Document:

Warrant to purchase shares of common stock (Heidrick & Struggles, Inc.)

 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER HEREOF THAT
REGISTRATION UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED, AS PROVIDED HEREIN BELOW. 
  
 WARRANT TO PURCHASE 56,250 SHARES 
 OF
THE COMMON STOCK OF 
 DIGITAL INSIGHT CORPORATION 
  
 No. W2003-1 
  
 EFFECTIVE DATE: August 5, 2003 
  
 EXPIRATION DATE: Upon the consummation of an Organic Change (as defined below) or 3 years from the Effective Date, whichever is sooner.  
  
 This certifies that HEIDRICK & STRUGGLES, INC. or its transferees
or assigns (each individually, the “Holder”) for the agreed upon value of $1.00 and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, shall be entitled to purchase from
DIGITAL INSIGHT CORPORATION, a Delaware corporation (the “Company”), having its principal place of business at 26025 Mureau Road, Calabasas, CA 91302, a maximum of Fifty Six Thousand Two Hundred Fifty
(56,250) fully paid and nonassessable shares of the Company’s Common Stock (“Common Stock”) for cash at a price equal to $19.27 per share (the “Exercise Price”) at any time, or from
time to time, from the one year anniversary of the Effective Date and up to and including 5:00 p.m. Pacific time on the Expiration Date, upon the surrender to the Company at its principal place of business (or at such other location as the Company
may advise the Holder in writing) of this Warrant properly endorsed, a Form of Subscription in substantially the form attached hereto duly filled in and signed and, as applicable, upon payment in cash or by check of the aggregate Exercise Price for
the number of shares for which this Warrant is being exercised determined in accordance with the provisions hereof, or the surrender of the right to acquire the number of shares of Common Stock determined in accordance with Section 1.2. The Exercise
Price and the number of shares of Common Stock purchasable hereunder are subject to adjustment as provided in Section 3 of this Warrant. 
  
 The Warrant is being issued pursuant to the Agreement between the Company and the Holder dated as of (date of confirmation letter) (the “Purchase
Agreement”). The Holder of this Warrant is subject to certain restrictions, and entitled to certain rights as set forth in the Purchase Agreement. This Warrant is referred to as the “Warrant” in the Purchase Agreement. 

 This Warrant is subject to the following terms and conditions: 
  
 1. EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES. 

 
 1.1 General. This Warrant is exercisable at the
option of the holder of record hereof at any time or from time, to time, up to the Expiration Date for all or any part of the shares of Common Stock (but not for a fraction of a share) which may be purchased hereunder. The Company agrees that the
shares of Common Stock purchased under this Warrant shall be and are deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which this Warrant, properly endorsed, the completed and
executed Form of Subscription and appropriate payment for such shares shall have each been delivered to the Company at its principal place of business. Certificates for the shares of Common Stock so purchased, together with any other securities or
property to which the Holder is entitled upon such exercise, shall be delivered to the Holder by the Company at the Company’s expense within a reasonable time after the rights represented by this Warrant have been so exercised, and in any
event, within five (5) business days of such exercise. In case of a purchase of less than all the shares which may be purchased under this Warrant, the Company shall cancel this Warrant and execute and deliver a new Warrant or Warrants of like tenor
for the balance of the shares purchasable under the Warrant surrendered upon such purchase to the Holder hereof within a reasonable time. Each stock certificate so delivered shall be in such denominations of Common Stock as may be requested by the
Holder hereof and shall be registered in the name designated by such Holder.  
  
 1.2 Net Issue Exercise. Notwithstanding any provisions herein to the contrary, if the fair market value of one share of the
Company’s Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, the Holder may elect a “Net Issue Exercise” pursuant to which it will receive
shares equal to the value (as determined below) of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Form of Subscription and notice of such
election in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula: 
  

	 X   =
	 	Y (A-B)	  	 
	 	 	A	  	 

  
 Where X = the number
of shares of Common Stock to be issued to the Holder 
  
 Y = the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such exercise) 
  
 A = the fair market value of one share of the Company’s
Common Stock (at the date of such exercise) 
  
 B
= Exercise Price (as adjusted to the date of such exercise). 
  
  

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 For purposes of the above calculation, the fair market value of one share of Common Stock shall be determined by the
Company’s Board of Directors in good faith; provided, however, that where there is a public market for the Company’s Common Stock, the fair market value per share shall be the average of the closing prices of the Company’s Common
Stock quoted on the Nasdaq National Market (or similar system) or on any exchange on which the Common Stock is listed, whichever is applicable, over the five (5) trading day period ending on the trading day immediately preceding the day the Warrant
is being exercised. 
  
