Document:

exv10w10w1

 

Exhibit 10.10.1

AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

     This AMENDMENT to EXECUTIVE EMPLOYMENT AGREEMENT effective as of December
31, 2003, (the “Employment Agreement”), by and among MeriStar Hospitality
Corporation (the “Company”), and MeriStar Hospitality Operating Partnership,
L.P. (the “Partnership”), and Bruce G. Wiles (the “Executive”), is hereby
entered into on this 23rd day of April 2004 by and among the parties.

     For good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the Executive, the Company, and the Partnership, the
parties each agree to amend the Employment Agreement as follows:

     1. The penultimate sentence of Section 1 of the Employment Agreement is
hereby deleted and replaced, in its entirety, by the following sentence:

	   	Notwithstanding the foregoing, in no event shall
the term of
this Agreement extend beyond December 31, 2004, except as
extended by mutual agreement of the parties.

     2. Any conflict between the terms and conditions of this Amendment to
Executive Employment Agreement and the Employment Agreement shall be resolved
in favor of this Amendment to Executive Employment Agreement.

     3. Other than as modified herein, all the terms and provisions of the
Employment Agreement shall remain in full force and effect.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment to
Employment Agreement effective as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	EXECUTIVE:	 	MERISTAR HOSPITALITY CORPORATION
	 
	By:

	 	/s/ Bruce G. Wiles
	 	By:
	 	/s/ Donald D. Olinger	 	 	 	 
	

	 	
 
	 	 	 	
 	 	 	 	 
	

	 	Bruce G. Wiles
	 	Name:

Title:
	 	Donald D. Olinger

Executive Vice President, Chief Financial

Officer, and Treasurer	 	 	 	 

	 	 	 
	 
	MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.

By: MeriStar Hospitality Corporation, its general partner
	 
	By:
	 	/s/ Donald D. Olinger
	
	 	
 
	Name:

Title:
	 	Donald D. Olinger

Executive Vice President, Chief Financial Officer, and Treasurerexv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This
EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of
the 6th day of May, 2004 (the “Effective Date”), by and between HUMAN GENOME
SCIENCES, INC. (the “Company”), and CRAIG A. ROSEN,
Ph.D. (“Executive”).

     1. EMPLOYMENT. The Company shall employ Executive, and Executive shall
continue employment with the Company upon the terms and subject to the
conditions set forth in this Agreement.

     2. TERM OF EMPLOYMENT. The period of Executive’s employment under this
Agreement shall commence on the Effective Date and continue for a period of one
(1) year, and shall automatically be renewed for successive one (1) year
periods thereafter, unless Executive’s employment is terminated in accordance
with Section 5 below or the Company or Executive notifies the other party in
writing, no later than ninety (90) days before the next subsequent anniversary
of the Effective Date, of its or his intention not to renew the rights and
obligations set forth in this Agreement. The period during which Executive is
employed with the Company under this Agreement, including all renewal periods,
is referred to as the “Employment Period.”

     3. DUTIES AND RESPONSIBILITIES. Executive shall serve as the Acting Chief
Operating Officer and President of Research and Development. In such capacity,
Executive shall perform such duties and have the power, authority, and
functions commensurate with such positions in similarly-sized public companies
within the Company’s industry, and have and possess such other authority and
functions consistent with such positions as may be assigned to Executive from
time to time by the Chief Executive Officer. In addition, Executive is a
member of the Board of Directors of the Company (the
“Board”) as of the
Effective Date and shall continue to serve in that capacity for the balance of
his existing term, and the Company will take all commercially reasonable steps,
subject to applicable law, to cause Executive to continue to be nominated for
reelection to the Board throughout the Employment Period. Executive shall
report directly to the Company’s Chief Executive Officer. Except for absences
due to temporary illness, during the Employment Period Executive shall devote
substantially his full time and efforts to the business of the Company and
shall not engage in consulting work or any trade or business activity for his
own account or for or on behalf of any other person or entity that, in the
reasonable judgment of the Company, competes, conflicts or interferes with the
performance of his duties under this Agreement in any way, whether or not such
activity is pursued for gain, profit or other pecuniary advantage. Executive
will be permitted to serve on the scientific advisory board and/or editorial
board of the entities and publications specified on Exhibit A attached
hereto, and, subject to approval by the Company’s Chief Executive Officer and
each successor Chief Executive Officer, to perform certain duties for third
parties that are not associated with the Company, so long as the performance on
such boards or of such duties does not compete, conflict or materially
interfere with the performance of his duties under this Agreement or result in
the violation of any covenant in this Agreement.

     4. COMPENSATION AND BENEFITS.

     (a) BASE SALARY. During the Employment Period, the Company shall
pay Executive a base salary at the annual rate of Four Hundred and Two
Thousand Dollars ($402,000.00) per year, or such higher rate as may be
determined from time to time by the Board (“Base Salary”). Such Base
Salary shall be paid in accordance with the Company’s standard payroll
practice. Once increased, the Base Salary shall not be reduced.

     (b) ANNUAL BONUS. During the Employment Period, Executive shall be
eligible to receive an annual bonus award from time to time at the
discretion of the Board; provided, however, that Executive
shall receive for each fiscal year ending within the Employment Period a
minimum guaranteed bonus award in an amount equal to 10% of Executive’s
Base Salary as in effect for such fiscal year which guaranteed amount
shall be payable without regard to achievement of performance objectives.

     (c) STOCK INCENTIVES. During the Employment Period, Executive shall
be eligible to receive grants of stock options or other equity-based
awards from time to time at the discretion of the Board.

     (d) BENEFIT PLANS. Subject to the terms of such plans, Executive
shall be eligible to participate in or receive benefits under any pension or profit
sharing plan, salary deferral plan, medical,

 

 

dental, vision and
prescription drug benefit plans, life insurance plan, short-term and
long-term disability plans, or any other health, welfare or fringe
benefit plan, generally made available by the Company to
similarly-situated senior executives.

     (e) VACATION. During the Employment Period, Executive shall be
entitled to vacation each year in accordance with the Company’s policies
in effect from time to time, but in no event less than four (4) weeks
paid vacation per calendar year.

