Document:

accelr87312010exh101.htm

Exhibit 10.1

EVALUATION AGREEMENT

This Evaluation Agreement (the “Agreement”) is made by and between [***] (“[***]”), and Accelr8 Technology Corporation, a corporation having its address at 7000 North Broadway, Building 3-307, Denver, Colorado 80221 (“Accelr8”), effective as of 14 June, 2010 (“Effective Date”), as follows:

 

WHEREAS:

 

 

	
A.  

	
[***] is engaged in the business of discovering, developing, manufacturing, marketing and selling diagnostic products;

 

	
B.  

	
Accelr8 is engaged in the business of discovering, validating and developing quantitative bacterial  diagnostics systems that can be used directly by healthcare professionals;

 

	
C.  

	
In reliance upon that skill, knowledge and experience, the parties wish to perform an Evaluation of how reproducibly Accelr8’s materials and technology can determine the identification, quantitation, and antibiotic resistance testing of bacterial pathogens for the purpose of evaluating the potential of a future business collaboration between the parties using Accelr8’s clinical assay technology;

 

	
D.  

	
Both parties also wish to ensure, and each party agrees, that any confidential information disclosed by one to the other, now or in the future, should be subject to the restrictions on disclosure and use contained in this Agreement.

 

NOW THEREFORE, for and in consideration of the mutual covenants and agreements set forth in this Evaluation Agreement, the parties agree as follows:

1.           Definitions.

	
  

	
“Data” means the results of the Evaluation, including but not limited to interim and final written Evaluation reports.

	
  

	 

	
  

	
“Evaluation” means the evaluation more fully described in the Evaluation Plan.

	
  

	
“Evaluation Plan” means the written description of the Evaluation attached hereto as Exhibit A and incorporated herein.

	
  

	
“Company Materials” means the materials and sequences thereof (either in numerical or alpha arrangement or a combination thereof) or technology specifically described in Exhibit B,  together with (i) any part, progeny, mutant or hybrid thereof, (ii) any nucleic acid or other genetic material derived therefrom, (iii) any vector particles derived therefrom, and any progeny, derivatives or modifications of any such vector particles, (iv) any copy, complement or transcription or expression product thereof, (v) any combination of any of the foregoing with other substances (other than [***] Materials), (vi) any related biological material and associated know-how and data that Accelr8 provides to [***].

 

Page 1 of 10

 

[***]Confidential Treatment Requested

 

  

  

  

 

	
  

	
“Principal Investigator” means [***] for [***].

	
  

	
“Publication” means any public presentation or publication regarding the Evaluation or the Data.

2.           Evaluation.  [***] wishes to perform the Evaluation as more fully described in the Evaluation Plan.  In conducting the Evaluation, the parties will take the following actions:

(a)           Principal Investigators.  The Evaluation shall be performed under the direction of the Principal Investigator.

 

(b)           Company Materials. Accler8 shall provide sufficient quantities of Company Materials to [***] to enable performance of the Evaluation solely for [***]’ use in the Evaluation and not for any other purpose, nor may [***] take, send or allow Company Materials received to be provided to any third party, without obtaining Accler8’s prior written approval.  Upon termination or expiration of this Agreement, or upon written request, [***] shall destroy any unconsumed Company Materials and any progeny, portions or derivatives thereof remaining in its possession.

(c)           Data.  The parties shall freely share with each other all Data generated in the course of the Evaluation.  In addition, each party shall, upon reasonable request of the other party from time to time during the course of the Evaluation, provide the requesting party a written summary of the results of the providing party’s Evaluation activities to date.  In addition, if mutually agreed upon, each party shall provide the other with a final written report of the results of its performance of the Evaluation within ten (10) business days after the conclusion or termination of the Evaluation.

(e)           Expenses.  [***] agrees to pay Accler8 a total of [***] for Accelr8’s commitment to costs and expenses associated with the performance of its obligations hereunder payable within fifteen (15) business days of the Effective Date.

3.           Ownership and Use of Materials and Data.

(a)           Company Materials.  Accler8 shall solely own all right, title and interest in and to the Company Materials.  [***] shall use the Company Materials solely for purposes of carrying out the Evaluation, and shall not take, send or otherwise provide the Company Materials to any third party without Accelr8’s prior written approval.

(c)           Data.  Neither party may disclose the Data to any third party without the other party’s prior written approval.

