Exhibit 10.2
DISTRIBUTORSHIP
AGREEMENT
This Distributorship Agreement
(Agreement) is entered into as of the 6th day of April, 2000
between SCHICK TECHNOLOGIES, INC. , 3100 47 th
Avenue, Long Island City, New York 11101, hereinafter referred to
as “Vendor”, and PATTERSON DENTAL COMPANY , 1031
Mendota Heights Rd., St. Paul, MN 55120, hereinafter referred to as
“Patterson.”
RECITALS
WHEREAS , Vendor provides certain products for the
dental industry and desires to increase its penetration of the
United States and Canadian markets, and Patterson desires to
distribute these products into the defined territory in accordance
with the terms and conditions hereof,
NOW, THEREFORE
, it is mutually agreed:
Definitions
The “Products” means the
products described on Schedule I.
The “Territory” is the
United States of America and Canada.
|
1.
|
Appointment and
Acceptance . Vendor
hereby appoints Patterson as its exclusive distributor, and
Patterson hereby accepts appointment as the exclusive distributor
of the Products together with all additions thereto, improvements
and modifications thereof for and within the Territory. Patterson
may sell the Products in the Territory through its
subsidiaries.
|
|
2.
|
Term
. The term of this Agreement shall
be for a period of three (3) year(s) from the date hereof (Initial
Term) and shall automatically renew for successive one (1) year
periods (Renewal Term) unless terminated as provided
herein.
|
|
3.
|
Duties of
Distributor .
Patterson agrees that during the term hereof it will promote the
sale and distribution of Products throughout the Territory.
Patterson shall maintain an adequate staff of personnel
knowledgeable with respect to the Products to discharge its
responsibilities hereunder, which shall include Patterson
maintaining at least one technical sales representative per branch
focused on the Products. Also, Patterson shall appoint a corporate
staff person to be responsible for the Products. A detailed
resource plan shall be described in the marketing plan to accompany
this Agreement or to be developed by the parties.
|
|
4.
|
Certain Direct
Sales . Vendor shall
not, except through Patterson, either sell Products in the
Territory or appoint any agent, sales representative or other
distributor to sell Products in the Territory regardless of the
title by which such person may be labeled, nor shall Vendor sell
Products in the Territory through the use of mail order
solicitation, the internet or catalogs, provided, however, Vendor
may sell direct to schools and governmental agencies, and may sell
OEM non-Schick branded products to manufacturers.
|
1
|
5.
|
Pricing
. Vendor agrees to sell the Products
to Patterson at the prices indicated in Schedule II. The prices
shall be firm for the first year; thereafter, prices shall be
re-established in good faith by mutual agreement
annually.
|
|
6.
|
Payment Terms
. Sales from Vendor to Patterson
shall be on open account, net invoice price payable within thirty
(30) days from receipt of invoice. A prompt payment discount of 1%
shall apply if payment is made within ten (10) days from date of
invoice.
|
|
7.
|
Shipments
. All shipments shall be F.O.B.
Vendor’s facility. Patterson shall designate the carrier.
Patterson shall be responsible for taxes, insurance and freight
charges.
|
|
8.
|
Selling Aids and
Training . Vendor
will provide Patterson with reasonable quantities of current
Product information, promotional materials such as photographs and
artwork and technical literature. In addition, Vendor shall furnish
ratings and specifications for the Products in conformity with
United Sates and Canadian standards so that Patterson shall not
have to do any testing. Upon Patterson’s reasonable request,
technical help shall also be furnished to Patterson without cost.
Vendor shall supply Patterson from time to time with copies of its
catalogs, brochures, direct mail, advertising and promotional
materials, including audio-visual tapes and Product data, which
Patterson may use in developing its own advertising and promotional
material for the Products. In addition to the foregoing support,
upon Patterson’s reasonable request, Vendor will provide
assistance and training to Patterson’s personnel at Patterson
locations in the United States and Canada.
|
|
9.
|
Cooperative
Marketing . Each
party shall develop and implement a marketing plan which shall
include the terms of the plan dated the same date as this Agreement
to promote the sale of the Products, including development of a
mutually agreeable marketing budget, and, where appropriate, joint
advertising and promotional efforts. Such advertising and
promotional programs will include all trade shows and dental
conventions at which Patterson is participating. Vendor shall
provide Patterson any sales leads generated through such activity.
