Document:

atr_EX10_17

		

			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

		
			Exhibit 10.17
		

		
			Employment Contract
		

		
			with indefinite duration
		

		

		
			 
		

		
			Between
		

		
			 
		

		
			 
		

		
			AptarGroup SAS,  
		

		
			Registered Office: 147, rue du Président Roosevelt, 78100 Saint-Germain-en-Laye, France.
		

		
			Company registration number: 383 307 337
		

		
			Represented by Peter Pfeiffer, acting as “Président”
		

		
			 
		

		
			 
		

		
			and 
		

		
			 
		

		
			 
		

		
			Mr. Gaël TOUYA
		

		
			 
		

		
			 
		

		
			The parties hereto agree as follows:
		

		
			 
		

		
			Article 1 – General Context
		

		
			 
		

		
			The Aptargroup group (hereafter “the Aptar Group”) is an industrial group which designs, manufactures and sells dispensing systems, sprays and closures for the packaging of consumer products in the personal care, fragrance, cosmetic, pharmaceutical, household, food, and beverage markets.  The development of the Aptar Group is global.
		

		
			 
		

		
			Mr. Gaël TOUYA was hired by the company Valois SAS on April 19th, 1995, then he was transferred to China within the company Aptar Suzhou Dispensing Systems Co Ltd until July 1st, 2008, when he was employed by the company AirlesSystems SAS to hold the responsibilities of Deputy General Manager. Since January 1st, 2010, Mr. Gaël TOUYA is Vice – President Business Development “Skin Care & Color Cosmetic” within Beauty + Home Segment, further to the strategic realignment decided by the Aptar Group during autumn 2009. Valois SAS, Aptar Suzhou Dispensing Systems Co Ltd and AirlesSystems are all subsidiary companies of the Aptar Group.
		

		
			 
		

		
			Mr. Gaël TOUYA is destined to hold the responsibilities of President Food & Beverage Europe for the Aptar Group as from January1st, 2012, at the latest.
		

		
			 
		

		
			AptarGroup SAS, in Saint-Germain-en-Laye, France, gathers the transverse and central functions located in Europe and provides strategic services and general management assistance to the affiliates of the Aptar Group affiliates, together with Aptargroup, Inc., its ultimate shareholder, located in Crystal Lake, USA.  In this context, Mr. Gael TOUYA will be employed by AptarGroup SAS.
		

		
			
		

		
			

		 

		

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			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

Article 2 – Collective Bargaining Agreement
		

		
			 
		

		
			This contract is governed by the Collective Bargaining Agreement of the French Plastics Industry and by the internal rules of AptarGroup SAS.
		

		
			 
		

		
			Given that AptarGroup SAS is a subsidiary of AptarGroup, Inc., and the nature of Mr. Gaël TOUYA’s functions, this contract shall also be bound by rules and policies directly issued by AptarGroup, Inc. in respect of executives of the Aptar Group, notably by the Compliance Manual and related policies, including the Code of Business and Ethics.
		

		
			 
		

		
			Article 3 – Functions
		

		
			 
		

		
			Mr. Gaël TOUYA holds the position of “President Food & Beverage Europe”.
		

		
			 
		

		
			Operationally, Mr. Gaël TOUYA reports to Food & Beverage Segment President.
		

		
			 
		

		
			Hierarchically, Mr. Gaël TOUYA reports to AptarGroup SAS’ “Président”.
		

		
			 
		

		
			The primary purpose of Mr. Gaël TOUYA’s responsibilities is to direct all activities of the Europe region, implement the Food + Beverage strategy in coordination with other global regions and assure profitable growth. Mr. Gaël TOUYA will participate and contribute to the Food + Beverage Directoire.
		

		
			 
		

		
			Mr. Gaël TOUYA’s functions may evolve according to the organization and the activities of the Aptar Group in general.
		

		
			 
		

		
			Mr. Gaël TOUYA is classified as executive, “940 points” on the scale of the French Collective Bargaining Agreement of the Plastic Industry. Mr. Gael TOUYA has the status of a senior executive manager and is as such entitled to all rights and benefits granted to senior executive managers by the French Aptar Group companies. Because of this level and responsibilities, Mr. Gaël TOUYA will be excluded from the application of the reduction in the number of working hour’s regulation of September 10th, 2001, implemented within AptarGroup SAS. 
		

		
			 
		

		
			Article 4 – Term of Contract – Period of Notice
		

		
			 
		

		
			This contract shall remain in full force and effect for an unlimited period. It is effective as of January 1st, 2012 at the latest. This contract is established as part of a transfer within the Aptar Group, Mr. Gaël TOUYA is not subject to a trial period.
		

		
			 
		

		
			Each party has the right to terminate this contract according to the conditions in this respect provided for by the law and subject, except in the event of gross misconduct, to the legal and conventional provisions in respect of notification of dismissal or resignation.
		

		
			
		

		
			

		 

		

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			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

Article 5 – Compensation
		

		
			 
		

		
			Mr. Gaël TOUYA will receive a base gross annual salary equal to € 170 000 (One Hundred Seventy Thousand Euros), settled in 12 (twelve) equal monthly payments, in addition to which, he is entitled to:
		

		
			 
		

			
	
			
				 ×
			

			
	
			
			the Aptar annual bonus for executive managers, as described in a separate document which may be amended from time to time; this bonus may amount up to 100% of the base salary;

		
			 
		

			
	
			
				 ×
			

			
	
			
			an « intéressement » premium, based on AptarGroup SAS’ year end results, which may represent up to 8.5% of the annual basis compensation;

		
			 
		

			
	
			
				 ×
			

			
	
			
			a contribution system from AptarGroup SAS on the company’s saving plan (« plan d’épargne d’entreprise » - « PEE »), which amounts to € 4,200 (four thousand and two hundred Euros) per year subject to an employee’s contribution during the same period of € 1,400 (thousand and four hundred Euros) to the PEE.

