Document:

Exhibit 10.3

 

 

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made as of July 14, 2015, by and among OpGen, Inc., a Delaware corporation (the "Company"), and each of the investors listed on Schedule A hereto, each of which is referred to in this Agreement as an "Investor."

RECITALS

WHEREAS, the Company and one of the Investors, Merck Global Health Innovation, LLC, a Delaware limited liability company ("Merck") are parties to a certain Common Stock and Note Purchase Agreement of even date herewith pursuant to which the Investor will purchase from the Company certain shares of Common Stock of the Company and a senior secured promissory note of the Company;

WHEREAS, Merck and the other Investors have received shares of Common Stock of the Company in connection with the acquisition by the Company of AdvanDx; and

WHEREAS, the Company and the Investors have mutually agreed that, in connection with the Investors' ownership in the Company, the Investors would be granted certain registration rights with respect to the shares of Common Stock owned by the Investors.

NOW, THEREFORE, the parties to this Agreement further agree as follows:

Definitions.  For purposes of this Agreement:

1.1   "Affiliate" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.

1.2   "Common Stock" means shares of the Company's common stock, par value $0.01 per share.

1.3   "Damages" means any loss, damage, or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, or liability (or any action in respect thereof) arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

 

 

1.4   "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

1.5   "Excluded Registration" means (i) a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan or (ii) a registration relating to an SEC Rule 145 transaction.

1.6   "Form S-1" means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.

1.7   "Form S-3" means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits incorporation of substantial information by reference to other documents filed by the Company with the SEC.

1.8   "GAAP" means generally accepted accounting principles in the United States.

1.9   "Holder" means any holder of Registrable Securities who is a party to this Agreement.

1.10  "Immediate Family Member" means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a natural person referred to herein.

1.11"Initiating Holders" means, collectively, Holders who properly initiate a registration request under this Agreement.

1.12 "New Securities" means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

1.13  "Person" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

1.14  "Registrable Securities" means (i) the Common Stock held by an Investor; and (ii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in clause (i) above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Section 6.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Section 2.13 of this Agreement.

 

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1.15  "Registrable Securities then outstanding" means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.

1.16  "Restricted Securities" means the securities of the Company required to bear the legend set forth in Section 2.12(b) hereof.

1.17  "SEC" means the Securities and Exchange Commission.

1.18  "SEC Rule 144" means Rule 144 promulgated by the SEC under the Securities Act.

1.19  "SEC Rule 145" means Rule 145 promulgated by the SEC under the Securities Act.

1.20  "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

1.21  "Selling Expenses" means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne and paid by the Company as provided in Section 2.6.

Registration Rights.  The Company covenants and agrees as follows:

2.1      Demand Registrations.

(a)  If at any time after May 31, 2016, the Company receives a request from Holders of fifty percent (50%) of the Registrable Securities then outstanding that the Company file a Form S-3 (or, if Form S-3 is not available for use by the Company, then a Form S-1) registration statement with respect to all or at least fifty percent (50%) of the Registrable Securities (or such lesser amount as may be agreed to by the Company and the Holders), then the Company shall (i) within ten (10) days after the date such request is given, give notice thereof (the "Demand Notice") to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Section 2.1(c) and Section 2.3.

(b)  If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders of at least twenty percent (20%) of the Registrable Securities then outstanding that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $1 million (or such lesser amount as may be agreed to by the Company and the Holders), then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Section 2.1(c) and Section 2.3.

 

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(c)  Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Section 2.1 a certificate signed by the Company's chief executive officer stating that in the good faith judgment of the Company's Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing, for a period of not more than sixty (60) days after the request of the Initiating Holders is given; provided, however, that the Company may not invoke this right more than once in any twelve (12) month period; and provided further that the Company shall not register any securities for its own account or that of any other stockholder during such sixty (60) day period other than an Excluded Registration.

(d)  The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(a) (i) during the period that is ninety (90) days after the effective date of a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; (ii) after the Company has effected two (2) registrations pursuant to Section 2.1(a); or (iii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 2.1(b).  The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(b) (i) during the period that is ninety (90) days after the effective date of, a Company-initiated registration, provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or (ii) if the Company has effected two (2) registrations pursuant to Section 2.1(b) within the twelve (12) month period immediately preceding the date of such request.  A registration shall not be counted as "effected" for purposes of this Section 2.1(d) until such time as (i) all Registrable Securities requested to be registered are so registered and (ii) the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration (for any reason other than as a result of a material adverse change to the Company) and forfeit their right to one demand registration statement pursuant to Section 2.6, in which case such withdrawn registration statement shall be counted as "effected" for purposes of this Section 2.1(d).

 

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2.2  Company Registration.  If the Company proposes to register (including, for this purpose, a registration effected by the Company for stockholders other than the Holders) any of its securities under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder notice of such registration.  Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of Section 2.3, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration.  The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration.  The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Section 2.6.

2.3  Underwriting Requirements.

(a)  If, pursuant to Section 2.1(a), the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Section 2.1(a), and the Company shall include such information in the Demand Notice.  In this instance, the underwriter will be selected by the Holders, subject to the approval of the Company, which approval shall not be unreasonably withheld or delayed.  In such event, the right of any Holder to include such Holder's Registrable Securities in such registration shall be conditioned upon such Holder's participation in such underwriting and the inclusion of such Holder's Registrable Securities in the underwriting to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 2.4(e)) enter into an underwriting agreement in customary form with the underwriters selected for such underwriting.  Notwithstanding any other provision of this Section 2.3, if the Company and underwriters together advise the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder, or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting.

