Document:

exv4w2

 

Exhibit 4.2

LIMITED LIABILITY COMPANY AGREEMENT

OF

DEUTSCHE BANK CONTINGENT CAPITAL LLC II

     This Limited Liability Company Agreement (this “Agreement”) of Deutsche Bank Contingent
Capital LLC II is entered into by Deutsche Bank Aktiengesellschaft, a Federal Republic of Germany
corporation (the “Member”).

     The Member, by execution of this Agreement, hereby forms a limited liability company pursuant
to and in accordance with the Delaware Limited Liability Company Act (6 Del.C. §18-101,
et seq.), as amended from time to time (the “Act”), and hereby agrees as follows:

     1. Name. The name of the limited liability company formed hereby is Deutsche Bank
Contingent Capital LLC II (the “Company”).

     2. Certificates. James G. Leyden, Jr., as an authorized person within the meaning of
the Act, shall execute, deliver and file the Certificate of Formation with the Secretary of State
of the State of Delaware. Upon the filing of the Certificate of Formation with the Secretary of
State of the State of Delaware, his powers as an authorized person shall cease and the Member shall
thereafter be designated as an authorized person within the meaning of the Act. The Member or an
Officer (as defined herein) shall execute, deliver and file any other certificates (and any
amendments and/or restatements thereof) necessary for the Company to qualify to do business in a
jurisdiction in which the Company may wish to conduct business.

     3. Purpose. The Company is formed for the object and purpose of, and the nature of
the business to be conducted and promoted by the Company is, engaging in any lawful act or activity
for which limited liability companies may be formed under the Act.

     4. Powers. In furtherance of its purposes, but subject to all of the provisions of
this Agreement, the Company shall have the power and is hereby authorized to:

          a. acquire by purchase, lease, contribution of property or otherwise, own, hold, sell, convey,
transfer or dispose of any real or personal property which may be necessary, convenient or
incidental to the accomplishment of the purpose of the Company;

          b. act as a trustee, executor, nominee, bailee, director, officer, agent or in some other
fiduciary capacity for any person or entity and to exercise all of the powers, duties, rights and
responsibilities associated therewith;

          c. take any and all actions necessary, convenient or appropriate as trustee, executor,
nominee, bailee, director, officer, agent or other fiduciary, including the

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granting or approval of waivers, consents or amendments of rights or powers relating thereto
and the execution of appropriate documents to evidence such waivers, consents or amendments;

          d. operate, purchase, maintain, finance, improve, own, sell, convey, assign, mortgage, lease
or demolish or otherwise dispose of any real or personal property which may be necessary,
convenient or incidental to the accomplishment of the purposes of the Company;

          e. borrow money and issue evidences of indebtedness in furtherance of any or all of the
purposes of the Company, and secure the same by mortgage, pledge or other lien on the assets of the
Company;

          f. invest any funds of the Company pending distribution or payment of the same pursuant to the
provisions of this Agreement;

          g. prepay in whole or in part, refinance, recast, increase, modify or extend any indebtedness
of the Company and, in connection therewith, execute any extensions, renewals or modifications of
any mortgage or security agreement securing such indebtedness;

          h. enter into, perform and carry out contracts of any kind, including, without limitation,
contracts with any person or entity affiliated with the Member, necessary to, in connection with,
convenient to, or incidental to the accomplishment of the purposes of the Company;

          i. employ or otherwise engage employees, managers, contractors, advisors, attorneys and
consultants and pay reasonable compensation for such services;

          j. enter into partnerships, limited liability companies, trusts, associations, corporations or
other ventures with other persons or entities in furtherance of the purposes of the Company; and

          k. do such other things and engage in such other activities related to the foregoing as may be
necessary, convenient or incidental to the conduct of the business of the Company, and have and
exercise all of the powers and rights conferred upon limited liability companies formed pursuant to
the Act.

     5. Principal Business Office. The principal business office of the Company shall be
located at such location as may hereafter be determined by the Member.

     6. Registered Office. The address of the registered office of the Company in the
State of Delaware is c/o The Corporation Trust Company, 1209 Orange Street, Corporation Trust
Center, Wilmington, New Castle County, Delaware 19801.

     7. Registered Agent. The name and address of the registered agent of the Company for
service of process on the Company in the State of Delaware is The Corporation

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Trust Company, 1209 Orange Street, Corporation Trust Center, Wilmington, New Castle County,
Delaware 19801.

     8. Members. The name and the mailing address of the Member is set forth in the
records of the Company.

     9. Limited Liability. Except as otherwise provided by the Act, the debts, obligations
and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the
debts, obligations and liabilities of the Company, and the Member shall not be obligated personally
for any such debt, obligation or liability of the Company solely by reason of being a member of the
Company.

     10. Capital Contributions. The Member is deemed admitted as the Member of the Company
upon its execution and delivery of this Agreement. The Member will contribute $100 to the Company.

