Document:

Exhibit 10.1

 

IMS
HEALTH INCORPORATED

 

Long-Term
Incentive  Program

(As Amended and
Restated February 10, 2009)

 

1.             General.  This Long-Term Incentive Program (the “Program”)
of IMS HEALTH INCORPORATED (the “Company” or “IMS HEALTH”) authorizes the grant
of certain awards under Section 9 of the Company’s Employees’ Stock
Incentive Plan (the “ESIP”) and Section 9 of the Company’s 2000 Stock
Incentive Plan (the “2000 Plan” and, with the ESIP, the “Plans”) and sets forth
certain terms and conditions of such grants. 
The purpose of the Program is to help the Company secure and retain
employees of outstanding ability and to motivate such employees to exert their
best efforts on behalf of the Company and its subsidiaries by providing
incentives directly linked to the profitability of the Company, and otherwise
to further the purposes of the Plans. 
The applicable terms and conditions of each of the Plans are
incorporated by reference in this Program, and shall apply to the extent that
the Committee has specified that the cash or Shares that are issuable or
deliverable in settlement of an Award are drawn from either of the Plans.  If any provision of this Program or an
agreement hereunder conflicts with a provision of the applicable Plan, the
provision of the applicable Plan shall govern. 
The Committee may delegate to specified officers or employees of the
Company authority to perform administrative or other functions under the
Program.

 

2.             Definitions.  Capitalized terms used in this Program but
not defined herein have the same meanings as defined in the applicable
Plan.  In addition to such terms and
those terms defined in Section 1 above, the following are defined terms
under this Program:

 

(a)           “Account” means the account
established for a Participant under Section 6(a).

 

(b)           “Award” means the amount of a
Participant’s Award Opportunity in respect of a Performance Period determined
by the Committee to have been earned and the Participant’s rights to future
payments of cash, Shares, Restricted Stock Units or non-restricted Stock Units,
or Restricted Shares in settlement thereof.

 

(c)           “Award Opportunity” means the
Participant’s opportunity to earn specified dollar-denominated and/or Stock
Unit-denominated amounts in respect of a Performance Period.  An Award Opportunity constitutes a
conditional right to receive settlement of an Other Stock-Based Award for
purposes of the Plans.

 

(d)           “Cause” means “cause” as defined in
an employment agreement between the Company and the Participant in effect at
the time of Termination of Employment or, if there is no such employment
agreement, Cause shall mean the (1) willful malfeasance or willful
misconduct by the Participant in connection with his or her employment, (2) continuing
failure to perform such duties as are requested by any employee to whom the
Participant reports, directly or indirectly, or by the Board of Directors of
the Company or the board of directors of any Subsidiary or affiliate which
employs Participant, (3) failure by the Participant to observe policies of
the Company or his or her employer applicable to the Participant, or (4) commission
by the Participant of (i) any felony or (ii) any misdemeanor
involving moral turpitude.

 

 

(e)           “Covered Employee” means an employee
whom the Committee deems likely to be, at the end of a given Performance
Period, a “covered employee” within the meaning of Section 162(m) of
the Code.

 

(f)            “Dividend Equivalents” means credits
to a Participant’s Account in respect of each Stock Unit as determined under Section 6(b).

 

(g)           “Participant” means an employee
participating in this Program.

 

(h)           “Performance Goal” means the Company
or individual accomplishment required as a condition to the earning of an Award
Opportunity.  Unless otherwise determined
by the Committee, Performance Goals shall meet the requirements of Section 9(b) of
the ESIP.

 

(i)            “Performance Period” means the
period of two consecutive fiscal years over which an Award Opportunity may be
earned, provided that the Committee may specify a different duration for any
Performance Period.

 

(j)            “Restricted Share” means a Share
granted as an Other Stock-Based Award under the Plans, subject to a risk of
forfeiture, non-transferable prior to vesting, restricted as to the right to
receive dividends, and subject to such other restrictions as specified in the
Plans or this Program and as the Committee may specify in any applicable
agreement which must be executed by the Participant as a condition to receipt
of the grant.  A Restricted Share will be
actually issued by the Company at the time of grant, but the certificate
therefor may be retained in the custody of the Company.

 

(k)           “Stock Unit” is a bookkeeping unit
which represents a conditional right to receive one Share upon settlement,
together with a right to Dividend Equivalents as specified in Section 6(b).  Stock Units constitute a commitment by the
Company to issue or deliver Common Stock at specified future dates in
settlement of Other Stock-Based Awards under the Plans.  Stock Units are arbitrary accounting measures
created and used solely for purposes of this Program, and do not represent
ownership rights in the Company, Shares, or any asset of the Company.  Stock Units subject to a risk of forfeiture
based on continued employment and vesting may be referred to as “Restricted
Stock Units.”

 

(l)            “Termination of Employment” means
the termination of a Participant’s employment by the Company or a Subsidiary
immediately after which the Participant is not employed by the Company or any
Subsidiary; provided, however, that in the case of an Award Opportunity or
Award that constitutes a deferral of compensation under Code Section 409A,
“Termination of Employment” means a “separation from service” as defined in
Treasury Regulation § 1.409A-1(h).

 

3.             Eligibility.  Employees who are eligible to participate in
any of the Plans may be selected by the Committee to participate in this
Program.

 

4.             Designation
and Earning of Award Opportunities.

 

(a)           Designation of Award
Opportunities and Performance Goals. 
The Committee shall select employees to participate in the Program for a
Performance Period and designate, for each such Participant, the Award
Opportunity such 

 

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Participant may
earn for such Performance Period, the nature of the Performance Goal the
achievement of which will result in the earning of the Award Opportunity, and
the levels of earning of the Award Opportunity corresponding to the levels of
achievement of the performance goal.  If
an Award is intended to be a “Performance-Based Award” under Section 9(b) of
the ESIP, which would qualify under Section 162(m) of the Code, the
Committee’s determinations under this Section 4(a) shall be made not
later than 90 days after the Performance Period begins and in no event after
25% of the Performance Period has elapsed. 
The Award Opportunity earnable by each Participant shall range from 0%
to a specified maximum percentage of a specified target Award Opportunity.  The Committee shall specify a table, grid, or
formula that sets forth the amount of a Participant’s Award Opportunity that
will be earned corresponding to the level of achievement of a specified
Performance Goal.  The foregoing
notwithstanding, the per-person limitation under Section 9(b) of the
ESIP shall apply to the portion of the Award Opportunity that is denominated in
cash and the per-person limitation under Section 3(b) of the ESIP
shall apply to the portion of the Award Opportunity that is denominated in
Stock Units in the case of any Award governed by the ESIP.  The ESIP’s per-person limitation shall be
applied taking into account the fact that Performance Periods may overlap.  Accordingly, any Award Opportunity designated
for any new Performance Period under the Program shall be limited such that the
maximum amounts earnable under such Award Opportunity, together with the
maximum amounts earnable under all other previously authorized Performance
Periods which overlap with such new Performance Period, will not exceed the
applicable per-person limitation in effect for the first year of the new
Performance Period.