4.           Confidentiality, Non-Use Obligations and Data Privacy.

(a)           Confidential Information.  During the course of the Evaluation, [***] and Accler8 may each disclose confidential and/or proprietary information, including but not limited to each party’s proprietary materials and technologies, economic information, business or research strategies, trade secrets and material embodiments thereof (each party’s “Confidential Information”), to the other solely for the purpose of carrying out the Evaluation.

 

Page 2 of 10

 

[***]Confidential Treatment Requested

 

  

  

  

(b)           Confidentiality and Non-Use.  For a period of seven (7) years following either the expiration or termination of this Agreement, the recipient shall maintain the disclosing party’s Confidential Information in confidence.  The recipient shall use the disclosing party’s Confidential Information solely for its performance of the Evaluation, unless otherwise mutually agreed in writing.

(c)           Exclusions.  The recipient’s obligations of confidentiality and non-use shall not apply to any information that: (i) is shown by contemporaneous documentation of the recipient to have been in its rightful possession prior to receipt from the disclosing party; (ii) is or becomes, through no fault of the recipient, publicly known; (iii) is furnished to the recipient by a third party without breach of a duty to the disclosing party; (iv) is independently developed by the recipient without access to the disclosing party’s Confidential Information; or (v) such disclosure is required by applicable law, provided that the disclosing party has received advance notice of the proposed disclosure by the recipient.

(d)           No Receipt of Third Party Confidential Information.  Neither party shall disclose to the other party any confidential information obtained from a third party on a confidential basis unless the disclosing party has obtained written permission from such third party to do so, or the information is in the public domain.

(e)           Data Protection (Privacy).  Personal information including Accelr8 employee names, addresses, qualifications, relevant experience (clinical trial or otherwise), financial information relating to, among other matters, compensation and reimbursement payments, and other personal data may be collected and processed for administrative purposes in connection with the Evaluation.  The information is being collected to conduct the Evaluation and will also be used for administrative purposes such as to process communications or payments if any. The information will not be publicly published, publicly attributed to Accelr8’s employees, or shared with or disclosed to any other party except those directly involved with the [***] operations, or to such parties involved in the technical administration and maintenance of any database which will house the information.

Consent is sought to gather this personal information which will be processed in the United States and other European Union (EU) and European Economic Area (EEA) countries by [***].  It will be stored in either an automated or manual database. The United States, like some other non-European Union locations, provides a level of privacy protection that is not as stringent as that in the European Union. Privacy and data protection laws and regulations vary from country to country.

[***] will provide sufficient technical security and organizational measures to protect the information against accidental or unlawful destruction or accidental loss, alteration, unauthorized disclosure or access.

In order to review the data, to amend or correct it, to request to have the information cleared from the database, or to have questions answered relating to the information or to a database, you may contact [***] at [***].IntegrityCompliance@[***].com or at the following [***] address:

Integrity & Compliance

[***]

[***]

Page 3 of 10

 

[***]Confidential Treatment Requested

  

  

  

The information will be kept in accordance with the [***] Records and Retention Policy for the requisite length of time and method of destruction.

By signing this agreement Accelr8 agrees that the information provided above will be collected and processed. Accler8’s employees have the right, upon reasonable notice; to obtain a complete extract of the information stored which pertains to such Accelr8 employee and/or to request the correction and/or the deletion of any such stored information without providing any reasons.

5.           Intellectual Property.

(a)           Internal Use License.  Subject to each party’s obligations, during the term of the Evaluation each party shall have a co-exclusive, royalty-free license, without the right to sublicense, to use the Data solely for the purpose of negotiating a potential strategic or collaborative agreement between Accler8 and [***].  Nothing contained within this Agreement shall impose an obligation to negotiate or enter into any future agreement.

(b)           No Implied Rights in Intellectual Property.  Except as expressly set forth in Article 5(a) hereof, nothing herein shall be deemed to grant to either [***] or Accler8 any rights under the other party’s patents, patent applications, know-how (whether patentable or unpatentable) or other intellectual property rights of the other party.  Accler8 may not use the Data, or any information derived therefrom for any products or processes or for profit-making or commercial purposes, including the filing of patent applications relating to the Data, or their use, without [***]’ prior written permission.

