Document:

Exhibit 10.15

 

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THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS
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PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

DYE SUPPLY AGREEMENT

This Agreement is entered into and effective this 1st
day of January, 2005 (the “Effective Date”) by and between Corning
Incorporated having an address of Corning, NY 14831 (“Corning”) and
Insight Equity A.P.X, LP dba Vision-Ease Lens having an address of 7000 Sunwood
Drive NW, Ramsey, Minnesota 55303 (“VEL”).

RECITALS

WHEREAS, Corning has developed a proprietary
photochromic dye that is useful for multiple applications, including consumer
eyeware; and

WHEREAS, VEL desires to use Corning’s proprietary
photochromic dye to manufacture photochromic polycarbonate consumer eyeglass
lenses using VEL’s proprietary manufacturing process; and

WHEREAS, Corning is willing to provide the
photochromic dye to VEL on an exclusive basis for application in the field of
photochromic polycarbonate consumer eyeglass lenses subject to a reserved right
to promote, market and sell its photochromic monomers to manufacturers of cast
consumer eyeglass lenses; and

NOW, THEREFORE, in consideration of the premises and
the mutual promises set forth below, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged by the
parties.  VEL and Corning, intending to
be legally bound, agree as follows:

1.                                       SCOPE OF AGREEMENT

1.1                                 Entire Agreement; Certain Definitions.  This Agreement embodies the entire agreement
between Corning and VEL with regard to its subject matter and it supercedes all
prior and contemporaneous negotiations, agreements, discussions, commitments,
understandings, and promises made with respect thereto.  Capitalized terms used throughout this
Agreement shall have the meaning ascribed to such terms immediately prior to
their first use or if not so defined in the Section noted immediately after its
first use.

1.2                                 Purchase
and Sale Commitment.

1.2.1                        Mutual
Commitment.  Corning hereby commits
to sell to VEL and VEL commits to purchase from Corning, all of VEL’s
requirements for photochromic dyes, including the photochromic dye set forth in
the specification attached as Exhibit A (the dye set forth in Exhibit A
hereinafter being referred to as “Dye”) in the manufacture by or for VEL
of gray photochromic polycarbonate consumer

 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND
NOTED AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

prescription eyeglass
lenses (the “Field”).  For purposes of
this Agreement, the term “Product(s)” shall mean lenses manufactured by or for
VEL in the Field which contain Dye from Corning.  Corning’s commitment to sell the Dye to VEL
is contingent, in part, on the provision of quarterly forecasts by VEL as
anticipated in Section 2.1 below. 
Corning shall reserve capacity to deliver, each quarter.  125% of the quantity of Dye forecasted as
being required by VEL during such quarter based upon VEL’s forecast provided
immediately prior to or at the commencement of such calendar quarter.  To the extent VEL’s actual requirements in a
quarter exceed 125% of its forecasted requirements, Corning will use
commercially reasonable efforts to provide the additional quantities required
by VEL, provided Corning shall neither suffer nor incur any liability or
obligation to VEL if, despite the use of commercially reasonable efforts,
Corning is unable to meet VEL’s unforecasted excess demand.

1.2.2                        Purchase
Price.  The purchase price payable by
VEL for the Dye is set forth in Exhibit B. Increases to such pricing
schedule shall be considered annually but only upon demonstration by Corning to
VEL’s reasonable satisfaction (1) that Corning has or can be expected to incur
increases in its direct costs associated with the Dye, and/or (2) increases in
taxes, tariffs, customs duties or other similar governmental charges.  Decreases shall be allowed annually upon
demonstration that VEL’s purchases of Dye during the immediately preceding
twelve months exceeded 125kg.  Decreases
shall also occur in the event of a decrease in the costs generally described in
subclause (1) and/or (2) immediately above.

1.2.3                        Minimum
Annual Purchase Commitment.  Each
year for so long as this Agreement remains effective, VEL shall purchase from
Corning at least the minimum annual quantity of Dye referenced in Exhibit B
(the “Minimum”).  In the event the actual
quantity of Dye that VEL purchases is less than the Minimum, VEL may make a
lump sum payment to Corning in an amount equal to the monetary difference
between the actual quantity of Dye purchased in such year and the Minimum.  Such payment is to be made within sixty (60)
calendar days of the completion of the relevant calendar year.  In the event VEL does not make such monetary
payment within sixty (60) calendar days of the completion of the relevant
calendar year, the exclusive sale commitment in the Field made by Corning in
Section 1.3 shall expire and accordingly Corning may sell all Dye to any
party for any purpose.  VEL may,
nonetheless, continue to purchase Dye from Corning for the remaining term of
this Agreement.

1.2.4                        Default
in Covenant to Purchase Requirements for Dye from Corning.  Without prejudice to any other right or
remedy available to Corning, in the event VEL fails to purchase one hundred
percent (100%) of its requirements for photochromic dyes in the Field from Corning
as anticipated herein (except on account of Corning being unable to meet VEL’s
requirements for photochromic dyes under 

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PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND
NOTED AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Section 4.5, including on
account of a force majeure event that may interrupt Corning’s supply of
Dye).  Corning may sell Dye to any party
for any purpose.

1.3                                 Exclusivity.  Throughout the term of this Agreement, and in
exchange for the 100% purchase commitment made by VEL for its requirements of
photochromic dyes in the field, Corning shall refrain from selling photochromic
dyes in the Field to any third party that is an active manufacturer in the
Field.  For the avoidance of doubt,
nothing herein shall prevent Corning from selling to third parties a
photochromic formulation which incorporates the Dye for use in the manufacture
of cast photochromic lenses, including consumer eyeglass lenses.

2.                                       FORECASTS

2.1                                 Forecasts.  VEL
acknowledges that Corning’s ability to satisfy VEL’s requirements for Dye in a
timely manner is largely dependent on VEL providing Corning with a reasonably
accurate forecast of its requirements for Dye in a format mutually agreeable to
both parties.  Accordingly, upon
execution of this Agreement, the parties shall develop an annual forecast of
VEL’s anticipated requirements for Dye, a first draft of which shall be
provided by VEL at the time of execution of this Agreement.  This forecast shall be updated on a quarterly
basis by VEL.  The forecast shall detail
the volume of Dye that VEL expects to purchase during the current calendar
year.

