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Pilot Site Agreement

 

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Title:

Pilot Site Agreement

Entities:

OmniCorder Technologies, Inc.; Yale University

Date:

2006

Size:

Preview shows 19KB of 90KB total

Price:

$61

ID:

#1718668

 

 

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<SEQUENCE>4

<FILENAME>v043804_ex10-3.txt
<TEXT>
[ADVANCED BIOPHOTONICS INC. LOGO]

PILOT SITE AGREEMENT

This Pilot Site Agreement (the "Agreement") is made this 16th day of
December, 2005 (the "Effective Date"), by and between Advanced BioPhotonics Inc.
having its principal office at 125 Wilbur Place, Suite 120, Bohemia, New York
(hereinafter "ABP") and Yale University, School of Medicine, having its
principal office at 47 College Street, Suite 203, New Haven, Connecticut
(hereinafter the "Pilot Site").

WHEREAS ABP is supplying Pilot Site with advance exposure to ABP's
BioScanIR(R) system (hereinafter referred as "BioScanIR(R)") in
pre-commercialization phase;

WHEREAS the BioScanIR(R) has received 510(k) clearance from the United
States Food and Drug Administration, and reference to such approval and approved
labeling is attached as Appendix 1;

WHEREAS Pilot Site agrees to serve as a pilot test site for the
BioScanIR(R) system and therefore use the BioScanIR(R) system as defined in the
Protocol to test its functionality, performance and reliability to determine the
applicability of this technology to plastic surgery applications;

WHEREAS Pilot Site will provide ABP with regular written feedback,
recommendations and comments regarding or concerning any problems with the
BioScanIR(R), its performance, reliability, or functionality detected at this
stage by Pilot Site;

THEREFORE Pilot Site and ABP agree that Pilot Site will be a pilot test
site for ABP products specified in the Pilot Study Bailed Equipment (attached
hereto as Appendix 2) subject to the following terms and conditions:

1. DELIVERY, TITLE AND OWNERSHIP OF THE SYSTEM

1.1 Under this Agreement, ABP has delivered and entrusted to Pilot Site,
the Designated Equipment at the Designated Site, as those items are specifically
identified in Appendix 2, which may be amended from time to time and is attached
hereto and made a part hereof (hereinafter collectively or separably referred to
as the "System"). The System shall be used to collect data to evaluate the
location of the perforator vessels in vivo and to evaluate the healing process
of the transplanted flaps and for no other purposes, without ABP's prior written
consent.

1
<PAGE>

1.2 The purpose of the bailment of the System to the Pilot Site is for the
mutual benefit of the parties to advance plastic surgery research and
applications.

1.3 Delivery and Acceptance of the System - Pilot Site hereby acknowledges
delivery of the System by ABP at the Designated Site or such other location as
the parties may agree in writing. Pilot Site shall not store or use such System
at any other location, without ABP's prior written consent.

1.4 Modification of the System - ABP may, in its sole discretion, deliver
Software modifications or additional equipment (not originally identified in
Appendix 2) to the Pilot Site. Under the direction of ABP, Pilot Site shall
promptly install any Software modifications, and follow the use instructions
provided. Any such modifications shall only be used on the System pursuant to
this Agreement. Upon delivery, such additional equipment or Software
modification shall be deemed to become part of the bailed equipment which
comprise the System, subject to the terms and conditions of this Agreement,
without requiring a new agreement or revisions to this Agreement. The Designated
Equipment listed in Appendix 2, shall be deemed to be revised to include such
additional equipment or Software modification. PILOT SITE SHALL NOT MAKE ANY
MODIFICATIONS TO THE SYSTEM WITHOUT THE PRIOR WRITTEN CONSENT OF OR PURSUANT TO
WRITTEN INSTRUCTIONS FROM ABP.

1.5 Return of System - Upon ABP's receipt of the entire System returned by
the Pilot Site, together with the Pilot Site's express intent to terminate this
Agreement, the bailment with respect to the System shall be terminated. .

1.6 Within ten (10) days of termination or expiration of the Agreement,
Pilot Site shall cooperate in every manner necessary to expedite the return of
the System to a destination approved by ABP. ABP or its designated
representative will pack the System and will arrange for shipment of the System
to the ABP designated location. Upon ABP's receipt of all of the bailed
equipment and Software that comprise the System (as identified in Appendix 2)
returned by the Pilot Site, the bailment with respect to the System shall be
terminated. Thereafter, ABP shall terminate all existing financing statements
with respect to the bailment of the returned System.

1.7 Retention of Title - Title to and the right of immediate possession of
the System shall at all times remain with ABP and neither the Pilot Site nor any
other party claiming through the Pilot Site shall have any right of property
therein. Any accession or confusion of the System with other materials,
components, parts, accessories, or in any manner shall not affect ABP's right,
title, and interest in the System. The System shall not be transferred or
delivered to any third party, corporation, or any entity without the prior
written consent or instructions of ABP, and neither this Agreement nor the
bailment hereby granted may be assigned, encumbered, or used in any secured
transaction. The System shall not be used in any manner inconsistent with the
Protocol created in this Agreement and detailed in Appendix 3.

