Document:

ex10-90.htm

Boeing/PositiveID SM Teaming Agreement No. TA-2012-00335

 

Exhibit 10.90

 

 

====================================================

 

 

TEAMING AGREEMENT

 

FOR

 

BioWatch Gen-3 Autonomous Biodetection System

 

HSHQDC-12-R-00001

 

 

No. TA-2012-00335

 

=====================================================

 

 

 

BY and BETWEEN

 

 

 

 

THE BOEING COMPANY

 

 

 

 

and

 

 

 

 

POSITIVEID CORPORATION

 

BOEING PROPRIETARY

  

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Boeing/PositiveID SM Teaming Agreement No. TA-2012-00335

 

TEAMING AGREEMENT

This Teaming Agreement ("Agreement") is entered into as of the Effective Date, by and between The Boeing Company, a Delaware corporation, acting through itsInformation Solutions Division and Secure Infrastructure Group  business organization ("Boeing") and  MicroFluidic Systems (“MFS”), a California corporation, with its principal place of business located at 1252 Quarry Lane, Suite A, Pleasanton, CA  94566, and its parent company, PositiveID Corporation (“PSID”), a Delaware corporation, with its principal place of business located at 1690 South Congress Avenue, Suite 201, Delray Beach, Florida 33445 (collectively "PSID/MFS"), or “TEAMMATE".  Boeing and TEAMMATE are referred to herein collectively as the “Parties” or individually as a “Party.”

RECITALS

 

	
A.

	
WHEREAS, the Department of Homeland Security

	
(“DHS” or “the Customer,”) is expected by the Parties to issue Solicitation # HSHQDC-12-R-00001   (“Solicitation”) for the acquisition of goods and services related to the BioWatch Gen-3 Autonomous Biodetection System, Phase II (“Program”);

	
B.

	
WHEREAS, Teammate has developed propriety bio detector technology and the product known as the MBAND product (“Product”), which is uniquely suitable for fulfilling the Program Solicitation  and ensuing  Contract(s) (as defined below).

	
C.  

	
WHEREAS, Boeing wishes to engage Teammate to provide the Product for use in fulfilling the Solicitation and other offerings within the scope defined in Statement of Work (Attachment 1) to complement Boeing’s capabilities in the areas of data integration & analytics, predictive analysis & decision support, network architecture and design, manufacturing processes, and large-scale system deployment.

	
D.

	
WHEREAS, Boeing expects to submit a proposal in response to the Solicitation and as contemplated in the Federal Acquisition Regulation (“FAR”) 9.601(2), the Parties wish to form a “Contractor Team Arrangement” with the understanding that, in the event that a subsequent contract is awarded to Boeing (“Prime Contract”), Boeing shall be the Prime Contractor and, subject to the provisions of this Agreement (including any conditional opportunity to compete requirements) and the Parties’ agreement on the terms of a Subcontract, TEAMMATE shall be a Subcontractor;

	
E.

	
WHEREAS, Boeing as the Prime Contractor and TEAMMATE have agreed to the division of responsibilities as set forth in Attachment 1 (Statement of Work); and

	
F.

	
WHEREAS, Boeing and TEAMMATE have determined that by teaming their unique and complementary capabilities they could provide a superior management, technical and cost effective response to the Solicitation.

NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, other good and valuable consideration, and subject to the conditions and covenants contained herein, the Parties agree as follows:

ARTICLE 1.                                DEFINITONS; INTERPRETATION

 

	
1.1

	
Definitions. In this Agreement, unless the context indicates otherwise, the following terms shall have the meanings stated herein:

	 	
a)

	
“Assay” and “Reagent” means the reaction mixture, including primers, master mix, and buffers, enabling M-BAND to detect biological agents (bacteria, viruses and biological toxins) including without limitation, all confidential, proprietary, and other Intellectual Property Rights, trade secrets, and Information necessary to operate, validate, utilize, or produce the Assay and/or Reagent for purposes of this Agreement and any other Agreement between the Parties.

BOEING PROPRIETARY

  

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Boeing/PositiveID SM Teaming Agreement No. TA-2012-00335

 

	
  

	
b)

	
“Background Intellectual Property” means all Intellectual Property (including Proprietary Information and the Intellectual Property rights therein) owned by or licensed to a Party, including its subcontractors hereunder, created prior to or outside of this Agreement, that is introduced to or disclosed by the Party in connection with and for the purposes of this Agreement and/or needed to practice the Foreground Intellectual Property.

 

	
  

	
c)

	
“Effective Date” has the meaning set forth in Article 30 (Effective Date).

 

	
  

	
d)

	
Foreground Intellectual Property” means the Intellectual Property developed by the Parties, either solely or jointly, in the course of undertaking or performing, or otherwise arising from, work performed under this Agreement or a Subcontract implemented under this Agreement.

 

	
  

	
e)

	
“Intellectual Property” means all Proprietary Information, know-how, Inventions; all technical data including, but not limited to source code, drawings, designs, specifications, know how, process information, developments, discoveries, inventions, formulae, techniques, technical reports and all other documented information and the like; and all computer software and related documentation including that which can be obtained from examination or reverse engineering of any such item.  “Intellectual Property” also includes all common law and statutory rights to the foregoing throughout the world, including but not limited to, patents, copyrights, trade secrets, mask work registrations, and the like.

 

	 	
f)

	
“Invention” means any invention or discovery, or improvement thereof, that is or may be patentable or otherwise protectable under title 35 of the U.S. Code.

 

	
  

	
g)

	
“Person” includes any individual, corporation, company, corporate or incorporated body of persons, firms, business, institution, any state or agency thereof or other legal entity.

 

	
  

	
h)

	
“Prime Contract” has the meaning set forth in Recital D.

 

	 	
i)

	
"Product" has the meaning set forth in Recital B and the term “Licensed Product(s)” defined in the License Agreement.

 

	 	
j)

	
“Program” has the meaning set forth in Recital A.

 

	
  

	
k)

	
“Proprietary Information” means all information related to the purposes of this Agreement and/or any Subcontract that is identified by the disclosing Party as proprietary or confidential, or is disclosed under circumstances reasonably indicating that such information is proprietary or confidential to the disclosing Party, including, but not limited to, technical information in the form of designs, concepts, requirements, specifications, software, interfaces, components, processes, or the like, and business, management and financial information.

 

	 	
l)

	
“Subcontract” has the meaning set forth in Articles 3Article 6 (Subcontract).

 

	
  

	
m)

	
“Technical Representative” has the meaning set forth in Article 9 (Technical Representatives).

 

	
  

	
n)

	
“Third Party” or “third-party” or “non-party” means any person or entity other than Boeing and TEAMMATE.

 

	
1.2

	
Interpretation.  Unless the context indicates otherwise: (a) references to an “Article,” “Section”, or “Paragraph”, shall be references to an Article, Section, or Paragraph of this Agreement; (b) references to “days” mean calendar days; (c) words incorporating the singular shall include the plural and vice versa; and (d) references to “writing” or “written” includes a reference to any communication effected by mail, e-mail, facsimile transmission, instant message, text message, or such other means of electronic communication.

ARTICLE 2.   WORKING TOGETHER & EXCLUSIVE REQUIREMENT

 

	
2.1

	
Working Together.  The Parties agree to cooperate and work together to: a) submit a proposal in response to the Solicitation; b) assure an appropriate joint proposal effort and interaction between the work of Boeing and TEAMMATE (including, but not limited to work regarding the necessary areas of negotiations, required marketing, live test demonstrations, and presentations to the Customer); and c) to secure and receive the award of the Prime Contract to Boeing under the Program.  Boeing shall act as Prime Contractor and, subject to the provisions of this Agreement (including any competition or conditional opportunity to compete requirements) and the Parties’ mutual agreement on the terms of a Subcontract, TEAMMATE shall act as a first-tier Subcontractor to Boeing under the Program in accordance with Article 6 (Subcontract).  The Parties agree that their failure to agree on the terms of the Subcontract shall not constitute a breach of contract, but shall be grounds for termination of the Agreement in accordance with Article 11 (Term and Termination).

BOEING PROPRIETARY

  

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Boeing/PositiveID SM Teaming Agreement No. TA-2012-00335

 

	
2.2

	
Exclusive Requirement.  It is expected that the Parties will need to exchange proprietary business and technical information in accordance with the provisions of this Agreement in order to more effectively compete as part of the Boeing team for the Program.  In consideration thereof, for the Term of this Agreement, TEAMMATE (including its affiliates) will not: a) actively participate in other team efforts that are competitive to this Agreement, b) compete independently for work covered by the Program, or c) have any discussions or negotiations with any other Party regarding the Product or the Solicition, including without limitation the Product’s  purchase, use, or license, whether directly, or via the merger, acquisition, change of control, consolidation, dissolution, operation of law, transfer, or any other manner, whether voluntary or involuntary, of MFS or PSID.

	
2.3

	
TEAMMATE shall not, during the Term of this Agreement, undertake any action or communicate any information to any Third Party that may adversely affect Boeing’s work, or hinder the competitiveness of the Boeing team effort.

ARTICLE 3.                  RESPONSIBILITIES OF THE PARTIES

 

	
3.1

	
The Parties’ respective responsibilities in connection with the work under this Agreement shall be as set forth in the Statement of Work appended as Attachment 1 (“Statement of Work”).

	
3.2

	
As Subcontractor, TEAMMATE will:

 

	
  

	
3.2.1

	
Provide Boeing the exclusive right to use and sell the Product for the Solicitation, Biowatch Gen 3 Contract, and any successor Contract under the terms of the License Agreement that shall, among other things, set forth the mutually agreeable comprehensive Market Territory, and establish a manufacturing partner to produce the Product;

	
  

	
3.2.2

	
Place into escrow all Intellectual Property, documents, and definitions relating to Products, including without limitation Assays/Reagents requisite for the operation of the M-BAND Product and Services, including without limitation Confidential and Proprietary Information, Source Code, Patents and Trade Secrets, and to update the escrow account quarterly. The escrow will be placed, at TEAMMATE’s expense, with an independent third party escrow company selected by the TEAMMATE and reasonably acceptable to Boeing. The Escrow Agreement must be in full force and effect and TEAMMATE may inspect the escrowed materials for compliance with this clause.  The escrowed materials will be available for use and disposition by Boeing for the purposes of this agreement.

BOEING PROPRIETARY

  

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Boeing/PositiveID SM Teaming Agreement No. TA-2012-00335

 

	
  

	
3.2.3

	
TEAMATE will be the exclusive supplier to Boeing of Assays and Reagents under the Agreement.  The Parties will work towards reaching a Subcontract Agreement whereby they mutually agree to pricing and terms regarding such supply.  To the extent that TEAMMATE  meets all applicable supply requirements, provides a reasonable pricing structure, and  barring "Acts of God" or other unforseen natural disasters, governmental or military or national-security related incidents or bankruptcy or insolvency on the part of TEAMMATE, so long as TEAMMATE otherwise meets its performance obligations under this Agreement, any  Subcontract Agreement or other Agreement between the Parties, TEAMMATE shall serve as Boeing's exclusive supplier of Assays and Reagents.  TEAMMATE shall prepare and submit to Boeing, on a schedule agreed to by the Parties updated Assay/Reagent price proposals with TEAMMATE for the Solicitation, Program, Contract, Subcontract, or other Purposes of this Agreement and responsive to the portion of the Solicitation set forth on Attachment 1 (Statement of Work) for which TEAMMATE is responsible and which do not exceed $8,300 per system per month with an annual adjustment of 3%. Submissions will include pricing from competitive quotes based on the quantities and schedules delineated in the any Solicitation or Program or Contract Request for Proposal. In the event that TEAMMATE fails to meet any delivery, price, quantity, or schedule requirements relating to this Agreement, or the Parties fail to mutually agree to pricing and terms regarding Assay and Reagent supply as per this paragraph and Agreement, the Solicitation, or Program, Boeing shall receive a sole and exclusive License Grant to all TEAMMATE’s rights in the Assays and Reagents as a “Licensed Product” per the terms of the License Agreement between the parties, and shall otherwise be free to exercise its rights under the modified License Agreement and this Agreement to use, market, sell, promote, refer, distribute, manufacture, and irrevocably sublicense the escrowed Assay/Reagent, and any Intellectual Property therein, for its own purposes consistent with this Agreement.

	
  

	
3.2.4

	
Prepare and submit to Boeing, on a schedule agreed to by the Parties, technical, management and price proposals which are, in Boeing’s reasonable opinion, competitive and responsive to the portion of the Solicitation set forth on Attachment 1 (Statement of Work) for which TEAMMATE is responsible;

	
  

	
3.2.5

	
Provide pricing information to Boeing, in sufficient time prior to the expected date of Boeing’s proposal to its Customer and in sufficient detail to: (i) be responsive to the sections of the Solicitation that apply to the TEAMMATE’s portion of the Statement of Work, (ii) permit the negotiation of a Prime Contract with the Customer, and (iii) permit the negotiation and definitization of a subcontract (“Subcontract”) between the Parties in accordance with Article 6 (Subcontract).  If and to the extent that Boeing uses or relies on Seller’s proposed pricing in Boeing’s prime contract proposal, Seller shall be bound by and shall honor (and/or accept) such prices when negotiating for a subcontract(s) under Article 6;

	
  

	
3.2.6

	
Provide current, accurate and complete certified cost and pricing data, with sufficient support information, to Boeing be included as part of Boeing’s proposal submittal in all instances where Boeing is required by the Solicitation or Prime Contract, or is otherwise requested or required by the Customer to submit such data.  Upon request of Boeing, at the conclusion of negotiations, TEAMMATE will provide a Certificate of Current Cost and Pricing Data, executed by an authorized official of TEAMMATE certifying that the cost and pricing data contained in such proposal was accurate, complete and current as of the date of the TEAMMATE’s price agreement with Boeing;

	
  

	
3.2.7

	
Provide to Boeing all appropriate forms and certifications required under the Solicitation;

	
  

	
3.2.8

	
Provide qualified personnel who will cooperate in drafting the proposal;

	
  

	
3.2.9

	
Ensure the availability of technical and management personnel to assist Boeing, if requested, in any discussions or negotiations with the Customer directed toward obtaining the award of the Program; and

	
  

	
3.2.10

	
Provide non-Proprietary Information, upon request, on their relevant technical capabilities (excluding pricing), quality control and quality assurance systems, ISO compliance, accounting, estimating and billing systems adequacy, past performance, purchasing system approval, and other information relevant to determining if TEAMMATE is responsive, responsible, technically acceptable, and the best value subcontractor, suitable for inclusion in the Boeing proposal.

