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Exhibit 10.45
AMENDMENT NO. 13
TO THE SHAREHOLDERS’
AGREEMENT OF KIRIN-AMGEN, INC.
This AMENDMENT NO. 13 TO THE
SHAREHOLDERS’ AGREEMENT OF KIRIN-AMGEN, INC., dated as of
June 28, 2007 (this “ Amendment Agreement
”), which shall become effective at 12:01 A.M., Japan
Standard Time, on July 1, 2007, is made and entered into by
and among Kirin Brewery Company, Limited, a Japanese corporation to
be renamed Kirin Holdings Company, Limited on July 1, 2007
(“ Kirin Holdings ”), Kirin Pharma Company,
Limited, a Japanese corporation (including any successors by way of
merger, consolidation, Share Exchange or similar transaction,
“ Kirin Pharma ”), Amgen Inc., a Delaware
corporation (“ Amgen ”), and Kirin-Amgen, Inc.,
a Delaware corporation (“ Kirin-Amgen ”). All
capitalized terms used in this Amendment Agreement and not
otherwise defined herein shall have the meanings assigned to such
terms in the Shareholders’ Agreement (defined below), as
amended hereby.
RECITALS
A. Kirin Holdings, Amgen and
Kirin-Amgen are parties to that certain Shareholders’
Agreement of Kirin-Amgen, Inc., dated May 11, 1984 (as
amended, the “ Shareholders’ Agreement ”),
and Kirin Holdings and either or both of Amgen and Kirin-Amgen, as
the case may be, are parties to certain other agreements listed in
Appendix A to this Amendment Agreement (such other agreements
collectively, the “ Kirin/Amgen Agreements
”);
B. Kirin Pharma is a direct,
wholly owned subsidiary of Kirin Holdings;
C. The stockholders of Kirin
Holdings have approved the effectuation by Kirin Holdings of a
reorganization pursuant to which, among other things, it will
assign, convey and transfer to Kirin Pharma all or substantially
all of the assets and liabilities relating to Kirin Holdings’
pharmaceuticals business, including all of the shares of capital
stock of Kirin-Amgen held by Kirin Holdings (the “
Shares ”) and the rights and obligations of Kirin
Holdings under the Shareholders’ Agreement as amended hereby
and each Kirin/Amgen Agreement, in each case by means of a
“Kaisha-Bunkatsu” effected in accordance with the
Corporate Split Agreement listed on Appendix D attached hereto and
pursuant to Section 757 of the Japanese Corporation Code (the
“ Reorganization ”);
D. Following the
Reorganization, Kirin Pharma will continue to be a direct, wholly
owned subsidiary of Kirin Holdings;
E. The Shareholders’
Agreement and the Kirin/Amgen Agreements contain certain
restrictions on Kirin Holdings’ ability to assign to third
parties its rights and obligations under the Kirin/Amgen
Agreements;
F. Kirin Holdings has
requested that Amgen consent to the assignment by Kirin Holdings to
Kirin Pharma of all of the rights and obligations of Kirin Holdings
under each Kirin/Amgen Agreement;
NOW, THEREFORE, in order to
facilitate the Reorganization and at the same time protect their
respective investments in Kirin-Amgen, the parties have agreed as
follows:
| 1. |
CONSENT AND WAIVER; AMENDMENT OF CERTIFICATE OF
INCORPORATION; CERTIFICATES OF CORPORATE REGISTRIES; EXCLUSION FROM
THE SCOPE OF THE REORGANIZATION |
1.01 Amgen Consent and
Waiver
Subject to the terms and
conditions of this Amendment Agreement, Amgen and Kirin-Amgen each
hereby consent to the assignment by Kirin Holdings to Kirin Pharma,
pursuant to the Reorganization and in the manner described in the
Reorganization Package, of all of the rights and obligations of
Kirin Holdings under each Kirin/Amgen Agreement.
