Document:

exv10w25

Exhibit 10.25

AGREEMENT

WHEREAS, Anthera Pharmaceuticals, Inc., a Delaware corporation having its principal place of
business at 25801 Industrial Blvd., Suite B, Hayward, California 94545, U.S.A. (the “Company”),
Shionogi & Co., Ltd., with a place of business at 1-8, Doshomachi 3-chome, Chuo-ku, Osaka, Japan
(“Shionogi”) and Eli Lilly and Company, an Indiana corporation having its principal place of
business at Lilly Corporate Center, Indianapolis, Indiana 46285, U.S.A. (“Eli Lilly”) entered into
the License Agreement dated July 31, 2006 concerning pharmaceutical products that inhibit
phospholipase (the “License Agreement”);

WHEREAS, Article 3, Section 3(a) of the License Agreement provides for a Milestone Payment by the
Company to Shionogi and Eli Lilly of $3,000,000 upon the initiation of the first Phase 3 clinical
trial of each Licensed Product in an Oral Formulation, fifty percent (50%) or $1,500,000 of which
is payable to Eli Lilly (the “Phase 3 Milestone Payment”);

WHEREAS, pursuant to that certain Agreement between the Company and Eli Lilly effective as of
September 15, 2009 (the “Amendment Agreement”), the Company and Eli Lilly (i) extended the date on
which the Phase 3 Milestone Payment associated with the commencement of Phase 3 clinical trials of
varespladib methyl (“A-002”) is due to Eli Lilly and (ii) increased the amount of the Phase 3
Milestone Payment due to Eli Lilly from $1,500,000 to $1,750,000 in consideration for such
extension;

WHEREAS the Company desires to issue, and Eli Lilly desires to receive, shares of the Company’s
common stock in satisfaction of the Company’s payment obligation with respect to such Milestone
Payment;

NOW, THEREFORE, in consideration for the premises and for other good and lawful consideration,
receipt of which is hereby acknowledged, the parties agree as follows.

     1. Terms. Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to such terms in the License Agreement.

     2. Agreement. Each of the Company and Eli Lilly agree that:

          (a) if the closing of the Company’s initial public offering
(the “IPO”) occurs prior to the applicable Payment Date (as such term is defined in the
Amendment Agreement) for the Phase 3 Milestone Payment, then (i) the Phase 3 Milestone Payment associated with the commencement of a
Phase 3 clinical trial of A-002 will be paid in the form of fully paid and non-assessable shares of the Company’s
Common Stock, free and clear of any restrictions on transfer other than those imposed by applicable securities laws (the “Payment Shares”); (ii) such Payment Shares will be
issued within ten (10) business days after the closing of the IPO; (iii) such Payment Shares shall be valued at the price per share at which
shares of the Company’s Common Stock are sold to the public in the IPO minus any per-share underwriting discounts, commissions or fees paid by the Company in the IPO; (iv) such Payment Shares
shall be issued on terms no less favorable to Eli Lilly than those terms received by investors
pursuant to that certain Stock Purchase Agreement dated September 25, 2009 among the Company and the
investors party thereto; and (v) upon the issuance by the Company of Payment Shares to Eli Lilly
having an aggregate value, calculated pursuant to subsection (iii) above, of $1,750,000, the
Company’s obligation in respect of the Phase 3 Milestone Payment associated with the commencement
of a Phase 3 clinical trial of A-002 shall be satisfied in full; and

          (b) In the event the closing of the IPO does not occur prior to the applicable
Payment Date, the Phase 3 Milestone Payment shall be made in cash as contemplated in the Amendment Agreement.

 

 

     3. Counterparts; Facsimiles. This Agreement may be executed in one or more counterparts, each
of which shall be an original and all of which shall constitute together the same document. For
purposes of this Agreement and any other document required to be delivered pursuant to this
Agreement, facsimiles of signatures shall be deemed to be original signatures. In addition, if any
of the parties sign facsimile copies of this Agreement, such copies shall be deemed originals.

     4. Further Acts. Each party agrees to execute, acknowledge and deliver such further
instruments, and to do all such other acts, as may be necessary or appropriate in order to carry
out the purposes and intent of this Agreement.

