Document:

Unassociated Document

 

TAX SHARING AGREEMENT

THIS TAX SHARING AGREEMENT (the “Agreement”), effective as of October 1, 2011 (the “Effective Date”), is entered into between JUBILANT LIFE SCIENCES HOLDINGS, INC., a Delaware corporation (“Parent”), and CADISTA HOLDINGS, INC., a Delaware corporation, (“Subsidiary”).

 

R E C I T A L S

A.           Parent is the common parent corporation of an affiliated group of corporations within the meaning of Section 1504(a) of the Internal Revenue Code of 1986, as amended (the “Code”), that has elected to file consolidated federal income tax returns, and Subsidiary is a member of such group.

B.           Parent and Subsidiary desire to set forth in the Agreement their agreement as to certain matters relating to the inclusion of the Subsidiary Consolidated Group in the Parent Consolidated Group, including the allocation of tax liabilities for years in which Subsidiary is so included, and certain other matters relating to taxes.

The parties agree as follows:

1.           DEFINITIONS.

“Adjustment” shall have the meaning set forth in Section 8 of this Agreement.

“Agreement Year” shall have the meaning set forth in Section 2 of this Agreement.

“Parent” shall have the meaning set forth in the Preamble to this Agreement.

“Parent Consolidated Group” shall mean any affiliated group of corporations electing to file consolidated federal income tax returns of which Parent is a member.

“Parent Consolidated Return” shall have the meaning set forth in Section 2 of this Agreement.

“Code” shall have the meaning set forth in the Recitals.

“Determination” shall mean a settlement, compromise, or other agreement with the IRS or the relevant state, local or foreign taxing authority, whether contained in an Internal Revenue Service Form 870 or other comparable form, or otherwise, or such procedurally later event, such as a closing agreement with the IRS or the relevant state, local or foreign taxing authority, an agreement contained in an IRS Form 870-D or other comparable form, an agreement that constitutes a determination under Section 1313(a)(4) of the Code, a deficiency notice with respect to which the period for filing a petition with the Tax Court or the relevant state, local or foreign tribunal has expired or a decision of any court of competent jurisdiction that is not subject to appeal or as to which the time for appeal has expired.

  

  

  

 

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“Estimated Tax Payments” shall have the meaning set forth in Section 4 of this Agreement.

“IRS” shall mean the Internal Revenue Service.

“Group” shall mean either the Parent Group or the Subsidiary Consolidated Group.

“Parent Group” shall mean the affiliated group of corporations (including any predecessors and successors thereto) within the meaning of Section 1504(a) of the Code, of which Parent is the common parent, excluding any corporation that is a member of the Subsidiary Consolidated Group.

“Post-Consolidation Year” shall have the meaning set forth in Section 5 of this Agreement.

“Pro Forma Subsidiary Return” shall have the meaning set forth in Section 3 of this Agreement.

“Records” shall have the meaning set forth in Section 8 of this Agreement.

“Regulations” shall mean the Treasury regulations promulgated under the Code.

“Subsidiary” shall have the meaning set forth in the Preamble to this Agreement.

“Subsidiary Consolidated Group” shall mean Subsidiary or Subsidiary and the affiliated group of corporations (including any predecessors and successors thereto) within the meaning of Section 1504(a) of the Code, of which Subsidiary would be the common parent if it were not included in the Parent Consolidated Group.

“Subsidiary Return Items” shall have the meaning set forth in Section 8 of this Agreement.

“Subsidiary Tax Package” shall have the meaning set forth in Section 7 of this Agreement.

  

  

  

 

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2.           FILING OF CONSOLIDATED RETURNS AND PAYMENT OF CONSOLIDATED TAX LIABILITY

For all taxable years in which Parent files consolidated federal income tax returns (any such return of the Parent Consolidated Group for any taxable year, a “Parent Consolidated Return”) and is entitled to include the Subsidiary Consolidated Group in such returns under Sections 1501-1504, or successor provisions, of the Code, Parent shall include the Subsidiary Consolidated Group in the consolidated federal income tax returns it files as the common parent corporation of the Parent Consolidated Group.  Parent, Subsidiary, and the other members of the Parent Consolidated Group shall file any and all consents, elections or other documents and take any other actions necessary or appropriate to effect the filing of such federal income tax returns.  For all taxable years in which the Subsidiary Consolidated Group is included in the Parent Consolidated Group, Parent shall pay the entire federal income tax liability of the Parent Consolidated Group and shall indemnify and hold harmless Subsidiary against any such liability; provided, however, that Subsidiary shall make payments to Parent or receive payments from  Parent as provided in the Agreement for any taxable year (which term shall throughout the Agreement include any short taxable year) during which the Subsidiary Consolidated Group is included in the Parent Consolidated Group (an “Agreement Year”).

3.           PRO FORMA RETURNS

For each Agreement Year, Parent shall prepare a pro forma federal income tax return for the Subsidiary Consolidated Group (a “Pro Forma Subsidiary Return”) and the Parent Group (a “Pro Forma Parent Return”).  The Pro Forma Subsidiary Return shall be prepared based on the corresponding Subsidiary Tax Package provided pursuant to Section 7 hereof, and shall include all related schedules, and a copy of such Pro Forma Subsidiary Return shall be delivered to Subsidiary at least five business days prior to the due date for the Parent Consolidated Return.  Except as otherwise provided herein, the Pro Forma Subsidiary Return  and Pro Forma Parent Return for each Agreement Year shall be prepared as if Subsidiary filed a consolidated return on behalf of the Subsidiary Consolidated Group for such taxable year, and no member of one Group was a member of the other Group.  The Pro Forma Return for each Group shall reflect any carryovers of net operating losses, net capital losses, excess tax credits, or other tax attributes from prior Pro Forma Returns for such Group which could have been utilized by such Group if the Subsidiary Consolidated Group had never been included in the Parent Consolidated Group and all Pro Forma Returns for the relevant Group had been actual returns.  The Pro Forma Return for each Group shall be prepared in a manner that reflects all elections, positions, and methods used in the Parent Consolidated Return that must be applied on a consolidated basis and otherwise the Pro Forma Parent Return shall be prepared in a manner consistent with the Parent Consolidated Return and the Pro Forma Subsidiary Return shall be prepared in a manner consistent with past practices of the Subsidiary Consolidated Group.  The provisions of the Code that require consolidated computations, such as Sections 861, 1201-1212 and 1231, shall be applied separately to each Group as if such Group and the other Group were separate affiliated groups, except that: (a) the Pro Forma Subsidiary Return prepared for the last taxable year, or portion thereof, during which the Subsidiary Consolidated Group is included in the Parent Consolidated Return shall also include any income, gains or losses of the members of the Subsidiary Consolidated Group on transactions within the Subsidiary Consolidated Group that must be taken into account pursuant to Section 1.1502-13 of the Regulations and any income of the members of the Subsidiary Consolidated Group that must be taken into account pursuant to Section 1.1502-19 of the Regulations and, in each case, reflected on the Parent Consolidated Return when the Subsidiary Consolidated Group ceases to be included in the Parent Consolidated Return; and (b) transactions between the Subsidiary Consolidated Group, on the one hand, and any member of the Parent Group, on the other hand, shall not be taken into account until the first taxable year in which such transaction is required to be taken into account pursuant to Regulations promulgated under Section 1502 .  For purposes of the Agreement, all determinations made as if the Subsidiary Consolidated Group had never been included in the Parent Consolidated Group and as if all Pro Forma Subsidiary Returns were actual returns shall reflect any actual short taxable years resulting from the Subsidiary Consolidated Group joining or leaving the Parent Consolidated Group.

