Document:

amrn-ex101_312.htm

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

Exhibit 10.1

EXECUTION VERSION

CONFIDENTIAL

FIRST AMENDMENT TO
THE CO-PROMOTION AGREEMENT

This First Amendment (the “Amendment”) to the March 31, 2014 Co-Promotion Agreement is entered into and effective as of July 25, 2017, by and among Amarin Pharmaceuticals Ireland Limited, a company organized under the laws of Ireland (registered number 408912) with offices at 2 Pembroke House Upper Pembroke Street 28-32, Dublin 2, Ireland (“Amarin Ireland”), and Amarin Pharma, Inc., a Delaware corporation with offices at 1430 Route 206 North, Suite 101, Bedminster, NJ 07921 (“Amarin Pharma”, and collectively with Amarin Ireland, “Amarin”), on the one hand, and Kowa Pharmaceuticals America, Inc., a Delaware corporation with offices at 530 Industrial Park Blvd, Montgomery, AL 36117 (“Kowa”), on the other hand (collectively, the “Parties”).

PRELIMINARY STATEMENTS

	
A.
	
WHEREAS, the Parties previously entered into the Co-Promotion Agreement, dated March 31, 2014 (the “Agreement”), pursuant to which, among other things, Amarin granted Kowa certain rights with respect to Sales of the Product in the Field in the Territory and Kowa agreed to co-promote the Product in the Field in the Territory;

	
B.
	
WHEREAS, Amarin and Kowa wish to amend the Agreement, and to make certain other agreements, as set forth in this Amendment; and

	
C.
	
WHEREAS, this Amendment supplements the Agreement and provides additional general and specific terms under which the Parties shall operate.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, including without limitation the mutual agreements and covenants set forth herein, the Parties hereby agree as follows:

1.Definitions.  Capitalized terms used herein that are not otherwise defined have the meanings set forth in the Agreement.

2.Additional Terms.

	
 
	
a.
	
The following payments shall be made within five (5) Business Days following the execution of this Amendment, which payments may be credited and offset against each other resulting in a net amount paid:

	
 
	
i.
	
Amarin shall pay Kowa the Co-Promote Fee for Q4 2016 of $[***].

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

	
 
	
ii.
	
Kowa shall pay Amarin the marketing expense payment for Q4 2016 of $[***], which Amarin invoiced Kowa on February 10, 2017, and the next marketing expense payment of $[***], which Amarin invoiced Kowa on May 30, 2017.

	
 
	
iii.
	
Amarin shall pay Kowa $[***], which reflects the original Co-Promote Fee for Q1 2017 of $[***], less $[***] to account for the credits described in Section 2.b. below, and less $[***] to account for a temporary adjustment in the royalty rate for Q1 2017 as described in paragraph (c) below.

	
 
	
b.
	
Kowa shall give Amarin a credit of $[***] to be divided equally into fourths for cash flow purposes and reduce each of the quarters’ payments by $[***]. Such reduction shall be applied to each of the quarterly Co-Promote Fees due Kowa [***].  For statement of operations purposes, the $[***] will be recognized by Amarin on an equal quarterly basis for 2017 and 2018.  Specifically, Amarin shall subtract $[***] from each of the four Co-Promote Fees otherwise due to Kowa under the Agreement in Q1, Q2, Q3 and Q4 2017, respectively.  

	
 
	
c.
	
Amarin shall pay Kowa $[***] to be divided equally into sevenths, with each seventh applied to increase each of the quarterly Co-Promote Fees due Kowa with respect to performance in Q2, Q3 and Q4 of 2017 and Q1, Q2, Q3 and Q4 of 2018.  Specifically, Amarin shall add $[***] to each of the Co-Promote Fees otherwise due to Kowa under the Agreement for performance in Q2, Q3 and Q4 of 2017 and Q1, Q2, Q3 and Q4 of 2018, respectively.

	
 
	
d.
	
[***].

