Document:

Nanophase Technologies Corporation 8-K

 

Exhibit 10.1

AMENDMENT
NO.4 TO

ZINC
OXIDE SUPPLY AGREEMENT

 

THIS
AMENDMENT NO. 4 TO ZINC OXIDE SUPPLY AGREEMENT is entered into as of January 1, 2019 by and between BASF CORPORATION, a Delaware
corporation (“BASF”) and NANOPHASE TECHNOLOGIES CORPORATION, a Delaware corporation (“Nanophase”).

 

RECITALS

A.                
Nanophase and BASF (as successor-in-interest
to Sun Smart, Inc.) entered into that certain Zinc Oxide Supply Agreement, dated September 16, 1999 (the “Agreement”),
as amended by that certain Amendment No. 1 to Zinc Oxide Supply Agreement dated January 2001, Amendment No. 2 to Zinc Oxide Supply
Agreement dated March 17, 2003, and Amendment No. 3 to Zinc Oxide Supply Agreement dated September 30, 2012 (collectively the
“Amendments”).

 

B.                
BASF and Nanophase desire to amend the Agreement
and Amendments as set forth herein.

 

NOW
THEREFORE, BE IT RESOLVED, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

		1.	The
                                         “Triggering Event” set forth in Section 5.01(e)(i) of the Agreement, as amended
                                         by Paragraph 1 of Amendment No. 2 to the Agreement,
                                         and amended by Paragraph 1 of Amendment No. 3, is hereby further amended to delete the
                                         language in Section 5.01(e)(i) of the Agreement and Paragraph 1 of Amendment No. 2 and
                                         Paragraph 1 of
                                         Amendment No.
                                         3, and replace it with the following
                                         language:

“(e)(i)
Earnings of Nanophase for the twelve-month period ending on the date of Nanophase’s most recent published quarterly financial
statements (calculated in accordance with generally accepted accounting principles applied on a consistent basis) shall be less
than $0 and cash and cash equivalents of Nanophase at the end of such period (calculated in accordance with generally accepted
accounting principles applied on a consistent basis) shall be less than $500,000. Cash and cash equivalents – including
any accounts receivable outstanding and due from BASF over 30 days from ship date ($[*] min), finished goods Z-COTE in Nanophase
inventory ($[*]max), and zinc metal Nanophase inventory ($[*]max) shall be less than $1,000,000.”

 

    	 

    	 

    

 

		2.	Section
                                         3.04 of the Agreement is hereby amended to delete the language in that section and replace
                                         it with the following language:

 

		a.	“Nanophase
                                         shall maintain inventory of manufactured Product available to fill orders from BASF equal
                                         to the higher of either [*]kg or the monthly average of the previous [*] months orders.
                                         Nanophase shall be required to establish this safety stock level by August 31, 2019.
                                         [*]kg minimum of inventory shall be established by Mar 31, 2019; 34,000 kg minimum of
                                         inventory shall be established by Jun 31, 2019; the full [*]kg minimum of inventory shall
                                         be established by Aug 31, 2019. This inventory value may be revised after Dec 31, 2019
                                         depending on business demands.”

 

		b.	Should
                                         BASF commercial requirements exceed [*] full truckloads during this time, Nanophase shall
                                         be permitted one week of additional time for each truckload shipped in excess of the
                                         [*] truckloads shipped to meet BASF demand.

 

		c.	Implementation
                                         grace period: During the ramp up of safety stock levels, Nanophase shall follow the same
                                         ramp up for working capital mix.

 

		d.	Implementation
                                         Requirements:

 

		i.	Q1
                                         2019: $500,000 cash minimum, plus [*]kg min. inventory

 

		ii.	Q2
                                         2019: $500,000 cash minimum, plus [*]kg min. inventory

 

		iii.	Q3
                                         2019: Full requirements outlined in amendment apply.

 

		3.	All
                                         other terms and conditions of the Agreement and the Amendments shall remain in full effect
                                         in accordance with their terms.

 

*Confidential
Treatment Requested

 

[Signatures
next page]

 

    	 

    	 

    

IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date first set forth above.

 

	Nanophase Technologies Corporation	 	BASF
Corporation
	 	 	 
	 	 	 
	By:	/s/ Jess Jankowski 	 	By:	/s/ Amy Ciemniecki
	Name:	Jess Jankowski 	 	Name:	Amy Ciemniecki
	Title:	President and CEO	 	Title:	Category Buyeramph_Ex10_45

		

			Exhibit 10.45

		

		
			FOURTH AMENDMENT TO SUPPLY AGREEMENT
		

		
			This fourth amendment (“Fourth Amendment”) to the Supply Agreement by and between MannKind Corporation (“MannKind”) and Amphastar Pharmaceuticals, Inc.  (“Amphastar”), originally dated July 31, 2014 and as previously amended on October 31, 2014, November 9, 2016 and April 11, 2018 (collectively, the “Agreement”), is hereby made as of the 24 day of December,  2018, by and between MannKind on the one hand, and on the other hand, Amphastar.  
		

