Technology License


Agreement


 


	 	Territories:
	 	United States of America
	 	China
	 	India
	 	Canada
	 	Mexico


 



    	 



    	 



    

 


	Contents	 	 
	 	 	 
	1	Definitions and Interpretation	5
	 	 	 
	2	License	11
	 	 	 
	3	Development of Licensed Product	15
	 	 	 
	4	Manufacture of Licensed Product	17
	 	 	 
	5	Marketing the Licensed Product	19
	 	 	 
	6	Distribution of the Licensed Product	22
	 	 	 
	7	Project Management	24
	 	 	 
	8	Confidentiality and Intellectual Property	29
	 	 	 
	9	Consideration	33
	 	 	 
	10	Warranties and Indemnities	34
	 	 	 
	11	Termination and Consequences	37
	 	 	 
	12	General Provisions	38
	 	 	 
	Schedule	 	 
	 	 	 
	Execution	 	 


 



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PARTIES


 


		1	Manthey Redmond (Aust) Pty Ltd (Licensor) 



 


AND


 


		2	Manthey Redmond Corporation (Licensee)



 


INTRODUCTION


 


		A	Licensor owns the Technology.



 


		B	Licensee wishes to develop and exploit the Technology within the defined territory.



 


		C	Licensor wishes to appoint Licensee, and Licensee wishes to accept the appointment, to develop and exploit the Technology on
the terms and conditions of this agreement.



 



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Definitions and Interpretation


 



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1               Definitions
and Interpretation


 


1.1               Definitions


 


In this agreement:


 


Agreement means this agreement including the schedules.


 


Affiliate of a Party shall mean any entity that controls,
is controlled by or is under common control with that Party; and "control" for purposes of this definition shall mean
the possession of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership
of voting stock, by contract or otherwise. In the case of a corporation, "control" shall mean the direct or indirect
ownership of more than fifty percent (50%) of the outstanding voting stock.


 


AUD means the lawful currency of Australia;


 


Business Day means any day except a Saturday or a Sunday
or other public holiday in Queensland, Australia;


 


Cheque or Check means a promissory note issued by a financial
institution pre- approved by the Licensor.


 


Clause or cl. or cll. means a provision
or provisions of this agreement.


 


Commencement Date means the date specified in the schedule;


 


Confidential Information means:


 


		(a)	in respect of Licensor, the items specified in cl 8.1(a); and



 


		(b)	in respect of Licensee, the items specified in cl 8.1(b);



 


Data Protection Laws means any law (including but not
limited to laws relating to the protection of the privacy of natural persons) which applies to the collection, storage, processing
or use of data including, but not limited to, Personal Data;


 


Dispose or Disposition shall mean the sale, lease, hire,
transfer or other conveyance of the Licensed Product;


 


“Dollar” “U.S. Dollar” and “U.S.
$” shall mean lawful money of the United States of America;


 


Fiscal quarter or quarter shall mean a normal quarterly
accounting period of licensee (or sublicensee) within the licensee’s (or sublicensee’s) fiscal year;


 


GST Law means the A New Tax System (Goods and Services
Tax) Act 1999, or any other act imposing a goods and services tax in Australia;


 


Knowhow or Know-how means all information including without
limitation trade secrets, whether or not patentable, relating to, used in, or useful in connection with the Technology;


 


Improvements means any improvement, modification, enhancement
or development to any of the Technology;


 


Insolvency Event, in relation to a Party, means any of
the following events:


 



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(a)       the
Party ceases to (or is unable to) pay its creditors (or any class of them) in the ordinary course of business, or announces its
intention to do so;


 


(b)       a
receiver, receiver and manager, administrator, insolvency trustee (court appointed or otherwise), liquidator or similar officer
is appointed to that Party or any of its assets;


 


(c)       such
Party enters into, or resolves to enter into, a scheme or arrangement, compromise or composition with any class of creditors;


 


(d)       a
resolution is passed or an application to a court is taken for the winding up, dissolution, official management or administration
of that Party; or


 


(e)       anything
having a substantially similar effect to any of the events specified above happens under the law of any applicable jurisdiction;


 


Intellectual Property Rights means the rights comprised
in any patent, copyright, design, trade mark, eligible layout or similar right whether at common law or conferred by statute, rights
to apply for registration under a statute in respect of those or like rights and rights to protect trade secrets and knowhow, throughout
the world for the full period of the rights and all renewals and extensions;


 


License Fee means the upfront license fee specified in
the schedule;


 


Licensee Manager means the person nominated by Licensee
to perform the functions in clause 7.2 and, as at the Commencement Date, specified in the schedule;


 


Licensee Personnel means:


 


		(a)	employees of Licensee; and



 


		(b)	sub-contractors of Licensee,



 


who are listed in the schedule and who are replaceable in accordance
with cl 7.1;


 


Licensed Product shall mean the products specified in
the Schedule where the manufacture, use, offer for sale, sale, disposition, lease or import of which: (a) but for the license granted
under this agreement would infringe one or more claims of a patent (based on the Technology) which has neither expired nor been
held invalid by a court or other body of competent jurisdiction from which no appeal has been or may be taken;


 


Licensed Technology shall mean the technology licensed
pursuant to this Agreement;


 


Licensor Manager means the contact person (if any) for
Licensor specified in the schedule as at the Commencement Date and as replaced by notice in writing from Licensor to Licensee from
time to time;


 


Location means the location specified in the schedule;


 


Market means the market specified in the schedule;


 


Manufacture includes construction, assemblage, production
or other preparation for commercial use or exploitation;


 


Milestone Payments means the payments for the achievement
of Milestones as specified in the schedule;


 



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Milestones mean the outcomes of the development
and the timing for the outcomes specified in the schedule;


 


Net Sales shall mean total revenues received
by licensee (or an affiliate of the licensee) or a sublicensee (or an affiliate of a sublicensee) (i) from the use, manufacture,
distribution or disposition of a licensed product or product; or (ii) from services (provided by the licensee or an affiliate of
the licensee or a sublicensee or an affiliate of a sublicensee) related to the licensed technology including, but not limited to,
consulting, marketing, repairs and/or maintenance or training services, less the total of: (a) actual rebates and discounts
provided by licensee (or sublicensee) in the ordinary course of business in an arm’s length transaction with an unrelated
party; (b) sales tariffs, duties and/or taxes imposed on the licensed technology; (c) out bound transportation prepared or allowed;
and (d) credited returns. No deduction shall be made for commissions paid to individuals or any other entity acting as a distributor,
franchisee, sales agent or broker without the prior written approval of the Licensor.


 


Parties means Licensor and Licensee and Party means
either of them;


 


Patent Royalty means the royalty based on net sales
specified in the schedule;


 


Personal Data means any information in any form which
is capable of identifying an individual, whether or not that information also includes other information about the individual's
preferences, opinions or any other matter;


 


Practical Application means:


 


(a)       in the case of a composition or product, to manufacture;
or


 


(b)       in the case of a process or method, to practice;


 


(c)       in the case of a machine or system, to operate, and in
each case, under such conditions as to establish that the invention is being utilized and that its benefits are, to the extent
permitted by law or government regulations, available to the public on reasonable terms;


 


Product means anything that incorporates, or with modification
can incorporate, the Licensed Product;


 


Project Meeting means the meeting described in cl 7.3;


 


Project Team has the meaning specified in cl 7.3(a);


 


Relevant Markets means those markets agreed between Licensor
and Licensee, from time to time, pursuant to cl 5;


 


Research Plan means the plan for research for the development
of the Product as specified in the schedule and amended in accordance with this agreement;


 


Revenue shall mean the U.S. dollar value of all consideration
realized by licensee or sublicensee (or affiliate of licensee or sublicensee) for the use, market, manufacture, distribution,
exploitation or disposition of the licensed product or product. In the case of a product that includes more than the licensed product,
the calculation of revenue shall subtract the price paid by licensee (or an affiliate of the licensee) or paid by a sublicensee
(or an affiliate of a sublicensee) for actual costs relating to materials that are contained in or comprise the Product (but
not the price paid relating to materials that are contained in or comprise the Licensed Product) in the ordinary course
of business in an arms length transaction with an unrelated party with any subtraction for materials claimed by the Licensee (or
its affiliates) or a sublicensee (or its affiliate) to be pre-approved by the Licensor.


 



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Sublicensee means any individual, corporation, distributor,
franchisor, franchisee or entity whatsoever that is granted a sublicense in accordance with clause 2 of this agreement;


 


Sublicense Agreement means any pre-approved agreement
entered into between a licensee and sublicensee (or sublicensee with another sublicensee) in accordance with clause 2. 5 of this
agreement;


 


Sublicense Patent Royalty means the royalty based on
net sales specified in the schedule;


 


Technology means the technology specified in item 2 of
the schedule; Term means from the Commencement Date until the expiry, or extinguishment, or invalidation, or lapsing of
the last patent forming part of the Technology in the territory;


 


Territory means geographical locations set forth in Schedule.


