Document:

exv10w35

 

Exhibit 10.35

CONFIDENTIAL TREATMENT REQUESTED.

CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE

BEEN REDACTED AND HAVE BEEN SEPARATELY FILED

WITH THE COMMISSION.

EXCLUSIVE MARKETING AGREEMENT

This Agreement, dated as of December 5, 2005, is made and entered into by and between: Alkem
Laboratories Ltd, a company incorporated under the laws of the Republic of India (hereinafter
referred to as “Alkem”) and Oculus Innovative Sciences, Inc., a company incorporated under the laws
of the State of California, USA (hereinafter referred to as “Supplier”);

WHEREAS:

	 	(a)	 	the Supplier has represented to Alkem that they are in the business of manufacturing
a ‘super oxidized solution’ (the ‘Product’) for use as a disinfectant, sterilant
application, etc;
	 
	 	(b)	 	Alkem is a well diversified pharmaceutical company having interalia its own research,
manufacturing and marketing facilities. Further, Alkem also sells various hospital
supplies and medical devices and has considerable experience in the marketing, sale and
servicing of such supplies and devices;
	 
	 	(c)	 	the Supplier has represented to Alkem that, in relation to the Product, they have
proprietary rights in a US patent bearing number 60/533,583 and its derivative filings
through September 15 2005, and which is more particularly identified by them as “The
Microcyn Technology” (the ‘Technology’);
	 
	 	(d)	 	the Supplier has represented to Alkem that their aforesaid patented technology also
enjoys statutory patent protection in numerous other countries;
	 
	 	(e)	 	the Supplier has represented to Alkem that they have made a PCT application in
respect of their aforesaid patent, wherein India is a designated country. Further, the
Supplier has represented to Alkem that they have entered the ‘National Phase’ in India,
and that they shall take all steps necessary to secure patent protection for their
Microcyn Technology in India and Nepal;
	 
	 	(f)	 	the parties to this agreement have, in Phase I of their relationship, entered into a
Memorandum Of Understanding dated the 19th of September 2005.

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	 	(g)	 	as envisaged in the said MOU, this Exclusive Marketing Agreement marks the
commencement of Phase II in the relationship between the parties to this agreement;
	 
	 	(h)	 	in this Phase II the Supplier desires that Alkem market, distribute and sell the
Supplier’s proprietary/patented products in the Territory, and Alkem desires to market,
distribute and sell the Supplier’s proprietary/patented products in the said Territory in
accordance with the terms and conditions set forth in this Agreement; and
	 
	 	(i)	 	as envisaged in the aforementioned MOU, the Supplier and Alkem have agreed that they
during Phase II of their relationship the parties shall initiate discussions as regards
Phase III of their relationship wherein it is proposed that the parties take steps to
manufacture the Supplier’s proprietary/patented product/s in India, either through Alkem
or through a Joint Venture;

CONSEQUENTLY THE PARTIES HEREBY AGREE AS FOLLOWS:

	1	 	DEFINITIONS
	 
	 	 	In this Agreement the following terms and expressions shall have the meaning set out
below.

	 	 	 
	Alkem

	 	Shall mean Alkem Laboratories Ltd; a company
incorporated in India under the Companies Act 1956,
having its registered office at Exhibition Road,
Patna — 800 001, and its corporate office at ALKEM
HOUSE, Dev Ashish, Near Matulya Centre, SB Marg,
Lower Parel, Mumbai — 400 013, India.
	 
	 	 
	Field

	 	Shall mean the field of use for applications
consistent with the laws and customs of the
Territory and consistent with the product claims of
Supplier.
	 
	 	 
	Order

	 	Shall mean an order for Supplier’s Products
submitted by Alkem.
	 
	 	 
	Price Schedule

	 	Shall mean the schedule of prices for the Supplier’s
Products as agreed upon by the parties, in writing,
from time to time. The current Price Schedule is
set forth in

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	 	Annexure A hereto.
	 
	 	 
	Sub-Distributor

	 	Shall mean any third party (including stockists)
appointed by Alkem to act for Alkem in marketing,
selling and distributing Supplier’s Products in the
Territory for use in the Field under this Agreement
pursuant to Section 2.2.
	 
	 	 
	Supplier

	 	Shall mean Oculus Innovative Sciences, Inc., a
California Corporation, having its principal place
of business at: 1129 N. McDowell Blvd. Petaluma, CA
94954, USA
	 
	 	 
	Supplier Improvements

	 	Shall mean any improvements, modifications,
developments or additions of the Products. Supplier
Improvements shall not include any improvement,
modification, development or addition developed
solely for use in an application outside the Field
or for a specific customer at the expense of such
customer.
	 
	 	 
	Product/s

	 	Shall mean the current list of Supplier’s Products
and Pricing attached in Annexure A.
	 
	 	 
	Term

	 	Shall mean the term of this Agreement as set forth
in Section 10 of this Agreement.
	 
	 	 
	Territory

	 	Shall mean The Republic of India, and the Kingdom of
Nepal. Alkem may not re-export Supplier’s Product
beyond the Territory without written consent of
Supplier.

	2	 	MARKETING AGENCY
	 
	2.1	 	Supplier hereby appoints Alkem, and Alkem hereby accepts its appointment, as the
exclusive Marketing Partner/Company for the Supplier’s Products in the Field throughout the
Territory, with the right to import, market, re-package, sell, and distribute Supplier’s
Products for use in the Field throughout the Territory in accordance with the terms and
conditions of this Agreement. Alkem agrees to

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	 	 	use all commercially reasonable efforts to successfully market Supplier’s Products
throughout the Territory for use in the Field on a continuing basis throughout the Term.

	2.2	 	Alkem may appoint third parties as sub-distributors, to act for Alkem in selling and
distributing Supplier’s Products in the Territory for use in the Field as under this
Agreement. Alkem shall be and remain fully responsible for each sub-distributor’s activities
and the compliance by such sub-distributors of Alkem’s covenants and obligations under this
Agreement. Any shipment by Supplier to any of Alkem’s sub-distributors made at the specific
request of Alkem shall be invoiced by Supplier to Alkem directly.
	 
	2.3	 	Alkem shall not have any right to actively export, market, sell, distribute or use, or
authorize any sub-distributor to export, market, sell, distribute or use, any Supplier’s
Product outside of the Territory or for any use outside of the Field.
	 