		
			RECITALS:
		

		
			WHEREAS, MannKind and Amphastar entered into the Agreement pursuant to which Amphastar is to manufacture and supply the Product to MannKind, and MannKind is to purchase certain minimum quantities of the Product; and
		

		
			WHEREAS MannKind and Amphastar have determined it to be mutually beneficial to amend the Agreement as set forth herein.
		

		
			NOW, THEREFORE, for good and valuable consideration, MannKind and Amphastar, hereby agree to amend the Agreement as follows:
		

			
	
			
				 1.
			

			
	
			
			Definitions.  Unless otherwise defined herein, each of the capitalized terms used in this Fourth Amendment shall have the definition and meaning ascribed to it in the Agreement.

			
	
			
				 2.
			

			
	
			
			Amendment Fee.  No later than December 31, 2018, MannKind shall pay Amphastar an amendment fee in the amount of US $2.0 million (the “Amendment Fee”).

		
			3.Amendments to the Agreement. Effective upon the payment of the Amendment Fee, the Agreement shall be amended as follows:
		

		
			3.1The table in Section 6.1 of the Agreement shall be amended and replaced in its entirety with the following:
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Calendar Year

					
					
						Purchase Commitment Quantities (kg)

					
					
						Purchase Price (per gram)

					
					
						Delivery and Payment

				
	
					
						2014

					
					
						51

					
					
						EUR 77.50

					
					
						 

				
	
					
						2015

					
					
						299

					
					
						EUR 77.50

					
					
						 

				
	
					
						2016

					
					
						0

					
					
						EUR 77.50

					
					
						 

					
						 

				
	
					
						2017

					
					
						35

					
					
						EUR 77.50

					
					
						 

				
	
					
						2018

					
					
						57.5

					
					
						EUR 77.50

					
					
						 

				

		 

 

	
					
						

					
						2019

					
					
						75

					
					
						EUR 77.50

					
					
						Purchase Commitment Quantities of 25 kg shall be purchased in each of the first, second and fourth Quarters, which shall be payable to Amphastar no later than fifteen (15) days after the date of invoice.  

				
	
					
						2020

					
					
						205

					
					
						EUR 77.50

					
					
						25% of the Purchase Commitment Quantities shall be paid on a Quarterly basis.  

				
	
					
						2021

					
					
						205

					
					
						EUR 77.50

					
					
						25% of the Purchase Commitment Quantities shall be paid on a Quarterly basis.  

				
	
					
						2022

					
					
						255

					
					
						EUR 77.50

					
					
						25% of the Purchase Commitment Quantities shall be paid on a Quarterly basis.  

				
	
					
						2023

					
					
						255

					
					
						EUR 77.50

					
					
						25% of the Purchase Commitment Quantities shall be paid on a Quarterly basis.  

				
	
					
						2024

					
					
						112.5

					
					
						EUR 77.50

					
					
						25% of the Purchase Commitment Quantities shall be paid on a Quarterly basis.  

				

		
			 
		

		
			Notwithstanding anything to the contrary, in no event shall any of the Quarterly payments set forth in the Table above (Section 6.1 of the Agreement) be payable to Amphastar later than fifteen (15) days after the close of the corresponding calendar quarter.  
		

		
			3.2Section 10.1 of the Agreement shall be extended until December 31, 2024.  All other terms and conditions in paragraph 10.1 shall remain in full force and effect.  
		

			
	
			
				 4.
			

			
	
			
			Final Agreement.

		
			From and after the execution of this Fourth Amendment, all references in the Agreement (or in the Fourth Amendment) to “this Agreement,” “hereof,” “herein,” “hereto,” and similar words or phrases shall mean and refer to the Agreement as amended by this Fourth Amendment.  The Agreement as amended by this Fourth Amendment constitutes the entire agreement by and between the Parties as to the subject matter hereof.  Except as expressly modified by this Fourth Amendment, all other terms and conditions of the Agreement shall remain in full force and effect.
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			IN WITNESS WHEREOF, each of MannKind and Amphastar has caused this Fourth Amendment to be executed by their duly authorized officers.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						MannKind Corporation

					
						 

					
					
						 

					
					
						Amphastar Pharmaceuticals, Inc.

					
						 

				
	
					
						By:

					
					
						/s/ David Thomson

					
					
						 

					
					
						By:

					
					
						/s/ Jason Shandell

				
	
					
						Name:

					
					
						David Thomson

					
					
						 

					
					
						Name:

					
					
						Jason Shandell

				
	
					
						Title:

					
					
						EVP + General Counsel

					
					
						 

					
					
						Title:

					
					
						President + General Counsel

				

		
			 
		

		 

		

			3

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