3.Amendments.

	
 
	
a.
	
Section 1.91 of the Agreement is hereby amended from the date hereto to include the following definitions, in addition to the definition of “Target” which is unchanged:

“‘List of Targets’ means the Kowa list of [***] healthcare professionals that was approved by the JSC on or about May 2, 2017.”

	
 
	
b.
	
Section 4.4 of the Agreement is hereby amended from the date hereof to include a new subsection titled “Section 4.4.3 Amending List of Targets” and which provides:  “The Parties may agree, in the future, to amend the List of Targets, provided they do so in writing.”  If Kowa proposes to amend the List of Targets, Amarin must respond in writing to the proposed amendment within fourteen (14) calendar days. If Amarin does not respond in writing to a proposed amendment within fourteen (14) calendar days, Amarin will be deemed to have accepted the proposed amendment.  If Kowa proposes to amend its List of Targets, Kowa must send the proposed amendment to at least two Amarin JSC members to trigger the fourteen (14) day deadline above.  The Parties shall reach an agreement on any proposed amendment to the List of Targets within thirty (30) calendar days of the written proposal.  

If the Party to whom a proposed amendment is sent requests additional information, that Party must request the additional information in writing from the Party proposing the amendment within three (3) business days from receiving the proposed amendment.  If such a request is 

2

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

made, the fourteen (14) calendar day period to respond in writing and the thirty (30) calendar day period to reach agreement shall begin to run on the day such information is received by the requesting Party.  The Parties will discuss and agree to the content of such additional information to be sent at the first JSC meeting following the signing of this Amendment, which information shall be reasonably sufficient to inform a calculated business decision but not an unreasonable amount or unduly burdensome to the Party requesting the amendment.  

If the Parties cannot agree on a proposed amendment to the List of Targets within thirty (30) days, then either Party may refer the dispute to the Parties’ executive officers for resolution, who must confer in good faith, including at least one face-to-face meeting, and use their best efforts to resolve the dispute.  If the Parties’ executive officers cannot resolve the dispute within 14 days of its referral, then either Party may submit it to arbitration pursuant to Section 14 of the Agreement.

	
 
	
c.
	
Section 4.3.2 of the Agreement is hereby amended from the date hereof to include the following, which shall be referred to as “Section 4.3.2 (e)” and shall not be read in any way to limit the existing terms of the Agreement:

	
 
	
i.
	
[***];

	
 
	
ii.
	
[***];

	
 
	
iii.
	
[***];

	
 
	
iv.
	
The Parties shall confer and determine, and present to JSC for approval on or before August 15, 2017, the following items with respect to performance in 2018:  (1) training requirements for any Kowa Sales Representatives hired after September 20, 2017; and (2) refresher training requirements for Kowa Sales Representatives regarding Vascepa medical, marketing, and compliance.

	
 
	
v.
	
Any such requirements are in addition to any and all other rights and obligations in the Agreement, including but not limited to those set forth in Section 4.3.2 thereof.

	
 
	
d.
	
Section 4.4.1 of the Agreement is amended to include the following, which shall be referred to as “Section 4.4.1 (c)” and shall not be read in any way to limit the existing terms of the Agreement: 

[***]

	
 
	
e.
	
Section 4.4.1 of the Agreement is amended to include the following, which shall be referred to as “Section 4.4.1 (d)” and shall not be read in any way to limit the existing terms of the Agreement:

[***]

	
 
	
f.
	
Subject to Section 2(a) of this Amendment, Schedule 5.2 of the Agreement, “4. Year 2017” and “5. Year 2018,” are hereby superseded and replaced with the following [***] Co-Promote Fee applicable for performance in 2017 and 2018:

3

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

		
		
	
Year 2017
	
18%

	
Year 2018
	
[***]%

 

	
 
	
g.
	