1.02 Amendment of
Certificate of Incorporation
The parties to this Amendment
Agreement hereby agree that, in order to give full effect to
Paragraph 17.03 of the Shareholders’ Agreement, as described
in Section 2.09 below, the certificate of incorporation of
Kirin-Amgen shall be amended and restated as of the date of this
Amendment Agreement to conform to Appendix B attached to this
Amendment Agreement. Each Party to this Amendment Agreement shall
take all actions and execute and deliver all documents and
instruments (including written consents of Kirin Holdings and Amgen
in their respective capacities as stockholders of Kirin-Amgen), and
shall cause the members of the board of directors of Kirin-Amgen to
adopt all resolutions, take alnl actions and execute and deliver
all documents and instruments, reasonably necessary to give full
effect to the provisions of this Section 1.02.
1.03 Exclusion from the
Scope of the Reorganization
In accordance with the last
sentence of Article 4(2) of the Corporate Split Agreement listed on
Appendix D attached hereto, Kirin Holdings and Kirin Pharma have
discussed the exclusion of the Shares and the rights and
obligations of Kirin Holdings under the Shareholders’
Agreement as amended hereby from the scope of the Reorganization
and hereby agree that, notwithstanding anything to the contrary
contained in the Corporate Split Agreement, the Shares and the
rights and obligations of Kirin Holdings under the
Shareholders’ Agreement as amended hereby shall be excluded
from the scope of the rights and obligations being transferred from
Kirin Holdings to Kirin Pharma as part of the corporate split
contemplated in the Corporate Split Agreement. Notwithstanding
anything to the contrary contained herein, the provision in this
paragraph shall be governed by and construed in accordance with the
internal laws, and not the law of conflicts, of Japan applicable to
agreements made and to be performed in Japan.
Kirin Holdings and Kirin
Pharma, jointly and severally, represent and warrant to Amgen as of
the date hereof that (a) the agreement of Kirin Holdings and
Kirin Pharma in the immediately preceding paragraph constitutes a
valid and legally binding agreement of each of Kirin Holdings and
Kirin Pharma enforceable against it in accordance with its terms,
(b) the agreement of Kirin Holdings and Kirin Pharma in the
immediately preceding paragraph overrides anything to the contrary
contained herein or in the Reorganization Package
(including
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the Corporate Split
Agreement) and (c) by virtue of the agreement of Kirin
Holdings and Kirin Pharma in the immediately preceding paragraph,
the Shares and the rights and obligations of Kirin Holdings under
the Shareholders’ Agreement as amended hereby will be
retained by Kirin Holdings, and will not be transferred to Kirin
Pharma, in the Reorganization, notwithstanding anything to the
contrary contained herein or in the Reorganization Package
(including the Corporate Split Agreement).
1.04 Certificates of
Corporate Registries
Each of Kirin Holdings and
Kirin Pharma shall deliver to counsel to Amgen at its office in
Tokyo true and complete certificates of their respective corporate
registries, issued by a competent registrar office of the Ministry
of Justice in Japan and describing the effectuation of the
“Kaisha Bunkatsu” in accordance with the Corporate
Split Agreement listed on Appendix D hereto and pursuant to
Section 757 of the Japanese Corporation Code, in each case
promptly after the same becomes available (and, in any event,
within two business days thereof).
| 2. |
AMENDMENTS TO THE SHAREHOLDERS’
AGREEMENT |
Effective as of the date of
this Amendment Agreement, the Shareholders’ Agreement is
hereby amended as follows:
2.01
Preamble
The Preamble of the
Shareholders’ Agreement is amended by (i) replacing the
comma after the word “corporation” in the sixth line
with the phrase “to be renamed Kirin Holdings Company
and”, (ii) replacing the phrase “1900 Oak Terrace
Lane” with the phrase “One Amgen Center Drive”,
and (iii) replacing the phrase “(“ Kirin
”),” with the phrase “(“Kirin” or
“Kirin Holdings”), Kirin Pharma Company, Limited, a
Japanese corporation having its principal office at 26-1, Jingumae
6-chome, Shibuya-ku, Tokyo, Japan 150-8011 (including any
successors by way of merger, consolidation, Share Exchange or
similar transaction, “ Kirin Pharma
”),”.
