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Exhibit 10.34    
  

[*]    Portions of this exhibit have been redacted.  

  
 

    DISTRIBUTOR AGREEMENT    
  

        This
agreement is entered into this 15th day of May, 2002 by and between Alcide Corporation, a Delaware corporation whose offices are located at 8561 154th Ave. N.E., Redmond,
Washington, U.S.A. (hereinafter "Supplier") and Agri-Lloyd International LTD whose offices are located at Glendower Road, Leominster, Herefordshire, UK (hereinafter "Distributor"),
and supersedes all previous agreements between the parties. 

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

 1.    Definitions  

        As used herein, the term 

        1.1  "Contract
Term" shall mean that period stated on Schedule A attached hereto. 

        1.2  "Products"
shall mean Alcide® external udder care products, including UDDERgold® Germicidal Barrier Teat Dip, UDDERgold Platinum®
Barrier Teat Dip and DIPPINgold® Pre and Post Milking Teat Dip. 

        1.3  "Territory"
shall be as defined on Schedule B. 

 2.    Appointment of Distributor  

        2.1  Subject
to the terms and conditions of this Agreement, Supplier hereby appoints Distributor as exclusive distributor for the Products for the Territory. Distributor
hereby accepts said appointment and agrees to actively promote and sell the Products. [*]

        2.2  In
accepting this appointment, Distributor agrees that it and the other subsidiaries of Tangerine Holdings Limited shall not, directly or indirectly, sell or distribute
in the Territory, or develop: 

        (a)  Any
other external udder disinfectant product during the Contract Term. 

        (b)  Any
product containing acidified chlorite, chlorous acid or chlorine dioxide as its active ingredients or degradents during the Contract Term and for a period of two
(2) years thereafter. [*]

        (c)  Alcide
products sourced through other Alcide distributors unless approved in writing by Alcide. 

        2.3  Distributor
may appoint agents, dealers or sales representatives to act on Distributor's behalf for sales of the Products in the Territory, provided that any
compensation to such agents, dealers or representatives shall be solely Distributor's responsibility. 

        2.4  Subject
to the terms and conditions of this Agreement, Distributor is authorized to sell the Products purchased from Supplier in such manner, at such prices and upon
such terms as Distributor shall determine. Distributor is an independent contractor, not an agent or representative of Supplier. Distributor shall not assume or create any obligation in the name of
Supplier or make any representation, warranty or guarantee on behalf of or in the name of Supplier. 

        2.5  Labeling
of the Products shall be determined exclusively by Supplier. Distributor will have the right to review all Product labels prior to final approval by Supplier,
and Distributor's name and trademark shall be displayed on all labels for product delivered in the Territories. Distributor 

 

shall reimburse Supplier for art work related to labels making specific reference to Distributor or Sub-distributors and, upon termination of this Agreement, Distributor shall purchase
such labels from Supplier at the cost incurred by supplier. When Sub-distributor changes, Distributor shall purchase old labels from Supplier. 

        2.6  In
any of the Distributor's activities relating to the promotion and sale of the Products, Supplier's name and trademark shall always be prominently displayed in order
to protect Supplier's rights and goodwill in the same. Whenever Supplier's name and trademark are used in advertising and promotional programs, Supplier retains the right to review and approve same. 

        2.7  All
registrations, trade names, trademarks and product names under which the Products are sold shall be the property of Supplier. In the event any registrations (e.g.,
Product registrations) are taken or issued in the name of Distributor, Distributor shall, upon request, but in no event no later than upon termination of this Agreement, transfer such registrations to
Supplier or Supplier's designee and provide any documents and assistance reasonably required in connection therewith. 

        2.8  This
Agreement shall not be construed as establishing a franchise. 

        2.9  Supplier
and Distributor each represent and warrant to the other that it is authorized to enter into and perform this Agreement and that this Agreement does not and
shall not conflict with any other agreements it may have. 

 3.    Terms and Conditions of Sale  

        3.1  All
of Distributor's orders for the Products shall be subject to the terms and conditions set forth in this Section 3 and in the attached Schedule D which
provides product pricing. No additional or different terms set forth in Distributor or Supplier's purchase order, acknowledgment or other forms of correspondence (other than an amendment to this
Agreement pursuant to Section 8.1 hereof) shall govern any sales of the Products by Supplier to Distributor. 

        3.2  Supplier
shall be responsible for labeling, packing and shipping all Products ordered in a form agreed upon between Supplier and Distributor as being appropriate for the
Territory and suitable for ready sale to the end user in the Territory. All deliveries shall be Ex Works Manufacturing Plant location. 

        3.3  Schedule A
(attached) sets forth-minimum yearly commitment amounts of product to be purchased by Distributor from Supplier.  [*]

        Ninety
(90) days prior to the start of the contract year, Distributor will provide Supplier with a twelve (12) month forecast of anticipated product purchases by month. The
twelve (12) month forecast will be updated each ninety (90) days to facilitate Supplier's planning. 

        Distributor
shall place a firm stocking purchase order for a total of at least [*] to be delivered on or before  [*] and invoiced on [*]
. This particular order to be
paid for by Distributor on or before [*]. A second purchase order for  [*] shall be placed for [*] shipment.

        Monthly
purchase orders will be issued by Distributor to Supplier sixty (60) days in advance. 

