Document:

exv10w1

 

Exhibit 10.1

*Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 240.24b-2

EXCLUSIVE DISTRIBUTION AGREEMENT

BETWEEN

AKORN, INC., AND

MASSACHUSETTS BIOLOGICAL LABORATORIES

     This Exclusive Distribution Agreement (“Agreement”) is made as of the 22
day of March, 2007 (“Effective Date”), between Akorn, Inc., having its principal place of business
at 2500 Millbrook Drive, Buffalo Grove, IL 60089-4694 (“Buyer”), and the University of
Massachusetts, as represented by the Massachusetts Biological Laboratories, having its principal
place of business at 305 South Street, Jamaica Plain, MA 02130 (“Seller”).

     In consideration of the mutual covenants in this Agreement, the parties agree as follows:

1.      Appointment.

	 	(a)	 	Seller appoints Buyer as the exclusive distributor of the Tetanus Diphtheria
vaccine, 15 dose/vial, and preservative-free Tetanus Diphtheria vaccine, 1 dose/vial
(the “Product”), and Buyer accepts the appointment.
	 
	 	(b)	 	Buyer shall distribute the Products on an exclusive basis within the United
States and Puerto Rico.
	 
	 	(c)	 	The appointment begins September 1, 2007, and ends June 30, 2010.

2.      Purchase Commitment and Ship Dates.

	 	(a)	 	Buyer shall purchase the following doses of Product (the “Dosage Commitment”):
(i) [***...***] doses between September 1, 2007 and June 30, 2008, (ii) [***...***]
doses between July 1, 2008 and June 30, 2009, and (iii) [***...***] doses between July
1, 2009 and June 30, 2010. During the first period, September 1, 2007 to June 30,
2008, [***...***] doses are multi-dose vials @ 15 doses per vial, and [***...***] doses
are single dose vials, thereafter, the Product will only be supplied as single dose
vials ([***...***] single-dose vials, collectively, in years two and three as provided
above).
	 
	 	(b)	 	Seller shall ship the Dosage Commitment in full lots to Buyer (less any Product
that Seller is obligated to provide to the State of Massachusetts) according to the
schedule in Exhibit A.
	 
	 	(c)	 	Seller represents that each Product shipped to Buyer in the first year of the
Agreement has a minimum shelf life of no less than 20 month dating for multi-dose
vials, and no less than 12 month dating for single dose vials; and that each Product
shipped to Buyer thereafter, has a minimum shelf life of no less than 20 month dating
on for single dose vials.
	 
	 	(d)	 	Payment terms are net sixty (60) days.

* CONFIDENTIAL TREATMENT REQUESTED — This language has been omitted and filed separately with
the Securities and Exchange Commission.

 

 

*Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 240.24b-2

3.      Price.

	 	(a)	 	Between the Effective Date and June 30, 2009, Buyer shall pay (i) [***...***]
per multi-dose vial ([***...***] per dose) (not including excise tax) and (ii)
[***...***] (not including excise tax) per single dose vial, which Seller represents
are the most favorable prices available to any distributor, except the Commonwealth of
Massachusetts.
	 
	 	(b)	 	After June 30, 2009, Buyer shall pay [***...***] per single dose vial (not
including excise tax).

4.      Representations. Seller represents that:

	 	(a)	 	Title to the Product will pass to Buyer free and clear of all third party
liens, claims, security interests, or other encumbrances.
	 
	 	(b)	 	Seller has manufactured, labeled, classified, described, marked, packaged, and
sold the Product to Buyer in compliance with all governing laws and regulations.
	 
	 	(c)	 	The Product is not adulterated or misbranded within the meaning of the Federal
Food, Drug and Cosmetic Act (the “Act”) or any applicable state or municipal law in
which the definitions of adulteration and misbranding are substantially the same as
those contained in the Act and is not an article which may not, under the provisions of
Sections 404 or 505 of the Act, be introduced into interstate commerce.
	 
	 	(d)	 	Neither Seller nor, to its knowledge, any of its employees or contractors
providing items to Buyer: (i) have been convicted of a criminal offense related to
healthcare; (ii) are currently excluded, suspended or debarred from participating in
any federal healthcare program; or (iii) are currently listed on the General Services
Administration List of Parties Excluded from the Federal Procurement and
Non-Procurement Programs.
	 
	 	(e)	 	Seller maintains products liability insurance with limits of coverage of Five
Million Dollars ($5,000,000) per occurrence and an aggregate limit of Five Million
Dollars ($5,000,000).
	 
