EXHIBIT 10.1
Confidential treatment has been
requested for portions of this exhibit. The copy filed herewith
omits the information subject to the confidentiality request.
Omissions are designated as [***]. A complete version of this
exhibit has been filed separately with the Securities and Exchange
Commission.
Strategic Supplier Alliance
Agreement
This Strategic Supply Agreement
(“Agreement”), effective as of the date of last
signature affixed below (the “Effective Date”), is
entered into by and between the General Electric Company, a
corporation organized under the laws of the State of New York,
acting through its GE Healthcare Bio-Sciences business (“GE
Healthcare”) and Biochrom Limited, a company incorporated in
England and having its registered office at 22 Cambridge Science
Park, Milton Road, Cambridge CB4 0FJ, England
(“Biochrom”).
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a.
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General
Conditions of Supply .
Pursuant to the terms and conditions of this Agreement and its
Attachments, Biochrom shall sell to GE Healthcare, and GE
Healthcare shall purchase from Biochrom, those spectrophotometers
identified in Attachment C as instruments , branded as
Amersham and GE Healthcare offerings (the “Products”),
meeting the specifications set forth in Attachment C (the
“Specifications”), in such amounts as GE Healthcare may
order from time to time during the term of this Agreement. Unless
otherwise expressly stated, references to this Agreement include
all Attachments hereto.
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1.
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GE Healthcare
shall have exclusive, global rights excluding Canada (the
“Territory”) to sell, resell, market, distribute and
support the Products under the names [***] (the
“Names”), as defined in Section 19(b) below.
Biochrom will provide GE Healthcare with all the rights,
information and know-how required to enable GE Healthcare to sell,
resell, market, distribute and support the Products. GE Healthcare
may, at its sole discretion and under terms and conditions it
independently negotiates, utilize third parties for the
distribution of Products supplied by Biochrom under this Agreement.
Biochrom shall not be limited in its ability to manufacture,
supply, market, distribute, sell, resell or support any proprietary
or third party product(s) in the Territory which compete(s)
directly or indirectly, either on its own or through any party
other than GE Healthcare, with the Products during the Term of this
Agreement so long as the products do not use the Names or have the
same appearance as Products offered to GE Healthcare.
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3.
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Provided
Biochrom is able to meet GE Healthcare’s needs for Products
as set forth in Section 3(a) below, and provided further that
GE Healthcare, in its sole discretion, chooses to operate in the
spectrophotometer market, GE Healthcare will use commercially
reasonable efforts to sell Products, and will not sell other
products that are competitive to the Products during the term of
this Agreement;
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c.
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Biochrom shall
sell to GE Healthcare all components, spare parts, services,
service tools, and software licenses with respect to the Products
on a non-exclusive basis.
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d.
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Documents . The following attachments are an integral part
of this Agreement (the “Attachments”). The provisions
of each Attachment shall be incorporated by reference into and
deemed to be part of this Agreement. If any conflict exists between
the provisions of this Agreement and of the Attachments, or between
the provisions of the Attachments themselves, the order of
precedence shall be as follows:
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(2)
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Attachment K
(OEM Addendum)
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(3)
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Attachment A
(Annual Business Attachment)
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(4)
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Attachment B
(Purchased Material Quality Requirements)
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(5)
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Attachment C
(Products, Pricing, and Specifications)
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(6)
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Attachment D
(Supplier Integrity Statement)
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(7)
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Attachment F
(Quality Plan)
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e.
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Additional
Addenda . GE Healthcare
and Biochrom may enter into one of the following separate Addenda
modifying the type of relationship between the parties reflected in
the body of this Agreement and its various Attachments. To the
extent any such Addendum is separately executed by the parties and
makes reference to this Agreement, it shall be deemed to be
incorporated by such reference into this Agreement, shall form a
part hereof, and shall modify this Agreement as specified in such
Addendum. In such event, references herein to this Agreement shall
be deemed to include any such Addendum. In the event of conflict
between any terms of such Addendum and any other terms of this
Agreement and any Attachment, such Addendum shall take
precedence.