     (f) EXPENSE REIMBURSEMENT. The Company shall promptly reimburse
Executive for the ordinary and necessary business expenses incurred by
Executive in the performance of his duties in accordance with the
Company’s customary practices applicable to its senior executives.

     (g) OTHER PERQUISITES. During the Employment Period, Executive
shall be entitled to all perquisites provided by the Company to
similarly-situated senior executives, including an automobile allowance
at the monthly rate of Five Hundred and Eighty Dollars ($580.00), payable
in accordance with the Company’s standard payroll practice for its senior
executives.

     5. TERMINATION OF EMPLOYMENT.

     Executive’s employment with the Company may be terminated during the
Employment Period under the following circumstances:

     (a) DEATH. Executive’s employment with the Company shall terminate
automatically upon Executive’s death.

     (b) TOTAL DISABILITY. The Company may terminate Executive’s
employment due to Executive becoming “Totally Disabled.” For purposes of
this Agreement, Executive shall be “Totally Disabled” if Executive
becomes eligible to receive total disability benefits under the Company’s
long-term disability plan. In the absence of Executive’s receipt of such
long-term disability benefits, the Board may, in its reasonable
discretion based upon appropriate medical evidence, determine that
Executive is Totally Disabled if Executive has been physically or
mentally incapacitated so as to render Executive incapable of performing
the essential functions of Executive’s positions, with or without
reasonable accommodation, for ninety (90) calendar days within any one
hundred and eighty (180)-day period.

     (c) TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate
Executive’s employment for “Cause” by providing a Notice of Termination
for Cause to Executive, as provided herein.

     (i) For purposes of this Agreement, the term “Cause” means any
of the following: (A) Executive’s willful and continued failure
substantially to perform the duties of his position (other than as
a result of disability, as defined in Section 72(m)(7) of the
Internal Revenue Code of 1986, as amended, or as defined under the
Company’s long-term disability plan, or as a result of termination
by Executive for Good Reason), provided that such “Cause”
shall have been found by a majority vote of the Board after at
least ten (10) days’ written notice to Executive specifying the
failure on the part of Executive and giving Executive the
opportunity to cure his actions or inactions in the event that they
are susceptible to cure within ten (10) days of written notice, an
opportunity for Executive to be heard at a meeting of the Board,
and delivery of a “Notice of Termination for Cause,” as provided
below; (B) any willful act or omission by Executive constituting
dishonesty, fraud or other malfeasance, and any act or omission by
Executive constituting immoral conduct, which in any such case is
injurious to the financial condition or business reputation of the
Company; or (C) Executive’s indictment for a felony under the laws
of the United States or any state thereof or any other jurisdiction
in which the Company conducts business. For purposes of this
definition, no act or failure to act shall be deemed “willful”
unless effected by Executive not in good faith and without a
reasonable belief that such action or failure to act was in or not
opposed to the best interests of the Company.

     (ii) For purposes of this Agreement, the phrase “Notice of
Termination for Cause”

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shall mean a written notice that indicates
the specific termination provision(s) in Section 5(c)(i) relied
upon, and sets forth in reasonable detail the facts and
circumstances which provide the basis for termination for Cause. A
termination for Cause shall be effective the date the Notice of
Termination for Cause is given to Executive. Any purported
termination for Cause which is held by an arbitrator not to have
been based on the grounds set forth in this Agreement or not to
have followed the procedures set forth in this Agreement shall be
deemed a termination by the Company without Cause.

     (d) TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may
terminate Executive’s employment without Cause at any time upon written
notice to Executive.

     (e) TERMINATION BY EXECUTIVE. Executive may terminate his
employment with or without Good Reason at any time upon written notice to
the Company; provided, however, that any termination of
employment by Executive without Good Reason, including any Permitted
Resignation, as defined in Section 6(d) of this Agreement, or nonrenewal
of the Agreement by Executive, that is effected without providing ninety
(90) days’ advance written notice to the Company shall be treated as a
termination for Cause for purposes of Section 6 of this Agreement.

     (i) For purposes of this Agreement, the term “Good Reason”
means, without Executive’s consent: (A) removal from, or failure
to be reappointed or reelected to, the Board or Executive’s
principal position (other than as a result of a promotion),
excluding for this purpose the position of Acting Chief Operating
Officer; (B) diminution in Executive’s title, position, duties or
responsibilities, or the assignment to Executive of duties that are
inconsistent, in a material respect, with the scope of duties and
responsibilities associated with Executive’s position under this
Agreement; (C) reduction in Executive’s compensation, excluding
bonuses (other than the minimum guaranteed bonus provided for under
Section 4(b) of this Agreement) and equity compensation; (D)
relocation of Executive’s principal workplace to a location which
is more than fifty (50) miles from its location on the Effective
Date; or (E) any failure by the Company to require any successor to
assume the terms of this Agreement in the absence of a successor
agreement acceptable to Executive. For purposes of clauses (A),
(B) or (C) of the preceding sentence, an isolated, insubstantial
and inadvertent action not taken in bad faith and which is remedied
by the Company promptly after receipt of written notice thereof
given by the Executive shall be excluded. No diminution of title,
position, duties or responsibilities shall be deemed to occur
solely because the Company becomes a subsidiary of another
corporation or due to a change in the reporting hierarchy incident
thereto, or due to the Company’s hiring, or promotion of another
person to the position, of Chief Operating Officer or Executive’s
ceasing to be Acting Chief Operating Officer.

     (ii) A termination of employment by Executive for Good Reason
shall be effected by giving the Company written notice (a “Notice
of Termination for Good Reason”) of the termination, setting forth
in reasonable detail the specific conduct of the Company that
constitutes Good Reason and the specific provision(s) of this
Agreement on which the Executive relies.. A termination of
employment by the Executive for Good Reason shall be effective ten
(10) business days following the date when the Notice of
Termination for Good Reason is given, unless, if applicable, the
event constituting Good Reason is remedied by the Company prior to
that date. Actions by the Company that constitute Good Reason
shall be disregarded in the calculation of termination benefits
described in Section 6.