BOEING PROPRIETARY

  

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3.2.11

	
Support the additional activities and perform the supplemental tasks commensurate with those undertaken by Boeing that reasonably may be necessary for the preparation and submittal of Boeing’s proposal, risk reduction, or securing Boeing’s receipt of the Prime Contract.

	
3.3

	
As Prime Contractor, Boeing will, unless precluded by any restrictions on classified materials:

 

	
  

	
3.3.1

	
Furnish TEAMMATE all solicitations, amendments and modifications that are issued in connection with the Program and relate to the TEAMMATE’s portion of the Statement of Work;

	
  

	
3.3.2

	
Inform TEAMMATE of significant events, dealings, and milestones that relate to the TEAMMATE’s portion of the Statement of Work;

	
  

	
3.3.3

	
Prepare and submit to the Customer proposals, bids or other submissions in response to the Solicitation;

	
  

	
3.3.4

	
Identify TEAMMATE as a company allowed to compete for that portion of the work set forth in Attachment 1 (Statement of Work);

	
  

	
3.3.5

	
Maintain on behalf of the team, exclusive responsibility for all contacts and communications with the Customer relating to the Program.  In the event it becomes desirable for TEAMMATE to contact the Customer concerning the Program, TEAMMATE will discuss and coordinate its plans to contact the Customer with Boeing prior to making such contact; and

	
  

	
3.3.6

	
Have responsibility for the preparation of the proposal and will have the sole discretion to determine the adequacy of the proposal and will submit its proposal to the Customer as the Prime Contractor.  Boeing, through coordination with TEAMMATE, will use reasonable efforts to ensure that TEAMMATE’s data is adequately portrayed in all documents submitted to the Customer and Boeing will not reduce the prices proposed by TEAMMATE for its work without the prior written approval of TEAMMATE.

ARTICLE 4.                   NO RIGHT TO AUDIT

 

Nothing in this Agreement will be construed as giving TEAMMATE  the right to audit the books and records of Boeing.  Boeing shall have the right to audit TEAMMATE books and records  as required by the terms of any Boeing Request for Proposal, resultant Subcontract, or other agreement between Boeing and TEAMMATE.

ARTICLE 5.                   NO SHARING OF PROFITS OR LOSSES

 

Subject to Article 18 (Limitation of Liability), nothing in this Agreement shall be construed as providing for the sharing of profits or losses arising out of the efforts of either or both Parties.

ARTICLE 6.                   SUBCONTRACT

 

	
6.1

	
The Parties agree that any Subcontract(s) that might be awarded by Boeing to TEAMMATE will be subject to all applicable laws and regulations and will include those provisions: (i) set forth in the Prime Contract that are required by the customer, government or the FAR (or its supplements) to be flowed-down to the first-tier subcontractor; and/or (ii) that are required for Boeing to satisfy its obligations under the Prime Contract and related subcontracts.

	
6.2

	
Upon execution of this Agreement, the Parties shall promptly enter into negotiations relative to the terms and conditions that will be reflected in the individual Subcontract(s), as may be awarded to TEAMMATE by Buyer on the basis of: 1) the requirements contained in any Multiple Award Indefinite Delivery Indefinite Quantity (IDIQ) Task Order Releases awarded to Boeing under the Prime Contract, and 2) Boeing’s determination that TEAMMATE has the required capabilities and/or availability of qualified resources.  The contract type of any such individual Subcontract will be determined by Boeing on the basis of the work content and contract type of the Prime Contract IDIQ Task Order Release to Boeing.  Such Subcontract(s) shall include the applicable version of Boeing’s General Terms and Conditions (GP-2 or GP-3), H900 Additional General Terms and Conditions, as well as other applicable Boeing Special or General Terms and Conditions, all as further discussed under Paragraph 6.3 below.

 

BOEING PROPRIETARY

  

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6.3

	
Boeing’s standard terms and conditions for subcontracts are available for review at: http://www.boeing.com/companyoffices/doingbiz/terms_conditions/index.html .  TEAMMATE’s attention is specifically directed to Boeing’s Terms and Conditions, including the following:

	
  

	
i.

	
GP-2 General Terms and Conditions for Fixed Price Services Contract, Revised 04/15/2012 and GP-3 General Terms and Conditions for Labor Hour/Time & Material, Revised, Revised 04/12/2012 (attached hereto as Exhibit A)

	 	
ii.

	
H900 Additional General Terms and Conditions, Revised 07/24/2012 (attached hereto as Exhibit B)

	 	
iii.

	
Other specific Boeing Special Provisions or Boeing Defense, Space & Security (BDS) Common Terms and Conditions(attached hereto as Exhibit C).

	 	
iv.

	
The teammate will be notified if any of the applicable clauses are revised between now and the date of any resulting Subcontract(s).

ARTICLE 7.                  DISCLOSURE AND PROTECTION OF PROPRIETARY INFORMATION

 

	
7.1

	
The Parties anticipate that they will provide each other with information reasonably required to support the performance by the other Party of their obligations hereunder.  Each Party agrees to use the Proprietary Information of the other Party in accordance with the terms of this Agreement solely for the purposes of this Agreement and/or any resultant Subcontract or Prime Contract.  Any transfer of Proprietary Information between the Parties shall not be construed as a grant of any right or license to the receiving Party with respect to the information delivered or otherwise made available to the disclosing Party, except as expressly set forth herein or in the License Agreement, as mutually agreed to and executed by the Parties.  The restrictions on disclosure or use of Proprietary Information by TEAMMATE shall apply to all materials derived by TEAMMATE or others from Boeing's Proprietary Information.  Boeing shall not be required to disclose any particular item of its Proprietary Information or to make available any software or data other than as explicitly called out in this Agreement.

	
7.2

	
The Parties have been exchanging Proprietary Information under the terms of Proprietary Information Agreement (“PIA”) 2011-7677 dated 9/27/2011 and may continue to exchange Proprietary Information under the PIA during the Term of this Agreement for matters unrelated to the Program or this Agreement.  For all information provided by the Parties to support the performance of this Agreement, the Proprietary Information provisions of this Agreement shall govern such confidential, proprietary, and trade secret information and materials.

	
7.3

	
Each Party agrees that any Proprietary Information delivered or communicated to one another in connection with this Agreement shall be kept confidential by the receiving Party and shall not be disclosed to any third party, unless a specific written release is obtained from the disclosing Party.  Each Party agrees: (i) to make the other Party’s Proprietary Information available only to those employees who require access to it in the performance of this Agreement, a resultant Subcontract, or a Prime Contract; and (ii) to require such employees to protect such confidentiality under written agreement terms at least as restrictive as this Agreement.

	
7.4

	
If a receiving Party uses contract labor, consultants, or subcontractors in the performance of this Agreement or a resultant Subcontract, and the receiving Party desires to disclose the other Party’s Proprietary Information to such personnel or subcontractors who have a need to know such Proprietary Information to accomplish the purposes of this Agreement, release and disclosure are permitted to such contract labor, consultants, or subcontractors who have a need to know such Proprietary Information for the limited purpose of performing under this Agreement or a Subcontract, provided that such contract labor, consultants, and/or subcontractors have entered into separate non-disclosure agreements directly with the receiving Party with terms at least as restrictive as those governing the use of Proprietary Information in this Agreement, and disclosures are made in accordance with the terms of such agreements.  The receiving Party shall be responsible, and liable to the disclosing Party, for any failure of the receiving Party’s employees, contract labor, consultants, or subcontractors receiving Proprietary Information under this Agreement to comply with the terms of this Agreement.

 

BOEING PROPRIETARY

  

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7.5

	
Each Party agrees that the obligations of confidentiality contained herein shall not attach to information that the receiving Party demonstrates:

	
  

	
i.

	
Is publicly available prior to the date of this Agreement or becomes publicly available thereafter through no wrongful act of the receiving Party;

	
  

	
ii.

	
Was known to the receiving Party prior to the date of the disclosure or becomes known to the receiving Party on a non-confidential basis thereafter from a Third Party having a bona fide right to disclose the information;

	
  

	
iii.

	
Is disclosed by the receiving Party with the prior written approval of the disclosing Party;

	
  

	
iv.

	
Is independently developed by the receiving Party without use of or reference to the disclosing Party’s Proprietary Information; and

	
  

	
v.

	
The receiving Party is obligated to produce pursuant to an order of a court of competent jurisdiction, but only with respect to production to said court, provided that the receiving Party promptly notifies the disclosing Party and cooperates reasonably with efforts to contest or limit the scope of such order.

	
7.6

	
The U.S. Government sometimes requires legends or markings on information, such as classification markings or legends concerning export control under ITAR.  This Agreement does not change those requirements.  But this Agreement does take precedence over specific legends or statements that the disclosing Party marks on Proprietary Information that conflict with this Article 7.

	
7.7

	
A receiving Party will, upon written request or termination of this Agreement (in the event that the Parties do not enter into a resultant Subcontract), use reasonable efforts to destroy all received Proprietary Information, including copies, then in its possession or control.  Alternatively, a receiving Party may use reasonable efforts to return all such Proprietary Information and copies to the disclosing Party.  A receiving Party may retain one archival copy of received Proprietary Information.

	
7.8

	
Notwithstanding the survival of the terms of this Article 7 after expiration or early termination of this Agreement, in the event that the Parties enter into a resultant Subcontract, any Proprietary Information disclosed between the Parties under this Agreement shall be governed, maintained and protected in accordance with this Agreement and any Proprietary Information disclosed between the Parties under a resultant Subcontract shall be governed, maintained, and protected solely in accordance with the terms and conditions of that Subcontract.

ARTICLE 8.                  INTELLECTUAL PROPERTY RIGHTS

 

	
8.1

	
Each Party represents and warrants that it is the owner or licensee of its pre-existing intellectual property that shall be exchanged pursuant to this Agreement.

	
8.2

	
All Background Intellectual Property disclosed by one Party to the other Party in the course of this Agreement shall remain the property of the disclosing Party or such Party’s licensors.  Each Party hereby grants to the other, for the duration of the Agreement only, a limited, non-exclusive, royalty-free license to use, reproduce, modify, and prepare derivative works based upon that Party’s disclosed Background Intellectual Property solely for the purposes of the Agreement and for the benefit of the disclosing Party and the furtherance of the relationship between Boeing and TEAMMATE.  Any additional rights needed to Background Intellectual Property for a resultant Subcontract, which are not provided for herein, shall be addressed in the terms of the License Agreement, as mutually agreed by the Parties, and in the applicable resultant Subcontract.  Except for licenses defined in Article 8 herein, the License Agreement, and any other license set forth herein or in a resultant Subcontract, each Party agrees that it will not use the other Party’s Background Intellectual Property for any purpose other than for the benefit of the disclosing Party and the furtherance of the relationship between Boeing and TEAMMATE as expressly permitted herein or in the applicable resultant Subcontract.

BOEING PROPRIETARY

  

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8.3

	
No Party will have any obligation to provide Background Intellectual Property except as expressly identified in the SOW, or as documented and provided by one Party to the other at any time during the term of a resultant Subcontract.  Except for licenses defined in Article 8 herein, the License Agreement, and any other license set forth herein or in a Subcontract, any other use of a Party’s Background Intellectual Property by the other Party for any other purpose, including commercial use, shall be subject to separate negotiation.

	
8.4

	
Inventions.  If during the performance of this Agreement and/or a resultant Subcontract inventions result, the following shall apply:

	 	
8.4.1

	
INDEPENDENT INVENTIONS:  As between Boeing and TEAMMATE, each Invention conceived or first actually reduced to practice in the performance of this Agreement and/or a resultant Subcontract by one or more employees of one Party (including other non-parties) and no employees of the other Party, shall be the property of the Party whose employee or employees made the Invention (“Independent Invention”).  Notwithstanding the foregoing, inventions that would be deemed Independent Inventions under the foregoing but that are modifications or derivative works of the Background Intellectual Property of the non-inventing Party shall not be deemed Independent Inventions and the inventors of such inventions hereby assign all right, title, and interest in such inventions to the Party who owns the Background Intellectual Property upon which such invention is a modification or derivative work thereof.

	 	
8.4.2

	
JOINT INVENTIONS:  Any Inventions conceived or first actually reduced to practice in the performance of this Agreement and/or resultant Subcontract jointly by employees of both Parties shall be jointly owned by both Parties in equal, undivided shares (“Joint Invention”). Patent applications covering such Joint Inventions shall be filed by attorneys mutually acceptable to both Parties and the cost shall be equally shared.  If one of the Parties does not desire to file a patent application covering a Joint Invention in any particular country or to equally share in the expenses, the other Party shall have the right, at its own expense, to file such application and shall have control over the prosecution of such application and maintenance of any patent that may be issued, including the sole right to abandon such application or patent at any time.  Any patent issuing from such application filed by one Party without equal expense sharing by the other Party will be solely owned by the Party who paid for the application and maintenance of such patent, and the non-contributing party hereby assigns all right, title, and interest in such application to the Party electing to pursue and fund such patent.