		
			 
		

		
			AptarGroup SAS will provide Mr. Gaël TOUYA, with a company car according to the Aptar French car policy. This company car will be taxed as a salary in kind according to the then prevailing tax rules as defined by AptarGroup SAS.
		

		
			 
		

		
			Article 6 – Place of Work
		

		
			 
		

		
			Mr. Gaël TOUYA’s main place of work is AptarGroup SAS’ registered office. 
		

		
			 
		

		
			Depending on the needs of the position he holds, Mr. Gaël TOUYA may undertake business trips and temporary missions, either in France or abroad; such business trips shall not bring about any change of place of residence and will be subject to reimbursement of professional expenses on presentation of the corresponding receipts.
		

		
			 
		

		
			Moreover, for reasons relating to the organization and the smooth functioning of AptarGroup SAS or of the Aptar Group, Mr. Gaël TOUYA’s main place of work could be modified.  Such transfer shall comply, as the case may be, with the Aptar Group’s relocating policy.
		

		
			 
		

		
			Article 7 – Working Hours and Vacation
		

		
			 
		

		
			Given the level of initiative that is required by the position that Mr. Gaël TOUYA holds, the latter should devote all the time that is necessary in this respect.
		

		
			 
		

		
			Mr. Gaël TOUYA benefits from the same rights in respect of paid vacation as what is common to all employees of the Company, according to the provisions of the Collective Bargaining Agreement of the French Plastics Industry.  
		

		
			 
		

		
			Article 8 – Terms and Conditions 
		

		
			 
		

		
			Mr. Gaël TOUYA shall strictly and absolutely refrain from disclosing any information or confidential material he might obtain in the course of his function, regardless of their nature or origin. This obligation shall survive and continue in full force and effect despite termination and regardless of the reason of its termination.
		

		
			 
		

		
			Mr. Gaël TOUYA is also bound by the various Aptar Group policies that affect the category of executives he belongs to, such as, and without limitation, the “Conflict of Interest Policy” and “Insider Trader Policy”.
		

		
			
		

		
			

		 

		

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			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

Finally, Mr. Gaël TOUYA shall inform the Company, without delay, of any change that might occur in respect of his civil status, family situation, military situation, address, etc...
		

		
			 
		

		
			Article 9 – Non Competition
		

		
			 
		

			
	
			
				 9.1
			

			
	
			
			Because of AptarGroup SAS’ and the Aptar Group’s needs to protect all its techniques, methods, processes, know-how and other information that may be conveyed to Mr. Gaël TOUYA and that contribute to the efficiency of its business, Mr. Gaël TOUYA, given the nature of his responsibilities, shall refrain from:

		
			 
		

			
	
			
				 ·
			

			
	
			
			Working, either directly or indirectly, in any form whatsoever or through any intermediary, for the benefit of private individuals or corporate entities or any other organization having a Competing or Similar Activity.

		
			 
		

			
	
			
				 ·
			

			
	
			
			Acquiring an interest, whether directly, indirectly or through any intermediary, in any form whatsoever (e.g. creating a business, acquiring a stake) in any private individual or corporate entity or any other organization having a Competing or Similar Activity. 

		
			 
		

		
			“Competing or Similar Activity” shall be understood as anything with a direct or indirect relation to the activity of the Aptar Group, i.e. realization and production of dispensing systems, sprays and closures for the packaging industry.  
		

		
			 
		

			
	
			
				 9.2
			

			
	
			
			This non-competition obligation shall apply worldwide.

		
			 
		

		
			The geographic scope of this clause shall apply both to the location of the domicile or registered office of the above-mentioned private individual or corporate entity having a Competing or Similar Activity and to the pursuit of the Competing or Similar Activity as such.
		

		
			 
		

			
	
			
				 9.3
			

			
	
			
			The present clause shall apply for a period of 2 (two) years commencing on the date of the effective termination of the present contract, whether or not Mr. Gaël TOUYA works for the duration of his period of notice and regardless of the reason for the termination of the present contract.

		
			 
		

			
	
			
				 9.4
			

			
	
			
			In consideration for this non-competition obligation, Mr. Gaël TOUYA shall receive, except in the event of gross misconduct, a fixed amount for special compensation equal to 50% (fifty percent) of the average monthly salary received by him during his last 12 (twelve) months’ presence in the Company. This compensation shall be paid as from the effective end of his activity for the duration of implementation of this clause 9, until, if need be, the effective date of retirement.

		
			 
		

			
	
			
				 9.5
			

			
	
			
			In the event Mr. Gaël TOUYA does not comply with the present clause, the Company shall be released from its obligation to pay financial compensation.

		
			 
		

		
			Furthermore, Mr. Gaël TOUYA shall automatically owe a sum corresponding to 2 (two) years’ salary based on the average monthly salary received by him during the last 12 (twelve) months’ presence in the Company. Such sum shall be paid to AptarGroup SAS for each infringement observed, without formal notice to end the competing activity being necessary.
		

		
			 
		

		
			The payment of such sum does not exclude any right that AptarGroup SAS reserves to sue Mr. Gaël TOUYA for compensation for the harm actually caused and to take out an injunction to ensure that he ends the Competing or Similar Activity.
		

