Document:

Exhibit 10.29

[***] — Certain information in this exhibit have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

SUPPLY
AND LICENSE AGREEMENT

This
Agreement is entered into on 1 August 2003 (“Effective Date”), by and between
Heska Corporation, a Delaware corporation, having a principal place of business
at 1613 Prospect Parkway, Fort Collins, Colorado 80525 (“Heska”) and
Schering-Plough Animal Health Corporation, a Delaware corporation, having a
place of business at 1095 Morris Avenue, Union, New Jersey 07083-1982 (“Schering”).

WHEREAS, Heska is
engaged in the development, manufacture, marketing and sale of products for use
in animal health and has the capability of manufacturing such products for
third parties;

WHEREAS, Schering
is engaged in the business of developing, manufacturing, marketing and sale of
certain veterinary products;

WHEREAS, Schering
desires Heska to supply the Product (as defined below) for the exclusive
marketing and sales by Schering in the veterinary channel; and

WHEREAS, the
Parties (as defined below) anticipate the commercial launch of the Product in
September or October, 2003.

NOW, THEREFORE, in
consideration of the mutual covenants set forth in this Agreement, the Parties
hereby agree as follows:

1.                                       Definitions

1.1  “Adverse Event” shall mean: (a) any
unexpected or expected side effect, injury, toxicity or sensitivity reaction
associated with the clinical use, studies, investigations or tests of the
Product, whether or not attributable to the Product; (b) any unexpected side
effects, injury, toxicity, sensitivity reaction or any unexpected incidence or
severity thereof occurring in humans from exposure during the manufacture,
testing, or handling of any Product; or (c) any failure of the Product to
exhibit its expected pharmacological activities.

1.2  “Affiliate” shall mean: (a) a business entity
that owns, directly or indirectly, a controlling interest in a Party to this Agreement,
by stock ownership or otherwise; or (b) a business entity that is majority
owned by a Party to this Agreement, either directly or indirectly, by stock
ownership or otherwise; or (c) a business entity, the majority ownership of
which is directly or indirectly common to the majority ownership of a Party to
this Agreement.  The term “control” as
used herein shall mean the direct or beneficial ownership of greater than fifty
percent (50%) of the voting share capital of such corporation or business entity.

 1
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

1.3  “Calendar Year” shall mean, with respect to
the first Calendar Year, the period commencing on the Effective Date and ending
on December 31 of the same year.  The
second and all subsequent Calendar Years shall commence on January 1 and end on
December 31 of each year thereafter.  “Calendar
Quarter” shall mean each three (3) month period ending on the last day of
March, June, September and December.

1.4   “Effective Date” shall mean the date first
noted above.

1.5   “FDA”
shall mean the United States Department of
Food and Drug Administration.

1.6   “Heska”
shall mean Heska Corporation and its Affiliates.

1.7   [***]

1.8   “Party or Parties” shall
mean Heska and/or Schering as the context indicates.

1.9   [***] set forth in Appendix D.

1.10  [***]

1.11  “Product” shall mean the chewable tablets for
dogs (ivermectin and pyrantel in proprietary, highly palatable tablet-based
formulation) under ANADA No. 200-338.

1.12  “Product
Quality Complaint” shall mean: (a) information that causes the Product or its
labeling to be mistaken for, or applied to, another article; (b) information
concerning any bacteriological contamination, or any significant chemical,
physical, or other change or deterioration in the Product, or any failure of
one of more distributed batches of the Product to meet the specifications set
forth in Appendix B; or (c) any other product quality complaint that is related
to the Product’s identity, strength, quality, or purity or that alleges a
product defect.

1.13  “Responsible
Person” shall mean the individual designated by Schering or Heska from time to
time, who has responsibility for ensuring compliance with (a) the Adverse Event
and Product Quality Complaint requirements, (b) requirements of 21 CFR §
510.300 and 21 CFR § 514.80, and (c) quality assurance requirements on behalf
of Schering and Heska for the Product.

1.14  “Schering” shall mean Schering-Plough Animal
Health Corporation and its Affiliates, if any.

 2
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

1.15  “Territory” shall mean the United States, its
territories, commonwealths and possessions.

1.16  “Veterinarians” shall mean veterinarians,
veterinary clinics and veterinary hospitals that will provide the Product only
to their patients in a situation in which there is a doctor-patient
relationship between a veterinarian and the patient with respect to the
Product.  Veterinarians also shall
include veterinary distributors and e-commerce outlets that sell the Product
under a prescription to veterinarians, veterinary clinics and veterinary
hospitals.

2.                                       Supply of Product

2.1                                 Supply.

(a)           During the term of this Agreement,
Heska shall be the exclusive supplier of the Product to Schering solely for the
exclusive distribution and sale of the Product by Schering to Veterinarians in
the Territory.  Schering shall have the
right to [***] with its sale of the Product in the Territory.

(b)           [***]

(c)           [***]

2.2           Forecasts.  At least thirty (30) days prior to each
Calendar Quarter, Schering shall provide Heska with a rolling forecast of the
quantity of the Product that will be needed by Schering for each of the next
twelve (12) months. Each forecast shall specify the estimated requirements for
the Product by month, with anticipated shipment dates specified for the first
four (4) months of each forecast.  The
balance of the forecast shall represent reasonable estimates for planning
purposes and shall not obligate Schering to purchase or Heska to supply the
specified quantities.

2.3           Purchase Orders.  Schering shall submit to Heska a firm written
purchase order specifying the types, quantities and shipment date of the
Product that it desires to purchase at least one hundred and twenty (120) days
prior to the requested shipment date. 
Heska will review each written purchase order within ten (10) business
days of receipt and issue either a written confirmation of acceptance or its
proposed modification in writing, including, without limitation, a modified
shipment date to accommodate Heska’s scheduling requirements.  Should the modification be unacceptable,
Schering shall notify Heska in writing of its intent to cancel the purchase
order within ten (10) business days from the receipt of Heska’s proposed
modification.  If Schering does not
provide Heska with a written notice (including, without limitation, electronic
mail) of its intent to cancel within the specified time period, the
modification shall be deemed accepted by Schering.  Schering may not cancel purchase orders for
the Product that have been formally

 3
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

accepted by Heska.
Notwithstanding the foregoing, Heska hereby represents that it shall, at all
times, use commercially reasonable efforts to diligently complete and ship (or
cause to be diligently completed and shipped) any such purchase orders of
Schering.  In the event that Heska allows
an extended backorder of the Product for a period of more than sixty (60) days,
except in the case of a force majeure event as defined in Section 9.8 hereof,
Heska shall provide Schering with a discount of ten percent (10%) for such
purchase order.  Should the backorder
extend to more than ninety (90) days, Heska shall provide Schering with a
discount of twenty percent (20%) for such purchase order. Notwithstanding the
foregoing, Product shipment dates for purchase orders with a 2003 shipment date
shall not be subject to the discounts set forth herein, although Heska shall
use commercially reasonable efforts to ship such Product under a schedule
mutually agreed to by the Parties.

2.4           Shipment and Delivery.  The Product shall be shipped in accordance
with Schering’s written instructions provided in each purchase order accepted
by Heska and to the location designated by Schering.  With respect to all purchase orders, title to
the Product and the risk of loss, theft, destruction or damage to the Product
shall pass from Heska to Schering upon delivery of the Product to the common
carrier designated for shipment.

2.5           Acceptance and Rejections.

(a)           Each shipment of the Product to
Schering shall be accompanied by a certificate of analysis.  The certificate shall be issued in compliance
with the specifications set forth in Appendix B, a copy of which is attached
hereto and made a part hereof, which specifications shall be used for the
acceptance or rejection of the Product by Schering.

(b)           Schering shall inform Heska in
writing of its rejection of any Product for visible defects within five (5)
business days after receipt of the Product and shall specify the basis for the
rejection.  If the basis for the
rejection is mutually agreed to by the Parties, Schering may return the Product
at Heska’s expense for refund or credit, such choice of refund or credit to be
at the choice of Heska.  Failure by
Schering to reject a shipment of the Product in accordance with this Section
2.5(b) shall be deemed to be an acceptance of the Product.

2.6           Minimum Purchase Sizes.  The minimum purchase size per purchase order
shall be as specified in Appendix A, a copy of which is attached hereto and
made a part hereof.

2.7           [***]

2.8           Recalls.  In the event: 
(i) any government authority issues a request, directive or order that
the Product be recalled, or (ii) a court of competent jurisdiction 

 4
 

orders such a recall, or (iii) Heska or Schering
reasonably determines that the Product should be recalled because such Product
does not conform to the specifications identified in Appendix B hereof, the
Parties shall take all appropriate corrective action reasonably requested by
the other Party, by any government agency or by any court order, as the case
may be.  In the event such recall results
from the fault of a Party, such Party shall pay all costs associated with the
recall.  For purposes of this Agreement,
the expenses of a recall shall mean all reasonable expenses of notification and
destruction, all reasonable processing and transportation costs of both Parties
in the return of the recalled Product, and the cost of the replacement Product
if and when available.

