Document:

EX-10.1

 Exhibit 10.1 

[PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIALITY UNDER RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED. THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT THAT HAVE BEEN OMITTED ARE MARKED WITH “[***].” A COPY OF THIS EXHIBIT WITH ALL SECTIONS INTACT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

 AMENDED AND RESTATED FIAGON NA DISTRIBUTOR AGREEMENT 

AGREEMENT effective June 23, 2016 (the “Effective Date”) by and between 

Fiagon NA Corporation, a Delaware corporation, with offices at 3913 Todd Lane #101 Austin TX, 78744 (“Fiagon NA” or
“Fiagon”) 
 and 

Entellus Medical, Inc., a Delaware corporation, with offices at 3600 Holly Lane North, Suite 40, Plymouth, Minnesota 55447
(“Distributor” or “Entellus”). 
 RECITALS: 

WHEREAS, Fiagon owns the right to sell Fiagon® surgical navigation systems in
North America and to appoint distributors to implement that right; and 
 WHEREAS, Distributor is an experienced distributor
of medical products, including products which require FDA approval; and 
 WHEREAS, the parties entered into a distributor
agreement dated August 10, 2015 (the “Prior Agreement”) setting forth the terms of the arrangement by which Distributor purchases and re-sells certain Fiagon® surgical
navigation systems to those certain customers in the Territory (as defined in Exhibit B); and 
 WHEREAS, the parties desire to
hereby amend and restate the Prior Agreement in its entirety to expand their distribution relationship; 
 NOW, THEREFORE, in
consideration of the above, and the terms and covenants set forth below, the parties agree to hereby amend and restate the Prior Agreement in its entirety as follows: 

1. Appointment of Distributor. Subject to the terms hereof: 

a. Fiagon appoints Distributor as: 

i) the exclusive distributor of the Fiagon® branded products
identified on the attached Exhibit A (the “Products”) to ENT physicians in offices, clinics, and surgery centers (excluding hospitals) located in the Territory (as defined in Exhibit B); and 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  

 ii) the exclusive distributor of the Products to hospitals located in the
Territory; 
 iii) Entellus shall have the right to bid on and participate in all ENT healthcare system contracts (e.g. with
managed care groups) for the sale of Products in the Territory, provided, however, that if the system contract includes [***], Fiagon shall decide, in its sole discretion, whether or not to bid on or participate in such contract and Fiagon shall
handle and fully control such contract or bid thereon. 
 The aforementioned distribution rights described in i) and ii) above are, as of the
Effective Date, subject to certain limitations due to the distribution rights of other third distributors granted by Fiagon prior to the Effective Date. Specifically, the third party distributors listed in Exhibit G may, as of the Effective Date,
continue to sell Fiagon branded products to the ENT accounts specifically mentioned in Exhibit G. Distributor agrees it will not sell Fiagon branded products into the accounts specified in Exhibit G until after [***], unless Fiagon approves in
writing at an earlier date of such sales by Distributor. 
 b. Fiagon hereby warrants that 

i) Exhibit G provides a complete list of all third party distributors that have, as of the Effective Date, the right to
distribute Fiagon branded products to ENT physicians in the offices, clinics, and surgery centers located within the Territory and that the distributors listed in Exhibit G do not, as of the Effective Date, have the right to sell Fiagon branded
products to any ENT physicians in the office, clinic or surgical center settings within the Territory other than the accounts specifically listed in Exhibit G; 

ii) it will not grant the right to such distributors to distribute (a) Products to ENT physicians in the offices, clinics,
and surgery centers or (b) Fiagon GuideWires that are attached to or sold in combination and conjunction with the Entellus balloon to hospitals, located within the Territory in any extension or renewal (including automatic renewals) of any of
the distribution agreements set forth in Exhibit G and will terminate those other distribution agreements set forth in Exhibit G that it cannot amend in accordance with this Section 1 at its first opportunity, without breaching any contracts or
otherwise engaging in any prohibited or tortious conduct; 
 iii) it will not enter into any agreements with any third
parties that would allow another party to distribute Products to ENT physicians in hospitals, offices, clinics, or surgery centers unless it has exercised its right to replace all or part of the respective exclusive distribution rights granted to
Distributor in Sections 1(a)(i) or (ii) in favor of a non-exclusive distribution right in accordance with Section A.5(i) or B.4(i) of Exhibit E; and 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
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 iv) during the Term of this Agreement, Fiagon will not collaborate with or
support the competitors of Distributor, including [***], or any company intending to develop or commercialize products that are competitive with the Products or Entellus balloon products in the Territory. For the sake of clarity, the foregoing
sentence shall not prevent Fiagon from any collaboration with or support of competitors of Distributor with regard to any products outside the Territory, or non-competitive products within the Territory. 

c. Distributor agrees not to sell Products outside the Territory unless it has first obtained the written permission of Fiagon.
Furthermore, Distributor agrees that it will not appoint sub distributors or otherwise cause the Products to be sold inside or outside the Territory by non-employees unless it has first obtained the express written consent of Fiagon, which consent
can be granted or withheld at Fiagon’s sole discretion. Distributor shall not sell any Products to any third party if Distributor knows or reasonably believes that such third party would re-sell such Products outside the Territory, to an
unauthorized reseller, or to an unauthorized customer, however, Entellus shall have the right to sell the Products to a third-party financing company in connection with providing end-users located within the Territory with financing of Products and
the Parties understand that Entellus has no control or obligations hereunder to police the third-party financing company’s use or disposal of such Products, provided that Entellus shall instruct such third-party financing companies that it
shall not sell such Products outside the Territory. Distributor can sell to any customers within the Territory, even if those customers maintain facilities outside of the Territory, provided that the Products sold to such inter-territorial customers
by Distributor are to be consumed within the Territory. Any questions or disputes that arise with regard to which customers are within which territories, shall be submitted to, and resolved by Fiagon at its sole and complete discretion. Inquiries or
purchase requests that come to Distributor from potential customers outside its Territory shall be referred to Fiagon’s distributor in the territory in which the potential customer is located. Distributor shall adhere to the terms of any Fiagon
published distributor policies that relate to Product promotions, marketing and sales initiatives that may have impact outside of a distributor’s territory. 

2. Fiagon’s Obligations. During the Term of this Agreement, Fiagon agrees: 

a. That Fiagon will sell the Products to Distributor at Distributor Pricing (as defined below) for resale by Distributor in
accordance with the terms and conditions of this Agreement and all exhibits and attachments. The current Distributor Pricing for the Products is described in Exhibit C attached hereto. Once per contract year, Fiagon NA may modify its
Distributor Pricing by providing to Distributor no less than thirty (30) days prior written notice of that modification(s), however, Fiagon NA may not modify the pricing of any Products sold to Distributor pursuant to customer agreements under
which pricing has been previously agreed upon. For the sake of clarity, Fiagon NA may still modify the pricing of Products that are only promised to be sold in the future; 

b. To provide, when reasonably requested by Distributor, copies of such technical data, brochures and promotional and
advertising material, as may be produced from time to time by Fiagon NA. Fiagon NA reserves the right to charge Distributor an 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
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amount not to exceed Fiagon NA’s actually incurred materials costs for such brochures, promotional, and advertising material; 

c. To cause Fiagon NA employees to meet from time to time with customers and potential customers in the Territory, especially
key opinion leaders, to build relationships, obtain clinical information, and support the efforts of Distributor; 
 d. To
forward to Distributor leads obtained by Fiagon NA of potential customers in the Territory; 
 e. To create a program for
providing technical updates, product training, market information, and other distributor support; 
 f. To enable Distributor
to acquire, at favorable pricing or terms, Products that will be solely used to demonstrate functionality and features to potential customers; 

g. To provide Product repair services to Distributor; 

h. To address warranty issues that cannot be handled in the field by Distributor; 

i. To attend at Fiagon’s expense, from time to time, meetings, conferences, and other industry activities to try to
establish a national or regional recognition of the Products, and provide to Distributor, when possible, the opportunity to also attend such meetings, conferences and activities at Distributor’s expense; 

j. To develop and from time to time update distributor policies and procedures to deal in a dynamic fashion with situations
that arise in connection with the efforts of Fiagon NA and its distributors to effectively market and sell the Products; 

k. That Fiagon NA and Distributor will promptly communicate to each other any customer complaints or adverse events, including
those that require an MDR. Fiagon NA is required to investigate and provides a remedy to complaints and adverse events in cooperation with Entellus. Fiagon NA is responsible for filing all MDRs (medical device reports); 

l. That Fiagon NA is responsible for reporting any product recall to Distributor and will be responsible for all costs
associated with the recall; 
 m. That Fiagon NA will obtain and maintain all clearances to market the product in the
Territory including regulatory approvals; 
 n. Throughout the term of this Agreement, including any sell-off period in
accordance with Section 8.f hereof, obtain and maintain at its own cost and expense, from a qualified insurance company, commercial general liability insurance, for the entire Territory, naming Distributor as an additional named insured. Such
insurance policy shall include blanket contractual liability, products liability and operations liability. The amount of coverage shall be a minimum of Five Million U.S. Dollars ($5,000,000.00) 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
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(combined single limit) for each single occurrence. Such policy or policies shall provide for thirty (30) days’ written notice to Distributor from the insurer in the event of any
cancellation or termination of the policy and shall endeavor to notify Distributor in the event of a modification of the policy. Fiagon shall, upon written request, provide Distributor with proof that such insurance is in force; 

o. To upgrade all of Entellus’ trial and demonstration IGS System units to include [***] within thirty (30) business
days of the Effective Date; 
 p. To train a select group of Entellus employees on Fiagon’s premium IGS System within
thirty (30) days of the Effective Date; 
 q. To support Entellus’ hospital sales efforts with training and
installation support in cooperation with Entellus for the first [***] following the Effective Date, after which Entellus is expected to be able to handle training and installation without Fiagon’s support; and 

r. To comply with the obligations contained in Exhibit H. 

3. Distributor Obligations. Distributor hereby accepts the rights and obligations of a Fiagon NA distributor pursuant to this Agreement
and agrees that, so long as this Agreement is in effect, it will: 
 a. Promote, demonstrate and sell Products using best
efforts with a view to generating increased sale of Products pursuant to this Agreement. Distributor agrees to provide detailed sales activity reporting to Fiagon NA with the frequency and content established in Fiagon NA’s standard dealer
policies and to similarly report on Product usage and other information requested by Fiagon NA as part of its marketing efforts; 

b. Maintain well-trained and informed sales, marketing and technical personnel. Within the schedule attached as
Exhibit D, Distributor will appoint a member(s) of its staff to become the Fiagon® systems subject matter expert(s) in order to support the efforts of Distributor’s sales
personnel. Distributor will provide the resources reasonably necessary to enable its personnel to competently present and support the Products to potential customers. Until subject matter excellence is achieved by Distributor, it shall, for major
sales opportunities, be entitled to request sales assistance from Fiagon NA. Distributor will provide Fiagon NA with sufficient notice of such presentations to make necessary arrangements. Fiagon NA shall be entitled to test the specified Fiagon® subject matter experts to assess whether Distributor has complied with this obligation; 

c. Maintain a sufficient inventory of Products to ensure prompt delivery of customers when orders are placed; 

d. Deliver Products with the original unaltered labeling and logos to customers in Fiagon® packaging and with the instructions and materials provided by the manufacturer; 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
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 e. Pay for the Products at the prices and upon the terms and conditions set forth
in this Agreement (including exhibits and attachments) or otherwise established by Fiagon NA; 
 f. Provide technical support
services to purchasers of Products in the Territory, including “first line” evaluation or treatment of warranty issues; 

g. Make no representations or warranties of Product performance beyond the written representations made by Fiagon in its
advertising or otherwise make false or misleading representations or warranties concerning the Products; 
 h. Promptly and
accurately comply with all FDA and other reporting requirements relating to the experiences with use of the Products in the fashion directed by Fiagon NA’s policies including, without limitation, reports of material malfunctions, death or
disability required under 21 CFR § 803; 
 i. Provide to Fiagon NA quarterly estimates of Distributor’s
anticipated purchases per month during the up-coming 12 months in the manner described in Fiagon NA’s applicable policies and promptly notify Fiagon NA if Distributor anticipates a material departure from its estimates for the upcoming
period(s). A failure to accurately forecast purchases shall not constitute a breach of this Agreement but may affect the timing of delivery of Products ordered by Distributor; 

j. Aspire to purchase the dollar value of Products that are prescribed in the Performance Standards attached hereto as
Exhibit E; 
 k. Comply with all laws or regulations applicable to it or to its activity of purchasing Products
from Fiagon NA and marketing and reselling Products in the Territory; 
 l. Refrain from marketing or selling any
image-guided surgery navigation system products that are substitutes for the Products or any other products that directly compete with the Products. The Parties understand that a product does not “directly compete” with a Product if it
performs the same function in a materially different way. For example, a tool used to confirm the location of a surgical instrument by endoscopic visualization or by transdermal illumination does not “directly compete” with an IGS system
that confirms the location of the instrument by computer-assisted extrapolation of the instruments position; 
 m. Upon
request, cooperate with Fiagon NA employees in connection with marketing, sales, and Product support initiatives of Fiagon NA directed to customers and potential customers in the Territory; 

n. Throughout the term of this Agreement, including any sell-off period in accordance with Section 8.f hereof, obtain and
maintain at its own cost and expense, from a qualified insurance company, commercial general liability insurance, for the entire Territory, naming Fiagon as an additional named insured; such insurance shall include

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
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blanket contractual lability, operations liability, advertising injury, and cross lability with an amount of coverage of at least $5,000,000 per occurrence and products liability insurance with
an amount of coverage of at least $10,000,000 per occurrence; such insurance amounts may be met via a combination of primary and umbrella policies; such policy or policies shall provide for thirty (30) days’ written notice to Fiagon from
the insurer in the event of any cancellation or termination of the policy and shall endeavor to notify Fiagon in the event of a modification of the policy; Distributor shall, upon written request, provide Fiagon with proof that such insurance is in
force; 
 o. Adhere to all policies and procedures published by Fiagon NA for implementation of its distributor
relationships, unless such policies and procedures violate any terms of this Agreement; 
 p. To market Fiagon’s premium
IGS System as the preferred system for hospital customers, provided that Entellus shall retain the right to sell any Fiagon basic IGS system to its hospital customers; and 

q. To comply with the obligations contained in Exhibit H. 

