
the Compensation Committee of the Board of Directors of Employer (the “Board”). Employee shall be

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eligible for such other increases in compensation as are otherwise imposed by the Board, in its
discretion, from time to time.

          (b) Bonus. Employee shall participate in an Executive Bonus Plan approved by the Board
with a minimum annual bonus target of USD$ 120,000 less relevant deductions. The performance
criteria will be determined by the Compensation Committee of the Board.

          (c) Long Term Incentives. Employee shall participate under
the terms of the PRA International 2004 Incentive Award Plan (“Incentive Award Plan”), according to
the terms set forth in Exhibit B.

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

     5. Benefits. Employee shall be eligible to participate in Employer’s standard benefits
programs, which presently include health, life and disability insurance, and those additional
benefits (the “Additional Benefits”) currently offered to Employer’s executive staff, including
club membership and monthly car allowance, as described in Exhibit C. It is agreed that the nature
and amount of the Additional Benefits, if any, shall be determined from time to time by the
Compensation Committee of the Board, in its discretion, provided that no Additional Benefits (as
defined above) will be materially reduced. Employee shall be entitled to paid vacation in
accordance with the Employer’s vacation policies in effect for executive staff during the
Employment Period. Employee shall be covered by the holiday policy of the Employer and, by any
other pension or retirement plan, disability benefit plan or any other benefit plan or arrangement
of Employer determined by the Board to be applicable to Employee.

     6. Expense Reimbursement. Subject to such conditions as Employer may from time to time
determine and pursuant to Employer’s travel policy then in place for executives, Employer shall
reimburse Employee for reasonable expenses incurred by Employee in connection with the business of
Employer and the performance of Employee’s duties hereunder.

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

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

          (b) Termination by Employer for Disability of Employee. If during the Employment
Period, Employee shall be prevented from performing his duties

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

          (c) Termination by Employer for Cause. Employer may terminate Employee’s
employment at any time for Cause. For purposes of this Agreement, “Cause” includes, but is
not limited to: (i) a material breach of this Agreement by Employee (where Employee fails to
cure such breach within ten (10) business days after being notified in writing by Employer of
such breach);
(ii) Employee’s willful failure to perform his material assigned duties without an excuse that is
reasonably acceptable to Employer; (iii) Employee engages in an act (or causes an act) that has a
material adverse impact on the reputation, business, business relationships or financial condition
of Employer; (iv) the conviction of or plea of guilty or nolo contendre by Employee to a felony or
any crime involving moral turpitude, fraud or misrepresentation; (v) misappropriation or
embezzlement by Employee of funds or assets of Employer; or (vi) Employee’s willful refusal to
perform specific directives of the President and CEO which are consistent with the scope, ethics
and nature of Employee’s duties and responsibilities hereunder. Notwithstanding the foregoing,
“Cause” shall not include a situation whereby Employer asks Employee to be based at any office or
location or to relocate to any location other than within 20 miles of Employee’s then current
location and Employee declines to do so. Termination by Employer for Cause hereunder shall not
abrogate the rights and remedies of Employer in respect of the breach or wrongful act giving rise
to such termination. In the event of termination by Employer for Cause, Employee shall receive
any and all accrued but unpaid base salary compensation (including accrued paid time off, as
applicable) due to Employee as of the Termination Date.

          (d) Termination by Employer without Cause. This Agreement may be terminated by
Employer for reasons other than death, disability or Cause upon thirty (30) days’ written notice
given to Employee. Should the Employee be terminated pursuant to this Section 7(d), Employee shall
be entitled to Termination Payments as provided for in Section 7(g).

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          (e) Termination by the Employee without Good Reason. This Agreement may be terminated
by Employee upon sixty (60) days’ written notice given to Employer. The sixtieth (60th)
day after giving of such notice shall be the Employee’s Termination Date. In the event of
termination by Employee without Good Reason, Employee shall receive any and all accrued but unpaid
base salary compensation (including accrued paid time off, as applicable) due to Employee as of the
Termination Date.

          (f) Termination by Employee for Good Reason. This
Agreement may be terminated by Employee at any time for Good Reason. For purposes of this
Agreement, “Good Reason” shall mean (i) any material breach of this Agreement by Employer (where
Employer fails to cure such breach within ten (10) business days after being notified in writing by
Employee of such breach); (ii) the diminution, without Employee’s written consent, of Employee’s
position, title, authority, duties or responsibilities as indicated in this Agreement; or (iii) the
Company requiring the Employee, without Employee’s written consent, to be based at any office or
location or to relocate to any location other than within 20 miles of Employee’s then current
location. Termination by Employee hereunder in this Section 7(f) shall not abrogate the rights and
remedies of Employee in respect of the breach giving rise to such termination.

