Document:

f8ka1ex10vi_universal.htm

Exhibit 10.6

 

RESEARCH AGREEMENT

 

This Research Agreement (“Agreement”) is entered into by and between Global Photonic Energy Corporation (“Sponsor”), a Pennsylvania corporation and the University of Southern California (“University”), a California nonprofit educational institution incorporated under the laws of the State of California, effective the 1ST day of May, 1998.

Recitals

WHEREAS, the research project contemplated by this Agreement is of mutual interest and benefit to University and to Sponsor, will further the instructional, scholarship and research objectives of University in a manner consistent with its status as a nonprofit, tax-exempt, educational institution, and may derive benefits for both Sponsor and University through inventions, improvements and discoveries;

NOW, THEREFORE, in consideration of the premises and mutual convents herein contained, the parties hereto agree to the following:

	
  

	
1.

	
Definitions

	
  

	
1.1

	
“Research” shall mean the project described in Appendix A hereof, under the direction Mark E. Thompson, Ph.D. (“Principal Investigator”).

	
  

	
1.2

	
“University Intellectual Property” shall mean individually and collectively all inventions, improvements and discoveries, whether or not covered by intellectual property protection, which are conceived or made by one or more employees of University in performance of the Research.

	
  

	
2.

	
Research Work

	
  

	
2.1

	
University shall use reasonable efforts to perform such Research substantially in accordance with the terms and conditions of this Agreement. Anything in this Agreement to the contrary notwithstanding. Sponsor and University may at any time amend the Research by mutual written agreement.

	
  

	
2.2

	
In the event that the Principal Investigator become unable or unwilling to continue the Research, and a mutually acceptable substitute is not available, University or Sponsor shall have the option to terminate this Agreement.

	
  

	
2.3

	
Nothing in the Agreement shall be construed to limit the freedom of researchers, whether participants in this Agreement or not, from engaging in similar research inquires made independently under other grants, contracts or agreements with parties other than Sponsor.

 

  

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3.

	
  Period of Performance

This period of performance of this Agreement is May 1, 1998 through April 20, 2001. This Agreement shall become effective upon the date of last signature hereto and shall continue in effect for the full duration of the period of performance unless sooner terminated in accordance with the provisions of Article 14.

	
  

	
4.

	
  Reports

University shall furnish Sponsor letter reports in such frequency as mutually agreed to by the parties summarizing the work conducted, but no less frequently than quarterly. A final report setting forth the accomplishments and significant research findings shall be prepared by University and submitted to Sponsor within ninety (90) days of the expiration of the Agreement.

	
  

	
5.

	
  Costs, Billings and Other Support

	
  

	
 5.1

	
It is agreed and understood by the parties hereto that, subject to Article 22, total costs to the Sponsor hereunder shall not exceed the amount of ($2,874,238). Payment shall be made by Sponsor in advance according to the following schedule.

May 1, 1998 – April 30, 1999 = $922,086

May 1, 1998 - $153,681

July 1, 1998 - $153,681

September 1, 1998 - $153,681

November 1, 1998 - $153,681

January 1, 1999 - $153,681

March 1, 1999 - $153,681

Actual payments for the period May 1, 1999 - April 30, 2000 shall be calculated as follows:

	
  

	
(a)

	
Sponsor shall pay University $959, 339 less any amount unexpended from the prior 12 month period. Six equal payments will be made in advance following the established payment schedule.

	
  

	
(b)

	
Notice of such amount including the month of April shall be delivered to Sponsor no later than April 1, 1999.

Actual payments for the period May 1, 2000 - April 30, 2001 shall be calculated as follows:

	
  

	
(a)

	
Sponsor shall pay University $992,814 less any amount unexpended from the prior 12 month period. Six equal payments will be made in advance following the established payment schedule.

 

  

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(b)

	
Notice of such an amount including the month of April shall be delivered to Sponsor no later than April 1, 2000.

	
  

	
5.2

	
Checks shall be made payable to University of Southern California and sent to:

University of Southern California

Department of Contracts & Grants

837 W. 36th Place

Los Angeles, CA 90089-1147

Attn: Nann L. Bennett

Fed. ID No. 95-1642394

	
  

	
5.3

	
In the event of termination of this Agreement pursuant to Article 14 hereof, Sponsor shall pay all costs accrued by University as of date of termination, including noncancellable obligations. Such obligations shall include all noncancellable graduate fellowships and appointments called for in Appendix A incurred prior to the effective date of termination. After termination, any obligation of the Sponsor for graduate fellowships and appointments shall end no later than the end of University's academic year following termination.

	
  

	
5.4

	
University shall furnish to Sponsor on an annual expenditure report, within 30 days of each anniversary date of this Agreement, outlining spending by major budget categories listed in the proposal budget.

	
  

	
5.5

	
The payment schedule can be modified upon mutual agreement of the parties.