  

  

  

 

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4.           TAX PAYMENTS

(a)           Estimated Tax Payments.

(i)           For each Agreement Year, Subsidiary shall make periodic payments (“Estimated Tax Payments”) to Parent in such amounts as determined by Parent (in good faith and in accordance with the principles of Section 3 hereof) based upon the estimated tax payments that would be due from the Subsidiary Consolidated Group if it were not included in the Parent Consolidated Group no later than the dates on which payments of estimated tax would be due from the Subsidiary Consolidated Group if it were not included in the Parent Consolidated Group.  Parent shall notify Subsidiary of any amounts due from Subsidiary to Parent pursuant to this Section 4(a)(i) no later than 5 business days prior to the date such payments would be due from the Subsidiary Consolidated Group if it were not included in the Parent Consolidated Group and any such payments shall not be considered due until the later of the due date described above or the fifth day from the notice from Parent.

  

  

  

 

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(ii)            For each Agreement Year, Parent shall make Estimated Tax Payments to Subsidiary in an amount equal to the excess, if any of (x) the estimated tax payments that would be due from the Parent Group for the relevant period if the Parent Group filed its own consolidated tax return, determined by Parent in good faith and in accordance with the principles of Section 3 hereof, over (y) the actual estimated tax payments due from the Parent Consolidated Group for such period, no later than the dates on which payments of estimated tax are due from the Parent Consolidated Group.

(b)           Payments Based on Pro Forma Returns.

(i)           Payments Based on Pro Forma Subsidiary Return.  Subsidiary shall pay to Parent no later than the date on which a Parent Consolidated Return for any Agreement Year is filed an amount equal to the excess of (x) the sum of (A) the federal income tax liability shown on the corresponding Pro Forma Subsidiary Return prepared for the Agreement Year, plus (B) an amount equal to the additions to tax, if any (under Section 6655 of the Code, or otherwise) that would have been imposed on the Subsidiary Consolidated Group (treating the amount due to Parent under (A) above as its federal income tax liability and treating any Estimated Tax Payments to Parent pursuant to clause (a) as estimated payments for purposes of  Section 6655 of the Code) as a result of the inaccuracy of any information provided by Subsidiary to Parent pursuant to Section 7 hereof or from the failure of Subsidiary to provide any requested information, up to the total amount of the additions to tax, if any (under Section 6655 of the Code, or otherwise) that are imposed on the Parent Consolidated Group for such Agreement Year plus (C) any interest that would be due under the Code if the Estimated Tax Payments were actual payments of tax, over (y) the aggregate amount of Estimated Tax Payments paid by Subsidiary to Parent, during such year.  If the aggregate amount of Subsidiary's Estimated Tax Payments to Parent for any Agreement Year exceed the amount of its liability, as determined under clause (x) of the preceding sentence, Parent shall refund such excess, plus interest (accruing from each date with respect to which there was an overpayment of Estimated Tax Payments) to Subsidiary no later than the fifth business day following the filing of the Parent Consolidated Return. Parent shall notify Subsidiary of any amounts due from Subsidiary to Parent pursuant to this Section 4(b) no later than 5 business days prior to the date such payments are due and any such payment due from Subsidiary to Parent shall not be considered due until the later of the due date described above or the fifth day from the notice from Parent.

  

  

  

 

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(ii)           Payments Based on Pro Forma Parent Returns. Parent shall pay to Subsidiary no later than the date on which a Parent Consolidated Return for any Agreement Year is filed an amount equal to the excess of (x) (A) the federal income tax liability shown on the corresponding Pro Forma Parent Return prepared for the Agreement Year, plus (B) any interest that would be due under the Code if the Estimated Tax Payments were actual payments of tax, minus (C) the actual federal income tax liability for the Parent Consolidated Group for such taxable year over (y) the aggregate amount of  Estimated Tax Payments paid by Parent to Subsidiary during such year.  If the aggregate amount of Parent’s Estimated Tax Payments to Subsidiary for any Agreement Year exceed the amount of its liability, as determined under clause (x) of the preceding sentence, Subsidiary shall refund such excess to Parent, plus interest (accruing from each date with respect to which there was an overpayment of Estimated Tax Payments) no later than the fifth business day following the filing of the Parent Consolidated Return.

(c)           For purposes of the Agreement, the term “federal income tax liability” includes the tax imposed by Sections 11, 55 and 59A of the Code, or any successor provisions to such Sections.

5.           PAYMENTS FOR TAXABLE YEARS IN THE EVENT OF DECONSOLIDATION

(a)           Payments By Subsidiary To Parent.  If for any taxable year after the Subsidiary Consolidated Group ceases to be included in the Parent Consolidated Group (a “Post-Consolidation Year”), (i) the federal income tax liability of the Subsidiary Consolidated Group is less than the federal income tax liability that would have been imposed with respect to the same period if the Subsidiary Consolidated Group had not been included in the Parent Consolidated Group for any Agreement Year and all Pro Forma Subsidiary Returns had been actual returns for such years, or (ii) the federal income tax liability of the Parent Consolidated Group is greater than the federal income tax liability that would have been imposed with respect to the same period if the Subsidiary Consolidated Group had not been included in the Parent Consolidated Group for any Agreement Year and all Pro Forma Subsidiary Returns had been actual returns for such years, then, to the extent that Subsidiary has not already made a payment to Parent for utilization of the tax attributes that gave rise to the decrease or increase described in (i) or (ii), Subsidiary shall pay to Parent an amount equal to such decrease or increase within 10 days of the filing of Subsidiary Post-Consolidation Year return.  In the event that there is both a decrease and an increase described in (i) and (ii), respectively, of the previous sentence for any Post-Consolidation Year, then Subsidiary shall make a payment to Parent in an amount equal to the sum of such decrease and increase, unless such decrease and increase (or any portion thereof) result from utilization of the same tax attribute(s), in which case the amount of the payment will be reduced accordingly.

  

  

  

 

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(b)           Payments By Parent To Subsidiary.  If for any Post-Consolidation Year (i) the federal income tax liability of the Subsidiary Consolidated Group is greater than the federal income tax liability that would have been imposed with respect to the same period if the Subsidiary Consolidated Group had not been included in the Parent Consolidated Group for any Agreement Year and all Pro Forma Subsidiary Returns had been actual returns for such years, or (ii) the federal income tax liability of the Parent Consolidated Group is less than the federal income tax liability that would have been imposed with respect to the same period if the Subsidiary Consolidated Group had not been included in the Parent Consolidated Group for any Agreement Year and all Pro Forma Subsidiary Returns had been actual returns for such years, then, to the extent that Parent has not already made a payment to Subsidiary for utilization of the tax attributes that gave rise to the increase or decrease described in (i) or (ii),  Parent shall pay to Subsidiary an amount equal to such increase or decrease within 10 days of notification by Subsidiary to Parent of the filing of Subsidiary Post-Consolidation Year return.  In the event that there is both an increase and a decrease described in (i) and (ii), respectively, of the previous sentence for any Post-Consolidation Year, then Parent shall make a payment to Subsidiary in an amount equal to the sum of such increase and decrease, unless such increase and decrease (or any portion thereof) result from utilization of the same tax attribute(s), in which case the amount of the payment will be reduced accordingly.