4. Use of Trademarks and Trade Names. Nothing in this Agreement shall be read as transferring ownership in any intellectual property
belonging to any party. Fiagon NA grants Distributor limited permission during the Term of this Agreement to use the trademarks and trade names of Fiagon and solely to (i) designate the source of a Product; (ii) identify Distributor as an
authorized distributor of Fiagon NA or the Products, and (iii) subject to the limitation set forth below, promote, market and sell Products in the Territory. Distributor’s use of the trademarks and trade names of Fiagon and Fiagon NA must
comply with any reasonable usage guidelines provided in writing by Fiagon NA to Distributor. Distributor is required to secure prior written approval from Fiagon NA before using the Fiagon®
trademarks or Fiagon or Fiagon NA trade names on any advertising or promotional material. If, in Fiagon NA’s sole opinion, any proposed material contains a matter which may lessen the value of such trademark, Distributor agrees to delete or
modify such matter to the satisfaction of Fiagon NA prior to printing, distribution or use of such material. Distributor shall have the right to incorporate Entellus trademarks and tradenames in marketing materials alongside the trademarks and trade
names of Fiagon. Fiagon agrees it will secure Distributor’s prior written approval before distributing any marketing materials that includes Distributor’s trademarks and trade names. 

5. Confidential Information and Trade Secrets, Non-Disparagement and Injunctive Relief. 

a. Confidential Information and Trade Secrets. The parties acknowledge and agree that as a result of the relationship
established by this Agreement, they may obtain access to Confidential Information of the others. “Confidential Information” means any information disclosed by either Fiagon or the Distributor (each a “Disclosing Party”) to the
other party (each a “Recipient”) which relate directly or indirectly to the Disclosing Party’s products, services or business and which is disclosed in tangible or electronic form and clearly marked as “confidential” or
“proprietary” or bears a similar designation, is disclosed orally or otherwise in intangible form and identified as confidential at the 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
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time of disclosure followed within 30 days of disclosure by a written transmission containing a summary of the disclosed information and confirming its confidential or proprietary nature, and/or
should reasonably be understood to be confidential or proprietary given the nature of the disclosed information and/or the circumstances surrounding disclosure. Confidential Information may include technology, ideas, concepts, drawings, designs,
inventions, discoveries, improvements, patents, patent applications, specifications, trade secrets, prototypes, processes, notes, memoranda and reports, or visual representations concerning the Disclosing Party’s past, present or future
research, technology, know-how, and concepts, or computer programs, software code, written documentation, products, information concerning vendors, members, customers, prospective customers, employees and prospective employees, market research,
sales and marketing plans, distribution arrangements, financial statements, financial information, financing strategies and opportunities and business plans. A Recipient shall keep Confidential Information of the Disclosing Party confidential and
shall not disclose it to any unaffiliated third party or use it for any purpose other than to exercise its rights and fulfill its obligations under this Agreement without the prior written consent of the Disclosing Party. The Recipient agrees to
preserve the confidentiality of such information with at least the same degree of care as that taken by the Recipient to preserve and protect its own confidential or proprietary information, and in no case less than a reasonable degree of care. The
Recipient shall not be obligated to maintain any information in confidence, if: the information was lawfully in the Recipient’s possession or was known to it prior to its disclosure from the Disclosing Party as evidenced by written records; the
information is, at the time of disclosure, or thereafter becomes public knowledge without the fault of the Recipient; the information is or becomes rightfully available on an unrestricted basis to the Recipient from a source other than the
Disclosing Party which did not acquire the same under an obligation of confidentiality to the Disclosing Party; or the information becomes available on an unrestricted basis to a third party from the Disclosing Party or from someone acting under its
control. Further, the Recipient may disclose the Disclosing Party’s Confidential Information if and to the extent disclosure is required by subpoena or pursuant to a demand by any governmental authority, provided, however, that before such
disclosure, the Recipient shall, to the extent permitted, notify the Disclosing Party of its intent to do so, and give the Disclosing Party reasonable opportunity to take action to protect its rights and interest in such information. If a
governmental authority requires disclosure of Confidential Information, then the Recipient may only furnish that portion of the Confidential Information that is reasonably required. Neither party shall disclose the terms of this Agreement to an
unaffiliated third party without the prior written approval of the other party, except for legal, financial, accounting, or other similar advisors who have a need to know any of such terms and agrees to keep them confidential. The parties shall have
the right to disclose the terms of this Agreement to current shareholders and in connection with bona fide fund raising or sale of stock, provided that such disclosure is no broader than necessary to satisfy such purpose and is made under a
confidentiality agreement including substantially similar confidentiality terms as provided herein. 
 b.
Non-Disparagement. The parties shall not, directly or indirectly, during the Term of this Agreement or at any time thereafter, do or refrain from doing anything that 

  

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may untruthfully disparage the reputation, prestige, value, image or impression of their respective trademarks or any other intellectual property of the party, the other party, the Products, or
any of the other party’s officers, directors, affiliates, personnel, products, brands, or related companies, by words, actions or other communications, or by any omissions to speak, act or otherwise communicate, or in any other manner
whatsoever. 
 c. The parties understand and acknowledge that any breach of Section 5a or 5b or certain other breaches
hereof may cause the non-breaching party irreparable harm, the amount of which may be difficult to ascertain, and therefore agrees that notwithstanding the provisions of Section 14 hereof, the non-breaching party shall have the right to apply
to a court of competent jurisdiction for specific performance and/or an order restraining and enjoining any such further breach and for such other relief as the non-breaching party shall deem appropriate without the necessity of demonstrating actual
damages and without having to post security in any form. Such right of the non-breaching party is to be in addition to the remedies otherwise available to the non-breaching party at law or in equity. The breaching party hereby expressly waives the
defense that a remedy in damages will be adequate and any requirement in an action for specific performance or injunction for the posting of a bond by the non-breaching party. 

6. Terms and Conditions of Sale. No order for Products is deemed made until accepted by Fiagon NA. The Terms and Conditions of Sale
attached as Exhibit F, as modified from time to time by Fiagon NA upon reasonable notice to Distributor, shall govern all such orders. Distributor acknowledges that these Terms and Conditions supersede any terms and conditions on any
purchase order or other document supplied by Distributor to Fiagon NA. The parties shall separately establish, and Fiagon NA may from time to time review and modify, the credit terms, if any, granted by Fiagon NA to Distributor. 

7. Warranty and Limitation on Remedies; Disclaimer. 

a. Fiagon agrees to pass on to customers the warranties provided by Fiagon on the Products. The term “customer,” as
used herein, means the first end-user customer that purchases the Products and not any subsequent purchaser or user. Fiagon warrants that the Products will be free from defects in material and workmanship under normal use and service with proper
maintenance for eighteen (18) months. The term for such warranties shall begin upon receipt of a Product by the Distributor’s customers. In the event that Distributor has received a Product from Fiagon more than 180 days prior to its
shipment to the customer (the “Excess Period”), Distributor shall reimburse and indemnify Fiagon for all costs and expenses from warranty claims that occur within the time period equal to the Excess Period before the end of the eighteen
(18) months warranty period. For example, if Distributor ships a Product to a customer after holding it in its inventory for 181 days, then the Distributor shall reimburse and indemnify for any warranty claims that arise on the last day of the
18 month warranty period. In the event that Distributor uses the Product itself for demo or other purposes, it the term of the warranty to Distributor shall begin upon Distributor’s receipt of the Product. Products used by Distributor for
demonstration or other purposes may not be sold to customers or any other third parties without Fiagon’s express written consent. Distributor and customers shall promptly notify Fiagon of any known warranty claims and shall

  

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cooperate in the investigation of such claims. If any Product is proven to not conform with this warranty during the applicable warranty period, Fiagon shall, at its exclusive option, either:
repair, replace the Products, or refund the purchase price paid by Distributor for each non-conforming Product, within a reasonable time after written notification of the non-conformity and return of the Product to Fiagon NA. Fiagon shall have
no obligation under the warranty set forth above if the customer fails to notify Fiagon in writing during the warranty period of a non-conformity. 

b. Any modification by Distributor or a customer of the Products or any use, misuse or neglect thereof by the customer in a
manner inconsistent with the specifications or directions for use or maintenance of the Product shall void the warranty protection provided by Fiagon. Fiagon shall NOT be held liable or assume any responsibility for products damaged by improper
installation, handling or maintenance. 
 c. Fiagon’s obligation in the event of a breach of warranty is limited to the
remedies set forth in this Section 7. THE LIMITED WARRANTY SET FORTH ABOVE, OR ANY SUCCESSOR WARRANTY, IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WHICH ARE HEREBY DISCLAIMED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. 
 d. In no event, be it for breach of warranty, breach of
contract, negligence or any other cause of action shall Fiagon be liable to Distributor or any customer for lost profits or special, consequential, incidental or punitive damages even if such damages were reasonably foreseeable. 

e. Fiagon’s warranty and responsibility are limited to the Fiagon Products itself. Fiagon takes no responsibility for any
direct or indirect cost, losses or damages however incurred. 
 f. Returns must be accompanied by a return authorization
number (RMA) obtained from Fiagon Technical Support, and prepaid postage and insurance. 
 g. Fiagon products returned to
Fiagon with an RMA will be completed within 1-2 weeks of receipt of the product by Fiagon. 
 h. Fiagon reserves the right to
make changes or improvements in design or manufacturing without assuming any obligation to change or improve products previously manufactured. 

i. Fiagon does not make nor does it give the authority to any employee, agent or representative of Fiagon to make any other
warranties, or implied warranties, or to waive, alter, vary or add to the terms hereof without the prior written approval of an officer of Fiagon. 

8. Term and Termination. 

  

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 a. Unless sooner terminated by mutual agreement or because of an uncured breach
hereof, the initial term of this Agreement begins on the Effective Date and will continue until August 9, 2020 (“Initial Term”). The Agreement will automatically renew in successive 24 month periods thereafter unless either party
provides to the other party written notice of non-renewal at least 365 days prior to the end of the then-current term. The Initial Term and all renewal terms constitute the “Term” of this Agreement. 

b. This Agreement may be terminated on at least thirty (30) days prior written notice by either of the parties in the
event of a material breach by the other party of its obligations under this Agreement, provided the party intending to terminate the Agreement under this section provides the other party a detailed description of the claimed breach in the notice and
the breach remains uncured at the conclusion of the 30-day notice period. Notwithstanding anything to the contrary set forth above, either party may terminate this Agreement immediately upon written notice to the other if that other party
(i) engages in any act which materially impairs the goodwill associated with the Products or the trademarks of the terminating party; (ii) violates the provisions of Section 5 of this Agreement, (iii) ceases active operation of
its business, or (iv) engages in any materially unlawful conduct involving the manufacture, sale or distribution of the Products, whether such is subject to governmental action or not. 

c. Fiagon may terminate the Distribution Agreement on at least thirty (30) days prior written notice in the event the
Distributor does not meet the performance standards specified in Section A(1) of Exhibit E. 
 d. Fiagon may terminate
the distribution rights to hospitals granted to Distributor in Section 1(a)(ii) upon thirty (30) days’ written notice in the event the Distributor does not meet the performance standards for sales to hospitals specified in Section
B(1) of Exhibit E. For the avoidance of doubt, such termination shall not terminate or otherwise affect the distribution rights to ENT physicians in offices, clinics, and surgery centers (excluding hospitals) located in the Territory granted
to Distributor in Section 1(a)(i). In addition, upon termination in accordance with this Section 8.d, Entellus shall retain the exclusive right to distribute Fiagon Guide Wires that are attached to or sold in combination and conjunction
with Entellus balloons to hospitals in the Territory during the Term of this Agreement. 
 e. This Agreement shall
automatically terminate if (i) a party files a bankruptcy petition or is the subject of an involuntary bankruptcy petition which is not dismissed within thirty (30) days, becomes insolvent, is subject to an arrangement with creditors, or
has a receiver or trustee appointed for its assets, or (ii) Fiagon NA is unable to continue to import Fiagon® surgical navigation systems. 

f. Upon termination or non-renewal of this Agreement, Distributor will immediately cease to represent itself as an authorized
distributor of Fiagon or the Products, will immediately cease all use of trademarks or trade names of Fiagon, and will take all action reasonably possible to cause the removal of trademarks and trade names from all signs, directories, business
cards, sales literature, advertisements and any other places where Distributor has used these valuable assets; provided that unless this 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
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Agreement is terminated for Distributor’s breach or Fiagon NA exercises its repurchase option under Section 8.g below, Distributor may, for a period of three (3) months from the
termination date, continue to sell such remaining inventory of Products bearing Fiagon® trademarks on a non-exclusive basis as Distributor may have on the effective date of termination, so
long as Distributor complies with the terms and conditions of this Agreement and all applicable laws. 
 g. Upon termination
or non-renewal, Fiagon NA may, in its sole discretion, repurchase from Distributor all or any part of Distributor’s inventory of new, currently-supported Products that are in saleable condition at original purchase price from Fiagon NA. 

h. Distributor shall assist Fiagon and/or its designee in any reasonable manner, including the granting of access to offices of
Distributor at any reasonable time, in order to effect the smooth transition of the distribution to a different distributor and to ensure the continuity of the business of Fiagon and/or its designee after termination of this Agreement. 

i. Not later than thirty (30) days after the termination or expiration of this Agreement, Distributor shall render
adequate and final accountings to Fiagon with respect to any transaction as to which it has not yet rendered an accounting. 

j. In the event of termination or non-renewal of this Agreement for any reason, neither party shall owe any compensation to the
other party for lost profits, lost opportunities, goodwill, nor any other loss or damage as a result of or arising from such termination. Distributor acknowledges that it has not paid any consideration for the right to act as Fiagon’s
distributor in the Territory. 
 k. Termination of this Agreement for any reason shall not terminate those provisions which
by their terms are intended to be on-going including, without limitation, Sections 5, 7, 8, 11 and 14 hereof or any right to payment for Products. 

