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Exhibit 10.5
NON-EXCLUSIVE DISTRIBUTOR AGREEMENT
This Non-Exclusive Distributor Agreement ("this Agreement"), effective as of the
date of the latest signature below (the "Effective Date") is entered into by
XXXXX MEDICAL PRODUCTS ("Xxxxx"), located at 0000 Xxxxxx Xxxx, Xxxxxxxxxxxxxx,
Xxxxxxxxxxxx 00000-0000, and ESCALON OPTHALMIC, INC. ("Escalon"), located at 000
Xxxxxx Xxxxxxxxx Xxxx, Xxxxx, XX 00000.
RECITALS
X. Xxxxx and Escalon are parties to a Distributorship Agreement, dated as of
September 8, 1992 (the "Former Agreement"), which the parties desire to
terminate.
X. Xxxxx and Escalon desire to enter into this Agreement to allow Escalon the
non-exclusive right to distribute products manufactured by Xxxxx Medical
Products. The products covered in this agreement ("Products") are limited
to those products set forth in Exhibit A attached hereto and made a part
hereof, as amended from time to time pursuant to Section 2.7.
THEREFORE, in consideration of the mutual promises contained in the following
provisions, and intending to be legally bound by this Agreement, the parties
agree as follows:
ARTICLE I -- TERMINATION OF FORMER AGREEMENT
1.1 Termination. The Former Agreement is hereby terminated effective as of the
Effective Date. In connection with the termination of the Former Agreement,
the parties agree that:
(a.) Any products ordered by Escalon under the Former Agreement and not
shipped by Xxxxx xxxxx to the Effective Date shall be deemed to have
been ordered under this Agreement and shall be shipped by Xxxxx and
paid for by Escalon in accordance with the terms of this Agreement.
(b.) Any products shipped by Xxxxx under the Former Agreement and not
paid for by Escalon as of the Effective Date shall be paid for by
Escalon in accordance with the pricing and terms current at the time
the product was shipped.
1.2 Release. In consideration of the execution and delivery by Xxxxx of this
Agreement, and the rights granted to Escalon in this Agreement, Escalon
does hereby, for itself, its affiliates, successors and assigns, release,
disclaim and discharge any and all manner of actions and causes of action,
suits, debts, accounts, covenants, contracts, agreements, damages, claims,
demands and liabilities whatsoever, of every name and nature, in law or
equity, or otherwise (any of the foregoing, a "Claim"), which any of them
ever had, now have, or which they hereafter can, shall or may have, against
Xxxxx and its affiliates, officers, directors, shareholders, distributors
and customers under the Former Agreement or by reason of Xxxxx'x
development, manufacture and sale of products to Escalon or any other
person, or for infringement of any patents owned by, or licensed or
assigned to, Escalon or any of its affiliates (filed in the United States
or elsewhere) for, or relating to,
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ophthalmic gases, whether a Claim arises or arose out of any agreement, oral or
written, a course of conduct or otherwise. Escalon covenants and agrees that it
will forever refrain from, directly or indirectly, instituting, prosecuting,
maintaining or pressing any Claim against Xxxxx or any other person based upon
any matter purported to be released hereby.
ARTICLE 2 - Supply of Products
2.1 General. Xxxxx shall use commercially reasonable efforts to supply the
Products to Escalon in accordance with Escalon's written purchase orders and the
terms and conditions of this Agreement.
2.2 Estimated Purchases. Escalon will provide Xxxxx at the beginning of each
month with a rolling twelve (12) month forecast of its requirements for the
Products, such forecasts to be considered good-faith estimates only, for
planning purposes, and not to be considered as guarantees of the volumes or
timing of such requirements; provided that the first three (3) months of such
rolling forecast shall constitute a firm commitment unless modified by the
parties by subsequent written agreement.
