Document:

Confidential
Treatment Requested

 

Exhibit 10.19

 

PRODUCT SUPPLY AGREEMENT

 

This PRODUCT SUPPLY AGREEMENT (the “Agreement”),
dated as of December 8, 2005 (the “Effective Date”), between Triax
Pharmaceuticals, LLC, a Delaware corporation, having its principal place of
business at 20 Commerce, Cranford, NJ 07016 (“Triax”), and OMP, a Delaware
corporation having its principal place of business at 310 Golden Shore, Long
Beach, California (“OMP”) (OMP and Triax, each a “Party,” and collectively, the
“Parties”).

 

RECITALS

 

WHEREAS, Triax
develops, manufactures, markets and sells certain topical products containing
Tretinoin;

 

WHEREAS, OMP has
successfully marketed and sold such products in the physician-dispensed
channel; and

 

WHEREAS, OMP and
Triax deem it to be in their mutual best interests to enter into an agreement
whereby the Parties shall collaborate to incorporate “Obagi” branding and
volume-based incentives to aid OMP in its Tretinoin product sales efforts.

 

NOW THEREFORE, in
consideration of the terms, conditions and mutual covenants contained herein,
the Parties hereto agree as follows:

 

1.                         PRODUCTS;
PURCHASE ORDERS

 

1.1                    Products;
Specifications. Triax shall manufacture the following products on behalf of
OMP and sell such products to OMP: 20mL Tretinoin in 0.1%, 0.05% and 0.025%
concentrations (collectively, the “Products”). Triax shall manufacture the
Products according to the specifications described in Exhibit A (the “Specifications”),
which is hereby incorporated into this Agreement.

 

1.2                    Purchase
Orders. Triax shall agree to manufacture, sell and deliver Products to OMP
in accordance with the terms and conditions of this Agreement. From time to
time and pursuant to Sections 1.4, 1.5, and 1.6. OMP shall place purchase
orders (“Purchase Order(s)”) with Triax for the manufacture, sale and delivery
of specific quantities of Products. This Agreement is not a Purchase Order. OMP
shall have no obligation to purchase any Products hereunder until OMP has
placed a Purchase Order, and then only for the quantity of the Products stated
in such Purchase Orders and delivered according to this Agreement. OMP shall
use commercially reasonable efforts to forecast Product demand and Triax shall
use commercially reasonable efforts to provide Product quantities forecasted by
OMP as per Section 1.4, unless (and to the extent) Triax notifies OMP of an
inability to provide such quantities due to circumstances outside of Triax’s
commercially reasonable control. Such notification must be given within 15 days
of receipt of such forecast from OMP, and/or within 48 hours of Triax becoming
aware of such circumstances.

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

 

Confidential
Treatment Requested

 

1.3                    Exclusivity.
OMP shall have exclusive rights to sell the Products in the physician-dispensed
channel in the United States (including all territories of the United States)
(the “Channel”) for the first 12 months of this Agreement from the Effective
Date. Thereafter, OMP shall only maintain exclusivity in the Channel, if OMP
places Purchase Orders for at least 100,000 units of Products (in any
combination) in each calendar year covered by the term of this Agreement. If
such minimum volumes are not maintained, all other rights and obligations of
this Agreement will continue on a non-exclusive basis, beginning on January 1
of the calendar year following the calendar year in which OMP did not purchase
the minimum Purchase Order volume.

 

1.4                    Twelve
-Month Rolling Forecasts and Purchase Order Placement. Thirty days prior to
the first day of the first month of each quarter (which quarters shall begin on
January 1, April 1, July 1 and October 1 of each year) during the term of this
Agreement, OMP will provide Triax with an estimated forecast of Product orders
for the coming 12 months, including firm Purchase Orders for the second quarter
of each forecast period. OMP will place additional Purchase Orders as needed
throughout each quarter in advance of the required delivery date thereof
allowing for the Lead Time(s) (as such term is defined below). Triax shall
secure adequate supply and maintain Product materials and components to the
extent such materials and components are not typically provided by OMP, and
shall accept and fulfill Purchase Orders placed by OMP in conformance with the
terms of this Agreement. Triax shall accept Purchase Order(s) and confirm
shipment dates to OMP in writing within 5 business days of receipt of a
Purchase Order(s). As warranted, OMP shall update its forecast on a monthly
basis or as required.

 

1.5                    Quantity
Increases; Shipment. At the time that purchase forecasts are placed at the
beginning of each quarter in accordance with Section 1.4, the Parties shall
negotiate in good faith to establish: (i) a maximum quantity by which OMP may
increase the quantity of Products specified in the forecast, and the period of
time from the date of the Purchase Orders within which OMP may order any such
increased quantity; and (ii) a maximum period of time for which OMP may defer
the shipment date specified in the Purchase Orders for all or part of the
Products covered by the Purchase Orders and the period of time from the date of
the Purchase Orders within which OMP may elect any such deferral.

 

1.6                    Other
Modifications Of Purchase Order. Each Purchase Order shall constitute a
binding agreement between Triax and OMP, and the Parties may not modify a
Purchase Order except in writing and upon obtaining the signature of an
authorized representative of each Party. If any modification of a Purchase
Order causes a decrease or reasonably-supported increase in Triax’s
manufacturing cost, Triax promptly shall notify OMP prior to enacting such
change and the change, which shall be noted in writing on the Purchase Order,
shall become effective immediately upon the date of such notification.

 

1.7                    GMP Quality
standards. All Products that Triax sells and delivers to OMP under this
Agreement shall be manufactured, stored, and handled in compliance with all
applicable federal, state, and local laws, regulations, ordinances, and any
other legal requirements, including, without limitation, the Federal Food,
Drug, and Cosmetic Act, 21 U.S.C. §§ 301 et.

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

2

 

Confidential
Treatment Requested

 

seq. Triax shall document
the reliability and quality of its manufacturing and delivery processes as it
relates to the Products. At the request of OMP, Triax shall deliver in writing
to OMP personnel documentation (consistent with that which would be required by
regulatory agencies to which Triax is subject) which demonstrates the
implementation of these policies in the design, analysis, test and manufacture
of the Products, each in accordance with GMP and FDA standards to the extent
they are applicable.

 

1.8                    Triax’s
Additional Obligations. Triax shall immediately notify OMP within 24 hours
of any adverse or unexpected results or any actual or potential notice of
government action regarding a Product. Triax agrees to immediately notify OMP
of any recall of any Product and to administer and pay all costs associated
with any recall, retrieval and/or replacement of any Product.

 

1.9                    OMP
Marketing. OMP shall throughout the term of this Agreement promote, market,
and sell the Products in all of OMP’s active accounts throughout the United
States. Such activity shall include the development of sales collateral, and
incorporation of the Products into appropriate educational seminars and
physician training. OMP shall submit all sales collateral and printed material
referencing the Products to Triax for its review.

 

2.                         PRODUCT
PRICES

 

2.1                    Price List.
The prices for Products purchased hereunder shall be as specified in Exhibit
B (the “Prices”) which is hereby incorporated into this Agreement. All
Prices are fixed through the term of this Agreement in United States dollars,
except changes agreed to in a mutual, signed writing. Triax may also increase
Prices, provided such increases occur no more than once per 12 month period,
and are based on increases in costs demonstrated to OMP’s reasonable
satisfaction are the sole result of incremental increases in packaging and
labeling design costs and the integration of custom-labeled Product tubes into
the manufacturing process. Prices are exclusive of delivery charges set forth
in Section 3.2 and inclusive of (i) all applicable local, state and federal
taxes, and (ii) any other costs (including, without limitation, set-up, testing
and tooling costs and non-recurring engineering expenses) incurred by Triax in
connection with the manufacture, sale and delivery of Products.

 

OMP shall also be
entitled to volume discounts to the base pricing listed on Exhibit B, for
product purchased in excess of [***] units per year, and to the extent such
product is sold through to OMP’s customer’s within 90 days of OMP’s receipt of
such product. Volume discounts will be based on calendar year performance and
applied to cumulative quarterly purchases in excess of [***] units per quarter,
such that annualized volumes over[***] units will be sold by Triax to OMP at a [***]
discount to Prices up to [***] units; volumes over [***] shall be sold Triax to
OMP at a [***] discounts to Prices, up to [***] units; and volumes in excess of
[***] shall be sold by Triax to OMP at a [***] discount to Prices as follows;

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

3

 

Confidential
Treatment Requested

 

[***]

 

3.                         LEAD
TIME, SHIPMENT AND DELIVERY

 

3.1                    Lead Time
For Products. It is understood and agreed between the Parties that Products
with OMP-branded packaging must be manufactured in quantities of at least [***]
units per SKU. OMP shall agree to purchase quantity in its entirety within 12
months of expiration date, provided such smaller quantity as may be desired by
OMP cannot be accommodated as part of a larger production run of similar Triax
product, and only so long as such Product has a minimum 2 year expiration date
from the date of manufacture. In any event, OMP shall provide at least a 120
day lead time from the date of submission of Purchase Orders, and Triax shall
deliver all Products to OMP, and in compliance with the terms of this
Agreement, within 30 days of Triax’s receipt of such Purchase Orders (“Lead
Time”), unless otherwise mutually agreed to by the Parties in writing.

 

3.2                    Shipment.
Triax shall ship all Products purchased under this Agreement F.O.B. shipping
point, to the location specified by OMP in each Purchase Order, so as to be
received by OMP, allowing for normal transit times, in accordance with the
quantities and delivery schedule specified on the corresponding Purchase Order.
If any shipment is late due to Triax’s fault, Triax shall ship the effected
Product by such mode of expedited shipment specified by OMP, at Triax’s sole
expense. Triax shall cause the delivery of all Products to OMP’s receiving
department during normal business hours, unless otherwise directed by OMP.

 

3.3                    Mode Of
Shipment. The mode of shipment shall in each instance be ground
transportation, unless otherwise specified by OMP on the Purchase Order or
pursuant to late delivery provisions of Section 3.2. In the absence of specific
instructions by OMP, Triax will select the best carrier for shipment.

 

3.4                    Risk Of
Loss/ Insurance. Risk of loss and damage shall pass from Triax to OMP upon
delivery by Triax or the common carrier to OMP’s representative at the F.O.B.
shipping point described in Section 3.2 above.

 

3.5                    Packaging.
Product shall be packaged under Triax’s standard label, branding and package
design except that OMP shall have the right, at OMP’s own expense to develop
OMP branded packaging, label design and label copy (“Packaging Specifications”),
and to have Product manufactured with such “Packaging Specifications”. Triax
shall take commercially reasonable efforts to integrate “Packaging
Specifications” into Triax’s manufacturing processes. OMP shall submit such
Packaging design to Triax for approval as to compliance with regulatory

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

4

 

Confidential
Treatment Requested

 

requirements. Such
approval will not be unreasonably withheld. All OMP branded Products will use
the same packing tubes as currently utilized by Triax in its Tretinoin
production.

 

Packaging
Specifications shall include the phrase “Manufactured and distributed under
authority of Triax Pharmaceuticals, Inc.” and shall otherwise comply with all
applicable Food and Drug Administration (“FDA”) labeling requirements.

