Document:

erb20160705_8k.htm

Exhibit 10.2

 

 

CHANGE IN TERMS AGREEMENT

 

	 	 	 	 
	 	 	 	 
	
Borrower:
	
Erba Diagnostics, Inc.
	
Lender:
	
Citibank, N.A.

	  	
2140 North Miami Avenue
	  	
6801 Colwell Boulevard

	  	
Miami, FL 33127
	  	
Irving, TX 75039

	  	  	  	  

 

	
Principal Amount: $5,000,000
	
Date of Agreement: June 28, 2016

 

DESCRIPTION OF EXISTING INDEBTEDNESS. Promissory Note dated September 17, 2015 in the original amount of $5,000,000 by and between Erba Diagnostics, Inc. (“Borrower”) and Citibank, N.A. (“Lender”), the “Note” as amended from time to time. 

 

DESCRIPTION OF CHANGE IN TERMS. Lender and the Borrower hereby agree that the said Note shall be and hereby is amended to extend the maturity date from June 30, 2016 to December 31, 2016, subject to the terms and conditions of the Note and the instruments and agreements referred to therein.

 

CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender’s right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification of release, but also to all such subsequent actions.

 

PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT.

 

BORROWER:

 

 

 

ERBA DIAGNOSTICS, INC.

 

 

 

	 	
 
	
 
	
 
	
 
	
 

	By:	
/s/ Mohan Gopalkrishnan 
	
 
	
By:
	
/s/ Ernesina Scala
	
 

	 	
Mohan Gopalkrishnan, Chief Executive Officer
	
 
	
 
	
Ernesina Scala, Chief Financial Officer 
	
 

	 	
and Secretary of Erba Diagnostics, Inc.
	
 
	
 
	of Erba Diagnostics, Inc.amph_Ex10_1

		

			Exhibit 10.1

		

		

			 

		

		
			THIS SEVENTH AMENDMENT AND TERMINATION AGREEMENT (the “Seventh Amendment”) is entered into on this 30th day of June,  2016 (the “Amendment Date”) by and between Amphastar Pharmaceuticals, Inc., a Delaware Corporation, (“Amphastar”) and Actavis Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. – Florida and as Andrx Pharmaceuticals, Inc.)  (“Actavis” or “Purchaser”).
		

		
			 
		

		
			WHEREAS, Amphastar and Actavis (collectively as “Parties”) have previously entered into that certain Distribution Agreement dated May 2, 2005, which was amended by the First Amendment dated August 15, 2008,  the Second Amendment dated February 19, 2013,  the Third Amendment dated April 1, 2014, the Fourth Amendment dated January 7, 2015, the Fifth Amendment dated February 4, 2015, and the Sixth Amendment dated March 6, 2015  (as amended, the “Agreement”), related to, among other things, Actavis’s distribution of Product (as defined in the Agreement); and
		

		
			 
		

		
			WHEREAS, the parties wish to further amend the Agreement as set forth below.
		

		
			 
		

		
			NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree, as follows:
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Amendment of Section 2.2.3 of the Agreement.   

		
			 
		

		
			Effective immediately as of the Amendment Date, Section 2.2.3 of the Agreement shall be deemed automatically deleted in its entirety and shall have no further force and effect. 
		

		
			 
		

		
			2.Termination of Agreement.  
		

		
			 
		

		
			a)The Parties hereby mutually agree that the Agreement shall automatically terminate, with no further action by the Parties, on the earlier of (i) January 1, 2017 and (ii) such date that is thirty days (30) after Actavis notifies Amphastar in writing that Actavis has less than thirty (30) days inventory of the Product remaining in Actavis’ possession or scheduled to be delivered pursuant to the pending Purchase Orders (the “30 Day Notice”),  provided that Actavis must use Commercially Reasonable Efforts to sell its remaining inventory of the Product and shall provide Amphastar with the 30 Day Notice no later than three (3) business days following the actual date that Actavis has less than thirty (30) days inventory of the Product remaining in Actavis’ possession or on order. Notwithstanding the foregoing, if Amphastar fails to deliver Purchaser’s pending Purchase Orders for Product within thirty (30) days of the presently scheduled delivery date, Purchaser shall have the right to extend the foregoing January 1, 2017 date by the total amount of days that Amphastar failed to deliver the Product after the presently scheduled delivery date (the “Termination Date”).  
		

