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Title:

Agreement

Entities:

IDEXX Laboratories, Inc.; Johnson & Johnson

Date:

2004

Size:

Preview shows 21KB of 89KB total

Price:

$45

ID:

#283576

 

 

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EX-10.8 EUROPEAN SUPPLY AGREEMENT EX-10.8 4 b48970ilexv10w8.htm EX-10.8 EUROPEAN SUPPLY AGREEMENT
 

Exhibit 10.8

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

AGREEMENT

THIS AGREEMENT is made effective as of the 17th day of October, 2003, between IDEXX Europe B.V., a corporation organized under the law of The Netherlands whose principal place of business is at Koolhovenlaan 20, 1119 NE - Schiphol-Rijk, The Netherlands (?IDEXX?) and Ortho-Clinical Diagnostics, Inc., a New York corporation with offices at 100 Indigo Creek Drive, Rochester, New York, U.S.A. (?OCD?), and amends and restates the supply agreement effective as of January 1, 1999 between IDEXX and OCD (the ?Prior Europe Agreement?).

WHEREAS, OCD has been a supplier of analyzers for human applications and dry slides, and IDEXX has been a supplier of analyzers for animal applications; and

WHEREAS, OCD and IDEXX Operations, Inc. (?IDEXX US?) have entered into an agreement in the United States (the ?US Agreement?) to (a) combine certain of their respective skills and intellectual property and to invest significant capital to create a New Analyzer (as defined below) and related panel holder design for animal applications, which is expected to provide a superior analyzer offering to customers, expand the sales of OCD dry slides and IDEXX analyzers, and make IDEXX products more competitive and (b) ensure IDEXX US a continuing supply of Dry Slides necessary for its continued sale of analyzers, including the New Analyzer; and

WHEREAS, in the United States and in the Territory (as defined herein) different market conditions as well as regulatory differences prevail, for which reasons OCD and IDEXX desire to enter into a separate agreement for the supply of Dry Slides in the European market and the other regions in the Territory; and as is the case with the US Agreement, OCD and IDEXX desire to reflect herein their mutual investments and exchange of know-how in connection with the supply of Dry Slides as well as their desire to enter into new arrangements for the supply of diagnostic slides and analyzers for Europe and the other regions in the Territory, the terms and conditions of which are documented herein;

NOW THEREFORE, the parties hereby agree as follows:

 


 

1.   DEFINITIONS

In this Agreement the following expressions shall have the meaning set opposite them.

     
?Agreements?   This Agreement and the US Agreement.
     
?Analyzers?   The VETTEST Analyzer and the New Analzyer.
     
?Commencement Date?   October 17, 2003.
     
?Dry Slide?   A chemical composition, comprising a layered, coated dry film, specifically formulated to analyze for a body constituent, which composition is immediately hydrated by any undiluted bodily fluid, including without limitation a VITROS slide. For avoidance of doubt, the term ?Dry Slide? shall not include any assay based on immunomagnetic particle technology or any assay for which the analyte is DNA or RNA.
     
?Effective Rebate Rate?   For any year, the weighted average percentage reduction in the purchase price of any slides purchased in such year that IDEXX is entitled to receive pursuant to Section 7.03 hereunder. The calculation of the Effective Rebate Rate is illustrated in Schedule 7.
     
?Exclusivity Territory?   Austria, Belgium, France, Germany, Italy, Netherlands, Portugal, Spain, Switzerland and the United Kingdom.
     
?Existing Special [**] Slides?   VETTEST slides that have been [**], as of the date of this Agreement, pursuant to Section 4 of the Operations Agreement.
     
?IDEXX Parent?   IDEXX Laboratories, Inc., a Delaware, USA corporation, the parent company of IDEXX.
     
?IDEXX US?   IDEXX Operations, Inc., a Delaware, USA corporation.
     
?New Analyzer?   A new chemistry analyzer that uses OCD Dry Slides for veterinary applications, as contemplated by

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    Article 3 of the US Agreement, and any updates or modifications to such analyzer.
     
