Document:

dais_ex101.htm

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission. 

 

EXHIBIT 10.1

 

LICENSE AND SUPPLY AGREEMENT

 

THIS AGREEMENT, is made this 26th day of October, 2012 by and between MG Energy LLC, a Delaware limited liability company, having its registered office at 615 South DuPont Highway, Dover, Delaware 19901 U.S.A. (hereinafter referred to as “LICENSEE”) and Dais Analytic Corporation, a Florida corporation having its headquarters at 11552 Prosperous Drive, Odessa, Florida 33556 U.S.A. (hereinafter referred to as “LICENSOR”) LICENSOR and LICENSEE are referred to hereinafter individually as the “Party” and collectively as the “Parties.”

 

WITNESSETH:

 

WHEREAS, LICENSEE has the means to manufacture and sell energy recovery ventilators and other HVAC products; and

 

WHEREAS, LICENSOR manufactures and sells energy recovery ventilators, energy recovery ventilator cores containing certain moisture transfer membranes and moisture transfer membranes for use in various applications including, but not limited to, energy recovery ventilators within the HVAC market segment; and

 

WHEREAS, LICENSOR holds the rights to certain intellectual property pertaining to certain moisture transfer membranes and the use thereof in energy recovery ventilators and other HVAC applications, consisting of certain Intellectual Property Rights, Know-How, Trade Secrets, and Patents; and

 

WHEREAS, LICENSEE desires to obtain an exclusive license in the Territory to utilize the Intellectual Property, and certain improvements thereto  in the manufacture and sale of energy recovery ventilators in the Field (as defined herein) and to purchase its requirements of Products from LICENSOR for use pursuant to terms and conditions of said license; and

 

WHEREAS, LICENSOR desires to grant such license and sell LICENSEE Products for use pursuant to said license; and

 

WHEREAS, LICENSOR and LICENSEE now wish to enter into this agreement on the terms set forth below.

 

NOW, THEREFORE, in consideration of the promises contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which hereby is acknowledged, the Parties hereto agree as follows:

 

Article 1.  Definitions

 

1.01           “Confidential Information” shall mean communication or data, in any form, including but not limited to oral, written, observations, or viewing, graphic or electromagnetic forms which a Party desires to protect against unrestricted disclosure or competitive use including, but not limited to, LICENSOR’s Intellectual Property.

 

  

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1.02           “Energy Recovery Ventilator” shall mean a type of mechanical equipment, of which an energy recovery ventilator air to air exchanger core  is a component, that assists in the recovery of energy (sensible and latent) from the exhaust air expelled by an HVAC system for the purpose of pre-conditioning the incoming outdoor air's latent and sensible components prior to supplying the conditioned air to a residential or commercial building, either directly or as part of an air-conditioning system.

 

1.03           “Field” shall mean Energy Recovery Ventilators for installation in industrial, commercial or residential buildings.

 

1.04           “Improvements” shall mean all inventions and developments relating to Product within the Field, whether patentable or not, the rights to which either Party creates, secures, controls, or acquires by assignment, license or otherwise, during the term of this Agreement which are based upon, relate to or derived from  any claim of any Patent listed on Schedule A

 

1.05           “Intellectual Property” shall mean those Intellectual Property Rights, Know-How, Trade Secrets, Patents and Trademarks useful in the manufacture and sale of Product within the Field and owned by LICENSOR.

 

1.06           “Intellectual Property Rights” shall mean all protectable intellectual property or proprietary rights, in whatever median, whether registered or unregistered, foreign or domestic, existing as of the date of this Agreement and relating to the Product in the Field, including, but not limited to (i) rights relating to the Product in the Field which are provided by a United States or foreign patent, trademark/service mark, copyright or a similar government-granted right, including reissues, reexaminations or extensions thereof, (ii) applications for the foregoing, including any divisions, continuations and continuations-in-part thereof, (iii) potentially patentable inventions with respect to the Product in the Field, (iv) all those Patents, and (v) all common law rights pertaining to the items listed in (i)-(iv) hereof.

 

1.07           “Know-How” shall mean, with respect to the Product in the Field, any and all: (i) design drawings, (ii) specifications and performance criteria, (iii) operating instructions and maintenance manuals, (iv) technology, technical and manufacturing information, including production documentation and methods layouts, (v) computer software and related documentation, (vi) prototypes, models, or samples, (vii) computer-aided design or computer aided manufacturing data, and (viii) other tangible materials necessary for the manufacture, sale, or testing of the Product in the Field and owned or controlled by LICENSOR at the commencement of this Agreement.

 

1.08           “Maintenance Fees” shall mean LICENSEE’s pro rata portion (relative to the other entities holding licenses on the Intellectual Property) of the costs and expenses incurred or paid (including the reasonable legal fees of LICENSOR) in connection with: (i) applying for, initiating, maintaining, obtaining and modifying any patents and patent applications, Trademarks and Trademark applications, copyrights and copyright applications including the filing of any application or any continuation in part, whether in the U.S. or internationally, or such other intellectual property protections deemed to be reasonably necessary or advisable by LICENSOR in connection with the Intellectual Property; (ii) prosecuting any claims related to the Intellectual Property and (iii) defending the Intellectual Property or other intellectual property against any claim or the exercise of any purported right with respect to the Product , including any claim of infringement by a third party.

 

  

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1.09           “Moisture Transfer Material” herein referred to as “MTM” means a thin film polymer membrane which is capable of reversibly adsorbing and desorbing water molecules and is composed in part or in whole of an organic layer of hydrocarbon ionomeric material, possibly bonded to a reinforcing substrate, and chemically stabilized for standard industrial thin film or precision lamination manufacturing.

 

1.10           “NanoAir” shall mean a device which is incorporated in a chiller installed in a commercial, industrial or residential building and employs MTM in concert with evaporative cooling and vapor compression to reduce the temperature of an open or closed water loop or a potable water supply connected to the chiller by transferring the heat of said water stream to a secondary stream, which allows the water stream to cool a second air stream supplied to air handling units in said building for the purpose of providing air conditioning, or alternatively the cooled water stream is used directly to reduce the temperature of a process load of said buildings.

 

1.11           “Net Sales Price” means the gross sales or lease price, as the case may be, of the Product sold or leased by LICENSEE, less the following items:

 

	
a.  

	
consumption tax, sales, excise and value added taxes;

	
b.  

	
custom duties;

	
c.  

	
cost of transportation and freight insurance without mark-up or added fees;

	
d.  

	
reasonable and customary trade, cash and quantity discounts;

	
e.  

	
amounts repaid or credited by reason of timely rejections or returns of goods

 

provided, however, that if  Product is transferred by LICENSEE to a third party or transferred, disposed of, sold or leased to any party of whom 25% or more of its shares are owned by LICENSEE then the Net Sales Price for the purpose of computing royalties hereunder shall be the higher of the sales price or lease amount received with regard to the transaction in question and the average Net Sales Price of such Product as then sold or leased by LICENSEE to unrelated customers in similar quantities and under similar terms.

 

1.12           “Patent” shall mean a patent mark, as defined by applicable law that is: (i) owned, controlled or used by LICENSOR; and (ii) the subject of a registration or a pending application for registration claiming inventions relating to Product in the Field and described on Schedule A.

 

1.13           “Product” shall mean an Energy Recovery Ventilator air to air exchanger core containing MTM (“Core”), MTM, NanoAir and/or Systems, and each falling within the Field and scope of any claim of any unexpired Patent.

 

1.14           “ ERV System” shall mean either an Energy Recovery Ventilator or a similar HVAC system of which an Energy Recovery Ventilator is a part provided in each instance a  Core is a component .

 

1.15           “Nano Air System” – an HVAC system, similar to water chillers currently produced within the field, of which Nano Air is a part.

 

  

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1.16            “System” shall mean either a Nano Air System or an ERV System.

 

1.17           “Term” shall mean the period commencing as of the date of this License and Supply Agreement and shall continue in perpetuity, unless and until sooner terminated in accordance with the terms of this Agreement or as otherwise provided by law.

 

1.18            “Territory” shall mean North America and South America.

 

1.19           “Trademark” shall mean a trademark, tradename or service mark, as defined by applicable law, that is: (i) owned, controlled or used by LICENSOR; and (ii) listed in Schedule A; and (ii) the subject of a registration or a pending application for registration or (iii) unregistered and is sufficiently identifiable by words or drawings together with a description of the goods or services with which it is used such that common law trademark rights may attach to it.

 

1.20           “Trade Secrets” shall mean all Know-How, data and other information developed or acquired without restriction by the LICENSOR as of the date of this Agreement that is useful in the manufacture, use, or sale of Products in the Field.

 

Article 2 - Grant of Rights

 

2.1              LICENSOR hereby grants to LICENSEE, upon the terms and conditions of this Agreement, to the extent that it lawfully may, the exclusive license and right for the term of this Agreement, to manufacture, sell, lease and distribute Product, and to use the Intellectual Property in connection therewith, in the Field and Territory subject to the terms and conditions of this Agreement (the “License”).  The foregoing right and license shall terminate upon termination of this Agreement, regardless of reason.  Other than as specifically provided in this Agreement, LICENSEE may not sublicense any rights granted herein without the prior written authorization of LICENSOR (which such authorization will not be unreasonably withheld, conditioned or delayed) and provided any such sub-licensee accepts in writing all of the terms and conditions of this Agreement; provided, however, the LICENSEE shall not sublicense the agreement to a competitor of the LICENSOR or a person or entity that has a non-compete agreement with the LICENSOR.

 

2.2              Upon the termination of this Agreement, regardless of reason, any and all sub-licenses granted hereunder shall terminate.

 

2.3              In the event LICENSEE fails to enforce the terms and conditions of any sublicense, LICENSOR may opt, upon fifteen (15) days prior written notice to the LICENSEE, to institute and prosecute an action in its name or in the name of the LICENSEE as may be desirable to protect the LICENSOR’s rights and interests.  LICENSEE shall join as a party to any such action if required by law or procedure.  In the event LICENSEE brings any action to enforce the terms and conditions of any sublicense, upon LICENSEE request and at LICENSEE’S expense, LICENSOR shall cooperate with such enforcement action.

 

  

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2.4             Notwithstanding the foregoing, no provision in this Agreement shall be deemed to constitute an assignment to LICENSEE of the Intellectual Property and all right, title and interest to the Intellectual Property shall remain vested in LICENSOR.

 

2.5             LICENSOR has entered into agreements pursuant to which third parties may purchase energy recovery ventilators and energy recovery ventilator cores and Systems from LICENSOR for sale in the Field and certain portions of the Territory (“Third Party Agreements”).  Notwithstanding any provision of this Agreement to the contrary, LICENSOR shall have the right to continue to meet the obligations of the Third Party Agreements until termination and thereafter to the extent required under said agreement including, but not limited to, any surviving warranty obligations.  LICENSOR has disclosed said Third Party Agreements to LICENSEE by letter correspondence dated as of October 26, 2012, and LICENSEE acknowledges said disclosure.    Except to the extent provided herein, LICENSOR shall not grant the same rights of LICENSEE as granted in this Agreement that are exercisable in the Field and Territory to any third parties and shall not knowingly supply Products to any third parties for use in the manufacture, sale or lease of Product in the Field and Territory.

 

2.6             LICENSEE will use all reasonable efforts to promote, market, sell and lease Products in the Field and Territory and with relation thereto shall comply with all applicable laws, rules and regulations of each country in the Territory including, but not limited to those laws, rules and regulations related to the manufacture, import, sale, distribution, promotion, marketing, handling, storage and shipment of Products.

 

2.7             LICENSEE shall not knowingly manufacture, use, sell, lease, transfer, or dispose of the Products  outside of the Territory.  LICENSEE will take all reasonable actions to prevent the use, manufacture, sale, lease, transfer or other disposal of the Products outside of the Field and Territory by third parties.

 

2.8             Except to the extent permitted by prior written consent of LICENSOR, which shall not be unreasonably withheld, conditioned or delayed, LICENSEE will not alter, modify, reverse engineer, decompile or change any Products, or the labeling or contents thereof and will make reasonable efforts to prevent its customers from doing so.  If LICENSEE becomes aware that any of its customers has altered, modified, reverse engineered, decompiled or changed any of the Products, LICENSEE shall promptly notify LICENSOR and, if LICENSOR so requests, LICENSEE shall cease selling Products to such customer.

 

Article 3 - Disclosure of Intellectual Property

 

3.1             At the request of LICENSEE, LICENSOR shall provide reasonable support, via telephone or electronic means, regarding the incorporation of Product related to Energy Recovery Ventilators in LICENSEE’S ERV Systems or the ERV Systems of LICENSEE’s customers in the Field and Territory.  Any additional support shall be upon terms and conditions to be agreed by the Parties. LICENSEE shall make reasonable efforts to produce a commercially viable NanoAir product making Improvements as necessary to achieve this goal.

 

 

  

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  Article 4 - COMPENSATION

 

4.1           With respect to the license granted under Article 2, LICENSEE shall pay LICENSOR a license payment of Two Million Dollars (US $2,000,000).  Said payment shall be made coincident with the execution of this Agreement in the form of retirement of the Two Million Dollar (US $2,000,000) Secured Promissory Note dated July 13, 2012, from LICENSOR to LICENSEE, as assignee of Michael Gostomski, including all interest accrued thereon.  This license fee is nonrefundable and noncreditable.