(b)  In connection with any offering involving an underwriting of shares of the Company's capital stock pursuant to Section 2.2, the Company shall not be required to include any of the Holders' Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company.  If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering.  If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders.  Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the offering be reduced below thirty percent (30%) of the total number of securities included in such offering, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder's securities are included in such offering.  For purposes of the provision in this Section 2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such "selling Holder," as defined in this sentence.

 

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2.4  Obligations of the Company.  Whenever required under this Section 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

(a)  prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however, that such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration;

(b)  prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

(c)  furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

(d)  use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

 

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(e)  in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

(f)  use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

(g)  provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

(h)  promptly make available for inspection by the selling Holders, any underwriters participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company's officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

(i)  notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

(j)  after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus.

2.5  Furnish Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder's Registrable Securities.

2.6  Expenses of Registration.  All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to Section 2, including all registration, filing, and qualification fees; printers' and accounting fees; and fees and disbursements of counsel for the Company, and one counsel for the Holders in an amount not to exceed $5,000; shall be borne and paid by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 2.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant to Section 2.1(a) or Section 2.1(b), as the case may be; provided further that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to Section 2.1(a) or Section 2.1(b).  All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

 

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2.7  Delay of Registration; Liquidated Damages.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.  In the event of a delay by the Company in filing a registration statement covering Registrable Securities as required by this Agreement, or in the event of a failure to maintain the effectiveness of any such registration statement as required by this Agreement, the Company shall pay to the Holders affected by such delay or failure cash, as liquidated damages and not as a penalty, in the amount of $10,000 per month (pro-rated for partial months) on a pro rata basis in proportion to the number of Registrable Securities held by such Holders, until such time as the delay or failure is cured. Such payments shall be made to each Holder in cash no later than five (5) business days after the end of each monthly period in which such liquidated damages accrue.

2.8  Indemnification.  If any Registrable Securities are included in a registration statement under this Section 2:

(a)  To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration.

 

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(b)  To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(b) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under Sections 2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

(c)  Promptly after receipt by an indemnified party under this Section 2.8 of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.8, give the indemnifying party notice of the commencement thereof.  The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action.  The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 2.8, to the extent that such failure materially prejudices the indemnifying party's ability to defend such action.  The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 2.8.

(d)  To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 2.8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this Section 2.8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Section 2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case, (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event shall a Holder's liability pursuant to this Section 2.8(d), when combined with the amounts paid or payable by such Holder pursuant to Section 2.8(b), exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder.

 

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(e)  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

(f)  Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this Section 2.8 shall survive the completion of any offering of Registrable Securities in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.

2.9  Reports Under Exchange Act.  With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall:

(a)  make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144;

(b)  use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

 

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(c)  furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (ii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration.

2.10  "Market Stand-off" Agreement.  Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter(s), during the period commencing on the date of the final prospectus relating to the registration by the Company of shares of its Common Stock and ending on the date specified by the Company and the managing underwriter(s) (such period not to exceed ninety (90) days: (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration statement for such offering; or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise.  The underwriters in connection with such registration are intended third-party beneficiaries of this Section 2.10 and shall have the right, power, and authority to enforce the provisions hereof as though they were a party hereto.  Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 2.10 or that are necessary to give further effect thereto.

2.11  Restrictions on Transfer.

(a)  The Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act.  A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Common Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement.  Notwithstanding the foregoing, no Holder may transfer the rights under this Agreement to any transferee of less than twenty-five percent (25%) of the Registrable Securities held by such Holder.

(b)  Each certificate or instrument representing (i) the Registrable Securities, and (ii) any other securities issued in respect of the securities referenced in clause (i), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Section 2.12(c)) be stamped or otherwise imprinted with a legend substantially in the following form:

 

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THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this Section 2.12.

(c)  The holder of each certificate representing Restricted Securities, by acceptance thereof, agrees to comply in all respects with the provisions of this Section 2.  Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the Company of such Holder's intention to effect such sale, pledge, or transfer.  Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder's expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a "no action" letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company.  The Company will not require such a legal opinion or "no action" letter (x) in any transaction in compliance with SEC Rule 144 or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 2.12.  Each certificate or instrument evidencing the Restricted Securities transferred as above provided shall bear, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Section 2.12(b), except that such certificate shall not bear such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities Act.

2.12  Termination of Registration Rights.  The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Section 2.1 or Section 2.2 shall terminate when all of such Holder's Registrable Securities are eligible to be sold without restriction under SEC Rule 144 within any 90-day period.

 

12

 

2.13  Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company that (i) would provide to such holder the right to include securities in any registration  or (ii) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder.

3.         Miscellaneous.

3.1  Successors and Assigns.  The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that acquires at least twenty-five percent (25%) of the Registrable Securities; provided, however, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

3.2  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware excluding that body of law pertaining to conflict of law.