        3.4  Terms
are 60 (sixty) days ex-works the Supplier's manufacturer or warehouse. Distributor shall make payments to Supplier within sixty (60) days
following invoice of products ordered by Distributor. Invoice will not be issued by Supplier until Product is manufactured and ready for shipment with proper notification of availability provided to
Distributor. Distributor agrees and understands that interest will be charged for all amounts not paid within sixty (60) days from date of invoice. The interest will be 2% per month, plus an
additional incremental rate of 1.5% per month for amounts not paid within one hundred twenty (120) days from date of shipment.  [*]

2

 

        3.5  Supplier
provides the Limited Warranty as described in Schedule C. 

        3.6  Prices
shown in Schedule D may be revised by Supplier annually on the anniversary date of this agreement following sixty (60) days prior written notice to
Distributor by Supplier. 

        3.7  Supplier
shall have Distributor named as an additional insured under Supplier's Product Liability Insurance policy at all times during the term of this Agreement 

        3.8  Upon
termination of the Agreement, Distributor shall purchase from Supplier all unused labels and product inventory that has been manufactured subject to a purchase
order issued by the Distributor. 

 4.    Promotional Activities  

        4.1  Distributor
shall undertake such advertising and promotional activity relating to Products as is deemed appropriate by Distributor to actively promote sales. Such
advertising and promotional activity shall be solely at Distributor's expense unless otherwise agreed to in writing by Supplier. All advertising and promotional materials developed by Distributor
shall be in accordance with descriptions of Products provided by Supplier and, to the best of Distributor's knowledge, shall be accurate in all material respects. Upon request, Supplier shall have the
right to review and approve all advertising and promotional materials developed by Distributor. Such approval will not be unreasonably withheld and will automatically be given if Supplier does not
respond to the request within fourteen (14) working days. 

        4.2  Distributor's
marketing plans shall be provided to Supplier annually on or before the start of each contract year. A list of major meetings, annual shows, seminars and
training programs at which Supplier's participation is desired shall be submitted ninety (90) days in advance by Distributor. 

        4.3  A
tabulation of Distributor sales by Product and Territory shall be provided by Distributor to Supplier at the end of each fiscal quarter. 

        4.4  Distributor
shall not undertake any advertising or promotional activity relating to the Products until after August 15, 2002. 

 5.    Term and Termination  

        5.1  This
Agreement may be terminated by either party, effective immediately upon notice to the other, in the event the party to which such notice is sent becomes the subject
of any bankruptcy or insolvency proceedings. This Agreement may also be terminated by Supplier effective immediately in the event Distributor is delinquent in payment of invoices, as defined by
paragraph 3.4, by more than thirty (30) days. 

        5.2  In
any case where a party claims the other party is in breach of the provisions of this Agreement (other than a failure to purchase at least the commitment amounts set
forth in Schedule A), the injured party shall give written notice of the breach. The party in breach must commence curing the breach within sixty (60) days of receiving notice thereof.
If the breach is not cured within one hundred and twenty (120) days, this Agreement may be terminated by the party claiming breach. 

        5.3  The
provisions of Sections 2.2, 2.6, and 7 and any accrued obligations shall survive termination of this Agreement. 

        5.4  No
later than six (6) months prior to expiration of this Agreement, Distributor and Supplier shall meet to discuss their intentions regarding a new or extended
agreement. 

3

 

 6.    Applicable Law.  

        This
Agreement shall be governed by and construed in accordance with the laws of the State of Washington, regardless of its or any other jurisdiction's choice of law principles. The 1980
U.N. Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. Settlement of disputes relating to this Agreement shall be resolved according to the Rules of
Arbitration of the International Chamber of Commerce. 

 7.    Confidential Information  

        (a)  Supplier
and Distributor agree, with respect to any confidential information received from the other and identified as confidential information, that: 

        (i)    the
receiving party shall use reasonable care to prevent disclosure of the confidential information to any third party without the prior written consent of the
disclosing party, and the degree of care taken by the receiving party shall be at least as great as the degree of care which the receiving party takes in protecting its own confidential information;
and 

        (ii)  receiving
party shall not use confidential information disclosed by the other party for any commercial purpose other than pursuant to this Agreement, or publish or
disclose it to third persons without the prior written consent of the disclosing party. 

        (b)  Neither
party shall have any obligation with respect to any information disclosed by the other party: 

        (i)    which
is already in the possession of the receiving party at the time of its receipt from the disclosing party; 

        (ii)  which
the receiving party lawfully receives from another person whose disclosure thereof to the receiving party does not violate any rights of the disclosing party; or 

        (iii)  which
is or becomes published or otherwise publicly available through no act or omission of the receiving party. 

        (c)  Upon
expiration or termination of this Agreement, Distributor and Supplier shall each, upon the written request of the other, return or destroy all materials, copies
thereof and extracts therefrom which include any information designated as confidential by the other pursuant to Section 7.1. Each may, however, retain for legal archival purposes only, one
(1) copy of all such material. 

        (d)  The
provisions of this Section 7 and Section 2.2 (b) shall survive termination of this Agreement and remain in full force and effect for a period of
three (3) years following termination as to any item of confidential information. 

 8.    Miscellaneous  

        8.1  This
Agreement constitutes the entire agreement between Distributor and Supplier and may be amended only by a written document signed by both parties hereto. 

        8.2  All
notices, requests or other communications under this Agreement shall be given in the English language and will be deemed properly given if in writing and delivered
in person, sent via 

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international courier service or by confirmed facsimile transmission to the intended recipient at the address specified below, or to such other address as a party may specify in writing: 

	 
	 	 

	If to Supplier:	 	Alcide Corporation
	

 	
 	

Attn.: John Richards

8561 154th Avenue N.E.

