




EXCLUSIVE MARKETING AGREEMENT
THIS EXCLUSIVE MARKETING AGREEMENT
("Agreement") dated October 18, 2001 ("Effective
Date"), is made and entered into by and between XXX Technology, Inc., with
principal offices at ……………Ave., .................. Clara, ..................
.................. ("XXX"), and WWW Dental Impressions, Inc., with
principal offices at 8550 .................. Street, Culver City, YYY 90232
("WWW").
RECITALS
A. XXX is a corporation having its principal office and place
of business at 851 Martin Ave., .................. Clara, YYY
................... XXX is a corporation duly organized, validly existing and
in good standing under the laws of the State of .................., with the
corporate power to own property and carry on its business as contemplated by
this Agreement.
B. XXX is engaged in the manufacture, marketing and sale
of clear orthodontic appliances to Orthodontic Dentists throughout the world.
Each set of appliances, commonly referred to as an xyz® System, is
custom manufactured by XXX to fit an individual patient.
C. WWW is a corporation having its principal office and
place of business at 8550 .................. Street, YYY 90232. WWW is a
corporation duly organized, validly existing, and in good standing under the
laws of the State of YYY, with the corporate power to own property and carry on
its business as contemplated by this Agreement.
D. WWW is experienced in the direct marketing and
distribution of professional dental products to dental professionals.
E. XXX is desirous of having WWW become the exclusive,
except as to XXX and IASG (as defined below), marketing and sales
representative for the xyz® System to Non-Orthodontic Dentists (as
defined below) throughout the Territory (as defined below). As such representative
WWW will solicit orders and provide Training and Sales Support (as such terms
are defined below) for the xyz® System from Customers. The xyz®
System will be shipped directly to the Non-Orthodontic Dentists by XXX. Billing
and collection will be performed by XXX and WWW shall receive the WWW
Commission (as defined below).
F. XXX shall continue to market and sell the xyz®
System to Orthodontic Dentists (as defined below) and, subject to the terms of
Section II(D) hereof, IASG shall continue to market and sell the xyz®
System to Non-Orthodontic Dentists within IASG's
network.
G. The purpose of this Agreement is to set forth the
respective rights, duties, obligations, and responsibilities of XXX and WWW
with respect to the marketing of the xyz® System and the provision
of Training and Sales Support by WWW to Non-Orthodontic Dentists throughout the
Territory.
NOW THEREFORE, in consideration of recitals and the covenants and conditions
contained in this Agreement, the parties mutually agree as follows:
I.
DEFINITIONS
Terms used herein shall have the meanings associated
with common usage or general acceptance, whether industry specific or as used
in general business transactions; except that as used in this Agreement the
following terms shall have the meanings specified:
A.
Affiliate - the
term "Affiliate" as used in this Agreement shall mean, with respect
to any specified Person, any other Person that directly, or indirectly through
one or more intermediaries, controls, is controlled by, or is under common control
with, such specified Person.
B.
XXX Product
Trademark - the term "XXX Product Trademark" as used in this
Agreement shall mean a United States or Canadian Trademark that identifies a
Product.
C.
XXX Site - the
term "XXX Site" as used in this Agreement shall mean XXX's web site which is currently located at
www.invisalign.com; or such successor web site(s) or URL as XXX may designate.
D.
Case Accepted -
the term "Case Accepted" as used in this Agreement shall mean
acceptance by XXX, which acceptance shall not be unreasonably withheld or
delayed, of a purchase order from a Non-Orthodontic dentist for an xyz® System
from within the Territory, regardless of whether the xyz® System is
for single arch or a dual arch.
E.
Case Evaluation
- the term "Case Evaluation" as used in this Agreement shall mean the
review of the patient's initial tooth arrangement to determine whether the xyz®
System is an appropriate treatment for the patient's malocclusion.
F.
Change of
Control of WWW - the term "Change of Control of WWW" as used in this
Agreement shall mean the occurrence of any of the following with respect to WWW
at any time after the date hereof: (1) the sale or transfer (in any one or more
of a series of related transactions) of all or substantially all of the assets
of WWW or of more than fifty percent (50%) of the outstanding voting stock of
WWW, other than an offering of voting stock of WWW to the public pursuant to
the rules of the Securities Act of 1933, as amended, to: (a) any Person who sells
products that directly compete with clear polymeric shell appliance systems
used to reposition teeth, (b) any Person who manufactures products that
directly compete with clear polymeric shell appliance systems used to
reposition teeth, or (c) any Person who has a financial interest material to
such Person described in the foregoing clauses (a) or (b) (collectively,
"Prohibited Persons"); or (2) the merger of WWW with or into any
Prohibited Person.
G.
Co-Branded Site
- the term "Co-Branded Site" as used in this Agreement shall mean the
portion of the XXX Site which is established and co-branded by the parties in
order to accept purchase orders for Products that are submitted by Customers.
H.
Customer - the
term "Customer" as used in this Agreement shall mean a
Non-Orthodontic Dentist within the Territory.
I.
Consumer
Advertising - the term "Consumer Advertising" as used in this
Agreement shall mean television, radio, print, outdoor, direct mail or other
marketing or advertising used to create awareness in the general public of the
availability of the xyz® System as a form of treatment for
malocclusion.
J.
Dentist - the
term "Dentist" as used in this Agreement shall mean either a
Non-Orthodontic Dentist or an Orthodontic Dentist.
K.
Design Plan -
the term "Design Plan" as used in this Agreement shall mean the
set-up of a model of a patient's initial tooth arrangement in a three
dimensional CAD program and the subsequent morphing (sometimes referred to as
"staging") of the initial tooth arrangement by the CAD program to create
each intermediate tooth arrangement for that patient.
L.
WWW Commission -
the term "WWW Commission" as used in this Agreement shall mean a
commission equal to ***** of all payments received by XXX in accordance with
this Agreement for Product Sales to Customers.
M.
WWW Products -
the term "WWW Products" as used in this Agreement shall mean a
product made or distributed by WWW, other than the Products, including, but not
limited to, the WWW whitening gel and Splash Impression Material.
N.
Fabrication -
the term "Fabrication" as used in this Agreement shall mean the
creation of an xyz® System including aligners for each anticipated
intermediate tooth arrangement created pursuant to the patient's Design Plan.
O.
Financing - the
term "Financing" as used in this Agreement shall mean financing
provided through a third party financial services company of the Non-
Orthodontic Dentist's fee for the xyz® System.
P.
IASG - the term
"IASG" shall mean xyz Administrative Services Group, Incorporated, a
wholly-owned subsidiary of XXX.
Q.
Intellectual
Property Rights - the term "Intellectual Property Rights" as used in
this Agreement means the Patents, the Trademarks, and all inventions,
copyrights, know-how, trade secrets and all other proprietary rights that
relate to the design, manufacture, operation or service of a parties' products
or services or with respect to which a party has been granted rights by a third
party.
***** Confidential treatment requested for redacted
portion.
R.
xyz®
System - the term "xyz® System" as used in this Agreement
shall mean a system for repositioning teeth, comprising a plurality of
individual appliances, and all improvements thereto as XXX makes such
improvements generally available to its customers. Each appliance is configured
to be placed successively on the patient's teeth so as to reposition
incrementally the teeth from an initial tooth arrangement, through a plurality
of intermediate tooth arrangements, to a final tooth arrangement. The xyz®
System is covered by a series of Patents, properly assigned to XXX in the
United States Patent and Trademark Office, including but not limited to United
States Patent Nos. 5,975,893, 6,183,248, 6,210,162, 6,217,325, 6,227,850 and
6,227,851.
S.
Leads - the term
"Leads" as used in this Agreement shall mean a telephone call made by
any interested consumer to XXX's call center to gather information about the xyz System and seek
referral to a Dentist who is certified to use the xyz System.
T.
Minimum Sales
Quota - the term "Minimum Sales Quota" as used in this Agreement
shall have the meaning set forth in Section VIII(D).
U.
Non-Orthodontic
Dentist - the term "Non-Orthodontic Dentist" as used in this
Agreement shall mean a dentist, other than an Orthodontic Dentist, who is
licensed in the Territory.
V.
Non-Orthodontic
Training Day - the term "Non-Orthodontic Training Day" shall mean a
single full day of training provided by WWW to Customers in which all attending
Customers become certified to use the xyz System.
W.
On-Going Design
Management - the term "On-Going Design Management" as used in this
Agreement shall mean helping Non-Orthodontic Dentists work through problems
that arise in the treatment of malocclusion that may or may not result during
treatment with the xyz® System. Such On-Going Design Management may
include a Design Plan and the Fabrication and delivery of a new xyz®
System for a particular patient.
X.
Orthodontic
Dentist - the term "Orthodontic Dentist" as used in this Agreement
shall mean a licensed practicing dentist, who has received a certificate in advanced
graduate studies in orthodontics at an accredited dental institution.
Y.
Patents - the
term "Patents" as used in this Agreement shall mean any U.S. or
foreign patents or any utility models that are in force and have not been
declared wholly invalid by a court of competent jurisdiction.
Z.
Patient
Insurance Reimbursement - the term "Patient Insurance Reimbursement"
as used in this Agreement shall mean the assignment of a procedure
reimbursement code to allow patients to obtain reimbursement from dental insurance
providers.
AA.
Patient
Prescription and Diagnosis Form- the term "Patient Prescription and Diagnosis
Form" as used in this Agreement shall mean XXX's
standard form, or any modification thereof that WWW and XXX may jointly agree
upon, used to help qualify whether treatment of malocclusion with the xyz®
System is appropriate for a particular patient.
