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Document Preview Royalty Agreement [Amendment No. 1] |
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Title: |
Royalty Agreement [Amendment No. 1] |
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Entities: |
Curative Health Services, Inc.; Cytomedix, Inc.; DePuy AeroMed, Inc. |
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Date: |
2001 |
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Size: |
Preview shows 5KB of 14KB total |
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Price: |
$35 |
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ID: |
#298753 |
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FIRST AMENDMENT TO THE
ROYALTY AGREEMENT
This First Amendment, dated as of April 20, 2001 (this
"AMENDMENT"), to the Royalty Agreement, dated as of December 26, 2000 (the
"ROYALTY AGREEMENT") by and between Cytomedix, Inc., a Delaware corporation
("CYTOMEDIX"), and Curative Health Services, Inc., a Minnesota corporation
("CURATIVE"). Terms used herein but not defined shall have the meanings
ascribed in the Royalty Agreement.
RECITALS
WHEREAS, the parties entered into the Royalty Agreement
pursuant to the terms and conditions of an Amended and Restated Asset
Purchase Agreement, effective as of October 12, 2000 (the "ASSET PURCHASE
AGREEMENT"), pursuant to which Cytomedix purchased certain assets of Curative
and its affiliates as set forth therein, including the Patents;
WHEREAS, Cytomedix entered into a license agreement,
effective March 19, 2001, between Cytomedix and DePuy AeroMed, Inc. ("DEPUY")
(the "LICENSE AGREEMENT"), and under the Royalty Agreement, Cytomedix is
required to pay Curative royalties on the Net Sales Amount of the Future
Products sold thereunder; and
WHEREAS, Cytomedix and Curative are parties to a Consent,
Payoff, Conversion and Exchange Agreement dated the date hereof, under which
Cytomedix and Curative have agreed to amend the Royalty Agreement as set
forth in this Amendment as partial consideration for the transactions
contemplated by the Consent, Payoff, Conversion and Exchange Agreement.
NOW, THEREFORE, for and in consideration of the premises
and the mutual covenants contained herein, and for other good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are
hereby acknowledged, the parties do hereby agree as follows:
1. The definition of "FUTURE PRODUCTS" in Article I
of the Royalty Agreement shall be replaced, to read in its entirety as
follows:
"FUTURE PRODUCTS" - ANY PRODUCTS WHICH EMBODY ANY OF THE
PATENTS OR ARE COVERED BY ANY CLAIM OF THE PATENTS.
2. Section 2.2 of the Royalty Agreement shall be
replaced, to read in its entirety as follows:
"SECTION 2.2 PAYMENT OF ROYALTY.
(a) EXCEPT AS SET FORTH IN PARAGRAPH (b) BELOW,
CYTOMEDIX SHALL PAY THE ROYALTY QUARTERLY. WITHIN FORTY-FIVE (45) DAYS AFTER
THE END OF EACH CALENDAR QUARTER, CYTOMEDIX SHALL (i) PAY CURATIVE THE AMOUNT
OF THE ROYALTY OWED BY CYTOMEDIX FOR SUCH CALENDAR QUARTER, AND (ii) PROVIDE
CURATIVE WITH A WRITTEN REPORT SETTING FORTH THE NET SALES AMOUNT WITH
RESPECT TO PROCUREN AND THE FUTURE PRODUCTS FOR THE APPLICABLE QUARTER, AND
THE COMPUTATION OF THE PROCUREN ROYALTY AND THE FUTURE PRODUCTS ROYALTY WITH
RESPECT THERETO FOR THE APPLICABLE QUARTER. THE ROYALTY SHALL BE PAYABLE IN
CURRENCY OF THE UNITED STATES OF AMERICA REGARDLESS OF THE COUNTRY WHERE
EARNED AND SHALL BE PAID OR DEPOSITED AS DESIGNATED IN WRITING BY CURATIVE.
THE EXCHANGE RATE USED TO CALCULATE THE ROYALTY SHALL BE THE SAME RATE
SPECIFIED UNDER FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT 52, OR ITS
SUCCESSOR, USED TO TRANSLATE THE FINANCIAL RESULTS OF CYTOMEDIX OR ITS
AFFILIATES FOR PUBLIC REPORTING. IF THE ROYALTY FOR THE
{PAGE}
PREVIOUS CALENDAR QUARTER REMAINS UNPAID WITHIN FORTY-FIVE (45) DAYS AFTER
THE END OF SUCH CALENDAR QUARTER, INTEREST SHALL ACCRUE ON SUCH UNPAID AMOUNT
AT THE LOWER OF (i) FIFTEEN PERCENT (15%) PER ANNUM, OR (ii) THE HIGHEST RATE
PERMITTED BY LAW, UNTIL PAID.
(b) EACH OF CURATIVE AND CYTOMEDIX SHALL, AND
CYTOMEDIX SHALL USE ITS BEST EFFORTS TO CAUSE DEPUY TO, ENTER INTO AN
AGREEMENT SUBSTANTIALLY IN THE FORM ATTACHED HERETO AS EXHIBIT A, PURSUANT TO
WHICH APPROXIMATELY 92.3 PERCENT (92.3%) OF THE ROYALTIES PAYABLE TO
CYTOMEDIX UNDER THE LICENSE AGREEMENT SHALL BE PAID DIRECTLY TO CURATIVE AS
FOLLOWS:
(i) SIX PERCENT (6%) OF ANY AND ALL NET SALES MADE BY
SUBLICENSORS OF PRODUCTS (AS DEFINED IN THE LICENSE AGREEMENT) SHALL BE MADE
DIRECTLY TO CURATIVE, PAYABLE ON A QUARTERLY BASIS BY FEDERAL FUNDS WIRE, TO
AN ACCOUNT SPECIFIED BY CURATIVE; AND
(ii) ONE-HALF PERCENT (0.5%) OF ANY AND ALL NET SALES
MADE BY SUBLICENSORS OF PRODUCTS (AS DEFINED IN THE LICENSE AGREEMENT)SHALL
BE MADE TO CYTOMEDIX.
(c) CYTOMEDIX SHALL, AND USE ITS BEST EFFORTS TO CAUSE
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