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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/21/19 Fuse Medical, Inc. 10-K 12/31/18 120:42M ActiveDisclosure/FA |
Document/Exhibit Description Pages Size
1: 10-K Annual Report HTML 861K
4: EX-10.14 Material Contract HTML 285K
5: EX-10.15 Material Contract HTML 1.08M
6: EX-10.16 Material Contract HTML 253K
7: EX-10.17 Material Contract HTML 73K
8: EX-10.18 Material Contract HTML 278K
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2: EX-10.4 Material Contract HTML 56K
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48: EX-10.58 Material Contract HTML 122K
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52: EX-10.62 Material Contract HTML 121K
53: EX-10.63 Material Contract HTML 113K
54: EX-10.64 Material Contract HTML 55K
55: EX-21.1 Subsidiaries List HTML 29K
56: EX-23.1 Consent of Experts or Counsel HTML 30K
57: EX-31.1 Certification -- §302 - SOA'02 HTML 38K
58: EX-31.2 Certification -- §302 - SOA'02 HTML 37K
59: EX-32.1 Certification -- §906 - SOA'02 HTML 35K
66: R1 Document and Entity Information HTML 65K
67: R2 Consolidated Balance Sheets HTML 109K
68: R3 Consolidated Balance Sheets (Parenthetical) HTML 53K
69: R4 Consolidated Statements of Operations HTML 92K
70: R5 Consolidated Statement of Changes in Stockholders' HTML 73K
Equity (Deficit)
71: R6 Consolidated Statements of Cash Flows HTML 125K
72: R7 Nature of Operations HTML 43K
73: R8 Significant Accounting Policies HTML 79K
74: R9 Maxim Acquisition HTML 81K
75: R10 CPM Acquisition HTML 36K
76: R11 Property and Equipment HTML 56K
77: R12 Revolving Line of Credit HTML 43K
78: R13 Notes Payable - Related Parties HTML 33K
79: R14 Commitments and Contingencies HTML 49K
80: R15 Stockholders' Equity HTML 151K
81: R16 Income Taxes HTML 160K
82: R17 Concentrations HTML 70K
83: R18 Related Party Transactions HTML 74K
84: R19 Subsequent Events HTML 34K
85: R20 Significant Accounting Policies (Policies) HTML 144K
86: R21 Significant Accounting Policies (Tables) HTML 37K
87: R22 Maxim Acquisition (Tables) HTML 75K
88: R23 Property and Equipment (Tables) HTML 56K
89: R24 Commitments and Contingencies (Tables) HTML 46K
90: R25 Stockholders' Equity (Tables) HTML 148K
91: R26 Income Taxes (Tables) HTML 162K
92: R27 Concentrations (Tables) HTML 77K
93: R28 Nature of Operations (Details Narrative) HTML 47K
94: R29 Significant Accounting Policies (Details HTML 83K
Narrative)
95: R30 Significant Accounting Policies - Estimated Useful HTML 39K
Lives of Assets (Details)
96: R31 Maxim Acquisition (Details Narrative) HTML 51K
97: R32 Maxim Acquisition - Schedule of Components of HTML 42K
Aggregate Purchase Price (Details)
98: R33 Maxim Acquisition - Summary of Assets Acquired and HTML 79K
Liabilities Assumed (Details)
99: R34 CPM Acquisition (Details Narrative) HTML 62K
100: R35 Property and Equipment (Details) HTML 46K
101: R36 Property and Equipment (Details Narrative) HTML 32K
102: R37 Revolving Line of Credit (Details Narrative) HTML 83K
103: R38 Notes Payable - Related Parties (Details HTML 51K
Narrative)
104: R39 Commitments and Contingencies (Details Narrative) HTML 58K
105: R40 Commitments and Contingencies - Summary of HTML 41K
Operating Leases (Details)
106: R41 Stockholders' Equity - Summary of Compensation HTML 43K
Expense for Stock Options Granted to Board
Members, Employees And Marketing Representatives
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107: R42 Stockholders' Equity (Details Narrative) HTML 49K
108: R43 Stockholders' Equity - Summary of Stock Option HTML 70K
Activity (Details)
109: R44 Stockholders' Equity - Summary of Restricted Stock HTML 62K
Awards Activity (Details)
110: R45 Income Taxes - Components of Income Tax Expense HTML 52K
(Benefit) (Details)
111: R46 Income Taxes - Significant Components of Deferred HTML 73K
Income Tax Assets and Liabilities (Details)
112: R47 Income Taxes (Details Narrative) HTML 42K
113: R48 Income Taxes - Reconciliation of Income Tax HTML 50K
Computed at U.S. Statutory Rate to Effective
Income Tax Rate (Details)
114: R49 Concentrations - Significant Customers with HTML 38K
Individual Percentage of Total Revenues Equaling
Ten Percent (10%) or Greater (Details)
115: R50 Concentrations - Significant Customers with HTML 38K
Concentration of Accounts Receivable Representing
Ten Percent (10%) or Greater of Accounts
Receivable (Details)
116: R51 Concentrations - Significant Suppliers Represented HTML 40K
Ten Percent (10%) or Greater of Goods Purchased
