Document:

Exhibit 10.1

Exhibit 10.1

Aeropostale, Inc.              
CHANGE OF CONTROL SEVERANCE PLAN

1.Term of Plan; General.  This Plan shall become effective on the Effective Date and remain in effect until the second anniversary of a Change of Control; provided, however, that Company shall in all events remain liable to provide any amounts or benefits to which a Participant (as hereinafter defined) became entitled hereunder prior to such second anniversary.  For the sake of clarity, no benefits shall be provided hereunder in respect of a Participant’s termination of employment for any reason prior to the Effective Date.  Capitalized terms not otherwise defined shall have the meanings set forth on Attachment A hereto.

2.Participants Covered.  This Plan shall apply to Participants who are employed by the Employer immediately prior to a Change of Control.  A “Participant” shall mean any employee of the Company at the Vice President level or above who is not a party to an employment agreement with the Company and any additional employee of the Employer designated pursuant to Section 3.

3.Selection of Additional Participants.  The Compensation Committee (the “Committee”) of the Company’s Board of Directors (the “Board”) may designate those additional employees of the Employer who shall be considered to be Participants hereunder through a formal designation letter (the “Designation Letter”) specifying the terms and conditions of the employee’s participation, subject to, in all cases, the terms and conditions of the Plan.    

4.Compensation Upon Termination.  The Participant shall be entitled to the severance payments and benefits provided in this Section 4 hereof in the event the Participant’s employment with all Employers is terminated during the applicable Protection Period by an Employer without Cause or by the Participant for Good Reason (a “Qualifying Termination”).  Notwithstanding the foregoing, the Participant shall not be entitled to severance payments and benefits in the event of a termination of employment due to the Participant’s voluntary termination without Good Reason, the Company’s termination of the Participant for Cause or on account of the Participant’s death or Disability.  Upon a Participant’s Qualifying Termination during the applicable Protection Period, each Participant shall be entitled to the payments and benefits described in subsections (a) through (d) (with the payments and benefits described in subsection (a) and (c) only, collectively referred to as, the “Severance Benefits”).

a.Severance Payment.  Subject to Sections 4(g), 4(h) and 12, a Participant shall receive a single cash lump sum severance payment equal to the sum of the amount(s) set forth on Attachment B attached hereto and made a part hereof based on Participant’s level immediately prior to the Change of Control. Payment shall be paid on the sixtieth (60th) day following the Participant’s Termination Date. 
 
b.Equity and Other Plans.  Any unvested restricted shares of Company common stock, unvested performance shares of Company common stock and unvested stock options held by a Participant shall be treated as set forth in the Company’s Second Amended and Restated 2002 Long Term Incentive Plan (the “LTIP”), any successor to the LTIP and any applicable plan or grant document.  Any amounts in a Participant’s Long Term Incentive Deferred Compensation Plan 

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and/or Supplementary Executive Retirement Plan account, as applicable, shall be treated as set forth in the applicable plan document. 

c.Earned but Unpaid Annual Incentive.  Subject to Section 4(h), a Participant shall receive any earned but unpaid Annual Incentive (based on actual achievement of performance criteria) for the most recently completed measuring period occurring immediately prior to the Participant’s Termination Date. Any amount payable under Section 4(c) shall be paid in the form and at the time any such Annual Incentive payments are paid to other eligible employees in such Annual Incentive plan.
  
d.Additional Payments.  In addition to the Severance Benefits and any amounts payable under Section 4(b), a Participant shall receive the following additional payments: (i) any accrued but unpaid Base Salary through the Termination Date; and (ii) an amount, if any, equal to any accrued and unused paid time off (pto) days in full satisfaction of the Participant’s rights thereto.  Any amounts payable under Sections 4(d)(i) and (ii) shall be paid in a lump sum promptly (but in any event within seven (7) days) after the Participant’s Termination Date. 

e.Withholding.  Payments and benefits provided pursuant to this Section 4 shall be subject only to any applicable payroll and other taxes required to be withheld.

f.No Mitigation.  The Participant shall not be required to mitigate the amount of any payment provided for in this Plan by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Participant in any subsequent employment.  The amounts payable hereunder shall not be subject to setoff, counterclaim, recoupment, defense or other right which the Company or any of its affiliates may have against the Participant.  In the event of the Participant’s breach of any provision hereunder, including without limitation, Section 4(h) and any provision in the release contemplated under Section 4(h) (other than as it applies to a release of claims under the Age Discrimination in Employment Act, as amended) hereof, the Company shall be entitled to recover any payments previously made to the Participant hereunder.  Severance Benefits shall be reduced (offset) by any amounts payable under any statutory entitlement (including notice of termination, termination pay and/or severance pay) of the Participant upon a termination of employment, including, without limitation, any payments related to an actual or potential liability under the Worker Adjustment and Retraining Notification Act (WARN) or similar state or local law.

g.Effect of Severance Payments.  In the event that a Participant is entitled to Severance Benefits under this Plan and/or severance payments under any other severance plan, arrangement or agreement with the Employer, the Severance Benefits payable to a Participant hereunder shall be reduced (offset) by the severance payments provided to such Participant under any other severance plan, arrangement or agreement in a manner intended to comply with Section 409A of the Code, if applicable.

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h.Release Required.  The Severance Benefits shall be conditioned upon the Participant’s execution and, to the extent applicable, non-revocation, within sixty (60) days following the effective date of termination, of a release in the form attached as Exhibit A hereto containing,  among other things, a non-competition covenant (but only with such changes thereon as are legally necessary at the time of execution to make it enforceable).  The Company shall provide the release to the Participant within seven (7) days following the Participant’s Termination Date.  The Participant will be required to sign the release within twenty-one (21) or forty-five (45) days (as applicable) after the date it is provided to him or her and, if Participant is over 40 years of age, not revoke it within the seven (7) day period following the date on which it is signed. 

5.Notices.  Termination of the Participant by the Company for any reason shall be made by delivery to the Participant a written notice specifying the basis for such termination (“Notice of Termination”).  For the purposes of this Plan, notices and all other communications provided for in the Plan shall be in writing and shall be deemed to have been duly given when personally delivered, delivered by a nationally recognized overnight delivery service, or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each party to the other, provided that all notices to the Company shall be directed to the attention of the Senior Vice President and General Counsel with a copy to the Senior Vice President of Human Resources of the Company.  All notices and communications shall be deemed to have been received on the date of delivery thereof or on the third (3rd) business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.

6.Amendment and Termination.  This Plan may be amended at any time prior to the applicable Protection Period, provided that in no event shall any amendment be made at any time after the Effective Date that adversely impacts a Participants’ rights hereunder.  This Plan may not be amended or terminated on or after the applicable Protection Period with respect to any Participant unless such Participant provides advance written consent to any such amendment or termination.

7.Non-exclusivity of Rights.  Nothing in this Plan shall prevent or limit the Participant’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company or any of its subsidiaries and for which the Participant may qualify, nor shall anything herein limit or reduce such rights as the Participant may have under any agreements with the Company or any of its subsidiaries.  Amounts which are vested benefits or which the Participant is otherwise entitled to receive under any plan or program of the Company or any of its subsidiaries shall be payable in accordance with such plan or program, except as explicitly modified by this Plan.

8.Joint and Several Liability.  Each entity included in the definition of “Employer” and any successors or assigns shall be jointly and severally liable with the Company under this Plan.

9.Governing Law.  This Plan shall be governed by and construed and enforced in accordance with the laws of the State of New York without giving effect to the conflict of law principles thereof.  For purposes of jurisdiction and venue, the Company and each Employer hereby consents to jurisdiction and venue in any action, suit or proceeding in any court of competent jurisdiction in any state in which the Participant resides at the commencement of such action, suit or proceeding and waives any objection, challenge or dispute as to such jurisdiction or venue being proper.

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10.Successors and Assigns.  This Plan shall be binding upon and shall inure to the benefit of the Company, its successors and assigns, and the Company shall require any successor or assign to expressly assume and agree to maintain this Plan and to perform under this Plan to the same extent that the Company would be required to perform under the Plan if no such succession or assignment had taken place.  The term “Company” as used herein shall include such successors and assigns.

11.Severability.  The provisions of this Plan shall be deemed severable, and the invalidity or unenforceability of any provision hereof shall not affect the validity or enforceability of the other provisions hereof.

12.Section 409A.  

a.General.  Although the Company makes no guarantee with respect to the tax treatment of payments hereunder and shall not be responsible in any event with regard to non-compliance with Code Section 409A, the Plan is intended to either comply with, or be exempt from, the requirements of Code Section 409A and shall be limited, construed and interpreted in accordance with such intent.  Notwithstanding the foregoing, in no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on a Participant by Code Section 409A or any damages for failing to comply with Code Section 409A.

b.Separation from Service; Specified Employees.  Solely to the extent required by Section 409A of the Code, a termination of employment shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of the Plan, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If a Participant is deemed on the Date of Termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is specified as subject to this Section, such payment or benefit shall be made or provided at the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service” of the Participant, and (B) the date of the Participant’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 12 (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Participant in a lump sum, and any remaining payments and benefits due under the Plan shall be paid or provided in accordance with the normal payment dates specified for them herein.

