Document:

Exhibit 10.3

 

Aceto corporation

 

As of
February 11, 2019

 

Re:Retention
Bonus

 

Dear
Steve:

 

On
behalf of Aceto Corporation (the “Company”), I am pleased to advise you that the Compensation Committee of the
Company’s Board of Directors (the “Committee”) has approved an amendment to the Retention Bonus, granted
to you under (and as defined in) that certain Retention Bonus Agreement, between you and the Company, dated as of May 21, 2018
(the “Agreement”). Capitalized terms used but not defined in this letter, including Exhibit A hereto
(this “Letter”), shall have the meanings given such terms in the Agreement.

 

Currently,
Section 4(a) of the Agreement provides that the remaining unpaid portion of your Retention Bonus (the “Balance”)
will be payable on the earlier of (i) the consummation of a Transaction or (ii) the Final Retention Date, in each case, subject
to the terms and conditions of the Agreement. The Balance is currently $620,100.

 

Your
Agreement is being amended by this Letter to provide that the Balance will instead be payable, subject to the terms and conditions
of the Agreement, upon the earliest of (i) the consummation of a Transaction, (ii) the Final Retention Date, or (iii) the receipt
of a Stalking Horse Bid, in each case prior to March 15, 2019. Whether a Stalking Horse Bid has been received will be determined
by Committee in its sole discretion. For avoidance of doubt, except as otherwise provided herein, upon your receipt of the Balance
as a result of receipt of a Stalking Horse Bid, no further amounts shall be due or owing to you pursuant to the Agreement.

 

Notwithstanding
the foregoing, if payment of your Balance is triggered by receipt of a Stalking Horse Bid and (i) none of the Company or any of
its subsidiaries, including, without limitation, Rising, has entered into a Stalking Horse Agreement prior to March 15, 2019, you
shall repay one-hundred percent (100%) of the Balance to the Company on March 15, 2019, (ii) your employment with the Company
terminates, for any reason other than by the Company without Cause or as result of your death or disability, prior to the earlier
of (A) the consummation of a sale or reorganization of both the Pharma Business and the ChemPlus Business, (B) the dismissal
or conversion of the Bankruptcy Case, if any, or (C) the Final Retention Date, you shall repay one-hundred percent (100%) of the
Balance to the Company as soon as possible (but no later than ten (10) days) following such termination (each of clauses (i) or
(ii), a “Sale Clawback”), or (iii) your employment terminates, for any reason, prior to the date the Balance
would have been paid absent this Letter, you hereby agree that you shall repay to the Company within thirty (30) days of your receipt
of written demand from the Company the difference between (x) the Balance, and (y) the portion of the Balance you would have been
paid had your employment not terminated, as determined by the Committee in its good faith discretion. For avoidance of doubt, (i)
in no event shall you be required to repay more than one-hundred percent (100%) of the Balance pursuant to the immediately preceding
sentence, and (ii) a transfer of your employment to (A) any affiliate of the Company, including, without limitation, Rising, or
(B) any successor to the Company or any of its affiliates, shall not be deemed a termination of your employment with the Company
for purposes of this Letter.

 

Except
as expressly modified by this Letter, the terms of the Agreement remain in full force and effect, including, without limitation,
Section 5 and Section 8 of the Agreement. Notwithstanding anything in this Letter to the contrary, in the event you are required
to repay the Balance pursuant to a Sale Clawback, the Balance shall thereafter be payable in accordance with the terms of the Agreement,
without regard to this Letter.

 

    

    
 

    

 

If the terms of this
Letter are acceptable to you, please countersign a copy of this Letter below and return it to the undersigned no later than February
14, 2019. Please contact the undersigned if you have any questions regarding this Letter.

