Document:

Exhibit
10.12

 

Amendment, dated as of September 30, 2002 (the “Amendment”),
by and among DepoMed, Inc., a California corporation (the “Company”), Elan
International Services, Ltd., a Bermuda exempted limited liability company (“EIS”),
Elan Pharma International Limited, an Irish private limited liability company
(“EPIL”),
and Elan Corporation, plc, an Irish public limited company (“Elan”).

 

RECITALS:

Whereas, the
Company, EIS, EPIL and Elan entered into a Funding Agreement, dated January 21,
2000 (the “Funding Agreement”),
which set forth the terms and conditions of each of the parties subsequent
funding obligations to Depomed Development Ltd., a Bermuda exempted limited
liability company (“Newco”);

 

                WHEREAS, EIS agreed to lend the Company up to
U.S.$8,010,000 in order for the Company to meet its subsequent funding
obligations to Newco pursuant to the terms of a Convertible Promissory Note,
dated January 21, 2000, for up to U.S.$8,010,000 in the principal amount
outstanding (the “Note”);

                WHEREAS, EIS and EPIL entered into and Assignment
and Assumption (the “Assignment”), as of January 1, 2001, in
which EIS assigned its rights to the Funding Agreement and the Note to EPIL and
EPIL assumed the liabilities of EIS with respect to the Funding Agreement and
the Note;

                WHEREAS, pursuant to Section 3.10 of the Funding
Agreement, the Funding Agreement may be amended upon the written consent of the
parties to the Funding Agreement; and

                WHEREAS, pursuant to Section 9(d) of
the Note, the Note may be amended upon the written consent of the parties to
the Note.

                NOW, THEREFORE, in consideration of the foregoing premises
and the mutual covenants contained herein, the sufficiency of which is hereby
acknowledged, the parties hereby agree as follows:

 

                                1.             Amendment to the Funding
Agreement.  The parties agree that
Section 1.1 of the Funding Agreement shall be deleted in its entirety and
replaced with the following:

 

“1.1.        It is estimated that
Newco will require an additional U.S.$9,741,753
to commence development of the Products based upon the DMI
Intellectual Property, the Elan Intellectual Property and/or the Newco
Technology (the “Subsequent Funding”). On and after the Closing Date and
until September 30, 2002, EIS and DMI may provide to Newco, by way of
contributed surplus or loan, as may be agreed to by EIS and DMI,

 

 

 

 

                                                up to an aggregate maximum amount of
U.S.$9,741,753, such funding to be provided by EIS and DMI
to Newco on a pro rata basis based on their respective equity interests, on a
fully-diluted basis.”

 

                2.             Amendment to the Note.  (a) 
The parties agree that Section 2(a) of the Note shall be deleted in its
entirety and replaced with the following:

 

                “(a) From and
after the date hereof and until September 30, 2002, disbursements shall be made
by EIS to the Company hereunder in minimum increments of U.S.$250,000 (except
in the event that an amount less than U.S.$250,000 shall be remaining and
available for funding hereunder, in which case such lesser amount may be funded
hereunder); provided,
that the Company shall have, prior to each such disbursement, delivered a
written request therefor to the Holder in the form attached hereto as Exhibit
A (the “Disbursement Notice”), together with an Officer’s
Certificate confirming that as of such date no Event of Default exists
hereunder; the Holder shall, subject to the terms and conditions hereof, fund
the applicable amount within 10 business days of the receipt of the
Disbursement Notice, subject to the receipt by the Holder of any required
approvals under the Mergers and Takeovers (Control) Acts 1978-1996; provided,
further, that the Company shall
be entitled to receive up to one disbursement per each 90-day period from and
after the date hereof; provided, further, that disbursements shall be made by
EIS to the Company after September 30, 2002 for activities completed by Newco
prior to September 30, 2002 in respect of which a Disbursement Notice is
delivered by the Company to EIS on or before November 30, 2002 or, if later, 5
business days after Newco provides the Company with such information, including
information regarding Newco expenses incurred by Elan, as is reasonably
necessary for the Company to prepare a Disbursement Notice for Newco activities
completed on or before September 30, 2002. Notwithstanding any other provision
herein disbursements made in respect of expenses for 2002 shall not exceed
$2,430,977.26.  A “business day” is any
day that commercial banks are open for the transaction of business in the City
of New York and in the City of San Francisco.”

 

(b)           The parties agree that Section 6 of the Note shall be
deleted in its entirety and replaced with the following:

 

                “The Company shall use the
proceeds of this Note solely for developmental funding of Newco; provided,
that the Board of Directors of Newco shall have determined that such
developmental funding is necessary (which approval shall in all events include
the consent of at least one director designated by the Company and at least one
director designated by EIS); provided, further, that the Company shall not
use the proceeds of this Note as reimbursement for any developmental funding
independently contributed to Newco by the Company.  Accordingly, total disbursements hereunder shall not in any event
exceed the amount of Development Funding funded by the Company to Newco
pursuant to the Funding Agreement.”