Redmond, WA 98052

U.S.A.
	

If to Distributor:	
 	

Agri-Lloyd International LTD
	

 	
 	

Attn.: David Haythornthwaite

Glendower Road, Leominster

Herefordshire HR6 ORL

UK

        8.3  The
failure by either party to enforce any term or provision of this Agreement shall not constitute a waiver of the same. 

        8.4  This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original and one and the same document. 

        8.5  The
rights of Distributor hereunder shall not be assigned or transferred, either voluntarily or by operation of law, without the prior written consent of Supplier, nor
shall the duties of Distributor hereunder be delegated in whole or in part. Any such assignment, transfer or delegation shall be of no force or effect. Any change in control of Distributor shall be
deemed an impermissible assignment and entitle Supplier to terminate this Agreement. This Agreement shall be binding upon and inure to the benefit of Supplier, its successors and assigns. 

        8.6  If
any provision of this Agreement is or becomes invalid, illegal or unenforceable, the remaining provisions shall remain in full force and effect, and for the invalid,
illegal or unenforceable provision shall be substituted a valid, legal and enforceable provision which shall be as similar as possible in economic and business objectives as intended by the parties. 

        8.7  Distributor
shall comply with all applicable laws and regulations in performing under this Agreement, including the U.S. Foreign Corrupt Practices Act. 

        Neither
party shall be responsible for non-performance or delay in performance arising from force majeure except the term of this Agreement shall not be extended as a
consequence thereof. Force Majeure shall be deemed to include, but not be limited to, those circumstances, if any, whereby Distributor shall be prevented from meeting minimum purchase requirements set
forth in Schedule A as a consequence of acts and omissions of Supplier. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. 

	 
	 	 
	 	 
	 	 

	ALCIDE CORPORATION

("Supplier")	 	Agri-Lloyd International LTD

(Distributor)
	

By:	
 	

/s/ James L. Winter
	
 	

By:	
 	

/s/ David Haythornthwaite

	

Its:	
 	

Corporate Vice President
	
 	

Its:	
 	

Chairman

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SCHEDULE A    
  

	 
	 	 

	 	 	(1) Contract Term
	

 	
 	

(2) Commitments to purchase product

	(1)
	The
Contract Term shall be a three-year period commencing June 1, 2002, and ending May 31, 2005.

	(2)
	The
Contract can be automatically renewed for a period of two-years until May 31, 2007 if the Annual Purchase volume as stated in Schedule A for Year 3 has
been met by Distributor.

	(3)
	Product
to be purchased by Distributor from Supplier for the Territory during the periods after commencement of the Contract Term are as follows: 

	UK
 
	 	Annual Purchase

	Contract Year	 	 
	 	Year 1	 	[*]
	 	Year 2	 	[*]
	 	Year 3	 	[*]
	 	Year 4	 	[*]
	 	Year 5	 	[*]

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SCHEDULE B    
  

Territory 

UK 

Ireland 

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SCHEDULE C
  
    Limited Warranty    
  

        Alcide Corporation warrants to all purchasers of this Product that it has been manufactured in accordance with U.S. regulatory requirements, is free of defects
and is as described in all labeling affixed hereto. Alcide's sole obligation under this warranty and buyer's sole remedy for any defect or failure to meet such requirements or labeling shall be
limited to replacement without cost (except all costs for shipping and handling which shall be Distributor's responsibility) of any quantity of the Product sold. 

        THE
WARRANTY PROVIDED HEREIN AND THE OBLIGATIONS AND LIABILITIES OF ALCIDE CORPORATION HEREUNDER ARE EXCLUSIVE AND IN LIEU OF, AND BUYER HEREBY WAIVES ALL OTHER REMEDIES, WARRANTIES,
GUARANTIES OR LIABILITIES, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY AND ANY
REMEDIES OR LIABILITIES FOR LOST PROFITS OR CONSEQUENTIAL DAMAGES). BUYER ACKNOWLEDGES THAT HE IS NOT RELYING ON THE JUDGMENT OF ALCIDE CORPORATION TO SELECT OR FURNISH COMPONENTS OR MATERIALS
SUITABLE FOR ANY PARTICULAR PURPOSE AND THAT ALCIDE CORPORATION MAKES NO WARRANTIES OTHER THAN ON THE FACE HEREOF. 

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SCHEDULE D    
  

	1.
	Standard
pricing—[*]

	PRODUCT
 
	 	SIZE

of Units
	 	PRICE $/Gallon

	UDDERgold	 	[*]	 	[*]
	UDDERgold Platinum	 	[*]	 	[*]
	DIPPINgold	 	[*]	 	[*]

	2.
	[*]

	3.
	[*]

9

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Exhibit 10.34

DISTRIBUTOR AGREEMENT

SCHEDULE A

SCHEDULE B

SCHEDULE C Limited Warranty

SCHEDULE DQuickLinks
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Exhibit 10.35    
  

[*]    Portions of this exhibit have been redacted.  

  
 

    LICENSE AGREEMENT    
  

        This LICENSE AGREEMENT (this "Agreement"), dated as of April 26, 2002, is entered into by and between Alcide Corporation, a Delaware corporation
("Alcide"), and IBA, Inc., a Massachusetts corporation ("IBA"). 

 
 

RECITALS    
  

        A.    Alcide has certain valuable patent rights, trademark rights, technical data and information relating to products intended for use in the
prevention of mastitis in dairy cattle. 

