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Title: |
Settlement Agreement and Release |
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Date: |
2002 |
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Preview shows 9KB of 52KB total |
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$35 |
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ID: |
#329025 |
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SETTLEMENT AGREEMENT AND RELEASE
THIS SETTLEMENT AGREEMENT AND RELEASE (this "Settlement
Agreement") is made this August 1, 2002, by and among VIROPHARMA INCORPORATED, a
Delaware corporation ("ViroPharma"), VCO INCORPORATED, a Delaware corporation
and wholly-owned subsidiary of ViroPharma ("VCO"), and AVENTIS PHARMACEUTICALS,
INC., a Delaware corporation ("Aventis"). For convenience, each of ViroPharma,
VCO and Aventis may be referred to in this Settlement Agreement as a "Party" and
collectively as "Parties."
Background
ViroPharma and Aventis are parties to that certain Copromotion
and Codevelopment Agreement, effective as of September 9, 2001, as amended (the
"Copromotion Agreement"). ViroPharma and Aventis are also parties to that
certain Stock Purchase Agreement, dated as of September 9, 2001 (the "Stock
Purchase Agreement"). Pursuant to that certain Sublicense and Subcontract
Agreement between ViroPharma and VCO, dated December 31, 2001 (the "VCO
Subcontract Agreement"), ViroPharma subcontracted and sublicensed to VCO certain
of ViroPharma's obligations and rights under the Copromotion Agreement.
As a result of developments that have occurred since the
Effective Date of the Copromotion Agreement, the Parties have determined in good
faith to terminate such Copromotion Agreement and the Stock Purchase Agreement
without the payment of a termination fee.
In consideration of the mutual covenants and releases contained
in this Settlement Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound, hereby agree as follows:
1. Certain Capitalized Terms. Capitalized terms used in this
Settlement Agreement shall have the respective meanings ascribed to such terms
in the Copromotion Agreement and in this Settlement Agreement.
2. Settlement and Termination of the Copromotion Agreement and
Stock Purchase Agreement. ViroPharma and Aventis hereby settle and resolve all
claims that they may have against each other under the Copromotion Agreement and
terminate each of the Copromotion Agreement and Stock Purchase Agreement in all
respects (including, without limitation, Sections 13.10 and 13.11 of the
Copromotion Agreement) effective as of the date of this Settlement Agreement,
and no further amounts shall be due or payable by Aventis or ViroPharma to the
other under or in connection with either or both of the Copromotion Agreement or
the Stock Purchase Agreement and neither Aventis nor ViroPharma shall have any
continuing or further obligation with respect to any representation, warranty,
obligation, covenant or agreement under either or both of the Copromotion
Agreement or the Stock Purchase Agreement except in each case as otherwise
provided in (a) Section 1 of this Settlement Agreement with respect to certain
capitalized terms, (b) Section 5 of this Settlement Agreement, and (c) Section
10(a) of this Settlement Agreement.
{PAGE}
3. Mutual Releases.
(a) By ViroPharma. Subject to Section 3(c) of this
Settlement Agreement, ViroPharma, for itself and anyone claiming by, through or
under ViroPharma, including, without limitation, VCO, hereby knowingly and
voluntarily releases and forever discharges Aventis and its Affiliates, and
their past and present shareholders, partners, directors, officers, employees,
agents and attorneys of any of the foregoing, and the predecessors, successors,
assigns, heirs and personal representatives of any of the foregoing, and all
insurers of any of the foregoing (collectively with Aventis, the "Aventis
Parties") of and from any and all claims, duties, obligations, liabilities,
debts, demands, expenses, costs, actions, and causes of action, whether at law
or in equity, known or unknown, accrued or unaccrued, matured or unmatured,
individually or derivatively, that ViroPharma or anyone claiming by, through or
under ViroPharma had, may have, or now have under, or that might subsequently
accrue or arise out of, or concern, either or both of the Copromotion Agreement
and the Stock Purchase Agreement.
(b) By Aventis. Subject to Section 3(c) of this Settlement
Agreement, Aventis, for itself and anyone claiming by, through or under Aventis,
hereby knowingly and voluntarily releases and forever discharges ViroPharma and
its Affiliates, and their past and present shareholders, partners, directors,
officers, employees, agents and attorneys of any of the foregoing, and the
predecessors, successors, assigns, heirs and personal representatives of any of
the foregoing, and all insurers of any of the foregoing (collectively with
ViroPharma, the "ViroPharma Parties") of and from any and all claims, duties,
obligations, liabilities, debts, demands, expenses, costs, actions, and causes
of action, whether at law or in equity, known or unknown, accrued or unaccrued,
matured or unmatured, individually or derivatively, that Aventis or anyone
claiming by, through or under Aventis had, may have, or now have under, or that
might subsequently accrue or arise out of, or concern, either or both of the
Copromotion Agreement and the Stock Purchase Agreement.
(c) Exceptions. Nothing contained in this Settlement
Agreement shall settle, release, discharge or otherwise affect any of the
Parties' respective representations, warranties, obligations, agreements and
covenants under this Settlement Agreement.
4. No Admission. The entry into this Settlement Agreement by
ViroPharma and VCO, on the one hand, and Aventis, on the other hand, does not
constitute an admission by any of them as to the merit or lack of merit of any
claims brought or that could have been brought against the other or any defenses
asserted or that could have been asserted with respect thereto, nor does it
constitute an admission by any of the Parties for any other purpose. Rather,
each of the Parties is entering into this Settlement Agreement without making
any admissions, and is doing so solely to avoid the expense that would be
involved in proceeding any further with their dispute regarding the Copromotion
Agreement.
-2-
{PAGE}
5. Payment for ViroPharma Commercialization and Development
Expenses; Details and Calls; Accelerated Refund; and Stock Purchase.
(a) Payment for Commercialization and Development Expenses.
Notwithstanding anything to the contrary in this Settlement Agreement, Sections
8.5.1, 8.5.2, 8.5.3, 8.5.4, 8.6, 8.8, 8.9 and 8.10 of the Copromotion Agreement
shall survive the termination of the Copromotion Agreement until the date that
the Parties make final payment pursuant to Section 8.5.4 of the Copromotion
Agreement with respect to the period ending on the date of this Settlement
Agreement, and Section 8.11 shall survive until the third anniversary of this
Settlement Agreement.
(b) Detail of Aventis Product. With respect to the
continued Detailing of Aventis Products after the date of this Settlement
Agreement the following shall apply:
(i) Continued Detailing of Aventis Products.
Article 9 of the Copromotion Agreement shall survive the termination of the
Copromotion Agreement until August 31, 2002, and, for the sake of clarity,
ViroPharma shall continue to have the right and license to perform Details and
Calls with respect to the Aventis Products in accordance with the terms and
subject to the conditions set forth in Article 9 of the Copromotion Agreement
and to perform all other activities described therein (and VCO may continue to
act as ViroPharma's sublicensee and contractor under the VCO Subcontract
Agreement with respect thereto) until August 31, 2002.
(ii) Payment for Details and Calls Through August 31,
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