3.                                       TERMS OF PAYMENT

3.1                                 Invoices.  Corning shall
submit an invoice to VEL for all Dye delivered to it in response to purchase
orders received.  Each invoice shall
include the relevant purchase order number, the VEL item number, the
manufacturer lot number, type, and quantity of Dye purchased.

3.2                                 Payment Terms. 
Payment terms are as set forth in Exhibit B.  The obligation to pay outstanding invoices
and invoices issued after the expiration or termination of this Agreement for
Dye delivered prior to the expiration or termination of this Agreement shall
survive the expiration or termination of this Agreement for any reason
whatsoever.

4.                                       TERMS OF DELIVERY; INTERRUPTION IN MANUFACTURING

4.1                                 Delivery Terms. 
Delivery terms associated with Dye purchased by VEL shall be CIP Ramsey,
Minnesota U.S.A. (Incoterms 2000 version).

4.2                                 Title and Risk of Loss. 
Title and risk of loss of Dye shall pass to VEL per delivery terms
stated in 4.1.

4.3                                 Leadtime.  Corning
shall deliver Dye to VEL, consistent with its capacity reservation and
inventory reserves as provided in Sections 1.2.1 and 4.4, respectively, no
later than

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NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED
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MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

the indicated receipt date set forth in VEL’s purchase order.  Such receipt date shall be at least thirty
(30) days after the date of receipt of the purchase order by Corning.

4.4                                 Inventory Reserve.  On
any given date after January 2006, Corning shall have (or cause its supplier to
have) a minimum inventory reserve of Dye equal to the aggregate total amounts
of Dye forecast under Section 2.1 by VEL for the three consecutive calendar
months extending beyond said any given date (the “Inventory Reserve”).  By way of example, the Inventory Reserve for
September 1, shall equal the total amount of Dye forecasted by VEL for the
months of October, November and December in the forecast provided to Corning by
VEL on June 1.  Prior to the expiration
of this Agreement, the parties will work in good faith to reduce the inventory
reserve so that upon the expiration of this Agreement, no Dye will remain in
Corning’s or its supplier’s inventory for VEL. 
In any event, upon the expiration or termination of this Agreement for
any reason whatsoever, Corning shall have the right to ship and deliver, and
VEL shall accept and pay for, all or any portion of the Dye in Corning’s or its
supplier’s inventory that were reserved for VEL up to a maximum of the required
three month reserved amount referenced in this section.  This obligation shall survive the expiration
or termination of this Agreement for any reason whatsoever.

4.5                              Corning’s Inability to Supply Dye.  If Corning is unable to fulfill a purchase
order from VEL, for any reason, including reasons under Paragraph 14.1 (Force
Majeure) but excluding reasons where VEL’s actual requirements exceed its
forecasted requirements by greater than 125%. 
Corning shall notify VEL within thirty (30) days of the indicated
receipt date on the purchase order as set by the terms of Paragraph 4.3.  Corning will then have thirty (30) days to
work through a recovery action plan to restore supply.  In the event of a continued failure to supply
after a total of sixty (60) days after the indicated receipt date on the
purchase order, and if VEL elects not to terminate this Agreement pursuant to
Section 15, VEL shall have the right, subject to the approval of Corning, to
itself supply or to appoint one third-party supplier to supply Dye to VEL, such
approval not to be unreasonably withheld. 
Upon approval by Corning, Corning shall grant a non exclusive license
under all applicable Corning intellectual property, including patent rights and
know-how that are either owned or sublicensable by Corning to VEL or said third
party supplier.  Such non exclusive
license shall be for the sole purpose of manufacturing Dye that shall be used
by VEL exclusively to manufacture Products. 
VEL shall pay Corning a royalty of 5% of the purchase price paid by VEL
to the third party for the Dye manufactured and supplied to VEL, or if VEL
produces the Dye, VEL shall pay Corning a royalty of 5% of the purchase price
that VEL would otherwise have paid to Corning if Corning had supplied the Dye
to VEL hereunder.  Products sold by VEL
under this non-exclusive license shall also be subject to the royalty
provisions of Section 7.  The non
exclusive license shall be limited to the period during which the supply of the
Dye shall be made by VEL or by a third party supplier appointed by VEL under
this Section 4.5.  Upon demonstration by
Corning to VEL of its ability to restart its supply of Dye (through
qualification of three separate dye lots) to VEL in conformance with the terms
of this Agreement, the aforesaid license shall be phased out by decreasing the
volume of

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NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED
AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Dye provided by VEL or the third supplier by fifty percent (50%) in the
first year Corning restarts its supply and by one hundred percent (100%) in the
second year Corning restarts its supply, after which years neither VEL nor a
third-party supplier shall have any further rights under the patents to
manufacture Dye.

5.                                       LIMITED WARRANTY

5.1                               Warranty.  Corning
warrants that all Dye delivered by Corning to VEL under the terms of this
Agreement shall conform to the specifications set forth in Exhibit A.  ALL OTHER WARRANTIES, WHETHER EXPRESS OR
IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR PURPOSE, ARE HEREBY EXPRESSLY DISCLAIMED.

5.2                               Limitations.  This
warranty does not extend to Dye that has been: 
(a) subject to misuse, neglect, accident or abuse by VEL;
(b) improperly processed, stored or maintained by persons other than
Corning or Corning’s agents or Corning’s contractors, including shippers;
(c) used in a manner not in accordance with Corning’s specifications and
guidelines (attached as Exhibit A); (d) delivered to VEL more than
ninety (90) days prior to the discovery of any nonconformance;
(e) discovered within ninety (90) days of delivery to VEL not to conform
but which has not been brought to the attention of Corning with written notice
within fifteen (15) days of discovering such nonconformance.

