Document:

exv10w2

Exhibit 10.2

THE MEDICINES COMPANY

Restricted Stock Agreement

Granted Under Amended and Restated 2004 Stock Incentive Plan

     THIS AGREEMENT made as of this ___ day of ________, 20__, between The Medicines Company, a
Delaware corporation (the “Company”) and _______________ (the “Participant”).

     For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:

     1. Issuance of Shares.

     The Company shall issue to the Participant, subject to the terms and conditions set forth in
this Agreement and in the Company’s Amended and Restated 2004 Stock Incentive Plan (the “Plan”),
_________ shares (the “Shares”) of common stock, $0.001 par value, of the Company (“Common Stock”)
in consideration of employment services rendered and to be rendered by the Participant to the
Company. The Participant agrees that the Shares shall be subject to vesting set forth in Section 2
of this Agreement and the restrictions on transfer set forth in Section 3 of this Agreement.

     2. Vesting.

          (a) The Shares are subject to vesting in annual increments of 25% per year (the “Vesting
Requirements”) such that 25% of the total number of Shares shall vest on ____________, 20__ (the
“Initial Vesting Date”) as long as the Participant is employed by the Company on such date and the
remaining 75% of the Shares shall vest in equal 25% increments on each anniversary of the Initial
Vesting Date (each, a “Subsequent Vesting Date”) as long as the Participant is employed by the
Company on each such Subsequent Vesting Date. Any fractional number of Shares resulting from the
application of the foregoing percentages shall be rounded down to the nearest whole number of
Shares.

          (b) In the event that the Participant ceases to be employed by the Company for any reason or
no reason, with or without cause, prior to ____________, 20__,
all of the Shares that are unvested as of the time the Participant’s employment ceases shall be forfeited immediately and
automatically to the Company, without the payment of any consideration to the Participant,
effective as of such time. The Participant hereby authorizes the Company to take any actions
necessary or appropriate to cancel any certificate(s) representing forfeited Shares and transfer
ownership of such forfeited Shares to the Company; if the Company or its transfer agent requires an
executed stock power or similar confirmatory instrument in connection with such cancellation and
transfer, the Participant shall promptly execute and deliver the same to the Company.

 

 

          (c) If the Participant is employed by a parent or subsidiary of the Company, any references in
this Agreement to employment with the Company or termination of employment by or with the Company
shall instead be deemed to refer to such parent or subsidiary.

     3. Restrictions on Transfer. The Participant shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”) any unvested Shares or any Accrued Dividends (as defined below) with respect thereto,
or any interest therein, except that the Participant may transfer such Shares and associated
Accrued Dividends, if any, (i) to or for the benefit of any spouse, children, parents, uncles,
aunts, siblings, grandchildren and any other relatives approved by the Board of Directors
(collectively, “Approved Relatives”) or to a trust established solely for the benefit of the
Participant and/or Approved Relatives, provided that such Shares and associated Accrued
Dividends, if any, shall remain subject to this Agreement (including without limitation the
forfeiture provisions set forth in Section 2 hereto and the restrictions on transfer set forth in
this Section 3) and such permitted transferee shall, as a condition to such transfer, deliver to
the Company a written instrument confirming that such transferee shall be bound by all of the terms
and conditions of this Agreement or (ii) as part of the sale of all or substantially all of the
shares of capital stock of the Company (including pursuant to a merger or consolidation),
provided that, in accordance with Section 7(b) hereof, the cash, securities or other
property received by the Participant in connection with such transaction shall remain subject to
this Agreement.

     4. Escrow.

     Certificates for the Shares shall be issued in the Participant’s name and shall be held by the
Company’s transfer agent. Following the vesting of any Shares pursuant to Section 2 above, the
Company shall, if requested by the Participant, deliver to the Participant a certificate
representing the vested Shares.

     5. Restrictive Legends.

     All certificates representing Shares shall have affixed thereto a legend in substantially the
following form, in addition to any other legends that may be required under federal or state
securities laws:

“The shares of stock represented by this certificate are subject to
forfeiture and restrictions on transfer set forth in a certain
Restricted Stock Agreement between the corporation and the
registered owner of these shares (or his predecessor in interest),
and such Agreement is available for inspection without charge at the
office of the Secretary of the corporation.”