		
			 
		

			
	
			
				 9.6
			

			
	
			
			However, AptarGroup SAS reserves the option of releasing Mr. Gaël TOUYA from the non-competition obligation.  In this case, the Company shall inform Mr. Gaël TOUYA accordingly by registered letter, return receipt requested, within one month of notification of the termination of his employment contract.  AptarGroup SAS also reserves the option of releasing Mr. Gaël TOUYA from the non-competition obligation at the end a one (1) year period commencing on the date of the effective termination of the

		
			
		

		
			

		 

		

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			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

present contract; in such case, Mr. Gaël TOUYA will be informed by registered letter return receipt requested, within one month prior to the end of this one year period.
		

		
			 
		

		
			The Company shall then be released from its obligation to pay the financial compensation provided for in paragraph 9.4 above.
		

		
			 
		

			
	
			
				 9.7
			

			
	
			
			The provisions of this clause 9 shall not be exclusive of any other Non Competition clause provided for in any other document executed by Mr. Gaël TOUYA with any company within the Aptar Group, notably, but not limited to, the Aptargroup, Inc. Stock Option Agreements for Employees.

		
			 
		

		
			Article 10 – Non Solicitation of Employees
		

		
			 
		

		
			Mr. Gaël TOUYA hereby commits not to, without AptarGroup SAS’ or the Aptar Group’s prior written consent solicit or having anybody solicit, whether directly or indirectly, in the framework of an activity outside AptarGroup SAS or the Aptar Group, the services of employees, whether full-time or part-time or under discussions, of AptarGroup SAS or any other affiliate of the Aptar Group.
		

		
			 
		

		
			Article 11 – Intellectual Property
		

		
			 
		

		
			During the term of the present contract, and for a one year period after the termination of this contract notwithstanding the cause of its termination, Mr. Gaël TOUYA hereby agrees and acknowledges, without reservation or exception, and without any additional compensation other than what is provided for in this contract:
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			To inform the Company of all inventions, improvements or plans carried out by himself in the field of activity of the Aptar Group;

		
			 
		

			
	
			
				 ·
			

			
	
			
			To vest in the Company or in any company within the Aptar Group requesting it, the exclusive ownership in France or abroad of such inventions, improvements or plans;

		
			 
		

			
	
			
				 ·
			

			
	
			
			To fill in for that purpose all formalities and procedures necessary to allow the Company to be the legitimate owner of the abovementioned inventions, improvements, plans etc...

		
			 
		

		
			Furthermore Mr. Gaël TOUYA shall waive to the Company or to any company within the Aptar Group requesting it, all title and rights, he may have in France or abroad, to an invention made with a third party and within the scope materials, machines or products manufactured and sold by the Aptar Group.
		

		
			 
		

		
			In return for such transfer and waiver of ownership, AptarGroup SAS shall, any time it deems it fair and possible, have the name of  Mr. Gaël TOUYA figure as inventor in the summary of the patent that will be filed by the said company to protect Mr. Gaël TOUYA’s invention.  Both parties will also discuss, in all fairness, the possibility of compensation, the amount and the form of which will be, in any case, appraised by the said company.
		

		
			 
		

		
			Article 11 – Miscellaneous
		

		
			 
		

		
			12.1    The cancellation of any one of the provisions of this contract shall not terminate the contract as long as the litigious clause is not considered by both parties as essential and determining to the agreement herein, and the cancellation does not challenge the general balance of the contract. In the event of cancellation of any of the provisions herein, the parties shall, in any case, endeavor to negotiate in good faith the drawing up of an economically equivalent clause.
		

		
			 
		

		
			12.2    The failure of either party at any time to enforce or request for enforcement of any provision of this contract shall not be construed as a waiver of such provision.
		

		
			 
		

		
			
		

		
			

		 

		

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			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

12.3    Any waiver by a party of any of its rights, or any change of any provision of this contract, shall not come into force except in writing, and if duly signed by both parties. 
		

		
			 
		

		
			12.4    Any dispute, controversy or claim arising out of or in connection with this contract, or the breach, termination or invalidity hereof, that the parties are unable to resolve between themselves, shall be submitted to the French Conciliation Board (“Conseil des Prud’hommes”) or to any court having jurisdiction on AptarGroup SAS on the date the dispute is filed.
		

		
			 
		

		
			This employment contract is drawn up in two original copies.
		

		
			 
		

		
			Executed in Saint-Germain-en-Laye, on March 30th, 2011,
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						On behalf of

					
					
						 

				
	
					
						AptarGroup SAS

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Peter Pfeiffer

					
					
						 

				
	
					
						Peter PFEIFFER

					
					
						 

				
	
					
						“Président”

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						(« Read and Approved »)

					
					
						 

				
	
					
						/s/ Gael Touya

					
					
						 

				
	
					
						Mr. Gaël TOUYA

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

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			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

AMENDMENT TO THE EMPLOYMENT CONTRACT 
		

		
			 
		

		
			 
		

		
			By and between the undersigned :
		

		
			 
		

		
			 
		

		
			Aptargroup UK Holdings Ltd. – French Branch (assuming the rights and obligations of Aptargroup SAS, further to a Business Transfer Agreement effective on January 1st, 2015),  
		

		
			 
		

		
			Located at 36-38 rue de la Princesse, 78430 Louveciennes, France
		

		
			Represented by Ms. Ursula Saint Léger, Group Vice President Human Resources, acting as Legal Representative; 
		

		
			 
		

		
			And 
		

		
			 
		

		
			 
		

		
			Mr Gaël Touya,  
		

		
			 
		

		
			The parties hereto agree as follows:
		

		
			 
		

			
	
			
				Article 1
			Duties

		
			 
		

		
			As of January 1st, 2016, Mr. Gaël Touya shall hold the position of President, Food + Beverage segment of the Aptar Group.
		