 

4.2           In addition to the payment under Section 4.1, LICENSEE shall pay LICENSOR a royalty on the Net Sales Price of each Product or System sold, leased, transferred or disposed of by or for LICENSEE pursuant to and during the Term of this Agreement (“Royalty Payment”).  The Royalty Payment for each such Product shall be the percentage of the Net Sales Price of the Product set forth in Schedule B unless Product is incorporated in or sold, leased or otherwise disposed of in conjunction with a System, in which case the Royalty Payment to be paid to the LICENSOR for each Product in the System shall be the percentage of the Net Sales Price of said System set forth in Schedule B. The Royalty Payment for any System of which NanoAir is a part shall be computed using the percentage of Net Sales Price designated for NanoAir Systems on Schedule B. Royalty Payments shall be due and payable thirty (30) days following the end of each month during the term of this Agreement.  The Net Sales Price of all Products and Systems invoiced, shipped transferred or disposed of by or for LICENSEE during each month shall be included in the calculation of Royalty Payments due for that month. However, with respect to  Products invoiced or shipped the Royalty Payment shall be paid on the earlier of  the month in which LICENSEE receives payment for such Products or ninety (90) days following the month in which the Product was invoiced or shipped.

 

4.3           All payments by LICENSEE under this Agreement shall be made at the address first written above or at such other address as the LICENSOR may specify by prior written notice.  Payments shall be made in U.S. dollars.  With respect to any transaction conducted outside of the United States, the Royalty Payment due thereon shall be calculated using the exchange rate published in the Wall Street Journal (“Journal”) on the date the Product or System is sold, leased or transferred.  If any such transaction takes place on a day on which the Journal is not published, the exchange rate shall be the rate contained in the first publication of the Journal following the transaction date.

 

4.4           In addition to any remedies available to LICENSOR in law or equity, should LICENSEE fail to remit to LICENSOR any amounts payable under this Agreement within the applicable grace period of the date when due, LICENSOR shall have the right to apply a late charge of 1.5% per month on the unpaid balance.

 

4.5           With each Royalty Payment, LICENSEE shall provide LICENSOR a written report which shall include the period for which the report is made, the LICENSEE identification number for and a description of each Product or System sold, leased, disposed of or transferred by or for LICENSEE during the month of the report, the address of the installation site  (if known), the LICENSOR production identification number relating to Products contained in the report, the total dollar amount of the Products and Systems sold, leased or otherwise disposed of by LICENSEE during said month, the calculation of the Royalty Payment, the total amount of the Royalty Payment for the month, and such other information as LICENSOR may reasonably request to confirm the Royalty Payment.  A report stating there has been no fee-bearing activity shall be provided to LICENSOR by LICENSEE for any royalty period in which no royalty bearing activity has occurred.

 

  

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4.6           LICENSEE agrees to keep true and accurate records, files and books of accounting relating to the Products and Systems sold, leased, transferred or otherwise disposed of and in sufficient detail so as to confirm the accuracy of all Royalty Payments due hereunder.  LICENSOR shall have the right to cause an independent, certified public accountant, to which LICENSEE has no reasonable objection, to audit such records and confirm LICENSEE’s transactions relating to the Products and Systems in the Field and Territory.  Such audit rights may be exercised no more often than once a year, within two (2) years after receipt by LICESNOR of the Royalty Payment to which such records relate, upon reasonable notice to LICENSEE and during normal working hours.  LICENSOR will bear the full cost of such audit unless such audit discloses an underpayment of five percent (5%) or more from the Royalty Payment due to LICENSOR for the period audited.  In such case, LICENSEE shall bear the full cost of the audit and shall pay such amounts due LICENSOR within sixty (60) days after the conclusion of the audit.  In the event such audit discloses an overpayment by LICENSEE to LICENSOR, LICENSOR shall pay such overpayment to LICENSEE within sixty (60) days after the conclusion of the audit, or at LICENSEE’s request credit such overpayment against Royalty Payments next due and owing until such overpayment amount is exhausted.  The terms of this Section shall survive any termination or expiration of the Agreement for a period of two (2) years.  The Parties agree that the failure to file or pay a Royalty Payment in full as required hereunder shall be considered a material default.

 

Article 5 - Agreement to Supply

 

5.1           During the Term, except as provided herein at Section 5.3, LICENSEE agrees to purchase, exclusively from LICENSOR, LICENSEE’s (and any sub-licensee’s) requirement of Products for use in the Field and Territory.  LICENSEE shall pay LICENSOR the price for each Product purchased as agreed between LICENSOR and LICENSEE (“Purchase Price”), and as set forth in that certain correspondence dated of even date herewith, as such Purchase Price may be adjusted, supplemented or amended from time to time in accordance with this Agreement.  The Purchase Price shall be subject to adjustment by LICENSOR for any increase LICENSOR incurs in producing the Product plus [***] percent of said increase.  Any such increase shall not take effect until the next Contract Quarter following notice to LICENSEE of said adjustment.  LICENSEE shall have the right to request reasonable documentation of any such increase and shall have the right to terminate the Agreement in the event LICENSOR incurs cost increases in a given year of the Agreement which exceed [***] percent of the highest purchase price paid by LICENSEE for the Product in the previous year of the Agreement.  Any such termination by LICENSEE shall be made within thirty (30) days of receiving notice of a cost increase from LICENSOR or said right is waived.  For the purpose of this Agreement “Contract Quarters” shall be defined as January 1 to March 31, April 1 to June 30, July 1 to September 30 and October 1 to December 31 for each year of the term, unless otherwise agreed in writing by the Parties

 

  

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5.2   Not less than thirty (30) days prior to the commencement of each Contract Quarter, LICENSEE shall provide a forecast for the Products it will purchase from LICENSOR under this Agreement during the next two Contract Quarters, including quantities for each Product and requested delivery schedules for each Product and for each Contract Quarter (each a “Rolling Quarterly Forecast”).  Each Rolling Quarterly Forecast shall evidence a binding obligation of LICENSOR to supply the Product and for LICENSEE to purchase the Product set forth on such Rolling Quarterly Forecast.  Subject to the foregoing, each time the Quarterly Rolling Forecast is updated, LICENSEE may increase the quantities forecast for the Contract Quarter immediately preceding the current Contract Quarter by up to five percent (5%) and may decrease the quantities forecasted for that same Contract Quarter by no more than five percent (5%).  Further adjustments to said Contract Quarter purchases may be made upon the written agreement of the Parties provided, LICENSOR shall not deny a request by LICENSEE for an increase in the quantity of Products forecasted for said Contract Quarter if, after taking into account any other orders or commitments LICENSOR may have for its products in that period, it possesses sufficient materials and labor to supply the LICENSEE’S request for additional Products pursuant to the delivery schedule proposed.  For a Contract Quarter that has not been previously forecast, LICENSEE may set the forecast, at any level mutually acceptable by the Parties.  Notwithstanding the five percent (5%) threshold, subject to LICENSOR capacities related to productions runs, in the event the Parties are not able to agree upon the quantity of Product to be purchased by LICENSEE in a new Contract Quarter, LICENSEE shall have the right to increase its purchase by up to twenty percent (20%) of the quantity of each Product requested in the last Contract Quarter forecasted.  The quantities of each Product and delivery dates set forth in each Rolling Quarterly Forecast shall be evenly spread over each such quarter unless otherwise agreed in writing by the Parties.  The Products shall be purchased and paid for by LICENSEE pursuant to the terms and conditions of this Agreement.  No term or condition set forth in any purchase order or sales acknowledgment will have any effect other than the identification of Products ordered, quantity of each Product, delivery dates (subject to the provisions herein) and other general non-contractual invoice information.  All other terms and conditions contained in any such purchase orders or sales acknowledgments shall be deemed null and void.  The terms set forth in this Agreement shall apply to all purchase orders placed by LICENSEE and accepted by LICENSOR.

 

5.3   In the event:

 

(a) LICENSOR is unable to manufacture LICENSEE’s requirement of Product pursuant to the Rolling Quarterly Forecast and such inability continues for a period of thirty (30) days following written notice from LICENSOR to LICENSEE of such inability, or

 

(b) LICENSEE elects upon one hundred and twenty  (120) days prior written notice to LICENSOR to manufacture all or a portion of LICENSEE’s requirement of Product,

 

LICENSEE shall be permitted to employ the license granted under Article 2 to manufacture the amounts and types of Product required under the Rolling Quarterly Forecast pursuant to the terms of this Section.  In addition, in such a circumstance, LICENSEE may sublicense the right to manufacture said Products subject to the terms and conditions of this Agreement, as necessary to a contract manufacturer designated by LICENSEE and approved by LICENSOR, with said approval not to be unreasonably withheld, conditioned or delayed.  Prior to granting any such sublicense, LICENSEE will secure from said contract manufacturer a confidentiality agreement containing terms and conditions reasonably acceptable to LICENSOR but in no event less restrictive than the terms contained herein.  Notwithstanding any other provision of this Agreement to the contrary, LICENSEE will, at its expense, adhere to and enforce said confidentiality agreement and shall indemnify and hold harmless LICENSOR from and against any and all claims, losses, expenses, including without limitation reasonable attorneys’ fees, damage, causes of action and liabilities of every kind and nature asserted by any party or incurred by LICENSOR which result from or arise out of any license granted or used pursuant to the terms of this Section.  Any sub-license granted under this Section shall be revocable and specifically limited to producing Product for LICENSEE pursuant to the terms and conditions of this Agreement.  Any sublicense permitted hereunder shall not be sub-licensable or assignable.  LICENSEE shall not be required to pay LICENSOR the Purchase Price for Product produced by LICENSEE or its contract manufacturer pursuant to this Section, but shall pay LICENSOR the Royalty Payment set forth in Section 4 for each such Product or System.  Notwithstanding anything to the contrary contained in this Agreement, LICENSEE agrees that LICENSEE will not produce, purchase, procure or manufacture MTM.

 

  

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5.4   LICENSOR (directly or through its subcontractor, if any) shall test each Product and provide a report confirming that it meets the specification (“Specifications”) as disclosed to LICENSEE under separate letter dated of even date herewith, as may be updated and supplemented from time to time in accordance with this Agreement (“Specifications Disclosure”). LICENSEE reserves the right to test Product from each production run, employing the procedure outlined in the Specifications Disclosure (Product Acceptance Test Criteria), within fifteen calendar (15) days of receipt of each Product order.  Product not meeting the Specification, if not damaged in shipping or by improper handling, may be rejected by LICENSEE as non-conforming upon notice made to LICENSOR within the aforementioned period.  Failure to provide said notice in accordance with this provision shall bar any claims by LICENSEE with respect to the Products delivered.

 

5.5   LICENSOR will use commercially reasonable efforts to supply LICENSEE replacement Products within thirty (30) days following receipt of a notice of rejection issued in compliance with the terms of Section 5.4.  LICENSEE shall, with said notice provide LICENSOR with any Products believed to be non-conforming and all reasonable information LICENSOR may request with regard to such Products.  If LICENSOR agrees the Products do not meet Specifications, the Products LICENSOR provides as a replacement hereunder shall be provided without charge. LICENSOR shall have the right, at its expense, to inspect any Products LICENSEE deems non-conforming.  If LICENSOR disagrees with LICENSEE’s determination or determines that the Products were damaged in shipping or handling and the Parties are unable to resolve the issue then such Products shall be submitted to a mutually acceptable third party test facility.  Said test facility shall determine whether the Products in question meet the Specifications and, if so, if the failure was due to damage inflicted in shipping or handling.  The Parties agree that such test facility’s determination shall be final and determinative.  If such test facility determines that the Product in question did meet Specifications, LICENSEE shall accept the Product and shall pay for each Product as well as any replacement Products shipped by LICENSOR as a result of a rejection notice.  The foregoing shall be LICENSEE’s sole remedy for non-conforming Product. LICENSEE shall not return any Products, at any time unless (i) such Products are non-conforming, as determined by the provisions of this Section and (ii) upon prior written approval of LICENSOR.

 

  

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5.6           Unless agreed otherwise in writing, all Products purchased by LICENSEE hereunder shall be delivered to LICENSEE, at LICENSOR’s option, F.O.B. place of manufacture or F.O.B. LICENSOR’s Florida facility.  LICENSEE shall be responsible for all shipping costs, taxes (other than LICENSOR United States corporate income tax), import and export charges and all duties of any nature associated with each such purchase.  Risk of loss shall be borne by LICENSEE upon delivery of Product pursuant to the terms of this Section.  Requests for adjustments on shipping errors (including concealed shortages/overages) must be reported within ten (10) days after receipt of the shipment.  The delivering carrier shall be responsible for damage in shipment.  LICENSEE will provide suitable storage facilities for the Product and follow all reasonable storage and handling precautions, including but not limited to any reasonable instructions provided by LICENSOR.  LICENSOR will invoice LICENSEE for all Products it purchases.  Said invoices shall be paid net thirty (30) days with said period commencing five (5) days following the date LICENSOR notifies LICENSEE that the Product is available for shipment.

 

5.7           Notwithstanding any provision of this Agreement to the contrary, any liability of LICENSOR, regardless of nature, with respect to the Products, shall not exceed the invoice price of the Products to which the claim relates.

