Document:

EX 10.29 - UCTT - Wet Equipment

	
			
	   [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	Confidential Information
	 
	Equipment Supply & Technology Licensing Contract

Equipment Supply and Technology Licensing Contract

No. US/87799546/00002

September, 29 th 2013
San Jose, California, United States
The present equipment supply and technology licensing contract (hereinafter referred to as the “Contract”) is concluded between 

Limited Liability Company Ulyanovsk Center for Technology Transfer a Russian Federation corporation doing business at 67 Krymova St., Ulyanovsk, Russia, 432071, hereinafter referred to as the "Buyer", on the one part, 

and  Intermolecular, Inc., a Delaware, USA corporation doing business at 3011 North First St., San Jose, CA 95134, USA, hereinafter referred to as the "Seller", 

and Limited liability Company “Russkie Tehnoparki” a Russian Federation corporation doing business at 1 Sirenevyi bulv., c.c. Troitsk, Moscow, Russia, 142191 hereinafter referred to as the "Customer’s Engineer", 

(the Seller and the Buyer, as well as the Project Company, as defined below, in case of transfer of the Equipment to such Company in accordance with the Contract, jointly referred to as the “Parties” and individually referred to as the “Party”)      

in accordance with the Minutes of open request for proposals No. 1/У-ЭС (the open tender for the right of concluding a contract dated September 03rd, 2013) for supply of Complex R&D equipment, consisting of two  - Combinatorial R&D Platforms:     
		
	•
	one vacuum cluster tool (AP-30) with two combinatorial PVD chambers (P-30) («Dry» equipment), 

		
	•
	one combinatorial wet process tool (F-20) including one informatics server with software (S-80) («Wet» equipment),

    
 concluded this Contract regarding Wet equipment as follows:
 
1. Subject of contract     
1.1 Seller has developed proprietary Equipment (as more fully defined in Section 1.6.11 below) and Informatics Software (as more fully defined in Section 1.6.19 below) to enable research, design, experimentation, development and commercialization in the area of and with the use of HPC Technology (as more fully defined in Section 1.6.18 below).      
1.2 Seller is in the business of selling Equipment and licensing HPC Technology.     
1.3 Buyer is engaged in the research, design, development and commercialization of materials, manufacturing processes, and technologies in the Field as more fully defined in Section 1.6.12 below.     

1.4 Buyer desires to purchase from Seller and Seller desires to sell to Buyer Equipment and associated licenses to HPC Technology and Informatics Software from Seller. 
Customer’s Engineer exercises full control for compliance by the Seller its obligations under the 

	
			
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	Confidential Information
	 
	Equipment Supply & Technology Licensing Contract

Contract. 
1.5               Annexes     
The following annexes are hereby incorporated into the Contract:      
1.5.1.           Pricing Sheet      
1.5.2.           Combinatorial R&D Platform description      
1.5.3.           Delivery Schedule      
1.5.4.           Payment Schedule      
1.5.5.           Acceptance Criteria     
1.5.6.           Seller Maintenance and Support Services     
1.5.7.           Installation and Facility Requirements     
1.5.8.           Documents at Sign-Off
1.5.9.   HPC Technology
1.5.10. Acceptance completion act.    
1.5.11. Start-up Act    

1.6               Definitions     
The following definitions are hereby incorporated into the Contract:     
1.6.1.           Acceptance Criteria shall have the meaning set forth in Annex 1.5.5.     
1.6.2.           Affiliate means a corporation, company or other entity now or hereafter, directly or indirectly, owned or controlled by, or owning or controlling, or under common control with Buyer or Seller respectively, but such corporation, company or other entity shall be deemed to be a Affiliate only so long as such ownership or control exists.     
For purposes of this definition "control" of a corporation, company or other entity shall mean -     
i.                     to have more than fifty percent (50%) of the voting rights or of the outstanding shares or securities representing the right to vote for either the election of the board of directors or a similar managing authority, or a supervisory board, or     
ii.                   if there do not exist outstanding shares or securities as may be the case in a partnership, joint venture or unincorporated association, to have more than fifty percent (50%) of the ownership interest representing the right to make decisions for such entity.     
1.6.3.           Background Technology of a Party means Intellectual Property Rights and Know-How,     
i.                     that is owned, acquired, or licensed by the Party at any time during the term of this Contract; and     
ii.                   that is not created within the scope of this Contract.
1.6.4.           Buyer Site means Buyer’s facilities located at Ulyanovsk, Russia, or a replacement location subsequently agreed to by the Parties in writing. All special requirements for Buyer Site are specified by the Parties in Annex 1.5.7.
1.6.5.           THIS SECTION INTENTIONALLY LEFT BLANK.     
1.6.6.           Confidential Information means any non-public information disclosed by one Party to the other in connection with this Contract and as further defined in Section 12.       
1.6.7.           Contract Price is defined in Section 2.
1.6.8. Customer Tool Installation Completion Signoff means the procedures to be followed by Seller at Buyer Site in order to complete installation of Equipment at Buyer Site, which procedures are outlined in the Customer Acceptance document in Annex 1.5.5. Upon successful completion of the Customer Tool Installation Completion Signoff the Parties and the Customer’s Engineer will execute the Start-up Act in accordance with Section 4.8.     
1.6.9.           Dry Equipment means the equipment described in Annex 1.5.2 of the Equipment Supply and Technology Licensing Contract for Dry Equipment to be signed by the Parties concurrently with this Contract.    
1.6.10. Effective Date means the later of the dates next to the signatures of the Parties below.     
1.6.11.        Equipment means the equipment described in Annex 1.5.2.  Equipment does not include software described in Annex 1.5.2.       
1.6.12.        Field means the field of glass coatings, photovoltaics, power electronics and displays.     

	
			
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	Equipment Supply & Technology Licensing Contract

1.6.13.        HPC Derivatives means any and all improvements, derivatives and modifications of HPC Technology developed by either Party or both Parties as a direct result of using the Combinatorial R&D Platform pursuant to the Contract.  HPC Derivatives shall not include any rights whatsoever in the Background Technology of Buyer.     
1.6.14.        HPC-Enabled Informatics Software means Informatics Software that enables Equipment to use HPC Technology.  Use of HPC-Enabled Informatics Software by Buyer requires an HPC License, in addition to a license to use the Informatics Software.     
1.6.15.        Non-HPC-Enabled Informatics Software means Informatics Software and other software that in combination operates Equipment without enabling it to use HPC Technology.      
1.6.16.        HPC Mode means the mode of using the Equipment which requires use of HPC-Enabled Informatics Software and an HPC License.     
1.6.17.        HPC License means the license as set forth in Section 17.1      
1.6.18.        HPC Technology means Intellectual Property Rights and Know-How related to techniques, methodologies, processes, test vehicles, synthetic procedures, technology, systems, or combination thereof used for the simultaneous parallel or rapid serial      
1.       design,      
2.       synthesis,      
3.       processing,      
4.       process sequencing,      
5.       process integration,      
6.       device integration,      
7.       analysis, or     
8.       characterization,      
of two (2) more compounds, compositions, mixtures, processes, or synthesis conditions, or the structures derived from such as a result of using either alone or in combination the Equipment and Informatics Software. The structure and definition of assets contained in the HPC Technology is provided in Annex 1.5.9.  If any of such assets are not patented in the territory of Russian Federation, the Buyer shall under the present Contract be deemed to have only received a license to the Know-How representing such assets. 
    
After the Seller has been granted patents, allowed in the territory of Russian Federation the Parties shall perform certain license agreements in accordance with Russian legislation providing for the rights of use of such inventions as prescribed by the present Contract.
    
If any information provided to Buyer by Seller is not Intellectual Property Rights or Know-How, then Buyer shall be deemed to have been granted the rights to use relevant design projects, scientific research results and documentation without a license.
    
The Know-How representing HPC Technology consists of methods and systems to perform combinatorial processing using Atomic Layer Deposition systems and Physical Vapor Deposition (commonly known as dry systems) and fluids based systems (commonly known as wet systems).
    
1.6.19.        Informatics Software means software in the form of machine readable, object code, and related documentation, together with any Informatics Updates, if any, that may be provided by Seller to Buyer.  Informatics Software may consist of either HPC-Enabled Informatics Software or Non-HPC-Enabled Informatics Software.       
1.6.20.        Informatics Improvements means improvements, additions, or modifications to the Informatics Software developed and released by Seller to add features, support additional Equipment or support new uses or applications of the Equipment.  Seller will periodically offer Informatics Improvements for license to Buyer.     
1.6.21.        Informatics Updates means error corrections, bug fixes or workarounds to the Informatics Software that are developed and released by Seller solely to ensure that the Informatics Software performs in accordance with the Specifications, along with any improvements to the Informatics 

	
			
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	Confidential Information
	 
	Equipment Supply & Technology Licensing Contract

Software that may be developed and release by Seller from time to time and which it makes available to customers at no charge.  Seller shall make Informatics Updates available to Buyer at no charge.  Informatics Updates do not include Informatics Improvements.     
1.6.22.        Intellectual Property Rights means allowed and enforceable on the territory of Russian Federation Statutory Rights in and to any and all of the following -     
i.                     patents and patent applications claiming any inventions or  discoveries made, developed, conceived, or reduced to practice, including all divisions, substitutions, continuations, continuation-in-part applications, and reissues, re-examinations and extensions thereof,      
ii.                   copyrights,      
iii.                  trademarks, service marks, trade names, trade dress, domain names and similar rights,      
iv.                 mask work rights, and      
v.                   Any other moral, intellectual or other proprietary rights of any kind now known or hereafter recognized in any jurisdiction in the world.     
1.6.23.        Know-how means any know-how, technology, trade secrets, information (including inventions eligible for statutory protection), software (including source code), circuitry, circuit designs, design descriptions, specifications, formulas, processes, process conditions, materials, material stacks, structures, architectures,  specifications for the procurement of parts and drawings, whether in tangible or intangible form and all other experience, drafts, ideas, concepts and business information, rights to which objects are allowed and enforceable on the territory of the Russian Federation.     
i.                     Know-How does not include Intellectual Property Rights, however Know-How shall include without limitation copyrights or intellectual property rights (other than Intellectual Property Rights) that are not Statutory Rights.     
1.6.24.        License Fees shall have the meaning as defined in Section 2.4.     
1.6.25.        Pricing Sheet means the price as set forth in Annex 1.5.1     
1.6.26.        Seller Site means Seller’s facilities located at the following address: 3011 North First Street, San Jose, CA, USA.
1.6.27.         Sign-Off means satisfaction and signing of the Acceptance Criteria and completion of the activities set forth in Section 4.13. Parties shall perform such activities upon satisfaction and signing of the Acceptance Criteria.
Sign-Off does not mean transfer of title or possession of the Equipment and provision of licenses.     
1.6.28.        Specifications means the specifications listed in Annex 1.5.2 for:     
i.                     Equipment,     
ii.                   Informatics Software.     
1.6.29.        Statutory Rights means rights that come into force in the Russian Federation by (i) application to or registration with a governmental entity, and (ii) approval of such application or registration by such entity.     
1.6.30.        Support means the maintenance and support services as described in Annex 1.5.6.     
1.6.31.        Term shall have the meaning defined in Section 15.1.       
1.6.32.        Third Party means a party other than Seller, Buyer, Customer’s Engineer or their Affiliates.     
1.6.33.        THIS SECTION INTENTIONALLY LEFT BLANK.     
1.6.34.        Wet Equipment means the Equipment.     
1.6.35.        Wet Combinatorial R&D Platform means a part of the Combinatorial R&D Platform referred to in the Preamble of the Contract, which part comprises one or more of the following items provided such items are described in the Pricing Sheet:      
i.                     Equipment;     
ii.                   HPC License;     
iii.                  Informatics Software License;      
      
2.         Contract price     
2.1               Purchase of Software means license.     

	
			