     (iii) A termination of Executive’s employment by the Executive
without Good Reason shall be effected by giving the Company ninety
(90) days’ advance written notice of the termination.

     (f) DATE OF TERMINATION. The term “Date of Termination” means the
earliest of: (i) the date of Executive’s death; (ii) the date on which
the Company gives written notice of termination of employment to
Executive due to his having become Totally Disabled; (iii) the date on
which the termination of Executive’s employment by the Company for Cause
or without Cause or by Executive by
way of Permitted Resignation or Voluntary Termination, for Good
Reason or without Good Reason, is

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effective; or (iv) the last day before
the next subsequent anniversary of the Effective Date after a notice of
nonrenewal and termination of employment is given timely by the Company
or Executive. Upon Executive’s termination of employment for any reason,
Executive shall immediately resign from the Board and from all other
offices and positions he holds with the Company and its subsidiary and
affiliate companies.

     6. COMPENSATION FOLLOWING TERMINATION OF EMPLOYMENT. In the event that
Executive’s employment is terminated, Executive, in lieu of the compensation
and benefits described in Section 4 of this Agreement, shall be entitled to the
following compensation and benefits upon such termination:

     (a) TERMINATION BY REASON OF DEATH. In the event that Executive’s
employment is terminated by reason of Executive’s death, the Company
shall pay the following amounts and provide the following benefits to
Executive’s beneficiary(ies) or estate, as applicable, as soon as
practicable following Executive’s death:

     (i) All accrued but unpaid Base Salary, any earned but unpaid
bonuses for any prior period, all accrued but unpaid expenses
required to be reimbursed under this Agreement, and all accrued but
unused vacation time (collectively referred to as “Accrued
Compensation”).

     (ii) All vested benefits under the Company’s benefit plans,
policies and programs in which Executive participated, in
accordance with the terms of such plans, policies and programs,
except to the extent that such benefits are duplicative of benefits
provided for under Section 6 of this Agreement (collectively
referred to as “Accrued Benefits”).

     (iii) A pro-rata bonus payment for the year in which
Executive’s death occurs equal to the amount of Executive’s annual
bonus earned for the prior fiscal year multiplied by a fraction,
the numerator of which is the number of days during the year that
transpired before the Date of Termination and the denominator of
which is three hundred sixty-five (365).

     (iv) If Executive’s Date of Termination that results from his
death occurs on or after the date that is nine (9) months after the
Effective Date (the “Nine-Month Anniversary”), payment of Category
I Severance Benefits as defined in Section 6(h) of this Agreement.

     (v) If Executive’s Date of Termination that results from his
death occurs before the Nine-Month Anniversary, the Company shall
continue to provide coverage for Executive’s eligible dependents,
at their sole expense, under the Health Plan (as defined in Section
6(h) of this Agreement), for sixty (60) months after the Date of
Termination; provided that they are not eligible to
participate in a group health plan of another entity. Executive’s
eligible dependents’ right to receive continuation coverage under
COBRA shall commence after, and not run coincident with, the
continuation coverage provided under this Section 6(a)(v), and such
COBRA coverage shall be provided entirely at Executive’s eligible
dependents’ expense. Executive’s eligible dependents’ right to
receive continuation coverage under this Agreement other than COBRA
will terminate upon the earlier of the date specified herein or the
date that such dependent first becomes eligible to participate in a
group health plan of another entity.

     (b) TERMINATION BY REASON OF TOTAL DISABILITY. In the event that
Executive’s employment is terminated by reason of Executive’s Total
Disability, the Company shall pay the following amounts and provide the
following benefits to Executive:

     (i) All Accrued Compensation and Accrued Benefits.

     (ii) A pro-rata bonus payment for the year in which
Executive’s termination of employment due to Total Disability
occurs equal to the amount of Executive’s annual bonus earned for
the prior fiscal year multiplied by a fraction, the numerator of
which is the number of days during the year that transpired before
the Date of Termination and the denominator of which is three
hundred sixty-five (365). The bonus payment will be paid to
Executive as soon as
practicable following the Date of Termination.

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     (iii) If Executive’s Date of Termination that results from his
Total Disability occurs on or after the Nine-Month Anniversary,
payment of Category I Severance Benefits as defined in Section 6(h)
of this Agreement.

     (iii) If Executive’s Date of Termination that results from his
Total Disability occurs before the Nine-Month Anniversary, the
Company shall continue to provide coverage for Executive and his
eligible dependents, at Executive’s sole expense, under the Health
Plan (as defined in Section 6(h) of this Agreement), for sixty (60)
months after the Date of Termination; provided that
Executive is not eligible to participate in a group health plan of
another entity. Executive’s (and his eligible dependents’) right
to receive continuation coverage under COBRA shall commence after,
and not run coincident with, the continuation coverage provided
under this Section 6(b)(iii), and such COBRA coverage shall be
provided entirely at Executive’s expense. Executive’s (and his
eligible dependents’) right to receive continuation coverage under
this Agreement other than COBRA will terminate upon the earlier of
the date specified herein or the date that Executive (or such
eligible dependent, as applicable) first becomes eligible to
participate in a group health plan of another entity.

     The payments and benefits to be made pursuant to Section 6(b)(ii)
and (iii) shall be conditioned upon Executive’s complete adherence to the
covenants and restrictions in Section 7 of this Agreement, and his prior
execution and nonwithdrawal of a release of all claims arising in
connection with his employment or termination of employment with the
Company, in such form as is used by the Company generally at the time of
his termination (the “Release”).

