Document:

Exhibit 10.38

 

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

 

FOURTH AMENDMENT

TO

AMENDED AND RESTATED

BOVINE VACCINE DISTRIBUTION
AGREEMENT

 

                This Fourth Amendment (the “Fourth
Amendment”) is entered into as of the 
16th day of November, 2007 (“Effective Date”) by and
between DIAMOND ANIMAL HEALTH, INC., an Iowa
corporation with offices at 2538 Southeast 43rd Street, Des Moines,
Iowa 50317 (“Diamond”) and AGRI LABORATORIES, LTD.,
a Delaware corporation, with offices at 20927 State Route K, St. Joseph,
Missouri 64505 (“Distributor”) as an amendment to that certain Amended
and Restated Bovine Vaccine Distribution Agreement dated as of September 30,
2002 between Diamond and Distributor (the “Original Agreement”), as
amended by that certain First Amendment dated as of September 20, 2004
(the “First Amendment”), that certain Second Amendment dated as of December 10,
2004 (the “Second Amendment”) and that certain Third Amendment dated as
of May 26, 2006 (the “Third Amendment”) (collectively, the “Agreement”).

 

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

 

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

 

                NOW, THEREFORE, the parties
agree as follows:

 

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

 

                2.             Exclusivity. 
Section 1.02 of the Agreement is hereby deleted in its entirety and
replaced with the following paragraphs:

 

Distributor’s
distribution rights under the Agreement shall be exclusive in the United
States, Africa and Mexico for all products identified on Exhibit A
attached to the Agreement and Additional Products added pursuant to Section 2
through Contract Year 2009, except as set forth in this paragraph, and unless
terminated earlier in accordance with the provisions of the Agreement.  Distributor’s distribution rights under the
Agreement shall be non-exclusive during the remaining term of the Agreement
following Contract Year 2009.  In
addition, Distributor’s rights under this Agreement shall be non-exclusive in
Canada for all Products through Contract Year 2008 and Distributor shall have
no distribution rights in Canada after Contract Year 2008.  Notwithstanding the foregoing, (i) Distributor
shall have no distribution rights for any Products

 

 

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

 

containing
[***] antigens listed on Exhibit C without the prior written
consent and agreement of [***]; (ii) Distributor acknowledges that [***]
has exclusive rights to distribute in Canada the product combinations (and
lesser fallout products containing [***] antigens) described in Exhibit C;
(iii) Diamond and its Affiliates may sell, have sold and otherwise
distribute to [***] without restriction the individual [***] antigens listed in
Exhibit C; (iv) Diamond and its Affiliates may sell, have sold
and otherwise distribute to [***] without restriction the individual antigens
and monovalent vaccines (i.e., a vaccine containing a single bovine antigen)
listed in Exhibit B; and (v) Diamond and its Affiliates may
sell, have sold, and otherwise distribute to [***] without any restriction
biological veterinary products containing antigens specified in Exhibit D
to be used in solid dose configurations or using [***] technologies.

 

It
is further recognized by the parties hereto that the parties will make good
faith efforts to hereafter negotiate fair and equitable agreements as between
them for the sale of bulk antigens to other vaccine companies which sales
should be included in the Qualified Revenue requirements as set forth in Section 1.04(ii).  If the parties hereto cannot agree for the
sale of Bulk Antigens to other vaccine companies in territories in which
Distributor has exclusivity, then Diamond shall be prohibited from making any
Bulk Sales, except as set forth in Section 1.02.

 

3.             Appendices. Exhibit A,
AA, B, C and D of the Agreement are hereby deleted each in its entirety and
replaced with Exhibit A, AA, B, C and D of this Fourth Amendment,
respectively.

 

4.             Territory.  Section 1.03 of the Agreement is hereby
deleted in its entirety and replaced with the following paragraph:

 

Subject
to the terms and conditions of this Agreement, Distributor is authorized to
sell, have sold and otherwise distribute Products and Additional Products added
pursuant to Section 2 (hereafter collectively referred to as (“All
Products”)) in the United States, Africa, Mexico and Canada, limited only as
provided in Section 1.02; provided, that notwithstanding any provision of
this Agreement to the contrary, Distributor shall have no distribution rights
in Canada after Contract Year 2008.

 

5.             Remaining R&D Agreement.  On September 20, 2004, Distributor and
Diamond entered into a research, development and licensing agreement (the “Remaining
R&D Agreement”).  The parties agree
that the remaining activities required to be performed by Diamond under the
current Research and Development Program of the Remaining R&D Agreement are
attached hereto as point 3 in Exhibit E and shall be performed
subject to the terms and conditions of the Remaining R&D Agreement.  The parties agree, furthermore, that upon

 

 

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

 

completion
of each activity in Exhibit E, all payments due Diamond from Distributor
corresponding to such activity will be paid. 
In addition the parties agree that at a logically reasonable time with
respect to [***], Diamond shall use its reasonable best efforts to perform
[***] solely at Diamond’s cost. The parties agree that Diamond will pursue
[***] for [***] regardless of the regulatory issues with [***]. For the
purposes of this Amendment, “[***]” means [***].

 

                6.             Confidentiality of Agreement.  Notwithstanding any provision of the
Agreement to the contrary, this Fourth Amendment shall be publicly available
information for SEC filing, press release and other discussion purposes;
provided, the parties shall agree to a draft of this Fourth Amendment (the “Redacted
Version”) including highlighted items which shall be redacted from any initial
SEC filings and shall be deemed Confidential Information under Section 13.05
of the Agreement.  The parties also agree
to a press release to announce this Fourth Amendment, attached hereto in Exhibit F,
which shall be issued after the parties have agreed on the Redacted
Version.  If the parties do not mutually
agree on the Redacted Version and issue the press release in Exhibit F
prior to December 31, 2007, this Fourth Amendment shall be null and void.

 

                7.             Captions. 
The captions set forth in this Fourth Amendment are for convenience only
and shall not be used in any way to construe or interpret this Fourth
Amendment, the Agreement, or the Remaining R&D Agreement.

 

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

 

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

 

	
   

  	
  DIAMOND ANIMAL HEALTH, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jason Napolitano

  
	
   

  	
  Its:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  AGRI
  LABORATORIES, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Steve
  Schram

  
	
   

  	
  Its:

  	
  CEO/President

  

 

 

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

 

EXHIBIT A

 

Initial Products

 

I.              Modified Live Products:

 

	
   

  	
   

  	
   

  	
  Pricing (USD)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tradename

  	
  Antigens

  	
  [***]

  	
  [***]

  	
  [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Titanium BRSV

  	
  BRSV

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium BRSV
  Vac3

  	
  BRSV, PI3, IBR

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium 5

  	
  BRSV, PI3, IBR,
  BVD1, BVD2

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  Titanium 5 L5

  	
  BRSV, PI3, IBR,
  BVD1, BVD2, Lepto 5

  	
  [***]

  	
  [***]

  	
  [***]

  
	
  [***]

  	
  [***]

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium 3+ BRSV
  LP*

  	
  BRSV, PI3, IBR,
  BVD1, BVD2, L. pomona

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium 3+ LP*

  	
  IBR, BVD1, BVD2,
  PI3, L.pomona

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium IBR

  	
  IBR

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium IBR LP*

  	
  IBR, L. pomona

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium 3

  	
  IBR, BVD1, BVD2

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium 4

  	
  IBR, PI3, BVD1,
  BVD2

  	
   

  	
  [***]

  	
  [***]

  
	
  Titanium 4 L5

  	
  IBR, PI3, BVD1,
  BVD2, Lepto 5

  	
   

  	
  [***]

  	
  [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  

Above Pricing based on
Standard Batch Sizes:

[***]dose Large Freeze
Dryer- [***] units / [***] doses             Small
Freeze Dryer- [***] units / [***] doses

[***] dose             Large Freeze Dryer- [***]units /
[***] doses Small Freeze Dryer- [***]
units / [***] doses

* =  Titanium + LP combinations have [***] unit
Standard Batch size irrespective of 
presentation (Dose volume)

 

Any product or
combination not listed above that is desired by Distributor may be added to
this Exhibit pursuant to Section 2 of Agreement and new pricing will
be established; provided, that such additional Products shall qualify as “Initial
Products” only if they meet the definition of “Initial Products” set forth in Section 13.08
of the Agreement.

