Document:

EXHIBIT 10.22

 

	
 
    	
[*]         Certain   confidential information contained in this document, marked by brackets, has   been omitted and filed separately with the Securities and Exchange Commission   pursuant to Rule 406 of the Securities Act of 1933, as amended.
    

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT (the “Agreement”) is effective as of the 13th day of June,  2005 (the “Effective Date”), between Corium International, Inc. (“Corium”), located at 2686 Middlefield Rd., Suite G, Redwood City, California 94063 and The Procter & Gamble Company (hereinafter along with its Affiliates, referred to as “P&G”) located at One Procter & Gamble Plaza, Cincinnati, Ohio 45202. P&G and Corium may each be referred to as a “Party” and collectively as the “Parties.”

 

WHEREAS, P&G is engaged in the business of developing, manufacturing, marketing, distributing, selling and supporting a range of consumer products;

 

WHEREAS, Corium is the owner or has certain rights in certain patents, marks and technology as is more particularly set out in Exhibit A;

 

WHEREAS, P&G wishes to obtain, and Corium is willing to grant to P&G, an exclusive license to the Corium Patents (as defined in Paragraph 1.5) and Corium Technology (as defined in Paragraph 1.7) according to the terms and conditions of this Agreement;

 

WHEREAS, Corium will retain certain rights to the Corium Patents and Corium Technology according to the terms and conditions of this Agreement;

 

WHEREAS, the Parties have entered into a Product Development and Services Agreement dated 13, 2005 (the “Services Agreement”), under which Corium will provide P&G with certain testing, research, development, prototype production and manufacturing, and other services as may be requested by P&G;

 

NOW, THEREFORE, in consideration of the foregoing and other mutual promises hereinafter set forth and for other good and valuable consideration, the Parties hereto agree as follows:

 

1.                                      DEFINITIONS

 

1.1                               “Affiliate” means any corporation, limited liability company or other legal entity which directly or indirectly controls, is controlled by, or is under common control with P&G or 

 

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its successors or assigns, or any successor or assign of such an entity.  For the purpose of this Agreement, “control” shall mean the direct or indirect ownership of at least fifty percent (50%) of (i) the income, (ii) the outstanding shares on a fully diluted basis or other voting rights of the subject entity to elect directors, or if not meeting the preceding, any entity owned or controlled by or owning or controlling at the maximum control or ownership right permitted in the country where such entity exists, or (iii) or such other arrangement as constitutes the direct or indirect ability to direct the management, affairs or actions of such entity.

 

1.2                               “Corium Core Field” means any products: (i) for which a prescription is required in the United States (other than prescription products related to tooth whitening); (ii) related to foot care, (iii) related to wound care, and (iv) the Current [*] Products (as defined herein). For the avoidance of any doubt, the Corium Core Field shall not cover or include any prescription or non-prescription tooth whitening products or non-prescription oral care products or formulations except for Current [*] Products. The Corium Core Field shall include any products: (i) of a type which was or would have been sold by prescription in the United States based on the regulatory practices existing in the United States as of the Effective Date (other than prescription products related to tooth whitening). The Corium Core Field shall not include the Corium Extended Field, the P&G Fields of Use or the P&G Primary Field of Use.

 

1.3                               “Corium Extended Field” means any product or activity that is outside the Corium Core Field and outside the P&G Fields of Use, as it exists at the relevant time.

 

1.4                               “Corium Know-How” means information and materials, whether confidential or not, having applicability in the P&G Field of Use owned by Corium or in which Corium has a transferable or Licensable Interest, as set forth in Paragraph 1.14, including technical knowledge, expertise, skill, practice, inventions, trade secrets, analytical methodology, clinical data, manufacturing knowledge, drawings, specifications, processes, techniques, samples, specimens, prototypes, designs, research and development results, safety and efficacy data, and other technical and scientific information.  Corium Know-How shall not include Microneedle Technology or other microporation, iontophoresis, or other advanced delivery technology and nanotechnology

 

1.5                               “Corium Patents” means those patents and patent applications having applicability in the P&G Fields Of Use in which Corium has ownership or has a transferable or  Licensable Interest, as set forth in Paragraph 1.14, including:  1) the patents listed in Exhibit A and any:  parent applications, continuations, continuations-in-part, divisionals, re-exams, reissues thereof; 2) any subsequent patents or patent applications having applicability in the P&G Fields of Use, including any Improvements to the Corium Technology that are not P&G Improvements; and 3), and any foreign equivalents of the foregoing.  Corium Patents shall not include Microneedle Technology or other microporation, iontophoresis, or other advanced delivery technology and nanotechnology.

 

1.6                               “Corium Retained Field” means the Corium Core Field and the Corium Extended Field. The Corium Retained Field shall not include the P&G Fields of Use or the P&G Primary Field of Use.

 

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1.7                               “Corium Technology” means the Corium Patents and the Technology.

 

1.8                               “Current [*] Products” means:  1) those oral care products using the Corium Technology that are currently marketed by [*], the names and ingredients of which are described in attached Exhibit B, or 2) any enhancements or Improvements to such currently marketed Current [*] Products incorporating the Corium Technology which Corium is contractually required to make for [*] for which Corium has begun development work on or before the Effective Date of this Agreement.  For the avoidance of doubt, the following are specifically excluded from the Current [*] Products:  1) the Corium Patents, and the Technology described therein, listed in Exhibit C; 2) the Generation IV Products generally described in attached Exhibit D; and 3) and the Generation V Products generally described in the attached Exhibit E.

 

1.9                               “First Tooth Whitening Product” means a pre-commercial tooth whitening product that incorporates Corium Technology, but the ultimate formulation shall be determined by P&G.

 

1.10                        “Generation IV Products” shall mean those products generally described in the attached Exhibit D.

 

1.11                        “Generation V Products” shall mean those products generally described in the attached Exhibit E.

 

1.12                        “Improvements” shall mean any and all technology or Intellectual Property rights in and to any update, modification, customization, translation, upgrade, improvement, enhancement and/or derivative work whether or not developed under the Services Agreement.

 

1.13                        “Intellectual Property” shall mean any and all intellectual property, including, without limitation, patents, copyrights, software, trade secrets, technology, inventions, specifications, know-how, processes, formulae, product descriptions and specifications and other technical or proprietary information, and all registrations and applications therefor.

 

1.14                        “Licensable Interest” shall mean any licensable interest, whether or not royalty-bearing, that exists prior to the Effective Date; any non-royalty bearing licensable interest that is licensed by Corium from any third party after the Effective Date; and any licensable interest, whether or not royalty-bearing, licensed by Corium from [*] after the Effective Date.

 

1.15                        “Licensed Product” means any device, compounds, ingredient, application, formulation, material, or product, which, but for the licenses granted, would infringe one or more valid claims of the Corium Patents or Corium’s Intellectual Property rights in the Technology.  Licensed Product shall include, without limitation, the Generation IV Products generally described in attached Exhibit D, the Generation V Products generally described in attached Exhibit E, and the technology or products described in Corium Patents set forth in attached Exhibit C.

 

1.16                        “Microneedle Technology” means the technology described in Exhibit F.

 

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1.17                        “P&G Fields of Use” means any and all fields of use and applications relating to or associated with the areas and lines of business in which P&G now or hereafter does business (including, without limitation, all fields related to P&G’s business units and product lines), as it exists at the relevant time, except for the Corium Core Field.  Without limiting the foregoing and for illustration purposes only, the P&G Fields of Use shall include, without limitation, all products related to tooth whitening, whether or not prescription based, as well as any non-prescription oral care applications, including the professional field such as dentists, denture adhesive products and products that may provide one or more of the following benefits, either on a stand-alone basis or as a combination: tooth whitening, anti-caries, anti-gingivitis, anti-bacterial, breath freshening or oral cavity pain relief for use in humans or animals.

 

The P&G Fields of Use include, but are not limited to, Personal and Beauty Care Products (e.g., antiperspirants/deodorants, colognes, cosmetics, feminine protection, hair care, hair color, personal cleansing, fragrances skin care, etc.); Household Care Products (e.g., dish care, car care, hard surface and household cleaners, cleaning appliances, laundry detergents and conditioners,  fabric refreshers, bleach and care for special fabrics, etc.), Baby and Family Care Products (e.g., diapers, baby and toddler wipes, baby bibs, baby change and bed mats, paper towels, toilet tissue, facial tissue, etc.); Pet Nutrition and Care, Health and Care; Water Purification Products, and Snacks and Beverages.  For clarity, the P&G Fields of Use include the P&G Primary Field of Use. It is understood that the P&G Fields of Use may expand, but not into the Corium Core Field, in the event P&G acquires another company.

 

1.18                        “P&G Primary Field of Use” means non-prescription oral care uses and prescription and non-proscription tooth whitening uses, excluding the Current [*] Products.

 

1.19                        “P&G Improvements” means Improvements to the Corium Technology invented or developed solely by P&G from information provided by Corium to P&G under this Agreement.

 

1.20                        “P&G Intellectual Property Rights” means any patents, trade secrets, copyrights, or other Intellectual Property rights owned or controlled by P&G.

 

1.21                        “Sublicensee” means any party to whom P&G has granted the right to: (i) manufacture, have manufactured, use, sell, offer for sale, import or otherwise dispose of Licensed Products; or (ii) exploit methods and processes covered by Corium Technology.

 

1.22                        “Technology” means any technology, now or in the future, in which Corium has an ownership interest or a transferable interest or Licensable Interest that has application in the P&G Fields of Use, including any Corium Know-How related thereto, except for the Microneedle Technology or other microporation, iontophoresis, or other advanced delivery technology and nanotechnology.

 

2.                                      LICENSE GRANTS

 

2.1                               License Grant to P&G.  Except with respect to rights to the Corium Technology in the Russian Federation as described in Paragraph 2.2 below and the rights reserved by Corium 

 

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in Paragraph 2.3 below, Corium hereby grants to P&G an exclusive, worldwide, right and license, with the right to sublicense, under all the Corium Technology to make, have made, use, import, sell and offer for sale Licensed Products within the P&G Fields of Use.  The license granted under this Paragraph 2.1 shall automatically become perpetual and irrevocable in the event P&G does not terminate this Agreement pursuant to Paragraph 11.1.

 

2.2                               Russian Federation Rights.  With respect to rights to the Corium Technology in the Russian Federation, Corium shall grant P&G the same right and license to any and all rights to the Corium Technology it may have in the Russian Federation, and Corium shall use its best efforts (including, without limitation, via an amendment of any existing agreements between Corium and [*]) to provide P&G full and exclusive access in the P&G Fields of Use to any additional or other Intellectual Property rights relating to the Corium Technology that may be owned or held by [*].

 

2.3                               Reserved Rights.  Corium retains the exclusive right under all Corium Technology to make, have made, use, sell, offer for sale and import products in the Corium Core Field and the Corium Extended Field and to sublicense such rights.

 

2.4                               Possible Corium License Within P&G Fields of Use

 

2.4.1               Any time after [*] from the Effective Date, Corium may request P&G to grant to Corium a license, with the right to sublicense, to the Corium Patents and/or Corium Technology for a specific product application which falls within the P&G Fields of Use, excluding the P&G Primary Field.  In the event that, at the time of such request, P&G neither (i) is commercializing such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits, in the P&G Fields of Use, whether directly or indirectly via a third party licensee, nor (ii) has an active plan to license, develop or commercialize such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits, in the P&G Fields of Use, P&G shall grant the license requested by Corium, subject to the payment obligations set forth in Paragraph 2.4.3.

 

2.4.2               Any time after the Effective Date, Corium may request P&G to grant Corium a license to the Corium Technology for a specific product application that was a non-prescription product within P&G Fields of Use as of the Effective Date but which becomes a prescription product as defined herein as of the date of Corium’s request to P&G under this Paragraph 2.4.2.  In the event that, at the time of such request, P&G neither (i) is commercializing such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits whether directly or indirectly via a third party licensee, nor (ii) has an active plan to license, develop or commercialize such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits in the Corium Extended Field, P&G may, at its discretion, grant Corium said license subject to the payment obligations set forth in Paragraph 2.4.3.

 

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2.4.3               Any license from P&G to Corium granted pursuant to Paragraph 2.4.1 will include the following financial provisions:

 

(a)                                 If Corium sublicenses a third party the rights to commercialize such specific product application, then P&G shall receive [*] of any revenues received by Corium from a third party sublicensee for use of the Corium Technology for such specific product application within the P&G Fields of Use.

 

(b)                                 If Corium elects to commercialize itself such specific product application, then P&G shall receive a [*] royalty based on Corium’s net sales of any such specific product application covered by said license from P&G to Corium. For purposes of this Paragraph 2.4.3, Corium’s net sales shall be defined as Corium’s invoice price, (f.o.b. factory), after deduction of [*] but before deduction of any other items, including but not limited to [*] (not to exceed [*]).

 

2.5                               Possible P&G License Within Corium Retained Fields.

 

2.5.1               Any time after the Effective Date, P&G may request to grant a third party a license to the Corium Technology for a specific product application which falls within the Corium Extended Field.  In the event that, at the time of such request, Corium neither (i) is commercializing such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits, in the Corium Extended Field, whether directly or indirectly via a third party licensee, nor (ii) has an active plan to license, develop or commercialize such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits in the Corium Extended Field, Corium shall grant the requested license, subject to the payment obligations set forth in Paragraph 2.5.3.

 

2.5.2               Any time after the Effective Date, P&G may request Corium to grant P&G a license to the Corium Technology for a specific product application that was a prescription product within the Corium Core Field as of the Effective Date but which is no longer a prescription product as defined herein as of the date of P&G’s request to Corium under this Paragraph 2.5.2.  In the event that, at the time of such request, Corium neither (i) is commercializing such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits whether directly or indirectly via a third party licensee, nor (ii) has an active plan to license, develop or commercialize such specific product application or a comparable product application having the same or comparable characteristics or delivering the same or comparable benefits in the Corium Extended Field, Corium may, at its discretion, grant P&G said license subject to the payment obligations set forth in Paragraph 2.5.3.

 

2.5.3               Any license from Corium to P&G granted pursuant to Paragraph 2.5.1 will include the following financial provisions:

 

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(a)                                 Corium shall receive [*] of any revenues received by P&G from a third party licensee for use of the Corium Technology for such specific product application within the Corium Extended Field.

 

2.6                               Trademark License.  Subject to P&G’s compliance with the terms and conditions of this Agreement, Corium grants to P&G a non-exclusive, non-transferable, non-sublicensable license to use the Corium trade names and trademarks specified in Exhibit G (the “Marks”), on the Licensed Products during the term of this Agreement, solely in connection with P&G’s or its designee’s manufacture, shipping, and distribution of the Licensed Products as contemplated in this Agreement.  All uses of the Marks by P&G and its agents must be in accordance with applicable law, with Corium’s then-current trademark usage guidelines, and be subject to Corium’s exercise of quality control.  P&G will not attach any additional trademarks to the Licensed Products other than any trade names and/or trademarks owned or controlled by P&G.  P&G acknowledges and agrees that Corium owns the Marks and that any and all goodwill associated with and symbolized by the Marks and other proprietary rights that are created by or that result from P&G’s use of the Marks hereunder inures to the benefit of Corium.  P&G will at no time contest or aid in contesting the validity or ownership of the Marks or take any action in derogation of Corium’s rights therein, including, without limitation, applying to register any trademark or trade name that is confusingly similar to any of the Marks for goods identical or similar to those covered by Corium’s trademark registrations listed in Exhibit G or to a mark that is a combination of any of the Marks and any of the Corium Marks.  P&G may, at its sole discretion, include Corium’s Marks on the Licensed Product or a statement that “this product includes ‘Corplex’” in a location to be determined by P&G.

 

2.7                               Decision Making.  P&G shall have the full and unrestricted right to make any and all decisions, in its sole discretion, surrounding its use of the Corium Technology, including, without limitation, the development, testing, marketing, manufacture, sourcing, packaging, sale, distribution, marketing and pricing of any Licensed Products in the P&G Fields of Use utilizing the Corium Technology, as well as whether or not to launch, market, promote, distribute and sell any product using or relying on the Corium Technology.

 

3.                                      TECHNOLOGY TRANSFER

 

3.1                               Corium Technology as of the Effective Date.  Corium shall disclose, transmit and deliver to P&G or its designee, orally, and in writing (including electronically), all of such Corium Technology described in Exhibit A relating to the field of tooth whitening on or before the expiration of one month from the Effective Date at no cost to P&G, including the patent applications for the Corium Patents and patent prosecution information.  Corium shall disclose, transmit and deliver to P&G or its designee, orally, and in writing (including electronically), all of such Corium Technology described in Exhibit A relating to P&G Fields of Use other than tooth whitening, including the patent applications for the Corium Patents and patent prosecution information, within a commercially reasonable period of time after the Effective Date.

