Document:

EX-10.1

 

Exhibit 10.1

EXECUTION VERSION

THIRD AMENDMENT

TO

CREDIT AGREEMENT

          THIS THIRD AMENDMENT TO CREDIT AGREEMENT (the “Agreement”) is being executed and
delivered as of November 16, 2007 by and among CBIZ, Inc., a Delaware corporation (the
“Company”), the “Guarantors” as defined in the Credit Agreement, the several financial
institutions from time to time party to the Credit Agreement referred to and defined below
(collectively, the “Lenders”), and Bank of America, N.A. (“Bank of America”), as
administrative agent for the Lenders (in such capacity, the “Agent”). Undefined
capitalized terms used herein shall have the meanings ascribed to such terms in such Credit
Agreement as defined below, and section references used herein, shall, unless otherwise specified,
refer to sections of such Credit Agreement as defined below.

W I T N E S S E T H:

          WHEREAS, the Company, the Lenders and the Agent have entered into that certain Credit
Agreement dated as of February 13, 2006 (as heretofore amended, restated, supplemented or otherwise
modified, the “Credit Agreement”), pursuant to which, among other things, the Lenders have
agreed to provide, subject to the terms and conditions contained therein, certain loans and other
financial accommodations to or for the benefit of the Company;

          WHEREAS, in connection with the Credit Agreement, the Guarantors have each executed and
delivered in favor of the Agent and the Lenders a certain Guaranty pursuant to which the Guarantors
have guaranteed the Company’s obligations under the Credit Agreement;

          WHEREAS, the Company has requested that the Lenders agree, and subject to the terms and
conditions set forth herein, the Lenders have agreed, to amend the Credit Agreement in certain
respects as hereinafter set forth.

          NOW, THEREFORE, in consideration of the foregoing premises, the terms and conditions stated
herein and other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the Company, the Guarantors, the Majority Lenders and the Agent, such parties
hereby agree as follows:

          1. Amendment. Subject to the satisfaction of the conditions set forth in
Paragraph 2 of this Agreement, the Credit Agreement is hereby amended as follows (unless
otherwise specified, section references used in this section shall refer to such sections of the
Credit Agreement):

     (a) The definition of “Applicable Margin” set forth in Section 1.01 is hereby amended and
restated in its entirety as follows:

          “Applicable Margin” shall mean on any date the applicable percentage
set forth below based upon the Total Leverage Ratio as calculated after adjusting

 

 

the Leverage Ratio shown in the Compliance Certificate then most recently delivered
to the Agent and the Lenders:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revolving Loans/ Letters of Credit	 	 
	Total Leverage	 	Base	 	Eurodollar	 	Fees
	Ratio	 	Rate	 	Rate	 	Letter of Credit Fees	 	Commitment Fee
	≥ 4.00:1.00
	 	 	1.000	%	 	 	2.000	%	 	 	2.000	%	 	 	0.400	%
	≥ 3.00:1.00,
but <
4.00:1.00
	 	 	0.625	%	 	 	1.625	%	 	 	1.625	%	 	 	0.325	%
	≥ 2.00:1.00,
but <
3.00:1.00
	 	 	0.375	%	 	 	1.375	%	 	 	1.375	%	 	 	0.275	%
	≥ 1.00:1.00,
but <
2.00:1.00
	 	 	0.125	%	 	 	1.125	%	 	 	1.125	%	 	 	0.225	%
	< 1.00:1.00
	 	 	0.000	%	 	 	0.875	%	 	 	0.875	%	 	 	0.175	%

          ; provided however that, (i) for the period from the date on
which the Third Amendment dated as of November 16, 2007 to this Agreement shall have
become effective to and including the date of the delivery of the Compliance
Certificate for the fiscal year ending December 31, 2007, the Applicable Margin
shall be determined as if the Total Leverage Ratio for such period were greater than
or equal to 2.00:1.00 but less than 3.00:1.00, and (ii) if the Company shall have
failed to deliver to the Lenders by the date required hereunder any Compliance
Certificate pursuant to Section 7.02(b), then from the date such Compliance
Certificate was required to be delivered until the date of such delivery the
Applicable Margin shall be determined as if the Total Leverage Ratio for such period
was greater than or equal to 4.00:1.00. Each change in the Applicable Margin (other
than pursuant to clause (i) immediately above, which change shall take
effect as provided in such clause) shall take effect with respect to all outstanding
Loans on the third Business Day immediately succeeding the day on which such
Compliance Certificate is received by the Agent. Notwithstanding the foregoing, no
reduction in the Applicable Margin shall be effected if a Default or an Event of
Default shall have occurred and be continuing on the date when such change would
otherwise occur, it being understood that on the third Business Day immediately
succeeding the day on which such Default or Event of Default is either waived or
cured (assuming no other Default or Event of Default shall be then pending), the
Applicable Margin shall be reduced (on a prospective basis) in accordance with the
then most recently delivered Compliance Certificate (or clause (ii) above,
as applicable). Notwithstanding anything to the contrary contained in this
definition, the determination of the Applicable Margin for any period shall be
subject to the provisions of Section 2.11(c).

2

 

          (b) The definition of “Revolving Termination Date” set forth in Section 1.01 is hereby amended
and restated in its entirety as follows:

          “Revolving Termination Date” means the earlier to occur of:

          (a) November 16, 2012; and

          (b) the date on which the Revolving Loan Commitments terminate in accordance
with the provisions of this Agreement.

          (c) Section 2.11 is amended to add the following provision to the end of such section:

               (c) If, as a result of any restatement of or other adjustment to the financial
statements of the Company or for any other reason, the Company or the Lenders determine that
(i) the Total Leverage Ratio as calculated by the Borrower as of any applicable date was
inaccurate and (ii) a proper calculation of the Total Leverage Ratio would have resulted in
higher pricing for such period, the Company shall immediately and retroactively be obligated
to pay to the Agent for the account of the Lenders, promptly on demand by the Agent (or,
after the occurrence of an actual or deemed entry of an order for relief with respect to the
Company under the Bankruptcy Code, automatically and without further action by the Agent,
any Lender or the Issuing Bank), an amount equal to the excess of the amount of interest and
fees that should have been paid for such period over the amount of interest and fees
actually paid for such period. This paragraph shall not limit the rights of the Agent, any
Lender or the Issuing Bank, as the case may be, under Section 2.09(c), or
3.03(c) or under Article IX. The Company’s obligations under this paragraph
shall survive the termination of the Commitments and the repayment of all other Obligations
hereunder.

          (d) Section 7.03(d) is amended to add the following provision to the end of such section:

          , including any determination by the Company referred to in Section 2.11(c).

          (e) Section 7.01(c) is hereby deleted in its entirety.