2.02 Certain
Definitions
Paragraph 1 of the
Shareholders’ Agreement is amended by inserting (i) in
Paragraph 1.10, after the word “Kirin,” in the first
and third lines, the phrase “Kirin Pharma,”,
(ii) in Paragraph 1.09, in the place of the word
“Kirin”, the phrase “Kirin Pharma” and
(iii) after Paragraph 1.10, new Paragraphs 1.11 through 1.33
as follows:
1.11 Administrative
Matters
The term Administrative
Matters shall mean any matter relating to the handling and
resolution of intellectual property matters, legal matters and
payment of expenses.
1.12
Affiliate
The term Affiliate shall
mean, with respect to any Person, any Person directly or indirectly
Controlling, Controlled by, or under common Control with, such
other Person as of the
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date on which, or at any time
during the period for which, the determination of affiliation is
being made.
1.13 Asian
Country
The term Asian Country shall
mean any of the jurisdictions specified in Appendix C attached to
this Amendment Agreement, and the term Asian Countries shall mean
all such jurisdictions collectively.
1.14 Asian Pharma
Entity
The term Asian Pharma Entity
shall mean any corporation that (i) is incorporated or
otherwise organized under the laws of, and has its principal
executive offices in, any Asian Country; (ii) derives at least
80% of its consolidated revenues from the development, manufacture,
processing, distribution or sale of pharmaceutical or biotechnology
products in Asian Countries; and (iii) is not Controlled,
directly or indirectly, by a Non-Asian Pharma Entity.
1.15 Average Two-Year
Trailing Revenues
The term Average Two-Year
Trailing Revenues with respect to any particular fiscal year shall
mean the average of the total revenues and other income of
Corporation, as set forth in the audited annual financial
statements of Corporation, for the two immediately preceding fiscal
years.
1.16 Beneficial
Owner
The term Beneficial Owner
shall mean, with respect to any Equity Securities, any Person who,
directly or indirectly, through any contract, arrangement,
understanding, relationship, or otherwise has or shares
(i) voting power, which includes the power to vote, or to
direct the voting of, such Equity Security; and/or
(ii) investment power, which includes the power to dispose, or
to direct the disposition of, such Equity Securities. The terms
Beneficially Owned and Beneficial Ownership shall have
corresponding meanings. In any dispute between Amgen and Kirin
concerning whether or not a Person who is not a record holder of
Equity Securities is nonetheless a Beneficial Owner of such Equity
Securities, Amgen shall have the burden of proving that such Person
is a Beneficial Owner.
1.17 Consumer Price
Index
The term Consumer Price Index
shall mean the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the U.S. Department
of Commerce, Los Angeles All Items (1982-1984=100), or any
successor index thereto, appropriately adjusted. If the Consumer
Price Index is converted to a different standard reference base or
otherwise revised, then, whenever the determination of a Consumer
Price Index figure is called for herein, the Consumer Price Index
shall be converted in accordance with the conversion factors
published by the U.S. Department of Commerce, Bureau of Labor
Statistics, or, if such Bureau does not publish such conversion
factors, the conversion factors published by any other nationally
recognized publisher of similar statistical information determined
by Amgen.
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1.18
Control
The term Control, as used
with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the
management policies of such Person, whether through the ownership
of voting securities or by contract or otherwise. The phrases
Controlled by and under common Control with shall have
corresponding meanings.
