Document:

Exhibit

Exhibit 10.3

TECHNOLOGY TRANSFER AGREEMENT
This Technology Transfer Agreement (“Agreement”) is entered into as of April 4, 2018 (“Effective Date”) between Realm Therapeutics, Inc., a Delaware corporation (“RTI”) and Vitold M. Bakhir (“Licensor”) and sets forth the terms and conditions that will apply to the transfer of certain technology and the grant of certain licenses from Licensor to RTI.
1.  License
1.1 License Grant. 
(a)  Subject to the terms of this Agreement, Licensor hereby grants to RTI and RTI hereby accepts, an exclusive, worldwide, perpetual, license, including the right to grant sublicenses in accordance with Section 1.1(c), under the Licensor Patent Rights and the Licensor Intellectual Property to make, have made, use, have used, offer for sale, sell, have sold and import Licensed Products in the Field.
“Field” means [*].
“Know-How” means discoveries, observations, inventions, know-how, trade secrets, techniques, methodologies, modifications, improvements, works of authorship, designs and data (whether or not protectable under patent, copyright, trade secrecy or other laws).
“Licensed Product(s)” means any product comprising or containing an [*] by the Licensor Patent Rights or makes use of any Licensor Intellectual Property (“Product”), including but not limited to the electrochemical cells described and claimed in US Patent [*] including any improvements or modifications thereto (whether or not patented), including but not limited to the Licensor’s certain Electrochemical [*].
“Licensor Intellectual Property” means Know-How, that is owned or controlled by Licensor or its Affiliates during the term of this Agreement and that is necessary or useful for the development, manufacture, use, sale, offering for sale or importing of the Licensed Products, including any tangible materials that are provided by Licensor to RTI. The term Licensor Intellectual Property does not include any Know-How, which is, as of the Effective Date or later becomes, generally available to the public.
“Licensor Patent Rights” means those patents, patent applications, divisionals, continuations, continuations-in-part, reissues, extensions, supplementary protection certificates and foreign counterparts thereof that are controlled by Licensor at any time during the term of this Agreement and that are necessary or useful for the manufacture, use, sale, offer to sell, lease, or importation of Licensed products in the Field, including but not limited to U.S. Patent No. [*] and any continuations, continuations-in-part, divisions, reissues, examinations or extensions of such patent and all foreign counterparts of such patent. 
(b)  Parties acknowledge that Licensor sells Products to third parties for use outside the Field. In order to give effect to the exclusive license granted herein, Licensor covenants that he will not sell, license, or lease Products to any third party for use in any geography (worldwide) in the Field. In order to satisfy this covenant, Licensor will make inquiries of those third parties placing an order for Product and inform third parties that any contract for sale, license, or lease of Product is predicated on use of the Product outside the Field. Licensor will use commercially reasonable efforts to ensure he obtains factually accurate replies to the inquiries and to otherwise enforce this provision.  
(c)  The right of RTI to grant sublicenses under Section 1.1(a) is subject to the requirement that each such sublicense shall be in writing and shall include provisions (i) acknowledging that such sublicense is subject to the applicable license(s) granted hereunder, (ii) requiring each sublicensee to perform all applicable obligations of RTI hereunder in the applicable portion of the Territory.  RTI shall at all times remain responsible for the performance of any of its sublicensees.  

Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

(d)  The license granted under this Section 1.1 shall be treated as a license of rights to “intellectual property” (as defined in Section 101(56) of Title 11 of the United States Code, as amended (the “Bankruptcy Code”)) for purposes of Section 365(n) of the Bankruptcy Code.  The parties agree that RTI may elect to retain and may fully exercise all of its rights and elections under the Bankruptcy Code provided, that it abides by the terms of this Agreement.
1.2  Patent Matters.  
(a)  RTI shall be responsible for payment of maintenance fees for US Patent [*] that become due after the Effective Date.  
(b)  If either party learns of any actual or threatened infringement or misappropriation or any attack on the validity or enforceability by a third party with respect to Licensor Patent Rights and the Licensor Intellectual Property in the Field, such party shall promptly notify the other party and shall provide such other party with available evidence of such events.
(c)  RTI shall have the first option to pursue any enforcement or defense of Licensor Patent Rights and the Licensor Intellectual Property against infringement or misappropriation, including defense against a declaratory judgment action alleging invalidity or non-infringement of any of the Licensor Patent Rights and the Licensor Intellectual Property in the Field; provided, that RTI pays all costs and expenses related to the same, keeps Licensor reasonably informed of its progress and provides Licensor with copies of any substantive documents related to such proceedings and reasonable notice of all such proceedings. RTI shall notify Licensor of its decision to exercise its right to enforce or defend Licensor Patent Rights or Licensor Intellectual Property not later than [*] following its discovery or receipt of notice of the alleged infringement or misappropriation. 
(d)  If (i) RTI notifies Licensor that it will not enforce Licensor Patent Rights and the Licensor Intellectual Property in accordance with Section 1.2(c); (ii) RTI has exhausted all legal appeals with respect to causing the alleged infringement or misappropriation to cease or causing the person alleging the infringement or misappropriation to forebear, (iii) RTI fails to bring an infringement or misappropriation action within [*] following its discovery or receipt of notice of the alleged infringement or misappropriation or (iv) RTI is not diligently pursuing an infringement or misappropriation action or diligently defending the validity or enforceability of Licensor Patent Rights and the Licensor Intellectual Property at issue, then Licensor shall have the right to pursue the alleged infringer or party responsible for the alleged misappropriation or take control of any action initiated by, or being defended by, RTI at Licensor’s own expense. Notwithstanding the foregoing, if RTI has not initiated an infringement or misappropriation action as described under (iii) above, or ceased to pursue such action, on the advice of outside patent counsel, then Licensor agrees not to initiate such an action without RTI’s prior consent not to be unreasonably withheld or delayed (with the determination of reasonableness taking into account the costs of such litigation, its likelihood for success, the potential damages or settlement recovery, and the potential for exposure to counterclaims and defenses against RTI with respect to any RTI Patent Rights with respect to the applicable Licensed Product). In any such case, RTI will, wherever possible under applicable law, substitute Licensor as party plaintiff for purposes of pursuing any alleged infringer or party responsible for the alleged misappropriation, or as defendant for defending any Licensor Patent Rights or Licensor Intellectual Property.  
(e)  Any recovery of damages or other sums recovered in a proceeding or action with regard to Licensor Patent Rights and the Licensor Intellectual Property Rights handled by a party pursuant to Section 1.2(c) or Section 1.2(d) shall be applied first in satisfaction of any unreimbursed expenses and legal fees of the party bringing or defending the proceeding or action (the “Acting Party”) and next, if applicable, in satisfaction of the costs and expenses incurred by the other party in connection therewith, including reasonable attorneys’ fees involved in the prosecution and/or defense of any proceeding or action and, if after such reimbursement 

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

any funds shall remain from such damages or other sums recovered, the remaining recovery shall be retained one hundred percent (100%) by the Acting Party. No settlement, consent judgment or other voluntary final disposition of any suit regarding Licensor Patent Rights and the Licensor Intellectual Property may be entered into without the consent of the other party, which consent shall not be unreasonably withheld.
(f)  In any infringement or misappropriation suit that either party may institute to enforce Licensor Patent Rights and the Licensor Intellectual Property, or in any declaratory judgment action alleging invalidity, non‐infringement or non-misappropriation of any Licensor Patent Rights and the Licensor Intellectual Property brought against Licensor or RTI, the other party shall, at the request and expense of the party initiating or defending the suit or action, cooperate and assist in all reasonable respects, having its employees testify when requested and making available relevant records, papers, information, specimens and the like. In addition, upon the reasonable request of the party instituting an action under this Section 1.2, or if required by applicable law, the other party shall join such action and shall be represented using counsel of its own choice, at the requesting party’s expense; provided, that if RTI does not initiate an action hereunder on the advice of outside patent counsel, then Licensor may not require RTI to join such action but Licensor may have RTI join such action as an involuntary party, but RTI shall not be required to participate in such action. 
2.  Technology Transfer
2.1  Technology Transfer.  Licensor shall take the following actions to provide RTI with all information and data necessary or useful to enable RTI to practice the Licensor Patent Rights and the Licensor Intellectual Property for purposes of making, having made, using, have used, offering for sale, selling, having sold and importing Licensed Products in the Field.
2.2  Schedule for Transfer of Technology. 
(a)  In accordance with the schedule set forth below, Licensor shall take the following actions to provide RTI or its designees with all information that is necessary or useful to enable RTI and its designees to manufacture Licensed Products conforming with the applicable specifications (and any enhancements, modifications, upgrades, corrections, and components to the Licensed Products developed during the term of this Agreement), including any drawings, manufacturing instructions, testing equipment vendors (and detailed modification notes for any modifications made to such testing equipment for purposes of testing the Products), equipment settings, supply chain information, costed bills of materials, testing procedures, or other information as well as any manuals, programmers notes, and other materials needed to access and use such materials.
(b)  Licensor will provide all Know-How and instructions, including knowledge, documentation, contacts, and support necessary to enable successful manufacture of Licensed Products by RTI and RTI’s designees.
(c)  Licensor and/or Licensor’s employees or agents will be available, on a reasonable basis (at no further cost to RTI), for questions and trouble-shooting support to effect the successful transfer of the technology described in Sections 2.1-2.2(a), including but not limited to: [*].
3.  Charges
3.1  License Fee.  RTI shall pay Licensor [*] in consideration for the patent license granted under Section 1.1 within [*] following the Effective Date and delivery of Licensor's invoice. 
3.2  Tech Transfer Fee.  RTI shall pay Licensor the following payments in consideration of each of the following deliverables covering the transfer of technology and know-how concerning the Licensor’s technology, within [*] following the achievement of each of the following events and delivery of Licensor’s invoice:

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

(i)  upon delivery of draft documentation (for technology transfer in accordance with Section 2.2(c)(i)-(v)) for review/comment by RTI, such delivery to occur within [*] after the effective date, RTI will pay Licensor [*].
(ii) upon RTI’s final approval of the documentation relating to Sections 2.2(c)(i)-(v) such documentation to be delivered within [*] after the effective date, RTI shall pay Licensor [*].
(iii) upon completion by Licensor of an on-site presentation and training at the RTI facility [*].
(iv) upon delivery by Licensor to RTI of an annual update of improvements or modifications (if any), including of sourced parts, by December 15 each year (or earlier if available), RTI shall pay Licensor [*] (in those years in which improvements or modifications are made and an update is provided). This payment obligation will commence in 2019. 
3.3  Restrictions within Field. In consideration for Licensor’s obligations under Section 1.1(b), RTI will pay Licensor [*] annually by December 31 of each year. This payment obligation will commence in 2019.
3.4  Remittance.  All payments shall be made in U.S. Dollars. All invoices provided to RTI hereunder should include Licensor’s bank details and Licensor’s contact name for issue resolution and be sent to RTI at the notice address set forth below.
4.  Confidentiality
4.1  Confidential Information.  “Confidential Information” means all data, specifications, information and data provided by Licensor to RTI pursuant to this Agreement except any portion thereof which: (i) is known to RTI, as evidenced by RTI's written records, before receipt thereof pursuant to this Agreement; (ii) is disclosed to RTI by a third person who is under no obligation of confidentiality to Licensor with respect to such information and who otherwise has a right to make such disclosure; (iii) is or becomes generally known in the trade through no fault of RTI; or (iv) is independently developed by RTI, as evidenced by RTI's written records, without access to Licensor Confidential Information. It is understood that in the event a portion or aspect of Confidential Information becomes generally known, only that portion or aspect shall not be governed by this Agreement and that all other aspects of such Confidential Information shall remain subject to the provisions of this Agreement. 
4.2  Permitted Use.  Confidential Information will be used by RTI or its licenees solely for the purposes permitted by this Agreement. All Confidential Information will be received and held in confidence by RTI or its licensees, subject to the provisions of this Agreement. RTI acknowledges that it will not obtain any rights of any sort in or to the Confidential Information as a result of disclosure pursuant to this Agreement and that any such rights must be the subject of separate written agreement(s).
4.3  Non-Disclosure.  RTI will restrict disclosure of Confidential Information to those of its employees to whom it is necessary to disclose such Confidential Information in connection with the purposes permitted under Section 4.2. RTI shall use its best efforts, including at least efforts fully commensurate with those employed by RTI for the protection of its own confidential information, to protect the Confidential Information.  
5.  Term; Termination
5.1  Term.  This Agreement shall take effect as of the Effective Date and shall remain in effect until the expiration of the last to expire Licensor Patent Right, unless sooner terminated in accordance with Section 5.2. Thereafter, RTI shall have a fully paid-up, royalty-free, perpetual non-exclusive license to Licensor Patent Rights and Licensor Intellectual Property to make, have made, use, import, promote, distribute, sell, offer for sale and otherwise exploit the Licensed Products within the Field.