 

	 	
8.4.3

	
INVENTION DISCLOSURES AND REPORTS.  For any of TEAMMATE’s Independent Inventions, TEAMMATE shall furnish to Boeing a written disclosure of each such invention within three (3) months after conception or first actual reduction to practice, whichever occurs first under this Agreement.  This disclosure shall be sufficiently complete in technical detail to convey a clear understanding of the nature, purpose, operation, and to the extent known, the physical, chemical or electrical characteristics of the invention to one skilled in the art to which the invention pertains together with a written statement making an election as to whether a United States patent application claiming the invention will be filed by or on behalf of TEAMMATE. If to the best of TEAMMATE’s knowledge and beliefs, no Independent Invention has been conceived and/or first actually reduced to practice under this Agreement, TEAMMATE shall so certify to Boeing quarterly.

	
  

	
8.4.4

	
DOMESTIC FILING.  Subject to any TEAMMATE obligations and responsibilities under the DFARS Patent Rights clause flowed down within a resultant Subcontract, in connection with each of TEAMMATE’s Independent Inventions referred to in Paragraph 8.3.4 above:

	 	
8.4.4.1

	
If TEAMMATE has elected to file a United States patent application claiming such invention, TEAMMATE shall within six (6) months after the election file or cause to be filed such application in due form, shall notify Boeing of such filing, and deliver to Boeing, within two (2) months after such filing or within two (2) months of the first written disclosure of such invention if a patent application previously has been filed, a duly executed license, in triplicate, fully confirmatory of all rights to which Boeing is entitled under this clause; if TEAMMATE does not file or cause to be filed such application, TEAMMATE shall so notify Boeing within the six (6) month period.

 

BOEING PROPRIETARY

  

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8.4.4.2

	
If TEAMMATE has elected not to file or cause to be filed a United States patent application claiming such invention, or has made the contrary election but not filed or caused to be filed such application within six (6) months after the election, TEAMMATE shall:

	 	
i.

	
Inform Boeing in writing, as soon as practicable, of the date and identity of any public use, sale, or publication of such invention made by or known to TEAMMATE or of any contemplated publication by TEAMMATE; and

	 	
ii.

	
Upon request, convey to Boeing TEAMMATE’s entire right, title and interest in such invention by delivering to Boeing such duly executed instruments (prepared by Boeing) of assignment and application, and such other papers as are deemed necessary to vest in Boeing the entire right, title and interest aforesaid, and the right to apply for and prosecute a patent application covering such invention throughout the world, subject to the reservation of a non-exclusive and royalty-free license to TEAMMATE.

	 	
8.4.4.3

	
TEAMMATE shall furnish promptly to Boeing upon request an irrevocable power of attorney to inspect and make copies of each United States application filed by or on behalf of TEAMMATE covering any such invention.

	 	
8.4.4.4

	
In the event TEAMMATE, or those other than Boeing deriving rights from TEAMMATE, elects not to continue prosecution of any such United States patent application filed by or on behalf of TEAMMATE, TEAMMATE shall so notify Boeing not less than thirty (30) days before the expiration of the response period, and upon written request, deliver to Boeing such duly executed instruments (prepared by Boeing) as are deemed necessary to vest in Boeing the entire right, title, and interest in such invention and the application, subject to the reservation as specified in Paragraph 8.3.5.2(ii) of this clause.

	 	
8.4.5

	
FOREIGN FILING.  In connection with each of TEAMMATE’s Independent Inventions referred to in Paragraph 8.3.4 above, Boeing may elect to file an application for a patent in any foreign country not intended to be filed in by TEAMMATE in which case Boeing will retain title and will grant TEAMMATE an irrevocable, non-exclusive and royalty-free license to practice and have practiced the invention in such country.

	 	
8.4.6

	
BOEING’S RIGHT TO ASSIGN.  Boeing shall have the right to assign any or all of the rights and licenses, and whenever the word “Boeing” is used in this Article it shall be deemed to include Boeing and its successor and assigns.

	 	
8.4.7

	
EMPLOYEE AGREEMENTS.  TEAMMATE agrees to obtain the necessary agreements with personnel assigned to this Agreement to enable the grant and/or performance of all rights and obligations to which Boeing is entitled under this and the other Attachments to the Agreement.

	 	
8.4.8

	
BOEING FUNDING.  It is also agreed that should Boeing use its private funds to fund such a resultant Subcontract with TEAMMATE, Boeing’s standard I010 Intellectual Property Rights clause shall govern the Subcontract.  Such clause is available for review at: http://www.boeingsuppliers.com/idscommon/clauses/clause_i.htm.  Where the I010 Intellectual Property Rights clause and Article 8 et al. herein conflict, the I010 Intellectual Property Rights clause shall take precedent to the extent it expands the rights of Boeing.

ARTICLE 9.                  TECHNICAL REPRESENTATIVES

 

	
9.1

	
For the Term of this Agreement, each Party will appoint one employee to act as its technical representative with respect to coordinating the identification and/or discussions of the Program or Solicitation under this Agreement (“Technical Representative”).

	
9.2

	
The Technical Representative for each Party is as follows:

	 	
i.

	
The Technical Representative for Boeing:

Name: Tom Austin

 

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Tel: 714-896-3647

Email: Tom.Austin@boeing.com

	
  

	
ii.

	
The Technical Representative for TEAMMATE:

Name: Lyle Probst

Tel: 925-474-2189

Email: lprobst@microfluidic systems.com

	
9.3

	
A Party may change or otherwise replace its Technical Representative by written notice to the other Party in accordance with Article 15 (Notices) and shall provide the name and contact information for its replacement Technical Representative.

	
9.4

	
Each Technical Representative shall be responsible to its respective Party for:

	
  

	
i.

	
Managing, overseeing, or coordinating that Party’s relationship with the other Party;

	
  

	
ii.

	
Identifying and seeking to resolve any issues that may arise between the Parties, including referring each identified issue to the appropriate focal within its respective organization for resolution, in accordance with Article 25 (Dispute Resolution);

	
  

	
iii.

	
Seeking resolution of issues arising out of this Agreement; and

	
  

	
iv.

	
Raising any actual or potential conflicts of interest identified by the Technical Representative(s) as a standard agenda item at review meetings between the Parties and discussing the terms of any precautions necessary to mitigate or avoid any conflict so identified.

	
9.5

	
The Technical Representatives are not empowered to address the contractual relationship between the Parties.  Only the authorized procurement agents identified in Article 15 (Notices) can make contractual commitments on behalf of either Party, or provide or receive any written notices required by this Agreement.

ARTICLE 10.                PUBLICITY

 

	
10.1

	
Without Boeing’s prior written approval (which includes the approval of both the content and timing of such release), TEAMMATE shall not release any publicity, advertisement, news release or denial or confirmation of same regarding this Agreement or in connection with the subject matter of this Agreement.

	
10.2

	
Except for the Prime Contract proposals by Boeing, no name, trade name, domain name, service mark, logo, and/or trademark of a Party (nor the name of any of the other Party’s personnel, customers, or agents) may be used by the other Party for any purpose without the prior written approval of such Party.

	
10.3

	
Notwithstanding the foregoing, a copy of this Agreement and the content of this Agreement may be provided by Boeing, at Boeing’s sole discretion, to the Customer and/or the appropriate U.S. Government representatives.

ARTICLE 11.                TERM AND TERMINATION

 

	
11.1

	
Term.  Subject to the provisions allowing for earlier termination, this Agreement shall automatically expire, without further notice, one (1) year from the Effective Date (the “Term”).  Neither Party has any obligation of any kind to renew or extend this Agreement, except that this Agreement shall be extended by mutual written agreement for a reasonable period of time: (a) for completion of pre-contract procurement activities by the Customer, including review and approval of the Prime Contract award if such have been initiated but not completed by the termination date of this Agreement; or (b) to secure the Customer’s Contracting Officer consent for the placement of TEAMMATE’s Subcontract, to the extent such approval is required by the Prime Contract.  Any renewal or extension of this Agreement must be in writing and signed by both Parties in accordance with Article 28 (Amendments) to be effective.  No course of performance or prior dealings or usage of trade will be effective to renew or extend this Agreement.  Any other transaction between the Parties related to the Program, Solicitation or the resultant Subcontract that occurs after the termination or expiration of this Agreement shall not be construed as a waiver of this provision or a renewal or extension of this Agreement; instead, such transaction shall be deemed to be a separate transaction terminable at will by either Party, with or without cause or in accordance with the terms of that separate transaction.

 

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11.2

	
Termination.  By written notice, this Agreement may be terminated upon the earliest of the following occurrences:

 

	
  

	
11.2.1

	
Boeing’s receipt of written notice from the Customer that the Program, or  all RFPs and/or Prime Contracts envisioned by the Program has/have been canceled or terminated;

	
  

	
11.2.2

	
Boeing’s receipt of written notice from the Customer that the Program or all RFPs and/or Prime Contracts envisioned by the Program has/have been awarded to a party other than Boeing;

	
  

	
11.2.3

	
Boeing’s receipt of written notice from the Customer that Boeing has been eliminated from consideration as a prime contractor;

	
  

	
11.2.4

	
Boeing’s determination, in its sole discretion, to remove itself from consideration as a prime contractor;

	
  

	
11.2.5

	
Award of the Prime Contract  or all RFPs and Prime Contracts envisioned by the Program to Boeing, and execution by both Parties of a definitized Subcontract with TEAMMATE, in which case the terms of the Subcontract shall govern the relationship between the Parties and shall supersede the terms of this Agreement;

	
  

	
11.2.6

	
Boeing’s receipt of notice from the Customer that the Customer has: (i) disapproved TEAMMATE as a Subcontractor to Boeing on the Program or related efforts; (ii) disapproved TEAMMATE’s performance, cost, or technical proposal; (iii) disapproved part or all of the Attachment 1 (Statement of Work) as a “Buy” in the proposal or Prime Contract “Make or Buy Plan;” (iv) eliminated part or all of the Attachment 1 (Statement of Work) from the RFP; (v) not awarded part or all of the Attachment 1 (Statement of Work) as part of the Prime Contact; (vi) terminated part or all of the Attachment 1 (Statement of Work);  or (vii) otherwise provided clear direction that the TEAMMATE is not to be used for the Attachment 1 (Statement of Work); and in all cases, Boeing has determined in good faith that the terms of the contemplated subcontract between Boeing and TEAMMATE cannot be reasonably altered or changed to effect approval by the Customer;

	
  

	
11.2.7

	
A reasonable determination by Boeing that TEAMMATE’s performance creates unacceptable risk in the areas of cost, quality or schedule, or that TEAMMATE is unprepared to adequately execute its portion of the Prime Contract responsibilities set forth in the Attachment 1 (Statement of Work), which is either incapable of rectification or is not rectified within ten (10) days from Boeing’s written notice thereof to TEAMMATE;

 

	
  

	
11.2.8

	
If TEAMMATE is suspended, debarred or listed in the Excluded Parties List System (EPLS); or loses a required Facility Clearance;

	
  

	
11.2.9

	
Subject to Article 21 (Force Majeure), if TEAMMATE: (i) is unable or fails to perform; (ii) fails to make progress (so as to endanger performance of this Agreement); or (iii) is in breach of any material term or commits any other material breach of this Agreement; and in either of these three circumstances, within ten (10) days after receipt of Boeing’s written cure notice specifying the failure, does not adequately cure the failure or the breach to Boeing’s reasonable satisfaction;

	 	
11.2.10

	
In the event of TEAMMATE’s bankruptcy, suspension of business, insolvency, appointment of a receiver for TEAMMATE's property or business, or any assignment, reorganization or arrangement by TEAMMATE for the benefit of its creditors.

	 	
11.2.11

	
The failure of the Parties to agree, after good faith attempts to work together, regarding the price, technical approaches, business strategy or other material aspects of TEAMMATE's proposal(s) and Boeing reasonably concludes that TEAMMATE's submitted proposal: (i) would make the Boeing proposal non-competitive or non-responsive or (ii) threatens to jeopardize Boeing’s ability to succeed in the Prime Contract competition;

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11.2.12

	
The inability of the Parties negotiating in good faith to finalize or definitize the terms of the Subcontract within sixty (60) days from the date of the commencement of negotiations with TEAMMATE;

	 	
11.2.13

	
If either Party is prohibited from participating in this Teaming Agreement by a conflict of interest, assignment, anti-trust issue, or any other conflict, which (in either circumstance) cannot be mitigated by the conflicted Party; or

	 	
11.2.14

	
Mutual consent of both Parties by execution of a rescission agreement.

	
11.3

	
Impact of Termination.  Subject to Article 18 (Limitation of Liability), in the event of a termination as provided above in Section 11.2 (Termination):

 

	
  

	
11.3.1

	
The Parties shall continue the work not terminated.

	
  

	
11.3.2

	
The termination of this Agreement shall not affect any on-going Subcontract established under this Agreement prior to such termination and which has not been terminated in accordance with the terms of that Subcontract.  Notwithstanding the termination of the Agreement, the incorporated terms and conditions of the Agreement shall continue to apply to Subcontracts still in existence as of the termination date as if the Agreement had not been terminated.

	
  

	
11.3.3

	
Each Party shall return to the owning or disclosing Party (or at such owning or disclosing Party’s written instruction to destroy) all Proprietary Information and all Background Intellectual Property (excepting the surviving terms of Article 8(Intellectual Property Rights) or unless otherwise provided in a separate Subcontract or License Agreement) of the other Party, and shall certify in writing that it has done so in full, and that no copies or parts of any Proprietary Information or such Background Intellectual Property of such owning Party or disclosing Party remain in its possession or control.

	
  

	
11.3.4

	
Without prejudice to the generality of Article 8(Intellectual Property Rights), the Parties shall disclose to each other the Foreground Intellectual Property developed in the performance of or arising from each research project undertaken pursuant to a Subcontract, and the terms and conditions of the Subcontract  for each research project shall continue to apply to the Parties with respect to ownership, use and licensing rights in the Foreground Intellectual Property developed in the performance of or arising from such research project.

