Document:

Patent and Know-How License, dated December 14, 2001

 Exhibit 10.19 
  
 PATENT AND KNOW-HOW LICENCE 
  

CAMBRIDGE DISPLAY TECHNOLOGY LIMITED (1) 
  
 AND 
  
 COVION ORGANIC SEMICONDUCTORS GMBH (2) 
  
 CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED FROM THIS DOCUMENT. SUCH OMISSIONS ARE NOTED BY “[**]”. AN UNREDACTED VERSION OF THIS DOCUMENT
HAS BEEN SUBMITTED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION. 

 PATENT AND KNOW HOW LICENCE 
  
 THIS AGREEMENT is made the 14th day of December 2001 between: 
  

	(1)	CAMBRIDGE DISPLAY TECHNOLOGY LIMITED a company incorporated in England whose registered office is situated at Greenwich House, Madingley Rise, Madingley Road, Cambridge,
England (“CDT”); and 

  

	(2)	COVION ORGANIC SEMICONDUCTORS GMBH, a company incorporated in Germany whose principal place of business is situated at Industriepark Hoechst, Gebaude G864, D-65926, Frankfurt
am Main, Germany (“Covion”). 

  
 RECITALS:

  

	(A)	CDT is the registered proprietor of certain patents and patent applications and/or has rights to, or may be able to obtain rights to, certain other patents and patent applications,
in either case relating to organic semiconductors. 

  

	(B)	CDT has developed and owns certain methods and know-how that it believes are secret, technical and useful in the exploitation of organic semiconductors. 

  

	(C)	CDT and Covion have agreed that CDT should grant Covion licences under certain patents and patent applications (and seek to grant Covion sub-licences under certain other patents
and/or patent applications) and the right to use the methods and know-how on, and subject to, the terms and conditions set out below. 

  
 IT IS HEREBY AGREED AS FOLLOWS: 
  

	1.	DEFINITIONS 

  

	1.1	In this Agreement including its Schedules, the headings are included for ease of reference only and shall not affect its interpretation and the following terms shall have the
following meanings unless the context otherwise requires: 

  
 “Affiliate” means, at the relevant time, any business entity which controls, is controlled by or is under common control with the business entity referred to but in each case only for so long as such
control or common control relationship exists; for the purposes of this definition a business entity shall be deemed to “control” another business entity if it owns, directly or indirectly, in excess of 50% of the outstanding voting
securities or capital stock of such business entity or other comparable equity or ownership interest with respect to a business entity other than a corporation. 

 “Assigned Patent” means patent application WO 00/55927 (together with the rights to all
patents claiming priority therefrom including associated or national regional patents and continuations thereof) which patent application includes the claims listed in Schedule 1 to this Agreement. 
  
 “Avecia Group Company” means Avecia Limited (a company
incorporated in England with company number 3730853) or any Affiliate of Avecia Limited. 
  
 “CDT Group Company” means CDT or any Affiliate of CDT. 
  
 “Confidential Information” means all confidential information disclosed by one party or any of its Affiliates (“the Disclosing
Party”) to the other party or any of its Affiliates (“the Receiving Party”) pursuant to this Agreement in written, verbal or any other form, including, without limitation, data, know-how, formulae, compositions, designs,
photographs, drawings, specifications, software programs, samples, any product made using the samples and any other material bearing or incorporating any information relating to such information. 
  
 “Contract Research Agreement” means the contract research
agreement of even date herewith between CDT International Limited and Covion 
  
 “Covion Group Company” means Covion or any Affiliate of Covion. 
  
 “Covion Licensee” means any Covion Group Company, any Avecia Group Company, any Relevant Joint Venture of any Covion Group Company and/or
any Relevant Joint Venture of any Avecia Group Company. 
  
 “Covion OLEM Products” means conjugated polymeric OLEMs (other than PLEMs) or formulations containing conjugated polymeric OLEMs (other than PLEMs) sold pursuant to a supply agreement for use in the Field. 
  
 “Covion OSC Products” means organic semiconductors or
formulations containing organic semiconductors sold pursuant to a supply agreement for use outside the Field where the sale or any other aspect of the exploitation of such organic semiconductors or formulations containing organic semiconductors by
Covion or any Covion Licensee or by a direct customer of Covion or any Covion Licensee has taken place in a country in which such sale or other aspect of the exploitation falls within any of the then still valid claims licensed to Covion under a
Patent covering that country in accordance with this Agreement or falls within any of: 
  

	 	(a)	the then still valid claims in a patent covering that country owned by Covion for an invention covered by Clause 7.5 of the Contract Research Agreement; or 

 

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	 	(b)	the know-how owned by Covion for an invention which is considered to be equivalent to a patent in that country pursuant to Clause 7.5 of the Contract Research Agreement.

  
 “Covion Products” means Covion
OLEM Products and/or Covion OSC Products. 
  
 “Devices” means devices containing organic semiconductors. 
  
 “Dow” means Dow Chemical Corporation whose principal place of business is situated at 2030 Building, Midland, M1 48674, USA; and “Dow Group Company” means Dow or any Affiliate of Dow;

  
 “Effective Date” means the date of this
Agreement. 
  
 “Existing Know-How” means all
know-how, experience, drawings and all other technical information of any CDT Group Company (or to which any CDT Group Company has relevant rights) that was developed prior to the Effective Date and which: 
  

	 	(i)	relates to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors), Relevant Materials, formulations containing organic
semiconductors generally (as distinct from specific classes or types of organic semiconductors), formulations containing Relevant Materials and the uses of organic semiconductors generally (as distinct from specific classes or types of organic
semiconductors), Relevant Materials and/or such formulations (including, without limitation, processes for the manufacture of any of the foregoing) but not to the extent it relates to or concerns the design, development or fabrication of Devices;

  

	 	(ii)	might reasonably be of commercial interest in the design, manufacture or supply of organic semiconductors generally (as distinct from specific classes or types of organic
semiconductors), Relevant Materials and/or such formulations; 

  

	 	(iii)	as a body or in the precise configuration and assembly of its components is not generally known or easily accessible; and 

  

	 	(iv)	was not developed or otherwise acquired pursuant to or as part of a preexisting relevant business by a CDT Group Company at any time before it became an Affiliate of CDT.

  

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 “Existing Patents” means the patents and/or patent applications owned or to be owned by
any CDT Group Company or to which any CDT Group Company has/will have relevant rights which enable such CDT Group Company to license/sub-license third parties and which in either case are for inventions made prior to the Effective Date which were
not made or otherwise acquired pursuant to or as part of a pre-existing relevant business by a CDT Group Company at any time before it became an Affiliate of CDT. 
  
 “exploitation” means manufacture, import, keeping, use and/or sale (including in relation to any such
activity offering to do any of these). 
  
 “Field” means the field of displays and lighting. 
  
 “Future Know-How” means all know-how, experience, drawings and all other technical information of any CDT Group Company (or to which any CDT Group Company has relevant rights) that is developed on or
after the Effective Date and prior to the termination or expiry of the Contract Research Agreement (disregarding for these purposes clause 13.3 of that agreement) and which: 
  

	 	(i)	relates to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors), Relevant Materials, formulations containing organic
semiconductors generally (as distinct from specific classes or types of organic semiconductors), formulations containing Relevant Materials and the uses of organic semiconductors generally (as distinct from specific classes or types of organic
semiconductors), Relevant Materials and/or such formulations (including, without limitation, processes for the manufacture of any of the foregoing) but not to the extent it relates to or concerns the design, development or fabrication of Devices;

  

	 	(ii)	is developed independently of any work carried out by any CDT Group Company, or confidential information of Covion disclosed to any CDT Group Company, pursuant to the Contract
Research Agreement; 

  

	 	(iii)	might reasonably be of commercial interest in the design, manufacture or supply of organic semiconductors generally (as distinct from specific classes or types of organic
semiconductors), Relevant Materials and/or such formulations; 

  

	 	(iv)	which as a body or in the precise configuration and assembly of its components is not generally known or easily accessible; and 

  

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	 	(v)	is not developed or otherwise acquired pursuant to or as part of a pre-existing relevant business by a CDT Group Company at any time before it became an Affiliate of CDT.

  
 “Future Patents” means the
patents and/or patent applications to be owned by any CDT Group Company or to which any CDT Group Company will have relevant rights which enable any CDT Group Company to license/sub-license third parties and which in either case are for inventions
made (a) on or after the Effective Date which were not made or otherwise acquired pursuant to or as part of a pre-existing relevant business by a CDT Group Company at any time before it became an Affiliate of CDT; and (b) prior to the termination or
expiry of the Contract Research Agreement independently of any work carried out by any CDT Group Company, or confidential information of Covion disclosed to any CDT Group Company pursuant to the Contract Research Agreement. 
  
 “Know-How” means the Existing Know-How and/or the Future
Know-How. 
  
 “Net Sales Value” means the gross
invoice price for sales of Covion Products on an arm’s length basis by Covion or any Covion Licensee to any third party (i.e. an entity other than Covion or a Covion Licensee), less: 
  

	 	(i)	the cost of packaging (not forming part of the Covion Products), transportation and insurance; 

  

	 	(ii)	commissions, early payment discounts (but only where these are in accordance with local business custom and practice), trade discounts or quantity discounts actually granted;

  

	 	(iii)	allowances or credits actually granted to customers on account of settlement of complaints, returns and replacements; and 

  

	 	(iv)	sales taxes and/or other taxes and/or tariff duties directly imposed on sales of Covion Products. 

  
 Where Covion Products are sold other than on an arm’s length basis to a third party (ie. an entity other than Covion or
a Covion Licensee), the Net Sales Value shall be deemed to be the average gross invoice price obtained by Covion or the relevant Covion Licensee (as the case may be) for sales on an arm’s length basis over the six months immediately preceding
the transaction in question less those items specified above. 
  
 “OLEMs” means organic light-emitting materials. 
  

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 “Patents” means the Existing Patents and/or the Future Patents and/or the Assigned
Patent. 
  
 “PLEMs” means (a) Polyfluorenes; (b)
solid compositions containing Polyfluorenes in an amount of at least one percent (1%) by weight; and (c) solutions containing Polyfluorenes including formulations for ink jet printing; for the purposes of this definition
“Polyfluorenes” means any polymer having substituted or unsubstituted 2,7 linked fluorene mer units but does not include polymer where all the fluorene units are spirofluorenes or indenofluorenes. 
  
 “Relevant Materials” means specific classes or types of
organic semiconductors other than PLEMs. 
  
 “Relevant
Joint Venture” means any joint venture in which the business entity referred to has at least a 50% interest in the outstanding voting securities or capital stock of such joint venture or any other comparable equity or ownership interest
with respect to a business entity other than a corporation. 
  
 “Royalty Income” means any income (after deduction of any taxes imposed directly on such income) from sales of organic semiconductors obtained by Covion or any Covion Licensee from the licensing to any third party (i.e. an
entity which is not a Covion Licensee) of any patent owned at any time by Covion for an invention covered by Clause 7.5 of the Contract Research Agreement or any know-how owned at any time by Covion for an invention which is considered to be
equivalent to a patent in certain countries pursuant to Clause 7.5 of the Contract Research Agreement. 
  
 “SEC” means Seiko Epson Corporation, a company incorporated in Japan whose registered office is situated at 3-3-5 Owa, Suwa-Shi,
Nagano-ken 392, Japan. 
  
 “Sumitomo” means
Sumitomo Chemicals Limited, a company incorporated in Japan whose registered office is situated at 27-1 Shinkawa 2-chome, Chuo-ku, Tokyo 104-8260, Japan; and “Sumitomo Group Company” means Sumitomo or any Affiliate of Sumitomo.

  
 “Territory” means in relation to both the
Patents and the Know-How, worldwide. 
  

	1.2	A reference to any party to this Agreement shall include a reference to its legal successors and permitted assignees. 

  

	1.3	References to recitals, clauses, paragraphs, and schedules are to recitals, clauses, paragraphs and schedules to this Agreement. 

  

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	1.4	The Schedules form part of this Agreement and shall have the same force and effect as if expressly set out in the body of the Agreement and any reference to the Agreement shall
include the Schedules. 

  

	1.5	References to writing shall include any mode of reproducing words in a legible and non-transitory form 

  

	1.6	References to “£” and “pounds sterling” are references to the currency of the United Kingdom. 

  

	1.7	The term “licence” in this Agreement shall where CDT can only grant a sub-licence mean a “sub-licence”. 

  

	2.	GRANT OF LICENCES/RIGHTS TO THIRD PARTIES AND CDT CONTINUING RESEARCH ETC. RIGHTS 

  

	2.1	CDT has entered into an agreement with Dow under which CDT has: 

  

	 	2.1.1	exclusively licensed to Dow under the Existing Patents the claims which relate specifically to PLEMs, the claims to formulations containing PLEMs and the claims to the uses of PLEMs
and such formulations, (including, without limitation, claims to processes for the manufacture of PLEMs and such formulations and in particular claims to all process technology relating to the Suzuki coupling reaction for use in making PLEMs) but
not (in relation to any or all of the foregoing) any such claim to the extent that it relates to or concerns the design, development or fabrication of Devices; 

  

	 	2.1.2	granted to Dow an option to take a non-exclusive licence under the Existing Patents which had been published as at 1st June 2001: 

  

	 	2.1.2.1	of the claims relating to Relevant Materials, the claims to formulations containing Relevant Materials and the claims to the uses of Relevant Materials and/or such formulations
(including, without limitation, claims to processes for the manufacture of any of the foregoing); and 

  

	 	2.1.2.2	of the claims to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors), the claims to formulations containing organic
semiconductors generally (as distinct from specific classes or types of organic semiconductors) and the claims to the uses of organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and such
formulations, (including, without limitation, claims to 

  

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	 	    	processes for the manufacture of organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and such formulations),

  

	 	    	but not (in relation to any or all of the foregoing) of any such claim to the extent that it relates to or concerns the design, development or fabrication of Devices;

  

	 	2.1.3	exclusively licensed to Dow its know-how as at the Effective Date and in the future which relates specifically to PLEMs, to formulations containing PLEMs and to the uses of PLEMs
and such formulations, (including, without limitation, processes for the manufacture of PLEMs and such formulations and in particular all process technology relating to the Suzuki coupling reaction for use in making PLEMs) but not (in relation to
any or all of the foregoing) any such know-how to the extent that it relates to or concerns the design, development or fabrication of Devices; 

  

	 	2.1.4	non-exclusively licensed to Dow such of its know-how both at the Effective Date and in the future as is necessary to exploit the Existing Patents for all process technology relating
to the Suzuki coupling reaction for use in making Relevant Materials but not (in relation to any or all of the foregoing) any such know-how to the extent that it relates to or concerns the design, development or fabrication of Devices; and

  

	 	2.1.5	non-exclusively licensed to Dow under the Existing Patents: 

  

	 	2.1.5.1	the claims to spirofluorenes and/or indenofluorenes specifically, the claims to formulations containing spirofluorenes and/or indenofluorenes specifically) and the claims to the
uses of spirofluorenes and/or indenofluorenes specifically and such formulations, (including, without limitation, claims to processes for the manufacture of spirofluorenes and/or indenofluorenes specifically); and 

  

	 	2.1.5.2	the claims to all process technology relating to the Suzuki coupling reaction for use in making Relevant Materials, 

  

	 	    	but not (in relation to any or all of the foregoing) any such claim to the extent that it relates to or concerns the design, development or fabrication of Devices.

