As
filed
with the Securities and Exchange Commission on April 10, 2006.
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
S-8
REGISTRATION
STATEMENT UNDER
THE
SECURITIES ACT OF 1933
ACURA
PHARMACEUTICALS, INC.
(Exact
Name of Registrant as Specified in Its Charter)
New
York
|
|
11-0853640
|
(State
or
Other Jurisdiction of Incorporation or Organization) |
(IRS
Employer Identification
No.)
|
616
N.
North Court, Suite 120, Palatine, Illinois 60067
(Address
of Principal Executive Offices)
Acura
Pharmaceuticals, Inc. 2005 Restricted Stock Unit Award Plan
(Full
Title of the Plan)
Peter
A.
Clemens
Senior
Vice President and Chief Financial Officer
Acura
Pharmaceuticals, Inc.
616
N.
North Court, Suite 120, Palatine, Illinois 60067
(Name
and
Address Of Agent For Service of Process)
________________________________
With
a
Copy to:
John
P.
Reilly, Esq.
St.
John
& Wayne, L.L.C.
Two
Penn
Plaza East, Newark, New Jersey 07105
(973)
491-3600
________________________________
CALCULATION
OF REGISTRATION FEE
Title
of
Securities
To
Be
Registered
|
Amount
To
Be
Registered
(1)
|
Proposed
Maximum
Offering
Price
Per
Share
|
Proposed
Maximum
Aggregate
Offering
Price
|
Amount
of
Registration
Fee
|
|
|
|
|
|
Common
Stock $.01 par value per share, issuable for Restricted Stock
Units
|
30,000,000
|
$0.58
|
$17,400,000
|
$1,862(2)
|
|
|
|
|
|
(1)
The
aggregate amount of securities registered hereunder is 30,000,000 shares of
Common Stock underlying Restricted Stock Units granted or to be granted under
the 2005 Restricted Stock Units Award Plan. Pursuant to Rule 416 promulgated
under the Securities Act of 1933, as amended, this Registration Statement covers
such additional shares of Common Stock to be offered or issued to prevent
dilution as a result of future stock splits, stock dividends or similar
transactions.
(2)
The
fee with respect to these shares has been calculated pursuant to paragraphs
(h)
and (c) of Rule 457 upon the basis of $0.58, the average of the bid and asked
price per share of the Registrant's Common Stock on April 6,, 2006, a date
within five (5) business days prior to the date of filing of this Registration
Statement, as reported by the National Association of Securities Dealers'
Over-the-Counter Bulletin Board, and is based on the rate of $107 per million
set forth in Release Nos. 33-8572/34-51631 (April, 2005)
EXPLANATORY
STATEMENT
We
are
filing this Registration Statement to register 30,000,000 shares of our Common
Stock for issuance pursuant to the Acura Pharmaceuticals, Inc. 2005 Restricted
Stock Unit Award Plan, as amended (the "Plan").
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
Not
required to be filed with this Registration Statement.
ITEM
2.
|
|
REGISTRANT
INFORMATION AND EMPLOYEE PLAN ANNUAL INFORMATION |
Not
required to be filed with this Registration Statement.
ITEM
3.
|
|
DOCUMENTS
INCORPORATED BY REFERENCE |
We
hereby
incorporate by reference into this Registration Statement the following
documents filed with the Securities and Exchange Commission (the "Commission"):
|
1.
|
Our
Annual Report on Form 10-K for the fiscal year ended December 31,
2005,
filed with the Commission on February 21,
2006;
|
|
2. |
Our Current Reports on Form 8-K filed with the
Commission
on January 4, 2006, January 31, 2006, February 21, 2006 and March
28,
2006. |
|
3.
|
The
description of our common stock contained in Form 8-A filed with
the
Commission under the Securities Exchange Act of 1934, as amended
(the
"Exchange Act").
|
In
addition, all documents and reports subsequently filed by us pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act after the date hereof
and prior to the filing of a Post-Effective Amendment which indicates that
all
securities offered have been sold or which deregisters all securities then
remaining unsold, shall be deemed to be incorporated by reference and to be
a
part hereof from the date of filing of such documents. Any statement contained
in a document incorporated or deemed to be incorporated herein by reference
shall be deemed to be modified or superceded for purposes of this Registration
Statement to the extent that a statement contained herein or in any subsequently
filed document which also is or is deemed to be incorporated by reference herein
modifies or supercedes that statement. Any such statement so modified or
superceded shall not constitute a part of this Registration Statement, except
as
so modified or superseded.
ITEM
4.
|
|
DESCRIPTION
OF
SECURITIES |
Not
applicable.
ITEM
5.
|
|
INTERESTS
OF
NAMED EXPERTS AND COUNSEL |
The
legality of the Common Stock to be offered hereby has been passed upon for
the
company by St. John & Wayne, L.L.C., Two Penn Plaza East, Newark, New Jersey
07105. St. John & Wayne, L.L.C. owns 34, 913 shares of the Registrant’s
Common Stock.