9. Relationship of the Parties. The parties are independent contractors and the relationship established between Fiagon and Distributor
by this Agreement is that of a supplier to its distributor. Distributor shall be solely responsible for all costs incurred by Distributor in connection with sale of the Products, including facility, employee, travel, tax and employee costs, except
that Fiagon shall be solely responsible for all taxes typically assessed on the manufacturer or importer of the Products (including the Medical Device Excise Tax). Distributor shall be entitled to price the Products as it sees fit. While Fiagon has
an interest in the ultimate result of Distributor’s sales efforts, it shall not dictate the specific manner in which Distributor conducts its day-to-day affairs. Distributor is not an agent, partner, joint venturer or franchisee of Fiagon.
Distributor has no authority to bind Fiagon, transact any business in Fiagon’s name or on its behalf in any manner, or make any promises or representations on behalf of Fiagon. The employees and agents of Distributor are not for any purpose the
employees or agents of Fiagon, nor are employees and agents of Fiagon the employees or agents of Distributor for any purpose. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 12 

 10. Force Majeure. Neither party will be liable for any failure to perform its obligations
under this Agreement, if due to any cause beyond the reasonable control of the non-performing party including, without limitation, natural disasters, war, strikes, import restrictions, or legal or regulatory prohibitions. 

11. Indemnification. 

a. Distributor will indemnify, defend, and hold Fiagon and its parents, affiliates and their respective officers, directors and
representatives (collectively, “Fiagon Indemnitees”) harmless from any claims, costs, suits or damages (including reasonable attorneys’ fees and court costs) made or brought against Fiagon as a result of a breach by Distributor of any
of the terms of this Agreement. 
 b. Fiagon will indemnify, defend, and hold Distributor and its parents, affiliates and
their respective officers, directors and representatives (collectively, “Distributor Indemnitees”) harmless from any claims, costs, suits or damages (including reasonable attorneys’ fees and court costs) made or brought against
Distributor as a result of a breach by Fiagon of any of the terms of this Agreement. 
 c. The Parties hereby agree that they
will cooperate in the defense of any [***] claims brought against them based on the sale or use of the Products within the Territory. It is the Parties intent that the costs of such claims shall be borne by the Party whose products gave rise to the
claims. Towards that end, Entellus and Fiagon agree that: 
 i) Fiagon shall indemnify, defend, and hold Distributor
Indemnitees harmless from any costs or damages (including reasonable attorneys’ fees and court costs) arising from a claim that a product [***]. 

ii) Distributor shall indemnify, defend, and hold Fiagon Indemnitees harmless from any costs or damages (including reasonable
attorneys’ fees and court costs) arising from a claim that a product [***]. 
 iii) For any [***], then the Parties
agree to indemnify, defend, and hold the other harmless from the portion of any costs or damages (including reasonable attorneys’ fees and court costs) that are attributable to [***]. That is, Fiagon shall indemnify Distributor for [***].
Distributor and Fiagon agree they will share equally any costs or damages (including reasonable attorneys’ fees and court costs) that are not reasonably apportionable to [***]. 

d. A party seeking indemnification (an “Indemnified Party”) shall give the other party (an “Indemnifying
Party”) written notice of any third party claims covered by Section 11.a, 11.b, or 11c above within ten (10) days of first knowledge thereof. The Indemnifying Party shall have sole and exclusive control of the defense of any legal
action, including the choice and direction of legal counsel, and the Indemnified Party shall fully cooperate in the defense thereof. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 13 

 12. Assignment. This Agreement will inure to the benefit of and be binding upon the
permitted successors and assigns of the parties hereto. Distributor may not assign or transfer this Agreement or any right or obligation arising under it to any other party without the prior written consent of Fiagon NA, which consent shall not be
unreasonably denied if the proposed assignee establishes the intent and wherewithal to fulfill the Distributor’s duties hereunder to the satisfaction of Fiagon. A merger, sale of a majority of the legal or beneficial interests in the shares of
the Distributor or a sale of substantially all the assets shall be deemed an assignment. 
 13. Fiagon shall provide Distributor at least ten
(10) days written notice before Fiagon begins any process to merge with a third party, sell a majority of the legal or beneficial interest in the shares of Fiagon or to sell substantially all of its assets to any third party. 

14. Notices. All notices must be in writing and will be deemed to have been given (i) when delivered in person, delivered by
internationally-recognized overnight courier or (ii) two (2) days after delivery by facsimile transmission or email if a copy of the facsimile or email is placed in the mail the same day, addressed to such party as set forth below or as
may hereafter be specified in writing in accordance with this Section 13: 
  

					
		  	Fiagon NA:	  	 Fiagon NA
 3913 Todd Lane #101

Austin, TX 78744
 Facsimile: +49 3302 201 21 15

Email: info@fiagon.com

			
		  	Distributor:	  	 Entellus Medical
 Chief Executive Officer

3600 Holly Lane North, Suite 40
 Plymouth, MN 55447

Facsimile: 763-463-1599
 Email:
bwhite@entellusmedical.com

 15. Forum Selection; Controlling Law. This Agreement is deemed to have been made in the State of New
York, USA and shall be governed by and interpreted pursuant to New York law. Any disputes arising out of this Agreement or the relationship of the parties hereto shall be litigated exclusively in the state or federal courts of the State of New York,
USA. All parties consent to the jurisdiction of New York courts and waive any defense of forum-non-conveniens. This Agreement shall not be subject to the United Nations Convention for the International Sale of Goods. 

16. Attorneys’ Fees. The prevailing party shall be entitled to recovery of costs, including reasonable attorneys’ fees, in any
legal action brought in connection with this Agreement. 
 17. Entire Agreement. This Agreement, including the Exhibits attached
hereto, amends and restates the Prior Agreement in its entirety and represents the entire understanding of 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 14 

 
the parties with respect to its subject matter. It incorporates all prior negotiations, representations, and understandings, whether written or oral, with regard to the relationship between
Fiagon and Distributor. No supplement, modification, or other change may be made to any of the terms of this Agreement unless contained in a written document signed by both parties. 

18. Counterparts and Faxed Signatures. This Agreement may be executed in any number of counterparts by the parties hereto or in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which together shall constitute one and the same Agreement. A faxed or emailed signature shall be sufficient to bind a party hereto. 

19. Authority. Each party represents that it has the authority to enter into this Agreement and that it constitutes a binding commitment
of the party. 
 20. The parties acknowledge having required that this Agreement, as well as all notices and documents related
thereto, be drafted in English and that the English language shall control. Les parties aux présenter reconnaissent avoir exigé que la présente convention, ainsi que tout avis et document s’y rapport, soient
rédigés en langue anglaise.  
 IN WITNESS WHEREOF, the undersigned have set their hands, intending
to be bound hereby, as of the Effective Date. 
  

			
	FIAGON NA CORPORATION
		
	By:	 	 /s/ Timo Krueger

	Name: Dr. Timo Krueger
	Title: Vice-President
	
	ENTELLUS MEDICAL, INC.:
		
	By:	 	 /s/ Robert S. White

	Name: Robert S. White
	Title: President and Chief Executive Officer

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 15 

 EXHIBIT A 

PRODUCTS 
 Distributor will be
entitled to purchase from Fiagon NA the following surgical navigation systems and components, parts and ancillary products related thereto, including future upgrades and additions to the product line related to Ear Nose & Throat but, for
the sake of clarity, excluding [***] products (“Products”). Fiagon reserves the right to upgrade, modify and supplement its Products: 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 1 

 

 
 Fiagon - North America ENT - Product List fiagonPremium ENT / CMF System (US) Fiagon Basic Sinus System (US) Unit, field generator,
cables, and software for sinus, ear, fusion, and CMF surgery (Unit, field generator, cables, and adaptors for basic sinus surgery)Software E01 4001 Ear Navigation Software E014002 Fusion Navigation Software E01 4003 Plastic Recon Navigation Software
Demo only (FDA pending} A 011401 iPad Remote Control ModuleInstruments E 01 2002 E 01 2004 EOl 2300 E 01 2104 E 01 21D3 E 01 2102 E 01 2 IDG E 01 2900 E 01 2901 EOl 2902 E 01 2911 TBD Registration EOl 2003 EOl 2200 EOl 2201 EOl 2202 EOl 3000 E 00
3001 Accessories A DO 1200 A 00 1201 A 011203 A 00 9100 A 00 9101 A 00 9102 Cables A 21 9200 A DO 9201 A DO 9202 A DO 9203 A DO 9204 A DO 9207 A 00 920S Demo E 01 9301 faff instruments are lOx reusable) Pointers FlexPointer 2.8 mm FlexPointer 15 mm
FiraePo inter Sactions FlexTube 3 mm PonterTube Sinus Frontalis PotnterTube Stammberger F)exTube4 mm Adaptors PomterSheJI 4 mm PointerSheH 5 mm PoarvterShell 3 mm Guidewires Giadewire 0.8 mm Single Use XprESS LoPro Compatible Guide Wire
RegistrationPointer (reusable) Localizer Headband (reusable) Demo only [FDA pending) Localizer Bone screw (reusable) Localizer Adheswe Pad (reusable) Headbands (pack of 10 pcs.) Adhesive Pads (pack of 10 pcs.) Extension cable instruments Extension
Cable Localizer Double Instrument support (Y-caWe) Foot Switch PC Mouse service Keyboard Power Cable US DVI Monitor Cable 5-video cable VGA Monitor Cable Monitor Control Cable HD Mi Monitor Cable Composite-Video Cable Sinus Phantom Head for Demo
fiagon na / Pecan Business Park / 3913 Todd Lane Ste 9101 / Austin TX, 787442 [***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential
treatment. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 2 

 EXHIBIT B 

TERRITORY 
 Unless hereafter
modified by mutual written agreement or as a condition of renewal of the Term, Distributor’s Territory consists of the following geographical area: 

Territory includes the continental United States of America, Hawaii, Alaska, Puerto Rico, the U.S. Virgin Islands, and any other territories or possessions
held by the United States of America as of the Effective Date and Canada. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 1 

 EXHIBIT C 

INITIAL DISTRIBUTOR PRICING 
 The
current Distributor Pricing (also referred to herein as the “Transfer Price” or “Transfer Pricing”) for the Products is either described below or in a price list that will be delivered to Distributor: 

[***] 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 1 

 EXHIBIT D 

REQUIREMENTS FOR ACQUIRING AND 

MAINTAINING EXPERTISE IN CAPABILITIES, 

USE AND SUPPORT OF FIAGON® PRODUCTS 

The following are the mutually agreed expectations with regard to the development and maintenance by Distributor of internal expertise on Fiagon® Products so as to be able to support the efforts of other Distributor employees in the sales and support of the Products: 

Fiagon agrees to work with Distributor to develop future products in joint effort. [***].  

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  

 EXHIBIT E 

INITIAL PERFORMANCE STANDARDS 

A: Performance Standards for distribution to ENT physicians in offices, clinics, and surgery centers (excluding hospitals) located in the Territory
pursuant to Section 1(a)(i) 
  

	 	1.	Unless otherwise agreed, Distributor is expected to purchase no less than the following dollar volume (or, if applicable, type and number) of Products during the following time “Periods” (as defined below)
solely for distribution to ENT physicians in offices, clinics, and surgery centers (excluding hospitals) located in the Territory pursuant to Section 1(a)(i) hereof: 

 

	 	a.	“Period 1” (i.e., Effective Date – August 9, 2016): [***] Fiagon Navigation Systems, provided that Fiagon Navigation Systems purchased under the Prior Agreement shall count towards the [***] Fiagon
Navigation Systems expected to be purchased during this Period 1. 

  

	 	b.	“Period 2” (i.e., August 10, 2016 – August 9, 2017): [***] Fiagon Navigation Systems 

  

	 	c.	“Period 3” (i.e., August 10, 2017 – August 9, 2018): [***] Fiagon Navigation Systems 

  

	 	d.	“Period 4” (i.e., August 10, 2018 – August 9, 2019): [***] Fiagon Navigation Systems 

  

	 	e.	“Period 5” (i.e., August 10, 2019 – August 9, 2020): [***] Fiagon Navigation Systems 

  

	 	2.	During the Term of this Agreement, Distributor is expected to purchase [***] of disposable and accessory items (not counting service contract revenue) during each of the first five 12-month periods following the order
of a Fiagon Navigation System by Entellus, including orders under the Prior Agreement, for a total of [***] in disposable and accessory items over the course of five years (including the time between the Effective Date of the Prior Agreement and
this Agreement) for each ordered Fiagon Navigation System. 

  

	 	3.	Should the Distributor’s Product purchases exceed the above-prescribed Product purchase expectations for one of the prescribed Periods, then those surplus purchases shall be applied towards the purchase
expectations of subsequent Periods. 

  

	 	4.	 Should Distributor fail to meet the performance standards prescribed in Section A of this Exhibit E, then
Fiagon’s sole remedy hereunder shall be: i) an option in its sole discretion to immediately replace all or part of the exclusive distribution rights granted to 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 E1 

	 	
Distributor in Section 1(a)(i) in favor of a non-exclusive distribution right or ii) terminate this Agreement per the terms in Section 8c. 

B: Performance Standards solely for distribution to hospitals located in the Territory pursuant to Section 1(a)(ii) hereof 

 

	 	1.	Unless otherwise agreed, Distributor is expected to purchase from Fiagon and sell to customers no less than the following number of Fiagon Navigation Systems during the following time periods solely for distribution to
hospitals located in the Territory pursuant to Section 1(a)(ii) hereof: 

  

	 	a.	Effective Date – December 31, 2016: [***] Fiagon Navigation Systems 

  

	 	b.	January 1, 2017 – August 9, 2017: [***] Fiagon Navigation Systems 

  

	 	c.	August 10, 2017 – August 9, 2018: [***] Fiagon Navigation Systems 

  

	 	d.	August 10, 2018 – August 9, 2019: [***] Fiagon Navigation Systems 

  

	 	e.	August 10, 2019 – August 9, 2020: [***] Fiagon Navigation Systems 

 2.
Distributor is expected to purchase at least [***] of disposable and accessory items (not counting service contract revenue) at the time of the purchase of each Fiagon Navigation System from Fiagon. Further, Distributor is expected to
purchase [***] of disposable and accessory items (not counting service contract revenue) during the second and each subsequent 12-month period following the purchase of each Fiagon Navigation System by Entellus.  

3. Should the Distributor’s Product purchases exceed the above-prescribed Product purchase expectations for one of the time periods set
forth in Section B.1(a) through (e) of this Exhibit E, then those surplus purchases shall be applied towards the purchase expectations of subsequent periods. 

4. Should Distributor fail to meet the performance standards prescribed in Section B of this Exhibit E, then Fiagon’s sole remedy
hereunder shall be: i) an option in its sole discretion to immediately replace all or part of the exclusive distribution rights to hospitals granted to Distributor in Section 1(a)(ii) in favor of a non-exclusive distribution right or ii)
terminate the distribution rights to hospitals granted to Distributor in Section 1(a)(ii) entirely upon thirty (30) days’ written notice in accordance with Section 8.d of the Agreement. Notwithstanding anything to the contrary in
this Agreement, Entellus shall retain the exclusive right to distribute Fiagon Guide Wires that are attached to or sold in combination and conjunction with Entellus balloons to hospitals in the Territory during the Term of this Agreement. 

C: Forecasts 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 E2 

	 	1.	The Distributor shall provide Fiagon more detailed and specific forecasts of its expected purchases in accordance with Section 3 of the Agreement, but such forecasts shall respect the system purchase expectations
set forth in Sections A and B of this Exhibit E. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  
 E3 

 EXHIBIT F 

STANDARD TERMS AND CONDITIONS 

FOR SALES OF PRODUCTS 

5. Orders. Distributor will place orders for Products in the manner described in Fiagon NA’s distributor policies and procedures.
No order is deemed placed until accepted in writing by Fiagon NA. The terms of the Distributor Agreement shall apply to all orders. Fiagon NA will make good faith efforts to fulfill orders by the estimated ship date established at the time the order
was placed but that date is an estimate and Fiagon NA cannot guarantee that it will be met. Furthermore, if Distributor’s order volume materially departs from its forecast volume, fulfillment of some of Distributor’s orders may have to be
delayed in order to enable Fiagon NA to fill orders of distributors whose order volumes are consistent with their forecasts. 
 6.
Delivery. Unless otherwise agreed in writing, each purchase is FOB Fiagon NA’s facility in Austin, Texas, USA. Distributor is solely responsible for causing the Products to be delivered to the location requested in the accepted order.
All risks of loss or damage during transport from Fiagon NA’s facility to Distributor rest with Distributor. Distributor should promptly inspect the Products upon receipt. If Fiagon NA is not informed of any non-conformity with
Distributor’s order within ten (10) calendar days of receipt, the Products contained in that delivered order are deemed to have been accepted by Distributor. 

7. Taxes. Distributor is exclusively responsible for, and shall pay all sales, use, or other taxes or duties related to the sales of
Products to Distributor or to the delivery of the Products into Distributor’s territory, while Fiagon is exclusively responsible for, and shall pay, all taxes levied on manufacturers or importers of the Products including the Medical Device
Excise Tax. 
 8. Payment Terms; Title. Payment terms on the Products shall be Net 30. Distributor shall not be entitled to withhold
any payment due to Fiagon by way of set-off or counter-claim. Fiagon NA is authorized to file financing statements to provide notice that it retains an interest in Products for which Distributor has not paid in full. If Distributor fails to pay for
Products within the time provided in its credit arrangement with Fiagon NA, is the subject of a voluntary or involuntary bankruptcy petition, or is reasonably deemed to be insolvent, Fiagon NA shall be entitled to secure possession of the Products
for which it is still owed money and Distributor shall cooperate in the delivery of that possession. 
 9. Late Payment. Unless
otherwise provided in a credit agreement between the parties, Fiagon NA shall be entitled to apply finance charges at the rate of 1.5% per month on the overdue balance or such lower rate as may be required by law. Distributor shall pay all
costs, including reasonable attorneys’ fees, incurred by Fiagon NA in any litigation to collect what is owed to it. 
 10.
Warranty. Distributor, and Distributor’s customers, shall receive the warranty applicable to the Products purchased from Fiagon NA as set forth in Section 7 of the Distributor Agreement. The limitation of liability provisions of the
Distributor Agreement apply to all Product orders. 
 11. Force Majeure. As provided in the Distributor Agreement, Fiagon NA is not
responsible for any delays caused by acts of God, war, strikes, computer failure, or other actions beyond its reasonable control. 
 12.
Exclusive Terms. These Standard Terms and Conditions, along with the Distributor Agreement, contain the exclusive agreement with respect to all orders for, and sales of Products and controls over any purported terms to which Fiagon NA has not
agreed in writing. 
 13. Forum Selection. Any dispute arising from, or relating to a Product order or shipment shall be exclusively
resolved in the federal and state courts of the State of New York, USA, and both parties consent to the jurisdiction of such courts. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  

 Exhibit G 

List of the other distribution agreements that grant a third person or entity rights to distribute a Fiagon branded product to ENT physicians in offices,
clinics, and surgery centers located within the Territory and the dates that such distribution rights are reasonably projected to expire: 
  

	 	1.	[***] shall have the right to sell Fiagon branded products to the following three ENT accounts: 

[***] 
 [***] 

[***] 
  

	 	2.	[***] shall have the right to sell Fiagon branded products to [***]. 

  

	 	3.	[***] shall have the right to sell Fiagon branded products to the following four ENT accounts: 

[***] 
 [***] 

[***] 
 [***] 

Fiagon warrants that these limited distribution rights for these other distributors shall expire no later than [***]. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

  

 Exhibit H 

Compliance with Certain Laws. 
 The Parties acknowledge
that Products and other materials made available to the Distributor by Fiagon hereunder may be subject to the Government of Canada’s export control list or other applicable laws of Canada related to the export of technical data, equipment and
products. The Parties agree to comply with all applicable laws in connection with the distribution of the Products. The Parties also agree that they will each comply with the requirements of the Corruption of Foreign Public Officials Act
(Canada) as well as The Foreign Corrupt Practices Act (US). 
 Distributor further warrants and covenants to Fiagon that: 

 

	 	(a)	Distributor, its affiliates, and its and their respective principals, officers, directors, employees, agents, consultants, and joint venture partners, and any other party acting on behalf of Distributor, have not and
shall not offer, promise, provide, or accept any item of value (broadly meaning any monetary payment, such as fees or commissions, or nonmonetary benefit, such as employment opportunities, gifts, travel or entertainment), directly or indirectly, to
or from any person in exchange for a business advantage; and 

  

	 	(b)	Distributor and its affiliates (i) are in compliance in all material respects with all applicable laws relating to anti-money laundering, and (ii) are not and have not been part of any proceedings (nor is any
such proceeding pending or threatened) with respect to any such laws. 

 Fiagon further warrants and covenants to Distributor that: 

 

	 	(a)	Fiagon, its affiliates, and its and their respective principals, officers, directors, employees, agents, consultants, and joint venture partners, and any other party acting on behalf of Fiagon, have not and shall not
offer, promise, provide, or accept any item of value (broadly meaning any monetary payment, such as fees or commissions, or nonmonetary benefit, such as employment opportunities, gifts, travel or entertainment), directly or indirectly, to or from
any person in exchange for a business advantage; and 

  

	 	(b)	Fiagon and its affiliates (i) are in compliance in all material respects with all applicable laws relating to anti-money laundering, and (ii) are not and have not been part of any proceedings (nor is any such
proceeding pending or threatened) with respect to any such laws. 

  

	[***]	Indicates portions of this exhibit that have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.Exhibit 10.1

 

TRANSITION SERVICES AGREEMENT

 

BY AND BETWEEN

 

JOHNSON CONTROLS PLC

 

AND

 

ADIENT PLC

 

DATED AS OF [·], 2016

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I   DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.01.
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   SERVICES
    	
5
    
	
 
    	
 
    	
 
    
	
Section 2.01.
    	
Services
    	
5
    
	
Section   2.02.
    	
Performance of Services
    	
6
    
	
Section 2.03.
    	
Charges for Services
    	
8
    
	
Section 2.04.
    	
Reimbursement for   Out-of-Pocket Costs and Expenses
    	
9
    
	
Section 2.05.
    	
Changes in the   Performance of Services
    	
9
    
	
Section 2.06.
    	
Transitional Nature of   Services
    	
9
    
	
Section 2.07.
    	
Subcontracting
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE III   OTHER ARRANGEMENTS
    	
10
    
	
 
    	
 
    	
 
    
	
Section 3.01.
    	
Access
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   BILLING; TAXES
    	
11
    
	
 
    	
 
    	
 
    
	
Section 4.01.
    	
Procedure
    	
11
    
	
Section 4.02.
    	
Late Payments
    	
11
    
	
Section 4.03.
    	
Taxes
    	
11
    
	
Section 4.04.
    	
No Set-Off
    	
12
    
	
Section 4.05.
    	
Billing Disputes
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE V   TERM AND TERMINATION
    	
12
    
	
 
    	
 
    	
 
    
	
Section 5.01.
    	
Term
    	
12
    
	
Section 5.02.
    	
Early Termination
    	
12
    
	
Section 5.03.
    	
Interdependencies
    	
13
    
	
Section 5.04.
    	
Effect of Termination
    	
13
    
	
Section 5.05.
    	
Information   Transmission
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS
    	
14
    
	
 
    	
 
    	
 
    
	
Section 6.01.
    	
Johnson Controls and   Adient Obligations
    	
14
    
	
Section 6.02.
    	
No Release; Return or   Destruction
    	
14
    
	
Section 6.03.
    	
Privacy and Data   Protection Laws; Residual Information
    	
15
    
	
Section 6.04.
    	
Protective Arrangements
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   LIMITED LIABILITY AND INDEMNIFICATION
    	
15
    
	
 
    	
 
    	
 
    
	
Section 7.01.
    	
Limitations on   Liability
    	
15
    

 

i

 

	
Section 7.02.
    	
Third Party Claims
    	
16
    
	
Section 7.03.
    	
Provider Indemnity
    	
16
    
	
Section 7.04.
    	
Indemnification   Procedures
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII   TRANSITION COMMITTEE
    	
17
    
	
 
    	
 
    	
 
    
	
Section 8.01.
    	
Establishment
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE IX   MISCELLANEOUS
    	
17
    
	
 
    	
 
    	
 
    
	
Section 9.01.
    	
Mutual Cooperation
    	
17
    
	
Section 9.02.
    	
Further Assurances
    	
17
    
	
Section 9.03.
    	
Audit Assistance
    	
17
    
	
Section 9.04.
    	
Title to Intellectual   Property
    	
18
    
	
Section 9.05.
    	
Independent Contractors
    	
18
    
	
Section 9.06.
    	
Counterparts; Entire   Agreement; Corporate Power
    	
18
    
	
Section 9.07.
    	
Governing Law
    	
19
    
	
Section 9.08.
    	
Assignability
    	
19
    
	
Section 9.09.
    	
Third-Party   Beneficiaries
    	
20
    
	
Section 9.10.
    	
Notices
    	
20
    
	
Section 9.11.
    	
Severability
    	
21
    
	
Section 9.12.
    	
Force Majeure
    	
21
    
	
Section 9.13.
    	
Headings
    	
22
    
	
Section 9.14.
    	
Survival of Covenants
    	
22
    
	
Section 9.15.
    	
Waivers of Default
    	
22
    
	
Section 9.16.
    	
Dispute Resolution
    	
22
    
	
Section 9.17.
    	
Specific Performance
    	
22
    
	
Section 9.18.
    	
Amendments
    	
23
    
	
Section 9.19.
    	
Precedence of Schedules
    	
23
    
	
Section 9.20.
    	
Interpretation
    	
23
    
	
Section 9.21.
    	