1.19 Control
Event
The term Control Event shall
mean any of the following: (i) the first date on which the
shares of common stock of Kirin Pharma held of record by Kirin
Holdings of which Kirin Holdings is a Beneficial Owner cease to
constitute at least 2/3 (two thirds) of the total number of shares
of common stock of Kirin Pharma on a fully diluted basis or cease
to represent at least 2/3 (two thirds) of the votes entitled to be
cast on any matter by holders of Equity Securities of Kirin Pharma;
provided that, in the event but only in the event that Kirin Pharma
consummates a Qualified Public Merger or Qualified Public Offering,
as of and from the time of such consummation this clause
(i) shall automatically be amended to replace each of the two
instances of the phrase “2/3 (two thirds)” above (but
not the instance of that phrase below) with the phrase “a
majority”; provided, further, that, if Kirin Holdings
acquires a majority of the outstanding Equity Securities of a
corporation (a majority of the Equity Securities of which
corporation are listed for trading on a recognized national or
international securities exchange) (“ Target ”)
and concurrently therewith or thereafter contributes all of the
outstanding common stock of Kirin Pharma to the Target with the
result that all of the outstanding common stock of Kirin Pharma is
owned by Target (such a transaction, a “ Transitional
Transaction ”), then the fact that Kirin Holdings owns of
record less than 2/3 of the outstanding common stock of Kirin
Pharma shall not constitute a Control Event if (x) the Target
holds of record all of the outstanding shares of common stock of
Kirin Pharma, (y) Kirin Holdings holds of record a majority of
the outstanding Equity Securities of Target, and (z) within
365 days following Kirin Holdings’ contribution to Target of
shares of common stock of Kirin Pharma, Kirin Pharma is merged into
Target in a transaction constituting a Qualified Public Merger,
(ii) the first date on which Kirin Holdings ceases to have the
ability to elect at least a majority of the members of the board of
directors of Kirin Pharma; provided that, in the event that Kirin
Holdings, Kirin Pharma and a Target enter into a Transitional
Transaction, the fact that Kirin Holdings ceases to have the direct
ability to elect at least a majority of the members of the board of
directors of Kirin Pharma shall not constitute a Control Event if
(x) the Target has the ability to elect all of the directors
of Kirin Pharma, (y) Kirin Holdings has the ability to elect a
majority of the directors of Target, and (z) within 365 days
following Kirin Holdings’ contribution to Target of shares of
common stock of Kirin Pharma, Kirin Pharma is merged into Target in
a transaction constituting a Qualified Public Merger,
(iii) the consummation of any Restricted Transaction or, if
earlier, the public announcement, execution or delivery of any
agreement, plan or proposal contemplating any Restricted
Transaction, in any such case without the prior written consent of
Amgen, or (iv) to the extent that Kirin Holdings or Kirin
Pharma consummates a transaction or series of transactions that,
but for the fact that it was entered into with a Qualified Third
Party or Non-Pharma Entity, would have constituted a Restricted
Transaction, the first date on which such Qualified Third Party
ceases to be an Asian Pharma Entity or such Non-Pharma Entity
ceases to be a Non-Pharma Entity.
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1.20 CPI
Adjustment
The term CPI Adjustment shall
mean an adjustment of the FTE Rate, which shall be made by first
multiplying such FTE Rate by the Consumer Price Index in effect as
of the effective date of such adjustment and then dividing the
resulting product by the Consumer Price Index in effect as of the
later of the date of this Amendment Agreement and the date as of
which the FTE Rate was last adjusted.
1.21 Equity
Securities
The term Equity Securities
shall mean, with respect to any Person other than a natural person,
any shares of capital stock or other ownership interests of such
Person and the securities convertible into or exchangeable or
exercisable for or into any such shares or ownership
interests.
1.22 FTE
Rate
The term FTE Rate shall mean
the rate used by the Parties to reimburse Kirin Pharma and Amgen
for personnel-related expenses incurred by them in connection with
their respective research and development activities.
1.23 Group
The term Group means any
group of Persons acting in concert with respect to the acquisition,
ownership or disposition of Equity Securities.
1.24 Kirin-Amgen
Matter
The term Kirin-Amgen Matter
shall mean, collectively, any Administrative Matter, any matter
relating to Corporation under consideration by the primary business
representatives of Amgen, on the one hand, and Kirin Holdings or
Kirin Pharma, on the other hand, any matter or question required to
be decided or acted upon by the Board of Directors or stockholders
of Corporation and any matter requiring the consent of any of the
Parties pursuant to this Agreement or any other agreement between
or among Amgen, on the one hand, and Kirin Holdings or Kirin
Pharma, on the other hand, related to Corporation or to the
Products (as defined in Section 17.04.1).