 

[Signature Page Follows]

 

    

    
 

    

 

	 	Sincerely,
	 	 	 
	 	Aceto Corporation
	 	 	 
	 	By:  	/s/ Charles J. Alaimo
	 	 	Name: Charles J. Alaimo
	 	 	Title: SVP, Human Resources
	 	 	 
	 	ACKNOWLEDGED AND AGREED:
	 	 	 
	 	/s/ Steve Rogers
	 	Steve Rogers

  

    

    
 

    

 

Exhibit A

 

Definitions

 

“Bankruptcy Case” means
the voluntary petitions for relief contemplated to be filed by the Company and certain of its subsidiaries under Chapter 11 of
the U.S. Bankruptcy Code.

 

“ChemPlus Business”
means, collectively, the (i) Nutritional Business Sub Segment, (ii) the business segment of the Company and certain of its affiliates
historically identified as “Performance Chemicals” and consisting of the sourcing and distribution of specialty chemicals
and agricultural protection products, including the supply to various industrial segments of chemicals used in the manufacture
of plastics, surface coatings, cosmetics and personal care, textiles, fuels and lubricants and Performance Chemicals, and (iii)
the business segment of the Company and certain of its affiliates historically identified as “Pharmaceutical Ingredients”
and comprised of the Active Pharmaceutical Ingredients (APIs) and Pharmaceutical Intermediates product groups.

 

“ChemPlus Stalking Horse”
means the initial bidder with whom the Company has negotiated and entered into a ChemPlus Stalking Horse Agreement.

 

“ChemPlus Stalking Horse Agreement”
means a binding agreement for the purchase of the assets of the ChemPlus Business, which agreement will be subject to higher or
otherwise better offers under the supervision of the bankruptcy court and subject to the terms of bankruptcy court order.

 

“ChemPlus Stalking Horse Bid”
means a binding offer to become the ChemPlus Stalking Horse.

 

“Nutritional Business Sub Segment”
means the business segment of the Company and certain of its affiliates consisting of the supply of ingredients and raw materials
used in the production of food, nutritional and packaged dietary supplements, including vitamins, supplements, botanical extracts,
amino acids, minerals, iron compounds and biochemicals used in pharmaceutical and nutritional preparations.

 

“Pharma Business” means
the business segment of certain subsidiaries of the Company consisting of the development, marketing, sales and distribution of
prescription and over-the-counter pharmaceutical finished dosage form products, excluding the Nutritional Business Sub Segment.

 

“Pharma Stalking Horse”
means the initial bidder with whom Rising has negotiated and entered into a Pharma Stalking Horse Agreement.

 

“Pharma Stalking Horse Agreement”
means a binding agreement for the purchase of the assets of the Pharma Business, which agreement will be subject to higher or otherwise
better offers under the supervision of the bankruptcy court and subject to the terms of bankruptcy court order.

 

“Pharma Stalking Horse Bid”
means a binding offer to become the Pharma Stalking Horse.

 

“Rising” means Rising
Pharmaceuticals, Inc., a New Jersey corporation.

 

“Stalking Horse Agreement”
means a ChemPlus Stalking Horse Agreement or a Pharma Stalking Horse Agreement.

 

“Stalking Horse Bid”
means a ChemPlus Stalking Horse Bid or a Pharma Stalking Horse Bid.Exhibit 10.4

 

KEY EXECUTIVE INCENTIVE AGREEMENT

 

1.                 
Purpose. This Key Executive Incentive Agreement (as may be amended, restated, or otherwise modified from time
to time, this “Agreement”) is entered into as of February 11, 2019 by Aceto Corporation, a New York corporation
(the “Company”) for the purpose of setting forth the requirements for William Kennally (“Executive”)
to receive additional compensation as an incentive to maximize the value of the Company’s assets and to ensure optimum recovery
for all stakeholders. Certain capitalized terms used but not defined herein shall have the meanings given such terms on Exhibit
A hereto.