2.3 Exclusivity of Supplier. Xxxxx shall be considered Escalon's exclusive
supplier of the Products and Escalon agrees to purchase all of its requirements
for the Products from Xxxxx. If Xxxxx is unable to meet the required demand for
the Products for four consecutive calendar months, then Escalon will not be
required to purchase all of its requirements for the Products from Xxxxx and may
purchase from an additional supplier the amount of Products not available from
Xxxxx. Escalon will resume purchasing all of its requirements of the Products
once Xxxxx has demonstrated that it once again has the ability to supply Escalon
with the amount of the Products needed.
2.4 Specifications. All the Products that Xxxxx supplies shall meet or exceed
the relevant specifications set forth in Exhibit A (the "Specifications").
2.5 Manufacturing. All the Products that Xxxxx supplies shall be manufactured
in compliance with or pursuant to: (a) all applicable CGMP procedures; (b) all
other applicable FDA regulations or requirements; (c) all other applicable
federal, state, and local laws and regulations; and (e) all required FDA and
other regulatory validations, permits, registrations, licenses, and approvals.
2.6 Manufacture of Finished Products by Escalon. Upon receipt of the Products
from Xxxxx, Escalon shall integrate the Products into finished products as
components thereof. Escalon shall package and label the finished products in a
manner mutually agreeable to the parties and in conformity with applicable law
and governmental approvals.
2.6 Modifications to Products. From time to time Xxxxx may modify, alter or
improve the Products listed in Exhibit A in whole or in part. Any such
modification, alteration or improvement of the Products shall only occur with
the prior written consent of Escalon, except that Escalon's consent shall not be
required if Xxxxx determines that the modification, alteration or improvement is
necessary in order to correct a defect in a Product or enhance the safety of a
Product, or if the modification, alteration or improvement is required by any
law or regulation or is in conformity with any administrative or regulatory
order or standard. In the event Escalon fails to respond within 30 days of
receipt of notice of a proposed modification, alteration or improvement,
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the modification, alteration or improvement shall be deemed approved by
Escalon. The term "Products" shall be deemed to include the modified,
altered or improved Products.
2.8 Price. The prices for all Products shall be as set forth in Exhibit B
attached hereto and made a part hereof. Such prices shall remain firm
for one year after the signing of the Agreement. Thereafter, these
prices shall be subject to adjustment at the discretion of Xxxxx.
2.9 Escalon Purchase Orders. A specific commitment to purchase the Products
will be established by Escalon's issuance of a purchase order against
this Agreement. All Escalon purchase orders shall be deemed to
incorporate the pricing, delivery, Specification, and other terms and
conditions contained in this Agreement. None of the terms and
conditions set forth on any purchase or order form, invoice or like
document shall change or modify the provisions of this Agreement, unless
mutually agreed to by the parties in writing. Each purchase order shall
be considered firm, and shall not be subject to change or cancellation
without Xxxxx'x written consent and will be subject to Xxxxx'x normal
cancellation fees. A purchase order shall be deemed to have been issued
on the date that it bears if it is received by Xxxxx no later than the
fourth business day following that date; if it is received later than
the fourth business day, it shall be considered to have been issued when
received by Xxxxx.
2.10 Payment. Escalon's payment for all orders of the Products shall be due
net 30 days after shipment from Xxxxx.
2.11 Interest. Interest shall accrue on any delinquent amounts owed by
Escalon for Products at the lesser of 10% per year, or the maximum rate
permitted by applicable law.
2.12 Shipment. Xxxxx shall ship each order of the Products to the destination
specified in Escalon's purchase order. All shipments will be F.O.B.
Plumsteadville, PA. Escalon may specify in its purchase order the common
carrier to be used. If Escalon fails to specify a qualified common
xxxxxxx, Xxxxx shall select the common carrier.
2.13 Risk of Loss. Title and all risk of loss of or damage to the Products
(other than loss or damage resulting from the acts or omissions of
Xxxxx, including without limitation acts or omissions in packing the
Products) will pass to Escalon, or to such financing institution or
other party or parties as may have been designated to Xxxxx by Escalon,
upon delivery by Xxxxx to a mutually agreed upon carrier in accordance
with Section 2.9.