 

II.            Killed Products:

 

	
   

  	
   

  	
   

  	
  Pricing (USD)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tradename

  	
  Antigens

  	
   

  	
  [***]

  	
  [***]

  
	
  MasterGuard
  Preg.5

  	
  KIBR, KBVD1,
  KBVD2, MLV BRSV, PI3

  	
   

  	
  [***]

  	
  [***]

  
	
  MasterGuard 10

  	
  KIBR, KBVD1,
  KBVD2, MLV BRSV, PI3, L5

  	
   

  	
  [***]

  	
  [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Above Pricing
  based on Standard Batch Sizes

  
	
  [***] dose

  	
  [***] units / [***] doses

  	
   

  	
   

  	
   

  
	
  [***] dose

  	
  [***] units / [***] doses

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tradename

  	
  Antigens

  	
   

  	
  [***]

  	
  [***]

  
	
  [***]

  	
  [***]

  	
   

  	
  [***]

  	
  [***]

  
	
  [***]

  	
  [***]

  	
   

  	
  [***]

  	
  [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Above Pricing
  based on Standard Batch Sizes

  
	
  [***] dose

  	
  [***] units / [***] doses    or            [***] units / [***] doses

  	
   

  	
   

  	
   

  
	
  [***] dose

  	
  [***] units / [***] doses    or            [***] units / [***] doses

  	
   

  	
   

  	
   

  

 

 

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

 

EXHIBIT AA

 

Potential Additional Antigens that qualify to be

Classified as “Initial Products” per Section 13.08

 

[***]

·              [***]

·              [***]

·              [***]

·              [***]

·              [***]

·              [***]

·              [***]

 

 

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

 

EXHIBIT B

 

[***]

 

[***] Antigens or [***]
Vaccine

 

Infectious Bovine [***]

 

Bovine [***]

 

> [***]

 

> [***]

 

Bovine [***]

[***]

 

[***]

(Master Cell Stock)

 

 

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

 

EXHIBIT C

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

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

 

EXHIBIT D

 

[***]

 

                                                Diamond
antigens to be incorporated into the [***] or Solid Dose Technologies:

 

                                                                [***]

 

                                                                [***]

 

                                                                [***]

 

                                                                [***]

 

                                                                [***]

 

                                                                Note:  [***] Component contains both Type I and
Type II

 

 

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

 

EXHIBIT E

 

1.               [***]

2.               [***]

3.               [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

 

Note: All activities
subject to current [***] regulations and guidance.

 

 

EXHIBIT F

 

Press Release

 

Press
Release Logo of Heska Corporation

 

 

FOR IMMEDIATE RELEASE

 

At Heska Corporation:

Jason
Napolitano, Executive Vice President & CFO

        (970) 493-7272, Ext. 4105

 

Heska Announces
Amended Agreement with AgriLabs

 

LOVELAND, CO, November 30, 2007 — Heska Corporation (NASDAQ: HSKA) today announced its Des Moines-based subsidiary
(“Heska Des Moines”) has amended its bovine vaccine distribution agreement with
Agri Laboratories, Ltd. (“AgriLabs”). 
Heska Corporation (“Heska” or the “Company”) reports revenue generated
under this agreement in Heska’s Other Vaccines, Pharmaceuticals and Products
segment.  Under the terms of the amended
agreement, Heska Des Moines agreed to fund a portion of development spending
under the remaining research and development agreement with AgriLabs in return
for certain distribution rights.

 

Under the amendment, AgriLabs will continue to market the
underlying bovine vaccines in the United States, Africa and Mexico through December 15,
2013.  Subject to minimum purchase
requirements, AgriLabs’ rights in these regions will be exclusive through December 15,
2009.  Heska Des Moines is free to sell
these bovine vaccines to any party of its choosing in other regions of the
world.  AgriLabs will also maintain
non-exclusive rights to these bovine vaccines in Canada through December 15,
2008.

 

“The vaccines underlying this agreement are well known in
the United States and Africa cattle markets where they are sold under AgriLabs’
label and tradenames Titanium® and MasterGuard®.  We were pleased when AgriLabs began to sell
these vaccines in new markets, first in Africa and most recently in Mexico,” said Robert Grieve, Heska’s Chairman and
CEO.  “We are pleased to continue our
positive working relationship with AgriLabs and continue to benefit from their
livestock market expertise.”

 

“We are proud of the leadership position we have
established for these vaccines.  Our
research and development agreement with Heska Des Moines is the cornerstone of
our commitment to maintain the preeminence of these vaccines in the marketplace,”
commented Steve Schram, AgriLabs’ President and CEO.  “We are pleased Heska Des Moines has agreed
to fund a portion of this effort.  We
view this as another installment in a long history of mutually beneficial
agreements between our companies.”

 

 

About Heska

Heska Corporation
(NASDAQ: HSKA) sells advanced veterinary diagnostic and other specialty
veterinary products.  Heska’s
state-of-the-art offerings to its customers include diagnostic instruments and
supplies as well as single use, point-of-care tests, vaccines and
pharmaceuticals.  The company’s core
focus is on the canine and feline markets where it strives to provide high
value products and unparalleled customer support to veterinarians.  For further information on Heska and its
products, visit the company’s website at www.heska.com.

 

About
AgriLabs

AgriLabs is the largest
private label marketer of veterinary vaccines and pharmaceuticals in the United
States.  AgriLabs is proficient in sales,
marketing and technology transfer of current and future compounds or antigens
for both food and companion animal markets. 
The AgriLabs distribution network of distribution owners is the largest
in the United States and has the ability to efficiently reach the livestock and
consumer marketplace through various veterinary, direct and retail channels.  For additional information on AgriLabs and its
products or distributors, visit the company website at www.agrilabs.com

 

Forward-Looking Statements

This announcement contains forward-looking statements regarding Heska’s
future financial and operating results. 
These statements are based on current expectations and are subject to a
number of risks and uncertainties.  In
addition, factors that could affect the business and financial results of Heska
generally include the following: risks regarding the commercialization and
market acceptance of products the Company may introduce in the future; risks
relating to the size and stability of markets for the Company’s products, such
as foreign markets for cattle vaccines which are generally smaller than the
corresponding domestic market and may be subject to greater volatility;
uncertainties regarding the outcome of research and development efforts, which
may not yield marketable products or any products at all; uncertainties
regarding reliance on third parties to whom substantial marketing rights to
existing products have been granted, such as reliance on an exclusive
distribution agreement with AgriLabs and the affiliated risks of relying on
perceptions of AgriLabs’ brand and trademarks in the marketplace; competition;
and the risks set forth in Heska’s filings and future filings with the
Securities and Exchange Commission, including those set forth in Heska’s Annual
Report on Form 10-K for the year ended December 31, 2006 and
Quarterly Report on Form 10-Q for the quarter ended September 30,
2007.

 

###Exhibit 10.43

 

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

 

CLINICAL CHEMISTRY ANALYZER AGREEMENT

 

                THIS CLINICAL CHEMISTRY ANALYZER
AGREEMENT (this “Agreement”) is entered into as of January 30, 2007
(the “Effective Date”) by and between FUJIFILM Corporation., a Japanese
corporation having its principal place of business at 26-30, Nishiazabu 2-chome,
Minato-ku, Tokyo 106-8620 Japan (“Fuji”) and Heska Corporation, a
Delaware corporation, having its principal place of business at 3760 Rocky
Mountain Avenue, Loveland, CO  80538, USA
(“Heska”).

 

W  I  T  N  E  S
S  E  T  H:

 

                WHEREAS, Fuji is a manufacturer of diagnostic health care
equipment and desires to obtain a distributor of Products (as hereinafter
defined) in the veterinary market (the “Field” as hereinafter defined)
in the Territory (as hereinafter defined);

 

                WHEREAS, Heska is a distributor of various products in the
Field in the Territory;

 

                WHEREAS, in accordance with the terms and
conditions hereof, Fuji is willing to appoint Heska as its exclusive
distributor of Products in the Territory, and Heska is willing to accept such
appointment.

 

                NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, and upon the terms and subject to the conditions
set forth below, Heska and Fuji hereby agree as follows:

 

ARTICLE 1 — DEFINITIONS

 

The
following words and phrases, when used herein with initial capital letters,
shall have the meanings set forth or referenced below:

 

1.1                                 “Affiliate”
shall mean, with respect to each Party (as hereinafter defined), any legal
entity that is, directly or indirectly, controlling, controlled by or under
common control with such Party.  For
purposes of this definition, a Party shall be deemed to control another entity
if it owns or controls, directly or indirectly, more than fifty percent (50%)
of the voting equity of the other entity, or directly or indirectly possesses
the power to direct, or cause the direction of, the management and policies of
such other entity by any means whatsoever.

 

 

1.2                                 “Analyzer”
shall mean a non-handheld device, capable of performing chemical and
electrolyte analyses of biological fluids, as described in Exhibit 1.13
and having the Specifications set forth in Exhibit 4.1.

 

1.3                                 “Calendar
Quarter” shall mean a period of three (3) consecutive calendar months
commencing on January 1, April 1, July 1 or October 1
during the Term.

 

1.4                                 “Calendar
Year” shall mean each consecutive twelve (12) month period prior to the
termination of this Agreement, commencing on January 1 and ending on December 31
of each such Calendar Year.

 

1.5                                 “Competing
Product” shall mean a non-handheld device, capable of performing chemical
and electrolyte analyses of biological fluids.

 

1.6                                 “Confidential
Information” shall mean this Agreement and any and all technical data,
information, materials and other know-how, including trade secrets, presently
owned by or developed by, on behalf of, either Party and/or its Affiliates
during the Term (as hereinafter defined) which relates to a Product, its
development, manufacture, promotion, marketing, distribution, sale or use and
any and all financial data and information relating to the business of either
of the Parties and/or of their Affiliates, which a Party and/or its Affiliates
discloses to the other Party and/or its Affiliates in writing and identifies as
being confidential, or if disclosed orally, visually or through some other
media, is identified as confidential at the time of disclosure and is
summarized in writing within thirty (30) days of such disclosure and identified
as confidential, except any portion thereof which:

 

(a)                                  is known to the
receiving Party and/or its Affiliates at the time of the disclosure, as
evidenced by its written records;

 

(b)                                 is disclosed to
the receiving Party and/or its Affiliates by a Third Party having a right to
make such disclosure;

 

(c)                                  becomes
patented, published or otherwise part of the public domain through no fault of
the receiving Party and/or its Affiliates; or

 

(d)                                 is independently developed by or for the
receiving Party and/or its Affiliates without use of Confidential Information
disclosed hereunder, as evidenced by its written records.

 

1.7                                 “End User”
shall mean a natural person, corporation, partnership, trust, joint venture,
government authority or other legal entity or organization in the Territory,
other than Heska or Fuji and/or their respective Affiliates, that purchases
Products under this Agreement for use or consumption in the Field by itself or
its Affiliates.

 

1.8                                 “Extension
Term” shall mean each additional renewal of the term of this Agreement, if
any, following the Initial Term or another Extension Term, as set forth in Section 9.1.

 

 

1.9                                 “Field”
shall mean the veterinary market.

 

1.10                           “Initial
Term” shall mean the time beginning on the Effective Date and ending on December 31st
of the Calendar Year in which the fifth (5th) annual anniversary of
the Launch Date occurs, as set forth in Section 9.1.

 

1.11                           “Launch Date”
shall mean the date on which Heska begins Sale of Products.

 

1.12                           “Party”
shall mean Fuji or Heska and “Parties” shall mean Fuji and Heska.

 

1.13                           “Products”
shall mean the Analyzers developed under Section 2.1 hereunder,
consumables (e.g., slides), spare parts and associated products manufactured by
or for Fuji, including those listed on Exhibit 1.13 subject to
amendment pursuant to Section 2.4.

 

1.14                           “Purchase
Price” shall mean the price, less any discounts, for Products purchased by
Heska and its Affiliates from Fuji and its Affiliates hereunder, as set forth
on Exhibit 1.13.

 

1.15                           “Sale”, “Sell”
or “Sold” shall mean to sell, hire, let, rent, lease, license or
otherwise dispose of Product, either directly or indirectly through
Subdistributors, to a Third Party or Affiliate, provided such Affiliate is an
end user of Products for commercial purposes for monetary or other valuable
consideration.  “Sale”, “Sell” or “Sold”
shall not include a transaction where samples of Product are supplied without
charge in connection with clinical or other experimental trials.

 

1.16                           “Specifications”
shall mean the features, functionality and characteristics of the Products, as
set forth in Section 4.1.

 

1.17                           “SpotChem
Products” shall mean SPOTCHEMTM EZ Dry Chemistry analyzers and related
products, including but not limited to consumables and spare parts.

 

1.18                           “Subdistributor”
shall mean a natural person, corporation, partnership, trust, joint venture,
government authority or other legal entity or organization in the Territory,
other than Heska or Fuji and/or their respective Affiliates, which purchases
Products from Heska for the purpose of resale to End Users for use in the
Field.

 

1.19                           “Technical
Documentation” shall mean all documents prepared by Fuji in the ordinary
course of business that describe the Products in terms of their intended use
and Product claims.  Such documents may
take the form of user instructions, system manuals, product updates or
technical bulletins, but are not limited to such forms.

 

1.20                           “Term”
shall have the meaning set forth in Section 9.1.

 

1.21                           “Territory”
shall mean United States of America and Canada.

 

 

1.22                           “Third Party”
shall mean a natural person, corporation, partnership, trust, joint venture,
governmental authority or other legal entity or organization other than the
Parties and/or their Affiliates.

 

ARTICLE 2 — DEVELOPMENT

 

2.1                                 Development Plan. Fuji and Heska agree to work together to develop the Analyzer and its
consumables that meet the Specifications. 
The development of such Analyzer and consumables will be conducted in
accordance with an agreed-upon development plan (the  “Development Plan”).  Each Party will contribute the resources,
such as technical information and personnel and expense, as outlined in the
Development Plan.

 

2.2                                 Intellectual Property Rights.  All rights
and title to inventions and/or discoveries, patentable or otherwise, developed
under this Agreement (“Inventions”) solely by Fuji shall belong to
Fuji.  All rights and title to Inventions
developed solely by Heska shall belong to Heska.  All rights and title to Inventions developed
jointly by Fuji and Heska shall belong jointly to Fuji and Heska.  The patent laws of the United States relating
to inventorship shall determine ownership rights with respect to patentable
inventions.  Each Party shall notify the
other Party promptly in writing of each Invention.

 

2.3                                 Right of First Negotiation with respect to Inventions.  Within thirty
(30) days after written notice of an Invention pursuant to Section 2.2:

 

(a)          Fuji shall give Heska a written notice offering to
enter into negotiations to license, on an exclusive basis, Fuji’s rights to
Heska with respect to any patent rights,technology, manufacturing, distribution
or other rights in and to such Invention in the Field and in the Territory (the
“Veterinary Rights”).  If, within
thirty (30) days of receipt of such notice, Heska notifies Fuji that it is
interested in licensing the Veterinary Rights, Heska and Fuji shall enter into good
faith negotiations with respect thereto and Fuji will not enter into any
agreement or arrangement with any Third Party with respect to the Veterinary
Rights unless Heska and Fuji fail to execute a letter of intent or binding
agreement within ninety (90) days after Fuji’s receipt of Heska’s notice of
interest.  If the Parties do not execute
a letter of intent or agreement within such ninety (90) day period, Fuji shall
be free to offer the Veterinary Rights to Third Parties; provided however, that
until twelve (12) months after the ninety-day period has expired without the
letter of intent being executed with Heska, Fuji shall not offer or enter into
any agreement or other arrangement with respect to the Veterinary Rights with a
Third Party on terms more favorable to such Third Party than those offered in
writing to Heska by Fuji; and

 

(b)         Heska shall give Fuji a written notice offering to
enter into negotiations to license, on an exclusive basis, Heska’s rights to
Fuji with respect to any patent rights,technology, manufacturing, distribution
or other rights in and to such Invention outside the Field (the “Non-Veterinary
Rights”).  If, within thirty (30)
days of receipt of such notice, Fuji notifies Heska that it is interested in
licensing the Non-Veterinary Rights, Fuji

 

 

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

 

and Heska shall enter into good faith
negotiations with respect thereto and Heska will not enter into any agreement
or arrangement with any Third Party with respect to the Non-Veterinary Rights
unless Fuji and Heska fail to execute a letter of intent or binding agreement
within ninety (90) days after Heska’s receipt of Fuji’s notice of
interest.  If the Parties do not execute
a letter of intent or agreement within such ninety (90) day period, Heska shall
be free to offer the Non-Veterinary Rights to Third Parties; provided however,
that until twelve (12) months after the ninety-day period has expired without
the letter of intent being executed with Fuji, Heska shall not offer or enter
into any agreement or other arrangement with respect to the Non-Veterinary
Rights with a Third Party on terms more favorable to such Third Party than
those offered in writing to Fuji by Heska.

 

2.4                                 Improved Products. Any and all improvements in and to the Products shall, automatically
upon their commercial availability, become Products under this Agreement.

 

ARTICLE 3 — APPOINTMENT TO MARKET AND DISTRIBUTE; REQUIREMENTS

 

3.1           Exclusive
Appointment; Requirements.  As
of the Effective Date, Fuji hereby appoints Heska and its Affiliates for the
Term as Fuji’s exclusive distributor of Products in the Field in the Territory,
and Heska accepts such appointment; provided, however, if Heska fails to
purchase at least [***] per Calendar Year in any calendar Year during the Term
of this Agreement (unless Heska’s failure to purchase such Analyzers is the
result of Fuji’s failure to delivery Product by the delivery date set forth in
the applicable Purchase Order), the exclusive distributorship granted in this Section 3.1
shall change to a non-exclusive distributorship upon written notice to Heska
within thirty (30) days after expiration of such Calendar Year.  Subject to Section 4.6,  Fuji shall manufacture and sell to Heska,
and, subject to Section 3.2, Heska shall
purchase from Fuji, all of Heska’s and its Affiliates’ requirements for
marketing, promoting, Selling and distributing Products in the Territory for
use in the Field.  Except as set fort in Section 3.2, the exclusive distributorship granted in
this Section 3.1 is on the condition that Heska or its Affiliates does not
purchase from any third Party any Competing Product for marketing, promoting,
Selling and distributing for use in the field in the territory, as long as   Fuji or its Affiliates is capable of
supplying the Products to Heska. As exclusive distributor in the Field in the
Territory, Heska shall have the sole and exclusive right to market, promote,
Sell and distribute Products in the Territory for use in the Field, which right
shall operate to exclude all others, including Fuji, its Affiliates and all
Third Parties.  In furtherance of this
exclusive grant to Heska and its Affiliates, Fuji hereby agrees to use its
commercially reasonable efforts to ensure that any Products Sold outside the
Field are not directly Sold by Fuji or indirectly Sold by Fuji’s distributors
or customers to End Users in the Territory, to the extent permitted under
applicable competition laws.

 

 

3.2           Exception
to Requirements Obligations. 
Notwithstanding Heska’s and its Affiliates’ obligations not to purchase
Competing Products from any Third Party pursuant to Section 3.1,
Heska is specifically permitted to continue to purchase SpotChem Products and
to Sell and distribute SpotChem Products (i) to Affiliates and Third
Parties prior to the Launch Date, and (ii) to Heska’s and Affiliates’
customer base in existence as of the Launch Date; provided that Heska shall not
purchase any new SPOTCHEMTM EZ Dry Chemistry analyzers at any time following the
Launch Date.

 

3.3         Right
of First Refusal.  With the
exceptions of the countries specifically set forth on Exhibit 3.3,
in the event that Fuji desires to appoint a distributor of the Products in the
Field in  any
country or region outside the Territory, Fuji shall first offer in writing to
Heska the opportunity to accept such appointment, subject to the terms and
conditions of this Agreement.  Heska shall
have thirty (30)  days to accept or reject such
offer in writing in its sole discretion. 
In the event of acceptance by Heska, Fuji and Heska shall amend this
Agreement to modify the Territory to include such country or region.

 

3.4           Selling Price.  Heska, in its sole discretion, shall
determine the final sales price of Products Sold by Heska to Affiliates and
Third Parties in the Field in the Territory, and no other term or provision in
this Agreement shall be interpreted or deemed to provide Fuji with any right to
determine the final sales price of Products Sold by Heska hereunder.

 

3.5           Appointment of
Subdistributors.  Heska shall have the right to appoint Subdistributors  for the Sale of the Products in the Field
in the Territory.  Heska agrees
that, if it enters into an agreement or arrangement with any Subdistributor to
allow such Subdistributor to offer for Sale, Sell, have Sold, use, have used,
market, have marketed, distribute, have distributed, import and have imported
Products in the Field in any country or region of the Territory, Heska shall
contractually restrict such Subdistributor’s activities to sales of Products in
the Field for use in the Field by contractually restricting the Subdistributor
from reselling Products to Third Parties outside the Field outside the
Territory to the extent permitted under applicable competition laws.

 

3.6           Right of First Negotiation with respect to New Products.  Within thirty
(30) days after written notice of any new product of Fuji capable of performing
chemical and/or electrolyte analyses of biological fluids (a “New Product”),
Fuji shall give Heska a written notice offering to enter into negotiations to
purchase Heska’s and its Affiliates’ requirements for marketing, promoting,
Selling and distributing such New Product in the Territory for use in the Field (the “New Product Right”).  If, within thirty (30) days of receipt of
such notice, Heska notifies Fuji that it is interested in exercising such New
Product Right, Heska and Fuji shall enter into good faith negotiations with
respect thereto and Fuji will not enter into any agreement or arrangement with
any Third Party with respect to the New Product Right for use in the Field in
the Territory unless Heska and Fuji fail to execute a letter of intent or
binding agreement within ninety (90) days after Fuji’s receipt of Heska’s
notice of interest.  If the Parties do
not execute a letter of intent or agreement within such ninety (90) day period,
Fuji shall be free to offer the New Product Right to Third Parties for use in
the Field in the Territory.

 

 

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

 

ARTICLE 4 — SPECIFICATIONS, MANUFACTURE, SUPPLY AND DELIVERY OF
PRODUCTS

 

4.1           Specifications.  Fuji and Heska shall finalize and mutually
agree upon the Specifications for the Products in writing no later than June 30,
2007.  In the event that either party
proposes to modify the Specifications of any Products to be supplied to Heska,
both parties agree to review and discuss such proposals in good faith;
provided, however, any change to the Specifications will only be made upon the
prior written consent of both Heska and Fuji.     Except with Heska’s prior written consent,
all consumable Product that have an expiration date shall have dating of not
less than (i) [***] from the date of manufacture by Fuji and (ii) [***]
from the date of receipt by Heska.

 

4.2           Packaging and Labeling.  Fuji shall supply all packaging and labeling
required for Products.  All Product
packaging and labeling shall be as set forth in the Specifications.  All labeling and packaging shall designate
Fuji as the “manufacturer” and Heska as the “distributor” of the Products and
shall include both Parties’ logos and additional branding of both Parties as
shall be set forth in the Specifications. 
Heska shall reimburse Fuji for any additional costs incurred in
manufacturing Products as a result of changes to packaging and/or labeling
requested by Heska in writing after the Launch Date.  To the extent any of the packaging and/or
labeling to be used as contemplated hereby includes any Heska trademarks and/or
artwork, Fuji shall not acquire any right or interest therein except for the
purpose of manufacturing and packaging Products for Heska pursuant hereto.  Fuji shall be responsible for assuring that
all Product packaging materials and labels comply with applicable laws.

 

4.3           Manufacture, Sale and Purchase of
Products.  During the Term, Fuji
shall manufacture or have manufactured, release, sell and deliver to Heska
those units of Products as are ordered by Heska and accepted by Fuji hereunder
and in accordance with the Specifications for each of the Products. Each party
shall comply with all applicable rules and regulations applicable to the
manufacture or sale of the Products in the Territory in the Field, including as
applicable, those rules and regulations of the FDA, and in accordance with
all other applicable laws and regulations of countries in which Heska sells
Products.

 

4.4           Rolling Forecasts.  Prior to the end of each Calendar Quarter,
beginning at the end of the first Calendar Quarter in 2007, Heska shall provide
Fuji with a non-binding forecast of its requirements of the Products for the
following four (4) Calendar Quarters.

 

4.5           Product Orders.  Heska shall order Products on
purchase orders which shall specify the quantities of each Product ordered,
delivery dates, the identity of Products ordered, Product
price, and delivery and shipping instructions including carrier selected.  All
purchase orders shall provide Fuji with no less than [***] notice to the
specified delivery date after Fuji’s receipt of the purchase order.  All orders will be governed by the terms of
this Agreement.  To the extent that any
purchase order, confirmation of acceptance or other document contains terms in
conflict 

 

 

with,
or in addition to, the terms of this Agreement, such conflicting or additional
terms shall not be binding on the Parties unless agreed upon in advance in
writing by the Parties.

 

4.6           Acceptance of Purchase Orders.  Purchase orders in compliance with the
requirements of this Agreement shall be deemed accepted upon receipt by Fuji
and shall be acknowledged as such by Fuji within five (5) days of receipt;
provided, however, that if Heska’s purchase order of a Calendar Quarter exceeds
one-hundred and ten percent (110%) of the forecasts provided by Heska to Fuji
pursuant to Section 4.4, Fuji shall only
make commercially reasonable efforts to accept and deliver the exceeding
portion of the purchase order, but having no obligations to do so.

 

4.7           Purchase Prices.  Purchase Prices for the Products are listed
on Exhibit 1.13.  The Purchase Price set forth in Exhibit 1.13 shall be fixed for the Term.

 

4.8                                 Taxes.  The Purchase Prices do not include insurance,
freight, customs, duties, taxes, any foreign, federal, state or local taxes
that may be applicable to Products including, without limitation, sales,
excise, value-added, withholding, and other taxes other than taxes based upon
Fuji’s net income and other similar charges. 
When Fuji has the legal obligation to collect such taxes, the
appropriate amount shall be added to Heska’s invoice and paid by Heska unless
Heska provides Fuji with a valid tax exemption certificate authorized by the
appropriate taxing authority.

 

4.9           Delivery of Product; Determination
of Method of Transportation. 
Products shall be delivered FCA (Incoterms 2000) Fuji’s warehouse at
Yokohama, Japan.  The method of
transportation of the Products,
shipping destination and the carrier selected shall be as specified by
Heska in its purchase orders. Notwithstanding the foregoing, regarding the
consumable Products, Heska agrees and acknowledges that Fuji has an allowance
of +5% of the quantity of delivered Products than ordered quantity in
the firm purchase order.  In addition to
the requirements set forth in Section 4.1,
all consumable Products which has the term of validity (i.e., expiration date)
shall be delivered by Fuji within four (4) months from the date of
manufacturing such consumable Products.

 

4.10         Payments Due.  All payments due and payable hereunder shall
be made by check or wire transfer within sixty (60) days from Heska’s receipt of the Products.  The
invoiced amount shall be paid by Heska to Fuji by:  (a) wire transfer to the bank listed on Exhibit 4.10 or otherwise specified by
Fuji, or (b) certified bankers check.

 

4.11         Currency Basis.  All prices including Product Prices for
Products and payments therefor shall be in U.S. dollars (“US$”).

 

4.12         Acceptance of Product.  Heska shall not be obligated to accept any
Product that does not conform to the Specifications. Heska shall inspect all
Products upon delivery in a commercially reasonable manner.  Failure by Heska to give notice of defective
or damaged Product within the time periods specified in Section 4.13
shall be deemed a waiver of Fuji’s obligations with respect to
repair, replacement or refund as set forth below.

 

 

4.13         Defective and Improper Delivery;
Product Returns.  If Heska or a
Subdistributor or End User claims that: (a) any Product is defective; (b) incorrect
Product was shipped; or (c) there was a shortage in the shipment, and
notice in writing of such defective Product, incorrect shipment or shortage is
provided to Fuji within thirty (30) days of receipt of the shipment, then, upon
receipt of such notice, Fuji shall either replace any defective or incorrectly
shipped Product, make up any shortfall or refund any Purchase Price paid by
Heska, at Heska’s option.  If any Product
is claimed by Heska, a Subdistributor or End User to be defective and Fuji is
notified in writing of such defect in writing within fifteen (15) days of
discovery of such defect, then Fuji shall either repair, replace or provide a
refund for any such defective Product at Heska’s discretion.  Upon request by Fuji, Heska shall deliver to
Fuji, at Fuji’s cost, any returned Product with regard to which the credit is
claimed.  In addition, Fuji shall
reimburse Heska for reasonable freight expenses directly related to delivering
said Product to Fuji.