 

3.6                    Use of
Intellectual Property. Triax shall use any trademarks, trade names, logos,
products names, or labels of OMP, and any derivatives thereof or intellectual
property rights related thereto, solely for purposes of performing under this
Agreement and only in accordance with this Agreement and the instructions of
OMP. This Agreement is not intended to, and shall not be construed, to result
in any transfer or any such intellectual property rights or related interests,
registered or not, domestic or foreign, to Triax.

 

3.7                    Payment
Terms. The terms of payment for all Products purchased under this Agreement
shall be net 30 days from the date of OMP’s receipt of Products. Triax shall
submit all invoices to OMP’s corporate offices, Attn: Accounts Payable, unless
otherwise instructed by OMP.

 

3.8                    Delinquent
Accounts. All amounts due and owing to Triax hereunder, but not paid by OMP
within 10 days of the due date thereof, shall bear interest in U.S. dollars at
the rate of the lesser of; (i) one per cent (1%) per annum above the then
applicable prime interest rate announced by the Wall Street Journal for 90-day
U.S. dollar loans to prime commercial customers in the United States; or (ii)
the maximum lawful interest rate permitted under applicable California law.
Such interest shall accrue on the balance of unpaid amounts from time to time
outstanding from the date on which portions of such amounts become due and
owing until payment thereof in full.

 

3.9                    Billing
Disputes.

 

(a)                      In the event
that a billing dispute occurs concerning any charges billed to OMP by Triax,
OMP must submit documentation regarding the disputed amount. Documentation must
be submitted to Triax within 120 days of OMP’s receipt of billing invoice for the
Products.

 

(b)                     If the
dispute is resolved in favor of OMP and OMP has withheld the disputed amount,
no interest credits or penalties will apply. If the dispute is resolved in
favor of OMP and OMP has paid the disputed amount, OMP will be credited with interest
on such amount by Triax at the rate of one percent (1%) per month, from the
date Triax received payment up to and including the date of refund. If the
dispute is resolved in favor of Triax and OMP has paid the disputed amount on
or before the payment due date, no interest credit or penalties will apply.

 

(c)                      If the
dispute is resolved in favor of Triax and OMP has withheld the disputed amount,
any payments withheld pending settlement of the disputed amount shall

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

5

 

Confidential
Treatment Requested

 

bear interest at the rate
of one percent (1%) per month, from the payment Due Date up to and including
the date of payment.

 

(d)                     If any
continuing dispute between the Parties is not resolved within one hundred
twenty (120) days of the due date, after reasonable attempts by OMP and Triax,
the dispute will be referred to the respective executive responsible for each
Party’s respective obligations under this Agreement. The executives will
negotiate in good faith to resolve the dispute informally. During this course
of such negotiations, all reasonable requests made by one Party to the other
for information will be honored by the Parties. Both Parties shall continue
performing their respective obligations under this Agreement while the dispute
is being resolved, except to the extent that such obligations are in dispute,
unless and until this Agreement expires or is terminated in accordance with its
terms. If the Parties are unable to resolve such dispute within the process
above then either Party may exercise any remedies, in law or equity, available
to it.

 

4.                         PRODUCT
INSPECTION AND ACCEPTANCE

 

4.1                    Acceptance
Inspection and Testing. OMP shall have the right, at its sole discretion,
to perform acceptance testing and inspection of any shipment of Products (“Acceptance
Testing”) for conformance with OMP’s specifications (the “Specifications”).
Such Acceptance Testing shall take place, at OMP’s election, either on Triax’s
premises (during normal business hours and upon reasonable notice to Triax),
OMP’s premises, or at a location selected by OMP (including the premises of any
customer of OMP). OMP shall have 60 days from receipt of a shipment of Products
to perform such Acceptance Testing (“Initial Acceptance Testing Period”).

 

4.2                    Non-Conforming
Products. If OMP reasonably determines within the Initial Acceptance
Testing Period that all or any portion of a shipment of Products are
non-conforming with the Specifications, OMP shall provide Triax a notice of
non-conformance and appropriate supporting documentation, and Triax shall
promptly correct the defects identified by OMP or supply new Products within 30
days after receipt of OMP’s notice of non-conformance. All costs and expenses
associated with any such correction or replacement, including, without
limitation, transportation charges for return to Triax and subsequent return to
OMP, shall be borne solely by Triax. Upon receipt by OMP of corrected or
replaced Products, OMP shall have an additional 60 day period to conduct
Acceptance Testing (“Additional Acceptance Testing Period”). If during such
Additional Acceptance Testing Period, OMP determines that any of the Products
are still non-conforming with the Specifications, Triax shall provide new
replacement Products for all non-conforming Products at Triax’s sole cost and
expense and OMP shall have a second Additional Acceptance Testing Period for
such replacement Products.

 

4.3                    No Waiver
Of Warranty. In no event shall OMP’s inspection and acceptance of any
Product pursuant to this Section 4, or the payment for such Product by OMP, in
any way impair or reduce OMP’s rights under the warranty provisions of Section
8 of this Agreement.

 

4.4                    Facilities
Surveys. Following reasonable notice to Triax, OMP reserves the right as
necessary to review (or have its agents review), during regular business hours,
Triax’s

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

6

 

Confidential
Treatment Requested

 

manufacturing facilities
and Triax’s quality control procedures, both prior to first Product deliveries
and periodically thereafter, in order to assure compliance with the Specifications
and other standard industry practices and procedures. Triax’s failure to
correct any deficiency within these time periods shall entitle OMP to terminate
this Agreement and cancel all then-outstanding Purchase Orders for Products
which have not met acceptance, without liability or consequence to OMP.

 

5.                         SPECIFICATION
AND OTHER CHANGES

 

5.1                    Changes In Specifications. All Products shipped by Triax to OMP shall
conform to the existing Specifications. The Specifications may be amended or
otherwise changed from time to time only by written agreement of Triax and OMP.

 

5.2                    OMP Changes. OMP may propose changes to the Specifications, and Triax shall
consider the feasibility of any such proposal. Triax shall, within 30 days of
receipt of OMP’s proposal, furnish to OMP in writing its comments regarding the
proposed changes, including an expression of its willingness to implement the
same, the price implications, if any, of the change, and the time schedule
required for implementation.

 

5.3                    Change In Source Of Parts. Triax promptly shall notify OMP in writing
of, including the reason for, any change in the source (including the addition
of new vendors) of purchased components (including, without limitation, active
or inactive ingredients) for any Products. Upon request, Triax shall provide
OMP with copies of raw ingredient certificates of analysis.

 

5.4                    Notification Of Updates. Triax shall send all Updates provided to OMP
pursuant to this Section 5, unless otherwise instructed by OMP, to: OMP
Corporation, 310 Golden Shore Road, Attn: Klaus Wholand, Director of
Operations, Long Beach, California                               .

 

5.5                    Change Documentation. Triax shall, at its expense, provide OMP
with copies of all change in Specifications documentation or similar documentation
issued by it during the term of this Agreement that affects any Product. Such
copies shall be provided to OMP as soon as practicable, but in no event later
than 10 days after issuance by Triax.

 

6.                         CONFIDENTIALITY/ PROPRIETARY
INFORMATION

 

6.1                    Definitions. For purposes of this Agreement, “Trade Secrets” means information
which: (a) derives economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and (b)
is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy. “Confidential Information” means information, other than
Trade Secrets, that is of value to its owner and is treated as confidential. “Proprietary
Information” means Trade Secrets and Confidential Information of OMP.

 

6.2                    Proprietary Information. The Parties agree that any and all
Proprietary Information exchanged prior to this Agreement have been subject to
the terms and conditions of those certain Confidentiality Agreements as signed
between the parties from time to time.

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

7

 

Confidential
Treatment Requested

 

Further,
the Parties acknowledge and agree that any and all Proprietary Information
exchanged in the past and that which may be exchanged from time to time under
this Agreement, shall be under an obligation by the receiving party to maintain
the confidentiality of such information.

 

6.3                    Nondisclosure Requirements. Each party shall hold Proprietary Information
of the other party in strictest confidence and not to copy, reproduce,
distribute, manufacture, duplicate, reveal, report, publish, disclose, cause to
be disclosed, or otherwise transfer the Proprietary Information to any third
party, or utilize the Proprietary Information for any purpose whatsoever other
than as expressly contemplated by this Agreement or as otherwise mutually
agreed to in writing. Proprietary Information shall only be disclose to
employees, representatives and consultants of the parties who are under a
written obligation to comply with the nondisclosure obligations set forth
herein. Each party shall cause such employees, representatives and consultants
to comply with the nondisclosure obligations set forth herein. Each party shall
immediately notify the other party in writing of any suspected or known breach
of the obligations or restrictions set forth in this Section 6. Each party
shall cooperate with the other party to prevent, cure and mitigate any harmful
or potentially harmful effects of any suspected or known breach.
Notwithstanding the foregoing, any previously executed Confidentiality
Agreements between the Parties shall continue in full force and effect,
provided that to the extent of any inconsistency or ambiguity between such
agreements and this Agreement, this Agreement shall control and govern in all
respects.

 

6.4                    Exceptions. The obligations of Section 6.3 shall not apply if and to the extent
that: (i) the Proprietary Information communicated was already known without
obligation to keep such information confidential, at the time of receipt; (ii)
the Proprietary Information communicated was received in good faith from a
third party lawfully in possession thereof and having no obligation to keep
such information confidential; or (iii) the receiving Party establishes that
the Proprietary Information communicated was publicly known at the time of
receipt or has become publicly known other than by a breach of this Agreement.
If the receiving Party is required to disclose all or part of the Proprietary
Information pursuant to any legal requirement of any country which may have
jurisdiction over such Party, such Party shall immediately upon becoming aware
that such disclosure is required, give the other Party notice of the
circumstances in which the disclosure is required and obtain agreement from the
other Party on the extent and timing of such disclosure, and provide assistance
in obtaining any injunction on such disclosure, if applicable.

 

6.5                    Publicity. Each Party shall not, without the prior written consent of the other
Party, issue any news releases, advertisements or other promotional materials
that refer to, or otherwise disclose any information relating to, such other
Party, this Agreement, such other Party’s business affairs or the performance
of any Purchase Order.

 

6.6                    Proprietary Information. Any OMP Proprietary Information that is or
has been provided to Triax in connection with this Agreement or the negotiation
of any Purchase Order, whether in written form or otherwise, shall remain the
sole and exclusive property of OMP and may not, without the prior written
consent of OMP, be used by Triax for any other purpose,

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

8

 

Confidential
Treatment Requested

 

including,
without limitation, the development, marketing or sale of any product or part
to any other customer or any prospective customer of Triax.

 

Any Triax Proprietary Information that is or has been provided to OMP in
connection with this Agreement or the negotiation of any Purchase Order,
whether in written form or otherwise, shall remain the sole and exclusive
property of Triax and may not, without the prior written consent of Triax, be
used by OMP for any other purpose, including, without limitation, the
development, marketing or sale of any product or part to any other customer or
any prospective customer of OMP.

