Document:

ex10-5

 

Exhibit 10.5

AMENDMENT

     THIS AMENDMENT is made as of the 21st day of December, 2000 to the
Executive Employment Agreement (the “Agreement”) between Martine Rothblatt
(“Executive”) and United Therapeutics Corporation (“UT”) dated April 2, 1999.

     WHEREAS, the Board of Directors of UT unanimously approved an amendment to
the Agreement at its December 14, 2000 board meeting;

     NOW THEREFORE, the parties hereby amend the Agreement as follows:

     1.     Section 3.2(a) of the Agreement shall be replaced in its entirety by
the following new Section 3.2(a):

                       “Annual Incentive Compensation. During each year of the term of this
Agreement, options to purchase such number of shares, exercisable for ten years
at 110% of the fair market price at the time of grant, as is equal to, for the
first year, the quotient of one percent of the difference in UT market
capitalization from the date of IPO to the one year anniversary thereof divided
by $18.00. For each year thereafter, commencing with the period beginning
December, 2000 and with the next option grant to be made on January 2, 2002, an
option to purchase such number of shares, valid for ten years and exercisable
at 110% of the fair market price at the time of grant, as is the quotient of
one percent of the rise in market capitalization of UT from December 2000 to
December 2001 calculated using the average Nasdaq closing price during the
month of December of each year, divided by $18.00. Incentive compensation
shall be vested when earned. The maximum incentive compensation that may be
earned shall be capped by the projected market capitalization of UT at the end
of each year under the January 1999 UT Business Plan.”

     In witness whereof, the parties have executed this Amendment effective as
of the date first written above.

	 	 	 
	MARTINE ROTHBLATT	 	
UNITED THERAPEUTICS CORPORATION 

	/s/ Martine Rothblatt	 	
/s/ Fred Hadeed
	
	 	

	 	 	
Fred Hadeed, CFOex10-6

 

Exhibit 10.6

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of January
3, 2000 by and between United Therapeutics Corporation, a Delaware corporation
having its principal offices at 1110 Spring Street, Silver Spring, Maryland
20910 (“United Therapeutics”) and Fred Hadeed, CPA (the “Executive”).

     WHEREAS, United Therapeutics desires to obtain the services of the
Executive, and the Executive is willing to render such services to United
Therapeutics, upon the terms and conditions herein set forth;

     NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows.

     1.     Definitions

             (a)     As used in this Agreement, “Confidential Information” means any
information of whatever kind or form, including without limitation: an idea,
invention, concept, formula, computer program, algorithm, research, device,
method, technique, design, manufacturing process, know how, internal procedure
or method of operation, process, plan, project, picture, drawing, lists of
customers, contracts, contractors or vendors, business or financial data, plans
or accounts, pricing strategies, purchasing data and/or reports, marketing data
and/or reports, business relationships, contractual rights, lists of actual or
prospective investors, industrial or strategic partners and consultants, trade
secrets and other proprietary information of United Therapeutics that becomes
known to Executive, or is developed, examined, enhanced or modified by
Executive as a result of or during the course of Executive’s employment with
United Therapeutics, regardless of source, except to the extent of the
following: (i) information that is or becomes known to the general public
without breach of the nondisclosure obligations of this Agreement; (ii)
information that is customarily disclosed to others without restriction on
subsequent disclosure; (iii) information that is obtained by Executive from a
third party without breach of a nondisclosure obligation and without
restriction on subsequent disclosure; and (iv) information to the limited
extent that disclosure is expressly required by judicial or administrative
order, or otherwise is required by law, provided that Executive gives immediate
notice to United Therapeutics prior to disclosure of such information.

             (b)     As used in this Agreement, “Competing Product” means any product,
system or service, in existence or under development, of any person or
organization other than United Therapeutics which is the same as, similar to,
competes with or has a usage allied to a product, process, system or service
upon which Executive worked (in either a sales or a non-sales capacity) during
the last three years of his or her employment by United Therapeutics, or about
which Executive acquired Confidential Information in the course of his or her
employment with United Therapeutics.