ITEM
6.
|
|
INDEMNIFICATION
OF DIRECTORS AND OFFICERS |
Section
722 of the New York Business Corporation Law (the "BCL") provides that a
corporation may indemnify directors and officers as well as other employees
and
individuals against judgments, fines, amounts paid in settlement and reasonable
expenses, including attorney's fees, in connection with actions or proceedings,
whether civil or criminal (other than an action by or in the right of the
corporation, referred to as a "derivative action"), if they acted in good faith
and in a manner they reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe their conduct was unlawful.
A
similar standard is applicable in the case of derivative actions, except that
indemnification only extends to amounts paid in settlement and reasonable
expenses (including attorney's fees) incurred in connection with the defense
or
settlement of such actions, and the statute does not apply in respect of a
threatened action, or a pending action that is settled or otherwise disposed
of,
and requires court approval before there can be any indemnification where the
person seeking indemnification has been found liable to the corporation. Section
721 of the BCL provides that Article 7 of the BCL is not exclusive of other
indemnification that may be granted by a corporation's certificate of
incorporation or by-laws. Article Ninth of the Registrant's Restated Certificate
of Incorporation and Article IV, Section 6 of the Registrant's Restated By-Laws
require the Registrant to indemnify its officers and directors to the fullest
extent permitted under the BCL.
Set
forth
below is Article Ninth of the Registrant's Restated Certificate of
Incorporation:
NINTH:
The Corporation shall, to the fullest extent possible permitted by Sections
721
through 726 of the Business Corporation Law of New York, indemnify any and
all
directors and officers whom it shall have the power to indemnify under said
sections from and against any and all of the expenses, liabilities or other
matters referred to in or covered by such sections of the Business Corporation
Law, and the indemnification provided for herein shall not be deemed exclusive
of any other rights to which the person so indemnified may be entitled under
any
By-Law, agreement, vote of shareholders or disinterested directors or otherwise,
both as to action in his/her official capacity and as to action in another
capacity by holding such office, and shall continue as to a person who has
ceased to be a director or officer and shall inure to the benefit of the heirs,
executors and administrators of such person.
Set
forth
below is Article IV, Section 6 of the Registrant's Restated
By-Laws:
SECTION
6. Indemnification.
It is
expressly provided that any and every person made a party to any action, suit,
or proceeding by or in the right of the corporation to procure a judgment in
its
favor by reason of the fact that he, his testator or intestate, is or was a
director or officer of this corporation or of any corporation which be served
as
such at the request of this corporation, may be indemnified by the corporation
to the full extent permitted by law, against any and all reasonable expenses,
including attorneys' fees, actually and necessarily incurred by him in
connection with the defense of such action or in connection with any appeal
therein, except in relation to matters as to which it shall be adjudged in
such
action, suit or proceeding that such officer or director has breached his duty
to the corporation.
It
is
further expressly provided that any and every person made a party to any action,
suit, or proceeding other than one by or in the right of the corporation to
procure a judgment in its favor, whether civil or criminal, including an action
by or in the right of any other corporation of any type or kind, domestic or
foreign, which any director or officer of the corporation served in any capacity
at the request of the corporation, by reason of the fact that he, his testator
or interstate, was a director or officer of the corporation, or served such
other corporation in any capacity, may be indemnified by the corporation, to
the
full extent permitted by law, against judgments, fines, amounts paid in
settlement, and reasonable expenses, including attorneys' fees, actually and
necessarily incurred as a result of such action, suit or proceeding, or any
appeal therein, if such person acted in good faith for a purpose which he
reasonably believed to be in the best interests of the corporation and, in
criminal actions or proceedings, in addition, had no reasonable cause to believe
that his conduct was unlawful.
The
Registrant maintains a director and officer liability insurance policy that,
subject to the terms and conditions of the policy, provides coverage up to
$10,000,000 in the aggregate (subject to a $200,000 retention for securities
claims and $100,000 for other claims) arising from any wrongful act (as defined
by the policy) committed by a director or officer in his or her capacity as
a
director or officer of the Registrant. The policy reimburses the Registrant
for
amounts spent in lawful indemnification of a director or officer or amounts
provided by the Registrant to indemnify its directors and officers as required
or permitted by law.
ITEM
7.
|
|
EXEMPTION
FROM
REGISTRATION CLAIMED |
Not
applicable.
See
Index
of Exhibits on Page 8.
(a) The
undersigned Registrant hereby undertakes:
(1) To
file,
during any period in which offers or sales are being made, a post-effective
amendment to this Registration Statement:
(i) To
include any prospectus required by Section 10(a)(3) of the Securities Act;
(ii) To
reflect in the prospectus any facts or events arising after the effective date
of this Registration Statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change
in the information set forth in the Registration Statement. Notwithstanding
the
foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20 percent change in the maximum aggregate
offering price set forth in the “Calculation of Registration Fee” table in the
effective registration statement;
(iii) To
include any material information with respect to the plan of distribution not
previously disclosed in the Registration Statement or any material change to
such information in the Registration Statement;
provided,
however,
that
paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the Registration Statement
is on Form S-3, Form S-8 or Form F-3, and the information required to be
included in a post-effective amendment by these paragraphs is contained in
periodic reports filed with or furnished to the Commission by the Registrant
pursuant to Section 13 or Section 15(d) of the Exchange Act that are
incorporated by reference in this Registration Statement.
