Document:

EXHIBIT 10.5

 

2014 Senior Management Incentive Bonus Plan

 

Participants:        Marc D. Grodman, MD, CEO

Wendy Chung, CSO

Howard Dubinett, COO

Charles T. Todd, Sr. VP Marketing & Sales

Amar Karnath, VP Marketing

Gary Reeves, VP, Women’s Health

Scott Montgomery, VP, Clinical

Don Fowler, VP, Oncology

Warren Erdmann, SVP Operations

Nick Cetani, VP Laboratory Director

Ron Rayot, VP

Chris Smith, VP

Sam Singer, CFO

Sally Howlett, VP Billing

Nick Papazicos, SVP Financial Operations

James Weisberger, MD, CMO

Maryanne Amato, Director, Genpath

Sherri Bale, CCO GeneDx

Dean Gaalaas, COO GeneDx

Richard L. Faherty, CIO

John Mooney, VP

Cory Fishkin, COO CareEvolve

J. David Liss, VP, External Relations

 

Proposed Plan:

 

A.            The Senior Management Incentive Bonus Plan (the “Plan”) will be based on two (2) separate financial calculations. The first formula will be based on “Operating Income” as a percent of “Net Revenues” pursuant to the Consolidated Financial Statements of the Company. The second formula will be based on the percentage increase of “Operating Income” from fiscal 2013 to fiscal 2014 pursuant to the Consolidated Financial Statements of the Company.

 

B.            There will be one class of participation.

 

C.            Calculations for the first portion of the program will be as follows:

 

1.              Operating Income shall consist of the Total Operating Income (hereinafter referred to as “TOI”) for the Entire Company including all divisions and subsidiaries.

 

2.              In the event that TOI shall be equal to or greater than 11.00%, then and in such event, the participants will be entitled to a bonus based on the participant’s annual gross wages including any CPI adjustment paid to him or her in fiscal 2014 exclusive of any bonus, option exercise, auto or airplane usage expense charge-back, or other unearned revenue (“Annual Gross Wages”), pursuant to the following schedule:

 

	
If TOI is greater than or
   equal to
    	
 
    	
and less than
    	
 
    	
Percent Bonus
    	
 
    
	
12.25
    	
%
    	
12.75
    	
%
    	
4
    	
%
    
	
12.75
    	
%
    	
13.25
    	
%
    	
6
    	
%
    
	
13.25
    	
%
    	
13.75
    	
%
    	
8
    	
%
    
	
13.75
    	
%
    	
NIA
    	
 
    	
10
    	
%
    

 

3.             The maximum bonus to be paid under this portion of the program will be 10% of the Annual Gross Wages paid to the participant in fiscal 2014 regardless of TOI.

 

D.                  Calculations for the second portion of the program will be as follows:

 

1.              Operating Income will consist of Operating Income before interest and taxes for the Entire Company including all divisions and subsidiaries.

 

2.              Percentage increase on a year over year basis will be determined by subtracting the Operating Income as reported in the Company’s Consolidated Financial Statements for the 2013 fiscal year (“Base Year”) from the Operating Income as reported in the Company’s Consolidated Financial Statements for the 2014 fiscal year (“Current Year”).  This will 

 

 

result in a difference (“Diff’).  The Diff will be divided by the Base Year to determine the percentage of change (“PC”) in Operating Income between the Base Year and the Current Year.

 

3.              In the event that the PC is positive (an increase) and equal to or greater than 25%, then and in such event, each participant will be entitled to a bonus based on the participant’s Annual Gross Wages pursuant to the following schedule:

 

	
If PC is greater than or
   equal to:
    	
 
    	
and less than
    	
 
    	
Percent Bonus
    	
 
    
	
25.00
    	
%
    	
30.00
    	
%
    	
6
    	
%
    
	
30.00
    	
%
    	
35.00
    	
%
    	
9
    	
%
    
	
35.00
    	
%
    	
40.00
    	
%
    	
12
    	
%
    
	
40.00
    	
%
    	
NIA .
    	
 
    	
15
    	
%
    

 

4.              The maximum bonus to be paid under this portion of the program will be 15% of Annual Gross Wages regardless of Operating Income.