 

3.2                               Corium Technology After the Effective Date.  Corium shall disclose to P&G or its designee all information concerning the conception or reduction to practice of any Corium inventions having applicability to the P&G Primary Field of Use that comes into existence after 

 

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the Effective Date, said disclosure occurring within a commercially reasonable period of time after said information comes into existence.  Corium shall disclose to P&G at P&G’s request, but no more often than twice a year, all information concerning the conception or reduction to practice of any Corium inventions, whether or not patentable, or any other documented development, concept, or product having applicability to the P&G Fields of Use other than the Primary Field of Use that comes into existence after the Effective Date.  Should P&G have an interest in evaluating or commercializing any invention, development, concept or product disclosed under this Paragraph 3.2, Corium shall disclose all information to P&G (including development and manufacturing information), at no cost to P&G up to five (5) business days per product, concept, development or invention, or its designee relating to the associated Corium Technology within a commercially reasonable period of time of P&G’s request to Corium.

 

4.                                      PAYMENTS.

 

In consideration for the license of the Corium Technology rights granted to P&G, P&G will make the following payments to Corium.  Each such payment will be one-time only payments, paid within [*] of the particular deadline or milestone event being met and achieved.  It is understood that no payments shall be due from P&G to [*] or to Corium on behalf of [*] under any circumstance under this Agreement or otherwise.

 

4.1                               Initial Payments.

 

4.1.1               First Signing Payment. On March 8, 2005 P&G paid [*] to Corium (the “Corium Technology Acquisition Advance”). Within thirty (30) days of signing this Agreement, P&G shall owe [*] to Corium (the “Signing Payment”).  The Corium Technology Acquisition Advance shall be credited against the Signing Payment with the effect that no payments shall be owed to Corium for the First Signing Payment.  The First Signing Payment under this Paragraph 4.1.1 shall be fully refundable to P&G in the event P&G terminates this Agreement pursuant to Paragraph 11.1.

 

4.1.2               Second Signing Payment.  In further consideration for the license rights granted herein to P&G, P&G shall pay Corium a one time sum of [*] as follows:

 

(a)                                 [*] on or before July 15th, 2005; and

 

(b)                                 [*] on or before September 15th, 2005.

 

(c)                                  The entire Second Signing Payment pursuant to this Paragraph 4.1.2 shall be fully refundable to P&G in the event P&G terminates this Agreement under Paragraph 11.1

 

4.2                               Product Launch Payments for Commercial Products

 

4.2.1               First Commercial Launch Payment.  In further consideration for the license rights granted herein to P&G, P&G shall pay Corium a product launch milestone payment in the amount of [*] on the terms and subject to the conditions set forth here below (the “First Commercial Launch Payment”).

 

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(a)                                 The First Commercial Launch Payment shall be earned and paid out to Corium as follows:  (i) [*] shall be paid by P&G to Corium if, acting in P&G’s sole discretion, a Launch Plan Agreement is signed by an officer of P&G, and (ii) [*] shall be paid by P&G to Corium if, acting in P&G’s sole discretion, a Launch Plan Authorization is signed by an officer of P&G.

 

(b)                                 The payment to Corium by P&G under Paragraph 4.2.1(a)(i) shall be made within thirty (30) days of the signing of the Launch Plan Agreement and the payment to Corium by P&G under Paragraph 4.2.1(a)(ii) shall be made within [*] of the signing of the Launch Plan Authorization.

 

(c)                                  For the avoidance of any doubt, Corium may only earn and shall only be entitled to receive one First Commercial Launch Payment and neither a First Commercial Launch Payment nor any other payments shall be due to Corium for any launches of a First Tooth Whitening Product or any other products outside the United States of America.

 

4.2.2               Second Commercial Launch Payment.  In further consideration for the license rights granted herein to P&G and the First Commercial Launch Payment, Corium may, subsequent to the milestones and conditions relating to the First Commercial Launch Payment being met and Corium being entitled to the First Commercial Launch Payment, earn another product launch milestone payment in the amount of [*] on the terms and subject to the conditions set forth here below (the “Second Commercial Launch Payment”).

 

(a)                                 The Second Commercial Launch Payment shall be earned by Corium on the date (the “Second Large Scale Production Date”) on which an officer of P&G executes a written launch authorization (or a successor document) for a national launch in the United States and the start of large scale production of a Second Oral Care Product incorporating Corium Technology at one of its, or its contractors, manufacturing facilities following Corium’s successful development and timely delivery to P&G of the Second Oral Care Product (as defined in Paragraph 4.2.2(d) below).

 

(b)                                 If and when earned by Corium, the Second Commercial Launch Payment shall be paid out to Corium as follows:  (i) [*] paid  by P&G to Corium within [*] of the Second Large Scale Production Date, and (ii) [*] paid by P&G to Corium within [*] of the shipment date of the Second Oral Care Product to P&G’s trade customers in the United States.

 

(c)                                  For the avoidance of any doubt, Corium may only earn and be entitled to receive one Second Commercial Launch Payment for the Second Oral Care Product and neither a Second Commercial Launch Payment nor any other payments shall be due to Corium for any launches of the Second Oral Care Product or any other products outside the United States of America.

 

(d)                           A “Second Oral Care Product” shall be defined as any product for use in the oral cavity, including a tooth whitening product, incorporating Corium Technology that differs significantly from the First Tooth Whitening Product with respect to the Corium Technology incorporated in the First Tooth Whitening Product.  For the avoidance of doubt, some 

 

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change in the Corium Technology between the First Tooth Whitening Product and the Second Oral Care Product is required to constitute a Second Oral Care Product under this Paragraph 4.2.2(d).  Non-limiting examples of a tooth whitening product that does not differ significantly from the First Tooth Whitening Product are tooth whitening products that incorporate only packaging changes; artwork changes; strip count changes; bonus packs; marketing promotions; changes to the size or shape of the backing strip or release liner; peroxide concentration changes that do not affect the stability or rheology of the product outside of expected statistical variation, the addition or elimination of minor excipients that do not affect the stability, rheology, or whitening efficacy of the product outside of expected statistical variation, and combinations thereof.  Non-limiting examples of a tooth whitening product that differs significantly from the First Tooth Whitening Product are [*].  A non-limiting example of a Second Oral Care Product, other than a tooth whitening product, that differs significantly from the First Tooth Whitening Product is [*].  Any changes, other than those enumerated above, shall be pre-negotiated by the Parties prior to the initiation of work as to whether the change constitutes a minor or significant change from the First Tooth Whitening Product.  The specifications, requirements and formulation of the Second Oral Care Product shall be determined by P&G. For the avoidance of any doubt, the Second Oral Care Product shall not include the First Tooth Whitening Product or the [*] Products.

 

4.2.3               Additional Commercial Products With Corium Involvement.  In further consideration of the license rights granted to P&G herein, Corium may earn for each Involved Additional Commercial Product a one-time launch milestone payment in the amounts set forth below (each an “Additional Commercial Launch Payment”), which shall be earned by Corium on the dates set forth below. Each such Additional Commercial Launch Payment may be earned by Corium, and if so earned shall be paid by P&G to Corium, as follows:

 

(a)                                 If, on the Additional Large Scale Production Start Date of an Involved Additional Commercial Product, such Involved Additional Commercial Product is  covered by one or more valid claims contained in any then issued United States patent contained in the Corium Patents, then:

 

(i)                                    Corium may earn [*] on the date (the “Additional Large Scale Production Start Date”) on which an officer of P&G executes a launch authorization (or a successor document for large scale production of such Involved Additional Commercial Product for a national launch in the United States at one of its, or its contractors, manufacturing facilities, which shall be paid to Corium within [*] of the Additional Large Scale Production Start Date, and

 

(ii)                                Corium may earn [*] on the first shipment date of such Involved Additional Commercial Product to P&G’s trade customers in the United States, which shall be paid to P&G within [*] of such first shipment date.

 

(iii)                            For the avoidance of any doubt, Corium may only earn and be entitled to receive, one Additional Commercial Launch Payment for each Involved Additional Commercial Product launched nationally in the United States and no Additional Commercial

 

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Launch Payment nor any other payments shall be due to Corium for any launches of any Involved Additional Commercial Product outside the United States of America.

 

(b)                                 If, on the Additional Large Scale Production Start Date of an Involved Additional Commercial Product, such Involved Additional Commercial Product is not covered by one or more valid claims contained in any then issued United States patent contained in the Corium Patents, then:

 

(i)                                    Corium may earn [*] on the Additional Large Scale Production Start Date of such Involved Additional Commercial Product for large scale production of such Commercial Product for a national launch in the United States at one of its, or its contractors, which shall be paid to Corium within [*] of Additional Large Scale Production Start Date, and

 

(ii)                                Corium may earn [*] on the first shipment date of such Involved Additional Commercial Product to P&G’s trade customers in the United States, which shall be paid to Corium within [*] of such first shipment date; and

 

(iii)                            Corium may earn an additional [*] on the date on which Corium receives, subject to P&G’s satisfactory confirmation and verification, an issued United States patent which contains one or more valid claims under which such Involved Additional Commercial Product is covered, which shall then be paid by P&G to Corium within [*] of notification by Corium to P&G of the issuance of such patent. P&G may, however, in its sole discretion, decide to waive the requirement for the issuance of a US patent registration which contains one or more valid claims under which such Involved Additional Commercial Product is covered, if P&G, in its sole discretion, deems that trade secret protection sufficient and adequate.

 

(iv)                             For the avoidance of any doubt, Corium may only earn and be entitled to receive, the payments set forth in Paragraphs 4.3.3(b) (i) through (iii) once for each Involved Additional Commercial Product launched nationally in the United States and no such payments nor any other payments shall be due to Corium for any launches of any Involved Additional Commercial Product outside the United States of America.

 

(c)                                  For purposes of this Paragraph 4.3.3, “Involved Additional Commercial Product” shall mean any compound, ingredient, application, formulation, material, or product in the P&G Fields of Use, other than the First Tooth Whitening Product and the Second Oral Care Product, which (i) has been developed by Corium and incorporates Corium Technology pursuant to a request by P&G, (ii) meets both the specifications as well as P&G’s product launch requirements provided to Corium by P&G, and (iii) which differs significantly from any prior Licensed Products incorporating Corium Technology with respect to the Corium Technology incorporated therein.  Non-limiting examples of products that do not differ significantly from prior products are products that only incorporate packaging changes, artwork changes, count or volume changes, bonus packs, marketing promotions, or combinations thereof.  Since as of the Effective Date the Parties have not yet identified any Licensed Products beyond the First Tooth Whitening Product, it is understood that it is premature to attempt to identify any other examples herein of what constitutes significant or minor differences, except where the 

 

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Involved Additional Commercial Product is a tooth whitening product in which case the non-limiting examples of Paragraph 4.2.2 (d) shall apply.  The Parties shall, however, mutually agree, prior to start of development work on an Involved Additional Commercial Product, what other changes shall constitute significant or minor changes under this Paragraph 4.3.3 for said product.

 

4.2.4               Additional Commercial Products Without Corium Involvement.  In further consideration for the license rights granted herein to P&G, Corium may earn an additional one-time launch milestone payment in the amount of [*] for each Non-Involved Additional Commercial Product launched nationally by P&G in the United States.  This payment shall be earned [*] after the first national shipment date of such Non-Involved Additional Commercial Product from P&G’s or its contractor’s manufacturing facilities to P&G’s trade customers in the United States, and shall be paid to Corium within [*] of such first shipment date.

 

4.2.4.1           For purposes of Paragraph 4.2.4, a “Non-Involved Additional Product” shall mean any compound, ingredient, application, formulation, material, or product in the P&G Fields of Use, other than the First Tooth Whitening Product and the Second Tooth Oral Care Product, which (i) has been developed without the assistance of Corium and which incorporates Corium Technology,  (ii) falls within one or more valid claims of a Corium Patent issued in the United States, and (iii) which differs significantly from any prior Licensed Products incorporating Corium Technology with respect to the Corium Technology incorporated therein.  Non-limiting examples of products that do not differ significantly from prior products are products that only incorporate packaging changes, artwork changes, count or volume changes, bonus packs, marketing promotions, or combinations thereof.  Since as of the Effective Date the Parties have not yet identified any Licensed Products beyond the First Tooth Whitening Product, it is understood that it is premature to attempt to identify any other examples herein of what constitutes significant or minor differences, except where the Non-Involved Additional Commercial Product is a tooth whitening product in which case the non-limiting examples of Paragraph 4.2.2 (d) shall apply.  The Parties shall, however, mutually agree, prior to start of P&G development work on a Non-Involved Additional Commercial Product, what other changes shall constitute significant or minor changes under this Paragraph 4.2.4 for said product.

 

5.                                      INTELLECTUAL PROPERTY OWNERSHIP

 

5.1                               Ownership by P&G.  All P&G Improvements shall be owned and retained by P&G.

 

5.2                               Ownership by Corium. Corium shall continue to own the Corium Technology and except as set forth herein, no other rights or licenses to the Corium Technology shall be granted to P&G, and Corium shall own any Intellectual Property rights in any Improvements to the Corium Technology that it makes, conceives or reduces to practice, provided that such Improvements shall be licensed to P&G in accordance with Section 2 of this Agreement.

 

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6.                                      PREPARATION AND PROSECUTION OF PATENT APPLICATIONS AND PAYMENT OF PATENT COSTS

 

6.1                               Corium Patents Set Forth In Exhibit A.  Except as provided in Paragraphs 6.1.1 and 6.5 below, Corium shall retain ultimate control over the preparation, filing, prosecution and maintenance of the Corium Patents set forth in Exhibit A.  While Corium shall retain ultimate control, Corium agrees, however, to consider in good faith and reasonably accommodate all requests P&G makes with respect to those filings, responses and maintenance.  Corium also agrees to keep P&G informed in accordance with Paragraph 6.3.

 

6.1.1               For any Corium Patents set forth in Exhibit C, Corium shall have ultimate control over the preparation, filing and prosecution of said Corium Patents except that P&G shall have ultimate control over the drafting of claims, and any arguments responsive to an official communication from a patent office related thereto, solely directed to the P&G Primary Field of Use.  Claims relating to the P&G Primary Field of Use shall be included in the Corium Patents of Exhibit C if requested by P&G or may be filed as a separate application if mutually agreed upon by the Parties.  In making any decisions regarding the drafting of claims and responsive arguments related thereto under this Paragraph 6.1.1, P&G shall consider in good faith and reasonably accommodate all requests Corium makes with respect to those claims and responsive arguments.  P&G agrees that it will exercise its control under this Paragraph 6.1.1 only in those instances where:  i)  the claims relate to a product that P&G is or intends to commercialize, or ii) P&G has a good faith belief that the exercise of control is necessary to obtain allowance of the claims.  Corium shall keep P&G informed of all patent filings, prior art, and of all official written or oral communications requiring a response under this Paragraph 6.1.1 in accordance with Paragraph 6.3.

 

6.2                               Inventions During the Term of the Services Agreement.  For any Corium Technology relating to inventions conceived or reduced to practice during the term of the Services Agreement, P&G and Corium shall jointly cooperate in deciding which inventions shall be patented.  Inventions for which one Party decides not to file, prosecute, or maintain a patent or patent application under this Paragraph shall be governed by Paragraphs 6.5 and 6.6 as appropriate.  In the event a patent application is filed, Corium shall have ultimate control over the preparation, filing and prosecution of that application and applications claiming priority to it except that P&G shall have ultimate control over the drafting of claims, and any arguments responsive to an official communication from a patent office related thereto, solely directed to the P&G Primary Field of Use.  Claims relating to the P&G Primary Field of Use shall be included in the Corium Patents under this Paragraph 6.2 if requested by P&G or may be included in a separate application if mutually agreed upon by the Parties.  In making any decisions regarding the drafting of claims and responsive arguments related thereto under this Paragraph 6.2, P&G shall consider in good faith and reasonably accommodate all requests Corium makes with respect to those claims and responsive arguments.  P&G agrees that it will exercise its control under this Paragraph 6.2 only in those instances where:  i)  the claims relate to a product that P&G is or intends to commercialize, or ii) P&G has a good faith belief that the exercise of control is necessary to obtain allowance of the claims.  Corium shall keep P&G informed of all patent filings, prior art, and of all official written or oral communications requiring a response under this Paragraph 6.2 in accordance with Paragraph 6.3.

