PRODUCTS PURCHASE AGREEMENT
Exhibit 10.39
[* *] | Portions of the this exhibit have been omitted pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
THIS PRODUCTS PURCHASE AGREEMENT (this
“Agreement”), is entered into and effective as
of the 16th day of February, 2011 (the “Effective
Date”), by and between Rockwell Medical Technologies,
Inc., a Michigan corporation (“Rockwell”), and
DaVita Inc., a Delaware corporation (“DaVita”)
on behalf of itself and the DaVita Facilities (as defined in
Recital B). Capitalized terms used herein and not otherwise
defined herein shall have the meaning set forth in
Article XVIII.
RECITALS
X. Xxxxxxxx is in the business of manufacturing and selling
dialysis products and supplies, including the dialysis products
and supplies set forth on Exhibit A attached hereto
and incorporated herein by this reference (each a,
“Product”, and collectively, the
“Products”).
B. DaVita owns (in whole or in part)
and/or
manages dialysis and vascular access facilities, clinics or
units located throughout the United States and its territories
(each a, “DaVita Facility”, and collectively,
the “DaVita Facilities”).
C. DaVita, on behalf of itself and the DaVita Facilities,
desires to purchase and acquire from Rockwell, and Rockwell
desires to supply and sell to DaVita and the DaVita Facilities,
the Products, subject to all of the terms and conditions set
forth in this Agreement.
In consideration of the foregoing premises and mutual covenants,
agreements, representations and warranties contained herein, and
for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, agree as follows:
ARTICLE I
PURCHASE
AND SALE OF PRODUCTS AND REPORTS
1.1 Sale and Purchase. During the
Term (as defined in Section 2.2), and subject to the
terms and conditions of this Agreement, Rockwell will sell,
supply, convey, transfer, assign and deliver the Products to
DaVita and the DaVita Facilities in such quantities as DaVita
and/or the
DaVita Facilities may order from time to time.
1.2 Product Commitment. DaVita
covenants and agrees
[*
*]
1.3 Monthly Reports. Each month
during the Term, Rockwell shall deliver a report to DaVita in
accordance with DaVita’s specifications, which
specifications will be given to Rockwell by DaVita. Each monthly
report, at a minimum, shall (a) show all purchases of the
Products made by each DaVita Facility by Product or Product
categories, (b) include
year-to-date
purchase figures for each DaVita Facility, and (c) include
any other information reasonably requested by DaVita relating to
each DaVita Facility’s purchases of the Products pursuant
to this Agreement.
1.4 Notice of Changes to Product
Labeling. If, at any time during the Term,
Rockwell or any applicable Governmental Authority determines
that there must be an amendment, change, revision
and/or
modification to the product labeling, safety information,
and/or any
other information relating to any particular Product (a
“Product Labeling Event”), Rockwell shall
within
[* *]
of any such Product Labeling Event, deliver a written notice to
DaVita which: (a) describes in reasonable detail any such
Product Labeling Event, (b) explains in reasonable detail
the reasons and the causes for any such Product Labeling Event,
and (c) includes a copy of such amendment, change, revision
and/or
modification to the product labeling, safety information,
and/or any
other information relating to any such particular Product (the
“Product Label Change Notice”). Rockwell shall
respond to any questions, inquiries or requests for additional
information that DaVita or any DaVita Facility may have with
respect
to any Product Label Change Notice and shall assist DaVita and
the DaVita Facilities in understanding how, if at all, any
Product Labeling Event may
[* *].
ARTICLE II
TERM AND
TERMINATION
2.1 Term. This Agreement shall
commence on the Effective Date, and shall continue in effect
until December 31, 2013 (the “Initial
Term”), unless sooner terminated in accordance with the
provisions of this Article II.
2.2 Renewal. If, upon the
expiration of the Initial Term, the parties hereto have not
negotiated, executed and delivered (a) a new agreement
relating to the subject matter hereof or (b) an extension
of this Agreement, this Agreement shall continue until the
earlier of either party hereto providing ninety (90) days
prior written notice of termination to the other party hereto or
the parties entering into a new agreement relating to the
subject matter hereof or an extension of this Agreement (the
Initial Term, together with any such extension shall be referred
to as the “Term”).
2.3 DaVita Termination
Rights. This Agreement may be terminated by
DaVita as follows:
(a) [* *]
in the event of a breach by Rockwell of any of its covenants and
obligations set forth in Articles VI or
IX; or
(b) Upon
[* *]
prior written notice to Rockwell, in the event of a breach by
Rockwell of any representation, warranty, covenant or obligation
of Rockwell contained in this Agreement (other than the
covenants and obligations set forth in Articles VI
or IX), and Rockwell fails to cure such breach within
[* *]
following the date of such notice; or
(c) [* *]
upon the occurrence of any of the following: (i) Rockwell
files a voluntary petition in bankruptcy seeking protection from
creditors (a “Bankruptcy Filing”); or
(ii) Rockwell fails to contest an involuntary Bankruptcy
Filing made against it or, despite contesting such
2
Bankruptcy
Filing, fails to obtain its dismissal within sixty
(60) days from its filing; or (iii) a trustee or
custodian is appointed for a substantial portion of or all of
the assets of Rockwell; or (iv) Rockwell fails to pay its
debts as they become due or admits its inability to do so (each
of the foregoing, an “Insolvency
Event”); or
(d) [* *]
in the event there is a change in Rockwell’s status which
excludes it from participation in any federal health care
program, as defined under 42 U.S.C.
§ 1320a-7b(f).
2.4 Rockwell Termination
Rights. This Agreement may be terminated by
Rockwell as follows:
(a) [* *]
in the event of a breach by DaVita of any of its covenants and
obligations set forth in Article IX; or
(b) Upon
[* *]
prior written notice to DaVita, in the event of a breach by
DaVita of any representation, warranty, covenant or obligation
of DaVita contained in this Agreement (other than the covenants
and obligations set forth in Article IX or
Section 17.1), and DaVita fails to cure such breach
within
[* *]
following the date of such notice; or
(c) [* *]
upon the occurrence of an Insolvency Event with respect to
DaVita; or
(d) [*
*]
(e) Upon
[* *]
advance written notice to DaVita in the event of a breach by
DaVita of Section 17.1, and DaVita fails to cure
such with breach within
[* *]
following the date of such notice; or
(f) [* *]
in the event there is a change in DaVita’s status which
excludes it from participation in any federal health care
program, as defined under 42 U.S.C.
§ 1320a-7b(f).
2.5 Effect of
Termination. Termination of this Agreement
will not release either party hereto from any liability or
obligation which, at the time of such termination, has already
accrued or which thereafter may accrue in respect to any act or
omission of any party hereto prior to such termination, nor will
any such termination affect in any way the survival of any
right, duty or obligation of any party hereto, which is
expressly stated elsewhere in this Agreement to survive the
termination.
ARTICLE III
PURCHASE
PRICE AND OTHER PRICING COVENANTS
3.1 Purchase Price. The purchase
price for each Product is set forth on Exhibit A
(collectively, the “Purchase Price”). The
Purchase Price includes
[*
3
*].
In the event that DaVita
and/or any
DaVita Facility requires any Product to be shipped outside of
[* *],
DaVita and Rockwell shall
[*
*]
3.2 Taxes. Rockwell covenants and
agrees that neither DaVita nor any DaVita Facility shall be
liable for any taxes including any excise, gross receipts, gross
earnings, gross value, property, income taxes measured on
Rockwell’s income, or other taxes, other than applicable
sales taxes, with respect to the purchase and sale of the
Products.
3.3 Pricing Covenant. Rockwell represents and warrants to
DaVita that
[*
*]
3.4 [*
*]
3.5 Warrant. [* *],
Rockwell agrees to provide DaVita with a warrant in the form
attached to this Agreement as Exhibit E (the
“Warrant”) to purchase up to one hundred
thousand (100,000) shares of Rockwell’s common stock (the
“Warrant Shares”). The Warrant Shares will have
an exercise price equal to one hundred ten percent (110%) of the
closing bid price per share of Rockwell’s common stock as
quoted on NASDAQ on (a) the trading date immediately
preceding the date on which this Agreement is executed by the
parties if such execution occurs at or before 4:00 p.m.
Eastern time or (b) the date on which this Agreement is
executed by the parties if such execution occurs after
4:00 p.m. Eastern time. The Warrant will expire at the
earlier of (i) the close of business on the ninetieth
(90th) day immediately following the completion of the Initial
Term or (ii) the termination of this Agreement by Rockwell
pursuant to Section 2.4. The Warrant will become
exercisable on the first day immediately following the end of
the Initial Term and may be exercised in whole or in part at any
time after it becomes exercisable until its expiration by the
submission of an exercise notice in the form attached as an
exhibit to the Warrant. If the Warrant expires prior to the date
it
4
becomes exercisable, the Warrant shall not be exercisable.