1.8 Liens or Other Encumbrances - Pilot Site covenants and warrants to ABP
that it will not, nor will it allow any third party to, assert any liens against
the System, or by any agreement, use the System as collateral in any secured
transaction, or perfect any security interest in or otherwise encumber the
System.

2
<PAGE>

1.9 Protection of ABP's Property - Pilot Site shall store the System in a
secure location. In addition, Pilot Site shall take all reasonable means to
store, situate, and maintain the System in a manner so as to be readily
identifiable and physically segregated from Pilot Site's property and the
property of others; and to take all necessary steps to keep its property and the
property of others from being commingled with the System. If physical protection
of the System is not practicable, then Pilot Site shall maintain adequate
accounting controls over the System on its books and records in accordance with
general accepted accounting principles and sound accounting practices for the
purpose of identification.

1.10 Financing Statements - Pilot Site expressly authorizes ABP to prepare
and file a financing statement pursuant to Article 9 of the Uniform Commercial
Code. The filing of such financing statement is not intended as a security
interest of ABP which attaches to the System; but rather is intended to protect
the rights of ABP as the true owner of the System. The filing of a financing
statement shall not affect the classification of this Agreement as a true
bailment, nor the System covered hereunder as bailed property. The Pilot Site
shall fully cooperate with ABP in effectuating the filing of such financing
statements.

1.11 Recovery of the System - At ABP's sole cost and expense (unless due
to the Pilot Site's negligence) the Pilot Site agrees to assist ABP in any legal
proceedings or other lawful means to obtain or recover possession of the System
withheld or detained, without ABP's consent, by others.

2. PILOT STUDY

Under the direction and supervision of Dr. Yuan Liu (the "Principal
Investigator"), Pilot Site shall use the System as described in the Protocol
(hereinafter the "Protocol," which is attached hereto as Appendix 3) to test
functionality, performance and reliability of the System (hereinafter referred
to as the "Pilot Study"). Pilot Site shall conduct the Protocol in a manner that
is consistent with the approved labeling, a copy of which is attached hereto as
Appendix 1. Pilot Site shall consult with ABP and provide ABP with the full
benefit of Pilot Site's knowledge, experience and skill in the field. Pilot Site
represents that such Pilot Study shall be performed in a professional manner and
according to the highest standards of the industry. Further, the
responsibilities of both ABP and the Pilot Site in developing and implementing
the Protocol are detailed in Section 5.

3. TERM AND TERMINATION

3.1 The term of this Agreement shall commence on the Effective Date and
shall terminate one (1) year after the Effective Date.

3
<PAGE>

3.2 ABP shall have the right to terminate this Agreement at its sole
discretion by giving a ten (10) day prior written notice to Pilot Site.

3.3 Pilot Site shall have the right to immediately terminate this
Agreement at its sole discretion upon written notice if there are any documented
health risks associated with Protocol implementation or the investigator leaves
the institution and a mutually agreeable replacement cannot be found.

4. LICENSE GRANT AND TITLE

4.1 Pilot Site is granted a non-exclusive, non-assignable and
non-transferable license to use the System in accordance with the terms and
conditions of this Agreement (the "License"). The license granted herein does
not include the right to make copies of the BioScanIR(R) Software Platform and
the Application Suites defined in Appendix 2 (hereinafter referred to,
collectively and individually, as the "Software"). Upon termination of this
Agreement, Pilot Site shall return any notes, memos, reports or records,
reproductions, correspondence or any document created by the Pilot Site
concerning the System. If such notes are part of the research being done at the
Pilot Site, a copy will be kept and marked "Confidential". Failure to return
such documents shall constitute a breach of the NDA between the Parties,
attached hereto as Appendix 4.

4.2 ABP and Pilot Site are each entitled to use research results obtained
during the course of the Pilot Study for its own research, product development
or teaching. However, any further assignment or other use of these findings
shall require the prior approval of the other party.

4.3 All improvements, enhancements, inventions and/or intellectual
property arising out of the performance of this Pilot Study, which are based
upon the use of the System or methods employed in the System are the exclusive
property of ABP and shall be assigned to it. Pilot Site shall make no claims to
intellectual property that may limit the use of the System.

5. DEVELOPMENT OF THE PROTCOL

5.1 Pilot Site agrees to use the System to conduct the Protocol in
accordance with the terms of the Protocol and the User's Manual provided by ABP
and Pilot Site shall consult with ABP and provide ABP with the full benefit of
Pilot Site's knowledge, experience and skill in the field. Pilot Site represents
that such Services shall be performed in a professional manner and according to
the highest standards.

5.2 Pilot Site will provide a written report on the status of the Protocol
to ABP on a regular basis as mutually agreed upon, and, in any event, at least
quarterly.

5.3 Pilot Site agrees not to use the System in any manner contrary to the
purposes of this Agreement nor to adapt, modify, disassemble or move the System
without ABP's prior knowledge and written consent. Such misuse will allow ABP to
immediately terminate this Agreement, with all consequences thereof to be borne
by Pilot Site exclusively. Should particular health protection requirements
require modifications of the System, Pilot Site shall immediately notify ABP in
writing and ABP may, in its sole discretion, modify the equipment or terminate
the Agreement.