 

 

ARTICLE 5.  MARKETING OF PRODUCTS

 

5.1           Marketing.  Heska shall, at its own expense, use
commercially reasonable efforts to market and promote the Products in the
Territory.

 

5.2           Catalogs,
Bulletins.  At Heska’s written
request, Fuji shall provide Heska with reasonable quantities or electronic files
of brochures, instructional material, advertising literature and other relevant
Technical Documentation regarding the Products, at no charge to Heska.  Such documents shall be in the English
language, and may be in other languages to the extent already available.  Heska, at its own cost, may provide a
translation of the documents into the local language.

 

5.3                                 Training.  Fuji shall provide the training
to Heska as set forth in Exhibit 5.3.

 

5.4           Technical
Support.  Heska agrees to be responsible
as the first point of contact for technical support with the End User.  The term “Technical Support” shall
mean, without limitation, problem resolution, explanation of functionality and
collection of incident reports.  Fuji
will provide technical service support to Heska, its Subdistributors and End
Users as requested by Heska.

 

5.5           Warranty
Services.  Heska shall
provide a technical liaison and assistance to End Users for warranty service of
the Products.  In addition, upon mutual
written agreement of Heska and Fuji, Heska shall perform certain warranty
repairs during the term of the warranty, which shall be billed to and paid by
Fuji at mutually agreed upon labor rates.  
In order to provide such warranty repairs, Fuji shall provide
appropriate service manuals, updated service bulletins and parts in advance and
in an adequate amount to effect such repairs.

 

 

ARTICLE 6.  INTELLECTUAL PROPERTY
RIGHTS

 

6.1           Use of Trademarks and Tradenames.  Heska shall not use the trademark “Fuji” and
any other trademarks, service marks or tradenames used by Fuji to identify the
Products (the 

 

 

“Marks”)
regarding selling, distributing, marketing or promoting the Products, without
Fuji’s prior written consent, such consent not be unreasonably withheld or
delayed.  Upon Fuji’s prior written
consent with respect to each new substantive configuration of the marks that
Heska proposes to use, Heska may use the Marks solely for the purpose of
identifying Fuji as the manufacturer of the products, Heska’s distribution of
Products, and related performance under this Agreement.  For the avoidance of doubt, once Fuji
approves a particular use of the Marks, Heska shall be permitted to continue to
use such configuration of the Marks without the need to obtain additional
consent from Fuji; provided that each further use is similar to the prior
approved use.  Any substantive changes to
the configuration, however, will require Fuji’s further prior written
consent.  Further, Fuji agrees to approve
or reject any proposed new configuration of the Marks within ten (10) business
days.  The Marks and the goodwill
associated therewith are and shall remain the exclusive property of Fuji.  Heska shall not: (a) use the Marks as
part of any composite mark including any elements not approved in advance in
writing by Fuji; (b) challenge the validity or enforceability of the Marks
(unless such restriction is illegal); (c) acquire any proprietary rights
in the Marks by reason of any activities under this Agreement or otherwise; or (d) use
any Marks or Fuji’s corporate name or trade name as a part of its corporate
name or trade name, nor shall it make any representations or use any names
which may or are likely to cause the public to mistake or confuse Heska for or
with Fuji.  All uses of the marks by
Heska and any additional goodwill created thereby shall inure to the exclusive
benefit of Fuji.  Fuji, at all times
during the Term on reasonable notice, shall have the right to inspect the
materials and services on or in connection with which the Marks are use in
order to assure Fuji that its quality standards relating to the products and
Heska’s servicing and other Mark-pertinent provisions of this Agreement are
being observed.  If at any time Fuji
shall reasonably object to any use to which the Marks are put, heska shall
promptly cease any such use.

 

 

ARTICLE 7.  REPRESENTATIONS AND
WARRANTIES; RECALLS

 

7.1           Product Warranty to End Users.  Heska shall pass through to End Users Fuji’s
standard written limited warranty for all Products as set forth in Section 7.2. 
Heska shall not alter or expand such warranty; provided, however, that
nothing in this Agreement limits Heska’s ability to provide its own warranty on
any of the Products to its End Users (an “Extended Warranty”) so long as
Heska is responsible for satisfying any obligations under such Extended
Warranty that exceed Fuji’s written limited warranty.

 

7.2           Warranty.  Fuji shall extend to Heska and to Heska’s
Subdistributors or End Users standard product warranties, as set forth in Exhibit 7.2; provided, however, that any
modification to any such Product warranties shall require the prior written
consent of Heska.  Further, Fuji warrants to Heska that at the
time of delivery by Fuji, all Products sold hereunder:  (i) shall have been produced in
accordance with the Specifications; (ii) shall be free from any defect in
materials or workmanship; (iii) shall have been manufactured in accordance
with any applicable Current Good Manufacturing Practices and applicable laws
and regulations; (iv) shall be free from any security interests or other
lien or encumbrance; (v) shall have a shelf life consistent with the
requirements of this Agreement and the dating set forth thereon, if any; and (vi) do
not infringe any copyright,
patent, trade secret, trademark, or other proprietary right of any Third Party
in the Territory.

 

 

7.3           Disclaimer of
Warranties.  EXCEPT FOR THE LIMITED
WARRANTIES PROVIDED IN SECTIONS 7.1 AND 7.2,
FUJI MAKES NO OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND, AND THE
WARRANTIES OF FUJI ARE IN LIEU OF ALL OTHER WARRANTIES, INCLUDING BUT NOT
LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  EXCEPT FOR THE WARRANTY PROVIDED FOR IN SECTIONS 7.1 AND 7.2, FUJI MAKES
NO WARRANTY OF ANY KIND TO END USERS OF HESKA HEREUNDER.

 

7.4           Recall or Advisory Actions. 
If either Party proposes to recall a Product or issue an advisory letter
regarding reliability of or defects in a Product, then such Party shall first
notify the other in writing in a timely manner prior to making such recall or
issuing such advisory letter.  Each Party
shall endeavor to reach an agreement with the other regarding the manner, text
and timing of any publicity to be given such matters in time to comply with any
applicable regulatory requirements, but such Agreement shall not be a precondition
to any action that a Party deems necessary to protect users of a Product or to
comply with any applicable governmental orders. 
In the event Fuji should request Heska to recall a Product, Heska shall
take all appropriate actions to recall such Product.  Fuji shall bear the expenses of any recall
requested by it or resulting from defective manufacture or packaging by
Fuji.  Heska shall bear the expenses of
any recall resulting from improper storage, handling or delivery by Heska.  In cases where the recall is unrelated to any
fault of either Party, the expense of the recall shall be borne by the Parties
equally.

 

 

ARTICLE 8.  INDEMNIFICATION;
LIMITATION OF LIABILTY; CONFIDENTIALITY

 

8.1           Indemnification by Fuji.  Fuji shall indemnify, defend and hold Heska
harmless against all claims, losses, damages, liabilities and expenses,
including reasonable attorney’s fees and disbursements, incurred by Heska
arising with respect to, out of or in connection with any claim that (i) the
Products infringe any copyright, patent, trade secret, trademark, or other
proprietary right of any Third Party or (ii) the Products cause bodily
injury (including death), or physical damage to tangible property; provided
that Fuji is notified promptly in writing of the claim by Heska promptly after
Heska’s notice thereof  and Heska
provides reasonable assistance in the settlement or defense of such claim, at
Fuji’s expense; provided, that Product is not altered by Heska except as
specifically directed by Fuji.  If a
Product is held to constitute an infringement and its use as contemplated by
this Agreement is enjoined or threatened to be enjoined, Fuji shall at its
option and expense:  (a) procure for
Heska the right to continue to Sell and distribute the Products; or (b) replace
or modify the Products with a version that is non-infringing.  The provision of Section 8.1
above shall not apply to the extent that the infringement or damage
exists as a result of: (i) any combination of the product with other
product(s), (ii) any use of the Product other than its normal or intended
use, (iii) any modification of the Products made by a party other than
Fuji, (iv) any design or specification of the product requested by Heska,
or (v) Heska’s breach of this Agreement, or any negligent act or omission
of Heska, its employees, agents, distributors or dealers.

 

8.2           Limitation of Liability.  EXCEPT FOR CLAIMS MADE PURSUANT TO SECTION 8.1, UNDER NO CIRCUMSTANCES SHALL A PARTY BE
RESPONSIBLE TO THE 

 

 

OTHER
PARTY FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF
OR IN CONNECTION WITH THE SALE, DELIVERY, NONDELIVERY, SERVICING, USE,
MAINTENANCE, SUPPORT, CONDITION OR POSSESSION OF PRODUCTS.  THIS SECTION DOES NOT LIMIT FUJI’S
LIABILITY FOR BODILY INJURY (INCLUDING DEATH), OR PHYSICAL DAMAGE TO TANGIBLE
PROPERTY CAUSED BY FUJI OR THE PRODUCTS.