2.9           Maintenance of Regulatory
Approval.  Heska shall be solely
responsible for all costs, filings, studies or other actions required to obtain
and maintain regulatory approval allowing for the sale and distribution of the
Product in the Territory during the period of time that Heska is the exclusive
supplier of Schering’s requirements for the Product.  Schering shall provide reasonable,
non-financial assistance as requested by Heska for such purpose.

2.10         Labels.  Heska shall pay the cost of obtaining
approved labels for the Product and shall provide such labels with the Product
for sale and distribution by Schering. 
The Parties hereby agree that any modification which reflects (a) a
change of the company name or logo from Heska to Schering, and/or (b) an
addition of the company name or logo of Schering, on or to the packaging or
labeling of the Product shall be made at no cost to Schering as long as
Schering shall provide Heska with the artwork for any such change or
addition.  Should Schering wish to make
any other substantive changes to the labels provided by Heska, Schering shall
pay for all costs associated with obtaining regulatory approval of and
producing such modified labels.

2.11         No Modification or Analysis of
Product.  Unless otherwise agreed by
Heska in writing, Schering shall not: 
(a) sell the Product other than in its original, unmodified, and unused
condition, (b) remove, obscure or modify any label supplied by Heska, (c)
add any label or mark to any Product without the prior written consent of
Heska, nor (d) promote any Product under any name or mark other than the
names and trademarks provided by Heska without the prior written consent of
Heska.  Schering acknowledges that the
Product formulation is a trade secret and agrees not to analyze the Product,
nor have the Product analyzed, for purposes of identifying the Product
formulation.  Notwithstanding the
foregoing, Schering shall have the right to have the Product analyzed by an
independent third party for purposes of complying with applicable laws, if and
whenever necessary, with the prior written consent of Heska, which consent
shall not be unreasonably withheld, provided that the independent third party
only discloses whether the Product complies with applicable laws and will not
disclose any confidential information pertaining to the identification of the
Product formulation.

2.12         Resale.  Nothing in this Agreement shall restrict
Schering’s right to determine the resale price of the Product to Veterinarians
in the Territory.

 5
 

2.13         Sales Efforts.  Schering shall use commercially reasonable
efforts to develop and promote the sale and distribution of the Product to
Veterinarians in the Territory.  Such
activities shall include incorporating the Product into Schering’s promotional
literature, provided that Schering shall furnish Heska with copies of all such
promotional materials.  Schering
represents and warrants it shall not intentionally advertise or promote any
false or misleading information about the Product.

2.14         Customer Support.  Schering shall maintain throughout the
Territory customer service phone support to explain the labeled uses of the
Product.

2.15                           Document and
Reserve Sample Retention.

(a)           All
documents, records and reports associated with the manufacture, holding,
storage, packaging or testing of the Product at Heska’s facility or on behalf
of Heska shall be retained by or on behalf of Heska for not less than five (5)
years from the date of manufacture, or as otherwise directed by Schering if
less than five (5) years.  All such
documents, records and reports must be prepared and retained by Heska in
accordance with 21 C.F.R. § 211.180 and in such a manner that they are (i)
readily retrievable and (ii) stored in an environment suitable to prevent
damage or loss.  Heska shall provide
copies of all such documents and reports to Schering as reasonably requested
and as set forth in Section 5.3 hereof.

(b)           Heska
shall retain in accordance with 21 C.F.R. § 211.170 reserve samples of the
Product that are representative of each lot in each shipment of the Product.

2.16         Packaging Requirements. Unless
otherwise specified by Schering, Heska shall package and pack the contents of
each purchase order in a manner that is: (a) in accordance with good commercial
practice, (b) acceptable to common carriers for shipment, and (c) adequate to
insure safe arrival of the goods at the named destination. Heska shall mark all
containers and packaging with the necessary lifting, handling and shipping
information.  Each shipment shall be
accompanied by a packing slip, which shall include the applicable purchase order
number.

2.17                 Adverse Events and Product Quality Complaints.

 A.                   Adverse
Event.  

(a)           Heska and Schering shall notify the
other Party in writing (including, without limitation, electronic mail) of any
Adverse Event that either Party becomes aware of from any source and in any
form relating to the Product within three (3) business days of receiving that
information by transmitting it to the Responsible Person at Schering or Heska,
as appropriate.  All such information
shall be transmitted in English to the Responsible Person of each Party in accordance
with such instructions as the Responsible Person of each Party shall provide to
the other Party from time to time.   Such
notice shall include the name, address, and 

 6
 

telephone number of the initial reporter making the complaint or report
of an Adverse Event, the Product involved, the nature of the Adverse Event, and
such other information as Schering and Heska may reasonably require.

(b)           Heska and Schering shall provide all
reasonable and necessary information and assistance to Schering in connection
with the investigation of any Adverse Event, including, without limitation, (i)
completion by Heska or Schering, as appropriate, of Schering’s form entitled “Product
Experience Form”; (ii) Schering’s requests to Heska for additional information
relating to an Adverse Event; (iii) if applicable, Heska’s requests to Schering
to contact the initial reporter of an Adverse Event; and (iv) requests to
employ one or more health care professionals to contact the initial reporter of
an Adverse Event.  Schering shall provide
Heska with the results of, and description of any action taken with respect to,
Schering’s investigation including all information required for completion of
FDA Form ED-1932 within ten (10) business days of the first notice of the
Adverse Event.

(c)           Heska and Schering shall forward to
each other all information, including, but not limited to, initial and
follow-up reports, that becomes known to either Party from any source and in
any form relating to any Adverse Event on a monthly basis by transmitting such
information to the Responsible Person of the other Party.  All such information shall be transmitted in
English to such Responsible Person in accordance with such instructions as such
Responsible Person shall provide to Heska and Schering from time to time.

(d)           The requirements of Sections
2.17A(a)-(c) hereof shall apply whether or not such information (i) would be
reportable by Schering or Heska to a governmental entity under the applicable
legal and regulatory requirements relating to Adverse Events and (ii) relates
to any Adverse Event that has already been reported to one or more governmental
entities.

(e)           Heska shall notify Schering of any
communication provided to or received from any governmental entity relating to
any Adverse Event or other safety issue for any Product, within three (3)
business day(s) of receiving such communication, by transmitting any written
communication documentation, and a written synopsis of any oral communication
to the Responsible Person at Schering as provided in Section 2.17A(a) hereof.

(f)            Heska shall promptly transmit to the
Responsible Person at Schering, upon such Responsible Party’s request, any
summary safety documents prepared regarding the Product, including, but not
limited to, periodic reports required by 21 CFR § 510.300 and 21 CFR § 514.80 within three (3)
business days of their completion.

(g)           Disclosure by Heska or Schering of
records and information concerning any Adverse Event to the other Party under
Section 2.17 hereof shall continue as long as Schering continues to market the
Product.

 7
 

(h)           Schering and Heska shall meet, in a timely fashion and
from time to time as may be reasonably required, to implement the Adverse Event
reporting and consultation procedures prescribed in this Section 2.17.

(i)            The Parties acknowledge the regulated nature of Heska’s
and Schering’s businesses and operations, and, therefore, covenant to negotiate
in good faith to make changes to this Section 2.17 as may be necessary or
appropriate to comply with changes in applicable law or regulations relating to
Adverse Event reporting, and to amend their policies and procedures to enable
each Party to comply with applicable laws and regulations and its reporting of
Adverse Event information.

(j)            The holder of the registration for the Products shall
have the sole right to make or file any report, or otherwise make any
disclosure, with respect to any Adverse Event.

B.                    Product
Quality Complaint.

(a)           Schering shall immediately upon
receipt, transmit to the Responsible Person at Heska, to the extent known by
Schering: (i) information that causes the Product or its labeling to be
mistaken for, or applied to, another article; (ii) information concerning any
bacteriological contamination, or any significant chemical, physical, or other
change or deterioration in the Product, or any failure of one or more
distributed batches of the Product to meet its specifications; or (iii) any
other product quality complaint that is related to the Products’ identity,
strength, quality or purity or alleges a product defect.

(b)           Heska shall submit immediately to the
FDA and also transmit to the Responsible Person at Schering within three (3)
business days any reports of Product Quality Complaints as required under 21
CFR 510.300 and 21 CFR § 514.80.

(c)           Heska and Schering shall, within ten
(10) calendar days of receipt, transmit to the Responsible Person of the other
Party any Product Quality Complaint not encompassed in Section 2.17B(a)-(b)
hereof.

(d)           Schering reserves the right to
handle, process, and respond to all customer technical and Product Quality
Complaints related to the Product, including complaints related to the
ingredients or components of the Product. 
Heska agrees to cooperate with Schering, at Schering’s request, to
enable Schering to investigate and respond to such complaints, but only to the
extent set forth in Section 2.17 hereof.

