Document:

License Agreement dated March 16, 2000  with Shui Lai

 EXHIBIT 10.18 
  
 Confidential Materials omitted and filed separately with the Securities and Exchange Commission. Asterisks denote such
omissions. 
  
 LICENSE AGREEMENT 
  
 This License Agreement (“Agreement”), effective as of March 16,
2000 (the “Effective Date”), is entered into by and between Shui Lai (“Licensor”), and IntraLase Corp., a Delaware corporation (“IntraLase”). 
  
 WHEREAS: 
  
 Licensor is the sole owner of the “Patent Rights” (as defined below), and has the right to make the grant of rights to IntraLase contemplated
herein and otherwise perform its obligations hereunder; and 
  
 IntraLase is interested in obtaining a sole and exclusive, world-wide license from Licensor under the Patent Rights and Licensor is willing to grant such a license; and 
  
 IntraLase and Licensor are parties to the License (as defined below), and wish to coordinate IntraLase’s payment
obligations pursuant to the License with its obligations pursuant to this Agreement. 
  
 THEREFORE, in consideration of the promises and covenants contained below and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows: 
  
 I. DEFINITIONS 
  
 As used herein, the following terms shall have the meanings specified. 
  
 1.01 “Field of Use” shall mean use for ophthalmic surgery.

  
 1.02 “License” shall mean that certain
agreement between IntraLase and Licensor dated November 9, 1999, which in turn replaced a certain License Agreement between IntraLase and Novatec Laser Systems, Inc. and a certain Option Agreement between Licensor and IntraLase, both dated as of
February 24, 1999. 
  
 1.03 “Licensed Products”
shall mean any product for ophthalmic surgery which, in the absence of the license to IntraLase provided in this Agreement, would, directly or by contributory infringement, infringe on one or more claims in the Patent Rights. 
  
 1.04 “Net Sales” shall mean the invoiced amount for the
worldwide sale or lease of Licensed Products by IntraLase or any sub-licensee of IntraLase, less normal and customary cash and trade discounts and rebates actually given, sales commissions to overseas distributors, freight costs, custom duties and
other governmental charges actually incurred in connection with the exportation or importation of the Licensed Products, sales, value-added and other direct taxes. Any income taxes payable by IntraLase or its sub-licensees shall not be a permissible
deduction from revenues on Licensed Products for the purpose of calculating Net Sales. 
  
 1.05 “Patent Rights” shall mean U.S. Patent Nos. 5,549,632 and 5,984,916 and all divisions, continuations, continuations-in-part, reissues and re-examinations thereof now or hereafter owned or
controlled by Licensor, and all foreign counterparts thereof, throughout the world. Notwithstanding the foregoing, the “Patent Rights” shall not include U.S. Patent Application Serial 

 *** nor any divisions, continuations, continuations-in-part, reissues or reexaminations therefor or thereof, or any and
all foreign counterparts thereof, all of which are already non-exclusively licensed to IntraLase pursuant to the License. Further, the term “Patent Rights” shall not include any rights abandoned by IntraLase pursuant to Section 7.03(c).
below. 
  
 II. GRANT 
  
 2.01 (a) Licensor hereby grants to IntraLase a sole and exclusive, worldwide
license under the Patent Rights to make, use, offer for sale and sell the Licensed Products in the Field of Use. IntraLase shall have the right to sub-license its rights hereunder to no more than one sub-licensee in each country in the world
(reserving no rights to itself in the territory of any such sub-license) on prior written notice (which shall include the name of the sub-licensee and the territorial scope of its sub-license) to Licensor. Each such sub-license shall be subject and
subordinate to the terms and conditions of this Agreement, except that no sub-licensee shall have the right to grant further sub-licenses. Each such sub-license shall require additional payment to Licensor of the maintenance fee payable from each
sub-licensee under Section 4.02(a), except that this maintenance fee shall continue beyond the first 24 months and as long as the sub-license is in effect. IntraLase shall be responsible for collection of all payments under each sub-license, and
shall forward to Licensor payments due to Licensor. 
  
 (b) At any
time following the first anniversary of the Effective Date, IntraLase shall have the right, effective on written notice to Licensor, to convert IntraLase’s exclusive license hereunder to a non-exclusive license whereupon, except as expressly
provided herein, the rights and obligations of the parties hereunder shall otherwise remain in full force and effect. 
  
 2.02 The license granted to IntraLase herein shall not be construed as a sale, lease, loan or transfer of the Patent Rights. IntraLase acknowledges that
the Patent Rights are and shall remain the sole and exclusive property of the Licensor, and IntraLase shall derive no right, title or interest in the patent rights except as provided in this Agreement. 
  
 2.03 The license granted to IntraLase herein does not include an agreement by
Licensor to provide service, support or assistance to IntraLase. 
  
 2.04 For so long as IntraLase’s license hereunder is exclusive, IntraLase shall develop and commercialize Licensed Products using reasonable effort consistent with prudent business judgment. If royalties calculated pursuant to Sections
4.04 and 4.05, totaled for Intralase and all sub-licensees, are less than the minimum royalties due pursuant to Section 4.02(b) but Intralase is otherwise in compliance with its obligations hereunder, Licensor’s sole remedy for breach of this
Section 2.04 shall be conversion of IntraLase’s license hereunder from exclusive to non-exclusive. Such conversion shall be effective upon notice from Licensor, whereupon the rights and obligations of the parties hereunder shall otherwise
remain in full force and effect. 
  
 III. DISCLOSURE AND CONFIDENTIALITY OF
PATENT APPLICATIONS AND TECHNICAL INFORMATION 
  
 3.01
Licensor shall maintain the confidentiality of all patent applications within the Patent Rights, except as otherwise required by law. 