 


Tests is as specified in the schedule and in cl 5.2.


 


Vendee means an individual, corporation or entity that
buys, purchases or acquires (by lease or otherwise) a licensed product, product or services related to the licensed technology.


 


1.2               Interpretation


 


In this agreement, unless the context otherwise requires:


 


(a)       the
Introduction is correct;


 


(b)       headings
do not affect interpretation;


 


(c)       singular
includes plural and plural includes singular;


 


(d)       words of one gender include any gender;


 


(e)       reference
to legislation includes any amendment to it, any legislation substituted for it, and any subordinate legislation made under it;


 



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(f)           reference
to a person includes a corporation, joint venture, association, government body, firm and any other entity;


 


(g)          reference
to a party includes that party's personal representatives, successors and permitted assigns;


 


(h)          reference
to a thing (including a right) includes a part of that thing;


 


(i)           reference
to two or more persons means each of them individually and any two or more of them jointly;


 


(j)           if
a party comprises two or more persons:


 


(i)        reference
to a party means each of the persons individually and any two or more of them jointly;


 


(ii)       a
promise by that party binds each of them individually and all of them jointly;


 


(iii)       a
right given to that party is given to each of them individually;


 


(iv)       a
representation, warranty or undertaking by that party is made by each of them individually;


 


(k)          a
provision must not be construed against a party only because that party prepared it;


 


(l)           a
provision must be read down to the extent necessary to be valid. If it cannot be read down to that extent, it must be severed;


 


(m)         if a thing is to be done on a day which is not a Business
Day, it must be done on the Business Day before that day;


 


(n)         another
grammatical form of a defined expression has a corresponding meaning;


 


(o)         an
expression defined in the Corporations Act 2001 or GST Law has the meaning given by the Act or GST Law at the date of this agreement;
and


 


(p)        in
the event of any inconsistency between this Agreement and a duplicate or duplicates prepared in a language other than English,
the English version shall prevail.


 



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Grant of License


 



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2               License


 


2.1               Grant
of License


 


(a)     Licensor grants to Licensee
from the Commencement Date an exclusive license for the Territory to develop, market, manufacture, distribute, dispose
and exploit the Technology and make improvements to the said Technology during the Term and on the terms and conditions
of this agreement.


 


(b)     Licensee must not, directly
or indirectly, challenge, contest, deny or assist any other person to challenge, contest or deny the validity of any Intellectual
Property Rights in the Technology.


 


(c)     Where any of the Intellectual
Property Rights in the Technology consists of any patent rights then in the event of (and each time there is) the lapsing, expiry
or termination of any of the said patent rights, the Parties hereby agree to enter into a license in accordance with this cl 2.1
for the remaining Intellectual Property Rights (excluding the lapsed, expired or terminated patent rights), such license to become
effective immediately on termination of the lapsed, expired or terminated patent right without requirement for the execution of
any further document.


 


(d)     The license
granted in cll 2.1(a) and 2.1(c) continue irrespective of the currency of any patent or design rights encompassed in the Intellectual
Property Rights in the Technology.


 


(e)     The Licensee will not use the
Intellectual Property to manufacture, have made, use or market the product in any location other than the Territory.


 


2.2               Technology
Transfer


 


As soon as practicable following the Commencement Date, Licensor
will supply to Licensee a copy of all the Technology owned and possessed by Licensor at the time and in a manner agreed between
the Parties having regard to the nature and extent of the information to be provided.


 


2.3               Improvements


 


(a)     The Parties
acknowledge that the Technology will be the subject of ongoing research and development by Licensee during the term of this agreement
and in particular in accordance with cl 2.1(a).


 


(b)     In the event that Licensee
makes or acquires any Improvements during the Term of this agreement, the Parties acknowledge that Licensee will own such
Improvements. Licensor may use such Improvements in accordance with cl 2.4.


 


(c)     In the event that Licensor
makes or acquires any Improvements during the Term of this agreement then Licensor grants a license to Licensee to bring
the Improvements to Practical Application on the same terms and conditions as provided in this agreement.


 


(d)     The Parties acknowledge that
Licensee may (at its own cost) apply for registration of any Intellectual Property Rights which constitute an Improvement arising
from cl 2.3(b). Licensor agrees to do all things necessary (including procuring the consent of any inventors) to allow any such
registration to proceed.


 



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(e)     Nothing in this cl 2.3 requires
Licensor to research and develop the Technology during the Term of this agreement.


 


(f)     During the Term of this agreement, Licensor shall
have the right to use, free of charge, any product or process solely developed and owned by the Licensee for research, educational,
peer- review, academic and or administrative purposes.


 


2.4               Internal
Research


 


The Parties acknowledge that nothing in this agreement prevents
Licensor from conducting further research and development using any of the Intellectual Property Rights in the Technology.


 


2.5               Exploitation


 


(a)     No right to sublicense the
grant of license in clause 2.1 [or cl. 2.3(c) or cl. 8.2(a)] is hereby granted to the Licensee under the provisions of this Agreement
except for the following exceptions:-


 


exception 1: Licensee may
sublicense the Technology to another party (or parties) on condition that the party (or parties) are pre-approved by the Licensor
(in writing) and on condition that the licensee shall pay a sublicense patent royalty fee to the Licensor as set out in the schedule.


 


exception 2: A sublicensee
granted a license pursuant to exception 1 of clause 2.5(a) from the Licensee, may sublicense the Technology to another party (or
parties) on condition that the party (or parties) are pre-approved by the Licensor (in writing) and on condition that the sublicensee
shall pay a sublicense patent royalty fee to the Licensor as set out in the schedule.


 


		(b)	Licensor will provide a Template Sublicense agreement that will incorporate the general terms and conditions which will be
mandatory for all such sublicenses granted under clause 2.5(a) of this Agreement. Any sublicense must meet the material requirements
of the Template Sublicense Agreement and not include clauses inconsistent with the Template Sublicense Agreement and must be approved
by the licensor (in writing) prior to execution by the signing parties;



 


		(c)	In the event a sublicense agreement incorporates the appointment to develop under clause 3.1; and/or the appointment to manufacture
under clause 4.1; and/or appointment to market under clause 5.1; and/or appointment to distribute under clause 6.1; the Licensor
will provide a Template Development Agreement, Template Manufacture Agreement, Template Marketing Agreement, Template Distribution
Agreement or consolidation of Template agreements as the case may be which will be mandatory for all such appointments under clauses
3.1, 4.1, 5.1 and/or 6.1 of this Agreement. Any appointment must meet the material requirements of the Template Agreement and not
include clauses inconsistent with the Template Agreement and must be approved by the licensor (in writing) prior to execution by
the signing parties.



 



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		(d)	It is recognized that, over a period of time, certain template agreements may require variation to exploit certain markets
and the parties hereby agree to collaborate on the drafting of variations and to include agreed variations in any subsequent template
agreements entered into by the Licensee or a sublicensee.



 


		(e)	Licensee will furnish Licensor will copies of all sublicense agreements once executed.



 


2.6               Use
of Names and Logos


 


Nothing in this agreement permits a Party to use the name or
logo of the other


Party without the prior written consent of that other Party.


 



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Research and Development


 



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3               Development
of Technology


 


3.1               Appointment
to Develop


 


Licensor appoints and licenses Licensee from the Commencement
Date and during the Term to carry out the Research Plan to develop the Technology in accordance with this agreement to produce
the Product and bring it to Practical Application.


 


3.2               Product
Development


 


(a)       Licensee must use its best
efforts to produce the Licensed Product in accordance with this agreement.


 


(b)       Licensee must meet the Milestones
in accordance with the timetable specified in the schedule.


 


(c) Licensee must ensure that any contractor engaged by the
licensee executes a non-disclosure agreement in the form of the Template Non-disclosure agreement contained the schedule.


 


3.3               Quality
Control


 


The Licensee hereby agrees to grant the Licensor unfettered
access necessary for the Licensor to satisfy itself that the Licensee is carrying out the Research Plan.


 


3.4               Termination
of Appointment to Develop


 


(a)       The appointment to develop
the Technology to produce the Licensed Product commences on the Commencement Date and continues for the Term unless terminated
in accordance with cl 3.4(b).


 


(b)       The appointment
to develop the Technology to produce the Licensed Product may only be terminated in one of the following ways:


 


(i)     by Licensor
if Licensee fails to meet the Milestones and the Parties agree in writing that Licensee cannot meet the Milestones and cannot sub-contract
the development to the satisfaction of both Parties.


 



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Manufacture of Licensed Product


 








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4               Manufacture
of Licensed Product


 


4.1               Appointment
to Manufacture


 


Licensor appoints and licenses Licensee from the Commencement
Date to manufacture the Licensed Product (or a Product that incorporates the Licensed Product) during the Term at the Location.


