Document:

Exhibit 10.10

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

COLLABORATIVE DEVELOPMENT PROGRAM AGREEMENT

GLOBALFOUNDRIES Inc. — Intermolecular, Inc.

 

This Collaborative Development Program Agreement (“Agreement”) is made as of June 1st, 2011 (“Effective Date”) between GLOBALFOUNDRIES Inc., an exempted company incorporated under the laws of the Cayman Islands, and having a registered address at PO Box 309, Ugland House, Grand Cayman KY1-1104, Cayman Islands (“GF”), and Intermolecular, Inc., a Delaware corporation operating at 3011 North First Street, San Jose, California 95134 or designated Affiliate (“Intermolecular” or “IM”).  GF and IM are sometimes referred to herein individually as a “party” and collectively as the “parties”.

 

Now therefore, the parties agree as follows:

 

1.                                DEFINITIONS

 

1.1                                                 “Affiliate” shall mean any entity, controlling, controlled by, or under common control of a party to this Agreement.  For purposes of the Agreement, the direct or indirect ownership of more than fifty percent (50%) of the outstanding securities of, or voting interest in, an entity shall be deemed to constitute control.

 

1.2                                                 “[*] Licensees” shall mean the following companies: [*] and [*].

 

1.3                                                 “Agreement Term” shall mean the term of the Agreement as set forth in Section 11.1.

 

1.4                                                 “AP-30” shall mean IM’s proprietary HPC tool, consisting of hardware and software and configured [*] on [*].

 

1.5                                                  “Background IP” of a party shall mean all Intellectual Property Rights that are (i) owned, sublicenseable without payment to any third party or otherwise solely controlled by a party or its Affiliates as of the Effective Date; or (ii) created, conceived or reduced to practice by a party’s or its Affiliates’ employees, contractors or agents outside the performance of this Agreement or prior to the Effective Date.

 

1.6                                                 “Collaborative Development Program” or “CDP” shall mean the Services that are conducted in accordance with the Development Plan.

 

1.7                                                  “CDP  Field” shall mean technologies, methods and embodiments for materials, processes, apparatus, process integration, and device integration, or any combination thereof, used for the research, development, commercialization or manufacturing of [*].

 

1.8                                                 “CDP IP” shall mean any Intellectual Property Rights developed specifically under the Development Plan pursuant to the Agreement, other than Intellectual Property Rights  which are included as an HPC Derivative which may include GF CDP IP and/or Joint CDP IP after review and approval as such by the Operating Committee.

 

1.9                                                  “CDP Term” shall mean the term of the Development Plan as set forth in Section 2.11.

 

1.10                                          “Confidential Information” shall mean any information disclosed by one party to the other in connection with this Agreement, whether in electronic, written, graphic, oral, machine readable or other tangible or intangible form, that is marked or identified at the time of disclosure as “confidential” or “proprietary” or in some other manner so as to clearly indicate its confidential nature. The deliverables provided by one party to another party under the CDP, and materials, extracts, notes,

 

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analyses, summaries or minutes between the parties from which the substance of confidential information can be inferred or otherwise understood, shall be considered Confidential Information of the disclosing party.  Except as specifically provided in Section 7 below, any terms and conditions of this Agreement shall constitute Confidential Information of each party.

 

1.11                                          “Development Plan” shall mean the mutually agreed upon written plan describing the CDP Services and other activities to be conducted by each party and the deliverables that are the desired outcome of the CDP Services.

 

1.12                                          “Development Plan Success Factors” shall mean the mutually agreed upon written technical specifications and timelines for completion of key milestones for each Project.

 

1.13                                          “FTE” shall mean an employee or contractor assigned to a CDP based on approximately one hundred sixty-six hours of professional services performed by one person during a one month period, or the same number of hours in aggregate performed by two or more persons during a one month period.

 

1.14                                          “HPC Technology” shall mean technology developed during the performance of this Agreement that is related to combinatorial processing of multiple regions of a substrate to produce, evaluate, analyze or characterize different materials, chemicals, processes, process and integration sequences, structures, and techniques related to semiconductor fabrication.

 

1.15                                          “Informatics Software” shall mean the IM software platform enabling the operation of the Dry and Wet Workflows and the gathering and sharing of CDP related information through a web-based interface designed and deployed by IM.

 

1.16                                          “Intellectual Property Rights” shall mean all U.S. and foreign rights in and to all (a)  patents and patent applications, including all divisions, substitutions, continuations, continuation-in-part applications, and reissues, re-examinations and extensions thereof, (b) copyrights and moral rights, (c) unpatented information, trade secrets, know-how, invention disclosures, engineering notebooks, confidential information, data, or materials, (d) mask work rights, and (e) any other intellectual or other proprietary rights of any kind now known or hereafter recognized in any jurisdiction.

 

1.17                                          “Product” shall mean a product containing one or more semiconductor [*], manufactured by or for GF, a GF Affiliate or Third Party Licensee, including through contract manufacturers, utilizing , based on or derived from the CDP IP, or containing any device designs or architectures resulting from the CDP. Product may be delivered to a customer in any form including without limitation, wafer form, packaged and unpackaged form.

 

1.18                                          “CDP  Services” shall mean services and other activities that IM employees perform under the Development Plan pursuant to the Agreement.

 

1.19                                          “Third Party” shall mean any person or entity other than GF and its Affiliates, IM and its Affiliates, and their permitted assigns.

 

1.20                                          “Third Party Licensee” shall mean an entity other than any GF Affiliate which is an integrated circuit manufacturer or designer to whom GF grants a license or sublicense in and to all or a portion of the CDP IP pursuant to Sections 3.6.2 and 3.6.3.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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1.21                                          “Wet Workflows” shall mean [*] using HPC Technology, including, but not limited to, [*] and [*] systems.

 

2.                                COLLABORATIVE DEVELOPMENT PROGRAM

 

2.1                                                 Collaborative Development Program.  Subject to the terms and conditions set forth herein, including the payment of CDP Service Fees by GF as set forth in Section 6.1, GF and IM will conduct the CDP in accordance with the Development Plan attached hereto as Exhibit A, which is hereby incorporated into this Agreement.  The Development Plan will consist of a series of separate development activities (hereinafter “Project(s)”) based on the initial program applications listed in Exhibit A.  Each Project shall be assigned one of three (3) categories (“Project Categories”) as identified in Sections 6.3.1, 6.3.2 and 6.3.3.  The Development Plan may be revised from time to time by mutual written agreement of the parties.

 

2.2                                                 FTEs & Quality of Work.    IM will provide a quarterly average of [*] FTEs as of the Effective Date growing to a quarterly average of [*] FTEs in [*] and maintained through the CDP Term to support the development activities in the Development Plan.  IM will guarantee the quality of its CDP Development Plan work to be at or above the level of value GF engineers expect by pre-aligning the Development Plan Success Factors.  IM will deliver high quality CDP IP through evaluation of the broadest possible range of solutions and leveraging HPC enabled accelerated learning cycles.  If the parties deem that the Development Plan requires an amount of FTEs to be contributed by IM to be less or more than the aforementioned amounts during the Initial Term of this Agreement, then a proportional adjustment in the amount of CDP Service Fees will apply.

 

2.3                                                 Project Managers.  Each party shall by written notice to the other party appoint a principal point of contact to be its project manager (“Project Manager”) for the CDP, who shall coordinate and act as a liaison with the other party with respect to the activities in the Development Plan.  A party may from time to time change its Project Manager upon written notice to the other party.  Prior to the commencement of each Project, the Project Managers shall determine the scope of work conducted by the parties and the resources assigned (including the allocation of the FTEs) for each Project, and identify the appropriate Project Category for the Project.  Project Managers will determine the frequency of meetings on a Project by Project basis.  Project Managers will ensure that the development activities comply with planned timelines, resource usage and are meeting milestones that have been defined.  Prior to the beginning of each Project, the Project Managers will estimate out-of-pocket expenses, for each Project under the Development Plan, and establish a forecast for the total out-of-pocket expense budget for such Project.  If out-of-pocket requirements exceed initial forecast then the Project Managers will obtain approval from Operating Committee.  Upon completion of the projects, IM’s Project Manager will ensure a detailed report is provided outlining all learning associated with the Project.  Additionally, IM will support GF in the implementation of CDP IP.  IM’s Project Manager will ensure, by working collaboratively with GF’s Project Manager, that a sufficient backlog of Projects are identified and proposed Development Plan Success Factors are created to mitigate delay associated with new project start-up.

 

2.4                                                 Facilities & Workspace.  IM will provide adequate facilities and workspace for up to [*] GF employees at IM’s HPC R&D Center in San Jose, CA and additional resources as are necessary to support IM’s obligations pursuant to the Development Plan.  IM will provide badge access, landline phone connection, internet access, and cubicle or office space.  GF employees must complete IM’s standard confidentiality and safety training prior to being able to work in IM’s HPC R&D Center.  IM will provide adequate facilities space for storage of GF wafers, materials, targets and any other assets required to enable the Development Plan.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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2.5                                                 Operating Committee.  The parties will establish an operating committee (the “Operating Committee”) to oversee the performance of the Collaborative Development Program, monitor progress of the CDP, resolve any disputes or disagreements between the parties and escalate any remaining disputes, as necessary, and ensure open communications among the parties.  The Operating Committee will initially be comprised of at least one (1) representative from each party (hereinafter “CDP Manager”) or such other equal number of representatives as the parties may from time to time agree in writing, with each party’s representatives selected by that party, provided that the CDP Manager of such party remains on the Operating Committee.  Any party may replace any of its Operating Committee members at any time, upon written notice to the other party.  The Operating Committee will meet on a quarterly basis or as otherwise agreed by the parties, at locations or in a manner agreed by the parties.  IM will assign an executive sponsor (reporting to IM’s CEO) responsible for maintaining a close alignment between Development Plan activities and IM’s overall corporate direction to facilitate project success.  IM’s executive sponsor will also serve on the Operating Committee.  The Operating Committee is responsible for approving and amending the Development Plan Success Factors for each Project.