 2. SHARES TO BE FULLY PAID; RESERVATION
OF SHARES. The Company covenants and agrees that all shares of Common Stock which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and
free from all preemptive rights of any shareholder and free of all taxes, liens and charges with respect to the issue thereof. The Company further covenants and agrees that, during the period within which the rights represented by this Warrant may
be exercised, the Company will at all times have authorized and reserved, for the purpose of issue or transfer upon exercise of the subscription rights evidenced by this Warrant, a sufficient number of shares of authorized but unissued Common Stock,
or other securities and property, when and as required to provide for the exercise of the rights represented by this Warrant. The Company will take all such action as may be necessary to assure that such shares of Common Stock may be issued as
provided herein without violation of any applicable law or regulation, or of any requirements of any domestic securities exchange upon which the Common Stock may be listed; provided, however, that the Company shall not be required to effect a
registration under Federal or State securities laws with respect to such exercise. The Company will not take any action which would result in any adjustment of the Exercise Price (as set forth in Section 3 hereof) if the total number of shares of
Common Stock issuable after such action upon exercise of all outstanding warrants, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon exercise of all options and upon the conversion of all
convertible securities and other equity purchase rights then outstanding, would exceed the total number of shares of Common Stock then authorized by the Company’s Certificate of Incorporation (the “Company Charter”).

  
 3. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES.
The Exercise Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to time upon the occurrence of certain events described in this Section 3. Upon each adjustment of the Exercise Price,
the Holder of this Warrant shall thereafter be entitled to purchase, at the Exercise Price resulting from such adjustment, the number of shares obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number
of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Exercise Price resulting from such adjustment. 
  
 3.1 Subdivision or Combination of Stock. In case the Company shall at any time subdivide its
outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding shares of Common Stock of the Company
shall be combined into a smaller number of shares (by reverse stock split or otherwise), the Exercise Price in effect immediately prior to such combination shall be proportionately increased. 
  

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 3.2 Dividends in Common Stock, Other Stock, Property, Reclassification. If at any
time or from time to time the Holders of Common Stock (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without payment therefor, 
  
 (a) Common Stock or any shares of stock or other securities
which are at any time directly or indirectly convertible into or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution, 
  
 (b) any cash paid or payable otherwise than as a cash
dividend, or 
  
 (c) Common Stock or additional
stock or other securities or property (including cash) by way of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement, (other than shares of Common Stock issued as a stock split or adjustments in respect of
which shall be covered by the terms of Section 3.1 above), then and in each such case, the Holder hereof shall, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock receivable thereupon, and
without payment of any additional consideration therefor, the amount of stock and other securities and property (including cash in the cases referred to in clause (b) above and this clause (c)) which such Holder would hold on the date of such
exercise had he been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive such shares or all other additional stock and other securities and property. 
  
 3.3 Reorganization, Consolidation, Merger or Sale. If
any recapitalization or reorganization of the capital stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its assets or other transaction shall be effected in such
a way that holders of Common Stock shall be entitled to receive stock, securities, or other assets or property (an “Organic Change”), then, as a condition of such Organic Change, lawful and adequate provisions shall be made
by the Company whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented
by this Warrant) such shares of stock, securities or other assets or property as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the number of shares of such stock immediately
theretofore purchasable and receivable upon the exercise of the rights represented by this Warrant. In the event of any Organic Change, appropriate provision shall be made by the Company with respect to the rights and interests of the Holder of this
Warrant to the end that the provisions hereof (including, without limitation, provisions for adjustments of the Exercise Price and of the number of shares purchasable and receivable upon the exercise of this Warrant) shall thereafter be applicable,
in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof. Prior to the consummation of any such consolidation, merger or sale, the successor entity (if other than the Company) resulting from such
consolidation or the corporation purchasing such assets shall assume by written instrument reasonably satisfactory in form and substance to the Holders executed and mailed or delivered to the registered Holder hereof at the last address of such
Holder appearing on the books of the 
  

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 Company, the obligation to deliver to such Holder such shares of stock, securities or assets as, in
accordance with the foregoing provisions, such Holder may be entitled to purchase. 
  