BB.
Person - the
term "Person" as used in this Agreement shall mean an individual,
corporation, partnership, limited partnership, limited liability company, syndicate,
person (including, without limitation, a "person" as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended), trust,
association, entity or government or political subdivision, agency or
instrumentality of a government.
CC.
Products - The
term "Products" shall mean the products and services provided by XXX
to Dentists as listed on Exhibit A.
DD.
Professional
Liability Insurance Coverage - the term "Professional Liability Insurance
Coverage" as used in this Agreement shall mean professional liability
insurance which will cover incidents that may arise from treatment by a
Non-Orthodontic Dentist through the use of the xyz® System,
regardless of whether the particular Non-Orthodontic Dentist's primary
professional liability policy excludes orthodontic treatment.
EE.
Practice Based
Marketing - the term "Practice Based Marketing" as used in this
Agreement shall mean all marketing that may be used by Non-Orthodontic Dentists
to create awareness among their existing patients, or in some cases potential
patients, of the availability of the xyz® System as a form of
treatment. Such Practice Based Marketing shall include but not be limited to
counter cards, xyz® System product brochures, point of sale items
within the dental office, direct mail, in-office xyz® System videos,
and other advertising offered to Non-Orthodontic Dentists.
FF.
Product Sales -
the term "Product Sales" as used in this Agreement shall mean sales
of Products to Customers.
GG.
Sales Price -
the term "Sales Price" as used in this Agreement shall mean the price
for each Product set forth on Exhibit A.
HH.
Sales Support -
the term "Sales Support " as used in this Agreement shall include,
without limitation, the following services: (1) training for Non-Orthodontic
Dentists and their staffs on how to integrate the xyz System into their
practice, (2) ongoing education regarding the ways in which XXX processes cases
and how Dentists can best and most effectively clinically treat a case, and (3)
such other reasonable troubleshooting and sales support services as XXX may
reasonably request from time to time.
II.
Splash
Impression Material - the term "Splash Impression Material" as used in
this Agreement shall mean any hydrophilic vinyl polysiloxany
impression material that WWW sells to Dentists under the Trademark
"Splash" or any successor Trademark developed by WWW for the same
products.
JJ.
Territory - the
term "Territory" as used in this Agreement shall mean the United
States and Canada.
KK.
Trade
Advertising - the term "Trade Advertising" as used in this Agreement
shall mean all marketing and advertising to Customers.
LL.
Trademark - the
term "Trademark" as used in this Agreement shall mean a trademark,
service mark, logotype or symbol which has achieved common law trademark status
in any jurisdiction and which identifies the products or services of a party or
a third party, as the case may be.
MM.
Training - the
term "Training" as used in this Agreement shall mean teaching the
Non-Orthodontic Dentists and their staffs: (1) the features and benefits of the
xyz® System, (2) how to market the xyz® System using the
Practice Based Marketing in order to generate cases, (3) how to evaluate a
patient to determine whether the xyz® System may be an appropriate
form of treatment, (4) how to gather, prepare and submit adequate information
about the patient such that XXX can properly prepare a Design Plan for that
patient, including but not limited to the proper technique for taking an
impression of sufficient quality as to permit Case Evaluation and a Design
Plan, (5) how to teach patients the appropriate way to use the xyz®
System, (6) how to use equipment and software that may be required to treat
patients using the xyz® System, and (7) all aspects of prescribing,
using, and promotion of Products in the Territory.
II.
APPOINTMENT AND
AUTHORITY
R. Appointment. Subject to the terms and conditions set forth herein, XXX does hereby
appoint WWW as the exclusive, except as to XXX and IASG as provided herein,
marketing and sales representative to solicit orders for Products from Customers
and to perform the other obligations specified in this Agreement. WWW hereby
accepts such appointment.
S. Restrictions. WWW shall not sell, offer to sell, or promote the Products outside the
Territory, or to Orthodontic Dentists anywhere.
T. Referrals. WWW
shall forward to XXX all inquiries relating to the Products that WWW receives
from Orthodontic Dentists within the Territory and from all customers or
potential customers outside the Territory.
U. Exclusivity. In the event that XXX receives requests for purchase of or information
relating to the Products from Customers, XXX shall forward such requests to
WWW. Under no circumstances shall XXX fabricate or accept orders for the
Products (1) from Customers, (2) from IASG or a subagent of IASG for sales by IASG
or any IASG subagent to Customers, or (3) from any Person, other than IASG, who
XXX knows intends to resell the Products to Customers, unless XXX complies with
Section III(F) below.
V. Subagents of WWW. WWW may appoint subagents with XXX's prior
written consent, which consent shall not be unreasonably withheld or delayed.
Regardless of the appointment of subagents, WWW shall remain responsible for
the performance of all its obligations hereunder. WWW shall notify XXX in
advance of all proposed agreements with subagents and shall submit to XXX for
its review any and all agreements and other documents between or involving WWW
and any proposed subagent with respect to the sale of Products. All subagents
must agree to be bound by the provisions of this Agreement, as well as any
further reasonable terms and conditions which XXX may at its sole discretion
reasonably choose to impose.
W. Conflict of Interest. WWW warrants to XXX that (1) neither WWW nor any Affiliate of WWW
currently represents or promotes any lines or products that directly compete
with clear polymeric shell appliance systems used to reposition teeth., and (2)
during the term of this Agreement, neither WWW nor any Affiliate of WWW shall,
without XXX's prior written consent, distribute,
sell, promote, or market within the Territory any lines or products that
directly compete with clear polymeric shell appliance systems used to
reposition teeth.
X. Independent Contractors. The relationship of XXX and WWW established by this Agreement is that
of independent contractors, and nothing contained in this Agreement shall be
construed to give either party the power to direct and control the day-to-day
activities of the other or allow one party to create or assume any obligation
on behalf of the other for any purpose whatsoever, except for (1) the marketing
of Products in accordance with the terms of this Agreement; (2) the
solicitation and referral of orders from Non-Orthodontic Dentists to purchase
Products from XXX; and (3) the performance of other obligations specified in
this Agreement. All financial obligations associated with WWW's
business are the sole responsibility of WWW.
I.
TERMS OF SALES
OF PRODUCTS BY WWW
R. Purchase Orders. This Agreement contemplates that Customers shall submit purchase orders
for Products (i) electronically using the Co-Branded
Site, (ii) using written order forms, or (iii) otherwise. No Products shall be
furnished to a Customer by virtue of this Agreement alone, but shall require
that a Customer submit a purchase order through one of the enumerated methods.
All such purchase orders are subject to XXX's
acceptance, which acceptance shall not be unreasonably withheld or delayed.
S. Terms and Conditions. All purchase orders for Products submitted by Customers during the
term of this Agreement shall be subject to the terms and conditions of this
Agreement which shall supercede any terms or
conditions contained in any communications between a Customer and XXX or
between WWW and XXX, whether through the Co- Branded Site or otherwise.
T. Orders Submitted through Co-Branded Site. The parties will use reasonable efforts to create a
mechanism within the Co-Branded Site, for example a unique identifier number,
to enable the tracking of sales of Products to Customers who have completed the
Training provided by WWW.
U. Sales Price Changes. The Sales Price for each Product may be changed by XXX from time to
time provided that (1) XXX shall give WWW sixty (60) days prior notice before
the change in Sales Prices becomes effective, and (2) the price of xyz Systems
to Customers shall at all times be substantially the same as the prices charged
by XXX to Orthodontic Dentists.
V. Billing, Collection and Payments. XXX shall be responsible for billing and collection
of the Sales Price from the Customers for orders placed and fulfilled under
this Agreement. Within fifteen (15) days of the end of each calendar month, XXX
shall pay WWW the WWW Commission for all Product Sales that are shipped by XXX
to Customers in such month. XXX shall include with the monthly remittance the
gross detail of invoices being remitted against such that WWW can verify the
accuracy of the remittance. Any amounts owed to WWW by XXX which have been
received by XXX and have not been remitted to WWW as required herein shall be
subject to a service charge at the lower of the rate of one and one-half
percent (1.5%) per month or the maximum rate permitted by law.
W. Orders Accepted by XXX or IASG. In the event that XXX fabricates or accepts orders for
the Products (1) from Customers, (2) from IASG or a subagent of IASG for sales
by IASG or any subagent of IASG to Customers, or (3) from any Person, other
than IASG, who XXX knows intends to resell the Products to Customers, XXX
agrees to do the following: (a) within ten (10) days of fabrication or receipt
of the order, notify WWW of receipt of the order by providing to WWW a copy of
the invoice for the order, (b) pay to WWW the WWW Commission for such Product
sale in accordance with subsection (E) above, and (c) credit the Sales Price of
the Product sale toward WWW' Minimum Sales Quota for the relevant sales period
and the bonus calculations set forth in Section IV(G) below.
X. Bonus. If WWW
exceeds the Minimum Sales Quota for a particular calendar year by an amount of
Product Sales equal to ***** (a "Bonus Increment"), then XXX shall
pay to WWW, in addition to the normal WWW Commission the following bonus
payments: ***** For example:
(a) If the Product Sales in any calendar year exceed
the WWW Minimum Sales Quota for such calendar year by an amount equal to *****;
(b) If the Product Sales in any calendar year exceed
the Minimum Sales Quota for such year by an amount equal to *****
(c) If the Product Sales in any calendar year exceed
the Minimum Sales Quota for such year by an amount equal to *****
For the purpose of calculating these bonus payments in
calendar year 2002, the three Minimum Sales Quotas that correspond with the
three sales periods that fall within calendar year 2002 shall be added together
and treated as a single Minimum Sales Quotas for calendar year 2002 and all
sales attributable to meeting each of those Minimum Sales Quotas shall be added
together to calculate whether WWW is entitled to a bonus under this Section
III(G) for calendar year 2002.