 

(b)           Additional Participants
and Award Opportunity Designations During a Performance Period.  The provisions of Section 4(a) notwithstanding,
at any time during a Performance Period the Committee may select a new employee
or a newly promoted employee to participate in the Program for that Performance
Period and/or designate, for any such Participant, an Award Opportunity (or
additional Award Opportunity) amount for such Performance Period.  In determining the amount of the Award
Opportunity for such Participant under this Section 4(b), the Committee
may take into account the portion of the Performance Period already elapsed,
the performance achieved during such elapsed portion of the Performance Period,
and such other considerations as the Committee may deem relevant.  The Committee shall have no authority to
grant additional Award Opportunities under this Section 4(b) if and
to the extent that such authority would cause any Award Opportunity granted to
a Covered Employee to not qualify as “performance-based compensation” under Section 162(m) of
the Code.

 

(c)           Determination of Award.  As promptly as practicable after the end of
each Performance Period, the Committee shall determine the extent to which the
Performance Goal for the earning of Award Opportunities was achieved during
such Performance Period and the resulting Award to the Participant for such
Performance Period.  The Committee may
adjust upward or downward the amount of an Award, in its sole discretion, in
light of such considerations as the Committee may deem relevant (but subject to
applicable limitations of the Program, including the maximum Award Opportunity
authorized for each Participant); provided, however, that, with respect to a
Covered Employee, no upward adjustment may be made and adjustments otherwise
shall comply with applicable requirements of Treasury Regulation 1.162-27(e) under
the Code; and provided further that, for any Performance Period beginning in
2009 or thereafter, the Committee shall have no discretion to adjust an Award
upward or downward (non-discretionary adjustments 

 

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in accordance with
explicit and objective terms set forth as part of the designation of the
Performance Goal under Section 4(a) will be permitted, however).  In all cases, the Committee’s determination
under this Section 4(c) shall be made between January 1 and March 15
following the end of a Performance Period that ends on the last day of the
Company’s fiscal year, and shall be made within 75 days following the end of
any Performance Period ending at a date other than the last day of the Company’s
fiscal year.

 

(d)           Change in Control.  In the event of a Change in
Control during the Performance Period, each Participant’s Award Opportunity
shall be deemed earned at the target level and settled by delivery of cash and
Shares without further restrictions or vesting requirements, unless otherwise
provided by the Committee at the time the Award Opportunity is designated under
Section 4(a).  If, upon a Change in
Control, an Award Opportunity is deemed earned at any level less than the
maximum level, Participants shall retain the opportunity to earn any unearned
portion of the Award Opportunity based on performance in the remainder of the
Performance Period.  For purposes of this
Section 4(d), settlement shall occur within five business days after the
Change in Control, except that, in the case of any Award that constitutes a
deferral of compensation under Code Section 409A, settlement shall occur
within five business days after (i) the occurrence of a “409A Change in
Control” (as defined in the applicable Plan) occurring at the time of or
following the Change in Control or (ii) upon occurrence of the Change in
Control occurring within 90 days after the 409A Change in Control, but only if
the occurrence of the Change in Control is non-discretionary and objectively
determinable at the time of the 409A Change in Control (in this case, the
Participant shall have no influence on when during such 90-day period the
settlement shall occur).  If a Change in
Control occurs but settlement of an Award that constitutes a deferral of
compensation under Code Section 409A does not occur under the preceding
sentence, such Award shall be settled at the earliest of (i) the earliest
permitted time of settlement that would have applied if the Performance Period
continued to its conclusion in the absence of a Change in Control, (ii) occurrence
of a 409A Change in Control, or (iii) the Participant’s separation from
service, subject to the six-month delay rule in Section 17(a)(iii)(B) of
the ESIP and Section 16(a)(iii)(B) of the 2000 Plan.  In the event that any vested Stock Unit that
constitutes a deferral of compensation under Code Section 409A cannot be
settled upon a Change in Control or immediately upon the Participant’s
separation from service after a Change in Control, the Participant shall have
the right to elect to denominate such Stock Units in cash (based on the then
Fair Market Value of Shares) both at the time of the Change in Control and
again upon separation from service following the Change in Control.  If the Participant elects to denominate such
Award in cash, the Company will adjust the cash payment to reflect the deferred
settlement date by multiplying the cash amount by the product of the six-month
CMT Treasury Bill annualized yield rate as published by the U.S. Treasury for
the date on which the award was denominated in cash (or the most appropriate
surrogate for such rate if such rate is not available) multiplied by a
fraction, the numerator of which is the number of days from and including the
date on which the award was denominated in cash until and including the date of
payment of such award to Executive and the denominator of which is 365, and pay
such adjusted amount at settlement.

 

5.             Vesting of
Awards and Settlement.

 

(a)           Vesting of Award .  Awards with respect to a given Performance
Period shall become vested at such times as the Committee shall determine.  The foregoing 

 

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notwithstanding,
the unvested portion of any Award shall immediately vest upon a Change in
Control or as otherwise provided under Section 7 in the event of
Termination of Employment in specified circumstances.  In addition, the Committee may, in its sole
discretion, accelerate the vesting of any unvested portion of an Award.
Restricted Stock Units and unvested deferred cash amounts shall be credited to
the “unvested subaccount” under the Participant’s Account.

 

(b)           Form of Award and
Deferral.  The Committee shall
specify whether cash, deferred cash, Shares, Restricted Stock Units,
non-restricted Stock Units or Restricted Shares will be paid, issued, credited
or granted to the Participant upon the earning of an Award Opportunity.  A Participant will be permitted to elect to
defer settlement of the Award, in the discretion of the Committee; any deferral
election must be made in accordance with Exhibit A to the 1998 ESIP and
any other restrictions imposed by the Senior Vice President — Human
Resources.   If Stock Units (Restricted
or non-restricted) or deferred cash are credited to a Participant’s Account,
the Participant will not be permitted to elect to change the form of deferral
in a way affecting Stock Units (i.e., he or she may not switch out of the Stock
Units into deferred cash or vice versa), except as otherwise provided under Section 4(d).

 

(c)           Settlement of Award and
Account.  Any non-deferred,
vested Award shall be paid   by the
Company in settlement promptly after the date of determination by the Committee
under Section 4(c), subject to Sections 4(d) and 7.  For this purpose, the term “promptly” means,
for a Performance Period that ends on the last day of a fiscal year, by the
following April 30, and for a Performance Period that ends earlier than
the last day of a fiscal year, within 75 days after the lapse of the
Participant’s substantial risk of forfeiture with respect to such Award.  With respect to any unvested and/or deferred
amount in the Participant’s Account, deferred cash will be paid in cash on the
first business day after the date it is both vested and subject to no further
deferral, Stock Units will be settled by issuing and/or delivering to the
Participant one Share for each Stock Unit being settled on the first business
day after the date the Stock Units are both vested and subject to no further
deferral, and certificates representing Shares will be delivered promptly after
the date Restricted Shares vest.  Any
deferral period will end immediately prior to a 409A Change in Control, subject
to the settlement and related rules under Section 4(d) (including
cash denomination election rules).  The
Committee or its delegee may, in its sole discretion, determine the manner in
which whole Shares shall be delivered by the Company and the manner of
settlement of any fractional Share.

