Exhibit 10.1
** Certain information in this
exhibit has been omitted and has been filed separately with the
Securities and Exchange Commission pursuant to a confidential
treatment request under Rule 24b-2 of the General Rules and
Regulations under the Securities Exchange Act of
1934.
ULS™ SUPPLY
AND
MARKETING LICENSE
AGREEMENT
between
KREATECH BIOTECHNOLOGY
B.V.
and
IMMUNICON
CORPORATION.
INDEX
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PARTIES
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PREAMBLE
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Article
1.
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DEFINITIONS
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6
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Article
2.
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GRANT AND
RESTRICTIONS OF LICENSE
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8
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Article
3.
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TRADE NAMES AND
TRADEMARKS
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9
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Article
4.
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PATENT MARKING
AND PRODUCT LITERATURE
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10
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Article
5.
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CONFIDENTIALITY
AND PUBLICITY
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11
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Article
6.
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SUPPLY AND
MANUFACTURING
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13
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Article
7.
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ROYALTIES,
ENTRANCE FEES AND SUPPLY PRICES
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15
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Article
8.
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PAYMENTS AND
REPORTS
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15
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Article
9.
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TECHNICAL
ASSISTANCE
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16
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Article 10.
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TERM AND
TERMINATION
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16
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Article 11.
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INFRINGEMENT BY
THIRD PARTIES
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18
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Article 12.
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REPRESENTATIONS
AND WARRANTIES
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19
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Article 13.
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INDEMNIFICATION
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20
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Article 14.
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IMPROVEMENTS
AND INVENTIONS
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21
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Article 15.
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ASSIGNMENT
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21
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Article 16.
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GOVERNING LAW
AND JURISDICTION
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22
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Article 17.
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MISCELLANEOUS
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22
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Article 18.
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EXECUTION
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24
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 2 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
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EXHIBIT A-1
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PATENT
RIGHTS
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25
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EXHIBIT A-2.1
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PRODUCTS/LICENSEE
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26
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EXHIBIT
A-2.2
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PRODUCTS/KREATECH
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26
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EXHIBIT
A-3
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LICENSED
PRODUCTS
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27
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EXHIBIT
B
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TERRITORY
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28
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EXHIBIT
C
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PRODUCT
APPLICATION
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29
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EXHIBIT
D
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MARKET
SEGMENT
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30
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EXHIBIT
E-1
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TARGET
AMOUNT
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31
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EXHIBIT
E-2
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LICENSEE’S FORECASTS
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32
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EXHIBIT
F
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LIST OF
RESELLERS
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33
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EXHIBIT
G
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TRADE NAMES AND
TRADEMARKS
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34
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EXHIBIT
H
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GENERAL TERMS
OF SUPPLY
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35
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EXHIBIT
I
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PRODUCT
SPECIFICATIONS
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38
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EXHIBIT
J-1
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FEE(S)
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39
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EXHIBIT
J-2
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PAYMENTS FOR
LICENSED PRODUCTS
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40
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EXHIBIT
K
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REPORTS
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41
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EXHIBIT
L
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KREATECH’S STANDARD FEES
2005/2006
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42
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 3 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
PARTIES
by and between:
KREATECH BIOTECHNOLOGY
B.V. , a private company
with limited liability incorporated under the laws of the
Netherlands, having its registered office and principal place of
business at (1032 LG) Amsterdam, the Netherlands, at Vlierweg 20,
(hereinafter “KREATECH”)
and
Immunicon Corporation,
a corporation incorporated under the
laws of the state of Delaware, USA having its principal place of
business at 3401 Masons Mill Rd, Suite 100 Huntingdon Valley, PA
19006, USA, (hereinafter “LICENSEE”)
Together also to be referred to as
“Parties”;
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 4 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
PREAMBLE
WHEREAS , KREATECH represents that it is entitled to
(sub)license certain valuable patent rights and know-how relating
to the versatile non-enzymatic technology for the chemical labeling
of bioorganic monecules, e.g. DNA, RNA, proteins, oligonucleotides
and nucleotides, known as the Universal Linkage System (ULS
™ );
WHEREAS, KREATECH has a Market License Agreement with
[****************************************************
**************************************************************************],
granting KREATECH the right to use
[*************************************] to produce [******]
labeling reagents, by using KREATECH’s Universal Linkage
System (ULS ™ ),
WHEREAS , LICENSEE would like to have certain of its raw
materials and products processed by the ULS™ technology and
would like to obtain a non-exclusive license to market the
ULS ™ -processed products under private
label;
WHEREAS , KREATECH is able and willing to supply
LICENSEE with such ULS™-processed products and to grant such
non-exclusive market license;
NOW, THEREFORE
, in consideration of the foregoing
and of the following terms, conditions and promises, the Parties
hereto agree as follows:
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 5 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
Article 1. DEFINITIONS
As used herein, the following terms
shall have the following meanings, either used in the singular or
in the plural form:
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1.1
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“AFFILIATE” hall mean any
corporation, company or other entity that directly or indirectly
controls, is controlled by, or is under common control with
KREATECH or LICENSEE. For the purpose of this definition, the word
“control” shall mean the direct or indirect ownership
of more than fifty percent (50%) of the outstanding voting
stock or equity of the corporation, company, or other
entity.