		
			 
		

		
			b)Notwithstanding the Preamble, Section 2.1.1 of the Agreement or anything else to the contrary,  on and after the Amendment Date, Amphastar shall have the right to  

		 

 

appoint a new distributor for the Product to Purchaser Customers in the Territory defined by the Agreement,  but only on the condition that neither Amphastar nor such new distributor (or their respective Affiliates or designees)  shall distribute, sell or otherwise commercialize the Product to Purchaser Customers in the Territory prior to the Termination Date. In the event that Amphastar or any distributor (or their respective Affiliates or designees) distributes, sells or otherwise commercializes the Product to Purchaser Customers in the Territory prior to the Termination Date,  Purchaser may terminate the Agreement upon written notice to Amphastar and in addition to any other remedy available in law or in equity, upon such termination, Amphastar agrees to promptly repurchase all of Purchaser’s remaining inventory of the Product at a price equal to the amount paid by Purchaser for such inventory.       
		

		
			 
		

		
			c) Following the delivery of the 30 Day Notice or December 1, 2016, whichever is earlier, Actavis shall use Commercially Reasonable Efforts to provide Amphastar and/or its new distributor with any customer or Product pricing information that Amphastar may reasonably request with respect to the Product sold by Actavis to its customers prior to the Termination Date including but not limited to customer lists, quantities sold, agreement price, Dead Net Pricing (defined as the price after all discount, allowances, rebates, chargebacks, customer fees, and any other deductions from sales), and related information for each Purchaser Customers.   
		

		
			 
		

		
			3.Release.  Amphastar does hereby release, acquit, satisfy, and forever discharge Actavis and its Affiliates (including Allergan plc and any of its subsidiaries)  from any and all claims, in law or in equity, which it now has, or hereafter may have against the other party in connection with the Agreement, other than (i) the payment obligations owing to Amphastar under Article 4 of the Agreement as of the Termination Date; and (ii) any claims for damages resulting from a party’s gross negligence or intentional misconduct.  For the avoidance of doubt, Actavis does not release Amphastar from its Product warranty obligations or from its indemnification obligations pursuant to Section 17.4, pursuant to which Amphastar indemnifies Actavis for any damages that result from the Momenta litigation and/or any other Third Party Infringement Claim.
		

		
			 
		

		
			4.Product Labeling. Actavis will reimburse Amphastar for the actual out of pocket cost of (i) any of the Product Labeling inventories remaining as of the Termination Date (“Product Labeling Inventories”), and (ii) the disposal cost for such Product Labeling Inventories.
		

		
			 
		

		
			5. Public Announcements. Neither Amphastar nor any of its Affiliates or designees shall issue any press release or make any public announcement relating to the subject matter of the Agreement without the prior written consent of Actavis, which consent shall not be unreasonably withheld, delayed or conditioned; provided, however, that Amphastar may make any public disclosure it believes in good faith is required by applicable Law (in which case Amphastar will provide reasonable advance notice to Actavis prior to making the disclosure and will in good faith consider the reasonable comments of Actavis on such disclosure).
		

		
			 
		

		
			

		 

		

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6.Definitions.  Unless otherwise defined herein, capitalized terms shall have the meanings as defined in the Agreement.
		

		
			 
		

		
			7.Scope of Amendment.  Except as expressly and specifically amended hereby, all other provisions and, terms and conditions of the Agreement shall remain unchanged and in full force and effect.
		

		
			 
		

		
			8.Counterparts.    This Seventh Amendment may be executed in several counterparts, each of which shall be deemed and original, but all of which together shall constitute one and the same instrument.  Signatures delivered via facsimile or other electronic means shall have the full force of an original signature.
		

		
			 
		

		
			
		

		
			

		 

		

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IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute this Seventh Amendment as of the date first written above. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						AMPHASTAR PHARMACEUTICALS, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/S/Jacob Liawatidewi

				
	
					
						 

					
					
						Name:

					
					
						Jacob Liawatidewi

				
	
					
						 

					
					
						Title:

					
					
						Sr. VP Corporate Admin Center

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ACTAVIS LABORATORIES FL, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/S/Daniel N. Motto

				
	
					
						 

					
					
						Name

					
					
						Daniel N. Motto

				
	
					
						 

					
					
						Title:

					
					
						SVP, Global Business Development

				

		
			 
		

		 

		

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