5.3                               Remedy-Non Conforming Dyes. 
If VEL provides written notice to Corning that Dye provided to VEL to
which the Warranty of Section 5.1 extends does not conform to the
specifications set forth in Exhibit A, Corning shall be obligated to
fulfill any replacement purchase order from VEL within five (5) days of the
date of the replacement purchase order. 
Ten (10) days after receipt of the written notice from VEL, Corning
shall give notice to VEL as to whether Corning agrees or disagrees that the Dye
is nonconforming.  In the event Corning
disagrees that the Dye is nonconforming, Corning and VEL shall jointly submit
the Dye in question to an independent laboratory for evaluation.  In the event Corning agrees that the Dye in
question does not conform or in the event the independent laboratory concludes
that the Dye does not conform, then (1) Corning shall credit VEL for the
amount charged to VEL for the non-conforming Dye and Corning shall bear all
freight costs for return of the Dye and (2) Corning shall pay to VEL one
half of the reasonable direct costs incurred by VEL in the production of
Products which VEL shall scrap due to the Dye not conforming to the
requirements of Section 5.1; for purposes of the present clause, such one half
of the reasonable direct costs shall in no event-exceed the-equivalent 1.5
times the US dollar amount of one month of Dye purchase, based on VEL’s average
monthly purchase for the three immediately previous months.

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PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED
AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

5.4                                 Sole Remedy.  This
shall constitute VEL’s only remedy for non conforming Dye.  Corning shall not be liable to VEL for any
direct, indirect, special, consequential, or incidental damages.

5.5                                 Non Conforming Product. 
In the event VEL determines that (1) photochromic properties of
Products do not conform to the specifications of Exhibit C; and,
(2) the Dye associated with the nonconforming Products conforms to the
specifications of Exhibit A; and (3) there are no known defects in
VEL’s manufacturing process, then VEL shall provide written notice within ten
(10) days of making such determination to Corning.  The parties shall then agree to exert
commercially reasonable efforts to meet in person within thirty (30) days of
such written notice in order to jointly establish a corrective action plan and
schedule therefor.

6.                                       PATENT INDEMNIFICATION

6.1                                 Corning Patent Indemnification.  In the event any claim is asserted against
VEL alleging that the Dye provided by Corning infringes a patent right of a
third party, Corning shall, at its own expense, settle or defend such claim on
behalf of VEL or any suit or proceeding arising therefrom and pay all damages
and costs that may be awarded therein against VEL, VEL shall promptly notify
Corning of its receipt or notice of any such claim or assertion.  VEL further agrees to provide Corning
information and assistance in defending such a claim and hereby grants Corning
exclusive authority to defend or settle such claim on behalf of VEL, except
that any such settlement shall be subject to approval of VEL, which approval
shall not be unreasonably withheld. 
Without limiting the foregoing in any way, VEL shall have the right to
retain its own attorneys, solely at VEL’s cost, to assist Corning in the
defense or settlement of any such claim. 
Finally, if a final judgment of patent infringement is entered in a
United States court enjoining Corning from further production of Dye, the
requirements commitment made by VEL in the Field in Section 1.2.1 above shall
expire and VEL shall thereafter have the right to obtain photochromic dyes for
use in the Field from any third party. 
This indemnification does not extend to any claim asserted against VEL
other than these mentioned in this Section 6.1.

6.2                                 VEL Patent Indemnification.  In the event any claim is asserted against
Corning alleging the use of a Dye as a component in a Product, or alleging the
use of a Dye in the process used by VEL to manufacture a Product, infringes a
patent right of a third party.  VEL
shall, at its own expense, settle or defend such claim on behalf of Corning or
any suit or proceeding arising therefrom and pay all damages and costs that may
be awarded therein against Corning. 
Corning shall promptly notify VEL of its receipt of any such claim or
assertion.  Corning further agrees to
provide VEL information and assistance in defending such a claim and hereby
grants VEL exclusive authority to defend or settle such claim on behalf of Corning,
except that any such settlement shall be subject to approval of Corning, which
approval shall not be unreasonably withheld. 
Without limiting the foregoing in any way, Corning shall have the right
to retain its own attorneys,

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NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED
AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

solely at Corning’s cost, to assist VEL in the defense or settlement of
any such claim.  Finally, if a final
judgment of patent infringement is entered in a United States court enjoining
VEL from further production of Products, the exclusive commitment made by
Corning in the Field in Section 1.3 above shall expire and Corning may thereafter
sell Dyes to any party for any purpose, including in the Field.  This indemnification does not extend to any
claim asserted against Corning other than those mentioned in this Section 6.2.

7.                                     ROYALTY

7.1                               Royalties Payable to Corning.  In
consideration for the exclusivity granted by Corning under Section 1.3. the
following royalty payments shall be due, owing and payable by VEL to Corning:

7.1.1                        Royalties
Payable.  For each Product which VEL
sells, leases or “Otherwise Transfers” (as defined in Section 7.1.2 below) to a
third party, VEL shall pay to Corning [*REDACTED*] percent
([*REDACTED*]%)of the Actual Net Sales Price (as defined below).  In the event (1) VEL exercises its
rights to obtain Dye from a third party supplier under Section 4.5 due to Corning’s
inability to Supply Dye and (2) the price to purchase the Dye from said
third party supplier exceeds the prices set forth in Exhibit B, then VEL
shall have the right to subtract this price differential from the [*REDACTED*] percent ([*REDACTED*]%)
royalty otherwise payable to Corning up to and including a price differential
that amounts to the entire [*REDACTED*] percent
([*REDACTED*]%) royalty relating to the
Products manufactured using the third party supplier’s Dyes.  In the event that the dye is purchased from
the third party supplier at a lower price than the prices set forth in Exhibit
B, then VEL shall add the difference to the royalty payments relating to
the Products manufactured using the third party supplier’s Dyes.