     11. Additional Contributions. The Member is not required to make any additional
capital contribution to the Company. However, a Member may make additional capital contributions
to the Company with the written consent of the Member.

     12. Allocation of Profits and Losses. The Company’s profits and losses shall be
allocated to the Member.

     13. Distributions. Distributions shall be made to the Member at the times and in the
aggregate amounts determined by the Member. Notwithstanding any provision to the contrary
contained in this Agreement, the Company shall not make a distribution to any Member on account of
its interest in the Company if such distribution would violate Section 18-607 of the Act or other
applicable law.

     14. Management. In accordance with Section 18-402 of the Act, management of the
Company shall be vested in the Member. The Member shall have the power to do any and all acts
necessary, convenient or incidental to or for the furtherance of the purposes described herein,
including all powers, statutory or otherwise, possessed by members of a limited liability company
under the laws of the State of Delaware. The Member has the authority to bind the Company.

     15. Officers. The Member may, from time to time as it deems advisable, appoint
officers of the Company (the “Officers”) and assign in writing titles (including, without
limitation, President, Vice President, Secretary, and Treasurer) to any such person. Unless the
Member decides otherwise, if the title is one commonly used for officers of a business corporation
formed under the Delaware General Corporation Law, the assignment of such title shall constitute
the delegation to such person of the authorities and duties that are normally associated with that
office. Any delegation pursuant to this Section 15 may be revoked at any time by the Member.

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     16. Other Business. The Member may engage in or possess an interest in other business
ventures (unconnected with the Company) of every kind and description, independently or with
others. The Company shall not have any rights in or to such independent ventures or the income or
profits therefrom by virtue of this Agreement.

     17. Exculpation and Indemnification. No Member or Officer shall be liable to the
Company, or any other person or entity who has an interest in the Company, for any loss, damage or
claim incurred by reason of any act or omission performed or omitted by such Member or Officer in
good faith on behalf of the Company and in a manner reasonably believed to be within the scope of
the authority conferred on such Member or Officer by this Agreement, except that a Member or
Officer shall be liable for any such loss, damage or claim incurred by reason of such Member’s or
Officer’s willful misconduct. To the fullest extent permitted by applicable law, a Member or
Officer shall be entitled to indemnification from the Company for any loss, damage or claim
incurred by such Member or Officer by reason of any act or omission performed or omitted by such
Member or Officer in good faith on behalf of the Company and in a manner reasonably believed to be
within the scope of the authority conferred on such Member or Officer by this Agreement, except
that no Member or Officer shall be entitled to be indemnified in respect of any loss, damage or
claim incurred by such Member or Officer by reason of willful misconduct with respect to such acts
or omissions; provided, however, that any indemnity under this Section 17 shall be
provided out of and to the extent of Company assets only, and no Member shall have personal
liability on account thereof.

     18. Assignments. A Member may assign in whole or in part its limited liability
company interest with the written consent of the Member. If a Member transfers all of its interest
in the Company pursuant to this Section, the transferee shall be admitted to the Company upon its
execution of an instrument signifying its agreement to be bound by the terms and conditions of this
Agreement. Such admission shall be deemed effective immediately prior to the transfer, and,
immediately following such admission, the transferor Member shall cease to be a member of the
Company.

     19. Resignation. A Member may resign from the Company with the written consent of the
Member. If a Member is permitted to resign pursuant to this Section, an additional member shall be
admitted to the Company, subject to Section 20, upon its execution of an instrument signifying its
agreement to be bound by the terms and conditions of this Agreement. Such admission shall be
deemed effective immediately prior to the resignation, and, immediately following such admission,
the resigning Member shall cease to be a member of the Company.

     20. Admission of Additional Members. One (1) or more additional members of the
Company may be admitted to the Company with the written consent of the Member.

     21. Dissolution.

          a. The Company shall dissolve, and its affairs shall be wound up upon the first to occur of
the following: (i) the written consent of the Member, (ii) the

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retirement, resignation or dissolution of the Member or the occurrence of any other event
which terminates the continued membership of the Member in the Company unless the business of the
Company is continued in a manner permitted by the Act, or (iii) the entry of a decree of judicial
dissolution under Section 18-802 of the Act.

          b. The bankruptcy of the Member will not cause the Member to cease to be a member of the
Company and upon the occurrence of such an event, the business of the Company shall continue
without dissolution.

          c. In the event of dissolution, the Company shall conduct only such activities as are
necessary to wind up its affairs (including the sale of the assets of the Company in an orderly
manner), and the assets of the Company shall be applied in the manner, and in the order of
priority, set forth in Section 18-804 of the Act.

     22. Separability of Provisions. Each provision of this Agreement shall be considered
separable and if for any reason any provision or provisions herein are determined to be invalid,
unenforceable or illegal under any existing or future law, such invalidity, unenforceability or
illegality shall not impair the operation of or affect those portions of this Agreement which are
valid, enforceable and legal.