 

2.6                                                 Intellectual Property Consulting.  IM will provide periodic intellectual property workshops to outline the legal landscapes of IM CDP IP and Joint CDP IP (collectively “CDP Patents”).  IM shall provide actionable recommendations to the Operating Committee to enable optimal securing of CDP Patents.  Monthly landscape reports will be provided proactively to GF identifying the status and progress of invention disclosures related to the CDP Patents.  [*].  GF personnel will submit their sole and joint inventions to GF’s legal department in accordance with its standard practices.

 

2.7                                                 High Volume Manufacturing, OEM and Supply Chain Support.  CDP Services provided by IM will be compatible with High Volume Manufacturing.  IM will support activities required to achieve high volume manufacturing of Products based on CDP IP.  This entails supporting selection and qualification of equipment suppliers and other supply chain partners (including materials suppliers), as requested by GF.  IM will act in GF’s best interest to structure favorable business terms with supply chain entities when possible.  Any specific terms of such work will be part of the respective Projects in the Development Plan.

 

2.8                                                 Yield Improvement Assistance.  IM will rapidly redirect resources, at the guidance of the Operating Committee, to support yield improvement issues as necessary.  IM will leverage its HPC tools and domain expertise to accelerate the process of evaluating options enabling yield improvement.  Such work is expected to be short in duration and any specific terms of such yield improvement assistance work will be reviewed and approved by the Operating Committee prior to Project start.

 

2.9                                                 Informatics Access to Information.  IM acknowledges and agrees to provide GF timely access to CDP information from development activities by allowing a maximum of [*] concurrent Informatics software licenses during the CDP Term for GF designates.  IM will provide the necessary hosting, maintenance and support of Informatics hardware and software to ensure that high up-time, security and industry standard back-up protocols are in place.

 

2.10                                          Development Records.  GF and IM shall maintain records of the CDP Services, or cause such records to be maintained, in sufficient detail and in good scientific manner as will properly reflect the work done and results achieved in the performance of the Development Plan, including information sufficient to establish dates of conception and reduction to practice of inventions.

 

2.11                                          Period of development activities in the Development Plan.  The initial period of all development activities in the Development Plan (“Initial Period”) shall be for three (3) years starting on the Effective Date.  [*].

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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Upon expiration of the Initial Period if not previously terminated, the period of development activities shall automatically renew for successive periods of 12 months each unless either party provides written notice to the other party, given not less than [*] prior to the expiration of the then-current period (hereinafter “CDP Term”), of its intent to not continue such development activities after such expiration.  Notwithstanding the foregoing, if during said [*] period, GF elects not to extend the CDP Term, GF shall provide IM written notice of non-renewal during said period.  Such non-renewal shall be effective [*] from such notice. Such expiration shall not impact termination of the Agreement which shall be solely governed by Section 11 (“Termination”).

 

3.                                IP OWNERSHIP AND LICENSES

 

3.1                                                 Background IP.  Each party shall continue to own all of its own Background IP.

 

3.2                                                 HPC Technology and Derivatives.  Notwithstanding anything to the contrary in this Agreement, [*] shall own all right, title and interest in and to HPC Technology and all HPC Technology improvements, derivatives and modifications developed by either party or both parties during the CDP Term and based on IM provided tools, software or information enabling the use of HPC Technology (“HPC Derivatives”).  [*] hereby assigns, and agrees to assign to [*] in the future Intellectual Property Rights in and to HPC Derivatives.

 

3.3                                                 CDP IP.

 

3.3.1      By GF.  GF shall own all right, title and interest, including Intellectual Property Rights, in CDP IP that is solely invented by GF’s employees, contractors or agents (“GF CDP IP”).

 

3.3.2      By IM.  Subject to Section 3.3.4 below, IM shall own all right, title, and interest, including Intellectual Property Rights, in CDP IP that is solely invented by IM’s employees, contractors or agents (“IM CDP IP”).; .

 

3.3.3      Joint.  Subject to Section 3.3.4 below, IM and GF shall jointly possess all right, title, and interest, including Intellectual Property Rights, in any CDP IP that is jointly invented by employees, contractors or agents of GF and IM (“Joint CDP IP”).  Subject to the terms of this Agreement, GF shall have the right to assign its interests in and/or license and/or enforce such Joint CDP IP without accounting to or further consent from IM.  In the event that IM’s cooperation is required in any enforcement action by GF, IM agrees to provide such cooperation.

 

3.3.4      GF Option. At any time prior to the filing of a priority patent application for a particular invention that qualifies as CDP Patents, GF may elect, at its sole discretion, the sole rights to obtain patent protection for such invention in its own name in any jurisdiction; provided, however, GF may not, without IM’s consent, elect more than [*] inventions that qualify as Joint CDP IP in each [*] period of the Agreement beginning on the Effective Date..  GF will be solely responsible for the costs of obtaining such patent protection.  IM hereby assigns to GF all of its right, title and interest in such elected inventions and agrees to execute any papers required to perfect such patent protection.  Notwithstanding the foregoing, such assigned CDP Patents would be counted toward the [*] patent filings defined in section 2.6.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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3.4                                                 Cooperation.  Each party agrees to execute all papers, including patent applications and invention assignments, and otherwise agrees to assist the other party, as reasonably required and at the other party’s reasonable expense, to perfect in the other party the rights, title and other interests in their respective inventions owned by the other party under this Agreement.  In addition, each party agrees to notify the other party within a reasonable time when an invention disclosure is submitted by an employee or contractor of that party that may be owned by the other party under Sections 3.2 and/or 3.3 above.

 

3.5                                                 Collaboration Licenses

 

3.5.1      IM License to GF.  Subject to the terms of the Agreement, IM grants to GF for the CDP Term, a non-exclusive, non-transferable, non-sub-licensable, worldwide, royalty-free license under and to the IM Background IP and to any other Intellectual Property Rights IM contributes to the Development Plan under the CDP, solely to engage in the CDP and perform the activities set forth in the Development Plan, and not for the benefit of a Third Party.

 

3.5.2      GF License to IM.  Subject to the terms of the Agreement, GF grants to IM for the CDP Term, a non-exclusive, non-transferable, non-sub-licensable, worldwide, royalty-free license under and to the GF Background IP and to any other Intellectual Property Rights GF contributes to the Development Plan under the CDP, solely to engage in the CDP and perform the activities set forth in the Development Plan, and not for the benefit of a Third Party.

 

3.6                                                  Licenses to GF.  Subject to the terms and conditions of this Agreement, IM hereby grants to GF, within the CDP Field, a worldwide, non-exclusive, royalty-bearing, non-transferable (subject to Section 12.3) license under and to IM CDP IP  (i) to use, make, have made, import, offer to sell, sell, lease and otherwise dispose of the Products, (ii) to modify or make derivatives of the IM CDP IP, and (iii) to exercise the limited sublicense rights as set forth in Sections 3.6.1, 3.6.2  and 3.6.3 below.  Additionally, subject to the terms and conditions of this Agreement and to the extent it is necessary for GF to exercise its rights under sections (i), (ii) and (iii) (hereinafter “Licensed Rights”) and provided IM has the right to grant such a license, IM hereby grants to GF a non-exclusive, worldwide license under IM’s rights in IM’s Background IP to exercise the Licensed Rights.  The licenses granted herein shall be perpetual and shall not be revocable by IM as long as GF makes its payments under Section 6.

 

3.6.1      GF Affiliates.  Subject to the terms and conditions of this Agreement, GF shall have the right, but not the obligation, to grant sublicenses to part or all of IM CDP IP (including IM’s rights in IM’s Background IP necessary to exercise such sublicenses) to GF Affiliates to use, make, have made, import, offer to sell, sell, lease and otherwise dispose of  the Products subject to the same terms with respect to GF under this Agreement.

 

3.6.2      GF Third Party Licenses to [*] Licensees.  Subject to the terms and conditions of this Agreement, including the payment of royalties by GF (in accordance with Section 6.8) and as long as GF maintains a license to the CDP IP, GF shall have the right, but not the obligation, to grant (directly or indirectly) sublicenses to part or all of IM CDP IP (including IM’s rights in IM’s Background IP necessary to exercise such sublicenses) to [*] Licensees to use, make, have made, import, offer to sell, sell, lease and otherwise dispose of Products subject to the same terms with respect to GF under this Agreement.  The sublicense granted under this section shall not be sublicensable; except that IM

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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understands and accepts that [*] Licensees will have the rights to sublicense their subsidiaries.  The licenses granted in this subsection 3.6.2 shall only apply to Products that incorporate in whole or part a technology jointly developed by GF and one or more of the [*] Licensees.

 

3.6.3      GF Third Party Licenses to Third Parties other than [*] Licensees.  Subject to the terms and conditions of this Agreement, including the payment of royalties by GF (in accordance with Section 6.9) and as long as GF maintains a license to the CDP IP, GF shall have the right, but not the obligation, to grant sublicenses to part or all of IM CDP IP (including IM’s rights in IM’s Background IP necessary to exercise such sublicenses) to Third Parties other than [*] Licensees to use, make, have made, import, offer to sell, sell, lease and otherwise dispose of Products subject to the same terms with respect to GF under this Agreement.

 

3.6.4      Exclusive License to GF in the CDP Field. Subject to the terms and conditions of this Agreement including GF’s obligation to make payments under Section 6, IM agrees that it will not grant any licenses to Third Parties under and to IM CDP IP and Joint CDP IP in the CDP Field without prior written approval from GF.