7.1.2                        Definition
of “Otherwise Transfers”.  For
purposes of this Agreement, the term “Otherwise Transfers” shall mean Products
put into use by VEL for any purpose other than routine testing.  In this regard, any Product provided
free-of-charge by VEL to a customer in a “buy-one-get-one-free” offer or in a
direct dispenser incentive shall be treated as sold or Otherwise Transferred at
the sales price otherwise associated with the Product in said offer or
incentive and shall therefore be subject to the royalty payment provided for by
Section 7.1.1.

7.1.3                        Definition
of Actual Net Sales Price.  For
purposes of this Agreement, the term “Actual Net Sales Price” shall mean the
sales price actually received by VEL for the sale of Product less tax, freight,
customs duties, insurance, shipping, handling, returns and credits/debits for
customer pricing programs.

7.1.4                        Quarterly
Statements.  Within, thirty (30) days
of the close of each calendar quarter, VEL shall provide to Corning a statement
showing the sales of Products

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PLEASE NOTE THAT CERTAIN MATERIAL HAS BEEN
OMITTED FROM THIS
AGREEMENT AND NOTED AS “*REDACTED*”
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

during such
quarter and a calculation of the corresponding royalty obligation owed
hereunder.

7.1.5                        Royalty
Payments.  Within, sixty (60) days
after the close of each calendar quarter, VEL shall pay all royalties due
hereunder by wire transfer to an account to be designated by Corning.  All such royalties shall be paid in U.S.
dollars.  To the extent that VEL’s
payment of royalties is based upon transactions that it invoiced in a currency
other than U.S. dollars, such royalty payment shall be computed in U.S. dollars
with respect to each non-U.S. currency in which there are transactions in the
calendar quarter.  The conversion rate
for each such non-U.S. currency shall be made at the rate published in the Wall
Street Journal as of the business day next following the close of the calendar
quarter for which the payment is being made, and each such rate shall be
identified in the statement required by Section 7.1.4 above.

7.1.6                        Books
& Records; Audit Rights.  VEL
shall keep (or cause to keep) and maintain complete and accurate books and
records of its transactions involving the Products so that Corning, or an
independent certified public accountant selected mutually by the parties, may
review and audit the royalty payments made by VEL hereunder.  Upon providing forty-eight (48) hours written
notice to VEL, Corning may instruct the accountant to inspect VEL’s relevant
books and records at reasonable times during business hours within two (2)
years after the end of the period to which such records relate, for the purpose
of verifying transactions involving Products and any remittance of royalty
payments due thereon.  The expenses for
such accountant shall be borne by Corning and the accountant shall disclose to
Corning only such information as relates to the accuracy of the books and
records kept and payments made.  If,
however, such audit reveals an underpayment that exceeds $25K in which case VEL
shall be required to reimburse Corning for all expenses associated with such
audit.

7.1.7                        Taxes
on Royalties.  VEL shall pay any tax
(and related interest and penalties), however designated, imposed as a result
of the existence or operation of this Agreement including any tax VEL is
required to withhold or deduct from the royalty payments to Corning, except any
such tax constituting an income tax imposed upon Corning by any governmental
entity within the United States proper.

8.                                       MANUFACTURING

8.1                                 Manufacturing Standards for Dyes.  Corning shall use, and shall cause any of its
suppliers to use, commercially reasonable efforts to comply with all applicable
regulations with respect to manufacture of Dye, including but not limited to,
regulatory requirements including TSCA and MSDS requirements.  Upon VEL’s request, Corning shall provide to
VEL the results of the most recent quality audits conducted by Corning

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MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

in connection with the Dye.  VEL
shall also have the right to perform supplier quality audits at any of the
manufacturing locations.  In the case of
third party toll manufacturers, Corning will exert best efforts to facilitate
that audit by VEL.  If that proves
impossible, Corning will perform the audit themselves according to VEL’s
requirements.

9.                                       MODIFICATION TO PRODUCT

9.1                                 Advance Notice and Approval.  Corning shall provide VEL sixty
(60) days notice of any substantive changes intended by Corning to the
specifications or the process for manufacturing the Dye, including but not
limited to, any change in the supplier used in the manufacture of the Dyes and
any change in the location of the manufacture of the Dye.  At the request of VEL, such notice shall
include the provision to VEL by Corning, at Corning’s expense, of reasonable
quantities of Dye having such intended change for evaluation and testing by
VEL, the cost of such quantities being borne by VEL in the event such
quantities are determined to qualify to the specifications of Exhibit A.  Such intended changes shall only be
implemented by Corning upon approval by VEL, which approval shall not be
unreasonably withheld.  Unless VEL
otherwise agrees, changes in the specifications shall not apply to any purchase
orders from VEL received by Corning prior to the date the change in the
specifications becomes effective.  In the
event that Corning does not satisfy its notice obligations under this section
9.1.  Corning shall pay to VEL up to an
equivalent of one-fourth (1/4) of
the ID months of preceding dye purchases for: 
(1) the cost of Product inventory not meeting the photochromic
properties due to the substantive changes as described in the above paragraph
and (2) for all Products returned to VEL by VEL’s customers due to
Products not meeting the photochromic properties for a period of twelve months
after the change has been implemented by Corning, calculated at the average
Product selling price.

10.                                 CONFIDENTIAL INFORMATION

10.1                           The
parties acknowledge that they have each signed a Confidentiality Agreement
dated March 26, 2004, a copy of which is attached hereto and incorporated
herein as Exhibit D.  The
provisions of such agreement shall apply mutatis mutandis to any proprietary or
confidential information received under this Agreement.  The Confidentiality Agreement shall be, and
is hereby, extended so that it expires or is terminated upon the expiration or
termination of this Agreement.  In any
event, the obligations of confidentiality undertaken pursuant to the
Confidentiality Agreement shall survive and continue for a period of five (5)
years after termination or expiration of the present Agreement.

11.                                 PRODUCT LIABILITY INDEMNIFICATION

11.1                           VEL Indemnification. 
VEL shall indemnify Corning for sums which Corning shall
become obligated to pay any third party by reason of Corning’s liability
imposed by law for (a) bodily injury, including death, or
(b) physical injury to or destruction of tangible property, in either
event to the extent directly caused by defects resulting from the manufacturing
of Products sold by VEL or caused by VEL’s negligence.

