Document:

Exhibit 10.19

 

GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD.

 

YAO FANG INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD.

 

And

 

SHANGHAI YAOWANG E-COMMERCE CO., LTD.

 

PROXY AGREEMENT

 

September 5, 2013

 

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This  PROXY AGREEMENT (“Agreement”) is made and entered into on September 5,2013 by and among the following parties in Shanghai, the People’s Republic of China (“China”):

 

GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD., a limited liability company duly organized and existing under the laws of China with its legal address at 2/F, No.1 Gonghe Road (West), Yuexiu District, Guangzhou, China (“Principal”).

 

YAO FANG INFORMATION TECHNOLOGY (SHANGHAI) CO., LTD., a wholly foreign owned enterprise duly organized and existing under the laws of China, with its registered address at Room 805, Suite B, No.1 Building, No.977, Shangfeng Road, Tang Town, Pudong New Area, Shanghai, China (“Proxy”);

 

And

 

SHANGHAI YAOWANG E-COMMERCE CO., LTD., a limited liability company duly organized and existing under the laws of China, with its legal address at Room 717, Suite B, No.1 Building, No.977, Shangfeng Road, Pudong New Area, Shanghai, China (“Operating Company”).

 

Each as a “Party” and collectively as “Parties”.

 

WHEREAS:

 

1.                                      GUANGDONG YIHAO PHARMACEUTICAL CHAIN CO., LTD. is the shareholder of the Operating Company and owns 100% equity (“Equity”) in the registered capital of the Operating Company.

 

2.                                      The Operating Company and the Proxy entered into an Exclusive Support Services Agreement (“Exclusive Support Services Agreement”) on September 5, 2013;

 

3.                                      As one of the pre-conditions for the Proxy to provide the services under the Exclusive Support Services Agreement, the Principal and the Proxy shall enter into a Proxy Agreement, whereby the Proxy will be authorized to exercise the voting right and the management right of the shareholder in the Operating Company for and on behalf of the Principal.

 

NOW, THEREFORE, the Parties hereby agree that:

 

1. DELEGATION OF SHAREHOLDERS’ VOTING RIGHT AND OTHER RIGHTS

 

1.1                                Subject to the terms and conditions of this Agreement, the Principal hereby irrevocably appoints and authorizes the Proxy to exercise the voting right and management right, etc. of shareholder in the Operating Company for and on behalf of the Principal. The power and right of the Proxy under the said authorization include but not limited to:

 

(1) To attend the shareholder’s meetings of the Operating Company for and on behalf of the Principal;

 

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(2) To exercise the voting right as the shareholder of the Operating Company for and on behalf of the Principal;

 

(3) To exercise the management right of the Operating Company for and on behalf of the Principal;

 

(4) To propose the convening of a special shareholder’s meeting;

 

(5) To sign the documents submitted to the government department for registration or approval, if necessary, for and on behalf of the Principal;

 

(6) To exercise all other rights of the shareholder under the laws and the articles of association of the Operating Company for and on behalf of the Principal.

 

1.2                                In order that the Proxy can effectively exercise and carry out the power and right granted to the Proxy under Article 1.1, the Principal hereby undertakes and agrees that, if any law, regulation or government authority requires the Principal to issue a special Letter of Proxy or similar document or go through the relevant formalities (such as notarization of the Letter of Proxy) in respect of certain specific matter authorized hereunder, the Principal shall immediately issue the Letter of Proxy according to such requirement.

 

1.3                                The Principal hereby undertakes and confirms that, upon written request of the Proxy, the Principal shall appoint the nominees of the Proxy to act as the legal representative or director or any other officer of the Operating Company.

