Document:

EX-10.1

 

Exhibit 10.1

SECOND AMENDMENT

TO

ASSET PURCHASE AGREEMENT

     This Second Amendment to the Asset Purchase Agreement (as defined below), dated as of July 18,
2005 (this “Second Amendment”), is by and between Xanodyne Pharmaceuticals, Inc., a
Delaware corporation (“Purchaser”), aaiPharma Inc., a Delaware corporation
(“Parent”), and aaiPharma, LLC, a Delaware limited liability company (together with Parent,
“Sellers”).

RECITALS

     A.      This Second Amendment amends that certain Asset Purchase Agreement by and among Sellers and
Purchaser, dated as of May 6, 2005 as amended by that certain First Amendment to the Asset Purchase
Agreement by and among Seller and Purchasers dated as of June 7, 2005 (the “Asset Purchase
Agreement”).

     B.      Sellers and Purchaser desire to further modify the Asset Purchase Agreement, pursuant to
Section 13.5 of the Asset Purchase Agreement, upon the terms and conditions set forth in this
Second Amendment.

     C.      Capitalized terms contained herein shall have the meaning ascribed to them in the Asset
Purchase Agreement, unless otherwise expressly set forth herein

AGREEMENT

     NOW, THEREFORE, Sellers and Purchaser hereby agree as follows:

ARTICLE I

AMENDMENTS

     Section 1.1      The following definitions set forth in Section 1.1 of the Asset Purchase
Agreement are hereby amended and restated as follows:

     "‘Manufacturing Agreement’ means the agreement between Purchaser and Sellers
substantially in the form attached hereto as Annex A.”

     "‘Services Agreement’ means the agreement to provide services with respect to the
Marketed Products, Purchaser Developed Products, Lifecycle Products, and New Products,
substantially in the form attached hereto as Annex B.”

     Section 3.1      Section 3.1 of the Asset Purchase Agreement is hereby amended and restated in its
entirety to read as follows:

 

 

     “Consideration. The aggregate consideration for the Purchased Assets shall be (i) the
payment by Purchaser to Seller, in the manner provided in Section 3.9 hereof, of
$209,250,000, less the Development Costs, if any (the “Purchase Price”), provided
that if the Closing Date does not occur by October 8, 2005 (the “Adjustment Deadline”), the
Purchase Price shall be reduced by $1,500,000 on each weekly anniversary of the Adjustment Deadline
prior to the Closing Date (the “Purchase Price Adjustment”), provided that the
Purchase Price Adjustment shall not be applicable to any week (or portion thereof) after the
Adjustment Deadline in which there shall be an uncured breach by Purchaser of covenant or agreement
contained in this Agreement which would result in a failure of a condition set forth in Section
10.2 or 10.3 and all other conditions set forth in Article X (other than
conditions that by their nature are to be satisfied at the Closing) to have been satisfied;
provided, further, that in no event, shall the Purchase Price Adjustment exceed
$6,000,000 in the aggregate, (ii) the assumption by Purchaser of the Assumed Liabilities, and (iii)
the payment by Purchaser to Sellers of royalty payments pursuant to Section 3.2.
Commencing on November 6, 2005 and provided that the Closing Date has not yet occurred, Purchaser
shall have the right to terminate this Agreement pursuant to Section 4.4; provided,
however, that in the event Purchaser terminates this Agreement pursuant to Section
4.4, Purchaser shall be paid the Expense Reimbursement on the first (1st) Business
Day after such termination and Purchaser shall remain entitled to receive the Break-Up Fee in
accordance with Section 7.1 upon the satisfaction of the conditions set forth therein.”

     Schedule 1.1(k)      Schedule 1.1(k) of the Asset Purchase Agreement is hereby amended and restated
in its entirety to read as set forth in Annex C hereto.

     Schedule 2.7(i)       Schedule 2.7(i) is hereby deleted in its entirety.

     Schedule 2.7(ii)      Schedule 2.7(ii) is hereby deleted in its entirety.

     Exhibit E                Exhibit E is hereby deleted in its entirety.