  

	 	    	As part of such agreement CDT has assigned to Dow the Assigned Patent. 

  

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	2.2	CDT has entered into an agreement with Sumitomo under which CDT has: 

  

	 	2.2.1	non-exclusively licensed to Sumitomo under the Existing Patents which had been published as at 8th July 2001: 

  

	 	2.2.1.1	the claims relating to Relevant Materials, the claims to formulations containing Relevant Materials and the claims to the uses of Relevant Materials and/or such formulations
(including, without limitation, claims to processes for the manufacture of any of the foregoing); and 

  

	 	2.2.1.2	the claims to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors), the claims to formulations containing organic semiconductors
generally (as distinct from specific classes or types of organic semiconductors) and the claims to the uses of organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and such formulations, (including,
without limitation, claims to processes for the manufacture of organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and such formulations), 

  

	 	    	but not (in relation to any or all of the foregoing) any such claim to the extent that it relates to or concerns the design, development or fabrication of Devices;

  

	 	2.2.2	non-exclusively licensed to Sumitomo its know-how as at 8th July 2001 which relates to: 

  

	 	2.2.2.1	Relevant Materials, formulations containing Relevant Materials and the uses of Relevant Materials and/or such formulations (including, without limitation, processes for the
manufacture of any of the foregoing); and 

  

	 	2.2.2.2	organic semiconductors generally (as distinct from specific classes or types of organic semiconductors), to formulations containing organic semiconductors generally (as distinct
from specific classes or types of organic semiconductors) and to the uses of organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and such formulations, (including, without limitation, processes for
the manufacture of organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and such formulations) 

  

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	 	    	but not (in relation to any or all of the foregoing) any such know-how to the extent that it relates to or concerns the design, development or fabrication of Devices.

  
 As part of such agreement CDT is also obliged
to give some general technical assistance in Sumitomo’s development of red, green, blue and white OLEMs which CDT warrants to Covion will consist only of providing device testing and suggestions for optimising device architecture for use with
polymers supplied by Sumitomo and dissolved in solvents by CDT. For the avoidance of doubt CDT undertakes to Covion that CDT will not provide Sumitomo with suggestions for chemical modification of OLEMs. 
  

	2.3	CDT hereby warrants that Dow has no rights under the non-exclusive licences referred to in Clause 2.1 to sub-license third parties other than Dow Group Companies, Relevant Joint
Ventures of any Dow Group Company and toll manufacturers. CDT hereby warrants that Sumitomo have no rights under the non-exclusive licences referred to in Clause 2.2 to sub-license third parties other than Sumitomo Group Companies, Relevant Joint
Ventures of any Sumitomo Group Company and toll manufacturers (save for those based in the Peoples Republic of China) (however for these purposes only a Sumitomo Group Company shall be deemed to be any corporation, company or other entity fifty
percent (50%) or more of which is owned by or controlled by or under common control with Sumitomo. 

  

	2.4	CDT hereby undertakes not to initiate any discussions with Dow with regard to exercise of the option granted to Dow referred to in Clause 2.1.2. Should Dow exercise the said option
and take a non-exclusive licence under the Existing Patents which had been published as at 1st June 2001 then CDT
undertakes to reduce the aggregate royalties payable by Covion under this Agreement and the Contract Research Agreement (if any) in respect of any Relevant Material specifically mentioned in an Existing Patent published as at 1st June 2001 which is the same, or substantially the same, as a Relevant Material being sold by Dow which is covered by the above
licence to the same level as those being paid to CDT by Dow for such material under the above licence. 

  

	2.5	Notwithstanding the grant of the exclusive and non-exclusive licences referred to Clauses 3 to 8 below, Covion acknowledges and agrees that CDT shall be entitled to carry out on its
own behalf only, research and development (but not exploitation unless allowed in accordance with the provisions of Clause 8) relating to the application of any of the technology the subject of such licences outside of the Field and to promote or
otherwise market the existence (but not the detail) of such technology in general terms throughout the world. 

  

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	3.	LICENCE/RIGHTS TO RELEVANT MATERIALS 

  

	3.1	CDT hereby grants to Covion an exclusive (save for the non-exclusive licence granted to Dow referred to in Clauses 2.1.5) licence under the Existing Patents to exploit in any manner
in the Territory during the term of this Agreement: 

  

	 	3.1.1	all claims relating to Relevant Materials which are not listed in Schedules 3 and/or 4 to this Agreement and all claims to formulations containing Relevant Materials which are not
listed in Schedules 3 and/or 4 to this Agreement (including, without limitation, claims to processes for the manufacture of any of the foregoing); and 

  

	 	3.1.2	all claims (if any) to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) which are not listed in Schedules 3 and/or 4 to this
Agreement and all claims (if any) to formulations containing organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) which are not listed in Schedules 3 and/or 4 to this Agreement (including, without
limitation, claims to processes for the manufacture of any of the foregoing), 

  
 but not (in relation to any or all of the foregoing) any such claim to the extent that it relates to or concerns the design, development or fabrication of Devices. 
  

	3.2	The claims licensed to Covion pursuant to Clause 3.1 shall include but not be limited to those claims listed in Schedule 2 to this Agreement (for the avoidance of doubt only claims
from Existing Patents that have been published as at the Effective Date are included in Schedule 2). The Existing Patents referred to in Clause 5.1 are specifically excluded from the provisions of this Clause 3. 

  

	3.3	CDT hereby grants to Covion a non-exclusive licence under the Existing Patents to exploit in any manner in the Territory during the term of this Agreement any claims under the
Existing Patents not licensed to Covion pursuant to Clause 3.1 or Clause 3.5 but which make reference to any Relevant Materials and/or formulations containing Relevant Materials which are the subject of the licences referred to in Clause 3.1 or
Clause 3.5 PROVIDED ALWAYS THAT where any such claim relates to or concerns the design, development or fabrication of Devices this licence shall only apply to such claim where such claim (as finally granted) is to an already known (at the date the
relevant patent application is filed) Device comprising a new Relevant Material and/or new formulation containing a 

  

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 Relevant Material (i.e. where the only inventive part of the claim is the presence of the new Relevant
Material and/or new formulation containing a Relevant Material). The claims licensed to Covion pursuant to this Clause 3.3 shall include but not be limited to those claims listed in Schedule 6 to this Agreement SUBJECT ALWAYS to the above proviso
(for the avoidance of doubt only claims from Existing Patents that have been published as at the Effective Date are included in Schedule 6). 
  

	3.4	Where the Existing Patents referred to in Clause 3.1 and/or Clause 3.3 are not solely owned by CDT or are owned by third parties but CDT has relevant rights thereunder which enable
them to license/sub-license Covion in the manner specified in Clause 3.1 and/or Clause 3.3 then, where CDT has to pay royalties or any other form of monetary consideration to a relevant third party for those rights and such royalties or other
consideration are significant in the context of the royalties payable by Covion to CDT under Clause 11, the parties shall be under an obligation to discuss and seek to agree in good faith negotiations, an equitable basis for the allocation between
CDT and Covion of such royalties or other consideration. If no agreement can be reached within a reasonable period of time then those Existing Patents to which such discussions relate shall not form part of the Existing Patents licensed/sub-licensed
to Covion in accordance with Clause 3.1 and/or Clause 3.3. CDT hereby warrants that as at the Effective Date it is not aware of any Existing Patents referred to in Clause 3.1 and/or Clause 3.3 where CDT is obliged to pay royalties or other
consideration for the granting of the licences referred to in Clause 3.1 and/or Clause 3.3. 

  

	3.5	CDT hereby grants to Covion an exclusive (save for those non-exclusive licences granted to Dow and Sumitomo referred to in Clauses 2.1.5 and 2.2.1 and the option to take a
non-exclusive licence granted to Dow referred to in Clause 2.1.2) licence under the Existing Patents to exploit in any manner in the Territory during the term of this Agreement all claims listed in Schedules 3 and/or 4 to this Agreement.

  

	3.6	In respect of any claims which are the subject of the licences referred to in Clause 3.1, Clause 3.3 or Clause 3.5, CDT hereby undertakes not to assert any such claims against any
customer of Covion or any Covion Licensee or any third party purchasing a product containing any Relevant Materials from such customer where such customer has purchased the Relevant Materials in question (or a formulation containing such Relevant
Materials) from Covion or any Covion Licensee. In respect of any claims that relate to or concern the design, development or fabrication of Devices which are not licensed to Covion pursuant to Clause 3.3, CDT hereby undertakes not to assert any such
claims against any customer of Covion or any Covion Licensee or any third party purchasing a product containing any Relevant Materials from such customer where such 

  

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 customer has purchased the Relevant Materials in question (or a formulation containing such Relevant
Materials) from Covion or any Covion Licensee, provided that such customer has obtained an appropriate licence from CDT or it is manufacturing Devices otherwise than for sale or other commercial exploitation. 
  

	4.	[**] 

  

	4.1	[**] 

  

	4.2	CDT hereby undertakes not to grant a licence of the claims listed in Schedule 1 to any third party but Covion acknowledges that CDT has already granted a licence to Sumitomo in
respect of those claims listed in Schedule 1 as part of the non-exclusive licence to Sumitomo referred to in Clause 2.2.2. 

  

	4.3	[**] 

  

	4.4	[**] 

  

	4.5	[**] 

  

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	5.	LICENCE/RIGHTS TO SEC PATENTS 

  

	5.1	CDT hereby undertakes to use all reasonable endeavours to obtain agreement from SEC to the grant to Covion by CDT (and/or if necessary SEC) of a non-exclusive licence under the
Existing Patents jointly owned by CDT and SEC or owned by SEC (but under which CDT has/will have relevant rights which enable CDT to licence third parties) to exploit in any manner in the Territory during the term of this Agreement:

  

	 	5.1.1	all claims relating to Relevant Materials, all claims to formulations containing Relevant Materials and all claims to the uses of Relevant Materials and/or such formulations
(including, without limitation, claims to processes for the manufacture of any of the foregoing); and 

  

	 	5.1.2	all claims to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors), all claims to formulations containing organic semiconductors
generally (as distinct from specific classes or types of organic semiconductors) and all claims to the uses of organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and/or such formulations
(including, without limitation, claims to processes for the manufacture of any of the foregoing), but not (in relation to any or all of the foregoing) any such claim to the extent that it relates to or concerns the design, development or fabrication
of Devices. 

  

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	5.2	The claims referred to in Clause 5.1 shall include but not be limited to those claims listed in Schedule 5 to this Agreement (for the avoidance of doubt only claims from Existing
Patents that have been published as at the Effective Date are included in Schedule 5). 

  

	5.3	CDT hereby undertakes to use all reasonable endeavours to obtain agreement from SEC to the grant to Covion by CDT (and/or if necessary SEC) of a non-exclusive licence under the
Existing Patents jointly owned by CDT and SEC or owned by SEC (but under which CDT has/will have relevant rights which enable CDT to licence third parties) to exploit in any manner in the Territory during the term of this Agreement any claims under
the Existing Patents jointly owned by CDT and SEC or owned by SEC (but under which CDT has/will have relevant rights which enable CDT to licence third parties) not the subject of Clause 5.1 but which make reference to any Relevant Materials and/or
formulations containing Relevant Materials which are the subject of Clause 5.1 PROVIDED ALWAYS THAT where any such claim relates to or concerns the design, development or fabrication of Devices this licence shall only apply to such claim where such
claim (as finally granted) is to an already known (at the date the relevant patent application is filed) Device comprising a new Relevant Material and/or new formulation containing a Relevant Material (ie. where the only inventive part of the claim
is the presence of the new Relevant Material and/or new formulation containing a Relevant Material). The claims referred to in this Clause 5.3 shall include but not be limited to those claims listed in Schedule 7 to this Agreement SUBJECT ALWAYS to
the above proviso (for the avoidance of doubt only claims from Existing Patents that have been published as at the Effective Date are included in Schedule 7). 

  

	5.4	Where CDT has to pay royalties or any other form of monetary consideration to SEC to obtain SEC’s agreement to the grant of the licences referred to in Clause 5.1 and/or Clause
5.3 under any of the Existing Patents and such royalties or other consideration are significant in the context of the royalties payable by Covion to CDT under Clause 11, the parties shall be under an obligation to discuss and seek to agree in good
faith negotiations, an equitable basis for the allocation between CDT and Covion of such royalties or other consideration. If no agreement can be reached within a reasonable period of time then those Existing Patents to which such discussions relate
shall not form part of the Existing Patents which CDT shall be obliged to use all reasonable endeavours to obtain a licence thereof for Covion in accordance with Clause 5.1 and/or Clause 5.3. CDT hereby warrants that as at the Effective Date it is
not aware of any Existing Patents referred to in Clause 5.1 and/or Clause 5.3 where CDT is obliged to pay royalties or other consideration for obtaining SEC’s agreement to the granting of the licence referred to in Clause 5.1 and/or Clause 5.3.

  

 15 

	5.5	If SEC’s agreement is obtained to the granting of the licence referred to in Clause 5.1 and/or Clause 5.3 then CDT shall procure the granting of such licence to Covion as soon
as reasonably practicable thereafter. 

  

	5.6	In respect of any claims which are the subject of the licence referred to in Clause 5.5, CDT hereby undertakes, and shall use all reasonable endeavours to ensure that SEC shall
undertake, not to assert any such claims against any customer of Covion or any Covion Licensee or any third party purchasing a product containing any Relevant Materials from such customer where such customer has purchased the Relevant Materials in
question (or a formulation containing such Relevant Materials) from Covion or any Covion Licensee. In respect of any claims that relate to or concern the design, development or fabrication of Devices which are not licensed to Covion pursuant to the
licence referred to in Clause 5.5, CDT hereby undertakes, and shall use all reasonable endeavours to ensure that SEC shall undertake, not to assert any such claims against any customer of Covion or any Covion Licensee or any third party purchasing a
product containing any Relevant Materials from such customer where such customer has purchased the Relevant Materials in question (or a formulation containing such Relevant Materials) from Covion or any Covion Licensee, provided that such customer
has obtained an appropriate licence from CDT and/or SEC, as relevant in the circumstances, or it is manufacturing Devices otherwise than for sale or other commercial exploitation. 

  

	6.	LICENCE/RIGHTS TO THE EXISTING KNOW-HOW 

  

	6.1	CDT hereby grants to Covion an exclusive (save for those non-exclusive licences granted to Dow and Sumitomo referred to in Clauses 2.1.4 and 2.2.2) right to use the Existing
Know-How to exploit Relevant Materials, formulations containing Relevant Materials and the uses of Relevant Materials and such formulations (including, without limitation, processes for the manufacture of any of the foregoing) in any manner in the
Territory during the term of this Agreement. 

  

	6.2	CDT and Covion shall be obliged to work together to effect a transfer of the Existing Know-How within six months from the Effective Date and in that context shall agree what is to
be provided in written form and what can be provided in oral form. In the event that the transfer is not completed by such date neither party shall be under any liability to the other in respect of such failure provided both parties have used their
reasonable endeavours to meet such deadline. 