 

1.4                                The Principal hereby agrees and confirms that the Proxy may sub-delegate its officers to exercise the power and right granted under Article 1.1 above by giving a written notice to the Principal; and that upon receipt of the aforesaid written notice and when necessary, the Principal shall issue a Letter of Proxy to such officers designated by the Proxy and grant the same power and right to such officers according to the requirement indicated in the written notice issued by the Proxy. However, the Proxy may revoke the authorization of power and right to such officers by giving a written notice to the Principal. Upon receipt of such a written notice from the Proxy, the Principal shall immediately revoke the authorization to such officers according to the requirement indicated by the Proxy in the written notice.

 

1.5                                The Proxy shall perform its fiduciary duties in accordance with the laws with due care and diligence within the scope of authorization specified herein. The Principal hereby accepts and is liable for any legal consequences arising from the Proxy’s exercise of the aforementioned rights.

 

1.6                                The Principal hereby confirms that the Proxy is not required to consult with the Principal in advance when exercising the aforementioned

 

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rights. However, upon making a resolution or a proposal for the convening of special shareholder’s meeting, the Proxy shall promptly notify the Principal.

 

2. RIGHT OF INFORMATION

 

For the purpose of exercising the rights hereunder, the Proxy shall be informed of the operations, business, customers, finances, employees and other relevant information of the Operating Company, and may access to the relevant information of the Operating Company. The Operating Company shall fully cooperate with it.

 

3. EXERCISE OF RIGHTS

 

3.1                                The Principal will provide full assistance for the Proxy in exercising its rights hereunder, including timely signing the resolutions of shareholder’s meeting made by the Proxy regarding the Operating Company or any other relevant legal documents, if necessary (for example, to meet the requirements of government authorities for approval, registration and filing of the required documents).

 

3.2                                If, at any time during the term of this Agreement, the granting or exercise of any right hereunder is unenforceable for any reason (other than default of the Principal or the Operating Company), the Parties shall immediately seek an alternative that is closest to the unenforceable provision, and, if necessary, sign a supplementary agreement to amend or modify the terms of this Agreement to ensure that the purpose of this Agreement can be fulfilled.

 

4. RELEASE AND INDEMNITY

 

4.1                                The Parties acknowledge that the Proxy shall not be required to be liable to any other person or any third party or pay any financial or other indemnity in relation to its exercise of the rights hereunder or appointing others to exercise its rights hereunder.

 

4.2                                The Principal and the Operating Company hereby agree to indemnify the Proxy against and hold it harmless from all losses suffered or would be suffered by the Proxy arising from its exercise of the rights hereunder, including but not limited to any action, suit, arbitration or claim of any third party, or any administrative investigation or penalty from any government authority, other than the losses resulting from willful misconduct or gross negligence of the Proxy.

 

5. REPRESENTATIONS AND WARRANTIES

 

The Principal hereby represents and warrants to the Proxy that:

 

(a)                                 The Principal has all powers and capacities to execute this Agreement and perform its obligations and duties hereunder;

 

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(b)                                 All obligations and duties of the Principal hereunder are lawful, valid, binding and enforceable according to the terms and conditions of this Agreement;

 

(c)                                  Take and carry out all actions, conditions and matters (including all necessary consents, approvals and authorizations, if so required by the laws) necessary to:

 

(i)                                     Cause the Principal to duly execute this Agreement, exercise its rights hereunder and perform and comply with its obligations and duties hereunder;

 

(ii)                                  Ensure the obligations and duties of the Principal hereunder are lawful, valid and binding; and

 

(iii)                               Cause this Agreement to become the evidence admissible under the applicable laws.

 

(d)                                 Execution of this Agreement, exercise of its rights hereunder, performance and compliance with its obligations and duties hereunder by the Principal will not violate or conflict with, or exceed any power or limitation granted or imposed by:

 

(i)                                     Any law, regulation, rule or decree, or any judgment, order or award, or any consent, approval or authorization with must be complied with by the Principal; or

 

(ii)                                  Any provision of the articles of association or any other applicable document or constitutional document of the Principal; or

 

(iii)                               The provisions of any agreement or document to which the Principal is a party or by which the Principal or any of its assets is bound;

 

(e)                                  All approvals and authorizations to be obtained by the Principal from any government or any other authority (is so required by the laws) or from the Proxy necessary for execution, performance and perfection of this Agreement have been duly obtained and they are still in full effect and force.