     5. Other terms and Conditions. All other remaining terms and conditions of the License
Agreement (which relate to Eli Lilly and the Company) are unchanged and remain in full force and
effect.

[Signature page follows.]

2

 

     In witness whereof, the parties have caused this Agreement to be executed by their duly
authorized officers as of the date set forth below.

	 	 	 	 	 
	Anthera Pharmaceuticals, Inc.	 	Eli Lilly and Company Incorporated
	 	 	 	 	 
	By:
	/s/ Paul Truex	 	By:
	/s/ Gino Santini
	Name:
	Paul Truex
	 	Name:
	Gino Santini 
	Title:
	
President & Chief Executive Officer
	 	Title:
	Sr. Vice President, Corp. Strategy & Business
Development
	Date:
	January 28, 2010  	 	Date:
	January 28, 2010 

3Exhibit 10.7

Exhibit 10.7

DIAMOND HILL INVESTMENT GROUP, INC.

AMENDED AND RESTATED

2006 PEFORMANCE-BASED COMPENSATION PLAN

“FORM OF”

NOTICE OF ELIGIBILITY AND PARTICIPATION AGREEMENT — [YEAR]

	 	 	 
	To:

	 	[                    ]
	 
	 	 
	From:

	 	Diamond Hill Investment Group, Inc. Compensation Committee
	 
	 	 
	Re:

	 	Diamond Hill Investment Group, Inc. Amended and Restated 2006
Performance-Based Compensation Plan

The Compensation Committee of the board of directors of Diamond Hill Investment Group, Inc.
(“Company”) has designated you as a Participant in the Diamond Hill Investment Group, Inc. Amended
and Restated 2006 Performance-Based Compensation Plan (“Plan”) for the [YEAR] Performance Cycle.
Any capitalized term not otherwise defined herein shall have the same meaning as in the Plan.

The Plan is designed [1] to provide incentive compensation to our most senior officers and [2] to
ensure that the Company may deduct that incentive compensation when calculating its taxable income.
To achieve these objectives, both you, as a Participant, and the Company must comply with
procedures imposed by the Internal Revenue Service (“IRS”). This Notice of Eligibility and
Participation Agreement (“Notice”) describes those procedures. Please read this Notice carefully
to ensure that you completely understand what must happen if you are to earn incentive compensation
for the [YEAR] Performance Cycle and when this compensation, if earned, will be paid.

Note: As a condition of eligibility, you must return a signed copy of this form (see Section 3.00)
to the Company’s Compensation Committee at the address shown in Section 3.00 no later than March
31, [YEAR].

1.00 Your incentive compensation will be paid if certain conditions are met . . .

The Plan (and the IRS) require that the Compensation Committee establish:

	 	•	 	The conditions that must be met if you are to receive incentive compensation under
the Plan (“Performance Criteria”);
	 
	 	•	 	The period over which the Performance Criteria are to be met (“Performance Cycle”);
and
	 
	 	•	 	The amount you may receive if the Performance Criteria are met.

 

 

 

1.01 Your incentive compensation depends on the extent to which the Company meets certain financial
goals

Your incentive compensation for the [YEAR] Performance Cycle will be based on a bonus pool
established under Section 1.01[1] and the asset weighted performance of the strategies described in
Section 1.01[2].

[1] A bonus pool will be established . . .

A bonus pool will be established from which your incentive compensation (and incentive compensation
payable to other Participants) will be paid. The amount of this pool will depend on the Company’s
operating profit and revenues, excluding the results of Beacon Hill Fund Services and subsidiary.
The following is a description of the operation of this mechanism:

[                    ]

The bonus pool formula is:

[                    ]

[2] If the criteria listed in this section are met, your incentive compensation will be as
large as [ ] percent of the
bonus pool . . .