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	Confidential Information
	 
	Equipment Supply & Technology Licensing Contract

Any software provided to Buyer under this Contract is licensed, not sold, to Buyer and any reference to the “sale” or “purchase” of software shall be deemed to mean “license.”      
2.2               Purchase
Subject to the terms and conditions set forth in this Contract including but not limited to the licenses set forth in Section 17 and the payments set forth in Section 2.4 and Section 2.5, and the training referenced in Section 0, Buyer hereby agrees to purchase the Wet Combinatorial R&D Platform from Seller and Seller hereby agrees to sell the Wet Combinatorial R&D Platform to Buyer.     
2.3               The price of the Equipment and Services shall be in USD (United Stated Dollars), USD shall be the Contract currency. Payment currency is USD, payments shall be in USD.
2.4  License and Equipment Fees. Buyer shall pay Seller the fees for the HPC License, the Informatics Software License and the Equipment in accordance with the Pricing Sheet. In the event Buyer does not make the payments due to Seller when due in accordance with Annex 1.5.4, Seller shall have the right but not the obligation to terminate the licenses granted to Buyer in Sections 17.1 and 17.2.  Seller shall inform Buyer of such termination and no later than ten (10) days after receiving such notice, Buyer shall cease use of the Equipment in HPC Mode. 
2.5 Support fees
Buyer shall pay Seller the fees for the Support in accordance with the Pricing Sheet.
2.6               Pricing Sheet     
The Pricing Sheet is hereby incorporated by reference into this Contract.  Seller will invoice Buyer in accordance with the terms of the Pricing Sheet, Payment Schedule and the Contract.  The Pricing Sheet together with this Contract shall constitute the complete agreement regarding the purchase of the Wet Combinatorial R&D Platform.      
2.6.1.           Notwithstanding the foregoing, nothing contained in any invoice shall in any way modify the terms and conditions of this Contract, or add any additional terms or conditions.     
2.6.2.           The Pricing Sheet shall be subject to the terms and conditions of this Contract.  In the event of a conflict between the terms of the Pricing Sheet and the terms of this Contract, the terms of this Contract shall control.       
2.7               Upon the complete satisfaction of payment to Seller by Buyer, in accordance with Section 3 and Annex 1.5.4, Buyer ownership interest in and title to the Equipment shall be free and clear of any and all encumbrances.
2.7.1.           Except as provided in Section 17.5.1, in the event Buyer wishes to transfer ownership of the Wet Equipment to a Third Party, Buyer shall first offer the Wet Equipment for sale back to Seller at the fair market value of the Wet Equipment.  Seller shall have [***] from the date of such offer to agree to purchase the Wet Equipment.  If Seller does not exercise its right to purchase the Equipment within [***] from the date of the offer, Buyer is entitled to sell the Equipment to a Third Party. 
2.7.2. In the event of a foreclosure of Buyer’s assets by a Third Party (hereinafter “Foreclosing Party”) to which Buyer’s assets have been pledged subject to a pre-existing loan agreement between Buyer and the Foreclosing Party, Seller shall not have any first right to purchase the Wet Equipment, provided that any such sale pursuant to a foreclosure shall be limited to the sale of the hardware included in the Equipment and not any software or associated licenses.  The purchaser of the Wet Equipment pursuant to this Section 2.7.2 shall request such licenses from Seller    Upon receiving such request Seller shall grant such licenses to such purchaser at Seller’s then-prevailing standard prices for such licenses.

    
2.8. Training
Seller agrees to provide training to certain UCTT personnel in accordance with the terms of Section 2.1 of the JDP Agreement between UCTT and IMI to be signed concurrently herewith.  Said terms of said Section 2.1 are incorporated herein by reference.  For the avoidance of doubt, notwithstanding the inclusion of this Section 2.1 in this Contract and in the JDP Agreement and in any other agreement, Seller shall provide such training only once.  Seller’s satisfaction of this obligation under either one of the agreements shall be deemed to satisfy Seller’s obligation under all agreements.

	
			
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	Confidential Information
	 
	Equipment Supply & Technology Licensing Contract

At the Buyer’s request the Seller will provide additional training to the personnel pointed by the Buyer under terms and conditions agreed by the Parties separately and for an additional fee based on Seller’s then prevailing standard rates for such training. 
    
3.         Terms of Payment     
3.1               Payment Method      
All payments hereunder shall be made in U.S. dollars by Buyer and in accordance with the Payment Schedule in Annex 1.5.4.
The Buyer will make a payment under the invoice of the Seller which shall be issued upon execution of the Acceptance completion act and arrival of the Wet Equipment for customs inspection at the destination point in Ulyanovsk, the Russian Federation.     
3.2               Late payments     
All payments not paid when due shall bear simple interest at a rate of [***] per month or the highest rate allowed by law, whichever is less.     
3.3               Taxes     
Payments due to Seller are exclusive of all present and future taxes, duties, levies and other charges by any name (including any interest, penalties or additions thereto) imposed by any foreign, federal, state, local or other taxing authorities (including, without limitation, export, sales, use, excise and value-added taxes) on or with respect to the transactions or payments under this Contract.     
3.4                Records; Inspection     
3.4.1.           Buyer shall keep complete, true and accurate books of account and records on its own behalf for the purpose of determining the amounts payable under this Contract.  Such books and records shall be kept at Buyer for at least [***] following the end of the calendar quarter to which they pertain.      
3.4.2.           Such records will be open for inspection during such [***] period by an independent auditor reasonably acceptable to Buyer, solely for the purpose of verifying amounts payable to Seller hereunder.   Such inspections may be made no more than once each calendar year, at reasonable times and on reasonable notice.     
3.4.3.           Inspections conducted under this Section 3.4 shall be at the expense of Seller, unless a variation or error producing an increase exceeding [***]percent ([***]%) of the amounts payable for any period covered by the inspection is established and confirmed in the course of any such inspection, whereupon all reasonable costs relating to the inspection for such period and any unpaid amounts that are discovered will be paid promptly by Buyer. Each Party agrees to hold in confidence pursuant to Section 8 all information concerning payments and reports, and all information learned in the course of any audit or inspection, except to the extent necessary for that Party to reveal such information in order to enforce its rights under this Contract or if disclosure is required by law.     
4.         Terms and Conditions of Equipment Supply      
4.1               Seller will install the Equipment for Sign-Off at the Seller Site.  The Acceptance Criteria shall be applied in accordance with Section 4.13.     
4.2               Upon Sign-Off, the Wet Equipment will be delivered to Ulyanovsk, Russian Federation based on [***] per Incoterms 2010 and this Contract.  For the avoidance of doubt, delivery of the Wet Equipment shall be deemed to have occurred and obligations of the Seller to deliver fulfilled when the Wet Equipment arrives for customs inspection at the destination point in Ulyanovsk, the Russian Federation.  For the avoidance of doubt, [***] per Incoterms 2010 applies unless otherwise expressly stated in this Contract.     
4.3 THIS SECTION INTENTIONALLY LEFT BLANK.     
4.4 Seller shall obtain at his own risk and expense any export license or other official authorization and carry out all customs formalities necessary for the export of the Equipment.     
4.5               Buyer shall be solely responsible for receiving the Equipment and ensuring that the Equipment clears customs.      
Seller agrees to furnish Buyer with such documentation and information about the Equipment, as Buyer may reasonably request, in order to comply with Russian customs and import requirements, for entry of the equipment into Russia.

	
			
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	Equipment Supply & Technology Licensing Contract

4.6  Buyer will accept the Equipment from the transportation company at the customs inspection at the destination point in Ulyanovsk (the Russian Federation), for which purposes the Parties and the Customer’s Engineer will sign the Acceptance completion act in the form attached hereto as Annex 1.5.10, and provide for all necessary customs, certification and licensing procedures at its own risk and expense.
The Equipment then shall be delivered by the Buyer or a transportation company (to be arranged for and paid by Buyer) to the Buyer Site and unloaded from the carrier and left for unpacking and installment.
4.7 Seller will unpack, install, start-up and adjust the Equipment at Buyer Site in accordance with the Delivery Schedule in Annex 1.5.3. Notwithstanding the Delivery Schedule, Seller will take all commercially reasonable measures, which are within Seller’s reasonable control, to ensure that the Equipment is installed no later than March 31, 2014. Buyer shall have no more than [***] from the date of installation (“Review Period”) at Buyer Site to inspect the Equipment for conformity with the Specifications.  If, during such Review Period, Buyer reasonably determines that the Equipment is not in conformity with the Specifications, Buyer’s sole remedy and Seller’s sole obligation will be to re-install the Equipment to ensure such conformity.
4.8  Upon performance of all actions referred to in Section 4.7 and provided that the Equipment fully conforms with the Specifications, the Seller, the Buyer and the Customer’s Engineer will execute the Start-up Act in the form attached hereto as Annex 1.5.11.
4.9 Buyer is solely responsible for and, in accordance with Annex 1.5.7,shall prepare the Buyer Site for installation of the Wet Combinatorial R&D Platform and shall ensure that all necessary infrastructure specified in Annex 1.5.7 is available.
4.10 Notwithstanding anything to the contrary in the Contract, title and risk of loss in the Equipment will transfer to Buyer at the moment when the Wet Equipment arrives for customs inspection at the destination point in Ulyanovsk, the Russian Federation.
4.11 For shipment, the Equipment will be packaged in double bags and vacuum-sealed, put in wooden crates. Due to the sensitive nature of components, the Equipment requires shipment by air.
4.12 Seller shall unpack the Equipment at the Buyer Site. 
4.13 The Sign-Off shall include the examination of the installation at Seller Site of the Equipment and also examination of presence of necessary documents (Operation manual, certificates as described in Annex 1.5.8) in accordance with the Acceptance Criteria.  Such examination shall be conducted jointly by the Acceptance Commission which is defined as one representative of the Seller, the Buyer and Customer’s Engineer.           
      
5.         Technical documentation     
The technical documents (operation manual as listed in Annex 1.5.8, spare parts catalogue) will be delivered with the equipment in form of a CD in Russian/English. The costs of translation to Russian language are included in the total Contract Price.     
The following documents will be delivered with the equipment when it ships:     
International Consignment Note    
Proforma Invoice with translation into Russian    
Packing List    
Export Declaration    
Certificate of Origin    
    
6.         Packing, packaging and labeling     
6.1                The cost of [***] and [***] is included in the Contract Price.     
6.2               The casing and packaging shall become the Buyer’s property, once the Equipment has been supplied.      
6.3               Packaging of the Equipment shall secure its absolute safety during the transport. The Seller shall be liable to the Buyer and shall be obliged to reimburse any losses that arose because of spoilage, damage or breakage of the goods entailed by undue or low quality packaging.     

	
			
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6.4               There shall be labeling in English and in Russian on each separate package of the Equipment and it shall contain the following information:     
6.4.1.           •The Seller’s name and address;    
6.4.2.           • The Buyer’s name and address;    
6.4.3.           • The final delivery address;    
6.4.4.           • Contract Number;    
6.4.5.           • Number of the package lot, in accordance with the packing list;    
6.4.6.           • Gross and net weight;    
6.4.7.           • Packaging dimensions;    
6.4.8.           • Name of the equipment;    
6.4.9.           • Special requirements (if any).    

7.         ACCEPTANCE AND SUPPORT SERVICES     
7.1               Wet Combinatorial R&D Platform Assembly     
Seller shall complete the assembly and configuration of the Wet Combinatorial R&D Platform and make it available for Buyer’s Sign-Off at the Seller Site provided during the process of assembly and configuration, Buyer cooperates with Seller as reasonably requested by Seller.         
7.2               Buyer Acceptance     
7.2.1.           Upon completion of assembly and configuration of the Wet Combinatorial R&D Platform, Seller will provide Buyer with a written notice that the Wet Combinatorial R&D Platform is available for Sign-Off.       
7.2.2.           Seller shall demonstrate to Buyer that the Wet Combinatorial R&D Platform satisfies the acceptance criteria set forth in Annex 1.5.5 (“Acceptance Criteria”) and allow Buyer to conduct tests to ensure compliance with the Acceptance Criteria.       
7.2.3.           This demonstration and testing shall take place at the Seller Site (Buyer agrees to attend at its own expense) and shall commence no later than [***] days following the written notice from Seller to Buyer.
7.2.4.           Upon completion of said demonstration and testing, Buyer will either (i) confirm in writing that acceptance of the Wet Combinatorial R&D Platform has occurred in compliance with Section 4.1.3, and Buyer shall make the payment associated therewith as set forth in the Pricing Sheet (“Buyer Acceptance”) [***].
7.2.5. Seller will complete the Sign-Off at Seller Site and will complete the Customer Tool Installation Completion Sign-off at Buyer Site.
    