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

5.2  Termination. 
(a)  Either party may terminate this Agreement with [*] notice if the other party commits a material breach unless the breach is cured within the [*] notice period.
(b)  RTI shall have the right to terminate this Agreement in its entirety at any time after the Effective Date by providing [*] prior written notice to Licensor. 
(c)  The parties may terminate this Agreement, at any time upon mutual written agreement of the parties.  
5.3  Effect of Termination.  
(a)  If termination is made by Licensor pursuant to Section 5.2(a) or by RTI pursuant to Section 5.2(b), the parties will terminate all tasks then in process in an orderly manner, as soon as practical and in accordance with a schedule agreed to by RTI and Licensor.
(b)  Except as otherwise provided herein, neither party shall be liable to the other party for any compensation or damages by reason of termination of this Agreement in accordance with this Section 5.3.
(c)  Nothing herein shall be construed to release either party of any obligation which matured prior to the effective date of any termination. Either party’s liability for any uncontested charges, payments or expenses due to the other party that accrued prior to the termination date shall not be extinguished by termination, and such amounts (if not otherwise due on an earlier date) shall be immediately due and payable on the termination date.  
5.4  Survival.  Sections 4, 5, 7.2-7.10 shall survive any termination or expiration of this Agreement.
6.  Representations and Warranties; Covenants
6.1  Authorization, etc.  Each party hereby represents and warrants to the other that: (i) it has all requisite power and authority to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; (ii) this Agreement has been duly authorized, executed and delivered by such party, constitutes the legal, valid and binding obligation of such party and is enforceable against such party in accordance with its terms; (iii) it shall not disclose to the other party any proprietary confidential information of any third  party.
6.2  Additional Representations of Licensor.  
(a)  Licensor has no knowledge that any issued patents that are part of Licensor Patent Rights are invalid or unenforceable.
(b)  Licensor has no knowledge of any claims, judgments or settlements against Licensor pending, or threatened, that invalidate or seek to invalidate the Licensor Patent Rights.  Licensor has no knowledge of any pending litigation against Licensor or any Affiliate of Licensor or any licensor of Licensor that alleges that any of Licensor’s activities have violated or Licensed Products would violate, any of the intellectual property rights of any third party (nor has it received any written communication threatening such litigation).
(c)  Licensor has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in the Licensor Patent Rights or the Licensor Intellectual Property in a manner inconsistent with the terms hereof. There is no agreement to which Licensor is a party and by which it is bound that would conflict with or be breached by Licensor granting RTI the licenses in Section 1.1(a).

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

(d)  Licensor is the sole and exclusive owner of the Licensor Patent Rights and the Licensor Intellectual Property and no other Person has any claim of ownership with respect to such Licensor Patent Rights and Licensor Intellectual Property. Licensor has the right to grant the license granted to RTI under Section 1.1 on the terms set forth herein, and such license does not conflict with the terms of any of the existing licenses to which Licensor is a party. 
(e)  Licensor has obtained the assignment of all interests and all rights of any and all third parties (including employees) involved in the creation of the Licensor Patent Rights and the Licensor Intellectual Property.
(f)  Licensor has no knowledge of any use, infringement or misappropriation of the Licensor Patent Rights or the Licensor Intellectual Property in derogation of the rights granted to RTI in this Agreement.
6.3  Disclaimer. (a) EXCEPT FOR THE WARRANTIES EXPRESSLY MADE IN SECTIONS 6.1-6.2, NEITHER PARTY MAKES ANY OTHER REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED (WHETHER WRITTEN OR ORAL), INCLUDING ANY WARRANTY OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES, IN ALL CASES WITH RESPECT THERETO. 
(b)  THE REPRESENTATIONS AND WARRANTIES OF EACH OF LICENSOR AND RTI EXTEND ONLY TO THE OTHER PARTY. NEITHER PARTY WILL BE LIABLE FOR ANY CLAIM OR DEMAND AGAINST SUCH OTHER PARTY BY A THIRD PARTY.
6.5  Limitation of Liability.  (a) IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR SIMILAR DAMAGES OF ANY KIND, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT. THESE LIMITATIONS SHALL APPLY REGARDLESS OF WHETHER LIABILITY ARISES FROM A CLAIM BASED UPON CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR ANY OTHER THEORY OF LIABILITY.  
(b)  NEITHER PARTY'S LIABILITY FOR DIRECT DAMAGES SHALL EXCEED THE AGGREGATE FEES PAID BY RTI PURSUANT TO THIS AGREEMENT AT THE TIME THE CLAIM ARISES.
7.  General
7.1  Independent Contractors.  For the purpose of this Agreement, the parties shall be, and shall be deemed to be, independent contractors and not agents or employees of the other parties.  Neither party shall have the authority to make any statements, representations or commitments or to take any actions which shall be binding on the other party, except as may be explicitly authorized in writing.  Licensor (or its subcontractors) shall be solely responsible for compensating all its personnel and for payment of all related FICA, workers' compensation, unemployment and withholding taxes.  RTI shall not provide Licensor (or Licensor’s subcontractor’s) personnel with any benefits, including but not limited to compensation for insurance premiums, paid sick leave or retirement benefits. 
7.2  Assignment.  This Agreement will be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Neither party may assign this Agreement or any of its rights and obligations under this Agreement without the prior written consent of the other party; provided, that either party may assign this Agreement to (a) any Person to which such party transfers all or substantially all of its assets to which this Agreement relates or with which such party is consolidated or merged; (b) any Person that owns a majority of the voting stock of such party; or (c) an Affiliate of the assigning party; provided, further, that in each instance the assignee expressly assumes all obligations imposed on the assigning party by this Agreement in writing and  the other party is notified in advance of such assignment. 