		
			 
		

		
			At operational level, Mr. Gaël Touya shall report directly to the Group President and Chief Executive Officer.
		

		
			 
		

		
			The duties of Mr. Gaël Touya shall essentially be to direct all global activities of the "Food + Beverage” segment and ensure its growth. 
		

		
			 
		

		
			Mr. Gaël Touya shall be a member of the Group Executive Committee ("Excom"). 
		

		
			 
		

		
			The duties of Mr. Gaël Touya may, by their nature, evolve according to the organization and the activities of of the Aptar Group in general.
		

		
			 
		

		
			 
		

			
	
			
				Article 2
			Remuneration

		
			 
		

		
			As of January 1st, 2016, Mr. Gaël Touya will receive a base gross annual salary equal to 
€ 325.000 (three hundred twenty five thousand euros)120 000, settled in 12 (twelve) equal monthly payments, in addition to which he is entitled to : 
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			an annual bonus which may represent up to 100% of the base salary. This annual bonus is defined according to the rules of the Aptar Group, as described in a separate document which may be amended from time to time.  

		
			 
		

			
	
			
				 ·
			

			
	
			
			a profit sharing premium (« intéressement »), based on Aptargroup UK Holdings Ltd. – French Branch’s criteria, which may represent up to 8.5% of the annual basis compensation ;

		
			 
		

			
	
			
				 ·
			

			
	
			
			a contribution system from Aptargroup UK Holdings Ltd. – French Branch on the company’s saving plan (« plan d’épargne d’entreprise » - « PEE »), which amounts to € 4,200 (four thousand and two hundred 

		 

		

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			In this translation an attempt has been made to be as literal as possible without jeopardizing the overall continuity. Inevitably, differences may occur in translation, and if so the French text will by law govern.

		

		

			 

		

			
	
			
				 ·
			

			
	
			
			Euros) per year subject to an employee’s contribution during the same period of € 1,400 (thousand and four hundred Euros) to the PEE ;

		
			 
		

			
	
			
				 ·
			

			
	
			
			a contribution system from Aptargroup UK Holdings Ltd. – French Branch on the company’s retirement saving plan (« plan d’épargne retraite collectif » - « PERCO »), which amounts to € 250 (two hundred and fifty Euros) per year subject to an employee’s contribution during the same period of € 84 (eighty four Euros) to the PERCO.

		
			 
		

		
			Aptargroup UK Holdings Ltd. – French Branch will provide Mr. Gaël Touya with a company car according to the Aptar French car policy. This company car will be taxed as a salary in kind according to the then prevailing tax rules defined by Aptargroup UK Holdings Ltd.  
		

		
			 
		

		
			 
		

		
			All the other provisions of Gaël Touya's initial contract remain unchanged and shall apply “mutatis mutandis”. 
		

		
			 
		

		
			This amendment to the employment contract is drawn up in two originals copies. 
		

		
			 
		

		
			Executed in ParisLouveciennes, on February, 10th 2016,
		

		
			 
		

		
			 
		

		
			("Read and Approved ")
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Ursula Saint Léger

					
					
						 

					
					
						/s/ Gael Touya

				
	
					
						Ursula Saint Léger

					
					
						 

					
					
						Gaël Touya

				
	
					
						Legal representative

					
					
						 

					
					
						("Read and Approved ")

				

		
			 
		

		
			 
		

		 

		

			Page 8 of 8exhibit_4-29.htm

Exhibit 4.29

 

THIRD AMENDMENT TO THE

	
AMENDED AND RESTATED FRACTION IV-1 PASTE SUPPLY AGREEMENT

 

This Third Amendment to the Amended and Restated Fraction IV-1 Paste Supply Agreement (“Third Amendment”) effective this 1st day of January, 2015 (“Effective Date”), by and between Baxter Healthcare Corporation having a place of business at One Baxter Way, Westlake Village, California 91361 (hereinafter “BAXTER”), and Kamada Ltd., having a place of business at Science Park, Kiryat Weizmann, 7 Sapir St., Ness-Ziona, 74036, Israel (hereinafter “KAMADA”).  BAXTER and KAMADA shall collectively be referred to as the "Parties”.

 

RECITALS

WHEREAS, the Parties entered into an Amended and Restated Fraction IV-1 Paste Supply Agreement (“Agreement”) effective August 23, 2010; a First Amendment (“First Amendment”) to the Amended and Restated Fraction IV-1 Paste Supply Agreement dated May 10, 2011; a Second Amendment (“Second Amendment”) to the Amended and Restated Fraction IV-1 Paste Supply Agreement dated June 22, 2011; and

WHEREAS, the Parties desire to enter into a Third Amendment of the Agreement in order to replace the specifications referenced in Section 1 a. and Exhibit A of the Agreement; replace the contact notices in Section 11 of the Agreement; replace Exhibit B in its entirety; replace Exhibit C in its entirety; and, replace Exhibit D in its entirety from the Agreement.

NOW THEREFORE, it is hereby agreed as follows:

	
  

	
1.

	
Section 1(a) of the Agreement and Exhibit A “Product Specifications” of the Agreement shall be deleted in its entirety and shall be replaced with the following paragraph and the attached Exhibit A and incorporated herein by reference to this Third Amendment.

“Baxter shall supply to Kamada Paste that meets the specifications as set forth in Exhibit A which is attached to this Amendment and incorporated herein by reference in accordance with FDA regulations and guidelines (collectively, the “Specifications”) for further processing by Kamada for use in humans.”

	
  

	
2.