	
  

	
5.6

	
Interest shall accrue on the amounts paid by Sponsor until spent by the University. The accrued interest will be used to support this project.

	
  

	
5.7

	
Subcontract payments included in the total amount and budgeted for Princeton University total $1,547,990:

Year 1 - $504,926

Year 2 - $505,593

Year 3 - $537,471

	
  

	
6.

	
  Publicity

Neither party shall publicly use the name, trade name, trademark or other designation of the other party in connection with any products, promotion or advertising without the prior written permission of the other party This shall not include documents available to the public that identify the existence of the Agreement, including financial documents, interviews, press releases, or similar documents relating to this Agreement or the License Agreement. University shall use reasonable efforts to acknowledge Sponsor as the exclusive licensee of the solar energy and hydrogen energy technologies in any press release.

 

  

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7.

	
Publications

	
  

	
7.1

	
University shall have the right, at its discretion, to release information or to publish any material resulting from the Research. University shall furnish Sponsor with a copy of any proposed publication thirty (30) days prior to submission for publication for review and comment. Sponsor may request University to delay publishing such proposed publication for a maximum of an additional sixty (60) days in order to protect the potential possibility of any invention described therein.

	
  

	
7.2

	
University shall give Sponsor the option of receiving an acknowledgement in any publication for its sponsorship of the research.

	
  

	
8.

	
Confidentiality

	
  

	
8.1

	
During the course of this Agreement, Sponsor may provide University with certain information, data, or material in writing which Sponsor has clearly marked as confidential or proprietary in nature. University shall receive and hold such information in confidence and agrees to use its reasonable efforts to prevent disclosure to third parties of said information in the manner University treats its own similar information.

	
  

	
8.2

	
University shall not consider information disclosed to it by sponsor confidential which: (1) is now common knowledge or subsequently becomes such through no breach of this Agreement; (2) is rightfully in University's possession prior to Sponsor's disclosure as shown by written records; (3) is disclosed to University by an independent third party; or (4) is independently developed by or for University without benefit of confidential information received from Sponsor.

	
  

	
9.

	
Intellectual Property

	
  

	
9.1

	
All rights and title to University Intellectual Property under the Research shall belong to University and shall be subject to the terms and conditions of this Agreement and the License Agreement as hereinafter defined.

	
  

	
9.2

	
University will promptly notify Sponsor of any University Intellectual Property. Sponsor shall, upon reviewing such notification, determine whether to request University to file, prosecute and maintain any patent application or application for other intellectual property protection, domestic or foreign, in University's name. Sponsor shall bear all reasonable costs incurred in connection with such preparation, filing, prosecution and maintenance directed to said University Intellectual Property. University shall keep Sponsor advised as to all developments with respect to such applications and Sponsor shall be given an opportunity to review and comment thereon.

  

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9.3

	
If Sponsor decides to discontinue the financial support of the application for intellectual property protection, University shall be free to file or continue prosecution and maintenance on any such application, at University's sole expense. If Sponsor elects to discontinue the financial support of the application for intellectual property protection prior to Issuance of a valid patent, Sponsor thereby waives and gives up any fight it may have under Section 10 below to license University Intellectual Property.

	
  

	
10.

	
  Grants of Right

Title to any inventions first conceived by University personnel in the performance of the work funded under this Agreement shall vest in University. University hereby grants to Sponsor the exclusive license to any and all such inventions on terms and conditions of a certain License Agreement of even date herewith.

Title to any inventions first conceived by Princeton personnel in the performance of the work funded under this Agreement shall vest in Princeton, and shall be managed by University in accordance with the Interinstitutional Agreement between University and Princeton, provided that Princeton notifies University of such inventions. Sponsor shall have the exclusive license to any and all such inventions on terms and conditions of a certain License Agreement of even date herewith (the "License Agreement").

University shall promptly provide a complete written disclosure for each and every invention first conceived or discovered in the performance of the work funded under this Agreement, including Princeton technologies, provided that Princeton notifies University of such inventions. All such inventions shall automatically become subject to the License Agreement.

Title to any inventions first conceived jointly by personnel from University, Princeton (provided that Princeton notifies University of such inventions), or Sponsor shall vest jointly in the names of University, Princeton or Sponsor as appropriate, and shall be subject to the License Agreement."

	
  

	
11.

	
  Copyrights

All rights to copyrightable materials, including computer software, first created during performance of the work funded under this Agreement shall vest in University and are subject to the License Agreement.

 

  

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12.

	
  Arbitration

Any controversy or claim between the parties arising out of or relating to this Agreement, or a breach thereof, which cannot be resolved by mutual agreement, shall be settled by binding arbitration conducted by a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and any judgment upon the award rendered by the arbitrator may be entered in any Court having jurisdiction thereof. Any such arbitration shall be held in the County of Los Angeles, California.

	
  

	
13.