 

6.7                    Injunctive Relief. The obligations of the Parties under this
Section 6 shall survive the
expiration or termination of this Agreement. OMP and Triax acknowledge and
agree that the extent of damages in the event of a breach of this Section 6 of the Agreement would be difficult or
impossible to ascertain and that there will be available no adequate remedy at
law in the event of any such breach. Both Parties therefore agree that in the
event either Party breaches any provision of this Section 6, the non-breaching
Party shall be entitled to specific performance and injunctive or other
equitable relief, in addition to any other relief to which it may be entitled
at law or in equity.

 

7.                         TERM AND TERMINATION

 

7.1                    Term. This Agreement shall commence as of the date hereof and remain in full
force and effect for an initial term of 5 years (the “Initial Term”).
Thereafter, this Agreement shall be renewed automatically for a successive 5
year term, unless written notice is provided by either party at least 120 days
before the end of the then-current term, in which event this Agreement shall
end on the last day of such term. The Initial Term and any renewals shall be
constitute the “Term.”

 

7.2                    Termination For Breach. Either Party may terminate this Agreement
upon 30 days’ prior written notice to the other Party in the event that the
other Party breaches or fails to fulfill any of its material obligations under
this Agreement (including, without limitation, making deliveries of Products
within the deadlines specified on any Purchase Order, or providing Products
that do not meet the Specifications). However, if during such 30 day notice
period the other Party shall have remedied such failure, this Agreement shall
continue in full force and effect as if such failure had not occurred.

 

7.3                    Termination For Other Reasons. This Agreement shall terminate forthwith, at
the option of either Party by written notice to the other Party, if the other
Party ceases to carry on its business or becomes the subject of any proceeding
under state or federal law for the relief of debtors or otherwise becomes
insolvent, bankrupt or makes an assignment for the benefit of creditors, or
upon the appointment of a receiver for the other Party or the reorganization of
the other Party for the benefit of creditors.

 

7.4                    Rights After Termination. Termination of this Agreement by either
Party shall not prejudice the right of it or the other Party to recover any
monies or require performance of any obligations due at the time of such
termination. In the event of termination of this

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

9

 

Confidential
Treatment Requested

 

Agreement Triax shall, at
OMP’s sole discretion and option, pass title and deliver to OMP completed
Products in its possession meeting the Specifications, provided that OMP pays a
reasonable price not to exceed the price that would have applied if Triax had
delivered such Products according to the terms of the applicable Purchase
Orders.

 

8.                         OMP
WARRANTY AND INDEMNITY

 

8.1                    Warranties.
OMP represents and warrants to Triax that: (a) OMP has full authority to
execute and perform this Agreement; (b) this Agreement has been duly executed
and delivered by OMP and constitutes the legal, enforceable and binding
obligation of OMP; (c) OMP’s execution and performance of this Agreement will
not conflict with the terms or conditions of any other agreement or contract to
which OMP is a party or is otherwise bound; (d) no approval, action or
authorization by any governmental authority or agency is required for OMP’s
execution and performance hereof which has not already been obtained; and (e)
OMP will notify Triax within twenty-four (24) hours of receiving any notice or
upon discovery of any adverse event arising from the sale or use of the
Products.

 

8.2                    OMP
Indemnification. OMP shall defend, indemnify and hold harmless Triax and
its officers, directors, employees, and agents against any claims, complaints
or investigations to the extent arising from the negligence or willful
misconduct of OMP, its employees, agents, or contractors (other than Triax) in
the performance of its obligations under this Agreement. OMP will pay all
resulting costs, including, without limitation, all damages, penalties, court
costs and attorneys’ fees finally awarded, provided Triax promptly notifies OMP
in writing of any such claim. OMP retains sole and exclusive control of the
defense and all related settlement negotiations, and Triax shall provide OMP
with such assistance, cooperation and all related information for such defense
as OMP may reasonably request.

 

OMP shall defend,
indemnify and hold harmless Triax and its officers, directors, employees, and
agents from any claims, complaints or investigations that the Products, OMP
technical and sales literature or the OMP marks infringe a patent, trademark or
copyright of a third party (a “Claim”), and pay resulting court costs, damages
and legal fees incurred in connection with such actions relating to such claim,
provided (i) Triax notified OMP promptly in writing of any such action and any
and all related claims and (ii) Triax gives OMP sole control of the defense of
same and all negotiations for its settlement or compromise. Should any Products
become, or in OMP’s opinion be likely to become, the subject of a claim of
infringement, Triax shall permit OMP, at OMP’s option and expense, to (a)
procure for Triax the right to continue manufacturing the Products, (b) replace
or modify the Products to become non-infringing, or (c) if neither procurement
or replacement are commercially reasonable, terminate this Agreement
immediately with no further obligation or liability to Triax. Notwithstanding
the foregoing, OMP shall have no liability for any claim of infringement to the
extent based upon any modification of the Products, OMP technical and sales literature
and the OMP marks are not made by OMP or its authorized representatives. THE
FOREGOING STATES THE ENTIRE LIABILITY OF OMP WITH RESPECT TO INFRINGEMENT OF
ANY PROPERTY RIGHT OF A THIRD PARTY BY THE PRODUCTS, OMP TECHNICAL AND SALES
LITERATURE AND THE OMP MARKS. Notwithstanding the provisions of this Section 9,

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

10

 

Confidential
Treatment Requested

 

this Agreement shall not
limit the liability of OMP for personal injury, including death, arising from
(i) the gross negligence of OMP or its employees acting in the course of their
employment or (ii) defects in the design or manufacture, including without
limitation, defects in packaging, labeling or instructions, of the Products.

 

8.3                    Survival.
The provisions of this Section 8 shall survive the term and any termination of
this Agreement regardless of the cause.

 

9.                         TRIAX
WARRANTY AND INDEMNITY

 

9.1                    Warranties.
Triax represents and warrants to OMP that: (a) Triax has full authority to
execute and perform this Agreement; (b) this Agreement has been duly executed
and delivered by Triax and constitutes the legal, enforceable and binding
obligation of Triax; (c) Triax’s execution and performance of this Agreement
will not conflict with the terms or conditions of any other agreement or
contract to which Triax is a party or is otherwise bound; and (d) no approval,
action or authorization by any governmental authority or agency is required for
Triax’s execution and performance hereof which has not already been obtained.
Triax further represents and warrants that all Products delivered to OMP shall
conform in all respects to and shall have been manufactured, assembled,
labeled, packaged, stored, transported, handled and disposed of in accordance
with the terms and conditions of this Agreement and that such Triax activities
fully comply with all applicable government regulations including, without
limitation, Good Manufacturing Practices of the Food and Drug Administration.

 

9.2                    Triax
Indemnification.

 

Triax shall
defend, indemnify and hold harmless OMP and its officers, directors, employees,
contractors, and agents against any claims, costs (including reasonable
attorney fees) complaints or investigations to the extent arising from the
negligence or willful misconduct of Triax, its employees, agents, or
contractors in the performance of its obligations under this Agreement. Triax
will pay resulting costs, damages, court costs, penalties and attorneys’ fees
finally awarded, provided OMP promptly notifies Triax in writing of any such
claim. Furthermore, Triax indemnifies, defends and holds harmless OMP, its
directors, officers, employees, agents and contractors, from and against all
liabilities, claims, suits, damages, losses, causes of action, and expenses
(including reasonable attorneys’ fees and court costs), and all costs and
administrative fees associated with any recall of any Product. Triax retains
sole and exclusive control of the defense and all related settlement
negotiations, provided Triax shall not settle any claim without the prior
written consent of OMP. OMP shall provide Triax with such assistance,
cooperation and all related information for such defense as Triax may
reasonably request.

 

9.3                    Warranty
Notwithstanding Acceptance. Triax’s warranty obligations pursuant to this
Section 9 shall remain in full force and effect with respect to all Products,
notwithstanding the Products meeting acceptance by OMP.

 

9.4                    Product
Liability Indemnification. Triax agrees to defend, protect, indemnify and
hold harmless OMP and each of its officers, directors, employees and agents
from and against all

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

11

 

Confidential
Treatment Requested

 

Product liability and
regulatory liability, including, without limitation, environmental liabilities,
and attorney fees resulting from any claims by third parties for loss, damage
or injury (including death) allegedly caused by any Product purchased under
this Agreement. OMP agrees to promptly notify Triax of all such claims, and to
permit Triax to control, at its expense, any negotiation, arbitration or
litigation concerning such claims; provided Triax shall not settle any claim
without the prior written consent of OMP.

 

9.5                    Survival.
The provisions of this Section 9 shall survive the term and any termination of
this Agreement regardless of the cause.

 

10.                  LIMITATION OF
LIABILITY

 

10.1              IN NO EVENT WILL
EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL (INCLUDING WITHOUT
LIMITATION ANY LOSS OF PROFITS OR BUSINESS OPPORTUNITIES), EXEMPLARY,
INCIDENTAL OR INDIRECT OR PUNITIVE DAMAGES OR COSTS (INCLUDING LEGAL FEES AND
EXPENSES) OR LOSS OF GOODWILL OR PROFIT IN CONNECTION WITH THE SUPPLY, USE OR
PERFORMANCE OF THE PRODUCTS PROVIDED HEREUNDER, OR IN CONNECTION WITH ANY CLAIM
ARISING FROM OR RELATED TO THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES OR COSTS OR IF THE EXCLUSIVE REMEDIES STATED
HEREIN FAIL OF THEIR ESSENTIAL PURPOSE.

 

Notwithstanding
the provisions of this Section 110, this Agreement shall not limit the
liability of either Party for personal injury, including death, arising from
the gross negligence or willful misconduct of such Party or its employees
acting in the scope of their employment.

 

11.                  MISCELLANEOUS
PROVISIONS

 

11.1              Relationship Of
Parties. Neither this Agreement nor any Purchase Order executed pursuant to
this Agreement shall be deemed to create or constitute a partnership, joint
venture or business organization of any kind or nature whatsoever between Triax
and OMP.

 

11.2              Order Of
Precedence. In the event of a dispute between the Parties with respect to
the terms and conditions of any Purchase Order, the order of precedence in
interpreting any such terms and conditions shall be as follows: (i) information
(other than the Terms and Conditions) printed on the Purchase Order; (ii) the
terms of this Agreement; and (iii) the Specifications. In the event of any
conflict between the Terms and Conditions printed on a Purchase Order and the
provisions of this Agreement, the terms of this Agreement shall prevail.

 

11.3              Entire Agreement.
This Agreement (including the exhibits hereto) together with any
Confidentiality Agreements sets forth the entire agreement between the Parties
and supersedes any prior agreements or understanding, written or oral, relating
to the subject matter of this Agreement. Nothing in this Agreement, whether
expressed or implied, is intended to confer any rights or remedies under or by
reason of this Agreement on any persons other than the Parties to this
Agreement and to their respective successors and assigns.

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

12

 

Confidential
Treatment Requested

 

11.4              Remedies; Waiver.
The remedies provided herein shall be cumulative and in addition to any other
remedies available at law or in equity. Any waiver or delay in the exercise by
either Party of any of its rights under this Agreement shall not be deemed to
prejudice such Party’s right of termination or enforcement for any further,
continuing or other breach by the other Party.

