Confidential Materials omitted and filed separately with the Securities and Exchange Commission. Asterisks denote omissions. AMENDMENT NO. 3 TO AGREEMENT
Exhibit 10.5
Confidential Materials omitted and filed separately with the
Securities and Exchange Commission. Asterisks denote omissions.
Securities and Exchange Commission. Asterisks denote omissions.
AMENDMENT NO. 3 TO
AGREEMENT
AGREEMENT
THIS AMENDMENT NO. 3 TO AGREEMENT (this “Amendment”) is made effective as of the
18th day of January, 2008, between IDEXX Operations, Inc., a Delaware corporation whose
principal place of business is at 0000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxxx 00000, X.X.X.
(“IDEXX”) and Ortho-Clinical Diagnostics, Inc., a New York corporation with offices at 000
Xxxxxx Xxxxx Xxxxx, Xxxxxxxxx, Xxx Xxxx, X.X.X. (“OCD”).
WHEREAS, OCD and IDEXX have entered into that certain Agreement dated as of October 16, 2003, as
amended by Amendment No. 1 thereto (“Amendment No. 1”) effective January 1, 2005 and by Amendment
Xx. 0 xxxxxxx xxxxxxxxx Xxxxxxx 00, 0000 (xx so amended, the “Agreement”), regarding supply
by OCD of dry slides for IDEXX veterinary chemistry analyzers;
WHEREAS, OCD and IDEXX have, through a series of discussions, recently reached mutual agreement as
to the allocation of Automation Costs within the meaning of Section 3.08 of the Agreement, as well
as certain other capital costs relating to the production of dry slides under the Agreement;
WHEREAS, OCD and IDEXX now desire to amend the Agreement to reflect the foregoing discussions and
agreement; and
WHEREAS, OCD and IDEXX also desire to extend the term of the Agreement and to make certain other
amendments as set forth hereinbelow.
NOW THEREFORE, the parties hereby agree as follows:
1. Capitalized terms used in this Amendment, which are not otherwise defined, have the respective
meanings ascribed to them in the Agreement.
2. Section 3.03 of the Agreement is hereby amended by (a) deleting the parenthetical “(the
“Development Period”)” from the second sentence thereof and (b) replacing the third
sentence thereof in its entirety with the following: “In connection with such consulting services,
or any other assistance, cooperation, participation or involvement of OCD in relation to the
Development Program during the Term, OCD may, but shall not be obligated to, disclose materials or
other information to IDEXX that OCD considers to be proprietary or confidential.”
3. Section 3.04 of the Agreement is hereby amended by replacing the words “Development Period” with
“first five years following the Commencement Date”.
4. Notwithstanding any of the provisions of Section 3.08 of the Agreement to the contrary, all
Automation Costs, whether incurred or paid prior to or after the date of this Amendment, including
those incurred in connection with the first, second and third slide featuring machines
associated with the capital project known as Catalyst, shall be borne by the parties as follows:
(a) OCD shall bear [**] of such costs, (b) IDEXX shall bear [**] of such costs, and (c) all such
costs in excess of the foregoing $[**] shall be borne [**]; provided, however, that to the
extent any such costs result from a change in the specifications for the New Slide/Panel Design
that is requested by IDEXX after the date of this Amendment, IDEXX alone shall bear such additional
costs.
5. If at any time after the date of this Amendment IDEXX’s and IDEXX BV’s forecasted demand for New
Slides under this Agreement exceeds [**] slides per year in the aggregate, any additional capital
investments and other capital costs directly related to the manufacturing, formatting, packaging or
other processing that is necessary for the production of New Slides and occurs downstream from the
production of VITROS slides (including but not limited to manufacturing equipment, packaging
equipment, facilities and freezers, but excluding injection molding tooling for New Slides and
excluding costs attributable to the production of VITROS slides) that are required in order to meet
such demand shall be borne in equal shares by OCD and IDEXX; provided, however, that to the
extent any such costs result from any addition to or change in materials, labeling, packaging,
profile configurations, panel configurations or other specifications for the New Slide/Panel Design
that is requested by IDEXX or IDEXX BV after the date of this Amendment, IDEXX alone shall bear
such additional costs. For the avoidance of doubt, the foregoing shall not affect IDEXX’s
responsibility for the costs associated with injection molding tooling for New Slides pursuant to
Section 3.08(b) (as amended by Amendment No. 1).
6. Section 18.01 is amended by deleting the same in its entirety and substituting therefor the
following provision: “Subject to the terms and conditions set forth herein, the term (the
“Term”) of the Agreement shall be the period from the Commencement Date until December 31,
2025.”
7. Upon the request of either party from time to time during the Term, the parties shall, within 30
days of such request, cause their respective senior executives to meet to discuss the business
relationship between the parties and any issues that are of concern to either party in relation to
this Agreement or the Europe Agreement (including but not limited to any actual or anticipated
decline in OCD’s financial returns hereunder or thereunder), and to consider ways to address any
such issues. For purposes of this clause, the term “senior executive” shall mean a party’s chief
executive officer or his or her direct report having overall responsibility for the relationship
with the other party under this Agreement and the Europe Agreement.
8. In the event of any conflict between the provisions of this Amendment and the provisions of the
Agreement, the provisions of this Amendment shall control. Except as modified by this Amendment,
all provisions of the Agreement shall continue in full force and effect. All other oral or written
agreements, understandings, promises and representations between the parties with respect to the
allocation of Automation Costs are superseded by this Amendment.
IN WITNESS WHEREOF and intending to be legally bound, the parties hereto have caused this Amendment
No. 3 to be duly executed in duplicate by their respective authorized representatives as of the day
and year first written above.
ORTHO-CLINICAL DIAGNOSTICS, INC. | IDEXX OPERATIONS, INC. | |||||||
By:
|
/s/ Xxxx Xxxxx | By: | /s/ Xxxxx X. Xxxx | |||||
Name: Xxxx Xxxxx | Name: Xxxxx X. Xxxx | |||||||
Title: V.P. Americas | Title: President |
The foregoing Amendment No. 3 to the Agreement
dated as of October 16, 2003 between IDEXX
Operations, Inc. and Ortho-Clinical
Diagnostics, Inc. is hereby consented to and
acknowledged by: IDEXX LABORATORIES, INC., solely as guarantor pursuant to Section 30 of the Agreement |
||||
By: | /s/ Xxxxxxxx X. Xxxxx | |||
Name: | Xxxxxxxx X. Xxxxx | |||
Title: | President and CEO | |||