Document:

Exhibit 10.9  

AGREEMENT

between

EON LABS, INC.

and

LOCAL 815—INTERNATIONAL

BROTHERHOOD OF TEAMSTERS  

INDEX  

	ARTICLE I—	 	RECOGNITION	 	1
	

ARTICLE II—	
 	

DISCHARGE FOR CAUSE	
 	

1
	

ARTICLE III—	
 	

SENIORITY	
 	

1
	

ARTICLE IV—	
 	

DUES CHECKOFF	
 	

2
	

ARTICLE V—	
 	

ALLIED HEALTH & WELFARE FUND	
 	

2
	

ARTICLE VI—	
 	

UNION MUTUAL FUND	
 	

3
	

ARTICLE VII—	
 	

WORKDAY/WORKWEEK	
 	

4
	

ARTICLE VIII—	
 	

SHIFT DIFFERENTIAL	
 	

5
	

ARTICLE IX—	
 	

SHIFT ASSIGNMENTS AND STARTING TIMES	
 	

5
	

ARTICLE X—	
 	

PART TIME EMPLOYEES	
 	

6
	

ARTICLE XI—	
 	

HOLIDAYS	
 	

7
	

ARTICLE XII—	
 	

VACATION	
 	

9
	

ARTICLE XIII—	
 	

BREAKS	
 	

11
	

ARTICLE XIV—	
 	

MANAGEMENT RIGHTS	
 	

11
	

ARTICLE XV—	
 	

UNION VISITATION	
 	

12
	

ARTICLE XVI—	
 	

GRIEVANCE PROCEDURE	
 	

12
	

ARTICLE XVII—	
 	

PAST PRACTICE	
 	

12
	

ARTICLE XVIII—	
 	

NO STRIKE OR LOCKOUT	
 	

12
	

ARTICLE XIX—	
 	

TEAMSTER 401(k)	
 	

13
	

ARTICLE XX—	
 	

VOLUNTARY BONUS	
 	

13
	

ARTICLE XXI—	
 	

INVENTORY	
 	

13
	

ARTICLE XXII—	
 	

WORK SHOES	
 	

13
	

ARTICLE XXIII—	
 	

LAYOFF NOTICE	
 	

13
	

ARTICLE XXIV—	
 	

WAGE INCREASES	
 	

13
	

ARTICLE XXV—	
 	

SEVERANCE	
 	

14
	

ARTICLE XXVI—	
 	

SICK LEAVE	
 	

14
	

ARTICLE XXVII—	
 	

CONTRACT EXPIRATION	
 	

15
	

ARTICLE XXVIII—	
 	

TERM OF AGREEMENT	
 	

15

        AGREEMENT made this    day of            , 2002, retroactive to and effective as of the 10th day of
November, 2002, by and between EON
LABS INC., whose principal office is located at 227-15 North Conduit Avenue, Laurelton, New York 11413, hereinafter designated as the "EMPLOYER"; and DRUG, CHEMICAL, COSMETIC,
PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES LOCAL 815, AFFILIATED WITH THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS; whose office is located at 467 Sylvan Avenue, Englewood Cliffs, New Jersey
07632; hereinafter designated as the "UNION". 

        IN
CONSIDERATION of the premises and of the mutual and reciprocal promises herein made and obligations herein assumed, as more fully hereinafter set forth, the parties agree as follows: 

        ARTICLE
I—RECOGNITION: The Employer recognizes the Union as the sole and exclusive collective bargaining agent for all employees, excluding executives,
non-producing supervisors, office and clerical employees, salesmen, graduate chemists, and the employee listed on Schedule "A", which schedule is attached hereto and made a part hereof.
Whenever the word "employees" is used in this Agreement, it shall refer to all such employees in the bargaining unit as defined above. 

        All
employees shall, as a condition of continued employment, become and remain members of the Union in good standing after they have completed thirty days of employment or thirty days
after execution of this Agreement, whichever is later; provided, however, that no employee shall be removed from his employ under this Paragraph so long as he continues to tender uniform dues and
initiation fees to the Union after such thirty-day period. Any employee who fails to maintain his membership to the extent of not paying uniform dues and initiation fees after such
thirty-day period, shall be discharged by the Employer within forty-eight hours after receipt of notice from the Union that such employee has not paid uniform dues and initiation fees. 

        There
shall be a trial period of thirty days for all new employees commencing with the first day of employment, and during such trial period the Employer may discharge such employee, and
such discharge shall be final and shall not be subject to arbitration as provided herein. Trial periods may be extended an additional 30 days by mutual agreement between the Employer, Employee,
and the Union in writing. The Union shall not unreasonably withhold its consent to such a request. 

        ARTICLE
II—DISCHARGE FOR CAUSE: The Employer may discharge any employee at any time for just cause. In the event the employee is proven to have committed an act amounting to
dishonesty or criminal negligence or violates any section of the Food, Drug and Cosmetic Act, or other similar Federal, State or Local Health Laws, the Employer may summarily discharge such employee. 

        ARTICLE
III—SENIORITY: (A) Seniority shall consist of length of continuous service with the Employer from the date of employment as an employee within the bargaining
unit on a plant-wide basis, for the purpose of computing benefits of employment accruing to employees under this Agreement. Plant-wide seniority will be observed in layoffs,
reduction of working forces and recall, providing and depending upon the skill and ability of an employee to perform the necessary and required duties of work to be performed. 

        (B)  Seniority
shall cease and be ended: 

        1.    If
the employee shall voluntarily leave the service of the Employer; 

        2.    If
the employee is discharged from employment for just cause; 

        3.    If
the employee, after being laid off, shall fail to report to the Employer's employment office within three working days after receipt of a notice in writing by the
Employer, which notice shall be sent by registered mail to the employee's last post office address; 

        4.    If
the employee has been laid off for a continuous period of one year or more; 

        5.    If
the employee is granted a leave of absence by the Company and does not report back to work on the designated day. 

 

        (C)  The
Employer may reduce the number of employees employed in the plant, or the number of employees in any particular operation, whenever it may deem it necessary in
accordance with Article III as stated herein. 

        (D)  The
Employer shall post all job openings covered by the Collective Bargaining Agreement, and give all current employees not less than seventy-two hours in
which to express interest. 

        Selection
for the position shall continue to be based on the Employer's assessment of candidates' (both internal and external) overall suitability, including skill, ability, training,
and Employer needs. Seniority shall be considered where the Employer's assessment of suitability is that candidates are equally suited for the position. Employees who successfully bid upwards shall
receive a wage increase of $0.50 per hour. Such hourly increase shall be effective at the end of a thirty-day evaluation period and shall be retroactive to the first day in the new
position. There shall be no lateral bids. 

        ARTICLE
IV—DUES CHECKOFF: The Employer shall deduct uniform membership dues and initiation fees from the employees' salaries, and make such deductions from the first full
week's payroll in each month and transmit all such funds deducted no later than the fifteenth day of each month. All funds deducted from the employees' salaries for the payment of such dues and
initiation fees shall be held in trust by the Employer and shall be considered at all times the property of the Union, provided, however, that prior to making such deductions the Employer has received
from each employee on whose account such deductions are made a written assignment, which shall not be irrevocable for a period of more than one year or beyond the termination date of this Agreement,
whichever occurs sooner, and which may contain a clause that such assignment shall be automatically renewed for additional periods of one year, unless the employee shall terminate such assignment in
writing within thirty days prior to any expiration date thereof. 

        ARTICLE
V—ALLIED HEALTH & WELFARE FUND: It is hereby agreed by and between the respective parties that, commencing with the week ending November 15, 2002 (being
a continuation of contributions previously made), the Employer shall pay to the Allied Welfare Fund the sum of Seventy-Five ($75.00) Dollars, and commencing with the week ending
November 14, 2003 the sum of Seventy-Seven ($77.00) Dollars, and commencing with the week ending November 12, 2004 the sum of Seventy-Nine ($79.00) dollars each and every
week for each employee who is employed within the bargaining unit, commencing with the first day of employment of such employee, regardless of whether such employee is a member of the Union and
regardless of the number of hours worked during the week. The Employer shall submit to the Fund a list of the employees for whom such payments are made. Vacations, holidays and sick leave with pay
shall be deemed time worked. The Employer's payroll records, social security records or other pertinent data shall be open for inspection and audit by the Fund upon demand. Such payments shall be made
directly to the Allied Welfare Fund and shall be held subject to the provisions of a trust indenture effective January 26, 1954 and any amendments, changes or additions thereto. The Fund shall
be managed and administered by a board of trustees equally representative of the employers and the Union. In the event the Employer and the Union trustees deadlock on the administration of the Fund,
they shall agree on an impartial umpire to decide such dispute; or in the event of their failure to agree within a reasonable length of time, an impartial umpire shall, on petition of either trustee,
be appointed by the District Court of the United States for the district where the Fund has its principal office. The trustees shall make provisions for an annual
audit of the Fund. A statement of the results shall be available for inspection by interested persons at the principal office of the Fund and at such other places as may be designated by the trustees. 