(e)           Notwithstanding the foregoing,
Schering shall immediately notify Heska upon Schering’s receipt of a Product
Quality Complaint or any other complaints regarding the Product.  Notification shall be given by telephone,
with a facsimile confirmation following within one (1) business day.  Schering shall, 

 8
 

at Heska’s request,
assist Heska in investigating all such complaints.  Schering shall be responsible for addressing
all complaints related to Schering’s marketing, distribution, order processing,
shipping and handling of the Product to its customers; Heska shall be
responsible for addressing all other complaints relating to the Product.  Neither Party shall have the authority to
bind the other Party in the settlement of any complaints made by a third party.

C.            Written Procedures, Recordkeeping
and Audits.

(a)           Schering and Heska shall develop and
maintain written procedures for the surveillance, receipt, evaluation, and
reporting of Adverse Event and Product Quality Complaint information for the
Products as required under 21 CFR § 510.300 and 21 CFR § 514.80.

(b)           Schering and Heska shall maintain
complaint files regarding the finished Product, the ingredients or components
thereof, and the manufacturing processes either for the finished Product or
that may relate to the quality of the finished Product or its ingredients or
components.

(c)           Each Party shall maintain records of
information concerning all Adverse Events for the Product for a period of at
least five (5) years.   Each Party shall
maintain records of information concerning Product Quality Complaints for the
Product for a period of at least three (3) years.  Each Party shall provide the other Party with
reasonable access to all information in the other Party’s possession or control
relating to Adverse Events and Product Quality Complaints within five (5)
business days of receiving the information; provided, however,
any access by Schering shall not include any information pertaining to the
identification of the Product formulation.

(d)           Each Party shall allow access to its
facilities, systems, personnel, and records, in whatever form and in any
location (including locations owned and operated by a third-party), as
reasonably necessary to enable the other Party, and any third party designated
by the other Party, to evaluate and ensure compliance with this Section 2.17,
with 21 CFR § 510.300 and 21 CFR § 514.80, and with any other applicable legal
or regulatory requirements provided, however, any access by
Schering shall not include any information pertaining to the identification of
the Product formulation.

D.            Marketing Materials. Schering
shall be responsible for filing advertising, mailing pieces, and any labeling
devised for the promotion of the Product at the time of dissemination or
publication or at other intervals as required by 21 CFR § 510.300 and 21 CFR §
514.80.  Schering shall provide Heska
with copies of such filings and reports within five (5) business days.

 

 9

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

3.             Trademarks

3.1           [***]

3.2           Trademark Warranty.  Heska warrants and represents that to the best
of its knowledge (a) the Trademark is not involved  in any pending or threatened lawsuit in the
Territory, (b) Heska has not received any written notice of infringement of the
rights of others with respect to the Trademark, (c) no other firm, corporation,
association or person has the right to use the Trademark on the goods on which
they are now being used in identical form or in such near resemblance thereto
as to be likely, when applied to the goods of any such firm, corporation,
association or person to cause confusion with the Trademark, and (d) no third
party is claiming any ownership or right to use said Trademark.

3.3           [***]

3.4           Schering’s License and Use.  Heska grants to Schering, a non-exclusive
license (with right to sublicense) the right to use Heska’s name and logo in
connection with the promotion, distribution and sale of the Product in the
Territory during the term of this Agreement in accordance with applicable laws
and Heska’s policies regarding advertising and trademark usage as established
and amended by Heska from time-to-time. 
Moreover, Schering shall include Heska’s name and logo in any
literature, promotional materials or advertising which Schering produces or
distributes concerning the Product.  In
addition, Schering shall not use Heska’s name and logo other than with respect
to the direct promotion and sales of the Product.

3.5           Ownership of Trademarks.  Each Party acknowledges that subject to the
terms of this Agreement, the licensed trademarks, names and logos are and shall
remain the sole property of the respective Parties as identified herein and
agrees not to do anything inconsistent with that ownership or to contest the
ownership thereof.  Each Party further
agrees that all use of the licensed trademarks, trade names and logos by it
shall inure to the benefit of, and be on behalf of, the Party owning such
trademarks, trade names and logos.

4.             Fees,
Prices and Payment

4.1           License Fee.   Schering agrees to pay Heska a one-time fee
of [***], which sum shall be non-refundable and non-creditable toward any
payments specified herein, due and payable upon FDA approval of the Product in
the Territory.  Payment shall be made by
wire transfer to: Wells Fargo Bank, 633 Seventeenth Street, Denver, CO 80202
RTN#: 121000248, Acct# 4496-860776, Account Name: Heska Corporation - Lockbox Account.

 10
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

4.2           Prices.

(a)           Heska shall supply the Product to
Schering at the transfer prices set forth in Appendix A, a copy of which is
attached hereto and made a part hereof, through the first anniversary of the Effective
Date.  Thereafter, Heska reserves the
right, upon at least one hundred and twenty (120) days’ written notice to
Schering, which notice shall be furnished to Schering prior to the beginning of
the next Calendar Year, to increase or decrease the price once per Calendar
Year to reflect any increase or decrease in raw material and/or direct labor
costs, provided any increase due to direct labor costs shall not be more than
the annual increase of the Consumer Price Index during the preceding year.

(b)           Notwithstanding Section 4.2(a)
hereof, the current transfer prices of any of the three (3) sizes of the
Product shall be changed only upon the following conditions: (i) [***], or (ii)
[***].  Any reduction due to (i) or (ii)
hereof shall become [***] for purposes of determining future price reductions
or increases under this Section 4.2(b).

If either condition under
(i) or (ii) above occurs, Schering shall notify Heska in writing and provide
reasonable written documentation of such condition.  If accepted by Heska, which acceptance shall
not be unreasonably withheld, then the current transfer prices of the affected
tablet size(s) of the Product shall be reduced by Heska [***], then the current
transfer price of the respective tablet size(s) of the Product shall increase
by such percentage up to, but no higher than, the respective transfer price(s)
set forth in Appendix A or as amended per Section 4.2(a).

(c)           All prices are F.O.B. Heska and are
exclusive of any federal, state, county or municipal sales or use tax, excise,
customs charges, duties or similar charge, or any other tax assessment (other
than taxes assessed against Heska’s income), insurance, license fee (excluding
regulatory license fees), or other similar charge lawfully assessed or charged
on the sale or transportation of the Product, all of which shall be the
responsibility of Schering.

4.3           Payment.  Schering shall pay Heska within forty-five
(45) days of receipt of each invoice for the Product supplied by Heska.  Any late payments of invoices or other
payments to be paid by Schering under this Agreement shall be subject to
interest at the annual prime rate plus two and a half percent (2.5%).

4.4           United States Dollars.  All fees, prices and payments shall be in
United States Dollars.

 11
 

5.             Warranties,
Audits and Indemnification

5.1                                 Product Warranty.

(a)           Heska warrants that the Product
supplied under this Agreement shall meet the specifications set forth in
Appendix B hereof.  HESKA MAKES NO OTHER
WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE PRODUCT.  ALL OTHER WARRANTIES, EXPRESS OR IMPLED,
INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED.

(b)           If the Parties determine that the
Product fails to meet the specifications set forth in Appendix B hereof and
such failure is not the fault of Schering, then Schering may return the
defective Product at Heska’s expense for a refund or credit, at Heska’s sole
option.

(c)           Heska represents, warrants, and
covenants that the Product sold to Schering pursuant to this Agreement shall:
(i) be manufactured, packaged, and labeled in accordance with Good
Manufacturing Practices, any substantive equivalent of Good Manufacturing
Practices in the Territory, the specifications of Appendix B hereof, and the
terms of this Agreement; (ii) be free of all defects and deleterious materials;
(iii) not be adulterated or misbranded under the provisions of the Federal Food
and Drug Cosmetic Act, as amended by the FDA Modernization Act of 1997; (iv) be
manufactured, packaged, and tested to ensure that the Product meets the
specifications of Appendix B hereof for identity, potency, quality, purity, and
stability; (v) be manufactured in accordance with the quality control program
which Heska shall maintain during the term and any subsequent term of this
Agreement; (vi) bear a true and accurate expiration date as set forth in the
specifications of Appendix B hereof; and (vii) have, as of the date of receipt
of such Product at the facility of Schering, a remaining shelf life of not less
than three (3) months shorter than the total stated shelf life of such Product
as set forth in Section 5.1(c)(vi) above.  Heska shall use its best
efforts to extend the expiration date to a total stated shelf-life consistent
with the total stated shelf life of HEARTGARDâ Plus
for dogs manufactured by Merial Limited, as determined by stability studies,
such studies to begin with the first three (3) lots of Product produced under
this Agreement.  For purposes of this
Agreement, the term “Good Manufacturing Practices” shall mean all laws,
regulations, and other applicable quality standards for manufacture,
production, or other handling of the Product, as established under applicable
laws, including, without limitation, the current Good Manufacturing Practices
now or hereafter in effect and as amended from time to time by any governmental
authority in the Territory.

(d)           Heska
shall notify Schering in writing in the event Heska changes or causes to be
changed any materials, equipment, or method of production or testing relating
to the Product; provided, however, that any such change shall
also comply

 12
 

in all respects with Good
Manufacturing Practices, any substantive equivalent of Good Manufacturing
Practices in the Territory, the specifications set forth in Appendix B hereof,
and applicable laws.