     6. Rights as a Shareholder; Dividends.

          (a) Except as otherwise provided in this Agreement, for so long as the Participant is the
registered owner of the Shares, the Participant shall have all rights as a shareholder with respect
to the Shares, whether vested or unvested, including, without limitation,

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any rights to receive
dividends and distributions with respect to the Shares and to vote the Shares
and act in respect of the Shares at any meeting of shareholders.

          (b) Notwithstanding the foregoing, any dividends, whether in cash, stock or property, declared
and paid by the Company with respect to Shares that have not yet vested in accordance with Section
2(a) of this Agreement (“Accrued Dividends”) shall vest and be paid to the Participant, without
interest, only if and when such Shares vest. If Accrued Dividends consist of shares of capital
stock, certificates for such shares will be issued and the unvested Accrued Dividends shall be held
in the same manner as certificates for Shares are issued and held under Section 4 above.

          (c) In the event that the Participant forfeits Shares as provided under Section 2(b) hereof,
the Participant shall also forfeit any Accrued Dividends declared and paid by the Company with
respect to such Shares, and all such unvested Accrued Dividends shall be cancelled by the Company.
The Participant shall have no further rights with respect to any Accrued Dividends that are so
forfeited. If the Accrued Dividends consist of shares of capital stock, such Accrued Dividends
will be forfeited and cancelled in the same manner and under the same terms as the forfeited Shares
under Section 2(b).

          (d) After the time at which any Shares are forfeited pursuant to subsection 2(b) hereof, the
Company shall not pay any dividend to the Participant on account of such Shares or permit the
Participant to exercise any of the privileges or rights of a shareholder with respect to such
Shares, but shall, in so far as permitted by law, treat the Company as the owner of such Shares.

     7. Provisions of the Plan.

          (a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to
the Participant with this Agreement.

          (b) As provided in the Plan, upon the occurrence of a Reorganization Event (as defined in the
Plan), the rights of the Company hereunder shall inure to the benefit of the Company’s successor
and (i) shall apply to the cash, securities or other property which the Shares and any Accrued
Dividends consisting of shares of the Company’s capital stock were converted into or exchanged for
pursuant to such Reorganization Event in the same manner and to the same extent as they applied to
the Shares and such Accrued Dividends under this Agreement and (ii) shall apply to any other
Accrued Dividends in the same manner and to the same extent as they applied to such Accrued
Dividends under this Agreement. If, in connection with a Reorganization Event, a portion of the
cash, securities and/or other property received upon the conversion or exchange of the Shares or
Accrued Dividends, if any, is to be placed into escrow to secure indemnification or other
obligations, the mix between the vested and unvested portion of such cash, securities and/or other
property that is placed into escrow shall be the same as the mix between the vested and unvested
portion of such cash, securities and/or other property that is not subject to escrow.

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     8. Withholding Taxes.

          (a) The Participant acknowledges and agrees that the Company will satisfy the Participant’s
minimum withholding tax obligation with respect to the vesting of Shares and
the vesting and payment of Accrued Dividends by (i) withholding a portion of the shares of
Common Stock otherwise deliverable to the Participant, with such shares being valued at their fair
market value as of the date on which the taxable event that gives rise to the withholding
requirement occurs or (ii) by withholding a portion of payments of any other kind otherwise due to
the Participant. Only the required statutory minimum tax may be withheld; excess tax withholding
is not allowed. To effect the withholding of a portion of Shares, the Participant hereby authorizes
the Company to take any actions necessary or appropriate to cancel any certificate(s) representing
such withheld Shares and transfer ownership of such withheld Shares to the Company; and if the
Company or its transfer agent requires an executed stock power or similar confirmatory instrument
in connection with such cancellation and transfer, the Participant shall promptly execute and
deliver the same to the Company.

          (b) The Participant has reviewed with the Participant’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by this
Agreement. The Participant is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents with respect to the tax consequences relating
to the Shares and Accrued Dividends, if any. The Participant understands that the Participant (and
not the Company) shall be responsible for the Participant’s own tax liability that may arise as a
result of this investment or the transactions contemplated by this Agreement. The Participant
acknowledges that he or she has been informed of the availability of making an election under
Section 83(b) of the Internal Revenue Code, as amended, with respect to the issuance of the Shares
and that the Participant has decided not to file a Section 83(b) election.

     9. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the Shares and Accrued Dividends, if any, pursuant to Sections 2 and 6 hereof is earned only by
continuing service as an employee at the will of the Company (not through the act of being hired or
purchasing Shares hereunder). The Participant further acknowledges and agrees that the
transactions contemplated hereunder and the vesting terms set forth herein do not constitute an
express or implied promise of continued engagement as an employee for the vesting period, for any
period, or at all.