3.3  Counterparts; Facsimile.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may also be executed and delivered by facsimile or electronic mail (including pdf or any electronic signature) and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

3.4  Titles and Subtitles.  The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

3.5  Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or:  (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt.  All communications shall be sent to the respective parties at their addresses as set forth on Schedule A hereto, or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this Section 6.5.

 

13

 

If notice is given to the Company, a copy shall also be sent to:

Ballard Spahr LLP

1735 Market Street, 51st Floor

Philadelphia, PA 19103-7599

 Attn:  Mary J. Mullany

Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of a majority of the Registrable Securities then outstanding; provided that the Company may in its sole discretion waive compliance with Section 2.12(c) (and the Company's failure to object promptly in writing after notification of a proposed assignment allegedly in violation of Section 2.12(c) shall be deemed to be a waiver); and provided further that any provision hereof may be waived by any waiving party on such party's own behalf, without the consent of any other party.  Notwithstanding the foregoing, this Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same fashion.  No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

3.7  Severability.  In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

3.8  Entire Agreement.  This Agreement constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

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3.9  Delays or Omissions.  No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

[Remainder of Page Intentionally Left Blank]

 

 

 

 

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

COMPANY:

OPGEN, INC.

By:  /s/ Timothy C. Dec

Name:  Timothy C. Dec

Title:  Chief Financial Officer

 

 

 

 

  

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

INVESTORS:

MERCK GLOBAL HEALTH INNOVATION FUND, LLC

By:  /s/ William J. Taranto

Name:  William J. Taranto

Title:  President

SLS INVEST AB

By:  /s/ Hans Andreasson

Name:  Hans Andreasson

Title:  Investment Director

LD PENSIONS

By:  /s/ Lars Wallberg

Name:  Lars Wallberg

Title:  Finansdirektor/CFO

By:  /s/ Karin Korneliussen

Name:  Karin Korneliussen

Title:  Controller

/s/ Martin Fuchs

 Martin Fuchstcbcontract.htm

CONTRACT FOR DISTRIBUTION CENTER AND LOGISTICS SERVICES

This Contract for Distribution Center and Logistic Services (the “Agreement”) will become effective at time of CE Mark approval (expected in Q1 2016)     

    

	
BETWEEN:

	
TCB – Technology Consult Berlin GmbH (the "Logistic Service Provider"), a company organized and existing under the laws of the Germany, with its head office located at:

 

Rheinstrasse 45-46, 12161 Berlin, Germany

 

	
AND:

	
MEDOVEX (the "Company"), a company organized and existing under the laws of the Georgia of the United States of America, with its head office located at:

 

3279 Hardee Avenue, Atlanta, GA 30341, USA

 

RECITALS:

WHEREAS, MEDOVEX imports goods from overseas and has need of a Logistics Service Provider to help manage and coordinate the importing process; and

WHEREAS, Logistics Service Provider has expertise and experience in providing these services; and

WHEREAS, MEDOVEX wishes to utilize Logistics Service Provider’s services in connection with the importation of MEDOVEX’s goods;

NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the MEDOVEX agree as follows:

 

 

	
1.

	
RECITALS

The recitals set forth above are integral to and made a part of this Agreement by reference.

 

 

	
2.

	
TERM

This Agreement shall remain in force from the date first set forth above for a period of two years and shall be automatically renewed thereafter on a year-by-year basis. This term shall always be subject to the termination provisions set forth herein.

 

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3.

	
APPOINTMENT OF LOGISTICS SERVICE PROVIDER

	
(a)

	
MEDOVEX agrees to employ Logistics Service Provider to perform the services set forth herein and Logistics Service Provider agrees to perform these services. The scope of this employment will be as follows:

MEDOVEX imports goods into Germany EU and provides distributional services to all sites in Germany, other EU countries. For Switzerland an additional agreement has to be drafted.

These services will encompass all modes of transportation.

	
(b)

	
This is a non-exclusive agreement.  Logistics Service Provider is free to perform services for other shippers and MEDOVEX is free to employ other providers to perform services covered by this Agreement.

Notwithstanding the foregoing, Logistics Service Provider shall not provide like services for direct competitors of MEDOVEX in same geographic scope as described in Section 3 (a).

 

 

	
4.

	
LOGISTICS SERVICES

Logistics Service Provider shall have the following responsibilities:

	
(a)

	
Receipt, management, and transmission of MEDOVEX shipping data;

	
(b)

	
Management of MEDOVEX’s import program on a Purchase Order basis;

	
(c)

	
Management of MEDOVEX vendors;

	
(d)

	
Receiving, booking, routing and dispatch of MEDOVEX’s cargo;

	
(e)

	
Warehousing, cargo consolidation and LCL services;

	
(f)

	
Preparation and management of shipping documentation, including documentation necessary to effect importation into the destination countries and release of cargo;

	
(g)

	
Preparation of reports to MEDOVEX;

	
(h)

	
Coordination with other MEDOVEX service providers in the importation process; and

	
(i)

	
Such other tasks as may be reasonably necessary to effectuate the safe, expeditious, and efficient flow of MEDOVEX’s import goods and related documentation.

The specific tasks encompassed by these services shall be set forth in the Standard Operating Procedures (“SOP”) for this Agreement, which are attached hereto as Exhibit A [Note: Exhibit A already used for MEDOVEX affiliate listings] and made a part hereof by reference, and/or in written instructions from MEDOVEX. Logistics Service Provider agrees to perform all tasks reasonably related to the services set forth above.