     23. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original of this Agreement.

     24. Entire Agreement. This Agreement constitutes the entire agreement of the Member
with respect to the subject matter hereof.

     25. Governing Law. This Agreement shall be governed by, and construed under, the laws
of the State of Delaware (without regard to conflict of laws principles), all rights and remedies
being governed by said laws.

     26. Amendments. This Agreement may not be modified, altered, supplemented or amended
except pursuant to a written agreement executed and delivered by the Member.

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     IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed
this Agreement as of the 10th day of May, 2007. Pursuant to Section 18-201(d) of the Act, this
Agreement shall be effective as of May 10, 2007.

	 	 	 	 	 
	 	DEUTSCHE BANK AKTIENGESELLSCHAFT

 	 
	 	By:  	/s/ Joachim Bartsch
 	 
	 	 	Name:  	Joachim Bartsch 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Marco Zimmermann
 	 
	 	 	Name:  	Marco Zimmermann 	 
	 	 	Title:  	Vice President 	 
	 

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Exhibit 10.18

ARROYO SCIENCES

NONEXCLUSIVE

SOFTWARE LICENSE AGREEMENT

This is a license agreement and not an agreement for sale. This license agreement (Agreement) is
between Arroyo Sciences, Inc. a Delaware corporation, located at 2400 Lincoln Avenue, Altadena, CA
91001 (hereinafter called “LICENSEE”) and the California Institute of Technology, a not-for-profit
California corporation, located at 1200 E. California Blvd., Pasadena, CA 91125
(“CALTECH” or “LICENSOR”), and gives LICENSEE certain limited rights to use the proprietary
Software and its
Related Materials. All rights not specifically granted in this Agreement are reserved to CALTECH.

ARTICLE 1

CONFIDENTIALITY

1.1 Except as expressly provided herein, each party agrees not to disclose any terms of this
Agreement to any third party without the consent of the other party; provided, however, that
disclosures may be made as required by securities laws or other applicable laws, or to actual or
prospective investors or corporate partners, or to a party’s accountants, attorneys, and other
professional advisors.

ARTICLE 2

COPYRIGHT

2.1 The Software and/or Related Materials are owned by CALTECH and are protected by, inter
alia, United States copyright laws and applicable international treaties and/or conventions
(“Copyright
Rights”). The United States Government may have prior rights to use some or all of the Software
and/or Related Materials.

2.2 LICENSEE will mark, in at least one conspicuous location, a notice that the Software and
Related Materials are owned by CALTECH. All marking should include:

©(DATE] California Institute of Technology, Pasadena, California. ALL RIGHTS RESERVED. Based on
Government Sponsored Research NAS7-1407.

ARTICLE 3

OMITTED

ARTICLE 4

DEFINITIONS

As used herein, the following words, phrases, or terms in this Agreement shall have the following
meanings:

4.1 “Executable Code” means machine-readable code compiled by a high-level compiler.

4.2 “Source Code” means code written in human-readable format or in a high-level program
language.

 

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4.3 “Software” means the Copyright Rights to the suite of programs, scripts, manuals, and
procedures received from CALTECH, whether in the form of Executable Code, Source Code, or
otherwise, for the purpose of enabling (i) U’-Hunter (as disclosed, inter alia, in NPO
20808-CP, VHUNTER: NEW FRACTAL ENCODING FOR BURIED UNEXPLODED ORDNANCE
DETECTION USING ELECTROMAGNETIC AND MAGNETIC GEOPHYSICAL SENSORS); and (ii) MUDSS (as disclosed,
inter alia, in NPO 40484, MOBILE UNDERWATER DEBRIS SURVEY SYSTEM), and any updates and new releases
available during this license, inclusive of backups, updates, or merged copies permitted hereunder
or subsequently supplied by CALTECH, including file structures, programming instructions, user
interfaces and screen formats and sequences, as well as any related proprietary information,
know-how, procedures, methods, prototypes, designs, technical data and reports, whether protected
by patents, if any, or otherwise.

4.4 “Related Materials” means all of the printed materials, user documentation, training
documentation and confidential software activation code necessary for the operation of Software
supplied by CALTECH under this Agreement.

4.5 “Licensed Product” means any product, device, subassembly, or assembly which comprises,
incorporates, is made by, or uses the Software or Related Materials.

4.6 “Sublicensee” shall mean, with respect to a particular Licensed Product, a third party to whom
LICENSEE has granted a license or sublicense under the License Agreement to research, develop,
distribute, have distributed, make, have made, import, have imported, use, have used, sell, have
sold, offer for sale, have offered for sale, or otherwise exploit such Licensed Product.

4.7 “Effective Date” shall mean the date CALTECH signs this Agreement if CALTECH signs it last, or
on the date of receipt of Software and Related Materials by LICENSEE as determined by CALTECH
whichever occurs last.