 

Article 6 – LICENSOR Representations and Warranties

 

6.1           LICENSOR is a corporation organized under the laws of the State of New York and has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  The execution and performance of this Agreement by LICENSOR has been authorized by all necessary action on the part of LICENSOR.  The execution of this Agreement by LICENSOR will not (i) conflict with or violate any provision of the organizational documents or by-laws of LICENSOR, (ii) require any filing with, or any authorization or consent of any governmental entity, (iii) conflict with or violate any court or governmental order, or (iv) violate or breach the terms of any oral or written agreement of LICENSOR with any third party.

 

6.2           LICENSOR represents and warrants that title to the Products delivered to LICENSEE by LICENSOR under this Agreement will be free and clear of all liens, encumbrances, and security interests or other like claims.

 

6.3           LICENSOR represents and warrants to LICENSEE that the Product manufactured and sold by LICENSOR to LICENSEE under this Agreement conforms to the Specifications.

 

6.4           LICENSOR represents and warrants that the Products and the use of Products in  Systems in the Territory does not, to its knowledge, infringe the personal, contractual, proprietary, or intellectual property rights of any third party.

 

6.5           LICENSOR represents and warrants it has the authority to grant the rights set forth in this Agreement to LICENSEE.

 

6.6           Subject to the terms and conditions of this Agreement, LICENSOR represents and warrants that it will use reasonable efforts to maintain and prosecute any Patents during the Term.

 

  

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6.7           LICENSOR DOES NOT ASSUME ANY LIABILITY, EITHER TECHNICAL OR ECONOMICAL OR OTHERWISE, FOR THE PERFORMANCE, SAFETY, QUALITY OR ANY OTHER ASPECT OF ANY PRODUCT MANUFACTURED BY IT OR ITS CONTRACTORS OR ANY SYSTEM AND, EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE 6, LICENSOR SPECIFICALLY DISCLAIMS AND EXCLUDES ALL WARRANTIES REPRESENTATION AND/OR GUARANTEES (EXPRESS, IMPLIED OR STATUTORY) REGARDLESS OF NATURE, ARISING BY OPERATION OF LAW OR OTEHRWISE,INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

6.8           The Third Party Agreements disclosed to LICENSEE in the correspondence dated as of October 26, 2012 are all Third Party Agreements within the Territory, accurately disclosure the pricing, duration and term for each Third Party Agreement, and such Third Party Agreements are in full force and effect, without default unless otherwise disclosed.

 

ARTICLE 7- LICENSEE Representations and Warranties

 

7.1           LICENSEE represents and warrants that it is a corporation organized under the laws of Delaware and has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  The execution and performance of this Agreement by LICENSEE has been authorized by all necessary action on the part of LICENSEE.  The execution of this Agreement by LICENSEE will not (i) conflict with or violate any provision of the organizational documents or by-laws of LICENSEE, (ii) require any filing with, or any authorization or consent of any governmental entity, (iii) conflict with or violate any court or governmental order, or (iv) violate or breach the terms of any oral or written agreement of LICENSEE with any third party.

 

7.2           LICENSEE represents and warrants to LICENSOR that LICENSEE’s manufacture and sale of its Systems does not and will not, to the best of its knowledge, infringe the personal, contractual, proprietary, or intellectual property rights of any third party.

 

7.3           LICENSEE represents and warrants to LICENSOR that LICENSEE’s Product, when manufactured by or for it pursuant to the terms and conditions hereof, and Systems are free of material defects in design, materials and workmanship, including, without limitation, such defects as may create or pose a hazard or danger to life, health or property

 

7.4           LICENSEE represents and warrants to LICENSOR that LICENSEE will use commercially reasonable efforts to promote and market the sale, lease and use of the Products and Systems in the Field and in each country of the Territory.

 

Article 8 – Rights and Improvements

 

8.1           The parties agree that any Improvements to the Intellectual Property made or carried out by: (i) Licensee, or its employees, officers, affiliates or agents; or (ii) Licensor, or its employees, officers, affiliates or agents, shall be promptly disclosed to the other Party, in confidence and in such detail as is reasonably required to permit the Party to use such Improvement.  Licensor shall own and hold all right, title and interest to all such Improvements, except that Licensee shall have the right of use of such Improvements during the term of this Agreement pursuant to the license granted in Article 2.

 

  

11

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

8.2           During the term of this Agreement, LICENSEE agrees to identify and mark all products produced by LICENSEE with such indications of the Patents and/or Trademarks as Licensor may reasonably direct or approve in writing to protect the Intellectual Property.

 

8.3           Notwithstanding any provision of this Agreement to the contrary, LICENSOR shall own any intellectual property of any nature including but not limited to all Confidential Information and/or know-how and any amendments, modifications or improvements thereto, regardless of nature, created or developed, during the term of this Agreement, by or for LICENSOR, by or for LICENSEE or by or for LICENSEE in concert with any other party, including LICENSOR, which is related directly or indirectly to Product and its uses (including but not limited to any intellectual property and /or know-how relating to the synthesis, resins, or fabrication of MTM) (“Rights”).  LICENSEE shall promptly inform the Licensor in writing of any such Rights and shall provide reasonable guidance with respect to instructing the LICENSOR as to use thereof.

 

8.4           LICENSEE shall assign ownership of any such Rights or Improvements to the LICENSOR and shall take all reasonable actions to assist the LICENSOR, at the LICENSOR’s expense with respect to the Rights, in securing and enforcing any patents the Licensor may seek relating thereto.

 

8.5           LICENSEE shall pay all Maintenance Fees within 30 days of receipt of an invoice from LICENSOR.  Said invoice shall include reasonable support of the charges.

 

8.5           Each Party shall promptly inform the other of any suspected infringement of any claims of the Patents, or any misuse, misappropriation, theft or breach of confidence of the Intellectual Property in the Field and Territory by a third party, and with respect to such activities as are suspected, LICENSOR shall have the right but not the obligation, to institute an action for infringement, misuse, misappropriation, theft or breach of confidence of the Intellectual Property against such third party.  If Licensor fails to bring such an action or proceeding within a period of sixty (60) days after receiving notice thereof, then LICENSEE shall have the right to prosecute at its own expense any such claim.  Should either LICENSOR or LICENSEE commence suit under the provisions of this section and thereafter elect to abandon the same, it shall give timely notice to the other Party who may, if it so desires, continue the prosecution of such action or proceeding at its own expenses.  Any damages recovered from such action will be divided between the Parties in proportion to the percentage of such costs which they have paid.  Neither LICENSOR nor LICENSEE shall settle any action covered by this section without first obtaining the consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed.

 

  

12

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

Article 9 – Confidentiality

 

9.1           Each Party acknowledges that, pursuant to this Agreement and during the term hereof, the party and its employees and agents, as a direct or indirect consequence of or through this Agreement, will come into possession of information that is not in the public domain and that is proprietary to the other party (“Confidential Information”). With respect to the LICENSOR, Confidential Information shall include, without limitation, its Intellectual Property.  Each Party further agrees, in perpetuity (except as reduced by a court of competent jurisdiction), to keep confidential all of the other Party’s Confidential Information and all information relating thereto disclosed to it pursuant to this Agreement and to use the same during the term of this Agreement only for the purposes set forth in and as permitted herein, and to make no use of, or disclose whatsoever of, the same following termination of this Agreement.  No Party shall deviate from the foregoing restriction unless it secures prior written approval from the other Party for such deviation; provided, however, that the Parties shall be entitled to communicate Confidential Information received under this Agreement to any subcontractor manufacturing the Product, as permitted by the terms of the Agreement, but only to the extent such information is necessary for the subcontractor to perform its services and the information is provided only after the subcontractor is bound in writing to confidentiality provisions at least as restrictive as those contained herein.  Each Party shall limit the internal disclosure of Confidential Information received from a disclosing Party to those officers, directors and employees who have a need to know and an obligation to protect it in accordance with the terms of this Agreement.

 

9.2   Notwithstanding the foregoing, no liability shall arise hereunder for use or disclosure of the other Party’s Confidential Information provided:

 

	
a.  

	
Such Confidential Information is generally available to the public through no fault of receiving Party, and without breach of this Agreement; or

 

	
b.  

	
Such Confidential Information is already possessed by the receiving Party, without restriction, prior to the disclosure hereunder as evidenced by appropriate written documentation; or

 

	
c.  

	
Such Confidential Information is or has been lawfully disclosed to the receiving Party by a third party without an obligation of confidentiality upon the receiving Party.

 

9.3           A receiving Party shall only make such copies of the disclosing Party’s Confidential Information, as are necessary to achieve the purpose of this Agreement.  All Confidential Information furnished by one Party to the other Party shall remain the property of the disclosing Party.

 

9.4           In the absence of a protective order, if a Party is, in the reasonable opinion of its counsel, required to disclose the other Party’s Confidential Information pursuant to a court order or be exposed to liability for contempt or other sanctions, such Confidential Information may be disclosed to the court to the extent required under the order.

 

Article 10 - Term and Termination

 

10.1         Unless earlier terminated in accordance with the terms of this Agreement, this Agreement shall terminate upon the last to expire of the Patent Rights.

 

  

13

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

10.2           In addition to any other right of termination contained herein, either Party may terminate this Agreement and all purchase orders issued hereunder immediately (i) upon sixty (60) days prior written notice to the other Party of a material breach, provided the breach is not cured within such sixty (60) day period or the other Party has not taken reasonable steps during such sixty (60) day period to cure the breach as promptly as possible; or (ii) upon the provision of written notice to the other party as of the date on which: (a) the other Party commences any proceedings under any law of any jurisdiction relating to bankruptcy, insolvency, reorganization, liquidation, moratorium, relief of debtors, or seeking appointment of a receiver, trustee, custodian, or other similar official for it, or for all of its assets, or makes general assignment for the benefit of its creditors; or (b) there is commenced against the other Party any proceeding of a nature referred to in subsection (a) above which remains undismissed for a period of thirty (30) days; or (c) there is commenced against the other Party an action seeking issuance of a warrant of attachment, execution, or other similar process against its assets; or (d) the other Party is generally not able to, or admits in writing its inability to, pay its debts as they become due.

 

10.3           Further, in addition to any other right of termination herein, LICENSOR may terminate this Agreement and any purchase orders related thereto upon thirty (30) days prior written notice to LICENSEE for any failure by LICENSEE to make any payment required under this Agreement, including but not limited to payments required under Article 4 or Article 5, in accordance with the terms and conditions of this Agreement, provided the required payment(s) is not made within said thirty (30) day period.

 

10.4           This Agreement may be terminated at any time upon the mutual written agreement of the parties.

 

10.5.          This Agreement may be terminated by the LICENSOR upon the sale or transfer of 50% or more the equity interests of the LICENSEE to a competitor of the LICENSOR or a person or entity that has a non-compete agreement with the LICENSOR

 

10.6           Notwithstanding any provision of this Agreement to the contrary, any termination of this Agreement shall be without prejudice as to any right of either party hereto with respect to any obligation of the other party accrued on or prior to the effective date of such termination.

 

Article 11 - Invalid Provisions

 

11.01         If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws in any applicable jurisdiction, such unenforceability or invalidity shall not affect the other provisions of this Agreement and the unenforceable or invalid provision shall be construed to be amended in order to avoid such unenforceability or invalidity while giving maximum permissible effect to the Parties intentions expressed herein.  Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Article 12 – Remedies and Implied Waiver

 

12.1           Waiver by any Party of any breach of or exercise of any rights under this Agreement shall not be deemed to be a waiver of similar or other breaches or rights or a future breach of the same duty.  The failure of any Party to take any action by reason of any such breach or to exercise any such right shall not deprive any Party of the right to take action at any item while such breach or condition giving rise to such right continues.

 

  

14

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

12.2           Unless otherwise stated in this Agreement, no remedy herein is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise.

 

Article 13 – Notices

 

13.1           Any notices, required to be given hereunder shall be in writing and shall be (a) delivered in person, (b) mailed, postage prepaid, either by registered or certified mail, return receipt requested, or (c) sent by guaranteed overnight delivery through a nationally recognized express carrier, addressed in each case as follows:

 

	
To LICENSEE:

	
MG Energy LLC

1666 Valley View

Winona, Minnesota  55987

Attention:  Michael Gostomski

	  	  
	
With a copy to:

	
Harrison & Held, LLP

333 West Wacker Drive

Suite 1700

Chicago, Illinois  60606

Attention:  Robert T. Napier, Esq.

	  	  
	
To LICENSOR:

	
Dais Analytic Corporation

11552 Prosperous Drive

Odessa, Florida, 33556

Attention:  Tim Tangredi

	
With a copy to :

	
Sichenzia Ross Friedman Ference LLP

61 Broadway

New York, New York 10006

Attention: Peter DiChiara

 

or to any other address as to any of the parties hereto shall designate by notice as herein given. The notice given, as aforesaid, shall be deemed to be received by the Party to whom it is addressed: (i) if personally delivered, then on the date of delivery, (ii) if sent by guaranteed overnight delivery by such express carrier, then on the next federal banking day immediately following the day sent, or (iii) if sent by registered or certified mail, then on the earlier of the fifth federal banking day following the day sent or when actually received.

 

Article 14 – Law and Forum

 

14.1           This Agreement and the rights hereunder shall be governed by and construed in accordance with the laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of New York (“Governing Law”).