	3	 	MINIMUM PURCHASE VOLUMES
	 
	3.1	 	Alkem shall use commercially reasonable efforts to place orders with the Supplier for
delivery of Supplier’s Products in quantities as per the minimum volumes set forth in
Annexure B.
	 
	4	 	ORDERING , SHIPPING AND DELIVERY 
	 
	4.1	 	Subject to the terms of payment, the Supplier shall execute and deliver Alkem’s orders within
8 (weeks) weeks from the receipt of the order by the Supplier. Each of Alkem’s orders shall
specify: (a) the product ordered, (b)the quantity of Product ordered; (c) the applicable
purchase prices; and (c) delivery due date.
	 
	4.2	 	Alkem shall on or prior to the end of each year provide the Supplier with a quarterly
non-binding rolling forecast of its orders for the products to be shipped by Supplier in each
of the months covered by the forecast.
	 
	4.3	 	Supplier shall use its best commercially reasonable efforts to deliver the products in
accordance with the applicable orders. Unless otherwise specified, Supplier shall deliver all
Supplier’s Products under this Agreement CIF Mumbai shipped from Supplier’s facilities in
Petaluma, California, USA; or Sittard, The Netherlands.
	 
	4.4	 	Should the Supplier fail to deliver the ordered quantity of the product to Alkem within
*** weeks of the stated delivery schedule, Alkem shall be entitled to a *** of *** on the ***.
	 
	4.5	 	While Alkem shall be responsible for all packaging and labeling of Supplier’s Products
sold in the territory, the Supplier shall be responsible for all such aspects of the packaging
and labeling clearance in respect of which has been

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

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	 	 	prior obtained by Alkem from the Supplier. Alkem shall ensure that all packaging and
labeling shall be in conformity with the statutory requirements within the Territory.
	 
	5	 	PRICING AND PAYMENT
	 
	5.1	 	The purchase price for each Supplier’s Product purchased by Alkem under this Agreement shall
be determined in accordance with the Price Schedule as at Annexure A.
	 
	5.2	 	Supplier shall issue invoices for any Supplier’s Products purchased by Alkem and, Alkem shall
pay each of Supplier’s invoices in accordance with the terms and conditions as stated in
Annexure B.
	 
	6	 	MARKETING, SALES AND SERVICES
	 
	6.1	 	Alkem shall broadly consult the Supplier in connection with the marketing, re-packaging, sale
and distribution of Supplier’s Products under this Agreement, and the Supplier shall extend
all possible support in the marketing of the products in the Territory. Without limiting the
generality of the foregoing, Alkem shall prepare and submit to Supplier, at least ninety (90)
days prior to the commencement of each financial Year, a written plan for the marketing, sale
and distribution of Supplier’s Products under this Agreement in the Territory. Alkem’s plan
shall include, without limitation: (a) a description of the promotional, advertising and
other marketing activities planned by Alkem for each division within the Territory (b) a
budget and schedule for such activities; (c) Alkem’s best estimate of anticipated sales of
Supplier’s Products in each division within the Territory and (d) a description of any
training or other support to be provided by Alkem. While Alkem shall use all commercially
reasonable effort to comply with the plan for each year, the Supplier shall, on Alkem’s
request, provide all reasonable support, including staff training and costs thereof.
	 
	6.2	 	Alkem shall supply all sales and marketing material in the Field (included, but not limited
to translation of promotional literature marketing materials manuals and other documentation
for the Microcyn Technology); provided that as and where necessary, all such material shall be
prepared by Alkem in consultation with the Supplier. Supplier shall supply Alkem, as
reasonably, requested from time to time, information required in order to prepare sales and
marketing materials.
	 
	6.3	 	Alkem shall comply with all applicable laws and regulations relating to the import,
marketing, sale and distribution of Supplier’s Products under this Agreement (including,
without limitation, any applicable requirements under the laws, regulations, acts, executive
orders of The Republic of India and the Kingdom of Nepal.)

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	6.4	 	During the Term and for a period of 2 (two)
years after the end of the Term, Alkem shall keep and
maintain records of all sales and other distributions
of Supplier’s Products made by Alkem or its
Sub-distributors, sufficient to effectively,
efficiently and economically implement any recall of
any Supplier’s Product. Upon Supplier’s request,
Alkem shall make such records available to Supplier
and otherwise cooperate as reasonably required to
effectively, efficiently and economically implement
any recall.
	 
	6.5	 	The Supplier shall ensure that Supplier’s
Product when delivered to Alkem, or to any of its
distributors as the case may be, shall have an expiry
period of not less than 15 (fifteen) months.
	 
	6.6	 	Upon Supplier’s request, Alkem shall provide a
sales status report for the period requested.
	 
	7	 	INTELLECTUAL PROPERTY RIGHTS
	 
	7.1	 	The Supplier shall be the owner of and hereby reserves any and all patents, trade secrets,
trademarks and other intellectual property rights with respect to Supplier’s Products
(including, without limitation, any and all Supplier Improvements.
	 
	7.2	 	During the tenure of this agreement, Alkem shall, as the Supplier’s exclusive licensed user
within the territory, be entitled to use and commercially exploit, in relation to the Product,
the Supplier’s patents, trade secrets, trademarks and other intellectual property rights.
	 
	7.3	 	Within the Territory and in relation to the Supplier’s product, Alkem may at its
option, and in consultation with the Supplier as to the manner of use, exploit any of the
Supplier’s trademarks or Alkem may develop and adopt its own trademarks for use upon and in
relation to Suppliers products. Further, Alkem may at its option also opt for co-branding of
the Supplier’s products. All trademarks, copyrights and other intellectual property developed
by Alkem in relation to the Supplier’s products shall be the property of Alkem at all times
and Alkem shall be entitled to register the same in its name.
	 