 

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5.

	
AGREEMENT ADMINISTRATION

	
(a)

	
Account Management. Logistics Service Provider shall designate a senior level executive to be the Account Manager responsible for overseeing MEDOVEX’s account. The Account Manager must have the authority to make decisions concerning all elements of MEDOVEX’s account.

Other responsibilities of the Account Manager will include: (i) working with MEDOVEX to establish a strategic relationship; (ii) overseeing coordination of all of Logistics Service Provider’s activities relating to MEDOVEX’s account; (iii) insuring that all service requirements of this Agreement are performed satisfactorily. The Account Manager will meet with MEDOVEX’s management on a regular basis to discuss Logistics Service Provider’s performance and service levels.

	
(b)

	
Procedures and Metrics. Logistics Service Provider and MEDOVEX shall cooperate in developing and continually improving the SOP for activities under this Agreement. Logistics Service Provider and MEDOVEX shall also agree on performance levels and service quality criteria (“Service Standards”) to measure and evaluate Logistics Service Provider’s services under this Agreement. These Service Standards shall be made a part of the SOP in Exhibit A [Note: Exhibit A already used for MEDOVEX affiliate listings]. Logistics Service Provider will provide reports in a format and at intervals determined by MEDOVEX measuring its performance under the Service Standards. [Note: We have not reviewed SOPs or Service Standards]

 

 

	
6.

	
COMPENSATION AND PAYMENT

	
(a)

	
MEDOVEX agrees to pay to Logistics Service Provider the rates and charges set forth in Exhibit B, attached hereto and incorporated herein by reference, as full and complete compensation for the services to be provided hereunder. Such rates may be amended or changed only with the mutual written agreement of both parties.

	
(b)

	
Logistics Service Provider shall invoice MEDOVEX within two to five business days of the end of each month for all compensable services performed during that week. Invoices shall be in the form attached to this Agreement as Exhibit C. Payment of each invoice shall be made by MEDOVEX within 15 days following receipt. Logistics Service Provider agrees that no penalties or interest will be assessed to another 15 days for past due amounts.

 

 

	
7.

	
INDEPENDENT CONTRACTOR

Logistics Service Provider is an independent contractor and shall have sole and exclusive control over the manner in which it, its employees and agents perform the services to be provided under this Agreement. Logistics Service Provider shall have the right to engage and employ such individuals and agents as may be necessary in connection with the services to be provided under this Agreement, provided that such individuals and agents shall be subject to control, contractual or otherwise, solely and exclusively by Logistics Service Provider.

 

 

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8.

	
LIABILITY

	
(a)

	
Logistics Service Provider agrees that it will be fully responsible, without limitation, for any loss or damage to MEDOVEX’s cargo while such cargo is in the possession or control of Logistics Service Provider. Logistics Service Provider’s liability shall be for the cost of the cargo plus any expenses incurred by MEDOVEX pertaining to the cargo to the time of the loss or damage including, without limitation, duties, transportation charges, forwarding and brokerage fees, etc. This provision shall not limit or detract from MEDOVEX’s right to assert claims against other parties for the same damages including, without limitation, the ocean carrier under whose through bill of lading the cargo is carried.

	
(b)

	
Logistics Service Provider agrees that it will also be liable, without limitation, for any direct extra expenses incurred by MEDOVEX arising from Logistics Service Provider’s failure to discharge its obligations and responsibilities under this Agreement.

	
(c)

	
MEDOVEX shall have (i) twelve months from the date of delivery, or (ii) a reasonable time if the goods are not delivered, in which to file a claim with Logistics Service Provider.

	
(d)

	
All claims shall be paid, settled, or disallowed by Logistics Service Provider within 30 days of filing. If no response is received within this time, MEDOVEX will assume the claim has been allowed and deduct the amount claimed from the next payment(s) of Logistic Service Provider invoices. Whenever Logistics Service Provider disallows a claim by MEDOVEX, it shall provide a lawful reason for doing so, which shall be stated in writing by Logistics Service Provider itself, not its insurer. MEDOVEX shall have 180 days from the date of Logistic Service Provider’s response to its claim in which to file suit against Logistic Service Provider for loss or damages arising from such claim.

	
(e)

	
Logistics Service Provider shall indemnify, defend and hold harmless MEDOVEX, its officers, employees, agents, representatives and affiliates from and against any and all liability, loss, damages, claims, suits, costs or expenses, including reasonable attorneys’ fees, asserted against MEDOVEX based upon, arising out of or in connection with (i) any acts or omissions by Logistics Service Provider or its agents, sub-agents, representatives or employees, (ii) any breach or non-fulfillment of any representation, warranty or covenant of Logistics Service Provider provided herein, or (iii) any claim, losses, damages, costs, or expenses asserted against MEDOVEX by Logistics Service Provider, its employees, agents or any other person for any injury (including sickness, disease or death) or claim or injury to property arising out of or in connection with the performance of this Agreement.

	
(f)

	
No salvage of any kind or nature shall be sold or offered for sale or in any other way disposed of to any third party without the prior written consent of MEDOVEX. All salvage receipts shall be payable to MEDOVEX and credited against MEDOVEX’s claim against Logistics Service Provider.