          (g) Termination Payments.

               A. If Employee’s employment is terminated pursuant
to Section 7(a) (Employee’s Death), 7(b) (by Employer for Employee’s Disability), 7(d) (by Employer
without Cause) or 7(f) (by Employee for Good Reason) (each of the circumstances in this Section
7(g)(A) being known as a “Termination Event”), Employer shall provide Employee (or, in the case of
his death, his estate, heirs or legal representatives) the following (collectively, the
“Termination Payments”):

(i) any and all accrued but unpaid base salary compensation
(including accrued paid time off, as applicable) due to Employee
as of the date on which the Employment Period ends (the
“Termination Date”), which shall be paid on the Termination Date;
and

(ii) Employee’s full base salary (payable bi-monthly at the
same time Employee would otherwise receive such base salary if
Employee were still employed by Employer) for nine (9) months
after the Termination Date; and

(iii) health benefits after the Termination Date pursuant to
COBRA coverage (reimbursed by Employer for the first nine (9)
months) under Employer’s health benefit plan under which Employee
was receiving coverage during the Employment Period.

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               B. If a Termination Event (other than the death of
Employee as specified in Section 7(a)) occurs within twelve months after a Change in Control, then
Employee is entitled to the Termination Payments as stated in Section 7(g)(A)(i) (ii) and (iii)
above, except that the period for which salary and benefits are provided in Sections 7(g)(A)(ii)
and (iii) shall be eighteen (18) months, and all payments to be made pursuant to those sections
shall be paid to Employee in a lump sum within fifteen (15) days after the Termination Event. For
purposes of this Section and this Agreement, “Change in Control” shall mean: (i) the sale of all or
substantially all of the assets of PRA International; or (ii) the consummation of a merger or
consolidation of PRA International with any other corporation other than (A) a merger or
consolidation which would result in the voting securities of PRA International outstanding
immediately prior thereto continuing to represent more than fifty percent (50%) of the combined
voting power of the voting securities of PRA International, or such surviving entity, outstanding
immediately after such merger or consolidation, or (B) a merger or consolidation effected to
implement a recapitalization of PRA International (or similar transaction) in which no “person” (as
defined below) acquires more than thirty percent (30%) of the combined voting power of PRA
International’s then-outstanding securities; or (iii) any “person,” as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(other than (1) PRA International or (2) any corporation owned, directly or indirectly, by PRA
International or the shareholders of PRA International in substantially the same proportions as
their ownership of stock in PRA International), becomes after the Effective Date the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
PRA International representing thirty percent (30%) or more of the combined voting power of PRA
International’s then outstanding securities.

               C. Employer’s obligation to make any Termination
Payments provided in Section 7(g)(A) and (B) above is conditioned upon Employee’s execution and
non-recision of a general release in the reasonable form provided by Employer.

          (h) Tax Provisions. In the event that any payments under this Agreement or any
other compensation, benefit or other amount from Employer for the benefit of Employee are subject
to the tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”)
(including any applicable interest and penalties, the “Excise Tax”), no such payment (“Parachute
Payment”) shall be reduced (except for required tax withholdings) and Employer shall pay to
Employee by the earlier of the date such Excise Tax is withheld from payments made to Employee or
the date such Excise Tax becomes due and payable by Employee, an additional amount (the “Gross-Up
Payment”) such that the net amount retained by Employee (after deduction of any Excise Tax on the
Parachute Payments, taxes based upon the Tax Rate (as defined below) upon the payment provided for
by this Section 7(h) and Excise Tax upon the payment provided for by this Section 7(h)), shall be
equal to the amount Employee would have received if no Excise Tax had been imposed. A tax counsel
chosen by the Employer’s independent auditors, provided such person is reasonably acceptable to the
Employee (“Tax Counsel”), shall determine in good faith whether any of the Parachute