The Warrant Shares issuable upon exercise of the Warrant shall
bear a legend restricting transfer. The Warrants Shares shall
not be transferable and the Warrant shall bear a legend to that
effect.
ARTICLE IV
PURCHASE
ORDERS; DELIVERY; DEDICATED CUSTOMER SERVICE
REPRESENTATIVE
4.1 Purchase Orders and
Delivery. Each Product shall be delivered by
Rockwell to DaVita
and/or the
DaVita Facilities pursuant to the terms of each purchase order
submitted by DaVita or any DaVita Facility.
[*
4.2 Dedicated Customer Service
Representatives. Rockwell hereby agrees and
covenants that it shall provide DaVita with reasonable access to
one or more dedicated customer service representatives (each a,
“Service Representative”) who shall be
available to promptly respond to and address any issues that
DaVita
and/or any
DaVita Facility may have with respect to any of the Products
(the “Customer Services”). Rockwell further
agrees and covenants that each Service Representative shall
perform the Customer Services in the highest professional manner.
4.3 Return Goods Policy. Rockwell
hereby represents and warrants to DaVita that attached hereto as
Exhibit D is a true, correct and complete copy of
Rockwell’s “Return Goods Policy” (the
“Return Goods Policy”). Notwithstanding
anything to the contrary set forth in the Return Goods Policy,
DaVita or a DaVita Facility, as applicable, reserves the right
to inspect all Products and to reject any or all of the Products
which are, in DaVita’s or a DaVita Facility’s, as applicable, sole and absolute
discretion, incorrectly shipped, defective, damaged,
contaminated or otherwise not in compliance with the warranties
granted or assigned hereunder. [*
*]
DaVita or any DaVita Facility shall also have the right to return any of the Products pursuant to the terms and conditions set forth in the Return Goods Policy that do not conflict with this Section 4.3. Rockwell shall provide DaVita with at least thirty (30) days prior written notice of any changes to the Return Goods Policy.
*]
DaVita or any DaVita Facility shall also have the right to return any of the Products pursuant to the terms and conditions set forth in the Return Goods Policy that do not conflict with this Section 4.3. Rockwell shall provide DaVita with at least thirty (30) days prior written notice of any changes to the Return Goods Policy.
ARTICLE V
PAYMENT
TERMS
All purchases by DaVita or any DaVita Facility of Products
pursuant to this Agreement shall be paid on terms
[* *].
DaVita or any DaVita Facility may withhold payment on the
portion
5
of any invoice for which DaVita or such DaVita Facility,
as applicable, has a bona fide dispute if it: (a) pays all
undisputed amounts, (b) notifies Rockwell of such invoice
dispute, and (c) provides to Rockwell a reconciliation of
charges and any documentation necessary to support its claimed
adjustment. The parties hereto agree to use their commercially
reasonable efforts to resolve any such invoice dispute within
[* *]
of Rockwell’s receipt of such invoice dispute notice from
DaVita or any DaVita Facility, as applicable.
ARTICLE VI
FAILURE
TO SUPPLY
In the event of Rockwell’s failure or inability to supply
any Product within and for the time period required by DaVita or
any DaVita Facility, as applicable, including as a result of a
force majeure event (e.g. act of God, fire, casualty, flood,
war, act of terrorism, strike, lockout, labor trouble, failure
of public utilities, injunction, epidemic, riot, insurrection or
any other circumstances beyond the reasonable control of the
party asserting it) (a “Failure to Supply
Event”), Rockwell covenants and agrees that it shall
(a) give notice
[* *]
under the circumstances to DaVita of such Failure to Supply
Event, unless an order of a regulatory agency or other action
arising out of patient safety concerns requires the giving of
shorter notice;
[*
*] Rockwell further covenants and agrees that during the period that a Failure to Supply Event is occurring, none of the Committed DaVita Facilities shall be subject to the Product Commitment.
*] Rockwell further covenants and agrees that during the period that a Failure to Supply Event is occurring, none of the Committed DaVita Facilities shall be subject to the Product Commitment.
ARTICLE VII
[* *]
Rockwell agrees and covenants to DaVita that it shall, at all
times during the Term, to allow for the continuous and
uninterrupted supply of each of the Products to DaVita and the
DaVita Facilities to enable the physicians at the DaVita
Facilities to treat their patients:
[*
6
*]
Rockwell and DaVita agree to continuously work together and use
their best efforts to increase and improve the
[* *]
for each Product maintained by Rockwell for use exclusively by
DaVita and the DaVita Facilities.
ARTICLE VIII
ADDITIONAL
PRODUCTS AND REPLACEMENT PRODUCTS
8.1 Additional
Products. Throughout the Term, Rockwell shall
provide to DaVita and the DaVita Facilities the right to
purchase
and/or lease
all current or new products manufactured, utilized, licensed,
sold or distributed by Rockwell or any of its Affiliates
(including products and product lines acquired by Rockwell or
any of its Affiliates as a result of an acquisition, merger or
other transaction involving Rockwell or any of its Affiliates)
that are or that become Commercially Available and which are not
already covered by this Agreement or by any other agreement,
whether written or oral, between the parties hereto (such
products are collectively referred to as “Additional
Products” and individually as an “Additional
Product”). Rockwell agrees to include DaVita in all of
its and its Affiliates distributions of customer announcements
regarding Rockwell’s or its Affiliates’ Additional
Products. The purchase price for any such Additional Products
shall be negotiated by the parties hereto in good faith and the
agreed upon purchase price shall be memorialized in writing as a
supplement or amendment to this Agreement. Rockwell covenants
and agrees that it shall only make an offer for the sale of any
Additional Product(s) to DaVita’s Vice-President of
Clinical Operations, Chief Medical Officer, or Vice-President of
Purchasing, and not to any DaVita Facility directly;
provided that the purchase of any Additional
Product by DaVita or any DaVita Facility through a Rockwell
product catalog made generally available to the dialysis
community shall not be a breach by Rockwell of this
Section 8.1. If Rockwell or any of its
Affiliates acquires any Additional Product(s) as a result of an
acquisition, merger or other transaction involving Rockwell or
any of its Affiliates with a Person with which DaVita or a
DaVita Facility, as applicable, already has a purchase or rebate
arrangement whether written or oral (a “Prior
Agreement”), Rockwell or such Affiliate covenants and
agrees that it shall continue to abide by all of the terms and
conditions of such Prior Agreement or if DaVita requests, such
Additional Product(s) shall be included in this Agreement on
terms to be negotiated and determined by the parties hereto as
provided in this Section 8.1.
8.2 Replacement Products. If at
anytime during the Term, Rockwell or any of its Affiliates
introduces a product or offering that is a replacement for an
existing Product covered by this Agreement, whether developed by
Rockwell or any of its Affiliates or acquired by Rockwell or any
of its Affiliates in connection with any transaction (a
“Replacement Product”), Rockwell will allow (or
will cause its Affiliate to allow) DaVita or any DaVita
Facility, as applicable, to purchase such Replacement Product at
the same price as the Product it is replacing or is ultimately
intended to replace.
ARTICLE IX
CONFIDENTIAL
INFORMATION COVENANTS
9.1 Confidential Information.
(a) No Disclosure of Confidential
Information. The Non-Disclosing Party (as
defined in Article XVIII) agrees that in connection
with the transactions contemplated by this Agreement and the
relationship of the parties hereto, it will have access to
Confidential Information of the Disclosing Party (as defined in
Article XVIII) and that such Confidential
Information is vital, sensitive, confidential and proprietary to
the Disclosing Party. Therefore, the Non-Disclosing Party agrees
that during the Term and
7
for the longest time permitted under
applicable law after the Term, that it will (i) hold any
Confidential Information delivered or communicated to it by the
Disclosing Party in the strictest confidence, including taking
all reasonable precautions to prevent the inadvertent disclosure
of the Confidential Information to any unauthorized third party
or parties and (ii) not, at any time without the Disclosing
Party’s express written consent, which consent may be
withheld by the Disclosing Party in its sole and absolute
discretion (A) disclose, reproduce, display, perform,
record, broadcast, transmit, distribute, modify, translate,
combine with other information or materials, create derivative
works based on, exploit commercially or otherwise use the
Confidential Information in any manner or medium whatsoever,
(B) disclose or publicize any of the Confidential
Information or the terms of this Agreement to any third party or
parties, or (C) discuss with, or otherwise disclose or
reveal to, any third party or parties any information relating
to the Disclosing Party’s business or the Non-Disclosing
Party’s duties or responsibilities to the Disclosing Party,
regardless of whether such information constitutes Confidential
Information. Notwithstanding anything to the contrary herein,
the Non-Disclosing Party shall have the right to disclose any of
the terms or provisions of this Agreement upon any determination
by the Non-Disclosing Party that such disclosure is necessary in
connection with the compliance by the Non-Disclosing Party with
any legal requirement, including applicable obligations and
requirements pursuant to federal and state securities laws and
listing standards.
