Exhibit 10.1


 


AMENDMENT TO AMENDED


AND RESTATED PROMOTION AGREEMENT


 


This
Amendment to Amended and Restated Promotion Agreement (this “Amendment”) is
made as of February 16, 2009.


 


BY AND
BETWEEN:


 


Depomed, Inc., a California
corporation having its principal place of business at 1360 O’Brien Drive, Menlo
Park, CA 94025 (hereafter “Depomed”),


 


AND:


 


Watson
Pharma, Inc., a Delaware corporation having its principal place
of business at 360 Mount Kemble Avenue, Morristown, NJ 07960 (hereafter “Watson”).


 


WITNESSETH:


 


WHEREAS, Watson and Depomed
(hereafter “the Parties”) entered into an Amended and Restated Promotion
Agreement on September 18, 2007 (the “Agreement”), whereby Depomed engaged
Watson to promote and market Proquin® XR (“Product”)
in the U.S. and its territories (“Territory”);


 


WHEREAS, the Parties
now wish to further amend the Agreement pursuant to the conditions set forth herein.


 


NOW
THEREFORE, it is mutually agreed as follows:


 


1.             Section 4.1 Product
Promotion.  Subsections (h) through
(j) shall be replaced in their entirety with the following new
subsections:


 


“(h)         During the Agreement Quarter beginning
on January 1, 2009, Watson shall perform a minimum of 10,000 P2 Details
and 6,000 sample calls to Professionals on the Watson Physician List within
both the Urology Field and Ob/GYN Field, which are current prescribers of the
Product.”


 


“(i)          During each of the Agreement Quarters
beginning on April 1, 2009 and ending December 31, 2009, Watson shall
perform a minimum of 6,000 sample calls to Professionals on the Watson
Physician List.”


 


“(j)          [Intentionally omitted]”


 


2.             Section 6.1 Obligations of
Depomed.  This Section shall
be replaced in its entirety with the following:


 


“6.1         [Intentionally Omitted]”


 


3.             Section 6.3 Volume
Forecasts.  This Section shall
be replaced in its entirety with the following:


 


1

















 


“6.3         Volume Forecasts.  From and after February 1, 2009,
neither Party shall have any obligations under this Agreement in respect of the
Volume Forecast.”


 


4.             Section 6.5 Samples.  The following subsection
shall be inserted as subsection (d):


 


“(d)         The Parties hereby agree that Watson
shall not pay for any further Samples after it receives its final order of approximately
93,000 Samples, which is expected to be delivered to Watson in February 2009.
 Unless otherwise instructed by Depomed,
Watson shall endeavor to allocate its supply of Samples among the 10,000 P2
Details and 24,000 sample calls to be delivered pursuant to Section 4.1(h) and
4.1(i).  Once Watson has exhausted its
inventory of Samples, Depomed shall bear all expenses related to providing
further Samples to Watson for distribution by Watson’s Sales Representatives
throughout the remainder of the Initial Term. Watson will retain responsibility
and sole expense for distributing such Samples to its Sales Representatives, as
well as, securing the return, disposal and reconciliation from any discontinued
Sales Representatives throughout the remainder of the Initial Term.  At Depomed’s request, any Samples remaining at
the end of the Initial Term will either be returned to Depomed or disposed of by
Watson at Watson’s sole cost and expense; provided, however, that (i) any
Samples not paid for by Watson as contemplated by this Section or (ii) any
Samples paid for by Watson and in its possession as of an Early Termination
notice by Depomed pursuant to Section 8.2, shall be returned to Depomed or
disposed of by Watson at Depomed’s sole cost and expense.”


 


5.             Section 7.1 Promotion Fees.  The first sentence shall be replaced in its
entirety with the following sentence:


 


“(a) In
consideration for Watson’s performance of its obligations under this Agreement,
for each Agreement Quarter beginning with the Agreement Quarter ending on December 31,
2007, through the Agreement Quarter ending December 31, 2008, Depomed
shall pay promotion fees (the “promotion Fees”) in an amount equal to 65% of
the Field Gross Margin for such Agreement Quarter.  For any period beginning on or after January 1,
2009, Depomed shall have no obligation to (i) pay promotion fees to Watson
pursuant to Section 7.1(a), (ii) provide Watson with the report
described in Section 7.1(b), or (iii) maintain or make available
records pursuant to Section 7.2.”


 


6.             Section 8.1 Term.  This Section shall be restated and
replaced in its entirety with the following:


 


“Section 8.1           Term. The
term of this Agreement shall commence on the Initial Effective Date and shall
continue, unless terminated sooner in accordance with this Article VIII,
until December 31, 2009 (the “Initial Term”).”


 


7.             Section 8.2  Early Termination.  This Section shall be restated and
replaced in its entirety with the following:


 


“Section 8.2           Early Termination.  Depomed may terminate this Agreement upon
10 days’ written notice to Watson.”


 


8.             Section 8.7 (d) Effect
of Termination.  To the end of
this Section, insert the following:


 


“In
addition, upon the expiration or termination of this Agreement, Depomed shall
cease all use of any Watson Trademarks listed in Schedule 1.92 in the
Territory.”


 


2

















 


9.             Section 8.7 Effect of
Termination.  To the end of
this Section, insert the following new sections:


 


“(e)         Upon the expiration or termination of
this Agreement, each party agrees not to engage in any form of conduct, or make
any statements or representations related to this Agreement or the relationship
between the Parties that disparage or otherwise harm the other party’s
reputation, good will or commercial interest.”


 


“(f)          Upon the expiration or termination of
this Agreement, Watson shall provide Depomed with the Watson Physician List,
which Watson Physician List may be used solely for the purpose of promoting the
Product.”


 


“(g)         During the Initial Term, if requested
by Depomed, Watson shall make available to Depomed for consultation (in an
aggregate amount not to exceed more than 15 hours per month) representatives of
Watson responsible for the Promotion of the Product for the purpose of
responding to inquiries and requests for information related to Watson’s
Promotion of the Product under this Agreement, in order to facilitate the
orderly transition of Promotion of the Product to Depomed or a Third Party.”


 


Except
as specifically amended by this Amendment, all terms and conditions of the
Agreement remain in full force and effect, and this Amendment shall deemed to
be part a part of the Agreement.


 


This
Amendment may be further amended or modified, or any provision hereof waiver,
only by a written instrument executed by the Parties hereto.


 


This
Second Amendment may be executed in counterparts and delivered by facsimile.


 


IN
WITNESS WHEROF, the Parties hereto have caused this Amendment to duly executed by
their respective officers.


 


	
  Depomed, Inc.

  	
  Watson
  Pharma, Inc

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Carl A. Pelzel

  	
   

  	
  By:

  	
  /s/
  Edward F. Heimers, Jr.

  
	
  Name:

  	
  Carl
  A. Pelzel

  	
  Name:

  	
  Edward
  F. Heimers, Jr.

  
	
  Title:
  President and CEO

  	
  Title:

  	
  President,
  Brand Division

  
	
   

  	
   

  	
   

  
	
  Date:
  2/18/2009

  	
  Date:
  2/18/2009

  
								



 


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