 

11.5              Force Majeure.
Neither Party shall be liable for delay or failure to perform, in whole or in
part, by reason of contingencies beyond the reasonable control of the Party
affected, whether herein specifically enumerated or not, including among
others, acts of God, war, acts of war, revolution, civil commotion, riots, acts
of public enemies, blockage or embargo, delays of carriers, car shortage, fire,
explosion, breakdown of equipment, strike, lockout, labor dispute, casualty or
accident, earthquake, epidemic, flood, cyclone, tornado, hurricane or other
windstorm, delays of vendors or other contingencies interfering with production
or with customary or usual means of transportation, or by reason of any law,
order, proclamation, regulation, ordinance, demand, requisition or requirement
or any other act of any governmental authority, local, state or federal,
including court orders, judgments or decrees, or any other cause whatsoever,
whether similar or dissimilar to those above affected; provided, however,
that the Party so affected shall promptly give notice to the other Party
whenever such contingency or other act becomes reasonably foreseeable and shall
use its reasonable best efforts to overcome the effects of the contingency as
promptly as possible.

 

11.6              Severability.
If any term or provision of this Agreement or the application thereof to any
person or circumstance shall be invalid or unenforceable, to any extent, the
remainder of this Agreement, or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term and provision of
this Agreement shall be valid and enforced to the fullest extent permitted by
law.

 

11.7              Dispute
Resolution. Any claim, controversy or dispute which arises between the
Parties, their agents, employees, officers, directors or affiliates (“Dispute”)
which the Parties are unable to settle through consultation and negotiation may
be mediated under the Commercial Mediation Rules of the American Arbitration
Association (“AAA”) by a mutually acceptable mediator. Any Dispute which cannot
be resolved through negotiation or mediation shall be resolved by binding
arbitration as provided in this Section 11.7. The arbitrability of claims shall
be determined under the Federal Arbitration Act, 9 USC Secs. 1-16.
Notwithstanding the foregoing, the Parties may cancel or terminate this
Agreement in accordance with its terms and conditions without being required to
follow the procedures set forth in this Section 11.7.

 

A single
arbitrator engaged in the practice of law, who is knowledgeable about the
subject matter of this Agreement and the matter in Dispute, shall conduct the
arbitration under the rules of the AAA then in effect, except as otherwise
provided herein. The arbitrator shall be selected in accordance with AAA
procedures from a list of qualified people maintained by the AAA. The
arbitration shall be conducted in New York, New York and all expedited
procedures prescribed by the AAA rules shall apply. The laws of New York shall
govern the construction and interpretation of this Agreement. The arbitrator’s
decision and award shall be final,

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

13

 

Confidential
Treatment Requested

 

conclusive and binding,
and judgment may be entered upon it in accordance with applicable law in any
court having jurisdiction thereof.

 

Either Party may
request from the arbitrator injunctive relief to maintain the status quo until
such time as the arbitration award is rendered or the Dispute is otherwise
resolved. The arbitrator shall not have authority to award punitive damages.
Each Party shall bear its own costs and attorneys’ fees, and the Parties shall
share equally the fees and expenses of the mediator and arbitrator.

 

If any Party files
a judicial or administrative action asserting claims subject to arbitration, as
prescribed herein, and another Party successfully stays such action and/or
compels arbitration of said claims, the Party filing said action shall pay the
other Party’s costs and expenses incurred in seeking such stay and/or
compelling arbitration, including reasonable attorneys’ fees.

 

Triax agrees that
in the event of any Dispute between the Parties, it will continue to provide
Products without interruption. OMP agrees that in the event of any Dispute
between the Parties, it will continue to pay for Products delivered by Triax
under this Agreement.

 

11.8              Toxic Materials.
Nothing used in the manufacture of the Products and components thereof covered
by this Agreement shall contain any materials or chemicals not approved for the
intended use of the Products. Triax warrants that all packaging material
furnished under this Agreement (including any Purchase Order) and all packaging
associated with material furnished under this Agreement were not manufactured
using and do not contain chlorofluorocarbons, including polystyrene foam
manufactured through a process using any of the following blowing agents:
CFC-11, CFC-12, CFC-113, CFC-114 or CFC-115. Triax shall defend, indemnify and
hold OMP and its officers, directors, employees, contractors, and agents
harmless from any liability, fine, penalty, or costs (including, without
limitation, reasonable attorney fees) incurred by OMP or any of its directors,
officers, employees, contractors, or agents to any third party or governmental
agency arising out of OMP’s good faith reliance upon said warranty.

 

11.9              Notices. All
notices, demands, approvals, requests or other communications which may be or
are required to be given, served or sent by either Party to the other, shall be
in writing and shall be delivered personally, by certified mail, return receipt
requested, or by telegraphic, telex, facsimile or cable communication at the
address set forth below, or, as to each Party, at such other address as shall
be designated by such Party in a written notice to the other Party:

 

If to Triax, to:

 

	
   

  	
  TRIAX PHARM

  	
   

  
	
   

  	
  20 COMMERCE DR. 

  	
   

  
	
   

  	
  CRANFORD, NJ 07016

  	
   

  

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

14

 

Confidential
Treatment Requested

 

If to OMP, to:

 

	
   

  	
  OMP

  
	
   

  	
  310 Golden Shore, Ste. 100

  
	
   

  	
  Long Beach, CA 90802

  
	
   

  	
  Attn: Curtis Cluff

  

 

11.10        Assignment. Neither
Party shall, without the written consent of the other not to be unreasonably
withheld, assign or transfer this Agreement or any rights or obligations
hereunder.

 

11.11        Counterparts. This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the Parties and delivered to the
other Party, it being understood that all Parties need not sign the same
counterpart.

 

11.12        Further Assurances.
Each party hereto agrees to execute, acknowledge and deliver such further
instruments, and to do all such other acts as may be necessary or appropriate
in order to carry out the purposes and intent of this Agreement.

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be
duly executed by their respective authorized representatives as of the date
first above written.

 

 

	
  OMP

  	
   

  	
  Triax
  Pharmaceuticals, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURE:

  	
  /s/
  Curtis Cluff

  	
   

  	
  SIGNATURE:

  	
  /s/
  Leonard L Mazur

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
  Curtis
  Cluff

  	
   

  	
  NAME:

  	
  Leonard
  L Mazur

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
  E.V.P.
  Corp. Dev. & Operations

  	
   

  	
  TITLE:

  	
  C.O.O.

  
							

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

15

 

Exhibit A

 

	
  PRODUCT

  	
   

  	
  PARAMETER

  	
   

  	
  SPECIFICATIONS

  
	
  Tretinoin 0.025% Cream

  	
   

  	
  Color

  	
   

  	
  Off-White to Pale
  Yellow

  
	
   

  	
   

  	
  Fragrance

  	
   

  	
  Waxy Odor

  
	
   

  	
   

  	
  Appearance

  	
   

  	
  Homogeneous Cream

  
	
   

  	
   

  	
  Viscosity

  	
   

  	
  11,000-31,500 cps

  
	
   

  	
   

  	
  pH 10% solution

  	
   

  	
  3.5-4.9

  
	
   

  	
   

  	
  Specific Gravity

  	
   

  	
  0.90 – 1.05

  
	
   

  	
   

  	
  Assay Tretinoin

  	
   

  	
  90.0-120

  
	
   

  	
   

  	
  Total Microbial Count

  	
   

  	
  <3 Total Count

  
	
   

  	
   

  	
  Specific Pathogens: 

  •
  Pseudomonas Aeruginosa

  • Staphylococcus
  Aureus

  • E. Coli

  • Salmonella
  Species

  	
   

  	
  Negative for all

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tretinoin 0.05% Cream

  	
   

  	
  Color

  	
   

  	
  Off-White to Pale
  Yellow

  
	
   

  	
   

  	
  Fragrance

  	
   

  	
  Waxy Odor

  
	
   

  	
   

  	
  Appearance

  	
   

  	
  Homogeneous Cream

  
	
   

  	
   

  	
  Viscosity

  	
   

  	
  NLT 37,500 cps

  
	
   

  	
   

  	
  pH 10% solution

  	
   

  	
  3.5-4.9

  
	
   

  	
   

  	
  Specific Gravity

  	
   

  	
  0.90-1.05

  
	
   

  	
   

  	
  Assay Tretinoin

  	
   

  	
  90.0-120

  
	
   

  	
   

  	
  Total Microbial Count

  	
   

  	
  <3 Total Count

  
	
   

  	
   

  	
  Specific Pathogens:

  • Pseudomonas
  Aeruginosa

  • Staphylococcus
  Aureus

  • E. Coli

  • Salmonella
  Species

  	
   

  	
  Negative for all

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tretinoin
  0.1% Cream

  	
   

  	
  Color

  	
   

  	
  Off-White to Pale
  Yellow

  
	
   

  	
   

  	
  Fragrance

  	
   

  	
  Waxy Odor

  
	
   

  	
   

  	
  Appearance

  	
   

  	
  Homogenous Cream

  
	
   

  	
   

  	
  Viscosity

  	
   

  	
  NLT 37,500 cps

  
	
   

  	
   

  	
  pH 10% solution

  	
   

  	
  3.5-4.9

  
	
   

  	
   

  	
  Specific Gravity

  	
   

  	
  0.90-1.05

  
	
   

  	
   

  	
  Assay Tretinoin

  	
   

  	
  90.0-120

  
	
   

  	
   

  	
  Total Microbial Count

  	
   

  	
  <3 Total Count

  
	
   

  	
   

  	
  Specific Pathogens:

  • Pseudomonas
  Aeruginosa

  • Staphylococcus
  Aureus

  • E. Coli

  • Salmonella
  Species

  	
   

  	
  Negative for all

  

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

 

Exhibit B

Base Pricing By
Product

 

	
  Product Description

  	
   

  	
  Price

  
	
  Tretinoin 0.025%

  	
   

  	
  [***]

  
	
  Tretinoin 0.05%

  	
   

  	
  [***]

  
	
  Tretinoin 0.1%

  	
   

  	
  [***]

  

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

 

FIRST
AMENDMENT TO

PRODUCT SUPPLY AGREEMENT

 

THIS FIRST AMENDMENT
(“Amendment”) PRODUCT SUPPLY AGREEMENT dated
December 8th, 2005 (“License Agreement”) is entered into, as of
August 31, 2006, between OMP, INC. (“OMP”),
a Delaware corporation having its principal place of business at
310 Golden Shore, Long Beach, California 90802, U.S.A., and Triax Pharmaceuticals, LLC. (“Triax”), a Delaware company
having its principal place of business at 20 Commerce, Cranford, NJ 07016.

WHEREAS, the
parties have mutually performed under the License agreement to date, to their
mutual benefit; and

WHEREAS, the
parties wish to simplify the rights and obligations specific to the application
of volume discounts based on annual volume targets;

NOW, THEREFORE,
in consideration of mutual promises contained herein, the parties agree to
amend the License agreement as follows:

Additions, deletions and changes to the current
language of the contract;

1)        The
second paragraph in Section 2 shall be replaced in it’s entirety with the
following paragraph;

OMP shall also be entitled to volume discounts to the base pricing
listed on Exhibit B, for product purchased in excess of [***] units per
year, and to the extent such product is sold through to OMP’s  customer’s within 90 days of OMP’s receipt of
such product. Volume discounts will be based on calendar year performance and
applied to cumulative year-to-date purchases in excess of [***] units per year,
such that annualized volumes over [***] units will be sold by Triax to OMP at
[***] discount to Prices up to [***] units; volumes over [***] shall be sold
Triax to OMP at [***] discounts to Prices, up to [***] units; and volumes in
excess of [***] shall be sold by Triax to OMP at a [***] discount to Prices as
follows;

2)        The
table following the second paragraph in section 2 shall be replaced in it’s
entirety with the following table;

[***]

 

1

 

IN WITNESS WHEREOF,
the parties execute this Amendment as of the date set forth herein above.

 

	
  OMP

  	
   

  	
  TRIAX
  PHARMACEUTICALS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Curtis Cluff

  	
   

  	
   

  	
  /s/
  Leonard L Mazur

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Curtis
  Cluff

  	
   

  	
  By:

  	
  Leonard
  L Mazur

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive
  VP. Corporate Dev/Ops.

  	
   

  	
  Title:

  	
  Chief
  Operating Officer

  

 

THE SYMBOL [***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTION.

 

2Confidential
Treatment Requested

 

Exhibit 10.20

 

CONSULTANT SERVICES AND

CONFIDENTIALITY AGREEMENT

 

This
Consultant Services and Confidentiality Agreement (the “Agreement”) is made and
entered into as of the 18th day of July, 2005 (the “Effective Date”)
by and between Obagi Medical Products, Inc., a Delaware corporation (“OMP”
or “Company”) and Jose Ramirez and JR Chem LLC (“JR” or “Consultant”).

 

Recitals

 

WHEREAS,
Consultant is being engaged to perform certain services for Company as
described in this Agreement in exchange for the compensation set forth herein.

 

WHEREAS,
in performing the services, Consultant will be involved with and have access to
information and materials of a highly sensitive nature which must be carefully
protected for Company’s success including, without limitation, certain
confidential information and trade secrets of Company.

 

WHEREAS,
Company and Consultant desire to define the rights and obligations between the
parties with respect to the subject matter hereof.

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements herein and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Company and Consultant agree as follows:

 

1.                         Terms and Conditions of
Consultant Engagement.

 

(a) Term.
Consultant shall commence providing services on January 1, 2005, for a
period of five (5) years (the “Initial Term”). If the parties mutually
agree in writing, within sixty (60) days prior to the expiration of the
then-current term, the Initial Term may be extended for up to two,
one-year renewal terms (each a “Renewal Term”).

 

(b) Service.
Consulting services (the “Services”) will include such activities as product
formulation, product development and regulatory work and such other services as
reasonably requested by Company, as well as the provision of sound scientific
support of marketing claims, research related to publications or presentations
resulting from clinical studies, alternative manufacturing site sourcing or
rectification of manufacturing processes or practices as they relate to quality
and such other projects and activities as reasonably requested by Company from
time to time. The Services may be more specifically defined in various
Statements of Work from time to time which shall become a part of this
Agreement and are hereby incorporated herein by this reference. In the event of
a conflict between the terms of this Agreement and the Statement of Work, the
Statement of Work shall control. The results of the Services shall be referred
to herein as “Work.” Consultant agrees to do the following as part of the
Services:

 

(i) Consultant
shall participate in such meetings as are reasonably requested by Company from
time to time.

 

(ii) Consultant
shall cooperate in good faith toward the development of the requirements and
deliverables for various Company projects (“Projects”) and related Company
project plan timeline (“Projects Plans”).

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

1

 

Confidential
Treatment Requested

 

(iii) Consultant
shall use its commercially reasonable efforts to undertake and complete each
Project in accordance with, and substantially on the schedule specified
in, the applicable Project Plan and provide tangible embodiments of the various
deliverables as defined in the Project Plans including, without limitation,
progress reports, formulations, methods, techniques, know-how, ideas or
inventions.

 

(iv) Unless
otherwise provided all deliverables under any Project are subject to acceptance
by Company using reasonable commercial judgment.

 

(v) Consultant
shall provide such technical support and training as Company may request
from time to time.

 

(c) Conflict
of Interest Prohibited. It is also understood that, during the Initial Term
and any Renewal Term(s) of this Agreement, Consultant may not consult,
work or serve in any capacity for (1) another person or entity which
intends to operate or does operate in any business in competition with the
Company (“Competitor”)or (2) any past, current or future customer of the
Company (“Customer”) to work in a field of work: (i) similar to the
Services, Skin Healthcare, or dermatology, aesthetic procedures, and/or plastic
surgery; (ii) related to technology similar to the Company’s technology or
(iii) that could result in disclosure of Company’s Confidential
Information. Notwithstanding the foregoing, if OMP is offered the option to
pursue an Other Invention (as hereinafter defined) by Consultant but refuses to
obtain rights in such Other Invention in accordance with this Agreement, then
Consultant shall be free to pursue that specific Other Invent (but not anything
beyond) with such third party as it chooses so long as: (i) such third
party is not a Customer or Competitor, and (ii) at all times Consultant
strictly observes all obligations hereunder including, without limitation,
obligations of confidentiality. Not withstanding the foregoing, it will not be
a conflict of interest for Consultant to continue to work with any person or
entity with which Consultant is currently working.

 

(d) Means
and Methods. The Consultant agrees to furnish personal services as provided
herein as an independent contractor using Consultant’s own means and methods.

 

(e) Compensation.
During the term of this Agreement and subject to the terms and conditions
hereof, the Company shall pay to Consultant for Services a fee which is the
total of time worked at the agreed to service rates ([***] per day and which
will be adjusted annually for cost of living increases as determined by the
United States Consumer Price Index) as provided by Consultant as they are
incurred, consistent with the historical practice of the parties, in a detailed
invoice and subject to Company's reasonable acceptance; the sum of said
invoices shall at a minimum be equal to US$100,000 per year (“Minimum Amount”).
Company will pay the invoiced amount within thirty (30) days from receipt of
the invoice. The payment herein provided shall constitute full payment for Consultant's
Services to the Company during the term of this Agreement, and Consultant shall
not receive any additional benefits or compensation for consulting services,
except that the Company will reimburse Consultant for reasonable and customary
expenses incurred at the Company's request in connection with such consulting.
All such costs and expenses shall be itemized in a statement and each statement
shall be accompanied by substantiating bills or vouchers. The Consultant must
obtain prior authorization for any expenses which Consultant reasonably expects
to exceed one thousand dollars ($1000.00). The Company will not reimburse
Consultant for basic office expenses, including, but not limited to, meals,
office space, equipment, telephone, postage, copying, stationary, business
cards.

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

2

 

Confidential
Treatment Requested

 

(f) Consultant
Responsible for Taxes and Indemnification. Without limiting any of the
foregoing, Consultant agrees to accept exclusive liability for the payment of
taxes or contributions for unemployment insurance or old age pensions or
annuities or social security payments which are measured by the wages, salaries
or other remuneration paid to Consultant, if any, and to reimburse and
indemnify the Company for such taxes or contributions or penalties which the
Company may be compelled to pay. The Consultant also agrees to comply with
all valid administrative regulations respecting the assumption of liability for
such taxes and contributions.

 

(g) Company
Buy-Out Option. Company may buy-out the Consultant’s service
obligation (the “Buy-Out Option”) for the then-current term as follows: the
present value of [***] of the then remaining Minimum Amount for Services not
yet incurred; and the present value of any remaining royalty obligations at a
fair value as reasonably and in good faith agreed to by the parties based on
historic royalties and reasonable good faith estimates of future royalties. In
the event that the Company's stock becomes publicly traded, at the sole option
of Company's Board of Directors, Company may make such buy-out payment by
offering stock or a combination of stock and cash at a fair market valuation
and terms subject to Company's Board approval.

 

(h) Termination
by Death. This Agreement shall automatically terminate upon Consultant’s
death. In such event, the Company shall be obligated to pay Consultant’s estate
or beneficiaries only the accrued but unpaid fees and expenses due as of the
date of death and any royalty obligations that continue after the termination
of the Agreement.

 

(i) Termination
by Notice. This Agreement is terminable by the Company, without triggering
the Buy-Out Option, effective upon thirty (30) days’ notice to Consultant for
any violation by Consultant of any provision of this Agreement, unless
Consultant is able to cure such violation within the notice period. Subject to
the Buy-Out Option, this Agreement is terminable for convenience by the Company
at any time in its sole and absolute discretion, effective upon thirty (30)
days’ notice to Consultant. If the Company exercises its right to terminate the
Agreement, any obligation, except for royalty obligations, it may otherwise
have under this Agreement shall cease immediately. The Consultant’s obligations
pursuant to Section 1(c) (conflict of interest prohibition) of this
Agreement shall continue, however, beyond the termination of this Agreement for
the duration of its term. The Consultant’s obligation pursuant to Sections 2, 3,
4, 5, 9, 10, 12 and 13 of this Agreement shall continue in perpetuity.

 

(j)
Immediate Termination. Company may immediately terminate this
Agreement without triggering the Buy-Out Option: (1) if Consultant is
convicted of a felony or another crime involving material harm to the standing
or reputation of the Company; (2) for Consultant’s nonfeasance or willful
misconduct in the performance of Consultant’s duties for the Company; (3) for
conduct by Consultant which brings the Company into public disgrace or
disrepute, including, without limitation, dishonesty and fraud; or (4) if
Consultant shall have been continuously inattentive to Consultant’s duties
after written notice of the same.

 

2.                         Company Confidential
Information. Consultant agrees
and acknowledges that information and materials disclosed to or produced to
Consultant by Company in written, oral, magnetic, photographic, optical or
other form whether now existing or developed or created during the period
of Consultant’s employment or engagement with Company are proprietary to
Company and are highly sensitive in nature and “Confidential Information” means
any proprietary information (including, without limit, patents, copyrights,
trade secrets, trademarks, service marks, and the like), technical data, trade
secrets, methods, techniques, know-how of Company or its licensors and the
Inventions (as hereinafter defined), including, but not limited to, research,
product

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

3

 

Confidential
Treatment Requested

 

plans, products, services,
suppliers, employee lists and employees, customers lists and customers,
markets, software, developments, inventions, processes, formulas, technology,
designs, drawings, engineering, hardware configuration information, manufacturing
information and procedures, marketing, finances, budgets or other business
information disclosed either directly or indirectly. All materials or
information provided by Company to Consultant that Company deems to be
confidential shall be clearly marked “Confidential” in writing by Company.
Confidential Information does not include information which: (i) is known
to Consultant at the time of disclosure to Consultant by Company as evidenced
by Consultant’s written records, (ii) has become publicly known and made
generally available through no wrongful act of Consultant, or (iii) has
been rightfully received by Consultant from a third party who is authorized to
make such disclosure.

