Document:

Exhibit 10.4

 

May 5, 2015

 

BY HAND

 

Scott B. Townsend

 

Re:                             Notice of Termination and Transition Service Agreement

 

Dear Scott:

 

This letter confirms the ending of your employment with AMAG Pharmaceuticals, Inc. (the “Company”) and sets forth the terms of a mutually agreeable transition plan.

 

As you know, you and the Company entered into the Amended and Restated Employment Agreement dated February 7, 2014 (“Employment Agreement”).  To the extent that a term is not defined herein, the capitalized terms shall have the same meaning as in the Employment Agreement.

 

Pursuant to Section 4(d) of the Employment Agreement, the Company may elect to terminate your employment other than for Cause after a thirty (30) day notice period.  This letter serves as the written notice contemplated by the Employment Agreement.  Provided, and notwithstanding the foregoing, in the event you enter into this Notice of Termination and Transition Service Agreement (the “Transition Service Agreement”) and the Release Agreement (the “Release”) appended hereto (collectively with the Follow on Release defined below, the “Termination Agreements”), you and the Company have agreed that the thirty (30) day notice period will be extended until January 16, 2016 on the terms set forth herein unless, prior to that date, (i) you resign, (ii) your employment ends due to your death or Disability, or (iii) the Company terminates your employment with Cause.  For purposes of the Termination Agreements, the actual last date of your employment, whether it is January 16, 2016 or an earlier date, shall be referred to as the “Date of Termination” and the Term shall end on the Date of Termination.

 

The time period between May 5, 2015 and the Date of Termination shall be considered the “Transition Period”.  During the Transition Period the following terms shall apply to your employment in lieu of any terms under the Employment Agreement or otherwise:

 

(a)         Phase I of the Transition Period:  During the period between May 5, 2015 and May 30, 2015, you will continue to hold the full-time position of Senior Vice President of Legal Affairs and General Counsel of the Company and the Secretary of the Company and shall perform the duties and responsibilities associated with that position as well as assisting with transitional matters to the extent requested by the Company’s Chief Executive Officer, President and other members of the Company’s executive management team.

 

(b)         Phase Two of the Transition Period.  During the period between May 31, 2015 and the Date of Termination, you will no longer hold the position of Senior Vice President of Legal Affairs and General Counsel or Secretary of the Company but, instead, you will serve in a part-time Senior Advisor role.  As Senior Advisor, you will perform duties,

 

 

responsibilities and projects as requested by the Company’s Chief Executive Officer, President and other members of the Company’s executive management team.  You shall provide services on a reduced schedule equal to a percentage of that of a full time exempt employee (the “Level of Services”).  The Level of Services shall commence at 50% and may be reduced by the Company in its discretion upon advance written notice to you effective upon first day of the next full calendar month, provided the Level of Services shall not be reduced to a percentage lower than 20%.

 

(c)          Salary and Benefits During Transition Period.  During (i) Phase One of the Transition Period, you shall continue to be paid at the rate of 100% of your Base Salary, $355,600 per year, (“Full Base Salary”); and (ii) Phase Two of the Transition Period, you shall be paid a percentage of your Base Salary that corresponds to the Level of Services. You will continue to participate in the Company’s employee benefits to the extent that you remain eligible under the Company’s plans based on your Level of Services, provided it is understood and agreed that you will continue to accrue vacation during the Transition Period but the regular accrual rate of four (4) weeks per year will be prorated on based on the Level of Services. Further, to the extent you are unable to perform the hours required based on the applicable Level of Services due to illness or injury, you shall be permitted to use your previously accrued vacation and sick time. The Company reserves the right to request medical documentation associated with use of such paid time off consistent with the Company’s policies and practices.

 

(d)         Indemnification; Insurance.  During the Transition Period, the Indemnification Agreement by and between the Company and you shall remain in effect and you shall be entitled to indemnification and to the extent applicable pursuant to the Charter and Bylaws of the Company, the Company’s employed lawyer insurance policies and the Company’s employment practices liability insurance.

 

(e)          Equity.  In lieu of the accelerated vesting following the Date of Termination contemplated by your Employment Agreement, and notwithstanding anything in the Employment Agreement or any equity award agreement to the contrary, you and the Company agree that all unvested time-based stock options and/or restricted stock units and any other unvested time-based equity awards that you hold in which you would have vested if you had been employed for an additional twelve (12) months following May 30, 2015 shall become vested on the later of (i) June 1, 2015 or (ii) the Effective Release Date, as defined in the Release (the “Accelerated Vesting”) and all other outstanding unvested time-based equity awards not vested by the Accelerated Vesting shall be forfeited on the Effective Release Date.  You will continue to have a Business Relationship through the Date of Termination for purposes of vesting with respect to your performance-based equity grants, and any such performance-based equity grants that remain unvested as of the Date of Termination shall be forfeited at such time.

