Document:

Exhibit 10.2

 

Confidential Materials omitted and filed
separately with the

Securities and Exchange Commission.  Asterisks denote omissions.

 

 

2003

 

 

INVESTMENT
AGREEMENT

 

 

between

 

GENAISSANCE
PHARMACEUTICALS, INC.

 

PRELUDE
TRUST PLC

 

ABBEY
NATIONAL TREASURY SERVICES OVERSEAS HOLDINGS

 

and

 

SCIONA LIMITED

 

 

TABLE
OF CONTENTS

 

	
  1

  	
  DEFINITIONS

  	
   

  
	
  2

  	
  INTERPRETATION

  	
   

  
	
  3

  	
  COMPLETION

  	
   

  
	
  4

  	
  INFORMATION RIGHTS

  	
   

  
	
  5

  	
  BUSINESS
  PLAN

  	
   

  
	
  6

  	
  EXECUTIVE COMMITTEE

  	
   

  
	
  7

  	
  WARRANTIES

  	
   

  
	
  8

  	
  RIGHT OF FIRST REFUSAL

  	
   

  
	
  9

  	
  ASSIGNMENT

  	
   

  
	
  10

  	
  NO
  PARTNERSHIP

  	
   

  
	
  11

  	
  SEVERAL OBLIGATIONS

  	
   

  
	
  12

  	
  FURTHER ASSURANCES

  	
   

  
	
  13

  	
  VARIATION OF AGREEMENT

  	
   

  
	
  14

  	
  INVALIDITY

  	
   

  
	
  15

  	
  EXCLUSION OF THIRD PARTY RIGHTS

  	
   

  
	
  16

  	
  COUNTERPARTS

  	
   

  
	
  17

  	
  NOTICES

  	
   

  
	
  18

  	
  ENTIRE AGREEMENT

  	
   

  
	
  19

  	
  APPLICABLE
  LAW

  	
   

  
	
  20

  	
  JURISDICTION

  	
   

  
	
  21

  	
  AGENT FOR SERVICE

  	
   

  
	
  SCHEDULE 1
  WARRANTIES

  	
   

  

 

 

THIS AGREEMENT
is made on                               2003
between the following parties:

 

(1)                                  SCIONA LIMITED (registered number
4055554) whose registered office is at 79 George Street Ryde Isle of Wight PO33
2JF, further particulars of which are set out in Part 1 of Schedule 1 (the
“Company”);

 

(2)                                  GENAISSANCE PHARMACEUTICALS, INC. of
Five Science Park, New Haven, CT 06511, USA (“Genaissance”);

 

(3)                                  PRELUDE TRUST PLC (registered number
3285603) whose registered office is at Sycamore Studios, New Road, Over,
Cambridge CB4 5PJ (“Prelude”); and

 

(4)                                  ABBEY NATIONAL TREASURY SERVICES OVERSEAS HOLDINGS of 28 Dorset Square, London NW1 6QG (“Abbey”).

 

WHEREAS

 

(A)                                The parties to this Agreement (other than Genaissance) are party to
a subscription and shareholders’ agreement made on 25 February 2002
between (1) the Company, (2) the Executives (as defined therein) and (3) the
Investors (as defined therein) and (4) other shareholders of the Company (as
amended pursuant to a deed of amendment dated the same date as this Agreement)
(the “Subscription
Agreement”).

 

(B)                                Genaissance wishes to acquire shares in the Company in accordance
with the terms of this Agreement.

 

(C)                                The parties to this Agreement wish to agree certain provisions
governing the conduct of the Company in accordance with the terms of this
Agreement.

 

IT
IS AGREED as follows

 

1                                         DEFINITIONS

 

1.1                               Unless otherwise defined in this Agreement, words and expressions
used in this Agreement shall have the meaning ascribed to them in the
Subscription Agreement.

 

1.2                               In this Agreement each of the following words and expressions shall,
unless the context otherwise requires, have the meaning set opposite the
relevant word or expression:

 

	
  “Audited Accounts”

  	
   

  	
  the audited accounts of the Company for the financial year ending 31
  August 2002 (a copy of which are provided at section 1 to the bundle of documents attached to the
  Disclosure Letter);

  
	
   

  	
   

  	
   

  
	
  “Completion”

  	
   

  	
  completion of the subscription for Ordinary Shares in accordance with
  Clause 3.3;

  
	
   

  	
   

  	
   

  
	
  “Conditions”

  	
   

  	
  the
  conditions set out in Clause 3.1;

  
	
   

  	
   

  	
   

  
	
  “Disclosure Letter”

  	
   

  	
  the letter
  from the Company to Genaissance dated the date hereof and making certain
  disclosures

  

 

1

 

	
   

  	
   

  	
  against the
  Warranties;

  
	
   

  	
   

  	
   

  
	
  “Fully Diluted Share Capital”

  	
   

  	
  all issued
  shares in the capital of the Company plus all unissued shares in the capital
  of the Company allocated to the employee option pool of the Company from time
  to time (whether or not options have been granted over such shares and in any
  event being not less than 50,408 Ordinary Shares) plus 44,444 A Ordinary
  Shares which may be issued in connection with the acquisition of Genostic
  Pharma Limited by the Company (whether or not such deferred consideration
  shares are actually issued);

  
	
   

  	
   

  	
   

  
	
  “Genostic Pharma Agreement”

  	
   

  	
  the share
  exchange agreement dated 22 February 2002 between the Company and the
  then shareholders of Genostic Pharma Limited;

  
	
   

  	
   

  	
   

  
	
  “Licence Agreement”

  	
   

  	
  the consumer
  genomics agreement entered into on the date hereof between the Company and
  Genaissance;

  
	
   

  	
   

  	
   

  
	
  “Management Accounts”

  	
   

  	
  the
  unaudited management accounts of the Company for the month August 2003
  (a copy of which are provided at section 2 to the bundle of documents
  attached to the Disclosure Letter);

  
	
   

  	
   

  	
   

  
	
  “New Articles”

  	
   

  	
  the articles
  of association of the Company from time to time and as amended by the
  Resolutions;

  
	
   

  	
   

  	
   

  
	
  “Party”

  	
   

  	
  a party to
  this Agreement, and “Parties” shall be construed accordingly;

  
	
   

  	
   

  	
   

  
	
  “Relevant Directors”

  	
   

  	
  the Investor
  Directors and the Director appointed by Genaissance (if any) pursuant to
  article 11.5 of the New Articles;

  
	
   

  	
   

  	
   

  
	
  “Resolutions”

  	
   

  	
  the
  resolutions of the Company, inter alia, (1) 
  increasing the share capital of the Company from £38,100 to £52,699 by
  the creation of 145,690 Ordinary Shares (2) authorising and empowering the
  Directors to allot Ordinary Shares in accordance with the terms of this
  Agreement in the aggregate nominal amount of £14,569 and disapplying
  pre-emption rights in respect of such allotment and (3) making certain
  amendments to the articles of association of the Company, in the Agreed Form;

  
	
   

  	
   

  	
   

  
	
  “Warranties”

  	
   

  	
  the
  warranties given pursuant to Clause 7 and Schedule 1; and

  
	
   

  	
   

  	
   

  
	
  “£”

  	
   

  	
  the lawful
  currency of the United Kingdom of Great Britain.

  

 

2

 

2                                         INTERPRETATION

 

2.1                               References in this Agreement to any statute or statutory provision
shall be deemed to include references to any statute or statutory provision
which amends, extends, consolidates or replaces the same (other than any such
statute or statutory provision with retrospective effect to the extent that it
is retrospective) and except to the extent that any amendment or modification
enacted after the date of this Agreement would extend or increase the liability
of any party to any other party under this Agreement and, save as aforesaid, to
any order, regulation, instrument or other subordinate legislation made
thereunder.