 

3.6.5      Exclusive License to IM outside the CDP Field.  GF agrees to consider in good faith any request from IM to grant it an exclusive, worldwide, license to grant sublicenses to Third Parties outside the CDP Field under GF’s rights in CDP IP. If such request is approved, the parties will enter into good faith negotiations on all terms for such licensing including compensation, if any.

 

3.7                                                 Responsibility for and Cost of Patenting.  Each party shall be solely responsible for and shall at its own expense determine whether or not to seek patent protection, prepare, file and prosecute patent applications and maintain the patents (collectively hereinafter “Manage”) in the CDP IP that is solely invented by the party’s employees, contractors or agents.    In good faith, both parties agree to mutually develop a process for managing Joint CDP IP and associated expenses.

 

3.8                                                   Intentionally left blank

 

3.9                                                  Reservation of Rights. Except for the rights expressly granted by each party to the other under this Agreement, all other rights are reserved.

 

4.                                                        HPC and Informatics License

 

4.1                                                 HPC Workflow Subscription and Access Fee.  During the CDP Term and subject to payment by GF of a subscription and access fee as set forth in Section 6.2, IM will provide GF and its Affiliates access, in conjunction with IM’s FTE resources and pursuant to the applicable Development Plan, to IM’s internal Wet and Dry Workflows, physical and electrical characterization capabilities, and Informatics Software (“IM Tools and Software”) to engage in activities under the Development Plan (“HPC Workflow Subscription and Access Fee”).  The HPC Workflow Subscription and Access Fee includes a non-transferable, worldwide license for GF to use HPC Technology and HPC Derivatives to the extent necessary for GF to carry out its obligations set forth in the Development Plan(s).  The HPC Workflow Subscription and Access Fee does not confer any ownership rights to GF in the IM Tools and Software.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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4.2                                                 Software License.  In consideration for the HPC Workflow Subscription and Access Fee, IM grants to GF and its Affiliates a non-exclusive, non-transferable license to use the Informatics Software solely to engage in activities under the Development Plan.  The Informatics Software can only be used by employees of GF and GF’s Affiliates and is not assignable or licensable by GF to any Third Party.  The license granted hereunder includes all updates in content and the current functionality of the Informatics Software.  Except for the express license granted in this Section 4.2, IM reserves all rights to itself, and does not grant to GF any other licenses, whether express or implied, to the Informatics Software or any intellectual property rights embodied therein or related thereto.

 

4.2.1      GF acknowledges and agrees that the features or the graphical user interface of the Informatics Software (“User Interface”), including, without limitation, icons, menus and screen designs, screen layouts, and command and screen sequence, are proprietary to IM and/or its licensors, and are disclosed to GF under a condition of confidentiality.  GF agrees that it will not create software programs incorporating any proprietary part of the User Interface.  GF further acknowledges that the User Interface is a copyrighted work of IM and/or its licensors.

 

4.2.2      GF agrees (i) not to distribute, sublicense, assign, sell, rent or otherwise transfer the Informatics Software; (ii) not to copy, in whole or in part, the Informatics Software or any documentation related to the Informatics Software; (iii) not to modify, reverse compile or reverse assemble all or any portion of the Informatics Software; (iv) not to use the Informatics Software outside the limitations of the license granted; and (v) not to create any derivative works from or related to the Informatics Software.

 

5.                                                        HPC Tool Purchase

 

5.1                                                 IM hereby grants to GF and GF hereby accepts from IM, a limited term right to purchase an [*] for $[*] under a mutually agreed tool purchase agreement.  In order to exercise the right, GF shall in its sole discretion, no later than [*] days from the Effective Date, inform IM of its intent to purchase and by [*] issue a purchase order pursuant to the quote in Exhibit C.  During the CDP Term, IM will provide to GF maintenance and support of the [*] free of charge.  After the CDP Term, IM will provide such maintenance and support at an annual rate of $[*] of which up to $[*] may be offset by GF from its obligations to make payments to IM under Section 6.3.

 

5.2                                                 IM hereby grants to GF and GF hereby accepts from IM, a limited term right to purchase an [*] for $[*] under a mutually agreed tool purchase agreement.  In order to exercise the right, GF shall in its sole discretion, no later than [*] days from the Effective Date, inform IM of its intent to purchase and by [*] issue a purchase order pursuant to the quote in Exhibit D.  During the CDP Term, IM will provide to GF maintenance and support of the [*] free of charge.  After the CDP Term, IM will provide such maintenance and support at an annual rate of $[*].

 

5.3                                                 IM hereby grants to GF and GF hereby accepts from IM, a limited term right to obtain subscription and access to an additional [*] in exchange for a payment of $[*] per quarter.  In order to exercise the option, GF shall, no later than [*] days from the Effective Date, inform IM of its intent to subscribe and by [*] issue a purchase order pursuant to the quote in Exhibit E.

 

6.                                                        PAYMENTS

 

6.1                                                  CDP Service Fees.    During the CDP Term, in  consideration of services rendered, IM shall invoice GF as follows:

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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(a)                                                   [*]

(b)                                                  [*]

(c)                                                   [*]

(d)                                                  [*]

(e)                                                   [*]

 

IM shall invoice GF on the first day of each quarter.  Invoices pursuant to 6.1(a), 6.1(b) and 6.1(c) above shall be payable no sooner than [*] and no later than [*].  All other invoices shall be paid no later than [*] days from the invoice date.  In addition to the amounts set forth above, GF agrees to provide or pay for mutually agreed and pre-approved (by GF) out-of-pocket expenses including consumables (such as wafers, mask sets, materials, and targets), outsourced metrology and characterization not supported internally by IM, and other expenses to support the CDP Services.  Prior to the beginning of each Project, the Project Managers will estimate out-of-pocket expenses, for each Project under the Development Plan, and establish a forecast for the total out-of-pocket expense budget for such Project.

 

6.2                                                 HPC Workflow Subscription and Access Fee.  During the CDP Term, IM shall invoice GF for subscription and access to the Wets Workflow and for subscription and access to the Dry Workflow (for purposes of this section “Dry Workflow” refers to the tools described in Exhibit F) as follows —

 

6.2.1                                          [*]:

(a)                                                   [*]

(b)                                                  [*]

(c)                                                   [*]

6.2.2                                          [*]:

(a)                                                   [*]

(b)                                                  [*]

(c)                                                   [*]

(d)                                                  [*]

6.2.3                                          [*]. [*]. [*].

 

6.3                                                 Royalties under IM licenses to GF based on CDP IP.    It is expected that GF or GF’s Affiliates will develop, manufacture, have manufactured, distribute, lease, sell or otherwise dispose of (collectively “Commercialize”) Products that utilize, are derived from or incorporate (collectively “Based on”) the CDP IP developed as a result of conducting each Project (hereinafter “Project Products”).  For all CDP IP developed during a Project (hereinafter “Project IP”), as partial consideration for the licenses granted in Section 3.5, GF shall pay IM a royalty as a percentage of gross revenues, excluding any [*] costs, from unrelated companies for Project Products Commercialized by GF and GF’s Affiliates.  The royalty percentage to be applied will depend on the Project Category as identified in the Development Plan.  Each Project shall be associated with a Project Category prior to the commencement of such Project.  For avoidance of doubt, any IP created on [*] described in section 5.1 after the CDP Term and outside of a Project in the Development Plan, shall be royalty-free.  If the Development Plan Success Factors are not met or exceeded as agreed upon by the Operating Committee, the royalty percentage will be adjusted in accordance with the guidelines provided by the Operating Committee.  Notwithstanding the aforementioned, Annual Royalty Caps in Section 6.7 remain in effect.

 

6.3.1      Category A is related to [*]. Subject to the minimum payments identified in Section 6.6, GF shall pay IM [*] on the Commercialization of Project Products that are Based on Project IP from this Category A.

 

6.3.2      Category B is related to [*]. Subject to the minimum payments identified in Section 6.6 and the maximum payments identified in Section 6.7, GF shall pay IM [*] for Project

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

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Products Commercialized by GF and GF’s Affiliates where such Project Products are Based on Project IP from this Category B.

 

6.3.3      Category C is related to [*]. Subject to the minimum payments identified in Section 6.6 and the maximum payments identified in Section 6.7, GF shall pay IM [*] for Project Products Commercialized by GF and GF’s Affiliates where such Project Products are Based on Project IP from this Category C.

 

6.4                                                 Royalty Clock. For each Project IP,  GF shall be subject to the royalties identified in Section 6.3 for a period of [*] from the date of first commercial sale of the Project Product (“Project Royalty Period”) containing all or any portion of Project IP.  For the purpose of the aforementioned clause, a commercial sale of a Project Product is the result of a bona fide sale of a Project Product to a customer.  A commercial sale is not (i) a shipment or sale of samples of a Project Product or (ii) the receipt of any payments from customers for non-recurring engineering fees related to any Project Product.  For the avoidance of doubt, a new and separate Project Royalty Period will be applicable as to each Project IP that is utilized in any Project Product provided such Project Royalty Period does not extend beyond [*] for Project IP developed during the Initial Period.  For Project IP developed beyond the Initial Period (subject to a mutually agreed extension of the Development Plan per Section 2.11), the parties shall negotiate in good faith the duration of such Project Royalty Period.  In addition, for the purposes of clarity, the Project Royalty Period shall be triggered as to each Project IP that is newly utilized in any Project Product.

 

6.5                                                 Product Based on IP from multiple Projects.  In the event a Project Product is Based on Intellectual Property Rights from multiple Projects in multiple Project Categories, the applicable royalty percentage for such Product shall be the sum of each Project Category percentage.  For the avoidance of doubt, at no time shall the total royalties paid by GF under Section 6.3 during any calendar year exceed the annual royalty caps provided in Section 6.7.  In no event shall the total royalty percentage per Product exceed [*] of GF Product revenues.

