LICENSE, DISTRIBUTION, MANUFACTURING AND SUPPLY AGREEMENT BY AND BETWEEN LUITPOLD PHARMACEUTICALS, INC., AMERICAN REGENT, INC. AND FRESENIUS USA MANUFACTURING, INC. June , 2008
Exhibit 10.1
LICENSE,
DISTRIBUTION, MANUFACTURING AND SUPPLY AGREEMENT
BY AND BETWEEN
LUITPOLD PHARMACEUTICALS, INC., AMERICAN REGENT, INC.
AND
FRESENIUS USA MANUFACTURING, INC.
June , 2008
BY AND BETWEEN
LUITPOLD PHARMACEUTICALS, INC., AMERICAN REGENT, INC.
AND
FRESENIUS USA MANUFACTURING, INC.
June , 2008
This LICENSE, DISTRIBUTION, MANUFACTURING AND SUPPLY AGREEMENT
(this Agreement”) is made and entered into as of
June , 2008, by and between LUITPOLD
PHARMACEUTICALS, INC., a corporation duly organized and
existing under the applicable laws of the State of New York, and
having a principal place of business in Shirley, New York
(hereinafter referred to as “Luitpold”), AMERICAN
REGENT, INC., a corporation duly organized and existing
under the applicable laws of the State of New York, and having a
principal place of business in Shirley, New York (hereinafter
referred to as “AR”, and Luitpold and AR collectively
referred to as “Luitpold/AR”), and FRESENIUS USA
MANUFACTURING, INC., a corporation duly organized and
existing under the applicable laws of the State of Delaware, and
having a principal place of business in Waltham, Massachusetts
(hereinafter referred to as “FUSA”). VIFOR
(INTERNATIONAL), INC. (hereinafter referred to as
“Vifor”) is also executing this Agreement to indicate
its acknowledgement of and consent to the terms and provisions
hereof, and to agree to those provision hereof that pertain to
it. Luitpold/AR and FUSA are referred to herein individually as
a “Party” and collectively as the “Parties.”
RECITALS:
WHEREAS, Luitpold/AR is party to a Master License Agreement with
Vifor under which Luitpold/AR licenses from Vifor certain rights
and Know-How (as hereinafter defined) relating to the Iron
Products (as defined herein) and under which Vifor manufactures
and supplies to Luitpold/AR the active pharmaceutical ingredient
used in the manufacture of the Iron Products; and
WHEREAS, Luitpold/AR licenses from Vifor the manufacturing,
marketing and distribution rights to the Product sold under the
Venofer®
brand in various formulations, presentations and
strengths; and
WHEREAS, FUSA wishes to obtain from Luitpold/AR a sublicense and
Vifor consents that Luitpold may grant a sublicense to FUSA for
the exclusive right to manufacture (or arrange for the
manufacture), package, label, use, distribute, market, promote,
detail, advertise and sell the Iron Products for the Field in
the Territory (as hereinafter defined), and to utilize the
Trademarks (as hereinafter defined) to identify the Iron
Products in connection with the manufacture, packaging,
labeling, distribution, marketing, promotion, advertisement and
sale thereof for the Field in the Territory as described herein,
and Luitpold/AR and Vifor wish to grant such rights to FUSA on
the terms and conditions set forth in this Agreement; and
WHEREAS, FUSA wishes to contract with Luitpold/AR for
Luitpold/AR to exclusively manufacture and supply the Iron
Products to FUSA and Luitpold/AR agrees to manufacture and
supply, FUSA’s requirements of finished dosage forms of the
Iron Products, for distribution for the Field in the Territory
for the Term (as hereinafter defined), and FUSA wishes to have
Luitpold/AR purchase from Vifor on its behalf, and Vifor agrees
to supply through Luitpold/AR on behalf of FUSA, FUSA’s
requirements of the API (as hereinafter defined) for the Iron
Products for incorporation into finished Product by Luitpold/AR
for distribution for the Field in the Territory for the Term by
FUSA; and
WHEREAS, [*]
NOW, THEREFORE, in consideration of the mutual covenants and
agreements hereinafter set forth and other good and valuable
consideration, the receipt and legal sufficiency of which are
hereby mutually acknowledged, Luitpold/AR and FUSA hereby agree,
and Vifor consents to such agreement, as follows:
ARTICLE 1
DEFINED TERMS
1.01 Defined Terms. The following terms,
whether used in the singular or plural, shall have the meanings
assigned to them below for purposes of this Agreement:
“API” means, as applicable, the active
pharmaceutical ingredient used in the manufacture of any of the
Iron Products.
“Adverse Event” shall mean any adverse event
associated with the use of the Iron Products in humans, whether
or not considered drug-related, including (i) an adverse
event occurring in the course of the use of the Iron Products in
professional practice; (ii) an adverse event occurring from
an overdose, whether accidental or intentional, related to the
Iron Products; (iii) an adverse event occurring from drug
abuse related to the Iron Products; (iv) an adverse event
occurring from withdrawal of the Iron Products; and (v) any
failure of expected pharmacological action of an Iron Product,
or such other definition as may from time to time be set forth
in 21 CFR Part 314.80.
“Affiliate” means, with respect to any Person,
any other Person, that directly or indirectly controls, is
controlled by, or is under common control with, such Person. For
such purposes, control, controlled by and under common control
with shall mean the possession of the power to direct or cause
the direction of the management and policies of an entity,
whether through the ownership of voting stock or partnership
interest, by contract or otherwise. In the case of a
corporation, the direct or indirect ownership of fifty percent
(50%) or more, or the ownership percentage as required under
local jurisdiction, of its outstanding voting shares or the
ability otherwise to elect a majority of the board of directors
or other managing authority of the entity shall in any event be
deemed to confer control, it being understood that the direct or
indirect ownership of a lesser percentage of such shares shall
not necessarily preclude the existence of control.
“Agreement” means this agreement, together with
all appendices, exhibits and schedules hereto, as the same may
be amended or supplemented in accordance with this Agreement.
[*]
[*]
“Applicable Laws” means all laws (including the
common law), ordinances, rules and regulations, written
governmental interpretations thereof, guidance related thereto
or the application thereof, applicable to this Agreement or the
activities contemplated hereunder, including without limitation
the FDA Act and applicable regulations, federal and state
anti-kickback laws, privacy laws, consumer protection statutes,
laws relating to sample accountability or Iron Products pedigree
and any requirements under any Product Registrations applicable
to the Iron Products for the Field in the Territory.
“ASP” means average sales price as that term is
defined in 42 U.S.C.
§ 1395w-3a,
as such statute may be amended.
“Business Day” means any day that is not a
Saturday, Sunday or a United States federal holiday.
“Calendar Quarter” means a period of three
(3) consecutive calendar months commencing each
January 1, April 1, July 1, and September 1 and
ending each March 31, June 30, September 30 and
December 31, as the case may be.
[*]
“cGMPs” means current Good Manufacturing
Practices, as defined in under 21 U.S.C.
section 351(a)(2)(B) and the FDA regulations promulgated
thereunder, including without limitation, 21 C.F.R.
Section 210 et seq., as amended and in effect from time to
time.
“Certificates of Analysis and Compliance” shall
mean the certificate of analysis confirming the identity,
strength, quality and purity of the Lot to which it pertains
together with the certificate of compliance confirming that the
same Lot was manufactured, tested, stored and supplied in
compliance with cGMPs and Applicable Laws, each such certificate
signed by an authorized signatory of Luitpold/AR.
“Claim” means a FUSA Claim or a Luitpold/AR
Claim, as applicable.
“CMS” means the Centers for Medicare and
Medicaid Services of the U.S. Department of Health and
Human Services.
[*]
2
“Commercially Reasonable Efforts” of a Party
means those efforts consistent with the exercise of its prudent
clinical, scientific and business judgment as applied to other
commercialization efforts for products of similar clinical,
scientific and commercial potential within the relevant product
lines of such Party.
“Confidential Information” has the meaning set
forth in Section 10.01(a).
“Confidentiality Agreement” has the meaning set
forth in Section 10.01(b).
“Contract Year” means each period of twelve
consecutive months beginning on the Effective Date and each
anniversary of the Effective Date during the term of this
Agreement. A Contract Year may be designated by the calendar
year in which it begins, e.g., “Contract Year 2008”
will be the Contract Year beginning in 2008.
“DDMAC” means the FDA’s Division of Drug
Marketing, Advertising and Communications.
“Discrepancy Reports” shall mean deviation
reports pertaining to API or Iron Products generated by
Luitpold/AR or Vifor that contain information relating to
deviations that may require reporting to the FDA or a regulatory
authority.
“Drug Master File” or “DMF”
shall mean a voluntary submission that may be used to provide
confidential, detailed information about any of the Iron
Products, API and facilities, processes, or articles used in the
manufacturing, processing, packaging, and storing of the Iron
Products or API.
“Effective Date” means the first day of the
month immediately following at least thirty (30) days after
the date on which all conditions set forth in Section 13.01
have been satisfied or waived in writing.
[*]
“Employees” has the meaning set forth in
Section 3.10(a).
“EOC” has the meaning set forth in
Section 12.16.
“Escrow Agent” has the meaning set forth in
Section 6.11.
“Escrow Agreement” has the meaning set forth in
Section 6.11(h).
“Escrow Materials” has the meaning set forth in
Section 6.11(h).
“Executive Oversight Committee” shall have the
meaning set forth in Section 12.16.
“FDA” means the United States Food and Drug
Administration, or any successor agency of the
United States.
“FDA Act” shall mean the Federal Food Drug and
Cosmetic Act, as amended, and as may be amended from time to
time.
“Federal and State Programs” has the meaning
set forth in Section 3.07(c).
“Field” means the provision of hemodialysis and
peritoneal dialysis services to Stage V Hemodialysis
Dependent — Chronic Kidney Disease (HDD-CKD) patients
and Peritoneal Dialysis Dependent — Chronic Kidney
Disease (PDD-CKD) patients in Independent Outpatient Dialysis
Facilities.
“FUSA Warehouse” means a warehouse of finished
Iron Products to be maintained by FUSA, which shall be located
initially at Charlotte, North Carolina.
“FUSA Claim” has the meaning set forth in
Section 8.01.
“FUSA Party” has the meaning set forth in
Section 8.01.
“Governmental Authority” means any Federal,
state, local or foreign governmental authority, agency or other
body.
“Independent Outpatient Dialysis Facilities”
means facilities that are not hospital-based facilities and do
not meet all of the criteria set forth in 42 C.F.R.
§ 413.174(c) (and any successor or amended
regulations) as follows: (1) the facility is subject to the
bylaws and operating decisions of a common governing board which
3
has final administrative responsibility, approves all personnel
actions, appoints medical staff, and carries out similar
management functions; (2) the facility’s director or
administrator is under the supervision of the facilities’
chief executive officer and reports through him or her to the
governing body; and (3) the facility is financially
integrated, as evidenced by the cost report, which reflects
allocation of overhead to the facility through the required step
down methodology.
“Intellectual Property” means all intellectual
property rights, including rights to inventions, US and foreign
patents and patent applications, divisions, continuations,
continuations in part, reissues or extensions thereof, Trade
Secrets, Know-How and copyrights but excludes Trademarks, as
listed on
Exhibit 1.01-C,
and which will be updated each September 30th and
March 31st of each Annual Period.
“Iron Products” means the Products and [*].
“Know-How” means ideas, designs, concepts,
compilations of information, methods, techniques, procedures and
processes, inventions and discoveries, whether or not
patentable, used or useful in the manufacture, packaging,
labeling, use, promotion, distribution, or sale of the Iron
Products.
“Knowledge” of a Person other than a natural
person means the actual knowledge of the officers of such Person
having operating responsibility for the business of such Person.
“Licensed Technology” means all Know-How, Trade
Secrets, Intellectual Property, Trademarks, and Manufacturing
Documentation used or useful in the manufacture, packaging,
labeling, use, promotion, distribution, or sale of Iron Products
in the Field.
“Licensee” shall mean FUSA.
“Lot” shall mean a single production run of any
Iron Product.
“Lot Documentation Package” shall mean all of
the following related to a given Lot: (a) with respect to
API, a Certificate of Analysis and Compliance, a summary list of
Discrepancy Reports, and the actual Discrepancy Reports upon
request by FUSA where required to release any Iron Product in
the Territory and (b) with respect to Iron Products, a
Certificate of Analysis and Compliance, batch production
records, Discrepancy Reports and lot disposition form(s) signed
by Luitpold/AR. In any event, Luitpold/AR shall provide FUSA all
documentation required by the FDA or any Governmental Authority.
If actual Discrepancy Reports are necessary for FUSA to comply
with the requirements of the FDA or any Governmental Authority
in the Territory and FUSA has submitted such request to
Luitpold/AR, thereafter, the Lot Documentation Package shall
include for each Lot the actual Discrepancy Reports (not merely
the summaries thereof).
“Luitpold/AR Claim” has the meaning set forth
in Section 8.02.
“Luitpold/AR Entities” means Luitpold/AR and
those Luitpold/AR Affiliates that manufacture, distribute, sell,
promote or market any Iron Products in the Territory.
“Luitpold/AR Party” has the meaning set forth
in Section 8.02.
“Luitpold/AR Suppliers” has the meaning set
forth in Section 6.11.