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1.2
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“AGREEMENT” shall mean this ULS
Supply and Marketing License agreement, explicitly including all
EXHIBITS.
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1.3
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CONTRACT
YEAR” shall mean January 1 to December 31. The
first CONTRACT YEAR shall begin January 2, 2006.
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1.4
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“CHANGE
OF CONTROL” means a change in control over the company of
KREATECH in a way that such control will be held by other parties
than the parties having such control at the Effective Date. For the
purpose of this definition, the word “control” shall
mean the direct or indirect ownership of more than fifty percent
(50%) of the outstanding voting stock or equity of the
corporation, company, or other entity.
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1.5
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“EFFECTIVE DATE” means
January 02 2006.
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1.6
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“END
USERS” shall mean purchasers of LICENSED PRODUCTS for their
own internal use according to the PRODUCT APPLICATION within the
MARKET SEGMENT and within the TERRITORY.
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1.7
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“EXHIBIT” shall mean any schedule
attached hereto and initialled by PARTIES and which are herein
incorporated by reference and made a part of this
AGREEMENT.
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1.8
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“IP
RIGHTS/LICENSEE” shall mean all intellectual property rights
relating to PRODUCTS/LICENSEE, including but not limited to issued
patents or pending patent applications already assigned or
exclusively licensed to LICENSEE, prior to the execution of this
AGREEMENT and all future patents and pending patent applications
that become assigned or exclusively licensed to LICENSEE following
execution of this AGREEMENT, where any such patent has neither
expired nor been held invalid by a court or other body of competent
jurisdiction, from which no appeal has been, or may be, taken, and
where any such patent application has not been abandoned, as well
as all rights in technical information, know-how, processes,
procedures, protocols, techniques and formulas which are not
covered by such intellectual property rights but which are
necessary for practicing the aforementioned intellectual property
rights.
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 6 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
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1.9
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“KREATECH” shall mean Kreatech
Biotechnology B.V. and its AFFILIATES.
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1.10
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“LICENSED
PRODUCTS” shall mean the PRODUCTS/LICENSEE as modified by
KREATECH and the manufacture, use or sale of which is covered by
one or more claims of PATENT RIGHTS and/or PATENT RIGHTS/THIRD
PARTY that has neither expired, been abandoned nor been held
invalid by a court or other body of competent jurisdiction, from
which no appeal has been, or may be, taken and which LICENSED
PRODUCTS are specified in Exhibit A3
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1.11
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“LICENSEE” shall mean Immunion
Corporation and its AFFILIATES.
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1.12
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“MARKET
SEGMENT” shall mean those segments of markets listed in
EXHIBIT D .
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1.13
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“NET
SALES” shall mean the gross revenues invoiced by LICENSEE
from the sale of LICENSED PRODUCTS less (i) regular trade and
quantity discounts; (ii) the costs for insurance and
transportation; (iii) taxes, tariff duties and value added
taxes or other governmental levies and (iv) amounts allowed or
credited due to returns of defective products (which will never
exceed the original billing or invoice amount), as calculated in
accordance with article 7 of this AGREEMENT.
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1.14
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“PATENT
RIGHTS “ shall mean KREATECH’S rights in information or
discoveries covered by patents and/or patent applications, as
listed in EXHIBIT A-1 , and all divisions, continuations,
continuations-in-part, reissues, reexaminations or extensions
thereof, where any such patent has neither expired nor been held
invalid by a court or other body of competent jurisdiction, from
which no appeal has been, or may be, taken, and where any such
patent application has not been abandoned, as well as all rights in
technical information, know-how, processes, procedures, protocols,
techniques and formulas which are not covered by patent rights
and/or patent applications but which are necessary for practicing
the aforementioned patent rights and/or patent
applications.