2.14 Partial Delivery. With Escalon's prior written consent, Xxxxx may make
partial shipment of Escalon's orders, to be separately invoiced and paid
for when due.
2.15 Delivery Schedule; Delays. Xxxxx will use commercially reasonable efforts
to meet Escalon's requested delivery schedules for the Products, but
Xxxxx reserves the right to refuse, cancel or delay shipment to Escalon
when Escalon is delinquent in payments to Xxxxx, or when Escalon has
failed to perform its obligations under this Agreement or any other
Agreement between Escalon and Xxxxx. Reasonable delay in delivery of any
order shall not relieve Escalon of its obligation to accept the delivery.
Should orders for Products exceed Xxxxx'x available inventory, Xxxxx will
allocate its available inventory among its customers on a pro rata basis
based upon orders for the preceding six months. In any event, Xxxxx shall
not be liable for indirect, consequential, or special damages to
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Escalon for failure to deliver or for any delay or error in delivery of
Products for any reason whatsoever.
2.16 Sales and Use Tax. Escalon shall pay any and all applicable sales or use
taxes or any other assessment levied upon the sale, transportation,
delivery, use or consumption of the Products or upon the cylinders in
connection with any order of the Products.
2.17 Certificate of Analysis. Xxxxx shall provide a certificate of compliance
for each lot produced for each item of the Products indicating that the
material has been produced and tested in accordance with the
Specifications. Xxxxx agrees to provide Escalon (upon request) final
acceptance and in-process test data to indicate that the process used to
produce the Products is under control for each lot/batch supplied.
2.18 Acceptance of the Products by Escalon. Escalon shall perform and complete
its receiving and quality assurance tests and inspections for units of the
Products shipped to Escalon under this Agreement by no later than 30 days
after its receipt of such units of the Products from time to time, and
shall be conclusively deemed to have accepted such units of the Products
unless it gives written notice of rejection of any such units to Xxxxx
within such 30 day period and returns the rejected units to Xxxxx within 30
days after receiving a written return authorization from Xxxxx. Xxxxx shall
not unreasonably withhold its return authorization and will be deemed to
have authorized the return of rejected units if it fails to deny such
return authorization within ten days of receiving Escalon's notice of
rejection. All shipping charges on authorized returns shall be borne by
Xxxxx. Escalon acknowledges that the Specification for the Products is as
set forth in Exhibit A to this Agreement. Escalon's acceptance of the
Products shall in no way relieve Xxxxx of its obligations and/or warranties
hereunder.
2.19 Remedies for Failure to Comply with Specification. Should any failure of a
Product to conform with the Specification appear within the Product
Warranty Period (as discovered by Escalon) as a result of the testing
outlined in Section 2.18, and if Escalon gives written notice of such
failure to Xxxxx within 30 days following discovery of the failure, Xxxxx
shall replace the nonconforming Product or refund the purchase price
thereof within 90 days after Escalon's notice to Xxxxx. The foregoing shall
constitute Escalon's sole remedy with respect to the non-conforming
Products.
ARTICLE 3 -- Escalon's Duties
3.1 No Additional Warranties. Escalon agrees that it will not make any
representations, guarantees or warranties (whether written or oral)
regarding the efficacy or any other characteristics of the Products on
Xxxxx'x behalf other than as contained in written promotional literature
prepared by Xxxxx, or as required by any governmental law, regulation or
agency.