  

 16 

	7.	LICENCE/RIGHTS TO FUTURE PATENTS AND FUTURE KNOW-HOW IN THE FIELD 

  

	7.1	CDT hereby grants to Covion an exclusive licence under the Future Patents to exploit in any manner within the Field in the Territory during the term of this Agreement:

  

	 	7.1.1	all claims relating to Relevant Materials and all claims to formulations containing Relevant Materials (including, without limitation, claims to processes for the manufacture of any
of the foregoing); and 

  

	 	7.1.2	all claims (if any) to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and all claims (if any) to formulations containing
organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) (including, without limitation, claims to processes for the manufacture of any of the foregoing), 

  
 but not (in relation to any or all of the foregoing) any such claim to the
extent that it relates to or concerns the design, development or fabrication of Devices. 
  

	7.2	CDT hereby grants to Covion a non-exclusive licence under the Future Patents to exploit in any manner within the Field in the Territory during the term of this Agreement any claims
under the Future Patents not licensed to Covion pursuant to Clause 7.1 but which make reference to any Relevant Materials and/or formulations containing Relevant Materials which are the subject of the licence referred to in Clause 7.1 PROVIDED
ALWAYS THAT where any such claim relates to or concerns the design, development or fabrication of Devices this licence shall only apply to such claim where such claim (as finally granted) is to an already known (at the date the relevant patent
application is filed) Device comprising a new Relevant Material and/or new formulation containing a Relevant Material (i.e. where the only inventive part of the claim is the presence of the new Relevant Material and/or new formulation containing a
Relevant Material). 

  

	7.3	CDT hereby grants to Covion an exclusive (save for the non-exclusive licence granted to Dow referred to in Clause 2.1.4) right to use the Future Know-How to exploit Relevant
Materials, formulations containing Relevant Materials and the uses of Relevant Materials and such formulations (including, without limitation, processes for the manufacture of any of the foregoing) in any manner within the Field in the Territory
during the term of this Agreement. CDT and Covion shall be obliged to work together to effect a transfer of any relevant Future Know-How in a timely manner (and in any event such transfer shall be completed within six months from the termination or
expiry of the Contract Research Agreement) and 

  

 17 

 in that context shall agree what is to be provided in written form and what can be provided in oral form.
In the event that the transfer is not completed by such date neither party shall be under any liability to the other in respect of such failure provided both parties have used their reasonable endeavours to meet such deadline. 
  

	7.4	Where the Future Patents referred to in Clause 7.1 and/or Clause 7.2 are not solely owned by CDT or are owned by third parties but CDT has relevant rights thereunder which enable
them to license/sub-license Covion in the manner specified in Clause 7.1 and/or Clause 7.2 then, where CDT has to pay royalties or any other form of monetary consideration to a relevant third party for those rights and such royalties or other
consideration are significant in the context of the royalties payable by Covion to CDT under Clause 11, the parties shall be under an obligation to discuss and seek to agree in good faith negotiations, an equitable basis for the allocation between
CDT and Covion of such loyalties or other consideration. If no agreement can be reached within a reasonable period of time then those Future Patents to which such discussions relate shall not form part of the Future Patents licensed/sub-licensed to
Covion in accordance with Clause 7.1 and/or Clause 7.2. 

  

	7.5	In respect of any claims which are the subject of the licences referred to in Clause 7.1 and/or Clause 7.2, CDT hereby undertakes not to assert any such claims against any customer
of Covion or any Covion Licensee or any third party purchasing a product containing any organic semiconductors from such customer where such customer has purchased the organic semiconductors in question (or a formulation containing such organic
semiconductors) from Covion or any Covion Licensee for use within the Field. In respect of any claims that relate to or concern the design, development or fabrication of Devices which are not licensed to Covion pursuant to Clause 7.2, CDT hereby
undertakes not to assert any such claims against any customer of Covion or any Covion Licensee or any third party purchasing a product containing any organic semiconductors from such customer where such customer has purchased the organic
semiconductors in question (or a formulation containing such organic semiconductors) from Covion or any Covion Licensee for use within the Field, provided that such customer has obtained an appropriate licence from CDT or it is manufacturing Devices
otherwise than for sale or other commercial exploitation. 

  

	8.	OTHER LICENCE/RIGHTS TO FUTURE PATENTS AND FUTURE KNOW-HOW 

  

	8.1	CDT hereby grants to Covion an exclusive licence under the Future Patents to exploit in any manner outside the Field in the Territory during the term of this Agreement:

  

	 	8.1.1	all claims relating to Relevant Materials and all claims to formulations containing Relevant Materials (including, without limitation, claims to processes for the manufacture of any
of the foregoing); and 

  

 18 

	 	8.1.2	all claims (if any) to organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) and all claims (if any) to formulations containing
organic semiconductors generally (as distinct from specific classes or types of organic semiconductors) (including, without limitation, claims to processes for the manufacture of any of the foregoing), 

  
 but not (in relation to any or all of the foregoing) any such claim to the
extent that it relates to or concerns the design, development or fabrication of Devices. 
  

	8.2	CDT hereby grants to Covion a non-exclusive licence under the Future Patents to exploit in any manner outside the Field in the Territory during the term of this Agreement any claims
under the Future Patents not licensed to Covion pursuant to Clause 8.1 but which make reference to any Relevant Materials and/or formulations containing Relevant Materials which are the subject of the licence referred to in Clause 8.1 PROVIDED
ALWAYS THAT where any such claim relates to or concerns the design, development or fabrication of Devices this licence shall only apply to such claim where such claim (as finally granted) is to an already known (at the date the relevant patent
application is filed) Device comprising a new Relevant Material and/or new formulation containing a Relevant Material (i.e. where the only inventive part of the claim is the presence of the new Relevant Material and/or new formulation containing a
Relevant Material). 

  

	8.3	CDT hereby grants to Covion an exclusive (save for the non-exclusive licence granted to Dow referred to in Clause 2.1.4) right to use the Future Know-How to exploit Relevant
Materials, formulations containing Relevant Materials and the uses of Relevant Materials and such formulations (including, without limitation, processes for the manufacture of any of the foregoing) in any manner outside the Field in the Territory
during the term of this Agreement. CDT and Covion shall be obliged to work together to effect a transfer of any relevant Future Know-How in a timely manner (and in any event such transfer shall be completed within six months from the termination or
expiry of the Contract Research Agreement) and in that context shall agree what is to be provided in written form and what can be provided in oral form In the event that the transfer is not completed by such date neither party shall be under any
liability to the other in respect of such failure provided both parties have used their reasonable endeavours to meet such deadline. 

  

 19 

	8.4	Where the Future Patents referred to in Clause 8.1 and/or Clause 8.2 are not solely owned by CDT or are owned by third parties but CDT has relevant rights thereunder which enable
them to license/sub-license Covion in the manner specified in Clause 8.1 and/or Clause 8.2 then, where CDT has to pay royalties or any other form of monetary consideration to a relevant third party for those rights and such royalties or other
consideration are significant in the context of the royalties payable by Covion to CDT under Clause 11, the parties shall be under an obligation to discuss and seek to agree in good faith negotiations, an equitable basis for the allocation between
CDT and Covion of such royalties or other consideration. If no agreement can be reached within a reasonable period of time then those Future Patents to which such discussions relate shall not form part of the Future Patents licensed/sub-licensed to
Covion in accordance with Clause 8.1 and/or Clause 8.2. 

  

	8.5	In respect of any claims which are the subject of the licences referred to in Clause 8.1 and/or Clause 8.2, CDT hereby undertakes not to assert any such claims against any customer
of Covion or any Covion Licensee or any third party purchasing a product containing any organic semiconductors from such customer where such customer has purchased the organic semiconductors in question (or a formulation containing such organic
semiconductors) from Covion or any Covion Licensee for use outside the Field. In respect of any claims that relate to or concern the design, development or fabrication of Devices which are not licensed to Covion pursuant to Clause 8.2, CDT hereby
undertakes not to assert any such claims against any customer of Covion or any Covion Licensee or any third party purchasing a product containing any organic semiconductors from such customer where such customer has purchased the organic
semiconductors in question (or a formulation containing such organic semiconductors) from Covion or any Covion Licensee for use outside the Field, provided that such customer has obtained an appropriate licence from CDT or it is manufacturing
Devices otherwise than for sale or other commercial exploitation. 

  

	8.6	The exclusive licence and right granted to Covion pursuant to Clauses 8.1 and 8.3 shall become a sole licence and right in respect of a particular organic semiconductor or
formulation containing such organic semiconductor if Covion does not within six months of a bona fide customer request received either directly or via CDT commence scale-up to manufacture in respect of the particular organic semiconductor or
formulation containing such organic semiconductor. In such circumstances CDT may engage a toll manufacturer to produce the relevant product. 

  

	9.	USE OF KNOW-HOW 

  

	9.1	CDT warrants that all Existing Know-How disclosed or to be disclosed to Covion hereunder is or will be, to the best of CDT’s knowledge and belief, accurate

  

 20 

 (provided always that CDT will promptly correct any significant errors in the Existing Know-How
subsequently discovered by CDT) but subject thereto CDT shall be under no further liability to Covion in respect of the Existing Know-How or of the exploitation thereof (including, without limitation, the exploitation of Covion Products).

  

	9.2	CDT hereby undertakes to warrant at the time of such disclosure of any such Future Know-How that such Future Know-How then disclosed to Covion hereunder is, to the best of
CDT’s knowledge and belief, accurate (provided always that CDT will promptly correct any significant errors in the Future Know-How subsequently discovered by CDT) but subject thereto CDT shall be under no further liability to Covion in respect
of the Future Know-How or of the exploitation thereof (including, without limitation, the exploitation of Covion Products). 

  

	9.3	Covion shall be exclusively responsible for all Covion Products manufactured sold, used or supplied by Covion or any Covion Licensee and accordingly Covion shall indemnify and keep
indemnified CDT (and shall procure that any Covion Licensee indemnifies and keeps indemnified CDT) in respect of all costs damages and expenses incurred as a result of any claims by third parties in tort or howsoever otherwise including, without
limitation, any relevant legislation or regulation against CDT arising in any way out of the use of any of the Patents and/or Know-How by or for Covion or by or for any Covion licensee. 

  

	10.	SUB-LICENSING AND ASSIGNMENT 

  

	10.1	Covion may grant sub-licences within the scope of its own rights granted under Clauses 3 to 8 to any Covion Licensee but shall not, subject to Clause 10.2, otherwise sub-license,
assign, charge or transfer to any party any of its rights granted hereunder without first obtaining the express written consent of CDT. However the rights granted pursuant to Clause 4 may only be exploited by either Covion or one Covion licensee and
not by more than one of such entities. Covion’s ability to sub-license the rights granted pursuant to Clause 4 shall be restricted accordingly. CDT shall be promptly notified by Covion of any such sub-licence. 

  

	10.2	Sub-licences granted by Covion and/or any Covion Licensee to toll manufacturers (excluding those based in the Peoples Republic of China) employed by such entity to manufacture
Covion Products for such entity shall not require the consent of CDT. 

  

	10.3	If at any time Covion ceases to be an Affiliate of Avecia any sub-licence previously granted by Covion pursuant to clause 10.1 shall automatically terminate at that time in respect
of any business entity which at the relevant time is no longer an Affiliate of Covion or Relevant Joint Venture of any Covion Group Company. 

  

 21 

	10.4	If a sub-licence is granted to a Relevant Joint Venture of (a) any Covion Group Company or (b) any Avecia Group Company and that Relevant Joint Venture has as a shareholder holding
at least 5% of the equity share capital of any Dow Group Company, then the licence to exploit in any manner the rights which are the subject of the sub-licence to that Relevant Joint Venture shall become permanently non-exclusive as between Covion
and CDT with respect to the field/fields in which that Relevant Joint Venture is exploiting such licence and rights. 

  

	10.5	All sub-licences granted under this Agreement shall, with only the necessary changes having been made, contain the same obligations and limitations as are contained in this
Agreement. Covion shall ensure and guarantee to CDT that its sub-licensees will comply with those obligations (including, but without being limited to, the payment of all sums due to CDT in respect of Covion Products exploited by them) as if such
sub-licensees were party to this Agreement. Any act or omission of a Covion Licensee or a toll manufacturer pursuant to any sub-licence shall be deemed to be an act or omission of Covion pursuant to this Agreement. 

  

	10.6	On termination of this Agreement for any reason all sub-licences shall automatically terminate unless CDT, in its absolute discretion, agrees by way of written notice to treat any
sub-licence as a continuing licence subject to the whole or part of the terms of such continuing licence being agreed. 

  

	10.7	A party may not assign or transfer all or any part of its rights or obligations under this Agreement without the prior written consent of the other party (such consent not to be
unreasonably withheld or delayed) save that both the benefit and the burden of all its provisions may be transferred on notice to the other party to the following: 

  

	 	10.7.1	any company which is a subsidiary, fellow subsidiary or holding company of the party concerned (each a “Qualifying Company”) but, by accepting such a transfer and
as a condition thereof, the transferee shall be deemed to agree with the parties to this Agreement to re-transfer both the benefit and the burden of all its provisions to the party concerned or another of its Qualifying Companies before itself
ceasing to be a Qualifying Company in relation to such party; or 

  

	 	10.7.2	a purchaser of all or substantially all of the assets of the business to which this Agreement relates, 

  

 22 

 and the parties shall execute such documents as may be appropriate to effect such transfers. However if
the benefit and burden of the provisions of this Agreement is transferred by Covion or any successor in title thereof to any Dow Group Company or any Sumitomo Group Company then all licences and rights granted to Covion pursuant to this Agreement
shall become non-exclusive. 
  

	10.8	The Patents and Know-How cannot be assigned or transferred by CDT or any successor in title thereof other than as part of a transfer of the rights and obligations of CDT or any
successor in title thereof under this Agreement. Except with the prior consent of Covion or any successor in title thereof (which consent shall not be unreasonably withheld or delayed) any transfer of the rights and obligations of CDT or any
successor in title thereof under this Agreement must be accompanied by an assignment or transfer of the Patents and Know-How. 

  

	10.9	Save as provided by clause 10.7.1, change of control of either party shall have no effect on this Agreement save that if the acquiring party of Covion or any successor in title
thereof is any Dow Group Company or any Sumitomo Group Company then all licences and rights granted to Covion pursuant to this Agreement shall become nonexclusive. 

  

	11.	ROYALTIES 

  

	11.1	Covion shall, in respect of the licences and rights granted to Covion pursuant to Clauses 3 to 8, pay to CDT a royalty (excluding VAT or other sales tax if applicable) of [**] of
the Net Sales Value of all Covion Products sold during the relevant periods defined in accordance with Clause 11.2. 