 

6.3                               Copies of official written communications from a patent office shall be provided to P&G within a reasonable period of time but no greater than [*] after receipt by Corium.  

 

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Official oral communications requiring an immediate response shall be promptly communicated to P&G.  All papers prepared by Corium for filing in a patent office shall be provided to P&G no less than [*] prior to filing so that P&G may have adequate time to review said papers and provide its comments to Corium for consideration.  Corium agrees to consider in good faith P&G comments that are provided within [*] of the proposed filing date.  Alternatively, for papers to be filed in a non-U.S. patent office, Corium may provide to P&G its instructions to the agents or attorneys directly representing Corium before that non-U.S. patent office and consider in good faith P&G comments provided within [*] of the receipt of those instructions by P&G.  Corium agrees to consider in good faith P&G comments regarding official oral communications if said comments by P&G are communicated promptly to Corium after receipt of notice by P&G of an official oral communication from a patent office.  P&G’s attorney’s fees and other costs incurred in reviewing filings and official communications and making requests to Corium regarding filings and responses shall [*].

 

6.4                               Corium and P&G will share equally the costs of preparation, filing, prosecution, and maintenance of the Corium Patents under Paragraphs 6.1 and 6.2, subject to the exceptions set out in Paragraphs 6.5 and 6.6 below.  Each Party agrees to reimburse the other Party for its share of the patent preparation, filing, prosecution, or maintenance costs incurred by said other Party within thirty (30) business days of receipt of an invoice covering such fees (including copies of invoices for legal fees describing the legal services performed in reasonable detail) and upon receipt of reasonably satisfactory evidence that such fees were paid.

 

6.5                               If Corium decides not to file, prosecute, or maintain a patent application or patent in any particular country (including the United States), P&G may elect to pay [*], in which case P&G shall have ultimate control over the filing, preparation, prosecution, and maintenance of that application or patent.  P&G may discontinue its prosecution or maintenance of a Corium Patent under this Paragraph 6.5 at any time acting in its sole discretion.  P&G will keep Corium informed of official communications relating to that application or patent and intended responses, or alternatively instructions in the case of a non-U.S. patent office, to P&G representatives within the time periods set forth in Paragraph 6.3 and will reasonably accommodate Corium requests with respect to such responses or instructions within the time periods of Paragraph 6.3.  Corium’s attorney’s fees and other costs incurred in reviewing filings and official communications and making requests to P&G regarding filings and responses shall [*].  In the event Corium subsequently elects to assert a patent or patent application as to which it has made such a communication, it will [*].  In the event P&G has [*] under this paragraph and then seeks a license to that patent application or patent for a third party under paragraph 2.5, the percentage in Paragraph 2.5.3(a) shall be [*] rather than [*] for that license.

 

6.6                               If P&G decides that it does not wish to pay its share of the expenses under Paragraphs 6.1 or 6.2 for any Corium Patent in any particular country (including the United States), P&G may end its obligation to pay its share of the future expenses of filing, prosecution, and maintenance, beginning on the date it communicates to Corium its desire to end this obligation.  If P&G elects to end its obligation in this manner for a particular patent or application in a particular country, it will cease to be licensed under that patent or application in that country.  P&G may elect to recover a license for such a patent or application by retroactively reimbursing Corium for P&G’s share of expenses incurred after the date on which it communicates to Corium its desire to stop paying its share of expenses.  However, if P&G elects to recover a license, the license which it recovers will be subject to any licenses which Corium has entered into in the interim.

 

6.7                               Patents Disclosing and Claiming P&G Improvements.  P&G shall have sole responsibility and decision making authority for the preparation, filing, prosecution, and 

 

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maintenance of any patents disclosing and claiming P&G Improvements and shall pay all costs associated therewith.

 

6.8                               Cooperation.  P&G and Corium agree to fully cooperate regarding the execution of any documents necessary or desirable to prepare, prosecute, or maintain any patents under Paragraphs 6.1 to 6.7.

 

6.9                               Interferences, oppositions, and similar proceedings.  P&G also may, in its sole discretion, elect to undertake or defend any interference, opposition or similar procedure with respect to the Corium Patents providing it bears all the costs of such action, except that P&G shall not have this right with respect to Corium Patents whose claims are solely directed to the Corium Core Field.

 

6.10                        Opt-Out Period.  P&G shall have [*] after receipt of all patent filing and prosecution information for the Corium Patents listed in attached Exhibit A to review and determine whether P&G has an interest in opting out of cost sharing for one or more Corium Patents listed in Exhibit A.  P&G may provide written notice, within said [*] period, to Corium identifying those Corium Patents listed in Exhibit A that P&G does not intend to share in the prosecution and maintenance costs under Paragraph 6.4.   The Corium Patents so identified shall fall under the provisions of Paragraph 6.6, and P&G shall owe no money to Corium for any patent expenses incurred by Corium during said [*] period for those Corium Patents for which written notice is provided to Corium under this Paragraph 6.10.  P&G shall, however, owe Corium for any patent expenses incurred during said [*] period for any Corium Patents listed in Exhibit A for which no notice is provided to Corium under this Paragraph 6.10.

 

7.                                      INFRINGEMENT BY THIRD PARTY

 

7.1                               Notification.  Both Corium and P&G agree to notify the other in writing should either party become aware of possible infringement of the Corium Patents.

 

7.2                               Third Party Infringement in P&G Fields of Use Other than the P&G Primary Field of Use.

 

7.2.1               If P&G provides Corium with evidence of infringement of one of the Corium Patents in the P&G Fields of Use other than the P&G Primary Field of Use, P&G may by written notice request Corium to take steps (other than filing or threatening a lawsuit) to terminate the infringement.  Any settlement negotiated by Corium must be approved in writing by P&G.  If Corium does not, within [*] of receipt of such notice, cause the alleged infringement to terminate to P&G’s satisfaction, then:

 

(a)                                 Upon written notice to Corium, P&G shall have the right, but not the obligation, as exclusive licensee to institute such action in its own name as it deems appropriate to terminate said infringement through negotiation, litigation, and/or alternative dispute resolution at P&G’s expense.  As exclusive licensee, P&G shall have the power at its expense to institute, prosecute and settle, including by granting the infringing party a sublicense, suits for infringement of the Corium Patents under this Paragraph 7.2.1(a) after said ninety day 

 

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period, and if required by law, Corium will join as a party plaintiff in such suits at P&G’s expense.

 

(b)                                 P&G shall have the right to select and control counsel in any action initiated by P&G under Paragraph 7.2.1(a).

 

7.2.2               Any recovery awarded or received in connection with any negotiation, settlement or suit under this Paragraph 7.2 will first [*] to cover the litigation costs each incurred, and next shall be paid to Corium or P&G to cover any litigation costs it incurred in excess of the litigation costs of the other.  In any action initiated by P&G, any recovery in excess of litigation costs shall belong solely to P&G.  In any action initiated by Corium, any recovery in excess of litigation costs shall be [*].

 

7.3                               Third Party Infringement in P&G Primary Field of Use

 

7.3.1               As exclusive licensee in the P&G Primary Field of Use, P&G shall have the right upon written notice to Corium and subject to Paragraph 7.3.1(a), but not the obligation, to institute in the first instance as between the Parties such action in its own name to terminate an infringement of a Corium Patent in the P&G Primary Field of Use through negotiation, litigation, and/or alternative dispute resolution at P&G’s expense.  P&G shall have the power to institute, prosecute and settle, including by granting the infringing party a sublicense, suits for infringement of the Corium Patents in the P&G Primary Field of Use, and if required by law, Corium will join as a party plaintiff in such suits at P&G’s expense.

 

(a)                                 P&G agrees that it will use reasonable efforts to consult with Corium prior to the initiation of any action by P&G under this Paragraph 7.3.1 so long as said consultation occurs within [*] of the receipt by Corium of the written notice under Paragraph 7.3.1.  For the avoidance of doubt, said consultation under this Paragraph 7.3.1(a) shall not impair P&G’s right to, in its discretion, institute an action in its own name under this Paragraph 7.3.1 to terminate an infringement in the P&G Primary Field of Use [*] after receipt by Corium of the written notice under Paragraph 7.3.1.

 

(b)                                 P&G shall have the right to control and to select counsel in any action initiated by P&G under this Paragraph 7.3.

 

(c)                                  Corium agrees not to initiate any action, including but not limited to negotiation, litigation or settlement, relating to an infringement of the Corium Patents in the P&G Primary Field of Use without the prior written consent of P&G.  In the event that P&G declines to initiate any action to terminate an infringement of a Corium Patent in the P&G Primary Field of Use, Corium may, subject to the prior written consent of P&G, initiate any action to terminate said infringement within the P&G Primary Field of Use at Corium’s expense.

 

(d)                                 Any recovery awarded or received in connection with any negotiation, settlement, or suit will first be [*] to cover the litigation costs each incurred, and next shall be paid to Corium or P&G to cover any litigation costs it incurred in excess of the litigation costs of the other.  In any action initiated by P&G, any recovery in excess of litigation 

 

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costs shall belong solely to P&G.  In any action initiated by Corium, any recovery in excess of litigation costs shall be [*].

 

7.4                               Third Party Infringement in Corium Retained Field.  Corium will have sole control and discretion regarding how to proceed in the event that a third party is infringing one of the Corium Patents in the Corium Retained Field and any recovery or settlement awarded or  received in connection with such action shall be solely retained by Corium.

 

7.5                               Prosecution of Third Party Infringement in Other Party’s Field of Use.

 

7.5.1               To the extent that Corium is permitted to exploit a specific product application in P&G’s Field of Use pursuant to Paragraph 2.4 and a third party is infringing one of the Corium Patents in connection with such product application, such infringement shall be treated as if it had taken place within the Corium Retained Field in accordance with Paragraph 7.4.

 

7.5.2               To the extent that P&G is permitted to exploit a specific product application in the Corium Extended Field pursuant to Paragraph 2.5 and a third party is infringing one of the Corium Patents in connection with such product application, such infringement shall be treated as if it had taken place in P&G Fields of Use Other than the P&G Primary Field of Use in accordance with Paragraph 7.2.

 

7.6                               Declaratory Judgments.  If a declaratory judgment action alleging invalidity, unenforceability or non-infringement of any of the Corium Patents is brought against P&G, P&G may elect, in its sole discretion, to have sole control of the action, including, but not limited to, selection and control of counsel and the defense and settlement of the action, and if P&G so elects it shall bear all the costs of the action.  If a declaratory judgment action alleging invalidity, unenforceability or non-infringement of any of the Corium Patents is brought against Corium, Corium shall have sole control of the action, including, but not limited to, selection and control of counsel and the defense and settlement of the action.

 

7.7                               Cooperation.  Each Party shall fully cooperate with the other Party, at said other Party’s expense, in support of any action initiated by said other Party under Paragraphs 7.1 to 7.3, including using commercially reasonable efforts to have its employees testify when requested and to make available relevant records, papers, information, samples, specimens, and the like.

 

8.                                      INFRINGEMENT BY THE PARTIES

 

8.1                               Infringement by P&G In P&G Fields of Use Or For a Specific Product Application Under Paragraph  2.5.

 

8.1.1               If P&G, any of its Affiliates or sublicensees, distributors or other customers are approached by or sued by a third party concerning an allegation of patent infringement for the development, manufacture, use, distribution or sale of a Licensed Product in connection with the P&G Fields of Use or for a specific product application under Paragraph 2.5, P&G will promptly notify Corium upon its receiving written notice of such allegation.  P&G shall be entitled to solely control all aspects of the defense or mitigation of any such allegations, including but not limited 

 

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to, selection and control of counsel, negotiation, litigation strategy development and execution, and settlement.

 

8.1.2               In the event P&G is a party to a legal action pursuant to Paragraph 8.1.1, Corium shall fully cooperate with and supply all assistance reasonably requested by P&G, including by using commercially reasonable efforts to have its employees testify when requested and to make available relevant records, papers, information, samples, specimens, and the like.  P&G shall bear the reasonable expenses incurred by Corium in providing assistance and cooperation as requested by P&G pursuant to this Section 8.

 

8.1.3               P&G shall keep Corium reasonably informed of the progress of the legal action, and Corium shall be entitled to be represented by counsel in connection with such legal action at its own expense.

 

8.1.4               P&G shall have the sole right to settle any claims under this Paragraph 8.1.  Should P&G elect to abandon such an action other than pursuant to a settlement with the alleged infringer, P&G shall give timely notice to Corium.

 

8.2                               Infringement by Corium in Corium Retained Field Or For A Specific Product Application Under Paragraph 2.4.

 

8.2.1               If Corium, any of its Affiliates or Sublicensees, distributors or other customers become aware of or are sued by a third party concerning an allegation of patent infringement for the development, manufacture, use, distribution or sale of a product incorporating the Corium Technology in connection with the Corium Retained Field or for a specific product application under Paragraph 2.4, Corium shall promptly notify P&G upon notice of such allegation

 

8.2.2               Corium will have the sole right to control the defense and or mitigation of any such allegations, including but not limited to, selection and control of counsel, negotiation, litigation strategy development and execution, and settlement.  Corium shall have the right to settle any claims for infringement of a third party’s Intellectual Property rights brought against it.

 

8.2.3               Corium shall keep P&G reasonably informed of the progress of the legal action, and P&G shall be entitled to be represented by counsel in connection with such legal action at its own expense.

 

9.                                      FREEDOM FROM SUIT

 

9.1                               Release.  P&G hereby releases Corium from all claims, demands, and rights of action which P&G may have on account of any direct or indirect infringement, alleged direct or indirect infringement, and misappropriation of any of the P&G Intellectual Property Rights in any country of the world by reason of the manufacture, use, sale, offer for sale, distribution, license, lease, display, reproduction, and import prior to the Effective Date of this Agreement of any tooth whitening product made, used or sold by Corium.  For the avoidance of doubt, the release under this Paragraph 9.1 is personal and limited to Corium and is not intended to constitute an implied license, equitable estoppel or any other license or defense, including any equitable 

 

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defenses, to or for any third party and no such license or defense is hereby contemplated or granted.

 

9.2                               Immunity (Corium).  P&G covenants that P&G will not sue, threaten to sue, assert a claim, or threaten to assert a claim against Corium for direct infringement, indirect infringement (including contributory infringement or inducement to infringe), or misappropriation of Intellectual Property relating to P&G Improvements as a result of the manufacture, sale, offer for sale, use, import, license, lease, distribution, display, and/or reproduction of products distributed by or on behalf of Corium in the Corium Core Field, excluding the Current [*] Products.

 

9.3                               Immunity (customers).  P&G covenants that it will not sue, threaten to sue, assert a claim, or threaten to assert a claim for direct infringement or misappropriation of Intellectual Property relating to P&G Improvements as a result of the manufacture, sale, offer for sale, use, import, license, lease, distribution, display, and/or reproduction of products distributed by or on behalf of Corium in the Corium Core Field, excluding the Current [*] Products, against any (1) customer, suppliers, distributors, or reseller of Corium and any other entities that supply to, or receive, from Corium or (2) end user .

 

9.4                               For the avoidance of doubt, the immunity from suit granted in Paragraphs 9.2 and 9.3 shall not extend to Intellectual Property relating to P&G Improvements that were not developed from information relating the Corium Technology provided by Corium to P&G under this Agreement, including but not limited to any patents assigned to P&G that published or issued prior to the Effective Date of this Agreement, and therefore does not extend to any Intellectual Property that was developed independent of said information provided by Corium or which was developed from non-confidential information that is publicly available through no fault of P&G.  For purposes of clarity, to the extent that P&G Improvements incorporate Intellectual Property aspects that are unrelated to the Corium Technology, whether or not such aspects are owned by P&G, said immunity from suit shall not extend to said unrelated aspects.

 

10.                               REPRESENTATIONS & WARRANTIES

 

10.1                        Of Both Parties.  Each Party represents and warrants to the other Party that, as of the Effective Date:

 

10.1.1        The execution, delivery and performance of this Agreement and the consummation by the warranting Party of the transactions contemplated hereby have been duly authorized by all necessary corporate action of the warranting Party, as appropriate.

 

10.1.2        This Agreement has been duly executed and delivered by the warranting Party, and constitutes a valid and legally binding obligation of the warranting Party enforceable against such Party in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to the general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law).

 

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10.1.3        The warranting Party has not and will not enter into any agreement, the terms and conditions of which, would be inconsistent or in derogation with any of the terms and conditions hereof.