          2. Effectiveness of this Agreement; Conditions Precedent. The provisions of
Paragraph 1 of this Agreement shall be deemed to have become effective as of the date of
this Agreement, but such effectiveness shall be expressly conditioned upon:

          (a) the receipt by the Agent of an executed counterpart of this Agreement executed and
delivered by duly authorized officers of the Company and each of the Lenders;

          (b) the receipt by the Agent of a secretary’s certificate, in form, scope and substance
acceptable to the Agent, from the secretary or assistant secretary of the Company, certifying (i)
as to the Company’s board of directors’ resolutions authorizing the Company’s execution, delivery
and performance of this Agreement and the Credit Agreement as amended by this Agreement (with
copies thereof attached to such certificate), (ii) as to the incumbency of the

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officer of the Company to executes and delivers this Agreement and as to such officer’s
signature or facsimile thereof and (iii) as to the currency and completeness of the Company’s
certificate of incorporation and by-laws (with copies thereof attached to such certificate);

          (c) the receipt by the Agent of a legal opinion, in form, scope and substance acceptable to
the Agent, from the Company’s general counsel, with respect to this Agreement and the Credit
Agreement as amended by this Agreement.

          (d) payment in full, in immediately available funds, of (i) an amendment fee payable to each
Lender in the amount of 0.05% of such Lender’s Revolving Loan Commitment and (ii) the fees payable
to Bank of America pursuant to that certain fee letter dated as of October 19, 2007 among Bank of
America, Banc of America Securities LLC and the Company (all of which fees the Company hereby
covenants and agrees to pay concurrently with the execution and delivery of this Agreement).

          3. Representations and Warranties.

     (a) The Company hereby represents and warrants that this Agreement and the Credit
Agreement as amended by this Agreement constitute the legal, valid and binding obligations
of the Company enforceable against the Company in accordance with their terms.

     (b) The Company hereby represents and warrants that its execution, delivery and
performance of this Agreement and the Credit Agreement as amended by this Agreement have
been duly authorized by all proper corporate action, do not violate any provision of its
certificate of incorporation or bylaws, will not violate any law, regulation, court order or
writ applicable to it, and will not require the approval or consent of any Governmental
Authority, or of any other third party under the terms of any contract or agreement to which
the Company or any of the Company’s Subsidiaries is bound.

     (c) The Company hereby represents and warrants that (i) no Default or Event of Default
has occurred and is continuing or will have occurred and be continuing and (ii) all of the
representations and warranties of the Company contained in the Credit Agreement and in each
other Loan Document (other than representations and warranties which, in accordance with
their express terms, are made only as of an earlier specified date) are, and will be, true
and correct as of the date of the Company’s execution and delivery of this Agreement in all
material respects as though made on and as of such date.

     (d) The Company hereby represents and warrants that there has not occurred since
December 31, 2006, any event or circumstance that has resulted or could reasonably be
expected to result in a Material Adverse Effect.

     (e) The Company hereby represents and warrants that there are no actions, suits,
investigations, proceedings, claims or disputes pending, or to the best knowledge of the
Company, threatened or contemplated, at law, in equity, in arbitration or before any
Governmental Authority, against the Company, its Subsidiaries or any of their respective
properties which purport to affect or pertain to this Agreement, the Credit Agreement or

4

 

any other Loan Document or any of the transactions contemplated hereby or thereby, or
which could reasonably be expected to have a Material Adverse Effect

          4. Reaffirmation, Ratification and Acknowledgment; Reservation. The Company and each
Guarantor hereby (a) ratify and reaffirm all of their payment and performance obligations,
contingent or otherwise, under each Loan Document to which they are a party, (b) agree and
acknowledge that such ratification and reaffirmation are not a condition to the continued
effectiveness of such Loan Documents, and (c) agree that neither such ratification and
reaffirmation, nor the Agent’s or any Lender’s solicitation of such ratification and reaffirmation,
constitutes a course of dealing giving rise to any obligation or condition requiring a similar or
any other ratification or reaffirmation from the Company or such Guarantors with respect to any
subsequent modifications to the Credit Agreement or the other Loan Documents. The Credit Agreement
as amended hereby and each of the other Loan Documents shall remain in full force and effect and is
hereby ratified and confirmed. Neither the execution, delivery nor effectiveness of this Agreement
shall operate as a waiver of any right, power or remedy of the Agent or the Lenders, or of any
Default or Event of Default (whether or not known to the Agent or the Lenders), under any of the
Loan Documents, all of which rights, powers and remedies, with respect to any such Default or Event
of Default or otherwise, are hereby expressly reserved by the Agent and the Lenders. This
Agreement shall constitute a Loan Document for purposes of the Credit Agreement.

          5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF ILLINOIS; PROVIDED THAT THE PARTIES SHALL RETAIN ALL RIGHTS ARISING
UNDER FEDERAL LAW.

          6. Agent’s Expenses. The Company hereby agrees to promptly reimburse the Agent for
all of the reasonable out-of-pocket expenses, including, without limitation, attorneys’ and
paralegals’ fees, it has heretofore or hereafter incurred or incurs in connection with the
preparation, negotiation and execution of this Agreement.

          7. Counterparts. This Agreement may be executed in counterparts and all of which
together shall constitute one and the same agreement among the parties.

* * * *

5

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	CBIZ, INC.

 	 
	 	By  
	 /s/ Ware Grove
	 
	 	 	Name:  	Ware Grove 	 
	 	 	Title:  	Senior Vice President

& Chief Financial Officer 	 
	 

Signature Page to

Third Amendment to

Credit Agreement

 

 

THE GUARANTORS:

CBIZ GEBCORP INSURANCE, INC (FORMERLY BENMARK, INC.)

CBIZ ACCOUNTING, TAX & ADVISORY OF ATLANTA, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF MARYLAND, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF BOCA RATON, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF CHICAGO, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF COLORADO, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF COLUMBIA, INC.

CBIZ ACCOUNTING, TAX & ADVISORY OF KANSAS CITY, INC.

CBIZ ACCOUNTING, TAX & ADVISORY OF NEW YORK, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF OHIO, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF NORTHERN CALIFORNIA, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF ORANGE COUNTY, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF PHOENIX, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF SAN DIEGO, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF SOUTH FLORIDA, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF TOPEKA, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF WICHITA, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF WISCONSIN, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF ST. LOUIS, LLC

CBIZ ACCOUNTING, TAX & ADVISORY OF UTAH, LLC

CBIZ ACCOUNTING, TAX & ADVISORY, LLC

CBIZ BEATTY SATCHELL, LLC

CBIZ BENEFITS & INSURANCE SERVICES, INC.

