Document:

EX-10.8

 

Exhibit 10.8

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of November 1, 2006 and
amended and restated effective March 20, 2007 by and among Biodel Inc., a Delaware corporation with
an address at 6 Christopher Columbus Avenue, Danbury, CT 06810-7352 (“BIODEL”, “Employer” or the
“Company”), and F. Scott Reding, an individual residing 18 Peterick Lane, Darien, Connecticut 06820
(“Employee”).

W
I T N E S S E T H:

     WHEREAS, Employer desires to secure the services of Employee as Treasurer and Chief Financial
Officer; and

     WHEREAS, Employee desires to enter into the employ of Employer in accordance with the terms
and conditions herein set forth;

     WHEREAS, the parties entered into an agreement as of November 1, 2006;

     WHEREAS, the parties wish to amend such agreement so that such agreement as so amended shall
read in its entirety as follows

     NOW, THEREFORE, in consideration of the premises and of the covenants and agreements of the
parties herein set forth, the parties hereto hereby covenant and agree as follows:

          1. Position of Employment. Subject to the terms and conditions hereof, Employer
hereby agrees to employ the services of Employee as Treasurer and Chief

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Financial Officer and Employee hereby accepts such employment and agrees to serve the Company
in such capacity. Employee shall have the duties, authority and responsibilities customarily
associated with the offices of Treasurer and Chief Financial Officer and shall report to the
Company’s Chief Executive Officer. During the period that Employee is employed by Employer,
Employee shall devote substantially all of his business time and attention to the performance of
the duties described herein. Notwithstanding the foregoing, Employee shall be entitled to serve on
the Boards of other Companies if approved by the Company’s Board of Directors, to pursue charitable
endeavors and to participate in professional organizations, provided that such activities do not
interfere in any material respect with the performance by Employee of his duties hereunder.
Employee shall at all time act in good faith in the performance of his duties. Employee agrees to
abide by the rules, regulations, instructions, personnel practices and policies of the Company and
any changes therein which may be adopted from time to time by the Company applicable to employees
generally, including, but not limited to, those relating to the protection of the Company’s
proprietary trade secrets and confidential information.

     2. Contract Term. Unless terminated earlier pursuant to Section 4 below,
the initial term of Employee’s employment under this Agreement shall be for the period from the
date of this Agreement (the “Commencement Date”) to
October 31, 2009 (the “Initial Termination
Date”). Following the Initial Termination Date, this Agreement shall be automatically renewed for
successive one-year terms (each, a “Renewal Term”) unless, at least three months prior to the
Initial Termination Date or the expiration of a Renewal Term, as applicable, Employee or BIODEL in
his or its respective sole discretion notifies the other party in writing of his or its intent to
terminate this Employment Agreement as

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of the Initial Termination Date or the expiration of a Renewal Term, as applicable. The term of
Employee’s employment hereunder, including any renewal periods pursuant to the immediately
preceding sentence, shall be hereafter referred to as the “Contract Term.” Notwithstanding the
foregoing, if a Change of Control occurs during the Contract Term, the Contract Term shall
automatically extend for a period of two (2) years from the effective date of Change of Control and
shall automatically terminate at the end of such period. “Change of Control” shall have the
Definition set forth in Appendix A hereto, which is hereby incorporated by reference.

     3. Salary and Additional Benefits.

          3.1 Employer shall pay to Employee and Employee agrees to accept as compensation for his
services to be rendered hereunder, an initial base salary of One Hundred and Ninety-Five Thousand
Dollars ($195,000) (“Base Salary”) per year for the period commencing with the Commencement Date
and ending on the completion of the Contract Term, payable in equal installments on the 15th and
last day of each month. In the event the Board of Directors shall by resolution increase the base
salary, then this agreement shall be deemed so amended as of the effective date of such resolution
or such other date specified in such resolution.

          3.2 During the term of this Agreement, Employee, as Treasurer and CFO, shall be entitled to
receive an annual year-end bonus in cash in an amount of not more than sixty percent (60%) of Base
Salary as determined by the Board of Directors. At the time the Board of Directors considers the
Employee’s bonus but not less than annually, the Board of Directors shall also consider an award to
the employee of stock or options to acquire stock under any stock award plan then in effect.
Employee shall

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receive an initial award of 200,000 shares of Common Stock of the Company at an option price of
$4.00 per shares vesting pro rata over 4 years.

          3.3 Employee shall be entitled to vacations, at such times as Employee shall reasonably
determine, of at least four weeks each year of employment hereunder.

          3.4 In addition to the foregoing, Employee shall also(i) participate in and be entitled to
receive medical insurance and other benefits substantially equivalent to the normal benefits
provided by BIODEL to its employees generally and (ii) participate in various retirement, welfare,
fringe benefit and executive perquisite plans, programs and arrangements of the Company to the
extent the senior executives of the Company generally are eligible for participation under the
terms of such plans, programs and arrangements including, without limitation, plans, programs and
arrangements for the granting of options to purchase securities of the Company or other equity
based compensation. Employee acknowledges the right of Employer to change, amend, or terminate any
of the benefits referred to in this paragraph, at any time in a manner which does not discriminate
between Employee and other company employees who are eligible to participate in such benefits.