        B.    IBA
has experience in manufacturing and selling products to the dairy industry and desires a license to Alcide's products, upon the terms set forth herein. 

 
 

AGREEMENT    
  

        NOW, THEREFORE, the parties agree as follows: 

1.    DEFINITIONS  

        As
used herein: 

        1.1  "Contract
Term" shall be a five (5) year period starting on the latest date on which this Agreement is signed by both parties. 

        1.2  "Product"
shall refer to Alcide® external udder care products, listed on Exhibit A, including, without limitation, UDDERgold® Plus
Germicidal Barrier Teat Dip, 4XLA® Pre- and Post-Milking Teat Dip, Pre-Gold® Germicidal Pre-Milking Teat Dip,
UDDERgold® 5-Star Germicidal Barrier Teat Dip and LD® Udder Wash. Product shall include any refinements or improvements to the existing udder care product line.
Product shall also include UDDERgold® if and when that product is reintroduced in the U.S. within the Contract Term. 

        1.3  "Territory"
shall be defined as the 48 contiguous states of the United States of America and Mexico. 

        1.4  "Affiliate"
shall mean any company or other business entity controlled by, controlling or under common control with a party, control being presumed if there is direct or
indirect ownership of at least fifty percent (50%) (or, if less, the maximum permitted by applicable law) of the voting stock, equity or income interest in the other corporation or business entity. 

        "Patent
Rights" shall mean the rights of Alcide in any patent applications filed on the technology within the Territory, including, without limitation, all the U.S. and Mexican patents
of Alcide set forth in Exhibit A together with any divisions, continuations, continuations-in-part, and any patents or reissued patents therein. 

        "Trademark
Rights" shall mean all the Alcide trademarks registered or otherwise in the U.S. and Mexico for the Product. 

        1.7  "Technical
Information" shall mean all trade secrets, technical reports and proprietary data provided by Alcide, including, without limitation, formulations, test
results and know-how for manufacturing. 

2.    GRANT OF RIGHTS  

        2.1  Subject
to the terms of this Agreement, Alcide hereby grants to IBA a non-exclusive license under the Patent Rights and Technical Information to make, have
made, use, sell and 

 

import the Product in the Territory for the Contract Term. IBA shall not use the Patent Rights, Trademark Rights or Technical Information for any other purpose. IBA shall not manufacture the Product
for a third party. IBA shall have no right to make improvements or continuations or continuations-in-part. 

        2.2  IBA
may not sublicense its rights granted pursuant to Paragraph 2.1 without prior written permission from Alcide in its sole discretion; provided, however, that
IBA may sublicense its rights with respect to selling the Product in the Territory as provided in Paragraph 2.4 and may contract for 3rd party manufacturing of Product as provided in
Paragraph 2.5. 

        2.3  IBA
shall have a non-exclusive license under the Trademark Rights to use the Trademark Rights for the purposes of manufacturing, packaging, marketing and
distributing the Product. IBA shall not register or use any mark that is confusingly similar to the marks listed on Exhibit D (the "Marks"). IBA shall not challenge or attempt to prevent the
use or registration of Alcide's Marks. IBA shall use the Marks only in the exact form provided to it by Alcide. In any of IBA's activities relating to the labeling, promotion and sale of the Product,
the Alcide Marks shall always be prominently displayed in order to protect Alcide's rights and goodwill in the same. Whenever Alcide's Marks are used in advertising and promotional programs, Alcide
retains the right to review and approve same. All goodwill in and to the Marks shall inure to the benefit of Alcide. IBA shall include the statement "[Product Name] and Alcide
are registered trademarks of Alcide Corporation" on all promotional materials and all packaging. 

        IBA
may appoint agents, dealers or sales representatives to act on IBA's behalf for sales of the Product in the Territory, provided that any compensation, benefits and taxes related to
such agents, dealers or representatives shall be solely IBA's responsibility, and IBA shall remain responsible for any agents', dealer's or sales representative's performance and adherence to the
terms of this Agreement. 

        2.5  IBA
may, at its option, arrange to have Product manufactured by one or more third party manufacturers provided, however, that each such third party manufacturer must as
a condition of
manufacturing Product for IBA agree to the same manufacturing, non-compete and confidentiality provisions as agreed by IBA including, but not limited to those expressed in paragraphs, 2.1,
5.5 and 7. 

        2.5b IBA
covenants that it will maintain this Agreement for the five year Contract Term and will not manufacture or market an acidified sodium chlorite teat dip product
other than the Product during the Contract Term. IBA also covenants that it will advise Alcide one year in advance of the set termination date of this Agreement of its intention to market an acidified
sodium chlorite teat dip product. 

        2.6  Subject
to the terms and conditions of this Agreement, IBA is authorized to sell the Product in such manner, at such prices and upon such terms as IBA shall determine.
IBA is an independent contractor, not an agent or employee of Alcide. 

        2.7  Labeling
of the Product shall be mutually determined in advance by Alcide and IBA. Any changes to Product labels shall be mutually agreed upon by Alcide and IBA in
advance. 

        Any
approvals required under this Agreement shall not be unreasonably withheld by either Alcide or IBA. 

        2.8  All
trade names, trademarks and product names under which the Product is sold shall be the property of Alcide. 

        2.9  As
part of the transfer of manufacturing Technical Information, Alcide will provide three technical consulting visits within the first twelve (12) months of the
contract at Alcide's expense to 

2

 

each manufacturing site or sites of IBA's choosing. Any travel expenses for further visits requested by IBA will be at IBA's expense. 

