Document:

ex10-9

 

Exhibit 10.9

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of
November 29, 2000 by and between United Therapeutics Corporation (the
“Company”) and Roger Jeffs, Ph.D. (the “Executive”).

     WHEREAS, the Company currently employs the Executive as its Vice President
of Research, Development & Medical and Executive shall continue in this
capacity until commencement of the Initial Term in accordance with Section 2
below;

     WHEREAS, the Company desires to promote the Executive, and the Executive
is willing to accept such promotion from the Company, subject to the terms and
conditions herein set forth; and

     WHEREAS, the parties desire this Agreement to supersede and replace all
previous agreements for employment entered into between the Company and
Executive.

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

     1.     Employment. Upon the other terms and conditions hereinafter stated,
the Company agrees to employ the Executive and the Executive agrees to accept
employment by the Company for the term set forth in Section 2 hereof and in the
position and with the duties and responsibilities set forth in Section 3
hereof. Executive warrants that he is under no restriction that would prevent
him from entering into this Agreement and from complying with all of its
provisions to their fullest extent.

     2.     Term. The employment of the Executive by the Company will commence
immediately upon the retirement of James W. Crow, Ph.D. from his position as
President and COO of the Company and end on the fifth anniversary of such date
(the “Initial Term”), and thereafter shall continue from year to year for
additional one-year terms (the “Additional Terms”), unless and until either
party shall give notice of such party’s intent to terminate not less than 30
days prior to the end of the then-current Initial Term or Additional Term,
which termination shall be effective at the expiration of said term, or until
sooner terminated as hereinafter set forth.

     3.     Position and Duties. Prior to commencement of the Initial Term, the
Executive shall continue to provide services as the Company’s Vice President of
Research, Development & Medical. Upon commencement of the Initial Term,
Executive shall serve as President and COO, with such duties and
responsibilities as are normally performed by the President and COO of a
biotechnology company and as otherwise assigned by the Board of Directors from
time to time that are not inconsistent with duties and responsibilities as are
normally performed by the President and COO. The Executive shall have primary
responsibility for the operations of the Company’s Research Triangle

 

 

Park, N.C. office and management of all prostacyclin drug development programs.
Executive is expected to continue the Company’s development of its UT-15 and
Beraprost compounds for PH and PVD, as well as follow-on sustained release and
pegylated molecules for PH, PVD and one new major indication to be determined
by the Company. The Executive shall at all times exert his best efforts and
loyalty on behalf of the Company and shall devote full time and attention to
such employment. The Executive agrees to abide by all employment guidelines
and policies as may be developed from time to time by the Company, including,
without limitation, the United Therapeutics Corporation Company Manual and the
United Therapeutics Corporation Securities Trades by Company Personnel Policy.

     4.     Compensation and Related Matters. Effective January 1, 2001, the
Company shall provide the following compensation and benefits to the Executive:

           (a)    The Company shall pay to the Executive an annual base salary of Two
Hundred Fifty Thousand Dollars ($250,000) (the “Base Salary”), such annual base
salary to be increased by a minimum of 10% on each anniversary of the term of
Executive’s employment hereunder. The Base Salary shall be payable
semi-monthly or in such other installments as shall be consistent with the
Company’s payroll procedures. The Company shall deduct and withhold all
necessary social security and withholding taxes and any other similar sums
required by law or authorized by the Executive with respect to payment of the
Base Salary and all other amounts and benefits payable under this Agreement.

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

           (c)    The Executive shall be entitled to receive 125,000 incentive stock
options at the NASDAQ closing price of the Company’s common stock on January 2,
2001, vesting as follows:

		
	 	        (i)     25,000 shares shall immediately
vest as of January 1, 2001;
	 
	 	        (ii)    25,000 shares on each of the next
four anniversaries of the commencement of the Initial
Term.

           (d)    All Options previously awarded Executive, whether under any prior
agreement or otherwise, shall be unaffected by this Agreement.

