Document:

ex_108197.htm

 

 

AMENDMENT NO. 2 TO employmEnt Agreement 

 

 

Effective as of March 13, 2018, Steven G. Simonson, M.D. (“Executive”) and Windtree Therapeutics, Inc. (the “Company”) hereby agree to amend the Employment Agreement between them dated as of December 29, 2014 (the “Employment Agreement”) to reflect the revisions set forth herein (“Amendment”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Employment Agreement.

 

1.     Section 2 is hereby amended and restated in its entirety to read as follows:

 

“The term (“Term”) of this Agreement shall commence on the date first above written (the “Start Date”) and shall continue until terminated as provided in Section 7 hereof. Upon the occurrence of a Change of Control during the Term of this Agreement, including any amendments hereto, this Agreement shall automatically be extended until the end of the Effective Period. On the Date of Termination, Executive acknowledges that Executive shall immediately be deemed to have resigned all employment and related job duties and responsibilities with the Company, including, without limitation any and all positions on any committees or boards of the Company or any affiliated company. Executive agrees to sign all reasonable documentation evidencing the foregoing as may be presented to Executive for signature by the Company.” 

 

2.     The 18 month period of non-solicitation set forth in Section 4(c) is hereby revised to provide for a 12 month period of non-solicitation.

 

3.     Section 8(b) is hereby amended and restated in its entirety to read as follows:

 

“A termination of Employment of Executive will not be deemed to be for Good Reason unless Executive gives the Notice of Termination provided for herein within 30 days after Executive has actual knowledge of the act or omission of the Company constituting such Good Reason and Executive gives the Company a 30-day cure period to rectify or correct the condition or event that constitutes Good Reason and Executive delivers final Notice of Termination within 30 days of the date that Company’s failure to cure deadline has expired.”

 

4.     The second sentence of Section 10(a) is hereby amended and restated to read as follows: 

 

“Unless otherwise elected by the Executive to the extent permitted under Code Section 409A, the Company shall reduce or eliminate the Payments by first reducing or eliminating any cash severance benefits (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any accelerated vesting of stock options or similar awards, then by reducing or eliminating any accelerated vesting of restricted stock or similar awards, then by reducing or eliminating any other remaining Payments; provided, that no such reduction or elimination shall apply to any non-qualified deferred compensation amounts (within the meaning of Section 409A of the Code) to the extent such reduction or elimination would accelerate or defer the timing of such payment in manner that does not comply with Section 409A of the Code.”

 

5.     The first sentence of Section 15(d) is hereby amended and restated to read as follows:

 

“The arbitration shall be filed with the office of the American Arbitration Association (“AAA”) located in Philadelphia, Pennsylvania or such other AAA office as the parties may agree upon (without any obligation to so agree).” 

 

6.     Section 16(a) is hereby amended and restated in its entirety to read as follows: 

 

“Governing Law. This Agreement shall be interpreted, construed, governed and enforced according to the laws of the Commonwealth of Pennsylvania without regard to the application of choice of law rules.”

 

7.     In addition, the Employment Agreement is further amended to incorporate amendments previously made effective in the Share Purchase Agreement dated October 27, 2017 between the Company and LPH Investments Limited, which amendments are set forth in the exhibit attached hereto as Exhibit A.

 

Except as amended herein, the remaining terms and conditions of the Employment Agreement shall remain in full force and effect. This Amendment confirms an agreement between Executive and the Company with respect to the subject matter hereof and is a material part of the consideration stated in the Employment Agreement and mutual promises made in connection therewith.

 

The parties have executed this Amendment as of the day and date first set forth above.

 

 

Windtree Therapeutics, Inc.

 

 

 

By:       /s/ Kathryn A. Cole                                                                     /s/ Steven G. Simonson, M.D.                     

Name:  Kathryn A. Cole                                                                          Name: Steven G. Simonson, M.D.

Title:    SVP, Human Resources                                                              Title:    SVP and Chief Medical Officer

 

 

 

 

 

 

 

EXHIBIT A

 

 

	 	
			1.

				
			Solely with respect to the Change of Control (as defined in the applicable Executive's Employment Agreement) occurring as a result of the transactions contemplated by the Share Agreement, in lieu of the Annual Bonus (as defined in such Executive's Employment Agreement) that otherwise would be payable pursuant to Section 6(a) of such Employment Agreement, the executive shall be entitled to an award of equity granted on or before the Closing under the Company’s 2011 Long-term Incentive Plan (“2011 Incentive Plan”), as amended, having a value when issued equal to the combined total value of the 2017 and 2018 Target Bonus Amounts (as defined in such executive's Employment Agreement).