          3.5 Employer shall reimburse Employee for any ordinary, necessary and reasonable travel,
maintenance and entertainment expenses incurred by the Employee in the course of his duties under
this Agreement, in accordance with the Employer’s customary policies and practices in effect from
time to time, upon submission to the Employer of appropriate vouchers and receipts evidencing the
same.

     4. Termination. The employment of the Employee by the Company pursuant to this
Agreement shall terminate upon the occurrence of any of the following:

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          4.1 Expiration of the Contract Term in accordance with Section 2;

          4.2 At the election of the Company, for cause, upon written notice by the Company to the
Employee. For the purposes of this Section 4.2, cause for termination shall be deemed to exist upon
(a) a good faith finding by the Board of Directors of the Company of (i) failure of the Employee to
perform in any material respect his assigned duties for the Company customarily associated with the
Office of Chief Financial Officer, which failure continues for ten (10) days subsequent to written
notice from the Company to the Employee of such failure, or (ii) dishonesty, gross negligence or
misconduct not involving any exercise of business judgment in good faith relating to the
performance of his duties for the Company; (b) the conviction of the Employee of, or the entry of a
pleading of guilty or nolo contendere by the Employee to, any crime involving moral turpitude or
any felony; or (c) the material breach by the Employee of any terms of this Agreement, which breach
continues for ten (10) days subsequent to written notice from the Company to the Employee of the
breach;

          4.3 Upon the death or, at the election of the Company, disability of the Employee. As used in
this Agreement, the term “disability” shall mean the inability of the Employee, due to a physical
or mental disability, for a period of 180 days, whether or not consecutive, during any 360-day
period to perform the services contemplated under this Agreement. A determination of disability
shall be made by a physician satisfactory to both the Employee and the Company; provided that if
the Employee and the Company do not agree on a physician, the Employee and the Company shall each
select a physician and these two together shall select a third physician, whose determination as to
disability shall be binding on all parties. Nothing herein shall be construed to violate any
Federal or

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State law including the Family and Medical Leave Act of 1993, 29 U.S.C.S. §2601 et seq.,
and the Americans With Disabilities Act, 42 U.S.C.S. §12101 et seq.

          4.4 The Company may terminate the employment of the Employee at any time without cause
immediately upon giving the Employee 30 days’ prior written notice of termination or payment in
lieu of notice. The Employee may terminate his employment at any time for good reason immediately
upon giving the Employer thirty (30) days prior written notice of termination. For the purpose of
this Section 4.4, good reason for termination shall exist upon (i) the material breach by the
Company of any terms of this Agreement which breach continues for ten (10) days subsequent to
written notice from the Employee to the Company of the breach or (ii) the assignment of the
Employee of any duties inconsistent in any material respect with the Employee’s positions with the
Company as set forth in this Agreement (including status, offices and titles), authority, duties
or responsibilities as contemplated by this Agreement or any action by the Company which results in
a material diminution in such positions, authority, duties or responsibilities, excluding for this
purpose any isolated, insubstantial and inadvertent action not taken in bad faith and which is
promptly remedied by the Company.

     5. Effect of Termination.

          5.1 Termination for Cause. In the event the Employee’s employment is
terminated for cause pursuant to Section 4.2, the Company shall pay to the Employee the
compensation and benefits which would otherwise be payable or accrued to him through the last day
of his actual employment by the Company.

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          5.2 Termination for Death or Disability. If the Employee’s employment is terminated
by death or because of disability pursuant to Section 4.3, the Company shall pay to the estate of
the Employee or to the Employee, as the case may be, the compensation and benefits which would
otherwise be payable or accrued to the Employee through the date of his termination and an
additional six months because of death or disability. The Company will continue health benefits for
one year after the date of termination.

          5.3 Termination Without Cause. If the Employee’s employment is terminated (a) at the
election of the Company pursuant to Section 4.4 without cause, or (b) at the election of the
Employee pursuant to Section 4.4 for good reason, and in consideration of the post-termination
non-compete and non-solicitation agreement set forth in Section 6, the Company shall pay to the
Employee the compensation and benefits payable or accrued to him under Section 4 (including the
provision of medical insurance, disability and life insurance), at the times provided in Section 4,
through the longer of (x) two (2) years following the termination date or (y) the balance of the
term of this Agreement.

     6. Non-Compete and Non-Solicitation.

          6.1 The Employee recognizes that his willingness to enter into the restrictive
covenants contained in this Section 6 are a critical condition precedent to the willingness of
BIODEL to enter into and perform under this Agreement. The Employee also acknowledges that the
restrictions contained in this Section 6 will not materially or unreasonably interfere with the
Employee’s ability to earn a living. The Employee acknowledges that the restrictions contained in
this Section 6 are necessary to protect the

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legitimate interests of BIODEL and to ensure that Employee will not reveal or use BIODEL’s
confidential, proprietary or trade secret information or unfairly compete with BIODEL after his
termination.