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
“Affiliate” means with respect to either party, any Person that, directly or indirectly, is controlled by, controls or is under common control with such party.  For purposes of this definition only, “control” means, with respect to any Person, the direct or indirect ownership of more than fifty percent (50%) of the voting or income interest in such Person (or such lesser maximum percentage permitted in those jurisdictions where majority ownership by foreign entities is prohibited) or the possession otherwise, directly or indirectly, of the power to direct the management or policies of such Person.
“Person” means any individual, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability company, limited liability partnership, unincorporated organization, government (or any agency or political subdivision thereof) or other legal entity or organization, other than Licensor or RTI.
7.3  Notices.  Any notice or communication required or permitted to be given under this Agreement shall be in writing and shall be deemed given when delivered by hand or delivered to an internationally recognized overnight courier service (such courier notice to be effective on the date which is two (2) business days after the date of mailing), or sent by .pdf email or telefax (such notice sent by .pdf email or telefax to be effective one (1) business day after sending, if confirmed by overnight courier as aforesaid), in each case properly addressed to the address indicated below, or at such other addresses as may be furnished in writing by either party in accordance with this Section 7.3. 
7.4  Applicable Law.  This Agreement shall be governed by, subject to, and construed in accordance with the substantive laws of Pennsylvania without regard for any choice or conflict of laws rule or provision that would result in the application of the substantive law of any other jurisdiction. 
7.5  Waivers.  The waiver by either party of a breach or default under any provision under this Agreement or the failure of such party to exercise its rights under this Agreement in any instance shall not operate or be construed as a continuing waiver or a  waiver of any subsequent breach or default  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar). 
7.6  Integration.  This Agreement states the entire agreement of the parties with respect to its subject matter and supersedes all prior agreements, understandings, negotiations, representations, and proposals, whether written or oral, relating to its subject matter.  No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the party adversely effected by such writing.
7.7  Severability.  In the event that any one or  more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement and such invalid or unenforceable provision shall be construed by limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law.
7.8  Binding Effect, Benefits.  This Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns; nothing in this Agreement, expressed or implied, is intended to confer on any person or entity other than the parties hereto or, as applicable, their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

7.9  Headings.  The Section headings are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement
7.10 Defined Terms.  Capitalized terms used in this Agreement and not defined in this Agreement are used with the meanings ascribed in the License Agreement.  The following terms shall have the meanings set forth in the section appearing opposite such term:
	
		
	“Acting Party”
	Section 1.2

	“Affiliate”
	Section 7.2

	“Agreement”
	Recitals

	“Confidential Information”
	Section 4.1

	“Effective Date”
	Recitals

	“Field”
	Section 1.1

	“Know-How”
	Section 1.1

	“Licensed Product(s)”
	Section 1.1

	“Licensor”
	Recitals

	“Licensor Intellectual Property”
	Section 1.1

	“Licensor Patent Rights”
	Section 1.1

	“Person”
	Section 7.2

	“RTI”
	Recitals

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

IN WITNESS WHEREOF the parties have caused this Agreement to be executed on their behalf by their duly authorized representatives as of the Effective Date.
	
			
	VITOLD M. BAKHIR
	 
	REALM THERAPEUTICS, INC.

	 
	 
	 

	 
	 
	 

	/s/ Vitold M. Bakhir
	 
	By: /s/ Marella Thorell    

	 
	 
	Marella Thorell

	 
	 
	Authorized Signatory

	 
	 
	 

	Notice Address:
	 
	Notice Address:

	Vitold M. Bakhir
	 
	Realm Therapeutics, Inc.