     Exhibit G                Exhibit G is hereby deleted in its entirety.

ARTICLE II

MISCELLANEOUS

     Section 2.1      This Second Amendment contains the entire agreement of the Parties with respect to
the subject matter covered in this Second Amendment.

     Section 2.2      This Second Amendment shall be governed by and construed in accordance with the
laws of the State of New York applicable to contracts made and performed in such State.

     Section 2.3      Except as amended hereby, all terms, conditions and provisions of the Asset
Purchase Agreement remain in full force and effect, and the Asset Purchase Agreement shall continue
in full force and effect.

2

 

     Section 2.4      This Second Amendment may be executed in two or more counterparts, all of which
shall be considered one and the same agreement, and shall become effective when one or more such
counterparts have been signed by each of the Parties and delivered to the other Party.

[Signature Page Immediately Follows]

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     IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be executed by
their respective officers thereunto duly authorized, as of the date first written above.

	 	 	 	 	 
	 

	 	XANODYNE PHARMACEUTICALS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William A. Nuerge
	 

	 	 	 	 
	 

	 	 	 	Name: William A. Nuerge

Title: Chief Executive Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	AAIPHARMA INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ludo J. Reynders
	 

	 	 	 	 
	 

	 	 	 	Name: Ludo J. Reynders, Ph. D.

Title: President and Chief Executive Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	AAIPHARMA, LLC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ludo J. Reynders
	 

	 	 	 	 
	 

	 	 	 	Name: Ludo J. Reynders, Ph. D.

Title: President and Chief Executive Officer

4EX-10.2

 

Exhibit 10.2

FIRST AMENDMENT

TO

ASSET PURCHASE AGREEMENT

This First Amendment to the Asset Purchase Agreement (as defined below), dated as of June 7, 2005
(this “First Amendment”), is by and between Xanodyne Pharmaceuticals, Inc., a Delaware
corporation (“Purchaser”), aaiPharma Inc., a Delaware corporation (“Parent”), and
aaiPharma, LLC, a Delaware limited liability company (together with Parent, “Sellers”).

RECITALS

     A.      This First Amendment amends that certain Asset Purchase Agreement (the “Asset Purchase
Agreement”), by and among Sellers and Purchaser, dated as of May 6, 2003.

     B.      Sellers and Purchaser desire to modify the Asset Purchase Agreement, pursuant to Section
13.5 of the Asset Purchase Agreement, upon the terms and conditions set forth in this First
Amendment.

     C.      Capitalized terms contained herein shall have the meaning ascribed to them in the Asset
Purchase Agreement, unless otherwise expressly set forth herein.

AGREEMENT

NOW THEREFORE, Sellers and Purchaser hereby agree as follows:

ARTICLE I

AMENDMENTS

     Section 1.1      The definition of “Alternative Transaction” in the Asset Purchase Agreement is
hereby amended and restated in its entirety to read as follows:

“Alternative Transaction” means (a) the sale (whether by stock sale, merger, consolidation
or otherwise) of all or a substantial portion of the capital stock of Sellers, (b) the sale of all
or any of the Purchased Assets pursuant to the Bidding Procedures, or (c) a transaction or series
of transactions outside or independent of the Bidding Procedures that result in the Sellers
realizing not less than an aggregate of $75,000,000 in cash and/or fair market value of debt and/or
equity securities (such fair market value to be determined by the Bankruptcy Court or, if Sellers
shall not then be the subjects of a Chapter 11 Case, then jointly by Sellers and Purchaser or,
failing such joint determination, by an independent nationally recognized investment banking firm
jointly selected by Sellers and Purchaser or, failing such joint selection, by such an independent
nationally recognized investment banking firm selected by two other investment banking firms
selected one each by Sellers and Purchaser) from the sale or transfer of Purchased Assets, in each
case to a Person other than Purchaser, excluding the sale of Inventory in the Ordinary Course of

 

 

Business; provided, however, that a sale by a chapter 7 trustee will not constitute
an “Alternative Transaction.”

