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Exhibit 10.19    
    

 
 

DON D. WEINHEIMER AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
    

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (as from time to time amended in accordance with the provisions hereof, this  "Agreement'), is entered into as of the 31st day of December, 2007, by and between DON D. WEINHEIMER, whose
address is 31603 Fulshear Creek Trail, Fulshear, Texas 77441 (the "Executive"), KEY ENERGY SERVICES, INC., a Maryland
corporation with executive offices at 1301 McKinney Street, Suite 1800, Houston, Texas 77010 (the "Parent") and KEY ENERGY SHARED
SERVICES, LLC, a Delaware limited liability company (the "Company"). 

        WHEREAS, the Executive and the Parent are parties to the Employment Agreement dated as of October 2, 2006 (the  "Original Employment Agreement"); and 

        WHEREAS, the parties desire to amend and restate the Original Employment Agreement in order to provide market benefits and to establish
consistency among the executives of the Company in the event of a termination in connection with a notice of non-renewal of the Agreement; and 

        WHEREAS, the parties desire to amend and restate the Original Employment Agreement in order to provide for compliance with the provisions
of Internal Revenue Code Section 409A concerning, inter alia, the payment of potential future benefits to the Executive, including enhanced
benefits to the Executive in the event of his termination in connection with a Change in Control, pursuant to the terms of Section 5; and 

        WHEREAS, pursuant to the terms of Section 22 hereof, the Parent desires to assign the Original Employment Agreement to the Company
and Company desires to accept such assignment and to assume the obligations of the Parent under the Original Employment Agreement, as amended by this Agreement; and 

        WHEREAS, pursuant to the terms of Section 22 and subject to the terms thereof, the Executive hereby consents to such assignment;
and 

        WHEREAS, the Executive is willing to serve as the Parent's Senior Vice President, Business Development, Technology and Strategic Planning,
pursuant to the terms and conditions set forth herein; 

        NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements herein contained, the parties agree as follows: 

	1.
	Employment; Term.

        (a)    Commencing
on October 2, 2006, the Company hereby employs the Executive, and the Executive hereby accepts employment by the Company, and accepts appointment as
the Parent's Senior Vice President, Business Development, Technology and Strategic Planning. The Executive shall have the responsibilities, duties and authority commensurate with his position,
including without limitation the general supervision and management of the Parent's and the Company's objectives, policies and programs for worldwide sales, marketing, business development, strategic
planning and operations support, and such other responsibilities, duties, functions and authority as the Chief Executive Officer or, in certain circumstances, the Board shall from time to time
designate that do not effect a material decrease in the responsibilities, importance, scope or dignity of the Executive's position compared with those of such position as of the Commencement Date,
subject, however, to the supervision of the Chief Executive Officer. The Executive will report to the Chief Executive Officer. 

        (b)    The
Executive shall hold such positions with the Company and Parent hereunder until the close of business on January 1, 2010, unless sooner terminated in
accordance with Section 5, and at the close of business on each anniversary of such date, commencing with January 1, 2010, the term of the Executive's employment hereunder shall be
automatically extended for twelve (12) months (unless sooner terminated in accordance with Section 5 hereof) unless either the Executive or the Company 

 

shall
have given written notice (in each case, a "Non-Renewal Notice") to the other that such automatic extension shall not occur, which
Non-Renewal Notice shall have been given no later than ninety (90) days next preceding the relevant Anniversary Date. (The entire period of employment of Executive, until
termination in accordance herewith, is referred to hereby as the "Employment Period"). 

        (c)    The
Executive will devote his full time and his best efforts to the business and affairs of the Company, the Parent, and its Subsidiaries; provided, however, that
nothing contained in this Section 1 shall be deemed to prevent or limit the Executive's right to: (i) make investments in the securities of any publicly-owned corporation; or
(ii) make any other investments with respect to which he is not obligated or required to, and to which he does not in fact, devote managerial efforts that interfere with his fulfillment of his
duties hereunder; or (iii) to serve on boards of directors and to serve in such other positions with non-profit and for-profit organizations as to which the Board may
from time to time consent, which consent shall not be unreasonably withheld or delayed. Reference is made to Section 6 hereof, which contains limitations on some of the above activities. 

        (d)    The
principal location at which the Executive will substantially perform his duties will be the Company's Houston, Texas offices, or as otherwise agreed between the
Chief Executive Officer and Executive. If any agreed change in location would increase the Executive's one-way commuting distance between his then-current principal residence
and the offices to which he is assigned by 20 miles or more, the Company will pay to the Executive, and/or will reimburse the Executive for, each of the following expenses and costs incurred in
connection with the Executive's relocation and will pay to the Executive the bonus specified in clause (vii) below: (i) the excess, if any, of (A) the Executive's aggregate tax
basis in his primary residence at the time of its sale over (B) the proceeds realized by the Executive from such sale net of ordinary and reasonable fees and expenses incurred in connection
with such sale (other than such fees and expenses described in clause (ii) of this sentence), (ii) ordinary and reasonable realtor fees and closing costs incurred in connection with the
sale of the Executive's primary residence, (iii) ordinary and reasonable closing costs incurred in connection with the purchase of the Executive's new primary residence in the vicinity of the
new location at which the Executive is to render his services hereunder, (iv) ordinary and reasonable costs incurred to pack, transport, unpack, and insure the Executive's household furnishings
and effects to his new primary residence, (v) ordinary and reasonable fees for connecting utilities in his new primary residence, (vi) ordinary and reasonable costs for trips to look for
a new residence as well as up to thirty (30) days of temporary housing, and (vii) a cash bonus calculated to pay all of the federal, state and local income and payroll taxes which the
Executive will incur, if any, as a result of (A) the Company's reimbursement of the preceding expenses and (B) the amount of such bonus (that is, a "gross-up" bonus). Each of
the expenses or other items reimbursable under this Section 1(d) shall be reimbursed in a separate payment. It shall be a condition precedent to any payment pursuant to this Section 1(d)
that Executive has been continuously employed by the Company through the date on which such payment is made. 

	2.
	Salary; Bonuses; Expenses.

        (a)    During
the Employment Period, the Company will pay base compensation to the Executive at the annual rate of Two Hundred Fifty Thousand Dollars ($250,000) per year (the  "Base Salary"), payable in substantially equal installments in accordance with the Company's existing payroll practices, but no
less frequently than monthly. The Company will review the Base Salary on a yearly basis following the end of each fiscal year of the Company to determine if an increase is advisable, and the Base
Salary may be increased (but not decreased) at the discretion of the Chief Executive Officer and the Compensation Committee (the "Compensation
Committee") of the Board, taking into account, among other factors, the Executive's performance and the performance of the Company. 

        (b)    The
Executive shall be eligible to participate in all of the Company's cash performance compensation plans (collectively, the "Performance Cash
Compensation Plans") for the Company's executives providing for the payment of cash bonuses or other cash incentives payable upon the 

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achievement
of goals set forth in the Company's strategic plan as developed by the Compensation Committee after consultation with the Chief Executive Officer and the Executive, payable in accordance
with the provisions thereof. The performance goals for the Performance Cash Compensation Plans will be based on objective criteria specified in good faith in advance by the Compensation Committee
after consultation with the Chief Executive Officer and the Executive. The Executive shall also receive such bonuses other than pursuant to the Performance Cash Compensation Plans in such amounts and
at such times as the Compensation Committee, after consultation with the Chief Executive Officer, in its discretion determines are appropriate to recognize extraordinary performance by the Executive.
The Executive's target bonus for each fiscal year will be one hundred percent (100%) of Base Salary. 

        (c)    The
Executive shall be reimbursed by the Company for reasonable travel, lodging, meal, entertainment and other expenses incurred by him in connection with performing his
services hereunder in accordance with the Company's reimbursement policies from time to time in effect. 

	3.
	Equity-Based Incentives.

        (a)    The
Executive shall be eligible to participate in awards of stock options, restricted stock, deferred stock, stock appreciation rights, and other equity-based incentives
(collectively, "Equity-Based Incentives"), at the discretion of the Board or the Compensation Committee. Any performance goals
for the grant of such Equity-Based Incentives will be based on objective criteria mutually negotiated and agreed upon in good faith in advance by the Board or the Compensation Committee after
consultation with the Executive and the Chief Executive Officer. 

	4.
	Benefit Plans; Vacations.

        In
connection with the Executive's employment hereunder, he shall be entitled during the Employment Period (and thereafter to the extent provided in Section 5(f) hereof) to the
following additional benefits: 

        (a)   At
the Company's expense, such fringe benefits as the Company may provide from time to time for its senior management, but in any case, at least the benefits described
on EXHIBIT A hereto. 

        (b)   The
Executive shall be entitled to no less than the number of vacation days in each fiscal year determined in accordance with the Company's vacation policy as in effect
from time to time, but not less than twenty (20) business days in any fiscal year (prorated in any fiscal year during which he is employed hereunder for less than the entire year in accordance
with the number of days in such fiscal year in which he is so employed) and subject to the Company's policies on carryovers and cashouts. The Executive shall also be entitled to all paid holidays and
personal days given by the Company to its senior management. 

        (c)   Nothing
herein contained shall preclude the Executive, to the extent he is otherwise eligible, from participation in all group insurance programs or other fringe benefit
plans which the Company may from time to time in its sole and absolute discretion make available generally to its personnel, or for personnel similarly situated, but the Company shall not be required
to establish or maintain any such program or plan except as may be otherwise expressly provided herein. 

	5.
	Termination, Change in Control and Reassignment of Duties.

        (a)   Termination
by the Company. The Company shall have the right to terminate the Executive's employment under this Agreement and the Employment Period for Cause (as defined
below) at any time without obligation to make any further payments to the Executive hereunder except the compensation described in Section 5(g) hereof. Except as otherwise provided in
Section 5(b) hereof, which Section shall apply in the event the Executive becomes unable to perform his obligations hereunder by reason of Disability (as defined below), the Company shall 

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have
the right to terminate the Executive's employment hereunder and the Employment Period for any reason other than for Cause (including, without limitation, by giving the Executive a
Non-Renewal Notice pursuant to Section 1(b) hereof) only upon at least ninety (90) days prior written notice to him (provided that, in the event the Company gives the
Executive a Non-Renewal Notice pursuant to Section 1(b) hereof, only the 90-day notice period therein provided shall be required). In the event the Company terminates
the Executive's employment hereunder for any reason other than for Disability or Cause (including, without limitation, by giving the Executive a Non-Renewal Notice pursuant to
Section l(b) hereof), then for the purpose of effecting a transition during the ninety (90) day notice period of the Executive's management functions from the Executive to another person
or persons, during such period the Company may reassign the Executive's duties hereunder to another person or other persons. Such reassignment shall not reduce the Company's obligations hereunder to
make salary, bonus and other payments to the Executive and to provide other benefits to him during the remainder of his employment and, if applicable, following the termination of employment.
Notwithstanding a notice of termination that does not, when made, specify Cause, the Company may, during the 90 day notice period (the "Cause Review
Period"), convert the termination to a Cause termination, subject to the procedural safeguards specified in the next paragraph. 

As
used in this Agreement, the term "Cause" shall mean (i) the failure by the Executive to substantially perform the major functions of his
position in a satisfactory manner (other than (A) any such failure resulting from his incapacity due to physical or mental illness or physical injury or (B) any such actual or
anticipated failure after the issuance of a notice of termination by the Executive for Good Reason (as defined below), after a written demand for substantial performance is delivered by the Company to
the Executive that specifically identifies the manner in which the Company believes the Executive has not substantially performed his duties; or (ii) the engaging by the Executive in misconduct
that is, or is reasonably likely to be, materially injurious to the Company, monetarily or otherwise; or (iii) the Executive's conviction or plea of guilty or no contest to a felony (or to a
felony charge reduced to misdemeanor), or, with respect to his employment, to any misdemeanor (other than a traffic violation) or, with respect to his employment, knowing violation of any federal or
state securities or tax laws; or (iv) willful violation of the Key Energy Services, Inc. Amended and Restated Policy Regarding Acquisition, Ownership and Disposition of Company
Securities or the Code of Business Conduct, as same may be amended from time to time. Notwithstanding the foregoing, the Executive's employment shall not be deemed to have been terminated for Cause
unless (A) reasonable notice shall have been given to him setting forth in detail the reasons for the Company's intention to terminate for Cause, and if such termination is pursuant to
clause (i) or (ii) above and any damage to the Company is curable, only if Executive has been provided a period of ten (10) business days from receipt of such notice to cease the
actions or inactions and otherwise cure such damage, and he has not done so (provided that only one such period needs to be provided in any period of three (3) consecutive months);
(B) an opportunity shall have been provided for the Executive to be heard before the Board; and (C) if such termination is pursuant to clause (i) or (ii) above, delivery
shall have been made to the Executive of a notice of termination from the Board finding that in the good faith opinion of a majority of the Board (excluding the Executive, if applicable) he was guilty
of conduct set forth in clause (i) or (ii) above. 

        (b)   Termination upon Disability and Temporary Reassignment of Duties Due to Disability; Termination upon Death

        (i)    If
the Executive becomes totally and permanently disabled during the Employment Period so that he is unable to perform his obligations hereunder by reasons involving
physical or mental illness or physical injury for an aggregate of ninety (90) days (whether or not consecutive) during any period of twelve (12) consecutive months during the Employment 

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Period
("Disability"), then the Executive's employment hereunder and the Employment Period may be terminated by the Company within sixty
(60) days after the expiration of such ninety (90) day period (whether or not consisting of consecutive days), such termination to be effective ten (10) days after written notice
to the Executive. In the event the Company shall give a notice of termination under this Section 5(b) (i), then the Company may reassign the Executive's duties hereunder to another person or
other persons. Such reassignment shall not reduce the Company's obligations hereunder to make salary, bonus and other payments to the Executive and to provide other benefits to him during the
remainder of his employment and, if applicable, following the termination of employment. 

        (ii)   During
any period that the Executive is totally disabled such that he is unable to perform his obligations hereunder by reason involving physical or mental illness or
physical injury, as determined by a physician chosen by the Company and reasonably acceptable to the Executive (or his legal representative), the Company may reassign the Executive's duties hereunder
to another person or other persons, provided if the Executive shall again be able to perform his obligations hereunder prior to the Company's termination of the Executive's employment hereunder and
the Employment Period in accordance with the terms of this Agreement, all such duties shall again be the Executive's duties. The cost of any examination by such physician shall be borne by the
Company. Notwithstanding the foregoing, if the Executive has been unable to perform his obligations hereunder by reasons involving physical or mental illness or physical injury for an aggregate of
ninety (90) days (whether or not consecutive) during any period of twelve (12) consecutive months during the Employment Period, then a determination by a physician of disability will not
be required prior to any such reassignment. Any such reassignment shall not be a termination of employment and in no event shall such reassignment reduce the Company's obligation to make salary, bonus
and other payments to the Executive and to provide other benefits to him under this Agreement during his employment or, if applicable, following a termination of employment. 

        (iii)  The
Executive's employment hereunder and the Employment Period shall automatically terminate immediately upon the death of the Executive. 

        (c)   Termination by Executive.    The Executive's employment hereunder and the Employment Period may be terminated
by the Executive by giving written notice to the Company as follows: (i) at any time for any reason other than Good Reason (including, without limitation, by giving the Company a
Non-Renewal Notice pursuant to Section 1(b) hereof) by notice of at least ninety
(90) days (provided that, in the event the Executive gives the Company a Non-Renewal Notice pursuant to Section 1(b) hereof, only the 90-day notice period therein
provided shall be required); or (ii) at any time for Good Reason, provided that the Executive can only give a notice of resignation for Good Reason in connection with a "Change in Control" of
the Parent (as defined in Exhibit B) beginning on the ninetieth (90th) day after the closing of the transaction or the event constituting a Change in Control of the Parent. In the event of a
termination by the Executive of his employment, the Company may reassign the Executive's duties hereunder to another person or other persons. 

        As
used herein, "Good Reason" shall mean the continued existence from the date of the notice from the Executive referred to below until
after the expiration of the Cure Period of any one or more of only the following circumstances or conditions: 

	(i)
	A
material diminution in the Executive's Base Compensation, authority, duties or responsibilities,

	(ii)
	A
material diminution in the authority, duties or responsibilities of a supervisor to whom the Executive reports (including a requirement that the Executive report to
another individual rather than to the CEO and President of the Parent), 

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	(iii)
	A
material diminution in the budget over which the Executive retains authority,

	(iv)
	A
material change in the geographic location at which the Executive must perform the services required by this Agreement, provided, however, that no change in such
geographic location will be considered material if Executive has received any reimbursement pursuant to Section 1(d) of this Agreement in connection with such relocation; or

	(v)
	Any
other action or inaction by the Company that constitutes a material breach of this Agreement. 

        The
existence of any circumstance or condition shall not constitute Good Reason unless (i) the Executive provided notice to the Company of the existence of the circumstance or
conditions within 90 days of the initial existence of such circumstance or condition, and (ii) the circumstance or condition continued to exist after the last day of the Cure Period. For
purposes of this Section 5(c), the term "Cure Period" means the period of 30 consecutive days beginning on the date notice was given by the Executive of the existence of the circumstance or
condition alleged to be Good Reason. 

        (d)   Severance Compensation. 

	(i)
	Termination By Executive for Good Reason or by the Company for Non-Renewal or Other than for
Cause.    In the event the Executive's employment hereunder is terminated (A) by the Executive for Good Reason or (B) by the Company other than for
Cause, for Disability, or upon Notice of Non-Renewal, the Executive shall be entitled, in addition to the other compensation and benefits herein provided for, to severance compensation in
an aggregate amount equal to two (2) times his Base Salary at the rate in effect on the termination date (but no less than the annual Base Salary specified in Section 2(a)), payable in
twenty-four (24) substantially equal monthly installments commencing at the end of the calendar month in which the termination date occurs. Each monthly installment payment required
under this Section 5(d)(i) shall be payable on or about the first day of the month to which it relates, and the right to any series of separate installment payments under this
Section 5(d)(i) shall at all times be a right to a series of separate payments under Treasury Reg. 1.409A-2(b)(2)(iii).

	(ii)
	Termination following Disability.    In the event the Executive's employment should be terminated by the
Company as a result of Disability in accordance with Section 5(b) hereof, then the Executive shall be entitled, in addition to the other compensation and benefits herein provided for, to
severance compensation in an aggregate amount equal to one (1) times his Base Salary at the rate in effect on the termination date, payable in twelve (12) substantially equal monthly
installments commencing at the end of the calendar month in which the termination date occurs, reduced by the amount of any employer-provided disability insurance proceeds actually paid to the
Executive or for his benefit during such time period.

	(iii)
	Change in Control.    If the Executive's employment is terminated within one (1) year following a
Change in Control of the Parent that is a "change in control event" as defined in Treas. Reg. §1.409A-3(i)(5) and the Executive is entitled to severance compensation pursuant
to Section 5(d)(i) or 5(d)(ii) hereof as a result of such termination, the severance compensation otherwise payable to the Executive (A) shall be increased by an amount (the "Enhanced
Severance Amount") sufficient, when added to the amount payable under Section 5(d)(i) or 5(d)(ii) hereof, to cause the total amount payable as the result of such termination to equal three
(3) times the 

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Base
Salary then in effect plus three (3) times the Executive's annual target cash bonus as provided in Section 2 (b) above and (B) the Enhanced Severance Amount shall be
payable in one lump sum on the effective date of such termination. In the event severance compensation becomes payable in a lump sum pursuant to this Section 5(d)(iii), and if the Executive's
employment is or has been terminated for Disability, such lump sum shall be reduced by a good faith estimate of the aggregate amount of any disability insurance proceeds which will be actually paid to
the Executive or for his benefit (but only those proceeds from disability insurance provided by the Company to the Executive pursuant to Section 4(a) hereof) during the remaining period over
which such severance would otherwise have been paid. 

	(iv)
	Termination for Death.    In the event of the Executive's death during the Employment Period, the Executive's
estate shall not be entitled to any severance compensation.

	(v)
	Termination by Executive other than for Good Reason or by Company for Cause.    In the event of the Executive's
termination by resignation under Section 5(c)(i) (i.e., other than for Good Reason) or by the Company for Cause, the Executive shall not be entitled to any severance under
Section 5(d) or otherwise, any continued benefits under Section 5(f) (other than as required by statute), or any accrued compensation under Section 5(g) (iii) (for prior
year bonuses, to the extent specified in that clause). Under the foregoing situations, the treatment of equity incentives shall be as specified in Section 5(e)(ii), and the Executive shall
receive the accrued compensation described in Section 5(g).

	(vi)
	Release.    Executive agrees that except in the case of a termination resulting from Executive's death, all
payments under Section 5(d), (e), (f), and (g)(iii) and Section 6 are conditioned on the Executive's prior execution and non-revocation of a full release of the Company and
its officers, employees, affiliates and agreements for all claims relating to his employment, compensation, and termination and such other matters as the Company reasonably requests on termination, in
a form provided by the Company, which execution shall not occur earlier than the day after termination of the Executive's employment and not later than 60 days following delivery by the Company
to the Executive of the form for such release; provided, however, that if no form for such release is delivered to the Executive within seven (7) days of the termination of Executive's
employment, this Agreement shall be applied without regard to this Section 5(d)(vi); and provided further, however, that any Release previously executed under this Section 5(d)(vi) will
be null and void if the Company reaches a determination of Cause within the Cause Review Period. If any amount is payable under this Section 5 because of a separation from service that is not
an "involuntary separation from service" as defined in Treas. Reg. § 1.409A-1(n)(1) or a separation from service which, pursuant to Treas. Reg.
§ 1.409A-1(n)(2) is entitled to treatment as an "involuntary separation from service" as so defined, and if a form of release is delivered by the Company to the
Executive within seven (7) days of such separation from service, then any other provision of this Agreement to the contrary notwithstanding, any such amount shall not be payable until the
sixtieth day after the date of such separation from service.

	(vii)
	For
purposes of this Agreement, Executive's employment will not be considered to have terminated unless, as a result of a termination, Executive has had a "separation
from service" (as that term is defined in Treas. Reg. § 1.409A-1(h)) with the "Key Energy Controlled Group." The term "Key Energy Controlled Group" means the group of
corporations and trades or businesses (whether or not incorporated) composed of the Company and every entity or other person which together with the 

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Company
constitutes a single "service recipient" (as that term is defined in Treas. Reg. § 1.409A-1(g)) as the result of the application of Treas. Reg.
§ 1.409A-1(h)(3). 

        (e)   Effect of Termination or Change in Control upon Equity-Based Incentives. 

	(i)
	In
the event the Executive's employment hereunder is terminated by the Company for any reason other than for Cause or Disability (including, without limitation, by
giving the Executive a Non-Renewal Notice pursuant to Section 1(b) hereof), or in the event the Executive should terminate his employment for Good Reason, then any Equity-Based
Incentives held by the Executive which have not vested prior to the effective date of such termination shall immediately vest and shall remain exercisable until the earlier to occur of (x) the
first anniversary of the effective date of such termination and (y) the final stated expiration date of the Equity-Based Incentive. In addition, in the event of such a termination, any
Equity-Based Incentives held by the Executive which have vested prior to the effective date of such termination shall remain exercisable until the earlier to occur of (x) the first anniversary
of the effective date of such termination and (y) the final stated expiration date of the Equity-Based Incentive.