        2.10 Alcide
reserves the right to review raw material specifications and batch records on the first six (6) batches of Product produced under this Agreement during
initial start up at each new manufacturing site and on an annual basis from then on for the Contract Term. Alcide further reserves the right to run quality tests in a laboratory of its choosing on the
first six (6) batches of finished Product produced under this Agreement during initial start up at each new manufacturing site and on an annual basis from then on for the Contract Term to
verify the Product meets Alcide's specifications. Any batch produced by IBA that does not meet Alcide's specifications as dictated in the Technical Information will be disposed of at IBA's expense and
shall not be sold or otherwise distributed. 

        2.11 It
is IBA's responsibility to adhere to relevant local regulations regarding GMPs, product quality and reporting requirements. 

3.    LICENSING FEES—TERMS AND CONDITIONS  

        3.1  In
consideration of the license granted herein, IBA shall pay Alcide a licensing fee (collectively, "Licensing Fees") for each gallon manufactured by IBA or for each
gallon purchased by IBA from its contract manufacturers as set forth in Exhibit B, regardless of whether such gallon is actually sold. Fees for additional products manufactured under this
Agreement will be set at the time the new Product's formulation is provided to IBA. All Licensing Fees shall be subject to the terms and conditions set forth in this Paragraph 3 and in the
attached Exhibit B. No additional or different terms set forth in IBA's or Alcide's purchase order, acknowledgment or other forms or correspondence (other than an amendment to this Agreement
pursuant to Paragraph 9.2 hereof) shall govern any activities related to the manufacturing of the Product by IBA or its designate and/or sales of the Product by Alcide to IBA. 

        3.2  Licensing
Fees shown in Exhibit B may be revised during the term of this Agreement following sixty (60) days prior written notice to IBA from Alcide. 

        Any
increase or decrease in licensing fees will be commensurate with a price increase or decrease to the other national distributor (or regional equivalent) in the Territory. The amount
of increase or decrease will be equivalent to the price increase or decrease to the other national distributor (or regional equivalent) in the Territory, less any portion of the increase or decrease
that is based directly on an increase or decrease in the cost of raw materials. 

        3.3  Licensing
Fees shall be paid to Alcide on the tenth (10th) day of the month following IBA's pickup and/or purchase of Product from their contract
manufacturer. With each payment, IBA shall provide Alcide with a written report of (a) the number of units purchased by Product during each month, and (b) a calculation of the Licensing
Fees due thereon. All Licensing Fees not received by Alcide by the due date as stated in Paragraph 3.3 will incur interest at the rate of twelve percent (12%) per year. 

        3.4  IBA
shall keep, or cause to be kept, accurate books and records in sufficient detail to verify the calculation of license fees and the reports given hereunder and shall
retain such books and records at its principal place of business for at least five (5) years after the end of the fiscal year to which they pertain. Alcide shall have the right, at its expense
and not more frequently than once per calendar year, to have its accountants and/or auditors examine, during normal business hours, the books and records of IBA and its Affiliates relating to the
calculation of license fees and reports and given hereunder for any period during which IBA is to keep the books and records. If any audit reveals underpayment greater than five percent (5%), IBA
shall pay the underpayment plus interest in the rate of twelve percent (12%) per year, from the date accrued to 

3

 

the date of payment, and shall reimburse Alcide for costs of the audit. Further, Alcide shall be permitted to do another audit within the next twelve (12) month period. 

        3.5  Alcide
and IBA have agreed to minimum annual commitment amounts of gallons purchased by IBA from their contract manufacturers (as set forth in Exhibit C attached)
during the Contract Term. Alcide and IBA shall meet annually at least (60) days prior to the anniversary date of the Agreement to review the minimum annual commitments and the commitments can
be amended by mutual agreement of Alcide and IBA. If the minimum annual commitment for the coming year is amended, then the commitments for future years will be adjusted to an amount not greater than
five (5) percent growth per annum based on the amended minimum annual commitment. Notwithstanding the foregoing, with respect to any new Products or improvement or refinements provided to IBA
after commencement of the Contract Term, Alcide and IBA shall mutually agree to the Licensing Fees and annual minimum commitments for such products at the time such products, improvements or
refinements are initially provided to IBA. Thereafter, the commitments shall be reviewed annually at the time frame set forth in the second sentence of this Paragraph 3.5. 

        The
annual commitment amounts listed in Exhibit C assume that Alcide will distribute through one other national distributor (or regional equivalents) throughout the Territory. The
Alcide selling prices and terms of sale including incentives and rebates shall not be such that IBA dealers or distributors (as the case may be) are at a competitive disadvantage in the local
marketplace. 

        As
long as IBA attains the annual commitments listed in Exhibit C, Alcide shall not appoint additional distributors other than described above in Paragraph 3.5 for any
portion of the Territory. In no event will Alcide add more than one additional national distributor (or regional equivalents). 

        3.6  IBA
will purchase all Alcide's Product labeled with IBA as the designated distributor [*]. IBA
will also purchase Aldcide's IBA label inventory [*]. 

        3.7  Alcide
warrants that Alcide is authorized to enter into this Agreement and to grant to IBA the rights provided for in Paragraph 2.1. Alcide also warrants that
patents and trademarks relating to the Product are owned by Alcide and that the Product is the result of original research of Alcide. Alcide also warrants that its product formulas are fit for the
purposes designated on its labels. 