        Such
contributions shall be used for the purpose of providing insurance, welfare, major medical insurance and similar benefits for employees employed by the Employer, employees employed
by all other employers similarly situated, their families, and the payment of reasonable administrative expenses of the Fund; and shall, in addition, be used and disbursed by the trustees pursuant to
the 

2

 

terms, conditions and provisions of the trust indenture or any amendments, changes or additions thereto; and the rules, regulations and resolutions adopted thereunder. Neither the Union, nor any
member of the Union individually or collectively; nor any International Union, nor any body with which the Union may be affiliated; nor any participating employer individually or collectively; nor any
combination thereof; nor any association, corporation, group, entity, person or trust; nor any successor or assign thereof, either directly or indirectly, shall have any right, title, interest or
claim in or to the Fund or any part thereof; nor to any accounting, supervision or control thereof, of whatsoever kind or nature. All monies, contributions, property, assets of the Fund and those
hereafter acquired; and the ownership control and the administration of the Fund shall irrevocably, inseparably and forever remain vested exclusively in the trustees of the Fund. No employee of any
participating employer; nor any employee of the Union; nor any person claiming by, through or under such employee, either directly or indirectly, shall have any right, title, interest or claim in or
to the Fund or to any part thereof; nor to any accounting, supervision or control thereof of whatsoever kind or nature; nor any claim against the Union, participating employers, or the trustees, or to
the contributions of his or her employer to the Fund or any assets or monies held by the Fund except such benefits as are provided for by the plan and/or by the rules and regulations from time to time
established and promulgated by the trustees in accordance with the powers granted by the trust indenture, as the same may be amended or modified from time to time. The discretion of the trustees as to
the administration, use and disbursement of the Fund shall be final and conclusive. 

        All
payments shall be due and payable on the first day of each month, for the preceding month. If the Employer fails to make a payment or payments required hereunder, on or before the
tenth day of the succeeding month, then the Trustees may require, and the Employer agrees to pay, interest on any unpaid balance at the applicable rate as permitted by law. In addition, the Employer
specifically agrees that it shall be liable for all auditing expenses, collection costs and legal fees incurred by the Union or by the Trustees of the Fund for the collection of such payments. 

        From
and out of the contributions made to the Allied Welfare Fund as specified above, Eight Dollars per employee per week shall be unconditionally and irrevocably allocated and paid to
the Union Mutual Medical Fund subject to the provisions of a trust indenture effective September 6, 1978 and any amendments, changes or additions thereto, for the benefit of retired employees
of the Employer and retired employees of all other employers similarly situated and their families who are receiving pension benefits from the Union Mutual Fund, and those employees of the Employer
and of all other employers similarly situated whose pension benefits from the Union Mutual Fund have been vested and who, in either case, are and remain members in good standing of the Union Mutual
Benefit Association. All sums contributed to the Union Mutual Medical Fund and the affairs of said Fund shall be managed and administered by a Board of Trustees equally representative of the employers
and the
participants. All of the foregoing conditions and provisions applicable to the Allied Welfare Fund shall be equally applicable to the Union Mutual Medical Fund. 

        ARTICLE
VI—UNION MUTUAL FUND: It is hereby agreed by and between the respective parties that, commencing with the effective date of this Agreement (being a continuation of
contributions previously made), the Employer shall pay to the Union Mutual Fund the sum of Twenty-Four Dollars each and every week for each employee who is employed within the bargaining
unit commencing with the first day of employment of such employee, regardless of whether such employee is a member of the Union and regardless of the number of hours worked during the week; and the
Employer shall submit to the Fund a list of the employees for whom such payments are made. Vacations, holidays and sick leave with pay shall be deemed time worked. The Employer's payroll records,
social security records and other pertinent data shall be open for inspection and audit by the Fund upon demand. Such payments shall be made directly to the Union Mutual Fund and held subject to the
provisions of a trust indenture effective November 1, 1955 and any amendments, changes or additions thereto. The Fund shall be managed and administered by a board of trustees equally 

3

 

representative of the employers and the Union. In the event the Employer and the Union trustees deadlock on the administration of the Fund, the two shall agree on an impartial umpire to decide such
dispute; or in the event of their failure to agree within a reasonable length of time, an impartial umpire shall, on petition of either trustee, be appointed by the District Court of the United States
for the district where the Fund has its principal office. The trustees shall make provisions for an annual audit of the Fund, a statement of the result of which shall be available for inspection by
interested persons at the principal office of the Fund and at such other places as may be designated by the trustees. 

        The
Fund shall be used for the purpose of providing pensions and/or annuities and similar benefits for employees employed by the Employer, employees employed by all other employers
similarly situated, the payment of reasonable administrative expenses of the Fund and shall, in addition, be used and disbursed by the trustees pursuant to the terms, conditions and provisions of the
trust indenture, or any amendments, changes or additions thereto; and the rules, regulations and resolutions adopted thereunder. Neither the Union, nor any member of the Union individually or
collectively; nor any International Union; nor any body with which the Union may be affiliated; nor any participating employer individually or collectively; nor any combination thereof; nor any
association, corporation, group, entity, person or trust; nor any successor or assign thereof either directly or indirectly, shall have any right, title, interest or claim in or to the Fund, or any
part thereof; nor to any accounting, supervision or control thereof of whatsoever kind or nature. It is understood and agreed that the Employer and all other employers similarly situated may have a
continuing financial obligation pursuant to the provisions of the Employee Retirement Income Security Act of 1974, in the event of termination or partial termination of the Fund. All monies,
contributions, property, assets of the Fund and those hereafter acquired; and the ownership, control and the administration of the Fund shall irrevocably, inseparably and forever remain vested
exclusively in the trustees of the Fund. No employee of any participating employer; nor any employee of the Union; nor any person claiming by, through or under such employee, either directly or
indirectly, shall have any right, title, interest or claim in or to the Fund or any part thereof; nor to any accounting, supervision or control thereof of whatsoever kind or nature; nor any claim
against the Union, participating employers or the trustees; nor to the contributions of his or her employer to the Fund; nor to any assets or monies held by the Fund except such benefits as are
provided by the plan and/or by the rules and regulations from time to time established and promulgated by the trustees in accordance with the powers granted by the trust
indenture, as the same may be amended or modified from time to time. The discretion of the trustees as to the administration, use and disbursement of the Trust Fund shall be final and conclusive. 

        All
payments shall be due and payable on the first day of each month, for the preceding month. If the Employer fails to make a payment or payments required hereunder, on or before the
tenth day of the succeeding month, then the Trustees may require, and the Employer agrees to pay, interest on any unpaid balance at the applicable rate as permitted by law. In addition, the Employer
specifically agrees that it shall be liable for all auditing expenses, collection costs and legal fees incurred by the Union or by the Trustees of the Fund for the collection of such payments. 

        ARTICLE
VII—WORKDAY/WORKWEEK: (A) For full time employees, forty hours shall constitute the normal work week, Monday through Friday inclusive, eight hours per day.
The number of hours to be worked shall be designated by the Employer and may be varied from time to time as the Employer may find it necessary. 

4

  

        (B)  Hours
worked in excess of forty hours in any workweek or eight hours in any one day shall be paid for at one and one-half times the regular
straight-time rate of pay; it being specifically understood that there shall be no duplicate of pay for overtime work. Excused absences shall be deemed time worked insofar as the
provisions of this Paragraph are concerned. 

        (C)  All
hours worked on Sunday shall be paid for at the rate of double time. 

        (D)  Each
employee shall be allowed three minutes at the start of his or her work shift for clocking-in, and said three minutes will not be deducted from the
employee's pay. 

        (E)  Each
employee arriving more than three minutes late at the start of his or her work shift, shall clock-in at the next quarter hour immediately after their
arrival. 

        (F)  Each
employee shall receive a five minute wash-up period each day, at the conclusion of his or her work shift. 

        ARTICLE
VIII—Shift Differential: (A) Shift designations will be based on an employee's regularly scheduled start time, as follows: 

	Shift
	 	Regularly Scheduled Start Time

	First	 	6:00 a.m. – 10:00 a.m.
	

Swing	
 	

10:01 a.m. – 2:00 p.m.
	

Second	
 	

2:01 p.m. – 6:00 p.m.
	

Third	
 	

6:01 p.m. – 5:59 a.m.

        (B)  Shift
differential will be paid for time actually worked and paid time off (including holidays, vacations and sick days as follows: 

	Shift
	 	Differential

	First	 	—
	

Swing	
 	

5%
	

Second	
 	

10%
	

Third	
 	

15%

        (C)  Work
performed at the end of an employee's regularly scheduled work shift will be deemed a continuation of the employee's shift and overtime shall be paid based on the
employee's base rate of pay (including shift differential, if applicable) and will not be considered a new (later) shift. By way of example, an employee regularly scheduled to work 8:00 a.m. to
4:30 p.m. is first shift. If such employee continues and works from 4:30 p.m. until 6:30 p.m., such additional two hours will be paid at the rate of one and one-half
times the first shift, and not the second shift, rate. 