 

(f)           Expenses.   During the Transition Period you will remain eligible for reasonable and documented business expenses in accordance with the Company’s expense reimbursement policy.  You shall not continue to be reimbursed for bar dues or

 

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continuing legal education and Section 3(f) (1) —(4) shall not longer be in effect after May 31, 2015.

 

Pursuant to Section 5(b) of the Employment Agreement you are entitled to certain severance pay and benefits (“Severance Benefits”) after the termination of your employment other than for Cause, provided you (i) comply fully with all of your obligations under all agreements between the Company and you, and (ii) execute and deliver (A) the Release, and (B) an affirmation of the general release of claims in the Release with respect to the period between the date you signed the Release and the Date of Termination (the “Follow on Release”).  Accordingly, if (i) you enter into and comply with the continuing obligations under the Termination Agreements, including without limitation the Nonsolicitation Covenant, Non-Competition, and Injunctive Relief provisions set forth in Section 6 of the Employment Agreement and the Non-Disclosure, Non-Competition, Non-Solicitation, and Invention Assignment Agreement you and the Company entered into effective as of February 27, 2014 (collectively the “Restrictive Covenants”), all of which continue to be in full force and effect, (ii) you are not terminated for Cause; and (iii) the Date of Termination occurs on January 16, 2016 or on an earlier date due to your resignation or your employment ends due to your death or Disability, the Company will provide you with Severance Benefits in the form of twelve (12) months of severance pay based on your Full Base Salary.  The foregoing severance pay shall be paid in equal installments over the twelve (12) month severance period in accordance with the Company’s usual payroll schedule, commencing on the Company’s next regular payroll date following the later of: (i) the Date of Termination; and (ii) the Effective Release Date.

 

Although not contemplated in the Employment Agreement, as an additional Severance Benefit, if you satisfy each of the Severance Conditions (as defined in the Release), the Company will pay a portion of your COBRA premiums in an amount equal to what it would have paid towards health insurance premiums for an active employee with similar coverage commencing of the earlier of:  (i) the Date of Termination, or (ii) the date you become eligible for COBRA based on the Level of Services (in either case the “COBRA Commencement Date”) and continuing until the earlier of (A) twelve (12) months from COBRA Commencement Date; and (B) the date you become reemployed and eligible for alternative health insurance. The Company shall provide you with the right to continue group medical and dental insurance coverage after the COBRA Commencement Date under the law known as “COBRA”.  (The terms for that opportunity will be set forth in a separate written notice.) Your eligibility to participate in any other employee benefit plans and programs of the Company will cease in accordance with the applicable benefit plan or program terms and practices.

 

For the avoidance of doubt, consistent with Section 5(a) of the Employment Agreement, regardless of whether you sign the Termination Agreements and/or receive Severance Benefits, the Company shall pay you for the following items that were earned and accrued but unpaid as of the Date of Termination: (i) your Base Salary (based on the Level of Services); (ii) a cash payment for all accrued, unused vacation calculated at your Full Base Salary rate; and (iii) reimbursement for any unpaid business expenses.  For the avoidance of doubt, you are not entitled to any bonus compensation for 2015 or any other periods.

 

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Also regardless of whether you enter to the Termination Agreements and/or receive Severance Benefits, you are obligated to comply with the continuing obligations set forth in the Employment Agreement, including the Restrictive Covenants.

 

You acknowledge and agree that (i) this Transition Service Agreement modifies the Employment Agreement (ii) Sections 1-5 of the Employment Agreement are fully supereceded by this Transition Service Agreement, provided the definitions therein shall remain in effect; (ii) the changes described herein do not trigger Good Reason rights under the Employment Agreement or otherwise.

