Document:

EX-10.2 - Letter Agreement with William M. Smith dated March 4, 2014

March 4, 2014

William M. Smith
95 Howard Way
Atherton, CA  94027

RE:  Secondment to Fluidigm Canada Inc.

Dear Bill:

This is to confirm the terms and conditions relating to your secondment by Fluidigm Corporation (“Home Company”) to Fluidigm Canada Inc. (“Host Company”), a subsidiary of the Home Company.  During the period of your secondment, the terms and conditions of your offer letter with Home Company dated May 2, 2000 (“the Offer Letter”) will remain applicable, including your at-will status, unless expressly modified by the contents of this letter.   

At the end of your secondment to Host Company, the terms contained in this letter will cease to have effect and you will revert to the terms and conditions of the Offer Letter.  In the event that this secondment is followed by another secondment, whether with Host Company or another entity, a new secondment letter will be sent to you setting out the terms and conditions for such subsequent secondment. 

Your secondment is subject to your obtaining any required passport, visa, resident and/or work permits and any related documents, as well as compliance with any required medical or government clearances.  

Secondment

During the period of your secondment, you will perform the role of President and Acting General Manager for Host Company.  Your responsibilities will include, but are not limited to, overseeing operations and integration with Host Company.  During the course of your secondment, you will remain an employee of Home Company, but your services will be temporarily seconded to Host Company.  You will be based at the office of Host Company at 70 Esna Park Drive, Unit 12, Markham, ON  L3R6E7 Canada.

While you are in Canada during your secondment, you shall not have any authority to negotiate on behalf of Home Company, or to modify or accept contracts on behalf of Home Company, or to otherwise bind Home Company to any contract with any third party or to conduct any business in the name of or on behalf of Home Company.  Further, any contract presented to you that is intended to bind Home Company must be entered into by a duly authorized officer of Home Company located in the principal business office of Home Company in South San Francisco, CA. 

Compensation and Benefits

During your secondment, you will receive the following compensation:

Annual Base salary: USD equivalent of $325,000.00

Retirement Plans: You will continue to participate in Home Company’s 401k retirement plan while on secondment.  The terms of your participation will be consistent with plan rules and eligibility.

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Health and Welfare Plans: When possible, and in accordance with plan rules and eligibility, you will be covered by Home Company’s health and welfare plans.  If international coverage is not available through Home Company’s plans, Human Resources will contact you to arrange for supplementary coverage.

Work and Holiday Schedule: Your work and holiday schedule will be in accordance with the work and holiday schedule of Canada.  

Vacation and Leaves: Vacation eligibility and accrual and entitlements to leaves of absence will be determined in accordance with Home Company policies.

Business Expenses: Home Company will be responsible for reimbursing you for all business expenses reasonably and properly incurred on Host Company business.  You should follow the applicable procedure for reimbursement of reasonable business expenses under your Home Company’s policies, including the requirement of producing appropriate supporting documentation for the reimbursement of such expenses.

Tax Equalization

During the period of your secondment, you will pay approximately the same U.S. income (federal, state and local) and social security taxes that you would have paid had you remained in California, the United States.  To accomplish this, there will be an amount deducted from your pay corresponding to the U.S. federal and California income tax, as well as U.S. social security tax, that you would have paid had you lived and worked in California (“Retained Hypothetical Tax”).  This Retained Hypothetical Tax will be calculated and deducted from your compensation and will replace actual withholdings.  After your tax returns are prepared, your hypothetical tax will be recomputed to reflect the actual facts for the year (“Final Hypothetical Tax”) and the difference between the Retained Hypothetical Tax and the Final Hypothetical Tax will be settled promptly thereafter.  

You will be required to comply with all U.S., state and local and foreign laws regarding personal income and social taxes.  You will be responsible and liable for the submission of tax returns for the United States and California and Canada.  To assist you in this regard, Home Company will designate a tax return preparer and pay for the preparation of required tax returns and tax equalization settlement calculations for you for all tax years affected by the secondment.  For purposes of Home Company’s tax equalization policy, you agree to either personally provide Home Company with a copy of your completed tax returns applicable to the years of your secondment or allow the tax return preparer to provide this information directly to Home Company for you.

Without prejudice to the above, you further agree:

		
	-
	to authorise Home Company to deduct the Retained Hypothetical Tax from your salary and other earnings on a monthly basis; and

		
	-
	that any additional tax amounts due from you when the Final Hypothetical Tax is computed will be settled by you promptly.

You also agree that Home Company or Host Company shall be entitled at any time during your employment, or in any event on termination, to deduct from your remuneration or from any other monies due to you from Home Company or from Host Company (or from any other group company), any amounts owing from you as a result of the application of these tax equalization provisions, whether in respect of hypothetical tax withholding or final tax equalization balances (including interest and penalties attributable to you).