	7.4	 	Alkem shall immediately notify the Supplier of any infringement, misuse,
misappropriation or violation of any patent, trade secret, trademark or other intellectual
property rights of the Supplier that comes to Alkem’s attention. In the event of any such
infringement, misuse, misappropriation or violation, the Supplier shall have exclusive control
over the commencement, prosecution and settlement of any legal proceeding to enforce, recover
damages on account of or obtain other relief with respect to any infringement, misuse,
misappropriation or violation of any patent, trade secret, trademark or other intellectual
property rights of the Supplier. In connection with any such legal proceeding in the
Territory, Alkem shall provide such assistance related to such proceeding as

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	 	 	Supplier may reasonably request (including, without limitation, in enforcing any judgment,
settlement or order made in connection with such proceeding); provided that Supplier shall
reimburse the expenses reasonably incurred by Alkem to provide such assistance in
accordance with Supplier’s request for the same.

	7.5	 	In the event that the Supplier, subsequent to receiving a notification from Alkem of
intellectual property violation/s as hereinabove stated, fails to initiate or launch any
proceedings in respect of any infringement, misuse, misappropriation of the aforesaid
intellectual property of the Supplier, Alkem may initiate any proceeding/s as it deems
appropriate to prevent the said infringerment, misuse or misappropriation. Costs in respect of
such proceedings shall be reimbursed by the Supplier to Alkem or Alkem may adjust the same
against the Supplier’s invoice.
	 
	8	 	INSPECTIONS, RETURNS, REPRESENTATION, WARRANTIES AND REMEDIES
	 
	8.1	 	In the event of any shortage, damage, discrepancy to or in relation to the Supplier’s
Products, or in the event of product expiry, or in the event that any Supplier’s Product fails
to comply with the warranty set forth in Section 8.4 below, Alkem shall without unreasonable
delay report the same to the Supplier and shall furnish such written evidence or other
documentation as the Supplier reasonably may deem appropriate and which is in the possession
of Alkem. Alkem may return only such Supplier’s Product that is damaged prior to delivery or
is subject to discrepancy or fails to comply with the warranties setforth in section 8 below.
Further, Alkem may at its option either request the Supplier to promptly deliver, at the
Supplier’s cost, replacement of the Supplier’s Products, or may request the Supplier for a
credit against future purchases.
	 
	8.2	 	The Supplier warrants that the claims made by them in relation to patents and various
intellectual properties are valid. It is further clarified that the relationship between the
parties, in relation to the product, proceeds on the footing that supplier’s intellectual
property rights are valid and the same would be sustained during the term of the this
Agreement.
	 
	8.3	 	Supplier warrants to Alkem that the use, sale, offer for sale or import of Supplier’s
Products in accordance with this Agreement shall not infringe any patents, trade secrets,
trademarks or other intellectual property rights of any third party. The warranty set forth
in this Section 8 shall not apply to use of Supplier’s Product not in accordance with the
applicable manuals, instructions, label claims, and other documentation provided by Supplier,
where use of Supplier’s Product in accordance with such manuals, instructions and other
documentation would have avoided the infringement.

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	8.4	 	Supplier warrants to Alkem that the Supplier’s Product sold to Alkem under this Agreement
shall, when delivered to Alkem, have a shelf life of not less than 15 months, and shall also
meet the then effective and agreed upon specifications and shall be free from quality defects.
Further, the Supplier shall guide Alkem as regards the correct procedure/methodology to be
followed by Alkem during re-packaging of the product and shall also provide Alkem with
specifications in respect of the container quality and volume so as to ensure that the
re-packaged product maintains a shelf-life of not less than 12 months from the date of
re-packaging.
	 
	8.5	 	Supplier hereby extends to any original purchaser of a Supplier’s Product from Alkem or its
Sub-distributors pursuant to the terms of this Agreement a warranty against defects in product
quality. Supplier shall be responsible for and shall bear all costs in respect of the
replacement of Supplier’s Products that prove to be defective. The warranty set forth in this
Section 8 shall in respect of each Supplier’s Product delivered hereunder expire upon the
earlier of (a) the sterilization expiration date for the applicable Supplier’s Product, or
(b) the completion of the first use of the applicable Supplier’s Product. If compulsory law
in any jurisdiction within the Territory requires warranties, which are more favorable to the
purchaser than stated in the foregoing sentence, Alkem shall notify Supplier hereof in
writing. Should Supplier not accept to extend the warranty in accordance with compulsory
requirements in the relevant jurisdiction, Supplier shall without undue delay inform Alkem
hereof in writing, in which case the parties shall as soon as reasonably possible thereafter
negotiate in good faith a solution acceptable to both parties.
	 
	8.6	 	Supplier’s representations and warranties set forth in this section 8 are exclusive and in
lieu of any and all other warranties, express or implied (including, without limitation, any
implied warranties of merchantability or fitness). the remedies set forth in this section 8
are exclusive and in lieu of any and all other remedies for any breach of supplier’s
representations and warranties set forth in this section 8.
	 
	8.7	 	Supplier’s obligation to indemnify Alkem for any consequential damages on account of any
breach of Supplier’s representations and warranties under this section 8 shall be in
accordance with clause 9.1 of this Agreement.
	 
	9	 	INDEMNITY AND INSURANCE
	 
	9.1	 	Supplier shall indemnify, defend and hold harmless Alkem from and against and in respect
of any and all demands, claims, actions or causes of action, assessments, losses, damages,
liabilities, interest, penalties, costs and expenses (including without limitation, reasonable
legal fees and disbursements) resulting from, arising out of, or imposed upon or incurred by
Alkem by reason of (i) any breach of any representation or warranty of Supplier set forth in
paragraph 8 of this Agreement; (ii) total or partial recalls of Supplier’s Products; or (iii)
any

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	 	 	bodily injury caused by any alleged defects in product performance/quality of Supplier’s
Products. Supplier shall maintain product liability insurance in such amounts as is
advisable pursuant to ordinary good business practice for a similar company in a similar
type of business, and shall provide Alkem with evidence of this coverage upon written
request.

	9.2	 	Alkem shall indemnify, defend and hold harmless Supplier from and against and in respect of
any and all demands, claims, actions or causes of action, assessments, losses, damages,
liabilities, interest, penalties, costs and expenses (including without limitation, reasonable
legal fees and disbursements) resulting from, arising out of, or imposed upon or incurred by
Supplier by reason of (i) any breach of Alkem’s obligations under this Agreement; (ii) product
claims, representations or warranties, whether written or oral, made or alleged to be made, by
Alkem in its advertising, publicity, promotion or sale of any Supplier’s Product where such
product claims, representations or warranties were not provided by or approved by Supplier;
(iii) any infringement, misuse, misappropriation or violation of any intellectual property
right of any third party by any trademark of Alkem; or (iv) negligent handling by Alkem of
Supplier’s Products. Alkem shall maintain product liability insurance in such amounts as is
advisable pursuant to ordinary good business practice for a similar company in a similar type
of business, and shall provide Supplier with evidence of this coverage upon written request.
	 
