Document:

PHRD DRAFT

October 6, 2006

 

Alpharma Inc. and certain of its Subsidiaries

One Executive Drive

Fort Lee, New Jersey 07024 

Ladies and Gentlemen:

Reference is made to that certain Amended and Restated Loan and Security Agreement dated March 10, 2006 (as at any time amended, the "Loan Agreement"), among Alpharma Inc., a Delaware corporation, Alpharma Operating Corporation, a Delaware corporation, Alpharma U.S. Inc., a Delaware corporation, Alpharma Euro Holdings Inc., a Delaware corporation, Alpharma (Bermuda) Inc., a Delaware corporation, Alpharma USHP Inc., a  Delaware corporation, Alpharma Animal Health Company, a Texas corporation, Mikjan Corporation, an Arkansas corporation, Alpharma Holdings Inc., a Delaware corporation, Alpharma Pharmaceuticals Inc., a Delaware corporation, Purepac Pharmaceutical Holdings, Inc., a Delaware corporation, Alpharma Branded Products Division Inc., a Delaware corporation, Barre Parent Corporation, a Delaware corporation, and Alpharma Investment Inc., a Delaware corporation (collectively, "Borrowers"), the various financial institutions party thereto from time to time (collectively, "Lenders") and Bank of America, N.A., a national banking association, in its capacity as collateral and administrative agent for the Lenders (together with its successors in such capacity, "Agent").  Capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms in the Loan Agreement.

The parties desire to amend the Loan Agreement as hereinafter set forth.

NOW, THEREFORE, for and in consideration of Ten Dollars in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

The Loan Agreement is hereby amended by deleting Section 10.1.14 in its entirety and by substituting in lieu thereof the following new Section 10.1.14:

10.1.14. Dissolution of Restrictive Subsidiaries. Upon receipt by Borrowers of tax clearance letters or other determination letters from the applicable Governmental Authority or the winding up or termination by Borrowers of any employee benefit plan in accordance with Applicable Law (but no later than December 31, 2006), cause to be filed with the appropriate Governmental Authority, articles of dissolution for each of Alpharma (Barbados) SRL, Danz Nutritional Limited, NMC Laboratories and Wynco LLC.

Each Borrower hereby ratifies and reaffirms the Obligations, each of the Loan Documents and all of such Borrower's covenants, duties, indebtedness and liabilities under the Loan Documents.   Each Borrower acknowledges and stipulates that the Loan Agreement and the other Loan Documents executed by such Borrower are legal, valid and binding obligations of such Borrower that are enforceable against such Borrower in accordance with the terms thereof, all of the Obligations are owing and payable without defense, offset or counterclaim (and to the extent there exists any such defense, offset or counterclaim on the date hereof, the same is hereby waived by such Borrower) and the security interests and Liens granted by such Borrower in favor of Agent are duly perfected, first priority security interests and Liens.

Each Borrower represents and warrants to Agent and Lenders, to induce Agent and Lenders to enter into this letter agreement, that no Default or Event of Default exists on the date hereof, the execution, delivery and performance of this letter agreement have been duly authorized by all requisite corporate action on the part of such Borrower, this letter agreement has been duly executed and delivered by such Borrower and all of the representations and warranties made by such Borrower in the Loan Agreement are true and correct on and as of the date hereof.

Each Borrower agrees that, upon the effectiveness of this letter agreement, each reference in the Loan Agreement to "this Agreement," "hereunder," or words of like import shall mean and be a reference to the Loan Agreement, as amended by this letter agreement, and each Borrower agrees that this letter agreement shall be part of the Loan Agreement and a breach of any representation, warranty or covenant herein shall constitute an Event of Default. 