(c)           Documentation.  Prior to the payment of any amounts due pursuant to this Section 5, the parties shall exchange such information and documentation as is reasonably satisfactory to each of them in order to substantiate the amounts due pursuant to this Section 5.  Any disputes as to such amounts and documentation which cannot be resolved prior to the date a payment is due shall be referred to an independent accounting firm whose fees shall paid one half by Subsidiary and one half by Parent.

(d)           Post-Consolidation Year Carrybacks.

(i)           If a Subsidiary Consolidated Group federal income tax return for any Post-Consolidation Year reflects a net operating loss, net capital loss, excess tax credits, or any other tax attribute, whether or not Subsidiary waives the right to carryback any such attribute to a Parent Consolidated Return, no payment with respect to such carrybacks shall be due from Parent.

(ii)           If a Parent Consolidated Return for any Post-Consolidation Year reflects a net operating loss, net capital loss, excess tax credits, or any other tax attribute, such attribute may be carried back to Parent Consolidated Return for an Agreement Year, and Parent shall be entitled to retain (without any obligation to reimburse Subsidiary) the full amount of any refund received in connection therewith.  In the event that Subsidiary (or any other member of the Subsidiary Consolidated Group) receives any refund with respect to an Agreement Year issued in connection with a carryback of a Parent Consolidated Group tax attribute from a Post-Consolidation Year to a Parent Consolidated Return for an Agreement Year, Subsidiary shall promptly pay the full amount of such refund to Parent.

  

  

  

 

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(e)           No Duplication of Payment.  Notwithstanding anything to the contrary herein, neither Section 5(a) nor Section 5(b) shall require Subsidiary or Parent, as the case may be, to make any payment pursuant to such section to the extent that the payment is attributable to a tax attribute for which payment has previously been made pursuant to Section 4.

6.           CARRYBACK OF TAX ATTRIBUTES.  To the extent that Parent elects to carryback a net operating loss, net capital loss, excess tax credits or any other tax attribute of the Subsidiary Consolidated Group or the Parent Group in any Agreement Year to a Parent Consolidated Return for any earlier Agreement Year, an adjustment shall be made to the corresponding Pro Forma Subsidiary Return or Pro Forma Parent Return, as applicable, to reflect the utilization of such carryback, and all calculations of payments made pursuant to Sections 4 and 5 of this Agreement shall be recomputed to reflect the effect of such carryback on the relevant Pro Forma Subsidiary Return or Pro Forma Parent Return.  Within 30 days after the date on which the Parent Consolidated Return reflecting utilization of such attribute is filed, Subsidiary or Parent, as appropriate, shall make additional payments to the other party reflecting the recomputation described in the preceding sentence.

7.           PREPARATION OF TAX PACKAGE AND OTHER FINANCIAL REPORTING INFORMATION

Subsidiary shall provide to Parent in a format determined by Parent all information requested by Parent as reasonably necessary to prepare the Parent Consolidated Return and the Pro Forma Subsidiary Return (the “Subsidiary Tax Package”). The Subsidiary Tax Package with respect to any taxable year shall be provided to Parent on a basis consistent with current practices of the Parent Consolidated Group. Subsidiary shall also provide to Parent information required to determine the Estimated Tax Payments, current federal taxable income, current and deferred tax liabilities, tax reserve items, and any additional current or prior information required by Parent on a timely basis consistent with current practices of the Parent Consolidated Group.

  

  

  

 

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8.           RETURNS, AUDITS, REFUNDS, AMENDED RETURNS, LITIGATION, ADJUSTMENTS AND RULINGS

(a)           Returns.  Parent shall have exclusive and sole responsibility for the preparation and filing of the Parent Consolidated Returns (including requests for extensions thereof) and any other returns, amended returns and other documents or statements required to be filed with the IRS in connection with the determination of the federal income tax liability of the Parent Consolidated Group.

(b)           Audits; Refund Claims.  Parent will have exclusive and sole responsibility and control with respect to the conduct and settlement of IRS examinations of the returns filed by the Parent Consolidated Group and any refund claims with respect thereto.  Subsidiary shall assist and cooperate with Parent during the course of any such proceeding.  Within 10 days of the commencement of any such proceeding or obtaining knowledge of the threat of such proceeding, Parent shall give Subsidiary notice of and consult with Subsidiary with respect to any issues relating to items of income, gain, loss, deduction or credit of Subsidiary (any such items, “Subsidiary Return Items”); provided, that,  Subsidiary shall not be relieved of any obligation to make additional payments under this Agreement if Parent fails to timely deliver the notice described above except to the extent that Subsidiary is actually prejudiced thereby.  Parent shall have the right in its sole discretion to have Subsidiary pay any disputed taxes with respect to Subsidiary Return Items and sue for a refund in the forum of Parent’s choice.  Parent and Subsidiary shall act in good faith with respect to the matters described in this Section 8(b).

(c)           Litigation.  If the federal income tax liability of the Parent Consolidated Group becomes the subject of litigation in any court, the conduct and settlement of the litigation shall be controlled exclusively by Parent.  Subsidiary shall assist and cooperate with Parent during the course of litigation, and Parent shall consult with Subsidiary regarding any issues relating to Subsidiary Return Items. Parent and Subsidiary shall act in good faith with respect to the matters described in this Section 8(c).

(d)           Expenses.  Subsidiary shall reimburse Parent for all reasonable out-of-pocket expenses (including, without limitation, legal, consulting and accounting fees) in the course of proceedings described in paragraphs (b) and (c) of this Section to the extent such expenses are reasonably attributable to Subsidiary Return Items for any Agreement Year.

  

  

  

 

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(e)           Recalculation Of Payments To Reflect Adjustments.  To the extent that there is a Determination with respect to a Parent Consolidated Return for any year, or a Subsidiary Consolidated Group return for a Post-Consolidation Year, that results in an additional payment of tax (including a payment of tax made preliminary to commencing a refund claim or litigation) or a refund of tax (including a refund of a preliminary payment referred to in the preceding parenthetical) (any such additional payment or refund, an “Adjustment”) relating to the Parent Consolidated Return for an Agreement Year, a corresponding adjustment shall be made to the corresponding Pro Forma Subsidiary Return or Pro Forma Parent Return, as applicable.

All calculations of payments made pursuant to Sections 4, 5 and 6 of the Agreement shall be recomputed to reflect the effect of any Adjustments on (i) the relevant Pro Forma Subsidiary Return or Pro Forma Parent Return, and (ii) the liability of Subsidiary or Parent for a Post-Consolidation Year; provided, that, any such payment recomputation shall also take into account any previous adjusted payments made in connection with an Adjustment resulting from a prior Determination.  Within 5 days after any such Adjustment, Subsidiary or Parent, as appropriate, shall make additional payments or refund payments to the other party reflecting such Adjustment, plus interest pursuant to Section 9 of the Agreement, calculated as if payments by and to Subsidiary pursuant to Sections 4, 5 and 6 of the Agreement and this Section 8 were payments and refunds of federal income taxes.  Subsidiary shall further pay to Parent, on an after-tax basis, the amount of any penalties or additions to tax incurred by the Parent Consolidated Group in connection with any adjustment to any Subsidiary Return Item for an Agreement Year, but only if such penalties or additions to tax result from the inaccuracy of any information provided by Subsidiary to Parent pursuant to Section 7 hereof or from the failure of Subsidiary to provide any requested information.

(f)           Rulings.  Subsidiary shall assist and cooperate with Parent and take all reasonable actions requested by Parent in connection with any ruling requests submitted by Parent to the IRS.

(g)           Applicability With Respect To All Consolidated Returns.  The provisions of Section 8(a), (b) and (c) above shall apply to Parent Consolidated Returns and Subsidiary Return Items for all taxable years in which Subsidiary is includable in the Parent Consolidated Group.