“Manufacturing Documentation” means, with
respect to any Iron Product, all Licensed Technology, any and
all current validation reports, any current formulation’s
manufacturing instructions, and current batch record templates,
which are specific to or otherwise used in Secondary Manufacture
of the finished form of the Iron Product. For avoidance of
doubt, it is understood and agreed that the term
“Manufacturing Documentation” shall only apply to such
documents as are used in, or that relate to, the finished goods
manufacturing process, and shall not in any case apply to the
Primary Manufacturing process or to the synthesis of any of the
API or Substance in the Iron Product.
[*]
“Material Adverse Effect” when used in
connection with a Party means any change, event, violation,
inaccuracy, circumstance or effect that is materially adverse to
the business, assets (including intangible assets),
capitalization, financial condition or results of operations of
such entity and its parent (if applicable) or
4
subsidiaries taken as a whole; provided, however, that
“Material Adverse Affect” shall not include changes,
events, violations, inaccuracies, circumstances and effects that
are caused by conditions affecting the United States
economy as a whole.
“NDA” means the Luitpold/AR New Drug
Application
21-135
related to Iron Sucrose Injection, U.S.P., [*] requesting
permission to place a drug on the market in accordance with
21 CFR Part 314, and all amendments or supplements
filed pursuant to the requirements of the FDA, including all
documents, data and other information concerning such Iron
Product which are necessary for FDA approval to market such Iron
Product in the Territory.
“NDC” means each of Luitpold’s/AR and
FUSA’s National Drug Code. For Luitpold/AR this means NDC
0517-2310
and
0517-2340
and for FUSA this means
49230-534
and
49230-103,
plus any NDC codes added during the Term of the Agreement.
[*]
“New Law” has the meaning set forth in
Section 5.01(a)(iv).
[*]
[*]
“NOV” means notice of violation.
“Party” and “Parties” have the
meaning set forth in the introductory paragraph; provided, that
for purposes of Articles 9, 10, Section 7.05(a) and
Section 13.01(c) and to the extent Vifor makes an express
representation, warranty or covenant herein, Vifor shall also be
a Party and one of the Parties.
“Person” means any natural person, corporation,
firm, business trust, joint venture, association, organization,
company, partnership, limited liability company, or other
business entity, or any government or any agency or political
subdivision thereof (including but not limited to FDA).
“Primary Manufacture” or “Primary
Manufacturing” means the process used in the manufacture of
the API or Substance (including, but not limited to the
synthesis thereof), the result of which will be used in
Secondary Manufacturing of a pharmaceutical product, including
without limitation the Products.
“Products” means the pharmaceutical product
covered by NDA
21-135 in
all dosage forms, formulations, line extensions and package
configurations and comprising iron sucrose as an active
ingredient marketed by Luitpold/AR or its Affiliate in the
Territory under the trademark
Venofer®
and any improvements to such formulations or dosages (that do
not require the application for a new Product Approval), as may
hereafter be distributed by or licensed to Luitpold/AR or its
Affiliates in the Field within the Territory during the Term.
“Product Approval” shall mean an NDA for an
Iron Product.
“Product Packaging Materials” means all
packaging materials used in the Secondary Manufacture of, and
shipment of, the Iron Products, as in effect on the date hereof,
including primary and secondary containers, closures, tertiary
packaging materials, labels and leaflets, all as revised from
time to time in accordance with the terms and conditions of this
Agreement.
“Product Registration” means the approvals or
registrations (other than the FUSA NDC) for any of the Iron
Products which have been, or may hereafter be, received by
Luitpold/AR or Vifor in the Territory, including without
limitation the Drug Master File (DMF) and NDA for the Iron
Product.
[*]
“Product Specifications” shall mean all
specifications for an Iron Product set forth in the Product
Registration for the Iron Product.
[*]
“Recall” has the meaning set forth in
Section 6.05.
5
[*]
“Renewal Option” has the meaning set forth in
Section 11.01.
[*]
[*]
“Secondary Manufacture” or “Secondary
Manufacturing” means the manufacturing and packaging
process used in formulating the API and all excipients into a
final dosage form of a pharmaceutical product.
“Serious Adverse Event” means an Adverse Event
occurring at any dose that results in any of the following
outcomes: death, a life-threatening Adverse Event, inpatient
hospitalization or prolongation of existing hospitalization, a
persistent or significant disability/incapacity, or a congenital
anomaly/birth defect. Important medical events that may not
result in death, be life-threatening, or require hospitalization
may be considered a Serious Adverse Event when, based upon
appropriate medical judgment, they may jeopardize the patient or
subject and may require medical or surgical intervention to
prevent one of the outcomes listed in this definition.
“Substance” shall mean API or any
intermediaries thereof, which shall be identified by a CAS
Registry Number, RN number or complete chemical description.
“Term” means the period during which this
Agreement is in full force and effect pursuant to
Section 11.01.
“Territory” means the United States of America
and its territories and possessions.
“Third Party” means any Person other than a
Party, an Affiliate of a Party, Vifor or an Affiliate of Vifor.
[*]
“Trade Secrets” means business or technical
information related to the manufacture, packaging, labeling,
use, promotion, distribution, or sale of the Iron Products
including, but not limited to, formulas or methods of
manufacturing and production and Know-How that is not generally
known to Third Parties and that derives actual or potential
commercial value from not being generally know to Third Parties.
“Transfer” has the meaning set forth in
Section 2.07(a).
[*]
[*]
1.02 Terms Generally. All references
herein to Articles, Sections, paragraphs, clauses, Exhibits and
Schedules shall be deemed references to Articles, Sections,
paragraphs, clauses Exhibits and Schedules to this
Agreement unless the context shall otherwise require.
ARTICLE 2
LICENSE AND
APPOINTMENT OF DISTRIBUTOR; RIGHTS AND LIMITATIONS;
RIGHTS OF
FIRST REFUSAL FOR THE PRODUCTS
2.01 Products License and Appointment.
(a) Subject to the terms of this Agreement, Luitpold/AR
hereby grants to FUSA, and Vifor consents to such grant, an
exclusive right and license (exclusive even as to Luitpold/AR,
Vifor and their respective Affiliates), limited to the Field, to
use the Licensed Technology to make, have made, manufacture,
have manufactured, package, label, use, promote, distribute,
offer for sale and sell the Product within the Territory during
the Term; [*]. Except to the extent otherwise provided in this
Agreement, the rights granted to FUSA pursuant to this
Section 2.01 may not be sublicensed without the prior
written approval of Luitpold/AR. In addition, subject to the
terms and conditions of this Agreement, Luitpold/AR hereby
appoints FUSA as Luitpold/AR’s exclusive distributor
(exclusive even as to Luitpold/AR and Vifor and their respective
Affiliates) of the Product for the Field within the
6
Territory, and, in connection therewith, grants to FUSA the
exclusive right (exclusive even as to Luitpold/AR and Vifor and
their respective Affiliates) to market, promote, advertise, sell
and distribute the Products for the Field within the Territory.
The appointment made in the preceding sentence shall commence as
of the Effective Date and continue throughout the Term, and
shall not survive past the termination or expiration of the Term
except as provided in Section 11.06. Luitpold/AR and its
Affiliates shall not engage in any sale or distribution (except
to the extent provided in Section 2.01(b) below) of the
Products for the Field within the Territory during the Term;
FUSA shall not engage in any sale or distribution of the
Products outside the Field or the Territory during the Term.
FUSA shall not knowingly sell to any of its Affiliates or any
Third Party outside the Territory Products for resale inside the
Territory. If Luitpold/AR becomes aware of any sale of Iron
Products by FUSA or its Affiliates outside the Field or the
Territory, or if FUSA becomes aware of any sale of Iron Products
by Luitpold/AR in the Field in the Territory, the Party becoming
aware of such sale shall bring the circumstances of such sale to
the attention of the EOC for resolution.
(b) Luitpold/AR shall retain the right to ship Products
through its distribution channels in the Territory, as long as
such shipment is solely in connection with providing Products to
a Third Party for sale outside the Field or Territory or to FUSA
for the Field within the Territory. Luitpold/AR will work with
FUSA to transition all wholesalers contracts servicing the Field
to FUSA, including AMD, Metro and AmeriSourceBergen.
(c) [*]
(d) In order to ensure a smooth transition to FUSA of
Luitpold/AR’s customer’s for the Products in the Field
within the Territory, FUSA and Luitpold/AR shall send a letter
to all Luitpold/AR customers informing such customers that FUSA
is the exclusive manufacturer and distributor of the Products in
the Field within the Territory from and after the Effective
Date. The form of such letter is attached hereto as
Exhibit 2.01(d-1).
Upon termination or expiration of this Agreement, FUSA and
Luitpold/AR shall send a letter to all FUSA customers informing
such customers that Luitpold/AR is the exclusive manufacturer
and distributor of the Iron Products in the Field within the
Territory from and after the termination/expiration date. The
form of such letter shall be similar in substance to that
attached hereto as
Exhibit 2.01(d-2).
2.02 [*]
(a) [*]
(b) [*]
(c) [*]
(d) [*]
(e) [*]
(f) [*]
(g) [*]
(h) [*]
(i) [*]
(j) [*]
2.03 Territorial Limitation. FUSA agrees
that it shall conduct its sale and distribution of the Iron
Products solely in the Field within the Territory. FUSA shall
not sell, market, promote, advertise or distribute the Iron
Products outside the Field or Territory. FUSA shall not
knowingly sell the Iron Products, directly or indirectly, to any
Third Party in the Territory for resale outside the Territory or
outside the Field. Luitpold/AR shall use Commercially Reasonable
Efforts to ensure that its Affiliates, agents or representatives
shall not sell the Iron Products, directly or indirectly, to
Third Parties in the Field within the Territory. [*]
2.04 Restriction on
Sub-Distributors. Without the prior written
consent of Luitpold/AR (which consent shall not be unreasonably
withheld, delayed or conditioned), FUSA shall not grant to any
Third Party any rights to market, promote, advertise, sell or
distribute the Iron Products, and shall not enter into any
agreement or
7
arrangement with respect to co-promoting the Iron Products. The
foregoing notwithstanding, FUSA may employ the services of a
Third Party in (a) the detailing of the Iron Products to
healthcare professionals in the Field within the Territory, so
long as any sales representative deployed by such Third Party
for FUSA for such purpose shall at such time not detail products
that are competitive with the Iron Products, (b) the
receiving, warehousing, and shipping of the Iron Products for
FUSA, or (c) the acceptance of orders, generation of
invoices and collection and management of receivables with
respect to FUSA’s sales of the Iron Products.
2.05 Compliance with Product Registration Resale in Same
Packaging. FUSA shall not at any time do, and
neither shall Luitpold/AR do or permit its agents or
representatives to do, any act in violation of the Product
Registration for any of the Iron Products in the Field within
the Territory. In the event that any filings are required to be
made with or approvals required to be obtained from applicable
regulatory authorities in order to sell the Iron Products to
FUSA or for FUSA to initiate distribution, marketing,
advertisement, sale or promotion of the Iron Products in the
Field within the Territory, the Parties shall cooperate fully to
ensure that such filings and approvals are obtained or made as
expeditiously as reasonably practicable. FUSA shall not alter in
any manner any of the Iron Products or its packaging as
manufactured for it by Luitpold/AR hereunder and shall sell the
Iron Products without alteration in the form manufactured for it
by Luitpold/AR. FUSA shall be responsible for all costs and
expenses relating to same if for use in the Field.
2.06 No Ownership Rights Conveyed on Effective
Date. Except for FUSA’s right to use the
Trademarks and Manufacturing Documentation pursuant to
Section 3.03 hereof, [*], no other right or license under
any Trademark, the Manufacturing Documentation or under any
patent rights or know-how owned or controlled by Luitpold/AR or
any of its Affiliates to make or have made the Iron Products is
granted under this Agreement to FUSA.
2.07 [*]
(a) [*]
(b) [*]
(c) [*]
(d) [*]
(e) [*]
2.08 [*]
ARTICLE 3
FUSA
RESPONSIBILITIES
3.01 Distributor Diligence. In
fulfillment of its obligations under this Agreement, during the
Term, FUSA shall:
(i) provide, at its expense, a traceability system for the
Iron Products reasonably comparable to customary industry
practices and as required by Applicable Laws;
(ii) use Commercially Reasonable Efforts to ensure that all
sales force personnel promote the Iron Products in a manner that
is consistent with each Iron Product’s applicable Product
Registration and labeling and that is permitted by Applicable
Laws in the Field. If FUSA becomes aware of any such activity in
contravention of the immediately foregoing standards, FUSA shall
take prompt affirmative action to ensure that such activity
shall cease, and take additional remedial action to advise its
sales personnel concerning the activities described in this
subsection;
(iii) use Commercially Reasonable Efforts not to take any
action constituting a violation of Applicable Laws or breach of
this Agreement and that would have a Material Adverse Effect on:
(a) the commercialization of the Iron Products for the
Field in the Territory; or
8
(b) the then existing business of Luitpold/AR, its
Affiliates and licensees with respect to Iron Products outside
of the Territory and Field;
(iv) obtain, as soon as reasonably practicable following
the Effective Date, and no later than six (6) months
following the Effective Date, at FUSA’s sole and exclusive
expense, any and all requisite NDC’s in FUSA’s name
for the Product and, [*] except as otherwise provided in this
Agreement, obtain any and all governmental approvals as are
required for FUSA to fulfill its obligations hereunder.
Luitpold/AR shall cause the NDC number obtained by FUSA to
appear on all Iron Products (other than Products consisting of
current inventory of finished goods on the Effective Date)
manufactured by Luitpold/AR for FUSA;
(v) maintain the availability of the current package
inserts with respect to the Iron Products on any website
maintained by FUSA or its Affiliates for the distribution,
marketing, promotion, detailing, advertising or sale of the Iron
Products and at such other locations where FUSA or any such
Affiliates make information regarding the Iron Products
available; and
(vi) use Commercially Reasonable Efforts to sell, market,
detail, promote, advertise and distribute the Iron Products in a
manner that will not have a Material Adverse Effect on the Iron
Products.