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Payments are subject to the Excise Tax and the amount of any Excise Tax, and Tax Counsel shall
promptly notify Employee of its determination. Employer and Employee shall file all tax returns and
reports regarding such Parachute Payments in a manner consistent with Employer’s reasonable good
faith determination. For purposes of determining the amount of the Gross-Up Payment, Employee shall
be deemed to pay taxes at the Tax Rate applicable at the time of the Gross-Up Payment. In the event
that the Excise Tax is subsequently determined to be less than the amount taken into account
hereunder at the time a Parachute Payment is made, Employee shall repay to Employer promptly
following the date that the amount of such reduction in Excise Tax is finally determined the
portion of the Gross-Up Payment attributable to such reduction (without interest). In the event
that the Excise Tax is determined to exceed the amount taken into account hereunder at the time a
Parachute Payment is made (including by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-Up Payment). Employer shall pay the Employee an
additional amount with respect to the Gross-Up Payment in respect of such excess (plus any interest
or penalties payable in respect of such excess) at the time that the amount of such excess is
finally determined. Employer shall reimburse Employee for all reasonable fees, expenses, and costs
related to determining the reasonableness of Employer’s position in connection with this paragraph
and preparation of any tax return or other filing that is affected by any matter addressed in this
paragraph, and any audit, litigation or other proceeding that is affected by any matter addressed
in this Section 7(h) and an amount equal to the tax on such amounts at Employee’s Tax Rate. For the
purposes of the foregoing, “Tax Rate” means the Employee’s effective tax rate based upon the
combined federal and state and local income, earnings, Medicare and any other tax rates applicable
to Employee, all at the highest marginal rate of taxation in the country and state of Employee’s
residence on the date of determination, net of the reduction in federal income taxes which could be
obtained by deduction of such state and local taxes.

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

     9. Confidential Information and Certain Property Matters.

          (a) Employee recognizes that information, knowledge, contacts and experience relating to
the businesses, operations, properties, assets, liabilities and financial condition of Employer and
the markets and industries in which it operates, including, without limitation, information
relating to business plans and ideas, trade secrets, intellectual property, know-how, formulas,
processes, research and development, methods, policies, materials, results of operations, financial
and statistical data, personnel data and customers in and related to the markets and industries in
which Employer operates (“Confidential Information”), is considered by Employer to be valuable,
secret, confidential and proprietary. Employee hereby acknowledges and agrees that the Confidential
Information is valuable, secret, confidential and proprietary to Employer,

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and further agrees that he shall not, at any time (whether during or after the Employment Period),
make public, disclose, divulge, furnish, release, transfer, sell or otherwise make available to any
person any of the Confidential Information, or otherwise use or disclose any of the same or allow
any of the same to be used or disclosed for any purpose, other than as may be permitted to Employee
under this Agreement. Notwithstanding the foregoing, Employee may, without violating this Section
9(a), disclose Confidential Information if (i) such disclosure is required to comply with a valid
court order or any administrative law order or decree; (ii) Employee gives Employer advance written
notice of the required disclosure so that Employer may, if it wishes, seek an appropriate
protective order; and (iii) Employee, in any event, requests that any disclosed information be
afforded confidential treatment, to the greatest extent possible.

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

          (c) Employee hereby acknowledges and agrees that the work performed by Employee pursuant to
his employment by Employer will be specifically ordered or commissioned by Employer, and that such
work shall be considered a “work for hire” as defined in the Copyright Revision Act of 1976 (the
“Act”), granting Employer full ownership to the work and all rights comprised therein. In addition,
Employee hereby waives in favor of Employer any and all moral rights in the work contemplated by
this Section 9(c) that Employer now has or in the future may have.

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Should any work not fall within the definition of a “work for hire” as set forth in such Act,
Employee hereby transfers and assigns to Employer full ownership of the copyright to the work and
all rights comprised therein. Employee shall sign all applications for registration of such
copyright as are requested by Employer, and shall sign all other writings and instruments and
perform all other acts necessary or desirable to carry out the terms of this Agreement.

     10. Non-Competition and Non-Solicitation

          (a) Employee agrees that during the Employment Period and for a period of nine (9) months
after Employee’s employment with Employer ceases, for whatever reason (the “Noncompetition
Period”), Employee will not, within the country where Employee’s office with Employer was located
at the Termination Date, whether as owner, manager, officer, director, employee, consultant or
otherwise, be engaged or employed by a Competing CRO to provide Customer Services that are the same
or substantially similar to the Customer Services that Employee performed for Employer at any time
during the twenty-four (24) months prior to the Termination Date.