        (D)  Work
performed prior to an employee's regularly scheduled work shift will be paid at the rate applicable to the employee's regularly scheduled work shift. By way of
example, an employee regularly scheduled to work 3:00 p.m. to 11:30 p.m. is second shift. If such employee reports early and works from 1:00 p.m. to 11:30 p.m., such
additional two hours (1:00 p.m. to 3:00 p.m.) will be paid at the rate of one and one-half times the second shift rate. 

        ARTICLE
IX—Shift Assignments and Starting Times: (A) The Employer has the absolute right to determine the number of employees and the work to be performed on any
shift. 

        (B)  (1)
In the event the Employer seeks to fill positions on a particular shift, it will first seek volunteers from among those employees qualified to perform the work.
Selections from an excess 

5

 

of qualified volunteers will be on the basis of greatest seniority. In the event of insufficient qualified volunteers, qualified employees will be re-assigned involuntarily on the basis
of least seniority. No employee will be so involuntarily reassigned on less than five (5) working days' notice. 

        (B)  (2)
The provisions of Sub-Section B(1) notwithstanding, the Employer may involuntarily reassign qualified employees between shifts, out of seniority
order, each for periods of up to two (2) months when, in the Employer's good faith business judgment, such action is necessary to allow the shifts in question to operate efficiently. No
employee will be so involuntarily reassigned on less than five (5) working days' notice. 

        (C)  Within
each shift, the Employer may set and assign staggered or common scheduled starting times, the number of employees to be scheduled to start at any particular time,
and each individual employee's starting time, regardless of seniority, provided, however, that the Employer seeks first to fill particular start times with volunteers from among qualified employees
before it assigns or re-assigns an employee a start time involuntarily. No employee will be so involuntarily reassigned on less than five (5) working days' notice. 

        ARTICLE
X—PART TIME EMPLOYEES: (A) The Employer shall have the right to hire and utilize part-time employees to be assigned to the Employer's second or
third shifts, as elsewhere defined. For purposes of this provision, "part-time" shall mean an employee generally assigned, on average, to one or more work days per week generally
consisting, on average, of six (6) hours or fewer. 

        (B)  Part-time
employees shall accrue seniority on the same basis as, but be maintained on a separate seniority list from regular employees. The trial period
shall be measured in terms of workdays for part-time employees. The Employer shall contribute to the Welfare, Pension and Vacation funds on behalf of part-time employees as for
regular employees. Part-time employees shall earn vacation pay and receive holiday pay and other benefits on a pro rata basis based on their regularly assigned hours.
Part-time employees shall receive premium, as opposed to straight time pay for overtime in excess of 8 hours per day. 

        (C)  Part-time
employees shall be laid off in reverse order of their part-time seniority. However, no full-time employee may be laid off
if any part-time employee is then employed in the same department as then constituted by the Company. A full-time employee whose position is eliminated in a layoff may bump
into a part-time position, providing and depending upon the skill and ability of the full-time employee to perform the necessary and required duties of work to be performed,
and shall, for bumping purposes, be deemed to have greater part-time seniority than any part-time employee. A laid off full-time employee who bumps into a
part-time position does not as a result forfeit his or her recall rights with respect to full-time employment pursuant to Article III. 

6

 

        ARTICLE
XI—HOLIDAYS: (A) Each full-time employee covered by this Agreement shall receive eight hours of straight-time pay at his or her
regular hourly rate of pay (including shift differential, where applicable) for the following holidays: 

	2 0 0 3

	New Year's Day	 	Wednesday	 	January 1
	Martin Luther King	 	Monday	 	January 20
	Presidents' Day	 	Monday	 	February 17
	Good Friday	 	Friday	 	April 18
	Memorial Day (Observed)	 	Monday	 	May 26
	July 4th	 	Friday	 	July 4
	Labor Day	 	Monday	 	September 1
	Columbus Day (Observed)	 	Monday	 	October 13
	Thanksgiving	 	Thursday

Friday	 	November 27

November 28
	Christmas Eve	 	Wednesday	 	December 24
	Christmas	 	Thursday	 	December 25
	Floating Holiday in lieu of Birthday	 	Friday	 	December 26

7

 

	2 0 0 4

	New Year's Day	 	Thursday	 	January 1
	Floating Holiday (In Lieu of Birthday)	 	Friday	 	January 2
	Martin Luther King	 	Monday	 	January 19
	Presidents' Day	 	Monday	 	February 16
	Good Friday	 	Friday	 	April 9
	Memorial Day (Observed)	 	Monday	 	May 31
	July 4th	 	Monday	 	July 5
	Labor Day	 	Monday	 	September 6
	Columbus Day (Observed)	 	Monday	 	October 11
	Thanksgiving	 	Thursday

Friday	 	November 25

November 26
	Christmas	 	Thursday	 	December 23

(For Christmas Day December 25)
	Christmas Eve	 	Friday	 	December 24

	2 0 0 5

	New Year's Day	 	Friday	 	December 31

(For Saturday January 1)
	Martin Luther King	 	Monday	 	January 17
	Presidents' Day	 	Monday	 	February 21
	Good Friday	 	Friday	 	March 25
	Memorial Day (Observed)	 	Monday	 	May 30
	July 4th	 	Monday	 	July 4
	Labor Day	 	Monday	 	September 5
	Columbus Day (Observed)	 	Monday	 	October 10
	Thanksgiving	 	Thursday

Friday	 	November 24

November 25
	Floating Holiday in lieu of Birthday	 	Thursday	 	December 22
	Christmas Eve	 	Friday	 	December 23

(For Saturday December 24)
	Christmas	 	Monday	 	December 26

(For Christmas Day Sunday December 25)

provided,
however, that the employee is not absent from work his or her regular working day preceding or his or her regular working day following the said holiday. It is to be understood that Friday
is the regular working day preceding Monday and Monday is the regular working day following Friday. 

        (B)  The
Employer may keep its plant closed on any Monday if any one of the above-listed holidays falls on a Tuesday, or may keep its plant closed on any Friday if any one of
the above listed holidays falls on a Thursday. Such action shall not deprive an employee of absolute pay for holidays listed herein. 

8

 

        ARTICLE
XII—VACATION: (A) It is hereby agreed by and between the respective parties that effective as of November 10, 2002, (being a continuation of
contributions previously made) the Employer shall contribute to the Vacation Fringe Benefit Fund the sum of Ten and Four-Tenths Per Cent (10.4%) of the Employer's total, gross,
straight-time payroll expense for each employee covered by the Agreement regardless of whether or not any such employee is a member of the Union and regardless of the number of hours
worked during the week. Such payments shall be made weekly for the last preceding payroll week. A list containing the names and straight-time, weekly earnings of each employee in the
bargaining unit shall accompany each such payment. The Employer's payroll records, social security records and other pertinent data shall be open for inspection and audit by the Fund upon demand. Such
payments shall be made directly to the Vacation Fringe Benefit Fund and shall be held subject to the provisions of a trust indenture dated February 17, 1971 and any amendments, changes or
additions thereto. 

        The
Fund shall be managed and administered by a board of trustees equally representative of the employers and the Union. In the event the Employer and the Union trustees deadlock on the
administration of the Fund, they shall agree on an impartial umpire to decide such dispute; or in the event of their failure to agree within a reasonable length of time, an impartial umpire shall, on
petition of either trustee, be appointed by the District Court of the United States for the district where the Fund has its principal office. The trustees shall make provisions for an annual audit of
the Fund. A statement of the results shall be available for inspection by interested persons at the principal office of the Fund and at such other places as may be designated by the trustees. 

        The
Fund shall be used for the purpose of providing annual and supplementary vacation benefits, jury duty reimbursement and for such approved similar and related purposes and benefits,
and for the payment of the reasonable administrative expenses of the Fund, as the trustees may determine. By executing this Agreement, the Employer hereby authorizes the Trustees of the Vacation
Fringe Benefit Fund, on its behalf, as its express agent, and in its name and stead, to remit to the appropriate Federal
taxing authorities, the Employer's share of any FICA taxes owed by the Employer as a result of vacation and/or fringe benefit payments made by the Fund to employees of the Employer, together with the
employee's share of any such taxes, and, where applicable to remit to the appropriate State taxing authorities the disability taxes owed as a result of such payments. Similarly, by executing this
Agreement, the Employer hereby authorizes the Trustees of the Fund on its behalf, as its express agent and in its name and stead, to issue to the appropriate governmental agencies and to its employees
receiving vacation and/or fringe benefit payments through the Fund, Federal, State and City earnings statements showing gross wages, FICA tax withheld, FICA wages, State income tax withheld and local
tax withheld as a result of such vacation and/or fringe benefit payments by the Fund. The Trustees of the Fund shall have no obligation to report wages earned by the Employer's employees, except such
wages as are transmitted to the Employer's employees by the Fund. 