	
11.4

	
Survival.  Notwithstanding the foregoing, the following Articles, Sections, and Paragraphs shall survive expiration or earlier termination of this Agreement:

 

Article 7             Disclosure and Protection of Proprietary Information

Article 8             Intellectual Property Rights

Article 10           Publicity

Article 11           Term and Termination

Article 14           Governing Law

Article 15           Notices

Article 18           Limitation of Liability

Article 23           Compliance with Laws

Article 24           Export/Import Regulations

Article 25           Dispute Resolution

 

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ARTICLE 12.                RELATIONSHIP

 

	
12.1

	
Independent Contractors.  It is expressly understood that both Boeing and TEAMMATE are, and shall remain at all times, independent contractors pursuant to this Agreement.

	
12.2

	
No Corporation, Partnership, or Joint Venture.  The purpose of this Agreement is to form a “Contractor Team Arrangement” as provided in FAR 9.601(2), nothing in this Agreement is intended to or shall be deemed to constitute, create, give effect to, or otherwise recognize a joint venture, partnership, agency, trust, employment relationship, permanent association, or formal business entity of any kind (including statutory, under FAR 9.601(1), or at common law) between the Parties; and the rights and obligations of the Parties shall be limited to those rights and obligations expressly set forth herein.

	
12.3

	
No Agent or Representative.  Unless otherwise agreed to by the Parties in writing, neither Party shall:

	 	
i.

	
have the authority to bind the other Party or incur, create, undertake or assume, directly or indirectly, any express or implied obligation of liability on behalf of the other Party;

	
  

	
ii.

	
commence any legal proceeding in the name of or on behalf of the other Party;

	
  

	
iii.

	
in any way pledge the credit of the other Party;

	
  

	
iv.

	
act or hold itself out as a legal or de facto agent, broker or representative of the other Party; or

	
  

	
v.

	
undertake any action which would tend to mislead anyone in this regard.

ARTICLE 13.                USE OF CONSULTANTS

 

	
13.1

	
The Parties agree to comply with the requirements of the Procurement Integrity Act and any implementing regulations and to require any consultants who are retained by either Party to provide services, information, advice or direction in connection with the work to be performed on such Party’s behalf or in any manner connected with the Solicitation to comply with all reporting, disclosure and certification requirements under the Solicitation and any laws or regulations which now exist or may become effective during the Term of this Agreement.

	
13.2

	
Either Party’s failure to comply with the terms of this Article shall, at the option of the other Party, be deemed to be a material breach of this Agreement.

ARTICLE 14.                GOVERNING LAW

 

This Agreement, together with any attachments thereto, and all disputes, claims or controversies arising out of, in connection with, or relating to this Agreement, including any question regarding its formation, existence, validity, enforceability, performance, interpretation, breach or termination shall be governed by and construed in accordance with the laws of the State of Delaware, but without regard to that state’s conflict of laws rules thereof, provided that if applicable, provisions that have been: (i) incorporated directly from or by express reference to the FAR or FAR supplements; or (ii) flowed down from or relate to a contract with the U.S. Government, shall be construed and interpreted according to the federal common law of government contracts, as enunciated and applied by federal judicial bodies, boards of contract appeals, and quasi-judicial agencies of the federal government.  The Parties agree that the 1980 United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

ARTICLE 15.                NOTICES

 

	
15.1

	
All notices, certifications, or acknowledgments relating to, required, permitted, or given under this Agreement shall be in writing by the duly authorized procurement agent listed below and shall be deemed served and effective upon receipt by the addressee if: a) delivered personally; or b) sent by either prepaid registered mail, reputable overnight commercial courier service, or facsimile transmission.  However, if the notice involves a termination or  an alleged breach of this Agreement, then such notice shall be sent by registered or certified mail, and shall also be promptly communicated by telephone.

 

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15.2

	
Notices to the duly authorized procurement agent (with direct responsibility for the administration of this Agreement) for each Party shall be sent as follows:

15.2.1     Notices to Boeing shall be sent to:

The Boeing Company

7700 Boston Blvd.

Springfield, VA 22153

Mail Code: 7920-1001

Attention: Robert C. Mason

Telephone: 703-270-6786

Facsimile: _562-668-9271

E-mail: Robert.c.mason@boeing.com

15.2.2     Notices to TEAMMATE shall be sent to:

PositiveID Corporation

1690 S. Congress Ave., Suite 200

Delray Beach, FL 33496

Attention: Bill Caragol

Telephone: 561-805-8009

Facsimile: 561-805-8001

E-mail: bcaragol@positiveidcorp.com

ARTICLE 16.   RESERVED

 

 

ARTICLE 17.   ASSIGNMENT

 

Assignment and Delegation.  TEAMMATE shall not transfer or assign (whether voluntary, involuntary, by merger, acquisition, change of control, consolidation, dissolution, operation of law, transfer, or any other manner) any of its rights or interest in this Agreement or subcontract for all or substantially all of its performance of this Agreement, without Boeing's prior written consent.  No assignment, delegation or subcontracting by TEAMMATE, with or without Boeing's consent which shall not be unreasonably withheld, shall relieve TEAMMATE of any of its obligations under this Agreement or prejudice any of Boeing's rights against TEAMMATE whether arising before or after the date of any assignment.  This Article does not limit TEAMMATE's ability to purchase standard commercial supplies or raw materials.

	
17.2

	
Scope and Successors.  This Agreement does not apply to divisions, affiliates, subsidiaries, or other organizational elements of Boeing other than Boeing’s Electronic and Information Solutions Division and Secure Infrastructure Group.   This Agreement inures to the benefit of, and is binding upon, the successors, permitted assigns and personal representatives of the Parties hereto, notwithstanding company reorganizations.  However, in the event an organizational restructuring results in the organization and resources involved in the performance of this Agreement  being consolidated with other elements of Boeing, the provisions of this Agreement shall only apply to the Boeing organization and resources which were dedicated to this Agreement prior to any such restructuring.

 

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ARTICLE 18.    LIMITATION OF LIABILITY

 

	
18.1

	
No Liability for Costs.  Subject to Article 11 (Term and Termination), Section 18.2 (Exclusion of Consequential and Other Damages) below, and except as required under the terms of any resultant Subcontract:

	
  

	
(i)

	
each Party shall bear its own costs and expenses incurred in connection with this Agreement;

	
  

	
(ii)

	
neither Party will be liable to the other for any costs, expenses, risks, or liabilities arising out of the other Party’s efforts or the other Party’s performance of obligations under this Agreement; and

	
  

	
(iii)

	
neither Party shall have the right to any reimbursement, payment or compensation of any kind from the other Party under this Agreement.

	
18.2

	
EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES.  EXCEPT FOR LIABILITY FOR BREACHES OF ARTICLE 7 (DISCLOSURE AND PROTECTION OF PROPRIETARY INFORMATION), ARTICLE 8 (INTELLECTUAL PROPERTY RIGHTS), ARTICLE 23 (COMPLIANCE WITH LAWS), AND EXCEPT AS EXPRESSLY EXCLUDED UNDER SECTION 18.4 (THIRD-PARTY CLAIMS), SECTION 18.5 (INTENTIONAL MISCONDUCT), AND SECTION 18.6 (SUBCONTRACT TERMS) BELOW, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY, WHETHER ARISING IN CONTRACT, IN TORT (WHETHER OR NOT ARISING FROM NEGLIGENCE) OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE, OR SPECIAL DAMAGES OR LOSS OF REVENUES OR PROFIT THAT ARE SUSTAINED BY A PARTY IN CONNECTION WITH THE EXECUTION, IMPLEMENTATION, OR PERFORMANCE OF THIS AGREEMENT.  THE PARTIES AGREE THAT THIS ARTICLE HAS BEEN THE SUBJECT OF DISCUSSION AND NEGOTIATION, IS FULLY UNDERSTOOD BYTHE PARTIES, AND IS A MATERIAL INDUCEMENT TO THE PARTIES TO ENTER INTO AND PERFORM THEIR OBLIGATIONS UNDER THIS AGREEMENT.

	
18.3

	
Definitions.  For the purpose of this Article, “Party” includes the Parties’ divisions, subsidiaries, the assignees of each, subcontractors, suppliers and affiliates, and their respective directors, officers, employees and agents.

	
18.4

	
Third-Party Claims.  Claims by Boeing against TEAMMATE for contribution toward third-party injury, damage, or loss are not limited, waived, released or disclaimed.

	
18.5

	
Intentional Misconduct. This limitation of liability shall not apply to a claim resulting out of TEAMMATE’s acts or omissions constituting reckless disregard, intentional misconduct, or fraud.

	
18.6

	
Subcontract Terms.  This limitation of liability shall not apply to the terms of any resultant Subcontract.

	
18.7

	
Enforcement of Rights.  Nothing in this limitation of liability shall prevent any Party from seeking preliminary, immediate, provisional, interim or conservatory measures (including temporary restraining orders or preliminary injunctions or their equivalent) to obtain specific performance or enforce its rights under this Agreement.

ARTICLE 19.   ORDER OF PRECEDENCE

 

	
19.1

	
All attachments and provisions in this Agreement shall be read so as to be consistent to the extent possible.

	
19.2

	
In the event of a conflict or inconsistency between the documents, then TEAMMATE shall notify Boeing’s Authorized Procurement Agent of the conflict, so that the Boeing’s Authorized Procurement Agent can resolve the conflict.

	
19.3

	
If Boeing’s Authorized Procurement Agent cannot resolve the conflict, then the documents (using the most recently agreed issued version and negotiated modifications thereto) shall prevail in the order listed below, with the first document listed having the highest precedence:

Document Title:

	
  

	
(i)

	
The Teaming Agreement

	
  

	
(ii)

	
Attachment 1 (Statement of Work)

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ARTICLE 20.   SEVERABILITY

 

All provisions of this Agreement are severable.  If any provision of this Agreement or portion hereof is determined to be invalid, illegal, or unenforceable (collectively, “the invalid provision”) by any competent court or arbitral panel, the invalid provision shall be omitted and the rest of this Agreement shall remain in effect, provided that its general purposes are still reasonably capable of being effected and the intent of the Parties in entering into the Agreement is not materially affected thereby.  Further, and only if mutually acceptable to the Parties, the invalid provision shall then be replaced by a provision, which, being valid and enforceable comes closest to the intention of the Parties underlying the invalid provision.

ARTICLE 21.  FORCE MAJEURE

 

	
21.1

	
“Force Majeure” shall mean any event, act, accident, or omission which is beyond the reasonable control of (and without the fault or negligence of) the Party that causes a delay in the performance of that Party’s obligations, such as, without limitation: acts of God or of the public enemy; war (declared or not); riots; civil commotion or unrest; civil war; armed conflict or acts of terrorism; malicious damage; acts of the government in its sovereign or contractual capacity (but excluding the occurrence of the government actions described in Article 11 (Term and Termination)); fire; flood; unusually severe weather (hurricanes, tornadoes, or blizzards); earthquake or mudslide; nuclear, chemical, or biological contamination; epidemic; quarantine restriction; freight embargo; or strikes.

	
21.2

	
If any Party is delayed in the performance of any of its obligations under this Agreement by a Force Majeure event, then the delayed Party shall notify the other Party within ten (10) days after the beginning of any such event and shall specify the nature and extent of the circumstances giving rise to the Force Majeure event.  Subject to the provisions of Section 21.4, during and until the Force Majeure event ceases and the delayed Party recommences its affected operations, neither Party shall be responsible for delays or failures in performance that result from the Force Majeure event.

	
21.3

	
If any Party is delayed by a Force Majeure event from the performance of its obligations for a continuous period in excess of sixty (60) days, then either Party may, by written notice to the other Party, immediately terminate this Agreement.

	
21.4

	
In all cases, the delayed Party shall use reasonable efforts to avoid or minimize such delay, including exercising work-around plans or obtaining goods or services from other sources in sufficient time to meet the required schedules.

ARTICLE 22.  CAPTIONS AND HEADINGS

 

All captions and headings in this Agreement are included only for the convenience of the Parties and shall not be used to explain, modify, simplify, or affect any construction or interpretation of any provision of this Agreement.

ARTICLE 23.  COMPLIANCE WITH LAWS

 

	
23.1

	
Generally.  In addition to Article 24 (Export/Import Regulations) below, the Parties agree to comply with all applicable laws, regulations, ordinances, rules, consent decrees or statutes enacted in their respective countries and jurisdictions, including but not limited to the Foreign Corrupt Practices Act (“FCPA”) (15 U.S.C. §§78dd-1, et. seq.) and the Procurement Integrity Act (41 U.S.C. § 423).

	
23.2

	
Security.  To the extent that the obligations of the Parties require or involve access to information protected under the security laws of any country, the regulations, provisions, and instructions contained in applicable government security laws and manuals shall apply.  When visiting the premises of the other Party, the visiting Party may also be subject to the other Party’s applicable security requirements, rules, policies and regulations.

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ARTICLE 24.   EXPORT/IMPORT REGULATIONS

 

Data exchanged under this Agreement may contain technical data that is categorized on either the United States Munitions List and, as such, subject to the International Traffic in Arms Regulations (ITAR, 22 CFR 120-130), or the Commerce Control List and, as such, subject to the Export Administration Regulations (EAR, 15 CFR 730-799).  The Parties acknowledge that these statutes and regulations impose restrictions on import, export and transfer to third countries of certain categories of data, and that licenses from the U.S. Department of State and/or the U.S. Department of Commerce may be required before such controlled items can be disclosed hereunder, and that such licenses may impose further restrictions on use and further disclosure of such data.  Accordingly, the Parties shall not transfer such data directly or indirectly to any third person or firm, country or countries without specific written authorization from the submitting party and in compliance with all applicable laws and regulations.  In addition, technical data that is controlled by the ITAR or the EAR may not be given to foreign persons (including foreign corporations and U.S. persons employed by foreign corporations) unless the appropriate export license or approval from the U.S. Government has been obtained.