 

6.6                                                 Minimum Royalty Payments starting in [*].  Notwithstanding the foregoing royalty calculations in Section 6.3, and beginning in [*], GF shall pay IM an annual minimum of $[*] in exchange for the licenses granted by IM to GF and GF’s Affiliates in Section 3.6.  Quarterly minimum payments of $[*] shall be due and payable by GF at the end of each calendar quarter beginning in the first quarter of [*] and ending in the last quarter of [*].  No minimum royalty payments shall be due for the first quarter of [*] and thereafter.

 

6.7                                                 Annual Royalty Caps. The royalties payable by GF to IM under Section 6.3 shall be capped for each calendar year at the maximum annual royalty payment amounts provided below -

 

[*]

 

6.8                                                 Royalties under GF sublicenses to [*] Licensees.  GF may grant royalty-free sublicenses to [*] Licensees subject to payments in Sections 6.3 and 6.6.

 

6.9                                                 Royalties under GF sublicenses to Third Parties other than [*] Licensees.  GF shall pay IM [*] received by GF from Third Party Licensees other than [*] Licensees.  If, under such sublicense to such Third Party Licensee, GF receives a license under patents owned or controlled by such Third Party Licensee, then GF shall pay IM [*] (net of GF’s direct costs) received by GF from such Third Party Licensee.  .

 

6.10                                          Royalties under IM licenses to Third Party Licensees in the CDP Field.  If an opportunity for IM to grant a license under CDP IP to Third Parties in the CDP Field were to arise, GF and IM will

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

10

 

agree in good faith to discuss whether such a license promotes the business interests of both parties.  If GF agrees that IM may grant such a license, IM shall pay GF [*] (net of IM’s direct costs) received by IM from such Third Party Licensees.

 

6.11              Third Party Royalties.  Each party shall be responsible for all of its own costs of commercializing products or licensing Intellectual Property Rights, including any payments to Third Parties for work done by such Third Parties or for licenses necessary for the manufacture, sale, or use of Products by a party or its Affiliates or sub-licensees.

 

6.12              Payments and Reporting on Royalties.  The accounting periods under this Agreement shall be on a calendar quarter basis ending on each March 31, June 30, September 30, and December 31 of each year, with the first accounting period ending on the end of the first such calendar quarter beginning in the first quarter of [*].  Within [*] days after the end of each accounting period, GF shall furnish to IM a written report, certified by a duly authorized officer of GF stating the computed royalties due, if any, and the royalty payment due shall accompany such written report.  The written report shall set forth the number of Project Products Commercialized, the associated Category in accordance with Section 6.3, the associated revenues and such other information as may be necessary to enable the calculation of royalties due under this Agreement.  If no computed royalties are due, the basis for such conclusion shall be set forth in the written report and the minimum payment in accordance with Section 6.6 shall accompany such report.

 

6.13              Processing of payments. All payments hereunder shall be made in U.S. dollars to IM.  All payments due to IM under this Agreement shall be made by bank wire transfer as follows:

 

	
International Wire Transfer
    
	
[*]
    	
 
    
	
Routing & Transit #: 
    	
[*]
    
	
SWIFT CODE :
    	
[*]
    
	
For credit of:
    	
[*]
    
	
Credit account #:
    	
3[*]
    
	
By order of:
    	
[*]
    

 

or another U.S. bank account designated in writing by IM.  All payments not paid when due shall bear simple interest at a rate of [*] per month or the highest rate allowed by law, whichever is less.  Unless expressly stated in Section 6.1, 6.2 or 6.12, payments shall be made 45 days after invoicing.

 

6.14              Taxes.  The fees and royalty rates specified in this Agreement are exclusive of any sales, use, excise, value-added or similar taxes, and of any export and import duties, which may be levied upon or collectible by IM as a result of the CDP Services, or the licenses granted in this Agreement or its Exhibits.  GF agrees to pay and otherwise be fully responsible for any such taxes and duties (but for avoidance of doubt, excluding any tax based upon IM’s net income), except that if necessary, GF shall withhold from amounts otherwise payable to IM, and pay on IM’s behalf, withholding taxes that may be required by applicable law to be withheld by GF and GF shall provide IM with tax receipts to establish that all such taxes have been paid and are otherwise available to IM for credit for U.S. income tax purposes or as otherwise available to IM.

 

6.15              Currency Conversions.  If any currency conversion shall be required in connection with the calculation of royalties hereunder, such conversion shall be made using the medium exchange rate of buying and selling exchange rates for conversion of the foreign currency into U.S. Dollars, quoted for current transactions reported in The Wall Street Journal for the last business day of the calendar quarter to which such payment pertains.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

11

 

6.16               Records; Inspection.  GF shall keep complete, true and accurate books of account and records on its own behalf and on behalf of the GF Affiliates for the purpose of determining the royalty amounts payable under this Agreement.  Such books and records shall be kept at GF or its designated Affiliate for at least three (3) years following the end of the calendar quarter to which they pertain.  Such records will be open for inspection during such three (3) year period by an independent auditor who is reasonably acceptable to the parties and agrees to be bound to confidentiality protections of similar scope to those set out in Section 7 hereof, solely for the purpose of verifying royalty statements hereunder. Such auditor shall be instructed to report only as to whether there is a discrepancy, and if so, the amount of such discrepancy.  Such inspections may be made no more than once each calendar year, at reasonable times and on reasonable notice.  Inspections conducted under this Section shall be at the expense of IM, unless a variation or error producing an increase exceeding [*] of the royalties payable for any period covered by the inspection is established and confirmed in the course of any such inspection, whereupon all reasonable costs relating to the inspection for such period and any unpaid amounts that are discovered will be paid promptly by GF.  Further, IM will have the right thereafter to conduct additional inspections from time to time for reasonable cause.  Each party agrees to hold in confidence pursuant to Section 7 all information concerning royalty payments and reports, and all information learned in the course of any audit or inspection, except to the extent necessary for that party to reveal such information in order to enforce its rights under this Agreement or if disclosure is required by law.

 

7.                                CONFIDENTIALITY

 

7.1                Confidentiality.  Except as otherwise expressly provided herein, the parties agree that the receiving party shall not, except as expressly provided in this Section 7, disclose to any Third Party, or use for any purpose, any Confidential Information furnished to it by the disclosing party pursuant to this Agreement, except in each case to the extent that it can be established by the receiving party by competent proof that such information:

(a) was already known to the receiving party, other than under an obligation of confidentiality, at the time of disclosure;

(b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving party;

(c) became generally available to the public or otherwise part of the public domain after disclosure and other than through any act or omission of the receiving party in breach of this agreement;

(d) was independently developed by the receiving party without use of, or reference to, the other party’s Confidential Information, as demonstrated by documented evidence prepared contemporaneously with such independent development; or

(e) was disclosed to the receiving party, other than under an obligation of confidentiality, by a Third Party authorized and entitled to disclose such information to others.

 

7.2                Permitted Use and Disclosures.  Notwithstanding the restrictions of Section 7.1, each party hereto may (a) use Confidential Information disclosed to it by the other to the extent necessary for that party to perform its obligations set forth in the CDP and (b) use or disclose Confidential Information disclosed to it by the other party to the extent such use or disclosure is reasonably necessary in (i) exercising the rights and licenses granted hereunder, (ii) prosecuting or defending litigation, (iii) complying with applicable laws, governmental regulations or court orders or submitting information to tax or other governmental authorities (including the Securities and Exchange Commission), or (iv) preparing, filing and prosecuting patent applications; in each case, provided that if a party is required to make any such disclosure, other than pursuant to a confidentiality agreement, it will give reasonable advance notice to the other party of such disclosure and will use reasonable efforts to secure confidential

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

12

 

treatment of such information (whether through protective order or otherwise), except to the extent inappropriate with respect to patent applications.  It is understood that either party may also disclose the Confidential Information of the other party upon receipt of the written consent to such disclosure by a duly authorized representative of the other party.

 

7.3                 Nondisclosure of Terms.  Each of the parties hereto agrees not to disclose the terms of this Agreement to any Third Party without the prior written consent of the other party hereto, except to such party’s attorneys, accountants, advisors, investors and financing sources and their advisors and others on a need to know basis under circumstances that reasonably ensure the confidentiality thereof, to the extent required by law, in connection with the enforcement of this Agreement or rights under this Agreement or in connection with a merger, acquisition, financing transaction or proposed merger, acquisition or financing transaction.

 

7.4                 Firewall Protection.   In addition to conforming to the confidentiality provisions in this Section 7, the following shall apply:

 

7.4.1      IM will construct an IP firewall as described below in this Section around IM employees providing CDP Services.  Only such employees of IM will be allowed to have access to such GF Confidential Information and information distribution will be based strictly on a need-to-know basis.  Such employees of IM shall solely use such GF Confidential Information in providing CDP Services to GF.  Physical copies of GF Confidential Information shall be securely locked when not in use such that only those IM employees providing such CDP Services shall have access to such information.

 

7.4.2      GF will construct an IP firewall as described below in this Section around GF and its Affiliates’ employees who have access to IM’s facilities.  GF shall instruct its and its Affiliates’ employees and agrees that they will remain in designated areas within IM’s facilities as defined by IM from time to time.  GF agrees that, for the Initial Period, its and its Affiliates’ employees will only use IM’s HPC Technology, including, the IM Tools and Software for the purpose defined in any applicable CDP with the exception of the tools described in section 5.1 and 5.2 of this agreement which, subject to the approval of the Operating Committee, can be used for GF exclusive and sole use to the extent it does not reasonably interfere with a Project in the Development Plan.  Such employees of GF shall only disclose such IM Confidential Information to other GF employees who have a need to know.