6.           Publications.  Neither [***] nor Company shall make any Publication without providing the text of the proposed Publication to the other party at least sixty (60) days prior to submission thereof to a publisher or any third party and obtaining the written consent of the other to such Publication in the form provided to it.  In the case of an oral presentation, the term “text” will refer to an abstract setting forth all material information to be covered by the oral presentation.  Within this period, at [***]’ request, the Publication shall be delayed for a maximum of ninety (90) days from initial disclosure in order to protect the potential patentability of any Invention described therein.  In no event shall either party disclose any Confidential Information of the other party in any Publication.  The parties shall, in any Publication, consider joint authorship and acknowledge the contributions and publications of the other as scientifically appropriate.

7.           Representations and Warranties.  Each party represents and warrants to the other party as follows:

(a)           Such party has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  The execution, delivery and performance by such party of this Agreement has been duly and validly authorized, and no additional authorization or consent is required in connection with the execution, delivery and performance by such party of this Agreement.

 

Page 4 of 10

 

[***]Confidential Treatment Requested

 

 

  

  

  

(b)           This Agreement has been duly executed and delivered by such party and constitutes a valid and legally binding obligation of such party, enforceable in accordance with its terms.

(c)           Such party shall use all Company Materials received from the other party in compliance with all applicable laws and regulations, including, where applicable, those relating to the treatment of laboratory animals and NIH guidelines pertaining to biological materials, and shall not use any such Company Materials in humans. Such party represents and warrants that it shall perform the Evaluation with reasonable due care and in conformity with current generally accepted standards and procedures, and that it is the responsibility of its management to establish appropriate quality assurance, quality controls and review procedures.  Such party also represents and warrants that it complies with, and, in performing its duties under this Agreement it shall comply in all material respects with Good Laboratory Practices (GLPs), and all other applicable laws, codes, regulations, rules, decrees, orders and the like of any applicable governmental authority.

8.           Limited Warranty.  Acceler8 warrants and represents that (i) it owns and/or has the right to transfer to [***], Company Materials and perform as provided under this Agreement, and (ii) as of the Effective Date the Company Materials are not, to the best of its knowledge, the subject of any pending, imminent, or threatened litigation or dispute.   Unless otherwise set forth in this Agreement, COMPANY MATERIALS ARE PROVIDED WITHOUT WARRANTY OF ANY SORT, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY.  IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOSS OF PROFITS, LOSS OF USE, OR ANY OTHER CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

9.           Notices. Routine notices of conditions or situations affecting the Evaluation will be given in writing between the Principal Investigators of each party.  All other notices will be given in writing and delivered by mail or facsimile to the parties as follows:

To [***]:                                                      To Company:

[***]                                                      Accelr8 Technology Corporation

[***]                                                      7000 North Broadway, Building 3-307

[***]                                                      Denver, Colorado 80221

Attention: [***]                                  Attention: David Howson

10.           Indemnification.  To the fullest extent permitted by applicable law, each party shall indemnify the other party and such other party’s directors, officers, employees, agents and representatives from and against any and all demands, claims, losses, liabilities, damages, costs, and expenses whatsoever (including, without limitation, reasonable fees and disbursements of counsel), sustained or incurred under this Agreement by an indemnified party if and to the extent resulting from any action or omission of the indemnifying party or any of its officers, employees, agents or representatives.

 

Page 5 of 10

 

[***]Confidential Treatment Requested

 

 

  

  

  

(a) Procedure.  The indemnified party shall promptly notify the indemnifying party of any claim or suit giving rise to its obligations hereunder and permit the indemnifying party to assume sole direction and control of the defense of the claim (including the reasonable selection of counsel) with the right to reasonably settle such action in its sole discretion, provided that such settlement does not impose any material obligation on the indemnified party (including compromising its intellectual property rights) or any admission of fault of the indemnified party.  The indemnified party will reasonably cooperate as requested, at the expense of the indemnifying party, in the defense of the action.

11.           Term; Termination.  The term of this Agreement (the “Term”) shall begin on the Effective Date and end on October 30, 2010 unless extended by mutual written consent.  Either party may terminate this Agreement upon thirty (30) days prior written notice to the other party.  Upon termination or expiration of this Agreement, unless otherwise mutually agreed, both parties shall destroy all Data, except that each party may retain one (1) copy of the Data in its legal archives for the sole purpose of monitoring its obligations hereunder.  Each recipient shall, at the providing/disclosing party’s option, either return or destroy any of the other party’s Confidential Information remaining in its possession.