 

10.1.4        The warranting Party is duly organized and validly existing under the laws of the jurisdiction of its organization, and has full power, authority and legal right to execute, deliver and perform this Agreement, and has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

 

10.1.5        The warranting Party is not subject to any judgment, order, injunction, decree or award of any court, administrative agency or governmental body that would or might interfere with its performance of any of its material obligations hereunder.

 

10.2                        Of Corium. Corium hereby covenants, represents, and warrants to P&G as follows:

 

10.2.1        As of the Effective Date, there are no liens, mortgages, commitments, obligations and encumbrances of any kind or any nature whatsoever against the Corium Technology;

 

10.2.2        As of the Effective Date, Corium has no knowledge of any oral or written notice being received by Corium, its Affiliates, partners, distributors, suppliers, resellers, sub-licensees, or customers from any third party alleging that any product incorporating the Corium Technology or related to the Current [*] Products that was, is, or will be made, used or sold by Corium, its Affiliates, partners, distributors, suppliers, resellers, sub-licensees, or customers infringed or infringes their Intellectual Property rights, and that Corium, as of the Effective Date, is not operating under or paying any royalties under any patent license or technical information agreement, other than the Commercialization Agreement dated January 21, 2003 between Corium and [*]and amended versions thereof, applicable to a product incorporating the Corium Technology or related to the Current [*] Products nor is committed in any way to enter into such an agreement.

 

10.2.3        Corium owns all right, title, and interest in the Corium Technology, or a Licensable Interest or transferable interest therein, including all the Corium Technology set forth in attached Exhibits A, C, D, and E, and , as of the Effective Date, the Corium Technology is not subject to any outstanding order, charge, action, suit, proceeding, hearing, investigation, complaint, pending or threatened claim or demand which challenges the use or ownership of the Corium Technology, including any actions by or on behalf of [*] or any other existing or former employee of Corium or [*].

 

10.2.4        As of the Effective Date, to Corium’s knowledge and based upon a reasonable inquiry by Corium, attached Exhibit A of this Agreement contains a true and complete list of all of the Corium Patents that Corium owns, or has a Licensable Interest or transferable interest therein, that have applicability in the P&G Fields of Use.

 

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10.2.5        As of the Effective Date, to Corium’s knowledge, there are no patents owned or applications pending by [*] that would prevent P&G from practicing the Corium Technology set forth in Exhibits A, C, D, and E within the P&G Fields of Use outside of the Russian Federation.

 

10.2.6        To Corium’s knowledge and based upon a reasonable inquiry by Corium, attached Exhibit C of this Agreement contains a true and complete list of the Corium Patents unrelated to the Current [*] Products.

 

10.2.7        To Corium’s knowledge and based upon a reasonable inquiry by Corium, the Corium Patents, and the Technology described therein, listed in attached Exhibit C are not subject to any contractual obligations in P&G’s Field of Use, including existing or expectant licenses, with any third party including [*] or its assignees or successors in interest.

 

10.2.8        To Corium’s knowledge and based upon a reasonable inquiry by Corium, the Licensed Products described in attached Exhibits D and E are not subject to any contractual obligations, including existing or expectant licenses, with any third party including [*] or any of its assignees or successors in interest.

 

10.2.9        That any Licensed Products developed or manufactured with the assistance of Corium, including the First Tooth Whitening Product, the Second Oral Care Product, or any Involved Additional Commercial Product, shall be free of any obligations, contractual or otherwise, between Corium and [*], or any of [*]’s assignees or successors in interest, unless Corium, provides prompt notice that specific aspects of such products (e.g., any excipients or ingredients,  concentrations thereof, etc.) selected solely by P&G may affect this covenant, representation and warranty. For the avoidance of doubt, Corium shall not be in breach of this provision if it has so promptly notified P&G in writing of which specific aspects may affect this covenant, representation, and warranty and P&G elects to proceed with the development, manufacture and sale of such product.

 

10.2.10       That Corium will throughout the term of this Agreement, as far as it is reasonably practicable to do so, cause its employees who are employed to do research, development, or other inventive work to disclose to it inventions within the scope of this Agreement and to assign to Corium rights in such inventions such that P&G shall receive, by virtue of this Agreement, the licenses agreed to be granted to it, it being understood that if due care and diligence are used, any inadvertent failure to comply with this Paragraph 10.2.5 shall not constitute a breach of this Agreement.

 

10.2.11       As of the Effective Date, to Corium’s knowledge, the Corium Patents are valid and enforceable.

 

10.2.12       To Corium’s knowledge and based upon a reasonable and due investigation, P&G shall owe no compensation to [*] or to Corium on behalf of [*] in any form now or in the future for making, having made, using, selling, offering for sale, or importing Licensed Products world-wide that incorporate the Corium Technology

 

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10.3                        EXCEPT TO THE EXTENT OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NOTHING CONTAINED IN THIS AGREEMENT WILL BE CONSTRUED AS:

 

10.3.1        A WARRANTY OR REPRESENTATION BY EITHER PARTY AS TO THE ENFORCEABILITY, OR SCOPE OF ANY PATENT;

 

10.3.2        A WARRANTY OR REPRESENTATION THAT ANY MANUFACTURE, SALE, OFFER FOR SALE, LEASE, IMPORT, USE OR OTHER DISPOSITION OF ANY PRODUCTS HEREUNDER WILL BE FREE FROM INFRINGEMENT OF PATENT, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES;

 

10.3.3        A WARRANTY OR REPRESENTATION BY EITHER PARTY WITH RESPECT TO THEIR ENFORCEMENT OF ANY PATENT INCLUDING THE PROSECUTION, DEFENSE OR CONDUCT OF ANY ACTION OR SUIT CONCERNING INFRINGEMENT OF ANY SUCH PATENT.

 

10.4                        Survival of Representations and Warranties.  The representations and warranties given by Corium in Paragraph 10.2 will survive for a period of [*] from the first sale of a Licensed Product or a Commercial Product to a consumer in connection with a national or regional rollout of such Licensed Product or Commercial Product, respectively.

 

10.5                        No Other Representations and Warranties.   Neither Party makes any representations or warranties other than as expressly set forth in this Article 10.

 

11.                               TERMINATION.

 

11.1                        If P&G, acting in its sole discretion, does not sign a Project Commitment Document for a First Tooth Whitening Product incorporating the Corium Technology prior to the date that is one (1) year from the Effective Date (the “Anniversary Date”), then P&G shall have the option, acting at its sole discretion, to terminate this Agreement and the Services Agreement, subject to the terms of Paragraph 11.3, upon prior written notice to Corium before the Anniversary Date and all licenses, rights, and obligations of both parties hereunder shall then terminate, except for those rights and obligations that are specifically intended to survive any expiration or termination of this Agreement.

 

11.1.1        In the event P&G does not terminate this Agreement under Paragraph 11.1, then the license granted to P&G pursuant to Section 2 of this Agreement shall become perpetual and irrevocable; and

 

11.1.2        The First Signing Payment and Second Signing Payment to Corium by P&G under Paragraphs 4.1.1 and 4.1.2 shall become non-refundable.

 

11.2                        In the event this Agreement terminates pursuant to Paragraph 11.1 on the Anniversary Date:

 

*Confidential Treatment Requested.

 

22

 

11.2.1        The First Signing Payment and the Second Signing Payment shall be fully refunded to P&G by Corium in the amount of [*] within [*] of the Anniversary Date; and

 

11.2.2        Within [*] of the Anniversary Date, Corium shall grant and transfer to P&G, without additional consideration, [*] shares of the Corium’s Common Stock to represent [*] of (i) the issued and outstanding Common Stock of the Company as of the Effective Date and (ii) the shares of Common Stock reserved for issuance upon the exercise of outstanding options to purchase shares of the Company’s Common Stock (the “Stock Remittance”) outstanding as of the Effective Date.  The shares constituting the Stock Remittance shall have rights, preferences, privileges and restrictions identical to those set forth in the Certificate of Incorporation of Corium.

 

11.2.3        All licenses under Section 2 of this Agreement shall terminate.

 

11.3                        Survival of Certain Obligations.  Paragraph 10.4 and Sections 12, 13, 15, 16 and 17 hereof shall survive any termination, in whole or in part, of this Agreement, provided that in no event shall the obligations of Corium in Section 13 survive for more than [*] after the termination or expiration of the Services Agreement and in no event shall such obligations survive the termination of this Agreement or the Services Agreement if this Agreement is terminated by P&G in accordance with Paragraph 11.1 of this Agreement or the Services Agreement is terminated by P&G in accordance with Paragraph 6.2.4 of the Services Agreement.  The termination of this Agreement will not relieve either Party of any liability it may have to the other Party arising out of or relating to acts or omissions occurring prior to termination.

 

12.                               CONFIDENTIALITY

 

12.1                        During the term of this Agreement, both Parties may be exposed to certain information of the other Party, not generally known to the public, which has been identified by the disclosing party (the “Disclosing Party”) at the time of disclosure as being confidential by means of an appropriate marking, or, if disclosed orally or visually, shall be confirmed in writing as confidential within thirty (30) days of the oral or visual disclosure (collectively the “Confidential Information”).  The Party receiving the Confidential Information (the “Receiving Party”) shall keep the Disclosing Party’s Confidential Information in confidence, using measures no less protective than the Receiving Party takes to protect its own confidential information of like nature, which in no event will be less than a reasonable standard of care.   The Receiving Party shall not use, copy or disclose the Confidential Information to any third party, nor permit any of its personnel to use, copy or disclose the Confidential Information, for any purpose not specifically contemplated by this Agreement or the Services Agreement.  For the avoidance of doubt, it is understood by the Parties that disclosure of Confidential Information by P&G to suppliers, contract manufacturers, testing organizations or consumer testing, or consultants for the purposes of market testing, product development or manufacture within the P&G Fields of Use or for a specific product application under Paragraph 2.5 constitute purposes specifically contemplated by this Agreement and/or the Services Agreement.

 

12.2                        Exceptions.  The obligations in this Section 12 (Confidential Information) shall not preclude the Receiving Party from using or disclosing the same or similar information which may be the same as the Disclosing Party’s Confidential Information to the extent that such same

 

*Confidential Treatment Requested.

 

23

 

or similar information (i) was or later becomes, through no act or omission on the part of the Receiving Party, generally available to or available to the public; (ii) was rightfully in the possession of the Receiving Party at the time of disclosure by the Disclosing Party, without restriction as to use or disclosure; (iii) is hereafter acquired by the Receiving Party from a third party who, in providing such information, does not breach an obligation or confidence and provides such information without restriction as to use or disclosure; or (vi) is independently conceived, created, or developed by the Receiving Party without use of or access to the other party’s Confidential Information. The provisions of Section 12 (Confidential Information) will not restrict a Party from disclosing the other Party’s Confidential Information to the extent required by any law or regulation; provided that the Party required to make such a disclosure uses reasonable efforts to give the other Party reasonable advance notice of such required disclosure in order to enable the other Party to prevent or limit such disclosure.

 

13.                               NONCOMPETE.  Except for only those products and those activities directly arising out of Corium’s rights in the Corium Retained Field, during the term of the Product Development and Services Agreement and for a period of [*] thereafter, Corium by itself or through third parties shall not directly or indirectly enter into the research, development, prototyping, testing, manufacture, supply, marketing, distribution, sale, promotion, or commercialization of any compounds, materials, or products, that would compete with the Licensed Products in the P&G Fields of Use and/or the P&G Primary Field of Use to be developed and commercialized under this Agreement by P&G or its licensees by: (i) developing, prototyping, conducting research on, manufacturing, supplying, marketing, selling or distributing any such products or products competing with such products; (ii) licensing any Intellectual Property to any third party other than P&G for use in connection with the research, development, prototyping, testing, manufacture, supply, marketing, distribution, sale, promotion, or commercialization of any such compounds, materials, or products; (iii) consulting with, supplying compounds, materials, or products to, cooperating with or providing services to, any third party other than P&G with respect to the research, development, prototyping, testing, manufacture, supply, marketing, distribution, sale, promotion, or commercialization of any such compounds, materials, or products; or (iv) investing in any third party, that engages in the research, development, prototyping, testing, manufacture, supply, marketing, distribution, sale, promotion, or commercialization of such products, (collectively, the “Restricted Business”); provided, however, that this restriction shall not apply to Corium directly acquiring a non-controlling ownership interest of less than [*] of the equity of a public or private company that engages in a Restricted Business if Corium acquires such equity stake in such company primarily in exchange for obtaining rights (either via an outright assignment or a license) access to technology owned by such company and that is unrelated to the Restricted Business and such company’s market cap does not exceed [*].  In addition, Corium may acquire a less than [*] equity stake in any publicly traded or private company that derives less than [*] of its revenues from the Restricted Business.

 

14.                               COMMERCIAL PRODUCT MANUFACTURING.  If requested by P&G, and on terms and conditions to be agreed at such time, Corium shall assist P&G in defining the most cost effective and efficient supply chain design (manufacturing process and sourcing options) for the sourcing, supply, and manufacturing of large-scale quantities of prototype product and Licensed Product for subsequent development and commercial sale. Corium, at its election, shall provide P&G with its proposed terms (financial and other) for the supply and contract

 

*Confidential Treatment Requested.

 

24

 

manufacturing of Licensed Product (or components thereof containing the Corium Technology). P&G shall consider such proposal in good faith but shall not be obligated to enter into a supply or contract manufacturing agreement with Corium for the supply of any Licensed Product (or components thereof containing the Technology).

 

15.                               INDEMNIFICATION

 

15.1                        By P&G.  From and after the Effective Date, P&G will indemnify, defend and hold harmless Corium and its Affiliates and their respective directors, officers, shareholders, partners, attorneys, accountants, and employees and any agents of the foregoing and any heirs, executors, successors and assigns of any of the foregoing (the “Corium Indemnified Parties”) from, against and in respect of any damages, losses, charges, obligations, Liabilities, Actions, interest, penalties and reasonable costs and expenses (including, without limitation, reasonable attorneys’ and experts’ fees and expenses incurred to enforce successfully the terms of this Agreement) (“Corium Losses and Expenses”) imposed on, sustained, incurred or suffered by any of the Corium Indemnified Parties relating to, arising from or otherwise in respect of any breach of, or inaccuracy in, a representation or warranty of P&G hereunder, or breach of (i) a covenant or other agreement of P&G hereunder, or (ii)  any Action brought by a third party against a Corium Indemnified Party arising from or related to P&G’s manufacturing, sale, marketing, distribution, or other exploitation of a product covered by the Corium Patents and/or the Technology; provided, however, that P&G shall have no obligation to indemnify Corium for any Corium Losses and Expenses for which indemnification is sought if (i) such Corium Losses and Expenses were also caused by, relate to or involve a breach of, or inaccuracy in, any covenant, obligation, representation or warranty of Corium provided to P&G in this Agreement or (ii) such Corium Losses and Expenses result from or arise out of an action or omission of Corium or involve any culpability of Corium relating in any way to [*] prior to or after the Effective Date, including, but not limited to, any contractual obligations between [*] and Corium, any intellectual property owned or licensed to [*] by Corium, any conduct by, between or on behalf of [*].

 

15.2                        By Corium.  From and after the Effective Date, Corium will indemnify, defend and hold harmless P&G and its Affiliates and licensees and their respective directors, officers, shareholders, partners, attorneys, accountants, and employees and any agents of the foregoing and any heirs, executors, successors and assigns of any of the foregoing (the “P&G Indemnified Parties”) from, against and in respect of any damages, losses, charges, obligations, Liabilities, Actions, interest, penalties and reasonable costs and expenses (including, without limitation, reasonable attorneys’ and experts’ fees and expenses incurred to enforce successfully the terms of this Agreement) (“P&G Losses and Expenses”) imposed on, sustained, incurred or suffered by any of the P&G Indemnified Parties relating to, arising from or otherwise in respect of any breach of, or inaccuracy in, a representation or warranty of Corium hereunder, or breach of (i) a covenant or other agreement of Corium hereunder, or (ii)  any Action brought by a third party against a P&G Indemnified Party arising from or related to Corium’s manufacturing, sale, marketing, distribution, or other exploitation of a product covered by the Corium Patents and/or the Technology; provided, however, that Corium shall have no obligation to indemnify P&G for any P&G Losses and Expenses for which indemnification is sought if such P&G Losses and

 

*Confidential Treatment Requested.

 

25

 

Expenses were also caused by, relate to or involve a breach of, or inaccuracy in, any covenant, obligation, representation or warranty of P&G provided to Corium in this Agreement.