 

8.3           Confidentiality.  Neither Party shall use for any purpose,
other than as contemplated by this Agreement, or divulge to any Third Party,
any Confidential Information provided to such Party by the other Party, except
as may be required by law or judicial order.

 

8.4           Public Announcements.  Neither Party shall make any public
announcement concerning this Agreement, nor make any public statement which
includes the name of the other Party or any of its Affiliates, or otherwise use
the name of the other Party or any of its Affiliates in any public statement or
document, except as may be required by law, including the requirements of the
SEC, or judicial order, without the written consent of the other Party, which
written consent shall not be withheld unreasonably; provided, that the party
required by law to disclose shall use reasonable efforts to provide the other
party notice in writing of any proposed disclosure under this Section and
an opportunity to object to the disclosure or seek confidential treatment
thereof.

 

 

ARTICLE 9.  TERM AND TERMINATION

 

9.1           Effective Date and Term.  On the condition that Fuji’s Third Party
patent searches have been completed as satisfactorily to Fuji by May 31,
2007, this Agreement shall commence as of the Effective Date and expire on December 31st
of the Calendar Year in which the fifth (5th) annual anniversary of
the Launch Date occurs (the “Initial Term”), unless sooner terminated as
expressly provided in this Article 9.  Following the Initial Term, this Agreement
will renew automatically for additional one (1) year terms (each, an “Extension
Term”), unless (i) either Party provides not less than ninety (90)
days written notice to the other Party prior to the commencement of any
Extension Term, of its intention not to renew; provided, however, if Heska has
maintained exclusivity during then current Calendar Year by meeting the minimum
commitments set forth in Section 3.1,
the Fuji shall not have the right to elect to not renew this Agreement for the
following Calendar Year or (ii) this Agreement is sooner terminated as
expressly provided in this Article 9
or (iii) Heska fails to meet the minimum commitments set forth in Section 3.1 and Fuji elects not to renew this Agreement
pursuant to Section 9.1(i).  The Initial Term and all Extension Terms are
referred to herein as the “Term.”

 

9.2           Termination For Cause By Either
Party.  In addition to the rights of
the Parties to terminate this Agreement as provided hereinabove, either Party
may terminate this Agreement for cause upon written notice to the other Party
in the event the other Party: (a) appoints a receiver, executes an
assignment for the benefit of creditors or files or otherwise becomes subject
to bankruptcy or insolvency proceedings; or (b) materially breaches this
Agreement and fails to cure such breach within thirty (30) days after receipt
of written notice of breach from the non-breaching Party, as such cure period
may be extended for such additional period as the non-breaching Party
reasonably determines that the breaching Party is diligently pursuing a cure of

 

 

such
breach, such additional period not to exceed ninety (90) days, or (c) either
Party fails to comply with all applicable rules and regulations applicable
to the manufacture or sale of Products in the Territory in the Field.

 

9.3           By Heska.  Heska may terminate this Agreement upon ten (10) days
written notice to Fuji in the event that (i) the Launch Date fails to
occur on or before January 1, 2008 due to Fuji’s inability or
unwillingness to supply the Product, unless Heska and Fuji mutually agree in
writing to delay the Launch Date due to development delays or other reasons
within thirty (30) days after the Launch Date, or (ii) Fuji is unable to
supply the Product to meet Heska’s requirements (including delivery date) in
three (3) separate purchase orders issued pursuant to Section 3.5
during any Calendar Year on or after the Launch Date.

 

9.4           By Fuji.  Fuji may terminate this Agreement upon ten (10) days
written notice to Heska in the event that the Launch Date fails to occur on or
before January 1, 2008 due to Heska’s failure to order Product made
available by Fuji, unless Heska and Fuji mutually agree in writing to delay the
Launch Date due to development delays or other reasons after thirty (30) days
from the Launch Date.

 

9.5                                Effect of
Expiration or Termination.  Upon
expiration or termination of this Agreement:

 

(a)                                  The Parties
shall immediately cease the use of any Confidential Information of the other
Party, except as permitted in this Section 9.5.

 

(b)                                 Unless this
Agreement is terminated by Fuji for Heska’s breach or bankruptcy, (i) Fuji
shall honor all purchase orders accepted prior to the date of expiration or
termination, and (ii) Heska may continue to purchase from Fuji and Fuji
will continue to manufacture and sell to Heska, at Heska’s request, Heska’s
requirements for consumable Products, spare parts and associated products (“Post-Termination
Supply”) on a nonexclusive basis but otherwise on the terms set forth in this
Agreement for a period of up to five (5) years following the date of
expiration or termination; provided, however, that if Fuji decides to terminate
manufacturing and supplying of devices capable of performing chemical and
electrolyte analyses of biological fluids for the use in the Territory at any
time during the five year period, Fuji may terminate the Post-Termination
Supply by notifying to Heska in writing twelve (12) months prior to a scheduled
date of termination and Fuji shall discuss in good faith with Heska to agree
upon the terms and conditions of Heska’s last purchases (e.g. volume, delivery
schedule); and further provided that the corresponding purchase price for
Post-Termination Supply shall be reasonable, and if there is any other
distributor appointed in the Field and the Territory, the prices to Heska shall
not be higher than those charged to such distributor.  Notwithstanding anything in this Article 9 to the contrary, in the event that Fuji
continues to manufacture and supply devices capable of performing chemical and
electrolyte analyses of biological fluids in the Territory, whether inside or
outside of the Field, then Fuji may not elect to earlier terminate the
manufacture of Products pursuant to this Section 9.5(b).  Such consumable 

 

 

                                                Products, spare
parts and associated products be no higher than Fuji charges any other customer
in the Field and the Territory.

 

(c)                                  Heska shall
return to Fuji all promotional and sales training materials provided to Heska
by Fuji under this Agreement except as required to perform the activities set
forth in Section 9.5(b).

 

(d)                                 Each Party
shall return the other Party’s Confidential Information, except (i) as may
be required for each Party to exercise any post-termination rights hereunder
and (ii) for one (1) copy that may be retained in such Party’s
confidential legal files.

 

9.6           Termination of Manufacturing.  If Fuji decides to terminate manufacturing
and supplying of devices capable of performing chemical and electrolyte
analyses of biological fluids for the use in the Territory, Fuji may terminate
this Agreement by notifying to Heska in writing twelve (12) months prior to a
schedule date of termination; provided, however, Fuji shall not terminate
manufacturing of Products during the Initial Term provided in Section 9.1; and further provided that Fuji and Heska
shall discuss in good faith to agree upon the terms and conditions of Heska’s
last purchases (e.g. volume, delivery schedule) and Post-Termination
Supply.  Notwithstanding anything in this
Article 9 to the contrary, in the
event that Fuji continues to manufacture and supply devices capable of
performing chemical and electrolyte analyses of biological fluids for the use
in the Territory, whether inside or outside of the Field, the Fuji may not
elect to earlier terminate the manufacture of Products pursuant to this Section 9.5(b).

 

9.7           Survival.  The following Articles and Sections shall
survive termination of the Agreement:  Articles 1, 5, 6, 7, 8, (except Section 8.3) 9 and 10.
The provision of Section 8.3 shall survive for
three (3) years from the date of any expiration or termination of this
Agreement.   In addition, all provisions
that must survive in order for each Party to exercise the rights granted
pursuant to Section 9.5(b) shall
survive termination or expiration.

 

 

ARTICLE 10.  MISCELLANEOUS

 

10.1         Notices.  All written notices and other communications
between the Parties shall be in the English language and shall be deemed
effective on the date they are received by certified air mail or confirmed
facsimile addressed to the other Party at the address or facsimile number
stated below.

 

 

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

 

	
                  If to Fuji:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FUJIFILM
  Corporation

  	
   

  
	
   

  	
   

  	
  Attn:General
  Manager of Life Science Products Div.

  	
   

  
	
   

  	
   

  	
  26-30,
  Nishiazabu 2-chome Minato-ku,

  	
   

  
	
   

  	
   

  	
  Tokyo
  106-8620 Japan

  	
   

  
	
   

  	
   

  	
  Facsimile
  Number:        [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
                  With copy to:

  	
   

  	
  FUJIFILM
  Corporation

  	
   

  
	
   

  	
   

  	
  Attn:General
  Manager of Legal Div.

  	
   

  
	
   

  	
   

  	
  26-30,
  Nishiazabu 2-chome Minato-ku,

  	
   

  
	
   

  	
   

  	
  Tokyo
  106-8620 Japan

  	
   

  
	
   

  	
   

  	
  Facsimile
  Number:        [***]

  	
   

  
	
                  If to Heska:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Heska
  Corporation

  	
   

  
	
   

  	
   

  	
  Attn:
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
  3760
  Rocky Mountain Avenue

  	
   

  
	
   

  	
   

  	
  Loveland, CO 80538

  	
   

  
	
   

  	
   

  	
  Facsimile Number:        [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
                  With
  copy to:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Heska Corporation

  	
   

  
	
   

  	
   

  	
  Attn:
  Executive Vice President, Intellectual Property and

  	
   

  
	
   

  	
   

  	
  Business
  Development

  	
   

  
	
   

  	
   

  	
  3760
  Rocky Mountain Avenue

  	
   

  
	
   

  	
   

  	
  Loveland, CO 80538

  	
   

  
	
   

  	
   

  	
  Facsimile Number:        [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
                  With additional copy to:

  	
   

  	
   

  
	
   

  	
   

  	
  Osborn
  Maledon, P.A.

