This excerpt taken from the BSMD 10-Q filed May 11, 2009.
9. Subsequent Event
On April 16, 2009, the Company entered into an international distribution agreement with Nippon Kayaku Co., Ltd. (Nippon Kayaku). The agreement grants Nippon Kayaku the exclusive right to distribute the Companys HepaSphere Microspheres and Embosphere Microspheres in Japan. The agreement provides that Nippon Kayaku will be responsible for filing, obtaining and maintaining all regulatory approvals necessary for the sale, marketing, pricing and reimbursement of the products in Japan, including performing any clinical trials required as a result of seeking such regulatory approvals in Japan. Assuming product approval, the Company will provide HepaSphere Microspheres and Embosphere Microspheres to Nippon Kayaku for distribution and sale in Japan in accordance with a predetermined formula that is indexed to the Japanese government reimbursement rate. Additionally, Nippon Kayaku has agreed to make a nonrefundable milestone payment of $1.00 million in 2009, and up to $3.00 million in additional milestone payments based upon specified objectives, including achievement of clinical, regulatory and sales goals. The term of the agreement begins on April 16, 2009 and runs until April 16, 2022, unless earlier terminated (i) by either party as a result of a material breach or default under the agreement that remains uncured, (ii) as a result of bankruptcy, insolvency, reorganization, receivership or otherwise of either party, and (iii) on a product-by-product basis if the parties are unable to agree on a purchase price for a particular product or if Nippon Kayaku reasonably determines that a product infringes or is likely to infringe on the intellectual property of a third party.