          (b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

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          (d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 3 of this Agreement.

          (e) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery, facsimile delivery or delivery by overnight
courier, addressed to the other party hereto at the address shown beneath his or its respective
signature to this Agreement, or at such other address or addresses as either party shall designate
to the other in accordance with this Section 9(e).

          (f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (g) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (h) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (i) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the State of Delaware without regard to any applicable
conflicts of laws.

          (j) Participant’s Acknowledgments. The Participant acknowledges that he or she has
read this Agreement, has received and read the Plan, and understands the terms and conditions of
this Agreement and the Plan. The Participant also acknowledges that he or she: (i) has been
represented in the preparation, negotiation, and execution of this Agreement by legal counsel of
the Participant’s own choice or has voluntarily declined to seek such counsel; (ii) understands the
terms and consequences of this Agreement; (iii) is fully aware of the legal and binding effect of
this Agreement; and (iv) understands that the law firm of Wilmer Cutler Pickering Hale and Dorr,
LLP, is acting as counsel to the Company in connection with the transactions contemplated by the
Agreement, and is not acting as counsel for the Participant.

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

	 	 	 	 	 	 	 

	 	 	THE MEDICINES COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 

- 6 -exv10w1

Exhibit 10.1

*** INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT WAS REQUESTED.
ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

SETTLEMENT AGREEMENT

     This Settlement Agreement (the “Agreement”) is made and entered into as of July 22, 2010 (the
“Effective Date”), by and between Medicis Pharmaceutical Corporation, a Delaware corporation with
offices located at 7720 North Dobson Road, Scottsdale, Arizona 85256, U.S.A. on behalf of itself
and its Affiliates (collectively, “Medicis”), and Mylan Inc., a Pennsylvania corporation with
offices located at 1500 Corporate Drive, Canonsburg, Pennsylvania 15317; and Matrix Laboratories
Ltd., a subsidiary of Mylan Inc. with a principal place of business at 1-1-15/1, Alexander Road, Secunderabad 500-003 India, on behalf of themselves and their Affiliates
(both collectively referred to herein as “Mylan”). Medicis and Mylan may each be referred to
herein individually as a “Party” and collectively as the “Parties.”

RECITALS

     WHEREAS, Medicis has filed complaints against Mylan in actions captioned Medicis
Pharmaceutical Corp. v. Mylan Inc. et al., Case No. 09-CV-33 (LPS) (D. Del.) and Medicis
Pharmaceutical Corp. v. Mylan Inc. et al., Case No. 10-CV-524 (LPS) (D. Del.) (collectively, the
“Litigation”), which are pending in the United States District Court for the District of Delaware
(the “Court”);

     WHEREAS, contemporaneous with the execution of this Agreement, the Parties will execute a
License Agreement (“License Agreement”) having the same effective date as the Effective Date of
this Agreement;

     WHEREAS, the Parties expressly recognize that the License Agreement is an integral part of the
consideration that the Parties are exchanging as part of this Agreement and that the Parties are
relying on the representations made in and the rights granted by the License Agreement in entering
into this Agreement and in executing the Consent Judgment and Injunction, and therefore, the
License Agreement is not revocable except as expressly provided in the License Agreement itself;
and

     WHEREAS, to avoid the expense of further litigation the Parties desire to settle the
Litigation on the terms set forth herein.

     NOW, THEREFORE, in consideration of the foregoing, of the mutual covenants and promises set
forth herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

     1. Definitions.

          1.1 “Affiliate” means, with respect to any entity, any other entity that directly or
indirectly controls, is controlled by, or is under common control with, such entity. An entity
shall be regarded as in control of another entity if it owns, or directly or indirectly controls,
at least fifty percent (50%) of the voting stock or other ownership interest of the other entity,
or if it directly or indirectly possesses the power to direct or cause the direction of the
management and

 

 

policies of the other entity by any means whatsoever.

          1.2 “ANDA” means an Abbreviated New Drug Application for minocycline hydrochloride extended
release tablets and any supplements and amendments thereto, for which the reference listed drug
(“RLD”) is a Solodyn Product as defined herein.

          1.3 “Business Day” means any day other than a Saturday, a Sunday or a day on which the state
or federal courts located in the State of Delaware are authorized or obligated by law or executive
order to be closed.