	________________
	 
	267 Great Valley Parkway

	_________, __ _____
	 
	Malvern, PA 19355

	Phone:___.___.____
	 
	Phone:    ___.___.____

	Fax:___.___.____
	 
	Fax:    ___.___.____

	Email:_________@____.com
	 
	Email: _________@____.com

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.Exhibit

Exhibit 10.4
EXECUTION VERSION

INTELLECTUAL PROPERTY LICENSE AGREEMENT
This Intellectual Property License Agreement (“this Agreement”) is effective as of October 7, 2016 (“Effective Date”), and is made by and between PuriCore, Inc., a Delaware corporation (“LICENSOR”), and Chemstar Corp., a Florida corporation (“LICENSEE”).
ARTICLE 1.    BACKGROUND
1.01    LICENSOR and LICENSEE are parties to an Asset Purchase Agreement, dated as of September 19, 2016 (the “Asset Purchase Agreement”), among Licensor, Licensee and PuriCore plc, a public limited company organized under the laws of England and Wales, which has a Closing Date on the same date as the Effective Date, pursuant to which LICENSEE is purchasing certain of LICENSOR’S assets relating to the Business.
1.02    In connection with the Asset Purchase Agreement and LICENSEE’S acquisition of the Business, LICENSOR desires to grant to LICENSEE, and LICENSEE wishes to receive, a license to certain intellectual property rights owned or controlled by LICENSOR.
ARTICLE 2.   DEFINITIONS
In this Agreement, unless indicated otherwise below, capitalized terms have the meaning set forth in the Asset Purchase Agreement. For purposes of this Agreement:
2.01    “Confidential Information” means information relating to the Contemplated Business which has not been made public and includes, without limitation, any documents, protocols, drawings, sketches, models, designs, data, memoranda, records, formulae and algorithms in hard copy form, or in electronic form, which LICENSEE receives from LICENSOR.
2.02    “Licensed Intellectual Property” means, collectively, the Licensed Patent Rights, Licensed Know-How, and the [*] License.
2.03    “Licensed Field” means the Business and Contemplated Business as defined in the Asset Purchase Agreement.
2.04    “Licensed Patent Rights” means LICENSOR’S interest in patents and patent applications within Seller-Owned Intellectual Property which are not Seller-Owned Intellectual Property acquired by LICENSEE pursuant to the Asset Purchase Agreement, and which have at least one claim related to the Licensed Field, as further itemized in Exhibit A, including (i) patents and patent applications that may issue from the applications, (ii) all continuations, continuations-in-part, divisions, reissues, reexaminations or extensions of the foregoing that include at least one claim relating to the Licensed Field, (iii) new applications containing at least one claim relating to the Licensed Field, and (iv) foreign counterparts containing at least one claim relating to the Licensed Field. For the avoidance of doubt, a patent or application is related to the Licensed Field when it includes at least one claim that would be infringed by activities within the Licensed Field absent this Agreement.
2.05    “Licensed Know-How” means [*].
2.06    “[*] License” means LICENSOR’S interest in US Patent [*] (the “[*] Patent”), by virtue of the [*] License Agreement.

Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

2.07    “[*] License Agreement” means that certain Exclusive Patent License Agreement by and between PuriCore, Inc. and [*], dated October 1, 2014, and as amended on June 22, 2016, and as further amended on September 1, 2016.
2.08    “Excluded Patents” means patents and applications that are neither acquired by nor licensed to LICENSEE pursuant to this Agreement and the Asset Purchase Agreement. Excluded Patents are not Licensed Intellectual Property, and Excluded Patents includes the patents itemized in Exhibit C.
ARTICLE 3.   GRANT OF LICENSE
3.01    LICENSOR hereby grants to LICENSEE, and LICENSEE accepts, an exclusive worldwide, royalty free, irrevocable, license, under the Licensed Patent Rights and Licensed Know-How, to make, have made, use, lease, market, promote, offer to sell, sell and import products solely for use within the Licensed Field. LICENSEE may grant sublicenses, and its sublicensees may grant sublicenses, under this Section 3.01 upon prior written notice to LICENSOR and the sublicensees acknowledgement of the terms of this Agreement.
3.02    LICENSOR hereby grants to LICENSEE, and LICENSEE accepts, an exclusive, worldwide, royalty free, sublicense under the [*] License, to make, have made, use, lease, market, promote, offer to sell, sell and import products solely for use within the Licensed Field. The license granted in this Section 3.02 shall be irrevocable by LICENSOR, but subject to the rights of the licensor under the [*] License Agreement to terminate the [*] License Agreement in accordance with its terms. Notwithstanding anything to the contrary, LICENSOR shall take no action to terminate the [*] License Agreement pursuant to Article III thereof, nor shall it knowingly take any action or fail to take any necessary action which act or failure to act would give rise to a right of the licensor under the [*] License Agreement to terminate the [*] License Agreement pursuant to the terms of Article III thereof. In the event LICENSOR receives notice under the [*] License Agreement alleging a material breach or default of any of LICENSOR’s obligations thereunder, LICENSOR shall promptly, and in no event later than 3 days thereafter, give written notice thereof to LICENSEE. LICENSEE agrees to be bound by Articles IV and VI of the [*] License Agreement, and by signature hereto agrees to use commercially reasonable efforts to practice the invention disclosed and claimed in US Patent [*] to maintain the sublicense. LICENSEE may grant sublicenses, and its sublicensees may grant sublicenses, under this Section 3.02 upon prior written notice to LICENSOR and to [*] (at the address indicated in the [*] License) and the sublicensees acknowledgement of the terms of this Agreement and agreement to be bound by Article IV and VI of the [*] License Agreement and Article 4 of this Agreement to the same extent as LICENSEE.
3.03    The licenses granted in this Article 3 are exclusive even as to LICENSOR, meaning that LICENSOR shall not itself practice the Licensed Intellectual Property in the Licensed Field.
ARTICLE 4.   CONFIDENTIALITY