	(ii)
	In
the event the Executive's employment hereunder is terminated by the Company for Cause or is terminated by the Executive other than for Good Reason (including,
without limitation, by giving the Company a Non-Renewal Notice pursuant to Section 1(b) hereof), then effective upon the date such termination is effective, any Equity-Based
Incentives which have not vested prior to the effective date of such termination shall be forfeited. Any Equity-Based Incentives held by the Executive entitling the Executive to retain or purchase
securities of the Company which have vested prior to the effective date of such termination shall remain subject to the terms and provisions of the plan and/or the agreement under which they were
awarded.

	(iii)
	In
the event of the Executive's death while employed by the Company or in the event that the Executive's employment should terminate as a result of Disability, then
any Equity-Based Incentives held by the Executive which have not vested prior to the effective date of such termination shall immediately vest and shall also remain exercisable until the earlier to
occur of (x) the first anniversary of the death of the Executive or the effective date of such termination and (y) the final stated expiration date of the Equity-Based Incentives. In
addition, in the event of such death or such a termination, any Equity-Based Incentives held by the Executive which have vested prior to the effective date of such death or termination shall remain
exercisable until the earlier to occur of (x) the first anniversary of the effective date of such death or termination and (y) the final stated expiration date of the Equity-Based
Incentives.

	(iv)
	In
the event of a conflict between the preceding terms and provisions of this Section 5(e) and any other terms and provisions governing any Equity-Based
Incentives held (now or in the future) by the Executive (including without limitation the terms and provisions contained in the agreements and/or plans pursuant to which such Equity-Based Incentives
were (or will in the future be) granted), the preceding terms and provisions of this Section 5(e) shall control; provided, however, that, if an Equity-Based Incentive does not by its terms
require any exercise, no requirement of exercise shall be implied from the preceding terms and provisions of this Section 5(e). 

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	(v)
	Anything
to the contrary in this Agreement notwithstanding, the final stated expiration date of an Equity Based Incentive shall not be extended beyond the tenth
anniversary of the date on which such Equity-Based Incentive was granted. 

        (f)    Continuation of Benefits. 

	(i)
	Subject
to Section 5(f)(ii) hereof, in the event that Executive's employment hereunder is terminated by the Executive for Good Reason or by the Company for
Disability or other than for Cause (including, without limitation, by giving the Executive a Non-Renewal Notice pursuant to Section 1(b) hereof) and not as a result of the death of
the Executive, the Executive shall continue to be entitled, at the Company's expense, to the post-employment benefits under Section 4, if any, that such benefits provide under their
terms for a period of time following the termination date ending on the first to occur of (I) the second anniversary of the termination date, (II) the last date of eligibility under the
applicable benefits or (III) the date on which the Executive commences full-time employment with another employer. The Company will pay the premiums for COBRA health coverage for
Executive and his covered family members for the period COBRA provides. At such time as the Company is no longer required to provide the Executive with life and/or disability insurance, as the case
may be, the Executive shall be entitled, at the Executive's expense, to convert such life and disability insurance, as the case may be, into individually owned policies, except if and to the extent
such conversion is not available from the provider of such insurance.

	(ii)
	In
the event the Executive's employment hereunder is terminated by the Company within one (1) year of a Change in Control of the Parent (other than a termination
because of the Executive's death) or is terminated by the Company other than for Cause in anticipation of a Change in Control, the Company shall pay to the Executive, in lieu of providing the benefits
contemplated by Section 5(f)(i) above, an amount in cash equal to the aggregate reasonable expenses that the Company would incur if it were to provide such benefits for a period of time
following the termination date ending on the second anniversary of the termination date, which amount shall be paid in one lump sum on the date of such termination.

	(iii)
	In
the event the Executive's employment hereunder is terminated by reason of death, the Executive's spouse and her dependents shall be entitled at the Company's
expense to continued health coverage under COBRA under the Company's group medical and dental plans applicable to executives (with the Company's payment of premiums lasting for a period of
twenty-four months or such shorter period as COBRA provides because of replacement coverage). 

        (b)   Accrued Compensation.    In the event of any termination of the Executive's employment for any reason, the
Executive (or his estate) shall be paid (i) any unpaid portion of his Base Salary through the effective termination date, (ii) for any accrued but unused vacation (payable in an amount
equal to the Base Salary divided by 255 and multiplied by the number of accrued but unused vacation days), (iii) any prior fiscal year bonus earned, but not paid (unless Executive resigns
without Good Reason or is terminated for Cause), (iv) any amounts for expense reimbursement and similar items which have been properly incurred in accordance with the provisions hereof prior to
termination and have not yet been paid, including without limitation any sums due under Sections 2(c), 2(d), and 4(c) hereof, and (v) any Gross-Up Payment which may become
due under the terms of Section 6 hereof. Such amounts shall be paid within ten (10) days of the termination date. 

9

 

        (c)   Director/Officer Resignations.    If the Executive's employment hereunder shall be terminated by him or by the
Company in accordance with the terms set forth herein, then effective upon the date such termination is effective, he will be deemed to have resigned from all positions as an officer and director of
the Company and of any of its Subsidiaries, except as the parties may otherwise agree. 

	6.
	Certain Tax Consequences.

        (a)   Tax
Consequences under Section 280G. 

	(i)
	Whether
or not the Executive becomes entitled to the payments and benefits described in this Section 6, if any of the payments or benefits received or to be
received by the Executive in connection with a change in ownership or control of the Company, as defined in section 280G of the Code (a "Statutory Change in
Control"), or the Executive's termination of employment (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, any
person whose actions result in a Statutory Change in Control or any person affiliated with the Company or such person) (collectively, the "Severance
Benefits") will be subject to any excise tax (the "Excise Tax") imposed under section 4999 of the Code after giving
effect to Section 6(a)(iii), the Company shall pay to the Executive an additional amount equal to the Excise Tax, plus any amount necessary to "gross up" the Executive for additional taxes
resulting from the payments to the Executive by the Company under this Section 6(a)(i) (the "Excise Tax Payment"). Each Excise Tax Payment shall
be made not less than five (5) business days prior to the due date for payment of the Excise Tax.

	(ii)
	Notwithstanding
the foregoing, if it shall be determined that the Executive would be entitled to an Excise Tax Payment, but that if the Severance Benefits could be
reduced by an amount necessary such that the receipt of the Company Payments would not give rise to any Excise Tax (the "Reduced Benefits")  and the
Reduced Benefits would not be less than ninety percent (90%) of the Severance Benefits before such reduction, then no Excise Tax Payment shall
be made to the Executive and the Severance Benefits, in the aggregate, shall be reduced to the Reduced Benefits. To determine the Reduced Benefits, payments shall be reduced in the following order
(1) acceleration of vesting of any stock options for which the exercise price exceeds the then fair market value, (2) any cash severance based on a multiple of Base Salary or Bonus,
(3) any other cash amounts payable to the Executive, (4) any benefits valued as parachute payments; and (5) acceleration of vesting of any equity not covered by (1) above,
unless the Executive elects another method of reduction by written notice to the Company prior to the change of ownership or effective control.

	(iii)
	For
purposes of determining whether any of the Severance Benefits will be subject to the Excise Tax and the amount of such Excise Tax: 

        (A)  all
of the Severance Benefits shall be treated as "parachute payments" within the meaning of Code section 280G(b)(2) if the aggregate present value (determined as
provided in Code Section 280G(d)(4)) of such Severance Benefits equals or exceeds three times the Executive's "Base Amount" (within the meaning
of Code Section 280G(b)(3)), and all "excess parachute payments" within the meaning of Code section 280G(b)(1) shall be treated as subject to the Excise Tax, unless the Executive
receives a written opinion from a nationally recognized law or accounting firm ("280G Advisers") selected by the Compensation Committee or the Board,
and reasonably acceptable to the Executive, that such other payments or benefits (in whole or in part) do not constitute parachute 

10

 

payments,
including by reason of Code section 280G(b)(4)(A), or such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered, within the
meaning of Code section 280G(b)(4)(B), in excess of the "Base Amount" as defined in Code section 280G(b)(3) allocable to such reasonable
compensation, or are otherwise not subject to the Excise Tax; and 

        (B)  the
value of any non-cash benefits or any deferred payment or benefit shall be determined by a certified public accountant or appraisal company of recognized
national standing forming part of or selected by the 280G Advisers and reasonably acceptable to the Executive, in accordance with the principles of Code section 280G(d)(3) and (4). 

	(iv)
	In
the event that the Excise Tax is subsequently determined to be less than the amount taken into account hereunder, the Executive shall repay to the Company, at the
time that the amount of such reduction in Excise Tax is finally determined (the "Reduced Excise Tax"), an amount (the
"Gross-Up Repayment") equal to the sum of (A) the difference of the Excise Tax Payment and the Reduced Excise Tax  plus (B) an amount
representing the difference between (1) the amount paid by the Company to the Executive to "gross up" the Executive for
taxes on payments made by the Company to the Executive in respect of the Excise Tax and (2) the amount which should have been paid to the Executive by the Company to "gross up" the Executive
for taxes on payments made by the Company to the Executive in respect of the Reduced Excise Tax; provided,  however, that in no event shall the Gross-Up
Repayment exceed the actual aggregate cash refunds of, or cash reductions in, taxes paid by the
Executive by virtue of paying the Gross-Up Repayment; and provided, further, that if such refunds or reductions are realized from time to time, the Executive shall make a repayment to the
Company at the time of each such realization equal to the excess of the Gross-Up Repayment due after giving effect to such realization over the Gross-Up Repayment due
immediately prior to giving effect to such realization. The Executive shall (1) take such actions with respect to taxes and tax returns as the Company may from time to time request in order to
obtain such refunds and reductions, including, without limitation, by taking positions on tax returns and filing amended tax returns, (2) provide the Company with copies of all tax returns
filed by the Executive which reflect such refunds or reductions or are otherwise requested by the Company in order to determine the Executive's compliance with the immediately preceding
clause (1), (3) permit the Company to participate in any proceedings relating to such refunds and reductions and (4) take all such other actions as may be reasonably requested by
the Company from time to time in connection with the realization of such refunds or reductions, including, without limitation, borrowing money from the Company (on terms and conditions reasonably
satisfactory to the Executive and the Company, including, without limitation, having the Company make the Executive whole, on an after-tax basis, for any interest costs) so that the
payments made from time to time by the Executive to the Company hereunder maximize (to the extent reasonably possible) such refunds and reductions, the aggregate amount of such payments by the
Executive not to exceed the Gross-Up Repayment (computed without regard to the provisos to the first sentence of this Section 6(a)(iv));  provided, however, that the Company shall bear and directly pay, or shall promptly reimburse the
Executive for, all costs and expenses (including any additional penalties and interest) incurred by the Executive in connection with any actions taken or omitted by the Executive in accordance with
instructions from the Company pursuant to this sentence, and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including any
additional penalties and interest) imposed as a result of the 

11

 

Company's
payment of such costs and expenses. In the event that the Excise Tax is subsequently determined to exceed the amount taken into account hereunder (including by reason of any payment the
existence or amount of which could not be determined at the time of the Excise Tax Payment), the Company shall make an additional Excise Tax Payment in respect of such excess (together with any
interest or penalties payable by the Executive with respect to such excess) at the time that the amount of such excess if finally determined, plus any additional taxes resulting from the payment to
the Executive by the Company for such excess and the interest and penalties thereon. The Executive and the Company shall each reasonably cooperate with the other in connection with any administrative
or judicial proceedings concerning the existence or amount of liability for Excise Tax with respect to the Severance Benefits. 

	(v)
	The
Executive shall give the Company written notice of any determination by the Executive, or any claim by any taxing authority, that he owes Excise Tax on any Severance
Benefit. Such notice shall be given as soon as practicable but no later than ten (10) business days after the Executive makes such determination or is informed of such claim, and shall, to the
extent Executive has or may reasonably obtain such information, apprise the Company of the amount of such Excise Tax and the date on which it is required to be paid. If the Company gives the Executive
written notice at least thirty (30) days prior to the due date for payment of such Excise Tax, or within ten (10) business days of having received the foregoing notice from the Executive
(whichever is later), that it disagrees with or wishes to contest the amount of the Excise Tax, the Company and the Executive shall consult with each other and their respective tax advisors regarding
the amount and payment of any Excise Tax. In the event there is a contest with any taxing authority regarding the amount of the Excise Tax, the Company shall bear and pay directly all costs and
expenses (including additional interest, penalties and legal fees) incurred in connection with any such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis,
to the extent not otherwise paid hereunder, on (x) the Excise Tax Payment (including any interest and penalties with respect thereto) and (y) the Company's payment of the Executive's
costs and expenses hereunder. 

        (b)   Tax Consequences Under Section 409A

	(i)
	In
the event that any amount arising from this Agreement is includable in Executive's gross income for a taxable year of the Executive under Section 409A of the
Internal Revenue Code as the result of the terms of this Agreement and/or the administration of those terms ("the Included Amount") and a 20% additional tax is owed under Section 409A, then the
Company shall pay to the Executive an amount equal to the 20% additional tax imposed under Section 409A on the Included Amount, together with any underpayment penalties and interest (the
"Additional Tax") resulting from the inclusion of the additional amount. The Company also will pay the Executive an additional amount necessary to "gross up" the Executive for additional income taxes
on the Additional Tax payment.

	(ii)
	The
payments required by this Section 6(b) will be made on the earlier of (a) the thirtieth day following the date on which it is finally determined by a
court or administrative agency that the Included Amount was includible in Executive's income as the result of the application of Section 409A(a)(1)(B) to the Included Amount; or (b) the
last day of the Executive's taxable year next following the taxable year in which the Executive remitted the taxes due as the result of the application of Section 409A(a)(1)(B) to the Included
Amount. 

12

 

	(iii)
	It
shall be a condition precedent to the Company's obligations under this Section 6(b) that the Executive (a) has given the Company written notice of any
determination by the Executive, or any claim by any taxing authority, that he owes Additional Tax as the result of the inclusion of the Included Amount; (b) that such notice was given as soon
as practicable but no later than ten (10) business days after the Executive makes such determination or is informed of such claim; (c) that such notice shall, to the extent Executive has
or may reasonably obtain such information, apprise the Company of the amount of such Additional Tax and the date on which it is required to be paid. If the Company gives the Executive written notice
at least thirty (30) days prior to the due date for payment of such Additional Tax, or within ten (10) business days of having received the foregoing notice from the Executive (whichever
is later), that it disagrees with or wishes to contest the inclusion of the Included Amount and/or the amount of the Additional Tax, the Company and the Executive shall consult with each other and
their respective tax advisors regarding the amount and payment of any Additional Tax, and it shall be a further condition precedent to the Company's obligations hereunder that the Executive will take
all reasonable steps requested by the Company to contest the inclusion of the Included Amount and/or the amount of the Additional Tax resulting from such inclusion, provided that in the event there is
a contest with any taxing authority regarding the inclusion and/or the amount of the Additional Tax, the Company shall bear and pay directly all costs and expenses (including additional interest,
penalties and legal fees) incurred in connection with any such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis, to the extent not otherwise paid
hereunder, on the Additional Tax (including any interest and penalties with respect thereto) and the Company's payment of the Executive's costs and expenses hereunder.

 

	7.
	Limitation on Competition.

        The
Executive acknowledges that he will have continuing access to the financial and other confidential information of the Company. As an agreement ancillary to the receipt of such
information and the other undertakings in this Agreement, the Executive covenants as follows: 

        During
the Employment Period, and for such period thereafter (A) as the Executive is entitled to receive severance compensation under this Agreement, or (B) in the event
payment of Enhanced Severance compensation is paid, for a period of three (3) years following the end of the Employment Period, or (C) in the event the Executive's employment is
terminated by the Company for Cause or the Executive terminates his employment for any reason other than Good Reason (including, without limitation, by giving the Company a Non-Renewal
Notice pursuant to Section 1(b) hereof), for a period of twelve months following the Employment Period: 

        (a)   the
Executive shall not, directly or indirectly, without the Company's prior written consent, participate or engage in, whether as a director, officer, employee,
advisor, consultant, investor, lender, stockholder, partner, joint venturer, owner or in any other capacity, any Competitive Business (as defined below) conducted in any Competitive Market Area (as
defined below); provided, however, that the Executive shall not be deemed to be participating or engaging in any such business solely by virtue of (i) his ownership of not more than five
percent of any class of stock or other securities which is publicly traded on a national securities exchange or in a recognized
over-the-counter market or (ii) his engaging in the practice of law, either at a law firm or with another entity (so long as he satisfies his professional obligations to
keep and not use the confidences and Confidential Information of the Company and its affiliates (the "Key Affiliates") and so long as his employment does not include non-legal duties that
are likely to assist a Competitive Business in competing with the Key Affiliates); 

13

 

        (b)   the
Executive shall not, without the Company's prior written consent, (i) solicit (other than by way of generalized employment advertising undertaken in the
ordinary course of business) the service of or employ any employee of the Key Affiliates for the Executive's own benefit or for the benefit of any person or entity other than the Key Affiliates,
(ii) induce any such employee to leave employment with the Key Affiliates, or (iii) employ or cause any other person or entity other than the Key Affiliates to employ any former employee
of the Key Affiliates whose termination of employment with the Key Affiliates occurred less than six (6) months prior to such employment by the Executive or such other person or entity; and 

        (c)   the
Executive shall not, without the Company's prior written consent, (i) induce or attempt to induce any customer, supplier or contractor of the Company to
terminate or breach any agreement or arrangement with the Key Affiliates or otherwise to cease doing business with the Key Affiliates, or (ii) induce or attempt to induce any customer, supplier
or contractor of the Key Affiliates (including any prospective customer, supplier or contractor which the Key Affiliates is actively pursuing prior to the Executive's termination of employment), not
to enter into any agreement or arrangement with the Key Affiliates or not to do business with the Key Affiliates. 

        As
used herein, the term "Competitive Business" shall mean any business: (1) that is competitive with any business (A) which
was conducted by the Company or any of its affiliated companies on the date of termination of Executive's employment hereunder or (B) which, on the date of such termination or during the twelve
months immediately preceding such termination, the Company or any of its affiliated companies was actively investigating with a view to conducting or was actively pursuing a plan to conduct; and
(2) from which the Company and such affiliated companies derive (or reasonably expect to derive) annual revenues of not less than $1,000,000. As used herein, the term
"Competitive Market Area" shall mean any geographic market area (1) if the Company or any of its affiliated companies conducted business in such
geographic market area during the Employment Period or on the date of termination of Executive's employment hereunder, or (2) if, on the date of such termination or during the twelve months
immediately preceding such termination, the Company or any of its affiliated companies was actively investigating with a view to conducting business in such geographic market area or was actively
pursuing a plan to conduct business in such geographic market area. 

        The
Executive agrees and acknowledges that a portion of the consideration to be paid by the Company to the Executive pursuant to this Agreement is in consideration of the covenants under
this Section 7 and that such consideration is fair and adequate, even though the Executive will not receive any
severance compensation in the event he terminates his employment with the Company other than for Good Reason or the Company terminates his employment for Cause. The Executive acknowledges and agrees
that any breach or anticipatory breach by him of any of the provisions of this Section 7 would cause the Company or its affiliates irreparable injury not compensable by monetary damages alone
and that, accordingly, in any such event, the Key Affiliates shall be entitled to injunctions, both preliminary and permanent, enjoining or restraining such breach or anticipatory breach without the
necessity of showing irreparable injury (and the Executive hereby consents to the issuance thereof without bond by a court of competent jurisdiction). 

	8.
	Confidential Information.

        The
Executive acknowledges that during the course of his employment with the Company he will have access to trade secrets, confidential and proprietary information and
know-how of the Key Affiliates ("Confidential Information"). Except in the ordinary course of properly performing his duties for the
Company, the Executive shall not at any time, without the Company's prior written consent while employed or after termination of his employment, disclose, communicate or divulge, or use for the
benefit of himself or of any third party, any of the Confidential Information of the Key Affiliates. In the event the Executive learns during his employment with the Company any trade secrets, 

14

 

confidential
or proprietary information or know-how of any customer, supplier or contractor of the Key Affiliates, the Executive shall maintain the confidence of such information. 

	9.
	Return of Materials.

        Upon
termination of the Executive's employment for any reason, the Executive shall promptly deliver to the Company or, with the Company's consent, destroy all documents and other
materials in the Executive's possession or custody (whether prepared by the Executive or others) that the Executive obtained from the Key Affiliates or its customer, supplier or contractor during the
Employment Period and which relate to the past, present or anticipated business and affairs of the Key Affiliates, including without limitation, any Confidential Information. 

	10.
	Enforceability.

        If
any provision of this Agreement shall be deemed invalid or unenforceable as written, this Agreement shall be construed, to the greatest extent possible, or modified, to the extent
allowable by law, in a manner which shall render it valid and enforceable and any limitation on the scope or duration of any such provision necessary to make it valid and enforceable shall be deemed
to be a part thereof. No invalidity or unenforceability of any provision contained herein shall affect any other portion of this Agreement unless the provision deemed to be so invalid or unenforceable
is a material element of this Agreement, taken as a whole. 

	11.
	Legal Expenses.

        The
Company shall pay the Executive's reasonable fees for legal and other related expenses associated with any disputes arising hereunder or under any other agreements, arrangements or
understandings regarding Executive's employment with the Company (including, without limitation, all agreements, arrangements and understandings regarding bonuses, Equity-Based Incentives, employee
benefits or other compensation issues) if either a court of competent jurisdiction or an arbitrator shall render a final judgment or an arbitrator's final decision in favor of the Executive on the
issues in such dispute, from which there is no further right of appeal. If it shall be determined in such judicial adjudication or arbitration that the Executive is successful on some of the issues in
such dispute, but not all, then the Executive shall be entitled to receive a portion of such legal fees and other expenses as shall be appropriately prorated. 

        For
purposes of this Section 11, the phrase "reasonable fees for legal and other related expenses" shall mean only the reasonable fees incurred by the Executive for legal and
other related expenses, to the extent and only to the extent to which either (a) the reimbursement or payment of such fees and expenses by the Company does not constitute "compensation" within
the meaning of that word where it appears in the phrase "a legally binding right during a taxable year to compensation" in the first sentence of Treas. Reg.
§ 1.409A-1(b)(1); or (b) the reimbursement or payment of such fees and expenses by the Company is a settlement or award resolving bona fide legal claims based on
wrongful termination, employment discrimination, the Fair Labor Standards Act, or worker's compensation statutes, including claims under applicable Federal, state, local, or foreign laws, or for
reimbursements or payments of reasonable attorneys fees or other reasonable expenses incurred by a service provider related to such bona fide legal claims described in Treas. Reg.
§ 1.409A-1(b)(10). 

