Development Agreement
| Date | 30 September 2019 |
| Parties | Howmedica Ostenonics Corp. ("Stryker"), Conformis, Inc. ("Conformis"), Stryker and Conformis (“Parties” and individually as a “Party.”) |
| Section | Commercial Contracts |
Execution Version
Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) would likely cause
competitive harm to the Company, if publicly disclosed. Double asterisks denote omissions.
DEVELOPMENT AGREEMENT
This Development Agreement (“this Agreement”) is entered into and effective as of September 30, 2019 (“Effective
Date”) by and between Howmedica Osteonics Corp., a New Jersey corporation, also known as Stryker Orthopaedics
(“Stryker”), and Conformis, Inc., a Delaware corporation having a principal place of business located at 600 Technology Park
Drive, Billerica, MA 01821 (“Conformis”). Stryker and Conformis are collectively referred to herein as the “Parties” and
individually as a “Party.”
WHEREAS, the Parties are concurrently entering into an asset purchase agreement for Stryker’s purchase of certain
Conformis assets concerning Patient-Specific Instrumentation (“Asset Purchase Agreement”), and a License Agreement, a
Distribution Agreement and a Quality Agreement, as defined in and attached to the Asset Purchase Agreement (collectively, such
agreements are referred to herein as the “Other Agreements”).
WHEREAS, Stryker and its Affiliates have developed and commercialized an Off-The-Shelf Knee Implant offered under
the trademark Triathlon.
WHEREAS, Conformis currently offers Patient-Specific Instrumentation for use with its Patient-Specific Implants,
including partial and total knee and hip arthroplasty.
WHEREAS, Stryker desires that Conformis develop, in accordance with the R&D Program, certain Patient-Specific
Instrumentation to be used with the current version of the Off-The-Shelf Knee Implant offered under the trademark Triathlon (such
Patient-Specific Instrumentation as so developed, the “KIB Product”).
THEREFORE, in consideration of the mutual representations, warranties and covenants herein and in the Other
Agreements constituting good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties
hereby agree as follows:
ARTICLE I
DEFINITIONS
1.1 Definitions.For purposes of this Agreement, the following terms shall have the following meanings, and to the extent
not defined in this section or otherwise in this Agreement, a term shall have the meaning ascribed to it in any of the Other
Agreements:
Source: CONFORMIS INC, 10-Q, 11/1/2019
“Acceptance” and “Accept” have the meaning set forth in Article 3.4 of this Agreement.
“Acceptance Criteria” has the meaning set forth in the R&D Work Plan.
“Acceptance Notification Period” has the meaning set forth in Article 3.3 of this Agreement.
"Affiliate" has the meaning set forth in the Asset Purchase Agreement.
"Agents" means Third Parties who are acting under the direction or control of a Party.
"Applicable Laws" means all applicable federal, state, local and foreign laws, ordinances, rules, regulations, orders,
writs, injunctions and decrees of any kind.
“Asset Purchase Agreement”has the meaning set forth in the recitals.
“Change of Control” has the meaning set forth in the Asset Purchase Agreement.
"Claims" has the meaning set forth in Article 7.3(a) of this Agreement.
"Confidential Information" has the meaning set forth in the Asset Purchase Agreement.
"Conformis Background IP" means any Invention, and all Intellectual Property rights underlying such Invention, that is,
as of the Effective Date, owned or licensable by Conformis without causing a breach of, or incurring any obligation to, a third
party, in each case to the extent necessary or reasonably useful to design, develop, manufacture, sell or otherwise exploit the KIB
Product, and for the avoidance of doubt, excluding the Purchased Assets, Conformis Foreground IP, Stryker Background IP,
Improved Stryker Background IP and Improved Conformis Background IP.
2
Source: CONFORMIS INC, 10-Q, 11/1/2019
“Conformis Foreground IP” means any Invention first developed by Conformis after the Closing Date other than in the
performance of the R&D Program, and all Intellectual Property rights underlying such Invention (for the avoidance of doubt,
excluding any Intellectual Property rights subsisting prior to the Closing Date or generated in the performance of the R&D
Program). For the avoidance of doubt, Conformis Foreground IP shall not include any Inventions using Stryker Confidential
Information (which shall not include the Purchased Assets for the purposes of the definition of Conformis Foreground IP) or
Stryker Background IP.
“Conformis Indemnified Parties” has the meaning set forth in Article 7.3(b) of this Agreement.
“Conformis-Prosecuted Joint IP Rights” has the meaning set forth in Article 5.8 of this Agreement.
“Court” has the meaning set forth in the Asset Purchase Agreement.
“Deliverables”has the meaning set forth under the R&D Work Plan.
“Disclosing Party” has the meaning set forth in the Asset Purchase Agreement.
“Distribution Agreement” has the meaning set forth in the Asset Purchase Agreement.
“Equipment” has the meaning set forth in Article 5.6(a) of this Agreement.
“Failure Notice” has the meaning set forth in Article 3.4 of this Agreement.
“Finally Rejects” has the meaning set forth in Article 3.4 of this Agreement.
“Force Majeure Event” has the meaning set forth in Article 10.4(a) of this Agreement.
3
Source: CONFORMIS INC, 10-Q, 11/1/2019
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting