Document:

Exhibit 10.1

 

	
 
    	

    
	
 
    	
 
    
	
 

April 24, 2015
    	
207 Goode Ave, Ste   500
    
	
Glendale,   California 91203
    
	
Phone 626 304-2000
    
	
Fax 626 792-7312
    
			

 

Georges Gravanis

[Address]

[Address]

[Address]

 

Dear Georges:

 

I am very pleased to offer you the position of President, Materials Group, reporting directly to me. This is an Executive, Level 2 position and is effective May 1, 2015.

 

It is anticipated that you will remain on assignment as an Expatriate (France to Hong Kong) for approximately one year per the assignment extension letter you will receive in the next few days. Upon the end of your current assignment, it is our intention to transition you to a local package in either Europe or the United States.  A local hire letter will be presented to you closer to the end of your current assignment.

 

Specific details of our job offer are as follows:

 

Base Salary:  Your annualized rate of pay will be 470,000 EUROS.  Your next salary review will be April 1, 2016.  Subsequent salary reviews will be conducted on April 1st of each year, or on another date designated by the Company for a given year.

 

Bonus:  You will be eligible to be considered under Avery Dennison’s annual incentive plan (“AIP”) to participate at a 60% of base salary opportunity level prorated effective May 1, 2015, subject to applicable withholdings.  The Annual Incentive Plan (AIP), including eligibility criteria, may change at any time, with or without notice, in accordance with applicable law or, if permissible under the law, at the discretion of the Company.

 

Long-Term Incentive (LTI) Opportunity:  Under the Company’s executive incentive compensation program you will be eligible to be considered for an annualized long-term incentive award with a value opportunity equivalent to approximately 180% of your base salary effective January 1, 2016.  As a Level 2 Executive, your Equity Holding Requirement is either 3X your base salary, or 27,000 LTI units (please refer to the AD Stock Holding Policy for more details).  The long term incentive program, including eligibility criteria, may be amended, suspended or terminated at any time, with or without notice, in accordance with applicable law and the applicable plan terms.

 

You will receive the following special equity award on June 1, 2015.

 

-                   A one-time grant with a target value of $750,000 USD, converted to RSUs based on the fair market value as of the grant date, with a 4-year ratable vesting schedule.

 

 

All other aspects of your current assignment will remain unchanged.

 

In your new role, you will be considered a Section 16 officer under U.S. securities laws.  As a result, you will have obligations to report any transactions you make with respect to Company stock within two business days of the transaction.  In addition to these reporting requirements, you can be subject to civil liability for certain “short-swing” transactions.  You can discuss these matters with the Law Department.

 

Please sign and date this offer letter below and return it to LeeAnn Prussak in Corporate Human Resources.

 

Sincerely,

 

	
/s/ Mitch   Butier
    	
 
    
	
 
    	
 
    
	
Mitch   Butier
    	
 
    
	
President   and COO
    	
 
    

 

 

cc: LeeAnn Prussak

Jessica Del Rio

 

 

 

Accepted by:  /s/ Georges Gravanis

 

 

Date:  24 April 2015MDCO EX 10.1 03.31.2015

Exhibit 10.1
	
				
	Confidential Materials omitted and filed separately with the
Securities and Exchange Commission. Double asterisks denote omissions.

SEVENTH AMENDMENT TO
SECOND AMENDED AND RESTATED DISTRIBUTION AGREEMENT

This Seventh Amendment to Second Amended and Restated Distribution Agreement (this “Amendment”) is between The Medicines Company, a Delaware corporation with offices at 8 Sylvan Way, Parsippany, NJ 07054 (“MDCO”), and Integrated Commercialization Solutions, Inc., a California corporation with offices at 3101 Gaylord Parkway, Frisco, TX 75034 (“Distributor”).  This Amendment is effective as of March 5,  2015  (the “Amendment Effective Date”).  MDCO and Distributor shall, at times throughout this Amendment, be referred to individually as a “Party” and collectively as the “Parties”. 