 

E.                The two portions shall be calculated separately and shall not be dependent on each other. Participants may earn a bonus from either or both financial calculations. Regardless, however, of the Company achievements, the maximum bonus to be paid under the Plan will be 25% of Annual Gross Wages in fiscal 2014.Exhibit 10.1

 

Filed Pursuant to Rule 433
 Registration Statement No. 333-192256

Free Writing Prospectus dated January 10, 2014
 Relating to Prospectus Supplement dated January 10, 2014

 

ALKERMES PUBLIC LIMITED COMPANY
  5,917,160 Ordinary Shares

 

Pricing Term Sheet

 

Alkermes Public Limited Company hereby agrees to issue, and Invesco Perpetual Income Fund (“IPI Fund”) and Invesco Perpetual High Income Fund (“IPHI Fund” and, together with IPI Fund, the “Funds”), acting through Invesco Asset Management Limited in its capacity as agent for and on behalf of the Funds, hereby agree to subscribe for and pay for, ordinary shares, US$0.01 par value, of Alkermes plc (the “Ordinary Shares”) on the terms set forth below. 

 

	
·  Issuer:  
    	
 
    	
Alkermes Public Limited Company (“Alkermes”)  
    
	
 
    	
 
    	
 
    
	
·  Investors:
    	
 
    	
IPI Fund
    IPHI Fund
    
	
 
    	
 
    	
 
    
	
·  Security:
    	
 
    	
Ordinary Shares
    
	
 
    	
 
    	
 
    
	
·  Number of shares offered:
    	
 
    	
5,917,160
    
	
 
    	
 
    	
 
    
	
·  Shares   to be outstanding after this offering:
    	
 
    	
143,853,607 (based on ordinary shares outstanding   as of close of business on January 8, 2014)
    
	
 
    	
 
    	
 
    
	
·  Price:
    	
 
    	
US$42.25
    
	
 
    	
 
    	
 
    
	
·  NASDAQ Symbol:
    	
 
    	
ALKS
    
	
 
    	
 
    	
 
    
	
·  Pricing Date:
    	
 
    	
January 10, 2014
    
	
 
    	
 
    	
 
    
	
·  Settlement Date:
    	
 
    	
January 16, 2014
    
	
 
    	
 
    	
 
    
	
·  Use of Proceeds:
    	
 
    	
We intend to use net proceeds from the sale of   the securities offered hereby for general corporate purposes.
    

 

 

Invesco represents and warrants that it is authorized to act on behalf of the Funds and that the Funds shall be jointly and severally liable to the Issuer in respect of all obligations under this Pricing Term Sheet.  The Issuer acknowledges that (i) Invesco is acting at all times as agent for and on behalf of the Funds and (ii) Invesco shall have no liability as principal to acquire and pay for the Ordinary Shares agreed to be acquired by the Funds hereunder.

 

Accepted and agreed as of January 10, 2014.

 

	
 
    	
ALKERMES   PUBLIC LIMITED COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Shane Cooke
    
	
 
    	
 
    	
Name:   Shane Cooke
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INVESCO PERPETUAL INCOME FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nick Mustoe
    
	
 
    	
 
    	
Invesco Asset Management Limited, in its
    
	
 
    	
 
    	
capacity as agent for and on behalf of Invesco
    
	
 
    	
 
    	
Perpetual Income Fund
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   Nick Mustoe
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INVESCO PERPETUAL HIGH INCOME FUND
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nick Mustoe
    
	
 
    	
 
    	
Invesco Asset Management Limited, in its
    
	
 
    	
 
    	
capacity as agent for and on behalf of Invesco
    
	
 
    	
 
    	
Perpetual High Income Fund
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:   Nick Mustoe
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:   Director
    

 

Alkermes has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents, including its memorandum and articles of association, which Alkermes has filed with the SEC for more complete information about Alkermes and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Alkermes will arrange to send you the prospectus if you request it by calling +1 (781) 609-6000.Exhibit 10.1

 

AGREEMENT

 

This agreement (this “Agreement”) is entered into as of January 10, 2014, by and among Prospect Global Resources, Inc., a Nevada corporation (“Prospect”), Apollo Management VII, L.P., a Delaware limited partnership (“Apollo Management”), and Apollo Commodities Management, L.P., a Delaware limited partnership with respect to Series I (“Apollo Commodities” and together with Apollo Management, “Apollo”).

 

Reference is made to the (i) Promissory Note dated March 7, 2013, issued by Prospect to Apollo Management, as amended (the “Apollo Management Note”), (ii) Promissory Note dated March 7, 2013, issued by Prospect to Apollo Commodities, as amended (the “Apollo Commodities Note” and together with the Apollo Management Note, the “Apollo Notes”), (iii) Senior First Priority Secured Promissory Note dated August 1, 2012, issued by Prospect Global Resources, Inc., a Delaware corporation, to The Karlsson Group, Inc. (“Karlsson”), an Arizona corporation, as amended (the “Karlsson Note”), and (iv) the Fourth Extension Agreement (as in effect on the date hereof, the “Fourth Extension Agreement”) among Karlsson, Prospect and the other parties thereto.