          1.4 “Generic Product” means ***.

          1.5 “Solodyn Products” means the Solodyn products listed in Exhibit A.

     2. Dismissal of Claims and Permanent Injunction. Within *** after execution of this
Agreement and the License Agreement, Medicis shall file with the Court an unopposed motion for
entry of Consent Judgment and Permanent Injunction, attached hereto as Exhibit B, asking the Court
to dismiss the Litigation with prejudice and enter a Permanent Injunction against Mylan’s
manufacture, use, offer to sell, sale, or importation into the United States of any Generic
Products that are as of the Effective Date the subject of Mylan’s ANDA No. 90-911 and Mylan’s ANDA
No. 20-1467 except to the extent Mylan is granted a license under the License Agreement, and from
inducing others to infringe U.S. Patent No. 5,908,838 by inducing others to manufacture, use, offer
to sell, sell, or import into the United States any Generic Products that are the subject of
Mylan’s ANDA No. 90-911 and Mylan’s ANDA No. 20-1467 except to the extent Mylan is granted a
license under the License Agreement.

     3. ***. ***, or (b) ***.

     4. Releases.

          4.1. Medicis Release of Mylan. ***.

          4.2. Mylan Release of Medicis. ***.

     5. Confidentiality. The Parties agree that no information concerning this Agreement
or the License Agreement shall be made public by either Party without the prior written consent of
the other. Notwithstanding the foregoing, Mylan shall have the right to announce the termination
of the Litigation in a press release as set forth on Exhibit C to this Agreement. Notwithstanding
anything to the contrary in this Agreement, the parties understand and agree that either party,
may, if so required, disclose some or all of the information included in this Agreement (a) in
order to comply with its obligations under the law, including the United States Securities Act of
1933 and the United States Securities Exchange Act of 1934 and The Drug Price Competition and
Patent Term Restoration Act of 1984, as amended by The Medicare
Prescription Drug, Improvement and Modernization Act of 2003; (b) in order to comply with the
listing standards or agreements of any national or international securities exchange or The NASDAQ
Stock Market or New York Stock Exchange or other similar laws of a governmental authority; (c) to
respond to an inquiry of a governmental authority or regulatory authority as required by law; or
(d) in a judicial, administrative or arbitration proceeding. In any such event

 

 

the party making
such disclosure shall (i) provide the other party with as much advance notice as reasonably
practicable of the required disclosure, (ii) cooperate with the other party in any attempt to
prevent or limit the disclosure, and (iii) limit any disclosure to the specific purpose at issue.
In connection with any filing of a copy of this Agreement with the Securities and Exchange
Commission, the filing party shall endeavor to obtain confidential treatment of economic and trade
secret information, and shall keep the other party informed as the planned filing (including, but
not limited to providing the other party with the proposed filing reasonably in advance of making
the planned filing) and consider the requests of the other party regarding such confidential
treatment.

     6. Due Authorization. The Parties represent and warrant that the individuals signing
this Agreement on their behalf are duly authorized and fully competent to do so.

     7. Assignment, Predecessors, Successors and Assigns. This Agreement shall be binding
upon and shall inure to the benefit of the Parties, their Affiliates, and their respective
permitted successors and assigns.

     8. Construction. The Parties hereby mutually acknowledge and represent that they have
been fully advised by their respective legal counsel of their rights and responsibilities under
this Agreement, that they have read, know and understand completely the contents of this Agreement,
and that they have voluntarily executed the same. The Parties further mutually acknowledge that
they have had input into the drafting of this Agreement and that, accordingly, in any construction
to be made of the Agreement, it shall not be construed for or against any party, but rather shall
be given a fair and reasonable interpretation, based on the plain language of the Agreement and the
expressed intent of the Parties.

     9. Entire Agreement. The Parties acknowledge that this Agreement sets forth the entire
agreement and understanding of the Parties and supersedes all prior written or oral agreements or
understandings with respect to the subject matter hereof. No modification of any of the terms of
this Agreement, or any amendments thereto, shall be deemed to be valid unless in writing and signed
by an authorized agent or representative of both parties hereto. No course of dealing or usage of
trade shall be used to modify the terms and conditions herein. This Agreement shall be binding on
each of Medicis and Mylan and their respective permitted successors and assigns.

     10. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. The Parties agree that telecopied or PDF copies of signatures will be sufficient, with
original signature pages to be supplied and exchanged at a later date.