        3.8  IBA
warrants that all advertising and promotional materials developed by IBA shall be in accordance with descriptions of Product provided by Alcide and, to the best of
IBA's knowledge, shall be accurate in all material respects. IBA warrants that IBA is authorized to enter into this Agreement and the same does not and shall not infringe upon any other agreements it
may have. 

        3.9  IBA
shall indemnify, defend and hold harmless Alcide, its officers, directors, employees, agents, consultants and contractors (the "Indemnified Parties") successors and
assigns from and against any claim, action (including regulatory action by relevant authorities), liability, damage, loss, cost or expense (including, without limitation, reasonable attorneys' fees)
(collectively, "Losses") arising from or related to the exercise of the license granted herein, including the testing, manufacturing and/or sale of Product, by IBA and its Affiliates or the breach of
any obligation of IBA under this Agreement. Alcide shall promptly notify IBA of any such claim or action, allow IBA to control the defense of such claim or action and render all reasonable assistance
to IBA in connection with defending such claim or action; provided, however, that IBA shall not enter into any settlement agreement that requires an admission of wrongdoing or fault by Alcide without
Alcide's prior written consent. Notwithstanding the foregoing, Alcide shall have the right to participate with its own counsel, at its expense. Provided that the Product has been manufactured, tested
and distributed by IBA and its Affiliates in accordance with this Agreement, 

4

 

Alcide shall indemnify and hold harmless IBA and IBA's officers, directors, employees, agents, dealers and sales representatives against any claims by third parties which may arise due to Product
defects or defects in manufacturing instructions as provided by Alcide or which may arise due to any other breach by Alcide of its warranties set for the in Paragraphs 3.5 and 3.7 hereof. IBA shall
give reasonable notice of any claim, threatened claim or litigation which in any way relates to the exercise of the license granted under this Agreement. 

        3.10 IBA
shall secure and maintain product liability insurance in the amount of $2 million per Product with a $10 million umbrella with respect to the Product.
Upon request, IBA shall provide Alcide with evidence of such insurance coverage. IBA will issue Alcide a Certificate of Insurance listing Alcide as an additional insured on IBA's liability insurance
policy and such Certificate of Insurance shall be in force during the entire Contract Term. 

        3.11 EXCEPT
FOR THE WARRANTIES SET FORTH IN PARAGRAPHS 3.5 and 3.7, ALCIDE MAKES NO OTHER REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE PATENT RIGHTS, TRADEMARK RIGHTS
AND TECHNICAL INFORMATION AND EXPRESSLY DISCLAIMS ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
PATENTABILITY AND NONINFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF OTHER PARTIES. 

        3.12 IBA
is solely liable for implementing and solely responsible for all costs associated with any recall from the field of Product produced under this Agreement, provided
that Alcide bares no fault in the reason for the recall. In the event Alcide does bare fault, Alcide is responsible for the cost of recall or if the reason for the recall is the fault of both Alcide
and IBA, then Alcide will be responsible for a fair share of the cost of recall. 

        3.13 IBA
shall secure and maintain, in the name of Alcide, any and all registrations, permits, licenses, approvals, and other governmental actions required to manufacture,
import, handle, market, sell,
demonstrate, use and distribute the Product in the Territory, provide to Alcide quarterly progress reports on any such action, and provide to Alcide copies of all registrations, permits, licenses,
approvals, certificates, correspondence and other documentation related to any such action. Upon termination of this Agreement, IBA shall transfer to Alcide any and all such licenses, permits and
registrations within thirty (30) days of contract termination. 

        3.14 IBA
shall keep a log of and customer complaints regarding the Product and shall promptly notify Alcide in writing of each complaint that IBA may receive or become aware
of concerning the Product. 

4.    PROMOTIONAL ACTIVITIES  

        4.1  Alcide
shall regularly advise IBA of any information concerning Product availability and formulation. 

        4.2  IBA
shall undertake such advertising and promotional activity relating to Product as is deemed appropriate by IBA and Alcide to actively promote sales. 

        4.3  IBA's
marketing plan shall be provided to Alcide annually at the anniversary date of this Agreement. Alcide shall have the right to comment on and approve IBA's
marketing plan. A list of major meetings, annual shows, seminars and training programs at which Alcide's participation is desired shall be submitted ninety (90) days in advance of the
anniversary date by IBA. 

        4.4  A
tabulation of IBA sales by Product and IBA Sales Regions shall be provided by IBA to Alcide within thirty (30) days of the end of each fiscal year. 

5

 

        4.5  Alcide
shall be permitted to insert up to eight (8) pages in the aggregate of advertising or promotional articles relating to Product in Dairy World magazine for
each year of the Contract Term at no cost to Alcide. Such advertising or promotional material shall be prepared by IBA based on Technical Information provided by Alcide and approved by Alcide in
advance. 

        4.6  Alcide
shall have access to IBA's dealers through participation at each of the IBA's twice a year regional meetings. 

        4.7  Alcide
shall have access to each of IBA's Area Sales Managers and shall be afforded the opportunity to discuss Product strategy, new products and promotional ideas with
Area Sales Managers in a group meeting at least once during each year of the Agreement. 

5.    TERM AND TERMINATION  

        5.1  One
hundred and eighty (180) days prior to expiration of this Agreement, IBA and Alcide shall meet to determine their intentions regarding a new or extended
agreement. 