5.2           No Conflicts.  Each Party warrants and represents that the
terms of this Agreement do not conflict with any contractual obligations,
express or implied, with any third party.

5.3           Audits.  Schering shall have access to Heska’s
offices, facilities (including Heska’s manufacturing site) and records at a
mutually agreeable time for the sole purpose of (a) inspecting any such
facility relating to or otherwise involved in the manufacture, packaging,
testing, storage, or inventory of the Product, (b) conducting a physical
inventory of Heska’s inventory of the Product, and (c) reviewing and auditing
Heska’s files and records with respect to the manufacture of the Product, to
ensure compliance with regulatory or government regulations.  Such access shall be at most once per twelve
(12)-month period unless requested by Schering for reasonable cause.  Such access shall in no way give Schering the
right to any of Heska’s confidential or proprietary information.  In the event Schering reasonably determines,
based on such an inspection, that Heska’s facility has deficiencies with
respect to Good Manufacturing Practices, Heska agrees to consult with Schering
within ten (10) business days of written notification from Schering of such
deficiencies to determine whether any of such deficiencies is recognized as
such by the FDA and agrees to work with Schering to put in place and implement
a plan to correct such FDA-recognized deficiencies in a timely manner.  Heska agrees to notify Schering, in writing,
within two (2) business days, of any governmental authority inspection,
inquiry, or notification related to the Product and shall keep Schering
informed of the progress of such inquiry or notification.

 13
 

5.4           Indemnification.

(a)           Indemnification
by Schering.  Schering shall, at its
cost and expense, indemnify, defend, and forever hold harmless Heska, its
Affiliates, and its and their respective Agents from and against any claims,
suits, actions, proceedings, damages, losses, liability, costs, and expenses,
including reasonable attorneys’ fees (collectively, “Claim”) arising out of or
resulting from (i) Schering’s breach of its obligations, representations, or
warranties under this Agreement, or (ii) Schering’s negligence, errors, or
omissions.  Heska shall, within three (3)
business days from the date of receipt of notice of any Claim, furnish to
Schering a copy of such notice and inform Schering of all facts relating to
such Claim.

(b)           Indemnification
by Heska. Heska shall, at its cost and expense, indemnify, defend, and
forever hold harmless Schering, its Affiliates, and its and their respective
Agents from and against any Claim arising out of or resulting from (i) Heska’s
breach of its obligations, representations, or warranties under this Agreement,
or (ii) Heska’s negligence, errors, or omissions.  Schering shall, within three (3) business
days from the date of receipt of notice of any Claim, furnish to Heska a copy
of such notice and inform Heska of all facts relating to such Claim.

(c)           Assistance.  Each Party shall provide all information in
its possession and reasonable assistance to the other Party as necessary to
enable the other Party to defend any such suit, claim, or demand.

(d)           Consequential Damages.  Neither Party shall be liable to the other
Party for any special or consequential damages, whether based upon lost
goodwill, lost resale profits, work stoppage, or impairment of other goods or
arising out of breach of warranty, breach of contract, strict liability, or
negligence.

5.5           Limits of Liability.  IN NO EVENT WILL EITHER
PARTY BE LIABLE FOR LOST PROFITS, OR ANY OTHER SPECIAL, PUNITIVE, INDIRECT,
CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF
LIABILITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.  THIS LIMITATION
SHALL APPLY EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES, AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY.

5.6           Representations of Schering.  Schering hereby represents and warrants to
Heska that, as of the date of this Agreement, the following statements are and
shall be true and correct in all material respects:

(a)           Organization and Good Standing.  Schering: 
(i) is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Delaware; (ii) has the corporate power
and authority to conduct the business in

 14
 

which it presently
is engaged, to enter into this Agreement, and to perform its obligations hereunder;
and (iii) is qualified to do business in, and is in good standing in, each
jurisdiction of the Territory where the nature of its business in such
jurisdiction requires it to be so qualified.

(b)           Authorization and Binding Effect.  All corporate action on the part of Schering
and its officers and directors necessary for the authorization, execution, and
delivery of this Agreement and for the performance of all of Schering’s
obligations hereunder has been taken, and this Agreement, when executed and delivered,
shall constitute a legal, valid and binding obligation of Schering enforceable
against Schering in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, and other laws affecting creditors’ rights
generally or by general equitable principles.

(c)           Execution, Delivery and
Performance.  The execution,
delivery, and performance by Schering of this Agreement do not:  (i) violate or breach the certificate of
incorporation or bylaws of Schering; (ii) violate or conflict with any
applicable laws; (iii) violate, breach, cause a default under, or otherwise
give rise to a right of termination, cancellation, or acceleration with respect
to (presently, with the giving of notice or the passage of time), any
agreement, contract, or instrument to which Schering is a party or by which any
of its assets are bound; or (iv) result in creation or imposition of any lien,
pledge, mortgage, claim, charge, or encumbrance upon any assets of Schering.

(d)           Governmental and Other Consents.  Other than regulatory approval of the Product
by the FDA, no other consent, authorization, license, permit, registration or
approval of, or exemption or other action by, any entity is required in
connection with Schering’s execution and delivery of this Agreement or with the
performance by Schering of its obligations hereunder.

(e)           Inconsistent Obligations.  Schering has, as of the Effective Date, no
obligation or commitment, and will not, during the term of this Agreement,
assume or undertake any obligation or commitment, that is inconsistent with its
obligations under, or the terms and conditions of, this Agreement.

5.7           Representations of Heska.  Heska hereby represents and warrants to
Schering that, as of the date of this Agreement, the following statements are
and shall be true and correct in all material respects:

(a)           Organization and Good Standing.  Heska: 
(i) is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Delaware; (ii) has the corporate power and
authority to conduct the business in which it presently is engaged, to enter
into this Agreement, and to perform its obligations hereunder; and (iii) is
qualified to do business in, and is in good standing in, each jurisdiction of
the Territory where the nature of its business in such jurisdiction requires it
to be so qualified.

 15
 

(b)           Authorization and Binding Effect.  All corporate action on the part of Heska and
its officers and directors necessary for the authorization, execution, and
delivery of this Agreement and for the performance of all of Heska’s
obligations hereunder has been taken, and this Agreement, when executed and
delivered, shall constitute a legal, valid and binding obligation of Heska
enforceable against Heska in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, and other laws
affecting creditors’ rights generally or by general equitable principles.

(c)           Execution,
Delivery and Performance.  The
execution, delivery, and performance by Heska of this Agreement do not:  (i) violate or breach the certificate of
incorporation or bylaws of Heska; (ii) violate or conflict with any applicable
laws; (iii) violate, breach, cause a default under, or otherwise give rise to a
right of termination, cancellation, or acceleration with respect to (presently,
with the giving of notice or the passage of time), any agreement, contract, or
instrument to which Heska is a party or by which any of its assets are bound;
or (iv) result in creation or imposition of any lien, pledge, mortgage, claim,
charge, or encumbrance upon any assets of Heska.

(d)           Governmental
and Other Consents.  Other than
regulatory approval of the Product by the FDA, no other consent, authorization,
license, permit, registration or approval of, or exemption or other action by,
any entity is required in connection with Heska’s execution and delivery of
this Agreement or with the performance by Heska of its obligations hereunder.

(e)           Inconsistent
Obligations.  Heska has, as of the
Effective Date, no obligation or commitment, and will not, during the term of
this Agreement, assume or undertake any obligation or commitment, that is
inconsistent with its obligations under, or the terms and conditions of, this
Agreement.

6.             Confidential Information

6.1           Term of Confidentiality.  All confidential and/or proprietary
information relating to this Agreement and/or the Product (“Confidential
Information”) furnished by one Party (the “Disclosing Party”) to the other
Party (the “Receiving Party”) during the term of this Agreement shall be kept
confidential by the Receiving Party, except as expressly authorized by this
Agreement, and shall not be disclosed to a third party, nor shall the Receiving
Party use such Confidential Information for any purpose other than the purposes
specifically authorized under this Agreement, during the term of this Agreement
and for a period of ten (10) years from the expiration or termination of this
Agreement.  The Receiving Party may
disclose the same to its officers, agents, consultants and employees on a
need-to-know basis, provided that such officers, agents, consultants and
employees have signed appropriate confidentiality agreements.

6.2           Non-Confidential Information.  The obligations under Section 6.1 hereof
shall not apply to any information that:

 16
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

(a)           is or becomes a part of the public
domain through no fault of the Receiving Party;

(b)           was otherwise in the Receiving Party’s
lawful possession prior to its disclosure as shown by its written records;

(c)           is lawfully disclosed to the Receiving
Party by a third party purporting not to be in violation of an obligation of
confidentiality to the Disclosing Party; or

(d)           is released from confidential status
by mutual agreement of the Parties.