 

15.3                        Third Party Claims.  The “Indemnified Parties” shall mean the Corium Indemnified Parties and the P&G Indemnified Parties.  If a claim by a third party is made against an Indemnified Party hereunder, and if such Indemnified Party intends to seek indemnity with respect thereto under this Section 15, such Indemnified Party will promptly notify Corium, in the case of a P&G Indemnified Party, or P&G, in the case of a Corium Indemnified Party (such person to be notified, the “Indemnifying Party”) in writing of such claims setting forth such claims in reasonable detail, provided that failure of such Indemnified Party to give prompt notice as provided herein will not relieve the Indemnifying Party of any of its obligations hereunder, except to the extent that the Indemnifying Party is materially prejudiced by such failure.  The Indemnifying Party will have twenty (20) days after receipt of such notice to undertake, through counsel of its own choosing, subject to the reasonable approval of such Indemnified Party, and at its own expense, the settlement or defense thereof, and the Indemnified Party will cooperate with it in connection therewith; provided, however, that the Indemnified Party may participate in such settlement or defense through counsel chosen by such Indemnified Party, provided that the fees and expenses of such counsel will be borne by such Indemnified Party.  If the Indemnifying Party will assume the defense of a claim, it will not settle such claim without the prior written consent of the Indemnified Party, (a) unless such settlement includes as an unconditional term thereof the giving by the claimant of a release of the Indemnified Party from all Liability with respect to such claim or (b) if such settlement involves the imposition of equitable remedies or the imposition of any material obligations on such Indemnified Party other than financial obligations for which such Indemnified Party will be indemnified hereunder.  If the Indemnifying Party will assume the defense of a claim, the fees of any separate counsel retained by the Indemnified Party will be borne by such Indemnified Party unless there exists a conflict between them as to their respective legal defenses (other than one that is of a monetary nature), in which case the Indemnified Party will be entitled to retain separate counsel, the reasonable fees and expenses of which will be reimbursed by the Indemnifying Party.  If the Indemnifying Party does not notify the Indemnified Party within twenty (20) days after the receipt of the Indemnified Party’s notice of a claim of indemnity hereunder that it elects to undertake the defense thereof, the Indemnified Party will have the right to contest, settle or compromise the claim but will not thereby waive any right to indemnity therefore pursuant to this Agreement.  The indemnification provisions set forth in this Article 15 are the sole and exclusive means of recovery of money damages with respect to the matters covered herein, except for fraud.

 

15.4                        Limitation on Losses and Expenses.  Notwithstanding anything to the contrary contained herein, no indemnifying Party shall be liable (including liability for negligence or other tortious act or omission) for (a) any loss of profit, loss of contract or loss of goodwill; or (b) any punitive, indirect or consequential damages pursuant to this Agreement (it being understood that any punitive damages paid by any Indemnified Party to any third party will be considered direct damages, not subject to this Paragraph 15.4).

 

15.5                        In the event of a breach by Corium of any of its representations or warranties under Paragraphs 10.2.7, 10.2.8, or 10.2.9, P&G may as its remedy acting in its sole discretion elect to either:

 

26

 

15.5.1        Request that Corium i) pay P&G, in cash, a sum equal to [*], and ii) grant and transfer to P&G, without additional consideration, [*] shares of the Corium’s Common Stock to represent [*] of (a) the issued and outstanding Common Stock of the Company as of the Effective Date and (b) the shares of Common Stock reserved for issuance upon the exercise of outstanding options to purchase shares of the Company’s Common Stock (the “Stock Remittance”) outstanding as of the Effective Date, wherein the shares constituting the Stock Remittance shall have rights, preferences, privileges and restrictions identical to those set forth in the Certificate of Incorporation of Corium; or

 

15.5.2        Seek indemnification from Corium under Paragraph 15.2.

 

16.                               DISPUTE RESOLUTION

 

16.1                        Notice and Negotiation.  In the event of any dispute or disagreement arising out of this Agreement, the Parties shall attempt to resolve the matter by submitting it for resolution to the Vice President of Research and Development of Corium and the Vice President of Corporate Research and Development of P&G. If these representatives are unable to resolve such dispute to the satisfaction of both Corium and P&G within thirty (30) days after the date on which the dispute was submitted to such representatives, the dispute shall be subject to the process described in Paragraph 16.2 below.  Notwithstanding anything to the contrary contained in this Agreement, if representatives of the Parties are unable to resolve a dispute relating to a material breach of an obligation, covenant or right under either:   i) Section 2 of this Agrement as it relates to the Corium Core Field, ii) Section 2 of this Agreement as it relates to Licensed Products within the P&G Primary Field of Use, or iii) Section 12 (Confidentiality) of this Agreement, to the satisfaction of both Corium and P&G within thirty (30) days after the date on which the dispute was submitted to such representatives, the dispute shall not be subject to the process described in Paragraph 16.2 and either Party may seek injunctive relief.

 

16.2                        Arbitration.  P&G and Corium will attempt to settle any claim, controversy or deadlock through consultation and negotiation in good faith and a spirit of mutual cooperation.  If such attempt fails, the Parties agree to submit to binding arbitration that will be governed by the rules and procedures of the American Arbitration Association, with the requirement that the decision being issued by a written decision and opinion signed by an independent three-person panel.  Such arbitration shall take place in the State of New York.  Judgment upon the award of the arbitrator may be entered in any court having jurisdiction thereof.

 

17.                               MISCELLANEOUS

 

17.1                        Assignment.  Except as expressly permitted herein, Corium may not assign, whether by operation of law or otherwise, any right or delegate any obligation under this Agreement without the prior written consent of P&G, which shall not be unreasonably withheld by P&G, and any attempted assignment or delegation except as permitted herein shall be null and void.

 

17.2                        Governing Law; Venue.  This Agreement and the Parties’ respective rights and obligations hereunder will be governed by and construed in accordance with the laws of the State

 

*Confidential Treatment Requested.

 

27

 

of New York, without giving effect to that body of laws pertaining to conflict of laws, whether common law or statutory.

 

17.3                        Severability.  If any provision of this Agreement is held to be void or contrary to law, such provision will be construed as nearly as possible to reflect the intention of the Parties, with the other provisions remaining in full force and effect.

 

17.4                        Entire Agreement.  This Agreement, together with any exhibits, appendixes and attachments hereto, constitutes the complete and exclusive agreement between the Parties regarding the subject matter hereof, and supersedes all previous written or verbal agreements relating on this subject matter between the Parties, and all previous writings are merged and superseded by this Agreement.  This Agreement may be modified only by a written document signed by all the Parties hereto.

 

17.5                        Bankruptcy.  In the event Corium seeks or involuntarily placed under the protection of the bankruptcy laws, Title XI U.S. Code, and the trustee in bankruptcy rejects this Agreement, P&G hereby elects, pursuant to Section 365(n), to retain all rights granted to it under this Agreement to the extent permitted by law.

 

17.6                        Counterparts.  This Agreement may be executed in one or more counterparts, and by different Parties on separate counterparts, each of which will be deemed an original and all of which together will constitute one and the same original.

 

17.7                        Notices.  Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following:  (i) at the time of personal delivery, if delivery is in person; (ii) at the time of transmission by facsimile, addressed to the other party at its facsimile number specified herein (or hereafter modified by subsequent notice to the Parties hereto), with confirmation of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile; (iii) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States, with proof of delivery from the courier requested; or (iv) three (3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries. All notices for delivery outside the United States will be sent by facsimile or by express courier.  Notices by facsimile shall be machine verified as received.  All notices not delivered personally or by facsimile will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address or facsimile number as follows, or at such other address or facsimile number as such other party may designate by one of the indicated means of notice herein to the other Parties hereto as follows:

 

(a)                                 if to P&G

 

The Procter & Gamble Company

One Procter & Gamble Plaza

Cincinnati, Ohio 45202

 

28

 

Attention: [*]

Senior Counsel, Legal Division

Tel:  [*]

Fax:  [*]

Email:  [*]

 

With copies to:

 

The Procter & Gamble Company

One Procter & Gamble Plaza

Cincinnati, Ohio 45202

Attention: Jeffrey D. Weedman

Vice President, External Business Development

 

(b)                                 if to Corium:

 

Corium International, Inc.

2686 Middlefield Road, Suite G 

Redwood City, CA 94063

Attention: Gary W. Cleary, President and Chief Technical Officer

 

With copies to:

 

Fenwick & West LLP

Silicon Valley Center

801 California Avenue

Mountain View, CA 94041

Attention: Ralph Pais, Esq.

Tel:  650-335-7238

Fax:  650-938-5200

Email:  rpais@fenwick.com

 

17.8                        Press Releases.  Neither party will issue a press release or other public announcement respecting this Agreement without the prior written consent of the other Party.

 

17.9                        Force Majeure.  Should either Party be prevented from performing its obligations under this Agreement by an event of force majeure, such as an earthquake, typhoon, flood, fire, act of war, act of the public enemy, act of terrorism, act of God or any other unforeseen event the happening and consequences of which are unpreventable and unavoidable, the prevented Party shall notify the other Party by the most expedient means available (fax, telex or express mail being acceptable in any event) without any delay, and within fifteen (15) days thereafter provide detailed information of the events and, if applicable and available, a valid document for evidence issued by the relevant public notary organization explaining the reason for its inability to perform or delay in the performance of all or part of this Agreement.  The Parties shall discuss in good

 

*Confidential Treatment Requested.

 

29

 

faith, taking into account the effects of the force majeure and other unforeseen events on the performance of the obligations under this Agreement, whether to (a) exempt the prevented Party from performing part or all of its obligations under this Agreement or (b) delay the performance of the affected obligations under this Agreement.  In the absence of any such agreement, no Party shall be excused from its performance hereunder once the event of force majeure has subsided.

 

17.10                 Further Assurances.  The Parties agree to execute such further documentation and perform such further actions, including the recordation of such documentation with appropriate authorities, as may be reasonably requested by the other Party hereto to evidence, effectuate and further the purposes and intents set forth in this Agreement.

 

17.11                 Amendments and Waivers.  This Agreement may be amended only by a written instrument executed by both Parties.  Any amendment effected in accordance with the immediately preceding sentence will be binding on all of the Parties to this Agreement.  No failure or delay by any Party in exercising any right, power or privilege hereunder will operate as a waiver thereof nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

17.12                 Severability.  If one or more of the provisions, paragraphs, words, clauses, phrases or sentences contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision, paragraph, word, clause, phrase or sentence in every other respect and of the remaining provisions, paragraphs, words, clauses, phrases or sentences hereof will not be in any way impaired, it being intended that all rights, powers and privileges of the Parties hereto will be enforceable to the fullest extent permitted by law.

 

17.13                 No Third Party Beneficiaries.  Except for the rights of the Indemnified Parties pursuant to Article 13, nothing in this Agreement, express or implied, is intended to confer upon any Person, other than the Parties hereto or their respective successors and permitted assigns, any rights, remedies, benefits, obligations or liabilities of any nature whatsoever under or by reason of this Agreement.

 

[Remainder of this page intentionally left blank.  Signature page follows on separate page.]

 

30

 

IN WITNESS WHEREOF, the parties hereto caused this License Agreement to be duly executed as of the date first written above.

 

 

	
 
    	
CORIUM   INTERNATIONAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary W. Cleary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
Gary   W. Cleary
    
	
 
    	
 
    	
Title:
    	
President   and Chief Technical Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   PROCTER & GAMBLE COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Clayton C. Daley, Jr.
    
	
 
    	
 
    	
Name:
    	
Clayton   C. Daley, Jr.
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    

 

31

 

EXHIBIT A

 

PENDING AND ISSUED CORIUM PATENTS

(For pending applications, no representation is being made that claims will issue or that the indicated list of inventors will be correct if claims do issue)

 

[*] Confidential treatment is requested for the following thirteen pages.

 

*Confidential Treatment Requested.

 

32

 

EXHIBIT B

 

CURRENT [*] PRODUCTS

 

[*]

 

Confidential treatment is requested for the following six pages.

 

*Confidential Treatment Requested.

 

33

 

EXHIBIT C

 

CORIUM PATENTS EXCLUDING PATENTS THAT RELATE TO [*]

 

PENDING AND ISSUED CORIUM PATENTS

(For pending applications, no representation is being made that claims will issue or that the indicated list of inventors will be correct if claims do issue)

 

[*] Confidential treatment is requested for the following six pages.

 

*Confidential Treatment Requested.

 

34

 

EXHIBIT D

 

GENERATION IV PRODUCT DESCRIPTION

 

The Generation IV tooth whitening product will comprise [*].  [*]  The physical attributes of appearance, color, size, shape, taste will be finalized per consumer panel study directed by P&G.

 

*Confidential Treatment Requested.

 

35

 

EXHIBIT E

 

GENERATION V PRODUCT DESCRIPTION

 

The Generation V tooth whitening product will comprise [*].  [*]  The physical attributes of appearance, color, size, shape, taste will be finalized per consumer panel study directed by P&G.

 

*Confidential Treatment Requested.

 

36

 

EXHIBIT F

 

MICRONEEDLE TECHNOLOGY

 

The Microneedle Technology consists of the following patents, patent applications, trade secrets and know-how:

 

P&G MICRONEEDLE PATENTS AND PATENT APPLICATIONS

 

[*]

 

P&G MICRONEEDLES TRADE SECRETS & KNOW HOW

 

[*]

 

*Confidential Treatment Requested.

 

 

EXHIBIT G

 

CORIUM TRADEMARKS

 

	
MARK
    	
 
    	
TRADEMARK CLASS(ES)
    	
 
    	
STATUS, PUBLIC NUMBERS, FILING
   AND PUBLICATION DATES
    
	
CORIUM
    	
 
    	
 
    	
 
    	
Allowed.
    
	
CORPLEX
    	
 
    	
 
    	
 
    	
Pending.EXHIBIT 10.23

 

	
[*]
    	
 
    	
Certain   confidential information contained in this document, marked by brackets, has   been omitted and filed separately with the Securities and Exchange Commission   pursuant to Rule 406 of the Securities Act of 1933, as amended.
    

 

RESTATED SUPPLY AGREEMENT

 

Contract Manufacturing for Teeth Whitening Strip Products

 

This is an agreement (“AGREEMENT”) made and entered into between the BUYER and SELLER (“PARTY,” collectively “PARTIES”).

 

A.            The PARTIES have entered into that certain License Agreement dated June 13, 2005, as amended or modified from time to time (the “LICENSE AGREEMENT”), and that certain Product Development and Services Agreement dated June 13, 2005, as amended or modified from time to time (the “DEVELOPMENT AGREEMENT”).

 

B.            Pursuant to the terms of the LICENSE AGREEMENT and the DEVELOPMENT AGREEMENT, the PARTIES have collaborated in the development of tooth whitening products incorporating certain SELLER technology.

 

C.            The PARTIES have entered into that certain Supply Agreement (the “SUPPLY AGREEMENT”) dated August 21, 2008.

 

D.            The PARTIES acknowledge and agree that it is in the best interests of the PARTIES to restate certain aspects of the SUPPLY AGREEMENT and to continue to work collaboratively to address changes that may be necessary during the term of this AGREEMENT. Each PARTY will give reasonable consideration to the requests of the other PARTY relating to changes in capacity, specifications, and other terms and provisions set forth herein, in light of the PARTIES’ respective intellectual property interests, supply requirements, and issues regarding costs and feasibility of execution of any proposed change.

 

1.0                               PARTIES.

 

1.1                               BUYER.

 

The Procter & Gamble Manufacturing Company, One Procter & Gamble Plaza, Cincinnati, Ohio 45202 (and any Affiliates of The Procter & Gamble Company as defined below), hereinafter referred to as, “BUYER”

 

1.1.1                     AFFILIATES.

 

Affiliates means any corporation, limited liability company or other legal entity which directly or indirectly controls, is controlled by, or is under common control

 

 

with a Party or its successors, or assigns, or any successor or assign of such an entity. For the purposes of this section, “control” shall mean the direct or indirect ownership of at least fifty percent (50%) of (i) the outstanding shares on a fully diluted basis or other voting rights of the subject entity to elect directors, or if not meeting the preceding, any entity owned or controlled by or owning or controlling at the maximum control or ownership right permitted in the country where such entity exists, or (ii) or such other arrangement as constitutes the direct or indirect ability to direct the management, affairs or actions of such entity.

 

1.2                               SELLER.

 

Corium International, Inc., 235 Constitution Drive, Menlo Park, CA 94025, hereinafter referred to as “SELLER.”

