Exhbit 4.37
SUPPLY AND DISTRIBUTION
AGREEMENT
THIS AGREEMENT MADE AND ENTERED
INTO in the City of
Montreal, Province of Quebec, as of the 25 day of October,
1995.
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BY AND BETWEEN:
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FROSST
RADIOPHARMACEUTICALS/FROSST PRODUITS PHARMACO-RADIOACTIFS, a
division of MERCK FROSST CANADA INC.,
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a company organized and existing
under the laws of the Province of Ontario, having its principal
place of business at 16711 Trans-Canada Highway West Kirkland,
Quebec H9H 3L1
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(hereinafter referred to as
“MFCI” )
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PARTY OF THE FIRST
PART
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AND:
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SYNCOR INTERNATIONAL
CORPORATION , a company
organized and existing under the laws of the State of Delaware,
having its principal place of business at 20001 Prairie Street,
Chatsworth, California U.S.A. 91311
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(hereinafter referred to as
“Syncor” )
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PARTY OF THE SECOND
PART
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WITNESSETH:
WHEREAS MFCI
and/or certain of its Associates
manufacture, process, finish, market, distribute, package and/or
label, or cause to be manufactured, processed, finished, marketed,
distributed, packaged and labelled pharmaceutical and
radiopharmaceutical products including, without limitation, the
Products;
WHEREAS Syncor owns and operates a chain of nuclear
pharmacies in the Territory and prepares and sells
radiopharmaceuticals and nuclear medicine products and services
including unit doses prepared from the Products; and
WHEREAS Syncor desires to sell and distribute, under the
MFCI label, or unit doses for hospitals, the Products in the
Territory and MFCI is prepared to grant Syncor such rights, the
whole subject to the terms and conditions hereinafter set
forth;
NOW, THEREFORE, THIS AGREEMENT
WITNESSES THAT IN CONSIDERATION OF THE RESPECTIVE COVENANTS AND
AGREEMENTS OF THE PARTIES HEREINAFTER CONTAINED AND OTHER GOOD AND
VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE
HEREBY ACKNOWLEDGED BY EACH PARTY, THE PARTIES HEREBY COVENANT AND
AGREE AS FOLLOWS:
1.01
Wherever used in tins Agreement,
unless there is something in the subject matter or context
inconsistent therewith, the following words and terms shall have
the respective meanings ascribed to them as follows:
(a)
“Agreement”,
“this Agreement”, “these presents”,
“herein”, “hereby”,
“hereunder” , and similar expressions refer collectively to
this Supply and Distribution Agreement and the accompanying
Schedules;
(b)
“Approved
Assignee” shall
have the meaning ascribed to such term in Section 3.06
hereof;
(c)
“Associate” means any person who or which does not deal with
MFCI or Syncor, as the case may be, or is deemed not to deal with
MFCI or Syncor, as the case may be, at “arm’s
length” as that expression is construed and interpreted under
the Income Tax Act (Canada);
(d)
“Effective
Date” means the 9
day of June, 1995;
(e)
“Intellectual
Property” means all
inventions, patents, patent applications and issued patents,
designs, design applications and design registrations, trade marks,
trade mark applications, trade mark registrations, trade names
(whether registered or unregistered) copyright, copyright
applications and registrations, processes, know-how, technology,
formulae, customer lists, trade secrets, proprietary information
and all other rights and intellectual property owned, held or used
by MFCI and/or its Associates with respect to any and all of the
Products;
(f)
“Syncor
PDI” ***
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(g)
“Products”
means the radiopharmaceutical
products known as Frosstimage ® DTPA + and MDP +,
as same are processed, manufactured, formulated, and/or distributed
by MFCI as at the Effective Date, for sale and distribution as
radiopharmaceutical products and “Product” shall
mean any one such product;
(h)
“Product
Price” means
MFCI’s price to Syncor for the applicable Product (net of any
and all taxes, customs duties, excises, costs and charges relating
to transportation, freight, handling and insurance as calculated in
accordance with Section 5.03 hereof and
Schedule “B” annexed hereto; and
(i)
“Territoty” means the United States of America, its
territories and possessions.
2.01
The division of this Agreement into
Articles and Sections and the insertion of headings are for the
convenience of reference only and shall not affect the construction
or interpretation of this Agreement.
2.02
Words importing the singular number
only shall include the plural and vice versa, words importing the
masculine gender shall include the feminine and neuter genders and
vice versa, and words importing persons shall include individuals,
partnerships, associations, trusts, unincorporated organizations
and corporations.
2.03
This Agreement constitutes the
entire agreement between the parties with respect to the subject
matter hereof and there are no other written or verbal agreements
or representations with respect to the subject matter
hereof.
2.04
Every provision of this Agreement is
intended to be severable. If any term or provision hereof is
illegal or invalid for any reason whatsoever, such illegality or
invalidity shall not affect the validity of the remaining terms and
conditions hereof.