CBIZ BVKT, LLC

Signature Page to

Third Amendment to

Credit Agreement

 

 

CBIZ GIBRALTAR REAL ESTATE SERVICES, LLC

CBIZ RISK & ADVISORY SERVICES, LLC 

(FORMERLY CBIZ
HARBORVIEW, LLC)

CBIZ INSURANCE SERVICES, INC.

CBIZ KA CONSULTING SERVICES, LLC

CBIZ KESSLER GOVERNMENT RELATIONS, LLC

CBIZ M & S CONSULTING SERVICES, LLC

CBIZ M.T. DONAHOE & ASSOCIATES, LLC

CBIZ MEDICAL MANAGEMENT PROFESSIONALS, INC.

CBIZ MMP OF TEXAS, LLC

CBIZ NETWORK SOLUTIONS, LLC

CBIZ NETWORK SOLUTIONS CANADA, INC.

CBIZ OPERATIONS, INC.

CBIZ ACCOUNTING, TAX & ADVISORY OF NAPERVILLE, LLC (FORMERLY CBIZ PHILIP-RAE, LLC)

CBIZ RETIREMENT CONSULTING, INC.

CBIZ SK&B, LLC

CBIZ SOUTHERN CALIFORNIA, LLC

CBIZ SPECIAL RISK INSURANCE SERVICES, INC.

CBIZ TAX AND ADVISORY OF NEBRASKA INC.

CBIZ TECHNOLOGIES, LLC

CBIZ VALUATION GROUP, LLC

CBIZ VINE STREET HOLDING CORP.

CBIZ WEST, INC.

CBIZ WESTERN KANSAS, INC.

G&C BUSINESS SERVICES, INC.

GOVERNMENT EMPLOYEE BENEFITS CORPORATION OF GEORGIA

CBIZ FLEX, INC. (FORMERLY MHM RESOURCES, INC.)

HAWTHORN FINANCIAL CORPORATION

MHM RETIREMENT PLAN SOLUTIONS, LLC

MEDICAL MANAGEMENT SYSTEMS, INC.

ONECBIZ, INC.

TRIMED INDIANA, LLC

	 	 	 	 	 
	 	 	 
	 	By:  	                  /s/ Jerome P. Grisko, Jr.
 	 
	 	Name:  	 	Jerome P. Grisko, Jr. 	 
	 	Title:  	 	Sole Director 	 
	 

Signature Page to

Third Amendment to

Credit Agreement

 

 

	 	 	 	 	 
	BANK OF AMERICA, N.A., as Agent	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A., as a Lender	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	FIFTH THIRD BANK, as a Lender	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION, as a Lender
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	HUNTINGTON NATIONAL BANK, as a Lender
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	KEYBANK NATIONAL ASSOCIATION, as a Lender
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Signature Page to

Third Amendment to

Credit AgreementEX-10.1

 

Exhibit 10.1

SUPPLY AND DISTRIBUTION AGREEMENT

     THIS AGREEMENT, entered into the 15th day of November, 2007, by and between Neoprobe
Corporation, a Delaware corporation having a place of business at 425 Metro Place North, Suite 300,
Dublin, Ohio 43017 (“Supplier”), and Cardinal Health 414, LLC, a Delaware limited liability
company, having a place of business at 7000 Cardinal Place, Dublin, Ohio 43017 (“Cardinal Health”).

     WHEREAS, Supplier intends to manufacture and sell various radiopharmaceutical products,
including a product identified as Lymphoseek®, as hereinafter described in greater
detail (the “Product”); and

     WHEREAS, Cardinal Health desires to purchase from Supplier on an exclusive basis, and Supplier
desires to manufacture and sell to Cardinal Health on an exclusive basis within the Territory, the
Product on the terms and conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this
Agreement, the parties mutually agree as follows:

1. DEFINITION OF TERMS

	 	1.1	 	“Affiliate(s)” means any corporation, firm, partnership or other entity that
controls, is controlled by or is under common control with a party. For purposes of
this definition, “control” shall mean the ownership of at least fifty percent (50%) of
the voting share capital of such entity or any other comparable equity or ownership
interest.
	 
	 	1.2	 	“Applicable Laws” means all laws, ordinances, rules and regulations applicable
to the Product or any aspect thereof and to the obligations of Cardinal Health or
Supplier, as the context requires, under this Agreement, including, without limitation,
(a) all applicable federal, state and local laws and regulations, (b) the U.S. Food,
Drug and Cosmetic Act (21 U.S.C. §201, et seq.), and (c) the current Good Manufacturing
Practices promulgated by the FDA, each as amended from time to time.
	 
	 	1.3	 	“Contract Year” means four calendar quarters beginning with the first calendar
quarter following the Effective Date, and each twelve (12) month period beginning with
the corresponding month in subsequent calendar years. Contract Year 1 shall also
include the also include those days prior to the first calendar quarter following the
Effective Date.
	 
	 	1.4	 	“Effective Date” means the date of approval by the FDA of a New Drug
Application for the Product.
	 
	 	1.5	 	“FDA” means the U.S. Food and Drug Administration.

 

 

* Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

	 	1.6	 	“Procedure” means a single diagnostic procedure (specifically, a single surgical
or preoperative imaging application of Sentinel Lymph Node Biopsy) for which the
Product is dispensed by Cardinal Health for administration to a single patient.
	 
	 	1.7	 	“Product” shall mean Lymphoseek, as more specifically described in Schedule
1.7, which is incorporated into this Agreement.
	 
	 	1.8	 	“Provisional Transfer Cost” means (a) through the end of the first Contract
Year, [*] per Vial delivered to Cardinal Health, and (b) beginning with the second
Contract Year and continuing thereafter during the Term, the dollar amount per Vial
that is equal to the greater of (i) [*] percent ([*]%) of the average retail sales
price of the Product per Procedure by Cardinal Health during the prior Contract Year,
or (ii) [*] Dollars ([*]) per Vial delivered to Cardinal Health.
	 
	 	1.9	 	“Revenue” means the sales revenue received by Cardinal Health, net of any
rebates, returns, credits and allowances, resulting directly from the sale of the
Product.
	 
	 	1.10	 	“Revenue Share Amount” means the dollar amount due to Supplier that is equal to
Revenue multiplied by the applicable percentage set forth on Schedule 1.10, but
only to the extent such amount exceeds the Provisional Transfer Cost paid to Supplier
by Cardinal Health.
	 
	 	1.11	 	“Specifications” shall mean the manufacturing, labeling and packaging
specifications defined in an FDA New Drug Application for the Product.
	 
	 	1.12	 	“Term” means the duration of this Agreement as set forth in Section 2 below.
	 
	 	1.13	 	“Territory” means the fifty states of the United States of America.
	 