ARTICLE 25.   DISPUTE RESOLUTION

 

	
25.1

	
Procurement Agent Level Negotiations.  In the event of any dispute, claim or controversy arising out of, in connection with, or relating to this Agreement, including any question or claim regarding its formation, existence, validity, enforceability, performance, interpretation, breach or termination (“Dispute(s)”), the Parties shall use reasonable efforts to resolve such Dispute in the normal course of business through amicable negotiations at the procurement agent level by the persons identified in Article 15 (Notices) who may receive technical assistance from the persons identified in Article 2 (Technical Representatives).

	
25.2

	
Legal Action.  The Parties hereby irrevocably agree that any and all Disputes relating to this Agreement that cannot be settled by mutual agreement of the Parties shall be resolved exclusively by the state and federal courts of the State of Delaware, U.S.A.  Each Party hereby submits to the personal jurisdiction of the above-identified courts, and waives and agrees not to assert by way of motion, as a defense or otherwise, in any such suit, action or proceeding, any claim that: (a) such Party is not personally subject to the jurisdiction of the above-identified courts; (b) the suit, action or proceeding is brought in an inconvenient forum; or (c) the venue of the suit, action or proceeding is improper.  Pending final resolution of any Dispute, TEAMMATE shall proceed with performance of this Agreement according to Boeing's instructions.  Invocation of this Article shall not waive any right of either Party, or relieve either Party of any obligation or duty of performance arising under or related to this Agreement or any resultant Subcontract.

ARTICLE 26.   WAIVER

 

A waiver by either Party of default or breach of the Agreement shall not prevent the subsequent enforcement of that provision for a subsequent breach and shall not be deemed to be a waiver of any other default or of the prior, subsequent, same or similar breach or default of that or any other provision.

ARTICLE 27.   COUNTERPARTS

 

This Agreement may be executed in any number of counterparts or duplicates, each of which, when executed and delivered, shall be deemed an original, but all of which together shall constitute one and the same instrument.

ARTICLE 28.   AMENDMENTS

 

This Agreement may not be modified, amended, canceled, or altered in any way nor may it bind either Party or be modified by custom, usage of trade, or course of dealing, except by a written amendment signed by a duly authorized representative of each Party.

 

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ARTICLE 29.   ENTIRE AGREEMENT

 

This Agreement, including the attachments thereto or incorporated by reference constitute the entire agreement between the Parties regarding the Teaming Arrangements for the Program and neither Party has relied on any representation or promise except as expressly set forth in this Agreement.  This Agreement supersedes and satisfies in full any and all prior written or oral negotiations, agreements, understandings, and communications (including those contained in sales, promotional and/or marketing materials) between the Parties with respect to the subject matter of this Agreement.  In the event of a conflict between the language in this document and that contained in MOU-2012-00066 this TA will take precedence.

ARTICLE 30.   EFFECTIVE DATE

 

This Agreement shall become effective on the date of the last signature indicated below (“Effective Date”).

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives on the date written below.

 

 

	LICENSEE	 	 	LICENSOR	 
	 	 	 	 	 
	 	 	 	 	 
	
BY:

	
/s/ Robert Mason

 

	  	
BY:

	
/s/ William J Caragol

	
TYPED 

NAME:

	
Robert Mason

 

 

	  	
TYPED 

NAME:

	
William J Caragol

 

 

 

	  	  	  	  	  
	
TITLE:

	
Procurement Agent

 

	  	
TITLE:

	
Chief Executive Officer

	
DATE:

	
1/2/2013

 

	  	
DATE:

	
12/19/12

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ATTACHMENT 1

STATEMENT OF WORK

This attachment to Teaming Agreement TA-2012-00335 specifies the roles and responsibilities between Boeing (hereafter referred to as “Prime”) and PositiveID (hereafter referred to as ‘Sub’) during the pre-proposal, proposal, and post award phases of Solicitation HSHQDC-12-R-00001, “BioWatch Gen III”,, (hereinafter referred to as “Program”).  As a subcontractor to Prime, Sub agrees to exclusively team with the Prime and to provide for the support specified herein to help make Prime successful in bidding on the Program.

For all Phases, Prime and Sub will continue to foster and maintain an Integrated Team approach.  This concept and approach acknowledges the fundamental contribution both companies make and will serve as a winning discriminator we will promote to our mutual client for the Program.

	
  

	
1.0

	
Pre-Proposal Phase

Sub shall support the Prime to the extent possible by providing any and all information relevant to the Program.  Relevant information includes, as a minimum, information concerning the Program requirements; acquisition strategy, schedule, and funding; and competing team composition and competition assessment.

Sub will work collaboratively with the Prime to develop the capture and bid strategy (management, technical, and cost) and team composition.

	
  

	
2.0

	
Proposal Phase

During the proposal development phase, Sub shall provide accurate and timely response to Prime requests for information required for the proposal.  Proposal support shall include, as a minimum, providing inputs such as past performance data; resumes; cost data; technical capabilities and designs; management processes, practices, and procedures; and definitions.  If tasked by Prime, Sub shall complete specific writing assignments relevant to its areas of expertise, and work assignment areas as described in section 3, below.  If tasked by prime, Sub shall provide senior technical and management personnel to participate in key proposal reviews such as the Blue, Pink, and/or Red Team.  Sub shall participate in the proposal development activity to the maximum extent possible.

	
  

	
3.0

	
Post Contract Award Phase

3.1      Roles

Sub shall be afforded the following work share under this contract.

	
  

	
3.1.1

	
Sub shall provide MBAND technology under licensing and/or royalty terms as defined in Attachment 2, Licensing Agreement.

	
  

	
3.1.2

	
Exclusive right to supply assays and/or reagents to Boeing per the terms of this Teaming Agreement and the License Agreement.

	
  

	
3.1.3

	
Ongoing development and testing efforts as part of the Performance Testing Stage (or Stage 1 or Phase II) where such costs are reimbursable under a Prime contract.

3.2      Key personnel

Sub agrees to supply the following personnel to the Program.  Should these personnel not be available due to their departure from Sub, Sub agrees to furnish personnel deemed equivalent as determined by Prime.

	
  

	
3.2.1

	
Kimothy Smith, Ph.D.

	
  

	
3.2.2

	
Lyle Probst

BOEING PROPRIETARY

  

Page 20 of 21

  

 

Boeing/PositiveID SM Teaming Agreement No. TA-2012-00335

 

 

ATTACHMENT 2 – LICENSE AGREEMENTex10-91.htm

Exhibit 10.91

 

SECURITY AGREEMENT

 

This Security Agreement (this “Agreement”) is dated December 19, 2012 by and between THE BOEING COMPANY, a Delaware corporation (“Secured Party”), on the one hand, and MICROFLUIDIC SYSTEMS, a California corporation and POSITIVEID CORPORATION, a Delaware corporation (collectively, and jointly and severally, “Grantors”), on the other hand.  Each of Secured Party and Grantors are a “Party” and collectively, the “Parties.”

 

RECITALS

 

WHEREAS, Secured Party and Grantors have entered into that certain Exclusive MBAND Licensing Agreement, of even date herewith (the “License Agreement”); and

 

WHEREAS, Grantors have agreed, as a material inducement for Secured Party agreeing to enter into the License Agreement, to enter into this Agreement and grant the security herein granted to Secured Party.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows:

 

ARTICLE I

 

 

Definitions

 

SECTION 1.01.  Defined Terms.  Where applicable and except as otherwise defined herein, terms used in this Agreement shall have the meanings assigned to them in the Uniform Commercial Code in the State of Delaware from time to time.

 

SECTION 1.02.  Other Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

 

“Affiliate” means, with respect to any Person, another Person that directly or indirectly through one or more intermediaries controls or is controlled by or is under common control with such Person.

 

“Bankruptcy Event” means, with respect to any Person, such Person (i) becomes the subject of any voluntary or involuntary bankruptcy or insolvency proceeding, (ii) has a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or (iii) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any proceeding or appointment identified in the foregoing clauses (i) or (ii).

 

“Business Day” means a day other than a Saturday, Sunday or bank holiday in the State of California.

 

“Collateral” means the Licensed Products and Intellectual Property Rights therein (each as defined in the License Agreement), including all related Documents, inventory, Licenses, money, and Intellectual Property, together with any interest of Grantors in any of them).

 

  

 

  

 

“Default” means any of the following events: (a) any Grantor breaches any of its representations, warranties, covenants, agreements or obligations under the License Agreement or this Agreement; (b) a Bankruptcy Event has occurred with respect to any Grantor or any of its Affiliates; or (c) any Grantor or any of its Affiliates becomes unable, admits in writing its inability, or fails generally to pay its debts as they become due..

 

“Documents” means any and all of Grantors’ books, accounts, invoices, letters, papers, security certificates, documents, and other records (including customer lists and records, subject, however, to applicable laws relating to privacy), in any form evidencing or relating to any part of the Collateral, together with all agreements, Licenses, and other rights and benefits relating to any of them.

 

“Indemnified Party” has the meaning given to that term in Section 2.07.

 

“Intellectual Property” means:

 

(a)           All inventions, patents, patent rights, patent applications (including all reissues, divisions, continuations, continuations-in-part, and extensions of any patent or patent application), patentable subject matter, unregistered industrial designs, applications for registration of individual designs, and registered designs, together with any proceeds thereof in whatever form and wherever located (collectively, the “Patents”);

 

(b)           All trademark and service mark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Assignor connected with and symbolized by such trademarks (collectively, the “Trademarks”);

 

(c)           All present and future copyrights, whether registered or note and all present and future applications for copyright registrations (including applications for copyright registrations of derivative works and compilations) (collectively, the “Copyrights”);

 

(d)           all rights and interests in and to processes, data, trade secrets, designs, know-how, processes, product formulae and information, manufacturing, engineering, and other drawings and manuals, technology, algorithms, blue prints, research and development reports, technical information, technical assistance, engineering data, design and engineering specifications, and similar materials recording or evidencing expertise or information related to the Collateral;

 

(e)           All right, title and interest in and to any and all present and future domain names now or hereafter existing, created, acquired or held (collectively, the “Domain Names”);

 

(f)           All right, title and interest in and to any and all present and future Licenses with respect to any other Intellectual Property referenced in this Section (the “IP Licenses”);

 

(g)           All present and future income, proceeds, accounts, accounts receivable and other rights to payment arising from, in connection with or relating to any other Intellectual Property referenced in this Section;

 

  

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(h)           Any and all trade secrets, and any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held;

 

(i)           Any and all claims for damages by way of past, present and future infringements of any of other Intellectual Property referenced in this Section, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of intellectual property rights;

 

(j)           All amendments, extensions, renewals and extensions of any of the other Intellectual Property referenced in this Section;

 

(k)           All commercial tort claims associated with or arising out of any of the other Intellectual Property referenced in this Section;

 

(l)           All goodwill in, proceeds and products of any Intellectual Property referenced in this Section, including, without limitation, all payments under insurance or any indemnity or warranty payable in respect thereto, and foreign rights; and

 

(m)           all other intellectual and industrial property rights throughout the world owned by any Grantor or its Affiliates;

 

“IP Collateral” means all Collateral consisting of any Intellectual Property.

 

“License” means (i) any authorization from any governmental authority having jurisdiction and/or (ii) any Intellectual Property license, distribution agreement, co-existence agreement, or other right to use (or agreement not to pursue a claim with respect to) any Intellectual Property.

 

“License Agreement” has the meaning given to that term in the Recitals.

 

“License Obligations” means (a) Grantors’ obligation to timely perform each and every one of their obligations under the License Agreement, whether direct or indirect, contingent or dissolute, joint or several, mature or unmatured (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether or allowed or allowable in such proceeding) and (b) Grantors’ obligations under this Security Agreement (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether or allowed or allowable in such proceeding).

 

“Lien” means (i) any interest in property created by way of mortgage, pledge, charge, lien, assignment by way of security, hypothecation, security interest, conditional sale agreement, sale/lease back transaction, deposit arrangement, title retention, capital lease, or discount, factoring, or securitization arrangement on recourse terms, (ii) any statutory deemed trust or lien, (iii) any preference, priority, adverse claim, levy, execution, seizure, attachment, garnishment, or other encumbrance that binds property, (iv) any right of set-off intended to secure the payment or performance of an obligation, and (v) any agreement to grant any of the rights or interests described in any of the preceding clauses.

 

  

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“Permitted Disposition” means: (a) sales, transfers, leases, and other dispositions to third Parties of inventory in the ordinary course of business; and (b) sales, transfers, leases, and other dispositions to any Affiliate of Grantors provided that such Affiliate has (i) become a party to this Agreement by executing and delivering a supplement in a form satisfactory to Secured Party and (ii) executed and delivered in favor of Secured Party an unlimited guarantee of performance by Grantors of the License Obligations; provided that all sales, transfers, leases, and other dispositions permitted by this definition (other than those permitted solely by clause (b)) shall be made for fair value.

 

“Permitted Liens” means statutory Liens in connection with claims for unpaid wages, vacation pay, worker’s compensation, unemployment insurance, pension plan contributions, employee withholding tax, unremitted sales taxes, goods and services taxes, customs duties, or similar statutory obligations, duties or taxes secured on any of the undertaking, and property of Grantors, but only if the obligations secured by such Liens are paid when due;

 

“Person” includes any individual and any corporation, company, limited liability company, general or limited partnership, governmental body, joint venture, association, trust, or any other entity.

 

“Receiver” has the meaning given to that term in Section 4.01.

 

“Security Interests” means, collectively, the grants, mortgages, charges, transfers, assignments, and security interests created under this Agreement and/or the License Agreement.