7.3               Support     
Subject to the terms and conditions set forth in this Contract including but not limited to the licenses set forth in Section 17 and the payments set forth in Sections 2.4 and 2.5, Seller agrees to provide Support to the Buyer.  Any support or services other than the Support, including services not covered by a warranty or pursuant to pre-paid maintenance, will be provided at Seller’s then-current rates (plus reasonable travel expenses and other out-of-pocket expenses, if any) pursuant to a statement of work signed by the Parties.      
8.         Warranty; Limitation of Liability     
8.1               By Seller     
Seller represents and warrants that:      
8.1.1.           It has the right and authority to enter into this Contract, and to fully perform its obligations hereunder; and      
8.1.2.           This Contract is a legal and valid obligation binding upon it and enforceable in accordance with its terms.     
8.1.3. The title to the Wet Equipment conveyed to Buyer by Seller shall be good, and the Wet Equipment shall be delivered free from any security interest or other lien or encumbrance to any Third Party    
8.1.4. The Wet Equipment is fit for the purpose of performing combinatorial processing

	
			
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8.1.5. That as of the Effective Date, to the best of the Seller’s knowledge, the Wet Equipment and Buyer’s ownership, use and possession of the Wet Equipment in the manner as instructed by and in accordance with the documentation and manuals provide herewith and appended as Annex 1.5.7 and 1.5.8 does not infringe any patent, copyright, trademark or trade secret rights of a Third Party issued prior to the Effective Date.
8.1.6 The Wet Equipment, the HPC License and the Informatics Software License provided by the Seller to the Buyer hereunder are altogether sufficient for the use of the Equipment in the HPC Mode in the Field.
8.1.7. The Seller has obtained all necessary licenses, permissions and authorizations required for the export of the Equipment and the provision of the HPC-License and Informatics Software License to the Buyer or the Project Company, as well as for providing Training on the Equipment to the personnel of the Buyer or the Project Company (as the case may be).    
    
8.2               By Buyer     
Buyer represents and warrants that:      
8.2.1.           It has the right and authority to enter into this Contract, and to fully perform its obligations hereunder; and      
8.2.2.           This Contract is a legal and valid obligation binding upon it and enforceable in accordance with its terms.      
8.3               Warranty on the hardware included in the Equipment     
Seller warrants to Buyer that for a period of [***] (“Warranty Period”) from Customer Tool Installation Completion Signoff, the hardware comprising the Equipment (“Hardware”) will be free from defects in materials and workmanship and shall conform in all material respects to its specifications.       
If, during the Warranty Period, the Hardware does not meet the warranty specified above, Seller shall, at its option, repair or replace at no cost to Buyer any defective or nonconforming component of the Hardware in accordance with Annex 1.5.6. The foregoing represents Buyer’s sole remedy for breach of the warranty on the Hardware.  The warranty set forth in this section shall apply only to the Seller supplied components of the Hardware and will specifically excludes consumables and any components to be provided by Buyer.       
8.4               Warranty on the software included in the Equipment     
Seller will warrant to Buyer that for a period of [***] (“Warranty Period”) from Customer Tool Installation Completion Signoff, the software included in the Equipment (“Software”) will conform in all material aspects to its specifications.  Seller will correct any nonconformities reported to Seller in writing or in electronic form during the Warranty Period in accordance with Annex 1.5.6.  The foregoing represents Buyer’s sole remedy for breach of the warranty for the Software.     
8.5               Exclusions     
The warranties and remedies set forth in Sections 8.3 and 8.4 will be void as to the following:     
8.5.1.           any Hardware or Software that has been damaged, modified, or altered (other than by Seller or approved by Seller)      
8.5.2.           any Hardware or Software that has been subjected to physical, electrical or other environmental abuse or misuse, including improper storage or conditions not in accordance with Seller’s specifications,      
8.5.3.            any damage or non-conformities, in whole or in part, arising from use of the Hardware or Software with any other hardware, software, firmware, devices, or other products not provided by Seller or chemicals not recommended or approved for use by Seller.     
8.6               Disclaimer     
Except as provided above for the Hardware and the Software, Seller does not otherwise warrant the Equipment and does not warrant that operation of the Equipment will be uninterrupted or error free.       
Seller specifically disclaims any representation, warranty or guarantee that the use of the Hardware or Software, will be successful, in whole or in part.  It is understood that the failure of Buyer to successfully develop or commercialize technology shall not constitute a breach of any representation or warranty or other obligation under this Contract. Except as otherwise expressly set forth above, 

	
			
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seller makes no representations and extends no warranties or conditions of any kind, either express or implied with respect to any information disclosed hereunder, any activities conducted hereunder or any deliverables provided hereunder, and hereby expressly disclaim any warranties of merchantability, or fitness for a particular purpose or validity of any technology, patented or unpatented, or non-infringement of the intellectual property rights of third parties.     
9.         Limitation of Liability     
9.1               To the maximum extent permitted by applicable law, and except for any breach of any confidentiality obligation under this contract, in no event shall either party or its affiliates be liable to the other party, its affiliates or to any third party claiming through or under the other party hereto, for any lost profits, lost revenue, loss of data, equipment downtime or for any special, consequential, indirect or incidental damages, however caused and under any theory of liability (including contract, strict liability, negligence or other legal or equitable theory) arising in any way out of this contract, whether or not such party has been advised of the possibility of such damages.      
9.2               Except for a breach of  a confidentiality obligation, in no event shall either party’s cumulative liability to the other under this contract exceed the amounts received by such party from the other party in the past [***] preceding the claim.     
9.2.1. The limitation of liability described above in Section 9.2 does not apply to any loss or damage to the Wet Equipment that is solely attributable to and solely caused by the gross negligence or willful act of the Seller or Seller’s personnel.  For the avoidance of doubt, if Buyer or Buyer personnel are jointly or severally responsible for such loss or damage, then Seller’s liability for such loss or damage that is attributable to Seller shall be subject to the limitation of liability described above in Section 9.2.
9.3               The Parties acknowledge and agree that the foregoing limitations of liability are an essential element of this agreement and that in their absence the terms of this agreement would be substantially different.      
10.      Force Majeure     
Neither Party shall lose any rights hereunder or be liable to the other Party for damages or losses (except for payment obligations then owing) on account of failure of performance by the defaulting Party if the failure is occasioned by war, strike, fire,  act of God, earthquake, flood, lockout, embargo, act of terrorism, governmental acts or orders, failure of suppliers, or any other reason where failure to perform is beyond the reasonable control and not caused by the negligence, intentional conduct or misconduct of the non-performing Party and such Party has exerted all reasonable efforts to avoid or remedy such force majeure; provided, however, that in no event shall a Party be required to settle any labor dispute or disturbance.

      
11.      Dispute Resolution     
11.1            All disputes between the Parties in connection with or arising out of this Contract shall first be discussed in good faith between the Parties in order to try to find an amicable solution.      
11.2            If no solution can be found to settle the dispute, then such dispute shall be finally settled by arbitration in accordance with the default rules and procedures of American Arbitration Association (“AAA”) sitting in New York City, NY, USA and conducted in English.      
11.3            Within 30 days of notice that a Party wants to submit a dispute to arbitration, the Parties shall each select one independent arbitrator and will attempt to mutually agree upon a third independent arbitrator.  Each arbitrator will have expertise in the thin film technology industry and will not be an employee, affiliate or contractor for either Party.     
11.4            If the Parties are unable to agree on the third arbitrator within fifteen (15) days, the two arbitrators shall select the third arbitrator within thirty (30) days.      
11.5            If the amount in dispute is less than [***], then the Parties shall agree upon a single arbitrator meeting the above conditions within thirty (30) days of the notice of arbitration or such arbitrator shall be chosen by AAA if the Parties cannot agree.      

	
			
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11.6            The arbitrators shall determine what discovery will be permitted consistent with the goal of limiting the costs and time for such a proceeding. The Parties and arbitrators shall use all reasonable efforts to complete any arbitration subject to this Section within six (6) months from the selection of arbitrators.      
11.7            The Parties agree that any award of damages shall not include punitive, special, consequential, or indirect damages except as specifically allowed in this Contract and shall comply with the limitation of liability provisions set forth herein.      
11.8            The arbitrators’ decision shall be in a detailed writing setting forth the reasons for their decision and shall be provided concurrently to each Party.      
11.9            The arbitration award shall be final and binding on the Parties.      
11.10        Unless otherwise agreed to by the Parties, each Party shall pay one-half of the arbitration fees and expenses and shall bear all of its own expenses in connection with the arbitration.      
11.11        Notwithstanding any of the foregoing, either Party shall have the right to seek, at its own cost and expenses, preliminary and temporary injunctive relief pending resolution of the dispute via arbitration.      
11.12        The United Nations Convention on the International Sale of Goods applies unless otherwise expressly stated in this Contract.     

12.      Confidential Information     
12.1            The Parties acknowledge that they may receive information from the other Party which may be considered confidential and proprietary. The receiving Party agrees to avoid any un-authorized disclosure, dissemination, or use of such information that, if disclosed in writing, is identified and marked as confidential (or with words of similar meaning) at the time of its disclosure (or that, if disclosed verbally, is designated as confidential at the time of disclosure and is summarized and identified as confidential in a writing delivered to the receiving Party within thirty (30) days after the disclosure) or that are observed during a visit of the manufacturing facilities of one of the Parties and such information would appear to a reasonable person as confidential information ("Confidential Information").  Both parties agree that this Contract is the Confidential Information of both Parties.     
12.2            The receiving Party will use the Confidential Information solely for the purpose of performing its rights and obligations under the Contract. For the avoidance of doubt, if Buyer transfers the Wet Equipment to Project Company in accordance with Section 17.5.1, Buyer shall have the right to transfer Confidential Information to Project Company, provided that upon the completion of such transfer Buyer shall no longer have any rights to use such Confidential Information.     
12.3            The receiving Party will not disclose Confidential Information to a Third Party without the prior written consent of the disclosing Party. The receiving Party will protect such information from un-authorized disclosure, use or dissemination with at least the same degree of care as the receiving Party exercises to protect its own information of similar type and importance, but in no event less than reasonable care.   Notwithstanding the foregoing, the receiving Party may disclose the Confidential Information to its authorized representatives (e.g. directors, employees, officers, professional advisors and agents)  having a need to know and who have signed confidentiality agreements or are otherwise bound by confidentiality obligations at least as restrictive as those contained herein.     
12.4            The obligations of confidentiality and protection required by this Section will survive the expiration, termination, or cancellation of this Contract for a period of five years thereafter.      
12.5            The obligation of confidentiality will not apply, or will cease to apply, to any information that: (a) was known to the receiving Party prior to its receipt of Confidential Information under this Contract; (b) is or becomes publicly available without breach of this Contract by the receiving Party; (c) is received from a Third Party without an obligation of confidentiality to the disclosing Party; or (d) is developed independently by employees of the receiving Party not having access to such information.     

	
			
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12.6            Notwithstanding anything to the contrary in this Section 8, each Party shall be permitted to lawfully disclose Confidential Information of the other Party to any governmental agency to the extent such disclosure is required by law (including but not limited to the SEC, USPTO, and pursuant to a subpoena); provided, however that before making such disclosure, the Party about to make such disclosure shall seek the highest level of protection available and give the other Party an adequate opportunity to interpose an objection or take action to assure confidential handling of such information.     

13.      Miscellaneous     
13.1            Amendment     
No change or modification in the terms hereof, in a manner not expressly provided in this Contract shall be binding unless reduced to writing and duly executed by the Parties in the same manner as the execution of this Contract.  Any attempt to so change or modify the terms of this Contract shall be considered void and of no effect.     
13.2            No Implied License     
Only the licenses granted pursuant to the express terms of this Contract shall be of any legal force or effect.  No other license rights shall be created by implication, estoppel or otherwise.  Each Party reserves all rights not expressly granted to the other Party under this Contract.     
13.3            Assignment     
13.3.1.        Neither Party shall assign or transfer this Contract either voluntarily or by operation of law, in whole or in part, without the prior written consent of the other Party.     
13.3.2.        Any attempt to assign without such consent shall be void and of no effect.     
13.3.3.        Notwithstanding the foregoing, either Party may assign this Contract with the prior written consent of the other Party (which consent will not be unreasonably withheld), to an Affiliate and the terms of the Contract shall continue in effect without modification after such assignment.      
13.4            Drafting     
In interpreting and applying the terms and provisions of this Contract, the Parties acknowledge that its lawyers reviewed and participated in the drafting and agree that no presumption shall exist or be implied against the Party that drafted such terms and provisions.       