(b) Retention and Destruction of Confidential
Information. The Non-Disclosing Party shall
not take or retain any Confidential Information that is in
written, email, computerized, model, sample, or other form
capable of physical delivery, upon or after the expiration or
earlier termination of this Agreement for any reason without the
prior written consent of the Disclosing Party, which consent may
be withheld by the Disclosing Party in its sole and absolute
discretion. At any time upon the request of the Disclosing
Party, the Non-Disclosing Party shall promptly redeliver to the
Disclosing Party or destroy all written materials containing or
reflecting any information contained in the Confidential
Information (including all copies, extracts or other
reproductions) and agree to destroy all documents, memoranda,
notes and other writings whatsoever (including all copies,
extracts or other reproductions), prepared by the Non-Disclosing
Party based on the information contained in the Confidential
Information.
Notwithstanding the return or destruction of the Confidential
Information, the Non-Disclosing Party will continue to abide by
its obligations of confidentiality and other obligations
hereunder.
(c) Exceptions to Confidential
Information. Notwithstanding anything to the
contrary herein, Confidential Information shall not include any
information that (i) was already known to the
Non-Disclosing Party at the time of disclosure by the Disclosing
Party free of any restriction, (ii) is generally available
to the public or becomes publicly known through no wrongful act
of the Non-Disclosing Party, or (iii) is received by the
Non-Disclosing Party from a third-party who has a legal right to
provide such information to the Non-Disclosing Party.
(d) Use of Trademarks and Other Intellectual
Property. Each party hereto agrees not to
internally or externally use, release, publish or distribute any
materials or information (including advertising and promotional
materials) containing the names, tradenames, or trademarks or
other intellectual property right of the other party hereto
without the express prior written consent of such other party
hereto.
(e) Disclosures of Confidential Information Required
By Law. In the event that the Non-Disclosing
Party is required by law (by oral questions, interrogatories,
request for information or documents, subpoena, civil
investigative demand or any other similar process) to disclose
any Confidential Information, the Non-Disclosing Party agrees to
provide the Disclosing Party with prompt written notice of such
request(s) (but in no event later than
[* *]
after the receipt of such request(s)) and shall consult with the
Disclosing Party as to the advisability of taking legally
advisable
8
steps to resist or narrow such request(s).
Notwithstanding the foregoing, if disclosure of such
Confidential Information is required by law, the Non-Disclosing
Party will (i) furnish only that portion of the
Confidential Information which, in the reasonable opinion of the
Non-Disclosing Party’s counsel, after consultation with the
Disclosing Party’s counsel, it is legally obligated to
disclose, and (ii) use its best efforts to obtain an order
or other reliable assurances that confidential, non-public
treatment will be accorded to all such disclosed Confidential
Information.
(f) Employees, Agents, Representatives,
Etc. For purposes of this
Section 9.1, any Confidential Information received
by any director, officer, member, manager, partner, employee,
agent, subcontractor, advisor or representative of the
Non-Disclosing Party pursuant to the terms and conditions of
this Agreement shall be deemed received by the Non-Disclosing
Party and any breach by such persons of this
Section 9.1 shall be deemed a breach by the
Non-Disclosing Party of this Agreement.
9.2 Enforcement. The
Non-Disclosing Party expressly acknowledges and agrees that the
restrictions contained herein are reasonable in terms of
duration and scope restrictions and are necessary to protect the
Confidential Information and the goodwill of the business of the
Disclosing Party, and the Non-Disclosing Party agrees that it
shall not challenge the validity or enforceability of the
restrictions contained herein. The Non-Disclosing Party agrees
that money damages would not be an adequate remedy for any
breach of this Article IX. Therefore, in the
event of a breach or threatened breach of the provisions of this
Article IX by the Non-Disclosing Party, the
Disclosing Party may, in addition to other rights and remedies
existing in its favor, apply to any court of competent
jurisdiction for specific performance
and/or
injunctive or other relief in order to enforce or prevent any
violation of the provisions of this Article IX
(without proving monetary damages or posting a bond or other
security).
ARTICLE X
REPRESENTATIONS
AND WARRANTIES OF ROCKWELL
Rockwell hereby represents and warrants to DaVita as follows:
10.1 Standing and
Authority. Rockwell has the requisite
corporate power, right and authority to enter into this
Agreement and to consummate the transactions contemplated
hereby. Rockwell’s execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby
have been duly and validly authorized by all necessary corporate
action on the part of Rockwell.
10.2 Execution; Delivery; Binding
Effect. This Agreement has been duly executed
and delivered by Rockwell, and constitutes the legal, valid and
binding obligation of Rockwell, enforceable against Rockwell in
accordance with its terms.
10.3 No Conflicts. Neither the
execution, delivery or performance of this Agreement by Rockwell
nor the consummation of the transactions contemplated in this
Agreement, shall (a) conflict with, contravene or result in
a breach of any statute or administrative regulation, or of any
law, rule, regulation, ordinance, order, writ, injunction,
judgment, or decree of any Governmental Authority or of any
arbitration award to which Rockwell is a party or by which any
of the properties or assets of Rockwell are or may be bound; or
(b) conflict with, contravene or violate any agreement,
understanding or arrangement to which Rockwell is a party or by
which any of the properties or assets of Rockwell are or may be
bound.
10.4 Title. Rockwell possesses
good and marketable title to all of the Products free and clear
of any and all liens, mortgages, charges, security interests,
pledges or other encumbrances or adverse claims of any nature,
whether arising by agreement, operation of law or otherwise
(collectively, “Liens”).
9
Rockwell has the right
to convey and in connection with the transactions contemplated
by this Agreement will convey to DaVita
and/or the
DaVita Facilities, as applicable, good and marketable title to
all of the Products acquired hereunder, free and clear of any
and all Liens.
10.5 Licenses, Permits, and Compliance with
Laws. Rockwell has all rights, licenses,
permits and consents necessary to sell the Products to DaVita
and the DaVita Facilities and to perform its obligations
hereunder during the Term. Rockwell is and has at all times been
in and during the Term shall be in compliance with all federal,
state and local laws, statutes, rules, and regulations
applicable to its business and the performance of its
obligations under this Agreement. No Product delivered hereunder
during the Term is or will be adulterated or misbranded within
the meaning of the FFDCA, or within the meaning of any
applicable state or municipal law, or is or will be a product
which may not be introduced into interstate commerce. During the
Term, Rockwell shall immediately inform DaVita following its
receipt of any information which states that the integrity or
legal status of any Product provided hereunder has been called
into question by any retailer, wholesaler, or state or federal
authority, or that any Product sold to DaVita or any DaVita
Facility hereunder is suspected of being counterfeit, stolen,
adulterated, misbranded or otherwise an unlawful product and
shall provide DaVita with prompt written confirmation of any
such event, including copies of any and all documents related
thereto. DaVita’s and the DaVita Facilities’ use of
the Products in accordance with their intended use shall not
infringe upon any ownership rights of any other Person or upon
any patent, copyright, trademark, or other intellectual property
or proprietary right or trade secret of any third party.
10.6 Products. Each Product
purchased during the Term
[*
*]
10.7 Expired Product. Rockwell
will use its best efforts not to ship to DaVita or any DaVita
Facility expired Product
[*
*]
10.8 Health Care
Programs. Rockwell is not currently
(a) named on any of the following lists
(i) HHS/OIG
List of Excluded Individuals/Entities, (ii) GSA List of
Parties Excluded from Federal Programs or (iii) OFAC
“SDN and Blocked Individuals” and (b) under
investigation or otherwise aware of any circumstances which
would result in Rockwell being excluded from participation in
any federal health care program, as defined under 42 U.S.C.
§ 1320a-7b(f).
All warranties granted or assigned under this
Article X will continue in full force and effect
notwithstanding transfer of title to any Product to or by DaVita
or any DaVita Facility to any other
10
DaVita Facility. All
warranties granted under this Agreement shall survive
inspection, acceptance and payment of the Products.
ARTICLE XI
REPRESENTATIONS
AND WARRANTIES OF DAVITA
DaVita hereby represents and warrants to Rockwell as follows:
11.1 Standing and
Authority. DaVita has the requisite corporate
power, right and authority to enter into this Agreement and to
consummate the transactions contemplated hereby. DaVita’s
execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby have been duly and validly
authorized by all necessary corporate action on the part of
DaVita.
11.2 Execution; Delivery; Binding
Effect. This Agreement has been duly executed
and delivered by DaVita, and constitutes the legal, valid and
binding obligation of DaVita, enforceable against DaVita in
accordance with its terms.
11.3 No Conflicts. Neither the
execution, delivery or performance of this Agreement by DaVita
nor the consummation of the transactions contemplated in this
Agreement, shall (a) conflict with, contravene or result in
a breach of any statute or administrative regulation, or of any
law, rule, regulation, ordinance, order, writ, injunction,
judgment, decree of any Governmental Authority or of any
arbitration award to which DaVita is a party or by which any of
the properties or assets of DaVita are or may be bound; or
(b) conflict with, contravene or violate any provision of
any agreement, understanding or arrangement to which DaVita is a
party or by which any of the properties or assets of DaVita are
or may be bound.