(2) That,
for
the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(3) To
remove
from registration by means of a post-effective amendment any of the securities
being registered that remain unsold at the termination of the offering.
(b) The
undersigned Registrant hereby undertakes that, for purposes of determining
any
liability under the Securities Act, each filing of the Registrant’s Annual
Report pursuant to section 13(a) or 15(d) of the Exchange Act (and, where
applicable, each filing of an employee benefit plan’s annual report pursuant to
Section 15(d) of the Exchange Act) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act
and
is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted
by such
director, officer or controlling person in connection with the securities
being
registered, the Registrant will, unless in the opinion of its counsel the
matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies
that
it has reasonable grounds to believe that it meets all of the requirements
for
filing on Form S-8 and has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Palatine, State of Illinois, on April 7, 2006.
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|
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ACURA
PHARMACEUTICALS, INC. |
|
|
|
|
By: |
/s/ Andrew
D.
Reddick |
|
Andrew
D. Reddick |
|
President
and
Chief Executive Officer
(Principal Executive
Officer)
|
POWER
OF ATTORNEY
KNOW
ALL
MEN BY THESE PRESENTS, that each person whose signature appears below
constitutes and appoints Andrew D. Reddick and Immanuel Thangaraj, or either
of
them, his true and lawful attorney-in-fact and agent with full power of
substitution and resubstitution, for him and his name, place and stead, in
any
and all capacities, to sign any or all amendments (including post-effective
amendments) to this Registration Statement, and to file the same, with all
Exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission granting unto said attorneys-in-fact and
agents, each acting alone, full power and authority to do and perform each
and
every act and deed requisite and necessary to be done in connection with the
above premises, and fully for all intents and purposes as he might or could
do
in person, hereby ratifying and conforming all that said attorney-in-fact and
agents, each acting alone, or his substitute or substitutes, may lawfully do
or
cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement
has been signed below by the following persons on behalf of the Registrant
and
in the capacities and on the dates indicated.
Signatures
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/
Andrew D. Reddick
|
|
President,
Chief Executive Officer
|
|
April
7, 2006
|
Andrew
D. Reddick
|
|
|
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Director
|
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April
7, 2006
|
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Jerry
Karabelas
|
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/s/
William G. Skelly
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Director
|
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April
7, 2006
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William
G. Skelly
|
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/s/
Bruce F. Wesson
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|
Director
|
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April
7, 2006
|
Bruce
F. Wesson
|
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|
|
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Director
|
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April
7, 2006
|
|
|
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William
Sumner
|
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/s/
Immanuel Thangaraj
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Director
|
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April
7, 2006
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Immanuel
Thangaraj
|
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/s/
Peter A. Clemens
|
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Senior
Vice President and
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April
7, 2006
|
Peter
A. Clemens
|
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(Principal
Financial and Accounting Officer)
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INDEX
OF EXHIBITS
5.1 |
Opinion
of St. John & Wayne , L.L.C. as to the legality of the Common Stock of
the Registrant covered by this Registration Statement
|
10.1 |
Acura
Pharmaceuticals, Inc. 2005 Restricted Stock Unit Award
Plan
|
23.1 |
Consent
of Grant Thornton LLP
|
23.2 |
Consent
of BDO Seidman, LLP
|
23.3 |
Consent
of St. John & Wayne, L.L.C. (included in Exhibit
5.1)
|
24.1 |
Power
of Attorney (included on the signature page
hereto)
|
EXHIBIT
5.1
OPINION
OF COUNSEL
April
7,
2006
Acura
Pharmaceuticals, Inc.
616
N.
North Court, Suite 120
Palatine,
Illinois 60067
Re: Acura
Pharmaceuticals, Inc. Registration Statement on Form
S-8
Ladies
and Gentlemen:
We
have
acted as counsel for Acura Pharmaceuticals, Inc., a New York corporation (the
"Company"), in connection with the preparation of a Registration Statement
filed
with the Securities and Exchange Commission on Form S-8 (the "Registration
Statement") relating to the proposed issuance of up to 30,000,000 (the "Shares")
of the Company's common stock, par value $.01 per share (the "Common Stock")
to
be issued pursuant to the Acura Pharmaceuticals, Inc. 2005 Restricted Stock
Unit
Award Plan (the "Plan").
In
rendering this opinion, we have examined and relied on (i) the Company's
Restated Certificate of Incorporation, as amended, and Restated By-laws, as
amended; (ii) the Plan, (iii) Resolutions adopted by the Board of Directors
of
the Company on December 22, 2005; (iv) the Registration Statement; and (v)
such
other documents, legal opinions and precedents, corporate and other records
of
the Company, and certificates of public officials and officers of the Company
that we have deemed necessary or appropriate to provide a basis for the
opinion.
Based
upon and subject to the foregoing, in our opinion, the Shares will be, when
issued pursuant to the Plan, legally issued, fully paid and non-assessable.
We
consent to the filing of this opinion as an Exhibit to the Registration
Statement.