 

 

             (c)     As used in this Agreement, “Competing Organization” means any person
or organization which is engaged in, or about to become engaged in, research
on, or development, production, marketing, leasing, selling, licensing or
servicing of, a Competing Product.

             (d)     As used in this Agreement, “Intellectual Property” means any and all
rights, title, and interest, including but not limited to domestic and foreign
patents, copyrights, trademarks, trade secrets and all Confidential Information
relating to any of the foregoing, in and to all inventions, processes, computer
programs, formulae, photographic, written or artistic works, or other forms of
Intellectual Property which Executive makes, conceives, reduces to practice or
develops, in whole or in part, during the term of this Agreement or after
termination of Executive’s employment with United Therapeutics if the
Intellectual Property is based upon or derived from United Therapeutics’
Confidential Information.

     2.     Employment. Upon the other terms and conditions hereinafter stated,
United Therapeutics agrees to employ the Executive and the Executive agrees to
accept employment by United Therapeutics for the term set forth in Section 3
hereof and in the position and with the duties and responsibilities set forth
in Section 4 hereof. Executive warrants that he is under no restriction that
would prevent him from entering into this Agreement and from complying with all
of its provisions to their fullest extent. If Executive is enjoined or
otherwise prevented by judicial or administrative determination from complying
with the terms of this Agreement, then United Therapeutics may terminate this
Agreement immediately without incurring any further liability.

     3.     Term. The employment of the Executive by United Therapeutics will
commence on January 31, 2000 and end on the second anniversary of such date
(the “Initial Term”), and thereafter shall continue for two additional two-year
terms (the “Additional Terms”), unless and until either party shall give notice
of such party’s intent to terminate not less than 60 days prior to the end of
the then-current Initial Term or Additional Term, which termination shall be
effective at the expiration of said term, or until sooner terminated as
hereinafter set forth.

     4.     Position and Duties.

             (a)     The Executive shall serve as Chief Financial Officer of United
Therapeutics, reporting to United Therapeutics’ CEO, with such duties and
responsibilities as are normally performed by the Chief Financial Officer and
with such additional duties and responsibilities as may be assigned from time
to time by United Therapeutics’ CEO.

             (b)     The Executive shall at all times exert his best efforts and loyalty on
behalf of United Therapeutics and shall devote full time and attention to such
employment. The Executive agrees to abide by all employment guidelines and
policies as may be developed from time to time by United Therapeutics,
including, without limitation, the attached United

 

 

Therapeutics, Inc. Company Manual, United Therapeutics Corporation Securities
Trades by Company Personnel Policy, and the United Therapeutics Corporation
Media and Analysts Policy.

     5.     Compensation and Related Matters.

             (a)     For services rendered under this Agreement, United Therapeutics shall
pay to the Executive an annual base salary of One Hundred Forty Thousand
Dollars ($140,000) (the “Base Salary”), subject to annual increases as
determined by the Board of Directors of United Therapeutics, in its sole
discretion, in an amount not less than ten percent of the then-current Base
Salary. The Base Salary shall be payable semi-monthly or in such other
installments as shall be consistent with United Therapeutics’ payroll
procedures. United Therapeutics shall deduct and withhold all necessary social
security and withholding taxes and any other similar sums required by law or
authorized by the Executive with respect to payment of the Base Salary and all
other amounts and benefits payable under this Agreement.

             (b)     The Executive shall be entitled to participate in any group life,
disability and medical insurance or other benefit plan or arrangement available
generally to the employees of United Therapeutics as determined by the Board of
Directors.

             (c)     The Executive shall be entitled to receive reimbursement for
relocation expenses according to the United Therapeutics Corporation Relocation
Expense Reimbursement Policy.