	12.
	Notices.

        All
notices which the Company is required or permitted to give to the Executive shall be given by registered or certified mail or overnight courier, with a receipt obtained, addressed to
the Executive at his primary residence, or at such other place as the Executive may from time to time designate in writing, or by personal delivery to the Executive, or by facsimile to the Executive
with oral confirmation of his receipt and with a copy immediately sent to the Executive by first class U.S. Mail, and to counsel for the Executive as may be requested in writing by the
Executive from time to time. All notices which 

15

 

the
Executive is required or permitted to give to the Company shall be given by registered or certified mail or overnight courier, with a receipt obtained, addressed to the Company at the address set
forth above, or at such other address as the Company may from time to time designate in writing, or by personal delivery to the Chief Executive Officer of the Company, or by facsimile to the Chief
Executive Officer with oral confirmation of his receipt and with a copy immediately sent to the Chief Executive Officer by first class U.S. Mail, and to counsel for the Company as may be
requested in writing by the Company. A notice will be deemed given upon personal delivery, the mailing thereof or delivery to an overnight courier for delivery the next business day, or the oral
confirmation of receipt by facsimile, except for a notice of change of address, which will not be effective until receipt, and except as otherwise provided in Section 5(a) hereof. 

	13.
	Waivers.

        No
waiver by either party of any breach or nonperformance of any provision or obligation of this Agreement shall be deemed to be a waiver of any preceding or succeeding breach of the
same or any other provision of this Agreement. Any waiver of any provision of this Agreement must be in writing and signed by the party granting the waiver. 

	14.
	Headings; Other Language.

        The
headings contained in this Agreement are for reference purposes only and shall in no way affect the meaning or interpretation of this Agreement. In this Agreement, as the context may
require, the singular includes the plural and the singular, the masculine gender includes both male and female reference, the word "or" is used in the
inclusive sense and the words "including," "includes," and
"included" shall not be limiting. As used herein, the term "Subsidiary" shall mean any corporation or
other entity the voting equity of which the Company or another Subsidiary holds at least fifty percent. 

	15.
	Withholding and Timing of Payments.

        The
Executive acknowledges and agrees that any or all payments under this Agreement may be subject to reduction for tax and other required withholdings. Notwithstanding any provision of
this Agreement, if the payment of any amount under this Agreement would cause an amount to be included in Executive's taxable income under Section 409A of the Internal Revenue Code because the
timing of such payment is not delayed as provided in Section 409A(a) (2) (B) of the Internal Revenue Code, then any such payment that Executive would otherwise be entitled to during the
first six months following the date of Executive's separation from service shall be accumulated and paid on the date that is six months after the date of Executive's separation from service (or if
such payment date does not fall on a business day of the Company, the next following business day of the Company), or such earlier date upon which such amount can be paid without causing any amount to
be included in the Executive's taxable income under Section 409A of the Internal Revenue Code. 

	16.
	Counterparts.

        This
Agreement may be executed in duplicate counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one agreement. 

	17.
	Agreement Complete; Amendments.

        This
Agreement, together with the Exhibits hereto, the agreements referred to herein, and the instruments, agreements, plans, resolutions and other documents pursuant to which any
Equity-Based Incentives are held (now or in the future) by the Executive, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements,
written or oral, with respect thereto. This Agreement may not be amended, supplemented, canceled or discharged except by a written instrument executed by both of the parties hereto, provided, however,
that the immediately foregoing provision shall not prohibit the termination of rights and obligations under this Agreement which termination is made in accordance with the terms of this Agreement. 

16

 
	18.
	Benefit of the Successors and Permitted Assigns of the Respective Parties Hereto.

        This
Agreement and the rights and obligations hereunder are personal to the Company and the Executive and are not assignable or transferable to any other person, firm or corporation
without the consent of the other party, except as contemplated hereby; provided, however, in the event of the sale, merger or consolidation of the Company, whether or not the Company is the surviving
or resulting corporation, the transfer of all or substantially all of the assets of the Company, or the voluntary or involuntary dissolution of the Company, then the surviving or resulting corporation
or the transferee or transferees of the Company's assets shall be bound by this Agreement and the Company shall take all actions necessary to insure that such corporation, transferee or transferees
are bound by the provisions of this Agreement; and provided, further, this Agreement shall inure to the benefit of the Executive's estate, heirs, executors, administrators, personal and legal
representatives, distributees, devisees, and legatees. Notwithstanding the foregoing provisions of this Section 18, the Company shall not be required to take all actions necessary to insure
that a buyer, survivor, transferee or transferees of the Company's assets ("Transferee") are bound by the provisions of this Agreement and such
Transferee shall not be bound by the obligations of the Company under this Agreement if the Company shall have (a) paid to the Executive or made provision satisfactory to the Executive for
payment to him of all amounts which are or may become payable to him hereunder in accordance with the terms hereof and (b) made provision satisfactory to the Executive for the continuance of
all benefits required to be provided to him in accordance with the terms hereof, in each case as if the Executive had been terminated without Cause in anticipation of a Change in Control. 

	19.
	Governing Law.

        This
Agreement will be governed and construed in accordance with the laws of Texas applicable to agreements made and to be performed entirely within such state, without giving effect to
any choice or conflicts of laws principles which would cause the application of the domestic substantive laws of any other jurisdiction. 

	20.
	Survival.

        The
covenants, agreements, representations, warranties and provisions contained in this Agreement that are intended to survive the termination of the Executive's employment hereunder and
the termination of the Employment Period shall so survive such termination. 

	21.
	Interpretation.

        The
terms of this Agreement shall be construed and administered in a manner calculated to avoid the inclusion of any amount in Executive's gross income under Code Section 409A,
and any provisions regarding the timing of payments shall have an effective date of October 2, 2006, as required by Code Section 409A. 

        The
Company and the Executive each acknowledge and agree that this Agreement has been reviewed and negotiated by such party and its or his counsel, who have contributed to its revision,
and the normal rule of construction, to the effect that any ambiguities are resolved against the drafting party, shall not be employed in the interpretation of it. 

	22.
	Assignment and Assumption of Original Employment Agreement; Consent to Assignment.

        The
Parent hereby assigns, transfers and conveys to the Company, and the Company hereby accepts such assignment and assumes the obligations of the Parent contained in the Original
Employment Agreement, as amended by this Agreement. In order to induce the Executive to consent to such assignment and assumption, simultaneously with the execution and delivery of this Agreement, the
Parent has executed and delivered to the Executive the Guaranty dated the date of this Agreement. In consideration of the execution and delivery of such Guaranty by the Parent, and of the terms and
provisions of this Agreement, the Executive hereby consents to such assignment and assumption. 

17

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement, this 31st day of December, 2007. 

	 	 	THE PARENT:

 KEY ENERGY SERVICES, INC.
	

 	
 	

By:	

/s/ RICHARD J ALARIO
 Richard J. Alario
 Chairman, President, and Chief Executive Officer
	

 	
 	
THE COMPANY:

 KEY ENERGY SHARED SERVICES, LLC
	

 	
 	

By:	

/s/ NEWTON W WILSON III
 Newton W. Wilson III
 Vice President
	

 	
 	
THE EXECUTIVE:
 
	

 	
 	
By:	

/s/ DON D WEINHEIMER
 DON D. WEINHEIMER

18

 

 

 
 

EXHIBIT A
  
    Company Paid Coverages    
    

        1.     Medical
and Dental Plan. Comprehensive medical and dental plans available to the Company's senior management, pursuant to which all medical and dental expenses incurred
by the Executive, his spouse and his children will be reimbursed by the Company, through insurance or, in the absence of insurance, directly by the Company, so that the Executive has no
out-of-pocket cost with respect to such expenses. 

        2.     Director
and Officer Liability Insurance. 

        3.     Voluntary
annual physicals at the Executive's option while employed, with a report by the examining physician to the Board regarding the Executive's ability to perform
job related functions. 

19

 
 
 

EXHIBIT B
  
    Definition of "Change in Control" of the Parent    
    

        The occurrence of any of the following shall constitute a "Change in Control" of Key Energy Services, Inc.
(hereinafter, the "Company"): 

        (a)   If
any person (as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as from time to time in effect (the "Exchange
Act"), or any successor provision), other than the Company, becomes the beneficial owner directly or indirectly of more than fifty percent (50%) of the outstanding Common Stock
of the Company, determined in accordance with Rule 13d-3 under the Exchange Act (or any successor provision), or otherwise becomes entitled to vote more than fifty percent (50%) of
the voting power entitled to be cast at elections for directors ("Voting Power") of the Company; 

        (b)   If
the Company is subject to the reporting requirements of Section 13 or 15(d) (or any successor provision) of the Exchange Act, and any person (as defined in
Section 3(a)(9) of the Exchange Act, or any successor provision), other than the Company, purchases shares pursuant to a tender offer or exchange offer to acquire Common Stock of the Company
(or securities convertible into or exchangeable for or exercisable for Common Stock) for cash, securities or any other consideration, if after consummation of the offer, the person in question is tile
beneficial owner, directly or indirectly, of more than fifty percent (50%) of the outstanding Common Stock of the Company, determined in accordance with Rule 13d-3 under the
Exchange Act (or any successor provision); 

        (c)   If
the stockholders or the Board approve any consolidation or merger of the Company (i) in which the Company is not the continuing or surviving corporation unless
such merger is with a Subsidiary at least fifty percent (50%) of the Voting Power of which is held by the Company or (ii) pursuant to which the holders of the Company's shares of Common Stock
immediately prior to such merger or consolidation would not be the holders immediately after such merger or consolidation of at least a majority of the Voting Power of the Company; 

        (d)   The
stockholders or the Board shall have approved any sale, lease, exchange or other transfer (in one transaction or a series of transactions) of all or substantially
all of the assets of the Company; 

        (e)   Upon
the election of one or more new directors of the Company, a majority of the directors holding office, including the newly elected directors, were not nominated as
candidates by a majority of the directors in office immediately before such election. As used in this definition of "Change in Control," "Common Stock"
means the Common Stock, or if changed, the capital stock of the Company as it shall be constituted from time to time entitling the holders thereof to share generally in the distribution of all assets
available for distribution to the Company's stockholders after the distribution to any holders of capital stock with preferential rights. 

20

QuickLinks

Exhibit 10.19

DON D. WEINHEIMER AMENDED AND RESTATED EMPLOYMENT AGREEMENT

EXHIBIT A Company Paid Coverages

EXHIBIT B Definition of "Change in Control" of the ParentExhibit 10.45

 

Pursuant to 17 C.F.R §240.24b-2, confidential
information (indicated as [***]) has been omitted and has been filed separately
with the Securities and Exchange Commission pursuant to a Confidential
Treatment Application filed with the Commission.

 

Distribution Agreement

 

THIS AGREEMENT is made as of March 20, 2000 (the “Effective
Date”), by and between United Therapeutics Corporation (“UT”), a Delaware
corporation, 1110 Spring Street, Silver Spring, Maryland and Olsten Health
Services (Quantum) Corp., doing business as Olsten Health Services or Gentiva
Health Services (“DISTRIBUTOR”), a Delaware corporation, 175 Broad Hollow Road,
Melville, NY 11747.

 

Recitals

 

	
  A.

  	
   

  	
  WHEREAS, UT has
  developed triprostenol, a pharmaceutical product for the treatment of
  pulmonary hypertension to be marketed worldwide under the brand name UNIPROSTTM
  (the “UT Product”);

  
	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  WHEREAS, UT has entered
  into an agreement with MiniMed, Inc., a Delaware corporation, pursuant
  to which UT will purchase from MiniMed, Inc. infusion pumps and
  consumable products, supplies or other goods which are used in connection
  with infusion pumps for the delivery of UNIPROSTTM, which supplies
  include, without limitation infusion sets with catheters and medication
  reservoirs (the “MiniMed Product”);

  
	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  WHEREAS, DISTRIBUTOR
  has represented that it possesses the necessary expertise, financial
  resources and marketing organization to promote and sell the UT Product and
  the MiniMed Product (together, the UT Product and the MiniMed Product shall
  be referred to herein as the “Products”) and desires to acquire from UT the
  right to sell, market, distribute and maintain the Products in the Territory
  (as hereinafter defined);

  
	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  WHEREAS, UT is willing
  to appoint DISTRIBUTOR and DISTRIBUTOR is willing to accept appointment, as a
  distributor of the Products in the Territory; and

  
	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  WHEREAS, the parties
  hereto believe that the business relationship regarding the Products and
  related support will be of mutual advantage.

  

 

NOW, THEREFORE, in consideration of the
mutual promises and covenants hereinafter set forth, the parties agree as
follows:

 

 

 

 

 

Article 1.0            INTRODUCTORY PROVISIONS

 

	
  1.1

  	
   

  	
  Defined
  Terms.  The following terms, when
  used in capitalized form in this Agreement, shall have the meanings set forth
  below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  “Agreement”
  shall mean this Distribution Agreement entered into by and between UT and
  DISTRIBUTOR as of the Effective Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  “Affiliate”
  when used with reference to either Party shall mean any corporation controlling,
  controlled by or under common control with the said Party and any officer,
  director or employee of such corporation, as the case may be.  For purposes hereof, “control” shall mean
  ownership, directly or indirectly, of more than fifty percent (50%) of the
  securities having the right to vote for the election of directors, in the
  case of a corporation, and more than fifty percent (50%) of the beneficial
  interest in the capital, in the case of a business entity other than a
  corporation.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  “Best
  Efforts” shall mean those efforts that would be made by a reasonably prudent
  business person acting in good faith and in the exercise of reasonable
  commercial judgment.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  “Clinical
  Trial Patients” shall mean Included Patients who are enrolled in clinical
  trials relating to UT Product prior to Commercial Launch.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
  “Commercial
  Launch” shall mean the date on which UT first makes all Products available
  for commercial sale, after the receipt of all applicable government and
  regulatory approvals required to be obtained by UT or its suppliers prior to
  commercial sale of the Products.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)

  	
  “Confidential
  Information” shall mean all information disclosed by either party
  (“disclosing party”) to the other party (“receiving party”), regardless of
  the form in which it is disclosed, including information relating to the
  disclosing party’s markets, product specific payer policies, databases,
  customers, products, patents, inventions, procedures, methods, designs,
  strategies, plans, assets, liabilities, prices, costs, revenues, profits,
  organization, employees, agents, resellers or business in general, and with
  respect to UT as disclosing party, information embodied in the Products.  The following shall not be considered
  Confidential Information:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  Information which is or
  becomes in the public domain through no fault or act of the receiving party;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  Information which was
  independently developed by the receiving party without the use of or reliance
  on Confidential Information;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (iii)

  	
  Information which was
  provided to the receiving party by a third party under no duty of
  confidentiality to the disclosing party; or

  

 

2

 

	
   

  	
   

  	
   

  	
  (iv)

  	
  Information which is
  required to be disclosed by law, rule, regulation or governmental agency,
  provided, however, prompt prior notice thereof shall be given to the
  disclosing party.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (g)

  	
  “Effective
  Date” shall mean the date first above written.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h)

  	
  “Force
  Majeure” shall mean any event, not existing as of the Effective Date and not
  reasonably within the control of the Parties as of such date, which, in whole
  or in material part, prevents or makes commercially unreasonable one Party’s
  performance of its obligations under this Agreement.  Force Majeure shall include, without
  limitation: fire, storm, earthquake, flood, acts of State or other
  governmental action, war or civil unrest, labor dispute, inability to obtain
  labor or materials, and prolonged shortage of energy or any other supplies.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  “Included
  Patients” shall mean those individuals diagnosed with pulmonary hypertension
  (or any other condition which shall have been approved by the United States
  Food and Drug Administration as an approved indication for UT Product), and
  whom DISTRIBUTOR shall have accepted (at its sole discretion) on to its
  service as its patient.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (j)

  	
  “NCIP
  Patient” (Non-collecting Included Patient) shall mean any Included Patient
  who has no source of third party payment or reimbursement either for UT
  Product or for MiniMed Product and who is not a Patient Assistance Program
  Patient, and who fails to pay for Products at DISTRIBUTOR’s usual and
  customary charge for Products after DISTRIBUTOR uses its customary Best
  Efforts to collect such payment from such patient for at least a 90 day
  period.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (k)

  	
  “PAP
  Patient” (Patient Assistance Program Patient) shall mean any Included Patient
  who is enrolled in the Patient Assistance Program as established by UT from
  time to time.  The currently anticipated
  criteria for this program are described on Attachment C.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (1)

  	
  “Price”
  shall mean the respective price for the respective Product as set forth on
  Attachment A hereto, subject to the terms and conditions reflected on
  Attachment A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (m)

  	
  “MiniMed
  Product” shall mean infusion pumps and consumable products, supplies or other
  goods developed by MiniMed, Inc. which are medically necessary and used
  in connection with infusion pumps for the delivery of UNIPROSTTM,
  which supplies include, without limitation infusion sets with catheters and
  medication reservoirs.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (n)

  	
  “UT
  Trademark” shall mean any of the UT trademarks, logotypes and trade names
  listed on Attachment B hereto, as such Attachment may be modified from time
  to time by UT and communicated in writing by UT to DISTRIBUTOR during the
  term of this Agreement.

  

 

3

	
   

  	
   

  	
  (o)

  	
  “Party”
  shall mean either of the two parties to this Agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (p)

  	
  “Products”
  shall mean both the UT Product and the MiniMed Product.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (q)

  	
  “Territory”
  shall mean the fifty states, territories and possessions of the United States
  only, unless otherwise expressly agreed in writing by the Parties.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (r)

  	
  “UT
  Product” shall mean triprostenol, a pharmaceutical product for the treatment
  of pulmonary hypertension to be marketed in the Territory under the brand
  name UNIPROSTTM.

  

 

	
  1.2

  	
   

  	
  Other
  Rules of Interpretation.  Unless the context clearly indicates
  otherwise, the following rules shall govern the interpretation of this
  Agreement:

  

 

	
   

  	
   

  	
  (a)

  	
  The
  definitions of all terms defined herein shall apply equally to the singular,
  plural, and possessive forms of such terms;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  All
  references herein to “days” shall mean calendar days; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  All
  references to “Sections” shall mean the corresponding Sections of this
  Agreement.

  

 

Article 2.0            REPRESENTATIONS AND WARRANTIES

 

	
  2.1

  	
   

  	
  Authority.  Each Party represents and warrants that it
  possesses all corporate power and authority necessary to enter into this
  Agreement and to perform its obligations under this Agreement.  All corporate acts and other proceedings
  required to be taken by or on the part of each Party to authorize it to
  perform its obligations under this Agreement have been duly and properly
  taken.  This Agreement has been duly
  executed and delivered by each Party and constitutes legal, valid and binding
  obligations of each Party enforceable in accordance with its terms, subject
  to the application of general principles of equity.

  
	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  No
  Conflicts.  Each Party
  represents and warrants that the execution and performance of this Agreement
  by each Party will not conflict with or violate any other agreement or
  obligation binding on it.

  
	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Approvals.  Except as expressly provided herein, each
  Party represents and warrants that no approval, authorization, consent or
  other order or action of or filing with any court, administrative agency or
  other governmental authority is required for the execution and delivery by
  such Party of this Agreement or its consummation of the transactions
  contemplated by this Agreement.

  
	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  Debarment
  Certification Requirements.  Each Party certifies that it has not been
  debarred under the provisions of the Generic Drug Enforcement Act of 1992, 21
  U.S.C. § 335(a) and (b).  In the
  event that during the term of this Agreement, either Party (i) becomes
  debarred or (ii) receives notice of an action or threat of an 

  

 

 

4

	
   

  	
   

  	
  action
  with respect to its debarment, such Party shall notify the other Party
  immediately.  Each Party hereby
  certifies that it has not and will not use in any capacity the services of
  any individual, corporation, partnership or association which has been
  debarred under 21 U.S.C. § 335(a) and (b).  In the event that either Party becomes
  aware of the debarment or threatened debarment of any individual,
  corporation, partnership or association providing services to the other Party
  which directly or indirectly relate to activities under this Agreement, the
  other Party shall be immediately notified.

  

 

Article 3.0            APPOINTMENT

 

	
  3.1

  	
   

  	
  Scope;
  Non-exclusive.  UT hereby
  appoints DISTRIBUTOR, and DISTRIBUTOR hereby accepts such appointment, as a
  distributor of the Products during the term of this Agreement, subject to the
  terms and conditions of this Agreement. 
  This appointment is non-exclusive, and UT reserves the right to
  appoint additional distributors in the Territory and to distribute the
  Products in the Territory itself.

  
	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Subdistributors.  DISTRIBUTOR shall not, without the prior
  written approval of UT, appoint any distributors or agents to act on behalf
  of DISTRIBUTOR (collectively, “Subdistributors”) to promote and/or distribute
  the Products within the Territory, other than any of its Affiliates.  DISTRIBUTOR shall at all times remain fully
  liable for the performance of any approved subdistributors and DISTRIBUTOR
  shall provide UT with a written acknowledgement executed by each
  Subdistributor that it has read this Agreement and agrees to be bound by its
  terms and conditions, including those contained in the attachments hereto.

  
	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  Sales
  Outside the Territory. 
  DISTRIBUTOR shall not distribute, sell or otherwise provide the
  Products outside of the Territory and shall not advertise, promote or solicit
  customers for the Products outside the Territory.

  

 

Article 4.0            OBLIGATIONS OF DISTRIBUTOR

 

	
  4.1

  	
   

  	
  Distribution
  Promotion. 
  DISTRIBUTOR shall use its Best Efforts to fund and support ongoing
  promotion of its distribution of the Products, consistent with DISTRIBUTOR’s
  normal funding and support for its overall distribution activities; provided,
  however, UT shall approve in advance any marketing material used by
  DISTRIBUTOR other than the UT marketing material provided by UT to
  DISTRIBUTOR pursuant to Section 5.3. 
  Such Best Efforts shall include, but not be limited to:

  

 

	
   

  	
  (a)

  	
   

  	
  Maintaining throughout
  the Territory adequate marketing, sales and order-fulfillment staffs who are
  adequately trained. The Parties acknowledge that this obligation requires
  DISTRIBUTOR to have the capability to provide the foregoing services
  throughout the Territory, but does not require DISTRIBUTOR to have a physical
  office within each jurisdiction within the Territory;

  

 

 

5

 

 

	
   

  	
  (b)

  	
   

  	
  Promptly responding to
  all inquiries from customers, including responding to complaints, processing
  all orders and effecting all shipments of the Products for Included Patients;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
   

  	
  Providing the Products
  to Included Patients following discharge from hospitals upon receipt of
  written notice from the hospital and pursuant to physician orders;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
   

  	
  Attending and
  exhibiting at appropriate trade shows involving patients and/or physicians
  specialties that have a high propensity or likelihood to diagnose and treat
  patients suffering from pulmonary hypertension. DISTRIBUTOR will develop in
  conjunction with UT, sales sheets which detail the available therapy and
  support services from DISTRIBUTOR for patients on Product. At a minimum,
  DISTRIBUTOR will attend the following trade shows or national conferences of
  the following organizations:

  

 

	
   

  	
  (i)

  	
   

  	
  Pulmonary Hypertension
  Association;

  
	
   

  	
  (ii)

  	
   

  	
  American Heart
  Association;

  
	
   

  	
  (iii)

  	
   

  	
  American Lung
  Association;

  
	
   

  	
  (iv)

  	
   

  	
  American Thoracic
  Association;

  
	
   

  	
  (v)

  	
   

  	
  American College of
  Cardiology;

  
	
   

  	
  (vi)

  	
   

  	
  American Rheumatology
  Association;

  
	
   

  	
  (vii)

  	
   

  	
  Scleroderma Foundation;
  and

  

 

	
   

  	
  (e)

  	
   

  	
  Diligently
  investigating and pursuing all leads and inquiries of potential customers
  referred to DISTRIBUTOR by UT and to report promptly on the status of such leads
  and inquiries. Notwithstanding the foregoing, nothing in this Agreement shall
  be construed as requiring DISTRIBUTOR to admit to its service, or provide
  Products to, any particular individual(s) or types of individual(s). The
  determination of which individuals shall become Included Patients is in
  DISTRIBUTOR’s sole discretion.

