Document:

Unassociated Document

Exhibit 10.60

 

PUBLIC HEALTH SERVICE

PATENT LICENSE AGREEMENT – EXCLUSIVE

COVER PAGE

For PHS internal use only:

License Number: L-l19-2011/0

	 	
License Application Number:

	
A-204-2011

Serial Number(s) of Licensed Patent(s) or Patent Application(s):

U.S. Patent 7,503,238

	
  

	
Licensee:

	
Oculus Innovative Sciences, Inc.

Cooperative Research and Development Agreement (CRADA) Number (if a subject invention):

N/A

Additional Remarks:

	
  

	
Public Benefit(s):

	
Endotracheal tube clearance for preventing ventilator associated pneumonia

This Patent License Agreement, hereinafter referred to as the “Agreement”, consists of this Cover Page, an attached Agreement, a Signature Page, Appendix A (List of Patent(s) or Patent Application(s)), Appendix B (Fields of Use and Territory), Appendix C (Royalties), Appendix D (Benchmarks and Performance), Appendix E (Commercial Development Plan), Appendix F (Example Royalty Report), and Appendix G (Royalty Payment Options). The Parties to this Agreement are:

	
  

	
1)

	
The National Institutes of Health (“NIH”) or the Food and Drug Administration (“FDA”), hereinafter singly or collectively referred to as “PHS”, agencies of the United States Public Health Service within the Department of Health and Human Services (“HHS”); and

	
  

	
2)

	
The person, corporation, or institution identified above or on the Signature Page, having offices at the address indicated on the Signature Page, hereinafter referred to as “Licensee”.

	
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PHS and Licensee agree as follows:

 

	
1.

	
BACKGROUND

 

	
  

	
1.1

	
In the course of conducting biomedical and behavioral research, PHS investigators made inventions that may have commercial applicability.

 

	
  

	
1.2

	
By assignment of rights from PHS employees and other inventors, HHS, on behalf of the Government, owns intellectual property rights claimed in any United States or foreign patent applications or patents corresponding to the assigned inventions. HHS also owns any tangible embodiments of these inventions actually reduced to practice by PHS.

 

	
  

	
1.3

	
The Secretary of HHS has delegated to PHS the authority to enter into this Agreement for the licensing of rights to these inventions.

 

	
  

	
1.4

	
PHS desires to transfer these inventions to the private sector through commercialization licenses to facilitate the commercial development of products and processes for public use and benefit.

 

	
  

	
1.5

	
Licensee desires to acquire commercialization rights to certain of these inventions in order to develop processes, methods, or marketable products for public use and benefit.

 

	
2.

	
DEFINITIONS

 

	
  

	
2.1

	
“Affiliate(s)” means a corporation or other business entity, which directly or indirectly is controlled by or controls, or is under common control with Licensee. For this purpose, the term “control” shall mean ownership of more than fifty percent (50%) of the voting stock or other ownership interest of the corporation or other business entity, or the power to elect or appoint more than fifty percent (50%) of the members of the governing body of the corporation or other business entity.

 

	
  

	
2.2

	
“Benchmarks” mean the performance milestones that are set forth in Appendix D.

 

	
  

	
2.3

	
“Commercial Development Plan” means the written commercialization plan attached as Appendix E.

 

	
  

	
2.4

	
“First Commercial Sale” means the initial transfer by or on behalf of Licensee or its sublicensees of Licensed Products or the initial practice of a Licensed Process by or on behalf of Licensee or its sublicensees in exchange for cash or some equivalent to which value can be assigned for the purpose of determining Net Sales.

 

	
  

	
2.5

	
“Government” means the Government of the United States of America.

 

	
  

	
2.6

	
“Licensed Fields of Use” means the fields of use identified in Appendix B.

 

	
  

	
2.7

	
“Licensed Patent Rights” shall mean:

 

	
  

	
(a)

	
Patent applications (including provisional patent applications and PCT patent applications) or patents listed in Appendix A, all divisions and continuations of these applications, all patents issuing from these applications, divisions, and continuations, and any reissues, reexaminations, and extensions of these patents;

 

	
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(b)

	
to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.7(a):

 

	
  

	
(i)

	
continuations-in-part of 2.7(a);

 

	
  

	
(ii)

	
all divisions and continuations of these continuations-in-part;

 

	
  

	
(iii)

	
all patents issuing from these continuations-in-part, divisions, and continuations;

 

	
  

	
(iv)

	
priority patent application(s) of 2.7(a); and

 

	
  

	
(v)

	
any reissues, reexaminations, and extensions of these patents;

 

	
  

	
(c)

	
to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.7(a): all counterpart foreign and U.S. patent applications and patents to 2.7(a) and 2.7(b), including those listed in Appendix A; and

 

	
  

	
(d)

	
Licensed Patent Rights shall not include 2.7(b) or 2.7(c) to the extent that they contain one or more claims directed to new matter which is not the subject matter disclosed in 2.7(a).

 

	
  

	
2.8

	
“Licensed Processes” means processes which, in the course of being practiced, would be within the scope of one or more claims of the Licensed Patent Rights that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment of a court of competent jurisdiction.

 

	
  

	
2.9

	
“Licensed Products” means tangible materials which, in the course of manufacture, use, sale, or importation, would be within the scope of one or more claims of the Licensed Patent Rights that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment of a court of competent jurisdiction.

 

	
  

	
2.10

	
“Licensed Territory” means the geographical area identified in Appendix B.

 

	
  

	
2.11

	
“Net Sales” means the total gross receipts for sales of Licensed Products or practice of Licensed Processes by or on behalf of Licensee or its sublicensees, and from leasing, renting, or otherwise making Licensed Products available to others without sale or other dispositions, whether invoiced or not, less returns and allowances, packing costs, insurance costs, freight out, taxes or excise duties imposed on the transaction (if separately invoiced), and wholesaler and cash discounts in amounts customary in the trade to the extent actually granted. No deductions shall be made for commissions paid to individuals, whether they are with independent sales agencies or regularly employed by Licensee, or sublicensees, and on its payroll, or for the cost of collections.

 

	
  

	
2.12

	
“Practical Application” means to manufacture in the case of a composition or product, to practice in the case of a process or method, or to operate in the case of a machine or system; and in each case, under these conditions as to establish that the invention is being utilized and that its benefits are to the extent permitted by law or Government regulations available to the public on reasonable terms.

 

	
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2.13

	
“Research License” means a nontransferable, nonexclusive license to make and to use Licensed Products or Licensed Processes as defined by the Licensed Patent Rights for purposes of research and not for purposes of commercial manufacture or distribution or in lieu of purchase.

 

	
3.

	
GRANT OF RIGHTS

 

	
  

	
3.1

	
PHS hereby grants and Licensee accepts, subject to the terms and conditions of this Agreement, an exclusive license under the Licensed Patent Rights in the Licensed Territory to make and have made, to use and have used, to sell and have sold, to offer to sell, and to import any Licensed Products in the Licensed Fields of Use and to practice and have practiced any Licensed Processes in the Licensed Fields of Use.

 

	
  

	
3.2

	
This Agreement confers no license or rights by implication, estoppel, or otherwise under any patent applications or patents of PHS other than the Licensed Patent Rights regardless of whether these patents are dominant or subordinate to the Licensed Patent Rights.

 

	
4.

	
SUBLICENSING

 

	
  

	
4.1

	
Upon written approval, which shall include prior review of any sublicense agreement by PHS and which shall not be unreasonably withheld, Licensee may enter into sublicensing agreements under the Licensed Patent Rights.

 

	
  

	
4.2

	
Licensee agrees that any sublicenses granted by it shall provide that the obligations to PHS of Paragraphs 5.1-5.4, 8.1, 10.1, 10.2, 12.5, and 13.8-13.10 of this Agreement shall be binding upon the sublicensee as if it were a party to this Agreement. Licensee further agrees to attach copies of these Paragraphs to all sublicense agreements.

 

	
  

	
4.3

	
Any sublicenses granted by Licensee shall provide for the termination of the sublicense, or the conversion to a license directly between the sublicensees and PHS, at the option of the sublicensee, upon termination of this Agreement under Article 13. This conversion is subject to PHS approval and contingent upon acceptance by the sublicensee of the remaining provisions of this Agreement.

 

	
  

	
4.4

	
Licensee agrees to forward to PHS a complete copy of each fully executed sublicense agreement postmarked within thirty (30) days of the execution of the agreement. To the extent permitted by law, PHS agrees to maintain each sublicense agreement in confidence.

 

	
5.

	
STATUTORY AND PHS REQUIREMENTS AND RESERVED GOVERNMENT RIGHTS

 

	
  

	
5.1

	
(a)

	
PHS reserves on behalf of the Government an irrevocable, nonexclusive, nontransferable, royalty-free license for the practice of all inventions licensed under the Licensed Patent Rights throughout the world by or on behalf of the Government and on behalf of any foreign government or international organization pursuant to any existing or future treaty or agreement to which the Government is a signatory. Prior to the First Commercial Sale, Licensee agrees to provide PHS with reasonable quantities of Licensed Products or materials made through the Licensed Processes for PHS research use; and

 

	
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(b)

	
In the event that the Licensed Patent Rights are Subject Inventions made under a Cooperative Research and Development Agreement (“CRADA”), Licensee grants to the Government, pursuant to 15 U.S.C. §3710a(b)(1)(A). a nonexclusive, nontransferable, irrevocable, paid-up license to practice Licensed Patent Rights or have Licensed Patent Rights practiced throughout the world by or on behalf of the Government. In the exercise of this license, the Government shall not publicly disclose trade secrets or commercial or financial information that is privileged or confidential within the meaning of 5 U.S.C. §552(b)(4) or which would be considered as such if it had been obtained from a non-Federal party. Prior to the First Commercial Sale, Licensee agrees to provide PHS reasonable quantities of Licensed Products or materials made through the Licensed Processes for PHS research use.

 

	
  

	
5.2

	
Licensee agrees that products used or sold in the United States embodying Licensed Products or produced through use of Licensed Processes shall be manufactured substantially in the United States, unless a written waiver is obtained in advance from PHS.

 

	
  

	
5.3

	
Licensee acknowledges that PHS may enter into future CRADAs under the Federal Technology Transfer Act of 1986 that relate to the subject matter of this Agreement. Licensee agrees not to unreasonably deny requests for a Research License from future collaborators with PHS when acquiring these rights is necessary in order to make a CRADA project feasible. Licensee may request an opportunity to join as a party to the proposed CRADA.

 

	
  

	
5.4

	
(a)

	
In addition to the reserved license of Paragraph 5.1, PHS reserves the right to grant Research Licenses directly or to require Licensee to grant Research Licenses on reasonable terms. The purpose of these Research Licenses is to encourage basic research, whether conducted at an academic or corporate facility. In order to safeguard the Licensed Patent Rights, however, PHS shall consult with Licensee before granting to commercial entities a Research License or providing to them research samples of materials made through the Licensed Processes; and

 

	
  

	
(b)

	
In exceptional circumstances, and in the event that Licensed Patent Rights are Subject Inventions made under a CRADA, the Government, pursuant to 15 U.S.C. §3710a(b)(i)(B), retains the right to require the Licensee to grant to a responsible applicant a nonexclusive, partially exclusive, or exclusive sublicense to use the Licensed Patent Rights in the Licensed Field of Use on terms that are reasonable under the circumstances, or if Licensee fails to grant this license, the Government retains the right to grant the license itself. The exercise of these rights by the Government shall only be in exceptional circumstances and only if the Government determines:

 

	
  

	
(i)

	
the action is necessary to meet health or safety needs that are not reasonably satisfied by Licensee;

 

	
  

	
(ii)

	
the action is necessary to meet requirements for public use specified by Federal regulations, and these requirements are not reasonably satisfied by the Licensee; or

 

	
  

	
(iii)

	
the Licensee has failed to comply with an agreement containing provisions described in 15 U.S.C. §3710a(c)(4)(B); and

 

	
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(c)

	
The determination made by the Government under this Paragraph 5.4 is subject to administrative appeal and judicial review under 35 U.S.C. §203(b).

 

	
6.

	
ROYALTIES AND REIMBURSEMENT

 

	
  

	
6.1

	
Licensee agrees to pay PHS a noncreditable, nonrefundable license issue royalty as set forth in Appendix C.

 

	
  

	
6.2

	
Licensee agrees to pay PHS a nonrefundable minimum annual royalty as set forth in Appendix C.

 

	
  

	
6.3

	
Licensee agrees to pay PHS earned royalties as set forth in Appendix C.

 

	
  

	
6.4

	
Licensee agrees to pay PHS benchmark royalties as set forth in Appendix C.

 

	
  

	
6.5

	
Licensee agrees to pay PHS sublicensing royalties as set forth in Appendix C.

 

	
  

	
6.6

	
Licensee agrees to pay PHS patent cost royalties as set forth in Appendix C.

 

	
  

	
6.7

	
A patent or patent application licensed under this Agreement shall cease to fall within the Licensed Patent Rights for the purpose of computing earned royalty payments in any given country on the earliest of the dates that:

 

	
  

	
(a)

	
the application has been abandoned and not continued;

 

	
  

	
(b)

	
the patent expires or irrevocably lapses, or

 

	
  

	
(c)

	
the patent has been held to be invalid or unenforceable by an unappealed or unappealable decision of a court of competent jurisdiction or administrative agency.

 

	
  

	
6.8

	
No multiple royalties shall be payable because any Licensed Products or Licensed Processes are covered by more than one of the Licensed Patent Rights.

 

	
  

	
6.9

	
On sales of Licensed Products by Licensee to sublicensees or on sales made in other than an arms-length transaction, the value of the Net Sales attributed under this Article 6 to this transaction shall be that which would have been received in an arms-length transaction, based on sales of like quantity and quality products on or about the time of this transaction.

 

	
  

	
6.10

	
PHS agrees, upon written request, to provide Licensee with summaries of patent prosecution invoices for which PHS has requested payment from the Licensee under Paragraph 6.6. Licensee agrees that all information provided by PHS related to patent prosecution costs shall be treated as confidential commercial information and shall not be released to a third party except as required by law or a court of competent jurisdiction.

 

	
  

	
6.11

	
Licensee may elect to surrender its rights in any country of the Licensed Territory under any of the Licensed Patent Rights upon ninety (90) days written notice to PHS and owe no payment obligation under Paragraph 6.6 for patent-related expenses paid in that country after ninety (90) days of the effective date of the written notice.

 

	
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7.

	
PATENT FILING, PROSECUTION, AND MAINTENANCE

 

	
  

	
7.1

	
Except as otherwise provided in this Article 7, PHS agrees to take responsibility for, but to consult with, the Licensee in the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights and shall furnish copies of relevant patent-related documents to Licensee.

 

	
  

	
7.2

	
Upon PHS’ written request, Licensee shall assume the responsibility for the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights and shall, on an ongoing basis, promptly furnish copies of all patent-related documents to PHS. In this event, Licensee shall, subject to the prior approval of PHS, select registered patent attorneys or patent agents to provide these services on behalf of Licensee and PHS. PHS shall provide appropriate powers of attorney and other documents necessary to undertake this action to the patent attorneys or patent agents providing these services. Licensee and its attorneys or agents shall consult with PHS in all aspects of the preparation, filing, prosecution and maintenance of patent applications and patents included within the Licensed Patent Rights and shall provide PHS sufficient opportunity to comment on any document that Licensee intends to file or to cause to be filed with the relevant intellectual property or patent office.

 

	
  

	
7.3

	
At any time, PHS may provide Licensee with written notice that PHS wishes to assume control of the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights. If PHS elects to reassume these responsibilities, Licensee agrees to cooperate fully with PHS, its attorneys, and agents in the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights and to provide PHS with complete copies of any and all documents or other materials that PHS deems necessary to undertake such responsibilities. Licensee shall be responsible for all costs associated with transferring patent prosecution responsibilities to an attorney or agent of PHS’ choice.

 

	
  

	
7.4

	
Each party shall promptly inform the other as to all matters that come to its attention that may affect the preparation, filing, prosecution, or maintenance of the Licensed Patent Rights and permit each other to provide comments and suggestions with respect to the preparation, filing, prosecution, and maintenance of Licensed Patent Rights, which comments and suggestions shall be considered by the other party.

 

	
8.

	
RECORD KEEPING

 

	
  

	
8.1

	
Licensee agrees to keep accurate and correct records of Licensed Products made, used, sold, or imported and Licensed Processes practiced under this Agreement appropriate to determine the amount of royalties due PHS. These records shall be retained for at least five (5) years following a given reporting period and shall be available during normal business hours for inspection, at the expense of PHS, by an accountant or other designated auditor selected by PHS for the sole purpose of verifying reports and royalty payments hereunder. The accountant or auditor shall only disclose to PHS information relating to the accuracy of reports and royalty payments made under this Agreement. If an inspection shows an underreporting or underpayment in excess of five percent (5%) for any twelve (12) month period, then Licensee shall reimburse PHS for the cost of the inspection at the time Licensee pays the unreported royalties, including any additional royalties as required by Paragraph 9.8. All royalty payments required under this Paragraph shall be due within sixty (60) days of the date PHS provides Licensee notice of the payment due.

 

	
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8.2

	
Licensee agrees to have an audit of sales and royalties conducted by an independent auditor at least every two (2) years if annual sales of the Licensed Products or Licensed Processes are over two (2) million dollars. The audit shall address, at a minimum, the amount of gross sales by or on behalf of Licensee during the audit period, terms of the license as to percentage or fixed royalty to be remitted to the Government, the amount of royalties owed to the Government under this Agreement, and whether the royalties owed have been paid to the Government and is reflected in the records of the Licensee. The audit shall also indicate the PHS license number, product, and the time period being audited. A report certified by the auditor shall be submitted promptly by the auditor directly to PHS on completion. Licensee shall pay for the entire cost of the audit.

 

	
9.

	
REPORTS ON PROGRESS, BENCHMARKS, SALES, AND PAYMENTS

 

	
  

	
9.1

	
Prior to signing this Agreement, Licensee has provided PHS with the Commercial Development Plan in Appendix E, under which Licensee intends to bring the subject matter of the Licensed Patent Rights to the point of Practical Application. This Commercial Development Plan is hereby incorporated by reference into this Agreement. Based on this plan, performance Benchmarks are determined as specified in Appendix D.

 

	
  

	
9.2

	
Licensee shall provide written annual reports on its product development progress or efforts to commercialize under the Commercial Development Plan for each of the Licensed Fields of Use within sixty (60) days after December 31 of each calendar year. These progress reports shall include, but not be limited to: progress on research and development, status of applications for regulatory approvals, manufacturing, sublicensing, marketing, importing, and sales during the preceding calendar year, as well as, plans for the present calendar year. PHS also encourages these reports to include information on any of Licensee’s public service activities that relate to the Licensed Patent Rights. If reported progress differs from that projected in the Commercial Development Plan and Benchmarks, Licensee shall explain the reasons for these differences. In the annual report, Licensee may propose amendments to the Commercial Development Plan, acceptance of which by PHS may not be denied unreasonably. Licensee agrees to provide any additional information reasonably required by PHS to evaluate Licensee’s performance under this Agreement. Licensee may amend the Benchmarks at any time upon written approval by PHS. PHS shall not unreasonably withhold approval of any request of Licensee to extend the time periods of this schedule if the request is supported by a reasonable showing by Licensee of diligence in its performance under the Commercial Development Plan and toward bringing the Licensed Products to the point of Practical Application as defined in 37 C.F.R. §404.3(d). Licensee shall amend the Commercial Development Plan and Benchmarks at the request of PHS to address any Licensed Fields of Use not specifically addressed in the plan originally submitted.

 

	
  

	
9.3

	
Licensee shall report to PHS the dates for achieving Benchmarks specified in Appendix D and the First Commercial Sale in each country in the Licensed Territory within thirty (30) days of such occurrences.

 

	
  

	
9.4

	
Licensee shall submit to PHS, within sixty (60) days after each calendar half-year ending June 30 and December 31, a royalty report, as described in the example in Appendix F, setting forth for the preceding half-year period the amount of the Licensed Products sold or Licensed Processes practiced by or on behalf of Licensee in each country within the Licensed Territory, the Net Sales, and the amount of royalty accordingly due. With each royalty report, Licensee shall submit payment of earned royalties due. If no earned royalties are due to PHS for any reporting period, the written report shall so state. The royalty report shall be certified as correct by an authorized officer of Licensee and shall include a detailed listing of all deductions made under Paragraph 2.11 to determine Net Sales made under Article 6 to determine royalties due.

 

	
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9.5

	
Licensee agrees to forward semi-annually to PHS a copy of these reports received by Licensee from its sublicensees during the preceding half-year period as shall be pertinent to a royalty accounting to PHS by Licensee for activities under the sublicense.

 

	
  

	
9.6

	
Royalties due under Article 6 shall be paid in U.S. dollars and payment options are listed in Appendix G. For conversion of foreign currency to U.S. dollars, the conversion rate shall be the New York foreign exchange rate quoted in The Wall Street Journal on the day that the payment is due. Any loss of exchange, value, taxes, or other expenses incurred in the transfer or conversion to U.S. dollars shall be paid entirely by Licensee. The royalty report required by Paragraph 9.4 shall be mailed to PHS at its address for Agreement Notices indicated on the Signature Page.

 

	
  

	
9.7

	
Licensee shall be solely responsible for determining if any tax on royalty income is owed outside the United States and shall pay the tax and be responsible for all filings with appropriate agencies of foreign governments.

 

	
  

	
9.8

	
Additional royalties may be assessed by PHS on any payment that is more than ninety (90) days overdue at the rate of one percent (1%) per month. This one percent (1%) per month rate may be applied retroactively from the original due date until the date of receipt by PHS of the overdue payment and additional royalties. The payment of any additional royalties shall not prevent PHS from exercising any other rights it may have as a consequence of the lateness of any payment.

 

	
  

	
9.9

	
All plans and reports required by this Article 9 and marked “confidential” by Licensee shall, to the extent permitted by law, be treated by PHS as commercial and financial information obtained from a person and as privileged and confidential, and any proposed disclosure of these records by the PHS under the Freedom of Information Act (FOIA), 5 U.S.C. §552 shall be subject to the predisclosure notification requirements of 45 C.F.R. §5.65(d).

 

	
10.

	
PERFORMANCE

 

	
  

	
10.1

	
Licensee shall use its reasonable commercial efforts to bring the Licensed Products and Licensed Processes to Practical Application. “Reasonable commercial efforts” for the purposes of this provision shall include adherence to the Commercial Development Plan in Appendix E and performance of the Benchmarks in Appendix D. The efforts of a sublicensee shall be considered the efforts of Licensee.

 

	
  

	
10.2

	
Upon the First Commercial Sale, until the expiration or termination of this Agreement, Licensee shall use its reasonable commercial efforts to make Licensed Products and Licensed Processes reasonably accessible to the United States public.

 

	
  

	
10.3

	
Licensee agrees, after its First Commercial Sale, to make reasonable quantities of Licensed Products or materials produced through the use of Licensed Processes available to patient assistance programs if such programs are available.

 

	
  

	
10.4

	
Licensee agrees, after its First Commercial Sale and as part of its marketing and product promotion, to develop educational materials (e.g., brochures, website, etc.) directed to patients and physicians detailing the Licensed Products or medical aspects of the prophylactic and therapeutic uses of the Licensed Products.

 

	
  

	
10.5

	
Licensee agrees to supply, to the Mailing Address for Agreement Notices indicated on the Signature Page, the Office of Technology Transfer, NIH with inert samples of the Licensed Products or Licensed Processes or their packaging for educational and display purposes only.

 

	
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11.

	
INFRINGEMENT AND PATENT ENFORCEMENT

 

	
  

	
11.1

	
PHS and Licensee agree to notify each other promptly of each infringement or possible infringement of the Licensed Patent Rights, as well as, any facts which may affect the validity, scope, or enforceability of the Licensed Patent Rights of which either party becomes aware.

 

	
  

	
11.2

	
Pursuant to this Agreement and the provisions of 35 U.S.C. Part 29, Licensee may:

 

	
  

	
(a)

	
bring suit in its own name, at its own expense, and on its own behalf for infringement of presumably valid claims in the Licensed Patent Rights;

 

	
  

	
(b)

	
in any suit, enjoin infringement and collect for its use, damages, profits, and awards of whatever nature recoverable for the infringement; or

 

	
  

	
(c)

	
settle any claim or suit for infringement of the Licensed Patent Rights provided, however, that PHS and appropriate Government authorities shall have the first right to take such actions; and

 

	
  

	
(d)

	
If Licensee desires to initiate a suit for patent infringement, Licensee shall notify PHS in writing. If PHS does not notify Licensee of its intent to pursue legal action within ninety (90) days, Licensee shall be free to initiate suit. PHS shall have a continuing right to intervene in the suit. Licensee shall take no action to compel the Government either to initiate or to join in any suit for patent infringement. Licensee may request the Government to initiate or join in any suit if necessary to avoid dismissal of the suit. Should the Government be made a party to any suit, Licensee shall reimburse the Government for any costs, expenses, or fees which the Government incurs as a result of the motion or other action, including all costs incurred by the Government in opposing the motion or other action. In all cases, Licensee agrees to keep PHS reasonably apprised of the status and progress of any litigation. Before Licensee commences an infringement action, Licensee shall notify PHS and give careful consideration to the views of PHS and to any potential effects of the litigation on the public health in deciding whether to bring suit.

 

	
  

	
11.3

	
In the event that a declaratory judgment action alleging invalidity or non-infringement of any of the Licensed Patent Rights shall be brought against Licensee or raised by way of counterclaim or affirmative defense in an infringement suit brought by Licensee under Paragraph 11.2, pursuant to this Agreement and the provisions of 35 U.S.C. Part 29 or other statutes, Licensee may:

 

	
  

	
(a)

	
defend the suit in its own name, at its own expense, and on its own behalf for presumably valid claims in the Licensed Patent Rights;

 

	
  

	
(b)

	
in any suit, ultimately to enjoin infringement and to collect for its use, damages, profits, and awards of whatever nature recoverable for the infringement; and

 

	
  

	
(c)

	
settle any claim or suit for declaratory judgment involving the Licensed Patent Rights-provided, however, that PHS and appropriate Government authorities shall have the first right to take these actions and shall have a continuing right to intervene in the suit; and

 

	
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Date Printed: August 17, 2011

  

 

  

	
  

	
(d)

	
If PHS does not notify Licensee of its intent to respond to the legal action within a reasonable time, Licensee shall be free to do so. Licensee shall take no action to compel the Government either to initiate or to join in any declaratory judgment action. Licensee may request the Government to initiate or to join any suit if necessary to avoid dismissal of the suit. Should the Government be made a party to any suit by motion or any other action of Licensee, Licensee shall reimburse the Government for any costs, expenses, or fees, which the Government incurs as a result of the motion or other action. If Licensee elects not to defend against the declaratory judgment action, PHS, at its option, may do so at its own expense. In all cases, Licensee agrees to keep PHS reasonably apprised of the status and progress of any litigation. Before Licensee commences an infringement action, Licensee shall notify PHS and give careful consideration to the views of PHS and to any potential effects of the litigation on the public health in deciding whether to bring suit.

 

	
  

	
11.4

	
In any action under Paragraphs 11.2 or 11.3 the expenses including costs, fees, attorney fees, and disbursements, shall be paid by Licensee when Licensee initiates the action. The value of any recovery net of litigation costs made by Licensee through court judgment or settlement shall be treated as Net Sales and subject to earned royalties.

 

	
  

	
11.5

	
PHS shall cooperate fully with Licensee in connection with any action under Paragraphs 11.2 or 11.3. PHS agrees promptly to provide access to all necessary documents and to render reasonable assistance in response to a request by Licensee.

 

	
12.

	
NEGATION OF WARRANTIES AND INDEMNIFICATION

 

	
  

	
12.1

	
PHS offers no warranties other than those specified in Article 1.

 

	
  

	
12.2

	
PHS does not warrant the validity of the Licensed Patent Rights and makes no representations whatsoever with regard to the scope of the Licensed Patent Rights, or that the Licensed Patent Rights may be exploited without infringing other patents or other intellectual property rights of third parties.

 

	
  

	
12.3

	
PHS MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER DEFINED BY THE CLAIMS OF THE LICENSED PATENT RIGHTS OR TANGIBLE MATERIALS RELATED THERETO.

 

	
  

	
12.4

	
PHS does not represent that it shall commence legal actions against third parties infringing the Licensed Patent Rights.

 

	
  

	
12.5

	
Licensee shall indemnify and hold PHS, its employees, students, fellows, agents, and consultants harmless from and against all liability, demands, damages, expenses, and losses, including but not limited to death, personal injury, illness, or property damage in connection with or arising out of:

 

	
  

	
(a)

	
the use by or on behalf of Licensee, its sublicensees, directors, employees, or third parties of any Licensed Patent Rights; or

 

	
  

	
(b)

	
the design, manufacture, distribution, or use of any Licensed Products, Licensed Processes or materials by Licensee, or other products or processes developed in connection with or arising out of the Licensed Patent Rights.

 

	
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12.6

	
Licensee agrees to maintain a liability insurance program consistent with sound business practice.

 

	
13.

	
TERM, TERMINATION, AND MODIFICATION OF RIGHTS

 

	
  

	
13.1

	
This Agreement is effective when signed by all parties, unless the provisions of Paragraph 14.16 are not fulfilled, and shall extend to the expiration of the last to expire of the Licensed Patent Rights unless sooner terminated as provided in this Article 13.

 

	
  

	
13.2

	
In the event that Licensee is in default in the performance of any material obligations under this Agreement, including but not limited to the obligations listed in Paragraph 13.5, and if the default has not been remedied within ninety (90) days after the date of notice in writing of the default, PHS may terminate this Agreement by written notice and pursue outstanding royalties owed through procedures provided by the Federal Debt Collection Act.

 

	
  

	
13.3

	
In the event that Licensee becomes insolvent, files a petition in bankruptcy, has such a petition filed against it, determines to file a petition in bankruptcy, or receives notice of a third party’s intention to file an involuntary petition in bankruptcy, Licensee shall immediately notify PHS in writing. Furthermore, PHS shall have the right to terminate this Agreement immediately upon Licensee’s receipt of written notice.

 

	
  

	
13.4

	
Licensee shall have a unilateral right to terminate this Agreement or any licenses in any country or territory by giving PHS sixty (60) days written notice to that effect.

 

	
  

	
13.5

	
PHS shall specifically have the right to terminate or modify, at its option, this Agreement, if PHS determines that the Licensee:

 

	
  

	
(a)

	
is not executing the Commercial Development Plan submitted with its request for a license and the Licensee cannot otherwise demonstrate to PHS’ satisfaction that the Licensee has taken, or can be expected to take within a reasonable time, effective steps to achieve Practical Application of the Licensed Products or Licensed Processes;

 

	
  

	
(b)

	
has not achieved the Benchmarks as may be modified under Paragraph 9.2;

 

	
  

	
(c)

	
has willfully made a false statement of, or willfully omitted a material fact in the license application or in any report required by this Agreement;

 

	
  

	
(d)

	
has committed a material breach of a covenant or agreement contained in this Agreement;

 

	
  

	
(e)

	
is not keeping Licensed Products or Licensed Processes reasonably available to the public after commercial use commences;

 

	
  

	
(f)

	
cannot reasonably satisfy unmet health and safety needs; or

 

	
  

	
(g)

	
cannot reasonably justify a failure to comply with the domestic production requirement of Paragraph 5.2 unless waived.

 

	
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13.6

	
In making the determination referenced in Paragraph 13.5, PHS shall take into account the normal course of such commercial development programs conducted with sound and reasonable business practices and judgment and the annual reports submitted by Licensee under Paragraph 9.2. Prior to invoking termination or modification of this Agreement under Paragraph 13.5, PHS shall give written notice to Licensee providing Licensee specific notice of, and a ninety (90) day opportunity to respond to, PHS’ concerns as to the items referenced in 13.5(a)-13.5(g). If Licensee fails to alleviate PHS’ concerns as to the items referenced in 13.5(a)-13.5(g) or fails to initiate corrective action to PHS’ satisfaction, PHS may terminate this Agreement.

 

	
  

	
13.7

	
When the public health and safety so require, and after written notice to Licensee providing Licensee a sixty (60) day opportunity to respond, PHS shall have the right to require Licensee to grant sublicenses to responsible applicants, on reasonable terms, in any Licensed Fields of Use under the Licensed Patent Rights, unless Licensee can reasonably demonstrate that the granting of the sublicense would not materially increase the availability to the public of the subject matter of the Licensed Patent Rights. PHS shall not require the granting of a sublicense unless the responsible applicant has first negotiated in good faith with Licensee.

 

	
  

	
13.8

	
PHS reserves the right according to 35 U.S.C. §209(d)(3) to terminate or modify this Agreement if it is determined that this action is necessary to meet the requirements for public use specified by federal regulations issued after the date of the license and these requirements are not reasonably satisfied by Licensee.

 

	
  

	
13.9

	
Within thirty (30) days of receipt of written notice of PHS’ unilateral decision to modify or terminate this Agreement, Licensee may, consistent with the provisions of 37 C.F.R. §404.11, appeal the decision by written submission to the designated PHS official. The decision of the designated PHS official shall be the final agency decision. Licensee may thereafter exercise any and all administrative or judicial remedies that may be available.

 

	
  

	
13.10

	
Within ninety (90) days of expiration or termination of this Agreement under this Article 13, a final report shall be submitted by Licensee. Any royalty payments, including those incurred but not yet paid (such as the full minimum annual royalty), and those related to patent expense, due to PHS shall become immediately due and payable upon termination or expiration. If terminated under this Article 13, sublicensees may elect to convert their sublicenses to direct licenses with PHS pursuant to Paragraph 4.3. Unless otherwise specifically provided for under this Agreement, upon termination or expiration of this Agreement, Licensee shall return all Licensed Products or other materials included within the Licensed Patent Rights to PHS or provide PHS with certification of the destruction thereof. Licensee may not be granted additional PHS licenses if the final reporting requirement is not fulfilled.

 

	
14.

	
GENERAL PROVISIONS

 

	
  

	
14.1

	
Neither party may waive or release any of its rights or interests in this Agreement except in writing. The failure of the Government to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement shall not constitute a waiver of that right by the Government or excuse a similar subsequent failure to perform any of these terms or conditions by Licensee.

 

	
  

	
14.2

	
This Agreement constitutes the entire agreement between the parties relating to the subject matter of the Licensed Patent Rights, Licensed Products and Licensed Processes, and all prior negotiations, representations, agreements, and understandings are merged into, extinguished by, and completely expressed by this Agreement.

 

	
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14.3

	
The provisions of this Agreement are severable, and in the event that any provision of this Agreement shall be determined to be invalid or unenforceable under any controlling body of law, this determination shall not in any way affect the validity or enforceability of the remaining provisions of this Agreement.

 

	
  

	
14.4

	
If either party desires a modification to this Agreement, the parties shall, upon reasonable notice of the proposed modification by the party desiring the change, confer in good faith to determine the desirability of the modification. No modification shall be effective until a written amendment is signed by the signatories to this Agreement or their designees.

 

	
  

	
14.5

	
The construction, validity, performance, and effect of this Agreement shall be governed by Federal law as applied by the Federal courts in the District of Columbia.

 

	
  

	
14.6

	
All Agreement notices required or permitted by this Agreement shall be given by prepaid, first class, registered or certified mail or by an express/overnight delivery service provided by a commercial carrier, properly addressed to the other party at the address designated on the following Signature Page, or to another address as may be designated in writing by the other party. Agreement notices shall be considered timely if the notices are received on or before the established deadline date or sent on or before the deadline date as verifiable by U.S. Postal Service postmark or dated receipt from a commercial carrier. Parties should request a legibly dated U.S. Postal Service postmark or obtain a dated receipt from a commercial carrier or the U.S. Postal Service. Private metered postmarks shall not be acceptable as proof of timely mailing.

 

	
  

	
14.7

	
This Agreement shall not be assigned or otherwise transferred (including any transfer by legal process or by operation of law, and any transfer in bankruptcy or insolvency, or in any other compulsory procedure or order of court) except to Licensee’s Affiliate(s) or purchaser without the prior written consent of PHS. The parties agree that the identity of the parties is material to the formation of this Agreement and that the obligations under this Agreement are nondelegable. In the event that PHS approves a proposed assignment, Licensee shall pay PHS, as an additional royalty, one percent (1%) of the fair market value of any consideration received for any assignment of this Agreement within sixty (60) days of the assignment.

 

	
  

	
14.8

	
Licensee agrees in its use of any PHS-supplied materials to comply with all applicable statutes, regulations, and guidelines, including PHS and HHS regulations and guidelines. Licensee agrees not to use the materials for research involving human subjects or clinical trials in the United States without complying with 21 C.F.R. Part 50 and 45 C.F.R. Part 46. Licensee agrees not to use the materials for research involving human subjects or clinical trials outside of the United States without notifying PHS, in writing, of the research or trials and complying with the applicable regulations of the appropriate national control authorities. Written notification to PHS of research involving human subjects or clinical trials outside of the United States shall be given no later than sixty (60) days prior to commencement of the research or trials.

 

	
  

	
14.9

	
Licensee acknowledges that it is subject to and agrees to abide by the United States laws and regulations (including the Export Administration Act of 1979 and Arms Export Control Act) controlling the export of technical data, computer software, laboratory prototypes, biological material, and other commodities. The transfer of these items may require a license from the appropriate agency of the U.S. Government or written assurances by Licensee that it shall not export these items to certain foreign countries without prior approval of this agency. PHS neither represents that a license is or is not required or that, if required, it shall be issued.

 

	
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14.10

	
Licensee agrees to mark the Licensed Products or their packaging sold in the United States with all applicable U.S. patent numbers and similarly to indicate “Patent Pending” status. All Licensed Products manufactured in, shipped to, or sold in other countries shall be marked in a manner to preserve PHS patent rights in those countries.

 

	
  

	
14.11

	
By entering into this Agreement, PHS does not directly or indirectly endorse any product or service provided, or to be provided, by Licensee whether directly or indirectly related to this Agreement. Licensee shall not state or imply that this Agreement is an endorsement by the Government, PHS, any other Government organizational unit, or any Government employee. Additionally, Licensee shall not use the names of NIH, FDA, PHS, or HHS or the Government or their employees in any advertising, promotional, or sales literature without the prior written approval of PHS.

 

	
  

	
14.12

	
The parties agree to attempt to settle amicably any controversy or claim arising under this Agreement or a breach of this Agreement, except for appeals of modifications or termination decisions provided for in Article 13. Licensee agrees first to appeal any unsettled claims or controversies to the designated PHS official, or designee, whose decision shall be considered the final agency decision. Thereafter, Licensee may exercise any administrative or judicial remedies that may be available.

 

	
  

	
14.13

	
Nothing relating to the grant of a license, nor the grant itself, shall be construed to confer upon any person any immunity from or defenses under the antitrust laws or from a charge of patent misuse, and the acquisition and use of rights pursuant to 37 C.F.R. Part 404 shall not be immunized from the operation of state or Federal law by reason of the source of the grant.

 

	
  

	
14.14

	
Any formal recordation of this Agreement required by the laws of any Licensed Territory as a prerequisite to enforceability of the Agreement in the courts of any foreign jurisdiction or for other reasons shall be carried out by Licensee at its expense, and appropriately verified proof of recordation shall be promptly furnished to PHS.

 

	
  

	
14.15

	
Paragraphs 4.3, 8.1, 9.5-9.7, 12.1-12.5, 13.9, 13.10, 14.12 and 14.15 of this Agreement shall survive termination of this Agreement.

 

	
  

	
14.16

	
The terms and conditions of this Agreement shall, at PHS’ sole option, be considered by PHS to be withdrawn from Licensee’s consideration and the terms and conditions of this Agreement, and the Agreement itself to be null and void, unless this Agreement is executed by the Licensee and a fully executed original is received by PHS within sixty (60) days from the date of PHS signature found at the Signature Page.

 

SIGNATURES BEGIN ON NEXT PAGE

 

	
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PHS PATENT LICENSE AGREEMENT - EXCLUSIVE

 

SIGNATURE PAGE

 

For PHS:

 

	
/s/ Richard U. Rodriguez

	  	
8-19-11

	 
	
Richard U. Rodriguez

	  	
Date

	 
	
Director, Division of Technology Development and Transfer

	  	  	 
	
Office of Technology Transfer

	  	  	 
	
National Institutes of Health

	
  

	  	 

 

Mailing Address or E-mail Address for Agreement notices and reports:

 

Chief, Monitoring & Enforcement Branch

Office of Technology Transfer

National Institutes of Health

6011 Executive Boulevard, Suite 325

Rockville, Maryland 20852-3804 U.S.A.

 

E-mail: LicenseNotices_Reports@mail.nih.gov

 

For Licensee (Upon, information and belief, the undersigned expressly certifies or affirms that the contents of any statements of Licensee made or referred to in this document are truthful and accurate.):

 

by:

 

	
/s/ Jim Schutz

	  	
22 Aug 2011

	 
	
Signature of Authorized Official

	  	
Date

	 
	  	  	  	 
	
Jim Schutz

	  	  	 
	
Printed Name

	  	  	 
	  	  	  	 
	
COO

	  	  	 
	
Title

	  	  	 

 

	  	
I.

	
Official and Mailing Address for Agreement notices:

	  
	  	  	  	  
	  	  	
Jim Schutz

	  
	  	  	
Name

	  
	  	  	  	  
	  	  	
Chief Operating Officer

	  
	  	  	
Title

	  
	  	  	  	  
	  	  	
Mailing Address

	  

 

	
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1129 No. McDowell Blvd.

	  
	  	  	  
	  	
Petaluma, CA 94954

	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

 

	 	
Email Address:

	
jschutz@oculusis.com

	 
	 	  	  	 
	 	
Phone:

	
(707) 283-0550

	 
	 	  	  	 
	 	
Fax:

	
(707) 283-0551

	 

 

	  	
II.

	
Official and Mailing Address for Financial notices (Licensee’s contact person for royalty payments)

	  	  	  	  
	  	  	
Jim Schutz

	  
	  	  	
Name

	  
	  	  	  	  
	  	  	
Chief Operating Officer

	  
	  	  	
Title

	  
	  	  	  	  
	  	  	
Mailing Address:

	  
	  	  	  	  
	  	  	
1129 No. McDowell Blvd.

	  
	  	  	  	  
	  	  	
Petaluma. CA 94954

	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  

 

	 	
Email Address:

	
jschutz@oculusis.com

	 
	 	  	  	 
	 	
Phone:

	
(707) 283-0550

	 
	 	  	  	 
	 	
Fax:

	
(707) 283-0551

	 

 

Any false or misleading statements made, presented, or submitted to the Government, including any relevant omissions, under this Agreement and during the course of negotiation of this Agreement are subject to all applicable civil and criminal statutes including Federal statutes 31 U.S.C. §§3801-3812 (civil liability) and 18 U.S.C. §1001 (criminal liability including fine(s) or imprisonment).

 

	
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APPENDIX A – PATENT(S) OR PATENT APPLICATION(S)

 

Patent(s) or Patent Application(s):

 

U.S. Patent 7,503,238

 

	
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APPENDIX B – LICENSED FIELDS OF USE AND TERRITORY

 

	
I.

	
Licensed Fields of Use:

 

	
  

	
Endotracheal tube mucus cleaning devices

 

	
II.

	
Licensed Territory:

 

	
  

	
Worldwide

 

	
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APPENDIX C – ROYALTIES

 

Royalties:

 

	
I.

	
Licensee agrees to pay to PHS a noncreditable, nonrefundable license issue royalty in the amount of [  ]* U.S. Dollars (USD$[  ]*) within sixty (60) days from the effective date of this Agreement.

 

	
II.

	
Licensee agrees to pay to PHS a nonrefundable minimum annual royalty in the amount of [  ]* U.S. Dollars (USD$[  ]*) as follows:

 

	
  

	
(a)

	
The first minimum annual royalty is due within sixty (60) days of the effective date of this Agreement and may be prorated according to the fraction of the calendar year remaining between the effective date of this Agreement and the next subsequent January 1; and

 

	
  

	
(b)

	
Subsequent minimum annual royalty payments are due and payable on January 1 of each calendar year and may be credited against any earned royalties due for sales made in that year.

 

	
III.

	
Licensee agrees to pay PHS earned royalties on Net Sales made by or on behalf of Licensee and its sublicensee as follows:

 

	
  

	
(a)

	
[  ]* Percent ([  ]*%) on aggregate Net Sales of up to and including Five Million U.S. Dollars ($5,000,000); and

 

	
  

	
(b)

	
[  ]* Percent ([  ]*%) on aggregate Net Sales above Five Million and One U.S. Dollars ($5,000,001).

 

	
IV.

	
Licensee agrees to pay PHS a Benchmark royalty of [  ]* U.S. Dollars (USD$[  ]*) within sixty (60) days of achieving 510(K) approval of a Licensed Product.

 

	
V.

	
Licensee agrees to pay PHS additional sublicensing royalties of [  ]* percent ([  ]*%) on the fair market value of any consideration received for granting each sublicense within sixty (60) days of the execution of each sublicense. For the avoidance of doubt, Licensee’s outsourcing or subcontracting of the manufacturing of a Licensed Product shall not constitute a sublicense.

 

	
VI.

	
With regard to unreimbursed expenses associated with the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the Licensed Patent Rights and paid by PHS prior to the effective date of this Agreement, Licensee shall pay PHS, as an additional royalty of [  ]* U.S. Dollars (USD$[  ]*) within sixty (60) days of PHS’ submission of a statement and request for payment to Licensee.

 

	
VII.

	
With regard to unreimbursed expenses associated with the prosecution and maintenance of all patent applications and patents included within the Licensed Patent Rights and paid by PHS on or after the effective date of this Agreement, PHS may require Licensee to pay PHS on an annual basis, within sixty (60) days of PHS’ submission of a statement and request for payment, a royalty amount equivalent to these unreimbursed expenses paid during the previous calendar year(s).

 

	
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* Confidential material redacted and separately filed with the Commission.

 

  

 

  

 

APPENDIX D – BENCHMARKS AND PERFORMANCE

 

Licensee agrees to the following Benchmarks for its performance under this Agreement and, within thirty (30) days of achieving a Benchmark, shall notify PHS that the Benchmark has been achieved.

 

	
I.

	
Licensee shall commence clinical evaluation of a Licensed Product by June 30, 2012.

 

	
II.

	
Licensee shall apply for 510(K) regulatory approval of a Licensed Product by March 31, 2013.

 

	
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APPENDIX E – COMMERCIAL DEVELOPMENT PLAN

 

	
  

	
·

	
Coordinate and manage all clinical and animal trials and background work necessary to obtain US FDA, CE Mark, Japanese MOHW and other appropriate regulatory notified bodies approval(s).

	
  

	
·

	
Licensee anticipates that US FDA clearance (or approval) would likely take 12-18 months from execution this license,

	
  

	
°

	
CE Mark approval would likely take 18 - 24 months or so from date of execution of a licensing agreement,

	
  

	
·

	
Coordinate and manage all post-approval clinical work necessary to adequately market and sell the Licensed Product.

	
  

	
·

	
Upon receipt of the appropriate regulatory approvals, sell the Licensed Product in the US via existing 70+ person sales force.

 

Ventilator associated-pneumonia (VAP) data points (Market Analysis):

	
  

	
·

	
Each year 1.7M patients require mechanical ventilation in the US, with average of 6.9

	
  

	
·

	
days on ventilator;

	
  

	
·

	
VAP is the 2nd most common nosocomial infection; 15% of all hospital acquired infections

	
  

	
·

	
VAP Incidence = 9-70% of patients on ventilators

	
  

	
·

	
9,080-patient study found that the average VAP patient spends:

	
  

	
°

	
9.6 additional days on mechanical ventilation,

	
  

	
°

	
6.1 extra days in the ICU, and

	
  

	
°

	
11.5 more days in the hospital

	
  

	
·

	
Mortality = 13% to 55%

	
  

	
·

	
VAP added costs = $40,000 - $50,000 per stay - all paid for by the hospital

	
  

	
·

	
Addressable market for patients on ventilators:

	
  

	
°

	
1,700,000 patients per year

	
  

	
°

	
$25 per Product

	
  

	
°

	
$42.5M addressable market

 

	
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APPENDIX F – EXAMPLE ROYALTY REPORT

 

Required royalty report information includes:

 

	
·

	
OTT license reference number (L-XXX-200X/0)

	
·

	
Reporting period

	
·

	
Catalog number and units sold of each Licensed Product (domestic and foreign)

	
·

	
Gross Sales per catalog number per country

	
·

	
Total Gross Sales

	
·

	
Itemized deductions from Gross Sales

	
·

	
Total Net Sales

	
·

	
Earned Royalty Rate and associated calculations

	
·

	
Gross Earned Royalty

	
·

	
Adjustments for Minimum Annual Royalty (MAR) and other creditable payments made

	
·

	
Net Earned Royalty due

Example

	
Catalog Number

	 	
Product Name

	 	
Country

	 	
Units Sold

	 	 	
Gross Sales

	 
	  	 	 	 	  	 	 	 	 	
(US$)

	 
	
1

	 	A	 	
US

	 	 	250	 	 	 	62,500	 
	
1

	 	A	 	
UK

	 	 	32	 	 	 	16,500	 
	
1

	 	A	 	
France

	 	 	25	 	 	 	15,625	 
	
2

	 	B	 	
US

	 	 	0	 	 	 	0	 
	
3

	 	C	 	
US

	 	 	57	 	 	 	57,125	 
	
4

	 	D	 	
US

	 	 	12	 	 	 	1,500	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Total Gross Sales  	 	 	 	
153,250

	 
	 	 	 	 	 	 	 	
Less Deductions:

	 	 	 	 	 
	 	 	 	 	 	 	 	Freight 	 	 	 	3,000	 
	 	 	 	 	 	 	 	Returns 	 	 	 	7,000	 
	 	 	 	 	 	 	 	Total Net Sales  	 	 	 	143,250	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Royalty Rate 	 	 	 	8	%
	 	 	 	 	 	 	 	Royalty Due	 	 	 	11,460	 
	 	 	 	 	 	 	 	Less Creditable Payments	 	 	 	10,000	 
	 	 	 	 	 	 	 	Net Royalty Due 	 	 	 	1,460	 

 

	
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APPENDIX G – ROYALTY PAYMENT OPTIONS

 

The OTT License Number MUST appear on payments, reports and correspondence.

Automated Clearing House (ACH) for payments through U.S. banks only 

The NIH encourages our licensees to submit electronic funds transfer payments through the Automated Clearing House (ACH).  Submit your ACH payment through the U.S. Treasury web site located at:  https://www.pay.gov.  Locate the "NIH Agency Form" through the Pay.gov "Agency List".

Electronic Funds Wire Transfers

The following account information is provided for wire payments.  In order to process payment via Electronic Funds Wire Transfer sender MUST supply the following information within the transmission:

Drawn on a U.S. bank account via FEDWIRE should be sent directly to the following account:

	 	
Beneficiary Account: 

	
Federal Reserve Bank of New York or TREAS NYC

	 	
Bank: 

	
Federal Reserve Bank of New York

	 	
ABA# 

	
021030004

	 	
Account Number: 

	
75080031

	 	
Bank Address: 

	
33 Liberty Street, New York, NY 10045

	 	
Payment Details:

	
License Number (L-XXX-XXXX)

Name of Licensee

Drawn on a foreign bank account should be sent directly to the following account.  Payment must be sent in U.S. Dollars (USD) using the following instructions:

	 	
Beneficiary Account:

	
Federal Reserve Bank of New York/ITS or FRBNY/ITS

	 	
Bank:

	
Citibank N.A. (New York)

	 	
SWIFT Code:

	
CITIUS33

	 	
Account Number:

	
36838868

	 	
Bank Address:

	
388 Greenwich Street, New York, NY 10013

	 	
Payment Details (Line 70):

	
NIH 75080031

License Number (L-XXX-XXXX)

Name of Licensee

	 	
Detail of Charges (line 71a):

	
Charge Our

 

 

	
A-204-2011

	  	  
	  	  	  
	
CONFIDENTIAL

	  	  
	
PHS Patent License Agreement–Exclusive

	  	  
	
Model 10-2005 (updated 8-2010) Page 24 of 25

	
Oculus Innovative Sciences, Inc.

	
Date Printed: August 17, 2011

 

  

  

  

Checks

All checks should be made payable to “NIH Patent Licensing”

Checks drawn on a U.S. bank account and sent by US Postal Service should be sent directly to the following address:

National Institutes of Health (NIH)

P.O. Box 979071

St. Louis, MO 63197-9000

Checks drawn on a U.S. bank account and sent by overnight or courier should be sent to the following address:

US Bank

Government Lockbox SL-MO-C2GL

1005 Convention Plaza

St. Louis, MO 63101

Phone: 314-418-4087

Checks drawn on a foreign bank account should be sent directly to the following address:

National Institutes of Health (NIH)

Office of Technology Transfer

Royalties Administration Unit

6011 Executive Boulevard

Suite 325, MSC 7660

Rockville, Maryland 20852

 

 

	
A-204-2011

	  	  
	  	  	  
	
CONFIDENTIAL

	  	  
	
PHS Patent License Agreement–Exclusive

	  	  
	
Model 10-2005 (updated 8-2010) Page 25 of 25

	
Oculus Innovative Sciences, Inc.

	
Date Printed: August 17, 2011a50052587ex101.htm

 

Exhibit 10.1

 

 

Exhibit 10.1: Form of Change In Control Agreement between Hampden Bank, Hampden Bancorp, Inc. and the individuals listed below

 

Hampden Bancorp, Inc. and Hampden Bank voted to enter into change in control agreements with the individuals listed below for a period of one year. The agreements are substantially identical in all material respects (except as noted below) as the attached Form of Change in Control Agreement.

 

Parties to Change In Control Agreement:

 

Hampden Bancorp, Hampden Bank and Richard L. DeBonis

 

Hampden Bancorp, Hampden Bank and William D. Marsh, III

 

Hampden Bancorp, Hampden Bank and Robert A. Massey

 

Hampden Bancorp, Hampden Bank and Robert J. Michel (1)

 

Hampden Bancorp, Hampden Bank and Sheryl L. Shinn

 

Hampden Bancorp, Hampden Bank and Craig W. Kaylor

 

Hampden Bancorp, Hampden Bank and Lynn Stevens Bunce

 

 

 

	  	
(1)

	
Mr. Michel’s Change In Control Agreement is substantially identical to Exhibit 10.1 except as to the lump-sum cash payment upon termination, which is equal to two (2) times the Employee’s average “Annual Compensation” over the five most recently completed calendar years.

 

  

  

  

 

CHANGE IN CONTROL AGREEMENT

 

 

This Change in Control Agreement (the “Agreement”) is made and entered into by and between                                     (the “Employee”), HAMPDEN BANK, a Massachusetts-chartered savings bank, with its principal administrative office at 19 Harrison Avenue, Springfield, MA  01102 (the “Bank”), and HAMPDEN BANCORP, INC., a corporation organized under the laws of the State of Delaware, the holding company for the Bank (the “Holding Company”), effective as of January 1, 2012 (the “Effective Date”).

 

WHEREAS, it is expected that the Bank and/or the Holding Company from time to time will consider the possibility of an acquisition by another company or other change in control. The Board of Directors of the Bank (the “Board”) recognizes that such consideration can be a distraction to the Employee and can cause the Employee to consider alternative employment opportunities. The Board has determined that it is in the best interests of the Bank and its shareholders to assure that the Bank will have the continued dedication and objectivity of the Employee, notwithstanding the possibility, threat or occurrence of a Change in Control (as defined below) of the Bank or the Holding Company.

 

WHEREAS, the Board believes that it is in the best interests of the Bank and its shareholders to provide the Employee with an incentive to continue her employment and to motivate the Employee to maximize the value of the Bank upon a Change in Control for the benefit of its shareholders.

 

WHEREAS, the Board believes that it is imperative to provide the Employee with certain severance benefits upon Employee’s termination of employment following a Change in Control that provides the Employee with enhanced financial security and provides incentive and encouragement to the Employee to remain with the Bank notwithstanding the possibility of a Change in Control.

 

NOW, THEREFORE, in consideration of the mutual promises, terms, provisions, and conditions contained in this Agreement, the parties hereby agree as follows:

 

1.  Term of Agreement.  The initial term of this Agreement shall commence as of the Effective Date and shall continue for one (1) year.  The Board may extend the term of this Agreement for successive one (1) year periods at the end of the initial term, in its discretion.

 

2.  At-Will Employment.  The Bank and the Employee acknowledge that the Employee’s employment is and shall continue to be at-will, as defined under Massachusetts law at the time of the execution of this Agreement. If the Employee’s employment terminates (a) for any reason before a Change in Control (defined below), (b) for Cause (defined below) following a Change in Control, (c) without Good Reason (defined below) following a Change in Control, or (d) as a result of the Employee’s Death or Disability (defined below), the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement or as may otherwise be available in accordance with the Bank’s established employee plans and practices or pursuant to other agreements with the Bank.

 

  

  

  

 

3.  Payments in Connection with a Change in Control.

 

(a)       For purposes of this Agreement, a “Change in Control” shall mean any of the following events:

 

(1) Merger. The Bank or the Holding Company merges into or consolidates with another entity, or merges another corporation into the Bank or Holding Company, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Bank or the Holding Company immediately before the merger or consolidation;

 

(2) Acquisition of Significant Share Ownership. There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Bank or the Holding Company’s voting securities, but this clause (ii) shall not apply to beneficial ownership of Bank or Holding Company voting shares held in a fiduciary capacity by an entity of which the Bank or the Holding Company directly or indirectly beneficially owns 50% or more of its outstanding voting securities.

 

(3) Change in Board Composition. During any period of two consecutive years, individuals who constitute the Bank’s or the Holding Company’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Bank’s or the Holding Company’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the members) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or

 

(4) Sale of Assets. The Bank or the Holding Company sells to a third party all or substantially all of its assets.

 

(5) Tender Offer. A tender offer is made for 25% or more of the voting securities of the Bank or the Holding Company.

 

(b)       For purposes of this Agreement, “Termination for Cause” shall mean termination because of, in the good faith determination of the Board, Employee’s:

 

(1) Act of dishonesty, falsification of Bank or Holding Company documents, or other intentional misrepresentation related to business matters of the Bank or the Holding Company;

 

(2) Incompetence;

 

(3) Willful misconduct or action in bad faith;

 

  

  

  

 

(4) Breach of fiduciary duty;

 

(5) Failure to substantially perform her stated duties and obligations to the Bank, including, but not limited to, one or more acts of gross negligence;

 

(6) Willful violation of any law, rule, or regulation (other than traffic violations or similar offenses) that reflects adversely on the reputation of the Bank or the Holding Company, any felony conviction, any violation of law involving moral turpitude, or any violation of a final cease-and-desist order;

 

(7) Commission of any tortious act, unlawful act or malfeasance that causes or reasonably could cause harm to the Bank or the Holding Company;

 

(8) Material breach of any provision of this Agreement, or the written policies of the Bank and/or Holding Company (including, but not limited to the Hampden Bank Code of Ethics and Conflict of Interest Policy); and/or

 

(9) Violation of the Securities Act of 1933 or the Securities Exchange Act of 1934.

 

(c)       For purposes of this Agreement, “Good Reason” shall exist if, without Employee’s express written consent, the Bank or the Holding Company materially breaches any of its obligations under this Agreement. Such a material breach shall be deemed to occur upon any of the following:

 

(1) A material reduction in Employee’s responsibilities or authority in connection with her employment with the Bank or the Holding Company;

 

(2) Following a Change in Control, any material reduction in salary or benefits below the amounts Employee was entitled to receive before the Change in Control; or

 

(3) A requirement that Employee relocate her principal business office or her principal place of residence outside of the area consisting of a thirty-five (35) mile radius from the current main office of the Bank and any branch of the Bank, or the assignment to Employee of duties that would reasonably require such a relocation.

 

Notwithstanding the foregoing, a reduction or elimination of Employee’s benefits under one or more benefit plans maintained as part of a good faith, overall reduction or elimination of such plans or benefits, applicable to all participants in a manner that does not discriminate against Employee (except as such discrimination may be necessary to comply with law), will not constitute an event of Good Reason or a material breach of this Agreement, provided that benefits of the same type or to the same general extent as those offered under such plans before the reduction or elimination are not available to other officers of the Bank or any affiliate under a plan or plans in or under which Employee is not entitled to participate.

 

(d)       For purposes of this Agreement, “Disability” shall have the same meaning given to such term under the Bank’s Long-Term Disability plan as in effect from time to time, or, if no such plan is then in effect, the meaning described in Section 22(c)(3) of the Internal Revenue Code (the “Code”).

 

  

  

  

 

(e)       In the event that, upon a change in ownership or control within the meaning of Section 409A(a)(2)(A)(v) of the Code, Employee is offered employment with the Bank or its successor that is comparable in terms of compensation and responsibilities, and Employee stays for six (6) months after the change in ownership or control is completed, Employee shall receive a lump sum payment in the amount of three (3) months base salary.

 

(f)       Termination. If within the period ending two (2) years after a Change in Control, (i) the Bank or the Holding Company terminates Employee’s employment Without Cause (defined in Section 3(b)), or (ii) Employee voluntarily terminates her employment With Good Reason (defined in Section 3(c)), the Bank will pay Employee, not later than ten (10) calendar days after the date of termination of Employee’s employment:

 

(1)  Employee’s base salary through the effective date of termination, and payment for any accrued but unpaid compensation;

 

(2)  one lump-sum cash payment equal to one (1) times Employee’s average “Annual Compensation” over the five (5) most recently completed calendar years, ending with the year immediately preceding the effective date of the Change in Control. In determining Employee’s average “Annual Compensation”, “Annual Compensation” will include base salary and any other taxable income including, but not limited to, amounts related to the granting, vesting or exercise of restricted stock or stock option awards, commissions, bonuses, retirement benefits, director or committee fees and fringe benefits paid or accrued for Employee’s benefit. Annual compensation will also include profit sharing, Employee stock ownership plan and other retirement contributions or benefits, including to any tax-qualified plan or arrangement (whether or not taxable) made or accrued on behalf of Employee for such year; and

 

(3) directly, or by reimbursing the Employee for, the monthly premium for continuation coverage under the Bank’s health, dental and disability insurance plans, to the same extent that such insurance is provided to persons currently employed by the Bank, provided that the Employee makes a timely election for such continuation coverage under the Consolidate Omnibus Budget Reconciliation Act of 1985 (“COBRA”).  The “qualifying event” under COBRA shall be deemed to have occurred on the termination date.  The Bank’s obligation under this paragraph shall end 18 months after the termination date or at such earlier date as the Employee becomes eligible for comparable coverage under another employer’s group coverage.  The Employee agrees to notify the Bank promptly and in writing of any new employment and to make full disclosure to the Bank of the health and dental insurance coverage available to her through such new employment.

 

(g)       Voluntary Resignation; Termination For Cause.  If the Employee’s employment terminates by reason of the Employee’s voluntary resignation (and is not for Good Reason), or if the Employee is terminated for Cause, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Bank’s then existing severance and benefits plans and practices or pursuant to other written agreements with the Bank.

 

  

  

  

 

(h)       Disability; Death.  If the Bank terminates the Employee’s employment as a result of the Employee’s Disability, or such Employee’s employment is terminated due to the death of the Employee, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Bank’s then existing severance and benefits plans and practices or pursuant to other written agreements with the Bank.

 

4.  Limitation on Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to the Employee (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 4, would be subject to the excise tax imposed by Section 4999 of the Code, then the Employee’s severance benefits shall be either:

 

(a)  delivered in full, or

 

(b)  delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal. state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by the Employee on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Bank and the Employee otherwise agree in writing, any determination required under this Section 4 shall be made in writing by the Bank’s independent public accountants immediately prior to Change in Control (the “Accountants”), whose determination shall be conclusive and binding upon the Employee and the Bank for all purposes. For purposes of making the calculations required by this Section 1, the accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Bank and the Employee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Bank shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 4.  

 

5.  Confidentiality and Non-Solicitation.

 

(a)       Confidentiality.

 

(1)  “Confidential Information” is information however delivered, disclosed, or discovered during the term of Employee’s employment, which Employee has, or in the exercise of ordinary prudence should have, reason to believe is confidential, or which the Bank designates as confidential including, but not limited to:

 

(i)       Bank Information:  Bank or Holding Company proprietary information, technical data, trade secrets or know-how, including, but not limited to: research, processes,  pricing strategies, communication strategies, sales strategies, sales literature, sales contracts, product plans, products, inventions, methods, services, computer codes or instructions, software and software documentation, equipment, costs, customer lists, business studies, business procedures, finances and other business information disclosed to Employee by the Bank or the Holding Company, either directly or indirectly in writing, orally or by drawings or observation of parts or equipment and such other documentation and information as is necessary in the conduct of the business of the Bank and/or the Holding Company; and

 

  

  

  

 

(ii)      Third Party Information:  confidential or proprietary information received by the Bank or the Holding Company from third parties.

 

(2)  The Bank’s failure to mark any of the Confidential Information as confidential or proprietary will not affect its status as Confidential Information.  

 

(3) Employee also agrees that the terms, conditions and subject matter of this Agreement are considered Confidential Information.

 

(4) Confidential Information does not include information that has ceased to be confidential by reason of any of the following: (i) was in Employee’s possession prior to the date of his or her initial employment with the Bank, provided that such information is not known by Employee to be subject to another confidentiality agreement with, or other obligation of secrecy to, the Bank, the Holding Company, or another party; (ii) is generally available to the public and became generally available to the public other than as a result of a disclosure in violation of this Agreement; (iii) became available to Employee on a non-confidential basis from a third party, provided that such third party is not known by Employee to be bound by a confidentiality agreement with, or other obligation of secrecy to, the Bank, the Holding Company, or another party or is otherwise prohibited from providing such information to Employee by a contractual, legal or fiduciary obligation; or (iv) Employee is required to disclose pursuant to applicable law or regulation (as to which information, Employee will provide the Bank with prior notice of such requirement and, if practicable, an opportunity to obtain an appropriate protective order).

 

(5)  Employee shall not, either during or after the termination of his or her employment with the Bank, communicate or disclose to any third party the substance or content of any Confidential Information (defined above), or use such Confidential Information for any purpose other than the performance of Employee’s obligations hereunder.  Employee acknowledges and agrees that any Confidential Information obtained by Employee during the performance of his or her employment concerning the business or affairs of the Bank, or any subsidiary, affiliate or joint venture of the Bank is the property of the Bank, or such subsidiary, affiliate or joint venture of the Bank, as the case may be.  

 

(6)  Employee agrees to return all Confidential Information, including all copies and versions of such Confidential Information (including, but not limited to, information maintained on paper, disk, CD-ROM, network server, or any other retention device whatsoever) and other property of the Bank, to the Bank within two (2) business days of his or her separation from the Bank (regardless of the reason for the separation).

 

  

  

  

 

(7) Recognition of Good Will. Employee further recognizes and acknowledges that in the course of employment she is and will be introduced to customers and others with important relationships to the Bank. Employee acknowledges and agrees that any and all “goodwill” associated with any existing or prospective customer, account or business partner belongs exclusively to the Bank including, but not limited to, any goodwill created as a result of direct or indirect contacts or relationships between Employee and any existing or prospective customers, accounts, business partners and other key relationships of the Bank.    

 

         (b)        Non-Solicitation. In view of the covenants above, and as a material inducement to the Bank to enter into this Agreement and to pay to Employee the compensation stated in Section 3, Employee agrees that during her employment and for a period of six (6) months thereafter (the “Non-Solicitation Period”), Employee shall not, either individually or on behalf of or through any third party, directly or indirectly, engage in the following activities:

 

(1) Customer, Client and Vendor Non-Solicitation. Solicit, divert, appropriate or take away, or attempt to solicit, divert, appropriate or take away, the business or patronage of any of the clients, customers or vendors of the Bank that were clients, customers or vendors of the Bank while Employee was employed by the Bank and that were serviced by Employee, or prospective clients, customers or vendors with which Employee had written or oral communications while Employee was employed by the Bank.  

 

(2) Employee Non-Solicitation. Hire, retain, recruit, entice, induce, solicit or encourage any employee or consultant to terminate their employment with, or otherwise cease their relationship with, the Bank or its parent, subsidiaries or affiliates. This section 5(c)(2) shall prohibit the aforesaid actions by Employee with respect to any person both while such person is a current employee or consultant of the Bank or such related entities, and for the ninety (90) day period after such person’s employment or consultancy with the Bank terminates.

 

The terms of this Section 5 of the Agreement are in addition to, and not in lieu of, any other contractual, statutory or common law obligations that Employee may have relating to the protection of the Bank’s Confidential Information or its property.  The terms of this section shall survive indefinitely Employee’s employment with the Bank, provided that the Confidential Information of the Bank remains confidential and is not a matter of public knowledge.

 

6.  Post-Termination Obligations. Any and all payments and benefits due to Employee under this Agreement are subject to her compliance with Section 5 of this Agreement.  Upon a good faith finding by the Board that Employee breached Section 5 of this Agreement, the Bank shall be excused from making any and all payments under this Agreement and Employee shall return to the Bank all previous payments made to her under this Agreement.

 

7.  Successors.  

 

          (a) Successor to Bank.  The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business or assets of the Bank or the Holding Company, expressly and unconditionally to assume and agree to perform the Bank’s obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place.

 

  

  

  

 

          (b) Successor to the Employee.  Neither this Agreement nor any right or interest hereunder will be assignable or transferable by the Employee, her beneficiaries or legal representatives, except by will or by the laws of descent and distribution.  This Agreement will inure to the benefit of and be enforceable by the Employee’s legal personal representative.

 

8.  Notices.

 

          All notices, requests, demands and other communications in connection with this Agreement shall be made in writing and shall be deemed to have been given when delivered by hand or 48 hours after mailing at any general or branch United States Post Office, by registered or certified mail, postage prepaid, addressed to the Bank at its principal business offices and to Employee at her home address as maintained in the records of the Bank.

 

9.  Source of Payments.  All payments provided in this Agreement shall be paid in from the general funds of the Bank. In the event, however, that the Bank is unable to make such payments to the Employee, such amounts shall be paid or provided by the Holding Company.

 

10.  Miscellaneous Provisions.

 

                      (a)  No Duty to Mitigate.  The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Employee may receive from any other source.

 

                      (b)  Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Bank (other than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. Further, the Bank’s waiver of its right to enforce similar conditions or provisions in another employee’s agreement (employment or other) shall not operate as a waiver of its right to enforce any of the conditions or provisions in this Agreement.

 

                     (c)  Entire Agreement.  This Agreement constitutes the entire agreement of the parties hereto and supersedes in their entirety all prior undertakings and agreements of the parties.

 

 (d)  Choice of Law; Enforceability; Waiver of Jury Trial.

 

                    (1)       The Law of Massachusetts Applies to this Agreement. This Agreement and all transactions contemplated by this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to principles of conflicts of law.

 

                    (2)        Any Dispute Regarding This Agreement Will Take Place In Massachusetts. The Parties agree that this Agreement shall be enforced by the Business Litigation Session of the Massachusetts Superior Court located in Suffolk County, which retains exclusive jurisdiction and venue for any actions or proceedings, demand, claim or counterclaim relating to, or arising under, the terms and provisions of this Agreement, or to its breach. The Parties further acknowledge that material witnesses and documents would be located in Massachusetts.

 

  

  

  

 

                      (e)  Severability.  If a court of competent jurisdiction determines that any portion of this Agreement is illegal, invalid or unenforceable, then that portion shall be considered to be removed from the Agreement and it shall not affect the legality, validity or enforceability of the remainder of the Agreement and the remainder of the Agreement shall continue in full force and effect.  Similarly, if the scope of any restriction or covenant contained herein should be or become too broad or extensive to permit enforcement thereof to its full extent, then the court is specifically authorized by the parties to enforce any such restriction or covenant to the maximum extent permitted by law, and Employee hereby consents and agrees that the scope of any such restriction or covenant may be modified accordingly in any judicial proceeding brought to enforce such restriction or covenant.

 

 

                      (f)  Withholding.  All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes.

 

 

                      (g)  Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

 

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

 

 

 

 

 

 

  

  

  

 

SIGNATURES

 

 

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement on _________, 2011.

 

	
ATTEST:

	  	
HAMPDEN BANK

	  	  	  	  
	  	  	
By:

	  
	
Corporate Secretary

	  	  	
For the Entire Board of Directors

	  	  	  	  
	  	  	  	  
	
ATTEST:

	  	
HAMPDEN BANCORP, INC.

	  	  	  	  
	  	  	
By:

	  
	
Corporate Secretary

	  	  	
For the Entire Board of Directors

	  	  	  	  
	  	  	  	  
	
WITNESS:

	  	
EMPLOYEE:

	  	  	  	  
	  	  	  
	
Corporate Secretary

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