	10	 	TERM
	 
	10.1	 	Unless otherwise terminated in accordance with Section 10 hereof, this Agreement shall have
an initial term commencing upon signature of this Agreement and ending upon the fifth
anniversary of the date of this Agreement (the “Initial Term”).
	 
	10.2	 	At the end of the Initial Term, this Agreement may be renewed by the parties for such
additional term and upon such terms and conditions as the parties may agree to in writing.
	 
	11	 	EARLY TERMINATION
	 
	11.1	 	This Agreement shall be subject to early termination:

	(i)	 	by either party at any time upon one hundred-eighty (180) days advance written notice to the
other party if the other party fails to fulfill its obligations under this Agreement and such
failure is not remedied within thirty (30) days from having received a request for such
remedial action from the non-defaulting party;
	 
	(ii)	 	by Alkem, at its option, should the Supplier be unable to sustain the intellectual
property warranties made to Alkem; or where the term of the intellectual property expires
during the validity of this agreement; or where the rights

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	 	 	afforded by any intellectual property are restricted in any manner; or where the
intellectual property rights are revoked during the term of this Agreement;

	(iii)	 	by Alkem, at its option, if the Supplier fails to execute Alkem’s orders within the time
schedules mentioned in the purchase order.
	 
	(iv)	 	by either party immediately upon written notice if the other party should become insolvent
or start negotiations about composition for the benefit of its creditors, if a petition for
bankruptcy should be filed by or against the other party and is, in the latter, not dismissed
within sixty (60) days or if the other party makes an assignment of all or a material part of
its assets for the benefit of its creditors, other than an assignment given as security in
connection with a loan or other borrowing on marketable terms by such party.
	 
	11.2	 	In the event of a change in control of fifty (50%) percent or more of the outstanding stock
or assets of Alkem, Supplier may, at its option, terminate this Agreement.
	 
	11.3	 	In the event of a change in management/control of the Supplier company, the Supplier shall
take all necessary actions to ensure that the said change does not affect the working of this
agreement.
	 
	12	 	EFFECTS OF TERMINATION
	 
	 	 	Upon expiration or termination of the Term, the following shall
apply:
	 
	12.1	 	Unless otherwise agreed upon by the parties, each party shall fulfill its obligations under
any and all Orders entered into by the parties during the Term in accordance with Section 4;
provided, however, that, in the event of any termination pursuant to Section 11.1(ii) or
(iii), the terminating party may, at its option, cancel any outstanding Orders by giving the
other party written notice of such cancellation.
	 
	12.2	 	The parties’ respective rights and obligations with respect to any breach of this Agreement
during the Term shall survive.
	 
	12.3	 	The parties’ respective rights and obligations under Sections 7, 8, 11, 12, 14, 15, 16 and 17
shall survive.
	 
	12.4	 	Post the tenure of this agreement (whether by way of early termination or expiry), Alkem
would continue to use and commercially exploit the Supplier’s intellectual properties until
exhaustion of all stocks of the Supplier’s products by Alkem and or its sub-distributors.
	 
	12.5	 	Except as otherwise specifically provided for in Section 11, neither party shall have
any liability (e.g., for any claim of damages, loss of revenue, profit or

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	 	 	compensation, for anticipated sales or
for any costs, expenses, investments or
other commitments made in reliance upon
or otherwise in connection with this
Agreement) to the other on account of
any expiration or termination of the
Term, other than any liability accruing
prior to the termination of this
agreement. Without limiting the
generality of the foregoing, neither
party shall have any right, either
express or implied by applicable law or
otherwise, to renewal of this Agreement
or to any damages or compensation for
any such termination.

	13	 	NON-COMPETITION
	 
	13.1	 	During the tenure of this agreement Alkem shall not, directly or indirectly (e.g., through
any of its affiliates), market sell, distribute any product that competes with Supplier’s
Products.
	 
	13.2	 	The obligations of Alkem set forth in this Section 13 shall not (i) extend to any activity or
business currently carried out, directly or indirectly, by Alkem and (ii) apply if and to the
extent such obligations are not permitted or enforceable under applicable laws.
	 
	14	 	FORCE MAJEURE
	 
	14.1	 	Force Majeure shall mean any event or condition, not existing on the date of signature of
this Agreement, not reasonable foreseeable as of such date and without control of either
party, which prevents, in whole or in material part, the performance by one of the parties of
its obligations hereunder, such as an act of God, act of government, war or related actions,
civil insurrection, riot, sabotage, general strike, general lockout, epidemic, fire flood
windstorm and similar events.
	 
	14.2	 	Upon giving notice to the other party, a party affected by an event of Force Majeure shall be
released without any liability on its part from the performance of its obligations under this
Agreement, except for the obligation to pay any amounts due and owing hereunder, but only to
the extent and only for the period that its performance of such obligations is prevented by
the event of Force Majeure.
	 
	14.3	 	During the period that the performance by one of the parties of its obligations under
this Agreement has been suspended by reason of an event of Force Majeure, the other may
likewise suspend the performance of all or part its obligations hereunder to the extent that
such suspension is commercially reasonable.

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	15	 	MISCELLANEOUS
	 
	15.1	 	Confidentiality
	 
	15.1.1	 	During the term of this Agreement and for a period of five (5) years thereafter, each party
undertakes not to disclose to any third party any Confidential Information (as defined below)
that the party receives from the other party and shall not be used for any other purpose than
is required in order to fulfill its obligations under this Agreement.
	 