             (d)     The Executive shall receive a grant of stock options to purchase
shares of the Common Stock of United Therapeutics Corporation pursuant to the
United Therapeutics Corporation Amended and Restated Equity Incentive Plan in
such number as may be recommended by the Compensation Committee of the Board of
Directors and vesting as follows: twenty percent (20%) on commencement of
employment and twenty percent (20%) per year on each anniversary of the
commencement of Executive’s employment. Executive will enter into a separate
Equity Incentive Plan Award Agreement to effect this grant. The Compensation
Committee of the United Therapeutics Board of Directors may, in its sole
discretion, award additional incentive stock option grants to Executive during
the term of this Agreement.

     6.     Expenses. The Executive shall be reimbursed by United Therapeutics for
reasonable travel and other expenses, as approved from time to time by the
Board of Directors, which are incurred and accounted for in accordance with
United Therapeutics’ normal practices.

     7.     Vacation. The Executive shall be entitled during the term of
employment hereunder to three calendar weeks of vacation annually, which
vacation shall be at such time or times and for such period or periods as shall
be mutually agreed upon by the Executive and United Therapeutics’ CEO. The
Executive shall also be entitled to all public holidays observed by United
Therapeutics.

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     8.     Termination of Employment.

             (a)     The Executive’s employment hereunder shall terminate upon the
Executive’s death.

             (b)     United Therapeutics may terminate the Executive’s employment hereunder
under the following circumstances:

                       (i)     If, as a result of the Executive’s incapacity due or other disability
owing to physical or mental illness, the Executive shall have been unable to
perform all of the Executive’s material duties hereunder by reason of illness,
or physical or mental disability or other similar capacity, which inability
shall continue for more than four (4) consecutive months, United Therapeutics
may terminate the Executive’s employment hereunder.

                       (ii)     United Therapeutics may terminate the Executive’s employment
hereunder for “Cause.” For purposes of this Agreement, United Therapeutics
shall have “Cause” to terminate the Executive’s employment hereunder upon the
(A) failure of the Executive (other than for reasons described in Sections 8(a)
and 8(b)(i) hereof) to perform or observe any of the material terms or
provisions of this Agreement; (B) negligent or unsatisfactory performance of
the Executive’s duties under this Agreement and the failure of the Executive,
within 30 days after receipt of notice from United Therapeutics setting forth
in reasonable detail the nature of the Executive’s negligent or unsatisfactory
performance, (i) to provide United Therapeutics with a reasonably satisfactory
explanation of the Executive’s actions (or inaction) and (ii) to correct to the
satisfaction of United Therapeutics any reasonably identified deficiencies; (C)
employment- or profession-related misconduct or other employment- or
profession-related similar action on the part of the Executive; (D) conviction
of the Executive of a crime involving a felony, fraud, embezzlement or the
like; or (E) misappropriation of United Therapeutics funds or misuse of United
Therapeutics’ assets by Executive.

             (c)     Any termination of the Executive’s employment by United Therapeutics
or by the Executive (other than pursuant to Section 8(a) hereof) shall be
communicated by written “Notice of Termination” to the other party hereto in
accordance with Section 19(f) hereof, which shall indicate the specific
termination provision in this Agreement relied upon, if any, and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so
indicated.

             (d)     For purposes of this Agreement, the “Date of Termination” shall mean
(i) if the Executive’s employment is terminated by the Executive’s death, the
date of the Executive’s death; (ii) if the Executive’s employment is
terminated pursuant to Section 8(b)(i) hereof, thirty (30) days after the
Notice of Termination; provided, that the Executive shall not have returned to
the performance of the Executive’s duties on a full-time basis

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during such thirty (30) day period; (iii) if the Executive’s employment is terminated
pursuant to Section 8(b)(ii) hereof, the date specified in the Notice of
Termination (which date, in the case of termination of Executive’s employment solely pursuant to clause (B) of Section
8(b)(ii) by reason of inadequate performance, shall not be sooner than nine
months from the date of the Notice of Termination); and (iv) if the Executive’s employment is terminated
for any other reason, the date on which the Notice of Termination is given.