 

3.                         Consultant Obligations As To
Confidential Information. During
Consultant’s engagement by Company, Consultant will have access to the
Confidential Information and will occupy a position of trust and confidence
regarding Company’s affairs and business. Consultant agrees to take the
following steps to preserve the confidential and proprietary nature of the
Confidential Information:

 

(a) Non-Disclosure.
During and at all times after Consultant’s engagement with Company, except to
the extent specifically provided in this Agreement, Consultant shall: (i) not
use, disclose or otherwise permit any person or entity access to any of the
Confidential Information or any notes, compilations, analyses, studies,
interpretations or any other documents or other embodiment prepared by
Consultant that is comprised of or includes any portion of the Confidential
Information (“Notes”); (ii) only use the Confidential Information for the
benefit of the Company and not for any other person or entity whatsoever; (iii) not
copy or reproduce any Confidential Information without the express prior
written consent of the Company; (iv) not use the Confidential Information
to compete with or cause detriment to the Company; (v) not, either
directly or indirectly, or through a third party, copy or use the Confidential
Information, or a derivative thereof, to create any product that is
functionally, visually, or otherwise substantially similar to a work or product
or products of the Company, or to create a derivative thereof; (vi) not,
either directly or indirectly, or through a third party, reverse engineer, any of
the Confidential Information, (vii) not remove any copyright or
proprietary rights notice attached to or included in any Confidential
Information, and reproduce on each copy of the Confidential Information, or part thereof,
the same proprietary notices or legends which appear on the original copy of
the Confidential Information provided hereunder; and (viii) not disclose
the existence of or any provisions of this Agreement Consultant understands
that the Confidential Information is and shall remain the property of Company
and that Consultant is not allowed to sell, license or otherwise exploit any
products or services which embody in whole or in part any Confidential
Information.

 

(b) Prevent
Disclosure. Consultant will take all reasonable precautions to prevent
disclosure of the Confidential Information to unauthorized persons or entities.
Consultant shall immediately notify Company of any information which comes to
its attention which might indicate that there has been a loss of
confidentiality of the Confidential Information. In such event, Consultant
shall take all reasonable steps within Consultant’s power to limit the scope of
such loss of confidentiality.

 

(c) Abide
by Company’s Restrictions. Consultant will treat as confidential and
proprietary any third party information in accordance with Company’s reasonable
instructions to Consultant.

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

4

 

Confidential
Treatment Requested

 

(d) Return
All Materials. Upon termination of Consultant’s engagement with Company for
any reason whatsoever, or at any time Company may so request, Consultant
will deliver to Company any and all materials embodying any Confidential
Information, including, without limitation, any documentation, records,
listings, designs, Notes, notebooks, data, flowcharts, sketches, drawings, memoranda,
models, accounts, reference materials, samples, machine-readable media and
equipment and similar repositories of Confidential Information which in any way
relate to the Confidential Information including, without limitation, all
copies, summaries, records, descriptions, modifications, drawings or
adaptations of such materials, which Consultant may then possess or have
under its control. Concurrently with the return of the aforementioned
proprietary materials to Company, Consultant shall deliver to Company a
certificate of Consultant certifying that all such materials have been returned
to Company. All covenants and agreements of Consultant herein shall survive the
return of such materials. Consultant further agrees that upon termination of
this Agreement, Consultant shall not retain any document, data or other
material of any description containing any Confidential Information or
proprietary materials of Company.

 

(e) No
Solicitation by Consultant. During the period of Consultant’s engagement
and for twelve (12) months after such engagement is terminated, Consultant will
not directly or indirectly solicit any of Company’s employees for employment or
engagement with a person or entity involved in marketing products or services
competitive with Company.

 

(f) Additional
Restrictions on the Use of Confidential Information.

 

(i) Restriction.
Except as specifically provided for in this Agreement, Consultant agrees and
covenants that because of the confidential and sensitive nature of the
Confidential Information and because the use of, or even the appearance of the
use of, the Confidential Information in certain circumstances may cause
irreparable damage to Company and its reputation, or to customers of Company,
Consultant shall not at any time, directly or indirectly, through any
corporation or association in any business, enterprise or employment, develop,
apply, invent, or use the Confidential Information, or otherwise derive from
the Confidential Information a corresponding work, technology or product of any
kind, including, without limitation, a corresponding work product or technology
that is in any way similar to or competitive in the marketplace.

 

(ii) Scope.
The parties agree that the marketplace for the Company’s products and
technology and the geographic scope of Company’s use of the Confidential
Information, products, and Services are and shall be worldwide and therefore
the covenants restricting Consultant’s activities as provided in Section 3(f)(i) shall
apply to all cities, counties and countries in which Company is doing business
worldwide.

 

(iii) Judicial
Modification. The parties agree and stipulate that the agreements and
covenants contained in the preceding Sections 3(f)(i) and 3(f)(ii) are
fair and reasonable in light of all of the facts and circumstances of the
relationship between the parties; however, the parties are aware that in
certain circumstances courts have refused to enforce certain restrictions of
this type. Therefore, in furtherance of and not in derogation of the provision
of Sections 3(f)(i) and 3(f)(ii), the parties agree that in the event a
court should decline to enforce the provision of Section 3(f)(ii) or
3(f)(ii), then that Section or Sections shall be deemed to be modified to
restrict Consultant’s competition with Company to the maximum extent, in both time
and geography, which the court shall find enforceable; however, in no event
shall the provision of the

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

5

 

Confidential
Treatment Requested

 

preceding Section be
deemed to be more restrictive to Consultant than those already contained in
this Section 3(f).

 

(iv) Equitable
Relief. Consultant’s obligations contained in this Section 3(f) are
of a special and unique character which gives them a peculiar value to Company,
and Company cannot be reasonably or adequately compensated in damages in an
action at law in the event Consultant breaches such obligations. Consultant
therefore expressly agrees that, in addition to any other rights or remedies
Company may possess, Company shall be entitled to injunction or other
equitable relief in the form of preliminary and permanent injunctions,
without bond or other security unless required by law, in the event of any
actual or threatened breach of such obligations by Consultant.

 

4.                         Ideas And Inventions. Consultant agrees to promptly disclose to
Company all Consultant’s written work, ideas, concepts, know-how, techniques,
processes, methods, inventions, discoveries, developments, Work, innovations
and improvements conceived or made by Consultant, whether alone or with others,
during Consultant’s engagement with Company and during the one (1) year
period thereafter, and which either: (a) involve or are related to Company’s
actual or demonstrably anticipated research or development; (b) incorporate
or are based on, in whole or in part, any of the Confidential Information or
other Company ideas; (c) involve or are related to the concepts listed in Exhibit B
attached hereto; or (d) result from or in connection with the Services
(the foregoing collectively “Inventions”). For the sake of clarity and for
purposes of this Agreement, the term Inventions, as defined in this Section 4,
is distinct and different from the meaning of Other Inventions in Section 7
of this Agreement. For further clarity, Inventions shall be assigned in
accordance with this Section 4 and Other Inventions may be licensed
in accordance with Section 7. Consultant hereby agrees to license all
right title and interests in an to any and all Inventions including, without
limitation, all intellectual property rights, industrial property rights or
similar rights and the right to obtain such rights throughout the world.
Consultant agrees to provide all assistance reasonably requested by Company in
the preservation of its interests in the Inventions, such as by executing
documents, testifying, and all similar activity, such assistance to be provided
at Company’s expense. Consultant shall, at the expense of Company, assist
Company or its nominees to obtain patents for such Inventions in any countries
throughout the world. Such Inventions shall be the property of Company or its
nominees, whether patented or not. For the purposes of this Agreement, an
Invention is deemed to have been made during the term of Consultant’s
engagement if the Invention was conceived or first actually reduced to practice
during the term of such engagement.

 

5.                         Copyrights. Consultant agrees that any Work which is
eligible for copyright protection in the United States or elsewhere shall be a
work made for hire. If any such Work is deemed for any reason not to be a work
made for hire, Consultant assigns all right, title and interest in the
copyright in such Work, and all extensions and renewals thereof, to the
Company, and agrees to provide all assistance reasonably requested by Company
in the establishment, preservation and enforcement of its copyright in such
Work, such assistance to be provided at Company’s expense but without any
additional compensation to Consultant. Consultant agrees to waive all moral
rights relating to the Work developed or produced, including, without
limitation, any and all rights of identification of authorship and any and all
rights of approval, restriction or limitation on use or subsequent
modifications.

 

6.                         Conflicting Obligations And
Rights. Prior to commencing
any Work for Company, Consultant shall inform Company in writing of any
apparent or potential conflict between Consultant’s Work for Company and (a) any
obligations Consultant may have to preserve

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

6

 

Confidential
Treatment Requested

 

the confidentiality of the
proprietary information or materials of any other party, or (b) any rights
Consultant claims to any patents, copyrights, trade secrets, or other
discoveries, inventions, ideas, know-how, techniques, methods, processes or
other proprietary information or materials. Otherwise, Company may conclude
that no such conflict exists and Consultant agrees thereafter to make no such
claim against Company. Company shall receive such disclosures in confidence.
All such existing obligations and claims of Consultant, if any, as of the date of
this Agreement are listed on Exhibit A attached hereto. Nothing herein
shall constitute a transfer to Company of rights in any pre-existing invention
or intellectual property owned by Consultant or on which Consultant is an
inventor.

 

7.                         Right of First Refusal. As part of the consideration and as a
material inducement for Company entering into this Agreement, Company shall
have right of first refusal for the exclusive license of any and all inventions
of Consultant that are patentable, copyrightable, or otherwise protectable by
legal means in any jurisdiction throughout the world, developed or reduced to
practice by Consultant during the term of this Agreement but not in connection
with the Services and therefore not otherwise assigned to Company pursuant to Section 4
of this Agreement (“Other Invention”) for applications within Skin Healthcare
[***]

 

“Skin
Healthcare” is defined as any and all products or technologies which can be or
are applied to the surface of skin (topically) for an indirect or direct effect
on the skin or underlying tissues. Skin Healthcare shall also include any
systemic applications whereby a previous topical application has been licensed.
This would not apply to products or technologies involving direct application
to internal tissues such as oral care, cardiovascular or orthopedic implants.

 

(a) Feasibility
Plan and Evaluation Period. Within thirty (30) days of the date that
Consultant provides Company with written notice of the Other Invention, the
parties will in good faith negotiate, and Consultant shall not unreasonably
withhold agreement, and agree upon a feasibility plan and a time table for
carrying out such feasibility plan for the Other Invention (“Feasibility Plan”),
which will include the necessary preclinical, proof of concept clinical and
manufacturing feasibility studies, in order to evaluate the commercial value of
such patents or other legally protectable right and each related product. Consultant
agrees to cooperate and provide reasonable assistance in preparing the Feasibility
Plan and provide company all technical information and know-how related to the
Other Invention. All information generated during the Feasibility Plan shall be
owned by the Company and subject to the terms of confidentially herein. As part of
Company’s right of first refusal, Company shall have a minimum of six (6) months
or longer as reasonably required by the feasibility plan time table to evaluate
the Other Invention (“Evaluation Period”), commencing from the date of the
mutually signed and agreed upon Feasibility Plan. Upon Company’s written
request, the Evaluation Period may be extended as reasonably necessary to
determine the feasibility of the product and accomplish the goals of the
Feasibility Plan.