        5.2  Either
Party may terminate this Agreement effective immediately upon notice to the other, in the event that the party to which such notice is sent becomes the subject of
any bankruptcy or insolvency proceedings. Alcide may also terminate this Agreement with thirty (30) days notice as defined in Paragraph 9.3 in the event IBA is delinquent in payment of
invoices, as defined by Paragraph 3.3, by more than thirty (30) days but not without notice and a ten (10) day period to remedy or if Alcide repeatedly must require the
destruction of batches of the Product pursuant to Paragraph 2.10. 

        5.3  Either
Party may terminate this Agreement in the event there is a material breach of the contract by the other party and such breach is not cured within sixty
(60) days of the date of the notice of breach. 

        5.4  IBA
shall have a period of six (6) months following termination of this Agreement to sell or dispose of any inventory of Product (other than that which is
required to be destroyed pursuant to Paragraph 2.10) remaining at the date of termination; provided, however, that, Licensing Fees shall continue to be due in accordance with
Paragraph 3. 

        5.5  Upon
termination of this Agreement, IBA shall (a) cause all materials containing any Technical Information to be promptly returned to Alcide, (b) at
Alcide's election, assign to Alcide rights in any regulatory applications or approvals (e.g., investigational new drug applications) (to the extent assignable) requested by Alcide and
(c) during the nine (9) months following termination, provide to Alcide such information and data that exists with respect to Product, performance, quality and numerical sales activity
by region. 

        5.6  The
rights and obligations of Paragraphs 2.8, 3.3, 3.4, 3.7, 3.8, 3.9, 3.11, 3.13, 5.4, 5.5, 6, 7, 8 and 9 and any accrued obligations shall survive termination or
expiration of this Agreement. All other rights and obligations shall not survive termination or expiration. 

6.    ALCIDE PATENTS, TRADEMARKS AND TECHNICAL INFORMATION  

        Each
party shall reasonably notify the other party in writing of any alleged or threatened infringement of a patent or trademark included in the Patent/Trademark Rights. Alcide will have
the sole right and discretion to bring and maintain actions against any infringer in, to or under the Patent Rights, Trademark Rights or Technical Information in the Field and Territory that is or
could be adversely impacting its rights hereunder. IBA agrees, without charge, to render such reasonable assistance, execute any documents and do such other acts as may be reasonably necessary in such
legal action as Alcide may reasonably request. 

6

 

7.    CONFIDENTIAL INFORMATION  

        7.1  "Confidential
Information" means confidential information of a party, and marked confidential if disclosed in writing or if orally disclosed, identified as confidential
information at the time of disclosure and confirmed in writing within ten (10) days after disclosure, and shall include without limitation the Patents and the Technical Information. Alcide and
IBA agree, with respect to any confidential information received from the other and identified as Confidential Information, that: 

        (a)  the
receiving party shall prevent disclosure in any manner of the Confidential Information to any third party without prior written consent of the disclosing party, and
the degree of care taken by the receiving party shall be at least as great as the degree of care which the receiving party takes in protecting its own Confidential Information of like kind and
importance, but in no event less than a reasonable degree of care; and 

        (b)  The
receiving party shall not use Confidential Information disclosed by the other party for any commercial purpose other than pursuant to this Agreement without the
prior written consent of the disclosing party; and 

        (c)  IBA
shall only disclose the Confidential Information to those of its employees who have a need to know in order to perform their job responsibilities. 

        7.2  Neither
party shall have any obligation with respect to any information disclosed by the other party: 

        (a)  which
is already in the possession of the receiving party at the time of its receipt from the disclosing party; 

        (b)  which
the receiving party lawfully receives from another person whose disclosure thereof to the receiving party does not violate any rights of the disclosing party; 

        (c)  which
is or becomes published or otherwise publicly available through no act or omission of the receiving party. 

        7.3  Neither
party shall have any obligation to keep Confidential Information confidential if requested by a governmental or court order and the disclosing party is given a
reasonable opportunity to prevent such disclosure or obtain a protective order. 

        7.4  Upon
termination of this Agreement, as provided for in Paragraph 5, IBA and Alcide shall each, upon the written request of the other, return or destroy all
materials, copies thereof and extracts therefrom which include any information designated as confidential by the other pursuant to Paragraph 7.1. Each may, however, retain for legal archival
purposes only, one (1) copy of all such material. 

        7.5  The
provisions of this Paragraph 7 shall survive termination of this Agreement indefinitely. 

	8.
	LIMITATION OF LIABILITY. IN NO EVENT SHALL ALCIDE'S LIABILITY UNDER THIS AGREEMENT EXCEED THE AMOUNTS PAID BY IBA AS LICENSING FEES AND
THE MANUFACTURING COSTS OF PRODUCT UNDER THIS AGREEMENT. EXCEPT FOR IBA'S AND ALCIDE'S INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE FOR ANY INCIDENTAL,
CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING WITHOUT LIMITATION REASONABLE ATTORNEYS' FEES), EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

7

 

9.    MISCELLANEOUS  

        9.1  IBA
may not assign or delegate in whole or in part this Agreement or any right or obligation arising hereunder without the prior written consent of Alcide, subject to
Paragraph 2.4. Any assignment or delegation that is not exempted and that is attempted without such consent shall be of no force or effect. This Agreement shall be binding on and inure to the
benefit of the successors and permitted assigns of the parties. 

        9.2  This
Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof and supersedes and cancels all prior
understandings, promises and agreements. No modification or amendment hereof shall be valid or binding on the parties unless made in writing and duly executed by the parties. 