	15.1.2	 	For the purpose of this Agreement, Confidential Information shall include any and all
technical, financial, business or other information disclosed by one party to the other
verbally, in writing or in any other way, including without limitation documents, data or
information related to products, technologies, know-how and trade secrets, provided that
Confidential Information shall not include:
	 
	(i)	 	information which the receiving party can show was known by the receiving party at the time
of disclosure;
	 
	(ii)	 	information which at the time of disclosure is in the public domain or which is published
after disclosure or otherwise becomes part of the public domain through no fault of the
receiving party;
	 
	(iii)	 	information which the receiving party can show was received by it from a third party who did
not to the best knowledge of the receiving party acquire the information , directly or
indirectly, from the disclosing party under an obligation of confidence.
	 
	15.1.3	 	Alkem shall ensure that any Sub-distributor shall accept a similar confidentiality
undertaking.
	 
	15.2	 	Relationship Between Parties

This Agreement does not make either party the employee, agent or
legal representative of the other for any purpose whatsoever. Neither
party is granted any right or authority to assume or create any
obligation or responsibility, expressed or implied, on behalf of or
in the name of the other party. In fulfilling its obligations
pursuant to this Agreement, each party shall be acting as an
independent contractor.
	 
	15.3	 	Headings
	 
	 	 	The titles and headings to Sections herein are inserted for
the convenience of reference only and are not intended to be a
part of or affect the meaning or interpretation of this
Agreement.

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	15.4	 	Notice
	 
	15.4.1	 	All notices or other communications to a party hereto required or permitted hereunder shall
be deemed to be given if in writing and delivered personally or sent by facsimile (with
confirmation of transmission) or certified mail (return receipt requested) to such party at
the following addresses (or at such other addresses as shall be specified by like notice):
	 
	 	 	If to Supplier:
	 
	 	 	Oculus Innovative Sciences, Inc

1129 N. McDowell Blvd.

Petaluma, CA 94954, USA

	 
	 	 	 
	 
	 	 	If to Alkem, to:
	 
	 	 	Alkem Laboratories Ltd;

ALKEM House,

Dev Ashish,

Near Matulya Centre,

S.B.Marg, Lower Parel, Mumbai — 400013, India
	 
	15.4.2	 	All notices shall be deemed to be given on the day when actually delivered as provided above
(if delivered personally or by facsimile) or on the day shown on the return receipt (if
delivered by mail) or on the second day following delivery to a reputable courier.
	 
	16	 	GOVERNING LAW
	 
	 	 	This Agreement shall be governed, construed and enforced in accordance
with the laws of the United Kingdom. In the event of any
differences/disputes arising out of the performance of this Agreement,
the parties hereto agree that the same shall be settled through
discussions between them. If the differences/disputes remain
unresolved thereafter, the same would be settled through an
arbitration proceeding, to be held in London, under the substantive
law/s of the United Kingdom.

	17	 	ENTIRE AGREEMENT
	 
	 	 	This Agreement constitutes the entire agreement with respect to
the appointment of Alkem as Supplier’s Marketing
Partner/Company. No amendment, modification or waiver of any of
the provisions of this Agreement shall be valid unless set forth
in a written instrument signed by the party to be bound thereby.

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This Agreement has been executed in two (2) copies of which the parties have taken one each.

	 	 	 	 	 	 	 	 	 
	SUPPLIER	 	 	 	ALKEM
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jim Schutz
	 	 
	 	By:
	 	/s/ Samprada Singh
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Vice President and General Counsel	 	 	 	Chairman
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	  12/5/2005
	 	 	 	Date:
	 	  12/5/2005
	 

	 	 
	 	 	 	 	 	 

Page 14 of 16

 

ANNEXURE A

TO THE

EXCLUSIVE MARKETING AGREEMENT

Between: Oculus Innovative Sciences, Inc. And Alkem Laboratories Ltd.

Description of Supplier Product/s and Pricing:

Note: Product/s brand name may be changed by mutual agreement.

	(1)	 	Product is a Superoxidized Water known as Microcyn Technology and other trade names as
listed on Supplier’s US and International web sites which may be accessed via www.oculusis.com

	 	 	 	Price for bulk shipment (in 40 FT Containers) orders is:
$USD ***/liter CIF Mumbai, shipped from Petaluma, California, USA. Or Sittard, The
Netherlands PLUS ***% Royalty on the CIF value of the goods.

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

Page 15 of 16

 

ANNEXURE B

TO THE

EXCLUSIVE MARKETING AGREEMENT

Between : Oculus Innovative Sciences, Inc. And Alkem Laboratories Ltd

Minimum Purchase Volumes to maintain pricing as established in Annexure A

Delivery Schedule to be as follows:

1.

	 	 	 	 	 
	Ordering Date	 	Product QTY	 	Terms
	 
	 	 	 	 
	Prior to December 31, 2005 *

	 	*** liters
	 	LC 120 days usance
	 
	 	 	 	 
	Prior to December 31, 2005 *

	 	*** liters
	 	LC 180 days usance

	*	 	subject to Alkem receiving the necessary regulatory clearances
	 
	2.	 	During the calendar year 2006 and in every subsequent year till the tenure of this
agreement, Alkem’s yearly purchase of the Supplier’s product shall reflect a minimum ***%
year-on-year growth. The payment by Alkem to the Supplier for the said purchases shall be by
irrevocable letter of credit *** days usance.

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

Page 16 of 16exv10w36

 

Exhibit 10.36

(Translation from Spanish)

(On the left hand margin of each page of the document appear several sets of initials)

AGREEMENT ENTERED INTO BY MR. JORGE AHUMADA AYALA AND FERNANDO AHUMADA AYALA, IN THEIR OWN
RIGHT, HEREINAFTER JOINTLY REFERRED TO AS “THE PLAINTIFF”, AND BY THE PUBLIC ACCOUNTANT,
EVERARDO GARIBAY RAMIREZ, AS ATTORNEY-IN-FACT OF THE COMPANY NAMED: OCULUS TECHNOLOGIES OF
MEXICO, S.A. DE C.V. (CORPORATION OF VARIABLE CAPITAL), HEREINAFTER REFERRED TO AS “THE
DEFENDANT”, IN ACCORDANCE WITH THE FOLLOWING REPRESENTATIONS AND CLAUSES:

REPRESENTATIONS

	 	I.	 	“THE PLAINTIFF” represents in its own right:

	 	a)	 	To be individuals of Mexican nationality, with legal capacity for the entering
into of this agreement.
	 
	 	b)	 	To be the titleholders of trademark registry number: 594389 “MICROMYCIN®”.
	 
	 	c)	 	To have filed, before the Mexican Institute of Industrial Property, the
proceeding in order to

 

 

	 	 	 	obtain the administrative-law declaration of infringement against “Oculus Technologies
of Mexico, S.A. de C.V. based on the grounds provided for in sections I and IV of
article 213 of the Industrial Property Law, under file number P.C. 421/2005
(I-310)8735, which it agrees to conclude by means of the relinquishment of the claim
and of the corresponding proceeding.

	 	d)	 	That it is its wish to enter into this agreement with “THE DEFENDANT”, in order
to definitively conclude the dispute specified in paragraph c) hereinabove, without the
existence of pressure, fraud, bad faith or any other vice of consent.
	 