Unless MEDOVEX directs otherwise, all freight subject to salvage shall be returned to MEDOVEX, at Logistics Service Provider’s sole cost and expense, for salvage and appropriate credit. MEDOVEX may determine, within its sole discretion, subject to a reasonableness standard, whether the goods may be salvaged, and if salvageable, the value of such salvage. Such decision will be consistent with all applicable federal and provincial regulations.

	
(g)

	
Logistics Service Provider’s responsibilities and liabilities set forth above shall not be limited in any manner whatsoever by any terms incorporated by reference into this Agreement or contained in documentation issued by Logistics Service Provider.

	
(h)

	
Indemnity. Logistics Service Provider shall at all times (both during and after the term hereof) indemnify, defend and hold harmless MEDOVEX, its agents and employees against and from any and all claims, losses, damages, costs, penalties, fines, legal fees and all other expenses relating to, arising out of or connected with Logistics Service Provider’s services and/or acts or omissions of Logistics Service Provider, its employees or agents, of every nature or character (including, but without limitations, claims for personal injury, death and damage to property, clean-up costs from commodity spills and damage to the environment) asserted against MEDOVEX (a) by any agent or employee of Logistics Service Provider or (b) by any other person.

 

 

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9.

	
RECEIPTS

Each incident of transportation of property under this Agreement shall be evidenced by a written receipt in a form and manner approved by MEDOVEX. To the extent any term or condition of any receipt conflicts in any way with any term or condition of this Agreement, this Agreement shall take precedence and prevail.

 

 

	
11.

	
INSURANCE

	
(a)

	
Logistics Service Provider shall at all times during the term of this Agreement and any period during which Logistics Service Provider provides services pursuant to Section 22 hereof following termination of this Agreement, at its own expense, have and maintain in full force and effect, Comprehensive General Liability and Cargo Damage Insurance with reliable insurance companies acceptable to MEDOVEX, and in the following amounts, which amounts may be subsequently modified by MEDOVEX upon 60 days written notice: $ 1 Million Comprehensive General Liability; $250,000 Cargo Damage. (Note: Are these sufficient amounts in [CURRENCY])

 

	
(b)

	
Logistics Service Provider will not cancel or change coverage of the insurance without first giving MEDOVEX 30 days prior written notice, and that the Logistics Service Provider will be liable to MEDOVEX for any and all damages resulting from it’s failure to give such notice.

 

 

	
12.

	
NO LIEN

Logistics Service Provider shall have no lien on any shipment or portion thereof for which it provides services under this Agreement or on any documentation relating thereto.

 

	
13.

	
GOVERNING LAW / DISPUTE RESOLUTION

It is the intention of the MEDOVEX parties that the provisions of this Agreement shall be construed and enforced according to the laws of the Georgia of the United States, without regard to its conflict of law rules. All controversies and claims arising hereunder, and all actions and proceedings, shall be brought to a court of Georgia of general jurisdiction or the Federal court of The United States of America and both parties consent to the venue and jurisdiction of the courts of that city. Nothing in this Agreement limits the MEDOVEX’s right to seek provisional injunctive relief in the appropriate jurisdiction.

	
14.

	
RECORDS; AUDIT

	
(a)

	
Logistics Service Provider shall keep records hereunder according to reasonable procedures established by MEDOVEX and communicated to Logistics Service Provider from time to time. Logistics Service Provider shall promptly furnish to MEDOVEX copies of all records kept hereunder upon request.

 

 

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(b)

	
MEDOVEX, its auditors or other authorized representatives or employees shall, at all reasonable times and upon reasonable notice, be afforded access to, and shall have the right to inspect and audit, all of Logistics Service Provider’s books and records relating to the performance of this Agreement to the extent reasonably necessary to assure that Logistics Service Provider is complying with the terms of this Agreement.

	
(c)

	
Logistics Service Provider shall preserve all records relating to this Agreement, including, without limitation, licenses, permits, evidences of authority issued by governmental bodies, memoranda and correspondence, for the period of time specified by MEDOVEX, or as required by law, whichever is greater.

	
(d)

	
MEDOVEX shall have the right to obtain assurances from Logistics Service Provider at any time concerning Logistics Service Provider’s financial and economic condition.

	
15.

	
ENVIRONMENTAL POLICY

MEDOVEX is committed to the goal of continuously improving its environmental impact while maintaining the highest customer service, best product selection and quality, at the lowest possible cost. MEDOVEX and Logistics Service Provider hereby commit to improving environmental quality by working closely with each other to identify opportunities and promote practices that benefit the environment.

	
16.

	
COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

Logistics Service Provider shall comply with all applicable federal, and provincial/state laws, regulations, policies and practices as well as the regulations of any other country in which it performs services under this Agreement. In particular, and without detracting from the generality of the foregoing, Logistics Service Provider shall be knowledgeable about, and fully in compliance with, any legal requirements pertaining to the transportation of hazardous materials, dangerous goods, or overweight containers.

17.           PROHIBITED PAYMENTS

Logistics Service Provider and any related entity (collectively “Logistics Service Provider”) rendering services to MEDOVEX and its subsidiaries and affiliates (collectively, (“MEDOVEX”) makes the following representations, warranties, covenants, agreements and undertakings, and accepts the following conditions:

	
(a)

	
Logistics Service Provider shall comply with all laws of the countries in which services are rendered to MEDOVEX.