     9.     Compensation Upon Termination.

             (a)     If the Executive’s employment is terminated by the Executive’s death,
United Therapeutics shall pay to the Executive’s estate or as may be directed
by the legal representatives of such estate, the Executive’s full Base Salary
through the Date of Termination at the rate in effect at the time of the
Executive’s death and all other unpaid amounts, if any, to which the Executive
is entitled as of such date in connection with any fringe benefits or under any
incentive compensation plan or program of United Therapeutics pursuant to
Section 5(c) or 5(d) hereof, at the time such payments are due.

             (b)     During any period that the Executive fails to perform the Executive’s
duties hereunder solely as a result of incapacity due to physical or mental
illness (“disability period”), the Executive shall continue to receive the
Executive’s full base salary through the Date of Termination at the rate in
effect at the time the Notice of Termination is given and all other unpaid
amounts, if any, to which the Executive is entitled as of the Date of
Termination in connection with any fringe benefits or under any incentive
compensation plan or program of United Therapeutics pursuant to Section 5(c) or
5(d) hereof, at the time such payments are due; provided that payments so made
to the Executive during the disability period shall be reduced by the sum of
the amounts, if any, payable to the Executive at or prior to the time of any
such payment under disability benefit plans of United Therapeutics and which
amounts were not previously applied to reduce any such payment.

             (c)     If the Executive shall terminate the Executive’s employment or United
Therapeutics terminates the Executive’s employment for Cause as provided in
Section 8(b)(ii) hereof, United Therapeutics shall pay the Executive the
Executive’s full Base Salary through the Date of Termination at the rate in
effect at the time the Notice of Termination is given, and United Therapeutics
shall have no further obligations to the to the Executive under this Agreement.

             (d)     In the event that Executive’s employment with United Therapeutics is
terminated for any reason within twelve months of its commencement, then, (i)
Executive agrees to reimburse United Therapeutics for the amount of any signing
bonus which Executive received and relocation expense reimbursement as provided
herein paid to Executive or on Executive’s behalf, and (ii) Executive
acknowledges that any stock options granted to Executive, whether vested or
unvested, shall immediately terminate upon the termination of Executive’s
employment.

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     10.   Confidentiality and Nondisclosure.

             (a)     As a material inducement to United Therapeutics to engage Executive’s
services and to pay to Executive compensation for such services to be rendered
to United Therapeutics by Executive (it being understood and agreed by
Executive that such compensation shall also be paid and received in consideration hereof),
Executive covenants and agrees that during the term of this Agreement, and for
a period as long as the Confidential Information shall be maintained in
confidence by United Therapeutics, Executive shall maintain all Confidential
Information in strictest secrecy and guard against unauthorized disclosure, and
Executive shall not directly or indirectly use, sell, transfer, convey,
disseminate, disclose, divulge, publish, copy, duplicate or communicate any
Confidential Information for any purpose other than the purposes of United
Therapeutics, except as generally allowed in the conduct of United
Therapeutics’ business or with the prior written consent of United
Therapeutics.

             (b)     Executive shall obtain the written permission of United Therapeutics
prior to disclosure of any Confidential Information to any person who
previously has not been expressly authorized by United Therapeutics to receive
such Confidential Information. Executive’s duty to obtain United Therapeutics’
consent prior to disclosure shall survive the term of this Agreement and shall
continue until such time as United Therapeutics notifies Executive that United
Therapeutics no longer considers specific information to be confidential.