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|
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Very
truly
yours, |
|
|
|
|
|
/s/
St.
John & Wayne, L.L.C. |
|
|
|
ST. JOHN & WAYNE,
L.L.C. |
EXHIBIT
10.1
ACURA
PHARMACEUTICALS, INC.
2005
RESTRICTED STOCK UNIT AWARD PLAN
1. General
Description.
The
Plan
provides for grants of restricted stock units to employees and Non-Employee
Directors of the Company and its Subsidiaries.
The
purpose of the Plan is to attract, motivate and retain experienced and
knowledgeable employees by offering additional stock based compensation and
incentives to defer and potentially enhance their compensation and to encourage
stock ownership in the Company and to attract and retain qualified
directors.
This
Plan
is intended to comply with Section 409A of the Internal Revenue Code of 1986,
as
amended, in order to avoid compensation deferred under the Plan which is subject
to Code Section 409A from being included in the gross income of Participants
under Code Section 409A and the Plan shall be interpreted consistent with such
intent.
2. Definitions.
The
following definitions shall be applicable throughout the Plan:
"Board"
means the Board of Directors of the Company.
"Cause"
means, with respect to termination of a Participant's employment, or service
as
a Non-Employee Director, the occurrence of any one or more of the
following:
(a)
in
the case of a (A) Non-Employee Director or (B) an employee where there is no
employment, change in control or similar agreement in effect between the
Participant and the Company or a Subsidiary at the time of the grant of the
Restricted Stock Unit award, or where there is such an agreement but the
agreement does not define "cause" (or similar words), the finding by the Board
or the Committee, in the exercise of good faith and reasonable judgment, that:
(1) except in the case of a Non-Employee Director, Participant breached his
or
her employment or service contract or any other agreement (whether verbal or
written) with the Company, (2) Participant has been engaged in disloyalty to
the
Company, including, without limitation, fraud, embezzlement, theft, or proven
dishonesty in the course of his or her employment or service with the Company;
(3) Participant has been convicted of a felony; (4) Participant has committed
gross negligence or willful misconduct in the course of his or her employment
or
service with the Company, or (5) Participant has disclosed trade secrets or
confidential information of the Company to persons not entitled to receive
such
information.
(b)
in
the case of an employee where there is a written employment, change in control
or similar agreement in effect between the Participant and the Company or a
Subsidiary at the time of the grant of the Restricted Stock Unit award that
defines "cause" (or similar words) the termination of an employment arrangement
that is or would be deemed to be for "cause" (or similar words) as defined
in
such agreement.
"Change
in Control - Plan" means in one or a series of related transactions any of
the
following: (a) the acquisition (other than solely from the Company) by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act) other than the Company or any Subsidiary of the beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act)
of more than sixty-six and 2/3 percent (66.66%) of the combined voting power
of
the then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the “Voting Securities”); (b) a reorganization,
merger, consolidation, share exchange, recapitalization, business combination
or
similar combination involving the Company or its capital stock (a "Business
Combination"), other than a Business Combination in which more than thirty-three
and 1/3 percent (33.33%) of the combined voting power of the outstanding voting
securities of the surviving or resulting entity immediately following the
Business Combination is held by the persons who, immediately prior to the
Business Combination, were the holders of the Voting Securities; (c) a sale
or
other transfer (other than license) of all or substantially all of the Company’s
assets (measured by the value or earning power of the assets), including,
without limitation, the sale by the Company of its rights under license
agreements or similar agreements relating to its technology (including the
sale
of royalty payment amounts payable to the Company or its shareholders under
such
agreements); (d) the license or similar agreement by the Company to a third
party or third parties, in one or more transactions, of all rights in and to
the
Company’s technology and, as a result of such transactions, all or substantially
all of the Company’s activities consist of monitoring such arrangements and
collecting fees and payments due thereunder; or (e) a complete liquidation
or
dissolution of the Company.
"Change
in Control - Section 409A" shall mean a Change in Control - Plan, except to
the
extent that (and only to the extent that) such Change in Control - Plan does
not
qualify as a
change
(a)
in
the
ownership or effective control of the Company, or (b) in the ownership of a
substantial portion of the assets of the Company, under
Section 409A of the Code.
"Code"
means the Internal Revenue Code of 1986, as amended.
"Committee"
shall mean the Committee, if any, appointed by the Board under Section 4
hereof.
"Company"
means Acura Pharmaceuticals, Inc. and its successors.
"Disability"
means
(a)
in
the case of a (A) Non-Employee-Director or (B) an employee where there is no
employment, change in control or similar agreement in effect between the
Participant and the Company or a Subsidiary at the time of the grant of the
Restricted Stock Unit award, or where there is such an agreement but the
agreement does not define "disability" (or similar words), then “Disability”
means
the
Participant: (1) is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can
be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months; (2) is, by reason of any medically
determinable physical or mental impairment which can be expected to result
in
death or can be expected to last for a continuous period of not less than twelve
(12) months, receiving income replacement benefits for a period of not less
than
three (3) months under an accident and health plan covering employees and/or
directors of the Company; (3) is determined to be totally disabled by the Social
Security Administration; or (4) any other permitted definition of disability
under Section 409A of the Code and the regulations promulgated thereunder,
and
(b)
in
the case where there is a written employment, change in control or similar
agreement in effect between the Participant and the Company or a Subsidiary
at
the time of the grant of the Restricted Stock Unit award that defines
"disability" (or similar words) the termination of an employment arrangement
that is or would be deemed to be for "disability" (or similar words) as defined
in such agreement.