          6.2 During the Contract Term and, in the event the Employee’s employment is terminated for
cause pursuant to Section 4.2, through the day immediately prior to the first anniversary of the
termination date, or, if the Employee’s employment is terminated (a) at the election of the Company
pursuant to Section 4.4 without cause, or (b) at the election of the Employee pursuant to Section
4.4 for good reason, for so long as the Company shall pay to the Employee the compensation and
benefits payable or accrued to him under Section 4 (including the provision of medical insurance,
disability and life insurance), at the times provided in Section 4, the Employee will not directly
or indirectly:

               (a) as an individual proprietor, partner, stockholder, officer, employee, consultant,
director, joint venturer, investor, agent, distributor, dealer, representative, lender, or in any
other capacity whatsoever (other than as the holder of outstanding stock or equity of another
entity), engage in the business of delivering insulin by the oral, sublingual or injectable route
of administration; or

               (b) recruit, solicit or induce, or attempt to induce, any employee or employees of the Company
to terminate their employment with, or otherwise cease their relationship with, the Company, or
hire any such employee; or

               (c) knowingly solicit, divert, limit or take away, or attempt to divert or to take away, the
business or patronage of any of the clients, customers, dealers, distributors, representatives or
accounts, or prospective clients, customers, dealers,

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distributors, representatives or accounts, of the Company which were contacted, solicited or served
by employees of the Company while the Employee was employed by the Company.

          6.3. In the event that any court of competent jurisdiction determines that the duration or the
geographic scope, or both, of the non-competition and non-solicitation provisions set forth in this
Section 6 are unreasonable and that such provisions are to that extent unenforceable, the parties
hereto agree that the provisions shall remain in full force and effect for the greatest time period
and in the greatest area that would not render them unenforceable.

          6.4 The restrictions contained in this Section 6 are necessary for the protection of the
Company’s legitimate interests, confidential, proprietary or trade secret information, or goodwill;
or to protect the Company from the misuse or disclosure of its confidential, proprietary or trade
secret information; or to protect the Company from unfair competition. The Employee agrees that any
breach of this Section 6 will cause the Company substantial and irreparable damage and therefore,
in the event of any such breach, in addition to such other remedies which may be available, the
Company shall have the right to seek specific performance and injunctive relief.

          6.5 The Employee agrees that the duration and geographic restrictions imposed in this
Agreement are fair and reasonable and are reasonably required for the protection of the Company.
To the extent any portion of this Agreement, or any portion of any provision of this Agreement, is
held to be invalid or unenforceable, it shall be revised to reflect most nearly the parties’ intent
and the remainder of the provision or

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provisions of this Agreement shall be unaffected and shall continue in full force and effect.

          6.6 For purposes of this Section 6 and Section 7, the “Company” refers to the Company and any
of its affiliates.

     7. Confidential Information

          7.1. By executing this Agreement, the Employee recognizes and agrees that he is
employed in a position with the Company in which he will have access to certain confidential and
proprietary information concerning the business of the Company which is of great value to the
Company and which, if used in competition with the Company, would render great and irreparable harm
to the Company. Such information includes, but is not limited to, information relating to business
operations; services; network; systems; strategic business plans; marketing plans; long-range
goals; assets and liabilities; technical and engineering methods, processes, and/or know-how;
research and development activities; products; computer software and programs; marketing data;
pricing; product designs; discoveries; inventions; budgets; projections; customers and suppliers;
development plans, strategies and forecasts; new products and services; and financial statements.
This information is provided to the Employee solely for use in the course of his employment with,
and for the benefit of, the Company.

          7.2. To ensure that such confidential information provided to the Employee is maintained in
confidence by him and not used by him to unfairly compete with the Company, the Employee shall not,
during the course of the Employee’s employment and at any time within two (2) years thereafter
following the termination of his employment (regardless of whether the Employee’s termination is
voluntary or

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involuntary, or with or without cause), divulge, furnish or make accessible to anyone, or use in
any way other than in furtherance of the interests of the Company: (i) any confidential,
proprietary or secret knowledge or information which the Employee has acquired or become acquainted
with, or will acquire or become acquainted with, during the course of the Employee’s employment
with the Company; (ii) any confidential or proprietary information concerning the Company’s
customers, including but not limited to, information concerning a customers need, practice or
preferences; (iii) any confidential, proprietary or trade secret research and development
activities of the Company; and (iv) any other confidential, proprietary or trade secret information
relating to the business of the Company. The Employee agrees that this restriction applies to all
such information regardless of whether such information was developed by him. This restriction
shall not apply to information (i) which is or becomes public knowledge through no fault of the
Employee, (ii) is known to the Employee at the time of its disclosure as shown by his prior written
records, or (iii) is disclosed to the Employee by a third party who is under no confidential
obligation to the Company. The Employee further agrees that upon request by the Company, or upon
the termination of the Employee’s employment, the Employee will immediately return to the Company
any and all such information in the Employee’s possession or under the Employee’s control.

     8. Representations and Warranties of the Employee. The Employee represents and
warrants to the Company as follows:

          8.1. All facts concerning the Employee’s background, education, experience and employment
history as described to the Company in writing are true and correct;

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          8.2 The Employee’s execution of this Agreement and employment with the Company does not and
will not conflict with any obligations that the Employee has to any current or former employer, any
other individual, corporation, partnership, association, trust or any other entity or organization,
including any instrumentality of government;

          8.3 All files, records, compilations, reports, studies, manuals, memoranda, notebooks,
documents, financial reports and statements, correspondence, and other confidential information
whether prepared by the Employee or otherwise coming into the possession of the Employee, and all
copies thereof, are, and shall remain, the exclusive property of the Company, and shall be
delivered to the Company as soon as reasonably practicable and at the expense of the Company in the
event of the Employee’s termination or at any other time if requested by the Company.