For the purpose of calculating these bonus payments in
calendar year 2003, the two Minimum Sales Quotas that correspond with the two
sales periods that fall within calendar year 2003 shall be added together and
treated as a single Minimum Sales Quotas for calendar year 2003 and all sales
attributable to meeting each of those two Minimum Sales Quotas shall be added
together to calculate whether WWW is entitled to a bonus under this Section
III(G) for calendar year 2003. Any bonus amount payable under this Section
III(G) shall be paid by XXX within ninety (90) days of the end of the calendar
year to which it applies.
IV.
WWW
RESPONSIBILITIES
A.
Training and
Sales Support by WWW. WWW shall, at
its sole expense, provide initial and continuing Training of and Sales Support
to Customers. The Training and Sales Support shall (1) be performed only
by specially and properly trained personnel of WWW or agents of WWW,
(2) be of the highest quality, and (3) be performed promptly. WWW
shall at its sole expense develop and deliver to the Non-Orthodontic Dentists
Practice Based Marketing materials and strategies. XXX shall have the right to
review and approve of all such materials, which approval shall not be
unreasonably withheld or delayed. WWW hereby agrees that (a) it shall use best
efforts to provide Training to (i) at least 3000
Customers between the Effective Date and March 31, 2002 and (ii) at least 5000
Customers in each of the first four (4) years following the date of this
Agreement, and (b) subject to Section IV(B)(2) below, it shall conduct eight
(8) Non-Orthodontic Training Days by December 31, 2001, and an additional
twenty-four (24) Non-Orthodontic Training Days by March 31, 2002
***** Confidential treatment requested for redacted
portion.
B.
Support of WWW by
XXX. XXX shall provide reasonable sales and
technical training, and technical support to WWW's
personnel, with the frequency and content of the training to be determined by
agreement between WWW and XXX. XXX and WWW shall each pay its own costs for
travel, food, and lodging during the training period. In addition to sales and
technical training, XXX shall cooperate with WWW in establishing efficient
promotional procedures and policies, as set forth in Section VI(E) below. XXX
shall promptly respond to WWW's reasonable technical
questions relating to the Products. XXX agrees that (1) it shall provide
any and all reasonable assistance requested by WWW (a) for the training of WWW'
staff, (b) for the training of WWW' trainers, (c) for the training of WWW' sales
force, and (d) with respect to the performance of WWW' obligations under this
Agreement, and (2) in consideration of the WWW Non-Orthodontic Training Day
commitments set forth in Section IV(A)(b) above, XXX shall (a) provide two (2)
full days of training to WWW' sales force by December 31, 2001, (b) it shall
ensure that one (1) XXX sales representative and one (1) Orthodontist certified
to use the xyz System attend each of the Non-Orthodontic Training Days
referenced in Section IV(A)(b) above.
C.
Marketing and
Promotion to Non-Orthodontic Dentists. WWW shall, at its sole expense, vigorously promote the sale of the
Products to Customers, beginning as soon as feasible after the date of this
Agreement, using generally the same channels and methods, exercising the same
diligence, and adhering to the same standards that it employs with respect to
other products sold by WWW. WWW shall advertise the Products in trade
publications within the Territory, participate in appropriate trade shows, and
directly solicit orders from Customers for the Products. WWW shall place
twenty-four (24) or more national trade magazine advertisements per calendar
year and exhibit Products at every non-orthodontic dental trade show in the
Territory with two thousand (2000) or more Non-Orthodontic Dentists in
attendance. WWW shall use reasonable efforts to keep XXX apprised of WWW' plans
and efforts with respect to such promotions, and XXX may comment to WWW with
respect to such promotions. WWW, however, shall have complete discretion with
respect to all decisions.
D.
Training Fees. For Training provided by WWW, WWW may charge each
Customer a fee. WWW shall submit to XXX for approval, which approval shall not
be unreasonably withheld or delayed, the amount of the fee that each Customer
shall be charged for the Training. The fee shall be no less than ***** per
Non-Orthodontic Dentist. The fee for the Training shall be paid directly to XXX
by the Non-Orthodontic Dentist. Within ten (10) days of the end of any month in
which XXX receives fees from Non-Orthodontic Dentists to whom WWW provided
Training, XXX shall pay WWW a fee per Non-Orthodontic Dentist equal *****, plus
*****.
E.
Customer Service. WWW shall, at WWW's sole
expense, provide any and all support for Customers and/or their staffs with
regard to billing and payment collection.
F.
Compliance with
Laws and Good Commercial Practices. WWW
shall use its best efforts to promote and sell the Products for use only by
qualified Customers in compliance with local laws and regulations and good
commercial practice and for uses and applications reasonably approved by XXX
for the Products. WWW and its employees and agents shall not promote the
Products for any indications or applications, as the case may be, not approved
for such Products by applicable regulatory authorities.
***** Confidential treatment requested for redacted
portion.
G.
Customer
Relationships and Reporting. WWW shall, at WWW's sole expense and consistent with the sales policies
of XXX and with good business practice: (1) place the Products in WWW's literature as soon as possible; (2) provide
adequate contact with existing and potential customers within the Territory on
a regular basis; and (3) assist XXX in assessing customer requirements for
the Products, including modifications and improvements thereto, in terms of
quality, design, functional capability, and other features. WWW shall provide
XXX as reasonably requested by XXX no more frequently than on a quarterly
basis: market research information, as reasonably requested by XXX for purposes
of XXX's market research, regarding competition and
changes in the market within the Territory. In particular, market research
information will include information on the practice types of the Non-
Orthodontic Dentists who purchase Products, and Product adoption rates of
Non-Orthodontic Dentists.
H.
Patient Contact. WWW acknowledges and agrees that it shall not be
permitted to contact or in any way communicate directly with patients in
connection with its Training, Sales Support, marketing, promotion or customer
support activities or for any other reason under this Agreement.
I.
Recordkeeping. XXX reserves the right to authorize a representative
of XXX, at XXX's expense, to audit WWW's records relating to orders for and sales of the
Products, the Training, the Sales Support, the Minimum Sales Quotas and any
other matters necessary to confirm compliance with this Agreement in the
Territory. Upon prior written notice, WWW shall provide reasonable access to
such records during normal business hours at WWW's
business locations. WWW shall maintain all such records at WWW's
location for the greater of two (2) years after termination of this Agreement
or as long as required by regulatory requirements in the Territory. WWW shall
promptly provide to XXX all information and documents received or prepared by
WWW relating to the Products. WWW reserves the right to authorize a
representative of WWW, at WWW's expense, to audit XXX's records relating to orders for and sales of the
Products, the Training, the Minimum Sales Quotas case start kits and any other
matters necessary to confirm compliance with this Agreement. Upon prior written
notice, XXX shall provide reasonable access to such records during normal
business hours at XXX's business locations. XXX shall
maintain all such records at XXX's location for the
greater of two (2) years after termination of this Agreement or as long as
required by regulatory requirements in the Territory. XXX shall promptly
provide to WWW all information and documents received or prepared by XXX
relating to the sale of Products to Customers.
J.
Limitation on WWW's Rights to the Products. WWW shall have no right to copy, modify, manufacture or remanufacture
any Product or part thereof and no license under any of XXX's
Intellectual Property Rights is granted to WWW hereunder, except for the use of
the XXX Product Trademarks as expressly provided in Section X(F) below. WWW
shall not make any changes, alterations, modifications or additions to the
Products without prior written approval of XXX.
V.
XXX'S
RESPONSIBILITIES
G. Supply of Information on Current and Future
Distribution. In order to develop a
coherent and strategic marketing and distribution plan for the xyz®
System, XXX shall provide to WWW a complete and detailed description of each
and every current marketing, distribution and/or sales plan currently being
implemented or planned for implementation with regard to the xyz®
System, including but not limited to the creative project cooperatives and XXX's distribution to Orthodontic Dentists, except that XXX
shall not be obligated to disclose any information which is subject to a
confidentiality commitment of XXX or which disclosure would violate privacy
rights of individual patients.
H. Supply of xyz® System Training Information. To assist WWW in providing Training, XXX shall
provide to WWW, free of charge, any and all training materials that XXX has
developed or may develop in the future with regard to the xyz®
System for use by WWW in its Training, which materials WWW may modify as it
deems necessary. All modifications shall be submitted to XXX for prior
approval, which approval shall not be unreasonably withheld or delayed.
I. Supply of xyz® System Information. To assist WWW in the marketing of its Training to
Customers and in the marketing of the xyz® System to Customers,
patients and potential patients, XXX shall provide to WWW, free of charge, any
and all marketing materials that XXX has developed or may develop in the future
with regard to the xyz® System, which materials WWW may modify as it
deems necessary. All modifications shall be submitted to XXX for approval,
which approval shall not be unreasonably withheld or delayed.
J. Case Evaluation. XXX shall perform for the Customers, a Case Evaluation from a suitable
impression (and, if available, periapical radiographs
of the patient's teeth) to determine whether the xyz® System is an
appropriate method for correcting malocclusion. XXX shall use reasonable
efforts to provide the conclusions of such evaluation to the originating
Customer and WWW within two (2) business days of delivery of the impression to
XXX.