(vii) Exclusively purchase API from Luitpold/AR (who will
exclusively purchase it from Vifor) and have Iron Products
exclusively manufactured by Luitpold/AR, [*].
3.02 Promotional Materials and
Activities.
(a) Subject to the provisions of Section 3.02(b)
below, FUSA shall be solely responsible, at its sole expense and
under its sole control, subject to review by Luitpold/AR, for
conducting all promotional activities and for designing,
preparing and distributing all materials, advertisements and
activities used in the promotion, advertising and marketing of
Iron Products for the Field within the Territory. FUSA shall
ensure that all materials, advertisements and promotional
activities comply with, and FUSA shall be solely responsible and
liable for any failure of such materials and activities to
comply with, the applicable labeling and Product Registration
for any of the Iron Products and with Applicable Laws and
regulations, unless, Luitpold/AR shall not have conducted any
prior review or approval of such materials or activities or such
materials or activities may have been previously used or
conducted by Luitpold/AR. FUSA shall be solely responsible for
fulfilling regulatory requirements pertaining to its promotional
materials and activities, including, without limitation, sole
responsibility for submitting to FDA all promotional and
advertising materials prepared by or for FUSA at the time of
initial dissemination, by way of a
Form FDA-2253,
consistent with 21 C.F.R. Part 314.81. To this effect,
Luitpold/AR shall, upon the Effective Date, or as soon
thereafter as is reasonably practicable, place a letter on file
with DDMAC with respect to the Products advising DDMAC that FUSA
shall be the sole marketer and promoter of the Products for the
Field in the Territory and requesting that DDMAC address
regulatory inquiries and concerns regarding FUSA’s
promotional activities to FUSA as well as Luitpold/AR. FUSA
shall promptly, but in no event less than ten (10) Business
Days after FUSA’s receipt thereof, provide a copy to
Luitpold/AR of any correspondence from a Governmental Authority
with respect to any of the Iron Products, including, but not
limited to, the FDA, reflecting any purported legal or
regulatory violations or legal or regulatory action being
considered or taken by such Governmental Authority, including
without limitation, copies of FDA NOV’s and Warning
Letters. FUSA shall provide Luitpold/AR with a written request
for approval of any promotional materials or advertising and
Luitpold/AR shall review and approve the same. In the event that
FUSA receives no objection within ten (10) Business Days
after a written request for approval, the promotional materials
or advertising shall be deemed to have been reviewed and
approved by Luitpold/AR. FUSA will incorporate any reasonable
changes requested by Luitpold/AR in its review of materials and
Luitpold/AR will provide its reasons for any required changes.
FUSA will provide Luitpold/AR in writing with its reasons for
not incorporating any changes requested by Luitpold/AR. FUSA
shall absorb and be solely responsible for any and all lost
profits, lost revenues, damages, losses, expenses and costs
incurred by FUSA and its Affiliates pursuant to the terms of
this Agreement arising from the failure of any promotional
materials or advertising used, or activities conducted by, FUSA
to comply with the applicable labeling, the Product
Registrations
and/or with
Applicable Laws.
(b) If FUSA (or Luitpold/AR) shall receive a Warning Letter
from FDA which relates to manufacturing, marketing, promotion,
advertisement, sale or distribution of Iron Products after the
Effective Date, or FUSA (or
9
Luitpold/AR) shall receive an NOV from the FDA which relate to
manufacturing, marketing, promotion, advertisement, sale or
distribution of Iron Products after the Effective Date, either
FUSA or Luitpold/AR shall have the right to call, and the other
Party shall participate/or attend at its own expense, a meeting
of the Parties (which shall include, but not be limited to
senior level operational, manufacturing, regulatory affairs,
marketing and sales management of each Party) to be held in
Boston, Massachusetts and New York, New York, on an alternate
basis. The purpose of such meeting shall be to discuss the
actions or missions, promotional pieces or practices which led
to the issuance of the Warning Letter or the NOV’s, as the
case may be, and to discuss, if appropriate, appropriate
corrective or remedial measures to the Party’s promotional
review process.
(c) Luitpold/AR acknowledges that it is actively promoting
the Product for the Field in the Territory and has provided FUSA
with copies of any advertising, promotional or training
materials in its possession and used by Luitpold/AR relating to
the Product, and shall permit FUSA, subject to compliance by
FUSA with Applicable Laws, to update, adapt and use such
materials for the Field in the Territory in developing new
promotional materials (subject to any copyrights of Third
Parties in such materials). Luitpold/AR reserves and retains
title and all rights, including copyright rights, in and to all
written, visual and electronic works and other materials
(including without limitation training materials, promotion
materials, brochures and other detail literature) provided by it
to FUSA under this Agreement. Subject to the foregoing, FUSA is
granted the nonexclusive right under this Section to use, copy,
modify, and distribute such materials only for the purposes of
this Agreement and in furtherance of the rights granted to FUSA
hereunder, for the Term for any of the Iron Products to which
such works and materials relate. FUSA shall ensure that all
copyright notices and this permission notice appear on all
copies of the written materials provided by Luitpold/AR and all
adaptations and derivative works thereof. Any and all new
promotional material developed by FUSA, including that which
adapts or utilizes materials supplied to FUSA by Luitpold/AR,
shall be filed with FDA at the time of initial dissemination via
Form FDA-2253.
Luitpold/AR represents and warrants to FUSA that any promotional
or training materials or advertising used or activities provided
by it to FUSA hereunder complies with the applicable labeling,
the applicable Product Registrations, Applicable Laws,
and/or any
comments, guidance or direction given by FDA or DDMAC in the
Pre-Launch Process, including without limitation, the FDA’s
Guidance on Industry-Supported Educational and Scientific
Activities and the OIG Guidance.
(d) FUSA shall have strategic responsibility and sole
authority and responsibility, at its sole expense, for
conducting independent and non-independent symposia, speaker
training and engagement programs, advisory board meetings and
other consulting arrangements, scientific exhibits and other
types of scientific exchange, and other such events or programs
as FUSA, in its sole discretion, deems to be appropriate with
respect to marketed and approved Iron Products for the Field
within the Territory; provided, however, that any and all such
events and programs must comply in all respects with Applicable
Laws and relevant FDA policies, including without limitation,
the FDA’s Guidance on Industry-Supported Educational and
Scientific Activities and the OIG Guidance.
3.03 Use of Trademarks; Trade
Dress. During the Term of this Agreement, and
subject to the terms and conditions of this Agreement:
(a) FUSA shall have the right to use the Trademarks, on an
exclusive royalty-free basis (other than the payments required
hereunder), to manufacture (or have manufactured), promote,
market, sell and distribute the Iron Products for the Field
within the Territory. Except as otherwise agreed to by
Luitpold/AR, FUSA shall not identify the Iron Products by any
designation other than the Trademarks for the Products. With
respect to all Iron Products which bear FUSA’s NDC codes as
provided herein, FUSA shall be identified as the distributor of
such Products and as having the Iron Products manufactured for
FUSA on the Iron Products’ label as the same may be
required and specified under Applicable Law, or if Applicable
Law does not specify how the licensee or distributor shall be
indicated on an Iron Product’s label, then as determined
(including without limitation as to size and placement) jointly
by FUSA and Luitpold/AR. The use of the Trademarks by FUSA shall
be expressly subject to subparagraph (c) below. FUSA
acknowledges that Venofer is a registered trademark of Vifor and
is licensed to Luitpold/AR, and is subject to the sublicense
granted herein, including all marking requirements.
(b) FUSA undertakes to use the Trademarks only in respect
of the Iron Products purchased from Luitpold/AR [*] and only for
the Field within the Territory.
10
(c) Whenever FUSA uses the Trademarks in advertising or in
any other manner in connection with the Iron Products, FUSA
shall clearly indicate that the Trademarks are owned or licensed
to FUSA by Vifor and Luitpold/AR. When using the Trademarks
under this Agreement, FUSA shall comply with all Applicable Laws
pertaining to the Trademarks in force at any time in the
Territory. During the Term of this Agreement, FUSA shall provide
Luitpold/AR with copies of such foregoing material once each
Calendar Quarter, as requested by Luitpold/AR for approval of
the use of the Trademarks by FUSA. FUSA shall promptly take any
and all actions directed by Luitpold/AR with respect to
FUSA’s use of the Trademarks that are reasonably designed
to ensure compliance with the provisions of this
Section 3.03.
3.04 Trademark Infringement by Third
Parties. If either Party becomes aware that a
Third Party is infringing any Trademark used in connection with
the Iron Products, such Party shall give written notice to the
other Party describing in detail the nature of such
infringement. If Vifor
and/or
Luitpold/AR elect not to pursue such infringement, FUSA shall
have the right, but not the obligation, to enforce any such
Trademarks against such Third Party infringer to the extent
deemed necessary or appropriate by FUSA or its Affiliates, in
their reasonable discretion, and to settle or compromise any
such possible infringement by taking such action as FUSA or its
Affiliates may determine; provided, however, that FUSA shall not
settle any such potential infringement in a manner that has a
Material Adverse Effect on the rights granted by Luitpold/AR to
FUSA hereunder, except with Luitpold/AR’s and Vifor’s
prior written consent (which consent shall not be unreasonably
withheld). Luitpold/AR shall provide FUSA all reasonable
assistance (including, without limitation, making documents and
records available for review and copying, and making persons
within its control available for pertinent testimony), at
FUSA’s expense, in such enforcement.
3.05 Rebates. FUSA shall calculate,
process, administer and be financially responsible for all
commercial rebates and for rebates required on government claims
pursuant to any government rebate programs with respect to all
Iron Products sold for the Field in the Territory and labeled
with FUSA’s NDC. Luitpold/AR shall calculate, process,
administer and be financially responsible for all commercial
rebates and for rebates required on government claims pursuant
to any government rebate programs with respect to all Iron
Products sold outside of the Field or the Territory and labeled
with Luitpold/AR’s NDC.
3.06 Medicare/Medicaid Information. With
respect to any of the Iron Products sold in the Territory by a
Party after the Effective Date which bears such Party’s (or
any of its Affiliates) NDC number, such Party shall be solely
responsible for complying with its Medicare and Medicaid price
reporting obligations, including but not limited to reporting
the following information:) (a) on a monthly and quarterly
basis, the “average manufacturer price” (as defined
under the Social Security Act, 42 U.S.C.
1396r-9-8(K)(1),
and implementing regulations) for each of such Products,
identified by NDC number and (b) on a quarterly basis,
(i) the “best price” (as defined under the Social
Security Act, 42 U.S.C.
1396r-8(c)(1)C),
and implementing regulations), (ii) the aggregate dollar
amount of customary prompt payment discounts (as defined in
42 C.F.R. 447.510(a)(3)), (iii) the aggregate dollar
amount of nominally price sales amount (as defined in
42 C.F.R. 447.504(a)(4)), and (iv) the “average
sales price” (as defined under the Social Security Act,
42 U.S.C.
1395w-3a and
implementing regulations) for each of such Products, identified
by NDC number.
3.07 Other Federal and State Government Pricing
Programs.
(a) With respect to any of the Iron Products sold in the
Territory by a Party after the Effective Date which bears such
Party’s (or any of its Affiliates) NDC number, such Party
shall be solely responsible for complying with its obligations
(a) under 42 U.S.C. 256(b) (Public Health Service Act
340B) to sell each of such Products, identified by NDC number,
at discounted prices to eligible covered entities and
(b) under 38 U.S.C. 8126 to place each of such
Products, identified by NDC number, on the Federal Supply
Schedule and to report “non-federal average manufacturers
price” and “federal ceiling price” for each of
such Products to the National Acquisition Center.
(b) With respect to any of the Iron Products sold in the
Territory by a Party after the Effective Date which bears such
Party’s (or any of its Affiliates) NDC number, such Party
shall be solely responsible for negotiating, implementing, and
paying rebates under any voluntary supplemental rebate
agreements with state Medicaid programs or supplemental rebate
agreements with other state pharmaceutical assistance programs
11
(c) Promptly after the Effective Date, the Parties shall
jointly notify (i) applicable Medicare and Medicaid groups
at the Centers for Medicare and Medicaid Services, (ii) the
Office of Pharmacy Affairs at the Health Resources and Services
Administration, (iii) the United States Department of
Defense, (iv) the Veteran’s Affairs National
Acquisition Center, and (v) any State supplement rebate
programs in which Luitpold/AR currently participates or in which
FUSA intends to participate (the foregoing being hereinafter
collectively referred to as the “Federal and State
Programs”) of FUSA’s rights with respect to the Iron
Products for the Field in the Territory, and that FUSA intends
to and shall establish its own contractual relationships with
the Federal and State Programs as soon as commercially
reasonable.
3.08 Shipping and Distribution
Obligations.
(a) [*]
(b) [*]
Luitpold/AR will transfer to the FUSA Warehouse Iron Products
according to FUSA’s purchase orders, FUSA’s requested
delivery dates and other instructions from FUSA. The title and
risk shall transfer to FUSA upon shipment to the FUSA Warehouse.
The expenses of shipment, including freight insurance, shall be
borne as provided in
Exhibit 1.01-A.
The Parties agree and confirm that no Iron Products will be
shipped, sold, distributed or released prior to receipt of a
Certificate of Analysis and Compliance for said Iron Products as
required under Section 6.02.