	
   Export

Sponsor agrees that it will at all times be in compliance with the United States government export regulations and laws and that any sub-sponsor agreement will require that the sub-sponsor is in compliance with these regulations and laws. The Sponsor asserts that it is not now doing business with any country to which the United States government prohibits export of products under consideration in this Research.

	
  

	
14.

	
   Termination

	
  

	
14.1

	
Either party may terminate this Agreement upon ninety (90) days prior written notice to the other.

	
  

	
14.2

	
Termination of this Agreement by either party for any reason shall not effect the rights and obligations of the parties accrued prior to the effective date of termination.

	
  

	
15.

	
   Warranties Disclaimer

	
  

	
15.1

	
University agrees to perform the Research in accordance with prevailing professional standards.

	
  

	
15.2

	
UNIVERSITY MAKES NO WARRANTIES FOR ANY PURPOSE WHATSOEVER, EXPRESS OR IMPLIED, AS TO THE RESEARCH OR THE RESULTS OF THE RESEARCH, INCLUDING THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE RESEARCH OR THE RESULTS OF THE RESEARCH UNDER THIS AGREEMENT. Neither the Principal Investigator, Sponsor, nor any other person is authorized to give any such warranty in the name of or on behalf of University.

	
  

	
15.3

	
Sponsor agrees that it will not rely solely upon technical information provided by University or the Principal Investigator in developing any invention or product, but will independently test, analyze and evaluate all inventions and products prior to manufacture and distribution of such inventions and products.

 

  

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16.

	
   Insurance and Indemnification

	
  

	
16.1

	
University agrees to maintain adequate liability insurance, such protection being applicable to officers, employees and agents while acting within the scope of their employment by University.

	
  

	
16.2

	
Sponsor agrees to hold harmless, indemnify and defend University, its trustees, officers, employees and agents from all liabilities, demands, damages, expenses and losses arising out of (i) performance of this Agreement, except to the extent of University's gross negligence or willful misconduct, (ii) Sponsor's use of the results of the Research, or (iii) Sponsor's use, manufacture or sale of products or inventions made by use of the results of the Research. The provisions of this paragraph shall survive completion or termination of this Agreement

	
  

	
16.3

	
Sponsor warrants that at its sole cost and expense it maintains in effect a policy or program of comprehensive general liability insurance or self-insurance in single limit coverage of not less than Two Million Dollars ($2,000,000) per incident and Two Million Dollars ($2,000,000) annual aggregate for death, bodily injury, illness or property damage to support the indemination obligations assumed herein. Such policy shall name University as an additional insured and shall provide for not less than thirty (30) days prior written notice before any cancellation or material change in coverage shall be effective. A Certificate evidencing the comprehensive general liability policy shall be delivered to University upon request.

	
  

	
17.

	
   Independent Contractor

University is an independent contractor under this Agreement and not an agent, servant, employee, associate, joint venture or partner of Sponsor.

	
  

	
18.

	
   Governing Law

	
  

	
18.1

	
University and Sponsor agree to abide by all Federal, State and local laws, rules, regulations, and ordinances in the performance of this Agreement.

	
  

	
18.2

	
This Agreement shall be governed and construed in accordance with the laws of the State of California. Jurisdiction and venue of any dispute arising out of this Agreement shall lie with any court of competent jurisdiction within the County of Los Angeles.

	
  

	
19.

	
   Attorneys’ Fees

In the event litigation or arbitration is commended to enforce any of the terms of this Agreement, the prevailing party shall cover, as part of the award and judgment, its reasonable attorneys' fees and costs of such litigation or arbitration from the non-prevailing party

 

  

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20.

	
   Assignment

Neither party shall assign this Agreement except with the prior written consent of the other party.

	
  

	
21.

	
  Waiver of Severability

	
  

	
21.1

	
No waiver by either party of any breach of any provision hereof shall constitute a waiver of any other breach of that or of any other provision hereof

	
  

	
21.2

	
In the event a court or governmental agency of competent jurisdiction holds any provision of this Agreement to be invalid, such holding shall have no effect on the remaining provisions of this Agreement, and they shall continue in full force and effect. Upon such holding, the parties shall, within a reasonable period of time, determine whether the severed provision(s) detrimentally and materially affect the obligations or performance of either or both parties. If so affected, the parties shall, within a reasonable period of time, negotiate in good faith to modify this Agreement to relieve such effects. If such negotiations do not result in mutually agreeable modification to this Agreement, notwithstanding the provisions of Article 14 herein either effected party may terminate this Agreement upon providing the other party with thirty (30) days written notice of such termination.

	
  

	
22.

	
   Agreement Modification

This Agreement may be modified or amended, including extension of the term of this Agreement, at any time only by a written amendment executed by both parties.

	
  

	
23.

	
   Notices

Any notices given under this Agreement shall be in writing and delivered to the following addresses by return receipt mail, postage prepaid; by overnight courier service; or by facsimile transmission. Such notices shall be effective upon the third business day following mailing, if by mail; upon receipt, if by courier or upon confirmation of successful transmission, if by facsimile.

