Document:

Exhibit 10.14

 

	

    	
Sterile Ophthalmics and Injectables
    

 

 

1925 West Field Court, Suite 300 · Lake Forest, Illinois 60045 · PHONE (800) 932-5676 · FAX (800) 943-3694 · www.akorn.com

 

March 5, 2015 

 

Jonathan Kafer

 

Dear Jon,

 

On behalf of Akorn Pharmaceuticals, I am pleased to extend to you an offer for employment in the position of Executive Vice President, Sales & Marketing based at our Corporate Headquarters in Lake Forest, Illinois.  Your base salary would be three hundred thousand dollars  and zero cents ($300,000.00) annually and you would report directly to Bruce Kutinsky, Chief Operating Officer.

 

You would be able to participate in Akorn’s Performance Incentive Plan. As Executive Vice President, your base annual bonus potential would be forty percent (40%) of base salary subject to plan details and annual Board of Directors approval of payout. In addition, you will have the opportunity to exceed your base annual bonus through the “overachievement”

 

Targets (See Schedule A). You would be eligible to begin participation in plan year 20 15.

 

Any payout for 2015 performance would be prorated based on length of service.

 

The Company, subject to approval by our Board of Directors, would make a stock option grant under our Stock Option Plan, which would give you the option to purchase one hundred twenty five thousand (125,000) shares of Akorn, Inc. common stock. You would also be eligible to participate in the Long Term Incentive Compensation Plan reserved for key executives and senior level management which would afford you additional stock option grants and restricted awards on an annual basis. The total award value is equal to one hundred percent (100%) of your annual salary of which seventy-five percent (75%) is paid out as stock options and the remainder twenty-five percent (25%) in the form of restricted shares. Any long-term incentive awards for which you would be eligible would be determined by the Compensation Committee of the Board of Directors.

 

Additionally, you would be eligible for benefits which include medical, dental, prescription drug, vision, Smart-Choice , Akorn’s (401K) Retirement Savings Program, Education Assistance, our Employee Stock Purchase Program, flexible spending accounts, an Employee Assistance Program, life, disability insurance and three (3) weeks of Paid Time Off (PTO).

 

As a convenience, we would automatically enroll you in Smart Choice! Akorn’s 40l(k) Retirement Savings Plan. We would defer two percent (2%) of your pre-tax pay, effective the first payroll following eligibility;   eligibility is defined as the first of the month following your date of hire. Your savings would be invested in the Fidelity Freedom Funds. You may change or discontinue your deferment at any time and you may move your savings to different funds once you have begun employment.

 

1

 

Your employment at Akorn would be “at-will”, which means that either you or the Company may terminate employment at any time. Nothing in this letter should be interpreted as a contract of employment.

 

You should be aware that Akorn has implemented a Smoke Free Campus policy which specifies that employees may not smoke within twenty (20) feet of the common property line at any of our facilities or in a personal vehicle when fellow employees, customers or vendors are in the car.

 

This offer is contingent upon successful completion of a drug-screening test, as well as completion of our standard pre-employment background check. In addition, you would be required to sign our Employee Confidential Information Agreement, Code of Ethics, and our Asset Repayment Agreement as conditions of employment.

 

Jon, we are very pleased at the prospect of you joining us, and look forward to working closely with you. We will also assist you with relocation through our relocation assistance program.    Should you have any questions about this offer or any matter related to your employment at Akorn, please do not hesitate to contact me.

 

Respectfully,

 

	
/s/ Bruce Kutinsky
    	
 
    
	
 
    	
 
    
	
Bruce Kutinsky
    	
 
    
	
Chief Operating Officer
    	
 
    
	
Akorn, Inc.
    	
 
    

 

I accept this offer of employment and understand the terms and conditions outlined above.

 

	
/s/ Jon Kafer
    	
 
    	
 
    
	
Jonathan Kafer
    	
 
    	
Date
    

 

2Exhibit 10.15

 

March 26, 2015

 

Randall Pollard

 

Dear Randall,

 

On behalf of Akorn Pharmaceuticals, I am pleased to extend to you an offer for employment in the position of Vice President, Corporate Controller based at our Corporate Headquarters in Lake Forest, Illinois.  Your base salary would be two hundred thirty-five thousand dollars and zero cents ($235,000.00) annually and you would report directly to me, Tim Dick, Chief Financial Officer.

 

In addition, you would receive a one-time, lump sum payment in the amount of fifty thousand dollars and zero cents ($50,000.00) within thirty (30) days following your date of hire.  Should you voluntary leave Akorn within one year after you begin employment, you agree to return the full bonus amount, including taxes and other deductions

 

You would be able to participate in Akorn’s Performance Incentive Plan.  As Vice President, your annual bonus potential would be thirty percent (30%) of base salary subject to plan details and annual Board of Directors approval of payout.  You would be eligible to begin participation in plan year 2015 and would be entitled to the full potential which is based on both individual and company performance without a proration for time served in 2015.