        All
monies paid to the Fund shall be used and disbursed by the trustees pursuant to the terms, conditions and provisions of the trust indenture or any amendments, changes or additions
thereto; and the rules, regulations and resolutions adopted thereunder. Neither the Union, nor any member of the Union individually or collectively; nor any International Union; nor any body with
which the Union may be affiliated; nor any participating Employer individually or collectively, nor any combination thereof; nor any association, corporation, group, entity, person or trust; nor any
successor or assign thereof either directly or indirectly, shall have any right, title, interest or claim in or to the Fund or any part thereof, nor to any accounting, supervision or control thereof,
of whatsoever kind or nature. 

        All
monies, contributions, property, assets of the Fund and those hereafter acquired and the ownership, control and the administration of the Fund shall irrevocably, inseparably and
forever remain vested exclusively in the trustees of the Fund. No employee of any participating employer; nor any employee of the Union; nor any person claiming by, through or under such employee,
either directly or indirectly, shall have any right, title, interest or claim in or to the Fund or to any part thereof; nor to 

9

 

any accounting, supervision or control thereof, of whatsoever kind or nature; nor any claim against the Union, participating employers or the trustees, or to the contributions of his or her Employer
to the Fund or any assets or monies held by the Fund except such benefits as are provided for by the Fund and/or by the rules and regulations from time to time established and promulgated by the
trustees in accordance with the powers granted by the trust indenture as the same may be amended or modified from time to time. The discretion of the trustees as to the administration, use and
disbursement of the Fund shall be final and conclusive. 

        All
payments shall be due and payable on the first day of each week, for the preceding week. The foregoing notwithstanding, however, if the Employer fails to make all payments required
hereunder, on or before the tenth day of the month for the preceding month, then the Trustees may require, and the Employer agrees to pay, interest on any unpaid balance at the applicable rate as
permitted by law. In addition, the Employer specifically agrees that it shall be liable for all auditing expenses, collection costs and legal fees incurred by the Union or by the Trustees of the Fund
for the collection of such payments. 

        Conditioned
upon the Employer's timely payment in full to the Fund of all of its obligations as specified herein, no further liability whatsoever shall attach hereunder to the Employer;
and no claim can, shall or may be made by any employee against the Employer based upon the terms hereof for any reason whatsoever. 

        (B)  For
employees employed prior to November 10, 1987, the amount of vacation shall be determined as of July 1st of each year in accordance with the following
schedule: 

	 	        Less than six months of employment	 	None
	 	

        Six months but less than one year of employment	
 	

One week (40 hours)
	 	

        One year but less than five years of employment	
 	

Three weeks (120 hours)
	 	

        Five years but less than twenty years of employment	
 	

Four weeks (160 hours)
	 	

        Twenty or more years of employment	
 	

Five weeks (200 hours)

        For
employees employed on and after November 10, 1987, vacations shall be determined as of July 1st of each year in accordance with the following schedule: 

	 	        Less than six months of employment	 	None
	 	

        Six months but less than one year of employment	
 	

One week (40 hours)
	 	

        One year but less than five years of employment	
 	

Two weeks (80 hours)
	 	

        Five years but less than eight years of employment	
 	

Three weeks (120 hours)
	 	

        Eight years but less than twenty years of employment	
 	

Four weeks (160 hours)
	 	

        Twenty or more years of employment	
 	

Five weeks (200 hours)

        In
determining eligibility for vacation leaves, all computations shall be based upon each employee's total length of employment with the Employer. No deductions shall be made from an
employee's accumulated service except for periods of nonemployment by the Employer. Such deductions shall be made in accordance with the provisions of the trust indenture, and/or resolutions adopted
by the trustees. 

10

   
        Full power and authority will be lodged in the trustees of the Vacation Fringe Benefit Fund to determine the extent of service credits to be allocated to each employee as well as the
rules and regulations pursuant to which employees will be paid for any earned vacation pay. 

        In
accordance with the rules and regulations of the Fund and at such intervals as they determine appropriate, the trustees of the Fund shall transmit to each employee on whose behalf
contributions have been made to such Fund, an amount equal to the sum of such employee's vacation leave entitlement multiplied by such employee's regular straight-time, hourly rate of pay
as of the date of such employee's vacation leave. This sum will be diminished by the amount of any vacation payments made by the Fund to such employee during the preceding vacation year (i.e. the
period from July 1 of the preceding year through June 30 of the current year). 

        Part-time
employees shall receive vacation leave and vacation pay on a pro rata basis. 

        Vacations
shall be taken during the months of July through September of each and every year. Vacation schedules shall be designed by the Employer at least thirty days prior to
July 1. Vacations shall be taken during the designated time only, except where permission is given in writing by the Company to be taken at some other time. The Employer shall have the right to
designate a two or three week period during which the plant shall close in order that all employees may take a common vacation. 

        Vacation
time in excess of two weeks need not be consecutive, unless permission is so granted by the Employer. The Company agrees to schedule the excess of vacation time before the
anniversary date of the contract, giving due consideration to production schedules and employees' wishes. The Employer shall have the right to direct the Vacation Fringe Benefit Fund to, and the Fund
shall, upon such direction, pay for the third, fourth and fifth week's vacation, in lieu of vacation time off, providing it is agreeable to the employee. 

        Employees
whose employment terminates prior to July 1 of any year, other than by virtue of a discharge for just cause, shall receive vacation pay on a pro-rata basis
dating from the prior vacation cutoff. 

        ARTICLE
XIII—BREAKS: Each full-time employee shall receive two ten minute paid rest periods during each work shift, approximately at the mid-point of
the first half of each shift and approximately at the mid-point of the second half of each shift at times to be designated by the Employer. 

        Part-time
employees who work in excess of four hours on any shift shall receive one ten minute paid rest period during each such shift. 

        ARTICLE
XIV—MANAGEMENT RIGHTS: (A) The Union recognizes that management of the business of the Employer rests solely and exclusively with the Employer; and the
Employer shall have the exclusive control and supervision of its operations; and the Union agrees not to interfere with any of the Employer's rights and prerogatives. 

        (B)  The
Union recognizes that it is to the interest of both the Union and the Employer that the Employer shall receive the Union's full cooperation in maintaining operating
efficiency and agrees to cooperate with the Employer to obtain the greatest amount of production in the Employer's operations consistent with sound working conditions and other provisions of this
Agreement. 

        (C)  The
Employer shall be the sole judge of the ability of any employee to perform the work covered by the contract or the agreed wage rate or wage scale, and
reclassification in accordance therewith shall be in the sole discretion of the Employer in the first instance, subject, however, to the grievance procedure where an employee claims he has the ability
to perform the work. 

11

 

        (D)  The
Employer shall in all instances be the sole and exclusive judge of the fitness and competency of any new employee during their trial period for the work to be
performed, and the Employer shall have the sole discretion in the selection and choice of new employees. 

        (E)  The
Employer and the Union agree to cooperate in continuing to maintain policies and practices which prevent discrimination against any employee or applicant for
employment because of race, color, religion, sex, age or national origin, or any other basis prohibited by applicable law, and further to affirmatively cooperate in the implementation of Presidential
Executive Order #11246, its regulations, and other lawful requirements intended to prevent any such discrimination. 

        ARTICLE
XV—UNION VISITATION: After reporting his presence at the office, any authorized representative of the Union shall be permitted to enter the Employer's place of
business at any time for the adjustment of disputes, grievances or any other matters that may require a representative's presence. 

        ARTICLE
XVI—GRIEVANCE PROCEDURE: Should any dispute arise concerning the application, interpretation, effect, purpose or breach of any term or condition of this Agreement,
including any amendment or addendum to this Agreement, or in the event that there shall exist any claim, demand, dispute, or controversy between the parties hereto, the parties hereto shall first
attempt to settle and adjust such claim, demand, dispute, or controversy by negotiation. In the event that said matter shall not be completely settled and adjusted, the parties agree to submit the
question, including any damages that have been suffered, to arbitration in the following manner: 

        Step
1: A grievance by the Union shall be submitted to the Employer's designated representative within one (1) month of the occurrence of the event in issue or it shall be deemed
waived. If the Union and the Employer representatives cannot resolve the matter within two (2) weeks, it may be submitted to Step 2. 

        Step
2: A grievance not settled at Step 1 shall be submitted to arbitration within two (2) months of the occurrence of the event in issue or it shall be deemed waived. A demand
for arbitration shall be submitted to the American Arbitration Association ("AAA") within the City of New York, with a copy to the other party, for designation of an arbitrator pursuant to the AAA
Labor Arbitration Rules. The arbitrator so designated shall serve as sole arbitrator of the dispute between the parties, and shall designate the time and place of the arbitration, provided that the
place of the arbitration shall be within the City of New York. 