  	
   

  
	
   

  	
   

  	
  Attn:
  Jonathan Ariano, Esq

  	
  .

  
	
   

  	
   

  	
  2929
  North Central Ave.

  	
   

  
	
   

  	
   

  	
  Suite 2100

  	
   

  
	
   

  	
   

  	
  Phoenix,
  AZ 85012

  	
   

  
	
   

  	
   

  	
  Facsimile
  Number:        [***]

  	
   

  
						

 

10.2         Binding Effect/Assignment.  This Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their successors and
assigns.  Neither Party shall have the
right to assign any of its rights or obligations under this Agreement without
the prior written consent of the other Party; provided,
however, that with a written notice to the other Party, either Party may
assign this Agreement to an Affiliate of such Party or to a
successor-in-interest in the event of a merger, acquisition or sale of
substantially all of the such Party’s assets or stock.

 

 

10.3         Waivers.  Any waiver by either of the Parties hereto of
any rights arising from a breach of any covenants or conditions of this
Agreement shall not be construed as a continuing waiver of other breaches of
the same nature or other covenants or conditions of this Agreement.  Any failure by one of the Parties to assert
its rights for or upon any breach of this Agreement shall not be deemed to be a
waiver of such rights, nor shall such waiver be implied from the acceptance of
any payment.

 

10.4         Relationship of the Parties.   Nothing in this Agreement or any other
document or agreement between the Parties shall constitute or be deemed to
constitute a partnership or joint venture between the Parties.  The relationship between Heska and Fuji shall
be that of buyer and seller. No officer, agent or employee of one Party shall
under any circumstances be considered the agent, employee or representative of
the other Party.  Neither Party shall
have the right to enter into any contracts or binding commitments in the name
of or on behalf of the other Party in any respect whatsoever.

 

10.5         Force Majeure.  Except for Heska’s obligation to make timely
payment for the Products already shipped by Fuji, neither Party shall be liable
to the other Party or in default hereunder by reason of any delay or omission
caused by fire, flood, strike, lockout, civil or military authority,
insurrection, war, embargo, container or transportation shortage or delay of
suppliers due to such causes, and delivery dates shall be extended to the extent
of any delays resulting from the foregoing or similar causes.  In the event of an occurrence of an event of
force majeure the Party affected thereby shall give the other Party prompt
notice of the existence thereof, the causes thereof and an estimate of the
reasonably anticipated delay or nonperformance under this Agreement that may be
caused thereby, and such Party shall use reasonable commercial efforts and
discuss in good faith with the other Party to mitigate its effects.  In spite of such efforts and discussions, if
it is reasonably judged that a Party is not or is not expected to be able to
perform any material obligation under this Agreement due to an event of force
majeure for a period of ninety (90) days or more, either Party shall have the
right to terminate this Agreement upon written notice to the other Party.

 

10.6         Governing Law.  This Agreement shall in all respects be
governed by, and construed in accordance with, the internal laws (and not the
laws of conflicts) of the State of Colorado. 
The United Nations Convention on Contracts for the International Sale of
Goods (1980), as amended, is specifically excluded from application to this
Agreement.

 

10.7         Alternative Dispute Resolution.  Any and all disputes, controversies, or
claims arising out of or relating to this Agreement, or the breach,
termination, or invalidity thereof, shall be finally settled pursuant to the
dispute resolution procedures set forth on Exhibit 10.7.

 

10.8         Entire Agreement.  This Agreement, including the exhibits,
constitutes the entire understanding of the Parties with respect to the subject
matter hereof, and supersedes all prior or contemporaneous writings or
discussions, including but not limited to the Prior Agreement.  Except as otherwise expressly provided, no agreement
varying or extending the terms of this Agreement shall be binding on either
Party unless in a writing signed by an authorized representative of each Party.

 

 

10.9         Headings.  The headings of the paragraphs and
subparagraphs of this Agreement have been added for the convenience of the parties
and shall not be deemed a part hereof.

 

10.10       Counterparts.  This Agreement may be executed in any number
of counterparts, all of which together shall constitute a single
Agreement.  In proving this Agreement, it
shall be necessary to produce or account for more than one counterpart signed
by the Party with respect to whom proof is sought.

 

(Remainder of Page intentionally left blank)

 

 

 

 

IN WITNESS WHEREOF, each Party has caused
this Clinical Chemistry Analyzer Agreement to be executed on its behalf by its
duly authorized officer as of the Effective Date.

 

 

	
   

  	
   

  
	
   

  	
  FUJIFILM
  Corporation

  	
   

  	
  Heska
  Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Yuzo Toda

  	
  By:

  	
  /s/
  Joseph H. Ritter

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
  Director,
  Corporate Vice President,

  	
  Its:

  	
  Executive
  Vice President,

  
	
   

  	
  General
  Manager of Life Science

  	
   

  	
  Global
  Business Operations

  
	
   

  	
  Products
  Div.

  	
   

  	
   

  

 

	
  Date:

  	
  January 30,
  2007

  	
  Date:

  	
  January 30,
  2007

  

 

 

LIST OF EXHIBITS

 

 

	
  Exhibit Number

  	
   

  	
  Exhibit Name

  	
   

  
	
  1.13

  	
   

  	
  Products and Purchase
  Prices

  	
   

  
	
  3.3

  	
   

  	
  Countries to which the right of first refusal Under Section 3.3
  will not apply

  	
   

  
	
  3.10

  	
   

  	
  Bank Wire Transfer
  Information

  	
   

  
	
  4.3

  	
   

  	
  Training

  	
   

  
	
  6.2

  	
   

  	
  End User Warranties

  	
   

  
	
  9.7

  	
   

  	
  Alternative Dispute
  Resolution

  	
   

  

 

 

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

 

Exhibit 1.13

PRODUCTS AND PURCHASE PRICES

 

Products:

 

                Fuji’s clinical chemistry
analyzers (e.g., FDC4000i) (“Analyzers”), consumables (e.g., general chemistry
slides, [***] slides, electrolyte slides, [***] slides, calibrator and control
solutions, heparin, other fluids, tips, cups, tubes, other consumable products)
for use with Analyzers (“Consumables”), and any improvements to Analyzers or
Consumables.

 

Analyzers:

 

List Price:

 

[***]
per Analyzer [***].  Such price includes
any upgrades (software or hardware) and retrofits.

 

Discounts:

 

Development discount:                            [***]

 

Introductory discount:                               [***]

 

Loaner discounts:                                                        [***]

 

Field unit discounts:                                           [***]

 

Consumables:

List Price:                                           See Exhibit 1.13(A)

 

Spare Parts:

To be agreed upon by September 30, 2007

 

 

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

 

Exhibit 1.13(A)

 

	
  HESKA
  Product Name

  	
   

  	
  HESKA
  Abbreviated

  Product Name

  	
   

  	
  Quantity
  and 

  Package

  	
   

  	
  Fuji
  Abbreviated 

  Product Name

  	
   

  	
  Fuji
  Product Name

  	
   

  	
  Price
  in 

  US$

  
	
  Albumin

  	
   

  	
  ALB

  	
   

  	
  24 Slides/box

  	
   

  	
  ALB-P

  	
   

  	
  FUJI DRI-CHEM SLIDE
  ALB-P

  	
   

  	
  [***]

  
	
  Alkaline Phosphatase

  	
   

  	
  ALP

  	
   

  	
  24 Slides/box

  	
   

  	
  ALP-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  ALP-P III

  	
   

  	
  [***]

  
	
  ALT (GPT)

  	
   

  	
  ALT

  	
   

  	
  24 Slides/box

  	
   

  	
  GPT/ALT-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  GPT/ALT-P III

  	
   

  	
  [***]

  
	
  Amylase

  	
   

  	
  AMY

  	
   

  	
  24 Slides/box

  	
   

  	
  AMYL-P

  	
   

  	
  FUJI DRI-CHEM SLIDE
  AMYL-P

  	
   

  	
  [***]

  
	
  AST (GOT)

  	
   

  	
  AST

  	
   

  	
  24 Slides/box

  	
   

  	
  GOT/AST-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  GOT/AST-P III

  	
   

  	
  [***]

  
	
  BUN

  	
   

  	
  BUN

  	
   

  	
  24 Slides/box

  	
   

  	
  BUN-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  BUN-P III

  	
   

  	
  [***]

  
	
  Calcium

  	
   

  	
  CA

  	
   

  	
  24 Slides/box

  	
   

  	
  Ca-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE Ca-P
  III

  	
   

  	
  [***]

  
	
  Total Cholesterol

  	
   

  	
  CHOL

  	
   

  	
  24 Slides/box

  	
   

  	
  TCHO-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  TCHO-P III

  	
   

  	
  [***]

  
	
  CK

  	
   

  	
  CK

  	
   

  	
  24 Slides/box

  	
   

  	
  CPK-P IIII

  	
   

  	
  FUJI DRI-CHEM SLIDE
  CPK-P IIII

  	
   