11.4 Compliance with Laws. DaVita
has all rights, licenses, permits and consents necessary to
perform its obligations hereunder during the Term. DaVita is and
has at all times been in and during the Term shall be in
compliance with all federal, state and local laws, statutes,
rules, and regulations applicable to its business and the
performance of its obligations under this Agreement.
11.5 Health Care Programs. DaVita
is not currently (a) named on any of the following lists
(i) HHS/OIG List of Excluded Individuals/Entities,
(ii) GSA List of Parties Excluded from Federal Programs or
(iii) OFAC “SDN and Blocked Individuals” and
(b) under investigation or otherwise aware of any
circumstances which would result in DaVita being excluded from
participation in any federal health care program, as defined
under 42 U.S.C.
§ 1320a-7b(f).
ARTICLE XII
INDEMNIFICATION
AND INSURANCE
12.1 Indemnification of
DaVita. Rockwell agrees to defend, indemnify
and hold DaVita, its Affiliates and the DaVita Facilities and
each of their respective directors, officers, members, managers,
partners, employees and agents (collectively, the
“DaVita Indemnitees”) harmless from and against
any and all causes of action (at law or in equity), actions,
claims, costs, suits, liabilities, judgments, settlements,
demands, losses, damages, proceedings
and/or
expenses of all kinds (including reasonable attorneys’
fees, witnesses’ fees, investigation expenses, and any
other expenses incident thereto) (collectively,
“Losses”) that the DaVita Indemnitees may
sustain or incur as a result of
[*
11
*]
12.2 Indemnification of
Rockwell. DaVita agrees to defend, indemnify
and hold Rockwell and its Affiliates and each of their
respective directors, officers, members, managers, partners,
employees and agents (collectively, the “Rockwell
Indemnitees”) harmless from and against any and all
Losses that the Rockwell Indemnitees may sustain or incur as a
result of
[*
*]
12.3 Indemnification Procedure for Third Party
Claims. If any DaVita Indemnitee or any
Rockwell Indemnitee entitled to indemnification under this
Article XII (the “Indemnified
Party”) receives notice of the assertion of any claim,
or the commencement of any suit, action or proceeding by any
Person who is not a party hereto or an Affiliate of a party
hereto (a “Third Party Claim”) against such
Indemnified Party, the Indemnified Party shall give written
notice regarding such Third Party Claim to the party hereto that
is required to provide indemnification under this
Article XII (the “Indemnifying
Party”) within
[* *]
after learning of such Third Party Claim. The Indemnifying Party
shall have the right, upon written notice to the Indemnified
Party (the “Defense Notice”) within
[* *]
after receipt from the Indemnified Party of notice of such Third
Party Claim, which Defense Notice by the Indemnifying Party
shall specify the counsel it will appoint to defend such Third
Party Claim (“Defense Counsel”), to conduct at
its expense the defense against such Third Party Claim in its
own name, or if necessary in the name of the Indemnified Party;
provided, however, that: (a) the Indemnified
Party shall have the right to approve the Defense Counsel, which
approval shall not be unreasonably withheld, conditioned or
delayed by the Indemnified Party and (b) as a condition
precedent to the Indemnifying Party’s right to assume
control of such defense, the Indemnifying Party must first enter
into an agreement with the Indemnified Party (in form and
substance reasonably satisfactory to the Indemnified Party)
pursuant to which the Indemnifying Party agrees to be fully
responsible for any and all Losses relating to such suit Third
Party Claim and
unconditionally guarantees the payment and performance of any
and all Losses which may arise with respect to such Third Party
Claim, subject to the terms and conditions set forth in this
Section 12. The Indemnifying Party shall not
have the right to assume control of, but may participate in, and
the Indemnified Party shall have the sole right to assume
control of any Third Party Claim which: (i) seeks a
temporary restraining order, a preliminary or permanent
injunction or specific performance against the Indemnified
Party, (ii) involves criminal or quasi-criminal allegations
against the Indemnified Party, (iii) if unsuccessful would
set a precedent that would materially interfere with, or have a
material adverse effect on, the business or financial condition
of the Indemnified Party, or (iv) imposes liability in the
part of the Indemnified Party for which the Indemnified Party is
not entitled to indemnification under this
Article XII. If the Indemnifying Party is
permitted to assume and control the defense of any Third Party
Claim and elects to do so, the Indemnified Party shall have the
right to employ counsel separate from counsel employed by the
Indemnifying Party in any such Third Party Claim and to
participate in the defense thereof, but the fees and expenses of
such counsel employed by the Indemnified Party shall be at the
expense of the Indemnified Party unless (A) the employment
thereof has been specifically authorized by the Indemnifying
Party in writing, (V) the Indemnified Party has been
advised by counsel that a reasonable likelihood exists of a
conflict of interest between the Indemnifying Party and
12
the
Indemnified Party, or (C) the Indemnifying Party has failed
to assume the defense and employ counsel, in which case the fees
and expenses of the Indemnified Party’s counsel shall be
paid by the Indemnifying Party. No Indemnifying Party shall
consent to the entry of any judgment or enter into any
settlement of any Third Party Claim without the prior written
consent of the Indemnified Party if (w) such judgment or
settlement would lead to liability or create any financial or
other obligation on the part of the Indemnified Party for which
the Indemnified Party is not entitled to indemnification
hereunder, (x) such judgment or settlement would result in
the finding or admission of any violation of any federal, state
or local law, statute, ordinance or regulation, (y) such
judgment or settlement does not include as an unconditional term
thereof the giving by each claimant or plaintiff to each
Indemnified Party of a release from all liability in respect to
such Third Party Claim, or (z) as a result of such judgment
or settlement, injunctive or other equitable relief would be
imposed against the Indemnified Party. In the event that the
Indemnifying Party fails to give the Defense Notice within
[* *]
of receiving notice of such Third Party Claim from the
Indemnified Party, it shall be deemed to have elected not to
conduct the defense of such Third Party Claim, or in the event
the Indemnifying Party does deliver a Defense Notice within
[* *]
of receiving notice of such Third Party Claim from the
Indemnified Party and thereby elects to not conduct the defense
of such Third Party Claim, then in either such event the
Indemnified Party shall have the right to conduct and control
the defense of such Third Party Claim in good faith and to
compromise and settle such Third Party Claim or consent to the
entry of a judgment of such Third Party Claim in good faith
without the prior consent of the Indemnifying Party. A failure
by the Indemnified Party to give timely, complete or accurate
notice as provided in this Section 12.3 will not
affect the rights or obligations of the Indemnifying Party
except and only to the extent that, as a result of such failure,
the Indemnifying Party entitled to receive such notice was
deprived of its right to recover any payment under its
applicable insurance coverage or was otherwise directly and
materially damaged as a result of such failure to give timely
notice.
12.4 Indemnification Procedure for Direct
Claims. In the event the Indemnified Party
should have a claim against the Indemnifying Party hereunder
which does not involve a Third Party Claim (a “Direct
Claim”), such Indemnified Party shall transmit to the
Indemnifying Party a written notice (the “Direct
Indemnification Notice”) containing an estimate of the
amount of damages attributable to such Direct Claim and the
basis of such Indemnified Party’s request for
indemnification under this Article XII within
[* *]
after learning of such Direct Claim. If the Indemnifying Party
does not notify such Indemnified Party in writing within
[* *]
from its receipt of the Direct Indemnification Notice that the
Indemnifying Party disputes the Direct Claim set forth in such
Direct Indemnification Notice, the Direct Claim specified by
such Indemnified Party in such Direct Indemnification Notice
shall be deemed a liability of the Indemnifying Party hereunder.
If the Indemnifying Party has timely disputed the Direct Claim
set forth in such Direct Indemnification Notice, as provided in
this Section 12.4, such Direct Claim set forth in
such Direct Indemnification Notice shall be resolved by
litigation.
12.5 [*
*]
13
ARTICLE XIII
RECALL
In the event the FDA initiates a mandatory recall (i.e. the
correction or removal of a Product) or Rockwell believes in its
sole discretion that it may be necessary to conduct a recall
(i.e. the correction or removal of a Product), field market
withdrawal, stock recovery, or other similar action with respect
to any of the Products (a “Recall”), Rockwell
shall immediately notify DaVita of such Recall.