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

For the purposes of this Agreement, the term “Customer Services” means any product or service
provided by Employer to a third party for remuneration, including, but not limited to on a contract
or outsourced basis, assisting pharmaceutical or biotechnology companies in developing and taking
drug compounds, biologies, and drug delivery devices through appropriate regulatory approval
processes, (i) during the Employment Period or (ii) about which Employee has material knowledge and
that Employee knows Employer will provide or has contracted to provide to third parties during the
twelve (12) months following the Employment Period. “Customer” means any person or legal entity
(and its subsidiaries, agents, employees and representatives) about whom Employee has acquired
material information based on employment with Employer and as to whom Employee has been informed
that Employer provides or will provide Customer Services. “Competing CRO” means any of the
following entities and their affiliates and successors to the extent that and for so long as those
said entities, affiliates, and successors directly compete with Employer in the provision of
Customer Services to Customers: Charles River Laboratories International, Inc., Covance Inc., ICON
plc, Kendle International Inc., MDS Pharma Services, PAREXEL International Corporation,
Pharmaceutical Product Development, Inc., PharmaNet, Quintiles Transnational Corp., and United
HealthCare Corporation.

          (b) Employee agrees that he shall not, during the
Noncompetition Period, directly or indirectly, whether as owner, manager, officer, director,
employee, consultant or otherwise, solicit the business of, or accept business from any Customer of
Employer at the Termination Date, unless the business being

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solicited or accepted is not in competition with or substantially similar to Employer’s
Customer Services.

          (c) Employee agrees that he shall not, during the
Noncompetition Period, directly or indirectly, solicit or induce (or attempt to solicit or induce)
to leave the employ of Employer or any of its affiliates for any reason whatsoever any person
employed by Employer or any of its affiliates at the time of the act of solicitation or inducement.

          (d) During and after the Employment Period, Employee agrees not to disparage Employer or any
of its affiliates. During and after the Employment Period, the officers with whom Employer worked
in any twenty four (24) months prior to the Termination Date agree not to disparage the character
of Employee.

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

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

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

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

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               (i) Employee agrees that Employer shall have the right to disclose this
Agreement or its contents to any future employer of Employee for the purpose of providing notice of
the post employment restrictions contained herein. Employer shall provide Employee with written
notice if and when Employer discloses the existence of this Agreement to any future employer of
Employee.

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

     12. Arbitration. Except with respect to any attempt to obtain
preliminary injunctive relief to enforce the post-employment restrictive provisions of this
Agreement (in which case any such matter may be brought initially in a court of competent
jurisdiction for purposes of resolving any request for preliminary injunctive relief), all disputes
between Employer and Employee hereunder, or otherwise arising out of the employment or termination
of employment of Employee, including but not limited to disputes arising under any state or federal
employment discrimination law, shall be settled by arbitration pursuant to the rules of the
American Arbitration Association, in Washington, D.C. Arbitration hereunder shall be by a single
arbitrator appointed by mutual agreement of the parties. The single arbitrator shall have the
authority to summarily dismiss any claim or claims brought in arbitration prior to a hearing on the
merits. The award rendered by the arbitrator shall be conclusive and binding upon the parties
hereto. Each party shall pay its own expenses of arbitration and the expenses of the arbitrator
shall be equally shared.

     13. Full
Settlement; Mitigation, Costs after a Change in Control. In no event shall
Employee be obligated to seek other employment or take any other action by way of mitigation of the
amounts (including amounts for damages for breach) payable to Employee under any of the provisions
of this Agreement, and such amounts shall not be reduced whether Employee obtains other employment.
In addition, following a Change in Control only, Employer’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which
Employer may have against Employee or others. Notwithstanding any other provisions in this
Agreement to the contrary, in the event that, following a Change in Control, any successor in
interest to Employer unsuccessfully contests and/or challenges any of Employer’s rights under this
Agreement, then the successor in interest to Employer shall

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pay Employee’s reasonable attorney’s fees and costs incurred in such contest or
challenge.

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

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

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

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

     18. Notices. All notices, requests, consents, payments, demands and other
communications required or contemplated under this Agreement (“Notices”) shall be in writing and
(a) personally delivered; (b) deposited in the United States mail,

12

 

registered or certified mail, return receipt requested, with postage prepaid; or (c) sent by
Federal Express or other internationally recognized overnight delivery service (for next business
day delivery), shipping prepaid, as follows:

	 	 	 
	

	 	If to Employer, to:
	 
	 	 
	

	 	Pharmaceutical Research Associates, Inc.
	