  

 

	
  4.2

  	
   

  	
  Appropriate Products. Notwithstanding anything in this
  Agreement or attachments hereto to the contrary, DISTRIBUTOR’s obligations to
  provide MiniMed Product with UT Product shall be subject to (i) patient
  choice and physician and payor preference provided, however, that any pumps
  and supplies other than the MiniMed Products are considered therapeutically
  equivalent substitutes in accordance with prevailing medical judgment, and
  (ii) UT’s ability to supply MiniMed Product. DISTRIBUTOR will not
  promote the use or sale of any pump and supplies other than the MiniMed
  Product. In addition, DISTRIBUTOR shall not be obligated to provide MiniMed
  Product with UT Product to the extent that DISTRIBUTOR determines in its sole
  commercially reasonable discretion that it has received a significant number
  of significant patient, physician or payor complaints regarding the MiniMed
  Product and DISTRIBUTOR shall provide prompt notice to UT upon such
  determination.

  

 

 

6

 

	
  4.3

  	
   

  	
  Policies and Procedures. DISTRIBUTOR shall comply with UT’s
  DISTRIBUTOR Policies and Procedures, including, but not limited to, third
  party payer policies and procedures and policies and procedures relating to
  the MiniMed Product, a copy of which is attached hereto as Attachment E. UT
  reserves the right to change such Policies and Procedures upon notice to
  DISTRIBUTOR, provided however, that to the extent that any such change shall
  impose any greater restrictions or costs on DISTRIBUTOR, DISTRIBUTOR’s prior
  consent to such changes shall be required, such consent not to be
  unreasonably withheld or delayed.

  
	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Written Assurance. DISTRIBUTOR hereby assures UT that DISTRIBUTOR shall
  not export the Products from the Territory to any destination to which
  re-export requires a license under the United States Export Administration
  Regulations unless and until DISTRIBUTOR shall have applied for and obtained,
  at the request and expense of DISTRIBUTOR, a license from the Office of
  Export Administration, United States Department of Commerce for such report.

  
	
   

  	
   

  	
   

  
	
  4.5

  	
   

  	
  Alteration of Products. DISTRIBUTOR shall not alter the
  Products except with prior written consent of UT.

  
	
   

  	
   

  	
   

  
	
  4.6

  	
   

  	
  Product Claims. DISTRIBUTOR shall make no claims concerning the
  Products except as authorized by UT in writing or as are contained in UT’s
  marketing materials provided to DISTRIBUTOR for use in the Territory.

  
	
   

  	
   

  	
   

  
	
  4.7

  	
   

  	
  Complaints. DISTRIBUTOR shall promptly submit to UT’s Vice
  President of Operations or MiniMed, Inc.’s Technical Service Department
  detailed information regarding complaints from customers in the Territory,
  including complaints of defective or substandard UT Products or MiniMed
  Products, respectively.

  
	
   

  	
   

  	
   

  
	
  4.8

  	
   

  	
  Inventory. DISTRIBUTOR will maintain an inventory adequate to
  fill two (2) months of anticipated orders of the UT Products, with the
  intention of maintaining sufficient inventory to ensure availability;

  
	
   

  	
   

  	
   

  
	
  4.9

  	
   

  	
  Temperature Protection. DISTRIBUTOR shall ensure that during
  the entire time the Products are under DISTRIBUTOR’s control, that the
  Products are stored at the temperature specified by UT and/or
  MiniMed, Inc. for such Product.

  
	
   

  	
   

  	
   

  
	
  4.10

  	
   

  	
  Distributor Expenses. DISTRIBUTOR shall bear all of its own costs and
  expenses incurred in carrying out its obligations under this Agreement,
  including, but not limited to, all rents, salaries, commissions,
  demonstration, travel and accommodation.

  

 

Article 5.0            OBLIGATIONS OF UT

 

	
  5.1

  	
   

  	
  Training. UT will provide training to
  DISTRIBUTOR for Products at a time to be mutually agreed upon by the parties,
  but no less frequently than semi-annually. The duration, content and location
  of such training shall be as agreed upon by the

  

 

7

 

	
   

  	
   

  	
  parties. DISTRIBUTOR shall bear all costs of travel
  and living expenses for its personnel to attend such training. If training is
  provided at DISTRIBUTOR’s location, DISTRIBUTOR shall provide appropriate
  facilities, without expense to UT. UT shall bear all costs relating to its
  personnel and their travel and living expenses, materials and facilities
  utilized for training, together with any other related costs it incurs.

  
	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Samples. UT will provide a reasonable quantity of sample Products
  to DISTRIBUTOR for the sole purpose of marketing the Products to prospective
  customers in the Territory, subject to applicable legal requirements. All
  sample Products remain the property of UT and DISTRIBUTOR shall promptly
  return all samples to UT upon request. Samples shall be labeled clearly by UT
  as “SAMPLES-NOT FOR RESALE/NOT FOR PATIENT CONSUMPTION”.

  
	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Sales Material. UT will provide to DISTRIBUTOR reasonable
  quantities of such sales materials, reprints, brochures, package inserts, peer
  review articles and other scientific and medical information regarding the
  Products, informational material and other marketing literature for use by
  DISTRIBUTOR and its sales force when marketing the Products.

  
	
   

  	
   

  	
   

  
	
  5.4

  	
   

  	
  Marketing Support. UT will provide DISTRIBUTOR with such marketing
  support as the parties may mutually agree.

  
	
   

  	
   

  	
   

  
	
  5.5

  	
   

  	
  UT Expenses. UT shall bear all of its own costs and expenses
  incurred in carrying out its obligations under this Agreement, including but
  not limited to, all rents, salaries, commissions, advertising, demonstration,
  travel and accommodation.

  

 

Article 6.0            ORDERS FOR PRODUCTS

 

	
  6.1

  	
   

  	
  Purchase Orders. DISTRIBUTOR shall submit written purchase orders
  for Products to UT by mail, courier delivery or facsimile. Each such order shall
  set forth (a) the Products ordered, including item numbers;
  (b) quantities of each; (c) requested delivery dates; and
  (d) any specific shipping instructions. Except as otherwise agreed by
  UT, DISTRIBUTOR shall submit such purchase orders at least sixty (60) days
  prior to the requested delivery dates.

  
	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  Acceptance of Orders. All DISTRIBUTOR purchase orders are subject to
  acceptance in writing by UT, which acceptance shall be delivered by mail,
  courier or facsimile, or deemed to have occurred if DISTRIBUTOR shall not
  have received an acceptance or rejection of the order within five business
  days of UT’s receipt of the order. Each purchase order shall be deemed to be
  an offer by DISTRIBUTOR to purchase the Products pursuant to the terms of
  this Agreement and, if and when accepted by UT as hereinabove provided, shall
  give rise to a contract between DISTRIBUTOR and UT on the terms and
  conditions set forth herein to the exclusion of any additional or contrary
  terms set forth in the DISTRIBUTOR purchase order or which otherwise
  conflicts with this

  

 

 

8

 

	
   

  	
   

  	
  Agreement. UT shall use
  its Best Efforts, consistent with the other requirements of its business as
  determined by UT, to accept all purchase orders placed by DISTRIBUTOR in
  accordance with the terms and conditions of this Agreement.

  
	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  Delivery Terms. Unless otherwise agreed to in writing
  by UT and DISTRIBUTOR, all deliveries of the Products shall be F.O.B.
  DISTRIBUTOR’s facility. UT shall insure each shipment of such Products with a
  reputable insurer for the full invoice price of each shipment. Risk of loss
  and title to the Products shall pass upon delivery to DISTRIBUTOR at its
  facility.

  
	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Modification of Orders. No accepted purchase order shall be
  modified or canceled except upon the written agreement of both parties.

  
	
   

  	
   

  	
   

  
	
  6.5

  	
   

  	
  Change Order Charges. If DISTRIBUTOR requests modifications
  in an accepted order prior to the scheduled delivery date provided in such
  order, in consideration for accepting such change order, UT may require
  DISTRIBUTOR to extend the scheduled delivery date and/or to pay a change
  order charge equal to the sum of the actual documented non-recoverable costs
  incurred by UT by reason of such change order.

  
	
   

  	
   

  	
   

  
	
  6.6

  	
   

  	
  Product Changes. Subject to applicable regulatory
  approval, UT reserves the right, in its sole discretion and without incurring
  any liability to DISTRIBUTOR except as otherwise provided in this Agreement,
  to (a) alter any Product; (b) discontinue the manufacture of any
  Product; or (c) commence the manufacture and sale of new products having
  features which make any Product wholly or partially obsolete, provided
  however, that if such new Product may be used as a substitute for Product, UT
  shall negotiate in good faith with DISTRIBUTOR to reach an agreement on terms
  whereby DISTRIBUTOR may purchase such new products. Notwithstanding the
  foregoing, UT shall use its Best Efforts to provide DISTRIBUTOR with at least
  sixty (60) days prior written notice of any such change. UT also reserves the
  right, in its sole discretion and without incurring any liability to
  DISTRIBUTOR except as otherwise provided in this Agreement, immediately to
  alter the specifications or the manufacturing process for any Product for
  reasons of health or safety. UT shall fill all accepted purchase orders from
  DISTRIBUTOR for any altered or discontinued Products for which manufacturing
  and commercial deliveries have commenced prior to the effective date of such
  a change but otherwise shall have no obligation to do so unless the delivery
  date requested in the relevant purchase order was prior to the effective date
  of such a change.

  
	
   

  	
   

  	
   

  
	
  6.7

  	
   

  	
  Rolling Forecasts. DISTRIBUTOR and UT shall mutually
  develop and agree upon a non-binding twelve (12) month forecast indicating
  DISTRIBUTOR’ s intended purchases of Products, as well as such other
  information as UT may reasonably request. Such forecasts shall be updated by
  DISTRIBUTOR on a rolling basis each calendar quarter, and each updated
  forecast must be received by UT no later than thirty (30) days after the end
  of each calendar quarter.

  

 

 

9

 

 

Article 7.0            PRICES AND PAYMENTS

 

	
  7.1

  	
   

  	
  Prices. DISTRIBUTOR shall pay the Prices for
  the Products purchased under this Agreement which are in effect at the time
  of acceptance of the relevant purchase order submitted by DISTRIBUTOR, except
  as provided in Section 7.2. All costs relating to shipping, insuring,
  packing, handling and delivering the Products to DISTRIBUTOR’S facility shall
  be at the sole expense of UT.

  
	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  Price Changes. At any time during the term of this
  Agreement, UT may increase its Prices for the Products upon at least sixty
  (60) days prior written notice to DISTRIBUTOR, but only as long as the
  respective Price for Product is at all times at least [***] percent ([***]%)
  less than the then current published “Average Wholesale Price” (AWP) for the
  respective Product. Increased prices shall not apply to purchase orders
  accepted prior to the effective date of the price increase unless such orders
  provide for delivery, and delivery is in fact made, more than ninety (90)
  days after the date of acceptance of the order. Price decreases with respect
  to all Products shall be effective immediately upon written notice to DISTRIBUTOR
  on all such Products not yet delivered. UT agrees that it will not sell the
  Products during the term of this Agreement to another distributor in the
  Territory at a price (including payment terms) lower than what it is charging
  DISTRIBUTOR.

  
	
   

  	
   

  	
   

  
	
  7.3

  	
   

  	
  Payment Terms; Invoices. DISTRIBUTOR shall make payments for
  the Products within 60 days of its receipt of the respective invoice. Terms
  of purchase shall be two percent (2%) prompt pay discount if paid within
  thirty (30) days of invoice receipt. UT shall ensure that all invoices for
  Products accurately reflect the actual charge to DISTRIBUTOR for the
  Products, including to the extent applicable any and all discounts, free
  goods or other reductions in price of the Products to DISTRIBUTOR. All
  payments shall be made in United States Dollars.

  
	
   

  	
   

  	
   

  
	
  7.4

  	
   

  	
  Overdue Payments. If and for so long as any payment
  from DISTRIBUTOR to UT under this Agreement shall be overdue:

  
	
   

  	
   

  	
   

  

 

	
   

  	
  (a)

  	
   

  	
  Interest in the
  applicable currency of payment shall be due and payable at the rate of
  interest of twelve percent (12%) per annum, or such lower rate as may be the
  maximum legally permissible rate of interest, on all balances outstanding
  from the first date such payment is due until fully paid; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
   

  	
  UT shall have the right
  to recover its collection costs and expenses (including reasonable attorneys’
  fees) for late payments. UT reserves the right to revoke any credit terms it
  may offer DISTRIBUTOR if there is any unsettled or outstanding balance owed
  by DISTRIBUTOR to UT.

  
	
   

  	
   

  	
   

  	
   

  
	
  7.5

  	
   

  	
  Tax Payments. Each Party shall pay all taxes,
  duties, import deposits, assessments and other governmental charges, however
  designated, that are now or

  

 

 

10

 

	
   

  	
   

  	
  hereafter
  imposed upon such Party by any governmental authority or agency in connection
  with the performance of its obligations under this Agreement.

  
	
   

  	
   

  	
   

  
	
  7.6

  	
   

  	
  Resale
  Prices. 
  DISTRIBUTOR may offer the Products in the Territory at such prices or
  discounts as DISTRIBUTOR, in its sole discretion, may determine.

  

 

Article 8.0            ACCEPTANCE, WARRANTY AND PRODUCTS
SUPPORT

 

	
  8.1

  	
   

  	
  Acceptance
  of Products. 
  DISTRIBUTOR shall promptly inspect each shipment of the Products.  In the event of any shortage, damage,
  expiration or discrepancy in a shipment of Products which is patently
  obvious, DISTRIBUTOR shall promptly report the same to UT and furnish such
  written evidence or other documentation as UT may reasonably request.  DISTRIBUTOR shall be deemed to have
  accepted a shipment and UT shall not be liable for any such shortage, damage,
  expiration or discrepancy in such shipment unless DISTRIBUTOR provides UT
  with such notice and substantiating evidence within forty-five (45) days of
  arrival of the Products at DISTRIBUTOR’s shipping address in the
  Territory.  Upon receipt of the
  reasonable substantiating evidence of such shortage, damage or discrepancy,
  UT shall refund any payments made for the Product or UT shall promptly
  provide additional or substitute Products to DISTRIBUTOR, and UT shall
  promptly reimburse (or, at DISTRIBUTOR’s option, DISTRIBUTOR may deduct such
  amounts from payments due to UT hereunder) for any actual costs, expenses or
  damages incurred by DISTRIBUTOR, directly or indirectly, as a result of such
  shortage, damage or discrepancy in or to a shipment.

  
	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  Product
  Warranty.  UT
  hereby authorizes DISTRIBUTOR to pass on the UT standard warranty and the
  MiniMed, Inc. standard warranty each set forth in Attachment D for the
  UT Product and MiniMed Product, respectively, to DISTRIBUTOR’s customers in
  the Territory, which may be revised by UT upon notice to DISTRIBUTOR.  DISTRIBUTOR shall not offer its customers
  any warranties different from or in addition to those given by UT hereunder.

  
	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  Excluded Claims.  UT shall not have any additional warranty
  obligations to DISTRIBUTOR or DISTRIBUTOR’s customers under Section 8.2
  above or otherwise to the extent that DISTRIBUTOR has made any warranties,
  oral or written, beyond those expressly set forth in the standard UT
  warranty, Attachment D hereto.

  
	
   

  	
   

  	
   

  
	
  8.4

  	
   

  	
  Limited
  Warranty.  THE
  WARRANTIES SET FORTH IN THE UT WARRANTY, ATTACHMENT D HERETO, AND THE OTHER
  TERMS AND CONDITIONS OF THIS AGREEMENT, ARE IN LIEU OF ALL OTHER WARRANTIES,
  EXPRESS OR IMPLIED, WHICH ARE HEREBY DISCLAIMED AND EXCLUDED BY UT,
  INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR
  A PARTICULAR PURPOSE OR USE.  THE SOLE
  AND EXCLUSIVE REMEDIES FOR BREACH OF UT’S STANDARD WARRANTIES SHALL 

  

 

 

11

 

	
   

  	
   

  	
  BE LIMITED
  TO THE REMEDIES PROVIDED IN UT’S STANDARD WARRANTIES SET FORTH ON ATTACHMENT
  D, ATTACHED HERETO, AND AS OTHERWISE PROVIDED IN THIS AGREEMENT.

  
	
   

  	
   

  	
   

  
	
  8.5

  	
   

  	
  Limited
  Remedy.  UT
  SHALL NOT BE LIABLE TO DISTRIBUTOR OR ANY OF THEIR CUSTOMERS FOR LOSS OR
  DAMAGE CAUSED BY DELAY IN FURNISHING THE PRODUCTS UNDER THIS AGREEMENT.  UT SHALL NOT BE LIABLE TO DISTRIBUTOR OR
  ANY THIRD PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL LOSSES
  OR DAMAGES, EVEN IF UT SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
  POTENTIAL LOSS OR DAMAGE BY DISTRIBUTOR OR ANY THIRD PARTY.  IN NO EVENT, SHALL UT BE LIABLE FOR ANY
  DAMAGES IN EXCESS OF THE LESSER OF THE COST OF REPLACEMENT OR REFUND OF THE
  NET PURCHASE PRICE PAID BY DISTRIBUTOR FOR ANY DEFECTIVE OR DAMAGED
  PRODUCT.  NOTWITHSTANDING THE
  FOREGOING, IN CASE OF ANY CONFLICT BETWEEN THE PROVISIONS OF THIS SECTION AND
  SECTION 12.3, SECTION 12.3 SHALL CONTROL.

  

 

Article 9.0            REGULATORY APPROVALS, COMPLIANCE
AND AUDITS

 

	
  9.1

  	
   

  	
  FDA Approval.  UT represents and warrants that as of the
  Effective Date with respect to clinical trials, and prior to Commercial
  Launch with respect to commercial sale, the Products have received or shall
  have received, as the case may be, (a) clearance from the FDA to in the
  Territory for the approved indications, and (b) all federal and state
  approvals and permits required for the manufacture, importation, design,
  testing, inspection, labeling, warning, instructions for use, marketing, sale
  and distribution of the Product in the Territory.  UT shall promptly notify DISTRIBUTOR in
  writing upon receiving applicable FDA approvals, and such notice shall
  include the effective date of such approval, as well as the significant
  terms, conditions and limitations of such approval (including applicable
  indications), and UT shall also notify DISTRIBUTOR in writing of the
  effective date of Commercial Launch.

  
	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Compliance
  with Laws.  UT
  shall be solely responsible for, and comply with, all applicable federal and
  state laws, regulations and orders governing the regulation of the
  manufacture, importation, design, testing, inspection, labeling, sale,
  warning and instructions for use of all Product in the Territory, or
  otherwise applicable to the performance of its obligations under this
  Agreement.  DISTRIBUTOR shall comply
  with all applicable federal and state laws, regulations and orders governing
  its distribution and sale of Products in the Territory, or otherwise
  applicable to the performance of its obligations hereunder.  Each Party shall conduct its activities
  hereunder in and ethical and professional manner.

  
	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  Inspection.  Each Party shall notify the other Party
  promptly of any inspection by any federal, state, or local regulatory
  representative concerning any Product and 

  

 

 

 

12

 

	
   

  	
   

  	
  shall
  provide the other Party with a summary of the results of such inspection and
  such actions, if any, taken to remedy conditions cited in such
  inspections.  Each Party agrees to
  cooperate with any inspection of a Product shipment conducted by a
  governmental agency.

  
	
   

  	
   

  	
   

  
	
  9.4

  	
   

  	
  Adverse
  Event Reporting. 
  Each Party agrees to inform the other Party promptly (but in no event
  no later than forty-eight (48) hours after becoming aware of same) of any
  complaint, or labeling or package insert issues, involving a Product or
  adverse drug experience (as defined in 21 C.F.R. 314.80), injury, toxicity,
  or sensitivity reaction associated with the clinical use of the Product,
  whether or not considered related to the Products.

  

 

	
   

  	
   

  	
  (a)

  	
  If
  the adverse drug experience is serious, as defined in 21 C.F.R. 314.80
  (including any adverse drug reaction that is fatal or life-threatening, is
  permanently disabling, requires inpatient hospitalization, or is a congenital
  anomaly, cancer or overdose), then each Party shall notify the other Party
  within twenty-four (24) hours;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  All
  notifications to UT shall be by facsimile and on UT’s designated adverse
  event forms.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  To
  the extent of any conflict between the provisions of this Section and
  Attachment E to this Agreement, the provisions of this Section shall
  control.

  

 

	
  9.5

  	
   

  	
  Withdrawal
  of Product. 
  If there is a recall of withdrawal of a Product, then UT shall
  immediately contact DISTRIBUTOR’s corporate purchasing department in
  accordance with DISTRIBUTOR’s policies and procedures made available to UT,
  and DISTRIBUTOR agrees to stop shipping recalled lots immediately, and in no
  event later than twenty-four (24) hours after DISTRIBUTOR receives written
  notification of such recalls. 
  DISTRIBUTOR shall cooperate fully in any such recall, including any
  customer notice, restriction, change, corrective act or market action or any
  Product change requested or ordered by any governmental agency having
  jurisdiction in the Territory.  UT
  agrees to reimburse DISTRIBUTOR for any reasonable cost or expenses
  (including reasonable attorneys’ fees) DISTRIBUTOR may incur due to recalls,
  withdrawals, replacements or government inspections of any Product.  DISTRIBUTOR shall prepare an invoice of
  such costs which invoice shall be paid by UT within thirty (30) days of
  receipt of such invoice.  Each party
  shall promptly provide the other party with copies of correspondence to or
  from governmental authorities relating to corrective action in the Territory
  concerning the Products.

  
	
   

  	
   

  	
   

  
	
  9.6

  	
   

  	
  Visits by
  Parties.  Each
  Party shall permit the other Party to visit its place of business and inspect
  its records, inventories and other relevant materials relating solely to its
  performance of this Agreement, upon reasonable advance notice and during
  normal business hours.