 

6. WAIVER AND SEVERABILITY

 

Failure or delay to exercise any right, power or remedy hereunder by the Proxy will not affect such right, power or remedy, or constitute a waiver of such right, power or remedy; and any single or partial exercise of such right, power or remedy will not preclude the further exercise of such right, power or remedy, or exercise of any other right, power or remedy. If any provision of this Agreement at any time becomes unlawful, invalid or unenforceable at any aspect under any law of any jurisdiction, the lawfulness, validity and enforceability of such provision under the laws of any other jurisdiction and

 

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the lawfulness, validity and enforceability of any other provision of this Agreement will not be affected or prejudiced.

 

7. TERM

 

The term of the power and right granted to the Proxy hereunder shall be same as the term of the Exclusive Support Services Agreement.

 

8. NOTICE

 

All notices in relation to this Agreement shall be sent to the following address by personal delivery, registered mail or fax, unless a written notice has been given to change the following address. If sent by registered mail, it shall be deemed as duly served on the date indicated in the return receipt of the registered mail; if by personal delivery, on the date of delivery; if by fax, on the date indicated in the transmission confirmation of the fax, provided that the original copy of the notice is sent to the following address by personal delivery or registered mail immediately after the fax is transmitted.

 

To the Principal:

 

Address: No.10 Building, No.114, Lane 572, Bibo Road, Pudong New Area, Shanghai

Zip Code: 201203

Attention: Hua CHEN

Tel.: 021-58381172

Fax: 021-58381091

 

To the Proxy:

 

Address: No.10 Building, No.114, Lane 572, Bibo Road, Pudong New Area, Shanghai

Zip Code: 201203

Attention: Hua CHEN

Tel.: 021-58381172

Fax: 021-58381091

 

9. LIABILITIES FOR BREACH OF CONTRACT

 

The Parties agree and confirm that if any Party (“Breaching Party”) materially violates any covenant made herein or materially fails to perform any obligation hereunder, it shall constitute a breach hereunder, and any of other Parties (“Non-Breaching Party”) may request the Breaching Party to make correction or remedy within a reasonable period. If the Breaching Party fails to

 

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make correction or remedy within the reasonable period or 15 days upon receipt of the written notice from the Non-Breaching Party requesting the remedy, the Non-Breaching Party may at its sole discretion (1) terminate this Agreement and demand the Breaching Party to fully indemnify the Non-Breaching Party against all damages; or (2) enforce the obligations of the Breaching Party hereunder and demand the Breaching Party to fully indemnify the Non-Breaching Party against all damages.

 

10. GOVERNING LAW AND DISPUTE SETTLEMENT

 

10.1                        The validity, construction, performance as well as dispute settlement of or in connection with this Agreement shall be governed by the applicable laws of the People’s Republic of China.

 

10.2                        Any dispute arising from the performance of this Agreement or in connection with this Agreement shall be settled by the Parties through friendly negotiation. If no settlement can be reached through negotiation within 30 days, any Party may submit the dispute to Shanghai International Economic and Trade Arbitration Commission for arbitration in accordance with its then effective arbitration rules. For the avoidance of doubt, the Proxy may appoint an arbitrator, the Principal and the Operating Company may jointly appoint an arbitrator, and the Chairman of the Arbitration Commission may appoint the third arbitrator. The arbitration tribunal shall be composed of these three arbitrators. All arbitration proceeding shall be conducted in Chinese language. The arbitral award shall be final and binding upon the Parties.

 

10.3                        During the settlement of a dispute, each Party shall continue to perform the provisions hereof, except for those involved in the dispute.