4.8 “Net Revenue” shall mean gross revenue from the direct or indirect use of the Software or
Related Materials including, but not limited to, any sale, license, sublicense, lease, service,
maintenance, upgrade or support activities, or distribution minus Deductible Expenses.

4.9 “Deductible Expenses” means the following items incurred in connection with sales of Licensed
Products to the extent paid or allowed by LICENSEE and included in accordance with recognized
principles of accounting in the gross sales price billed: (i) sales, use or turnover taxes; (ii)
excise value added or other taxes, custom duties or consular fees; (iii) transportation, freight,
and handling charges, and insurance on shipments to customers; (iv) trade, cash or quantity
discounts or rebates to the extent actually granted; (v) agent fees or commissions; (vi) rebates,
refunds, and credits for any rejected or returned Software or because of retroactive price
reductions, rebates or chargebacks; and (vii) uncollected accounts receivable attributable to sales
of Software.

4.10 “Related Company” means any corporation, limited liability company or other legal entity
directly or indirectly controlled by LICENSEE or its successors or assigns, or any successor or
assign of such an entity. For the purpose of this Agreement, “control” shall mean the direct or
indirect ownership of at least fifty percent (50%) of the outstanding shares or other voting rights
of the subject entity to elect directors, or if not meeting the preceding, any entity owned or
controlled by or owning or controlling at the maximum control or ownership right permitted in the
country where such entity exists.

 

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ARTICLE 5

RESERVATION OF OWNERSIDP AND GRANT OF LICENSE

5.1 CALTECH hereby grants to LICENSEE a worldwide nonexclusive license, with the right to
sublicense, to Software to research, develop, distribute, have distributed, make, have made,
import, have imported, use, have used, sell, have sold, offer for sale, have offered for sale, and
otherwise exploit Licensed Products for all uses. CALTECH also hereby grants to LICENSEE a
worldwide nonexclusive license, with the right to sublicense, to Related Materials to research,
develop, distribute, have distributed, make, have made, import, have imported, use, have used,
sell, have sold, offer for sale, have offered for sale, and otherwise exploit Licensed Products for
all uses.

5.2 CALTECH retains exclusive ownership of any copyright rights to the Software and/or
Related Materials (as defined above), licensed under this Agreement and hereby grants to LICENSEE a
nonexclusive license (with the right to sublicense) to use the Software and/or Related Materials
throughout the world only pursuant to the terms and conditions of this Agreement.

5.3 LICENSEE agrees to grant CALTECH a fully paid-up, royalty-free nonexclusive license
for
educational and research purposes to any Derivative Works, as defined by U.S.C. 17 § 101, of Software that are owned in whole or in part by LICENSEE.

5.4 LICENSEE shall have the right to grant nonexclusive sublicenses hereunder, provided that:

(a) LICENSEE shall include all its sublicensing income in LICENSEE’s reports to CALTECH, as
provided in Paragraph 8.4, and LICENSEE shall pay royalties thereon to CALTECH pursuant
to Paragraph 8.3;

(b) LICENSEE shall furnish CALTECH within thirty (30) days of the
execution thereof, a true and complete copy of each sublicense and any changes or additions
thereto;

(c) LICENSEE may grant sublicenses of no greater scope than the licenses granted under
Paragraph 4. I; and

(d) Each sublicense granted by LICENSEE shall include provisions similar in all material
respects to those of Articles 2, 12, 14-24 and Paragraph 8.2.

ARTICLE 6

EQUITY

6.1 LICENSEE agrees to issue to CALTECH, in consideration of LICENSEE’s receipt of the
intangible property rights granted under this Agreement, an equity interest in LICENSEE equal to
twenty thousand (20,000) shares of common stock, pursuant to the terms of an agreed stock purchase
agreement.

6.2 CALTECH agrees that, in the event of any underwritten or public offering of securities of
LICENSEE or a related company, CALTECH shall comply with and agree to any reasonable restriction on
the transfer of equity interest, or any part thereof, imposed by an underwriter, and shall perform
all acts and sign all necessary documents required with respect thereto. The provisions of this
Paragraph 6.2 shall survive termination of this Agreement.

ARTICLE 7

USES NOT PERMITTED

7.1 LICENSEE may not remove or obscure any copyright, patent or trademark notices. The Software
and/or Related Materials shall not become subject to application for patent or copyright by
LICENSEE.

7.2 LICENSEE shall not assign this Agreement or LICENSEE’s rights hereunder without the prior
written consent of CALTECH except as provided in Paragraph 16.3. Any purported assignment without
such consent shall be null and void.

 

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ARTICLE 8

ROYALTIES

8.1 Beginning four (4) years from the Effective Date of this Agreement, LICENSEE, with its
Sublicensees, agrees to pay to CALTECH a minimum annual royalty often thousand dollars
($10,000.00) which will be paid continuously on each successive anniversary of the Effective Date
thereafter upon invoice by CALTECH. For the avoidance of doubt, payments made by LICENSEE under
Paragraphs 8.2 and 8.3 shall be credited against the minimum royalty.