3.2 Claims. Escalon will provide Xxxxx with copies of all product liability
claims and complaint letters relating to the Products within 72 hours of
claim. Xxxxx agrees to promptly notify Escalon of any laws, regulations,
decrees, orders or judgments of courts, tribunals or government agencies,
of which Xxxxx is aware, that require any of the Products sold or
distributed by Escalon to be recalled. If the Products are required by any
government agency to be recalled, Escalon shall be responsible for properly
effecting the
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recall. The party causing the problem resulting in a recall, decree, order
or judgment of a court, tribunal or agency shall bear the expense related
thereto. If both parties contributed to the problem resulting in a recall,
decree, order or judgment of a court, tribunal or agency, the expenses
thereof shall be split in proportion to each party's relative
responsibility. The party liable for the cost of a recall shall retain all
of the Product so recalled. To the extent that the costs of a recall are
shared, each party shall be entitled to its pro rata share of the recalled
Products.
3.3 FDA INSPECTION. Escalon will permit the FDA and corresponding drug
regulatory agencies of foreign jurisdictions to inspect its manufacturing
facility for finished products in accordance with applicable laws and
regulations. Escalon will provide Xxxxx with a copy of all FDA
correspondence relating to finished products which is reasonably necessary
to Xxxxx'x performance hereunder or which could adversely affect Xxxxx.
3.4 XXXXX ACCESS. On reasonable prior notice to Escalon, Escalon will permit a
representative employed by Xxxxx to have reasonable access during business
hours to its manufacturing facility solely for the purposes of auditioning
Escalon's regulatory compliance and its quality control processes, but the
representative will not have access to any of Escalon's Confidential
Information (as defined in Section 5.2).
3.5 COMPLIANCE WITH GOVERNMENTAL APPROVALS. Escalon will sell and distribute the
Products only as a component of finished products and only in the United
States of America and in such other countries, nations, territories or other
political subdivisions for which it has received all required Governmental
Approvals at Escalon's expense and will do so only in accordance with those
Governmental Approvals and all applicable laws, rules and regulations.
"Governmental Approval" as used herein shall mean governmental or other
licenses, consents or approvals necessary for the resale and distribution of
finished products by Escalon in any country, nation, territory or other
political subdivision in which Escalon markets or sells the Products.
3.6 QUALITY CONTROL. From time to time, Escalon will notify Xxxxx in writing of
any problems or concerns that arise out of its quality control and
regulatory compliance inspections. Escalon will also notify Xxxxx in writing
of any material quality control problems of which Escalon has knowledge.
Upon receipt of notice under this Section 3.6, Xxxxx shall use commercially
reasonable efforts to endeavor to remedy the problem and shall, within 30
days after receipt of notice, and monthly thereafter for so long as the
problem continues, provide Escalon a written report of the status of the
problem and the measures that have been taken to correct it.
3.7 INSURANCE. Escalon shall obtain and maintain comprehensive or commercial
general liability insurance coverage including products and completed
operations coverage, blanket contractual coverage and broad form commercial
general liability coverages affording a minimum limit of liability of
$1,000,000 combined single limit for bodily injury/property damage per
occurrence and a minimum limit of liability of $5,000,000 in the aggregate.
Such policy of insurance shall name Xxxxx as an additional insured
thereunder and shall provide Xxxxx with 30 days' prior written notice in the
event of policy cancellation or a material change in its terms or
provisions. Escalon will, concurrently or within ten days of its execution
of this Agreement, deliver a certificate evidencing such insurance to Xxxxx.
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3.8 Continuous Compliance by Escalon. Each finished product sold by Escalon
shall not be adulterated or misbranded and shall not be an article that may
not be introduced into interstate commerce pursuant to applicable law. With
respect to labeling, promotional material, packaging, or other
representations, Escalon shall indemnify Xxxxx for any liability arising
from (i) errors in translation performed by Escalon or (ii) Escalon's
failure to comply with applicable law.
ARTICLE 4 -- Xxxxx'x Duties
4.1 Documentation Transfer. Xxxxx hereby agrees to provide the necessary
documentation that will allow Escalon to inspect and distribute the
Products covered by this Agreement ("Documentation"). For purposes of this
Section 4.1, Documentation includes, but is not limited to CAD engineering
drawings detailing the contents and labeling of the Products.