     9. Indemnification. Employer shall indemnify Employee and hold him harmless against
any and all claims and liabilities asserted against Employee which arise in connection with the
performance of Employee’s duties and responsibilities while acting in Employee’s capacity as an
employee of Employer, except Employer shall not be obligated to indemnify or hold Employee harmless
against any claim or liability which arises out of Employee’s bad faith or intentional misconduct.

     10. Property Rights. With respect to information, inventions and discoveries
developed, made or conceived of by Employee, either alone or with others, at any time during
Employee’s employment by the Company and whether or not within working hours, arising out of such
employment or pertinent to any field of business or research in

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which, during such employment, the Company is engaged or (if such is known to or ascertainable by
Employee) is considering engaging, Employee agrees:

          10.1 that all such information, inventions and discoveries, whether or not patented or
patentable, shall be and remain the exclusive property of the Company;

          10.2 to disclose promptly to an authorized representative of the Company all such information
in Employee’s possession as to possible applications and uses thereof;

          10.3 not to file any patent application relating to any such invention or discovery except
with the prior written consent of an authorized officer of the Company;

          10.4 that Employee hereby waives and releases any and all rights Employee may have in and to
such information, inventions and discoveries and hereby assigns to the Company and/or its nominees
all of Employee’s right, title and interest in them, and all Employee’s right, title and interest
in any patent, patent application, copyright or other property right based thereon. Employee hereby
irrevocably designates and appoints the Company and each of its duly authorized officers and agents
as Employee’s agent and attorney-in-fact to act for Employee and in Employee’s behalf and stead to
execute and file any document and to do all other lawfully permitted acts to further the
prosecution, issuance and enforcement of any such patent, patent application, copyright or other
property right with the same force and effect as if executed and delivered by Employee; and

          10.5 at the request of the Company and without expense to Employee, to execute such documents
and perform such other acts as the Company deems necessary or appropriate for the Company to obtain
patents on such inventions in a jurisdiction or

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jurisdictions designated by the Company, and to assign to the Company or its designee such
inventions and any patent applications and patents relating thereto.

     11. Notices. All notices required or permitted under this Agreement shall be in
writing and shall be deemed effective upon personal delivery or upon deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the other party at the
address shown above, or at such other address or addresses as either party shall designate to the
other in accordance with this Section 10.

     12. Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws (and not the law of conflicts) of the State of New York.

     13. Jurisdiction. Except as otherwise provided for herein, each of the parties (a)
submits to the exclusive jurisdiction of any state court sitting in New York County, New York or
federal court sitting in the Southern District of New York in any action or proceeding arising out
of or relating to this Agreement, (b) agrees that all claims in respect of the action or proceeding
may be heard and determined in any such court and (c) agrees not to bring any action or proceeding
arising out of or relating to this Agreement in any other court. Each of the parties waives any
defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives
any bond, surety or other security that might be required of any other party with respect thereto.
Any party may make service on another party by sending or delivering a copy of the process to the
party to be served at the address and in the manner provided for giving of notices in Section 13.
Nothing in this Section 13, however, shall affect the right of any party to serve legal process in
any other manner permitted by law.

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     14. Survival. The provisions of Sections 6, 7, 8, 9, 10, 11, 12 and 13
shall survive the termination of this Agreement.

     15. Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular forms of
nouns and pronouns shall include the plural, and vice versa.

     16. Entire Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes all prior agreements and understandings, whether written or oral, relating
to the subject matter of this Agreement.

     17. Amendment. This Agreement may be amended or modified only by a written
instrument executed by all of the parties hereto.

     18. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of all of the parties hereto and their respective successors and assigns, including
any corporation with which or into which the Company may be merged or which may succeed to its
assets or business; provided, however, that the obligations of the Employee are personal and shall
not be assigned by him.

     19. Miscellaneous.

          19.1 No delay or omission by either party in exercising any right under this
Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the
Company on any one occasion shall be effective only in that instance and shall not be construed as
a bar or waiver of any right on any other occasion.

          19.2 The captions of the sections of this Agreement are for convenience of reference only and
in no way define, limit or affect the scope or substance of any section of this Agreement.

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          19.3 In case any provision of this Agreement shall be invalid, illegal or otherwise
unenforceable, the validity, legality and enforceability of the remaining provisions shall in no
way be affected or impaired thereby.