12.           Survival.  The provisions of Articles 3, 4, 5, 6, 8 and 10 shall survive termination or expiration of this Agreement.

13.           Independent Contractors; Use of Names.  The parties shall perform this Agreement in the capacity of independent contractors.  Neither party, nor their respective employees, consultants or representatives, shall be considered employees, partners, or agents of the other party.  Neither party may make any representations or commitments on the other party’s behalf, nor use the other party’s name or trademarks in any public disclosure, without the named party’s prior written consent.  Accler8 shall comply with all instructions given by [***] employees while on [***]’ premises, shall wear a [***] visitor’s badge above the waist and in plain sight at all times while working within the limits of [***] facilities, and shall promptly report any missing badges to [***].

14.           Corporate Citizenship.  [***] gives preference to third parties who share its societal and environmental values, as set forth in the [***]’s Corporate Citizenship Third Party Code (http://www.corporatecitizenship.[***].com/downloads/business-conduct/[***]_TP_Code.pdf) and incorporated by reference.  Accordingly, Accler8 represents and warrants that this Agreement will be performed in material compliance with all applicable laws and regulations, including without limitation, laws and regulation relating to health, safety and the environment, fair labor practices and unlawful discrimination.

15.           Assignment.  This Agreement may not be assigned or transferred without the prior written consent of both parties, which consent shall not be unreasonably withheld; provided, however, [***] may freely assign this Agreement to any person or entity who acquires all or substantially all of its business or assets (or of the business division or product line of such party to which the Evaluation primarily relates).

 

Page 6 of 10

 

[***]Confidential Treatment Requested

 

 

  

  

  

16.           Waiver and Severability.  No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.  This Agreement shall be interpreted as a whole and neither for or against either party, in accordance with their common meaning, but taking into account the nature of the project to be rendered and the standards and responsibilities of the parties as professionals rendering those project activities as herein specified.  In the event of a conflict between the provisions in the body of this Agreement and any Exhibits, the terms in the body of this Agreement shall control.  The terms of this Agreement are severable, and if any term of this Agreement is determined to be invalid or unenforceable under any controlling body of law, such invalidity or non-enforceability shall not in any way affect the validity or enforceability of the remaining terms or the validity or enforceability of those terms in any jurisdiction where they are valid and enforceable.  The parties desire the terms herein to be valid and enforced to the maximum extent not prohibited by law, regulation or court order in a given jurisdiction and as such, any invalid or unenforceable terms will be reformed by the parties to effectuate the intent of the parties as evidenced on the Effective Date.

17.           Smoke Free Policy.   [***] has adopted a smoke-free policy to provide a healthier environment for employees and visitors.  The policy provides that smoking is not permitted at any time on or at any [***] U.S. site and applies to all companies, subcontractors and agents visiting or providing services on or at [***] U.S. premises (“Smoke Free Policy”).  Each party shall ensure that its employees, subcontractors, agents and representatives observe the Smoke Free Policy at all times while on or at [***]’ U.S. premises.  Failure to comply with the Smoke Free Policy may result in the offending individual(s) being directed to leave the premises.

16.           Entire Agreement; Amendment.  This Agreement is the entire agreement of the parties relating to the subject matter hereof.  It may not be amended or modified except in a writing signed by both [***] and Company.

17.           Governing Law.  This Agreement shall be governed by, and construed in accordance with the laws of the State of [***] without regard to its choice of law principles.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

 

Page 17of 10

 

[***]Confidential Treatment Requested

 

 

  

  

  

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in multiple counterparts by their duly authorized representatives.

	
[***]

[***]

 

By:  _________________________________

Authorized Representative

Name: ________________________________

 

Title:   ________________________________

 

Date: ________________________________

 

	
ACCELR8 TECHNOLOGY CORPORATION

 

 

By:     ________________________________

           Authorized Representative

Name: ________________________________

 

Title:   ________________________________

 

Date:   ________________________________

 

 

 

Page  of 10

 

[***]Confidential Treatment Requested

  

  

  

EXHIBIT A

Evaluation Plan

Quantitative bacterial detection

[***] is interested in the performance and accuracy of bacterial and fungal detection from clinical specimens against microbiological culture methods.