 


4.2               Improvements


 


(a)       If Licensor makes
or acquires any Improvements to the Technology and Licensor requires Licensee to adopt such Improvements in the manufacture of
the Product, Licensor will notify Licensee of such Improvements and such Improvements will become part of the Technology to be
used by Licensee in accordance with this agreement.


 


(b)       If Licensee makes
or acquires any Improvements to the Technology, the Parties agree that Licensee will own such Improvements. Licensor may use such
Improvements for research purposes only. Such Improvements will become part of the Technology to be used by Licensee in accordance
with this agreement.


 


4.3               Quality
Control


 


(a)       Licensee must ensure
that the Licensed Product is manufactured and transported (to the extent required by this agreement) in accordance with all applicable
laws and standards.


 


(b)       Licensee must put
into place testing procedures and quality control procedures approved in writing by Licensor in relation to the manufacture of
the Licensed Product.


 


(c)       Licensee must allow
a representative of Licensor, during business hours and on giving reasonable notice, to have access to Licensee's premises to inspect
the manufacturing process of the Licensed Products.


 


(d)       Licensee acknowledges
to Licensor that Licensor has an ongoing requirement to ensure that the Licensed Product manufactured by Licensee is of a high
standard and quality.


 


(e)        Licensor may from
time to time give written directions to Licensee as to how to manufacture or to improve the quality of the Licensed Product. Licensee
must follow any such directions from Licensor.


 


(f)        If Licensor gives
written directions to Licensee and Licensee does not follow the directions, or if the quality of the Licensed Product does not
improve to the satisfaction of Licensor, Licensor may terminate this agreement by notice in writing to Licensee.


 


4.4               Term
and Termination


 


(a)        The appointment
to manufacture the Licensed Product or Product will commence on the Commencement Date and will continue for the Term unless
terminated in accordance with cl 4.4(b).


 



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(b)         The appointment
to manufacture the Licensed Product or Product may be terminated in any of the following ways:


 


(i)       in accordance
with cl 4.3(f) ; or


 


(ii)        by Licensor if
Licensee fails to meet its obligations under this cl 4 and the Parties agree in writing that Licensee cannot meet its obligations
and cannot sub-contract its obligations to the satisfaction of both Parties.


 



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5               Marketing
the Product


 


5.1               Appointment
to Market the Product


 


Licensor appoints and licenses Licensee to market the licensed
product during the Term pursuant to the provisions of this agreement.


 


5.2               Market
Validation


 


(a)        Licensor and Licensee
must meet regularly so as to conduct an analysis of the market and agree the Relevant Markets.


 


(b)        Licensee must
conduct field testing along with peer review of the Licensed Product in each of the Relevant Markets.


 


(c)       Licensee
must prepare a report on the field testing and peer review from each of the Relevant Markets within twenty-one (21) days of completion
of the field testing and peer review.


 


(d)       If any changes
need to be made to the Licensed Product as a result of the field testing or peer review in the Relevant Markets, Licensee must
make any necessary changes to the Licensed Product as if the changes were a development in accordance with cl 3 of this agreement
and Licensee must ensure that the resulting Licensed Product complies with all laws and regulations following the changes.


 


(e)       Licensor and Licensee
must meet within 30 days of receiving a Report prepared pursuant to clause 5.2 (c) and agree to conduct further Tests as required
and agree any changes to the Relevant Markets.


 


5.3             Marketing


 


(a)        Following Market
Validation, Licensee or, in the context of this cl 5.3, Licensee's marketing contractor, must use its best endeavors to:


 


(i)       market
the Licensed Product; and


 


(ii)     obtain sales
leads for Licensor of the Licensed Product.


 


(b)        Licensee must use
its best efforts to advertise, market and sell the Licensed Product to customers with the goal of maximizing sales of the Licensed
Product. Without limiting the generality of the foregoing, Licensee must, at its own cost:


 


(i)       undertake
marketing activities, such as market campaigns and participation in technology showcases, fairs and exhibitions to market the Licensed
Product and keep Licensor informed of these in advance;


 


(ii)      keep
Licensor informed of market conditions including competitive products and markets; and


 


(iii)     keep
Licensor informed about the sale and promotion of products which are likely to compete with the sale of the Licensed Product.


 



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(c)         Licensee must prepare
a (short) Marketing Plan (Marketing Plan) that contains:


 


(i)        the period
covered by the Marketing Plan (as agreed in writing between the Parties);


 


(ii)       Licensee's
sales goals;


 


(iii)       Licensee's
target customers;


 


(iv)       marketing
strategies, including dates where relevant; and


 


(v)       anticipated
training requirements.


 


(d)         Licensee
must prepare a (short) report on results to the Marketing Plan for the period within twenty-one (21) days of the completion of
the period, including results:


 


(i)        on
sales goals;


 


(ii)       on
target customers; and


 


(iii)      of
marketing strategies.


 


(e)         At the same time
as the report on the Marketing Plan, or within 21 days of it, a new Marketing Plan must be prepared and presented to Licensor for
each new year of this agreement, or more frequently as requested by Licensor. For a Marketing Plan for a new year:


 


(i)       the revised
Marketing Plan must be in the same format as the original and cover the same subjects, as in cl 5.3(c) and must incorporate the
analysis of the results of the period before and cl 5.3(c)(ii) to cl 5.3(c)(v) should be revised accordingly; and


 


(ii)       Licensor
may request changes to the Marketing Plan.


 


(f)         Licensee must attempt
to abide by the Marketing Plan as closely as possible, but to the extent of changes in the market and the need to vary marketing
accordingly, Licensee must report these variations on a regular, agreed basis, to Licensor.


 


(g)         If Licensee does
not abide by the Marketing Plan and/or fails to report to Licensor as agreed on variations pursuant to cl 5.3, Licensor may at
Licensor's election (without any claim from Licensee) by notice in writing to Licensee:


 


(i)        vary
the ambit of the Territory;


 


(ii)       vary
the appointment of Licensee from exclusive;


 


(iii)       should
the Licensed Product comprise two or more items, delete any item; or


 


(iv)       perform
a combination of any of the variations referred to in cll 5.3(g)(i) to 5.3(g)(iii) inclusive.


 


(h)         Licensee must comply
with all laws of the Territory when performing its obligations under this agreement and Licensee must ensure that the promotional
materials comply with all laws of the Territory.


 



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5.4               Promotional
Materials


 


(a)       Licensee, or in
the context of this cl 5.4, Licensee's marketing contractor, is responsible for developing all promotional material in relation
to the Licensed Product.


 


(b)       Licensee must obtain
the written approval of Licensor before using any promotional material, which approval will not be unreasonably withheld.


 


(c)       Licensee must ensure
that none of the promotional material created by Licensee contains any information concerning the Licensed Product which is in
any way false, misleading or contrary to law.


 


(d)       Prior to issuance
of patents relating to the Technology, Licensee agrees to mark Licensed Products made, sold or otherwise disposed of by it under
the license granted herein with the words "Patent Pending", and following the issuance of one or more patents with the
patent number of the Licensed Patents


 


5.5               Termination


 


(a)        The appointment
to market the Licensed Product will commence on the Commencement Date and will continue for the Term unless terminated in accordance
with cl Section 1.01(b).


 


(b)        The appointment
to market the Licensed Product may only be terminated in the following way:


 


(i)       
By Licensor if Licensee cannot market the Licensed Product and/or cannot sub-contract the marketing of the Licensed Product to
the satisfaction of both Parties.


 



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6               Distribution
of the Product


 


6.1               Appointment
to Distribute


 


(a)       Licensor appoints
and licenses Licensee, or in the context of this cl 6, Licensee's distributor contractor, from the Commencement Date to distribute,
supply, sell and exploit the Licensed Product during the Term on the terms and conditions of this agreement.


 


(b)       Licensee must not
make any representations in relation to the Licensed Product which are in any way false, misleading or contrary to law.


 


6.2               Improvements


 


(a)       If Licensor makes
or acquires any Improvements to the Licensed Product and Licensor elects to make the Improvements available in the Market in the
Territory and to Licensee, Licensor will notify Licensee in writing of the Improvements and such Improvements will form part of
the Licensed Product and Licensee will be entitled to deal with such Improvements on the terms and conditions of this agreement.


 


(b)       If Licensee is
notified of a Improvement to the Licensed Product, Licensee must ensure that from the date of the notification Licensee only distributes,
supplies, sells or exploits Licensed Products which include the Improvements.


 


(c)       Notwithstanding
cl 6.2(b), Licensee is entitled to fill any orders for Licensed Product already taken with Licensed Product in stock which does
not include the Improvements and Licensee is entitled to fill any new orders with existing stock of the Licensed Product.


 


(d)       If Licensee makes
or acquires any modification or improvement to the Licensed Product, Licensee must immediately notify Licensor and any Intellectual
Property Rights in the Improvements are owned by Licensee, but Licensee will allow Licensor to work on the Improvements for the
purposes of research only.