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13.Death.  If a Participant dies while any amount would still be payable to such Participant under the Plan if the Participant had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to the executor, personal representative or administrators of the Participant’s estate.

14.Non-Employment.  This Plan is not an agreement of employment and it shall not grant the Participant any rights of employment.

15.Payment Not Salary.  Any Severance Benefits payable under this Plan shall not be deemed salary or other compensation to the Participant for the purposes of computing benefits to which he or she may be entitled under any pension plan or other arrangement of the Employer maintained for the benefit of its employees, unless such plan or arrangement provides otherwise.

16.ERISA Welfare Plan.  This Plan is intended to constitute a “welfare plan” maintained by the Company for the purpose of providing benefits for a select group of management or highly compensated employees under Department of Labor Regulation Section 2520.104-24 under ERISA, and any ambiguities in this Plan shall be construed to effect that intent.  Important administrative provisions of the Plan and important information about the Participant’s rights under the Plan and applicable law are contained in Attachment C.

17.Section 280G and Section 4999 Excise Tax.  If the payments and benefits  hereunder and any other amounts in the “nature of compensation” (whether pursuant to this Plan or any other plan, arrangement or agreement with the Employer, any person whose actions result in a change of ownership or effective control caused by Section 280G(b)(c) of the Code or any person affiliated with the Employer or such person) as a result of a change of control (collectively the “Company Payments”) are or will be subject to the Excise Tax, then if reducing the payments and benefits hereunder and any Company Payments to an amount that is one dollar less than the aggregate amount of such payments which could be made to a Participant before any portion of such payments becomes subject to such Excise Tax, results in the net after-tax amount to be received by the Participant being greater than the net after-tax amount to be received by the Participant prior to such reduction when taking into account the Excise Tax that would be paid by the Participant, then such payments shall be reduced (first by reducing any cash payments under this Plan and then by reducing any payments or benefits under any other plan, arrangement or agreement) to an amount which is one dollar less than the amount of the payments which could be made to Participant before any portion of the Company Payments becomes subject to Excise Tax

IN WITNESS WHEREOF, this instrument has been executed on this 12th day of November, 2013.

	
					
	 
	 
	AEROPOSTALE, INC.

	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	By:
	/s/ Kathy Gentilozzi
	 

	 
	 
	Name: Kathy Gentilozzi
	 

	 
	 
	Title: Senior Vice President, Human Resources

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ATTACHMENT A

DEFINITIONS

The following terms shall have the meanings set forth below for purposes of this Plan:

a.“Annual Incentive” means the bonus payable under Company’s Annual Incentive and Bonus Plan as approved by the Committee each year, subject to and conditioned upon the actual achievement of performance criteria as certified by the Board (or a duly authorized committee thereof).

b.“Base Salary” shall mean the greater of a Participant’s annual base salary on the Effective Date or the Participant’s Termination Date following the Effective Date.

c.“Cause” shall mean any one or more of the following: (i) gross negligence or willful misconduct of Participant in the performance of his or her duties; (ii) the willful failure of the Participant to perform substantially the Participant’s duties with the Employer (other than any such failure resulting from incapacity due to physical or mental illness), after instruction by an officer of the Employer or the Participant’s superior; (iii) a conviction of the Participant for, or the Participant’s plea of guilty or nolo contendere to, a felony; (iv) any act of fraud by the Participant; or (v) any act of dishonesty by Participant which is materially injurious to the Employer.

d.“Change of Control” shall mean the occurrence of any one of the following events as applicable to the Company, other than any such event that occurs or is announced prior to the Effective Date: 
(i)any “person” or “group” as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or any successors thereto becomes the “beneficial” owner (as defined in Rule 13d-3 under the Exchange Act) or any successor thereto, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities;
(ii)individuals who at the beginning of such period constitute the Board and any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election was previously so approved, cease for any reason to constitute a majority thereof;

(iii)a merger or consolidation of the Company with any other person (other than an affiliate), other than a merger or consolidation which (A) would result in all or a portion of the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting interests of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; provided, however, that a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person acquires more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities shall not constitute a Change of Control; or

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(iv)the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets.

Notwithstanding anything herein to the contrary, only one Change of Control shall be recognized under the Plan.

e. “Code” shall mean the Internal Revenue Code of 1986, as amended.

f. “Disability” shall mean a mental or physical impairment that qualifies the Participant for long-term disability benefits under a Company-sponsored long-term disability program.

g.“Effective Date” shall mean November 12, 2013.   

h.“Employer” shall mean the Company or any subsidiary of the Company for which a Participant is employed thereby.

i.“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

j.“Excise Tax” shall mean any excise tax imposed by Section 4999 of the Code (any similar penalty tax that may hereafter be imposed by any taxing authority) which may be payable by a Participant with respect to payments and benefits under this Plan or any other Company Payment.

k.“Company” shall mean Aeropostale, Inc. and any successor, whether by merger, consolidation, purchase or otherwise.

l.“Good Reason” shall mean the occurrence after a Change of Control of any of the following events or conditions which is not cured within ten (10) days after the Company receives written notice from the Participant setting forth in reasonable detail the basis for the Participant’s claim of Good Reason: (i) a reduction of 10% or greater in the Participant’s Base Salary from the Base Salary in effect immediately prior to the Effective Date,  or (ii) the Participant is required to be based at a location more than 50 miles from the location where the Participant was based and performed services immediately prior to the Effective Date.

m.“Potential Change of Control” means the execution of definitive documentation by the Company or its affiliates in respect of a transaction that, if consummated, would constitute a Change of Control.

n.“Protection Period” means the period commencing on the occurrence of the earlier of (i) a Potential Change of Control and (ii) a Change of Control and ending on the expiration of the applicable time period listed on Attachment B under the heading “Protection Period” after the occurrence of a Change of Control; provided that if the Protection Period commenced upon the occurrence of a Potential Change of Control, the Protection Period will immediately terminate upon the termination of the transactions contemplated by such Potential Change of Control.

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o.“Qualifying Termination” shall mean a termination of employment that entitles a Participant to severance benefits pursuant to Section 4 of the Plan.

p.“Termination Date” means the Participant’s termination date specified in any notice of termination.

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ATTACHMENT B

	
				
	Level
	Cash Severance
	Non-Compete
	Protection Period

	EVP
	24 months of Base Salary plus current year’s Annual Incentive payment prorated based on the Participant’s employment and the Company’s actual achievement of performance criteria, in each case up to the Participant’s Termination Date (the “Pro Rated Bonus”)
	18 months
	24 months

	SVP
	18 months of Base Salary plus the “Pro Rated Bonus”
	12 months
	18 months

	GVP
	9 months of Base Salary
	6 months
	12 months

	VP
	Greater of 2 weeks of Base Salary plus 1 week of Base Salary per year of service with an Employer or 6 months of Base Salary
	3 months
	12 months

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ATTACHMENT C

CLAIMS PROCEDURE 
1.Any claim by a Participant with respect to eligibility, participation, contributions, benefits or other aspects of the operation of the Plan shall be made in writing to a person designated by the Committee (as defined in the Plan) from time to time for such purpose.  If the designated person receiving a claim believes, following consultation with the Chairman of the Committee, that the claim should be denied, he or she shall notify the Participant in writing of the denial of the claim within ninety (90) days after his or her receipt thereof.  This period may be extended an additional ninety (90) days in special circumstances and, in such event, the Participant shall be notified in writing of the extension, the special circumstances requiring the extension of time and the date by which the Committee expects to make a determination with respect to the claim.  If the extension is required due to the Participant’s failure to submit information necessary to decide the claim, the period for making the determination will be tolled from the date on which the extension notice is sent until the date on which the Participant responds to the Plan’s request for information.

2.If a claim is denied in whole or in part, or any adverse benefit determination is made with respect to the claim, the Participant will be provided with a written notice setting forth (a) the specific reason or reasons for the denial making reference to the pertinent provisions of the Plan or of Plan documents on which the denial is based, (b) a description of any additional material or information necessary to perfect or evaluate the claim, and explain why such material or information, if any, is necessary, and (c) inform the Participant of his or her right, pursuant to Paragraph 3 of this Attachment, to request review of the decision.  The notice shall also provide an explanation of the Plan’s claims review procedure and the time limits applicable to such procedure, as well as a statement of the Participant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.  If a Participant is not notified (of the denial or an extension) within ninety (90) days from the date the Participant notifies the Company, the Participant may request a review of the application as if the claim had been denied.

3.A Participant may appeal the denial of a claim by submitting a written request for review to the Committee, within sixty (60) days after written notification of denial is received.  Receipt of such denial shall be deemed to have occurred if the notice of denial is sent via first class mail to the Participant’s last shown address on the books of the Employer.  Such period may be extended by the Committee for good cause shown.  The claim will then be reviewed by the Committee.  In connection with this appeal, the Participant (or his or her duly authorized representative) may (a) be provided, upon written request and free of charge, with reasonable access to (and copies of) all documents, records, and other information relevant to the claim; and (b) submit to the Committee written comments, documents, records, and other information related to the claim.  If the Committee deems it appropriate, it may hold a hearing as to a claim.  If a hearing is held, the Participant shall be entitled to be represented by counsel.  