 

2.2                               References to “Clauses” are to clauses to this Agreement.

 

2.3                               The headings in this Agreement and the index to this Agreement are
for convenience only and shall not affect its construction or interpretation.

 

2.4                               Wherever a document is referred to as being “in the Agreed Terms” or “in the
Agreed Form” it shall be in the form agreed between the Parties and
initialled for and on behalf of each of them for the purposes of identification
only.

 

2.5                               Unless the context otherwise requires:

 

2.5.1                                      words denoting the singular shall include the plural and vice versa;

 

2.5.2                                      words denoting a gender shall include all genders; and

 

2.5.3                                      references to persons shall include corporations and firms.

 

2.6                               General words shall not be given a restrictive meaning by reason of
their being preceded or followed by words indicating a particular class or
examples of acts, matters or things.

 

3                                         COMPLETION 

 

3.1                               Conditions

 

Completion is
conditional on:

 

3.1.1                                      the passing of the Resolutions in general meeting (or by way of
written resolution), without amendment, together with such separate class
resolutions as may be necessary to give effect to the same;

 

3.1.2                                      the Company and Genaissance having entered into a consumer genomics
agreement in the Agreed Terms (the “Consumer Genomics Agreement”);

 

3.1.3                                      the Board resolving that Kevin Rakin be appointed as a Director nominated by
Genaissance, subject to Completion;

 

3.1.4                                      the Board (including the Investor Directors) resolving to establish
the Executive Committee (as defined in Clause 6.1) in accordance with Clause 6,
subject to Completion;

 

3

 

3.1.5                                      Genaissance having executed a deed of adherence in the Agreed Form
to the Subscription Agreement in accordance with the terms of the Subscription
Agreement; and

 

3.1.6                                      Paul Squires and Manuel Sanches-Felix each having delivered signed
stock transfer forms and share certificates (or indemnities in respect thereof
in a form acceptable to the Company in the event that such certificates have
been lost or destroyed) to the Company (Genaissance having paid the stamp duty
due thereon (being 0.5% of the consideration paid)) in respect of the Ordinary
Shares to be transferred by Paul Squires and Manuel Sanches-Felix to
Genaissance pursuant to Clause 3.3.2 and each such person having confirmed in
writing that such Ordinary Shares will be so transferred with full legal and
beneficial title free from all encumbrances, liens, charges and other third
party interests (such stock transfer forms and confirmations to be dated and
given effect at Completion).

 

3.2                               The Company and Genaissance shall use their respective reasonable
endeavours to ensure the satisfaction of each of the Conditions.

 

3.3                               Completion

 

3.3.1                                      Completion shall take place immediately following the satisfaction
of the Conditions, whereupon:

 

(a)                         Genaissance shall subscribe in cash for 145,690 new Ordinary Shares
for £[**] (Genaissance being deemed to have delivered to the Company an
application for such shares in such amounts) and shall pay in cleared funds the
subscription moneys due from it to the Company; and

 

(b)                         the Company shall allot and issue 145,690 Ordinary Shares credited
as fully paid together with share certificates in respect of such Ordinary
Shares issued to Genaissance (which Ordinary Shares shall on issue have the
rights set out in the New Articles the Company and rank pari passu with all
other Ordinary Shares comprised in the capital of the Company).

 

3.3.2                                      At Completion the Company shall register the following transfers of
Ordinary Shares to Genaissance:

 

	
  Transferor

  	
   

  	
  Transferee

  	
   

  	
  Number of

  Ordinary

  Shares

  	
   

  	
  Consideration

  
	
  Paul Squires

  	
   

  	
  Genaissance

  	
   

  	
  1,600

  	
   

  	
  £

  	
  [**]

  
	
  Manuel
  Sanches-Felix

  	
   

  	
  Genaissance

  	
   

  	
  5,000

  	
   

  	
  £

  	
  [**]

  

 

4

 

4                                         INFORMATION RIGHTS

 

4.1                               If and for so long as Genaissance holds not less than 5% of the
Fully Diluted Share Capital, then the Company shall provide Genaissance with
the following information:

 

(a)                        within [**] days of the end of each [**], monthly management
accounts of the Company containing a balance sheet, profit and loss statement
and cash flow statement together with a commentary on the period in question;
and

 

(b)                        audited accounts of the Company within [**] months of the end of
each financial year of the Company.

 

4.2                               A Director appointed by Genaissance pursuant to article 11.5 of
the New Articles shall be permitted from time to time to disclose to
Genaissance and its professional advisers information concerning the business
and financial affairs of any Group Company. 
Genaissance shall procure that such Director and its professional
advisers shall not to divulge to any other person any trade secret or
information of a confidential nature concerning the business, finance or
affairs of the Company or any Group Company except to the minimum extent
required pursuant to any applicable statutory, regulatory or accounting
requirements at any time whether during the term of or following the
termination (for whatever reason) of this agreement (without limit of time).

 

4.3                               The obligations imposed on Genaissance pursuant to Clause 4.2 of
this Agreement and clause 10.1 of the Subscription Agreement shall continue in
full force and effect notwithstanding the termination or variation of any such
agreement (save to the extent that the Company, by written notice, expressly
releases Genaissance from any such obligation).

 

5                                         BUSINESS PLAN

 

5.1                               If and for so long as Genaissance holds not less than 5% of the
Fully Diluted Share Capital, then, not later than [**] calendar months before
the end of each of its financial years, the Company shall adopt detailed
operating budgets for the Company in a form approved by a majority in number of
the Relevant Directors in respect of the next financial year of the Company.

 

5.2                               The Investors agree that the provisions of paragraph 1.5 of part 1
of schedule 4 of the Subscription Agreement shall not apply if and for so
long as Genaissance holds not less than 5% of the Fully Diluted Share Capital.

 

6                                         EXECUTIVE COMMITTEE

 

6.1                               The Parties agree that, with effect from Completion, the Company
shall establish an executive committee (being a sub-committee of the Board)
(the “Executive
Committee”).

 

6.2                               The Executive Committee shall comprise:

 

6.2.1                                      the Director appointed by Genaissance pursuant to article 11.5
of the New Articles (if and for so long as such person holds office as a
Director, and in 

 

5

 

his absence a Director nominated by the Board
(acting by simple majority vote));

 

6.2.2                                      the chief executive officer of the Company (and, until such time as
such chief executive officer is appointed, Melisse Shaban shall be appointed to
fill such vacancy on the Executive Committee); and

 

6.2.3                                      a further Director nominated by the Board (acting by simple majority
vote), and which person shall initially be Chris Martin.

 

6.3                               Without prejudice to the right of individual members of the
Executive Committee in their capacity as directors, the Executive Committee
shall have the following duties (and no other duties or authorities, save as
approved by the Board in accordance with the Subscription Agreement):

 

6.3.1                                      to advise and assist the management of the Company in devising and
proposing the draft operating budgets to be presented to the Board pursuant to
Clause 5.1;

 

6.3.2                                      to review and monitor the progress of the management of the Company
in implementing any operating budget approved pursuant to Clause 5.1;

 

6.3.3                                      to make recommendations to the Board concerning the appointment of
suitable persons to key management positions in connection with those
operations of the Group (including a chief executive officer and chairman of
the board of the Company, which persons shall have significant relevant
industry experience in the United States and global markets); and

 

6.3.4                                      to report to the Board on the matters referred to at Clauses 6.3.1
to 6.3.3.