(Details)
117: R52 Related Party Transactions (Details Narrative) HTML 133K
119: XML IDEA XML File -- Filing Summary XML 129K
118: EXCEL IDEA Workbook of Financial Reports XLSX 75K
60: EX-101.INS XBRL Instance -- fzmd-20181231 XML 1.55M
62: EX-101.CAL XBRL Calculations -- fzmd-20181231_cal XML 169K
63: EX-101.DEF XBRL Definitions -- fzmd-20181231_def XML 521K
64: EX-101.LAB XBRL Labels -- fzmd-20181231_lab XML 1.12M
65: EX-101.PRE XBRL Presentations -- fzmd-20181231_pre XML 846K
61: EX-101.SCH XBRL Schema -- fzmd-20181231 XSD 171K
120: ZIP XBRL Zipped Folder -- 0001564590-19-008819-xbrl Zip 137K
EXHIBIT 10.28
FH Ortho
Distributor Agreement
DISTRIBUTOR
AGREEMENT
This Agreement is entered into to be effective as of January 1st, 2016 by and between FH Ortho, Inc., 4118 N. Nashville Avenue, Chicago, IL 60634 (the "Company") and CPM Medical Consultants, LLC, 1565 N. Central Expressway, Suite 200, Richardson, TX 75080 ("Distributor").
RECITALS:
A.The Company and Distributor desire to establish a relationship in which the Company will sell and Distributor will purchase and resell the Company's products specified herein to customers located within the territory specified herein.
B.The Company and Distributor seek to assure a thorough understanding of the obligations assumed by each.
AGREEMENT:
In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Exclusive Distributor.
a. Appointment as Distributor. Subject to the terms and conditions of this Agreement, the Company hereby grants Distributor the exclusive right to purchase the products listed on Exhibit A attached hereto, as may be amended from time to time by written agreement of the parties to add additional products (the "Products") for resale to customers located in the geographical territory described on Exhibit B attached hereto (the "Territory") for use within the field of orthopedic I sport surgery (the "Field"). The Company shall have the right to discontinue any of the Products, to make Product improvements and to materially change the design of the Products. The Company agrees to provide Distributor with reasonable advance notice of such discontinuances, improvements or changes in design.
b. Exclusiveness. The parties agree that the "exclusive" nature of the foregoing appointment prohibits the Company from itself selling the Products in the EXCLUSIVE Territory for use within the Field and from granting any third party the right to sell the Products in the EXCLUSIVE Territory for use within the Field. Expansion of additional and EXCLUSIVE territory is based upon mutual discussion and agreement.
c. Non-Exclusiveness. In the State of Texas and Louisiana there are non-exclusive areas where the company may sell product through itself or other third party entities. Notification by the
Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
Company to the Agent will be provided prior to such selling arrangements being put in place. These non-exclusive areas are areas where minimal or no sales have been recorded for the past YEAR.
d. Sales Outside Distributor's Assigned Territory. Distributor agrees not to market, promote, sell or deliver, directly or indirectly, any of the Products outside of the Territory without written consent from the Company. Distributor shall direct to the Company all orders and inquires it receives concerning the Products from parties outside of the Territory. Distributor shall not be entitled to any compensation should a sale result to a party outside of the Territory as a result of any inquiries the Distributor directs to the Company.
e. Leads. The Company agrees to forward to Distributor any orders or requests for information it may receive regarding the Products from a person who is located within the Territory.
2. Purchase of Products.
a. Placement of Orders. Distributor shall order the Products by delivering a written purchase order to the Company by mail, email or fax. Orders shall be binding upon the Company only upon its written acceptance or upon shipment of the Products.
b. Terms and Conditions. This Agreement sets forth the exclusive contract terms between the parties and shall apply to all orders for the Products. The Company rejects any terms in any order forms submitted by Distributor or other Distributor documents which are different from or additional to the provisions hereof and no such terms shall be binding upon the Company notwithstanding the Company's acceptance and shipment of Products ordered in Distributor's orders containing such terms.