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4.The review by the Committee will take into account all comments, documents, records, and other information the Participant submits relating to the claim.  The Committee will make a final written decision on a claim review, in most cases within sixty (60) days after receipt of a request for a review.  In some cases, the claim may take more time to review, and an additional processing period of up to sixty (60) days may be required.  If that happens, the Participant will receive a written notice of that fact, which will also indicate the special circumstances requiring the extension of time and the date by which the Committee expects to make a determination with respect to the claim.  If the extension is required due to the Participant’s failure to submit information necessary to decide the claim, the period for making the determination will be tolled from the date on which the extension notice is sent to the Participant until the date on which the Participant responds to the Plan’s request for information.

5.The Committee decision on the claim for review will be communicated to the Participant in writing.  If an adverse benefit determination is made with respect to the claim, the notice will include (a) the specific reason(s) for any adverse benefit determination, with references to the specific Plan provisions on which the determination is based; (b) a statement that the Participant is entitled to receive, upon request and free of charge, reasonable access to (and copies of) all documents, records and other information relevant to the claim; and (c) a statement of the Participant’s right to bring a civil action under Section 502(a) of ERISA.

6.Nothing herein shall preclude a Participant (or any beneficiary) from commencing a lawsuit or pursuing his or her remedies under section 502(a) of ERISA notwithstanding the procedures set forth herein and there shall be no requirement that these procedures be exhausted before a Participant (or any beneficiary) may bring a legal action seeking payment of benefits.  Any review by the Committee shall be on a de novo basis based on the terms and conditions of the Plan.

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EXHIBIT A 
AGREEMENT AND RELEASE

SEPARATION AGREEMENT AND RELEASE

This Separation Agreement and Release (the “Agreement”), dated ___________, 2013 (the “Effective Date”) is made between Aeropostale, Inc., a Delaware corporation having an office at 112 West 34th Street, New York, New York 10120 (“Employer”) and  ____________, an individual residing at _________________, _____________________ (Employee”).    
               
WHEREAS:
Employee’s employment with the Employer is terminated on _________, ________, 201_ (the “Termination Date”); and
Employer is obligated to pay to the Employee Severance Benefits (as defined under the Aeropostale, Inc. Change of Control Severance Plan (the “Plan”)), subject to, and in accordance with, the terms and conditions of the Plan, provided that Employee enters into this Agreement and provides the release contemplated under Section 4(h) of the Plan.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto agree as follows:
		
	1.
	Employee acknowledges that Employee’s employment with Employer is terminated as of the Effective Date, and Employee agrees that Employee will not, from and after such date, hold herself/himself out as an employee or other agent of Employer.

		
	2.
	Subject to the terms and conditions of the Plan and this Agreement, Employer hereby agrees to pay to Employee, in consideration of the mutual promises and releases contained herein: (a) a severance payment (as set forth in Section 4(a) of the Plan) in the amount of $________, less applicable withholding taxes and/or deductions which will be payable in a single cash lump sum payment on the 60th day following the Termination Date; (b)(i) any accrued but unpaid base salary through the Termination Date, less applicable withholding taxes and/or deductions plus (ii) an amount, if any, equal to accrued and unused paid time off (pto) days, less applicable withholding taxes and/or deductions to be paid in a lump sum within 7 days after the Termination Date; and (c) any earned but unpaid Annual Incentive (as defined in the Plan) based on the actual achievement of performance criteria for the most recently completed measuring period occurring immediately prior to the Termination Date, less applicable withholding taxes and/or deductions to be paid in the form and at the time any such Annual Incentive payments are paid to other eligible employees in such Annual Incentive plan.    

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	3.
	Except with respect to any payments under paragraphs 1 and 2 of this Agreement, any amounts payable under Section 4(b) of the Plan and any vested accrued benefits under any 401(k) plan or other tax-qualified retirement plan of the Employer in accordance with the terms and conditions of such plan or applicable law, Employee acknowledges, understands and agrees that Employee will not be entitled to receive any remuneration of any kind or nature from Employer, including, but not limited to, vacation pay, which is accrued after the Effective Date, bonus pay, health benefits, COBRA payments, or travel, lodging, or any other expense reimbursements or other payments of any kind.  Provided, however, that Employee may, if applicable, receive from Employer reimbursement of Employee’s actual reimbursable company-related expenses that she incurred (i) in accordance with Employer’s reimbursement policy and (ii) prior to the Effective Date.  Such reimbursable expenses must be presented to and accepted by Employer prior to Employee receiving the severance payment under paragraph 1 of this Agreement.  In addition, after the Effective Date, Employee shall not be permitted to make contributions to Employee’s 401(k) account, if any.  Nothing in this Agreement shall be deemed to be a waiver of Employee’s right to elect continuation of health coverage on a self-pay basis under COBRA or of any rights to indemnification that Employee may have under the Employer’s organizational documents or otherwise.

		
	4.
	(A) As a material inducement to Employer to enter into this Agreement, and in consideration of Employer’s obligations under this Agreement and for other good and valuable consideration, the receipt of which is hereby acknowledged by the Employee, Employee hereby irrevocably, unconditionally and generally releases, discharges, and covenants not to sue or bring any claim, action, lawsuit or complaint of any nature against Employer and each of Employer’s affiliates, parents, subsidiaries, related companies, divisions, insurers and their respective past and present officers, directors, employees, and the heirs, executors, administrators, receivers, and any and all employee benefit plans (and fiduciaries of such plans) sponsored by any of them and successors and assigns of all of the foregoing (collectively, “Releasees”), from and with respect to any and all actions, causes of action, suits, liabilities, claims, and demands whatsoever, whether known or unknown, from the beginning of time to the date of this Agreement (collectively, “Claims”).  The parties intend this release to be general and comprehensive in nature and to release all claims and potential claims against the Releasees to the maximum extent permitted at law.  Claims being released include, without limitation, any and all claims:  (a) arising directly or indirectly out of or in any way related to Employee’s employment with Employer or the termination of Employee’s employment with Employer; (b) pursuant to any contract, express or implied, written or oral; (c) for wrongful dismissal or termination of employment; (d) arising under any federal, state, local or other statutes, orders, laws, ordinances, regulations or the like that relate to the employment relationship and/or specifically that prohibit discrimination on the basis of age, race, color, religion, disability, sex, sexual orientation, national origin, or citizenship, including, without limitation, Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, 42 U.S.C. sec. 2000 et seq., the Employee Retirement Income Security Act of 1974, 29 U.S.C. sec. 1001 et seq.,  the Americans With Disabilities Act, 42 U.S.C. sec. 1210 et seq., the Family and Medical Leave Act , 29 U.S.C., sec. 2601 et seq., the Civil Rights Act of 1991, 42 U.S.C. Sections 1981 through 1988, the Sarbanes-Oxley Act of 2002, the New York State Human Rights Law, the New York City Administrative Code, the New York Labor Law, the New York Executive Law, the Worker Adjustment Retraining and Notification Act, the Occupational Safety and Health Act, the Americans with Disabilities Act, the Fair Credit Reporting Act, the Immigration Reform Control Act, the National Labor Relations Act, all as amended, and any applicable rules and regulations promulgated pursuant to or concerning any of the foregoing statutes.  Without limiting the 

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generality of the above, Employee hereby waives and releases any rights or claims that she may have arising under the Age Discrimination in Employment Act of 1967, as amended, or to any statutes, regulations or ordinances of any state or governmental entity, all of which have been, could be or could have been asserted by Releasor or on his behalf  (and all of which have been, would be or would have been disputed by Releasee); (e) for tort, tortious or harassing conduct, infliction of mental distress, interference with contract, fraud, libel or slander; (f) for damages, including, without limitation, punitive, actual, liquidated or compensatory damages or for attorneys’ fees, expenses, costs, wages, injunctive or equitable relief; and (g) arising out of or in any way related to any transactions, occurrences, acts, statements, disclosures or omissions occurring prior to the date of this Agreement.  Nothing contained in this paragraph 4 shall be construed as a waiver or release of any claim from breach of this Agreement.  

(B) Employee affirms that Employee has not filed, caused to be filed, and presently is not a party to any claim, complaint or action against Releasees in any forum or form.  Employee further affirms that Employee has been paid and/or has received all leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which Employee may have been entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to Employee.  Employee furthermore affirms that Employee has no known workplace injuries or occupational diseases and had been provided and/or has not been denied any leave requested under the Family and Medical Leave Act and/or any other federal, state or local leave or disability accommodations law.  Employee further affirms that Employee has not complained of, been retaliated for reporting and/or is not aware of any fraudulent activity or any act(s) which would form the basis of a claim of fraudulent or illegal activity against the Company.  If Employee is subject to subpoena, court order or otherwise compelled to testify, appear or provide information regarding the Company, within three (3) days of Employee’s receipt of said subpoena, court order or other notification, Employee will provide written notice, via facsimile transmission and mail to Aeropostale, Inc., 112 West 34th Street, New York, New York 10120, Attention:  Legal Department; Facsimile Number (646) 619-4873.