           (e)    The Company shall lease for Executive’s use a luxury class car of
Executive’s choosing, with a monthly lease payment not to exceed $1,000.

           (f)    The Company shall recommend to the Board of Directors that Executive
be elected to the Board of Directors to fill the next
employee-director vacancy that occurs.

 

 

     5.     Expenses. The Executive shall be reimbursed by the Company for
reasonable travel and other expenses which are incurred and accounted for in
accordance with the Company’s normal practices.

     6.     Vacation. The Executive shall be entitled to vacation at such time or
times and for such period or periods as shall be mutually agreed upon by the
Executive and the Board of Directors.

     7.     Termination of Employment.

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

           (b)    The Company may terminate the Executive’s employment hereunder as set
forth in Section 2 above, and under the following circumstances:

                 (i)    If, as a result of the Executive’s incapacity due or other disability
owing to physical or mental illness, the Executive shall have been unable to
perform all of the Executive’s material duties hereunder by reason of illness,
or physical or mental disability or other similar capacity, which inability
shall continue for more than two (2) consecutive months, the Company may
terminate the Executive’s employment hereunder.

                 (ii)    The Company may terminate the Executive’s employment hereunder for
“Cause.” For purposes of this Agreement, the Company shall have “Cause” to
terminate the Executive’s employment hereunder upon the (A) failure of the
Executive (other than for reasons described in Sections 7(a) and 7(b)(i)
hereof) to perform or observe any of the material terms or provisions of this
Agreement; (B) negligent or unsatisfactory performance of the Executive’s
duties under this Agreement and the failure of the Executive, within 10 days
after receipt of notice from the Company setting forth in reasonable detail the
nature of the Executive’s negligent or unsatisfactory performance, (i) to
provide the Company with a reasonably satisfactory explanation of the
Executive’s actions (or inaction) and (ii) to correct to the satisfaction of
the Company any reasonably identified deficiencies; (C) employment- or
profession-related misconduct or other employment- or profession-related
similar action on the part of the Executive; (D) conviction of the Executive of
a crime involving a felony, fraud, embezzlement or the like; or (E)
misappropriation of the Company funds or misuse of the Company’s assets by
Executive.

           (c)    Any termination of the Executive’s employment by the Company or by the
Executive (other than pursuant to Section 7(a) hereof) shall be communicated by
written “Notice of Termination” to the other party hereto in accordance with
Section 10(c) hereof, which shall indicate the specific termination provision
in this Agreement relied upon, if any, and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated.

           (d)    For purposes of this Agreement, the “Date of Termination” shall mean
(i) if the Executive’s employment is terminated by the Executive’s death, the
date of the Executive’s death; (ii) if the Executive’s employment is
terminated pursuant to Section

 

 

7(b)(i) hereof, thirty (30) days after the
Notice of Termination; provided, that the Executive shall not have returned to
the performance of the Executive’s duties on a full-time basis during such
thirty (30) day period; (iii) if the Executive’s employment is terminated
pursuant to Section 7(b)(ii) hereof, the date specified in the Notice of
Termination (which date, in the
case of termination of Executive’s employment solely pursuant to clause (B) of
Section 7(b)(ii) by reason of inadequate performance, shall not be sooner than
thirty (30) days from the date of the Notice of Termination); and (iv) if the
Executive’s employment is terminated for any other reason, the date on which
the Notice of Termination is given.

     8.     Compensation Upon Termination.

           (a)    If the Executive’s employment is terminated by the Executive’s death,
the Company shall pay to the Executive’s estate or as may be directed by the
legal representatives of such estate, the Executive’s full Base Salary through
the Date of Termination at the rate in effect at the time of the Executive’s
death and all other unpaid amounts, if any, to which the Executive is entitled
as of such date in connection with any fringe benefits or under any incentive
compensation plan or program of the Company pursuant to Section 4(c) hereof, at
the time such payments are due.