             (c)     Executive agrees that Executive will not take with Executive any
Confidential Information that is in written, machine readable, model or other
form, including sound or video recordings, computer disks, or any other medium
capable of physical delivery, upon or after the termination of Executive’s
employment with United Therapeutics, for any reason whatsoever, without the
prior written consent of United Therapeutics. Executive also agrees, upon
termination of his employment with United Therapeutics to promptly deliver all
such materials in Executive’s possession or under Executive’s control to United
Therapeutics. Executive further agrees that, upon termination of Executive’s
employment with United Therapeutics, Executive will return to United
Therapeutics any property of United Therapeutics within Executive’s possession
or control, including all work created by Executive or others. The nature of
Executive’s work is such that Executive will be undertaking time-sensitive
projects for United Therapeutics. Such projects cannot easily be re-created by
others. A delay or inability to complete such projects could jeopardize United
Therapeutics’ client relations and goodwill. If Executive’s association with
United Therapeutics terminates for any reason, Executive agrees that even if
there is any subsequent dispute between United Therapeutics and Executive,
Executive shall, pendente lite, deliver to United Therapeutics all copies of
any Confidential Information, documents, computer disks, computer files, or
other such material in Executive’s possession to which United Therapeutics
claims title. United Therapeutics also shall be entitled to other preliminary
mandatory relief, including a writ of replevin or injunction to recover
possession of its property, on such terms as a court deems equitable under the
circumstances.

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             (d)     Executive agrees to report in writing to United Therapeutics, promptly
and in reasonable detail, any notice or claim received by Executive with
respect to any information or Confidential Information disclosed, delivered or
produced under this Agreement.

     11.   Intellectual Property Rights. Because of the highly specialized and
technical nature of the business of United Therapeutics and the nature and
scope of Executive’s employment, Executive agrees that any and all rights, title, and interest in
United Therapeutics’ Intellectual Property shall be the sole and exclusive
property of United Therapeutics, and its respective successors, licensees, and
assigns. In full consideration of the compensation provided to Executive by
United Therapeutics, Executive agrees to each and all of the following:

             (a)     Work Made for Hire. Executive acknowledges and agrees that all work
performed by Executive as an employee of United Therapeutics is a commissioned
“work for hire” within the meaning of United States copyright law which will be
owned solely and exclusively by United Therapeutics. If the work is determined
not to be a “work for hire” or such doctrine is not effective, Executive hereby
irrevocably assigns, conveys and otherwise transfers to United Therapeutics,
and its respective successors, licensees, and assigns, all right, title and
interest worldwide in and to the work and all proprietary rights therein,
including, without limitation, all copyrights, trademarks, design patents,
trade secret rights, moral rights, and all contract and licensing rights, and
all claims and causes of action with respect to any of the foregoing, whether
now known or hereafter to become known. In the event that Executive has any
right in the work which cannot be assigned, Executive agrees to waive
enforcement worldwide of such right against United Therapeutics, its
distributors and licensees or, if necessary, to license such right exclusively,
worldwide to United Therapeutics with the right to sublicense. These rights
are assignable by United Therapeutics.

             (b)     Original Work. Executive agrees that Executive will not include any
copyrighted or patented material owned by a third party in any written,
copyrightable or patentable material furnished or delivered by Executive under
this Agreement without the unconditional written consent of the copyright or
patent owner unless specific written approval of United Therapeutics for
inclusions of such copyrighted or patented material is secured in advance.
Executive also agrees that all work (or tangible expression of an idea) that
Executive creates or contributes to United Therapeutics in the course of
Executive’s employment hereunder will be created solely by Executive, will be
original to Executive, and will be free of any third party claims or interests.