     Section 1.2      The definition of “Restructuring Transaction” in the Asset Purchase Agreement is
hereby amended and restated in its entirety to read as follows:

"‘Restructuring Transaction’ means (a) a recapitalization transaction involving, in whole
or in part, Sellers and its existing security holders or creditors, or (b) a transaction or series
of transactions, including by way of a plan of reorganization, in connection with a chapter 11
liquidation or reorganization or other continuation of Seller’s business relating to some or all of
the Purchased Assets; provided, however, that a sale by a chapter 7 trustee will
not constitute an “Restructuring Transaction.”

     Section 1.3      Section 7.1(a) of the Asset Purchase Agreement is hereby amended and restated in
its entirety to read as follows:

"(a) Sellers acknowledge and agree that Purchaser has expended considerable time and expense in
connection with this Agreement and the negotiation thereof and the identification and
quantification of assets of Sellers. In consideration therefor, Sellers shall file with and seek
the approval of the Bankruptcy Court of the Approval Motion, including the Break-Up Fee and Expense
Reimbursement, and the entry by the Bankruptcy Court of the Bidding Procedures Order approving the
payment of the Break-Up Fee in an amount equal to Four Million Dollars ($4,000,000) and the Expense
Reimbursement in an amount not to exceed One Million Seven Hundred Fifty Thousand Dollars
($1,750,000) (not including any amounts previously paid by Sellers) for Purchaser’s reasonable
out-of-pocket documented expenses incurred in connection with the transactions contemplated hereby
and the financing thereof  and deeming the Break-Up Fee and the Expense Reimbursement as
administrative priority expense claims under Sections 503(b) and 507(a)(1) of the Bankruptcy Code.”

     Section 1.4      Section 7.1(d) of the Asset Purchase Agreement is hereby amended and restated in
its entirety to read as follows:

"(d) If on or prior to twelve (12) months following the date of termination of this Agreement
Sellers file with the Bankruptcy Court a Restructuring Transaction or enter into a Restructuring
Transaction, Purchaser shall have an allowed administrative priority expense claim under Sections
503(b) and 507(a)(1) of the Bankruptcy Code for an Expense Reimbursement in an amount equal to
Three Million Dollars ($3,000,000) (in each case less any amount previously paid to Purchaser in
accordance with Section 7.1(b)), without regard to actual expenses incurred, and Sellers
shall pay such amount to Purchaser on the first (1st) Business Day after consummation of
such Restructuring Transaction.”

     Section 1.5      Exhibit F of the Asset Purchase Agreement is hereby amended and restated in its
entirety to read as set forth in Annex A hereto.

     Section 1.6      Exhibit I of the Asset Purchase Agreement is hereby amended and restated in its
entirety to read as set forth in Annex B hereto.

2

 

ARTICLE II

MISCELLANEOUS

     Section 2.1      This First Amendment contains the entire agreement of the parties with respect to
the subject matter covered in this First Amendment.

     Section 2.2      This First Amendment shall be governed by and construed in accordance with the
laws of the State of New York applicable to contracts made and performed in such State.

     Section 2.3      Except as amended hereby, all terms, conditions and provisions of the Asset
Purchase Agreement remain in full force and effect, and the Asset Purchase Agreement shall continue
in full force and effect.

     Section 2.4      This First Amendment may be executed in two or more counterparts, all of which
shall be considered one and the same agreement, and shall become effective when one or more such
counterparts have been signed by each of the parties and delivered to the other party.

[Signature Page Immediately Follows]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by
their respective officers thereunto duly authorized, as of the date first written above.

	 	 	 	 	 
	 

	 	XANODYNE PHARMACEUTICALS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William A. Nuerge
	 

	 	 	 	 
	 

	 	 	 	Name: William A. Nuerge

Title: Chief Executive Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	AAIPHARMA INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ludo J. Reynders
	 

	 	 	 	 
	 

	 	 	 	Name: Ludo J. Reynders, Ph. D.

Title: President and Chief Executive Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	AAIPHARMA, LLC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ludo J. Reynders
	 

	 	 	 	 
	 

	 	 	 	Name: Ludo J. Reynders, Ph. D.

Title: President and Chief Executive Officer

4

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