Section 5.3.1 of the Agreement is hereby superseded and replaced with the following [***] Co-Promote Fee Tail Payment:

Upon Expiration.  In the event that this Agreement expires in accordance with Section 12.1, and subject to Section 2.2, then Amarin shall pay Kowa the following “Co-Promote Fee Tail Payment” in accordance with Section 13.5(a):

		
	
Relevant Period
	
co-promote fee tail payment

	
First 12 months after expiration:
	
[***]% of the Co-Promote Fee paid to Kowa during the last Year of the Term

	
Second 12 months after expiration:
	
[***]% of the Co-Promote Fee paid to Kowa during the last Year of the Term

	
Third 12 months after expiration:
	
[***]% of the Co-Promote Fee paid to Kowa during the last Year of the Term

 

	
 
	
h.
	
Section 7.5 of the Agreement is hereby amended to include the following, which shall be referred to as “Section 7.5.7” and shall not be read in any way to limit the existing terms of the Agreement:

[***]

4.Effect on the Agreement.  On and after the date hereof, each reference in the Agreement to “this Agreement”, “herein”, “hereof”, “hereunder” or words of similar import shall mean and be a reference to the Agreement as amended hereby.  Except as expressly modified and amended by this Amendment, all terms, covenants and conditions of the Agreement shall remain in full force and effect in accordance with their terms, and the Agreement, as amended by this Amendment, is hereby ratified and confirmed in all respects.  This Amendment shall supersede all previous writings and understandings between or among the parties.

5.Governing Law; Arbitration.  This Amendment will be subject to all terms and provisions of the Agreement, including, without limitation, Section 14 (Governing Law; Dispute Resolution; and Arbitration) of the Agreement as if fully set forth in this Amendment, provided, however, that Section 14.2.2 shall not apply to any dispute between the Parties under Section 3(b) or 3(j) of this Amendment.

6.Counterparts.  This Amendment may be executed simultaneously in any number of counterparts, any one of which need not contain the signature of more than one Party, but all such counterparts taken together shall constitute one and the same instrument.  This Amendment may be executed and delivered by facsimile or electronic mail transmission, and such transmission shall constitute an original.  Each Party shall execute, acknowledge and deliver such further instruments, and do such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Amendment.

4

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

*****

[Remainder of page intentionally left blank; signature page follows.]

 

5

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

IN WITNESS WHEREOF, each Party has caused this Amendment to be executed by its duly authorized representative as of the day and year first above written.

KOWA PHARMACEUTICALS AMERICA, INC.

By: /s/ Ben Stakely

Name:  Ben Stakely

Title:  President and Chief Executive Officer

AMARIN PHARMA, INC.

By: /s/ John Thero

Name: John Thero

Title: President and Chief Executive Officer

AMARIN PHARMACEUTICALS IRELAND LIMITED

By: /s/ Patrick O’Sullivan

Name: Patrick O’Sullivan

Title: Director

 

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

EXHIBIT A

[***]

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.  ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

EXHIBIT B

[***]dvn-ex101_290.htm

Exhibit 10.1

 

Devon Energy Corporation

ID: 73-1567067

333 West Sheridan Avenue

Oklahoma City, Oklahoma 73102-5015

 

 

 

 

Notice of Grant of RESTRICTED STOCK Award

 

and Award Agreement

 

 

 

 

Participant Name

Grant Date: Grant Date

Grant Type: RSA 

Award No.: Client Grant ID

 

 

 

Effective Grant Date, you have been granted a Restricted Stock Award of Number of Shares Granted shares of Devon Energy Corporation (the “Company”) Common Stock.  These shares are restricted until the vesting date shown below. 

 

 

			
	
Anniversary of Grant Date
	
 
	
% of Shares to Vest

	
1st Anniversary
	
 
	
100%

 

 

 

By accepting this agreement online, you and the Company agree that this award is granted under and governed by the terms and conditions of the Company's 2017 Long-Term Incentive Plan and the Award Agreement, both of which are attached and made a part of this document.