"Effective
Date" shall
be
the date this Plan is adopted by the Board.
Eligible
Participant” means a Non-Employee Director serving as a director on the date of
grant or an employee employed by the Company or its Subsidiaries on the date
of
grant.
"Exchange
Act" means the Securities Exchange Act of 1934, as amended.
"Fair
Market Value" means the average of the closing bid and closing ask price of
the
Stock as reported on the OTC Bulletin Board or any successor principal market
for the Stock on the applicable date, or if the Stock is not trading on the
OTC
Bulletin Board or an established securities market (within the meaning of
Section 409A of the Code and the regulations promulgated thereunder), the fair
market value of the Stock for the applicable date as determined by a reasonable
valuation method selected by the Board or the Committee.
“Non-Employee
Director" has the definition set forth in Rule 16b-3(b)(3)(i) of the Exchange
Act.
"Participant"
means each person who has been granted a Restricted Stock Unit
award.
"Plan"
means the Acura Pharmaceuticals, Inc. 2005 Restricted Stock Unit Award Plan,
as
set forth herein and as it may be amended from time to time.
“Restricted
Stock Unit Award Agreement” means an agreement described in Section 5(a).
"Restricted
Stock Units" or "RSUs" means an award of Stock Units credited pursuant to
Section 5, which Stock Units are subject to vesting and other restrictions
as
set forth herein.
"Securities
Act" means the Securities Act of 1933, as amended.
"Stock"
means shares of common stock, par value $.01 per share, of the Company,
including any rights attendant thereto upon issuance of the shares, together
with any restrictions, limitations or conditions of and to such rights and
such
other stock or other securities or property into which the Stock (or such
rights) may be converted or for which it is exchanged or substituted (and any
credits thereon), pursuant to Section 10.
"Stock
Unit" means a non-voting unit of measurement that is (a) deemed for bookkeeping
purposes to be equivalent to one outstanding share of Stock solely for purposes
of determining benefits under the Plan, (b) credited to a Participant's Stock
Unit Account pursuant to the grant of Restricted Stock Units under Section
5;
and (c) payable solely in a share of Stock, on a one-for-one basis.
"Stock
Unit Account" means the bookkeeping account maintained by the Company for each
Eligible Participant that is credited with Stock Units in accordance with the
Plan.
"Subsidiary"
means any entity of which a majority of the outstanding voting stock or voting
power is beneficially owned directly or indirectly by the Company.
3. Effective
Date; Duration.
The
Effective Date shall be the date on which the Board adopts this Plan. The Plan
shall continue in effect until all matters relating to Stock Units and the
administration of the Plan have been completed and all payments of such
compensation have been made.
4. Administration.
The
Company’s Board of Directors or a Committee appointed by the Board shall
administer the Plan. If appointed by the Board, the Committee shall be
constituted so as to permit the Plan to continue to comply with Rule 16b-3,
as
currently in effect or as hereafter modified or amended. The Committee appointed
by the Board of Directors shall consist of not less than two members of the
Board of Directors, to administer the Plan on behalf of the Board of Directors,
subject to such terms and conditions as the Board of Directors may prescribe.
Once appointed, the Committee shall continue to serve until otherwise directed
by the Board of Directors. From time to time, the Board of Directors may
increase the size of the Committee and appoint additional members thereof,
remove members (with or without cause), and appoint new members in substitution
therefor, fill vacancies however caused, or remove all members of the Committee
and thereafter directly administer the Plan; provided, however, that at no
time
shall a Committee of less than two members administer the Plan. Notwithstanding
anything to the contrary contained herein, no member of the Committee shall
serve as such under this Plan unless such person is a "Non-Employee Director"
within the meaning of Rule 16b-3(b)(3)(i) of the Exchange Act.
A
majority of the entire Committee shall constitute a quorum, and the action
of
the majority of the Committee members present at any meeting at which a quorum
is present shall be the action of the Committee. The Committee shall have all
of
the powers and duties set forth herein, as well as such additional powers and
duties as the Board of Directors may delegate to it; provided, however, that
the
Board of Directors expressly retains the right in its sole discretion (i) to
elect and to replace the members of the Committee, and (ii) to terminate or
amend this Plan in any manner consistent with applicable law.