6.3             Requests for Confidential
Information.  If the Receiving Party
is requested or required by subpoena, court order, applicable law or
governmental agency (including, but not limited to, the Securities and Exchange
Commission, regulatory agencies and the like), or similar process to disclose
any Confidential Information of the Disclosing Party, the Parties agree that
the Receiving Party shall provide the Disclosing Party with prompt written
notice of such request or requirement so that the Disclosing Party may seek an
appropriate protective order and/or waive the Receiving Party’s compliance with
the provisions of this Article 6.

6.4           Return of Confidential
Information.  All Confidential
Information received from the Disclosing Party or generated by the Receiving
Party and containing the Confidential Information of the Disclosing Party shall
be the property of the Disclosing Party, and the Receiving Party shall deliver
all such materials to the Disclosing Party upon the earlier of the termination
of this Agreement or the request of the Disclosing Party; provided,  however,
the Receiving Party’s legal department may retain one (1) copy of Confidential
Information of the Disclosing Party for the sole purpose of identifying such
Confidential Information.

7.             Term
and Termination

7.1           Term.  [***]

7.2                                 Termination.  This Agreement may be terminated:

(a)                                  at
any time upon the mutual written consent of the Parties;

 17
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

(b)           by either Party for a material breach
of this Agreement by the other Party upon sixty (60) days’ prior written notice
to the breaching Party if during such sixty (60) day period, (i) substantial
steps to cure the default have not been undertaken by the breaching Party
within thirty (30) days of such notice, or (ii) the default has not been cured
to the reasonable satisfaction of the non-defaulting Party;

(c)           by either Party after giving the
other Party sixty (60) days’ written notice if such other Party has entered
into or committed any act of liquidation, bankruptcy, insolvency, receivership,
or assignment for the benefit of creditors, to the extent such act is permitted
by law; or

(d)           by Schering upon twelve (12) months’
prior written notice to Heska of its intent to terminate this Agreement at the
end of the succeeding Calendar Year and upon payment of all amounts due Heska
through the effective date of termination.

7.3           Payment upon Termination.  Schering shall receive a payment in the event
that the Agreement is terminated, at Schering’s option, for the following
reasons: (a) Heska’s inability to supply the Product due to force majeure or
any other reason under the control of Heska that prevents Heska from supplying
the Product for a period of longer than four (4) consecutive months; or (b)
[***].  Such payment will be due [***]
the termination date as set forth in this Section 7.3.  The Parties hereby agree that the payment
schedule shall be as follows:

	
  Year of Termination

  	
   

  	
   

  	
  Amount
  Refunded to Schering

  
	
   

  	
   

  	
   

  	
   

  
	
  2003

  	
   

  	
   

  	
  [***]

  
	
  2004

  	
   

  	
   

  	
  [***]

  
	
  2005

  	
   

  	
   

  	
  [***]

  
	
  2006

  	
   

  	
   

  	
  [***]

  
	
  2007

  	
   

  	
   

  	
  [***]

  
	
  2008

  	
   

  	
   

  	
  [***]

  

 

7.4           Effect of Termination.  Upon termination of this Agreement, neither
Party shall be released from any obligation that matured prior to the effective
date of such termination.  Schering
shall, however, after the effective date of such termination, sell all Product
in its inventory within six (6) months.

8.             Dispute Resolution

The Parties agree to attempt in good faith to resolve
any dispute arising out of or relating to this Agreement promptly by
negotiation between representatives who have the

 18
 

authority to
settle the controversy.  Any Party may
give the other Party written notice of any dispute not resolved in the normal
course of business.  Within fifteen (15)
days after delivery of the notice, the receiving Party shall submit to the
other a written response.  The notice and
response shall include (a) a statement of each Party’s position and a summary
of arguments supporting that position, and (b) the name and title of the
representative who will represent that Party and any other person who will
accompany the representative.  Within
thirty (30) days after delivery of the disputing Party’s notice, the
representatives of both parties shall meet at a mutually acceptable time and
place, and thereafter as often as they reasonably deem necessary to attempt to
resolve the dispute.  All reasonable
requests for information made by one Party to the other will be honored.

All negotiations
pursuant to this Section are confidential and shall be treated as compromise
and settlement negotiations for purposes of applicable rules of evidence.  If the dispute between the Parties is
resolved, such decision shall be binding upon the Parties.  If the dispute has not been resolved by
negotiation within forty-five (45) days of the disputing Party’s notice, the
Parties shall endeavor to settle the dispute by mediation under the then
current CPR Model Mediation Procedure for Business Disputes.  If the dispute between the Parties is
resolved by mediation, such decision shall be binding upon the Parties.  Each Party will bear its own costs.  The provisions of this Section shall not
apply if one Party refuses to negotiate the dispute in good faith or if more
prompt legal action is required to avoid material loss or damage.

9.             Miscellaneous

9.1           Relationship of Parties.  The relationship of Schering to Heska under
this Agreement is intended to be that of an independent contractor. Nothing
contained in this Agreement is intended or is to be construed so as to
constitute Schering and Heska as employer/employee or principal/agent, or the
employees or the agents of any Party hereto as employees or agents of the other
Party hereto.  Neither Party has any
express or implied right or authority under this Agreement to assume or create
any obligations on behalf of or in the name of the other Party or to bind the
other Party to any contract, agreement, or undertaking with any third party,
other than the successors and permitted assigns of the respective Parties
hereto.

9.2           Assignments.  Neither Party shall have the right to transfer
or assign its interest in this Agreement without the prior written consent of
the other Party, which consent shall not be unreasonably withheld; provided,
however, that either Party may make such transfer or assignment to an
Affiliate, or to an entity acquiring all or substantially all relevant assets
of a Party to which this Agreement pertains, including, but not limited to, the
transfer of assets in connection with a merger, acquisition or the like.  No transfer or assignment will relieve the
transferor or assignor of any liability or obligations hereunder.  This Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and
permitted assigns.

9.3           Publicity.  The Parties agree to mutually approve the
text of any press releases or any other public statements to be issued
announcing the execution of this Agreement or the transactions contemplated
hereby, which approval shall not be unreasonably withheld.  The foregoing shall not be deemed to prevent
either Party from

 19
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

making any public
disclosure which may be required of either Party or its Affiliates under the
applicable government securities laws.

9.4           Waiver.  No waiver by either Party of any default shall
be effective unless in writing nor shall any such waiver operate as a waiver of
any other default or of the same default on a future occasion.

9.5           Severability.  If one or more provisions of this Agreement
is held invalid, illegal or unenforceable, the remaining provisions shall not
in any way be affected or impaired.  In
the event any provision is held invalid, illegal or unenforceable, the Parties
shall use reasonable efforts to substitute a valid, legal and enforceable
provision which, insofar as is practical, implements the purposes of such
provision.

9.6           Survival.  The provisions of Articles 4, 5, 6, 7, 8, and
9 shall survive the termination of this Agreement.

9.7           Notices.  Except as expressly provided in this
Agreement, all notices under this Agreement shall
be in writing and shall be deemed given upon receipt if sent by facsimile,
(except for the legal process in each case), certified or registered mail or
commercial courier (return receipt or confirmation of delivery requested), or
by personal delivery to the Party to receive such notices or other
communications called for by this Agreement at the following addresses for a
party as shall be specified by such Party by like notice:

	
   

  	
  If to Schering:

  
	
   

  	
   

  
	
   

  	
  Schering-Plough
  Animal Health Corporation

  
	
   

  	
  1095 Morris
  Avenue

  
	
   

  	
  Union, New
  Jersey 07093-1982

  
	
   

  	
  Attention:
  Director, Worldwide Business Development facsimile [***]

  
	
   

  	
   

  
	
   

  	
  If to Heska:

  
	
   

  	
   

  
	
   

  	
  Heska
  Corporation

  
	
   

  	
  1613 Prospect
  Parkway

  
	
   

  	
  Fort Collins, CO
  80525

  
	
   

  	
  Attention:

  	
      Chief
  Executive Officer

  
	
   

  	
  Facsimile:

  	
      1.970.484.9505

  
	
   

  	
  Copy to: 

  	
  Executive Vice
  President, Intellectual Property

  
	
   

  	
   

  	
  and Business Development

  
	
   

  	
  Facsimile:

  	
      1.970.491.9976.

  

 

9.8           Force majeure.  Either Party shall be excused from the
performance of its obligations hereunder, or such performance may be delayed,
by causes beyond its reasonable control, including, without limitation, acts of
God, war, riot, epidemic, fire, flood, insurrection, military authorities,
labor disputes, delay or inability to obtain supplies, labor, raw materials,
energy or failure of transportation or communication and

 20
 

any other similar
contingency, provided that if such nonperformance continues for more than
ninety (90) days, the other Party may terminate the Agreement upon written
notice, except as specified in Section 7.3.

9.9           Governing Law.  This Agreement shall be governed by and
construed under the laws of the State of Delaware without reference to
conflicts of laws principles.