 


(e)       Licensee consents
(and Licensee must procure the voluntary consent in writing of each natural person who is an author of any part of any Improvements
referred to in cl 6.2(d)) in favour of Licensor, Licensor's licensees, assigns and successors in title and any person authorized
by Licensor to the performance of any act or omission which may otherwise infringe any moral rights of any author of such Improvements.


 


6.3               New
Products


 


If Licensor chooses to make a new product available to Licensee:


 


(a)       Licensor must notify
Licensee in writing of the new product;


 


(b)       the new product
will form part of the definition of the Licensed Product and the terms and conditions of this agreement will apply to the new Licensed
product; and


 


(c)       Licensor will prepare
and supply to Licensee any Documentation in respect of the new product.


 



    	22



    	 



    

 


6.4               Transport
and Storage


 


(a)        Licensee is responsible
for any collection and transportation of the Licensed Product or Product.


 


(b)        Licensee is responsible
for the storage of the Licensed Product or Product.


 


6.5               Promotion
of Product


 


Licensee must during the Term:


 


(a)        use all reasonable
endeavours to promote the Licensed Product in the Market including attendances at trade fairs and exhibitions;


 


(b)        use reasonable
endeavours to ensure that each item of the Licensed Product and each item of Documentation and each accessory in the possession
or control of Licensee retains all trade marks and copyright notices as are furnished to Licensee by Licensor from time to time;
and


 


(c)        maintain such records
of transactions, enquiries and complaints relating to the Product as are specified in the schedule.


 


6.6               Quality
Control


 


(a)        It is the responsibility
of Licensee to ensure that each Licensed Product distributed by Licensee is of suitable quality and that there are no defects in
the Licensed Product caused by the shipping, storage or any other cause.


 


(b)        Licensor may inspect
the premises of Licensee and any location at which Licensee stores any of the Licensed Product from time to time on reasonable
notice to inspect the quality of the Licensed Product.


 


(c)        If any of the Licensed
Product is not of a quality satisfactory to Licensee or to Licensor, Licensee must replace the faulty Licensed Product and Licensee
must not distribute any faulty Licensed Product.


 


6.7               Compliance
with local laws


 


(a)        Licensee must comply
with all laws of any jurisdiction through which Licensee is transporting the Licensed Product or in which Licensee is storing the
Licensed Product.


 


(b)        If the Licensed
Product or the packaging of the Licensed Product or any accessory supplied with the Licensed Product has any feature which does
not comply with any law of any jurisdiction, Licensee must notify Licensor as soon as Licensee becomes aware of such law. The Parties
will then work together to identify and implement any changes necessary to the Licensed Product, its packaging or any accessories
to ensure that such items comply with all applicable laws.


 


6.8               Term
and Termination


 


(a)        The
appointment to distribute commences on the Commencement Date and continues for the Term unless terminated in accordance with clause
6.8(b).


 


(b)        This
agreement may be terminated in the following way:


 


(i)       by Licensor if
Licensee cannot distribute the Licensed Product and cannot sub-contract the distribution of the Licensed Product to the satisfaction
of both Parties.


 



    	23



    	 



    

 


7               Project
Management


 


7.1               Personnel


 


The following provisions in relation to the Licensee Personnel
apply:


 


(a)        Licensee must provide
the services under this agreement by the Licensee Personnel.


 


(b)        Licensee must ensure
that the Licensee Personnel are suitably qualified for the performance of the duties allotted to them pursuant to this agreement
and that they will not be required by Licensee for other duties in a manner that will adversely impact on Licensee meeting its
obligations under this agreement.


 


(c)        Licensee must provide
Licensor, upon request in writing by Licensor, with full information as to the qualifications and relevant experience of any of
the Licensee Personnel.


 


(d)        Licensee must:


 


(i)       ensure
that:


 


(A)       all the Licensee Personnel
are available as required for involvement in the bringing of the Technology to Practical Application at all relevant times; and


 


(B)        each of the Licensee
Personnel dedicates sufficient time and effort to performing Licensee's obligations under this agreement until all such obligations
are fulfilled; and


 


(C)        only use such of
the Licensee Personnel as are approved in writing by Licensor, which approval will not be unreasonably withheld.


 


(e)        If any of the Licensee
Personnel become unavailable or refuse to provide services to Licensor, a replacement person or persons may be appointed by Licensee
subject to approval within one (1) calendar week by Licensor, which approval will not be unreasonably withheld. Licensee will be
responsible for any additional expense or cost to Licensor of any delays caused by the non- availability or refusal to provide
services of any of the Licensee Personnel.


 


(f)        If Licensor so
requests, Licensee must replace any of the Licensee Personnel so long as Licensor's request is not capricious and is made in the
reasonable anticipation of improved or more efficient service by Licensee.


 


(g)        Licensee must not
replace any of the Licensee Personnel without the prior written agreement of Licensor, which agreement will not unreasonably be
withheld.


 


(h)        Without limiting
any other provision of this agreement, Licensee must:


 


(i)        use an
adequate number of personnel to perform its obligations under this agreement;


 


(ii)       provide
experienced and skilled personnel with suitable qualifications to perform Licensee's obligations under this agreement; and


 


(iii)      ensure
that all of the personnel used by Licensee comply with:


 



    	24



    	 



    

 


(A)       any standards and
other protocols, codes of conduct or procedures as agreed between the Parties;


 


(B)       all applicable
obligations of Licensee under this agreement; and


 


(C)       all applicable
laws of any jurisdiction.


 


7.2               Management


 


The following provisions in relation to the Licensee Manager
apply:


 


(a)         Licensee must appoint
the Licensee Manager. The Licensee Manager must at all times:


 


(i)       be an
officer, employee or contractor of Licensee; and


 


(ii)      be able
to bind Licensee to variations or amendments to this agreement.


 


(b)         Licensee must ensure
that the Licensee Manager:


 


(i)       is fully
acquainted with the Technology and the requirements of Licensor;


 


(ii)      accepts
responsibility, on behalf of Licensee, for preparing all necessary reports pursuant to this agreement;


 


(iii)     notifies
Licensor and proposes to Licensor an appropriate solution if the Licensee Manager becomes aware at any stage that the development
of the process of bringing the Technology to Practical Application:


 


(A)       may produce inconsistent
or unintended consequences for Licensor;


 


(B)        is or may breach
the Intellectual Property Rights of a third party; or


 


(C)        is unlikely to
be completed in a cost effective or timely manner; and


 


(D)        ensures, on behalf
of Licensee, that the development of the Product complies with requirements of Licensor.


 


(c)         Licensee may replace
any person nominated as the Licensee Manager with the prior written approval of Licensor, which approval will not be unreasonably
withheld.


 


(d)         Licensee must immediately
notify Licensor in writing if:


 


(i)       the Licensee
Manager ceases to be an employee or contractor of Licensee;


 


(ii)      the
Licensee Manager dies or becomes physically or mentally incapacitated; or


 


(iii)     Licensee
ceases to be entitled to the services of the Licensee Manager or ceases to be able to make the services of the Licensee Manager
available to manage the obligations of Licensee under this agreement.


 


(e)         The
Licensee Manager must give to Licensor [weekly/monthly] reports in writing setting out:


 


(i)       the present
status of the development of the Product;


 



    	25



    	 



    

 


(ii)       details
of progress of the development of the Product against the Milestones and any anticipated variations to the timetable for the achievement
of the Milestones; and


 


(iii)       full
information in relation to all issues affecting the development of the Product or otherwise required by Licensor.


 


7.3               Project
Meetings


 


The following provisions in relation to Project Meetings apply:


 


(a)        The development
will be supervised by a team (Project Team) in which:


 


(i)       Licensee
will be represented by the Licensee Manager; and


 


(ii)      Licensor
will be represented by the Licensor Manager.


 


(b)        The Project Team
will:


 


(i)       discuss
the progress of the development of the Product;


 


(ii)      review reports
prepared by the Licensee Manager; and


 


(iii)     discuss proposed
modifications of or extensions to the development of the Product including, without limitation, to the timetable for the achievement
of the Milestones.


 


(c)        The Project Team
will meet monthly, whether face-to-face or by telelink, video-conference or otherwise as specified by Licensor.


 


(d)        The quorum for
meetings of the Project Team is one representative of Licensor and the Licensee Manager.


 


(e)        All decisions of
the Project Team must be unanimous but no decision of the Project Team can be binding on Licensor without Licensor agreeing to
such decision in a manner legally binding on Licensor.


 


(f)        Minutes will be
taken at all Project Meetings by Licensor and a written copy of the minutes will be delivered to the Licensee Manager at least
one (1) Business Day prior to the date on which the next Project Meeting is to be held.


 


(g)        Each Project Meeting
will follow the agenda, headings for which are set out in the schedule.