 3.4 Certain Events. If any change in the outstanding Common Stock of the Company or any other event occurs as to which the other
provisions of this Section 3 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the Holder of the Warrant in accordance with such provisions, then the Board of Directors of the Company shall make an
adjustment in the number and class of shares available under the Warrant, the Exercise Price or the application of such provisions, so as to protect such purchase rights as aforesaid. The adjustment shall be such as will give the Holder of the
Warrant upon exercise for the same aggregate Exercise Price the total number, class and kind of shares as the Holder would have owned had the Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the
event requiring adjustment. 
  
 3.5
Notices of Change. 
  
 (a) Immediately
upon any adjustment in the number or class of shares subject to this Warrant and/or of the Exercise Price, the Company shall give written notice thereof to the Holder, setting forth in reasonable detail and certifying the calculation of such
adjustment. 
  
 (b) The Company shall give
written notice to the Holder at least 10 business days prior to the date on which the Company closes its books or takes a record for determining rights to receive any dividends or distributions. 
  
 (c) The Company shall also give written notice to the Holder
at least 30 business days prior to the date on which an Organic Change shall take place. 
  
 4. ISSUE TAX. The issuance of certificates for shares of Common Stock upon the exercise of the Warrant shall be made without charge to the Holder of the Warrant for any issue tax (other than any applicable
income taxes) in respect thereof; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than that of the then
Holder of the Warrant being exercised. 
  
 5. CLOSING OF
BOOKS. The Company will at no time close its transfer books against the transfer of any warrant or of any shares of Common Stock issued or issuable upon the exercise of any warrant in any manner which interferes with the timely exercise of this
Warrant. 
  
 6. NO VOTING OR DIVIDEND RIGHTS; LIMITATION
OF LIABILITY. Nothing contained in this Warrant shall be construed as conferring upon the Holder hereof the right to vote or to consent or to receive notice as a shareholder of the Company or any other matters or any rights whatsoever as a
shareholder of the Company. No dividends or interest shall be payable or accrued in respect of this Warrant or the interest represented hereby or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have been
exercised. No provisions hereof, in the absence of affirmative action by the holder to purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of the holder hereof, shall give rise to 
  

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 any liability of such Holder for the Exercise Price or as a shareholder of the Company, whether such liability is
asserted by the Company or by its creditors. 
  
 7.
WARRANTS TRANSFERABLE. Subject to compliance with applicable federal and state securities laws, this Warrant and all rights hereunder are transferable, in whole or in part, without charge to the holder hereof (except for transfer taxes), upon
surrender of this Warrant properly endorsed. Each taker and holder of this Warrant, by taking or holding the same, consents and agrees that this Warrant, when endorsed in blank, shall be deemed negotiable, and that the holder hereof, when this
Warrant shall have been so endorsed, may be treated by the Company, at the Company’s option, and all other persons dealing with this Warrant as the absolute owner hereof for any purpose and as the person entitled to exercise the rights
represented by this Warrant, or to the transfer hereof on the books of the Company any notice to the contrary notwithstanding; but until such transfer on such books, the Company may treat the registered owner hereof as the owner for all
purposes. 
  
 8. RIGHTS AND OBLIGATIONS SURVIVE EXERCISE
OF WARRANT. The rights and obligations of the Company, of the holder of this Warrant and of the holder of shares of Common Stock issued upon exercise of this Warrant, shall survive the exercise of this Warrant. 
  
 9. FURTHER REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

  
 (a) Articles and Bylaws. The Company
has made available to Holder true, complete and correct copies of the Company Charter and Bylaws, as amended, through the date hereof. 
  
 (b) Due Authority. The execution and delivery by the Company of this Warrant and the performance of all obligations of the Company
hereunder, including the issuance to Holder of the right to acquire the shares of Common Stock, have been duly authorized by all necessary corporate action on the part of the Company, and the Warrant is not inconsistent with the Company Charter or
Bylaws and constitutes a legal, valid and binding agreement of the Company, enforceable in accordance with its terms. 
  
 10. REPRESENTATIONS AND COVENANTS OF THE HOLDER. 
  
 This Warrant has been entered into by the Company in reliance upon the following representations and covenants of the Holder: 
  
 (a) Investment Purpose. The Warrant and the Common
Stock issuable upon exercise of the Warrant will be acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same
except pursuant to a registration or exemption pursuant to the 1933 Act. 
  