You agree that, if any amounts remain owing after termination of employment, and the Fluidigm group company in question is unable to recover the full amount due by making deductions from your remuneration 

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or from any other monies due to you from any Fluidigm group company, you will pay to Home Company or Host Company on demand and in full a sum equal to any amounts owing.  You agree that this sum shall be recoverable as a debt, together with all costs, including legal costs, incurred by any Fluidigm group company in recovering the sum.  

Finally, if you were subject to social security charges in your host location and the host location permits you to apply for a refund of such charges, you agree to apply for such refund, and have such refund paid to Host Company or Home Company where possible.  If refund directly to Host Company or Home Company is not possible, then you authorize Home Company or Host Company, as applicable, to deduct and set off any amounts refunded to you from any payments due from Home Company or Host Company to you, up to the maximum extent permitted by law.  If the set-off is insufficient to cover the refund that you received, you agree to write a personal check for the amount still outstanding.  The obligations under this clause continue after termination of your secondment and/or employment.  

Any amounts paid to you in connection with tax equalization, that meet the requirements of Section 1.409A-1(b)(8)(iii) of the Treasury Regulations under Section 409A, shall be paid no later than the end of the second calendar year next following the calendar year to which the compensation subject to the tax equalizations relate. All reimbursements under this letter, including amounts paid for tax equalization that do not meet the requirements of Section 1.409A-1(b)(8)(iii) of the Treasury Regulations shall be made no later than the end of the calendar year next following the calendar year in which the applicable expenses are incurred.  
Other Benefits 

During the period of your secondment to Host Company, you shall be eligible to be provided with certain employee fringe benefits as you will be an expatriate working and living in Canada.  Further details of these expatriate fringe benefits that you are eligible to receive are provided below.

These fringe benefits shall not be considered for purposes of determining any vacation pay or similar.

Pre-Secondment Support Services

To ensure that you are prepared to assume your new role in Canada, you will be provided with pre-secondment services in accordance with the Relocation Policy prior to deployment to Canada.

Passports, Visas, Residence and Work Permits.  Home Company shall pay all costs for obtaining any required passports, visas, resident and/or work permits for you and any related documents and all associated administrative fees imposed, as may be required in connection with your secondment to Host Company and your business activities on behalf of Host Company.

Pre-Secondment Trip.  Home Company shall pay for two trips to include business class airfare, local transportation, per diem and lodging per Home Company policy for a pre-assignment trip not exceeding five (5) days for you and your accompanying spouse.  

Other International Secondment Allowances and Benefits

During your secondment, you shall be eligible for the following secondment allowances and benefits up to USD $125,000.00, but only for the duration of the secondment:

Housing Assistance.  You will be provided with suitable housing consistent with the local market, including furniture as needed and all basic utilities (including telephone) and insurance.  Standard house upkeep such as house cleaning will be at your personal expense.

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Where possible, Home Company will sign the apartment/home lease and will pay all rental expenses directly.  The terms of any lease must be approved by Home Company prior to acceptance.

Home Company will provide property maintenance and upkeep services related to your vacant Atherton, CA property while you are on the secondment.  You are responsible for the costs of mortgage, insurance and taxes on the property.  In the event that the property is rented, you agree to turn over to Home Company the gross rents collected.  You are responsible for costs of mortgage, insurance and taxes on the property.

If you are required to vacate your principal residence prior to departure for Canada, you will be reimbursed for reasonable costs for meals, lodging, laundry, and other incidentals for a maximum of seven days.  You will also be reimbursed for temporary living expenses in order to provide for a maximum of seven days of temporary living if living accommodations are not ready when you arrive in your host location.  Reasonable costs for meals, lodging, laundry, and other incidentals are reimbursable during this period.  

Health Club.  You will be provided membership to a country club that is consistent with your current membership at home location.

Relocation Expenses. Home Company will reimburse business class air travel and incidental travel expenses for you and your accompanying spouse to travel to Canada (pre-visa) and from Canada  at the end of your secondment (except as indicated below under “Term and Termination”).

You will be reimbursed up to USD $5,000.00 for shipping your personal possessions to Canada in connection with the start and also the conclusion of your secondment (except as indicated below under “Term and Termination”).

Transportation. To assist you and your spouse with transportation costs in Canada, Home Company will provide you with an automobile for use in the performance of your duties as well as an additional automobile for your spouse (which may be rented on occasions).  In addition, Home Company will pay for all of the expenses of operating, maintaining and insuring such automobile[s] as well as applicable fees and taxes.  You are responsible for fuel costs related to personal use.  The automobile[s] will be the customary vehicle[s] in the host location for locals of your position.  