 

“Third Party Agreements” means all leases (true or finance), Licenses, and other agreements affecting any right, title, or interest in any of the Intellectual Property.

 

SECTION 1.03.  Interpretation.  The headings used in this Agreement, and its division into articles, sections, schedules, and other subdivisions, shall not be deemed to affect its interpretation.  References in this Agreement to “herein,” “hereof” and the like shall apply generally to this Agreement unless the context otherwise requires.  Unless the context otherwise requires, words importing the singular number include the plural and vice versa; words importing gender include all genders.  In this Agreement, a period of days begins on the first day after the event that began the period and ends at 5:00 p.m. Pacific Time on the last day of the period.  If any period of time is to expire, or any action or event is to occur, on a day that is not a Business Day, the period expires, or the action or event is considered to occur, at 5:00 p.m. Pacific Time on the next Business Day.  Where this Agreement uses the word “including,” it means “including without limitation,” and where it uses the word “includes,” it means “includes without limitation.”  The Parties have each participated in drafting and negotiating the terms of this Agreement.  Any rule of legal interpretation to the effect that any ambiguity is to be resolved against the drafting Party will not apply in interpreting this Agreement.  Any reference in this Agreement to Collateral will, unless the context otherwise requires, be deemed a reference to “Collateral or any part thereof”.  Unless specified otherwise, any reference in this Agreement to a statute includes the regulations, rules, and policies made under that statute and any provision that amends, supplements, supersedes, or replaces that statute or those regulations, rules, or policies.

 

ARTICLE II

 

Security Interests

 

SECTION 2.01.  Security Interest.  (a)  As general and continuing security for the due observance and performance by the Grantors of all License Obligations, each Grantor hereby pledges, assigns and grants to Secured Party a first priority continuing security interest, Lien, claim and encumbrance, with full title guarantee, in all of the Collateral, with power of sale, whether now or hereafter existing or arising or in which such Grantor now has or hereafter owns, acquires or develops an interest and wherever located.

 

  

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(b)  On a continuing basis, Grantors shall each make, execute, acknowledge and deliver, and file and record in the proper filing and recording places, all such instruments and documents, and take all such action as may be necessary or advisable or may be requested by Secured Party to carry out the intent and purposes of this Agreement, or for assuring, confirming or protecting the grant or perfection of the Security Interest granted or purported to be granted hereby, to ensure each Grantor’s compliance with this Agreement and/or to enable Secured Party to exercise and enforce its rights and remedies hereunder with respect to the Collateral, including any documents for filing with the United States Patent and Trademark Office (“USPTO”) and/or any applicable agency.

 

(c)  Without limitation of clause (b) above, Grantors each hereby irrevocably authorizes Secured Party at any time and from time to time to file in any relevant jurisdiction any initial financing statements with respect to the Collateral or any part thereof and amendments thereto, and hereby ratifies its authorization for Secured Party to file in any relevant jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof, in each case that (i) indicate the Collateral as all assets of Grantors or words of similar effect as being of an equal or lesser scope or with greater detail, and (ii) contain the information required by applicable law for the filing of any financing statement or amendment.  Each Grantor agrees to provide such information to Secured Party promptly upon request.  Secured Party is further authorized to file with the USPTO or any successor office or any other office in any other country such documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by Grantors, without the signature of Grantors, and naming Grantors as debtor and Secured Party as secured party, at Grantors’ expense.

 

(d)  The Security Interest granted pursuant to Article II hereunder is granted as security only and shall not subject Secured Party to, or in any way alter or modify, any obligation or liability of Grantors with respect to or arising out of the Collateral.  Grantors grants the Security Interest in the Intellectual Property only as security.  Before the Security Interest becomes enforceable under this Agreement, Secured Party will not be or be deemed to be the owner of any of the Intellectual Property.  Further, Secured Party will not be deemed to have assumed, or be deemed to be liable for, any covenant, agreement, or other obligation of Grantors under any agreement, right, License, or permit relating to the Intellectual Property to which Grantors may be a party.

 

(e)  If Secured Party exercises its remedies with respect to the Collateral and the Security Interest in the Collateral is not sufficient to satisfy all of the License Obligations, each Grantor acknowledges and agrees that Grantors shall continue to be liable for any License Obligations that remain outstanding and Secured Party shall be entitled to pursue full payment and performance thereof.

 

(f)  Any assignment, transfer and conveyance of any Trademark to any Person pursuant to the exercise of Secured Party’s rights hereunder shall be deemed to have occurred with a contemporaneous assignment, transfer and conveyance of the goodwill, business and/or means of production, associated with the goods produced or sold or the services rendered in connection with such Trademark.

 

  

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SECTION 2.02.  Representations and Warranties.  Each Grantor represents and warrants to Secured Party that:

 

(a)  Each Grantor is a corporation, validly existing, and in good standing under the laws of the jurisdiction of its incorporation.  Each Grantor has the corporate power and authority, and holds all Licenses, permits and other authorizations necessary, to own, lease, and operate its properties, to perform the License Obligations and create the Security Interest, to conduct its business as now carried on by it, and to enter into, deliver, and perform its obligations under this Agreement.  Each Grantor has duly authorized, executed, and delivered this Agreement and the License Agreement, and this Agreement and the License Agreement each constitute a binding obligation of Grantors, enforceable against Grantors in accordance with their respective terms.  Grantors have good and marketable title in and to all Collateral, and none of the Collateral is subject to any Liens (other than pursuant to this Agreement).

 

(b)  None of the signature and delivery of this Agreement, the payment, observance, or performance of the License Obligations, or the granting of the Security Interest by Grantors do or will:

 

(i) conflict with or result in a breach or violation of any of the terms of, or constitute a default under: (w) any statute or other law that applies to it; (x) any Grantors’ articles, by-laws, or other governing documents; (y) any agreement to which it is a party or by which it is bound; or (z) any judgment or other order that binds it or its assets;

 

(ii) result in the creation of, or require any Grantor to create, any Lien in favor of any Person other than Secured Party under this Agreement; or

 

(iii) result in or permit the acceleration of the maturity of any indebtedness or other obligation of any Grantor or its Affiliates.

 

(c)  No proceedings have been taken or authorized by any Grantor or its Affiliates or, to its knowledge, by any other Person relating to the bankruptcy, insolvency, liquidation, dissolution, or winding up of any Grantor.

 

(d)  Grantors have good and valid rights in and title to the Collateral and have full power and authority to grant to Secured Party the Security Interest in such Collateral pursuant hereto and to execute, deliver and perform their obligations in accordance with the terms of this Agreement, without the consent or approval of any other Person other than any consent or approval that has been obtained prior to the date hereof.

 

(e)  The financing statements or other appropriate filings, recordings or registrations prepared by Secured Party based upon the information provided to Secured Party for filing in each governmental, municipal or other office specified in Schedule I (or specified by notice from Grantors to Secured Party after the date hereof in the case of filings, recordings or registrations required hereunder), are all the filings, recordings and registrations (other than filings required to be made in the USPTO in order to perfect the Security Interest in the IP Collateral) that are necessary to publish notice of and protect the validity of and to establish a legal, valid and perfected security interest in favor of Secured Party in respect of all Collateral in which the Security Interest may be perfected by filing, recording or registration in the United States and its territories and possessions, and no further or subsequent filing, refiling, recording, rerecording, registration or reregistration is necessary in any such jurisdiction, except as provided under applicable law with respect to the filing of continuation statements.

 

  

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(f)  The Security Interest constitutes (i) a legal and valid security interest in all the Collateral securing the performance of the License Obligations, (ii) subject to the filings described in paragraph (b) and (c) of this Section 2.01, a perfected security interest in all Collateral in which a security interest may be perfected by filing, recording or registering a financing statement or analogous document in the United States (or any political subdivision thereof) and its territories and possessions pursuant to applicable law, and (iii) a security interest that will be perfected in all Collateral in which a security interest may be perfected upon the receipt and recording of this Agreement with the USPTO.  The Security Interest is and will at all times be prior and superior to any other Lien on any of the Collateral, other than Permitted Liens (and subject to any permitted third party debt financing permitted in accordance with Section 12 of the License Agreement).

 

(g)  Schedule II sets forth, as of the date hereof, a true and complete list of all registered Intellectual Property and applications for registration of any Intellectual Property, subdivided into the following categories: (i) owned by Grantors (identifying with respect to each item of scheduled Intellectual Property, the specific owner thereof); (ii) licensed for use to Grantors (identifying with respect to each License, the specific licensee and licensor thereto); and (iii) licensed for use by Grantors (identifying with respect to each License, the specific licensee and licensor thereto).  Other than as identified on Schedule II, there is no material item of Intellectual Property used or held for use in the business or operations of Grantors or otherwise related to the MBAND technology.

 

(h)  With respect to each Grantor, as to itself and its IP Collateral:

 

(i) The registered Intellectual Property and applications for registration of Intellectual Property set forth on Schedule II includes all the registered Patents, Trademarks, and Copyrights and applications for Patents, Trademarks, and Copyrights owned or used by Grantors as of the date hereof.  Grantors are the sole and direct owner of all Intellectual Property that constitutes IP Collateral.  All Intellectual Property that is material to the Licensed Products (as defined in the License Agreement) has been duly and timely registered and all such registrations are valid and in full force and effect.

 

(ii) The IP Collateral is subsisting and has not been adjudged invalid or unenforceable in whole or part and is valid and enforceable.  Grantors are not aware of any uses of any item of IP Collateral that could lead to such item becoming invalid or unenforceable.  Neither Grantors’ use (nor Secured Party’s use as licensee under the License Agreement) does or shall infringe upon the rights of any Person.

 

(iii) Each Grantor has made or performed all commercially reasonable acts, including filings, recordings and payment of all required fees and taxes, required to maintain and protect its interest in each material item of IP Collateral in full force and effect in the United States and every other applicable jurisdiction, and each Grantor has used proper statutory notice in connection with its use of the Intellectual Property that constitutes the IP Collateral.

 

  

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(iv) All Third Party Agreements are in effect and in good standing, and no Grantor (and, to any Grantor’s knowledge, no other Person) is in violation or default thereunder.

 

(v) Neither any Grantor nor the IP Collateral is subject to any outstanding consent, settlement, decree, order, injunction, judgment or ruling restricting the use of any IP Collateral or that would impair the validity or enforceability of such IP Collateral.  No litigation is pending or threatened that contains allegations respecting the validity, enforceability, infringement, or ownership of any of the registered Patents and Patent applications (including any right, title, or interest of any Grantor therein).

 

SECTION 2.03.  Covenants.  (a)   Grantors shall satisfy the License Obligations when due.

 

(b)  Each Grantor agrees promptly to notify Secured Party in writing of any change (i) in its corporate name, (ii) in the location of its chief executive office or its principal place of business, any office in which it maintains books or records relating to Collateral owned by it or any office or facility at which Collateral is located, (iii) in its identity or type of organization or corporate structure, (iv) in its FEIN or similar identification number, or (v) in its jurisdiction of organization or the location of its registered office.  Each Grantor agrees promptly to provide Secured Party with certified organizational documents reflecting any of the relevant changes described in the first sentence of this paragraph, and each Grantor agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made under applicable law or otherwise that are required in order for Secured Party to continue at all times following such change to have a valid, legal and perfected security interest, having the priority required by this Agreement, in all the Collateral.  Each Grantor agrees promptly to notify Secured Party if any material Collateral is damaged, destroyed, or subject to condemnation.

 

(c)  Grantors shall give notice to Secured Party immediately of (i) any material uninsured loss of or damage to any Collateral or of any suit, action, or proceeding before any governmental authority or arbitrator that could materially adversely affect any Collateral or the Security Interest, (ii) any material Intellectual Property in which any Grantor or its Affiliates acquires rights after the date hereof, (iii) any material adverse change in the composition of the IP Collateral; and (iv) any event occurring that, with or without notice or lapse of time, could constitute a Default. Without limiting Grantors’ obligations hereunder, Grantors hereby authorizes Secured Party to modify this Agreement by amending the applicable schedules to include any new Intellectual Property referenced in clause (ii) of this Section 2.03(c).  Notwithstanding the foregoing, no failure to so modify this Agreement or amend such schedules shall in any way affect, invalidate or detract from Secured Party’s continuing security interest in all Collateral, whether or not listed on the applicable schedules.

 

(d)  Each Grantor shall, at Grantors’ expense, take any and all actions necessary to defend title to the Collateral against all Persons, keep the Collateral free of all Liens, except for Permitted Liens, and to defend the Security Interest of Secured Party in the Collateral and the priority thereof against any Lien that is not a Permitted Lien.  Without limitation of the foregoing, Grantors shall (i) protect, defend and maintain the validity and enforceability of the IP Collateral, (ii) use their best efforts to detect and prosecute infringements of the IP Collateral and promptly advise Secured Party in writing of material infringements detected and (iii) not allow any IP Collateral to be abandoned, forfeited or dedicated to the public.

 

  

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(e)  Grantors shall not make or permit to be made any transfer of the Collateral, and Grantors shall remain at all times in possession of the Collateral owned by any Grantor, and Grantors shall not sell, convey, license, lease, assign, transfer or otherwise dispose of any Collateral; however, notwithstanding the foregoing, Grantors may make Permitted Dispositions.

 

(f)  Grantors, at Grantors’ expense, shall maintain or cause to be maintained public liability insurance, all-risks property insurance for the Collateral on a replacement cost basis, and insurance for any other risks related to the Collateral, as Secured Party may reasonably require.

 

(g)  No Grantor shall enter into any agreement that could materially impair or conflict with Grantors’ obligations under this Agreement or the License Agreement.  Grantors shall not permit the inclusion in any material contract to which any Grantor becomes a party of any provisions that could or might in any way prevent the creation of a security interest in Grantors’ rights and interest in any property included within the definition of the Collateral acquired under such contracts.