3. Prices and Payment.
a. Prices. The prices for the Products payable by Distributor to the Company shall be the Company's standard distributor list prices that are in effect at the time Distributor submits its order to the Company. The current standard distributor price list of the Products is attached as Exhibit C to this Agreement. . The Company shall have the right to change the standard distributor price list not more than once every 12-month period. The Company shall provide Distributor at least 30 days written notice in advance of the effective date of the new price list. The Company will honor the previous pricing for orders received prior to the effective date of the new price list provided that the orders are for not more than a 60 days supply of Products based on the Distributor's prior 6 months Product purchases. The company will not increase prices more than 3% per year.
b. Taxes: Shipping Costs. All prices are quoted F.O.B. the Company's Chicago, Illinois facility. Distributor shall pay any and all taxes, fees, duties or other governmental charges and for any and all shipment and shipping insurance costs
c. Payment. Distributor shall make all payments in U.S. dollars to the Company's Chicago, Illinois facility by the thirtieth (30th) day after the date of the Company's invoice. If payment is received within 10 days of invoice, a 2% (two) discount will be applied to that invoice not including shipping charges. These payment terms will not apply to Distributor until the Company
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
has received the credit information requested from Distributor, which may include financial statements of the Distributor, bank references, trade references and other similar information as requested by the Company, that provides the Company with reasonable assurance of payment. Distributor shall provide additional credit information from time to time as requested by the Company to verify its creditworthiness. The Company reserves the right, without liability to Distributor, to refuse to ship additional Products and to otherwise suspend performance under this Agreement if at any time (a) the Distributor fails to provide such requested information to provide the Company reasonable assurance of payment or (b) the Distributor is delinquent in payment of Products previously shipped.
d. Late Payment Fee/Collection Costs. Any amounts not paid by Distributor when due will be subject to a late payment fee computed daily at a rate equal one percent (1.0%) per month or at the highest rate permitted under applicable usury law, whichever is lower. In addition, Distributor shall be liable to the Company for all costs incurred by the Company in its collection of any amounts owing by Distributor which are not paid when due, including reasonable attorneys' fees and expenses, regardless whether an actual lawsuit is commenced.
4. Delivery. Shipment and Inspection.
a. Delivery and Shipment. The Company shall deliver the Products to the carrier specified by Distributor in its purchase order at dock of the Company's Chicago, Illinois facility.
b. Inspection. Distributor shall inspect all Products immediately after arrival and shall notify the Company in writing within ten (10) days after receipt of any shortages, nonconformance with the purchase order or any other failure under this Agreement. Any shortages, or other failures under this Agreement not reported within such ten (10) Day period shall be forever waived by Distributor.
c. Delivery Dates. All delivery dates for the Products are best estimates based upon prevailing conditions when given and the Company shall not be in breach of this Agreement or otherwise liable to Distributor if it fails to meet any delivery dates.
d. Force Majeure. The Company shall not be liable to Distributor for any delay or failure of delivery or other performance caused in whole or in part by any contingency beyond the Company's reasonable control, including without limitation, acts of God, acts of any government or any agency or subdivision thereof, any acts of terrorism, or shortage or inability to secure labor, fuel, energy, raw materials, supplies or machinery at reasonable prices from regular Sources. The Company shall have the right to allocate Products between its various distributors and customers during a period of shortages without incurring any liability whatsoever to Distributor for those products supplied by Company on consignment basis. All products having been sold to Distributor and paid for by Distributor shall be void of the aforementioned shortage allocation plan.
5. Minimum Purchase Requirement.
a. Initial Requirements. Distributor agrees to order, accept delivery of and make payment in full for the number of Products set forth on Exhibit D attached hereto during the time period set forth on such Exhibit (the "Initial Minimum Purchase Requirements"). If Distributor fails to meet the Initial Minimum Sales Requirement or any Minimum Purchase Requirement established for
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
any future period during the term of this Agreement as provided in subparagraph b below, the Company shall have the right to terminate this Agreement by providing Distributor thirty (30) days notice of termination. If the Company chooses not to terminate this Agreement due to the failure of Distributor to achieve the Minimum Purchase Requirements for a given period, the shortfall will be added to the Minimum Purchase Requirement for the subsequent period.