 (b) Private Issue. The Holder understands (i) that the Warrant and the Common Stock issuable upon exercise of this Warrant is not registered under the 1933 Act or qualified under applicable state securities
laws on the ground that the issuance contemplated by 
  

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 this Warrant will be exempt from the registration and qualifications requirements thereof pursuant to
Section 4(2) of the 1933 Act and any applicable state securities laws, and (ii) that the Company’s reliance on such exemption is predicated on the representations set forth in this Section 10. This Warrant and the Common Stock issuable upon
exercise of this Warrant (unless registered under the 1933 Act and under applicable state securities laws) shall include a legend in substantially the form set forth at the beginning of this Warrant relating to such securities laws. 
  
 (c) Disposition of Holders Rights. In no event will
the Holder make a disposition of the Warrant or the Common Stock issuable upon exercise of the Warrant unless and until (i) it shall have notified the Company of the proposed disposition, and (ii) if requested by the Company, it shall have furnished
the Company with an opinion of counsel (which counsel may either be inside or outside counsel to the Holder) satisfactory to the Company and its counsel to the effect that (A) appropriate action necessary for compliance with the 1933 Act has been
taken, or (B) an exemption from the registration requirements of the 1933 Act is available. Notwithstanding the foregoing, the restrictions imposed upon the transferability of any of its rights to acquire Common Stock or Common Stock issuable on the
exercise of such rights do not apply to transfers from the beneficial owner of any of the aforementioned securities to its nominee or from such nominee to its beneficial owner, and shall terminate as to any particular share of Common Stock when (1)
such security shall have been effectively registered under the 1933 Act and sold by the holder thereof in accordance with such registration or (2) such security shall have been sold without registration in compliance with Rule 144 under the 1933
Act, or (3) a letter shall have been issued to the Holder at its request by the staff of the Securities and Exchange Commission or a ruling shall have been issued to the Holder at its request by such Commission stating that no action shall be
recommended by such staff or taken by such Commission, as the case may be, if such security is transferred without registration under the 1933 Act in accordance with the conditions set forth in such letter or ruling and such letter or ruling
specifies that no subsequent restrictions on transfer are required. Whenever the restrictions imposed hereunder shall terminate, as hereinabove provided, the Holder or holder of a share of Common Stock then outstanding as to which such restrictions
have terminated shall be entitled to receive from the Company, without expense to such holder, one or more new certificates for the Warrant or for such shares of Common Stock not bearing any restrictive legend. 
  
 (d) Financial Risk. The Holder has such knowledge and
experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment. 
  
 (e) Risk of No Registration. The Holder understands that if the Company does not register with the
Securities and Exchange Commission pursuant to Section 12 of the 1933 Act, or file reports pursuant to Section 15(d), of the Securities Exchange Act of 1934 (the “1934 Act”), or if a registration statement covering the
securities under the 1933 Act is not in effect when it desires to sell (i) the Warrant, or (ii) the Common Stock issuable upon exercise of the Warrant, it may be required to hold such securities for an indefinite period. The Holder also understands
that any sale of the Warrant or the Common Stock issuable upon exercise of the Warrant which might be made by it in reliance upon Rule 144 under the 1933 Act may be made only in accordance with the terms and conditions of that Rule. 
  

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 (f) Accredited Investor. Holder is an “accredited
investor” within the meaning of Rule 501 of Regulation D under the 1933 Act, as presently in effect. 
  
 11. MODIFICATION AND WAIVER. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought. 
  
 12. NOTICES. Any notice, request or other document required or permitted to be given or delivered to the holder hereof or the Company shall be delivered or shall be sent by an established overnight service
provider (e.g., Federal Express), or registered or certified mail, postage prepaid, to each such holder at its address as shown on the books of the Company or to the Company at the address indicated therefor in the first paragraph of this Warrant or
such other address as either may from time to time provide to the other in accordance with this Section. 
  
 13. BINDING EFFECT ON SUCCESSORS. This Warrant shall be binding upon any corporation succeeding the Company by merger, consolidation or acquisition
of all or substantially all of the Company’s assets. All of the obligations of the Company relating to the Common Stock issuable upon the exercise of this Warrant shall survive the exercise and termination of this Warrant. All of the covenants
and agreements of the Company shall inure to the benefit of the successors and assigns of the holder hereof.  
  
 14. DESCRIPTIVE HEADINGS AND GOVERNING LAW. The description headings of the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware, without giving effect to
principles of conflicts of laws. 
  
 15. LOST
WARRANTS. The Company represents and warrants to the Holder hereof that upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft or
destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant, the Company, at its expense, will make and deliver a new Warrant, of like tenor,
in lieu of the lost, stolen, destroyed or mutilated Warrant.  
  