8.2 LICENSEE agrees to pay to CALTECH two percent (2%) of Net Revenue from the sale of Licensed
Products. If Software is combined with other Software routines and sold as one package, then the
royalties paid to CALTECH shall be determined as though Software was sold separately and at arms
length. No royalty shall be payable to CALTECH with respect to any use of the Software and/or
Related Materials for sales of Licensed Products or Services to the United States Government or to
the State of California.

8.3 LICENSEE shall pay CALTECH: (a) twenty-five percent (25%) of the royalties or other
revenues (which include without limitation royalty payments for technical assistance and the like)
LICENSEE receives from Sublicensees other than Related Companies for the sale of Licensed Products
that are not substantially combined with non-CALTECH software and/or hardware; and (b) two percent
(2%) of all other royalties or other revenues (which include without limitation royalty payments
for technical assistance and the like) LICENSEE receives from Sublicensees other than Related
Companies for the sale of Licensed Products. Such royalties or other revenues specifically shall
not include payments made by a Sublicensee (i) in consideration of equity or debt securities of
LICENSEE; (ii) to support research or development activities to be undertaken by LICENSEE; (iii)
upon the achievement by LICENSEE or Sublicensee of specified milestones or benchmarks relating to
the development of Licensed Products; (iv) in connection with pilot studies; (v) with respect to
performance based milestones; (vi) in consideration for the license or sublicense of any
intellectual property other than CALTECH Technology; (vii) with respect to products other than
Licensed Products, or (viii) as reimbursement for patent or other expenses. Such royalties or other
revenues specifically shall not include payments made by a Sublicensee.

8.4 LICENSEE shall keep records and books of account in respect of all Licensed Products made and
sold by LICENSEE or Related Companies under this Agreement and of royalties or other revenues
LICENSEE receives from Sublicensees other than Related Companies for the sale of Licensed Products.
CALTECH shall have the right, during business hours, no more often than annually, to examine, or to
have its designated auditors examine, such records and books. LICENSEE shall keep the same for at
least three (3) years after it pays CALTECH the royalties due for such Licensed Products and
require Related Companies to do the same. CALTECH shall not disclose to any third party any
confidential information learned through an examination of such records and books, nor shall
CALTECH use any such information for any purpose other than determining and enforcing its rights
under this Agreement.

8.5 Following the first commercial sale of a Licensed Product, on or before the last day of each
February, May, August and November for so long as royalties are payable under this Agreement,
LICENSEE shall render to CALTECH a report in writing, setting forth Net Revenues and the number of
units of Licensed Products sold during the preceding calendar quarter by LICENSEE and Related
Companies, and the royalties or other revenues LICENSEE received from Sublicensees other than
Related Companies during the preceding calendar quarter for the sale of Licensed Products. Each
such report shall also set forth an explanation of the calculation of the royalties payable
hereunder and be accompanied by payment of the royalties shown by said report to be due CALTECH.
Notwithstanding the foregoing, if (i) CALTECH materially breaches
this Agreement, (ii) LICENSEE gives CALTECH written notice of the breach, and (iii) CALTECH
has not cured the breach by the time a payment is due under this Paragraph, then
LICENSEE may make the required payment into an interest bearing escrow account to be
released when the breach is cured, less any damages that may be payable to LICENSEE by
virtue of CALTECH’s breach.

 

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ARTICLE 9

DUE DILIGENCE

9.1 LICENSEE shall have discretion over the commercialization of Licensed Products. However,
LICENSEE agrees to use commercially reasonable efforts to introduce commercial Licensed Product(s)
in the United States as soon as practical, consistent with sound and reasonable business practices
and judgments. LICENSEE shall be deemed to have satisfied its obligations under this Paragraph if
LICENSEE has an ongoing and active research program or marketing program, as appropriate, directed
toward production and use of one or more Licensed Products. Any efforts of LICENSEE’s Sublicensees
shall be considered efforts of LICENSEE for the sole purpose of determining LICENSEE’s compliance
with its obligation under this Paragraph.

9.2 After the First Year from the Effective Date, CALTECH shall have the right, no more often than
twice each year, to require LICENSEE to report to CALTECH in writing on its progress in introducing
commercial Licensed Product(s) throughout the world.

ARTICLE 10

TERM

10.1 This Agreement shall commence on the Effective Date and shall automatically renew on an
annual basis except if terminated by mutual consent or by CALTECH under Paragraph 11.1.