b. Establishment of Future Requirements. The parties agree to meet and negotiate in good faith to establish Minimum Purchase Requirements for any future period during the term of this Agreement that is not established in Exhibit D at the time of execution of this Agreement. If the parties are unable to agree on Minimum Purchase Requirements for any future period of this Agreement at least thirty (30) days prior to the expiration of the current Minimum Purchase Requirement period, either party shall have the right to terminate this Agreement by delivery of sixty (60) days written notice to the other party.
c. Product Expiration Guarantee. Company agrees to sell to Distributor only product with a minimum of 3-year term to expiration. If product expiration is less than 3 years at the time of sale by Company to Distributor, Distributor has the right to exchange product at no cost or liability within I year of the initial acquisition.
d. Resterilization of any metal implant will be charged to Distributor at the Company's cost to do such.
6. Company's Duties. The Company agrees to perform the following duties at its own expense:
a. Product Literature. The Company shall furnish Distributor reasonable quantities of sales literature and other sales material developed by the Company for use in the sale and promotion of the Products. The Company reserves the right to charge a reasonable purchase price on specific sales material and excessive quantities of sales materials, as determined by the Company from time to time.
b. Product Information Seminars. The Company shall provide, from time to time, seminars in the proper application and use of the Products for Distributor and its employees or Agents.
The parties shall mutually agree upon the location of such seminars. The cost of conducting such seminars shall be paid for by the Company and all other costs associated therewith, including travel, food and lodging expenses, shall be paid by Distributor.
c. Limited Warranty.
(i) Limited Warranty. The Company warrants to Distributor that the Products will be free from defects in materials and workmanship at the time of shipment of the Products to Distributor (the "Limited Warranty"). The Company's SOLE OBLIGATION and Distributor's SOLE REMEDY in the event of a defect covered by this warranty will be, at Company's option, to (a) replace the defective Product, or (b) refund to Distributor the purchase price paid by Distributor for such defective Product.
(ii) Warranty Procedure. In order to recover under this Limited Warranty, Distributor must contact the Company and receive written authorization for return of any
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
Product it alleges is defective. Distributor must return the alleged defective Product in accordance with the Company's RMA procedures. If the Company determines that the Product is defect and elects to replace the defective Product, all freight and insurance costs for shipping the replacement Product shall be paid by the Company. ANY
UNAUTHORIZED SHIPMENT OR SHIPMENT CONTRARY TO COMPANY'S INSTRUCTIONS WILL VOID THIS LIMITED WARRANTY. The Company will solely determine final disposition of any warranty claim.
(iii) Limited Warranty Exclusions. THIS LIMITED WARRANTY DOES NOT COVER ANY LOSS CAUSED BY CARELESS HANDLING OF THE PRODUCT. THIS LIMITED WARRANTY ALSO SHALL NOT APPLY TO ANY PRODUCT WHICH HAS BEEN DAMAGED IN TRANSIT, ABUSED, ALTERED, MODIFIED, USED IN A MANNER NOT ORIGINALLY INTENDED, OR USED IN A MANNER NOT CONSISTENT WITH THE PRODUCT INSTRUCTIONS.
(iv) Disclaimers. THE LIMITED WARRANTY SET FORTH ABOVE IS IN LIEU OF ALL WARRANTIES EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT, AND WARRANTIES ARISING FROM COURSE OF DEALING, USAGE OF TRADE OR OTHERWISE.
(v) Limited Remedies. THE REMEDIES SET FORTH IN THIS LIMITED WARRANTY ARE THE ONLY REMEDIES AVAILABLE TO DISTRIBUTOR OR ANY PERSON CLAIMING THROUGH DISTRIBUTOR FOR BREACH OF WARRANTY. COMPANY SHALL NOT HAVE ANY LIABILITY TO ANY PERSON FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT OR SPECIAL DAMAGES OF ANY DESCRIPTION, WHETHER ARISING OUT OF WARRANTY (INCLUDING ANY IMPLIED WARRANTIES) OR ANY OTHER CONTRACT, NEGLIGENCE OR OTHER TORT OR OTHERWISE.
d. Insurance. The Company shall maintain products liability insurance coverage with respect to design, development and manufacture of the Products in amounts no less than One Million Dollars ($1,000,000) per incident with a maximum of Two Million Dollars ($2,000,000) per year, and shall furnish Distributor with written evidence of such coverage upon request.