 

SECTION 2.04.  Other Actions.  In order to further insure the attachment, perfection and priority of, and the ability of Secured Party to enforce, the Security Interest, each Grantor agrees, in each case at Grantors’ expense, to execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements, fixture filings, mortgages, deeds of trust and other documents), that may be required under any applicable law, or that Secured Party may reasonably request.  Each Grantor also agrees to provide to Secured Party, from time to time upon request, evidence reasonably satisfactory to Secured Party as to the perfection and priority of the Liens created or intended to be created by the Security Documents.  If any material assets are acquired by any Grantor after the date hereof (other than assets constituting Collateral under this Agreement that become subject to the Lien granted to Secured Party upon the  Grantor’s acquisition thereof), Grantors will notify Secured Party thereof, and, if requested by Secured Party, Grantors shall cause such assets to be subjected to a Lien securing the License Obligations and will take such actions as are necessary or reasonably requested by Secured Party to grant and perfect such Lien, including actions described in the first sentence of this paragraph, all at the expense of Grantors.

 

SECTION 2.05.  New Affiliates.  If any Grantor acquires, purchases or otherwise becomes a beneficial owner, directly or indirectly, of another business, corporation or company, Grantors shall cause such business, corporation or company to forthwith provide a form of guarantee to Secured Party of the License Obligations, and such Affiliate shall become a party to this Agreement by executing and delivery a supplement in a form satisfactory to Secured Party.

 

SECTION 2.06.  Covenants Regarding IP Collateral.  (a)   Each Grantor agrees that it will exercise commercially reasonable efforts to prevent any IP Collateral from becoming invalidated or dedicated to the public (except as a result of expiration of the applicable statutory term, if any).

 

(b)  Grantors shall notify Secured Party promptly if any Grantor knows or learns that any IP Collateral may become abandoned, lost or dedicated to the public, or of any materially adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the USPTO) regarding Grantors’ ownership of such IP Collateral, its right to register the same, or its right to keep and maintain the same.

 

  

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(c)  Grantors shall take all necessary steps (i) in any proceeding before the USPTO or in any other country or any political subdivision thereof, to maintain and pursue each material application relating to the IP Collateral (and to obtain the relevant grant or registration) and (ii) to maintain each material issued IP Collateral, including timely filings of applications for renewal, affidavits of use, affidavits of incontestability and payment of maintenance fees, and, if consistent with good business judgment, to initiate opposition, interference and cancelation proceedings against third parties.

 

SECTION 2.07.  General Indemnity.  Grantors shall jointly and severally indemnify, defend and hold harmless Secured Party, any Receiver, and their respective representatives and agents (each, an “Indemnified Party”) in connection with all claims, losses, and expenses that an Indemnified Party may suffer or incur in connection with (i) the exercise by Secured Party or any Receiver of any of its rights under this Agreement, (ii) any breach by any Grantor of the representations, warranties, agreements or covenants of Grantors contained in this Agreement, or (iii) any breach by any Grantor of, or any failure by any Grantor to observe or perform, any of the License Obligations, except that Grantors will not be obliged to indemnify any Indemnified Party to the extent those claims, losses, and expenses are determined by a final judgment to have directly resulted from the willful misconduct or gross negligence of the Indemnified Party.  Secured Party will be constituted as the trustee of each Indemnified Party, other than itself, and shall hold and enforce each of the rights of the other Indemnified Parties under this Section 2.07 for their respective benefits.

 

ARTICLE III

 

Default

 

SECTION 3.01.  Default.  Upon the occurrence of any Default, Secured Party may exercise any and all remedies available to it, whether under this Agreement, the Delaware Uniform Commercial Code or other applicable law.

 

SECTION 3.02.  Waiver.  Secured Party may waive any Default or any breach of the provisions of this Agreement.  However, no waiver will be deemed to extend to a subsequent breach or Default, whether or not the same as or similar to the breach or Default waived, and no act or omission by Secured Party will extend to, or be taken in any manner whatsoever to affect, any subsequent breach or Default or the rights of Secured Party arising therefrom.  In order to be effective, any waiver must be in writing and signed by Secured Party.  No failure on the part of Secured Party to exercise, or delay by Secured Party in exercising, any right under this Agreement will operate as a waiver of such right.  No single or partial exercise of any such right will preclude any other or further exercise of such right or the exercise of any other right.

 

  

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ARTICLE IV

 

Remedies

 

SECTION 4.01.  Remedies Upon Default.  Upon the occurrence and during the continuance of a Default, each Grantor agrees to deliver or cause to be delivered each item of Collateral to Secured Party on demand, and it is agreed that Secured Party shall have the right to take any of or all the following actions at the same or different times: (a) with respect to any IP Collateral, on demand, to cause the Security Interest to become an assignment, transfer and conveyance of any of or all such Collateral by the applicable Grantor to Secured Party or to license or sublicense, whether general, special or otherwise, and whether on an exclusive or a nonexclusive basis, any such Collateral throughout the world on such terms and conditions and in such manner as Secured Party determines and (b) with or without legal process and with or without prior notice or demand for performance, to take possession of the Collateral and without liability for trespass to Grantors to enter any premises where the Collateral may be located for the purpose of taking possession of or removing the Collateral and, generally, to exercise any and all rights afforded to a secured party under applicable law or in equity.  Without limiting the generality of the foregoing, each Grantor agrees that, upon the occurrence and during the continuance of a Default, Secured Party will have the right, subject to any mandatory requirements of applicable law, to sell or otherwise dispose of all or any part of the Collateral at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as Secured Party may deem appropriate.  Upon consummation of any such sale of Collateral pursuant to this Section 4.01 Secured Party will have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold.  Each such purchaser at any such sale shall hold the property sold absolutely, free from any Lien, claim or right on the part of Grantors, and each Grantor hereby waives and releases (to the extent permitted by applicable law) all rights of redemption, stay, valuation and appraisal that any Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  To the extent any notice is required by applicable law, Secured Party shall give Grantors ten (10) days written notice (which Grantors agree is reasonable notice) of Secured Party’s intention to make any sale of Collateral.  Such notice, in the case of a public sale, shall state the time and place for such sale. Any such public sale will be held at such time or times within ordinary business hours and at such place or places as Secured Party may fix and state in the notice (if any) of such sale.  At any such sale, the Collateral, or the portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as Secured Party may (in its sole and absolute discretion) determine.  Secured Party will not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral has been given.  Secured Party may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned.  In the case of any sale of all or any part of the Collateral made on credit or for future delivery, the Collateral so sold may be retained by Secured Party until the sale price is paid by the purchaser or purchasers thereof, but Secured Party will not incur any liability in the event that any such purchaser or purchasers fail to take up and pay for the Collateral so sold and, in the case of any such failure, such Collateral may be sold again upon notice given in accordance with provisions above.  At any public (or, to the extent permitted by law, private) sale made pursuant to this Section 4.01, Secured Party may bid for or purchase for cash, free (to the extent permitted by law) from any right of redemption, stay, valuation or appraisal on the part of Grantors (all such rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property in accordance with Section 4.02 hereof without further accountability to Grantors therefor.  For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; Secured Party will be free to carry out such sale pursuant to such agreement, and Grantors will not be entitled to the return of the Collateral or any portion thereof subject thereto, even if after Secured Party has entered into such an agreement all Defaults have been remedied and the License Obligations have been performed in full.  As an alternative to exercising the power of sale herein conferred upon it, Secured Party may proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver.  Any sale pursuant to the provisions of this Section 4.01 shall be deemed to conform to the commercially reasonable standards, as may be required by applicable law.  Secured Party may appoint, remove or reappoint by instrument in writing, any person or persons, whether an officer or officers or an employee or employees of any Grantor or not, to be an interim receiver, receiver or receivers (hereinafter called a “Receiver”, which term when used herein shall include a receiver and manager) of such Collateral (including any interest, income or profits therefrom).  Any such Receiver shall, to the extent permitted by applicable law, be deemed the agent of Grantors and not of Secured Party, and Secured Party will not be in any way responsible for any misconduct, negligence or non-feasance on the part of any such Receiver or its servants, agents or employees.  Subject to the provisions of the instrument appointing it, any such Receiver will (i) have such powers as have been granted to Secured Party under this Article IV and (ii) will be entitled to exercise such powers at any time that such powers would otherwise be exercisable by Secured Party under this Article IV, which powers will include the power to take possession of the Collateral, to preserve the Collateral or its value, to carry on or concur in carrying on all or any part of the business of any Grantor, and to sell, lease, license or otherwise dispose of or concur in selling, leasing, licensing or otherwise disposing of the Collateral.  To facilitate the foregoing powers, any such Receiver may, to the exclusion of all others, including Grantors, enter upon, use and occupy all premises owned or occupied by any Grantor wherein the Collateral may be situated, maintain the Collateral upon such premises, borrow money on a secured or unsecured basis, and use the Collateral directly in carrying on Grantors’ business or as security for loans or advances to enable the Receiver to carry on Grantors’ business or otherwise, as such Receiver shall, in its reasonable discretion, determine.  Except as may be otherwise directed by Secured Party, all money received from time to time by such Receiver in carrying out its appointment will be received in trust for and be paid over to Secured Party and any surplus will be applied in accordance with applicable law.  Every such Receiver may, in the discretion of Secured Party, be vested with, in addition to the rights set out herein, all or any of the rights and powers of Secured Party under applicable law.

 

  

11

  

 

SECTION 4.02.  Application of Proceeds.  Secured Party shall apply the proceeds of any collection or sale of Collateral, including any Collateral consisting of cash, as follows:

 

FIRST, to the payment of all costs and expenses incurred by Secured Party in connection with such collection or sale or otherwise in connection with any of the License Obligations, including all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by Secured Party hereunder or under the License Agreement on behalf of Grantors and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under the License Agreement;

 

SECOND, to the payment in full of the License Obligations; and

 

THIRD, to Grantors, their successors or assigns, or as a court of competent jurisdiction may otherwise direct.

 

Secured Party will have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement.  Upon any sale of Collateral by Secured Party (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of Secured Party or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to Secured Party or such officer or be answerable in any way for the misapplication thereof.

 

  

12

  

 

ARTICLE V

 

Miscellaneous

 

SECTION 5.01.  Successors and Assigns.  This Agreement shall be binding upon all successors and assigns of Grantors.  If any Grantor undergoes any merger, reorganization, or other fundamental transaction, this Agreement will continue in full force and effect and will be binding upon the successor entity and, for greater certainty: (a) the Security Interest will continue to secure all the License Obligations; (b) the Security Interest will (i) continue to attach to all property of Grantors; (ii) attach to all property of each successor; and (iii) attach to all property of the successor, including the Collateral; (b) all defined terms and other provisions of this Agreement will be deemed to have been amended to reflect such fundamental transaction, to the extent required by the context; and (c) the Parties agree to execute and deliver all further documents and assurances as may be necessary or desirable in connection with the foregoing.

 

SECTION 5.02.  Power of Attorney.  (a) Each Grantor hereby irrevocably constitutes and appoints Secured Party and any officer or any agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, Each Grantor hereby gives Secured Party the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the following: (i) in the name of such Grantor or its own name, or otherwise, take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any receivable or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by Secured Party for the purpose of collecting any and all such moneys due under any receivable or with respect to any other Collateral whenever payable; (ii) in the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as Secured Party may request to evidence the Secured Party’s security interest in such Intellectual Property and the goodwill and general intangibles of Grantors or its Affiliates relating thereto or represented thereby; (iii) pay or discharge taxes and Liens (other than Permitted Liens) levied or placed on or threatened against the Collateral, effect any repairs or any insurance called for by the terms of the License Agreement and pay all or any part of the premiums therefor and the costs thereof; (iv) execute, in connection with any sale provided for this Agreement, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; (v) (A) direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to Secured Party or as Secured Party shall direct; (B) ask or demand for, collect, and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Collateral; (C) sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other documents in connection with any of the Collateral; (D) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and to enforce any other right in respect of any Collateral; (E) defend any suit, action or proceeding brought against any Grantor with respect to any Collateral; (F) settle, compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as Secured Party may deem appropriate; (G) assign any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for such term or terms, on such conditions, and in such manner, as Secured Party shall in its sole discretion determine; and (H) generally, sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though Secured Party were the absolute owner thereof for all purposes, and do, at Secured Party’s option and Grantors’ expense, at any time, or from time to time, all acts and things which Secured Party deems necessary to protect, preserve or realize upon the Collateral and Secured Parties’ security interests therein and to effect the intent of this Agreement, all as fully and effectively as any Grantor might do; and (vi) license or sublicense whether on an exclusive or non-exclusive basis, any Intellectual Property for such term and on such conditions and in such manner as Secured Party shall in its sole judgment determine and, in connection therewith, each Grantor hereby grants to Secured Party for the benefit of Secured Party a royalty-free, world-wide irrevocable license of its Intellectual Property (but without limitation of the consideration payable in accordance with Section of the License Agreement). Anything in this Section to the contrary notwithstanding, Secured Party agrees that, except as provided in Section 5.02(b), it will not exercise any rights under the power of attorney provided for in this Section 5.02(a) unless a Default shall have occurred.

 

  

13

  

 

(b)  If any Grantor fails to perform or comply with any of its agreements contained herein, Secured Party, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement; provided, however, that unless a Default has occurred and is continuing or time is of the essence, Secured Party shall not exercise this power without first making demand on Grantors and the Grantors failing to promptly comply therewith.

 

(c)  The expenses of Secured Party incurred in connection with actions undertaken as provided in this Section 5.02, shall be payable by Grantors to Secured Party on demand.

 

(d)  Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until this Agreement is terminated and the security interests created hereby are released.