Vendor and Patterson reserve the right to disapprove any
advertising which varies substantially from the type and kind in
general use by Patterson or Vendor in the United States and Canada
as long as such disapproval is communicated within 48 hours of
receipt. In the event of such disapproval by either Vendor or
Patterson, neither Vendor nor Patterson will utilize or disseminate
the advertising in question.
|
|
10.
|
Governmental
Compliance . Vendor
represents and warrants to Patterson (i) that the Products have
been cleared for sale in the United States by the United States
Food and Drug Administration (“FDA”); (ii) that Vendor
has complied with all FDA requirements pertaining to the Products,
including registration and listing of the Products as a device;
(iii) that the Products comply with all regulations of Canadian
governmental authorities and are cleared for sale in Canada by the
applicable Canadian governmental authorities; (iv) that the
Products comply with the requirements of Underwriters Laboratories,
if applicable; and (v) that the Products will be manufactured in
accordance with applicable Good Manufacturing Practice (GMP)
regulations.
|
2
|
11.
|
Confidential
Information .
Patterson agrees to use reasonable efforts to maintain the
confidentiality of any confidential or proprietary information of
Vendor, including technical knowledge respecting the Products,
which Vendor specifically advises Patterson, or which Patterson
reasonably should be aware, is information classified as
confidential. Upon termination of this Agreement, Patterson shall
not use any confidential or proprietary information of Vendor for
any reason or purpose except to fulfill service obligations to
customers who purchased Products from Patterson before termination
of this Agreement.
|
|
12.
|
Intellectual Property
Rights .
|
|
|
12.1.
|
Vendor represents that it has no
knowledge or reason to believe that any of the trademarks,
copyrights, patents or other intellectual property rights relating
to any of the Products, whether owned by Vendor or others, infringe
upon or violate the intellectual property rights (including
patents, trademarks, copyrights, symbols or designs) of any third
party.
|
|
|
12.2.
|
If Patterson shall have found that
Vendor trademarks, copyrights, patents or other intellectual
property rights are being disputed or infringed by a third party,
Patterson shall promptly inform Vendor thereof and assist Vendor in
taking steps necessary to protect its rights. Patterson, however,
shall have no obligation to bring or maintain legal proceedings to
protect Vendor’s interests.
|
|
13.
|
Protection for Products
Liability and Intellectual Property Rights
. Vendor will indemnify, defend and
hold Patterson harmless from and against any claim, demand, action,
loss, cost, damage and expense (including attorneys’ fees and
expenses) arising out of or based upon any claim by any person (i)
by reason of the alleged defective manufacture or design of the
Products or failure of the Products to meet the specifications for
said Products set forth in the invoices, documentation or other
sales literature applicable thereto approved by Vendor, or (ii)
claiming that the intellectual property rights relating to any of
the Products of Vendor as described in Section 12 hereof infringe
upon the rights of any third party. Vendor shall have the right to
assume full control of the defense and settlement of any such
claim, including without limitation any modification of the
Products which may be appropriate in Vendor’s judgment in
connection with any infringement suit, and Patterson shall
cooperate with Vendor with respect thereto. Vendor shall maintain
public liability insurance including products liability, with
limits of not less then $1,000,000 per occurrence, and shall
deliver to Patterson certificates evidencing such insurance, with
broad form vendor’s endorsement for Patterson’s benefit
naming Patterson and its subsidiaries as additional
insureds.
|
|
|
14.1.
|
New Inventory
. Vendor realizes that Patterson
may not immediately know the stock requirements for its trading
area. To help Patterson adjust its inventory,
|
|