 

2.                 
Eligibility.

 

(a)              
Subject to (i) the terms and conditions of this Agreement, and (ii) Executive’s compliance with the terms and conditions
hereof, including, without limitation, Executive’s compliance with the terms and conditions of Section 6 below, Executive
shall receive a bonus (the “Bonus”) in the event of the receipt of a Stalking Horse Bid prior to March 15, 2019.
Whether a Stalking Horse Bid has been received will be determined by the Committee in its sole discretion.

 

(b)              
Payment of the Bonus shall be subject to (i) Executive’s continued employment with the Company from the date of this
Agreement through the date of payment, or (ii) termination of Executive’s employment with the Company by the Company without
Cause (as defined in the Change in Control Agreement) prior to the date of payment.

 

3.                 
Amount of Bonus. The amount of Executive’s Bonus, if any, shall be eight hundred thousand dollars ($800,000),
and such amount shall be paid, less applicable withholdings, as soon as reasonably practical following the receipt of a Stalking
Horse Bid, and in all events within ten (10) days following receipt of a Stalking Horse Bid.

 

4.                 
Deadline for Acceptance of this Offer. In order to accept this Agreement, Executive must sign and return this
Agreement to the undersigned no later than February 14, 2019.

 

5.                 
Clawback. Notwithstanding anything in this Agreement to the contrary, if (i) none of the Company or any of
its subsidiaries, including, without limitation, Rising, has entered into a Stalking Horse Agreement prior to March 15, 2019, Executive
shall repay one-hundred percent (100%) of the Balance to the Company on March 15, 2019, and (ii) Executive’s employment with
the Company terminates, for any reason other than by the Company without Cause (as defined in the Change in Control Agreement)
or as result of Executive’s death or disability, prior to the earlier of (A) the consummation of a sale or reorganization
of both the Pharma Business and the ChemPlus Business, (B) the dismissal or conversion of the Bankruptcy Case, if any, or
(C) September 13, 2019, Executive shall repay one-hundred percent (100%) of the Balance to the Company as soon as possible (but
no later than ten (10) days) following such termination. For avoidance of doubt, a transfer of Executive’s employment to
(i) any affiliate of the Company, including, without limitation, Rising, or (ii) any successor to the Company or any of its affiliates,
shall not be deemed a termination of Executive’s employment with the Company for purposes of this Agreement.

 

    

    
 

    

 

6.                 
Assistance with Transaction. Notwithstanding anything in this Agreement to the contrary, if any transaction
is proposed by the Board that could result in the sale or other disposition of all or substantially all of the equity interests
or assets of the Company (or any of its subsidiaries or affiliates), Executive shall support such transaction and take all such
action as may be reasonably requested by the Board to cause such transaction to be consummated at the time and on the terms proposed
by the Board, including, without limitation, to the extent requested: (i) reviewing and commenting on confidential offering memoranda
or similar documents; (ii) preparing projections; (iii) meeting with representatives of prospective purchasers; (iv) participating
in management meetings; (v) assisting in connection with the negotiation, documentation and consummation of the proposed transaction;
(vi) executing and delivering such agreements and documents as are customary for similar transactions; (vii) assisting with any
formal or informal inquiry, investigation, disciplinary or other proceeding initiated by any government, regulatory or law enforcement
agency in connection with the proposed transaction or any threatened or initiated litigation against the Company whether relating
to such transaction or otherwise; and (viii) any other transitional matter reasonably requested by the Company.

 

7.                 
Cooperation. Executive agrees, at the Company’s request, to reasonably cooperate, by providing truthful
information, documents and testimony, in any Company investigation, litigation, arbitration, or regulatory proceeding regarding
events that occur during Executive’s employment with the Company. Executive’s requested cooperation may include, without
limitation, making himself reasonably available to consult with the Company’s counsel, providing truthful information and
documents, and to appear to give truthful testimony. The Company will, to the extent permitted by applicable law and court rules,
reimburse Executive for reasonable out-of-pocket expenses that Executive incurs in providing any requested cooperation, so long
as Executive provides advance written notice to the Company of Executive’s request for reimbursement and provide satisfactory
documentation of the expenses. Nothing in this Section is intended to, and this Section shall not, preclude or limit Executive’s
preserved rights described in Section 20 below.