  

 

 

 

13

 

Article 10.0          PROPERTY OWNERSHIP; CONFIDENTIALITY

 

All Confidential Information and other
proprietary material, documents, information, databases, complete and
incomplete case report forms and all data that either Party (“disclosing
party”) supplies to the other Party (“receiving party”) shall be the sole and
exclusive property of the disclosing party (“Disclosing Party Property”).  All Confidential Information shall be deemed
confidential and proprietary to the disclosing party.  The receiving party (a) may use the
Confidential Information during the term of this Agreement only as permitted or
required for its performance hereunder, (b) shall not disclose or provide
any Confidential Information to any third party, and (c) shall take
reasonable measures to prevent any unauthorized disclosure by its employees,
agents, contractors or consultants during the term hereof including advising
such individuals of applicable confidentiality obligations.  The foregoing duty shall survive any
termination or expiration of this Agreement for a period of five (5) years.  Upon termination of this Agreement, the
receiving party shall return to the disclosing party, at the disclosing party’s
expense all unused Disclosing Party Property.

 

Article 11.0          TRADEMARK

 

	
  11.1

  	
   

  	
  Trademark
  License Grant. 
  UT hereby grants to DISTRIBUTOR, and DISTRIBUTOR hereby accepts from
  UT, a nonexclusive, nontransferable, and royalty-free right and license,
  during the term of this Agreement, to reproduce and use the UT Trademarks in
  connection with the distribution, marketing, promotion and sale or other
  distribution of the Products in the Territory and in accordance with UT’s standards
  and instructions and for no other purpose. 
  DISTRIBUTOR shall not use any other marks or trade names in connection
  with the marketing and distribution of the Products, except that DISTRIBUTOR
  may use its marks or trade names in a manner consistent with its normal
  course of business, such as adding a label on the packaging identifying
  DISTRIBUTOR as a distributor of Products, such label to be approved by UT in
  advance in writing as to size and content, such approval not to be
  unreasonably withheld or delayed, and such use shall not confer on UT any
  rights or license in DISTRIBUTOR’s marks or trade names.  UT may inspect and monitor DISTRIBUTOR’s
  use of the UT Trademarks.  DISTRIBUTOR
  shall not remove or alter any UT trade names, trademarks, copyright notices,
  serial numbers, labels, tags or other identifying marks, symbols or legends
  affixed to any Products, documentation or containers or packages.

  
	
   

  	
   

  	
   

  
	
  11.2

  	
   

  	
  Registration.  In its sole discretion, UT may register the
  UT Trademarks in the Territory if UT determines that registration is
  necessary or useful to the successful distribution of the Products.  In addition, if UT believes that it is
  advisable to effect any filing or obtain any governmental approval or sanction
  for the use by DISTRIBUTOR of any of UT Trademarks pursuant to this
  Agreement, the Parties shall cooperate to do so.  All expenses relating to the registration
  of the UT Trademarks in the Territory as well as the making of any filing or
  obtaining any governmental approvals for the use by DISTRIBUTOR of the
  Trademarks shall be borne by UT.

  

 

 

 

 

14

 

	
  11.3

  	
   

  	
  Termination
  of Use. 
  Immediately upon termination of this Agreement, DISTRIBUTOR shall
  cease and desist from use of any UT Trademark in any manner, other than to
  liquidate its then-existing inventory of the Products within six months of
  such termination.  DISTRIBUTOR hereby
  grants to UT or its designee, in the event of such termination, full power of
  attorney, with the right of substitution, to cancel, revoke or withdraw any
  governmental registration or authorization permitting DISTRIBUTOR to use any
  UT Trademark in the Territory, and DISTRIBUTOR shall provide such further
  documentation and assistance as UT may reasonably request in connection therewith.

  
	
   

  	
   

  	
   

  
	
  11.4

  	
   

  	
  Reservation
  of Rights. 
  DISTRIBUTOR acknowledges UT’s proprietary rights in and to any UT
  Trademark, subject to the license and right granted in Section 11.1.  DISTRIBUTOR shall not adopt, use or
  register any words, phrases or symbols which are identical to or confusingly
  similar to any UT Trademark and shall not use any UT Trademark as part of
  DISTRIBUTOR’s corporate or trade name or permit any third party to do so.

  
	
   

  	
   

  	
   

  
	
  11.5

  	
   

  	
  Infringements.  DISTRIBUTOR shall promptly notify UT if it
  becomes aware of any use in the Territory by any third party of any UT
  Trademark or of any similar mark which may constitute an infringement of a UT
  Trademark.  Subject to the provisions
  of this Section, UT shall have the exclusive right, in its sole discretion,
  to institute proceedings against third-party infringers in respect of
  infringements occurring in the Territory. 
  If UT elects not to institute such proceedings within a period of
  thirty (30) days after notification of the alleged infringement, DISTRIBUTOR
  shall have the option to do so, and UT shall thereafter refrain from doing
  so.  UT shall have the exclusive right
  in its sole discretion to institute proceedings against third-party
  infringers in respect of infringements occurring outside the Territory.  Each Party shall cooperate fully with the
  other Party in connection with any such proceedings against third-party
  infringers, provided that all expenses of such proceedings shall be borne by
  the Party instituting same and all damages which may be awarded or agreed
  upon in settlement of such action shall accrue to such Party.

  

 

Article 12.0          INSURANCE
AND INDEMNIFICATION

 

	
  12.1

  	
   

  	
  Insurance.  Each Party shall maintain in effect during
  the term of this Agreement a comprehensive general liability policy (which
  may be in the form of primary or excess coverage) in an amount not less than
  Two Million Dollars ($2,000,000) per occurrence and Three Million Dollars
  ($3,000,000) in the aggregate and shall promptly after the execution of this
  Agreement designate the other party as an additional named insured on such
  policies.  The deductible for such
  policy shall be no more than One Hundred Thousand Dollars ($100,000) and
  shall provide for ten (10) days’ notice to the other party by the
  insurer by registered or certified mail, return receipt requested, in the
  event of any modifications, cancellations or terminations thereof.  Each Party agrees to provide the other
  Party with a certificate of insurance evidencing compliance with this section
  within ten (10) days of execution of this Agreement.

  

 

 

15

 

	
  12.2

  	
   

  	
  DISTRIBUTOR
  Indemnification of UT.  Except as provided in Section 12.3,
  DISTRIBUTOR shall indemnify, defend and hold harmless UT and its Affiliates,
  and their respective officers, directors, employees, agents and successors
  and assigns from and against, any Claim to the extent such claim relates to
  or is based on (a) property damage, personal injury or death resulting
  from DISTRIBUTOR’s negligent or reckless provision or maintenance of the
  Products (except to the extent the same results from any wrongful act or
  omission of UT), (b) DISTRIBUTOR’s violation of any applicable law or
  governmental regulation or (c) any breach by DISTRIBUTOR of any of its
  representations, warranties, covenants or agreements in this Agreement.  For the purpose of this Section and Section 12.3,
  a “Claim” shall be any liabilities, damages, costs or expenses, including,
  without limitation, reasonable attorneys’ fees which arise from any claim,
  lawsuit, demand or other action by any Party other than one of the Parties or
  an Affiliate of one of the Parties.

  
	
   

  	
   

  	
   

  
	
  12.3

  	
   

  	
  UT
  Indemnification of DISTRIBUTOR for UT Products.  Except as provided in Section 12.2, UT
  shall indemnify, defend and hold harmless DISTRIBUTOR and its Affiliates, and
  their respective officers, directors, employees, agents and successors and
  assigns from and against any Claim to the extent such Claim relates to or is
  based on (a) UT’s design, manufacture or supply of the Products, (b) property
  damage, personal injury or death resulting from use of the Product (except to
  the extent the same results from any wrongful action or omission of
  DISTRIBUTOR), (c) UT’s violation of any applicable law or governmental
  regulation, (d) any breach by UT of any of its representations,
  warranties, covenants or agreements in this Agreement, (e) any inability
  of DISTRIBUTOR to supply Products to an Included Patient as a result of a
  shortage of product or other failure of UT to deliver Product (except to the
  extent the same results from any wrongful action or omission of DISTRIBUTOR),
  (f) any recall or withdrawal of Product, or return of damaged,
  defective, shortdated or outdated Product, or (g) any claim that
  DISTRIBUTOR’S distribution and sale of Products infringes on the patent,
  trade mark, copyright, or other proprietary rights of any third party.  To the extent of any conflict between the
  provisions of this Section and the provisions of Attachment E to this
  Agreement, this Section shall control.

  
	
   

  	
   

  	
   

  
	
  12.4

  	
   

  	
  UT Indemnification
  of DISTRIBUTOR for MiniMed Products.  UT shall indemnify, defend and hold
  DISTRIBUTOR harmless from and against any and all Claims relating to product
  liability claims with respect to MiniMed Products which are designed,
  developed and manufactured solely and independently by MiniMed, Inc.

  
	
   

  	
   

  	
   

  
	
  12.4

  	
   

  	
  Indemnification
  Procedure.  A
  Party seeking indemnification under this Article 12.0 (“Indemnified
  Party”) shall give prompt written notice to the indemnifying party
  (“Indemnifying Party”) of any Claim covered by the indemnification
  obligations hereunder; provided, however, that a delay in such notice shall
  not terminate the Indemnifying Party’s indemnification obligations hereunder,
  unless such delay shall have materially impaired the defense of such
  Claim.  Such Indemnifying Party shall
  have sole and exclusive control of the defense of any 

  

 

 

 

16

 

	
   

  	
   

  	
  such Claim,
  including the choice and direction of any legal counsel, provided, however,
  if a single legal counsel would be subject to a material conflict of interest
  under the applicable rules of professional conduct governing such
  counsel, the Indemnified Party shall not be obligated to waive such conflict
  and may request separate legal counsel at the Indemnifying Party’s
  expense.  The Indemnifying Party may
  not settle or compromise any such Claim without the written consent of the
  Indemnified Party, which consent shall not be unreasonably withheld.

  
	
   

  	
   

  	
   

  
	
  12.5

  	
   

  	
  Litigation
  Support.  In
  the event and for so long as an Indemnifying Party actively is contesting or
  defending against any Claim in connection with this Article 12.0, the
  Indemnified Party shall cooperate with the Indemnifying Party and its counsel
  in the contest or defense, make available its personnel, and provide such
  testimony and access to its books and records as shall be reasonably
  necessary in connection with the contest or defense, all at the sole cost and
  expense of the Indemnifying Party.

  
	
   

  	
   

  	
   

  
	
  12.6

  	
   

  	
  Subrogation.  The Indemnifying Party shall be subrogated
  to the rights of the Indemnified Party against any third party, and such
  Indemnified Party hereby assigns to the Indemnifying Party all claims, causes
  of action and other rights which the Indemnified Party may then have against
  any third party.  Conversely, and
  without in any way limiting the obligation of either Party to indemnify the
  other Party as herein provided, to the extent that an Indemnifying Party
  fails to perform its indemnification obligations under Section 12.2 or Section 12.3
  above, the Indemnifying Party hereby assigns to the Indemnified Party all
  claims, cause of action and other rights which the Indemnifying Party may
  then have against any third party with respect to any Claim for which
  indemnification is provided hereunder.

  

 

Article 13.0          NON-SOLICITATION

 

	
  13.0

  	
   

  	
  Each Party agrees that during the term of
  this Agreement, and for a period of one year after the effective termination
  date, it shall not, without the other Party’s written consent, employ or
  retain on an independent contracting basis any person who was, at any time
  during the immediately preceding twelve (12) month period, employed by the
  other Party or any of its Affiliates.

  

 

Article 14.0          JOINT
PUBLICITY

 

	
  14.1

  	
   

  	
  Public
  Disclosure. 
  If either Party wishes to make a public disclosure concerning this
  Agreement or the relationship established hereunder and such disclosure
  mentions the other Party by name or description, such other Party shall be
  provided with an advance copy of the disclosure and shall have two (2) business
  days within which to approve or disapprove such use or its name of
  description (including mention of the name of the Product) provided, however:

  

 

 

17

 

	
   

  	
   

  	
  (a)

  	
  Approval
  shall not be unreasonably withheld by either Party. Failure to respond within
  two (2) business days shall be deemed approval.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  Absent
  approval, no disclosure shall use the name of or otherwise describe such
  Party except to the extent required by law, or the extent that the description
  of the other Party is limited to public information about the availability of
  the Product.

  

 

	
  14.2

  	
   

  	
  Filings with
  SEC. 
  Notwithstanding the foregoing, each Party acknowledges that both
  parties are or are affiliates of a publicly traded company and each Party
  hereby consents to the disclosure of this Agreement and the relationship
  between the Parties in their respective filings with the Securities and
  Exchange Commission and their disclosures to its stockholders; provided,
  however, that each Party shall use its commercially reasonable efforts not to
  disclose the specific financial terms and conditions of this Agreement except
  when such disclosure is required by law.

  

 

Article 15.0          FORCE
MAJEURE

 

	
  15.1

  	
   

  	
  Notice.  A Party affected by an event of Force
  Majeure shall promptly provide the other Party with written notice describing
  the event, its cause and foreseeable duration, and its possible consequences
  upon performance under this Agreement.

  
	
   

  	
   

  	
   

  
	
  15.2

  	
   

  	
  Suspension
  of Performance. 
  After an affected Party has given notice under Section 15.1, that
  Party shall be relieved of any performance obligation under this Agreement
  for obligations which the Force Majeure event prevents, but only to the
  extent and only for so long as the Force Majeure prevents performance.  The other Party may likewise suspend the
  performance of all or part of its obligations, except for the obligation to
  pay any amounts due and owing, and confidentiality, indemnification,
  record-keeping and audit, and dispute resolution obligations of this Agreement,
  to the extent that such suspension is commercially reasonable.

  
	
   

  	
   

  	
   

  
	
  15.3

  	
   

  	
  Termination.  If the period of Force Majeure continues
  for more than sixty (60) days, either Party may terminate this Agreement upon
  giving notice to the other Party without incurring liability other than the
  obligation to make payments due to such date.

  

 

Article 16.0          TERM
AND TERMINATION

 

	
  16.1

  	
   

  	
  Term.  The initial term of this Agreement shall
  begin on the Effective Date and shall continue in force through three (3) years
  from the Commercial Launch date (the “Initial Term”).  Thereafter, this Agreement shall
  automatically renew for additional periods of one (1) year each, unless
  either of the Parties shall have given the other Party written notice of its
  non-renewal of this Agreement no later than ninety (90) days prior to the end
  of the initial or any renewal term hereof.

  
	
   

  	
   

  	
   

  
	
  16.2

  	
   

  	
  Termination.  This Agreement may be terminated prior to
  the expiration of the then current term as follows:

  

 

 

 

18

 

 

	
   

  	
   

  	
  (a)

  	
  Either
  Party may terminate this Agreement immediately upon notice if the other Party
  files a petition of any type as to its bankruptcy, is declared bankrupt,
  becomes insolvent, makes an assignment for the benefit of creditors, goes into
  liquidation or receivership, a proceeding is commenced against it which will
  substantially impair its ability to perform hereunder or such Party otherwise
  loses legal control of its business;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  Either
  Party may terminate this Agreement upon the material breach of the other
  Party (including, but not limited to, DISTRIBUTOR’ s failure to pay promptly
  sums owing to UT) which breach has not been cured within thirty (30) days of
  receiving prior written notice of such breach from the non-breaching Party;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  Either
  Party may terminate this Agreement upon notice if an event of Force Majeure
  continues for more than sixty (60) days as provided in Section 15.3;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  The
  Parties may agree in writing to terminate this Agreement for their mutual
  convenience at any time and for any reason, subject to such terms and
  conditions as they may adopt;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
  DISTRIBUTOR
  may terminate this Agreement immediately if the required FDA approvals shall
  not have been obtained by UT on or prior to September 30, 2001;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)

  	
  UT
  may terminate this Agreement immediately upon written notice to DISTRIBUTOR
  if:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (i)

  	
  an
  act or omission of DISTRIBUTOR or DISTRIBUTOR’s 

  employees, officers, subdistributors or agents has caused material 

  harm to the Products, UT Trademarks or the goodwill attached 

  thereto; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (ii)

  	
  There
  is a material change in the management or operation of DISTRIBUTOR’s business
  which has a material adverse effect on DISTRIBUTOR’s ability to perform its
  obligations under this 

  Agreement;

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (g)

  	
  Either
  Party may terminate this Agreement at any time with or without cause by
  giving notice in writing to the other Party, which shall be effective one
  hundred and eighty days (180) days after its date; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (h)

  	
  If
  at any time in the future, a change of legal requirements would
  (a) require the parties to renegotiate or alter the terms of this
  Agreement, or (b) result in a substantial adverse change in the
  respective financial benefits or burdens accruing to any Party under the
  terms of this Agreement, then upon written request by either party in the
  case of (a), or the affected Party in the case of (b), the Parties shall
  endeavor in good

  

 

19

 

	
   

  	
   

  	
   

  	
  faith
  to renegotiate and modify the terms of this Agreement to comply with such new
  requirements or avoid such substantial adverse change. If the Parties are
  unable to agree to such modifications within 90 days of receipt of the
  written request, then either Party (in the case of (a)), or the adversely
  affected Party (in the case of (b)) may terminate this Agreement immediately
  upon expiration of the 90 day period.

  

 

	
  16.3

  	
   

  	
  Partial
  Termination. 
  In the event that UT shall have the right pursuant to the provisions
  of Section 16.2 to terminate this Agreement in its entirety, UT may
  elect, in its sole discretion, to terminate this Agreement solely as it
  applies to any portion of the Territory, or, if applicable, any category of
  customer.

  
	
   

  	
   

  	
   

  
	
  16.4

  	
   

  	
  Rights and
  Obligations on Termination.  If this Agreement is terminated for any
  reason, the Parties shall have the following rights and obligations:

  

 

	
   

  	
   

  	
  (a)

  	
  Termination
  of this Agreement shall not release either Party from the obligation to make
  payment of all amounts then or thereafter due and payable, and shall not
  release UT from its obligations to provide Products to DISTRIBUTOR at
  DISTRIBUTOR’ s request to service its existing patients as of the effective
  termination date and until such existing patients are transitioned to another
  distributor, which DISTRIBUTOR will use its Best Efforts to achieve as
  expeditiously as possible after the effective termination date;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  Each
  Party’s respective obligations of confidentiality under Article 13.0,
  and record retention under Article 18.0, shall survive as provided in
  such articles;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  Each
  Party’s respective obligations of indemnification under Article 12.0 and
  to settle all disputes, controversies or claims under Article 17.0 shall
  survive such termination of this Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)

  	
  UT
  shall cause other entities to undertake, or shall otherwise relieve
  DISTRIBUTOR of its obligations and all costs relating to all PAP Patients and
  NCIP Patients, and shall complete such transition or relief with respect to
  such patients no later than 180 days from the termination date. DISTRIBUTOR
  agrees to use its Best Efforts to cooperate with such transfer; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)

  	
  Each
  Party shall, within ninety (90) days of the date of the termination of this
  Agreement, return any documentation and all copies of documentation (in any
  media) in its possession, custody or control that contain the other Party’s
  Confidential Information and shall certify in writing that it has done so
  after a reasonable examination of all its files where such documentation has
  been maintained.

  

 

20

 

	
  16.5

  	
   

  	
  Sell-Off Period. Notwithstanding the foregoing, upon expiration of
  this Agreement or upon any termination of this Agreement, DISTRIBUTOR shall
  have the right to continue to distribute the Products for a period of six
  (6) months after the effective date of expiration or termination, and
  shall have the option to return to UT for full reimbursement by UT to
  DISTRIBUTOR at the most recent Prices in effect, any and all unsold remaining
  inventory of Products.

  

 

Article 17.0          DISPUTE
RESOLUTION

 

	
  17.1

  	
   

  	
  Negotiation. The Parties agree to consult and negotiate in good
  faith to try to resolve any dispute, controversy or claim that arises out of
  or relates to this Agreement. Except as provided in Section 17.2, no
  formal dispute resolution shall be used by either Party unless and until
  senior executive officers of each Party shall have attempted to meet in
  person to achieve such an amicable resolution.

  
	
   

  	
   

  	
   

  
	
  17.2

  	
   

  	
  Reservation for Litigation. Notwithstanding Section 17.3
  below, each Party expressly reserves the right to seek judicial relief from a
  court of competent jurisdiction if the other Party is or appears to be in
  violation of such other Party’s obligations of non-use and non-disclosure
  under Article 10.0 above, including, without limitation, any injunction
  or other preliminary relief.

  
	
   

  	
   

  	
   

  
	
  17.3

  	
   

  	
  Arbitration. Subject to the reservation of the Parties under
  Section 17.2 above, any dispute, controversy or claim that arises out of
  or relates to this Agreement that is not resolved under Section 17.1
  shall be settled by final and binding arbitration in accordance with the
  Commercial Arbitration Rules of the American Arbitration Association
  (“AAA”) in effect on the Effective Date, as modified by Section 17.4
  below. Judgment upon the award rendered by the arbitrators may be entered in
  any court of competent jurisdiction. The place of arbitration shall New York,
  New York, U.S.A. The arbitration shall be conducted in the English language
  by three (3) neutral arbitrators selected by mutual agreement of the
  Parties or, if that is not possible within thirty (30) days of the initial
  demand for such arbitration, by the AAA.

  
	
   

  	
   

  	
   

  
	
  17.4

  	
   

  	
  Special Rules. Notwithstanding any provision to the contrary in
  the AAA’s rules, the Parties hereby stipulate that any arbitration hereunder
  shall be subject to the following special rules:

  

 

	
   

  	
  (a)

  	
   

  	
  Each Party shall have the right to request from the
  arbitrators, and the arbitrators shall order upon good cause shown,
  reasonable and limited pre-hearing discovery, including (i) exchange of
  witness lists, (ii) depositions under oath of named witnesses,
  (iii) written interrogatories, and (iv) document requests;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
   

  	
  Upon conclusion of the pre-hearing discovery, the
  arbitrators shall promptly hold a hearing upon the evidence to be presented
  by the Parties and shall promptly render a written opinion and award;

  

 

 

 

21

 

 

	
   

  	
  (c)

  	
   

  	
  The arbitrators may not award or assess punitive
  damages against either Party; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
   

  	
  Each Party shall bear its own costs and expenses of
  the arbitration and one-half (1/2) of the fees and costs of the arbitrators,
  subject to the power of the arbitrators, in their sole discretion, to award
  all such reasonable costs, expenses and fees to the prevailing Party.

  

 

Article 18.0          RECORDS

 

During
the term hereof and for three (3) years thereafter, or such longer period
as may be required by law, each Party shall maintain accurate records as
required to meet applicable local, state and federal laws and regulations.  Except as otherwise required by any such laws
or regulations, each Party shall provide the other access to any reasonably
requested documentation related solely to this Agreement during reasonable
business hours.  Each Party shall give to
the other seven (7) days’ prior written notice of such examinations, which
will not occur more than twice annually, and such examination will be
undertaken only to such extent necessary to verify that the other Party has
complied with the terms of this Agreement.

 

Article 19.0          GENERAL
PROVISIONS

 

	
  19.1

  	
   

  	
  Entire Agreement. This Agreement constitutes the entire agreement of
  the Parties with respect to the subject matter hereof and supersedes all the
  Parties’ previous or contemporaneous correspondence, term sheets,
  understandings, agreements and representations, oral or written between the
  Parties.