4
<PAGE>

5.4 In addition to the Principal Investigators (John Persing, M.D. and
Yuan Liu, M.D.), the Pilot Site shall appoint one or two representatives who,
together with the Princit 6 0 pal Investigator, shall be responsible for making
all service and support calls to ABP and for completing Pilot Site's reporting
obligations under this section. The contact information for the designated site
representatives is set forth in Appendix 2.

5.5 Pilot Site shall not use the Software on equipment other than the
System (as defined in the Pilot Study Bailed Equipment Schedule, hereinafter the
"Designated Equipment") at the Designated Site (as defined in the Pilot Study
Bailed Equipment Schedule, hereinafter the "Designated Site") for the purposes
set forth in this Agreement. ABP shall have, at any time, upon reasonable
notice, the right to audit the Pilot Site to ensure that the use of the System
is in conformity with the terms and conditions set forth herein. If such audit
indicates Pilot Site to be in breach of this Agreement, at its sole discretion,
ABP may immediately terminate this Agreement.

5.6 Pilot Site hereby declares that it is not in default of any or all of
its obligations towards any of its creditors or pursuant to any of its
agreements entered into with any third party, and is not subject to any
proceedings of insolvency, bankruptcy, dissolution, merger, change of control,
trusteeship or any similar proceedings.

5.7 The Pilot Site represents and warrants that the Protocol shall be
formally approved by the appropriate Pilot Site Institutional Review Board(s).

6. SYSTEM SUPPORT

ABP shall appoint two (2) representatives who are responsible for support
of the System at the Pilot Site. Such representatives shall be identified in the
Pilot Site Schedule and they will be technically qualified, familiar with the
System and able to provide technical support to Pilot Site during normal
business hours of 9:00 a.m. to 5:00 p.m. (Eastern Time) Monday through Friday,
excluding holidays.

7. WARRANTIES AND INDEMNIFICATION

7.1 ABP represents and warrants to Pilot Site that ABP has the authority
to grant the License granted hereunder and that, to the best of the knowledge,
information and belief of ABP, the System does not infringe or violate any
copyright, trademark, patent or other proprietary right of any third party in
the United States.

5
<PAGE>

7.2 ABP shall, at its own expense, defend any suit brought against Pilot
Site in respect of a claim of infringement of any copyright, trademark, patent
or other proprietary right by any third party resulting from or as a consequence
of Pilot Site's use of the System pursuant to the License granted herein. ABP
agrees to pay the costs and damages finally awarded in such suit against Pilot
Site, provided that Pilot Site immediately notifies ABP in writing of such
infringement claim, cooperates with and uses its best efforts to assist ABP in
the defense of such suit and acknowledges ABP's exclusive right to settle or
defend such suit as ABP may see fit; provided that ABP shall not settle any
claims in which Pilot Site or Principal Investigator(s) are required to admit
liability without the prior written consent of Pilot Site. ABP shall not be
liable for any damages, costs, losses, expenses (including settlement awards and
attorney's fee) incurred by Pilot Site in defending any action or claim unless
such a defense or action has been authorized in writing by ABP.

7.3 If the third party infringement claim is based upon any unauthorized
modification of the System by Pilot Site, then Pilot Site shall indemnify and
hold ABP harmless against any judgment for damages which may be rendered against
ABP based upon the alleged infringement, together with the costs and incidental
damages incurred by ABP in exercising its rights and obligations under this
paragraph.

7.4 ABP warrants that the System as delivered is in full compliance with
applicable laws, standards, codes and regulations, is duly marked and labeled
and is suitable for use as under the terms of this Agreement. However, no claim
for damages will be allowed resulting from use of the System.

8. LIMITATION OF LIABILITY

THIS WARRANTY IS EXCLUSIVE AND IS IN LIEU OF ANY OTHER WARRANTIES,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, OR OTHERWISE, AND OF ANY OTHER OBLIGATIONS OR
LIABILITY ON ABP's PART. UNDER NO CIRCUMSTANCES WILL ABP BE LIABLE FOR ANY LOSS
OF DATA, INCIDENTIAL DAMAGES, EXPENSE, CONSEQUENTIAL DAMAGES, QUALITY,
PERFORMANCE, ACCURACY, BEHAVIOR, COMPATIBILITY, RELIABILITY OR ANY DELAY IN THE
PERFORMANCE OF ANY OF THE PILOT SITE'S OBLIGATIONS TOWARDS THIRD PARTIES ARISING
IN CONNECTION WITH USE OR INABILITY TO USE, THE SYSTEM.

9. CONFIDENTIAL INFORMATION

9.1 Protected Health Information - Notwithstanding any other provision of
this Agreement and subject to the terms of the Non-Disclosure Agreement attached
hereto as Appendix 4, if either party obtains any health or medical information
of any patient, the party will hold in confidence the identity of the subject
and the health/medical information and will comply with applicable laws and
policies regarding the confidentiality of such information.

 

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