 

2.0                               GOODS.

 

2.1                               SPECIFICATIONS.

 

Subject to the terms and conditions of this Agreement, SELLER shall sell and BUYER shall purchase (1) the oral care layer (which includes the proprietary formulation thereof) that contains and allows for the controlled release of whitening agent when used as a component of tooth-whitening strip products, and (ii) bulk strip material, essentially consisting of the oral care layer, a polymer film backing and a release liner suitable for die-cutting, forming, and packaging into the finished product being produced by BUYER, in accordance with the terms and conditions set forth in this AGREEMENT (“GOODS”) in strict compliance with the specifications as set forth in the Specification Sheet(s) which are attached hereto as Exhibit 2.1 and as may be amended from time to time in accordance with the Section entitled SPECIFICATION CHANGES (“SPECIFICATIONS”).

 

SELLER shall be responsible for certain manufacturing obligations, including but not limited to the sourcing and warehousing of raw materials and packaging of the in process materials, compounding, component preparation, incoming and outgoing quality control, fabrication, inspecting, labeling, of any GOODS, or any part thereof, as well as associated activities, in accordance with the SPECIFICATIONS and the terms and conditions of this AGREEMENT (All such activities shall be referred to herein as “MANUFACTURE,” “MANUFACTURING,” “MANUFACTURED”).

 

2.2                               SPECIFICATION CHANGES.

 

2.2.1                     GENERAL.

 

From time to time, BUYER may request that the SPECIFICATIONS be revised, supplemented or otherwise amended by giving written notice to SELLER.  Any alteration to the SPECIFICATIONS shall be agreed between the parties, and such agreement will include, but not be limited to, agreeing on the implications (if any) on the price of the GOODS and the cost of validation of any such alteration.  Any SPECIFICATIONS revised in accordance with this AGREEMENT shall become effective thirty (30) calendar days after BUYER and SELLER have agreed upon the proposed revision (“CHANGE DATE”). SELLER shall consider

 

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any such request for change to the SPECIFICATIONS m accordance with the approach set forth in Recital C to this AGREEMENT.  If, however, a change in the SPECIFICATIONS is requested by either PARTY as the result of BUYER or SELLER being approached by or sued by a third party concerning an allegation of patent infringement relating to the development, manufacture, use, distribution, or sale of the GOODS, the PARTIES shall first follow the procedure described above for considering any proposed change to the SPECIFICATIONS.  If, following such process the PARTIES have not agreed to change the SPECIFICATIONS as requested by BUYER upon receiving notice within a reasonable time, but not to exceed thirty (30) calendar days then BUYER shall be entitled to: (1) terminate this AGREEMENT pursuant to the terms of Section 7.3, provided, however, that such right may be exercised at any time, (2) purchase the GOODS from other suppliers in which case the obligations of BUYER and SELLER hereunder shall be reduced accordingly, or (3) continue to purchase under this AGREEMENT.

 

2.3                               PRODUCTION PROCESS AND/OR RAW MATERIAL CHANGES.

 

SELLER shall not make (a) any change to the raw materials and pack material, or any portion or component of the GOODS, or (b) any material change to the production process, the production equipment or the production location(s) relating to SELLER’s performance under this AGREEMENT, in either case unless and until SELLER has obtained BUYER’s prior written consent. BUYER will give reasonable consideration to such proposed changes in accordance with the approach set forth in Recital C to this AGREEMENT, but shall be entitled to reject any such change. In the event that BUYER determines to reject any such proposed change it shall advise SELLER of the reasons for such rejection. If, however, the change in the raw materials, pack materials, any portion or component of the GOODS, or change to the production process, the production equipment or the production location is requested by BUYER as the result of BUYER or SELLER being approached by or sued by a third party concerning an allegation of patent infringement relating to the raw materials, pack materials, any portion or component of the GOODS, or change to the production process, the production equipment or the production location, and the PARTIES have not agreed to make the change as requested by BUYER upon receiving notice within a reasonable time, but not to exceed thirty (30) calendar days then BUYER shall be entitled to (I) terminate this AGREEMENT pursuant to the terms of Section 7.3, provided, however, that such right may be exercised at any time, including prior to the first anniversary of the first shipment of GOODS hereunder, (2) purchase the GOODS from other suppliers in which case the obligations of BUYER and SELLER hereunder shall be reduced accordingly, or (3) continue to purchase under this AGREEMENT.

 

2.4                               MATERIAL, PRODUCT OR EQUIPMENT DISPOSAL.

 

In the event that any raw material, packaging material or other item (other than manufacturing equipment) used by SELLER in connection with the production of GOODS for BUYER, or any GOODS produced by SELLER, requires disposal while under SELLER’s ownership or control, SELLER is responsible for ensuring that such disposal is carried out under SELLER’s direct control and supervision in order to ensure that such items are made entirely unsalvageable. SELLER shall not contract out such disposal or involve any third parties in this process without the prior written consent of BUYER Upon expiration or termination of this AGREEMENT, SELLER shall compile an inventory of all items to be disposed of for agreement with BUYER as to which items require disposal and which will be transferred to BUYER. With

 

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respect to those items to be disposed of by SELLER, SELLER is responsible for taking reasonable steps to prevent the counterfeiting of the GOODS and BUYER’s current or previously marketed products or the infringement of BUYER’s IP Rights.

 

2.5                               SUPPLY OF MATERIALS.

 

At BUYER’S option and subject to SELLER’S approval, BUYER may supply, or arrange for supply of certain raw materials forming a part of the GOODS or used in the MANUFACTURING (“MATERIALS”) from third parties (“THIRD PARTY SUPPLIER”) as set forth herein below to SELLER.

 

2.5.1                     QUALIFIED SUPPLIERS.

 

SELLER’S current suppliers as listed in the then current QUALTIY AGREEMENT and attached hereto as reference shall be deemed qualified by BUYER for all purposes under this AGREEMENT. Neither BUYER nor SELLER shall supply or arrange for supply of MATERIALS from third parties other than those set forth in the QUALITY AGREEMENT without the other PARTY’s prior written consent,

 

3.0                               ACCEPTANCE.

 

3.1                         RETURN, REWORK & SCRAPPING.

 

Upon receipt of GOODS, BUYER shall inspect such GOODS for conformance with the SPECIFICATIONS. Any GOODS not rejected within [*] will be deemed accepted; provided, however, that such acceptance of GOODS shall not constitute a waiver of any claim BUYER may have under this AGREEMENT, including, but not limited to, claims under Section 9.

 

Upon SELLER’s receipt of a notice of nonconformance from BUYER with respect to rejected GOODS, (i) SELLER will rework or replace defective GOODS and materials, at no additional cost to BUYER; or (ii) BUYER may return such GOODS for credit to BUYER, at the full PRICE, plus the actual, expenses incurred by BUYER in returning the GOODS to SELLER (such as packaging and transportation costs) ; or (iii) SELLER and BUYER may agree to alternative solutions; however, BUYER is always free to elect either (i) or (ii) above. In the event of any dispute regarding whether any GOODS rejected by BUYER conform to the SPECIFICATIONS, the parties shall submit such GOODS for testing by an independent laboratory to determine whether such GOODS do or do not meet the SPECIFICATIONS. The non-prevailing party shall pay the fees for such testing and the costs associated with shipping the GOODS to the laboratory for testing. The rights and remedies set forth in this Section 3.1 are not exclusive and nothing herein shall limit the rights and remedies either party may have under this AGREEMENT or at LAW.

 

In accordance with the approach set forth in Recital D of this AGREEMENT, the PARTIES will evaluate increases or adjustments to the thirty day rejection period described above in the event of changes in product characteristics or stability.

 

*Confidential Treatment Requested.

 

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3.2                               QUALITY CONTROL AND TESTING.

 

3.2.1                     TESTING AND CERTIFICATE OF ANALYSIS.

 

Prior to the use of any article(s), chemical or other component(s) or composition(s) in the MANUFACTURING of the GOODS, SELLER shall, at SELLER’s expense, test, or otherwise determine, that such article(s), chemical or other component(s) or composition(s) are in compliance with the SPECIFICATIONS and the QUALITY AGREEMENT (“GMP”). In no case shall SELLER use any article(s), chemical or other component(s) or composition(s) not in compliance with the SPECIFICATIONS and GMP in the MANUFACTURING of the GOODS. SELLER’s quality assurance department shall provide certificates of analysis to BUYER relating to each shipment of GOODS concurrently with the DELIVERY of such GOODS.

 

3.2.2                     SAMPLING

 

At SELLER’s expense, SELLER shall retain from each roll of GOODS MANUFACTURED samples of two (2) linear feet for a period required by GMP or LAWS, and will provide BUYER with duplicate samples.

 

3.2.3                     THIRD PARTY INQUIRIES.

 

SELLER shall advise BUYER of any proposed or unannounced visit or inspection by any governmental authority in accordance with the QUALITY AGREEMENT.

 

3.2.4                     QUALITY ASSURANCE.

 

SELLER represents and warrants that SELLER shall be at all times in material compliance with the quality standards as described in the Quality Agreement attached hereto as Exhibit 3.2.4 (the “QUALITY AGREEMENT”).

 

4.0                               QUANTITY.

 

4.1                               PURCHASE & SALE OBLIGATIONS.

 

BUYER has provided SELLER with a non-binding [*] purchase forecast for GOODS for the period beginning January 1, 2010, detailing the volumes for each product by month, including requirements for launch quantities, retail product, sampling and promotions. Thereafter, [*] prior to the start of the next succeeding calendar quarter, BUYER shall provide seller a new non-binding purchase forecast for GOODS detailing the projected volumes for each consecutive [*] period (the “Rolling Forecast”). By way of example, on each [*], a Rolling Forecast will be submitted for the [*] period beginning on [*], on each [*], a Rolling Forecast will be submitted for the [*] period beginning on [*], and on each [*], a Rolling Forecast will be submitted for the [*] period beginning on [*].

 

The Rolling Forecasts as submitted above will dictate the average [*] volumes for the upcoming [*] and all Purchase Orders submitted during that [*] will be at the corresponding price for that Capacity Window, regardless of the actual [*] Purchase Order levels. A Capacity

 

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Window is the set of volume ranges of production available for the order of Products as set forth in Exhibit 6.1. So long as the average [*] volumes submitted in Purchase Orders during any given calendar quarter remain within the Capacity Window determined by the Rolling Forecast submitted prior to that quarter, the parties agree to “smooth out” the manufacture of the product to meet BUYER’S delivery schedule as provided in the [*] Purchase Orders and to maximize the efficiency of SELLER’S production staffing schedule. For the avoidance of doubt, if BUYER submits a [*] Purchase Order for GOODS outside of the amount in the Capacity Window, SELLER will accept such Purchase Order if the total average [*] volumes remain within the applicable Capacity Window. Should BUYER’S demand for GOODS move outside of the current Capacity Window in the middle of a [*], the parties will negotiate options to reset the [*] period to adjust to market conditions.

 

Additionally, BUYER will submit Purchase Orders on a [*] basis in accordance with section 4.2 below, and at all times there will be [*] of firm production orders and [*] of estimated planned orders in the system. The firm production orders, combined with the planned orders will constitute BUYER’s authorization to SELLER to purchase the raw materials necessary to fill the orders for such period. Should the materials ordered in [*] period not be used within [*], BUYER will purchase the excess materials from SELLER at SELLER’s actual cost.

 

In accordance with the approach set forth in Recital D of this AGREEMENT, the PARTIES will collaborate on capacity increases as necessary to meet increases in BUYER’s forecasted demand for GOODS.

 

4.2                               PURCHASE ORDERS.

 

Each purchase order from BUYER to SELLER shall specify the exact quantity of GOODS requested, the scheduled delivery date for such quantity (the “DELIVERY DATE”) and packaging and shipping instructions. Each purchase order for GOODS shall be in accordance with Section 4.1 above with respect to order quantities. The minimum production lot size is [*] of GOODS per [*]. The maximum production capacity is [*]. In no event will a DELIVERY DATE scheduled by BUYER be less than [*] after the date the purchase order is received by SELLER, except with the prior written consent of SELLER. SELLER shall acknowledge each purchase order within [*] after receipt. SELLER shall accept and supply GOODS in accordance with the terms of purchase orders issued in compliance with Sections 4.1 and 4.2 and the maximum capacity set forth in Section 4.1 above. Once accepted by SELLER, BUYER may cancel or reschedule purchase orders for GOODS only with SELLER’s prior written approval. SELLER shall deliver GOODS at the times specified in BUYER’s purchase orders, unless such orders have been rejected by SELLER in accordance with this Section 4.2.

 

4.3                         REDUCTION OR DISCONTINUANCE OF PURCHASES.

 

Notwithstanding Section 4.2, SELLER acknowledges and agrees that BUYER may deem it necessary, from time to time, to reduce or discontinue purchases of the GOODS covered by this AGREEMENT because of (i) product or packaging reformulation; (ii) process change; (iii) changes in technology, (iv) changes in the laws governing the GOODS, the sale or distribution of the GOODS; (v) changes in the sale or distribution of the GOODS; (vi) the discontinuance of the product incorporating the GOODS; (vii) divestiture of the business in

 

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which the GOODS reside; (viii) BUYER exercises its right to relocate production in accordance with the LICENSE AGREEMENT; or (ix) any other similar reasons. In such event BUYER shall provide SELLER with reasonable, but not less than [*], prior written notice of any such reduction or discontinuance, and BUYER shall be entitled to thereupon reduce or discontinue further purchases of GOODS from SELLER hereunder without any penalty, liability or further obligation.

 

5.0                               RECALLS

 

5.1                         NOTICE OF RECALL.

 

If any governmental authority having jurisdiction over the GOODS or the products into which the GOODS are incorporated requires BUYER to recall the product into which the GOODS are incorporated, BUYER shall immediately notify SELLER and review with SELLER the basis for the recall, BUYER shall make the final determination regarding the need for any voluntary recall, and, subject to applicable legal requirements, the manner of conducting any voluntary or mandatory recall.

 

5.2                               LOSS OF RECALL.

 

BUYER will be responsible for all costs associated with any recall. SELLER will reimburse BUYER for that portion of any actual, out of pocket expenses incurred in conducting a recall that is attributable to (i) a failure of the GOODS to meet the SPECIFICATIONS, or any other breach by SELLER of its representations, warranties, or other obligations under this AGREEMENT, or (ii) SELLER’s gross negligence, intentional or willful misconduct. In the event that a recall is attributable to SELLER’s gross negligence, intentional or willful misconduct, SELLER shall reimburse BUYER for any and all damages, losses, expenses, and costs incurred in connection with conducting such recall, including indirect, incidental, special, punitive, and consequential damages. For purposes of this AGREEMENT, “gross negligence” shall mean any act or failure to act (whether sole, joint or concurrent) which is in reckless disregard of or indifference to the harmful consequences of such action.

 

In the event that scientific testing and investigation costs are incurred in order to determine whether or not SELLER bears any responsibility for the recall, BUYER shall pay for such testing, subject to reimbursement as described above it if is determined that SELLER bears some portion of the responsibility for the recall.

 

6.0                               PRICE AND TAXES.

 

6.1                               PRICE AND TRUE-UP.

 

The price(s) for the GOODS, which is net of TAXES, shall be as set forth in Exhibit 6.1 (“PRICE”). The PRICE shall include any goods and services necessary to fulfill this AGREEMENT. Payment shall be made in US dollars. Each calendar quarter, BUYER and SELLER shall agree as to which of the price tiers set forth in Exhibit 6.1 is appropriate for the next calendar quarter based on the Rolling Forecast as described in section 4.1. In the event actual volume in a quarter falls outside of the agreed to price tier, BUYER and SELLER will reconcile to the appropriate price tier.

 

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6.2                               TAXES.

 

6.2.1                     SELLER shall be responsible for and pay all fees, expenses, charges, costs, and taxes payable relating to the raw materials and packaging used by SELLER in connection with the production of the GOODS imposed by a governmental or regulatory body (including, without limitation, any sales, use, excise, value-added, services, consumption, and other taxes and duties) the taxable incident of which occurs prior to or upon buyer’s receipt of title of goods (“TAXES”). For the avoidance of doubt, TAXES shall not mean to include any import/export duties, levies or charges or customs related expenses.

 

6.2.2                     SELLER shall be responsible for and pay any personal property TAXES on property it owns or leases, for franchise and privilege TAXES on its business, and for TAXES based on its net income or gross receipts.

 

6.2.3                     SELLER’s invoices shall separately state the amount of any TAXES that SELLER is charging BUYER, to the extent applicable. SELLER shall make available to BUYER any resale certificates, information regarding out-of-state or out-of-country sales or use of equipment, materials or services, and other exemption certificates or information reasonably requested by BUYER.