             (c)     Applications for Patent, Copyrights and Trademarks. Executive shall,
if United Therapeutics so decides at its sole discretion and expense, apply for
United States and foreign letters patent, copyrights, and/or trademarks, either
in Executive’s name or as United Therapeutics in its sole discretion may
direct. Executive hereby grants United Therapeutics the exclusive right, and
appoints United Therapeutics as Executive’s attorney-in-fact, to execute and
prosecute an application for domestic and/or foreign patent or other statutory
protection, and Executive shall execute and deliver to United Therapeutics,
without

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charge to United Therapeutics but at United Therapeutics’ expense, such
other documents of registration and recordation, and do such other acts, such
as give testimony in support of Executive’s inventorship, as may be necessary
in the opinion of United Therapeutics to vest in United Therapeutics or any
other party nominated by United Therapeutics, or otherwise to protect, the
exclusive rights conveyed and/or granted to United Therapeutics pursuant to
this Agreement. Executive’s duty to support United Therapeutics’ claim of
rights in patents, copyrights, or trademarks claimed by United Therapeutics,
and resulting from Executive’s service to United Therapeutics as its employee, shall continue for the life of
any such patent, copyright or trademark.

             (d)     Assignment Executive agrees to assign to United Therapeutics and its
respective successors, licensees, and assigns, all of Executive’s rights, title
and interests in and to the Intellectual Property governed by this Agreement,
and all rights, title, and interests in and to United States and foreign
letters patent, copyrights, and trademarks resulting therefrom. Executive
acknowledges this provision and understands fully its implications and meaning.

             (e)     Use. United Therapeutics and its respective successors, licensees,
and assigns, shall have the sole and exclusive right to practice, or to make,
use or sell products, processes or services derived from any discoveries or
creations within the scope of this Agreement, whether or not patentable or
copyrightable under the laws of any jurisdiction, or protected by the trade
secret laws of any jurisdiction.

             (f)     Trade Secret Protection. In the event that United Therapeutics
decides not to pursue patent, copyright or trademark protection for any
discovery or creation made by Executive, and instead decides to protect the
discovery or creation pursuant to the trade secret laws of any jurisdiction,
such decision shall not be construed as a waiver of United Therapeutics’ rights
pursuant to this Agreement. At United Therapeutics’ expense, Executive shall
also take whatever steps are necessary to sustain United Therapeutics’ claim to
such trade secrets, including but not limited to: (i) maintaining the
confidential nature of any such discoveries or creations; and (ii) testifying
and providing other support and substantiation for United Therapeutics’ claims
with regard to the discovery or creation.

             (g)     Reports. With respect to discoveries made by Executive, Executive
shall maintain notebooks and other records adequate to describe such discovery
to others conversant in the subject of the technology and to establish the date
and circumstances of Executive’s discovery. Executive shall notify United
Therapeutics’ CEO of any such discoveries and shall make copies of all
documents or reports relating to such discoveries available to United
Therapeutics. Any discovery shall be reported to United Therapeutics’ CEO
regardless of whether, in Executive’s opinion, a given discovery is of value to
United Therapeutics, or is protectable under patent, copyright or the laws of
any jurisdiction.

             (h)     Infringement Actions. In the event that United Therapeutics shall
bring an infringement suit against any third parties or shall be sued by any
third parties as a result of Executive’s authorship or creation, including any
addition and/or modification of the aforementioned items of Confidential
Information, Executive agrees to cooperate

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reasonably without charge to United Therapeutics, but at its request and expense, in defending against or
prosecuting any such suit. This right shall be cumulative to any other rights
of United Therapeutics hereunder.

     12.   Covenant of Further Assurances. Upon the request of United
Therapeutics, Executive shall execute and deliver such documents and take such
actions as may be reasonably requested in order to carry out the intent and
purposes of this Agreement, including but not limited to executing all
documents necessary or desirable to protect United Therapeutics’ rights in and title to any work (or tangible expression of an
idea) that Executive creates or contributes to United Therapeutics in the
course of Executive’s employment hereunder.