		
	5.
	Employee represents that Employee has returned all of Employer’s property, including, without limitation, all mailing lists, reports, files, memoranda, computer hardware, software, access codes, discs and instruction manuals, credit cards, door and file keys, and other physical or intellectual property that Employee received, prepared or helped to prepare in connection with Employee’s employment by Employer, and Employee has not retained any copies, duplicates, reproductions or extracts thereof. 

		
	6.
	Employee acknowledges and agrees that, during the course of employment with Employer, Employee had access to and acquired Confidential Information.  As used in this Agreement, “Confidential Information” means any business, financial or technical information or trade secrets or proprietary information (including, without limitation, account records, plans for the creation or disposition of products, product development plans, financial data, financial plans, marketing strategies, and personnel records and evaluations), the use or disclosure of which could be detrimental to the interests of Employer, its shareholders, directors, officers, employees or agents.  Employee agrees to keep Confidential Information confidential at all times and not to disclose any Confidential Information, except as the same may be required under compulsion of law, and further provided that Employee gives Employer prompt notice of any such request so that Employer may seek a protective order to prevent disclosure. 

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	7.
	Employee agrees that for a period of six (6) months following the Effective Date of this Agreement, Employee will not, directly or indirectly, on Employee’s behalf or on behalf of or in conjunction with any person, partnership, firm, company, corporation or other entity, without the Company’s prior written consent, solicit, induce, hire or engage, or attempt to solicit, induce, hire or engage any employee, agent or consultant of the Company (or its subsidiaries) to terminate his or her employ or other relationship with the Company (or its subsidiaries), or in any way interfere with or disrupt the Company’s (or its subsidiaries)  relationship with any of its employees, agent, or consultants.

		
	8.
	For the [______(See Plan for applicable time period)] month period following the Termination Date, Employee shall not, directly or indirectly, become an employee, consultant, joint venture, serve on the board of, lender, investor (other than as a 1% or less shareholder of a publicly traded corporation), guarantor or otherwise render services to any “Company Competitor” or any supplier, agent, vendor, independent contractor, professional organization or consultant working for or on behalf of Employer.  “Company Competitor” shall mean those companies listed on Exhibit A annexed hereto which includes all subsidiaries, related companies and affiliates of those companies listed on Exhibit A.  [Employee shall during the period set forth above in this paragraph 8, notify Employer of any change in address and identify each subsequent employment of business activity in which Employee shall engage during such period, stating the name and address of the employer or business organization and the nature of Employee’s position.]

		
	9.
	Employee will not make or cause to be made any statement, opinion or observation, or communicate or cause to be communicated any information, that could reasonably be considered to disparage, criticize or reflect negatively in any way on Employer, its parents, subsidiaries, affiliates, shareholders, directors, officers, employees or agents.  Nothing in this Agreement shall prohibit or restrict Employee from: (i) disclosing information, as required by law, in a proceeding or lawsuit in which Employer is a party or in any other proceeding or lawsuit upon 10 days prior written notice to Employer; or (ii) providing information to or testifying or otherwise assisting in any investigation or proceeding  brought by any federal regulatory or law enforcement agency or legislative body or Employer’s designated legal, compliance or human resources officers.  In addition, Employee agrees to cooperate with Employer by making himself or herself available to testify on behalf of Employer or any of its subsidiaries or affiliates in any action, suit or proceeding whether civil, criminal, administrative or investigative and to assist Employer by providing information and meeting and consulting with Employer representatives or counsel as requested. 

 

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	10.
	If Employee breaches any of Employee’s obligations under this Agreement, Employer, in addition to all of the other rights which it may have in equity or in law, shall be released from any obligation to make the payments referred to in paragraphs 1 and 2.  Employee and Employer agree to keep the existence and the terms of this Agreement confidential, except that Employee and Employer may disclose the same to their attorneys or financial advisors if such attorneys or financial advisors agree to keep the same confidential.  Employee understands and agrees that if Employee breaches the confidentiality or the non-disparagement provisions of this Agreement it will cause Employer irreparable and continuing harm, for which Employer would have no legal remedy.  Consequently, if Employee breaches any part of the confidentiality, non-solicitation or the non-disparagement provisions of this Agreement, Employer will have the right to proceed against the Employee in a court of law or before an arbitrator for injunctive relief as well as seek all other remedies and damages available to Employer. 

		
	11.
	Employee agrees that Employee will not seek reinstatement, employment or reemployment with Employer or any of its parents, subsidiaries, affiliates, successors or assigns, and that any such application for reinstatement, employment or reemployment may be rejected without cause and without any liability to Employer or the entity to which the application is made.

		
	12.
	The provisions of this Agreement are severable, and if any provision or term, or part of provision or term of this Agreement is declared or determined by a court to be illegal or invalid, the validity of the remaining parts, provisions or terms shall not be affected thereby, and said illegal or invalid part, provision or term shall not be deemed to be a part of this Agreement.

		
	13.
	Nothing contained in this Agreement or the fact that Employer has signed this Agreement shall be considered as an admission or suggestion of any liability of Employer to Employee, and Employer specifically disclaims any liability for any wrongful acts against Employee on the part of itself, its employees or agents.

		
	14.
	Employer and Employee each agree to bear their own costs, expenses, attorneys’ fees and other expenditures incurred in connection with this Agreement.

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	15.
	Neither party has relied on any representation with respect to the subject matter of this Agreement or any representation inducing the execution of this Agreement except such representations as are expressly set forth in this Agreement. This Agreement: (a) represents the entire agreement of the parties hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof, and the terms of this Agreement may not be modified, amended or supplemented except by an agreement in writing signed by both parties hereto; (b) shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives, heirs and successors; (c) shall be governed by, and construed in accordance with, the laws of the State of  New York (regardless of the laws that might otherwise govern under applicable principles of conflicts of laws) and venue and jurisdiction of any disputes arising pursuant to this Agreement shall be proper in the courts of the Southern District of New York.

		
	16.
	Employee acknowledges and represents that Employee has been provided with and has read this Agreement and fully understands the terms of this Agreement and that Employee has had sufficient opportunity to review it and to confer with an attorney before signing this Agreement.  Employee further acknowledges that Employee is voluntarily and knowingly entering into this Agreement.

		
	17.
	Employee shall have a period of [twenty-one (21)]1 days from the date Employee receives this Agreement in which to review, sign and return the Agreement to Employer.  In the event that this Agreement is not returned to Employer within that time frame, then this offer of severance shall be rescinded and this Agreement shall be of no force and effect.

		
	18.
	No waiver of any breach of any term or condition of this Agreement shall be or shall be construed to be a waiver of any other breach of this Agreement.  No waiver shall be binding under this Agreement unless in writing and signed by the party waiving such breach.  This Agreement may not be changed, altered and/or modified except by a writing signed by Employee and Employer.  The parties agree that this Agreement may be executed in counterparts, each of which shall be deemed to constitute an executed original.

		
	19.
	[Only if Employee is over 40]Employee will have seven (7) calendar days after the date Employee signs this Agreement to revoke this Agreement if Employee so desires.  Any revocation must be in writing and must be received by Kathy Gentilozzi, SVP Human Resources, Aeropostale, Inc. 112 West 34th Street, New York, New York 10120, within the revocation period to be deemed effective.  This Agreement shall be of no force and effect if Employee timely revokes it, but if Employee signs and does not revoke it within the foregoing revocation period, it shall then become effective and enforceable

**Signature page follows on next page**

	
					
	 
	 
	 
	 
	 

	1 Replace within 45 days to the extent legally necessary as determined by Employer.

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EMPLOYEE UNDERSTANDS AND INTENDS THAT, BY SIGNING THIS AGREEMENT AND EMPLOYEE’S RELEASE, EMPLOYEE HAS WAIVED ALL CLAIMS AGAINST EMPLOYER AND ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS AND INSURERS, INCLUDING ALL CLAIMS FOR LOST WAGES, BENEFITS OR PAYMENT OF ATTORNEY’S FEES, AND CERTIFIES THAT EMPLOYEE ENTERS INTO THIS AGREEMENT KNOWINGLY, VOLUNTARILY AND AFTER HAVING SUFFICIENT OPPORTUNITY TO CONSULT WITH EMPLOYEE’S ATTORNEY AND TO REVIEW THIS DOCUMENT (INCLUDING THE EXHIBITS HERETO) IN ITS ENTIRETY. 

                        	
						
	 
	 
	AEROPOSTALE PROCUREMENT , INC.

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	BY:
	 
	 
	 

	 
	 
	 
	Kathy Gentilozzi

	 
	 
	 
	SVP - Human Resources

	 
	 
	 
	 
	 
	 

	 
	 
	 
	DATE:
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	BY:
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	DATE:
	 
	 

                                

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EXHIBIT A
Company Competitors*

American Eagle Outfitters, Inc.
Abercrombie & Fitch
Buckle, Inc.
Charlotte Russe Holding, Inc.
Children’s Place
Gap, Inc.
Hot Topic, Inc.
Express Stores
The Gymboree Corporation
New York & Company, Inc.
Pacific Sunwear of California, Inc.
Tween Brands, Inc.
Urban Outfitters, Inc.
Wet Seal, Inc.
Zumiez, Inc.