 

7.0                               CONTRACT PERIOD & TERMINATION.

 

7.1                               CONTRACT PERIOD.

 

The period of this AGREEMENT (“PERIOD”) shall begin on June 1, 2010 (“EFFECTIVE DATE”) and end on May 31, 2013, unless earlier terminated in accordance with the provisions hereof. BUYER shall have the option, in its sole discretion, to extend the PERIOD, upon the same terms and conditions as contained herein, other than Exhibits 6.1 (PRICE) and 11.3 (ASSIGNEES REQUIRING CONSENT), which shall be subject to agreement between the PARTIES prior to any renewal becoming effective, for [*] (“RENEWAL PERIOD”) by providing written notice to SELLER at least [*] prior to the expiration of the PERIOD. The PERIOD and the RENEWAL PERIOD may hereinafter be referred to collectively as the “PERIOD.”

 

7.2                               EARLY TERMINATION.

 

In the event that (i) SELLER or BUYER breaches any representation or, warranty of this AGREEMENT or the LICENSING AGREEMENT, or materially breaches a covenant or other material obligation set forth in this AGREEMENT or the LICENSING AGREEMENT, and fails to cure such breach as promptly as practicable but in any event within sixty (60) calendar days of notice of such breach by the other PARTY including reasonable particulars of the alleged breach, (ii) SELLER becomes unable to pay its bills as they become due in the ordinary course, (iii) a trustee or receiver of SELLER’s property is appointed, and such trustee or receiver has not been removed within [*], (iv) SELLER makes an assignment for the benefit of creditors, (v) a voluntary petition in bankruptcy is filed by SELLER, (vi) an involuntary petition in bankruptcy is filed against SELLER and such involuntary petition has not been withdrawn or dismissed within [*], or (vii) SELLER terminates or liquidates its business, then BUYER or SELLER, as the case may be, shall be entitled to (a) terminate this AGREEMENT at any reasonable time thereafter with immediate effect and without any penalty, liability or further obligation; (b) purchase from other suppliers, in which case the obligations of BUYER and SELLER hereunder shall be reduced accordingly; or (c) continue purchases under this AGREEMENT. The termination provisions set out in this Section are not exclusive, and are in

 

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addition to, and not in limitation of, BUYER’s or SELLER’s rights under this AGREEMENT or at LAW.

 

7.3                         OPTION TO TERMINATE.

 

Either party may terminate this Agreement at any time after the first anniversary of the first shipment of GOODS hereunder, on not less than [*] advance written notice to the other party, for any reason whatsoever. Following the notice of termination given under this Section 7.3, SELLER will fully cooperate with BUYER to facilitate the timely and orderly transition of production capability to BUYER or a third party designated by BUYER upon the effective date of termination. In the event that BUYER desires technical or other assistance from SELLER following the effective date of termination hereunder, SELLER would make such assistance available at its standard rate for similar services.

 

7.4                               EFFECT OF TERMINATION.

 

Termination or expiration of this Agreement shall not relieve either PARTY of any liability or obligation (including payment obligations for GOODS or raw materials ordered by SELLER in accordance with BUYER’s forecasts) it may have to the other arising out of, or related to, acts or omissions occurring prior to such termination or expiration. In case of termination or expiration of this Agreement by BUYER, SELLER shall make available for BUYER’s immediate removal any of BUYER’s property then in the possession of SELLER or any of its subcontractors, or under SELLER’s or any of its subcontractors’ control. SELLER in no case shall be entitled to any payment, compensation or indemnity for loss of goodwill, anticipated sales or prospective profits, or because of expenditures, investments or other matters.

 

7.5                               UNSHIPPED GOODS AND MATERIALS.

 

Upon termination or expiration of this AGREEMENT, (i) BUYER shall purchase (a) any portion of unshipped GOODS, and/or (b) any portion of article(s), chemical or other component(s) or composition(s) at SELLER’s cost (as defined by GAAP) as of the date of termination or expiration in which case SELLER shall arrange for the prompt shipment to BUYER at the address(es) designated by BUYER, at BUYER’s expense.

 

8.0                               SHIPMENT, PAYMENT & DELIVERY.

 

8.1                               SHIPMENT/DELIVERY.

 

As used in this AGREEMENT, the term “DELIVERY” and its derivatives mean delivery “FOB, SELLER’s FACILITY.”  SELLER shall retain the risk of loss in accordance with these terms. Title shall pass concurrently with the risk of loss passing from SELLER to BUYER. SELLER will have the carriers issue their bills of lading in accordance with these terms.

 

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8.2                               FREIGHT TERMS.

 

For all shipments of GOODS to BUYER, BUYER shall specify the mode of shipment and carrier. All GOODS delivered pursuant to the terms of this AGREEMENT shall be packed in accordance with SPECIFICATIONS.

 

8.3                               PAYMENT.

 

8.3.1                     DUE DATE FOR PAYMENT.

 

The due date for payment shall be [*] from the date the correct invoice is received by BUYER.

 

9.0                               REPRESENTATIONS AND WARRANTIES.

 

9.1                               GENERAL REPRESENTATIONS AND WARRANTIES.

 

SELLER represents and warrants that as of DELIVERY of the GOODS to BUYER, and for a period of [*] thereafter, the GOODS and any parts thereof (article(s), chemical or other component(s) or composition(s)), shall:

 

(i)            be in strict compliance with all SPECIFICATIONS applicable to such GOODS and any parts thereof; and otherwise in conformity with all documentation for such GOODS;

 

(ii)        to the best of SELLER’s knowledge, be safe for use in the product into which the GOODS will be incorporated by BUYER as described in Section 2.1;

 

(iii)    be free from material defects, whether latent or patent, including contamination or adulteration; and

 

(iv)     be in material compliance with all applicable LAWS.

 

9.2                               TITLE AND LIENS.

 

9.2.1                     TITLE.

 

SELLER represents and warrants that upon DELIVERY of the GOODS that SELLER shall pass to BUYER, and BUYER shall receive, good and marketable title to such GOODS, free and clear of all liens, claims, security interests, pledges, charges, mortgages, deeds of trusts, options, or other encumbrances of any kind (“LIENS”).

 

9.2.2         LIENS

 

SELLER shall at all times keep any of BUYER’s property in the possession of SELLER or any of its subcontractors or under SELLER’s or any of its subcontractors’ control free and clear of any LIENS, and hereby grants BUYER the right to file such protective financing or similar statements to confirm and record BUYER’s ownership thereof and to the extent possible, identified as the property of the BUYER where appropriate and shall segregate

 

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BUYER’s property from other materials and shall store BUYER’s property in an organized, secure, controlled and monitored inventory environment at SELLER’s facility.

 

9.3                   INTENTIONALLY DELETED.

 

9.4                   CHILD LABOR AND FORCED LABOR.

 

SELLER shall not employ children, prison labor, indentured labor, bonded labor or use corporal punishment or other forms of mental and physical coercion as a form of discipline. In the absence of any national or local law, BUYER and SELLER agree to define “child” as less than 15 years of age. If local LAW sets the minimum age below 15 years of age, but is in accordance with exceptions under International Labor Organization Convention 138, the lower age will apply. BUYER has the right to make unannounced inspections, and conduct appropriate audits of books and records, of all of SELLER’S premises and any other premises employed in connection with SELLER’s performance under this AGREEMENT, to ensure compliance with this Section. With respect to the obligations set forth in this Section 9.4, SELLER shall comply with any reasonable code of conduct or similar policy statement promulgated by BUYER from time to time.

 

9.5             CORPORATE AUTHORITY.

 

9.5.1                     Of Both Parties. Each Party represents and warrants o the other Party that, as of the Effective Date:

 

9.5.1.1                                                           The execution, delivery and performance of this Agreement and the consummation by the warranting Party of the transactions contemplated hereby have been duly authorized by all necessary corporate action of the warranting Party, as appropriate.

 

9.5.1.2                                                           This Agreement has been duly executed and delivered by the warranting Party, and constitutes a valid and legally binding obligation of the warranting Party enforceable against such Party in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to the general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or law).

 

9.5.1.3                                                           The warranting Party has not and will not enter into any agreement, the terms and conditions of which, would be inconsistent or in derogation with any of the terms and conditions hereof.

 

9.5.1.4                                                           The warranting Party is duly organized and validly existing under the laws of the jurisdiction of its organization, and has full power, authority and legal right to execute, deliver and perform this Agreement, and has taken all necessary action to authorize the execution, delivery, and performance of this Agreement.

 

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9.6             COMPLIANCE WITH LAWS.

 

SELLER represents, warrants and covenants that SELLER is, and shall at all times be, in all material respects in compliance with all applicable governmental, legal, regulatory and professional requirements, including, without limitation, all applicable laws, codes, regulations, rules, ordinances, judgments, orders and decrees, including, without limitation, those related to fair trade and antitrust, customs, immigration, labor, employment, working conditions, worker health and safety, branding and labeling, adulteration and contamination, board of health and environmental matters and all applicable privacy laws (regulations, rules, opinions or other governmental and/or self-regulatory group requirements or statements of position) (collectively “LAWS”). SELLER shall promptly notify BUYER if SELLER receives any notice, demand, summons or complaint from any governmental or regulatory authority, agency or other body relating to the subject matter of this AGREEMENT or SELLER’s performance in accordance with this AGREEMENT, and shall take all steps, at SELLER’s expense, to remedy and resolve any issues raised therein as promptly as practicable.

 

9.7                               APPLICABILITY AND SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

 

SELLER’s representations and warranties with respect to each DELIVERY of the GOODS shall survive as follows: (i) as to the GOODS themselves the representations and warranties set forth in Section 9.1 (i) through (iv) shall survive for a period of [*] from DELIVERY; (ii) for GOODS incorporated into the product being produced by or for BUYER (“FINISHED PRODUCT”) within [*] of DELIVERY the representations and warranties set forth in Section 9.1 (i) through (iv) will survive for [*] from DELIVERY; (iii) for the GOODS themselves not incorporated into products within [*] of DELIVERY or for the GOODS incorporated into FINISHED PRODUCT more than [*] after DELIVERY, only the warranty set forth in Section 9.1(iii) shall remain in effect and only as to latent defects. For warranty claims related to an asserted latent defect, BUYER shall have the burden of establishing that the defect existed as of DELIVERY of GOODS to BUYER, and that the GOODS have been stored in accordance with the applicable MSDS sheets for such GOODS. For warranty claims that GOODS incorporated into FINISHED PRODUCT, are not in compliance with an applicable warranty, the BUYER shall first establish that the claimed defect is as to the GOODS and not some other aspect of the product.

 

Any other of SELLER’s representations, warranties, covenants and other obligations set forth in this AGREEMENT shall be subject to all applicable statutes of limitation, similar statutes and other similar defenses provided by law or equity.

 

10.0                        INDEMNIFICATION AND INSURANCE.

 

10.1                        SELLER’S INDEMNIFICATION OF BUYER.

 

SELLER shall, in addition to SELLER’s obligation to indemnify BUYER, its parent, its affiliates and subsidiaries and their respective agents, officers, directors and employees (“BUYER INDEMNITEE”) by law, in equity or otherwise, at its own expense, at BUYER’s option defend, indemnify and hold harmless BUYER INDEMNITEE from and

 

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against all third-party claims, allegations, demands, liabilities, obligations, charges, fines, losses, damages, penalties, interest, costs and expenses, including, without limitation, reasonable legal fees, experts’ fees, and expenses and any amounts paid in settlement (collectively “CLAIMS”), to the extent directly attributable to arising from or relating to any of the following: (i) SELLER’s breach of or inaccuracy in, any representation, warranty, or other obligation set forth in this AGREEMENT; (ii) the gross negligence, bad faith, intentional or willful misconduct of SELLER or subcontractors or their respective employees or other representatives; (iii) SELLER’s use of any subcontractors arising out of or relating to SELLER’s performance under this AGREEMENT; or (iv) bodily injury, death or damage to personal property arising out of and relating to SELLER’s negligence in its performance under this AGREEMENT.

 

10.2                        INTELLECTUAL PROPERTY INFRINGEMENT INDEMNIFICATION.

 

Intellectual Property (as defined in the LICENSE AGREEMENT) infringement (if any), and related indemnification (if any) by a PARTY including related procedures, shall continue to be exclusively governed by the LICENSE AGREEMENT.

 

10.3                        INSURANCE.

 

10.3.1              GENERAL INSURANCE POLICY REQUIREMENTS.

 

For the PERIOD, SELLER shall maintain in full force and effect the insurance coverage set forth in Section entitled INSURANCE COVERAGE with underwriters acceptable to BUYER and having an A. M. Best’s rating of “A VIII” or better or its equivalent rating where not available. For the PERIOD, SELLER shall cause its subcontractors to maintain at their own expense reasonable insurance coverage. SELLER shall provide BUYER with a copy of Certificate(s) of Insurance. All insurance policies shall provide for a thirty (30) calendar days prior written notice to BUYER in the event of termination, cancellation, non renewal or a material change to the requirements as set forth in this Section entitled INSURANCE. All insurance policies shall be primary without right of contribution from any of BUYER’s insurance carriers.

 

10.3.2              INSURANCE COVERAGE.

 

10.3.2.1                Commercial General Liability including [*] with the following limits of liability:

 

(i)                          [*]; and

 

(ii)                       [*]

 

10.3.2.2                WORKERS’ COMPENSATION.

 

Workers’ Compensation will provide statutory benefits as prescribed by the LAW of the State, Province or Countries in which work is performed to SELLER’s employees due to a job-related injury resulting from an accident or occupational disease. Employers’ Liability insurance is to be provided in the minimum amount of U.S. [*] per

 

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occurrence for all sums that the insured becomes legally obligated to pay as damages because of bodily injury by accident or disease sustained by the insured arising out of and in the course of employment.

 

10.3.3              ADDITIONAL INSURED.

 

The Commercial General Liability policy, if required hereunder, shall include BUYER INDEMNITEE as additional insured in connection with the activities contemplated by the scope of this AGREEMENT to be stated explicitly on the Certificate(s) of Insurance.

 

10.3.4              WAIVER OF SUBROGATION.

 

SELLER hereby irrevocably and unconditionally waives and shall cause its insurers to irrevocably and unconditionally waive any rights of subrogation for claims against BUYER INDEMNITEE, to be documented to BUYER’s reasonable satisfaction.

 

10.3.5              LIABILITY OF PARTIES.

 

IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR LOSS OF PROFITS, OR INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT IN EXCESS OF [*]; PROVIDED HOWEVER, THAT THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS ARISING OUT OF OR RELATING TO BAD FAITH, GROSS NEGLIGENCE, INTENTIONAL OR WILLFUL MISCONDUCT OF A PARTY, ITS EMPLOYEES OR OTHER REPRESENTATIVES; (C) THIRD-PARTY CLAIMS, INCLUDING CLAIMS FOR PERSONAL INJURY OR PROPERTY DAMAGE; (D) ANY DAMAGES TO BUYER’S PERSONAL PROPERTY.

 

SELLER’s compliance with the Section entitled INSURANCE shall not relieve SELLER of any liability to BUYER arising under any other provision of this AGREEMENT except to the extent that such monies recovered are paid to BUYER to reduce SELLER’s obligations to BUYER. SELLER shall be liable for any and all deductibles it may incur in connection with any of the policies listed in the Section entitled INSURANCE.

 

11.0                        MISCELLANEOUS PROVISIONS.

 

11.1                        CONFIDENTIALITY.

 

Section 12 of the LICENSE AGREEMENT shall continue to apply to this AGREEMENT and its subject matter.

 

11.2                        FORCE MAJEURE.

 

Should either PARTY be prevented from performing its obligations under this AGREEMENT by an event of force majeure, such as an earthquake, typhoon, flood, fire, act of war, act of the public enemy, act of terrorism, act of God or any other unforeseen event the happening and consequences of which are unpreventable and unavoidable, the prevented

 

*Confidential Treatment Requested.

 

14

 

PARTY shall notify the other PARTY by the most expedient means available (fax, telex or express mail being acceptable in any event) without any delay, and within fifteen (15) days thereafter provide detailed information of the events explaining the reason for its inability to perform or delay performance of all or part of this AGREEMENT, and such PARTY’s obligations to perform under this AGREEMENT will be deemed suspended during the period required to remove the force majeure event. Neither PARTY shall lose any rights hereunder or be liable to the other PARTY for damages or losses on account of its failure to perform as a result of any such force majeure event; provided however, that either PARTY shall have the right to terminate this AGREEMENT if the force majeure event is not removed after [*].