4.2 Escalon Reports. Unless required by applicable law, Xxxxx will not directly
or indirectly through any third party deliver any report, study or other
similar documentation received from Escalon pursuant to Article 3 to any
governmental agency or body in connection with any governmental or other
licenses, consents or approvals necessary for the resale and distribution
of the Products and/or finished products without Escalon's prior written
consent.
4.3 FDA Inspection. Xxxxx will permit the FDA and corresponding drug regulatory
agencies of foreign jurisdictions to inspect its manufacturing facility for
the Products in accordance with applicable laws and regulations. Xxxxx will
provide Escalon with a copy of all FDA correspondence relating to the
Products which is reasonably necessary to Escalon's performance hereunder
or which could adversely affect Escalon.
4.4 Insurance. Xxxxx shall obtain and maintain comprehensive or commercial
general liability insurance coverage including products and completed
operations coverage, blanket contractual coverage and broad form commercial
general liability coverages affording a minimum limit of liability of
$1,000,000 combined single limit for bodily injury/property damage per
occurrence and a minimum limit of liability of $5,000,000 in the aggregate.
Such policy of insurance shall name Escalon as an additional insured
thereunder and shall provide Escalon with 30 days prior written notice in
the event of policy cancellation or a material change in its terms or
provisions. Xxxxx will deliver a certificate evidencing such insurance to
Escalon within ten days of execution of the Agreement.
ARTICLE 5 --Confidentiality
5.1 Obligations of the Parties. Each party acknowledges that this Agreement
requires the disclosure to it by the other party of Confidential
Information. Each party (the "Receiving Party") shall regard and preserve
Confidential Information that it obtains from the other party (the
"Disclosing Party") as secret and confidential. During the term of this
Agreement and for a period of ten years thereafter, no Receiving Party
shall publish or disclose any Confidential Information in any manner
without the Disclosing Party's prior written consent. The Receiving Party
shall use the same level of care to prevent the disclosure of Confidential
Information that it exercises in protecting its own Confidential
Information, and shall in any event take all reasonable precautions to
prevent the disclosure of Confidential Information to third parties.
Notwithstanding these restrictions,
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a Receiving Party may disclose Confidential Information to the FDA, to
persons conducting preclinical or clinical trials of any Product, and to
such other persons (such as consultants) as may be necessary to the
performance of this Agreement, upon securing from those persons (except the
FDA) executed confidentiality agreements in the form customarily employed
by the Receiving Party when required to disclose its own confidential
information.
5.2 Confidential Information. "Confidential Information" means information in
the possession of a party that is not generally known and that gives that
party a competitive advantage over third parties, including but not limited
to techniques, designs, drawings, data, processes, inventions, concepts,
substances, specifications, developments, equipment, protocols, sales and
customer information, trade secrets, and business and financial information
relating to the research, products, practices, and businesses of that
party.
5.3 Exceptions. The following shall not be considered Confidential Information:
(a.) Information that is public knowledge or that becomes public knowledge
through no fault of the Receiving Party.
(b.) Information that is lawfully obtained by the Receiving Party from a
third party (that to the knowledge of the Receiving Party itself
lawfully obtained the Confidential Information and has no obligation
of confidentiality.)
(c.) Information that is in the Receiving Party's lawful possession, as
documented by its records, prior to its initial disclosure by the
Disclosing Party. This exception shall not apply to release either
party from the terms of any confidentiality agreement it entered into
prior to the Effective Date.
(d.) Information that is independently developed by the Receiving Party
without reference to any Confidential Information of the Disclosing
Party.
ARTICLE 6 -- Terms and Termination
6.1 Term. This Agreement shall commence on the Effective Date and shall
continue in effect for a period of five years from that date (the
"Initial Term") unless terminated in accordance with the provisions hereof.