(h)           Document Retention, Access To Records & Use Of Personnel.  Until the expiration of the relevant statute of limitations (including extensions), each of Parent and Subsidiary shall (i) retain records, documents, accounting data, computer data and other information (collectively, the “Records”) necessary for the preparation, filing, review, audit or defense of all tax returns relevant to an obligation, right or liability of either party under the Agreement; and (ii) give each other reasonable access to such Records and to its personnel (insuring their cooperation) and premises to the extent relevant to an obligation, right or liability of either party under the Agreement.  Prior to disposing of any such Records, each of Parent and Subsidiary shall notify the other party in writing of such intention and afford the other party the opportunity to take possession or make copies of such Records at its discretion.  Parent and Subsidiary shall provide one another with such information concerning such returns and the application of payments made under this Agreement as any of such corporations may reasonably request of one another.

  

  

  

 

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9.           INTEREST

Interest required to be paid pursuant to the Agreement shall, unless otherwise specified, be computed at the rate and in the manner provided in the Code for interest on underpayments and overpayments, respectively, of federal income tax for the relevant period.  Any payments required pursuant to the Agreement which are not made within the time period specified in the Agreement shall bear interest at a rate equal to the rate provided in the Code for interest on underpayments of tax.

10.           FOREIGN, STATE AND LOCAL INCOME TAXES

(a)           In the case of foreign, state or local taxes based on or measured by the net income of the Parent Consolidated Group, or any combination of members thereof (other than solely with respect to the Subsidiary Consolidated Group or members of the Parent Group) on a combined, consolidated or unitary basis, the provisions of the Agreement shall apply with equal force to such foreign, state or local tax for each Agreement Year whether or not the Subsidiary Consolidated Group is included in the Parent Consolidated Group for federal income tax purposes; provided, however, that interest pursuant to the first sentence of Section 9 of the Agreement shall be computed at the rate and in the manner provided under such foreign, state or local law for interest on underpayments and  overpayments of such tax for the relevant period and references to provisions of the Code throughout the Agreement shall be deemed to be references to analogous provisions of state, local, and foreign law.

(b)           For any Agreement Year, Parent shall have the sole and exclusive control of (a) the determination of whether a combined, consolidated or unitary tax return should be filed for any foreign, state or local tax purpose and (b) all foreign, state or local income tax audits and litigation with respect to the Subsidiary Consolidated Group to the same extent as provided in this Agreement for federal income tax matters (including the right in its sole discretion to have Subsidiary pay any disputed taxes and sue for a refund in the forum of Parent's choice).  Subsidiary shall reimburse Parent for all reasonable out-of-pocket expenses (including, without limitation, legal, consulting and accounting fees) in the course of proceedings described in the preceding sentence, to the extent such expenses are reasonably attributable to the Subsidiary Consolidated Group.

  

  

  

 

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(c)           Subsidiary shall be responsible for filing tax returns relating to payroll, sales and use, property, withholding, capital stock, net worth and similar taxes attributable to members of the Subsidiary Consolidated Group and shall be responsible for the payment of such taxes.

(d)           For all taxable years that Subsidiary is a member of the Parent Consolidated Group, Subsidiary shall have responsibility for all taxes based on or measured by net income that are determined solely by the income of the Subsidiary Consolidated Group (or any combination of the members thereof, including the predecessors and successors of such members) on a combined, consolidated, unitary or separate company basis.

11.           CONFIDENTIALITY

Each of Parent and Subsidiary agrees that any information furnished pursuant to the Agreement is confidential and, except as and to the extent required by law (including, without limitation, applicable securities laws) or otherwise during the course of an audit or litigation or other administrative or legal proceeding, shall not be disclosed to other persons.  In addition, each of Parent and Subsidiary shall cause its employees, agents and advisors to comply with the terms of this Section 11. The terms and provisions of this Section 11 shall survive any termination of this Agreement.

12.           SUCCESSORS AND ACCESS TO INFORMATION

The Agreement shall be binding upon and inure to the benefit of any successor to any of the parties, by merger, acquisition of assets or otherwise, to the same extent as if the successor had been an original party to the Agreement, and in such event, all references herein to a party shall refer instead to the successor of such party.  If for any taxable year Subsidiary is no longer included in the Parent Consolidated Group, Parent and Subsidiary agree to provide to the other party any information reasonably required to complete tax returns for taxable periods beginning after Subsidiary is no longer included in a Parent Consolidated Return, and each of Parent and Subsidiary will cooperate with respect to any audits or litigation relating to any Parent Consolidated Return.

13.           GOVERNING LAW

The Agreement shall be governed by and construed in accordance with the laws of New York excluding (to the greatest extent permissible by law) any rule of law that would cause the application of the laws of any jurisdiction other than the State of New York.

  

  

  

 

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14.           HEADINGS

The headings in the Agreement are for convenience only and shall not be deemed for any purpose to constitute a part or to affect the interpretation of the Agreement.

15.           COUNTERPARTS

The Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, and it shall not be necessary in making proof of the Agreement to produce or account for more than one counterpart.

16.           NOTICES

Any payment, notice or communication required or permitted to be given under the Agreement shall be in writing (including telecopy communication) and mailed, telecopied or delivered:

If to Parent:

	 	
Parent 

	
: JUBILANT LIFE SCIENCES HOLDINGS INC.

  c/o Jubilant Life Sciences (USA) Inc.

  One Crossroads Drive

  Bedminster, NJ 07921

	 	
Attention 

	
: MR. RAHUL DEVNANI

 

	 	
Fax 

	
: 908-947-7956

	 	
If to Subsidiary

	
: CADISTA HOLDINGS INC

  207 Kiley Drive

  Salisbury, MD 21801 

	 	
Attn 

	
: MR. KAMAL MANDAN

	 	
Fax 

	
: 410-860-8719

or to any other address as Parent or Subsidiary shall furnish in writing to one another.  All such notices and communications shall be effective when received.

17.           SEVERABILITY

If any provision of the Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the maximum extent practicable.  In any event, all other provisions of the Agreement shall be deemed valid, binding, and enforceable to their full extent.

  

  

  

 

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18.           TERMINATION

The Agreement shall remain in force and be binding so long as the applicable period of assessments (including extensions) remains unexpired for any taxes contemplated by the Agreement; provided, however, that neither Parent nor Subsidiary shall have any liability to the other party with respect to tax liabilities for taxable years in which Subsidiary is not included in the Parent Consolidated Returns except as provided in Sections 5 and 10 of this Agreement; provided, further, however,  that all rights and obligations arising hereunder shall survive until they are fully effectuated and performed unless superseded by mutual agreement of the Parent and Subsidiary.

19.           SUCCESSOR PROVISIONS

Any reference herein to any provisions of the Code or Treasury Regulations shall be deemed to include any amendments or successor provisions thereto as appropriate.

20.           COMPLIANCE BY SUBSIDIARIES

Parent and Subsidiary each agrees to cause all members of the Parent Group and the Subsidiary Consolidated Group (including predecessors and successors to such members) to comply with the terms of the Agreement.

21.           NON-DISCRIMINATION AND PROVIDING INFORMATION

Parent shall:  (i) not discriminate among members of the Parent Consolidated Group, (ii) be obligated to act in good–faith with regard to all members of the Parent Consolidated Group, and (iii) not take any unreasonable positions in the Pro Forma Subsidiary Returns.  Parent shall promptly provide to Subsidiary such information as it shall reasonably request related to the basis for any requested payments from Subsidiary hereunder or the amount of payments to be made to Subsidiary hereunder.