The
Committee shall have the authority, subject to the provisions of this Plan,
to
establish, adopt and revise such rules, regulations and forms and agreements
and
to interpret the Plan and make all such determinations relating to the Plan
as
it may deem necessary or advisable. The Committee shall also have the authority,
subject to the provisions of the Plan, to delegate ministerial, day-to-day
administrative details and non-discretionary duties and functions to officers
and employees of the Company. The Committee's interpretation of the Plan or
any
awards granted pursuant hereto and all decisions and determinations by the
Committee with respect to the Plan shall be final, binding, and conclusive
on
all parties. Notwithstanding any provisions of this Plan or any Restricted
Stock
Unit Award Agreement to the contrary, all discretionary interpretations,
decisions or determinations of the Board or the Committee with respect to the
Plan and all RSUs awarded under the Plan shall be made in accordance with the
express terms of the Plan and applicable Restricted Stock Unit Award Agreement
in the exercise of good faith and reasonable judgment.
Notwithstanding
any contrary provision of this Section 4, the Board shall administer the Plan,
and the Committee shall exercise no discretion with respect to any grants to
Non-Employee Directors. In the administration of the Plan with respect to
Non-Employee Directors, the Board shall have all of the authority and discretion
otherwise granted to the Committee with respect to the administration of the
Plan.
5. Restricted
Stock Units.
(a)
Restricted Stock Units may be granted at any time and from time to time as
determined by the Board or the Committee. Each Restricted Stock Units grant
will
be evidenced by a Restricted Stock Award Agreement that will specify such other
terms and conditions as Board or the Committee, in its sole discretion, will
determine, including all other applicable terms, conditions and restrictions
related to the grant, vesting and the number of Restricted Stock Units not
otherwise set forth in this Plan.
(b)
Vesting Period. The Board or the Committee shall determine the vesting of a
Restricted Stock Unit award granted under Section 5(a), and shall set forth
such
vesting in the Restricted Stock Unit Award Agreement.
(c)
Acceleration of Vesting. Notwithstanding Section 5(b), unless expressly provided
otherwise in the Restricted Stock Unit Award Agreement, each Restricted Stock
Unit award shall become fully and immediately vested and nonforfeitable to
the
Participant upon the occurrence of any of the following events:
(1)
a
Participant's service as an employee of the Company is terminated by the Company
without Cause or due to Participant’s death or Participant’s Disability, or in
the case of a Non-Employee Director, Participant’s death or Disability or
Participant is not renominated as a director (other than for “Cause” or refusal
to stand for re-election) or is not elected by the Company’s stockholders, if
nominated; or
(2)
a
Change in Control - Plan.
6. Dividend
and Voting Rights.
Unless
expressly provided for in a Participant’s Restricted Stock Unit Award Agreement,
a Participant shall have no rights as a stockholder of the Company, no dividend
rights and no voting rights, with respect to the RSUs and any shares of Common
Stock underlying or issuable in respect of such RSUs until such shares of Common
Stock are actually issued to and held of record by the Participant. No
adjustments will be made for dividends or other rights of a holder for which
the
record date is prior to the date of issuance of the stock certificate for such
RSU.
7. Restrictions,
Distributions and Changes to Distributions; Payment of
Units.
(a)
Time
and Manner of Distribution. Payment of vested Stock Units in a Participant's
Stock Unit Account in accordance with Section 7(b) shall be made on the earlier
of (i) a Change in Control - Section 409A, or (ii) January 1, 2011. In the
event
of a payment pursuant to a Change in Control - Section 409A under Section
7(a)(i), such payment shall be made in a lump sum payment as soon as
administratively practicable following consummation of said Change in Control
-
Section 409A. In the event of a payment due to Section 7(a)(ii), such payment
shall be made in four equal installments (twenty-five percent on each
installment) on each of January 1, 2011, January 1, 2012, January 1, 2013 and
January 1, 2014; provided, however, that in the event of a Change in Control
-
Section 409A at any time after January 1, 2011 but prior to payment of all
of
Participant’s Stock Units in the Participant’s Stock Unit Account, all of
Participant’s undistributed Stock Units as of consummation of said Change in
Control - Section 409A shall be paid to Participant in a lump sum as soon as
administratively practicable.
(b)
Payment of Units. Upon the occurrence of the distribution events set forth
in
Section 7(a), the Company shall deliver a number of shares of Stock equal to
the
number of vested Stock Units to which the Participant is then entitled under
the
terms of the Plan and the Restricted Stock Unit Award Agreement upon receipt
from Participant of the par value of such shares of Stock. In lieu of requiring
cash payment of such par value, the Company may, in the Participant’s sole
discretion, accept payment of any such par value by withholding from Stock
payments a number of whole shares of Stock whose value is equal to the amount
of
such par value. Valuation for this purpose shall be the Fair Market Value on
the
date of distribution.
(c)
Forfeiture of Unvested Units. Except as provided in Section 5(c) of the Plan
or
in a Participant’s Restricted Stock Unit Award Agreement, to the extent any
portion or a Participant's RSUs have not become vested upon the date the
Participant's services as an employee terminate, such RSUs shall be forfeited
and the unvested portion of the RSU award shall automatically terminate without
any other action by the Participant or the Participant’s Beneficiary as the case
may be and without payment of consideration by the Company.
8. Shares
Subject To The Plan; Share Limits.