Home Trips.  You and your accompanying family members are each eligible for several completed round trip per 9-months’ period to Atherton, CA to maintain home location ties.  Home Company will not allow the carryover of any unused home leave trips.  Home Company will reimburse round-trip coach airfare for you and your accompanying family members.  In accordance with company policy, you can use your frequent flyer miles to upgrade from coach airfare.  You are expected to obtain pre-approval from Canada management for your specific travel dates and visit Home Company and coordinate your travel with business trips.

At the end of your secondment, all related allowances and benefits will terminate. 

Exemption from Code Section 409A for U.S. Taxpayers.  If you are subject to U.S. income taxation, any amounts paid to you in connection with tax equalization, that meet the requirements of Section 1.409A-1(b)(8)(iii) of the Treasury Regulations under U.S. Internal Revenue Code Section 409A, shall be paid no later than the end of the second calendar year next following the calendar year to which the compensation subject to the tax equalizations relate. All reimbursements under this letter, including amounts paid for tax equalization that do not meet the requirements of Section 1.409A-1(b)(8)(iii) of the Treasury Regulations shall be made no later than the end of the calendar year next following the calendar year in which the applicable expenses are incurred.

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Standard of Conduct

During the period of your secondment, you will comply with the rules and procedures of Host Company, in addition to those of Home Company applicable despite your secondment abroad. You will be subject to the day-to-day management and control of the President & CEO of Home Company, from whom you will take instructions. 

You are also expected to abide by the laws and regulations of Canada.  Accordingly, you are required to maintain a standard of conduct that does not bring discredit upon yourself, your supervisors or upon Host Company.

Term and Termination 

This secondment will commence as soon as is reasonably practicable after the date hereof.  This secondment is anticipated to last for up to one year.  At its discretion, however, Home Company may terminate this secondment before the expiration of that period in accordance with this letter or extend the secondment as required.  If your secondment goes beyond one year, the terms and conditions of your secondment will be reviewed by Home Company.  

Notwithstanding anything in this letter agreement to the contrary, Home Company may terminate this secondment at any time for any reason, however, we will attempt to give you one (1) month’s advance notice in order to assist you in preparing for the transition.

Home Company’s intention is that you will return to work for Home Company in a suitable capacity, however, you remain at all times an at-will employee of Home Company and shall not have an entitlement or guarantee of any position with Home Company.  For the avoidance of doubt, the termination of your employment with Home Company shall automatically terminate your secondment under this letter.  The cost of relocating you back to your home location will be covered in accordance with the Relocation Policy.

Notwithstanding the foregoing, Home Company may terminate your employment at any time if your conduct is such as to constitute Cause (as defined below) for summary dismissal.  In the event your secondment or your underlying employment is terminated by reason of Cause, or if you voluntarily terminate employment or accept employment with another organization (unrelated to Home Company) within six months of the secondment start date, you will be solely responsible for any and all expenses related to the relocation of you and your family back to your home jurisdiction, including without limitation airfare, shipping costs, temporary housing expenses, and the like. For purposes of this letter agreement, “Cause” means (i) an act of dishonesty made by you in connection with your responsibilities as an employee, (ii) your conviction of, or pleading guilty to any indictable offense or any crime involving fraud, embezzlement or any other act of moral turpitude, (iii) your gross misconduct, (iv) your unauthorized use or disclosure of any proprietary information or trade secrets of Home Company, Host Company, or any other party to whom you owe an obligation of nondisclosure as a result of your relationship with Home Company or Host Company; (v) your willful breach of any obligations under any written agreement or covenant with Home Company or Host Company; or (vi) your continued failure to perform your employment duties after you have received a written demand of performance from Home Company which specifically sets forth the factual basis for Home Company’s belief that you have not substantially performed your duties and your failure to cure such non-performance to Home Company’s satisfaction within 10 business days after receiving such notice.  In such circumstance, your employment shall end immediately without notice or pay in lieu thereof or any other form of compensation, except pay to your last day worked and any accrued vacation pay owing.

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Third Party Beneficiary

Each of Home Company and Host Company is a third party beneficiary of this agreement and each of them has the full right and power to enforce rights, interests and obligations under this agreement without limitation or other restriction.

Governing Law

This temporary amendment to the Offer Letter will be governed by and construed in accordance with the laws of the State of California.  You expressly agree that Canada law does not apply and waive all claims under Canada law.   Notwithstanding the foregoing, to the extent that you are entitled to rights, benefits or compensation under the laws of both Canada and your home jurisdiction, you agree that you will be entitled to such rights, benefits, or compensation that are no greater than those provided to you under the terms of this letter agreement, so that any advantages that may accrue to you under the laws of both jurisdictions may not be combined.