 

(d)           Tax Withholding.  The Company shall deduct from any settlement
of a Participant’s Award or other payment to the Participant any Federal,
state, or local withholding or other tax or charge which the Company is then
required to deduct under applicable law with respect to the Award.  In furtherance of this requirement, the
Company shall withhold from the Shares issuable or deliverable in settlement of
a Participant’s Stock Units or upon the vesting of Restricted Shares the number
of Shares having an aggregate Fair Market Value equal to any Federal, state,
and local withholding or other tax or charge which the Company is required to
withhold under applicable law, unless the Participant has otherwise elected and
has made other arrangements satisfactory to the Company to pay such withholding
amounts.

 

(e)           Non-Transferability.  An Award Opportunity and any resulting Award,
including any deferred cash, Stock Unit, Restricted Share, Account or Account
balance, or other right hereunder shall be non-transferable and subject to such

 

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related
restrictions as specified in Sections 13 and 17(a)(vii) of the ESIP and
Sections 12 and 16(a)(viii) of the 2000 Plan.

 

6.             Certain
Terms of Accounts and Awards.

 

(a)           Account.  The Company shall maintain a bookkeeping
account for each Participant reflecting the amount of Stock Units, deferred
cash and other amounts then credited to the Participant hereunder.  Restricted Shares will not be deemed to be
credited to such Account, but the Company may provide include on any account
statement information with respect to the Participant’s Restricted Shares under
the Program.  The Account may include
subaccounts or other appropriate designations.

 

(b)           Dividend Equivalents and Dividends.  Dividend Equivalents shall be payable or credited on Stock Units (whether Restricted or non-restricted), and dividends shall be payable on Restricted Shares, if and to the extent specified by the Committee.  Without limiting the authority of the Committee, the Committee may specify that Dividend Equivalents will not be credited to the Participant’s Account and dividends will not be paid on Restricted Shares on regular dividend payment dates, but at such time as Stock Units are to be settled or Restricted Shares vest the Participant shall receive a cash payment, together with the issuance of each Share in settlement of each Stock Unit or the vesting of each Restricted Share, equal to the aggregate amount of regular cash dividends on one Share the record date for which occurred between the beginning of the Performance Period and the date of such settlement or vesting.  No interest will be payable in connection with such dividend equivalents or dividends.  Dividend Equivalents will be deemed to be separate payments from the underlying Stock Units or Restricted Shares for purposes of Code Section 409A.  Determinations as to the form and timing of payment of Dividend Equivalents under this Section 6(b) shall be made at the time of designation of the Award Opportunity, except to the extent otherwise permitted in compliance with Code Section 409A.
 

(c)           Adjustments.  The Committee may adjust the number of Stock
Units credited to Participant’s Account and/or the number of the Participant’s
Restricted Shares in order to prevent dilution or enlargement of Participants’
rights with respect thereto, to reflect any changes in the number of
outstanding Shares or other effect resulting from any event referred to Section 10(a) of
the ESIP or Section 9(a) of the 2000 Plan.  Participants shall have a legal right to
adjustments to Award Opportunities and Awards in the event of an equity
restructuring to the extent provided in Section 10(a) of the ESIP or Section 9(a) of
the 2000 Plan.

 

(d)           Grandfathered Awards.  Any Award that was vested before 2005 and
remains outstanding at the date of amendment and restatement of the Plan on October 21,
2008 shall be subject to the terms of this Plan and interpretations hereunder
as in effect on October 3, 2004, and shall not be materially modified
thereafter.

 

7.             Effect of
Termination of Employment.

 

(a)           Termination Prior to
Completion of Performance Period. 
Except to the extent set forth in subsections (i) and (ii) of
this Section 7(a), upon a Participant’s Termination of Employment prior to
completion of a Performance Period, the Participant’s Award Opportunity
relating to such Performance Period shall cease to be 

 

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earnable and shall
be canceled, and the Participant shall have no further rights or opportunities
hereunder:

 

(i)                                     Disability or death.  If Termination of Employment is due to the
Disability or death of the Participant, the Participant or his or her
beneficiary shall be deemed to have earned and shall be entitled to receive an
Award for any Performance Period in which termination occurs equal to the Award
which would have been earned had Participant’s employment not terminated
multiplied by a fraction the numerator of which is the number of calendar days
from the beginning of the Performance Period to the date of Participant’s
Termination of Employment and the denominator of which is the number of
calendar days in the Performance Period. 
Such pro rata Award will be determined at the same time as Awards for
continuing Participants are determined (i.e., normally at the end of the
Performance Period in accordance with Section 4(c)).  Upon its determination, such pro rata Award
shall be fully vested and shall be settled in cash and Shares (without further
vesting required) by March 15th of the year following completion of the
Performance Period (or at any earlier applicable date under Section 5(c) or
4(d)), except that, if the Participant is eligible to file and has timely filed
an irrevocable election to defer settlement following a Termination of
Employment due to Disability, such pro rata Award shall be settled in
accordance with such deferral election. 
The portion of the Participant’s Award Opportunity not earned will cease
to be earnable and will be canceled.  Section 17(g) of
the 1998 ESIP and Section 16(g) of the 2000 Plan shall apply, but the
Award shall be deemed to be subject to a performance-based vesting condition
until the determination as to the extent of earning is made hereunder.

 

(ii)                                  Committee Discretion.  The Committee may determine that the
Participant shall be deemed to have earned all or a portion of an Award
Opportunity for the Performance Period in which termination occurred, either at
the time of termination or following completion of the Performance Period,
except that no such determination may be made if the Company terminated the
Participant for Cause, and in the case of an Award that constitutes a deferral
of compensation under Code Section 409A, the Committee’s determination as
to the deemed earning of the Award shall not result in an acceleration of the
time of settlement of the Award not otherwise permitted under Code Section 409A.

 

(b)           Termination After
Completion of Performance Period. 
Upon a Participant’s Termination of Employment after completion of a
given Performance Period (including a termination prior to the Committee’s
determination of the amount of the Participant’s Award Opportunity earned), the
following provisions shall apply:

 

(i)                                     Vested Portion of Award.  Any vested portion of the Participant’s Award
(regardless of any elective deferral) shall be settled on the 30th day following Termination of Employment,
subject to the six-month delay rule in Section 17(a)(iii)(B) of
the ESIP and Section 16(a)(iii)(B) of the 2000 Plan (applicable to
any Award that constitutes a deferral of compensation under Code Section 409A),
except that, if Termination of Employment is by the Company for Cause and prior
to the Committee’s determination of the amount of Award Opportunity earned for
a given Performance Period, 

 

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the Participant’s
Award for that Performance Period will be forfeited, and if Termination of
Employment is due to Disability or Retirement and the Participant is eligible
to file and has timely filed an irrevocable election to defer settlement of his
Account following Termination of Employment, such Account shall be settled in
accordance with such deferral election.