7. Distributor's Duties. Distributor agrees to perform reasonable best efforts in the following duties at its own expense:
a. Promotion of Products. Distributor agrees to devote its best efforts to promote the sale of and stimulate interest in the Products in the Territory. Without limiting the generality of the foregoing, Distributor shall investigate and follow-up on any and all inquiries from potential customers within the Territory, however generated, and shall promptly handle all correspondence and personal contacts as required with such potential customers in pursuing such leads. Distributor will be expected to exhibit at trade shows, train surgeon customers in the use of the Products.
b. Personnel. Distributor will hire and maintain personnel with sufficient technical expertise and knowledge of the Products to train customers in the use of the Products. Distributor
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
shall be solely responsible for hiring, training, compensation, termination and all other matters relating to any persons, companies or corporations employed by Distributor for any reason whatsoever.
c. Marketing Plan. Distributor agrees to submit to the Company, for its approval, a marketing plan and to submit revisions to such plan to the Company for its approval every sixe months during the term of this Agreement. Distributor agrees to carry our its marketing efforts in substantial compliance with the marketing plan as approved by the Company. The initial marketing plan, as approved by the Company, is set forth on Exhibit E attached hereto.
d. Inventory. Distributor will at all times maintain an inventory of the Products sufficient to meet reasonably anticipated orders in the Territory.
e. Altering Company's Products, Instruments. Literature or Packaging. Distributor agrees not to alter, in any way, the Company's Products, the Product packaging or labeling or Product literature without the express, prior written approval of the Company. All promotional or marketing literature or documentation relating to the Products prepared by Distributor shall be subject to the prior written approval of the Company and may not be used without such approval having first been obtained.
f. Reports. Distributor agrees to submit to the Company all reports reasonably requested by the Company, including, without limitation, inventory reports, which will reflect beginning and ending inventory levels of all Products.
g. Product Warranties. Distributor shall not make any warranty or representation as to the Products or promise any remedies or return policies relating thereto which is different from or in addition to the warranties, representations, remedies and return policies contained in the Company's Written Product literature, Product packaging inserts and/or online policies, as amended from time to time by the Company.
h. Permits and Licenses. Distributor shall obtain all necessary governmental and other permits and licenses which may be required for Distributor to promote and sell the Products in the Territory
i. Laws and Regulations. Distributor shall conform to all applicable laws and regulations and to the highest business ethics in performing its obligations in accordance with the terms of this Agreement.
j. Competitive Products. During the term of this Agreement, Distributor agrees not to sell, handle, promote or be involved, directly or indirectly, in the offering for sale, promotion or manufacture of any product, which competes with the Products in the Territory without the Company's prior written approval.
k. Doctor Training. Distributor will ensure that each doctor/surgeon using the Products is properly trained in its use. If requested by the Company, Distributor shall confirm such training through use of a signed surgeon training agreement or such other confirmation method as requested by the Company.
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
l. Incident Report. Distributor shall advise the Company of any incident of which Distributor becomes aware that involves or may involve the malfunction of the Product. Notice shall be as soon as possible and in no event later than five (5) business days from the date upon which Distributor becomes aware of such incident.
m. Customer Complaints and Service Requirements. Distributor shall use its reasonable and best efforts to resolve all customer complaints relating to the quality of services provided by Distributor in conjunction with the Products in a manner consistent with the Company's commitment for exceptional customer service. Distributor agrees to report to the Company any customer complaints.
n. Product Tracking. Distributor shall maintain a system in place to track each Product. Such system will, at a minimum, be able to identify a Product to its final destination and shall have recall procedures in place, which facilitate locating each Product, shipped in the event customer notifications or product modifications are required. Such reports shall include at least the following:
(i) Customer name and purchase order number
(ii) Address where products were delivered
(iii) Date of sale
(iv) Lot or serial number (if applicable)
(v) Company product number
(vi) Quantities sold
Upon termination or expiration of this Agreement, Distributor shall, at the Company's request, deliver all records relating to the location of Products to the Company.
o. o.Recall. If Company, any governmental agency or other proper authority issues a product recall of any of the Products, Distributor agrees to fully cooperate with Company (i) in promptly contacting any purchasers which Company desires to be contacted during the course of any such recall, (ii) in promptly communicating to such purchasers such information or instructions as Company may desire be transmitted to such purchasers, (iii) in obtaining the removal of all such recalled Products from Distributor's inventory and the inventory of its customers and (iv) in disposing of such recalled Product as Company so directs. Company agrees to reimburse Distributor for all direct out-of-pocket costs and expenses actually incurred by Distributor as a result of securing the removal of and disposing of such recalled Products as requested by Company.
p. Insurance. Distributor shall carry general liability, products liability and property damage insurance covering all hazards, injuries, losses or damages caused by or arising out of the possession or sale of the Products by Distributor in such amounts and with such reputable insurance companies as the Company shall reasonably approve. Distributor shall provide the Company with insurance certificates evidencing its insurance coverage.