 

 

 

DEVON ENERGY CORPORATION

2017 LONG-TERM INCENTIVE PLAN

NON-MANAGEMENT DIRECTOR

RESTRICTED STOCK AWARD AGREEMENT 

 

THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is entered into as of Grant Date (the “Date of Grant”), by and between Devon Energy Corporation, a Delaware corporation (the “Company”), and Participant Name (the “Participant”);

WITNESSETH:

WHEREAS, the Company has previously adopted the “Devon Energy Corporation 2017 Long-Term Incentive Plan” (the “Plan”); and

WHEREAS, the Participant is a nonemployee director of the Company and it is important to the Company that the Participant be encouraged to remain a director of the Company; and

WHEREAS, in recognition of such facts, the Company desires to award to the Participant Number of Shares Granted shares of the Company’s Common Stock under the Plan subject to the terms and conditions of this Agreement; 

NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants herein contained, the Participant and the Company agree as follows:

1.The Plan.  The Plan, a copy of which is attached hereto, is hereby incorporated by reference herein and made a part hereof for all purposes, and when taken with this Agreement shall govern the rights of the Participant and the Company with respect to the Award (as defined below).

2.Grant of Award.  The Company hereby grants to the Participant an award (the “Award”) of Number of Shares Granted shares of the Company’s Common Stock (the “Restricted Stock”), on the terms and conditions set forth herein and in the Plan.

3.Terms of Award.

(a)Escrow of Shares.  A certificate or book-entry registration representing the Restricted Stock shall be issued in the name of the Participant and shall be escrowed with the Secretary subject to removal of the restrictions placed thereon or forfeiture pursuant to the terms of this Agreement.

(b)Vesting.  100% of the shares of the Restricted Stock is scheduled to vest on the first anniversary date of the Date of Grant (the “Vesting Date”).  If the Participant’s Date of Termination has not occurred as of a Vesting Date, then the Participant shall be entitled, subject to the applicable provisions of the Plan and this Agreement having been satisfied, to receive on or within a reasonable time after the Vesting Date, the shares scheduled to vest as of the Vesting Date.  The portion of the Restricted Stock that has vested pursuant to the terms of this Agreement shall be deemed “Vested Stock.”

The Participant shall forfeit the unvested portion of the Award (including the underlying Restricted Stock and Accrued Dividends) upon the occurrence of the Participant’s Date of Termination unless the Award becomes vested under the circumstances described in paragraphs (i), (ii), or (iii) below.

(i)The Award shall become fully vested upon the occurrence of a Change in Control Event that occurs prior to the Participant’s Date of Termination.

(ii)The Award shall become fully vested upon the Participant’s Date of Termination if the Participant’s Date of Termination occurs by reason of the Participant’s death.  The Committee may, in its sole discretion, elect to accelerate vesting of all or any portion of the Award if the Date of Termination occurs by reason of the Participant’s disability or occurs under other special circumstances (as determined by the Committee and permitted pursuant to the Plan).

(iii)The Award shall become fully vested upon the Participant’s Date of Termination if the Participant’s Date of Termination occurs by reason of the Participant’s Mandatory Retirement. 

(c)Voting Rights and Dividends.  The Participant shall have all of the voting rights attributable to the shares of Restricted Stock.  Any dividends declared and paid by the Company with respect to shares of Restricted Stock (“Accrued Dividends”) shall not be paid to the Participant until such Restricted Stock becomes Vested Stock.  Accrued Dividends shall be held by the Company as a general obligation of the Company and paid to the Participant at the time the underlying Restricted Stock becomes Vested Stock.

(d)Vested Stock – Removal of Restrictions.  Upon Restricted Stock becoming Vested Stock, all restrictions shall be removed from the certificates or book-entry registrations and the Participant shall be provided a confirmation of the release of such Vested Stock, representing such Vested Stock as free and clear of all restrictions, except for any applicable securities laws restrictions, together with a payment in the amount of all Accrued Dividends attributed to such Vested Stock without interest thereon.