 

7.5                Residuals. Notwithstanding anything herein to the contrary, neither party will be in breach of this Agreement based on the use of Residuals by its or its Affiliates’ employees or directors (who had authorized access) for any purpose, including without limitation use in development, manufacture, promotion, sale and maintenance of its products and services; provided that this right to Residuals does not represent a license under any valid patents, copyrights or other Intellectual Property Rights of the disclosing party.  The term “Residuals” means any information that is retained in the unaided memories of the receiving party’s employees who have had access to the disclosing party’s Confidential Information pursuant to the terms of this Agreement.  An employee’s memory is unaided if the employee has not intentionally memorized the Confidential Information for the purpose of retaining and subsequently using or disclosing it.  Nothing in this Section is intended to or will modify the royalty obligations of GF for Products.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

13

 

8.                                LIMITED REPRESENTATIONS AND WARRANTIES

 

8.1                 By IM.  IM represents and warrants that: (a) it has the right and authority to enter into this Agreement, and to fully perform its obligations hereunder; (b) this Agreement is a legal and valid obligation binding upon it and enforceable in accordance with its terms; and (c) IM owns, or possesses a valid and enforceable license to use, and has full power and authority to license or sublicense, as the case may be, all IM’s Intellectual Property Rights licensed or sublicensed to GF pursuant to this Agreement, including, without limitation, HPC Technology and IM CDP IP

 

8.2                 By GF.  GF represents and warrants that: (a) it has the right and authority to enter into this Agreement, and to fully perform its obligations hereunder; (b) this Agreement is a legal and valid obligation binding upon it and enforceable in accordance with its terms; and (c) GF owns, or possesses a valid and enforceable license to use, and has full power and authority to license or sublicense, as the case may be, all GF’s Intellectual Property Rights licensed or sublicensed to IM pursuant to this Agreement

 

8.3                 Disclaimer.  IM and GF specifically disclaim any representation, warranty or guarantee that the CDP or the use of HPC Technology will be successful, in whole or in part.  It is understood that the failure of the parties to successfully develop and commercialize the CDP IP in the course of the CDP or any technology developed through use of HPC Technology shall not constitute a breach of any representation or warranty or other obligation under this Agreement.  EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, GF AND INTERMOLECULAR MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OR CONDITIONS OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO BACKGROUND IP, CDP DEVELOPED TECHNOLOGY, HPC TECHNOLOGY OR ANY INFORMATION DISCLOSED HEREUNDER, OR ANY DELIVERABLES PROVIDED HEREUNDER, AND HEREBY EXPRESSLY DISCLAIM ANY WARRANTIES OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, OR VALIDITY OF ANY CDP IP OR HPC TECHNOLOGY, PATENTED OR UNPATENTED, OR NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

 

9.                                INDEMNIFICATION

 

9.1                IM agrees to defend GF from and against any Third Party action, suit or proceeding (each, a “Claim”) against GF alleging that the HPC Technology, HPC Derivatives, IM Background IP, Joint CDP IP and IM CDP IP licensed to GF under this Agreement directly infringes upon the patents of such Third Party and to indemnify GF against any liabilities, losses, damages, costs and expenses (including reasonable attorneys’ fees) finally awarded against GF as a result of such Claims or agreed upon by IM in writing in settlement of such Claims; provided that GF provides IM (a) prompt written notice of any communication that may reasonably lead to such Claim (including assertion or demand letters), (b) sole control of the defense or settlement of such Claims, and (c) reasonable assistance in the defense or settlement of such Claims at IM’s request and IM’s reasonable expense.

 

9.2                Notwithstanding the foregoing, IM will not be obligated to defend or indemnify GF to the extent that a Claim is based upon IM’s literal compliance with GF’s requirements, designs, specifications, or instructions; use of the Products by GF in combination with other products not supplied by IM or in a manner not specified by IM, if such infringement would not have occurred but for such combined use; or modification of the Products by anyone other than IM, if such infringement would not have occurred but for such modification.

 

10.                         LIMITATION OF LIABILITY

 

EXCEPT FOR A BREACH BY EITHER PARTY OF THEIR RESPECTIVE CONFIDENTIALITY OBLIGATIONS UNDER SECTION 7, OR INDEMNIFICATION UNDER SECTION 9, OR A BREACH OF ANY LICENSE RESTRICTIONS, UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO THE OTHER UNDER ANY CONTRACT, STRICT LIABILITY,

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

14

 

NEGLIGENCE OR OTHER LEGAL OR EQUITABLE THEORY, FOR ANY LOST PROFITS, LOST BUSINESS OPPORTUNITY, INJURY TO BUSINESS REPUTATION OR EQUIPMENT DOWNTIME, OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT OR SPECIAL DAMAGES OF ANY KIND IN CONNECTION WITH THE SUBJECT MATTER OF THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND IN NO EVENT WILL EITHER PARTY’S AGGREGATE LIABILITY TO THE OTHER EXCEED THE AMOUNTS PAID OR PAYABLE BY GF TO INTERMOLECULAR IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

 

11.                         TERMINATION

 

11.1              Term of Agreement.  The Agreement shall be from the Effective Date and, unless terminated or canceled as provided in this Section 11 of the Agreement, shall remain in full force and effect until 5 years from the date of the last sale of a product.  Notwithstanding any expiration or termination of the Agreement, other than termination by IM for cause, GF shall have the right to continue developing, manufacturing and having manufactured, distributing and selling current or future Products pursuant to the licenses and subject to the payment of the royalties set forth in this Agreement.

 

11.2              Termination for Breach.  Either party to this Agreement may terminate this Agreement in the event the other party shall have materially breached or defaulted in the performance of any of its material obligations hereunder, and such default shall have continued for [*] after written notice thereof was provided to the breaching party by the non-breaching party.  Any termination shall become effective at the end of such [*] period unless the breaching party (or any other party on its behalf) has cured any such breach or default prior to the expiration of the [*] period.

 

11.3              Effect of Termination.

 

11.3.1      Accrued Rights and Obligations.  Termination of this Agreement for any reason shall not release either party hereto from any liability or obligation that, at the time of such termination, has already accrued to the other party or that is attributable to a period prior to such termination, nor shall it preclude either party from pursuing any rights and remedies it may have hereunder or at law or in equity with respect to any breach of this Agreement, except as set forth in Section 9.2.

 

11.3.2      Return of Confidential Information.  Upon any termination of this Agreement, IM and GF shall promptly destroy or return to the other all Confidential Information received from the other party other than as required to enforce, exercise or defend any continuing or surviving rights and obligations under this Agreement.

 

11.4              Survival.  If this Agreement terminates for any reason, then Sections 1, 3, 6.3 - 6.5, 6.7- 6.16, 7, 8, 9, 10, 11 and 12 of this Agreement shall survive.  [*].

 

12.                         MISCELLANEOUS

 

12.1              Governing Laws and Dispute Resolution. This Agreement shall be governed by and construed in accordance with the laws of the state of California in the United States, without regard to its choice of law rules.  All disputes between the parties in connection with  or arising out of this Agreement shall first be discussed in good faith between the parties in order to try to find an amicable solution in accordance with Section 12.2.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

15

 

12.2                Escalation. The parties shall make a good faith attempt to resolve any dispute or claim arising out of or related to this Agreement through negotiation.  Within thirty (30) days after notice of a dispute or claim is given by either party to the other party, the Operating Committee shall meet and make a good faith attempt to resolve such dispute or claim and shall continue to negotiate in good faith in an effort to resolve the dispute or claim or renegotiate the applicable section or provision without the necessity of any formal proceedings.  If the Operating Committee is unable to agree within thirty (30) days of their first meeting, then the matter will be referred to the parties’ designated executives (Vice President or above), who shall meet to attempt to resolve the dispute by good faith negotiations within thirty (30) days.  In the event the executives are unable to resolve such dispute either party may proceed with any other dispute resolution procedure available under this Agreement in Section 12.1 or under law.  During the course of negotiations all reasonable requests made by one party to the other party for information, including requests for copies of relevant documents, will be honored.  The specific format for such negotiations will be left to the discretion of the designated negotiating teams but may include the preparation of agreed upon statements of fact or written statements of position furnished to the other party. In order to foster the free exchange of information and points of view to resolve a dispute, the parties shall be free to discuss the dispute frankly in the nature of settlement discussions. The observations or statements of neither party shall be used in evidence against that party in any dispute resolution that may ensue.

 

12.3              Assignment.  Neither party shall assign or transfer this Agreement either voluntarily or by operation of law, in whole or in part, without the prior written consent of the other party, and any attempt to do so will be null and void; provided, however, that either party may assign this Agreement without such consent, to a parent, subsidiary, or Affiliate, or to a successor in interest to its business (whether by merger, acquisition, consolidation, change of control, reorganization or sale of substantially all of its assets).  Notwithstanding the foregoing, IM shall not be able to assign this Agreement to an entity that is a logic foundry competitor to GF without the prior written consent of GF.  Subject to the foregoing sentence, this Agreement will be binding on and inure to the benefit of the parties and their respective successors and permitted assigns.

 

12.4              Drafting.  In interpreting and applying the terms and provisions of this Agreement, the parties agree that no presumption shall exist or be implied against the party that drafted such terms and provisions.

 

12.5              Waiver.  It is agreed that no waiver by either party hereto of any breach or default of any of the covenants or agreements herein set forth shall be deemed a waiver or an expectation of non-enforcement as to any subsequent and/or similar breach or default.