1.25 Non-Asian Pharma
Entity
The term Non-Asian Pharma
Entity shall mean (i) any Person that derives 50% or more of
its consolidated revenues from the development, manufacture,
processing, distribution or sale of pharmaceutical or biotechnology
products outside of Asian Countries, and (ii) any Person
Controlled, directly or indirectly, by any Person described by
clause (i) of this sentence.
1.26 Non-Pharma
Entity
The term Non-Pharma Entity
shall mean any Person that (i) derives less than 10% of its
consolidated revenues from the development, manufacture,
processing, distribution or sale
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of pharmaceutical or
biotechnology products, and (ii) if Controlled, is not
Controlled, directly or indirectly, by any Person other than a
Person described by clause (i) of this sentence.
1.27 Person
The term Person shall mean an
individual, a corporation, a partnership, an association, a limited
liability company, joint venture, estate, trust or other entity of
any kind or nature.
1.28 Purchase
Event
The term Purchase Event shall
mean the first date on which shares of common stock of Kirin Pharma
held of record by Kirin Holdings of which Kirin Holdings is a
Beneficial Owner cease to constitute at least [*] of the total
number of shares of common stock of Kirin Pharma on a fully diluted
basis or cease to represent at least [*] of the votes entitled to
be cast on any matter by holders of Equity Securities of Kirin
Pharma; provided that, if Kirin Holdings acquires [*] of the
outstanding Equity Securities of Target and concurrently therewith
or thereafter consummates a Transitional Transaction, then the fact
that Kirin Holdings owns of record less than [*] of the outstanding
common stock of Kirin Pharma shall not constitute a Control Event
if (i) Target holds of record [*] of the outstanding shares of
common stock of Kirin Pharma, (ii) Kirin Holdings holds of
record [*] of the outstanding Equity Securities of Target, and
(iii) within [*] days following Kirin Holdings’
contribution to Target of shares of common stock of Kirin Pharma,
Kirin Pharma is merged into Target in a transaction constituting a
Qualified Public Merger.
1.29 Qualified Public
Merger
The term Qualified Public
Merger shall mean any merger, consolidation or Share Exchange of
Kirin Pharma with or into any other corporation (a majority of the
Equity Securities of which corporation are listed for trading on a
recognized national or international securities exchange) after the
consummation of which merger, consolidation or Share Exchange at
least 30% but less than 50% of the total number of shares of common
stock of Kirin Pharma, calculated on a fully diluted basis, are
listed for trading on a recognized national or international
securities exchange; provided, however that after the consummation
of a Qualified Public Merger (other than Share Exchange) in which
Kirin Pharma is not the surviving corporation, all references to
shares of common stock of Kirin Pharma herein shall be deemed to be
references to shares of common stock of such surviving
corporation.
1.30 Qualified Public
Offering
The term Qualified Public
Offering shall mean a public offering, registered under the
Securities and Exchange Law of Japan and conducted on a “firm
commitment” basis for an aggregate offering price of not less
than ¥5 billion, of shares of common stock of Kirin Pharma
that upon completion of such offering will be listed on the Tokyo
Stock Exchange and will represent at least 30% but less than 50% of
the total number of shares of common stock of Kirin Pharma on a
fully diluted basis.
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1.31 Qualified Third
Party
The term Qualified Third
Party shall mean any Asian Pharma Entity that is not making or
asserting and, within the past five years, has not made or
asserted, against Amgen or any of its Affiliates or any of their
significant subsidiaries, in any written communication, action,
suit, proceeding or arbitration, any claim which, if resolved other
than in Amgen’s favor, could materially and adversely affect
the business, assets, business relationships, prospects, financial
condition or results of operations of Amgen or any such Affiliate
or significant subsidiary.