 

(b) Option.
At the end of the Evaluation Period, including any extension thereof, Company may exercise
its option (each an “Option”) by providing affirmative notification in writing
of the exercise of its Option to the Other Invention. Upon Company’s exercise
of an Option and with respect to the Other Invention evaluated, Consultant
agrees to grant, subject to the royalty provisions of Section 8, below, an
exclusive (even as to Consultant), worldwide license and right to use,
research, develop, make or have made, modify or have modified, distribute or
have distributed, import or have imported, sell, license and otherwise exploit
the Other Invention including, without

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

7

 

Confidential
Treatment Requested

 

limitation, any and all
intellectual property rights therein throughout the world and the patent(s) and
any products which fall under the patent(s) (“Licensed Rights”) to Company.
Company shall not have the right to sublicense or transfer said license without
the prior written approval of Consultant, which approval shall not be
unreasonably withheld. For the purposes of this agreement, a change in control
of the company, whether through merger with another entity, or the acquisition
of or by another company, shall not constitute a sublicense or transfer of said
license, and shall not require written approval of Consultant. As requested
Consultant shall provide to Company all intellectual property related to the
Other Invention and Licensed Rights including, without limitation, all
know-how, ideas, notes, analysis, descriptions, formulas, methods and any
tangible embodiments thereof (regardless of the form or format). In the
event Company does not exercise the Option to obtain, after the expiration of
the Evaluation Period, or extension thereof, the Licensed Rights, Consultant
shall be free to pursue any other third party relationship with respect
thereto.

 

(c) Patent
Prosecution. Consultant agrees to, at its expense, prosecute, or cause to
be prosecuted to allowance or final rejection, and reasonably maintain, in the
United States and such other countries as Company may request from time to
time, the patents and patent applications (or other similar rights throughout
the world however called) Consultant in its sole discretion deems appropriate
related to the Other Invention (“Other Invention Patent”). During the
Evaluation Period Consultant shall notify Company in writing regarding all
actions related to the Other Invention Patents and Company and Consultant shall
discuss and mutually agree on the various activities and responses related
thereto. Consultant shall reasonably pursue each such Other Invention Patent
application to allowance. In the event Company exercises its Option with
respect to any Other Invention, then Company shall at that point assume the
expense of filing, prosecuting and maintaining any patent applications or
patents relating to the Other Invention for which the Option was exercised
After exercise of an Option relating to an Other Invention, Company shall pay
all government fees required to obtain and keep in force any and all Other
Invention Patents and applications therefor and shall submit evidence to
Consultant that said government fees have been timely paid. In the event that
Company decides not to prosecute, not to pay a government fee due on, or
otherwise to abandon, any Other Invention Patent or application therefor within
the in any country in which it is required to do so, Company shall send
Consultant written notice of said decision at least ninety (90) days in advance
of the action or payment due date. If Company decides not to prosecute, not to
pay a government fee due on, or otherwise to abandon, a Other Invention Patent
or application therefor in any country in which it is required to do so,
Consultant shall have the option to take over such Other Invention Patents. If Consultant
takes over such Other Invention Patent pursuant to the foregoing sentence,
Consultant shall in its sole discretion thereafter be responsible for paying
the costs and expenses associated with prosecuting and maintaining such Other
Invention Patent or application therefor. As set forth in Section 8,
below, Company’s obligation to pay royalties may be reduced, but is not
relieved by the absence of an issued patent in any particular country.

 

(d) Product
Development Plan. Commencing on the date that Company exercises an Option
and Consultant licenses the Licensed Rights, a product development plan (“Product
Development Plan”) with estimated costs and timelines will be completed within
sixty (60) days by Company for the development and commercialization of each
product. Subject to the R&D Chargeback, Company agrees to solely bear the
full cost and responsibility for all evaluation expenses, product development,
clinical assessments, commercial preparation, patent protection and related patent
expenses, consulting costs.

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

8

 

Confidential
Treatment Requested

 

8.                         Royalty. As consideration for the Licensed Rights,
Company will pay a royalty for the successful commercialization of products
developed or identified by Consultant within the scope of this Agreement as
follows:

 

(a) Products
developed or licensed by Company. For new products sold by Company based on
the Licensed Rights pursuant to this Agreement, Company will pay royalties as
follows:

 

(i) Developed, marketed and sold by Company. Where Company
develops, markets and sells new products based on the Licensed Rights, Company
will pay a tiered royalty based on annual Net Sales, with the maximum royalty
paid per product, capped at $5.0 million per year. Such royalty will be in
effect with the date of first commercial product sale of each resulting new
Company product. The tiered royalty payable by Company for each new product
shall be 3% on annual Net Sales from $0.00 - $50,000,000.00; 4% on annual Net
Sales from $50,000,000.01 to $74,999,999; and 5% on annual Net Sales above $75,000,000.

 

“Net
Sales” shall mean gross payments
received by OMP from the sale of new products subject to the Licensed Rights
actually sold less discounts, allowances, rebates, cash discounts, returns,
samples, bad debt, sales and excise taxes, other consumption taxes, customs
duties, shipping costs, handling costs, insurance costs, chargebacks and other
amounts paid on sale or distribution.

 

(ii) R&D
Chargeback. The parties agree that [***] of the research and development
expenses incurred by Company in the development of each of the products under
this Agreement shall be credited against future royalty payments (“R&D
Chargeback”) as set forth in this section. The amount of the R&D Chargeback
shall include development expenses paid to Consultant for Services in
connection with the Licensed Product. For purposes of clarification no
marketing, advertising, selling and or other associated expenses shall be
included in the R&D Chargeback.

 

The R&D Chargeback which will be credited against all future
royalty payments shall be applied at a rate of [***] of the royalty until the
R&D chargeback is completely repatriated. At no time shall the R&D
chargeback exceed [***] of any one royalty payment.

 

In the event a patent does not issue from the US Patent and Trademark
Office on a product in which the Company has exercised its option, with
substantially the same protection as filed, the applicable royalty at the time
patent rejection notification is received by the Company, shall be reduced by [***]
effective immediately and shall continue at [***] of the otherwise obligated
royalty payment for as long as the product is exclusively sold by Company. In
the event there is direct competition, and Company wishes to sell said products
non-exclusively, the Licensed Rights granted herein and any royalty obligations
for that product shall terminate and Consultant may enter into any
non-exclusive relationship with Company or any third party to make, distribute,
market or sell competitive products. For the purpose of this section, “competitive
product” shall mean a product that performs substantially the same function,
for substantially the same indication, in substantially the same manner, and in
Company's reasonable judgment has the potential to violate the Licensed Rights.

 

(iii) Company
Out-Sourced License. For all Licensed Rights that Company successfully
licenses to third parties related to sales and distribution, and for which
Company receives a only a license fee or royalty, Company will pay a royalty payment
to Consultant equal to

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

9

 

Confidential
Treatment Requested

 

[***] of the Net Royalty (“Net Royalty” shall mean gross royalty
actually paid minus costs of the licensing, including licensing fees and
expenses, costs of managing the relationship, payment flows, audits, and
general overhead) received by Company, for the license to the Assigned Patent
capped at a maximum payment of [***] million per year for the life of such
patents. To clarify, this provision does not apply to distributors generally but
only where the only compensation received by Company is a royalty.

 

(iv) The parties agree that [***] of the
research and development expenses incurred by Company in the procurement of the
Company Out-Sourced License under this Agreement shall be credited against
future royalty payments (“R&D Chargeback”) as set forth in this
section. The amount of the R&D Chargeback shall include expenses paid to
Consultant for Services in connection with procurement of the Company
Out-Sourced License. For purposes of clarification no marketing, advertising,
selling and or other associated expenses shall be included in the R&D
Chargeback. The R&D Chargeback which will be credited against all future
royalty payments shall be applied at a rate of [***] of the royalty until the
R&D chargeback is completely repatriated. At no time shall the R&D
chargeback exceed [***] of any one royalty payment.

 

(v) Non-related uses: For any Licensed Rights for which
Consultant has commercial opportunities which are not related to: (i) Skin
Healthcare; (ii) dermatology, aesthetic procedures, and/or plastic
surgery, the respective patent; (iii) any indication or use of a then
current or planned Company product; or (iv) not within the then current
scope of business of Company or Company product roadmap, and provided that
Company agrees in writing that such commercial opportunity qualifies as a
non-related use according to the foregoing (signed by the then current
president or CEO of Company), then Company shall grant back to Consultant a
limited license under its exclusive Licensed Rights, in form and substance
reasonably acceptable to Company (including, without limitation, liability
limits for Company, monitoring rights of Company, indemnification of Company,
and representations and warranties of Consultant) that provides that Consultant
shall have the right to a free, perpetual, exclusive license to such
intellectual property but only for the pursuit of such specific non-related
commercial use as are mutually agreed in writing. Consultant shall pursue any
such commercialization at its own cost and to its own benefit and Company shall
have no obligation to provide any financial support to patent prosecution or
protection for said patents and or products.

 

(b) Third party patented products and licensing services.

 

If and to the extent that Consultant identifies a third party patent or
patent application licensing opportunity and assists Company in negotiations
and other activities that lead to a third party license and successful
commercialization of a new product, Company will pay Consultant a [***] royalty
on the Net Sales of such new Company products for the life of the third party
license.

 

In the event the third party's patent application becomes irrevocably
abandoned and cannot possibly issue or there is no possibility that a third
party patent will ever issue with claims that read on a product marketed by
Company, the applicable royalty payable to Consultant at that time shall be
reduced by [***] and shall continue at [***] of the otherwise obligated royalty
payment for the life of the third party license.

 

9.                         Solicitation And Consultant
Restrictions. In
consideration of the disclosure of Confidential Information of Company to
Consultant, Consultant agrees that, during Consultant’s engagement and for a
period of two (2) years following the end of Consultant’s engagement to

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

10

 

Confidential
Treatment Requested

 

perform the Services,
Consultant will not directly or indirectly (through a family member or any
other person acting on their behalf, or otherwise); (i) be involved,
directly or indirectly in the development of a product that is substantially
similar to the Service or and Company product, or (ii) act as an officer,
director, employee, consultant, shareholder, lender, or agent of any entity
which is engaged in any business of the same or substantially similar nature
as, or in competition with, the business in which Company is now engaged or in
which Company becomes engaged during the term of Consultant’s engagement. The
foregoing restrictions are deemed reasonable by Consultant since Consultant
agrees that the inadvertent use of Confidential Information in such
circumstances would be inevitable. Notwithstanding the foregoing, if Consultant
can prove to Company’s reasonable satisfaction that none of Company’s
Confidential Information will be used, then the above restriction will not
apply.

 

10.                  Remedies and Enforcement. No remedy conferred on Company by any of
the specific provisions of this Agreement is intended to be exclusive of any
other remedy, and each and every remedy shall be cumulative and shall be in
addition to every other remedy given or now or later existing at law or in
equity or by statute or otherwise. The election of one or more remedies by
Company or Consultant shall not constitute a waiver of the right to pursue
other available remedies. The failure of Company to promptly institute legal
action upon any breach of this Agreement shall not constitute a waiver of that
or any other breach hereof.