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

	 	 	 	 	 
	 	 	BIODEL INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Solomon S. Steiner
	 

	 	 	 	 
	 	 	Name: Solomon S. Steiner

Title: Chairman, President and Chief Financial Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	/s/ F. Scott Reding
	 	 	 
	 	 	F. Scott Reding

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APPENDIX A

For purposes of this Agreement, a “Change of Control” shall be deemed to have occurred, if any one
of the following events occurs:

(a) the acquisition by any person or group of beneficial ownership of more than
50% of the outstanding shares of Common Stock of the Company, or, if there are
then outstanding any other voting securities of the Company, such acquisition
of more than 50% of the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors, except for any of the following acquisitions of beneficial ownership
of Common Stock or other voting securities of the Company: (i) by the Company
or any Employee benefit plan (or related trust) sponsored or maintained by the
Company or any entity controlled by the Company; (ii) by Solomon S. Steiner; or
(iii) by any person or entity during the lifetime Solomon S. Steiner if the
shares acquired were beneficially owned by Solomon S. Steiner immediately prior
to their acquisition and the acquisition is a transfer to a trust, partnership,
corporation or other entity in which Solomon S. Steiner owns a majority of the
beneficial interests;

(b) the Company sells all or substantially all of its assets (or consummates
any transaction having a similar effect) or the Company merges or consolidates
with another entity or completes a reorganization unless the holders of the
voting securities of the Company outstanding immediately prior to the
transaction own immediately after the transaction in approximately the same
proportions 50% or more of the combined voting power of the voting securities
of the entity purchasing the assets or surviving the merger or consolidation or
the voting securities of its parent company, or, in the case of a
reorganization, 50% or more of the combined voting power of the voting
securities of the Company; Notwithstanding the foregoing, any purchase or
redemption of outstanding shares of Common Stock or other voting securities by
the Company resulting in an increase in the percentage of outstanding shares or
other voting securities beneficially owned by any person or group shall be
deemed to constitute a reorganization; however, no increase in the percentage
of outstanding shares or other voting securities beneficially owned by Solomon
S. Steiner or any person or entities referred to in (a)(i) or (iii) above
resulting from any redemption of shares or other voting securities by the
Company shall result in a Change of Control;

(c) the Company is liquidated; or

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(d) the Board (if the Company continues to own its business) or the board of
directors or comparable governing body of any successor owner of its business
(as a result of a transaction which is not itself a Change of Control) consists
of a majority of directors or members who are not Incumbent Directors. For
purposes of this Agreement, (A) “voting securities” means securities whose
holders are entitled to vote in the election of all or a majority of the
authorized number of directors at the time the determination of “voting
securities” status is being made and (B) 50% or more of the combined voting
power shall refer to the voting power to elect a majority of the authorized
number of directors determined at that time. “Voting securities” shall not
include preferred stock or other securities whose holders are entitled to vote
in the election of all or a majority of the authorized number of directors upon
the occurrence of some event or circumstance which has not occurred and such
rights to vote are not in effect at the time of the determination of “voting
securities” status. Preferred stock and other securities whose holders are then
entitled to vote for less than a majority of the authorized number of
directors, shall not be considered “voting securities.”

18EX-10.10

 

Exhibit 10.10

	 	 	 
	 
	 	*** TEXT OMITTED AND FILED SEPARATELY

CONFIDENTIAL TREATMENT REQUESTED

SUPPLY AGREEMENT

THIS AGREEMENT is made this 4th day of April, 2005 by and between

Diosynth B.V., a corporation duly organized and existing under the laws of the Netherlands
and having its offices at Kloosterstraat 6, 5349 AB Oss, the Netherlands (hereinafter referred to
as (“Diosynth”),

and

BIODEL Inc. (Biodel), a corporation duly organized and existing under the laws of the State
of Delaware in the United States of America and having its offices at 6 Christopher Columbus
Avenue, Danbury CT 06810 (hereinafter referred to as `BIODEL”),

WITNESSETH:

WHEREAS Diosynth is engaged in the development, manufacture and supply of active substances for
pharmaceutical products;

WHEREAS Diosynth possesses the right to manufacture, use and sell a certain recombinant insulin
product in certain countries;

WHEREAS BIODEL is engaged in the development of its proprietary formulation(s) of insulin and upon
successful development wishes to commercialize or have commercialized such formulation,

WHEREAS BIODEL wishes to purchase from Diosynth recombinant human insulin to be used in its
formulation(s) and Diosynth is willing to supply the recombinant human insulin to BIODEL according
to the terms and conditions as set forth is this Agreement;

NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

Article 1.Supply and Specifications.

	1.1	 	Diosynth herewith agrees to supply BIODEL and BIODEL herewith agrees
to purchase from Diosynth recombinant human insulin (hereinafter referred
to as “Substance”) as further described and specified in Appendix A hereto
attached.

 

2

	1.2	 	During the development of the insulin formulation by BIODEL, Diosynth will supply BIODEL with
the Substance in such quantities as BIODEL shall order and estimated not to exceed the
following:
	 
	 	 	[...***...]

[...***...]
	 
	1.3	 	In case the insulin formulation(s) are developed successfully and in the event BIODEL wishes
to sell its insulin formulation on a commercial basis, Diosynth will supply BIODEL with the
Substance in such quantities as BIODEL shall order. It is foreseen that BIODEL will indicate
the following quantities as its estimated commercial needs for the product:
	 
	 	 	[...***...]

[...***...]

[...***...]

[...***...]
	 
	1.4	 	During the term of this Agreement, Diosynth agrees to keep and maintain a Drug Master File
for the Substance in the United States of America, and to authorize BIODEL to incorporate by
reference all information and documentation contained therein.