(c) Commencing on the Effective Date and thereafter, FUSA
shall: (i) invoice and xxxx the purchasers of the Iron
Products for the Field in the Territory from FUSA;
(ii) confirm all orders placed with FUSA in accordance with
FUSA’s customary practices; and (iii) collect the
receivables resulting from FUSA’s sales of Iron Products
for the Field in the Territory.
(d) [*]
3.09 Pricing. From and after the
Effective Date, FUSA shall have the sole authority to determine
the prices of Iron Products sold by it during the Term and to
establish its own pricing policy for the Iron Products for the
Field within the Territory, including price increases or
decreases and the timing thereof as determined by FUSA.
3.10 Sales Force and Support.
(a) FUSA shall be solely responsible for the costs and
expenses of establishing and maintaining its sales force and
marketing functions for the Iron Products for the Field in the
Territory, and for conducting its other activities under this
Agreement, and, subject to the foregoing, shall have the sole
authority to control its sales force and direct the activities
of its sales force. [*]
(b) Within forty-five (45) days after the execution of
this Agreement, Luitpold/AR shall provide all members of
FUSA’s sales force (including management and
representatives) personnel, a one-time Product-related training
program conducted by Luitpold/AR. Luitpold/AR will be
responsible for the costs and expenses of its personnel related
to such training. In connection with Luitpold/AR’s
Product-related training program, Luitpold/AR shall, to the
extent available and in Luitpold/AR’s possession provide
FUSA with one copy of any training materials previously used in
training sales representatives in the Territory on the Product.
FUSA shall have the sole responsibility for preparing additional
and new materials for the Iron Product for sales training
purposes as needed. Ongoing training of FUSA’s sales
representatives and other personnel shall be the responsibility
of FUSA at its cost and expense. The contents of any future
additional training provided by FUSA that relates to the Iron
Products shall be developed and coordinated by FUSA, and FUSA
shall be solely responsible for training its sales force
(including management and sales representatives) personnel, if
any, with regard to Applicable Laws and directing such sales
force and sales force personnel to be compliant with Applicable
Laws.
(c) Luitpold/AR shall use Commercially Reasonable Efforts
to maintain its relationships with major customers for the Iron
Products until such customers have been transitioned to FUSA,
and during the first two (2) Contract Years, Luitpold/AR
shall at FUSA’s request provide commercially reasonable
support and cooperation to FUSA’s efforts to maintain the
relationships with such major customers for the supply of Iron
Products.
12
3.11 FUSA shall provide Luitpold/AR with a monthly report
for each Iron Product on sales quantities, stock levels of each
Iron Product, and if applicable of each Substance and marketing
activities, which shall be in a format shown in
Exhibit 3.11 attached hereto. FUSA shall provide
Luitpold/AR on an annual basis every January a copy of
FUSA’s report concerning the development of the market and
the competitive activity in the Field in the Territory, together
with any other reasonable information Luitpold/AR may be
interested in for the better management and development of the
Product [*].
ARTICLE 4
LUITPOLD/AR
RESPONSIBILITIES
4.01 Supply of Iron Products and API.
(a) Luitpold/AR shall manufacture exclusively on behalf of
FUSA, pursuant to Articles 5 and 6 hereof and subject to
the other terms and conditions as set forth in this Agreement,
FUSA’s requirements of Iron Products for marketing, sale
and distribution by FUSA for the Field in the Territory during
the Term. Luitpold/AR’s obligation to manufacture Iron
Products for FUSA under this Agreement shall terminate at such
time as (i) [*], (ii) [*], (iii) [*].
(b) [*]
4.02 Retention of Product Registrations.
(a) During the Term, Luitpold/AR shall have sole
responsibility for maintaining, and shall maintain, the Product
Registrations in the Territory at its expense, including without
limitation filing NDA Annual Reports and paying all product fees
and establishment fees associated with the Product Registrations
in the Territory; [*]. Luitpold/AR shall keep FUSA informed on a
timely basis as to any developments that would have a Material
Adverse Effect on a Product Registration. FUSA shall cooperate
with Luitpold/AR with respect to obtaining and maintaining the
Product Registrations, and shall execute, acknowledge and
deliver such further instruments at Luitpold/AR’s request
and expense, and use Commercially Reasonable Efforts to do all
such other acts, as promptly as possible, which may be necessary
or appropriate to obtain and maintain the Product Registrations
in the Territory. FUSA shall, on a timely basis, provide to
Luitpold/AR all information that FUSA has from time to time
during the Term for each of the Iron Products that is reasonably
necessary and relevant to Luitpold/AR’s obligations
hereunder to fulfill such Iron Product Registration maintenance
requirements. [*], FUSA and Luitpold/AR shall have joint
decision-making authority in every case on whether and how to
supplement, amend or otherwise alter the Product Registrations
and any other issues in connection with such Product
Registrations (including, but not limited to, decisions, subject
to Section 6.07, to recall any Iron Product) and on whether
and how to communicate with the FDA and other applicable
governmental agencies or authorities in connection with such
Product Registrations related to the Iron Products within the
Field for the Territory.
(b) During the Term, FUSA and Luitpold/AR shall each make
its facilities available at reasonable times during business
hours for inspection by representatives of Governmental
Authorities. FUSA and Luitpold/AR each shall notify the other
within twenty-four (24) hours (or, if such twenty-four
(24) hour period ends on a day that is not a Business Day,
then prior to noon on the next following Business Day) of
receipt, and provide a copy thereof, of any notice of any FDA or
other Governmental Authority inspection, investigation or other
inquiry, or other material governmental notice or communication,
relating to the manufacture, sale, marketing, promotion,
distribution, or use of Iron Products in the Field within the
Territory. FUSA and Luitpold/AR shall cooperate with each other
during any such inspection, investigation or other inquiry. FUSA
and Luitpold/AR shall discuss any response to observations or
notifications received in connection with any such inspection,
investigation or other inquiry and each shall give the other an
opportunity to comment upon any proposed response before it is
made and in particular Luitpold/AR shall notify FUSA of any
issues specific to the manufacture of Iron Products that
(A) could reasonably be expected to have a Material Adverse
Effect on FUSA’s ability to market, sell or distribute Iron
Products in the Field in the Territory, and (B) have
regulatory implications that could reasonably be expected to
have a Material Adverse Effect on FUSA’s ability to
distribute Iron Products in the Field within the Territory. FUSA
and Luitpold/AR will provide each other with copies of all
correspondence received by it from, or filed by it with, any
federal, state or local regulatory authority to the extent
pertaining to each of the Iron Products or its, manufacturing,
labeling, packaging, distribution, promotion, advertisement,
marketing or sale in the Field within the Territory. In
addition, Luitpold/AR will provide FUSA copies of all material
correspondence received by Luitpold/AR from, or filed by
Luitpold/AR
13
with, any federal, state or local regulatory authority to the
extent such correspondence or filing could reasonably have an
affect on FUSA’s ability to perform its obligations under
this Agreement. [*]
(c) During the Term, Luitpold/AR shall order from time to
time, at FUSA’s request, Product Packaging Materials in
sufficient quantities to permit the packaging of Iron Products
ordered by FUSA from time to time hereunder. Luitpold/AR shall
not be liable for any Product Packaging Material to the extent
that such Product Packaging Material contains the
specifications, instructions, directions
and/or
warnings, and all such packaging labels, package inserts and
other packaging materials, relating to the Product
Specifications, instructions, directions
and/or
warnings (or any changes or additions thereto) shall be the sole
responsibility and under the sole authority of FUSA subject to
the provisions of Section 3.02. Luitpold/AR shall not at
any time do, and neither shall Luitpold/AR permit its agents or
representatives to do, any act in violation of the Product
Registration for the Iron Products in the Field within the
Territory. In the event that in Luitpold/AR’s reasonable
opinion any other or further filings are required to be made
with or approvals required to be obtained from applicable
regulatory authorities in order to change or supplement the
package inserts and labeling, Luitpold/AR shall promptly advise
FUSA in writing of any changes or supplements and shall have the
responsibility for and authority to effect such filings and the
sole right and discretion on how to effect such changes at
Luitpold/AR’s expense. [*], the Parties acknowledge and
agree that all Iron Products sold after the Effective Date in
the Field within the Territory will be sold under a FUSA label,
and, as soon as reasonably practicable following the Effective
Date, all Iron Products in the Field within the Territory will
be identified as FUSA products with such Iron Products
identified as being manufactured for and distributed by FUSA
pursuant to the licenses granted from Vifor and Luitpold/AR
pursuant to this Agreement. In the event FUSA requests a change
in labeling that would make any of the Product Packaging
Materials obsolete, Luitpold/AR will, at FUSA’s option,
either continue to use the obsolete materials until depleted or
be reimbursed by FUSA for the cost of the obsolete materials.
4.03 Prosecution and Maintenance of Trademarks and
Patents.
(a) During the Term, FUSA shall be permitted to register
and maintain, or cause to be registered and maintained, at its
cost and expense, the FUSA Trademarks for the Field within
Territory.
(b) Notwithstanding any other provision of this Agreement
to the contrary, Vifor and Luitpold/AR shall, at their sole cost
and expense, prosecute, maintain, enforce, defend and not
abandon any Licensed Technology owned, controlled or licensed to
or from Vifor and Luitpold/AR covering the manufacture of Iron
Products. Neither Vifor nor Luitpold/AR shall abandon any
Licensed Technology owned, controlled or licensed to or from
Vifor or Luitpold/AR with respect to the Iron Products in the
Territory without giving sixty (60) days prior written
notice to FUSA and permitting FUSA at its sole and exclusive
expense to take reasonable and customary actions to maintain or
preserve such Licensed Technology.
(c) During the Term, Luitpold/AR shall at its sole cost and
expense, maintain and enforce any contract entered into by
Luitpold/AR covering the license, supply or access to or of any
Licensed Technology, API, compounds, intermediates,
biomaterials, packaging components, containers and other
materials used in the manufacture of any Iron Product.
ARTICLE 5
MANUFACTURE
OF IRON PRODUCTS
5.01 Manufacture of Iron Products.
(a) Manufacture of Products. During the
Term and subject to the terms and conditions of this Agreement,
Luitpold/AR agrees to manufacture and deliver to FUSA, and FUSA
agrees to order and receive from Luitpold/AR Iron Products, in
dosage form and packaged in the manner described in
Exhibit 5.01(a) hereto, [*]. Iron Products manufactured by
Luitpold/AR for FUSA shall use API purchased by Luitpold/AR from
Vifor on behalf of FUSA. Vifor shall deliver such API to
Luitpold/AR on behalf of FUSA and Vifor shall be responsible for
all costs of freight and insurance to ship said API to
Luitpold/AR. Iron Products delivered by Luitpold/AR under this
Agreement shall have a remaining shelf life of no less than the
expiration dating of the applicable Iron Product minus three
(3) months as of the delivery date to FUSA, unless
otherwise agreed to by the Parties.
14
Notwithstanding anything to the contrary in this Agreement,
FUSA’s obligation to pay [*] shall be subject to adjustment
or termination as follows:
(i) [*]. Should the Parties fail to reach agreement with
respect to such adjustment, FUSA shall be entitled to terminate
this Agreement upon the delivery of written notice to
Luitpold/AR in accordance with Section 12.03 hereof.
(ii) [*]. Should the Parties fail to reach agreement with
respect to such adjustment, FUSA shall be entitled to terminate
this Agreement upon the delivery of written notice to
Luitpold/AR in accordance with Section 12.03 hereof if the
recall results from an issue related to the fundamental safety
of the Iron Product and/or if the FDA requests or orders that
marketing of the Iron Product cease.
(iii) [*]
(iv) [*]
(v) [*]
(vi) [*]
(b) [*]
(c) [*]
5.02 Purchase Order Terms. From and after
the Transition Period, each Purchase Order shall be for a full
Lot or multiples thereof of Iron Products and specify the date
the Lot(s) should be deliverable; provided, that not more often
than once per Contract Year, FUSA may order Iron Products in
less than a full Lot or multiple thereof.
5.03 Title and Risk of Loss. Luitpold/AR
shall maintain all FUSA Iron Products in Luitpold/AR’s
warehouse in compliance with all Applicable Laws, including FDA
regulations. Title to and risk of loss with respect to Iron
Products shall pass from Luitpold/AR to FUSA upon shipment of
the Product to FUSA at the FUSA Warehouse. [*]
5.04 Acceptance and Rejection. If any
Iron Products supplied to FUSA by or on behalf of Luitpold/AR
fail to conform to the applicable Product Specifications based
on an inspection by FUSA of such Iron Product and packaging and
shipping materials and components, including results of the
applicable quality review and approval, including review of the
batch record, Lot Documentation Package and other manufacturing
documentation, then FUSA shall have the right to reject such
non-conforming Iron Products. FUSA shall give written notice to
Luitpold/AR of its rejection hereunder within twenty
(20) days following FUSA’s receipt of the same or as
soon thereafter as is reasonably practicable, specifying the
grounds for such rejection. Such rejection notice shall be
accompanied by a report (including a product sample from the
batch analyzed) of the analysis of the allegedly non-conforming
Iron Products that shall have been made using methods generally
approved within the industry. Luitpold/AR shall replace any such
rejected Iron Products with conforming Iron Products as soon as
practicable after receipt of notice of rejection thereof, and in
any event will do so within forty-five (45) days after
receipt of notice of rejection thereof at no cost to FUSA.