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Check Box (If
Applicable)
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¨
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Contract
Manufacturing Addendum
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a.
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Term .
The term of this Agreement will commence as of the Effective Date
and shall continue until December 31, 2012 (the “Initial
Term”). GE Healthcare may extend the Initial Term for
additional one (1) year periods (the “Extension
Term”). In such event, the Initial Term and the Extension
Term, if any, shall be referred herein as the
“Term”.
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b.
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Termination
for Convenience . Neither
party shall have the right to terminate this Agreement for
convenience during the first twelve (12) months. Thereafter,
each party shall provide the other party no less than twelve
(12) months’ written notice of its intention to
terminate the Agreement
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c.
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Termination
for Cause by GE Healthcare . If Biochrom breaches any material term of this
Agreement and Biochrom fails to correct such breach within sixty
(60) days after receiving written notice of such breach from
GE Healthcare, GE Healthcare may terminate this Agreement at any
time thereafter upon written notice to Biochrom; provided, however,
if such breach is not reasonably susceptible to cure within such
period, then GE Healthcare shall have the right to terminate this
Agreement immediately upon written notice. GE Healthcare may also
terminate all unfilled Purchase Orders without any liability except
for the price of any Products previously delivered and accepted by
GE Healthcare (subject to any set-off available to GE Healthcare).
GE Healthcare may also terminate this Agreement upon sixty
(60) days written notice to Biochrom if any proceeding under
the bankruptcy or insolvency laws is brought against Biochrom, a
receiver is appointed for Biochrom or Biochrom makes an assignment
for the benefit of creditors. Any such termination shall not
relieve Biochrom of its obligations and GE Healthcare shall retain
all legal and equitable remedies after such termination.
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d.
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Breach;
Default . If Biochrom
fails to perform or deliver Products required under this Agreement,
or if Biochrom repudiates or breaches any of the material terms
hereof, including, but not limited to, Biochrom’s warranties,
such events shall constitute a breach under Section 2(c). This
Section 2(d) shall not be deemed to limit in any manner GE
Healthcare’s rights to claim material breach by Biochrom
under Section 2(c) above.
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e.
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Termination
for Cause by Biochrom .
If GE Healthcare breaches any material term of this Agreement and
GE Healthcare fails to correct such breach within [***] after
receiving written notice of such breach from Biochrom,
Biochrom’s exclusive remedy shall be to terminate this
Agreement in full at any time thereafter upon written notice to GE
Healthcare. Biochrom’s obligations with respect to Product
delivered or Purchase Orders that have been accepted shall not be
affected by such termination; provided however that if
Biochrom’s termination is due to nonpayment by GE Healthcare
then Biochrom shall not be obligated to fulfill any other submitted
Purchase Orders, unless agreed upon in writing by the parties.
Biochrom may also terminate this Agreement upon [***] written
notice to GE Healthcare if any proceeding under the bankruptcy or
insolvency laws is brought against GE Healthcare or a receiver is
appointed for GE Healthcare or GE Healthcare makes an assignment
for the benefit of creditors. Any such termination shall not
relieve GE Healthcare of its obligations and Biochrom shall retain
all legal and equitable remedies after such termination. The
following events shall constitute a breach under this
Section 2(e): (i) if GE Healthcare does not make payments
to Biochrom as specified in the Agreement; or (ii) if GE
Healthcare repudiates or breaches any of the material terms hereof,
including, but not limited to, GE Healthcare warranties. Biochrom
has no obligation to provide Product on an ongoing basis if GE
Healthcare fails to correct any underpayment of invoices within
[***].
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f.
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Termination
of Purchase Order . GE
Healthcare may terminate any Purchase Order (as defined herein) in
whole or in part up until [***] before requested shipment upon
written notice to Biochrom.
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3.
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Forecast/Commitment/Quantities
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a.
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Forecasting/Sales Summary
. [***]
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b.
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No
Obligation . With the
sole exception of the Safety Stock described in Section 5(e)
below, it is the express understanding of the parties that GE
Healthcare shall have no obligation to purchase any minimum amount
of Product from Biochrom.
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c.