ARTICLE 11

TERMINATION

11.1 CALTECH shall have the right to terminate this Agreement prior to the date it would
otherwise expire pursuant to this Paragraph 11.1 if LICENSEE fails to make any payment due
hereunder and LICENSEE continues to fail to make the payment, either to CALTECH directly or by
placing any disputed amount into an interest bearing escrow account to be released when the dispute
is resolved, for a period of sixty (60) days after receiving notice from CALTECH specifying
LICENSEE’s failure. Upon any such termination, (i) LICENSEE and Related Companies shall have six
(6) months to complete any pending licensing or sublicensing negotiations and/or to complete the
manufacture of any Licensed Products that then are work in progress and to sell their inventory of
Licensed Products,’ provided LICENSEE pays the applicable royalties in accordance with Paragraph
8.2 and (ii) CALTECH shall accept an assignment by LICENSEE of any sublicenses granted by LICENSEE
to entities other than Related Companies, and any sublicense so assigned shall remain in full force
and effect.

11.2 If either party materially breaches this Agreement, the other party may elect to
give the breaching party written notice describing the alleged breach. If the breaching
party has not cured such breach within sixty (60) days after receipt of such notice, the notifying
party will be entitled, in addition to any other rights it may have under this Agreement, to
terminate this Agreement effective immediately; provided, however, that if either party receives
notification from the other of a material breach and if the party alleged to be in default notifies
the other party in writing within thirty (30) days of receipt of such default notice that it
disputes the asserted default, the matter will be submitted to Arbitration as provided in Article
14 of this Agreement. In such event, the non-breaching party shall not have the right
to terminate this Agreement until it has been determined in such arbitration
proceeding that the other party materially breached this Agreement, and the breaching party fails
to cure such breach within ninety (90) days after the conclusion of such arbitration proceeding.

 

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11.3 Termination of this Agreement for any reason shall not release any party hereto from any
liability which, at the time of such termination, has already accrued to the other party or which
is attributable to a period prior to such termination, nor preclude either party from
pursuing any rights and remedies it may have hereunder or at law or in equity which accrued or are
based upon any event occurring prior to such termination.

11.4 Paragraph 11.2 and Articles 1, 14-26 of this Agreement shall survive termination of this
Agreement for any reason.

ARTICLE 12

AGENCY

12.1 CALTECH and LICENSEE are independent parties in this Agreement. Accordingly, there is no
agency, joint venture or partnership relationship between CALTECH and LICENSEE under this
Agreement.

ARTICLE 13

OMITTED

ARTICLE 14

PRODUCT LIABILITY

14.1 LICENSEE agrees that CALTECH shall have no liability to LICENSEE or to any purchasers
or users of Licensed Products made or sold by LICENSEE for any claims, demands, losses, costs, or
damages suffered by LICENSEE, or purchasers or users of such Licensed Products, or any other party,
which may result from personal injury, death, or property damage related to the manufacture, use,
or sale of such Licensed Products (“Claims”). LICENSEE agrees to defend, indemnify, and hold
harmless CALTECH, its trustees, officers, agents, and employees from any such Claims, provided that
(i) LICENSEE is notified promptly of any Claims, (ii) LICENSEE has the sole right to control and
defend or settle any litigation within the scope of this indemnity, and (iii) all indemnified
parties
cooperate to the extent necessary in the defense of any Claims.

14.2 At such time as LICENSEE begins to sell or distribute Licensed Products (other than for the
purpose of obtaining regulatory approvals), LICENSEE shall at its sole expense, procure and
maintain
policies of comprehensive general liability insurance in amounts not less than $1,000,000 per
incident
and $3,000,000 in annual aggregate and naming those indemnified under Paragraph 14.1 as additional
insureds. Such comprehensive general liability insurance shall provide (i) product liability
coverage and (ii) broad form contractual liability coverage for LICENSEE’s indemnification under
Paragraph
14.1. In the event the aforesaid product liability coverage does not provide for occurrence
liability, LICENSEE shall maintain such comprehensive general liability insurance for a reasonable
period of not less than five (5) years after it has ceased commercial distribution or use of any
Licensed Product.

14.3 LICENSEE shall provide CALTECH with written evidence of such insurance upon request of
CALTECH/JPL. LICENSEE shall provide CALTECH with notice at least fifteen (15) days prior to any
cancellation, non-renewal or material change in such insurance, to the extent LICENSEE receives
advance notice of such matters from its insurer. If LICENSEE does not obtain replacement insurance
providing comparable coverage within sixty (60) days following the date of such cancellation,
non-renewal or material change, CALTECH shall have the right to terminate this Agreement effective
at the end of such sixty (60) day period without any additional waiting period; provided that
if LICENSEE uses reasonable efforts but is unable to obtain the required insurance at
commercially
reasonable rates, CALTECH shall not have the right to terminate this Agreement, and
CALTECH instead shall cooperate with LICENSEE to either grant a waiver of LICENSEE’s
obligations under this Article or assist LICENSEE in identifying a carrier
to provide such insurance or in developing a program for self-insurance or other alterative
measures. This Article 14 shall survive the expiration or termination of this
Agreement.