 

6.4                               The Executive Committee shall have no authority to:

 

6.4.1                                      adopt any operating plan on behalf of the Company or approve any
operating plan on behalf of the Board; or

 

6.4.2                                      contract with any third party or enter into any agreement or
understanding in the name of the Company with any third party or to bind the
Company in any way whatsoever,

 

in each case, save as expressly authorised by the Board in accordance
with the Subscription Agreement (including, without limitation, the obtaining
of any Investor consent).

 

7                                         WARRANTIES

 

7.1                               The Company warrants to Genaissance in the terms of the Warranties
set out in Schedule 1 as at the date hereof.

 

7.2                               The Warranties are given subject to matters fairly disclosed in the
Disclosure Letter.

 

7.3                               Each of the Warranties shall be separate and independent and, save
as expressly provided to the contrary, shall not be limited by reference to any
other Warranty or 

 

6

 

any other provision in this agreement and so that Genaissance shall
have a separate claim and right of action in respect of every breach of
Warranty.

 

7.4                               In the Warranties the term “so far as the Company is aware” or any
similar or equivalent word shall be construed to mean those matters within the
actual knowledge of the senior management of the Company and those matters
which would be apparent to such senior managers upon carrying our commercially
reasonable inquiries into such matters.

 

7.5                               All claims under the Warranties shall be made in writing to the
Company (specifying particulars of the claim in reasonable detail based on the
information in the possession of the party making the claim) no later than

 

(i)                                    the date [**] months after the date hereof; or

 

(ii)                                if earlier, the date on which the Genaissance ceases to hold shares
in the Company,

 

and any claim
made after such date shall be invalid and of no effect.

 

7.6                               Any claim under the Warranties shall (if it has not been previously
satisfied, settled or withdrawn) be, and be deemed to have been, withdrawn
unless legal proceedings in respect of it have been commenced by both being
issued and served on the Company within 3 months of notification of such claim
(unless otherwise agreed, from time to time, in writing between the parties).

 

7.7                               Save (i) in the case of fraud or wilful non-disclosure on the part
of any of the Company; or (ii) in respect of a claim for a breach of
that Warranty set out at paragraph 13 of Schedule 1:

 

7.7.1                                      no claim or claims shall be made in respect of any breach or
breaches of the Warranties unless and until the aggregate amount of that claim
or those claims, together with all other claims, shall exceed $50,000 but so
that once this aggregate amount has been exceeded Genaissance shall be entitled
to make a claim in respect of the whole of the aggregate amount and not just
the excess over that amount; and

 

7.7.2                                      the liability of the Company for breach of the Warranties (inclusive
of all costs, interest and expenses payable by the Company to Genaissance in
connection with any such claim) shall be limited to $1,000,000 in aggregate.

 

7.8                               The Company shall have no liability whatsoever in respect of any
claim under the Warranties to the extent that the matter giving rise to the
claim is for an amount for which Genaissance has recovered from, or have been
indemnified by, any person (other than the Company) whether under any provision
of applicable law, an insurance policy or otherwise.

 

7.9                               Genaissance acknowledges that, not withstanding any other provision
of this Agreement or the Licence Agreement, its only remedy for breach of the
Warranties shall be to claim damages and, in particular, Genaissance shall have
no right to 

 

7

 

terminate or rescind this Agreement and/or the Subscription Agreement
as a consequence of any breach of the Warranties.

 

7.10                        The Company shall not be liable in respect of any claim brought
under the Warranties to the extent that such claim is attributable to, or such
claim is increased as a result of any change in the nature of the trade or
business of the Company, any legislation not in force at the date hereof or to
any change of law, regulation, directive, requirement or administrative practice
or any change in the basis or, method of calculation of, or increase in the
rates of taxation or practices of any relevant tax authority, which in each
case is not in force as at the date hereof and which takes effect
retrospectively.

 

7.11                        The Company shall not be liable in respect of any claim brought
under the Warranties to the extent that such claim arises, or such claim
otherwise having arisen, is increased as a result of any change made after the
date hereof in any accounting or taxation policies or practice, or the length
of any accounting period, of any person.

 

7.12                        Nothing in this Agreement shall in any way restrict or limit the
general obligation at law of Genaissance to mitigate any loss or damage which
it may suffer in consequence of any fact, matter, event or circumstance giving
rise to a claim under the Warranties.

 

7.13                        A breach of Warranty which is capable of remedy shall not entitle
Genaissance to compensation unless the Company have been given written notice
of such breach and such breach is not remedied within [**] days after the date
on which such notice is served on the Company.

 

8                                         RIGHT OF FIRST REFUSAL

 

8.1                               Notwithstanding anything to the contrary in the Company’s articles
of association, if and for so long as Genaissance holds not less than 5% of the
Fully Diluted Share Capital, the Company and the Investors shall each advise
Genaissance promptly upon such Party receiving notice of an offer or proposal
(the terms of which offer or proposal satisfy the requirements of Clause 8.2)
(a “Purchase
Offer”) to acquire the entire issued share capital of the Company
and/or the whole (or substantially the whole) of the business and assets of the
Company .

 

8.2                               To constitute a Purchase Offer the terms of an offer or proposal to
acquire the entire issued share capital of the Company and/or the whole (or
substantially the whole) of the business and assets of the Company must:

 

8.2.1                                      be reasonably firm, clear and precise – for example, by way of term
sheet;

 

8.2.2                                      identify the shares, business and/or assets the subject of the
offer/proposal; and

 

8.2.3                                      identify the form and amount (or means by which such amount will be
calculated) of consideration payable in respect of the shares, business and/or
assets the subject of the offer/proposal.

 

In the absence
of the Purchase Offer expressly setting out the terms of any representation,
warranty, indemnity or other obligation or liability to be imposed on

 

8

 

the Company
and/or its directors, officers, managers, employees or shareholders, no such
obligation or liability shall be implied.

 

8.3                               Each Investor agrees that it will not (other than with the written
consent of Genaissance):

 

8.3.1                                      accept any Purchase Offer relating to a sale of shares in the
Company; or

 

8.3.2                                      provide any consent sought under the terms of the Subscription
Agreement in relation to the acceptance by the Company of any Purchase Offer
relating to the sale of the whole (or substantially the whole) of the business
and assets of the Company,

 

in each case,
within the period of [**] days from the date on which Genaissance was first
advised of such Purchase Offer pursuant to Clause 8.1.

 

8.4                               The Company agrees that it will not (other than with the written
consent of Genaissance) accept any Purchase Offer relating to a sale of the
whole (or substantially the whole) of the business and assets of the Company
within the period of [**] days from the date on which Genaissance was first
advised of such Purchase Offer pursuant to Clause 8.1.

 

8.5                               During the period of [**] days from the date on which Genaissance
was first advised of a Purchase Offer pursuant to Clause 8.1 Genaissance shall
have the right to match the terms of such Purchase Offer.  Genaissance shall within such [**] day
period confirm to the Company and each other Party (in writing) whether or not
Genaissance elects to match the terms of such Purchase Offer.

 

If Genaissance
fails to notify the Company and each other Party (in writing) within such 30
day period that Genaissance elects to match the terms of the Purchase Offer,
then the rights of Genaissance to match such Purchase Offer pursuant to this
Clause 8 shall lapse and the Company may be free to accept a Purchase Offer
free of the provisions of this Clause 8.

 

If Genaissance
elects to match the terms of such Purchase Offer (by way of written notice
served on the Company and each other Party) within such [**] day period, then:

 

8.5.1                                      the Company and the Investors shall not accept the third party
Purchase Offer; and

 

8.5.2                                      the Company and the Investors shall (subject to the right of
Genaissance to retract such election in accordance with Clause 8.6) have the
right to require that Genaissance conclude the transaction proposed in the
Purchase Offer on the terms set out therein (save that Genaissance is
substituted in place of the relevant third party offeror).