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GE
Healthcare Product Commitment . GE Healthcare’s commitment to purchase
Products from Biochrom shall be limited to Purchase Orders released
by GE Healthcare and accepted by Biochrom pursuant to
Section 5 of this Agreement.
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d.
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Material
Commitments : Unless
agreed otherwise in writing by the parties, GE Healthcare shall not
be responsible or in any way liable to Biochrom or any third party
with respect to any material commitments or production arrangements
in excess of the amounts or in advance of the times necessary to
meet GE Healthcare’s delivery schedule as set forth in its
applicable Purchase Order.
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b.
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Price/Cost
Reductions . Biochrom
warrants and represents to GE Healthcare that:
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c.
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Taxes . Unless prohibited by law, Biochrom will
separately indicate on its Invoice any tax that is required to be
imposed on its sale of Products to GE Healthcare.
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a.
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Purchase
Order Contents . A
purchase order released by GE Healthcare for Products
(“Purchase Orders”) may consist of a hard copy in the
form to be agreed upon by the parties, an electronic message, or
other written communication from GE Healthcare to Biochrom, which
complies with the requirements of this Agreement. Purchase Orders
released by GE Healthcare shall contain a Purchase Order number,
identify the delivery date or dates, and identify the quantities to
be released for delivery.
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b.
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Purchase
Order Lead Time .
[***]
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c.
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Changes to
Purchase Order . All
quantities ordered by GE Healthcare may be revised as requirements
change. GE Healthcare may at any time make changes in delivery
dates, shipping instructions, quantities ordered, or other terms of
the Purchase Order. GE Healthcare will confirm such changes in
writing, and Biochrom will advise GE Healthcare in writing if the
changes will result in changes to delivery schedules or other
changes.
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d.
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Acceptance
of Purchase Order .
Biochrom shall be deemed to have accepted a Purchase Order upon
receipt from GE Healthcare so long as such Purchase Order complies
with the terms of this Agreement. Biochrom shall send a written
acknowledgement of such Purchase Order within [***] of receipt of
Purchase Order. Biochrom may not reject any Purchase Order
submitted by GE Healthcare consistent with the terms of this
Agreement.
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a.
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Quality
Plans . The parties are
committed to quality in the performance of this Agreement.
Accordingly, all Products shall conform to the Purchased Material
Quality Requirements set forth in Attachment B , attached
hereto and incorporated by reference herein.
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b.
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Packaging
and Labeling . Biochrom
shall be responsible, at its own expense, for the safe and suitable
packaging and labeling of the Products, for complying with the
requirements included in Attachment B , any Packaging
Specifications included herein as Attachment I , and all
applicable laws and regulations relating to the packaging,
labeling, and carriage of the Products in the countries of
manufacture, shipment and destination to GE Healthcare.
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a.
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Transportation . Unless otherwise specified by GE Healthcare,
Biochrom agrees to ship Products to GE Healthcare’s primary
distribution center in Sweden, currently located at Björkgatan
30, S-751 84, Uppsala, Sweden using GE Healthcare’s
designated carrier with transportation charges billed directly to
GE Healthcare by the carrier. GE Healthcare will not pay premium
transportation charges unless authorized by it in writing. If
Biochrom ships Products by an unauthorized method or carrier,
Biochrom will pay any freight costs. Biochrom will release rail or
truck shipments at the lowest valuation permitted by
law.
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b.
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Title and
Risk of Loss . Title and
risk of loss will pass to GE Healthcare when the Products are
delivered to GE Healthcare’s designated carrier or when
delivered to the agreed carrier if GE Healthcare agrees not to use
GE Healthcare’s designated carrier.
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c.
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Shipments . Biochrom agrees to make shipments in the
quantities and on the dates to meet the requirements of the
applicable Purchase Order. Unless otherwise expressly stated, time
is of the essence. In the event that any shipment is not made in
time for delivery on the date and in the quantity set forth on the
applicable Purchase Order, GE Healthcare may: (i) return to
Biochrom some or all of the Products in the shipment at
Biochrom’s risk and expense, including without limitation
warehouse or handling costs or (ii) direct Biochrom to make an
expedited shipment of additional or replacement Products, with the
difference between any expedited routing and the Purchase Order
routing to be paid by Biochrom. Biochrom agrees to notify GE
Healthcare immediately if Biochrom has any reason to believe that
any Products will not be delivered as ordered, or a shipment will
not be made as scheduled.