Severability

If any term herein is unenforceable in whole or in part, the remainder shall remain enforceable to the extent permitted by law.  

Please confirm your agreement to the terms of this secondment by signing and dating the duplicate copy of this letter, in the space provided.

Yours sincerely,

/s/ Gajus V. Worthington
Gajus V. Worthington
For and on behalf of Home Company

I agree to the terms and conditions of my secondment to Host Company in accordance with this letter.  I understand that nothing contained herein shall be considered to be a guarantee of employment for the estimated duration of the secondment.

	
		
	/s/ William M. Smith
     William M. Smith
	March 4, 2014
Date

6EX-10.3 - License Agreement with MDS dated July 17, 2008

CONFIDENTIAL TREATMENT

LICENSE AGREEMENT
THIS AGREEMENT made this 17th day of July, 2008 
BETWEEN:
MDS Analytical Technologies, a business unit of MDS INC., a company incorporated pursuant to the laws of Canada, through its Sciex division, having divisional offices at 71 Four Valley Drive, Concord, Ontario, Canada, L4K 4V8 
(hereinafter, “MDS AT”) 
and
DVS Sciences Inc., a company incorporated pursuant to the laws of Ontario, having its head office at 70 Peninsula Crescent, Richmond Hill, Ontario, Canada, L4S 1Z5
(hereinafter, “DVS”)
WHEREAS:
		
	A.
	MDS AT is the owner by assignment of certain intellectual property rights, including, but not limited to, the Licensed IP as herein defined and specified in Schedule A hereto.

		
	B.
	MDS AT is willing to grant and DVS wishes to obtain a worldwide exclusive, royalty bearing license under the Licensed IP to [*****], as herein defined.

		
	C.
	MDS AT is further willing to grant and DVS wishes to obtain a worldwide, non-exclusive, royalty bearing license under the Licensed IP, with the right to [*****], as herein defined

THEREFORE, in consideration of the mutual promises set forth below, it is agreed as follows:

1.DEFINITIONS
In this Agreement the following terms shall have the following meanings, whether in singular or plural form:

		
	1.1
	“Flow Cytometer” means an analytical instrument that provides assay of a biological sample based on the analysis of individual cells or particles.

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

		
	1.2
	“Flow Cytometry” means the art of conducting assays with a Flow Cytometer.

		
	1.3
	“Field” means [*****].

		
	1.4
	Licensed Intellectual Property” or “Licensed IP” means the patents and/or patent applications listed in Schedule A hereto, and all continuations, continuations-in-part and divisions hereof, and all further patent applications claiming or describing inventions contained in, or claiming priority to, any of the foregoing, and all patents which may issue from any of such patent applications.

		
	1.5
	“Licensed Processes” means processes and technology that are within a Valid Claim of the Licensed IP.

		
	1.6
	“Licensed Product” means the ICP MS-based Flow Cytometer that is within a Valid Claim of Licensed IP and [*****].

		
	1.7
	“Licensed Reagent” means reagent or kit that is within a Valid Claim of Licensed IP.

		
	1.8
	“Licensed Technology” means Licensed Reagents and the Licensed Products.

		
	1.9
	“Gross Sales”, for any Licensed Technology.  In the case of a sale of such Licensed Technology by DVS to a purchaser who is bona fide at arm’s-length from and unrelated to DVS with no consideration involved other than the invoice price, Gross Sales means the gross selling price invoiced by DVS to such purchaser for such Licensed Technology.  In all other cases, “Gross Sales” means Gross Sales that would have applied had the Licensed Technology in question been sold to a purchaser who was bona fide at arm’s-length and unrelated to DVS, with no consideration involved other than the invoice price.

		
	1.10
	“Sublicensee” means any party with which DVS enters into a sublicense agreement in accordance with this Agreement.  For greater clarity it is understood that any payments made under this section are deemed to be royalty payments and therefore apply toward the minimum royalties in section 3.

		
	1.11
	Licensed Products incorporating Licensed Technology shall be deemed to have been sold or disposed of for value when they are shipped to a customer, or when they are invoiced, or when they are leased, or when any value whatsoever is received for them by DVS or a Sublicensee, whichever is first.

		
	1.12
	“Year” means a calendar year.

		
	1.13
	All sums mentioned herein shall be in Canadian dollars unless the context otherwise requires.

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

		
	1.14
	“Improvements” means improvements and developments [*****].