     11. Governing Law. ***.

     12. Waiver of Claims and Defenses. The Parties agree that this Agreement shall not be
subject to any claim of fraud, duress, deceit, mistake of law or mistake of fact, and that it
expresses the full, and complete settlement of the Parties.

[Remainder of this page intentionally blank]

 

 

     IN WITNESS WHEREOF, the Parties have fully executed and delivered this Settlement Agreement as
of the day and year first written above.

	 	 	 	 	 
	
MEDICIS PHARMACEUTICAL CORP.

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

	 	 	 	 	 
	

MYLAN INC.

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

	 	 	 	 	 
	MATRIX LABORATORIES LTD.

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT A

Solodyn Products

	 	 	 
	PRODUCT	 	NDC
	Solodyn 45mg

	 	99207-0460-[All]
	Solodyn 65mg

	 	99207-0463-[All]
	Solodyn 90mg

	 	99207-0461-[All]
	Solodyn 115mg

	 	99207-464-[All]
	Solodyn 135mg

	 	99207-0462-[All]

 

 

EXHIBIT B

Consent Judgment and Permanent Injunction

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF DELAWARE

	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	MEDICIS PHARMACEUTICAL CORPORATION,

	 	 	)	 	 	C.A. No. 09-033 (LPS)

C.A. No. 10-524 (LPS)

(Consolidated)
	 

	 	 	)	 	 
	Plaintiff,

	 	 	)	 	 
	 

	 	 	)	 	 
	          v.

	 	 	)	 	 
	 

	 	 	)	 	 
	MYLAN INC..; and

	 	 	)	 	 
	MATRIX LABORATORIES LTD.

	 	 	)	 	 
	 

	 	 	)	 	 
	Defendants.

	 		)
	 	 
	 	 	 	)	 	 	 
	 	 	 	)	 	 	 
	 	 	 	)	 	 	 
	 	 	 	)	 	 	 
	 	 	 	 	 	 	 

CONSENT JUDGMENT AND

PERMANENT INJUNCTION AS TO MYLAN

          This matter is before the Court on the unopposed motion of Plaintiff Medicis Pharmaceutical
Corporation (“Medicis”) and Defendants Mylan Inc. and Matrix Laboratories Ltd. (collectively
referred to herein as “Mylan”).

          WHEREAS, this Consent Judgment and Permanent Injunction as to Mylan concerns only Medicis’s
claims against Mylan and Mylan’s counterclaims against Medicis in C.A. No. 09-435 (LPS) and C.A.
No. 10-524 (LPS) (collectively referred to herein as the “Litigations”).

          WHEREAS, Medicis requests that this Consent Judgment and Permanent Injunction as to Mylan be
entered in the above-captioned cases, and Mylan does not oppose Medicis’s request.

 

 

          WHEREAS, Medicis owns United States Patent No. 5,908,838 (“the ‘838 patent”) as set forth in
the duly issued Ex Parte Reexamination Certificate on June 1, 2010, entitled “METHOD FOR TREATMENT
OF ACNE.”

          WHEREAS, Mylan submitted Abbreviated New Drug Application No. 90-911 (“Mylan 45/90/135mg
ANDA”) to the FDA under 21 U.S.C. § 355(j) seeking to obtain approval to commercially manufacture
and sell generic minocycline HCl extended release tablets in its 45 milligram (“mg”), 90 mg, and
135 mg strengths for the treatment of acne.

          WHEREAS, Mylan submitted Abbreviated New Drug Application No. 20-1467 (“Mylan 65/115mg ANDA”)
to the FDA under 21 U.S.C. § 355(j) seeking to obtain approval to commercially manufacture and sell
generic minocycline HCl extended release tablets in its 65 mg and 115 mg strengths for the
treatment of acne.

          WHEREAS, in the Litigations, Medicis alleged that Mylan infringed one or more of claims 3, 4,
12, 13, 19, 21, 23, 25, and 27-34 of the ‘838 patent under 35 U.S.C. § 271(e)(2) by virtue of
Mylan’s submissions of the Mylan 45/90/135mg ANDA and the Mylan 65/115mg ANDA to the FDA.

          WHEREAS, in the Litigations, Medicis alleged that it would be irreparably harmed if Mylan is
not enjoined from infringing or actively inducing or contributing to infringement of one or more of
claims 3, 4, 12, 13, 19, 21, 23, 25, and 27-34 of the ‘838 patent.