	 	1.14	 	“Vial” shall mean one vial of the Product, as further identified in Schedule 1.7.

2. TERM OF AGREEMENT

	 	2.1	 	Unless earlier terminated pursuant to the terms herein, this Agreement shall
commence upon the date set forth in the first paragraph hereof and shall continue in
effect for a period of sixty (60) months from the Effective Date.

	 	2.2	 	The Term of this Agreement will automatically renew for an additional Contract
Year (and shall continue to renew annually thereafter), unless either party gives
notice of non-renewal to the other party at least six (6) months before the expiration
of the then-current Term.

3. EXCLUSIVE SALE AND PURCHASE OF THE PRODUCTS

	 	3.1	 	Following the Effective Date, Supplier agrees to manufacture and sell the
Product exclusively to Cardinal Health in the Territory, and Cardinal Health agrees to
purchase the Product exclusively from Supplier in the Territory in accordance with

-2-

 

* Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

	 	 	 	the provisions of this Agreement. Cardinal Health shall be entitled to compound and
distribute unit doses (i.e., prescriptions for a single Procedure) to customers
located within the Territory for use within the Territory, and to distribute the
Product in bulk form to end-users or subdistributors located within the Territory
for use within the Territory, including, but not limited to, hospitals, clinics and
mobile imaging services; provided however that (i) no such subdistributor may
appoint any other subdistributor, (ii) Cardinal Health assumes full responsibility
for compliance with all applicable restrictions and obligations by each
subdistributor, and (iii) all payments and reports due on account of subdistributor
activity will be made by and through Cardinal Health together with Cardinal Health’s
other payments and reports.
	 
	 	3.2	 	For purposes of calculating the Revenue Share Amounts below, sales of Product
in bulk form (i.e., not compounded) shall be presumed to be on the basis of [*] per
Vial. The volume, price and ratio per vial of sales in bulk form will be reviewed
periodically by the Steering Committee and may be adjusted as deemed appropriate by the
Steering Committee.

4. REVENUE SHARE AMOUNT

	 	4.1	 	Within thirty (30) days following the end of each month during the Term,
Cardinal Health shall provide to Supplier data on the sales of the Product sufficiently
detailed to allow Supplier to calculate the number of Procedures performed and the
applicable Revenue Share Amount.
	 
	 	4.2	 	Within forty-five (45) days following the end of each calendar quarter of the
Term, Cardinal Health will pay to Supplier the Revenue Share Amount by annualizing the
number of Procedures sold during the applicable quarter (the “Quarterly Revenue Share
Amount”) and will provide to Supplier a report setting forth in reasonable detail the
basis for the calculation of the Quarterly Revenue Share Amount.
	 
	 	4.3	 	For each Contract Year, Cardinal Health shall calculate the annual Revenue
Share Amount due to Supplier (the “Annual Revenue Share Amount”). If the Annual
Revenue Share Amount is less than the sum of the Quarterly Revenue Share Amounts paid
during the applicable Contract Year, Supplier shall refund the excess to Cardinal
Health within forty-five (45) days of notice of such excess. If the Annual Revenue
Share Amount is greater than the sum of the Quarterly Revenue Share Amounts for the
applicable Contract Year, Cardinal Health shall remit the balance due to Supplier
within forty-five (45) days following the last day of the applicable Contract Year.
	 
	 	4.4	 	In the event the Provisional Transfer Cost of Vials used related to Procedures
sold during a given quarter exceeds the amount calculated pursuant to Schedule
1.10, Cardinal Health shall be entitled to a credit against the Revenue Share
Amount due to Supplier in the next applicable period or periods in the amount of such
excess. However, for purposes of calculating the Revenue Share Amount for the
applicable

-3-

 

* Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

	 	 	 	period, in no case can the number of Vials used for any given calendar quarter
included in the calculation exceed the number of Procedures sold in the calculation.

5. PROVISIONAL TRANSFER COST; SHIPMENT TERMS; MILESTONE PAYMENTS

	 	5.1	 	The price to be paid for Vials of the Products purchased by Cardinal Health
under this Agreement shall be the Provisional Transfer Cost.
	 
	 	5.2	 	All prices are F.O.B. Cardinal Health’s national radiopharmaceutical
distribution center.
	 
	 	5.3	 	Prices do not include any sales, use, excise or other similar taxes or duties.
Cardinal Health shall pay all such taxes and duties and any personal property taxes or
other similar charges assessed on the Product after delivery to the carrier.
	 
	 	5.4	 	Unless otherwise agreed by the parties in writing, Cardinal Health shall make
payment separately for each purchase order filled by Supplier. Cardinal Health shall
pay all invoice amounts within thirty (30) days of the date of Cardinal Health’s
shipment of the Product from Cardinal Health’s national distribution center to another
point of destination (i.e., Cardinal Health nuclear pharmacy or independent pharmacy).
	 
	 	5.5	 	Title to and risk of loss or damage to the Product shall pass to Cardinal
Health on placement of Product in the hands of a carrier for shipment from Cardinal
Health’s national distribution center to another point of destination.
	 
	 	5.6	 	In addition to the Revenue Share Amount and Provisional Transfer Cost, Cardinal
Health shall pay to Supplier the following payments (the “Milestone Payments”):

     (a) Upon Cardinal’s sale of [*] cumulative Procedures, [*];

     (b) Upon Cardinal’s sale of [*] cumulative Procedures, [*];

     (c) Upon Cardinal’s sale of [*] cumulative Procedures, [*]; and

     (d) Upon Cardinal’s sale of [*] cumulative Procedures, [*].

	 	5.7	 	Cardinal Health shall pay the applicable Milestone Payment within forty-five
(45) days of the end of the quarter in which Cardinal Health achieves the applicable
milestone Procedures amount as set forth in Section 5.5.

6. ORDERING PROCEDURES; NO MINIMUM PURCHASE REQUIREMENT; MINIMUM SALES REQUIREMENT

-4-

 

* Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

	 	6.1	 	Cardinal Health shall submit its orders for the Product through Supplier’s Customer
Service representative. Cardinal Health may also submit orders by facsimile to
(614) 793-7522. Each order submitted by facsimile or in other written form must
specify (a) the number of Vials of the Product to be purchased and (b) the desired
delivery dates. Except for the information specified in the preceding clauses (a)
and (b), the terms of the Cardinal Health’s purchase orders or any other documents
submitted by Cardinal Health shall be of no force and effect, and the terms of such
purchase and sale shall be governed solely by this Agreement.
	 
	 	6.2	 	Cardinal Health will provide Supplier with real-time electronic access to
inventory quantity and shipment information regarding Product distributed from its
national radiopharmaceutical distribution center referenced in 5.2.
	 