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IN WITNESS WHEREOF, each of the parties of the Agreement has caused the Agreement to be executed by its duly authorized officer and delivered on the 7th day of November  2011 and effective as of October 1, 2011.

 

	 	
JUBILANT LIFE SCIENCES HOLDINGS, INC.

	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Rahul Devnani	 
	 	 	
Name: RAHUL DEVNANI

	 
	 	 	
Title  : CHIEF FINANCIAL OFFICER

	 
	 	 	 	 

 

	 	
CADISTA HOLDINGS, INC.

	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Kamal Mandan	 
	 	 	
Name: KAMAL MANDAN

	 
	 	 	
Title: CHIEF FINANCIAL OFFICERUnassociated Document

 

EXHIBIT 10.1

 

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT, effective as of July 25, 2011 (the “Effective Date”), by and between AboveNet, Inc. (the "Company"), a Delaware corporation having its principal offices at 360 Hamilton Avenue, White Plains, New York 10601 and Nicholas Ridolfi, residing at 370 East 76th Street, Apt. C502,  New York, NY 10021 (the "Employee").

 

W I T N E S S E T H:

 

WHEREAS, the Company proposes to employee the Employee;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto agree as follows:

 

	
  

	
1.

	
Employment; Term.

 

(a)  The Company hereby agrees to employ the Employee, and the Employee hereby agrees to serve, as Senior Vice President for Sales during the Term (defined below).

 

(b)  The term (the "Term") of the Employee's employment hereunder will commence on July 25, 2011 and, unless sooner terminated as provided in Section 6 hereof, will terminate at the end of the day on December 31, 2012. The Term shall be automatically extended, unless sooner terminated as provided herein, for successive additional one-year periods, unless at least 120 days prior to the end of the Term, the Company or the Employee has notified the other that the Term will not be extended.

 

	
2.  

	
Duties.

 

(a)  The Employee will have such powers and duties reasonably consistent with Employee's position as Senior Vice President for Sales, and will perform such duties as assigned to him by the Chief Operating Officer, or such other senior executive designated by either the Chief Executive Officer or the Chief Operating Officer (the “Superior”).  The Employee agrees to perform his duties and exercise his authority pursuant to the direction and control of his Superior and will report to his Superior.  The Employee will perform his duties diligently, faithfully and to the best of his ability and in accordance with sound business practices. The Employee will be based in New York City, New York or alternatively in White Plains, New York, but will be expected to travel extensively.

 

(b)  The Employee will devote substantially all his business time and attention to his duties and responsibilities hereunder, subject to paid vacations and holidays as hereinafter set forth in Section 5 of this Agreement.

 

(c)  The Employee will comply with all Company policies including its Code of Conduct.

 

  

  

  

 

	
3.  

	
Compensation.

 

(a)  Base Salary.  During the Term, for all the services rendered by the Employee in all capacities hereunder, the Employee will receive an annual base salary of $250,000 (the "Base Salary") subject to required deductions and withholdings or as otherwise required by law, payable in accordance with the standard payroll practices of the Company then in effect which is currently twice a month.  Base Salary may be increased but not decreased during the Term.

 

(b)  Bonus Plan.  In addition to the Base Salary set forth in Section 3(a) hereof, the Employee will have an annualized bonus for 2011 targeted at $100,000 and an annualized bonus for 2012 targeted at $250,000 (the "Bonus Plan"). The achievement of the bonus for 2011 shall be determined in the discretion of the Superior. The achievement of the bonus for 2012 will be determined based on the same goals as other senior executives of the Company or such other goals as determined by the Superior.  Such bonus will be determined following the close of the calendar year and paid by March 15 of the year following the year in which the bonus is earned.

 

	
4.  

	
Expenses.

 

The Company will reimburse the Employee for all reasonable out-of-pocket business expenses paid or incurred by him in connection with the performance of his duties and responsibilities hereunder, but payment will be made only against a signed, itemized list of such expenses, utilizing general forms for that purpose established by the Company and accompanied by proper documentation verifying such expenses.  Receipts will not be required for any expenses that are less than Twenty-Five Dollars ($25) in value.  The Company may audit the Employee's expense reports at any time.  Any reimbursement under this Agreement that would constitute nonqualified deferred compensation subject to Section 409A shall be subject to the following additional rules: (i) no reimbursement of any such expense shall affect the Employee’s right to reimbursement of any such expense in any other taxable year; (ii) reimbursement of the expense shall be made promptly and in no event later than the end of the calendar year following the calendar year in which the expense was incurred; and (iii) the right to reimbursement shall not be subject to liquidation or exchange for any other benefit.

 

	
5.  

	
Additional Benefits; Vacations; Facilities.

 

(a)  During the Term, the Employee will be entitled to participate in all group health and insurance programs and all other fringe benefit or retirement plans or other plans provided to employees of the Company in similarly-situated executive positions generally, subject to the Employee's satisfying all of the eligibility requirements thereof.  Nothing herein will be deemed to require the Company to establish or maintain any employee benefit plan whatsoever, and the Company has the right, in its sole and absolute discretion, to alter, amend, modify, discontinue or terminate any and all employee benefit plans at any time.

 

  

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(b) During the Term, the Employee will be entitled to the generally same paid holidays as are provided to employees in similarly-situated executive positions generally and will be entitled to paid time off (including vacation days and sick days) per calendar year of 25 days or such greater amount provided by the then existing Company policy, consistent with his duties and responsibilities hereunder and the Company's vacation policy.  Paid time off which remains unused at the end of a calendar year will be subject to the then existing policy regarding carryover of, or payments for, such unused time.

 

(c)  If the Employee qualifies for term life insurance at non-smoker's rates, the Company will provide the Employee during the Term, at no cost (other than potential income tax) to the Employee, with a life insurance policy providing for a death benefit of no less than $1,000,000.  If the Employee fails to qualify for term life insurance at non-smoker's rates, the Company will make its best efforts to provide the Employee, at no cost (other than potential income tax) to the Employee, with the maximum amount of term life insurance it can obtain for the premiums the Company would have paid on a policy providing a death benefit of $1,000,000 at non-smoker's rates if the Employee were qualified for such insurance.

 

	
6.  

	
Termination of Employment.

 

This Agreement may be terminated prior to the end of the Term in accordance with the following provisions:

 

(a)  Death.  In the event of the Employee's death prior to the end of the Term, this Agreement will automatically terminate.  In such event, the Employee's beneficiary or beneficiaries will be entitled to:  (i) all accrued but unpaid Base Salary and (ii) all accrued paid time off (collectively, the "Accrued Benefits"), payable in a single lump sum in accordance with Section 6(f).

 

(b)  Disability.  If the Employee suffers a Disability (as hereinafter defined) prior to the end of the Term, this Agreement may be terminated at the option of the Company by notice from the Company to the Employee given at any time after the Employee has suffered a Disability.  The term "Disability" shall have the meaning set forth in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended.  In such event, such termination will be effective as of the date on which the Company gives notice to the Employee that it is terminating his employment hereunder pursuant to this Section 6(b). In such event, the Employee will be entitled to the Accrued Benefits, payable in a single lump sum in accordance with Section 6(f).

 

(c)  For Cause or Not For Good Reason.

