SEC Contract Filing

Filing Date: 2016-08-08

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>a2016q2exhibit103.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<div><a name="s7200055C6F860389E5C151179D6BA05E"></a></div><div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Exhibit 10.3</font></div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">EXECUTION VERSION</font></div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div></div><div><br></div><div style="line-height:137%;padding-top:18px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">AMENDMENT NO. 1 TO RIAA</font></div><div style="line-height:120%;padding-top:16px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This AMENDMENT NO. 1 TO RIAA (this </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">&#8220;Amendment&#8221;)</font><font style="font-family:inherit;font-size:12pt;">&#32;is made and entered into as of May 9, 2016 by and between ARIAD Pharmaceuticals, Inc., a Delaware corporation </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">(&#8220;ARIAD&#8221;</font><font style="font-family:inherit;font-size:12pt;">&#32;or the </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">&#8220;Company&#8221;),</font><font style="font-family:inherit;font-size:12pt;">&#32;and PDL BioPharma, Inc., a Delaware corporation </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">(&#8220;Purchaser&#8221;),</font><font style="font-family:inherit;font-size:12pt;">&#32;each party to that certain Revenue Interest Assignment Agreement, dated as of July 28, 2015 (as amended, restated, amended and restated, modified and/or supplemented from time to time, the &#8220;RIAA&#8221;). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the RIAA.</font></div><div style="line-height:120%;padding-top:18px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">WHEREAS, the Company and Purchaser are contemporaneously entering into that certain Waiver and Consent to Revenue Interest Assignment Agreement and Security Agreement of even date (the </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">&#8220;Waiver and Consent&#8221;),</font><font style="font-family:inherit;font-size:12pt;">&#32;pursuant to which Purchaser is waiving certain rights it may have under the RIAA in connection with a proposed sale by the Company of an indirect wholly-owned subsidiary of the Company.</font></div><div style="line-height:120%;padding-top:16px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">NOW, THEREFORE, in consideration of the mutual covenants, agreements and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:</font></div><div style="line-height:120%;padding-top:16px;text-align:left;padding-left:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">1.&#160;&#160;&#160;&#160;The following definitions in </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">Section 1.1</font><font style="font-family:inherit;font-size:12pt;">&#32;of the RIAA are hereby deleted in their entirety</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">and the following shall be inserted in lieu thereof:</font></div><div style="line-height:120%;padding-top:16px;text-align:left;padding-left:77px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">&#8220;European Subsidiaries&#8221;</font><font style="font-family:inherit;font-size:12pt;">&#32;shall mean ARIAD Pharma S.A. (Greece).</font></div><div style="line-height:120%;padding-top:16px;text-align:justify;padding-left:77px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">&#8220;Gross Product Revenues&#8221;</font><font style="font-family:inherit;font-size:12pt;">&#32;means, for any period of determination during the Revenue Interest Period, the amount equal to the sum of the following for such period: (a) the amounts invoiced and recognized as revenue in accordance with GAAP by the Company, its Affiliates or a US/EU End Licensee with respect to the sale by the Company, its Affiliates or such US/EU End Licensee, respectively, of Product to a Third Party (including distributors) other than a US/EU End Licensee, (b) to the extent not covered by (a) above, any amounts invoiced and recognized as revenue in accordance with GAAP by the Company or its Affiliates from a Third Party (other than a US/EU End Licensee or a licensee or sublicensee through which such US/EU End Licensee derives its license rights) solely with respect to the manufacture, use, sale, distribution or other commercialization of the Product by such Third Party (including any royalties received by the Company, but excluding (i) [***], (ii) [***], or (iii) [***], and (c) any collections in respect of write-offs or allowances for bad debts in respect of items described in the preceding clauses (a) and (b); </font><font style="font-family:inherit;font-size:12pt;text-decoration:underline;">provided, however,</font><font styl