 


7.4               Milestone
testing and sign-off


 


(a)        When Licensee reaches
each Milestone, Licensee must demonstrate and/ or report [as appropriate] the relevant Milestone to Licensor.


 


(b)        If Licensor is
satisfied that the Milestone has been reached, Licensor will confirm that the Milestone has been reached by notice in writing to
Licensee.


 


(c)        If Licensor is
not satisfied that the Milestone has been reached, Licensor will notify Licensee in writing of the reasons for Licensor's decision.
The Parties will then discuss any necessary revisions to the timetable to enable Licensee to meet Licensor's requirements and achieve
the Milestone(s).


 


7.5               Sub-Contractors


 


(a)        Licensee must not
enter into any sub-contract (after the commencement date of this agreement) under or in respect of any aspects of this agreement
unless it obtains the prior written consent of Licensor, which consent will not be unreasonably withheld provided any sub-contract
includes a non-disclosure agreement in terms satisfactory to the Licensor.


 



    	26



    	 



    

 


(b)       The Parties agree
that Licensee remains primarily liable for the performance of all its obligations under this agreement even if Licensee appoints
a sub-contractor.


 


7.6               Publications
and Presentations


 


Licensee acknowledges Licensor's rights to make scientific or
academic publications or presentations involving the Technology in accordance with the following terms and conditions:


 


(a)       the publication
or presentation of scientific results is important to Licensor;


 


(b)       Licensor will only
make a publication or presentation with the prior written approval of Licensee which approval may be withheld at the sole discretion
ofLicensee;


 


(c)       the Parties acknowledge
that it would be reasonable for Licensee to withhold its consent if the proposed publication or presentation would, or would be
likely to, materially diminish the commercial value of the Technology or any part of the Technology;


 


(d)       Licensee must respond
in writing to a request for approval of a proposed publication or presentation within one (1) calendar month of the request being
made and if Licensee does not reject the request by notice in writing within that calendar month, Licensee consent to the proposed
publication or presentation will be deemed to be given; and


 


(e)       if Licensee does
not consent to a proposed publication or presentation, the request for publication or presentation may not be resubmitted to Licensee
earlier than six (6) calendar months following the date of the last request, unless Licensee agrees in writing to consider the
request within that six (6) calendar month period.


 


7.7               Records


 


(a)       Licensee must keep
records relating to the manufacture of the Licensed Product or Product including internal reports relating to quality control.


 


(b)       Licensee must permit
Licensor to:


 


(i)       have
access to Licensee's premises;


 


(ii)      inspect
all records relating to the manufacture of the Licensed Product or Product and any other dealing Licensee has with the Licensed
Product; and


 


(iii)     inspect
the manner in which Licensee protects Licensor's Confidential Information.


 


(c)       Licensor must give
reasonable notice of its intention to attend Licensee's premises and must attend within normal business hours.


 


7.8               License
Approvals


 


Licensee is responsible for obtaining any
approvals, authorizations and accreditations necessary or desirable to enable Licensee to exploit the Technology or any Improvements.


 



    	27



    	 



    

 


8               Confidentiality
and Intellectual Property


 


8.1               Confidentiality


 


(a)        The parties acknowledge that they have previously entered
into a non- disclosure agreement and that clause 8 herein is intended to augment that previous non-disclosure agreement entered
into between the parties.


 


(b)        Licensee acknowledges that:


 


(i)       the
terms of this agreement;


 


(ii)      the
Technology;


 


(iii)     the Licensed
Product;


 


(iv)     the Improvements;
and


 


(v)      information
which comes into its possession, pursuant to or as a result of or in the performance of this agreement, whether such information
relates to the business, sales, marketing or technical operations, Intellectual Property Rights, financial position or management
of Licensor, the clientele of Licensor, a related body corporate of Licensor or otherwise, is information confidential to Licensor.


 


(b)        Licensor acknowledges
that information which comes into its possession, pursuant to or as a result of or in the performance of this agreement, whether
such information relates to the business, sales, marketing or technical operations, financial position or management of Licensee,
the clientele of Licensee, a related body corporate of Licensee or otherwise, is information confidential to Licensee.


 


(c)         Each Party undertakes
to the other Party that the first Party (receiving party) will:


 


(i)       hold,
treat and maintain the Confidential Information of the other Party (disclosing party) in full confidence, acknowledging
it to be valuable property of the disclosing party;


 


(ii)      take
all steps as may be necessary to safeguard the confidentiality of the Confidential Information of the disclosing party including
maintaining electronic security;


 


(iii)     not
directly or indirectly disclose the Confidential Information of the disclosing party to any third party without the prior written
consent of the disclosing party;


 


(iv)     use
every effort to limit the number of its directors, officers, servants and agents who have access to the Confidential Information
of the disclosing party;


 


(v)      cause
its employees, agents and any of the persons who have or are likely to have access to the Confidential Information of the disclosing
party or any of them to observe all the obligations of non-disclosure sought of the receiving party under this cl 8; and


 



    	28



    	 



    

 


(vi)     comply
with any obligations under all relevant Data Protection Laws in relation to any dealings by the receiving party with any of the
Confidential Information of the disclosing party.


 


(d)        Upon receipt of
written notice from the disclosing party:


 


(i)       the receiving
party will immediately return to the disclosing party the Confidential Information of the disclosing party, any part thereof and
all books, notes, note books, diaries, papers and all other materials containing, revealing, summarizing, commenting on or referring
to any part of the Confidential Information of the disclosing party; and


 


(ii)      the
receiving party agrees that it will not retain any of the material referred to in cl 8.1(d)(i) of this cl 8 in any form other than
as required by law or for the purposes of reasonable business records.


 


(e)        The receiving party:


 


(i)       confirms
that the sole use which the receiving party may make of the Confidential Information of the disclosing party is to use the Confidential
Information of the disclosing party in the course and for the purpose only of performing its obligations under this agreement;
and


 


(ii)      must
not use the Confidential Information of the disclosing party other than as specified in this cl 8.1(e) without the prior written
consent of the disclosing party.


 


(f)        Nothing in this
cl 8 prevents the receiving party from taking such action as is necessary for the receiving party to comply with any obligations
under any Data Protection Law or any other law.


 


(g)        A Party must, if
requested by the other Party, ensure that all of its employees, agents and sub-contractors execute a deed of confidentiality on
terms reasonably required by the other Party in relation to the non-disclosure of the Confidential Information.


 


(h)        A Party must use
its best endeavors to ensure all information and materials of the other Party in the custody of the Party for purposes connected
with this agreement will be protected at all times from unauthorized access or use by a third party, or misuse, damage or destruction
by any person.


 


(i)        The obligations
in this cl 8 do not apply to a part of the Confidential Information:


 


(i)       the
Licensee is required to disclose by any applicable law or order of any governmental agency or court competent jurisdiction;


 


(ii)      is
provided to the Licensee (without restriction as to its use or disclosure) by a third party legally entitled to possess the Confidential
Information;


 


(iii)     is
in or comes into the public domain, other than as a result of a breach by the Licensee of this cl 8;


 



    	29



    	 



    

 


(iv)     the
receiving party requests and the disclosing party agrees in writing may be disclosed provided that receiving party observes all
terms and conditions which the disclosing party requires; or


 


(v)      the receiving
party requires to use in a court of law or legal proceedings.


 


(j)         If the receiving
party is required to disclose any part of the Confidential Information of the disclosing party as referred to in cl 8.1(i)(i),
the receiving party must:


 


(i)       promptly,
and to the extent possible before the information is actually disclosed, inform the disclosing party of that fact and the precise
Confidential Information required to be disclosed; and


 


(ii)      disclose
the minimum Confidential Information required to comply with the applicable law or order, and the disclosing party may then inform
the receiving party that the disclosing party (at its cost) wishes to contest the requirement to disclose and the receiving party
must, on receiving such notice, take such action as the disclosing party may reasonably instruct the receiving party to take to
contest the requirement, provided that, in doing so, that the receiving party is fully indemnified by the disclosing party.


 


(k)         If Licensee wishes
to publish any information relating to the Technology to the scientific community, whether orally or by written publication, Licensee
must obtain Licensor's prior written consent. Licensor may withhold its consent at its sole discretion.


 


8.2               Intellectual
Property Rights in the Technology


 


(a)        Licensor grants
to Licensee a royalty free non-exclusive license to modify, alter, adapt and copy the Technology and material based upon the Technology
for development of the Licensed Product or a Product solely for the purposes of this agreement.


 


(b)        Where any of the
Intellectual Property Rights in the Technology consists of any patent rights then in the event of (and each time there is) the
lapsing, expiry or termination of any of the said patent rights, the Parties hereby agree to enter into a license in accordance
with this cl 8.2 for the remaining Intellectual Property Rights (excluding the lapsed, expired or terminated patent rights), such
license to become effective immediately on termination of the lapsed, expired or terminated patent right without requirement for
the execution of any further document.