     (c) TERMINATION FOR CAUSE. In the event that Executive’s employment
is terminated by the Company for Cause, including for this purpose any
Permitted Resignation, as defined in Section 6(d) of this Agreement, or
other voluntary termination of employment without Good Reason or
nonrenewal of the Agreement by Executive in any such case without
providing ninety (90) days’ advance written notice that is treated,
pursuant to Section 5(e), as a termination for Cause, the Company shall
pay to Executive all Accrued Compensation and Accrued Benefits. In
addition, in the event of any termination of employment by Executive
without Good Reason, including any Permitted Resignation, or nonrenewal
of the Agreement by Executive, that is effected in any such case without
providing ninety (90) days’ advance written notice to the Company, the
Company shall continue to provide coverage for Executive and his eligible
dependents, at Executive’s sole expense, under the Health Plan (as
defined in Section 6(h) of this Agreement), for sixty (60) months after
the Date of Termination; provided that Executive is not eligible
to participate in a group health plan of another entity. Executive’s
(and his eligible dependents’) right to receive continuation coverage
under COBRA shall commence after, and not run coincident with, the
continuation coverage provided under this Section 6(c), and such COBRA
coverage shall be provided entirely at Executive’s expense. Executive’s
(and his eligible dependents’) right to receive continuation coverage
under this Agreement other than COBRA will terminate upon the earlier of
the date specified herein or the date that Executive (or such eligible
dependent, as applicable) first becomes eligible to participate in a
group health plan of another entity.

     (d) RESIGNATION BY EXECUTIVE FOLLOWING THE START DATE OF A NEW CEO.
In the event that Executive voluntarily terminates employment, other than
for Good Reason, after the start of employment with the Company of a new
Chief Executive Officer (referred to as Executive’s “Permitted
Resignation”), and provided that Executive provides the Company at
least ninety (90) days’ advance written notice, the Company shall pay the
following amounts and provide the following benefits to Executive:

     (i) All Accrued Compensation and Accrued Benefits.

     (ii) A pro-rata bonus payment the amount of which will be the
amount of Executive’s annual bonus earned for the prior fiscal year
multiplied by a fraction, the numerator of which is the number of
days during the year of his Permitted Resignation that transpired
before the Date of Termination, and the denominator of which is
three hundred sixty-five (365). The bonus
payment will be paid to Executive as soon as practicable
following the Date of Termination.

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     (iii) Neither Category I Severance Benefits nor Category II
Severance Benefits, as each is defined in Section 6(h) of this
Agreement, shall be provided if the Date of Termination that
results from Executive’s Permitted Resignation occurs before the
earlier of (A) the Nine-Month Anniversary or (B) the date that is
six (6) months after the start of employment with the Company of a
new Chief Executive Officer (the “CEO Six-Month Anniversary”).
However, the Company shall continue to provide coverage for
Executive and his eligible dependents, at Executive’s sole expense,
under the Health Plan (as defined in Section 6(h) of this
Agreement), for sixty (60) months after the Date of Termination;
provided that Executive is not eligible to participate in a
group health plan of another entity. Executive’s (and his eligible
dependents’) right to receive continuation coverage under COBRA
shall commence after, and not run coincident with, the continuation
coverage provided under this Section 6(d)(iii), and such COBRA
coverage shall be provided entirely at Executive’s expense.
Executive’s (and his eligible dependents’) right to receive
continuation coverage under this Agreement other than COBRA will
terminate upon the earlier of the date specified herein or the date
that Executive (or such eligible dependent, as applicable) first
becomes eligible to participate in a group health plan of another
entity.

     (iv) Category I Severance Benefits, as defined in Section 6(h)
of this Agreement, shall be provided if the Date of Termination
that results from Executive’s Permitted Resignation occurs before
the Nine-Month Anniversary but on or after the CEO Six-Month
Anniversary.

     (v) Category I Severance Benefits, as defined in Section 6(h)
of this Agreement, shall be provided if the Date of Termination
that results from Executive’s Permitted Resignation occurs on or
after the Nine-Month Anniversary but before the earlier of (A) the
CEO Six-Month Anniversary or (B) the first anniversary of the
Effective Date.

     (vi) Category II Severance Benefits, as defined in Section
6(h) of this Agreement, shall be provided if the Date of
Termination that results from Executive’s Permitted Resignation
occurs on or after the first anniversary of the Effective Date,
whether or not six (6) months have elapsed since the date the new
CEO commenced employment with the Company.

     The payments and benefits to be made pursuant to Section 6(d)(ii),
(iv), (v) and (vi) shall be conditioned upon Executive’s complete
adherence to the covenants and restrictions in Section 7 of this
Agreement, and his prior execution and nonwithdrawal of a Release.

     (e) RESIGNATION BY EXECUTIVE ABSENT A NEW CEO OR GOOD REASON. In
the event that Executive voluntarily terminates employment, other than
for Good Reason, before the start of employment with the Company of a new
Chief Executive Officer (referred to as Executive’s “Voluntary
Termination”), and provided that Executive provides the Company at
least ninety (90) days’ advance written notice, the Company shall pay the
following amounts and provide the following benefits to Executive:

     (i) All Accrued Compensation and Accrued Benefits.

     (ii) A pro-rata bonus payment the amount of which will be the
amount of Executive’s annual bonus earned for the prior fiscal year
multiplied by a fraction, the numerator of which is the number of
days during the year of his termination that transpired before the
Date of Termination, and the denominator of which is three hundred
sixty-five (365). The bonus payment will be paid to Executive as
soon as practicable following the Date of Termination.

     (iii) Neither Category I Severance Benefits nor Category II
Severance Benefits, as each is defined in Section 6(h) of this
Agreement, shall be provided if the Date of Termination that
results from Executive’s Voluntary Termination occurs before the
Nine-Month Anniversary. However, the Company shall continue to
provide coverage for Executive and his eligible dependents, at
Executive’s sole expense, under the Health Plan (as defined in
Section 6(h) of this Agreement), for sixty (60) months after the
Date of Termination; provided that Executive
is not eligible to participate in a group health plan of
another entity. Executive’s (and his eligible dependents’) right
to receive continuation coverage under COBRA shall commence after,
and not

6

 

run coincident with, the continuation coverage provided
under this Section 6(e)(iii), and such COBRA coverage shall be
provided entirely at Executive’s expense. Executive’s (and his
eligible dependents’) right to receive continuation coverage under
this Agreement other than COBRA will terminate upon the earlier of
the date specified herein or the date that Executive (or such
eligible dependent, as applicable) first becomes eligible to
participate in a group health plan of another entity.