	 	II.	 	“THE DEFENDANT” represents, though its attorney-in-fact:
	 
	 	a)	 	That its client is a corporation incorporated in accordance with the laws of the
United Mexican States, as confirmed in original instrument number 3,605, dated April 30,
2003, executed before Mr. Armando G. Manzano Alba, head of notary public’s office number
one of the State of Michoacán.

 

 

	 	b)	 	That it holds the necessary and sufficient powers for the entering into of this
agreement, as confirmed in public instrument number 95370, dated November 30, 2005,
executed before Mr. Francisco Javier Arce Gargollo, head of notary public’s office
number 74 of the Federal District, which henceto have by no means been revoked or
modified.
	 
	 	c)	 	That it is its wish to enter into this agreement with “THE PLAINTIFF”, in order
to definitively conclude with the motion established in clause five of this agreement,
the dispute specified in point I, paragraph c) hereinabove, without the existence of
pressure, fraud, bad faith or any other vice of consent.
	 
	 	 	 	Both parties assert that they have freely negotiated the terms and conditions of this
agreement, without the existence of any vice of consent that could cause it to be
invalid or null, wherefore this agreement is entered into in accordance with the
following:

 

 

CLAUSES

ONE: “THE DEFENDANT” is bound, given that it is in its best interests, before “THE PLAINTIFF”
to cease to utilize the name Microcyn 60, or any other name that is the same or similar in
degree of confusion to trademark: 594389 “MICROMYCIN®, which is printed on the labels of the
product, within the term not exceeding one year as from the signing date of this agreement.

TWO: The term specified in the above clause may be used by “THE DEFENDANT” in order to
perform the processes and acts needed to register a distinct trademark before the Mexican
Institute of Industrial Property, at the sole discretion of “THE DEFENDANT”, as well as to
undertake the application processes, corresponding to the product, before the Federal Board
for Protection against Health Risks.

THREE: The phases in which “THE DEFENDANT” shall perform the processes and acts needed to
change the name of its product Microcyn 60 for a distinct trademark, are the following:

 

 

	 	 	 	 	 
	FIRST PHASE
	COMMENCEMENT	 	 	 	PROBABLE
	DATE	 	ACTIVITY	 	CONCLUSION DATE
	WEEK OF AUG/01/2006

	 	COMMENCEMENT OF THE

APPLICATION PROCESS OF

THE TRADEMARK

REGISTRATION WITH THE

IMPI (MEXICAN INSTITUTE

OF INDUSTRIAL PROPERTY)
	 	ESTIMATE OF SIX MONTHS

IN ORDER TO OBTAIN THE

RESULT OF THE

APPLICATION PROCESS

	 	 	 	 	 
	SECOND PHASE
	COMMENCEMENT	 	 	 	PROBABLE
	DATE	 	ACTIVITY	 	CONCLUSION DATE
	WEEK OF FEB/05/2007

	 	COMMENCEMENT OF THE

APPLICATION PROCESS AT

COFEPRIS (FEDERAL BOARD

FOR PROTECTION AGAINST

HEALTH RISKS)
	 	ESTIMATE OF SIX MONTHS

FOR THE APPROVAL OF THE

CHANGE OF NAME AND

LABELS

	 	 	 	 	 
	THIRD PHASE
	COMMENCEMENT	 	 	 	PROBABLE
	DATE	 	ACTIVITY	 	CONCLUSION DATE
	WEEK OF AUG/01/2007

	 	FIRST PRODUCT

DELIVERIES WITH NEW

LABELING INCLUDING THE

CHANGE OF NAME
	 	FOLLOWING WEEKS

 

 

FOUR: Upon completion of the year referred to in clause one of this agreement, “THE
DEFENDANT” should begin to make the first deliveries to businesses of the product with new
labeling, which shall include a trademark different from the name: Microcyn 60, or another
name that is not similar in degree of confusion to trademark: 594389 “MICROMYCIN®, while
fully abiding by the stipulations of this meeting of the minds.

FIVE: Upon the signing of this agreement, “THE PLAINTIFF” is bound before “THE DEFENDANT” to
file, in the administrative-law declaration of infringement proceeding before the Mexican
Institute of Industrial Property, Divisional Office for the Protection of Intellectual
Property, Divisional Sub-office for the Prevention of Unfair Competition, Departmental
Coordination of Inspection and Supervision, File P.C. 421/2005 (I-310)8735, for the
relinquishment of the claim and the corresponding proceeding, without reserving any action or
right to exercise against “THE DEFENDANT”, by virtue of the entering into of this agreement.
This provision shall be invalid if “THE DEFENDANT” continues to use the

 

 

product showing the Microcyn 60 trademark after one year as from the signing of this
agreement.

Furthermore, it is the responsibility of “THE PLAINTIFF” to by no means permit the company:
Laboratorios Dermatológicos Darier, S.A. de C.V. to file any similar proceeding against “THE
DEFENDANT” regarding the Microcyn 60 product and by virtue of this meeting of minds.

SIX: “THE DEFENDANT” is bound to pay “THE PLAINTIFF” the sum of $80,000.00 (Eighty Thousand
Mexican Pesos 00/100) in order to recover legal costs, which shall be paid within fifteen
days following the date on which “THE DEFENDANT” receives the corresponding receipt and/or
invoice.