[*
*]
*]
ARTICLE XIV
OPEN
RECORDS AND DISCOUNTS
14.1 Open Records. To the extent
required by § 1861(v)(1)(I) of the Social Security
Act, the parties hereto will allow the U.S. Department of
Health and Human Services, the U.S. Comptroller General,
and their duly authorized representatives, access to this
Agreement and any records necessary to verify the nature and
extent of costs incurred pursuant to this Agreement during the
Term and for four (4) years following the last date any
Products are furnished by Rockwell to DaVita or any DaVita
Facility under this Agreement. If Rockwell carries out its
obligations under this Agreement through a subcontract worth Ten
Thousand Dollars ($10,000) or more over a twelve (12) month
period with a related
14
organization, the subcontract shall also
contain an access clause to permit access by the
U.S. Department of Health and Human Services, the
U.S. Comptroller General, and their duly authorized
representatives to the related organization’s books and
records. Nothing in this Section 14.1 is intended to
waive any right either party hereto may have under any
applicable laws or regulations to retain in confidence
information included in records so requested.
14.2 Discounts. Any discounts,
rebates, incentives,
and/or other
reductions in price issued by Rockwell to DaVita
and/or any
DaVita Facility under this Agreement may constitute a discount
within the meaning of 42 U.S.C.
§ 1320a-7b(b)(3)(A).
DaVita and the DaVita Facilities may have an obligation to
properly disclose and appropriately reflect any such discounts,
rebates, incentives
and/or other
reductions in price to any state or federal program that
provides cost or charge based reimbursement to DaVita
and/or any
such DaVita Facility for the items to which such discounts,
rebates, incentives
and/or other
reductions in price apply. In order to assist DaVita’s and
the DaVita Facilities’ compliance with any such
obligations, Rockwell agrees that it shall fully and accurately
report all discounts, rebates, incentives
and/or other
reductions in price on the invoices, coupons or statements
submitted to DaVita or any DaVita Facility and inform DaVita
and/or any
such DaVita Facility of their obligations to report such
discounts, rebates, incentives
and/or other
reductions in price. In the event the value of any discounts,
rebates, incentives
and/or other
reductions in price are not known at the time of sale, Rockwell
shall fully and accurately report the existence of such
discounts, rebates, incentives
and/or other
reductions in price on the invoices, coupons or statements
submitted to DaVita
and/or any
DaVita Facility, inform DaVita
and/or any
DaVita Facility of their obligations to report such discounts,
rebates, incentives
and/or other
reductions in price, and when the value of such discounts,
rebates, incentives
and/or other
reductions in price becomes known, provide DaVita
and/or any
DaVita Facility with documentation of the calculation of such
discounts, rebates, incentives
and/or other
reductions in price and identifying the specific Products
purchased to which such discounts, rebates, incentives
and/or other
reductions in price will be applied. Rockwell shall also provide
to DaVita
and/or any
DaVita Facility any other information that DaVita
and/or any
DaVita Facility may request that is necessary for them to obtain
in order to comply with any such obligations, and Rockwell shall
refrain from doing anything which would impede DaVita
and/or any
DaVita Facility from meeting their obligations under this
Section 14.2 or any Medicare regulation.
ARTICLE XV
ACCESS
AND POLICIES AND PROCEDURES
Rockwell acknowledges and agrees that (a) DaVita has
informed Rockwell that copies of all of DaVita’s applicable
vendor relations policies and procedures (the “Policies
and Procedures”) that will be in effect during the Term
will be available for viewing by Rockwell during the Term by
going to:
xxxx://xxx.xxxxxx.xxx/xxxxx/xxxxxxx/?xxx0000
and (b) Rockwell shall abide by all such Policies and
Procedures during the Term. Rockwell understands and agrees that it must obtain DaVita’s prior
written approval of all proposed educational, marketing and
promotional materials and of all presentations made by Rockwell
relating to any of the Products or any other Rockwell products,
which approval may only be given in writing by DaVita’s
Vice President, Clinical Operations or his authorized
representative. DaVita’s Vice President, Clinical
Operations or his authorized representative agrees to notify
Rockwell of his decision within
[* *]
following receipt of such request; otherwise, such request will
be deemed denied. No personnel or agent of Rockwell shall be
permitted to access any DaVita Facility without the prior
written consent of DaVita’s Vice President, Clinical
Operations or his authorized representative.
15
ARTICLE XVI
AUDIT
If DaVita disagrees with any computation or statement delivered
by Rockwell to DaVita or any DaVita Facility under this
Agreement, DaVita may, within
[* *]
after the receipt of such computation or statement, audit any
such computation or statement. DaVita shall conduct any such
audit during such times as may be mutually agreed to by the
parties hereto. In the event that DaVita’s audit results in
a number different from that set forth in the computation or
statement delivered by Rockwell to DaVita or any DaVita
Facility, DaVita shall deliver a written notice (an
“Objection Notice”) to Rockwell setting forth
in reasonable detail any and all items of disagreement related
to such computation or statement. If DaVita does not deliver an
Objection Notice within such
[* *]
period, the calculations set forth in any such computation or
statement shall be deemed final, conclusive and binding on the
parties hereto. Rockwell and DaVita will use their commercially
reasonable efforts to resolve any disagreements relating to any
computation or statement, but if they do not obtain a final
resolution within
[* *]
after Rockwell has received the Objection Notice, then either
Rockwell or DaVita may refer the items in dispute to a
nationally recognized firm of independent public accounts as to
which DaVita and Rockwell mutually agree (the
“Firm”), to resolve any remaining
disagreements. Rockwell and DaVita will direct the Firm to
render a determination within
[* *]
of its retention, and Rockwell and DaVita and their respective
agents and employees will cooperate with the Firm during its
engagement. The determination of the Firm will be conclusive and
binding upon DaVita and Rockwell, and DaVita or Rockwell, as
applicable, will make any payment owed to other party hereto
within
[* *]
of the Firm’s determination. The Firm shall execute a
confidentiality agreement in a form reasonably acceptable to
Rockwell and DaVita.
[*
*]
*]
ARTICLE XVII
ADDITIONAL
ACKNOWLEDGEMENTS AND AGREEMENTS OF THE PARTIES
17.1 [*
*]
*]
17.2 Business Model
Change. [*
16
*]
17.3 Mixer
Training. [* *]
complete and appropriate training regarding the use and
maintenance of the
Dri-Sate®
Acid Mixer
[*
*].
17.4 [*
*]
*]
ARTICLE XVIII
CERTAIN
DEFINED TERMS
The following terms as used herein have the following meaning:
“Affiliate” means, with respect to a
Person, any Person that, directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under
common control with, such Person.
“Business Day” means a day other than
Saturday, Sunday or a public holiday on which banks are
authorized or required to be closed under the laws of the State
of California.
“Commercially Available” means any
product that is approved by the FDA and manufactured, utilized,
sold or distributed anywhere in the United States by Rockwell
and/or any
of its Affiliates.
“Confidential Information” means
information not generally known outside the disclosing party
and/or any
of its Affiliates (collectively, the “Disclosing
Party”) (unless as a result of a breach of any of the
non-disclosing party’s
and/or any
of its Affiliates’(collectively, the
“Non-Disclosing Party’s”) obligations
imposed by this Agreement) or which is identified as
confidential by the Disclosing Party to the Non-Disclosing Party
concerning the Disclosing Party’s business and technical
information, whether in written, computerized, oral, tangible or
intangible or other form, including: (a) the terms and
provisions of this Agreement, (b) any and all trade secrets
concerning the business, customers and affairs of the Disclosing
Party, product specifications, data, know-how, formulae,
compositions, processes, designs, sketches, photographs, graphs,
drawings, samples, inventions and ideas, past, current and
planned research and development, current and planned
manufacturing and distribution methods and processes, customer
lists, current and anticipated customer requirements, price
lists, market studies, business plans, clinical practices and
patient protocols, computer software and programs (including
object code and source code), database technologies, systems,
improvements, devices, discoveries, concepts, methods, and
information of the Disclosing Party and any other information of
the Disclosing Party, however documented, that is a trade secret
under applicable law, (c) any and all information
concerning the business and affairs of the Disclosing Party,
including historical financial statements, financial projections
and budgets, rebates, discounts, payment terms, pricing,
historical and projected sales, capital spending
17
budgets and
plans, contractual arrangements, the names and background of key
personnel, contractors, agents, customers, suppliers and
potential suppliers, personnel training and techniques and
materials, purchasing methods and techniques, however
documented, (d) the names and addresses, records and charts
and any other information concerning the Disclosing Party’s
patients, and (e) any and all notes, analysis compilations,
studies, summaries and other materials prepared by or for the
Disclosing Party containing or based, in whole or in part, upon
any information included in the foregoing.
“FDA” means the United States Food and
Drug Administration and any successor thereto.
“FFDCA” means the United States Federal
Food, Drug and Cosmetic Act of 1938 and all regulations
promulgated thereunder.
“Governmental Authority” means any
multi-national, national, state, provincial, local,
governmental, judicial, public, quasi-public, administrative,
regulatory or self-regulatory authority, agency, commission,
board, organization or instrumentality.
“Person” means any individual or any
group of individuals or any general partnership, limited
partnership, limited liability partnership, limited liability
company, professional limited liability company, corporation,
joint venture, trust, business trust, cooperative or association
or any other organization that is not a natural person and any
combination of any such entity or organization and any natural
persons acting in concert, and the heirs, executors,
administrators, legal representatives, successors and assigns of
any “person” where the context so permits.