     (iv) Category I Severance Benefits, as defined in Section 6(h)
of this Agreement, shall be provided if the Date of Termination
that results from Executive’s Voluntary Termination occurs on or
after the Nine-Month Anniversary but before the first anniversary
of the Effective Date.

     (v) Category II Severance Benefits, as defined in Section 6(h)
of this Agreement, shall be provided if the Date of Termination
that results from Executive’s Voluntary Termination occurs on or
after the first anniversary of the Effective Date.

     The payments and benefits to be made pursuant to Section 6(e)(iii),
(iv) and (v) shall be conditioned upon Executive’s complete adherence to
the covenants and restrictions in Section 7 of this Agreement, and his
prior execution and nonwithdrawal of a Release.

     (f) TERMINATION BY THE COMPANY WITHOUT CAUSE OR BY EXECUTIVE WITH
GOOD REASON. In the event that Executive’s employment is terminated by
the Company for reasons other than death, Total Disability, Cause or
nonrenewal, or Executive terminates his employment for Good Reason, the
Company shall pay the following amounts and provide the following
benefits to Executive:

     (i) All Accrued Compensation and Accrued Benefits.

     (ii) A pro-rata bonus payment the amount of which will be the
amount of Executive’s annual bonus earned for the prior fiscal year
multiplied by a fraction, the numerator of which is the number of
days during the year of his termination that transpired before the
Date of Termination, and the denominator of which is three hundred
sixty-five (365). The bonus payment will be paid to Executive as
soon as practicable following the Date of Termination.

     (iii) Category II Severance Benefits, as defined in Section
6(h) of this Agreement, shall be provided; provided,
however, that, notwithstanding the provisions of Section
6(h)(ii)(B) to the contrary, vesting of Executive’s outstanding
stock options will cease upon Executive’s acceptance of employment
with a for-profit employer but the twenty-five (25)-month exercise
period applicable to vested options granted prior to the Effective
Date would continue to apply.

     The payments and benefits to be made pursuant to Section 6(f)(ii)
and (iii) shall be conditioned upon Executive’s complete adherence to the
covenants and restrictions in Section 7 of this Agreement, and his prior
execution and nonwithdrawal of a Release.

     (g) NONRENEWAL. In the event of termination of Executive’s
employment with the Company upon nonrenewal of the Agreement, the Company
shall pay the following amounts and provide the following benefits to
Executive:

     (i) All Accrued Compensation and Accrued Benefits.

     (ii) Category II Severance Benefits, as defined in Section
6(h) of this Agreement, shall be provided.

     (iii) A pro-rata bonus payment for the year in which the Date
of Termination occurs
equal to the amount of Executive’s annual bonus earned for the
prior fiscal year multiplied by a fraction, the numerator of which
is the number of days during the year that transpired before the
Date of Termination and the denominator of which is three hundred
sixty-five (365). The bonus

7

 

payment will be paid to Executive as
soon as practicable following the Date of Termination.

     The payments and benefits to be made pursuant to Section 6(g)(ii)
and (iii) shall be conditioned upon Executive’s complete adherence to the
covenants and restrictions in Section 7 of this Agreement, and his prior
execution and nonwithdrawal of a Release.

     Notwithstanding the above, the compensation and benefits set forth
in this Section 6(g) shall not be payable to Executive in the event of
any nonrenewal of the Agreement by Executive that is effected without
providing ninety (90) days’ advance written notice to the Company and
which, therefore, is treated, pursuant to Section 5(e), as a termination
for Cause.

     (h) SEVERANCE CATEGORIES. For purposes of this Agreement, the
following terms shall have the following meanings.

     (i) “Category I Severance Benefits” shall consist of:

     (A) Continuation of Executive’s Base Salary during the twelve
(12)-month period that commences on the Date of Termination (the
“12-Month Salary Continuation Period”). Such payments shall be
paid at the same time and in the same manner as Base Salary would
have been paid if Executive had remained actively employed by the
Company until the end of the 12-Month Salary Continuation Period.

     (B) Executive shall continue to vest in all outstanding stock
options granted prior to the Effective Date, in accordance with the
vesting schedules set forth in the applicable award agreements,
during the 12-Month Salary Continuation Period. Executive, or his
estate as applicable, shall have thirteen (13) months after the
Date of Termination to exercise all vested stock options granted
prior to the Effective Date, but in no event may Executive or his
estate exercise any stock option beyond its term stated in the
applicable award agreement. The provisions of this Agreement serve
to amend any provision in an applicable award agreement to the
contrary.

     (C) During the 12-Month Salary Continuation Period, the
Company shall continue to provide coverage for Executive and his
eligible dependents, at Company’s sole expense, under the Company’s
group health plan, within the meaning of Section 607 of the
Employee Retirement Income Security Act of 1974, as amended, in
which Executive and his eligible dependents were participating as
of the Date of Termination (the “Health Plan”); provided
that Executive is not eligible to participate in a group health
plan of another entity. Upon expiration of the 12-Month Salary
Continuation Period until the fifth anniversary of the Date of
Termination, the Company shall continue to provide coverage to
Executive and his eligible dependents under the Health Plan at
Executive’s sole expense; provided that Executive is not
eligible to participate in a group health plan of another entity.
Executive’s (and his eligible dependents’) right to receive
continuation coverage under COBRA shall commence after, and not run
coincident with, the continuation coverage provided under this
Section 6(h)(i)(C), and any such COBRA coverage shall be provided
entirely at Executive’s expense. Executive’s (and his eligible
dependents’) right to receive continuation coverage under this
Agreement other than COBRA will terminate upon the earlier of the
date specified herein or the date that Executive (or such eligible
dependent, as applicable) first becomes eligible to participate in
a group health plan of another entity.

     (ii) “Category II Severance Benefits” shall consist of:

     (A) Continuation of Executive’s Base Salary during the
eighteen (18)-month period that commences on the Date of
Termination (the “18-Month Salary Continuation Period”). Such
payments shall be paid at the same time and in the same manner as
Base Salary
would have been paid if Executive had remained actively
employed by the Company until the end of the 18-Month Salary
Continuation Period.