  
	
   

  	
   

  	
   

  
	
  19.2

  	
   

  	
  Assignment. Neither Party shall assign or otherwise transfer
  its rights or obligations under this Agreement except with the prior written
  consent of the other Party (which shall not be unreasonably withheld or
  delayed); provided that no such consent for a transfer to an entity shall be
  required and all rights and obligations arising hereunder shall inure to the
  benefit of that entity if it is (a) an Affiliate of the assigning Party,
  (b) the successor in interest of the assigning Party by reason of sale,
  merger or operation of law, or (c) has acquired all or substantially all
  of the assets and business of the assigning Party. Any unauthorized attempted
  assignment or delegation shall be null and void and of no force or effect.

  
	
   

  	
   

  	
   

  
	
  19.3

  	
   

  	
  Amendment. This Agreement may not be modified or amended, in
  whole or in part, except by a written agreement signed by both Parties, and
  specifically stating that it modifies or amends this Agreement.

  
	
   

  	
   

  	
   

  
	
  19.4

  	
   

  	
  Severability. If one or more of the provisions of this Agreement
  is subsequently declared invalid or unenforceable, this Agreement shall be
  treated as though that provision were not in this Agreement, and this shall
  not affect the validity or enforceability of the remaining provisions of this
  Agreement (unless those provisions that are invalidated or unenforceable are
  clearly material and inseparable from the other provisions). The Agreement as
  modified shall be

  

 

 

 

22

 

 

	
   

  	
   

  	
  applied and construed to reflect substantially the
  good faith intent of the Parties and to achieve the economic effects
  originally intended by the terms hereof.

  
	
   

  	
   

  	
   

  
	
  19.5

  	
   

  	
  Notices; Language. Except as may be otherwise provided in this
  Agreement, any notice, demand or request given, made or required to be made
  shall be in writing and shall be effective, unless otherwise provided herein,
  either (a) when delivered in person to the other Party, or (b) on
  the same business day that it is transmitted by facsimile to the facsimile
  number (s) set forth below, with electronic confirmation of receipt, if
  transmitted prior to 5:00 p.m. Eastern time on such business day, or on
  the first business day following such transmission if transmitted after
  5:00 p.m. Eastern Time or if transmitted on a day other than a business
  day; provided a hard copy is deposited within one (1) day after such
  transmissions in the U.S. mail, postage prepaid, and addressed as set forth
  below for notices by U.S. mail; or (c) on the third business day
  following its deposit in the U.S. mail, postage and addressed as follows:

  

 

	
   

  	
  If to UT:

  	
   

  	
  United Therapeutics Corporation

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  1110 Spring Street

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Silver Spring, Maryland 20910

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Attention: Paul Mahon, General Counsel

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Telefax: 301-608-9291

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  If to DISTRIBUTOR:

  	
   

  	
  Gentiva Health Services

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  175 Broad Hollow Road

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Melville, NY 11747

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Attention:

  	
  Executive Vice President

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  President, Specialty

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pharmaceuticals Division

  	 

	
   

  	
   

  	
   

  	
  Telefax: (631) 844-7940

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  With copies to:

  	
  Law Department

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Telefax: (631) 844-7414

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  And:

  	
  Corporate Purchasing Department

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Telefax: (913) 814-4866

  	
   

  
										

 

	
  19.6

  	
   

  	
  Waiver. Either Party’s failure or delay in exercising any
  remedy for default shall not be deemed a waiver of that or any subsequent
  default of that provision or of any other provision hereof. No waiver shall
  be effective unless made in writing with specific reference to the relevant
  provision(s) of this Agreement and signed by a duly authorized representative
  of the Party granting the waiver.

  
	
   

  	
   

  	
   

  
	
  19.7

  	
   

  	
  Counterparts. This Agreement shall be executed in two
  (2) or more counterparts in the English language, each of which shall be
  deemed an original, which taken together shall constitute one and the same
  instrument.

  
	
   

  	
   

  	
   

  
	
  19.8.

  	
   

  	
  Governing Law. Except as provided by federal law, this Agreement
  shall be governed by, and interpreted and construed in accordance with, the
  laws of the

  

 

 

23

 

	
   

  	
   

  	
  State of New York, excluding (a) any
  conflict-of-laws rule or principle therein contained under which any
  other law would be made applicable.

  
	
   

  	
   

  	
   

  
	
  19.9

  	
   

  	
  Relationship. This Agreement does not make either Party the
  employee, agent or legal representative of the other Party for any purpose
  whatsoever. Neither Party is granted any right or authority to assume or to
  create any obligation or responsibility, express or implied, on behalf of or
  in the name of the other Party. In fulfilling its obligations pursuant to
  this Agreement each Party shall be acting as an independent contractor and
  shall not be deemed to have formed any partnership, joint venture or other
  relationship.

  
	
   

  	
   

  	
   

  
	
  19.10

  	
   

  	
  Headings. The headings contained in this Agreement are for
  reference purposes only and shall not affect in any way the meaning or
  interpretation of this Agreement.

  
	
   

  	
   

  	
   

  
	
  19.11

  	
   

  	
  Signature Authority. Each signatory to this Agreement has signature
  authority and, is empowered on behalf of his or her respective Party to
  execute this Agreement.

  
	
   

  	
   

  	
   

  
	
  19.12

  	
   

  	
  Cumulative Remedies. Except as expressly provided in this Agreement,
  and to the extent permitted by law, any remedies described in this Agreement
  are cumulative and not alternative to any other remedies available at law or
  equity.

  

 

[Page intentionally left blank.]

 

 

 

24

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized representatives as of the Effective Date.

 

	
  UNITED THERAPEUTICS

  	
   

  	
  OLSTEN HEALTH SERVICES

  
	
  CORPORATION

  	
   

  	
  (QUANTUM) CORP. (DBA GENTIVA

  
	
   

  	
   

  	
   

  	
  HEALTH SERVICES)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Martine Rothblatt

  	
   

  	
  By:

  	
  /s/
  Robert U. Nixon

  
	
   

  	
  Martine
  Rothblatt

  	
   

  	
   

  	
  Robert
  Nixon

  
	
   

  	
  Chief
  Executive Officer

  	
   

  	
   

  	
  Executive
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
  President, Specialty Pharmaceuticals Division 

  

 

 

 

25

Attachment A

 

Prices

 

UT
Product

 

1.             On and after Commercial Launch,
DISTRIBUTOR shall pay UT [***]% of Average Wholesale Price (“AWP”).

 

2.             Prior to Commercial Launch , UT
shall provide DISTRIBUTOR with UT Product without charge; provided, however,
DISTRIBUTOR shall pay UT [***]% of AWP for any inventory that DISTRIBUTOR has
in its possession as of the date of Commercial Launch which has not been
distributed.

 

3.             UT shall immediately notify
DISTRIBUTOR in writing of any change (and the amount of such change) in the AWP
of any respective UT Product during the term of the Agreement.

 

MiniMed
Product

 

DISTRIBUTOR
shall purchase MiniMed Products at the cost that MiniMed charges UT for such
MiniMed Products, pursuant to the following pricing terms and conditions agreed
to by MiniMed and UT; provided, however, that if at any time during the term of
this Agreement, DISTRIBUTOR notifies UT that DISTRIBUTOR’s aggregate reasonable
and direct costs for purchasing and distributing MiniMed Products exceeds
DISTRIBUTOR’s aggregate net revenues (gross revenues minus reasonable and
customary contractual allowances and trade discounts) for MiniMed Products,
then the Parties shall use their Best Efforts to renegotiate the terms of this
Agreement so that such costs shall not exceed such net revenues:

 

Pricing
Terms and Conditions of MiniMed Product to UT

 

                As UT and DISTRIBUTOR intend
that DISTRIBUTOR is to receive the benefit of any terms hereunder granted by
MiniMed to UT, where MiniMed’s obligations to UT are described herein, the same
shall be obligations of UT to DISTRIBUTOR. 
Pursuant to the Guidelines agreed to by MiniMed and UT effective as of November 1,
1999, MiniMed’s prices and pricing terms and conditions to UT of MiniMed
Product is as follows:

 

1.             Definitions.

 

                As used herein, the terms below
shall have the following meanings, and other capitalized terms shall have the
respective meanings given to such terms in the Distribution Agreement between
UT and DISTRIBUTOR:

 

                “Active Clinical
Site” means a physical clinic location which has at least ten (10) patients
regularly receiving UT-15 Therapy using MiniMed’s pumps and Disposable
Supplies.

 

                “Disposable
Supplies” mean such consumable products, supplies or other
goods which are used in connection with infusion pumps for the delivery of the
UT-15 Therapy, which 

 

26

 

Disposable Supplies include without limitation infusion sets with
catheters and medication reservoirs.

 

                “List Price” means the
price generally published from time to time for a product offered for sale in a
particular market and in particular quantities to third parties unrelated to
MiniMed who are not sales agents, sales representatives, dealers or
distributors, but instead utilize the product for themselves or in providing
medical care to unrelated persons.  For
purposes of reference, MiniMed’s current List Prices for products subject to
this Agreement are set forth in Exhibit A hereto.

 

                “MiniMed’s Cost” shall mean
MiniMed’s direct costs associated with such referenced activity, which shall be
determined on the basis of direct materials and supplies, labor, quality
control/quality assurance activities and overhead and attributable general
administrative costs and facilities which are calculated in accordance with
generally accepted accounting principles.

 

                “Pivotal Clinical
Trial” means that certain clinical trial designated as P01:03/04/05/06 being
conducted as of the effective date of these Guidelines for the purpose of
gathering sufficient data to obtain FDA approval for UT-15 in the treatment of
pulmonary hypertension.

 

                “UT-15 Therapy” means any
health care therapy which utilizes UT-15 subcutaneously or intravenously for
the treatment of any medical condition.

 

2.             Supply of Pumps
and Disposable Supplies.

 

                (a)           MiniMed shall provide Disposable Supplies, at no charge,
to each patient who is enrolled in the Pivotal Clinical Trial as of the
Effective Date for the balance of the Pivotal Clinical Trial (but for a period
terminating no later than June 30, 2001), so long as such patient does not
require more than ten (10) sets of such Disposable Supplies per
month.  In the event that a patient
requires more than ten (10) sets of Disposable Supplies in any given
month, UT shall purchase such Disposable Supplies at MiniMed’s List Price less
a discount equal to thirty percent (30%) of such List Price.  MiniMed’s current List Prices are set forth
in Exhibit A, attached hereto.

 

                (b)           MiniMed Product List Prices may be modified by MiniMed at
any time upon at least sixty (60) days prior written notice to UT, but may not
increase in price by more than any corresponding increase in the consumer price
index as computed on a cumulative basis.

 

                (c)           For any patient who enrolls in the Pivotal Clinical Trial
on or after Effective Date, or in any other clinical trial involving UT-15
which is initiated after the Effective Date, MiniMed shall be paid a monthly
fee for the provision of infusion pumps and Disposable Supplies.  The amount of the monthly fee and a
description of the materials and supplies to be provided by MiniMed as
contemplated by this subsection are set forth in Exhibit B,
attached hereto, expressed as bi-monthly amounts.

 

                (d)           UT shall be responsible for and shall bear all costs
(including reimbursing DISTRIBUTOR for any reasonable costs it may actually
incur) relating to the repair or replacement of any infusion pumps provided to
Clinical Trial Patients enrolled prior to the Effective Date.

 

27

 

3.             Purchase of
Pumps Upon FDA Approval.

 

                (a)           Upon the earlier of (i) sixty (60) days following FDA
approval of UT-15 or (ii) June 30, 2001, UT shall purchase all
MiniMed model 407C infusion pumps previously distributed by MiniMed and rented
by UT as contemplated by subsection 2(c). 
The purchase price of such 407C infusion pumps shall be MiniMed’s List
Price for the 407C pumps, less a discount equal to twenty-five percent (25%) of
such List Price.  For reference purposes,
included in Exhibit A hereto is MiniMed’s current published List Price for
the model 407C infusion pump.  In
addition to the twenty-five percent (25%) discount set forth herein, UT shall
also be entitled to an amortization allowance to be credited against the
purchase price for such 407C infusion pumps, which shall be based on a four (4) year
amortization schedule for the 407C pumps, attached hereto as Exhibit C.  Payment for 407C infusion pumps purchased
pursuant to this section 3(a) shall be made within sixty (60) days of
invoice.

 

                (b)           Upon the FDA approval of UT-15, all patients enrolled in
the Pivotal Clinical Trial who are then using MiniMed model 506 infusion pumps
shall be converted to MiniMed model 407C infusion pumps.  The purchase price for 407C infusion pumps to
be used in place of MiniMed’s 506 infusion pumps shall be MiniMed’s List Price
for the 407C pumps less a discount equal to twenty-five percent (25%) of such
List Price; an additional discount of ten percent (10%) (bringing the total
discount to thirty-five percent (35%)) shall be applied to the extent a MiniMed
model 506 infusion pump is returned to MiniMed in connection with the
distribution of the MiniMed model 407C pump. 
Payment for 407C infusion pumps purchased pursuant to this section 3(b) shall
be made within sixty (60) days of invoice.

 

                (c)           Following FDA approval of UT-15, UT shall purchase
infusion pumps and Disposable Supplies from MiniMed for UT-15 Therapy at the
following prices:

 

(i)                                     407C infusion
pumps (or successor models thereto) at MiniMed’s List Price less a discount
equal to twenty-five percent (25%) of such List Price; and

 

(ii)                                  Disposable
Supplies at MiniMed’s List Price for such Disposable Supplies less a discount
equal to twenty percent (20%) of such List Price.

 

UT
shall pay for the items purchased pursuant to this Section 3(c) within
sixty (60) days of invoice.  The
provisions of this Section 3(c) shall not apply to MiniMed infusion
pumps purchased pursuant to Section 3(a) and 3(b) of these
Pricing Terms and Conditions.

 

4.             Therapy Package

 

Commencing
as of the effective date of these Guidelines and to the extent reasonably
requested by UTHR, MiniMed, through its wholly owned subsidiary Pharmax, Inc.,
a Florida Corporation (“Pharmax”), shall provide therapy packages to UTHR at a
purchase price equal to MiniMed’s Cost of such therapy package plus twenty-five
percent (25%) of such cost.  For the
purposes of this Section, therapy packages may include drugs, devices, or
disposable supplies, however, therapy packages shall not include infusion
pumps, Disposable Supplies and those other items listed on Exhibit A.  MiniMed’s obligation to provide therapy
packages under this Section shall cease immediately in the event that: (i) MiniMed
sells the stock or substantially all 

 

28

 

of the assets of Pharmax; or (ii) there is more than a fifty
percent (50%) change in ownership of Pharmax. 
The sale of stock or assets of Pharmax shall not require the consent of
UTHR, provided, however, that MiniMed shall use commercially reasonable efforts
to give UTHR at least sixty (60) days’ prior written notice of such event.

 

29

EXHIBIT A

TO ATTACHMENT A

 

CURRENT PRICE LIST FOR INFUSION PUMPS AND DISPOSABLE SUPPLIES

 

	
  MiniMedÒ 1999
  Price List

  	
   

  
	
  PRODUCT

  	
   

  	
  MODEL

  	
   

  	
  DESCRIPTION

  	
   

  	
  PRICE ($US)

  	
   

  
	
  MiniMed 407C Infusion Pump

  	
   

  	
  MMT-407CUC

  	
   

  	
  MiniMed Infusion Pump
  Model 407C with 1 warranty and starter kit

  	
   

  	
  $

  	
  6,500

  	
   

  
									

 

Associated
disposables and accessories, see price list for insulin pumps

	
  

  

  MiniMedÒ 1999
  Price List

  	
   

  
	
  PRODUCT

  	
   

  	
  MODEL

  	
   

  	
  DESCRIPTION

  	
   

  	
  PRICE ($US)

  	
   

  
	
  MiniMed 508 Insulin Pump

  	
   

  	
   

  	
   

  	
  MiniMed Infusion Insulin
  Pump Model 508 with 4 year warranty starter kit and remote programmer 

  	
   

  	
  $

  	
  5,495

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MMT — 508UB 

  MMT — 508UC 

  MMT — 508UT 

  MMT — 508UW

  	
   

  	
  Blue

  Charcoal

  Teal (Green)

  White* pump only available
  with prescription from doctor

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remote Programmer

  	
   

  	
  MMT — 500RU

  	
   

  	
  508 Pump Remote Programmer

  	
   

  	
  $

  	
  99

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Reservoirs (24/box)

  	
   

  	
  MMT — 103

  	
   

  	
  3.0 ml MiniMed Reservoir

  	
   

  	
  $

  	
  70

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sof-Set Micro QRÒ (12/box)

  	
   

  	
  MMT — 320 

  MMT — 321

  	
   

  	
  42” Quick Release Soft
  Plastic Cannula (6mm catheter) 

  24” Quick Release Soft Plastic Cannula (6mm catheter)

  	
   

  	
  $

  	
  120
  

  $120

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sof-Set Ultimate QRÒ (12/box)

  	
   

  	
  MMT — 315

  	
   

  	
  42” Quick Release Soft
  Plastic Cannula Set $120 MMT — 316 24” Quick Release Soft Plastic Cannula Set
  $120 Sof-Set® (24/box) MMT — 111 42” Soft Plastic Cannula Set $185 MMT — 112
  24” Soft Plastic Cannula Set $185 SilhouetteTM (10/box) MMT - 371
  43” Full Set (10) complete sets)

  	
   

  	
  $

  	
  97

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MMT — 372 

  	
   

  	
  43” Combo Set (10 sites/5
  tubing sets)

  	
   

  	
  $

  	
  80
  

  	
   

  
	
   

  	
   

  	
  MMT — 373

  	
   

  	
  23” Full Set (10 complete
  sets)

  	
   

  	
  $

  	
  97
  

  	
   

  
	
   

  	
   

  	
  MMT — 374

  	
   

  	
  23” Combo Set (10 sites/5
  tubing sets)

  	
   

  	
  $

  	
  80

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Polyfin QRÒ (24/box)

  	
   

  	
  MMT — 106

  	
   

  	
  42” Bent Needle Infusion
  Set

  	
   

  	
  $

  	
  98

  	
   

  
	
   

  	
   

  	
  MMT — 165

  	
   

  	
  42” Quick Release Bent
  Needle Infusion Set

  	
   

  	
  $

  	
  150

  	
   

  
	
   

  	
   

  	
  MMT — 306

  	
   

  	
  24” Bent Needle Infusion
  Set with wings

  	
   

  	
  $

  	
  98

  	
   

  
	
   

  	
   

  	
  MMT — 307

  	
   

  	
  42” Bent Needle Infusion
  Set with wings

  	
   

  	
  $

  	
  98

  	
   

  
	
   

  	
   

  	
  MMT — 365

  	
   

  	
  42” Quick Release Bent
  Needle Infusion Set w/wings

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MMT — 366

  	
   

  	
  24” Quick Release Bent
  Needle Infusion Set w/wings

  	
   

  	
  $

  	
  150

  	
   

  

 

30

 

	
  PolyfinÒ (24/box)

  	
   

  	
  MMT — 106

  	
   

  	
  42” Bent Needle Infusion
  Set

  	
   

  	
  $

  	
  98

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sof-Serterä

  	
   

  	
  MMT — 300

  	
   

  	
  Automatic Sof-Set
  Insertion Device

  	
   

  	
  $

  	
  49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PolyskinÒ (50/box)

  	
   

  	
  MMT — 134

  	
   

  	
  Transparent Dressing (5cm
  x 7cm)

  	
   

  	
  $

  	
  34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.V. 3000 (100/box)

  	
   

  	
  MMT — 174

  	
   

  	
  Transparent Dressing (6cm
  x 7cm)

  	
   

  	
  $

  	
  49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.V. Prep (50/box)

  	
   

  	
  MMT — 173

  	
   

  	
  Antiseptic Skin Prepping
  Pads

  	
   

  	
  $

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Disposable Power Kit (3
  sets)

  	
   

  	
  MMT — 104

  	
   

  	
  Nine (9) 1.5 Volt
  Batteries Rayovac Model G #675

  	
   

  	
  $

  	
  26

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shower-Pak (30/pk)

  	
   

  	
  MMT — 117

  	
   

  	
  Plastic Shower Bags to
  hold pump

  	
   

  	
  $

  	
  19

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BOOKS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACC 110

  	
   

  	
  The Insulin Pump Therapy
  Book  

  	
   

  	
  $

  	
  19.00
  

  	
   

  
	
   

  	
   

  	
  ACC 111

  	
   

  	
  Counting Carbohydrates

  	
   

  	
  $

  	
  6.00

  	
   

  
	
   

  	
   

  	
  ACC 112

  	
   

  	
  Deliciously Healthy Favorite
  Foods Cookbook

  	
   

  	
  $

  	
  19.95

  	
   

  
	
   

  	
   

  	
  ACC 113

  	
   

  	
  Teens Pumping it Up!

  	
   

  	
  $

  	
  12.95

  	
   

  
	
  MISCELLANEOUS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediBand

  	
   

  	
  ACC 118 

  	
   

  	
  MediBand, emergency
  medical ID, notifies person as having diabetes and on an insulin pump 

  	
   

  	
  $

  	
  6.95

  	
   

  
	
  Max the MiniMed Moose

  	
   

  	
  ACC 119

  	
   

  	
  Max the Moose, popular
  bean bag animal

  	
   

  	
  $

  	
  6.95

  	
   

  

 

Prices
subject to change without notification

Sof-Set, QR, Sof-Serter and Silhouette are all trademarks of MiniMed Inc.

Polyskin is a registered trademark of Kendall Healthcare Products Company

 

To order call: 800-843-6687 or FAX 800-635-5702

 

MiniMed®

12742 San Fernando Road

Sylmar, CA 91340

800-993-3322      818-362-5956

Web Site http://www.minimed.com

 

31

 

 

EXHIBIT B

TO ATTACHMENT A

 

 

THERAPY KITS AND MONTHLY FEE SCHEDULE

 

 

Kit One

 

	
  Item

  	
   

  	
  Code

  	
   

  	
  Unit

  	
   

  	
  Note

  	
   

  	
  Qty

  	
   

  	
  Price

  	
   

  	
  Extended

  	
   

  
	
  Infusion Sets

  	
   

  	
  MMT111/112

  	
   

  	
  Box

  	
   

  	
  24
  pieces

  	
   

  	
  1

  	
   

  	
  $

  	
  185.00

  	
   

  	
  $

  	
  185.00

  	
   

  
	
  Syringes/Resv

  	
   

  	
  MMT
  103

  	
   

  	
  Box

  	
   

  	
  24
  pieces

  	
   

  	
  1

  	
   

  	
  $

  	
  70.00

  	
   

  	
  $

  	
  70.00

  	
   

  
	
  Batteries

  	
   

  	
  MMT
  104

  	
   

  	
  Pack

  	
   

  	
  9
  pieces

  	
   

  	
  1

  	
   

  	
  $

  	
  26.00

  	
   

  	
  $

  	
  26.00

  	
   

  
	
  IV3000Tape

  	
   

  	
  MMT
  174

  	
   

  	
  Box

  	
   

  	
  lasts
  6 mos.

  	
   

  	
  1

  	
   

  	
  $

  	
  49.00

  	
   

  	
  $

  	
  49.00

  	
   

  
	
  IV Prep Pad

  	
   

  	
  MMT
  173

  	
   

  	
  Box

  	
   

  	
  lasts
  3 mos.