“Sale of DaVita” means any transaction
or series of transactions pursuant to which any Person or group
of related Persons in the aggregate acquire(s)
(a) securities of DaVita possessing the voting power to
elect a majority of DaVita’s board of directors (whether by
merger, consolidation, reorganization, combination, sale or
transfer of DaVita’s securities, securityholder or voting
agreement, proxy, power of attorney or otherwise) or
(b) all or substantially all of DaVita’s assets.
“Sale of Rockwell” means any transaction
or series of transactions pursuant to which any Person or group
of related Persons in the aggregate acquire(s)
(a) securities of Rockwell possessing the voting power to
elect a majority of Rockwell’s board of directors (whether
by merger, consolidation, reorganization, combination, sale or
transfer of Rockwell’s securities, securityholder or voting
agreement, proxy, power of attorney or otherwise) or
(b) all or substantially all of Rockwell’s assets.
“Transfer” means (a) any Sale of
Rockwell, (b) Sale of DaVita, or (c) any sale,
transfer, assignment, pledge, mortgage, exchange, hypothecation,
grant of a security interest or other direct or indirect
disposition or encumbrance of an interest (including by
operation of law) or the rights thereof. The term
“Transferred,” and other forms of the word
“Transfer” shall have correlative meanings.
ARTICLE XIX
MISCELLANEOUS
19.1 Entire Agreement;
Amendments. This Agreement, including its
recitals and exhibits, constitutes the entire agreement between
the parties hereto and supersedes any and all prior
representations, warranties, statements, promises, agreements
and understandings between the parties hereto, whether oral or
written, relating to the subject matter hereof, and no party
hereto shall be bound by
18
nor charged with any written or oral
representations, warranties, statements, promises, agreements
and understandings not specifically set forth in this Agreement.
No amendments or modifications of the terms of this Agreement,
including any conflicting or additional terms contained in any
sales order, purchase order, acknowledgment form, or other
written document submitted by either party hereto, shall be
binding on either party hereto unless reduced to writing and
signed by a duly authorized representative of each party hereto.
19.2 Notices. All notices given
pursuant to this Agreement shall be sent by: (a) certified
mail, return receipt requested, in which case notice will be
deemed delivered three (3) Business Days after deposit,
postage prepaid in the United States mail; (b) a nationally
recognized overnight courier, in which case notice will be
deemed delivered one (1) Business Day after deposit with
such courier; or (c) personal delivery. Addresses of the
parties hereto are as follows:
To Rockwell:
|
Rockwell Medical Technologies, Inc. 00000 Xxxxx Xxxx Xxxxx, Xxxxxxxx 00000 Attention: Chief Executive Officer |
|
To DaVita:
|
DaVita Inc. 00000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxxx 00000 Attention: Vice-President of Purchasing |
|
With a copy to:
|
DaVita Inc. 000 Xxxxxx Xxxxxx Xx Xxxxxxx, Xxxxxxxxxx 00000 Attention: General Counsel |
The above addresses may be changed by written notice to the
other party hereto, provided that no notice of a
change of address will be effective until actual receipt of such
notice.
19.3 Choice of Law. All issues and
questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware,
without giving effect to any choice of law or conflict of law
rules or provisions (whether of the State of Delaware or any
other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the laws of the State of Delaware.
19.4 WAIVER OF JURY TRIAL. EACH OF
THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT
TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS OR EVENTS CONTEMPLATED HEREBY OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN)
OR ACTIONS OF ANY PARTY HERETO. THE PARTIES HERETO EACH AGREE
THAT ANY AND ALL SUCH CLAIMS AND CAUSES OF ACTION SHALL BE TRIED
BY THE COURT WITHOUT A JURY. EACH OF THE PARTIES HERETO FURTHER
WAIVES ANY RIGHT TO SEEK TO CONSOLIDATE ANY SUCH LEGAL
PROCEEDING IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER
LEGAL PROCEEDINGS IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN
WAIVED.
19
19.5 Attorneys Fees. In the event
of any legal proceeding between the parties hereto with respect
to this Agreement, the enforceability of any of its provisions
or any alleged or actual breach of this Agreement by any party
hereto, the prevailing party shall be entitled to recover
reasonable attorney’s fees and all other costs and expenses
incurred in connection with pursuing any action with respect
thereto, in addition to any other relief to which such
party may be entitled. The term “prevailing party”
shall mean with respect to each claim asserted in a complaint
the party in whose favor final judgment after appeal (if any) is
rendered with respect to such claim asserted in the complaint.
19.6 Non-Limitation of Rights and
Remedies. Except as otherwise expressly
provided herein, the various rights and remedies provided herein
shall be cumulative and in addition to any other rights and
remedies the parties hereto may be entitled to pursue at law or
equity. The exercise of one or more of such rights or remedies
shall not impair the right of either party hereto to exercise
any other right or remedy at law or equity.
19.7 Waiver. No waiver by any
party hereto, whether express or implied, of its rights under
any provision hereto shall constitute a waiver of the
party’s rights under such provisions at any other time or a
waiver of the party’s rights under any other provision
hereto. No failure by any party hereto to take any action
against any breach of this Agreement or default by another party
hereto shall constitute a waiver of the former party’s
right to enforce any provision of this Agreement or to take
action against such breach or default or any subsequent breach
or default by the other party hereto. To be effective any waiver
must be in writing and signed by the waiving party.
19.8 Severability. In the event
any provision of this Agreement shall be held to be invalid or
unenforceable in any respect, such provision shall be enforced
to the fullest extent permitted by law and the remaining
provisions of this Agreement shall remain in full force and
effect. If any such invalid portion constitutes a material term
of this Agreement, the parties hereto shall meet and in good
faith seek to mutually agree to modify this Agreement so as to
retain, if possible, the overall essential terms of this
Agreement.
19.9 Conflicts. To the extent that
any provision of any sales order, purchase order, invoice, or
any other document, or the terms of any of Rockwell’s
general policies, terms and conditions, procedures or catalogs,
conflict with or alter any term of this Agreement, this
Agreement shall govern and control.
19.10 Assignment and
Transfer. This Agreement will be binding upon
and inure to the benefit of the parties hereto. This Agreement
may not be Transferred by any party hereto without the prior
written consent of the other party hereto; provided
however that nothing in this Agreement shall or is
intended to limit the ability of DaVita to Transfer this
Agreement, in whole or in part, without the consent of Rockwell
to: (a) any Affiliate of DaVita; (b) any buyer in
connection with a Sale of DaVita; or (c) any lenders of
DaVita as collateral for borrowings.
19.11 Relationship of the
Parties. This Agreement is not intended to
create and shall not be construed as creating between Rockwell
and DaVita the relationship of Affiliate, principal and agent,
joint venture, partnership, or any other similar relationship,
the existence of which is hereby expressly denied. Neither party
hereto shall have (nor shall it hold itself out as having) any
right, power or authority to make or incur any legally binding
agreement, obligation, representation, warranty or commitment on
behalf of the other party hereto or to direct any action of, or
activity by the other party hereto or any of its officers,
directors, members, managers, employees or agents.
19.12 Counterparts; Facsimile/PDF
Signatures. This Agreement may be executed in
any number of counterparts and any party hereto may execute any
such counterpart, each of which when
20
executed and delivered
shall be deemed to be an original and all of which counterparts
taken together shall constitute but one and the same instrument.
This Agreement shall become binding when one or more
counterparts taken together shall have been executed and
delivered by each of the parties hereto. It shall not be
necessary in making proof of this Agreement or any counterpart
hereof to produce or account for any of the other counterparts.
The parties hereto agree that facsimile transmission or PDF of
original signatures shall constitute and be accepted as original
signatures.
19.13
Headings and
Interpretation. All Section and Article
headings contained in this Agreement are for convenience of
reference only, do not form a part of this Agreement and shall
not affect in any way the meaning or interpretation of this
Agreement. Words used herein, regardless of the number and
gender specifically used, shall be deemed and construed to
include any other number, singular or plural, and any other
gender, masculine, feminine, or neuter as the context requires.
The words “include”, “includes” and
“including”, and words of similar import, shall be
deemed to be followed by the phrase “without
limitation”. Unless the context expressly by its terms
requires otherwise, (a) any reference to any law herein
shall be construed as referring to such law as from time to time
enacted, repealed or amended, (ii) any reference herein to
any Person shall be construed to include such Person’s
permitted successors and assigns, (iii) the words
“herein”, “hereof” and
“hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to
any particular provision hereof, and (iv) all references herein to Sections, Articles, or Exhibits shall be
construed to refer to Sections, Articles, or Exhibits of this
Agreement.
19.14 Joint Preparation. Each
party hereto: (a) has participated in the preparation of
this Agreement; (b) has read and understands this
Agreement; and (c) has been represented by counsel of its
own choice in the negotiation and preparation of this Agreement.