 

 

 

 

 

                3.             Except as set forth above, the
provisions of the Funding Agreement and the Note shall remain in full force and
effect as originally stated therein. Such amended provisions shall take effect
as if originally a part of the agreement to which they apply.

 

                IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
as of the date first above written.

 

	
   

  	
  DEPOMED, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  JOHN F. HAMILTON

  	
   

  
	
   

  	
   

  	
  Name:  John F. Hamilton

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  Chief Financial Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ELAN
  INTERNATIONAL SERVICES, LTD.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  DEBRA MOORE BURYJ

  	
   

  
	
   

  	
   

  	
  Name: Debra
  Moore Buryj

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ELAN
  PHARMA INTERNATIONAL LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  SEAMUS MULLIGAN

  	
   

  
	
   

  	
   

  	
  Name: Seamus Mulligan

  	
   

  	
   

  
	
   

  	
   

  	
  Title:
  _____________________

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ELAN
  CORPORATION, PLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  SEAMUS MULLIGAN

  	
   

  
	
   

  	
   

  	
  Name: Seamus Mulligan

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Executive Vice
  PresidentCONFIDENTIAL TREATMENT REQUESTED

 

Exhibit 10.13

 

WAIVER AND TERMINATION AGREEMENT DATED 8 NOVEMBER, 2002 (THE
“EFFECTIVE DATE”)

 

RECITALS:

 

Whereas, Elan
Corporation, plc, an Irish public limited company (“Elan”), DepoMed, Inc., a California
corporation (the “Company”),
Elan Pharma International Limited, a private limited company incorporated under
the laws of Ireland (“EPIL”), and DepoMed Development Ltd., a
Bermuda exempted limited liability company (“Newco”), entered into a License Agreement,
dated January 21, 2000 (the “Elan License Agreement”), which set forth the terms and
conditions of a license from Elan to Newco of certain intellectual property of
Elan.

 

                Whereas, the Company has entered that certain
Development and License Agreement, dated as of May 28, 2002 (the “BLI License Agreement”),
by and between the Company and Biovail Laboratories Incorporated (“BLI”) and that
certain Stock Purchase Agreement, dated as of May 28, 2002, by and between the
Company and BLI (together with the BLI License Agreement, the “BLI Agreements”).

 

                Whereas, EPIL terminated the [***] (as
defined in the Elan License Agreement) by notice in writing to [***] dated 26
August 2002 (the “[***]”), and notified Newco and Depomed of
this action.

 

                Whereas, Elan, EPIL, Newco and Depomed
desire to terminate the license to Newco of the rights under the [***] (as
defined in the Elan License Agreement) and certain additional rights granted to
Newco under the Elan License Agreement.

                Whereas, Elan desires to waive certain
of its accrued rights under the Elan License Agreement up to the Effective Date
that may arise as a result of the transactions contemplated by the BLI
Agreements up to the Effective Date and DepoMed desires to waive certain of its
accrued rights under the Elan License Agreement up to the Effective Date that
may arise as a result of the termination of the [***].

 

WAIVER AND
TERMINATION:

 

                1.             Waiver by Elan.

 

Elan hereby irrevocably waives any
accrued rights Elan may have under Section 8.4 of the Elan License Agreement up to the Effective Date to terminate the Elan
License Agreement as a result of any or all of the transactions by Depomed from the beginning of time up to the Effective Date under by the BLI
Agreements, and Elan fully
and finally

 

 

 

THE SYMBOL [***] IS USED TO INDICATE THAT A
PORTION OF THE EXHIBIT HAS BEEN OMITTED AND FILED SEPERATELY WITH THE
COMMISSION.  CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

 

releases and discharges Depomed from any and all manner of actions or
claims that Elan may have by reason thereof against Depomed from the beginning
of time to the Effective Date under the Elan License Agreement.

 

2.                                       Termination of the EPIL Sub-License and
Waivers.

 

2.1                                 With reference to Clause 1 hereof, Elan,
EPIL, Newco and Depomed hereby agree to terminate the EPIL Sub-License (as
defined in the Elan License Agreement) and the EPIL License (as defined in the
Elan License Agreement) insofar as the EPIL License licensed the EGTS Patents
and the EGTS Know-How to Newco with effect from the [***].