K. Discounts. Through
the end of calendar year 2002, the parties agree that WWW shall have the right
to offer first time users a Five Hundred Dollar ($500.00) discount off the
Sales Price set forth on Exhibit A for that first time user's first Case
Accepted. WWW agrees that the $500 first time user discount must be redeemed
with respect to a Case Accepted within the thirty (30) days immediately
following the training provided by WWW. Through the end of the first full
calendar year of this Agreement, XXX agrees that it shall credit any discounts
or rebates, including but not limited to the $500 first time user discount,
toward the Minimum Sales Quotas for sales periods during that calendar year.
L. Customer Service. XXX shall provide technical support for the Customers and/or their
staffs with regard to Case Evaluation and On-Going Design Management.
M. Clinical Evaluations for the xyz® System. XXX shall provide to WWW as they become available
clinical evaluation results for the xyz® System, which clinical
evaluation results demonstrate its efficacy at treating Class I, Class II and
Class III malocclusions (inclusive of subdivisions and extraction cases).
N. Fabrication of the xyz® System. XXX shall use reasonable efforts to provide, in
appropriate cases and for those Customers who request the service, ClinCheck for review by the Customer within seven (7)
business days after acceptance. XXX shall use reasonable efforts to provide any
changes or modifications to the ClinCheck treatment
plan requested by the Customer within a reasonable amount of time. After ClinCheck has been approved by the Customer, XXX shall use
reasonable efforts to manufacture the xyz System and ship the xyz System to the
Customer within seventeen (17) business days.
O. Case-Start Kits. XXX shall provide to WWW as many case-start kits as WWW may need for
the solicitation of purchase orders for Products from Customers which
case-start kits WWW shall deliver to the Customers. Upon identification of an
xyz® System candidate, the Customers and/or staffs shall complete
the information in the case-start kit and return the information to XXX for
Case Evaluation. XXX shall advise WWW of the arrival of a case-start kit as
quickly as is reasonable under the circumstances.
P. Consumer Advertising. Each year XXX and WWW shall jointly develop Consumer Advertising. XXX,
with the assistance of WWW, shall develop and draft a comprehensive Consumer
Advertising plan not later than 60 days prior to the commencement of the
calendar year. At its sole expense and consistent with the Consumer Advertising
plan, XXX shall itself or with the assistance of one or more third party(ies): (1) develop the Consumer Advertising pieces stated in
the Consumer Advertising plan and (2) purchase the required media time and
space for the Consumer Advertising stated in the Consumer Advertising plan.
Each Consumer Advertising piece shall be shared with WWW and WWW shall provide
comments to XXX prior to use by XXX. In support of Consumer Advertising, XXX
shall spend, at a minimum, the following amounts on Consumer Advertising provided
that WWW has not given notice of termination of this Agreement:
a.
From the Effective
Date through the end of calendar year 2002, fifteen million dollars
($15,000,000).
b.
For the calendar
year 2003, *****.
c.
For the calendar
year 2004, *****.
d.
For the calendar
year 2005, *****.
e.
For the calendar
year 2006, *****.
Should this Agreement be renewed for the additional
five-year period pursuant to Section VIII(B), the Consumer Advertising to
Non-Orthodontic Dentists will be specified in the renewal agreement.
Without limiting the generality of the foregoing, XXX
specifically agrees that for no calendar year during the term of this Agreement
or any renewal thereof, shall the Consumer Advertising spent by XXX be less
than ***** of the Minimum Sales Quota for such calendar year.
K.
Allocation of
Leads. XXX shall allocate Leads generated by
Consumer Advertising between Dentists who are certified to use the xyz System
as follows:
(1) Dentists shall be assigned to one of three (3)
tiers of preference for receiving Leads depending on factors ("Tiering Criteria") which include, without limitation: (a)
the productivity of a Dentist (measured by the number of cases submitted on a
monthly basis), and (b) a Dentist's proximity to a caller. Where possible,
preference will be given by XXX in assigning Leads to Dentists in higher tiers
and no preference will be given to Orthodontic Dentists over Non-Orthodontic
Dentists.
***** Confidential treatment requested for redacted
portion.
(2) Non-Orthodontic Dentists who have completed
Training and been certified to use the xyz System but who have not yet submitted
cases, will be placed in the top tier for a sixty (60) day trial period during
which they will have the opportunity to demonstrate that they have the ability
to perform in accordance with the then-applicable Tiering
Criteria for the top tier. At the expiration of such sixty (60) day trial
period one of the following things will happen: (a) if the Non-Orthodontic
Dentist has performed in accordance with such Tiering
Criteria, then he or she will remain in such tier, (b) if the Non-Orthodontic
Dentist has failed to perform in accordance with such Tiering
Criteria, then he or she will be re-assigned to the appropriate tier.
(3) The parties agree to review Tiering
Criteria every six (6) months for modification, however XXX shall have sole
discretion over final decisions regarding Tiering
Criteria and the assignments made pursuant thereto.
(4) The Tiering Criteria
will be communicated to all Dentists who have been certified to use the xyz
System.
L.
Splashä Impression
Material. XXX shall use commercially reasonable
efforts to promote the use of WWW' Splashä Impression
Material with the xyz® System, provided such Splashä
Impression Material remains safe and effective for its intended use.
M.
*****
N.
XXXer Design Services. XXX agrees that (1) it shall use reasonable efforts
to establish a separate legal entity that is wholly-owned by XXX to provide
aligner design services to Dentists, and (2) WWW shall receive a commission of
***** on sales of such aligner design services to Customers during the term of
this Agreement.
VI.
WWW AND XXX
JOINT RESPONSIBILITIES
L. Financing Program. XXX and WWW shall use reasonable efforts to develop sources of
Financing for Customers for the xyz® Systems.
M. Professional Liability Insurance Coverage. XXX and WWW shall use reasonable efforts to work
with insurance providers to provide and develop a Professional Liability
Insurance Coverage program for Customers for treatment using the xyz®
System.
N. Patient Insurance Reimbursement. XXX and WWW shall use reasonable efforts to work
with dental insurance providers to allow for Patient Insurance Reimbursement.
O. Panoramic Radiographs and Cephalometric
Radiographs. XXX and WWW, in an effort to deliver a
turn-key business model for the Customers, shall use reasonable efforts to
develop and/or identify a network of radiology centers
that are readily available to Customers throughout the Territory, such that
Customers are able to refer patients to obtain, if necessary, panoramic
radiographic and cephalometric radiographic images
for transmission to XXX for a Design Plan.
***** Confidential treatment requested for redacted
portion.
E.
Trade
Advertising. Each year XXX and WWW shall jointly
develop Trade Advertising. WWW, with the assistance of XXX, shall develop and
draft a comprehensive Trade Advertising plan not later than 60 days prior to
the commencement of the calendar year. At its sole expense and consistent with
the Trade Advertising plan, WWW shall itself or with the assistance of one or
more third party(ies): (1) develop the Trade
Advertising pieces stated in the Trade Advertising plan and (2) purchase the
required media time and space for the Trade Advertising stated in the Trade
Advertising plan. Each Trade Advertising piece shall be shared with XXX and XXX
shall provide comments to WWW prior to use by WWW.
F.
Streamlining
Case Evaluation. Both WWW and XXX shall use
reasonable efforts to simplify and streamline the Case Evaluation process to
avoid false starts by the Customers (i.e. eliminate to the extent possible the
sending of information on patients for whom the xyz® System is not
an appropriate form of treatment).
VII.
WARRANTIES AND
LIMITATION OF LIABILITY
E. XXX Warranty Disclaimer. EXCEPT (i) FOR THE WARRANTY MADE DIRECTLY TO
CUSTOMERS OR END-USERS IN DOCUMENTATION INCLUDED WITH XXX'S PRODUCTS, OR (ii)
AS EXPRESSLY PROVIDED OTHERWISE HEREIN, XXX MAKES NO WARRANTIES TO ANY PERSON
OR ENTITY WITH RESPECT TO THE PRODUCTS OR ANY LICENSES OR SERVICES PROVIDED
HEREUNDER AND DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION,
WARRANTIES OF QUALITY, PERFORMANCE, NON-INFRINGEMENT, MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE. NOR ARE THERE ANY WARRANTIES CREATED BY
COURSE OF DEALING, COURSE OF PERFORMANCE OR TRADE USAGE. WWW' SOLE AND
EXCLUSIVE REMEDY FOR INFRINGEMENT IS PROVIDED IN SECTION X(A) HEREOF. THE
FOREGOING EXCLUSIONS ARE AN ESSENTIAL PART OF THIS AGREEMENT AND FORMED THE
BASIS FOR DETERMINING THE WWW COMMISSION AND ANY OTHER FEES TO BE PAID TO WWW
UNDER THIS AGREEMENT.
F. WWW Warranty Disclaimer. EXCEPT (i) FOR THE WARRANTY MADE DIRECTLY TO
CUSTOMERS OR END-USERS IN DOCUMENTATION INCLUDED WITH WWW'S PRODUCTS, OR (ii)
AS EXPRESSLY PROVIDED OTHERWISE HEREIN, WWW MAKES NO WARRANTIES TO ANY PERSON
OR ENTITY WITH RESPECT TO THE WWW PRODUCTS OR ANY LICENSES OR SERVICES PROVIDED
HEREUNDER AND DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION,
WARRANTIES OF QUALITY, PERFORMANCE, NON-INFRINGEMENT, MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE. NOR ARE THERE ANY WARRANTIES CREATED BY
COURSE OF DEALING, COURSE OF PERFORMANCE OR TRADE USAGE. XXX'S SOLE AND
EXCLUSIVE REMEDY FOR INFRINGEMENT IS PROVIDED IN SECTION X(A) HEREOF. THE
FOREGOING EXCLUSIONS ARE AN ESSENTIAL PART OF THIS AGREEMENT.