        In
the event of the failure of either party to be present at the time and place designated for the arbitration, then the arbitrator shall have the right to listen to the party appearing
at the time and place for arbitration and shall have the power to render a decision based on the testimony before him. The decision of the arbitrator shall be final and binding upon both parties
hereto and may be entered as a final decree or judgment in the Supreme Court of the State of New York, Queens County. The cost of arbitration shall be borne equally by the Employer and the Union. It
is the intent of the parties that all disputes between them regarding this Agreement, including any amendment or addendum, shall be submitted to arbitration between them as provided herein, and that
no defense to prevent the holding of such arbitration shall be permitted. Service of any document or notice referred to herein, or service of any notice required by law in connection with arbitration
proceedings may be made by registered or certified mail. 

        ARTICLE
XVII—PAST PRACTICE: All good conditions, customs and privileges enjoyed by the employees prior to the execution of this Agreement, except as limited, changed or
abolished by the terms of this Agreement, shall continue in full force and effect without interruption or suspension as though they were actually enumerated herein. 

        ARTICLE
XVIII—NO STRIKE OR LOCKOUT: (A) Since it is the intent of the parties of this Agreement that the procedures herein provided shall serve as a means for
peaceful settlement of all 

12

 

differences, disputes, complaints and grievances that may arise between them, it is agreed that the Union shall not authorize nor encourage nor participate in any strike or work-stoppage
or slowdown, and the Employer agrees that there shall be no lockouts. 

        (B)  In
the event of any unauthorized strike or stoppage during the life of this Agreement, there shall be no liability on the part of the Union or any of its officers,
agents or members not participating in the strike or stoppage. The Union agrees and undertakes to discipline any of its members who engage in any unauthorized strike or stoppage, and agrees that the
Employer may discharge any employee who participates in such unauthorized strike or stoppage. 

        ARTICLE
XIX—TEAMSTER 401(k): The Employer hereby agrees to participate in the Teamsters-National 401(k) Savings Plan (the "Plan") on behalf of all employees represented for
purposes of collective bargaining under this Agreement. 

        The
Employer shall make or cause to be made payroll deductions from participating employees' wages, in accordance with each employee's salary deferral election, subject to compliance
with ERISA and the relevant tax code provisions. The Employer shall forward withheld sum to State Street Bank or its successor at such time, in such form and manner as required pursuant to the Plan
and Declaration of Trust (the "Trust"). 

        The
Employer shall execute a Participation Agreement with Local Union No. 815 and the Trustees of the Plan evidencing employer participation in the Plan effective prior to any
employee deferral being received by the Plan. 

        In
addition, the Employer agrees to require the payroll system to provide separate paycheck deductions so that the Plan may allow participant loans. 

        ARTICLE
XX—VOLUNTARY BONUS: Except as specified in Article XXIV, the payment by the Employer of Christmas or other bonuses is entirely voluntary and solely in the
discretion of the Employer, any such payment is not deemed part of the pay structure, and any such payment is not deemed a precedent. 

        ARTICLE
XXI—INVENTORY: In the event the Employer decides to conduct its inventory on a regularly scheduled work day, no employee shall lose any pay as a result of the taking
of such inventory. 

        ARTICLE
XXII—WORK SHOES: Where work shoes or other special footwear are required, such footwear shall be supplied by the employee, who shall be reimbursed an amount up to the
average retail sale price for a standard pair of such footwear. In the event such footwear wears out or is damaged, such shall be replaced by the employee who shall be reimbursed by the Employer in
accordance with the formula referred to above, provided that the wear or damage has been shown to the Employer prior to replacement, and provided further that such damage is not due to the employee's
negligence. 

        ARTICLE
XXIII—LAYOFF NOTICE: The Shop Steward, the Union and each initially affected employee will be notified five days in advance of any layoff due to lack of work, except
in the case of emergency which is beyond the control of the Employer. 

        ARTICLE
XXIV—WAGE INCREASES: (A) Effective as of and retroactive to November 10, 2002, each employee on the Employer's payroll as of such date shall receive a
general wage increase of Twenty-Eight (28.00) Dollars per week ($.70 per hour). 

        (B)  On
or before December 16, 2002, each employee who is on the payroll as of November 10, 2002, shall receive a bonus of $400. 

        (C)  Effective
November 10, 2003, each employee on the Employer's payroll as of such date shall receive a general wage increase of Twenty-Four ($24.00)
Dollars per week ($.60 per hour). 

13

 

        (D)  Effective
November 10, 2004, each employee on the Employer's payroll as of such date shall receive a general wage increase of Twenty-Four ($24.00)
Dollars per week (.60 per hour.). 

        (E)  On
or before December 16, 2003 and again on or before December 16, 2004, each employee on the Employer's payroll as of November 10, 2003 and
November 10, 2004, respectively shall receive a bonus in accordance with the bonus schedule set forth below: 

	Bonus Schedule

	Less than six months of employment	 	$	50.00
	

Six months but less than one year of employment	
 	
$	

100.00
	

One year or more of employment	
 	
$	

150.00

        FICA
payments on these bonuses shall be the Employer's responsibility. 

        (F)  Effective
November 10, 2002, the following starting and progression rates of pay shall prevail: 

	Start
	 	After 30 Days
	 	After 6 Months

	$	320.00	 	$	330.00	 	$	340.00

        (G)  Employees
hired at the thirty day rate or higher shall receive a wage increase of Four Dollars ($4.00) per week ($.10 per hour) after thirty days of employment and all
general wage increases thereafter. 

        The
minimum starting rate shall be at least one dollar ($1.00) per hour ($40.00 per week) in excess of the Federal or New York State minimum wage (whichever shall be higher). The thirty
day rate shall always be Ten Dollars ($10.00) per week in excess of the starting rate. The six month rate shall always be Twenty Dollars ($20.00) per week in excess of the starting rate. 

        (H)  Employees
on the payroll as of the date of any general wage increases shall receive either the general wage increase or their appropriate progression rate, whichever
shall be greater. 

        ARTICLE
XXV—SEVERANCE: In the event the Employer terminates its operations in whole or part or moves them in whole or part to another location, more than thirty miles
straight-line distance from its resent location in Laurelton, New York, all employees who lose their jobs as a direct result of the termination and, in the case of a relocation as above
described, employees who cannot accompany their jobs to the new location, shall be entitled to severance payments in the amount of one week's pay or proportionate part thereof for each year of
employment or proportionate part thereof. The Employer agrees to be solely responsible for all severance payments. 

        ARTICLE
XXVI—SICK TIME: All employees who have been employed for twelve months or longer as of the start of any contract year, shall be entitled to five (5) days of
paid sick leave during such contract year. 

        Newly
hired employees, and employees employed for less than twelve months as of the start of any contract year shall not be entitled to any paid sick leave during the first six months of
their employment. After six months, but less than eight months of employment, such employees shall be entitled to one (1) day of paid sick leave. After eight months but less than ten months of
employment, such employees shall be entitled to one additional day of paid sick leave. After ten months, but less than twelve months of employment, such employees shall be entitled to one additional
day of paid sick leave. After twelve months of employment, such employees shall be entitled to five (5) days of sick leave minus any days of sick leave utilized during the current contract
year. Thereafter, all such employees shall receive five days of paid sick leave during each succeeding contract year. 

14

 

        All
employees shall be reimbursed on the anniversary of this Agreement for all unused sick leave. Such employees shall receive one day's wages for each day of unused sick leave to be
paid at the rate of pay effective at the time said sick leave was unused. 

        Employees
shall not be required to provide a doctor's note or other substantiating evidence in order to be eligible to receive sick leave pay, provided however, that employees shall
telephone the Employer as early as practicable, but in no event later than one-half hour prior to the start of the employee's scheduled shift on the first day of any illness to advise the
Employer concerning the absence and its anticipated length. Failure to so notify the Employer may result in a disallowance of sick pay. 

        The
foregoing notwithstanding, the Employer may require a doctor's note in the event an employee claims more than three (3) consecutive days of paid sick leave. The Employer may
also require
employees absent for three (3) consecutive days or more as a result of illness to provide a certificate of fitness to return to work. 

        ARTICLE
XXVII—CONTRACT EXPIRATION: On November 10, 2005, and at the expiration of each annual period thereafter, the Union shall have the right to reopen the contract
in order to renegotiate wages and other benefits for all employees. Should the parties fail to agree, the Union shall have the right to terminate this Agreement and may thereafter engage in a strike
or similar concerted work stoppage. 

        ARTICLE
XXVIII—TERM OF AGREEMENT: This Agreement shall become effective as of November 10, 2002 and shall remain operative and binding upon the parties thereto, their
heirs, successors, assignees, administrators, and trustees in bankruptcy up to and including November 9, 2005, and shall automatically continue thereafter for annual periods, and may terminate
by one party giving the other at least sixty days' notice by registered mail prior to any expiration period of its intention to terminate this Agreement. 

15

 

        IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands this 30th day of December, 2002. 