 

The Company, subject to approval by our Board of Directors, would issue a stock option grant under the Akorn Stock Option Plan, which would give you the option to purchase fifty thousand (50,000) shares of Akorn common stock.  You would also be eligible to participate in the Long Term Incentive Compensation (LTIC) Plan reserved for key executives and senior level management which would afford you additional stock option grants and restricted awards on an annual basis.  The total award value is equal to 50% of your annual salary of which, 75% is paid out as stock options and the remainder 25% in the form of restricted shares. Any long-term incentive awards for which you would be eligible would be determined by the Compensation Committee of the Board of Directors.

 

Additionally, you would be eligible for benefits which include medical, dental, prescription drug, vision, Smart-Choice, Akorn’s (401K) Retirement Savings Program, Education Assistance, our Employee Stock Purchase Program, flexible spending accounts, an Employee Assistance Program, life,  disability insurance and three (3) weeks of Paid Time Off (PTO).

 

As a convenience, we would automatically enroll you in Smart Choice! Akorn’s 401(k) Retirement Savings Plan.  We would defer four percent (4%) of your pre-tax pay, effective

 

 

the first payroll following eligibility; eligibility is defined as the first of the month following your date of hire.  Your savings would be invested in the Fidelity Freedom Funds.  You may change or discontinue your deferment at any time and you may move your savings to different funds once you have begun employment.

 

Akorn would provide you with relocation benefits to move your family and your household goods from Texas to Illinois.  The relocation benefits would be in accordance with the terms and conditions of our Relocation Policy, a copy of which I have enclosed.  Should you voluntarily leave the company within eighteen (18) months following your relocation, you agree to return a pro-rated amount of all expenditures paid to you and to vendors on your behalf.  Pro-rations shall be calculated using calendar days.

 

Akorn would also pay for the airline travel costs associated with your travel to Texas from Chicago on a weekly basis until your family relocates to the Chicago area which is expected to occur in the summer of 2015.

 

Your employment at Akorn would be “at-will”, which means that either you or the Company may terminate employment at any time. Nothing in this letter should be interpreted as a contract of employment.

 

You should be aware that Akorn has implemented a Smoke Free Campus policy which specifies that employees may not smoke within twenty (20) feet of the common property line at any of our facilities or in a personal vehicle when fellow employees, customers or vendors are in the car.

 

This offer is contingent upon successful completion of a drug-screening test, as well as completion of our standard pre-employment background check. In addition, you would be required to sign our Employee Confidential Information Agreement,  Code of Ethics and our Asset Repayment Agreement as conditions of employment, all of which I have enclosed.

 

Randall, we are very pleased at the prospect of your joining us, and look forward to working closely with you. Should you have any questions about this offer or any matter related to your employment at Akorn, please do not hesitate to contact me.

 

Should you agree to the terms set forth in this offer, I request that you sign and date below, in acknowledgment of the contents of this letter, and return it to my attention, along with executed copies of the three (3) agreements.  Copies are enclosed for your records.

 

Respectfully,

 

	
/s/   Tim Dick
    	
 
    	
/s/   Renee Wolf
    	
 
    
	
 
    	
 
    
	
Tim   Dick
    	
 
    
	
Chief   Financial Officer
    	
 
    
	
 
    	
 
    
	
Cc:
    	
Renee   Wolf, Vice President, Human Resources
    	
 
    
	
 
    	
Payroll   Team
    	
 
    
					

 

 

I accept this offer of employment and understand the terms and conditions outlined above.

 

	
/s/   Randall Pollard
    	
 
    	
5/13/15
    
	
Randall   Pollard
    	
 
    	
DateExhibit 10.16

 

August 25, 2015

 

Randall Pollard

 

Dear Randall,

 

We are pleased to offer you the positions of Chief Accounting Officer and Interim Chief Financial Officer based at our corporate headquarters in Lake Forest, IL. The effective date of your promotion would be August 4, 2015.

 

As CAO and Interim CFO, you will report to Chief Executive Officer Raj Rai.

 

Your compensation and benefits would remain unchanged.  Your employment at Akorn would continue to be “at-will”, which means that either you or the Company may terminate employment at any time.

 

In consideration for your accepting the positions CAO and Interim CFO, Akorn does commit to the following severance: in the event of termination of your employment prior to August 3, 2016 without cause or due to change in control (that occurs within 60 days of August 3, 2016), you will be entitled to twelve (12) month’s severance at the base salary in effect at the time of your termination.  For purposes of this offer,  “without cause” means that the reason for termination is due to reasons other than significantly inadequate or deficient performance on your part, misuse or misappropriation of company assets, material violation of company policy or violation of legal statute relevant to your role and responsibilities of Akorn, or conduct detrimental to the company.  Eligibility for this severance benefit will be dependent upon execution of a Termination and Severance Agreement at the time of termination of employment.

 

The management team wishes you the best of luck in your new assignment.  Should you have any questions about this offer, please do not hesitate to contact me.

 

Indicate your acceptance of this opportunity and your understanding of the provisions outlined above by signing below and return to me.

 

Respectfully,

 

	
/s/ Raj Rai
    	
 
    
	
 
    	
 
    
	
Raj Rai
    	
 
    
	
Chief Executive Officer
    	
 
    

 

 

cc: Renee Wolf/Vice President, Human Resources

 

 

I accept this offer of employment and understand the terms and conditions outlined above.

 

	
/s/ Randall Pollard
    	
 
    	
 
    
	
Randall Pollard
    	
 
    	
Date

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