9.10         Entire Agreement.  This Agreement and the Appendices hereto
constitute the entire agreement and understanding of the Parties with regard to
the subject matter hereof and supercede all prior agreements and understanding,
written or oral, between the Parties.  This
Agreement may only be altered, modified or amended in a writing signed by the
Parties.

9.11         Counterparts.  This Agreement may be executed in
counterparts, each of which is deemed to be an original, but all of which
together shall constitute one and the same instrument.  Facsimile and photocopy signatures shall
carry the same force and effect, and shall bind the Parties hereto in the same
manner, as original signatures to this Agreement.

9.12         Construction.

(a)           The language and terms of this
Agreement are to be understood in their ordinary sense (except where otherwise
defined herein) and are not to be interpreted in a technical manner so as to
unfairly deprive any Party of substantive rights.

(b)           The text of this Agreement is the
product of negotiation among both Parties and is not to be construed as having
been prepared by one Party or the other.

(c)           The headings used in this Agreement
are for convenience only and are not part of this Agreement.

9.13         Warranty of Authorized Signatories.  Each of the signatories to this Agreement
warrants and represents that he or she is competent and authorized to enter
into this Agreement on behalf of the Party for whom he or she purports to sign.

9.14         Insurance.

(a)           During the term of this Agreement and
for a period of five (5) years thereafter, Heska shall, at its own cost and
expense, (i) maintain, and shall cause any of its Affiliates to maintain,
general liability insurance, including coverage for product liability and
contractual liability, in an amount not less than Five Million Dollars
(U.S.$5,000,000) and (ii) furnish to Schering, upon request, a certificate of
insurance evidencing compliance with the requirements of this Section
9.14(a).  Such certificate shall provide
that Schering shall be notified in writing of any cancellation or material
change in such insurance not less than thirty (30) days prior to the date of
such cancellation or change.

 21
 

(b)           Schering represents that all
insurance maintained by it or its Affiliates are consistent with industry
practice and subject to deductibles and self-insurance limits.

The Parties have caused this Agreement to be signed by their
duly authorized representatives.

	
  SCHERING-PLOUGH ANIMAL

  	
  HESKA CORPORATION

  
	
  HEALTH
  CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Raul E. Kohan

  	
   

  	
  By:

  	
  /s/ Carol
  Talkington Verser

  
	
  Name:

  	
  Raul E. Kohan

  	
   

  	
  Name:

  	
  Carol Talkington
  Verser, Ph.D.

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  Executive Vice
  President

  
	
  Date:

  	
  August 4, 2003

  	
   

  	
  Date:

  	
  August 1, 2003

  
											

 

 22

[***] —
Certain information on this page have been omitted and filed separately with
the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

APPENDIX
A

PRICE,
MINIMUM PURCHASE SIZE, AND

ANNUAL
MINIMUM PURCHASE REQUIREMENT

1.  Product transfer price:

	
  Small tablets

  	
   

  	
  [***] per packet of six (6) tablets

  
	
  Medium tablets

  	
   

  	
  [***] per packet of six (6) tablets

  
	
  Large tablets

  	
   

  	
  [***] per packet of six (6) tablets

  

 

2.  Minimum Purchase Size:

	
  Small tablets

  	
   

  	
  [***] packets, equivalent to [***] Display Cases

  
	
  Medium tablets

  	
   

  	
  [***] packets, equivalent to [***] Display Cases

  
	
  Large tablets

  	
   

  	
  [***] packets, equivalent to [***] Display Cases

  

 

3.  Annual Minimum Purchase Requirement per
Calendar Year:

	
  Small tablets

  	
   

  	
  [***] packets, equivalent to [***] Display Cases

  
	
  Medium tablets

  	
   

  	
  [***] packets, equivalent to [***] Display Cases

  
	
  Large tablets

  	
   

  	
  [***] packets, equivalent to [***] Display Cases

  

 23
 

[***] —
Certain information on this page have been omitted and filed separately with
the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

APPENDIX
B

PRODUCT
SPECIFICATIONS

A.            SMALL TABLETS:

Labeled amount of
ivermectin, per tablet: 68 mcg

Labeled amount of pyrantel (as pyrantel
pamoate), per tablet: 57 mg

1. Appearance:
Round, brown convex tablet with no imprinting, approximately 0.56 inches in
diameter and 1.25 grams in weight

2. Identification:

Ivermectin: retention
times of reference standard and sample compare satisfactorily

Pyrantel: retention times of reference
standard and sample compare satisfactorily

3. Ivermectin
content (average): 90.0 to 115.0 % of labeled amount

4. Pyrantel
content (average): 90.0 to 110.0 % of labeled amount

5. Microbial limits:

Salmonella: none detected

Escherichia coli:
not more than 2.2 CFU per gram

6. pH: 4.0 to 6.0

7.  [***]

B.            MEDIUM TABLETS:

Labeled amount of
ivermectin, per tablet: 136 mcg

Labeled amount of
pyrantel (as pyrantel pamoate), per tablet: 114 mg

1. Appearance: Round,
brown convex tablet with no imprinting, approximately 0.75 inches in diameter
and 2.5 grams in weight

2. Identification:

Ivermectin: retention
times of reference standard and sample compare satisfactorily

Pyrantel:
retention times of reference standard and sample compare satisfactorily

3. Ivermectin
content (average): 90.0 to 115.0 % of labeled amount

 24
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

4. Pyrantel content
(average): 90.0 to 110.0 % of labeled amount

5. Microbial limits:

Salmonella: none detected

Escherichia coli: not
more than 2.2 CFU per gram

6. pH: 4.0 to 6.0

7.  [***]

C.            LARGE TABLETS:

Labeled amount of ivermectin, per tablet: 272 mcg

Labeled amount of
pyrantel (as pyrantel pamoate), per tablet: 227 mg

1. Appearance:
Round, brown convex tablet with no imprinting, approximately 0.94 inches in
diameter and 5.0 grams in weight

2. Identification:

Ivermectin: retention times of reference standard and sample compare
satisfactorily

Pyrantel: retention times of reference
standard and sample compare satisfactorily

3. Ivermectin content
(average): 90.0 to 115.0 % of labeled amount

4. Pyrantel content
(average): 90.0 to 110.0 % of labeled amount

5. Microbial limits:

Salmonella: none detected

Escherichia coli: not
more than 2.2 CFU per gram

6. pH: 4.0 to 6.0

7.  [***]

 25
 

D.  BLISTER CARDS AND DISPLAY CASE:

1. Blister
Card:  Preprinted, six (6) panels folded
into three (3) sections, with six (6) Blisters in circular configuration in
middle section, with one (1) tablet contained in each Blister.

2.  Blister:

Barrier film: 7.5 mil PVC / 2 mil ACLAR laminate.

Push-through foil:  Reynolds 701

3.  Display Case: 
Preprinted, containing fourteen (14) Blister Cards.

 26
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

APPENDIX
C

[***]

 27
 

[***] — Certain information on this page have been omitted and filed
separately with the Securities and Exchange Commission.  Confidential treatment has been requested
with respect to the omitted portions.

APPENDIX
D

[***]

 

 28Exhibit 10.33

[***] —
Certain information in this exhibit have been omitted and filed separately with
the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

THIRD
AMENDMENT

TO

AMENDED
AND RESTATED

BOVINE VACCINE DISTRIBUTION AGREEMENT

This Third
Amendment (“Third Amendment”) is entered into as of the  26th day
of May, 2006 (“Effective Date”) by and between DIAMOND
ANIMAL HEALTH, INC., an Iowa corporation with offices at 2538
Southeast 43rd Street, Des Moines, Iowa 50317 (“Diamond”)
and AGRI LABORATORIES, LTD., a Delaware
corporation, with offices at 20927 State Route K, St. Joseph, Missouri 64505 (“Distributor”)
as an amendment to that certain Amended and Restated Bovine Vaccine
Distribution Agreement dated as of September 30, 2002 between Diamond and
Distributor (the “Original Agreement”), as amended by that certain First
Amendment dated as of September 20, 2004 (the “First Amendment”) and
that certain Second Amendment dated as of December 10, 2004 (the “Second
Amendment”) (collectively, the “Agreement”).

WHEREAS, Diamond
and Distributor are parties to the Agreement providing for the distribution of
certain bovine antigens; and

WHEREAS, Diamond
and Distributor desire to amend the Agreement on the terms and conditions of
this Third Amendment.

NOW, THEREFORE,
the parties agree as follows:

1.             Definitions.  Capitalized terms used herein shall have the
meaning ascribed to them in the Agreement, unless otherwise defined herein.

2.             Prepayments.  Distributor hereby reaffirms its obligation
to make a [***] prepayment on each of June 16, 2006 and September 16, 2006, as
outlined in and subject to the terms and conditions of Section 3.04(iii)(A) of
the Agreement.

3.             Use of Prepayment Proceeds.  The unused balance of any prepayment made by
Distributor on June 16, 2006 and September 16, 2006 shall be carried over as a
credit for purchases in future periods, including Contract Year 2007 if
necessary, and any revenue from such balance shall be included in Initial
Product Qualified Revenues and Qualified Revenues for Contract Year 2006 only,
regardless of the actual fulfillment date.