  

	11.2	The royalty referred to in Clause 11.1 shall be payable on all Covion Products for a period of ten years from the Effective Date. This period may be extended depending on the Covion
Products involved as follows: 

  

	 	11.2.1	if the sale or any other aspect of the exploitation of a Covion OLEM Product falls within any of the then still valid claims in a patent or patent application which is owned by
Covion for an invention covered by Clause 7.5 of the Contract Research Agreement (or in the case of a patentable process invention would have fallen within such claims had Covion not decided to keep such invention secret rather than patent it as
contemplated by and in accordance with Clause 7.5 of the Contract Research Agreement) and which has as an inventor a person whose salary was actually paid by CDT at the time of such invention, then the royalty on Covion OLEM Products will continue
to be paid for ten years after the date of filing of the last such patent application to be made (or if kept secret ten years after the date on which the decision not to patent the patentable process invention was notified in writing to CDT) or
until the expiry of the last of the Patents under which claims are licensed to Covion pursuant to this Agreement, whichever is the earlier; 

  

 23 

  

	 	11.2.2	if the sale or any other aspect of the exploitation of a Covion OSC Product falls within any of the then still valid claims in: 

  

	 	(a)	a patent or patent application which is owned by Covion for an invention covered by Clause 7.5 of the Contract Research Agreement (or in the case of a patentable process invention
would have fallen within such claims had Covion not decided to keep such invention secret rather than patent it as contemplated by and in accordance with the Clause 7.5 of the Contract Research Agreement) and which has as an inventor a person whose
salary was actually paid by CDT at the time of such invention; or 

  

	 	(b)	a Future Patent licensed to Covion in accordance with this Agreement, 

  
 then the royalty on such Covion OSC Product will be paid for ten years after the date of filing of the last such patent application (or if kept secret
ten years after the date on which the decision not to patent the patentable process invention was notified to CDT) which has claims that such Covion OSC Product falls within; or if longer for five years after the first commercial sale of such Covion
OSC Product or such shorter period as the relevant patent or Future Patent remains in force (or the relevant patent would have remained in force if the patent application had been filed on the date on which the decision was made to keep it secret).

  

	11.3	For the avoidance of doubt no royalties shall be payable on sales of Covion Products by Covion or any Covion Licensee to any CDT Group Company or any other company in which CDT owns
at least 25% of the equity share capital. Also for the avoidance of doubt royalties on any Covion Products manufactured by any toll manufacturer as contemplated by clause 10.2 shall be payable on the subsequent sale of those products by Covion or
any Covion Licensee and not on the original sale by the toll manufacturer to them. 

  

	11.4	No royalties shall be due to CDT in respect of any Covion Products used by Covion or any Covion Licensee for the further development of Covion Products by Covion or any Covion
Licensee or for quality control procedures in the manufacture or sale of Covion Products or disposed of free of charge for the purposes of promoting the sale of Covion Products. 

  

	11.5	In this Agreement the expression “sold” or any cognate expression shall be deemed to include any type of supply for value. 

  

 24 

	11.6	Covion shall, in respect of the licences and rights granted to Covion pursuant to Clauses 3 to 8, also pay to CDT a royalty (excluding VAT or other sales tax if applicable) of [**]
of the Royalty Income obtained by Covion or any Covion Licensee for a period of ten years after the date of filing of the last relevant patent application (or if kept secret ten years after the date on which the decision not to patent the patentable
process invention was notified to CDT) where such Royalty Income is derived from sales by a third party licensee in the Field. Where such Royalty Income is derived from sales by a third party licensee outside the Field then, if longer than the
period specified above, such royalty on Royalty Income which is derived from sales by a third party licensee outside the Field shall be paid for five years after the first receipt of any such Royalty Income or such shorter period as the relevant
patent remains in force (or would have remained in force if the patent application had been filed on the date on which the decision was made to keep it secret). 

  

	12.	ACCOUNTING AND PAYMENT 

  

	12.1	Royalties shall be payable yearly in arrears sixty (60) days after the end of the last day of each calendar year during the term of this Agreement in which royalties accrue.

  

	12.2	Covion shall and shall procure that any Covion Licensee shall keep at its usual place of business records of account sufficient to enable accurate calculations of royalties due to
CDT and shall produce a statement of those royalties no later than sixty (60) days after the end of each calendar year during the term of this Agreement. If there is a dispute between the parties about the amount of royalties payable, the parties
shall select an independent accountant to be agreed between them, or in default of agreement to be appointed by the President for the time being of the Institute of Chartered Accountants in England and Wales, to inspect the records of Covion and/or
any Covion Licensee on reasonable notice and during normal business hours to verify Covion’s statements and royalty payments due pursuant to this Agreement. If such inspection reveals that any statement or payment shall not have been rendered
or made in accordance with the terms of this Agreement, or that any statement rendered or payment made by Covion was inaccurate by more than five per cent (5%) then Covion shall pay the cost of such inspection without prejudice to any other remedies
or claims of CDT. Such accountant shall not disclose to CDT any information other than information relating to royalties owed by Covion pursuant to this Agreement. CDT shall maintain in confidence and shall oblige the independent accountant to
maintain in confidence all information received pursuant to this sub-clause. The decision of the independent accountant as to the amount of royalty payment to be made shall, in the absence of manifest error, be final and binding upon the parties.

  

 25 

	12.3	All royalties shall be calculated in the currency in which Covion keeps its accounts and shall be paid to CDT in euros in London to the credit of a bank account to be designated in
writing by CDT, the rate of conversion being the relevant buying rate of HSBC Bank plc at close of business on the last business day of the before the day payment is due. 

  

	12.4	All sums shall be paid in full without deductions or set-off, except only for such taxes, or other levies or duties as Covion is legally bound to withhold. Covion shall assist CDT
without charge to recover (under the provisions of double tax conventions or other lawful manner) any tax so withheld. If VAT is payable on any of the royalties then Covion shall pay VAT pursuant to a VAT invoice to be submitted by CDT.

  

	12.5	CDT agrees that if requested by Covion it shall at Covion’s cost (including the payment of stamp duty) record the licence of the Patents licensed to Covion pursuant to this
Agreement on all the appropriate patent registers. 

  

	13.	COVION PRODUCTS 

  
 As further consideration to CDT and only where such Covion Products are available to any third party, Covion undertakes to provide (and/or procure that any relevant Covion Licensee provides) each CDT Group Company and
up to three business entities in which CDT, directly or indirectly, owns at least 25% of the outstanding voting securities or capital stock of such business entities (or any other comparable equity or ownership interest with respect to any business
entity other than a corporation) with Covion Products at the best price at which Covion or any Covion Licensee makes those Covion Products available to any third party for a use similar to the use for which CDT requires such Covion Products (i.e.
equivalent field of use for the same material or formulation). This undertaking applies irrespective of the volume or other terms and conditions which the third party may have agreed to in order to obtain such price from Covion or Covion Licensee.

  

	14.	CONFIDENTIALITY 

  

	14.1	Without the prior written consent of the other party (which shall not be unreasonably withheld or delayed), neither party shall disclose to any third party the existence of this
Agreement, any part of the contents or terms and conditions of this Agreement or any other facts in respect of this Agreement. 

  

	14.2	In consideration of the Disclosing Party disclosing or otherwise making available any Confidential Information to the Receiving Party, the Receiving Party hereby undertakes:

  

	 	14.2.1	to maintain the confidentiality of the Confidential Information and not to disclose it directly or indirectly to any third party, whether an affiliated company, organisation,
individual or otherwise, save as permitted by Clauses 14.3 to 14.5; and 

  

 26 

	 	14.2.2	to take reasonable and appropriate measures to secure the confidentiality attaching to the Confidential Information of the Disclosing Party and safeguard it against theft, loss or
negligent disclosure to others, including but not limited to the same measures as the Receiving Party takes to protect its own confidential information. 

  

	14.3	The Receiving Party may disclose Confidential Information to: 

  

	 	14.3.1	any of its Affiliates provided that the Receiving Party shall procure that prior to such disclosure each Affiliate to which Confidential Information is to be disclosed is made aware
of the obligations contained in this Agreement and agrees to be subject to confidentiality obligations no less onerous than those contained in this Agreement; any breaches of the obligations of confidentiality contained in this agreement by such
Affiliates shall be treated as a breach of such obligations by the Receiving Party; and 

  

	 	14.3.2	its directors and employees and/or other personnel (and to the directors and employees and/or other personnel of the Affiliates to whom disclosure may be made in accordance with
Clause 14.3.1) who need to know the Confidential Information in order to fulfil the Purpose, provided that the Receiving Party shall procure that prior to such disclosure each of those directors and employees and/or other personnel to whom
Confidential Information is to be disclosed is made aware of the obligations of confidentiality, non-analysis and non-use herein contained and any breaches of the obligations of confidentiality, non-analysis and non-use contained in this Agreement
by such directors, employees and/or other personnel (and directors and employees and/or other personnel of such Affiliates) shall be treated as a breach of such obligations by the Receiving Party. 

  
 Any reference to the Receiving Party in Clause 14.6 where such Receiving
Party is Covion shall be deemed to include reference to its Affiliates to whom Confidential Information of CDT has been disclosed pursuant to this Clause 14.3. Any reference to the Receiving Party in Clause 14.6 where such Receiving Party is CDT
shall be deemed to include reference to its Affiliates to whom Confidential Information of Covion has been disclosed pursuant to this Clause 14.3 
  

 27 

	14.4	Nothing in this Clause 5 shall preclude disclosure of any Confidential Information required by any court entitled by law to disclosure of the same, or which is required by law to be
disclosed, provided that the Receiving Party promptly notifies the Disclosing Party when such requirement to disclose has arisen, to enable the Disclosing Party to seek an appropriate protective order and to make known to the said court the
proprietary nature of the Confidential Information and to make any applicable claim of confidentiality in respect thereof. The Receiving Party agrees to co-operate in any appropriate action which the Disclosing Party may decide to take. If the
Receiving Party is required to make a disclosure it shall only make a disclosure to the extent to which it is obliged. The parties agree that any submission or presentation to any competition law authority in relation to this Agreement shall be made
jointly, but nothing in this Clause 14 shall preclude the making of an appropriate submission or presentation to any competition law authority in response to a legal requirement imposed by a competition law authority provided that the party in
receipt of such a requirement promptly notifies the other party and consults with the other party as to the content of such submission or presentation. 

  

	14.5	Where Covion is the Receiving Party then it shall be entitled to disclose the Know-How to third parties where this is necessary in order to develop, market and/or sell Covion
Products, provided that in deciding whether to disclose such Know-How Covion uses the same criteria as it would if the Know-How belonged to Covion. 

  

	14.6	The provisions of this Clause 14 shall not apply to any information comprising Confidential Information which the Receiving Party can demonstrate to the reasonable satisfaction of
the Disclosing Party: 

  

	 	14.6.1	was already in the possession of the Receiving Party and at the Receiving Party’s free use and disposal or in the public domain prior to its disclosure by the Disclosing Party
hereunder; or 

  

	 	14.6.2	is legally acquired by the Receiving Party at any time from a third party having good title thereto and the unrestricted right to disclose the same; or 

  

	 	14.6.3	comes into the public domain, otherwise than through the fault of the Receiving Party; or 

  

	 	14.6.4	is independently generated by the Receiving Party without any recourse or reference to any Confidential Information disclosed by the Disclosing Party. 

  

 28 

	14.7	The obligations of the Receiving Party set out in this Clause 14 shall is respect of the Confidential Information of the Disclosing Party survive for a period of five years from the
termination of this Agreement. 

  

	15.	PERFORMANCE 

  
 During the continuance of this Agreement Covion shall: 
  

	15.1	use its reasonable commercial efforts to promote the sale of the Covion Products in the Territory; as widely as its resources reasonably permit. 

  

	15.2	not act as agent of CDT and specifically not give any indication that it is acting otherwise than as principal and in advertising or selling Covion Products not make any
representation or give any warranty on behalf of CDT. 

  

	16.	THIRD PARTY INFRINGEMENTS 

  

	16.1	Covion shall promptly inform CDT by way of notice in writing (giving as much by way of particulars as Covion has available to it to enable the same to be properly evaluated) of any
suspected infringement of the claims licensed to Covion under the Patents pursuant to Clauses 3, 7 and/or 8 of this Agreement by any third party which may come to Covion’s notice (or which Covion has reasonable grounds for believing is taking
place) at any time during the period referred in Clause 11.2 during which Covion is paying royalties to CDT under this Agreement and in respect of which Covion requires CDT to take action (the date such notice is served on CDT being hereinafter
referred to as the “Notification Date”). CDT shall be obliged to respond to any such notice within thirty (30) days of the date of service informing Covion as to whether it will take any action in respect of the suspected
infringement. 

  

	16.2	If CDT elects to take any action in respect of any such suspected infringement, it will do so at its own expense and shall keep Covion informed as to the action being taken or to be
taken and the progress thereof. CDT undertakes to pursue any such action diligently as CDT’s resources reasonably permit and in accordance with good industrial and commercial practice. 

  

	16.3	If CDT elects not to take any action or does not take any action within a reasonable period of time, then Covion shall be entitled at its own expense to take such action (whether by
way of court proceedings or otherwise) as it deems appropriate in respect of this suspected infringement and will keep CDT informed as to the action being taken or to be taken and the progress thereof; for this purpose CDT will at its own expense
provide such in-house assistance and information as Covion may reasonably require and shall permit Covion to use the name of CDT in any such action taken by Covion provided Covion pays due 

  

 29 

 regard to CDT’s reasonable directions as to the conduct of action. In such circumstances if Covion
takes action in respect of a suspected infringement where the sale or any other aspect of the exploitation of a Covion OSC Product falls within the claims involved in the suspected infringement and but for such claims Covion would not be obliged to
pay any royalty to CDT in respect of such Covion OSC Product, then the provisions of Clause 16.4 shall not apply to such infringement. If Covion does not take any action then save in respect of any such suspected infringement covered by the
provisions of Clause 16.4 no further action is necessary by either party in respect of the said infringement. 
  

	16.4	Where the sale or any other aspect of the exploitation of a Covion OSC Product falls within the claims involved in any such suspected infringement and but for such claims Covion
would not be obliged to pay any royalty to CDT in respect of such Covion OSC Product then no further royalty shall be due or payable with effect from the Notification Date in respect of the said claims unless or until: 

  

	 	16.4.1	CDT institutes legal proceedings for infringement against the third party; or 

  

	 	16.4.2	CDT provides Covion with the opinion of Queens Counsel obtained pursuant to the provisions of Clause 16.5 that there is insufficient evidence for an actionable case for infringement
proceedings against the third party with a realistic prospect of a favourable outcome, 

  
 following which Covion shall account to CDT on the next date on which a royalty is to be paid for all royalties in respect of the Covion OSC Products
falling within such claims which have not been paid since the Notification Date. In such circumstances if CDT then fails to pursue diligently any legal proceedings for infringement once instituted or the result of the legal proceedings is that the
particular claims are revoked due to invalidity or CDT notifies Covion that it does not intend to take legal proceedings for infringement where CDT has not obtained the opinion referred to in Clause 16.4.2 above, then in each case, the licence
provided for in Clause 3 or 8 (as the case may be) shall in respect of the particular claims, solely as regards the relevant Covion OSC Product(s), become royalty-free in relation to that part of the Territory covered by the specific patent
containing the particular claims involved in the suspected infringement with effect from the Notification Date and any relevant royalties paid by Covion relating to a period on or after the Notification Date shall be reimbursed to Covion by CDT
within 90 days. 
  

	16.5	Where the sale or any other aspect of the exploitation of a Covion OSC Product falls within the claims involved in the suspected infringement and but for such claims Covion would
not be obliged to pay any royalty to CDT in respect of such Covion OSC Product then if CDT is not satisfied that there is sufficient evidence 

  

 30 

 for an actionable case for infringement proceedings against the third party, it shall be entitled to
refer the matter to a Queens Counsel reasonably acceptable to both parties acting reasonably, with the costs of referral being shared by the parties equally. Both parties shall at their own respective costs diligently provide such Queens Counsel
with all necessary assistance and evidence regarding the matter in order to allow the Queens Counsel to provide a properly reasoned and informed opinion. Such opinion shall state whether there is sufficient evidence for an actionable case for
infringement proceedings against the third party with a realistic prospect of a favourable outcome. 
  