RECITALS

		
	A.
	MDCO and Distributor are parties to a Second Amended and Restated Distribution Agreement effective as of October 1, 2010, as amended by the First Amendment dated July 1, 2011, the Second Amendment dated September 1, 2011, the Third Amendment dated April 23, 2012, the Fourth Amendment dated April 29, 2013, the Fifth Amendment dated September 12, 2013 and the Sixth Amendment dated March 1, 2014 (as amended, the “Agreement”);

		
	B.
	Under the Agreement, among other things, MDCO engaged Distributor to perform distribution services for certain of MDCO’s pharmaceutical products; and

		
	C.
	The Parties now wish to amend the Agreement in certain respects.

AMENDMENT

NOW THEREFORE, the parties agree as follows:

		
	1.
	Defined Terms.  Capitalized terms in this Amendment that are not defined in this Amendment have the meanings given to them in the Agreement.  If there is any conflict between the Agreement and any provision of this Amendment, this Amendment will control.

		
	2.
	Exhibit D.  The Parties agree that Exhibit D to the Agreement is hereby deleted in its entirety and replaced with the attached Revised Exhibit D.

		
	3.
	No Other Changes.  Except as otherwise provided in this Amendment, the terms and conditions of the Agreement will continue in full force, nothing in the Amendment modifies any term or provision in the Agreement or the Continuing Guaranty.

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the Amendment Effective Date.

	
				
	INTEGRATED COMMERCIALIZATION
SOLUTIONS, INC.
	THE MEDICINES COMPANY

	By:
	/s/ Peter Belden
	By:
	/s/  Tanya Quinn

	Name:
	Peter Belden
	Name:
	Tanya Quinn

	Title:
	President
	Title:
	VP, Global Supply Chain

Revised EXHIBIT D
Fee Schedule effective March 5, 2015 (except as noted below)

Services                                        Fee

A.    Marketing, Sales, Customer Service and Distribution

Fees include the following                        Percentage of WAC                                                 (see below)
		
	•
	Warehousing Management and Inventory Administration

		
	•
	Customer Service / Order Entry

		
	•
	Marketing and Distribution Services

		
	•
	Invoicing and Accounts Receivable Management 

		
	•
	Direct Account Set Up

		
	•
	Information Technology

Wholesaler Stocking                            Percent of WAC

Angiomax, Cangrelor*, Oritavancin, Minocin IV                    [**]

Generics (G10), Argatroban, Recothrom, Cleviprex, Raplixa*,            [**]
Preveleak

Drop-Ship/Direct
    
Angiomax, Cangrelor*, Oritavancin, Minocin IV                 [**]        

Generics (G10), Argatroban, Recothrom, Cleviprex, Raplixa*,            [**]    
Preveleak

    
* Product under regulatory review.
    

B.     Contract Pricing (provided in Section 5.4)

MDCO will reimburse Distributor monthly for any MDCO Contract sales administered as a direct price (anything less than current WAC of the product) at time of sale.  Reimbursement amount to Distributor is current WAC at time of contract sales minus contract price.

Any direct pricing will be provided by MDCO to Distributor.

C.     Pricing Actions

Distributor shall realize no benefit or penalty from pricing actions.  In the event of a price increase on the Products, Distributor shall deduct the difference in value of the Products held in Distributor inventory held on the day prior to the price increase.  For example, the day prior to the price increase the value of the products is $1,000,000 and a 6% price increase raises the value of the same inventory to $1,060,000 on the same number of units of Products.  Distributor shall deduct the difference, $60,000, from the next Service Fee.

In the event of a price decrease on the Products, Distributor shall add the difference in value of the Products held on the Distributor inventory held on the day prior to the price decrease.  For example, the day prior to the price decrease the value of the products is $1,000,000 and a 6% price decrease lowers the value of the same inventory to $940,000 on the same number of units of Products.  Distributor shall add the difference, $60,000, to the next Service Fee.