 

(ii)                                  Unvested Portion of Award.  Except to the extent set forth in subsections
(A) and (Bi) of this Section 7(b)(ii), any unvested Award, including
any Restricted Stock Units and unvested deferred cash credited to the
Participant’s Account and unvested Restricted Shares, will be forfeited:

 

(A)                              Disability,
death, or Retirement.  If Termination of
Employment is due to the Disability or death of the Participant, or if
Termination of Employment is due to Retirement and the Committee has
specifically approved the vesting upon such Retirement, any Award, including
Restricted Stock Units, deferred cash and Restricted Shares, shall be deemed
vested for purposes of this Section 7(b)(ii). Section 17(g) of
the 1998 ESIP and Section 16(g) of the 2000 Plan shall apply.

 

(B)                                Committee
Discretion.  The provisions of (A) above
notwithstanding, the Committee may determine to accelerate the vesting of all
or any portion of a Participant’s Award, except in the event that the Company
terminated the Participant for Cause.

 

(C)                                409A
Awards.  In the case of an Award that
constitutes a deferral of compensation under Code Section 409A, the lapse
of the substantial risk of forfeiture of the Award under (A) or (B) above
shall not result in an acceleration of the time of settlement of the Award not
otherwise permitted under Code Section 409A.

 

(c)           Other Termination
Provisions.  Any vesting and
settlement of Award Opportunities and Awards provided for in a separate
agreement between the Participant and the Company shall be subject to the rules for
compliance with Code Section 409A set forth in Section 17 of the 1998
ESIP and Section 16 of the 2000 Plan, and to the terms and provisions of
such separate agreement.

 

8.             Forfeiture
of Awards and Gain Realized Upon Prior Vesting and Settlement.

 

The greatest
assets of IMS HEALTH are its employees, technology and customers.  In recognition of the increased risk of
unfairly losing any of these assets to its competitors, IMS HEALTH has adopted
the following policy:

 

If a Participant
directly or indirectly engages in any of the “Detrimental Activities” defined
below during his or her employment or after having left employment (to the
extent provided below) by the Company or any of its affiliates (each, an “IMS
HEALTH Company”):

 

Any unvested
Awards (including Restricted Stock Units, cash, and Restricted Shares) shall
automatically be forfeited on the later of the date of the 

 

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Participant’s  Termination of Employment or the date of his
or her Detrimental Activity, without regard to the provisions of Section 7;
and

 

Any Awards that
vested within one year prior to, or at any time after, the date of the
Participant’s  Detrimental Activity (the “Forfeiture
Period”) but which have not yet been settled shall automatically be forfeited
at the later of the date of his or her Termination of Employment or the date of
his or her Detrimental Activity; and

 

The Participant
shall pay to the Company, in cash, a forfeiture amount  with respect to any Awards that vested and
were settled during the Forfeiture Period equal to the amount of cash paid to
Participant in such settlement plus the fair market value (determined as of the
date of settlement of the Stock Units or date of vesting of Restricted Shares)
of the Shares delivered to the Participant in settlement of his or her Stock
Units or the Restricted Shares that became vested during the Forfeiture Period,
such forfeiture amount payable at the later of the Participant’s Termination of
Employment or the date of his or her Detrimental Activity.

 

Detrimental
Activities are defined as:

 

using or
disclosing any information that has been treated by an IMS HEALTH Company as
confidential or proprietary and is of competitive advantage to such IMS HEALTH
Company, unless the Participant is using or disclosing it in the course of his
or her job with such IMS HEALTH Company,

 

during the period
beginning at the start of the Performance Period and ending twelve months after
the Participant leaves employment with any IMS HEALTH Company (the “Prohibitive
Period”), soliciting for anyone other than an IMS HEALTH Company the trade or
business of any entity that was a customer, prospective customer or data
supplier of an IMS HEALTH Company during the period that the Participant worked
for any IMS HEALTH Company,

 

during the
Prohibitive Period, soliciting any employee of any IMS HEALTH Company to leave
his or her employment; or employing or otherwise using the services of any
person who is or was an IMS HEALTH Company employee during the last twelve
months that the Participant  worked for
an IMS HEALTH Company, or

 

during the
Prohibitive Period, directly or indirectly (including without limitation as an
officer, director, employee, advisor, consultant or investor), (i) seeking
or accepting any employment or other work with or providing assistance to any
person or entity that offers Competitive Services (as defined below) to any
person or entity that was a customer or potential customer of any IMS HEALTH
Company at any time during the last two years of his or her employment with any
IMS HEALTH Company, or (ii) otherwise providing Competitive Services.

 

For purposes hereof, “Competitive
Services” means engaging in of the following activities anywhere in the world
in connection with providing information services to the pharmaceutical and
healthcare industry:

 

(a)                                  creating
market research reports or audits;

 

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(b)                                 using
or developing technology similar to that which IMS HEALTH uses to process
pharmaceutical or health care information, including but not limited to
decision support tools, data warehousing applications and data mining
applications;

 

(c)                                  management
of sales forces;

 

(d)                                 measurement
of sales force performance or product performance;

 

(e)                                  creation
of physician profiles for purposes of targeting; or

 

(f)                                    micromarketing
programs based on actual prescribing behavior of physicians and other
prescribers.

 

By
accepting any grant of an Award Opportunity or Award, the Participant shall be
deemed to have consented to a deduction from any amounts the Company or the
Participant’s employer owes to him or her from time to time equal to the
forfeiture amount, to the extent such deduction is permitted by applicable law.

 

9.             General
Provisions.

 

(a)           Changes to this Program.  The Committee may at any time amend, alter,
suspend, discontinue, or terminate this Program, and such action shall not be
subject to the approval of the Company’s shareholders; provided, however, that
any amendment to the Program beyond the scope of the Committee’s authority
shall be subject to the approval of the Board of Directors; and provided
further, that, without the consent of an affected Participant, no such action
may materially impair the rights of such Participant with respect to an Award
outstanding at the time of the amendment. 
The foregoing notwithstanding, the Committee may, in its discretion,
accelerate the termination of any deferral period and the resulting settlement
of Stock Units or other deferred amounts, with respect to an individual
Participant or all Participants, without the consent of the affected
Participants.

 

(b)           Not Annual Bonus for
Purposes of Other Plans. 
Amounts earned or payable under the Program shall not be deemed to be
annual incentive or annual bonus compensation for purposes of any retirement or
supplemental pension plan of the Company, any employment agreement or change in
control agreement between the Company and any Participant, or for purposes of
any other plan, unless the Company shall enter into a written agreement that
specifically identifies this Program by name and specifies that amounts earned
or payable hereunder shall be considered to be annual incentive or annual bonus
compensation.