 

Please let me know if you have any questions.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
/s/ Elizabeth S.   Bolgiano
    	
 
    
	
 
    	
 
    
	
Elizabeth S. Bolgiano
    	
 
    
	
Senior Vice President,   Human Resources
    	
 
    
	
 
    	
 
    
	
Acknowledged and   Agreed:
    	
 
    
	
 
    	
 
    
	
/s/ Scott B. Townsend
    	
 
    
	
Scott B. Townsend
    	
 
    

 

4Exhibit 4.33

 

Equity Transfer Agreement

 

This Equity Transfer Agreement (hereinafter referred to as “this Agreement”) is executed as of February 10th 2015 by and between the following parties in Beijing, China:

 

Hunan Fengxun Digital Technology Co., Ltd. (hereinafter referred to as the “Transferor”)

 

Domicile: Room 206 Headquarter Building, Changsha Zhongdian Software Park, No.39 Jianshan Road, Changsha High-tech Development Zone

 

iKang Guobin Health Examination Management Group Co., Ltd. (hereinafter referred to as the “Transferee”)

 

Domicile: 6F-603, 4F-24F, Jianguo Road A-92, Chaoyang District, Beijing City

 

The Transferor and the Transferee are referred to individually as a “Party” and together as the “Parties”.

 

Whereas:

 

1.                  Beijing Tianzhikangjian Investment Management Co., Ltd. (hereinafter referred to as the “Target Company”) is a limited liability company duly formed and validly existing under the laws of China. As of the date of this Agreement, the Transferee legally holds 100% of equity of the Target Company (including the additional capital contribution made by the Transferor to the Target Company in the amount of 95,875,000 yuan) (hereinafter referred to as the “Target Equity”), and intends to transfer the Target Equity to the Transferee;

 

2.                  The Parties hereby agree that the Transferor transfers, and the transferee agrees to receive, the Target Equity held by the Transferor (hereinafter referred to as “This Equity Transfer”).

 

Therefore, in accordance with the laws of China, the Parties agree as follows through friendly consultation and based on the principals of equality and mutual benefit.

 

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Article I Definition

 

Except as otherwise expressly stipulated herein, the following terms herein shall have the following respective meanings:

 

1.1           “Execution Date” means the date on which this Agreement is duly executed by the Transferor and the Transferee and becomes effective.

 

1.2           “Target Company” means Beijing Tianzhikangjian Investment Management Co., Ltd., a limited liability company duly formed and validly existing under the laws of China.

 

1.3           “Target Equity” means the 100% of equity in the Target Company (including the additional capital contribution made by the Transferor to the Target Company in the amount of 95,875,000 yuan) legally held by the Transferor.

 

1.4           “Transfer Price” means the consideration paid by the Transferee to the Transferor with respect of this Equity Transfer pursuant to the provisions of Article V hereof.

 

1.5           “This Equity Transfer” means the arrangement under which the Transferor transfers the Target Equity to the Transferee in accordance with the terms of this Agreement.

 

1.6           “Transaction Documents” mean, collectively, all documents signed by and between the Transferor, the Transferee and other relevant parties for the purpose of completing this Equity Transfer and other transactions.

 

1.7           “Working Day” means any day other than (i) Saturday, Sunday, (ii) public holidays in China, or (iii) the days on which banks in China are entitled or required to close their businesses pursuant to the laws of China.

 

1.8           “China” means the People’s Republic of China, for the purpose of this Agreement, excluding Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan.

 

Article II Equity Transfer

 

2.1           The Transferor agrees to transfer the Target Equity to the Transferee in accordance with the terms and conditions of this Agreement. The Transferee is willing to receive the Target Equity held by the Transferor in accordance with the terms and conditions of this Agreement, and pay the Equity Transfer Price as agreed upon herein.

 

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Article III Representations and Warranties

 

3.1           The Transferor irrevocably makes the following representations and warranties to the Transferee:

 

3.1.1                    The Transferor has the full capacity for civil rights and the right to execute this Agreement.

 

3.1.2                    The Transferor has the right to dispose of the Target Equity.

 

3.2           The Transferee irrevocably makes the following representations and warranties to the Transferor:

 

3.2.1                    The Transferee has the full capacity for civil rights and the right to execute this Agreement.

 

Article IV Obligations of the Parties

 

4.1           The Transferor agrees that it will, as soon as practicable as from the Execution Date hereof, cause the Target Company to complete the amendments to the register of shareholders and articles of association, and will also cause the Target Company to complete the change in business registration in relation to the transfer of the Target Equity and to go through the approval formalities with other competent departments.

 

4.2           The Transferee shall be obliged to pay the Transfer Price in a timely manner and comply with other obligations as set forth in this Agreement.