 

8.                 
Effect of Bonus on Other Benefits. Neither the entrance into this Agreement nor the payment of any amount
hereunder will affect Executive’s benefits under any benefit plan, policy, or arrangement of the Company, except to the extent
expressly provided in any such benefit plan, policy, or arrangement. Without limiting the preceding sentence, the Bonus:

 

(a)              
shall not be considered in the computation of Executive’s performance award for purposes of Section 3 of the Change
in Control Agreement;

 

(b)              
shall not be considered in the computation of Executive’s base salary and;

 

(c)              
shall not be considered in the determination of the payments, if any, that Executive may be entitled to pursuant to any
severance plan, policy, or arrangement or the Change in Control Agreement.

 

9.                 
Restrictive Covenants. Any payment or payments under this Agreement to Executive shall be conditioned upon
the Executive’s compliance with any restrictive covenant (including, without limitation, any non-competition, non-solicitation,
non-disparagement, or protection of confidential information covenant) that directly or indirectly benefits the Company (collectively,
the “Restrictive Covenants”)). If the Executive breaches any such Restrictive Covenant in any material respect, the
Executive shall automatically, without further action, notice or deed, forfeit his right to any payment hereunder, without payment
of any consideration therefor, and upon demand by the Company, the Executive shall promptly repay to the Company any amounts already
received under this Agreement.

 

    	 	2	 

    
 

    

 

10.             
Offset of Amounts Owed; Withholding. The Company shall be entitled to deduct or withhold from any Bonus payment
made to Executive any amounts Executive owes the Company or any of its affiliates, and any federal, state, local or foreign taxes
imposed with respect to Executive’s compensation or other payments from the Company or any of its affiliates.

 

11.             
No Change in Legal Employment Status. This Agreement and the Bonus are not a contract or guarantee of employment
with the Company and they are not intended to change in any way Executive’s status as an at-will Executive subject to all
applicable terms and conditions of Executive’s employment.

 

12.             
No Right to Assign. Executive may not sell or assign Executive’s right to receive payments hereunder
or pledge such payments as security for a loan or otherwise, and any such sale, assignment, or pledge shall be null and void ab
initio.

 

13.             
Successors. This Agreement is binding on the Company and any direct corporate successor to the Company or
its business, and on Executive’s estate, personal representative, guardian or any other person acting in Executive’s
interest.

 

14.             
Governing Law. This Agreement will be governed by and interpreted under New York law, without regard to the
choice of law provisions thereof. Any and all actions arising out of this Agreement shall be brought and heard in the state and
federal courts located in Nassau County, New York and the parties hereto hereby irrevocably submit to the exclusive jurisdiction
of any such courts. THE COMPANY AND THE EXECUTIVE HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY IN ANY ACTION CONCERNING
THIS AGREEMENT OR ANY AND ALL MATTERS ARISING DIRECTLY OR INDIRECTLY HEREFROM AND REPRESENT THAT THEY HAVE CONSULTED WITH COUNSEL
OF THEIR CHOICE OR HAVE CHOSEN VOLUNTARILY NOT TO DO SO SPECIFICALLY WITH RESPECT TO THIS WAIVER.

 

15.             
Unfunded and Unsecured Status. To the extent that Executive becomes entitled to receive any payments from
the Company hereunder, such right shall be unfunded and unsecured and payable out of the general assets of the Company as and when
such amounts are payable hereunder.

 

16.             
Advice of Counsel. Both parties hereto acknowledge that they have had the advice of counsel before entering
into this Agreement, have fully read the Agreement and understand the meaning and import of all the terms hereof.

 

17.             
No Rights as a Shareholder. Executive shall not be entitled to any of the rights or privileges of a shareholder
of the Company with respect to the Bonus. Without limitation of the foregoing, the Bonus shall not entitle Executive to any dividend
or voting rights or any other rights of a shareholder of the Company.