Each Borrower agrees that (a) this letter agreement shall be governed by and construed in accordance with the internal laws of the State of New York; (b) this letter agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; (c) except as otherwise expressly provided in this letter agreement, nothing herein shall be deemed to amend or modify any provision of the Loan Agreement or any of the other Loan Documents, each of which shall remain in full force and effect; (d) this letter agreement is not intended to be, nor shall it be construed to create, a novation or accord and satisfaction, and the Loan Agreement as herein modified shall continue in full force and effect; (e) this letter agreement may be executed in any number of counterparts and by different parties to this letter agreement on separate counterparts, each  of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement; and (f) any signature delivered by a party by facsimile transmission shall be deemed to be an original signature hereto.  To the fullest extent permitted by Applicable Law, the parties hereto each hereby waives the right to trial by jury in any action, suit, counterclaim or proceeding arising out of or related to this letter agreement.

[Signatures commence on following page]

The parties hereto have caused this letter agreement to be duly executed under seal and delivered by their respective duly authorized officers on the date first written above.

Very truly yours,

BANK OF AMERICA, N.A., as Agent

By:/s/ John Olsen

Title:Vice President

ALPHARMA INC.

By: /s/ Jeffrey S. Campbell

Title:Vice President &

Interim Chief Financial Officer 

[CORPORATE SEAL]

 

ALPHARMA OPERATING CORPORATION

By: /s/ Jeffrey S. Campbell

Title:President

[CORPORATE SEAL]

ALPHARMA U.S. INC.

By: /s/ Christine Sacco

Title:Treasurer

 

[CORPORATE SEAL]

ALPHARMA EURO HOLDINGS INC.

By: /s/ Oystein Flingtorp

Title:President

[CORPORATE SEAL]

 

ALPHARMA (BERMUDA) INC.

By: /s/ Oystein Flingtorp

Title:President

[CORPORATE SEAL]

 

ALPHARMA USHP INC.

By: /s/ Oystein Flingtorp

Title:President

 

[CORPORATE SEAL]

 

ALPHARMA ANIMAL HEALTH COMPANY

 

By: /s/ Jeffrey S. Campbell

Title:Vice President & Treasurer

 

[CORPORATE SEAL]

 

MIKJAN CORPORATION

 

By: /s/ Jeffrey S. Campbell

Title:President

 

[CORPORATE SEAL]

ALPHARMA HOLDINGS INC.

By: /s/ Oystein Flingtorp

Title:President

[CORPORATE SEAL]

 

ALPHARMA PHARMACEUTICALS INC.

By: /s/ Oystein Flingtorp
Title:President

 

[CORPORATE SEAL]

 

PUREPAC PHARMACEUTICAL 

HOLDINGS, INC.

By: /s/ Jeffrey S. Campbell

Title:President

 

[CORPORATE SEAL]

 

ALPHARMA BRANDED PRODUCTS DIVISION INC.

By: /s/ Jeffrey S. Campbell

Title:Treasurer

[CORPORATE SEAL]

BARRE PARENT CORPORATION

By: /s/ Jeffrey S. Campbell

Title:President

[CORPORATE SEAL]

 

ALPHARMA INVESTMENT INC.

By: /s/ Jeffrey S. Campbell

Title:President

[CORPORATE SEAL]Nedenforstaende tekst skal betraktes som et eksempel til veiledning ved opprettelse av avtale

AGREEMENT ON THE SUCCESSION OF PENSION OBLIGATIONS

ALPHARMA INC, Company reg.no. 123 456 789, and Ingrid Wiik, Norwegian pers.no. 120245 49672, have today entered into the following agreement:

1. SUCCESSION OF RUNNING PENSION OBLIGATIONS

APHARMA INC. hereby transfers all pension obligations related to Ingrid Wiik as of January 1st 2007 to Vital Forsikring ASA, cf. offer of December 22 2006. With that, Vital Forsikring ASA assumes all administration and payment obligations to Ingrid Wiik from ALPHARMA INC. Ingrid Wiik consents to the succession.

2. TERMS OF PENSION SUCCESSION.

ALPHARMA INC. will immediately enter into a pension succession ("avløsningspensjon") agreement the ("Agreement") with Vital Forsikring ASA providing that yearly benefits will be paid in accordance with the agreed pension obligations in the agreement between ALPHARMA INC and Ingrid Wiik of 29 June 2006 and the original agreement of 26 October 2000, subject to the terms agreed to below. 