	
Section 11 of the Agreement shall be deleted in its entirety and shall be replaced with the following paragraph and incorporated herein by reference to this Third Amendment.

Notices.  All notices given under this Agreement shall be in writing and shall be given as of the date it is in any one of the following methods: (1) hand delivered; (2) sent by facsimile or electronic transmission; (3) mailed (U.S. or international) to the parties at the addresses set forth below, or such other addresses as the parties may designate in writing.

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Third Amendment to the Amended and Restated Fraction IV-1 Paste Supply Agreement

 

  

  

  

 

	  	
Notice to:

	
Kamada Ltd.

	  	 	
7 Sapir St. Kiryat Weizmann

	  	 	
Ness-Ziona 74036

	  	 	
Israel

	  	 	
Attn:  President/CEO

	  	  	  
	  	
Notice to:

	
Baxalta US Inc.

	  	 	
4501 Colorado Boulevard

	  	 	
Los Angeles, CA 90039

	  	 	
Attn: Plant Manager

	  	  	  
	  	
Copy to:

	
Baxalta US Inc. – BioLife Plasma Services L.P.

	  	 	
One Baxter Way

	  	 	
Westlake Village, CA  91361

	  	 	

Attn: Logistics, Contract Manager

 

	 	
3. 

	
Per Section 12 “Assignment” Baxter Healthcare Corporation has assigned this Agreement to Baxalta US Inc. All references to Baxter in the Agreement shall now be read to refer to Baxalta.

	 	
4. 

	
Section 14 “Entire Agreement; Waiver” shall be deleted in its entirety and shall be replaced with the following paragraph and incorporated herein by reference to this Third Amendment.

“Entire Agreement; Waiver. This Agreement, including the Exhibits hereto, the TLA and the MSDA, constitute the entire agreement between the Parties relating to the subject matter thereof, and all prior proposals, discussions, letters and agreements by and between the Parties and relating to the subject matter herein are hereby suspended and rendered null and void, except for the Confidential Disclosure Agreement dated March 31, 2006.  None of the terms of this Agreement shall be deemed to be waived by either Party or amended unless such waiver or amendment is written and signed by both Parties, and recites specifically that it is a waiver of, or amendments to, the terms of this Agreement.  Unless the Parties agree in writing, including by mutual signature on Kamada’s Purchase Orders, the terms of this Agreement shall take precedence over Purchase Orders, and any conflicting or inconsistent terms of Kamada’s purchase Order shall be null and void”.

	 	
5. 

	
Section 21 “Baxter Paste Record Inspection of Kamada” is added to this Agreement and reads asfollows:

“Baxter Paste Record Inspection. Baxter shall have the right to inspect Kamada’s records for the purpose of verifying the traceability and reconciliation of the use of No Charge Paste (as defined in Exhibit C) from No Charge Paste receipt through manufacturing into finished Glassia product.  Baxter shall have access to such documents provided for in this Agreement for the preceding [*****], at reasonable intervals (but no more frequently than once in any [*****] period) and upon not less than [*****] prior written notice. Upon receipt of written notice, Baxter and Kamada shall confer to agree upon an acceptable date for the inspection, taking into account normal activities of Kamada’s manufacturing function.  Baxter’s access to Kamada’s documents shall include No Charge Paste receipt reports, the Paste tractability information report from the No Charge Paste manufacturing batch records, No Charge Paste consumption reports and other available reports that link the traceability of No Charge Paste usage and manufacturing of paste lots into finished Glassia product.  Preferably, such reports shall be provided from Kamada’s validated ERP system(s) (or equivalent) if available. All expenses related to such inspection shall be borne by Baxter.”

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Third Amendment to the Amended and Restated Fraction IV-1 Paste Supply Agreement

 

  

Page 2 of 10

  

 

	 	
6. 

	
Exhibit A “Product Specifications” of the Agreement shall be deleted in its entirety and shall be replaced with a new Exhibit A “Product Specifications” as attached to this Third Amendment.

	 	
7. 

	
Exhibit B “Quality Agreement” of the Agreement shall be deleted in its entirety and shall be replaced with a new Exhibit B “Quality Agreement” as attached to this Third Amendment.  The Parties acknowledge and agree that the Quality Agreement in Exhibit B of the Agreement may be modified and replaced from time to time as mutually agreed to by the Parties and that any future modified version of the Quality Agreement will not require an amendment to the Agreement with the sole exception of any change made to the Product Specification Fr. IV-1 Paste, Los Angeles which will require an amendment.

	 	
8. 

	
Exhibit C “Prices and Payment Terms” shall be deleted in its entirety and shall be replaced with a new Exhibit C “Prices and Payment Terms” as attached to this Third Amendment.

	 	
9. 

	
Exhibit D “Forecasting” shall be deleted in its entirety and shall be replaced with a new Exhibit D “Forecasting” as attached to this Third Amendment.

 

Except as specifically modified herein, all other terms and conditions of the Agreement and Exhibits shall remain in full force and effect and are hereby affirmed, confirmed and ratified.

IN WITNESS WHEREOF, the Parties have caused this Third Amendment to be executed by their duly authorized representatives.

 

	
BAXALTA US INC.

 

	
KAMADA LTD.

 

	
By:/s/ Ludwig Hantson                                         

Name: Ludwig Hantson

Title: CVP, President – Bioscience

 

Date: July 19, 2015                                                      

 

	
By: /s/ David Tsur                                                      

Name: David Tsur

Title: Chief Executive Officer

 

Date: 5/28/15                                           

 

	  	
By: /s/ Gil Efron                                          

Name: Gil Efron

Title: Chief Financial Officer

 

Date: 5/28/15                                           

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Third Amendment to the Amended and Restated Fraction IV-1 Paste Supply Agreement

 

  

Page 3 of 10

  

 

 

 

Exhibit A to the Third Amendment

of the Amended and Restated Fr. IV-1 Paste Supply Agreement

Product Specifications

1.  Product Specifications - Paste is manufactured according to the specifications attached as Attachment 1, “Product Specification Fr. IV-1 Paste, Los Angeles” attached hereto.