Based on ongoing clinical research studies that Accelr8 has initiated, [***] will evaluate the results of the BACcel system in identifying the type and quantity of bacterial pathogens in these specimens.

Evaluate the range of specimens the BACcel system can utilize including, but not limited to, [***].

Antibiotic ResistanceResistance Phenotype Testing

The BACcel system has the capability to evaluate a range of antibiotic compound to determine pathogen resistance (or susceptibility). Based on ongoing clinical research studies that Accelr8 has initiated, [***] will evaluate the results of the BACcel system in determining resistance phenotypes.

Platform (Hardware/Software/Disposable) Investigation

Accelr8 has developed prototype instrumentation, disposables and software to enable the analysis, identification and preparation of clinical specimens towards determining bacterial content and resistance phenotypes. [***] will evaluate the system components towards establishing a target product profile and development plan for a diagnostic system.

 

Page 9 of 10

 

[***]Confidential Treatment Requested

  

  

  

EXHIBIT B

Company Materials

	
·  

	
Genomic DNA or lysed pathogens from a range of organisms covering [***].

	
·  

	
Proprietary technology for the BACcel platform.

 

 

 

Page 10 of 10

 

[***]Confidential Treatment Requestedaccelr87312010exh102.htm

Exhibit 10.2

 

LETTER OF INTENT

 

 

This Letter of Intent (“LOI”) is made and entered into as of 14 June 2010 (the “Effective Date”) by and between [***], a Delaware corporation, with offices at [***], together with its affiliates (“[***]”), and Accelr8 Technology Corporation, a company incorporated in Colorado, with offices located at 7000 North Broadway, Building 3-307, Denver, Colorado 80221 (“Accelr8”); jointly as the “Parties” and individually as a “Party.”

 

WHEREAS [***] is engaged in the business of developing, manufacturing, and commercializing diagnostic products;

 

WHEREAS Accelr8 is engaged in the business of discovering, validating and developing quantitative bacterial diagnostics systems that can be used directly by healthcare professionals;

 

WHEREAS the Parties seek to enter into a potential business collaboration between the Parties using [***]’ development and commercialization resources and Accelr8’s BACcelTM technology;

 

WHEREAS it is the desire of the Parties to identify ways to significantly accelerate the evaluation, development, and feasibility testing of Accelr8’s BACcelTM technology with the goal of having the first human diagnostic product ready for commercialization no later than 2012;

 

NOW THEREFORE, [***] and Accelr8 agree as follows:

 

 

CLAUSE 1 – NEGOTIATION OF BUSINESS AGREEMENT

 

The Parties have or will shortly conduct a research evaluation under an Evaluation Agreement currently under negotiation.  The Parties also commenced initial discussions regarding further research and joint business structures.  The Parties now wish to establish the scope, intent and potential to formalize a business relationship.

 

Pursuant to the terms of this LOI, the Parties will continue good faith negotiations with the intent to agree on business terms for a formal business relationship and definitive agreement within one hundred and sixty (160) days from the Effective Date set forth above.

 

The intent of the Parties is to structure a business relationship that will use the respective design, development, commercialization and support strengths of each of the Parties.

 

This LOI is an expression of interest of the Parties.  No portion of this LOI shall be construed as a commitment or binding obligation of either of the Parties to enter into a further agreement of any kind.

 

This LOI is not intended to grant, and shall not grant, either Party a license in or to any intellectual property of the other Party.

 

 

Page 1 of 5

 

[***]Confidential Treatment Requested

 

  

  

  

CLAUSE 2 – FIELD/INITIAL AREAS OF INTEREST

 

The term “Field”, as used in this LOI, is defined as the use of bacterial and fungal pathogens from a range of organisms covering human infectious diseases, the Accelr8 BACcelTM platform system and directly related technologies (antibiotic resistance testing) owned or controlled by Accelr8 for screening and detection of disease in humans for the purposes of diagnosis, prediction, monitoring, and treatment selection.

 

The “Initial Areas of Interest” is defined as methods for the detection, identification, classification and quantification in humans of infectious disease states (including without limitation assays and instrument systems to detect, identify and quantify certain bacterial and or fungal infections in sputum or other human specimens).

 

Initial Areas of Interest specifically includes infectious diseases, typically represented by hospital acquired infections.