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PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED
AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

11.2                           Corning Indemnification. 
Corning shall indemnify VEL for sums which VEL shall become obligated to
pay any third party by reason of VEL’s liability imposed by law for
(a) bodily injury, including death, or (b) physical injury to or
destruction of tangible property, in either event to the extent directly caused
by defects in Dye sold by Corning to VEL and used in Products sold by VEL or
caused by Corning’s negligence.  For the
avoidance of doubt, Corning shall have no indemnification obligation hereunder
for any claim asserted that relates to Dye either supplied to itself by VEL or
supplied by a third party in accordance with Section 4.5 above.

11.3                           Proportionate Liability. 
In the event a claim is asserted against either party for which both
parties are in part responsible due to the negligent action or omission of both
parties, then, in such instance, each party shall be responsible for only that
portion of the claim equal to the percentage of the total fault for it is
determined to be liable or responsible.

11.4                           Insurance.  Each party
shall maintain, in its own name and at its own expense, during the term of this
Agreement (and any extensions or renewals thereof) adequate insurance
protecting itself and the other from any product liability claims that may be
asserted in such amounts and with such insurance carriers as the insured party
determines to be reasonable and appropriate under the circumstances.

12.                                 LIMITATION OF LIABILITY

12.1                           Liability Disclaimer.  Neither party shall be liable to the other
for any special, consequential or indirect damages, including without
limitation, the loss of production or profits, arising from any cause of action
asserted whatsoever, even if a party has been advised of the possibility of
such damage or damages, excluding third party claims for which a party has an
obligation to indemnify the other as expressly provided herein.  Particular exceptions to this provision are
noted in sections 9.1 and 7.1.1.

13.                                 COLLABORATION

13.1                           Development Programs.  The parties anticipate that they may
collaborate on certain development activities to develop new photochromic dyes
for polycarbonate lenses or to develop new Products.  Before undertaking any joint development
activities, the parties anticipate that the development programs will be
governed by the terms and conditions of a separate joint development agreement
to be negotiated by the parties.  In any
event, the intellectual property rights associated with any collaborative or
joint development efforts undertaken by the parties, even if undertaken without
executing a separate joint development agreement, shall be as provided below:

13.1.1                  Corning IP.  Corning shall own all right, title and
interest in any and all intellectual property and the related intellectual
property rights, including patent, trademark, and trade secret, associated with
any intellectual property developed solely by employees or contractors of
Corning.

 10
 

 

PLEASE NOTE THAT CERTAIN MATERIAL HAS BEEN
OMITTED FROM THIS
AGREEMENT AND NOTED AS “*REDACTED*”
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

13.1.2                  VEL IP.  VEL shall own all right, title and interest
in any and all intellectual property and the related intellectual property
rights, including patent, trademark, and trade secret, associated with any
intellectual property developed solely by employees or contractors of VEL.

13.1.3                  Jointly-Owned
Intellectual Property.  All intellectual
property developed jointly by representatives of Corning and VEL, shall be
jointly owned by VEL and Corning. 
However, neither party shall have the right to license any third party
under the jointly-owned intellectual property without the prior written
approval of the other party.

13.1.4                  Not
Applicable to Independent Development. 
The foregoing allocations of intellectual property and intellectual
property rights shall only apply to development programs undertaken by each
party jointly with or in collaboration with the other, and shall not apply to
any independent development effort that either party may undertake on its own
with its own resources or with any third party.

14.                                 FORCE MAJEURE

14.1                         Force Majeure. 
Neither party shall be liable to the other party for any delay in
performance or failure to perform, in whole or in part, due to war or act of
war (whether an actual declaration is made or not), riot, civil commotion, act
of public enemy, fire, flood, or other act of God, act of any governmental authority,
or similar causes beyond the reasonable control of such party which could not
have been foreseen or prevented.  If any
event of force majeure occurs, the party affected by such event shall promptly
notify the other party of such event in writing and take all reasonable actions
to avoid the effect of such event.

15.                                 TERMINATION

15.1                           Term.  The
original term of this Agreement shall be for the period beginning on the
Effective Date until December 31, 2009. 
After that date, this Agreement shall automatically renew for successive
one (1) year terms unless either party notifies the other in writing of its
intention not to renew the Agreement at least one hundred eighty (180) days
prior to the expiration of the original term or the expiration of a successive
one (1) year term.

15.2                           Termination.  At any
time during the term of the Agreement, either party may terminate this
Agreement in the event the other party fails to perform any material obligation
required in be performed under this Agreement for a period of thirty (30) days
after receipt of notice from the other party of such failure and such failure
has not been cured within such thirty (30) day period; then such other party
shall have the right to terminate this Agreement immediately by giving written
notice to the other of its election to do so.

 11
 

 

PLEASE NOTE THAT CERTAIN MATERIAL HAS
BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS “*REDACTED*” PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

16.                                 DISPUTES AND GOVERNING LAW

16.1                           Governing Law.  This
Agreement shall be construed and governed in accordance with the Laws of the
State of Minnesota, without regard to conflict of law principles.  The parties specifically disclaim the United
Nations Convention on Agreements for the International Sale of Goods.

16.2                           Negotiations.  The
Parties shall make every effort to settle by amicable negotiations any
difference which may occur between them in connection with this Agreement.  If the Parties fail to reach such an amicable
settlement, either Party may refer such differences to arbitration as provided
below.

16.3                           Arbitration; Equitable Relief.  Any dispute, claim or controversy arising out
of or relating to this Agreement, or any breach hereof, shall be submitted to
binding arbitration before the American Arbitration Association (AAA) with such
arbitration proceedings to take place in Minnesota (USA) and in accordance with
the Commercial Rules of Arbitration adopted by the AAA.  Judgment upon the arbitration award may be
entered in any court having jurisdiction thereof.  The arbitration panel shall consist of a
single arbitrator chosen by the AAA.  The
arbitrator shall not have the power or authority to issue injunctive relief or an
equitable remedy and shall only award such damages or remedies as may be
specifically provided by this Agreement and applicable law.  Each party shall retain the right to pursue
injunctive relief or an equitable remedy before a court of competent jurisdiction.