 

(c)           Unfunded Status of
Participant Rights.  Award
Opportunities, Awards (other than Restricted Shares), Accounts, Stock Units and
other deferred amounts, and related rights of a Participant represent unfunded
deferred compensation obligations of the Company for ERISA and federal income
tax purposes and, with respect thereto, the Participant shall have rights no
greater than those of an unsecured creditor of the Company.

 

(d)           Nonexclusivity of the
Program.  The adoption of this
Program shall not be construed as creating any limitations on the power of the
Board or Committee to adopt such other compensation arrangements as it may deem
desirable for any Participant.

 

10

 

(e)           Additional Terms Relating
to Participants in Japan.  The
Shares subject to Awards to Participants in Japan shall consist solely of
treasury shares, that is, the shares of IMS Health Incorporated already issued
and held in the name of IMS Health Incorporated.

 

11Exhibit 10.1

 

FORM OF INDEMNIFICATION AGREEMENT

 

This Indemnification
Agreement (this “Agreement”), dated as of                             ,
is made by and between UNITED THERAPEUTICS CORPORATION, a Delaware corporation
(the “Company”), and                               
(the “Indemnitee”), an “agent” (as hereinafter defined) of the
Company.

 

RECITALS

 

A.                                   The Company recognizes that competent and
experienced persons are increasingly reluctant to serve as directors or
executive officers of corporations unless they are protected by comprehensive
liability insurance or indemnification, or both, due to increased exposure to
litigation costs and risks resulting from their service to such corporations,
and due to the fact that the exposure frequently bears no reasonable
relationship to the compensation of such directors and executive officers;

 

B.                                     The Company and the Indemnitee recognize
that plaintiffs often seek damages in such large amounts and the costs of
litigation may be so enormous (whether or not the case is meritorious), that
the defense and/or settlement of such litigation is often beyond the personal
resources of directors and executive officers;

 

C.                                     In order to induce and encourage
competent and experienced persons such as Indemnitee to serve and continue to
serve as directors and executive officers of the Company and in any other
capacity with respect to the Company, and to otherwise promote the desirable
end that such persons will resist what they consider unjustified lawsuits and
claims made against them in connection with the good faith performance of their
duties, with the knowledge that certain expenses, judgments, fines and
penalties incurred by them in their defense of such litigation are to be borne
by the Company and they shall receive the maximum protection against such risks
and liabilities as may be afforded by law, the Company has determined that  the interests of the Company and its
stockholders would best be served by a combination of liability insurance
coverage and the indemnification by the Company of the directors and executive
officers of the Company;

 

D.                                    Section 145 of the General
Corporation Law of Delaware (“Section 145”), under which the Company is
organized, empowers the Company to indemnify and advance expenses to its
directors, officers, employees and agents by agreement and to indemnify and
advance expenses to persons who serve, at the request of the Company, as the
directors, officers, employees or agents of other corporations or enterprises,
and expressly provides that the indemnification and advancement provided by Section 145
is not exclusive;

 

E.                                      The Company’s Certificate of
Incorporation and By-Laws require the Company to indemnify and advance expenses
to its directors and officers, permit the Company to enter into agreements with
any of its directors or officers providing such rights of indemnification as
the Company may deem appropriate, and expressly provide that the
indemnification and advancement of expenses provided by the Certificate of
Incorporation and By-Laws is not exclusive;

 

 

F.                                      The Board of Directors has determined
that contractual indemnification as set forth herein is not only reasonable and
prudent but necessary to promote the best interests of the Company and its
stockholders;

 

G.                                     The Company desires and has requested the
Indemnitee to serve or continue to serve as a director or executive officer of
the Company free from undue concern for claims for damages arising out of or
related to such services to the Company; and

 

H.                                    The Indemnitee is willing to serve, or to
continue to serve, the Company, only on the condition that he or she is
furnished the indemnity provided for herein.

 

AGREEMENT

 

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

 

1.                                       Definitions and References.

 

(a)                                  Agent.  For purposes
of this Agreement, “agent” of the Company means any person who is or was a
director, officer, employee or other agent of the Company or a subsidiary of the
Company, or while a director, officer, employee or other agent of the Company
or a subsidiary of the Company is or was serving at the request of, for the
convenience of, or to represent the interest of the Company or a subsidiary of
the Company as a director, officer, employee or agent of another foreign or
domestic corporation, partnership, joint venture, trust or other enterprise.

 

(b)                                 Change in Control. 
For purposes of this Agreement, “change in control” means a change in
control of the Company occurring after the date of this Agreement of a nature
that would be required to be reported in response to Item 5.01 of Current
Report on Form 8-K (or in response to any similar item on any similar
schedule or form) promulgated under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) whether or not the Company is then subject to such
reporting requirement; provided, however, that, without
limitation, a change in control shall be deemed to have occurred if after the
date of this Agreement: (i) any “person” (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 30% or more of the combined
voting power of the Company’s then outstanding securities without the prior
approval of at least

 

2

 

two-thirds of the members
of the Board of Directors in office immediately prior to such person attaining
such percentage, (ii) the Company is a party to a merger, consolidation,
sale of assets or other reorganization, or a proxy contest, as a consequence of
which members of the Board of Directors in office immediately prior to such
transaction or event constitute less than a majority of the Board of Directors
thereafter, or (iii) during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board of
Directors (including for this purpose any new director whose election or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then still in office who were directors at
the beginning of such period) cease for any reason to constitute at least a
majority of the Board of Directors

 

(c)                                  Expenses.  For purposes
of this Agreement, “expenses” includes all direct and indirect costs of any
type or nature whatsoever (including, without limitation, all attorneys’ fees
and related disbursements and other out-of-pocket costs), actually and
reasonably incurred by the Indemnitee in connection with either the
investigation, defense or appeal of a proceeding or establishing or enforcing a
right to indemnification or advancement under this Agreement, Section 145
or otherwise, and amounts paid in settlement by or on behalf of the Indemnitee,
but shall not include any final judgments, fines or penalties actually levied
against the Indemnitee.

 

(d)                                 Independent Legal Counsel. 
For purposes of this Agreement, “independent legal counsel” means a law
firm or a member of a law firm that neither is presently nor in the past five
years has been retained to represent:  (i) the
Company or the Indemnitee in any matter material to either such party, or (ii) any
other party to the proceeding giving rise to a claim for indemnification
hereunder.  Notwithstanding the
foregoing, the term “independent legal counsel” shall not include any person
who, under the applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Company or the
Indemnitee in an action to determine the Indemnitee’s right to indemnification
under this Agreement.

 

(e)                                  Proceeding.  For purposes
of this Agreement, “proceeding” means any threatened, pending or completed
action, suit or other proceeding, whether brought by or in the right of the
Company or otherwise, and whether of a civil, criminal, administrative,
investigative, legislative or other nature.