 

  

15

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

Article 15 - Assignment

 

15.01         Except as expressly set forth to the contrary herein, neither Party shall have the right to transfer or assign any of its rights or obligations under this Agreement to any third party without the prior written consent of the other Party, which shall not be unreasonably withheld, conditioned or delayed.  Notwithstanding the foregoing, this Agreement may be assigned by LICENSOR to any successor to its business, whether by acquisition of all or substantially all of its assets, acquisition of equity, merger, consolidation or otherwise.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.

 

Article 16 - Entire Agreement; Amendments; Headings; Counterparts

 

16.1           This Agreement sets forth the entire agreement and understanding between the Parties with respect to the matter hereto and supersedes all previous communications, whether written or oral. This Agreement may be amended, modified or supplemented but only pursuant to a writing signed by both of the Parties to this Agreement.

 

16.2           The captions to sections of this Agreement have been inserted solely for convenience and reference, and shall not control or affect the meaning or construction of any of the provisions of this Agreement.  Wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and plural, and pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine and neuter

 

16.3           This Agreement may be executed in any number of counterparts and by facsimile transmission.

 

Article 17 - Indemnification

 

17.1           LICENSEE shall indemnify, defend and hold LICENSOR its affiliates and their respective directors, officers, employees, agents and advisors harmless from and against any and all claims, demands, actions, causes of action, judgments, losses, liabilities, costs and expenses, including but not limited to reasonable attorneys’ fees and other litigation expenses (collectively, “Losses”), arising from or related to (i) any bodily injury, wrongful death or damages suffered by third parties arising out of the Products or Systems; provided said Losses do not directly and solely arise from the failure of the Product provided by or on behalf of LICENSOR to LICENSEE under this Agreement to meet Specifications at delivery,(ii) LICENSEE’s and/or any of its contractor’s or sublicenee’s breach of any of the covenants or representations contained herein, and (iii) any statement, representation or warranty made by LICENSEE, any of its sublicensee, contractors or any of their respective employees or agents with respect to Products or System or its use that is not consistent with the statements or representations contained herein.

 

17.2           With respect to the indemnity and hold harmless provisions of Section 17.1, LICENSEE agrees to defend LICENSOR (at LICENSOR’s request and option, with attorneys mutually agreed upon) in any suit or action brought or threatened against LICENSOR based on the foregoing provision including but not limited to any suit or action based on any such injury, damage or alleged injury or damage and to pay all reasonable costs, expenses and reasonable attorney fees.  The Parties shall negotiate in good faith concerning the direction of the defense and any compromise or settlement of any action or claims against LICENSOR.

 

  

16

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

17.3           LICENSOR shall indemnify, defend and hold harmless LICENSEE from and against any and all Losses arising from or related to (i) any bodily injury, wrongful death or damages suffered by third parties which are the direct result of the failure of the Product, if manufactured by or for LICENSOR and provided to LICENSEE by LICENSOR under this Agreement, to meet the Specification at delivery, or (ii) any breach by LICENSOR of any of its covenants or representations set forth herein.

 

17.4           With respect to the indemnity and hold harmless provision of Section 17.3 LICENSOR agrees to defend LICENSEE (at LICENSEE’s request and, at LICENSEE’s option, with attorneys mutually agreed upon) any suit or action brought or threatened against LICENSEE based on said provisions including but not limited to any suit or action based on any such injury, damage or alleged injury or damage, and to pay all reasonable costs, expenses and reasonable attorney fees.  The Parties shall negotiate in good faith concerning the direction of the defense and any compromise or settlement of any action or claims against LICENSEE.

 

17.5           Notwithstanding the foregoing, the Parties agree that any amounts to be paid by LICENSOR under Article 17 shall not in any event exceed, in the aggregate, Two Million Dollars (USD $2,000,000).

 

Article 18- Survival

 

18.1           The royalty payment and record keeping provisions of Article 4, the payment obligations of Article 5, the assignment and patent obligations of Article 8, and Articles 9 and 17 in their entirety shall survive the expiration or termination of this Agreement (and any extensions thereof) as shall any other provision which specifically states it shall survive termination or expiration.

 

Article 19 - No Partnership or Joint Venture

 

19.1           Nothing in this Agreement shall be deemed to constitute, create, give effect to or otherwise recognize a joint venture, partnership, or formal business entity of any kind between the parties and the rights and obligations of the Parties shall be limited to those expressly set forth herein.  Nothing contained 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 20- Force Majeure

 

20.1           Except with respect to any payment provisions herein, neither Party will be held responsible for any delay or failure in performance of this Agreement caused directly or indirectly by the following events beyond the reasonable control of that Party: acts of God, natural disaster (e.g., earthquakes, hurricanes, tornadoes, storms, or floods),fires, explosions, wars, civil disturbances, military conflicts, terrorism, terrorist acts, insurrections, riots, material shortages, governmental acts or acts required by the government, accidents or labor conflicts.

 

  

17

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

Article 21- Disclaimer of Consequential Damages

 

21.1           Neither Party is liable to the other Party for any indirect, punitive, special, exemplary, incidental and/or consequential damages (for example, lost profits) arising in tort, contract strict liability or any other legal theory, from the execution or performance of this Agreement or any license granted hereunder .  Further, notwithstanding any provision of this Agreement to the contrary, in no event shall LICENSOR be liable for any claims of LICENSEE’s customers or other third parties for any such damages.

 

ARTICLE 22- Laws and Export Control

 

22.1           This Agreement is made subject to any restrictions concerning the export of products or technical information from the United States of America to other countries which may be imposed upon or related to LICENSEE or LICENSOR from time to time.  Each Party agrees that it will not export, directly or indirectly, any technical information to a location or in a manner that at the time of the export requires an export license or other governmental approval, without first obtaining the written consent to do so from the appropriate agency or other governmental entity.  Further, each Party shall comply with all applicable foreign, federal, state and local laws, regulations and ordinances.

 

ARTICLE 23- Specific Performance and Injunctive relief

 

23.1           Each Party acknowledges and agrees that any breach by it of any of the covenants or agreements set forth in Article 2 and Article 9 hereof is likely to, and can be expected to, result in irreparable harm and injury, directly and indirectly, to other Party, and each Party therefore consents and agrees that, if it shall violate any of such covenants or agreements, the other Party shall be entitled, among and in addition to any other rights or remedies available at law or otherwise, to temporary and permanent injunctive relief (without the necessity of posting bond) to prevent the breaching Party from committing or continuing such violation or breach and to enforce specifically the provisions thereof in any judicial action or proceeding instituted in accordance with this Agreement.  The other Party will not claim as a defense to such petition for injunctive relief that there is an adequate remedy at law.

 

ARTICLE 24- Publicity

 

24.1           Neither Party shall publicly disclose the terms of this Agreement, except as required by law or governmental regulations (including but not limited to SEC regulations), without the prior written consent of the other Party which shall not be unreasonably withheld.

 

Article 25- Further Assurances

 

25.1           The parties hereto agree to execute and deliver such instruments and to take such other action as shall be reasonably necessary, or as shall be reasonably requested by the other party hereto, in order to carry out the transactions, agreements and covenants contemplated in this Agreement.

 

  

18

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in duplicate original counterparts by their duly authorized officers or representatives as of the day and year first above written.

 

	 	MG Energy LLC 

By: /s/ Michael Gostomski               

Name:  Michael Gostomski

Title:  Manager

Dais Analytic Corporation

By: /s/ Timothy N. Tangredi              

Name: Timothy N. Tangredi

Title: President & CEO

 

  

19

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

SCHEDULES TO LICENSE AND SUPPLY AGREEMENT

BY AND BETWEEN

MG ENERGY LLC AND DAIS ANALYTIC CORPORATION

DATED OCTOBER 26, 2012

Schedule A

 

Patents

 

	 	1.	U.S. Patent No. 6,841,601– Cross-linked polymer electrolyte membranes for heat and moisture exchange devices. This patent was issued on January 11, 2005.
	 	 	 
	
  

	
2.

	
U.S. Patent No. 6,413,298 – Water and ion-conducting membranes and uses thereof. This patent was issued on July 2, 2002.

	  	  	  
	
  

	
3.

	
U.S. Patent No. 6,110,616 – Ion-conducting membrane for fuel cell. This patent was issued on August 29, 2000.

 

	  	
4.

	
U.S. Patent No. 5,679,482 – Fuel Cell incorporating novel ion-conducting membrane. This patent was issued on October 21, 1997.

 

	  	
5.

	
U.S. Patent No. 5,468,574 – Fuel Cell incorporating novel ion-conducting membrane. This patent was issued on October 21, 1995.

 

	  	
6.

 

7.

	
U.S. Patent No. 7,179,860 – Cross-linked polymer electrolyte membranes for heat, ion and moisture exchange devices. This patent was issued on February 20, 2007.

 

U.S. Patent 8,222,346 B2 - Novel Coblock Polymers and Method for Making Same. This patent was issued July 17, 2012.

 

Patent Applications

 

	  	
1.

	
U.S. Patent Application #13/521,105- Anionic Exchange Electrolyte Polymer Membranes

	  	
 

2.

	
 

U. S. Patent Application # 12/442,582- Enhanced HVAC System and Methods

	  	  	  
	  	
3.

	
Patent Application  U.S. – #12/599,200 - Molecule Sulphonation Process*

 

	  	
4.

	
Patent Application U.S.– #12/664,762 - Stable and Compatible Polymer Blends*

 

*Co-owned with Aegis Biosciences, LLC

 

  

20

  

 

[***] Designates portions of this document that have been omitted pursuant to a request for confidential treatment filed separately with the Commission.

 

Schedule B

Royalty

For the purpose of calculating the Royalty Payment due and payable by LICENSEE to LICENSOR pursuant to Section 4 of the Agreement the following  percentages  of Net Sales Price shall apply as indicated: :

 

1. [***]% of the Net Sales Price of each ERV System

 

2. [***]% Net Sales Price of each Core

 

3. $[***] per square ft of MTM with a minimum annual Royalty due and payable  to LICENSOR on each anniversary of the Agreement as follows:

 

a. 2013           $[***]

b. 2014           $[***]

c. 2015           $[***]

d. 2016           $[***]

e. 2017           $[***]

f.  2018 and each year thereafter $[***]

 

4. [***]% of Net Sales Price of Systems using NanoAir technology .

 

5. [***]% of Net Sales Price of SLATS using the NanoAir technology MTM technology, such technology is similar to the function of the Core technology to the ConsERV ERV

 

In the event more than one Product is incorporated in single device or system, the LICENSEE shall not pay a Royalty on each Product included in such device or system but will instead pay only the highest dollar Royalty applicable  to the Product in question.

 

 

 

 21GOOGLE
SEARCH AND ADVERTISING SERVICES AGREEMENT

 

This
Google Search and Advertising Services Agreement (“GSA”) is entered into by Google Ireland Limited,
whose principal place of business is at Gordon House, Barrow Street, Dublin 4 (“Google”) and Babylon Ltd
whose registered office is at 10 Hatasi, Or Yehuda, 60212 Israel (“Company”)
and is effective from 1st January 2011 (“GSA Effective Date”).

 

INTRODUCTION

 

		(A)	Google
                                                           and Company have agreed that Google will provide certain of its search
                                                           and advertising related services to Company, as listed in one or more
                                                           Order Forms.

 

		(B)	Each
                                                           Order Form will form a separate (and separately terminable) agreement
                                                           between Company and Google on the terms contained in the Order Form
                                                           and in this GSA.

 

AGREED
TERMS

 

		1.	Definitions

 

		1.1	In
                                                                                                  this GSA and any Order Form(s):

 

“Ad”
means an advertisement forming part of an Ad Set;

 

“Ad
Revenues” means the AdSense Revenues and ADX Revenues;

 

“Ad
Set” means a set of one or more advertisements provided through the applicable Advertising Services;

 

“Advertising
Services” means the AdSense Services and/or the ADX Services (if ordered);

 

“AdSense
Revenues” means, for each of the AdSense Services, for any period during the Term, revenues that are recognised by Google
and attributed to Ads displayed to End Users in that period in accordance with the applicable Agreement; 

 

“AdSense
Services” means the AdSense services listed on the front pages of the applicable Order Form, as updated by [* * *] from
time to time;

 

“AdSense
Site” means, for the AdSense Services, the web site(s) located at the URL(s) listed on the front pages of the
applicable Order Form in the AdSense Services section, together with any additional URL(s) approved by Google from time to time
in accordance with clause 6.3(a) of this GSA;

 

“ADX”
means Google Doubleclick Ad Exchange;

 

“ADX
Guidelines” means the guidelines applicable to the ADX Services, as provided by Google to Company from time to time;

 

“ADX
Revenues” means, for the ADX Services, for any period during the Term, revenues that are recognised by Google
and attributed to Ads displayed to End Users in that period in accordance with the applicable Agreement;

 

“ADX
Services” means the ADX services listed on the front pages of the applicable Order Form, as updated by Google from time
to time;

 

“ADX
Site” means the website(s) located at the URL(s) submitted by Company in writing to Google or through
the ADX user interface, together with additional URL(s) submitted to Google from time to time under clause 6.3(a)
of this GSA;

 

“AFC”
means the provision of content and/or placement targeted hyperlinked advertisements via Google’s AdSense for Content Service
under the applicable Agreement;

 

“AFS”
means the provision of keyword targeted hyperlinked advertisements via Google’s AdSense for Search Service under the applicable
Agreement;

 

“Agreement”
means an agreement between Company and Google on the terms contained in the applicable Order Form and this GSA;

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
1

    	 

    

 

“Approved
Client Application” means, for each of the Services, any application, plug-in, helper, component or other executable
code that runs on a user’s computer and is approved for the purpose of accessing those Services, as stated in the applicable
Order Form or as otherwise agreed between the parties from time to time in writing;

 

[*
* *];

 

“Client
ID” means an alphanumeric code as provided by Google to Company from time to time to be used to identify each Request;

 

[*
* *];

 

“Company
Content” means any content served to End Users that is not provided by Google;

 

“Company
Partner” means, in respect of the ADX Site(s): (i) the owner (if not Company) of those Sites (if Company is not the
owner of the ADX Site(s)); (ii) the third party with which Company is co-branding the ADX Site(s); or (iii) the third party for
which Company is providing the Site on a white label basis;

 

[*
* *];

 

“Confidential
Information” means information disclosed by (or on behalf of) one party to the other party under this GSA or any Agreement
that is marked as confidential or, from its nature, content or the circumstances in which it is disclosed, might reasonably be
supposed to be confidential. It does not include information that the recipient already knew, that becomes public through no fault
of the recipient, that was independently developed by the recipient or that was lawfully given to the recipient by a third party;

 

“End
Users” means individual human end users of a Site, Approved Client Application or Feed;

 

“Equivalent
Ads” means any advertisements that are the same as or substantially similar in nature to the AFS Ads provided
by Google under any Agreement.