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d.
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Packing
Lists . Each shipment
made by Biochrom shall include a packing list containing the
Purchase Order number, GE Healthcare product identification and
part number, quantity shipped, date of shipment, Country of Origin,
Product weight, and such other information as GE Healthcare may
reasonably request or is required by applicable law.
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e.
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Inspection
Period . [***]
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f.
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Health and
Safety . Biochrom shall
ensure that all information held by or reasonably available to it
regarding any potential hazards known or believed to exist in the
transport, handling, or use of any Products and/or performance of
any services shall be received by GE Healthcare in writing prior to
delivery of the Products and/or performance of the
services.
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8.
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Key
Performance Metrics [***]
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9.
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Partnership
Review Meetings [***]
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Biochrom’s Invoices shall
contain the Purchase Order number, item number of such release, GE
Healthcare part number(s) and revision number, invoice quantity,
unit of measure, unit price, total invoice amount, legal name of
Biochrom, phone number of Biochrom, address to which remittance
should be sent, and other such information as may be required by
law or reasonably requested from time to time by GE
Healthcare.
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a.
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Customer
Copies . Unless agreed
otherwise in writing by GE Healthcare, each Product delivered by
Biochrom shall include a manual or other form of documentation and
when relevant a software license, which contains sufficient
information for proper installation and use of the Product.
Additional documentation containing any applicable drawings,
schematics, software license(s), software documentation, design
history files, spare part lists, theory of operation, service
troubleshooting diagnostics, testing protocols, or instructions
necessary for the installation, operation, and maintenance of the
Products (the “Documentation”) shall be made available
to GE Healthcare for use in servicing the Products. The
Documentation shall be in English and in a commercially reasonable
format acceptable to GE Healthcare, and delivered to GE Healthcare.
Biochrom hereby grants to GE Healthcare the right to use, modify,
and distribute sublicenses, and create derivative works of any
Documentation provided to GE Healthcare for use with the marketing
and sale of the Products. GE Healthcare may not make material
changes to the Documentation or modify any Product specifications
without Biochrom’s prior written approval.
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b.
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Master
Copy . Biochrom shall
provide to GE Healthcare at no additional charge a complete set of
reproducible master copies of all Documentation listed in
subsection (a) above, which GE Healthcare may reproduce
without charge. If any change in the Product requires a change in
the Documentation, Biochrom shall promptly notify GE Healthcare of
the change and provide a revised reproducible master copy without
charge.
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13.
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Optional
Services with Product.
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a.
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Support . Biochrom shall provide second tier technical
and applications support to GE Healthcare for the Products.
Biochrom shall respond to GE Healthcare support requests within
[***] when said request is submitted on a week day. Biochrom shall
respond to GE Healthcare support requests within [***] when said
request is submitted on a weekend.
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a.
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Product
Warranty . Biochrom
represents and warrants that the Products will:
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(i)
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be delivered to
GE Healthcare free of all liens, claims, or
encumbrances;
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(ii)
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conform
strictly to and be manufactured in accordance with all express
specifications (including, but not limited to, those Specifications
set forth in Attachment C ), drawings, plans, instructions,
samples, or other descriptions;
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(iii)
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be fit and
sufficient for the purpose(s) for which they were manufactured and
sold to GE Healthcare
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(iv)
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be 1 st quality (upon shipment) and
merchantable;
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(v)
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be free from
defects in title, design, material, and workmanship, whether latent
or otherwise;
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(vi)
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have received
all applicable regulatory certifications, including CE marks, as
required;
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(vii)
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be
manufactured, processed, and assembled by Biochrom or by a third
party under Biochrom’s direction;
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(viii)
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be safe for
their intended use; and
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(ix)
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not contain
software code distributed under the GNU Public License (GPL) and do
not include any open source software, freeware, or free use
software.
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b.