17.                                 RELATIONSHIP OF THE PARTIES

17.1                           Independent Contractors. 
The parties are each independent contractors.  No agency relationship between Corning and
VEL is made by this Agreement.  Neither
party shall have any right or authority to act on behalf of the other and
neither party will represent that it has such right or authority.

18.                                 MISCELLANEOUS

18.1                           Assignment.  Neither
party may assign or delegate any of its rights, duties, liabilities, or
obligations hereunder without the prior written consent of the other party,
such consent not to be unreasonably withheld. 
In this regard, VEL acknowledges that Corning currently procures its
Dyes from a third party, and Corning may continue such practice.

18.2                           Final Agreement.  Any
representation, understanding, proposal, agreement, warranty, course of dealing
or trade usage not contained or referenced herein shall not be binding.  No modification, amendment, rescission,
waiver or other change shall be binding on VEL or Corning unless assented to in
writing by both parties.

18.3                           No Third Party Beneficiaries.  This Agreement is solely for the benefit of
VEL and Corning and not for any other person except as specifically provided
herein.

 12
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED
AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

18.4                           Validity.  The
validity, in whole or in part, of any Article, Section, clause, or subclause
hereof shall not effect the validity of the remainder of such Article, Section,
clause, or subclause, or this Agreement.

18.5                           Headings.  The
headings provided for certain Articles, Sections, clauses, or subclauses of
this Agreement or provided for convenience of reference only and shall not
impact or alter the interpretation of the language associated with such
Article, Section, clause, or subclause.

18.6                           Joint Work Product. 
This Agreement was negotiated jointly by authorized representatives of
each party; accordingly, no Article, Section, clause, or subclause shall be
interpreted against a party on the basis of such party drafting any particular
Article, Section, clause, or subclause.

18.7                           Authority. 
Each party represents and warrants to the other that it has the
requisite power and authority or has obtained such requisite power and
authority to enter into this Agreement and perform the obligations required of
it therein, and this Agreement has been signed by an authorized representative
of such party.

18.8                           Amendments.  It is
contemplated that the parties may explore expanding the scope of the parties’
relationship to include the development, sale and purchase of additional
photochromic dyes and to include manufacturing of lens products by VEL for
certain lens partners of Corning.  Any
such expansion to this Agreement in this regard shall only become effective
upon execution of a superceding agreement, an Amendment to this Agreement or a
separate agreement as the case may be.

IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed by their duly authorized representatives.

	
  Corning Incorporated

  	
   

  	
  Insight Equity A.P.X, LP

  
	
   

  	
   

  	
  (d/b/a
  Vision-Ease Lens)

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Vivian L.
  Gernand

  	
   

  	
  By:

  	
  /s/ Douglas C.
  Hepper

  
	
  Name:

  	
  Vivian L.
  Gernand

  	
   

  	
  Name:

  	
  Douglas C.
  Hepper

  
	
  Title:

  	
  Division Vice
  President & GM

  	
   

  	
  Title:

  	
  President &
  CEO

  
	
  Date:

  	
  August 4, 2005

  	
   

  	
  Date:

  	
  August 1, 2005

  
										

 

	
  Exhibit

  	
   

  	
  Contents

  
	
  A

  	
   

  	
  Specifications & Guidelines for the Dyes

  
	
  B

  	
   

  	
  Purchase Price for the Dyes; Payment Terms; Minimums

  
	
  C

  	
   

  	
  Photochromic Properties of the Products

  

 

 13
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND
NOTED AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exhibit A

Dye
Specifications & Guidelines

[*REDACTED*]

 14
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND
NOTED AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exhibit B

Pricing, Payment
Terms and Minimums

Minimum
volume:

	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  

 

[*REDACTED*]

	
  Annual Forecast Amount:

  	
   

  	
  [*REDACTED*]

  	
   

  	
  [*REDACTED*]

  
	
  Annual Forecast
  Amount:

  	
   

  	
  [*REDACTED*]

  	
   

  	
  [*REDACTED*]

  
	
  Annual Forecast
  Amount:

  	
   

  	
  [*REDACTED*]

  	
   

  	
  [*REDACTED*]

  
	
  Annual Forecast
  Amount:

  	
   

  	
  [*REDACTED*]

  	
   

  	
  [*REDACTED*]

  

 

In
event the actual annual volumes purchased by VEL are in a range different than
the annual forecast volume range, the parties shall reconcile any shortfall or
overage, as the case may be, at the end of the calendar year.

Minimum
volume per order:  [*REDACTED*].

Payment
Terms:  net sixty (60) days from the date
of the invoice.

 15
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND
NOTED AS “*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exhibit C

Photochromic
Properties of Polycarbonate Lenses

[*REDACTED*]

 16Exhibit 10.16

PLEASE NOTE THAT CERTAIN MATERIAL HAS
BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS “*REDACTED*” PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

SUPPLY AGREEMENT

This AGREEMENT (Agreement”) made this 13th day of
July, 2006 between

VISION-EASE
LENS

having its address at 7000 Sunwood Drive Northwest,
Ramsey, MN 55303 USA (hereinafter called “VE”)

and

MITSUBISHI
GAS CHEMICAL COMPANY, INC.

having its address at Mitsubishi Building, 2-5-2
Marunouchi, Chiyoda-ku, Tokyo 100-8324 JAPAN (hereinafter called “MGC”)

and

MITSUBISHI
ENGINEERING-PLASTICS CORP.

having its address at Yaesu Dai Bldg., 1-1-1 Kyobashi,
Chuo-ku, Tokyo 104-0031 JAPAN (hereinafter called “MEP”)

and

MGC
Filsheet Co., Ltd.

having its address at 4-2242 Mikashima,
Tokorozawa-shi, Saitama-ken 359-1164 JAPAN (hereinafter called “FS”)

and

YUSHI
SEIHIN CO., LTD.

having its address at Nihonbashi Hamacho Park Bldg.
5F, 35-4 Nihonbashi Hamacho 2-Chome, Chuo-ku, Tokyo 103-0007 JAPAN (hereinafter
called “YS”)

The above are hereinafter collectively referred to as
the “Parties.”