For Sponsor:

Global Photonic Energy Corporation

Three Bala Plaza, Suite 104 East

Bala Cynwyd, PA 19004

Attn: Steven V. Abramson, President

  

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For University:

University of Southern California

Department of Contracts and Grants

University Park

837 West 36th Place

Stonier Hall, Room 330

Attn: Nann L. Bennett

Copy to: Dr. Mark E Thompson

	
  

	
24.

	
   Third Party Rights

This Agreement shall not create any rights, including without limitation, third-party beneficiary rights, in any person or entity not a party to this Agreement.

	
  

	
25.

	
   Relationship Between American Biomimetics Corporation ("ABC") and Global Photonic Energy Corporation

 

ABC entered into the original Sponsored Research Agreement and License Agreement respecting the energy technology with Princeton University in August 1993. The Sponsored Research Agreement was subsequently assigned by Princeton University to University of Southern California. ABC formed GPEC to commercialize the energy technology and has transferred its rights under the Sponsored Research Agreement and License Agreement to GPEC.

	
  

	
26.

	
   Entire Agreement

This Agreement constitutes the entire understanding between the parties hereto and there are no collateral, oral or written agreements or understandings. This Agreement supersedes any prior oral or written agreement or understanding between the parties.

IN WITNESS WHEREOF, the parties have executed this Agreement in two or more counterparts, each as an original and all together as one instrument as of the date of last signature below written.

	
GLOBAL PHOTONIC ENERGY

	  	
UNIVERSITY OF

	
CORPORATION

	  	
SOUTHERN CALIFORNIA

	  	  	  	  	  
	
By:

	
/s/ Steven V Abramson

	  	
By:

	
/s/ Lloyd Armstrong, Jr.

	Name:	
Steven V Abramson

	  	Name:	
Lloyd Armstrong, Jr.

	Title:	
President

	  	Title:	
Provost and Senior Vice President for Academic Affairs

	
Date:

	
6/2/98

	  	
Date:

	
5-7-98

 

 

 9f8ka1ex10vii_universal.htm

Exhibit 10.7

 

Note:  Throughout this document, certain confidential material contained herein has been omitted and has been separately filed with the Commission.  Each omission has been marked with an [***].

 

THE UNIVERSITY OF SOUTHERN CALIFORNIA

RESEARCH AGREEMENT

This Research Agreement is effective as of January 1, 2006 between the University of Southern California, a non-profit, educational institution incorporated under the laws of the State of California, (hereinafter referred to as "USC") and Global Photonic Energy Corporation, a corporation existing under the laws of the State of Pennsylvania, (hereinafter referred to as "GPEC").

	
1.

	
Statement of Work

USC, has valuable experience, skill and ability in the area of photosensitive optoelectronic technology for photonic energy conversion. OPEC desires to have USC undertake a research project in the above-named, area in accordance with the scope of work described in Exhibit A, Research Proposal. USC agrees to use reasonable effort to perform the research project described therein and hereafter referred to as the "Research." The scope of work will be reviewed annually during the month of March at which time OPEC may decide not to continue to pursue tasks approved in the Research Proposal. USC will identify costs associated with future work of the task(s) and the total, budget will be reduced by that amount unless alternative task(s) are proposed and agreed upon by OPEC.

	
2.

	
Continuity

This Research Agreement between USC and GPEC is being entered into at the request of USC and arises from the fact that Professor Forrest has changed his institutional affiliation from Princeton University to the University of Michigan ("MICHIGAN"). It is the intent of the parties that, notwithstanding the fact that certain parties may be altered, no discontinuity or change in substantive tights shall be created between this Agreement, on the one hand, and the June 9, 2004 and May 1, 1998 Research Agreements, on the other. Further, both parties intend that no discontinuity or change in rights shall herein be created relative to the May 1, 1998 License Agreement or the same as amended or restated in the future, except for the fact the MICHIGAN shall become a party to the License Agreement.

	
3.

	
Principal Investigator

The Research, will, be supervised by Professor Mark E. Thompson at USC and under subcontract, Professor Stephen R. Forrest at MICHIGAN. If for any reason Professor Thompson is unable to continue to serve as Principal Investigator and a successor acceptable to both. USC and OPEC is not available, this Agreement shall be terminated as provided in Article 7.

	
4.

	
Period of Performance

This Research will be conducted during the period May 1, 2006 through April 30, 2009, but may be extended by agreement of the Parties.

	
5.

	
Reimbursement of Costs

GPEC shall reimburse USC for all costs incurred in connection with the Research up to the amount of $2,624,893. While it is estimated that this amount is sufficient to conduct the research, USC may submit to OPEC a revised budget requesting additional funds. Written authorization is required if either Professor Thompson or Professor Forrest wish to exceed the yearly allocations listed in the approved budget (Exhibit B).