8

 

     (B) Executive shall continue to vest in all outstanding stock
options granted prior to the Effective Date, in accordance with the
vesting schedules set forth in the applicable award agreements,
during the twenty-four (24)-month period that commences on the Date
of Termination. Executive, or his estate as applicable, shall have
twenty-five (25) months after the Date of Termination to exercise
all vested stock options granted prior to the Effective Date, but
in no event may Executive or his estate exercise any stock option
beyond its term stated in the applicable award agreement. The
provisions of this Agreement serve to amend any provision in an
applicable award agreement to the contrary.

     (C) During the 18-Month Salary Continuation Period, the
Company shall continue to provide coverage for Executive and his
eligible dependents under the Health Plan at Company’s sole
expense; provided that Executive is not eligible to
participate in a group health plan of another entity. Upon
expiration of the 18-Month Salary Continuation Period until the
fifth anniversary of the Date of Termination, the Company shall
continue to provide coverage to Executive and his eligible
dependents under the Health Plan at Executive’s sole expense;
provided that Executive is not eligible to participate in a
group health plan of another entity. Executive’s (and his eligible
dependents’) right to receive continuation coverage under COBRA
shall commence after, and not run coincident with, the continuation
coverage provided under this Section 6(h)(ii)(C), and any such
COBRA coverage shall be provided entirely at Executive’s expense.
Executive’s (and his eligible dependents’) right to receive
continuation coverage under this Agreement other than COBRA will
terminate upon the earlier of the date specified herein or the date
that Executive (or such eligible dependent, as applicable) first
becomes eligible to participate in a group health plan of another
entity.

     7. RESTRICTIVE COVENANTS.

     (a) CONFIDENTIAL INFORMATION. Executive shall at all times hold in
a fiduciary capacity for the benefit of the Company all secret,
confidential or proprietary information, knowledge or data relating to
the Company, and its respective businesses, which shall have been
obtained by Executive during Executive’s employment by the Company and
which shall not be or become public knowledge (other than by acts by
Executive or representatives of Executive in violation of this Agreement)
including, but not limited to, the following: (i) gene and protein
sequences; (ii) biological data; (iii) clones and biologic materials;
(iv) laboratory, pre-clinical and clinical experiments and studies; (v)
performance characteristics of the Company’ products; (vi) marketing
plans, business plans, strategies, forecasts, budgets, projections and
costs; (vii) gene sequencing techniques and reagents; (viii)
bioinformatics; (ix) personnel information; (x) customer, vendor and
supplier lists; (xi) customer, vendor and supplier needs, transaction
histories, contacts, volumes, characteristics, agreements and prices;
(xii) promotions, operations, sales, marketing, and research and
development; (xiii) business operations, internal structures, and
financial affairs; (xiv) systems and procedures; (xv) pricing structure
of the Company’ services and products; (xvi) proposed services and
products; (xvii) contracts with other parties; and (xviii) any other
information that the Company is obligated by law, rule or regulation to
maintain as confidential (the “Confidential Information”). During
Executive’s employment with the Company and after termination of such
employment at any time or for any reason, and regardless of whether any
payments are made to Executive under this Agreement as a result of such
termination, Executive shall not, without the prior written consent of
the Company or as may otherwise be required by law or legal process,
communicate or divulge any Confidential Information to any person other
than the Company and those designated by it or use any Confidential
Information except for the benefit of the Company. Immediately upon
termination of Executive’s employment with the Company at any time or for
any reason, Executive shall return to the Company all Confidential
Information, including, but not limited to, any and all copies,
reproductions, notes or extracts of Confidential Information.

     (b) COMPETITIVE BUSINESSES. During the eighteen (18)-month period
following the Date of Termination, Executive shall be permitted, directly
or indirectly, to engage in or assist others in engaging in a business
which, at the Date of Termination, is in competition with the Company or
any of its
subsidiary or affiliate companies, whether as an owner, officer,
director, employee, consultant, partner or agent, until such time, if
any, as the organization or person engaged in such competitive business
owns a product approved by the Food and Drug Administration (“FDA”) that
is in direct competition with a

9

 

product of the Company or any of its
subsidiary or affiliate companies approved by the FDA and sold by the
Company or any of its subsidiary or affiliate companies, in which event
Executive shall terminate Executive’s relationship with such organization
or person within ten (10) business days following the date Executive
becomes aware of such competitive situation. Notwithstanding the
foregoing, in no event shall it be a violation of this Section 7(b) for
Executive to enter the employ of, or render any services to, whether as
an owner, officer, director, employee, consultant, partner or agent, any
person, firm, entity or corporation engaged in any not-for-profit
business or any academic institution.

     (c) SOLICITATION OF EMPLOYEES. During Executive’s employment with
the Company and for a period of twelve (12) months after the Date of
Termination, Executive shall not solicit, participate in or promote the
solicitation of any person who was employed by the Company or any of its
subsidiary or affiliate companies at the time of the Date of Termination
to leave the employ of the Company or any of its subsidiary or affiliate
companies, or, on behalf of himself or any other person, hire, employ or
engage any such person. Executive further agrees that, during such time,
if an employee of the Company or any of its subsidiary or affiliate
companies contacts Executive about prospective employment, Executive will
inform such employee that he cannot discuss the matter further without
informing the Company.