 

12.6              Non-Solicitation.  During the Term of this Agreement neither IM nor GF will individually, or in concert with or through any other person, actively recruit any scientific or technical personnel of the other party.  The foregoing restriction shall not apply to, or be breached by: (i) advertising open positions, participating in job fairs, and conducting comparable activities to recruit skilled or unskilled help from the general public, or responding to individuals contacted through such methods, (ii) responding to unsolicited inquiries about employment opportunities or possibilities from job placement agencies or other agents acting for unidentified principals, or (iii) responding to unsolicited inquiries about employment opportunities from any individual.

 

12.7              Severability.  In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect to the fullest extent permitted by law without said provision, and the parties shall amend the Agreement to the extent feasible to lawfully include the substance of the excluded term to as fully as possible realize the intent of the parties and their commercial bargain.

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

16

 

12.8              Independent Contractors.  The relationship of the parties hereto is that of independent contractors.  Each party shall not be deemed to be an agent, partner, joint venture or legal representative of the other for any purpose as a result of this Agreement or the transactions contemplated thereby.

 

12.9              Press Releases or Public Statements.  Neither party shall issue any press release or otherwise make any public statement regarding the existence or terms and conditions of this Agreement or the business between the parties, nor use the other party’s name in any advertising or promotional materials or publication or public statement of any kind, without such other party’s prior written consent given in such party’s sole and absolute discretion.

 

12.10            Compliance with Law.  In exercising their rights under the license granted hereunder, each party shall fully comply in all material respects with the requirements of any and all applicable laws, regulations, rules and orders of any governmental body having jurisdiction over the exercise of rights under this Agreement.  Without limiting the foregoing, each party agrees to comply with all applicable export and re-export control laws and regulations maintained by the United States governments.

 

12.11            Notices.  All notices, requests and other communications hereunder shall be in writing and shall be hand delivered, or sent by express delivery service with confirmation of receipt, or sent by registered or certified mail, return receipt requested, postage prepaid, or by electronic transmission (with written confirmation copy by registered first-class mail), in each case to the attention of the chief legal officer at the respective address indicated above and when to GF with a copy to Law Department, GLOBALFOUNDRIES, 840 N. McCarthy Boulevard Milpitas, CA  95035 (Facsimile:  (408) 462-4299) (e-mail:  Legal.Notices@globalfoundries.com).  Any such notice shall be deemed to have been given when received.  Either party may change its address by giving the other party written notice, delivered in accordance with this Section.

 

12.12            Force Majeure.  Neither party shall lose any rights hereunder or be liable to the other party for damages or losses (except for payment obligations then owing) on account of failure of performance by the defaulting party if the failure is occasioned by war, strike, fire, earthquake, flood, lockout, embargo, act of terrorism, governmental acts, or any other reason where failure to perform is beyond the reasonable control and not caused by the negligence, intentional conduct or misconduct of the non-performing 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.

 

12.13            Headings; Construction.  The captions to the several Sections hereof are not part of this Agreement, but are included merely for convenience of reference and shall not affect its meaning or interpretation.  As used in this Agreement, the word “including” means “including without limitation.”

 

12.14            Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

 

12.15            Complete Agreement.  This Agreement, together with its Exhibits and their attachments, constitutes the entire agreement, both written and oral, between the parties with respect to the subject matter hereof, and all prior agreements respecting the subject matter hereof, either written or oral, express or implied, shall be abrogated, canceled, and are null and void and of no effect.  No amendment or change hereof or addition hereto shall be effective or binding on either of the parties hereto unless reduced to writing and executed by the respective duly authorized representatives of GF and IM.  The parties further agree that any additional or inconsistent terms and conditions of any purchase order,

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

17

 

invoice or like document issued in connection with this Agreement shall be superseded in full by the terms and conditions of this Agreement and any Exhibit hereunder, and any such additional or inconsistent terms, unless specifically agreed to in writing by the parties at the time, are hereby rejected.

 

12.16            Third Party Beneficiaries.  Except as expressly provided in this Agreement, there are no third party beneficiaries expressly or impliedly intended under this Agreement.

 

In Witness Whereof, the parties hereto have executed this document as the last date set forth below.

 

	
GLOBALFOUNDRIES Inc.
    	
Intermolecular, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Chia Song Hwee
    	
 
    	
By:
    	
/s/   David Lazovsky
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Chia Song Hwee
    	
 
    	
Name:
    	
David   Lazovsky
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Chief Operating Officer
    	
 
    	
Title:
    	
President   & CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
5/27/2011
    	
 
    	
Date:
    	
5/24/2011
    

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

18

 

EXHIBIT A — [*]

 

[*]

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

19

 

EXHIBIT F

[*]

 

[*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

 

20PediatRx Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

INDEPENDENT CONTRACTOR AGREEMENT

This Agreement is dated effective the 1st day of July,
2011.

BETWEEN:

	 	PEDIATRX INC., a Nevada corporation
      having an address 	 
	 	for the conduct of business located at 405
      Trimmer Road, 	 
	 	Suite 200, Califon, NJ, 07830, USA 	 
	 	 	 
	 	(the “Company”) 	 

AND:

	 	CAMERON DURRANT, an individual resident
      of the State of New 	 
	 	Jersey whose business address is P.O. Box 423,
      Califon, NJ 	 
	 	07830 	 
	 	 	 
	 	(the “Contractor”) 	 

WHEREAS:

A.      The Company is interested in
further developing its capability and execution in the pharmaceutical
industry.

B.      The Contractor has
considerable expertise in executive management, and corporate and strategic
business development in the pharmaceutical industry.

C.      The Company wishes to obtain
and the Contractor wishes to provide certain services to the Company on the
terms and conditions contained in this Agreement.

NOW THEREFORE in consideration of the premises, the
mutual covenants and agreements hereinafter set forth and for other good and
valuable consideration, the parties hereby covenant and agree as follows:

	1. 	
      DEFINITIONS. For the purposes of this Agreement
      (including the Schedules hereto), the following terms will have the
      following meanings:

	 	 
	1.1. 	
      “Board” means the Board of Directors of the
    Company;

	 	 
	1.2. 	
      “Cause” means:

	 	(a) 	
      failure of the Contractor to observe or perform any of
      the material covenants and obligations imposed by this
Agreement;

	 	 	 
	 	(b) 	
      failure of the Contractor to observe any of the covenants
      and obligations hereunder that are not material, if the Contractor and/or
      Durrant does not remedy such failure within a reasonable time after
      receiving written notice thereof;

	 	 	 
	 	(c) 	
      fraud, dishonesty, gross negligence or willful
      malfeasance in connection with the Contractor’s performance of the
      Consulting Services; or

Initials: ______

Page 2 of 12

	 	(d) 	
      the conviction of the Contractor with respect to the
      commission of a crime involving moral
turpitude;

	1.3. 	
      “Change of Control Event”
means:

	 	1.3.1. 	
      the acquisition, after the date of this Agreement and
      excluding any acquisitions from the Company, by any one individual, entity
      or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
      Securities and Exchange Act of 1934), of beneficial ownership of
      40% or more of either the then outstanding shares of common stock of the
      Company or the combined voting power of the then outstanding voting
      securities of the Company entitled to vote generally in the election of
      directors, which causes a change in the control of the board of directors
      of the Company resulting from the election by the shareholders of the
      Company of less than a majority of the persons nominated for election by
      management of the Company;

	 	 	 
	 	1.3.2. 	
      the approval by the stockholders of the Company of a
      reorganization, merger or consolidation of the Company in which the
      individuals and entities who were the respective beneficial owners of the
      common stock and voting securities of the Company immediately prior to
      such reorganization, merger or consolidation do not, following such
      reorganization, merger or consolidation, beneficially own, directly or
      indirectly, more than 50% of, respectively, the then outstanding shares of
      common stock and the combined voting power of the then outstanding voting
      securities entitled to vote generally in the election of directors, as the
      case may be, of the corporation resulting from such reorganization, merger
      or consolidation; or

	 	 	 
	 	1.3.3. 	
      a liquidation or dissolution of the Company or the sale
      or other disposition of all or substantially all of the assets of the
      Company;

An event shall not constitute a Change
of Control if:

	 	1.3.4. 	
      it is a merger with a parent or subsidiary, or its sole
      purpose is to change the jurisdiction of the Company’s organization or to
      create a holding company, partnership or trust that will be owned in
      substantially the same proportions by the persons who held the Company’s
      securities immediately before such event or by the persons who held
      Striker’s securities immediately before such event; or

	 	 	 
	 	1.3.5. 	
      the Contractor is part of a purchasing group that
      consummates the Change of Control;

	1.4. 	
      “Common Shares” means shares of common stock, par value
      $0.001, of the Company;

	 	 
	1.5. 	
      “Confidential Information” means information, whether or
      not originated by the Contractor, that relates to the business or affairs
      of the Company, its’ affiliates, clients or suppliers and is confidential
      or proprietary to, about or created by the Company, its’ affiliates,
      clients, or suppliers. Confidential Information
includes, but is not limited to, the following
types of confidential information and other proprietary information of a similar
nature (whether or not reduced to writing or designated or marked as
“Confidential”):

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Page 3 of 12

	 	1.5.1. 	
      information relating to strategies, research,
      communications, business plans, and financial data of the Company and any
      information of the Company which is not publicly available;

	 	 	 
	 	1.5.2. 	
      work product resulting from or related to work or
      projects performed for or to be performed for the Company or its’
      affiliates, including but not limited to, the methods, processes,
      procedures, analysis, techniques and audits used in connection
      therewith;

	 	 	 
	 	1.5.3. 	
      any intellectual property contributed to the Company, and
      any other technical and business information of the Company, its
      subsidiaries and affiliates which is of a confidential, trade secret
      and/or proprietary character;

	 	 	 
	 	1.5.4. 	
      internal Company personnel and financial information,
      supplier names and other supplier information, purchasing and internal
      cost information, internal services and operational manuals, and the
      manner and method of conducting the Company’s business;

	 	 	 
	 	1.5.5. 	
      marketing and development plans, price and cost data,
      price and fee amounts, pricing and billing policies, quoting procedures,
      marketing techniques and methods of obtaining business, forecasts and
      forecast assumptions and volumes, current and prospective client lists,
      and future plans and potential strategies of the Company that have been or
      are being discussed; and

	 	 	 
	 	1.5.6. 	
      all information that becomes known to the Contractor as a
      result of this Agreement or the services performed hereunder that the
      Contractor, acting reasonably, believes is confidential information or
      that the Company takes measures to protect.