  	
   

  	
  1

  	
   

  	
  $

  	
  12.00

  	
   

  	
  $

  	
  12.00

  	
   

  
	
  Shower Pack

  	
   

  	
  MMT
  117

  	
   

  	
  Box

  	
   

  	
  lasts
  2 mos.

  	
   

  	
  1

  	
   

  	
  $

  	
  19.00

  	
   

  	
  $

  	
  19.00

  	
   

  
	
  Alcohol Prep

  	
   

  	
  HMS32689

  	
   

  	
  Box

  	
   

  	
  lasts
  2 mos.

  	
   

  	
  1

  	
   

  	
  $

  	
  12.00

  	
   

  	
  $

  	
  12.00

  	
   

  
	
  Total Disposable Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  373.00

  	
   

  
	
  Less: 30% Clinical Trial
  Discount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  (111.90

  	
  )

  
	
  Net Disposable Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  261.10

  	
   

  
	
  Monthly Pump Rent (per
  pair of pumps)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  252.64

  	
   

  
	
  Total Bi-Monthly Fee (Net
  Disposable + 2 times Monthly Pump Rent)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  766.38

  	
   

  

 

Start-Up
Kit One

 

	
  Additional Items:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sof-Serter

  	
   

  	
  MMT
  300

  	
   

  	
  Ea

  	
   

  	
  Only
  Need 1

  	
   

  	
  1

  	
   

  	
  $

  	
  49.00

  	
   

  	
  $

  	
  49.00

  	
   

  
	
  Pump Case

  	
   

  	
  ACC
  108

  	
   

  	
  Ea

  	
   

  	
  Only
  Need 1

  	
   

  	
  1

  	
   

  	
  $

  	
  24.95

  	
   

  	
  $

  	
  24.95

  	
   

  
	
  Belt Clip

  	
   

  	
  MMT
  131C

  	
   

  	
  Ea

  	
   

  	
  Only
  Need 1

  	
   

  	
  1

  	
   

  	
  $

  	
  8.00

  	
   

  	
  $

  	
  8.00

  	
   

  
	
  Total One-Time Items

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  81.95

  	
   

  
	
  Less 30% Clinical Trial
  Discount

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  (24.59

  	
  )

  
	
  One-Time Items

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  57.36

  	
   

  
	
  Kit One Bi-Monthly Fee
  from Above

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  766.38

  	
   

  
	
  Start-up Kit One Total
  Cost to UT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  823.74

  	
   

  

 

 

 

32

 

EXHIBIT C

TO ATTACHMENT A

PURCHASE PRICE AND AMORTIZATION

SCHEDULE FOR 407C PUMPS

 

 

	
  List Price per Pump (1
  pump only)

  	
   

  	
  $

  	
  6,500.00

  	
   

  
	
  Less: 25% Discount

  	
   

  	
  $

  	
  (1,625.00

  	
  )

  
	
  Net Price

  	
   

  	
  $

  	
  4,875.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Monthly Amortization
  (assume 4 year life)

  	
   

  	
  $

  	
  101.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Purchase Price to MiniMed
  at end of 1 yr.

  	
   

  	
  $

  	
  3,656.25

  	
   

  
	
  Purchase Price to MiniMed
  at end of 2 yrs.

  	
   

  	
  $

  	
  2,437.50

  	
   

  
	
  Purchase Price to MiniMed
  at end of 3 yrs.

  	
   

  	
  $

  	
  1,218.75

  	
   

  
	
  Purchase Price to MiniMed
  at end of 4 yrs.

  	
   

  	
  $

  	
  —

  	
   

  

 

Note:
In the event that UTHR decided to purchase the pumps at some interim point in
time, the $4,875 net price will be reduced by the amount of $101.56 per month
for the number of months that that the pump has been in service to UTHR.

 

 

33

 

Attachment B

 

UT Trademarks Logotypes and Trade Names

 

UNITED
THERAPEUTICS

 

UNITED
THERAPEUTICS CORPORATION LOGO

 

UNIPROST

 

MEDICINES
FOR LIFE

 

UNITHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34

 

Attachment C

 

Patient Assistance Program Criteria

 

In
order to be eligible as a Patient Assistance Program Patient, the patient must
meet the criteria set forth below:

 

1.                                       Total monthly
household income of patient must be less than or equal to 200% of U.S. Federal
poverty guidelines (calculated on a monthly basis) adjusted for household
size.  (A copy of the U.S. Federal
Poverty Guidelines is attached.  UT shall
provide DISTRIBUTOR with a copy of the U.S. Federal Poverty Guidelines each
year.)

 

2.                                       Patients must
have no sources of alternative drug reimbursement including but not limited to
Medicaid, Medicare, Veterans Administration, and private insurance.

 

3.                                       Patients must
be legal residents of the United States, and receive healthcare services via
the United States healthcare system.

 

Patients
who meet the residency requirements of Paragraph 3 above will qualify for the
program for the period, that such patient is unable to obtain reimbursement due
to pre-existing condition provisions of his or her insurance carrier or due to
clearance or prior authorization waiting periods for insurance coverage.  Once such patient is able to obtain
reimbursement, however, he or she shall not remain eligible for the program.

 

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

 

 

 

 

 

 

 

MiniMedÒ

 

USA:

Sylmar, CA

818-362-5958 · 800-826-2099
(24-hour Help Line within U.S. & Canada)

To order supplies:

800-843-6687 · FAX:
888-268-0200 (within U.S. & Canada)

FAX: 818-362-3788 (outside U.S.)

 

 

 

36

 

WARRANTY

 

MINIMED INC. (“MINIMED”) WARRANTS THE MINIMED
INFUSION PUMP AGAINST DEFECTS IN MATERIALS AND WORKMANSHIP FOR A PERIOD OF 1
YEAR FROM THE DATE OF PURCHASE.

 

THIS WARRANTY IS VALID ONLY UPON THE RECEIPT
BY MINIMED OF A COMPLETED WARRANTY REGISTRATION CARD.  DURING THE WARRANTY PERIOD, MINIMED WILL
REPAIR OR REPLACE, AT ITS DISCRETION, ANY DEFECTIVE PUMP OR SOLENOID MOTOR,
SUBJECT TO THE CONDITIONS AND EXCLUSIONS STATED HEREIN. THIS WARRANTY APPLIES
ONLY TO NEW DEVICES. IN THE EVENT A PUMP IS REPAIRED OR REPLACED, THE WARRANTY
PERIOD WILL NOT BE EXTENDED.

 

THIS WARRANTY IS VALID ONLY IF THE MINIMED
INFUSION PUMP IS USED IN ACCORDANCE WITH THE MANUFACTURER’S INSTRUCTIONS.  THIS WARRANTY WILL NOT APPLY:

 

•                                            IF DAMAGE
RESULTS FROM CHANGES OR MODIFICATIONS MADE TO THE PUMP BY THE USER OR THIRD
PERSONS AFTER THE DATE OF MANUFACTURE;

 

•                                            IF DAMAGE
RESULTS FROM SERVICE OR REPAIRS PERFORMED BY ANY PERSON OR ENTITY OTHER THAN
THE MANUFACTURER;

 

•                                            IF DAMAGE
RESULTS FORM A FORCE MAJEURE
OR OTHER EVENT BEYOND THE CONTROL OF THE MANUFACTURER; OR:

 

•                                            IF DAMAGE
RESULTS FROM NEGLIGENCE OR IMPROPER USE, INCLUDING BUT NOT LIMITED TO IMPROPER
STORAGE, DELIBERATE SUBMERSION IN WATER, PHYSICAL ABUSE SUCH AS DROPPING OR
OTHERWISE.

 

THIS WARRANTY DOES NOT APPLY TO BATTERIES,
INFUSION SETS, RESERVOIRS, AND OTHER ACCESSORIES.

 

THIS WARRANTY SHALL BE PERSONAL TO THE
ORIGINAL USER.  ANY SALE, OR OTHER
TRANSFER OR USE OF THE PRODUCT COVERED BY THIS WARRANTY TO OR BY A USER OTHER
THAN THE ORIGINAL USER SHALL CAUSE THIS WARRANTY TO IMMEDIATELY TERMINATE.

 

THE REMEDIES PROVIDED FOR IN THIS
WARRANTY ARE THE EXCLUSIVE REMEDIES AVAILABLE FOR ANY BREACH HEREOF.  NEITHER MINIMED NOR ITS SUPPLIERS OR
DISTRIBUTORS SHALL BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGE
OF ANY NATURE OR KIND CAUSED BY OR ARISING OUT OF A DEFECT IN THE PRODUCT.

 

ALL OTHER WARRANTIES, EXPRESS OR
IMPLIED, ARE EXCLUDED, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE.

 

 

 

37

 

13428      Federal Register
/ Vol. 64, No. 52 / Thursday, March 18, 1999 / Notices

 

FEDERAL RESERVE SYSTEM

 

Sunshine Act Meeting

 

TIME AND DATE: Approximately 11:15 a.m., Tuesday, March 23,
1999, following a recess at the conclusion of the open meeting.

 

PLACE: Marriner S. Eccles Federal Reserve Board
Building, 20th and C Streets, NW., Washington, DC 20551.

 

STATUS: Closed.

 

MATTERS TO BE CONSIDERED:

 

1.  Personnel actions (appointments, promotions,
assignments, reassignments, and salary actions) involving individual
Federal Reserve System employees.

 

2.  Any matters carried forward from a previously
announced meeting.

 

CONTACT PERSON FOR MORE INFORMATION:

 

Lynn
S. Fox, Assistant to the Board; 

(202) 452-3204.

 

SUPPLEMENTARY INFORMATION: You may call (202) 452-3206
beginning at approximately 5 p.m. two business days before the meeting for
a recorded announcement of bank and bank holding company applications scheduled
for the meeting; or you may contact the Board’s Web site at http://
www.federalreserve.gov for an electronic announcement that not only lists
applications, but also indicates procedural and other information about the
meeting.

 

Dated: March 16, 1999.

 

Robert deV. Frierson,

Associate Secretary of the
Board.

 

[FR Doc. 99-6806 Filed 3-16-99; 3:55 pm]

 

BILLING CODE 6210-01-M

 

DEPARTMENT
OF HEALTH AND HUMAN SERVICES

 

Office of the Secretary

 

Annual Update of the HHS Poverty
Guidelines

 

AGENCY: Department of Health and Human Services.

 

ACTION:
Notice.

 

 

38

 

 

SUMMARY:
This notice provides an update of the HHS poverty guidelines to account for
last (calendar) year’s increase in prices as measured by the Consumer Price
Index.

 

EFFECTIVE DATE: These guidelines go into effect on
the day they are published (unless an office administering a program using the
guidelines specifies a different effective date for that particular program.)

 

ADDRESSES: Office of the Assistant Secretary for
Planning and Evaluation,

 

Room 404E,
Humphrey Building, 

Department of Health and Human 

Services (HHS), Washington, DC 20201.

 

FOR FURTHER INFORMATION CONTACT:  For
information about how the poverty guidelines are used in a particular program, contact
the Federal (or other) office which is responsible for that program.

 

For general information
about the poverty guidelines (but NOT for information about a particular
program—such as the Hill-Burton Uncompensated Services Program—that uses the
poverty guidelines), contact Gordon Fisher, Office of the Assistant Secretary
for Planning and Evaluation, Room 404E, Humphrey Building, Department of
Health and Human Services, Washington, DC 20201—telephone: (202) 690-5880;
persons with internet access may visit the poverty guidelines internet site at
<http:// aspe.os.dhhs.gov/poverty/poverty.htm>.

 

For
information about the Hill-Burton Uncompensated Services Program (no-fee
or reduced-fee health care services at certain hospitals and other health care
facilities for certain persons unable to pay for such care), contact the Office
of the Director, Division of Facilities Compliance and Recovery, HRSA, HHS,
Twinbrook Metro Plaza, 12300 Twinbrook Parkway, Suite 520, Rockville,
Maryland 20857—telephone: (301) 443-5656 or 1-800-638-0742 (for callers outside
Maryland) or 1-800-492-0359 (for callers in Maryland); persons with internet
access may visit the Division of Facilities Compliance and Recovery internet
home page site at <http://www.hrsa.gov/osp/dfcr>. The Division of
Facilities Compliance and Recovery notes that as set by 42 CFR 124.505(b), the
effective date of this update of the poverty guidelines for facilities
obligated under the Hill-Burton Uncompensated Services Program is sixty days
from the date of this publication.

 

For
information about the percentage multiple of the poverty guidelines to be used
on immigration forms such as INS Form 1-864, Affidavit
of Support, contact the U.S. Immigration and Naturalization Service. To get a
copy of the most recent poverty guidelines published by the Immigration and
Naturalization Service, call 1-800-870-3676 and ask for Form I-864. To
obtain information on the most recent poverty guidelines call (202) 514-2607.
Persons with internet access may obtain the information from the Immigration
and Naturalization Service internet site at <http://www.ins.usdoj.gov>,
and may download the affidavit of support forms and poverty guidelines from
<http://www.ins.usdoj.gov/forms/download/i-864pkg.htm>.

 

 

39

 

Under an amendment
to the Older Americans Act, the figures in this notice are the figures that
state and area 

agencies on aging should use to 

determine “greatest economic need” for Older Americans Act programs. For information about Older Americans Act programs, contact
Carol Crecy, Administration on Aging, HHS—telephone: (202) 619-0011.

 

For
information about the Department of Labor’s Lower Living Standard Income
Level (an alternative eligibility criterion with the poverty
guidelines for certain Job Training Partnership Act programs), contact Ronald
E. Putz, Director, Office of Employment and Training Programs, U.S. Department
of Labor—telephone: (202) 219-5229, voicemail 173; persons with internet access
may visit the Employment and Training Administration’s Lower Living Standard
Income Level internet site at <http://www.wdsc.org/techcouncil/
prototypes/llsil/llsil.htm>.

 

For
information about the number of people in poverty (since 1959) or about
the Census Bureau (statistical) poverty thresholds, contact
the HHES Division, Room 1462, Federal Office Building #3, U.S. Bureau of
the Census, Washington, DC 20233—telephone: (301) 457-3242; persons with
internet access may visit the Poverty section of the Census Bureau’s World Wide
Web site at <http:/ /www.census.gov/hhes/www/ poverty.html>.

 

1999 POVERTY GUIDELINES FOR
THE 

48 CONTIGUOUS STATES AND THE 

DISTRICT OF COLUMBIA

 

	
  Size of family unit

  	
   

  	
  Poverty guide-

  line

  	
   

  
	
  1

  	
   

  	
  $

  	
  8,240

  	
   

  
	
  2

  	
   

  	
  11,060

  	
   

  
	
  3

  	
   

  	
  13,880

  	
   

  
	
  4

  	
   

  	
  16,700

  	
   

  
	
  5

  	
   

  	
  19,520

  	
   

  
	
  6

  	
   

  	
  22,340

  	
   

  
	
  7

  	
   

  	
  25,160

  	
   

  
	
  8

  	
   

  	
  27,980

  	
   

  
					

 

For
family units with more than 8 members, add $2,820 for each additional member.
(The same increment applies to smaller family sizes also, as can be seen in the
figures above.)

 

1999 POVERTY GUIDELINES FOR

ALASKA

 

	
  Size of family unit

  	
   

  	
  Poverty guide-

  line

  	
   

  
	
  1

  	
   

  	
  $

  	
  10,320

  	
   

  
					

 

 

40

 

 

                Federal Register / Vol. 64, No. 52 / Thursday, March 18,
1999 / Notices  13429

 

1999 POVERTY GUIDELINES FOR

ALASKA—Continued

 

	
  Size of family unit

  	
   

  	
  Poverty guide-

  line

  	
   

  
	
  2

  	
   

  	
  13,840

  	
   

  
	
  3

  	
   

  	
  17,360

  	
   

  
	
  4

  	
   

  	
  20,880

  	
   

  
	
  5

  	
   

  	
  24,400

  	
   

  
	
  6

  	
   

  	
  27,920

  	
   

  
	
  7

  	
   

  	
  31,440

  	
   

  
	
  8

  	
   

  	
  34,960

  	
   

  

 

For family units
with more than 8 members, add $3,520 for each additional member. (The same
increment applies to smaller family sizes also, as can be seen in the
figures above.)

 

1999 POVERTY GUIDELINES FOR

HAWAII

 

	
  Size of family unit

  	
   

  	
  Poverty guide-

  line

  	
   

  
	
  1

  	
   

  	
  $

  	
  9,490

  	
   

  
	
  2

  	
   

  	
  12,730

  	
   

  
	
  3

  	
   

  	
  15,970

  	
   

  
	
  4

  	
   

  	
  19,210

  	
   

  
	
  5

  	
   

  	
  22,450

  	
   

  
	
  6

  	
   

  	
  25,690

  	
   

  
	
  7

  	
   

  	
  28,930

  	
   

  
	
  8

  	
   

  	
  32,170

  	
   

  
					

 

For
family units with more than 8 members, add $3,240 for each additional member.
(The same increment applies to smaller family sizes also, as can be seen in the
figures above.)

 

(Separate
poverty guideline figures for Alaska and Hawaii reflect Office of Economic
Opportunity administrative practice beginning in the 1966-1970 period. Note
that the Census Bureau poverty thresholds—the primary version of the poverty
measure—have never had separate figures for Alaska and Hawaii. The poverty
guidelines are not defined for Puerto Rico, the U.S. Virgin Islands, American
Samoa. Guam, the Republic of the Marshall Islands, the Federated States of
Micronesia, the Commonwealth of the Northern Mariana Islands, and Palau. In
cases in which a Federal program using the poverty guidelines serves any of
those jurisdictions, the Federal office which administers the program is
responsible for deciding whether to use the contiguous-states-and-DC guidelines
for those jurisdictions or to follow some other procedure.)

 

The
preceding figures are the 1999 update of the poverty guidelines required by
section 673(2) of the Omnibus Budget Reconciliation Act (OBRA) of 1981
(Pub.L. 97-35.) As required by law, this update reflects last year’s change in
the Consumer Price 

Index (CPI-U); it was done using the same procedure used in previous years.

 

 

41

 

Section 673(2) of OBRA-1981 (42 U.S.C.
9902(2)) requires the use of the poverty guidelines as an eligibility criterion
for the Community Services Block Grant program. The poverty guidelines are also
used as an eligibility criterion by a number of other Federal programs (both
HHS and non-HHS.) Due to confusing legislative language dating back to 1972,
the poverty guidelines have sometimes been mistakenly referred to as the “OMB”
(Office of Management and Budget) poverty guidelines or poverty line. In fact,
OMB has never issued the guidelines; the guidelines are issued each year by the
Department of Health and Human Services (formerly by the Office of Economic
Opportunity/Community Services Administration). The poverty guidelines may be
formally referenced as “the poverty guidelines updated annually in the Federal
Register by the U.S. Department of Health and Human Services under authority of
42 U.S.C. 9902(2).”

 

The poverty
guidelines are a simplified version of the Federal Government’s statistical
poverty thresholds used by the Bureau of the Census to prepare its statistical
estimates of the number of persons and families in poverty. The poverty
guidelines issued by the Department of Health and Human Services are used for
administrative purposes—for instance, for determining whether a person or
family is financially eligible for assistance or services under a particular
Federal program. The poverty thresholds are used primarily for statistical
purposes. Since the poverty guidelines in this notice—the 1999
guidelines—reflect price changes through calendar year 1998, they are
approximately equal to the poverty thresholds for calendar year 1998 which the
Census Bureau will issue in late summer or autumn 1999. (A preliminary version
of the 1998 thresholds is now available from the Census Bureau.)

 

In certain cases,
as noted in the relevant authorizing legislation or program regulations, a
program uses the poverty guidelines as only one of several eligibility
criteria, or uses a percentage multiple of the guidelines (for example, 125
percent or 185 percent of the guidelines.) Non-Federal organizations which use
the poverty guidelines under their own authority in non-Federally-funded
activities also have the option of choosing to use a percentage multiple of the
guidelines such as 125 percent or 185 percent.

 

 

42

 

While
many programs use the guidelines to classify persons or families as either
eligible or ineligible, some other programs use the guidelines for the purpose
of giving priority to lower-income persons or families in the provision of
assistance or services.

 

In some cases,
these poverty guidelines may not become effective for a particular program
until a regulation or notice specifically applying to the program in question
has been issued.

 

The
poverty guidelines given above should be used for both farm and non-farm
families. Similarly, these guidelines should be used for both aged and non-aged
units. The poverty guidelines have never had an aged/non-aged distinction; only
the Census Bureau (statistical) poverty thresholds have separate figures for
aged and non-aged one-person and two-person units.

 

Definitions

 

There is no universal administrative definition of
“family,” “family unit,” or “household” that is valid for all programs that use
the poverty guidelines. Federal programs in some cases use administrative
definitions that differ somewhat from the statistical definitions given below;
the Federal office which administers a program has the responsibility for
making decisions about administrative definitions. Similarly, non-Federal
organizations which use the poverty guidelines in non-Federally-funded
activities may use administrative definitions that differ from the statistical
definitions given below. In either case, to find out the precise definitions used
by a particular program, one must consult the office or organization
administering the program in question.

 

The following statistical definitions (derived for the
most part from language used in U.S. Bureau of the Census. Current Population
Reports, Series P60-185 and earlier reports in the same series) are made
available for illustrative purposes only; in other words, these statistical
definitions are not binding for administrative purposes.

 

(a)   Family. A
family is a group of two or more persons related by birth, marriage, or
adoption who live together; all such related persons are considered as members
of one family. For instance, if an older married couple, their daughter and her
husband and two children, and the older couple’s nephew all lived in the same
house or apartment, they would all be considered members of a single family.

 

(b)   Unrelated
individual. An unrelated individual is a person 15 years old or over (other
than an inmate 

of an institution) who is not living with

 

 

43

 

13430      Federal Register
/ Vol. 64, No. 52 / Thursday, March 18, 1999 / Notices

 

any
relatives. An unrelated individual may be the only person living in a house or
apartment, or may be living in a house or apartment (or in group quarters such
as a rooming house) in which one or more persons also live who are not related
to the individual in question by birth, marriage, or adoption. Examples of
unrelated individuals residing with others include a lodger, a foster child, a
ward, or an employee.

 

(c)   Household.
As defined by the Bureau of the Census for statistical purposes, a household
consists of all the persons who occupy a housing unit (house or apartment),
whether they are related to each other or not. If a family and an unrelated
individual, or two unrelated individuals, are living in the same housing unit,
they would constitute two family units (see next item), but only one household.
Some programs, such as the Food Stamp Program and the Low-Income Home Energy
Assistance Program, employ administrative variations of the “household” concept
in determining income eligibility. A number of other programs use
administrative variations of the “family” concept in determining income
eligibility. Depending on the precise program definition used, programs using a
“family” concept would generally apply the poverty guidelines separately to
each family and/or unrelated individual within a household if the household
includes more than one family and/or unrelated individual.