	 	(f)	 	Seller has the right to use all of the intellectual property involved in
producing and packaging the Products.

5.      Representations Buyer.

	 	(a)	 	Buyer shall distribute the Products in accordance with all applicable federal,
state, and local laws, rules, and regulations applicable to the Products (including
advertising, promoting, marketing, selling, and handling the Products, with particular
attention to maintaining appropriate temperature of the Product during shipment).

* CONFIDENTIAL TREATMENT REQUESTED — This language has been omitted and filed separately with
the Securities and Exchange Commission.

 

 

*Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 240.24b-2

	 	(b)	 	Buyer has maintains in full force all licenses, permits, orders, and waivers
required by any governmental or regulatory entity to distribute the Products lawfully.
	 
	 	(c)	 	Buyer maintains commercial general liability insurance that includes coverage
of at least One Million Dollars ($1,000,000) per incident and at least Five Million
Dollars ($5,000,000) in the aggregate covering Buyer’s advertising, promoting,
marketing, selling, and handling of the Products.

6.      Shipment, Risk of Loss and Title.

	 	(a)	 	Shipments of the Product are f.o.b. Boston, Massachusetts.
	 
	 	(b)	 	Buyer shall select the carrier (which may include Buyer’s own trucks) and shall
pay directly to the carrier the applicable freight charges.
	 
	 	(c)	 	Seller shall prepare all shipments by piece count and include Buyer’s purchase
order number in the field provided on the Bill of Lading or applicable shipper’s
manifest for each shipment of Product.

7.      Returned Products. Seller accepts returns only for Products that (a) are not in accordance with
Seller’s representations, (b) do not meet the specifications, or (c) otherwise are not delivered in
compliance with this Agreement, and Buyer is not required to pay for any such return shipment .

8.      Product Recalls. If notified by Seller of a product recall of Products, Buyer shall conduct a
product recall in accordance with the regulations of the United States Food and Drug
Administration. Buyer shall return any Product that is subject to a recall to Seller for full
credit or refund, and Seller shall pay the cost of any recall.

9.      Excusable Delays. Seller is not liable for delay or non-delivery of Products when due to delays
of suppliers, acts of God or the public enemy, compliance with any applicable foreign or domestic
governmental regulation or order, riots, labor disputes, unusually severe weather, or any other
cause beyond the reasonable control of Seller. Seller shall give Buyer notification of any
excusable delays.

10.      Use of Names.

	 	(a)	 	For Seller’s single dose Product, Buyer may arrange at its cost for Seller to
affix FDA compliant labeling with Buyer’s designated information. Seller will remain
identified as manufacturer of product on all labeling. Neither party has rights to the
other party’s name or identity.
	 
	 	(b)	 	Buyer may not make any public statement regarding Seller, the Massachusetts
Biologics Laboratories, the University of Massachusetts, any other agency of the
Commonwealth of Massachusetts, or any of their employees, trustees, or

* CONFIDENTIAL TREATMENT REQUESTED — This language has been omitted and filed separately with
the Securities and Exchange Commission.

 

 

*Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 240.24b-2

	 	 	 	officers without
the prior written approval of the University of Massachusetts, except as otherwise
required by law.

11.      Termination. Either party may terminate this Agreement, as follows:

	 	(a)	 	For cause, upon ten (10) days written notice to the other party, if the other
party (i) fails to perform any of its material obligations in this Agreement and the
failure continues for thirty (30) days after written notice by the other party; or (ii)
becomes insolvent, files a voluntary petition under any law relating to bankruptcy or
insolvency, or becomes unable to pay its debts when due; or
	 
	 	(b)	 	After termination of this Agreement by either party, other than for cause by
Seller, Buyer may sell any remaining inventory of Products or, at Seller’s option,
Seller may within thirty (30) days from the date of termination, repurchase Buyer’s
remaining inventory of Products (“Remaining Inventory”). If Seller does not repurchase
the Remaining Inventory as provided above, then for six (6) months after the effective
date of termination, Buyer remains an authorized distributor of Seller’s Products until
all of the Remaining Inventory is sold.
	 
	 	(c)	 	Buyer may not sell any remaining product if Seller terminates the Agreement for
cause.

12.      Miscellaneous.

	 	(a)	 	The relationship between the parties hereto is independent contracting parties.
Neither party may act as an agent of the other party except as contemplated by this
Agreement.
	 