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1.15
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“PRODUCT
APPLICATION” shall mean the use of the LICENSED PRODUCTS for
the applications listed in EXHIBIT C .
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1.16
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“PRODUCTS/LICENSEE” shall mean the
raw materials and products as specified in EXHIBIT A-2.1
that are supplied by LICENSEE to KREATECH in order to produce
LICENSED PRODUCTS.
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1.17
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“PRODUCTS/KREATECH” shall mean the
raw materials and products as specified in EXHIBIT A-2.2
that are supplied or owned by KREATECH and which will be used in
order to produce LICENSED PRODUCTS.
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 7 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
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1.18
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“RESELLER” shall mean any agent,
distributor or other reseller, [listed in EXHIBIT F ], who
purchases LICENSED PRODUCTS from LICENSEE for the sole distribution
to END USERS, where such LICENSED PRODUCTS are distributed to such
END USERS as supplied by KREATECH and are not being repackaged,
derivatized, modified quantitatively or qualitatively, incorporated
into other commercial offerings, or separated into individual
components to sell separately, other than explicitly authorized in
this AGREEMENT, according to guidelines outlined in a legal
document that confirms the obligations of such RESELLER to
LICENSEE.
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1.19
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“SUPPLY
PRICE”shall mean the supply prices for the LICENSED PRODUCTS,
as indicated in EXHIBIT J-2 .
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1.20
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“TARGET
AMOUNT” shall mean the minimum annual volume of LICENSED
PRODUCTS to be purchased by LICENSEE, which is related to the
agreed forecast and which is specified in EXHIBIT E-1
.
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1.21
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“TERRITORY” shall mean all countries
and territories listed in EXHIBIT B .
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1.22
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“ULS
TECHNOLOGY” shall mean the technology (partly) covered by
PATENT RIGHTS that consists of (i) the linkage of at least two
entities through coordination chemistry, (ii) removal of
unreacted linkage compounds; and/or (iii) the interaction of
complexes produced as a result of (i) with at least an other
entity.
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1.23
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“PATENT
RIGHTS/THIRD PARTY” shall mean all patents that have been
granted and will be granted from [**********], where any such
patent has neither expired, been abandoned nor been held invalid by
a court or other body of competent jurisdiction, from which no
appeal has been, or may be, taken, as well as any know-how relating
to such patent(s), as far as such rights have been licensed to
KREATECH in the [**********], as such patents are specified in
Exhibit A-1.
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Article 2. GRANT AND
RESTRICTIONS OF LICENSE
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2.1(a)
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KREATECH grants
to LICENSEE under the PATENT RIGHTS and PATENT RIGHTS/THIRD PARTY
and LICENSEE accepts upon the terms and conditions as set forth in
this AGREEMENT, a royalty-bearing, non-exclusive, non-transferable
license, without the right to sub-license, strictly (i) to
offer to sell, to sell, to distribute, to import or to export the
LICENSED PRODUCTS under private label to RESELLERS or END USERS for
the PRODUCT APPLICATION within the MARKET SEGMENT in the TERRITORY
and (ii) to internally use and to use or
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 8 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
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have used on
its behalf, to perform services for LICENSEE’s customers and
collaborators, the LICENSED PRODUCTS for the PRODUCT APPLICATION
within the MARKET SEGMENT in the TERRITORY. For the avoidance of
doubt, it is stated that LICENSEE or its RESELLER is entitled to
market the LICENSED PRODUCTS in its own package and under its own
private label, eventually in combination with other (raw)
materials, provided that such does not affect the (chemical)
structure of the LICENSED PRODUCTS.
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2.1(b)
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The license
granted in accordance with article 2.1(a) above does not –
without limitation— include the right (i) to
make or further process LICENSED PRODUCTS or (ii) to use
LICENSED PRODUCTS in manners or for purposes other than those
explicitly authorized in article 2.1.(a) above, including but not
limited to acting outside the scope of the specified TERRITORY,
PRODUCT APPLICATION or MARKET SEGMENT or sell the LICENSED PRODUCTS
to parties that are not RESELLERS or END USERS.
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2.2
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No license
under any patent or patent application other than those that
constitute PATENT RIGHTS is, or shall be deemed to have been,
granted to LICENSEE under this AGREEMENT.