13.5             Governing Law     
This Contract shall be governed by and construed in accordance with the laws of the State of California in the United States, without regard to its conflicts of law principles.       
13.6            Venue     
All disputes between the Parties in connection to this Contract shall be addressed in accordance with Section 11. If no solution can be found to settle the dispute, then the dispute will be submitted to a court of competent jurisdiction in the county of Santa Clara, CA, USA.      
13.7            Independent Contractors      
The relationship of the Parties is that of independent contractors. Neither Party shall be deemed to be an agent, partner, joint venturer or legal representative of the other for any purpose as a result of this Contract or the transactions contemplated thereby. Personnel supplied by either Party are not the other Party's employees or agents and such supplying Party assumes responsibility for their acts or omissions, The supplying Party shall be solely responsible for the payment of compensation of such Party's employees or agents assigned to perform services hereunder and such employees or agents shall be informed that they are not entitled to any employee benefits of the other Party.  Neither Party shall be responsible for paying worker's compensation, disability benefits, and unemployment insurance or for withholding and paying employment taxes for any employee or agent of the other Party.     
13.8            Notices     
13.8.1.        Unless otherwise agreed to by the Parties, the communications required or permitted to be given or made under this Contract shall be made in writing, via personal delivery, registered mail, 

	
			
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facsimile transmission (with written confirmation copy by registered first-class mail), addressed to the appropriate Party at the address indicated below and a copy to the receiving Party’s legal department.     
13.8.2.        All communications made pursuant to this section shall be deemed made or given on the date of such personal delivery, mailing or transmission.
13.8.3.        If to Buyer: 
Ulyanovsk Center for Technology Transfer
67 Krymova St., 
Ulyanovsk, 
Russia, 432071     
      
13.8.4.        With a copy to: 
Limited liability Company “Russkie Tehnoparki” 
1 Sirenevyi bulv., c.c. Troitsk, Moscow, 
Russia, 142191     

13.8.5.        If to Seller:      
Intermolecular Inc.     
3011 North First St.     
San Jose     
CA 95134     
      
13.8.6.        With a copy to:     
Intermolecular Inc.     
Attention: General Counsel     
3011 North First St.     
San Jose     
CA 95134     
      
      
13.8.7.        The Parties may change the name and address to which communications should be sent under this section by providing prior written notice to the other Party.      
13.9            Captions     
The captions to the several sections hereof are not part of this Contract, but are included merely for convenience of reference and shall not affect its meaning or interpretation.  As used in this Contract, the word "including" means "including without limitation”.     
13.10        Counterparts     
This Contract may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.       
13.11        Signatures by Electronic Mail or Facsimile      
The delivery by electronic mail or facsimile of the signatures of the Parties shall be deemed valid and binding as if they were originally made.       
13.12        Copies     
A scanned or photocopied version of this Contract shall be deemed to be an original and shall have the full force and effect of an original document.     
13.13        Non-waiver     
The failure of either Party at any instance to require performance of any provision hereof by the other Party shall not be deemed a waiver and thereafter shall not deprive that Party of its full right to require such performance of that provision at another instance.  Any waiver must be in writing executed by the waiving Party.      
13.14        Severability     
If any term, provision, covenant or condition of this Contract is held by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, the remainder of the terms, provisions, covenants or conditions shall remain in full force and effect and shall in no way be affected, impaired 

	
			
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or invalidated.  The Contract shall continue in full force and effect to the fullest extent permitted by law without said provision or with said provision being modified and narrowly tailored to achieve the original intent of the Parties.     
13.15        Third Party Beneficiaries     
Except as expressly provided in this Contract, there are no third party beneficiaries expressly or impliedly intended under this Contract.     
13.16        Integration     
This Contract, together with all Annexes hereto, constitutes the entire agreement and understanding of the Parties relating to the subject matter hereof and supersedes all prior negotiations and understandings between the Parties, both oral and written, regarding such subject matter.     
13.17        Representation by Legal Counsel     
Each Party hereto represents that it has been represented by legal counsel in connection with this Contract and acknowledges that it has participated in the drafting hereof. In interpreting and applying the terms and provisions of this Contract, the Parties agree that no presumption shall exist or be implied against the Party that drafted such terms and provisions.
13.18. Governing Language
This Contract has been executed by the Parties in counterpart originals, one in the English language and one in the Russian language. Notwithstanding the foregoing, the Parties agree that in the event of controversy between the Parties regarding the interpretation or application of the terms of this Contract, the English language version of the Contract will be controlling.  All communications and notices to be made or given pursuant to this Contract shall be in the English language.

    
14.      Addresses and Banking Details of the Parties      
14.1            Seller     
14.1.1.        All payments due to Seller under this Contract shall be made by bank wire transfer as follows:      
      
Domestic Wire Instructions:     
Route all wires via FEDWIRE to the following ABA number     
To:  [***]     
Routing and Transit #:  [***]     
For Credit of: Intermolecular, Inc.     
Credit Account Number:  [***]     
By Order of:  [name of sender]

International Wire Instructions:          
Instruct the paying financial institution to advise their US correspondent to pay as follows:
Pay to:      [***]
Routing & Transit:    [***]          
Swift Code:    [***]          
For Credit of:    Intermolecular, Inc.          
Final Credit Account#:    [***]          
By Order of:    [Name of Sender]
 
15.      Term and Termination     
15.1            Term     

	
			
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This Contract shall be effective as of the Effective Date.  The term of this Contract shall commence on the Effective Date, and, unless terminated earlier as provided in this Section15.1, shall continue in full force and effect until the termination of all HPC Licenses and HPC-Enabled Informatics Software Licenses granted under this Contract (the "Term").        
15.2            Termination for Breach     
Either Party may terminate this Contract if the other Party has materially breached or defaulted in the performance of any of its material obligations, and such default has continued for ninety (90) calendar days after written notice was provided to the breaching Party by the non-breaching Party.      
Termination will be effective at the end of the ninety (90) day period unless the breach has been cured before the expiration of the ninety (90) day period.     
15.3             Effect of Termination     
15.3.1.        Accrued Rights and Obligations     
Termination of this Contract for any reason shall not release either Party from any liability or obligation that, at the time of termination, has already accrued to the other Party or that is attributable to a period prior to termination, nor shall it preclude either Party from pursuing any rights and remedies it may have at law or in equity with respect to any breach of this Contract.      
15.3.2.        Termination of Licenses      
All licenses granted under the Contract (including the HPC Licenses and HPC-Enabled Informatics Software Licenses) shall terminate upon termination of the Contract. For the avoidance of doubt, upon termination, Buyer shall have no right to use the Wet Combinatorial R&D Platform in HPC Mode. However, Buyer shall continue to have the right to use the Wet Combinatorial R&D Platform in non-HPC Mode.     
15.4            Survival     
Sections 1, 2, 4, 7, 8, 9, 10, 11, 12 and 13 shall survive the expiration or termination of this Contract for any reason.      

16.      Ownership OF Intellectual Property Rights and Know-How     
16.1            HPC Technology     
16.1.1.         Seller shall own all right, title, and interest in and to the HPC Technology and HPC Derivatives.      
16.1.2.        Buyer hereby agrees to assign to Seller, all of Buyer’s right, title and interest in and to any HPC Technology and  PC Technology and  HPC Derivatives that are developed during the term of this Contract.      
16.1.3.        All Intellectual Property Rights and Know-How rights arising out of the sole activities of Buyer’s personnel conducted for Buyer’s customers or for Buyer’s internal development programs with the use of Wet Combinatorial R&D Platform shall be owned by Buyer.      
16.1.4.        All Intellectual Property Rights and Know-How rights arising out of the sole activities of Seller’s personnel conducted for Seller’s customers or for Seller’s internal development programs with the use of Wet Combinatorial R&D Platform shall be owned by Seller.      
16.1.5.        All Intellectual Property Rights and Know-How rights arising out of the joint activities of Seller’s personnel and Buyer’s personnel with the use of Wet Combinatorial R&D Platform shall be jointly owned by Buyer and Seller.      
      
17.      LICENSES     
17.1            HPC License     
Subject to the terms and conditions of this Contract including the payments in Sections 2.4 and 2.5, Seller hereby grants to Buyer a non-exclusive, non-transferable, license, under Seller’s rights in HPC Technology (without the right to sublicense) to use the Equipment solely for the purpose of developing and commercializing materials in the Field.      
17.2            License Grant for Informatics Software      
17.2.1.        Subject to the terms and conditions of this Contract including the payments in Sections 2.4 and 2.5, Seller hereby grants to Buyer a non-exclusive, non-transferable, license, under Seller’s 

	
			
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rights in Informatics Software (without the right to sublicense) to use the HPC-Enabled Informatics Software with the Equipment.  The aforementioned license (hereinafter “HPC-Enabled Informatics Software License”) shall only be for the sole purpose of developing and commercializing materials and products incorporating such materials, both in the Field.      
17.2.2.        Buyer shall have no right to use HPC Technology under this Contract unless it purchases HPC-Enabled Informatics Software and purchases an HPC License.      
17.2.3.        Further, Buyer’s license to use HPC Technology shall only be for operation of the Equipment for which it has purchased HPC-Enabled Informatics Software, and only for the license term for such software and the HPC License.       
17.3            Term of License     
The term of the HPC License and the Informatics Software license granted by Seller to Buyer shall be for a period of 2 years starting from Customer Tool Installation Completion Signoff.  Subject to Buyer’s payment of the renewal fees in accordance with the payment terms of this Contract (including Annex 1.5.6), the term of the HPC License shall automatically renew for the 12-month for which the fees are paid.      
17.4            Limited scope of license for use of Third Parties     
The scope of the HPC License and the Informatics Software license granted by Seller to Buyer hereunder does not include the right to use the Wet Combinatorial R&D Platform on behalf of or for the benefit of Third Parties, except where the intended purpose of such activities is the qualification or sale by Buyer or one or more of its partners of a resulting materials and products incorporating such materials, both in the Field.     
17.5            No Transfer to or use by Third Party of Equipment in HPC Mode     
Except as stated in Section 17.5.1 below, Buyer agrees not to sell, lease, or otherwise dispose of (“Transfer”) the Equipment sold hereunder, or allow access to any Third Party to use the Equipment in HPC Mode (“Access”) without explicit written approval by Seller, which Seller may grant in its sole discretion and subject to Seller entering into a license agreement, if necessary under the circumstances, with such Third Party.  Buyer can Transfer the Equipment for [***] and agrees to inform any such Third Party purchaser that the Equipment cannot be used to perform HPC Technology without appropriate licenses from Seller.

17.5.1 Buyer shall have the right to Transfer the Equipment sold hereunder to [***], a company [***] and hereinafter referred to as Project Company provided Project Company, in addition to Buyer, agrees to assume all of Buyer’s obligations related to the Equipment except for the obligation to pay for the Equipment, and provided, pursuant to such Transfer, Buyer no longer has any rights in such Equipment.  For the avoidance of doubt, at no time shall both Buyer and Project Company have simultaneous ownership, use or possession of the Equipment.  In the event of such transfer, 

i. Project Company shall[***] acquire Buyer’s rights (including all associated licenses) to use the Equipment in HPC Mode and to use HPC-Enabled Informatics Software and HPC Technology granted to Buyer by Seller under this Contract;
    
ii. Seller shall fulfill all of Seller’s obligations related to the Equipment (such as Installation, start-up and adjustment, Training, warranty, maintenance and support obligations etc.) for Project Company [***], provided such obligations have not been fulfilled by Seller for Buyer;    

iii. Buyer remains a Party to be charged under this Contract.    

17.6            Software is licensed and not owned     
Buyer shall not be an owner of any copies of the Informatics Software or any documentation delivered to Buyer, but Buyer is licensed pursuant to this Contract to use any of the Informatics Software and documentation specified in Pricing Sheet.      
17.7            Informatics Software is owned by Seller     
Buyer acknowledges  that the features and the graphical user interface of the Informatics Software (“User Interface”), including, without limitation, icons, menus and screen designs, screen layouts, 

	
			
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and command and screen sequence, are the Confidential Information of Seller or its licensors, and are subject to the terms and conditions of this Contract with regards to Confidentiality .  Buyer agrees that it will not create software programs incorporating the Confidential Information of the User Interface.  Nevertheless, if Buyer creates one or more data loaders for metrology and/or testing equipment that it wishes to integrate into the Wet Combinatorial R&D Platform, Seller will work with Buyer on a time and materials basis (subject to the mutual prior written agreement of the Parties) to facilitate the use of said data loader(s) with the User Interface.  Buyer further acknowledges that Seller or its licensors have asserted copyright ownership over the User Interface.       
17.8            Buyer agrees that it will not itself, and will not through any parent, subsidiary, Affiliate, agent, or other Third Party, directly or indirectly, do any of the following:       
17.8.1.        reproduce, distribute, copy, sell, create derivative works of, lease, license, or sublicense the Informatics Software or any component of either, or any documentation delivered to it pursuant to this Contract;      
17.8.2.        use the Informatics Software in connection with any equipment other than the Equipment and test & characterization equipment used in connection with the Equipment;      
17.8.3.        attempt, or permit any Third Party, to reverse engineer, disassemble, decrypt, decompile, or otherwise  attempt to derive source code from the Informatics Software;     
17.8.4.         use any Informatics Software in connection with any time-sharing or other multi-user network or service bureau.      