Mutual Drafting
    	
24
    

 

ii

 

TRANSITION SERVICES AGREEMENT

 

This TRANSITION SERVICES AGREEMENT, dated as of [•], 2016 (this “Agreement”), is by and between Johnson Controls plc, a public limited company organized under the laws of Ireland (“Johnson Controls”), and Adient plc, a public limited company organized under the laws of England and Wales (“Adient”).

 

R E C I T A L S:

 

WHEREAS, the board of directors of Johnson Controls (the “Johnson Controls Board”) has determined that it is in the best interests of Johnson Controls and its shareholders to create a new publicly traded company that shall operate the Adient Business;

 

WHEREAS, in furtherance of the foregoing, the Johnson Controls Board has determined that it is appropriate and desirable to separate the Adient Business from the Johnson Controls Business (the “Separation”) and, following the Separation, make a distribution, on a pro rata basis, to holders of Johnson Controls Shares on the Record Date of all the outstanding Adient Shares owned by Johnson Controls (the “Distribution”);

 

WHEREAS, in order to effectuate the Separation and the Distribution, Johnson Controls and Adient have entered into a Separation and Distribution Agreement, dated as of [•], 2016 (the “Separation and Distribution Agreement”);

 

WHEREAS, in order to facilitate and provide for an orderly transition in connection with the Separation and the Distribution, the Parties desire to enter into this Agreement to set forth the terms and conditions pursuant to which each of the Parties shall provide Services to the other Party for a transitional period; and

 

WHEREAS, the Parties acknowledge that this Agreement, the Separation and Distribution Agreement, and the Ancillary Agreements represent the integrated agreement of Johnson Controls and Adient related to the Separation and the Distribution, are being entered together, and would not have been entered independently.

 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.01.                          Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

 

“Action” has the meaning set forth in the Separation and Distribution Agreement.

 

“Adient” has the meaning set forth in the Preamble.

 

 

“Adient Business” has the meaning set forth in the Separation and Distribution Agreement.

 

“Adient Shares” has the meaning set forth in the Separation and Distribution Agreement.

 

“Adversely Affected Service” has the meaning set forth in Section 5.03.

 

“Affiliate” has the meaning set forth in the Separation and Distribution Agreement.

 

“Agreement” has the meaning set forth in the Preamble.

 

“Ancillary Agreements” has the meaning set forth in the Separation and Distribution Agreement.

 

“Charge” or “Charges” has the meaning set forth in Section 2.03.

 

“Confidential Information” shall mean all Information that is either confidential and/or proprietary.

 

“Dispute” has the meaning set forth in Section 9.16(a).

 

“Distribution” has the meaning set forth in the Recitals.

 

“Distribution Date” has the meaning set forth in the Separation and Distribution Agreement.

 

“Divested Business” has the meaning set forth in Section 9.08(b).

 

“Divested Business Acquirer” has the meaning set forth in Section 9.08(b).

 

“Early Termination Charges” shall mean, with respect to the termination of any Service pursuant to Section 5.02(a)(i), the sum of (a) any and all reasonable costs, fees and expenses (other than any severance or retention costs) payable by the Provider of such Service to a Third Party due to the early termination of such Service; provided, however, that the Provider shall use commercially reasonable efforts to minimize any costs, fees or expenses payable by the Provider to any Third Party in connection with such early termination of such Service, and the Early Termination Charges payable by the Recipient shall be reduced accordingly; and (b) any additional severance and retention costs, if any, because of the early termination of such Service that the Provider of such terminated Service incurs to employees who had been retained primarily to provide such terminated Service (it being agreed that the costs set forth in this clause (b) shall only be the amount, if any, in excess of the severance and retention costs that such Provider would have paid to such employees if the Service had been provided for the full period during which such Service would have been provided hereunder but for such early termination).

 

“Effective Time” has the meaning set forth in the Separation and Distribution Agreement.

 

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“Force Majeure” has the meaning set forth in the Separation and Distribution Agreement.

 

“Governmental Authority” has the meaning set forth in the Separation and Distribution Agreement.

 

“Group” has the meaning set forth in the Separation and Distribution Agreement.

 

“Information” has the meaning set forth in the Separation and Distribution Agreement.

 

“Intellectual Property” has the meaning set forth in the Separation and Distribution Agreement.

 

“Interest Payment” has the meaning set forth in Section 4.02.

 

“Johnson Controls” has the meaning set forth in the Preamble.

 

“Johnson Controls Board” has the meaning set forth in the Recitals.

 

“Johnson Controls Business” has the meaning set forth in the Separation and Distribution Agreement.

 

“Johnson Controls Shares” has the meaning set forth in the Separation and Distribution Agreement.

 

“Law” has the meaning set forth in the Separation and Distribution Agreement.

 

“Level of Service” has the meaning set forth in Section 2.02(c).

 

“Liability” or “Liabilities” has the meaning set forth in the Separation and Distribution Agreement.

 

“New Service” has the meaning set forth in Section 2.01(d).

 

“Notice of Breach” has the meaning set forth in Section 5.02(a)(ii).

 

“Omitted Service” has the meaning set forth in Section 2.01(b).

 

“One-Time Payment” has the meaning set forth in Section 2.02(b).

 

“Party” or “Parties” shall mean the parties to this Agreement.

 

“Person” has the meaning set forth in the Separation and Distribution Agreement.

 

“Prime Rate” has the meaning set forth in the Separation and Distribution Agreement.

 

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“Provider” shall mean, with respect to any Service, the Party identified on the Schedules hereto as the “Provider” of such Service.

 

“Provider Indemnitees” has the meaning set forth in Section 7.02.

 

“Recipient” shall mean, with respect to any Service, the Party receiving such Service hereunder.

 

“Record Date” has the meaning set forth in the Separation and Distribution Agreement.

 

“Representatives” has the meaning set forth in the Separation and Distribution Agreement.

 

“Residual Information” has the meaning set forth in the Separation and Distribution Agreement.

 

“Schedule” or “Schedules” has the meaning set forth in Section 2.01(a).

 

“Separation” has the meaning set forth in the Recitals.

 

“Separation and Distribution Agreement” has the meaning set forth in the Recitals.

 

“Service” or “Services” has the meaning set forth in Section 2.01(a).

 

“Service Baseline Period” has the meaning set forth in Section 2.02(c).

 

“Service Change” has the meaning set forth in Section 2.01(c).

 

“Service Interruption”  has the meaning set forth in Section 2.02(a).

 

“Service Period” shall mean, with respect to any individual Service, the period commencing on the Distribution Date and ending on the earlier of (a) the date that a Party terminates the provision of the entirety of such individual Service pursuant to Section 5.02, (b) the date that is the twenty-four (24)-month anniversary of the Distribution Date, or (c) the date specified for termination of such individual Service in the Schedules hereto.

 

“Service Standard” has the meaning set forth in Section 2.02(a).

 

“Subsidiary” or “Subsidiaries” has the meaning set forth in the Separation and Distribution Agreement.

 

“Tax” has the meaning set forth in the Tax Matters Agreement.

 

“Tax Authority” has the meaning set forth in the Tax Matters Agreement.

 

“Tax Matters Agreement” has the meaning set forth in the Separation and Distribution Agreement.

 

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“Term” has the meaning set forth in the Section 5.01.

 

“Third Party” shall mean any Person other than the Parties or any of their Affiliates.

 

“Third Party Claim” shall mean any claim asserted or any Action commenced by any Third Party against any Party or any of its Affiliates.

 

“To-be-Terminated Service” has the meaning set forth in Section 5.03.

 

“Transition Committee” has the meaning set forth in the Separation and Distribution Agreement.

 

ARTICLE II
 SERVICES

 

Section 2.01.                          Services.

 

(a)                                 Commencing as of the Effective Time, the Provider agrees to provide, or to cause one or more of its Subsidiaries to provide, to the Recipient, or any designated Subsidiary or Affiliate of the Recipient, the applicable services (each a “Service” and, collectively, the “Services”) set forth on the schedules hereto (each, a “Schedule” and, collectively, the “Schedules”).

 

(b)                                 During the Term, if a Party identifies a service that the other Party or any of its Subsidiaries provided to the identifying Party or any of its Subsidiaries during the twelve (12)-month period immediately prior to the Distribution Date, but such service was inadvertently omitted from the Services set forth in the Schedules hereto (an “Omitted Service”), then the Provider shall provide, or shall cause one of more of its Subsidiaries to provide, such Omitted Service, and the Parties shall negotiate in good faith the terms and conditions upon which the other Party shall provide such Omitted Service, which terms and conditions shall include the applicable Service Standard and shall otherwise be substantially in line with terms and conditions of such Omitted Service during the twelve (12)-month period immediately prior to the Distribution Date.

 

(c)                                  During the Term, either Party may request that the other Party modify, alter or adjust the manner in which the other Party provides Services (a “Service Change”).  Following the delivery of such request, the Parties shall negotiate in good faith the terms and conditions of such Service Change, which terms and conditions shall include the applicable Service Standard.

 

(d)                                 During the Term, either Party may request that the other Party provide an additional or different service that is not an Omitted Service and that does not constitute a Service Change (a “New Service”).  The other Party shall consider such request, but nothing in this Agreement shall require the other Party to agree to provide such New Service.  If the other Party consents to providing the requested New Service, then the Parties shall cooperate in good faith to

 

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determine the terms and conditions upon which the other Party shall provide such requested New Service, including the applicable Service Standard.

 

(e)                                  The terms and conditions of any Omitted Service, agreed-upon Service Change or New Services that the providing Party consents to provide shall be documented in a supplement to the Schedules describing in reasonable detail the nature, scope, Charges, Service Period(s), termination provisions and other terms and conditions applicable to such Omitted Service, Service Change or New Service, as applicable, in a manner similar to that in which the Services are described in the Schedules.  Each supplement to the Schedules that is agreed to in writing by the Parties shall be deemed part of this Agreement as of the date of such agreement, and the Omitted Service, Service Change or New Service set forth therein shall be deemed a Service provided under this Agreement, in each case subject to the terms and conditions of this Agreement.

 

Section 2.02.                          Performance of Services.

 

(a)                                 The Provider shall perform, or shall cause one or more of its Subsidiaries to perform, all Services to be provided by the Provider in a commercially reasonable manner (i) that is based on its past practice and that is substantially similar in all material respects to the analogous services provided by or on behalf of Johnson Controls or any of its Subsidiaries to Johnson Controls or its applicable functional group or Subsidiary during the twelve (12) months immediately prior to the Effective Time, if such service or a similar service was provided prior to the Effective Time, or (ii) that is based on its then-current practice and that is substantially similar in all material respects to the analogous services provided by or on behalf of Johnson Controls or any of its Subsidiaries to Johnson Controls or its applicable functional group or Subsidiary following the Effective Time (clause (i) or (ii), as applicable, the “Service Standard”).  Upon receipt of written notice from the Recipient identifying any outage, interruption, disruption, downturn or other failure of any Service (a “Service Interruption”), Provider shall use commercially reasonable efforts to respond, or to cause one or more of its Subsidiaries to respond, to such Service Interruption in a manner that is substantially similar to the manner in which Provider or its Affiliates responded to Service Interruptions during the twelve (12)-month period prior to the Effective Time or, if such service or a similar service was not provided prior to the Effective Time, in a manner that is substantially similar to the manner in which such Provider or its Affiliates respond with respect to internally provided services.

 

(b)                                 Nothing in this Agreement shall require the Provider to perform or cause to be performed any Service to the extent that the Provider reasonably believes that the manner of such performance would constitute (i) a breach, violation or infringement of, or a default under, any of the terms, conditions or provisions of any agreement, instrument, contract, obligation or undertaking which was entered into by such Provider prior to the date of this Agreement or (ii) a violation of any applicable Law.  If the Provider is or becomes aware of any potential violation on the part of the Provider, the Provider shall use commercially reasonable efforts to promptly advise the Recipient of such potential violation, and the Provider and the Recipient will mutually seek an alternative that addresses such potential violation.  The Parties agree to cooperate in good faith and use commercially reasonable efforts to obtain any necessary Third Party consents required under any existing contract or agreement with a Third Party or under applicable Law to allow the Provider to perform, or cause to be performed, all Services to be provided

 

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by the Provider hereunder in accordance with the standards set forth in this Section 2.02.  Without limiting the foregoing, neither Party shall under any circumstance be required to (and the Provider shall not, without the prior written consent of the Recipient) pay or commit to pay any amount or incur any obligation in favor of or offer or grant any accommodation (financial or otherwise, including any requirements for the securing or posting of any bonds, letters of credit or similar instruments, or the furnishing of any guarantees) to obtain any such Third Party consent, except that the Provider shall be required to make one such payment, commitment or accommodation if required by such Third Party (a “One-Time Payment”).  Unless otherwise agreed in writing in advance by the Parties, other than One-Time Payments, all reasonable out-of-pocket costs and expenses (if any) incurred by the Recipient or any of its Subsidiaries or, with the Recipient’s prior written consent, the Provider or any of its Subsidiaries in connection with obtaining any such Third Party consent that is required to allow the Provider to perform or cause to be performed such Services shall be borne solely by the Recipient.  If, with respect to a Service, the Parties, despite the use of such commercially reasonable efforts and the making of a One-Time Payment, are unable to obtain a required Third Party consent, or the performance of such Service by the Provider would constitute a violation of any applicable Law, the Parties shall use commercially reasonable efforts to develop an alternative arrangement that is reasonably acceptable to each Party and that enables the Provider to perform or cause to be performed such Service or an analogous service without obtaining such required Third Party consent or violating any applicable Law.