*Including all subsidiaries, successors, related companies and affiliates of the companies listed on this Exhibit A.

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0617/17540-001 current/39625950v2exh_101.htm

Exhibit 10.1

 

 

MANUFACTURING AND SUPPLY AGREEMENT

 

Between

 

UNITED-GUARDIAN, INC.

 

And

 

SMITHS MEDICAL ASD, INC.

 

This MANUFACTURING AND SUPPLY AGREEMENT (“Agreement”) is effective November 1, 2013 (“Effective Date”), and is made and entered into by and between UNITED-GUARDIAN, INC. (“UNITED”), a corporation organized and existing under the laws of the State of Delaware, USA, with its principal place of business at 230 Marcus Blvd., P.O. Box 18050, Hauppauge, NY 11788 and SMITHS MEDICAL ASD, INC. (“SMITHS”) having offices at 600 Cordwainer Dr., 3rd Floor, Norwell, MA 02061.

 

WHEREAS, UNITED and SMITHS desire to enter into an Agreement for SMITHS to Manufacture the Product (as defined below) for a fee payable by UNITED to SMITHS.

WHEREAS, SMITHS has the expertise and experience necessary to Manufacture (as defined below) the Product.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:

	
1.  

	
DEFINITIONS

1.1.       “Affiliate” means any person or entity that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with a party, where control means the direct or indirect, legal or beneficial ownership of more than twenty percent (20%) of the outstanding voting rights in a company.

 

1.2.        “BFS” means blow-fill-seal packaging technology.

1.3.       “cGMP” means the current Good Manufacturing Practice Regulations that apply to the manufacture, processing, packing, or holding of a drug, or the Quality System Regulation that applies to the design, manufacture, packaging, labeling and storage of a finished device, as such are or may be applicable to the manufacture and packaging of the Product.

1.4.       “Facility” means the facility of SMITHS located in Vernon Hills, IL used for Manufacture of the Product.

1.5.       “FD&C Act” The Federal Food, Drug, and Cosmetic Act.

1.6.       “Manufacture” includes all activities performed by SMITHS that are subject to cGMP, including but not limited to the process by which SMITHS utilizes its BFS and other equipment to produce and package the Product as outlined in Schedule A.

1.7.       “Materials” means the specific equipment, tooling and supplies used in connection with the Manufacture of the Product, and not used in connection with the manufacture of other products by SMITHS.

1.8.       “Price” means the charge to UNITED for Product supplied by SMITHS. All prices shall be in U.S. Dollars.

  

 

  

1.9.       “Product” means Renacidin® Irrigation, the pharmaceutical product listed on Schedule A attached hereto, in its final single-use dosage form.

1.10.     “Quality Agreement” means the agreement attached hereto as Schedule C and made a part of this Agreement.

1.11.    “Regulatory Authority” means any local, state, federal, or international regulatory agency, department, or bureau, including the United States Food and Drug Administration (“FDA”), which is responsible for issuing approvals, licenses, registrations, or authorizations necessary for the Manufacture, use, storage, import, transport, or sale of Product.

1.12.    “Services” means the operations relating to the packaging of the Product, such as quality assurance, and shipping as outlined in Schedule A.

1.13.    “Specifications” means the specifications contained in or referred to in the Quality Agreement, as amended from time to time.

 

1.14.    “Territory” means the United States of America.

1.15.     “Contract Year” means the 12-month period beginning no later than the 1st day of the first full month that begins six (6) months after UNITED receives approval from the FDA of its application to market the Product, or upon first saleable product shipments intended for United Guardian customers, whichever occurs first, and continuing for each 12-month period thereafter until this Agreement terminates. UNITED agrees to give SMITHS at least 90 days notice and lead time for all orders.

2.             PACKAGE AND SUPPLY

2.1        Manufacture, Supply and Purchase Obligations. SMITHS shall Manufacture for and supply to UNITED, and UNITED shall purchase from SMITHS, such quantities of the Product as UNITED may order from SMITHS in accordance with the terms and conditions of this Agreement.  Based on firm orders and forecasts provided by UNITED, and at no cost to Smiths, UNITED shall supply SMITHS with certain raw materials needed to Manufacture the Product (“Raw Materials”), which are set forth on Schedule B. Smiths shall Manufacture, test, release, and ship Product to UNITED. SMITHS shall assume all responsibility and risk, up to the replacement value, for the safekeeping, storage, and handling of all shipments of Raw Materials received from UNITED.

UNITED shall purchase all of its requirements for Product from SMITHS, and SMITHS shall sell Product exclusively to UNITED. SMITHS shall use UNITED Materials, including but not limited to UNITED molds and related equipment as set forth in Section 3.3 hereof, exclusively and solely for Manufacture of UNITED Product unless otherwise agreed.

2.2        cGMP Compliance.  SMITHS shall Manufacture the Product in accordance with the Specifications, with applicable cGMP’s and with such other applicable laws and regulations as shall be set forth in the Quality Agreement.

2.3        Services and Information to be provided by UNITED.

(a)  UNITED shall provide SMITHS with all necessary scientific and technical data relating to the Product, including bulk Product specifications and Product formulations subject to the confidentiality provisions set forth in paragraph 11 hereof. UNITED shall also provide all pertinent environmental health and safety information necessary to assure safe handling and disposal of the Raw Materials and the Product by SMITHS’ employees.  In addition, UNITED shall, at its cost, make available to SMITHS, on an as-needed basis, the services of UNITED technicians who are familiar with such data.

(b)  Without diminishing the obligation of SMITHS to comply with all applicable cGMP’s and other applicable laws and regulations, UNITED shall endeavor to notify SMITHS in writing within 30 days of any final changes to cGMP’s or other final rule or regulation of a Regulatory Authority of which UNITED becomes aware, that apply to the Manufacture of the Product.

 

  

2

  

2.4        FDA Debarment.  SMITHS certifies that it is not debarred under subsection 306 (a) or (b) of the FD&C Act and that it has not and will not use in any capacity the services of any person debarred under such law with respect to services to be performed under this Agreement.  SMITHS further certifies that it will immediately notify UNITED in writing if it becomes debarred under subsection 306 (a) or (b) of the FD&C Act.

3.             LICENSE AND REGISTRATIONS

3.1        Mutual Grants. The parties acknowledge and agree that nothing herein shall be deemed to terminate the confidentiality provisions contained in the Confidentiality Agreement dated February, 21 2013, which continues to apply to all correspondence and discussions between the parties that took place prior to the effective date of this Agreement. The confidentiality provisions contained in this Agreement will control all discussions or correspondence that took place or will take place beginning on the effective date of this Agreement, and any conflict between the terms of the previous Confidentiality Agreement and the confidentiality provisions of this Agreement shall be resolved in favor of the terms herein.  Nothing in this Agreement shall be construed as giving either party any license or right in trademarks, patents, designs, copyright or other intellectual property rights belonging to the other party, except that SMITHS shall have limited license to use UNITED’s trademarks to the extent that SMITHS is required by UNITED to apply the same to the Product or its packaging for the purpose of this Agreement.

 

3.2        Regulatory Licenses.  SMITHS will be responsible for, and bear the costs of, filing for all necessary permits, establishment and facility licenses required by Regulatory Authorities necessary for SMITHS to Manufacture the Product for UNITED under this Agreement.  UNITED will be responsible for, and bear the costs of, filing all necessary permits, licenses, registrations, certificates, approvals and other forms of authorization from all Regulatory Authorities necessary for UNITED to market and sell the Product, including the marketing authorizations. To the extent either party possesses relevant information, SMITHS and UNITED shall cooperate in obtaining all relevant permits, licenses, registrations, certificates, approvals and other forms of authorizations. The obligation of purchase and supply as set forth in Section 2.1 shall become effective upon the granting of the necessary permits and approvals by the Regulatory Authorities.

In the event UNITED is required to file a regulatory submission due to SMITHS changing its manufacturing process, equipment, or location, and such change was not requested by UNITED, then SMITHS shall be responsible for all costs incurred by UNITED as a result of such change, including but not limited to the costs of a new mold, parison heads, or filling system, new pilot and stability batches, and the costs of preparing and submitting any new regulatory filings that are required as a result of SMITHS making such changes, including consultant costs. If a regulatory filing is required as the result of the occurrence of a Force Majeure (as defined in paragraph 15.1 of this Agreement), then UNITED agrees to pay all of the costs of such filings. In situations where the parties agree to make changes that benefit both parties, and that requires the filing of a new submission, the parties agree to share equally in the costs of that new filing.

SMITHS shall be responsible for the cost of producing any batches of Product that are required as part of any new regulatory submission pursuant to this paragraph unless either (a) the new submission is the result of a change requested by UNITED, or (b) the batches produced can be sold by UNITED.  If new batches are required for a submission that benefits both parties and which was mutually agreed upon by both parties, the cost of the submission batches will be shared equally unless they can be marketed by UNITED, in which case the cost of such batches will be borne entirely by UNITED.