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
q. Ownership. Distributor represents and warrants that it has accurately disclosed to the Company its ownership structure and that no person or entity that is a competitor of the Company owns ten percent or more of the Distributor. Distributor agrees to notify the Company in writing of any change in its ownership within fifteen (15) days of the effective date of such change.
8. Trademarks. Patents and Use of Name. Distributor acknowledges that it has no right, title or interest in any of the Products, nor in any patents, patent applications, trade secrets, trademarks, trade names, service marks, knowhow or copyrights applicable thereto. Distributor recognizes the Company's exclusive ownership and right, title and interest in and to all of the Company's trademarks and trade names (whether or not registered in the Territory) used in connection with the Products. Distributor acknowledges that the Company is not by this Agreement granting any right or license whatsoever, by implication, estoppel or otherwise, to Distributor to utilize any patents, patent applications, trade secrets, trademarks, trade names, service marks, knowhow or copyrights which the Company may have or may secure in the future relating to any of the Products. Distributor agrees not to use the Company's name, any other similar name or any other trademark of the Company except in advertising, pamphlets, letterhead or other media promotion of the Products, which is approved in writing by the Company prior to its use or dissemination. Distributor may not use the Company s name or any of the Company's trademarks in its corporate or business name, or in any other manner, which the Company deems adverse to its interests.
a. Custom Device Development and Intellectual Property Ownership. Any intellectual property generated via the specific development of a specific custom product on behalf of a specific customer or by the Distributor will be shared between the company, the costumer and the distributor as follows 50% for the company developing, 25% for the distributor and 25% for the customer (surgeon).
9. Confidential Information.
a. Definition. "Confidential Information" means any information or compilation of information which is proprietary to the Company and which relates to its existing or reasonably foreseeable business, including, but not limited to, trade secrets and information contained in or relating to product designs, manufacturing methods, processes, techniques, tooling, sales techniques, marketing plans or proposals, existing or potential customer lists and all other customer information. Information shall be treated as Confidential Information irrespective of its source and all information, which the Company identifies as being "confidential" or "trade secret" shall be presumed to be Confidential Information. Confidential Information shall not include information which: (I) was in the public domain at the time it was disclosed; (ii) enters the public domain other than by breach of this Agreement; (iii) is known to the receiving party at the time of its disclosure; (iv) is disclosed to the receiving party without restriction by a third party who has the right to do so; or (v) is developed by the receiving party independently of any information disclosed hereunder.
b. Nondisclosure. During the term of this Agreement and at all times thereafter , Distributor agrees to hold in strictest confidence and to never disclose, furnish, communicate, make accessible to any person or use in any way for Distributor's own or another's benefit any Confidential Information or permit the same to be used in competition with the Company. Distributor agrees to
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
refrain from such acts and omissions, which would reduce the value of the Confidential Information to the Company.
10. Independent Contractor.
a. Relationship. Distributor is and shall remain an independent contractor and is not and shall not be deemed to be an employee, joint venture, partner or franchisee of the Company for any purpose whatsoever. Accordingly, Distributor shall be exclusively responsible for the manner in which it performs its duties under this Agreement and for the profitability or lack thereof of its activities under this Agreement. All financial obligations associated with Distributor's business is the sole responsibility of Distributor. Distributor does not have, and shall not represent itself as having, any right or authority to obligate or bind the Company in any manner whatsoever.
b. Employee Obligations. Distributor shall be solely responsible to its own employees for any compensation due them and for compliance with all applicable laws with respect to workmen's compensation, withholding taxes, unemployment compensation, social security payments, and any other charges against compensation imposed by any governmental authority as to Distributor's own employees.
11. Indemnification. Distributor and Company shall indemnify each other and hold each other harmless from any and all loss, damage, liability, cost or expense (including reasonable attorneys' fees and expenses) which either may incur or suffer as a result of any claim of any kind whatsoever arising out of (a) any act or omission by Distributor or any of its agents or employees which violates this Agreement; (b) any claim for breach of representation based upon any representation given or purportedly given by Distributor, its agents or employees which is different from or in addition to written representations contained in the Company's Product literature, as amended from time to time; (c) any third party claim for personal injury, damage, economic loss or other damage, caused by or arising out of the use of the Products proximately caused by or resulting from the negligence of Distributor, its agents or employees; (d) any claim or demand arising from the employment or engagement by Distributor of any person or entity and (e) the failure of Distributor to pay amounts in respect of taxes which the Distributor is required to pay under this Agreement or in relation to the resale of the Products.