 

 

CLAUSE 3 – EXCLUSIVITY AND REMUNERATION

 

Accelr8 grants to [***] the exclusive right to evaluate and negotiate a license to Accelr8 Intellectual Property (defined below) and/or other strategic agreement with Accelr8 for commercializing Accelr8 Intellectual Property, beginning on the Effective Date of this Agreement and continuing for a period of [***] consecutive calendar months after the submission of the Research Results in the final research report (the “Exclusive License Period”).  This exclusivity obligation shall extend to any rights in the Field held by Accelr8 in or to intellectual property arising out of work performed by Accerl8 or sponsored by Accelr8 but performed by third parties, including without limitation, work performed at Washington University in St. Louis (“WUSTL”) School of Medicine and/or with the Denver Health and Hospital Authority (“DHHA”) as that work is directly related to the Field (collectively, “Accelr8 Intellectual Property”).  At any time during the Exclusive License Period, the Parties may, by amendment to this LOI, include or exclude any area of interest from the Field.  The Parties agree to meet, or discuss, on a monthly basis, possible areas of interest for inclusion or exclusion from the Field.

 

During the Exclusive License Period Accelr8 shall negotiate with [***] V&D in good faith regarding a definitive agreement with respect to such Accelr8 Intellectual Property.  Accelr8 guarantees the right of [***] V&D during the term of this LOI to offer a strategic relationship for Accelr8 Intellectual Property, regardless of any offers made to Accelr8 by any third party.

 

Except to the extent necessary to conduct day-to-day business and product development during the Exclusive License Period, Accelr8 will not, directly or indirectly, and will cause its affiliates and its and their respective directors, officers, employees, members, managers, agents, advisors and representatives not to provide to third parties non-public information relating to or in connection with the Field. Such day-to-day business and product development activities will not encumber the property rights owned or controlled by Accelr8 primarily used in the Field.

 

In consideration of Accelr8’s grant to [***] of the exclusive rights described above, [***] shall compensate Accelr8 in an amount not to exceed [***] payable on a monthly basis at [***] per month for a maximum duration of five months.  [***] shall make its first monthly payment of [***] within fifteen (15) days from the Effective Date (the “Initial Payment”).  Upon written mutual agreement of the Parties, [***] shall have the right to extend the Exclusive License Period by up to three additional thirty (30) day periods upon notice and payment to Accelr8 of [***] for each such period (collectively, the “Additional Payments” and together with the Initial Payment and monthly compensation thereafter, the “Exclusivity Payments”).  The Exclusivity Payments, if any, shall be fully creditable against any license fee, development milestone or other payments to be made by [***] to Accelr8 at any point in the future, excepting a court judgment of damages.

 

Page 2 of 5

 

[***]Confidential Treatment Requested

 

 

  

  

  

 

CLAUSE 4 – TYPE OF COLLABORATION

 

The Parties intend to investigate, evaluate and determine the optimal operational framework, proposed roles and responsibilities, and deal economics.  They acknowledge that their respective commercial objectives regarding this opportunity must be accessed for both synergies and conflicts.  For instance, Accelr8 brings specific abilities in the areas of instrument system development, related technology, and method of use of intellectual property.  [***] brings specific abilities in the area of product development, regulatory approval, and commercial sales.

 

Although the terms of a definitive agreement are to be determined, the Parties recognize that an advantageous business relationship could comprise a research, development and commercialization agreement for the Field.  Potential business structures may include a development and commercialization agreement as well as the establishment of a separate legal entity in which both Parties could hold equity interest.

 

 

CLAUSE 5 – CONFIDENTIALITY

 

During the course of discussion, [***] and Accelr8 will each disclose confidential and/or proprietary information, including but not limited to each Party’s proprietary materials and technologies, economic information, business or research strategies, trade secrets and material embodiments thereof (each Party’s “Confidential Information”), to the other.

 

For a period of seven (7) years following the Effective Date, the recipient shall, and shall cause its affiliates and its and their respective directors, officers, employees, members, managers, agents, advisors and representatives to, maintain the disclosing Party’s Confidential Information in confidence.  The recipient shall use the disclosing Party’s Confidential Information solely for its evaluation of research and business discussions as provided in this LOI.

 

The existence and contents of this LOI are subject to the restrictions on disclosure and use set forth in this Clause 5.