 

3.3       Ownership.  The molds, associated filling systems, parison heads (if any), and any other equipment that is paid for by UNITED and used by SMITHS to Manufacture the Product (as set forth in Schedule B), shall be owned by UNITED, and for the duration of this Agreement UNITED will be solely responsible for insuring that equipment.  Except as otherwise set forth herein, SMITHS shall own and have property rights to all specific Materials and general manufacturing equipment needed to Manufacture Product.  Notwithstanding anything contained herein, SMITHS shall be the exclusive owner of any intellectual property rights arising from SMITHS efforts hereunder that are not specifically related to the Product, its formulation or packaging.

 

  

3

  

4.             FORECASTS, ORDERS AND DELIVERY

4.1         Forecasts.  On or prior to the tenth (10th) calendar day of January, April, July and October in each year during the term of this Agreement, UNITED shall provide to SMITHS a commercially reasonable rolling forecast of Product for the twelve months following the month in which such forecast is submitted. The first three (3) months of each forecast constitutes a firm order.

4.2         Orders.  UNITED shall issue quarterly Purchase Orders before the tenth (10th) calendar day of each calendar quarter, specifying quantity of Product and delivery requirements for the calendar quarter following the one in which the Purchase Order was submitted.

4.3         Delivery.  SMITHS shall deliver ordered quantities of the Product on or before the date specified in the applicable purchase order, provided such date is at least 90 days after receipt of the purchase order, or the alternative date agreed upon in advance with UNITED. All shipping costs are the responsibility of UNITED.

4.4         Shipments.  SMITHS shall deliver with each batch of Product in a shipment a Certificate of Analysis, accompanied by a statement that the batch was Manufactured according to this Agreement (including the Quality Agreement), together with any other batch related records specified in the Quality Agreement. SMITHS shall also provide release documents at the time each batch of Product is shipped.

4.5         Obsolete Inventory.  Any UNITED-specific obsolete materials purchased by SMITHS to Manufacture the Product, including but not limited to Raw Materials, work in process, and packaging materials shall be reimbursed to SMITHS by UNITED at SMITHS costs. The maximum amount of obsolete inventory that UNITED will reimburse SMITHS for will be that associated with the first three (3) months of the most current forecast.  At such time as agreed by both parties UNITED shall bear the cost of shipment to UNITED or all destruction costs related to said inventory unless otherwise agreed to in writing. United's obligation is limited to Raw Materials, packaging materials and work in process labor.  Any finished goods produced under a firm order shall be purchased by UNITED at the contracted price.

5.           DELIVERY

 

5.1         Terms of Delivery.  The Product shall be shipped from SMITHS to a destination designated by UNITED.  Each shipment shall be Ex Works Vernon Hills, IL.  The transportation costs for shipment of Product from SMITHS to UNITED designated location shall be borne by UNITED.  Transportation shall be arranged by SMITHS to occur in full-truckload quantities when possible.

6.           PRICES AND PAYMENT

6.1         Price.  The prices for the Product shall be as set forth on Schedule B.  

6.2         Payment.  Payment of the Price shall be made within thirty (30) days from date of receipt of the SMITHS invoice.  SMITHS shall date and send invoices to UNITED for the Product upon shipment of the Product to UNITED.  If UNITED fails to pay or procure payment of the full amount of any invoice when due, and without in any manner excusing such violation, UNITED agrees to pay SMITHS interest at a rate of 1.5% per month (or the highest rate permitted by applicable laws, if lower) on the amount due and owing to SMITHS, from the date the payment is due until paid.  Without prejudice to any of its other rights, SMITHS may withhold shipments of the Product if UNITED has not paid an invoice when due.

6.3        Adjustment of Price.  Prices do not include, and UNITED is responsible for, any and all applicable taxes and governmental fees, assessments, duties and charges.  The prices for the Product for the first three (3) years following the Effective Date of this Agreement are provided in Schedule A.  Thereafter, Smiths may increase once per year, provided that UNITED is notified in writing sixty (60) days in advance of each subsequent adjustment. For any price increase in excess of 5% in any one year, within thirty (30) days after the receipt of notice of the price increase, UNITED may request written documentation from SMITHS showing the increase in the amount of Smiths’ costs for labor or components used in manufacturing the Product that is the basis for such price increase, and SMITHS shall furnish such documentation within thirty (30) days thereafter, and any such price increase in excess of 5% will be limited to the documented labor and component cost increases. Any such adjustment to price shall be evidenced as an amendment to Schedule A of this Agreement and signed by both parties. Notwithstanding the foregoing, if unforeseen market issues arise during the term of the Agreement that require further consideration relative to price adjustments, the parties will promptly and fairly address this issue.

  

4

  

	
7.  

	
WARRANTY

7.1.       SMITHS’ Warranty.  SMITHS warrants to UNITED that the Product, at the time of delivery to UNITED as provided in Section 5: (i) will conform to the Specifications as then in effect, (ii) were Manufactured in accordance with cGMP and other applicable legal requirements relating to the manufacturing of Product, and (iii) are free and clear of all liens or encumbrances; (iv) are not adulterated as defined under Title 21 - FOOD AND DRUGS: CHAPTER 9 - FEDERAL FOOD, DRUG, AND COSMETIC ACT: SUBCHAPTER V - DRUGS AND DEVICES: Part A - Drugs and Devices: Sec. 351 - Adulterated drugs and devices. However, SMITHS shall not be responsible in the event adulteration was caused by adulterated Raw Materials provided by United. SMITHS further warrants to UNITED that through the expiration date, Product: (I) will be free from any defects in material and workmanship, and (II) will not fail to meet Specifications for a reason that is attributable to any deviations by SMITHS from cGMP. SMITHS acknowledges that the properties of the plastic bottle are such that they may be subject to change based upon heat, cold and method of packaging, freight and handling. Due to the uncertainty of these variables, SMITHS agrees to use commercially reasonable efforts in preparing Product for shipment. To the extent that a claim is made that Product fails to comply with the Specifications and such claim is related solely to a deformity or defect in the Product that may be environmentally related, it shall be UNITED’s obligation to show that the carrier stored and transported Product in accordance with the environmental parameters.   SMITHS’ sole obligation and Buyer's exclusive remedy for any breach of the warranty in this Section 7.1 will be replacement of the defective Product.

7.2        Mutual Representations.  Each party hereby represents and warrants that it has the full power and authority to enter into and perform this Agreement, and each party knows of no contract, agreement, promise, undertaking or other fact or circumstance that would prevent the full execution and performance of this Agreement.

8.           QUALITY CONTROL REQUIREMENTS

8.1        General.  SMITHS shall perform quality control release testing of the Product, in accordance with cGMP and all other applicable regulatory requirements and agreed analytical and other testing procedures for Product release. UNITED shall at its own expense conduct inspections and tests as it deems necessary to determine the acceptability of the Product for distribution into interstate commerce within 30 days after receipt of delivery.  Should UNITED fail to inspect the Product within that time or fail to notify SMITHS of any deficiency within 30 days UNITED shall be deemed to have inspected and approved the Product.  Notwithstanding anything herein to the contrary, the thirty (30)-day notice provision shall not apply to any latent defect that is not, or could not, be detected within that timeframe by standard accepted QC inspection protocols.

8.2        Stability and Sterility Assurance.  SMITHS shall perform any sterility testing of the Product in accordance with cGMP and all other applicable regulatory requirements, such testing costs to be borne by SMITHS.  UNITED will be responsible for the cost of all analytical and stability and agreed analytical and testing procedures with costs borne by UNITED.

 

8.3        Quality Agreement.  The Product shall be Manufactured in accordance with the Quality Agreement. The parties shall agree upon reasonable tests to be undertaken by SMITHS prior to release and shipment of the Product, including all inspection methods to determine the acceptability of a batch, and such procedures shall be a part of or appended to the Quality Agreement (Schedule C) and incorporated therein.  This section is subject to Section 8.1.

8.4         Inspections.

(a)  UNITED shall subject a Product to a quality control inspection in accordance with the applicable UNITED quality control standards and procedures at UNITED’s discretion as set forth in the Quality Agreement.

  

5

  

(b)  At a reasonable time but no more than once per year (or such additional times as mandated by a Regulatory Authority or as necessary for investigation of an issue related to Quality Controls ), upon at least 48 hours notice, SMITHS shall permit UNITED, or its representatives, to inspect during regular business hours SMITHS’ manufacturing facility for the purpose of assuring compliance with cGMP and any other applicable regulatory and quality assurance requirements, procedures or standards.  Upon reasonable prior notice, SMITHS shall permit UNITED to review periodically SMITHS’ quality control procedures and records, at reasonable times with a representative of SMITHS present, in order to assure satisfaction of the requirements of this Agreement. The use of any third party representative shall be subject to SMITHS’ reasonable consent.  Any such representative shall be required as a condition to an inspection to execute SMITHS’ non-disclosure agreement and to abide by such other conditions as SMITHS reasonably deems necessary for the protection of its confidential or proprietary information.  UNITED shall be responsible for any breach of confidentiality by any such representative.