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Intellectual
Property Warranty .
Biochrom represents and warrants that neither the Products, nor the
use of the Products, will infringe any patent or copyright trade
secret, trademark, or other proprietary right of any third party.
Biochrom also warrants that it has not and will not use or
incorporate into Products any intellectual property of others
without the party’s prior written consent, and that no other
third party, including without limitation any local, state, or
Federal government holds any property rights or security interests
in any Products.
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c.
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Services
Warranty . Biochrom
represents and warrants that all services to be performed by
Biochrom will be performed in a timely, professional, and
workman-like manner.
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d.
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Additional
Software Warranty .
Biochrom represents and warrants that it has not and will not
knowingly include in any software, and will use commercially
reasonable efforts within industry practices to ensure that such
software does not contain any software key function, virus, code,
routine, or device that may disable, damage, impair, erase,
deactivate, or electronically repossess such software or any
equipment or data.
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e.
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Execution
and Performance of Agreement .
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1.
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Biochrom represents and warrants
that it has the full right, power, and authority to enter into and
perform its obligations under this Agreement. Biochrom further
represents and warrants that the performance of its
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obligations under this Agreement
will not result in a violation or breach of, and will not conflict
with or constitute a default under any agreement, contract,
commitment, or obligation to which such party or any of its
Affiliates are a party or by which it is bound and that it has not
granted and will not grant during the Term of this Agreement or any
renewal thereof, including any conflicting rights, license, consent
or privilege with respect to the rights granted herein.
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2.
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GE Healthcare
represents and warrants that it has full right, power, and
authority to enter into and perform its obligations under this
Agreement. GE Healthcare further represents and warrants that the
performance of its obligations under this Agreement will not result
n a violation or breach of, and will not conflict with or
constitute a default under any agreement, contract, commitment, or
obligation to which such party or any of its Affiliates are a party
or by which it is bound and that it has not granted and will not
grant during the Term of this Agreement or any renewal thereof,
including any conflicting rights, license, consent, or privilege
with respect to the rights granted herein.
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f.
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Survival of
Warranties .
[***]
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i.
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Set-off . GE Healthcare may set-off any amount owed from
Biochrom against any amount payable at any time by GE
Healthcare.
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j.
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Remedies . The remedies contained in this Section 14
are the exclusive remedies available to the parties. under this
Agreement.
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k.
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Spare Parts
and Service . Biochrom
shall utilize its commercially reasonable efforts to maintain for
seven (7) years from the date of the last shipment of a
Product the capability to repair the Product and make such repair
service available to GE Healthcare and its customers, and furnish
documentation, spare parts, service tools, and instruments
necessary to service the Product effectively.
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l.
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Service
Capability . Biochrom
shall test all repaired Products and spare parts using the test
plan or procedure set forth in Attachment B .
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a.
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Indemnity
. Biochrom agrees to defend,
indemnify, protect, and hold harmless GE Healthcare and GE
Healthcare’s customers, affiliates, employees, agents,
servants, and representatives from and against any and all claims,
damages, losses, liabilities, and expenses, including reasonable
attorney’s fees and costs, of whatever nature, arising out of
or relating to: (i) the breach by Biochrom of any covenant,
representation, or warranty contained in this Agreement;
(ii) the breach by Biochrom of any covenant,
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representation, or warranty
contained in any Attachment or Addendum forming a part hereto,
including Attachment B ; or (iii) any negligent act or
omission, or willful misconduct of Biochrom or its agents,
employees, or subcontractors. GE Healthcare shall notify Biochrom
of any such claim, suit, or proceeding, and, at the parties mutual
agreement, may assist (at Biochrom’s expense) in the defense
of the same. GE Healthcare agrees to defend, indemnify, protect,
and hold harmless Biochrom and Biochrom’s customers,
affiliates, employees, agents, servant, and representatives from an
against any and all claims, damages, losses, liabilities, and
expenses, including reasonable attorney’s fees and costs, of
whatever nature, arising out of or relating to: (i) the breach
by GE Healthcare of any covenant, representation, or warranty
contained in this Agreement; (ii) the breach by GE Healthcare
of any covenant, representation, or warranty contained in any
Attachment or Addendum forming a part hereto: or (iii) any
negligent act or omission, or willful misconduct of GE Healthcare
or its agents, employees, or subcontractors. Biochrom shall notify
GE Healthcare of any such claim, suit or proceeding.