 

(f)                                    Subsidiary.  For purposes
of this Agreement, “subsidiary” means any corporation of which more than 50% of
the outstanding voting securities are owned directly or indirectly by the
Company, by the Company and one or more other subsidiaries or by one or more
other subsidiaries.

 

(g)                                 References.  For purposes
of this Agreement, “other enterprise” shall include employee benefit plans;
references to “fines” shall include any excise tax assessed with respect to any
employee benefit plans; references to “serving at the request of the Company”
shall include any service as a director, officer, employee or agent of the
Company which imposes duties on, or involves services by, such director,
officer, employee or agent with respect to an employee benefit plan, its
participants or beneficiaries; and any person who acts in good faith and

 

3

 

in a manner he or she
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner “not
opposed to the best interests of the Company” as referred to in this Agreement.

 

2.                                       Agreement to Serve. 
The Indemnitee agrees to serve and/or continue to serve as an agent of
the Company, at the will of the Company (or under separate agreement, if such
agreement exists), so long as the Indemnitee is duly appointed or elected
and qualified in accordance with the applicable provisions of the By-Laws of
the Company or any subsidiary of the Company or until such time as the
Indemnitee is removed as permitted by law or tenders a resignation in writing; provided,
however, that nothing contained in this Agreement is intended to create
any right to continued employment by the Indemnitee in any capacity.

 

3.                                       Indemnity in Third Party Proceedings. 
The Company shall indemnify the Indemnitee if the Indemnitee was or is a
party to or is threatened to be made a party to any proceeding (other than a
proceeding by or in the right of the Company) by reason of the fact that the
Indemnitee is or was an agent of the Company, including any proceeding based
upon any act or inaction by the Indemnitee in the Indemnitee’s capacity as an
agent of the Company, against any and all expenses, judgments, fines and
penalties actually and reasonably incurred by the Indemnitee in connection with
such proceeding, but only if the Indemnitee acted in good faith and in a manner
he or she reasonably believed to be in or not opposed to the best interests of
the Company, and, with respect to any criminal proceeding, had no reasonable
cause to believe his or her conduct was unlawful.  The termination of any proceeding by
judgment, order of court, settlement, conviction or on plea of nolo contendere,
or its equivalent, shall not, of itself, create a presumption that the
Indemnitee did not act in good faith and in a manner which he or she reasonably
believed to be in or not opposed to the best interests of the Company, and with
respect to any criminal proceedings, that the Indemnitee had reasonable cause
to believe that his or her conduct was unlawful.

 

4.                                       Indemnity in Derivative Actions;
Indemnification as Witness.

 

(a)                                  The Company shall indemnify the
Indemnitee if the Indemnitee was or is a party to or is threatened to be made a
party to any proceeding by or in the right of the Company to procure a judgment
in its favor by reason of the fact that the Indemnitee is or was an agent of
the Company, including any proceeding based upon any act or inaction by the
Indemnitee in the Indemnitee’s capacity as an agent of the Company, against all
expenses actually and reasonably incurred by the Indemnitee in connection with
such proceeding, but only if the Indemnitee acted in good faith and in a manner
he or she reasonably believed to be in or

 

4

 

not opposed to the best
interests of the Company, and except that no indemnification under this Section 4
shall be made in respect of any claim, issue or matter as to which the
Indemnitee shall have been found, in a final, nonappealable judgment or other
final, nonappealable adjudication, to be liable to the Company, unless and
only to the extent that the Court of Chancery of the State of Delaware or
the court in which such proceeding was brought shall determine upon application
that, despite the adjudication of liability but in view of all the
circumstances of the case, the Indemnitee is fairly and reasonably entitled to
indemnity for such expenses as such court shall deem proper.

 

(b)                                 Notwithstanding any other provisions of
this Agreement, to the extent the Indemnitee is, by reason of the fact that he
or she is or was an agent of the Corporation, involved in any proceeding but
neither is nor is threatened to be made a party to such proceeding, including
but not limited to testifying as a witness or furnishing documents in response
to a subpoena or otherwise, the Indemnitee shall be indemnified against any and
all expenses actually and reasonably incurred by or for him or her in
connection therewith.

 

5.                                       Indemnification of Expenses of Successful
Party.  Notwithstanding any other provisions of this
Agreement, to the extent that the Indemnitee has been successful on the merits
or otherwise in defense of any proceeding or in defense of any claim, issue or
matter therein, the Company shall indemnify the Indemnitee against all expenses
actually and reasonably incurred in connection with such proceeding.

 

6.                                       Partial Indemnification. 
If the Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of any expenses,
judgments, fines or penalties, actually and reasonably incurred by the
Indemnitee in a proceeding or in connection with any judicial proceeding or
arbitration pursuant to Section 8(d) to enforce rights under this
Agreement but is not entitled, however, to indemnification for the total amount
thereof, the Company shall nevertheless indemnify the Indemnitee for the
portion thereof to which the Indemnitee is entitled.

 

7.                                       Advancement of Expenses. 
Subject to Section 12(a) hereof, the Company shall advance all
expenses incurred by the Indemnitee in connection with any proceeding to which
the Indemnitee was or is a party or is threatened to be made a party by reason
of the fact that the Indemnitee is or was an agent of the Company.  The Indemnitee hereby undertakes to repay
such amounts advanced only if, and to the extent that, it shall ultimately be
determined in a final, nonappealable judgment or other final, nonappealable
adjudication, that the Indemnitee is not entitled to be indemnified against
such expenses by the Company as authorized by this Agreement.  The advances to be made hereunder shall be
paid by the Company to or on behalf of the Indemnitee within thirty (30) days
following delivery of a written request therefor by the Indemnitee to the Secretary
of the Company.  Such request shall
reasonably evidence the expenses incurred by the Indemnitee and shall include
or be accompanied by an undertaking, by

 

5

 

or on behalf of the
Indemnitee, to repay such amounts advanced if it shall ultimately be determined
in a final, nonappealable judgment or other final, nonappealable adjudication,
that the Indemnitee is not entitled to be indemnified against such expenses by
the Company as authorized by this Agreement or otherwise.

 

8.                                       Notice and Other Indemnification and
Advancement Procedures.

 

(a)                                  Promptly after receipt by the Indemnitee
of notice of the commencement of or the threat of commencement of any
proceeding against the Indemnitee by reason of the fact that the Indemnitee is
or was an agent of the Company, the Indemnitee shall, if the Indemnitee
believes that indemnification or advancement of expenses with respect thereto
may be sought from the Company under this Agreement, notify the Company in
writing of the commencement or threat of commencement thereof, provided the
failure to provide such notification shall not diminish the Indemnitee’s right
to indemnification or advancement of expenses hereunder.