WITNESSETH

WHEREAS, the term of the original agreement between
the “Parties” dated March 1, 1999 has expired; and

WHEREAS, MEP has assigned YS to negotiate a commercial
agreement covering the continued sale of lupilon POLA (hereinafter called “POLA
Sheet”), a polarizing polycarbonate sheet in any of the following forms; flat
sheet, or formed wafers; and

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS
“*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

WHEREAS, VE is desirous to negotiate and conclude such
an agreement with MGC, MEP, FS, and YS; and,

WHEREAS, MGC, MEP, FS and YS are willing to enter into
such an agreement with VE; and

WHEREAS, that agreement must be signed by all of the
parties to this agreement. (the “Parties’) for this agreement to become valid;
and

NOW, THEREFORE, the parties hereto agree that VE shall
have the right to buy POLA Sheet and Formed Wafers under the terms and
conditions hereinafter defined.

1.             PRODUCT.

	
  Name:

  	
   

  	
  POLA Sheet and Formed Wafer

  
	
  Color:

  	
   

  	
  VGRY

  
	
   

  	
   

  	
  VBSN

  
	
   

  	
   

  	
  VOAK (VE
  supplied melanin solution)

  
	
   

  	
   

  	
  VMLB (FS
  supplied melanin solution)

  

 

POLA Sheet may be purchased as flat sheet and formed
wafer.

Additional POLA Sheet and formed wafer colors may by
added to the Agreement by joint approval of the Parties.

(See Exhibit A - POLA Sheet / Formed Wafer Colors)

2.             PERIOD AND TERMINATION.

This agreement shall commence as of September 1,
2006 and remain in effect for a period of two years and will be automatically
renewed for each successive year on a yearly basis if all parties have met all
of their obligations and duties stated under this agreement.  An annual review of the agreement will be
conducted by the Parties three months prior to automatic renewal.  In the event the negotiations to renew this
Agreement extend beyond the original term of the Agreement, the Agreement shall
remain in effect until a new agreement is signed, negotiations are terminated
by mutual agreement, or either party gives a twelve month notice of its
decision to terminate negotiations.

3.             BREACH.

Notwithstanding the foregoing, either party may
immediately terminate this Agreement for cause in the event the other party
shall breach or violate any of its warranties, representations, agreements,
covenants or conditions required by the terms of this Agreement in any material
respect and fails to remedy any such breach within 60 days with the exception
of Payment Terms where VE will have ten days to remedy any breach.  Notification of any breach will be provided
in writing to all parties.

 2
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS
“*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

4.             APPLICATION. 
Limited to polarizing plastic eyeglass lenses intended to meet Rx
standards.

5.             PRODUCT SPECIFICATIONS. 
(see Exhibit A)

6.             PURCHASE VOLUME / PRICE. 
(see Exhibit B)

7.             PRICE ADJUSTMENT. 
(see Exhibit B)

8.             PAYMENT TERMS. 
(see Exhibit B)

9.             CONFIDENTIALITY. 
(see Exhibit C)

10.           DISPUTE RESOLUTION.  All disputes arising in connection or
relating to the provisions of this Agreement shall be amicably resolved by the
Parties through good faith discussions. 
If the Parties are unable to resolve a dispute through such good faith
discussions, then such dispute including any dispute, controversy, claim or
cause of action arising out of this Agreement, or any breach thereof, shall be
finally settled by binding arbitration conducted in Minnesota in accordance
with the Rules of the American Arbitration Association when requested by any
Party other than VE in regard to a dispute involving VE, and in Tokyo, Japan in
accordance with the Rules of the Japan Commercial Arbitration Association in
all other cases.  The arbitration shall
be conducted by three arbitrators appointed by the applicable Association in
accordance with the applicable Rules. 
Judgment upon the award may be entered in any court having proper
jurisdiction.

11.           WARRANTY OF POLA SHEET AND FORMED
WAFER PRODUCTS.   MGC, MEP, FS and YS
warrant to VE that POLA Sheet and formed wafer shall perform in accordance with
the agreed specifications (see Exhibit A - POLA Sheet and Formed Wafer Quality
Specifications) and shall be free of defects in material and workmanship for
one year from delivery when stored by VE in recommended conditions (Per
Specification - POLA Sheet and Formed Wafer Storage Conditions).  VE will evaluate pre-sample and report this
result to FS within 7 VE business days of receipt of sheet.  FS will provide results of its analysis of
defective samples returned from VE within 10 FS business days of their
receipt.  Once a POLA Sheet or Formed
Wafer is rejected by VE for failure to comply with specifications, and FS
acknowledges that the film has failed to meet specifications, YS shall credit
any open VE invoice(s) issued under this Agreement for the amount corresponding
to the price of the said POLA sheet or Formed Wafer materials within 5 business
days of such request by YE.  VE may request
the replacement of defective POLA Sheet or Formed Wafer and this shall be done
as soon as possible, but in any event within 90 days of defect
acknowledgement.  Normal payment policy
will apply to this sheet and VE shall not be reimbursed for the U.S. import
duties.  VE shall have 15 days from the
Airway Bill date to notify MGC, MEP, FS and YS of such defects.  YS will reimburse VE for freight cost if VE
paid for freight, and if FS agrees with defect. 
It will be the responsibility of FS for all return freight costs on
material that has been received by VE and then is acknowledged as defective by
FS.  In the case where FS agrees that
film rejected by VE

 3
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS
“*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

doesn’t meet
specification but is partially useable, VE will receive a discount based on
usability on a case-by-case basis for rejected film plus 5% as a service fee.