 

(c)                                  The Provider shall not be obligated to perform or to cause to be performed any Service in a manner that is materially more burdensome (with respect to service quality or quantity) than analogous services provided to Johnson Controls or its applicable functional group or Subsidiary (collectively referred to as the “Level of Service”) during Johnson Controls’ fiscal year 2016 (the “Service Baseline Period”).  A Service shall be deemed materially more burdensome if, among other items, its usage exceeds the highest quantity of analogous services provided to the functional groups or Subsidiaries of Johnson Controls that are part of the Recipient during the Service Baseline Period, or if the Provider is required to hire new employees, engage new contractors or make capital investments in respect of such Service greater than the maximum number of employees or contractors dedicated at any time to analogous services, or investments made by Johnson Controls with respect to analogous services, during the Service Baseline Period.  If the Recipient requests that the Provider perform or cause to be performed any Service that exceeds the Level of Service during the Service Baseline Period, including any acquisition or upgrade of technology, software or information systems, then the Parties shall cooperate and act in good faith to determine whether the Provider will be required to provide such requested higher Level of Service.  If and to the extent that the Parties determine that the Provider shall provide the requested higher Level of Service, then such higher Level of Service shall be documented in a supplement to the Schedules.  Each such supplement, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such written agreement and the Level of Service increases set forth in such written agreement shall be deemed a part of the Services provided under this Agreement, in each case subject to the terms and conditions of this Agreement.

 

(d)                                 (i) Neither the Provider nor any of its Subsidiaries shall be required to perform or to cause to be performed any of the Services for the benefit of any Third Party or any other Person other than the Recipient and its Subsidiaries, and (ii) EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 2.02 OR SECTION 7.03, EACH PARTY ACKNOWLEDGES

 

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AND AGREES THAT ALL SERVICES ARE PROVIDED ON AN “AS-IS” BASIS, THAT THE RECIPIENT ASSUMES ALL RISK AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES, AND THAT THE PROVIDER MAKES NO OTHER REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, WITH RESPECT TO THE SERVICES.  EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

 

(ii)                                  Each Party shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement.  No Party shall knowingly take any action in violation of any such applicable Law that results in Liability being imposed on the other Party.  Notwithstanding any other provision of this Agreement, (i) neither Party shall, in connection with its performance or use of Services under this Agreement, knowingly take any action, or fail to take any action that Johnson Controls took in the ordinary course during the Service Baseline Period in connection with such Service, if the taking of such action or failure to take such action would materially adversely affect the ability of the other Party and its Subsidiaries or Affiliates to comply with such applicable Laws, and (ii) the Provider shall not have any obligation to provide, or cause to be provided, Services to the extent that any change in applicable Law after the date of this Agreement provision would materially increase or change the Provider’s burden or the burden of any applicable Subsidiary of the Provider with respect to compliance with applicable Laws, unless the applicable Recipient agrees to bear all incremental costs resulting from the increased compliance burden associated with providing such Services; provided, that the Provider shall use commercially reasonable efforts to promptly advise the Recipient of such increased burden, and the Provider and the Recipient will mutually seek an alternative that minimizes such increased burden.

 

Section 2.03.                          Charges for Services.  Unless otherwise provided with respect to a specific Service on the Schedules hereto, the Recipient shall pay the Provider of the Services a fee (either one-time or recurring) for such Services (or category of Services, as applicable) (each fee constituting a “Charge” and, collectively, “Charges”), which Charges shall be set forth on the applicable Schedules hereto, or if not set forth, then based upon the actual cost of providing such Services as agreed to by the Parties from time to time.  During the Term, the amount of a Charge for any Service may be modified to the extent of (a) any adjustments mutually agreed to in writing by the Parties, (b) any adjustments due to a change in Level of Service requested by the Recipient and agreed upon by the Provider, and (c) any adjustment in the rates or charges imposed by any Third Party provider that is providing Services pursuant to the existing agreement with such Third Party provider for such Services or any renewal thereof that contains substantially similar terms (proportional to the respective use of such Services by each Party).  Each Party shall use commercially reasonable efforts to minimize the cost of providing the Services. Together with any invoice for Charges, the Provider shall provide the Recipient with reasonable documentation, including any additional documentation reasonably requested by the Recipient to

 

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the extent that such documentation is in the Provider’s or its Subsidiaries’ possession or control, to support the calculation of such Charges.

 

Section 2.04.                          Reimbursement for Out-of-Pocket Costs and Expenses.  The Recipient shall reimburse the Provider for reasonable out-of-pocket costs and expenses incurred by the Provider or any of its Subsidiaries in connection with providing the Services (including reasonable travel-related expenses) to the extent that such costs and expenses are not reflected in the Charges for such Services; provided, that any such cost or expense in excess of five thousand dollars ($5,000.00), in the aggregate, that is not consistent with the historical practice between the Parties for any individual Service (including business travel and related expenses) shall require advance written approval of the Recipient.  Any authorized travel-related expenses incurred in performing the Services shall be incurred and charged to the Recipient in accordance with the Provider’s then-applicable business travel policies.

 

Section 2.05.                          Changes in the Performance of Services.  Subject to the performance standards for Services set forth in Sections 2.02(a), 2.02(b) and 2.02(c), the Provider may make changes from time to time in the manner of performing the Services if the Provider is making similar changes in performing analogous services for itself and if the Provider furnishes to the Recipient reasonable prior written notice (in content and timing) of such changes; provided, that no such change shall have a significant adverse effect on the timeliness or quality of, or the Charges for, the applicable Service.  If any such change by the Provider reasonably requires the Recipient to incur an increase in costs and expenses to continue to receive and utilize the applicable Services in the same manner as the Recipient was receiving and utilizing such Service prior to such change, the Provider shall be required to reimburse the Recipient for all such reasonable increase in costs and expenses.  Upon request, the Recipient shall provide the Provider with reasonable documentation, including any additional documentation reasonably requested by the Provider to the extent that such documentation is in the Recipient’s or its Subsidiaries’ possession or control, to support the calculation of such increase in costs and expenses.

 

Section 2.06.                          Transitional Nature of Services.  The Parties acknowledge the transitional nature of the Services.  The Recipient agrees to cooperate in good faith and to use commercially reasonable efforts to effectuate a smooth transition of the Services from the Provider to the Recipient (or its designee) as soon as commercially practicable after the Distribution Date, but in any event before the end of the Service period for such Service (as described in Section 5.01). The Parties agree to use reasonable efforts to assist and cooperate in good faith with each other in order to effectuate such transition of the Services from the Provider to the Recipient (or its designee) in a timely and orderly manner.

 

Section 2.07.                    Subcontracting.  The Provider may hire or engage one or more Third Parties to perform any or all of its obligations under this Agreement; provided, that if a Third Party was not already performing such obligation on behalf of the Provider immediately prior to the Distribution Date, the Provider shall (a) notify the Recipient prior to hiring or engaging such Third Party and (b) obtain the Recipient’s prior consent (such consent not to be unreasonably withheld, conditioned or delayed) if (i) the hiring or engagement of such Third Party would decrease the quality or level of the Services provided to the Recipient compared to the quality or level of Services provided by the Provider or (ii) the use of such Third Party would increase the Charges payable by the Recipient in connection with such Services; provided, further,

 

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that the Provider shall in all cases remain primarily responsible for all of its obligations under this Agreement with respect to the scope of the Services, the performance standard for Services set forth in Sections 2.02(a), 2.02(b) and 2.02(c) and the content of the Services provided to the Recipient.  Subject to the confidentiality provisions set forth in Article VI, each Party shall, and shall cause its respective Affiliates to, provide, upon ten (10) business days’ prior written notice from the other Party, any Information within such Party’s or its Affiliates’ possession that the requesting Party reasonably requests in connection with any Services being provided to such requesting Party by a Third Party, including any applicable invoices, agreements documenting the arrangements between such Third Party and the Provider and other supporting documentation.

 

ARTICLE III
 OTHER ARRANGEMENTS

 

Section 3.01.                          Access.

 

(a)                                 Adient shall, and shall cause its Subsidiaries to, allow Johnson Controls and its Subsidiaries and their respective Representatives reasonable access to the facilities of Adient and its Subsidiaries that is necessary for Johnson Controls and its Subsidiaries to fulfill their obligations under this Agreement.  In addition to the foregoing right of access, Adient shall, and shall cause its Subsidiaries to, afford Johnson Controls, its Subsidiaries and their respective Representatives, upon reasonable advance written notice, reasonable access during normal business hours to the facilities, Information, systems, infrastructure and personnel of Adient and its Subsidiaries as is reasonably necessary for Johnson Controls to verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed in connection with the Services being provided by Adient or its Subsidiaries, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided, that (i) such access shall not unreasonably interfere with any of the business or operations of Adient or any of its Subsidiaries and (ii) in the event that Adient determines that providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such access in a manner that avoids such harm or consequence.  Johnson Controls agrees that all of its and its Subsidiaries’ employees shall, and that it shall use commercially reasonable efforts to cause its Representatives’ employees to, when on the property of Adient or its Subsidiaries, or when given access to any facilities, Information, systems, infrastructure or personnel of Adient or its Subsidiaries, conform to the policies and procedures of Adient and its Subsidiaries, as applicable, concerning health, safety, conduct and security which are made known or provided to Johnson Controls from time to time.

 

(b)                                 Johnson Controls shall, and shall cause its Subsidiaries to, allow Adient and its Subsidiaries and their respective Representatives reasonable access to the facilities of Johnson Controls and its Subsidiaries that is necessary for Adient and its Subsidiaries to fulfill their obligations under this Agreement.  In addition to the foregoing right of access, Johnson Controls shall, and shall cause its Subsidiaries to, afford Adient, its Subsidiaries and their respective Representatives, upon reasonable advance written notice, reasonable access during normal business hours to the facilities, Information, systems, infrastructure and personnel of Johnson Controls and its Subsidiaries as is reasonably necessary for Adient to verify the adequacy of

 

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internal controls over information technology, reporting of financial data and related processes employed in connection with the Services being provided by Johnson Controls or its Subsidiaries, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided, that (i) such access shall not unreasonably interfere with any of the business or operations of Johnson Controls or any of its Subsidiaries and (ii) in the event that Johnson Controls determines that providing such access could be commercially detrimental, violate any applicable Law or agreement or waive any attorney-client privilege, then the Parties shall use commercially reasonable efforts to permit such access in a manner that avoids such harm or consequence.  Adient agrees that all of its and its Subsidiaries’ employees shall, and that it shall use commercially reasonable efforts to cause its Representatives’ employees to, when on the property of Johnson Controls or its Subsidiaries, or when given access to any facilities, Information, systems, infrastructure or personnel of Johnson Controls or its Subsidiaries, conform to the policies and procedures of Johnson Controls and its Subsidiaries, as applicable, concerning health, safety, conduct and security which are made known or provided to Adient from time to time.

 

ARTICLE IV
 BILLING; TAXES

 

Section 4.01.                          Procedure.  Charges for the Services shall be charged to and payable by the Recipient.  Amounts payable pursuant to this Agreement shall be paid by wire transfer (or such other method of payment as may be agreed between the Parties from time to time in writing) to the Provider (as directed by the Provider), on a monthly basis in the case of recurring fees, which amounts shall be due within thirty (30) days of the Recipient’s receipt of each such invoice, including reasonable documentation pursuant to Section 2.03.  Unless otherwise indicated in the Schedules, all amounts due and payable hereunder shall be invoiced and paid in U.S. dollars.  If an amount is required to be paid in another currency, the conversion rate used to determine the amount of such Charge in U.S. dollars shall be the conversion rate used at the time that the obligation to pay arises in the financial reporting systems of the Party receiving such payment.

 

Section 4.02.                          Late Payments.  Charges not paid when due pursuant to this Agreement (and any amounts billed or otherwise invoiced or demanded and properly payable that are not paid within thirty (30) days of the receipt of such bill, invoice or other demand) shall accrue interest at a rate per annum equal to the Prime Rate plus two (2%) percent (the “Interest Payment”).

 

Section 4.03.                          Taxes.  Without limiting any provisions of this Agreement, the Recipient shall bear any and all Taxes and other similar charges (and any related interest and penalties) imposed on, or payable with respect to, any fees or charges, including any Charges, payable by it pursuant to this Agreement, including all sales, use, value-added, and similar Taxes, but excluding any Taxes based on the Provider’s income.  Notwithstanding anything to the contrary in the previous sentence or elsewhere in this Agreement, the Recipient shall be entitled to withhold from any payments to the Provider any such Taxes that the Recipient is required by applicable Law to withhold and shall pay such Taxes to the applicable Tax Authority.

 

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Section 4.04.                          No Set-Off.  Except as mutually agreed to in writing by Johnson Controls and Adient, no Party or any of its Affiliates shall have any right of set-off or other similar rights with respect to (a) any amounts received pursuant to this Agreement or (b) any other amounts claimed to be owed to the other Party or any of its Subsidiaries arising out of this Agreement.

 

Section 4.05.                    Billing Disputes.  The Recipient’s payment of Charges for Services pursuant to this Article IV shall not be deemed to waive the Recipient’s right to dispute in good faith the accuracy or amount of any such Charge or any such payment. Any such Dispute regarding Charges, and any refund or reimbursement of Charges paid by the Recipient, shall be resolved in accordance with the terms of Section 9.16.

 

ARTICLE V
 TERM AND TERMINATION

 

Section 5.01.                          Term.  This Agreement shall commence at the Effective Time and shall be in effect until terminated in accordance with this Article V (the “Term”).  This Agreement shall terminate upon the earlier to occur of (a) the last date on which either Party is obligated to provide any individual Service to the other Party in accordance with the terms of this Agreement; (b) the mutual written agreement of the Parties to terminate this Agreement in its entirety; or (c) the date that is the twenty-four (24)-month anniversary of the Distribution Date.  Unless otherwise terminated pursuant to Section 5.02, this Agreement shall terminate with respect to each Service as of the close of business on the last day of the Service Period for such Service.