Each party hereto represents that this Agreement is executed
voluntarily and should not be construed against any party hereto
solely because it drafted all or a portion hereof.
19.15 Time of
Essence. Rockwell’s obligation to meet
the delivery dates or any other time periods set forth herein is
of the essence.
19.16 Survival. Notwithstanding
anything to the contrary that may be contained elsewhere in this
Agreement, this Article XIX and
Articles II, VI, IX, X,
XI, XII and XIII shall survive, and remain
in full force and effect, following the expiration or
termination of this Agreement for any reason.
19.17 Business Day. If any payment
is due, or any time period for giving notice or taking action
expires, on a day that is not a Business Day, the payment shall
be due and payable on, and the time period for giving such
notice or taking such action shall automatically be extended to,
the next succeeding Business Day.
19.18 Public Announcements. Except
as otherwise required pursuant to any applicable federal or
state securities laws or stock listing requirements, no party
hereto shall make any public announcement of any kind or any
filing with respect to the other party hereto or any of the
transactions provided for herein without the prior written
consent of the other party hereto. Except as otherwise required
pursuant to any applicable federal or state securities laws or
stock listing requirements, any press release or other
announcement or notice regarding the other party hereto or any
of the transactions contemplated by this Agreement shall be by
joint press release mutually agreed to in writing by the parties
hereto.
[SIGNATURE
PAGE FOLLOWS]
21
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be effective as of the Effective Date.
ROCKWELL:
|
DAVITA: | |
ROCKWELL MEDICAL TECHNOLOGIES, INC.
|
DAVITA INC. | |
By:
/s/ Xxx
Xxxxxxx |
By:
/s/ XxXxx
Xxxxxxx |
|
Print Name: Xxx Xxxxxxx
|
Print Name: XxXxx Xxxxxxx
|
|
Title: CEO
|
Title: VP
|
|
Time of Signature: 2/16/11 3:40 p.m.
|
Time of Signature: 2/16/11
|
|
Approved as to form: | ||
DAVITA INC. | ||
By:
/s/ Xxx
Xxxxxxx |
||
Print Name: Xxx Xxxxxxx
|
||
Title: Deputy General Counsel
|
[SIGNATURE
PAGE TO PRODUCTS PURCHASE AGREEMENT]
EXHIBIT A
PRODUCTS
AND PURCHASE PRICE
See attached.
A-1
EXHIBIT A; 2011
Price
Quote Standard Formulas
CATALOG # | DESCRIPTION | PACKAGING | UNIT | PRICE | ||||
[*
|
||||||||
*]
|
||||||||
NOTE:
• [*
*]
*]
• [*
*]
00000 Xxxxx
Xxxx x Xxxxx,
XX
00000 o (000) 000-0000 o Fax
(000) 000-0000 o (000) 000-0000
A-2
EXHIBIT B
[* *]
See attached.
B-1
EXHIBIT B; 2011
The purchase price for the Products as set forth on
Exhibit A is applicable in the following states:
[* *]
[* *]
[*
*]
00000 Xxxxx
Xxxx x Xxxxx,
XX
00000 o (000) 000-0000 o Fax
(000) 000-0000 o (000) 000-0000
B-2
EXHIBIT C
DAVITA
SHIPPING AND ORDER REQUIREMENTS
See attached.
C-1
EXHIBIT C;
2011
DAVITA
SHIPPING & ORDERING GUIDELINES
GENERAL GUIDELINES APPLICABLE TO ALL PRODUCTS
(DRI-SATE®
DRY ACID CONCENTRATE,
RENALPURE®
LIQUID ACID CONCENTRATE,
RENALPURE®
BICARBONATE POWDER,
STERILYTE®
LIQUID BICARBONATE,
CITRAPURE®
DRY ACID and LIQUID ACID CONCENTRATE and CLEANING AGENTS)
1. [* *]
2. [* *]
3. [* *]
4. [* *]
5. [* *]
6. [* *]
NOTE:
[* *]
SPECIFIC ADDITIONAL GUIDELINES FOR CERTAIN PRODUCTS
[* *]
00000 Xxxxx
Xxxx x Xxxxx,
XX
00000 o (000) 000-0000 o Fax
(000) 000-0000 o (000) 000-0000
C-2
EXHIBIT D
RETURN
GOODS POLICY
See Item 3 of Exhibit C.
D-1
EXHIBIT E
WARRANT
See attached.
E-1
THIS STOCK PURCHASE WARRANT HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS. IT MAY NOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE
OF REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED. THIS WARRANT IS ALSO SUBJECT TO THE RESTRICTIONS
ON TRANSFER SET FORTH IN SECTION 5 HEREOF.
WARRANT TO
PURCHASE SHARES
OF COMMON STOCK, NO PAR VALUE, OF
ROCKWELL MEDICAL TECHNOLOGIES, INC.
OF COMMON STOCK, NO PAR VALUE, OF
ROCKWELL MEDICAL TECHNOLOGIES, INC.
February 16, 2011
THIS STOCK PURCHASE WARRANT (“Warrant”) CERTIFIES
THAT, for value received, subject to the provisions hereinafter
set forth, DaVita Inc. (the “Holder”) is entitled to
purchase from Rockwell Medical Technologies, Inc., a Michigan
corporation, and its successors and assigns (the
“Company”) up to 100,000 shares (the
“Warrant Shares”) of common stock of the Company, no
par value (the “Common Stock”). This Warrant is the
“Warrant Agreement” issued in accordance with that
certain Products Purchase Agreement, dated as of
February 16, 2011, between the Company and Holder (the
“Agreement”). This Warrant is subject to the
provisions and adjustments, and exercise hereof is subject to
and will be made on the terms and conditions, hereinafter set
forth.
The following is a statement of the rights of the Holder of this
Warrant and the terms and conditions to which this Warrant is
subject, to which terms the Holder hereof, by acceptance of this
Warrant, assents.
1. | EXERCISE OF WARRANT |
(a) The Warrant shall become exercisable in full on the
first day immediately following the end of the Initial Term (as
defined in the Agreement) (the “Exercise Date”). The
exercise price for the Warrant Shares is $10.25 per share (the
“Exercise Price”). On and after the Exercise Date,
subject to the conditions set forth herein, this Warrant may be
exercised in whole at any time or in part from time to time
until the close of business on the Expiration Date (as defined
below) by the Holder by the surrender of this Warrant at the
principal office of the Company, accompanied by a signed notice
of exercise in the form attached hereto and payment to the
Company of the Exercise Price in the manner set forth below for
each of the Warrant Shares intended to be purchased. Such
payment shall be made by Holder to the Company in the form of
cash, a certified or cashier’s check or by means of the
cashless method described in Section 1(b) of this Warrant.
Notwithstanding any other provision in this Warrant to the
contrary, this Warrant shall not be deemed exercised until
payment in full of the applicable Exercise Price for the
E-2
Warrant
Shares to be purchased has been received by the Company as
specified in this Section 1. The Warrant will expire at the
earlier of (i) the close of business on the 90th day
immediately following the completion of the Initial Term (as
defined in the Agreement), or (ii) the termination of the
Agreement by the Company pursuant to Section 2.4 thereof
(the earlier of such dates being the “Expiration
Date”). If the Expiration Date shall occur prior to the
Exercise Date, the Warrant shall expire without becoming
exercisable.
(b) The Holder may exercise the Warrant by the surrender of
this Warrant at the principal office of the Company on or before
the Expiration Date together with a written notice of cashless
exercise, in which event the Company shall issue to the Holder
the number of shares of Common Stock determined as follows:
X = (Y x (A-B))/A
where:
X = the number of shares of Common Stock to be issued to the
Holder;
Y = the number of Warrant Shares with respect to which this
Warrant is being exercised;
A = the average of the high and low trading prices per share of
the Common Stock on the Nasdaq Stock Market for the five trading
days immediately preceding (but not including) the date of
exercise.
B = the Exercise Price (as adjusted to the date of such
calculation).
2. | ADJUSTMENTS |
(a) In the event the Company shall (i) pay a dividend
to the holders of Common Stock in shares of Common Stock,
(ii) subdivide its outstanding shares of Common Stock into
a greater number of shares, or (iii) combine its
outstanding shares of Common Stock into a smaller number of
shares, then (A) the number of Warrant Shares that, at such
time, remain available for purchase pursuant to this Warrant
(“Available Warrant Shares”) shall be adjusted so that
such amount is equal to the number of shares of Common Stock
which Holder would have owned immediately after such event had
the number of Available Warrant Shares immediately prior to the
occurrence of such event been owned on the record date for such
event and (B) the Exercise Price shall be adjusted by
multiplying the Exercise Price in effect immediately prior to
such event by a fraction (x) the numerator of which is the
total number of outstanding shares of Common Stock immediately
prior to such event, and (y) the denominator of which shall
be the total number of outstanding shares of Common Stock
immediately after such event. Such adjustment shall become
effective immediately after the opening of business on the day
following such record date or the day upon which such dividend,
subdivision or combination becomes effective.