Shares
Available for Issuance. Subject to adjustment under Section 10, the aggregate
number of shares of Stock that may be issued under the Plan shall not exceed
thirty million (30,000,000) shares. Stock delivered by the Company to satisfy
payment provisions under Section 7 of the Plan shall be shares of authorized
and
unissued shares of Stock and/or previously issued Stock held as treasury shares
and shall be fully paid and non-assessable when issued. Shares issuable on
payment of Stock Units shall be reserved for issue, and to the extent that
awards terminate or are forfeited without payment in shares, the shares will
be
available for subsequent awards.
9. General.
(a)
Government and Other Regulations. The obligation of the Company to credit Stock
Units, issue or deliver Stock or otherwise make payments under the Plan are
subject to compliance with all applicable laws, rules, and regulations
(including, without limitation, federal and state securities laws), and to
such
approvals by any listing, agency, or regulatory or governmental authorities
as
may, in the opinion of counsel for the Company, be necessary or advisable in
connection therewith. Any securities issued or delivered under the Plan shall
be
subject to such restrictions, and the person acquiring such securities shall,
if
requested by the Company, provide such assurances and representations to the
Company, as the Company may deem necessary or advisable to assure compliance
with all applicable legal requirements.
(b)
Tax
and Withholding. The Company has the right to require the person receiving
Stock
to pay to the Company the amount of any federal, state and local taxes which
the
Company is required to withhold upon the delivery of Stock. In lieu of requiring
cash payment of any such taxes, the Company shall, in the Participant’s sole
discretion, instead withhold from said Participant’s Stock payments a number of
shares of Stock whose value is equal to the amount of such taxes. Valuation
for
this purpose shall be the Fair Market Value on the date of distribution.
(c)
Beneficiaries.
(1)
Beneficiary Designation. Each Eligible Participant may designate in writing
the
Beneficiary or Beneficiaries (as defined in Section 9(c)(2)) whom such Eligible
Participant desires to receive any amounts payable under the Plan after his
or
her death. Beneficiary designations shall be effective on the date such written
designation is received by the Corporate Secretary. An Eligible Participant
may
from time to time change his or her designated Beneficiary or Beneficiaries
without the consent of such Beneficiary or Beneficiaries by filing a new
designation in writing with the Corporate Secretary. However, if a married
Eligible Participant wishes to designate a person other than his or her spouse
as Beneficiary, such designation shall be consented to in writing by the spouse.
The Eligible Participant may change any election designating a Beneficiary
or
Beneficiaries without any requirement of further spousal consent if the spouse's
consent so provides. Notwithstanding the foregoing, spousal consent shall not
be
necessary if it is established that the required consent cannot be obtained
because the spouse cannot be located or because of other circumstances
prescribed by the Board or the Committee. The Company and the Board or the
Committee may rely on the Eligible Participant's designation of a Beneficiary
or
Beneficiaries last filed in accordance with the terms of the Plan.
(2)
Definition of Beneficiary. An Eligible Participant's "Beneficiary" or
"Beneficiaries" shall be the person, persons, trust or trusts so designated
by
the Eligible Participant or, in the absence of such designation, entitled by
will or the laws of descent and distribution to receive the Eligible
Participant's benefits under the Plan in the event of the Eligible Participant's
death, and shall mean the Eligible Participant's executor or administrator
if no
other Beneficiary is identified and able to act under the
circumstances.
(d)
Non-transferability. Except as provided in Section 9(c), a Participant's rights
and interests under the Plan in respect of Stock Units, including Stock
deliverable under or in respect thereof, may not be assigned, pledged, or
transferred.
(e)
Expenses. All expenses incurred by the Company associated with adoption and
administration of this Plan, including all legal expenses related to drafting
this Plan and related documents, shall be borne solely by the
Company.
(f)
Titles and Headings. The titles and headings of the sections in the Plan are
for
convenience of reference only, and in the event of any conflict, the text of
the
Plan, rather than such titles or headings, shall control.
(g)
Governing Law. The validity of the Plan or any of its provisions and any
agreements entered into under the Plan shall be construed, administered and
governed in all respects under the laws of the State of New York. If any
provisions of the Plan shall be held by a court of competent jurisdiction to
be
invalid or unenforceable, the remaining provisions hereof shall continue to
be
fully effective.
(h)
Limitation on Participants' Rights; Unfunded Plan. Participation in the Plan
shall not give any person the right to continued employment or any rights or
interests other than as expressly provided herein. No Participant shall have
any
right to any payment or benefit hereunder except to the extent provided herein.
The Plan shall create only a contractual obligation on the part of the Company
as to such amounts and shall not be construed as creating a trust or fiduciary
relationship between the Company, the Board, the Committee, and any Participant
or other person. Participants and their Beneficiaries shall have no legal or
equitable rights, claims, or interest in any specific property or assets of
the
Company. No assets of the Company shall be held under any trust, or held in
any
way as collateral security for the fulfilling of the obligations of the Company
under this Plan. Any and all of the Company's assets shall be, and remain,
the
general unpledged, unrestricted assets of the Company. The Company's obligation
under the Plan shall be merely that of an unfunded and unsecured promise of
the
Company to pay benefits in the future, and the rights of the Participants and
Beneficiaries shall be no greater than those of unsecured general creditors.