	DRUG, CHEMICAL, COSMETIC, PLASTICS

AND AFFILIATED INDUSTRIES

WAREHOUSE EMPLOYEES LOCAL 815,

AFFILIATED WITH THE INTERNATIONAL

BROTHERHOOD OF TEAMSTERS	 
	

By:	
 	

/s/  GEORGE L. MIRANDA      
 George L. Miranda, Secretary-Treasurer/CEO	

 
	

By:	
 	

/s/  ROBERT BELLACH      
 Robert Bellach, President	

 

	

EON LABS INC.	

 
	
By:	
 	

/s/  WILLIAM F. HOLT      	
 	

VP Finance	

 
	 	 	
	 
	 	 	Employer	 	Title	 

16

LOCAL UNION NO. 815
 DRUG CHEMICAL COSMETIC PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES

Affiliated with the
 International Brotherhood of Teamsters 

GENERAL OFFICE: 467 SYLVAN AVENUE    •    ENGLEWOOD CLIFFS, NEW JERSEY 07632 

	[Teamster's

Logo]	 	PHONE: (201) 567-5552 • (212) 695-3985 • FAX (201) 567-2435

EON LABS, INC.

SCHEDULE "A"  

Excluded Employee:  

Frank
S. Mellone 

LOCAL UNION NO. 815
 DRUG CHEMICAL COSMETIC PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES

Affiliated with the
 International Brotherhood of Teamsters 

GENERAL OFFICE: 467 SYLVAN AVENUE    •    ENGLEWOOD CLIFFS, NEW JERSEY 07632 

	[Teamster's

Logo]	 	PHONE: (201) 567-5552 • (212) 695-3985 • FAX (201) 567-2435

November 10, 2002 

Eon
Labs, Inc.

227-15 North Conduit Avenue

Laurelton, NY 11413 

Gentlemen:

This
is to confirm our understanding that your contributions to the Vacation Fringe Benefit Fund consist of two components. The first component (vacation component) is to be contributed in the amount
of Eight and Four Tenths Per Cent (8.4%) of your gross, straight-time payroll expense for bargaining-unit employees and is intended to cover the cost of vacation payments made
in accordance with the terms of the collective bargaining agreement, including disability taxes and the Employer's and employees' share of FICA taxes. 

The
second component (fringe component) in the amount of Two Per Cent (2%) of your gross, straight-time, payroll expense for bargaining-unit employees is intended to cover the
cost of supplementary vacation benefits, jury duty reimbursement and other approved similar and related purposes and benefits, as the trustees may determine. 

Your
vacation component contributions will be subject to an annual audit and review. In the event that your vacation component contributions, including disability taxes and the Employer's and
employees' share of FICA taxes, are less than the annual vacation payments made by the Fund in accordance with the terms of the collective bargaining agreement, you will be required to remit the
balance immediately. 

Furthermore,
by signing this letter, you specifically agree to adjust your vacation component contribution rate, upon notification from the Union or the employer that such adjusted contribution rate
is necessary to avoid future deficits or surpluses. In the event that your vacation component contributions exceed the vacation payments made by the Fund in accordance with the terms of the collective
bargaining agreement, including disability taxes and the Employer's and employees' share of
FICA taxes, the balance will be refunded to you on or before January 30th of the succeeding calendar year. 

If
the foregoing conforms with your understanding, please sign below where indicated. 

	ACCEPTED AND APPROVED:

Drug, Chemical, Cosmetic, Plastics and

Affiliated Industries Warehouse Employees

Local 815, Affiliated with the International

Brotherhood of Teamsters	 
	

By:	
 	

/s/  ROBERT BELLACH      
 Robert Bellach, President	

 
	

By:	
 	

/s/  GEORGE L. MIRANDA      
 George L. Miranda, Secretary-Treasurer/CEO	

 

	

ACCEPTED AND APPROVED:

EON LABS INC.	

 
	
By:	
 	

/s/  WILLIAM F. HOLT      	
 	

VP Finance	

 
	 	 	
	 
	 	 	Employer	 	Title	 

LOCAL UNION NO. 815
 DRUG CHEMICAL COSMETIC PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES

Affiliated with the
 International Brotherhood of Teamsters 

GENERAL OFFICE: 467 SYLVAN AVENUE    •    ENGLEWOOD CLIFFS, NEW JERSEY 07632 

	[Teamster's

Logo]	 	PHONE: (201) 567-5552 • (212) 695-3985 • FAX (201) 567-2435

November 10,
2002 

Eon Labs, Inc.

227-15 North Conduit Avenue

Laurelton, NY 11413 

Gentlemen:

This
is to confirm our understanding that, except as required by applicable law, the Employer will not be required to make a contribution to the Union Mutual Fund or to the Allied Welfare Fund on
behalf of any employee for any week for which such employee receives no pay. 

	ACCEPTED AND APPROVED:

Drug, Chemical, Cosmetic, Plastics and

Affiliated Industries Warehouse Employees

Local 815, Affiliated with the International

Brotherhood of Teamsters	 
	

By:	
 	

/s/  ROBERT BELLACH      
 Robert Bellach, President	

 
	

By:	
 	

/s/  GEORGE L. MIRANDA      
 George L. Miranda, Secretary-Treasurer/CEO	

 

	

ACCEPTED AND APPROVED:

EON LABS INC.	

 
	
By:	
 	

/s/  WILLIAM F. HOLT      	
 	

VP Finance	

 
	 	 	
	 
	 	 	Employer	 	Title	 

LOCAL UNION NO. 815
 DRUG CHEMICAL COSMETIC PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES

Affiliated with the
 International Brotherhood of Teamsters 

GENERAL OFFICE: 467 SYLVAN AVENUE    •    ENGLEWOOD CLIFFS, NEW JERSEY 07632 

	[Teamster's

Logo]	 	PHONE: (201) 567-5552 • (212) 695-3985 • FAX (201) 567-2435

November 10, 2002 

Eon
Labs, Inc.

227-15 North Conduit Avenue

Laurelton, NY 11413 

Gentlemen:

You
are hereby notified that the Union has no interest in inspecting or utilizing your books, records or other data for any purpose other than the computation of welfare and pension payments, and will
not seek to inspect any records other than those immediately necessary for computation. 

If
the following conforms with your understanding, please sign below where indicated. 

	ACCEPTED AND APPROVED:

Drug, Chemical, Cosmetic, Plastics and

Affiliated Industries Warehouse Employees

Local 815, Affiliated with the International

Brotherhood of Teamsters	 
	

By:	
 	

/s/  ROBERT BELLACH      
 Robert Bellach, President	

 
	

By:	
 	

/s/  GEORGE L. MIRANDA      
 George L. Miranda, Secretary-Treasurer/CEO	

 

	

ACCEPTED AND APPROVED:

EON LABS INC.	

 
	
By:	
 	

/s/  WILLIAM F. HOLT      	
 	

VP Finance	

 
	 	 	
	 
	 	 	Employer	 	Title	 

LOCAL UNION NO. 815
 DRUG CHEMICAL COSMETIC PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES

Affiliated with the
 International Brotherhood of Teamsters 

GENERAL OFFICE: 467 SYLVAN AVENUE    •    ENGLEWOOD CLIFFS, NEW JERSEY 07632 

	[Teamster's

Logo]	 	PHONE: (201) 567-5552 • (212) 695-3985 • FAX (201) 567-2435

November 10, 2002 

Eon
Labs, Inc.

227-15 North Conduit Avenue

Laurelton, NY 11413 

Gentlemen:

This
is to confirm our understanding that, the Employer agrees that insofar as is practicable except as provided in Collective Bargaining Agreement Articles VIII and IX, the least-senior employee will
be utilized first in the event that it is necessary to transfer employees temporarily from one job to another. 

	ACCEPTED AND APPROVED:

Drug, Chemical, Cosmetic, Plastics and

Affiliated Industries Warehouse Employees

Local 815, Affiliated with the International

Brotherhood of Teamsters	 
	

By:	
 	

/s/  ROBERT BELLACH      
 Robert Bellach, President	

 
	

By:	
 	

/s/  GEORGE L. MIRANDA      
 George L. Miranda, Secretary-Treasurer/CEO	

 

	

ACCEPTED AND APPROVED:

EON LABS INC.	

 
	
By:	
 	

/s/  WILLIAM F. HOLT      	
 	

VP Finance	

 
	 	 	
	 
	 	 	Employer	 	Title	 

LOCAL UNION NO. 815
 DRUG CHEMICAL COSMETIC PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES

Affiliated with the
 International Brotherhood of Teamsters 

GENERAL OFFICE: 467 SYLVAN AVENUE    •    ENGLEWOOD CLIFFS, NEW JERSEY 07632 

	[Teamster's

Logo]	 	PHONE: (201) 567-5552 • (212) 695-3985 • FAX (201) 567-2435

November 10, 2002 

Eon
Labs, Inc.