 


(c)        The licenses granted
in cll 8.2(a) and 8.2(b) continue irrespective of the currency of any patent or design rights encompassed in the Intellectual Property
Rights in the Technology.


 


(d)        Licensee may make
such copies of the Technology as are reasonably required for operational use, backup and security provided that all such copies
are returned to Licensor in the event of termination by Licensor.


 


(e)        Licensee must:


 



    	30



    	 



    

 

 


(i)        not use the
Technology (except by prior agreement in writing with Licensor), outside the scope of this agreement and Licensee agrees not to
permit a third party to do so; and


 


(ii)       cause trade
mark, copyright and restricted rights notices found by Licensee in any of the Technology to be reproduced on all archived and back
up copies of the Technology.


 


(f)        Licensee
acknowledges that under this agreement, Licensor has granted Licensee a license to use the Technology in accordance with this cl
8.2 and that this agreement does not constitute or effect, or purport to constitute or effect, the sale or transfer of ownership
to the Developer of any Intellectual Property Rights in the Technology.


 


(g)        Licensor:


 


(i)        makes in
this agreement no warranty (other than those expressly provided in this agreement) to any person (including Licensor) in relation
to the Technology or the use of the Technology except those warranties which cannot be specifically excluded under law and Licensor
excludes all other terms, conditions, warranties, undertakings, inducements or representations, whether express or implied, or
implied under statute; and


 


(ii)       will not
be liable (other than as expressly provided in this agreement) for any loss or damage of any kind to any person (including Licensee
) caused by use of the Technology however caused or suffered and without limiting the foregoing, Licensor will not be liable to
such persons in any circumstances for economic or consequential loss.


 


(h)        To the extent
that warranties are implied under law to persons (including Licensee), then the liability of Licensor to such persons for any loss
as a result of or in relation to the supply by Licensor of the Technology, including any economic or consequential loss which may
be sustained or incurred, will be limited, at the sole discretion of Licensor, (other than as expressly provided in this agreement)
to:


 


(i)        in the case
of goods;


 


(A)        the replacement
of the goods or supply of equivalent goods;


 


(B)        the repair
of the goods;


 


(C)        the payment
of the cost of replacing the goods or of acquiring any equivalent goods; or


 


(D) the payment of the cost of having the goods repaired; and


 


(ii)       in the case
of services: (A) the supply of the services again; or


 


(B)        the payment
of the cost of having the services supplied again.


 


8.3               Intellectual
Property


 


(a)        Licensor
owns all Intellectual Property Rights in the Technology. Licensee must not, directly or indirectly, challenge, contest or deny
or assist any other person to challenge, contest or deny the validity of any Intellectual Property Rights in the Technology.


 



    	31



    	 



    

 


(b)        Licensor
grants to Licensee a license to use the Technology only to the extent necessary to manufacture the Licensed Product or Product
in accordance with this agreement.


 


(c)        If the Intellectual
Property Rights in the Technology include any patent rights then in the event of (and each time there is) the lapsing, expiry or
termination of any of the said patent rights, the Parties hereby enter into a license in accordance with this agreement for the
remaining intellectual property in the Technology (excluding the lapsed, expired or terminated patent rights), such license to
become effective immediately on termination of the lapsed, expired or terminated patent right without requirement for the execution
of any further document.


 


(d)        The
licenses granted under cll 8.3(b) and 8.3(c) continue irrespective of the currency of any patent or design rights encompassed in
the Intellectual Property Rights in the Technology.


 


8.4               Intellectual
Property Rights in Promotional Materials


 


(a)        Licensee
owns the Intellectual Property Rights in the promotional materials but hereby provides a sole license to Licensor of these Intellectual
Property Rights to be used in the promotion of the Licensed Product.


 


(b)        Licensee
may only use Licensor's trade mark in a manner and style approved by Licensor in writing and subject to this agreement in respect
of the Licensed Product in the promotional materials but for no other purpose.


 



    	32



    	 



    

 


9               Consideration


 


9.1               Payment


 


In consideration for the grant contained in clause 2, the Licensee
will pay:-


 


(a)        the License Fee in accordance with the payment method specified
in the schedule;


 


(b)        the Patent
Royalty in accordance with the procedure set out in the schedule for the Term of this agreement;


 


(b)        the Sublicense Patent Royalty in accordance with the procedure
set out in the schedule for the Term of this agreement;


 


(c)        the Milestone
Payments;


 


(d)        all the costs
of filing, prosecuting and maintaining all patents (including existing patents and patent applications) which form the Technology
within one (1) calendar month of receipt of an invoice from Licensor; however,


 


No Patent Royalty or Sublicense Patent Royalty shall be due
upon sale or disposition of Licensed Products to and between Affiliates for further sale; provided, however, that royalty payable
on the net sales shall be payable upon the final sale by the Affiliate to a non-affiliated vendee.


 


9.2               Reports


 


Licensee must provide to Licensor within one (1) calendar month
of the end of each calendar quarter, a report for such calendar quarter containing the following:


 


(a)        details
of all sales of the Product, Licensed Product, or services related to the licensed technology, made by Licensee in the calendar
quarter to which the report relates;


 


(b)        sales expectations
for the following calendar quarter;


 


(c)         details
of all enquiries received during the calendar quarter to which the report relates by Licensee from customers outside the Market
or the Territory;


 


(d)        details of any and all Improvements that have come to the
attention of Licensee during the calendar quarter to which the report relates;


 


(e)        details of
any and all potential and actual infringements of the Intellectual Property Rights in the Licensed Product that have come to the
attention of Licensee during the calendar quarter to which the report relates;


 


(f)        details of
any sales activities in relation to any products in competition with the Licensed Product that have come to the attention of Licensee
during the calendar quarter to which the report relates;


 


(g)        any market-specific
information relating to the performance of the Licensed Product which has come to the attention of Licensee during the calendar
quarter to which the report relates;


 



    	33



    	 



    

 


(h) The Licensee must permit an accountant or auditor of the
Licensor (from time to time during ordinary business hours) to inspect and verify all or any records required to be maintained
by the Licensee. The Licensee must give all assistance necessary to such accountant or auditor to carry out such inspection and
verification and permit such accountant or auditor to take copies of any such records;


 


(i) The Licensee must maintain in sufficient detail for a period
of seven (7) years, in a manner approved by the Licensor, separate and accurate records and accounts of:


 


(a)        the manufacture
and sale of Licensed Products and Products;


 


(b)        the Net Sales
Price at which the Licensed Products and Products are sold;


 


(c)        The Net Sales
Price for services rendered by the Licensee relating to the Licensed Technology; and


 


(d)        any other
information reasonably required by the Licensor; and


 


(j)        The Licensee
must take all steps necessary to ensure the reporting obligations set out in this clause 9.2 also extend to any sub-licensee granted
a sublicense pursuant to clause 2.5 of this agreement.


 


9.3               Method
of Payment


 


		(a)	All payments due under clause 9.1 shall be paid in U.S.
Dollars and shall be made by wire transfer to the Licensor’s nominated bank account, or by check sent to the Licensor. The
Licensee must comply with the method of payment specified by the Licensor from time to time and hereby waives any entitlement
to vary the method of payment unilaterally; and



 


		(b)	All payments due under clause 9.1 that become payable,
and are not paid within 30 days from the date they are due, shall bear interest at a rate of 10% per annum. Nothing in this provision
is intended to waive any right the Licensor has as a result of the Licensee’s failure to make timely payments as specified
in this agreement.



 


10               Warranties
and Indemnities


 


10.1               General
Warranties


 


(a)        Licensee
has the legal right and power to enter into this agreement and to complete the transactions contemplated by this agreement;


 


(b)        Licensee
has made full disclosure to Licensor of all information within the reasonable and actual knowledge of Licensee which would be material
to Licensor;


 


(c)        the information
given by or on behalf of Licensee to Licensor with respect to the Licensed Product is true, complete and accurate in all respects
and none of that information is misleading, whether by inclusion of misleading information or omission of material information
or both;


 



    	34



    	 



    

 


(d)       Licensee
is skilled in the activities contemplated by this agreement and is able to perform its obligations under this agreement;


 


(e)       the
Licensee will act in good faith and take no steps to defeat the intent of this agreement nor take any steps calculated to unfairly
minimize royalty payments due to the Licensor pursuant to this agreement;


 


(f)        Licensee shall use its best efforts to commercialize the
Technology as soon as possible; thereafter, until the expiration of the Term of this Agreement, and Licensee shall keep
Licensed Technology reasonably available to the public and actively promoted in commerce.