Article 2. Forecast and Orders

Within fifteen (15) days from the beginning of each calendar quarter BIODEL shall furnish to
Diosynth a rolling forecast of its requirements of the Substance during the next four calendar
quarters whereby the required quantities for the first calendar quarter shall be a binding order
for supply of the Substance and shall not deviate more than 20% (twenty percent) from the forecast
formerly provided to Diosynth.

Article 3. Delivery

	3.1	 	Diosynth will deliver all orders for supply which are within the forecast given according to
Article 2 herein within the date stipulated in the order. Diosynth will use its best
commercial efforts to deliver as soon as possible any quantities in excess of the purchase
order as determined in Article 1.3.

	3.2	 	Diosynth will deliver the Product to BIODEL within the date stipulated in the firm purchase
order.

 

3

	3.3	 	Delivery of each batch of each Substance shall be effectuated DDP BIODEL’s or its designee’s
manufacturing facility (INCOTERMS 2000). Each batch of the Substance shall be accompanied by a
certificate of analysis and an invoice.
	 
	3.4	 	Upon dispatch samples of each batch shall be taken at random and sealed by Diosynth and
thereupon shall be stored for reference by Diosynth for a period of 24 (twenty-four) months.

Article 4. Non-conformity

	4.1	 	All batches of Substance delivered by Diosynth to BIODEL shall comply with the specifications
as set forth in Appendix A and shall be manufactured according to applicable regulations of
Good Manufacturing Practices.
	 
	4.2	 	Within thirty (30) days of delivery of the batches of Substance, BIODEL shall inform Diosynth
of any non-conformance of the delivered batch(es) with the specifications set out in Appendix
A. In the event it appears that such non-conformance is due to faulty manufacture of the
relevant batch(es) of Substance, which fact shall be established on basis of the corresponding
sealed samples retained by Diosynth, Diosynth shall replace such batches free of charge. In
the event BIODEL does not notify Diosynth of any non-conformance within said period, the
relevant batches shall be deemed to be in conformance with the specifications and BIODEL shall
then have no right to reject the same.
	 
	4.3	 	If the parties fail to agree on whether a batch is defective or on the responsibility
therefor, the matter shall be finally determined by an expert to be nominated by agreement
between the parties, or failing agreement, by an expert, to be nominated by the President of
the International Chamber of Commerce. The said expert shall act as an expert and not as an
arbitrator, but his opinion shall be binding upon the parties and his fees and expenses shall
be borne by the party against which his decision is rendered.

Article 5. Price and Payment

	5.1	 	The purchase price of the Substance for the year 2005 shall be [...***...], whereas for supply of
the quantities in 2006 the purchase price will be [...***...].
	 
	5.2	 	Diosynth is willing to accept [...***...] as the commercial market price in the year 2004. In
this respect “commercial market price” is considered to be the price for annual quantities
greater than [...***...]. This commercial market price in the year 2004 will be used as a basis
for the determination of the commercial market price in subsequent years. To that end, on or
before September 30 of each calendar year, parties will in good faith determine the commercial
market price for the product for the following calendar year. In any case this price will not
increase, on a year by year basis, with more than the increase of the labor cost index in the
Netherlands, as published by the C.B.S. (“Central Bureau voor de Statistiek”). Diosynth will
not offer the Substance to other customers at a lower price, provided the quality and the
quantity of the Substance to that other customer is

 

4

	 	 	  substantially comparable with the quantity and quality of the Substance supplied to Biodel.

	5.3	 	Payment shall be made by BIODEL within thirty (30) days of the date of Diosynth’s invoice.

Article 6.Warranties and Representations

6.1 Diosynth warrants and represents to BIODEL that

	 	(a)	 	All Substance manufactured by Diosynth for BIODEL shall be manufactured in compliance with
the specifications as set forth in Annex A hereto;
	 
	 	(b)	 	All Substance manufactured by Diosynth for BIODEL shall be manufactured in compliance with
all applicable laws and regulations including, but not limited to, the applicable Good
Manufacturing Practices for bulk pharmaceutical ingredients;
	 
	 	(c)	 	All Substance supplied by Diosynth to BIODEL shall be manufactured at Diosynth’s plants in
Oss, the Netherlands and Gisors, France.
	 
	 	(d)	 	All Substance manufactured by Diosynth for supply to BIODEL shall be manufactured in
compliance with Diosynth’s Drug Master File filed with the United States Food and Drug
Administration`.

	6.2	 	EXCEPT AS EXPRESSLY PROVIDED HEREIN, DIOSYNTH MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, AS
TO THE QUALITY OR FITNESS FOR PURPOSE OF THE SUBSTANCE SUPPLIED HEREUNDER.

Article 7. Inspection

BIODEL shall have the right to inspect Diosynth’s manufacturing facilities during mutually agreed
upon times to ensure that Diosynth’s manufacture of the Substance is in compliance with applicable
regulation. The right to inspect granted to BIODEL shall not be deemed as granting to BIODEL access
to any trade secrets owned by Diosynth.

