Document:

Exhibit 10.1

 

AMENDMENT TO JUNE 28, 2000 LICENSE AGREEMENT

AND SETTLEMENT AGREEMENT

 

This Amendment (“the Amendment”) to the June 28, 2000 License Agreement (“License Agreement”) dated and effective as of the 30th day of July, 2012 (“Amendment Effective Date”) and Settlement Agreement, is by and between the following parties: a) Stryker Corporation, a corporation organized under the laws of the State of Michigan having its principal office at 2825 Airview Boulevard, Kalamazoo, Michigan 49002, on its own behalf and on behalf of its Affiliates,(“Stryker”); and b)  ArthroCare Corporation, a corporation organized under the laws of the State of Delaware having its principal office at 7000 W. William Cannon Drive, Austin, Texas 78735, on its own behalf and on behalf of its Affiliates (“ArthroCare”), collectively referred to herein as the “Parties.”  Defined terms in the License Agreement have the same meaning herein.

 

I.                                         RECITALS

 

Whereas, on June 28, 2000, the Parties entered into a certain License Agreement related to ArthroCare’s family of patents related to the use of RF energy in surgical procedures (“License Agreement”);

 

Whereas, ArthroCare designs its Disposable Products for single use and has and will continue to instruct its customers that such Disposable Products are meant for single patient use;

 

Whereas, since execution of the License Agreement, Stryker has paid royalties on its *** products, including ***;

 

Whereas, in mid-2009, Stryker began phasing out sales of its *** and began selling ***, but on which Stryker did not pay a royalty to ArthroCare under the License Agreement;

 

Whereas, on January 7, 2012, several of ArthroCare’s Licensed Patents expired;

 

Whereas, on or about May 22, 2012, the Parties participated in a Mediation to resolve disputes including *** claims alleged by ArthroCare; and

 

Whereas, the Parties have reached agreement and now enter into this Amendment to amend the License Agreement and this Settlement Agreement to finally resolve their disputes under the License Agreement;

 

NOW, THEREFORE, in consideration of the mutual promises contained in this Amendment, the Parties agree as follows:

 

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

 

 

II.                                     Amendment to License Agreement

 

The Parties hereby replace existing Section 9.1 of the License Agreement with the following:

 

“9.1                           The licenses granted under Article 2 shall continue and remain in effect until the expiration or termination of the last-to-expire patent within the Licensed Patent Rights as defined in the License Agreement and including at least the patents shown on Exhibit A hereto.  The payment obligations of Stryker under Article 3 and record-keeping and reporting obligations of Stryker under Article 4 shall remain in effect only for Licensed Products made, used, sold, offered for sale or imported through June 1, 2015 and no royalty payments will be owed for products made, used, sold, offered for sale or imported after June 1, 2015.”

 

III.                                 Settlement Agreement

 

In addition to the Amendment and to settle their disputes, the Parties further agree as follows:

 

A.           Royalties on *** products

 

1.               Stryker shall pay royalties at the rates set forth in the License Agreement on all sales of its licensed *** products (***) through June 1, 2015.

 

2.               Within ten days of the execution of this Amendment, or by July 31, 2012, whichever occurs first, Stryker shall pay all royalties currently owed pursuant to the terms of the License Agreement for its past sales of its *** products;

 

B.             Reprocessed ArthroCare Disposable Products

 

1.               Stryker Sustainability Solutions will mark all of its reprocessed ArthroCare Disposable Products in the Field of Use substantially as shown in the picture attached as Exhibit B to this Amendment (which shows the words “Reprocessed by Stryker Sustainability Solutions”).  Stryker will implement this marking by December 31, 2012 to current ArthroCare reprocessed Disposable Products and shall continue this marking on all reprocessed ArthroCare Disposable Products that are reasonably susceptible of being so marked for as long as Stryker sells reprocessed ArthroCare Disposable Products in the Field of Use.

 

2.               ***;

 

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

 

2

 

3.               The Parties acknowledge and agree that in selling reprocessed ArthroCare Disposable Products in the Field of Use Stryker is not acting as ArthroCare’s agent, affiliate or licensee and that ArthroCare has not authorized, consented to,  or exercised any control over Stryker’s reprocessing of ArthroCare Disposable Products in the Field of Use or the marketing or sale of such products.

 

C.             Payment by Stryker

 

1.               Stryker agrees to pay $*** to ArthroCare within ten days of the execution of this Amendment, or by July 31, 2012, whichever occurs first, as consideration ***.

 

2.               The Parties acknowledge and agree that this payment is not, and shall not be construed to be, a royalty under the License Agreement.

 

D.            Releases

 

1.               ArthroCare hereby waives any and all existing claims, known or unknown, to ArthroCare, under the License Agreement or otherwise, related to ***.

 

2.               Provided that Stryker complies with ***, ArthroCare releases any future claims against Stryker related to ***.

 

3.               The Parties hereby release each other from all claims and contentions (including defenses of ***) relating in any way to the License Agreement or the Licensed Patent Rights thereunder.

 

E.              Other

 

1.               Neither party shall be deemed a “prevailing party” from the Mediation as referenced in Section 10.7 of the License Agreement, and each Party shall bear all of its own costs incurred related to the Mediation.

 

2.               All other terms and provisions in the License Agreement shall remain in full force and effect and shall apply to this Amendment.