 

Article V Transfer Price and Payment

 

5.1           Both Parties agree that the Transferee shall pay RMB 169,406,250 yuan (i.e. one hundred and sixty-nine million four hundred and six thousand two hundred and fifty RMB yuan) to the Transferor as consideration of this Equity Transfer (hereinafter referred to as the “Equity Transfer Price”). Such Equity Transfer Price shall be paid in four installments, whose times of payment shall be determined by the Parties through consultation:

 

(1)                       The first installment of Equity Transfer Price shall be 95,875,000 yuan. If the equity acquisition transaction is closed in accordance with conditions as agreed by the Parties, the RMB 95,875,000 yuan loan under the Loan Agreement executed by and between the Transferor and the Transferee as of February 10th 2015 shall be automatically turned into the first installment of Equity Transfer Price. The first installment of Equity Transfer Price shall all be used as capital increase for the Target Company. Following the capital increase, the Target Company shall: (a) use 15,000,000 yuan to repay the loan obtained from Hanneng (Beijing) Investment consultation Co., Ltd.; (b) use the remaining 80,875,000 yuan to acquire 51% of holding interest in Guoyao Yangguang Health Technology Co., Ltd. from Guoyao International Health Company which is granted by listing in Beijing Equity Exchange.

 

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(2)                       The second installment of Equity Transfer Price shall be 73,531,250 yuan, of which, 5,000,000 yuan has already been paid as down payment, so actually, only an amount of 68,531,250 yuan is required, which shall be paid in three installments.

 

5.2           Except as otherwise agreed upon in writing by the Parties, the Transferee shall pay the Equity Transfer Price in RMB to the bank account designated by the Transferor at the time as agreed upon by the Parties.

 

Article VI Liability for Breach of Agreement

 

6.1           Where either party violates the terms of this Agreement which causes losses to the other party, the breaching party shall assume the corresponding liabilities for the breach.

 

6.2           Where either party violates the terms of this Agreement which causes losses to the Target Company, such party shall assume the corresponding liabilities for compensation.

 

Article VII Applicable Law and Dispute Resolution

 

7.1           The execution, validity, interpretation and performance of this Agreement as well as resolution of disputes under this Agreement shall be governed by the laws of China.

 

7.2           If any party violates this Agreement, the non-breaching party may send a written notice to the breaching party requiring the breaching party to cure its breach. If the breaching party fails to take remedial measures to cure its breach to the satisfaction of the non-breaching party within thirty (30) days after the notice is given, or if such breach is not capable of remedy essentially, then any party may submit the dispute or claim or controversy with respect to such breach to China International Economic and Trade Arbitration Commission for arbitration in Beijing. The arbitration award shall be final and binding upon the parties and enforceable in courts with competent jurisdiction in accordance with its terms. Any decision or award made by the arbitration tribunal may be enforceable by courts with competent jurisdiction at the location of the party against whom such decision or award is made, or by courts with competent jurisdiction at the place of the property of such party. The arbitration cost shall be borne by the losing party or be determined by the arbitration tribunal. If one party needs to take legal actions in any forms to enforce the arbitration award, then the breaching party shall pay all reasonable costs and expenses as well as legal expenses, including additional litigation or arbitration expenses incurred by the party applying for enforcement. During the period of dispute resolution, each party shall continue to perform this Agreement in all respects other than the matters in dispute.

 

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Article VIII Miscellaneous

 

8.1           Any taxes or expenses due or payable relating to this Equity Transfer shall be borne by the Parties respectively according to the laws.

 

8.2           A failure by one of the parties to perform the terms and provisions of this Agreement shall not be construed as modification to the terms hereof in any manner, nor shall it be deemed to be a waiver by any party of its rights.

 

8.3           The invalidity or unenforceability of any terms of Agreement shall not affect the validity and enforceability of any other terms hereof.

 

8.4           The original copy of this Agreement shall be written in Chinese and made in three counterparts. Each Party shall hold one (1) counterpart, and the Target Company shall hold the other one (1) counterpart for completing relevant formalities. All of the counterparts have the same legal effect.

 

8.5           This Agreement shall become effective and binding upon both Parties as of the date when it is executed by the Transferor and the Transferee.

 

(Content of this Agreement ends here and signature page follows.)

 

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(Signature page of the Equity Transfer Agreement)

 

 

	
Transferor: Hunan   Fengxun Digital Technology Co., Ltd.
    	
 
    
	
 
    	
 
    
	
(Signature):
    	
/s/ Guiyang He
    	
 
    
	
 
    	
 
    
	
Date:   February 10th 2015
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Transferee: iKang Guobin Health Examination Management Group   Co., Ltd.
    
	
 
    	
 
    
	
(Seal):
    	
/s/ Ligang Zhang
    	
 
    
	
 
    	
 
    
	
Date:   February 10th 2015
    	
 
    
				

 

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