(c)  SMITHS shall (i) fully cooperate with UNITED or its representatives who may visit SMITHS’ production facility as provided in Section 8.4(b), (ii) take appropriate corrective action within 15 days or another reasonable number of days as agreed to by the parties (or immediately if there are issues of safety, health, etc.) of notification to comply with cGMP requirements, and (iii) when requested by UNITED, describe in writing corrective action planned or taken.

8.5        Regulatory Inspections.  In the event that any portion of the SMITHS facility involved in the Manufacture of Product or any aspect of its Quality Control System that is relevant to SMITHS’s Manufacture of the Product is the subject of an inspection by any Regulatory Authority or any other duly authorized agency of any national, state, or local government, SMITHS shall notify UNITED promptly upon learning of such inspection and shall supply UNITED with copies of any correspondence or portions of correspondence that relate to the Product.  In the event that either party receives any correspondence or other communication from any Regulatory Agency relating to the Manufacture of the Product, it shall provide the other party with a copy of each such communication and the proposed response.

8.6        Records.  UNITED shall have the right to audit SMITHS’s’ records relating to its performance under this Agreement.  SMITHS shall maintain reserve samples, all batch and other packaging and analytical records, all records of shipments of Product and all validation data relating to the Product, and other applicable records, for the time periods required by applicable laws and regulations, and shall make such data available to UNITED and Regulatory Authorities upon UNITED’s reasonable request or if required by law.

 

9.           REJECTION

9.1           General.  In the event that any portion of the Product delivered to UNITED by SMITHS shall fail to conform to any of the Specifications, UNITED may reject that portion by giving written notice to SMITHS within 30 days after receipt of delivery. SMITHS shall be given an opportunity to investigate whether or not the Product meets Specifications and if it is agreed that the Products do not meet specifications, UNITED shall be entitled to return such non-conforming Products to SMITHS at SMITHS’ expense, and to receive fully compliant Product in replacement, subject to SMITHS having in stock relevant materials and components..  If there is a disagreement as to whether product is conforming or not, the product will be sent to an independent laboratory for a final determination, the cost of which shall be borne by the party whose determination of conformance or non-conformance was incorrect. If it is determined that the product is non-conforming, UNITED shall destroy any non-conforming Product at SMITHS’s expense, and in accordance with all applicable legal requirements.  This section is subject to Section 8.1.  SMITHS shall reimburse UNITED for the cost of all Raw Materials lost as a result of Product failing to meet Product specifications.

9.2           Dispute Resolution.  If SMITHS disputes UNITED’s rejection, the parties shall submit samples of the rejected Product for analysis to a mutually acceptable independent laboratory, whose decision in the matter shall be final and binding.  The costs of such analysis shall be borne by SMITHS, unless such analysis shows that the Product met the Specifications, in which case UNITED shall bear the cost of such analysis.

 

  

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10.           INDEMNIFICATION

10.1      SMITHS.  Except to the extent that UNITED is required to indemnify SMITHS under Section 10.1 of this Agreement, SMITHS shall defend and hold UNITED and its Affiliates, as well as its shareholders, directors, officers, employees and agents harmless from any and all liability, costs, claims and expenses, including reasonable attorney’s fees, arising from third party claims for death or injury to person or damage to tangible property as a consequence of a defective Product manufactured and supplied by SMITHS under this Agreement, unless the defect is caused by the Raw Materials provided by UNITED to SMITHS.

SMITHS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES SUSTAINED OR INCURRED BY UNITED IN CONNECTION WITH THE PRODUCT SUPPLIED HEREUNDER.  THE WARRANTIES SET OUT IN THIS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANT ABILITY AND FITNESS FOR A PARTICULAR PURPOSE.  SMITHS DISCLAIMS ALL OTHER EXPRESS OR IMPLIED WARRANTIES.

10.2      UNITED shall defend, indemnify and hold SMITHS and its Affiliates, their shareholders, directors, officers, employees and agents harmless from and against any and all liability, loss, damage, causes of action, suits, claims, demands, settlements, costs and expenses or judgments of any nature whatsoever, resulting from the Product or their marketing, sale, clinical testing, clinical use or other use (or misuse), including any design defect, failure to warn or other product liability or intellectual property claims, except to the extent SMITHS is required to indemnify UNITED under Section 10.1 of this Agreement.

10.3           Defense Control.  To the extent a party shall be required to indemnify the other party; such indemnifying party shall have control of the defense and settlement thereof, but no party shall settle a claim that admits fault on the part of the other party without such party’s written consent, not to be unreasonably withheld or delayed. The obligation to indemnify shall be applicable so long as the indemnified party gives prompt notice of the claim to the indemnifying party and provides the indemnifying party with such assistance as is reasonably required under the facts and circumstances.

11.           CONFIDENTIALITY

11.1      General.   Each party shall hold in strictest confidence all information supplied by the other party (“Discloser”), including but not limited to all written material, product samples, Specifications, drawings, designs, plans, layouts, forecasts, product formulations, business plans and financial information, procedures, computer programs, models, prototypes or other information of any description (“Confidential Information”) received from the other party (the “Discloser”) for a period of seven (7) years after the date of disclosure. During the period of confidentiality, the receiving party (“Recipient”) agrees not to divulge any of the Confidential Information to any third party (except to employees and legal or financial advisors on a need-to-know basis, all of whom shall be required by Recipient to be bound by the same degree of confidentiality as Recipient), nor to use the Confidential Information for any purpose other than as agreed by the disclosing party.

11.2      Confidential Information may be disclosed either orally or in writing, including graphic material and electronic, magnetic or other data, may be disclosed either orally or in writing to an employee of the Recipient on a need to know basis only.  When disclosed in writing, the information will be labeled as confidential by the Discloser.  When disclosed orally, such information will be identified as confidential at the time of disclosure, with subsequent confirmation in writing referencing the type of information disclosed. Regardless of whether such information is labeled or confirmed in writing, any such information that would be known to a reasonable person under the circumstances shall be deemed Confidential Information.  Confidential Information shall not be deemed to include:

	
  

	
(a)

	
information which is or becomes generally available to the public otherwise than through a breach of this Agreement;

	
  

	
(b)

	
information which Recipient can establish, by its written records, was in its possession prior to the disclosure hereunder, or was developed independently of any disclosure hereunder; or

  

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(c)  information which is approved in writing by the Discloser for release by Recipient.

11.3      It is understood and agreed that the disclosure of Confidential Information by the Discloser shall not grant Recipient any express, implied or other license or rights to patents or trade secrets of the Discloser (including any subsidiary or Affiliate thereof), nor shall it constitute any sort of joint venture or undertaking between the parties.

11.4      Recipient shall secure documents, information, items of work-in-process and work products that embody Confidential Information in the same manner that it secures its own confidential information of like sensitivity.  In addition, Recipient shall maintain reasonable procedures to prevent loss of any confidential or proprietary documents.  In the event of any loss, the Discloser shall be promptly notified of such loss.

11.5      Recipient agrees to return all Confidential Information, including all copies thereof upon written demand by the Discloser.

11.6      All materials, drawings, designs, specifications, notes, memoranda, or data furnished shall be and remain the property of the Discloser.

11.7      Recipient shall not be in breach of this Agreement if it discloses Confidential Information pursuant to a demand by a court or judicial or governmental authority of proper jurisdiction (including the FDA) with which Recipient is obliged to comply, provided Recipient will provide Discloser with reasonable notice of such demand and take such steps as Discloser may reasonably request to assist Recipient in obtaining a protective order preventing or limiting the disclosure and/or any other measures requiring that the Confidential Information be protected.

12.           TERM AND TERMINATION

12.1      Term.  This Agreement shall be binding on both parties as of the Effective Date specified above and, unless terminated in accordance with Section 12.2 or 12.3 below, shall remain in full force and effect for 6 years from the date UNITED receives FDA approval of its application to market the Product (“Term”). The Term may only be extended by mutual written agreement of the parties.

12.2      Automatic Termination.  Unless UNITED has not received FDA approval of its application to market the Product and provided notice to this effect to SMITHS by the end of the business day on March 31, 2015, this Agreement will automatically terminate at the end of the business day on March 31, 2015.

12.3      Early Termination. Without prejudice to any other rights that it may have hereunder or by law or in equity, either party may terminate this Agreement immediately by written notice to the other party upon the occurrence of any of the following:

	
(a)  

	
the other party becomes insolvent or an order for relief is entered against the other party under any bankruptcy or insolvency laws or laws of similar import;

	
(b)  

	
the other party makes an assignment for the benefit of its creditors or a receiver or custodian is appointed for it or its business is placed under attachment, garnishment or other process involving a significant portion of its business; or

	
(c)  

	
the other party is guilty of a material breach of its undertakings or warranties under this Agreement and, after thirty (30) days written notice from the terminating party specifying the breach and stating its intent to so terminate, fails to cure the breach.