G. LIMITATION OF LIABILITY. IN NO EVENT SHALL XXX BE LIABLE FOR COSTS OF PROCUREMENT OF SUBSTITUTE
GOODS BY ANYONE. EXCEPT AS MAY BE SPECIFICALLY PROVIDED FOR IN SECTION X(A),
XXX SHALL NOT BE LIABLE TO WWW OR ANY OTHER PERSON OR ENTITY UNDER ANY
CONTRACT, STRICT LIABILITY, NEGLIGENCE OR OTHER LEGAL OR EQUITABLE THEORY, FOR
ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES
OR LOST PROFITS, HOWEVER CAUSED, IN CONNECTION WITH THE SUBJECT MATTER OF THIS
AGREEMENT, WHETHER OR NOT XXX HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGE.
H. LIMITATION OF LIABILITY. IN NO EVENT SHALL WWW BE LIABLE FOR COSTS OF PROCUREMENT OF SUBSTITUTE
GOODS BY ANYONE. EXCEPT AS MAY BE SPECIFICALLY PROVIDED FOR IN SECTION X(A),
WWW SHALL NOT BE LIABLE TO XXX OR ANY OTHER PERSON OR ENTITY UNDER ANY
CONTRACT, STRICT LIABILITY, NEGLIGENCE OR OTHER LEGAL OR EQUITABLE THEORY, FOR
ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES
OR LOST PROFITS, HOWEVER CAUSED, IN CONNECTION WITH THE SUBJECT MATTER OF THIS
AGREEMENT, WHETHER OR NOT WWW HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGE.
VI.
TERMINATION AND
RENEWAL RIGHTS; CHANGE OF CONTROL OF ………………..
E. Term. The term of
the Agreement commences on the Effective Date and continues through December
31, 2006, unless terminated as set forth below.
F. Renewal Rights. XXX shall have the right to extend the term of this Agreement for an
additional five years through December 31, 2011 provided that it advises the
WWW of its intent to renew in writing no later than February 28, 2006. Provided
that WWW has met it Minimum Annual Sales Quotas for calendar years 2004 and
2005, WWW shall have the right to extend the term of this Agreement for an
additional five years through December 31, 2011 provided that it advises XXX of
its intent to renew in writing no later than February 28, 2006. Both parties
agree that they shall use best efforts to develop Minimum Sales Quotas for each
of the five (5) years during the renewal term, each of which Minimum Sales
Quotas the parties agree shall cover a calendar year. If by March 31, 2006, the
parties are still unable to reach agreement on Minimum Sales Quotas for any of
the five years of the renewal term, WWW and XXX shall each appoint a
non-employee director of its respective company to negotiate Minimum Sales
Quotas for the renewal term. If the appointees are unable to reach an agreement
by May 31, 2006, then the following terms shall apply:
(1) The Minimum Sales Quotas for each calendar year
during the renewal period shall increase from the previous calendar year's
Minimum Sales Quota by fifteen percent (15%); or
(2) WWW shall have an option, exercisable until June
30, 2006, to sell back all of its rights under this Agreement for a payment
equal to three (3) multiplied by the total WWW Commissions earned by WWW during
the twelve (12) month period beginning on July 1, 2005 and ending on June 30,
2006. XXX shall make such payment in five equal installments
of twenty percent (20%), each of which shall be paid no later than the
following dates: September 30, 2006, October 31, 2006, November 30, 2006,
December 31, 2006 and January 31, 2007.
C.
Right of WWW to
Terminate Agreement for Convenience. WWW shall have the right to terminate this Agreement at any time and
for any reason upon one hundred eighty (180) days prior written notice to XXX.
Should another manufacturer, supplier, or provider of orthodontic appliances at
anytime offer a product or system which includes multiple, pre-manufactured,
removable orthodontic appliances and which represents a disruptive technology
which significantly reduces present and/or anticipated future sales of Product,
then WWW shall have the right to terminate this Agreement upon ninety (90) days
written notice to XXX.
D.
Right of XXX to
Terminate Agreement for WWW Failure to Meet Minimum Sales Quota.
(1) XXX's
Termination Rights.
Except as expressly provided otherwise below, XXX
shall have the right to give written notice of termination of this Agreement to
WWW within forty-five (45) days after the end of any sales period set forth
below where WWW has failed to meet the following minimum sales quotas (each, a
"Minimum Sales Quota"). In the event XXX provides such termination
notice, XXX shall have the right to set the effective date of such termination
to be any date within 180 days after the date of such termination notice. In
the event that XXX does not provide such notice or terminate this Agreement
within the time periods provided, XXX shall be deemed to have waived its
termination rights with respect to that particular sales period although such
waiver shall not affect XXX's termination rights with
respect to future sales periods.
a.
The Minimum
Sales Quota for the sales period extending from the execution of this Agreement
through the end of March 2002 shall be *****
b.
The Minimum
Sales Quota for the sales period extending from April 1, 2002 through June 30,
2002 shall be *****.
c.
The Minimum
Sales Quota for the last six (6) months of calendar year 2002 shall be *****.
d.
The Minimum
Sales Quota for the first six (6) months of calendar year 2003 shall be *****.
e.
The Minimum Sales
Quotas for the last six (6) months of calendar year 2003 shall be *****.
f.
The Minimum
Sales Quota for the calendar year 2004 shall be *****.
g.
The Minimum
Sales Quota for the calendar year 2005 shall be *****.
h.
The Minimum
Sales Quota for the calendar year 2006, shall be *****
2. Exceptions to XXX's
Termination Rights.
XXX's termination rights under this subsection (D) shall be subject to
following:
***** Confidential treatment requested for redacted
portion.
(a) XXX shall not have the right to terminate in any
sales period if the cumulative sales for that sales period when combined with
the sales during the immediately preceding two (2) sales periods meet or exceed
the combined Minimum Sales Quotas for the three (3) sales periods.
(b) In addition, in the event that WWW meets eighty
percent (80%) of any particular Minimum Sales Quota, WWW shall have one-half
(1/2) of the following sales period (the "Cure Period") to achieve
thirty-five percent (35%) of the Minimum Sales Quota for the Cure Period, in
which case XXX shall not have the right to terminate this Agreement for WWW'
failure to meet the Minimum Sales Quota for the sales period immediately
preceding the Cure Period. However, if WWW fails to achieve thirty-five percent
(35%) of the Minimum Sales Quota during the Cure Period, XXX shall have the
right to (a) give written notice of termination of this Agreement to WWW within
forty-five (45) days after the end of such Cure Period, and (b) set the
effective date of such termination to be any date within 180 days after the
date of such termination notice. In the event that XXX does not provide such
notice or terminate this Agreement within the time periods provided, XXX shall
be deemed to have waived its rights with respect to that particular sales
period and Cure Period although such waiver shall not affect XXX's rights with respect to future sales periods or Cure
Periods.
(c) In the event WWW achieves at least sixty percent
(60%) of the Minimum Sales Quota for such sales period and XXX then elects to
terminate this Agreement at the end of such sales period (the "Final Sales
Period") or following the failure to cure as provided for in the preceding
section, then XXX will pay WWW the following amounts for all orders received
from Non-Orthodontic Dentists who (i) have submitted
an order for at least one case prior to the effective date of any termination
of this Agreement under this Section (D), and (ii) either paid for such order
prior to or within ninety (90) days of the effective date of any termination of
this Agreement under this Section (D)(X) fifty percent (50%) of the WWW
Commission for all orders received from such Non-Orthodontic Dentists in the
next twelve (12) month period immediately following the Final Sales Period; (Y)
thirty-three percent (33%) of the WWW Commission for all orders received from
such Non-Orthodontic Dentists in the second twelve (12) month period following
the Final Sales Period; and (Z) twenty percent (20%) of the WWW Commission for
all orders received from such Non-Orthodontic Dentists in the third twelve (12)
month period following the Final Sales Period.
E.
XXX's Right to
Terminate Agreement for Convenience. At any time after December 31, 2003, XXX has the right, upon sixty (60)
days' notice to WWW, to terminate this Agreement by paying to WWW an amount
equal to five times WWW's past twelve month's revenue
calculated based on the "WWW Commission" that WWW received in the
twelve (12) months ending at the end of the month immediately prior to such
termination.
F.
Mutual Right to
Terminate for Cause. If either party
is in default in the performance of any material provision of this Agreement,
then the non-defaulting party shall have the right to terminate this Agreement
by giving written notice to the defaulting party which termination shall become
effective thirty (30) days after receipt by the defaulting party unless the
defaulting party cures the breach within such thirty (30) day period.
G.
Mutual Right to
Terminate for Insolvency. At the discretion
of the non-insolvent party, this Agreement shall terminate immediately upon
notice to the other party (1) upon the institution by or against such
other party of insolvency, receivership or bankruptcy proceedings or any other
proceedings for the settlement of such party's debts, (2) upon such party
making an assignment for the benefit of its creditors, or (3) upon such
party's dissolution or ceasing to do business.
(H) Effect of a Change of Control of WWW.