 

    	 	3	 

    
 

    

 

18.             
Compliance with Section 409A. The intent of the parties is that payments and benefits under this Agreement
comply with or are exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) and this
Agreement shall be interpreted and construed in a manner that establishes an exemption from (or compliance with) the requirements
of Section 409A. Any terms of this Agreement that are undefined or ambiguous shall be interpreted in a manner that complies with
Section 409A to the extent necessary to comply with Section 409A. Notwithstanding anything herein to the contrary, (i) if, on the
date of termination, Executive is a “specified employee” as defined in Section 409A, and the deferral of the commencement
of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to
prevent any accelerated or additional tax under Section 409A, then the Company will defer the commencement of the payment of any
such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive)
until the date that is the first business day of the seventh month following the date of termination (or the earliest date as is
permitted under Section 409A), and (ii) if any other payments of money or other benefits due to Executive hereunder could cause
the application of an accelerated or additional tax under Section 409A, such payments or other benefits shall be deferred if deferral
will make such payment or other benefits compliant under Section 409A. In the event that payments under this Agreement are deferred
pursuant to this Section in order to prevent any accelerated tax or additional tax under Section 409A, then such payments shall
be paid at the time specified under this Section without any interest thereon. Notwithstanding anything to the contrary herein,
to the extent required by Section 409A, a termination of employment shall not be deemed to have occurred for purposes of any provision
of this Agreement providing for the payment of amounts or benefits upon or following a termination of employment unless such termination
is also a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of this
Agreement, references to a “termination,” “termination of employment” or like terms shall mean separation
from service. Each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment
payments under this Agreement is to be treated as a right to a series of separate payments.

 

19.             
Severability. If any one or more of the terms, provisions, covenants and restrictions of this Agreement shall
be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated and the parties will attempt to agree upon a valid and enforceable provision which shall be a reasonable substitute
for such invalid and unenforceable provision in light of the tenor of this Agreement, and, upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

20.             
Protected Activities. Nothing in this Agreement shall be construed as a waiver by Executive of Executive’s
protected rights under federal, state or local law to, without notice to the Company: (i) communicate or file a charge with a government
regulator; (ii) participate in an investigation or proceeding conducted by a government regulator; or (iii) receive an award paid
by a government regulator for providing information.

 

    	 	4	 

    
 

    

 

21.             
Entire Agreement. Except as otherwise specifically referenced herein, this Agreement is the entire agreement
between Executive and the Company concerning the terms of the Bonus, and it supersedes any other oral or written agreement or statement
with respect to the subject matter hereof.

 

22.             
Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be
delivered personally, faxed, or sent by nationally recognized overnight courier service (with next business day delivery requested).
Any such notice or communication shall be deemed given and effective, in the case of personal delivery, upon receipt by the other
party, in the case of faxed notice, upon transmission of the fax, in the case of a courier service, upon the next business day,
after dispatch of the notice or communication. Any such notice or communication shall be addressed as follows:

 

If to the Company to:

 

Aceto Corporation

4 Tri Harbor Court

Port Washington, New York 11050

Telephone: 201.961.9000

Facsimile: 201.961.1234

Attn: Chief Legal Officer

 

With a copy to:

 

Lowenstein Sandler LLP

1251 Avenue of the Americas

New York, New York 10020

Telephone: 212.204.8688

Facsimile: 973.597.2507

Attn: Steven E. Siesser, Esq.

 

If to Executive, to
him at the offices of the Company with a copy to him at his home address, set forth in the records of the Company.

 

Any person named above
may designate another address or fax number by giving notice in accordance with this paragraph to the other persons named above.