          WHEREAS, in the Litigations, Medicis requested that this Court enter a permanent injunction
enjoining Mylan from infringing the ‘838 patent.

          WHEREAS, Medicis and Mylan have reached an agreement to finally settle the Litigations as set
forth in this Consent Judgment and Permanent Injunction as to Mylan and a

 

 

separate confidential Settlement Agreement (“Settlement Agreement”) and confidential License
Agreement (“License Agreement”) which are contemporaneously and separately being executed.

          WHEREAS, final settlement of these Litigations will help Medicis and Mylan avoid the
substantial uncertainty and risks involved with prolonged litigations.

          WHEREAS, final settlement of the Litigations will permit Medicis and Mylan to save litigation
costs, as well as adhere to the judicially recognized mandate that encourages the settlement of
litigation whenever possible.

          WHEREAS, final settlement of the Litigations serves the public interest by saving judicial
resources and avoiding the risks to each of Medicis and Mylan associated with infringement.

          WHEREAS, Medicis and Mylan each consent to personal jurisdiction in Delaware for purposes of
enforcing the Settlement Agreement.

 

 

          IT IS HEREBY ORDERED, DECREED, and ADJUDGED as follows:

          1. The Court has jurisdiction over Medicis and Mylan and the subject matter of the
Litigations.

          2. Mylan acknowledges Medicis’s ownership and standing to sue for infringement of the ‘838
patent.

          3. Mylan acknowledges that the ‘838 patent is valid and enforceable, as described more fully
in the License Agreement.

          4. Mylan acknowledges that that the making, using, offering to sell, selling and/or
importation of the products described in the Mylan 45/90/135 ANDA and the Mylan 65/115 ANDA
infringes one or more claims of the ‘838 patent under 35 U.S.C. § 271 and that Medicis did not
authorize the manufacture, use, sale, offer for sale, importation and distribution of the products
described in the Mylan 45/90/135 ANDA and the Mylan 65/115 ANDA.

          5. As described more fully in the Settlement Agreement, Mylan and its Affiliates are
permanently enjoined as of the date hereof from infringing the ‘838 patent by the manufacture, use,
offer to sell, sale, importation, or distribution of any current products, or future products
having the same strength and dosage form of the current Solodyn® products, that are the subject of
the Mylan 45/90/135 ANDA and the Mylan 65/115 ANDA that is not pursuant to a license granted by
Medicis, and from inducing others to infringe the ‘838 patent by inducing others to manufacture,
use, offer to sell, sale, import, or distribute any current products, or future products having the
same strength and dosage form of the current Solodyn® products, that are the subject of the Mylan
45/90/135 ANDA and the Mylan 65/115 ANDA that is not pursuant to a license granted by Medicis.

 

 

          6. Medicis acknowledges that Mylan maintains its Paragraph IV certification pursuant to 21
C.F.R. § 314.94(a)(12)(v) as provided in the License Agreement.

          7. All claims and counterclaims in these Litigations are hereby dismissed without prejudice.

          8. The parties are hereby ordered to comply with the terms of the Settlement Agreement.

          9. Except as provided in the Settlement Agreement, each side shall bear its own costs.

          10. This Court shall retain jurisdiction over Mylan and Medicis for the purpose of enforcing
the terms of this Consent Judgment and Permanent Injunction and over any matters related to or
arising from the interpretation or enforcement of the Settlement Agreement or any legal or
equitable claim concerning the Settlement Agreement by any third party.

IT IS SO ORDERED, DECREED AND ADJUDGED this ___ day of July, 2010 by:

	 	 	 	 	 
	 	 
	
 	 
	The Honorable Leonard P. Stark 	 
	United States Magistrate Judge 	 

 

 

Agreed to:

	 	 	 	 	 
	MORRIS, NICHOLS, ARSHT & TUNNELL LLP

	 	 	 	YOUNG CONAWAY STARGATT & TAYLOR LLP
	 
	 	 	 	 
	 

	 	 	 	 
	Jack B. Blumenfeld (#1014)

	 	 	 	John W. Shaw (#3362)
	Karen Jacobs Louden (#2881)

	 	 	 	Karen E. Keller (#4489)
	1201 North Market Street

	 	 	 	The Brandywine Building
	Wilmington, DE 19899-1347

	 	 	 	1000 West Street, 17th Floor
	(302) 658-9200

	 	 	 	Wilmington, DE 19801
	jblumenfeld@mnat.com

	 	 	 	(302) 571-6600
	klouden@mnat.com

	 	 	 	jshaw@ycst.com
kkeller@ycst.com
	 
	 	 	 	 
	Attorneys for Medicis Pharmaceutical Corporation

	 	 	 	Attorneys for Mylan Inc. and Matrix Laboratories Ltd.
	 