 

(b)                                 To receive indemnification under this
Agreement, the Indemnitee shall submit a written request to the Secretary of
the Company which includes documentation or information that is necessary to
determine whether indemnification is payable under this Agreement and which is
reasonably available to the Indemnitee. 
To the extent not provided pursuant to the terms of this Agreement, any
indemnification requested by the Indemnitee under Section 3, 4, 5 or 6
hereof shall be made by the Company only as authorized in the specific case
upon a determination that indemnification of the Indemnitee is proper in the
circumstances because the Indemnitee has met the applicable standard of conduct
set forth in this Agreement. 
Notwithstanding any provision in the Company’s Certificate of
Incorporation or By-Laws to the contrary, such determination shall be made (i) by
the Board of Directors of the Company by a majority vote of a quorum thereof
consisting of directors who are not parties to such proceeding, or (ii) by
a committee of such directors designated by a majority vote of such directors,
even though less than a quorum, or (iii) in the event such a quorum is not
obtainable, or, even if obtainable a quorum of such directors so directs, by
independent legal counsel in a written opinion to the Board of Directors, a
copy of which shall be delivered to the Indemnitee, or (iv) by the
stockholders or (v) in the event that a change in control has
occurred, by independent legal counsel in a written opinion to the Board of
Directors, a copy of which shall be delivered to the Indemnitee.  Such independent legal counsel shall be
selected by the Board of Directors and approved by the Indemnitee, which
consent shall not be unreasonably withheld, except that in the event that a
change in control has occurred, independent legal counsel shall be selected by
the Indemnitee.  Upon failure of the
Board of Directors so to select such independent legal counsel or upon failure
of the Indemnitee so to approve (or so to select, in the event that a change in
control has occurred), such independent legal counsel shall be selected upon application
to a panel of arbitrators (selected in the manner set forth in Section 8(d) hereof).  The determination of entitlement to
indemnification shall be made and, unless a contrary determination is made,

 

6

 

such indemnification
shall be paid not later than forty-five (45) days after receipt of the written
request of the Indemnitee.

 

(c)                                  Any amounts incurred by the Indemnitee in
connection with a request for indemnification or advancement of expenses hereunder,
under any other agreement, any provision of the Company’s Certificate of
Incorporation and By-Laws or any D&O Insurance (as defined in Section 11),
shall be borne by the Company.

 

(d)                                 Except as set forth herein, the right of
indemnification and advancement of expenses under this Agreement and any
dispute arising hereunder, including but not limited to matters of validity,
interpretation, application and enforcement (including, by way of example, a
dispute that arises because a determination has been made that the Indemnitee
is not entitled to indemnification or because payment has not been timely made
following a determination of entitlement to indemnification or because expenses
are not paid pursuant to Section 7), shall be determined (i) by a
court of competent jurisdiction or (ii) by and through final and binding
arbitration in Washington, D.C., as selected by the party bringing such
judicial proceeding or arbitration.  Any
arbitration shall be conducted in accordance with the commercial arbitration rules then
in effect of the American Arbitration Association before a panel of three
arbitrators, one of whom shall be selected by the Company, the second of whom
shall be selected by the Indemnitee and the third of whom shall be selected by
the other two arbitrators.  If for any
reason arbitration under the arbitration rules of the American Arbitration
Association cannot be initiated, the necessary arbitrator or arbitrators shall
be selected by the presiding judge of the local court of general jurisdiction
in Washington, D.C..  Each arbitrator
selected as provided hereto is required to be serving or to have served as a
director or an executive officer of a corporation whose shares of common stock,
during at least one year of such service, were listed on The NASDAQ Stock
Market or the New York Stock Exchange. 
It is expressly understood and agreed by the parties that any award
entered by the arbitrators may be enforced, without further evidence or
proceedings, in any court of competent jurisdiction.  The determination in any such judicial
proceeding or arbitration shall be made de  novo and the
Indemnitee shall not be prejudiced by reason of a determination (if so made)
pursuant to Section 8(b) that the Indemnitee is not entitled to
indemnification.  If a determination is
made or deemed to have been made pursuant to the terms of Section 8(b) that
the Indemnitee is entitled to indemnification, the Company shall be bound by
such determination and is precluded from asserting that such determination has
not been made or that the procedure by which such determination was made is not
valid, binding and enforceable.  The
Company further agrees to stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement and
is precluded from making any assertions to the contrary.

 

(e)                                  The provisions of Section 8(d) hereof
shall not apply if, and to the extent that, they may be inconsistent with an
undertaking given by the Company (including an undertaking given after the date
of this Agreement) to the Securities and Exchange Commission to submit to a
court of competent jurisdiction the question whether indemnification for
liabilities under the Securities Act of 1933, as amended (the “Securities Act”),
by the Company is against public policy as expressed in the Securities Act, and
to be governed by the final adjudication of such issue.  In such case, the determination by such court
shall be deemed, for purposes of this Agreement, to be a determination pursuant
to Section 8(d) hereof.

 

7

 

(f)                                    To the extent the Indemnitee is
successful in whole or in part in prosecuting or defending any judicial
proceeding or arbitration pursuant to Section 8(d) hereof (including
any judicial proceeding or arbitration initiated by the Indemnitee to enforce a
right to indemnification or advancement of expenses under this Agreement, and
any judicial proceeding or arbitration initiated by the Company to recover an
advancement of expenses pursuant to the terms of an undertaking), the
Indemnitee shall be entitled to be paid any expenses actually and reasonably
incurred in prosecuting or defending such judicial proceeding or arbitration,
and the Company shall reimburse the Indemnitee for any such expenses.

 

9.                                       Presumptions. 
The Secretary of the Company shall, promptly upon receipt of the
Indemnitee’s written request for indemnification, advise in writing the Board
of Directors or such other person or persons empowered to make the
determination as provided in Section 8(b) that the Indemnitee has
made such request for indemnification. 
Upon making such request for indemnification, the Indemnitee shall be
presumed to be entitled to indemnification hereunder and the Company shall have
the burden of proof in making any determination contrary to such
presumption.  If the person or persons so
empowered to make such determination shall have failed to make the requested
determination with respect to indemnification within forty-five (45) days after
receipt by the Company of such request, a requisite determination of
entitlement to indemnification shall be deemed to have been made and the
Indemnitee shall be absolutely entitled to such indemnification, absent actual
and material fraud in the request for indemnification.

 

10.                                 Assumption of Defense. 
In the event the Company is notified of the commencement of or the
threat of commencement of any proceeding against the Indemnitee by reason of
the fact that the Indemnitee is or was an agent of the Company, the Company,
jointly with any other indemnifying party similarly notified, shall be entitled
to assume the defense of such proceeding, with counsel reasonably acceptable to
the Indemnitee, upon the delivery to the Indemnitee of written notice of its
election to do so.  After delivery of
such notice and the approval of such counsel by the Indemnitee, which approval
shall not be unreasonably withheld, the Company shall not be liable to the
Indemnitee under this Agreement for any fees of counsel subsequently incurred
by the Indemnitee with respect to the same proceeding, provided that (a) the
Indemnitee shall have the right to employ the Indemnitee’s own counsel in such
proceeding at the Indemnitee’s expense and (b) if (i) the employment
of counsel by the Indemnitee has been previously authorized in writing by the
Company, (ii) the Company shall have reasonably concluded that there may
be a conflict of interest between the Company and the Indemnitee in the conduct
of any such defense, or (iii) the Company shall not within sixty (60) days
of receipt of notice from the Indemnitee, in fact, have employed counsel to
assume the defense of such proceeding, the fees and expenses of the Indemnitee’s
counsel shall be at the expense of the Company.