4.             Take or pay obligations.  Diamond hereby waives Distributor’s
obligations under Section 3.04(iii)(D) of the Agreement for the third and
fourth quarter of Contract Year 2006 only.

[***] —
Certain information on this page have been omitted and filed separately with
the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

5.             Reaffirmation of purchase orders.  Distributor reaffirms its obligations under
firm written purchase orders currently outstanding for delivery in the third and
fourth quarter of Contract Year 2006, as outlined on Exhibit C, and
subject to regulatory approval and the terms and conditions of this Agreement.

6.             Third quarter [***] orders.  Distributor agrees to submit firm written
purchase orders for Products other than [***] Products scheduled for delivery
in the third quarter of Contract Year 2006 of at least [***].  If there are less than [***] of such purchase
orders on Exhibit C for Products other than [***] Products, Distributor shall
promptly submit enough of such purchase orders so that there are [***] of such
purchase orders.  Distributor shall not be
required to pay or lose prepayment credit on any order unless and until Diamond
fulfills such order.  All revenue from
these purchase orders shall be included in Initial Product Qualified Revenues
and Qualified Revenues for Contract Year 2006 only, regardless of the actual fulfillment
date.

7.             Fourth quarter [***] orders.  Distributor agrees to submit firm written
purchase orders for Products other than [***] Products scheduled for delivery
in the fourth quarter of Contract Year 2006 of at least [***].  Distributor shall not be required to pay or
lose prepayment credit on any order unless and until Diamond fulfills such
order.  All revenue from these purchase
orders shall be included in Initial Product Qualified Revenues and Qualified
Revenues for Contract Year 2006 only, regardless of the actual fulfillment
date.

8.             [***] Orders.  If necessary to purchase [***], including
amounts from Section 6 and 7 above, from Diamond during the last six months of
Contract Year 2006 if [***] on or before [***], Distributor agrees to issue
purchase orders for [***] Products in addition to those listed on Exhibit
C.  Distributor shall not be required to
pay or lose prepayment credit on any order unless and until Diamond fulfills
such order.  All revenue from these
purchase orders shall be included in Initial Product Qualified Revenues and
Qualified Revenues for Contract Year 2006 only, regardless of the actual
fulfillment date.

9.             [***].  [***] on or before [***], Distributor will
commit to purchase at least [***] from Diamond during the last six months of
Contract Year 2006.  If at the time [***],
Distributor has not submitted firm written purchase orders for delivery in the
last six months of Contract Year 2006 totaling at least [***], Distributor
shall promptly submit enough of such purchase orders so that there are [***] of
such purchase orders.  Distributor shall
not be required to pay or lose prepayment credit on any order unless and until
Diamond fulfills such order.  All revenue
from these purchase orders shall be included in Initial Product Qualified
Revenues and Qualified Revenues for Contract Year 2006 only, regardless of the
actual fulfillment date.

10.           Amendment of Loan.  Pursuant to Section 3 of the Second Amendment
Diamond delivered to Distributor a substitute Note (the “Substitute Note”)
attached as Exhibit A to evidence the Loan.  Upon execution and delivery of this Third
Amendment, the parties shall cancel the Substitute Note and execute and deliver
a second substitute note (the “2007 Note”) in the form attached hereto
as Exhibit B.

 2
 

[***] — Certain information on
this page have been omitted and filed separately with the Securities and
Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

11.           [***].  If [***], there shall be no change to Section
3.07 of the Agreement, which is entitled [***]. 
If [***], the first sentence of Section 3.07 of the Agreement shall be
deleted in its entirety and replaced with the following sentence:

[***]

12.           Effect of Amendment.  This Third Amendment is hereby
incorporated by reference into the Agreement as if fully set forth therein, the
Agreement as amended by this Third Amendment shall continue in full force and
effect following execution and delivery hereof, and references to the term “Agreement”
shall include this Third Amendment.  In
the event of any conflict between the terms and conditions of the Original
Agreement, First Amendment or Second Amendment and this Third Amendment, the
terms and conditions of this Third Amendment shall control.

IN WITNESS
WHEREOF, the parties have caused this Third Amendment be executed by their duly
authorized representatives as of the date first written above.

	
  

  	
  DIAMOND ANIMAL
  HEALTH, INC.

  
	
   

  	
   

  
	
   

  	
  By: /s/ Jason A.
  Napolitano

  
	
   

  	
  Its: Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  AGRI
  LABORATORIES, LTD.

  
	
   

  	
   

  
	
   

  	
  By: /s/ Steve
  Schram

  
	
   

  	
  Its:
  CEO/President

  

 

 3

EXHIBIT A

AMENDED AND RESTATED

PROMISSORY NOTE

	
  $500,000.00

  	
  as of April 15, 2002

  
	
   

  	
  Des Moines, Iowa

  

 

FOR VALUE
RECEIVED, the undersigned DIAMOND ANIMAL HEALTH, INC., an Iowa corporation (“Maker”), promises to pay to AGRI
LABORATORIES, LTD., a Delaware corporation (“Holder”),
or order, at such place as the Holder of this Note shall designate in writing,
the sum of Five Hundred Thousand Dollars ($500,000.00) in lawful money of the
United States of America.  Beginning from
the date hereof interest shall accrue until the effective date of that certain
Second Amendment to the Distribution Agreement (defined below) on the
outstanding principal balance at the “prime rate” plus one-quarter percent
(1/4%) per annum and thereafter, at the “prime rate” plus one percent (1%) per
annum.  Accrued interest shall be paid
quarterly on each quarterly anniversary of the date of this Note, and shall
accrue based upon a thirty-day month and a 360-day year.  Principal under this Note shall be paid in
one annual installment on May 31, 2006.

All principal and any
accrued but unpaid interest shall be due and payable on the maturity date of
this Note.

Notwithstanding
any provision of this Note to the contrary, all principal and unpaid accrued
interest shall be due and payable on the ninetieth (90th) day following the date that
either (i) Holder’s exclusivity rights under that certain Amended and
Restated Bovine Vaccine Distribution Agreement dated as of September 30, 2002,
as amended (the “Distribution Agreement”)
are terminated due to Distributor’s nonpayment of any Additional Payment under
the Distribution Agreement or (ii) in the event of a merger, sale or fifty
percent (50%) change in ownership of Maker.

The “prime rate”
shall be the annual rate of interest announced from time to time by Wells Fargo
Business Credit, Inc. (“Wells Fargo”)
as its prime rate.  The interest accruing
on the principal balance of this Note shall fluctuate from time to time
concurrently with changes in the prime rate, effective as of the date any
change in the prime rate is publicly announced. 
If Wells Fargo ceases to announce the prime rate, the prime rate as
published in the Wall Street Journal in its “Money Rates” section or a similar
financial publication shall be used, as reasonably determined by Maker.

Maker shall have
the right at any time or from time to time to prepay all or a portion of the
principal or interest without premium or penalty, and such prepayments shall be
applied first to accrued interest and then to principal.

If default be made
in the payment of any of the installments of principal, interest, or other
amounts when due under this Note, the entire principal sum and accrued interest
and all other amounts due hereunder shall become due at the option of Holder if
not paid within ten (10) days of written notice to Maker.

In the event
garnishment, attachment, levy or execution is issued against any substantial or
material portion of the property or assets of Maker, or any of them if more
than one, or upon the happening of any event which constitutes a default
pursuant to the terms of any agreement or other instrument entered into or
given in connection herewith, or upon the adjudication of Maker, or any of them
if more than one, a bankrupt, such event shall be deemed a default hereunder
and Holder may declare this Note immediately due and payable without notice to
Maker or exercise any of its remedies hereunder or at law or equity.  Should suit be brought to recover on this
Note, or should the same be placed in the hands of an attorney for collection,
Maker promises to pay all reasonable attorneys’ fees and costs incurred in
connection therewith.

PAGE 1 OF
PROMISSORY NOTE DATED APRIL 15, 2002

Failure of Holder
to exercise any option hereunder shall not constitute a waiver of the right to
exercise the same in the event of any subsequent default, or in the event of
continuance of any existing default.

Maker waives
demand, diligence, presentment for payment, protest and notice of demand,
protest, nonpayment and exercise of any option hereunder.  Maker agrees that the granting without notice
of any extension or extensions of time for payment of any sum or sums due
hereunder, or for the performance of any covenant, condition or agreement hereof
shall in no way release or discharge the liability of Maker hereof.

This Note
shall be governed by the laws of the State of Iowa.

Time is
of the essence of this Note and each and every term and provision hereof.