		
	1.15
	“Valid Claim” means a claim in an issued patent of the Licensed IP which has not (i) expired, (ii) been finally adjudicated invalid or unenforceable, (iii) found invalid or unenforceable, or (iv) been abandoned.

2.GRANT OF LICENSE

		
	2.1
	MDS AT hereby grants to DVS an exclusive, royalty bearing worldwide license under the Licensed IP, with the right to sublicense [*****] within the Field.

		
	2.2
	MDS AT hereby grants to DVS a non-exclusive, royalty bearing worldwide license under the Licensed IP, [*****] Licensed Reagents in fields other than the Field.

		
	2.3
	Notwithstanding section 2.2, MDS AT retains the right to [*****].

3.FEES AND ROYALTIES

		
	3.1
	Fee in the amount of [*****] dollars, to be guaranteed by manufacturing/distributing partner of DVS (the “Guarantor”), shall be paid by DVS to MDS AT by or before December 31, 2010.  Royalties paid in calendar 2010 shall be applied against this fee.

		
	3.2
	DVS shall pay to MDS AT royalties (the “Royalties”) as follows:

		
	(i)
	[*****] of the Gross Sales of Licensed Technology sold.

		
	(ii)
	If DVS grants a sublicense to a Sublicensee to make Licensed Products, DVS shall pay to MDS AT royalties equal to [*****] of the gross sales of Licensed Products sold by the Sublicensee and [*****] of any fees charged for the grant of such sublicense.  For greater clarity, it is understood that any payments made under this subsection 3.3 are deemed to be royalty payments and therefore apply toward the minimum royalties required in section 5.

		
	3.3
	No Royalties shall accrue or be owed to MDS AT from DVS, including without limitation any payments under Sections 3.1 and 3.2, prior to [*****].

4.DUE DILIGENCE

		
	4.1
	DVS shall, itself or through a Sublicensee, use commercially reasonable efforts to effect introduction of Licensed Technology into the marketplace.

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

5.MINIMUM ROYALTIES

		
	5.1
	DVS shall pay to MDS AT minimum royalties under this Agreement as follows:

		
	(i)
	[*****] dollars, and

		
	(ii)
	[*****]: two hundred fifty thousand ($250,000) dollars.

		
	5.2
	If DVS fails to pay the minimum royalties set forth in subsection 5.1, and such failure to pay is not cured pursuant to section 13.3 herein, such failure shall constitute a breach of this Agreement.

		
	5.3
	The minimum royalties payable for the Year in which the last-to-expire Valid Claim expires shall be pro-rated based on date of expiration of such last-to-expire Valid Claim.  No minimum royalties shall be payable for any subsequent Year following the expiration of the last-to-expire Valid Claim.

6.PAYMENT OF ROYALTIES

		
	6.1
	Royalties under subsection 3.2 shall be calculated quarterly, on the last day of each quarter of the Year (the “Quarter”), and should be payable within one (1) month following the end of each Quarter for Gross Sales by DVS which have occurred during the Quarter in question until the expiration of the last-to-expire Valid Claim.

		
	6.2
	Subject to Section 5.3, the Royalty payment for each Quarter of each Year beginning with the year [*****] shall be at least equal to the pro-rated minimum royalty payment applicable to that Quarter for such Year.  Any overpayment for each Quarter resulting from payment of the minimum royalty may be credited against subsequent royalties otherwise payable for the Year in question and the subsequent Year.

		
	6.3
	All payments due to MDS AT under this Agreement shall be made to the credit of MDS AT.  Where Gross Sales are in a currency other than Canadian dollars, the conversion into Canadian dollars shall be calculated at the rate of exchange for DVS to sell such currency quoted by the Canadian Imperial Bank of Commerce on the last day of the Quarter in respect of which payment is due.

		
	6.4
	For greater clarity, it is understood and agreed that royalty will be paid only once for each Licensed Technology.

7.RECORDS AND REPORTS

		
	7.1
	Each royalty payment made under this Agreement shall be accompanied by a statement showing particulars of all Gross Sales for the Quarter in question, and the total royalty due and payable to MDS AT.

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

		
	7.2
	DVS shall, and shall require each of its Sublicensees, to keep true and accurate records and books of account containing all data necessary for the determination of the royalties payable hereunder and to evaluate the performance of DVS or its Sublicensee.  MDS AT may, upon reasonable prior notice (which shall include the name of the accountant referred to below), have such records and books of account inspected (not exceeding twice per annum) by a duly authorized independent chartered accountant, to verify the accuracy of the reports made hereunder.  DVS or the Sublicensee may, by thirty (30) days’ notice to MDS AT upon receiving the notice of inspection referred to above, object to the accountant selected by MDS AT if such accountant has a conflict of interest, reasonably determined, due to having provided services currently or during the immediately preceding two (2) years to a competitor of DVS or the Sublicensee in question, and MDS AT shall then select a different independent chartered accountant who has no such conflict of interest.  The accountant shall maintain its findings relating to such inspection in confidence but may disclose to MDS AT full particulars of any deficiencies or inaccuracies in reports or payments by DVS.