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

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

           (d)    If (i) the Company terminates the Executive’s employment without
Cause, or (ii) the Executive’s employment is terminated as a result of the
transfer of control of the Company by acquisition, merger, hostile takeover or
for any other reason whatsoever, or (iii) Executive’s authority and
responsibilities are materially diminished without cause relating to the
performance of Executive’s services hereunder and Executive terminates this
Agreement as a result of such unjustified diminution of authority, then should
any of the foregoing events occur, the Company shall pay to Executive a
lump-sum amount equal to the greater of either

(a)  the amount Executive would have been entitled to receive in Base Salary for
the time remaining in Executive’s then current term of employment (either
Initial Term or Additional

 

 

Term), or (b) an amount equal to two years of Base
Salary. Such payment shall be fully due and payable to Executive in a lump sum
upon Executive’s Date of Termination. Additionally, in the event of
termination contemplated in this Section 8(d), all options granted to Executive
pursuant to Section 4(c) shall immediately vest in Executive.

     9.     Intellectual Property Rights. Because of the highly specialized and
technical nature of the business of the Company and the nature and scope of
Executive’s employment, Executive agrees that any and all rights, title, and
interest, including but not limited to domestic and foreign patents,
copyrights, trademarks and trade secrets, in and to all inventions, processes,
computer programs, photographic, written or artistic works, or other forms of
intellectual property (“Intellectual Property”) which employee makes,
conceives, reduces to practice or develops, in whole or in part, during the
term of this Agreement in the furtherance of the Company’s business and in
connection with specific Company projects as defined in Paragraph 9 below
(whether or not made during the hours of employment or with the use of
Company’s materials, facilities or personnel, either solely or jointly with
others), or after termination of employment if such Intellectual Property is
based upon Confidential Information, shall be the sole and exclusive property
of the Company, and its respective successors, licensees, and assigns. In full
consideration of the compensation provided to Executive by the Company,
Executive agrees to each and all of the following:

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

           (b)    Original Work. Executive agrees that Executive will not include any
copyrighted or patented material owned by a third party in any written,
copyrightable or patentable material furnished or delivered by Executive under
this Agreement without the unconditional written consent of the copyright or
patent owner unless specific written approval of the Company for inclusions of
such copyrighted or patented material is secured in advance. Executive also
agrees that all work (or tangible expression of an idea) that

 

 

Executive creates
or contributes to the Company in the course of Executive’s employment hereunder
will be created solely by Executive, will be original to Executive, and will be
free of any third party claims or interests.

           (c)    Applications for Patent, Copyrights and Trademarks. Executive shall,
if the Company so decides at its sole discretion and expense, apply for United
States and
foreign letters patent, copyrights, and/or trademarks, either in Executive’s
name or as the Company in its sole discretion may direct. Executive hereby
grants the Company the exclusive right, and appoints the Company as Executive’s
attorney-in-fact, to execute and prosecute an application for domestic and/or
foreign patent or other statutory protection, and Executive shall execute and
deliver to the Company, without charge to the Company but at the Company’s
expense, such other documents of registration and recordation, and do such
other acts, such as give testimony in support of Executive’s inventorship, as
may be necessary in the opinion of the Company to vest in the Company or any
other party nominated by the Company, or otherwise to protect, the exclusive
rights conveyed and/or granted to the Company pursuant to this Agreement.
Executive’s duty to support the Company’s claim of rights in patents,
copyrights, or trademarks claimed by the Company, and resulting from
Executive’s service to the Company as its employee, shall continue for the life
of any such patent, copyright or trademark.

           (d)    Assignment Except as otherwise may be agreed by the parties in a
signed writing, Executive agrees to assign to the Company and its respective
successors, licensees, and assigns, all of Executive’s rights, title and
interests in and to the Intellectual Property governed by this Agreement and
all rights, title, and interests in and to United States and foreign letters
patent, copyrights, and trademarks resulting therefrom. Executive acknowledges
this provision and understands fully its implications and meaning.