Luitpold/AR shall also make arrangements with FUSA for the
return or destruction, at FUSA’s option, of any Iron
Products rejected by FUSA. All such return shipping charges or
costs of destruction shall be paid by Luitpold/AR. In the event
that FUSA has paid for such rejected Iron Products, and such
Iron Products have not been satisfactorily replaced, Luitpold/AR
shall promptly refund or, at FUSA’s option, [*] or dispute
such claim and, if necessary, initiate a dispute resolution in
accordance with the following paragraph.
In the event of a conflict regarding whether Iron Products are
non-conforming, which Luitpold/AR and FUSA are unable to
resolve, a sample of such Iron Products, together with mutually
agreed upon questions, shall be submitted by FUSA and
Luitpold/AR to an independent laboratory reasonably acceptable
to both Parties for testing against the applicable specification
and the test results obtained by such laboratory shall be final
and binding upon the Parties. The fees and expenses for such
laboratory testing, and all additional shipping and
transportation costs incurred as a result of the dispute, shall
be borne entirely by the Party against whom such
laboratory’s findings are made. In the event that the test
results indicate that the Iron Products in question do not
conform to the applicable
15
specifications, without limiting FUSA’s remedies hereunder,
Luitpold/AR shall replace such Iron Products with conforming
Iron Products in accordance with this Section 5.04, and
that shall be FUSA’s sole remedy.
[*]
5.05 [*]
5.06 Right of Offset. The Parties agree
that in the event that any obligation on the part of Luitpold/AR
to FUSA under the terms of this Agreement is not fulfilled by
Luitpold/AR when such obligation is due, then in such event and
as long as such obligation remains unfulfilled, FUSA shall be
entitled to offset any unpaid amounts which may otherwise be due
to Luitpold/AR from FUSA and Luitpold/AR shall be entitled to
offset any unpaid amounts which may otherwise be due to Vifor
from Luitpold/AR proportionally. [*]
5.07 [*]
ARTICLE 6
MANUFACTURE
OF IRON PRODUCTS; CERTAIN REGULATORY MATTERS; COMMUNICATION
6.01 Manufacture of Iron
Products. (a) Luitpold/AR shall manufacture
for and deliver to FUSA Iron Products that (i) were made
from API that conforms to applicable API Specifications,
(ii) were prepared and handled in compliance with
applicable cGMPs, Applicable Laws, Licensed Technology, the
Manufacturing Documentation, master batch record and any other
procedures or documents agreed upon by the Parties, in writing,
(iii) conform with applicable Product Specifications and
Product Registrations, (iv) are not adulterated or
misbranded within the meaning of the U.S. Food, Drug and
Cosmetic Act or similar provisions of any Applicable Laws,
(v) are packaged and shipped in accordance with the
applicable Packaging Specifications, and (vi) include a Lot
Documentation Package. The API Specifications, Product
Specifications and Packaging Specifications for Products are as
set forth on the attached Exhibit 6.01, and as may be
amended from time to time based on changes in the U.S.P.,
regulatory approvals or changes to improve quality. Luitpold/AR
covenants and agrees to use its Commercially Reasonable Efforts
to supply FUSA’s forecasted requirements of Iron Products.
At such time as the Parties [*], Luitpold/AR’s obligation
to supply Iron Products under this Section 6.01 shall
terminate. [*], Luitpold/AR shall ensure that, and Vifor agrees
that, it shall supply a sufficient quantity of the API as is
necessary to carry out Luitpold/AR’s obligations hereunder
to enable Luitpold/AR [*] to manufacture the Iron Products
ordered for FUSA. Vifor will ship to Luitpold/AR [*], the API
once released by Vifor.
6.02 Certificate of Analysis and
Compliance. Luitpold/AR shall conduct quality
assurance tests on the Iron Products prior to shipment to in
accordance with FDA requirements, shall furnish upon FUSA’s
request and at FUSA’s cost samples to FUSA, and shall
maintain appropriate documentation of each Lot included in the
shipment in accordance with all applicable U.S. laws and
regulations, including without limitation, the Lot Documentation
Package. In addition, Luitpold/AR shall furnish FUSA along with
the first shipment of Products [*], material safety data sheets
containing the relevant safety and health information, and such
other information as FUSA shall reasonably request in connection
therewith.
6.03 Safety Data Exchange. Each of
Luitpold/AR and FUSA agree to notify each other concerning
possible Serious Adverse Events, possible Adverse Events that
are not Serious Adverse Events and possible pregnancy exposures
related to the Iron Products within the respective time periods,
and in accordance with the procedures set forth on
Exhibit 6.03.
6.04 [Reserved.]
6.05 Product Recall. If either Vifor,
Luitpold/AR or FUSA obtains information that any of the Iron
Products or any portion thereof is alleged or proven not to
conform with the labeling or the Product Registration for such
Iron Products for the Field within the Territory, it shall
notify the other Party immediately and both Parties shall
cooperate fully regarding the investigation and disposition of
any such matter. Vifor, Luitpold/AR and FUSA shall each maintain
such traceability records as are sufficient and as may be
necessary to permit a recall or field correction of any Iron
Products. In the event (a) any applicable federal or state
regulatory authority in the Territory should issue a request,
directive or order that any of the Iron Products be recalled, or
(b) a court of competent
16
jurisdiction orders such a recall, or (c) FUSA or
Luitpold/AR determines that any of the Iron Products already in
interstate commerce in the Field within the Territory present a
risk of injury or gross deception or is otherwise defective,
misbranded
and/or
adulterated and that recall of such Iron Products is appropriate
(any such event described in (a), (b) or (c), a
“Recall”), each Party shall give telephonic notice (to
be confirmed in writing) to the other within twenty-four
(24) hours after becoming aware of an event described in
(a) or (b), or after making the determination described in
(c). Each Party shall have sole responsibility for determining
all corrective action to be taken with respect to its NDC
labeled Iron Product and to implement the Recall, but shall
confer with the other Party and keep such other Party informed
on a regular basis of its progress in planning and implementing
the Recall. The Parties will use Commercially Reasonable Efforts
to cooperate with and assist each other in connection therewith
as may be requested. Each Party shall be responsible for all its
expenses of effecting any such Recall (including any
out-of-pocket expenses incurred by the other Party in connection
with such cooperation), except to the extent such Recall is
attributable to any negligence on the part of the other Party or
any breach by a Party of its obligations under this Agreement,
in which event the Party at fault or in breach will reimburse
the other Party for its reasonable costs and expenses incurred
that are so attributable to such negligence or breach. In the
event of a Vifor or Luitpold/AR negligence or breach, Vifor
and/or
Luitpold/AR shall provide to FUSA replacement API or Iron
Products (as applicable) for any recalled Iron Products at
Luitpold/AR’s sole expense, except to the extent that such
Recall is attributable to any negligence on the part of FUSA or
any breach by FUSA of its obligations under this Agreement or
any other agreement then in force and effect between the Parties.
6.06 Product Complaints.
(a) FUSA and Luitpold/AR each shall maintain complaint
files for Iron Products in accordance with cGMP’s. FUSA and
Luitpold/AR each shall record any complaints received with
respect to the Iron Products substantially in the format
attached hereto as Exhibit 6.06. The Parties agree that
they shall provide responses to each complainant within thirty
(30) days of each complaint.
(b) Luitpold/AR shall promptly provide to FUSA written
notice (using the form specified in Section 6.06(a) above)
of any complaints (and will provide copies of any written
complaints) received by Luitpold/AR with respect to any Iron
Product. FUSA shall promptly provide to Luitpold/AR written
notice (substantially in the format specified in
Section 6.06(a) above) of any complaints (and will provide
copies of any written complaints) received by FUSA with respect
to any Product. FUSA shall have responsibility for responding to
all complaints, and for promptly providing Luitpold/AR with a
copy of any responses to complaints, relating to Iron Products
labeled with FUSA’s NDC, including but not limited to
complaints from competitors regarding promotional activities by
FUSA. Luitpold/AR shall have responsibility for responding to
all complaints, and for promptly providing FUSA with a copy of
any responses to complaints, relating to Iron Products labeled
with Luitpold/AR’s NDC, including but not limited to
complaints from competitors regarding promotional activities by
Luitpold/AR. The Parties agree to cooperate with each other to
provide any information the other Party, in good faith, deems
necessary to respond to such complaints.
6.07 Additional Covenants of FUSA. FUSA
shall (a) not give any Third Party purchaser of the
Products any guarantee or warranty on behalf of Luitpold/AR,
(b) follow up and investigate customer and tampering
complaints related to Iron Products labeled with FUSA’s
NDC, and keep Luitpold/AR informed, as appropriate, as to the
nature, status and resolution of such complaints, and
(c) upon delivery by Luitpold/AR to FUSA of any Iron
Product, handle, use and store the Iron Products in compliance
with cGMP’s and Applicable Laws.
6.08 Compliance with Applicable
Law. Luitpold/AR represents and warrants that all
Lot Documentation Packages and other documentation maintained by
it under this Agreement will be prepared fully in accordance
with all Applicable Laws and in a good scientific manner, and
will otherwise be accurate and complete in all material
respects. Each Party shall use Commercially Reasonable Efforts
to maintain in full force and effect all necessary licenses,
permits and other authorizations required by Applicable Law to
carry out its duties and obligations under this Agreement. Each
Party shall comply with all Applicable Laws, provided, that FUSA
shall be solely responsible for compliance with those Applicable
Laws pertaining to the marketing, promotion, advertisement, sale
and distribution of the Iron Products in the Field within the
Territory and labeled with FUSA’s NDC, including, without
limitation, those Applicable Laws that apply to documentation
and records retention pertaining to the distribution and use of
Iron Products within the Territory, and Luitpold/AR shall be
solely responsible for compliance with those
17
Applicable Laws pertaining to the manufacturing and supply of
the Iron Products (including, without limitation, those
Applicable Laws that apply to documentation and records
retention pertaining to the manufacture of Iron Products within
the Territory). Without limiting the generality of the
foregoing, FUSA shall not promote the Iron Products for any
indications not contained in the Product Registration or in any
manner in conflict with the approved labeling and all Applicable
Laws. FUSA shall store and distribute the Iron Products and
trade forms in compliance with all Applicable Laws. Each Party
will cooperate with the other to provide such letters,
documentation and other information on a timely basis as the
other Party may reasonably require to fulfill its reporting and
other obligations under Applicable Laws to applicable
Governmental Authorities. Except for such amounts as are
expressly required to be paid by a Party to the other under this
Agreement, each Party shall be solely responsible for any costs
incurred by it to comply with its obligations under Applicable
Laws.
6.09 Reasonable Cooperation. Luitpold/AR
and FUSA each hereby agrees to use Commercially Reasonable
Efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary or proper to make
effective the transactions contemplated by this Agreement,
including such actions as may be reasonably necessary to obtain
approvals and consents of Governmental Authorities (including,
without limitation, all NDA notifications to the FDA identifying
FUSA as a distributor of the Iron Products in the Field for the
Territory).
6.10 Compliance Audits. From time to time
as FUSA may elect during the Term (but no more than twice during
the first Annual Period of the term of this Agreement and not
more than once during each Annual Period thereafter), during
normal business hours and upon reasonable advance notice from
FUSA (but not less than ten (10) Business Days’
notice), Luitpold/AR shall permit duly authorized
representatives of FUSA to review and inspect, on the premises
of Luitpold/AR each manufacturing facility for Iron Products and
on the premises of Luitpold/AR where such records and inventory
are kept, inventory of Iron Products, Manufacturing
Documentation and Luitpold/AR’s quality control records
relating to the manufacture and storage of Iron Products to
ensure compliance with cGMP’s, quality control standards
and the packaging and labeling for Iron Products; and with
applicable terms of this Agreement pertaining to the use of the
Trademarks. From time to time as Luitpold/AR may elect during
the Term (but no more than twice during the first Annual Period
of the term of this Agreement and not more than once during each
Annual Period thereafter), during normal business hours and upon
reasonable advance notice from Luitpold/AR (but not less than
ten (10) Business Days’ notice), FUSA shall permit
duly authorized representatives of Luitpold/AR to review and
inspect, on the premises of the FUSA Warehouse facility for Iron
Products and on the premises of FUSA where such records and
inventory are kept, inventory of the Products, to ensure
compliance with cGMP’s, quality control standards and the
packaging and labeling for Iron Products; and with applicable
terms of this Agreement pertaining to the use of the Trademarks.
6.11 [*]
(a) [*]
(b) [*]
(i) [*]
(ii) [*]
(iii) [*]
(iv) [*]
(v) [*]
(vi) [*]
(vii) [*]
(viii) [*]
(ix) [*]
(c) [*]
(d) [*]
18
(e) [*]
(f) [*]
(g) [*]
(h) [*]
(i) [*]
(j) [*]
(k) [*]
ARTICLE 7
REPRESENTATIONS,
WARRANTIES AND COVENANTS
7.01 Representations and Warranties of Both
Parties. Each Party hereby represents and
warrants to the other Party that, as of the Effective Date:
(a) Good Standing. Such Party is duly
organized, validly existing and in good standing under the
Applicable Laws of the state of its incorporation, is duly
qualified to transact the business in which it is engaged in
each jurisdiction where failure to be so qualified would have a
Material Adverse Effect upon its business as currently
conducted, and has full corporate power and authority to enter
into this Agreement and to carry out the provisions of this
Agreement.
(b) Power and Authority. Such Party has
the requisite power and authority and the legal right to enter
into this Agreement, and to perform its obligations hereunder,
and has taken all necessary corporate action on its part to
authorize the execution and delivery of the Agreement and the
performance of its obligations hereunder. All persons who have
executed this Agreement on behalf of such Party, or who will
execute on behalf of such Party any agreement or instrument
contemplated hereby, have been duly authorized to do so by all
necessary corporate action.