	16.6	Any damages, fees, costs, royalties or other monies recovered from any third party by either party as a result of any action taken by that party in accordance with this clause 16
shall be retained by that party. 

  

	16.7	If Covion takes infringement proceedings in accordance with Clause 16.3 then Covion shall be entitled to deduct from the royalties payable to CDT pursuant to this Agreement 50% of
their reasonable unrecovered costs in respect of the infringement proceedings (for these purposes any damages, fees, costs, royalties or other monies recovered from any third party involved shall be deemed deducted from any reasonable unrecovered
costs) up to a maximum of one half of the royalties payable to CDT under this Agreement after the Notification Date for such infringement. Where the infringement proceedings commenced by Covion in accordance with Clause 16.3 involve claims where the
sale or any other aspect of the exploitation of a Covion OSC Product falls within such claims and but for such claims Covion would not be obliged to pay any royalty to CDT in respect of such Covion OSC Product, then Covion’s right of recovery
pursuant to this Clause 16.7 shall be limited to one half of the royalties payable to CDT under this Agreement in respect of the Covion OSC Products concerned after the Notification Date for such infringement. 

  

	16.8	Any deduction/right of recovery referred to in Clause 16.7 shall only commence with the first royalty payment date after the infringement proceedings have finished and Covion’s
aggregate unrecovered costs have been ascertained. Such deduction shall then be made from such royalty payment and each subsequent royalty payment until Covion have recovered 50% of their reasonable unrecovered costs in respect of the infringement
proceedings (taking into account any recoveries referred to in Clause 16.7) provided always that Covion shall not be able to deduct more than 50% of the royalty payment due to CDT on any particular royalty payment date. In the event that Covion have
not recovered 50% of their reasonable unrecovered costs in respect of the infringement proceedings (taking into account any recoveries referred to in Clause 16.7) by the date on which the last royalty payment is made to CDT under this Agreement
(“the Final Royalty Payment Date”), CDT shall pay the balance of any such costs not yet paid to Covion within 60 days of the Final Royalty Payment Date. 

  

 31 

	17.	MAINTENANCE OF PATENTS 

  
 CDT shall during that part of the term of this Agreement during which Covion is paying royalties to CDT as contemplated hereunder keep in force at its
expense the Patents under which claims are licensed to Covion pursuant to Clauses 3, 7 and 8 of this Agreement. However Covion and CDT shall discuss from time to time the scope of the Patents under which claims are licensed to Covion pursuant to
Clauses 3, 7 and 8 of this Agreement in conjunction with the types of organic semiconductors being developed and the Covion Products being sold in order to allow CDT to actively manage its patent portfolio and the costs relating thereto in a cost
effective and sensible manner, taking into account all relevant circumstances. Covion shall be notified by CDT in writing if CDT decides to abandon or surrender any of the Patents which contain any claims licensed to Covion in accordance with
Clauses 3,7 and 8 of this Agreement and any such Patents shall first be offered to Covion. CDT may without any recourse abandon, surrender or otherwise allow such Patents to lapse unless Covion notifies CDT within 2 (two) months of notification that
Covion wishes to take ownership of any such Patents whereupon Covion shall be responsible for preparing the assignment and will bear all patent office costs and all taxes associated with transferring and registering assignment of such Patent from
CDT to Covion. Where such Patent contains claims where the sale or any other aspect of the exploitation of a Covion OSC Product falls within such claims and but for such claims Covion would not be obliged to pay any royalty to CDT in respect of such
Covion OSC Product then no further royalty in respect of the Covion OSC Product(s) in question shall be payable in respect of the claims under such Patent from the date on which the assignment is executed. 
  

	18.	TERM AND TERMINATION 

  

	18.1	This Agreement shall come into effect on the Effective Date and unless terminated earlier in accordance with the following provisions of this clause shall remain in force until the
later of the date when the last of the Patents licensed to Covion pursuant to Clauses 3 to 8 of this Agreement expires, lapses, becomes abandoned or is revoked following a final decision from which no further appeal is possible and the date when the
last of the Know-How comes into the public domain. On the date on which the last of the Patents licensed to Covion pursuant to Clauses 3 to 8 of this Agreement expires, lapses, becomes abandoned or is revoked following a final decision from which no
further appeal is possible, the licences granted pursuant to Clauses 6.1, 7.3 and 8.3 shall become sole licences. For the avoidance of doubt once a particular piece of Know-How comes into the public domain (other than through the fault of CDT) the
licences granted pursuant 

  

 32 

 to Clauses 6.1, 7.3 and 8.3 shall become non-exclusive licences in respect of that particular piece of
Know-How. Also for the avoidance of doubt any CDT Group Company shall be able to exploit any claim exclusively licensed to Covion pursuant to this Agreement in a patent comprised in the Patents once that patent expires, lapses, is abandoned or is
revoked following a final decision from which no further appeal is possible unless Covion is still paying royalties on Covion OLEM Products in which case no CDT Group Company shall be able to exploit any such claim in the Field until Covion ceases
to pay such royalties. 
  

	18.2	In the event that either party is in material breach of the terms of this Agreement and, in the case of a breach capable of being remedied, fails to remedy that breach within thirty
days of receiving written notice specifying that breach and requiring the same to be remedied, the other party may terminate this Agreement forthwith by notice in writing. 

  

	18.3	In the event that: 

  

	 	18.3.1	Covion has a liquidator, receiver, administrator or administrative receiver appointed in respect of the whole or any material part of its undertaking or assets or enters into any
arrangement or composition with its creditors or calls a meeting of its creditors or is the subject of an order made or resolution passed for its winding up, whether voluntarily or compulsorily (except for the purposes of a bona fide reconstruction
or amalgamation) or has an event analogous to any of those referred to above happen to it under the laws of any jurisdiction in which it is constituted or registered; and 

  

	 	18.3.2	whilst such an event referred to in Clause 18.3.1 is continuing (but not after it ceases) Covion fails to pay within fourteen days of demand any sum due and payable under this
Agreement, 

  
 then CDT may terminate this
Agreement forthwith by notice in writing to Covion. 
  

	18.4	Save as provided in Clause 4.4, CDT may terminate this Agreement forthwith if Covion has after the date of this Agreement taken directly or indirectly any steps to seek to establish
the invalidity of, or otherwise oppose, any of the Patents licensed to Covion pursuant to Clauses 3 to 8 of this Agreement or to procure or assist any third party to do so provided that this shall not apply to any such steps taken incidentally or
inadvertently or which Covion can show were otherwise not taken with the intention of so assisting the third party. 

  

	18.5	Covion shall procure that the provisions of clauses 18.1 to 18.4 shall apply, with only the necessary changes having been made, to any sub-licences granted by Covion hereunder, to
the intent that CDT shall have in respect of sub-licensees the same rights as it has in respect of Covion. 

  

 33 

	19.	CONSEQUENCES OF TERMINATION 

  

	19.1	Termination of this Agreement and of any licences granted hereunder shall be without prejudice to the rights of either party which have accrued up to the date of termination
including, without limitation, the rights of CDT to sue for and recover any royalties or other payments then due and to pursue any remedy in respect of any breach by Covion of any of the terms of this Agreement. 

  

	19.2	Covion shall have the right to sell any stocks of Covion Products which have been manufactured but which remain unsold at the date of termination subject to the payment to CDT of
the relevant royalty pursuant to Clause 11 and such sales being made no later than 6 months after such termination. 

  

	19.3	The provisions of Clauses 11 and 12 of this Agreement relating to the payment of royalties and other sums and the rendering and auditing of accounts and other information shall
remain in force as long as may be necessary in order to wind up the outstanding obligations of both parties hereunder. 

  

	19.4	Upon the termination of this Agreement for any reason the provisions of Clauses 1, 11 and 12 (as provided for in Clause 19.3 above), 14, 19, 20 and 22 shall continue in force in
accordance with their respective terms. 

  

	20.	NATURE OF AGREEMENT 

  

	20.1	Each party acknowledges that in entering into this Agreement it places no reliance on any representation or warranty relating to the subject matter of this Agreement save as
expressly set out in this Agreement and each party shall have no liability in respect of any representation, warranty or promise made prior to the date of this Agreement unless it was made fraudulently. This Agreement represents the entire agreement
between the parties in relation to the subject matter of this Agreement and supersedes any previous agreement or undertaking between the parties and may not be modified except by an instrument in writing and signed by duly authorised representatives
of both parties. 

  

	20.2	Should any provision of this Agreement, be held to be illegal, invalid or unenforceable in any respect by any judicial or other competent authority under the law of any
jurisdiction: 

  

	 	20.2.1	such provision shall, so far as it is illegal, invalid or unenforceable in any jurisdiction, be given no effect by the parties and shall be deemed not to be included in this
Agreement in that jurisdiction; 

  

	 	20.2.2	the other provisions of this Agreement shall be binding on the parties in that jurisdiction as if such provision were not included herein; 

  

 34 

	 	20.2.3	the legality, validity and enforceability of the provision in any other jurisdiction shall not be affected or impaired; and 

  

	 	20.2.4	the parties agree to negotiate in good faith to amend such provision to the extent possible for incorporation herein in such reasonable manner as most closely achieves the intention
of the parties without impairing the parties’ original interests and without rendering such provision invalid or unenforceable. 

  

	20.3	No delay or omission on the part of any party to this Agreement in exercising any right, power or remedy provided by law or under this Agreement shall impair such right, power or
remedy; or operate as a waiver thereof. 

  

	20.4	The single or partial exercise of any right, power or remedy provided by law or under this Agreement shall not preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. 

  

	20.5	The rights, powers and remedies provided in this Agreement are cumulative and not exclusive of any rights, powers and remedies provided by law. 

  

	20.6	Nothing in this Agreement shall be construed so as to constitute either party to be the agent of the other. 

  

	20.7	Nothing in this Agreement and no action taken by the parties pursuant to this Agreement shall constitute a partnership or joint venture of any kind between the parties hereto.

  

	20.8	This Agreement shall be binding on the successors and permitted assigns of the parties. 

  

	20.9	Unless expressly provided in this Agreement, no term of this Agreement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party
to it. 

  

	20.10	The parties shall make all reasonable endeavours to reach an amicable settlement of any dispute, controversy or difference that may arise between the parties out of or in relation
to this Agreement. In the event of any dispute, controversy or difference that may arise the parties shall in the first instance promptly refer the matter to the parties’ senior business managers. Should the senior business managers be unable
to resolve the dispute within 20 days of the matter being referred to them then the parties shall then promptly refer the matter to a director of each of the parties. Should the directors be unable to resolve the dispute within 20 days of the matter
being referred to them then the matter shall be finally settled, without right of appeal, in accordance with the Rules of Conciliation and 

  

 35 

 Arbitration of the International Chamber of Commerce by an arbitrator or arbitrators appointed in
accordance with said Rules. Such arbitration shall take place in London, England. The provisions of this clause shall not prejudice the application of Clause 18 and shall also not apply to any breach of clause 14 (Confidentiality) which shall be
subject to the non-exclusive jurisdiction of the English courts and for these purposes Covion appoints Avecia Limited as its agent to accept service. 
  

	20.11	Each party will at all times act in the utmost good faith towards the other in connection with this Agreement and the matters referred to therein. 

  

	20.12	Neither party shall make any announcement with respect to the arrangements contemplated by this Agreement without the written consent of the other as to the form content, and timing
of the announcement (such consent not be unreasonably withheld or delayed). 

  

	20.13	Notwithstanding Clauses 14.1 and 20.12 the parties shall make a joint announcement within 60 days of the signature of this Agreement. The text of such announcement shall be agreed
by the parties and it shall not be made public until such agreement is reached. 

  

	20.14	This Agreement has been duly executed and delivered by CDT and all obligations of CDT therein are legal, valid and binding obligations which are enforceable against CDT in
accordance with their terms. In particular the granting of the licences over the Patents and Know-How does not violate any law, statute, ordinance, regulation, order, judgment or decree of any court or governmental agency applicable to any CDT Group
Company, or violate, or conflict with, any contract, commitment, agreement, understanding or arrangement of any kind to which any CDT Group Company is a party or by which any CDT Group Company is bound. CDT shall ensure and guarantee to Covion that
any CDT Group Company that owns any Patents and/or Know-How will comply with all obligations in this Agreement as if such CDT Group Company were party to this Agreement. Any act or omission of such CDT Group Company shall be deemed to be the act or
omission of CDT pursuant to this Agreement. 

  

	20.15	In respect of any claims under the Existing Patents and/or the Future Patents that relate to or concern the design, development or fabrication of Devices which make reference to any
Relevant Materials or formulations containing Relevant Materials, CDT hereby confirms and undertakes to Covion that all CDT’s Device licensees will have been offered, and will continue to be offered, as part of CDT’s standard offering(s),
licences under the Existing Patents and the Future Patents to all such claims not licensed to Covion under this Agreement. 

  

 36 

	21.	NOTICES 

  

	21.1	All notices and other communications given or made in relation to this Agreement: 

  

	 	21.1.1	shall be in English and in writing; 

  

	 	21.1.2	shall be delivered by hand or sent by express courier (e.g. DHL) or by facsimile; 

  

	 	21.1.3	shall be delivered or sent to the party concerned at the relevant address or facsimile number, shown in clause 21.2 subject to such amendments as may be notified from time to time
in accordance with this clause by the relevant party to the other party by no less than 3 Business Days’ notice; and 

  

	 	21.1.4	shall be deemed to have been duly given or made if addressed in the aforesaid manner: 

  

	 	(i)	if delivered by hand, upon delivery; 

  

	 	(ii)	if posted by express courier, on the date of receipt; and 

  

	 	(iii)	if sent by facsimile, when a complete and legible copy of the communication has been received at the appropriate address; 

  
 provided that if any notice or other communication would otherwise become
effective on a non-Business Day or after 5.00 p.m. on a Business Day, it shall instead be deemed to be given or made at 10.00 a.m. on the next Business Day. 
  

	21.2	The initial details for the purposes of clause 21.1 are: 

  

			
	 Covion:
	  	 Covion Organic Semiconductors GmbH

	 	  	 Industriepark Hoechst, Gebaude G864

	 	  	 D-65926 Frankfurt am Main

	 	  	 Germany

	 	  	 Facsimile No.: +49 69 3054 7570

	 	  	 For the attention of: Managing Director

  

 37 

			
	 with a copy to:
	  	 Avecia Limited

	 	  	 Legal Affairs Department

	 	  	 PO Box No. 42, Hexagon House

	 	  	 Blackley, Manchester

	 	  	 M9 8ZS

	 	  	 England

	 	  	 Facsimile No.: +44 161 721 1886

	 	  	 For the attention of: Company Secretary

		
	 CDT:
	  	 Cambridge Display Technology Limited

	 	  	 Greenwich House, Madingley Rise

	 	  	 Madingley Road, Cambridge

	 	  	 CB3 0HJ

	 	  	 England

	 	  	 Facsimile No.: +44 1223 723503

	 	  	 For the attention of Dr D. Fyfe

  

	21.3	For the purposes of this clause 21, “Business Day” shall mean any day other than a Saturday, Sunday or Bank or Public Holiday in the United Kingdom or Germany.

  

	22.	GOVERNING LAW AND JURISDICTION 

  
 The construction, validity and performance of this Agreement shall be governed by the laws of England. 
  