8.IMPROVEMENTS (If Applicable)

		
	8.1
	Each party shall [*****] during the life of this Agreement.

		
	8.2
	Improvements developed by MDS AT may [*****] be deemed to be included in this Agreement and be subject to the terms hereof, and any such application for patents or equivalent protection made in respect thereof shall [*****].

		
	8.3
	Should DVS, during the term of this Agreement, develop any Improvements [*****] , DVS shall disclose the same to MDS AT.  DVS shall grant to MDS AT a non-exclusive, royalty free[*****] license, [*****] to [*****] such Improvements in research and development only.

9.PATENTS AND PATENT APPLICATIONS

		
	9.1
	At all times during the term of this Agreement and, [*****], DVS shall control, in consultation with MDS AT, [*****] prosecuting any [*****] relating to [*****].   DVS shall advise MDS AT of [*****] in a timely manner to allow MDS AT to comment thereon and shall take into fair consideration any such comments.

		
	9.2
	MDS AT shall control, in consultation with DVS, [*****] prosecution [*****] of patents and patent applications for the Licensed Reagents not in the Field.  MDS AT shall advise DVS of [*****] in a timely manner to allow DVS to comment thereon and shall take into fair consideration any such comments.

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

		
	9.3
	DVS and MDS AT each agree to provide reasonable support to the other for the prosecution [*****] and Licensed Reagents not in the Field under Sections 9.1 and 9.2, respectively, at no cost to the other Party.

		
	9.4
	If MDS AT believes, [*****] that it will not [*****] obtain a [*****] patent [*****] included in the Licensed IP, or that it would not be [*****] maintaining one of the Licensed IP, then it may discontinue such prosecution or maintenance, but it shall give DVS advance notice of such intention to discontinue so that DVS may [*****] the patent application or patent in question.  In this instance, the patent application or patent in question will [*****].

10.INFRINGEMENT OF THIRD PARTIES

		
	10.1
	MDS AT shall have the right to bring an action for infringement of the Licensed IP against alleged infringers.  [*****]

		
	10.2
	If DVS’s exercise of their rights under this license infringes or is alleged or suspected to infringe on the intellectual property rights of an arm’s-length third party, then DVS shall so advise MDS AT, and DVS may:

		
	(i)
	determine that [*****] does not infringe the third party’s intellectual property rights, or

		
	(ii)
	attempt [*****], or

		
	(iii)
	obtain a license [*****], or

		
	(iv)
	[*****].

11.WARRANTIES

		
	11.1
	MDS AT is the owner of certain intellectual property rights, including, but not limited to, the Licensed IP referred to in Schedule A hereto and has the right to grant this License.

		
	11.2
	MDS AT, DVS and Guarantor each represent that they respectively have the capacity and authority to enter into this Agreement.

		
	11.3
	The Licensed IP is in good standing and to the knowledge of MDS AT the Licensed IP is valid and enforceable.

		
	11.4
	MDS AT otherwise makes no warranties, express or implied, as to any matter whatsoever, including without limitation:

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

		
	(i)
	the condition of the Licensed Technology or results derived therefrom, or

		
	(ii)
	the merchantability, utility, or fitness for a particular purpose of the Licensed Technology or results derived therefrom, or

		
	(iii)
	the scope of the Licensed IP or that the Licensed IP may be exploited by DVS without infringing other patents.

12.INDEMNIFICATION

		
	12.1
	DVS will indemnify, defend and hold harmless MDS AT, its Affiliates, employees, representatives or agents, from and against all actions, suits, claims or proceedings and any damages, costs expenses (including legal costs) or liability of any kind or incurred by MDS AT in any action whatsoever against MDS AT, its Affiliates, employees, representatives or agents, including all infringement actions relating to practice of the Licensed Technology and liability therefrom:

		
	(i)
	arising out of the performance by DVS or by others at the request of DVS (more specifically Sublicensees of DVS) functions and/or products contemplated by this Agreement, or

		
	(ii)
	resulting from the negligent acts or omissions of DVS’s employees, representatives or agents (more specifically Sublicensees of DVS) in connection with this Agreement, whether or not information or material supplied by MDS AT is utilized, or

		
	(iii)
	in respect of any direct, consequential or other damage awarded against MDS AT resulting from the use, sale or other disposition by DVS or its customers of Licensed Technology.