Foreign Corrupt Practices Act (“FCPA”), the EU-wide Corruption of Foreign Public Officials Acts and any amendments thereto which will be supplied to Logistics Service Provider upon request. Logistics Service Provider must comply with the highest standard or requirement set by the laws of the European Union.

	
(b)

	
Logistics Service Provider, in rendering services under this Agreement, has not and will not pay, offer, or promise to pay, or authorize the payment, directly or indirectly, through third persons or otherwise, of any monies or anything of value to any government official (for purposes of this Agreement this term is defined to include any officer or employee of a government or any department, agency or instrumentality thereof,

	
(c)

	
or any public international organization, or any person acting in an official capacity for or on behalf of any such government or department, agency or instrumentality or for or on behalf of any such public international organization and any political party, official thereof or candidate for political office) of any country, for the purpose of: influencing any official act or decision by such official, person or party, or inducing such official, person or party to perform or omit any act in violation of his or its lawful duty,

 

 

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(d)

	
or to secure any improper advantage, or inducing such official, person or party to use his or its influence with a government or any of its agencies or instrumentalities to affect or influence any act or decision of such government or agency or instrumentality in order to obtain, retain or direct business for, with or to any person or entity (any such payment is a “Prohibited Payment”).

The term Prohibited Payment as used herein does not include payments in modest amounts to government employees for the purpose of expediting and securing a routine administrative action ordinarily performed by such employees, provided the recipient of such service or action is entitled to receive such service or action and the payment is customary and appropriate in the country, provided, however, that Logistics Service Provider must secure advance written approval from MEDOVEX for any such payments and must periodically report such payments to MEDOVEX pursuant to the procedures established by MEDOVEX (which include pre-approvals on a blanket basis).

The term “routine administrative action”, as used herein, refers to actions commonly performed by certain government officials, including, without limitation, obtaining permits, licenses, or other official documents in order to qualify to do business in a country; processing visas and work orders; providing police protection, mail pickup and delivery, customs and other inspections; providing phone and utility services; loading and unloading cargo and actions of a similar nature.

The term “routine administrative action” shall not refer to decisions by a governmental official related to the award or direction of new or continuing business to any person or entity;

	
(e)

	
Logistics Service Provider shall not offer or make any payment, loan or transfer of value to any director, officer, employee or agent of MEDOVEX or of its actual or potential customers or suppliers, or offer to make any payment, loan or transfer of value on behalf of MEDOVEX that is prohibited by any applicable law.

	
(f)

	
It is the intent of the MEDOVEX that no payments, loans or transfer of value shall be made that have the purpose or effect of public or commercial bribery, acceptance of or acquiescence in extortion, kickbacks or other unlawful or improper means of obtaining or retaining business. Logistics Service Provider will ensure that no commission or fee is paid by Logistics Service Provider to any third party without MEDOVEX’s prior, written approval.

	
(g)

	
Before any shareholder, officer, director or employee of Logistics Service Provider or any related party rendering services to MEDOVEX becomes a government official (as defined in subparagraph (b) above) Logistics Service Provider shall notify MEDOVEX for purposes of determining whether continued employment would be inconsistent with the representations and warranties set forth in this Section 17. MEDOVEX’s determination on this question shall be binding.

	
(h)

	
In any case where Logistics Service Provider proposes to render services to MEDOVEX by a related entity and a government official of the territory in which the services will be rendered has a financial interest in such entity, Logistics Service Provider will provide advance notification to MEDOVEX for purposes of determining whether utilization of such entity would be inconsistent with the representations and warranties set forth in this Section 17. MEDOVEX’s determination on this question shall be binding.

	
(i)

	
All expenses incurred shall be reported fully and accurately in the books and records of Logistics Service Provider and all such books and records showing expenses shall reflect the purpose of each expense and the recipient and the beneficiary of such expense, and that there will be written records of each and every service Logistics Service Provider performs on behalf of MEDOVEX.

	
(j)

	
To confirm compliance with the provisions of this Section 17, Logistics Service Provider shall answer in reasonable detail any questionnaires or other written or oral communications relating thereto from MEDOVEX, or from their outside auditors, attorneys or other designees, and shall also, upon request, make its books and records related to this provision available to MEDOVEX, or to its outside auditors, attorneys or other designees.

 

 

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(k)

	
In the event that MEDOVEX concludes that there has been a breach of the representations and warranties set forth in this Section 17, it may terminate this Agreement without further liability or obligation to pay any fees, which are associated with the activities that caused such breach.

 

	
18.

	
GLOBAL CONDITIONS

Logistics Service Provider also agrees to provide services to overseas subsidiaries or affiliates of MEDOVEX in any non-EU-Country in which Logistics Service Provider operates. These services shall be provided by Logistics Service Provider, or its subsidiaries or affiliates, pursuant to a separate agreement containing the same, or substantially the same, terms and conditions as this Agreement.

The rates in all such agreements, including this one, shall be calculated on the basis of MEDOVEX’s total volumes handled by Logistics Service Provider, its subsidiaries and affiliates, throughout the world. Neither Logistics Service Provider nor MEDOVEX shall be the guarantor of the performance of their respective subsidiaries and affiliates under these separate agreements, provided, however, that Logistics Service Provider shall be the guarantor of the rate obligations set forth in this Section.