 

2.  Paste Dating - At time of delivery, all batches of the Paste supplied to Kamada hereunder shall be no older than [*****] from the date of separation; provided a batch of Paste may be up to [*****] from the date of separation with the prior written approval of Kamada.

 

3.  Paste Flavor - Each manufacturing pool consists exclusively of either recovered plasma or source plasma.  Beginning [*****], the paste supply to Kamada shall solely consist of paste that is manufactured by filter press from source or recovered plasma.

 

4.  Paste Samples - Each shipment of Paste shall include representative Fr. IV-1 Paste samples for each manufactured lot shipped therein.  [*****] aliquots of not less than [*****] each of Fr. IV-1 Paste from each lot are to be collected and transferred to [*****] individual [*****] polypropylene test tubes.  The sample test tubes shall be marked with the lot number and shall be placed in Can A of each lot for each shipment.  Such samples shall be frozen at a temperature no warmer than -20° Celsius until shipment.

 

5.  Required Documentation - Original or scanned and e-mailed shipment documents are to be presented to Kamada at the time of shipment and are to include:

 

	
  

	
-

	
Commercial Invoice

 

	
  

	
-

	
Packing List

 

	
  

	
-

	
Shipper’s Letter of Instructions

 

	
  

	
-

	
Certificate of Analysis (template attached to this Exhibit A as Attachment 2)

 

	
  

	
-

	
Packing List stating lot number and kilogram weights for each lot; can weight per lot will be included on a separate document

 

	
  

	
-

	
Certificate of Origin

 

	
  

	
-

	
Airway bill of Bill of Lading (issued by Kamada’s freight forwarder)

 

A preliminary invoice should be sent to Kamada via e-mail approximately [*****] before a shipment and is to include the Fr. IV-1 paste lots numbers and weights that will be shipped under the final Commercial Invoice, as known at the time of issuance of the preliminary invoice. In case of changes with lots numbers or/and weights, a revised preliminary invoice should be sent to Kamada once the information is available.

 

In case there are any differences between the preliminary invoice and the commercial invoice, then such differences must be communicated by Baxter no later than the time of shipment.

 

	
 Attachment 1

	
“Product Specification for Fr. IV-1 Paste, Los Angeles”

	
 Attachment 2

	
Certificate of Analysis (template)

	
 Attachment 3

	
Labeling Guidelines

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Exhibit A to the Third Amendment of the Amended and Restated Fr. IV-1 Paste Supply Agreement

  

Page 4 of 10

  

 

Exhibit C to the Third Amendment

of Amended and Restated Fr. IV-1 Paste Supply Agreement

 

Prices and Payment Terms

 

	
1.

	
No Charge Paste.  Baxter shall provide to Kamada at no charge (other than shipping costs and applicable tax or other related charges) all quantities of Paste required in order to support Kamada's obligations under the TLA and the MSDA (taking into account also reasonable quantity of rejected in-process Paste and rejected Products) (“No Charge Paste”). The No Charge Paste supports Kamada’s obligations to further manufacture and supply the A1PI finished product to Baxter for Baxter’s distribution to its geographies.  All purchase orders of No Charge Paste submitted by Kamada to Baxter shall reference the appropriate product code number [*****].

[*****].

	
2.

	
Supplementary Paste.  In addition to the provision of the No Charge Paste described under Section 1 above, Baxter shall provide to Kamada Paste that will be used by Kamada for its own needs, not to be sold or transferred to re-sellers or brokers (“Supplementary Paste”), at the price stated in Section 2(b) below.  The Supplementary Paste supply shall be in accordance to the “Supplementary Forecast” as described in Section 2 of Exhibit D and shall be in accordance to the following terms:

 

(a) Order of Supplementary Paste by Kamada shall be made in accordance to Section 3 of Exhibit D.  All purchase orders of Supplementary Paste submitted by Kamada to Baxter shall reference the amount of Paste lots (purchase orders shall consist of multiples of [*****] kilograms) and shall reference the appropriate Baxter product code number [*****].  Baxter shall supply to Kamada up to a maximum quantity of [*****] kilograms of Supplementary Paste manufactured by the filter press process per each [*****] month calendar period. Long range supply meetings will be held on an annual basis and either Party shall contact the other Party at least [*****] days prior to the end of each calendar year to discuss the Supplementary Paste supply for the following calendar year(s). To the extent Kamada wishes to order, during any calendar year, Supplementary Paste at a quantity which exceeds [*****] kilograms of Supplementary Paste, it will provide Baxter a prior written notice in this respect in the annual long range supply meeting, in accordance with following table:

	
Paste Quantity (aggregate amount on an annual basis)

	
Forecast Notice

	
[*****]

	
[*****]*

	
[*****]

	
[*****]*

 

	
  

	
* Breakdown to be provided in the rolling forecast

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Exhibit C to the Third Amendment of Amended and Restated Fr. IV-1 Paste Supply Agreement

 

  

Page 5 of 10

  

(b) The price is to be determined by Baxter in its sole discretion (the "Supplementary Paste Price"); provided, however, that the price shall not exceed [*****] per kilogram for the Supplementary Paste processed by filter press [*****].  Kamada shall send purchase orders ninety days (90) days in advance for the Supplementary Paste in accordance to the instructions listed in Exhibit D supply via email to:

[*****]; and to,

[*****].