 

ARTICLE 11 MISCELLANEOUS

 

11.1                        The rights and obligations of the Parties under this Agreement shall inure to the benefits of the respective successors of the Parties, as if they are a party to this Agreement.

 

11.2                        No amendment or supplement to this Agreement shall be effective without the prior written request or consent of the Proxy (upon the prior written request from the Proxy, other Parties shall agree and cooperate with the amendment or supplement). Any amendment or supplement with the prior written request or consent of the Proxy shall be signed by the Parties in writing.

 

11.3                        This Agreement shall become effective when it is duly signed or sealed by the Parties. This Agreement shall be made and executed in four originals and written in Chinese, one for each Party and each being of equal legal effect. The Parties may make and execute several counterparts of this Agreement as needed.

 

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[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK; THE SIGNATURE PAGE IS ATTACHED HEREINBELOW]

 

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IN WITNESS WHEREOF, the Parties have executed or have caused their respective duly authorized representatives to execute this Proxy Agreement on the date indicated first above.

 

	
YAO FANG INFORMATION TECHNOLOGY (SHANGHAI)   CO., LTD.
    
	
 
    	
 
    
	
Signature:
    	
/s/ Hua CHEN
    	
 
    
	
Name: Hua CHEN
    	
 
    
	
Title: Legal Representative
    	
 
    
	
Seal: /s/ Company seal
    	
 
    
	
 
    	
 
    
	
GUANGDONG YIHAO PHARMACEUTICAL CHAIN   CO., LTD.     
    	
 
    
	
 
    	
 
    
	
Signature:
    	
/s/ Hua CHEN
    	
 
    
	
Name: Hua CHEN
    	
 
    
	
Title: Legal Representative
    	
 
    
	
Seal: /s/ Seal of Guangdong Yihao   Pharmaceutical Chain Co., Ltd.
    	
 
    
	
 
    	
 
    
	
SHANGHAI YAOWANG E-COMMERCE CO., LTD.
    	
 
    
	
 
    	
 
    
	
Signature: 
    	
/s/ Hua CHEN
    	
 
    
	
Name: Hua CHEN
    	
 
    
	
Title: Legal Representative
    	
 
    
	
Seal: /s/ Seal of Shanghai Yaowang E-Commerce   Co., Ltd.
    	
 
    

 

9Exhibit 4.1

 

SECOND SUPPLEMENTAL INDENTURE

 

THIS SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), entered into as of August 14, 2018, between Assertio Therapeutics, Inc., a Delaware corporation (the “Successor Company”), and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). Capitalized terms used herein and not otherwise defined herein are used as defined in the Indenture referred to below.

 

W I T N E S S E T H

 

WHEREAS, Depomed, Inc., a California corporation (the “Company”) is the issuer under that certain indenture dated as of September 9, 2014 (the “Base Indenture”), as supplemented by the First Supplemental Indenture dated as of September 9, 2014  (the “Supplemental Indenture”) (the Base Indenture as so supplemented by the Supplemental Indenture shall hereinafter collectively be referred to as, the “Indenture”) among the Company and the Trustee, providing for the issuance by the Predecessor Corporation of its 2.50% Convertible Senior Notes due 2021 (the “Notes”);

 

WHEREAS, the Company is reincorporating in Delaware and changing its name;

 

WHEREAS, contemporaneously with the execution and delivery of this Supplemental Indenture, the reincorporation and name change is being achieved mechanically by a merger of the Company into the Successor Company, a wholly-owned subsidiary of the Company (the “Merger”);

 

WHEREAS, as a result of the Merger, the existing holders of the common stock of the Company own all of the outstanding shares of the Successor Company, and there is no change in the number of shares owned by or in the percentage ownership of any shareholder as a result of the reincorporation and no adjustment of the Conversion Rate is required to be made pursuant to Section 11.04 of the Supplemental Indenture;

 