17.9            Subject to payment by Buyer of the amounts set forth in the applicable Pricing Sheet and during any period in which Buyer makes the payments as set forth in Section 2.5, Seller will provide to Buyer the Support in accordance with Annex 1.5.6.  Seller will provide Informatics Updates and improvements (provided such improvements are generally made available to all other licensees)  at no additional charge.

17.10         Legend.
All copies of the Informatics Software shall include Seller’s copyright, trademarks, patent numbers, and other proprietary notices in the manner in which such notices were placed by Seller on such Informatics Software.  Further, Seller may label the Equipment with a permanent non-erasable identification label including but not limited to Seller’s name, Seller’s model number, a sequential serial number in Seller’s standard format, date of manufacture, location manufactured, and specification version to which the Equipment was manufactured.  Buyer shall not remove, obscure, or alter Seller’s copyright notices, trademarks, patent numbers, or other proprietary rights notices affixed to or contained within the Informatics Software or the Equipment.     
17.11        THIS SECTION INTENTIONALLY LEFT BLANK     

18.      Compliance with Laws.      
The Parties shall comply with all laws, rules or ordinances of the United States and any applicable state or other governmental agency while performing under this Contract.      
18.1            Compliance with Securities Laws.  Buyer agrees that certain of the information provided by Seller to Buyer hereunder may be “material, nonpublic information” for purposes of federal or state securities laws, the awareness of which prohibits Seller and its employees, contractors, representatives and agents from (i) buying or selling Seller’s securities (stock, options, etc.) (i.e., “insider trading”) and (ii) passing information to anyone who may buy or sell Seller’s securities (i.e., “tipping”), until after the information has been disclosed to the public and absorbed by the market.  Without limiting any of Buyer’s other obligations under this Contract, Buyer will comply with all federal and state securities laws prohibiting insider trading and tipping, and shall immediately notify Seller in the event of any insider trading or tipping by Buyer or its employees, contractors, representatives or agents of which it becomes aware.     
18.2            In accordance with the requirements of the Foreign Corrupt Practices Act of the United States (15 U.S.C. § 78dd-1 and 2) (“FCPA”), each Party agrees and warrants that it shall not make, offer, promise or authorize any payment, loan, gift, donation or other giving of money or things of 

	
			
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value, directly or indirectly, whether through itself, its affiliates, partners, officers, employees, agents or representatives, whether in cash or kind, and whether pursuant to a written agreement, to or for the use of any government official, any political party or official thereof or any candidate for political office, for the purpose of influencing or inducing any official act or decision in order to further the activities contemplated by this Contract, including obtaining or retaining any government approval or funding related to such activities.       
    
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by their duly authorized representatives:    
    
“Buyer”    
Ulyanovsk Center for Technology Transfer Ltd.    
Date: September 29, 2013    
Name:  /s/Andrey Redkin    
(Print): Andrey Redkin    
Title: CEO    
    
“Seller”    
Intermolecular, Inc    
Date: September 29, 2013    
Name:  /s/David E. Lazovsky    
(Print): David E. Lazovsky    
Title: President and CEO    
    
“Customer’s Engineer”    
Limited liability Company “Russkie Tehnoparki”    
Date: September 29, 2013    
Name:  /s/Konstantin B. Popov    
(Print): Konstantin B. Popov    
Title: CEO    
    

	
			
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ANNEX 1.5.1

PRICING SHEET

Table-1.
	
							
	S/N
	Product
	Manufacturer, country of origin
	Unit of measure
	Qty. in units of measure
	Unit price
	Total price

	1.
	TempusTM F-20
	Intermolecular, USA
	Unit
	[***]
	[***]
	[***]

	2.
	TempusTM S-80
	Intermolecular, USA
	Unit
	[***]
	[***]
	[***]

	3.
	HPC & Informatics License*
	Intermolecular, USA
	Year
	[***]
	[***]
	[***]

	4.
	Maintenance & Support*
	Intermolecular, USA
	Year
	[***]
	[***]
	[***]

	TOTAL
	х
	х
	Х
	[***]

* The fees for HPC & Informatics License and Maintenance & Support (“License-Support”) are included in the above price for a period of [***] from Customer Tool Installation Completion Signoff (the “Initial Term”).  Additional fees for the License/Support for the first year beyond the Initial Term (the “First Renewal Term”) shall be priced at [***] for the HPC & Informatics License fees and [***] for the Maintenance & Support fees for a combined total of [***] . The parties agree to enter into good faith discussions for pricing of the License-Support fees beyond the First Renewal Term, where such pricing shall take into account the fair market value of the License-Support fees.

	
			
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Table-2. Calculation of cost of supplied equipment considering additional payments and services	
			
	S/N
	Expense item
	Cost (indicate currency)

	1.    
	Price of product (total in table-1)
	[***]

	2.    
	Price of customs clearance of import cargo (in case if foreign equipment is offered)
	[***]

	3.    
	Price of customs clearance of export cargo
	[***]

	4.    
	Price of transport expenses of Wet Equipment ([***] per Incoterms 2010) to the customs inspection at the destination point in Ulyanovsk, the Russian Federation. (including insurance for shipment of Wet Equipment)
	[***]

	5.    
	Price of additional services, including:
	 

	5.1
	Installation, start-up and adjustment
	[***]

	5.2
	Training at Seller Site
	[***]

	 
	TOTAL (1 + 2 + 3 + 4+5)
	[***]

Payment of all taxes shall be in accordance with Section 3.3

	
			
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ANNEX 1.5.2

Wet Combinatorial R&D Platform Description

		
	A.
	Hardware Description

	
				
	S/N
	Name of delivered equipment and specification
	Configuration
	Quantity

	1.    
	TempusTM F-20
	 

	1.1
	[***]
	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	1.2
	[***]
	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	1.3
	[***]
	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	•    
	 

	•    [***]
	[***]

	•    [***]
	[***]

	1.4
	[***]
	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	
			
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	1.5
	[***]
	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	•    [***]
	[***]

	1.6
	[***]
	[***]
	[***]

	1.7
	[***]
	[***]
	[***]

	1.8
	[***]
	[***]
	[***]

	1.9
	[***]
	[***]
	[***]

	1.10
	[***]
	[***]
	[***]

	1.11
	[***]
	[***]
	[***]

	1.12
	[***]
	[***]
	[***]

	1.13
	[***]
	[***]
	[***]

	1.14
	[***]
	[***]
	[***]

	2.
	TempusTM S-80
	 

	2.1
	[***]
	[***]
	[***]

	2.2
	[***]
	[***]

	2.3
	[***]
	[***]

	2.4
	[***]
	[***]

	2.5
	[***]
	[***]

	2.6
	[***]
	[***]

	2.7
	[***]
	[***]

	2.8
	[***]
	[***]

	2.9
	[***]
	[***]
	[***]

	2.10
	[***]
	[***]
	[***]

	2.11
	[***]
	[***]
	[***]

	2.12
	[***]
	[***]
	[***]

	2.13
	[***]
	[***]
	[***]

	2.14
	[***]
	[***]
	[***]

	
			
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	2.15
	[***]
	[***]
	[***]

	2.16
	[***]
	[***]
	[***]

	2.17
	[***]
	[***]
	[***]

		
	B.
	Operational characteristics of equipment

Refer to Facilities Manuals attached for operational characteristics of each equipment:
		
	•
	Manual, Installation, F-20 System [***]

		
	C.
	Software Description

Informatics Software

Informatics Software is a comprehensive Web-based R&D information management system that serves as the backbone for integrating experimental process data, characterization results and analysis tools into unified R&D workflows. This system enables experimental design, planning, and tracking of experimental splits, the associated metrology, and e-test data. 

Following are the various modules of Informatics Software 
		
	•
	Workflow manager (web & mobile app)

		
	•
	R&D Database

		
	•
	Data loader framework

		
	•
	Data search & export module

		
	•
	Analysis – Electrical Distribution, Spectra, Defect Distribution, Process Distribution, Sample Map, Image gallery

		
	•
	Collaboration forum 

		
	•
	Administrator module to control user access privileges

	
			
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ANNEX 1.5.3

Delivery Schedule

	
							
	S/N
	Stage
	 
	 
	 
	 
	 

	[***]
	[***]
	[***]
	[***]
	[***]

	1.1
	[***]
	[***]
	 
	 
	 
	 

	1.2
	[***]
	 
	[***]
	 
	 
	 

	1.3
	[***]
	 
	 
	[***]
	 
	 

	1.4.
	[***]
	 
	 
	 
	[***]
	 

	1.5.
	[***]
	 
	 
	 
	 
	[***]

	
			
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 ANNEX 1.5.4

Payment Schedule

	
					
	S/N
	Stage
	Stage number in Delivery schedule
	Payment term
	Payment amount*

	1.
	Wet Equipment arrives for customs inspection at the destination point in Ulyanovsk, the Russian Federation
	End of 1.4
	Payment due [***] [***] days from invoice
	[***]

	TOTAL 
(total sum considering all obligatory payments)
	х
	х
	[***]

* The amounts are prior to any applicable taxes.  Any applicable taxes are in addition to the Payment amount and shall be due and payable in accordance with Section 3.3.

	
			
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ANNEX 1.5.5

Acceptance Criteria

The acceptance criteria are described in the following documents which are incorporated herein by reference:

		
	1.
	Procedure Standard Acceptance F-20 [***]

		
	2.
	Procedure, Standard Acceptance, S-80, [***]

 

	
			
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ANNEX 1.5.6
Seller Maintenance and Support Services 
 
This Annex describes the maintenance and support services that Seller will provide with respect to the Wet Combinatorial R&D Platform. 
Term and renewal of services
Seller will provide maintenance and support services set forth herein for the Wet Combinatorial R&D Platform.  Such services will commence upon Customer Tool Installation Completion Signoff and continue for a period of [***] thereafter (the “Initial Term”).
 
Seller will continue to provide said services during any additional term during which Buyer renews maintenance and support services (“Renewal Term”) in accordance with the procedure set forth below.  
 
Not less than [***] prior to the conclusion of the Initial Term, Seller shall send Buyer written notice of the date that the Initial Term is scheduled to expire, together with an invoice for HPC & Informatics License fees (“License Fees”) and maintenance & support fees (‘Support Fees”) for the first year beyond the Initial Term (the “First Renewal Term”) at USD [***] For the License Fees and USD [***] for the Support Fees (for a combined total of [***]), which invoice shall be payable within [***].
 
The fees for HPC & Informatics License and Maintenance & Support (“License-Support”) are included in the pricing in Annex 1.5.1 for a period of [***] from Customer Tool Installation Completion Signoff (the “Initial Term”).  The parties agree to enter into good faith discussions for pricing of the License-Support fees beyond the First Renewal Term, where such pricing shall take into account the fair market value of the License-Support fees.
 
Seller will advise Buyer in advance when Seller believes that maintenance and support services fall outside of the range of supported services (“Non-Covered Services”) and will provide Buyer with a description of such Non-Covered Services and any applicable charges.  All charges by Seller shall be at Seller’s then-current rates.
 
Response Times 
 
Seller customer service may be initiated by calling 1-408 582-5700 or such other number or email provided to Buyer for that purpose.  Seller will use its best judgment to determine the priority level of each error reported by Buyer and shall inform Buyer of any change and the basis thereof.  Seller shall provide and maintain for Buyer contact and escalation procedures for Buyer personnel to reach an appropriate Seller employee as follows:
 
In the event of a call reporting an error, Seller will acknowledge the Buyer call within the next business day of Buyer contacting Seller, followed by initial assessment and an error resolution plan within [***] days of the assessment. Seller will use commercially reasonable efforts to schedule and execute error resolution activities in a timely fashion and in accordance with the error resolution plan.  Provided that Seller’s activities under the error resolution plan are not related to activities outside Seller’s control (e.g. shipping delays, long-lead design and parts procurement), Seller will make commercially reasonable efforts to execute the plan within a period of [***].  In the event Seller’s activities under the error resolution plan are related to activities outside Seller’s control (e.g. shipping delays, long-lead design and parts procurement), Seller shall notify Buyer accordingly.
 