 

(i) This Agreement may be terminated prior to the end of the Term at the option of the Company for Cause (as hereinafter defined) or by the Employee not for Good Reason (as defined in subsection (d) below), effective as of the date on which the Company gives notice to the Employee that it is terminating his employment pursuant to this Section 6(c) or the date on which the Employee gives notice to the Company that he is terminating his employment pursuant to this Section 6(c).

 

  

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(ii) The term for "Cause" means any of the following events:

 

(A) fraud, misappropriation or embezzlement of funds or property by the Employee involving the Company or an Affiliated Company (as hereinafter defined);

 

(B) the conviction of the Employee in any jurisdiction for any crime which constitutes a felony, or which constitutes a misdemeanor that involves fraud, moral turpitude or material loss to the Company or an Affiliated Company, or their respective businesses or reputations;

 

(C) the Employee's material misconduct in, or material neglect of, the performance of his material duties and responsibilities hereunder, or the Employee's violation of any reasonable specific directions of the Superior which directions are consistent with the provisions of this Agreement; or

 

(D) the Employee's material breach of this Agreement, including but not limited to the provisions set forth in Sections 7 (Confidential Information), 8 (Restricted Covenants), 9 (Bribery, Extortion or Kickbacks) and 10 (Intellectual Property) hereof.

 

(iii) In the event of the termination of the Employee's employment hereunder for "Cause" or by the Employee not for "Good Reason", such termination will be effective as of the date of notice of such termination and the Company will have no further obligations whatsoever hereunder to compensate the Employee pursuant to the terms of this Agreement other than with respect to the accrued but unpaid Base Salary, accrued paid time off, and any accrued benefits under the Company's benefit plans through the date of termination, which amounts shall be paid in a single lump sum within the timeframe specified in Section 6(f).

 

(iv) The term "Affiliated Companies" means all entities that directly or indirectly control, or are controlled by, the Company, all entities that are under direct or indirect common control with the Company, and all entities in which the Company has a significant joint venture or other similar interest.  (Any entity which is a member of the Affiliated Companies is referred to herein as an “Affiliated Company”.)  "Control" and "controlled" means possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a corporation, partnership or other entity, whether through ownership of voting securities, by contract or otherwise.

 

  

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(d) For Good Reason or Without Cause.

 

(i) This Agreement may be terminated prior to the end of the Term by the Employee for Good Reason (as hereinafter defined) or at the option of the Company without Cause, effective as of the date on which the Employee gives notice to the Company that he is terminating his employment pursuant to this Section 6(d) or as of the date on which the Company gives notice to the Employee that it is terminating his employment pursuant to this Section 6(d).

 

(ii) The term “Good Reason” means either of the following two events:

 

(a) the Company's material breach of any provision of the Agreement which breach continues uncured for thirty-five (35) days after written notice thereof is given to the Company by the Employee, or

 

(b)  a material relocation of the Employee's principal place of employment on the Effective Date of this Agreement, provided that the Company chooses not to rescind such relocation within thirty-five (35) days after written notice requesting that it be rescinded is given to the Company by the Employee.

 

In both cases (a) and (b), the notice of alleged breach or relocation must be provided to the Company within ninety (90) days of the initial existence of such condition and the Employee shall only have the right to terminate the Agreement for Good Reason within six (6) months of the initial existence of such condition and only if such condition is not cured or rescinded, as the case may be, prior to such termination.

 

(iii) Upon termination of the Employee’s employment with the Company by the Company without Cause or by the Employee for Good Reason, the Employee will be entitled to receive from the Company in a single lump sum (A) the Accrued Benefits, and (B) the payment of six months Base Salary, payable in accordance with Section 6(e) and (f).

 

(e)  Release.  A condition precedent to the Company's obligations under Section 6(d) will be the Employee’s execution and delivery of the release of all claims (other than claims under Section 6(d) of this Agreement and for directors' and officers' indemnification) he may have against the Company, its affiliates and their directors, officers, employees, agents and shareholders which relate to his employment with the Company and termination of such employment (the "Release"). Such release must be executed by the Employee and delivered to the Company within forty-five (45) days after termination of employment, and the statutory period during which the Employee is entitled to revoke the Release must have expired on or before sixty (60) days following the Employee’s termination of employment.

 

(f)  Payment Date.   The Employee will receive all required payments under Sections 6(a) through 6(c) in a single lump sum no later than 30 days following the Employee’s termination of employment, and in no event shall the Employee be entitled to designate the taxable year of such payment.  The Employee will receive the Accrued Benefits and six months’ Base Salary provided in Section 6(d) in a single lump sum on the 60th day following the Employee’s termination of employment; provided that the Employee has executed and not revoked the Release as provided above.  The foregoing payment dates shall be subject to the provisions of Section 6(i)

 

  

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(g) No Mitigation; No Set-Off.  In the event of the termination of Employee’s employment by the Company without Cause or by the Employee for Good Reason, the Employee shall be under no obligation to seek other employment and there shall be no offset against amounts due to him on account of any remuneration or benefits provided to him by any subsequent employment he may obtain.

 

(h)  Excise Tax. In the event that any payment or benefit made or provided to or for the benefit of the Employee in connection with this Agreement or his employment with the Company or the termination thereof (a “Change of Control Payment”) is determined to be subject to any excise tax (“Excise Tax”) imposed by Section 4999 of the United States Internal Revenue Code of 1986, as amended, (or any successor to such section), if it is determined that, on an after–Excise Tax basis, the Employee’s economic benefit would be increased if the Company reduced the Change of Control Payments to be provided to the Employee to the extent necessary to avoid the imposition of the Excise Tax, the Company will reduce such Change in Control Payments to the Employee. The determination regarding the Excise Tax will be made by an expert on the issues related to the Excise Tax selected by the Company and approved by the Employee. The same expert will be used for the determination of any other Excise Taxes due relating to a Change of Control for any other employee.

 

(i) Notwithstanding anything to the contrary in this Agreement, if at the time of the Employee’s termination of employment the Employee is a “specified employee” as defined below, any and all amounts payable to the Employee under this Agreement (or any other agreement between the Company and the Employee) on account of such termination of employment that would (but for this provision) be payable within six (6) months following the Employee’s termination of employment, shall instead be paid on the next regular payday following the expiration of such six (6) month period, or if earlier on the date of the Employee’s death, except to the extent such amounts do not constitute a deferral of compensation (e.g., because they comply with the short-term deferral exception from Code Section 409A, or are excepted welfare benefits, or are otherwise not subject to Code Section 409A).   For purposes of this Agreement, all references to “termination of employment” shall be construed to require a “separation from service” as defined in Treasury Regulation Section 1.409A-1(h).  The term “specified employee” shall mean an individual determined by the Company to be a specified employee under Treasury Regulation Section 1.409A-1(i).  Payments under this Agreement are intended either to be exempt from Code Section 409A or to satisfy those rules and the Agreement shall be construed accordingly; provided, however, that neither the Company, or any of its affiliates, nor its Board or any other person acting on behalf of the Company shall be liable to the Employee or his estate or beneficiary by reason of the failure of any payment to satisfy the requirements of Code Section 409A and the regulations promulgated thereunder.

 

  

6

  

 

	
7.  

	
Confidential Information.  The Employee covenants and agrees that:

 

(a)  During the Term and thereafter, he will keep secret and retain in the strictest confidence all information about business and financial matters (including, without limitation, information relating to costs, profits, budgets and plans for future development, strategy, methods of operation and marketing concepts) of the Company and the Affiliated Companies, their respective employment policies and plans, and any other trade secrets and proprietary information relating to the Company, the Affiliated Companies or their respective operations, business and financial affairs, other than information which is otherwise generally available to the public other than as a result of a disclosure by the Employee (collectively, the "Confidential Information"), and, for such time as the Company or any Affiliated Company is operating, not disclose any Confidential Information to anyone outside of the Company or an Affiliated Company, either during or after the term of his employment by the Company or an Affiliated Company, except:  (i) in the course of performing his duties hereunder; (ii) with the Company's express prior written consent; or (iii) as required by law.