     13.   Restrictive Covenants. As a material inducement to United
Therapeutics to employ Executive and to disclose United Therapeutics’
Confidential Information to Executive, Executive agrees as follows:

             (a)     While employed by United Therapeutics and for a period of one (1) year
following the termination of Executive’s employment with United Therapeutics by
either party, with or without cause, Executive will not accept employment from,
nor render services for, in any capacity whatsoever within the United States,
any Competing Organization, or otherwise engage in any business activity in
which it would be useful or helpful to Executive or others with whom he is
associated, for Executive to use or disclose any Confidential Information of
United Therapeutics, except that Executive may accept employment with a large
Competing Organization whose business is diversified and which has separate and
distinct operating divisions, and which as to part of its business is not a
Competing Organization, provided that, prior to Executive’s acceptance of such
employment, United Therapeutics shall receive separate written assurances
satisfactory, in its sole discretion, to United Therapeutics from such
Competing Organization and from Executive, that Executive will not be employed
by such Competing Organization in a division which, in any aspect of its
operation, develops, produces, markets or sells a Competing Product and that
Executive will not have any responsibilities with respect to which it would be
useful or helpful to Executive or others within said Competing Organization for
Executive to use or disclose any Confidential Information of United
Therapeutics.

             (b)     While employed by United Therapeutics and for a period of one (1) year
following the termination of Executive’s employment with United Therapeutics by
either party, with or without cause, Executive will not accept employment from,
or render services to, any Competing Organization in connection with the
development, manufacture, marketing, sale, merchandising, leasing, licensing,
servicing or promotion of any Competing Product to any customer or potential
customer of United Therapeutics with which Executive dealt personally or with
respect to which Executive rendered services during his or her employment with
United Therapeutics.

             (c)     While employed by United Therapeutics and for a period of one (1) year
following the termination of Executive’s employment with United Therapeutics by
either party, with or without cause, Executive will not hire, attempt to hire,
assist in hiring, or

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cause to be hired by another person or organization, any
person who was an employee of United Therapeutics at any time after Executive
first had contact with another person or organization, whether such contact was
initiated by Executive or such other person or organization, concerning the
possible employment of Executive or others employed by United Therapeutics at
that time by any person or organization other than United Therapeutics. In
addition, for the same period, Executive shall not identify, or furnish any
information about, any other employee of United Therapeutics to any other
person or organization for the purpose of assisting or facilitating the hiring
efforts of such other person or organization.

     14.     Notification of Agreement. Executive agrees that, in the event he
seeks or is offered employment with any other person or organization which, as
to all or any part of its business, is a Competing Organization, prior to the
expiration of the one (1) year period following the termination of Executive’s
employment with United Therapeutics, Executive shall advise such person or
organization of the existence of this Agreement and shall immediately provide
such other person or organization with a complete and accurate copy of this
Agreement. Executive further agrees that United Therapeutics may, in its sole
discretion, notify any such other person or organization of United
Therapeutics’ understanding of the requirements of this Agreement and of such
steps, if any, as United Therapeutics may take to ensure compliance with or
enforcement of this Agreement.

     15.     Assignment. Neither this Agreement nor any of the rights and
obligations of the parties under this Agreement may be assigned, transferred or
otherwise disposed of by Executive without United Therapeutics’ prior written
consent.

     16.     Absence of Conflict. Executive represents that Executive’s
performance of all the terms of this Agreement as an employee of United
Therapeutics does not and will not breach any agreement to keep in confidence
proprietary information acquired by Executive in confidence prior to
Executive’s employment by United Therapeutics.

               Executive has not entered into, and Executive agrees that Executive will
not enter into, any agreement either oral or written in actual or potential
conflict with any provision of this Agreement. Executive will promptly report
any actual or potential conflict to United Therapeutics’ CEO.

     17.     Injunctive Relief. Executive acknowledges that United Therapeutics
will be irreparably harmed if Executive’s obligations under this Agreement are
not specifically enforced, including but not limited to a breach of the
covenants in Sections 10 or 13 above, and that United Therapeutics would not
have an adequate remedy at law in the event of an actual or threatened
violation by Executive of Executive’s obligations. Therefore, Executive agrees
that United Therapeutics shall be entitled to an injunction or any appropriate
decree of specific performance for any actual or threatened violations or
breaches by Executive without the necessity of United Therapeutics showing
actual damages or that monetary damages would not afford an adequate remedy.
Notwithstanding the foregoing, a court shall have the proper power to modify
any of the restrictive covenants in Section 13 above if it is deemed necessary
to achieve an equitable result.