 

2.2                                 With effect from the [***], the
definition of “Elan Intellectual Property” in the Elan License Agreement shall
be amended by the deletion of paragraph (iii) and all references to “Elan
Intellectual Property” in the Elan License Agreement and the JDOA (including
without limitation in Clauses 4.1 and 4.2 of the Elan License Agreement) shall
thereafter be construed accordingly.

 

2.3                                 DepoMed and Newco
hereby irrevocably waive any accrued rights DepoMed or Newco may have under the
Elan License Agreement (and/or the Subscription, Joint Development And Operating
Agreement dated January 21, 2000 (“JDOA”)) from the beginning
of time up to
the Effective Date arising out of the termination by Elan, EPIL or any of its
affiliates of the [***] and Depomed and Newco fully and finally release and discharge Elan, EPIL and
any
of its affiliates from any and all manner of actions or
claims that Depomed or Newco may have by reason thereof against Elan, EPIL and any of its affiliates from the beginning of time to the
Effective Date under the Elan License Agreement and/or the
JDOA.

.

 

3                                          Waivers and Releases.

 

The parties hereto acknowledge and agree that the
waivers and releases contained herein are specific in nature, do not constitute
any general waiver or amendment of the provisions of Elan License
Agreement, the JDOA or otherwise, and no such waiver or release shall be deemed to be a
waiver or release of any future breach or failure to perform of any other right
under arising under this Elan License Agreement, the JDOA or otherwise.

 

4                                          Intellectual Property.

 

4.1                                 As provided in Clause
3.1.2 of the Elan License Agreement, Elan shall own all the Elan Improvements
(as defined in the Elan License Agreement) relating to the GR Know-How, and the
EGTS Patents and the
EGTS Know-How (each as defined in the Elan License Agreement).

 

 

 

THE SYMBOL [***] IS USED TO INDICATE THAT A
PORTION OF THE EXHIBIT HAS BEEN OMITTED AND FILED SEPERATELY WITH THE
COMMISSION.  CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

2

CONFIDENTIAL TREATMENT REQUESTED

 

 

The Elan Improvements described in this Clause 4.1
include, but are not limited to, the data, know-how, materials and other
information listed in Schedule 1 hereto.

 

 

 

 

 

 

THE SYMBOL [***] IS USED TO INDICATE THAT A
PORTION OF THE EXHIBIT HAS BEEN OMITTED AND FILED SEPERATELY WITH THE
COMMISSION.  CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

3

CONFIDENTIAL TREATMENT REQUESTED

 

 

	
   

  	
  ELAN CORPORATION, PLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  LIAM DANIEL

  	
   

  
	
   

  	
   

  	
  Name:  Liam Daniel

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  Company Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ELAN PHARMA INTERNATIONAL
  LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  LIAM DANIEL

  	
   

  
	
   

  	
   

  	
  Name:  Liam Daniel

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  Company Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEPOMED DEVELOPMENT LTD.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  STEPHEN J. ROSSITER

  	
   

  
	
   

  	
   

  	
  Name:  Stephen J. Rossiter

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEPOMED, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/  JOHN N. SHELL

  	
   

  
	
   

  	
   

  	
  Name:  John N. Shell

  	
   

  	
   

  
	
   

  	
   

  	
  Title:  Vice President, Operations

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

 

 

 

 

 

THE SYMBOL [***] IS USED TO INDICATE THAT A
PORTION OF THE EXHIBIT HAS BEEN OMITTED AND FILED SEPERATELY WITH THE
COMMISSION.  CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

4

CONFIDENTIAL TREATMENT REQUESTED

 

SCHEDULE 1

 

ELAN IMPROVEMENTS

 

	
  •

  	
   

  	
  Gastro-retentive
  formulation of [***] including any data, studies, clinical results, methods
  of manufacturing and methods of use related thereto.

  
	
  •

  	
   

  	
  Gastro-retentive
  formulation of [***] including any data, studies, clinical results, methods
  of manufacturing and methods of use related thereto.

  
	
  •

  	
   

  	
  All information related to
  placebo studies related to the EGTS Technology and/or GR Technology (as each
  is defined in the Elan License Agreement).

  
	
  •

  	
   

  	
  All information generated
  within the JV on [***] including scale-up information and stability data.

  
	
  •

  	
   

  	
  All developments made
  related to the manufacturing apparatus for products made using the EGTS
  Technology and/or GR Technology.

  
	
  •

  	
   

  	
  All commercial information
  and contacts generated within the JV related to the EGTS Technology and/or GR
  Technology or the above-noted formulations.

  

 

 

 

 

 

 

THE SYMBOL [***] IS USED TO INDICATE THAT A
PORTION OF THE EXHIBIT HAS BEEN OMITTED AND FILED SEPERATELY WITH THE
COMMISSION.  CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

5

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