	23.	COUNTERPARTS 

  
 This Agreement may be entered into in any number of counterparts and by the parties to it on separate counterparts each of which when executed and delivered shall be an original but all these counterparts shall
together constitute one and the same instrument. 
  

 38 

 IN WITNESS whereof the parties have executed this Agreement on the date first above written. 
  

			
	 Signed for and on behalf of

	 CAMBRIDGE DISPLAY TECHNOLOGY LIMITED

	  
 (Signature)
	 	  
 /s/ David Fyfe

	 (Name)
	 	 David Fyfe

	  
 (Position)
	 	  
 CEO

	  
 (Date)
	 	  
 14 December
2001

  

			
	Signed for and on behalf of 
	 COVION ORGANIC SEMICONDUCTORS GMBH

	  
 (Signature)
	 	  
 /s/ Hermann Schenk

	 (Name)
	 	 Hermann Schenk

	  
 (Position)
	 	  
 Geschäftsführer

	  
 (Date)
	 	  
 14/12/01

  

 39Contract Research Agreement, dated December 14, 2001

 Exhibit 10.20 
  
 CONTRACT RESEARCH AGREEMENT 
  

CDT INTERNATIONAL LIMITED (1) 
  
 AND 
  
 COVION ORGANIC SEMICONDUCTORS GMBH (2) 
  
 CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED FROM THIS DOCUMENT. SUCH OMISSIONS ARE NOTED BY “[**]”. AN UNREDACTED VERSION OF THIS DOCUMENT
HAS BEEN SUBMITTED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION. 

 CONTRACT RESEARCH AGREEMENT 
  
 THIS AGREEMENT is made the 14 day of December 2001 between: 
  

	(1)	CDT INTERNATIONAL LIMITED, a company incorporated in Bermuda whose registered office is situated at PO Box HM1556, Corner House Church, Parliament Street, Hamilton HMFX,
Bermuda (“CDT”); and 

  

	(2)	COVION ORGANIC SEMICONDUCTORS GMBH, a company incorporated in Germany whose principal place of business is situated at Industriepark Hoechst, Gebaude G864, D-65926, Frankfurt
am Main, Germany (“Covion”). 

  
 RECITALS:

  

	(A)	CDT has, and/or has an Affiliate which has, scientists skilled in the art of the design and development of organic semiconductors and CDT is prepared to carry out, and/or procure
that such Affiliate carries out, research and development into this area on behalf of Covion. 

  

	(B)	Covion has considerable experience and valuable technical and commercial information and know-how in the field of organic semiconductors and wishes CDT to carry out, and/or procure
the carrying out by such Affiliate of CDT of, contract research and development on behalf of Covion. 

  

	(C)	The Parties therefore wish to enter into this Agreement to specify as between CDT and Covion the terms and conditions of the working relationship between CDT and/or CDT’s
Affiliate and Covion in relation to the design and development of organic semiconductors. 

  
 IT IS HEREBY AGREED AS FOLLOWS: 
  

	1.	DEFINITIONS 

  

	1.1	In this Agreement including its Schedules, the headings are included for ease of reference only and shall not affect its interpretation and the following terms shall have the
following meanings unless the context otherwise requires: 

  
 “Affiliate” means, at the relevant time, any business entity which controls, is controlled by or is under common control with the business entity referred to but in each case only for so long as such
control or common control relationship exists; for the purposes of this definition a business entity shall be deemed to “control” another business entity if it owns, directly or indirectly, in excess of 50% of the outstanding voting
securities or capital stock of such business entity or any other comparable equity or ownership interest with respect to a business entity other than a corporation. 
  

 2 

 “Assigned Patent” means patent application WO 00/55927 (together with the rights to all
Patents claiming priority therefrom including associated or national regional patents and continuations thereof). 
  
 “Avecia Group Company” means Avecia Limited (a company incorporated in England with company number 3730853) or any Affiliate of Avecia.

  
 “Calendar Quarter” means the period from the
Effective Date to 31st March 2002 and thereafter each successive period of three (3) months ending on, 30th June,
30th September, 31st December and 31st March. 
  
 “CDT Group Company” means CDT or any Affiliate of CDT. 
  
 “CDT Limited” means Cambridge Display Technology Limited (a company incorporated in England with company
number 2672530). 
  
 “Confidential Information”
means all confidential information disclosed by one party or any of its Affiliates (“the Disclosing Party”) to the other party or any of its Affiliates, (“the Receiving Party”) pursuant to this Agreement in written
verbal or any other form, including, without limitation, data, know-how, formulae, compositions, designs, photographs, drawings, specifications, software program, samples, any product made using the samples and any other material bearing or
incorporating any information relating to such information. 
  
 “Covion Group Company” means Covion or any Affiliate of Covion. 
  
 “Covion Licensee” means any Covion Group Company, any Avecia Group Company, any Relevant Joint Venture of any Covion Group Company and/or any Relevant Joint Venture of any Avecia Group Company;

  
 “Covion OLEM Products” means conjugated
Polymeric OLEMs (other than PLEMs) or formulations containing conjugated polymeric OLEMs (other than PLEMs) sold pursuant to a supply agreement for use in the Field. 
  
 “Covion OSC Products” means organic semiconductors or formulations containing organic semiconductors sold
pursuant to a supply agreement for use outside the Field where the sale or any other aspect of the exploitation of such organic semiconductors or formulations containing organic semiconductors by Covion or any Covion Licensee or by a direct customer
of Covion or any Covion Licensee has taken place in a country in which such sale or other aspect of the exploitation falls within any of the then still valid claims licensed to Covion under a patent covering that country in accordance with the
Patent and Know-How Licence or falls within any of: 
  

	 	(a)	the then still valid claims in a patent covering that country owned by Covion for an invention covered by Clause 7.5 of this Agreement; or 

  

 3 

	 	(b)	the know-how owned by Covion for an invention which is considered to be equivalent to a patent in that country pursuant to clause 7.5 of this Agreement. 

  
 “Covion Products” means Covion OLEM Products and/or Covion
OSC Products. 
  
 “Device Facilities” means CDT
Limited’s physics and Device facilities in Cambridge. 
  
 “Devices” means devices containing organic semiconductors. 
  
 [**] 
  
 “Effective
Date” means the date of this Agreement. 
  
 “Existing Patents” means the patents and/or patent applications owned or to be owned by any CDT Group Company or to which any CDT Group Company has/will have relevant rights which enable such CDT Group Company to
license/sub-license third parties and which in either case are for inventions, made prior to the Effective Date which were not made or otherwise acquired pursuant to or as part of a pre-existing relevant business by a CDT Group Company at any time
before it became an Affiliate of CDT. 
  
 “exploitation” means manufacture, import, keeping, use and/or sale (including in relation to any such activity offering to do any of these). 
  
 “Field” means the field of displays and lighting. 
  
 “Intellectual Property Rights” means patents, designs,
design rights, copyright, right in know-how and other intellectual property rights, in each case whether registered or unregistered and including applications for the grant of any of the foregoing and all rights or forms of protection having
equivalent or similar effect to any of the foregoing which may subsist anywhere in the world. 
  
 “Materials Evaluation Agreement” means the agreement to be entered into between CDT Limited and Covion in the form set out in Schedule 1 to this Agreement contemporaneously with this Agreement.

  

 4 

 “Net Sales Value” means the gross invoice price for sales on an arm’s length basis
of Covion Products by Covion or any Covion Licensee to any third party (i.e. an entity other than Covion or a Covion Licensee), less 
  

	 	(i)	the cost of packaging (not forming part of the Covion Products), transportation and insurance; 

  

	 	(ii)	commissions, early payment discounts (but only where these are in accordance with local business custom and practice), trade discounts or quantity discounts actually granted;

  

	 	(iii)	allowances or credits actually granted to customers on account of settlement of complaints, returns and replacements; and 

  

	 	(iv)	sales taxes and/or other taxes and/or tariff duties directly imposed on sales of Covion Products. 

  
 Where Covion Products are sold other than on an arm’s length basis to a third party (i.e. an entity other than Covion
or a Covion Licensee), the Net Sales Value shall be deemed to be the average gross invoice price obtained by Covion or the relevant Covion Licensee (as the case may be) for sales on an arm’s length basis over the six months immediately
preceding the transaction in question less those items specified above. 
  
 “OLEMs” means organic light-emitting materials. 
  
 “Patent and Know-How Licence” means the patent and know-how licence of even date herewith between CDT Limited and Covion. 
  
 “PLEMs” means (a) Polyfluorenes; (b) solid compositions
containing Polyfluorenes in an amount of at least one percent (1%) by weight; and (c) solutions containing “Polyfluorenes” including formulations for ink jet printing; for the purposes of this definition “Polyfluorenes”
means any polymer having substituted or unsubstituted 2,7-linked fluorene mer units but does not include polymer where all the fluorene units are spirofluorenes or indenofluorenes. 
  
 “Project” means a research and development programme concerning the use of OLEMs in the Field designated by
Covion pursuant to this Agreement. 
  
 “Relevant CDT
Group Company” means CDT and/or any relevant Affiliate of CDT engaged by CDT pursuant to clause 2.1. 
  
 “Relevant Joint Venture” means any joint venture in which the business entity referred to has at least a 50% interest in the outstanding
voting securities or capital stock of such joint venture or any other comparable equity or ownership interest with respect to a business entity other than a corporation. 
  

 5 

 “Results” means all information, results, inventions, improvements, discoveries,
hypotheses, developments, scientific knowledge and know-how conceived as a direct consequence of work conducted pursuant to any Project under this Agreement or using the Confidential Information of Covion provided under this Agreement whether
conceived solely by any CDT Group Company personnel or Covion personnel or jointly by any CDT Group Company personnel and Covion. 
  
 “Royalty Income” means any income (after deduction of any taxes imposed directly on such income) from sales of organic semiconductors
obtained by Covion or any Covion Licensee from the licensing to any third party (i.e. an entity which is not a Covion Licensee) of any patent owned at any time by Covion for an invention covered by Clause 7.5 of this Agreement or any know-how owned
at any time by Covion for an invention which is considered to be equivalent to a patent in certain countries pursuant to Clause 7.5 of this Agreement. 
  
 “Third Party Patent” means any patent or patent application belonging to a party unconnected with any party to this Agreement with a
priority date on or prior to the Effective Date. 
  

	1.2	A reference to any party to this Agreement shall include a reference to its legal successors and permitted assignees. 

  

	1.3	References to recitals, clauses, paragraphs, and schedules, are to recitals, clauses paragraphs and schedules to this Agreement. 

  

	1.4	The Schedules form part of this Agreement and shall have the same force and effect as if expressly set out in the body of the Agreement and any reference to the Agreement shall
include the Schedules. 

  

	1.5	References to writing shall include any mode of reproducing words in a legible and non-transitory form. 

  

	1.6	References to “£” and “pounds sterling” are references to the currency of the United Kingdom. 

  

	2.	SPECIFICATION AND PERFORMANCE OF PROJECTS 

  

	2.1	CDT shall provide (or shall procure the provision by a CDT Affiliate of) the full time effort of at least ten graduate scientists skilled in the art of the design and development of
organic semiconductors (of whom a minimum of five must be educated to phD level) to carry out Projects pursuant to this Agreement and 

  

 6 

 sufficient time of a skilled project manager to oversee this work within the Relevant CDT Group Company
(“CDT Project Manager”). CDT shall ensure that any scientists involved in any Project will not work on projects within any CDT Group Company to develop organic semiconductors for third parties or on any independent projects to
develop organic semiconductors within any CDT Group Company. 
  

	2.2	Covion shall also appoint a skilled project manager to work with the CDT Project Manager in directing the Projects (“Covion Project Manager”). The Covion Project
shall designate the scope, the targets and the associated work programmes for each Project in consultation with the CDT Project Manager. The CDT Project Manager will provide a written monthly report to the Covion Project Manager on the progress and
direction of each Project and they will otherwise meet as necessary in order to assess the Progress and direction of each Project. 

  

	2.3	The actual work under each Project may be carried out solely by the Relevant CDT Group Company or by the Relevant CDT Group Company in collaboration with personnel of Covion. The
CDT Project Manager shall oversee any work done on a Project by Covion personnel at the Relevant CDT Group Company’s premises unless otherwise agreed with the Covion Project Manager. 

  

	2.4	CDT: 

  

	 	(a)	warrants that the Relevant CDT Group Company has the expertise and resources to perform research and development in the area of organic semiconductors; and 

 

	 	(b)	shall, or shall procure that the Relevant CDT Company shall, carry out the research and development under each Project with the care and skill reasonably to be expected of chemists
skilled in the art of the design and development of organic semiconductors but Covion acknowledges that no CDT Group Company gives any representation or warranty that any such work as is carried out pursuant to a Project will be successful in
achieving the objective of such Project. 

  

	2.5	All costs incurred by Covion pursuant to any project shall be borne by Covion. All costs incurred by the Relevant CDT Group Company pursuant to any Project shall (as between CDT and
Covion) be borne by CDT. Covion and the Relevant CDT Group Company shall each provide all necessary infrastructure and support to its staff up working on any Project (including in the case of Covion travel, lodging, meals and other living and
incidental expenses for such Covion personnel involved on any Project and the Covion Project Manager). The Relevant CDT Company shall make available such equipment and Support capacities as would reasonably be required to support a synthetic
chemistry 

  

 7 

 activity involving ten scientists and of a quality consistent with a state of the art industrial chemical
research organisation. Covion and the relevant CDT Group Company shall each fund its own efforts for carrying out each Project including, without limitation, funding manpower and capital resources. However no CDT Group Company can be required to
commit to external purchases of specialized monomers at a level that would be equivalent to commercial manufacturing scale (which for these purposes shall mean manufacture of one half of one kilogramme or more of an organic semiconductor).

  

	2.6	The research and development on each Project shall be carried out at CDT Limited’s Cambridge research and development facilities at the relevant time. The laboratories in which
the Projects will be carried out will comply with all UK COSHH requirements. The personnel of Covion involved in any Project and the Covion Project Manager shall be allowed access to such laboratories (subject to any normal security requirements)
and (subject to CDT Limited’s requirements and commitments in respect thereof) to use any relevant equipment during normal business hours in the same way as the Relevant CDT Group Company’s personnel working on such Project.

  

	2.7	CDT shall ensure that the Relevant CDT Group Company’s personnel and any Covion staff working on any Project shall, on reasonable notice and subject to CDT Limited’s
requirements and commitments in respect thereof, have such access free of charge as may be necessary in connection with any such Project to the Device Facilities solely for the purposes of research, development and testing in relation to OLEMs in
the Field. Covion staff shall also be entitled to make use of the Device Facilities free of charge solely for research and development in relation to organic semiconductors being carried out by Covion other than pursuant to or in connection with
ally projects during normal business hours on reasonable notice subject to CDT Limited’s requirements and commitments in respect thereof. 

  

	2.8	Any Project may be varied by the Covion Project Manager from time to time in consultation with the Relevant CDT Group Company so as to give the best opportunity to deliver the
objectives of such project. Each project shall be conducted by the Relevant CDT Group Company within overall parameters as agreed with Covion. 

  

	2.9	After completion of each stage of any Project, Covion and the Relevant CDT Group Company shall each in a timely manner communicate to the other in writing the Results.

  

	2.10	Representatives from Covion and the Relevant CDT Group Company involved in each Project shall meet at such times and in such places as the respective project managers shall agree in
order to discuss the progress of the Project, any issues arising and agree any modifications to the objective of the Project. 