 

Section 5.02.                          Early Termination.

 

(a)                                 Without prejudice to the Recipient’s rights with respect to Force Majeure, the Recipient may from time to time terminate this Agreement with respect to the entirety of any individual Service but not a portion thereof:

 

(i)                                     for any reason or no reason, upon the giving of at least thirty (30) days’ prior written notice to the Provider of such Service; provided, that if a Schedule hereto sets forth a different notice period, then the Recipient shall comply with such different notice periods; provided, further, that any such termination shall be subject to the obligation to pay any applicable Early Termination Charges pursuant to Section 5.04; or

 

(ii)                                  if the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to such Service, and such failure shall continue to be uncured for a period of at least thirty (30) days after receipt by the Provider of written notice of such failure (the “Notice of Breach”) from the Recipient; provided, that the Recipient shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 9.16) as to whether the Provider has breached this Agreement or cured the applicable breach.

 

(b)                                 The Provider may terminate this Agreement with respect to any individual Service, but not a portion thereof, at any time upon prior written notice to the Recipient, if the

 

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Recipient has failed to perform any of its material obligations under this Agreement relating to such Service, including making payment of Charges for such Service when due, and such failure shall continue to be uncured for a period of at least thirty (30) days after receipt by the Recipient of the Notice of Breach from the Provider; provided, that the Provider shall not be entitled to terminate this Agreement with respect to the applicable Service if, as of the end of such period, there remains a good-faith Dispute between the Parties (undertaken in accordance with the terms of Section 9.16) as to whether the Recipient materially breached this Agreement or has cured the applicable breach.

 

(c)                                  The Schedules hereto shall be updated to reflect any terminated Service.

 

Section 5.03.                          Interdependencies.  The Parties acknowledge and agree that (a) there may be interdependencies among the Services being provided under this Agreement; (b) upon the request of either Party, the Parties shall cooperate and act in good faith to determine whether (i) any such interdependencies exist with respect to the particular Service that a Party is seeking to terminate pursuant to Section 5.02 (the “To-be-Terminated Service”) and (ii) in the case of such termination, the Provider’s ability to provide a particular Service in accordance with this Agreement would be materially and adversely affected by such termination of another Service (the “Adversely Affected Service”); and (c) in the event that the Parties have determined that such interdependencies exist and such termination would materially and adversely affect the Provider’s ability to provide a particular Service in accordance with this Agreement, the Parties shall negotiate in good faith to amend the Schedules hereto with respect to such Adversely Affected Service, which amendment shall be consistent with the terms of comparable Services.  If, after such negotiations, the Parties are unable to agree on an amendment with respect to the Adversely Affected Service, the Dispute between the Parties shall be resolved in accordance with the terms of Section 9.16, and the Provider’s obligation to provide, and the Recipient’s obligation to pay for, the To-be-Terminated Service and the Adversely Affected Service shall continue until the resolution of such Dispute.

 

Section 5.04.                          Effect of Termination.  Upon the termination of any Service pursuant to this Agreement, the Provider of the terminated Service shall have no further obligation to provide the terminated Service, and the Recipient of such Service shall have no obligation to pay any future Charges relating to such Service; provided, that the Recipient shall remain obligated to the Provider for (a) the Charges owed and payable in respect of Services provided prior to the effective date of termination for such Service, and (b) any applicable Early Termination Charges (which, in the case of each of clauses (a) and (b), shall be payable only in the event that the Recipient terminates any Service pursuant to Section 5.02(a)(i)) (it being understood that the Parties shall use their commercially reasonable efforts to mitigate any such Early Termination Charges). Any Dispute regarding Charges and Early Termination Charges, and any refund or reimbursement of Charges or Early Termination Charges paid by the Recipient, shall be resolved in accordance with the terms of Section 9.16.  In connection with the termination of any Service, the provisions of this Agreement not relating solely to such terminated Service shall survive any such termination, and in connection with a termination of this Agreement, Article I, this Article V, Article VII and Article IX, all confidentiality obligations under this Agreement and Liability for all due and unpaid Charges, and Early Termination Charges shall continue to survive.

 

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Section 5.05.                          Information Transmission.  The Provider, on behalf of itself and its respective Subsidiaries, shall use commercially reasonable efforts to provide or make available, or cause to be provided or made available, to the Recipient, in accordance with Section 6.1 of the Separation and Distribution Agreement, any Information received or computed by the Provider for the benefit of the Recipient concerning the relevant Service during the Service Period; provided, that, except as otherwise agreed to in writing by the Parties, (a) the Provider shall not have any obligation to provide, or cause to be provided, Information in any non-standard format, (b) the Provider and its Subsidiaries shall be reimbursed for their reasonable costs in accordance with Section 6.3 of the Separation and Distribution Agreement for creating, gathering, copying, transporting and otherwise providing such Information, and (c) the Provider shall use commercially reasonable efforts to maintain any such Information in accordance with Section 6.4 of the Separation and Distribution Agreement.

 

ARTICLE VI
 CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS

 

Section 6.01.                          Johnson Controls and Adient Obligations.  Subject to Section 6.04, until the seven (7)-year anniversary of the end of the Term, each of Johnson Controls and Adient, on behalf of itself and each of its Subsidiaries, agrees to hold, and to cause its respective Representatives to hold, in strict confidence, with at least the same degree of care that applies to Johnson Controls’ Confidential Information pursuant to policies in effect as of the Effective Time, all Confidential Information concerning the other Party or its Subsidiaries or their respective businesses that is either in its possession (including Confidential Information in its possession prior to the date hereof) or furnished by any such other Party or such other Party’s Subsidiaries or their respective Representatives at any time pursuant to this Agreement, and shall not use any such Confidential Information of the other Party other than for such purposes as shall be expressly permitted hereunder, except, in each case, to the extent that such Confidential Information is or was (a) in the public domain or generally available to the public, other than as a result of a disclosure by such Party or any of its Subsidiaries or any of their respective Representatives in violation of this Agreement; (b) later lawfully acquired from other sources by such Party or any of its Subsidiaries, which sources are not themselves bound by a confidentiality obligation or other contractual, legal or fiduciary obligation of confidentiality with respect to such Confidential Information; or (c) independently developed or generated without reference to or use of the Confidential Information of the other Party or any of its Subsidiaries.  If any Confidential Information of a Party or any of its Subsidiaries is disclosed to the other Party or any of its Subsidiaries in connection with providing the Services, then such disclosed Confidential Information shall be used by the receiving Party only as required to perform such Services.

 

Section 6.02.                    No Release; Return or Destruction.  Each Party agrees (a) not to release or disclose, or permit to be released or disclosed, any Confidential Information of the other Party addressed in Section 6.01 to any other Person, except its Representatives who need to know such Confidential Information in their capacities as such (who shall be advised of and have acknowledged in writing their obligations hereunder with respect to such Confidential Information) and except in compliance with Section 6.04, and (b) to use commercially reasonable efforts to maintain such Confidential Information in accordance with Section 6.4 of the Separation and Distribution Agreement.  Without limiting the foregoing, when any such Confidential Information is no longer needed for the purposes contemplated by the Separation and Distribution

 

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Agreement, this Agreement or any other Ancillary Agreements, each Party will promptly after request of the other Party either return to the other Party all such Confidential Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or notify the other Party in writing that it has destroyed such information (and such copies thereof and such notes, extracts or summaries based thereon); provided, that such Party’s Representatives may retain one (1) copy of such information to the extent required by applicable Law or professional standards, and shall not be required to destroy any such information located in back-up, archival electronic storage.

 

Section 6.03.                          Privacy and Data Protection Laws; Residual Information.  Each Party shall comply with all applicable state, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of the Services under this Agreement. Notwithstanding anything to the contrary herein, each Party and its Subsidiaries shall be free to use for any purpose the Residual Information resulting from access Representatives of such Party or its Subsidiaries have had to confidential and proprietary information concerning the other Party or its Subsidiaries. The Parties acknowledge and understand that the foregoing does not constitute a license under any patents or copyrights, nor does it confer any other rights or interests in either Parties’ Intellectual Property.

 

Section 6.04.                          Protective Arrangements.  In the event that a Party or any of its Subsidiaries either determines on the advice of its counsel that it is required to disclose any information pursuant to applicable Law or receives any request or demand under lawful process or from any Governmental Authority to disclose or provide information of the other Party (or any of its Subsidiaries) that is subject to the confidentiality provisions hereof, such Party shall notify the other Party (to the extent legally permitted) as promptly as practicable under the circumstances prior to disclosing or providing such information and shall cooperate, at the expense of the other Party, in seeking any appropriate protective order requested by the other Party.  In the event that such other Party fails to receive such appropriate protective order in a timely manner and the Party receiving the request or demand reasonably determines that its failure to disclose or provide such information shall actually prejudice the Party receiving the request or demand, then the Party that received such request or demand may thereafter disclose or provide information to the extent required by such Law (as so advised by its counsel) or by lawful process or such Governmental Authority, and the disclosing Party shall promptly provide the other Party with a copy of the information so disclosed, in the same form and format so disclosed, together with a list of all Persons to whom such information was disclosed, in each case to the extent legally permitted.

 

ARTICLE VII
 LIMITED LIABILITY AND INDEMNIFICATION

 

Section 7.01.                          Limitations on Liability.

 

(a)                                 THE CUMULATIVE AGGREGATE LIABILITIES OF THE PROVIDER AND ITS SUBSIDIARIES AND THEIR RESPECTIVE REPRESENTATIVES, COLLECTIVELY, UNDER THIS AGREEMENT FOR ANY ACT OR FAILURE TO ACT IN CONNECTION HEREWITH (INCLUDING THE PERFORMANCE OR BREACH OF THIS AGREEMENT), OR FROM THE SALE, DELIVERY, PROVISION OR USE OF ANY SERVICES PROVIDED UNDER OR CONTEMPLATED BY THIS AGREEMENT,

 

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WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, SHALL NOT EXCEED: (X) IF THE SERVICES WERE PERFORMED BY SUCH PROVIDER FOR LESS THAN SIX (6) MONTHS, THE AGGREGATE CHARGES PAID OR THAT OTHERWISE WOULD HAVE BEEN PAYABLE TO SUCH PROVIDER BY THE RECIPIENT PURSUANT TO THIS AGREEMENT DURING THE SIX (6)-MONTH PERIOD FOLLOWING THE EFFECTIVE TIME OF THIS AGREEMENT, (Y) IF THE SERVICES WERE PERFORMED BY SUCH PROVIDER FOR SIX (6) MONTHS OR LONGER, THE AGGREGATE CHARGES PAID AND PAYABLE TO SUCH PROVIDER BY THE RECIPIENT PURSUANT TO THIS AGREEMENT DURING THE SIX (6)-MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH LIABILITIES.

 

(b)                                 IN NO EVENT SHALL EITHER PARTY, ITS SUBSIDIARIES OR THEIR RESPECTIVE REPRESENTATIVES BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTIAL, CONSEQUENTIAL, SPECIAL, PUNITIVE, EXEMPLARY, REMOTE, SPECULATIVE OR SIMILAR DAMAGES IN EXCESS OF COMPENSATORY DAMAGES OF THE OTHER PARTY (INCLUDING LOST PROFITS OR LOST REVENUES) IN CONNECTION WITH THE SALE, DELIVERY, PROVISION OR USE OF ANY SERVICES PROVIDED UNDER OR CONTEMPLATED BY THIS AGREEMENT (OTHER THAN ANY SUCH LIABILITY WITH RESPECT TO A THIRD-PARTY CLAIM), AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF, ITS SUBSIDIARIES AND ITS REPRESENTATIVES ANY CLAIM FOR SUCH DAMAGES, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE.

 

(c)                                  The limitations in Section 7.01(a) shall not apply in respect of any Liability arising out of or in connection with (i) either Party’s Liability for breaches of confidentiality under Article VI, (ii) either Party’s obligations under Section 7.02 or Section 7.03, or (iii) the gross negligence, willful misconduct or fraud of or by the Party to be charged.

 

(d)                                 The limitations in Section 7.01(b) shall not apply in respect of any Liability arising out of or in connection with (i) either Party’s obligations under Section 7.02, or (ii) the gross negligence, willful misconduct, or fraud of or by the Party to be charged.

 

Section 7.02.                          Third Party Claims.  In addition to (but not in duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, the Recipient shall indemnify, defend and hold harmless the Provider, its Subsidiaries and each of their respective Representatives, and each of the successors and assigns of any of the foregoing (collectively, the “Provider Indemnitees”), from and against any and all claims of Third Parties relating to, arising out of or resulting from the sale, delivery, provision or use of the Services by the Recipient, except to the extent that such claims relate to, arise out of or result from (a) the Provider’s breaches of confidentiality under Article VI or (b) Third Party Claims arising out of the gross negligence, willful misconduct or fraud of any Provider Indemnitee.

 

Section 7.03.                          Provider Indemnity.  In addition to (but not in duplication of) its other indemnification obligations (if any) under the Separation and Distribution Agreement, this Agreement or any other Ancillary Agreement, the Provider shall indemnify, defend and hold

 

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harmless the Recipient, its Subsidiaries and each of their respective Representatives, and each of the successors and assigns of any of the foregoing, from and against any and all Liabilities relating to, arising out of or resulting from the sale, delivery, provision or use of any Services provided by such Provider hereunder, but only to the extent that such Liability relates to, arises out of or results from (a) the Provider’s breaches of confidentiality under Article VI or (b) the gross negligence, willful misconduct or fraud of any Provider.