	 	(b)	 	This Agreement is governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts without regard to conflict of laws provisions. The
parties shall bring any legal action arising out of or in connection with this
Agreement in the Massachusetts Superior Court in Suffolk County.
	 
	 	(c)	 	This Agreement embodies the entire understanding between the parties and
supersedes all prior agreements and understandings relating to its subject matter. The
parties may only modify this Agreement in writing signed by both parties.
	 
	 	(d)	 	This Agreement is binding upon, inures to the benefit of, and is enforceable by
the respective permitted successors and assigns of the parties. This Agreement may not
be assigned in whole or in part by either party, except with the written consent of the
other party, which consent may not be unreasonably withheld.
	 
	 	(e)	 	The parties shall deliver all notices and other communications related to this
Agreement in writing by certified mail return receipt requested or by overnight mail
with a recognized national carrier to the addresses shown on the first page

* CONFIDENTIAL TREATMENT REQUESTED — This language has been omitted and filed separately with
the Securities and Exchange Commission.

 

 

*Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 240.24b-2

	 	 	 	of this Agreement, or such other addresses as the parties may designate in writing, with a copy
to each party’s legal department. Notices under this Agreement are effective on
receipt.

The parties have duly executed this Agreement as of the Effective Date.

	 	 	 
	(“Buyer”)

	 	(“Seller”)
	AKORN, INC.

	 	MASSACHUSETTS BIOLOGICAL
	 

	 	LABORATORIES
	 

	 	 
	 
	 	 
	By: /s/ Arthur S. Przybyl

	 	By: /s/ Donna Ambrosino
	 

	 	 
	 
	 	 
	Printed Name: Arthur S. Przybyl

	 	Printed Name: Donna Ambrosino
	 

	 	 
	 
	 	 
	Title: President and CEO

	 	Title: Director
	 

	 	 
	 
	 	 
	Date: 3/26/07

	 	Date: 3/22/07
	 

	 	 
	 
	 	 
	 

	 	(“Seller”)
	 

	 	UNIVERSITY OF MASSACHUSETTS
	 

	 	MEDICAL SCHOOL
	 

	 	 
	 
	 	 
	 

	 	By: /s/ Richard Stanton
	 

	 	 
	 
	 	 
	 

	 	Printed Name: Richard Stanton
	 

	 	 
	 
	 	 
	 

	 	Title: Deputy Chancellor
	 

	 	 
	 
	 	 
	 

	 	Date:
	 

	 	 

* CONFIDENTIAL TREATMENT REQUESTED — This language has been omitted and filed separately with
the Securities and Exchange Commission.

 

 

*Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 240.24b-2

EXHIBIT A

Delivery Schedule

Product delivery for 2007 is expected to be [***...***] doses in multi-dose vials. Product
delivery for 2008 TBD, but is expected to be single dose vials:

	 	 	 	 	 	 	 
	 	 	Delivery Date	 	Delivery Quantity	 	 
	 
	 	 	 	 	 	 
	 

	 	September 1, 2007
	 	1 lot of approximately [***...***] doses.
	 	 
	 
	 	 	 	 	 	 
	 

	 	September 15, 2007
	 	1 lot of approximately [***...***] doses.	 	 
	 
	 	 	 	 	 	 
	 

	 	October 1, 2007
	 	1 lot of approximately [***...***] doses.	 	 
	 
	 	 	 	 	 	 
	 

	 	October 15, 2007
	 	1 lot of approximately [***...***] doses.	 	 
	 
	 	 	 	 	 	 
	 

	 	November 1, 2007
	 	1 lot of approximately [***...***] doses.	 	 
	 
	 	 	 	 	 	 
	 

	 	November 15, 2007
	 	1 lot of approximately [***...***] doses.	 	 
	 
	 	 	 	 	 	 
	 

	 	December 1, 2007
	 	1 lot of approximately [***...***] doses.	 	 
	 
	 	 	 	 	 	 
	 

	 	December 15, 2007
	 	1 lot of approximately [***...***]] doses.	 	 
	 
	 	 	 	 	 	 
	 

	 	December 30, 2007
	 	remaining vials to fulfill commitment.	 	 

* CONFIDENTIAL TREATMENT REQUESTED — This language has been omitted and filed separately with
the Securities and Exchange Commission.exv10w30

 

Exhibit 10.30

STOCK OPTION AGREEMENT

     STOCK OPTION AGREEMENT dated December 15, 2006 between MACKINAC FINANCIAL CORPORATION (the
“Company”) and L. BROOKS PATTERSON (the “Optionee”).