(c) Binding Obligation. This Agreement
has been duly executed and delivered on its behalf and (assuming
the due execution and delivery hereof by the other Party) each
such agreement is a legal and valid obligation binding upon it
and is enforceable in accordance with its terms, except that:
(i) such enforcement may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar
Applicable Laws now or hereafter in effect relating to creditors
rights generally, and
(ii) such enforcement may be limited by equitable
principles and Applicable Law.
7.02 Representations and Warranties of
Luitpold/AR. Luitpold/AR hereby represents and
warrants to FUSA that, as of the Effective Date:
(a) No Violation of Instruments or
Contracts. The execution and the delivery of this
Agreement and the consummation of the transactions contemplated
hereby will not:
(i) violate the Certificate of Incorporation or By-Laws of
any of the Luitpold/AR Entities;
(ii) [*] or, to the Knowledge of Luitpold/AR, any material
instrument, agreement, mortgage, judgment, order, award, or
decree specifically relating to the manufacturing, distribution
or sale of Iron Products to which any Luitpold/AR Entity is a
party or by which it is bound and which would have a Material
Adverse Effect upon the manufacture, distribution or sale of
Iron Products as currently conducted by such Luitpold/AR Entity
(it being understood that certain contracts pertaining to the
sale of Products to Third Parties may require the consent of
such Third Party for assignment of same to FUSA and that Vifor
shall have consented to this Agreement);
(iii) to the Knowledge of Luitpold/AR, require the
affirmative approval, consent, authorization or other order or
action of any court, Governmental Authority or regulatory body
or of any creditor of any of
19
the Luitpold/AR Entities, except for any
Xxxx-Xxxxx-Xxxxxx
filing required in connection with the Transfer.
(b) Compliance with Applicable Law. Each
Luitpold/AR Entity is, in compliance with all requirements of
Applicable Law within the Territory, except to the extent that
any noncompliance, individually or in the aggregate, would not
have a Material Adverse Effect on the conduct of the
manufacture, distribution or sale of the Iron Products as
currently conducted by such Luitpold/AR entity or the
transactions contemplated by this Agreement, including the
marketing, promotion, advertising, sale and distribution of the
Iron Products in the Field within the Territory by FUSA pursuant
to this Agreement, and would not have a Material Adverse Effect
on Luitpold/AR’s ability to perform its obligations under
this Agreement. Each Luitpold/AR entity represents and warrants
that it has not, and covenants that it will not, pay anything of
value to any government employee in connection with this
Agreement.
(c) Litigation and Claims. There is no
litigation, arbitration, claim, governmental or other
proceeding, or, to the Knowledge of Luitpold/AR, governmental
investigation pending or threatened in writing within the
Territory relating to the Iron Products (it being understood
that this sentence shall not constitute, and shall not be deemed
to constitute, a representation or warranty with respect to the
Trademarks), which, if adversely determined, would have a
Material Adverse Effect.
(d) [*]
(e) Regulatory Filings. Luitpold/AR has
provided FUSA with access to a complete copy of each of the
Product Registrations, including all material amendments and
supplements thereto, relating to the Product in the Territory.
Luitpold/AR is the lawful holder of all rights under each of the
Product Registrations. Luitpold/AR has complied in all material
respects with all Applicable Laws and regulations in connection
with the preparation and submission to the FDA of each of the
Product Registrations, and each of the Product Registrations has
been approved by the FDA.
(f) Licensed Technology.
(i) Luitpold/AR has a valid fully paid up assignable
license, the term of which license (including renewals the
exercise of which is entirely within the control of Luitpold/AR)
extends [*] after the Effective Date, and to the Knowledge of
Luitpold/AR, Vifor owns all, Licensed Technology and
Intellectual Property relating to the Iron Products;
(ii) Luitpold/AR’s license to the Licensed Technology
in the Territory is in full force and effect, has been duly
maintained, has not been cancelled, expired or abandoned as of
the Effective Date and has a term (including renewals the
exercise of which is entirely within the control of Luitpold/AR)
extending for at least twenty (20) years after the
Effective Date;
(iii) Luitpold/AR and Vifor has not and will not pursue any
actions in derogation of such rights or inconsistent with the
rights conferred by this Agreement;
(iv) Luitpold/AR and Vifor are unaware, as of the Effective
Date, of any challenges to or violation of such rights by a
Third Party; and
(v) to the Knowledge of Luitpold/AR, none of the Licensed
Technology infringes upon any Intellectual Property or trademark
of any other Third Party in the Territory. There is no action,
suit or proceeding pending or, to the Knowledge of Luitpold/AR
or Vifor that has been threatened in writing by any Third Party
in the Territory against Luitpold/AR, or an Affiliate of
Luitpold/AR, Vifor or an affiliate of Vifor, as the case may be,
which, if adversely determined, would have a Material Adverse
Effect upon the ability of Luitpold/AR, or an Affiliate of
Luitpold/AR, Vifor or an Affiliate of Vifor as the case may be,
to use the Licensed Technology in connection with the
manufacture, marketing, distribution or sale of the Iron
Products in the Territory as currently conducted by Luitpold/AR,
or a Luitpold/AR Affiliate, Vifor or an Affiliate of Vifor or to
fulfill their respective obligations pursuant to the terms of
this Agreement.
20
(g) Manufacturing
Documentation. Luitpold/AR holds a valid existing
license to use, and Vifor or its Affiliates is the owner of, the
Manufacturing Documentation.
(h) Luitpold/AR is not debarred or suspended under the FDA
Act and has not been charged with a violation of any laws or
regulations relating to the regulation of any drug product under
the FDA Act or any similar law or regulation in force in the
Territory.
7.03 Representations and Warranties of
Vifor. Vifor hereby represents and warrants to
FUSA that, as of the Effective Date:
(a) Vifor owns all of the Licensed Technology, Intellectual
Property and Manufacturing Documentation relating to the Iron
Products for use in the Field in the Territory, and to the
Knowledge of Vifor, as of the Effective Date, there has been no
challenge to Vifor’s ownership or infringement thereof by a
Third Party;
(b) Luitpold/AR’s license to the Licensed Technology
in the Territory is in full force and effect, has been duly
maintained, has not been cancelled, expired or abandoned as of
the Effective Date and has a term (including renewals the
exercise of which is entirely within the control of Luitpold/AR)
extending for at least twenty (20) years after the
Effective Date; and
(c) to the Knowledge of Vifor, none of the Licensed
Technology infringes upon any Intellectual Property or trademark
of any Third Party in the Territory, and there is no action,
suit or proceeding pending or, to the Knowledge of Vifor that
has been threatened in writing by any Third Party in the
Territory, which, if adversely determined, would have a Material
Adverse Effect upon the ability of Vifor or any of its
Affiliates, licensees or sublicensees to use the Licensed
Technology in connection with the manufacture, marketing,
distribution or sale of Iron Products in the Territory or upon
the ability of Vifor to fulfill its obligations under this
Agreement.
7.04 Luitpold/AR Covenants.
(a) All Iron Products delivered by Luitpold/AR to FUSA
pursuant to this Agreement shall be free and clear of all liens,
security interest or other encumbrances at the time of delivery.
(b) The Iron Products shipped by Luitpold/AR to FUSA shall,
at the time of shipment have been formulated, manufactured,
packaged, and stored by Luitpold/AR in conformity with cGMP and
conform with applicable specifications and shall not be
adulterated or misbranded within the meaning of the FDA Act and
shall not be articles that may not be introduced into interstate
commerce under Section 404 or 505 of the FDA Act.
(c) [*]
(d) Luitpold/AR will maintain throughout the Term all
permits, licenses, registrations, and other forms of
governmental authorizations and approvals required to be
obtained and maintained by Luitpold/AR in order for Luitpold/AR
to execute and deliver this Agreement and to perform its
obligations hereunder in accordance with all applicable laws and
shall otherwise perform its obligations hereunder in a manner
which complies in all material respects with applicable laws.
(e) Luitpold/AR will not knowingly, after using reasonable
efforts, use in any capacity the services of any Person debarred
or suspended under the FDA Act.
(f) Between the execution of this Agreement and the
Effective Date, Luitpold/AR shall continue to manufacture,
distribute and sell Products in the ordinary course of its
business and shall not take any action to materially increase
the quantity of Products in its distribution channels in the
Field in the Territory or terminate or make any material change
in its contractual or commercial arrangements with any of its
distributors or customers of Products in the Field in the
Territory.
(g) Luitpold/AR will continue to use Commercially
Reasonable Efforts to prosecute the citizen’s petitions
previously filed by Luitpold/AR relating to Iron Products.
7.05 Vifor Covenants.
(a) [*]. All API delivered by Vifor to Luitpold/AR on
behalf of FUSA pursuant to this Agreement shall be free and
clear of all liens, security interest or other encumbrances at
the time of delivery. [*]
21
(b) The API shipped by Vifor to Luitpold/AR on behalf of
FUSA shall, at the time of shipment have been formulated,
manufactured, packaged, and stored by Vifor in conformity with
cGMP and conform with applicable specifications and shall not be
adulterated or misbranded within the meaning of the FDA Act and
shall not be articles that may not be introduced into interstate
commerce under Section 404 or 505 of the FDA Act.
(c) Vifor will maintain throughout the Term all permits,
licenses, registrations, and other forms of governmental
authorizations and approvals required to be obtained and
maintained by Vifor in order for Vifor to execute and deliver
this Agreement and to perform its obligations hereunder in
accordance with all applicable laws and shall otherwise perform
its obligations hereunder in a manner which complies in all
material respects with applicable laws.
(d) Vifor will not knowingly, after using reasonable
efforts, use in any capacity the services of any Person debarred
or suspended under the FDA Act.
(e) Vifor will not pursue any actions in derogation of the
rights conferred by this Agreement.
(f) Vifor will only supply API manufactured by it at its
current facility in St. Gallen, Switzerland. Should Vifor wish
to use another facility to manufacture the substance, it shall
notify Luitpold/AR (or FUSA if appropriate) and Luitpold/AR and
Vifor will cooperate to obtain approval of the FDA for the
alternate site with Vifor to bear all expense of obtaining such
approval. Vifor agrees it will not switch the manufacturing site
prior to Luitpold/AR having obtained approval for such change
and will not modify the DMF without notice to and approval by
Luitpold/AR and if necessary FDA.
(g) [*]
7.06 FUSA Covenants.
(a) FUSA will not knowingly, after reasonable efforts, use
in any capacity the services of a Person debarred or suspended
by FDA.
(b) FUSA will comply with all Applicable Laws in all
activities related to the rights granted hereunder.
(c) FUSA will not manufacture, cause to have contract
manufactured or distribute any pharmaceutical products indicated
for the prevention
and/or
treatment of iron deficiency anemia in the Field in the
Territory other than Iron Products; provided, however, that
nothing in this Agreement shall operate to restrict the products
that FUSA or its Affiliates may include in any formulary for use
by physicians or that FUSA or its Affiliates may purchase and
dispense in the provision of services in the Field.
7.07 [*]
7.08 No Reliance by Third Parties. The
representations, warranties and covenants of a Party set forth
in this Agreement are intended for the sole and exclusive
benefit of the Parties hereto, and may not be relied upon by any
Third Party.
ARTICLE 8
INDEMNIFICATION
AND INSURANCE
8.01 Luitpold/AR Indemnity. Luitpold/AR
shall defend, indemnify and hold FUSA, its Affiliates, and its
and their respective shareholders, employees, agents, officers,
and directors (each a “FUSA Party”) harmless from and
against any and all losses, liabilities, damages, fees
(including, until such time as Luitpold/AR has notified FUSA in
writing that it will assume control of a given FUSA Claim (as
defined below), reasonable attorneys fees and costs pertaining
to such FUSA Claim), and expenses paid or payable by a FUSA
Party and that result from or arise in connection with a claim,
suit or other proceeding made or brought against any FUSA Party
(a “FUSA Claim”) arising out of, in connections with,
related to or based on:
(a) the breach of any obligation, covenant, agreement,
representation or warranty of Luitpold/AR contained in this
Agreement;
(b) the manufacturing, distribution, marketing,
advertisement, promotion or sale of any of Iron Products by
Luitpold/AR, its Affiliates or any Third Party, and any use of
any of Iron Products (including without
22
limitation Claims based on or relating to product liability),
prior to the Effective Date or following the termination or
expiration of this Agreement;
(c) any manufacture, distribution, marketing,
advertisement, promotion or sale of Iron Products, by
Luitpold/AR, any of its Affiliates or any Third Party with which
Luitpold/AR has entered into an agreement to manufacture,
distribute, market, advertise, promote or sell Iron Products,
outside the Field within the Territory, outside the Territory or
any use outside the Territory of any such Iron Products that
were sold by Luitpold/AR, any of its Affiliates or any Third
Party with which Luitpold/AR has entered into an agreement to
manufacture, distribute, market, advertise, promote or sell Iron
Products, outside the Field within the Territory or outside the
Territory (including without limitation Claims based on or
relating to product liability), whether sold by Luitpold/AR, its
Affiliates or any Third Party with which Luitpold/AR has entered
into an agreement to manufacture, distribute, market, advertise,
promote or sell Iron Products, prior to, during or following the
Effective Date;
(d) infringement of a Third Party’s patent rights,
trademarks or other intellectual property rights by reason of
FUSA’s exercise of any of the rights granted by Luitpold/AR
to FUSA in this Agreement, including the right to manufacture
(or have manufactured), distribute, market, advertise, promote
or sell Iron Products under this Agreement and the sale by FUSA
of Iron Products under the Licensed Technology, all in
accordance with the provisions of this Agreement;
(e) the manufacture, labeling or packaging of Iron Products
by Luitpold/AR, its Affiliates or any Third Party, and any use
of Iron Products (including without limitation Claims based on
or relating to product liability), whether prior to, during or
after, the Effective Date; or
(f) negligence or willful misconduct on the part of
Luitpold/AR, its Affiliates or any Third Party in the
performance of Luitpold/AR’s obligations under the terms of
this Agreement; provided, however, that Luitpold/AR shall not be
obligated to indemnify a FUSA Party for any loss, liability,
damages, fees or expenses incurred by such FUSA Party to the
extent attributable solely to a breach by FUSA of any
obligation, covenant, agreement, representation or warranty of
FUSA contained in this Agreement, or to any act or omission
constituting recklessness, gross negligence or willful
misconduct on the part of FUSA or a FUSA Party.
8.02 FUSA Indemnity. FUSA shall defend,
indemnify and hold Luitpold/AR, its Affiliates, and its and
their respective employees, agents, officers, and directors
(each a “Luitpold/AR Party”) harmless from and against
any and all losses, liabilities, damages, fees (including, until
such time as FUSA has notified Luitpold/AR in writing that it
will assume control of a given Claim, reasonable attorneys fees
and costs pertaining to such Claim), and expenses paid or
payable by a Luitpold/AR Party (including without limitation
payments that Luitpold/AR may be required to make to its
licensors of any rights pertaining to any of the Iron Products
and suppliers of any components of any Iron Product) that result
from or arise in connection with a claim, suit or other
proceeding made or brought against any Luitpold/AR Party (a
“Luitpold/AR Claim”) based on:
(a) the breach by FUSA of any obligation, covenant,
agreement, representation or warranty of FUSA contained in this
Agreement;
(b) the distribution, marketing, advertisement, promotion
or sale of Iron Products by FUSA and its Affiliates in the
Territory after the Effective Date;
(c) infringement of a Third Party’s trademarks, other
than by reason of the use by FUSA of the Trademarks;
(d) any failure of FUSA to comply with Applicable Laws in
connection with the distribution, marketing, advertisement,
promotion or sale of Iron Products, including but not limited to
(i) any failure of promotional materials developed by FUSA
to comply with applicable labeling and Product Registrations and
Applicable Law, and (ii) the unlawful making by FUSA of any
unsupportable or off-label claims with respect to Iron
Products; or
(e) negligence or willful misconduct on the part of FUSA,
its Affiliates or any Third Party in the performance of
FUSA’s obligations under of this Agreement; provided,
however, that FUSA shall not be
23
obligated to indemnify a Luitpold/AR Party for any loss,
liability, damages, fees or expenses incurred by such
Luitpold/AR Party to the extent attributable to a breach by
Luitpold/AR of any obligation, covenant, agreement,
representation or warranty of Luitpold/AR contained in this
Agreement, or to any act or omission constituting negligence,
recklessness, gross negligence, or willful misconduct on the
part of Luitpold/AR or a Luitpold/AR Party.
(f) FUSA or its manufacturer’s noncompliance with
instructions, including, but not limited to, expenses for
manufacturing, repackaging, recalling or destroying defective
Iron Product(s) and the out-of-pocket expenses incurred by
Vifor/Luitpold/AR to determine such non-compliance and to assist
FUSA in eliminating such non-compliance.
8.03 Control of Proceedings. Each
indemnified Party shall:
(a) give the indemnifying Party written notice of any Claim
or potential Claim promptly after the indemnified Party receives
notice of any such Claim or Potential Claim (provided that
failure to give any such notice shall not alter or reduce the
indemnification obligations of any Indemnifying Party except to
the extent that such failure caused the Indemnified Parties to
incur increased losses, liabilities, damages or fees);
(b) allow the indemnifying Party to assume exclusive
control of the defense and settlement (including all decisions
relating to litigation, defense and appeal) of any such Claim
(so long as it has confirmed its indemnification obligation
responsibility to such indemnified Party under this
Section 8.03 with respect to a given Claim); provided that
the controlling Party may not settle such Claim in any manner
that would require payment by the other Party, or would have a
Material Adverse Effect on the rights granted to the other Party
hereunder, or would materially conflict with the terms of this
Agreement, without first obtaining the other Party’s prior
written consent; and
(c) reasonably cooperate with the indemnifying Party in its
defense of the Claim (including, without limitation, making
documents and records available for review and copying and
making persons within its/his/her control available for
pertinent testimony) at the indemnifying Party’s expense.
If the indemnifying Party defends the claim, an indemnified
Party may participate in, but not control, the defense of such
Claim using attorneys of its/his/her choice and at its/his/her
sole cost and expense. An indemnifying Party shall have no
obligation or liability under this Article 8 as to any
Claim for which settlement or compromise of such Claim or an
offer of settlement or compromise of such Claim is made by an
indemnified Party without the prior written consent of the
indemnifying Party. If the indemnifying Party notifies the other
in writing that it will not defend the other Party against a
Claim asserted against the other Party, or if the indemnifying
Party fails to defend or take other reasonable, timely action,
in response to such Claim asserted against the other Party, the
other Party shall have the right, but not the obligation, to
defend or take other reasonable action to defend its interests
in such proceedings, and shall have the right to litigate,
settle or otherwise dispose of any such Claim.
8.04 Insurance. Each Party shall maintain
at all times during the Term, and thereafter for three
(3) years, or as long as such insurance is reasonably and
commercially available, product liability insurance with
coverage limits of not less than [*] with insurance carriers
reasonably acceptable to the other Party. The minimum level of
insurance set forth herein shall not be construed to create a
limit on the Parties’ liability with respect to its
indemnification obligations hereunder. Prior to the Effective
Date (and upon renewal thereof), each Party shall furnish the
other Party a certificate of insurance evidencing such coverage
as of the Effective Date (and upon renewal thereof) and upon
reasonable request by the other Party at any time hereafter.
Each such certificate of insurance shall include a provision
whereby the insurer providing such certificate shall endeavor to
provide thirty (30) days’ written notice prior to any
material coverage modification or cancellation by either the
other Party or the insurer. The insurance provided by Luitpold
hereunder will be endorsed to name FUSA and its Affiliates as
additional insureds and to provide that such insurance will be
primary and noncontributory to any other insurance available to
FUSA and its Affiliates, and the certificates of insurance will
evidence such endorsement. The insurance to be provided by a
Party pursuant to this Section 8.04 may be provided by
policies owned by the Party or a parent company of such Party.
8.05 LIMITATION OF LIABILITY.
(a) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, IN NO EVENT SHALL ANY OF FUSA, LUITPOLD/AR OR VIFOR
BE LIABLE TO ANY OTHER PARTY HERETO FOR ANY
24
CONSEQUENTIAL, SPECIAL, INCIDENTAL OR INDIRECT DAMAGES
(INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ARISING FROM THE
LOSS OF BUSINESS, DATA, PROFITS OR GOODWILL OR THE COST OF
PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY)
INCURRED OR SUFFERED BY THE OTHER PARTY WITH RESPECT TO A
PERSON’S PERFORMANCE OR FAILURE TO PERFORM UNDER THIS
AGREEMENT, OR FOR ANY OTHER REASON, EVEN IF APPRISED OF THE
LIKELIHOOD OF SUCH DAMAGES.
(b) EXCEPT AS EXPRESSLY PROVIDED HEREIN, NONE OF FUSA,
LUITPOLD/AR OR VIFOR MAKES ANY REPRESENTATIONS OR WARRANTIES OF
ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED
TO, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR ANY OTHER MATTER WITH RESPECT TO ANY SUBSTANCE OR
PRODUCT, WHETHER USED ALONE OR COMBINED WITH OTHER MATERIALS OR
OTHERWISE.
(c) Notwithstanding any such consent, Vifor and Luitpold/AR
shall have no liability and no obligations with respect to any
advertising and promotional activities produced by, or for any
representations made or implied directly or indirectly by FUSA
or any Person employed by or acting on behalf of FUSA in
connection therewith.
(d) The limitation of liability expressed in
Section 8.05(c) above shall not affect or otherwise limit
the obligation of each Party to indemnify other Parties (in
accordance with the provisions of Section 8.01, 8.02 and
8.03 as applicable) for claims which are brought by Third
Parties.
8.06 Survival. The rights and obligations
of the Parties under this Article 8 shall survive the
termination or expiration of this Agreement.
ARTICLE 9
FORCE MAJEURE
9.01 Force Majeure. Any delays in
performance by any Party under this Agreement, including with
respect to the payment of obligations, shall not be considered
breach of this Agreement if and to the extent caused by
occurrences beyond the reasonable control of the Party affected,
including but not limited to acts of God, embargoes,
governmental restrictions, materials shortages or failure of any
supplier (where such shortage or failure is attributable to an
event of force majeure suffered by such supplier), fire, flood,
explosion, earthquake, hurricanes, epidemic, blockage, terrorism
or threat of terrorist attack, storms, tornadoes, riots, wars,
civil disorder, failure of public utilities or common carriers,
labor disturbances, rebellion or sabotage. The Party suffering
such occurrence shall notify the other Party as soon as
practicable of such inability and of the period for which such
inability is expected to continue, and any time for performance
hereunder shall be extended by the actual time of delay caused
by the occurrence; provided, that the Party suffering such
occurrence uses Commercially Reasonable Efforts to mitigate any
damages incurred by the other Party.
ARTICLE 10
CONFIDENTIALITY
10.01 [*]
(a) [*]
(b) [*]
(c) [*]
(d) [*]
10.02 [*]
10.03 [*]
25
ARTICLE 11
TERM;
TERMINATION
11.01 Term. This Agreement shall commence
on the Effective Date and, unless earlier terminated, shall
continue in full force and effect for a period expiring on the
tenth anniversary thereof. In addition, FUSA shall have the
option (the “Renewal Option”) of extending the term
hereof for up to two (2) consecutive periods of five
(5) additional years [*]. Each Renewal Option may be
exercised by written notice delivered by FUSA no later than one
hundred and eighty (180) days prior to the expiration of
the then-current term. [*].
11.02 Termination. Prior to the
expiration of the Term, this Agreement may be terminated:
(a) immediately upon the mutual written consent of the
Parties;
(b) by a Party, upon ninety (90) days’ prior
written notice if the other Party materially breaches or
defaults in the performance of its obligations under this
Agreement and fails to take reasonable measures to cure such
breach within such ninety (90) days following receipt of
written notice from a non-breaching Party specifying the breach
to be cured; or
(c) upon written notice by a Party if (i) the other
Party shall have been dissolved, ceased active business
operations or liquidated, unless such dissolution, cessation or
liquidation results from reorganization, acquisition, merger or
similar event, or (ii) bankruptcy or insolvency
proceedings, including any proceeding under Title 11 of the
U.S. Code, have been brought by or against the other Party
and, in the event such a proceeding has been brought against the
other Party, remains undismissed for a period of sixty
(60) days, or an assignment has been made for the benefit
of such Party’s creditors or a receiver of such
Party’s assets has been appointed.
11.03 Post-Termination. Termination of
this Agreement shall not affect any payment obligations or other
liabilities, which have accrued as of the date of such
termination.
11.04 Insolvency or Bankruptcy. In the
event that (i) a Party shall commence any case, proceeding
or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have
an order of relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment,
winding-up,
liquidation, dissolution, composition or other relief with
respect to it or its debts, or (B) seeking appointment of a
receiver, trustee, custodian, conservator or other similar
official for it or for all or any substantial part of its
assets, or the Party shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced
against a Party any case, proceeding or other action of a nature
referred to in clause (i) above that (A) results in
the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or
unbonded for a period of sixty (60) days; or
(iii) there shall be commenced against the Party any case,
proceeding or other action seeking issuance of a warrant of
attachment, execution, restraint or similar process against all
or any substantial part of its assets that results in the entry
of an order for any such relief that shall not have been
vacated, discharged, or stayed or bonded pending appeal within
sixty (60) days from the entry thereof; or (iv) the
Party shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set
forth in clauses (i), (ii), or (iii) above; or (v) the
Party shall generally not, or shall be unable to, or shall admit
in writing its inability to, pay its debts as they become due;
then, in addition to any other remedies available to the other
Party by Applicable Law or in equity, the other Party may
terminate this Agreement by giving written notice to the other
Party, which shall be effective immediately upon delivery of
such notice.
11.05 Other Termination. At any time if
the Luitpold/AR facility is shut down or the NDA for the Product
is withdrawn or suspended, or marketing of the Product is
terminated by Luitpold/AR due to safety reasons, then, in
addition to any other remedies available to FUSA under
Applicable Law, in equity or under this Agreement, FUSA may
terminate this Agreement by giving written notice to
Luitpold/AR, which shall be effective on such date as shall be
designated in such notice.