 

“Feed”
means any RSS, or variant, feed containing content from a Site as made available by the Company from time to time;

 

[*
* *]; 

 

[*
* *];

 

“Google
Brand Features” means Google’s trade names, trademarks, logos and other distinctive
brand features; 

 

“Google
Branding Guidelines” means the then-current brand treatment guidelines applicable to the AdSense Services
and Search Services which may be found at the following URL: http://www.google.com/wssynd/02brand.html (or such other URL
Google may provide from time to time);

 

“Google
Program Guidelines” means the policy and implementation guidelines applicable to the AdSense Services and Search Services,
including any client application guidelines (where applicable), as notified to Company by Google from time to time;

 

“Google
Technical Protocols” means the Google technical protocols and other technical requirements and specifications applicable
to the Services as notified to Company by Google from time to time;

 

“Group
Company” means in relation to each of the parties, any corporate body that (directly or indirectly) controls, is controlled
by or is under common control with that party;

 

“Intellectual
Property Rights” means all copyright, moral rights, patent rights, trade marks, rights in or relating to databases,
rights in or relating to confidential information and any other intellectual property rights (registered or unregistered) throughout
the world;

 

“Net
AdSense Revenues” means, for each of the AdSense Services, for any period during the Term, AdSense Revenues for that
period [* * *];

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
2

    	 

    

 

“Order
Form” means a fully executed Google order form which incorporates this GSA;

 

[*
* *];

 

[*
* *];

 

“Request”
means a request from Company or an End User to Google for a Search Results Set and/or an Ad Set (as applicable);

 

“Results”
means Search Results Sets, Search Results, Ad Sets and/or Ads;

 

“Results
Page” means any Site page, or page forming the content in a Feed, which contains any Results;

 

“Search
Box” means a search box or other means approved by Google for the purpose of sending search queries to Google as part
of a Request;

 

[*
* *];

 

“Search
Query” means (a) a text query submitted directly on a Site or through any Approved Client Application by an End User
by way of a Search Box, [* * *];

 

“Search
Result” means a search result forming part of a Search Results Set;

 

“Search
Results Set” means a set of one or more search results provided through the applicable Search Services;

 

“Search
Services” means the search services listed on the front pages of the applicable Order Form;

 

“Search
Site” means, for the Search Services, the web site(s) located at the URL(s) listed on the front pages of the
applicable Order Form in the Search Services section, together with any additional URL(s) approved by Google from time to time
in accordance with clause 6.3(a) of this GSA;

 

“Services”
means the Advertising Services and/or Search Services (as applicable);

 

“Site”
means, the Search Site(s), the AdSense Site(s) and/or the ADX Site(s), as applicable;

 

“Term”
means the term as stated in the applicable Order Form; and

 

“Valid
Request” means a Request received by Google which: (i) contains the applicable Client ID; (ii) conforms to the applicable
Google Technical Protocols; (iii) is not generated by any automated, deceptive, fraudulent or other invalid means (including robots,
macro programs, and internet agents) as reasonably determined by Google.

 

“Year”
means, during the Term (as applicable): (a) a period of 12 months commencing on the Order Form Effective Date; or (b) any subsequent
12 month period thereafter, each commencing on the anniversary of the Order Form Effective Date;

 

“Year
One” means the first period of 12 months starting from the Order Form Effective Date.

 

		1.2	The
                                                                                                  words “include”
                                                                                                  and “including”
                                                                                                  will not limit the generality
                                                                                                  of any words preceding them.

 

		2.	Implementation
                                                                                                         Requirements

 

		2.1	Launch
                                                                                                  of the AdSense Services and
                                                                                                  Search Services

 

		(a)	The
                                                                                                      parties will each use their
                                                                                                      reasonable endeavours to
                                                                                                      launch the AdSense Services
                                                                                                      and Search Services into
                                                                                                      live use within [* * *]
                                                                                                      days from the effective
                                                                                                      date of the applicable Order
                                                                                                      Form.

 

		(b)	Company
                                                                                                      will not put its implementation
                                                                                                      of the AdSense Services
                                                                                                      and Search Services for
                                                                                                      a Site into live use (or
                                                                                                      any amended implementation
                                                                                                      pursuant to clause 6.2a
                                                                                                      or b) until Google has notified
                                                                                                      Company that the implementation
                                                                                                      for that Site is approved
                                                                                                      (this approval not to be
                                                                                                      unreasonably withheld or
                                                                                                      delayed).

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
3

    	 

    

 

		2.2	Implementation

 

		(a)	Implementation
                                                                                                      of Services on a Site, Approved
                                                                                                      Client Application or through
                                                                                                      a Feed is conditional on
                                                                                                      Company or, in the case
                                                                                                      of ADX Services, on Company
                                                                                                      or Company Partner:

 

		(i)	being
                                                                                                    the technical and editorial
                                                                                                    decision maker in relation
                                                                                                    to each page, including Results
                                                                                                    Pages, on which the Services
                                                                                                    are implemented; and

 

		(ii)	having
                                                                                                     control over the way in which
                                                                                                     the Services are implemented
                                                                                                     on each of those pages;

 

		(b)	Company
                                                                                                      will ensure that the AdSense
                                                                                                      Services and Search Services
                                                                                                      are implemented and maintained
                                                                                                      in accordance with:

 

		(i)	the
                                                                                                    applicable Google Technical
                                                                                                    Protocols;

 

		(ii)	the
                                                                                                     applicable Google Branding
                                                                                                     Guidelines;

 

		(iii)	the
                                                                                                      applicable Google Program
                                                                                                      Guidelines; and

 

		(iv)	the
                                                                                                     mock ups and specifications
                                                                                                     for such AdSense Services
                                                                                                     and Search Services set out
                                                                                                     in the exhibits to the applicable
                                                                                                     Order Form, unless otherwise
                                                                                                     approved by Google or permitted
                                                                                                     in accordance with clause
                                                                                                     6.2(a), (b) or (c).

 

If
there is any conflict between: (a) the items listed in 2.2(b) (i), (ii) and (iii); and (b) the mock ups and specifications referred
to in 2.2(b) (iv), then the items listed in 2.2(b) (i), (ii)
and (iii) shall take precedence over 2.2(b) (iv), and Company shall make all changes requested
by Google in respect of the implementation of the AdSense Services and Search Services to resolve such conflict.

 

		(c)	Company
                                                                                                      will ensure that the ADX
                                                                                                      Services are implemented
                                                                                                      and maintained in accordance
                                                                                                      with:

 

		(i)	the
                                                                                                    applicable Google Technical
                                                                                                    Protocols; and

 

		(ii)	the
                                                                                                     ADX Guidelines.

 

		2.3	Requests

 

		(a)	Google
                                                                                                      will:

 

		(i)	for
                                                                                                    each Valid Request received
                                                                                                    by it, where available provide
                                                                                                    a Search Results Set or an
                                                                                                    Ad Set (as applicable); and

 

		(ii)	[*
                                                                                                     * *].

 

		(b)	Company
                                                                                                      will:

 

		(i)	ensure
                                                                                                    that every Search Query generates
                                                                                                    a Request containing that
                                                                                                    Search Query;

 

		(ii)	ensure
                                                                                                     that all Requests are sent
                                                                                                     to Google without editing,
                                                                                                     modifying or filtering the
                                                                                                     Requests or any Search Queries
                                                                                                     contained in the Requests
                                                                                                     individually or in the aggregate;
                                                                                                     and

 

		(iii)	display
                                                                                                      the Search Results Sets
                                                                                                      and/or Ad Sets (as applicable)
                                                                                                      on the applicable Site or
                                                                                                      as part of the applicable
                                                                                                      Feed.

 

		2.4	[*
                                                                                                  * *]

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
4

    	 

    

 

		3.	[*
                                                                                                         * *]

 

		4.	Policy
                                                                                                         and Compliance Obligations

 

		4.1	Company
                                                                                                   will not, and will not knowingly
                                                                                                   or negligently allow any third
                                                                                                   party to:

 

		(a)	modify,
                                                                                                      obscure or prevent the display
                                                                                                      of all, or any part of,
                                                                                                      any Results;

 

		(b)	edit,
                                                                                                      filter, truncate, append
                                                                                                      terms to or otherwise modify
                                                                                                      any Search Query;

 

		(c)	implement
                                                                                                      any click tracking or other
                                                                                                      monitoring of Results;

 

		(d)	display
                                                                                                      any Results in pop-ups,
                                                                                                      pop-unders, exit windows,
                                                                                                      expanding buttons, animation
                                                                                                      or other similar methods;

 

		(e)	interfere
                                                                                                      with the display of or frame
                                                                                                      any Results Page or any
                                                                                                      page accessed by clicking
                                                                                                      on any Results;

 

		(f)	display
                                                                                                      any content between any
                                                                                                      Results and any page accessed
                                                                                                      by clicking on those Results
                                                                                                      or place any interstitial
                                                                                                      content immediately before
                                                                                                      any Results Page containing
                                                                                                      any Search Results;

 

		(g)	enter
                                                                                                      into any type of co-branding,
                                                                                                      white labeling or sub-syndication
                                                                                                      arrangement with any third
                                                                                                      party in connection with
                                                                                                      any Results or Ad revenue
                                                                                                      (including any arrangement
                                                                                                      under which a third party
                                                                                                      pays to or receives from
                                                                                                      Company any fees, revenue
                                                                                                      share or other amounts in
                                                                                                      return for the display of
                                                                                                      Results), except that Company
                                                                                                      may enter into an arrangement
                                                                                                      with a Company Partner in
                                                                                                      accordance with the relevant
                                                                                                      Agreement where the ADX
                                                                                                      Services are implemented
                                                                                                      on the ADX Site(s) of that
                                                                                                      Company Partner;

 

		(h)	directly
                                                                                                      or indirectly: (i) offer
                                                                                                      incentives to End Users
                                                                                                      to generate Requests or
                                                                                                      clicks on Results; (ii)
                                                                                                      fraudulently generate Requests
                                                                                                      or clicks on Results; or
                                                                                                      (iii) modify Requests or
                                                                                                      clicks on Results;

 

		(i)	“crawl”,
                                                                                                      “spider”, index
                                                                                                      or in any non-transitory
                                                                                                      manner store or cache information
                                                                                                      obtained from the Services
                                                                                                      (including any Results);

 

		(j)	display
                                                                                                      on any Site, Approved Client
                                                                                                      Application or Feed, any
                                                                                                      content that violates or
                                                                                                      encourages conduct that
                                                                                                      would violate any applicable
                                                                                                      laws, any third party rights,
                                                                                                      the Google Program Guidelines
                                                                                                      or Google Technical Protocols
                                                                                                      applicable to the AdSense
                                                                                                      Services or Search Services,
                                                                                                      or the ADX Guidelines applicable
                                                                                                      to the ADX Services, as
                                                                                                      notified to Company by Google
                                                                                                      from time to time;

 

		(k)	send
                                                                                                      Requests to Google which
                                                                                                      are not Valid Requests;
                                                                                                      or

 

		(l)	provide
                                                                                                      End Users with access (directly
                                                                                                      or indirectly) to any Results
                                                                                                      or Services using any application,
                                                                                                      plug-in, helper, component
                                                                                                      or other executable code
                                                                                                      that runs on a user’s
                                                                                                      computer, other than an
                                                                                                      Approved Client Application.

 

		4.2	Google
                                                                                                  may generate a reasonable number
                                                                                                  of Requests or make a reasonable
                                                                                                  number of uncompensated clicks
                                                                                                  on any Results at any time to
                                                                                                  check that that the Services
                                                                                                  continue to be implemented in
                                                                                                  accordance with the applicable
                                                                                                  Agreement and are functioning
                                                                                                  well.