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

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

           (g)    Reports. With respect to discoveries made by Executive covered by the
terms of this Agreement, Executive shall maintain notebooks and other records
adequate to describe such discovery to others conversant in the subject of the
technology and to

 

 

establish the date and circumstances of Executive’s
discovery. Executive shall notify the Company’s General Counsel of any such
discoveries and shall make copies of all documents or reports relating to such
discoveries available to the Company. Any such discovery shall be reported to
the Company’s General Counsel regardless of whether, in Executive’s opinion, a
given discovery is of value to the Company, or is protectable under patent,
copyright or the laws of any jurisdiction.

           (h)    Infringement Actions. In the event that the Company shall bring an
infringement suit against any third parties or shall be sued by any third
parties as a result of Executive’s authorship or creation, including any
addition and/or modification of the aforementioned items of Confidential
Information, Executive agrees to cooperate reasonably without charge to the
Company, but at its request and expense, in defending against or prosecuting
any such suit. This right shall be cumulative to any other rights of the
Company hereunder.

     10.     Obligation of Confidentiality and Non-Competition.

           (a)    Executive agrees that Executive has a fiduciary duty to the Company
and that Executive shall hold in confidence and shall not, except in the course
of performing Executive’s employment obligations or pursuant to written
authorization from the Company, at any time during or for three years after
termination of Executive’s relationship with the Company knowingly (a) directly
or indirectly reveal, report, publish, disclose or transfer the Confidential
Information or any part thereof to any person or entity; (b) use any of the
Confidential Information or any part thereof for any purpose other than for the
benefit of the Company; (c) assist any person or entity other than the Company
to secure any benefit from the Confidential Information or any part thereof or
(d) solicit (on Executive’s behalf or on behalf of any third party) any
employee of the Company for the purpose of providing services or products which
Executive is prohibited from providing hereunder.

           (b)    Executive agrees that all Confidential Information, as defined below,
shall belong exclusively and without any additional compensation to the
Company. For the purposes of this Agreement, “Confidential Information” shall
mean each of the following: (a) any information or material proprietary to the
Company or designated as confidential either orally or in writing by the
Company; and (b) any information not generally known by non- Company personnel;
and (c) any information which Executive should know the Company would not care
to have revealed to others or used in competition with the Company; and (d) any
information which Executive made or makes, conceived or conceives, developed or
develops or obtained or obtains knowledge or access through or as a result of
Executive’s relationship with the Company (including information received,
originated, discovered or developed in whole or in part by Executive) from the
initial date of Executive’s employment with the Company.

           (c)    Executive agrees not to accept employment from, nor render services in
any capacity for, nor have any other business relationships with, nor engage in
any business activity in which it would be useful or helpful to Executive or
others with whom he is associated for Executive to use or disclose Confidential
Information of the Company with, a person or entity engaged in a business
located anywhere in the world which directly

 

 

competes with the Company’s then
existing or planned business a period of one (1) year following Executive’s
last receipt of compensation from the Company, whether the termination of
Executive’s employment by either party was with or without Cause. A person or
entity directly competes with the Company’s then existing or planned business
if such individual or entity is engaged in, or about to become engaged in,
research on, or development, production, manufacture, marketing, merchandising,
leasing, selling, licensing, servicing or promotion of a Competing Product. As
used in this Agreement, a “Competing Product” means any product, technology,
process, system or service, in existence or under
development, of any person or organization other than the Company which is
the same as, similar to, competes with or has a usage allied to a product,
technology, process, system or service in existence or planned by the Company
as of the termination of Executive’s employment hereunder. The parties
acknowledge that the Company’s business after the date of this Agreement may
evolve into other or additional areas and activities. Executive and the
Company agree that the terms of this Section 10(c) relating to non-competition
are reasonable in scope and length and are necessary for the protection of the
Company. In the event that a court finds the scope of this provision to be
unreasonably broad or if the length of time of this provision is found to be
unreasonably long, an arbitrator or court, as applicable, shall narrow the
scope or shorten the length of time to the extent required to render the
provision reasonable and enforceable and shall enforce the provision as so
narrowed.