 

(b)  The Employee will surrender to the Company immediately after the termination of his employment hereunder, or at any time the Company may so request, all memoranda, notes, records, reports, lists and other documents in whatever form or medium containing, describing or relating to Confidential Information, together with all copies thereof, obtained by him or entrusted to him during the course of his employment by the Company or an Affiliated Company or otherwise in his possession at the time of such termination or request.

 

	
8.  

	
Restrictive Covenants.

 

(a)  Employee covenants and agrees that:

 

(i) except with respect to a Permitted Investment (as such term is defined below), while employed by the Company and, if the Employee’s employment with the Company is terminated for any reason during the Term, for three (3) months after the termination of his employment with the Company, he will not compete, directly or indirectly, with the Company or any Affiliated Company, by participating in the direct or indirect ownership, management, operation or control, whether as an officer, director, partner, employee, advisor, stockholder, investor, consultant, agent, independent contractor, lender or otherwise, of any corporation, partnership or other entity which owns, acquires or seeks to acquire or obtain any franchise, lease or license, relating to, or is otherwise engaged in, the acquisition of or planning, design, construction and deployment of fiber optic telecommunications services or the provision of high performance internet connectivity solutions for electronic commerce and other business critical internet operations or similar business purpose (collectively "Telecommunications Services").  As used in this Section 8(a), ”Permitted Investment” means the ownership by the Employee (as the result of open market purchase(s)) of one (1%) percent or less of any class of capital stock of a corporation which is regularly traded on a national securities exchange or over the counter on the NASDAQ system.

 

  

7

  

 

(ii) for twelve months following termination of his employment with the Company for any reason whatsoever;

 

(A) he will not solicit, in competition with the Company or any Affiliated Company, any person who is a customer of the Company or any Affiliated Company; and

 

(B) he will not employ or induce or attempt to persuade any employee of the Company or any Affiliated Company to terminate his employment relationship in order to enter into competitive employment, or in any way cause, influence or participate in the employment of any such individual by anyone else in any business that is competitive with any business then engaged in by the Company or any Affiliated Company.

 

(b)  If any of the restrictions contained or referenced in this Section 8 is for any reason held by court to be excessively broad as to duration, activity, geographical scope, or subject, then such restriction shall be construed or judicially modified so as to thereafter be limited or reduced to the extent required to be enforceable in accordance with applicable law; provided, however, that such court’s determination will not affect the enforceability of Section 8 hereof in any other jurisdiction.

 

(c)  If Employee breaches, or threatens to commit a breach of, any of the provisions of this Section 8 (collectively, the "Restrictive Covenants"), the Company will have the following rights and remedies, each of which rights and remedies will be independent of the other and severally enforceable, and all of which rights and remedies will be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity:

 

(i) Specific Performance.  The right and remedy to seek from any court of competent jurisdiction specific performance of the Restrictive Covenants or injunctive relief against any act which would violate any of the Restrictive Covenants, it being acknowledged and agreed that any breach or threatened breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy.

 

(ii) Accounting.  The right and remedy to require Employee to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by the Employee as the result of any transactions constituting a breach of any of the Restrictive Covenants.

 

  

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9.  

	
Bribery, Extortion and Kickbacks.

 

Employee will not at any time make or promise to make or accept any payments or transfers of value which has the purpose or effect of public or commercial bribery, acceptance of or acquiescence in extortion, kickbacks or other unlawful or improper means of obtaining or conducting business for the Company.  Employee will not at any time agree that he will, in connection with his employment or in connection with any other business transactions involving the Company, make or promise to make any payment or transfer anything of value, directly or indirectly: (i) to any governmental official or employee (including employees of government corporations); (ii) to any political party, official of a political party or candidate (or to an intermediary for payment to any of the foregoing); (iii) to any officer, director, employee, or representative of any actual or potential customer of the Company; or (iv) to any other person or entity.  The foregoing will not prohibit normal and customary business entertainment or the giving of business mementos of nominal value.

 

	
10.  

	
Ownership of Intellectual Property.

 

(a)  All Inventions (as hereinafter defined), or patents, trademarks, copyrights, trade secrets or any other rights relating to any of the foregoing, which have or may have a material importance to the business of the Company and which are conceived or made by Employee in connection with his employment with the Company, either alone or with others, are the sole and exclusive property of the Company whether or not they are conceived or made during work time for the Company, except to the extent generally known by persons generally knowledgeable in the fiber optics telecommunications field.

 

(b)  Employee will immediately disclose to the Company any and all Inventions (whether or not patentable) made or conceived by the Employee during the Term, either alone or in conjunction with others, whether or not made or conceived at the request or upon the suggestion of the Company, whether or not resulting from any work done in the course of employment, whether or not reduced to practice during the term of employment, and whether or not made or conceived during or outside of the usual hours of employment or upon or not upon any premises of the Company.

 

(c)  Employee assigns and will hereafter assign to the Company all present or future right, title and interest in and to all Inventions referred to above.  Employee will not disclose any such Inventions to any third party without the written consent of the Company.

 

(d)  At any time and from time to time during and after the Term, on the request of the Company, without further consideration Employee will:  (i) execute specific documents of assignment in favor of the Company, or its nominee, of any of the Inventions covered hereunder, (ii) execute all papers and perform all acts the Company considers necessary or advisable for the preparation, application procurement, maintenance, enforcement and defense of patent applications and patents of the United States or other jurisdictions of such Inventions, if applicable, for the perfection or enforcement of any trademarks, copyrights or trade secrets relating to such Invention, and for the transfer of any interest the Employee may have in such Inventions, and (iii) execute any and all papers and comments which the Company considers to necessary to vest sole right, title and interest in the Company or its nominee in and to the above Inventions, patent applications, patents, or any trademarks or copyright or applications therefore relating thereto.  Notwithstanding the foregoing, after termination of employment, Employee will be entitled to reasonable compensation for more than incidental time and effort required to be expended by Employee to fulfill his responsibilities under clause (ii).  Employee will execute all documents (including those referred to above) and do all other acts which the Company considers to be necessary to assist in the preservation of all the Company's interests in such Inventions.

 

  

9

  

 

(e)  Upon execution of this Agreement, Employee will provide to the Company, if Employee has not already done so, a complete written list of all Inventions which have been made or conceived before his employment with the Company commenced or first reduced to practice by Employee alone or in conjunction with others prior to employment with the Company.

 

(f)  For purposes of this Section 10, "Invention" means:  (i) any and all machines, apparatuses, compositions of matter, methods, know-how, processes, computer programs, designs, configurations, uses thereof, or writings (in any form or any media) of any kind, discovered, conceived, developed, made or produced, or any improvement to the same, and will not be limited to the definition of any invention contained in the United States Patent law; (ii) all matters subject to copyright protection under United States law; (iii) all matters subject to trademark protection under the laws of the United States or those of any state of the United States or under common law of any jurisdiction within the United States; and (iv) all matters subject to protection as trade secrets under the laws or common law of any state of the United States or of the United States.