POLA Sheets and Formed Waters stored by VE in
accordance to MEP’s recommended storage conditions (Per Specification - POLA
Sheet and Formed Wafer Storage Conditions) for less than one year from the Air
Waybill date which no longer meet specifications shall be reimbursed by MGC,
MEP, FS and YS at the value for which those sheets or wafers received by
VE.  VE shall notify MGC, MEP, FS and YS
of the defective sheets or formed wafers and MGC, MEP, FS and YS retain the
right to inspect and evaluate the sheets or formed wafers until such evaluation
is conclusive; and, until it is agreed between the Parties that the sheets or
formed wafers became defective within the one year warranty when stored under
appropriate conditions by VE.

12.           LIABILITY.  MGC, MEP, FS and YS shall not be liable to
VE, to VE’s employees or to customers of VE for any losses, damages, claims or
demands including but not limited to, those for consequential or indirect
damages, arising out of or resulting from the use of POLA Sheet or products
made from POLA Sheet.

13.           PRODUCT DEVELOPMENT EFFORTS /
TECHNICAL COOPERATION.

The Parties agree to continue technical cooperation to
further define current POLA Sheet and Formed Wafer product specifications and develop
new or refine existing POLA Sheet and Formed Wafer grades and colors for term
of Agreement.  MGC and FS will transfer
to VE technical know-how regarding forming POLA Sheet, which is not proprietary
to any other third parties.

14.           QUALITY IMPROVEMENT AND COST
REDUCTION.

The Parties agree to continue to improve quality and
develop cost reduction opportunities for the term of Agreement.

15.           SUCCESSORS AND ASSIGNS.  The rights and obligations of either Party
shall not be transferable without the prior written consent of the other Party,
which consent shall not be unreasonably withheld or delayed.  All obligations of the Parties herein shall
be binding upon their respective successors or assigns.

16.           GOVERNING LAW.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, the United
States of America.

17.           FORCE MAJEURE.  If the performance by either Party of their
respective obligations or undertakings under this Agreement is interrupted or
delayed by any occurrence not occasioned by the conduct of either Party to this
Agreement, whether that occurrence is caused by war, acts of civil or military
authority, riot, insurrection, national emergency, strike, energy crisis,
embargo, storm earthquake, or other national forces or by the acts of anyone
not a party to this Agreement, or by the inability to secure materials or
transportation, then the party so affected

 4
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS
“*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

shall be excused from any
further performance for whatever period of time after the occurrence as may be
reasonably necessary to remedy the effects of that occurrence.

18.           SEVERABILITY.  In case any one or more of the provisions
contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not effect any other provision hereof, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provisions had never
been contained herein.

19.           PATENT INFRINGEMENT MGC, MEP, FS and
YS agree to indemnify VE against any liability, including all costs associated
with any claims against YE, resulting or stemming from infringement by the POLA
Sheet itself in the form delivered to VE by MGC, MEP, FS or YS, of the patent
rights of any third party.  MGC, MEP, FS
and YS make no warranty or guarantee that the APPLICATION or any other
particular use of the POLA Sheet or Products derived there from does not
infringe the patent rights of a third party.

20.           No amendment or modification of this
agreement shall be made except by the mutual agreement of all of the Parties in
writing, signed by all parties, and documented as an addendum to the agreement.

21.           FS agrees to hold safety stock of
film regularly ordered by VE to insure delivery within specified lead times and
for expedited delivery in the event of rejection of defective material.  VE agrees that upon declaration of its’
insolvency that MEP has the right to sell any film produced for VE that has not
been paid for and is in the possession of FS, MEP, or YS if VE does not pay for
the film in total within 30 days.  The
parties agree that if delivery issues become a problem the parties will
immediately open discussions to resolve the issue.

IN WITNESS WHEREOF the Parties hereto have executed
this Agreement as of the date first above written.

 5
 

 

PLEASE
NOTE THAT CERTAIN MATERIAL HAS BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS
“*REDACTED*” PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	
  /s/ Douglas
  Hepper

  	
   

  
	
  VISION-EASE LENS

  	
   

  
	
  Douglas Hepper

  	
   

  
	
  President and
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
  /s/ Jun Nakao

  	
   

  
	
  MITSUBISHI GAS
  CHEMICAL COMPANY, INC.

  	
   

  
	
  Jun Nakao

  	
   

  
	
  Executive
  Officer

  	
   

  
	
  General Manager

  	
   

  
	
  Engineering-Plastics
  Division

  	
   

  
	
  Specialty
  Chemicals Company

  	
   

  
	
   

  	
   

  
	
  /s/ Hitoshi
  Kobayashi

  	
   

  
	
  MITSUBISHI
  ENGINEERING-PLASTICS CORP.

  	
   

  
	
  Hitoshi
  Kobayashi

  	
   

  
	
  Managing
  Director

  	
   

  
	
  Corporate
  Planning Department

  	
   

  
	
   

  	
   

  
	
  /s/ Kazuo
  Noguchi

  	
   

  
	
  MGC Filsheet
  Co., Ltd.

  	
   

  
	
  Kazuo Noguchi

  	
   

  
	
  President

  	
   

  
	
   

  	
   

  
	
  /s/ Toru Nakamura

  	
   

  
	
  YUSHI SEIHIN
  CO., LTD.

  	
   

  
	
  Toru Nakamura

  	
   

  
	
  President

  	
   

  

 

 6
 

 

PLEASE NOTE THAT CERTAIN MATERIAL HAS
BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS “*REDACTED*” PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exhibit
A

PRODUCT SPECIFICATIONS

[*REDACTED*]

 7
 

 

PLEASE NOTE THAT CERTAIN MATERIAL HAS
BEEN OMITTED FROM THIS AGREEMENT AND NOTED AS “*REDACTED*” PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT AND THAT MATERIAL HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exhibit
B

POLA
SHEET SUPPLIER AGREEMENT

VOLUME / PRICE / SHIPPING

[*REDACTED*]

 8

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