           (d)    While employed by the Company and for a period of one (1) year
following Executive’s last receipt of compensation from the Company, whether
the termination of Executive’s employment by either party was with or without
Cause, the Executive will not hire, induce, attempt to hire, assist in hiring,
or cause to be hired, directly or indirectly, by another person or
organization, any person who was an employee or a contractor of the Company.
In addition, for the same period, the Executive shall not identify, or furnish
any information about, any other employee of the Company to any other person or
organization for the purpose of assisting or facilitating the hiring efforts of
such other person or organization.

     11.     Miscellaneous.

           (a)    Entire Agreement. This Agreement contains the entire agreement
between the parties hereto relating to the subject matter hereof, and this
Agreement supersedes all prior understandings and agreements, whether oral or
written, relating to the employment of the Executive by the Company.

           (b)    Assignment. This Agreement shall not be assignable or otherwise
transferable by either party hereto, but any amounts owing to Executive upon
the Executive’s death shall inure to the benefit of the Executive’s heirs,
legatees, legal representatives, executor or administrator. Notwithstanding
the foregoing, this Agreement applies with the prior written consent of the
Executive, which consent shall not be unreasonably withheld. This Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
any such respective heirs, legatees, executors, administrators,
representatives, successors and assigns.

 

 

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

	 	 	 
	 
	If to the Executive:	 	
Roger Jeffs, Ph.D.

85416 Dudley

Chapel Hill, NC 27514

If to the Company:
	 
	 	 	
United Therapeutics Corporation

1110 Spring Street

Silver Spring, Maryland 20910
	 
	 	 	
Attn: Martine A. Rothblatt, CEO
	 
	 	 	
With a copy to:
	 
	 	 	
Paul A. Mahon, Esq.

United Therapeutics Corporation

1110 Spring Street

Silver Spring, Maryland 20910

           (d)    Amendment; Waiver. This Agreement shall not be amended, altered,
modified or discharged except by an instrument in writing duly executed by the
Executive and the Company. Neither the waiver by the parties hereto of a
breach of, or default under, any of the provisions of this Agreement, nor the
failure of either of the parties, on one or more occasions, to enforce any of
the provisions of this Agreement or to exercise any right or privilege
hereunder, shall thereafter be construed as a waiver of any such provisions,
rights or privileges hereunder.

           (e)    Severability. The invalidity or unenforceabilty of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect.

           (f)    Applicable Law. This Agreement and the rights and obligations of the
parties under this Agreement shall be construed, interpreted and enforced in
accordance with the laws of the State of Maryland, exclusive of the
choice-of-laws rules thereunder.

           (g)    Survival. It is the express intention and agreement of the parties
hereto that the provisions of Sections 7, 8, 9, and 10 hereof shall survive the
termination of employment of the Executive. In addition, all obligations of
the Company to make payments hereunder shall survive any termination of this
Agreement on the terms and conditions set forth.

 

 

           (h)    Execution. To facilitate execution, this Agreement may be executed in
as many counterparts as may be required; and it shall not be necessary that the
signatures of, or on behalf of, each party, or that the signatures of all
persons required to bind any party, appear on each counterpart; but it shall be
sufficient that the signature of, or on behalf of, each party, or that the
signatures of the persons required to bind any party, appear on one or more of
the counterparts. All counterparts shall collectively constitute a single
agreement. It shall not be necessary in making proof of this Agreement to
produce or account for more than a number of counterparts containing the
respective signatures of, or on behalf of, all of the parties hereto.

     IN WITNESS WHEREOF, the undersigned have duly executed this Agreement, or
have caused this Agreement to be duly executed on their behalf, as of the date
first above written.