In addition to the termination rights above, UNITED shall have the right to terminate this agreement within 10 days after its initial visit to SMITHS manufacturing facility (but no later than March 1, 2015 if no visit takes place before that date), should Smiths’ Vernon Hills manufacturing site have any negative changes to its accreditation, its manufacturing facility, its ability to manufacture Product in accordance with cGMPs, or if any Form 483s are issued by the FDA and go unresolved as per required FDA guidelines.

 

  

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12.4      Effect of Termination.  Termination of this Agreement shall not release either Party from fulfilling any obligations it may have incurred prior to such termination.  Notwithstanding such termination or expiration, the provisions set forth in the Sections 3.3, 7.1, 7.2, 8.1, 8.5, 10, and 11 shall survive termination of the Agreement. Upon the expiration or termination of this Agreement, SMITHS shall reasonably cooperate with UNITED in the transfer of production of the Product to such production facility designated by UNITED whereby UNITED shall bear cost and expense of transferring said Product and equipment and, subject to UNITED’s reimbursement of all costs reasonably incurred by SMITHS, provide reasonable technical and regulatory assistance, with a view to the continued supply to UNITED of Product as contemplated by this Agreement.  Notwithstanding anything herein, termination shall not relieve UNITED of its obligations to pay for Product ordered prior to the termination notice nor shall either Party be relieved by virtue of a notice of termination of any of their obligations that by their nature survive termination of this Agreement.

13.           RECALL

13.1      Product Recall.  In the event (i) any national government authority or other regulatory agency issues a request, directive or order that the Product be recalled, or (ii) a court of competent jurisdiction orders such a recall, or (iii) UNITED reasonably determines after consultation with SMITHS that the Product should be recalled because the Product does not conform to the specifications at the time of shipment by SMITHS, or (iv) UNITED reasonably determines that the Product should be recalled for any reason, the parties shall take the appropriate actions to effect the recall.  UNITED shall be responsible for bearing all costs associated with a recall unless such recall results primarily from the breach of SMITHS’s express warranty under Article 7.1 of this Agreement in which case SMITHS shall be responsible for all the reasonable expenses of recalling the Product (including, but not limited to notification and shipping charges and man-hours spent arranging, coordinating and conducting the recall).

 

13.2      Recall Administration and Product Returns.  UNITED will be responsible for all returns and all aspects of any recall except as provided in Article 13.1 above.  Procedures for handling returns will be covered by communications from UNITED to SMITHS. UNITED will reimburse SMITHS for any and all reasonable expenses incurred by SMITHS in processing and/or disposing of any returns unless such returns are deemed to be the responsibility of SMITHS in accordance with article 13.1 above.

14.           ADVERSE REACTION RESPONSIBILITY

14.1      General.  Except where SMITHS is obligated by law to author a notification, UNITED will be solely responsible for processing and providing all legally required notification to the proper authorities for all adverse reaction and/or complaint calls and or correspondence related to the Product.  UNITED will notify SMITHS in writing of all adverse reactions and/or complaints related to alleged defects with the Manufacturing of the Product. SMITHS shall have the right to participate in and direct all responses related to the packaging and quality of Product Manufactured by SMITHS. SMITHS agrees to report per its standard operating procedures by phone and in writing material adverse  complaints including complaints of adverse reactions to the Product or in relation to SMITHS’s Manufacturing of the Product, regardless of what is being alleged.

15.           GENERAL PROVISIONS

15.1      Force Majeure.  Neither party hereto shall be responsible or liable in any way for failure or delay in carrying out the terms of this Agreement (other than the obligation to make payment for Products delivered) resulting from any cause or circumstance beyond its reasonable control, including, but not limited to, fire, flood, other natural disasters, war, terrorism, interruption of transit, accident, explosion, civil commotion, inability of SMITHS to obtain raw materials or packaging materials (in the event this occurs, the parties will mutually agree to work together to resolve the situation as quickly as possible), and acts of any governmental authority; provided, that the party so affected shall give prompt notice thereof to the other.  No such failure or delay shall terminate this Agreement, and each party shall complete its obligations hereunder as promptly as reasonably practicable following cessation of the cause or circumstances of such failure or delay; provided however, that if any of the above conditions continues to exist for more than 90 days after the date of notice given with regard thereto, either party may terminate this Agreement forthwith upon notice to the other.

  

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15.2      No Agency.  Neither party is, nor will it be deemed to be, an agent or legal representative of the other party for any purpose.  Neither party will be entitled to enter into any contracts in the name of, or on behalf of the other party, nor will a party be entitled to pledge the credit of the other party in any way or hold itself out as having authority to do so.

15.3      Choice of Law and Jurisdiction.  This Agreement, along with the schedules attached, incorporated and referenced herein and all purchase orders issued hereunder shall be governed and interpreted, and all rights and obligations of the parties shall be determined, in accordance with the laws of the State of New York, without regard to its conflict of laws rules.  Any dispute, controversy or claim under this Agreement shall be brought in a court of competent subject matter jurisdiction in New York, and both parties agree to accept the personal jurisdiction of such court. Both Parties knowingly and willingly waive their respective right to a trial by jury in any action or proceeding related to this Agreement.

15.4      Notices.  All notices, requests, demands, waivers, consents, approvals or other communications to any party hereunder shall be in writing and shall be deemed to have been duly given if delivered personally to such party or sent to such party by facsimile transmission or by registered or certified mail, postage prepaid, to the addresses set forth below (or to such other address as the addressee may have specified in notice duly given to the sender as provided herein):

If to SMITHS:

 

SMITHS Medical

330 Corporate Woods Parkway

Vernon Hills, IL  60061

Attn:  Robert Turoff, Director of Operations

Facsimile:  847-793-0320

With copy to:

SMITHS Medical

Office of General Counsel

1265 Grey Fox Road

St. Paul, MN  55112

If to UNITED:

Ken Globus

General Counsel

230 Marcus Blvd.

Hauppauge, NY 11788

Such notice, request, demand, waiver, consent, approval or other communications will be deemed to have been given as of the date so delivered, sent by facsimile transmission, or five (5) days after so mailed.

15.5      Severability.  In the event that any pro­vision of this Agreement shall be found in any juris­diction to be in violation of public policy or illegal or unenforceable in law or equity, such finding shall in no event invalidate any other provision of this Agreement in that jurisdiction, and this Agreement shall be deemed amended to the minimum extent required to comply with the law of such jurisdiction.

15.6      Entire Agreement.  This Agreement, along with any schedules attached, incorporated and referenced herein, states the entire agreement reached between the parties hereto with respect to the transactions contemplated hereby and may not be amended or modified except by written instrument mutually agreed and signed by the parties and attached hereto.  To the extent of any conflict therein, the terms of the Quality Agreement shall take precedence over all other terms, provisions, documents, schedules, or exhibits of this Agreement, while the terms of Schedule B shall take precedence over all other terms, provisions, documents, schedules or exhibits of this Agreement with the exception of the Quality Agreement.

15.7.     No Waiver.  The failure of either party hereto to enforce at any time, or for any period of time, any provision of this Agreement shall not be construed as a waiver of such provision or of the right of such party thereafter to enforce each and every provision.  Any waiver by a party of any of its rights under this Agreement shall be in writing signed by such party.

  

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15.8      Assignment, Binding Effect.  Neither party shall assign this Agreement nor any of its respective rights or obligations here­under without the prior written consent of the other party, which consent will not be unreasonably withheld, conditioned or delayed except to any Affiliate in which event no consent from the other party is required or as otherwise permitted hereunder.  UNITED may, however, assign this Agreement to any third party that acquires UNITED’s rights in the Product, provided the assignee shall have the resources to comply with all of UNITED’s obligations and shall agree in writing to be bound by the terms of this Agreement. Either party may assign this Agreement in connection with a sale of all or substantially all of its assets.   SMITHS will assign this Agreement to any third party that acquires SMITHS.  In the event of an acquisition of SMITHS by any third party or discontinuation of SMITHS’s manufacturing operations at its Vernon Hills location, UNITED may move or take possession of any equipment at any SMITHS location that it owns or has purchased, directly or indirectly, pursuant to SMITHS completing the terms of this Agreement.  Any attempted assignment except as provided herein shall be void and ineffective.  This Agreement and the rights herein granted shall be binding upon and shall inure to the benefit of UNITED and SMITHS and their respective successors and permitted assigns.

15.9     Headings.  All section headings contained in this Agreement are for convenience of reference only, do not form a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement.

15.10   Counterparts.  This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument.

15.11   Amendments.  No modification, alteration or amendment of this Agreement shall be binding upon the parties unless contained in a writing signed by a duly authorized agent for each respective party and specifically referring hereto.

 

15.12   Judicial Proceeding.  If any judicial proceeding is necessary to enforce or interpret the terms of this agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and expenses in addition to any other relief to which such party is entitled.

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the day and year first above written.

 

	
UNITED-GUARDIAN, INC.

	
SMITHS MEDICAL ASD, INC.

 

	
BY: ______________________________

	
BY: ____________________________

	
NAME: Ken Globus

	
NAME:

	
TITLE:  President

	
TITLE:

	
DATE: ____________________________

	
DATE: __________________________

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