 

23.             
Counterparts. This Agreement may be executed in any number of counterparts and each such duplicate counterpart
shall constitute an original, any one of which may be introduced in evidence or used for any other purpose without the production
of its duplicate counterpart. Moreover, notwithstanding that any of the parties did not execute the same counterpart, each counterpart
shall be deemed for all purposes to be an original, and all such counterparts shall constitute one and the same instrument, binding
on all of the parties hereto.

 

[Signature Page Follows]

 

    	 	5	 

    
 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

ACETO CORPORATION

 

	By: 	/s/ Charles J. Alaimo	 	2/14/2019
	 	Name: Charles J. Alaimo	 	Date
	 	Title: SVP, Human Resources	 	 
	 	 	 	 
	EXECUTIVE	 	 	 
	 	 	 	 
	By: 	William C. Kennally	 	2/14/19
	 	Executive Name (Print)	 	Date
	 	 	 	 
	 	/s/ William C. Kennally	 	 
	 	Signature	 	 

 

    	 	6	 

    
 

    

 

Exhibit A

 

Definitions

 

“Bankruptcy Case” means the
voluntary petitions for relief contemplated to be filed by the Company and certain of its subsidiaries under Chapter 11 of the
U.S. Bankruptcy Code.

 

“Change in Control Agreement”
means that certain Change in Control Agreement dated as of the 11th day of October, 2017, by and between the Company and Executive,
as may be amended, restated, or otherwise modified from time to time.

 

“ChemPlus Business” means,
collectively, the (i) Nutritional Business Sub Segment, (ii) the business segment of the Company and certain of its affiliates
historically identified as “Performance Chemicals” and consisting of the sourcing and distribution of specialty chemicals
and agricultural protection products, including the supply to various industrial segments of chemicals used in the manufacture
of plastics, surface coatings, cosmetics and personal care, textiles, fuels and lubricants and Performance Chemicals, and (iii)
the business segment of the Company and certain of its affiliates historically identified as “Pharmaceutical Ingredients”
and comprised of the Active Pharmaceutical Ingredients (APIs) and Pharmaceutical Intermediates product groups.

 

“ChemPlus Stalking Horse” means
the initial bidder with whom the Company has negotiated and entered into a ChemPlus Stalking Horse Agreement.

 

“ChemPlus Stalking Horse Agreement”
means a binding agreement for the purchase of the assets of the ChemPlus Business, which agreement will be subject to higher or
otherwise better offers under the supervision of the bankruptcy court and subject to the terms of bankruptcy court order.

 

“ChemPlus Stalking Horse Bid”
means a binding offer to become the ChemPlus Stalking Horse.

 

“Nutritional Business Sub Segment”
means the business segment of the Company and certain of its affiliates consisting of the supply of ingredients and raw materials
used in the production of food, nutritional and packaged dietary supplements, including vitamins, supplements, botanical extracts,
amino acids, minerals, iron compounds and biochemicals used in pharmaceutical and nutritional preparations.

 

“Pharma Business” means the
business segment of certain subsidiaries of the Company consisting of the development, marketing, sales and distribution of prescription
and over-the-counter pharmaceutical finished dosage form products, excluding the Nutritional Business Sub Segment.

 

“Pharma Stalking Horse” means
the initial bidder with whom Rising has negotiated and entered into a Pharma Stalking Horse Agreement.

 

    	 	7	 

    
 

    

 

“Pharma Stalking Horse Agreement”
means a binding agreement for the purchase of the assets of the Pharma Business, which agreement will be subject to higher or otherwise
better offers under the supervision of the bankruptcy court and subject to the terms of bankruptcy court order.

 

“Pharma Stalking Horse Bid”
means a binding offer to become the Pharma Stalking Horse.

 

“Rising” means Rising Pharmaceuticals,
Inc., a New Jersey corporation.

 

“Stalking Horse Agreement”
means a ChemPlus Stalking Horse Agreement or a Pharma Stalking Horse Agreement.

 

“Stalking Horse Bid” means
a ChemPlus Stalking Horse Bid or a Pharma Stalking Horse Bid.

 

    	 	8

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