	 	United Therapeutics Corporation

	 	 	 
	/s/ Roger Jeffs	 	
/s/ Martine Rothblatt
	
	 	

	Roger Jeffs, Ph.D.	 	
Martine A. Rothblatt, CEOex10-10

 

Exhibit 10.10

PROMISSORY NOTE

	 	 	 
	Amount:  $1,300,000.00	 	
May 8, 2002
	Interest Rate:  6.5%	 	 

Section 1.  General.

     FOR VALUE RECEIVED, Roger Jeffs and Lisa Jeffs (collectively referred to
as the “Borrowers”), jointly and severally promise to pay to the order of
United Therapeutics Corporation (“Lender”) at 1110 Spring Street, Silver
Spring, Maryland 20910, or at such other place as may be designated in writing
by Lender, on or before that date that is five years from the date the
Principal Amount is paid to the Borrowers, the principal sum of One Million
Three Hundred Thousand Dollars ($1,300,000) (the “Principal Amount”) and
accrued interest on the unpaid Principal Amount remaining from time to time
from the date the Principal Amount is paid to the Borrowers until it is paid in
full at the rate equivalent to six and one-half percent (6.5%) per annum,
accrued in arrears, such payment of the Principal Amount and accrued interest
to be repaid earlier in part or in full upon the occurrence of any of the
events set forth in Section 2 below (the “Repayment Triggers”).

     This loan is being made to the Borrowers to assist them in acquiring a new
residence at 3410 Forest Oaks Drive, Chapel Hill, NC 27514 (the “Property”).
Borrowers hereby (i) pledge the Property as security for the loan as the first
trust secured by the Property and (ii) pledge all United Therapeutics common
stock now owned or in the future acquired by the Borrowers, whether
individually or jointly, in accordance with the attached Security Agreement
(the “Owned Shares”), until the loan is paid to Lender as provided herein, and
Borrowers agree to execute all documents necessary to record Lender’s secured
interest in the Property required by North Carolina law, such recordation to be
at Borrower’s cost.

     In the event that Borrowers fail to repay the Principal Amount and accrued
interest upon the occurrence of a Repayment Trigger, Lender may, at its sole
discretion, elect to recover the Principal Amount and accrued interest using
one or any combination of the following methods: (i) garnish Roger Jeff’s wages
from United Therapeutics Corporation or the wages of the Borrowers from any
subsequent employer; (ii) withhold any bonus or payment due Roger Jeffs from
United Therapeutics Corporation; (iii) require the voluntary forfeiture by
Roger Jeffs of Roger Jeffs’ vested options to purchase the common stock of
United Therapeutics Corporation and issue stop transfer orders with respect to
United Therapeutics’ shares owned by or on behalf of Borrowers, whether owned
individually or jointly; or (iv) sell or transfer the Property and the Owned
Shares in satisfaction of all payments due it hereunder; provided, however,
that the

 

 

security interest will only apply against the Property and the Owned Shares in
an amount equivalent to the outstanding Principal Amount plus accrued interest
in accordance with this Note.

     Borrowers hereby consent to the actions and agree to cooperate with and
not to oppose any attempt by Lender to recover the Principal Amount and accrued
interest using these methods in the event Borrowers fails to repay the
Principal Amount and accrued interest when due.

     Borrowers shall have the privilege of prepaying this Note in full at any
time before maturity by paying Lender an amount equal to one hundred percent
(100%) of the outstanding Principal Amount plus payment of accrued interest.

Section 2.  Repayment Triggers.