		
	12.2
	MDS AT will indemnify, defend and hold harmless DVS, its Affiliates, employees, representatives or agents, from and against all actions, suits, claims or proceedings and any damages, costs expenses (including legal costs) or liability of any kind or incurred by DVS in any action whatsoever against DVS, its Affiliates, employees, representatives or agents:

		
	(i)
	arising out of the performance by MDS AT or by others at the request of MDS AT functions and/or products contemplated by this Agreement, or

		
	(ii)
	resulting from the negligent acts or omissions of MDS AT’s employees, representatives or agents in connection with this Agreement.

		
	12.3
	DVS agrees that it and any Sublicensee will be required to maintain, for so long as is reasonably necessary, general comprehensive liability and product liability insurance in an amount reasonably necessary to enable them to carry out their obligations under this section.

		
	12.4
	In the event that any of an Indemnitor’s agents, employees or permitted assigns attend at the Indemnitee facilities or use Indemnitee’s equipment in relation to this 

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

Agreement, Indemnitor assumes responsibility and will exonerate and hold harmless Indemnitee from and against any liability or any damage to property or injury including death to persons that may be caused by said persons when on Indemnitee property, and shall also be responsible for any injury or death which may be sustained by such persons and for public liability insurance for the negligent acts or omissions of such persons as well as workers compensation coverage for such persons while on Indemnitee property.

		
	12.5
	The indemnification obligations of the Parties under Sections 12.1, 12.2 and 12.3 shall apply only if:

    
		
	(i)
	Indemnitee promptly notifies the Indemnitor in writing after the Indemnitee receives notice of any claim; and

		
	(ii)
	Indemnitor is given the opportunity to manage and control the defense and/or settlement of such claim; and

		
	(iii)
	Indemnitee reasonably co-operates with the Indemnitor and its legal representatives in the defense and/or settlement of any such claim; and

		
	(iv)
	Indemnitee refrains from making any admission of liability or any attempt to settle the claim without the Indemnitor’s prior written consent.

		
	12.6
	Notwithstanding the foregoing, the Indemnitor shall not be liable to indemnify any Indemnitee to the extent that the claim arises out of the Indemnitee’s negligence, bad faith, willful misconduct, or breach of this Agreement or any obligation to a third party.

13.TERM AND TERMINATION

		
	13.1
	This Agreement is effective as of the date written above and shall, subject to the remainder of this section, remain in force until the expiry of the last Valid Claim unless terminated earlier pursuant to sections 13.2, 13.3 and 13.4 herein.

		
	13.2
	MDS AT may at its option terminate this Agreement immediately (and shall promptly give DVS notice of such termination) and avail itself of such other legal remedies as are appropriate, in the event that DVS at any time becomes insolvent, or makes an assignment for the benefit of creditors, or has a petition in bankruptcy filed against it.

		
	13.3
	If either party commits a material breach of this Agreement, then the aggrieved party may give written notice of such breach to the defaulting party.  If such breach is not cured within sixty (60) days from the date of the notice, or if the breach is correctible but not within such sixty (60) days, then if the defaulting party does not take prompt steps within the sixty (60) days to cure the default and diligently pursue such steps thereafter, then the aggrieved party may terminate this Agreement by written notice to the other, the written notice to take effect when it is given.

		
	13.4
	DVS may terminate this Agreement at any time after the date hereof, either in its entirety or as to any country or countries.  Such termination shall be on at least ninety (90) days’ 

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

written notice and upon payment of the Guarantee under section 3.1 herein, and fulfillment of such other obligations as set for in section(s) 6, 8, 9, 12, 14, 16, 17, 19, and 20.3.

14.CONFIDENTIAL INFORMATION

		
	14.1
	Each party agrees to respect and maintain Confidential Information as defined in this section 14.1, which it acquires from the other party by virtue of this Agreement, and will not disclose to any third party nor make any use of such Confidential Information without prior written consent of the other party, which consent shall not unreasonably be withheld provided that DVS takes such reasonable and contractual steps to ensure Sublicensees agree to be under a similar duty of confidentiality with respect to MDS AT’s confidential information as DVS.  “Confidential Information” shall mean information deemed to be confidential by MDS AT or DVS (“Provider”) and disclosed to the other party (“Recipient”)in confidence and including, but not limited to, know-how, trade secrets, all information, knowledge or data of an intellectual, technical, scientific, commercial, financial or industrial nature, either in written documentation, oral or visual information, whether by inspection of parts or equipment or otherwise, subject to the exceptions set out below.  Oral information deemed to be confidential by the Provider, shall be reduced to writing within thirty (30) days from the date of disclosure and provided to the Recipient.