(i)
Rights with Respect to Stock Units. A Participant's Stock Unit Account shall
be
a memorandum account on the books of the Company. The Stock Units credited
to
such account shall be used solely as a device to determine the number of shares
of Stock to be eventually distributed to the Participant, subject to applicable
vesting requirements, in accordance with the Plan. The Stock Units shall not
be
treated as property or as a trust fund of any kind. No Participant shall be
entitled to any voting dividend, or other stockholder rights with respect to
Stock Units credited under the Plan.
(j)
Restricted Stock Unit Award Agreements. Each Restricted Stock Unit award granted
to an Eligible Participant under the Plan shall be evidenced by a writing
approved by the Board or the Committee and will contain the terms and conditions
consistent with the Plan as approved by the Board or the Committee relating
to
the RSUs. This Plan and each Restricted Stock Unit Award Agreement granted
to an
Eligible Participant under the Plan shall be binding upon, and inure to the
benefit of, any successor or successors of the Company, except to the extent
that the Board or the Committee and each Participant having executed a
Restricted Stock Unit Award Agreement determine otherwise as evidenced by a
writing signed by both parties.
(k)
Plan
Construction. By its approval of the Plan, the Board intends that the
transactions contemplated by the Plan satisfy and be interpreted in a manner
that satisfies the applicable requirements of Rule 16b-3 promulgated under
the
Exchange Act so that, among other transactions, the crediting of Stock Units
and
payment in Stock will be entitled to the benefits of Rule 16b-3 or other
exemptive rules under Section 16 of the Exchange Act.
(l)
Notices. Any notice to be given under the terms of this Plan shall be in writing
and addressed to the Company at its principal office, to the attention of the
Corporate Secretary, and to the Participant at his or her last address of
record, or at such other address as either party may designate in writing to
the
other for the purposes of notices in respect of RSUs.
10. Changes
in Capital Structure.
Upon
or
in contemplation of any reclassification, recapitalization, stock split
(including a stock split in the form of a stock dividend) or reverse stock
split; any merger, combination, consolidation or other reorganization; any
split-up; spin-off, or similar extraordinary dividend distribution in respect
of
the Stock (whether in the form of securities or property); any exchange of
Stock
or other securities of the Company, or any similar, unusual or extraordinary
corporate transaction in respect of the Stock; or a sale of substantially all
the assets of the Company as an entirety; then the Board shall, in such manner,
to such extent (if any) and at such time as it deems appropriate and equitable
in the circumstances in the Board’s exercise of good faith and reasonable
judgment, proportionately adjust any or all of (a) the number and type of shares
of Stock (or other securities or property) that thereafter may be made the
subject of Stock Units and Stock Unit Accounts (including the specific maximum
and numbers of shares set forth elsewhere in the Plan), (b) the number, amount
and type of shares of Stock (or other securities or property) payable in respect
of Stock Units, and (c) and the number and type of Stock Units (both credited
and vested) under the Plan.
11. Amendments
and Termination.
The
Board
shall have the right to amend the Plan (including outstanding awards) in whole
or in part from time to time or may at any time suspend or terminate the Plan;
provided, however, that no amendment or termination shall cancel or otherwise
adversely affect in any way, without his or her written consent, any
Participant's rights with respect to Stock Units credited to his or her Stock
Unit Account and no amendment or termination shall accelerate payment of any
benefit which is subject to the rules of Section 409A of the Code in a manner
that would violate the distribution rules of Section 409A of the Code.
Notwithstanding the foregoing, Participant consent shall not be required to
the
extent that the Board determines that applicable law requires amendment or
termination of the Plan to preserve the intended tax benefits to the
Participants and the Company hereunder. Any amendments authorized hereby shall
be stated in an instrument in writing, and all Participants (subject to any
applicable consent requirement above) shall be bound thereby upon receipt of
notice thereof. Changes contemplated by Section 10 shall not be deemed to
constitute changes or amendments for purposes of this Section 11.
Dated:
December 22, 2005
EXHIBIT
23.1
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
have
issued our report dated February 26, 2004, except for Note B, as to which the
date is March 19, 2004, accompanying the consolidated financial statements
and
schedule included in the Annual Report of Acura Pharmaceuticals, Inc. (formerly,
Halsey Drug Co., Inc.) and Subsidiaries on Form 10-K for the year ended December
31, 2005, which is incorporated by reference in this Registration Statement.
We
consent to the incorporation by reference in the Registration Statement of
the
aforementioned report.
/s/
GRANT
THORNTON LLP
GRANT
THORNTON LLP
New
York,
New York
April
6,
2006
EXHIBIT
23.2
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Acura
Pharmaceuticals, Inc.
Palatine,
Illinois
We
hereby
consent to the incorporation by reference in the Prospectus constituting a
part
of this Registration Statement of our report dated February 1, 2006, relating
to
the consolidated financial statements as of and for the years ended December
31,
2005 and 2004 of Acura Pharmaceuticals, Inc. appearing in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2005. Our report contains
an
explanatory paragraph regarding the Company’s ability to continue as a going
concern.
/s/
BDO
Seidman, LLP
Chicago,
Illinois
April
6,
2006