     If any one or more of the following events shall occur, they shall
constitute a Repayment Trigger and the Principal Amount and accrued interest
thereon shall immediately become due and payable in part or in full, without
presentment, demand, notice of nonpayment, protest, notice of protest, or other
notice of dishonor, all of which are expressly waived by the Borrowers:

     (a)  The sale of the Property or the Owned Shares;

     (b)  Each sale of United Therapeutics stock by the Borrowers, whether
individually or jointly, until the Principal Amount and accrued interest on the
unpaid balance is paid in full;

     (c)  The receipt by the Borrowers, whether individually or jointly, of a
mortgage or other financing secured by the Property or the Owned Shares;

     (d)  The Borrowers shall fail to execute the documents necessary to perfect
Lender’s secured interest in the Property; or

     (e)  The Borrowers shall (i) generally not pay their debts as such debts
become due, (ii) become or otherwise declare themselves insolvent, (iii) file a
voluntary petition for bankruptcy protection, (iv) make any assignment for the
benefit of creditors, (v) have any custodian, receiver, trustee, liquidator,
administrator or person with similar powers appointed against them or their
properties, which appointment is not stayed or vacated within thirty (30) days
from the date of any such appointment, or (vi) take any action to authorize,
acquiesce in or for the purposes of effectuating any of the foregoing.

     If any payment of the Principal Amount and accrued interest is not made in
full upon the occurrence of a repayment trigger, then the entire unpaid
Principal Amount and accrued interest shall at the option of Lender become due
and payable without notice, and failure to exercise that option shall not waive
the right to exercise it in the event of a subsequent default. Borrowers, to
the extent

 

 

legally permissible: (i) upon default promise to pay all collection
costs, including a reasonable attorneys’ fees, whether incurred in connection
with collection, trial, appeal, or otherwise; and, (ii) waive presentment,
demand, protest of demand, protest, and nonpayment.

     Time is of the essence with respect to this Note and to all the payments
and the performance required under this Note.

Section 3.  Assignment/Binding Effect.

     This Note shall be binding upon the Borrowers and inure to the benefit of
the Lender, provided, that the Borrowers may not assign any rights or delegate
any duties under this Note without the Lender’s prior written consent in the
Lender’s sole discretion.

Section 4.  Headings.

     The headings used in this Note are for convenience only and are not
intended to define or limit the contents or substance of any provision of this
Note.

Section 5.  Severability.

     Each provision of this Note constitutes a separate and distinct
undertaking, covenant, or provision of this Note. In the event that any
provision of this Note shall finally be determined to be invalid or
unenforceable, such provision shall be deemed limited by construction in scope
and effect to the minimum extent necessary to render the same valid and
enforceable, and, in the event such a limiting construction is impossible, such
unlawful provision shall be deemed severed from this Note, but every other
provision of this Note shall remain in full force and effect.

Section 6.  No Waivers.

     The remedies of Lender under this Note shall be cumulative and concurrent,
and may be pursued singly, successively, or together, at the sole discretion of
Lender, and may be exercised as often as occasion therefor shall arise. No
act, omission, or commission of Lender, including, specifically, any failure to
exercise any right, remedy, or recourse, shall be effective unless set forth in
a written document executed by Lender and then only to the extent specifically
recited in such written document. A waiver or release with reference to one
event shall not be construed as continuing, as a bar to, or as a waiver or
release of, any subsequent right, remedy, or recourse as to any subsequent
event.

 

 

Section 7.  Governing Law.

     This Note shall be governed by the laws of the State of Maryland without
giving effect to the choice of law rules of the State of Maryland or any other
jurisdiction and the Borrowers consents to the jurisdiction of the courts of
the State of Maryland. The Borrowers shall pay to Lender any expense or costs,
including reasonable attorney’s fees, incurred by the Lender in connection with
any proceeding for the collection of the amounts due under this agreement.

     IN WITNESS WHEREOF, Borrowers has caused this Note to executed on the date
first above written.

	 	 	 
	ROGER JEFFS	 	
Witness:
	 
	/s/ Roger Jeffs

	 	
/s/ Fred Hadeed         
                  
         

	 
	 	 	
Printed:Fred Hadeed                 
             

	 
	 
	LISA JEFFS	 	
Witness:
	 
	 
	/s/ Lisa Jeffs

	 	
/s/ John Ferrari         
                  
         

Printed:John Ferrari

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