12. Term. This Agreement shall remain in force for a period of three (3) years commencing on the Effective Date, unless sooner terminated under the provisions of Section 13 below. This Agreement may only be renewed after the expiration of its original term by the mutual written agreement of both parties hereto.
13. Termination. This Agreement may be terminated prior to the expiration of its term pursuant to any of the following provisions:
a. Failure to Meet Minimum Purchase Requirements. The Company may terminate this Agreement in accordance with the provisions of Section 5(a) if Distributor fails to meet any Minimum Purchase Requirement.
b. Failure to meet Future Minimum Purchase Requirements. Either party shall have the right to terminate this Agreement with notice in accordance with the provisions of Section 5(b) if the parties are unable to agree on future Minimum Purchase Requirements.
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
c. Breach of Agreement. Either party may terminate this Agreement by delivery of written notice to the other party ifthe other party breaches any ofthe terms and conditions of this Agreement; provided, however, if the breach is curable such notice shall not be effective unless and until such breach remains uncured for a period of thirty (30) days after delivery of such notice.
d. Change in Management. The Company may terminate this Agreement at any time effective upon delivery of written notice to Distributor if the ownership of Distributor should change so that ten percent (10%) or more of the Distributor is owned by a competitor of the Company.
e. Insolvency. Either party may terminate this Agreement effective immediately upon delivery of written notice to the other party, if the other party (i) ceases to actively conduct its business, (ii) files a voluntary petition for bankruptcy or has filed against it an involuntary petition for bankruptcy, (iii) becomes unable to pay its debts as they become due, (iv) makes a general assignment for the benefit of its creditors or (v) applies for the appointment of a receiver or trustee for substantially all of its property or assets or permits the appointment of any such receiver or trustee who is not discharged within thirty (30) days of such appointment.
f. Change in Company Ownership. If a transfer of greater than or equal to 51% equity stake of the Company to any outside party (not related to current shareholder) and if this agreement is terminated for any reason other than distributor not reaching its quotas, distributor wil I be compensated with an indemnity equal to its last 6 months revenue.
14. Obligations Upon Termination. Following expiration or termination of this Agreement for any reason, the following provisions shall apply:
a. Return of Samples and Confidential Information. Distributor shall within ten (10) days after request by the Company, return to the Company all sample Products and copies of Product literature and materials and all documents or copies thereof containing any Confidential Information of the Company.
b. Payment Obligations. Distributor shall promptly pay when due any amounts owing to the Company on orders of the Products accepted by the Company prior to the effective date of expiration or termination.
c. Repurchase of Product Inventory. The Company shall have the option, exercisable in its sole discretion, to repurchase from Distributor (or arrange to have a distributor of the Company purchase from Distributor) any current, non-damaged Product inventory with preemption date of at least 6 months. Current, non-damaged products with a preemption date of less than one year but more than six months may be purchased back with a 20% restocking charge. The Company shall pay to Distributor the price, which is equal to the lesser of (I) the Distributor's original purchase price or (2) a price, which reflect the condition and marketability of the Products. If the Company chooses to repurchase (or have its other distributor repurchase) the Distributor's product inventory, (I) Distributor shall cease further marketing and distribution of the Products, except to fulfill sales for which it was contractually committed prior to the expiration or termination of this Agreement and (ii) Distributor shall discontinue any and all use of any of the Company's logos, trademarks and trade names and any of the Company's Confidential Information.
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
d. Sale of Non-purchased Inventory. Distributor shall have the right to sell any Products in its inventory which are not repurchased by the Company (or its designated distributor) as provided in subparagraph c above, for a period of one hundred twenty (120) days after the effective date of expiration or termination of this Agreement.
e. Continued Sales By Company. The sale of Products to Distributor by the Company after expiration or termination of this Agreement shall in no manner constitute or be deemed a renewal or extension of this Agreement nor the appointment, retention or reappointment of Distributor as a distributor of Products in the Territory or el s e w here.
f. Continuing Obligations. The rights and obligations of parties under Sections 9 —Confidential Information, 1 1 - Indemnification, 13 —Obligations Upon Termination and 15 —General Provisions herein shall survive the expiration and termination ofthis Agreement and shall continue in full force and effect.