(b) In the event the Company shall (i) issue by
reclassification of its Common Stock any shares of the Company
of any class or series, (ii) merge or consolidate with or
into another entity (other than a merger in which the Company is
the surviving entity and which does not result in any
reclassification of the outstanding shares of Common Stock),
(iii) sell or otherwise convey to another entity all or
substantially all of the assets of the
3
Company followed by the
distribution of the proceeds thereof to the shareholders of the
Company, or (iv) engage in a share exchange involving all
or substantially all of the stock of the Company, then the
Holder shall thereafter be entitled to receive upon the exercise
of this Warrant, instead of the Available Warrant Shares, the
consideration which the Holder would have owned immediately
after such event had the Available Warrant Shares been owned
immediately prior to the occurrence of such event.
(c) No adjustment shall be required unless such adjustment
would require an increase or decrease of at least one-tenth of a
share in the number of Warrant Shares, or at least one-tenth of
a cent in the Exercise Price; provided, however, that any
adjustment which by reason hereof is not required to be made
shall be carried forward and taken into account in any
subsequent adjustment.
(d) No fractional shares of Common Stock shall be issued
upon exercise of this Warrant. The number of shares issued shall
instead be rounded down to the nearest whole share and any
fractional share disregarded.
(e) In the event that, as a result of an adjustment made
pursuant to this Section 2, the Holder shall become
entitled to receive any shares of capital stock of the Company
other than shares of Common Stock, the number of such other
shares so receivable upon exercise of this Warrant shall be
subject thereafter to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the
provisions with respect to the Warrant Shares contained in this
Warrant.
(f) The Company shall not, by amendment of its Articles of
Incorporation or through any reorganization, recapitalization,
transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all of the
provisions of this Section 2.
3. | FULLY PAID STOCK |
The Company agrees that the Warrant Shares delivered upon
exercise of this Warrant as herein provided shall, at the time
of such delivery, be fully paid and non-assessable, and free
from all liens and charges with respect to the purchase thereof.
During the period within which this Warrant may be exercised for
Common Stock, the Company will at all times have authorized, and
hold in reserve for issuance upon exercise of this Warrant, a
sufficient number of shares of Common Stock to provide for the
exercise of this Warrant.
4. | LOST OR STOLEN WARRANTS |
In case this Warrant shall be mutilated, lost, stolen or
destroyed, the Company shall issue a new Warrant of like date,
tenor, and denomination and deliver the same in exchange and
substitution for and upon surrender and cancellation of any mutilated
4
Warrant, or in lieu of the lost,
stolen or destroyed Warrant, upon receipt of an indemnity
agreement or bond from Holder reasonably satisfactory to the
Company.
5. | ASSIGNMENT |
This Warrant may not be Transferred (as defined below) without
the prior written consent of the Company; provided, however,
that if the Agreement is Transferred in accordance with the
terms thereof, this Warrant may be Transferred to the transferee
of the Agreement. A “Transfer” means any sale,
transfer, assignment, pledge, mortgage, exchange, hypothecation,
grant of a security interest or other direct or indirect
disposition or encumbrance of an interest (including by
operation of law) or the rights thereof. The Company shall deem
and treat the Holder (or any successor holder to whom this
Warrant is Transferred in accordance with this
Section 5) as the absolute owner of this Warrant,
notwithstanding any notations of ownership or writing hereon
made by anyone other than the Company, for all purposes and
shall not be affected by any notice to the contrary. Any
attempted Transfer of this Warrant without compliance with this
Section 5 shall be null and void.
6. | SECURITIES MATTERS |
(a) Neither this Warrant nor the Warrant Shares have been
registered under the Securities Act of 1933, as amended (the
“Act”), or any applicable “Blue Sky” laws.
(b) By exercising this Warrant, Holder (or any successor
holder to whom this Warrant is Transferred in accordance with
Section 5) is deemed to represent and warrant to the
Company that (i) Holder is an “accredited
investor” as defined in Rule 501 of Regulation D
promulgated under the Act and was not organized for the purpose
of acquiring the Warrant or the Warrant Shares;
(ii) Holder’s financial condition is such that it is
able to bear the risk of holding the Warrant Shares for an
indefinite period of time and could afford a complete loss on
such investment; (iii) Holder has sufficient knowledge and
experience in investing in companies similar to the Company so
as to be able to evaluate the risks and merits of its investment
in the Company and has so evaluated the risks and merits of such
investment, understands that an investment in the Warrant Shares
involves a significant degree of risk, including a risk of total
loss of Holder’s investment, and understands the risk
factors included, or that may be included in the future, in the
Company’s periodic reports filed from time to time with the
Securities and Exchange Commission; (iv) Holder
acknowledges that the Company has made available copies of its
annual, quarterly and other reports and documents filed with the
Securities and Exchange Commission pursuant to
Sections 13(a), 14(a), 14(c) and 15(d) of the Securities
Exchange Act of 1934, as amended, and the information
incorporated in such reports and documents by reference, and
acknowledges that, a reasonable time before Holder’s
exercise of the Warrant, it has reviewed such reports and
documents, has had the opportunity to ask questions about the
Company and the Warrant Shares, that such questions have been
answered to Holder’s satisfaction, and that it has obtained
all other information with respect to an investment in the
Warrant Shares that it has requested from the Company; and
(v) Holder is acquiring the Warrant Shares for its own
account for investment and not for resale or with a view to
distribution thereof in
5
violation of the Securities Act of 1933.
Except to the extent that the sale of the Warrant Shares by the
Company upon exercise of the Warrant has been registered under
the Act, each and every certificate representing Warrant Shares
delivered upon exercise of this Warrant shall bear the following
legend:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS. SUCH SECURITIES MAY NOT BE OFFERED, SOLD OR TRANSFERRED IN
THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.
(c) Anything to the contrary herein notwithstanding, the
Company’s obligation to sell and deliver Common Stock
pursuant to the exercise of this Warrant is subject to its
receipt of satisfactory assurance that the issuance of such
shares shall not violate any of the provisions of the Act or the
rules and regulations of the Securities and Exchange Commission
promulgated thereunder. No Warrant Shares shall be issued until
counsel for the Company has determined that the Company has
complied with all requirements under applicable securities laws.
7. | NO RIGHTS AS SHAREHOLDER |
Nothing contained in this Warrant shall be construed as
conferring upon the Holder any rights as a shareholder of the
Company.
8. | MISCELLANEOUS |
(a) All covenants and agreements of the Company in this
Warrant shall be binding upon the Company’s successors and
assigns. All covenants and provisions hereof by or for the
benefit of the Holder shall bind and inure to the benefit of its
successors and permitted assigns hereunder.
(b) This Warrant shall be construed and enforced in
accordance with the laws of the State of Michigan without regard
to choice of law principles that would compel the application of
the law of any other jurisdiction.
(c) Except as provided in Section 2, this Warrant may
be amended only with the written consent of the Company and the
Holder.
(d) Any notices or other communications required or
permitted hereunder shall be sufficiently given if in writing
and delivered in person or sent by United States mail, by
registered mail, postage prepaid, or by courier or express
delivery service (including, without limitation, Federal Express
and UPS), and if to the Holder, addressed to the Holder at 00000
Xxxx Xxxxxxx, Xxxxxx, Xxxxxxxxxx 00000, Attention:
Vice-
6
President of Purchasing, and if to the Company, addressed
to it at 00000 Xxxxx Xxxx, Xxxxx, Xxxxxxxx 00000, Attention:
Chief Financial Officer, or to such other address or attention
as shall be furnished in writing by the Company or the Holder.
Any such notice or other communication shall be deemed to have
been given as of the date received.
(e) In the event of any conflict between this Warrant and
the Agreement, the terms of this Warrant shall control.
7
IN WITNESS WHEREOF, the undersigned has caused this Warrant to
be signed by a duly authorized officer and this Warrant to be
dated as of the date set forth above.
ROCKWELL MEDICAL TECHNOLOGIES, INC.
By: |
|
Its: |
|
8
NOTICE OF
EXERCISE
Rockwell Medical Technologies, Inc.
00000 Xxxxx Xxxx
Xxxxx, Xxxxxxxx 00000
Attention: Chief Financial Officer
A Warrant was issued to the undersigned as of February 16,
2011 to purchase up to 100,000 shares of Rockwell Medical
Technologies, Inc. common stock at the exercise price set forth
in the Warrant. The undersigned hereby elects to exercise the
Warrant with respect
to shares.
Payment of the exercise price is being made by (check one):
/ / cash;
/ / certified
or cashier’s check delivered with this notice;
/ / | cashless exercise method described in Section 1(b) of the Warrant. |
The stock certificate for the shares acquired upon exercise
should be issued to:
(name)
(address)
(Social Security No. or EIN)
By: |
|
Its: |
|
Dated: |
|
9