  

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OPEC is not liable for any cost in excess of the amount specified herein unless this Agreement is modified in writing. Any funds paid to USC and not expended upon expiration or termination of this Agreement (including all extensions thereof) shall be returned to GPEC by USC.

	
6.

	
Payment

	
(a)

	 	
OPEC shall make payments to USC, with the first payment of $215,024.25 due upon invoice and within thirty (30) days from the signing of this Agreement. The balance is due in accordance with the following schedule upon invoice:

	
Date: August 1, 2006

	
Amount $215,024.25

	
Date: November 1, 2006

	
Amount $215,024.25

	
Date: February 1, 2007

	
Amount $215,024.25

	
Date: May 1, 2007

	
Amount $216,423.25

	
Date: August 1, 2007

	
Amount $216,423.75

	
Date: November 1, 2007

	
Amount $216,423.75

	
Date: February 1, 2008

	
Amount $216,423.75

	
Date: May 1, 2008

	
Amount $224,775.75

	
Date: August 1, 2008

	
Amount $224,775.75

	
Date: November 1, 2008

	
Amount $224,775.75

	
Date: February 1, 2009

	
Amount $224,775.75

	
(b)

	 	
Expenditures will be reviewed quarterly upon receipt of the financial reports to determine whether adherence to the above payment schedule should be adjusted.

	
(c)

	 	
Checks shall reference "GPEC/Dr. Mark Thompson" and shall be made payable to the University of Southern California and sent to:

The University of Southern California

Sponsored Projects Accounting

File Number 52095

Los Angeles, California 90074-2095

	
(d)

	 	
Interest shall accrue on the amounts paid by GPEC until spent by USC. The accrued interest will be used to support this project.

	
7.

	
Termination

This Agreement and the Amended License Agreement dated May 1, 1998, as the same may be amended from time to time, between USC, Princeton, and OPEC are integral parts of the relationship between the parties. The parties intend that termination of both Agreements are to occur only under extreme situations, and in the absence of any reasonable alternatives, as described herein. This Agreement is designed to provide maximum flexibility to perform the Research. Therefore, not achieving the desired objective is not a ground for termination of this Agreement.

GPEC may terminate performance under this Agreement upon sixty (60) days' written notice. Upon termination, USC will be reimbursed for all costs and non-cancelable commitments incurred in the performance of the research and not yet paid for, such reimbursement together with other Payments not to exceed the total estimated project costs specified in Article 5. Upon termination, any obligation of GPEC for graduate students' support shall end no later than the end of USC's academic year following termination.. USC may terminate performance, upon sixty (60) day's -Written notice, if circumstances beyond its control preclude continuation of the research.

 

  

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8.

	
Intellectual Property

Title to any inventions first conceived by USC personnel in the performance of the work funded under this Agreement shall vest in USC, USC hereby grants to OPEC the exclusive license to any and all such inventions on terms and conditions of the certain. Amended License Agreement between USC, Princeton and Global Photonic Energy Corporation dated May 1, 1998, as the same may be amended from time to time (the "Amended License Agreement").

Title to any inventions first conceived by MICHIGAN personnel in the performance of the work funded under this Agreement shall vest in MICHIGAN. USC shall specify in any subcontract with MICHIGAN relating hereto, that MICHIGAN shall notify both USC arid. GPEC of any such inventions funded under the subcontract and that MICHIGAN will thereby grant to GPEC the exclusive license to any and all such inventions on terms and conditions of the Amended License Agreement. The Amended License Agreement shall be managed by USC in accordance with the Interinstitutional Agreement dated May 1, 1998, as the same may be amended from time to time, between USC and Princeton.

USC shall promptly provide a complete written disclosure for each and every invention first conceived or discovered in the performance of the work funded under this Agreement, including MICHIGAN technologies disclosed to USC as required under any subcontract relating hereto. All such inventions shall automatically become subject to the Amended License Agreement.

USC shall provide timely input for the preparation and filing of intellectual property protection for invention disclosures made to OPEC tinder this Agreement.

Title to any inventions first conceived jointly by personnel from MICHIGAN, USC or GPEC shall vest jointly in the names of USC, MICHIGAN, or OPEC as appropriate, and shall be subject to the Amended License Agreement.

No other commercial entity shall fund Professor Thompson's or Professor Forrest's work in the area of photovoltaic cells for photonic energy conversion.

	
9.

	
Publication

USC shall have the right, at its discretion, to release information or to publish any material resulting from the Research. USC shall furnish OPEC with a copy of any proposed publication thirty (30) days prior to submission for publication for review and comment. GPEC may request USC to delay publishing such proposed publication for a maximum of an additional sixty (60) days in order to protect the potential possibility of any invention described therein.

USC and MICHIGAN will provide GPEC with, an electronic copy of any presentation relating to the Research presented by the Researchers to external parties within thirty (30) days of the presentation.