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b.
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Intellectual
Property Indemnity .
Biochrom agrees to defend, indemnify, protect, and hold harmless GE
Healthcare and GE Healthcare’s customers, affiliates,
employees, agents, servants, and representatives from and against
any and all claims, damages, losses, liabilities, and expenses,
including reasonable attorney’s fees and costs, of whatever
nature, resulting from a claim or allegation that the use or sale
of a Product infringes or otherwise violates any patent or
copyright of any third party.
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c.
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Third Party
Indemnity . Biochrom
shall immediately notify GE Healthcare if Biochrom knows or has
reason to believe that GE Healthcare has been or will be required,
as a result of activity arising out of or related to this
Agreement, by any court or administrative agency of the United
States or any state or by any legal process, to respond to any
subpoena, search warrant, discovery or other directive under the
authority of such court, administrative agency or process in
connection with any proceeding or investigation in which Biochrom
or any of its Affiliates, officers, directors, agents, employees,
or subcontractors is involved. Whether or not such notice is given
by Biochrom, if GE Healthcare is not a party to such proceeding,
Biochrom shall assist GE Healthcare in GE Healthcare’s
attempt to reduce the burdens of compliance with any such
directive, and, Biochrom shall reimburse any and all reasonable
expenses incurred by GE Healthcare and its Affiliates in complying
with any such directive, including, but not limited to,
attorneys’ fees, travel and lodging expenses and an hourly
labor rate as determined by GE Healthcare, in its sole discretion,
to estimate consistent with United States Generally Accepted
Accounting Principles and Practices (“GAAP”) the
fully-loaded hourly compensation and benefits payable to employees
or agents for all time spent by them in responding to such
matters.
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a.
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Applicable laws
. Biochrom represents, warrants,
certifies, and covenants that its performance under this Agreement
will comply with all applicable laws, ordinances, rules, and
regulations, and all conventions and standards, as amended from
time to time, of each and all countries where the Products are to
be manufactured, or Biochrom performance is to occur, and will
provide commercially reasonable assistance for GE Healthcare to
comply with all applicable laws, ordinances, rules, and
regulations, and all conventions and standards, as amended from
time to time, of each and all countries where the Products are to
be distributed or sold, including, without limitation,
those
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prohibiting bribery or similar
payments or practices, and those related to environmental
protection, import and export, duties and customs, wages, hours and
conditions of employment, occupational safety, discrimination,
sexual harassment, immigration, subcontractor selection, health and
safety, toxic substances, hazardous materials, and electrical or
electronic equipment. GE Healthcare represents, warrants, certifies
and covenants that its performance under this Agreement will comply
with all applicable laws, ordinances, rules, and regulations, and
all conventions and standards, as amended from time to time, of
each and all countries where the Products are to be sold or used,
including, without limitation, those prohibiting bribery or similar
payments or practices, and those related to environmental
protection, import and export, duties and customs, wages, hours and
conditions of employment, occupational safety, discrimination,
sexual harassment, immigration, subcontractor selection, health and
safety, toxic substances, hazardous materials, electrical or
electronic equipment, and minority owned businesses.
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b.
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Import/Export . Biochrom represents and warrants that it will
comply with all applicable laws, regulations, or requirements of
the United States, Sweden and Japan relating to import/export
matters. In the event any issues arise regarding the regulations of
any other countries the parties agree to address and remedy in good
faith. GE Healthcare represents and warrants that it will comply
with all applicable laws, regulations, or requirements of the
United States and Sweden relating to import/export matters for its
shipments of Products from Biochrom. Biochrom will also obtain all
applicable permits and licenses necessary to perform its
obligations under this Agreement, and upon GE Healthcare’s
request, will provide GE Healthcare with copies of such permits and
licenses. Where Products contain United States components, Biochrom
will also provide GE Healthcare with details of the United States
content value as a percentage of the Product price upon GE
Healthcare’s request. Additionally, Biochrom will provide
ECCN and Harmonized Tariff numbers assigned to Products upon
request.