4.Legend.  The shares of Restricted Stock covered by the Award shall be subject to the restrictions described in the following legend, which shall appear on any individual certificate or book-entry registration representing the Award:

“THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE OR BOOK-ENTRY REGISTRATION ARE SUBJECT TO AND ARE TRANSFERRABLE ONLY IN ACCORDANCE WITH THAT CERTAIN RESTRICTED STOCK AWARD AGREEMENT DATED Grant Date UNDER THE DEVON ENERGY CORPORATION 2017 LONG-TERM INCENTIVE PLAN.  ANY ATTEMPTED TRANSFER OF THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE OR BOOK-ENTRY REGISTRATION IN VIOLATION OF SUCH AGREEMENT SHALL BE NULL AND VOID AND WITHOUT EFFECT.  A COPY OF THE AGREEMENT MAY BE OBTAINED FROM THE SECRETARY OF DEVON ENERGY CORPORATION.”

5.Delivery of Forfeited Shares.  The Participant authorizes the Secretary to deliver to the Company any and all shares of Restricted Stock that are forfeited under the provisions of this Agreement.  

6.Nontransferability of Award.  The Participant shall not have the right to sell, assign, transfer, convey, dispose, pledge, hypothecate, burden, encumber, or charge the Award or any Restricted Stock or any interest therein in any manner whatsoever.

7.Notices.  All notices or other communications relating to the Plan and this Agreement as it relates to the Participant shall be in writing and shall be delivered electronically, personally, or mailed (U.S. mail) by the Company to the Participant at the then current address as maintained by the Company or such other address as the Participant may advise the Company in writing.

8.Binding Effect and Governing Law.  This Agreement shall be (i) binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, and assigns except as may be limited by the Plan, and (ii) governed by and construed under the laws of the State of Oklahoma.

 

9.Award Subject to Claims of Creditors.  The Participant shall not have any interest in any particular assets of the Company, its parent, if applicable, or any Subsidiary or Affiliated Entity by reason of the right to earn an Award (including Accrued Dividends) under the Plan and this Agreement, and the Participant or any other person shall have only the rights of a general unsecured creditor of the Company, its parent, if applicable, or a Subsidiary or Affiliated Entity with respect to any rights under the Plan or this Agreement.

10.Captions.  The captions of specific provisions of this Agreement are for convenience and reference only, and in no way define, describe, extend or limit the scope of this Agreement or the intent of any provision hereof.

11.Counterparts.  This Agreement may be executed in any number of identical counterparts, each of which shall be deemed an original for all purposes, but all of which taken together shall form one agreement.

12.Definitions.  Words, terms, or phrases used in this Agreement shall have the meaning set forth in this Section 12.  Capitalized terms used in this Agreement but not defined herein shall have the meaning designated in the Plan.

(a)“Accrued Dividends” has the meaning set forth in Section 3(c).

(b)“Agreement” has the meaning set forth in the preamble.

(c)“Award” has the meaning set forth in Section 2.

(d)“Company” has the meaning set forth in the preamble.

(e)“Date of Grant” has the meaning set forth in the preamble.

(f)“Date of Termination” means the first day occurring on or after the Date of Grant on which the Participant is not a member of the Board.

(g)“Mandatory Retirement” means the Participant’s mandatory retirement from the Board of Directors at the next annual meeting of shareholders following the date the Participant reaches his 73rd birthday.

(h)“Participant” has the meaning set forth in the preamble.

(i)“Plan” has the meaning set forth in the recitals.

(j)“Restricted Stock” has the meaning set forth in Section 2.

(k)“Vested Stock” has the meaning set forth in Section 3(b).

(l)“Vesting Date” has the meaning set forth in Section 3(b).

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written.

“COMPANY”DEVON ENERGY CORPORATION,

a Delaware corporation

 

 

“PARTICIPANT”Participant Name

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