Article 8. Liability — Indemnification

	8.1	 	As manufacturer of the finished products, BIODEL shall be liable for and BIODEL shall
indemnify and hold Diosynth harmless from and against all damages, claims, causes of action,
settlement costs, including reasonable attorneys’ fees, losses or liabilities of any kind
asserted by third persons which arise from the manufacture sale and/or use of finished
products, unless such damages, claims, causes of action, settlement costs, losses or
liabilities arise out of or are attributable to any defect in the Substance due to faulty
manufacture by Diosynth.
	 
	8.2	 	Diosynth shall indemnify and hold BIODEL harmless from and against all damages, claims,
causes of action, settlement costs, including reasonable attorneys’ fees, losses or
liabilities of any kind asserted by third persons which arise out of or are attributable to
any defect in the Substance due to faulty manufacture by Diosynth.

 

5

	8.3	 	Neither party shall be liable to the other under this Agreement for any indirect or
consequential loss or damage suffered or incurred by the other party.

Article 9. Term and Termination

	9.1	 	This Agreement shall be effective as of the date first written above and shall continue to be
in force until terminated as provided herein.

	9.2	 	Notwithstanding the preceding paragraph, this Agreement may be terminated forthwith by
registered or certified mail:

	 	(a)	 	by both parties for any reason or no reason with a two year written notice; or
	 
	 	(b)	 	by either party in the event of any material breach by the other party of any of the terms
of this Agreement, unless the other party corrects such breach within said sixty (60) days period;
	 
	 	(c)	 	forthwith by either party, in the event of the other party’s liquidation, bankruptcy or
state of insolvency
	 
	 	(d)	 	by BIODEL, with 30 days written notice if a controlling regulatory authority either fails
to approve or withdraws approval of the insulin formulation(s). In that event, BIODEL will
responsible for full payment for all API delivered to BIODEL and for all API quantities on order.
In the event that the product is withdrawn by regulatory decree in a portion, but not all of the
market, then BIODEL shall have the right to reduce the minimum quantities with 30 days written
notice.

	9.3	 	In the event Diosynth shall terminate for any reason or no reason pursuant to clause 9.2(a) herein,
Diosynth agrees that it will continue to supply BIODEL pursuant to the terms of this Agreement
until BIODEL shall have qualified with all requisite regulatory approvals in the United States a
third party supplier of recombinant human insulin to be used in its formulation; provided that
BIODEL shall use commercial best efforts to expeditiously qualify such third party supplier and
such qualification shall occur no later than three (3) years after date of notification of
termination.

Article 10. Mutual Confidentiality

	10.1	 	It is recognized by both BIODEL and Diosynth that during the term of this Agreement, both
BIODEL and Diosynth may disclose certain information which is confidential and proprietary.
Both parties agrees that they shall keep such Confidential Information confidential and shall
not disclose such Confidential information to any third party and shall not use such
Confidential Information for other purposes than as required to perform its obligations under
this Agreement. For purposes of this Agreement, Confidential Information shall include all
information disclosed hereunder in writing and clearly marked as “Confidential”, except any
portion thereof which:

	 	(a)	 	is known to either party before receipt thereof under this Agreement;

	 
	 	(b)	 	is disclosed in good faith to either party after acceptance
of this Agreement by a third party lawfully in possession of such
information
and not under an obligation of non-disclosure;
	 
	 	(c)	 	is or becomes part of the public domain through no fault of either party; or

	 
	 	(d)	 	is required by law to be disclosed.

	10.2	 	The obligations of both parties relating to Confidential Information shall expire upon ten
(10) years after expiration of termination of this Agreement.

 

6

Article 11. Force Majeure

	11.1	 	Any delay or failure in their performance of any of the duties or obligations of either party
hereto (except the payment of money) shall not be considered a breach of this Agreement and
the time required for performance shall be extended for a period equal to the period of such
delay, provided that such delay has been caused by or is the result of any acts of god, acts
of the public enemy, insurrections, riots, embargoes, labor disputes, including strikes,
lockouts, job actions or boycotts, fires, explosions, floods, shortages of material or energy
or other unforeseeable causes beyond the control and without the fault or negligence of the
party so affected.
	 
	11.2	 	The party so affected shall give prompt notice to the other party of such cause and shall take
whatever reasonable steps are necessary to relieve the effect of such cause as rapidly as possible.

Article 12. Hardship

Should it appear that at any time during the lifetime of this Agreement and for any reason, the
terms of this Agreement are not workable from an economical point of view, the parties to this
Agreement at the request of the party concerned shall meet within two (2) months from the date of
that request and expend their best efforts to re-establish the terms of this Agreement in a
mutually satisfactory way.

Article 13. Assignment

The parties shall not assign this Agreement or any part thereof without the prior written consent
of the other party; provided, however, (1) a party may assign this Agreement without consent of the
other to any company which through a majority of shares or otherwise directly or indirectly
controls or is controlled by or is under common control with such party; or (2) a party may assign
or sell the same without such consent in connection with the transfer or sale of substantially its
entire business to which this Agreement pertains or in the event of its merger or consolidation
with another company. Any permitted assignee shall assume all obligations of its assignor under
this Agreement. No assignment shall relieve any party of responsibility for the performance of any
accrued obligation which such party then has hereunder.