227-15 North Conduit Avenue

Laurelton, NY 11413 

Gentlemen:

As
per our memorandum of Agreement ratified on November 8, 2002, this letter is to confirm our understanding that Local 815 will have approximately 200 copies of the
2002 - 2005 Eon Labs, Inc. collective bargaining agreement printed in booklet form. 

It
is further understood that upon completion of such printing, Eon Labs will reimburse Local 815 50% of the cost of such printing. 

If
the foregoing conforms with your understanding, please sign below where indicated. 

	ACCEPTED AND APPROVED:

Drug, Chemical, Cosmetic, Plastics and

Affiliated Industries Warehouse Employees

Local 815, Affiliated with the International

Brotherhood of Teamsters	 
	

By:	
 	

/s/  ROBERT BELLACH      
 Robert Bellach, President	

 
	

By:	
 	

/s/  GEORGE L. MIRANDA      
 George L. Miranda, Secretary-Treasurer/CEO	

 

	

ACCEPTED AND APPROVED:

EON LABS INC.	

 
	
By:	
 	

/s/  WILLIAM F. HOLT      	
 	

VP Finance	

 
	 	 	
	 
	 	 	Employer	 	Title	 

LOCAL UNION NO. 815
 DRUG CHEMICAL COSMETIC PLASTICS AND AFFILIATED INDUSTRIES WAREHOUSE EMPLOYEES

Affiliated with the
 International Brotherhood of Teamsters 

GENERAL OFFICE: 467 SYLVAN AVENUE    •    ENGLEWOOD CLIFFS, NEW JERSEY 07632 

	[Teamster's

Logo]	 	PHONE: (201) 567-5552 • (212) 695-3985 • FAX (201) 567-2435

November 10, 2002 

Eon
Labs, Inc.

227-15 North Conduit Avenue

Laurelton, NY 11413 

Gentlemen:

Recognizing
the industry in which Eon Labs operates, and as per the memorandum of agreement between Local 815 and Eon Labs ratified by the members on November 8, 2002, the Union agrees that,
upon notification from the Employer, it shall negotiate in good faith a drug and alcohol testing program which shall be incorporated into the collective bargaining agreement. 

If
the foregoing conforms with your understanding, please sign below where indicated. 

	ACCEPTED AND APPROVED:

Drug, Chemical, Cosmetic, Plastics and

Affiliated Industries Warehouse Employees

Local 815, Affiliated with the International

Brotherhood of Teamsters	 
	

By:	
 	

/s/  ROBERT BELLACH      
 Robert Bellach, President	

 
	

By:	
 	

/s/  GEORGE L. MIRANDA      
 George L. Miranda, Secretary-Treasurer/CEO	

 

	

ACCEPTED AND APPROVED:

EON LABS INC.	

 
	
By:	
 	

/s/  WILLIAM F. HOLT      	
 	

VP Finance	

 
	 	 	
	 
	 	 	Employer	 	TitleExhibit 10.12

 

 

THIRD
AMENDMENT TO SUBLEASE AGREEMENT

 

This Third Amendment to
Sublease Agreement (the “Amendment”), which is dated for reference purposes
only as of May 1, 2002 (the “Amendment Effective Date”), is made with
reference to that certain Sublease Agreement with an Effective Date of December
1, 2000 in effect by and between InsWeb Corporation, a Delaware corporation
(“Sublessor”) and Leap Corporation, now known as Seven Networks, Inc., a
Delaware corporation (“Sublessee”), as amended by the First Amendment dated
December 1, 2000 and as further amended by the Second Amendment dated January
17, 2001, (collectively the “Sublease”), consisting of approximately thirty-two
thousand four hundred fifty (32,450) square feet of space (the “Sublet Space”)
on the first and fourth floors of the building located at 901 Marshall, Redwood
City, California (the “Property”), as more particularly described in the
Sublease.  All capitalized terms not
otherwise defined in this Amendment shall have the meanings given to them in
the Sublease.

 

This Amendment shall amend
and modify the terms and conditions of the Sublease, and, to the extent that
any of the terms and conditions of this Amendment conflict with the terms and
conditions set forth in the Sublease, the terms and conditions of this
Amendment shall control.  Except as
amended herein, the Sublease shall remain in full force and effect.
Concurrently herewith, Sublessor and Landlord are entering into a  written consent to this Amendment (the
“Consent”) which provides, among other things, for Landlord’s consent to the
transaction contemplated herein, the payment of any sublease profits resulting
from this transaction, and the Landlord’s confirmation of the status of the
Master Lease as represented herein and the Landlord’s agreement to recognize
Sublessee as a direct lessee under the terms of this Sublease in the event that
the Master Lease terminates for any reason other than as a result of
Sublessee’s actions or inactions which constitute a breach of its obligations under
this Sublease, and to seek the execution of a nondisturbance agreement from
Landlord’s lender on its standard form.

 

             NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties amend the
Sublease as follows:

1.     Sublet Space.   The Sublet Space shall be expanded and
shall include the entire building located on the Property, consisting of
approximately sixty-five thousand (65,000) rentable square feet of  office space and all Improvements to the
Sublet Space constructed and/or owned by Sublessor.

 

2.     Sublease Term Expiration Date.
The Sublease Term Expiration Date shall be September 29, 2008.

 

3.     Sublease Term.  The Term of the Sublease shall be 94 months
minus one day, from the Effective Date.

 

4.     Condition of Sublet Space.  All of the terms and conditions of Section 2
of the Sublease ( Condition of Sublet Space) shall apply to any additions to
the Sublet Space added by this Amendment.

 

 

 

 

1

 

5.     Base Rent. Throughout the term of
this Sublease, subject to Section 8 below, Sublessee shall pay to Sublessor as
Base Rent under this Sublease the same sums as Sublessor is obligated to pay to
Landlord as “Base Rent” under the Master Lease (as “Base Rent” is defined in
paragraph 3 of the Master Lease) which Base Rent payable by Sublessee to
Sublessor shall periodically increase in the same manner and at the same times
as does the “Base Rent” set forth in the Master Lease payable by Sublessor to
Landlord.

 

6.     Additional Rent.  In addition to the Base Rent, subject to
Section 8 below, Sublessee shall pay to Sublessor as additional rent from and
after the Amendment Effective Date throughout the term of this Sublease, an
amount equal to Fourteen Thousand Six Hundred Twenty Five and No/100 Dollars
($14,625.00)  (calculated at $0.22 1⁄2 per
rentable square foot of the Sublet Space) per month (“Additional Rent”).

 

7.     Net Rental.  Sublessee shall be responsible for one
hundred (100%) percent of all costs and expenses of every kind and nature which
may be imposed, at any time, on Sublessor pursuant to the Master Lease (except
for Sublessor’s Base Rent, as defined in the Master Lease and charges arising
out of any willful or negligent act or breach of the Master Lease or the
Consent by Sublessor) including, but not limited to, Operating Costs,
Landlord’s Expenses, Maintenance and Repairs, Utilities, Insurance and Taxes
and Assessments, all as defined in the Master Lease (collectively, “Operating
Expenses).

 

8.     Payment to Landlord.  The Base Rent and the Additional Rent, as
well as the Operating Expenses that would otherwise be, payable by Sublessee to
Sublessor under this Sublease shall be paid by Sublessee directly to Landlord
as set forth in the Consent, the payment of which shall fully satisfy
Sublessee’s obligations to pay Base Rent, Additional Rent and Operating
Expenses under this Sublease.  All such
Base Rent, Additional Rent and Operating Expenses shall be paid to Landlord
without deduction by either Sublessee or Sublessor for Permitted Transfer Costs
relating to this Sublease (as that phrase is defined in paragraph 13 of the
Master Lease).  Other than in
satisfaction of Sublessor’s obligations to Landlord under the Master Lease
relating to the payment of “Base Rent,” “Additional Rent” and “Operating
Expenses” thereunder, Sublessor shall have no right to or interest in the Base
Rent , Additional Rent and Operating Expenses paid by Sublessee to Landlord
pursuant to the Consent.

 

9.     Security Deposit.  Concurrent with the execution of this
Amendment and the Consent, Sublessee shall deliver to Landlord a Security
Deposit in an amount equal to seven months of Sublessor’s Base Rent under this
Sublease in the sum of One Million Sixty Five Thousand Two Hundred and Eight and
No/100 Dollars ($1,065,208.00) (calculated by summing Sublessee’s Base Rent for
one month of each of the next seven years). A portion of the Security Deposit
will be refunded to Sublessee, as long as Sublessee is not in default under
either the Master Lease or the Sublease at the time of refund, as follows:

	
   

  	
   

  	
  May 1, 2003

  	
   

  	
  $136,927.00

  
	
   

  	
   

  	
  May 1, 2004

  	
   

  	
  $141,719.00

  
	
   

  	
   

  	
  May 1, 2005

  	
   

  	
  $146,679.00

  

 

 The balance of the Security Deposit shall be
refunded to Sublessee within 60 days after

 

 

 

2

 

Sublessee has vacated the Sublet Space, less only such
amounts as are reasonably necessary to remedy any default under the Master
Lease or the Sublease or to compensate Landlord or Sublessor for all damages
incurred by Landlord or Sublessor as a result of any default by Sublessee under
the Master Lease or the Sublease.