Maintenance and Support Services 

	
			
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A.   Informatics Hardware and Equipment Support
 
During the Initial Term and any Renewal Term, provided Seller receives the reasonable requested cooperation from Buyer, Seller will do the following:
 
		
	(a)
	Remedial maintenance will be provided by Seller during normal working hours.  Buyer will provide [***] access to the Hardware as needed to perform any services hereunder.  

 
		
	(b)
	During the Warranty Period (as defined in Section 8.3), Seller will[***] maintain the Hardware in accordance with the warranty set forth in the Contract, including replace or repair (collectively “Remedy”) parts as deemed necessary by Seller.  After the end of the Warranty Period (provided Buyer extends the maintenance and support services to be provided under this Annex beyond the Initial Term), Seller will Remedy parts at Buyer’s expense.  In either of the foregoing, Seller will pay for the labor and services required to Remedy the parts (but will not pay for the parts beyond the Warranty Period).  Buyer shall inform Seller if any replaced parts may be contaminated with hazardous or toxic materials.  All parts may be furnished on an exchange basis and may be new or refurbished spares. Replaced parts removed from the Hardware will, at Seller’s sole option, become the property of Seller. All [***] items, including but not limited to [***] are excluded from coverage hereunder.  Cost of [***]and [***], including [***] are to be covered by Buyer.  Buyer is responsible for maintenance, and cost, of support equipment which are not listed in the Sign-Off.

 
		
	(c)
	Seller shall not be responsible for maintenance and support services under the contract based on damage caused by (i) Equipment operation outside of specified hardware limits and process conditions, (ii) adjustments, repairs or replacement parts required because of operator-caused error or repeated misuse of Hardware; (iii) a non-conformity arising from or after relocation of the Hardware without prior written approval of Seller, which shall not be unreasonably withheld, unless Buyer can demonstrate by clear and convincing evidence that the relocation did not cause the non-conformity, in whole or in part, or (iv) damages covered arising out of force majeure.  All repairs required by such excluded damage will be subject to an additional charge, as agreed in advance in writing by Seller and Buyer.

 
B. Software Support
 
During the Initial Term and during any Renewal Term, Seller shall use commercially reasonable efforts to do the following: 
 
(a)   Remedial maintenance will be provided by Seller during normal working hours.  Buyer will provide full and free access to the Software as needed to perform any services hereunder.  
(b)   During the Warranty Period (as defined in Section 8.3), Seller will maintain the Software in accordance with the warranty set forth in the Contract.  Buyer will provide VPN site-to-site Internet access to the data network located at the Seller Facility to improve Seller’s ability to support Buyer.  
 
c) Seller is not required to support or maintain any version of the Software except its then-current, commercially released version, and the version that immediately preceded that version.  For such immediately preceding software version, Seller shall use commercially reasonable efforts to provide error-fixing updates, but shall have no obligation to provide upgrades that improve the functionality of that software version.
 
		
	(d)
	Seller is not obligated to provide, free of charge services, additional services, outside of the range of normal support services, such as debugging problems in non-Seller-supported software or products, 

	
			
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or in combinations of supported and non-supported software or products where the problem occurs in products or software not supplied by Seller.

	
			
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ANNEX 1.5.7

Installation and Facility Requirements

The facility requirements are described in the following documents which are incorporated herein by reference:
		
	1.
	F-20 Facility Requirements

		
	2.
	S-80 Facility Requirements

The installation requirements specifying the exact and exhaustive additional equipment, infrastructure and certain requirements needed for the Equipment being installed and started-up at the Buyer site shall be drafted and incorporated herein by the Parties within a term of [***] since the Execution date.

	
			
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ANNEX 1.5.8

Documents at Sign-Off
 
 
Operation Manuals:
 
1.       Manual, Installation, F-20 System [***]
2.       Manual, Maintenance, F-20 System [***]
3.       Manual, Safety, F-20 System [***]
4.       Manual, User, F-20 System [***]

5.       Procedure, Decontamination, F-20, [***]
6.       Procedure, Standard Operating, for Operator Level User, F-20, [***]
7.       Procedure, Informatics Site Preparation, [***]
 
Certificates:
 
None from Seller
 

	
			
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ANNEX 1.5.9

Informatics Modules

HPC Technology as Know How includes the following Informatics Modules 
1. R&D Workflow management: [***]
2. Data loading framework: [***]
3. Collaboration forum: [***]
4.  Analysis: [***]
5. Data search & export: [***]
6.   Visual Data analysis: [***] 
7.  R&D data warehouse: [***]
 The documentary and supplementary information listed above shall be transferred by the Seller to the Buyer in PDF files in digital within a period of [***] since the execution date.

The Parties shall confirm save receipt of the Know How information by drafting a Completion act in [***] after the transfer of data has occurred.

	
			
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Annex 1.5.10

Acceptance completion act

No. __

September ___, 2013

 

The present Acceptance completion act (hereinafter referred to as the “Act”) is concluded between 

Limited Liability Company Ulyanovsk Center for Technology Transfer, a Russian Federation corporation doing business at 67 Krymova St., Ulyanovsk, Russia, 432071, hereinafter referred to as the "Buyer", on the one part, 

and Intermolecular, Inc., a Delaware, USA corporation doing business at 3011 North First St., San Jose, CA 95134, USA, hereinafter referred to as the "Seller", 

and Limited liability Company “Russkie Tehnoparki” a Russian Federation corporation doing business at 1 Sirenevyi bulv., c.c. Troitsk, Moscow, Russia, 142191 hereinafter referred to as the "Customer’s Engineer", 

(jointly referred to as the “Parties” and individually referred to as the “Party”) as follows:.

 

1. All Parties entered into the Equipment Supply and Technology Licensing Contract for Wet ,Equipment __th, 2013 (hereinafter the “Contract”). 

	
			
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2. All Parties acknowledge that the Seller transferred and the Buyer accepted the Wet Equipment at the customs inspection at Ulyanovsk, Russian Federation. The acceptance was held without unpacking the Equipment, but only based on the quantity of packages and other data about cargo specified in the documents referred to in Section 5 of the Contract. The Parties confirm that the packaging was undamaged and that labels on the cargo conform with Section 6.4 and the data set out in the documents delivered along with the cargo.

3. The Parties further acknowledge that since the date of this Act the title in the Equipment and risk of loss and damage thereof has been transferred to the Buyer.

4. Further to the Contract, this Act is a basis for the submission of an invoice for the Contract price in accordance with the Payment Schedule.

5. Each Party has received its equally enforceable original copies of the Contract and Annexes thereto that have been signed by each Party.

 

6. The present Act is executed in three original counterparts in English and Russian. All capitalized terms used in this Act shall have the same meaning as in the Contract, unless otherwise expressly stated herein. 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Act to be executed by their duly authorized representatives:

“Buyer”

Ulyanovsk Center for Technology Transfer Ltd.

	
			
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Date:

Name:

(Print)

Title:

“Seller”

Intermolecular, Inc

Date:

Name:

(Print)

Title:

“Customer’s Engineer”

Limited liability Company “Russkie Tehnoparki”

Date:

Name:

(Print)

Title:

	
			
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Annex 1.5.11

Start-up Act 

No. __

September ___ , 2013

 

The present Start-up act (hereinafter referred to as the “Act”) is concluded between 

Limited Liability Company Ulyanovsk Center for Technology Transfer, a Russian Federation corporation doing business at 67 Krymova St., Ulyanovsk, Russia, 432071, hereinafter referred to as the "Buyer", on the one part, 

and Intermolecular, Inc., a Delaware, USA corporation doing business at 3011 North First St., San Jose, CA 95134, USA, hereinafter referred to as the "Seller", 

and Limited liability Company “Russkie Tehnoparki” a Russian Federation corporation doing business at 1 Sirenevyi bulv., c.c. Troitsk, Moscow, Russia, 142191 hereinafter referred to as the "Customer’s Engineer", 

(jointly referred to as the “Parties” and individually referred to as the “Party”) as follows:.

1. All Parties entered into the Equipment Supply and Technology Licensing Contract, __th, 2013 (hereinafter the “Contract”). 

	
			
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2. Hereby the Parties confirm successful completion of the Customer Tool Installation Completion Signoff, in particular, that the Wet Equipment has been properly installed, started-up and adjusted at Buyer Site and that the Wet Equipment conforms with the Specifications and that training obligations are dully performed by the Seller.  

3. The Parties further acknowledge that since the date of this Act the Buyer has been granted the license to use the Seller’s Technology (including Know-How) as stated in the Contract.

4. Each Party has received its equally enforceable original copies of the Contract and Annexes thereto that have been signed by each Party.

 

5. The present Act is executed in three original counterparts in English and Russian. All capitalized terms used in this Act shall have the same meaning as in the Contract, unless otherwise expressly stated herein. 

IN WITNESS WHEREOF, the parties hereto have caused this Act to be executed by their duly authorized representatives:

“Buyer”

Ulyanovsk Center for Technology Transfer Ltd.

Date:

Name:

(Print)

Title:

“Seller”

	
			
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Intermolecular, Inc

Date:

Name:

(Print)

Title:

“Customer’s Engineer”

Limited liability Company “Russkie Tehnoparki”

Date:

Name:

(Print)

Title:

	
			
	3838uamy_1061.htm

Exhibit 10.61

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of December 10, 2013, between United States Antimony Corporation, a Montana corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

 

ARTICLE I.

DEFINITIONS

 

1.1 Definitions.  The following terms have the meanings set forth in this Section 1.1:

 

“144 Sale” shall have the meaning ascribed to such term in Section 4.1(c).

 

“144 Sale Shares” shall have the meaning ascribed to such term in Section 4.1(c).

 

“8-K Filing” shall mean the current report on Form 8-K filed on EDGAR with the Commission disclosing the sale of equity securities pursuant to this Agreement and attaching as exhibits thereto all material Transaction Documents, including, without limitation, this Agreement and the form of Warrant.

 

“Action” shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Articles of Incorporation” shall have the meaning ascribed to it in Section 3.1(h).

 

 “Board of Directors” means the board of directors of the Company.

 

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

  

 

  

 

“Bylaws” shall have the meaning ascribed to it in Section 3.1(h).

 

“Closing” means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing Date” means the Business Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived.

 

“Closing Statement” means the Closing Statement in the form on Annex A attached hereto.

 

“Commission” means the United States Securities and Exchange Commission.

 

“Common Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

 

“Company Counsel” means Stoel Rives LLP, with offices located at 101 S. Capitol Blvd., Suite 1900, Boise, Idaho 83702.

 

“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto;

 

“Disclosure Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“GAAP” shall have the meaning ascribed to such term in Section 3.1(i).

 

“Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance with GAAP) (other than trade payables entered into in the ordinary course of business), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above.

 

“Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(w).

 

  

2

  

 

“Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material Adverse Effect” shall mean (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document.

 

“Material Permits” shall have the meaning ascribed to such term in Section 3.1(k).

 

 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Public Information Failure” shall have the meaning ascribed to it in Section 4.2(b).

 

“Public Information Failure Payments” shall have the meaning ascribed to it in Section 4.2(b).

 

 “Required Approvals” shall have the meaning ascribed to such term in Section 3.1(f).

 

“Required Minimum” means, as of any date, the maximum aggregate number of Shares then issued or potentially issuable in the future pursuant to the Transaction Documents, including, without limitation, 100% of the shares of Common Stock underlying the Warrants, ignoring any conversion or exercise limits set forth therein.

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(i).

 

“Securities” means the Shares, the Warrants and the Warrant Shares.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares” means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

 

“Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary” means any subsidiary of the Company as set forth on Schedule 3.1(b) and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Transaction Documents” means this Agreement, the Warrants, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer Agent” means Columbia Stock Transfer Company, the current transfer agent of the Company, with a mailing address of 1869 E. Seltice Way, # 292, Post Falls, Idaho 83854, and any successor transfer agent of the Company.

 

 “Warrants” means the Common Stock purchase warrants bearing a restrictive legend delivered to the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which warrants shall be exercisable as of the Issue Date (as defined therein).  The Warrants shall have an exercise price of $1.60 and a term of exercise equal to one (1) year from the Issue Date, in the form of Exhibit D attached hereto.

 

“Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

  

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ARTICLE II.