  

 8 

	2.11	For the avoidance of doubt, any time periods specified for the carrying out of any Project shall be indicative only. 

  

	2.12	For the avoidance of doubt, it shall not be considered a breach of this Agreement by either Party (or any other Relevant CDT Group Company) if the objectives of any Project are not
achieved so long as Covion and the Relevant CDT Group Company each uses reasonable technical endeavours in the performance of its obligations. 

  

	2.13	Each party (and any other Relevant CDT Group Company) will at all times act in the utmost good faith towards the other party in connection with this Agreement and the research to be
carried out under it pursuant to any Project. Each party (and any other Relevant CDT Group Company) shall, in commissioning and carrying out individual Projects, act in accordance with good industrial and scientific practice.

  

	3.	LICENCE/RIGHTS TO COVION PATENTS AND KNOW-HOW 

  

	3.1	Covion hereby grants to the Relevant CDT Group Company solely for the benefit of those of its personnel working on any Project a non-exclusive licence under any patents and know-how
owned by Covion (or licensed to it) from time to time solely to allow such personnel to carry out research and development on Projects pursuant to this Agreement. 

  

	3.2	Covion shall in a timely manner provide in written or oral form (as the parties may agree) such know-how of or licensed to Covion in the field of organic semiconductors as Covion
considers those personnel of the Relevant CDT Group Company working on any Project may reasonably require to carry out research and development pursuant to any Project (subject to the confidentiality provisions referred to in paragraph 9 below).

  

	4.	CONSIDERATION 

  

	4.1	Covion shall, in respect of CDT’s agreement to provide (or procure the provision of): 

  

	 	4.1.1	the research and development work carried out by the Relevant CDT Group Company pursuant to this Agreement; 

  

 9 

	 	4.1.2	access to and use of the equipment of the Relevant CDT Group Company being used in any project in the research and development of organic semiconductors; and

  

	 	4.1.3	access to and use of the Device Facilities, 

  
 pay to CDT a royalty (excluding VAT or other sales tax if applicable) of [**] of the Net Sales Value of all Covion Products sold during the term of this
Agreement. 
  

	4.2	For the avoidance of doubt no royalties shall be payable on sales of Covion Products by Covion or any Covion Licensee to any CDT Group Company or any other company in which CDT owns
at least 25% of the equity share capital. Also for the avoidance of doubt royalties on any Covion Products manufactured by any toll manufacturer shall be payable on the subsequent sale of those products by Covion or any Covion Licensee and not on
the original sale by the toll manufacturer to them. 

  

	4.3	No royalties shall be due to CDT in respect of any Covion Products used by Covion or any Covion Licensee for the further development of Covion Products by Covion or any Covion
Licensee or for quality control procedures in the manufacture or sale of Covion Products or disposed of free of charge for the purposes of promoting the sale of Covion Products. 

  

	4.4	In this Agreement the expression “sold” or any cognate expression shall be deemed to include any type of supply for value. 

  

	4.5	Covion shall, in respect of CDT’s agreement to provide (or procure the provision of): 

  

	 	4.5.1	the research and development work carried out by the Relevant CDT Group Company pursuant to this Agreement; 

  

	 	4.5.2	access to and use of the equipment of the Relevant CDT Group Company being used in any project in the research and development of organic semiconductors; and

  

	 	4.5.3	access to and use of the Device Facilities, 

  
 also pay to CDT a royalty (excluding VAT or other sales tax if applicable) of [**] of the Royalty Income obtained by Covion or any Covion Licensee during
the term of this Agreement. 
  

	4.6	[**] 

  

 10 

	5.	ACCOUNTING AND PAYMENT 

  

	5.1	Royalties shall be payable yearly in arrears sixty (60) days after the end of the last day of each calendar year during the term of this Agreement with the last such payment to be
made within (60) days after the end of the last day of the calendar year during which this Agreement expires or terminates. 

  

	5.2	Covion shall, and shall Procure that any Covion Licensee shall keep at its usual place of business records of account sufficient to enable accurate calculations of royalties due to
CDT and shall produce and present to CDT a statement of those royalties no later than sixty (60) days after the end of each calendar year during the term of this Agreement. If there is a dispute between the parties about the amount of royalties
payable, the Parties shall select an independent accountant to be agreed between them, or in default of agreement to be appointed by the President for the time being of the Institute of Chartered Accountants in England and Wales, to inspect the
records of Covion and/or any Covion Licensee on reasonable notice and during normal business hours to verify Covion’s statements and royalty payments due pursuant to this Agreement. If such inspection reveals that any statement or payment shall
not have been rendered or made in accordance with the terms of this Agreement, or that any statement rendered or payment made by Covion was inaccurate by more than five per cent (5%) then Covion shall pay the cost of such inspection without
prejudice to any other remedies or claims of CDT. Such accountant shall not disclose to CDT any information other than information relating to royalties owed by Covion pursuant to this Agreement. CDT shall maintain in confidence and shall oblige the
independent accountant to maintain in confidence all information received pursuant to this subclause. The decision of the independent accountant as to the amount of royalty Payment to be made shall, in the absence of manifest error, be final and
binding upon the parties. 

  

	5.3	All royalties shall be calculated in the currency in which Covion keeps its accounts and shall be paid to CDT in euros in London to the credit of a bank 

  

 11 

 account to be designated in writing by CDT the rate of conversion being the relevant buying rate of HSBC
Bank plc at close of business on the last business day of the before the day payment is due. 
  

	5.4	All sums shall be paid in full without deductions or set-off, except only for such taxes, or other levies or duties as Covion is legally bound to withhold. Covion shall assist CDT
without charge to recover (under the provisions of double tax conventions or other lawful manner) any tax so withheld. If VAT is payable on any of the royalties then Covion shall pay VAT pursuant to a VAT invoice to be submitted by CDT.

  

	6.	CONFIDENTIALITY 

  

	6.1	All Results shall be deemed to be the Confidential Information of Covion. 

  

	6.2	Without the prior written consent of the other party (which shall not be unreasonably withheld or delayed), neither party (nor any of its Affiliates) shall disclose to any third
party the existence of this Agreement, any part of the contents or terms and conditions of this Agreement, that any Project is taking place or has taken place or the status thereof at any time or any other facts in respect of this Agreement or any
Project. 

  

	6.3	In consideration of the Disclosing Party disclosing or otherwise making available any Confidential Information to the Receiving Party, the Receiving Party hereby undertakes:

  

	 	6.3.1	not to use the Confidential Information of the Disclosing Party for any purpose other than for the purpose of a Project pursuant to this Agreement (“the Purpose”);

  

	 	6.3.2	where the Receiving party is any CDT Group Company, to ensure that the CDT Project Manager and any CDT scientists Involved in any Project shall not disclose any Confidential
Information of Covion (including Results) to any other director, employee and/or other personnel of any CDT Group Company; 

  

	 	6.3.3	to maintain the confidentiality of the Confidential Information and not to disclose it directly or indirectly to any third party, whether an affiliated company, organisation,
individual or otherwise, save as permitted by Clauses 6.4 and 6.5; and 

  

	 	6.3.4	to take reasonable and appropriate measures to secure the confidentiality attaching to the Confidential Information of the Disclosing Party and safeguard it against theft, loss or
negligent disclosure to others, including but not limited to the same measures as the Receiving Party takes to protect its own confidential information. 

  

 12 

	6.4	Covion may solely for the purposes of the Projects contemplated by this Agreement disclose Confidential Information of any CDT Group Company to: 

  

	 	6.4.1	any of its Affiliates provided that Covion shall procure that prior to such disclosure each Affiliate to which Confidential Information is to be disclosed is made aware of the
obligations contained in this Agreement and agrees to be subject to confidentiality obligations no less onerous than those contained in this Agreement; any breaches of the obligations of confidentiality contained in this Agreement by such Affiliates
shall be treated as a breach of such obligations by Covion; and 

  

	 	6.4.2	its directors and employees and/or other personnel (and to the directors and employees and/or other personnel of the Affiliates to whom disclosure may be in accordance with Clause
6.4.1) who need to know the Confidential Information in order to fulfil the Purpose, provided that Covion shall procure that prior to such disclosure each of those directors and employees and/or other personnel to whom Confidential Information is to
be disclosed is made aware of the obligations of confidentiality and non-use herein contained and any breaches of the obligations of confidentiality contained in this Agreement by such directors and employees and/or other personnel (and directors
and employees and/or other Personnel of such Affiliates) shall be treated as a breach of such obligations by Covion. 

  
 Any reference to the Receiving party in Clause 6.6 where such Receiving Party is Covion shall be deemed to include reference to its Affiliates to whom
Confidential Information of any CDT Group Company has been disclosed pursuant to this Clause 6.4. 
  

	6.5	Nothing in this Clause 6 shall preclude disclosure of any Confidential Information required by any court entitled by law to disclosure of the same, or which is required by law to be
disclosed, provided that the Receiving Party promptly notifies the Disclosing Party when such requirement to disclose has arisen, to enable the Disclosing Party to seek an appropriate protective order and to make known to the said court the
proprietary nature of the Confidential Information and to make any applicable claim of confidentiality in respect thereof. The Receiving Party agrees to co-operate in any appropriate action which the Disclosing Party may decide to take. If the
Receiving Party is required to make a disclosure it shall only make a disclosure to the extent to which it is obliged. The parties agree that any submission or presentation to any competition law authority in relation to this Agreement shall be made
jointly, but nothing in this Clause 6 shall preclude the 

  

 13 

 making of an appropriate submission or presentation to any competition law authority in response to a
legal requirement imposed by a competition law authority provided that the party in receipt of such a requirement promptly notifies the other party and consults with the other party as to the content of such submission or presentation. 

 

	6.6	The provisions of this Clause 6 shall not apply to any information comprising Confidential Information which the Receiving Party can demonstrate to the reasonable satisfaction of
the Disclosing Party: 

  

	 	6.6.1	was already in the possession of the Receiving Party and at the Receiving Party’s free use and disposal or in the public domain prior to its disclosure by the Disclosing Party
hereunder; or 

  

	 	6.6.2	is legally acquired by the Receiving Party at any time from a third party having good title thereto and the unrestricted right to disclose the same; or 

  

	 	6.6.3	comes into the public domain, otherwise than through the fault of the Receiving Party; or 

  

	 	6.6.4	is independently generated by the Receiving Party without any recourse or reference to any Confidential Information disclosed by the Disclosing Party. 

  

	6.7	The obligations of the Receiving Party set out in this Clause 6 shall in respect of the Confidential Information of the Disclosing Party survive for a period of five years from the
termination of this Agreement. 

  

	7.	RESULTS AND INTELLECTUAL PROPERTY RIGHTS 

  

	7.1	Nothing in this Agreement shall affect the ownership by either party of any inventions, improvements, developments, discoveries, processes, methods, scientific knowledge, know-how
and/or other technical information discovered, created or conceived by that party (or any of its Affiliates) or to which that party (or any of its Affiliates) has the necessary rights on or prior to the Effective Date. For the avoidance of doubt,
any inventions, improvements, developments, discoveries, processes, methods, scientific knowledge, know-how and other technical information conceived by either party (or any of its Affiliates) outside of any work conducted pursuant to a Project
under this Agreement and without using the Confidential Information of the other party (or any of its Affiliates) provided under this Agreement shall be owned by the party (or its Affiliate) which discovers, creates or conceives it.

  

 14 

	7.2	Covion acknowledges that CDT Group Companies will receive organic semiconductors from third parties for testing and development of Devices but CDT shall undertake to ensure that
such organic semiconductors are only available to those staff of any CDT Group Company who are working on the testing and development of Devices and are not made available to those staff of the Relevant CDT Group Company working on any Project or to
those staff of any CDT Group Company who have had access to any Confidential Information of Covion disclosed pursuant to this Agreement so as to ensure that CDT can ensure that each CDT Group Company complies with the provisions of the remainder of
this Clause 7. 

  

	7.3	All Results shall, irrespective of whether they were discovered, created or conceived solely by either party or jointly by both parties, be solely owned by Covion and each party
will provide or do at Covion’s expense all things, including the execution of all papers by its personnel and the executing of assignments where necessary, in order to ensure that all Intellectual Property Rights in the Results are vested in
Covion. 

  

	7.4	Covion shall have the right to file patent applications in its own name for any invention contained in the Results and to be registered as sole proprietor of all patents resulting
therefrom. Covion shall bear the costs relating to the obtaining and maintaining of any such patents itself. For the avoidance of doubt Covion shall also have the right to obtain any other registered Intellectual Property Rights in its own name for
any invention contained in the Results and to be registered as sole proprietor thereof, Covion shall bear the costs relating to the obtaining and maintaining of any other registered Intellectual Property Rights. 

  

	7.5	Where any invention contained in the Results is technically capable of being patented and has as an inventor a person whose salary was actually paid by CDT at the time of such
invention, then Covion shall be obliged to file a patent application in respect of such invention promptly and judiciously in accordance with good industrial and scientific practice. Covion shall be obliged to file such patent applications in at
least the USA, Japan, Germany and the UK. However if the invention is a patentable process for the manufacture of an organic semiconductor Covion shall be entitled to decide to keep such invention secret rather than patent it but shall for the
purposes of the Patent and Know-How Licence and this Agreement be treated as if such invention had been patented in the USA, Japan, Germany and the UK (Covion shall promptly notify CDT in writing of any decision in this regard). In deciding whether
to patent an invention contained in the Results, in obtaining and maintaining such patent and/or in deciding whether or not to commercialise Covion Products using any such invention Covion shall act equitably towards CDT and in accordance with good
industrial and scientific practice. 

  

 15 

	7.6	If any dispute arises between the parties as to whether any invention referred to in Clause 7.5 is technically capable of being patented shall be referred initially to the patent
attorneys of CDT and Covion for consideration. Failing resolution within 21 days of such referral, the dispute shall be referred for final settlement to an expert nominated jointly by the parties (or failing such nomination within 14 days after a
party’s request thereof) nominated at the request of any party by the President of the Chartered Institute of Patent Agents. Such expert shall be deemed to act as an expert and not as an arbitrator, his decision shall (in the absence of
clerical or manifest error) be formal and binding on the parties and his fees shall be borne equally by the parties unless he determines that the conduct of either party is such that such party should bear all or a higher share of the fees.

  

	7.7	Covion hereby grants to CDT a royalty-free, sole, irrevocable, fully transferable, world-wide licence (with the right to sub-license others) under any claims that relate to or
concern the design, development or fabrication of Devices arising out of the patents filed pursuant to Clause 7.5, such licence to allow CDT to exploit in any manner such Device claims. However such licence shall be limited in that wherever Covion
is obliged by its material evaluation agreements with unconnected third parties to grant rights to third parties in relation to such Device claims, CDT’s licence shall either be non-exclusive or no licence shall be granted (as the case may be)
so as to be compatible with Covion’s obligations to those third parties. Covion shall on a timely basis notify CDT of the existence of any such agreements in relation to any particular Project. For the avoidance of doubt the claims to Devices
referred to in this Clause 7.7 shall not include any claim where such claim (as finally granted) is to an already known (at the date the relevant Patent application is filed) Device comprising a new organic semiconductor or new formulation
containing an organic semiconductor (i.e. where the only inventive part of the claim is the presence of the new organic semiconductor or new formulation containing an organic semiconductor). 