D.     Storage Fees

Effective October 1, 2014, Distributor will charge a monthly storage fee of $[**].  On a quarterly basis this fee will go through a true-up process against actual storage fees incurred.

E.     Reimbursement [**]

MDCO will reimburse Distributor for any [**] product in the event that the manufacturer of [**] product [**].MDCO EX 10.2 03.31.2015

Exhibit 10.2

The Medicines Company - Board Compensation Program

Our compensation program for non-employee directors consists of a cash component and an equity component. The cash component is based on a retainer based approach, in which board members receive a larger retainer and only get paid per meeting if the board or its individual committees meet more than ten times in a calendar year. The equity component includes stock option grant awards and restricted stock awards. The compensation committee designs the cash component by considering as a target the 50th percentile of cash compensation paid to directors at companies included in the data from the compensation committee's consultant, Radford, an Aon Hewitt company, and the board's equity compensation to be at a value at or near the 75th percentile of the value of equity compensation paid to directors at companies included in the data from Radford. Each of these components is shown in the tables below. 

Cash Compensation

The following table describes the cash compensation for each non-employee director. The cash compensation is payable on a quarterly basis.
	
				
	Type of Fee
	 
	Amount of Compensation
	 

	Annual retainer for board members
	 
	$55,000
	 

	Additional annual retainer for lead director
	 
	$10,000
	 

	Compensation for each board meeting attended in excess of ten meetings
	 
	$3,000 
	 

	 
	 
	 
	 

	Additional annual retainer for committee members:
	 
	 
	 

	Audit committee chair
	 
	$25,000
	 

	Other audit committee members
	 
	$12,500
	 

	Compensation committee chair
	 
	$20,000
	 

	Other compensation committee member
	 
	$10,000
	 

	Nominating and corporate governance committee chair
	 
	$15,000
	 

	Other nominating and corporate governance committee   
member
	 
	$7,500
	 

	Compensation for each committee meeting attended in excess of ten meetings, per committee
	 
	$1,500
	 

For the purposes of the directors compensation program, to determine whether a board member or committee member attended in excess of ten meetings during the year, the number of meetings attended in person and by telephone are aggregated. Directors are reimbursed for travel and out-of-pocket expenses in connection with their attendance at board meetings.

Equity Compensation 

Each non-employee director is eligible to receive stock options and shares of restricted stock under our 2013 stock incentive plan. The table below describes the initial and annual equity compensation for each non-employee director and the additional equity compensation to our lead director under our directors compensation program:

	
							
	Type of Grant
	 
	Awards under Program
	 
	Grant Date
	 
	Vesting Schedule

	Initial equity grant
	 
	$320,000 value of options
	 
	The date the director is initially elected to the board
	 
	Stock options vest in one installment 36 months after the grant date 

	 
	 
	 
	 
	 
	 
	 

	Annual equity grant
	 
	$255,000 equity value split equally between stock options and restricted shares(1)
	 
	The date of the annual meeting of stockholders
	 
	Stock options and restricted stock vest in one installment 12 months after the grant date

	 
	 
	 
	 
	 
	 
	 

	Additional annual equity grant to our lead director
	 
	Option to purchase 5,000 shares of common stock
	 
	The date of the annual meeting of stockholders
	 
	Stock options vest in one installment 12 months after the grant date

	 
	 
	 
	 
	 
	 
	 

		
	(1) 
	When splitting the equity value between stock options and restricted shares, restricted shares are valued at 2.5 times the value of a share underlying a stock option.

These options have an exercise price equal to the closing price of our common stock on the NASDAQ Global Select Market on the date of grant and have a ten-year term. If a director ceases to be a director, all vested options will be exercisable at any time prior to the first anniversary of the date the director ceases to be a director or for the remaining term of the option, if less, and all unvested options will be forfeited. If an independent director in good standing voluntarily retires and has completed at least one full term of service (three years), any unvested stock options and restricted stock that were granted to the director as an annual award would vest immediately following the director’s retirement and all stock options granted to the director as an annual award would remain exercisable until the expiration of the option’s original 10-year term.

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