2.05
This Agreement shall be binding upon
and inure to the benefit of the respective heirs, executors,
administrators and other legal representatives and, to the extent
permitted hereunder, the respective successors and assigns of the
parties.
2.06
This Agreement replaces and
supersedes any prior agreement pertaining to the subject matter
hereof.
2.07
All amounts referred to in this
Agreement shall be in the lawful money of the United States of
America unless stated otherwise.
2.08
All Schedules annexed hereto are
incorporated herein fully by this reference.
® Trademark of Merck
& Co., Inc., Merck Frostt Canada Inc., licensed
user
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ARTICLE 3
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APPOINTMENT OF
SYNCOR
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3.01
Subject to the terms and conditions
set forth herein, MFCI hereby appoints Syncor as a non-exclusive
distributor of the Products within the Territory with the right and
authority to sell and/or distribute the Products, solely under
MFCI’s brand name or unit doses to hospitals in the
Territory. Nothing herein contained shall be deemed to restrict or
otherwise impair or impede the right and/or ability of MFCI and/or
its Associates, whether directly or through one or more Associates
or one or more third parties, in the Territory or elsewhere in the
world, to manufacture, process, finish, market, distribute,
package, label, appoint additional persons as distributors of any
of the Products, sub-contract any such rights to, or otherwise
enter into any arrangement whatsoever with, any person with respect
to any of the Products and/or otherwise deal in or with any of the
Products.
3.02
Syncor agrees to use its best
efforts to conduct adequate sales activities in the Territory in
order to expand the sales of the Products therein. Syncor shall
keep MFCI advised of general market and economic developments that
may affect the sale of the Products in the Territory.
3.03
For greater certainty, but without
limiting the generality of anything herein otherwise contained, it
is expressly understood and agreed that Syncor shall not sell
and/or distribute any of the Products outside of the Territory or
knowingly sell and/or distribute any of the Products to any
person(s) for resale and/or distribution outside the
Territory.
Syncor shall use its best efforts to
refer to MFCI all inquiries received by it in connection with the
sale and/or distribution of the Products outside the
Territory.
3.04
Save as otherwise expressly
permitted hereunder, no packaging, marketing, labelling, promotion,
advertising and distribution materials or programs shall use or
refer to MFCI’s trade names, trade marks, brand names or to
the words “Merck”, “Frosst”,
“Sharp” or “Dohme” or any acronyms and/or
combinations thereof without the prior written consent of MFCI.
Nothing herein shall confer upon Syncor or any Approved Assignee
any proprietary interest, without limitation, in the trademarks,
tradenames, patents, licenses or registrations of MFCI.
3.05
Syncor shall not, without the prior
written consent of MFCI, which consent shall not be subject to any
statutory provision or limitations whatsoever and may be withheld
arbitrarily at MFCI’s sole discretion:
(i)
sell, transfer or assign any of the
rights and authority granted Syncor pursuant to Section 3.01
hereof to any person including, without limitation, any Associate;
and/or
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(ii)
sub-contract or otherwise enter into
any other arrangement whatsoever with any person including, without
limitation, any Associate, with respect to any of the rights and
authority granted Syncor pursuant to Section 3.01
hereof.
3.06
For the purposes of this Agreement,
any person including, without limitation, any Associate, to whom
Syncor has, upon obtaining MFCI’s prior written consent as
set out in Section 3.05 hereof sold, transferred, assigned,
sub-contracted or otherwise made any other arrangement with respect
to any of the rights and authority granted to it pursuant to
Section 3.01, shall be referred to as an “Approved
Assignee”. The initial Approved Assignee list is set
forth as Schedule “D” annexed hereto.
3.07
As a pre-condition to the sale,
transfer or assignment to, and the sub-contracting or other
arrangement with, an Approved Assignee, the parties agree that,
without limitation, all such persons shall intervene into this
Agreement so as to bind themselves on a solidary basis, both among
themselves and with Syncor, to the fulfilment of all obligations,
undertakings, commitments and covenants of Syncor hereunder and to
furthermore confirm their acceptance of, and their agreement to be
bound by, all the terms and conditions of this
Agreement.
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ARTICLE 4
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TERM OF
AGREEMENT
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4.01
The term of this Agreement shall
commence on the Effective Date and shall terminate on the fifth
(5th) anniversary thereof unless terminated earlier pursuant to the
provisions herein contained.
4.02
The term of the Agreement shall be
automatically extended for successive additional periods of two (2)
years, unless either party hereto shall have notified the other in
writing at least one year (1) prior to the expiration of the
initial term, or any extended term of the Agreement, as the case
may be, of its intention to terminate the Agreement.