This Note is
secured by that certain Security Agreement, dated as of even date herewith, by
and between Maker and Holder.  Debtor and
its affiliates are parties to that certain Second Amended and Restated Credit
and Security Agreement by and between Debtor and Wells Fargo Business Credit,
Inc., fka Norwest Business Credit, Inc., a Minnesota corporation (“Wells Fargo”), originally dated June 4, 2000, as amended,
that certain Loan Agreement dated as of April 4, 1994 and related Promissory
Note between the City of Des Moines, Iowa and Debtor, as amended, and that
certain CEBA Loan Agreement dated January 20, 1994 and related Promissory Notes
between Iowa Department of Economic Development and Debtor, as amended
(collectively, the “Senior Loan Agreements”  and the lender parties thereto collectively, the  “Senior Lenders”).  This Note and Maker’s obligations hereunder
shall be junior and subordinated to all any and all indebtedness and
obligations for borrowed money (including, without limitation, principal,
premium (if any), interest, fees, charges, expenses, costs, professional fees
and expenses, and reimbursement obligations) (“Indebtedness”)
at any time owing by Debtor to the Senior Lenders, their successors and assigns
under the Senior Loan Agreements or otherwise, and the extension, renewal or
refinancing (including without limitation any additional advances made in
connection therewith) of all or any portion of such Indebtedness by any of the
Senior Lenders or any successor lender and any and all security interests
securing any portion of such Indebtedness and additional advances from time to
time (such Indebtedness, additional advances and security interests, the “Senior Indebtedness”).  Holder hereby agrees to take such actions,
and to execute and deliver such documents and instruments, as shall be
requested from time to time by any holder of Senior Indebtedness to confirm and
further implement such subordination.  In
addition, this Note is subject to the terms and conditions of that certain
Subordination Agreement dated as of even date herewith by and among Maker,
Holder and Wells Fargo.

This Note replaces
that certain Amended and Restated Promissory Note dated as of April 15, 2004
given by Maker to Holder.

THE
PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON
OR PERTAINING TO THIS NOTE.

	
  

   

  	
  DIAMOND ANIMAL
  HEALTH, INC., an Iowa 

  corporation, Maker

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason A.
  Napolitano

  
	
   

  	
  Its:

  	
  Chief Financial
  Officer

  

 

THIS
INSTRUMENT IS SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT BY AGRI
LABORATORIES, LTD. IN FAVOR OF WELLS FARGO BUSINESS CREDIT, INC. DATED AS OF
APRIL 15, 2002.

PAGE 2 OF PROMISSORY NOTE DATED APRIL 15, 2002

 

EXHIBIT B

2007 Note

 

AMENDED AND RESTATED

PROMISSORY
NOTE

	
  $500,000.00

  	
  as of April 15, 2002

  
	
   

  	
  Des Moines, Iowa

  

 

FOR VALUE
RECEIVED, the undersigned DIAMOND ANIMAL HEALTH, INC., an Iowa corporation (“Maker” or “Debtor”),
promises to pay to AGRI LABORATORIES, LTD., a Delaware corporation (“Holder”), or order, at such place
as the Holder of this Note shall designate in writing, the sum of Five Hundred
Thousand Dollars ($500,000.00) in lawful money of the United States of
America.  Beginning from the date hereof
interest shall accrue until the effective date of that certain Second Amendment
to the Distribution Agreement (defined below) on the outstanding principal
balance at the “prime rate” plus one-quarter percent (1/4%) per annum and
thereafter, at the “prime rate” plus one percent (1%) per annum.  Accrued interest shall be paid quarterly on
each quarterly anniversary of the date of this Note, and shall accrue based
upon a thirty-day month and a 360-day year. 
Principal under this Note shall be paid in one annual installment on May
31, 2007.

All principal and any
accrued but unpaid interest shall be due and payable on the maturity date of
this Note.

Notwithstanding
any provision of this Note to the contrary, all principal and unpaid accrued
interest shall be due and payable on the ninetieth (90th) day following the date that
either (i) Holder’s exclusivity rights under that certain Amended and
Restated Bovine Vaccine Distribution Agreement dated as of September 30, 2002,
as amended (the “Distribution Agreement”)
are terminated due to Distributor’s nonpayment of any Additional Payment under
the Distribution Agreement or (ii) in the event of a merger, sale or fifty
percent (50%) change in ownership of Maker.

The “prime rate”
shall be the annual rate of interest announced from time to time by Wells Fargo
Bank, National Association (“Wells Fargo”)
as its prime rate.  The interest accruing
on the principal balance of this Note shall fluctuate from time to time
concurrently with changes in the prime rate, effective as of the date any
change in the prime rate is publicly announced. 
If Wells Fargo ceases to announce the prime rate, the prime rate as
published in the Wall Street Journal in its “Money Rates” section or a similar
financial publication shall be used, as reasonably determined by Maker.

Maker shall have
the right at any time or from time to time to prepay all or a portion of the
principal or interest without premium or penalty, and such prepayments shall be
applied first to accrued interest and then to principal.

If default be made
in the payment of any of the installments of principal, interest, or other
amounts when due under this Note, the entire principal sum and accrued interest
and all other amounts due hereunder shall become due at the option of Holder if
not paid within ten (10) days of written notice to Maker.

In the event
garnishment, attachment, levy or execution is issued against any substantial or
material portion of the property or assets of Maker, or any of them if more
than one, or upon the happening of any event which constitutes a default
pursuant to the terms of any agreement or other instrument entered into or
given in connection herewith, or upon the adjudication of Maker, or any of them
if more than one, a bankrupt, such event shall be deemed a default hereunder
and Holder may declare this Note immediately due and payable without notice to
Maker or exercise any of its remedies hereunder or at law or equity.  Should suit be brought to recover on this Note,
or should the same be placed in the hands of an attorney for collection, Maker
promises to pay all reasonable attorneys’ fees and costs incurred in connection
therewith.

 1
 

Failure of Holder
to exercise any option hereunder shall not constitute a waiver of the right to
exercise the same in the event of any subsequent default, or in the event of
continuance of any existing default.

Maker waives
demand, diligence, presentment for payment, protest and notice of demand,
protest, nonpayment and exercise of any option hereunder.  Maker agrees that the granting without notice
of any extension or extensions of time for payment of any sum or sums due
hereunder, or for the performance of any covenant, condition or agreement
hereof shall in no way release or discharge the liability of Maker hereof.

This Note
shall be governed by the laws of the State of Iowa.

Time is
of the essence of this Note and each and every term and provision hereof.

This Note is
secured by that certain Security Agreement, dated as of even date herewith, by
and between Maker and Holder.  Debtor and
its affiliates are parties to that certain Third Amended and Restated Credit
and Security Agreement by and between Debtor and Wells Fargo Bank, National
Association, as successor in interest to Wells Fargo Business Credit, Inc. (“Wells Fargo”), dated December 30, 2005 and Debtor is party
to a certain promissory note with the City of Des Moines, due in monthly
installments through June 2006 (collectively, the “Senior
Loan Agreements”  and the lender
parties thereto collectively, the  “Senior Lenders”).  This Note and Maker’s obligations hereunder
shall be junior and subordinated to all any and all indebtedness and
obligations for borrowed money (including, without limitation, principal,
premium (if any), interest, fees, charges, expenses, costs, professional fees
and expenses, and reimbursement obligations) (“Indebtedness”)
at any time owing by Debtor to the Senior Lenders, their successors and assigns
under the Senior Loan Agreements or otherwise, and the extension, renewal or
refinancing (including without limitation any additional advances made in
connection therewith) of all or any portion of such Indebtedness by any of the
Senior Lenders or any successor lender and any and all security interests
securing any portion of such Indebtedness and additional advances from time to
time (such Indebtedness, additional advances and security interests, the “Senior Indebtedness”).  Holder hereby agrees to take such actions,
and to execute and deliver such documents and instruments, as shall be
requested from time to time by any holder of Senior Indebtedness to confirm and
further implement such subordination.  In
addition, this Note is subject to the terms and conditions of that certain
Subordination Agreement dated as of even date herewith by and among Maker,
Holder and Wells Fargo.

This Note replaces
that certain Amended and Restated Promissory Note dated as of April 15, 2004
given by Maker to Holder.

THE
PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON
OR PERTAINING TO THIS NOTE.

	
  

  	
  DIAMOND ANIMAL
  HEALTH, INC., an Iowa

  corporation,
  Maker

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason A.
  Napolitano

  
	
   

  	
  Its:

  	
  Chief Financial
  Officer

  

 

THIS
INSTRUMENT IS SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT BY AGRI
LABORATORIES, LTD. IN FAVOR OF WELLS FARGO BUSINESS CREDIT, INC. DATED AS OF
APRIL 15, 2002.

 2

[***] — Certain information on
this page have been omitted and filed separately with the Securities and
Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

Exhibit C

AgriLabs 3rd Quarter Purchase Orders and 4th Quarter Purchase Orders and Forecast as of
5/25/06

1.             3rd Quarter 2006

[***]

[***] — Certain information on
this page have been omitted and filed separately with the Securities and
Exchange Commission.  Confidential
treatment has been requested with respect to the omitted portions.

Exhibit C

(Cont.)

AgriLabs 3rd Quarter Purchase Orders and 4th Quarter Purchase Orders and Forecast as of
5/25/06

(Cont.)

2.             4th Quarter 2006

[***]

 

 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]