USC and MICHIGAN shall give OPEC the option of receiving an acknowledgement in any publication for its sponsorship of the Research.

	
10.

	
Consultation

Selected personnel of GPEC, designated by OPEC to USC, shall have the right to confer with the Principal Investigator and his associates for such reasonable periods and at such times as are mutually agreeable.

	
11.

	
Publicity and Use of Names

Neither GPEC nor USC will use the name of the other in connection with any products, promotional literature, or advertising material without the prior written permission of the other party which shall not be unreasonably withheld, or except to the extent required by law. This shall not include documents available to the public that identify the existence of the Agreement. If appropriate, USC shall acknowledge GPEC as a sponsor and exclusive licensee of certain photovoltaics technologies for energy conversion developed in the laboratory of Professor Mark E. Thompson.

 

  

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12.

	
Reports

USC shall furnish OPEC calendar year quarterly reports during the term of this Agreement summarizing the research conducted. These quarterly reports shall be due the first day of the 2" month following the end of the quarter being reported. The written quarterly reports shall include review of specific research work that has been completed during the quarter, review of data and other relevant information for research work that has been completed during the quarter and an overview of specific research work plans for the following quarter and expected impact. Performance metrics (Voc, Jsc, FF, PCE ) will be reported for solar cells under standard test conditions.

A final report setting forth the accomplishments and significant research findings shall be prepared by USC and submitted to GPEC within ninety (90) days of the expiration of the Agreement.

USC shall also furnish to GPEC an annual expenditure report outlining spending by major budget categories listed in the proposed budget.

	
13.

	
Proprietary/Confidential Information

All information given to GPEC by USC or MICHIGAN or by GPEC to USC or MICHIGAN shall be used only for the purposes given and shall be held in confidence by the receiving party, except if disclosure is required by law, so long as such information (i) remains unpublished by the giving party or does not otherwise become in the public domain, (ii) is not lawfully received by the receiving party from a third party, or (iii) is independently developed by the receiving party without the benefit of such information. USC, MICHIGAN and GPEC agree to use all reasonable efforts to maintain the confidentiality of the information provided to it by the other party. USC designated recipients shall only be Professor Mark E. Thompson. USC will ensure that its subcontractor shall also comply with this clause.

USC retains the right to refuse to accept any such information that it does not consider essential to the completion of the Research.

	
14.

	
Indemnification

GPEC agrees to indemnify, defend, and hold harmless USC and/or any trustee, officer, employee, or other representative of USC from and against all claims, demands, suits, investigations, judgments, settlements, liabilities and expenses (including reasonable legal fees and expenses of counsel acceptable to USC) arising out this Agreement, other than for damage arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of USC, its trustees, officers, agents, or employees.

	
15.

	
Limitation of Liability

To the maximum extent permitted by law, in no event will either party be responsible for any incidental damages, consequential damages, exemplary damages of any kind, lost goodwill, lost profits, lost business and/or any indirect economic damages whatsoever regardless of whether such damages arise from claims based upon contract, negligence, tort (including strict liability or other legal theory), a breach of, any warranty or term of this agreement, and regardless of whether a party was advised or had reason to know of the possibility of incurring such damages in advance.

 

  

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16.

	
Warranties

USC makes no warranties, express or implied, as to any matter whatsoever, including, without limitation, the condition of the research or any inventions(s) or, product(s), whether tangible or intangible, conceived, discovered, or developed under this Agreement; or the ownership, merchantability, or fitness for a particular purpose of the research or any such invention or product. USC shall not be liable for any direct, consequential, special or other damages suffered by any licensee or any others resulting from the use of the research or any such invention or product.

	
17.

	
Equipment

Title to any equipment purchased or manufactured in the performance of the work funded under the Agreement shall, vest in USC.

	
18.

	
Assignment

Neither party shall assign this Agreement to another without the prior written consent of the other party which will not be unreasonably withheld; provided, however, that OPEC may assign this Agreement to a successor in ownership of all or substantially all its business assets. Such successor shall expressly assume in writing the obligation to perform in accordance with the terms and conditions of this Agreement. Any other purported assignment shall be void.

	
19.

	
Notices

Notices, invoices, communications, and payments hereunder shall be sent to the following contacts for the parties:

	
For GPEC:

	
For USC:

	
Aaron L. Wadell, COO

	
Vanessa Nichols

	
Global, Photontic Energy Corporation

	
Contracts and Grants Administrator

	
375 Phillips Boulevard.

	
University of Southern California

	
Ewing, New Jersey 08618

	
837 West Downey Way

	
Phone: 609-434-0002

	
Los Angeles, CA 90087-1147

	
Fax: 801-406-3156

	
Phone: 213-740-7762

	
email: awadell@globalphotonic.corn

	
Fax: 213-740-6070

	
 

	

email: vnichols@usc.edu

	
20.

	
Independent Inquiry

Nothing in this Agreement shall be construed to limit the freedom of researchers who are not participants in this Agreement from engaging in similar research inquiries made independently under other grants, contracts or agreements with parties other than GPEC.