Confidential Information does not include:

	 	1.5.7. 	
      the general skills and experience gained by the
      Contractor’s provision of the Consulting Services to the Company that the
      Contractor could reasonably have been expected to acquire in similar
      retainers or engagements with other companies;

	 	 	 
	 	1.5.8. 	
      information publicly known without breach of this
      Agreement or similar agreements;

	 	 	 
	 	1.5.9. 	
      information, the disclosure of which by the Contractor is
      required to be made by any law, regulation or governmental authority or
      legal process of discovery (to the extent of the requirement), provided
      that before disclosure is made, notice of the requirement is provided to
      the Company, and to the extent reasonably possible in
the circumstances, the Company is afforded an opportunity to
dispute the requirement; or 

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Page 4 of 12

	 	1.5.10. 	
      information known to the Contractor at the date of this
      Agreement.

	1.6. 	
      “Consulting Effective Date” means the date of this
      Agreement as shown on the first page hereof;

	 	 
	1.7. 	
      “Consulting Fee” means the sum of U.S. $250,000 per
      annum;

	 	 
	1.8. 	
      “Consulting Services” means the services and
      responsibilities set out at Schedule “A” hereto as well as such other
      duties and responsibilities as may be reasonably required from
      time-to-time either in respect of the foregoing or otherwise by the Board
      with respect to the Company and, if requested by the Company, to any and
      all of its subsidiaries from time to time;

	 	 
	1.9. 	
      “Consulting Termination Date” means the second
      anniversary of the Consulting Effective Date unless otherwise
      specified;

	 	 
	1.10. 	
      “Directors” means the Directors of the Company, and
      “Director” means any one of them;

	 	 
	2. 	
      SERVICES TO BE PROVIDED

	 	 
	2.1. 	
      Effective on the Consulting Effective Date, the
      Contractor will provide the Consulting Services to the Company and
      will:

	 	2.1.1. 	
      devote sufficient working time, attention, ability and
      expertise to successfully provide the Consulting Services to the Company
      in a timely manner; and

	 	 	 
	 	2.1.2. 	
      well and faithfully serve the Company and use its best
      efforts to promote the best interests of the
Company

	2.2. 	
      The Contractor will report directly to the Board and will
      keep the Board informed of all matters concerning the Consulting Services
      as requested by the Board from time to time.

	 	 
	3. 	
      REMUNERATION, EXPENSES AND INDEMNITY

	 	 
	3.1. 	
      Remuneration – Consulting
Fees

	 	3.1.1. 	
      Subject to Paragraphs 3.1.2 and Section 4, below, from
      the Consulting Effective Date to the Consulting Termination Date, the
      Company will pay the Contractor the Consulting Fee. The Board, as it may
      determine from time to time in its sole discretion, may grant the
      Contractor an increase in the Consulting Fee.

	 	 	 
	 	3.1.2. 	
      The remuneration referred to in Paragraph 3.1.1 will be
      payable in equal monthly instalments paid over the course of the term, and
      does not include taxes which may be applicable. To the extent that
    the Contractor is required to remit tax payments, the Contractor
will show the applicable tax amounts as separate line items on the Contractor’s
invoice for services and provide the Company with the Contractor’s tax
registrant number.

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Page 5 of 12

	3.2. 	
      Expenses

	 	 	 
		3.2.1. 	
      The Contractor will be responsible for all costs
      associated with the performance of the Consulting Services, except as
      noted in Paragraphs 3.2.2 through 3.2.4 below.

	 	 	 
		3.2.2. 	
      Unless otherwise agreed by the parties, the Consulting
      Services will be provided from the Contractor’s office in the state of New
      Jersey.

	 	 	 
		3.2.3. 	
      In the event that the parties agree that the Consulting
      Services will be provided at a location other than that specified in
      Article 3.2.2, the Company will reimburse the Contractor all reasonable
      moving expenses incurred.

	 	 	 
		3.2.4. 	
      The Contractor will be reimbursed by the Company for
      reasonable out of pocket expenses incurred on behalf of the Company in the
      course of providing the Services, as supported by copies of receipts and
      other documentation.

	4. 	
      TERM, RENEWAL AND TERMINATION

	 	 
	4.1. 	
      Term

	 	 
		
      This Agreement will commence on the Consulting Effective
      Date, and, unless otherwise terminated under this Section 4, will
      terminate on the Consulting Termination Date.

	 	 
	4.2. 	
      Termination

	 	4.2.1. 	
      Notwithstanding Paragraph 4.1, this Agreement will be
      terminated:

	 	 	 	 
			(a) 	
      without Cause by the Company, upon thirty (30) days’
      written notice from the Company to the Contractor;

	 	 	 	 
			(b) 	
      without Cause by the Contractor, upon thirty (30) days’
      written notice from the Contractor to the Company; or

	 	 	 	 
			(c) 	
      with Cause by the Contractor or the Company, immediately
      upon one party giving notice in writing to the other party, which notice
      must state the nature and substance of the Cause.

	 	 	 	 
	 	4.2.2. 	
      Upon termination of this Agreement for any
  reason:

	 	 	 	 
			(a) 	
      the Company must immediately pay to the Contractor all
      accrued and unpaid portions of the Consulting Fee due up to the date
    of termination as well as any Expenses properly incurred
  prior to the date of termination;

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Page 6 of 12

	 	(b) 	
      the Contractor must, upon receipt of all sums due and
      owing, promptly deliver the following in accordance with the directions of
      the Company:

	 	 	 	 
	 		(i) 	
      a final accounting, reflecting the balance of expenses
      incurred on behalf of the Company as of the date of termination;

	 	 	 	 
	 		(ii) 	
      all documents pertaining to the Company or this
      Agreement, including but not limited to all books of account,
      correspondence and contracts; and

	 	 	 	 
	 		(iii) 	
      all equipment and any other property belonging to the
      Company.

	 	4.2.3. 	
      If the Contractor’s engagement with the Company, or with
      the surviving entity, is terminated within six (6) months following a
      Change of Control Event by the Company or by the surviving entity for any
      reason other than for Cause, or if the Company fails to provide the
      Contractor with an equivalent engagement following the Change of Control
      Event, then the Company shall pay to the Contractor a lump sum in an
      amount equal to 150% of the amount calculated by multiplying one twelfth
      of the Consulting Fee times six.

	 	 	 	 
	 		(a) 	
      If the Executive is terminated pursuant to this section
      4.2.3 any Stock Options granted to the Executive which have not vested
      shall vest immediately and be immediately exercisable subject to the terms
      of the applicable stock option plan.

	5. 	
      INDEPENDENT CONTRACTOR RELATIONSHIP

	 	 	 
	5.1. 	
      It is expressly agreed that the Contractor is acting as
      an independent contractor in performing the Consulting Services under this
      Agreement.

	 	 	 
	5.2. 	
      Although the Contractor will be available to the Company
      50% of his working hours, the Contractor need only devote such portion of
      his time to the provision of the Consulting Services as is necessary to
      complete the Consulting Services.

	 	 	 
	5.3. 	
      The Contractor is not precluded from acting in any other
      capacity for any other person, firm or company provided that it does not,
      in the reasonable opinion of the Board, conflict with the Contractor’s
      duties to the Company while providing the Consulting Services.

	 	 	 
	5.4. 	
      The Contractor represents and warrants to the Company
      that:

	 	 	 
		5.4.1. 	
      the Contractor has the right to perform the Consulting
      Services without violation of its obligations to
others;

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Page 7 of 12

	 	5.4.2. 	
      the Contractor is not bound by any agreement or
      obligation to any other party that will conflict with its obligations as a
      Contractor of the Company; and

	 	 	 
	 	5.4.3. 	
      all advice, information, and documents provided by the
      Contractor to the Company in the course of providing the Consulting
      Services may be used fully and freely by the Company, unless the
      Contractor otherwise advises the Company in writing at the time of
      communication of such information (e.g. information provided by the
      Contractor on a confidential or non- attribution
basis).

	5.5. 	
      The remuneration set out at Section 3 herein will be the
      whole of the compensation to the Contractor for providing the Consulting
      Services. For avoidance of doubt, the Company will not pay any
      contribution to any pension plan, employment insurance, or federal, state
      or provincial withholding taxes, or provide any other contributions or
      benefits, or similar amounts under any federal, provincial or state laws,
      which might be expected in an employer-employee relationship, as
      compensation for the Consulting Services.

	 	 
	5.6. 	
      The Contractor is solely responsible for the Contractor’s
      registration and payment of assessments for coverage with any workmen’s
      compensation program or similar requirements under federal, provincial or
      state laws of other jurisdictions, while the Contractor is providing the
      Consulting Services. If requested by the Company, the Contractor will
      provide proof of coverage.

	 	 
	5.7. 	
      The Contractor hereby indemnifies the Company against,
      and agrees to hold it harmless from all losses, claims, actions, damages,
      charges, taxes, penalties, assessments or demands (including reasonable
      legal fees and expenses) which may be made by the , the Internal Revenue
      Service, Employment Insurance Plan, , the Workers Compensation Plan, or
      related plans or organizations, or similar bodies or plans under federal,
      provincial or state laws in other jurisdictions, requiring the Company to
      pay an amount under the applicable statutes and regulations in relation to
      any Consulting Services provided to the Company pursuant to this
      Agreement. This paragraph will survive termination of this
    Agreement.