 

8.6                               In the event that the terms of the Purchase Offer are not
sufficiently detailed to enable the proposed transaction to be completed
pursuant to Clause 8.5.2, the Parties shall use best endeavours to agree and
enter into in legally binding documents implementing all such outstanding
terms, which terms shall be fair and reasonable.

 

9

 

8.7                               If the Parties are unable to agree the terms of a transaction
pursuant to Clause 8.6 and have not entered into legally binding documents to
implement such transaction within [**] days from the date on which Genaissance
first gave notice of its election to match the relevant Purchase Offer pursuant
to Clause 8.5, then the provisions of this Clause 8 shall lapse in respect of
such Purchase Offer and all future Purchase Offers

 

9                                         ASSIGNMENT 

 

No Party shall be entitled to assign or otherwise transfer its rights
or obligations under this Agreement (save to any person to whom such Party has
assigned or otherwise transferred rights or obligations under the Subscription
Agreement in accordance with the terms thereof).

 

10                                  NO PARTNERSHIP

 

Nothing in this Agreement shall be deemed to constitute a partnership
between the parties hereto.

 

11                                  SEVERAL OBLIGATIONS

 

All covenants, warranties and other obligations given or entered into
by more than one party herein are given or entered into severally except as
otherwise expressly provided by this Agreement.

 

12                                  FURTHER ASSURANCES

 

The Parties shall (and shall procure that their respective nominees
shall) do and execute and perform all such further deeds, documents,
assurances, acts and things as may reasonably be required to give effect to the
terms of this Agreement.

 

13                                  VARIATION OF AGREEMENT

 

If any Party (or its nominees) ceases to hold shares in the capital of
the Company then as from the date of such cessation this Agreement may be
terminated or varied without reference to (or the need for the signature of any
relevant document by) that Party provided that (for the avoidance of doubt)
such variation shall not give rise to any new or increased liability of that
Party (or its nominees).

 

14                                  INVALIDITY

 

If any of the provisions of this Agreement are or become invalid, illegal
or unenforceable in any respect under any law, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired.

 

15                                  EXCLUSION OF THIRD PARTY RIGHTS

 

A person who is not a party to this Agreement has no rights under the
Contracts (Rights of Third Parties) Act 1999 or otherwise to enforce any term
of this Agreement but this does not affect any right or remedy of a third party
which exists or is available apart from that Act.

 

10

 

16                                  COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same agreement.

 

17                                  NOTICES

 

17.1                        Any notice or other document to be served or given under this
Agreement may be delivered or sent by first class post (or equivalent postal
service in jurisdictions outside England) or facsimile process or electronic
mail (“e-mail”)
to the relevant Party at his or its address appearing on page 1 of this
Agreement or at such other address, facsimile number or e-mail address as that
Party may have notified to the other Parties in accordance with this Clause or
which such Party habitually uses for communications with the other Parties.

 

17.2                        Any notice or document shall be deemed to have been served:

 

17.2.1                               if delivered, at the time of delivery; or

 

17.2.2                               if sent by facsimile transmission, if delivered between 9 a.m. and
5.30 p.m., two hours after transmission or failing that, on the next Business
Day; or

 

17.2.3                               if posted, at 10 a.m. on the second Business Day after the time of
despatch, if despatched before 3 p.m. on any Business Day, and in any other
case at 10 a.m. on the Business Day following the date of despatch.

 

17.3                        In proving service it shall be sufficient to prove that delivery was
made or that either (i) the envelope containing the notice or document was
properly addressed and posted as a prepaid first class letter (or equivalent
postal service in jurisdictions outside England) or (ii) that the facsimile message
was properly addressed and despatched and receipt acknowledged by the recipient
to whom it was addressed or facsimile machine to which it was despatched or
(iii) that the e-mail message was properly addressed and despatched and receipt
acknowledged by the recipient to whom it was addressed or computer server to
which it was despatched.

 

18                                  ENTIRE AGREEMENT

 

18.1                        This Agreement, the New Articles and the Shareholders Agreement
constitutes the whole and only understanding and agreement between the parties
relating to the subject matter of this Agreement.

 

18.2                        Save to the extent repeated in any of the documents referred to in
Clause 18.1, this Agreement, the New Articles and the Shareholders Agreement
supersede and extinguish any prior term sheets, draft agreements, undertakings,
representations, warranties and arrangements of any nature whatsoever, whether
or not in writing, relating to the subject matter of this Agreement.

 

18.3                        Each party acknowledges that in entering into this Agreement it is
not acting in reliance on any agreement, undertaking, representation, warranty,
promise, assurance or arrangement made or given by any other party or any other
person, whether or not in writing, at any time before the execution of this
Agreement which is not expressly set out therein.

 

11

 

18.4                        Nothing in this Clause 18 shall operate to limit or exclude any
liability for fraud or fraudulent misrepresentation.

 

19                                  APPLICABLE LAW

 

This Agreement shall be governed by and construed in accordance with
English law.

 

20                                  JURISDICTION 

 

The courts of England are to have non-exclusive jurisdiction to settle
any dispute arising out of or in connection with this Agreement. Any
proceeding, suit or action arising out of or in connection with this Agreement
(in each case, “Proceedings”) may therefore be brought in the English courts.
Each party agrees that this Clause 20 is irrevocable and that it is for the
benefit of each of the parties to this Agreement. Nothing in this Clause 20 shall
limit the right of any party to take Proceedings against any other party in any
other court or in the courts of more than one jurisdiction at the same time, to
the extent permitted by the law of such other jurisdiction.

 

21                                  AGENT FOR SERVICE

 

21.1                        Genaissance agrees that process by which any Proceedings (as defined
in Clause 20) are begun in England may be served on Genaissance by being
delivered to:

 

Reynolds
Porter Chamberlain

Chichester
House 278/282

High Holborn

London

WC1V 7HA

 

Attention: Tim
Anderson

 

With
copy to Genaissance.

 

21.2                        If the appointment of the person mentioned in Clause 21.1 ceases to
be effective or such person ceases for any reason to act as process agent for
Genaissance, then Genaissance shall immediately appoint a replacement process
agent for the purposes of this Clause and forthwith shall notify each other
Party of the change in accordance with Clause 17 and, failing such appointment
within 10 Business Days thereof, any other Party may appoint a replacement
process agent to accept service of process on behalf of Genaissance by notice
to Genaissance.  This Clause does not
affect the right to serve process in any other manner permitted by law.

 

12

 

SCHEDULE 1

 

WARRANTIES

 

Due incorporation and
capacity

 

1                                         The Company is duly incorporated and validly existing under English
law.

 

2                                         The Company has the requisite power and authority to enter into and
perform its obligations under this Agreement and the Subscription Agreement.

 

3                                         This Agreement and the Subscription Agreement constitute lawful,
valid and binding obligations of the Company in accordance with their
respective terms.

 

Effect of this
Agreement and the Subscription Agreement

 

4                                         The execution and delivery of this Agreement, and the issue of
Shares at Completion pursuant to this Agreement, will not (subject to the
passing of the Resolutions):

 

(a)                                  result in a breach of any provision of the New Articles; or

 

(b)                                  result in a breach of any order, judgement or decree of any court of
competent jurisdiction or governmental agency, or any agreement, to which the
Company is a party or otherwise bound.

 

Commissions

 

5                                         No person is entitled to receive a brokerage, finder’s fee or
commission from the Company in connection with the issue of Shares by the
Company at Completion.