	OF COUNSEL:

	 	 	 	OF COUNSEL:
	 
	Matthew D. Powers

	 	 	 	Shannon M. Bloodworth
	WEIL, GOTSHAL & MANGES LLP

	 	 	 	PERKINS COIE LLP
	201 Redwood Shores Parkway

	 	 	 	607 Fourteenth Street N.W.
	Redwood Shores, CA 94065

	 	 	 	Washington, DC 20005
	(650) 802-3000

	 	 	 	(202) 628-6600
	 
	 	 	 	 
	Elizabeth Stotland Weiswasser

	 	 	 	Scott D. Eads
	Jennifer H. Wu

	 	 	 	PERKINS COIE LLP
	Danielle Rosenthal

	 	 	 	1120 N.W. Couch Street, 10th Floor
	Caroline Simons

	 	 	 	Portland, OR 97209
	Josephine Young

	 	 	 	(503) 727-2000
	WEIL, GOTSHAL & MANGES LLP
	 	 	 	 
	767 Fifth Avenue
	 	 	 	 
	New York, NY 10153
	 	 	 	 
	(212) 310-8000
	 	 	 	 

 

 

EXHIBIT C

Press Release – Mylan

	 	 	 

	FOR IMMEDIATE RELEASE

	 	CONTACTS: Michael Laffin (Media)
	 

	 	724.514.1968
	 

	 	Kris King (Investors)
	 

	 	724.514.1813

Mylan Launches the Generic Version of Solodyn®, 45 mg, 90 mg and 135 mg Tablets,

Announces Settlement Agreement with Medicis

PITTSBURGH–July xx, 2010–Mylan Inc. (Nasdaq: MYL) today announced that its subsidiary Matrix
Laboratories Limited received final approval on July 20 from the U.S. Food and Drug Administration
(FDA) for its Abbreviated New Drug Application (ANDA) for Minocycline Hydrochloride Extended
Release Tablets 45 mg, 90 mg and 135 mg (Minocycline ER), the generic version of
Solodyn® ER, a treatment for acne, sold by Medicis Pharmaceutical Corporation (Medicis).
Mylan Pharmaceuticals Inc. commenced immediate shipment of the product after approval.

Mylan also announced that it reached settlement and license agreements with Medicis resolving
patent litigation relating to Minocycline ER, the company has ceased additional distribution.
Pursuant to the terms of the agreements, Medicis will release Mylan from any liability related to
the prior sales of this product, and Mylan will have the right to market Minocycline ER in the U.S.
beginning in November 2011 or earlier under certain circumstances. Additional terms of the
agreement were not disclosed.

Minocycline ER had U.S. sales of approximately $496 million for the 12 months ending March 31,
2010, according to IMS Health. Currently, Mylan has 131 ANDAs pending FDA approval representing
$92.1 billion in annual brand sales, according to IMS Health. Forty-one of these pending ANDAs are
potential first-to-file opportunities, representing $21.4 billion in annual brand sales, for the 12
months ending Dec. 31, 2009, according to IMS Health.

Mylan Inc. ranks among the leading generic and specialty pharmaceutical companies in the world and
provides products to customers in more than 140 countries and territories. The company maintains
one of the industry’s broadest and highest quality product portfolios supported by a robust product
pipeline; operates one of the world’s largest active pharmaceutical ingredient manufacturers; and
runs a specialty business focused on respiratory, allergy and psychiatric therapies. For more
information, please visit www.mylan.com.

This press release includes statements that constitute “forward-looking statements,” including with
regard to the settlement and marketing of a product. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Because such statements
inherently involve risks and uncertainties, actual future results may differ materially from those
expressed or implied by such forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to: any legal or regulatory challenges

 

 

to the settlement; strategies by competitors or other third parties to delay or prevent product
introductions; risks inherent in legal and regulatory processes; and the other risks detailed in
the company’s periodic filings with the Securities and Exchange Commission. The company undertakes
no obligation to update these statements for revisions or changes after the date of this release.

###

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