	 	 
	6. 	
      CONFIDENTIAL INFORMATION

	 	 
	6.1. 	
      All Confidential Information, whether it is developed by
      the Contractor during its consulting retainer or by others employed or
      engaged by or associated with the Company or its affiliates or clients, is
      the exclusive and confidential property of the Company or its affiliates
      or clients, as the case may be, and will at all times be regarded, treated
      and protected as such, as provided in this Agreement.

	 	 
	6.2. 	
      As a consequence of the acquisition of Confidential
      Information, the Contractor will occupy a position of trust and confidence
      with respect to the affairs and business of the Company. In view of the
      foregoing, it is reasonable and necessary for the Contractor to make the
      following covenants regarding its conduct during and subsequent to the
      Contractor’s retainer by the Company:

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Page 8 of 12

	 	6.2.1. 	
      At all times during and for a period of three years
      subsequent to the Contractor’s retainer with the Company, the Contractor
      will not disclose Confidential Information to any person other than as
      necessary in carrying out the Consulting Services, or as may be required
      by applicable law or legal process of discovery, without first obtaining
      the Company’s consent, and the Contractor will take all reasonable
      precautions to prevent inadvertent disclosure of any Confidential
      Information. This prohibition includes, but is not limited to, disclosing
      or confirming the fact that any similarity exists between the Confidential
      Information and any other information.

	 	 	 
	 	6.2.2. 	
      At all times during and for a period of three years
      subsequent to the Contractor’s retainer with the Company, the Contractor
      will not use, copy, transfer or destroy any Confidential Information other
      than as necessary in carrying out the Consulting Services, or as may be
      required by applicable law or process of discovery, without first
      obtaining the Company’s consent and the Contractor will take all
      reasonable precautions to prevent inadvertent use, copying, transfer or
      destruction of any Confidential Information.

	 	 	 
	 	6.2.3. 	
      Within ten (10) business days after the termination of
      the Contractor’s retainer for any reason, the Contractor will promptly
      deliver to the Company all property of or belonging to or administered by
      the Company in its custody, including without limitation all Confidential
      Information that is embodied in any form, whether in hard copy or on
      electronic media.

	 	 	 
	 	6.2.4. 	
      The provisions of this Section 6 shall survive the
      expiration or earlier termination of this
Agreement.

	6.3. 	
      Consent to Enforcement. The Contractor confirms
      that all restrictions in this Section 6 are reasonable and valid, and any
      defences to the strict enforcement thereof by the Company are waived by
      the Contractor. Without limiting the generality of the foregoing, the
      Contractor hereby consents to an injunction being granted by a court of
      competent jurisdiction in the event that the Contractor is in breach of
      any of the provisions stipulated in this Section 6. The Contractor hereby
      expressly acknowledges and agrees that injunctive relief is an appropriate
      and fair remedy in the event of a breach of any of the said
    provisions.

	 	 
	6.4. 	
      The Contractor’s obligations under this Section 6 will
      remain in effect in accordance with their terms and continue in full force
      and effect despite any breach, repudiation, alleged breach or repudiation,
      or termination of this Agreement. Without limiting the foregoing, the
      Contractor agrees that at all times during and subsequent to the provision
      of services to the Company, the Contractor will not use or take advantage
      of the Confidential Information for the purpose of providing similar
      management and technical services for any other company.

	 	 
	7. 	
      GENERAL PROVISIONS

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Page 9 of 12

	7.1. 	
      Assignability. This Agreement is not assignable by
      either party and the Consulting Services must be provided by the
      Contractor.

	 	 
	7.2. 	
      Authorization. The Company represents and warrants
      that it is fully authorized and empowered to enter into this Agreement and
      perform its obligations hereunder, and that performance of this Agreement
      will not violate any agreement between the Company and any other person,
      firm or organization nor breach any provisions of its constating documents
      or governing legislation.

	 	 
	7.3 	
      No Other Agreement. This Agreement and the
      Schedules hereto cancel and supersede any existing agreement or other
      arrangement between the Company and the Contractor, other than any prior
      agreements for the purchase of securities in the Company.

	 	 
	7.3. 	
      Amendment or Waiver.

	 	7.3.1. 	
      This Agreement may not be amended unless such amendment
      is agreed to in writing and signed by the Contractor and an authorized
      officer of the Company.

	 	 	 
	 	7.3.2. 	
      No waiver by either party hereto of any breach by the
      other party hereto of any condition or provision contained in this
      Agreement to be performed by such other party will be deemed a waiver of
      any similar or dissimilar condition or provision. Any waiver must be in
      writing and signed by the Contractor or an authorized officer of the
      Company, as the case may be.

	7.4. 	
      Compliance with Policies and Laws. The Contractor
      will abide by all the Company’s policies and procedures, including without
      limitation, the Company’s code of conduct. In addition, the Contractor
      will abide by all laws applicable to the Company, in each jurisdiction
      that the Company does business, including without limitation applicable
      securities laws, rules and regulations and the rules of any stock exchange
      or market upon which the Common Shares are listed or quoted.

	 	 
	7.5. 	
      Governing Law. This Agreement will be construed
      and interpreted in accordance with the laws of the State of New Jersey
      applicable therein, and will be treated in all respects as a New Jersey
      contract. The parties irrevocably attorn to the exclusive jurisdiction of
      the courts of the State of New Jersey with respect to any legal
      proceedings arising under this Agreement.

	 	 
	7.6. 	
      Notices. Any notice in writing required or
      permitted to be given hereunder must be given by registered mail, postage
      prepaid, mailed to the following addresses, or may be delivered by courier
      or personally.

Initials:________

Page 10 of 12

	 	7.6.1. 	
      in the case of the Company: 

	 	 	PediatRx Inc.
	 		
      405, Trimmer Road, Suite 200, 

	 	 	Califon, NJ
	 		
      07830 

	 	 	Fax : n/a
	 		
      Attention: Cameron Durrant

	 	 	 
	 		
      with a copy to:

        Joseph Carusone, 

        Chairman of the Board
        

      Suite 901 – 360 Bay Street

      Toronto, ON

      Canada M5H 2V6 

      Fax: (416) 352-5239

	 	 	 
	 	7.6.2. 	
      in the case of the Contractor: 

        Dr. Cameron Durrant

        PO Box
      423, 

      Califon, NJ, 07830

      USA

		
      Any notice delivered by courier or personally is
      effective on the actual date of delivery. Any notice delivered by mail as
      aforesaid is deemed to have been received by the person to whom it is
      addressed on the 4th business day after and excluding the date of mailing.
      Either party may change its address for giving of notices hereunder by
      notice in writing to the other party.

	 	 
	7.7. 	
      Independent Legal Advice. The Company has obtained
      legal advice concerning this Agreement and has requested that the
      Contractor obtain independent legal advice with respect to this Agreement.
      The Contractor hereby represent and warrants to the Company that it has
      been advised to obtain independent legal advice, and that, prior to the
      execution of this Agreement, it has obtained independent legal advice or
      has, in their discretion, knowingly and willingly elected not to do
    so

	 	 
	7.8. 	
      Severability. If any provision contained herein is
      determined to be void or unenforceable for any reason, in whole or in
      part, it will not be deemed to affect or impair the validity of any other
      provision contained herein and the remaining provisions will remain in
      full force and effect to the fullest extent permissible by
  law.

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Page 11 of 12

	7.9. 	
      Currency. Except as expressly provided in this
      Agreement, all amounts in this Agreement are stated and will be paid in
      U.S. currency.

	 	 	 
	7.10. 	
      Further Assurances. Each of the Contractor and the
      Company will do, execute and deliver, or will cause to be done, executed
      and delivered, all such further acts, documents and things as the
      Contractor or the Company may reasonably require for the purposes of
      giving effect to this Agreement.

	 	 	 
	7.11. 	
      Counterparts/Facsimile Execution. This Agreement
      may be executed in several counterparts and each counterpart will together
      constitute one original document.

	 	 	 
	7.12. 	
      Parties’ Acknowledgement. The parties hereto
      hereby acknowledge that:

	 	 	 
		7.12.1. 	
      sufficient time was provided to review this Agreement
      thoroughly;

	 	 	 
		7.12.2. 	
      the terms of this Agreement and the obligations hereunder
      have been read and are understood; and

	 	 	 
		7.12.3. 	
      a copy of this Agreement has been received by each of the
      parties.

IN WITNESS WHEREOF the parties have executed this
Agreement as of the date first above written.

PEDIATRX INC.

Per: 
______________________
        Joseph
Carusone, Director

CAMERON DURRANT

_________________________ 
CAMERON DURRANT

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Page 12 of 12

SCHEDULE A

List of Services, Duties and Responsibilities

The Contractor has responsibility for the activities described
below:

	 	a) 	
      Oversee the corporate affairs of the Company,

	 	 	 
	 	b) 	
      Provide executive management and strategic advice to the
      board of directors,

	 	 	 
	 	c) 	
      Assist in the hiring of professional staff, qualified
      contractors and employees,

	 	 	 
	 	d) 	
      Comply with applicable laws and regulations, and ensure
      similar corporate compliance,

	 	 	 
	 	e) 	
      Assist in promoting the Company’s reputation,

	 	 	 
	 	f) 	
      Actively participate in the production of corporate
      articles including, but not limited to a business plan, operating budgets,
      financial statements, and minutes to meetings, and;

	 	 	 
	 	g) 	
      Increase the Company’s revenue and
  earnings.

Initials:________

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