 

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

 

3

 

	
AGREED   THIS 30th DAY OF JULY, 2012:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Stryker   Corporation
    	
 
    	
ArthroCare   Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Its:
    	
 
    	
 
    	
Its:
    	
 
    

 

4

 

Exhibit B to

 

AMENDMENT TO JUNE 28, 2000 LICENSE AGREEMENT

 

Marking of reprocessed RF wands

 

 

5Exhibit 10.1

 

AMENDMENT OF LEASE

 

THIS AMENDMENT is made and entered into as of 25th day of October 2012, by and between NPA HARTFORD LLC, a Delaware limited liability company (“Landlord”), and COLT DEFENSE LLC, a Delaware limited liability company (“Tenant”).

 

RECITALS

 

A.                                   Landlord and Tenant are parties to a Net Lease dated as of October 26, 2005 (the “lease”).

 

B.                                     Landlord and Tenant wish to amend the Lease as provided herein, among other things, to extend the term of the lease.

 

NOW, THEREFORE, In consideration of the premises and the mutual covenants hereinafter set forth, the Parties do hereby agree as follows:

 

1.                                       All capitalized terms used in this Amendment that are defined in the Lease shall have the same meanings in this Amendment as they do in the Lease.

 

2.                                       Paragraph 1.2 of the lease is deleted and the following is substituted In lieu thereof:

 

Term.  The period of Ten (10) Lease Years, plus any partial calendar month at the beginning of the Term, beginning on the Commencement Date and ending on the Termination Date, as the same may be from time to time extended. The Term ending on the Termination Date, is hereinafter sometimes referred to as the “Initial Term.”

 

3.                                       Paragraph 1.4 of the lease is deleted and the following is substituted in lieu thereof:

 

Termination Date. October 25, 2015, as duly extended or earlier terminated.

 

4.                                       Paragraph 1.8 of the lease is amended to insert at the end:

 

	
Year   8
    	
 
    	
EIGHT   HUNDRED TWENTY FIVE THOUSAND and 00/100 Dollars ($825,000.00)
    	
 
    	
SIXTY   EIGHT THOUSAND SEVEN HUNDRED FIFTY and 00/100 Dollars ($68,750.00)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Year   9
    	
 
    	
EIGHT   HUNDRED FORTY ONE THOUSAND FIVE HUNDRED and 00/100 Dollars ($841,500.00)
    	
 
    	
SEVENTY   THOUSAND ONE HUNDRED TWENTY FIVE and 00/100 Dollars ($70,125.00)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Year   10
    	
 
    	
EIGHT   HUNDRED FIFTY EIGHT THOUSAND THREE HUNDRED THIRTY SIX and 00/100 Dollars   ($858,336.00)
    	
 
    	
SEVENTY   ONE THOUSAND FIVE HUNDRED TWENTY EIGHT and 00/100 Dollars ($71,528.00)
    

 

 

5.                                      Section 19.1 of the Lease is amended to delete and replace the addresses for notice of landlord with the following, and the following is substituted in lieu thereof:

 

	
LANDLORD:
    	
 
    	
NPA   HARTFORD LLC
    
	
 
    	
 
    	
c/o Sciens Capital Management LLC
    
	
 
    	
 
    	
667   Madison Avenue
    
	
 
    	
 
    	
New   York, NY 10065
    
	
 
    	
 
    	
ATTN:   Daniel J. Standen
    
	
 
    	
 
    	
Tel: (212) 471-6100
    
	
 
    	
 
    	
Fax: (212) 471-6199
    
	
 
    	
 
    	
 
    
	
With   a Courtesy Copy to:
    	
 
    	
FINN   DIXON & HERLING LLP
    
	
 
    	
 
    	
177   Broad Street, 15th Floor
    
	
 
    	
 
    	
Stamford,   CT 06901-2048
    
	
 
    	
 
    	
ATTN: Brett W. Dixon, Esq.
    
	
 
    	
 
    	
Tel: (203) 325-5000
    
	
 
    	
 
    	
Fax: (203) 325-5001
    

 

6.                                      Each of Tenant and Landlord does hereby represent to the other that no broker or agent brought about or participated in this Amendment and agrees to indemnify and hold harmless the other from and against any and all liabilities and expenses whatsoever, including, without limitation, reasonable attorneys’ fees, arising from any such claims based on any acts of such party.

 

7.                                       Except to the extent expressly amended by this Amendment, the Lease remains in full force and effect in accordance with its terms.  All references in the Lease to the Lease shall hereafter refer to the Lease as amended by this Amendment. This Amendment shall be binding upon and inure to the benefit of each of the parties and their permitted successors and assigns under the Lease. This Amendment will be governed by and construed under the laws described in Section 21.11 of the Lease. This Amendment is not to be recorded.  It is understood that this Amendment shall not be binding upon either party unless and until both parties have executed and delivered an original counterpart of this Amendment to the other party (which delivery may be by facsimile, pdf or other electronic versions provided an original is also subsequently and promptly provided). This Amendment may be executed in counterparts, each of which shall be deemed an original and together which shall constitute one and the same agreement. Each signatory of this Amendment represents hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for which such signatory is acting.

 

[Remainder of Page Intentionally left Blank]

 

 

[SIGNATURE PAGE TO AMENDMENT TO LEASE]

 

Dated at Hartford, Connecticut as of the day and year first above written.

 

	
NPA   HARTFORD LLC
    	
 
    	
COLT   DEFENSE LLC
    
	
 
    	
 
    	
 
    
	
By   NPA Management LLC
    	
 
    	
 
    
	
Its   Managing Member
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Daniel Standen
    	
 
    	
By:
    	
/s/   Gerald R. Dinkel
    
	
 
    	
Name:   Daniel Standen
    	
 
    	
 
    	
Gerald   R. Dinkel
    
	
 
    	
Authorized   Member
    	
 
    	
 
    	
President   and Chief Executive Officer

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