RECITALS:

     A. Optionee is a currently serving as a non-employee director of the Company and
the Company has determined that Optionee’s continued service on the Board of Directors can
have a significant effect on the future success of the Company.

     B. The Company hereby grants to Optionee the option to purchase from the
Company ten thousand (10,000) shares of the Company’s Common Stock (the “Option Shares”)
at a purchase price per share equal to equal to 100% of the Fair Market Value (as defined in
the Plan) of each such share, which the parties agree to be ten and
65/100 dollars ($10.65) (the
“Exercise Price”). Such options are to be issued under and in accordance with the terms and
conditions of the Company’s 2000 Stock Incentive Plan (the “Plan”) and this Agreement.

     C. The Directors of the Company have approved the grant to Optionee of the option
to purchase the Option Shares in accordance with the Plan and this Agreement.

     IT IS HEREBY AGREED AS FOLLOWS:

     1. Grant of Option; Effectiveness. Subject to the terms of the Plan and this
Agreement, the Company hereby grants and awards to Optionee the right and option to purchase all
or any of the Option Shares upon payment to the Company of the Exercise Price per share as
hereinafter provided.

     2. Vesting. (a) The right and option to purchase 20% of the Option Shares shall vest and be
exercisable beginning on the day following the Closing under the Stock Purchase Agreement and
continuing through the balance of the Option Term (as hereinafter defined). The options for the
remaining 80% of the Option Shares shall vest and be exercisable in increments as provided below as
and when the Ten Day Trading Price (as hereinafter defined) for the Company’s Common Stock shall
equal or exceed one or more of the Target Prices during the Pricing Periods specified below:

 

 

	 	 	 	 	 	 	 
	Exercise Price x 1.15

	 	During the Option Term
	 	 	27	%
	 
	 	 	 	 	 	 
	Exercise Price x 1.30

	 	After the first year of the
Option Term
	 	 	27	%
	 
	 	 	 	 	 	 
	Exercise Price x 1.45

	 	After the second year of
the Option Term
	 	 	26	%

For purposes of this Agreement, the “Ten Day Trading Price” shall mean the
closing price for the Company’s Common Stock on the Nasdaq Small Cap market for any 10 consecutive
days on which the Nasdaq market system is open and available for trading. For purposes of making
the foregoing determination, if for any reason no shares of the Company’s Common Stock are traded
on any day that the Nasdaq market is open and available for trading, the closing price for such
date shall be the closing price on the first preceding day on which shares of the Company’s Common
Stock were traded.

(b) Notwithstanding the foregoing vesting schedule, but subject to the terms of Section 3, all
unvested options for Option Shares shall vest and become immediately exercisable upon: (i)
Optionee’s Retirement (as defined in the Plan), or early retirement or resignation with the
consent of the Company as contemplated by Section 10(a) and (b) of the Plan; (ii) the death or
disability of the Optionee; or (iii) a Change of Control (as defined in the Plan) of the Company.

     3. Option Period. Subject to the terms of this Agreement (including Section 2), the
options may be exercised and Option Shares may be purchased at any time and from time to time
beginning on the first day after the date hereof and ending on and prior to the tenth anniversary
of the date hereof (the “Option Term”), subject to the following:

          (a) Except as otherwise provided in this Section 3, in the event Optionee
ceases to remain in Service while this option is outstanding, the options then vested shall
remain
exercisable until the earlier of (i) the last day of the
36th month after the month
Service is
terminated, or (ii) the expiration of the Option Period; and

          (b) Any vested and unexercised options shall expire at the time the Optionee’s
Service is terminated for Misconduct.

          (c) Except for early retirement or resignation with the consent of the
Company as contemplated by Section 10(a) and (b) of the Plan, any unexercised options shall
expire at the time Optionee’s Service is voluntarily terminated by the Optionee.

          (d) For purposes of this Section 3 and for all other purposes under this
Agreement:

2

 

          (1) The Optionee shall be deemed to remain in “Service” for so long as
he continues to render periodic service to the Company or any parent or subsidiary of
the
Company, whether as an employee or a non-employee member of the Board of Directors.

          (2) “Misconduct” means the commission of any act of fraud,
embezzlement or dishonesty by the Optionee, any unauthorized use or disclosure by the
Optionee of confidential information or trade secrets of the Company or any parent or
subsidiary of the Company, or any other intentional misconduct by such person adversely
affecting the business or affairs of the Company or any parent or subsidiary of the
Company in a material manner. The foregoing definition shall not be deemed to be
inclusive of all the acts or omissions which the Company or any parent or subsidiary of
the Company may consider as grounds for the removal or discharge of Optionee from
Service.

