Document:

Exhibit 10.4

 

* * –
CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

COMPANION ANIMAL SELECT BRANDS DISTRIBUTION AGREEMENT

 

This
Agreement dated and effective as of January 1, 2009 is made by and between
Pfizer Inc., 235 East 42nd
Street, New York, NY 10017 (hereinafter, “PFIZER”) and MWI
Veterinary Supply, 651 South Stratford Drive, Suite 100, Meridian, Idaho
83642 (hereinafter, “MWI”).

 

Definitions:

“Products”:
Zeniquin, Temaril-P, Antirobe, Doxirobe, Medrol, Dexdomitor, and Antisedan

 

1.             PFIZER hereby
appoints MWI, and MWI hereby accepts appointment, as a contract distributor for
PFIZER’s Products, to purchase from PFIZER and to resell for MWI’s own account
as a distributor, subject to the following terms and conditions.

 

2.             MWI recognizes
and agrees to the following:

(a)           PFIZER has elected to work
with a select group of distributors that are committed to maximizing the sale
of the Products and to working closely with PFIZER to identify market
opportunities for both companies. The intent of this Agreement is to attain
that goal;

(b)           PFIZER intends to utilize this
group of distributors to sell the Products to veterinarians who have and
maintain a veterinary/client/patient relationship and who prescribe products
for dogs or cats within that relationship, and that PFIZER has, and may in the
future, run promotions and other activities that would be seriously prejudiced
if MWI resells the Products to non-veterinarians, other distributors, internet
pharmacies, human pharmacies or non-employee agents or through brokers.

 

3.             Accordingly, MWI
shall:

(a)           use its
reasonable best efforts to sell the Products by focusing its efforts at
reselling to veterinarians only with a client patient relationship.

(b)           maintain a
full-time outside and inside sales force that will personally and actively
solicit sales of the Products and to pay such sales representatives reasonable
commission;

(c)           store and handle
its inventory of Products under conditions that will ensure that the Product
retains its potency, purity, quality, and identity;

(d)           cooperate fully
with PFIZER by actively participating in such strategy sessions as PFIZER
reasonably may require, for the purpose of developing programs to increase use
of the Products; and to cooperate fully with PFIZER in implementing all
promotions and sales campaigns for the Products;

(e)           allow PFIZER’s
representatives to attend and actively participate in meetings of MWI’s sales
representatives;

(f)            MWI agrees that
credit limits established by PFIZER shall be subject to change 

 

 

by
PFIZER in its sole discretion and that no shipments will be made to MWI in
excess of the established credit limits. MWI will make payment to PFIZER for
all Products shipped /**/;

 

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(g)           take no action,
-whether or not identified above, that would harm the goodwill of  the Products;

(h)           MWI shall
immediately notify PFIZER in the event MWI obtains information indicating that
the Products may have to be recalled either by virtue of applicable law or
regulation or good business judgment. PFIZER shall control all efforts
necessary to conduct any such recall. MWI shall cooperate with PFIZER and MWI
agrees to maintain adequate records to conduct such recall, including the name,
address and Product purchases of all purchasers of PFIZER Products;

(i)            MWI shall not,
under any circumstances, be liable for special, collateral, incidental or
consequential damages, and PFIZER’s sole remedy for any such damages shall be
in accordance with Paragraph 7(e).

 

4.             PFIZER shall:

(a)           sell the Products
to MWI at the prices in effect in the then current published PFIZER Animal
Health Ethical Distribution Price Memo (hereinafter, “Price List”). PFIZER also
shall permit MWI to participate in the distributor incentive programs offered
by PFIZER, in accordance with the terms of such programs. PFIZER shall have the
unrestricted right to revise the prices, terms and conditions of the Price
List, and to add or delete Products or package sizes, without advance notice to
MWI, and the revisions shall be effective on all orders submitted after the
effective date of the price revisions. In all cases of orders received for
other than immediate shipment, the price for the Products shall be that in
effect at the time of shipment;

(b)           retain sole
responsibility for the advertising and promotion of the Products and
collaborate with MWI in the development of activities appropriate for ethical
distribution regarding the Products;

(c)           compensate MWI in
accordance with Exhibits A and B attached hereto. PFIZER shall have the right
to audit MWI sales data to confirm appropriate payment in accordance with
Exhibits A and B;

(d)           allow MWI credit on
prepaid returns in accordance with PFIZER’s Outdated Products Policy which is
in effect at the time;

(e)           If MWI has more
than one location then MWI must combine purchases of all locations to determine
attainment level for incentives. In the event that MWI acquires or combines
with another PFIZER agreement holder, the purchase objectives will be adjusted
accordingly for the purpose of determining incentives earned;

(f)            Direct purchase
from PFIZER will be used to determine the level of purchases achieved. Any
discrepancies must be documented by the Marketing Agreement holder using copies
of PFIZER invoices.