 16. FRACTIONAL SHARES. No fractional shares shall be issued upon exercise of this Warrant. The Company shall, in lieu of issuing any fractional share, pay the holder entitled to such fraction a sum in cash equal to such fraction
multiplied by the then effective Exercise Price. 
  
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officers,
thereunto duly authorized. 
  

	 DIGITAL INISIGHT CORPORATION
 a Delaware corporation

		
	 By:
	 	 /s/    ELIZABETH
MURRAY        

	 	 	 Name: Elizabeth Murray
 Title: EVP & CFO

  
 ATTEST: 

	
	 /s/    TAE
RHEE        

	Secretary

  

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 EXHIBIT A 
  

SUBSCRIPTION FORM 
  
 Date:
                        , 200     
  
 Digital Insight Corporation 
 26025
Mureau Road 
 Calabasas, CA 91302 
  
 Attn: President 
  
 Ladies and Gentlemen: 
  

	 ̈	 	The undersigned hereby elects to exercise the warrant issued to it by
                                        
(the “Company”) and dated                         
            ,          -         (the “Warrant”) and to purchase
thereunder                  shares of the Common Stock of the Company (the “Shares”) at a purchase price of
                                        
Dollars ($                ) per Share or an aggregate purchase price of
                 Dollars ($                ) (the “Exercise
Price”). Pursuant to the terms of the Warrant the undersigned has delivered the Exercise Price herewith in full in cash or by certified check or wire transfer. 

  

	

	 ̈	 	The undersigned hereby elects to convert
                         percent (        %) of the value of the Warrant
pursuant to the provisions of Section 1.2 of the Warrant. 

  
 Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below: 
  

	 Name:
	 	  

		
	 Address:
	 	  

	
	  

	 Very truly yours,
  

		
	 By:
	 	  

		
	 Title:
	 	  

  

 10EMPLOYMENT AGREEMENT

 Exhibit 10.1 
  
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT is made as of July 16, 2003, by and between DR. BRIAN DICKSON, a resident of the Commonwealth of
Pennsylvania (the “Employee”), and COVALENT GROUP, INC., a corporation organized and existing under the laws of the State of Delaware (the “Company”). This Amended and Restated Employment Agreement (the “Agreement”)
amends and supercedes the Employment Agreement between the parties dated May 1, 2003. 
  
 In consideration of the mutual covenants and obligations contained herein, and intending to be legally bound, the parties, subject to the terms and conditions set forth herein, agree as follows: 
  
 1. Employment and Term. Subject to Section 7, the Company agrees to employ the
Employee and the Employee hereby accepts employment with the Company as its Chief Medical Officer (the “Position”), for the six (6) month period beginning May 1, 2003 and ending October 31, 2003 (the “Term”). The Term shall not
extended unless both parties agree to such extension in a writing signed by both parties. 
  
 2. Duties. During the Term, the Employee shall serve the Company faithfully and to the best of his ability working on the nebivolol NDA or any other Mylan/Bertek related projects. With the execution of this
Agreement, Employee’s 500 hour work requirement described in the prior agreement dated May 1, 2003, Section 2, and related to Section 3 (a) of this Agreement, will be considered fully satisfied. The Position shall report directly to the
President and Chief Executive Officer. 
  
 3. Compensation. The Company
shall pay the Employee, and the Employee hereby agrees to accept, as compensation for all services rendered hereunder and for the Employee’s covenant not to compete as provided for in Section 6 hereof, the compensation set forth in this Section
3. 
  
 a. Salary. The Company shall pay the Employee One
Hundred Fifty Thousand Dollars ($150,000.00) (the “Base Salary”) during the Term. The Base Salary shall be inclusive of all applicable income, social security and other taxes and charges that are required by law to be withheld by the
Company, or are requested to be withheld by the Employee. The Base Salary shall be withheld and paid in accordance with the Company’s normal payroll practice in effect from time to time. 
  
 b. Mylan Project Fees. Beginning on July 16, 2003, and for the
balance of the Term, the Company shall pay Employee Two Hundred Ninety Five Dollars ($295) per hour for each hour worked by Employee on the nebivolol NDA or any other Mylan/Bertek related projects, subject to Mylan continuing to request the services
of Employee. Payment will be made within normal payroll practice on the assumption of a 9 hour work day and subsequently supported by an invoice or timesheet. 
  