Upon expiration of the Initial Term, the Agreement shall automatically
renew on the relevant anniversary date for successive one year terms unless
either Party, upon not less than 90 days written notice to the other Party
prior to expiration of the term then in effect, signifies its intention to
permit the Agreement to expire, whereupon the Agreement shall end upon the
expiration of such term.
6.2 Termination. This Agreement may be terminated earlier than Section 6.1
provides under the following circumstances:
(a.) Insolvency. This Agreement may be terminated by either party by notice
to the other in the event such other party shall dissolve, cease
active business operations or liquidate, or in the event such other
party shall have been determined to be insolvent by a court of
competent jurisdiction, or insolvency or reorganization
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proceedings shall have been commenced by such other party, or
such proceedings shall have been brought against such other party
and remained undismissed for a period of 60 days, or such other
party shall have made a general assignment for the benefit of
creditors, or a receiver of all or substantially all of such
other party's assets shall have been appointed and not discharged
within 60 days.
(b.) Party's Default. This Agreement may be terminated by either
party if the other materially breaches any provision of this
Agreement, except that this Agreement shall not be deemed
breached by a party unless (i) the claiming party has given the
breaching party written notice specifying the respects in which
the claiming party claims the Agreement has been breached (the
"Notice of Breach"); (ii) the breaching party fails to remedy
such breach, or fails to provide information to the claiming
party sufficient to show that it has not breached this Agreement,
within 60 days following the receipt of the Notice of Breach; and
(iii) no later than 30 days following the expiration of said
60-day period, the claiming party has served final written notice
of termination. If this Agreement is terminated by Xxxxx due to a
material breach of this Agreement by Escalon, Escalon shall,
within 30 days after the termination, pay to Xxxxx (i) all of
Xxxxx'x costs associated with the purchase of raw materials for
the purpose of manufacturing the Products; (ii) all of Xxxxx'x
costs associated with work in process relating to the Products;
and (iii) the price for all finished Products, as set forth in
Exhibit B. All raw materials, work in process and finished
Products for which Escalon pays pursuant to the preceding
sentence shall, at the request of Escalon, be shipped by Xxxxx
to Escalon at Escalon's expense.
6.3 No Damages On Termination. Both parties have considered the
expenditures necessary in preparing for performance of Agreement and
the possible losses and damages incident to each in the event of
termination. Each party understands that the other party may terminate
this Agreement and the distributorship created hereunder as provided
in Section 6.2 or permit this Agreement to expire without extension or
renewal. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY
FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES, INCLUDING BUT
NOT LIMITED TO LOSS OF PROFITS AND GOODWILL, IN CONNECTION WITH THIS
AGREEMENT, ITS PERFORMANCE OR TERMINATION (WHETHER OR NOT IN
ACCORDANCE WITH ITS TERMS), WHETHER OR NOT THE OTHER PARTY'S CLAIM
ARISES IN TORT, CONTRACT OR OTHERWISE.
ARTICLE 7 -- WARRANTIES
7.1 Product Warranty. Xxxxx warrants that the Products as delivered to
Escalon hereunder, shall conform to the Specifications, shall comply
with all applicable FDA requirements, and shall be free from
manufacturing and workmanship defects under normal care and use for
their intended purpose. The warranty for defects in material and
workmanship shall extend for a period of three years after delivery of
the Product to Escalon ("Product Warranty Period"); except that in the
case of the Product's failure to comply with the Specifications, the
Product Warranty Period (and Xxxxx'x obligations in respect thereof)
shall be extended to be consistent with the Specifications. THE
WARRANTIES SET FORTH IN THIS SECTION 7.1 ARE IN LIEU OF ALL OTHER
WARRANTIES.
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EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
7.2 Intellectual Property Indemnity. Escalon shall indemnify and hold harmless
Xxxxx and its affiliates, officers, directors, employees and shareholders
against and from all claims, demands, suits, costs (including reasonable
attorneys' fees and costs of investigation) and actions in each case with
respect to claims that the manufacture, sale and/or use of the Product by
Escalon or its affiliates infringes any intellectual property right of a
third party.