        9.3  Any
notice or any other communication required or permitted to be given to a party pursuant hereto shall be sufficiently given if delivered personally or by facsimile or
express courier service (expenses prepaid) to the address set forth below: 

	 
	 	 

	Alcide:	 	Alcide Corporation.

8561 154th Avenue N.E.

Redmond, WA 98052

Attn: President

FAX: (425) 861-0173
	

IBA:	
 	

IBA, Inc.

27 Providence Road

Millbury, MA 01527

Attn: President

FAX: 508/865-0720

or
to such other address as the party shall designate by written notice given to the other party. All notices, information, reports and other communications in connection with this Agreement shall be
in English. 

        9.4  If
any provision of this Agreement shall be held to any extent invalid or unenforceable, such provision shall be deemed amended to conform to applicable laws and to
accomplish the intentions of the parties. The headings in this Agreement are for convenience only and shall not be used in the interpretation of this Agreement. 

        9.5  No
waivers of any right under this Agreement shall be deemed effective unless contained in a writing signed by the party charged with such waiver, and no waiver of any
right arising from any breach or failure to perform shall be deemed to be a waiver of any future right or of any other right arising under this Agreement. 

        9.6  This
Agreement may be executed in one (1) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement may be executed by facsimile, which shall be deemed an original. 

        9.7  This
Agreement has been submitted to the scrutiny of both parties and their counsel and shall be given a fair and reasonable interpretation in accordance with the words
hereof, without consideration or weight being given to its being drafted by or for one of the parties. 

        9.8  In
the performance of this Agreement, each party shall comply with all laws, regulations, rules, orders and other requirements, now or hereafter in effect, of
governmental authorities having jurisdiction. 

8

 

        9.9  The
parties are and shall be independent contractors. The relationship between the parties created by this Agreement shall not constitute a partnership, joint venture,
employment or agency. Neither party shall have the authority to make any statements, representations or commitments of any kind, or to take any action, that shall be binding on the other party. 

        9.10 This
Agreement shall be governed by and construed in accordance with the laws of the State of Washington (without application of its choice of law provisions). 

        9.11 If
at any time during the term of this Agreement any dispute, difference, or disagreement shall arise upon or in respect of the Agreement, and the meaning and
construction hereof, every such dispute, difference, and disagreement shall be referred to a single arbiter agreed upon by the parties, or if no single arbiter can be agreed upon, an arbiter or
arbiters shall be selected in accordance with the rules of the American Arbitration Association and such dispute, difference, or disagreement shall be settled by arbitration in accordance with the
then prevailing commercial rules of the American Arbitration Association, and judgment upon the award rendered by the arbiter may be entered in any court having jurisdiction thereof. The arbitration
award shall be final and binding upon the Parties. In the event an arbitration, suit or action is brought by any party under this Agreement to enforce any of its terms, or in any appeal therefrom, it
is agreed that the prevailing party shall be entitled to reasonable attorneys' fees to be fixed by the arbitrator, trial court, and/or appellate court. 

        IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. 

	 
	 	 
	 	 

	 	 	ALCIDE CORPORATION
	

 	
 	

By:	
 	

/s/ James L. Winter

	 	 	 	 	Corporate Vice President

	

 	
 	
IBA, INC.
	

 	
 	

By:	
 	

/s/ Daniel J. Belsito

	

 	
 	

Its:	
 	

President

9

 
 
 

EXHIBIT A
  
    PATENT RIGHTS    
  

Issued Patents  

	Territory
 
	 	No.
	 	Title

	United States	 	Re. 36,064	 	Disinfection Method and Composition Therefor
	United States	 	4,891,216	 	Disinfecting Compositions and Methods Therefor
	United States	 	4,986,990	 	Disinfecting Method and Composition Therefor
	Mexico	 	187,595	 	Disinfecting Compositions and Methods Therefor
	Mexico	 	171,177	 	Disinfecting Compositions and Methods Therefor
	Mexico	 	161,768	 	Disinfecting Method and Composition Therefor

10

 
 
 

EXHIBIT B
  
    LICENSING FEES    
  

	 	 	[*]
	UDDERgold Plus	 	[*]
	4XLA	 	[*]
	Pre-Gold	 	[*]
	UDDERgold 5 Star	 	[*]
	LD	 	[*]
	UDDERgold	 	[*]

11

 
 
 

EXHIBIT C
  
    ANNUAL COMMITMENTS    
  

        Minimum annual amounts of Product used to calculate License Fees: 

	Year 1 (6/1/2002 to 5/31/2003)	 	[*]
	Year 2 (6/1/2003 to 5/31/2004)	 	[*]
	Year 3 (6/1/2004 to 5/31/2005)	 	[*]
	Year 4 (6/1/2005 to 5/31/2006)	 	[*]
	Year 5 (6/1/2006 to 5/31/6007)	 	[*]

12

 
 
 

EXHIBIT D
  
    ALCIDE MARKS    
  

        UDDERgold® 

        UDDERgold®
Plus 

        4XLA® 

        Pre-Gold®

        UDDERgold®
5 Star 

        LD®

13

QuickLinks

Exhibit 10.35

LICENSE AGREEMENT

RECITALS

AGREEMENT

EXHIBIT A PATENT RIGHTS

EXHIBIT B LICENSING FEES

EXHIBIT C ANNUAL COMMITMENTS

EXHIBIT D ALCIDE MARKS

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