c. Other Consulting Projects. For any companies, with the exception of Mylan, where the Company and the client have entered into a consulting
arrangement requiring Employee’s services, Company shall pay Employee at a rate of Two Hundred Ninety Five Dollars ($295) per hour for each hour worked by Employee, subject to the client continuing to request the services of Employee.

  
 d. Stock Options. All stock options outstanding as of
October 31, 2003, shall become fully vested on that date provided that the Employee remains employed throughout the Term. Exercise of 
  

 1 

 stock options shall be governed by the stock options plans pursuant to which such options were granted. 
  
 e. Forgivable Loan. The terms and conditions of the Employee’s
forgivable loan, as outlined in the Employee’s employment letter dated November 21, 2001, shall remain in full force and effect throughout the Term. If the Employee were to remain employed throughout the Term, the remaining principal balance
would be approximately $833.33. 
  
 f. Fringe Benefits. The
Employee shall be entitled to participate through October 31, 2003 in the Company’s benefit programs for full-time employees provided the Employee remains employed by the Company pursuant to the terms of this Employment Agreement. 

 
 g. Reimbursement of Expenses. The Employee shall be reimbursed for
all normal items of travel and entertainment and miscellaneous expenses reasonably incurred by the Employee on behalf of the Company, provided that such expenses are documented and submitted to the Company all in accordance with the reimbursement
policies of the Company as in effect from time to time. 
  
 4.
Confidentiality. The Employee recognizes and acknowledges that the Proprietary Information (as hereinafter defined) is a valuable, proprietary and unique asset of the Company. As a result, both during the Term and thereafter, the Employee
shall not, without the prior written consent of the Company, for any reason either directly or indirectly divulge to any third-party or use for the Employee’s own benefit, or for any purpose other than the exclusive benefit of the Company, any
confidential, proprietary, business and technical information or trade secrets of the Company or of any subsidiary or affiliate of the Company (the “Proprietary Information”) revealed, obtained or developed in the course of the
Employee’s employment with the Company. Proprietary Information shall include, but shall not be limited to: any information relating to methods of research; hardware and software configurations, computer codes or instructions (including source
and object code listings, program logic algorithms, subroutines, modules or other subparts of computer programs and related documentation, including program notation), computer inputs and outputs (regardless of the media on which stored or located)
and computer processing systems, techniques, designs, architecture, and interfaces; the identities of, the Company’s relationship with, the terms of contracts and agreements with, the needs and requirements of, and the Company’s course of
dealing with, the Company’s actual and prospective customers, contractors and suppliers; and any other materials prepared by the Employee in the course of the Employee’s employment by the Company, or prepared by any other employee or
contractor of the Company for the Company or its customers, (including concepts, layouts, flow charts, specifications, know-how, user or service manuals, plans, sketches, blueprints, costs, business studies, business procedures, finances, marketing
data, methods, plans, personnel information, customer and vendor credit information and any other materials that have not been made available to the general public). Nothing contained herein shall restrict the Employee’s ability to make such
disclosures during the course of the Employee’s employment as may be necessary or appropriate to the effective and efficient discharge of the duties required by or appropriate for the Position or as such disclosures may be required by law.
Furthermore, nothing contained herein shall restrict the Employee from divulging or using for the Employee’s own benefit or for any other purpose any Proprietary Information that is readily available to the general public so long as such
information did not become available to the general public as a direct or indirect result of the Employee’s breach of this Section 4. Failure by the Company to mark any of the Proprietary Information as confidential or proprietary shall not
affect its status as Proprietary Information under the terms of this Agreement. 
  

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 5. Property. 
  
 a. All right, title and interest in and to Proprietary Information shall be and remain the sole and exclusive property of the Company. During the Term,
the Employee shall not remove from the Company’s offices or premises any documents, records, notebooks, files, correspondence, reports, memoranda or similar materials of or containing Proprietary Information, or other materials or property of
any kind belonging to the Company unless necessary or appropriate in accordance with the duties and responsibilities required by or appropriate for the Position and, in the event that such materials or property are removed, all of the foregoing
shall be returned to their proper files or places of safekeeping as promptly as possible after the removal shall serve its specific purpose. The Employee shall not make, retain, remove and/or distribute any copies of any of the foregoing for any
reason whatsoever, except as may be necessary in the discharge of the assigned duties, and shall not divulge to any third person the nature of and/or contents of any of the foregoing or of any other oral or written information to which the Employee
may have access or with which for any reason the Employee may become familiar, except as disclosure shall be necessary in the performance of the duties; and upon the termination of the Employee’s employment with the Company, the Employee shall
return to the Company all originals and copies of the foregoing then in the possession, whether prepared by the Employee or by others. 
  