 

8

 

11.                                 Insurance.  The Company
may, but is not obligated to, obtain directors’ and officers’ liability
insurance (“D&O Insurance”) as may be or become available in reasonable
amounts from established and reputable insurers with respect to which the
Indemnitee is named as an insured. 
Notwithstanding any other provision of this Agreement, the Company shall
not be obligated to indemnify the Indemnitee for expenses, judgments, fines or
penalties which have been paid directly to the Indemnitee by D&O Insurance.  If the Company has D&O Insurance in
effect at the time the Company receives from the Indemnitee any notice of the
commencement of or of the threat of commencement of any proceeding against the
Indemnitee by reason of the fact that the Indemnitee is or was an agent of the
Company, the Company shall give prompt notice of the commencement of or the
threat of commencement of such proceeding to the insurers in accordance with
the procedures set forth in the policy. 
The Company shall thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of the lndemnitee, all amounts payable as
a result of such proceeding in accordance with the terms of such policy.

 

12.                                 Exceptions.  Any other
provision herein or in the Company’s Certificate of Incorporation or By-Laws to
the contrary notwithstanding, the Company shall not be obligated pursuant to
the terms of this Agreement:

 

(a)                                  Claims Initiated by the Indemnitee. 
To indemnify or advance expenses to the Indemnitee with respect to proceedings
or claims initiated or brought voluntarily by the Indemnitee and not by way of
defense, except to the extent that a proceeding or claim is brought by the
Indemnitee to enforce rights under this Agreement; provided, however,
that such indemnification or advancement of expenses may be provided by the
Company in specific cases if the Board of Directors finds it to be appropriate;
or

 

(b)                                 Unauthorized Settlements. 
To indemnify the Indemnitee under this Agreement for any amounts paid in
settlement of a proceeding effected without the Company’s written consent; the
Company shall not settle any proceeding without the Indemnitee’s written
consent; neither the Company nor the Indemnitee will unreasonably withhold
consent to any proposed settlement; or

 

(c)                                  Certain Matters. 
To indemnify the Indemnitee on account of any proceeding with respect to
(i) payments made to the Indemnitee if it is determined by final,
nonappealable judgment or other final, nonappealable adjudication that such
payments were in violation of law or (ii) which it is determined by final,
nonappealable judgment or other final, nonappealable adjudication that the
conduct of the Indemnitee constituted bad faith or active and deliberate
dishonesty; or

 

(d)                                 Section 16. 
To indemnify the Indemnitee on account of any claim by or on behalf of
the Company for recovery of profits resulting from the purchase and sale or
sale and purchase by the Indemnitee of equity securities of the Company
pursuant to Section 16(b) of the Exchange Act; or

 

(e)                                  Unlawful.  To indemnify
the Indemnitee to the extent such indemnification has been determined pursuant
to Section 8(d) hereof to be unlawful.

 

9

 

13.                                 Nonexclusivity. 
The provisions for indemnification and advancement of expenses set forth
in this Agreement shall not be deemed exclusive of any other rights which the
Indemnitee may have under any provision of law, the Company’s Certificate of
Incorporation or By-Laws, the vote of the Company’s stockholders or disinterested
directors, other agreements or otherwise, both as to action in his or her
official capacity and to action in another capacity while occupying his or her
position as an agent of the Company, and the Indemnitee’s rights hereunder
shall continue after the Indemnitee has ceased acting as an agent of the
Company and shall inure to the benefit of the heirs, executors and
administrators of the Indemnitee.

 

14.                                 Subrogation. 
In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of the Indemnitee
to recover against any person for such liability, and Indemnitee shall execute
all papers required and shall do everything that may be necessary to secure
such rights, including the execution of such documents necessary to enable the
Company effectively to bring suit to enforce such rights.

 

15.                                 Interpretation of Agreement. 
It is understood that the parties hereto intend this Agreement to be
interpreted and enforced so as to provide indemnification to the Indemnitee to
the fullest extent now or hereafter permitted by law.

 

16.                                 Severability; Prior Indemnification
Agreements.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever, (a) the validity, legality and enforceability of the remaining
provisions of the Agreement (including without limitation all portions of any
paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby, and (b) to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, all portions of any paragraph of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that are not
themselves invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal or unenforceable
and to give effect to Section 15 hereof. 
This Agreement shall supersede and replace any prior indemnification
agreements entered into by and between the Company and the Indemnitee and any
such prior agreements shall be terminated upon execution of this Agreement.

 

17.                                 Modification and Waiver. 
No supplement, modification or amendment of this Agreement shall be
binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

18.                                 Successors and Assigns. 
The terms of this Agreement shall bind, and shall inure to the benefit
of, the successors and assigns of the parties hereto.

 

19.                                 Notice.  All notices,
claims, requests, demands and other communications hereunder shall be in
writing and shall be duly given if:  (a) personally
delivered or sent via telecopy, (b) sent by certified mail, return receipt
requested, or (c) sent by nationally recognized overnight courier service
(for next business day delivery), shipping prepaid to the addresses

 

10

 

shown on the signature page of
this Agreement or such other address or addresses as the person to whom notice
is to be given may have previously furnished to the other party in writing in
the manner set forth above.  Notices
shall be deemed given at the time of personal delivery or completed telecopy,
or, if sent by certified mail, three (3) business days after such sending,
or, if sent by nationally recognized overnight courier service, one (1) business
day after such sending.

 

20.                                 Governing Law. 
This Agreement shall be governed exclusively by and construed according
to the laws of the State of Delaware, as applied to contracts between Delaware
residents entered into and to be performed entirely within Delaware, without
giving effect to conflict of laws principles. 
If a court of competent jurisdiction shall make a final determination
that the provisions of the law of any state other than Delaware govern
indemnification by the Company of its directors and executive officers, then
the indemnification provided under this Agreement shall in all instances be enforceable
to the fullest extent permitted under such law, notwithstanding any provision
of this Agreement to the contrary.

 

21.                                 Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement.  Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced as evidence of the
existence of this Agreement.

 

(Signature
Page Follows.)

 

11

 

The parties hereto have
entered into this Indemnification Agreement effective as of the date first
above written.

 

	
   

  	
  UNITED THERAPEUTICS
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1110 Spring Street

  
	
   

  	
   

  	
  Silver Spring, Maryland
  20910

  
	
   

  	
   

  	
  Attn:
  [                                    ]

  
	
   

  	
   

  	
  Telephone:
  [(      )
        -          ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone:
  (        )
            -

  

 

12

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