PURCHASE AND SALE

 

2.1 Closing.  On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of 534,480 Shares at a per share purchase price equal to $1.25 per share with one Warrant for two shares of Common stock exercisable at $1.60 for one share of Common stock for a period of one year from the date of issuance.  For every Share subscribed by each Purchaser, such Purchaser hereby subscribes for one-half (1⁄2) of a Warrant.  Each Purchaser shall deliver to Company via wire transfer or a certified check of immediately available funds equal to such Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser and the Company shall deliver to each Purchaser its respective Common Stock and Warrants as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. In lieu of delivering such funds to the Company, Purchaser may deliver such funds at the Closing to the Company via wire transfer or a certified check of immediate available funds.  Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of United States Antimony Corporation, P.O. Box 643, Thompson Falls, MT, 59873 or such other location as the parties shall mutually agree.

 

                2.2 Deliveries.

     

                                                (a) On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

                                                                                (i)  this Agreement duly executed by the Company;

 

(ii) a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver, on an expedited basis, a certificate evidencing a number of Shares equal to such Purchaser’s Subscription Amount divided by the per share purchase price of $1.25 per share, registered in the name of such Purchaser and a copy of such certificate;

 

                                                                              (iii) such number of Warrants as set forth opposite such Purchaser’s name in the Schedule A hereto;

 

                                               (b) On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

                                                                               (i) this Agreement duly executed by such Purchaser;

                                                

                                                                               (ii) such Purchaser’s Subscription Amount by wire transfer to the account as specified in writing by the Company; and

 

                              (vi)  the Purchaser Questionnaire in the form on Annex B attached hereto.                                       

              2.3 Closing Conditions.

 

(a) The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the accuracy in all material respects on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific date therein);

 

(ii) all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

 

(iii) the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b) The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the accuracy in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein (except for those which by their terms specifically refer to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) as of such earlier date);

 

(ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

  

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(iii) the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv) there shall have been no Material Adverse Effect with respect to the Company since the date hereof;

 

(v) from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the over-the-counter market on the NYSE MKT (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing); and

 

(vi) the delivery by the Company of a certificate dated as of the Closing Date signed on behalf of the Company confirming the satisfaction of the conditions contained in paragraphs (i), (ii), (iv) and (v) of this Section 2.3(b).

 

 

ARTICLE III.

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

3.1   Representations and Warranties of the Company.  Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

 

(a) [intentionally omitted].

 

(b) Subsidiaries.  All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(b).  The Company owns, directly or indirectly, such percentage of the Subsidiary as set forth in Schedule 3.1(b) and such ownership interest is free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.  If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded. Other than as contemplated by the Transaction Documents, there are no outstanding preemptive, conversion or other rights, options, warrants or agreements granted or issued by or binding upon any subsidiary for the purchase or acquisition of any shares of capital stock of any subsidiary or any other securities convertible into, exchangeable for or evidencing the rights to subscribe for any shares of such capital stock that would have a dilutive effect on the Company’s ownership of its subsidiaries. Other than as contemplated by the Transaction Documents, neither the Company nor any subsidiary is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of the capital stock of any subsidiary or any convertible securities, rights, warrants or options of the type described in the preceding sentence. Neither the Company nor any subsidiary is party to, nor has any knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock of any subsidiary.

(c) Organization and Qualification.  The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse Effect and no Proceeding has been initiated in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(d) Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection therewith other than in connection with the Required Approvals.  Each Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(e) No Conflicts.  The execution, delivery and performance by the Company of the Transaction Documents, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(f) Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.5 of this Agreement, (ii) the filing with the Commission pursuant to the Registration Rights Agreement and (iii) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

  

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(g) Issuance of the Securities.  The Shares and Warrants are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens other than restrictions on transfer provided for in the Transaction Documents.  The Warrant Shares, when issued, will be duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens other than restrictions on transfer provided for in the Transaction Documents.  The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Warrant Shares at least equal to the Required Minimum on the date hereof.

 

(h) Capitalization.  The capitalization of the Company is as set forth on Schedule 3.1(h), which Schedule 3.1(h) shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and nonassessable.  Except as disclosed in Schedule 3(h): (i) none of the Company’s capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries which are convertible into or exchangeable for any shares of capital stock of the Company; (iv) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions and other agreements consistent with past practices, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (v) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (vi) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; (vii) there are no financing statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection with the Company or any of its Subsidiaries; (viii) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities Act; and (ix) the Company and its Subsidiaries have no liabilities or obligations required to be disclosed in the SEC Reports but not so disclosed in the SEC Reports, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or would not have a Material Adverse Effect.  The Company has made available to the Purchasers true, correct and complete copies of the Company’s Articles of Incorporation, as amended and as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s Bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all securities convertible into, or exercisable or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto.  No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.  The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.

 

(i) SEC Reports; Financial Statements. Except as set forth on Schedule 3.1(i), the Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  Except as set forth on Schedule 3.1(i), as of their respective filing dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  Except as set forth on Schedule 3.1(i), the financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.  Such financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments

 

(j) Litigation.  Except as set forth in Schedule 3.1(j), there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.  There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company.  The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the Exchange Act or the Securities Act.

 

(k) Regulatory Permits.  The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as currently conducted, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

  

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(l) Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby.

 

(m) Listing and Maintenance Requirements.  The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.  The Company has not received notice from the NYSE MKT on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such over-the-counter market on the electronic bulletin board. The Company is unaware of any facts or circumstances that could reasonably be expected to cause failure to maintain the continued listing of the Common Stock on the over-the-counter market on the electronic bulletin board.

 

(n) Disclosure.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information.  The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.  All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.

 

(o) No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act which would require the registration of any such securities under the Securities Act.

 

(p) No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising.  The Company has offered the Securities for sale only to the Purchasers and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(q) Acknowledgment Regarding Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.  The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(r) Regulation M Compliance.  The Company has not, and no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.

 

(s) Material Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited financial statements included within the SEC Reports, except as set forth on Schedule 3.1(s) or as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans.  The Company does not have pending before the Commission any request for confidential treatment of information.  Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one (1) Business Day prior to the date that this representation is made.

 

(t) Labor Relations.  No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect.  None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good.  No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.  The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

  

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(u) Compliance.  Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(v) Title to Assets.  The Company and the Subsidiaries have good and marketable title in all property, whether real or personal, owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(w) Patents and Trademarks.  The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights as described in the SEC Reports as necessary or material for use in connection with their respective businesses and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).  Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person.  To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights.  The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(x) Transactions With Affiliates and Employees.  Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company.

 

(y) Certain Fees.  Except as set forth in Schedule 3.1(z), no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.  The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(z) Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.  The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended.

 

(aa) Shell Company Status. The Company is not, and has never been, an issuer identified in Rule 144(i)(1).

 

(bb) Registration Rights.  Except as set forth in Schedule 3.1(bb), no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company.

 

(cc) Solvency.  Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid.  The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).  The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date.  Schedule 3.1(cc) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments.

 

  

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(dd) Tax Returns.  Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary.

 

(ee) Foreign Corrupt Practices.  Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(ff) Accountants.  The Company’s accounting firm is set forth on Schedule 3.1(ff) of the Disclosure Schedules.  To the knowledge and belief of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the year ending December 31, 2013.

 

(gg) No Disagreements with Accountants and Lawyers.   Except as set forth on Schedule 3.1(gg), there are no disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company which could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents, the Company is current with respect to any fees owed to its accountants and lawyers.

 

3.2                     Representations and Warranties of the Purchasers.    Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a) Organization; Authority.  Such Purchaser is either an individual or an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.  Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b) Own Account. Such Purchaser understands that the Securities are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws).  Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

(c) Purchaser Status.  At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises any Warrants or converts any Common Stock it will be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.  Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

 

(d) Experience of Such Purchaser.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e) General Solicitation.  Such Purchaser is not, to its knowledge, purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or, to such Purchaser’s knowledge, any other general solicitation or general advertisement.

 

(f) Certain Transactions and Confidentiality.  Other than consummating the transactions contemplated hereunder, such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.  Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

 

 

  

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ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1      Transfer Restrictions.

 

(a) The Securities may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.  As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

 

(b) The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any Shares, Warrants and Warrant Shares in substantially the following form:

 

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE, IF APPLICABLE, HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT.

 

(c) Certificates evidencing the Shares and the Warrant Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) following any sale of such Shares or Warrant Shares pursuant to Rule 144, (ii) if such Shares or Warrant Shares, as the case may be, are eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Shares or Warrant Shares, as the case may be, and without volume or manner-of-sale restrictions or (iii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after notice is received of any of the events listed in this Section 4.1(c) if required by the Transfer Agent to effect the removal of the legend hereunder.  If any Warrant is exercised or any Shares are sold at a time when there is an effective registration statement to cover the resale of the Warrant Shares or the Shares, as the case may be, or if such Warrant Shares or Shares may be sold under Rule 144 and the Company is then in compliance with the current public information required under Rule 144, or if such Warrant Shares or Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Warrant Shares or Shares and without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Warrant Shares or Shares, as the case may be, shall be issued free of all legends.  The Company agrees that (i) if such Warrant Shares or Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Warrant Shares or Shares and without volume or manner-of-sale restrictions or (ii) at such time as such legend is no longer required under this Section 4.1(c), it will, no later than three (3) Business Days following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Warrant Shares or the Shares, as applicable, issued with a restrictive legend, deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends.  The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.  Certificates for Warrant Shares and Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s broker with the Depository Trust Company System as directed by such Purchaser.  Within five (5) Business Days after receiving written notice of a Purchaser’s sale of Shares or Warrant Shares pursuant to Rule 144 at a time when compliance with Rule 144(c)(1) is required (a “144 Sale”), the Company shall cause the Transfer Agent to transmit to the Purchaser or its order a certificate or certificates, free of restrictive legends, representing the Shares and/or Warrant Shares that were the subject of that notice (“144 Sale Shares”).  In addition to any other rights available to a Purchaser, if the Transfer Agent fails to transmit such certificates to a Purchaser or its order by the end of the fifth Business Day after the Company received written notice of that 144 Sale (the “Delivery Date”), then the Company shall pay to the Purchaser an amount in cash equal to 2% of the purchase price of the 144 Sale Shares (or the Warrant exercise price, to the extent the 144 Sale Shares are Warrant Shares), and will pay an additional 2% of such purchase price (or exercise price, as applicable) for every thirty day period (pro rated for shorter periods) beginning more than 30 days after the Delivery Date until the certificate or certificates as to the 144 Sale Shares are delivered free of restrictive legends.  Nothing herein shall limit a Purchaser’s right to pursue any other remedies available to it hereunder, at law, or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificate or certificates representing Shares sold pursuant to Rule 144 as required by this Agreement.

(d) Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any Securities pursuant to the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom and acknowledges that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

 

4.2      Furnishing of Information; Public Information, Failure of Registration.

 

(a) If the Common Stock is not registered under Section 12(b) or 12(g) of the Exchange Act on the date hereof, the Company agrees to cause the Common Stock to be registered under Section 12(g) of the Exchange Act on or before the Closing Date. Until the time that no Purchaser owns any Securities, the Company covenants to maintain the registration of the Common Stock under Sections 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect hereof and file within the applicable grace periods) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.

 

 

  

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(b) At any time during the period commencing from the six (6) month anniversary of the Closing Date and ending at such time that all of the Securities, if a registration statement is not available for the resale of all of the Securities, may be sold without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1), if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) (a “Public Information Failure”) then, as partial relief for the damages to any holder of Securities by reason of any such delay in or reduction of its ability to sell the Securities (which remedy shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to each such holder an amount in cash equal to two percent (2.0%) of the aggregate purchase price of such holder’s Securities that cannot be sold resulting directly from such Public Information Failure on the day of a Public Information Failure and on every thirtieth day (pro rated for periods totaling less than thirty days) thereafter until the earlier of (i) the date such Public Information Failure is cured and (ii) such time that such public information is no longer required pursuant to Rule 144.  The payments to which a holder shall be entitled pursuant to this Section 4(n) are referred to herein as “Public Information Failure Payments.”  Public Information Failure Payments shall be paid on the earlier of (x) the last day of the calendar month during which such Public Information Failure Payments are incurred and (y) the third Business Day after the event or failure giving rise to the Public Information Failure Payments is cured.  In the event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate of one and one-half percent (1.5%) per month (prorated for partial months) until paid in full.