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2.3
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Insofar
necessary for the processing of PRODUCTS/LICENSEE into LICENSED
PRODUCTS, LICENSEE grants to KREATECH under IP RIGHTS/LICENSEE, and
KREATECH accepts upon the terms and conditions set forth herein, a
non-exclusive license, without the right to sub-license, to use the
IP RIGHTS/LICENSEE solely for said processing. LICENSEE will at any
and all times timely and correctly supply KREATECH with the
required amount of PRODUCTS/LICENSEE needed for the production of
LICENSED PRODUCTS.
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Article 3. TRADE NAMES AND
TRADEMARKS
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3.1
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The LICENSED
PRODUCTS will be sold under the private label of LICENSEE or its
RESELLER and not under any of KREATECH’s trade names or
trademarks. LICENSEE is only entitled to use KREATECH’s
tradenames and trademarks as listed in EXHIBIT G insofar
such use reasonably arises from or relates to the sale,
distribution or other authorized form of use of the LICENSED
PRODUCTS under this AGREEMENT, provided that such use of trade
names and trademarks will at any and all times be carried out
properly and in accordance with any instructions given by KREATECH.
LICENSEE will in any event identify KREATECH as the owner of the
trade names and trademarks.
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 9 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
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3.2
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For any other
use of the trade names and trademarks, LICENSEE will need
KREATECH’s prior written consent. LICENSEE is not entitled to
register or otherwise claim any rights to trade names, trademarks,
domainnames or other signs that are indentical or similar to
KREATECH’s trade names and trademarks.
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3.3
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After
termination of this AGREEMENT, for any reason whatsoever, LICENSEE
will immediately cease and not resume any and all use of the trade
names and trademarks, or in any other way refer to KREATECH except
as may be required by law or regulation.
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Article 4. PATENT MARKING AND
PRODUCT LITERATURE
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4.1
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LICENSEE shall
indicate on the label of the LICENSED PRODUCTS that they are
“licensed from KREATECH Biotechnology B.V.”. LICENSEE
shall identify the LICENSED PRODUCTS used in the kits in accordance
with Exhibit A-1, in LICENSEE’s product literature associated
with the kits and on the appropriate kit label, as well as
advertising literature, including web based promotional literature
describing the kits. LICENSEE shall indicate KREATECH as the owner
of the PATENT RIGHTS/KB and related trademarks and brand names, and
indicate that the products are provided under license from KREATECH
in its product literature and advertising literature associated
with the kits, including web based promotional
literature.
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4.2
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With respect to
all sales in the United States, LICENSEE shall mark all LICENSED
PRODUCTS in accordance with the statutes of the United States
relating to the marking of patented articles (see 35 U.S.C. §
287). This shall include marking the LICENSED PRODUCTS with the
words “patent” or the abbreviation “pat.”,
followed by the number of all U.S. patents that constitute PATENT
RIGHTS, or when, from the character of the article, this cannot be
done, by fixing to it, or to the package wherein one or more of the
articles is contained, a label containing a like notice. LICENSEE
shall also comply with all such marking provisions as may be
permitted or required under the laws of countries outside the
United States, as soon as LICENSEE becomes aware or reasonably
should be aware of such provisions.
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4.3
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Notwithstanding
the above, the labeling will at all times meet with the
specifications as set forth in Exhibit A-1. LICENSEE will timely
and correctly provide the labels and other materials and
information as specified in Exhibit I. Furthermore, LICENSEE will
ensure that the RESELLERS appointed by LICENSEE will also meet with
the terms and conditions concerning labeling as laid down in this
Agreement and will therefore not, without limitation, remove or
change the labeling or the packaging.
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 10 of 42
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KREATECH:
_________
|
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LICENSEE:
_________
|
CONFIDENTIAL
|
4.4
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Insofar the IP
RIGHTS/LICENSEE require any specific product marking or labeling,
LICENSEE gurantees that it will use its reasonable efforts to fully
and correctly comply with such requirements.
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4.5
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In the event
the product marking will be carried out by KREATECH, LICENSEE
ensures to timely and correctly provide the labels and other
materials and information necessary for such product
marking.
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Article 5. CONFIDENTIALITY AND
PUBLICITY
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5.1
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Each party
acknowledges and agrees that it may receive certain information
which it considers to be confidential, originating from the other
party (hereinafter the “Donor Party”).