 

Section 7.04.                          Indemnification Procedures.  The procedures for indemnification set forth in Sections 4.5, 4.6 and 4.7 of the Separation and Distribution Agreement shall govern any and all claims for indemnification under this Agreement.

 

ARTICLE VIII
 TRANSITION COMMITTEE

 

Section 8.01.                          Establishment.  Pursuant to the Separation and Distribution Agreement, a Transition Committee is to be established by Johnson Controls and Adient to, among other things, monitor and manage matters arising out of or resulting from this Agreement.  Without limiting the generality of the foregoing, each Party shall cause each member of the Transition Committee who is an employee, agent or other Representative of such Party to work in good faith to resolve any Dispute arising out of or relating in any way to this Agreement.

 

ARTICLE IX
 MISCELLANEOUS

 

Section 9.01.                          Mutual Cooperation.  Each Party shall, and shall cause its Subsidiaries to, cooperate with the other Party and its Subsidiaries in connection with the performance of the Services hereunder; provided, that such cooperation shall not unreasonably disrupt the normal operations of such Party or its Subsidiaries; and, provided, further, that this Section 9.01 shall not require such Party to incur any out-of-pocket costs or expenses, unless and except as expressly provided in this Agreement or otherwise agreed to in writing by the Parties.

 

Section 9.02.                          Further Assurances.  Subject to the terms of this Agreement, each Party shall take, or cause to be taken, any and all reasonable actions, including the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby.

 

Section 9.03.                          Audit Assistance.  Each of the Parties and their respective Subsidiaries are or may be subject to regulation and audit by a Governmental Authority (including a Tax Authority), standards organizations, customers or other parties to contracts with such Parties or their respective Subsidiaries under applicable Law, standards or contract provisions.  If a Governmental Authority, standards organization, customer or other party to a contract with a Party or its Subsidiary exercises its right to examine or audit such Party’s or its Subsidiary’s books, records, documents or accounting practices and procedures pursuant to such applicable Law, standards or contract provisions, and such examination or audit relates to the Services, then the other Party shall provide, at the sole cost and expense of the requesting Party, all assistance

 

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reasonably requested by the Party that is subject to the examination or audit in responding to such examination or audit or requests for Information, to the extent that such assistance or Information is within the reasonable control of the cooperating Party and is related to the Services.

 

Section 9.04.                          Title to Intellectual Property.  Except as expressly provided for under the terms of this Agreement, the other Ancillary Agreements or the Separation and Distribution Agreement, the Recipient acknowledges that it shall acquire no right, title or interest (including any license rights or rights of use) in any Intellectual Property which is owned or licensed by the Provider, by reason of the provision of the Services hereunder.  The Recipient shall not remove or alter any copyright, trademark, confidentiality or other proprietary notices that appear on any Intellectual Property owned or licensed by the Provider, and the Recipient shall reproduce any such notices on any and all copies thereof.  The Recipient shall not attempt to decompile, transform, reverse engineer or make excessive copies of any Intellectual Property owned or licensed by the Provider, and the Recipient shall promptly notify the Provider of any such attempt, regardless of whether by the Recipient or any Third Party, of which the Recipient becomes aware.

 

Section 9.05.                          Independent Contractors.  The Parties each acknowledge and agree that they are separate entities, each of which has entered into this Agreement for its own independent business reasons.  The relationships of the Parties hereunder are those of independent contractors and nothing contained herein shall be deemed to create a joint venture, partnership or any other relationship between the Parties.  Employees performing Services hereunder do so on behalf of, under the direction of, and as employees of, the Provider, and the Recipient shall have no right, power or authority to direct such employees, unless otherwise specified with respect to a particular Service on the Schedules hereto.

 

Section 9.06.                          Counterparts; Entire Agreement; Corporate Power.

 

(a)                                 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.

 

(b)                                 This Agreement, the Separation and Distribution Agreement and the other Ancillary Agreements and the exhibits, schedules and appendices hereto and thereto contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein or therein.

 

(c)                                  Johnson Controls represents on behalf of itself and, to the extent applicable, each of its Subsidiaries, and Adient represents on behalf of itself and, to the extent applicable, each of its Subsidiaries, as follows:

 

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(i)                                     each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and

 

(ii)                                  this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms hereof.

 

(d)                                 Each Party acknowledges and agrees that delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this Agreement.  Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF)) made in its respective name as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is not adequate to bind such Party to the same extent as if it were signed manually and delivered in person and agrees that, at the reasonable request of the other Party at any time, it will as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to be as of the date of the initial date thereof) and delivered in person, by mail or by courier.

 

Section 9.07.                          Governing Law.  This Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of New York irrespective of the choice of laws principles of the State of New York (other than Section 5-1401 and Section 5-1402 of the General Obligations Law of the State of New York) including all matters of validity, construction, effect, enforceability, performance and remedies.  Each of Johnson Controls and Adient, on behalf of itself and the members of its Group, hereby irrevocably (a) agrees that any Dispute shall be subject to the exclusive jurisdiction of any federal court sitting in the Borough of Manhattan in The City of New York (or, only if such court lacks subject matter jurisdiction, in any New York State court sitting in the Borough of Manhattan in The City of New York), (b) waives any claims of forum non conveniens, and agrees to submit to the jurisdiction of such courts, as provided in New York General Obligations Law § 5-1402, (c) agrees that service of any process, summons, notice or document by United States registered mail to its respective address set forth in Section 9.10 shall be effective service of process for any litigation brought against it in any such court or for the taking of any other acts as may be necessary or appropriate in order to effectuate any judgment of said courts and (d) UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE.

 

Section 9.08.                          Assignability.

 

(a)                                 This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided, that neither Party may assign its rights or delegate its obligations under this Agreement by operation of law or otherwise 

 

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without the express prior written consent of the other Party.  Notwithstanding the foregoing, no such consent shall be required for the assignment of a Party’s rights and obligations under the Separation and Distribution Agreement, this Agreement and the other Ancillary Agreements in whole (i.e., the assignment of a Party’s rights and obligations under the Separation and Distribution Agreement, this Agreement and all the other Ancillary Agreements all at the same time) in connection with a change of control of a Party so long as the resulting, surviving or transferee Person assumes all of the obligations of the relevant party thereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party.  Nothing herein is intended to, or shall be construed to, prohibit either Party or any of its Subsidiaries from being party to or undertaking a change of control.

 

(b)                                 If there occurs a divestiture or other disposition of any Subsidiary, division or business that is a Recipient or Provider of Services (a “Divested Business”), the Party that is divesting or disposing of such Divested Business shall assign all of its rights and obligations under this Agreement, in respect of the Divested Business, to the Person that acquired control of such Divested Business (such Person, the “Divested Business Acquirer”), without any requirement to obtain the consent of the other Party, and the Party that is divesting or disposing of the Divested Business shall cause the Divested Business Acquirer to accept in writing the terms of this Agreement and the applicable Services with respect to such Divested Business and, to the extent that the Divested Business is a Provider of Services, assume the applicable obligations of the Provider under this Agreement.

 

Section 9.09.                          Third-Party Beneficiaries.  Except as provided in Article VII with respect to the Provider Indemnitees in their capacities as such, (a) the provisions of this Agreement are solely for the benefit of the Parties and are not intended to confer upon any other Person (except the Parties) any rights or remedies hereunder; and (b) there are no other third-party beneficiaries of this Agreement and this Agreement shall not provide any other Third Party with any remedy, claim, Liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.

 

Section 9.10.                          Notices.  All notices, requests, claims, demands or other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 9.10):

 

If to Johnson Controls, to:

 

Johnson Controls plc
 5757 North Green Bay Avenue
 Milwaukee, Wisconsin  53209
 Attn:  General Counsel
 Facsimile:                                         414-524-2299

E-mail:                                                        CO-General.Counsel@jci.com

 

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If to Adient, to:

 

Adient plc
 833 East Michigan Street
 Milwaukee, Wisconsin 53202
 Attn:  General Counsel
 Facsimile:                                         [·]
 E-mail:                                                        [·]

 

Any Party may, by notice to the other Party, change the address to which such notices are to be given.

 

Section 9.11.                          Severability.  If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.  Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.

 

Section 9.12.                          Force Majeure.  No Party shall be deemed in default of this Agreement for any delay or failure to fulfill any obligation hereunder (other than the obligation to pay money for Charges and Early Termination Charges, if any, incurred) so long as and to the extent to which any delay or failure in the fulfillment of such obligations is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure.  In the event of any such excused delay, the time for performance (other than the obligation to pay money for Charges and Early Termination Charges, if any, incurred) shall be extended for a period equal to the time lost by reason of the delay unless this Agreement has previously been terminated under Article V.  A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such Force Majeure, (a) provide written notice to the other Party of the nature and extent of any such Force Majeure; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement as soon as reasonably practicable (and in no event later than the date that the affected Party resumes providing analogous services to, or otherwise resumes analogous performance under any other agreement for, itself, its Affiliates or any Third Party), unless this Agreement has previously been terminated under Article V.  The Recipient shall be relieved of the obligation to pay Charges for the affected Service(s) throughout the duration of such Force Majeure.  If any Force Majeure prevents, hinders, or delays the performance by the Provider, the Recipient may procure the affected Services from an alternate source, including the Recipient’s personnel (with the Provider reimbursing the Recipient for the cost of procuring the affected Services from such alternate source) throughout the duration of such Force Majeure, and the Provider shall cooperate in good faith with, provide any required Information to, and take such other action as may be reasonable required to enable such alternate source to provide the affected Services.

 

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Section 9.13.                          Headings.  The Article, Section and Paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 9.14.                          Survival of Covenants.  Except as expressly set forth in this Agreement, the covenants, representations and warranties and other agreements contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Effective Time and shall remain in full force and effect thereafter.

 

Section 9.15.                          Waivers of Default.  Waiver by any Party of any default by the other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the waiving Party.  No failure or delay by any Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege.

 

Section 9.16.                          Dispute Resolution.

 

(a)                                 In the event of any controversy, dispute or claim arising out of or relating to any Party’s rights or obligations under this Agreement (whether arising in contract, tort or otherwise), calculation or allocation of the costs of any Service or otherwise arising out of or relating in any way to this Agreement (including the interpretation or validity of this Agreement) (a “Dispute”) and (ii) is not resolved by the Transition Committee after a reasonable period of time, such Dispute shall be resolved in accordance with the dispute resolution process referred to in Article VII of the Separation and Distribution Agreement.

 

(b)                                 In any Dispute regarding the amount of a Charge or an Early Termination Charge, if such Dispute is finally resolved by the Transition Committee or pursuant to the dispute resolution process set forth or referred to in Section 9.16(a) and it is determined that the Charge or the Early Termination Charge, as applicable, that the Provider has invoiced the Recipient, and that the Recipient has paid to the Provider, is greater or less than the amount that the Charge or the Early Termination Charge, as applicable, should have been, then (i) if it is determined that the Recipient has overpaid the Charge or the Early Termination Charge, as applicable, the Provider shall within thirty (30) business days after such determination reimburse the Recipient an amount of cash equal to such overpayment, plus the Interest Payment, accruing from the date of payment by the Recipient to the time of reimbursement by the Provider; and (ii) if it is determined that the Recipient has underpaid the Charge or the Early Termination Charge, as applicable, the Recipient shall within thirty (30) business days after such determination reimburse the Provider an amount of cash equal to such underpayment, plus the Interest Payment, accruing from the date such payment originally should have been made by the Recipient to the time of payment by the Recipient.

 

Section 9.17.                          Specific Performance.  Subject to Section 9.16, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or Parties who are, or are to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief (on an interim or permanent basis) in respect of its rights or their rights under this Agreement, in addition to any and all other rights 

 

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and remedies at law or in equity, and all such rights and remedies shall be cumulative.  The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, may be inadequate compensation for any loss and that any defense in any Action for specific performance that a remedy at law would be adequate is waived.  Any requirements for the securing or posting of any bond with such remedy are hereby waived by each of the Parties.  Unless otherwise agreed to in writing, the Parties shall continue to provide Services and honor all other commitments under this Agreement during the course of dispute resolution pursuant to the provisions of Section 9.16 and this Section 9.17 with respect to all matters not subject to such Dispute; provided, that this obligation shall only exist during the term of this Agreement.

 

Section 9.18.                    Amendments.  No provisions of this Agreement or any Ancillary Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment (including any extension of the term of any Service), supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification.

 

Section 9.19.                          Precedence of Schedules.  Each Schedule attached to or referenced in this Agreement is hereby incorporated into and shall form an integral part of this Agreement; provided, that the terms contained in such Schedule shall only apply with respect to the Services provided under that Schedule. In the event of a conflict between the terms contained in an individual Schedule and the terms in the body of this Agreement, the terms in the Schedules shall take precedence with respect to the Services under such Schedule only.  No terms contained in individual Schedules shall otherwise modify the terms of this Agreement.

 

Section 9.20.                    Interpretation.  In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules, Annexes and Exhibits hereto) and not to any particular provision of this Agreement; (c) Article, Section, Exhibit, Annex and Schedule references are to the Articles, Sections, Exhibits, Annexes and Schedules to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such agreement; (e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions are generally authorized or required by law to close in Ireland, the United States or the United Kingdom; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to [·], 2016.

 

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Section 9.21.                          Mutual Drafting.  This Agreement shall be deemed to be the joint work product of the Parties and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable to this Agreement.

 

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

 

	
 
    	
JOHNSON CONTROLS PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ADIENT PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Transition Services Agreement]

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