?New Chemistry Slides?   As defined in Section 5.06.
     
?New Slide/Panel Design?   A new slide format for VETTEST slides to be used in conjunction with the New Analyzer, as well as a panel holder for such slides, as contemplated by Article 3 of the US Agreement, and any updates or modifications to such design.
     
?New Slides?   VETTEST slides that are formatted and packaged in accordance with the New Slide/Panel Design, as contemplated by Article 3 of the US Agreement.
     
?New Special [**] Slides?   VETTEST slides that have been [**] pursuant to Section 7.04 of this Agreement.
     
?Operations Agreement?   The Operations Agreement effective as of January 1, 1999 among OCD, IDEXX Parent and IDEXX.
     
?PANELS/PROFILES?   Packages of VETTEST slides for VETTEST Analyzers consisting of two or more sets of slides of specified chemistries. The initial PANEL and the initial PROFILES shall consist of the slides set forth on Schedule 3 attached hereto, with any changes or additional PANELS/PROFILES to be mutually agreed upon by the parties as specified in Schedule 3.
     
?Prime Rate?   For any day in any calendar month, the prime rate of interest as published in the Wall Street Journal on the last business day of the immediately preceding month.
     
?Proportionate Share?   The percentage obtained by dividing (i) the number of VETTEST slides purchased by IDEXX in a given period, by (ii) the total number of VETTEST slides purchased by IDEXX and its affiliates during such period.
     
?Settlement Agreement?   The Amendment, Release and Settlement Agreement dated as of September 12, 2002 among OCD, IDEXX Parent and IDEXX.

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?Special [**] Slides?   Existing Special [**] Slides and New Special [**] Slides.
     
?Term?    As defined in Section 18.01.
     
?Territory?   The European Union, Africa, and the countries listed on Schedule 10 attached hereto.
     
?VETTEST Analyzer?   The analyzer currently marketed as the VETTEST VT 8008 analyzer and any updates or modifications to such analyzer.
     
?VETTEST slides?   Dry Slides currently manufactured by OCD, specially designed, bar coded, labeled, and/or packaged for one or more of the Analyzers in accordance with the terms of this Agreement or the US Agreement and supplied by OCD in accordance with the terms and conditions of this Agreement.
     
?VETTEST tips?   Metering tips sourced by OCD for use with the VETTEST Analyzer, specially packaged and supplied to IDEXX in accordance with the terms of this Agreement.
     
?VITROS slides?   The Dry Slides currently manufactured by OCD for use in any current VITROS analyzer, including without limitation the DT60.

All references to currency in this Agreement shall mean U.S. Dollars unless otherwise specifically indicated.

2.   EFFECTIVE DATE OF AGREEMENT

     
2.01   This Agreement shall become effective upon the Commencement Date. This Agreement shall apply solely within the Territory.

3.   NEW SLIDES AND THE NEW SLIDE/PANEL DESIGN

     
3.01   Notwithstanding any other provision of this Agreement, OCD?s obligations hereunder to supply, format or package New Slides hereunder shall be conditioned upon the successful development of the New Slides, the New Analyzer and the New Slide/Panel Design in accordance with Article 3 of the US Agreement.

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  3.02   If IDEXX US elects under Section 3.08 of the US Agreement to perform the formatting and packaging of the New Slides independently of OCD, then (1) in lieu of New Slides, OCD shall supply IDEXX with VITROS slides in the format currently manufactured for the VITROS mainframe analyzers and/or the VETTEST Analyzer (i.e., VITROS slides packaged in 50-count cartridges, before further formatting and packaging for VETTEST Analyzer requirements), as applicable for New Slides, for the Term as provided in this Agreement, and all references in this Agreement to New Slides or to VETTEST slides, to the extent referring to OCD?s obligation to supply New Slides, shall mean such VITROS slides packaged in 50-count cartridges and (2) solely with respect to New Slides, the prices for Tiers 2 and 3 in the table set forth in Section 7.02 shall be reduced by $[**] per New Slide.

4.   AGREEMENT TO SUPPLY


 
  4.01

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