     4. Procedure for Exercise. Subject to conditions of this Agreement, the options may
be exercised at any time and from time to time during the Option Period by delivering written
notice to the Company, signed by Optionee, an Authorized Transferee, or
post-death
representative, specifying the number of Option Shares to be purchased.

     5. Payment of Option Price. The purchase price for the Option Shares shall be paid
in full in cash.

     6. Transferability of Options. Except as otherwise provided in this Section, the
options shall not be sold, pledged, assigned, or transferred in any way, nor be assignable by
operation of law or be subject to execution, levy, attachment or similar process. Except as
provided in this Section, any attempted sale, pledge, assignment or other transfer contrary to
the
terms hereof, and any execution, levy, attachment or similar process, shall be null and void
and
without any effect. Notwithstanding the foregoing, the options shall, subject to the
conditions set
forth in this Section, be transferable by the Optionee by gift or other transfer that involves
no
payment of consideration to the Optionee to the Optionee’s spouse and/or the descendents or to
a
trust created primarily for the benefit of the Optionee, the Optionee’s spouse and/or the
Optionee’s descendents (“Authorized Transferee”). An Authorized Transferee shall have no
right to transfer the options. An Authorized Transferee shall succeed to all rights and
benefits
(except the right to further transfer the options) and be subject to all obligations,
conditions and
limitations of the Optionee. However, such rights and benefits (except the rights to further
transfer the options) and obligations, conditions and limitations shall be determined as if
the
Optionee continued to hold the options, and the provisions of this Option Agreement dealing
with termination of Service, Retirement, disability and death of an Optionee continue to refer
to
the Optionee regardless of whether the options are or are not transferred to an Authorized
Transferee. In order to transfer options, the Optionee must first give prior written notice
to the
Company stating the name, address and tax identification or social security number of the
proposed transferee and the relationship of the proposed transferee to the Optionee. The
option
may not be transferred if the transfer would constitute a violation of any applicable federal
or state securities or other law or regulation.

     7. Conformity with Plan. Except as otherwise provided herein, the options are
subject to all applicable provisions of the Plan which is incorporated herein by reference.
Any
matters not addressed herein shall be governed by the terms of the Plan.

3

 

     8. Adjustments. The Company shall make appropriate and
proportionate
adjustments to the number of Option Shares and the Exercise Price to reflect any stock
dividend,
stock split, or combination of shares, merger, consolidation, or other change in the
capitalization
of the Company, as provided in Section 13 of the Plan. In the event of any such adjustment,
all
new, substituted, or additional securities or other property to which Optionee is entitled
under the
options shall be included in the term “Option Shares.”

     9. Postponement of Delivery of Shares. The Company, in its discretion, may
postpone the issuance or delivery of Option Shares upon any exercise of the options until
completion of any then pending registration of such shares under the Securities Act of 1933,
as
amended (“Securities Act”), covering the resale of such securities by Optionee.

     10. Rights as a Shareholder. The Optionee shall have no rights as a shareholder with
respect to any Option Shares until the Optionee becomes the holder of record of such shares.

     11. Further Actions. The parties agree to execute such further instruments and to take
such further actions as may be reasonably be required to carry out the intent of this
Agreement.

     12. Notice. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery or upon deposit in the United States
Post Office, by registered or certified mail with postage and fees prepaid, addressed to the
other
party hereto at the address as such party may designate by written notice to the other party.

     13. Successors and Assigns. This Agreement shall be binding upon and inure to
the
benefit of the successors and assigns of the Company and, subject to the restrictions on
transfer
set forth herein, be binding upon and inure to the benefit of Optionee’s personal
representatives,
successors and permitted assigns.

     14. Governing Law. This Agreement and all documents contemplated hereby, and all
remedies in connection therewith and all questions or transactions relating thereto, shall be
construed in accordance with and governed by the laws of the State of Michigan.

[THIS SPACE INTENTIONALLY LEFT BLANK]

4

 

	 	 	 	 	 
	 	MACKINAC FINANCIAL CORPORATION:

 	 
	 	By:  	
 	 
	 	 	Paul D. Tobias 	 
	 	 	Its: Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OPTIONEE:

 	 
	 	
 	 
	 	L. Brooks Patterson 	 
	 	 	 
	 

5

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