4.03
Notwithstanding any term or other
provision herein to the contrary, MFCI shall have the right to
terminate this Agreement with respect to any Affected Product(s)
(as hereinafter defined), without payment of any penalty,
indemnity, damages or costs whatsoever to Syncor and/or any
Approved Assignee, at any time and without any prior notice, in the
event MFCI ceases manufacturing and/or processing any of the
Products by reasons of any law, statute, ordinance, ruling or
judgment of any governmental authority, or of any court, tribunal,
administrative, or regulatory board or agency, domestic or foreign,
(such governmental authority, court, tribunal, administrative or
regulatory board or agency, domestic or foreign, is hereinafter
sometimes referred to collectively as “Competent
Authority” ), if, in the reasonable opinion of MFCI, such
law, statute, ordinance, ruling or judgment restricts and/or
impairs MFCI’s ability to manufacture, process, sell, market,
distribute, package, label
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or otherwise deal in or with any of
the Products (any such Product being herein referred to as an
“Affected Product” );
4.04
In the event that this Agreement is
terminated pursuant to Section 15.01(i), 15.01(ii), 15.01(iv)
or 15.02, Syncor agrees and undertakes that it shall, in the
Territory, immediately cease to sell and/or distribute the
Products, whether manufactured by MFCI or any Associate, and this
without prejudice to any other of MFCI’s or such
Associate’s rights and/or recourses whether at law or
pursuant to this Agreement.
4.05
Upon the termination of this
Agreement by the efflux of time or for any other reason whatsoever
including, without limitation, any default of MFCI hereunder,
Syncor shall, at its sole cost and expense, immediately surrender,
cancel and rescind or cause to be surrendered, cancelled and
rescinded all government registrations and/or authorizations
relating to the Products which Syncor may have obtained pursuant to
this Agreement (it being understood, however, that in the event
MFCI terminates this Agreement pursuant to Section 4.03
hereof, Syncor’s obligations under this Section 4.05
shall extend only to an Affected Product(s). In addition,
Syncor shall voluntarily file with the appropriate Competent
Authority all documents that may be required in connection with
such surrender, cancellation or rescission, and if requested by
MFCI, Syncor shall cooperate with MFCI in effecting the
cancellation of any identification of Syncor with any governmental
records or approvals applicable to the Products.
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ARTICLE 5
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SALE OF PRODUCT TO
SYNCOR
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5.01
During the term of this Agreement,
MFCI shall sell to Syncor, or otherwise arrange for one or more of
its Associates to sell to Syncor, the Products in such form, shape,
size and colour and in such standard case or carton quantities as
is offered by MFCI. MFCI agrees to deliver to Syncor the
Products packaged in accordance with laws and regulations relating
to the shipping and handlin g of the Products.
5.02
All orders for the Products shall be
subject to acceptance by MFCI or its supplying Associates, and all
sales shall be subject to the terms and conditions of sale
established in this Agreement. Except as otherwise agreed to in
writing by the parties, the terms and conditions of sale shall be
as set forth in Schedule “A” annexed hereto. No
provisions on Syncor’s purchase order forms which may impose
different conditions upon MFCI or any Associates of MFCI shall be
of any force or effect unless expressly agreed to in writing by
MFCI or its supplying Associate(s).
5.03
Notwithstanding anything to the
contrary herein otherwise contained, the price charged Syncor by
MFCI for the Products shall be the applicable Product Price set
forth in Schedule “B” annexed hereto.
The parties agree that, for the
first year of the term of this Agreement, the applicable Product
Price for Products sold by MFCI to Syncor during such first year
shall
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remain as set forth in
Schedule “B” annexed hereto. However, for each
subsequent year of the term of this Agreement, including any
renewal or extension thereof, the Product Price for each of the
Products shall be increased annually by a percentage equal to
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For greater certainty, the following
example will serve to illustrate the principle set out
above:
(a)
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5.04
Payment by Syncor for the Products
purchased by it pursuant to this Agreement shall be in United
States dollars upon the terms set forth in
Schedule “A” hereinabove referred to.
5.05
Notwithstanding anything to the
contrary herein otherwise contained, title to and risk of loss of
any Products purchased by Syncor pursuant to this Agreement shall
pass to Syncor ***.
5.06
Subject to Section 11.03 hereof
and provided that, from the date of delivery by MFCI of the
Product(s) in question to the common carrier designated by MFCI for
the purpose of shipping same to Syncor’s Toledo, Ohio
warehouse, the Frosstimage ® DTPA, No. 4 200 and 4
201 and MDP No. 4 198 and 4 199 have a minimum expiry date of
twelve and ten months, respectively, the sale of Products to Syncor
by MFCI shall be final.
® Trademark of Merck
& Co., Inc., Merck Frosst Canada Inc., licensed
user
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In the event any Frosstimage
® DTPA No. 4 200 and 4 201 or MDP no. 4 198 and 4
199 are delivered by MFCI to Syncor with short