  

	7.8	If Covion assigns or otherwise transfers or disposes of any interest in any Intellectual Property Rights comprised in or relating to any Results to any third party Covion shall, as
a condition of such assignment, transfer or disposal, procure that such third party is bound by the provisions of this Clause 7 as if it is Covion. 

  

	8.	USE OF RESULTS 

  
 Covion shall be exclusively responsible for all Covion Products manufactured sold, used or supplied by Covion or any Covion Licensee and accordingly Covion shall indemnify and keep indemnified the Relevant CDT Group
Company in respect of all costs damages and expenses incurred as a result of any claims by third parties in tort or howsoever otherwise including, without limitation, any relevant legislation or regulation against the Relevant CDT Group Company
arising in any way out of the use of any of the Results as contemplated by or for Covion or by or for any Covion Licensee. 
  

 16 

	9.	MATERIALS EVALUATION AGREEMENT 

  

	9.1	The Relevant CDT Group Company shall Procure that the organic semiconductors arising out of or developed pursuant to any project shall not be provided to any staff of any CDT Group
Company (other than those working on projects pursuant to this Agreement) without the prior written consent of Covion. 

  

	9.2	Covion hereby undertakes at CDT’s request that it will make available to Limited’s staff involved in the development of Devices, free of charge, limited quantities (up to
a maximum of 5g per organic semiconductor) of all organic semiconductors which have been sampled by Covion to other external customers for evaluation in Devices provided CDT Limited has entered into the Materials Evaluation Agreement.

  

	9.3	In respect of organic semiconductors developed by the Relevant CDT Group Company’s staff working on a Project, any such organic semiconductor which it is agreed should be
provided to CDT Limited’s staff involved in the development of Devices in a meeting (including, without limitation, a video-conference or teleconference meeting) between the CDT Project Manager and the Covion Project Manager (as evidenced by
agreed minutes) shall be made available by Covion, free of charge; in limited quantities (up to a maximum of 5g per organic semiconductor) provided CDT Limited has entered into the Materials Evaluation Agreement. The Covion Project Manager shall not
unreasonably withhold or delay his consent to the release of such samples to CDT Limited’s staff involved in the development of Devices. 

  

	9.4	It is the intention of the parties in due course to discuss and seek to agree on a case-by-case basis the provision (and the terms of such provision) of larger quantities of organic
semiconductors (for which CDT acknowledges on behalf of CDT Limited that Covion would require payment) to CDT Limited for the purposes of general Devices research. It is also the intention of the parties to discuss and seek to agree separate
agreements to enable CDT Limited to include the provision of Covion organic semiconductors as part of their paid customer research licences and “technology packages”. It is also the intention of the parties to discuss and seek to agree on
a case-by-case basis supply agreements for Covion’s commercially available organic semiconductor products. 

  

	9.5	Any confidential information of Covion provided to CDT Limited’s staff involved in the development of Devices along with or after the samples of organic semiconductors referred
to in Clause 9.2 have been provided shall be governed by the provisions of the Materials Evaluation Agreement. Any confidential 

  

 17 

 information of CDT Limited provided pursuant to the collaboration under the Materials Evaluation
Agreement will be governed by the provisions of the Materials Evaluation Agreement. Any Intellectual Property Rights arising out of the collaboration between the staff of CDT Limited involved in the development of Devices and Covion pursuant to the
Materials Evaluation Agreement shall be governed by the Agreement Provisions of the Materials Evaluation Agreement. 
  

	10.	HEALTH AND SAFETY 

  

	10.1	In any case where employees of either party (or any of its Affiliates) visit the premises of the other party (or any of its Affiliates) for the purposes of this Agreement, the first
mentioned party shall: 

  

	 	10.1.1	procure that each such employee complies with all policies, procedures, regulations and rules of the other, party including, without limitation, those applicable to any premises of
the other party to which such employee may have access; and 

  

	 	10.1.2	indemnify the other party against all liabilities, costs, damages and expenses to the extent that the same are caused by any negligent act or omission by any such employee at the
other party’s premises. 

  

	10.2	Whilst carrying out any Project each party (and each of its Affiliates) shall observe and comply with all applicable requirements of the Health and Safety at Work etc. Act 1974 and
any relevant regulations and codes of practice issued thereunder and with all other applicable legal or regulatory requirements. 

  

	11.	TERM AND TERMINATION 

  

	11.1	This Agreement shall come into effect on the Effective Date and, unless terminated earlier in accordance with the following provisions of this clause, shall remain in force for a
period of five years from that date. The Parties shall meet at least six months prior to the expiry of the term of this Agreement to discuss the potential of any future agreement between the parties in relation to the research and development of
organic semiconductors. 

  

	11.2	In the event that either party is in material breach of the terms of this Agreement and, in the case of a breach capable of being remedied, fails to remedy that breach within thirty
days of receiving written notice specifying that breach and requiring the same to be remedied, the other party may terminate this Agreement forthwith by notice in writing. 

  

 18 

	11.3	In the event that: 

  

	 	11.3.1	either party has a liquidator, receiver, administrator or administrative receiver appointed in respect of the whole or any material part of its undertaking or assets or enters into
any arrangement or composition with its creditors or calls a meeting of its creditors or is the subject of an order made or resolution passed for its winding up, whether voluntarily or compulsorily (except for the purposes of a bona fide
reconstruction or amalgamation) or has an event analogous to any of those referred to above happen to it under the laws of any jurisdiction in which it is constituted or registered; and 

  

	 	11.3.2	where such party is Covion whilst such an event referred to in Clause 11.3.1 is continuing (but not after it ceases), Covion fails to pay within fourteen days of demand any sum due
and payable under this Agreement, 

  
 then the
other party may terminate this Agreement forthwith by notice in writing. 
  

	12.	CONSEQUENCES OF TERMINATION 

  

	12.1	Termination of this Agreement shall be without prejudice to the rights of either party which have accrued up to the date of termination and to pursue any remedy in respect of any
breach by the other party of any of the terms of this Agreement including, without limitation, the rights of CDT to sue for and recover any royalties or other payments then due. 

  

	12.2	Upon termination, the Relevant CDT Group Company’s staff shall forthwith cease any activity on any Project, Covion shall lose rights of access to the Device Facilities and the
Relevant CDT Group Company shall hand over to Covion all records of work on the Project, including laboratory notebooks. 

  

	12.3	The provisions of Clauses 4 and 5 of this Agreement relating to the payment of royalties and other sums and the rendering and auditing of accounts and other information shall remain
in force as long as may be necessary in order to wind up the outstanding obligations of both parties hereunder. 

  

	12.4	Upon the termination of this Agreement for any reason the provisions of Clauses 1, 4 and 5 (as provided for in Clause 12.3 above), 6, 7, 9.5, 12, 13 and 16 shall continue in force
in accordance with their respective terms. 

  

	13.	NATURE OF AGREEMENT 

  

	13.1	Each Party acknowledges that in entering into this Agreement it places no reliance on any representation or warranty relating to the subject matter of this Agreement

  

 19 

 save as expressly set out in this Agreement. This Agreement represents the entire agreement between the
parties in relation to the subject matter of this Agreement and supersedes any previous agreement or undertaking between the parties and may not be modified except by an instrument in writing and signed by duly authorised representatives of both
parties. 
  

	13.2	Should any provision of this Agreement, be held to be illegal, invalid or unenforceable in any respect by any judicial or other competent authority under the law of any
jurisdiction: 

  

	 	13.2.1	such provision shall, so far as it is illegal, invalid or unenforceable in any jurisdiction, be given no effect by the parties and shall be deemed not to be included in this
Agreement in that jurisdiction; 

  

	 	13.2.2	the other provisions of this Agreement shall be binding on the parties in that jurisdiction as if such provision were not included herein; 

  

	 	13.2.3	the legality, validity and enforceability of the provision in any other jurisdiction shall not be affected or impaired; and 

  

	 	13.2.4	the parties agree to negotiate in good faith to amend such provision to the extent possible for incorporation herein in such reasonable manner as most closely achieves the intention
of the parties without impairing the parties’ original interests and without rendering such provision invalid or unenforceable. 

  

	13.3	No delay or omission on the part of any party to this Agreement in exercising any right, power or remedy provided by law or under this Agreement shall impair such right, power or
remedy; or operate as a waiver thereof. 

  

	13.4	The single or partial exercise of any right, power or remedy provided by law or under this Agreement shall not preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. 

  

	13.5	The rights, powers and remedies provided in this Agreement are cumulative and not exclusive of any rights, powers and remedies provided by law. 

  

	13.6	Nothing in this Agreement shall be construed so as to constitute either party to be the agent of the other. 

  

	13.7	Nothing in this Agreement and no action taken by the parties pursuant to this Agreement shall constitute a Partnership or joint venture of any kind between the parties hereto.

  

 20 

	13.8	This Agreement shall be binding on the successors and permitted assigns of the parties. 

  

	13.9	Unless expressly provided in this Agreement no term of this Agreement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any persons who is not a party
to it. 

  

	13.10	The parties shall make all reasonable endeavours to reach an amicable settlement of any dispute, controversy or difference that may arise between the parties out of or in relation
to this Agreement save as provided in Clause 7.6. In the event of any dispute, controversy or difference that may arise the parties shall in the first instance promptly refer the matter to the parties’ senior business managers. Should the
senior business managers be unable to resolve the dispute within 30 days of the matter being referred to them then the parties shall then promptly refer the matter to a director of each of the parties. Should the directors be unable to resolve the
dispute within 30 days of the matter being referred to them then the matter shall be finally settled, without right of appeal, in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by an arbitrator or
arbitrators appointed in accordance with said Rules. Such arbitration shall take place in London, England. The provisions of this clause shall not prejudice the application of Clause 11 and shall also not apply to any breach of clauses 6
(Confidentiality) or 7 (Results and Intellectual Property Rights) which, save as provided in Clause 7.6, shall be subject to the non-exclusive jurisdiction of the English courts and for these purposes Covion appoints Avecia Limited as its agent to
accept service and CDT appoints CDT Limited as its agent to accept service. 

  

	13.11	Each party will at all times act in the utmost good faith towards the other in connection with this Agreement and the matters referred to therein. 

  

	13.12	Neither party shall make any announcement with respect to the arrangements contemplated by this Agreement without the written consent of the other as to the form content, and timing
of the announcement (such consent not be unreasonably withheld or delayed). 

  

	13.13	CDT is duly organized, validly existing and in good standing under the laws of Bermuda. This Agreement has been duly executed and delivered by CDT and all obligations of CDT therein
are legal, valid and binding obligations which are enforceable against CDT in accordance with their terms. CDT shall be entitled to perform any of the obligations undertaken by it and to exercise any rights granted to it under this Agreement through
any CDT Group Company. CDT shall ensure and guarantee to Covion that the Relevant CDT Group Company will comply with all obligations in this Agreement as if the Relevant CDT Group Company were party to this Agreement. Any act or omission of the
Relevant CDT Group Company shall be deemed to be the act or omission of CDT pursuant to this Agreement. 

  

 21 

	14.	ASSIGNMENT 

  

	14.1	A party may not assign or transfer all or any part of its rights or obligations under this Agreement without the prior written consent of the other party (such consent not to be
unreasonably withheld or delayed) save that both the benefit and the burden of all its Provisions may be transferred on notice to the other party to the following: 

  

	 	14.1.1	any company which is a subsidiary, fellow subsidiary or holding company of the Party concerned (each a “Qualifying Company”) but, by accepting such a transfer and
as a condition thereof, the transferee shall be deemed to agree with the parties to this Agreement to re-transfer both the benefit and the burden of all its provisions to the party concerned or another of its Qualifying Companies before itself
ceasing to be a Qualifying Company in relation to such Party; or 

  

	 	14.1.2	a purchaser of all or substantially all of the assets of the business to which this Agreement relates, and the parties shall execute such documents as may be appropriate to effect
such assignments. 

  

	14.2	Save as provided by clause 14.1.1, change of control of either party shall have no effect on this Agreement. 

  

	15.	NOTICES 

  

	15.1	All notices and other communications given or made in relation to this Agreement: 

  

	 	15.1.1	shall be in English and in writing, 

  

	 	15.1.2	shall be delivered by hand or sent by express courier (e.g. DHL) or by facsimile; 

  

	 	15.1.3	shall be delivered or sent to the party concerned at the relevant address or facsimile number, shown in clause 15.2 subject to such amendments as may be notified from time to time
in accordance with this clause by the relevant party to the other party by no less than 3 Business Days’ notice; and 

  

 22 

	 	15.1.4	shall be deemed to have been duly given or made if addressed in the aforesaid manner: 

  

	 	(i)	if delivered by hand, upon delivery; 

  

	 	(ii)	if posted by express courier, on the date of receipt; and 

  

	 	(iii)	if sent by facsimile, when a complete and legible copy of the communication has been received at the appropriate address; provided that if any notice or other communication would
otherwise become effective on a non-Business Day or after 5.00 p.m. on a Business Day, it shall instead be deemed to be given or made at 10.00 a.m. on the next Business Day. 

  

	15.2	The initial details for the purposes of clause 15.1 are: 

  

			
	 Covion:
	    	 Covion Organic Semiconductors GmbH
 Industriepark
Hoechst
 Gebaude G864
 D-65926 Frankfurt am Main
 Germany
 Facsimile No.: +49 69 3054 7570
 For the attention of: Managing Director

		
	 With a copy to:
	    	 Avecia Limited
 Legal Affairs Department
 PO Box No. 42, Hexagon House
 Blackley, Manchester
 M9 8ZS
 England
 Facsimile No.: +44 161 721 1886
 For the attention of: Company Secretary

		
	 CDT:
	    	 CDT International Limited
 PO Box HM1556, Comer House
Church
 Parliament Street, Hamilton HMFX
 Bermuda
 Facsimile No.: + 441 292 0961
 For the attention of: James
Whatlington

  

 23 

			
	With a copy to:	  	 Cambridge Display Technology Limited
 Greenwich House,
Madingley Rise
 Madingley Road, Cambridge
 CB3 3 0HJ

England
 Facsimile No.: +44 1223 723503
 For the attention of: Dr D Fyfe

  

	15.3	For the purposes of this clause 15, “Business Day” shall mean any day other than a Saturday, Sunday or Bank or Public Holiday in the United Kingdom or Germany.

  

	16.	GOVERNING LAW AND JURISDICTION 

  
 The construction, validity and performance of this Agreement shall be governed by the laws of England. 
  

	17.	COUNTERPARTS 

  
 This Agreement may be entered into in any number of counterparts and by the parties to it on separate counterparts each of which when executed and delivered shall be an original but all these counterparts shall
together constitute one and the same instrument. 
  

 24 

 IN WITNESS whereof the parties have executed this Agreement on the date first above written. 
  

			
	 Signed for and on behalf of

	 CDT INTERNATIONAL LIMITED

		
	 (Signature)
	 	 /s/ David Fyfe

		
	 (Name)
	 	 David Fyfe

		
	 (Position)
	 	 CEO

		
	 (Date)
	 	 14 December 2001

  

			
	 Signed for and on behalf of

	COVION ORGANIC SEMICONDUCTORS GMBH
		
	 (Signature)
	 	 /s/ Hermann Schenk

		
	 (Name)
	 	 Hermann Schenk

		
	 (Position)
	 	 GESCHÄFTSÜHRER

		
	 (Date)
	 	 14/12/01

  

 25

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