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c.
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Country of
Origin. Biochrom will
mark each Product, and, as appropriate, Product packaging, labels,
or invoices with the country of origin for the Product, in
accordance with the applicable trade and customs laws. Biochrom
will also provide acceptable and auditable documentation that
establishes the country of origin for Product, including without
limitation, certifications of origin for Products qualifying for
NAFTA preferential duty provisions, as applicable.
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d.
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WEEE, RoHS
And Equivalent Directives . Biochrom shall indicate to GE Healthcare by
declaration any Product containing any: (a) lead, mercury,
cadmium, hexavalent chromium, polybrominated biphenyls (PBB),
polybrominated diphenyl ethers (PBDE), or any other hazardous
substances the use of which is restricted under EU Directive
2002/95/EC (27 January 2003) (“RoHS Directive”), as
amended, or under any equivalent directives or regulations.
Biochrom represents, warrants, and certifies that (i) none of
the Products contain any arsenic, asbestos, benzene,
polychlorinated biphenyls (PCBs), carbon tetrachloride, or any
chemical restricted under the Montreal Protocol on ozone-depleting
substances; and (ii) the Products shall conform with the
requirements and specifications set forth in the Specifications
described in Attachment C .
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17.
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Change
Notice Process
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a.
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GE
Healthcare Proposed Change s. [***]
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GE Healthcare Proprietary and
Confidential
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09oct06
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10
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b.
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Biochrom
Proposed Changes .
[***]
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a.
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Confidential
Information . During the
Term, each party (the “Recipient”) may receive or have
access to certain information of the other party (the
“Discloser”) that is Confidential Information of the
Discloser. For purposes of this Agreement, “Confidential
Information” shall mean any information disclosed by the
Discloser to the Recipient, whether technology-related or
business-related, whether furnished before or after the Effective
Date and irrespective of the form of communication, that is
considered competitive, confidential or proprietary in nature;
provided, however, that in order for oral information to be treated
as Confidential Information, it must be identified as confidential
and proprietary at the time of disclosure, and the substance of the
disclosure must be provided in writing within thirty (30) days
of the oral disclosure of such information. Information about the
functionality of the Products, software or firmware imbedded in or
used with the Products, Discloser financial or marketing
information, and information about the future product plans will be
deemed Confidential Information without the necessity of being
marked. All other written information must be conspicuously marked
using words such as “confidential” or
“proprietary” in order to be treated as Confidential
Information. The Recipient will protect the Confidential
Information with the same degree of care as the Recipient uses for
its own similar information, but no less than a reasonable degree
of care. Confidential Information may only be used by those
employees of the Recipient who have a need to know such information
for the purposes related to this Agreement, and the Recipient shall
inform such employees of the confidential nature of such
Confidential Information and the obligations of the Recipient
hereunder. The Recipient shall be responsible for any breach of
this Agreement by it or its employees to the same extent as though
such employees were parties hereto. The parties acknowledge that
all intellectual property rights are deemed Confidential
Information to be protected indefinitely. The parties also agree
that all other information, including but not limited to technical
information (which is not intellectual property rights) and
forecasts disclosed during the Term or prior to the formation of
this Agreement are deemed Confidential Information to be protected
for a term of ten (10) years from the date of
disclosure.
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b.
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Exclusions . The foregoing confidentiality obligations will
not apply to any information that is (a) already known by the
Recipient prior to disclosure, (b) independently developed by
the Recipient prior to or independent of the disclosure and can be
so proven, (c) publicly available through no fault of the
Recipient, (d) rightfully received from a third party with no
duty of confidentiality, (e) disclosed by the Recipient with
the Discloser’s prior written approval, or (f) `required
to be disclosed pursuant to any final and non-appealable order of a
court or governmental agency (such as U.K. ministries or U.S.
departments, including the Securities Exchange Commission and U.S.
Federal Trade Commission) of competent jurisdiction se
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