	 	6.3	 	Supplier will use reasonable commercial efforts to manufacture and supply the
Product in the amounts and at the times specified by Cardinal Health.
	 
	 	6.4	 	Cardinal Health has no obligation to purchase from Supplier any minimum dollar
volume of the Product, however, commencing with the second Contract Year and, for each
Contract Year thereafter, Cardinal Health shall be required to sell not less than the
greater of (i) [*] percent ([*]%) of the number of Procedures sold during the prior
Contract Year or (ii) [*] Procedures (the “Minimum Sales Requirement”). In the event
Cardinal Health does not meet the Minimum Sales Requirement for any Contract Year,
within thirty (30) days following the expiration of such Contract Year, Cardinal must
either (a) pay to Supplier the additional Revenue Share Amount (based on the average
sales price and Procedure/Vial ratio that existed for the first three quarters of the
Contract Year) that Supplier would have earned if Cardinal Health had met the Minimum
Sales Requirement or (b) terminate Supplier’s exclusivity obligation under this
Agreement.

7. STEERING COMMITTEE; RETAIL PRICE

	 	7.1	 	Cardinal Health and Supplier agree to establish a Steering Committee comprised
of an equal number of representatives from each party. The Steering Committee will
meet periodically, but no less frequently than semi-annually. The Steering Committee
shall be responsible for reviewing performance and economics of the distribution of the
Product including, without limitation, consideration of reimbursement rate, actual
product labeling, average selling price, number of Procedures per Vial, market
penetration and Supplier production forecasts.
	 
	 	7.2	 	The Steering Committee will discuss and suggest the retail sales price for the Product;
provided however, that Cardinal Health has sole discretion to establish the retail sales price
and that the Provisional Transfer Price per vial may not be decreased below $[*] per
Vial

-5-

 

8. AUDIT RIGHTS

	 	8.1	 	Each party (each such party, an “Obligated Party”) agrees to permit the other
party (each such party, an “Auditing Party”) to appoint an independent certified
accountant, acceptable and approved by the Obligated Party, to examine during
reasonable business hours, upon ten (10) business days prior written notice and not
more frequently than once each rolling twelve (12) calendar months, the books and
records of the Obligated Party only to the extent necessary to verify compliance with
this Agreement. The Auditing Party shall make such examination at its sole cost and
expense; provided however, that in the event such audit reveals a material breach of
the Obligated Party’s obligations under this Agreement, such Obligated Party shall bear
the reasonable costs and expenses of the audit.
	 
	 	8.2	 	Unless otherwise agreed to by the Parties, if as a result of the audit
performed pursuant to Section 8.1, the independent certified accountant determines that
Cardinal Health has under-reported any information necessary to calculate Revenue Share
Amount for the Product and as a result Supplier has received less than it should have
under the Agreement, Cardinal Health shall, no later than forty-five (45) business days
after receiving notice of such underpayment, remit to Neoprobe the amount of the
underpayment. If as a result of the audit performed pursuant to Section 8.1, the
independent certified accountant determines that Cardinal Health has over-reported any
information used to calculate the Revenue Share Amount for the Product and as a result
Supplier has received more than it should have under the Agreement, Cardinal Health
shall be entitled to a credit against the Revenue Share Amount due to Supplier in the
next applicable period in the amount of such excess.
	 
	 	8.3	 	The Auditing Party shall treat the information provided by the Obligated Party
as confidential information except that the Auditing Party may disclose such
information to its auditors, accountants and attorneys to the extent reasonably
necessary to conduct such audit.

9. DUTIES OF CARDINAL HEALTH

	 	9.1	 	In addition to all other obligations set forth in this Agreement, Cardinal
Health shall:

	 	(a)	 	use diligent efforts to market the Product, including creating
promotional, educational, marketing and sales materials and a marketing plan
acceptable to the Supplier; provided that Supplier may at its expense undertake
certain promotional and/or marketing activities; and
	 
	 	(b)	 	secure any governmental or regulatory approvals, at its own
expense, necessary for its purchase, use or resale of the Product and provide
proof of regulatory notification or approval as requested by Supplier; and
	 
	 	(c)	 	comply at all times with all Applicable Laws governing the
performance of its obligations hereunder.

-6-

 

10. DUTIES OF SUPPLIER

	 	10.1	 	In addition to all other obligations set forth in this Agreement, Supplier
shall:

	 	(a)	 	manufacture, label and package the Product in accordance with
the Specifications;
	 
	 	(b)	 	notify Cardinal Health promptly in writing should Supplier
become aware of any defect or condition which may render the Product in
violation of any Applicable Laws; and
	 
	 	(c)	 	comply at all times with all Applicable Laws governing the
manufacture, labeling, packaging or sale of the Product or the performance of
Supplier’s obligations hereunder.

11. REPRESENTATIONS AND WARRANTIES

	 	11.1	 	Such party (a) is duly organized, validly existing and in good standing under
the laws of the state in which it is organized, (b) has the power and authority and the
legal right to own and operate its property and assets, and to carry on its business as
it is now being conducted, and (c) is in compliance with all requirements of Applicable
Laws, except to the extent that any noncompliance would not materially adversely affect
such party’s ability to perform its obligations under the Agreement;
	 
	 	11.2	 	Such party (a) has the power and authority and the legal right to enter into
this Agreement and to perform its obligations hereunder and (b) has taken all necessary
action on its part to authorize the execution and delivery of this Agreement and the
performance of its obligations hereunder.
	 
	 	11.3	 	This Agreement has been duly executed and delivered on behalf of such party,
and constitutes a legal, valid, binding obligation, enforceable against such party in
accordance with its terms;
	 
	 	11.4	 	All necessary consents, approvals and authorizations of all regulatory
authorities and other persons required to be obtained by such party in connection with
the Agreement have been obtained; and
	 
	 	11.5	 	The execution and delivery of this Agreement and the performance of such
party’s obligations hereunder (a) do not conflict with or violate any requirement of
Applicable Laws, and (b) do not materially conflict with, or constitute a material
default or require any consent under, any contractual obligation of such party.

12. PRODUCT WARRANTIES

12.1 Supplier warrants that the Product shall:

	 	(a)	 	conform to the Specifications;

-7-

 

	 	(b)	 	be free from defects in material and workmanship; and
	 
	 	(c)	 	not be adulterated or misbranded within the meaning of the U.S.
Food, Drug and Cosmetic Act, as amended (21 U.S.C. §201, et seq.), and the
regulations promulgated from time to time thereunder.