 

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ARTICLE 15

DISCLAIMER OF SOFTWARE AND/OR RELATED MATERIALS

15.1 THE SOFTWARE IS EXPERIMENTAL IN NATURE AND IS BEING LICENSED “AS IS.” THE LICENSE
OF THE SOFTWARE DOES NOT INCLUDE ANY TECHNICAL SUPPORT. CALTECH MAKES NO WARRANTIES,
REPRESENTATION OR UNDERTAKING WITH RESPECT TO THE UTILITY, EFFICACY, SAFETY, OR
APPROPRIATENESS OF USING THE SOFTWARE. CALTECH REPRESENTS AND WARRANTS THAT IT HAS THE
RIGHT TO LICENSE THE SOFTWARE TO LICENSEE AND THAT SOFTWARE IS PROTECTED BY UNITED STATES
COPYRIGHT LAWS AND APPLICABLE INTERNATIONAL TREATIES AND/OR CONVENTIONS.

THE SOFTWARE AND/OR RELATED MATERIALS ARE PROVIDED “AS-IS” WITHOUT
WARRANTY OF ANY KIND INCLUDING ANY WARRANTIES OF PERFORMANCE OR
MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE (as set forth in UCC
3323212-2313) OR FOR ANY PURPOSE WHATSOEVER, FOR THE LICENSED PRODUCT,
HOWEVER USED.

IN NO EVENT SHALL CALTECH/JPL BE LIABLE FOR ANY DAMAGES AND/OR COSTS,
INCLUDING BUT NOT LIMITED TO INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER
CALTECH/JPL SHALL BE ADVISED, HAVE REASON TO KNOW, OR IN FACT SHALL KNOW OF THE
POSSIBILITY.
LICENSEE BEARS ALL RISK RELATING TO QUALITY AND PERFORMANCE OF THE
SOFTWARE AND/OR RELATED MATERIALS. CALTECH SHALL NOT BE LIABLE FOR ANY USE OF THE
SOFTWARE OR RELATED KNOWHOW, AND LICENSEE HEREBY AGREES TO DEFEND, INDEMNIFY AND HOLD CALTECH AND
ITS EMPLOYES HARMLESS FROM ANY LOSS, CLAIM, DAMAGE OR LIABILITY, OR
WHATEVER KIND OF NATURE, WHICH MAY ARISE FROM THE AGREEMENT, OR THE USE BY
LICENSEE OF THE SOFTWARE OR RELATED KNOW-HOW HEREUNDER.

ARTICLE 16

MISCELLANEOUS

16.1 LICENSEE agrees that it shall not use the name of CALTECH, or California Institute of
Technology, in any advertising or publicity material, or make any form of representation or
statement which would constitute an express or implied endorsement by CALTECH of any Licensed
Product, and that it shall not authorize others to do so, without first having obtained written
approval from CALTECH, except as may be required by governmental law, rule or regulation.

16.2 This Agreement sets forth the complete agreement of the parties concerning the subject matter
hereof. No claimed oral agreement in respect thereto shall be considered as any part hereof. No
waiver of or change in any of the terms hereof subsequent to the execution hereof claimed to
have been made by any representative of either party shall have any force or effect unless in
writing, signed by duly authorized representatives of the parties.

 

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16.3 This Agreement shall be binding upon and inure to the benefit of any successor or assignee of
CALTECH. This Agreement is not assignable by LICENSEE without the prior written consent of CALTECH,
except that LICENSEE may assign this Agreement without the prior written consent of CALTECH, to any
Related Company, or any successor of, or purchaser of a substantial part of the assets of, the
business to which this Agreement pertains. Any permitted assignee shall succeed to all of the
rights and obligations of LICENSEE under this Agreement.

16.4 Any notice or communication required or permitted to be given or made under this Agreement
shall be addressed as follows:

	 	 	 
	CALTECH/JPL:

	 	Office of Technology Transfer
	 

	 	California Institute of Technology
	 

	 	1200 East California Boulevard (MC 210-85)
	 

	 	Pasadena, CA 91125
	 

	 	Fax No.: (626) 356-2486
	 
	 	 
	LICENSEE:

	 	Arroyo Sciences, Inc.
	 

	 	Attn: CEO
	 

	 	2400 Lincoln Avenue
	 

	 	Altadena, CA 91001
	 

	 	Fax No.: (626) 296-6458

Either party may notify the other in writing of a change of address or fax number, in which event
any subsequent communication relative to this Agreement shall be sent to the last said notified
address or number, provided, however, that the parties shall deliver all material notices under
this Agreement by registered mail or overnight delivery service. All notices and communications
relating to this Agreement shall be deemed to have been given when received.