 

SECTION 5.03.  Waiver.  To the fullest extent permitted by applicable law, each Grantor waives all of the rights, benefits, conditions, warranties, and protections given by the provisions of any existing or future statute that imposes limitations upon the rights of a secured party or upon the methods of realization of Security Interests, including and seize or sue or anti-deficiency statute or any similar provisions of any other statute.

 

SECTION 5.04.  Security in Addition.  This Agreement and the Security Interests are in addition to and not in substitution for any other security now or later held by Secured Party in connection with Grantors, the License Obligations, and/or the Collateral.  The Security Interests do not replace or otherwise affect any existing or future Lien held by Secured Party.  No taking of any suit, action, or proceeding, judicial or extra-judicial, no refraining from doing so, and no dealing with any other security for any License Obligation will (i) release or affect the Security Interests or (ii) release or affect any of the other Liens held by Secured Party for the payment or performance of the License Obligations.

 

  

14

  

 

SECTION 5.05.  Information.  Secured Party may at any time provide to any Person that claims an interest in Collateral copies of this Agreement or information about it, the Collateral, or the License Obligations.

 

SECTION 5.06.  Release.  Once Grantors satisfy the License Obligations in full, Secured Party shall, within a reasonable time after it receives a written request from Grantors, release the Security Interests and execute and deliver any releases and discharges that Grantors may reasonably require.  Grantors shall pay all expenses incurred by Secured Party in doing so.

 

SECTION 5.07.  Non-Merger.  This Agreement will not operate by way of a merger of the License Obligations or of any guarantee or agreement or other document or instrument by which the License Obligations now or at any time subsequently may be represented or evidenced.  Neither the taking of any judgment nor the exercise of any power of seizure or disposition shall extinguish the liability of Grantors to perform the License Obligations nor shall the acceptance of any payment or alternate security constitute or create any novation.  No covenant, representation or warranty of Grantors in this Agreement shall merge in any judgment.

 

SECTION 5.08.  Survival.  All covenants, agreements, representations and warranties made by Grantors herein and/or in the License Agreement will be considered to have been relied upon by Secured Party and will survive the execution and delivery of this Agreement, regardless of any investigation made by or on behalf of Secured Party or any other Person and whether or not Secured Party or any other Person had notice or knowledge of any Default or incorrect representation or warranty when this Agreement was executed and/or delivered, and will continue in full force and effect as long as any License Obligation remains outstanding.

 

SECTION 5.09.  Entire Agreement.  This Agreement, together with the License Agreement, constitutes the entire agreement between the Parties relating to the subject matter hereof.  This Agreement, together with the License Agreement, supersedes any previous agreements and discussions between the Parties regarding the subject matter hereof.  There are no representations, covenants, or other terms other than those set forth in this Agreement and the License Agreement.  In the event of any inconsistency between this Agreement and the License Agreement regarding the Security Interest or the Collateral, this Agreement will prevail and, in all other respects, the License Agreement will prevail.

 

SECTION 5.10.  Amendment.  This Agreement may only be amended by a written document signed by each of the Parties.

 

SECTION 5.11.  Notice.  To be effective, any notice, request, direction, or other document that a Party may or must make or give under this Agreement shall be in writing and delivered in writing and shall be mailed to the Party who whom notice is to be given by facsimile, and confirmed by first class mail, postage prepaid, and properly addressed below (in which case notice shall be deemed to have been duly given on the day the notice is first received by the Party), or to any other address for a Party as that Party may from time to time designate to the other Parties in the same manner:

 

in the case of Secured Party, to:

 

  

15

  

 

 

 

 

in the case of Grantors, to:

 

 

 

 

SECTION 5.12.  Misc.  Nothing contained in this Agreement shall be deemed to create a partnership, joint venture, principal-and-agent relationship, or any similar relationship between the Parties. The invalidity or unenforceability of any particular provision of this Agreement will not affect or limit the validity or enforceability of the remaining provisions.  This Agreement inures to the benefit of and binds the Parties’ respective successors and permitted assigns.  Secured Party may assign this Agreement and the License Obligations in whole or in part to any Person without notice to or the consent of any Grantor.  Without the prior written consent of Secured Party, no Grantor may assign this Agreement.  The laws of the State of Delaware, excluding any rule or principle of conflicts of law that may provide otherwise, shall govern this Agreement. 

 

[Signature Pages Follow]

 

  

16

  

 

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the day and year first above written.

 

	 	
[PositiveID Corporation]

	 	
by

	 	  	
/s/ William J Caragol

	 	  	
Name:   William J Caragol

	 	  	
Title:     CEO

	 	
[MicroFluidic Systems  ]

	 	
By

	 	  	
 /s/ William J Caragol

	 	  	
Name:  William J Caragol

	 	  	
Title:    President

	 	
[The Boeing Company   ]

	 	
by

	 	  	
/s/ Robert Mason

	 	  	
Name:  Robert Mason

	 	  	
Title:    Procurement Agent

  

17

  

 

Schedule I to

Security Agreement

FILINGS/LOCATIONS

 

  

 

  

 

Schedule II to the

Security Agreement

 

INTELLECTUAL PROPERTY

 

Patents Owned by Microfluidic Systems

 

 

US Patent Registrations

 

	
Patent Numbers

	
Issue Date

	
US 7,491,527 B2

Microfluidic Differential Extraction Cartridge

	
Feb. 17, 2009

	
US 7,541,166 B2

Sonication to Selectively Lyse Different Cell Types

	
Jun. 2, 2009

	
US 7,553,647 B2

Microfluidic Differential Extraction Cartridge

	
Jun. 30, 2009

	
US 7,618,588 B2

Disposable Integrated Heater and Tube Assembly For Thermally‐Driven Chemical Reactions

	
Nov. 17, 2009

	
US 7,633,606 B2

Integrated Airborne Substance Collection and Detection System

	
Dec. 15, 2009

	
US 7,699,915 B2

Liquid Impingement Unit

	
Apr. 20, 2010

	
US 7,705,739 B2

Integrated Airborne Substance Collection and Detection System

	
Apr. 27, 2010

	
US 7,785,869 B2

Sonication to Selectively Lyse Different Cell Types

	
Aug. 31, 2010

 

	
US 7,815,718 B2

Automated Particle Collection Off of Fan Blades into a Liquid Buffer

	
Oct. 19, 2010

	
US 7,858,366 B2

Integrated Airborne Substance Collection and Detection System

	
Dec. 28, 1010

	
US 8,053,214 B2

Apparatus and Method of Extracting and Optically Analyzing an Analyte from a Fluid‐Based Sample

	
Nov. 8, 2011

 

  

 

  

 

US Patent Applications

 

	
Patent Application No.

	
Filing Date

	
MFSI‐2100 12/462,174

Thermal Cycler for Even Heating of One or More Samples

	
Jul. 29, 2009

	
MFSI‐2200 12/603,428

Integrated Sample Preparation and Amplification for Nucleic Acid Detection from Biological Samples

	
Oct. 21, 2009

 

	
MFSI‐2300 12/621,332

A Sample Preparation Technique to Eliminate Inhibition of PCR by Humic Acid

	
Nov. 18, 2009

	
MFSI‐2400 12/621,367

Increase of Signal Sensitivity Using Dual Probes in PCR Reactions

	
Nov. 18, 2009

	
MFSI‐2501 13/047,632

Method and Apparatus for Optically Interrogating and Analyzing a Fluid Sample

	
Mar. 14, 2011

	
MFSI‐2600 12/715,261

A Flow‐Through Bead Purification and Concentration Device

	
Mar. 1, 2010

Non-US Patent Registrations

 

 

 

	
Country

	
Issue Date

	
Patent No.

	  	  	  
	
N/A

	  	  
	  	  	  
	  	  	  
	  	  	  

Non-US Patent Registrations

 

 

 

	
Country

	
Filing Date

	
Patent Application No.

	  	  	  
	  	  	  
	
N/A

	  	  
	  	  	  
	  	  	  
	  	  	  

 

  

2

  

 

Trademark/Trade Names Owned by PositiveID/MFS

 

US Trademark Registrations

 

	
Mark

	
Reg. Date

	
Reg. No.

	
N/A

	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

US Trademark Applications

 

	
Mark

	
Filing Date

	
Application No.

	
N/A

	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

Non-US Trademark Registrations

 

	
Country

	
Mark

	
Reg. Date

	
Reg. No.

	  	  	  	  
	
N/A

	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

Non-US Trademark Applications

 

 

	
Country

	
Mark

	
Application Date

	
Application No.

	  	  	  	  
	  	  	  	  
	
N/A

	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

 

  

3

  

Trade Names

 

	
Country(s) Where Used

	
Trade Names

	  	  
	  	  
	  	  
	  	  
	  	  

 

Copyrights Owned by [NAME]

 

 

US Copyright Registrations

 

	
Title

	
Reg. No.

	
Author

	  	  	  
	
N/A

	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

US Pending Copyright Applications for Registration

 

	
Title

	
Author

	
Class

	
Date Filed

	  	  	  	  
	  	  	  	  
	
N/A

	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

Non-US Copyright Registrations

 

	
Country

	
Title

	
Reg. No.

	
Author

	  	  	  	  
	  	  	  	  
	
N/A

	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

Non-US Pending Copyright Applications for Registration

 

	
Country

	
Title

	
Author

	
Class

	
Date Filed

	  	  	  	  	  
	
N/A

	  	  
	
N/A

	  	  
	  	  	  	  	  

 

  

4

  

Licenses

 

I.  Licenses/Sublicensees of [Name] as Licensor on Date Hereof

 

A.  Copyrights

 

	
N/A

	  	  

 

US Copyrights

 

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
Title of

U.S.

Copyright

	
Author

	
Reg. No.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

Non-US Copyrights

 

	
Country

	
Licensee Name

and Address

	
Date of

License/

Sublicensee

	
Title of

Non-U.S.

Copyrights

	
Author

	
Reg. No.

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

B.  Patents

 

	
N/A

	  	  

US Patents

 

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
Issue Date

	
Patent No.

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

 

  

5

  

US Patent Applications

 

	
Licensee Name

and address

	
Date of License/

Sublicense

	
Date Filed

	
Application No.

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

Non-US Patents

 

	
Country

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
Issue

Date

	
Non-U.S.

Patent No.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

Non-US Patent Applications

 

	
Country

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
Date

Filed

	
Application

No.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

C.  Trademarks

 

N/A

 

US Trademarks

 

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
U.S. Mark

	
Reg. Date

	
Reg. No.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

 

  

6

  

US Trademark Applications

 

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
U.S. Mark

	
Date Filed

	
Application

No.

	  	  	  	  	  
	
N/A

 

	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

Non-US Trademarks

 

	
Country

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
Non-U.S.

Mark

	
Reg. Date

	
Reg. No.

	  	  	  	  	  	  
	  	  	  	  	  	  
	
N/A

 

	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

Non-US Trademark Applications

 

	
Country

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
Non-U.S.

Mark

	
Date

Filed

	
Application

No.

	  	  	  	  	  	  
	
N/A

 

	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

D.  Others

 

	
Licensee Name

and Address

	
Date of License/

Sublicense

	
Subject

Matter

	  	  	  
	  	  	  
	
N/A

 

	  	  
	  	  	  
	  	  	  

  

7

  

 

	
  

	
II.  Licensees/Sublicenses of Microfluidic Systems as Licensee on Date Hereof

 

A.  Copyrights

 

N/A

 

US Copyrights

 

	
Licensor Name and

Address

	
Date of License/

Sublicense

	
Title of

U.S. Copyright

	
Author

	
Reg. No.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

Non-US Copyrights

 

	
Country

	
Licensor Name

and Address

	
Date of

License/

Sublicensee

	
Title of

Non-U.S.

Copyrights

	
Author

	
Reg. No.

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

B.  Patents

 

 

US Patents

 

	
Licensor Name

and Address

	
Date of

License/

Sublicense

	
Issue Date

	
Patent No.

	
Lawrence Livermore National Laboratory

	
June 2002

	
Aug 8, 2000

	
6100084

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

US Patent Applications

 

	
Licensor Name

and Address

	
Date of License/

Sublicense

	
Date Filed

	
Application No.

	  	  	  	  
	  	  	  	  
	
N/A

 

	  	  	  
	  	  	  	  
	  	  	  	  

 

  

8

  

Non-US Patents

 

	
Country

	
Licensor Name

and Address

	
Date of License/

Sublicense

	
Issue

Date

	
Non-U.S.

Patent No.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	
N/A

 

	  	  	  	  
	  	  	  	  	  

Non-US Patent Applications

 

	
Country

	
Licensor Name

and Address

	
Date of License/

Sublicense

	
Date

Filed

	
Application

No.

	  	  	  	  	  
	
N/A

 

	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

C.  Trademarks

 

 

US Trademarks

 

	
Licensor Name

and Address

	
Date of License/

Sublicense

	
U.S. Mark

	
Reg. Date

	
Reg. No.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

US Trademark Applications

 

	
Licensor Name

and Address

	
Date of License/

Sublicense

	
U.S. Mark

	
Date

Filed

	
Application

No.

	  	  	  	  	  
	
N/A

	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

  

9

  

 

Non-US Trademarks

 

	
Country

	
Licensor Name

and Address

	
Date of License/

Sublicense

	
Non-U.S.

Mark

	
Reg. Date

	
Reg. No.

	  	  	  	  	  	  
	  	  	  	  	  	  
	
N/A

 

	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

Non-US Trademark Applications

 

	
Country

	
Licensor Name

and Address

	
Date of License/

Sublicense

	
Non-U.S.

Mark

	
Date

Filed

	
Application

No.

	  	  	  	  	  	  
	  	  	  	  	  	  
	
N/A

 

	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

D.  Others

 

	
Licensor Name and Address

	
Date of License/

Sublicense

	
Subject Matter

	  	  	  
	  	  	  
	
N/A

 

	  	  
	  	  	  
	  	  	  

 

10

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