  	
  [***]

  
	
  Creatinine

  	
   

  	
  CREA

  	
   

  	
  24 Slides/box

  	
   

  	
  CRE-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  CRE-P III

  	
   

  	
  [***]

  
	
  GGT

  	
   

  	
  GGT

  	
   

  	
  24 Slides/box

  	
   

  	
  GGT-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  GGT-P III

  	
   

  	
  [***]

  
	
  Glucose

  	
   

  	
  GLU

  	
   

  	
  24 Slides/box

  	
   

  	
  GLU-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE
  GLU-P III

  	
   

  	
  [***]

  
	
  Magnesium

  	
   

  	
  MG

  	
   

  	
  24 Slides/box

  	
   

  	
  Mg-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE Mg-P
  III

  	
   

  	
  [***]

  
	
  Phosphorous

  	
   

  	
  PHOS

  	
   

  	
  24 Slides/box

  	
   

  	
  IP-P

  	
   

  	
  FUJI DRI-CHEM SLIDE IP-P

  	
   

  	
  [***]

  
	
  Total Bilirubin

  	
   

  	
  TBILI

  	
   

  	
  24 Slides/box

  	
   

  	
  TBIL-P II

  	
   

  	
  FUJI DRI-CHEM SLIDE
  TBIL-P II

  	
   

  	
  [***]

  
	
  Total Protein

  	
   

  	
  TP

  	
   

  	
  24 Slides/box

  	
   

  	
  TP-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE TP-P
  III

  	
   

  	
  [***]

  
	
  Triglycerides

  	
   

  	
  TRIG

  	
   

  	
  24 Slides/box

  	
   

  	
  TG-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE TG-P
  III

  	
   

  	
  [***]

  
	
  Uric Acid

  	
   

  	
  UA

  	
   

  	
  24 Slides/box

  	
   

  	
  UA-P III

  	
   

  	
  FUJI DRI-CHEM SLIDE UA-P
  III

  	
   

  	
  [***]

  
	
  Electrolytes

  	
   

  	
  LYTES

  	
   

  	
  24 Slides/box

  	
   

  	
  Na-K-Cl

  	
   

  	
  FUJI DRI-CHEM SLIDE
  Na-K-Cl

  	
   

  	
  [***]

  
	
  Pre-Surgical
  Panel (ALP, ALT,
  BUN, CREA, GLU, TP)

  	
   

  	
  Pre-Surgical Panel

  	
   

  	
  24 Slides/box (4
  Panels/box)

  	
   

  	
  TBA

  	
   

  	
  TBA

  	
   

  	
  [***]

  
	
  Kidney
  Panel (ALB, BUN,
  CA, CREA, PHOS, TP)

  	
   

  	
  Kidney Panel

  	
   

  	
  24 Slides/box (4
  Panels/box)

  	
   

  	
  TBA

  	
   

  	
  TBA

  	
   

  	
  [***]

  
	
  Liver
  Panel (ALB, ALP,
  ALT, GGT, GLU, T-Bili)

  	
   

  	
  Liver Panel

  	
   

  	
  24 Slides/box (4
  Panels/box)

  	
   

  	
  TBA

  	
   

  	
  TBA

  	
   

  	
  [***]

  
	
  General
  Health Panel -
  Pre Surgical Panel (ALP, ALT, BUN, CREA, GLU, TP) plus T-BILI, ALB, PHOS, CA,
  AMY, CHOL

  	
   

  	
  General Health Panel

  	
   

  	
  24 Slides/box (2
  Panels/box)

  	
   

  	
  TBA

  	
   

  	
  TBA

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrolyte Control

  	
   

  	
  LyteControl

  	
   

  	
  10 amplues/box (1ml/ampule)

  	
   

  	
  QE

  	
   

  	
  FUJI DRI-CHEM
  ELECTROLYTE CONTROL QE

  	
   

  	
  [***]

  
	
  Chemistry Control

  	
   

  	
  ChemControl

  	
   

  	
  2 bottles/box
  (3ml/bottle)

  	
   

  	
  QN

  	
   

  	
  FUJI DRI-CHEM CONTROL QN

  	
   

  	
  [***]

  
	
  AutoTips

  	
   

  	
  AutoTips

  	
   

  	
  480 pieces/box

  	
   

  	
  AUTO TIPS

  	
   

  	
  FUJI DRI-CHEM AUTO TIPS

  	
   

  	
  [***]

  
	
  Mixing Cups

  	
   

  	
  Mixing Cups

  	
   

  	
  100 pieces/box

  	
   

  	
  MIX CUPS S

  	
   

  	
  FUJI DRI-CHEM MIXING
  CUPS S

  	
   

  	
  [***]

  
	
  Plain Tubes 0.5 ml

  	
   

  	
  Plain Tubes 0.5 ml

  	
   

  	
  500 pieces/box

  	
   

  	
  PLAIN TUBE 0.5

  	
   

  	
  FUJI PLAIN TUBE 0.5

  	
   

  	
  [***]

  

 

 

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

 

Exhibit 4.10

BANK WIRE TRANSFER INFORMATION

 

 

	
  Bank
  Name:

  	
  THE
  BANK OF TOKYO-MITSUBISHI UFJ, LTD

  
	
  Branch:

  	
  HEAD
  OFFICE

  
	
  Bank
  Address:

  	
  2-7-1,
  MARUNOUCHI, CHIYODA-KU, TOKYO JAPAN

  
	
  Swift
  Code:

  	
  BOTKJPJT

  
	
  Official
  Name on the account:

  	
  FUJIFILM
  Corporation

  
	
  Account
  No.:

  	
  [***]

  

 

 

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

 

Exhibit 3.3

 

Countries to which the right of first refusal under Section 3.3
will not apply

 

 

[***]

 

 

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

 

Exhibit 5.3

TRAINING

 

 

Fuji
shall provide training at a time mutually agreed between Heska and Fuji, but prior
to the Launch Date, at Fuji’s expenses of any costs associated with Fuji’s
employees’ airfare, hotel, and other per diem expenses and at Heska’s
facilities.  Such training shall include
at least the following items:

 

[***]

 

 

Additionally,
Fuji shall provide additional training (i) whenever there are significant
changes made to the Analyzer and (ii) at least once every 2 years at Heska’s
facilities.

 

Should
Heska request any training at Fuji’s facility, Fuji shall provide such training
at Fuji’s expense; provided however that Heska shall pay any costs associated
with Heska employees’ airfare, hotel, and other per diem expenses.

 

 

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

 

Exhibit 7.2

END USER WARRANTIES

 

 

Analyzers:             [***],
such warranty to begin thirty (30) days after receipt of Analyzer by Heska,
assuming Heska has accepted such Analyzer. 

 

 

Exhibit 10.7

ALTERNATIVE DISPUTE RESOLUTION

 

 

The parties recognize that from time to time a dispute
may arise relating to either Party’s rights or obligations under this Agreement
(a “Dispute”). The Parties agree that any such dispute shall be resolved
by the provisions set forth in this Exhibit, the result of which shall be
binding upon the parties.

 

To
begin the process, a Party first must send written notice to the other Party in
accordance with the terms of the Agreement describing the dispute and requesting
attempted resolution by good faith negotiations between their respective
president or principal executive officer (or their designees) of the affected
subsidiaries, divisions, or business units within twenty-eight (28) days after
such notice is received. If the matter has not been resolved within
twenty-eight (28) days of the notice of dispute, or if the parties fail to meet
within such twenty-eight (28) days, either Party may initiate an ADR proceeding
as provided herein. The parties shall have the right to be represented by
counsel in such a proceeding.

 

Subject
to the foregoing, a Party may seek arbitration of an unresolved Dispute in
Denver, Co, in accordance with the Rules of the American Arbitration
Association (“AAA”) governing commercial transactions.  The arbitration tribunal shall consist of
three (3) arbitrators.  The Party
initiating arbitration shall nominate one arbitrator (who shall be
knowledgeable in the industry but not be affiliated with such Party) in the
request for arbitration and the other Party shall nominate a second arbitrator
(who shall be knowledgeable in the industry but not be affiliated with such
Party) in the answer thereto.  The two
arbitrators so named will then jointly appoint the third arbitrator (who shall
be knowledgeable in the industry but shall not be affiliated with either Party)
as chairman of the arbitration tribunal. 
If either Party fails to nominate its arbitrator, or if the arbitrators
named by the parties fail to agree on the person to be named as chairman within
sixty (60) days, the office of the AAA in Denver, CO shall make the necessary
appointments of an arbitrator or the chairman of the arbitration tribunal.  The award of the arbitration tribunal shall
be final and judgment upon such an award may be entered in any competent court
or application may be made to any competent court for judicial acceptance of
such an award and an order of enforcement.

 

Notwithstanding
anything herein to the contrary, nothing in this Exhibit shall preclude
any Party from seeking interim or provisional relief, in the form of a
temporary restraining order, preliminary injunction or other interim equitable
relief concerning the Dispute, either prior to or during the Mediation if
necessary to protect the interests of such Party, or to obtain specific
performance of obligations under this Agreement.  Further, this Section shall be
specifically enforceable.  Bringing or
defending an action for such relief shall not constitute waiver of the right or
avoid the obligation to mediate or arbitrate contained in this Agreement.

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