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     18.   Indemnification. Executive agrees to indemnify and hold United
Therapeutics and its officers, directors, licensees and distributors harmless
from and against any and all claims, losses, liabilities, damages, expenses and
costs (including United Therapeutics’ reasonable attorney’s fees and costs)
that result from Executive’s breach of this Agreement.

     19.   Miscellaneous.

             (a)     This agreement constitutes the entire agreement and understanding
between United Therapeutics and Executive concerning the subject matter hereof.
No modification, amendment, termination or waiver of this Agreement shall be
binding unless in writing and signed by a duly authorized officer of United
Therapeutics. Failure of United Therapeutics to insist upon strict compliance
with any of the terms, covenants or conditions hereof shall not be deemed a
waiver of such terms, covenants and conditions.

             (b)     This Agreement shall be binding upon Executive irrespective of
the duration of Executive’s employment with United Therapeutics or the amount
of Executive’s salary or wages.

             (c)     Executive understands, acknowledges and agrees that any
violation by Executive of any of the terms of this Agreement may result in
Executive’s immediate termination.

             (d)     This Agreement shall be construed, interpreted, and applied in
accordance with the laws of the State of Maryland, applying to contracts fully
executed and performed in the State of Maryland. Any action or proceeding
brought to enforce or construe this Agreement or in any way arising out of or
relating to its performance shall be brought in the State of Maryland. Each
party consents to personal jurisdiction and venue in the State of Maryland and
waives any objection thereto. In the event of any such action or proceeding
between the parties, the prevailing party shall be entitled to recover, in
addition to any other relief awarded or granted, its costs and expenses
(including reasonable attorney’s fees) incurred in any such proceeding.

             (e)     Should a court deem any term or provision of this Agreement too broad,
such term or provision will nevertheless be valid and enforceable to the extent
deemed reasonable under the circumstances and the court is empowered to modify
such provision to the extent necessary to accomplish that objective. The
validity or unenforceability of any term or provision of this Agreement will in
no way affect the validity or enforceability of any other term or provision.

             (f)     Notices. All notices, demands, requests or other communications which
may be, or are required to be given, served or sent by any party to any party
pursuant to this Agreement shall be in writing and shall be mailed by first
class, registered or certified mail, return receipt requested, postage prepaid,
or transmitted by hand delivery, telegram or telex and addressed as follows:

11

 

	 	 	 
	If to the Executive:	 	
Fred Hadeed, CPA

6253 Lakeview Drive

Falls Church, Virginia 22041

	If to the Company:	 	
United Therapeutics Corporation

1110 Spring Street

Silver Spring, Maryland 20910

Attn: CEO

	With a copy to:	 	
Paul A. Mahon, Esq.

United Therapeutics Corporation

1110 Spring Street

Silver Spring, Maryland 20910

     20.     Executive hereby acknowledges receipt of a duplicate copy of this
Agreement.

     IN WITNESS WHEREOF the parties have executed this Agreement the date first
above written.

     EXECUTIVE ACKNOWLEDGES THAT BEFORE SIGNING EXECUTIVE HAS HAD AN ADEQUATE
OPPORTUNITY TO READ THIS AGREEMENT AND THAT EXECUTIVE HAS DONE SO AND
UNDERSTAND ITS TERMS AND CONDITIONS. EXECUTIVE ENTERS INTO THIS AGREEMENT WITH
THE INTENT TO BE BOUND BY IT.

	 
	FRED HADEED, CPA 

	/s/ Fred Hadeed
 

	UNITED THERAPEUTICS CORPORATION 

	/s/ Martine Rothblatt

Martine Rothblatt, CEO

12

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