1. Definitions. For purposes of this Section
VIII(H), the following terms shall have the meanings specified:
(a) The term "Excess Sales Quota Percentage"
for any period of time shall mean the percentage derived from the following
calculation: (i) the Product Sales for such period of
time calculated on an annualized basis (e.g., multiplied by the number two (2)
if the period of time is six (6) months or two calendar quarters, and
multiplied by four (4) if the period of time is three (3) months or one (1)
calendar quarter); minus (ii) the applicable Original Annual Minimum
Sales Quota; divided by (iii) the applicable Original Annual Minimum
Sales Quota.
(b) The term "Original Minimum Annual Sales
Quota" shall mean: (i) ***** in the case of
calendar year 2002; (ii) ***** in the case of calendar year 2003; (iii) *****
in the case of calendar year 2004; (iv) ***** in the case of calendar year
2005; and (v) *****.
2. (H) Effect of a Change of Control of WWW.
1. Definitions. For purposes of this Section
VIII(H), the following terms shall have the meanings specified:
(a) The term "Excess Sales Quota Percentage"
for any period of time shall mean the percentage derived from the following
calculation: (i) the Product Sales for such period of
time calculated on an annualized basis (e.g., multiplied by the number two (2)
if the period of time is six (6) months or two calendar quarters, and
multiplied by four (4) if the period of time is three (3) months or one (1)
calendar quarter); minus (ii) the applicable Original Annual Minimum Sales
Quota; divided by (iii) the applicable Original Annual Minimum Sales Quota.
(b) The term "Original Minimum Annual Sales
Quota" shall mean: (i) ***** in the case of
calendar year 2002; (ii) *****in the case of calendar year 2003; (iii) ***** in
the case of calendar year 2004; (iv) ***** in the case of calendar year 2005;
and (v) ***** in the case of calendar year 2006.
2. Effect of a Change of Control of WWW. A
Change of Control of WWW (as defined in Section I(F) above) shall have the
following effects:
(a) Effective the first day of the first full calendar
quarter following the effective date of the Change of Control of WWW, the
Minimum Sales Quotas set forth in Section (VIII)(D)(1) above shall become
quarterly Minimum Sales Quotas which shall be calculated as follows.
(i) The Minimum Sales Quota
for the first quarter of any calendar year during the remaining term of this
Agreement shall be equal to the applicable Original Annual Minimum Sales Quota multiplied
by the higher of (X) 18%, or (Y) the Excess Sales Quota Percentage for the
prior six (6) months.
***** Confidential treatment requested for redacted
portion.
(ii) The Minimum Sales Quota for the second quarter of
any calendar year during the remaining term of this Agreement shall be equal to
the applicable Original Minimum Annual Sales Quota, multiplied by the
higher of (X) 22%, or (Y) the average of (I) the Excess Sales Quota Percentage
the prior three (3) months (i.e., the just-ended first quarter in such calendar
year), and (II) the Excess Sales Quota Percentage for the prior fourth, fifth
and six months (i.e., the fourth quarter from the immediately preceding
calendar year).
(iii) The Minimum Sales Quota for the third quarter of
any calendar year during the remaining term of this Agreement shall be equal to
the applicable Original Minimum Annual Sales Quota, multiplied by the
higher of (X) 28%, or (Y) the Excess Sales Quota Percentage for the prior six
(6) months.
i.
The Minimum Sales Quota for the forth
quarter of any calendar year during the remaining term of this Agreement shall
be equal to the applicable Original Minimum Annual Sales Quota, multiplied
by the higher of (X) 32%, and (Y) the Excess Sales Quota Percentage for the
prior six (6) months.
ii.
EXAMPLES:
a. *****
(b) Section VIII(D)(2)(c) shall terminate in its
entirety.
A. Return of Materials. All instructional, promotional, advertising, and similar materials, as
well as all customer database(s) developed jointly or solely by either party
for performance hereunder, as well as Intellectual Property Rights or other
data (including customer databases), photographs, samples, literature, and
sales aids of every kind developed hereunder shall, to the extent that they are
XXX's property, remain the property of XXX.
Additionally, upon termination, any and all copyrights which may have been
obtained by WWW on xyz® promotional materials shall be assigned to XXX.
Within thirty (30) days after the termination of this Agreement, WWW shall ship
all such items in WWW's possession or under WWW's control, as well as any records, files or other
information related to patients of Customers, to XXX, as XXX may direct, at XXX's expense. WWW shall not make, use, dispose of or
retain any copies of any confidential items or information which may have been
entrusted by XXX to WWW or any records, files or other information related to
patients of Customers. Effective upon the termination of this Agreement, WWW
shall cease to use all of XXX's Intellectual Property
Rights.
B. Limitation on Liability. In the event of termination by either party in accordance with any of
the provisions of this Agreement, neither party shall be liable to the other
due to such termination, for compensation, reimbursement or damages on account
of the loss of prospective profits or anticipated sales or on account of
expenditures, inventory, investments, leases or commitments in connection with
the business or goodwill of XXX or WWW. Termination shall not, however, relieve
either party of obligations incurred prior to the termination.
***** Confidential treatment requested for redacted
portion.
C. Post-Termination Use of Materials. After termination of this Agreement, WWW shall not
use any signs, equipment, advertising matter or material that refer to or are
related to XXX and shall not act or omit to act in any way that may indicate or
suggest a relationship with XXX and shall immediately return to XXX all XXX's property, promotional material, and proprietary
information.
D. Non-Competition. Should this Agreement be terminated by either party for any reason,
WWW agrees that for a period of eighteen (18) months following such
termination, neither WWW nor any Affiliate of WWW, shall, without XXX's prior written consent, distribute, sell, promote or
market in the Territory any lines or products that directly compete with clear
polymeric shell appliance systems used to reposition teeth. NOTWITHSTANDING ANY
CONTRARY PROVISION CONTAINED HEREIN, IN THE EVENT OF A BREACH OF THE FOREGOING
COVENANT BY WWW, AN AMOUNT EQUAL TO THE WWW COMMISSIONS EARNED BY WWW IN THE
LAST TWELVE MONTHS OF THE TERM OF THE AGREEMENT SHALL BE PAID BY WWW TO XXX AS
LIQUIDATED DAMAGES. BECAUSE XXX'S UP-FRONT AND ONGOING COSTS RELATED TO THIS
AGREEMENT TO INTRODUCE A NEW AND UNIQUE PRODUCT TO NON-ORTHODONTIC DENTISTS IN
THE TERRITORY AND TO THE MARKETING RIGHTS GRANTED TO WWW IN CONNECTION
THEREWITH ARE SUBSTANTIAL, INCLUDING WITHOUT LIMITATION, COSTS RELATED TO THE
FOLLOWING: (i) XXX'S SALES, MARKETING AND
DISTRIBUTION SUPPORT AND TECHNICAL TRAINING FOR WWW, (ii) XXX'S CONSUMER
ADVERTISING DEVELOPMENT OBLIGATIONS, (iii) XXX'S CONSUMER ADVERTISING SPENDING
COMMITMENTS SET FORTH IN SECTION V(J), AND (iv) XXX'S VARIOUS OTHER OBLIGATIONS
SET FORTH HEREIN, THE PARTIES ACKNOWLEDGE THAT XXX'S ACTUAL DAMAGES IN THE
EVENT OF SUCH A BREACH BY WWW WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO
DETERMINE. THEREFORE, BY PLACING THEIR SIGNATURES BELOW, THE PARTIES
ACKNOWLEDGE THAT THE LIQUIDATED DAMAGES AMOUNT HAS BEEN AGREED ON, AFTER
NEGOTIATION AS THE PARTIES' REASONABLE ESTIMATE OF XXX'S DAMAGES AND AS XXX'S
EXCLUSIVE REMEDY AGAINST WWW IN THE EVENT OF A BREACH OF THIS SECTION VIII(K)
BY WWW. IN THE EVENT WWW SHOULD CHALLENGE THE APPLICABILITY OR EFFICACY OF THIS
PROVISION OR IF THIS PROVISION SHOULD BE HELD TO BE VOID OR UNENFORCEABLE FOR
ANY REASON, XXX SHALL BE ENTITLED TO ANY AND ALL OTHER DAMAGES AND REMEDIES
OTHERWISE PROVIDED AT LAW.
XXX'S INITIALS _________ WWW' INITIALS ____________
I.
WARRANTIES AND
REPRESENTATIONS
A.
XXX
Representations. XXX warrants and represents
that it has the authority and right to execute, enter into, and perform this
Agreement and that it has no conflicting agreements which prevent it from
fulfilling its responsibilities enumerated herein, provided that WWW hereby
acknowledges and agrees that any resale, marketing, distribution or like
agreement between XXX and IASG shall not be deemed a conflicting agreement for purposes
of this Section IX(A).
B.
WWW
Representations. WWW warrants and
represents that it has the authority and right to execute, enter into, and
perform this Agreement and that it has no conflicting agreements which prevent
it from fulfilling its responsibilities enumerated herein.
II.
INTERPRETATION
AND ENFORCEMENT
A.
Indemnification. THIS INDEMINFICATION PROVISION STATES THE PARTY'S
ENTIRE LIABILITY FOR INFRINGEMENT CLAIMS.
(1) XXX Indemnification for Infringement Actions.