 

5.             Nothing in this
Agreement shall be deemed to limit PFIZER’s ability to sell Products to any
other party.

 

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6.             All purchases by
MWI pursuant to this Agreement shall be in accordance with the terms of PFIZER’s
Pricing and Shipping Policies, as may be amended by PFIZER from time to time.
Unless the parties agree otherwise, shipments shall be made to either MWI’s
central warehouse point or to branch offices at MWI’s direction.

 

7.             The following
standard conditions shall apply to all sales under this Agreement:

(a)           MWI shall
cooperate fully with PFIZER in participating fully in the Animal Health
Institute Electronic Data Interchange (hereinafter, “AHI EDI”) for the
reporting of sales and inventory data on a daily basis. The data to be reported
shall be as described in the AHI EDI Transaction sets.

(b)           all orders are
subject to acceptance by PFIZER. Title to the goods shall pass to MWI once they
have been properly delivered to the address designated by MWI.

(c)           any tax or other
charge upon the sale and/or shipment of the goods now or hereafter imposed by
federal, state or municipal authorities shall be paid by MWI. In the event that
the price of any article includes transportation charges, any increase or
decrease in transportation charges shall be for MWI’s account;

(d)           EXCEPT AS SET
FORTH IN THIS AGREEMENT, OR IN THE LABELING OF THE PRODUCTS SOLD HEREUNDER, PFIZER
MAKES NO EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE PRODUCTS;

(e)           PFIZER shall
defend and indemnify MWI from all claims resulting from any breach by PFIZER of
the warranties set forth in this paragraph 7 and specifically any claim that
the Products, as sold by PFIZER, were defective. In the event PFIZER is found
by any court of competent jurisdiction to be liable for any claim based in
products liability, then PFIZER shall reimburse MWI’s reasonable legal fees
incurred in the course of cooperating with PFIZER’s defense. To be covered by
this defense and indemnity, MWI must: promptly notify PFIZER of any such claim;
allow PFIZER to fully control the defense and/or resolution of the claim; and
cooperate fully with PFIZER in the matter. This defense, indemnity and payment
for legal fees shall not apply to claims alleging: MWI alteration, negligent
handling or improper storage of the Products; sale of outdated Products; sale
or recommendation of the Products for uses or in a manner not set forth in the
labeling supplied by PFIZER; or sale of the Products after receipt of notice
from PFIZER that such sales should be halted;

(f)            in no event shall
PFIZER be liable to MWI for special, collateral, incidental, or consequential
damages in connection with or arising out of the purchase, resale, or use of
the Products. Except as provided under subparagraph 7(e), above, total damages
recoverable against PFIZER by MWI shall be exclusively limited to the purchase
price of the Products with respect to which damages are claimed;

 

4

 

(g)           failure of PFIZER
to make or of MWI to take, when due, any delivery (or portion thereof) pursuant
to an order hereunder, if occasioned by any circumstance or condition beyond
the control of the party so failing, shall not subject the failing party to any
liability to the other and, at the option of either party, that order or
portion thereof not delivered may be canceled;

(h)           acceptance of MWI’s
order by PFIZER is expressly made conditional upon MWI’s acceptance of the
conditions of sale as set forth herein, and the prices, terms and conditions of
the Price List then in effect, notwithstanding acknowledgment or receipt of MWI’s
purchase order containing additional or different provisions, or conflicting
oral representations by any agent of PFIZER;

(i)            in no event shall
MWI be liable to PFIZER for special, collateral, incidental, or consequential
damages in connection with or arising out of the purchase, resale, or use of
the Products.

 

8.             MWI shall not
delegate its duty of performance or assign its obligations under this Agreement
without the prior written consent of PFIZER.

 

9.             This Agreement
shall not be binding upon PFIZER until it is approved by PFIZER at its New
York, New York headquarters.

 

10.           This Agreement
shall be effective as of the date first written above and shall continue in
force until December 31, 2010 (hereinafter, “Contract Term”). For the
purpose of calculating the sales out rebates set forth in Exhibit A and
the Custom Marketing Program funds set forth in Exhibit B, the Contract
Term will be divided into two one-year terms as follows: January 1, 2009
to December 31, 2009 (hereinafter, “Contract Year 2009”) and January 1,
2010 to December 31, 2010 (hereinafter, “Contract Year 2010”). PFIZER may
terminate this agreement prior to the expiration date with or without cause,
upon thirty (30) days written notice to MWI. Either party may terminate this
Agreement immediately upon written notice, in the event of a material breach by
the other party. Upon any termination of this Agreement for any reason prior to
the expiration date PFIZER shall have the right to buy back from MWI all
inventory of the Products owned by MWI at the time of termination at a price
equal to MWI’s purchase price from PFIZER of such inventory.