26
11.06 Effect of Termination or Expiration.
(a) Upon any early termination of this Agreement by
Luitpold/AR pursuant to 11.02(b) or (c), or upon expiration of
this Agreement pursuant to Section 11.01, FUSA shall
promptly:
(i) return to Luitpold/AR all relevant records, materials
or Confidential Information relating to the Iron Products in its
(or any of its any Affiliate’s or contractors’)
possession or control;
(ii) cease all manufacturing, marketing, sale, promotion,
advertising, and distribution of the Iron Products,
(iii) discontinue use of the Trademarks, destroy all
advertising or other printed materials bearing the Trademarks,
and FUSA’s right to use the Trademarks for the Iron
Products in the Field within the Territory shall terminate and
cooperate with Luitpold/AR to transition the business in the
Field back to Luitpold/AR;
(iv) transfer and assign all right, title and interest in
and to all Product Registrations, clinical trial certificates
and other administrative files relating to the Iron Product(s)
and Substance(s) to Luitpold/AR in a commercially reasonable
time; and
(v) immediately return to Luitpold/AR any stock of API, or
Substance(s) that FUSA may have as of the termination date at
FUSA’s expense.
(b) Upon any early termination of this Agreement by the
Parties pursuant Section 11.02(a), FUSA shall have the
right to continue to market, sell and distribute all of its
remaining inventory of Iron Products for three (3) months
following such termination or expiration. [*].
(c) During the three (3) month period prior to
expiration of this Agreement pursuant to Section 11.01, the
Parties shall cooperate to minimize the quantity of Iron
Products labeled with FUSA’s NDC code that will be held by
FUSA as of the date of termination. [*].
(d) [*]
ARTICLE 12
GENERAL
PROVISIONS
12.01 Assignment. Neither Party shall
assign, subcontract or otherwise transfer this Agreement or any
interest herein or right hereunder without the prior written
consent of the other Parties hereto, and any such purported
assignment, transfer or attempt to assign or transfer any
interest herein or right hereunder shall be void and of no
effect; except that each Party may assign its rights and
obligations hereunder to an Affiliate. Neither Party may assign
this Agreement and its rights and obligations hereunder in
connection with a sale or transfer of all or substantially all
of its business or a merger, consolidation or other change in
control or other similar transaction without the prior written
consent of the other Parties hereto. It is understood and
agreed, however, that any permitted assignment of this Agreement
in accordance with the terms hereof, shall be fully binding
upon, and enforceable against, the permitted successors and
assigns of the assignor without further action on the part of
the Parties or its permitted successors or assigns.
12.02 Non-Waiver. Any failure on the part
of a Party to enforce at any time or for any period of time any
of the provisions of this Agreement shall not be deemed or
construed to be a waiver of such provisions or of any right of
such Party thereafter to enforce each and every such provision
on any succeeding occasion or breach thereof.
27
12.03 Notices. Unless otherwise
explicitly set forth herein, any notice required or permitted to
be given hereunder shall be in writing and shall be delivered
personally by hand, sent by reputable overnight courier,
signature required, or sent by facsimile with proof of
successful transmission, in each case to the addresses of each
Party and Vifor set forth below or to such other address or
addresses as shall be designated by the recipient in writing in
the same matter:
If to FUSA:
Fresenius USA Manufacturing, Inc.
d/b/a Fresenius Medical Care North America
000 Xxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxxxxxxx 00000
Attention: Law Department
Telephone: 000-000-0000
Facsimile: 000-000-0000
Fresenius USA Manufacturing, Inc.
d/b/a Fresenius Medical Care North America
000 Xxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxxxxxxx 00000
Attention: Law Department
Telephone: 000-000-0000
Facsimile: 000-000-0000
With a copy to:
Xxxxxxxx, Xxxxxxxx & Xxxxxx, P.A.
000 Xxxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
E-Mail: xxxxxx@xxx.xxx
Xxxxxxxx, Xxxxxxxx & Xxxxxx, P.A.
000 Xxxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
E-Mail: xxxxxx@xxx.xxx
If to Luitpold/AR:
Luitpold Pharmaceuticals, Inc.
Xxx Xxxxxxxx Xxxxx
X.X. Xxx 0000
Xxxxxxx, Xxx Xxxx 00000
Attention: President and CEO
Telephone: 000-000-0000
Facsimile: 631-924-8650
E-Mail: xxxxxxxxx@xxxxxxxx.xxx
Luitpold Pharmaceuticals, Inc.
Xxx Xxxxxxxx Xxxxx
X.X. Xxx 0000
Xxxxxxx, Xxx Xxxx 00000
Attention: President and CEO
Telephone: 000-000-0000
Facsimile: 631-924-8650
E-Mail: xxxxxxxxx@xxxxxxxx.xxx
with a copy to:
Xxxxxxxx Xxxxxx Xxxxxxx & Hampton LLP
0000 X Xxxxxx, X.X.
00xx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
E-Mail: xxxxxxxxxx@xxxxxxxxxxxxxx.xxx
Xxxxxxxx Xxxxxx Xxxxxxx & Hampton LLP
0000 X Xxxxxx, X.X.
00xx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
E-Mail: xxxxxxxxxx@xxxxxxxxxxxxxx.xxx
If to Vifor:
Vifor International, Inc.
Xxxxxxxxxxxxx 00,
XX-0000
Xx. Xxxxxx, Xxxxxxxxxxx
Attention: Director
Facsimile: 011-41-58-851-8485
E-mail:
Vifor International, Inc.
Xxxxxxxxxxxxx 00,
XX-0000
Xx. Xxxxxx, Xxxxxxxxxxx
Attention: Director
Facsimile: 011-41-58-851-8485
E-mail:
Copies of any communication made in accordance with this
Section 12.03 may be transmitted by
e-mail, but
e-mail
transmission shall not alone be deemed effective delivery.
28
12.04 Amendments. This Agreement may be
waived, amended, supplemented or modified only by a written
agreement executed by each of the Parties.
12.05 Entirety of Agreement. This
Agreement, with the Exhibits and Schedules attached hereto, and
the Services Agreement contain the entire understanding of the
Parties with respect to the subject matter hereof and thereof
and supersede all previous and contemporaneous verbal and
written agreements, representations and warranties with respect
to such subject matter. This Agreement shall not be strictly
construed against either Party.
12.06 Public Announcements. The form and
content of any public announcement to be made by a party
regarding the subject matter of this Agreement, shall be subject
to the prior written consent of the other parties (which consent
may not be unreasonably withheld or delayed), except as may be
required by Applicable Law (including, without limitation,
disclosure requirements of the SEC, NASDAQ, or any other stock
exchange) in which event the disclosing Person shall use
Commercially Reasonable Efforts to give the other parties hereto
reasonable advance notice and reasonable opportunity to review
any such disclosure.
12.07 Governing Law. This Agreement shall
be governed by and construed in accordance with the Applicable
Laws of the State of Delaware, without regard to its conflicts
of law principles.
12.08 Relationship of the Parties. In
making and performing this Agreement, the Parties are acting,
and intend to be treated, as independent entities and nothing
contained in this Agreement shall be construed or implied to
create an agency, partnership, joint venture, or employer and
employee relationship between or among the Parties. Except as
otherwise expressly provided herein, neither Party may make any
representation, warranty or commitment, whether express or
implied, on behalf of or incur any charges or expenses for or in
the name of any other party hereto. No Party hereto shall be
liable for the act of any other Party hereto unless such act is
expressly authorized in writing by such Party.
12.09 Counterparts. This Agreement shall
become binding when any one or more counterparts hereof,
individually or taken together, shall bear the signatures of
each of the Parties and Vifor. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an
original as against the Person on whose behalf it was executed,
but all of which taken together shall constitute but one and the
same instrument.
12.10 Severability. If any part of this
Agreement is declared invalid by any legally governing authority
having jurisdiction over a Party or Vifor, then such declaration
shall not affect the remainder of the Agreement and the parties
hereto shall revise the invalidated part in a manner that will
render such provision valid without impairing such parties’
original intent.
12.11 Cumulative Rights. Except as herein
expressly provided, the rights, powers and remedies hereunder
shall be in addition to, and not in limitation of, all rights,
powers and remedies provided at Applicable Law or in equity, or
under any other agreement between the Parties, and all of such
rights, powers and remedies shall be cumulative, and may be
exercised successively or cumulatively.
12.12 No Other Rights. No rights or
licenses in or to either Party’s or Vifor’s patent
rights, Know-How, Trade Secrets, copyrights or trademarks shall
be created or implied hereunder, except those licenses and
rights that are expressly granted in this Agreement.
12.13 Expenses. Each party shall each
bear its own direct and indirect expenses incurred in connection
with the negotiation and preparation of this Agreement and,
except as otherwise expressly set forth in this Agreement, the
performance of the obligations contemplated hereby.
12.14 Facsimile Execution. This Agreement
may be executed in facsimile counterparts each of which is
hereby agreed to have the legal binding effect of an original
signature. The Parties and Vifor hereto agree to forward the
original signatures by overnight mail to the other Parties upon
execution.
12.15 License Survival During
Bankruptcy. All rights and licenses granted under
or pursuant to this Agreement to the Licensed Technology are,
and shall otherwise be deemed to be, for purposes of
Paragraph 365(n) of the U.S. Bankruptcy Code, licenses
of rights to “intellectual property” as defined under
Paragraph 101(35A) of the U.S. Bankruptcy Code.
Luitpold/AR and Vifor agree that FUSA, as a licensee of such
rights under this Agreement, shall retain and may fully exercise
all of its rights and elections under the U.S. Bankruptcy
Code,
29
subject to performance by FUSA of its obligations under this
Agreement. In the event Luitpold/AR elects to terminate this
Agreement because of a Bankruptcy Event and FUSA elects to
continue the licenses under this Agreement as contemplated by
the preceding sentence, then FUSA shall be entitled, upon
reasonable request to Luitpold/AR and Vifor, to have access, in
confidence, to such Licensed Technology not already in
FUSA’s possession as shall be reasonably necessary to make
use of the license rights under this Agreement without
participation by Luitpold/AR.
12.16 [*]
12.17 [*]
12.18 Dispute Resolution. In the event of
a disagreement or decision-deadlock among the members of the EOC
as to any material matter within the scope of this Agreement,
and/or
matters that a Party considers to be or potentially cause a
breach of a material term hereunder, the EOC will diligently and
in good faith seek to resolve the matter in dispute. If the EOC
is unable to resolve the dispute, despite its good faith
efforts, the dispute shall be referred to the Chief Executive
Officer or Business Unit President of each Party. In the event
that no mutual agreement is reached by the Chief Executive
Officer or Business Unit President, neither Party shall incur
any liability to the other Party solely as a result of failing
to resolve a disagreement or decision-deadlock under this
Section 12.18.
ARTICLE 13
CONDITIONS
13.01 The respective obligations of each Party to effect
the transactions contemplated hereby shall be subject to the
fulfillment at or prior to the Effective Date of the following
conditions:
(a) All consents, authorizations, orders and approvals of,
and filings and registrations with, any federal or state
governmental commission, board, or other regulatory body that
are required for the consummation by each party hereto of the
transactions provided for herein shall have been obtained or
made, and the applicable waiting period under the
Xxxx-Xxxxx-Xxxxxx
Act shall have expired or been terminated.
(b) There shall not have occurred after the date hereof and
prior to the Effective Date any material adverse change in the
condition (financial or otherwise), business or prospects of
Luitpold/AR taken as a whole.
(c) [*]
(d) approval of the transactions contemplated hereby by the
respective Board of Directors, Management Boards and Supervisory
Boards of the parties hereto.
[End
of text; signature page follows]
30
IN WITNESS WHEREOF, the parties hereto have duly executed this
License, Distribution, Manufacturing and Supply Agreement as of
the date first set forth above.
LUITPOLD PHARMACEUTICALS, INC.
By: |
/s/ Xxxx
Xxxx Xxxxxxx
|
Name: Xxxx Xxxx Xxxxxxx
Title: | President & CEO |
AMERICAN REGENT, INC.
By: |
/s/ Xxxx
Xxxx Xxxxxxx
|
Name: Xxxx Xxxx Xxxxxxx
Title: | President & CEO |
FRESENIUS USA MANUFACTURING, INC
By: |
/s/ Rice
Xxxxxx
|
Name:
Title: | President |
VIFOR (INTERNATIONAL)
INC.1
By: |
/s/ X.
Xxxxxx
|
Name: X. Xxxxxxxx
Title: | CEO Vifor Pharma |
/s/ X.
Xxxxxxxx
|
Name: X. Xxxxxxxx
Title: | Head of Ind. Ops. |
1 Executing
this Agreement to indicate its acknowledgement of and consent to
the terms and provisions hereof, and to agree to be bound to
those provision hereof that pertain to it.
31
SCHEDULES
7.02(d) [*]
EXHIBITS
1 | .01-A | [*] | ||
1 | .01-C | [*] | ||
1 | .01-D | [*] | ||
1 | .01-E | [*] | ||
1 | .01-F | [*] | ||
2 | .01(c) | [*] | ||
2 | .01(d-1) | [*] | ||
2 | .01(d-2) | [*] | ||
3 | .11 | [*] | ||
5 | .01(a) | [*] | ||
6 | .01 | [*] | ||
6 | .03 | [*] | ||
6 | .06 | [*] | ||
6 | .08 | [*] | ||
6 | .11 | [*] | ||
7 | .05(a) | [*] |
32
EXHIBIT 1.01-A
[*]
[*]
[*]
[*]
[*]
33
EXHIBIT 1.01-C
[*]
34
EXHIBIT 1.01-D
[*]
35
EXHIBIT 1.01-E
[*]
36
EXHIBIT 1.01-F
[*]
37
EXHIBIT 2.01(c)
[*]
38
EXHIBIT 2.01(d)
[*]
39
EXHIBIT 5.01
[*]
40
EXHIBIT 6.08
[*]
41
EXHIBIT 6.11
[*]
42
EXHIBIT 7.05(a)
[*]
43