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5.2
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“Confidential Information” shall
mean all information regarding the PATENT RIGHTS, IP
RIGHTS\LICENSEE, LICENSED PRODUCTS, PRODUCTS\LICENSEE or
PRODUCTS\KREATECH that is received by a party to this AGREEMENT
(hereinafter the “Receiving Party”) from the Donor
Party, and all other information from or concerning the Donor Party
that must reasonably be regarded as having a confidential nature,
except for information that:
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(a)
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was in the
public domain prior to the receipt under this AGREEMENT, or
thereafter becomes part of the public domain through no fault of
the Receiving Party;
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(b)
|
the Receiving
Party can show by credible written evidence was in its possession
at the time of receipt without an obligation of confidentiality;
or
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(c)
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is received by
the Receiving Party from a third party that is not under an
obligation to maintain the information in confidence; or
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(d)
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after
disclosure, is received by the Receiving Party from a third party,
unless the Receiving Party knows or could anticipate that such
party was not entitled to receive and/or transfer the information
concerned.
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All
Confidential Information transmitted under this AGREEMENT shall
where possible be marked or identified by the Donor Party as
“Confidential” or similar notice at the time of its
disclosure under the terms of this AGREEMENT, but the failure to so
mark information disclosed hereunder shall not prevent the
information disclosed from being Confidential
Information.
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5.3
|
All
Confidential Information received under this AGREEMENT shall be
maintained by the Receiving Party in confidence, shall not be
disclosed to any other person or entity and shall not be used by
the Receiving Party, in each case except as expressly provided by
this AGREEMENT without prior written approval of the Donor Party.
The obligation of the Receiving Party to maintain Confidential
Information in
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 11 of 42
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KREATECH:
_________
|
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LICENSEE:
_________
|
CONFIDENTIAL
|
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confidence
shall be considered satisfied if the Receiving Party takes the same
steps to maintain such Confidential Information in confidence that
it takes with respect to its own confidential information, but in
no event less than a reasonable degree of care.
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5.4
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Upon the
request of the Donor Party, all physical material, including, but
not limited to, chemical samples, documents, drawing, models,
computer diskettes and sketches, containing Confidential
Information shall be returned to the Donor Party prior to or
immediately upon any termination of this AGREEMENT or before the
expiration hereof, except that the Receiving Party’s Legal
Department may keep one copy of the Confidential Information in its
files solely for the purpose of Receiving Party determining its
compliance with its obligations under this AGREEMENT.
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5.5
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The Parties to
this AGREEMENT understand and agree that all intellectual property
rights, including but not limited to copyrights and patent rights,
or trade secret rights relating to Confidential Information of the
Donor Party are and shall remain the property of the Donor Party,
and that no transfer or license of any such rights is made solely
by the disclosure of Confidential Information under this
AGREEMENT.
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5.6
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The Receiving
Party may disclose Confidential Information of the Donor Party to
third parties if, and to the extent that, (i) such disclosure
is required by law or regulations, or (ii) such disclosure is
necessary to achieve the objectives of this AGREEMENT and such
third party has been informed of the confidentiality of the
Confidential Information and the obligations under this AGREEMENT
as to confidentiality and has agreed in writing to be bound to
maintain such Confidential Information in confidence under terms
and conditions substantially equivalent, in all material respects,
to the obligations of a Receiving Party hereunder with respect to
Confidential Information . The Receiving Party shall remain liable
to the Donor Party for any unauthorized disclosures of Confidential
Information by a third party who obtained the Confidential
Information from the Receiving Party in accordance with this
article 5.6.
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5.7
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The Receiving
Party hereby indemnifies and holds harmless the Donor Party against
any loss resulting from unauthorized disclosure or use of the
Confidential Information by the Receiving Party, its employees, its
agents, or others to whom the Confidential Information has been
disclosed by the Receiving Party. No indemnity payments hereunder
relieve the Receiving Party or any third party from liability under
applicable laws, such as intellectual property rights, including
but not limited to patents and copyrights, or trade secret laws,
and such payments do not constitute any grant or continuation of
grant of any express or implied license or covenant not to sue
under any intellectual property rights, including but not limited
to patents and copyrights, or trade secrets of the Donor
Party.