 

		5.	Compliance

 

		5.1	Company
                                                                                                  will not knowingly or negligently
                                                                                                  allow any use of or access to
                                                                                                  the Services through any Site,
                                                                                                  Approved Client Application
                                                                                                  or Feed which is not in compliance
                                                                                                  with the terms of the applicable
                                                                                                  Agreement or not otherwise approved
                                                                                                  by Google. Company will use
                                                                                                  its reasonable endeavours to
                                                                                                  monitor for any such access
                                                                                                  or use and will, if any such
                                                                                                  access or use is detected, take
                                                                                                  all reasonable steps requested
                                                                                                  by Google to disable this access
                                                                                                  or use. Notwithstanding clause
                                                                                                  15.2, if Company is not in compliance with this
GSA or any Agreement at any time, Google may, [* * *], suspend provision of all (or any part of)
the applicable Services until Company implements adequate corrective modifications as reasonably required and determined by Google.

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
5

    	 

    

 

		5.2	Company
                                                                                                  will procure that Company Partner
                                                                                                  uses, or accesses the ADX Services,
                                                                                                  including Results, in accordance
                                                                                                  with this GSA and any Agreement,
                                                                                                  as if Company’s obligations
                                                                                                  in this GSA and any Agreement
                                                                                                  were obligations on Company
                                                                                                  Partner. Company will not provide
                                                                                                  Company Partner with access
                                                                                                  to the ADX user interface. Company
                                                                                                  accepts full liability for the
                                                                                                  actions and/or inactions of
                                                                                                  the Company Partner as if such
                                                                                                  actions and/or inactions were
                                                                                                  Company’s own.

 

		6.	Changes
                                                                                                         and Modifications

 

		6.1	By
                                                                                                  Google. If Google modifies
                                                                                                  any Google Branding Guidelines,
                                                                                                  Google Program Guidelines, Google
                                                                                                  Technical Protocols or ADX Guidelines
                                                                                                  and the modification requires
                                                                                                  action by Company then, subject
                                                                                                  to clause 6.2(e), Company will
                                                                                                  complete the necessary action
                                                                                                  no later than [*
                                                                                                  * *] days from receipt of notice
                                                                                                  from Google of the modification.

 

		6.2	By
                                                                                                  Company

 

		(a)	Unless
                                                                                                      approved in writing in advance
                                                                                                      by Google, Company will
                                                                                                      not make any changes in
                                                                                                      relation to:

 

		(i)	the
                                                                                                    display or implementation
                                                                                                    of the Search Box, including
                                                                                                    changes to the format, size
                                                                                                    or placement of the Search
                                                                                                    Box;

 

		(ii)	the
                                                                                                     display of Search Results
                                                                                                     Sets, Search Results, AFC
                                                                                                     Ad Sets or AFC Ads on a Results
                                                                                                     Page, including changes to
                                                                                                     their number, colour, font,
                                                                                                     size or placement or the
                                                                                                     extent to which they are
                                                                                                     clickable;

 

		(iii)	the
                                                                                                      display of Equivalent Ads,
                                                                                                      AFS Ad Sets or AFS Ads on
                                                                                                      a Results Page, including
                                                                                                      changes to their number,
                                                                                                      colour, font, size or placement
                                                                                                      or the extent to which they
                                                                                                      are clickable; or

 

		(iv)	the
                                                                                                     use of any Google Brand Features
                                                                                                     or other attribution or similar
                                                                                                     wording.

 

		(b)	Where
                                                                                                      Company requests approval
                                                                                                      pursuant to clause [* *
                                                                                                      *], Google may only withhold
                                                                                                      its approval on grounds
                                                                                                      that the proposed change
                                                                                                      would be in breach of the
                                                                                                      applicable Agreement or
                                                                                                      the Google Branding Guidelines
                                                                                                      [* * *]. If Google does
                                                                                                      not respond to any such
                                                                                                      request for approval within
                                                                                                      [* * *] business days of
                                                                                                      receipt from Company, such
                                                                                                      approval shall be [* * *]
                                                                                                      by Google. Notwithstanding
                                                                                                      the foregoing, Company shall
                                                                                                      at all times comply with
                                                                                                      the requirements of clause
                                                                                                      7.2(b).

 

		(c)	Subject
                                                                                                      to clauses 6.2(a) and (b),
                                                                                                      Company may update the design
                                                                                                      and content of any Site,
                                                                                                      Approved Client Application
                                                                                                      or Feed in a manner consistent
                                                                                                      with its obligations under
                                                                                                      this Agreement.

 

		(d)	Company
                                                                                                      will provide Google with
                                                                                                      at least [* * *] days advance
                                                                                                      notice of any change in
                                                                                                      code or serving technology
                                                                                                      that could reasonably be
                                                                                                      expected to affect use of
                                                                                                      the Services.

 

		(e)	If
                                                                                                      a fault in Company’s
                                                                                                      implementation of the Services
                                                                                                      (or any of them) could cause
                                                                                                      or is causing an interruption
                                                                                                      or degradation of the Services
                                                                                                      (or any of them), Company
                                                                                                      will make the required fixes
                                                                                                      or changes [* * *].

 

		6.3	Site
                                                                                                  List Changes

 

		(a)	Company
                                                                                                      may notify Google from time
                                                                                                      to time that it wishes to
                                                                                                      add additional URLs to those
                                                                                                      comprising the AdSense Site(s)
                                                                                                      or Search Site(s), such
                                                                                                      notification to be sent
                                                                                                      to Google at least [* *
                                                                                                      *] days (or such shorter
                                                                                                      period as Google may agree)
                                                                                                      before Company wishes the
                                                                                                      addition to take effect.
                                                                                                      Google may approve or disapprove
                                                                                                      the request at its reasonable
                                                                                                      discretion, this approval
                                                                                                      or disapproval to be in
                                                                                                      writing.

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
6

    	 

    

 

		(b)	Company
                                                                                                      may notify Google from time
                                                                                                      to time that it wishes to
                                                                                                      add additional URLS or remove
                                                                                                      URL(s) to those comprising
                                                                                                      the ADX Site(s) by either
                                                                                                      sending notice to Google
                                                                                                      or adding or removing the
                                                                                                      URL(s) through the ADX user
                                                                                                      interface.

 

		(c)	If
                                                                                                      there is any change in control
                                                                                                      of any Site or Feed (such
                                                                                                      that the conditions set
                                                                                                      out in clause 2.2 (a) are
                                                                                                      not met):

 

		(i)	Company
                                                                                                    will notify Google at least
                                                                                                    [* * *] days in advance of
                                                                                                    the change;

 

		(ii)	unless
                                                                                                     the entire applicable Agreement
                                                                                                     is assigned to a third party
                                                                                                     in accordance with clause
                                                                                                     16.3, from the date of such
                                                                                                     change that Site or Feed
                                                                                                     will be treated as removed
                                                                                                     from the applicable Order
                                                                                                     Form and Company will ensure
                                                                                                     that from that date the Services
                                                                                                     are no longer implemented
                                                                                                     on that Site or through the
                                                                                                     applicable Feed(s).

 

		7.	Similar
                                                                                                         Services

 

		7.1	[*
                                                                                                  * *]

 

		7.2	AdSense
                                                                                                  for Search. The parties
                                                                                                  agree that: [* * *].

 

		7.3	General.
                                                                                                  Subject to clauses 7.1
                                                                                                  and 7.2, Company may display
                                                                                                  [* * *] anywhere on any page
                                                                                                  of any Site, through any Approved
                                                                                                  Client Application or as part
                                                                                                  of any Feed.

 

		8.	Intellectual
                                                                                                         Property Rights

 

Except
to the extent expressly stated otherwise in this GSA or any Agreement, neither party will acquire any right, title, or interest
in any Intellectual Property Rights belonging to the other party, or the other party’s licensors.

 

		9.	Trade
                                                                                                         mark licence

 

		9.1	Google
                                                                                                  grants to Company a non-exclusive
                                                                                                  and non-sublicensable licence
                                                                                                  during the Term to use the Google
                                                                                                  Brand Features solely to fulfil
                                                                                                  Company’s obligations
                                                                                                  under the applicable Agreement
                                                                                                  in accordance with its terms
                                                                                                  and subject to compliance with
                                                                                                  the Google Branding Guidelines
                                                                                                  in respect of the AdSense Services
                                                                                                  and/or Search Services.

 

		9.2	All
                                                                                                  goodwill arising from the use
                                                                                                  by Company of the Google Brand
                                                                                                  Features will belong to Google.

 

		9.3	Company
                                                                                                                                              hereby
                                                                                                                                              grants
                                                                                                                                              to
                                                                                                                                              Google
                                                                                                                                              a
                                                                                                                                              non-exclusive
                                                                                                                                              and
                                                                                                                                              non-sublicensable
                                                                                                                                              licence
                                                                                                                                              during
                                                                                                                                              the
                                                                                                                                              Term
                                                                                                                                              to
                                                                                                                                              include
                                                                                                                                              Company’s
                                                                                                                                              name
                                                                                                                                              and
                                                                                                                                              logo
                                                                                                                                              in
                                                                                                                                              presentations,
                                                                                                                                              marketing
                                                                                                                                              materials
                                                                                                                                              and
                                                                                                                                              customer
                                                                                                                                              lists
                                                                                                                                              (including,
                                                                                                                                              but
                                                                                                                                              not
                                                                                                                                              limited
                                                                                                                                              to,
                                                                                                                                              in
                                                                                                                                              customer
                                                                                                                                              lists
                                                                                                                                              posted
                                                                                                                                              on
                                                                                                                                              Google’s
                                                                                                                                              web
                                                                                                                                              sites
                                                                                                                                              and
                                                                                                                                              in
                                                                                                                                              screen
                                                                                                                                              shots
                                                                                                                                              of
                                                                                                                                              Company’s
                                                                                                                                              implementation
                                                                                                                                              of
                                                                                                                                              the
                                                                                                                                              Services).

 

		9.4	All
                                                                                                  goodwill arising from the use
                                                                                                  by Google of the Company Brand
                                                                                                  Features will belong to Company.

 

		9.5	[*
                                                                                                  * *].

 

		10.	Payment

 

		10.1	Search
                                                                                                   Services

 

		(a)	Company
                                                                                                      will pay the search fees
                                                                                                      stated on the applicable
                                                                                                      Order Form to Google within
                                                                                                      [* * *] days of the date
                                                                                                      of invoice.

 

		(b)	The
                                                                                                      number of Requests for Search
                                                                                                      Results Sets as reported
                                                                                                      by Google will be the number
                                                                                                      used in calculating payments
                                                                                                      owed to Google under the
                                                                                                      applicable Agreement.

  

		(c)	Google
                                                                                                      will invoice Company for
                                                                                                      all Search Services [* *
                                                                                                      *].

 

		10.2	AdSense
                                                                                                   Services

 

For
each of the AdSense Services, Google will pay to Company [* * *].

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
7

    	 

    

 

		10.3	ADX
                                                                                                   Services

 

For
the ADX Services, Google will pay to Company [* * *] the percentage of the ADX Revenues stated in the applicable Order Form, provided
the [* * *] amount owed to Company in a given month is above the minimum set forth in the ADX Guidelines.

 

		10.4	All
                                                                                                   Services

 

		(a)	If,
                                                                                                      at any point during the
                                                                                                      applicable Term, any taxes
                                                                                                      (other than taxes based
                                                                                                      on Google's net income)
                                                                                                      are, or become, payable
                                                                                                      in relation to the provision
                                                                                                      of the Services by Google
                                                                                                      to Company, Company will
                                                                                                      be responsible for paying
                                                                                                      such taxes. All payments
                                                                                                      to Company from Google in
                                                                                                      relation to the Services
                                                                                                      will be treated as inclusive
                                                                                                      of tax (if applicable) and
                                                                                                      will not be adjusted. If
                                                                                                      Google is obliged to withhold
                                                                                                      any taxes from such payments
                                                                                                      to Company, Google will
                                                                                                      notify Company of this and
                                                                                                      will make such payments
                                                                                                      net of the withheld amounts. 
                                                                                                      Google will provide Company
                                                                                                      with original or certified
                                                                                                      copies of tax payments (or
                                                                                                      other sufficient evidence
                                                                                                      of tax payments) if any
                                                                                                      of these payments are made
                                                                                                      by Google.

 

		(b)	In
                                                                                                      respect of the Search Services
                                                                                                      and the AdSense Services,
                                                                                                      all payments due to Google
                                                                                                      or to Company will be in
                                                                                                      the currency specified in
                                                                                                      the applicable Order Form
                                                                                                      and made by electronic transfer
                                                                                                      to the account notified
                                                                                                      to the paying party by the
                                                                                                      other party for that purpose.
                                                                                                      In respect of the ADX Services,
                                                                                                      all payments to Company
                                                                                                      will be in the form of payment
                                                                                                      and currency specified by
                                                                                                      Company in the ADX user
                                                                                                      interface. In all cases,
                                                                                                      the party receiving payment
                                                                                                      will be responsible for
                                                                                                      any bank charges assessed
                                                                                                      by the recipient's bank.