	
21.

	
Visiting Personnel

During the term of the Agreement, GPEC may appoint Visiting Personnel (Visitors) to work in support of the Research and separately toward the advancement of OPEC's technology development goals in the research laboratories of Professor Thompson and/or Professor Forrest. Visitors shall be given appropriate access to complete these goals and shall be subject to Exhibit C, Visiting Personnel Terms and Conditions.

	
22.

	
Governing Law

The laws of the State of New York shall govern this Agreement.

  

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USC and OPEC agree to abide by all Federal, State and local laws, rules, regulations, and ordinances in the performance of this Agreement.

	
23.

	
Subcontract to MICHIGAN

This research collaboration includes a subcontract with MICHIGAN which USC will execute and manage. The terms of that research agreement will be substantially the same as the current arrangement between USC and Princeton, and USC agrees to disclose those terms to OPEC at GPEC's request.

	
24.

	
MICHIGAN to Join Amended License Agreement and Interinstitutional Agreement

In connection with its roles as subcontractor hereunder, effective as of the date hereof, MICHIGAN agrees to become a party to both the Amended License Agreement and the Interinstitutional Agreement.

	
25.

	
Arbitration

In the event of a dispute between the parties, the aggrieved party shall notify the other party and provide a detailed description of the alleged problem. The parties agree to use reasonable efforts to resolve such dispute by good faith negotiations and mutual agreement. In the event such informal resolution is not successful within a reasonable period of time, the parties hereby agree to submit any claim or dispute arising out of or relating to the terms of this Agreement to private and confidential arbitration by a single neutral arbitrator in New York, New York. Subject to the terms of this paragraph, the Arbitration Rules of JAMS shall govern the arbitration proceedings. The arbitrator shall be appointed by agreement of the Parties hereto or, if no agreement can be reached, by JAMS pursuant to its Rules. The decision of the arbitrator shall be final and binding on all Parties to this Agreement, and judgment thereon may be entered in any court of competent jurisdiction. The arbitrators shall have no power to add to, or subtract from or modify any of the terms or conditions of this Agreement, the Amended License Agreement, and the Interinstitutional Agreement, including any amendments or changes as may be approved by the parties from time to time. The costs of the arbitration proceeding, including all attorneys' fees, shall be paid by the Party against whom the arbitrator rules. This arbitration procedure is intended to be the sole and exclusive method of resolving any claim arising out of or relating to this Agreement.

  

6

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate by proper persons thereunto duly authorized.

	
Global Photonic Energy Corporation

	  	
University of Southern California

	  	  	  	  	  
	
By:

	
/s/ Aaron L. Wadell

	  	
By:

	
/s/ Barbara A. Lewis

	
Name:

	
Aaron L. Wadell

	  	
Name:

	
Barbara A. Lewis

	
Title:

	
Chief Operating Officer

	  	
Title:

	
Deputy Director, Department of Contracts and Grants

	 	 	 	 	 
	
Date:

	
4/24/06

	  	
Date:

	
4-12-06

	  	  	  	  	  
	  	  	  	  	  
	
Read and Understood:

	  	
 

	  
	
Date:

	
April 12, 2006

	  	  	

/s/ Mark E. Thompson

	 	  	  	Mark E. Thompson, Professor and Principal Investigator
	 	 	 	 
	Read and Understood: 	 	 	 
	
Date:

	  	  	  	

/s/ Stephen R. Forrest

	 	  	  	  	Stephen R. Forrest, Professor and Principal Investigator

 

  

7

  

 

EXHIBIT A

 

[***]

  

A-1

  

 

EXHIBIT B

 

	
PROPOSED GPEC BUDGET: Mark E. Thompson (P1)

	  	  	  	  
	
Title: Thin Film Solid State Organic Energy Conversion Devices

	  	  	  	  
	
Period of Performance: 05/01/06 - 04/30/2009

	  	  	  	  
	  	  	  	  	  
	  	
YEAR 1

	
02/15/2006 -

	
YEAR 3

	
TOTALS

	  	
05/01/2006 -

	
05/01/2007 -

	
05/01/2008 -

	  
	  	
4/30/2007

	
4/30/2008

	
4/30/2009

	  
	
A. SALARIES

	  	  	  	  
	  	  	  	  	  
	
[***]

	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
Total PI and Postdoc Salaries

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
Total Salaries

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
B. FRINGE BENEFITS

	  	  	  	  
	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  	  	  
	
C. MATERIALS & SUPPLIES

	  	  	  	  
	  	  	  	  	  
	
Chemicals, solvents, gases, glassware, subtrates, etc.