THE WARRANTIES IN SECTION 9.1 ARE THE SOLE AND EXCLUSIVE WARRANTIES AS TO SUPPLIER’S
PRODUCTS, AND ARE EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES, ORAL OR IMPLIED, INCLUDING
WITHOUT LIMITATION ANY ORAL OR IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR PARTICULAR
PURPOSE OR NONINFRINGEMENT AND SUPPLIER DOES NOT MAKE ANY WARRANTY TO CARDINAL HEALTH’S
CUSTOMERS OR AGENTS. EXCEPT TO THE EXTENT THAT INDEMNIFICATION IS AVAILABLE UNDER SECTION
13.2 BELOW, CARDINAL HEALTH’S SOLE AND EXCLUSIVE REMEDY FOR ANY BREACH OF THE FOREGOING
WARRANTIES SHALL BE REPLACEMENT OF OR (AT SUPPLIER’S OPTION OR IF REPLACEMENT IS
IMPRACTICAL) REFUND FOR RETURNED NON-CONFORMING VIALS OF PRODUCT FOR WHICH FULL
DOCUMENTATION AND PROOF OF NON-CONFORMITY IS PROVIDED TO SUPPLIER WITHIN 60 DAYS AFTER THE
ORIGINAL NON-CONFORMING VIALS ARE SHIPPED BY SUPPLIER.

13. INDEMNIFICATION; LIMITATIONS OF LIABILITY

	 	13.1	 	Cardinal Health shall indemnify and hold harmless Supplier, its Affiliates, and
their respective directors, officers, employees and agents (“Supplier Indemnitees”)
from and against any and Losses (as defined in section 13.4) arising out of or
resulting from (a) any breach of its representations, warranties or obligations set
forth in this Agreement, (b) any negligence or willful misconduct by Cardinal Health,
or (c) any dispensing by Cardinal of the Product, except to the extent that any of the
foregoing arises out of or results from any Supplier Indemnitee’s negligence, willful
misconduct or breach of this Agreement.
	 
	 	13.2	 	Supplier shall indemnify and hold harmless Cardinal Health, its Affiliates, and
their respective directors, officers, employees and agents (“Cardinal Health
Indemnitees”) from and against all Losses (as defined in section 13.4) arising out of
or resulting from (a) any breach of its representations, warranties or obligations set
forth in this Agreement, (b) any manufacture, sale, promotion, distribution of the
Product by Supplier, or any person’s use of or exposure to the Product, (c) any actual
or alleged infringement or violation of any U.S. patent, trade secret, copyright,
trademark or other proprietary rights related to the Product, or (d) any negligence or
willful misconduct by Supplier, except to the extent that any of the foregoing arises
out of or results from any Cardinal Health Indemnitee’s negligence, willful misconduct
or breach of this Agreement.

-8-

 

* Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

	 	13.3	 	All indemnification obligations in this Agreement are conditioned upon the
party seeking indemnification: (a) promptly notifying the indemnifying party of any
claim or liability of which the party seeking indemnification becomes aware
(including a copy of any related complaint, summons, notice or other instrument);
provided, however, that failure to provide such notice within a reasonable period of
time shall not relieve the indemnifying party of any of its obligations hereunder
except to the extent the indemnifying party is prejudiced by such failure, (b)
cooperating with the indemnifying party in the defense of any such claim or
liability (at the indemnifying party’s expense), and (c) not compromising or
settling any claim or liability without prior written consent of the indemnifying
party.
	 
	 	13.4	 	For purposes of this Section 13, “Losses” shall mean all suits, claims, losses,
demands, liabilities, damages, costs and expenses (including reasonable attorneys’
fees) in connection with any suit, demand or action by any third party.
	 
	 	13.5	 	IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL,
INCIDENTAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES OF ANY NATURE,
INCLUDING LOST OR ANTICIPATED PROFITS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY THEREOF, REGARDLESS OF WHETHER THE LIABILITY ARISES OUT OF BREACH OF
CONTRACT, BREACH OF WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR ANY
OTHER THEORY. THE LIMITATIONS IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE ANY
LIABILITY FOR LOSSES PURSUANT TO SECTION 13.1 OR 13.2 HEREOF.

14. INSURANCE

	 	14.1	 	Supplier shall, at its own cost and expense, obtain and maintain in full force
and effect the following insurance during the Term: (a) Commercial General Liability
insurance with per-occurrence and general aggregate limits of not less than $[*], and
(b) Product and Completed Operations Liability Insurance with per-occurrence and
general aggregate limits of not less than $[*]. In the event that any of the required
policies of insurance are written on a claims made basis, then such policies shall be
maintained during the entire Term and for a period of not less than three (3) years
following the termination or expiration of this Agreement. Cardinal Health and its
Affiliates shall be named as additional insureds under the Product and Completed
Operations Liability insurance policies as respects the Product. Supplier shall
furnish certificates of insurance upon request for all of the above noted policies and
required additional insured status. Each insurance policy that is required under this
Section shall be obtained from an insurance carrier with an A.M. Best rating of at
least A- VII.

-9-

 

15. CONFIDENTIALITY

	 	15.1	 	Cardinal Health and Supplier agree that they will not disclose the other
party’s Confidential Information (as defined in Section 15.2) to any third party
without the prior written consent of the other party except as required by law,
regulation or court or administrative order; provided, however, that prior to making
any such legally required disclosure, the party making such disclosure shall give the
other party as much prior notice of the requirement for and contents of such disclosure
as is practicable under the circumstances. Notwithstanding the foregoing, each party
may disclose the other party’s Confidential Information to any of its Affiliates
provided that such Affiliates agree to be bound by the terms of this Section.
	 
	 	15.2	 	As used in this Agreement, the term “Confidential Information” includes all
such information furnished by Cardinal Health or Supplier, or any of their respective
representatives or Affiliates, to the other or its representatives or Affiliates,
whether furnished before, on or after the date of this Agreement and furnished in any
form, including but not limited to written, verbal, visual, electronic or in any other
media or manner. Confidential Information includes all proprietary technologies,
know-how, trade secrets, discoveries, inventions and any other Intellectual Property
(whether or not patented), analyses, compilations, business or technical information
and other materials prepared by either party, or any of their respective
representatives, containing or based in whole or in part on any such information
furnished by the other party or its representatives. Confidential Information also
includes the terms of this Agreement.
	 
	 	15.3	 	Notwithstanding Section 15.2, Confidential Information does not include
information that (a) is or becomes generally available to the public or within the
industry to which such information relates other than as a result of a breach of this
Agreement, (b) is already known by the receiving party at the time of disclosure as
evidenced by the receiving party’s written records, (c) becomes available to the
receiving party on a non-confidential basis from a source that is entitled to disclose
it on a non-confidential basis, or (d) was or is independently developed by or for the
receiving party without reference to the Confidential Information, as evidenced by the
receiving party’s written records.