7.3 Indemnification Against Product Liability. Escalon shall indemnify and hold
harmless Xxxxx and its affiliates, officers, directors, employees and
shareholders against and from all claims, demands, suits, costs (including
reasonable attorneys' fees), and actions in each case with respect to
damages to property or injuries to persons that may be sustained by any
third party and that are asserted against such an indemnified party on the
basis of a defect in the manufacture or supply of the Products or any other
products manufactured or sold by Escalon or its affiliates.
7.4 Continuing Obligations. The obligations of the parties set forth in this
Article 7 shall continue notwithstanding the termination of this Agreement.
7.5 Limitation of Liability. NEITHER PARTY SHALL IN ANY EVENT HAVE OBLIGATIONS
OR LIABILITIES TO THE OTHER PARTY FOR LOSS OF PROFITS, LOSS OF USE OR
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON CONTRACT,
TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR ANY OTHER THEORY OR FORM
OF ACTION, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY THEREOF,
ARISING OUT OF OR IN CONNECTION WITH THE MANUFACTURE, SALE, DELIVERY, USE,
REPAIR OR PERFORMANCE OF THE PRODUCTS, OR ANY FAILURE OR DELAY IN
CONNECTION WITH ANY OF THE FOREGOING OR FOR BREACH OF ANY REPRESENTATION,
WARRANTY OR COVENANT IN THIS AGREEMENT. WITHOUT LIMITING THE GENERALITY OF
THE PRECEDING SENTENCE, XXXXX SHALL NOT BE LIABLE TO ESCALON FOR PERSONAL
INJURY OR PROPERTY DAMAGE, EXCEPT FOR BODILY INJURY, DEATH OR TANGIBLE
PROPERTY DAMAGE CAUSED BY THE NEGLIGENCE OF XXXXX OR ANY OF XXXXX'X
EMPLOYEES. IN NO EVENT SHALL THE LIABILITY OF XXXXX TO ESCALON ARISING
UNDER OR IN CONNECTION WITH THIS AGREEMENT EXCEED FIVE HUNDRED THOUSAND
DOLLARS ($500,000) IN THE AGGREGATE FOR ALL CLAIMS UNDER THIS AGREEMENT.
ARTICLE 8 - GENERAL PROVISIONS
8.1 Assignment. This Agreement may not be assigned by either party without the
prior written consent of the other. Notwithstanding the foregoing, either party
may assign this Agreement without such consent to a wholly-owned subsidiary,
and Xxxxx may assign this Agreement to a transferee of substantially all of the
assets of its business unit dedicated to the Products. Nothing in this Section
8.1 shall preclude Xxxxx from subcontracting all or any portion of the
manufacturing of the Products.
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8.2 Notice. Any notices permitted or required to be given hereunder shall
be effective if they are delivered personally, by certified mail
(return receipt requested), by overnight air courier (with return
receipt), or by facsimile machine (with proof of transmission) and
delivered:
in the case of Escalon, to:
President/CEO
Escalon Ophthalmic, Inc.
000 Xxxx Xxxxxxxxx Xxxx
Xxxxx, XX 00000
and in the case of Xxxxx, to:
Vice President/General Manager
Xxxxx Medical Products, Inc.
0000 Xxxxxx Xxxx, Xxxxxxxx 0
X.X. Xxx 000
Plumsteadville, Pennsylvania 18949-0310
000-000-0000 Facsimile
Notices may be sent to any changed address of any of the above of
which the sender has actual knowledge.
8.3 Integration. This Agreement represents the entire agreement of the
parties with respect to its subject matter, and supersedes any and all
prior agreements, understandings, promises, and representations by any
party to any other respecting its subject matter, including, but not
limited to, the Former Agreement.
8.4 No Brokers. No party to this Agreement employed any broker or agent in
connection with this transaction or its subject matter.