 

(g)  For purposes of this Section 10, the term "Work Product" refers to all work product and work-in-progress generated, created, or developed by Employee in the course of employment, regardless of the form or medium in which such Work Product is embodied, including without limitation electronic form and new media.  All Work Product will be deemed work made for hire as defined by the Copyright Act of 1976.  As such, all right, title and interest in and to all Work Product will vest in and remain with the Company from its inception, and Employee will execute all documents and all acts which the Company considers necessary to assist in the preservation of the Company's interest in such Work Product.

 

(h)  If a court of competent jurisdiction determines that the Work Product does not constitute work made for hire, Employee agrees that this Agreement constitutes a written continuing assignment by the Employee to the Company of all right, title and interest in and to the Work Product.

 

  

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11.  

	
Enforcement.

 

It is agreed by the Employee that any breach or threatened breach by the Employee of any provision of Sections 7, 8, 9 or 10 hereof cannot be remedied solely by damages.  In the event of a breach or threatened breach by the Employee of any of the provisions of Sections 7, 8, 9 or 10 hereof, the Company or any Affiliated Company will be entitled to injunctive relief restraining the Employee and any business, firm, partnership, individual, corporation or other entity participating in such breach or threatened breach.  Nothing contained herein will be construed to prohibit the Company or any Affiliated Company from pursuing any other remedies available at law or in equity for such breach or threatened breach, including, without limitation, the recovery of damages.

 

	
12.  

	
Representations and Warranties.

 

(a)  The Employee represents and warrants to the Company that:

 

(i) The Employee has full power and authority to enter into this Agreement, and this Agreement has been duly and validly executed and delivered by the Employee and constitutes the legal, valid and binding obligation of the Employee, enforceable against the Employee in accordance with its terms;

 

(ii) The execution and delivery of this Agreement by the Employee and his performance hereunder will not violate any provision of law and will not conflict with or result in a breach of any judgment, decree, order, writ, injunction, regulation, ordinance or other similar document or instrument of any court or governmental authority, and will not (with or without the giving of notice or lapse of time, or both) violate or breach any term or condition of, or constitute a default under, any agreement, document or instrument to which the Employee is a party or by which he is bound; and

 

(iii) The execution and delivery of this Agreement by the Employee and his performance hereunder do not require the consent or approval of any other person or entity.

 

(b)  The Company represents and warrants to the Employee that it has full power and authority to execute and deliver this Agreement and perform its obligations hereunder and this Agreement has been duly executed and delivered, will be valid and binding as of the Effective Date and enforceable in accordance with its terms.

 

	
13.  

	
Notices.

 

All notices and other communications hereunder will be in writing and will be deemed to have been duly given if delivered by hand, registered or certified mail (first class postage and fees prepaid, return receipt requested), facsimile or overnight courier guaranteeing next-day delivery, as follows:

 

(a) If to the Company, one copy to:

 

AboveNet Inc.

360 Hamilton Avenue

White Plains, New York 10601

Attention:  Chief Executive Officer

Fax No.:  (914) 421-7550

 

(b)  If to the Employee, one copy to:

 

370 East 76th Street

Apt. C502

New York, NY 10021

and/or to such other address as the Company may have on file for the Employee.

 

  

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14.  

	
Amendment.

 

This Agreement may not be amended, changed, modified or discharged except by an instrument in writing executed by or on behalf of the party or parties against whom any amendment, change, modification or discharge is sought to be enforced.

 

	
15.  

	
Waiver.

 

No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof will constitute a waiver of any such breach or of any other covenant, duty, agreement or condition of this Agreement, any such waiver being made only by a written instrument executed and delivered by the waiving party.  Such written waiver by the Company must be approved by the CEO or the Board.

 

	
16.  

	
Assignability.

 

This Agreement will not be assignable by the Employee and any purported assignment hereof by the Employee will be null and void.  This Agreement will be binding upon, and inure to the benefit of, the Employee and his heirs, executors, administrators and legal representatives, and the Company and its successors and assigns.

 

	
17.  

	
Severability.

 

If any of the covenants contained in this Agreement, including, without limitation, those contained in Sections 7, 8 or 10 hereof, are hereafter construed to be invalid or unenforceable in any jurisdiction, the same will not affect the remainder of the covenant or covenants or their enforceability in any other jurisdiction, which will be given full force and effect, without regard to the invalid portions or the enforceability in such other jurisdiction.

 

  

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18.  

	
Governing Law.

 

This Agreement will be governed by, and construed and interpreted in accordance with, the laws of the State of New York without reference to conflict of laws principles.

 

	
19.  

	
Indemnification and Liability Insurance.

 

The Company agrees to indemnify the Employee and hold him harmless, both during the Term and thereafter, to the fullest extent permitted by law and under the articles, by-laws, or other agreements of the Company against and in respect to any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including reasonable attorneys fees), losses, and damages resulting from the Employee's good faith performance of his duties as an officer or director of the Company, on or after the Effective Date.

 

	
20.  

	
Consent to Jurisdiction and Service of Process.

 

The parties hereto irrevocably (a) submit to the exclusive jurisdiction of the courts of the State of New York or the courts of the United States located in the State of New York, for the purpose of any suit, action or other proceeding arising out of this Agreement, and (b) waive to the extent not prohibited by law, and agree not to assert, by way of motion, as a defense or otherwise, in any such suit, action or proceeding, any claim that they are not subject to the personal jurisdiction of the above-named courts, that their property is exempt or immune from attachment or execution, that any such suit, action or proceeding brought in one of the above-named courts is brought in an inconvenient forum, that the venue of any such suit, action or proceeding is improper, or that this Agreement or the subject matter hereof may not be enforced in or by such court, and (c) waive the right to a trial by jury in any such suit, action or proceeding.

 

The Employee hereby consents to service of process in any such suit, action or proceeding in any manner permitted by civil practice laws and rules of the State of New York, and agrees that service of process by registered or certified mail, return receipt requested, at his address specified in or pursuant to Section 13 hereof is reasonably calculated to give actual notice.

 

	
21.  

	
Costs.

 

Each party to this Agreement will pay his costs (including legal fees) in connection with enforcement of this Agreement. However, if the Employee prevails on such issues, the Company will reimburse the Employee for all reasonable costs, including legal fees that the Employee incurs.  Notwithstanding the preceding, the Employee will not be reimbursed if the Employee challenges the validity of Section 8, regardless of whether the Employee is successful in such challenge.

 

	
22.  

	
Headings.

 

The headings contained in this Agreement are for convenience of reference only and in no way define, limit or describe the scope or intent of this Agreement or in any way affect this Agreement.

   

  

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23.  

	
Construction.

 

(a)  For purposes of this Agreement, whenever the context requires; the singular number will include the plural, and vice versa; and the masculine gender will include the feminine and neuter genders.

 

(b)  As used in this Agreement, the words "include" and "including" and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be followed by the words "without limitation."

 

	
24.  

	
Counterparts.

 

This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 

	
25.  

	
Survivor. 

 

Provisions of this Agreement which by their terms must survive the termination of this Agreement in order to effectuate the intent of the parties will survive any such termination, whether by expiration of the Term, termination of Employee’s employment, or otherwise, for such period as may be appropriate under the circumstances.  Such provisions include, without limitation, Section 7, 8, 10 and 11 of this Agreement.

 

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

	
AboveNet, Inc.

	  
	  
	  
	
By:

	
/s/ Robert Sokota

	
  

	
Name: Robert Sokota

	  	
Title: Senior Vice President and General Counsel

	  
	  
	  
	
/s/ Nicholas Ridolfi

	  	  	
Nicholas Ridolfi

 

 

  

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]