 

Records

 

6                                         The records, statutory books, registers, minute books and books of
account of the Company are duly entered up and maintained in all material
respects in accordance with all legal requirements applicable thereto and so
far as the Company is aware, contain true and accurate records of all matters
required by law to be dealt with therein. 
All such books and all records and documents (including documents of
title) which are its property are in the Company’s possession or under its
control and all accounts, documents and returns have been duly and correctly
delivered or made in all material respects.

 

Accounts

 

7                                         The Audited Accounts:

 

(a)                                  were prepared in accordance with the requirements of the Companies
Act 1985 and 1989;

 

(b)                                  were prepared in accordance with generally accepted accounting
principles and practices in the United Kingdom (which principles and practices
have

 

13

 

were consistently applied by the Company in the preparation of the
Audited Accounts); and

 

(c)                                  give a true and fair view of the assets and liabilities (including
contingent liabilities whether for taxation or otherwise) of the Company and
state of affairs of the Company as at 31 August 2002 respectively and of
the profits and losses of the Company for the financial year of the Company
ending on 31 August 2002.

 

8                                         The Management Accounts show with reasonable accuracy the financial
position of the Company as at 31 August 2003 (including the material debts
and liabilities of the Company at such date) and, save as set out in the
Disclosure Letter, since 31 August 2003 the Company has not incurred any
further debt or liability prior to the Effective Date except for debts and
liabilities that are not material in amount and which debts and liabilities
were incurred in the ordinary course of business.

 

Litigation

 

9                                         The Company is not engaged in or about to initiate any litigation,
whether civil or criminal, arbitration or administrative proceedings and the Company
has not received written notice from any third party threatening any
litigation, arbitration or administrative proceedings against it or that any
litigation, arbitration or administrative proceeding is pending against it.

 

10                                  There is no outstanding judgement, order, decree or award or
decision of a court, tribunal, arbitrator or other governmental or regulatory
authority against, the Company.

 

11                                  So far as the Company is aware, it is not the subject of any
investigation, inquiry or enforcement proceedings or process by any
governmental, administrative or regulatory body nor, so far as the Company is
aware, is there anything that is likely to give rise to any such investigation,
inquiry, proceedings or process.

 

Shares

 

12                                  (a)                                  The fully diluted share capital of the Company immediately prior to
Completion is as set out in document 3 of the bundle of documents attached to
the Disclosure Letter (the “Disclosure Bundle”).

 

(b)                                  None of the Shares of the Company in issue immediately prior to the
date of this Agreement have the benefit of any rights not conferred by law or
expressly provided for in the New Articles, this Agreement or the Subscription
Agreement.

 

(c)                                  The rights attaching to Ordinary Shares comprised in the capital of
the Company, are the same as the rights attaching to A Ordinary Share comprised
in the share capital of the Company, as a class, save that:

 

(A)                               the Ordinary Shares and A Ordinary Shares constitute separate
classes of share (for the purposes of article 5 of the New Articles); and

 

14

 

(B)                               A Ordinary Shares may be converted into Ordinary Shares pursuant to
article 4.2(c) of the New Articles.

 

13                                  The Ordinary Shares to be transferred by Paul Squires and Manuel
Sanches-Felix to Genaissance pursuant to Clause 3.3.2 will be so transferred
with full legal and beneficial title free from all encumbrances, liens, charges
and other third party interests.

 

14                                  Except as set out in the Disclosure Letter (and the documents
contained in the bundle attached thereto, and in particular the New Articles,
the Subscription Agreement and the Genostic Pharma Agreement):

 

(a)                                  no person is entitled or has claimed to be entitled to require the
Company to issue any share or loan capital either now or at any future date,
whether contingently or not;

 

(b)                                  the Company has not received notice of any option, right or
pre-emption, right to acquire, mortgage, charge, pledge, lien, or other form of
security or encumbrance having been granted by any shareholder or other third
party on, over or affecting any of the issued shares in the Company or uncalled
capital of the Company, and the Company has not received notice of any
commitment given to give or create any of the foregoing; and

 

(c)                                  the Company has not granted any option, right or pre-emption, right
to acquire, mortgage, charge, pledge, lien, or other form of security or
encumbrance on, over or affecting any of the issued shares in the Company or
uncalled capital of the Company nor has the Company agreed to give or create
any of the foregoing.

 

15                                  The entire issued share capital of the Company has been validly
issued and allotted and is fully paid or credited as fully paid.

 

Licences, permissions
and consents

 

16                                  So far as the Company is aware, the Company has obtained all
material licences (including, without limitation, in respect of intellectual
property rights), permissions and consents (being licences, permissions and
consents the absence of which would have a material and adverse effect on the
business of the Company) necessary to carry on its business as conducted as at
the date of this Agreement.

 

17                                  No notice has been received by the Company, the subject matter of
which notice is current and outstanding, that any material licence (as referred
to in paragraph 16 above) is, or is reasonably likely to be, suspended,
cancelled, revoked, qualified or not renewed in the ordinary and usual course.

 

18                                  The Company has not been engaged in any litigation alleging that the
operations of the Company infringe the intellectual property rights of any
third party.

 

19                                  So far as the Company is aware, no third party is infringing any
material intellectual property right owned by the Company.

 

15

 

Security interests

 

20                                  No mortgages, charges, liens, encumbrances or other security
interests subsist over the undertaking or any material asset of the Company
save for charges and liens arising in the ordinary course of business.

 

Winding up

 

21                                  The Company has not taken any corporate action nor, so far as the
Company is aware, have any steps been taken or legal proceedings been started
or threatened against it for the winding up, dissolution or reorganisation or
for the appointment of a receiver or administrative receiver or any
administrator, trustee or similar officer in respect of the Company and its
assets, and, so far as the Company is aware, there are no grounds on which any
such order or petition for the winding up of the Company could be made or
presented.

 

16

 

SIGNATURE PAGE

 

IN WITNESS whereof
this Agreement has been executed on the date written at the beginning of this
document.

 

SIGNED
by SCIONA
LIMITED acting

by its duly authorised signatory:

 

	
  Signatory

  	
   

  
	
  Signature

  	
  :/s/ Christopher J.
  Martin

  
	
  Name

  	
  :Christopher J.
  Martin

  

 

SIGNED
by ABBEY
NATIONAL

TREASURY SERVICES OVERSEAS

HOLDINGS acting by its duly

authorised signatory:

 

	
  Signatory

  	
   

  
	
  Signature

  	
  :/s/ D. Atterbury

  
	
  Name

  	
  :D. Atterbury

  

 

SIGNED
and by PRELUDE
TRUST

PLC acting by its duly authorised

signatory:

 

	
  Signatory

  	
   

  
	
  Signature

  	
  :/s/ A. Allars

  
	
  Name

  	
  :A. Allars

  

 

SIGNED
and by GENAISSANCE

PHARMACEUTICALS, INC. acting by its

duly authorised signatory:

 

	
  Signatory

  	
   

  
	
  Signature

  	
  :/s/ Kevin Rakin

  
	
  Name

  	
  :Kevin Rakin

  

 

17Exhibit 10.1

               EMPLOYMENT AGREEMENT, dated as of August ___, 2003,
               between Tango Pacific, Inc., an Oregon corporation
               (the "Company") to be incorporated, and Jeff Harden
               (the "Executive").

                                  Introduction
                                  ------------

The Company recognizes that the future growth, profitability and success of the
Company's business will be substantially and materially enhanced by the
employment of the Executive by the Company.

     The Company desires to employ the Executive and the Executive has indicated
his willingness to provide his services, on the terms and conditions set forth
herein.