XXX has the obligation to defend WWW, its officer, directors, and/or
shareholders, or at XXX's option to settle, and XXX
agrees, at XXX's own expense, to defend WWW, its
officer, directors, and/or shareholders, or at XXX's
option to settle, any third party claim, suit or proceeding brought against
WWW, its officer, directors, and/or shareholders to the extent such claim, suit
or proceeding alleges that use of a Product infringes on such third party's
United States or Canadian Patent or United States or Canadian Trademark and XXX
agrees to indemnify WWW, its officer, directors, and/or shareholders against
any and all damages, costs and expenses (including legal fees) that a court
awards in a final judgment against WWW under any such claim or action. The
foregoing obligation of XXX does not apply with respect to Product or portions
or components thereof (a) that are not supplied by XXX, (b) that are used in
violation of this Agreement or in a manner not provided for or described in
documentation accompanying the Products, (c) that are modified after shipment
by XXX, if the alleged infringement relates to such modification, (d) that are
combined with other products, processes or materials where the alleged
infringement relates to such combination, (e) with respect to which the
Customer or patient continues allegedly infringing activity after being
notified thereof or after being informed of modifications that would have
avoided the alleged infringement, or (f) where use of the Product is incident
to an infringement not resulting primarily from the Products. XXX's obligation also shall not apply to trademark
infringements involving any marking or branding not applied by XXX or involving
any marking or branding applied at the request of WWW. If any Product or any
portion of a Product becomes, or in XXX's opinion is
likely to become, the subject of a claim of infringement, then XXX may, at its
option and expense, (i) procure for the Customer(s)
the right to continue using the Product or portion of a Product, as the case
may be, or (ii) replace or modify the affected Product or portion of a Product,
as the case may be, so that it becomes non-infringing. If neither alternative
is reasonably available, XXX may terminate this Agreement.
(2) XXX Indemnification for Product Liability
Actions. XXX has the obligation to defend WWW, its officer, directors,
and/or shareholders, or at XXX's option to settle,
and XXX agrees, at XXX's own expense, to defend WWW,
its officer, directors, and/or shareholders, or at XXX's
option to settle, any third party claim, suit or proceeding brought against
WWW, its officer, directors, and/or shareholders to the extent such claim, suit
or proceeding alleges that use of any of the Products cause injury to anyone,
except to the extent that the injury was caused by negligence or intentional
acts of WWW. XXX further agrees to indemnify WWW, its officer, directors, and
shareholders against any and all damages, costs and expenses (including legal
fees) that a court awards in a final judgment against WWW, its officer,
directors, and/or shareholders under any such claim or action.
(3) WWW Indemnification for Infringement Actions.
WWW has the obligation to defend XXX, its officer, directors, and/or
shareholders, or at WWW's option to settle, and WWW
agrees, at WWW's own expense, to defend XXX, its
officer, directors, and/or shareholders, or at WWW's
option to settle, any third party claim, suit or proceeding brought against
XXX, its officer, directors, and/or shareholders to the extent such claim, suit
or proceeding alleges that use of a WWW Product infringes on such third party's
United States or Canadian Patent or United States or Canadian Trademark and WWW
agrees to indemnify XXX, its officer, directors, and/or shareholders against
any and all damages, costs and expenses (including legal fees) that a court
awards in a final judgment against XXX under any such claim or action. The
foregoing obligation of WWW does not apply with respect to WWW Product or
portions or components thereof (a) that are not supplied by WWW, (b) that are
used in violation of this Agreement or in a manner not provided for or
described in documentation accompanying the WWW Products, (c) that are modified
after shipment by WWW, if the alleged infringement relates to such
modification, (d) that are combined with other products, processes or materials
where the alleged infringement relates to such combination, (e) with respect to
which the Customer or patient continues allegedly infringing activity after
being notified thereof or after being informed of modifications that would have
avoided the alleged infringement, or (f) where use of the Product is incident
to an infringement not resulting primarily from the WWW Products. WWW's obligation also shall not apply to trademark
infringements involving any marking or branding not applied by WWW or involving
any marking or branding applied at the request of XXX. If any WWW Product or
any portion of a WWW Product becomes, or in WWW's
opinion is likely to become, the subject of a claim of infringement, then WWW
may, at its option and expense, (i) procure for the
Customer(s) the right to continue using the WWW Product or portion of a WWW
Product, as the case may be, or (ii) replace or modify the affected WWW Product
or portion of a WWW Product, as the case may be, so that it becomes non-
infringing. If neither alternative is reasonably available, WWW may terminate
this Agreement.
(4) WWW Indemnification for Product Liability
Actions. WWW has the obligation to defend XXX, its officer, directors,
and/or shareholders, or at WWW's option to settle,
and WWW agrees, at WWW's own expense, to defend XXX,
its officer, directors, and/or shareholders, or at WWW's
option to settle, any third party claim, suit or proceeding brought against
XXX, its officer, directors, and/or shareholders to the extent such claim, suit
or proceeding alleges that use of a WWW Product causes injury to anyone, except
to the extent that the injury was caused by negligence or intentional acts of
XXX. WWW further agrees to indemnify XXX, its officer, directors, and/or shareholders
against any and all damages, costs and expenses (including legal fees) that a
court awards in a final judgment against XXX under any such claim or action.
B.
Indemnification
Procedures. A party's obligations to indemnify the
other party with respect to any third party claim, action or proceeding shall
be conditioned upon the indemnified party: (1) providing the indemnifying party
with prompt written notice of such claim, action or proceeding, (2) permitting
the indemnifying party to assume and solely control the defense
of such claim, action or proceeding and all related settlement negotiations,
with counsel chosen by the indemnifying party, and (3) cooperating at the
indemnifying party's request and expense with the defense
or settlement of such claim, action or proceeding which cooperation shall
include providing reasonable assistance and information. No indemnified party
shall enter into any settlement agreement for which it will seek
indemnification under this Agreement from the indemnifying party without the
prior written consent of the indemnifying party. Nothing herein shall restrict
the right of a party to participate in a claim, action or proceeding through
its own counsel and at its own expense.
C.
Intellectual
Property Rights.
(1) WWW agrees that (a) XXX owns all right, title, and
interest in the product lines that include the Products and in and to all XXX's Intellectual Property Rights, and (b) except as
expressly provided otherwise herein, WWW shall not, by virtue of this
Agreement, acquire any right, title or interest in or to any XXX's Intellectual Property Right. The use by WWW of any XXX's Intellectual Property Rights is authorized only for
the purposes herein set forth, and upon termination of this Agreement for any
reason such authorization shall cease.
(2) Except as expressly provided otherwise herein, XXX
agrees that shall not by virtue of this Agreement, acquire any right, title or
interest in or to any of WWW' Intellectual Property Rights.
D.
Sale Conveys no
Right to Manufacture or Copy. The Products
are offered for sale and are sold by XXX subject in every case to the condition
that such sale does not convey any license, expressly or by implication, to
manufacture, duplicate or otherwise copy or reproduce any of the Products. WWW
shall take appropriate steps with the Customers, as XXX may request, to inform
them of and assure compliance with the restrictions contained in this Section
X(D).
E.
Confidentiality.
(1) Each party acknowledges that by reason of its
relationship to the other hereunder, it will have access to certain proprietary
information and materials designated "proprietary" concerning the
other party's business, plans, customers, technology, and products (the
"Confidential Information"). Without limiting the generality of the
foregoing, XXX's Intellectual Property Rights shall
be considered Confidential Information of XXX and WWW' Intellectual Property
Rights shall be considered Confidential Information of WWW. Each party agrees
that it will not use in any way for its own account or the account of any third
party (except for the purpose of performing its obligations under this
Agreement), nor disclose to any third party, any such Confidential Information
revealed to it by the other party without the express written consent of the disclosing
party. Each of the parties further agrees to use the same degree of care
concerning Confidential Information as it uses to protect its own confidential
and proprietary technical information to prevent the unauthorized disclosure to
any third party of the Confidential Information received from the disclosing
party hereunder. The parties agree that they shall acquire no rights with
respect to Confidential Information of the other party received hereunder. The
parties agree that the Confidential Information received by a disclosing party
hereunder shall not be disclosed to any third party or to any employee, officer
or director of the receiving party, except to those employees, officers and
directors whose responsibilities require such disclosure for purposes of
performing the parties' obligations under this Agreement; provided that such
employees, officers and directors have entered into confidentiality agreements
with provisions substantially similar to those set forth in this
Section X(E).
(2) The obligations hereunder shall not apply to
Confidential Information:
i.
which the
receiving party can demonstrate by written records was known to the receiving
party prior to the date of disclosure by the disclosing party; provided that
such information was not obtained by the receiving party through disclosure by
a third party receiving such information in confidence from the disclosing
party;
ii.
which is now in
the public knowledge, or becomes public knowledge in the future other than by breach
of this Agreement by the receiving party;
iii.
which, as can be
established by written records, is independently developed by the receiving
party without benefit of Confidential Information received from the disclosing
party;
iv.
which is
disclosed to the receiving party, after the date of disclosure by the
disclosing party, by a third party having a right to make such disclosure;
v.
which is
required to be disclosed by applicable law or proper legal, governmental or
other competent authority or included in any filing or action taken by the
receiving party to obtain government approval to market the Products; provided,
however, that when permitted by the provisions of local laws, the receiving
party shall use its reasonable best efforts to protect the confidentiality of
such Confidential Information submitted to governmental agencies or authorities
pursuant to this Agreement and provided further that, with regard to a court
order or similar process, the party whose information is to be disclosed shall
be notified sufficiently in advance of such requirement so that it may seek a
protective order (or equivalent) with respect to such disclosure, which the
other party shall fully comply with; or
vi.
which is
required to be provided to XXX to support sales of Products to Customers.