 

(d)   Family
unit. “Family unit” is not an official U.S. Bureau of the Census term, although
it has been used in the poverty guidelines Federal Register notice since 1978.
As used here, either an unrelated individual or a family (as defined above)
constitutes a family unit. In other words, a family unit of size one is an
unrelated individual, while a family unit of two/three/etc. is the same as a
family of two/three/etc.

 

Note that this notice no longer provides a definition
of “income.” This is for two reasons. First, there is no universal
administrative definition of “income” that is valid for all programs that use
the poverty guidelines. Second, in the past there has been confusion regarding
important differences between the statistical definition of income and various
administrative definitions of “income” or “countable income.” The precise
definition of “income” for a particular program is very sensitive to the
specific needs and purposes of that program. To determine, for example, whether
or not taxes, collegescholarships, or other particular types of income should
be counted as “income” in determining eligibility for a specific

 

 

44

 

program,
one must consult the office or organization administering the program in
question; that office or organization has the responsibility for making
decisions about the definition of “income” used by the program (to the extent
that the definition is not already contained in legislation or regulations.)

 

Persons
seeking the statistical definition of income that is used to determine official
income and poverty statistics may consult U.S. Bureau of the Census, Current
Population Reports, Series P60-201, Poverty in the United States: 1997,
Washington, D.C., U.S. Government Printing Office, September 1998, pp. A-1
and A-2.

 

Dated: March 8, 1999.

 

Donna E. Shalala,

 

Secretary of Health and Human Services.  

[FR Doc. 99-6538 Filed 3-17-99; 8:45 am]
 BILLING CODE 4150-04-P

 

DEPARTMENT
OF HEALTH AND HUMAN SERVICES

 

Food and Drug Administration

 

[Docket No. 98N-0363]

 

Agency Information Collection
Activities; Announcement of OMB Approval; New Animal Drugs for Investigational
Use

 

AGENCY: Food and Drug Administration, HHS.

 

ACTION:
Notice.

 

SUMMARY: The Food and Drug Administration (FDA) is
announcing that a collection of information entitled “New Animal Drugs for
Investigational Use” has been approved by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act of 1995.

 

FOR FURTHER INFORMATION CONTACT:

 

Denver
Presley, Office of Information Resources Management (HFA-250), Food and Drug
Administration, 5600 Fishers Lane, Rockville, MD 20857, 301-827-1472.

 

SUPPLEMENTARY INFORMATION: In the

 

Federal
Register of December 2, 1998 (63 FR 66548), the agency announced that the
proposed information collection had been submitted to OMB for review and
clearance under 44 U.S.C. 3507. An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information unless it
displays a currently valid OMB control number. OMB has now approved the
information collection and has assigned OMB control number 0910-0117. The
approval expires on January 31, 2002. A copy of the supporting statement
for this information collection is available on the Internet at
“http://www.fda.gov/ ohrms/dockets”.

 

 

 

Dated: March 11, 1999.

 

William K. Hubbard,

 

Acting Deputy Commissioner for Policy.  

[FR Doc. 99-6529 Filed 3-17-99; 8:45 am]

 

BILLING CODE 4160-01-F

 

 

 

45

 

DEPARTMENT OF HEALTH AND HUMAN
SERVICES

 

Food and Drug Administration

 

[Docket No. 99F-0460]

 

Akzo Nobel Chemicals, Inc.;
Filing of Food Additive Petition

 

AGENCY: Food and Drug Administration, HHS.

 

ACTION:
Notice.

 

 

SUMMARY: The Food and Drug Administration (FDA) is
announcing that Akzo Nobel Chemicals, Inc., has filed a petition proposing
that the food additive regulations be amended to provide for the safe use of
3,6,9-triethyl- 
3,6,9-trimethyl-1,4,7-triperoxynonane as a modifier in the production of
olefin polymers used as components of food-contact articles.

 

FOR FURTHER INFORMATION CONTACT: Vir D. Anand, Center
for Food Safety and Applied Nutrition (HFS-215), Food and Drug Administration,
200 C St. SW., Washington, DC 20204, 202-418-3081.

 

SUPPLEMENTARY INFORMATION: Under the Federal Food,
Drug, and Cosmetic Act (sec. 409(b) (5) (21 U.S.C. 348(b)(5))),
notice is given that a food additive petition (FAP 9B4646) has been filed by
Akzo Nobel Chemicals, Inc., c/o Keller and Heckman LLP, 1001 G St. NW.,
suite 500 West, Washington, DC 20001. The petition proposes to amend the food
additive regulations in § 177.1520 Olefin polymers
(21 CFR 177.1520) and in § 177.2600 Rubber articles intended
for repeated use (21 CFR 177.2600) to provide for the safe use of
3,6,9-triethyl- 3,6,9-trimethyl-1.4,7-triperoxynonane as a modifier in the
production of olefin polymers used as components of food-contact articles.

 

The
agency has determined under 21 CFR 25.32(i) that this action is of a type
that does not individually or cumulatively have a significant effect on the
human environment. Therefore, neither an environmental assessment nor an
environmental impact statement is required.

 

 

 

46

 

 

Attachment D

 

UT Standard Warranty

 

UT
warrants that all of its Product shall: (i) be free from defects in
design, material and workmanship; (ii) be in compliance with all
applicable law and regulation, including without limitation all regulatory
requirements of the FDA, including those related to the adulteration or
misbranding of Product within the meaning of Section 501 and 502 of the
Food Drug and Cosmetics Act; (iii) not be articles which may not be
introduced into interstate commerce pursuant to the requirements of Sections
505, 514, 515, 516 or 520 thereof; and (iv) be manufactured in accordance
with current FDA Good Manufacturing Practice as required by 21 C.F.R. 210 and
820.

 

MiniMed Standard Warranty

 

Attached

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47

 

Attachment E

Policies and Procedures relating to the MiniMed Product

 

A.            Return of Products.  No Products may be returned to UT by
DISTRIBUTOR without the prior written authorization of UT; any such return may
result in a commercially reasonable fee being charged to DISTRIBUTOR’s account,
the amount of such restocking fee to be agreed to by DISTRIBUTOR.

 

B.            DISTRIBUTOR’s Status.  DISTRIBUTOR shall buy the Products from UT
(in such amounts as DISTRIBUTOR shall in its sole discretion determine) and
distribute and sell them in its own name, for its own account and at its own
risk.  These Policies and Procedures do
not and shall not be construed to create the relationship of agent, employee,
partnership, joint venture or association between the parties, but is an
agreement between independent contractors. 
DISTRIBUTOR expressly acknowledges and agrees that it is not an agent or
representative of UT and may not at any time hold itself out as such to any
third party or act in the name of or on behalf of UT or bind UT or create any
obligations between UT and third parties without UT’s prior written consent.

 

C.            DISTRIBUTOR’s Obligations.  The obligations of DISTRIBUTOR include the
following undertakings:

 

(i)            Inventory.  DISTRIBUTOR agrees to maintain at all times
during the term of this Agreement an inventory of the Products in good and
saleable condition at a level sufficient to satisfy patient requirements for
sixty (60) days and subject to MiniMed’s timely acceptance and fulfillment of
DISTRIBUTOR’ s orders as placed by UT.

 

(ii)           Inspection.  DISTRIBUTOR shall allow representatives of UT
and MiniMed access to DISTRIBUTOR’s business premises at any time upon
reasonable advance notice and during normal business hours for the purpose of,
among other things, monitoring compliance with these Policies and Procedures.

 

(iii)          Device
Tracking.  DISTRIBUTOR shall provide
UT and MiniMed with a written inventory and delivery report monthly within five
(5) business days of each MiniMed’s fiscal month end in a form acceptable
to MiniMed.  Such report shall be
delivered to UT and MiniMed either by electronic mail or on a computer disk
compatible with MiniMed’s information systems. 
Such report shall include (i) the quantities of the MiniMed
Products delivered by DISTRIBUTOR to patients during such period and (ii) any
documents or other information relating to the delivery of the MiniMed Products
to patients which UT or MiniMed may reasonably require, including, without
limitation, a schedule of infusion pumps delivered by reference to patient name
and address or patient number, pump serial number, prescribing physician name,
and prescribing physician zip code and a schedule of Disposable Supplies
delivered to patients by reference to patient name and address or patient
number.  All such obligations are
conditioned on and subject to any applicable legal requirements including
without limitation those 

 

 

 

48

 

relating to patient confidentiality and data
security.  A breach of this covenant
shall constitute a material breach of these Policies and Procedures.

 

(iv)          Labels.  DISTRIBUTOR shall not change or remove the
labels affixed to the Products, nor shall DISTRIBUTOR add anything to the
exterior of the Products or packaging without the prior written authorization
of UT and MiniMed.

 

(v)           Direct
Delivery.  DISTRIBUTOR shall purchase
the Products from UT only and shall deliver such the Products only to end users
or clinics or hospitals in connection with Uniprost therapy and not to other
agents, distributors, sub-distributors, dealers or the like without the prior
written consent of UT.

 

(vi)          Insurance.  DISTRIBUTOR shall maintain in full force and
effect policies of insurance with reputable carriers in such amounts and
insuring against such risks as are reasonably customary for the business of
DISTRIBUTOR.  Notwithstanding the
foregoing, in no event shall DISTRIBUTOR fail to maintain liability insurance
in a minimum amount of $2,000,000 per occurrence or property insurance in an
amount sufficient to cover the value of the Products.

 

D.            Compliance
with Laws and Regulations/ Records and Reporting.

 

(i)            DISTRIBUTOR
agrees that no Products will be willfully or knowingly or negligently
distributed by DISTRIBUTOR or its agents in violation of applicable laws or
regulations, including, without limitation laws and regulations governing the
distribution of medical devices.

 

(ii)           DISTRIBUTOR
shall maintain complete and accurate records, in tangible form or electronic
database, of all sales and deliveries of Products to end users.  The report must enable UT and MiniMed to
identify the end user of the MiniMed Products distributed within four (4) working
days and must contain the following information: (a) for infusion pumps:
model number; serial number; the date of shipment by MiniMed to DISTRIBUTOR;
the name, address, telephone number and social security number (if available)
or other unique identifying code of the user (patient) receiving MiniMed
Products, the date the user received the MiniMed Products, and the name,
mailing address, and telephone number of the prescribing physician; (b) for
infusion sets: model number, lot number, the name and address or patient number
of the user (patient), and the name, mailing address and telephone number of
the prescribing physician; and (c) for UT Products, the name, address,
telephone number and social security number (if available) or other unique
identifying code of the user (patient) receiving UT Products, the date the user
received the UT Products, and the name, mailing address, and telephone number
of the prescribing physician. 
DISTRIBUTOR shall be solely responsible for complying with privacy and
data protection laws and regulations. 
All such obligations are conditioned on and subject to any applicable
legal requirements including without limitation those relating to patient
confidentiality and data security

 

 

 

49

 

(iii)          DISTRIBUTOR
shall provide UT and MiniMed with the following information if any Products are
returned to UT, MiniMed or DISTRIBUTOR: model number; serial number; the date
the Products were initially shipped by UT or MiniMed to DISTRIBUTOR; and the
means (carrier) used to return the Products. 
DISTRIBUTOR will provide UT and MiniMed with the following information
if any Products are permanently disposed of: model number; serial number; the
date the Products were initially shipped by UT or MiniMed to DISTRIBUTOR; the
date the Products were permanently disposed of; and the mechanism of permanent
disposition of the Products.  DISTRIBUTOR
shall provide the same information to the FDA within ten (10) days of a
request therefor.

 

(iv)          DISTRIBUTOR
shall make all of its records relating solely to the Products available at its
premises for audit by representatives of UT or MiniMed at any time during
normal business hours with reasonable advance notice to ensure compliance with
the terms of these Policies and Procedures, and shall, upon UT’s or MiniMed’s
request, send a copy of such records (or any portion thereof) to UT or MiniMed
for review.  DISTRIBUTOR further agrees
to maintain all additional records reasonably required by UT or MiniMed in
order to ensure traceability of the Products sold or delivered hereunder by
DISTRIBUTOR.  DISTRIBUTOR further agrees
to assume responsibility and guarantee performance of all reporting and record
keeping required by the FDA and any other applicable governing body and
regulator, but only to the extent DISTRIBUTOR is notified by UT in writing in
advance of such requirements. 
DISTRIBUTOR agrees to deliver to UT and MiniMed all records and customer
lists in its possession relating to the Products within 30 days following the
expiration or termination of the Agreement by either party, retaining only
those documents required for compliance with applicable regulations, and
providing UT and MiniMed copies of all such retained documents.  All such obligations are conditioned on and
subject to any applicable legal requirements including without limitation those
relating to patient confidentiality and data security

 

(v)           DISTRIBUTOR
will inform UT, MiniMed and the FDA if DISTRIBUTOR becomes aware of any
“significant event.”  A “significant
event” includes any report from a health care professional, user of any of the
Products or other competent person that reasonably suggests any of the Products
caused or contributed to a death or injury, or, in the case of the MiniMed
Products, has malfunctioned in such a way that a reoccurrence of the
malfunction or failure would be likely to cause or contribute to death or
injury.  Without limiting the generality
of the foregoing, DISTRIBUTOR shall report to UT, MiniMed and the FDA any
event, occasion or circumstance in which DISTRIBUTOR becomes aware there has
been a deterioration in the characteristics or performance of any of the
MiniMed Products, or any inaccuracies in any written material provided with or to
users of any of the MiniMed Products which is intended to accompany such
MiniMed Products, which might lead to death of a patient who uses such MiniMed
Products or might lead to the significant deterioration of such patient’s state
of health.  DISTRIBUTOR agrees to
cooperate fully with UT, MiniMed, 

 

 

 

50

 

and, at UT’s or MiniMed’s request,
participate in any investigation undertaken by UT or MiniMed in connection with
any such event.  Such report shall be
made and delivered to UT and MiniMed within five (5) working days after
DISTRIBUTOR becomes aware of such significant event and to the FDA within ten (10) business
days thereof.

 

E.             Delivery
Time.  UT and MiniMed shall use
reasonable efforts to deliver the Products pursuant to requests contained in
UT’s purchase orders.  Notwithstanding
the foregoing, UT and MiniMed shall not be responsible for delays in delivery,
and such delivery delays shall not give rise to a claim for damages.

 

F.             No
Supply Obligation.  UT and MiniMed
shall not be obligated to fill orders for Products (i) for which
production has ceased or for which it no longer has the right to manufacture or
sell, or (ii) for which delivery has become unreasonably onerous as a
result of any change in legal requirements or regulations.  In the event that: (i) UT or MiniMed
does not fulfill DISTRIBUTOR’s purchase orders for the reasons set forth in
this Section F; and (ii) UT and MiniMed are unable to manufacture,
sell, market and distribute other infusion pumps which are equally suitable for
Uniprost therapy as infusion pumps manufactured by as of the effective date of
the Agreement, then DISTRIBUTOR’s obligations to exclusively use MiniMed
Products (subject to the provisions of the Distribution Agreement between
DISTRIBUTOR and UT) shall cease until such time that MiniMed is able to offer
DISTRIBUTOR infusion pumps which are as suitable for Uniprost therapy as
infusion pumps manufactured by MiniMed as of the effective date of this
Agreement.

 

G.            MiniMed
Industrial and Intellectual Property. 
DISTRIBUTOR acknowledges that MiniMed has granted to UT a non-exclusive,
royalty-free right to use the trademarks affixed by MiniMed to the MiniMed
Products and packaging.  Such grant shall
terminate upon the expiration or termination of UT’s agreement with MiniMed.  DISTRIBUTOR acknowledges that UT has
represented to DISTRIBUTOR that MiniMed and/or its affiliates possess all
necessary right, title and interest in and to all patents, packaging, designs,
trademarks, trade names and logos used on or in connection with the MiniMed
Products.  DISTRIBUTOR shall only use
such trademarks, trade names and logos in compliance with standards and
policies which MiniMed may from time to time determine and MiniMed shall have
the right of prior approval of any such trademarks, trade names and logos on
the advertising materials and brochures utilized by DISTRIBUTOR.  DISTRIBUTOR agrees that during the term of
the Agreement and after its expiration or termination it will not knowingly use
or register, directly or indirectly, any patents, packaging, designs,
trademarks or trade names which may infringe or be confusingly similar with
those owned by MiniMed and/or its affiliates, and shall use trademarks and
trade names of MiniMed pursuant to the license granted hereunder on marketing literature
of DISTRIBUTOR.

 

H.            MiniMed
Documents.  Except as otherwise
expressly provided for in these Policies and Procedures, MiniMed may furnish UT
or DISTRIBUTOR with commercial, technical and other documents and materials
relating to the Products as it deems appropriate, for which MiniMed may charge
a fee to UT or DISTRIBUTOR.  Such
documents and materials are and shall remain the sole property of MiniMed.  Following the expiration or termination of
the Agreement, upon UT’s request, DISTRIBUTOR shall return to UT or MiniMed all
such documents and materials furnished to it by UT or MiniMed.  In the event that DISTRIBUTOR 

 

 

 

51

 

prepares documents or
materials relating to the delivery of the Products to patients and clinics
which offer UniprostTM therapy, such documents and materials, and any copyrights
relating thereto, shall be the sole property of UT or MiniMed, except to the extent
that such materials may reflect the name, trade mark or other proprietary
property of DISTRIBUTOR.  DISTRIBUTOR
shall submit for review and approval such documents and materials and provide
UT and MiniMed with sufficient prior notice to evaluate such documents and
materials.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52

 

AMENDMENT
TO DISTRIBUTION AGREEMENT

 

This
Amendment to Distribution Agreement is made as of this day of August 2002
(the “Effective Date”), by and between United Therapeutics Corporation (“UT”),
a Delaware corporation, 1110 Spring Street, Silver Spring, Maryland 20910, and
Accredo Therapeutics, Incorporated (“DISTRIBUTOR”), a Delaware corporation,
1640 Century Center Parkway, Suite 105, Memphis, Tennessee 38134.

 

A.                                   WHEREAS, UT and
Olsten Health Services (Quantum) Corp. entered into a Distribution Agreement on
March 20, 2000, concerning non-exclusive U.S. distribution of the drug
product REMODULIN (formerly Uniprost);

 

B.                                     WHEREAS, Olsten
Health Services (Quantum) Corp. changed its name to Gentiva Health Services
(Quantum) Corp. and subsequently to Accredo Therapeutics, Inc.; and

 

C.                                     WHEREAS, it is
desirable to revise certain obligations between the parties following FDA
approval and the commercial launch of the UT Product in order to reflect
DISTRIBUTOR’s role as a provider of health care services including pharmacy
services that are separate and distinct from DISTRIBUTOR’s obligations to
market, promote and sell the UT Product and the MiniMed Product.

 

NOW,
THEREFORE, in consideration of mutual promises and covenants hereinafter set
forth, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

 

I

 

In subsection 1.1(r), the
word “UNIPROST” is replaced with the word “REMODULIN”;

 

II

 

The
introductory paragraph in Section 4.1 is hereby replaced in its entirety
with the following:

 

4.1                                          Marketing.  DISTRIBUTOR shall use its Best Efforts to
fund and support ongoing promotion of its distribution of the Products,
consistent with DISTRIBUTOR’ s normal funding and support for its overall
distribution activities.  In addition,
DISTRIBUTOR shall use its Best Efforts to fund and support ongoing promotion,
marketing and sale of its distribution services to physicians, pharmacies,
payers, hospitals, and other healthcare entities as appropriate, and public and
private clinical, health and industrial laboratories; provided, however,
DISTRIBUTOR shall submit to UT for review and approval any marketing material
relating to the UT Product, other than the UT marketing material provided by UT
to DISTRIBUTOR pursuant to Section 5.3, and shall 

 

 

53

 

refrain from using such material until DISTRIBUTOR receives written
approval of such materials from UT.  Such
Best Efforts shall include, but not be limited to:

 

The
introductory paragraph of subsection 4.I(d) shall be replaced in its
entirety with the following:

 

4.1(d)                           Attending and promoting the
availability of the Products and distribution services at appropriate trade
shows involving patients and/or physicians specialties that have a high
propensity or likelihood to diagnose and treat patients suffering from
pulmonary hypertension.  At a minimum,
DISTRIBUTOR will attend the following trade shows or national conferences of
the following organizations in order to evaluate the appropriateness of
exhibiting at these shows:

 

III

 

Section 4.5 is hereby
replaced in its entirety with the following:

 

4.5                                          Product
Specifications.  DISTRIBUTOR
shall maintain the Products in accordance with all directions accompanying the
Products in order to maintain Product within FDA approved specifications.  DISTRIBUTOR shall dispense Products as
prescribed, in accordance with all applicable pharmacy requirements.  The parties acknowledge that UT shall not
have any rights, obligations, responsibilities, oversight or role of any kind
or nature concerning DISTRIBUTOR’s practice of pharmacy in compliance with all
applicable state pharmacy regulations and consistent with DISTRIBUTOR’ s then
current practices.

 

IV

 

Section 4.6 is hereby
replaced in its entirety with the following:

 

4.6                                          Pharmacy and
Home Health Care Services. 
DISTRIBUTOR may create its own patient educational materials concerning
the Products (“Educational Materials”) for distribution by DISTRIBUTOR in
accordance with this Agreement and DISTRIBUTOR’s obligations as a health care
provider and pharmacy; provided, however, that all such Educational Materials (i) shall
be consistent with the content of the UT Product package insert approved by the
FDA, (ii) shall comply with the conditions and requirements of all
applicable state pharmacy regulations mandating the provision of patient
educational materials on prescription drugs and their administration, and (iii) shall
not be used by DISTRIBUTOR to promote, market or sell the Products.  The parties acknowledge that UT shall not
have any rights, obligations, responsibilities, oversight or role of any kind
or nature concerning DISTRIBUTOR’ s practice of pharmacy in compliance with 

 

 

 

54

 

all applicable state pharmacy regulations and consistent
with DISTRIBUTOR’ s then current practices.

 

V

 

Section 5.3 is hereby
replaced in its entirety with the following:

 

5.3                                          UT Promotional
Materials.  UT will
provide DISTRIBUTOR with reasonable quantities of promotional materials when
developed by UT, including but not limited to reprints, brochures, package
inserts, peer review articles and other scientific and medical information
regarding the Products, informational material and other marketing literature,
all of the foregoing created by UT, for use and distribution by DISTRIBUTOR in
accordance with this Agreement. 
DISTRIBUTOR shall not revise, alter or change in any manner the
foregoing materials and their content as provided by UT without UT’s advance
written permission.  Nothing in this
provision requires UT to create any specific promotional materials.

 

VI

 

Other
than as provided in this Amendment to Distribution Agreement, the terms and
provisions of the Distribution Agreement, as amended, shall continue in full
force and effect.  All defined terms in
this Amendment shall have those meanings as defined in the Distribution
Agreement.

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
duly authorized representatives.

 

	
  UNITED THERAPEUTICS

  CORPORATION

  	
   

  	
  

  ACCREDO THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Paul A. Mahon

  	
   

  	
  By:

  	
  /s/
  Thomas W. Bell, Jr. VP

  
	
   

  	
  Paul
  A. Mahon, General Counsel

  	
   

  	
  Printed:

  	
  Thomas
  W. Bell, Jr.

  

 

 

 

55

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