			

 

	 	
			2.

				
			Payment Terms:

			

 

	 	
			a.

				
			Form of equity: Paid in Restricted Stock Units (RSUs) (as defined or permitted under the 2011 Incentive Plan) equal to the combined total value of the 2017 and 2018 Annual Bonus provided under each applicable Employment Agreement for such Executive.

			

	 	
			b.

				
			Timing: RSUs shall be approved and granted on or before the Closing and will be issued within 10 days after authorization of additional shares available for issuance under the 2011 Long-term Incentive Plan and registration with the Securities and Exchange Commission.

			

	 	
			c.

				
			Vesting: 50% on March 15, 20181 and 50% on March 15, 2019 (each a “Vesting Date”), subject to continued full-time employment with the Company at the time of each Vesting Date.

			

 

The final grant document will include customary provisions related to delivery of shares, tax obligations, and any other pertinent details.

 

	 	
			3.

				
			With respect to Section 6, the parties hereto acknowledge and agree that the outstanding options of the Executive on the Closing Date under the 2011 Long-Term Incentive Plan for each Executive, shall remain outstanding and shall continue to vest in accordance with their respective terms.

			

 

	 	
			4.

				
			The Company and each Executive agree and acknowledge that there is and shall be no assumption by the Buyer nor its parent company, Lee’s Pharmaceutical Holdings Limited, a company incorporated in the Cayman Islands with limited liability, of (i) any vested or unvested shares of stock and any vested and unvested options to acquire the Company’s stock held by such Executive, or (ii) any Convertible and Derivative Equity Securities (as defined in the Share Purchase) as a result of the consummation of the transactions contemplated by the Securities Purchaser Agreement dated as of October 27, 2017 by and between the Company and the Buyer (the “SPA”). (Capitalized terms used in this paragraph 4 but not otherwise defined in this Amendment) shall have the meanings ascribed to such terms in the SPA.) 

			

 

	 	
			5.

				
			If during the Effective Period (as defined in the Employment Agreement, as amended by this Amendment) following the transaction contemplated by the SPA and for so long as the Buyer is the controlling stockholder of the Company, if the Buyer nominates candidates for election to replace a majority of the Board of Directors during any 12 consecutive month period, no benefits shall accrue or be payable to Executive on account of such a “Change of Control” as defined in the respective Employment Agreement, as amended by this Amendment.

			

 

1  In accordance with Amendment No. 1 to Restricted Stock Unit Award Agreement dated as of March 13, 2018 between the Company and Executive the March 15, 2018 Vesting Date has been revised to August 1, 2018.Exhibit 10.31

 

 

Equity Transfer Agreement

This equity transfer agreement (the "Agreement") was made and entered into on November 21, 2017 in Harbin City, Heilongjiang Province, the People's Republic of China by and between:

 

Transferor (1): Wang Yongqiang

 

ID No.: 23010219780502481X

 

Transferor (2): Liu Qiang

 

ID No.: 230102196212164110

 

(Transferor (1) and Transferor (2) shall hereinafter be individually referred to as each "Transferor" and collectively as "Transferors").

 

Transferee: Heilongjiang Xinda Enterprise Group Co., Ltd.

 

Registered Address: No. 9, Dalian North Road, Harping Road, Harbin Economic Development Zone, Heilongjiang Province

Legal Representative: Dai Rujun

WHEREAS:

 

1. Harbin Xinda Hi-Tech Co., Ltd. is a legally incorporated and existing limited liability company (with Wang Yongqiang as its legal representative, hereinafter referred to as "Hi-Tech Company");

 

2. Each Transferor is a registered shareholder of Hi-Tech Company, with Wang Yongqiang holding 91.25% and Liu Qiang holding 8.75% equity in Hi-Tech Company and all corresponding rights and interests (hereinafter referred to as "Transferred Equity");

 

3. Subject to the terms and conditions of the Agreement, each Transferor intends to transfer in whole the equity in Hi-Tech Company and all corresponding rights and interests held by it to Transferee.

 

NOW THEREFORE, upon friendly and equal negotiation, the parties reached the following agreement for mutual compliance.

Section 1 Sale and Purchase

 

1.1 According to the terms of the Agreement and subject to the conditions of the Agreement, each Transferor agrees to transfer Transferred Equity to Transferee;

 

1.2 After the completion of the equity transfer hereunder, each Transferor will no longer hold any equity in Hi-Tech Company, and Heilongjiang Xinda Enterprise Group Co., Ltd. will hold 100% equity in Hi-Tech Company.