		
	14.2
	The obligations of confidentiality in subsection 14.1 shall not apply to information which the Recipient can establish by written proof:

		
	(i)
	is or becomes a part of the public domain other than by a disclosure in breach of this Agreement, or

		
	(ii)
	was known to the receiving party prior to the Recipient’s receipt of the information in question, or

		
	(iii)
	comes into the hands of the Recipient from a third party who is entitled to make such disclosure and has no obligation of confidence to the disclosing party, or

		
	(iv)
	was developed by the Recipient independently of the information received from the disclosing party, or

		
	(v)
	is approved for release by written authorization of both DVS and MDS AT.

15.RIGHT OF ASSIGNMENT

		
	15.1
	The obligations of DVS hereunder, including the obligation to report and pay royalties, shall run in favour of the successors and assigns or other legal representatives of MDS AT.

		
	15.2 
	In the event of the sale, consolidation, reorganization or otherwise of DVS of all or substantially all of the assets related to the Licensed Technology, MDS AT shall consent to negotiate a commercially reasonable license to such person, firm or corporation succeeding to all or substantially all of DVS’s business relating to the Licensed Technology provided that such person, 

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

firm or corporation shall, without delay, accept in writing the provisions of this Agreement and agree to become in all respects bound thereby in the place of DVS.

16.USE OF OTHER PARTY’S NAME

		
	16.1
	Neither party shall use the other party’s name in any advertising material relating to Licensed Technology, without the prior written consent of the other party, as well as consent as to the content of such advertising material relating to the Licensed Technology by the other party.

		
	16.2
	Each party shall obtain the prior approval of the other, such approval not to be unreasonably withheld or delayed, to the content of any written publicity, news release or other public statement or announcement relating to this Agreement, prior to originating or releasing it.

17.INVALID CLAUSE

		
	17.1
	If any term of this Agreement is held invalid by a court of competent jurisdiction, such provision shall be deemed to be of no effect and the remainder of this Agreement shall continue in force.  The parties shall use their best efforts to replace the invalid term with a term which is valid and as nearly as possible achieves the intent of the invalid term.

18.NO AGENCY

		
	18.1
	Each party is an independent contractor, and neither is an agent of the other nor is responsible for the debts and obligations of the other.  Neither party has any authority to commit or bind the other.

19.NOTICES

		
	19.1
	All notices and other communications required or permitted to be given hereunder shall be in writing and shall be sent to the following addresses or such other addresses as the parties may from time to time advise:

MDS INC., through its MDS AT division, 
[*****]
[*****]
Attention: [*****]
[*****]
Facsimile: [*****]
Copy to: [*****]

DVS Sciences Inc.
[*****]
[*****]
Attention: [*****]

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

		
	19.2
	In order for any notices, requests, directions, or other communications to be effective, they will be delivered in person; or, sent by registered mail, or facsimile addressed to the party for whom it is intended at the above-mentioned address and will be deemed to have been received, if sent by registered mail, within five (5) days from the date of the postal receipt; if sent by facsimile or e-mail, when transmitted, as long as the sender subsequently confirms with the recipient that it has been received.  The address of either party may be changed by notice in the manner set out in this provision.

20.GENERAL

		
	20.1
	This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

		
	20.2
	This Agreement constitutes the entire understanding between the parties concerning the subject matter hereof, and any amendments or modification shall not be binding upon each party unless it is in writing and signed by a duly authorized representative of each party.

		
	20.3
	This Agreement shall be interpreted and governed by the laws of the Province of Ontario in Canada as applied to transactions taking place entirely within Ontario between Ontario residents and whose courts shall have exclusive jurisdiction in respect of all disputes relating to or arising out of this Agreement.

		
	20.4
	The persons signing on behalf of the parties to this Agreement hereby warrant and represent that they have authority to execute this Agreement on behalf of, and bind, the party for whom they have signed.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written.
	
			
	DVS Sciences, Inc.
	 
	MDS Analytical Technologies,
through its Sciex division

	Per: [*****]
	 
	Per: [*****]

	Name: [*****]
	 
	Name:  [*****]

	Title: [*****]
	 
	Title:  [*****]
          [*****]

	 
	 
	 

	Guarantor
	 
	 

	Per: [*****]
	 
	 

	Name: [*****]
	 
	 

	Company:  [*****]
	 
	 

	Title:  [*****]
	 
	 

    	
		
	 
	[*****]

	 
	[*****]

	 
	[*****]

	 
	[*****]

	 
	[*****]

[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

CONFIDENTIAL TREATMENT

SCHEDULE A
	
			
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[*****]     Certain portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]