 

		(c)	Google
                                                                                                      will, unless it has notified
                                                                                                      Company otherwise, set off
                                                                                                      the search fees payable
                                                                                                      by Company under an Agreement
                                                                                                      against Google’s payment
                                                                                                      obligations to Company under
                                                                                                      that Agreement.

 

		(d)	If
                                                                                                      Google recognises any ad
                                                                                                      revenues in error or otherwise
                                                                                                      overpays Company for any
                                                                                                      reason, Google will, unless
                                                                                                      it has notified Company
                                                                                                      otherwise, set off the overpaid
                                                                                                      amounts against Google’s
                                                                                                      payment obligations to Company
                                                                                                      under the Agreement to which
                                                                                                      the overpaid amounts related
                                                                                                      or require Company to pay
                                                                                                      to Google within [* * *]
                                                                                                      days of an invoice, any
                                                                                                      such overpaid amounts.

 

		(e)	Google
                                                                                                      or Company (as applicable)
                                                                                                      may charge interest at the
                                                                                                      rate of [* * *] above the
                                                                                                      base rate of Barclays Bank
                                                                                                      PLC from time to time, from
                                                                                                      the due date until the date
                                                                                                      of actual payment, whether
                                                                                                      before or after judgment:
                                                                                                      (i) in the case of Google,
                                                                                                      on any fee for Search Services
                                                                                                      which is overdue; and (ii)
                                                                                                      in the case of Company,
                                                                                                      on any payments to be made
                                                                                                      by Google to Company in
                                                                                                      relation to Advertising
                                                                                                      Services which are overdue,
                                                                                                      unless such payments have
                                                                                                      been set off.

 

		11.	Warranties

 

		11.1	Each
                                                                                                   party warrants to the other
                                                                                                   that it will use reasonable
                                                                                                   care and skill in complying
                                                                                                   with its obligations under
                                                                                                   this GSA and any Agreement(s).

 

		11.2	No
                                                                                                   conditions, warranties or other
                                                                                                   terms apply to any Services
                                                                                                   or to any other goods or services
                                                                                                   supplied by Google under this
                                                                                                   GSA or any Agreement unless
                                                                                                   expressly set out in this GSA
                                                                                                   or the applicable Agreement.
                                                                                                   Subject to clause 13.1(b),
                                                                                                   no implied conditions, warranties
                                                                                                   or other terms apply (including
                                                                                                   any implied terms as to satisfactory
                                                                                                   quality, fitness for purpose
                                                                                                   or conformance with description).

 

		12.	Indemnities

 

		12.1	If
                                                                                                   either:

 

		(a)	Company
                                                                                                      receives a claim from a
                                                                                                      third party that either
                                                                                                      Google’s or any Google
                                                                                                      Group Company’s technology
                                                                                                      used to provide the Services
                                                                                                      or, where Company has ordered
                                                                                                      the Search Services and/or
                                                                                                      AdSense Services, any Google
                                                                                                      Brand Feature infringe(s)
                                                                                                      any Intellectual Property
                                                                                                      Rights of that third party;
                                                                                                      or

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
8

    	 

    

 

		(b)	Google
                                                                                                      receives a claim from a
                                                                                                      third party that the Company
                                                                                                      Content, Site and/or Approved
                                                                                                      Client Application (if any)
                                                                                                      infringe(s) any Intellectual
                                                                                                      Property Rights of that
                                                                                                      third party or a claim from
                                                                                                      a Company Partner relating
                                                                                                      to any use of, or access
                                                                                                      to, the ADX Services, or
                                                                                                      the implementation or display
                                                                                                      of Ads on a Site of a Company
                                                                                                      Partner;

 

		(c)	(in
                                                                                                      each case, an “IP
                                                                                                      Claim”) then the
                                                                                                      party which received such
                                                                                                      IP Claim (the “Recipient”)
                                                                                                      will:

 

		(i)	promptly
                                                                                                    notify the other party;

 

		(ii)	provide
                                                                                                     the other party with reasonable
                                                                                                     information, assistance and
                                                                                                     cooperation in responding
                                                                                                     to and, where applicable,
                                                                                                     defending such IP Claim;
                                                                                                     and

 

		(iii)	give
                                                                                                      the other party full control
                                                                                                      and sole authority over
                                                                                                      the defence and settlement
                                                                                                      of such IP Claim. The Recipient
                                                                                                      may appoint its own supervising
                                                                                                      counsel of its choice at
                                                                                                      its own expense.

 

		12.2	Provided
                                                                                                   the Recipient complies with
                                                                                                   clause 12.1(i) to (iii) and
                                                                                                   subject (if applicable) to
                                                                                                   clause 12.3, the party notified
                                                                                                   in accordance with clause 12.1(i)
                                                                                                   (the “Indemnifying
                                                                                                   Party”) will accept
                                                                                                   full control and sole authority
                                                                                                   over the defence and settlement
                                                                                                   of such IP Claim and will indemnify
                                                                                                   the Recipient against all damages
                                                                                                   and costs awarded for such
                                                                                                   IP Claim, settlement costs
                                                                                                   approved in writing by the
                                                                                                   Indemnifying Party in relation
                                                                                                   to such IP Claim, reasonable
                                                                                                   legal fees necessarily incurred
                                                                                                   by the Recipient in relation
                                                                                                   to such IP Claim and reasonable
                                                                                                   costs necessarily incurred
                                                                                                   by the Recipient in complying
                                                                                                   with clause 12.1(i) to (iii).

 

		12.3	Google
                                                                                                   will not have any obligations
                                                                                                   or liability under this clause
                                                                                                   12 in relation to any IP Claim
                                                                                                   arising from any:

 

		(a)	use
                                                                                                      of the Services or Google
                                                                                                      Brand Features in a modified
                                                                                                      form or in combination
                                                                                                      with materials not furnished
                                                                                                      by Google;

 

		(b)	[*
                                                                                                      * *];

 

		(c)	[*
                                                                                                      * *];

 

		(d)	acts
                                                                                                      or omissions by Company
                                                                                                      Partner.

 

		12.4	Google
                                                                                                   may (at its sole discretion)
                                                                                                   suspend Company’s use
                                                                                                   of any Services or Google Brand
                                                                                                   Features which are alleged,
                                                                                                   or believed by Google, to infringe
                                                                                                   any third party’s Intellectual
                                                                                                   Property Rights, or to modify
                                                                                                   such Services or Google Brand
                                                                                                   Features to make them non-infringing.
                                                                                                   [* * *]. If any suspension
                                                                                                   of Services under this clause
                                                                                                   continues for more than [*
                                                                                                   * *] days, Company may, at
                                                                                                   any time until use of the applicable
                                                                                                   Services is reinstated, terminate
                                                                                                   the applicable Agreement [*
                                                                                                   * *].

 

		12.5	This
                                                                                                   clause 12 states the parties’
                                                                                                   entire liability and exclusive
                                                                                                   remedy with respect to infringement
                                                                                                   of a third party’s Intellectual
                                                                                                   Property Rights.

 

		13.	Limitation
                                                                                                          of Liability

 

		13.1	Nothing
                                                                                                   in this GSA or any Agreement
                                                                                                   will exclude or limit either
                                                                                                   party’s liability for:

 

		(a)	death
                                                                                                      or personal injury resulting
                                                                                                      from the negligence of either
                                                                                                      party or their servants,
                                                                                                      agents or employees;

 

		(b)	fraud
                                                                                                      or fraudulent misrepresentation;

 

		(c)	misuse
                                                                                                      of Confidential Information.

 

		13.2	Save
                                                                                                   to the extent that this GSA
                                                                                                   expressly states otherwise,
                                                                                                   nothing in this GSA or any
                                                                                                   Order Form will exclude or
                                                                                                   limit either party’s
                                                                                                   liability under clause 12 (Indemnities).

 

		13.3	Subject
                                                                                                   to clauses 13.1 and 13.2, neither
                                                                                                   party will be liable under
                                                                                                   any Agreement (whether in contract,
                                                                                                   tort or otherwise) for any
                                                                                                   special, indirect or consequential
                                                                                                   losses (whether or not such
                                                                                                   losses were within the contemplation
                                                                                                   of the parties at the date
                                                                                                   of this Agreement) suffered
                                                                                                   or incurred by the other party.

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
9

    	 

    

 

		(a)	Subject
                                                                                                      to clauses 13.1, 13.2 and
                                                                                                      13.3, each party's aggregate
                                                                                                      liability under any Agreement
                                                                                                      (whether in contract, tort
                                                                                                      or otherwise) arising in
                                                                                                      any Year, is limited as
                                                                                                      follows:

 

		(b)	in
                                                                                                      the case of Google, to [*
                                                                                                      * *]% of the total amount
                                                                                                      of:

 

		(c)	fees
                                                                                                      paid and payable by Company
                                                                                                      to Google under the applicable
                                                                                                      Agreement in the immediately
                                                                                                      preceding Year; plus

 

		(d)	Net
                                                                                                      AdSense Revenues accrued
                                                                                                      under the applicable Agreement
                                                                                                      minus the percentage of
                                                                                                      such Net Ad Revenues paid
                                                                                                      and payable by Google to
                                                                                                      Company in the immediately
                                                                                                      preceding Year; plus

 

		(e)	the
                                                                                                      ADX Revenues accrued under
                                                                                                      the applicable Agreement
                                                                                                      paid and payable by Google
                                                                                                      to Company in the immediately
                                                                                                      preceding Year;

 

		(f)	in
                                                                                                      the case of Company, to
                                                                                                      [* * *]% of the total amount
                                                                                                      paid and payable by Google
                                                                                                      to Company under the applicable
                                                                                                      Agreement in the immediately
                                                                                                      preceding Year.

 

If
the relevant liability occurs in Year One, the amounts referred to above in (a) and (b) shall be calculated on a pro-rata basis,
as [* * *]% of X/Y x Z. Where:

 

In
the case of clause 13.3(b), X = (a) the fees paid and payable by Company to Google under the applicable Agreement
in Year One up until the date when the relevant liability is required to be assessed (the “Applicable Time”);
plus (b) the Net Ad Revenues accrued under the applicable Agreement minus the percentage of such Net Ad Revenues paid and
payable by Google to Company in Year One up until the Applicable Time; plus (c) the ADX Revenues
accrued under the applicable Agreement paid and payable by Google to Company in Year One up until the Applicable Time;

 

In
the case of clause 13.3(f), X = the total amount paid and payable by Google to Company under the applicable Agreement in Year
One up until the Applicable Time;

 

Y
= the number of days elapsed in Year One up until the Applicable Time; and

 

Z
= 365.

 

		14.	Confidentiality

 

		14.1	The
                                                                                                   recipient of any Confidential
                                                                                                   Information will not disclose
                                                                                                   that Confidential Information,
                                                                                                   except to Group Companies,
                                                                                                   employees and/or professional
                                                                                                   advisors who need to know it
                                                                                                   and who have agreed in writing
                                                                                                   (or in the case of professional
                                                                                                   advisors are otherwise bound)
                                                                                                   to keep it confidential. The
                                                                                                   recipient will ensure that
                                                                                                   those people and entities:
                                                                                                   a) use such Confidential Information
                                                                                                   only to exercise rights and
                                                                                                   fulfil obligations under this
                                                                                                   Agreement, and b) keep such
                                                                                                   Confidential Information confidential.
                                                                                                   The recipient may also disclose
                                                                                                   Confidential Information when
                                                                                                   required by law after giving
                                                                                                   reasonable notice to the discloser,
                                                                                                   such notice to be sufficient
                                                                                                   to give the discloser the opportunity
                                                                                                   to seek confidential treatment,
                                                                                                   a protective order or similar
                                                                                                   remedies or relief prior to
                                                                                                   disclosure.

 

		14.2	Notwithstanding
                                                                                                   clause 14.1 above, and except,
                                                                                                   in respect of ADX Services,
                                                                                                   as specified by Company’s
                                                                                                   anonymity preferences selected
                                                                                                   in the ADX user interface,
                                                                                                   Google may: (i) share Site-specific
                                                                                                   statistics, the Site URL(s),
                                                                                                   and related information collected
                                                                                                   by Google through its provision
                                                                                                   of the Advertising Services
                                                                                                   to Company with advertisers
                                                                                                   or potential advertisers; (ii)
                                                                                                   share know how gained by Google
                                                                                                   through its provision of the
                                                                                                   Services to Company (including
                                                                                                   sharing information illustrating
                                                                                                   this know how presented in
                                                                                                   an anonymised or aggregated
                                                                                                   form) with third parties. In
                                                                                                   either case, this sharing of
                                                                                                   information will not include
                                                                                                   any sharing of personally identifying
                                                                                                   information.

 

		14.3	Notwithstanding
                                                                                                   clause 14.1 above, Company
                                                                                                   may disclose to Company Partner,
                                                                                                   or to any other third party,
                                                                                                   the ADX reports provided by
                                                                                                   Google to Company. Company
                                                                                                   shall not disclose to any Company
                                                                                                   Partners, or any other third
                                                                                                   party, the Percentage of ADX
                                                                                                   Revenues payable to Company,
                                                                                                   or any information that could
                                                                                                   allow such Company Partners
                                                                                                   or third party to calculate
                                                                                                   the Percentage of ADX Revenues
                                                                                                   payable to Company.