     NOW, THEREFORE, on the basis of the foregoing premises and in consideration
of the mutual covenants and agreements contained herein, the parties hereto
agree as follows:

        Section 1.    Employment.

        (a) The Company hereby agrees to employ the Executive and the
Executive hereby accepts employment with the Company, on the terms and subject
to the conditions hereinafter set forth. Subject to the terms and conditions
contained herein, the Executive shall serve as the President of the Sales
Division for Company and, in such capacity, shall report directly to the Chief
Executive Officer (the "C.E.O.") and shall have such duties as are typically
performed by the President of Sales for the corporation, together with such
additional duties, commensurate with the Executive's position as President of
the Company, as may be assigned to the Executive from time to time by the
C.E.O.; provided, however, the C.E.O. shall in its sole discretion, have the
right at any time to remove the Executive from his position as President of the
Company and in such event the C.E.O. shall, after consultation with the
Executive, reasonably determine the Executive's new title and responsibilities
and to whom the Executive will report; provided, further, that in the event of
any such changes, Executive's compensation and benefits shall remain unchanged
and that the Executive's position shall be at the senior management level. The
principal location of the Executive's employment shall be at location to be
determined with executive office located in Portland, Oregon, although the
Executive understands and agrees that he may be required to travel from time to
time for business reasons. If the Executive is elected or appointed with his
consent to be a director or officer of the Company during the term of this
Agreement, he shall serve in such capacity or capacities without additional
compensation.

        (b) The Executive shall devote his best efforts and his full
business time and attention (except for permitted vacation periods and
reasonable periods of illness or other incapacity) to the business and affairs
of the Company and its Subsidiaries. Executive shall perform his duties,
responsibilities and functions to the Company and its Subsidiaries hereunder to
the best of his abilities in a diligent, trustworthy, businesslike and efficient
manner.

                                        1

        (c) For purposes of this Agreement, "Subsidiaries" shall mean any
corporation or other entity of which the securities or other ownership interests
having the voting power to elect a majority of the board of directors or other
governing body are, at the time of determination, owned by the Company directly
or through one or more subsidiaries.

        (d) For the purposes of this Agreement, one "month" shall be
defined as one calendar month and therefore shall not necessarily be exactly
thirty days in length.

        Section 2. Term. Unless terminated pursuant to Section 6 hereof,
the Executive's employment hereunder shall commence on the date hereof and shall
continue during the period ending on the third anniversary of the date hereof
(the "Initial Term"). Thereafter, the Employment Term shall extend automatically
for consecutive periods of one year unless either party shall provide notice of
termination not less than 30 days prior to an anniversary date of this
Agreement. The Initial Term, together with any extension pursuant to this
Section 2, is referred to herein as the "Employment Term." The Employment Term
shall terminate upon any termination of the Executive's employment pursuant to
Section 6.

        Section 3. Compensation.   During the Employment Term, the Executive
shall be entitled to the following compensation and benefits contingent on the
Transition Period provisions described in Section 3(e):

        (a) Salary. As compensation for the performance of the Executive's
services hereunder, the Executive shall receive a salary (the "Salary") of one
hundred fifty four thousand dollars ($154,000.00) per annum to be paid by the
Company, with increases, if any, as may be approved in writing by the Board of
Directors. The Salary shall be payable in accordance with the payroll practices
of Pacific Print Works, LLC, as the same shall exist from time to time.

        (b) Stock. Over the course of this three-year Agreement, the Executive
is entitled to receive warrants to purchase a total of 2,000,000 shares of
Company stock at the price of $.001 per share, with said warrants to be provided
to the Executive in periodic pro-rata disbursements in such manner as deemed
reasonable by the C.E.O.

        (c) Transition Period. The transition period (the "Transition Period")
shall run from the time this Agreement has been entered into until the date of
October 12, 2003. If, during the Transition Period, the Company experiences a
month wherein the Company's total sales revenue exceeds five-hundred thirty
thousand dollars ($530,000) and all Expenses have been paid, then at the
conclusion of the Transition Period on October 12, 2003, the compensation
provisions (the "Compensation") described in Sections 3(a), (b), (c), (e) and
(f) shall take effect. Otherwise, the Executive shall not receive any
Compensation from the conclusion of the Transition Period on October 12, 2003
until such time as the Company experiences a month wherein the Company's total
sales revenue exceed five-hundred thirty thousand dollars ($530,000) and all
Expenses have been paid. During the Transition Period, the Executive shall not
receive the Compensation, but shall instead receive the following:

                                       2

        (1) A monthly salary in the amount of one-thousand one-hundred five
dollars ($1,105) less the cost of the benefits, as described in Section 3(d) of
this Agreement, to be provided to the Executive;

        (2) The Benefits as described in Section 3(d) of this Agreement.

        (3) During the Transition Period, the Executive shall receive three
hundred thousand shares of Company stock the Company will assist the Executive
in selling in a reasonable manner.

        (d) Tax Withholdings. All amounts payable to Executive as
compensation hereunder shall be subject to all legally required withholding by
the Company.

        Section 4. Exclusivity. During the Employment Term, the Executive
shall devote his full time to the business of the Company, shall faithfully
serve the Company, shall in all respects conform to and comply with the lawful
and reasonable directions and instructions given to him by the Board of
Directors in accordance with the terms of this Agreement, shall use his best
efforts to promote and serve the interests of the Company and shall not engage
in any other business activity, whether or not such activity shall be engaged in
for pecuniary profit, except that the Executive may (i) participate in the
activities of professional trade organizations related to the business of the
Company, (ii) engage in personal investing activities, and (iii) participate in
the activities set forth on Schedule I; provided that activities set forth in
these clauses (i), (ii) and (iii), either singly or in the aggregate, do not
interfere in any material respect with the services to be provided by the
Executive hereunder.

        Section 5. Reimbursement for Expenses. The Executive is authorized to
incur reasonable expenses in the discharge of the services to be performed
hereunder, including expenses for travel, entertainment, lodging and similar
items in accordance with the Company's expense reimbursement policy, as the same
exists from time to time. The Company shall reimburse the Executive for all such
proper expenses upon presentation by the Executive of itemized accounts of such
expenditures in accordance with the financial policy of the Company, as in
effect from time to time.

        Section 6. Termination and Default.

        (a) Death. The Executive's employment shall automatically terminate upon
his death and upon such event, the Executive's estate shall be entitled to
receive the amounts accrued but not paid to the Executive through the date of
the Executive's death.

        (b) Disability. If the Executive is unable to perform the duties
required of him under this Agreement because of illness, incapacity, or physical
or mental disability, the Employment Term shall continue and the Company shall
pay all compensation required to be paid to the Executive hereunder, unless the
Executive is unable to perform the duties required of him under this Agreement
due to such disability for an aggregate of 120 days (whether or not consecutive)
during any 12-month period during the term of this Agreement.

                                       3

        (c) Cause. The Company may terminate the Executive's employment at any
time, with or without Cause. In the event of termination pursuant to this
Section 6(c) for Cause, the Company shall deliver to the Executive written
notice setting forth the basis for such termination, which notice shall
specifically set forth the nature of the Cause which is the reason for such
termination. Termination of the Executive's employment hereunder shall be
effective upon delivery of such notice of termination. For purposes of this
Agreement, "Cause" shall mean: (i) any material breach of this Agreement by the
Executive, but only if such material breach shall not have been corrected by the
Executive within 30 business days of receipt by the Executive of written notice
from the Company of the occurrence of such material breach; (ii) the Executive's
repeated failure (except where due to a disability contemplated by subsection
(b) hereof), neglect or refusal to perform his duties hereunder; (iii) any
willful or intentional act or omission by the Executive that has the effect of
injuring the reputation or business of the Company or its affiliates in any
material respect; (iv) any habitual lateness or continued or repeated absence
from the Company, unless such lateness or absence is (A) approved or excused by
the Board of Directors or (B) is the result of the Executive's illness,
disability or incapacity (in which event the provisions of Section 6(b) hereof
shall control); (v) use of illegal drugs by the Executive or repeated
drunkenness; (vi) the Executive being convicted of, or pleading guilty or nolo
contendere to a felony, misdemeanor (other than, if applicable, minor traffic
violations) or crime of moral turpitude; or (vii) the commission by the
Executive of an act of dishonesty, fraud or embezzlement against the Company.
The determination as to the occurrence of any event, act or omission enumerated
in this Section 6(c) shall solely be made by the Board of Directors acting in
good faith.