	 	8300 Greensboro Drive, Suite 400
	

	 	McLean, VA 22102
	

	 	Attn: President and Chief Executive Officer
	 
	 	 
	

	 	With a copy (which shall not constitute notice) to :
	 
	 	 
	

	 	The Chairman of the Board at that person’s then current business address
	 
	 	 
	

	 	If to Employee, to:
	 
	 	 
	

	 	Bruce A. Teplitzky
	

	 	7175 Cabell Avenue
	

	 	Howardsville, Virginia 24562

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

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

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

13

 

shall include any successor to Employer’s business and assets that assumes and agrees to
perform this Agreement (either by agreement or by operation of law).

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

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

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

[Signature Page to Follow]

14

 

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

	 	 	 	 	 	 	 
	Employer:	 	PHARMACEUTICAL RESEARCH	 	 
	 	 	ASSOCIATES, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Patrick K. Donnelly	 	 
	 	 	 	 	 	 	 
	 	 	Print Name: Patrick K. Donnelly	 	 
	 	 	Print Title: President and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Employee:
	 	/s/ Bruce A. Teplitaky	 	 
	 	 	 	 	 
	Print Name 	 	Bruce A. Teplitaky	 	 

15

 

EXHIBIT A

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

16

 

EXHIBIT B

Incentive Award Plan

     Employee is eligible to participate, at Employee’s election, in the Incentive Award Plan
as follows:

     First, upon the initial public offering (“IPO”) being effective and following a 4-1 stock
split, Employee will be granted 25,000 PRA International stock options at the IPO effective strike
price. All matters involving the PRA International stock options, including but not limited to
their vesting, their exercise, and their termination will be governed by the terms of the Incentive
Award Plan and an option agreement to be entered into by Employee in a form provided by PRA
International.

     Second, upon the IPO becoming effective and beginning in 2005 under the PRA International
Management Stock Purchase Plan (“MSPP”), Employee will be provided the opportunity to purchase PRA
International stock in the form of Restricted Stock Units (“RSUs”) with Employer matching in
additional stock 100% of the purchase amount. As part of the MSPP, Employee has the opportunity to
voluntarily purchase RSUs on a pretax basis by allocating and deferring a portion of Employee’s
annual final cash bonus into the plan in advance of the plan year. The deferral amount would be
capped at a maximum of 50%. All matters involving the MSPP will be governed by the terms of the
MSPP plan documents.

17

 

EXHIBIT C

Additional Benefits

	 	 	 
	Annual Car Allowance:

	 	USD$10,800
	Annual Club Membership:

	 	USD$1,200

18exv10w60

 

EXHIBIT 10.60

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	CUISINE SOLUTIONS INC
	 	 	BANK OP  CHARLES   TOWN	 	 	Preparer: MARY L. BOWERS	 
	 	STANISLAS VILGRAIN
	 	 	111 E WASHINGTON ST PO BOX 906	 	 	Loan Number                 4000760	 
	 	85 SOUTH BRAGG STREET-SUITE
	 	 	CHARLES   TOWN,    WV   25414	 	 	Date        03/15/05	 
	 	600 ALEXANDRIA VA 22312-2793
	 	 	 	 	 	Maturity Date  03/15/10	 
	 	 
	 	 	 	 	 	LoanAmount $  $200,000.00	 
	 	 
	 	 	 	 	 	Renewal Of                     	 
	 	 
	 	 	 	 	 	 	 
	 	BORROWER’S NAME AND ADDRESS
	 	 	LENDER’S NAME AND ADDRESS	 	 	 	 
	 	“I” includes each borrower above, jointly and severally.
	 	 	“You” means the
lender, its successors

 and assigns.	 	 	 	 
	 	 	 	 	 	 	 	 	 

For value recived, I promise to pay to you, or your order, at your address listed
above the PRINCIPAL sum of Two hundred thousand & no/100 Dollars $200,000.00

	þ 	Single Advance: I will receive all of this principal sum on 03/15/05. No additional advances are contemplated under this note.

	o 	Multiple Advance: The principal sum shown above
is the maximum amount of principal I can borrow under this note. On                                         

                    
I will receive the amount of $           
               
                and future principal advances are contemplated.

	 
	   	Conditions:
The conditions for future advances are     
            
        
            
        
            
        
            
                        

	 
	   	                                                                                                                                                                                                        

	 
	   	                                                                                                                                                                                                        

	 	o  	Open End Credit: You and I agree that I may borrow up to the maximum principal sum more than one time. This feature is subject to all other
conditions and expires on                                                             .
	 
	 	o 	Closed End Credit: You and I agree that I may borrow (subject to all other conditions) up to the maximum principal sum only one time.