 6. Covenant not to Compete. 
  
 a. The Employee shall not, anywhere in the United States, during the Term, do any of the following directly or indirectly without the prior written
consent of the Company in its sole discretion: 
  
 b. become
interested (as owner, proprietor, promoter, stockholder, lender, partner, co-venturer, director, officer, employee, agent, consultant or otherwise) in any person, firm, corporation, association or other entity engaged in any business that is
competitive with the Business or of the business of any subsidiary or affiliate of the Company as conducted during the Term, or become interested in (as owner, stockholder, lender, partner, co-venturer, director, officer, employee, agent, consultant
or otherwise) any portion of the business of any person, firm, corporation, association or other entity where such portion of such business is competitive with the Business of the Company or the business of any subsidiary or affiliate of the Company
as conducted during the Term (notwithstanding the foregoing, the Employee may hold not more than one percent (1%) of the outstanding securities of any class of any publicly-traded securities of a company that is engaged in business activity
competitive with the Business or the business of any of the Company’s subsidiaries or affiliates as conducted during the Term); 
  
 c. Unless waived in advance in writing by the Company, during the Term and for a period of six months (6) thereafter (the “Restricted Period”)
solicit or call on for a purpose competitive with the Business, either directly or indirectly, any of the companies that the Company has had direct business dealings with during Employee’s employment with the Company, or any supplier or
distributor with whom the Company shall have dealt at any time during the two (2) year period immediately preceding the termination of the Employee’s employment hereunder; 
  
 d. influence or attempt to influence any supplier, distributor, customer or potential customer of the Company to terminate
or modify any written or oral agreement or course of dealing with the Company; 
  
 e. during the Term and for a period of one (1) year thereafter, influence or attempt to influence any employee to terminate or modify any written or oral employment relationship or agreement with the Company;

  

 3 

 f. influence or attempt to influence any person either (A) to terminate or modify the employment,
consulting, agency, distributorship or other arrangement with the Company, or (B) to employ or retain, or arrange to have any other person or entity employ or retain, any person who has been employed or retained by the Company as an employee,
consultant, agent or distributor of the Company at any time during the twelve (12) month period immediately preceding the termination of the Employee’s employment hereunder. 
  
 g. The Employee hereby acknowledges that the limitations as to time, character or nature and geographic scope placed on the
Employee’s subsequent employment by this Section 6 are reasonable and fair and will not prevent or materially impair the Employee’s ability to earn a livelihood. 
  
 7. Termination of Employment. The Employee’s employment hereunder may be terminated upon the occurrence of any one of the events
described in this Section 7 and upon expiration of the Term. Upon termination of the Employee’s employment, the Employee shall be entitled only to such compensation and benefits as described in this Section 7. 
  
 a. Termination for Cause. 
  
 i. The Company may terminate the Employee’s employment
hereunder at any time for “cause” upon written notice to the Employee. For purposes of this Agreement, “cause” shall mean: 
  

	 	(1)	any material breach by the Employee of any of his obligations under this Agreement; 

  

	 	(2)	at the request of Mylan or the client, as described in Sections 3 (b) or 3 (c); 

  

	 	(3)	conduct of the Employee involving any type of disloyalty to the Company or willful misconduct with respect to the Company, including without limitation fraud, embezzlement, theft or
proven dishonesty in the course of the employment, or any attempt by the Employee to secure any personal profit related to the Business and the business opportunities of the Company without the informed prior approval of the Board of Directors;

  

	 	(4)	conviction of a felony; 

  

	 	(5)	commission by the Employee of an intentional tort (i.e., assault, battery, false imprisonment, intentional infliction of emotional distress, or conversion) or an act involving moral
turpitude or constituting fraud; or 

  

	 	(6)	habitual alcohol or substance abuse or addiction. 

  

 4 

 ii. In the event of a termination of the Employee’s employment hereunder pursuant to
Section 7 a., the Employee shall be entitled to receive all accrued but unpaid (as of the effective date of such termination) Base Salary and benefits. All Base Salary and benefits and bonuses shall cease at the time of such termination, subject to
the terms of any benefit or compensation plan then in force and applicable to the Employee. Except as specifically set forth in this Section 7 a., the Company shall have no liability or obligation hereunder by reason of such termination. 

 
 b. Termination Without Cause. 
  
 i. The Company may terminate the Employee’s employment
hereunder at any time during the Term, for any reason, without cause effective upon the date designated by the Company upon written notice to the Employee. 
  