        (d) Good Reason. The Executive may terminate his employment for "Good
Reason" following a Substantial Breach (as hereinafter defined), but only if
such Substantial Breach shall not have been corrected by the Company within 30
days of receipt by the Company of written notice from the Executive to the Board
of Directors of the occurrence of such Substantial Breach, which notice shall
specifically set forth the nature of the Substantial Breach which is the reason
for such resignation. The term "Substantial Breach" means (i) the failure by the
Company to pay to the Executive the Salary and the Bonus, if any, in accordance
with Sections 3(a) and 3(b) hereof; (ii) the failure by the Company to allow the
Executive to participate in the Company's employee benefit plans generally
available from time to time to senior executives of the Company; or (iii) the
failure of any successor to all or substantially all of the business and/or
assets of the Company to assume this Agreement; provided, however, that the term
"Substantial Breach" shall not include a termination of the Executive's
employment hereunder pursuant to Section 6(a), (b) or (c) hereof. The date of
termination of the Executive's employment under this Section 6(d) shall be the
effective date of any resignation specified in writing by the Executive, which
shall not be less than 30 days after receipt by the Board of Directors of
written notice of such resignation; provided that such resignation shall not be
effective pursuant to this Section 6(d), and the Substantial Breach shall be
deemed to have been cured, if such Substantial Breach is corrected by the
Company during such 30-day period.

                                       4

        (e) Payments. In the event that the Executive's employment terminates
for any reason, the Company shall pay to the Executive all amounts accrued but
unpaid hereunder through the date of termination in respect of Salary or
unreimbursed expenses. In the event the Executive's employment is terminated by
the Company without Cause or by the Executive with Good Reason, in addition to
the amounts specified in the foregoing sentence, (i) the Executive shall
continue to receive the Salary (less any applicable withholding or similar
taxes) at the rate in effect hereunder on the date of such termination
periodically, in accordance with the Company's prevailing payroll practices, for
a period of 6 months following the date of such termination (the "Severance
Term"), (ii) to the extent permissible under the Company's health plans, the
Executive shall continue to receive any health benefits provided to him as of
the date of such termination in accordance with Section 3(c) hereunder during
the Severance Term; provided, however, the Company's obligations pursuant to
this sentence shall be contingent upon the Executive signing a release agreement
reasonably satisfactory to the Company, that releases the Company, its officers,
directors, employees, stockholders and affiliates from all claims and
liabilities through the termination date other than the payment obligations in
this Section 6(e). In the event the Executive accepts other employment or
engages in his own business prior to the last date of the Severance Term, the
Executive shall forthwith notify the Company and the Company shall be entitled
to set off from amounts due the Executive under this Section 6(e) the amounts
paid to the Executive in respect of such other employment or business activity.
Amounts owed by the Company in respect of the Salary or reimbursement for
expenses under the provisions of Section 5 hereof shall, except as otherwise set
forth in this Section 6(e), be paid promptly upon any termination.
Notwithstanding the foregoing, all payments by the Company pursuant to the
second sentence of this Section 6(e) may be immediately terminated and recovered
by the Company in the event the Executive materially breaches Sections 7 or 8 of
this Agreement.

        (f) Survival of Operative Sections. Upon any termination of the
Executive's employment, the provisions of Sections 6(e) and 7 through 20 of this
Agreement shall survive to the extent necessary to give effect to the provisions
thereof.

                                       5

        Section 7.     Secrecy and Non-Competition.

        (a) No Competing Employment. The Executive acknowledges that the
agreements and covenants contained in this Section 7 are essential to protect
the value of the Company's business and assets and by his current employment
with the Company and its Subsidiaries, the Executive has obtained and will
obtain such knowledge, contacts, know-how, training and experience and there is
a substantial probability that such knowledge, know-how, contacts, training and
experience could be used to the substantial advantage of a competitor of the
Company and to the Company's substantial detriment. Therefore, the Executive
agrees that for the period commencing on the date of this Agreement and ending
on the 18 month anniversary of the termination of the Executive's employment
hereunder (such period is hereinafter referred to as the "Restricted Period")
with respect to any geographical area in which the Company or its Subsidiaries
engage or plan to engage in business during the Employment Term, the Executive
shall not participate or engage, directly or indirectly, for himself or on
behalf of or in conjunction with any person, partnership, corporation or other
entity, whether as an employee, agent, officer, director, shareholder, partner,
joint venturer, investor or otherwise, in any business activities if such
activity consists of any activity undertaken or expressly contemplated to be
undertaken by the Company or any of its Subsidiaries or by the Executive at any
time during the Employment Term.

        (b) Nondisclosure of Confidential Information. The Executive, except in
connection with his employment hereunder, shall not disclose to any person or
entity or use, either during the Employment Term or at any time thereafter, any
information not in the public domain or generally known in the industry, in any
form, acquired by the Executive while employed by the Company or any predecessor
to the Company's business or, if acquired following the Employment Term, such
information which, to the Executive's knowledge, has been acquired, directly or
indirectly, from any person or entity owing a duty of confidentiality to the
Company or any of its Subsidiaries or affiliates or any non-public third party
information which is subject to an obligation of confidentiality to which the
Company is bound, relating to the Company, its Subsidiaries or affiliates or any
non-public third party information which is subject to an obligation of
confidentiality to which the Company is bound, including but not limited to
information regarding customers, vendors, suppliers, trade secrets, training
programs, manuals or materials, technical information, contracts, systems,
procedures, mailing lists, know-how, trade names, improvements, price lists,
financial or other data (including the revenues, costs or profits associated
with any of the Company's products or services), business plans, code books,
invoices and other financial statements, computer programs, software systems,
databases, discs and printouts, plans (business, technical or otherwise),
customer and industry lists, correspondence, internal reports, personnel files,
sales and advertising material, telephone numbers, names, addresses or any other
compilation of information, written or unwritten, which is or was used in the
business of the Company or any Subsidiaries or affiliates thereof. The Executive
agrees and acknowledges that all of such information, in any form, and copies
and extracts thereof, are and shall remain the sole and exclusive property of
the Company, and upon termination of his employment with the Company, the
Executive shall return to the Company the originals and all copies of any such
information provided to or acquired by the Executive in connection with the
performance of his duties for the Company, and shall return to the Company all
files, correspondence and/or other communications received, maintained and/or
originated by the Executive during the course of his employment.

        (c) No Interference. During the Restricted Period, the Executive shall
not, whether for his own account or for the account of any other individual,
partnership, firm, corporation or other business organization (other than the
Company), directly or indirectly solicit, endeavor to (i) induce or attempt to
induce any employee of the Company or any Subsidiary to leave the employ of the
Company or such Subsidiary, or in any way interfere with the relationship
between the Company or any Subsidiary and any employee thereof, (ii) hire any
person who was an employee or manager of the Company or any Subsidiary at any
time during the Employment Term or (iii) induce or attempt to induce any
customer, supplier, licensee, licensor, franchisee or other business relation of
the Company or any Subsidiary to cease doing business with the Company or such
Subsidiary, or in any way interfere with the relationship between any such
customer, supplier, licensee or business relation and the Company or any
Subsidiary (including, without limitation, making any negative or disparaging
statements or communications regarding the Company or its Subsidiaries).