INTEREST: I agree to pay interest on the outstanding principal balance from MARCH 15, 2005 at the rate of 6.7500%
per year until MARCH 15, 2010.

	o  	Variable Rate: This rate may then change as stated below.

	 	o 	Index Rate: The future rate will be
                           
             
the following index rate:
                                                     
	 
	   	   	                                                                                                                                                                                                        
	 
	 	   	                                                                                                                                                                                                        
	 
	 	o 	No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control.
	 
	 	o 	Frequency and Timing: The rate on this note may change
as often as
          
                      
                                          .
	 
	 	   	      A change in the interest rate will take effect          
                      
             
               
               
     
                              .
	 
	 	o 	Limitations: During the term of this loan, the applicable annual interest rate will not be more than                                          % or less than
                                        %. The rate may not change more than                                         % each                                         .

Effect of Variable Rate: A change in the interest rate will have the following effect on the payments:

	 	o 	The amount of each scheduled payment will change.     o        The amount of the final payment will change.
	 
	 	o 	            
              
                    
                        
                    
               
                     
                  
        
              
                       .

ACCRUAL METHOD: Interest will be calculated on a ACTUAL/360 basis.

POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after
maturity, and until paid in full, as stated below:

	 	þ 	on the same fixed or variable rate basis in effect before maturity (as indicated above).
	 
	 	o 	at a rate equal to             
              
                    
                        
                    
               
                     
             
        
   
      

	þ 	LATE CHARGE: If a payment is made more than 10 days after it is due, I agree to pay a late charge of 5.0000% OF THE.
	 
	   	AMOUNT DUE, MINIMUM $50.00

	o 	ADDITIONAL CHARGES: In addition to interest, I agree
to pay the following charges which o are o are not included in the principal amount above:          
      
        
              
              
         
         
        
          
                
                
          
              
           
           .

PAYMENTS: I agree to pay this note as follows:

	o 	Interest: I agree to pay accrued interest         
               
              
             
              
           
                                             
            
	 
	   	          
              
                      
               
               
              
              
          
              
               
               
                                         
	 
	o 	Principal: I agree to pay the principal                                                                                                                                            
	 
	   	                                                                                                                                                                                                        
	 
	o 	Installments: I agree to pay this note in 60 payments. The first payment will be in the amount of $3,946.55

and will be due APRIL 15, 2005. A payment of $3,946.55 will be due ON THE 15th DAY OF EACH MONTH thereafter. The final payment of the entire
unpaid balance of principal and interest will be due MARCH 15, 2010.

PURPOSE: The purpose of this loan is PROVIDE FUNDS TO PURCHASE EQUIPMENT FOR BUSINESS.

ADDITIONAL TERMS:

UNIVERSAL NOTE AND SECURITY AGREEMENT

			
	 ©1984,1991 Bankers Systems, Inc., St. Cloud, MN Form UNS-LAZ 2/6/2001
	 	(page 1 of 3)

 

     If this agreement covers inventory, I will not dispose of it except in my ordinary course
of business at the fair market value for the Property, or at a minimum price established between
you and me.

     If this agreement covers farm products I will provide you, at your request, a written list of
the buyers, commission merchants or selling agents to or through whom I may sell my farm products.
In addition to those parties named on this written list, I authorize you to notify at your sole
discretion any additional parties regarding your security interest in my farm products. I remain
subject to all applicable penalties for selling my farm products in violation of my agreement
with you and the Food Security Act. In this paragraph the terms farm products, buyers, commission
merchants and selling agents have the meanings given to them in the Federal Food Security Act of
1985.

     If this agreement covers chattel paper or instruments, either as original collateral or
proceeds of the Property, I will note your interest on the face of the chattel paper or
instruments.

REMEDIES - I will be in default on this security agreement if I am in default on any note this
agreement secures or if I fail to keep any promise contained in the terms of this agreement. If I
default, you have all of the rights and remedies provided in the note and under the Uniform
Commercial Code. You may require me to make the secured property available to you at a place which
is reasonably convenient. You may take possession of the secured property and sell it as provided
by law. The proceeds will be applied first to your expenses and then to the debt. I agree that 10
days written notice sent to my last known address by first class mail will be reasonable notice
under the Uniform Commercial Code.

My current address is on page 1.