If the operating profit margin of the company is:

	 	•	 	At or above any OPM in the table above you will receive incentive compensation
equal to as much as [ ] percent of the incentive pool based on the Company’s revenue
(see Section 1.01 [1]);
	 
	 	•	 	At or above [ ] percent but less than any OPM in the table above you will receive
incentive compensation equal to as much as a calculated percent of the entire
incentive pool determined through linear interpolation with 0% as the floor, if OPM is
[ ]% or less, and [ ]% as the ceiling if OPM is equal to the target listed in the
table above based on the Company’s revenue. (see Section 1.01 [1]);
	 
	 	•	 	At or below [ ]% you will receive no incentive compensation under this plan;

1.02 There are limits on your incentive compensation . . .

The Plan imposes some limits on your incentive compensation. These are:

	 	•	 	You may not receive more than $5,000,000 under the Plan for any Performance Cycle;
	 
	 	•	 	Your incentive compensation also will be reduced, if necessary, to comply with any
law or regulatory limitation; and
	 
	 	•	 	Although it is not expected to do so, the Compensation Committee reserves the right
to reduce your incentive compensation below the amount produced after applying the
formulae described in this section.

 

 

 

2.00 There are a few other rules . . .

The Plan imposes a few additional rules that may affect your incentive compensation:

	 	•	 	Normally, you will not receive any incentive compensation unless you are actively
employed throughout the Performance Cycle and also are employed on the date the
incentive compensation is to be paid. However, your full incentive compensation will
be paid if you terminate employment because you die, Retire or become Disabled after
the end of the Performance Cycle and before the date the incentive compensation is to
be paid.
	 
	 	•	 	If you die or become Disabled during a Performance Cycle, you may receive Plan
incentive compensation but only to the extent the Performance Criteria described in
Section 1.01[2] are met at the end of the Performance Cycle. In this case, you (or
your beneficiary) will receive the amount described in Section 1.00 reduced to reflect
the number of whole months that you worked during the Performance Cycle (e.g., if you
worked only 50 percent of the Performance Cycle, you (or your beneficiary) would
receive 50 percent of the amount described in Section 1.00).
	 
	 	•	 	If you terminate employment before the end of the Performance Cycle for any reason
other than death or Disability, you will not receive any incentive compensation for
the Performance Cycle, even if the Performance Criteria described in Section 1.01[2]
are met.
	 
	 	•	 	If a Change in Control occurs during a Performance Cycle, you will receive a
portion of the maximum amount that you could have earned during the Performance Cycle
in which the Change in Control occurs, reduced to reflect the number of whole months
between the beginning of the Performance Cycle during which the Change in Control
occurs and the date of the Change in Control and further reduced, if necessary, to
avoid “excess parachute” penalties. This amount will be paid whether or not the
Performance Criteria established for that Performance Cycle are met.
	 
	 	•	 	As of the end of the Performance Cycle, the Compensation Committee will review the
extent to which Performance Criteria have been met and whether (and how much)
incentive compensation is due under the Plan.
	 
	 	•	 	Any incentive compensation you earn will be paid in a lump sum no later than the
15th day of the third month beginning after the end of the calendar year or
the Company’s fiscal year (whichever is later) during which the Performance Cycle
ends.

 

 

 

	 	•	 	You may designate a beneficiary to receive any Plan incentive compensation that
becomes due after your death. This can be done by completing the attached beneficiary
designation form. If you do not complete this form, any Plan incentive compensation
due at your death will be paid to your surviving spouse or, if you leave no surviving
spouse, to your estate.
	 
	 	•	 	Also, by accepting participation in the Plan, you agree to a noncompetition
covenant under which you agree not to compete with the Company for a period of one
year after you terminate employment. The terms of that agreement are specified in the
Plan which you should read carefully.
	 
	 	•	 	If the terms of this Notice and the Plan conflict, the terms of the Plan will
govern.

3.00 You must sign this form . . .

Note: You will not receive any Plan incentive compensation unless you return a signed copy of this
Notice to the Compensation Committee, c/o Mr. Donald Shackelford at 325 John H. McConnell
Boulevard, Suite 200, Columbus, Ohio 43215 no later than March 31, [YEAR]

By signing below, I acknowledge that I understand the terms of the Diamond Hill Investment Group,
Inc. 2006 Performance Based Compensation Plan and the conditions that must be met before I can
receive any incentive compensation from that plan.

EMPLOYEE:

	 	 	 
	 

	 	 
	(Name)

	 	(Date)
	 
	 	 
	RECEIVED BY:
	 	 
	 
	 	 
	 

	 	 
	(Name)

	 	(Date)

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