16.5 In the event that any provisions of this Agreement are determined to be invalid or
unenforceable by a court of competent jurisdiction, the remainder of the Agreement shall remain in
full force and effect without said provision. The parties shall in good faith negotiate a
substitute clause for any provision declared invalid or unenforceable, which shall most nearly
approximate the intent of the parties in entering this Agreement.

16.6 This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

16.7 The headings of the several Paragraphs are inserted for convenience of reference only and are
not intended to be a part of or to affect the meaning or interpretation of this Agreement.

16.8 Whenever provision is made in this Agreement for either party to secure the consent or
approval of the other, that consent or approval shall not unreasonably be withheld or delayed, and
whenever in this Agreement provisions are made for one party to object to or disapprove a matter,
such objection or disapproval shall not unreasonably be exercised.

 

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ARTICLE 17

FORCE MAJEURE

17.1 Neither party shall lose any rights hereunder or be liable to the other party for damages
or losses(except for payment obligations) on account of failure of performance by the defaulting
party if the failure is occasioned by war, strike, fire, Act of God, earthquake, flood,
lockout, embargo, governmental acts or orders or restrictions, failure of suppliers, or any other
reason where failure to perform is beyond the reasonable control and not caused by the negligence
or intentional conduct or misconduct of the nonperforming party, and such party has exerted all
reasonable efforts to avoid or remedy such force majeure; provided, however, that in no event shall
a party be required to settle any labor dispute or disturbance.

ARTICLE 18

EXPORT REGULATION

18.1 If at any time after LICENSEE has received the Software and/or Related Materials and has
reason to transfer the Software and/or Related Materials or Product incorporating the Software
and/or Related Materials to its subsidiary, associated or related company, either within or outside
of the United States, LICENSEE shall immediately notify CALTECH of such fact before executing the
delivery. When exporting CALTECH Software and/or Related Materials or Product incorporating such
Software to a foreign entity, LICENSEE shall comply with all federal export laws and statutes. In
the event an export license is required to execute the transfer, LICENSEE shall apply and obtain
approval for such license through the appropriate U.S. government agency. Warning: An
unsecured internet transfer (ftp) is an export for purposes of this Agreement,
even if the destination address is a domestic site.

ARTICLE 19

SUPPORT, MAINTENANCE AND UPGRADES

19.1 No Software or technical support, training or upgrades are provided by CALTECH as part of this
Agreement; provided, however, that CALTECH shall provide best efforts to transfer the Software to
LICENSEE.

ARTICLE 20

RESTRICTED RIGHTS LEGEND

20.1 Use, duplication, or disclosure by the Government is subject to the restrictions as set forth
in FAR 352.227-14 (JUN 1987) Alternate III (g)(3), FAR 352.227-19
(JUN 1987), DFARS 3252.211-7015 (MAY 1991) or DFARS 3252.227-7013 (c)(I)(ii) (OCT
1988), as applicable. Contractor/Manufacturer is California Institute of Technology, Pasadena,
California.

ARTICLE 21

SEVERABILITY

21.1 If any provision(s) of this Agreement shall be held to be invalid, illegal, or unenforceable
by a court or other tribunal of competent jurisdiction, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby.

 

9

 

ARTICLE 22

NO IMPLIED WAIVERS

22.1 No failure or delay by CALTECH/JPL in enforcing any right or remedy under this Agreement shall
be construed as a waiver of any future or other exercise of such right or remedy by CALTECH/JPL.

ARTICLE 23

TAXES

23.1 LICENSEE agrees to pay any and all taxes (if applicable) on any amounts of royalties and/or
fees paid by LICENSEE to LICENSOR hereunder.

ARTICLE 24

GOVERNING LAW

24.1 This Agreement, entered into in the County of Los Angeles, shall be construed and enforced in
accordance with and be governed by the laws of the State of California without reference to
conflict of laws principles. The parties hereby consent to the personal jurisdiction of the courts
within the State of California.

ARTICLE 25

ENTIRE AGREEMENT AND AMENDMENTS

25.1 This Agreement constitutes the sole and entire agreement of the parties as to the matter set
forth herein and supersedes any previous agreements, understandings, and arrangements between the
parties relating hereto.

SIGNATURES FOLLOW

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective, valid,
and binding upon the parties as of the date below as executed by their duly authorized
representatives.

	 	 	 	 	 	 	 
	Accepted and Agreed:	 	 	 	 
	Arroyo Science, Inc (LICENSEE)	 	California Institute of Technology (CALTECH)
	 
	 	 	 	 	 	 
	By:

	 	/s/ Carl Kukkonen
	 	By:
	 	/s/ Lawrence Gilbert
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Authorized Signature	 	Authorized Signature
	 
	 	 	 	 	 	 
	Printed Name: Carl Kukkonen	 	Printed Name: Lawrence Gilbert
	 
	 	 	 	 	 	 
	Title: CEO	 	Title: Director Tech Transfer
	 
	 	 	 	 	 	 
	Date: 6/19/03	 	Date: 6/19/03

 

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