(3) Upon termination of this Agreement, the receiving
party shall return to the disclosing party any tangible copies of any
Confidential Information provided to it by the disclosing party hereunder, and
any notes taken by employees, officers and directors of the receiving party
regarding the Confidential Information disclosed to it.
(4) The obligations of this Section X(E) shall
(a) apply to Confidential Information relating to the subject matter of
this Agreement disclosed during or prior to the execution hereof and
(b) survive termination of this Agreement for any reason.
(5) Neither party shall issue a press release which
discusses this Agreement or the other party without text approval from the
other party, which approval shall not be unreasonably withheld or delayed,
except that either party may issue a press release which that party in good
faith deems necessary to comply with securities or other governmental rules or
requirements.
F.
XXX Product
Trademarks.
(1) Use. Subject to subsection (F)(2) below,
during the term of this Agreement, WWW shall have the right to indicate to the
public that WWW is an authorized representative of the XXX Product Trademarks
and to advertise within the Territory such Products under the XXX Product
Trademarks. WWW shall not alter or remove any XXX Product Trademark applied to
the Products at the factory. Except as set forth in this Section X(F), nothing
contained in this Agreement shall grant to WWW any right, title or interest in
the XXX Product Trademarks and WWW is prohibited from seeking or assisting in
the registration of XXX Product Trademarks on behalf of WWW or anyone other
than XXX.
(2) Approval of Representations. All
representations of the XXX Product Trademarks that WWW intends to use shall
first be submitted to XXX for approval, which shall not be unreasonably
withheld or delayed, of design, color, and other
details or shall be exact copies of those used by XXX. If any XXX Product
Trademarks are to be used in conjunction with another trademark on or in
relation to the Products, then the XXX Product Trademark shall be presented
equally legibly, equally prominently, and of equal or greater size than the
other but nevertheless separated from the other so that each appears to be a
mark in its own right, distinct from the other mark.
(3) Further Assurances Regarding XXX Product
Trademarks. At no time during or after the term of this Agreement shall WWW
challenge or assist others to challenge any XXX Product Trademarks or the
registration thereof, or use or register, or attempt to use or register, any
Trademarks, marks or trade names confusingly similar to any XXX Product
Trademarks.
(4) Further Assurance Regarding General Trademarks.
Without in any way limiting subsection (F)(3) above, the parties hereby agree
that at no time during or for a period of eighteen (18) months after the term
of this Agreement shall either party challenge or assist others to challenge
any Trademark of the other party or the registration thereof, or use or
register, or attempt to use or register, any Trademarks, marks or trade names
confusingly similar to those of the other party.
G.
Notices. Any notice, request, demand or other communication
required or permitted to be given under this Agreement may be given by personal
delivery in writing, by registered or certified mail, postage prepaid, return
receipt requested, or by facsimile transfer (telefax).
Notice shall be deemed complete on the date of actual receipt, or five (5)
business days after mailing in the case of mailed notice. Said notices shall be
mailed or delivered as follows:
(1) In the case of WWW, to Mr...................,
President, WWW, Inc., at the address set forth in Recital I(C) hereof, or by
Facsimile at ……………., or to such other person or address as WWW may from time to
time furnish to XXX.
(2) In the case of XXX to, Mr...................,
Chief Executive Officer, XXX, Inc., at the address set forth in Recital I(A)
hereof, or by Facsimile at …………………….., or to such other person or address as
XXX may from time to time furnish to WWW.
H.
Entire Agreement. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter herein and merges
all prior discussions between them. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing signed by the party to be charged.
I.
Assignment. This Agreement constitutes a personal contract and
neither XXX nor WWW shall be permitted to transfer or assign any rights or duties
under this Agreement, or any part thereof, without the prior written consent of
the other party, except that (1) XXX may assign its right and duties in whole
to an acquirer of all or substantially all of its equity securities, assets or
product lines that are the subject of this Agreement; and (2) WWW shall have
the right to assign any of its rights or duties under this Agreement to (a)
either WWW Dental, Inc. or Westside Packaging, Inc., which companies the
parties recognize are affiliates of WWW with one-hundred percent (100%) common
ownership, or (b) subject to the provisions of Section VIII(H), an acquirer of
all or substantially all of its equity securities, assets or product lines that
are the subject of this Agreement.
J.
Force Majeure. Nonperformance of either party shall be excused to the
extent that performance is rendered impossible by strike, fire, flood,
governmental acts or orders or restrictions, failure of suppliers, war,
terrorism or any other reason where failure to perform is beyond the reasonable
control of and is not caused by the negligence of the non-performing party.
K.
No Implied
Waivers. The failure of either party at any time
to require the performance by the other party of any provision hereof shall not
affect in any way the full right to require such performance at any time
thereafter, and the waiver by either party of a breach of any provision hereof
shall not be taken or held to be a waiver of the provision itself.
L.
Controlling Law. This Agreement shall be governed by, and construed
and interpreted in accordance with, the laws of the State of YYY, United States
of America, without reference to conflict of laws principles or statutory rules
of arbitration. Subject to Section X(M) below, the federal and state courts
within the State of YYY, United States of America shall have exclusive
jurisdiction to adjudicate any dispute arising out of this Agreement. WWW and
XXX hereby expressly consents to (1) the personal jurisdiction of the
federal and state courts within YYY, (2) service of process being effected
upon either party by registered mail sent to the address set forth at the
beginning of this Agreement, and (3) the uncontested enforcement of a
final judgment from such court in any other jurisdiction wherein either party
or any assets of either party are present.
M.
Arbitration and
Attorneys' Fees. Any dispute, controversy
or claim arising out of or relating to this Agreement, or breach thereof, shall
be submitted to and finally resolved by arbitration under and in accordance with
the commercial rules of the American Arbitration Association, which shall
administer the arbitration and act as appointing authority. The arbitration
shall take place in San Jose, YYY, and shall be the exclusive forum for
resolving such dispute, controversy or claim. The decision of the arbitrators
shall be executory, final and binding upon the
parties hereto and judgment upon the award in the arbitration may be entered in
any court having jurisdiction thereof. The expense of the arbitration
(including, without limitation, the awarding of attorneys' fees to the
prevailing party) shall be paid as the arbitrator determines.
N.
Severability. If any provision of this Agreement is or becomes or
is held to be invalid or unenforceable, such provision shall be deemed amended
to the narrowest extent necessary to conform to applicable laws so as to remain
valid and enforceable or, if it cannot be so amended without materially
altering the intentions of the parties hereto, it shall be stricken and the
remainder of this Agreement shall remain in full force and effect.
O.
No Third Party
Rights. Except the right to indemnify the
officers, directors, and shareholders of each company as provided for in
Sections X(A)(1) and X(A)(2), nothing in this Agreement, whether express or
implied, is intended to confer any rights or remedies under or by reason of
this Agreement on any persons other than the parties hereto.
P.
Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.
Q.
Binding Effect. A mutually agreed consideration for XXX's entering into this Agreement is the reputation,
business standing, and goodwill already honored and
enjoyed by WWW under WWW's present ownership, and,
accordingly, subject to Section X(I) WWW agrees that WWW's
rights and obligations under this Agreement may not be transferred or assigned
directly or indirectly without the prior written consent of XXX. Subject to the
foregoing sentence, this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their successors and assigns.
R.
Headings. The section headings of this Agreement are for
convenience of reference only and shall not be deemed to alter or affect any
provision hereof.
S.
Construction. Where the context or construction requires, all
words applied in the plural shall be deemed to have been used in the singular,
and vice versa; the masculine shall include the feminine and neuter, and vice
versa; and the present tense shall include the past and future tense, and vice
versa
T.
Survival. Except to the extent expressly provided to the
contrary in this Agreement, any rights to accrued payments, any right of action
for breach of the Agreement prior to termination, and the following provisions
shall survive the termination of this Agreement: Sections I (as applicable),
II(F), II(G), III(B), IV(I), IV(J), VII in its entirety, VIII(B)(2) (in
accordance with its terms), VIII(D)(c), VIII(E), VIII(I), VIII(J), VIII(K),
VIII(L), IX in its entirety, X(A)-(E), X(F)(3) and X(G)-(T).
EXECUTED on the date first above written.
/S/ .................. ..................
.................. ..................
President & Chief Executive Officer
WWW Dental Impressions, Inc.
/S/ .................. ..................
.................. ..................
Chief Executive Officer
XXX Technology, Inc.
EXHIBIT A
LIST OF PRODUCTS, SERVICES AND PRICES
EXHIBIT A
LIST OF PRODUCTS, SERVICES AND PRICES
*****
Notes:
***** Confidential treatment requested for redacted
portion.
a.
Case Set-up
includes all processing through …………….®.
b.
3:3 submission
option must be indicated on the Design Plan form.
c.
Covers the costs
associated with one (1) case refinement, if necessary.
d.
Not available with
3:3 submission option.
e.
Required if
patient undergoes significant dental work or trauma during the course of
treatment, or if the patient does not comply with device instructions.
f.
Includes up to 5
sets of additional aligners after the final stage. If case is not completed
within 5 stages of the final aligner stage, additional aligners will be billed
as a Mid-Course Correction.
g.
Add shipping
charge. For U.S. domestic shipping, add $15.00 for each shipment. For
international shipping, including Canada and Mexico, add $25.00 for each
shipment. Any duties and taxes will be paid by the consignee or an agent
appointed by the consignee.