1.32 Restricted
Transaction
The term Restricted
Transaction shall mean any transaction or series of transactions
(including but not limited to any issuance, sale, transfer,
assignment, pledge, hypothecation or other disposition or
encumbrance of securities or other assets or property, and any
merger, consolidation, Share Exchange, reorganization,
recapitalization or reverse stock split) as a result of which any
Person or Group (other than Kirin Holdings or an employee of Kirin
Pharma) (i) is or will become the Beneficial Owner of
(A) any Equity Securities of Kirin Pharma and such Beneficial
Ownership could affect the management or business of Corporation,
or (B) any Equity Securities of Corporation, or
(ii) possesses or will possess the right to appoint one or
more members of the board of directors of (A) Kirin Pharma,
where the existence or exercise of such rights could affect the
management or business of Corporation, or (B) Corporation,
other than any (v) issuance, sale or transfer of Equity
Securities of Kirin Holdings to any Qualified Third Party or
Non-Pharma Entity, (w) merger, consolidation, Share Exchange
or similar business combination transaction between Kirin Holdings,
on the one hand, and any Qualified Third Party or Non-Pharma
Entity, on the other, (x) Qualified Public Merger, or
(y) Qualified Public Offering, or (z) Transitional
Transaction in which (I) the Target holds of record all of the
outstanding shares of common stock of Kirin Pharma, (II) Kirin
Holdings holds of record a majority of the outstanding Equity
Securities of Target, (III) the Target has the ability to elect all
of the directors of Kirin Pharma, (IV) Kirin Holdings has the
ability to elect a majority of the directors of Target, and
(V) within 365 days following Kirin Holdings’
contribution to Target of shares of common stock of Kirin Pharma,
Kirin Pharma is merged into Target in a transaction constituting a
Qualified Public Merger.
1.33 Share
Exchange
The term Share Exchange shall
mean a kabushiki-kokan or kabushiki-iten , as those
terms are currently construed under the Japanese Corporation
Code.
2.03 Qualification of
Board Members
Paragraph 12.01 of the
Shareholders’ Agreement is amended by inserting after the
second sentence thereof, the following sentence: “Each member
of the Board of Directors of Corporation (and each candidate
therefor nominated by Kirin or Amgen) shall be an employee of Kirin
or one of its subsidiaries or Amgen or one of its subsidiaries, as
the case may be.”
2.04 Shareholder
Consultation
Paragraph 12 of the
Shareholders’ Agreement is amended by inserting, after
Paragraph 12.03, Paragraphs 12.03A and 12.03B as
follows:
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“12.03A
Administrative Decision-Making
The Parties shall cause all
Administrative Matters to be handled in a manner consistent with
their respective past practices.
12.03B Decision
Deadlocks
12.03B.1 If, with respect to
any Kirin-Amgen Matter, the representatives of the applicable
Parties are unable to reach agreement within [*] calendar days
following the date on which such Kirin-Amgen Matter is first
notified by one Party to the other Party, then either such Party
shall be entitled to implement the consultation process
contemplated by this Paragraph by giving written notice to the
other Party (each, an “ Escalation Notice
”).
12.03B.2 Within [*] calendar
days following receipt of an Escalation Notice, the applicable
Parties shall cause such Kirin-Amgen Matter to be referred to the
President and the Chairman of Corporation (or such designees who
have decision-making authority with respect to such Kirin-Amgen
Matter), and the applicable Parties shall cooperate to cause such
President and Chairman (or their designees) to resolve such
disagreement in good faith within [*] calendar days following the
date of the related Escalation Notice.
12.03B.3 If the President and
the Chairman of Corporation are unable to reach agreement on such
Kirin-Amgen Matter during such period, the applicable Parties shall
cause such Kirin-Amgen Matter to be referred to the attendees of
Kirin and Amgen at the first succeeding executive business meeting
of Corporation and the applicable Parties shall cooperate to cause
such attendees to resolve such disagreement in good faith at such
executive business meeting.
12.03B.4 If such attendees
are unable to resolve such disagreement at such meeting, within [*]
calendar days following such meeting, the applicable Parties shall
cause such Kirin-Amgen Matter to be referred to the respective
Chief Executive Officers of Kirin and Amgen, and the applicable
Parties shall cooperate to cause such Chief Executive Officers to
resolve such disagreement in good faith within [*] calendar days
following the date of the preceding executive business
meeting.
12.03B.5 If the authorized
representatives of the applicable Parties reach agreement with
respect
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