 

4.3  Integration.    The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities.

 

4.4  Exercise Procedures.  The form of Notice of Exercise included in the Warrants set forth the totality of the procedures required of the Purchasers in order to exercise the Warrants.  No additional legal opinion, other information or instructions shall be required of the Purchasers to exercise their Warrants.  The Company shall honor exercises of the Warrants and shall deliver Warrant Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

 

4.5  Securities Laws Disclosure; Publicity.  The Company shall, by 8:30 a.m. (MDT time) on no later than the fourth Business Day immediately following the date hereof, issue a Current Report on Form 8-K and press release disclosing the material terms of the transactions contemplated hereby, and including the Transaction Documents as exhibits thereto.  Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency, without the prior written consent of such Purchaser, except: (a) as required by federal securities law in connection with the filing of final Transaction Documents (including signature pages thereto) with the Commission and (b) to the extent such disclosure is required by law, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

4.6  Shareholder Rights Plan.  No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.7  Non-Public Information.  From and after the filing of the 8-K Filing with the SEC, no Purchaser shall be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents, that is not disclosed in the 8-K Filing.  The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents, not to, provide any Purchaser with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the filing of the 8-K Filing with the SEC without the prior express written consent of such Purchaser.  If a Purchaser has, or believes it has, received any such material, nonpublic information regarding the Company or any of its Subsidiaries from the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates or agents, it may provide the Company with written notice thereof.  In the event of the disclosure of any material nonpublic information, the Company shall comply with its obligations under Regulation FD promulgated under the Securities Act and the Exchange Act by filing a press release and current report on Form 8-K disclosing the material non-public information within five days of its disclosure to any Purchaser.  Subject to the foregoing, neither the Company, its Subsidiaries nor any Purchaser shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of any Purchaser, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Purchaser shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release).  Without the prior written consent of any applicable Purchaser, neither the Company nor any of its Subsidiaries or affiliates shall disclose the name of such Purchaser in any filing, announcement, release or otherwise.

 

4.8  Use of Proceeds.  The Company shall use the net proceeds from the sale of the Securities hereunder for final payments on the natural gas pipeline of $133,500, payment due on mine property of $62000, and ore purchases of $100,000, with the remaining funds to be used for expansion and other working capital purposes.

 

4.9  Reservation of Securities.

 

(a) The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may then be required to fulfill its obligations in full under the Transaction Documents.

 

(b) If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required Minimum on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company’s Articles of Incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time, as soon as possible and in any event not later than the 75th day after such date.

 

  

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4.10  Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the Company’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.5.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.5, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents and the Disclosure Schedules.  Notwithstanding the foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.5, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.5 and (iii) no Purchaser shall have any duty of confidentiality to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.5.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.

 

ARTICLE V.

MISCELLANEOUS

 

5.1  Termination.  This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before December 10, 2013.

 

5.2  Fees and Expenses.  Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

5.3  Entire Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4  Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (Montana, MDT) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (Montana, MDT) on any Business Day, (c) the second (2nd) Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.5  Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers holding at least 75% in interest of the Securities purchased hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.6  Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

5.7  Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger).  Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8  No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.10.

 

  

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5.9  Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Montana, without regard to the principles of conflicts of law thereof.  Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the State of Montana.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of Montana for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.   If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

5.10  Survival.  The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11  Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

5.12  Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13  Replacement of Securities.  If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction.  The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

5.14  Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents.  The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

5.15  Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

  

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5.16  Independent Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document.  Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.  Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose.  Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents.  The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.

 

5.17  Saturdays, Sundays, Holidays, etc.   If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

5.18  Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

5.19  WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

 

(Signature Pages Follow)

 

  

14

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
UNITED STATES ANTIMONY CORPORATION

 

 

	
Address for Notice:

P.O. Box 643

Thompson Falls, Montana 59873

	
By:_____________________________

     Name:John C. Lawrence

     Title: President

 

	
Fax:

	  	  

 

 

(Signature Page for Purchasers Follows)

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:  Thomas H. McInish                                                                                                                     
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Thomas H. McInish                                                         
	 	 
	Name of Authorized Signatory:   Thomas H. McInish                                                                                                
	 	 
	Title of Authorized Signatory: _________________________________________________________
	 	 
	Email Address of Authorized Signatory: _________________________________________________
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $12.500                          
	 	 
	Warrant Shares: 5,000                                        
	 	 
	EIN Number: _____________________

 

                                          

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

	Name of Purchaser:  David M. Kemme                                                                                                                    
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ David M. Kemme                                                        
	 	 
	Name of Authorized Signatory:   David M. Kemme                                                                                               
	 	 
	Title of Authorized Signatory: _________________________________________________________
	 	 
	Email Address of Authorized Signatory: _________________________________________________
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $12.500                          
	 	 
	Warrant Shares: 5,000                                        
	 	 
	 EIN Number:                                                   

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:  John J. Williams                                                                                                                   
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ John J. Williams                                                      
	 	 
	Name of Authorized Signatory:   John J. Williams                                                                                              
	 	 
	Title of Authorized Signatory: _________________________________________________________
	 	 
	Email Address of Authorized Signatory: _________________________________________________
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $12.500                          
	 	 
	Warrant Shares: 10,000                                        
	 	 
	 EIN Number:                                                   

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

	Name of Purchaser:  Robert Ralston                                                                                                                 
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Robert Ralston                                                     
	 	 
	Name of Authorized Signatory:   Robert Ralston                                                                                             
	 	 
	Title of Authorized Signatory: _________________________________________________________
	 	 
	Email Address of Authorized Signatory: _________________________________________________
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $30,000                         
	 	 
	Warrant Shares: 12,000                                      
	 	 
	 EIN Number:                                                   

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:  Robert R. Detwiler                                                                                                               
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Robert R. Detwiler                                                  
	 	 
	Name of Authorized Signatory:   Robert R. Detwiler                                                                                           
	 	 
	Title of Authorized Signatory: _________________________________________________________
	 	 
	Email Address of Authorized Signatory: _________________________________________________
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $200,000                        
	 	 
	Warrant Shares: 80,000                                         
	 	 
	 EIN Number:                                                   

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:  Kenneth M. Reed FLP 5                                                                                                          
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Kenneth M. Reed FLP 5                                                 
	 	 
	Name of Authorized Signatory:   Kenneth M. Reed FLP 5                                                                                          
	 	 
	Title of Authorized Signatory: _________________________________________________________
	 	 
	Email Address of Authorized Signatory: _________________________________________________
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $125,000                       
	 	 
	Warrant Shares: 50,000                                    
	 	 
	 EIN Number:                                                   

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:  Clement McCune Brown III                                                                                                              
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Clement McCune Brown III                                                  
	 	 
	Name of Authorized Signatory:   Clement McCune Brown III                                                                                          
	 	 
	Title of Authorized Signatory: _________________________________________________________
	 	 
	Email Address of Authorized Signatory: _________________________________________________
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $25,000                       
	 	 
	Warrant Shares: 20,000                                   
	 	 
	 EIN Number:                                                   

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:  Stephen S. Pearce & Laurie E. Pearce, as ttees of the Stephen S. Pearce & Laurie E. Pearce Family Tr,
	 
	                                    dated July 29, 2013                                                                                                                                               
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Stephen S. Pearce  Laurie E. Pearce                                                
	 	 
	Name of Authorized Signatory:   Stephen S. Pearce  Laurie E. Pearce                                                                                          
	 	 
	Title of Authorized Signatory:     Trustees                                                                                                                                      
	 	 
	Email Address of Authorized Signatory:                                                                                                                          
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $16,100                              
	 	 
	Warrant Shares: 10,000                                       
	 	 
	 EIN Number:                                                             

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:     Blaise Aguire                                                                                                         
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Blaise Aguire                                                 
	 	 
	Name of Authorized Signatory:   Blaise Aguire                                                                                          
	 	 
	Title of Authorized Signatory:                                                                                                                      
	 	 
	Email Address of Authorized Signatory:                                                                                                    
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $12,000                     
	 	 
	Warrant Shares: 4,800                                   
	 	 
	 EIN Number:                                                   

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:     Gregory J. Vislocky                                                                                                 
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Gregory J. Vislocky                                               
	 	 
	Name of Authorized Signatory:   Gregory J. Vislocky                                                                                          
	 	 
	Title of Authorized Signatory:                                                                                                                                 
	 	 
	Email Address of Authorized Signatory:                                                                                                                
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $25,000                    
	 	 
	Warrant Shares:  10,000                                
	 	 
	 EIN Number:                                                   

 

  

25

  

 

UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:    Betsey L. Detwiler                                                                                                           
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Betsey L. Detwiler                                                     
	 	 
	Name of Authorized Signatory:    Betsey L. Detwiler                                                                                          
	 	 
	Title of Authorized Signatory:                                                                                                                                           
	 	 
	Email Address of Authorized Signatory:                                                                                                            
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser: 

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $10,000                   
	 	 
	Warrant Shares:  4,000                                 
	 	 
	 EIN Number:                                                   

 

 

  

26

  

 

UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:    Timothy S. Colton                                                                                                         
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Timothy S. Colton                                                   
	 	 
	Name of Authorized Signatory:    Timothy S. Colton                                                                                        
	 	 
	Title of Authorized Signatory:                                                                                                                                  
	 	 
	Email Address of Authorized Signatory:                                                                                                              
	 	 
	Facsimile Number of Authorized Signatory:                                                                                                           
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $100,000                  
	 	 
	Warrant Shares:  40,000                                  
	 	 
	 EIN Number:                                                   

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:    Craig Horn                                                                                                          
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ Craig Horn                                                  
	 	 
	Name of Authorized Signatory:    Craig Horn                                                                                                  
	 	 
	Title of Authorized Signatory:                                                                                                                                  
	 	 
	Email Address of Authorized Signatory:                                                                                                               
	 	 
	Facsimile Number of Authorized Signatory:                                                                                                       
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $25,000                 
	 	 
	Warrant Shares:  10,000                             
	 	 
	 EIN Number:                                                   

 

 

  

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UNITED STATES ANTIMONY CORPORATION

PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	Name of Purchaser:    William D. Burt                                                                                                      
	 	 
	Signature of Authorized Signatory of Purchaser:  /s/ William D. Burt                                              
	 	 
	Name of Authorized Signatory:    William D. Burt                                                                                       
	 	 
	Title of Authorized Signatory:                                                                                                            
	 	 
	Email Address of Authorized Signatory:                                                                                                            
	 	 
	Facsimile Number of Authorized Signatory: ______________________________________________
	 	 
	
Address for Notice of Purchaser:

	 
	 	 
	
Address for Delivery of Securities for Purchaser (if not same as address for notice):

	 	 
	Subscription Amount: $50,000                          
	 	 
	Warrant Shares:  20,000                                      
	 	 
	 EIN Number:                                                   

 

 

 

  

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Schedule A

UNITED STATES ANTIMONY CORPORATION

Securities Purchase Agreement

LIST OF PURCHASERS

December 9, 2013

 

	
Legal 

Name of Purchaser 

	 	
Shares of

Common Stock

	 	 	Warrants	 	 	Investment Amount	 
	 	 	 	 	 	 	 	 	 	 
	Thomas H. McInish	 	 	10,000	 	 	 	5,000	 	 	$	12,500.00	 
	 David M. Kemme  	 	 	10,000	 	 	 	5,000	 	 	$	12,500.00	 
	
John J. Williams

	 	 	20,000	 	 	 	10,000	 	 	$	25,000.00	 
	
Robert Ralston

	 	 	24,000	 	 	 	12,000	 	 	$	30,000.00	 
	
Robert R. Detwiler

	 	 	120,000	 	 	 	60,000	 	 	$	150,000.00	*
	
Kenneth M. Reed FLP5

	 	 	100,000	 	 	 	50,000	 	 	$	125,000.00	 
	
Clement McCune Brown III

	 	 	20,000	 	 	 	10,000	 	 	$	25,000.00	 
	
Stephen S. Pearce & Laurie E. Pierce Family Tr, dated 

July 29, 2013

	 	 	12,880	 	 	 	6,440	 	 	$	16,100.00	 
	
Blaise Aguirre

	 	 	9,600	 	 	 	4,800	 	 	$	12,000.00	 
	
Gregory J. Vislocky

	 	 	20,000	 	 	 	10,000	 	 	$	25,000.00	 
	
Betsey J. Detwiler

	 	 	48,000	 	 	 	24,000	 	 	$	60,000.00	**
	
Timothy S. Colton

	 	 	80,000	 	 	 	40,000	 	 	$	100,000.00	 
	
Craig Horn

	 	 	20,000	 	 	 	10,000	 	 	$	25,000.00	 
	
William D. Burt

	 	 	40,000	 	 	 	20,000	 	 	$	50,000.00	 
	
TOTAL

	 	 	534,480	 	 	 	267,240	 	 	$	518,100.00	***

                                                                                                                                                               

*Includes the conversion of $100,000 of debt into equity at $1.25 per share.

** Includes the conversion of $50,000 of debt into equity at $1.25 per share

***Excluding debt conversion.

 

30

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