(c) Beginning [*****].  Both Parties agree that the commodity “Biological products for human use” under commodity code [*****] shall be used as the designated item for the percentage change as listed in the Producer Price Index.

 

	
3.

	
Purchase of Re-designated Paste Equivalent (to A1PI Finished Product).  Beginning [*****], Kamada shall have the option to purchase from Baxter re-designated paste equivalent (to A1PI finished product), which was originally received as No Charge Paste ("Re-designated Paste Equivalent") for its own needs, under the following conditions:

(a) Kamada shall provide a written request to Baxter of Kamada’s desire to purchase Re-designated Paste Equivalent from Baxter for its own needs.  Such written request shall be provided prior to Kamada’s labelling of the AIPI finished product, and the request shall include the corresponding Fr. IV-1 Paste lot #(s); the amount of requested Re-designated Paste Equivalent and the desired date of purchase.   Within [*****] calendar days of Baxter’s receipt of such request, Baxter shall notify Kamada of Baxter’s approval or non-approval of Kamada’s order request.  Such order request shall not be unreasonably withheld by Baxter.  In the event that Baxter accepts Kamada’s purchase request, Kamada shall issue Baxter a purchase order including the aforementioned details of the Re-designated Paste Equivalent and the appropriate Baxter Product Code [*****].  Kamada shall issue the purchase order via email for the purchase of the Re-designated Paste Equivalent to:

 

[*****]; and

[*****].

 

(b)  Kamada agrees to pay Baxter [*****] for such Re-designated Paste Equivalent [*****].  The [*****] price will be adhered to in accordance with Section 2(b).  [*****].

(c) [*****]. Kamada will report the corresponding Fr. IV-1 Paste lot #(s) and the amount of Re-designated Paste on a quarterly basis.  For such Re-designated Paste Equivalents, the purchase price designated in Section 3(b) above shall not apply, however, the purchase price shall be the Supplementary Paste price designated in Section 2(b) above.

	
4.

	
Supply Shortage. In the event Baxter materially fails to supply the No Charge Paste to Kamada as contemplated in this Agreement, Kamada reserves the right to:

manufacture the A1PI finished product for distribution in the Baxter Territory using alternative paste from an alternative raw material supplier or suppliers; provided that all regulatory requirements and Specifications for the A1PI finished product are met.   In such event, the transfer price charged to Baxter shall be adjusted to reflect the actual incremental costs (if any) incurred by Kamada for such alternative paste; provided, however, that in no event shall the transfer price exceed [*****] of the then­ prevailing Market Price for A1PI finished product.

	
5.

	
Delivery Terms.  Delivery of Paste - [*****] (INCOTERMS 2000).   Delivery charges are the responsibility of Kamada from [*****]. Loading and shipping of the Fraction IV-1 Paste shall be according to the previously validated procedure "Validation of Shipment of Paste Intermediates via Envirotainer [*****] container", Final Report [*****], or as otherwise agreed by the Parties in writing.  Paste shall be shipped to the address provided by Kamada as follows:

 

	
  

	
Inventory Planner

	
  

	
Karnada Ltd.

	
  

	
Kibutz Beit Kama

	
  

	
M.P. Negev 85325

	
  

	
Israel

	
  

	
Tel Direct:     972-8-9913103

	
  

	
Tel General:  972-8-9913111

 

Baxter shall label Paste per Attachment 3 of Exhibit A.

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Exhibit C to the Third Amendment of Amended and Restated Fr. IV-1 Paste Supply Agreement

 

  

Page 6 of 10

  

	
6.

	
PAYMENT TERMS:

 

(a)   Supplementary Paste purchases: Baxter shall invoice Kamada for each shipment of Supplementary Paste upon pickup of such Supplementary Paste shipment from Baxter's facility in Van Nuys.  Payment shall be due at Net [*****] days of the date of Baxter's invoice, subject to Section 2 of this Agreement and provided that upon rejection/supply shortage, as described in Section 4 hereof, such invoice shall be due Net [*****] days following receipt of the replacement Supplementary Paste.

All payments shall be made in US Dollars by way of wire transfer to such bank account that shall be designated from time to time by Baxter.  It is agreed that any delay in transfer of any payment hereunder because of telecommunication and other inter-banks issues shall not be considered default by Kamada.

Kamada to remit payment by wire transfer through the following instructions:

 

	
Bank:

	
[*****]

	
City, State:

	
[*****]

	
Country:

	
[*****]

	
Account No.:

	
[*****]

	
Tax ID No:

	
[*****]

	
ABA No.:

	
[*****]

	
Account Name:

	
[*****]

 

Kamada to reference the document #s when remitting payment to Baxter.  Kamada to provide remittance advice to: [*****]

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Exhibit C to the Third Amendment of Amended and Restated Fr. IV-1 Paste Supply Agreement

 

  

Page 7 of 10

  

 

 

	
Baxter to bill to:

	
Kamada Ltd.

	
cc.  Kamada Ltd.

	 	
Science Park

	
       Kibutz Beit Kama

	 	
P.O. Box 4081

	
       M.P. Negev 85325

	 	
Kiryat Weizmann

	
       Israel

	 	
Ness-Ziona 74140, Israel     

	       Attn: Planning
	 	
Attn:  Mr. David Tsur

	  

 

(b)     Re-designated Paste Equivalent Purchases:  Baxter shall invoice Kamada upon Baxter’s receipt of Kamada’s purchase order providing details of the Re-designated Paste Equivalent per Section 3(a), and the invoice shall reflect the price in accordance to Section 3(b) or 3(c) (if applicable) of this Exhibit.  The payment terms shall be immediately due and payable upon Kamada’s receipt of Baxter’s invoice and remittance shall be made as indicated on the invoice.  If payment is not received within [*****] calendar days of receipt of invoice, a late fee of [*****] shall be applied for every [*****] day delay at full payment of invoice.