16. USE OF TRADEMARKS

	 	16.1	 	Subject to the terms and conditions of this Agreement, Supplier hereby grants
to Cardinal Health the non-exclusive right to use Supplier’s trademarks, trade names
and logos (the “Supplier Marks”) as listed in Schedule 16.1 solely in connection with
its distribution, promotion and marketing of the Product hereunder. Cardinal Health
recognizes Supplier’s exclusive ownership of the Supplier Marks and agrees to comply
with any reasonable usage requirements and/or quality control guidelines with respect
to the Supplier Marks as Supplier may reasonably prescribe in writing from time to
time. All goodwill resulting from the use of the Supplier Marks by Cardinal Health
shall belong to and inure solely to the benefit of Supplier. Cardinal

-10-

 

	 	 	 	Health shall not undertake any act that would impair the Supplier Marks or the
goodwill associated therewith. In particular, Cardinal Health shall not use the
Supplier Marks except as authorized in this Agreement. Cardinal Health shall
promptly notify Supplier in writing of any actual or suspected infringement of the
Supplier Marks by a third party of which Cardinal Health becomes aware.

	 	16.2	 	Cardinal Health will produce all sales and marketing materials used in
connection with the sale and marketing of the Product. Cardinal Health will provide
marketing collateral to its sales personnel in the Territory. Supplier must approve
Product claims and labeling.

17. REGULATORY MATTERS

	 	17.1	 	Each party will notify the other promptly in writing, but in all cases within
five business days, of learning of any event that either materially affects, or could
reasonably be expected to materially affect, the marketing of the Product, including
without limitation any complaint regarding the Product, report of adverse event with
respect to the Product, and any inquiry or other communication, whether oral or
written, received from any person, including any governmental or regulatory authority.

	 	17.2	 	In the event that either party obtains information that a Product may not meet
the approved specifications or labeling for such Product, or is otherwise defective,
misbranded or adulterated, such party shall notify the other party immediately and both
parties shall cooperate fully regarding the investigation and disposition of such
matter. Cardinal Health and Supplier shall each maintain such traceability records as
are sufficient and as may be necessary to permit a recall, product withdrawal or field
correction of the Product. In the event any applicable governmental or regulatory
authority should issue a request, directive or order that a Product be recalled or
withdrawn, Cardinal Health agrees to cooperate fully with Supplier in the recall and
take all corrective action necessary to resolve the situation. The Supplier shall
bear the costs incurred in affecting a recall, except to the extent such recall is
directly attributable to the actions or omissions of Cardinal Health or a breach of its
obligations hereunder, in which case Cardinal Health shall be responsible for all
expenses reasonably incurred by Supplier in effecting the recall.

18. TERMINATION

	 	18.1	 	Either party may terminate this Agreement as follows:

	 	(a)	 	if the other party commits a material breach of any of the
provisions of this Agreement and does not cure such breach within thirty (30)
days after the non-breaching party gives written notice thereof; or
	 
	 	(b)	 	immediately in the event that proceedings in bankruptcy or
insolvency are instituted by or against the other party, or a receiver is
appointed, or if any

-11-

 

	 	 	 	substantial part of the assets of the other party is the object of
attachment, sequestration or other type of comparable proceeding, and such
proceeding is not vacated or terminated within thirty (30) days after its
commencement or institution.

	 	18.2	 	Following the expiration or termination of this Agreement, all further rights
and obligations of the parties shall cease, except that the parties shall not be
relieved of (a) their respective obligations to pay monies due or which become due on
or subsequent to the date of expiration or termination, and (b) any other respective
obligations under this Agreement which specifically survive after the date of
expiration or termination.

19. MISCELLANEOUS

	 	19.1	 	All notices and other communications hereunder shall be in writing and shall be
deemed given: (a) when delivered personally, (b) when delivered by facsimile
transmission (receipt confirmed), (c) when received or refused, if mailed by registered
or certified mail (return receipt requested), postage prepaid; or (d) when delivered if
sent by express courier service, to the parties at the following addresses (or at such
other address for a party as shall be specified by like notice; provided, that notices
of a change of address shall be effective only upon receipt thereof):

	 	 	 
	To Supplier:

	 	Neoprobe Corporation
	 

	 	425 Metro Place North, Suite 300
	 

	 	Dublin, Ohio 43017
	 

	 	Attn: President
	 

	 	Facsimile: (614) 793 - 7522
	 
	 	 
	With a copy to:

	 	Porter, Wright, Morris & Arthur, LLP
	 

	 	41 South High Street, Suite 2800
	 

	 	Columbus, Ohio 43215
	 

	 	Attn: William J. Kelly, Jr.
	 

	 	Facsimile: (614) 227-2100
	 
	 	 
	To Cardinal Health:

	 	Cardinal Health 414, LLC
	 

	 	7000 Cardinal Place
	 

	 	Dublin, Ohio 43017
	 

	 	Attn: President-NPS
	 

	 	Facsimile: (614)-757-8311

-12-

 

	 	 	 
	With a copy to:

	 	Cardinal Health, Inc.
	 

	 	7000 Cardinal Place
	 

	 	Dublin, Ohio 43017
	 

	 	Attn: VP, General Counsel—N.P.S.
	 

	 	Facsimile: (614) 757-3142

	 	19.2	 	This Agreement, the attachments and any amendments thereto constitute the
entire understanding between the parties and supersede any contracts, agreements or
understanding (oral or written) of the parties with respect to the subject matter
hereof. No term of this Agreement may be amended except upon written agreement of both
parties, unless otherwise provided in this Agreement.
	 
	 	19.3	 	The captions in this Agreement are for convenience only and are not to be
interpreted or construed as a substantive part of this Agreement
	 
	 	19.4	 	The parties agree to execute, acknowledge and deliver such further instruments
and to take all such other incidental acts as may be reasonably necessary or
appropriate to carry out the purpose and intent of this Agreement.
	 
	 	19.5	 	Failure by either party to insist upon strict compliance with any term of this
Agreement in any one or more instances will not be deemed to be a waiver of its rights
to insist upon such strict compliance with respect to any subsequent failure.
	 
	 	19.6	 	If any term of this Agreement is declared invalid or unenforceable by a court
or other body of competent jurisdiction, the remaining terms of this Agreement will
continue in full force and effect.
	 
	 	19.7	 	The relationship of the parties is that of independent contractors, and neither
party will incur any debts or make any commitments for the other party except to the
extent expressly provided in this Agreement. Nothing in this Agreement is intended to
create or will be construed as creating between the parties the relationship of joint
ventures, co-partners, employer/employee or principal and agent.
	 