 

Apollo and Prospect hereby acknowledge and agree that (i) upon retirement or extinguishment of the Karlsson Note on or before March 10, 2014 (the “Karlsson Buy-Out”) in accordance with the terms of the Fourth Extension Agreement, and in any event for consideration with aggregate value less than or equal to 17.0% of the aggregate amount outstanding thereunder (including in respect of accrued interest and tax gross-up obligations) and (ii) subject to the simultaneous (a) delivery to Apollo by Prospect of a release in a form acceptable to Apollo, (b) execution and delivery of a registration rights agreement by Prospect and Apollo in connection with the Shares in a form acceptable to Apollo and in no event less favorable to Apollo than the registration rights agreement entered into by Prospect and Karlsson as of August 1, 2012 and (c) execution and delivery of a customary issuance agreement by Prospect and Apollo in connection with the issuance of the Shares to Apollo in a form acceptable to Apollo, Apollo Management and Apollo Commodities, respectively, shall accept in full satisfaction of any amounts then outstanding under the Apollo Notes (the “Note Satisfaction”) a number of shares of common stock of Prospect in accordance with the following formula (the “Shares”):

 

CS = 17.0% x (PI/AP)

 

WHERE

 

CS                                equals the number of shares of common stock of Prospect to be issued to Apollo Management and Apollo Commodities, respectively, upon the consummation of the Karlsson Buy-Out.

 

PI                                    equals the outstanding principal and accrued and unpaid interest on the applicable Apollo Note upon the consummation of the Karlsson Buy-Out.

 

AP                                equals the price per share of common stock of Prospect, which price shall be equal to either (a) (i) if the money raised for the Karlsson Buy-Out is in the form of an Equity Issuance, then the price per share of common stock of Prospect issued in such Equity Issuance or (ii) if the money raised for the Karlsson Buy-Out is in the form of a security convertible into common stock of Prospect, the conversion price per share of common

 

 

stock contemplated by such convertible security; provided that, notwithstanding anything to the contrary in this Agreement, in both of such subclauses (i) and (ii), AP shall not exceed the price per share calculated in accordance with the following clause (b), or (b) if the money raised for the Karlsson Buy-Out is not in the form of an Equity Issuance or a security convertible into common stock of Prospect, the volume weighted average price of the common stock of Prospect for the [five (5)] trading days immediately following the date of consummation of the Karlsson Buy-Out (or, if later, the date that the consummation of the Karlsson Buy-Out and the material terms of the capital raise in connection therewith have been publicly disclosed). “Equity Issuance” shall mean any issuance or sale by Prospect of shares of its common stock for the purposes of consummating the Karlsson Buy-Out.

 

Apollo further acknowledges and agrees that the ten percent (10%) prepayment requirement set forth in Section 1(c) of the Apollo Notes shall not apply to the first $1,000,000 in Financings (as such term is defined in the Apollo Notes) that Prospect arranges on or after December 10, 2013 and of which it receives the proceeds on or before March 10, 2014.

 

Except as expressly modified in this Agreement, all provisions of the Apollo Notes are and shall remain unchanged and shall continue in full force and effect, and the parties thereto and hereto shall continue to have all their rights and remedies under the Apollo Notes. This Agreement shall be binding on and shall inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement may be executed by the parties hereto on any number of separate counterparts, any of which may be executed and transmitted by facsimile, and each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to its principles of conflicts of law. Each of the parties hereto waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any legal proceeding arising out of or relating to this Agreement. No amendment or waiver of this Agreement shall be valid or binding unless contained in a writing agreement executed by each of the parties hereto.

 

Each of the parties hereto acknowledges and agrees that if the Note Satisfaction is not consummated on or prior to March 10, 2014 then this Agreement shall be null and void and of no further force and effect.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first written above.

 

	
 
    	
Prospect   Global Resources, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Damon Barber
    
	
 
    	
Name:   
    	
Damon   Barber
    
	
 
    	
Title:
    	
President,   CEO and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Apollo   Management VII, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
AIF   VII Management, LLC,
    
	
 
    	
 
    	
its   General partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/Laurie   D. Medley
    
	
 
    	
Name:
    	
Laurie   D. Medley
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Apollo   Commodities Management, L.P.
    
	
 
    	
with   respect to Series I
    
	
 
    	
 
    
	
 
    	
By:
    	
Apollo   Commodities Management GP, LLC,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/Laurie   D. Medley
    
	
 
    	
Name:
    	
Laurie   D. Medley
    
	
 
    	
Title:
    	
Vice   President

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