 


10.2               Marketing
Warranties


 


(a)        Licensee
warrants to Licensor:


 


(i)        the promotional
material will be original and created by Licensee;


 


(ii)       the promotional
material:


 


(A)        is not in any way false, misleading or contrary to law;


 


(B)        does not
infringe the rights (including, without limitation, any Intellectual Property Rights) of any person;


 


(C)        is not obscene,
offensive, upsetting, defamatory, personally offensive or in any way unsuitable for a person under the age of 18; and


 


(D)        does not comprise, and cannot be used for, any purpose or
activity of an illegal, fraudulent or defamatory nature.


 


10.3               Distribution
Warranties


 


(a)        Licensee
warrants to Licensor that:


 


(i)        the Licensed
Product will be able to be used for the purpose for which it is intended;


 


(ii)       the Licensed
Product delivered will be free from defects and errors;


 


(iii)      any material
incorporated into the Licensed Product by Licensee does not infringe the rights (including, without limitation, any Intellectual
Property Rights) of any person; and


 


(iv)      the Licensed
Product will be of merchantable quality and of a standard (including that of safety) which consumers of the Licensed Product are
entitled to expect.


 


10.4               Indemnities


 


(a)        Licensee
indemnifies Licensor and Licensee agrees to keep Licensor indemnified against any and all claims, demands, losses, damages and
costs (including third party claims) that Licensor incurs or may incur as a result of or arising out of:


 



    	35



    	 



    

 


(i)        a breach
by Licensee (or any sub-contractor, agent or employee of Licensee) of any of Licensee's obligations or warranties under this agreement;


 


(ii)        any act
or default or omission or wilful misconduct or negligence of Licensee (or any sub-contractor, agent or employee of Licensee);


 


(b)        The rights
of Licensor under cl 10.2 are without prejudice to any other right that Licensor may have arising out of:


 


(i)        any act or
default or omission or wilful misconduct or negligence of Licensee (or any sub-contractor, agent or employee of Licensee);


 


(ii)       any
breach of this agreement; or


 


(iii)        any defect
in either the services provided to Licensor under this agreement or the Product.


 


(c)        Without limiting
the generality of cll 10.2 and 10.4(b) if it is determined by an independent tribunal of fact or law, or if it is agreed between
the parties that an infringement of any Intellectual Property Rights of any person has occurred or that the Licensed Product are
defective or inadequate, on grounds in any way related to any of the Licensed Product or the performance by Licensee of its obligations
under this agreement, Licensee will, at Licensee own expense:


 


(i)        modify or
replace the Licensed Product so that such infringement, defect or inadequacy is removed; or


 


(ii)       procure
for Licensor the right to continue enjoying the benefit of this agreement and the use of the whole of the Licensed Product.


 


10.5               Limitation
of Liability


 


(a)        Licensor:


 


(i)        makes in
this agreement no warranty (other than those expressly provided in this agreement) to any person (including Licensee) in relation
to the Technology or the use of the Technology except those warranties which cannot be specifically excluded under law and Licensor
excludes all other terms, conditions, warranties, undertakings, inducements or representations, whether express or implied or implied
under statute; and


 


(ii)       will not
be liable (other than as expressly provided in this agreement) for any loss or damage of any kind to any person (including Licensor)
caused by use of the Technology however caused or suffered and without limiting the foregoing, Licensor will not be liable to such
persons in any circumstances for economic or consequential loss.


 


(b)        To the extent
that warranties are implied under law to persons (including Licensee), then the liability of Licensor to such persons for any loss
as a result of or in relation to the supply by Licensor of the Technology, including any economic or consequential loss which may
be sustained or incurred, will be limited, at the sole discretion of Licensor, (other than as expressly provided in this agreement),
to:


 


(i)        in the case
of goods:


 



    	36



    	 



    

 


(A)        the replacement of the goods or supply of equivalent goods;


 


(B)        the repair
of the goods;


 


(C)        the payment
of the cost of replacing the goods or of acquiring any equivalent goods; or


 


(D)        the payment of the cost of having the goods repaired; and


 


(ii)        in the case
of services: (A) the supply of the services again; or


 


(B)        the payment
of the cost of having the services supplied again;


 


(c)         Without
limiting the generality of this cl 10.5, if it is determined by an independent tribunal of fact or law, or if it is agreed between
the Parties that an infringement of any Intellectual Property Rights of any person has occurred or that the Licensed Product is
defective or inadequate: on grounds in any way related to the manufacture of the Licensed Product or the performance by Licensee
of its obligations under this agreement, Licensee will, at Licensee's own expense, modify the manufacture of the Licensed Product
so that such infringement, defect or inadequacy is removed.


 


11               Termination
and Consequences


 


11.1               Termination


 


(a)        This agreement
may only be terminated in one of the following ways:


 


(i)        immediately
by either Party by notice in writing if the other Party suffers an Insolvency Event;


 


(ii)       immediately
by notice in writing by either Party to the other Party if the other Party is in default in performing or observing any of the
terms of this agreement and that default continues for a period of one (1) calendar month after written notice has been given to
the Party in default to remedy the default;


 


(iii)      by cll
3.4, 4.4, 5.5 or 6.8; or


 


(iv)      by
Licensor in the event the Licensee fails to resolve (on terms satisfactory to the Licensor) any legal proceedings commenced against
the Licensee (or its affiliates) and/or any industrial relations dispute between the Licensee (or its affiliates) and its employees.


 


11.2               Consequences
of Termination


 


(a)        On termination
of this agreement:


 


(i)        the license
to develop, market, manufacture, distribute, dispose and exploit referred to in cl. 2 along with the license to use the Technology
referred to in cl. 8.2 immediately ceases;


 


(ii)       Licensee
must immediately cease all use of the Technology;


 


(iii)      Licensee
must immediately deliver to Licensor:


 



    	37



    	 



    

 


(A)        all Licensed Products which have been created in accordance
with this agreement;


 


(B)        any incomplete
Licensed Products; and


 


(C)        any Confidential
Information of Licensor in any form, including parts thereof embodied in any other document; and


 


(iv)      Licensee
must pay to Licensor within one (1) calendar month of the date of termination, any outstanding money (on a pro-rata basis where
applicable).


 


12               General
Provisions


 


12.1               Consent


 


(a)        Unless otherwise
provided, a party may give or withhold consent:


 


(i)        in that party’s
absolute discretion;


 


(ii)       with or
without conditions;


 


(iii)      without giving reasons;


 


(iv)      when that
party chooses.


 


(b)        A party's
consent is valid only if it is in writing and signed by that party or its authorized representative.


 


12.2               Dispute
resolution


 


(a)        If a dispute
arises in connection with this agreement, a disputant may give the other disputant a notice specifying the dispute.


 


(b)        Within 5
Business Days after the notice is given, the disputants (each represented by its chief executive officer or other person authorised
by the disputant to bind it in connection with the dispute) must confer to resolve the dispute or to decide the method of resolving
the dispute.


 


(c)        Unless the
disputants otherwise agree, the dispute must be referred to mediation if not resolved within 15 Business Days after the notice
is given.


 


(d)        The disputants
must appoint a mediator within 20 Business Days after the notice is given. If they fail to agree, the mediator must be nominated
by the then current President of the Law Society of Queensland or nominee. The mediation must be conducted in Queensland, Australia
in accordance with the mediation guidelines of the Australian Commercial Disputes Centre or other mediation service.


 


(e)        The mediator
assists in negotiating a resolution of the dispute. The mediator may not make a decision binding on the disputants, unless the
disputants have so agreed in writing.


 


(f)        The mediation
ends if the dispute is not resolved within 20 Business Days after the mediator's appointment.


 


(g)        Each disputant
must keep confidential:


 


(i)        any information
or documents disclosed in the course of the mediation;


 


(ii)       any discussions
between the disputants in the course of the mediation.


 


These may be used only to resolve the dispute.


 



    	38



    	 



    
 


(h)        Unless disclosure
is required by law:


 


(i)        each
disputant must keep confidential all information about the existence, conduct, status or outcomes of the mediation and the terms
of any mediation settlement agreement;


 


(ii)       this information
and these terms may be published or announced only with the consent of the disputants and in terms agreed by them in writing.


 


(i)        The dispute
resolution process does not affect any party's obligations under this agreement.


 


(j)        Neither disputant
may commence court proceedings in respect of the dispute until the mediation period ends. This does not affect a disputant's right
to seek injunctive or urgent declaratory relief.


 


(k)        Each disputant
must pay its own costs in respect of the dispute resolution process. The disputants must pay in equal shares the mediator's costs
and the costs of third party reports and enquiries requested by the mediator. This clause does not apply to costs awarded in subsequent
legal proceedings should the mediation process fail to resolve all outstanding issues.


 


12.3               Assignment


 


A party may only assign its rights or obligations under this
agreement with the written consent of the other party.


 


12.4               Amendment


 


This agreement may only be amended in writing signed by the
parties.


 


12.5               No waiver


 


(a)        A party may
only waive a breach of this agreement in writing signed by that party or its authorised representative.