SEVEN: Upon termination of the term specified in clause one, and only in case “THE DEFENDANT”
continues manufacturing and labeling the product with the name Microcyn 60 or another similar
name in degree of confusion to trademark 594389 “MICROMYCIN®, following the termination of
the aforementioned term of one year, both parties agree to establish as liquidated damages
the sum of $100,000.00 (one hundred thousand Mexican Pesos

 

 

00/100) per month, which “THE DEFENDANT” is bound to pay in favor of “THE PLAINTIFF” during
the time “THE DEFENDANT” continues labeling the product with the aforementioned name.

EIGHT: On its part, “THE PLAINTIFF” promises and is bound with “THE DEFENDANT” not to
directly or indirectly use the name: Microcyn 60 or another name similar in degree of
confusion.

Both parties agree to ratify this agreement before the Mexican Institute of Industrial
Property.

NINE: There exists no custom, use or practice against the terms and conditions of this
agreement. Any modification of the expressly agreed matters shall only be effective between
the parties if the respective agreement is recorded in writing and signed by all the parties.

TEN: For all matters regarding the fulfillment and execution of this agreement, the parties
specify the following domiciles:

 

 

“THE PLAINTIFF”: Insurgentes Sur 3579, Torre 3, 8th floor, offices 801-804,
Tlalpan Residential Zone, Tlalpan City District, Zip Code 14020, in Mexico, Federal District.

“THE DEFENDANT”: Industria Vidriera number 81, Zapopan Norte Industrial Development, Zip Code
45130, Zapopan, Jalisco.

ELEVEN: For the interpretation and compliance with the agreement, the parties expressly
submit themselves to the authority of the Mexican Institute of Industrial Property,
Divisional Office for the Protection of Intellectual Property, Divisional Sub-office for the
Prevention of Unfair Competition, Departmental Coordination of Inspection and Supervision.
The foregoing is for all corresponding legal effects.

The parties agree with the content of this agreement and it is signed on four copies in
Mexico City, Federal District, this July 31, 2006.

	 	 	 
	By “THE PLAINTIFF”

	 	By “THE DEFENDANT”
	(Signed)

	 	(Signed)
	 
	 	 
	Mr. Jorge Ahumada Ayala

	 	Public Accountant, Everardo
	 

	 	Garibay Ramirez

 

 

By
“THE PLAINTIFF”

(Signed)

Mr. Fernando Ahumada Ayala

WITNESSES

	 	 	 
	By “THE PLAINTIFF”

	 	By “THE DEFENDANT”
	 
	(Signed)

	 	(Signed)
	 
	 	 
	Mr. Arturo Dominguez Vargas

	 	Mr. José Luis Camacho Lozano

 

 

(Translation from Spanish)

(Emblem):

IMPI

Mexican Institute of Industrial Property

(Stamp):

MEXICAN INSTITUTE OF INDUSTRIAL PROPERTY

Divisional Office for the Protection

of Intellectual Property

Folio: 14983

Date: SEP/22/2006 – Time: 15:37

File: P.C. 421/2005(I-310)8735

-Illegible- 579125

(Barcode): -Illegible-

DIVISIONAL OFFICE FOR THE PROTECTION

OF INTELLECTUAL PROPERTY.

DIVISIONAL SUB-OFFICE FOR THE PREVENTION

OF UNFAIR COMPETITION.

DEPARTMENTAL COORDINATION OF

INSPECTION AND SUPERVISION.

REG. 011834

 

 

JORGE AHUMADA AYALA AND

FERNANDO AHUMADA AYALA.

VS.

OCULUS TECHNOLOGIES OF MEXICO, S.A. DE C.V.

TRADEMARK: 594389 MICROMYCIN.

P.C. 421/2005(I-310)8735.

MATTER: THE ABANDONMENT OF THIS PROCEEDING BY RENOUNCEMENT IS DECLARED.

MR. SALVADOR CHAVEZ OSEGUERA.

ATTORNEY-IN-FACT OF JORGE AHUMADA AYALA AND

FERNANDO AHUMADA AYALA.

CALLE DE ORIENTE 107 No. 4606,

COL. GERTRUDIS SANCHEZ, 2DA. SECCION,

DEL. GUSTAVO A. MADERO,

C.P. 07839, MEXICO, D.F.

Having seen the document presented at the filing office of the Divisional Office for the
Protection of Intellectual Property of this Institute on September 21, 2006, with entry folio
011834, by Mr. Salvador Chávez

 

 

Osequera, in representation of JORGE AHUMADA AYALA AND FERNANDO AHUMADA AYALA, and by Mr.
Everardo Garibay Ramírez, in representation of OCULUS TECHNOLOGIES OF MEXICO, S.A. DE C.V.
whereby the former relinquishes the request of administrative-law declaration of
infringement, specifying that an agreement has been entered into with the presumed infringer,
dated July 31, 2006, while attaching the original thereof for the corresponding legal
effects, which is signed in agreement by Mr. Everardo Garibay Ramírez, attorney-in-fact of
OCULUS TECHNOLOGIES OF MEXICO, S.A. DE C.V. the following is agreed.

The document in question is formally placed on record, by Mr. Salvador Chávez Oseguera, in
representation of JORGE AHUMADA AYALA AND FERNANDO AHUMADA AYALA, with his legal capacity
being accredited in the records, relinquishing the aforementioned proceeding, by virtue of
the fact that an agreement was entered into with the supposed infringer in July 31, 2006, as
well as Mr. Javier Santos Ríos, attorney-in-fact of OCULUS TECHNOLOGIES OF MEXICO, S.A. DE
C.V. whose legal capacity is accredited in the records, signing in agreement, the
relinquishment and, given that from the aforementioned agreement, which was

 

 

attached in original to the document in question, the following is seen in CLAUSE FIVE: “Upon
the signing of this agreement, “THE PLAINTIFF” is bound before “THE DEFENDANT” to file, in
the administrative-law declaration of infringement proceedings before the Mexican Institute
of Industrial Property, Divisional Office for the Protection of Intellectual Property,
Divisional Sub-office for the Prevention of Unfair Competition, Departmental Coordination of
Inspection and Supervision, File P.C. 421/2005 (I-310)8735, for the relinquishment of the
claim and the corresponding proceeding, without reserving any action or right to exercise
against “THE DEFENDANT”, by virtue of the entering into of this agreement. This provision
shall be invalid if “THE DEFENDANT” continues to use the product showing the Microcyn 60
trademark after one year as from the signing of this agreement.” Consequently, with the
existence of said agreement between the parties for the relinquishment in question, based on
articles 1, 2 and 57, section II of the Federal Code of Administrative-law procedure, and
article 373, sections I and II of the Federal Code of Civil Procedure; it is resolved:

ONE: The abandonment of this proceeding is declared, due to the asserted and duly grounded
reasons.