 

1.3 Transferred Equity shall include all corresponding rights and interests, and shall be free and clear of any liens, pledges, other securities, options, claims and any other third-party rights of any nature whatsoever.

 

1.4 The parties agree that Transferee shall pay Transferors equity transfer price totaling Chinese Yuan ONE HUNDRED AND FIVE MILLION ONLY (RMB 105 million), and the parties acknowledge that the transfer price shall be the entire consideration to 

be received by each Transferor for the entire Transferred Equity and all corresponding rights and interests.

 

1.5 Within 30 days from the signing date of the Agreement, Transferee shall make the down payment of equity transfer price, Chinese Yuan SEVENTY-EIGHT MILLION ONLY (RMB 78 million), to the account of Hi-Tech Company;

 

1.6 Within 30 days after the completion of the industrial & commercial and related registration procedures in connection with the equity transfer, the down payment of equity transfer price, Chinese Yuan SEVENTY-EIGHT MILLION ONLY (RMB 78 million), shall be made to Transferors;

 

 

 

 

1.7 Within 30 days after the completion of the handover, inspection & acceptance of  financial affairs, assets, and all kinds of information, Transferee shall pay the remaining equity transfer price, Chinese Yuan TWENTY-SEVEN MILLION ONLY (RMB 27 million), to Transferors.

 

Section 2 Representations and Warranties

 

2.1 Transferors' Representations and Warranties to Transferee:

 

2.1.1 Transferors are the only legal owners of the subject matter of the contract and are entitled to exercise the full right to dispose of the subject matter of the contract.

 

2.1.2 At any time before the date of signing of the contract, Transferors has not sign any form of legal documents with any third party in connection with, or take any  disposal of the subject matter of the contract in any other way permitted by law, such disposal includes but is not limited to transfer, pledge, entrusted management, and assignment of all or part of the rights ancillary to the subject matter of the contract.

 

2.1.3 At any time after the date of signing of the contract, Transferors warrant that they will not sign any form of legal documents with any third party in connection with, or take any disposal of the subject matter of the contract in any other way permitted by law, such disposal includes but is not limited to transfer, pledge, entrusted management, and assignment of all or part of the rights ancillary to the subject matter of the contract.

 

2.1.4 At any time before and after the date of signing of the contract, Transferors warrant that the subject matter of the contract conforms and will conform with the transferrable conditions stipulated by law and is not or will not be subject to legal restrictions due to the reason of Transferors or any other third party, thereby affecting the normal progress of the legal procedures in connection with the equity transfer. Such non-transferrableness or restriction shall include but not be limited to a situation in which a court legally freeze or take other legal measures against the subject of this contract.

 

2.1.5 After the effectiveness of the contract, Transferors shall actively assist Transferee in going through all procedures in connection with the transfer of the subject matter of the contract, including but not limited to amending the company's articles of association, reorganizing the board of directors, and submitting relevant equity change documents to relevant authorities.

 

Transferors warrant that all the materials about Hi-Tech Company provided by them to Transferee, including but not limited to materials about financial conditions, production and operation, industrial & commercial registration, assets, project development, etc., are true and legal.

 

2.1.6 Transferors warrant, as of the official transfer of the entire Transferred Equity by Transferors to Transferee, that all the government licenses, approvals, and authorizations possessed by Hi-Tech Company necessary for its normal production and operation is and will remain in full force, and that nothing that might invalidate such government licenses, approvals, and authorizations has occurred or will occur.

 

2.2 Transferee's Representations and Warranties to Transferors:

 

2.2.1 Transferee meets and will remain meeting the statutory conditions for accepting the transfer of the subject matter of the contract as of the equity change registration, and the normal progress of the legal procedures in connection with the equity transfer will not be affected due to the disqualification of Transferee.

 

 

 

 

2.2.2 Transferee has sufficient financial capability to acquire the subject matter of the contract, and Transferee warrants that it is able to pay the transfer price as agreed in this contract.

Section 3 Parties' Respective Rights and Obligations

 

3.1 From the effective date of this contract, each Transferor will no longer own its equity in Hi-Tech Company held by it, and in respect of such equity, each Transferor will no longer enjoy any right or assume any obligation; Transferee will, according to the provisions of relevant laws and Hi-Tech Company's articles of association, enjoy rights and assume obligations in proportion to the equity transferred to it.