 

11.                  Consultant Warranties. Consultant warrants that: (a) Consultant’s
agreement to perform the Services does not violate any agreement or
obligation between Consultant and any third party; (b) the Work as
delivered to Company does not known or suspected to infringe any copyright,
patent, trade secret or any other proprietary right held by any third party; (c) Consultant
has obtained all necessary licenses, permits and other requisite authorizations
and has taken all actions required by applicable laws or governmental
regulations in connection with its business
as now conducted; (e) Consultant has the right, without the consent of any
other person or entity, to enter into this Agreement and assign rights as set
forth herein, grant the Option and the Licensed Rights; and (c) Consultant
has not assigned and/or granted licenses to any intellectual property covered
by this Agreement including, without limitation, the Work, Inventions, Other
Inventions, Other Invention Patents or Licensed Rights to any other person or
entity that would restrict the rights granted hereunder. Without limiting the
foregoing, Consultant specifically represents and warrants to Company that
Consultant’s performance of all the terms of this Agreement does not and will
not knowingly breach any agreement to keep in confidence proprietary
information or trade secrets acquired by Consultant in confidence or in trust
prior to its engagement by Company, and Consultant will not disclose to
Company, or induce Company to use, any confidential or proprietary information
or material belonging to others. Consultant agrees not to enter into any
agreement, either written or oral, in conflict with this Agreement.

 

12.                  Indemnification.

 

(a) Indemnification
by Consultant. Consultant shall, at its own expense, defend, indemnify and
hold harmless Company and its employees, officers, directors, licensees and
agents from and against any and all liabilities, claims, actions, losses, costs
and expenses (including, without limitation, reasonable attorneys’ fees and
disbursements) relating to or arising out of (i) allegations that any
intellectual property covered by this Agreement including, without limitation,
the Work, Inventions, Other Inventions, Other Invention Patents or Licensed
Rights (or any portions thereof), or the use thereof, or the exercise of any of
the rights granted to Company under this Agreement, intentionally infringes
upon or misappropriates the rights of any third party; or (ii) Consultant’s
actual or alleged: (a) intentional infringement of any United States or
foreign patent,

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

11

 

Confidential
Treatment Requested

 

foreign letters patent,
license, trademark, copyright, trade secret or any other proprietary right; (b) breach
of this Agreement, any other agreement or the inaccuracy of any Consultant
representation herein; (c) violation of any law, statute, ordinance,
order, rule or regulation; or (d) act or omission in connection with
the performance of any of the Services called for by this Agreement, or any
gross negligence or intentional misconduct in connection with such performance
at Consultant’s facility.

 

(b) Indemnification
by Company. Company shall, at its own expense, defend, indemnify and hold
harmless Consultant from and against any and all liabilities, claims, actions,
losses, costs and expenses (including, without limitation, reasonable attorneys’
fees and disbursements) relating to or arising out of Company’s actual or
alleged gross negligence or intentional misconduct in connection with the
performance of its obligations under this Agreement the development, sale or
use of any product under this Agreement by or on behalf of Company.

 

13.                  Limit of Liability. NOTWITHSTANDING ANYTHING ELSE IN THIS
AGREEMENT OR OTHERWISE, NEITHER CONSULTANT NOR COMPANY WILL BE LIABLE WITH
RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE,
STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY INCIDENTAL,
SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES. THE FOREGOING LIMITATION DOES NOT
APPLY TO CONSULTANT’S OBLIGATIONS OF CONFIDENTIALITY UNDER SECTIONS 2 AND 3 OR
INDEMNITY UNDER SECTION 12.

 

14.                  Independent Contractor. Consultant is an independent contractor of
Company. Consultant understands and agrees that Consultant shall not be
considered as having employee status with Company and Consultant will not participate
in any plans, arrangements, or distributions by Company pertaining to or in
connection with any pension, stock, bonus, profit-sharing, or other benefit
program Company may have for its employees. Consultant has no authority to
act on behalf of or to enter into any contract, incur any liability or make any
representation on behalf of Company.

 

15.                  Miscellaneous Provisions.

 

(a) Assignment
and Delegation. Company’s rights under this Agreement shall be assignable,
and its duties may be delegated. Consultant’s rights under this Agreement
shall not be assignable nor shall Consultant’s duties be delegated without the
prior written consent of Company which consent shall not be unreasonably
withheld. For the purposes of this agreement, a change in control of the
Consultant, whether through merger with another entity, or the acquisition of
or by another company, shall not constitute a sublicense or transfer of said
license, and shall not require written approval of the Company so long as the
primary owner of Consultant on the date this agreement is executed shall remain
an active principle of the surviving entity. Nothing contained in this
Agreement, expressed or implied, is intended to confer upon any person or
entity other than the parties and their successors in interest and permitted
assignees, any rights or remedies resulting from this Agreement unless so
stated to the contrary.

 

(b) Prior
Disclosures. The parties agree this Agreement shall apply to any
Confidential Information that may have been provided to Consultant by
Company, prior to the Effective Date hereof.

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

12

 

Confidential
Treatment Requested

 

(c) Severability.
This Agreement is intended to be valid and enforceable in accordance with its
terms to the fullest extent permitted by law. If any provision of this
Agreement is held to be void, invalid, unenforceable or inoperative, by any
court of competent jurisdiction, such event shall not affect the validity or
enforceability of any and all other provisions hereof, which shall continue and
remain in full force and effect as though such void, invalid, unenforceable or
inoperative provision had not been a part of this Agreement.

 

(d) Notice.
All notices, requests, demands and other communications shall be in writing and
shall be deemed to have been duly given if delivered or if mailed, to the
parties at the addresses indicated below their respective signatures on the
last page hereof (or at such other address as shall be given in writing by
either party to the other) by United States certified or registered mail,
prepaid, return receipt requested.

 

(e) Successors
and Assigns. All covenants, representations, warranties and agreements of
the parties contained herein shall be binding upon and inure to the benefit of
their respective successors and permitted assigns.

 

(f) Amendments.
This Agreement shall not be modified, amended, changed, supplemented or in any
way altered, nor may any obligations hereunder be waived or extensions of
time for performance granted, except by an instrument in writing signed by duly
authorized agents of Company and Consultant.

 

(g) Counterparts.
This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

 

(h) Entire
and Sole Agreement. This Agreement constitutes the entire understanding and
final expression of the agreement between the parties regarding the subject
matter of this Agreement and supersedes any and all prior or contemporaneous
oral or written communications regarding it, all of which are merged herein and
may not be contradicted by evidence of any prior or contemporaneous
agreement. Each of the Exhibits and Schedules referred to in this Agreement is
incorporated into this Agreement by this reference. The parties further intend
that this Agreement constitutes the complete and exclusive statement of its
terms and that no extrinsic evidence whatsoever may be introduced in any
judicial proceeding, if any, involving this Agreement.

 

(i) Survival.
The confidentiality obligation set forth herein shall survive any termination
or expiration of this Agreement.

 

(j)
Governing Law. This Agreement shall be governed, construed and
interpreted in accordance with the laws of the State of Delaware excluding the
choice-of-law provisions of such laws, the Uniform Commercial Code on the
Sale of Goods, and the United Nations Convention on Contracts for the
International Sale of Goods. In the event a judicial proceeding is necessary,
the sole forum for resolving disputes arising under or relating to this
Agreement are the state and/or federal courts of Delaware, and the parties
hereby consent to the jurisdiction of such courts, and that venue shall be
proper in such courts.

 

(k)
Attorneys Fees. In the event any declaratory or other legal or equitable
action is instituted between any of the parties in connection with this
Agreement, then, as between the parties hereto, the prevailing party shall be
entitled to recover from the losing party all of its costs,

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

13

 

Confidential
Treatment Requested

 

fees and expenses,
including, without limitation, court costs and reasonable attorneys’ fees (“Costs”).
In addition, without limitation, should any judgment be enforced or collected
relating to any dispute regarding this Agreement, the prevailing party shall be
entitled to all of its Costs reasonably necessary to enforce or collect such
judgment. The “prevailing party” means the party determined by the court to
have most nearly prevailed, even if such party did not prevail in all matters,
not necessarily the one in whose favor a judgment is rendered. Further, in the
event of any default by a party under this Agreement, such defaulting party
shall pay all the expenses and attorneys’ fees incurred by the other party in
connection with such default, whether or not any litigation is commenced.

 

(l)
Covenant Not to Bring Claims. Consultant agrees and covenants not to
bring any claim against Company for any infringement of Consultant’s rights for
any use or exploitation by Company of any of the Inventions, Other Invention,
Work or products for which the Company affirmatively exercised its rights to
license.

 

(m)
Waivers and Extensions. Waivers or extensions may be given or
withheld in the sole and absolute discretion of the party who is requested to
grant the waiver or extension, but to make such a waiver effective it must be
made in writing. No waiver of any breach of any agreement or provision herein
contained shall be deemed a waiver of any preceding or succeeding breach
thereof or of any other agreement or provision herein contained. No extension
of time for performance of any obligations or acts shall be deemed an extension
of the time for performance of any other obligations or acts.

 

[Signature Page Follows]

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

14

 

Confidential
Treatment Requested

 

WHEREFORE,
by their signature below, the parties acknowledge that they have reviewed
carefully what has been expressed in this document, which they understand is a
legally binding document, and that the understandings and agreements expressed
in this document are binding upon them.

 

	
   

  	
   

  	
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OBAGI
  MEDICAL PRODUCTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
  /s/ STEVE CARLSON

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
  STEVE CARLSON

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  PRESIDENT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  310 Golden Shore, Suite 100,

  
	
   

  	
   

  	
   

  	
  Long Beach, CA 90802

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONSULTANT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JOSE
  RAMIREZ

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
  /s/ Jose E Ramirez

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
  Jose E Ramirez

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  18 Fox Court 

  
	
   

  	
   

  	
   

  	
  Trumbull, CT 06611

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JR CHEM
  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
  /s/ Jose E Ramirez

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
  Jose E Ramirez

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Owner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  116 A Research Drive

  
	
   

  	
   

  	
   

  	
  Milford, CT 06460

  

 

SIGNATURE PAGE

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

 

 

EXHIBIT A

 

 

Existing
conflicting obligations of confidentiality to third parties:

 

Existing claims
to proprietary rights:

 

Phoenix
Brands, Stamford Connecticut, Household Products Development

 

Grant
Industries (Manufacturer for Este Lauder), Cosmetic Aloe and Herbal Blends

 

Carruba
Industries (Cosmetic herbal extracts for Avon Products and Pfizer)

 

Regulatory
Affairs (Analgesic Development)

 

	
   

  	
  /s/ Jose E. Rameriz

  
	
   

  	
  (“Consultant”)
  Jose E. Rameriz

  
	
   

  	
  Date:

  	
  7/18/05

  

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

Exhibit A-1

 

EXHIBIT B

 

1.             [***]

 

2.             [***]

 

3.             [***]

 

4.             Elastin regeneration products

 

5.             Obagi Pre/Post Procedure therapies

 

6.             Obagi Maintenance Systems

 

7.             [***]

 

8.             [***]

 

9.             [***]

 

10.          [***]

 

THE SYMBOL
[***] IS USED TO INDICATE THAT A PORTION OF THE EXHIBIT HAS BEEN OMITTED AND
FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTION.

 

Exhibit B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]