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

4.01    LICENSEE acknowledges the proprietary and confidential nature of the Licensed Know-How, and agrees that such Licensed Know-How shall be Confidential Information and subject to the following restrictions on disclosure.
4.02    Except as hereafter specifically authorized in writing by LICENSOR, LICENSEE will not disclose Confidential Information to a third party. These obligations of non-disclosure do not apply to any Confidential Information which LICENSEE can demonstrate by reliable written evidence:
(a)    was generally available to the public at the time of disclosure to LICENSEE; or
(b)    was already in the possession of LICENSEE at the time of the disclosure, other than pursuant to a confidential disclosure agreement between the parties and not due to any unauthorized act by LICENSEE; or
(c)    was developed by LICENSEE prior to the disclosure; or
(d)    LICENSEE is required by law to disclose.
4.03    These obligations of non-disclosure will not continue to apply to any Confidential Information which LICENSEE can demonstrate by reliable written evidence:
(a)    has become generally available to the public other than through a breach of this agreement by LICENSEE after disclosure; or
(b)    has been acquired by LICENSEE on a non-confidential basis from any third party having a lawful right to disclose it to LICENSEE.
4.04    All Confidential Information will be clearly marked as confidential by LICENSOR and, if not in written or tangible form when disclosed, will be indicated as confidential upon disclosure and then summarized in writing and so marked as confidential within 30 days after disclosure to LICENSEE.
ARTICLE 5.   PATENT PROSECUTION
5.01    LICENSOR, at LICENSOR’S expense shall file, prosecute and maintain all patents and patent applications within the Licensed Patent Rights. LICENSOR shall have control over all patent matters; provided, however, that if LICENSOR elects to abandon any patent application (except for purposes of filing a continuation application) or patent in any country, LICENSOR shall notify LICENSEE in writing at least [*] prior to any filing or payment due date or any other deadline that requires action to avoid loss of rights, and thereafter, LICENSEE shall have the right to control the filing, prosecution, and/or maintenance of such patent application or patent in such country at its own expense, and for its own benefit within the Licensed Field.
ARTICLE 6.   INFRINGEMENT
6.01    LICENSOR and LICENSEE agree to notify each other promptly of each infringement or possible infringement of the Licensed Intellectual Property within the Licensed Field of which either party becomes aware.
6.02    LICENSOR shall have the first right to prosecute any action necessary to protect rights under the Licensed Intellectual Property. In the event that LICENSOR, or with respect to the [*] License the licensor thereunder, declines or does not, within six (6) months after being notified in writing by 

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

LICENSEE of any such infringement, commence legal action or terminate the infringement, LICENSEE shall have the right, but not the obligation, to commence any legal action or to take such steps as LICENSEE may deem desirable to terminate such infringement at its own expense (but subject to any rights to reimbursement from the licensor under the [*] License). LICENSOR shall cooperate with any such legal action, including by providing prompt access to all necessary documents and rendering reasonable assistance in response to requests by LICENSEE, and, if applicable, by exercising its rights under the [*] License as necessary for any such legal action relating thereto. LICENSEE may require LICENSOR to initiate or join in any suit contemplated by this Section 6.02 if necessary to avoid dismissal of the suit. If LICENSOR is made a party to any such suit, LICENSEE will reimburse and indemnify LICENSOR for its costs, expenses, or fees which it incurs as a result of its joinder. In all cases, LICENSEE agrees to keep LICENSOR reasonably apprised of the status and progress of any litigation involved the Licensed Intellectual Property. In furtherance of LICENSEE’S rights under this Section 6.02, and without limiting the foregoing, LICENSOR hereby assigns to LICENSEE LICENSOR’S rights under Article V of the [*] License (including, without limitation, its rights to reimbursement from the licensor) as and to the extent necessary or desirable for LICENSEE to exercise its rights under this Section 6.02.
6.03    LICENSEE may, in any legal action for infringement of the Licensed Intellectual Property by a third party, ultimately enjoin infringement and collect for its use, damages, profits, and awards of whatever nature recoverable for such infringement; and settle any claim or suit for damages or a declaratory judgment involving the Licensed Intellectual Property, including the granting of further licenses or sublicenses, provided that LICENSEE does not concede invalidation of any Licensed Intellectual Property, without LICENSOR’S prior written consent.
6.04    LICENSOR has a continuing right to intervene in a suit initiated by LICENSEE under Section 6.02 or in a declaratory judgment action involving the Licensed Intellectual Property brought against LICENSEE. If LICENSOR chooses to intervene, LICENSOR will be responsible for its litigation expenses and will be entitled to all recoveries which it obtains for itself as a result of its intervention.
ARTICLE 7.   LICENSOR’S REPRESENTATIONS AND WARRANTIES
7.01    LICENSOR represents and warrants that: (a) it is the sole and exclusive legal and beneficial owner, and has sole and exclusive control, of the entire right, title and interest in and to the Licensed Intellectual Property, and is the record owner of all patent applications and issued patents that are the Licensed Patent Rights constituting Seller-Owned Intellectual Property; (b) it has not previously granted any licenses, agreements or other permissions to any third party with respect to the Licensed Intellectual Property which would interfere with LICENSEE’s use and enjoyment of the rights granted under this Agreement; (c) the Licensed Intellectual Property is free and clear of any and all encumbrances, liens, or title defects; (d) there is no pending or threatened litigation against LICENSOR in connection with the Licensed Intellectual Property; and (e) the performance by LICENSOR hereunder does not and will not violate any contracts or commitments to which LICENSOR is bound.
ARTICLE 8.   TERM AND TERMINATION
8.01    This Agreement will continue in full force and effect until the last to expire of the Licensed Patent Rights.
ARTICLE 9.   MODIFICATION / ASSIGNABILITY
9.01    This License Agreement may be amended, supplemented, or modified by the terms of the Asset Purchase Agreement, but may not otherwise be amended, supplemented or modified except in a written instrument duly executed by each of the parties hereto.