8.5 Captions; Exhibits. All captions contained in this Agreement are
inserted for convenience or reference only shall not be deemed a part
of this Agreement. The Exhibits are incorporated into and deemed a
part of this Agreement.
8.6 Severability. If any provision of this Agreement is held
unenforceable, the provision shall be regarded as severable from this
Agreement and the remaining provisions shall remain in full force and
effect.
8.7 Status of the Parties. Escalon and Xxxxx shall not be deemed to be
partners, joint ventures or one another's agents, and neither shall
have the right to act on behalf of the other except as expressly
provided herein or otherwise expressly agreed in writing.
8.8 Waiver. The failure or neglect of Escalon or Xxxxx to enforce the
terms and conditions of this Agreement shall not be deemed a waiver
thereof nor shall it be deemed a condonation of any breach. Such
failure or neglect shall not be deemed a waiver or condonation of any
later breach. All remedies under this Agreement are cumulative and are
not exclusive of other remedies.
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8.9 Force Majeure. Neither Party will be held liable or responsible to the
other Party nor be deemed to have defaulted under or breached this
Agreement for failure or delay in fulfilling or performing any term of
this Agreement, except for the payment of any sums owing hereunder,
when such failure or delay is caused by or results from causes beyond
the reasonable control of the affected Party including but not limited
to such causes attributable to fire, floods, earthquakes, shortages,
failure or delays of energy, materials, supplies or equipment,
breakdowns in machinery or equipment, embargoes, wars, acts of war
(whether war be declared or not), insurrection, riots, civil
commotion, acts of God or acts, omissions or delays in acting by any
governmental authority or the other Party.
8.10 Amendment. This Agreement may only be amended by a writing signed by
the parties hereto and expressly designated as an amendment to this
Agreement.
8.11 Binding Effect, Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties hereto, their
subsidiaries, divisions, business units, successors and permitted
assigns.
8.12 Affiliate. Affiliate means, in the case of each party, any
corporation, company, partnership, joint venture and/or firm that is
directly or indirectly controlled by that party, or that controls or
is under common control with that party. For purposes of this Section
8.12, control means (a) in the case of corporate entities, direct or
indirect ownership of at least 50% of the shares entitled to vote for
the election of directors; and (b) in the case of non-corporate
entities, direct or indirect ownership of at least 50% of the equity.
8.13 Choice of Law. This Agreement shall be construed in accordance with
the substantive laws of Pennsylvania, without giving effect to the
choice of law provisions applicable in that or any other jurisdiction.
8.14 Alternative Dispute Resolution. Disputes under this Agreement will be
resolved as follows:
(a.) If a dispute arises under this Agreement which cannot be
resolved by the personnel directly involved, either party may
invoke this dispute resolution procedure by giving written notice
to the other designating a senior executive officer of such party
or its affiliate with appropriate authority to be its
representative in negotiations relating to the dispute.
(b.) Upon receipt of the notice, the other party shall, within five
business days, designate a senior executive officer of such party
or its affiliate with similar authority to be its representative.
(c.) Within 14 business days of the designation of both executives,
the designated executives shall enter into good-faith
negotiations concerning the dispute.
(d.) If an agreement cannot be reached within one month after the
commencement of negotiations, either party may commence
litigation to resolve the dispute in question.
8.15 Counterparts. This Agreement may be executed in counterparts, to be
evidenced by the simultaneous (within physical limits) exchange of
signature pages (telefaxed if necessary)
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and confirmatory cover letters, and the counterparts together shall be regarded
as a single instrument binding on the parties.
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WHEREFORE, the parties have executed this Agreement as of the date of the
latest signature below.
ESCALON OPTHAMALIC, INC. XXXXX MEDICAL PRODUCTS, INC.
By: /s/ Xxxxxx X. Xxxxxxx By: /s/ Xxxxxx X. Xxxxxxx
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Its: President COO Its: Vice President and General Manager
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Date: 10-12-00 Date: 10-13-00
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