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Exhibit C to the Third Amendment of Amended and Restated Fr. IV-1 Paste Supply Agreement

 

  

Page 8 of 10

  

 

Exhibit D to the Third Amendment of the

Amended and Restated Fr. IV-1 Paste Supply Agreement

 

Forecasting

 

	
  

	
1.

	
Paste Forecasting.  On a monthly basis, between the [*****] and the [*****] days of each calendar month, the Parties will hold a monthly conference call or meeting (the “Monthly Operations Meeting”) during which Baxter and Kamada will discuss, based on an agreed upon format, the status of the Paste supply plan and Products production plan and, reconcile any changes between this planning cycle and the previous one. Where mutual consent cannot reconcile any changes over the previous plan, the terms of the Exclusive Manufacturing, Supply and Distribution Agreement effective August 23, 2010 (“Distribution Agreement”) shall prevail.

 

   During the Monthly Operations Meeting:

 

	
  

	
a.

	
Baxter will provide Kamada an updated plan containing:

 

	
  

	
1.

	
A1PI Finished Products  requirements plan for the next rolling [*****] months;

 

	
  

	
2.

	
No Charge Paste delivery schedule (paste processed by Filter Press will  not be older than [*****] months from teardown to delivery date) for the next rolling [*****] months, specifying the teardown date and source (Source/Recovered) as planning allows;

 

	
  

	
3.

	
Actual performance of the Paste supply plan and any deviations from the plan during the previous [*****] months.

 

	
  

	
b.

	
Kamada will provide Baxter the following data based on historical performance or good faith non-binding estimate consistent with the data provided in Section a. above, as the case may be:

 

	
  

	
1.

	
Monthly yields per kg of input Paste for finished Products (with a one month time lag);

 

	
  

	
2.

	
Planned lead time from suspension of Paste until release of finished Products for each available pathway;

 

	
  

	
3.

	
Number of manufacturing batches planned for Products to be supplied to Baxter per month for the next rolling [*****] months and actual performance compared to planned for the previous month;

 

	
  

	
4.

	
Manufacturing plan for the consumption of Paste to be used for the production of Products to be supplied to Baxter for the next rolling [*****] months and actual consumption of Paste compared to planned consumption for the previous month;

 

	
  

	
5.

	
Products release planned schedule for all current Paste to be used for the manufacturing of Products to be delivered to Baxter, based on the terms of Section 4.2(b) of the Distribution Agreement and actual release of Products compared to planned release for the previous month (release planned schedule to cross-match Paste Lot to finished Products);

 

	
  

	
6.

	
Supplementary Paste requirements for Kamada territories including required source (Source/Recovered) for the next rolling [*****] months.

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Exhibit D to the Third Amendment of the Amended and Restated Fr. IV-1 Paste Supply Agreement

  

Page 9 of 10

  

 

Exhibit D to the Third Amendment of the

Amended and Restated Fr. IV-1 Paste Supply Agreement

 

Forecasting

 

2.   Paste Forecasting under Section 2 of Exhibit C (Supplementary Paste).   Concurrently with the Forecast, as specified in Section 1 above, Kamada shall provide Baxter in writing a good faith monthly forecast of Kamada's expected  requirements for delivery of Paste under Section 2 of Exhibit C (consistent with the Specifications (including then current packaging requirements)), for each month in the following [*****] month period ("Supplementary Forecast").   The first [*****] months included in each such Supplementary Forecast shall constitute a binding commitment on Kamada’s behalf to purchase the quantities of Paste set forth in such Supplementary Forecast.  Kamada shall not be obligated to purchase nor shall it have any liability in respect of the remaining [*****] months of any Supplementary Forecast.

 

3.   No Charge Paste and Supplementary Paste – Purchase Orders.   Without derogating from Kamada's obligations to purchase the quantities of Pastes set forth in the binding portion of the No Charge Forecastand the Supplementary Forecast, from time to time, Kamada shall deliver binding purchase orders in accordance with the Forecast or the Supplementary Forecast, as the case may be, for Paste by written or electronic purchase order (or by any other means agreed to by the Parties) to Baxter.  Baxter shall either: (i) acknowledge and accept or (ii) reject any Kamada purchase order in writing within [*****] days of receipt. All such purchase orders shall be irrevocable.  Purchase orders shall set forth the desired date of delivery with respect to the Paste ordered and shall be placed at least [*****] days prior to such desired date of delivery, unless otherwise agreed to by the Parties in writing.  All Paste ordered by Kamada under this Agreement shall be delivered on or before the delivery date set forth in the applicable purchase order, unless otherwise agreed to by the Parties in writing, provided that each shipment shall be pre-coordinated with the logistics and planning department of Kamada.

 

4.   Deemed Acceptance.   If (i) Baxter does not provide an acknowledgement to Kamada within [*****] days of its receipt of a purchase order and (ii) the aggregate quantities set forth in the purchase orders for delivery in the applicable month do not exceed the quantity set forth in the Supplementary Forecast (unless Baxter has otherwise affirmatively agreed in writing to meet the excess quantities ordered), Baxter shall be deemed to have accepted each purchase order from Kamada.

 

[*****] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

Exhibit D to the Third Amendment of the Amended and Restated Fr. IV-1 Paste Supply Agreement

 

Page 10 of 10

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