	
24,000

	
21,000

	
18,000

	
63,000

	
Elemental analysis, crystallography

	
1,000

	
1,000

	
1,000

	
3,000

	  	  	  	  	  
	
Total Materials & Supplies

	
25,000

	
22,000

	
19,000

	
66,000

	  	  	  	  	  
	
D. TRAVEL

	
2,000

	
2,000

	
2,000

	
6,000

	  	  	  	  	  
	
Total Direct Costs

	
152,290

	
152,453

	
152,744

	
457,487

	  	  	  	  	  
	
F. INDIRECT COSTS (MTDC)

	  	  	  	  
	
2/1/06 to 6/30/06, 62.5%

	
39,659

	
0

	
0

	
39,659

	
7/1/06 on, 63.0%

	
55,967

	
96,046

	
96,229

	
248,241

	  	  	  	  	  
	
Indirect Costs for first $25K subcontract

	  	  	  	  
	
2/1/06 to 6/30/06, 62.5%

	
15,625

	
0

	
0

	
15,625

	  	  	  	  	  
	
Total Indirect Costs

	
111,251

	
96,046

	
96,229

	
303,525

	  	  	  	  	  
	
G. SUBTOTALS

	
263,541

	
248,499

	
248,973

	
761,012

	  	  	  	  	  
	
H. UNIVERSITY OF MICHIGAN (SUBCONTRACT)

	
596,556

	
617,194

	
650,130

	
1,863,880

	  	  	  	  	  
	
I. TOTAL REQUESTED

	
860,097

	
865,693

	
899,103

	
2,624,893

	  	  	  	  	  
	
J. GRAND TOTAL REQUESTED

	
2,624,893 

	  	  	  

 

  

B-1

  

 

	
PROPOSED GPEC BUDGET: Stephen R. Forrest

	
 

	
 

	Increment       	1.04      	  	  	  
	
Title: Thin Film Solid State Organic Energy Conversion Devices

	  	  	  	  	  	  	  
	
Period of Performance: 05/01/06 - 04/30/2009

	  	  	  	  	  	  	  
	  	
Year 1

	
Year 2

	
Year 3

	
TOTALS

	 	  	  
	  	
05/01/2006 -

	
05/01/2007 -

	
05/01/2008 -

	  	  	  	  
	  	
4/30/2007

	
4/30/2008

	
4/30/2009

	  	  	  	  
	  	  	  	  	  	  	  	  
	
A. Salaries

	  	  	  	  	  	  	  
	  	  	  	  	  	  	
AY Base

	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	
[***]

	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	
[***]

	  
	  	  	  	  	  	  	  	  
	
Total Salaries

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  
	  	  	  	  	  	  	  	  
	
B. Fringe Benefits

	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	
[***]

	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	  	  
	  	  	  	  	  	  	  	  
	
[***]

	
[***]

	
[***]

	
[***]

	
[***]

	  	
[***]

	  
	  	  	  	  	  	  	  	  
	
C. Materials & Supplies

	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	
Chemicals, solvents, gases, glassware, etc.

	
26,225

	
27,800

	
29,760

	
83,785

	  	  	  
	
MNF user fees

	
38,160

	
39,686

	
41,274

	
119,120

	  	
795

	
 fee/mo/R

	
Elemental analysis, crystallography

	
2,000

	
2,080

	
2,163

	
6,243

	  	  	  
	  	  	  	  	  	  	  	  
	
Copying, toll, shipping, computer supplies

	

725

	

754

	

784

	

2,263 

	  	  	  
	  	  	  	  	  	  	  	  
	
Publication costs

	
2,000

	
2,000

	
3,000

	
7,000

	  	  	  
	  	  	  	  	  	  	  	  
	
Total Materials & Supplies

	
69,110

	
72,320

	
76,981

	
218,412

	  	  	  
	  	  	  	  	  	  	  	  
	
D. Travel

	
8,000

	
8,320

	
8,653

	
24,973

	  	  	  
	  	  	  	  	  	  	  	  
	
E. Equipment

	
60,000

	
60,000

	
65,000

	
185,000

	  	  	  
	  	  	  	  	  	  	  	  
	
Total Direct Costs

	
427,982

	
443,147

	
467,071

	
1,338,200

	  	  	  
	  	  	  	  	  	  	  	  
	
G. Indirect Costs

	  	  	  	  	  	  	  
	
Modified TDC base

	
293,172

	
305,345

	
321,157

	
919,674

	  	  	  
	  	  	  	  	  	  	  	  
	
1/15/06 to 6/30/06, 58%

	
85,020

	  	  	
85,020

	  	  	  
	
7/1/06 on, 57.0%

	
83,554

	
174,047

	
183,059

	
440,660

	  	  	  
	  	
0

	  	  	
0

	  	  	  
	  	  	  	  	  	  	  	  
	
Total Indirect Costs

	
168,574

	
174,047

	
183,059

	
525,680

	  	  	  
	  	  	  	  	  	  	  	  
	
Total Requested Per Year

	
596,556

	
617,194

	
650,130

	
1,863,879

	  	  	  

 

 

 

B-2

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