     (d) COMPANY’S RIGHT TO INTELLECTUAL PROPERTY. Executive shall
promptly disclose to the Company, for its sole use and benefit, any and
all inventions, ideas, discoveries, information, works of authorship,
proposals, drawings, plans, schematics, computer software or programs,
know-how, processes, formulas, designs, data, improvements or revisions
(collectively, “Inventions”), whether or not copyrightable or patentable,
which he/she may, in whole or any part, make, devise, conceive, create,
design, invent, develop, reduce to practice or discover, either solely or
jointly with another or others (whether or not Company personnel), during
his employment by the Company (whether at the request or upon the
suggestion of the Company or otherwise, and whether during or outside of
normal working hours), which relate to, or are capable of use in
connection with, the business of the Company or its subsidiary or
affiliate companies and/or those which result directly or indirectly, in
whole or in part, from use of the time, facilities, materials or
information of the Company, together with all patent applications,
letters patent, copyrights and reissues thereof that may at any time be
granted for or upon any such Inventions. Executive further agrees to
assign, grant and convey, and hereby assigns, grants and conveys, to the
Company all of the rights, titles and interests in and to any and all
such Inventions that Executive, in whole or in part, has or may acquire
in such Inventions. Executive agrees that the Company will be the sole
owner of all patents, copyrights, trademarks and other intellectual
property rights in connection therewith, and agrees to take all such
actions as may be requested by the Company with respect to any such
Inventions to confirm or evidence such assignment, transfer, conveyance
or ownership, and to assist in the Company’ maintenance, enforcement,
license, assignment, transfer, or conveyance of such rights. In
connection therewith:

     (i) Executive shall without charge, but at the expense of the
Company, promptly at all times hereafter execute and deliver such
applications, assignments, descriptions and other instruments as
may be reasonably necessary or proper in the opinion of the Company
to vest title to any such inventions, improvements, technical
information, patent applications, patents, copyrights or reissues
thereof in the Company and to enable it to obtain and maintain the
entire right and title thereto throughout the world; and

     (ii) Executive shall render to the Company at its expense
(including reimbursement to the Executive of reasonable
out-of-pocket expenses incurred by the Executive and a reasonable
payment for the Executive’s time involved in case he is not then in
its employ) all such assistance as it may require in the
prosecution of applications for said patents, copyrights or
reissues thereof, in the prosecution or defense of interferences
which may be declared involving any said applications, patents or
copyrights and in any litigation in which the Company may be
involved relating to any such patents, inventions, improvements or
technical information.

     8. INDEMNIFICATION. The Company will continue to cover Executive under
its directors’ and officers’ insurance policy following the Date of Termination
for a period of time equal to the applicable statute of limitations. The
Company shall indemnify and hold Executive harmless to the same extent it
indemnifies its other

10

 

officers and directors under its by-laws, in respect of
any liability, damage, cost or expense (including reasonable attorneys’ fees)
actually and reasonably incurred in connection with the defense of any claim,
action, suit or proceeding to which Executive is a party by reason of
Executive’s being or having been an officer or director of the Company or any
subsidiary or affiliate thereof, or Executive’s serving or having served at the
request of such other entity as a director, officer, employee or agent of
another corporation or of a partnership, joint venture, trust, business
organization, enterprise or other entity, including service with respect to
employee benefit plans. Without limiting the generality of the foregoing, the
Company shall pay the expenses (including reasonable attorneys’ fees) actually
and reasonably incurred in defending any such claim, action, suit or proceeding
in advance of its final disposition, upon receipt of Executive’s undertaking to
repay all amounts advanced unless it is ultimately determined that Executive is
entitled to be indemnified under this Section.

     9. ARBITRATION; EQUITABLE RELIEF.

     (a) ARBITRATION. Any controversy, dispute or claim of whatever
nature arising out of, or in relation to, the Company’s and Executive’s
relationship as provided in this Agreement, shall be resolved first by
prompt, informal, good faith negotiations by the parties. If a mutually
satisfactory resolution is not reached by such good faith negotiations
within forty-five (45) days, the parties agree that such controversy,
dispute or claim shall be resolved exclusively through final and binding
arbitration before a single neutral arbitrator selected jointly by the
parties. If the parties are unable to agree on a single arbitrator, each
of the Company and Executive shall select an arbitrator, and those
arbitrators will jointly select a third, who will arbitrate the dispute.
The arbitrator must be a former judge, and the arbitration shall be
conducted in accordance with the rules of JAMS/ENDISPUTE then in effect.
The arbitration shall take place in Rockville, Maryland. The Company
will pay the direct costs and expenses of the arbitration. The Company
and Executive will each separately pay its counsel fees and expenses;
provided, however, the Company shall reimburse Executive
for his reasonable costs (including without limitation, attorneys’ fees)
incurred if Executive succeeds on the merits with respect to a material
breach of this Agreement and Executive is not found to be in material
breach. The parties agree that any award rendered by the arbitrator
shall be final and binding, and that judgment upon the award may be
entered in any court having jurisdiction thereof. The provisions of this
Section 9 shall survive the expiration or termination of this Agreement
and of Executive’s employment.

     (b) EQUITABLE RELIEF. The parties further acknowledge and agree
that, due to the Company’s business, the Executive’s breach any of the
covenants set forth in Section 7 of this Agreement would cause
significant hardship to the Company and immediate, material and
irreparable injury and damage for which there is no adequate remedy at
law. Accordingly, in the event of a breach, or threatened breach, by
Executive of the provisions of Section 7 of this Agreement, the Company
shall be entitled immediately to seek, and nothing in this Section 9
shall preclude the Company from seeking, enforcement of Section 7 of this
Agreement in a court of competent jurisdiction by means of a decree of
specific performance, an injunction without the posting of a bond or the
requirement of any other guarantee, and any other form of equitable
relief, and that the Company is entitled to recover from Executive the
costs and attorneys’ fees it incurs to obtain such equitable relief
(including an injunction) or any other damages for a breach of Section 7
of this Agreement. This provision is not a waiver of any other rights,
which the Company may have under this Agreement, including the right to
recover money damages for any other claim at law or in equity.

     (c) The provisions of this Section 9 shall survive the expiration or
termination of this Agreement and of Executive’s employment.

     10. LEGAL FEES. Company agrees to reimburse Executive for all legal and
professional fees and costs incurred by the Executive in connection with the
negotiation and preparation of this Agreement, but in no event to exceed Ten
Thousand Dollars ($10,000.00).

     11. WITHHOLDING OF TAXES. The Company may withhold from any compensation
and benefits payable under this Agreement all applicable federal, state, local,
or other taxes.