WHEREAS, other than the change in corporate domicile to Delaware, the reincorporation itself does not resulted in any change in the business, physical location, management, assets, liabilities or capitalization of the Company;

 

WHEREAS, the Company has sought to maintain intact the existing material rights of shareholders in the California corporation in forming the Delaware corporation;

 

WHEREAS, the Company may enter into a merger in accordance with Sections 10.01 and 10.02  of the Indenture;

 

WHEREAS, Section 9.01(b) and (f) and Article X of the Indenture provide that the Company, when authorized by the resolutions of the Board of Directors and the Trustee, may enter into a supplemental indenture to provide for the assumption by a Successor Company of the obligations of the Company under the Indenture without the consent of the Holders of the Notes;

 

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WHEREAS, the Board of Directors of the Company has authorized the merger of the Company into the Successor Company, the reincorporation of the Company in Delaware, the entry into this Supplemental Indenture and the assumption by the Successor Company of the obligations of the Company under the Indenture;

 

WHEREAS, the Successor Company shall, after execution and delivery of this Supplemental Indenture by the parties hereto, assume all the obligations of an issuer under the Indenture and the Notes on the terms and conditions set forth herein;

 

WHEREAS, pursuant to Section 9.01(b) and (f) of the Indenture, subject to Article X of the Indenture, the Company and the Trustee are authorized to execute and deliver this Supplemental Indenture without the consent of Holders of the Notes; and

 

WHEREAS, all things necessary to make this Supplemental Indenture a valid indenture and agreement according to its terms have been done.

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Successor Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

 

1.                                             AMENDMENT. This Supplemental Indenture is an amendment supplemental to the Indenture, and the Indenture and this Supplemental Indenture will henceforth be read together.

 

2.                                             AGREEMENT.  Successor Company hereby agrees to become party to the Indenture as issuer and hereby expressly assumes all of the obligations and agreements of the Company under the Indenture and the Notes, including, without limitation due and punctual payment of the principal of and accrued and unpaid interest on all of the Notes, the due and punctual delivery or payment, as the case may be, of any consideration due upon conversion of the Notes and the due and punctual performance of all of the covenants and conditions of the Indenture to be performed by the Company effective upon the execution and delivery of this Supplemental Indenture, which is occurring contemporaneously with the Merger.

 

3.                      NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

4.                      COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be deemed an original, but all of them together represent the same agreement. Delivery of an executed counterpart of a signature page to this Supplemental Indenture by facsimile, email or other electronic means shall be effective as delivery of a manually executed counterpart of this Supplemental Indenture.

 

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5.                      EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

6.                      THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Successor Company.

 

7.                     BENEFITS ACKNOWLEDGED. Successor Company acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that its obligation to become an issuer of the Notes pursuant to this Supplemental Indenture are knowingly made in contemplation of such benefits.

 

8.                     SUCCESSORS. All agreements of the Successor Company in this Supplemental Indenture shall bind its successors, except as otherwise provided in the Indenture. All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

 

9.                     WAIVER OF JURY TRIAL. EACH OF THE SUCCESSOR COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE SUPPLEMENTAL INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

10.              RATIFICATION OF THE INDENTURE. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof, including without limitation Section 7.06 thereof, shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

 

11.              NOTICES. All notices and other communications to the Successor Company shall be given as provided in the Indenture at the address set forth below.

 

Assertio Therapeutics, Inc.

100 S. Saunders Road, Suite 300

Lake Forest, IL 60045

Attention: General Counsel

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

 

	
 
    	
 
    	
ASSERTIO   THERAPEUTICS, INC., as Successor Company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Phillip B. Donenberg
    
	
 
    	
 
    	
 
    	
Phillip   B. Donenberg
    
	
 
    	
 
    	
 
    	
Senior Vice President and   Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE   BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Lawrence M. Kusch
    
	
 
    	
 
    	
Name:
    	
Lawrence M. Kusch
    
	
 
    	
 
    	
Title:
    	
Vice President

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