 8. In the event of a termination of the Employee’s employment hereunder pursuant to Section 7 b., the Employee shall be entitled: to receive the Base Salary for the
Term; full vesting of stock options as set forth in paragraph 3.b.; and amortization of the forgiveable loan described in paragraph 3 c. through the Term. 
  
 9. Successors and Assigns. The Company may assign its rights under this Agreement. The Employee may not assign his rights under this Agreement. 
  
 10. Notice. Any notice hereunder by either party shall be given by personal delivery
or by sending such notice by certified mail, return-receipt requested, or by overnight delivery with a reputable courier service, to the other party at the Employee’s last known address according to the Company’s books and records and to
the Company at its principal place of business to the attention of the Chief Financial Offeror at such other address designated by notice in the manner provided in this section. 
  
 11. Entire Agreement; Amendments. This Agreement contains the entire agreement and understanding of the parties hereto relating to
the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature between the parties hereto relating to the employment of the Employee with the Company, except that the
terms of the Employee’s Confidentiality Agreement shall remain in full force and effect. This Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto. 
  
 12. Waiver. The waiver of the breach of any term or provision of this Agreement shall
not operate as or be construed to be a waiver of any other or subsequent breach of this Agreement. 
  
 13. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania, without regard to the principles of conflicts of laws of any jurisdiction.

  
 14. Invalidity. If any provision of this Agreement shall be determined
to be void, invalid, unenforceable or illegal for any reason, then the validity and enforceability of all of the remaining provisions hereof shall not be affected thereby 
  
  

 5 

 15. Section Headings. The section headings in this Agreement are for convenience only; they form no part of this
Agreement and shall not affect its interpretation. 
  
 16. Specific
Enforcement; Extension of Period. 
  
 a. The Employee
acknowledges that the restrictions contained in Sections 5 and 6 hereof are reasonable and necessary to protect the legitimate interests of the Company and its affiliates and that the Company would not have entered into this Agreement in the absence
of such restrictions. The Employee also acknowledges that any breach by the Employee of Sections 5 and 6 hereof will cause continuing and irreparable injury to the Company for which monetary damages would not be an adequate remedy. The Employee
shall not, in any action or proceeding to enforce any of the provisions of this Agreement, assert the claim or defense that an adequate remedy at law exists. In the event of such breach by the Employee, the Company shall have the right to enforce
the provisions of Sections 5 and 6 of this Agreement by seeking injunctive or other relief in any court, and this Agreement shall not in any way limit remedies of law or in equity otherwise available to the Company 
  
 b. The periods of time set forth in Sections 6 hereof shall not include, and
shall be deemed extended by, any time required for litigation to enforce the relevant covenant periods, provided that the Company is successful on the merits in any such litigation. The “time required for litigation” is herein defined to
mean the period of time commencing on the earlier of the Employee’s first breach of such covenants or the service of process upon the Employee and ending on the expiration of all appeals related to such litigation. 
  
 17. Consent to Suit. In the case of any dispute under or in connection with this
Agreement, the Employee may only bring suit against the Company in the Chester County Court of Common Pleas or in the United States District Court for the Eastern District of Pennsylvania. The Employee hereby consents to the jurisdiction and venue
of the courts of the Commonwealth of Pennsylvania and for the Federal District Court for such geographic location, provided that such Federal Court has subject matter jurisdiction over such dispute, and the Employee hereby waives any claim the
Employee may have at any time as to forum non conveniens with respect to such venue. The Company shall have the right to institute any legal action arising out of or relating to this Agreement in any appropriate court and in any jurisdiction. Any
judgment entered against either of the parties in any proceeding hereunder may be entered and enforced by any court of competent jurisdiction. If an action at law or in equity is necessary to enforce or interpret the terms of this Agreement, then
the Company shall be entitled to recover, in addition to any other relief, reasonable attorneys’ fees, costs and disbursements. 
  
 18. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed
to be one and the same instrument. 
  
 [SIGNATURE PAGE FOLLOWS]

  

 6 

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

	 COVALENT GROUP, INC.

		
	By:	 	 /s/    Kenneth M. Borow, M.D.

	 	 	 	 	 Kenneth M. Borow, M.D.
 President and Chief Executive Officer

  

		
	 	 	 /s/    Brian Dickson, M.D.

	 	 	 	 	 BRIAN DICKSON, M.D.

  

 7

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