 

 

TWO: Kindly archive the file specified at the head of this document, as a full and
definitively concluded matter.

THREE: Let this resolution be known to the parties.
This document is signed in Mexico City, Federal District, based on article 6, sections IV, V
and XXII, Articles 7 bis, 184, 187, 188, 193, 191, 192 bis and 215, Headings Six and Seven
and other applicable articles of the Industrial Property Law; articles 1 and 2 and other
applicable articles of the Federal Code of Administrative-law procedure, and articles 1, 70,
80, 129, 197 and 202 of the Federal Code of Civil Procedure, supplying deficiency; articles 1
and 3, section V, paragraph c), subparagraph i), first and second lines, articles 4, 5 and
11, last paragraph and article 14 of the Regulations of the Mexican Institute of Industrial
Property; articles 1, 3, 4, 5, 18, 25, 26 and 32 of the Organic Bylaws of the Mexican
Institute of Industrial Property, and articles 1, 3, and 7, sections c), e) and r) and last
paragraphs of the Agreement that confers powers upon the Assistant General Directors,
Coordinator, Divisional Directors, Incumbents of the Regional Offices, Divisional Deputy
Directors, Departmental Coordinators and other employees of the Mexican Institute of

 

 

Industrial Property, with said laws being published in the Official Gazette on August 2,
1994, August 4, 1994 (reformed on May 30, 2000), February 24, 1943, December 14, 1999
(reformed and added to by Decree published on July 15, 2004, whose errata was published on
the 28th of the same month and year), December 27, 1999 (reformed and added to by
agreement published on July 29, 2004, whose clarification note was published on August 4,
2004), and December 15, 1999 (reformed by agreement published on July 29, 2004, whose
clarification note was published on August 4, 2004).

YOURS SINCERELY

THE DIVISIONAL DEPUTY DIRECTOR FOR THE

PREVENTION OF UNFAIR COMPETITION

(Signed)

MS. MARÍA GUADALUPE LAZCANO XOXOTLA

With copy: Everardo Garibay Ramírez, Attorney-in-fact of OCULUS TECHNOLOGIES OF MEXICO, S.A.
DE C.V. Río Rhin No. 56, Penthouse 2, Col. Cuauhtémoc, Delegación Cuauhtémoc, C.P. 06500,
Mexico, D.F. For his knowledge.

RCL/CAP (Initials)

Periférico
Sur No. 3106, Col. Jardines del Pedregal, C.P.01900.

Switchboard: 5624-0400

 

 

(Translation from Spanish)

(Stamp):

MEXICAN INSTITUTE OF INDUSTRIAL PROPERTY

Divisional Office for the Protection

of Intellectual Property

Folio: 011834

Date: SEP/21/2006 – Time: 13:45

File: P.C. 421/2005(I-310)8735

ATTACHED DOCUMENT:

TRANSFER

PROMOTION

823412

REGISTERED TRADEMARK: 594389 MICROMYCIN

DIVISIONAL OFFICE FOR THE PROTECTION

OF INTELLECTUAL PROPERTY.

DIVISIONAL SUB-OFFICE FOR THE PREVENTION

OF UNFAIR COMPETITION.

DEPARTMENTAL COORDINATION OF

INFRINGEMENTS AND CRIMES

HEAD OF THE MEXICAN

INSTITUTE OF INDUSTRIAL PROPERTY

 

 

     I, SALVADOR CHAVEZ OSEGUERRA, Lawyer for and in representation of JORGE AHUMADA AYALA
and FERNANDO AHUMADA AYALA, with such legal capacity being accredited in the “P.C”. specified
hereinabove, with all due respect to appear before you in order to assert:

     I, EVERARDO GARIBAY RAMIREZ, as attorney-in-fact of OCULUS TECHNOLOGIES OF MEXICO, S.A.
DE C.V. with such legal capacity being accredited in the “P.C”. specified hereinabove, with
all due respect to appear before you in order to assert:

     That having reached a satisfactory arrangement for both parties, under the terms of the
agreement entered into on July 31, 2006, we appear in order to exhibit same for its due
approval and inclusion in the corresponding file.

     Furthermore, and based on the provisions of article 373, section II of the Civil Code of
Procedure, supplying deficiency to the Industrial Property Law, JORGE AHUMADA AYALA and
FERNANDO AHUMADA AYALA, in representation of the undersigned, do hereby fully relinquish the

 

 

proceeding against OCULUS TECHNOLOGIES OF MEXICO, S.A. DE C.V. given that it is in their
bests interests which I represent.

     Due to the foregoing, I kindly request you, the HEAD THE MEXICAN INSTITUTE OF INDUSTRIAL
PROPERTY, to:

     ONE: To formally enter my appearance on record, in the name and representation of JORGE
AHUMADA AYALA and FERNANDO AHUMADA AYALA, relinquishing the proceeding given that it is in
the interests of my clients, under the terms of the agreement attached hereto for all
corresponding legal effects.

     TWO: To formally enter my appearance on record, in the name and representation of OCULUS
TECHNOLOGIES OF MEXICO, S.A. DE C.V., and to formally place on record the acceptance of the
relinquishment, for the effects established in article 373, section II of the Civil Code of
Procedure, supplying deficiency to the Industrial Property Law and under the terms of the
exhibited agreement.

Mexico, Federal District, this September 21, 2006.

 

 

THANK YOU FOR YOUR CONSIDERATION OF THIS LETTER

	 	 	 
	(Signed) 

MR. SALVADOR CHAVEZ 

OSEGUERA 

Attorney-in-fact of 

MR. JORGE AHUMADA AYALA and 

MR. FERNANDO AHUMADA AYALA
	 	(Signed)

PUBLIC ACCOUNTANT: EVERARDO

GARIBAY RAMIREZ

Attorney-in-fact of

OCULUS TECHNOLOGIES OF

MEXICO, S.A. DE C.V.

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