                                       6

        (d) Inventions, etc. The Executive hereby sells, transfers and assigns
to the Company or to any person or entity designated by the Company all of the
entire right, title and interest of the Executive in and to all inventions,
ideas, disclosures and improvements, whether patented or unpatented, and
copyrightable material, made or conceived by the Executive, solely or jointly,
during his employment by the Company which relate to methods, apparatus,
designs, products, processes or devices, sold, leased, used or under
consideration or development by the Company, or which otherwise relate to or
pertain to the business, functions or operations of the Company or which arise
from the efforts of the Executive during the course of his employment for the
Company. The Executive shall communicate promptly and disclose to the Company,
in such form as the Company requests, all information, details and data
pertaining to the aforementioned inventions, ideas, disclosures and
improvements; and the Executive shall execute and deliver to the Company such
formal transfers and assignments and such other papers and documents as may be
necessary or required of the Executive to permit the Company or any person or
entity designated by the Company to file and prosecute the patent applications
and, as to copyrightable material, to obtain copyright thereof. Any invention
relating to the business of the Company and disclosed by the Executive within
one year following the termination of his employment with the Company shall be
deemed to fall within the provisions of this paragraph unless proved to have
been first conceived and made following such termination.

        (e) Enforcement. The Executive acknowledges and agrees that the
covenants set forth in Section 7 hereof are reasonable and valid in geographical
and temporal scope and in all other respects. If a court of competent
jurisdiction makes a final determination that the restrictions stated in Section
7 are invalid or unenforceable, the parties hereto agree that the maximum
period, scope or geographical area reasonable under such circumstances shall be
substituted for the stated period, scope or area.

        Section 8. Injunctive Relief. Without limiting the remedies available to
the Company, the Executive acknowledges that a breach of any of the covenants
contained in Section 7 hereof will result in material irreparable injury to the
Company or its Subsidiaries or affiliates for which there is no adequate remedy
at law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of such a breach or threat thereof, the Company
shall be entitled to obtain a temporary restraining order and/or a preliminary
or permanent injunction, without the necessity of proving irreparable harm or
injury as a result of such breach or threatened breach of Section 7 hereof,
restraining the Executive from engaging in activities prohibited by Section 7
hereof or such other relief as may be required specifically to enforce any of
the covenants in Section 7 hereof.

                                       7

        Section 9. Extension of Restricted Period. In addition to the remedies
the Company may seek and obtain pursuant to Section 8 of this Agreement, the
Restricted Period shall be extended by any and all periods during which the
Executive shall be found by a court to have been in violation of the covenants
contained in Section 7 hereof.

        Section 10. Representations and Warranties of the Executive. The
Executive represents and warrants to the Company as follows:

        (a) This Agreement, upon execution and delivery by the Executive, will
be duly executed and delivered by the Executive and (assuming due execution and
delivery hereof by the Company) will be the valid and binding obligation of the
Executive enforceable against the Executive in accordance with its terms.

        (b) Neither the execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby nor the performance of this
Agreement in accordance with its terms and conditions by the Executive (i)
requires the approval or consent of any governmental body or of any other person
or (ii) conflicts with or results in any breach or violation of, or constitutes
(or with notice or lapse of time or both would constitute) a default under, any
agreement, instrument, judgment, decree, order, statute, rule, permit or
governmental regulation applicable to the Executive. Without limiting the
generality of the foregoing, the Executive is not a party to any employment,
non-competition, non-solicitation, no hire or similar agreement that restricts
in any way the Executive's ability to engage in any business or to solicit or
hire the employees of any person.

        (c) Executive hereby acknowledges and represents that he fully
understands the terms and conditions contained herein.

        The representations and warranties of the Executive contained in this
Section 10 shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby.

        Section 11. Successors and Assigns; No Third-Party Beneficiaries. This
Agreement shall inure to the benefit of, and be binding upon, the successors and
assigns of each of the parties, including, but not limited to, the Executive's
heirs and the personal representatives of the Executive's estate; provided,
however, that neither party shall assign or delegate any of the obligations
created under this Agreement without the prior written consent of the other
party. Notwithstanding the foregoing, the Company shall have the unrestricted
right to assign this Agreement and to delegate all or any part of its
obligations hereunder to any of its Subsidiaries, affiliates and successors
(including to an entity into which the Company merges), but in such event such
assignee shall expressly assume all obligations of the Company hereunder and the
Company shall remain fully liable for the performance of all of such obligations
in the manner prescribed in this Agreement. Nothing in this Agreement shall
confer upon any person or entity not a party to this Agreement, or the legal
representatives of such person or entity, any rights or remedies of any nature
or kind whatsoever under or by reason of this Agreement.

                                       8

        Section 12. Waiver and Amendments. Any waiver, alteration, amendment or
modification of any of the terms of this Agreement shall be valid only if made
in writing and signed by the parties hereto; provided, however, that any such
waiver, alteration, amendment or modification is consented to on the Company's
behalf by the Board of Directors. No waiver by either of the parties hereto of
their rights hereunder shall be deemed to constitute a waiver with respect to
any subsequent occurrences or transactions hereunder unless such waiver
specifically states that it is to be construed as a continuing waiver.

        Section 13. Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired,
unless the provisions held invalid, illegal or unenforceable shall substantially
impair the benefits of the remaining provisions hereof.

        Section 14. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES.

        Section 15. Notices.

         (a) All communications under this Agreement shall be in writing and
shall be delivered by hand or mailed by overnight courier or by registered or
certified mail, postage prepaid:

        (i) if to the Executive, at 18055 A NE San Rafael Street., Portland,
Oregon 97230 or at such other address as the Executive may have furnished the
Company in writing.

        (ii) if to the Company, at 18055 A NE San Rafael Street., Portland,
Oregon 97230 marked for the attention of the Board of Directors, or at such
other address as it may have furnished in writing to the Executive.

        (b) Any notice so addressed shall be deemed to be given: if delivered by
hand, on the date of such delivery; if mailed by courier, on the first business
day following the date of such mailing; and if mailed by registered or certified
mail, on the third business day after the date of such mailing.

        Section 16. Section Headings. The headings of the sections and
subsections of this Agreement are inserted for convenience only and shall not be
deemed to constitute a part thereof, affect the meaning or interpretation of
this Agreement or of any term or provision hereof.

                                       9

        Section 17. Entire Agreement. This Agreement constitutes the entire
understanding and agreement of the parties hereto regarding the employment of
the Executive. This Agreement supersedes all prior negotiations, discussions,
correspondence, communications, understandings and agreements between the
parties relating to the subject matter of this Agreement including any prior
oral or written Employment Agreement between the Company and the Executive (the
"Existing Employment Agreement"). The Existing Employment Agreement shall be of
no further force or effect. No promises, covenants or representations of any
character or nature other than those expressly stated herein have been made to
induce either party to enter into this Agreement.

        Section 18. Construction. The parties hereto agree that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not be applied in the construction or interpretation of
this Agreement.

        Section 19. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

        Section 20. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall be considered one and the same agreement.

                                       10

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

                                                     TANGO PACIFIC, INC.

                                                By:  _________________________
                                                Name:
                                                Title:

                                                     ---------------------------

                                                     Jeff Harden

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}]]