 

At any time on or after the Amendment Effective Date, as long as
Sublessee is not in default under the Master Lease or the Sublease, Sublesee
may, at its option, make the Security Deposit in the form of an irrevocable
standby letter of credit in a form and from a bank reasonably acceptable to
Landlord, and otherwise meeting the criteria set forth in the Sublease relating
to letters of credit.  Upon the deposit
of the Security Deposit in the form of an acceptable letter of credit, Landlord
shall return to Sublessee within five (5) business days thereafter, the cash
Security Deposit then held by Landlord.

 

The Security Deposit shall be held by Landlord for the joint benefit of
both Landlord and Sublessor, and Landlord agrees to make the Security Deposit
or any portion thereof available to Sublessor upon written demand by Sublessor
of a default by Sublessee under the Sublessee, which sums shall be applied
towards the cure of such default.  In
the event of a default by Sublessee, under the terms of the Master Lease or the
Sublease, Landlord, being a joint beneficiary of said Security Deposit, shall
have the full and complete authority to draw on the Security Deposit, as it
deems necessary, and without the consent of Sublessor or Sublessee, to cure
such default of Sublessee.  Sublessee
agrees to pay to Landlord the amount necessary to restore the Security Deposit
to the sum as it existed immediately prior to any application thereof within
five (5) days of written demand therefor.

 

10.   Insweb
Signage.  Sublessor shall have
through and including September 15, 2002 to remove its signage from the
Property and repair and restore that portion of the Property to which the
signage was affixed to its former condition or better, including but not
limited to the repair of the building skin and any damage caused by water
seepage (the “Construction”). All work required in connection with said
Construction, shall be performed only by competent contractors licensed under
the laws of the State of California and shall be performed in accordance with
written contracts with those contractors. Landlord shall have the right to
approve the contractor selected by Sublessor or Sublessee, which approval will
not be unreasonably withheld, by giving notice of such approval or disapproval
within ten (10) days of receiving a request for approval.  Landlord shall have the right to inspect the
Construction using its own experts at any point during the Construction
process. The Construction shall be performed in accordance with all applicable
laws, ordinances, regulations and orders of all federal, state, county, or
local governmental agencies or entities having jurisdiction over the Property.
Sublessor is solely responsible for obtaining the necessary permits and
licenses.  Landlord agrees to execute
any application or authorization that may be necessary or appropriate and to
cooperate with Sublessor in obtaining such permits and licenses. Sublessee
agrees to assume, for the benefit of Landlord only, full and complete
responsibility, including financial liability, for completion of the
Construction in the event Sublessor is unable to complete or otherwise has not
completed said Construction prior to September 15, 2002.  In the event of such failure by Sublessor,
Landlord shall give notice in writing to Sublessee of such failure and
Sublessee shall have ninety (90) days to complete the Construction.  Sublessor hereby consents to such assumption
by Sublessee and agrees to protect, save, defend, indemnify and hold harmless
Sublessee from and

 

 

 

3

 

against any and all loss, cost, expense, damage,
liability or claim therefor related to or in any way connected with the failure
of Sublessor to complete the Construction in accordance with this
Paragraph.  Sublessor agrees to protect,
save, defend, reimburse, indemnify and hold Landlord harmless from any and all
mechanics liens, claims, actions, causes, damages and injuries, expenses,
including attorney’s fees, penalties or other costs associated with or in any
way related to the Construction. 
Further, Sublessor agrees to protect, save, defend, reimburse, indemnify
and hold Sublessee harmless from any and all mechanics liens, claims, actions,
causes, damages and injuries, expenses, including attorney’s fees, penalties or
other costs associated with or in any way related to the Construction.

 

11.   Deletions
to the Sublease. Section 20 of the Sublease, Sublessee’s Option to Renew/Right
of First Offer, is hereby deleted in its entirety.

 

12.   Additions to the Sublease.   Paragraph 3(c) of the Sublease is modified
as follows:

 

a.     Paragraph 3, Rent, Section 3.3, Payment  of the Master Lease, which was previously
excluded from incorporation in the Sublease shall now be included and
incorporated in the Sublease.

 

b.     Paragraph 9, Indemnification,
Section 9.1, General, of the Master Lease, which was previously excluded
from incorporation in the Sublease shall now be included and incorporated in
the Sublease.

 

13.   Representations of Sublessor.  Sublessor represents and warrants to
Sublessee that:

 

a.     The copy of the Master Lease, along with
all amendments thereto, attached as Exhibit A is a true, complete and accurate
copy of the Master Lease currently in effect and that there exists no other
agreement affecting Sublessor’s tenancy under the Master Lease.

 

b.     Other than the existing Sublease between
the parties, Sublessor has not heretofore assigned or sublet all or any portion
of its interest in the Master Lease.

 

c.     Sublessor covenants that except in
connection with the signage as set forth in Section 10 hereof, the Master Lease
is in full force and effect and no default exists under the Master Lease, nor
have any acts or events occurred which, with the passage of time or the giving
of notice or both, could become defaults.

 

d.     To the best of Sublessor’s knowledge, and
excluding any right or interest of Landlord’s lenders, no person, firm or
entity other than Landlord or Sublessor has any right, title or interest in the
Master Lease.

 

e.     Sublessor has the full right, legal power
and actual authority to enter into this Amendment without the consent of any
person, firm or entity.

 

f.      The condition precedent created by section
1.2 of the Master Lease has been satisfied.

 

 

 

4

 

g.     Subject to written confirmation prior to
the Amendment Effective Date, the Commencement Date of the Master Lease is
October 1, 1998, and the Initial Term of the Master Lease will expire on
September 30, 2008.

 

h.     Landlord has fully completed construction
of the Premises in accordance with section 2.2 of the Master Lease and
elsewhere. Neither Landlord nor Sublessor has any payment or reimbursement
obligations to one another in connection with the construction of the Premises.

 

i.      Current monthly Base Rent paid to Landlord
is $136,927.00; current monthly operating expenses and tax reimbursement paid
directly to Landlord for the month of May 2002 was $4,229; monthly operating
expenses paid directly by Sublessor for the month of May 2002 was $36,952.

 

j.      Sublessor is not required to post any
security deposit with Landlord under the Master Lease as of the Amendment
Effective Date.

 

14.   Brokerage Fees. 
The parties acknowledge that they have engaged real estate
brokers or other advisors for this transaction and that BT Commercial is
representing the Sublessor.  Each party
shall pay their respective brokers or advisors a transaction fee per separate
agreements. Each party agrees to indemnify the other party against any loss,
cost, or expense, including attorney fees and court costs relating to claims by
brokers engaged by the indemnifying party.

 

15.   Counterparts.  This Amendment may be executed in
counterparts with the same effect as if all parties hereto had executed the
same document.  All counterparts shall
be construed together and shall constitute a single document.

 

16.   Entire Agreement, Modification, and
Waiver.  This Amendment, the
Sublease, and the Consent constitute the entire understanding and agreement
between the parties hereto regarding the subject matter of this Amendment, and
supersede and replace all prior agreements and understandings, whether oral or
written.  The provisions of this
Amendment cannot be amended, supplemented, or changed, nor can any of its
provisions be waived, except by a writing signed by the party against whom
enforcement is sought.  No waiver of a
breach of this Amendment shall be deemed to constitute a waiver of a further
breach, whether similar or dissimilar.

 

17.   Incorporation of Reference.  All of the Exhibits attached hereto or
referred to herein and all documents in the nature of such Exhibits, when
executed, are by this reference incorporated herein and made a part of this
Amendment.

 

18.   Further Assurances.  In a timely fashion, each party shall
execute and deliver such further instruments, documents or assurances, and take
such further action, as shall be required to carry out the purposes and intent
of this Amendment.

This Amendment shall be
effective as of May 1, 2002.

 

5

 

IN WITNESS
WHEREOF, the parties have caused this Amendment to be executed as of the ____
day of July, 2002, to be effective as of May 1, 2002.

	
  SUBLESSOR

  	
   

  	
   

  	
  SUBLESSEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INSWEB CORPORATION

  	
   

  	
  SEVEN NETWORKS, INC.

  	
   

  
	
  a Delaware corporation

  	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/  WILLIAM D. GRIFFIN

  	
   

  	
   

  	
   

  	
  /s/  KEVIN LAUGHLIN

  	
   

  
	
  By:

  	
  William D. Griffin 

  	
   

  	
   

  	
  By:

  	
  Kevin Laughlin

  	
   

  
	
  Its:

  	
  Chief Financial Officer

  	
   

  	
   

  	
  Its:

  	
  Chief Financial Officer

  	
   

  
									

 

 

 

 

 

 

 

 

6

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