 


(b)        A waiver
is limited to the instance referred to in the writing (or if no instance is referred to in the writing, to past breaches).


 


12.6               Further
action


 


(a)        Each party
must do all things necessary to carry out this agreement, including:


 


(i)        executing
documents; and


 


(ii)       ensuring
its employees and agents perform their obligations.


 


(b)        A party must
not do anything that will prevent this agreement from being carried out.


 


12.7               Entire
agreement


 


(a)        Except for
any confidential disclosure agreement executed by the parties or the Investment Agreement dated May 1, 2009 executed by the parties,
this document records the entire agreement between the parties about its subject matter;


 


(b)        The parties
exclude all terms implied by law, where possible; and


 



    	39



    	 



    

 


(c)        Neither party
has given any warranty or made any representation to the other party about the subject matter of this agreement, other than those
warranties and representations appearing in this agreement.


 


12.8               Counterparts


 


(a)        This agreement
may be executed in any number of counterparts. A counterpart may be a facsimile.


 


(b)        Together
all counterparts make up one document.


 


(c)        If this agreement
is executed in counterparts, it takes effect when each party has received the counterpart executed by each other party, or would
be deemed to have received it if a notice.


 


12.9               Notice


 


(a)        Notice must
be in writing and in English, and may be given by an authorised representative of the sender.


 


(b)        Notice may
be given to a person:


 


(i)        personally;


 


(ii)       by leaving
it at the person's address last notified;


 


(iii)      by sending
it by pre paid mail to the person's address last notified;


 


(iv)      by sending
it by facsimile to the person's facsimile number last notified and then confirming it by pre paid mail to the person's address
last notified.


 


(c)        Notice is
deemed to be received by a person:


 


(i)        when left
at the person's address;


 


(ii)       if sent
by pre paid mail, three Business Days after posting;


 


(iii)      if sent
by facsimile and confirmed by pre paid mail, at the time and on the day shown in the sender's transmission report, if it shows
that the whole notice was sent to the person's facsimile number last notified. However, if the notice is deemed to be received
on a day which is not a Business Day or after 5pm, it is deemed to be received at 9am on the next Business Day.


 


(d)        If two or
more people comprise a party, notice to one is effective notice to all.


 


12.10              Governing
law and jurisdiction


 


(a)        This agreement
is governed by the law of Queensland, Australia;


 


(b)        The parties
irrevocably submit to the jurisdiction of the courts of Queensland and the Federal Court of Australia in that jurisdiction, and
the courts of appeal from them.


 


(c)        No party
may object to the jurisdiction of any of those courts on the ground that it is an inconvenient forum or that it does not have jurisdiction.


 


12.11              GST


 


(a)        Defined terms
in this clause are defined under GST law.


 


(b)        All Payments
made pursuant to this agreement are exclusive of GST.


 


(c)        A Recipient
must pay to the Supplier any GST payable on a Taxable Supply. The Recipient must pay the GST when the Payment becomes payable or
when the Supplier issues a Tax Invoice, whichever is later.


 


(d)        If a party
(claimant) acquires a Taxable Supply for which it is entitled to reimbursement by the other party, the reimbursement amount is
reduced by the Input Tax Credit to which the claimant is entitled.


 



    	40



    	 



    

 


(e)        The Supplier
must issue an Adjustment Notice immediately it becomes aware of an Adjustment Event in respect of a Taxable Supply. Within 14 days
after the Supplier issues an Adjustment Note:


 


(i)        the Recipient
must pay the Supplier any increase in the GST Amount; 


 


(ii)       the Supplier
must pay the Recipient any decrease in the GST Amount.


 


(f)        If:


 


(i)        one party
(payer) must pay a GST Amount;


 


(ii)       a penalty,
interest or additional tax (extra liability) is imposed in respect of the GST Amount because of default of another party (defaulter);
and


 


(iii)      the payer
provides to the defaulter proof of the extra liability;


 


the defaulter must pay the amount of the extra liability to the payer within 14 days
after the payer provides that proof to the defaulter.


 


12.12           Costs


 


(a)        Licensee
must pay the costs of preparing this agreement and any document required by this agreement.


 


(b)        Licensee
must pay (within the time permitted by statute) stamp duty and other government charges in respect of this agreement and any document
required by this agreement.


 


12.13           Relationship
of the Parties


 


Nothing in this Agreement is intended or shall be deemed to
constitute a partnership, agency, employer-employee, or joint venture relationship between the Parties.


 



    	41



    	 



    

 


Schedule


 


Item 1 — Commencement Date


 


First day of June, 2012


 


Item 2 — Technology


 


(a)        Technology
means the Opposed Piston Multi-Fire engine as described in Australian Provisional Patent Number: 2012900277;


 


(b)        all written
descriptions of advancements to item 2(a) in the possession of Licensor and Licensee as at the date of this Agreement;


 


(c)        provisional
patent applications and/or patent applications to be filed based (wholly or in part) on item 2 paras (a) and/or (b) herein;


 


(d)        patents,
re-filings, divisionals, continuations or continuations in part based (wholly or in part) on the Technology specified in item 2
para (a) and/or (b) (c) all knowhow related to item 2 paras (a) and/or (b) herein that is in the possession of Licensor and Licensee
as at the date of this agreement.


 


Item 3 — Licensor Manager


 


(a)        for development
purposes, Licensor's Product Development Manager or equivalent;


 


(b)        for market
testing purposes, Licensor's Marketing Manager or Business Development Manager or equivalent;


 


(c)        for marketing
purposes, Licensor's Marketing Manager or Business Development Manager or equivalent;


 


(d)        for distribution
purposes, Licensor's Business Development Manager


 


Item 4 — Licensee Manager


 


Any person nominated by the Licensee.


 


Item 5 — Research Plan


 


To test and evaluate the technology in actual applications
and develop manufacturing and maintenance protocols for the licensed technology.


 


Item 6 — Milestones


 


As agreed from time to time between the parties.


 



    	42



    	 



    

 


Item 7 — Agenda for Project Meetings


 


As agreed from time to time between the parties.


 


Item 8 — Market


 


Any and all markets related directly or indirectly
to the use of internal combustion engines.


 


Item 9 — Licensed Product


 


Means the following product or products:


 


(i)        any internal
combustion engine based wholly or in part on the Licensed Technology; or


 


(ii)        any part
or component relating to any internal combustion engine based wholly or in part on the LicensedTechnology.


 


Item 10 — Records


 


As set out in this agreement or as agreed between
the parties.


 


Item 11 — Customer services required


 


As set out in this agreement or as agreed between
the parties.


 


Item 12 — Location


 


As agreed between the parties.


 


Item 13 — License Fee


 


Licensee Fee mean the issuance of 20 million of the common
stock of Manthey Redmond Corporation (the Licensee) to the Licensor or its nominees within 6 months from the commencement date
of this agreement.


 


Item 14 - Patent Royalty


 


At the end of each calendar quarter and payable within thirty
(30) days of the end of that calendar quarter (by telegraphic transfer, check or other means specified by the Licensor), the Licensee
will pay the Patent Royalty equal to 5% of net sales realized by the Licensee during that calendar quarter.


 



    	43



    	 



    

 


Item 15- Sublicense Patent Royalty


 


At the end of each calendar quarter and payable within thirty
(30) days of the end of that calendar quarter (by telegraphic transfer, check or other means specified by the Licensor), the Licensee
will pay:-


 


In the case of exception 1 of clause 2.5(a) of this agreement


 


		(i)	the higher of 5% of net sales realized by the sublicensee during that calendar quarter, or 5% of any license fee charged
pursuant to a sublicense agreement (or other instrument) paid by the sublicensee to the licensee for that calendar quarter; or



 


In the case of exception 2 of clause 2.5(a) of this agreement


 


		(ii)	the higher of 5% of net sales realized by the sublicensee (who has received a sublicense from a sublicensee) during
that calendar quarter, or 5% of any license fee charged pursuant to a sublicense agreement (or other instrument) paid by the sublicensee
to a sublicensee (who has granted a sublicense pursuant to exception 2 of clause 2.5(a) of this Agreement) for that calendar quarter.



 


Item 16- Territory


 


Means the geographical locations comprising of the
following (5) nation states:


United States of America


Canada


India


China


Mexico


 



    	 



    	 



    

 


Execution


Executed as an agreement 17 May 2012.


 


Executed by:


 


Manthey Redmond (Aust) Pty Ltd


as licensor pursuant to the


Corporations Act (as amended)


 


	 	 
	 	Steven Manthey-Director
	 	 
	 	 
	 	Geoffrey Redmond-Director
	 	 
	 	 
	 	Timothy Redmond-Director


 


Executed by


Manthey Redmond Corporation


as licensee


 


	 	 
	 	Steven Manthey- Director
	 	 
	 	 
	 	Geoffrey Redmond- Director
	 	 
	 	 
	 	Timothy Redmond