	
19.

	
NON-ASSIGNABILITY

The rights and obligations of this Agreement are personal to Logistics Service Provider and MEDOVEX and this Agreement shall not be assignable or otherwise transferable by either party, in whole or in part, without the written consent of the other party, provided that MEDOVEX shall have the right to assign this Agreement, in whole or in part, to any entity controlling, controlled by, or under common control with MEDOVEX.

	
20.

	
CONFIDENTIALITY

MEDOVEX agrees to abide by the provisions set forth in any separately agreed confidentiality agreement between them. If no such separate agreement exists, they agree to abide by the following. As part of the business relationship between MEDOVEX and Logistics Service Provider, Logistics Service Provider may be in, or come into, possession of information or data which is not available to the public and which constitute trade secrets, know-how, and confidential information or are otherwise considered secret by MEDOVEX (hereinafter “Information”).

In consideration of the receipt of such Information and the benefits it receives under this Agreement, Logistics Service Provider agrees to maintain such Information in the utmost of confidence; to use such Information solely in connection with the business relationship created by this Agreement; and to take all measures necessary to protect such Information from disclosure.

21.           TERMINATION

	
(a)

	
This Agreement may be terminated by either party, with or without cause, upon ninety (90) days written notice before the end of each contract period as defined in section 2 of this agreement. Notwithstanding the above, either party may terminate this Agreement upon immediate written notice if the other party has failed to cure a material breach of this Agreement within sixty (60) days following written notice thereof.

 

 

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(b)

	
If a petition in bankruptcy is filed against either party of this Agreement, or a party becomes becomes insolvent, makes a general assignment for the benefit of creditors or a proposal in bankruptcy, the other party may terminate this Agreement immediately without notice and without further obligation.

	
(c)

	
Failure by either party to comply with any of its material obligations hereunder shall entitle the other party to give notice to the defaulting party requiring such defaulting party to cure such default. If such default is not cured within 30 days from receipt of such notice, the notifying party shall be entitled, without prejudice to any of its other rights under this Agreement or by law, to terminate this Agreement upon the conclusion of such 30-day cure period by giving written notice to the defaulting party upon the conclusion of such cure period.

	
(d)

	
Either party may terminate this Agreement by giving 30 days written notice to the end of a month if the other party is acquired or dissolved or has a minimum change of 51% in ownership control (directly or indirectly).

	
22.

	
CONTINUING COOPERATION

Logistics Service Provider agrees that, in the event its services under this Agreement are terminated for any reason, it will provide full and complete cooperation to assure that MEDOVEX’s cargo, data and documentation continue to be handled efficiently, safely and expeditiously during the transition of services to another service provider. In particular, and without affecting the generality of the foregoing, Logistics Service Provider agrees that it shall not delay the transportation of goods or transmission of data or documents, whether or not such goods, data or documentation are in its control or possession, during any such transition.

	
23.

	
FORCE MAJEURE

	
(a)

	
Neither MEDOVEX nor Logistics Service Provider shall be liable for damages for any delay or failure to perform any of the terms and provisions of this Agreement arising from causes beyond its control, including but not limited to, acts of God or public enemies, acts of civil or military authority, labor disputes, fires, riots, wars or conditions of war, embargoes, accidents, epidemics, floods or other unusually severe weather, closing or obstruction of highways, bridges or ferries, any of which have a material, substantial and adverse affect on either parties ability to perform pursuant to the terms of this Agreement.

	
(b)

	
The party claiming force majeure shall notify the other party within 48 hours of when it learns of the existence of such a condition and shall similarly notify the other within a period of two working days after the condition is remedied. If such condition of force majeure, however, is not remedied within 20 days, the unaffected party shall have the right to terminate this Agreement.

	
24.

	
HEADINGS

The headings contained herein are for reference purposes only and shall not be deemed to modify the text hereof.

	
25.

	
SEVERABILITY

In the event any phrase, clause, sentence, or other provision contained in this Agreement shall violate any applicable statute, ordinance, rule or EU or US law, such phrase, clause, sentence or provision shall be ineffective to the extent of such violation without invalidating any other provision of this Agreement.

 

 

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26.

	
NOTICES

Notices hereunder shall by given by mail, postage prepaid, or via facsimile transmission, to the parties at the following addresses:

 

 

	
MEDOVEX: 

	
Medovex Corporation3279 Hardee Avenue, Atlanta, GA 30341, USA

	
 
Logistics Service Provider:

	
 
TCB – Technology Consult Berlin GmbH, Rheinstrasse 45-46, 12161 Berlin, Germany

	
27.

	
ENTIRE AGREEMENT

This Agreement and the attached Exhibits represent the entire understanding of MEDOVEX and cannot be amended except in a writing signed by both parties. All prior discussions, understandings, negotiations and agreements are merged herein.

	
28.

	
WAIVER

The failure of either party to insist in any one or more instances upon strict performance of any of the provisions of this Agreement or to take advantage of all of its rights hereunder shall not operate as a continuing waiver of any of its rights exercisable under this Agreement.

	
29.