PERFECTION OF SECURITY INTEREST - I authorize you to file a financing statement covering the
Property. I will comply with, facilitate, and otherwise assist you in connection with obtaining
possession of or control over the Property for purposes of perfecting your security interest under
the Uniform Commercial Code.

ADDITIONAL TERMS OF THE NOTE

DEFINITIONS - As used
on pages 1 and 2, “þ” means the terms that apply to this loan. “I,” “me”
or “my” means each Borrower who signs this note and each other person or legal entity (including
guarantors, endorsers, and sureties) who agrees to pay this note (together referred to as “us”).
“You” or “your” means the Lender and its successors and assigns.

APPLICABLE LAW - The law of the state in which you are located will govern this agreement. Any
term of this agreement which is contrary to applicable law will not be effective, unless the law
permits you and me to agree to such a variation. If any provision of this agreement cannot be
enforced according to its terms, this fact will not affect the enforceability of the remainder of
this agreement. No modification of this agreement may be made without your express written
consent. Time is of the essence in this agreement.

PAYMENTS - Each
payment I make on this note will first reduce the amount I owe you for charges
which are neither interest nor principal. The remainder of each payment will then reduce accrued
unpaid interest, and then unpaid principal. If you and I agree to a different application of
payments, we wilt describe our agreement on this note. I may prepay a part of, or the entire
balance of this loan without penalty, unless we specify to the contrary on this note. Any partial
prepayment will not excuse or reduce any later scheduled payment until this note is paid in full
(unless, when I make the prepayment, you and I agree in writing to the contrary).

INTEREST - Interest accrues on the principal remaining unpaid from time to time, until paid in
full. If I receive the principal in more than one advance, each advance will start to earn
interest only when I receive the advance. The interest rate in effect on this note at any given
time will apply to the entire principal sum outstanding at that time. Notwithstanding anything to
the contrary, I do not agree to pay and you do not intend to charge any rate of interest that is
higher than the maximum rate of interest you could charge under
applicable law for the extension
of credit that is agreed to in this note (either before or after maturity). If any notice of
interest accrual is sent and is in error, we mutually agree to correct it, and if you actually
collect more interest than allowed by law and this agreement, you agree to refund it to me.

INDEX RATE - The index
will serve only as a device for setting the interest rate on this note. You
do not guarantee by selecting this index, or the margin, that the interest rate on this note will
be the same rate you charge on any other loans or class of loans you make to me or other

borrowers.

POST MATURITY RATE -   For purposes of deciding when the “Post Maturity Rate” (shown on page 1)
applies, the term “maturity” means the date of the last scheduled payment indicated on page 1 of
this note or the date you accelerate payment on the note, whichever is earlier.

SINGLE ADVANCE LOANS - If this is a single advance loan, you and I expect that you will make only
one advance of principal. However, you may add other amounts to the principal if you make any
payments described in the “PAYMENTS BY LENDER” paragraph on page 2.

MULTIPLE ADVANCE LOANS - If this is a multiple advance loan, you and I expect that you will make more than one advance of principal. If this is closed end credit,
repaying a part of the principal will not entitle me to additional credit.

SET-OFF - I agree that you may set off any amount due and payable under this note against any right
I have to receive money from you.

     “Right to receive money from you” means:

	 	(1)  	any deposit account balance I have with you;
	 
	 	(2)  	any money owed to me on an item presented to you or in your
possession for collection or exchange; and
	 
	 	(3)  	any repurchase agreement or other nondeposit obligation.

     “Any amount due and payable under this note” means the total amount of which you are entitled
to demand payment under the terms of this note at the time you set off. This total includes any
balance the due date for which you properly accelerate under this note.

     If my right to receive money from you is also owned by someone who has not agreed to pay this
note, your right of set-off will apply to my interest in the obligation and to any other amounts
I could withdraw on my sole request or endorsement. Your right not set-off does not apply to an
account or other obligation where any rights are only as a representative. It also does not apply
to any Individual Retirement Account or other tax-deferred retirement account.

     You
will not be liable for the dishonor of any check when the dishonor occurs because you set
off this debt against any of my accounts. I agree to hold you harmless from any such claims
arising as a result of your exercise of your right to set-off.