The pension is to be discontinued at 78 years. Any excess of the insurance coverage paid to Vital Forsikring ASA is non-refundable and will remain as property of Vital Forsikring ASA

Ingrid Wiik has read the terms of the Agreement and finds the terms thereunder acceptable.

 

Upon the fulfillment of this agreement, all pension rights and obligations between the parties are concluded.

3. DISPUTES

Disputes relating to the understanding of this Agreement are to be settled amicably. In the event of failure to reach an amicable resolution, unresolved matters are to be determined by way of arbitration pursuant to the Norwegian arbitration act of May 14th 2004.

Fort Lee, NJ             December 28, 2006__

Place                      Date

	 	 
	
__/s/ Jeffrey S. Campbell___
	
/s/ Ingrid Wiik

	
Alpharma Inc
	
Ingrid Wiik_

October 2, 2006

 

 

Mr. George Rose

4 Bouten Lane

Darien, Ct 06820

 

Dear George:

The following terms relate to a settlement of your employment at Alpharma Inc. and are offered for your consideration.  For the purposes of this letter, you are referred to as the "Executive" and Alpharma Inc., and each of its subsidiaries and affiliates, are referred to as the "Company".

 

	Termination of Employment.

Executive agrees to remain an employee of the Company until December 31, 2006 at which time Executive's employment shall terminate on the terms and conditions set forth in this letter.  Except as specifically modified by this letter, salary and fringe benefits shall remain as in effect on the date of this letter.  At any time prior to December 31, 2006, at the request of the Company, Executive agrees to relinquish the position of Executive Vice President, Human Resources and Communication and thereafter to continue to perform such tasks and assignments of an executive nature reasonably related to Executive's expertise as may be assigned from time to time by the Company's Chief Executive Officer.  In addition, the Company and the Executive may mutually agree, in writing, to cause the Executive's employment to terminate prior to December 31, 2006, in which case the terms of this agreement otherwise shall remain in full force and effect (that is, the Executive shall be treated for purposes of this agreement only as being an employee of the Company through December 31, 2006).  In addition, the Company specifically retains the right to limit the Executive's duties and responsibilities prior to December 31, 2006 (including, without limitation, to direct the Executive to no longer report to the Company's offices, or to report to the Company's offices on a more limited basis), and in such event the Company's obligations (including, without limitation, the obligations regarding compensation and benefits) and the Executive's obligations, all as are set forth herein, shall remain in full force and effect, and such limitation of duties and responsibilities shall in no event be treated as a termination of the Executive's employment.

	Bonus and Retention Payment

Unless Executive shall take action terminating his employment prior to December 31, 2006, Executive shall be (a) awarded a bonus under the Executive Incentive Compensation Plan based upon the objective criteria of the Plan as applied generally to other executives with respect to the 2006 fiscal year (without regard to whether the Executive serves as Executive Vice President, Human Resources and Communications for the full fiscal year) payable on or before March 15, 2007 and (b) paid the December 31, 2006 payment set forth under the heading Retention Payment as set forth in the December 12, 2005 agreement between the Executive and the Company on the date upon which the Waiver and Release attached hereto as Exhibit 1 has become non-revocable.  For avoidance of doubt, Executive shall not receive any further payments or benefits under said December 12, 2005 agreement.

	LTIP Awards.

All restricted stock and stock option awards which are not, by their terms, vested prior to December 31, 2006 (or any earlier date upon which Executive takes action to terminate his employment) shall terminate.  Any awards not so terminated shall continue to be governed by the terms of the applicable grant documents.

4.Performance Units

All performance units credited to the Executive and due to vest on or before December 31, 2006 will vest on December 31, 2006.

5.Pension Benefits

Pension benefits shall vest in accordance with the applicable Pension Plan and Offer Letter of July 17, 2001, through December 31, 2006.

6.Severance.