 

3.2 After the signing of this contract, Transferors shall, as required by Transferee, assist Transferee in registering the equity change with relevant authorities in a timely manner according to laws and regulations.

Section 4 Confidentiality

 

4.1 Transferors and Transferee shall keep confidential all information obtained by them in connection with this equity transfer contract, including but not limited to information about operation, assets, and financial conditions, trade secrets and know-hows, and others of Transferors, Transferee and Hi-Tech Company, and no party may make public or use such information.

 

4.2 In making public or publicizing this equity transfer, Transferors and Transferee shall use unified words determined upon consultation to ensure that the goodwill of no party will be harmed; without the consent of the other parties, no party may publish any speech or writing related to this equity transfer.

 

Section 5 Effective Date of Contract

 

5.1 This contract shall become effective upon satisfaction of all of the following conditions:

 

5.1.1 After the execution by all parties, this contract shall form as of the date first written above.

Section 6 Force Majeure

 

6.1 "Force Majeure" in this contract shall refer to any event that is unforeseeable, unavoidable and insurmountable and whose impact cannot be eliminated through reasonable efforts and expenses, including but not limited to earthquakes, typhoons, floods, fires, wars, or other events recognized in international business practices.

 

6.2 If a party hereto is unable to perform in whole or in part its obligations hereunder due to Force Majeure, such party may suspend the performance of such obligations as long as the Force Majeure event lasts. After the elimination of the impact of the Force Majeure event, if requested by the other party, the affected party shall continue to perform its unperformed obligations. Nevertheless, a party that suffers from Force Majeure and therefore proposes to suspend the performance of its obligations must, within 15 days after becoming aware of the Force Majeure event, notify the other party in writing, describing the nature, location, scope, possible duration of the Force Majeure, and the impact of the Force Majeure on its performance of its contractual obligations; the party giving such notice must use its best endeavors to mitigate the impact of Force Majeure event and possible losses arising therefrom.

 

6.3 If the parties dispute over the occurrence of a Force Majeure event or the impact of a Force Majeure event on the performance of the contract, the party requesting suspension of the performance of its contractual obligations shall bear the burden of proof.

 

6.4 If a party fails to perform the contract due to Force Majeure, it shall be exempted from liabilities for such failure in part or in whole based on the impact of Force Majeure. Nevertheless, if the Force Majeure occurs after the party's delay of performance, it shall not be exempted from liabilities.

 

 

 

Section 7 Liabilities for Breach

 

7.1 Any party breaching its representations and warranties herein and obligations hereunder shall bear liabilities for such breach, and shall compensate for all economic losses suffered by the other party due to such breach (if any), including, but not limited to all appraisal fees, litigation costs, and attorneys fees paid by the other party therefor.

Section 8 Miscellaneous

 

8.1 Modification to Contract

 

Any modification to this contract must be made in writing and signed by all parties. The modified part and the added content shall constitute an integral part of this contract.

 

8.2 Severability

 

If any provisions of this contract are found to be invalid by a court or arbitration institution with jurisdiction, the validity of other provisions shall not be affected, and other provisions shall remain valid.

 

8.3 Entire Agreement

 

This contract shall constitute all representations and agreements between the parties and supersede all oral or written representations, warranties, understandings and agreements made by the parties in relation to the subject matter of this contract before the signing date of this contract. All parties agree and acknowledge that no representation or covenant not expressly set out in this contract shall constitute a part of this contract and therefore serve as the basis for determining the parties' respective rights and obligations or interpreting the terms and conditions of this contract.

 

8.4 Notice

 

Notices hereunder shall be made in writing and delivered by mail, fax or other electronic means of communication. Such notices shall be deemed to be served upon when arriving at the address of the recipient. If such notices are sent by mail, the date of service shall be the date of receipt indicated on the return receipt; and if such notices are sent by fax, such notices shall be deemed to be served upon after the receipt of the confirmation message from the fax machine.

 

8.5 Dispute Resolution

 

The parties shall first resolve through negotiation any dispute arising from or related to this contract. If such negotiation fails, the parties agree to submit such dispute to an arbitration institution with jurisdiction.

Signed by Transferor (1):

 

Signed by Transferor (2):

 

Sealed by Heilongjiang Xinda Enterprise Group Co., Ltd.

 

Signed by its Legal Representative (Authorized Representative):

 

At Pingfang District, Harbin City, Heilongjiang Province

On November 21, 2017

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00281-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00281-of-00352.parquet"}]]