     12. ASSIGNMENT. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, representatives,
successors and assigns. This Agreement shall not be assignable by

11

 

Executive
(but any payments due under this Agreement which would be payable at a time
after Executive’s death shall be paid to Executive’s designated beneficiary or,
if none, his estate). The Company shall require any successor, whether direct
or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all of the business and/or assets of the Company expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would have been required to perform it if no such
succession had taken place. As used in this Agreement, the term “Company”
shall mean both the Company as defined above and any such successor.

     13. ENTIRE AGREEMENT; NON-DUPLICATION OF BENEFITS. This Agreement,
together with the Company’s Key Executive Severance Plan (the “Severance
Plan”), shall constitute the entire understanding of the parties with respect
to the subject matter herein and shall supersede any and all existing oral or
written agreements, representations, or warranties between Executive and the
Company or any of its subsidiaries or affiliated entities relating to the terms
of Executive’s employment by the Company including, without limitation, that
certain employment agreement between the Company and Executive entered into on
October 5, 1992. In the event that Executive is entitled to benefits under the
Severance Plan and this Agreement, he shall be entitled to the better benefits
of the two, determined in the aggregate and in his discretion, and in no event
will he be entitled to benefits under both this Agreement and the Severance
Plan.

     14. AMENDMENT. This Agreement shall not be amended except by a written
agreement signed by both parties.

     15. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Maryland applicable to agreements made
and to be performed in that State, without regard to its conflict of laws
provisions.

     16. REQUIREMENT OF TIMELY PAYMENTS. If any amounts which are required, or
determined to be payable or reimbursable, to Executive under this Agreement are
not so paid promptly at the times provided herein, such amounts shall accrue
interest, at the applicable Federal short-term rate in effect under Internal
Revenue Code Section 1274(d) as of the date such amount first became due to
Executive, compounded annually, from the date such amounts were required or
determined to have been payable or reimbursable to Executive, until such
amounts and any interest accrued thereon are finally and fully paid,
provided, however, that in no event shall the amount of interest
contracted for, charged or received hereunder, exceed the maximum non-usurious
amount of interest allowed by applicable law.

     17. NOTICES. Any notice, consent, request or other communication made or
given in connection with this Agreement shall be in writing and shall be deemed
to have been duly given upon receipt when delivered by hand or by overnight
courier, or three (3) days after deposit in the U.S. mail by registered or
certified mail, return receipt requested, with proper postage affixed, to the
parties at their following respective addresses or at such other address as
each may specify by notice to the others in accordance with this Section.
Notices to the Company shall be addressed to the Secretary of Human Genome
Sciences, Inc. at 14200 Shady Grove Road, Rockville, Maryland 20850. Notices
to the Executive shall be addressed to Executive’s address as reflected on
Company’s personnel records.

     18. MISCELLANEOUS.

     (a) WAIVER. The failure of a party to insist upon strict adherence
to any term of this Agreement on any occasion shall not be considered a
waiver thereof or deprive that party of the right thereafter to insist
upon strict adherence to that term or any other term of this Agreement.

     (b) NO DUTY TO MITIGATE. The Company agrees that, if Executive’s
employment with the Company terminates, Executive is not required to seek
other employment or to attempt in any way to reduce any amounts payable
to or in respect of Executive by the Company pursuant to this Agreement.
Further, the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by Executive as
the result of employment by another employer or by retirement benefits.

     (c) TERMINATION OF AGREEMENT. This Agreement shall terminate upon
the

12

 

termination of Executive’s employment, except that terms of this
Agreement which must survive the termination of this Agreement in order
to be effectuated (including the provisions of Sections 6, 7, 8, 9, 13
and 15) shall survive until, by their terms, such provisions are no
longer operative. Upon the termination of the Executive’s employment,
Executive consents to the notification by the Company to the Executive’s
new employer of Executive’s obligations under this Agreement.

     (d) SEPARABILITY. If any portion of this Agreement shall be found
to be invalid or contrary to public policy, the same may be modified or
stricken by a court of competent jurisdiction, to the extent necessary to
allow the court to enforce such provision in a manner which is as
consistent with the original intent of the provision as possible. If any
term or provision of this Agreement is declared illegal or unenforceable
by any court of competent jurisdiction and cannot be modified to be
enforceable, such term or provision shall immediately become null and
void, leaving the remainder of this Agreement in full force and effect.

     (e) HEADINGS. Section headings are used herein for convenience of
reference only and shall not affect the meaning of any provision of this
Agreement.

     (f) RULES OF CONSTRUCTION. Whenever the context so requires, the
use of the singular shall be deemed to include the plural and vice versa.

     (g) COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an
original, and such counterparts will together constitute but one
Agreement.

(Signature page follows)

13

 

     IN WITNESS WHEREOF, this Agreement is EXECUTED and EFFECTIVE as of the day
set forth above.

	 	 	 	 	 	 	 
	CRAIG A. ROSEN, Ph.D.	 	 	 	WITNESS:
	 
	 	 	 	 	 	 
	(“Executive”)	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Craig A. Rosen, Ph.D.	 	 	 	/s/ Cynthia B. Thir
	
 	 	 	 	
 
	Craig A. Rosen, Ph.D.	 	 	 	Cynthia B. Thir
	 
	 	 	 	 	 	 
	HUMAN GENOME SCIENCES, INC.	 	 	 	ATTEST:
	(“Company”)	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Susan Bateson McKay
	 	 	 	/s/ Shelly D’Amico
	

	 	
 
	 	 	 	
 
	

	 	Susan Bateson McKay
	 	 	 	Shelly D’Amico
	 
	 	 	 	 	 	 
	Title:

	 	Senior Vice President, HR	 	 	 	 

14

 

EXHIBIT A

PERMITTED RELATIONSHIPS

     The Company agrees that, during the Employment Period and provided that
such service does not materially interfere with the performance of his duties
to the Company, Executive may serve on the Scientific Advisory Boards for the
Wistar Institute and the Institute for Human Virology, and on the editorial
boards of the following publications:

     None

15

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