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

9.02    This License Agreement may be assigned in whole or in part by either party and their permitted assignees without the consent of the other party, provided the assigning party gives written notice thereof to such other party, and with regard to assignment of the [*] License in whole or in part, such notice to include notice to [*] in accordance with the terms of the [*] License, along with a written acknowledgement from the assignee that it shall be bound by the terms of this Agreement and the [*] License to the same extent as the assigning party.
ARTICLE 10.   APPLICABLE LAW; JURISDICTION
10.01    This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflicts of laws rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the substantive laws of any jurisdiction other than the State of Delaware, except that all questions concerning the construction or effect of patents will be decided in accordance with the laws of the country in which the particular patent concerned has been granted.
10.02    Each party hereto irrevocably submits to the exclusive jurisdiction of the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (unless the Delaware Court of Chancery shall decline to accept jurisdiction over a particular matter, in which case, in any Delaware state or federal court within the State of Delaware), for the purposes of any action arising out of this Agreement or any transaction contemplated hereby or thereby, and agrees to commence any such action only in such courts. Each party further agrees that service of any process, summons, notice or document by registered mail to such party’s respective address set forth in the Asset Purchase Agreement shall be effective service of process for any such action. Each party hereto irrevocably and unconditionally waives any objection to the laying of venue of any action arising out of this Agreement or the transactions contemplated hereby in such courts, and hereby irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action brought in any such court has been brought in an inconvenient forum. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF.
ARTICLE 11.   MISCELLANEOUS
11.01    No license or right is granted by implication or otherwise with respect to any patent application or patent owned by either party, unless specifically set forth in this Agreement.
11.02    Any term or provision of this Agreement may be waived at any time by the party entitled to the benefit thereof by a written instrument duly executed by such party. Neither the failure nor the delay by any party hereto in exercising any right, power, or privilege hereunder shall operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege shall preclude any other or further exercise of any such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable law, (a) no waiver that may be given by a party hereto shall be applicable except in the specific instance for which it was given and (b) no notice to or demand on one party hereto shall be deemed to be a waiver of any obligation of such party or the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement.
11.03    If any provision of this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

provision hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.
11.04    This Agreement shall be binding upon, inure to the benefit of and be enforceable by the respective successors and permitted assigns of the parties hereto.
11.05    All notices hereunder shall be given in the manner and at the addresses set forth in the Asset Purchase Agreement.
11.06    This Agreement may be executed in two or more counterparts (delivery of which may occur via facsimile or email), each of which shall be binding as of the date first written above, and, when delivered, all of which shall constitute one and the same instrument. A facsimile signature or electronically scanned copy of a signature shall constitute and shall be deemed to be sufficient evidence of a party’s execution of this Agreement, without necessity of further proof. Each such copy (or facsimile) shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.

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Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

The parties have caused this Agreement to be executed by their duly authorized representatives on the dates indicated below.
	
		
	LICENSEE:

	 
	 

	PURICORE, INC.

	 
	 

	By:
	/s/ Marella Thorell

	Name:
	Marella Thorell

	Title:
	Chief Operating Officer and Chief Financial Officer

	
		
	LICENSOR:

	 
	 

	CHEMSTAR CORP.

	 
	 

	By:
	/s/ Dan Barney

	Name:
	Dan Barney

	Title:
	Chief Executive Officer

[Signature Page to IP License Agreement]
Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

EXHIBIT A
Licensed Patent Rights
[*]

Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

EXHIBIT B
Licensed Know-How
[*]

Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

EXHIBIT C
Excluded Patents
[*]

Certain portions of this exhibit denoted by [*] have been redacted pursuant to a request for confidential treatment that the registrant has filed with the SEC.

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