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5.8
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Neither
LICENSEE nor KREATECH shall not make any public
announcements
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 12 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
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regarding this
AGREEMENT or the subject matter thereof without the prior written
approval of both parties; provided, however that LICENSEE may make
such announcements and other disclosures without the prior consent
of KREATECH as may be deemed necessary by its legal counsel to
comply with applicable laws or regulations or requirements of any
exchange or market on which LICENSEE’s stock or other
securities may be listed. Manuscripts for any proposed (scientific)
publications by either party will be timely submitted to the other
party, meaning that the other party will at least have 30 days
before the intended publication, in order to either give or deny
its written approval as meant above, as well as exercise its right
to review and to comment upon the publication in order to protects
its Confidential Information, know-how and intellectual property
rights, in the broadest sense.
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5.9
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If required by
law, rule, regulation or order of any government, government agency
or court, the Receiving Party may disclose Confidential Information
of the Donor Party, but will give adequate prior written notice of
such disclosure to the Donor Party to permit the Donor Party to
intervene and to request protective orders or other confidential
treatment for its Confidential Information.
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5.10
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The obligations
of confidentiality of a party hereunder with respect to
Confidential Information shall exist while this AGREEMENT is in
force and for a period of five (5) years
thereafter.
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Article 6. SUPPLY AND
MANUFACTURING
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6.1
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KREATECH agrees
to sell and supply to LICENSEE such quantities of the LICENSED
PRODUCTS as LICENSEE may order in accordance with this AGREEMENT,
more specifically in accordance with LICENSEE’s forecasts
(see EXHIBIT E-2 ). LICENSEE acknowledges that, in the event
its purchase orders of LICENSED PRODUCTS substantially exceed the
TARGET AMOUNT according to the agreed forecast, the specifications,
especially with regard to delivery times and other specifications
depending on the available production capacity, may deviate and
will be agreed upon between Parties in good faith.
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6.2
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KREATECH’s general terms of supply,
attached hereto as EXHIBIT H , are applicable to the sales
and supply of the LICENSED PRODUCTS, and the terms and conditions
set forth in said EXHIBIT H are incorporated herein by
reference and made a part of this AGREEMENT. In the event of a
conflict between the general terms of supply set forth in
EXHIBIT H and the provisions of this AGREEMENT, the
provisions of this AGREEMENT will prevail.
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6.3
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The LICENSED
PRODUCTS will meet with the product specifications as set forth in
EXHIBIT I .
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ULS™ Supply and Marketing License
Agreement
Kreatech - Immunicon V2.0
Page 13 of 42
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KREATECH:
_________
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LICENSEE:
_________
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CONFIDENTIAL
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6.4
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LICENSEE will
place its orders for the LICENSED PRODUCTS 60 (sixty) days in
advance specifying quantities sufficient to perform 500 tests.
LICENSEE acknowledges that, in the event its orders of LICENSED
PRODUCTS substantially exceed its forecasts, the specifications,
especially with regard to delivery times and other specifications
depending on the available production capacity, may deviate and
will be agreed upon between Parties in good faith.
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6.5.1
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KREATECH’s liability for the LICENSED
PRODUCTS will be limited to the product specifications laid down in
EXHIBIT I and as specified in the general terms of supply.
LICENSEE itself will ensure adequate provisions in case of
(product) liability outside the scope of the specifications
guaranteed by KREATECH and will fully indemnify and hold KREATECH
harmless against any and all claims of RESELLERS, END USERS or
third parties in this respect.
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6.5.2
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In the event
that KREATECH is not able to fullfill its production obligations to
LICENSEE, KREATECH agrees, at the election of KREATECH, to (a) have
LICENSED PRODUCTS manufactured on behalf of LICENSEE by a third
party selected by KREATECH or (b) allow, and transfer temporarily
all know-how that may be necessary, to allow LICENSED PRODUCTS to
be manufactured by LICENSEE or by a third party on behalf of
LICENSEE, for the purpose of marketing, sale and/or distribution in
the TERRITORY, in the event that KREATECH fails to supply the
forecasted quarterly volumes for more than ninety (90) successive
days. In this case, however, LICENSEE shall be obliged to purchase
from KREATECH what KREATECH is able to supply of the minimum
purchase quantities ordered by LICENSEE, such that know-how
temporarily transferred by KREATECH shall only be used for
production of the quantity ordered that KREATECH is unable to
supply. In such event, KREATECH is obliged to provide all necessary
know-how for manufacturing of the LICENSED PRODUCTS to the third
party or LICENSEE, as applicable. The third party or LICENSEE shall
ceas
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