	***	Material has been omitted pursuant to a request for confidential treatment. 

  
  

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 3.02 IntraLase shall protect the confidentiality of all patent applications within the Patent Rights and
not use or disclose such patent applications to any third party except as otherwise expressly permitted herein. IntraLase shall not be so obligated for the confidentiality of such patent applications which: 
  
 (a) becomes publicly known or available due to the manufacture or sale of
Licensed Products; 
  
 (b) is publicly available at the time of
delivery to IntraLase or becomes publicly available through no act or fault of IntraLase; 
  
 (c) is lawfully obtained by IntraLase from a third party who has not illegally derived such information and who does not have an obligation to maintain the confidentiality of such information; or 
  
 (d) is lawfully in the possession of IntraLase prior to the time of delivery
to IntraLase as evidenced by appropriate documentary evidence within the possession of IntraLase. 
  
 Notwithstanding the foregoing, IntraLase shall have the right to make such disclosures as are required by law and may, further, make disclosure of
confidential information to its attorneys, investment bankers and auditors and to actual or potential investors in IntraLase subject to such investors having first entered into a binding confidentiality agreement consistent herewith. 
  
 IV. LICENSE FEES, ROYALTIES AND OTHER PAYMENTS 
  
 4.01 In consideration of the rights granted herein, IntraLase shall pay to
Licensor $85,000 as an up-front license fee within five days after the Effective Date. 
  
 4.02 (a) In further consideration of the license granted herein, IntraLase shall pay to Licensor a monthly license maintenance fee of US$5,000.00 during the first 24 months following the Effective Date and, during
such 24 month period and for as long as the sub-license is in effect, an additional $5,000 per month for each sub-license granted by IntraLase. The first such payment shall be due on the Effective Date and each subsequent monthly maintenance payment
shall be due on or before the same date of each calendar month thereafter. 
  
 (b) Commencing on the second anniversary of the Effective Date, and as long as IntraLase’s license hereunder is exclusive, IntraLase shall pay to Licensor monthly minimum royalty fee. During the third year after
the Effective Date (months 25 to 36), such fee shall be $10,500 per month. During the fourth year after the Effective Date (months 37 to 48), such fee all be $16,700 per month. During the fifth year after the Effective Date and all subsequent years
(months 49 and beyond), such fee shall be $20,000 per month. Upon the conversion of the exclusive license to non-exclusive license pursuant to Sections 2.01(b) or 2.04, Intralase shall pay to Licensor a monthly minimum royalty fee of $5,000 per
month for as long as IntraLase’s non-exclusive license is in effect. All payments under this Section 4.02(b) shall be due on or before the 15th day of the calendar month to which they relate and shall be creditable against royalties actually
due to Licensor hereunder with respect to the related quarter. The minimum royalty payable with respect to any quarter shall not be credited against royalties due for sales made during any other quarter, and shall not be refunded for any reason.

  

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 4.03 Payments made pursuant to Sections 4.01 and 4.02(a) shall be creditable against royalty payments
otherwise due to Licensor pursuant to Section 4.04 virtue of sales of Licensed Products occurring with 18 months after the Effective Date Payments made pursuant to Sections 4.01 and 4.02(a) shall not be creditable against royalty payments due by
virtue of sales of Licensed Products occurring more than 18 months after the Effective Date. 
  
 4.04 (a) In further consideration of the rights granted herein, IntraLase shall remit a royalty of *** of Net Sales (regardless of whether sales were made by IntraLase or by a sub-licensee of IntraLase). Such royalty
obligation shall be inclusive of IntraLase’s royalty obligations pursuant to Section 4.03 of the License, and IntraLase shall have no further obligations to Licensor pursuant to Sections 4.03 and 4.05 of the License (such obligations being
subsumed by IntraLase’s obligations pursuant to this Section 4.04 and Section 4.06 of this Agreement). 
  
 (b) Royalties due pursuant to subsection (a), above, shall be paid quarterly, with each payment due within 60 days after the end of the calendar quarter
to which it relates. Each such royalty payment shall be accompanied by a written report delineating the calculation of the royalties owed. Royalty reports are to be of a form reasonably acceptable to Licensor and detail Licensed Products sales on a
country-by-country and product-by-product basis, and include sufficient detail to enable Licensor to calculate royalties payable therein, including any offsets and deductions. The amount of royalties owed shall be converted to and paid in United
States Dollars at the selling exchange rate quoted by the Citibank foreign exchange desk as of the close of business on the last business day before each anniversary of the Effective Date. 
  
 4.05 In the event that a Licensed Product includes a component subject to
another agreement which also requires IntraLase to pay royalties to a third party which is not a subsidiary of, co-owned by or controlled by IntraLase (“Other Components”), then Net Sales for purposes of Section 4.04 shall be calculated
*** of the Licensed Product without the component and if sold separately, and ***. If the Licensed Products and the component are not sold separately, then Net Sales shall be calculated in the same manner, but wherein ***. In no case shall the
calculated fraction be less than ***. Furthermore, the reduction in any quarterly royalty payment *** multiplied by the ***, where *** shall not be greater *** shall not exceed the actual royalty amount payable and paid to such third party by
IntraLase for the identical period. Notwithstanding the foregoing, this Section 4.05 shall apply only with respect to sales by Licensee. On sales by sub-licensees, Net Sales shall be calculated on *** of each Licensed Product, as defined, without
deducting the price or value of *** incorporated therein. 
  
 4.06
During the term of this Agreement, and for a period of two years after any expiration or termination of this Agreement, IntraLase and all sub-licensees of IntraLase shall maintain a complete, clear, accurate record with respect to Net Sales of
Licensed Products in sufficient detail to enable the royalty thereon to be determined. To ensure compliance with the terms of this Agreement, Licensor shall have the right to have an inspection and audit of all of the relevant accounting and sales
books and records of IntraLase and all such records of each sub-sublicensee of IntraLase, conducted by an independent certified public accountant reasonably acceptable to both parties, whose fee is paid by Licensor, except as set forth below. Such
inspection shall be conducted during regular business hours at IntraLase’s (or its sub-licensee’s) offices and in such a manner as not to interfere with IntraLase’s (and its sub-licensee’s) normal business activities. In no event
shall audits be made 

	***	Material has been omitted pursuant to a request for confidential treatment. 

  

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 hereunder more often than every six months. If such inspections should disclose any under-reporting by IntraLase or any
of its sub-licensee, IntraLase shall promptly pay Licensor such amount, together with interest thereon accrued daily at a rate of one and one half percent per month or the highest rate allowed by law, whichever is lower, from the date on which such
amount became due to Licensor. If the underpayment amount is more than five percent of the amount due for the relevant period, IntraLase shall in addition pay Licensor’s costs and expenses for such audit. 
  
 V. REPRESENTATIONS AND WARRANTIES 
  
 5.01 Licensor represents and warrants that: (i) he has the full right and
authority to grant the license rights provided herein to IntraLase, (ii) such grant of rights to IntraLase is not inconsistent with any other agreement to which Licensor is party, and (iii) except as expressly provided herein or in the License, the
Patent Rights disclose all inventions, and constitute all patent applications and issued patents, currently owned, in whole or part, by Licensor with respect to the manufacture, use or sale of a laser system, or components thereof, useful within the
Field of Use (except for surface ablation of the cornea). 
  
 5.02
LICENSOR MAKES NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED, AND HEREBY EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, REGARDING THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PATENT RIGHTS. LICENSOR MAKES NO
REPRESENTATION OR WARRANTY THAT THE USE OF THE PATENT RIGHTS WILL NOT INFRINGE ANY PROPRIETARY OR INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY. 
  
 VI. INDEMNIFICATION; LIMITATION OF LIABILITY 
  
 6.01 IntraLase shall indemnify, defend, and hold harmless Licensor, its officers, directors, employees and agents from and against all claims, losses,
costs, damages, fees and expenses, including reasonable attorney’s fees for all third party claims arising out of, or relating to, IntraLase’s and/or any sub-licensee’s commercial distribution of Licensed Products, including but not
limited to, any product liability claims; provided, however, that: (i) Licensor shall notify IntraLase promptly upon becoming aware of any such claim or loss or the reasonable probability of the assertion of any such claim or loss, and (ii) Licensor
shall provide reasonable assistance to IntraLase in the defense of any such claim. Licensor shall have the sole right to defend any such claim using counsel of its choosing; provided, however, that Licensor shall have the right to retain independent
counsel at his sole expense. 
  
 6.02 (a) Upon a finding of fraud
or a finding of misrepresentation or material breach by Licensor of a representation of warranty set forth in Section 5.01 by a court of appropriate jurisdiction in a final, unappealable decision, Licensor’s liability to IntraLase for any
exemplary and compensatory damages or otherwise shall be limited to the aggregate of the amounts paid to Licensor hereunder during the 24 month period prior to the date of such judicial decision. 
  
 (b) Upon a finding of material breach of this Agreement by Licensor (other
than a breach of warranty pursuant to Section 6.02(a)) by a court of appropriate jurisdiction in a final, unappealable decision, Licensor’s liability to IntraLase for any exemplary and compensatory damages or otherwise shall be limited to the
aggregate of the amounts paid to Licensor hereunder during the 9 month period prior to the date of such judicial decision. 
  

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 (c) Upon a final judicial decision against Licensor as described in either subsection 6.02(a) or 6.02(b),
IntraLase shall have the right, in its sole discretion, either to: (i) terminate this Agreement, or (ii) retain this Agreement in effect. 
  
 VII. INFRINGEMENT; PATENT RIGHTS 
  
 7.01 Each party shall promptly provide written notice to the other of any known or suspected infringement of any of the Patent Rights by a third party.
IntraLase shall then determine within 90 days whether to initiate, at its sole option, any action against such third party in its name and, if it deems necessary or appropriate, in the name of Licensor. Should IntraLase choose not to pursue such
action, Licensor may then initiate such action at his own expense; however, IntraLase may, at its expense, participate in such action to the extent allowable by law. Neither party shall enter into any settlement agreement regarding any such
infringement without the written consent of the other, which consent shall not be unreasonably withheld. 
  
 7.02 Each party shall promptly provide written notice to the other of any claim made by a third party against it for patent infringement or
misappropriation of proprietary information in the manufacture or distribution of Licensed Products, and each party shall cooperate fully with the other in defense of such action. 
  
 7.03 (a) Licensor shall have the sole right to prosecute and maintain the Patent Rights; provided, however, that Licensor
shall diligently pursue such prosecution and maintenance, in consultation with IntraLase. Intralase may request Licensor to seek protection for an Additional Patents, which are defined as divisions, continuations, continuations-in-part, reissues,
re-examinations, and all foreign counterparts of U.S. Patent Nos. 5,549,632 and 5,984,916, Licensor shall cooperate with IntraLase and diligently pursue such prosecution. In the event that Licensor decides to seek protection for an Additional
Patent, Licensor shall notify IntraLase, describing the Additional Patent, the intended filing country or organization, type of filing. Additional information will be provided upon request. Within 60 days after notification by Licensor, IntraLase
shall provide a written response indicating whether or not it elects to include the Additional Patent under the definition of Patent Rights under this Agreement. If IntraLase declines to include the Additional Patent, such as by written notice or by
failing to notify Licensor within 60 days, then such Additional Patent shall not be included within the definition of Patent Rights, and IntraLase shall have no further rights under this Agreement with respect to said Additional Patent, and its
divisions, continuations, continuations-in-part, reissues, re-examinations, and all foreign counterparts. If IntraLase elects to include the Additional Patent under the Patent Rights, Licensor shall promptly provide to IntraLase copies of all
correspondence received by Licensor from any government body with respect to the Patent Rights and shall afford IntraLase reasonable opportunity to review and comment upon any proposed filing with or correspondence directed to any such governmental
body with respect to the Patent Rights. In consideration for the rights granted herein, IntraLase agrees to pay all reasonable Patent Expenses related to the Patent Rights and Additional Patents, defined as including all attorney’s fees, filing
fees, maintenance fees and all other costs including reasonable compensation to Licensor for time and expenses. All such Patent Expenses shall be due and payable by IntraLase upon invoice from Licensor accompanied by reasonable documentation of the
amount for which reimbursement is sought. 
  
 (b) As of the date
of this Agreement, two such Additional Patents are pending, including a U.S. divisional and a foreign filed application. Licensor will notify IntraLase in accordance with Section 7.03(a) herein, and if IntraLase elects to include either or both of
the 
  

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 Additional Patents within the definition of Patent Rights then, in addition to the Patent Expenses set forth herein,
IntraLase agrees to pay past expenses of the elected patent(s), which past expenses are $6,000 for the U.S. divisional and $14,000 for the foreign filed application. 
  
 (c) IntraLase shall have the right, on notice to Licensor, to abandon its obligation to prosecute and maintain any or all of
the Patent Rights, in whole or part, whereupon IntraLase’s rights and obligations hereunder with respect to such of the Patent Rights which are so abandoned shall terminate and such abandoned rights shall thereafter no longer be included in the
defined term “Patent Rights.” 
  
 VIII. TERM AND TERMINATION

  
 8.01 The term of this Agreement shall be deemed to have
commenced as of the Effective Date. IntraLase’s royalty obligations hereunder shall remain in effect, on a country-by-country basis, until the date of the expiration of the last to expire of: (i) the Patent Rights and (ii) the “Patent
Rights” as defined in the License, in such country. The term of this Agreement shall expire upon the expiration of the last to expire of the Patent Rights anywhere in the world. 
  
 8.02 Either party has the right to terminate this Agreement if the other party breaches or is in default of any material
obligation hereunder, which default is either incapable of cure or which, being capable of cure, has not been cured within 30 days after receipt of notice of such default from the non-defaulting party or within such additional cure period as the
non-defaulting party may authorize. Failure to pay any amount when due, including but not limited to any underpayment by more than 15 percent of any amount due to Licensor hereunder, shall be deemed a material breach. 
  
 8.03 Upon termination of this Agreement pursuant to Section 8.02, all of
IntraLase’s rights under the Agreement and all rights of any sub-licensee of IntraLase hereunder, shall be terminated. Further, IntraLase and its sub-licensees shall immediately cease the manufacture and sale of the Licensed Products; however,
existing inventory shall be permitted to be sold or liquidated within 90 days of the termination date, and royalties paid to Licensor pursuant to Section 4.04. 
  

8.04 Articles III and VI and Sections 4.06, 9.02, 9.05, 9.08 and 9.09, and any cause of action or claim accrued to either party shall survive
expiration of the term of this Agreement or termination of this Agreement for any reason. 
  
 8.05 In the event Licensor seeks or is involuntarily placed under the protection of the bankruptcy laws, Title XI, U.S. Code, and the trustee in bankruptcy elects to reject this Agreement, IntraLase hereby elects,
pursuant to Section 365(n), to retain all rights granted herein. This Agreement shall immediately terminate in the event that IntraLase seeks or is involuntarily placed under the protection of the bankruptcy laws. Intralase shall provide notice to
Licensor as soon as it has decided to file for bankruptcy, and prior to the filing. The Agreement shall terminate upon such notice from Intralase. Intralase shall not include this Agreement or the License as a part of Intralase assets in any of its
bankruptcy filings. 
  
 IX. MISCELLANEOUS 
  
 9.01 IntraLase and its sub-licensees shall mark each Licensed Product, or
its packaging, made and sold by either of them with an appropriate marking identifying the pendency of any patent application and/or any issued patent forming part of the Patent Rights. 
  

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 9.02 All notices and fees payable under this Agreement shall be deemed duly given upon the next business
day after: (i) delivery, if delivered by hand, (ii) confirmation in writing, if sent by facsimile or electronic mail or (iii) three days after posting, if sent by courier or express mail, to the party at the address set forth below (or to such other
address as either party may hereafter specify by notice to the other): 
  
 IntraLase Corp. 
 30 Hughes, Suite 206 
 Irvine, CA 92618 
 Attention: President 
  
 Shui Lai, Ph.D.

 1223 Orchard Glen Circle 
 Encinitas, California 92024 
  
 9.03 This Agreement shall not be assignable by either party without the prior written consent of the other party which shall not be unreasonably withheld; provided, however, that IntraLase shall have the right to assign all of its rights
and obligations hereunder in the event of a merger or acquisition of IntraLase or the sale of substantially all of the assets to which this Agreement relates. 
  

9.04 Licensor and IntraLase are independent contractors under this Agreement, and nothing contained herein shall be construed to create a partnership,
joint venture or agency relationship between the parties herein. Neither Licensor nor IntraLase has the authority to bind the other to any third party or to otherwise act in any way as a representative of the other. 
  
 9.05 This Agreement and any terms and conditions therein shall be governed
and interpreted according to the laws of the State of California, excluding any choice of law principles that would cause the law of any other jurisdiction to apply. 
  
 9.06 If any term of this Agreement is invalid or unenforceable under any statute, regulation, ordinance or other rule of
law, such term shall be deemed reformed or deleted but only to the extent necessary to comply with such statute, regulation, ordinance or rule, and the remaining provisions shall remain in full force and effect. 
  
 9.07 The failure of either party at any time to require performance by the
other party of any provision of this Agreement shall in no way affect the right to require such performance at any time thereafter, nor shall the waiver of either party of a breach of any provision of this Agreement constitute a waiver of any
succeeding breach of the same or any other provision. 
  
 9.08 All
disputes arising out of or relating to the subject matter of this Agreement that are not resolved between the parties shall be submitted to full and final resolution by binding arbitration, to be conducted in Irvine, California under the Commercial
Rules of the American Arbitration Association. Judgment on the arbitration award may be entered in any court of competent jurisdiction. 
  

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 9.09 The prevailing party in any legal action or arbitration proceeding brought by one party against the
other and arising out of this Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses, including court costs, arbitration fees and reasonable attorneys’ fees. 
  
 9.10 The headings contained in this Agreement are for convenience of
reference only and shall not affect the interpretation or meaning of this Agreement. The use of the singular or plural form shall include the other form and the use of the masculine, feminine, or neuter gender shall include the other genders.

  
 9.11 This Agreement constitutes the complete and exclusive
statement of the agreement between the parties and supersedes all agreements, oral or written, and all other communications between the parties relating to the subject matter of this Agreement. 
  
 9.12 This Agreement may only be amended, modified, superseded or terminated,
other than by its terms, only by a writing signed by both parties. 
  
 9.13 This Agreement may be executed in counterparts which shall be deemed originals and which together shall constitute one instrument. 
  
 9.14 Upon the execution of this Agreement, the non-exclusive Patent Rights of the License as to U.S. Patent No. 5,549,632 and its divisions,
continuations, continuations-in-part, reissues, substitutes, and extensions throughout the world shall terminate. Except as expressly provided herein, the License shall remain in full force and effect according to its terms. 
  
 In order to bind themselves to this Agreement, the parties have signed and
executed this Agreement as of the Effective Date. 
  

									
	 SHUI LAI, Ph.D.
	 	 	 	 INTRALASE CORPORATION

					
	 By:
	 	  

	 	 	 	 By:
	 	

	 	 	       Signature
	 	 	 	 	 	       Signature

			
	
 Printed Name
	 	 	 	
 Printed Name

				
	 	 	 	 	 	 	
 Title

  

 9Separation and Consulting Agreement

 EXHIBIT 10.19 
  
 SEPARATION AND CONSULTING AGREEMENT 
  
 This Separation and Consulting Agreement is made and entered into by INTRALASE INC., a Delaware corporation
(“Company”) and RANDY ALEXANDER (“Alexander”). 
  
 WHEREAS, Alexander has been employed by the Company since December 1, 1998 and has served as its President since such date, pursuant to the terms of an Offer Letter dated November 20, 1998 (“Offer Letter”). 
  
 WHEREAS, the parties have concluded that the Company should seek a new
President and Chief Executive Officer for the Company’s next phase and wish to retain Alexander as its President and Chief Executive Officer until his replacement has been hired and as of such date (the “Termination Date”) terminate
Alexander’s regular full time employment. In order to assure an orderly transition, the Company is willing to provide Alexander with severance pay beyond what he is entitled to under his Offer Letter in consideration for his being reasonably
available for a one year period beyond the Termination Date to provide consulting services as the Company may request. 
  
 WHEREAS, the Company and Alexander entered into a Severance Agreement dated April 19, 2002 (the “Severance Agreement”) providing for six months
of salary continuation upon a Change of Control of the Company and a termination of employment of Alexander. The parties hereto acknowledge that the Severance Agreement does not apply to the circumstances described herein. 
  
 WHEREAS, the parties also wish to assure continued protection for the
Company’s highly valuable trade secrets and proprietary data, as well as its advantageous relationships with customers, prospects, vendors, and partners, all of which were entrusted to Alexander during his service to the Company and would be
jeopardized if Alexander rendered services to certain competitors during the consulting period. 
  
 WHEREAS, the parties also wish to mutually release all claims, known or unknown, that they may have against each other. 
  
 NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 
  

	1.	Voluntary Resignation: Alexander hereby resigns voluntarily from his employment with the Company effective upon the Termination Date, and relinquishes his titles of President
and Chief Executive Officer as well as any other positions, titles, or directorships he may hold with the Company or any of its affiliated companies, effective on the Termination Date. Alexander shall continue his employment with the Company until
the Termination Date as President and Chief Executive Officer on the same terms as existed as of the date hereof. 

  

	2.	Accrued Salary, Vacation, and Expenses: On or before Termination Date, the Company shall pay Alexander all unpaid salary and unused accrued vacation due through the
Termination Date. The Company shall reimburse Alexander for all reasonable and necessary business expenses he has incurred through the Termination Date in accordance with Company policy provided Alexander promptly submits acceptable documentation.

  

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	3.	Bonus Compensation: Alexander earned and is entitled to a cash bonus pursuant to the Company’s existing management bonus program for the period ending December 31, 2002,
which bonus amount has been paid. Alexander acknowledges that he has earned no other amount and is not entitled to any further cash or stock compensation pursuant to the Company’s existing management bonus program or any other agreement or
understanding for incentive cash or stock compensation except as provided for in the preceding sentence. 

  

	4.	Return of Company Property: Alexander shall gather up and return all property of the Company in his possession or control by the Termination Date, including but not limited
to any keys, computer or other office equipment, and the originals and copies of all paper or electronic files, records, or other documents. 

  

	5.	Consulting Agreement: Effective on the Termination Date, and continuing until the two year anniversary of such date, or until terminated earlier in accordance with this
Agreement (“Consulting Period”), Alexander shall make himself reasonably available to provide advice and consultation within his areas of expertise as requested from time to time by the Board of Directors of the Company or other designated
members of management, subject to the following conditions: 

  
 A. Other Commitments: The Company acknowledges that Alexander may seek and accept employment and other opportunities elsewhere during the Consulting Period subject to the limitations set forth in this
Agreement, and the Company will make every reasonable effort to accommodate Alexander’s other commitments in requesting consulting services under this Agreement. The Company and Alexander will make every reasonable effort to request and
provide, respectively, consulting services at mutually convenient times. However, the parties agree that requests for consulting services shall not interfere with or impede Alexander’s other employment or opportunities. 
  
 B. No Authority: During the Consulting Period,
Alexander shall have no authority to act on behalf of the Company or to enter into any agreement or obligation without the express prior authorization of the Board of Directors. 
  
 C. No Offset for Other Income: The compensation provided under this Agreement during the Consulting
Period shall not be offset by any income Alexander earns from any other source. 
  
 D. Trade Secrets and Unfair Competition: Alexander acknowledges that he has been entrusted with access to the Company’s most
valuable trade secrets and proprietary data, including but not limited to detailed knowledge concerning the Company’s current and planned products and services, clinical trials, know-how, design and manufacturing techniques, research and
development, business plans, marketing and sales programs, financial records, prices and costs, personnel files, potential mergers and acquisitions, and the identities, needs, and preferences of the Company’s customers, prospects, vendors and
partners. During the Consulting Period, although Alexander may accept employment with a competitor who has a femtosecond laser project in the field of ophthalmology, Alexander shall not disclose or use any of the Company’s trade secrets or
proprietary data described above and he shall not work in any capacity on any femtosecond laser project in the field of ophthalmology, nor shall he provide any work, services, advice, documents, consulting or information of any kind to any
competitor or third party with regard to any femtosecond laser project in the field of ophthalmology. 
  

 2 

 E. Termination of Consulting Period: The Company may terminate the Consulting
Period at any time and discontinue all pay in the event that Alexander commits a material breach of his obligations under this Agreement or engages in gross misconduct. 
  

	6.	Consulting Compensation: In consideration for Alexander being available to consult during the Consulting Period, the Company shall provide Alexander the following pay and
benefits: 

  
 A. Salary: The
Company shall continue paying Alexander’s base salary bi-weekly at the rate of $8,461.54 for the twelve month period commencing on the Termination Date payable through the Company’s regular payroll, minus appropriate withholding and
payroll deductions and shall pay Alexander $1,000 per month for the twelve month period commencing on the first anniversary of the Termination Date. 
  
 B. Health Coverage: The Company shall provide Alexander the opportunity commencing on the Termination Date to elect to continue his
coverage under the Company’s group health plans pursuant to COBRA. The Company will pay up to $300.00 per month to Alexander to apply to the expenses of such health coverage during the Consulting Period. 
  
 C. Stock Options: The incentive stock options and
nonqualified stock options granted to Alexander for the purchase of shares of the common stock of the Company which remain outstanding for the number of shares and granted on the date indicated are: 
  

			
	 DATE GRANTED

	  	NUMBER OF SHARES

	 December 1, 1998
	  	100,000
	 March 23, 1999
	  	15,000
	 November 1, 2000
	  	18,750
95,924
	 December 13, 2001
	  	71,575
	 February 8, 2002
	  	83,278
	 May 9, 2002
	  	200,000
	 May 17, 2002
	  	83,210

  
 and shall continue to vest in
accordance with their terms during the first twelve months of the Consulting Period. Alexander’s services to the Company under this Agreement during the first twelve months of the Consulting Period, shall constitute “continuous
service” for purposes of the Company’s stock option plans and Alexander’s stock option agreements. At the time of the termination of the Consulting Period, Alexander shall have ninety days to exercise the options which were vested as
of the first anniversary of the Termination Date and continue to be outstanding as of the last day of the Consulting Period. Thereafter, all stock options granted to Alexander which have not then been exercised shall expire. 
  

 3 

 D. Restricted Stock: Alexander purchased 220,000 shares of restricted stock on
September 25, 2000 by delivery of his promissory note in the principal amount of $56,000 (the “First Note”) and 121,286 shares of restricted stock on March 8, 2002 by delivery of his promissory note in the principal amount of $148,786 (the
“Second Note” and with the First Note the “Notes”). The restricted stock has fully vested prior to the date hereof. The principal and interest on the Notes shall remain outstanding and due in accordance with the terms of the
Notes. The Company shall not repurchase the vested shares of restricted stock. 
  

	7.	Mutual Release of All Claims: Alexander and the Company agree that this Agreement constitutes a full and final settlement of any and all claims they may have against each
other. Concurrently with the execution of this Agreement, the parties shall also execute the Mutual Release attached as Exhibit A in accordance with its terms, and this Agreement shall not take effect until the Mutual Release has taken effect.

  

	8.	Confidentiality of Agreement: Alexander and the Company shall keep the terms of this Agreement confidential, except that Alexander may disclose it to his spouse and both
parties may make necessary disclosures to their accountants and attorneys, provided the recipient of any such disclosure maintains confidentiality. The parties may also make such disclosures as are required by law, or by a subpoena or court order.

  

	9.	Confidentiality: Alexander acknowledges and agrees that he remains subject to all obligations imposed by the Non-Disclosure and Development Agreement he signed in connection
with his employment and all other policies and agreements concerning the confidentiality of the Company’s trade secrets and proprietary data, and ownership of patents, copyrights, trademarks, inventions, and discoveries. Alexander acknowledges
that these obligations shall survive the Consulting Period and are not impaired or limited by the terms of this Agreement. 

  

	10.	No Solicitation: During the Consulting Period, Alexander shall not directly or indirectly solicit or induce, or attempt to solicit or induce, any employee or consultant of
the Company to terminate their employment or cease rendering services to the Company. 

  

	11.	Non-Disparagement: Alexander shall refrain from making any false or disparaging remarks about the Company and its personnel, products, and services. The Company will direct
management of the Company to refrain from making any false or disparaging remarks about Alexander or his character, abilities, and work performance. If asked about the circumstances surrounding Alexander’s separation from employment, the
parties may state that Alexander left the Company by mutual agreement on amicable terms. In response to inquiries about Alexander from prospective employers, the Company shall confirm only his titles, dates of employment, final compensation and
benefits, and the fact that he resigned by mutual agreement. 

  

	12.	Non-Admission: Neither Alexander nor the Company admits any wrongdoing or liability. If this Agreement is not executed or does not become effective for any reason, it shall
be null and void. 

  

	13.	Amendment: This Agreement can be modified or amended only in a subsequent written document signed by both Alexander and the Company. A waiver of any breach of this Agreement
shall not constitute a waiver of any future breach. 

  

 4 

	14.	Withholding: All payments to Alexander under this Agreement shall be subject to appropriate withholding and payroll deductions as required by applicable law or Company
policy. 

  

	15.	Severability: If any provision of this Agreement is found to be invalid, all other provisions shall remain in effect. 

  

	16.	Arbitration and Equitable Relief: Any dispute arising out of or relating to this Agreement shall be settled by final and binding arbitration to be held in Orange County,
California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association. The arbitrator may grant injunctions and all other forms of relief available in a court of law.
Payment of the fees and expenses of the Arbitrator(s) shall be allocated as provided by applicable law. The parties shall be entitled to reasonable discovery. The decision of the arbitrator shall be final and binding on the parties, except to the
extent that review in court is allowed by law. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. Alexander and the Company understand that they are voluntarily waiving the right to trial by jury.

  

	17.	Successors: The Company shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the
business or assets of the Company, to assume the Company’s obligations under this Agreement. 

  

	18.	Entire Agreement: This Agreement and the documents it preserves or incorporates shall constitute the entire agreement between the parties, and supersede all other agreements,
whether oral, written, or implied, regarding the subject matter hereof, including without limitations the Offer Letter and the Severance Agreement. 

  

	19.	Counterparts: This Agreement may be executed in one or more counterparts, and the signature pages may be transmitted by facsimile, each of which shall be deemed an original
and all of which together shall be considered one and the same agreement. 

  

	20.	Voluntary Agreement: Alexander has entered into this Agreement freely and voluntarily, after having been advised to seek advice of legal counsel and having had adequate
opportunity to do so. 

  
 [signature page follows]

  

 5 

 IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the 13th day of
February, 2003. 
  

			
	
	/s/    RANDY ALEXANDER
	

	 Randy Alexander

	
	INTRALASE INC.,
	a Delaware corporation
		
	By:	 	/s/    WILLIAM J. LINK
	 	 	

	 Name: William J. Link

	 Title: Director, Chairman of Compensation Committee 

  

 6 

 EXHIBIT A 
  

MUTUAL RELEASE 
  
 This Mutual Release (“Release”) is made and entered into by RANDY ALEXANDER (“Alexander”) and INTRALASE INC., a Delaware corporation
(“Company”). 
  
 In consideration of the promises set
forth in the Separation and Consulting Agreement between Alexander and the Company of the same date as this Agreement (“Separation Agreement”) and for other valuable consideration, Alexander and the Company agree as follows: 
  

	1.	Mutual Release and Waiver of Claims 

  

	 	(a)	Except as provided in Section 1(b), Alexander, for himself and on behalf of his spouse, dependents, heirs, executors, administrators, legal representatives, successors, and assigns
(collectively referred to in this Release as “Alexander”), hereby unconditionally and forever releases, discharges, and waives any and all claims of any nature whatsoever, whether legal, equitable or otherwise, known or unknown, that
Alexander may have against the Company, its subsidiaries and affiliates, and their employees, officers, directors, shareholders, insurers, representatives, agents, successors, and assigns, including but not limited to claims relating to his hiring,
compensation, benefits, assignments, or termination, or arising under any state or federal equal employment law such as Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of
1967, as amended (as further described in Section 2 below); the Older Workers Benefit Protection Act, the Americans with Disabilities Act; claims under the Employee Retirement Income Security Act of 1974, as amended; the California Fair Employment
and Housing Act; or any other federal, state or local laws or regulations regarding employment discrimination or termination of employment. This Release also includes claims for wrongful discharge; fraud or fraudulent inducement; breach of contract,
both express and implied; breach of the covenant of good faith and fair dealing, both express and implied; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference
with contract or prospective economic advantage; and defamation under any statute, rule, regulation or under the common law. 

  

	 	(b)	Notwithstanding the foregoing, Alexander does not release, discharge or waive: (i) any rights to receive any benefits provided under the provisions of any Company-maintained
qualified retirement plan in which Alexander participates, (ii) any conversion or COBRA rights under a Company-sponsored group term life insurance plan in which Alexander participates, (iii) Alexander’s right to indemnification from the Company
to the fullest extent permitted under Delaware General Corporation Law, (iv) Alexander’s right to enforce the terms of the Separation and Consulting Agreement and this Release; and (v) any future rights Alexander may have as a stockholder.

	 	(c)	The Company, for itself and its subsidiaries and affiliates, and their respective officers, directors, employees, agents, successors, and assigns (collectively referred to in this
Release as “Company”) hereby unconditionally and forever releases, discharges, and waives any and all claims of any nature whatsoever, whether legal, equitable or otherwise, known or unknown, that the Company may have against Alexander or
his spouse, dependents, heirs, executors, administrators, legal representatives, successors, and assigns, including but not limited to claims relating to Alexander’s employment with the Company or arising under state or federal law.

  

	2.	Release and Waiver of Claims Under ADEA 

  
 Alexander acknowledges that before signing this Release, the Company advised him to consult with an attorney of his choosing with respect to possible
claims under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), as well as under all other federal, state and local laws within the scope of Section 1 above. Alexander understands that ADEA is a federal statute that
prohibits discrimination on the basis of age in employment, benefits, and benefit plans. Alexander wishes to waive any and all claims under the ADEA, as well as under all other federal, state and local laws within the scope of Section 1 above, that
he may have against the Company as of the effective date of this Release and hereby waives such claims. Without detracting in any respect from any other provision of this Release: 
  

	 	(a)	Alexander agrees and acknowledges that this Release constitutes a knowing and voluntary waiver of all rights or claims he has or may have against the Company, including but not
limited to, all rights or claims arising under ADEA, that he has no physical or mental impairment of any kind that has interfered with his ability to read and understand the meaning of this Release or its terms, and that he is not acting under the
influence or impairment of any medication, drug or chemical of any type in entering into this Release. 

  

	 	(b)	Alexander understands that, by entering into this Release, he does not waive any rights or claims under the ADEA that may arise after the date of the execution of this Release.

  

	 	(c)	Alexander acknowledges that he was allowed a period of at least twenty-one (21) calendar days in which to review and decide whether to sign the Separation and Consulting Agreement
and this Release. 

  

	 	(d)	Alexander shall have a period of seven (7) calendar days after he has signed this Release in which to revoke his acceptance by notifying the Company in writing and returning any
consideration he may have received under this Release. This Release and the Separation and Consulting Agreement will not become effective until that seven day period has lapsed without such revocation by Alexander. 

  

	 	(e)	In the event of Alexander’s revocation of this Release and the Separation and Consulting Agreement pursuant to subparagraph (d) above, this Release and the Separation and
Consulting Agreement will be null and void and of no effect, and the Company will have no obligations under this Release or the Separation and Consulting Agreement. 

  

 2 

	3.	Civil Code Section 1542 

  
 The parties understand that they are waiving all claims encompassed by this Release, known or unknown. Alexander and the Company hereby waive the
protection of any law that would otherwise limit their ability to waive unknown claims, such as California Civil Code section 1542 which reads as follows: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  

	4.	Proceedings 

  
 Alexander and the Company represents that he has not filed any charges, claims, or proceedings of any kind against the other any court or state or local,
state or federal agency. To the fullest extent allowed by law, Alexander and the Company agree not to participate in any such proceeding and waives any right to recover against the other in any such proceeding instituted by any other person.

  

	5.	Severability Clause 

  
 In the event any provision or part of this Release is found to be invalid or unenforceable, all other provisions shall remain in effect. 
  

	6.	Non-Admissions 

  
 The parties expressly deny any and all liability or wrongdoing and agree that nothing in this Release shall be deemed to represent any concession or
admission of such liability or wrongdoing or any waiver of any defense. 
  

	7.	Amendment 

  
 This Release can be amended or modified only in a subsequent written document signed by Alexander and the Company. A waiver of any breach shall not
constitute a waiver of any future breach. 
  

	8.	Controlling Law 

  
 This Release shall be governed by the laws of the State of California, without regard to conflicts of law principles. 
  

	9.	Counterparts 

  
 This Release may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall be considered one and
the same agreement. 
  

 3 

	10.	Entire Agreement 

  
 This Release, the Separation and Consulting Agreement, and the agreements it incorporates shall constitute the complete agreement of the parties
concerning the subject matter, and shall supersede all other agreements or understandings whether oral, written, or implied. 
  
 IN WITNESS WHEREOF, Alexander and the Company have executed this Mutual Release this
             day of                     , 2003. 
  

			
	ALEXANDER ACKNOWLEDGES THAT HE HAS READ THIS RELEASE AND THAT HE FULLY KNOWS, UNDERSTANDS, AND APPRECIATES ITS CONTENTS, THAT HE HAS HAD AT LEAST 21 CALENDAR DAYS TO CONSIDER THIS
RELEASE, THAT THIS RELEASE MAY BE REVOKED WITHIN 7 CALENDAR DAYS AFTER ITS EXECUTION, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS RELEASE AND THE RELEASES PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE WILL.
	
	/s/ RANDY ALEXANDER
	

	 Randy Alexander

	
	INTRALASE INC.,
	a Delaware corporation
		
	By:	 	/S/ WILLIAM J. LINK
	 	 	

	 Name: William J. Link

	 Title: Director, Chairman of Compensation Committee 

  

 4

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