 

11.3                        ASSIGNMENT.

 

Except as expressly permitted herein, SELLER may not assign, whether by operation of law or otherwise, any right or delegate any obligation under this AGREEMENT without the prior written consent of BUYER, which shall not be unreasonably withheld by BUYER, and any attempted assignment or delegation except as permitted herein shall be null and void. Notwithstanding the foregoing, SELLER may assign this AGREEMENT in the event of a sale by SELLER of substantially all of its business to which this AGREEMENT relates without BUYER’s prior written consent except in the event that the buyer is any of the entities identified in Exhibit 11.3 hereto, which Exhibit may be amended from time to time to add or delete identified entities, or otherwise in accordance with Section 7.1.  Any assignment or transfer of this AGREEMENT, pursuant to the preceding sentences, by Corium, or its successors or assigns, shall include a covenant in writing to P&G by such assignee or successor agreeing to be bound by all of the terms and conditions of this AGREEMENT applicable to SELLER. BUYER may transfer or assign this AGREEMENT, in whole or in part, or any of its rights or obligations hereunder, by delegation, operation of law, or otherwise, without the prior written consent of SELLER.

 

11.4                        CHANGE IN SELLER’S OWNERSHIP AND/OR CHANGE IN CONTROL

 

11.4.1              For the purposes of this section, “control” shall mean the direct or indirect ownership of greater  than fifty percent (50%) of the outstanding shares on a fully diluted basis or other voting rights of the subject entity to elect directors, or if not meeting the preceding, any entity owned or controlled by or owning or controlling at the maximum control or ownership right permitted in the country where such entity exists, or such other arrangement as constitutes the direct or indirect ability to direct the management, affairs or actions of such entity.

 

11.4.2              To the extent legally permissible, SELLER shall provide BUYER reasonable notice in writing prior to any change in control.

 

11.4.3              In case of a change in control to any one of the entities identified in Exhibit 11.3, BUYER shall be entitled to terminate this AGREEMENT, in whole or in part, without any penalty, liability, or further obligation with [*] written notice to SELLER.

 

11.5                        INDEPENDENT CONTRACTOR STATUS.

 

The PARTIES are and shall remain independent contractors with respect to each other, and nothing in this AGREEMENT shall be construed to place the PARTIES in the

 

*Confidential Treatment Requested.

 

15

 

relationship of partners, joint ventures, fiduciaries or agents.  Neither PARTY is granted any right nor any authority to assume or to create an obligation, or responsibility, express or implied, on behalf of or in the name of the other, nor bind the other in any manner whatsoever.

 

The SELLER is the sole employer of all employees performing hereunder and is responsible for all matters concerning such employees. In no case shall SELLER, the employees, workers, laborers, agents or subcontractors of SELLER be deemed employees of BUYER.

 

11.6                        MODIFICATION AND WAIVER.

 

No waiver of any provision of this AGREEMENT shall be valid or binding unless in writing and executed by the PARTY against whom enforcement is sought. No waiver by either PARTY of any breach, or the failure of either PARTY to enforce any of the terms and conditions of this AGREEMENT, shall affect, limit or waive that PARTY’s right to enforce and compel compliance with all terms and conditions of this AGREEMENT, or to terminate this AGREEMENT according to its terms. No modification or amendment of any provision of this AGREEMENT shall be valid or binding unless it is executed and delivered by both PARTIES hereto m writing subsequent to the date hereof Any other modification, amendment or waiver of any provision of this AGREEMENT shall be null and void.

 

11.7                        ENTIRETY.

 

This AGREEMENT, which includes the recitals, schedules, exhibits, attachments and annexes attached hereto or incorporated by reference and made part of this AGREEMENT or subsequently incorporated in this AGREEMENT, constitutes the entire understanding and agreement between the PARTIES regarding the subject matter of this AGREEMENT, and supersedes all prior or contemporaneous agreements, oral or written, made between the PARTIES relating to such subject matter. Nothing in this AGREEMENT, express or implied, is intended to confer upon any person, other than the PARTIES hereto or their respective successors and permitted assigns, any rights, remedies, benefits, obligations or liabilities of any nature whatsoever under or by reason of this AGREEMENT.

 

11.8                        AGREEMENT PRECEDENCE.

 

For their convenience, the PARTIES may use, from time to time, their standard purchase orders, site level execution agreements, sales releases, delivery schedules, acknowledgments, invoices and other similar preprinted forms.  In the event of a conflict between this AGREEMENT and any of these documents that purport to govern the same matters set forth herein, this AGREEMENT shall prevail, except as otherwise set forth in the Section entitled MODIFICATION AND WAIVER.

 

11.9                        SEVERABILITY.

 

In the event any provision of this AGREEMENT is declared to be void, invalid or unlawful by any court or tribunal of competent jurisdiction, such provision shall be deemed severed from the remainder of this AGREEMENT and the balance shall remain in full force and effect. The PARTIES shall undertake to replace the invalid, ineffective, or unenforceable provisions with valid, effective, and enforceable provisions, which, in their commercial effect,

 

16

 

approximate as closely as possible the intentions of the PARTIES as expressed in the invalid, ineffective, or unenforceable provisions.

 

11.10                 NOTICES.

 

All notices given hereunder shall be in writing and shall be deemed to have been duly given if addressed or sent to the PARTIES at the following addresses and facsimile numbers or to such other additional address or facsimile number as any PARTY shall hereafter specify by notice to the other PARTY and the PARTIES’ receipt of such notice:

 

SELLER:
 Corium International, Inc.
 235 Constitution Dr. Inc.
 Menlo Park, CA 94025
 Attention: Vice President, Corporate Development

 

BUYER:
 Sabrina Mondelo
 8700 Mason-Montgomery Road 
 Mason, Ohio 45040
 mondelo.s@pg.com
 (513) 622-1942

 

11.11                 HEADINGS.

 

Section headings hereof reference and are for convenience only and shall not affect the interpretation hereof.

 

11.12                 COUNTERPARTS.

 

The PARTIES may execute any number of counterparts to this AGREEMENT, each of which shall be an original instrument, but all of which taken together shall constitute one and the same AGREEMENT. Signed facsimile copies or electronic copies of this AGREEMENT shall bind the PARTIES to the same extent as original documents.

 

11.13                 GOVERNING LAW, CONSTRUCTION AND LANGUAGE.

 

This AGREEMENT shall be governed and construed in accordance with the laws of the State of New York without reference to that body of laws known as conflicts of laws, whether common law or statutory.

 

The PARTIES understand the English language and are fully aware of all terms and conditions contained herein. If any translation of this AGREEMENT is made, the English language version shall always continue to govern.

 

The PARTIES agree that (i) the United Nations Convention on International Sale of Goods and/or the Sales of Goods Act (Ontario, Canada) shall have no force or effect on transactions under or relating to this AGREEMENT; (ii) no trade usage shall be used to explain

 

17

 

or supplement this AGREEMENT even if either or both PARTIES were aware or should have been aware of such trade usage; and (iii) this AGREEMENT prevails over any general terms and conditions of trade.

 

11.14                 SURVIVAL PROVISIONS.

 

Neither the expiration nor termination of this AGREEMENT shall affect such of the provisions of this AGREEMENT that expressly provide that they shall operate after any such expiration or termination or which of necessity must continue to have effect after such expiration or termination, notwithstanding that the clauses themselves do not expressly provide for this.

 

11.15                 PUBLIC DISCLOSURES.

 

Except as required by law or with BUYER’s prior written consent, SELLER shall neither (i) disclose the existence, or the terms and conditions, or the subject matter of this AGREEMENT to any party, (ii) issue press releases or any other publication regarding the existence, the terms and conditions, or the subject matter of this AGREEMENT, (iii) issue statements as to the existence of a relationship between the PARTIES, nor (iv) use BUYER’s, its parents’, its affiliates’ or subsidiaries’ corporate names or trademarks.

 

BUYER and SELLER have caused their respective duly authorized representatives to execute this AGREEMENT, acting as agent(s) as set forth herein.

 

	
Legal   Entity: The Procter & Gamble
    	
 
    
	
Manufacturing   Company
    	
 
    
	
By   (Signature):
    	
/s/   Robert D. Swift
    	
 
    
	
Printed:
    	
Robert   D. Swift
    	
 
    
	
As:
    	
Associate   Director, Purchases External Supply Organization
    	
 
    
	
Date:
    	
04   June 2010
    	
 
    
	
 
    	
 
    
	
Legal   Entity: Corium International, Inc.
    	
 
    
	
By   (Signature):
    	
/s/   Christina Dickerson
    	
 
    
	
Printed:
    	
Christina   Dickerson
    	
 
    
	
Title:
    	
VP,   Corporate Development
    	
 
    
	
Date:
    	
May 21,   2010
    	
 
    

 

 

 

18

 

Exhibit 2.1

 

Specifications

 

Specifications as of the Effective Date for Advanced Seal are attached.

 

Specifications for Professional Effects are attached hereto.

 

[*] Confidential treatment is requested for the following eleven pages.

 

*Confidential Treatment Requested.

 

 

Exhibit 3.2.4

 

Quality Agreement

 

[*] Confidential treatment is requested for the following eleven pages.

 

*Confidential Treatment Requested.

 

 

Exhibit 6.1

 

Pricing for June 1, 2010 to May 31, 2011

 

	
Feet Ordered
   (average per week)
    	
 
    	
Meters Ordered
    (average per week)
    	
 
    	
Price/foot
    (USD)
    	
 
    	
Price/meter
    (USD)
    	
 
    	
Comments
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    

 

Pricing for June 1, 2011 to M ay 31, 2012

 

	
Feet Ordered
   (average per week)
    	
 
    	
Meters Ordered
    (average per week)
    	
 
    	
Price/foot
    (USD)
    	
 
    	
Price/meter
    (USD)
    	
 
    	
Comments
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    

 

Pricing for June 1, 2011 to M ay 31, 2013

 

	
Feet Ordered
   (average per week)
    	
 
    	
Meters Ordered
    (average per week)
    	
 
    	
Price/foot
    (USD)
    	
 
    	
Price/meter
    (USD)
    	
 
    	
Comments
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    

 

The above pricing reflects the combined volumes of Advanced Seal (95588376 GCAS/Brandcode) and Pro Effects (98995705) as ordered by BUYER in accordance with the terms of this Agreement.  In the event that a third product for oral care is launched, the parties will agree to update this pricing exhibit to include the new and existing products.

 

Conversion Factor: 3.2808 Feet/Meter

 

*Confidential Treatment Requested.

 

 

Exhibit 11.3

 

Assignees Requiring Consent

 

[*]

 

*Confidential Treatment Requested.

 

 

Corium International, Inc.

235 Constitution Drive

Menlo Park, California 94025

 

RE:                          First Amendment to the Restated Supply Agreement (Contract Manufacturing for Teeth Whitening Strip Products) executed June 4, 2010 (“Agreement”) between Corium International, Inc. (“Corium”) and The Procter & Gamble Company Manufacturing Company (“P&G”)

 

This will serve as an amendment (the “First Amendment”), effective as of the date of the last signature hereto (the “First Amendment Effective Date”), to the above referenced Agreement.  Except as modified herein, all terms and conditions of the Agreement are incorporated into and made part of this Amendment as though expressly set forth herein.  Nothing herein indicates that the Parties agree to any other amendments or extensions other than this First Amendment as set forth below.

 

The Parties hereby agree as follows:

 

Exhibit 6.1 of the Agreement shall he replaced in its entirety with the new Amended Exhibit 6.1 attached hereto.

 

IN WITNESS WHEREOF, the authorized representatives of the Parties hereto have signed this agreement as of the date and year set forth below.

 

	
ACCEPTED:
    	
Very   truly yours,
    
	
 
    	
 
    
	
CORIUM INTERNATIONAL, INC.
    	
TIIE   PROCTER & GAMBLE
    
	
 
    	
 
    	
MANUFACTURING   COMPANY
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christina Dickerson
    	
 
    	
By:   
    	
/s/   James R. Mcleod, JR
    
	
Title:   
    	
VP,   Corporate Development
    	
 
    	
Title:   
    	
Purchasing   Group Manager
    
	
Date:   
    	
October 5,   2010
    	
 
    	
Date:   
    	
10/8/2010
    

 

*Confidential Treatment Requested.

 

 

Amended Exhibit 6.1

 

(Revised to include [*])

 

Pricing for June 1, 2010 to May 31, 2011

 

	
Feet Ordered
   (average per
   week)
    	
 
    	
Meters Ordered
   (average per
   week)
    	
 
    	
Price/foot
    [*]
   (USD)
    	
 
    	
Price/meter
   [*] (USD)
    	
 
    	
Price/foot
   [*]
   (USD)
    	
 
    	
Price/meter
   [*]
   (USD)
    	
 
    	
Comments
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
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[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    

 

Pricing for June 1, 2011 to May 31, 2012

 

	
Feet Ordered
   (average per
   week)
    	
 
    	
Meters Ordered
   (average per
   week)
    	
 
    	
Price/foot
   [*]
   (USD)
    	
 
    	
Price/meter
   [*]
   (USD)
    	
 
    	
Price/foot
   [*]
   (USD)
    	
 
    	
Price/meter
   [*]
   (USD)
    	
 
    	
Comments
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    

 

*Confidential Treatment Requested.

 

 

	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    

 

Pricing for June 1, 2012 to May 31, 2013

 

	
Feet Ordered
   (average per
   week)
    	
 
    	
Meters Ordered
   (average per
   week)
    	
 
    	
Price/foot
   [*]
   (USD)
    	
 
    	
Price/meter
   [*]
   (USD)
    	
 
    	
Price/foot
   [*]
   (USD)
    	
 
    	
Price/meter
   [*]
   (USD)
    	
 
    	
Comments
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
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[*]
    	
 
    	
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[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    	
[*]
    	
 
    

 

The above pricing reflects the combined volumes of [*] and [*] and [*] as ordered by BUYER in accordance with the terms of this Agreement.  The volumes of [*] ordered by BUYER will be multiplied by [*]when incorporated into the total feet ordered weekly to account for the slower run time of the [*] product.  Additionally, the maximum capacity of [*] per week will be reduced depending on the current volumes of the [*] product ordered by BUYER.  At the current estimated forecasts, it is expected that the maximum capacity will be [*] per week; however the maximum capacity could be further reduced should the volumes of [*] increase.

 

Conversion Factor: 3.2808 Feet/Meter

 

*Confidential Treatment Requested.

 

2

 

AMENDMENT

 

This sixth amendment (“AMENDMENT #6”) to the Restated Supply Agreement, dated June 1, 2010, and subsequently amended four times (as amended, the “AGREEMENT”) is entered into by and between The Procter & Gamble Manufacturing Company at One Procter & Gamble Plaza, Cincinnati, OH, US, 45202 (“BUYER”, as defined in the AGREEMENT), and Corium International, Inc. at 235 Constitution Drive, Menlo Park, CA, US, 94025 (“SELLER”, as defined in the AGREEMENT).

 

BUYER and SELLER hereby amend the AGREEMENT as follows:

 

1.                                      AMENDMENT

 

The first sentence of Section 7.1 of the AGREEMENT is deleted and hereby replaced with the following new first sentence of Section 7.1:

 

“The period of this AGREEMENT (“PERIOD”) shall begin on June l, 2010 (“EFFECTIVE DATE”) and end on August 1st, 2014, unless earlier terminated in accordance with the provisions hereof.”

 

2.                                      No Further Changes

 

Except as expressly amended by this AMENDMENT #6, the AGREEMENT will continue in full force and effect in accordance with the terms and conditions.  Capitalized terms used in this AMENDMENT #6 but not defined herein will have the meaning given in the AGREEMENT.

 

IN WITNESS WHEREOF the PARTIES hereto have entered into this AMENDMENT effective as of February 1, 2014.

 

 

	
P&G Legal Entity:
    	
The Procter & Gamble Manufacturing   Company
    	
 
    	
Seller:
    	
Corium International Inc.
    
	
 
    	
 
    	
 
    
	
By (Signature): 
    	
/s/ James R. McLeon Jr.
    	
 
    	
By (Signature):
    	
/s/ Christina Dickerson
    
	
 
    	
 
    	
 
    
	
Printed: 
    	
/s/ James R. McLeod Jr.
    	
 
    	
Printed: 
    	
/s/ Christina Dickerson
    
	
 
    	
 
    	
 
    
	
Date: 2/5/14
    	
 
    	
Date: 2/1/14

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