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
10

    	 

    

 

		14.4	Company
                                                                                                   will ensure that at all times
                                                                                                   during the applicable Term,
                                                                                                   Company or, in the case of
                                                                                                   ADX Services, Company and Company
                                                                                                   Partner has a clearly labelled
                                                                                                   and easily accessible privacy
                                                                                                   policy in place relating to
                                                                                                   the applicable Site(s) and
                                                                                                   that this privacy policy:

 

		(a)	clearly
                                                               discloses to End Users that third parties may be placing and reading
                                                               cookies on End Users’ browsers or using web beacons to collect
                                                               information in the course of advertising being served on the applicable
                                                               Site(s); and

 

		(b)	includes
                                                               information about End Users’ options for cookie management.

 

		14.5	Google
                                                                                                   may migrate data derived from
                                                                                                   Company’s use of the
                                                                                                   DoubleClick Advertising Exchange
                                                                                                   to ADX. The parties agree that
                                                                                                   any data migrated to ADX will
                                                                                                   be subject solely to the terms
                                                                                                   of this GSA or any Agreement.

 

		14.6	Neither
                                                                                                   party will issue any press
                                                                                                   release regarding this GSA
                                                                                                   or any Agreement without the
                                                                                                   other’s prior written
                                                                                                   approval.

 

		15.	Term
                                                                                                         and Termination

 

		15.1	This
                                                                                                   GSA will commence on the GSA
                                                                                                   Effective Date and remain in
                                                                                                   force until it terminates or
                                                                                                   expires in accordance with
                                                                                                   its terms. Each Agreement shall
                                                                                                   (unless earlier terminated
                                                                                                   in accordance with its terms)
                                                                                                   remain in force for the Term,
                                                                                                   at the end of which it shall
                                                                                                   expire automatically.

 

		15.2	Without
                                                                                                   prejudice to clause 5.1, a
                                                                                                   party may suspend performance
                                                                                                   under any Agreement (in whole
                                                                                                   or in respect of a page of
                                                                                                   a Site, a Site or Sites) and/or
                                                                                                   terminate any Agreement (in
                                                                                                   whole) or remove a page of
                                                                                                   a Site, a Site or Sites from
                                                                                                   any Agreement with immediate
                                                                                                   effect, if the other party:

 

		(a)	is
                                                                                                      in material breach of the
                                                                                                      Agreement where the breach
                                                                                                      is incapable of remedy;

 

		(b)	is
                                                                                                      in material breach of the
                                                                                                      Agreement where the breach
                                                                                                      is capable of remedy and
                                                                                                      fails to remedy that breach
                                                                                                      within [* * *] days after
                                                                                                      receiving written notice
                                                                                                      of such breach; or

 

		(c)	is
                                                                                                      in material breach of the
                                                                                                      Agreement more than [* *
                                                                                                      *] even if the previous
                                                                                                      breaches were remedied,

 

provided
(in each case) that any such suspension or removal of a page(s) or Site(s) may only take effect in relation to the page(s) or
Site(s) on (or in respect of which) the relevant breach has occurred.

 

		15.3	A
                                                                                                   party may suspend performance
                                                                                                   and/or terminate this GSA (and
                                                                                                   all Agreements) with immediate
                                                                                                   effect, if:

 

		(a)	the
                                                                                                      other party enters into
                                                                                                      an arrangement or composition
                                                                                                      with or for the benefit
                                                                                                      of its creditors, goes into
                                                                                                      administration, receivership
                                                                                                      or administrative receivership,
                                                                                                      is declared bankrupt or
                                                                                                      insolvent or is dissolved
                                                                                                      or otherwise ceases to carry
                                                                                                      on business; or

 

		(b)	any
                                                                                                      analogous event happens
                                                                                                      to the other party in any
                                                                                                      jurisdiction in which it
                                                                                                      is incorporated or resident
                                                                                                      or in which it carries on
                                                                                                      business or has assets.

 

		15.4	A
                                                                                                   party may terminate this GSA
                                                                                                   (and all Agreements) immediately
                                                                                                   upon written notice if there
                                                                                                   is a Change of Control of the
                                                                                                   other party. In this clause
                                                                                                   the term “Control”
                                                                                                   will mean the possession by
                                                                                                   any person(s) directly or indirectly
                                                                                                   of the power to direct or cause
                                                                                                   the direction of another person
                                                                                                   and “Change of Control”
                                                                                                   is to be construed accordingly.
                                                                                                   The party experiencing such
                                                                                                   Change of Control will notify
                                                                                                   the other party in writing
                                                                                                   of this as soon as reasonably
                                                                                                   possible (and if possible before
                                                                                                   such Change of Control takes
                                                                                                   effect) but in any event within
                                                                                                   [* * *] days after the date
                                                                                                   on which the Change of Control
                                                                                                   takes effect. If the terminating
                                                                                                   party has not exercised its
                                                                                                   right of termination under
                                                                                                   this clause within [* * *]
                                                                                                   days after the date of receiving
                                                                                                   the notice, that right of termination
                                                                                                   will expire.

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
11

    	 

    

 

		15.5	Google
                                                                                                   has the right (in its sole
                                                                                                   discretion) with [* * *] days
                                                                                                   notice to Company to remove
                                                                                                   or require Company to remove
                                                                                                   the AFC Services from any Site
                                                                                                   (or part of a Site) on which
                                                                                                   the AFC RPM falls below US$[*
                                                                                                   * *] for the previous calendar
                                                                                                   month. For the purposes of
                                                                                                   this clause 15.5, “AFC
                                                                                                   RPM” means AFC AdSense
                                                                                                   Revenues per one thousand AFC
                                                                                                   Requests.
                                                                                                   [* * *].

 

		15.6	[*
                                                                                                   * *].

 

		15.7	The
                                                                                                   parties acknowledge that following
                                                                                                   any removal of the AFC Services
                                                                                                   from any Site or termination
                                                                                                   of an Agreement pursuant to
                                                                                                   clause 15.5 or 15.6, Company
                                                                                                   may continue to receive the
                                                                                                   applicable Google advertising
                                                                                                   services in relation to the
                                                                                                   relevant Site (or part of a
                                                                                                   Site) by entering into an online
                                                                                                   agreement with Google in respect
                                                                                                   of such services and Site.

 

		15.8	Upon
                                                                                                   the expiration or termination
                                                                                                   of this GSA for any reason:

 

		(a)	all
                                                                                                      rights and licences granted
                                                                                                      by each party will cease
                                                                                                      immediately;

 

		(b)	[*
                                                                                                      * *];

 

		(c)	if
                                                                                                      requested, each party will
                                                                                                      use its reasonable endeavours
                                                                                                      to promptly return to the
                                                                                                      other party, or destroy
                                                                                                      and certify the destruction
                                                                                                      of, all Confidential Information
                                                                                                      disclosed to it by the other
                                                                                                      party.

 

		15.9	The
                                                                                                   termination or expiration of
                                                                                                   an individual Agreement will
                                                                                                   not have the effect of terminating
                                                                                                   any other Agreement or this
                                                                                                   GSA unless expressly agreed
                                                                                                   to by the parties in writing.
                                                                                                   If an Agreement (but not this
                                                                                                   GSA) terminates or expires,
                                                                                                   all rights and licences granted
                                                                                                   by Google to Company under
                                                                                                   that Agreement will cease immediately.
                                                                                                   Termination or expiration of
                                                                                                   all Agreements will result
                                                                                                   in the expiration of this GSA
                                                                                                   on the same date on which the
                                                                                                   last Agreement terminates or
                                                                                                   expires.

 

		16.	General

 

		16.1	All
                                                                                                   notices of termination or breach
                                                                                                   must be in English, in writing,
                                                                                                   addressed to the other party’s
                                                                                                   Legal Department and sent to
                                                                                                   Company’s postal address,
                                                                                                   fax number or email address
                                                                                                   identified for legal notices
                                                                                                   on the applicable Order Form
                                                                                                   or to [* * *] (as applicable)
                                                                                                   or such other address as either
                                                                                                   party has notified the other
                                                                                                   in accordance with this clause.
                                                                                                   All notices will be deemed
                                                                                                   to have been given on receipt
                                                                                                   as verified by written or automated
                                                                                                   receipt or electronic log (as
                                                                                                   applicable).

 

		16.2	All
                                                                                                   other notices must be in English,
                                                                                                   in writing (which for these
                                                                                                   purposes may include an email),
                                                                                                   addressed to the other party’s
                                                                                                   primary contact and sent to
                                                                                                   their then current postal address
                                                                                                   or email address.

 

		16.3	Neither
                                                                                                   party may assign any of its
                                                                                                   rights or obligations under
                                                                                                   this GSA or any Agreement without
                                                                                                   the prior written consent of
                                                                                                   the other. Where a party gives
                                                                                                   the other party such written
                                                                                                   consent: (a) the assignor shall
                                                                                                   ensure that the assignee has
                                                                                                   agreed in writing to be bound
                                                                                                   by the terms of this GSA and
                                                                                                   the applicable Agreement(s);
                                                                                                   and (b) the assignment takes
                                                                                                   effect from 23:59 on the last
                                                                                                   day of the relevant calendar
                                                                                                   month.

 

		16.4	[*
                                                            * *].

 

		16.5	Except
                                                                                                   as expressly stated otherwise,
                                                                                                   nothing in this GSA or any
                                                                                                   Agreement will create or confer
                                                                                                   any rights or other benefits
                                                                                                   in favour of any person other
                                                                                                   than the parties to this GSA.

 

		16.6	Except
                                                                                                   as expressly stated otherwise,
                                                                                                   nothing in this GSA or any
                                                                                                   Agreement will create an agency,
                                                                                                   partnership or joint venture
                                                                                                   of any kind between the parties.

 

		16.7	Neither
                                                                                                   party will be liable for failure
                                                                                                   to perform or delay in performing
                                                                                                   any obligation under this GSA
                                                                                                   or any Agreement if the failure
                                                                                                   or delay is caused by any circumstances
                                                                                                   beyond its reasonable control.

 

		16.8	[*
                                                                                                   * *].

 

		16.9	Failure
                                                                                                   or delay in exercising any
                                                                                                   right or remedy under this
                                                                                                   GSA or any Agreement will not
                                                                                                   constitute a waiver of such
                                                                                                   (or any other) right or remedy.

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
12

    	 

    

 

		16.10	The
                                                                                                    invalidity, illegality or
                                                                                                    unenforceability of any term
                                                                                                    (or part of a term) of this
                                                                                                    GSA or any Agreement will
                                                                                                    not affect the continuation
                                                                                                    in force of the remainder
                                                                                                    of the term (if any) and this
                                                                                                    GSA or applicable Agreement.

 

		16.11	Subject
                                                                                                    to clause 13.1(b), this GSA
                                                                                                    and the Order Forms entered
                                                                                                    into under it set out all
                                                                                                    terms agreed between the parties
                                                                                                    in relation to its subject
                                                                                                    matter and supersede all previous
                                                                                                    agreements between the parties
                                                                                                    relating to the same. In entering
                                                                                                    into this GSA and the related
                                                                                                    Order Forms neither party
                                                                                                    has relied on any statement,
                                                                                                    representation or warranty
                                                                                                    not expressly set out in this
                                                                                                    GSA or any Order Form.

 

		16.12	This
                                                                                                    GSA and any Agreements and
                                                                                                    any dispute (contractual or
                                                                                                    non-contractual) concerning
                                                                                                    this GSA and any Agreement(s)
                                                                                                    or their subject matter or
                                                                                                    formation (a “Dispute”)
                                                                                                    are governed by English law.

 

		16.13	Any
                                                                                                    Dispute shall be referred
                                                                                                    to and finally resolved by
                                                                                                    arbitration under the rules
                                                                                                    of the LCIA, which rules are
                                                                                                    deemed to be incorporated
                                                                                                    by reference into this clause.
                                                                                                    The number of arbitrators
                                                                                                    shall be three. The seat,
                                                                                                    or legal place, of arbitration
                                                                                                    shall be London, England.
                                                                                                    The language to be used in
                                                                                                    the arbitration shall be English.

 

		16.14	Clause
                                                                                                    16.12 shall be without prejudice
                                                                                                    to the right of either party
                                                                                                    to apply to any court of competent
                                                                                                    jurisdiction for emergency,
                                                                                                    interim or injunctive relief
                                                                                                    (together “Interim
                                                                                                    Relief”). Such Interim
                                                                                                    Relief shall be subject to
                                                                                                    review and subsequent adjudication
                                                                                                    by the arbitral tribunal such
                                                                                                    that any dispute in respect
                                                                                                    of Interim Relief shall be
                                                                                                    determined by the arbitral
                                                                                                    tribunal.

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
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Signed
by the parties on the dates shown below.

 

	Google	 	Company
	 	 	 
	By: [* * *]	 	By: [* * *]
	 	 	 
	Print Name: [* * *]	 	Print Name: [* * *]
	 	 	 
	Title: [* * *]	 	Title: [* * *]
	 	 	 
	Date:	  
    23 December 2010	 	Date:	   
    23.12.2010

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
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Exhibit
A

 

[*
* *]

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
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ATTACHMENT
1-A

 

[*
* *]

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
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ATTACHMENT
1-B

 

[*
* *]

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
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ATTACHMENT
1-C

 

[*
* *]

 

    	*** Confidential treatment has been requested for redacted portions of this exhibit. This copy omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been provided separately to the Securities and Exchange Commission.
 
18

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