Unless Executive shall take action terminating his employment prior to December 31, 2006, he shall receive a lump sum payment equal to one year's Salary, as that term is defined under the Alpharma Inc. Severance Plan (Amended and Restated Effective January 1, 2005), payable on the date upon which the Waiver and Release attached hereto as Exhibit 1 has become non-revocable.  The payment in the preceding sentence shall be in lieu of any other severance rights or payments (including, without limitation, any rights under the Company's Severance or Change in Control Plans).  

7.Health Plan Benefits

The Company shall waive any COBRA premiums for the Executive under the Company's group health plan for 12 months following termination.

8.Executive's Release.

The Executive will execute a Waiver and Release on his last day of employment containing the substantive provisions attached hereto as Exhibit 1.  The Executive understands that all of the payments and benefits described herein are contingent upon him first executing (and not revoking) said Waiver and Release.  The Company agrees that the Executive's execution of the Waiver and Release shall not in any way limit the Company's obligations (if any) to indemnify the Executive for actions taken by him during the term of his employment with the Company.

9.Non-Disparagement

The Company agrees that it will not make any statements or comments disparaging the Executive.  The Executive agrees that he will not make any disparaging comments or statements that pertain to the Company.  

10.Confidentiality

Executive agrees not to disclose any confidential business information of the Company.

 

11.    Miscellaneous.

(a)  Executive agrees to fully execute his role until his departure from the Company, including the recruitment of his replacement and other Leadership Team positions.

(b) No other promise, inducement, threat, agreement or understanding of any kind or description has been made with Executive to cause him to enter into this letter agreement or the Waiver and Release.  In consideration of the execution and delivery of this letter agreement and the Waiver and Release by the Executive, the Company agrees to make all payments and to provide all benefits for the Executive which are provided for herein.

(c)The parties agree that this letter agreement shall in all respects be interpreted, enforced, and governed under the laws of New Jersey.  The language of all parts of this letter agreement shall in all cases be construed as a whole, according to the fair meaning and not strictly for or against any of the parties.

(d)Executive agrees not to make any public statement that would disparage the Company.

(e)Executive agrees that, if necessary, he will execute the appropriate documentation from the Company officially resigning as an officer of the Company.  Executive also agrees to assist and cooperate with the Company in any future litigation, investigations, or other legal claims where necessary and reasonable.   The Company will reimburse Executive for such reasonable expenses as Executive may incur in providing such assistance and cooperation upon his submission of appropriate documentation plus the amount of any income actually foregone by Executive as a result of any time spent in satisfaction of this obligation.

((f)Notwithstanding anything stated herein, in any employee benefit plan or program or otherwise, any payments hereunder that would be subject to the additional income tax imposed by Section 409A of the Internal Revenue Code, as amended, shall be deferred until the earliest date on which such payments may be made without the imposition of such tax, as determined in good faith by the Company.

(g)Prior to the cessation of his employment, Executive agrees to return to the Company all Company property within his possession or control including, but not limited to, identification cards, keys or card keys, cell phones, laptops or other computer equipment, and all Company documents and copies of Company documents with the exception of documents relating to his compensation and benefits at the Company.

(h)This letter agreement sets forth the entire agreement between the parties, and it supersedes, in its entirety, any other agreements between the parties.  

 

If you agree with the terms of this letter, please execute it as indicated below and return it to my attention on or before the end of business October 5, 2006.

 

Very truly yours,

/s/ Dean Mitchell

Dean Mitchell

President and Chief Executive 

Officer

Accepted and Agreed:

/s/ George Rose__

George Rose

 

Exhibit 1

The Executive shall execute a Waiver and Release containing the following substantive terms:

(a)Executive acknowledges that the payments outlined in the letter agreement dated October 2, 2006 (the "Letter Agreement") are in excess of what he would otherwise be entitled to receive and furthermore will not be received if he does not execute this Waiver and Release, and he hereby releases, on behalf of himself and his dependents, heirs, administrators, agents, executors, successors and assigns ("Executive Releasees") , the Company and each of its subsidiaries, their affiliates, and its or their officers, employees, agents, and directors and their various benefit committees, trustees, fiduciaries, plans and trusts  (collectively, the "Company Releasees") from and against any and all claims, demands, causes of action, damages, expenses and liabilities, whether now known or unknown, which he now has or may later have against the Company Releasees arising out of, or relating to, his employment with the Company or any affiliate, or the termination thereof, on or prior to the date of this Waiver and Release (an "Executive Released Claim").  This release includes by way of example, and without limitation,  any and all claims under Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the Reconstruction Era Civil Rights Act, as amended, the Family and Medical Leave Act of  1993, the Worker Adjustment and Retraining and Notification Act, the Employee Retirement Income Security Act of 1974, as amended, the Fair Labor Standards Act, the Age Discrimination in Employment Act, the United States Constitution, the Constitution of the State of New Jersey, the New Jersey Law Against Discrimination, the New Jersey Civil Rights Act, the New Jersey Conscientious Employee Protection Act, the New Jersey Family Leave Act, the New Jersey Wage and Hour Law,  and/or any and all other local, state or federal statute, law, order, rule, regulation or ordinance (including but not limited to labor, employment, benefit or wage matters), and/or any and all common law claims including, but not limited to, defamation claims, negligence claims, public policy claims, contract claims, implied contract claims, emotional distress, personal injury, constructive discharge, fraud/misrepresentation claims, fraudulent inducement claims, any other type of tort or contract claims, and any claim for any alleged wages, compensation or other benefits not provided to Executive pursuant to this Letter Agreement.  Anything to the contrary notwithstanding in any other agreement between the Executive and the Company, nothing herein shall release any Company Releasee from any claims or damages based on any right Executive has to enforce this Letter Agreement or arising after the date this Waiver and Release is executed by Executive, 

 (b)In signing this Waiver and Release, Executive represents that he has not filed any type of allegation, charge, lawsuit, or claim against the Company Releasees in or with any agency, court, or other entity, and Executive hereby covenants not to file any such claim or lawsuit or initiate any personal injunctive relief with respect to any matter arising out of or relating in any way to his employment with the Company and the termination of that employment (except for unemployment benefits).  Nothing contained in this Waiver and Release shall prohibit Executive from: (a) bringing any action to enforce the terms of the Letter Agreement; (b) filing a timely charge or complaint with the EEOC regarding the validity of this Waiver and Release; and (c) filing a timely charge or complaint with the EEOC or participating in any investigation or proceeding conducted by the EEOC regarding any claim of employment discrimination (although Executive has waived any right to personal recovery or personal injunctive relief in connection with any such charge or complaint).  Except to the extent prohibited by law, Executive further agrees that, in the event any Executive Released Claim is brought by a governmental agency against the Company, this Waiver and Release shall serve as a complete defense to such Executive Released Claim.

(c)    Executive is hereby advised that he should consult with an attorney before executing this Waiver and Release and he confirms that he has reviewed this Waiver and Release and the provisions of the Letter Agreement with counsel.  Executive understands that he has been provided 21 calendar days within which to review this Waiver and Release.  He also understands that he has 7 calendar days after the execution of this Waiver and Release to revoke his signature in writing, and that the provisions of this Waiver and Release will not become binding until that time.  Executive may revoke his signature of the Waiver and Release within seven (7) calendar days of signing it by delivering written notice of revocation to Dean Mitchell, President and Chief Executive Officer, Alpharma Inc., One Executive Drive, Fort Lee, New Jersey 07024. Executive further acknowledges that none of the provisions of the Letter Agreement will become binding, and that no payments will issue under the Letter Agreement until the expiration of the 7 calendar days from the date of his signature on this Waiver and Release providing that Executive does not revoke this Waiver and Release during such period of time.

(d)If any provision of this Waiver and Release is held to be illegal, void, or unenforceable, such provision shall be of no force or effect.  However, the illegality or unenforceability of such provision shall have no effect upon, and shall not impair the legality or enforceability of, any other provision of this Waiver and Release; provided, however, that upon any finding by a court of competent jurisdiction that any part of the Waiver and Release is illegal, void, or unenforceable, Executive agrees, at Company's request, to execute promptly a Waiver and Release of comparable scope that is legal and enforceable.

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