DEFAULT - I will be in
default if any one or more of the following occur: (1) I fail to make a
payment on time or in the amount due; (2) I fail to keep the Property insured, if required; (3) I
fail to pay, or keep any promise, on any debt or agreement I have with you; (4) any other creditor
of mine attempts to collect any debt I owe him through court proceedings; (5) I die, am declared
incompetent, make an assignment for the benefit of creditors, or become insolvent (either because
my liabilities exceed my assets or I am unable to pay my debts as they become due); (6) I make any
written statement or provide any financial information that is untrue or inaccurate at the time it
was provided; (7) I do or fail to do something which causes you to believe you will have
difficulty collecting the amount I owe you; (8) any collateral securing this note is used in a
manner or for a purpose which threatens confiscation by a legal authority; (9) I change my name or
assume an additional name without first notifying you before making
such a change; (10) I fail to
plant, cultivate and harvest crops in due season; (11) any loan
proceeds are used for a purpose
that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands
to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G,
Exhibit M.

REMEDIES - If I am in default on this note you have, but are not limited to, the following
remedies:

	 	(1)  	You may demand immediate payment of all I owe you under this note (principal, accrued
unpaid interest and other accrued unpaid charges).
	 
	 	(2)  	You may set off this debt against any right I have to the payment of money from you,
subject to the terms of the “SET-OFF” paragraph herein.
	 
	 	(3)  	You may demand security, additional security, or additional parties
to be obligated to pay this note as a condition for not using any
other remedy.
	 
	 	(4)  	You may refuse to make advances to me or allow purchases on
credit by me.
	 
	 	(5)  	You may use any remedy you have under state or federal law.
	 
	 	(6)  	You may make use of any remedy given to you in any agreement securing this note.

     By selecting any one or more of these remedies you do not give up your right to use later any
other remedy. By waiving your right to declare an event to be a default, you do not waive your
right to consider later the event a default if it continues or happens again.

COLLECTION COSTS AND ATTORNEY’S FEES - I agree to pay all costs of collection, replevin or any
other or similar type of cost if I am in default. In addition, if you hire an attorney to collect
this note, I also agree to pay any fee you incur with such attorney plus court costs (except where
prohibited by law). To the extent permitted by the United States Bankruptcy Code, I also agree to
pay the reasonable attorney’s fees and costs you incur to collect this debt as awarded by any
court exercising jurisdiction under the Bankruptcy Code.

WAIVER - I give up my
rights to require you to do certain things. I will not require you to:

	 	(1)  	demand payment of amounts due (presentment);
	 
	 	(2)  	obtain official certification of nonpayment (protest); or
	 
	 	(3)  	give notice that amounts due have not been paid (notice of dishonor).

     I waive any defenses I have based on suretyship or impairment of collateral.

OBLIGATIONS INDEPENDENT - I understand that I must pay this note even if someone else has also
agreed to pay it (by, for example, signing this form or a separate guarantee or endorsement). You
may sue me alone, or anyone else who is obligated on this note, or any number of us together, to
collect this note. You may without notice release any party to this agreement without releasing
any other party. If you give up any of your rights, with or without notice, it will not affect my
duty to pay this note. Any extension of new credit to any of us, or renewal of this note by all or

less than all of us will not release me from my duty to pay it. (Of course, you are entitled to
only one payment in full.) I agree that you may at your option extend this note or the debt
represented by this note, or any portion of the note or debt, from time to time without limit or
notice and for any term without affecting my liability for payment of the note. I will not assign
my obligation under this agreement without your prior written approval.

CREDIT INFORMATION - I agree and authorize you to obtain credit information about me from time to
time (for example, by requesting a credit report) and to report to others your credit experience
with me (such as a credit reporting agency). I agree to provide you, upon request, any financial
statement or information you may deem necessary, I warrant that the financial statements and
information I provide to you are or will be accurate, correct and complete.

SIGNATURES: I AGREE TO THE
TERMS OF THIS NOTE (INCLUDING THOSE ON PAGES 1, 2 AND 3). I have received a copy on today’s date.

	 	 	 
	     CUISINE SOLUTIONS INC
	 	 
	 
	 	 
	

	 	

	     STANISLAS VILGRAIN, CEO
	 	 
	 
	 	 
	

	 	

	 
	 	 
	

	 	

	 	 	 
	SIGNATURE FOR LENDER:

	 	
	

	 	

	

	 	DAVID W. IRVIN
	

	 	SR VICE PRESIDENT
	 
	 	 

			
	
© 1984, 1991 Bankers Systems, Inc., St. Cloud, MN Form UNS-LAZ 2/6/2001
	 	(page 3 of 3)

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