Article 14. Applicable Law and Dispute Resolution

	14.1	 	The validity, construction and performance of this Agreement shall be governed by and
construed in accordance with the internal laws of the state of New York in the United States
of America.
	 
	14.2	 	The parties shall attempt in good faith to resolve promptly any dispute arising out of or
relating to this Agreement by negotiation. If the matter can not be resolved in the normal
course of business any interested party shall give the other party written notice of any such
dispute not resolved, after which the dispute shall be referred to more senior executives of
both parties, who shall likewise attempt to resolve the dispute.

 

7

	14.3	 	If the dispute has not been resolved by negotiation within forty-five (45) days of the
disputing party’s written notice, or if the parties fail to meet within twenty (20) days as
from such notice, the parties shall endeavor to settle the dispute by mediation under the
supervision of and in accordance with the CPR Model Mediation Procedure for Business Dispute
in Europe. Unless otherwise agreed, both parties or each individual party may request the CPR
to appoint an independent mediator. The language of mediation shall be English and the seat of
mediation shall be agreed upon by both parties and, in the event parties do not timely agree,
the seat will be determined by the mediator.

	14.4	 	If the dispute has not been resolved by non-binding means as provided in 14.3 hereof within
ninety (90) days of the initiation of such procedure, the dispute shall be finally and
exclusively settled by arbitration in The Hague, or any other mutually agreed upon venue under
the Uncitral Arbitration Rules by three (3) independent arbitrators appointed in accordance
with said Rules. The appointing authority shall be The London Court of International
Arbitration in London, England. The language of the arbitration shall be English. The
arbitration shall be in lieu of any other remedy and the award shall be final, binding and
enforceable by any court having jurisdiction for that purpose.

	14.5	 	This Article shall, however, not be construed to limit or to preclude either party from
bringing any action in any court of competent jurisdiction for injunctive or other provisional
relief as necessary or appropriate.

Article 15. Miscellaneous Provisions

	15.1	 	All stipulations contained in this Agreement shall be so construed as not to infringe the
provisions of any applicable law or regulation. To the extent, and only to the extent that any
stipulation does infringe any such provisions, the same shall be deemed to be void and shall
be replaced by a stipulation conforming to the said provision and reflecting the original
purpose of the infringing stipulation as much as possible.
	 
	15.2	 	No modification of this Agreement shall be binding unless it is in writing and signed by the
parties hereto.

	 
	15.3	 	The failure by any party at any time to enforce any of the terms, provisions or conditions of
this Agreement or to exercise any right hereunder shall not constitute a waiver of the same or
affect that party’s right thereafter to enforce or exercise the
same right.
	 
	15.4	 	All notices and other communications hereunder shall be in writing and will be deemed to have
been duly given if delivered or mailed (registered mail where specifically required according to
this Agreement) as follows:

	 	 	 	 	 
	 

	 	As to Diosynth:
	 	Diosynth B.V.
	 

	 	 	 	Kloosterstraat 6
	 

	 	 	 	P.O. Box 20
	 

	 	 	 	5340 BH Oss
	 

	 	 	 	The Netherlands
	 

	 	 	 	Attention: Adriaan Sanders, API Operations Manager
	 

	 	 	 	Telephone: 31 412 662058
	 

	 	 	 	Facsimile: 31 412 652311

 

8

	 	 	 	 	 
	 

	 	As to BIODEL:
	 	Biodel Inc.
	 

	 	 	 	6 Christopher Columbus Ave.
	 

	 	 	 	Danbury CT 06810
	 

	 	 	 	Attention: Solomon Steiner, Chairman and CEO
	 

	 	 	 	Telephone: 203-798-3600
	 

	 	 	 	Facsimile: 203-798-3601

	15.5	 	The relationship of Diosynth to BIODEL established by this Agreement is that of an
independent contractor. Nothing contained in this Agreement shall be construed to constitute
Diosynth as a partner, agent or joint venturer with BIODEL or as a participant in a joint or
common undertaking with BIODEL.

	15.6	 	Neither party shall without the prior written consent of the other party refer to the other
party in any promotional material.
	 
	15.7	 	This Agreement and its Appendices set forth the entire agreement between the parties
concerning the subject matter hereof and supersedes all written or oral prior agreements or
understandings with respect thereto. Neither party’s general conditions of sale or purchase
shall be applicable.

AS AGREED UPON and signed in duplicate by authorized representatives of each party at

	 	 	 	 	 	 	 	 	 
	Oss,	 	 	 	 	 	Danbury,
	Diosynth BV	 	 	 	Biodel Inc.
	 
	 	 	 	 	 	 	 	 
	/s/

	 	A. Sanders
	 	 	 	/s/
	 	Solomon S. Steiner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	By:

	 	Adriaan Sanders
	 	 	 	By:
	 	Solomon S. Steiner, Ph.D.
	Title:

	 	API Operations Manager
	 	 	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 	 	 	 	 
	/s/

	 	G. de Lavalette	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:

	 	Gert Jan Renardel de Lavalette	 	 	 	 	 	 
	Title:

	 	Marketing and
Sales Manager	 	 	 	 	 	 

 

9

APPENDIX A—Page 1 of 3

DIOSYNTH PRODUCT SPECIFICATIONS

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