	
PRECEDENCE

The terms of this Agreement, including its Exhibits, shall be superior to and take precedence over, any trading conditions, standard terms and conditions, or forms issued by Logistics Service Provider in the course of performing services under this Agreement and this Agreement and Exhibits shall govern in the event of a conflict. In the event of any conflict between this Agreement and any of the Exhibits to this Agreement, the terms of the Agreement shall prevail.

	
30.

	
SURVIVAL

The following provisions of this Agreement shall survive cancellation, termination, or expiration of the Agreement: 6, 8, 10, 12, 13, 14, 18, 20, 22, 23, 24 and 26.

	
31.

	
CURRENCY

Unless specified otherwise, all statements of or references to amounts in this Agreement are to lawful money of Germany and Euro-Zone (EURO).

 

 

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IN WITNESS WHEREOF, each party to this agreement has caused it to be executed at BERLIN, GERMANY on the date indicated above.

                                                                                     

 

	
 LOGISTIC SERVICES PROVIDER

 

	
 Medovex Corporation

 

	
_________________

Authorized Signature

 

	
_________________

Authorized Signature

 

	 Gerald Schröder, CEO	 Jarrett Gorlin, CEO

 

                                                                                          

 

 

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EXHIBIT A

AFFILIATE LISTING, STANDARD OPERATING PROCEDURES & SERVICE STANDARDS

 

1. Logistics, Warehousing and Customer Service Support

 

	
  

	
-  Store your products properly  

 

	
  

	
-  Managing of expiration dates  

 

	
  

	
-  Using our warehousing software with LOT-Management

 

	
  

	
-

	
Provide and guarantee traceability for products in and out 

 

	
  

	
-  Shipping goods to (enter Countries) other Countries on request  

 

	
  

	
-  Invoicing of your goods with our own accountancy system  

 

	
  

	
-  Customs regulations and applications for shipments leaving the EU

 

	
  

	
-  Management of customer complaints  

 

	
  

	
-  Issuing of monthly reports to customer  

 

	
  

	
-  English and German speaking customer service via mail, fax and  telephone on regular business days Mo-Fr 8 am – 5 pm (except public holidays in the Federal State of Berlin, Germany)  

 

	
  

	
-  Customer service in other languages must be ordered separately  

 

	
  

	
-  Order cut-off time 2pm  Central European Time

 

 

	
  

	
2. Accounting, Customs Declarations & Management, Office Support, Asia Pacific Entity

 

	
  

	
-  Acting as a Fiscal Representative (necessary, if there is no legal entity in the AP Market)  

 

	
  

	
-  All paperwork and contacts with local authorities  

 

	
  

	
-  All paperwork and contacts with financial authorities  

 

	
  

	
-  Full accountancy procedures including receipt storing for more than 10  years (legally required)  

 

Use of a certified accountancy software, which is updated regularily

 

 

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-  Preparation of VAT tax declarations  

 

	
  

	
-  Handling and management of VAT  

 

	
  

	
-  Communication with a Certified Public Accountant (CPA costs for annual  tax declaration and audited statements are not included)  

 

	
  

	
-  Management of customs requests on taxation questions  

 

	
  

	
-  Communication with Chamber of Commerce and Industry  

 

	
  

	
-  Office support for German branch including provision of a letter box for German branch

 

	
  

	
-  Mail- & telephone service Mo-Fr. 8am – 5pm (except public holidays in the Federal State of Berlin, Germany

 

	
  

	
-  Support with incorporation of a legal entity in Germany

 

 

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EXHIBIT B

RATES AND CHARGES

 

1. For all Logistics, Warehousing & Customer Service Support

 

Up to 50 shipments per month                                      € 1,900.00 per month

 

Up to 100 shipments per month                                     € 2,900.00 per month

 

Up to 200 shipments per month                                     € 3,900,00 per month

 

Up to 400 shipments per month                                     € 4,900,00 per month

 

Up to 600 shipments per month                                     € 5,900,00 per month

 

Up to 800 shipments per month                                     € 6,900,00 per month

 

 

2. For all Accounting, Customs Declarations & Management, Office Support etc.

 

 Monthly based flat fee                                           € 2,900,00 per month

 

Shipping costs will be charged on a separate UPS account by Medovex. Costs for a Certified Public Accountant (necessary once a year) will also be charged separately.  

 

3. Extra support (on request only)

 

	
  

	
-  Dunning support  

 

	
  

	
-  Replenishment of consignment stocks at clinical sites  

 

	
  

	
-  Support with product recalls  

 

	
  

	
-  Customer Mailings (Marketing, customer information)  

 

	
  

	
-  Additional customer service on request

 

	
  

	
 Rate per hour:                                                      € 89  

 

 

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4. Warehousing Database (to be purchased for you)

 

	
  

	
-  Hospital database with all  D/A/CH sites  

 

	
  

	
-  Barcoding system to manage stocks, order times and replenishment  

 

	
  

	
-  Sales reports by customer and product  

 

	
  

	
-  Management of LOT numbers  

 

	
  

	
-  Necessary data for an ISO certified recall procedure  

 

	
  

	
Database can be used worldwide, if needed

 

One-off purchase                                                                        € 4,900,00

 

Extra Programming per hour (if necessary and ordered)       € 99

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EXHIBIT C

INVOICE FORMAT

Invoice format will be provided by Medovex at a later time.

 

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