15. General Provisions.
a. Notices. Any notice required or permitted to be given under this Agreement shall be deemed delivered (I) when received if delivered by hand, (ii) the next business day if placed with a reputable express carrier for delivery during the morning of the following business day, or (iii) three (3) days after depositing in the U.S. mails for delivery by registered or certified mail, return receipt requested, postage prepaid and addressed to the appropriate party at the address set forth on the first page of this Agreement. If either party should change its address for notice purposes, such party shall give written notice of the other party of the new address in the manner set forth above, but any such notice shall not be effective until actually received by the addressee.
b. Modification and Waiver. No purported amendment, modification or waiver of any provision hereof shall be binding unless set forth in a writing signed by both parties (in the case of amendments and modifications) or by the party to be charged thereby (in the case of waivers). Any waiver shall be limited to the circumstance or event specifically referenced in the written waiver document and shall not be deemed a waiver of any other term of this Agreement or of the same circumstance or event upon any recurrence thereof.
c. Assignment. Distributor or Company shall not assign, transfer or sell all or any part of its rights or obligations hereunder, by operation of law or otherwise, without the prior written consent of the Company. This Agreement shall be binding upon and inure to the benefit of any successor or assignee.
d. Severability and Interpretation. In the event that a court of competent jurisdiction holds a provision of this Agreement invalid, the remaining provisions shall nonetheless be enforced in accordance with their terms. Further, in the event that any provision is held to be overbroad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and shall be enforced as amended.
e. LIMITATION OF REMEDY. THE COMPANY SHALL HAVE NO LIABILITY TO DISTRIBUTOR OR ANY OTHER PARTY FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY DESCRIPTION, WHETHER ARISING OUT OF
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
WARRANTY OR OTHER CONTRACT, NEGLIGENCE OR OTHER TORT, OR OTHERWISE.
f. Controlling Law. This Agreement shall be governed by, construed and interpreted in accordance with the laws of the State of Illinois, without application of its conflict of laws provisions.
g. Entire Agreement. This Agreement, together with the Exhibits, constitutes the entire Agreement between the parties and supersedes any and all prior and contemporaneous oral or written understandings between the parties relating to the subject matter hereof.
The parties have executed this Agreement in the manner appropriate to each to be effective the day and year entered on the first page hereof.
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FH ORTHOPEDICS, INC. |
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(The “Company”) |
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Jim Hook, Managing Director |
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CPM MEDICAL CONSULT, LCD |
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("Distributor") |
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131 1 McLaughlin, CPA |
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Chief Financial Officer |
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
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A. |
Products |
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B. |
Territory |
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C. |
Prices |
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D. |
Minimum Purchase Requirements |
Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
Products
The Arrow Universal Shoulder Prosthesis
CoLS Classic ACL Reconstruction System
Calcanail Calcaneal Fracture Nail
Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
Territory
Exclusive:
The following Counties EAST and NORTH of the line, inclusive, in the State of Texas:
Hardeman, Foard. Knox, Haskell, Jones, Taylor, Coleman, Brown, Mills, Lampasas, Coryell, Bell Milani, Robertson, Leon, Houston, Trinity, Angelina, San Augustine and Sabine with the exception of Bowie County (Texarkansas) in the far Northeast corner of the State.
Non-Exclusive:
All of the counties in the State of Texas and Louisiana not noted in the "EXCLUSIVE" territory listed above.
Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
The attached price list is in effect from the present time until September 30, 2016. A 3% price increase will be implemented on October 1, 2016 and will be in effect for 1 year until October 1, 2017.
2015-16 CPM Medical Consultants, LLC
Effective through September 30’ 2016-GS
V5 CoLS instrument set
Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
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Distribution Agreement FH Orthopedics, Inc — CPM Medical Consultants
The quota for the FY 2015-16 is $807,100.00. The minimum purchase requirements for the same period is 75% of the $807,100 or $605,325. The minimum purchase requirements reflect an 18% increase over the prior year.
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| This ‘10-K’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| Filed on: | 3/21/19 | 8-K | ||
| For Period end: | 12/31/18 | |||
| 10/1/17 | ||||
| 10/1/16 | ||||
| 9/30/16 | 10-Q | |||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/14/23 Fuse Medical, Inc. 10-K 12/31/22 74:8.7M ActiveDisclosure/FA 3/31/22 Fuse Medical, Inc. 10-K 12/31/21 72:8.6M ActiveDisclosure/FA 3/31/21 Fuse Medical, Inc. 10-K 12/31/20 72:7.1M ActiveDisclosure/FA |