 

The recipient’s obligations of confidentiality and non-use shall not apply to any information that: (i) is shown by contemporaneous documentation of the recipient to have been in its rightful possession prior to receipt from the disclosing Party; (ii) is or becomes, through no fault of the recipient, publicly known; (iii) is furnished to the recipient by a third party without breach of a duty to the disclosing Party; (iv) is independently developed by the recipient without access to the disclosing Party’s Confidential Information; or (v) such disclosure is required by applicable law, provided that the disclosing Party has received advance notice of the proposed disclosure by the recipient.

 

 

Page 3 of 5

 

[***]Confidential Treatment Requested

 

 

  

  

  

 

Neither Party shall disclose to the other Party any confidential information obtained from a third party on a confidential basis unless the disclosing Party has obtained written permission from such third party to do so, or the information is in the public domain.

 

The receiving Party may, after written notice and consultation with the disclosing Party, make disclosures to the extent such disclosures are required by law or the requirements of any securities exchange on which the Party’s securities are traded.

 

The Parties acknowledge that neither the disclosing Party, nor any of its respective employees, directors, officers, attorneys, representatives, agents, affiliates or advisors makes any representation or warranty, express or implied, as to the accuracy or completeness of the Confidential Information.  The Parties agree that neither the disclosing Party, nor any of their respective employees, directors, officers, representatives, stockholders, agents, affiliates or advisors shall have any liability relating to or resulting from the use of the Confidential Information, except to the extent as may be agreed in any definitive agreement between the Parties.

 

In the event that a receiving Party is required by applicable law, regulation or legal process to disclose any of the confidential Information or other derivative information, the receiving Party agrees (to the extent permitted by law) to notify the disclosing Party so that disclosing Party may seek a protective order or other appropriate remedy or, in its sole discretion waive compliance with the terms of this Clause 5.  In the event that no such protective order or other remedy is obtained, or that the disclosing Party waives compliance with the terms of this Clause 5, the receiving Party agrees to furnish only that portion of the Confidential Information or such other information which is legally required to be disclosed and to exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded the Confidential Information.

 

It is understood and agreed that monetary damages would not be an adequate remedy for any breach of this Clause 5 and that disclosing Party shall be entitled to seek equitable relief, including injunction and specific performance, as a remedy for any such breach.  Such remedies shall not be deemed to be the exclusive remedies for a breach but shall be in addition to all other remedies available.  The rights of each Party under this Clause 5: (i) may be exercised as often as necessary; (ii) are cumulative and not exclusive of rights or remedies provided by law; and (iii) may be waived only in writing and specifically.  Delay in exercising or non-exercise of any such right is not a waiver of that right.

 

Nothing in this Clause 5 shall prevent the Parties from disclosing Confidential Information to any affiliate or advisor who has a need to know to facilitate either Party’s negotiation and evaluation of the relationship contemplated under this LOI and is subject to at least as protective of confidentiality obligations as contained herein.

 

 

Page 4 of 5

 

[***]Confidential Treatment Requested

 

 

  

  

  

CLAUSE 6 – BINDING EFFECT

 

With the exception of Clause 3 and Clause 5, this LOI is legally binding on the Parties only to negotiate in good faith towards entering into a definitive agreement based on the terms under discussion, but does not contain a legally binding obligation to proceed with or to consummate an agreement, which will only arise, if at all, upon the negotiation, execution and delivery of a definitive agreement.  Notwithstanding the above, Clause 3 – Exclusivity and Remuneration, and Clause 5 – Confidentiality are binding on the Parties, subject to the terms set forth therein.

 

This LOI may be terminated for material breach by the non-breaching Party.  In the case of breach of Clause 3 or Clause 5 of this LOI by Accelr8, all Exclusivity Payments shall be refunded to [***] within thirty (30) days of termination by [***].  Clause 5 shall survive any termination or expiration of this LOI.

 

This LOI shall be governed in all respects by the laws of the State of [***] and the Parties hereby submit to the venue and jurisdiction of any state or federal court located in [***].

 

 

CLAUSE 7 – CONCLUSION

 

The Parties execute this LOI as of the Effective Date indicated above to express their willingness to continue discussions during the Exclusive License Period as described above.

 

 

	
[***]

 

 

By: _________________________________

[***]

 

	
ACCELR8 TECHNOLOGY CORPORATION

 

By: _________________________________

David Howson

President

 

 

 

Page 5 of 5

 

[***]Confidential Treatment Requested

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]