	 	19.8	 	This Agreement will be binding upon and inure to the benefit of the parties,
their successors and permitted assigns. Neither party may assign this Agreement, in
whole or in part, without the prior written consent of the other party, except that
either party may, without the other party’s consent, assign this Agreement to an
Affiliate (in which case the assigning party shall remain jointly and severally liable
and responsible with any such Affiliate for the performance of this Agreement) or to a
successor to substantially all of the business or assets of the assigning company.
	 
	 	19.9	 	This Agreement shall be governed by and construed under the laws of the State
of Ohio, excluding its conflicts of law provisions.
	 
	 	19.10	 	In any action or proceeding between the parties in connection with this
Agreement, the court shall have the authority to award and apportion costs, including
reasonable

-13-

 

	 	 	 	attorneys’ fees and other costs incurred by the parties, taking into account the
circumstances of the case, the conduct of the parties during the proceeding, and the
result.
	 
	 	19.11	 	Any action or proceeding arising out of or relating to this Agreement may be
brought in the state or federal courts located in Franklin County, Ohio, and each of
the parties irrevocably submits to the exclusive jurisdiction of each such court in any
such action or proceeding, waives any objection it may now or hereafter have to venue
or to convenience of forum, agrees that all claims in respect of the action or
proceeding shall be heard and determined only in any such court and agrees not to bring
any action or proceeding arising out of or relating to this Agreement in any other
court. The parties agree that either or both of them may file a copy of this Section
19.11 with any court as written evidence of the knowing, voluntary and bargained
agreement between the parties irrevocably to waive any objections to venue or to
convenience of forum. Process in any action or proceeding referred to in the first
sentence of this Section may be served on any party in any manner set forth in Section
19.1, provided that the foregoing shall not affect the right of a party to serve
process in any other manner permitted by law.
	 
	 	19.12	 	This Agreement may be executed in one or more counterparts, each of which will
be deemed an original but all of which together will constitute one and the same
instrument. Any photocopy, facsimile or electronic reproduction of the executed
Agreement shall constitute an original.
	 
	 	19.13	 	Neither party will make any press release or other public disclosure regarding
this Agreement or the transactions contemplated hereby without the other party’s
express prior written consent, except as required under applicable law or by any
governmental agency, in which case the party required to make the press release or
public disclosure shall use commercially reasonable efforts to obtain the approval of
the other party as to the form, nature and extent of the press release or public
disclosure prior to issuing the press release or making the public disclosure.
Specifically, if either party determines that this Agreement must be disclosed in a
filing with the Securities and Exchange Commission, that party shall use its best
efforts to obtain confidential treatment of the pricing and revenue share amounts set
forth in this Agreement and will consult with the other party, at least two business
days prior to filing, regarding the information to be disclosed.
	 
	 	19.14	 	The rights and obligations of the parties shall continue under Section 13
(Indemnification: Limitations of Liability), 14 (Insurance), to the extent expressly
stated therein, 15 (Confidentiality), 17 (Regulatory Matters), 18 (Termination), and 19
(Miscellaneous) notwithstanding expiration or termination of this Agreement.
	 
	 	19.15	 	Except as to payments required under this Agreement, neither party shall be
liable in damages for, nor shall this Agreement be terminable or cancelable by reason
of, any delay or default in such party’s performance hereunder if such default or delay
is caused by events beyond such party’s reasonable control including, but not limited

-14-

 

	 	 	 	to, acts of God, regulation or law or other action or failure to act of any
government or agency thereof, war or insurrection, civil commotion, destruction of
production facilities or materials by earthquake, fire, flood or storm, labor
disturbances, epidemic, or failure of suppliers, public utilities or common
carriers; provided however, that the party seeking relief hereunder shall
immediately notify the other party of such cause(s) beyond such party’s reasonable
control. The party that may invoke this section shall use all reasonable endeavors
to reinstate its ongoing obligations to the other. If the cause(s) shall continue
unabated for one hundred eighty (180) days, then both parties shall meet to discuss
and negotiate in good faith what modifications to this Agreement should result from
this force majeure.
	 
	 	19.16	 	The terms and conditions of this Agreement are intended solely for the benefit
of each party to this Agreement and their respective successors or permitted assigns,
and it is not the intention of the parties to confer third party beneficiary rights,
and this Agreement does not confer such rights, upon any other person or entity.

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

	 	 	 	 	 	 	 
	 	 	NEOPROBE CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ David C. Bupp
	 	 	 	 	 
	 

	 	 	 	Name:
	 	David C. Bupp
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	President & CEO
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CARDINAL HEALTH 414, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Gordon Troup
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Gordon Troup
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	President
	 

	 	 	 	 	 	 

-15-

 

Schedule 1.7

Lymphoseek Description

1.0    Product Name

Lymphoseek®

2.0    Chemical Name and Structure

Technetium-99m-diethylenetriamine pentaacetic acid-mannosyl-dextran (TcDTPA-mannosyl-dextran)

Chemical Structure:

3.0    Proposed Indications

Lymphoseek is indicated for use in preoperative and/or intraoperative localization of sentinel
lymph node(s) draining the primary site of a tumor in patients with melanoma or breast cancers.

4.0    Dosage Form and Dosing Regimen

Patients will receive a single dose of 50 μg Lymphoseek radiolabeled with 0.5 or 1.0 mCi
99mTc. The amount of 99m Tc used will be related to the time between
injection of Lymphoseek and surgery. 0.5 mCi 99m TC should be used for patients
scheduled for surgery the same day as the injection of Lymphoseek. For those patients that are
scheduled for surgery the following day after injection with Lymphoseek should have the radiotracer
labeled with 1.0 mCi 99m Tc.

-16-

 

* Portions have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

Schedule 1.10

Revenue Share Pricing Tier Table

Supplier’s Revenue Share will be based upon the number of Procedures sold by Cardinal Health during
the Contract Year and the average number of Procedures that Cardinal Health is able to dispense per
Vial during such Contract Year as follows:

																									
	Pricing Tier Table

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Number of Procedures	 	 	Procedures per Vial

	
(Annualized)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	Less	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Greater
	 	 	Than or
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	Than
	 	 	Equal To	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]
	 	 	[*]

      

Example (Quarterly Revenue Share Calculation in Contract Year 1):

Number of Procedures Dispensed = [*]

Number of Vials Used = [*]

Procedures per Vial = [*]

Provisional Transfer Cost of Vials [*]

CH Revenue = [*]

Number of Procedures (annualized) = [*]

Revenue Share Percentage = [*]

Revenue Share Calculation = [*].

-17-

 

Schedule 16.1

List of Supplier Registered Trademarks, Trademarks, Trade Names and Logos

Neoprobe®

Lymphoseek®

-18-

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