 

11.           MWI and PFIZER
agree that, under the specific circumstances delineated herein, PFIZER, at
PFIZER’s sole discretion may recoup the sums outstanding to it from MWI against
those sums which may become due from PFIZER to MWI, in that the obligations
arise from mutual transactions.

 

5

 

A.            The specific
circumstances which will enable PFIZER to initiate recoupment are:

i.              MWI becomes
insolvent which shall be defined as:

(a)          the sum of MWI’s
debts is greater than all of MW’s property  (“Balance Sheet Test”); or

(b)         MWI is generally
not paying its debts as they come due; or

(c)          MWI has failed to
act in good faith for a period in excess of six (6) months to resolve any
outstanding invoice or purchase order issues  or reconciliations.

ii.                                       MWI commences a
liquidation of its operations by means of a sale of its  assets in their entirety or
piecemeal.

iii.                                    MWI ceases its
business operations whether or not such cessation is  voluntary or involuntary.

iv.                                   MWI files a
proceeding pursuant to the U.S. Bankruptcy Code or any state court proceeding,
including an Assignment for the Benefit of Creditors.

 

12.           MWI and PFIZER acknowledge
that in the performance of their duties hereunder MWI and PFIZER may obtain
access to “Confidential Information” (as defined below) of each other. MWI and
PFIZER agree that during the term of this Agreement and for a period of three (3) years
after the termination of this Agreement, unless specifically permitted in writing
by the other party, to (a) retain in confidence and not disclose to any
third party and (b) use only for the purpose of carrying out their duties
hereunder, any such Confidential Information. As used herein the term “Confidential
Information” means any information, or data, whether of a business or
scientific nature and whether in written, oral or tangible form, relating to
PFIZER’s and MWI’s business or potential business or its research and
development activities, not generally available to or known to the public, and
not otherwise known to the receiving party, that is disclosed to or learned by
the other party pursuant hereto. Upon completion of the work provided for
hereunder or other termination of this Agreement each party will return to the
other party any documents, or copies thereof, or any product samples,
containing or constituting Confidential Information disclosed to or generated
by either party in connection with this Agreement.

 

13.           This Agreement
shall be governed by the laws of the State of New York applicable to contracts
to be fully performed therein.

 

6

 

14.           This Agreement and documents
referred to herein embody the entire understanding between the parties hereto,
will supersede prior agreements relating to the Products, and may be modified
only in writing and signed by the parties to be bound. No activities conducted
pursuant to this Agreement
or related thereto, including but not limited to the future planning activities
of the parties, shall be deemed to give rise to any obligations on the part of
either party other than as expressly provided for herein.

 

IN
WITNESS WHEREOF, intending to be legally bound, the parties have executed this
Agreement.

 

	
  MWI
  Veterinary Supply

  	
   

  	
  Pfizer
  Inc.

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ Jim Cleary

  	
   

  	
  BY: 

  	
  /s/ Clinton Lewis

  
	
   

  	
   

  	
   

  	
  Clinton Lewis

  
	
  Print Name:

  	
  Jim Cleary

  	
   

  	
   

  	
  President,
  U.S. Operations

  
	
   

  	
   

  	
   

  	
  Pfizer
  Animal Health

  
	
  Title:

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: 

  	
  Jan. 23, 2009

  	
   

  	
  Date: 

  	
  2/5/09

  
									

 

7Exhibit 10.(a)

 

[Sutherland
Asbill and Brennan LLP Letterhead]

 

      STEPHEN E. ROTH

   DIRECT LINE: 202.383.0158

Internet:
steve.roth@sutherland.com

 

April 24, 2009

 

Board of Directors

Protective Life and Annuity Insurance Company

2801 Highway 201 South

Birmingham, Alabama 35223

 

Directors:

 

We hereby consent to the reference to our
name under the caption “Legal Matters” in the statement of additional
information filed as part of post-effective amendment number 3 to the
registration statement on Form N-4 (File No. 333-146508) filed by Protective Life and Annuity Insurance Company
and Variable Annuity Account A of Protective Life with the Securities and
Exchange Commission.  In giving this
consent, we do not admit that we are in the category of persons whose consent
is required under Section 7 of the Securities Act of 1933.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
  SUTHERLAND ASBILL & BRENNAN LLP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen E. Roth

  
	
   

  	
   

  	
  Stephen E. Roth

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